Lineage Inc

For the period ended Jun 30, 2024. Filed Aug 21, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 21, 2024

LINE$39.66+1.4%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except par values)

	June 30,	December 31,
	2024	2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents	$73	$68
Restricted cash	3	3
Accounts receivable, net	954	913
Inventories	172	171
Prepaid expenses and other current assets	137	101
Total current assets	1,339	1,256
Non-current assets:
Property, plant, and equipment, net	10,491	10,571
Finance lease right-of-use assets, net	1,219	1,243
Operating lease right-of-use assets, net	705	724
Equity method investments	123	113
Goodwill	3,361	3,394
Other intangible assets, net	1,218	1,280
Other assets	300	290
Total assets	$18,756	$18,871
Liabilities, Redeemable Noncontrolling Interests, and Equity
Current liabilities:
Accounts payable and accrued liabilities	$1,088	$1,137
Accrued distributions	11	110
Deferred revenue	84	94
Current portion of long-term debt, net	39	24
Total current liabilities	1,222	1,365
Non-current liabilities:
Long-term finance lease obligations	1,291	1,305
Long-term operating lease obligations	677	692
Deferred income tax liability	351	370
Long-term debt, net	9,302	8,958
Other long-term liabilities	159	159
Total liabilities	13,002	12,849
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests	262	349
Stockholders’ equity:
Common stock, $0.01 par value per share – 500 authorized shares; 162 issued and outstanding at June 30, 2024 and December 31, 2023	2	2
Additional paid-in capital - common stock	5,981	5,961
Series A preferred stock, $0.01 par value per share – 100 authorized shares; less than 1 issued and outstanding shares, with an aggregate liquidation preference of $1 at June 30, 2024 and December 31, 2023	1	1
Retained earnings (accumulated deficit)	(987)	(879)
Accumulated other comprehensive income (loss)	(119)	(34)
Total stockholders’ equity	4,878	5,051
Noncontrolling interests	614	622
Total equity	5,492	5,673
Total liabilities, redeemable noncontrolling interests, and equity	$18,756	$18,871

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in millions, except per share amounts)

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
(unaudited)
Net revenues	$1,338	$1,346	$2,666	$2,679
Cost of operations	891	905	1,775	1,795
General and administrative expense	127	124	251	239
Depreciation expense	164	136	322	265
Amortization expense	55	52	108	104
Acquisition, transaction, and other expense	12	15	20	26
Restructuring, impairment, and (gain) loss on disposals	15	3	15	7
Total operating expense	1,264	1,235	2,491	2,436
Income from operations	74	111	175	243
Other income (expense):
Equity income (loss), net of tax	(1)	—	(3)	—
Gain (loss) on foreign currency transactions, net	2	(3)	(9)	(4)
Interest expense, net	(148)	(116)	(287)	(231)
Gain (loss) on extinguishment of debt	—	—	(7)	—
Total other income (expense), net	(147)	(119)	(306)	(235)
Net income (loss) before income taxes	(73)	(8)	(131)	8
Income tax expense (benefit)	7	—	(3)	(3)
Net income (loss)	(80)	(8)	(128)	11
Less: Net income (loss) attributable to noncontrolling interests	(12)	(3)	(20)	(2)
Net income (loss) attributable to Lineage, Inc.	$(68)	$(5)	$(108)	$13
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on foreign currency hedges and interest rate hedges	(13)	20	(10)	(19)
Foreign currency translation adjustments	(12)	19	(86)	49
Comprehensive income (loss)	(105)	31	(224)	41
Less: Comprehensive income (loss) attributable to noncontrolling interests	(15)	1	(31)	1
Comprehensive income (loss) attributable to Lineage, Inc.	$(90)	$30	$(193)	$40
Basic earnings (loss) per share	$(0.46)	$(0.08)	$(0.73)	$(0.04)
Diluted earnings (loss) per share	$(0.46)	$(0.08)	$(0.73)	$(0.04)
Weighted average common shares outstanding:
Basic	162	162	162	162
Diluted	162	162	162	162

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited)

	Common Stock
	Redeemable noncontrolling interests	Number of shares	Amount at par value	Additional paid-in capital	Series A preferred stock	Retained earnings (accumulated deficit)	Accumulated other comprehensive income (loss)	Noncontrolling interests	Total equity
Balance as of December 31, 2023	$349	162	$2	$5,961	$1	$(879)	$(34)	$622	$5,673
Distributions	(1)	—	—	—	—	—	—	(12)	(12)
Stock-based compensation	—	—	—	3	—	—	—	2	5
Other comprehensive income (loss)	—	—	—	—	—	—	(63)	(8)	(71)
Redemption of redeemable noncontrolling interests	(6)	—	—	—	—	—	—	—	—
Redemption of common stock	—	—	—	(25)	—	—	—	—	(25)
Expiration of redemption option	(92)	—	—	65	—	—	—	27	92
Accretion of redeemable noncontrolling interests	6	—	—	(6)	—	—	—	—	(6)
Net income (loss)	—	—	—	—	—	(40)	—	(8)	(48)
Reallocation of noncontrolling interests	—	—	—	(7)	—	—	—	7	—
Balance as of March 31, 2024	$256	162	$2	$5,991	$1	$(919)	$(97)	$630	$5,608
Common stock issuances, net of equity raise costs	—	—	—	1	—	—	—	—	1
Distributions	—	—	—	—	—	—	—	(12)	(12)
Stock-based compensation	—	—	—	4	—	—	—	2	6
Other comprehensive income (loss)	—	—	—	—	—	—	(22)	(3)	(25)
Redeemable noncontrolling interest adjustment	4	—	—	(4)	—	—	—	—	(4)
Accretion of redeemable noncontrolling interests	2	—	—	(2)	—	—	—	—	(2)
Net income (loss)	—	—	—	—	—	(68)	—	(12)	(80)
Reallocation of noncontrolling interests	—	—	—	(9)	—	—	—	9	—
Balance as of June 30, 2024	$262	162	$2	5,981	$1	$(987)	$(119)	$614	$5,492

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited)

	Common Stock
Redeemable noncontrolling interests · Number of shares · Amount at par value · Additional paid-in capital · Series A preferred stock · Retained earnings (accumulated deficit) · Accumulated other comprehensive income (loss) · Noncontrolling interests · Total equity
Balance as of December 31, 2022	$298		160		$2			$5,915			$1			$(713)			$(37)			$641			$5,809
Common stock issuances, net of equity raise costs		2		—			140			—			—			—			—			140
Contributions from noncontrolling interests					3			—			—			—			2			5
Distributions	—		—		—			—			—			—			—			(12)			(12)
Stock-based compensation		—		—			3			—			—			—			2			5
Other comprehensive income (loss)	—		—		—			—			—			—			(8)			(1)			(9)
Redemption of common stock	—		—		—			(3)			—			—			—			—			(3)
Redemption of units issued as stock compensation	—		—		—			(9)			—			—			—			(1)			(10)
Redeemable noncontrolling interest adjustment	4					(4)			—			—			—			—			(4)
Accretion of redeemable noncontrolling interests	9					(9)			—			—			—			—			(9)
Net income (loss)	—		—		—			—			—			18			—			1			19
Reallocation of noncontrolling interests	—		—		—			(21)			—			—			2			19			—
Balance as of March 31, 2023	$311		162		$2			$6,015			$1			$(695)			$(43)			$651			$5,931
Common stock issuances, net of equity raise costs	—		—		—			2			—			—			—			—			2
Distributions	—		—		—			—			—			—			—			(12)			(12)
Stock-based compensation	—		—		—			4			—			—			—			2			6
Other comprehensive income (loss)	—		—		—			—			—			—			35			4			39
Accretion of redeemable noncontrolling interests	9					(9)			—			—			—			—			(9)
Net income (loss)	—		—		—			—			—			(5)			—			(3)			(8)
Reallocation of noncontrolling interests	—		—		—			(11)			—			—			—			11			—
Balance as of June 30, 2023	$320		162		$2			$6,001			$1			$(700)			$(8)			$653			$5,949

See accompanying notes to condensed consolidated financial statements

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2024	2023
(unaudited)
Cash flows from operating activities:
Net income (loss)	$(128)	$11
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for credit losses	2	2
Impairment of long-lived and intangible assets	29	2
Gain on insurance recovery (see Note 16, Commitments and contingencies)	(23)	—
Depreciation and amortization	430	369
(Gain) loss on extinguishment of debt, net	7	—
Amortization of deferred financing costs and above/below market debt	12	11
Stock-based compensation	11	11
(Gain) loss on foreign currency transactions, net	9	4
Deferred income tax	(24)	(32)
Other operating activities	10	—
Changes in operating assets and liabilities (excluding effects of acquisitions):
Accounts receivable	(18)	13
Prepaid expenses, other assets, and other long-term liabilities	(24)	(36)
Inventories	(3)	(10)
Accounts payable and accrued liabilities and deferred revenue	(37)	(13)
Right-of-use assets and lease obligations	7	4
Net cash provided by operating activities	260	336
Cash flows from investing activities:
Acquisitions, net of cash acquired	(73)	(16)
Deposits on pending acquisitions	—	1
Purchase of property, plant, and equipment	(333)	(428)
Proceeds from sale of assets	5	9
Other investing activity	3	(20)
Net cash used in investing activities	(398)	(454)
Cash flows from financing activities:
Capital contributions, net of equity raise costs	—	142
Distributions to stockholders	(89)	—
Distributions to noncontrolling interests	(34)	(23)
Redemption of redeemable noncontrolling interests	(6)	—
Financing fees	(44)	—
Proceeds from long-term debt	2,481	—
Repayments of long-term debt and finance leases	(3,341)	(48)
Payment of deferred and contingent consideration liabilities	(16)	(33)
Borrowings on revolving line of credit	2,358	479
Repayments on revolving line of credit	(1,127)	(442)
Redemption of units issued as stock compensation	—	(10)
Redemption of common stock	(25)	(3)
Other financing activity	(13)	(8)
Net cash provided by financing activities	144	54
Impact of foreign exchange rates on cash, cash equivalents, and restricted cash	(1)	3
Net increase (decrease) in cash, cash equivalents, and restricted cash	5	(61)
Cash, cash equivalents, and restricted cash at the beginning of the period	71	202
Cash, cash equivalents, and restricted cash at the end of the period	$76	$141

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2024	2023
(unaudited)
Supplemental disclosures of cash flow information:
Cash paid for taxes	$28	$42
Cash paid for interest	$319	$283
Noncash activities:
Purchases of property, plant, and equipment in Accounts payable and accrued liabilities	$87	$58
Accrued distributions to noncontrolling interests	$11	$11
Net deferred and contingent consideration on acquisitions	$—	$3
Noncash capital contribution from noncontrolling interests	$—	$(2)

Table of Contents for Notes to Condensed Consolidated Financial Statements

Note · Page
Note 1	Significant accounting policies and practices	10
Note 2	Capital structure and noncontrolling interests	12
Note 3	Revenue	17
Note 4	Business combinations and asset acquisitions	18
Note 5	Property, plant, and equipment	19
Note 6	Goodwill and other intangible assets, net	20
Note 7	Prepaid expenses and other current assets	20
Note 8	Income taxes	20
Note 9	Debt	21
Note 10	Derivative instruments and hedging activities	24
Note 11	Interest expense	27
Note 12	Fair value measurements	27
Note 13	Leases	29
Note 14	Stock-based compensation	30
Note 15	Related-party balances	32
Note 16	Commitments and contingencies	33
Note 17	Accumulated other comprehensive income (loss)	35
Note 18	Earnings (loss) per share	35
Note 19	Segment information	37
Note 20	Subsequent events	38

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.