Exhibit 99.2
UNAUDITED PROFORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Macquarie Infrastructure Company LLC |
Condensed Combined Pro Forma Balance Sheet |
As of June 30, 2007 |
($ in thousands, except share amounts) |
Acquisitions | ||||||||||||||||
MIC | Option | SJJC | Pro forma Adjustments | Pro forma Combined | ||||||||||||
$ | $ | $ | $ | $ | ||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | 73,000 | (25,500 | ) | 1,508 | (19,925 | ) A | 29,083 | |||||||||
Restricted cash | 1,290 | — | — | 1,290 | ||||||||||||
Accounts receivable, less allowance for doubtful debts | 66,291 | 11,853 | — | 78,144 | ||||||||||||
Dividends receivable | 7,000 | — | — | 7,000 | ||||||||||||
Other receivables | 126 | — | — | 126 | ||||||||||||
Inventories | 12,539 | 446 | — | 12,985 | ||||||||||||
Prepaid expenses | 4,564 | 908 | 50 | B | 5,522 | |||||||||||
Deferred income taxes | 2,411 | — | — | 2,411 | ||||||||||||
Other | 12,747 | 25,500 | — | (25,500 | ) A | 12,747 | ||||||||||
Total current assets | 179,968 | — | 14,715 | (45,375 | ) | 149,308 | ||||||||||
Property, equipment, land and leasehold improvements, net | 550,165 | 18,162 | 14,094 | C | 582,421 | |||||||||||
Restricted cash | 25,551 | — | 1,509 | D | 27,060 | |||||||||||
Equipment lease receivables | 40,101 | — | — | 40,101 | ||||||||||||
Investment in unconsolidated business | 227,958 | — | — | 227,958 | ||||||||||||
Goodwill | 513,867 | 5,931 | 38,239 | E | 558,037 | |||||||||||
Intangible assets, net | 553,441 | 5,207 | 99,593 | F | 658,241 | |||||||||||
Deposits and deferred costs on acquisitions | 2,717 | — | — | 2,717 | ||||||||||||
Deferred financing costs, net of accumulated amortization | 18,908 | — | 723 | G | 19,631 | |||||||||||
Fair value of derivative instruments | 11,681 | 24 | — | 11,705 | ||||||||||||
Other | 2,933 | 631 | — | 3,564 | ||||||||||||
Total assets | 2,127,290 | — | 44,670 | 108,783 | 2,280,743 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Due to manager | 49,871 | — | — | 49,871 | ||||||||||||
Accounts payable | 34,235 | 3,326 | — | 37,561 | ||||||||||||
Accrued expenses | 27,030 | 2,235 | — | 29,265 | ||||||||||||
Current portion of notes payable and capital leases | 11,954 | — | — | 11,954 | ||||||||||||
Current portion of long-term debt | 6,757 | 599 | 59,401 | H | 66,757 | |||||||||||
Distributions payable | - | — | — | — | ||||||||||||
Fair value of derivative instruments | 1,278 | — | — | 1,278 | ||||||||||||
Other | 8,484 | 5,706 | — | 14,190 | ||||||||||||
Total current liabilities | 139,609 | — | 11,866 | 59,401 | 210,876 | |||||||||||
Capital leases and notes payable, net of current portion | 2,320 | — | — | 2,320 | ||||||||||||
Long-term debt, net of current portion | 991,326 | 7,613 | 74,573 | H | 1,073,512 | |||||||||||
Deferred income taxes | 149,226 | — | — | 149,226 | ||||||||||||
Fair value of derivative instruments | — | — | — | — | ||||||||||||
Other | 27,959 | — | — | 27,959 | ||||||||||||
Total liabilities | 1,310,440 | — | 19,479 | 133,974 | 1,463,893 | |||||||||||
Minority interests | 7677 | — | — | — | 7,677 | |||||||||||
Stockholders' equity: | ||||||||||||||||
LLC Interests, no par value; 500,000,000 authorized; 37,562,165 shares issued and outstanding at June 30, 2007 | 820,700 | — | — | 820,700 | ||||||||||||
Accumulated other comprehensive (loss) income | 6,044 | 24 | (24 | ) I | 6,044 | |||||||||||
Accumulated loss | (17,571 | ) | (17,571 | ) | ||||||||||||
Members' equity | — | 25,167 | (25,167 | ) J | ||||||||||||
Total stockholders' equity | 809,173 | — | 25,191 | (25,191 | ) | 809,173 | ||||||||||
Total liabilities and stockholders' equity | 2,127,290 | — | 44,670 | 108,783 | 2,280,743 |
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As at June 30, | |||||
2007 | |||||
($ in thousands) | |||||
A | Cash | ||||
Subsequent to June 30, 2007, MIC purchased an option to acquire SJJC at a price $25.5 million less than the estimated fair value of SJJC. This transaction is shown to reflect the total estimated fair value of SJJC at the acquisition date. | $ | (25,500 | ) | ||
Cash used to fund purchase price | (19,925 | ) | |||
B | Prepaid expenses | ||||
Reflects annual agency fees for SJJC long-term debt funded at closing | $ | 50 | |||
C | Property, equipment, land and leasehold improvements, net | ||||
Reflects excess of fair value over net book value | $ | 14,094 | |||
D | Restricted cash | ||||
Reflects restricted cash balance established for SJJC long-term debt | $ | 1,509 | |||
E | Goodwill | ||||
Reflects the purchase price paid for SJJC in excess of the fair value of net assets acquired | $ | 38,239 | |||
F | Intangible assets, net | ||||
Reflects the fair value of SJJC's airport operating rights, customer contracts and non-compete agreements | $ | 99,593 | |||
G | Deferred financing costs, net of accumulated amortization | ||||
Reflects deferred financing charges incurred as part of the SJJC long-term debt | $ | 723 | |||
H | Long term debt | ||||
Reflects the net increase in the Company’s short-term revolving credit facility as a result of the SJJC purchase | $ | (59,401 | ) | ||
Reflects the net increase in SJJC's borrowings as a result of the SJJC purchase | $ | (74,573 | ) | ||
F | Accumulated other comprehensive (loss) income | ||||
Reflects the elimination of SJJC’s historical other comprehensive income | $ | 24 | |||
G | Accumulated earnings | ||||
Reflects the elimination of SJJC’s historical accumulated earnings | $ | 25,167 |
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Macquarie Infrastructure Company LLC |
Condensed Combined Pro Forma Statement of Operations |
For the six months ended June 30, 2007 |
($ in thousands, except number of shares and per share data) |
Acquisitions | |||||||||||||||
MIC | SJJC | Pro forma Adjustments | Pro forma Combined | ||||||||||||
$ | $ | $ | $ | ||||||||||||
Revenue | |||||||||||||||
Revenue from product sales | 110,648 | 8,081 | — | 118,729 | |||||||||||
Service revenue | 57,086 | 11,638 | — | 68,724 | |||||||||||
Financing and equipment lease income | 1,248 | — | — | 1,248 | |||||||||||
Total revenue | 168,982 | 19,719 | — | 188,701 | |||||||||||
Costs and expenses | — | ||||||||||||||
Cost of product sales | 70,484 | 4,585 | — | 75,069 | |||||||||||
Cost of services | 23,342 | 7,775 | — | 31,117 | |||||||||||
Selling, general and administrative | 38,978 | 4,551 | — | 43,529 | |||||||||||
Fees to manager | 5,561 | — | — | 5,561 | |||||||||||
Depreciation | 3,891 | 445 | — | 4,336 | |||||||||||
Amortization of intangibles | 6,928 | 45 | 1,895 | (1 | ) | 8,868 | |||||||||
Total operating expenses | 149,184 | 17,401 | 1,895 | 168,480 | |||||||||||
Operating income | 19,798 | 2,318 | (1,895 | ) | 20,221 | ||||||||||
Other income (expense) | |||||||||||||||
Dividend income | — | — | — | — | |||||||||||
Interest income | 1,459 | 23 | — | 1,482 | |||||||||||
Interest expense | (17,566 | ) | (115 | ) | (4,939 | ) | (2 | ) | (22,620 | ) | |||||
Equity in earnings and amortization | |||||||||||||||
charges of investees | 3,465 | — | — | 3,465 | |||||||||||
Losses on derivative instruments | (477 | ) | — | — | (477 | ) | |||||||||
Other income (expense), net | (916 | ) | — | — | (916 | ) | |||||||||
Income (loss) before income taxes | |||||||||||||||
and minority interests | 5,763 | 2,226 | (6,834 | ) | 1,155 | ||||||||||
Income tax benefit (expense) | 2,045 | (3 | ) | 1,696 | (3 | ) | 3,738 | ||||||||
Minority interests | 69 | — | — | 69 | |||||||||||
Net income (loss) | 7,877 | 2,223 | (5,138 | ) | 4,962 | ||||||||||
Basic and diluted income per share | $ | 0.21 | $ | 0.13 | |||||||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 37,562,165 | 37,562,165 | |||||||||||||
Diluted | 37,579,034 | 37,579,034 | |||||||||||||
Reconciliation of net income (loss) to EBITDA | |||||||||||||||
Net income (loss) | 7,877 | 2,223 | (5,138 | ) | 4,962 | ||||||||||
Interest expense, net | 16,107 | 92 | 4,939 | (2 | ) | 21,138 | |||||||||
Income tax (benefit) expense | (2,045 | ) | 3 | (1,696 | ) | (3 | ) | (3,738 | ) | ||||||
Depreciation expense (4) | 6,357 | 445 | — | — | 6,802 | ||||||||||
Amortization of intangibles (4) | 6,928 | 45 | 1,895 | (1 | ) | 8,868 | |||||||||
EBITDA | 35,224 | 2,808 | — | 38,032 |
3
Six Months Ended June 30, | |||||
2007 | |||||
($ in thousands) | |||||
(1) | Amortization | ||||
Additional amortization expense reflecting the Company’s share in the increase in value of certain SJJC intangible assets, depreciated over a period of 2 to 40 years. | $ | (1,895 | ) | ||
(2) | Interest expense | ||||
Increase in interest expense assuming the amount drawn under MIC's revolving credit facility relating to the SJJC purchase was outstanding for the six months ended June 30, 2007. | $ | (1,943 | ) | ||
Adjustment to interest expense assuming the amount drawn under SJJC's term loan was outstanding for the six months ended June 30, 2007 | $ | (2,911 | ) | ||
Amortization of deferred financing costs of $723,000 relating to SJJC's term loan. | $ | (85 | ) | ||
$ | (4,939 | ) | |||
(3) | Income tax benefit | ||||
Adjustment to record estimated tax benefit relating to the pro forma adjustments. | $ | 1,696 | |||
(4) | Depreciation includes $2.9 million and $2.1 million for our district energy and airport parking businesses, respectively, which are included in cost of services. Depreciation and amortization of intangibles does not include our share of IMTT depreciation | ||||
GRAND TOTAL OF ALL ADJUSTMENTS | $ | (5,138 | ) |
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