FTAI Announces Third Quarter 2015 Results and Dividend of $0.33 Per Common Share

NEW YORK, Nov. 03, 2015 (GLOBE NEWSWIRE) — Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) (the “Company”) today reported financial results for the period ended September 30, 2015. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.

Financial Overview

($ in 000s, except per share data)
Selected Financial Results(1) Q3’15
Funds Available for Distribution (“FAD”) $   15,884    
Adjusted Net Income $   1,858    
Adjusted Net Income per Share $   0.02    
Adjusted EBITDA $   32,619    
   
Net Income (Loss) Attributable to Shareholders $   (11,738 )  
Basic and Diluted Earnings (Loss) per Share $   (0.16 )  
Net Cash Provided by Operating Activities $   12,239    
           

1) For definitions and reconciliations of Non-GAAP measures, please refer to the exhibit to this press release.

For the third quarter of 2015, our total FAD was $15.9 million. This amount includes $33.4 million from equipment leasing activities, offset by $(8.1) million and $(9.4) million from infrastructure and corporate activities, respectively. Net Income (Loss) Attributable to Shareholders for the quarter ending September 30, 2015 includes a non-cash impairment charge of $10.5 million recorded by an investment within our shipping containers segment.

Third Quarter 2015 Dividend

The Company’s Board of Directors declared a cash dividend of $0.33 per common share, payable on November 30, 2015, to holders of record on November 20, 2015.

Additional Information

For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of the Company’s website, www.ftandi.com, and the Company’s Quarterly Report on Form 10-Q, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein.

Conference Call

The Company will host a conference call on November 4, 2015 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing 1-855-548-8666 (from within the U.S.) or 1-412-455-6183 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “FTAI Third Quarter Earnings Call.” A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.ftandi.com.

Following the call, a replay of the conference call will be available after 12:00 P.M. on November 4, 2015 through midnight Tuesday, November 10, 2015 at 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.), Passcode: 59243984.

About Fortress Transportation and Infrastructure Investors LLC

Fortress Transportation and Infrastructure Investors LLC owns and acquires high quality infrastructure and equipment that is essential for the transportation of goods and people globally. FTAI targets assets that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” incorporated by reference in the Company’s Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftandi.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

U.S. FEDERAL INCOME TAX IMPLICATIONS OF DIVIDEND

This announcement is intended to be a qualified notice as provided in the Internal Revenue Code (the “Code”) and the Regulations thereunder. For U.S. federal income tax purposes, the dividend declared in November 2015 will be treated as a partnership distribution. The per share distribution components are as follows:

Distribution Components  
U.S. Long Term Capital Gain (1) $ 0.0000  
Non-U.S. Long Term Capital Gain $ 0.0000  
U.S. Portfolio Interest Income (2) $ 0.1100  
U.S. Dividend Income (3) $ 0.0000  
Income Not from U.S. Sources(4) / Return of Capital $ 0.2200  
Distribution Per Share $ 0.3300  

1) U.S. Long Term Capital Gain realized on the sale of a United States Real Property Holding Corporation. As a result, the gain from the sale will be treated as income that is effectively connected with a U.S. trade or business.
2) Eligible for the U.S. portfolio interest exemption for any holder not considered a 10-Percent shareholder under §871(h)(3)(B) of the Code.
3) This income is subject to withholding under §1441 of the Code.
4) This income is not subject to withholding under §1441 or §1446 of the Code.

It is possible that a common shareholder’s allocable share of FTAI’s taxable income may differ from the distribution amounts reflected above.

Exhibit – Financial Statements

 

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
 
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2015   2014   2015   2014
Revenues                
Equipment leasing revenues   $ 24,360     $ 10,571     $ 70,031     $ 28,018  
Infrastructure revenues   10,873     5,509     32,739     6,493  
Total revenues   35,233     16,080     102,770     34,511  
                 
Expenses                
Operating expenses   17,879     9,360     50,198     12,705  
General and administrative   2,568     401     4,905     1,349  
Acquisition and transaction expenses   2,206     808     4,172     11,281  
Management fees and incentive allocation to affiliate   4,606     1,698     10,505     3,535  
Depreciation and amortization   11,548     4,118     32,875     8,741  
Interest expense   4,668     1,348     14,240     2,920  
Total expenses   43,475     17,733     116,895     40,531  
                 
Other income (expense)                
Equity in (loss) earnings of unconsolidated entities   (9,584 )   1,700     (7,118 )   4,831  
Gain on sale of equipment, net   1,746     1,849     2,037     4,064  
Interest income   159     52     462     66  
Other income, net   15     154     6     134  
Total other income (expense)   (7,664 )   3,755     (4,613 )   9,095  
                 
(Loss) Income before income taxes   (15,906 )   2,102     (18,738 )   3,075  
Provision for income taxes   150     156     646     714  
Net (loss) income   (16,056 )   1,946     (19,384 )   2,361  
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries   (4,318 )   (2,085 )   (12,257 )   (1,744 )
Net (loss) income attributable to shareholders   $ (11,738 )   $ 4,031     $ (7,127 )   $ 4,105  
                 
(Loss) Earnings per Share:                
Basic and Diluted   $ (0.16 )   $ 0.08     $ (0.11 )   $ 0.08  
Weighted Average Shares Outstanding:                
Basic   75,718,183     53,502,873     64,114,734     53,502,873  
Diluted   75,718,183     53,502,873     64,114,734     53,502,873  

 

 
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
 
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
 
    September 30,
 2015
  December 31, 2014
     
Assets        
Cash and cash equivalents   $ 448,299     $ 22,125  
Restricted cash   16,169     21,084  
Accounts receivable, net   11,849     9,588  
Leasing equipment, net   616,019     509,379  
Finance leases, net   85,401     102,813  
Property, plant, and equipment, net   294,352     227,381  
Investment in and advances to unconsolidated entity   11,370     21,569  
Tendered bonds       298,000  
Intangible assets, net   46,648     52,169  
Goodwill   116,584     116,584  
Other assets   35,445     24,048  
Total assets   $ 1,682,136     $ 1,404,740  
         
Liabilities        
Accounts payable and accrued liabilities   $ 32,367     $ 43,174  
Debt   274,942     592,867  
Maintenance deposits   30,001     35,575  
Security deposits   15,950     13,622  
Other liabilities   8,066     6,005  
Total liabilities   361,326     691,243  
         
Equity        
Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 75,718,183 and 53,502,873 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively)   757     535  
Additional paid in capital   1,209,183     613,683  
Accumulated deficit   (14,070 )    
Accumulated other comprehensive (loss) income   (16 )   214  
Shareholders’ equity   1,195,854     614,432  
Non-controlling interest in equity of consolidated subsidiaries   124,956     99,065  
Total equity   1,320,810     713,497  
Total liabilities and equity   $ 1,682,136     $ 1,404,740  

 

 
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)
 
  Nine Months Ended September 30,
  2015   2014
Cash flows from operating activities:      
Net (loss) income $ (19,384 )   $ 2,361  
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity in loss (earnings) of unconsolidated entities 7,118     (4,831 )
Gain on sale of equipment (2,037 )   (4,064 )
Security deposits and maintenance claims included in earnings (439 )    
Equity-based compensation 3,694     284  
Depreciation and amortization 32,875     8,741  
Change in current and deferred income taxes 127     714  
Change in fair value of non-hedge derivative 14     19  
Amortization of lease intangibles and incentives 5,380     1,652  
Amortization of deferred financing costs 1,101     188  
Operating distributions from unconsolidated entities 160     6,942  
Bad debt expense 255     175  
Other (362 )   (9 )
Change in:      
Accounts receivable (2,718 )   (4,917 )
Other assets (3,540 )   (4,365 )
Accounts payable and accrued liabilities 4,109     (32,884 )
Management fees payable to affiliate (1,207 )   434  
Other liabilities 1,724     1,774  
Net cash provided by (used in) operating activities 26,870     (27,786 )
       
Cash flows from investing activities:      
Change in restricted cash 4,915     (6,120 )
Investment in notes receivable (10,776 )    
Construction deposit related to vessel     (3,725 )
Principal collections on finance leases 17,412     9,028  
Acquisition of leasing equipment (136,672 )   (215,770 )
Acquisition of property plant and equipment (88,068 )   (16,038 )
Acquisition of lease intangibles (2,447 )   (3,745 )
Acquisition of CMQR     (11,308 )
Acquisition of Jefferson Terminal     (47,811 )
Acquisition of pre-existing debt relationships     (97,616 )
Purchase deposit for aircraft and aircraft engines (250 )   (7,427 )
Proceeds from sale of leasing equipment 9,000     18,975  
Proceeds from sale of property, plant and equipment 253     428  
Proceeds from sale of equipment held for sale     135  
Return of capital distributions from unconsolidated entities 2,921     6,307  
Net cash used in investing activities $ (203,712 )   $ (374,687 )

 

 
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)
 
  Nine Months Ended September 30,
  2015   2014
Cash flows from financing activities:      
Proceeds from debt $ 200     $ 175,349  
Repayment of debt (19,764 )   (26,886 )
Payment of deferred financing costs     (4,793 )
Receipt of security deposits 1,695     1,974  
Return of security deposits (710 )   (500 )
Receipt of maintenance deposits 7,127     2,274  
Release of maintenance deposits (10,673 )    
Proceeds from issuance of common shares, net of underwriter’s discount 354,057      
Common shares issuance costs (2,998 )    
Capital contributions from shareholders 295,879     290,930  
Capital distributions to shareholders (44,917 )   (43,410 )
Capital contributions from non-controlling interests 34,787     43,612  
Capital distributions to non-controlling interests (309 )   (422 )
Cash dividends paid (11,358 )    
Net cash provided by financing activities 603,016     438,128  
       
Net increase in cash and cash equivalents 426,174     35,655  
Cash and cash equivalents, beginning of period 22,125     7,236  
Cash and cash equivalents, end of period $ 448,299     $ 42,891  
       
Supplemental disclosure of non-cash investing and financing activities:      
Acquisition of leasing equipment $ (1,083 )   $ (25,748 )
Acquisition of CMQR $     $ (2,991 )
Acquisition of Jefferson $     $ (38,207 )
Acquisition of property, plant and equipment $ (59 )   $ (5,000 )
Settled and assumed security deposits $ 2,463     $ 940  
Billed, assumed and settled maintenance deposits $ (2,710 )   $ 13,042  
Non-cash contribution of non-controlling interest $     $ 38,207  
Common share issuance costs $ (1,908 )   $  
Change in fair value of cash flow hedge $ (230 )   $ (25 )


Key Performance Measures

Management utilizes Adjusted Net Income and Adjusted EBITDA as performance measures. Adjusted Net Income is the key performance measure and reflects the current management of our businesses and provides us with the information necessary to assess operational performance as well as make resource and allocation decisions. Adjusted Net Income should not be considered as an alternative to net income attributable to shareholders as determined in accordance with Generally Accepted Accounting Principles (“GAAP”).

Adjusted Net Income is defined as net income attributable to shareholders, adjusted (a) to exclude the impact of provision for income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, and equity in earnings of unconsolidated entities; (b) to include the impact of cash income tax payments, our pro-rata share of the Adjusted Net Income from unconsolidated entities (collectively “Adjusted Net Income”), and (c) to exclude the impact of the non-controlling share of Adjusted Net Income. We evaluate investment performance for each reportable segment primarily based on Adjusted Net Income. We believe that net income attributable to shareholders as defined by GAAP is the most appropriate earnings measurement with which to reconcile Adjusted Net Income.

The following table presents our consolidated reconciliation of net income attributable to shareholders to Adjusted Net Income for the three and nine months ended September 30, 2015 and September 30, 2014:

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2015   2014   2015   2014
  (in thousands)
Net (loss) income attributable to shareholders $ (11,738 )   $ 4,031     $ (7,127 )   $ 4,105  
Add: Provision for income taxes 150     156     646     714  
Add: Equity-based compensation expense 1,094     284     3,694     284  
Add: Acquisition and transaction expenses 2,206     808     4,172     11,281  
Add: Losses on the modification or extinguishment of debt and capital lease obligations              
Add: Changes in fair value of non-hedge derivative instruments 5     (1 )   14     19  
Add: Asset impairment charges              
Add: Pro-rata share of Adjusted Net Income from unconsolidated entities (1) 924     1,762     3,390     4,893  
Add: Incentive allocations              
Less: Cash payments for income taxes 3         (507 )    
Less: Equity in earnings of unconsolidated entities 9,584     (1,700 )   7,118     (4,831 )
Less: Non-controlling share of Adjusted Net Income (2) (370 )   (233 )   (1,050 )   (233 )
Adjusted Net Income $ 1,858     $ 5,107     $ 10,350     $ 16,232  

______________________________________________________________________________________
(1) Pro-rata share of Adjusted Net Income from unconsolidated entities includes the Company’s proportionate share of the unconsolidated entities’ net income adjusted for asset impairment charges of $10,508 for the three and nine months ended September 30, 2015. Pro-rata share of Adjusted Net Income from unconsolidated entities includes the Company’s proportionate share of the unconsolidated entities’ net income adjusted for loss on extinguishment of debt of $62 for the three and nine months ended September 30, 2014.
(2) Non-controlling share of Adjusted Net Income is comprised of the following for the three months ended September 30, 2015 and 2014, respectively: (i) equity-based compensation of $368 and $114, (ii) provision for income tax of $1 and $119, and (iii) cash tax payments of $1 and $0. Non-controlling share of Adjusted Net Income is comprised of the following for the nine months ended September 30, 2015 and 2014, respectively: (i) equity-based compensation of $1,099 and $114, (ii) provision for income tax of $21 and $119, and (iii) cash tax payments of $(70) and $0.

In addition, we view Adjusted EBITDA as a secondary measurement to Adjusted Net Income, which serves as a useful supplement to investors, analysts and management to measure operating performance of deployed assets and to compare the Company’s operating results to the operating results of our peers and between periods on a consistent basis. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other entities may not calculate Adjusted EBITDA in the same manner.

Adjusted EBITDA is defined as net income attributable to shareholders, adjusted (a) to exclude the impact of provision for income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, and interest expense; (b) to include the impact of principal collections on direct finance leases (collectively, “Adjusted EBITDA”) and our pro-rata share of Adjusted EBITDA from unconsolidated entities; and (c) to exclude the impact of equity in earnings of unconsolidated entities and the non-controlling share of Adjusted EBITDA.

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three and nine months ended September 30, 2015 and September 30, 2014:

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2015   2014   2015   2014
  (in thousands)
Net (loss) income attributable to shareholders $ (11,738 )   $ 4,031     $ (7,127 )   $ 4,105  
Add: Provision for income taxes 150     156     646     714  
Add: Equity-based compensation expense 1,094     284     3,694     284  
Add: Acquisition and transaction expenses 2,206     808     4,172     11,281  
Add: Losses on the modification or extinguishment of debt and capital lease obligations              
Add: Changes in fair value of non-hedge derivative instruments 5     (1 )   14     19  
Add: Asset impairment charges              
Add: Incentive allocations              
Add: Depreciation & amortization expense (3) 13,015     4,914     38,255     10,393  
Add: Interest expense 4,668     1,348     14,240     2,920  
Add: Principal collections on direct finance leases 11,270     3,363     17,412     9,028  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (4) 5,369     17,351     16,200     33,946  
Less: Equity in earnings of unconsolidated entities 9,584     (1,700 )   7,118     (4,831 )
Less: Non-controlling share of Adjusted EBITDA (5) (3,004 )   (795 )   (9,041 )   (978 )
Adjusted EBITDA $ 32,619     $ 29,759     $ 85,583     $ 66,881  

______________________________________________________________________________________
(3) Depreciation and amortization expense includes $11,548 and $4,118 of depreciation and amortization expense, $1,405 and $796 of lease intangible amortization, and $62 and $0 of amortization for lease incentives in the three months ended September 30, 2015 and 2014, respectively. Depreciation and amortization expense includes $32,875 and $8,741 of depreciation and amortization expense, $5,198 and $1,652 of lease intangible amortization, and $182 and $0 of amortization for lease incentives in the nine months ended September 30, 2015 and 2014, respectively.
(4) The Company’s pro-rata share of Adjusted EBITDA from unconsolidated entities includes the following items for the three months ended September 30, 2015 and 2014: (i) net income (loss) of $(9,635) and $1,633, (ii) interest expense of $474 and $793, (iii) depreciation and amortization expense of $299 and $240, (iv) principal collections of finance leases of $3,723 and $14,685, and (v) asset impairment charges of $10,508 and $0, respectively. The Company’s pro-rata share of Adjusted EBITDA from unconsolidated entities includes the following items for the nine months ended September 30, 2015 and 2014: (i) net income (loss) of $(7,278) and $4,614, (ii) interest expense of $1,422 and $2,066, (iii) depreciation and amortization expense of $910 and $922, (iv) principal collections of finance leases of $10,638 and $26,344, and (v) asset impairment charges of $10,508 and $0, respectively.
(5) Non-controlling share of Adjusted EBITDA is comprised of the following items for the three months ended September 30, 2015 and 2014: (i) equity based compensation of $368 and $114, (ii) provision for income taxes of $1 and $119, (iii) interest expense of $1,185 and $206, and (iv) depreciation and amortization expense of $1,450 and $356, respectively. Non-controlling share of Adjusted EBITDA is comprised of the following items for the nine months ended September 30, 2015 and 2014: (i) equity based compensation of $1,099 and $114, (ii) provision for income taxes of $21 and $119, (iii) interest expense of $3,630 and $277, and (iv) depreciation and amortization expense of $4,291 and $468, respectively.

The Company uses Funds Available for Distribution (“FAD”) in evaluating its ability to meet its stated dividend policy. FAD is not a financial measure in accordance with GAAP. The GAAP measure most directly comparable to FAD is net cash provided by operating activities. The Company believes FAD will be a useful metric for investors and analysts for similar purposes. The Company defines FAD as: net cash provided by (used in) operating activities plus principal collections on finance leases, proceeds from sale of assets, and return of capital distributions from unconsolidated entities, less required payments on debt obligations and capital distributions to non-controlling interest, and excluding changes in working capital.

The following table sets forth a reconciliation of net cash provided by operating activities to FAD for the nine months ended September 30, 2015 and 2014:

  Nine Months Ended
  September 30,
2015
  September 30,
2014
  (in thousands)
Net Cash Provided by (Used in) Operating Activities $ 26,870     $ (27,786 )
Add: Principal Collections on Finance Leases 17,412     9,028  
Add: Proceeds from sale of assets 9,253     19,538  
Add: Return of Capital Distributions from Unconsolidated Entities 2,921     6,307  
Less: Required Payments on Debt Obligations (19,764 )   (26,886 )
Less: Capital Distributions to Non-Controlling Interest (309 )   (422 )
Exclude: Changes in Working Capital 1,632     39,958  
Funds Available for Distribution (FAD) $ 38,015     $ 19,737  

The following tables set forth a reconciliation of net cash provided by operating activities to FAD for the three and nine months ended September 30, 2015:

  Three Months Ended September 30, 2015
  (in thousands)
  Equipment
Leasing
  Infrastructure   Corporate   Total
Funds Available for Distribution (FAD) $ 33,368     $ (8,096 )   $ (9,388 )   $ 15,884  
Less: Principal Collections on Finance Leases             (11,270 )
Less: Proceeds from sale of assets             (7,628 )
Less: Return of Capital Distributions from Unconsolidated Entities             (1,637 )
Add: Required Payments on Debt Obligations             11,131  
Add: Capital Distributions to Non-Controlling Interest             55  
Include: Changes in Working Capital             5,704  
Net Cash from Operating Activities             $ 12,239  

  Nine Months Ended September 30, 2015
  (in thousands)
  Equipment
Leasing
  Infrastructure   Corporate   Total
Funds Available for Distribution (FAD) $ 78,177     $ (20,597 )   $ (19,565 )   $ 38,015  
Less: Principal Collections on Finance Leases             (17,412 )
Less: Proceeds from sale of assets             (9,253 )
Less: Return of Capital Distributions from Unconsolidated Entities             (2,921 )
Add: Required Payments on Debt Obligations             19,764  
Add: Capital Distributions to Non-Controlling Interest             309  
Include: Changes in Working Capital             (1,632 )
Net Cash from Operating Activities             $ 26,870  

FAD is subject to a number of limitations and assumptions and there can be no assurance that the Company will generate FAD sufficient to meet its intended dividends. FAD has material limitations as a liquidity measure of the Company because such measure excludes items that are required elements of the Company’s net cash provided by operating activities as described below. FAD should not be considered in isolation nor as a substitute for analysis of the Company’s results of operations under GAAP and it is not the only metric that should be considered when evaluating the Company’s ability to meet its stated dividend policy. Specifically: (i) FAD does not include equity capital raised, proceeds from any debt issuance or future equity offering, historical cash and cash equivalents and expected investments in the Company’s operations; (ii) FAD does not give pro forma effect to prior acquisitions, certain of which cannot be quantified; (iii) While FAD reflects the cash inflows from sale of certain assets, FAD does not reflect the cash outflows to acquire assets as the Company relies on alternative sources of liquidity to fund such purchases; (iv) FAD does not reflect expenditures related to capital expenditures, acquisitions and other investments as the Company has multiple sources of liquidity and intends to fund these expenditures with future incurrences of indebtedness, additional capital contributions and/or future issuances of equity; (v) FAD does not reflect any maintenance capital expenditures necessary to maintain the same level of cash generation from our capital investments; (vi) FAD does not reflect changes in working capital balances as management believes that changes in working capital are primarily driven by short term timing differences which are not meaningful to the Company’s distribution decisions; and (vii) Management has significant discretion to make distributions and the Company is not bound by any contractual provision that requires it to use cash for distributions. If such factors were included in FAD, there can be no assurance that the results would be consistent with the Company’s presentation of FAD.

CONTACT: For further information, please contact:

Alan Andreini
Investor Relations
Fortress Transportation and Infrastructure Investors LLC
(212) 798-6128
aandreini@fortress.com