Icahn Enterprises L.P. (Nasdaq: IEP) Today Announced Its Third Quarter 2024 Financial Results
SUNNY ISLES BEACH, Fla., Nov. 8, 2024 /PRNewswire/ -- Chairman Carl C. Icahn stated, "I strongly believe that our portfolio, both for the investment segment and the controlled businesses, has significant opportunities ahead. Rarely have I seen a stock market with such extreme valuations, with some companies trading at unjustifiable premiums and others being massively undervalued. These undervalued situations have created great opportunities for activists. To take advantage of these opportunities when they occur, we have always maintained a war chest of liquidity. As of October 31, we had approximately $2.3 billion between cash and cash equivalents at the holding company and the investment funds. I believe one such opportunity is CVI and, as such, we intend to launch a tender offer to acquire additional shares (see separate press release). To help fund this investment and take advantage of additional opportunities, both within and outside of our existing portfolio, while also maintaining the war chest, we have made the decision to decrease the quarterly distribution from $1.00 per depositary unit to $0.50 per depositary unit. At yesterday's share price, this new distribution reflects a 16% annualized yield. We have always endeavored, at IEP, at our controlled operating subsidiaries and at the companies within our Investment segment, where we hold minority investments and often exercise influence through board representation, to deliver large returns of capital for investors. We believe our record shows that we have been largely successful in those efforts over the years. Our philosophy in that regard has not changed and, while we obviously cannot make any guarantees, we hope and believe that the actions we take today and in the near term will lead to increased capital returns to our unitholders in the future."
Third quarter net income attributable to IEP of $22 million, an improvement of $28 million over prior year quarter
Third quarter Adjusted EBITDA attributable to IEP of $183 million, compared to $243 million for the prior year quarter
Indicative Net Asset Value was approximately $3.6 billion as of September 30, 2024, a decrease of $423 million compared to June 30, 2024
IEP declares third quarter distribution of $0.50 per depositary unit
Financial Summary
(Net loss and Adjusted EBITDA figures in commentary below are attributable to Icahn Enterprises, unless otherwise specified)
For the three months ended September 30, 2024, revenues were $2.8 billion and net income was $22 million, or $0.05 per depositary unit. For the three months ended September 30, 2023, revenues were $3.0 billion and net loss was $6 million, or a loss of $0.01 per depositary unit. Adjusted EBITDA was $183 million for the three months ended September 30, 2024, compared to an Adjusted EBITDA of $243 million for the three months ended September 30, 2023.
For the nine months ended September 30, 2024, revenues were $7.5 billion and net loss was $347 million, or a loss of $0.75 per depositary unit. For the nine months ended September 30, 2023, revenues were $8.2 billion and net loss was $545 million, or a loss of $1.47 per depositary unit. Adjusted EBITDA was $162 million for the nine months ended September 30, 2024, compared to an Adjusted EBITDA of $352 million for the nine months ended September 30, 2023.
As of September 30, 2024, indicative net asset value decreased $423 million compared to June 30, 2024. The change in indicative net asset value is primarily driven by positive performance in the investment funds of $192 million which was more than offset by the decline in CVI of $249 million, Automotive Services of $193 million, and the distribution to unitholders of $113 million. We have replaced senior leadership in our Automotive Services business and believe we are seeing early signs of recovery.
On November 6, 2024, the Board of Directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $0.50 per depositary unit, which will be paid on or about December 26, 2024, to depositary unitholders of record at the close of business on November 18, 2024. Depositary unitholders will have until December 13, 2024, to make a timely election to receive either cash or additional depositary units. If a unitholder does not make a timely election, it will automatically be deemed to have elected to receive the distribution in additional depositary units. Depositary unitholders who elect to receive (or who are deemed to have elected to receive) additional depositary units will receive units valued at the volume weighted average trading price of the units during the five consecutive trading days ending December 20, 2024. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to any unitholders electing to receive (or who are deemed to have elected to receive) depositary units.
Icahn Enterprises L.P., a master limited partnership, is a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.
Caution Concerning Forward-Looking Statements
This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises and its subsidiaries, market conditions, and IEP's anticipated tender offer for shares of CVI. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks related to economic downturns, substantial competition and rising operating costs; the impacts from the ongoing Russia/Ukraine conflict and conflict in the Middle East, including economic volatility and the impacts of export controls and other economic sanctions; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest, including the impact of the use of leverage through options, short sales, swaps, forwards and other derivative instruments; declines in the fair value of our investments, losses in the private funds and loss of key employees; risks related to our ability to continue to conduct our activities in a manner so as to not be deemed an investment company under the Investment Company Act of 1940, as amended, or to be taxed as a corporation; risks related to short sellers and associated litigation and regulatory inquiries; risks relating to our general partner and controlling unitholder; pledges of our units by our controlling unitholder; risks related to our energy business, including the volatility and availability of crude oil, other feed stocks and refined products, declines in global demand for crude oil, refined products and liquid transportation fuels, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; the impact of volatile commodity pricing and higher industry utilization and oversupply of nitrogen fertilizer; risks related to potential strategic transactions involving our Energy segment; risks related to our automotive activities and exposure to adverse conditions in the automotive industry, including as a result of the Chapter 11 filing of our automotive parts subsidiary; risks related to our food packaging activities, including competition from better capitalized competitors, inability of our suppliers to timely deliver raw materials, and the failure to effectively respond to industry changes in casings technology; supply chain issues; inflation, including increased costs of raw materials and shipping, labor shortages and workforce availability; risks related to our real estate activities, including the extent of any tenant bankruptcies and insolvencies; risks related to our home fashion operations, including changes in the availability and price of raw materials, manufacturing disruptions, and changes in transportation costs and delivery times; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission including out Annual Report on Form 10-K and our quarterly reports on Form 10-Q under the caption "Risk Factors". Additionally, there may be other factors not presently known to us or which we currently consider to be immaterial that may cause our actual results to differ materially from the forward-looking statements. Past performance in our Investment segment is not indicative of future performance. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2024
2023
2024
2023
(in millions, except per unit amounts)
Revenues:
Net sales
$
2,221
$
2,991
$
6,827
$
8,433
Other revenues from operations
192
203
566
588
Net gain (loss) from investment activities
257
(332)
(318)
(1,275)
Interest and dividend income
115
143
380
481
(Loss) gain on disposition of assets, net
(1)
2
(6)
5
Other income, net
7
3
13
6
2,791
3,010
7,462
8,238
Expenses:
Cost of goods sold
2,223
2,377
6,414
6,947
Other expenses from operations
155
165
462
483
Dividend expense
14
21
47
68
Selling, general and administrative
202
209
578
653
Restructuring, net
—
1
1
1
Credit loss on related party note receivable
—
23
—
139
Loss on deconsolidation of subsidiary
—
—
—
246
Interest expense
130
148
394
426
2,724
2,944
7,896
8,963
Income (loss) before income tax expense
67
66
(434)
(725)
Income tax benefit (expense)
