Icahn Enterprises Q3 2024 Earnings Report

Icahn Enterprises EPS Results

• Actual EPS: $0.05
• Consensus EPS: $0.21
• Beat/Miss: Missed by -$0.16
• One Year Ago EPS: -$0.01

Icahn Enterprises Revenue Results

• Actual Revenue: $2.79 billion
• Expected Revenue: $2.32 billion
• Beat/Miss: Beat by +$474.00 million
• YoY Revenue Growth: N/A

Icahn Enterprises Announcement Details

• Quarter: Q3 2024
• Date: 11/8/2024
• Time: Before Market Opens
• Conference Call Date: Friday, November 8, 2024
• Conference Call Time: 10:00AM ET

Icahn Enterprises (NASDAQ:IEP), through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

Icahn Enterprises Q3 2024 Earnings Call Transcript

Key Takeaways

• Net asset value fell by $423 million from Q2 2024, as positive 8% investment fund returns were more than offset by declines at CVR Energy, a unitholder distribution and underperformance in Automotive Services.
• The investment funds delivered approximately 8% quarterly gains, led by healthcare longs and refining hedes, while broad market hedges limited overall performance.
• CVR Energy’s Q3 performance suffered from mid-cycle crack spreads and external power outages, prompting a paused dividend and a tender offer to acquire additional shares in support of a valued turnaround.
• Automotive Services revenues declined due to staffing and inventory missteps, but recent management changes have already driven improving trends toward the long-term goal of high single-digit to double-digit EBITDA margins.
• Icahn Enterprises maintains a strong liquidity position with $1.6 billion at the holding company and $800 million at the funds, and the quarterly distribution was cut from $1.00 to $0.50 to preserve capital for opportunistic investments.

Presentation

[Operator]

Good morning, and welcome to Icahn Enterprise LP Third Quarter 20 24 Earnings Call with Andrew Tino, President and CEO Ted Papapatoglou, Chief Financial Officer and Robert Flint, Chief Accounting Officer. I would now like to hand the call over to Robert Flint, who will read the opening statement.

[Robert Flint, Chief Accounting Officer & Principal Accounting Officer at Icahn Enterprises]

Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. 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, LP and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors. Accordingly, there is no assurance that our expectations will be realized.

[Robert Flint, Chief Accounting Officer & Principal Accounting Officer at Icahn Enterprises]

We assume no obligation to update or revise any forward looking statements should circumstances change except as otherwise required by law. This presentation also includes certain non GAAP financial measures, including adjusted EBITDA. A reconciliation of such non GAAP financial measures to the most directly comparable GAAP financial measures can be found on the back of this presentation. We also present indicative net asset value. Indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our GAAP earnings.

[Robert Flint, Chief Accounting Officer & Principal Accounting Officer at Icahn Enterprises]

All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises unless otherwise specified. I'll now turn it over to Andrew Tino, our Chief Executive Officer.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Thank you, Rob, and good morning, everyone. NAV decreased $423,000,000 from the Q2 of 2024. Positive returns in the investment fund were more than offset by declines in CVR Energy, disappointing performance from auto service and the impact of the quarter's distribution to unitholders. So first, the good news. The investment funds were up approximately 8% for the quarter.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

We generated positive returns from our single name longs led by our healthcare investments and our refining hedges and generated significant interest income. Our losses were predominantly caused by our broad market hedges and we avoided any big single name losses. Moving on to the not so good. Our CVR investment was down during the quarter as cracks returned to levels that are either mid cycle to below mid cycle levels, further compounded by uncontrollable external power outages. In regards to our Automotive Services division, it has unfortunately continued to struggle.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

The quarter suffered from lower than expected revenue driven by staffing and inventory management decisions. We have already replaced several top members of management at Pep Boys and can already see a return to better performance. Though we see green shoots, it will be a while until our auto service division will hit its potential. I continue to believe that over a multiyear time period, there is no reason that EBITDA margins shouldn't be in the high single digits, if not double digits versus the low single digits today. We ended the quarter with $1,600,000,000 of cash and cash equivalents at the holding company and an additional $800,000,000 of cash at the funds.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

So as Carl likes to say, we have a significant war chest to take advantage of opportunities as they arise. As many people on this call likely know, subsequent to the quarter end, the refining market continued to soften, which led CVR to pause its dividend. Since the inception of our CVR investment in 20, 2012, IEP has received dividends totaling over $3,000,000,000 We believe that sooner or later, and unfortunately we don't know when, the cycle will swing again and CVR will return to generating significant cash flow. It is this belief that has led us to announce a proposed tender offer to buy additional CVR shares. Given the recently launched tender for CVR, additional investment opportunities both in our portfolio and in the market and a desire to maintain our cash war chest, the Board has reduced the quarterly distribution from $1 per depository unit to $0.50 We know that some unitholders may be disappointed by the decision, but as Carl mentioned in our press release, 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.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Now turning to our Investment segment. In terms of our top five disclosed names, we see considerable value creation potential. At SWICs, we see a gas utility that is closing its ROE gap to peers and separating the utility services business with significant growth opportunity. We see upside in both the gas utility and the service business. At AEP, we see new management closing its ROE gap, improving regulatory outcomes and benefiting from tremendous growth in electricity demand due to AI driven data center demand.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

IFF is a high quality ingredients company that should see improving organic revenue growth and increasing margins from new We believe We believe we are buying a great business with tremendous asset value, a great management team that is actively buying back shares and with a growing digital business at a free cash flow yield greater than 15%. At Bausch, we see considerable value both at BHC and BLCO. The fund ended the quarter approximately 2% net short. Adjusting for our refining hedges, the fund was 24% net long. And now I will pass it on to Ted to cover our controlled businesses.

[Ted Papapostolou, CFO at Icahn Enterprises]

Thank you, Andrew. I will begin with our Energy segment. Energy segment EBITDA was negative $38,000,000 for Q3 2024 compared to $347,000,000 in Q3 2023. The quarter's performance was impacted by unplanned downtime caused by external power outages resulting in lower volumes and margins. Q3, twenty twenty four refining margin per throughput barrel was $2.53 compared to $31.05 in the prior year quarter.

[Ted Papapostolou, CFO at Icahn Enterprises]

This decrease was primarily driven by a decrease in crack spreads, unfavorable impact of the mark to market on the outstanding RFS obligation and unfavorable inventory valuation impact. Q3 2024 average realized gate prices for UAN increased by 3% to $2.29 per tonne and ammonia increased by 9% to $3.99 per tonne when compared to the prior year quarter. Now turning to our Auto segment. Q3 2024 net sales and other revenues decreased by $70,000,000 compared to the prior year quarter. Automotive services revenues decreased by $51,000,000 due to operational challenges such as insufficient tire inventory and staffing levels at certain locations and reduced consumer spending on automotive repairs and maintenance. We have swiftly taken actions to address the operational challenges, including a change in management, and we have already seen signs of improvement.

[Ted Papapostolou, CFO at Icahn Enterprises]

Aftermarket parts revenues decreased by $20,000,000 due to the winding down of the business, which is expected to be complete by the end of this year. Now turning to our other segments. Real Estate's Q3 2024 Adjusted EBITDA decreased by $10,000,000 compared to the prior year quarter, driven by the sale of an investment property during Q3 2023, which accounted for $6,000,000 The remaining decrease is mainly due to reduced sales on single family homes. The segment owns a desirable 45 acre site in Nashville, Tennessee, which is located close to the planned NFL stadium in the emerging East River District. We are exploring the sale of this land and if successful, we believe to have proceeds which far exceed the current book value.

[Ted Papapostolou, CFO at Icahn Enterprises]

Food Packaging adjusted EBITDA decreased by $6,000,000 for Q3 2024 as compared to the prior year quarter. Volumes have increased, however, a shift in product mix and lower pricing led to a reduction in net sales. While there are opportunities to improve efficiency at the plants, we do not expect a meaningful impact until we execute a capital plan to modernize the equipment and reduce the overall cost structure. Home Fashion's adjusted EBITDA decreased by $1,000,000 as compared to the prior year quarter, mainly driven by lower demand from our international business and our ecom business offset in part by strong U. S.

[Ted Papapostolou, CFO at Icahn Enterprises]

Hospitality market. Pharma segment adjusted EBITDA for Q3 2024 improved by $2,000,000 as compared to the prior year quarter mainly due to higher prescription growth. Recently, one of our developmental therapies cleared a significant milestone and we're working with the management team to assess the next phase, which has the potential for meaningful returns. Now to our liquidity. We maintain liquidity at the holding company and at each of our operating subsidiaries to take advantage of attractive opportunities.

[Ted Papapostolou, CFO at Icahn Enterprises]

As of quarter end, the holding company had cash and investment in the funds of $4,300,000,000 and our subsidiaries had cash and revolver availability of $1,100,000,000 In summary, we continue to focus on building asset value and maintaining liquidity to enable us to capitalize on opportunities within and outside our existing operating segments. Thank you. Operator, can you please open up the call for questions?

[Operator]

Thank you. And our first question will come from Dan Fannon with Jefferies. Your line is now open.

[Daniel Fannon, Managing Director - Research Analyst at Jefferies]

Thanks. Good morning. Just want to talk about the dividend liquidity and obviously the CVR discussion. So just how at the IEP level are you looking to manage the overall liquidity to kind of come up with the dividend level versus maintaining the flexibilities you talked about for new investments as well as obviously running the business? So just what is the kind of optimal level of liquidity you're looking to run with and or leverage as you think about it at the company?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Hey, Dan. Good morning. So, first off, I'll just say, we have a significant war chest of liquidity. If you look at IEP, we have call it $1,500,000,000 to $1,600,000,000 of cash at the holding company. We have $800,000,000 of cash or so at the hedge funds.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

And so we pertain significant liquidity, whether we want to make wherever we want to make investments. Now when we think about the CBI tender decision, look, we think it's just an attractive investment. We've generated significant cash over time, something like $3,000,000,000 in dividends. And we think at some point, the crack cycle will swing and it will go back to making significant cash change. Unfortunately, we can't really promise you when that will happen, but we think the decisions we made today will actually help cash flow in the future.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

I'd also point out, we have not only do we have the $1,600,000,000 of cash at the holding company, the $800,000,000 of the funds, but we're always looking at our assets. And so Ted mentioned a little bit in his comments and he said, we have, call it, some acreage that's in Nashville. So a while back, we owned a segment called PSC Metals. We sold the business. We retained the land.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

It was a very good decision. And you have an asset on our books today for call it something like $25,000,000 And there have been press reports out there that said we're exploring a sale and some people think it could be it could go for north of 10 times that, right? So between the cash, between the undervalued assets that we have in our portfolio and look, it's our job to prove that out that we think we'll have plenty of liquidity to come.

[Daniel Fannon, Managing Director - Research Analyst at Jefferies]

Understood. And then just on the auto business, you mentioned kind of another round of restructuring. So did that actually happen in the Q3? Is that subsequent to the Q4 where you talked about some of the management changes and seeing improvements? Or is that something that's and also just how quickly do you think we can see some of those changes actually come through?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Yes. So a lot of the changes happened, I think Ted, it was right around quarter end. At the end of the quarter, yes. Yes. So it's right around quarter end.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

And the individual who's now running the organization, we've seen significant changes already. So the trends in the quarter, as you went through the quarter, it got worse and worse. And as soon as we made a change, we've seen kind of the trends improve now. Look, it's not we're not seeing what we should be, right? What we should be seeing eventually is same store sales growth.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

We should be seeing margin improvement. We're not seeing that, but we are seeing quite a significant reversal, right. So I think there were times we were seeing revenue minus 20% year over year and that's declined. Now we're seeing some high single digits. So, we're already seeing an improvement.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

And I'd say, look, some of the obviously, the business didn't do well in the quarter, but there were good ideas that were some of the initiatives that were being worked on were good ideas. They were just poorly executed, right? So it is a good idea to run an RFP to purchase tires cheaper, so we can make more money when we sell them to our customers. It's a bad idea to run out of inventory, so that when your customers show up, there's nothing to sell them or you say, hey, it's going to be a week when they can just go across the street and it's going to take them a day. So good ideas, bad execution and now it's up to us to execute and turn it around.

[Daniel Fannon, Managing Director - Research Analyst at Jefferies]

Understood. And then just a question on the investment fund given the change in the White House and as you look at the portfolio today and its construct as well as both the long positions you highlighted as well as the kind of hedges. Any changes to how you're thinking about the mix or the overall net exposure given what has transpired this past week?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

I'd say not too many changes in terms of the hedge book, but it is nice to be able to rely and use the M and A tool a bit more, right. So things that were off the table maybe won't be off the table. I think there was an article not too long ago in the I think it was a journal, right, where they were highlighting that activists were replacing CEOs as the primary tool to improve the business and moving away from M and A. And I think this change in administration hopefully will give us more options to push for, more ways to make money. And it's also nice to have, I think a bunch of our businesses or at least if you look at CBI, and I think the Trump administration will be much more favorable towards refining than the prior.

[Daniel Fannon, Managing Director - Research Analyst at Jefferies]

Got it. And then just last one, just on the dividend and the outlook as you think about the change today with also the proposals around CBI and others and knowing that you can't predict when the dividend at CVR is coming back? Like is that like what is contemplated as we think about the go forward in terms of sustainability of the current dividend here versus what's coming off of the business and the liquidity overall?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Yes. Look, I think it comes back to the same thing we've been discussing, which is we evaluate it every quarter. Clearly, it's been an important part of our story in the past, but it's something we evaluate all the time. I think if we are right and that our the assets that we own are attractive, they're undervalued and we can do important things to unlock that, then we'll probably continue to stick to our knitting.

[Daniel Fannon, Managing Director - Research Analyst at Jefferies]

Great. Thanks for taking my questions.

[Operator]

And our next question comes from Andrew Byrd with Post Advisory Group. Your line is open.

[Andrew Berg, Managing Director at Post Advisory Group]

Hi, thank you. If we go back to automotive real quickly, was it just a change in the CEO spot or were there other management changes and if so, which changes were done?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Yes. I think there were a few changes that were made. The CEO and the CFO have changed. There were some others as well. I would just say that the changes the other changes that were made were for people to do, I'd say rather than having mid level management or senior level management is more to have more people doing the actual work, getting back to basics to improve the core business. Okay.

[Andrew Berg, Managing Director at Post Advisory Group]

When you're looking at food, you had mentioned the need for CapEx there to modernize the facility. How much CapEx do you think needs to be invested there to get it to a level that you guys would be happy with?

[Ted Papapostolou, CFO at Icahn Enterprises]

It's too early to spit out a number. So management is working on a capital plan, but it is apparent that we need to bring cost out of the P and L to increase the bottom line. So they've been working on that for the past few quarters. I'm expecting to have an update on the next call to see how much of an outlay, the timeframe and get more into the nitty gritty of the details.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Look, there are we look at it as a variety of options, kind of stages. And from the IEP level, it's an immaterial amount.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay. And given that last comment, it sounds like any needs they would have would be something then they could just be financed and handled at that subsidiary level and wouldn't require any downstream of cash or equity investment from you guys. Or if it was, it wouldn't be notable.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

I think, this case is a certain size, we're a certain size. And so we just evaluate each capital structure and figure out the best decision for each business.

[Ted Papapostolou, CFO at Icahn Enterprises]

Yes. And I think timing would have a big impact on that, whether we can stretch it out or speed it up. So I think getting the plan would be we'd be able to answer the question appropriately, but it's not going to be a big outlay for IEP.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay. Just wanted to confirm that. And then can you help me reconcile the holdings in the investment funds? You noted that the performance was up and up nicely ex the hedge you had on. But the value that's shown on Slide 11 is down a little bit, which suggests to know there was distributions that came out of that.

[Andrew Berg, Managing Director at Post Advisory Group]

And I think the number was probably around 500, but I just want to make sure I'm understanding the math and the movements there.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Yes. So there was a distribution during the quarter. And so you'd see a movement from the investment funds into the IEP holding company cash. And then we'd use that cash for it goes into a big bucket and we use it as we did in the quarter. So you'd see some bond repurchases that were there.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

That'd probably be one of the bigger uses of cash during the quarter.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay. And the repurchases that I'm just trying to recall, was that for maturity or were you buying bonds in the open market?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

There were some repurchases in the open market. So if you look on that bottom row or you look at the unsecured debt balance, you could see that it ticked down.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay, great. And then lastly, with respect to the dividend, I think that Carl had elected to take some in cash in the recent past, but historically have been taking more of it in stock. Given the reduction and given the desire to use the company's capital to help fund the CVR investment, is he going to switch back to taking it predominantly or entirely in stock versus cash going forward?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Yes. So that's a decision for Carl. He has the same decision that all the other shareholders have.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay. And he hasn't communicated things either way on that or doesn't want to say?

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

No, he's not.

[Andrew Berg, Managing Director at Post Advisory Group]

Okay. Thanks guys.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

You got it.

[Operator]

And our next question comes from Bruce Monrad with Northeast Investors Trust. Your line is open.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Hi guys. Thanks for hosting the call. Question on food packaging, if I could. So in May, at the annual meeting of this case, you guys said or your management said that budget for 2024 was for EBITDA profitability to be higher than that in 2023. And so my question is, what changed so suddenly here?

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

What did you what didn't you know then that you learned subsequent? Can you help me on that? And I'll follow-up.

[Ted Papapostolou, CFO at Icahn Enterprises]

Yes. Just to give more context what happened this quarter is, as I mentioned, volume was up compared to the prior year period, but the mix of product we're selling was at a lower margin and then there's price, which let me touch on price. As I mentioned in previous calls, the supply chain has stabilized. And what that's done for the industry is it brought back the price competitiveness to what I call pre pandemic levels when things were more normalized. So that layer in the higher waste that we have as compared to historical periods and that all affects the bottom line.

[Ted Papapostolou, CFO at Icahn Enterprises]

And there is some upside in tackling the waste and management has initiatives to do so. But like I mentioned in the previous question, the biggest impact we see to improve 2025 and beyond would be a capital plan to take further costs out of the P and L.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Well, so are you correct? I mean, so Viscopan sort of patting itself on the back and saying that the destocking is done, but demand has normalized. But on Osceola, I'm a little surprised that the that hasn't been straightened out by now. It sort of sprung out of nowhere 24 to 36 months ago. I remember talking 24 months ago with Dave Willets on this call, and he said it would be 2 to 3 quarters.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Why is that this proving so intractable? What's going on there? Why and why is this a surprise? Why do we need to default to a capital plan? Isn't this something that should be able to be fixed in house? David, what's changed here?

[Ted Papapostolou, CFO at Icahn Enterprises]

The waste has many elements to it, but one of them is the old machinery. So a lot of we're doing a lot of the planned maintenance, but as these things age out, we're seeing that we probably have to adjust the planned maintenance and it's costing more and more to maintain them. And even with so, they go down unexpectedly, which is causing waste. So part of this capital plan would be to modernize the equipment and that would alleviate that aspect of it. But there's many elements to the waste that management has been firefighting.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

And with regard to waste, with regard to this, what again, what was the epiphany that occurred in the summer that you didn't that we didn't know about, management didn't know about in May when we were guided higher?

[Ted Papapostolou, CFO at Icahn Enterprises]

It's really just the pricing competitiveness, I would say, and the mix of business. They were budgeting for a better mix and that didn't come to fruition.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Okay. And is the mix issue, is that mostly U. S. Or is that Europe would you say, the change in that?

[Ted Papapostolou, CFO at Icahn Enterprises]

It's throughout every region, mostly in Europe.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Okay. So and if the mix then the and if I look at if I went back to your 10 ks for Greater 23, The region that was suffering for profitability was really the U. S, if I've got it right. So what is the structural issue there that's not getting resolved? Are your competitors, I'm thinking, is Kale North America having I mean, they don't have new shiny plants. Are they suffering or

[Ted Papapostolou, CFO at Icahn Enterprises]

Sorry to cut you off, but we could set up a call to go through more detail of this case at a future time.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Okay. Can I just ask one more, which is just to say, do you think the industry would benefit from consolidation? And then I'll let you go.

[Ted Papapostolou, CFO at Icahn Enterprises]

Could hurt. Yes, not just this case. Yes, throughout our portfolio, we look at opportunities and couldn't hurt, but there's nothing that we see right now that makes sense.

[Bruce Monrad, Portfolio Manager at Northeast Investors Trust]

Okay. All right. Thank you. Thank you all. Thank you.

[Ted Papapostolou, CFO at Icahn Enterprises]

Thanks, Rich.

[Operator]

I show no further questions at this time. I would now like to turn the call back to Andrew Tino for closing remarks.

[Andrew Teno, Chief Executive Officer at Icahn Enterprises]

Thank you everyone for joining this morning's call. Just leave you with some final comments, which is we think it's an active and attractive environment for activism in today's markets. We think we have an underappreciated portfolio. It's our job to kind of prove out that value to you. And we have a war chest of cash and liquidity to go ahead and take advantage of it. So we'll speak soon. Thank you. Bye.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Robert Flint, Chief Accounting Officer & Principal Accounting Officer
• Andrew Teno, Chief Executive Officer
• Ted Papapostolou, CFO

Analysts

• Daniel Fannon, Managing Director - Research Analyst at Jefferies
• Andrew Berg, Managing Director at Post Advisory Group
• Bruce Monrad, Portfolio Manager at Northeast Investors Trust