Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
On October 4, 2005, the Company filed an amended current report on Form 8-K/A with respect to the completion on August 12, 2005 of its acquisition, through a wholly-owned subsidiary, of 100% of the membership interests in Eagle Aviation Resources, Ltd., a Nevada limited liability company doing business as Las Vegas Executive Air Terminal (“LVE”). LVE is an established fixed base operation, operating out of McCarran International Airport in Las Vegas, Nevada under the terms of a 30 year lease granted in 1996. The audited financial statements and unaudited interim financial information required in compliance with Rule 3-05 of Regulation S-X, and the pro forma financial information required in compliance with Article 11 of Regulation S-X, were disclosed in that filing.
On May 16, 2006, the Company filed an amended current report on Form 8-K/A with respect to the completion on May 1, 2006 of its acquisition, through a wholly-owned subsidiary, of 50% of the shares of IMTT Holdings Inc., formerly known as Loving Enterprises, Inc. (“IMTT Holdings”). IMTT Holdings is the ultimate holding company for a group of companies and partnerships that own a bulk liquid storage terminal business operating as International-Matex Tank Terminals (“IMTT”). The audited financial statements and unaudited interim financial information required in compliance with Rule 3-05 of Regulation S-X, and the pro forma financial information required in compliance with Article 11 of Regulation S-X, were disclosed in that filing.
On June 26, 2006, the Company filed an amended current report on Form 8-K/A with respect to the completion on June 7, 2006 of its acquisition, through a wholly-owned subsidiary, of K-1 HGC Investment, L.L.C. (subsequently renamed Macquarie HGC Investment LLC) (“MHGI”), which owns HGC Holdings, L.L.C. (subsequently renamed HGC Holdings LLC) (“HGC”) and The Gas Company, LLC (“TGC”). MHGI, together with its wholly owned subsidiary, HGC Investment Corporation, are the sole members of HGC, and HGC is the sole member of TGC. TGC is a Hawaii limited liability company that owns and operates the regulated synthetic natural gas distribution business in Hawaii and distributes and sells liquefied petroleum gas through unregulated operations. The audited financial statements and unaudited interim financial information required in compliance with Rule 3-05 of Regulation S-X, and the pro forma financial information required in compliance with Article 11 of Regulation S-X, were disclosed in that filing.
On August 22, 2006, the Company filed a current report on Form 8-K with respect to the sale, through its wholly-owned subsidiary Communications Infrastructure LLC, of 16,517,413 stapled securities of Macquarie Communications Infrastructure Group (ASX: MCG) (“MCG”).
The following unaudited pro forma condensed combined balance sheet as of June 30, 2006 gives effect to our dispositions of stapled securities of MCG, Macquarie Yorkshire Limited (“MYL”) and our interest in Macquarie Luxembourg Water S.a.r.L (“SEW”) as if the dispositions had been completed as of June 30, 2006.
The following unaudited pro forma condensed combined balance sheet as of June 30, 2006 gives effect to our dispositions of stapled securities of MCG, Macquarie Yorkshire Limited (“MYL”) and our interest in Macquarie Luxembourg Water S.a.r.L (“SEW”) as if the dispositions had been completed as of June 30, 2006.
The following unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2006 and the year ended December 31, 2005 give effect to the acquisitions of LVE, IMTT and TGC as if these transactions had occurred on January 1, 2005, and the dispositions of MCG stapled securities, MYL and SEW as if these transactions had occurred on December 31, 2004. Certain reclassifications were made to the historical financial statements to conform to the current presentation.
We have included pro forma earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, as we consider it to be an important measure of our overall performance. We believe EBITDA provides additional insight into the performance of our operating companies and our ability to service our obligations and support our ongoing dividend policy.
MACQUARIE INFRASTRUCTURE COMPANY TRUST
CONDENSED COMBINED PRO FORMA BALANCE SHEET
As of MARCH 31, 2006
($ in thousands)
CONDENSED COMBINED PRO FORMA BALANCE SHEET
As of MARCH 31, 2006
($ in thousands)
As of March 31, 2006 | ||||||||||||||||||||
Pro-forma | Pro-forma | |||||||||||||||||||
MIC | TGC | Adjustments | Combined | |||||||||||||||||
Assets: | ||||||||||||||||||||
Current Assets | $ | 169,739 | $ | 52,713 | $ | (86,167 | ) | A | $ | 136,285 | ||||||||||
Property, equipment, land & leasehold improvements, net | 334,094 | 120,682 | 2,807 | B | 457,583 | |||||||||||||||
Restricted cash | 19,516 | — | 4,100 | C | 23,616 | |||||||||||||||
Equipment lease receivables | 42,999 | — | — | 42,999 | ||||||||||||||||
Investment in unconsolidated business | 70,409 | — | 359,938 | D | 430,347 | |||||||||||||||
Investment, at cost | 35,716 | 11,856 | (11,856 | ) | E | 35,716 | ||||||||||||||
Securities, available for sale | 69,233 | — | — | 69,233 | ||||||||||||||||
Related party subordinated loan | 19,492 | — | — | 19,492 | ||||||||||||||||
Goodwill | 281,809 | — | 113,898 | F | 395,707 | |||||||||||||||
Intangible assets, net | 296,041 | — | 18,250 | G | 314,291 | |||||||||||||||
Other | 46,812 | 2,337 | (11,647 | ) | H | 37,502 | ||||||||||||||
Total assets | $ | 1,385,860 | $ | 187,588 | $ | 389,322 | $ | 1,962,770 | ||||||||||||
Liabilities and Shareholders’ Equity (Deficit): | ||||||||||||||||||||
Current liabilities | $ | 57,704 | $ | 17,397 | $ | (2 | ) | I | $ | 75,099 | ||||||||||
Capital leases and notes payable, net of current portion | 3,607 | — | — | 3,607 | ||||||||||||||||
Long term debt, net of current portion | 610,811 | 72,593 | 363,079 | J | 1,046,483 | |||||||||||||||
Related party long-term debt | 18,714 | — | — | 18,714 | ||||||||||||||||
Deferred income taxes | 112,940 | 8,616 | 108,517 | K | 230,073 | |||||||||||||||
Other liabilities | 10,223 | 8,030 | (1,320 | ) | L | 16,933 | ||||||||||||||
Total liabilities | 813,999 | 106,636 | 470,274 | 1,390,909 | ||||||||||||||||
Minority interest | 8,883 | 81 | (81 | ) | M | 8,883 | ||||||||||||||
Shareholders’ equity | 562,978 | 80,871 | (80,871 | ) | N | 562,978 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,385,860 | $ | 187,588 | $ | 389,322 | $ | 1,962,770 | ||||||||||||
The accompanying notes are an integral part of these unaudited proforma condensed combined financial statements.
A | Current Assets | |||||||
Reflects the acquisition of IMTT by the Company for a cash purchase price of $250.0 million plus acquisition costs of $7.0 million for a total aggregate purchase price of $257.0 million. A portion of the purchase price was funded by borrowings ($175.0 million) | $ | (82,000 | ) | |||||
Reflects the increase in cash held upon TGC acquisition as a result a million draw down on the Dresdner Working Capital facility, net of certain costs. | $ | 1,835 | ||||||
Escrow Account for TGC’s FAC Adjustment as required by HPUC Transfer Consent | $ | 4,500 | ||||||
Settlement of K1 Intercompany Loan to TGC | $ | (10,502 | ) | |||||
$ | (86,167 | ) | ||||||
B | Property, equipment, land & leasehold improvements, net | |||||||
Reflects the increase to fair value of TGC’s net assets acquired in excess of purchase price | $ | 2,807 | ||||||
C | Restricted cash | |||||||
Reflects Escrow Account established for TGC Customer Appreciation reserve as required by HPUC Transfer Consent | $ | 4,100 | ||||||
D | Investment in unconsolidated business | |||||||
Reflects the purchase price of $257.0 million plus a gross up for deferred tax liability of $102.9 million for the acquisition of IMTT. The deferred tax liability represents the tax effect of the Company’s share of the excess of fair value of the assets over the acquired tax basis | $ | 359,938 | ||||||
E | Investment, at cost | |||||||
Reflects adjustment for investment that was not acquired through the TGC acquisition | $ | (11,856 | ) | |||||
F | Goodwill | |||||||
Reflects the purchase price paid for TGC in excess of the fair value of net assets acquired. | $ | 113,898 | ||||||
G | Intangible assets, net | |||||||
Reflects the TGC’s fair value of trademarks, customer contracts and non-regulated work force contracts | $ | 18,250 | ||||||
H | Other | |||||||
Reflects adjustment for credit revolver, note payable and pension assets not acquired from TGC | $ | (1,863 | ) | |||||
Reflects deferred financing charges incurred as part of the TGC acquisition | $ | 2,730 | ||||||
Reflects payment of deposit for TGC acquisition | $ | (12,514 | ) | |||||
$ | (11,647 | ) | ||||||
I | Current liabilities | |||||||
Reflects settlement of K1 Intercompany Loan to TGC | $ | (2 | ) | |||||
J | Long term debt, net of current portion | |||||||
Reflects the increase in the Company’s borrowings as a result of the IMTT purchase | $ | 175,000 | ||||||
Reflects the net increase in the Company’s borrowings as a result of the TGC purchase | $ | 188,079 | ||||||
$ | 363,079 | |||||||
K | Deferred income taxes | |||||||
Reflects the increase in deferred income tax liability as a result of our share of the excess of fair value of the IMTT assets over the acquired tax basis. | $ | 102,938 | ||||||
Reflects the net increase in TGC deferred income tax liability as a result of purchase accounting adjustments. | $ | 5,579 | ||||||
$ | 108,517 |
L | Other liabilities | |||||||
Reduction TGC of Pension Liability in accordance with March 31, 2006 actuarial report | $ | (1,320 | ) | |||||
M | Minority interest | |||||||
Reflects removal of minority interests as these were not acquired through the TGC acquisition | $ | (81 | ) | |||||
N | Shareholders’ equity | |||||||
Reflects the elimination of TGC’s historical members’ equity | $ | (80,871 | ) |
MACQUARIE INFRASTRUCTURE COMPANY TRUST
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the quarter ended March 31, 2006
($ in thousands, except per share data)
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the quarter ended March 31, 2006
($ in thousands, except per share data)
For the Quarter Ended March 31, 2006 | ||||||||||||||||||||
Pro-forma | Pro-forma | |||||||||||||||||||
MIC | IMTT | TGC | Adjustments | Combined | ||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Product revenue | $ | 41,992 | $ | — | $ | 41,210 | $ | — | $ | 83,202 | ||||||||||
Service revenue | 42,904 | — | — | — | 42,904 | |||||||||||||||
Lease income | 1,298 | — | — | — | 1,298 | |||||||||||||||
Total revenue | 86,194 | — | 41,210 | — | 127,404 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Cost of revenue — product | (25,269 | ) | — | (22,876 | ) | — | (48,145 | ) | ||||||||||||
Cost of revenue — service (a) | (21,032 | ) | — | — | — | (21,032 | ) | |||||||||||||
Gross profit | 39,893 | — | 18,334 | — | 58,227 | |||||||||||||||
Selling, general & administrative expense | (23,950 | ) | — | (10,987 | ) | — | (34,937 | ) | ||||||||||||
Management fees | (6,478 | ) | — | — | — | (6,478 | ) | |||||||||||||
Depreciation | (1,710 | ) | — | (1,368 | ) | (77 | ) (1) | (3,155 | ) | |||||||||||
Amortization | (3,446 | ) | — | — | (284 | ) (2) | (3,730 | ) | ||||||||||||
Operating income (loss) | 4,309 | — | 5,979 | (360 | ) | 9,928 | ||||||||||||||
Interest income | 1,702 | — | — | — | 1,702 | |||||||||||||||
Dividend income | 2,651 | — | — | — | 2,651 | |||||||||||||||
Interest expense | (15,663 | ) | — | (1,211 | ) | (5,308 | ) (3) | (22,182 | ) | |||||||||||
Equity in earnings of unconsolidated subsidiary | 2,453 | 2,406 | — | (1,164 | ) (4) | 3,695 | ||||||||||||||
Unrealized gain on derivative instruments | 13,675 | — | — | — | 13,675 | |||||||||||||||
Other income (expense) | (167 | ) | — | 142 | — | (25 | ) | |||||||||||||
Income (loss) from continuing operations before income tax | 8,960 | 2,406 | 4,910 | (6,832 | ) | 9,444 | ||||||||||||||
Income tax (expense) benefit | (1,393 | ) | — | (1,900 | ) | 2,781 | (5) | (512 | ) | |||||||||||
Minority interests | (6 | ) | — | (5 | ) | 5 | (6) | (6 | ) | |||||||||||
Income (loss) from continuing operations | $ | 7,561 | $ | 2,406 | $ | 3,005 | $ | (4,046 | ) | $ | 8,926 | |||||||||
Basic and diluted earnings per share | $ | 0.28 | $ | 0.33 | ||||||||||||||||
Weighted number of shares of trust stock outstanding — basic | 27,050,745 | 27,050,745 | ||||||||||||||||||
Weighted number of shares of trust stock outstanding — diluted | 27,066,618 | 27,066,618 | ||||||||||||||||||
(a) Includes depreciation expense of $2.3 million | ||||||||||||||||||||
Reconciliation of profit from continuing operations to EBITDA: | ||||||||||||||||||||
Income (loss) from continuing operations | 7,561 | 2,406 | 3,005 | (4,046 | ) | 8,926 | ||||||||||||||
Interest expense, net of interest income | 13,961 | — | 1,211 | 5,308 | 20,480 | |||||||||||||||
Income tax expense (benefit) | 1,393 | — | 1,900 | (2,781 | ) | 512 | ||||||||||||||
Depreciation | 3,998 | 1,368 | 77 | 5,443 | ||||||||||||||||
Amortization | 3,446 | — | — | 284 | 3,730 | |||||||||||||||
EBITDA | 30,359 | 2,406 | 7,484 | (1,158 | ) | 39,090 | ||||||||||||||
Quarter | ||||||||
Ended | ||||||||
March 31, | ||||||||
2006 | ||||||||
(1) Depreciation | ||||||||
Additional depreciation expense reflecting the Company’s share in the increase in value of certain TGC tangible assets, depreciated over 9 years. | $ | (77 | ) | |||||
(2) Amortization | ||||||||
Additional amortization expense reflecting the Company’s share in the increase in value of certain TGC intangible assets, depreciated over a period of 8 to 10 years. | $ | (284 | ) | |||||
(3) Interest Expense | ||||||||
Increase in interest expense assuming the amount drawn under MIC’s revolving credit facility relating to the IMTT purchase was outstanding for the quarter ended March 31, 2006. | $ | (2,818 | ) | |||||
Increase in interest expense assuming the amount drawn under MIC’s revolving credit facility relating to the TGC was outstanding for the first quarter ended March 31, 2006. | $ | (1,594 | ) | |||||
Increase in interest expense assuming the amount drawn under TGC’s term loan’s ($160 million) was outstanding for the quarter ended March 31, 2006. | $ | (896 | ) | |||||
$ | (5,308 | ) | ||||||
(4) Equity in income of unconsolidated subsidiary | ||||||||
Additional amortization and depreciation expense reflecting the Company’s share in the increase in value of certain IMTT tangible and intangible assets, depreciated over a period of 10 to 30 years. | $ | (1,925 | ) | |||||
Net elimination of certain intercompany business relationships that ceased upon the acquisition of our 50% interest in IMTT | $ | 73 | ||||||
Elimination of interest expense of $32.6 million of debt that was repaid by IMTT Holdings using the proceeds of our equity investment | $ | 688 | ||||||
$ | (1,164 | ) | ||||||
(5) Income tax expense | ||||||||
Net impact upon income taxes as a result of the above adjustments | $ | 2,781 | ||||||
(6) Minority Interest | ||||||||
Removal of minority interest not acquired in TGC acquisition | $ | 5 | ||||||
GRAND TOTAL ALL ADJUSTMENTS | $ | (4,047 | ) | |||||
MACQUARIE INFRASTRUCTURE COMPANY TRUST
CONDENSED COMBINED PRO FORMA BALANCE SHEET
As of June 30, 2006 ($ in thousands)
CONDENSED COMBINED PRO FORMA BALANCE SHEET
As of June 30, 2006 ($ in thousands)
MIC | Dispositions | |||||||||||||||||||
MCG | SEW | YLL | Total | |||||||||||||||||
Cash and cash equivalents (A) | 37,843 | 76,446 | 61,000 | 81,147 | 256,436 | |||||||||||||||
Restricted cash | 5,609 | 5,609 | ||||||||||||||||||
Accounts receivable, less allowance for doubtful debts | 39,718 | 39,718 | ||||||||||||||||||
Dividends receivable | 9,247 | — | 9,247 | |||||||||||||||||
Other receivables | 4,531 | 4,531 | ||||||||||||||||||
Inventories | 9,365 | 9,365 | ||||||||||||||||||
Prepaid expenses | 4,015 | 4,015 | ||||||||||||||||||
Deferred income taxes | 2,115 | 2,115 | ||||||||||||||||||
Income tax receivable | 3,066 | 3,066 | ||||||||||||||||||
Other | 9,446 | 9,446 | ||||||||||||||||||
Total current assets | 124,955 | 76,446 | 61,000 | 81,147 | 343,548 | |||||||||||||||
Property, equipment, land and leasehold improvements, net | 461,314 | 461,314 | ||||||||||||||||||
Restricted cash | 18,722 | 18,722 | ||||||||||||||||||
Equipment lease receivables | 42,449 | 42,449 | ||||||||||||||||||
Investments in unconsolidated businesses (B) | 431,764 | (77,959 | ) | 353,805 | ||||||||||||||||
Investment, cost [C] | 37,971 | (37,971 | ) | — | ||||||||||||||||
Securities, available for sale (D) | 72,462 | (72,462 | ) | — | ||||||||||||||||
Related party subordinated loan (B) | 21,147 | (21,147 | ) | — | ||||||||||||||||
Goodwill | 402,143 | 402,143 | ||||||||||||||||||
Intangibles assets, net | 308,461 | 308,461 | ||||||||||||||||||
Deposits and deferred costs on acquisitions | 2,698 | 2,698 | ||||||||||||||||||
Deferred financing costs, net of accumulated amortisation | 16,503 | 16,503 | ||||||||||||||||||
Fair value of derivative instruments | 21,348 | 21,348 | ||||||||||||||||||
Other | 5,536 | 5,536 | ||||||||||||||||||
Total assets | 1,967,473 | 3,984 | 23,029 | (17,959 | ) | 1,976,527 | ||||||||||||||
Due to manager | 3,829 | 3,829 | ||||||||||||||||||
Accounts payable | 24,888 | 24,888 | ||||||||||||||||||
Accrued expenses (B) | 15,165 | (13 | ) | 15,152 | ||||||||||||||||
Current portion of notes payable and capital leases | 5,832 | 5,832 | ||||||||||||||||||
Current portion of long-term debt (B) | 2,146 | 2,146 | ||||||||||||||||||
Other | 9,366 | (14 | ) | 9,352 | ||||||||||||||||
61,226 | — | — | (27 | ) | 61,199 | |||||||||||||||
Capital leases and notes payable, net of current portion | 3,259 | 3,259 | ||||||||||||||||||
Long-term debt, net of current portion | 1,044,797 | 1,044,797 | ||||||||||||||||||
Related party long-term debt (B) | 20,168 | (20,168 | ) | — | ||||||||||||||||
Deferred income taxes | 228,933 | 228,933 | ||||||||||||||||||
Income tax liability | 4,306 | 4,306 | ||||||||||||||||||
Fair value of derivative instruments (E) | 606 | (7 | ) | (225 | ) | (374 | ) | — | ||||||||||||
Other | 21,279 | 21,279 | ||||||||||||||||||
Total liabilities | 1,384,574 | (7 | ) | (225 | ) | (20,569 | ) | 1,363,773 | ||||||||||||
Minority interests | 8,811 | 8,811 | ||||||||||||||||||
Trust stock | 560,549 | 560,549 | ||||||||||||||||||
Accumulated OCI (F) | (1,067 | ) | (2,483 | ) | 1,814 | 2,178 | 442 | |||||||||||||
Accumulated gain (G) | 14,606 | 6,474 | 21,440 | 432 | 42,952 | |||||||||||||||
Stockholders’ equity | 574,088 | 3,991 | 23,254 | 2,610 | 603,943 |
As of | ||||||
June 30, 2006 | ||||||
($ in thousands) | ||||||
[A] | Cash and cash equivalents | |||||
Reflects the proceeds received on the sale of investments, net of cash disposed: | ||||||
MCG | $ | 76,446 | ||||
SEW | $ | 61,000 | ||||
MYL | $ | 81,147 | ||||
MIC intends to use the cash proceeds from the sale of our investments in MCG, SEW | ||||||
and MYL to reduce its borrowings under the acquisition credit facility at the | ||||||
Macquarie Infrastructure Company Inc. level, which was $274.0 million at June 30, | ||||||
2006. This has not been reflected in the above pro forma balance sheet. | ||||||
[B] | Investments in unconsolidated business, Related party subordinated loan, Accrued | |||||
expenses, Other current liabilities and Related party long-term debt | ||||||
Reflects the sale of MYL | $ | (77,959 | ) | |||
[C] | Investment, cost | |||||
Reflects the sale of our investment in SEW | $ | (37,971 | ) | |||
[D] | Securities, available for sale | |||||
Reflects the sale of our investment in MCG | $ | (72,462 | ) | |||
[E] | Fair value of derivative instruments | |||||
Reflects reversal of the fair value of the foreign currency forward | ||||||
contracts entered to hedge distributions from the foreign investments. We | ||||||
entered into off-setting contracts on August 17 and August 24, 2006: | ||||||
MCG | $ | (7 | ) | |||
SEW | $ | (225 | ) | |||
MYL | $ | (374 | ) | |||
[F] | Accumulated other comprehensive income | |||||
Reflects the other comprehensive income arising from foreign currency | ||||||
forward contracts entered to hedge distributions from the foreign | ||||||
investments and the revaluation of foreign currency balance sheet items: | ||||||
MCG | $ | (2,483 | ) | |||
SEW | $ | 1,814 | ||||
MYL | $ | 2,178 | ||||
[G] | Accumulated gain | |||||
Reflects the gain realized on the sale of our investments: | ||||||
MCG | $ | 6,474 | ||||
SEW | $ | 21,440 | ||||
Yorkshire | $ | 432 |
MACQUARIE INFRASTRUCTURE COMPANY TRUST
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 ($ in thousands, except per share data)
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 ($ in thousands, except per share data)
Acquisitions | Dispositions | |||||||||||||||||||||||||||||||
Pro-Forma | ||||||||||||||||||||||||||||||||
MIC | IMTT | TGC | MCG | SEW | MYL | Adjust | Total | |||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Revenue from product sales | 98,914 | 71,944 | 170,858 | |||||||||||||||||||||||||||||
Service revenue | 90,630 | — | 90,630 | |||||||||||||||||||||||||||||
Financing and equipment lease income | 2,583 | — | 2,583 | |||||||||||||||||||||||||||||
Total revenue | 192,127 | — | 71,944 | — | — | — | — | 264,071 | ||||||||||||||||||||||||
Cost of revenue | — | |||||||||||||||||||||||||||||||
Cost of product sales | (61,279 | ) | (48,176 | ) | (109,455 | ) | ||||||||||||||||||||||||||
Cost of services | (43,664 | ) | — | (43,664 | ) | |||||||||||||||||||||||||||
Gross Profit | 87,184 | — | 23,768 | — | — | — | — | 110,952 | ||||||||||||||||||||||||
Selling, general and administrative expenses | (48,244 | ) | (10,965 | ) | 14 | (59,195 | ) | |||||||||||||||||||||||||
Fees to manager | (10,196 | ) | — | (10,196 | ) | |||||||||||||||||||||||||||
Depreciation expense | (3,831 | ) | (2,353 | ) | (169 | ) (1) | (6,353 | ) | ||||||||||||||||||||||||
Amortisation of intangibles | (7,026 | ) | (2 | ) | (357 | ) (2) | (7,385 | ) | ||||||||||||||||||||||||
Operating income | 17,887 | — | 10,448 | — | — | 14 | (526 | ) | 27,823 | |||||||||||||||||||||||
Dividend income | 5,002 | — | (2,352 | ) | (2,650 | ) | — | |||||||||||||||||||||||||
Interest income | 2,882 | 463 | (827 | ) | 2,518 | |||||||||||||||||||||||||||
Interest expense | (31,267 | ) | (3,786 | ) | 521 | (6,595 | ) (3) | (41,127 | ) | |||||||||||||||||||||||
Equity in earnings | 5,568 | 3,225 | — | (5,320 | ) | (2,132 | ) (4) | 1,341 | ||||||||||||||||||||||||
Unrealized gain on derivative instruments | 20,162 | — | — | — | — | — | — | 20,162 | ||||||||||||||||||||||||
Other income (expense) | (73 | ) | (1,876 | ) | — | — | — | (101 | ) (5) | (2,050 | ) | |||||||||||||||||||||
Income (loss) from continuing operations before income tax | 20,161 | 3,225 | 5,249 | (2,352 | ) | (2,650 | ) | (5,612 | ) | (9,354 | ) | 8,667 | ||||||||||||||||||||
Income tax expense | (3,011 | ) | (2,062 | ) | 219 | 15 | 2,263 | (6) | (2,576 | ) | ||||||||||||||||||||||
Minority interests | (152 | ) | — | (152 | ) | |||||||||||||||||||||||||||
Net income | 16,998 | 3,225 | 3,187 | (2,133 | ) | (2,650 | ) | (5,597 | ) | (7,091 | ) | 5,939 | ||||||||||||||||||||
Basic and diluted EPS | 0.63 | 0.22 | ||||||||||||||||||||||||||||||
Basic no. of shares | 27,056,505 | 27,056,505 | ||||||||||||||||||||||||||||||
Diluted no. of shares | 27,069,835 | 27,069,835 | ||||||||||||||||||||||||||||||
Reconciliation of net income (loss) to EBITDA: | ||||||||||||||||||||||||||||||||
Net income (loss) | 16,998 | 3,225 | 3,187 | (2,133 | ) | (2,650 | ) | (5,597 | ) | (7,091 | ) | 5,939 | ||||||||||||||||||||
Interest expense, net | 28,385 | — | 3,323 | — | — | 306 | 6,595 | 38,609 | ||||||||||||||||||||||||
Income tax benefit (expense) | 3,011 | — | 2,062 | (219 | ) | — | (15 | ) | (2,263 | ) | 2,576 | |||||||||||||||||||||
Depreciation expense — airport parking & district energy (7) | 4,459 | — | — | — | — | — | — | 4,459 | ||||||||||||||||||||||||
Depreciation expense — per above (7) | 3,831 | — | 2,353 | — | — | — | 169 | 6,353 | ||||||||||||||||||||||||
Amortization of intangibles (7) | 7,026 | — | 2 | — | — | — | 357 | 7,385 | ||||||||||||||||||||||||
EBITDA | 63,710 | 3,225 | 10,927 | (2,352 | ) | (2,650 | ) | (5,306 | ) | (2,233 | ) | 65,321 | ||||||||||||||||||||
Six Months | ||||||||
Ended June 30, | ||||||||
2006 | ||||||||
($ in thousands) | ||||||||
(1) Depreciation | ||||||||
Additional depreciation expense reflecting the Company’s share in the increase in value of certain TGC tangible assets, depreciated over 9 years | $ | 169 | ||||||
(2) Amortization of intangibles | ||||||||
Additional amortization expense reflecting the Company’s share in the increase in value of certain TGC intangible assets, depreciated over a period of 9 to 14 years | $ | 357 | ||||||
(3) Interest expense | ||||||||
Increase in interest expense assuming the amount drawn under MIC’s revolving credit facility relating to the IMTT purchase was outstanding for the entire six months ended June 30, 2006 | $ | (3,694 | ) | |||||
Increase in interest expense assuming the amount drawn under MIC’s revolving credit facility relating to the TGC purchase was outstanding for the entire six months ended June 30, 2006 | $ | (2,781 | ) | |||||
Adjustment to interest expense assuming the amount drawn under TGC’s term loan ($160 million) was outstanding for the entire six months ended June 30, 2006 | $ | 86 | ||||||
Amortization of deferred financing costs of $3.3 million relating to TGC’s term loan ($160 million) | $ | (206 | ) | |||||
$ | (6,595 | ) | ||||||
(4) Equity in earnings (loss) and amortization charges of investees | ||||||||
Additional amortization and depreciation expense reflecting the Company’s share in the increase in value of certain IMTT tangible and intangible assets, depreciated over a period of 10 to 30 years | $ | (2,668 | ) | |||||
Net elimination of certain intercompany business relationships that ceased upon the acquisition of our 50% interest of IMTT | $ | 48 | ||||||
Elimination of interest expense relating to $32.6 million of debt that was repaid by IMTT Holdings using the proceeds of our equity investment | $ | 488 | ||||||
$ | (2,132 | ) | ||||||
(5) Other expense, net | ||||||||
Removal of net gains on foreign currency forward contracts entered into, to hedge distributions from offshore investments | $ | (101 | ) | |||||
(6) Income tax benefit | ||||||||
Adjustment to record estimated tax benefit relating to the pro forma adjustments | $ | (2,263 | ) | |||||
(7) | ||||||||
Depreciation includes $1.6 million and $2.8 million for our airport parking and district energy businesses, respectively, which are included in cost of services. Depreciation and amortization of intangibles do not include our pro forma share of MYL and IMTT depreciation and amortization expense. Our share of MYL amortization expense for the six months ended June 30, 2006 was $1.9 million. Our pro forma share of IMTT depreciation and amortization expense for the same period was $11.6 million. These items are included in equity in earnings (loss) and amortization charges of investees. | ||||||||
GRAND TOTAL OF ALL ADJUSTMENTS | $ | (7,091 | ) | |||||