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Icahn Enterprises L.P. Reports Full Year And Fourth Quarter 2012 Financial Results

Adjusted EBIT attributable to Icahn Enterprises was $1.1 billion for 2012 compared to $1.2 billion for 2011. For the fourth quarter of 2012, Adjusted EBIT attributable to Icahn Enterprises was $0.2 billion compared to $0.4 billion in the fourth quarter of 2011.

On February 11, 2013, the Board of Directors of the general partner of Icahn Enterprises L.P. approved a modification to the Company's distribution policy to increase our annual distribution to $4.00 per depositary unit, payable in either cash or additional depositary units, at the election of each depositary unit holder. Based upon the latest closing price of the depositary units of Icahn Enterprises L.P., this dividend represents an annual yield of approximately 6.5%. Carl C. Icahn, the holder of approximately 90.5% of the outstanding depositary units, has indicated that it is his present intention to elect to receive the increase in the Company's cash distribution in additional depositary units for the foreseeable future.

Icahn Enterprises L.P. (Nasdaq:IEP), a master limited partnership, is a diversified holding company engaged in nine primary business segments: Investment, Automotive, Energy, Railcar, Food Packaging, Metals, Real Estate, Gaming and Home Fashion. 

Caution Concerning Forward-Looking Statements

Results for any interim period are not necessarily indicative of results for any full fiscal period. This release contains 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 L.P. and its subsidiaries. Among these risks and uncertainties are risks related to economic downturns, substantial competition and rising operating costs; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest, losses in the private funds and loss of key employees; risks related to our automotive activities, including exposure to adverse conditions in the automotive industry, and risks related to operations in foreign countries; risks related to our energy business, including the volatility and availability of crude oil, other feed stocks and refined products, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; risk related to our gaming operations, including reductions in discretionary spending due to a downturn in the local, regional or national economy, intense competition in the gaming industry from present and emerging internet online markets and extensive regulation; risks related to our railcar activities, including reliance upon a small number of customers that represent a large percentage of revenues and backlog, the health of and prospects for the overall railcar industry and the cyclical nature of the railcar manufacturing business; risks related to our food packaging activities, including competition from better capitalized competitors, inability of its suppliers to timely deliver raw materials, and the failure to effectively respond to industry changes in casings technology; risks related to our scrap metals activities, including potential environmental exposure; 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, 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. Past performance in our Investment segment is not necessarily 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
(In millions, except per unit data)
   
  Year Ended December 31,
  2012 2011 2010
   
Revenues $15,654 $11,842 $9,072
Expenses 15,008 10,044 8,319
Income before income tax (expense) benefit 646 1,798 753
Income tax (expense) benefit 81 (34) (9)
Income from continuing operations 727 1,764 744
Loss from discontinued operations (1)
Net income 727 1,764 743
Less: net income attributable to non-controlling interests (331) (1,014) (544)
Net income  attributable to Icahn Enterprises $396 $750 $199
       
Basic income per LP unit $3.75 $8.35 $2.27
Basic weighted average LP units outstanding 101 88 86
   
Diluted income per LP unit $3.75 $8.15 $2.26
Diluted weighted average LP units outstanding 101 93 87

 

CONSOLIDATED BALANCE SHEETS
(In millions, except unit amounts)
     
  December 31, 2012 December 31, 2011
ASSETS    
Cash and cash equivalents $3,071 $2,278
Cash held at consolidated affiliated partnerships and restricted cash 1,419 4,979
Investments 5,491 8,938
Accounts receivable, net 1,841 1,424
Due from brokers 94 30
Inventories, net 1,955 1,344
Property, plant and equipment, net 6,523 3,505
Goodwill 2,082 1,127
Intangible assets, net 1,206 899
Other assets 874 612
Total Assets $24,556 $25,136
LIABILITIES AND EQUITY    
Accounts payable $1,383 $970
Accrued expenses and other liabilities 1,496 1,317
Deferred tax liability 1,335 556
Securities sold, not yet purchased, at fair value 533 4,476
Due to brokers 2,171
Post-employment benefit liability 1,488 1,340
Debt 8,548 6,473
Total liabilities 14,783 17,303
     
Equity:    
Limited partners 4,913 4,038
General partner (244) (271)
Treasury units at cost: 1,137,200 depositary units at December 31, 2011 (12)
Equity attributable to Icahn Enterprises 4,669 3,755
Equity attributable to non-controlling interests 5,104 4,078
Total Equity 9,773 7,833
Total Liabilities and Equity $24,556 $25,136

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT. EBITDA represents earnings before interest expense, income tax (benefit) expense and depreciation and amortization.  EBIT represents earnings before interest expense and income tax (benefit) expense. We define Adjusted EBITDA and Adjusted EBIT as EBITDA and EBIT, respectively, excluding the effects of impairment, restructuring costs, certain pension plan expenses, OPEB curtailment gains, purchase accounting inventory adjustments, certain share based compensation, discontinued operations, gains/losses on extinguishment of debt, major scheduled turnaround expenses, FIFO adjustments and unrealized gains/losses on energy segment derivatives and certain other non-operational charges. We present EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT on a consolidated basis and attributable to Icahn Enterprises net of the effect of non-controlling interests. We conduct substantially all of our operations through subsidiaries. The operating results of our subsidiaries may not be sufficient to make distributions to us. In addition, our subsidiaries are not obligated to make funds available to us for payment of our indebtedness, payment of distributions on our depositary units or otherwise, and distributions and intercompany transfers from our subsidiaries to us may be restricted by applicable law or covenants contained in debt agreements and other agreements to which these subsidiaries currently may be subject or into which they may enter into in the future. The terms of any borrowings of our subsidiaries or other entities in which we own equity may restrict dividends, distributions or loans to us.

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