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

Fri Mar 15, 2013 7:00am EDT

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* 2012 Net Income Attributable to Icahn Enterprises of $396 million 

* 2012 Full Year Adjusted EBITDA attributable to Icahn Enterprises of $1.5 billion 

* Board Announced Increase of Annual Distribution to $4.00 per depository unit

NEW YORK, March 15, 2013 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (Nasdaq:IEP) is reporting
revenues of $15.7 billion for the year ended December 31, 2012, and net income attributable to
Icahn Enterprises of $396 million, or $3.75 per LP unit. For the full year 2011, revenues were
$11.8 billion and net income attributable to Icahn Enterprises was $750 million, or $8.15 per LP
unit.

For the fourth quarter of 2012, revenues were $4.2 billion and net income attributable to Icahn
Enterprises was $6 million, or $0.06 per LP unit. Fourth quarter results were negatively impacted
by scheduled turnarounds at CVR Energy's Wynnewood refinery and Coffeyville fertilizer plant. For
the fourth quarter of 2011, revenues were $3.2 billion and net income attributable to Icahn
Enterprises was $260 million, or $2.81 per LP unit.

Mr. Icahn stated: "IEP has started the year with very strong results. The indicative net asset
value per IEP unit has increased from $56 per unit on December 31, 2012 to $67 per unit as of
March 13, 2013, an approximate 20% increase over the period.   We are excited about the investment
opportunities we are seeing across our operating segments. All in all, we believe that the future
of IEP is very bright."  Management's calculations of indicative net asset value as of December
31, 2012 and March 13, 2013 are shown at the end of this release.  

Adjusted EBITDA attributable to Icahn Enterprises was $1.5 billion for 2012 compared to $1.5
billion for 2011. For the fourth quarter of 2012, Adjusted EBITDA attributable to Icahn
Enterprises was $0.3 billion compared to $0.5 billion in the fourth quarter of 2011.

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,   December 31,   
                                                                          2012           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.

We believe that providing EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT to investors has
economic substance as these measures provide important supplemental information of our performance
to investors and permits investors and management to evaluate the core operating performance of
our business without regard to interest, taxes and depreciation and amortization and 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. Additionally, we believe this information is frequently used by
securities analysts, investors and other interested parties in the evaluation of companies that
have issued debt. Management uses, and believes that investors benefit from referring to these
non-GAAP financial measures in assessing our operating results, as well as in planning,
forecasting and analyzing future periods. Adjusting earnings for these charges allows investors to
evaluate our performance from period to period, as well as our peers, without the effects of
certain items that may vary depending on accounting methods and the book value of assets.
Additionally, EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT present meaningful measures of
corporate performance exclusive of our capital structure and the method by which assets were
acquired and financed.

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT have limitations as analytical tools, and you
should not consider them in isolation, or as substitutes for analysis of our results as reported
under generally accepted accounting principles in the United States, or U.S. GAAP.  For example,
EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT:

* do not reflect our cash expenditures, or future requirements for capital expenditures, or
contractual commitments;
* do not reflect changes in, or cash requirements for, our working capital needs; and
* do not reflect the significant interest expense, or the cash requirements necessary to service
interest or principal payments on our debt.

Although depreciation and amortization are non-cash charges, the assets being depreciated or
amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not
reflect any cash requirements for such replacements. Other companies in the industries in which we
operate may calculate EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT differently than we do,
limiting their usefulness as comparative measures. In addition, EBITDA, Adjusted EBITDA, EBIT and
Adjusted EBIT do not reflect the impact of earnings or charges resulting from matters we consider
not to be indicative of our ongoing operations.

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT are not measurements of our financial performance
under U.S. GAAP and should not be considered as alternatives to net income or any other
performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from
operating activities as a measure of our liquidity. Given these limitations, we rely primarily on
our U.S. GAAP results and use EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT only as a
supplemental measure of our financial performance.

Use of IndicativeNet Asset Value Data

The Company uses the indicative net asset value of the depository units as an additional method
for considering the value of the units, and we believe that this information can be helpful to
investors. Please note, however, that the indicative net asset value of the units does not
represent the market price at which the units trade. Accordingly, data regarding indicative net
asset value is of limited use and should not be considered in isolation.

The Company's depository units are not redeemable, which means that investors have no right or
ability to obtain from the Company the indicative net asset value of units that they own. Units
may be bought and sold on The NASDAQ Global Select Market at prevailing market prices. Those
prices may be higher or lower than the indicative net asset value of the units as calculated by
Management. 

See below for more information on how we calculate the indicative net asset value of the Company's
depository units.

 ($ in millions)                        Three Months Ended       Twelve Months Ended        
                                        December 31              December 31                
                                        2012        2011        2012         2011         
 Consolidated Adjusted EBITDA:                                                              
 Net income                             $ 66        $ 636       $ 727        $ 1,764      
 Interest expense, net                  135         109         512          436          
 Income tax (benefit) expense           (59)        (21)        (81)         34           
 Depreciation and amortization          157         104         548          410          
 Consolidated EBITDA                    $ 299       $ 828       $ 1,706      $ 2,644      
 Impairment of assets                   42          68          129          71           
 Restructuring costs                    9           2           31           11           
 Non-Service cost US based pensions     12          6           38           25           
 OPEB curtailment gains                 --          (1)         (51)         (1)          
 Unfavorable FIFO impact                13          --          71           --           
 Unrealized (gain)/loss on derivatives  (49)        --          68           --           
 Stock-based compensation               12          1           38           --           
 Major scheduled turnaround expense     94          --          107          --           
 Other                                  20          4           40           --           
 Consolidated Adjusted EBITDA           $ 452       $ 908       $ 2,177      $ 2,750      
                                                                                             
 IEP Adjusted EBITDA:                                                                        
 Net income attributable to IEP         $ 6         $ 260       $ 396        $ 750        
 Interest expense, net                  117         94          456          377          
 Income tax (benefit) expense           (71)        (18)        (128)        27           
 Depreciation and amortization          125         78          434          309          
 EBITDA attributable to IEP             $ 177       $ 414       $ 1,158      $ 1,463      
 Impairment of assets                   38          56          106          58           
 Restructuring costs                    8           2           25           9            
 Non-Service cost US based pensions     9           4           29           18           
 OPEB curtailment gains                 --          (1)         (40)         (1)          
 Unfavorable FIFO impact                11          --          58           --           
 Unrealized (gain)/loss on derivatives  (40)        --          56           --           
 Stock-based compensation               9           --          30           --           
 Major scheduled turnaround expense     77          --          88           --           
 Other                                  16          2           31           --           
 Adjusted EBITDA attributable to IEP    $ 305       $ 477       $ 1,541      $ 1,547      


                                                                                            
 ($ in millions)                        Three Months Ended       Twelve Months Ended        
                                        December 31,             December 31,               
                                        2012        2011        2012         2011         
 Consolidated Adjusted EBIT:                                                                 
 Net income                             $ 66        $ 636       $ 727        $ 1,764      
 Interest expense, net                  135         109         512          436          
 Income tax (benefit) expense           (59)        (21)        (81)         34           
 Consolidated EBIT                      $ 142       $ 724       $ 1,158      $ 2,234      
 Impairment of assets                   42          68          129          71           
 Restructuring costs                    9           2           31           11           
 Non-Service cost US based pensions     12          6           38           25           
 OPEB curtailment gains                 --          (1)         (51)         (1)          
 Favorable FIFO impact                  13          --          71           --           
 Unrealized (gain)/loss on derivatives  (49)        --          68           --           
 Stock-based compensation               12          1           38           --           
 Major scheduled turnaround expense     94          --          107          --           
 Other                                  20          4           40           --           
 Consolidated Adjusted EBIT             $ 295       $ 804       $ 1,629      $ 2,340      
                                                                                             
 IEP Adjusted EBIT:                                                                          
 Net income attributable to IEP         $ 6         $  260      $ 396        $ 750        
 Interest expense, net                  117         94          456          377          
 Income tax (benefit) expense           (71)        (18)        (128)        27           
 EBIT attributable to IEP               $ 52        $ 336       $ 724        $ 1,154      
 Impairment of assets                   38          56          106          58           
 Restructuring costs                    8           2           25           9            
 Non-Service cost US based pensions     9           4           29           18           
 OPEB curtailment gains                 --          (1)         (40)         (1)          
 Favorable FIFO impact                  11          --          58           --           
 Unrealized (gain)/loss on derivatives  (40)        --          56           --           
 Stock-based compensation               9           --          30           --           
 Major scheduled turnaround expense     77          --          88           --           
 Other                                  16          2           31           --           
 Adjusted EBIT attributable to IEP      $ 180       $ 399       $ 1,107      $ 1,238      


                                                                                 
 Indicative Net Asset Value Calculation                                          
                                                                                 
 ($ in millions, except per unit)                     December 31,   March 13,   
                                                      2012           2013        
                                                                                 
 Market-valued Subsidiaries:                                                     
 Holding Company interest in Funds (1)                $2,387         $2,671      
 CVR Energy (2)                                       3,474          3,890       
 CVR Refining (3)                                     ----           130         
 Federal-Mogul (2)                                    615            482         
 American Railcar Industries (2)                      377            545         
 Total market-valued subsidiaries                     $6,853         $7,718      
                                                                                 
 Other Subsidiaries                                                              
 Tropicana (4) (6)                                    $488           $488        
 Viskase (4) (6)                                      268            268         
 Real Estate Holdings (5) (6)                         763            763         
 PSC Metals (5) (6)                                   338            338         
 WestPoint Home (5) (6)                               256            256         
 Total - other subsidiaries                           $2,113         $2,113      
 Add:  Holding Company cash and cash equivalents (7)  1,047          1,537       
 Less: Holding Company debt (8)                       (4,082)        (4,082)     
 Add: Other Holding Company net assets (9)            63             63          
 Indicative Net Asset Value                           $5,993         $7,348      
                                                                                 
 Units Outstanding                                    107.0          110.2       
 Indicative Net Asset Value Per Unit                  $56            $67         
                                                                                 
 Market Price per IEP Unit                            $44.70         $60.58      


Indicative net asset value does not purport to reflect a valuation of IEP. A valuation is a
subjective exercise and indicative net asset value does not consider all elements or consider in
the adequate proportion the elements that would affect IEP. Investors may reasonably differ on
what such elements are and their impact on IEP. No representation or assurance, express or implied
is made as to the accuracy and correctness of indicative net asset value as of these dates or with
respect to any future indicative or prospective results which may vary.

(1) Fair market value of Holding Company's interest in the Funds and Investment segment cash as of
each respective date.

(2) Based on closing share price on each date and the number of shares owned by the Holding
Company.

(3) The Holding Company purchased four million common units of CVRR at the initial public offering
price of $25.00. As of March 13, 2013, CVRR had a closing price of $32.53.

(4) Amounts based on market comparables due to lack of material trading volume. Tropicana valued
at 8.0x Adjusted EBITDA for the twelve months ended December 31, 2012. Viskase valued at 11.0x
Adjusted EBITDA for the twelve months ended December 31, 2012.  

(5) Represents equity attributable to us as of December 31, 2012.

(6) March 31, 2013 values for Other Subsidiaries assume no change from December 31, 2012 value due
to lack of more recent results.

(7) March 13, 2013 cash and cash equivalents have been adjusted from December 31, 2012 to reflect
$100 million investment in CVRR's initial public offering, CVR $5.50 special dividend received on
February 19, 2013, and $198 million of proceeds from our equity offering completed March, 2013.
Such amounts have not been adjusted for other uses and sources of cash since December 31, 2012.

(8) Represents Holding Company debt as of December 31, 2012. Such amounts have not been adjusted
for changes in debt since December 31, 2012.

(9) Represents Holding Company net assets as of December 31, 2012.  Such amounts have not been
adjusted for changes in other net assets since December 31, 2012.

CONTACT: Investor Contacts:
         SungHwan Cho, Chief Financial Officer
         Peter Reck, Chief Accounting Officer
         (212) 702-4300

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