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Fortress affiliate files for $100M IPO

  • Fortress Transportation & Infrastructure Investors, an affiliate of Fortress Investment Group (FIG), has filed to raise $100M in an IPO on the NYSE.
  • Fortress Transportation mainly invests in aviation, offshore energy and shipping containers; its nine-month net profit rose to $14.2M from $2.9M while revenue more than tripled to $12.1M.
  • The company plans to use the proceeds from the listing to acquire new infrastructure assets and for working capital. (S-1)
Comments (6)
  • Lummox
    , contributor
    Comments (105) | Send Message
     
    I'm confused I don't understand the following comment, "nine-month net profit rose to $14.2M from $2.9M while revenue more than tripled to $12.1M". How can you have a net profit greater than income. I always assumed net profit = income (revenue) - expenses. PLEASE EXPLAIN!!!
    5 Jan, 08:13 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    The Statement of Operations shows that they have about $10 mil of "other Income" from "Equity in earnings of unconsolidated entities, net of premium amortization of $80" and "gain on sale of equipment" Adding those categories to the earlier described revenue of $12.1 mil (which really appears to be operating revenue) and subtracting the expenses gets you to the $14.2 net income attributable to partners
    5 Jan, 12:16 PM Reply Like
  • Lummox
    , contributor
    Comments (105) | Send Message
     
    Thanx Mike.

     

    I appreciate the additional information. As for as investing, I prefer companies that don't confusing boolks that lead to further questions. SUCH AS "Equity in earnings of unconsolidated entities, net of premium amortization of $80" and "gain on sale of equipment". That sentence leaves to much room for the Hobgoblins to run Amok.
    13 Jan, 09:20 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    Gain on sale of equipment is a pretty standard line item for a company that invests in shipping equipment, so thats not an issue, as long as its not the sole driver of earnings. The equity in earning of unconsolidated entities, net of premium amortization, on the other hand, needs some further exploration. Idk, I'd wait for a quarter or two of earnings reports before I put cash into this.
    13 Jan, 11:38 PM Reply Like
  • User 17806102
    , contributor
    Comment (1) | Send Message
     
    Is this a good stock to buy?
    5 Jan, 08:22 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    Depends on the pricing. Cant tell from the information provided.
    5 Jan, 08:32 PM Reply Like
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