Macquarie Infrastructure Company LLC
125 W. 55th Street New York, NY 10019 USA |
Media Release
FULL YEAR 2007 FINANCIAL RESULTS | |
| · | Cash Available for Distribution Increases 46.5% to $105 Million |
| · | Quarterly Dividend Increased to $0.635 Per Share |
| · | Performance Fees, Non-Cash Expenses Contribute to Net Loss |
MIC reported gross profit for 2007 of $351.5 million or an increase of 59% over 2006. Gross profit is an important measure of the profitability of our Company and its ability to maintain and, where possible, improve margins in its businesses.
The Company successfully refinanced the debt of two of its consolidated businesses during 2007. The improved terms of the refinanced facilities resulted in an increase in the average maturity of all operating company debt to 5.8 years at January 30, 2008. The weighted average cost of MIC’s operating company level debt decreased to 6.6%.
Expenses incurred in connection with the debt refinancing contributed to a net loss for the year ended December 31, 2007 of $52.1 million. In addition to $27.5 million of refinancing-related expenses, the Company also recorded a net $66.7 million of non-cash depreciation and amortization expenses and performance fees payable to its manager of $44.0 million.
Refinancing expenses other than the non-cash write-down of deferred financing costs were funded from proceeds of new debt facilities and did not impact distributable cash. Performance fees were reinvested in MIC LLC interests and did not impact distributable cash. For 2006 MIC reported net income of $49.9 million including $60.1 million in gains from the sale of certain assets, $65.2 million of non-cash depreciation and amortization expenses, and $4.1 million of performance fees payable to our manager that were reinvested in MIC LLC interests.
MIC’s estimated cash available for distribution (“CAD”) increased 46% to $105.0 million in 2007 from $71.7 million in 2006. CAD is a non-GAAP measure used by the Company to assess its ability to sustain and increase its quarterly dividends. MIC distributes substantially all CAD to investors, subject to maintaining prudent reserves in its businesses. CAD exceeded the sum of cash distributions made during 2007 by 7.2%.
On February 25, MIC’s board of directors approved a dividend of $0.635 per share for the fourth quarter of 2007. The dividend will be payable on March 10, 2008 to shareholders of record on March 5, 2008. The increase is the Company’s seventh consecutive step-up in quarterly dividends and is 11.4% more than the dividend paid in the fourth quarter of 2006.
“MIC’s businesses are providers of basic, everyday services. Their strong performance in both the fourth quarter and full year 2007, and our ability to once again increase our cash dividend, reflects the stable, defensive nature of the asset class” said Peter Stokes, Chief Executive Officer of Macquarie Infrastructure Company.
OPERATING BUSINESSES PERFORMANCE HIGHLIGHTS
MIC reports EBITDA and contribution margin, both of which are non-GAAP financial measures, as it considers them to be important indicators of overall performance. The attached tables provide a reconciliation of EBITDA to net income, and contribution margin to revenue. The Company believes that EBITDA, net of other non-cash and non-recurring items, also provides insight into the performance of certain of its operating companies and their ability to generate distributable cash. The reporting of contribution margin by the gas production and distribution business provides additional insight into the performance of that business net of changes in synthetic natural gas feedstock prices that typically are recovered in revenue.
| | · | Gross profit in the Company’s airport services business was $90.1 million and $276.7 million for the fourth quarter and full year 2007, respectively. Gross profit from all locations increased by 66% over the full year 2006. Gross profit generated at sites owned for more than 12 months increased by 11% for the full year. |
| | o | Fuel sales and fuel-related services are the primary drivers of gross profit in the business. The airport services business reported increases in both the volume of general aviation fuel sold and the average margin on fuel sales. Margin improvement was driven by an increased proportion of transient customers who typically pay a higher margin on fuel relative to base tenants. |
| | o | EBITDA generated by the airport services business increased to $26.1 million and $108.9 million in the fourth quarter and for the full year, respectively. The improvement is an increase of 54% over the full year 2006. Reported EBITDA for 2007 included a $9.8 million expense, “loss on extinguishment of debt,” incurred in connection with refinancing of the business’ debt facility in the fourth quarter. The expense was a non-cash write down of deferred financing costs and had no impact on distributable cash. EBITDA also included a $1.7 million non-cash loss stemming from the change in the value of interest rate hedges. Excluding the losses on derivatives and the write down of deferred financing costs, both of which are non-cash, EBITDA from existing locations would have increased by 14%. |
| | o | In the December, 2007 quarter the business completed the sale of its fixed based operation (“FBO”) at the airport at South Lake Tahoe and the acquisition of the sole FBO at the airport at Rifle, Colorado. The Rifle FBO was acquired for $15.5 million in cash. The sale of South Lake Tahoe resulted in a non-cash loss on disposal of $760,000 in the fourth quarter. The business also entered into an agreement to acquire a portfolio of three FBOs for a total of $42.0 million including transaction related costs. The acquisition includes sites at Sun Valley, Idaho, and Farmington and Albuquerque, New Mexico. The Company expects the acquisition to close in the first quarter of 2008 and to be funded using proceeds drawn on the MIC Inc. level acquisition-related revolving credit facility. |
| | · | In May, 2006, MIC acquired a 50% interest in the company that owns the fourth largest bulk liquid storage terminal business in the country. The business generated gross profit of $32.9 million and $120.1 million in the fourth quarter and for the full year 2007, respectively. The largest component, terminal gross profit or gross profit generated by storage related activities, increased by 21% over the full year 2006. Excluding the results of the IMTT-Quebec operations that were not consolidated in the business’ accounts in 2006, terminal gross profit increased by 16%. MIC does not consolidate the financial results of the bulk liquid storage terminal business with those of its controlled businesses. |
| | o | The improved performance in the bulk liquid storage business was primarily the result of a 9.1% increase in average storage rental rates. Continued strong demand for storage allowed the business to increase rates in storage contracts that renewed during the year. |
| | o | The bulk liquid storage terminal business paid MIC a total of $28.0 million in dividends in 2007 including a dividend of $7.0 million for the December quarter. MIC expects to receive cash dividends of $7.0 million per quarter from the business during 2008. |
| | o | Cash flow from operations in the bulk liquid storage business increased to $91.4 million in 2007 or by 37% over 2006. Maintenance and environmental capital expenditures for the year totaled $31.6 million. |
| | o | The bulk liquid storage business generated EBITDA of $14.2 million and $67.1 million in the fourth quarter and for the full year 2007. Reported EBITDA decreased by 20% compared to the full year 2006. The decrease reflects non-cash losses of $21.0 million on changes in the value of interest rate hedges and a $12.3 million non-recurring “make whole” payment (net present value of future interest and principal payments foregone by the lender) incurred in connection with refinancing the business’ debt. The refinancing expense was funded using a portion of the proceeds of a new debt facility and had no impact on distributable cash. Excluding these items, EBITDA for the full year would have increased by 21%. |
| | o | The business has completed or committed to expansion projects having a total value of $322.0 million. Through year end the business had completed construction of and was generating revenue from 18 of 31 new tanks that are a part of the expansion at existing sites. A substantial portion of a new chemicals logistics center at Geismar, LA has also been completed. In addition, the business acquired a small facility at Joliet, IL for total consideration of $18.5 million. Including the acquisition, management expects that the expansion projects will produce an annualized incremental $48.3 million of gross profit and EBITDA beginning in 2009. |
| | · | The Company’s gas production and distribution business generated a combined utility and non-utility contribution margin of $16.0 million and $61.1 million in the fourth quarter and for the full year 2007, respectively. Total contribution margin for the full year increased 6% over 2006. The increase was primarily the result of $4.1 million of customer credits that reduced revenue in 2006, offset by higher fuel cost adjustments. Utility therms (gas volume) sold and non-utility gallons sold both increased slightly compared to 2006. |
| | o | The business generated full year EBITDA of $23.9 million, a 38% increase over 2006, on the increased contribution margin, partially offset by higher operating expenses. The increased expenses included primarily higher employee benefits costs and costs associated with a pipeline inspection program. Excluding non-cash losses on changes in the value of interest rate hedges, and the 2006 customer credits recovered from an acquisition-related escrow account, EBITDA would have decreased by 3% compared to 2006. |
| | o | Gas products are used primarily for cooking, laundry (hot water, steam) and environmental lighting in Hawaii. As a result, demand and gross profit remain quite constant throughout both market cycles and seasons. |
| | · | MIC’s district energy business reported gross profit of $3.1 million and $16.4 million in the quarter and for the full year 2007, respectively. Gross profit increased 16% over the full year 2006. The combination of inflation-based rate increases and warmer summer temperatures in Chicago in 2007 compared to 2006 contributed to the improved results. |
| | o | EBITDA generated in the fourth quarter and for the full year was $3.6 million and $1.4 million, respectively. Reported EBITDA decreased 91% compared to 2006 as a result of a “make-whole” payment (net present value of future interest and principal payments foregone by the lender) and non-cash write-down of deferred financing costs together totaling $17.7 million. The expenses were incurred in connection with the successful refinancing of the long-term debt of the business in the third quarter. The make-whole expense of $14.7 million was funded with a portion of the proceeds of a new debt facility and had no impact on distributable cash generated by the business. Excluding these non-cash and non-recurring items, EBITDA would have increased by 24%. |
| | o | During 2007 and year to date in 2008 the district energy business increased its net tons of cooling under contract by 6.5%. Delivery of the cooling will commence over a period of several years as the new buildings are completed. |
| | · | Gross profit at the Company’s airport parking business was $3.0 million and $17.7 million in the fourth quarter and for the full year 2007, respectively. Full year gross profit decreased 18% year over year as improvement in average revenue per car was more than offset by non-cash expenses (depreciation, rent in excess of lease), higher operating expenses including for improved staffing and security, and lower overall customer volume. |
| | o | EBITDA declined to $3.2 million and $15.5 million in the fourth quarter and for the full year 2007, respectively. Excluding non-cash losses resulting from the change in value of interest rate hedges, EBITDA would have been 24% lower than in 2006. |
| | o | Average revenue per car out increased 4.8% in both the fourth quarter and for the full year 2007. The increase reflects both the strategic shift away from marketing to airline/Transportation Security Administration employees and success in attracting higher margin business and leisure travelers. |
ESTIMATED CASH AVAILABLE FOR DISTRIBUTION
The Company believes that it can provide better insight into its ability to support its distributions by making certain adjustments to its “as reported” results. For example, its results under Generally Accepted Accounting Principles (“GAAP”) alone do not reflect all of the items that management considers in estimating distributable cash. The table below summarizes MIC’s estimated cash available for distribution (“CAD”), beginning with cash from operations and adjusted for certain dividend income and cash expenditures. Estimated cash available for distribution totaled $105.0 million for the year, a 46% increase over the $71.7 million reported for 2006.
($ Millions) | | Total | |
| | | | |
Cash from operations | | | 96.55 | |
| | | | | |
Cash from operations adjustments | | | 14.25 | |
| | | | | |
Cash from investing and financing activities | | | 11.79 | |
| | | | | |
Working capital | | | (17.57 | ) |
| | | | | |
Estimated Cash Available for Distribution | | | 105.03 | |
MIC’s consolidated cash from operations more than doubled to $96.6 million in 2007, from $46.4 million in 2006. The increase in cash from operations was attributable to same site growth in the airport services and district energy businesses and contributions from successful acquisitions concluded during 2006 and 2007 by the airport services business. Cash from operations is the starting point for calculating estimated cash available for distribution.
| · | Estimated CAD for 2007 is increased by a net $14.5 million of adjustments to cash from operations including primarily income tax refunds received by the airport services business, escrow recoveries by the gas production and distribution business and equity-funded acquisition integration expenses in the airport services business. |
| · | Estimated CAD for 2007 is increased by a net $11.8 million in cash from investing and financing activities. The increase reflects primarily the $28.0 million dividend received from the Company’s bulk liquid storage business that does not flow through earnings or cash from operations, offset by a net $14.4 million of capital expenditures paid in cash or accrued and a net $2.1 million in capital lease/debt paydowns and restricted cash releases. |
| · | Estimated CAD is reduced also by $17.6 million of net changes in working capital movements as normal changes in working capital are not considered when calculating CAD. |
MIC estimates that cash available for distribution exceeded the sum of quarterly cash distributions made during 2007 by $7.1 million.
BUSINESS UPDATE AND OUTLOOK
Airport services business - The airport services business expects to complete the acquisition of the SevenBar FBOs in the first quarter. The contribution from additional sites at Sun Valley, Idaho and Albuquerque and Farmington, New Mexico is expected to be immediately yield accretive to MIC. The acquisition will be funded with a drawdown from the Company’s MIC Inc. level revolving credit facility.
MIC expects continued strong performance from its airport services business. General aviation aircraft manufacturers continue to report strong demand for new planes. The increased number of hours that general aviation aircraft are being flown is expected to continue to drive growth in the volume of fuel sold. Management of the airport services business believes that improved access to general aviation and the challenges facing commercial aviation associated with higher load levels, potential mainline carrier consolidation and security-related delays will result in the business being relatively insensitive to downturns in the broader economy.
Bulk liquid storage terminal business - The bulk liquid storage business is expected to continue to perform well as inflation escalators generate terminal revenue growth from existing contracts, expiring contracts are renewed at higher storage rates and storage tanks currently under construction become operational.
Construction of the Geismar facility remains on pace for completion in the second quarter of 2008. Strong fundamental drivers of growth, combined with the incremental increase in gross profit expected from growth capital expenditures including Geismar, are expected to support dividends in excess of the current fixed level following conversion to a variable dividend. In the first quarter of 2009 and thereafter MIC will receive a dividend equal to 50% of the bulk liquid storage terminal business’ cash from operations plus cash from financing activity less maintenance and environmental capital expenditures.
Gas production and distribution business - The fundamental driver of continued growth in the gas production and distribution business is population growth in Hawaii. MIC believes that the business will continue to be a stable source of distributable cash based on the basic nature of the products and services provided.
District energy business - The Company expects continued stable performance from its district energy business, assuming a historically normal level of demand for cooling during the summer of 2008. The business will increase saleable tons of cooling through expansion of chilling and pumping capacity and improvements in system hydrology. System expansion will be undertaken only when contracts for cooling have been signed and not on a speculative basis.
Airport parking business - Yield management strategies, including implementation of lot-level technology for tracking activity, are expected to continue to generate improvement in average revenue per car. The fundamental driver of the volume of cars out, the forecast rate of growth in the number of commercial enplanements nationally, remains intact at approximately 3.5% per year. We expect that effective marketing of the business will result in a comparable level of growth in cars out in the business.
OTHER
On February 28, 2008 MIC will re-file two Statements of Beneficial Ownership (SEC Form 4) that had been previously filed in a timely manner but mistakenly under Macquarie Infrastructure Company Trust in November 2007 and posted on MIC’s website at that time.
CONFERENCE CALL AND WEBCAST
When: MIC has scheduled a conference call for 11:00 a.m. Eastern Standard Time on February 28, 2008 to review its fourth quarter and full year results.
How: To listen to the conference call, please dial +1(888) 637-7734 (domestic) or +1(913) 312-0718 (international), at least 10 minutes prior to the scheduled start time. Interested parties can also listen to the live call via webcast at www.macquarie.com/mic/. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.
Slides: MIC has prepared slides in support of its conference call presentation. The slides will be available for downloading from the MIC website the morning of February 28, 2008. A link to the slides will be located in the “Latest News” section of the MIC homepage.
Replay: For interested individuals unable to listen to the live conference call, a replay will be available through March 13, 2008, at +1(888) 203-1112 (domestic) or +1(719) 457-0820 (international), Passcode: 2109384. An online archive of the webcast will be available on the MIC website for one year.
ABOUT MACQUARIE INFRASTRUCTURE COMPANY
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses, which provide basic, everyday services, to customers in the United States. Its businesses consist of an airport services business, a 50% indirect interest in a bulk liquid storage terminal business, a gas production and distribution business, a district energy business, and an airport parking business. The Company is managed by a wholly-owned subsidiary of Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at WWW.MACQUARIE.COM/MIC.
FORWARD LOOKING STATEMENTS
This filing contains forward-looking statements. We may, in some cases, use words such as "project”, "believe”, "anticipate”, "plan”, "expect”, "estimate”, "intend”, "should”, "would”, "could”, "potentially”, or "may” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this report are subject to a number of risks and uncertainties, some of which are beyond our control including, among other things: our ability to successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, service, comply with the terms of and refinance debt, and implement our strategy, our shared decision-making with co-investors over investments including the distribution of dividends, our regulatory environment establishing rate structures and monitoring quality of service, changes in general economic or business conditions, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, automobile usage, fuel and gas costs, our ability to recover increases in costs from customers, reliance on sole or limited source suppliers, foreign exchange fluctuations, risks or conflicts of interests involving our relationship with the Macquarie Group, environmental risks and changes in U.S. federal tax law.
Our actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which we are not currently aware could also cause our actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
“Macquarie Group” refers to the Macquarie Group of companies, which comprises Macquarie Group Limited and its worldwide subsidiaries and affiliates. Macquarie Infrastructure Company LLC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Infrastructure Company LLC. MIC-G
Investor enquiries Jay A. Davis Investor Relations Macquarie Infrastructure Company (212) 231-1825 | Media enquiries Alex Doughty Corporate Communications Macquarie Infrastructure Company (212) 231-1710 |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
CONSOLIDATED BALANCE SHEETS |
| | | | | | |
| | | December 31, 2007 | | December 31, 2006 | |
| | | ($ in thousands) | |
Assets | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | $ | 57,473 | | $ | 37,388 | |
| Restricted cash | | | 1,335 | | | 1,216 | |
| Accounts receivable, less allowance for doubtful accounts | | | | | | | |
| of $2,380 and $1,435, respectively | | | 94,541 | | | 56,785 | |
| Dividends receivable | | | 7,000 | | | 7,000 | |
| Other receivables | | | 445 | | | 87,973 | |
| Inventories | | | 18,219 | | | 12,793 | |
| Prepaid expenses | | | 10,418 | | | 6,887 | |
| Deferred income taxes | | | 9,330 | | | 2,411 | |
| Income tax receivable | | | - | | | 2,913 | |
| Fair value of derivative instruments | | | 47 | | | 632 | |
| Other | | | 11,659 | | | 14,968 | |
| | | | | | | | |
| Total current assets | | | 210,467 | | | 230,966 | |
| | | | | | | | |
| Property, equipment, land and leasehold improvements, net | | | 674,952 | | | 522,759 | |
| | | | | | | | |
| Restricted cash | | | 19,363 | | | 23,666 | |
| Equipment lease receivables | | | 38,834 | | | 41,305 | |
| Investment in unconsolidated business | | | 211,606 | | | 239,632 | |
| Goodwill | | | 770,108 | | | 485,986 | |
| Intangible assets, net | | | 857,345 | | | 526,759 | |
| Deferred costs on acquisitions | | | 278 | | | 579 | |
| Deferred financing costs, net of accumulated amortization | | | 28,040 | | | 20,875 | |
| Fair value of derivative instruments | | | - | | | 2,252 | |
| Other | | | 2,036 | | | 2,754 | |
| | | | | | | | |
| Total assets | | $ | 2,813,029 | | $ | 2,097,533 | |
| | | | | | | | |
Liabilities and members'/stockholders’ equity | | | | | | | |
| Current liabilities: | | | | | | | |
| Due to manager - related party | | $ | 5,737 | | $ | 4,284 | |
| Accounts payable | | | 59,303 | | | 29,819 | |
| Accrued expenses | | | 31,184 | | | 19,780 | |
| Current portion of notes payable and capital leases | | | 5,094 | | | 4,683 | |
| Current portion of long-term debt | | | 162 | | | 3,754 | |
| Fair value of derivative instruments | | | 14,224 | | | 3,286 | |
| Customer deposits | | | 9,481 | | | 2,127 | |
| Other | | | 8,330 | | | 4,406 | |
| | | | | | | | |
| Total current liabilities | | | 133,515 | | | 72,139 | |
| | | | | | | | |
| Notes payable and capital leases, net of current portion | | | 2,964 | | | 3,135 | |
| Long-term debt, net of current portion | | | 1,426,494 | | | 959,906 | |
| Deferred income taxes | | | 202,683 | | | 163,923 | |
| Fair value of derivative instruments | | | 42,832 | | | 453 | |
| Other | | | 30,817 | | | 25,371 | |
| | | | | | | | |
| Total liabilities | | | 1,839,305 | | | 1,224,927 | |
| | | | | | | | |
| Minority interests | | | 7,172 | | | 8,181 | |
| | | | | | | | |
| Members’/stockholders' equity: | | | | | | | |
| LLC interests, no par value; 500,000,000 authorized; 44,938,380 LLC | | | | | | | |
| interests issued and outstanding at December 31, 2007 and | | | | | | | |
| Trust Stock, no par value; 500,000,000 authorized; 37,562,165 trust | | | | | | | |
| stock issued and outstanding at December 31, 2006 | | | 1,052,062 | | | 864,233 | |
| Accumulated other comprehensive (loss) income | | | (33,055 | ) | | 192 | |
| Accumulated deficit | | | (52,455 | ) | | - | |
| | | | | | | | |
| Total members’/stockholders' equity | | | 966,552 | | | 864,425 | |
| | | | | | | | |
| Total liabilities and members’/stockholders' equity | | $ | 2,813,029 | | $ | 2,097,533 | |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
CONSOLIDATED STATEMENTS OF OPERATIONS |
| | | | | | | | |
| | | Year Ended December 31, 2007 | | Year Ended December 31, 2006 | | Year Ended December 31, 2005 | |
| | | ($ in thousands, except per share amounts) | |
| | | | | | | | |
Revenue | | | | | | | | | | |
| Revenue from product sales | | $ | 445,852 | | $ | 262,432 | | $ | 142,785 | |
| Revenue from product sales - utility | | | 95,770 | | | 50,866 | | | - | |
| Service revenue | | | 284,860 | | | 201,835 | | | 156,655 | |
| Financing and equipment lease income | | | 4,912 | | | 5,118 | | | 5,303 | |
| | | | | | | | | | | |
| Total revenue | | | 831,394 | | | 520,251 | | | 304,743 | |
| | | | | | | | | | | |
Costs and expenses | | | | | | | | | | |
| Cost of product sales | | | 302,283 | | | 192,399 | | | 84,480 | |
| Cost of product sales - utility | | | 64,371 | | | 14,403 | | | - | |
| Cost of services | | | 113,203 | | | 92,542 | | | 82,160 | |
| Selling, general and administrative | | | 193,887 | | | 120,252 | | | 82,636 | |
| Fees to manager - related party | | | 65,639 | | | 18,631 | | | 9,294 | |
| Depreciation | | | 20,502 | | | 12,102 | | | 6,007 | |
| Amortization of intangibles | | | 35,258 | | | 43,846 | | | 14,815 | |
| | | | | | | | | | | |
| Total operating expenses | | | 795,143 | | | 494,175 | | | 279,392 | |
| | | | | | | | | | | |
Operating income | | | 36,251 | | | 26,076 | | | 25,351 | |
| | | | | | | | | | | |
Other income (expense) | | | | | | | | | | |
| Dividend income | | | - | | | 8,395 | | | 12,361 | |
| Interest income | | | 5,963 | | | 4,887 | | | 4,064 | |
| Interest expense | | | (81,653 | ) | | (77,746 | ) | | (33,800 | ) |
| Loss on extinguishment of debt | | | (27,512 | ) | | - | | | - | |
| Equity in (losses) earnings and amortization | | | | | | | | | | |
| charges of investees | | | (32 | ) | | 12,558 | | | 3,685 | |
| Loss on derivative instruments | | | (1,220 | ) | | (1,373 | ) | | - | |
| Gain on sale of equity investment | | | - | | | 3,412 | | | - | |
| Gain on sale of investment | | | - | | | 49,933 | | | - | |
| Gain on sale of marketable securities | | | - | | | 6,738 | | | - | |
| Other (expense) income, net | | | (815 | ) | | 594 | | | 123 | |
| Net (loss) income before income taxes and | | | | | | | | | | |
| minority interests | | | (69,018 | ) | | 33,474 | | | 11,784 | |
| Benefit for income taxes | | | 16,483 | | | 16,421 | | | 3,615 | |
| | | | | | | | | | | |
| Net (loss) income before minority interests | | | (52,535 | ) | | 49,895 | | | 15,399 | |
| | | | | | | | | | | |
| Minority interests | | | (481 | ) | | (23 | ) | | 203 | |
| | | | | | | | | | | |
Net (loss) income | | $ | (52,054 | ) | $ | 49,918 | | $ | 15,196 | |
| | | | | | | | | | | |
| Basic (loss) earnings per share: | | $ | (1.27 | ) | $ | 1.73 | | $ | 0.56 | |
| Weighted average number of shares | | | | | | | | | | |
| outstanding: basic | | | 40,882,067 | | | 28,895,522 | | | 26,919,608 | |
| Diluted (loss) earnings per share: | | $ | (1.27 | ) | $ | 1.73 | | $ | 0.56 | |
| Weighted average number of shares | | | | | | | | | | |
| outstanding: diluted | | | 40,882,067 | | | 28,912,346 | | | 26,929,219 | |
| Cash distributions declared per share | | $ | 2.385 | | $ | 2.075 | | $ | 1.5877 | |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
CONSOLIDATED STATEMENTS OF MEMBERS'/STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) |
| | | | | | | | | | | | |
| | | Trust stock and LLC interests | | | | | | | |
| | Number of Shares | | Amount | | Accumulated Gain (Deficit) | | Accumulated Other Comprehensive Income (Loss) | | Total Members'/ Stockholders' Equity | |
| | | ($ in thousands, except per share amounts) | |
| | | | | | | | | | | | |
| Balance at December 31, 2004 | | | 26,610,100 | | $ | 613,265 | | $ | (17,588 | ) | $ | 619 | | $ | 596,296 | |
| Issuance of trust stock to manager | | | 433,001 | | | 12,088 | | | - | | | - | | | 12,088 | |
| Issuance of trust stock to independent directors | | | 7,644 | | | 191 | | | - | | | - | | | 191 | |
| Adjustment to offering costs | | | - | | | 427 | | | - | | | - | | | 427 | |
| Distributions to trust stockholders (comprising $1.5877 per share | | | | | | | | | | | | | | | - | |
| paid on 27,050,745 shares) | | | - | | | (42,948 | ) | | - | | | - | | | (42,948 | ) |
| Other comprehensive income (loss): | | | | | | | | | | | | | | | - | |
| Net income for the year ended December 31, 2005 | | | - | | | - | | | 15,196 | | | - | | | 15,196 | |
| Translation adjustment | | | - | | | - | | | - | | | (16,160 | ) | | (16,160 | ) |
| Unrealized gain on marketable securities | | | - | | | - | | | - | | | 2,106 | | | 2,106 | |
| Change in fair value of derivatives, net of taxes of $1,707 | | | - | | | - | | | - | | | 469 | | | 469 | |
| Total comprehensive income for the year ended | | | | | | | | | | | | | | | | |
| December 31, 2005 | | | | | | | | | | | | | | | 1,611 | |
| Balance at December 31, 2005 | | | 27,050,745 | | $ | 583,023 | | $ | (2,392 | ) | $ | (12,966 | ) | $ | 567,665 | |
| | | | | | | | | | | | | | | | | |
| Issuance of trust stock, net of offering costs | | | 10,350,000 | | | 291,104 | | | - | | | - | | | 291,104 | |
| Issuance of trust stock to manager | | | 145,547 | | | 4,134 | | | - | | | - | | | 4,134 | |
| Issuance of trust stock to independent directors | | | 15,873 | | | 450 | | | - | | | - | | | 450 | |
| Distributions to trust stockholders (comprising $0.50 per share | | | | | | | | | | | | | | | | |
| paid on 27,050,745 and 27,066,618 shares, $0.525 per share | | | | | | | | | | | | | | | | |
| paid on 27,212,165 shares and $0.55 per share paid on | | | | | | | | | | | | | | | | |
| 37,562,165 shares) | | | - | | | (14,478 | ) | | (47,526 | ) | | - | | | (62,004 | ) |
| Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
| Net income for the year ended December 31, 2006 | | | - | | | - | | | 49,918 | | | - | | | 49,918 | |
| Translation adjustment | | | - | | | - | | | - | | | 13,597 | | | 13,597 | |
| Translation adjustment reversed upon sale of foreign | | | | | | | | | | | | | | | | |
| investments | | | - | | | - | | | - | | | 1,708 | | | 1,708 | |
| Change in fair value of derivatives, net of taxes of $832 | | | - | | | - | | | - | | | 1,462 | | | 1,462 | |
| Change in fair value of derivatives reversed upon sale of | | | | | | | | | | | | | | | | |
| foreign investments | | | - | | | - | | | - | | | (1,927 | ) | | (1,927 | ) |
| Unrealized gain on marketable securities | | | - | | | - | | | - | | | 7,416 | | | 7,416 | |
| Realized gain on marketable securities | | | - | | | - | | | - | | | (9,285 | ) | | (9,285 | ) |
| Change in post-retirement benefit plans, net of taxes of $118 | | | - | | | - | | | - | | | 187 | | | 187 | |
| Total comprehensive income for the year ended | | | | | | | | | | | | | | | | |
| December 31, 2006 | | | | | | | | | | | | | | | 63,076 | |
| Balance at December 31, 2006 | | | 37,562,165 | | $ | 864,233 | | $ | - | | $ | 192 | | $ | 864,425 | |
| | | | | | | | | | | | | | | | | |
| Issuance of LLC interests, net of offering costs | | | 6,165,871 | | | 241,330 | | | - | | | - | | | 241,330 | |
| Issuance of LLC interests to manager | | | 1,193,475 | | | 43,962 | | | - | | | - | | | 43,962 | |
| Issuance of LLC interests to independent directors | | | 16,869 | | | 450 | | | - | | | - | | | 450 | |
| Distributions to trust stockholders and holders of LLC interests | | | | | | | | | | | | | | | - | |
| (comprising $0.57 per share paid on 37,562,165 shares, $0.59 | | | | | | | | | | | | | | | - | |
| per share paid on 37,562,165 shares, $0.605 per share paid on | | | | | | | | | | | | | | | - | |
| 43,766,877 shares and $0.62 per share paid on 44,938,380 shares) | | | - | | | (97,913 | ) | | - | | | - | | | (97,913 | ) |
| Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
| Net loss for the year ended December 31, 2007 | | | - | | | - | | | (52,054 | ) | | - | | | (52,054 | ) |
| Retained earnings adjustment relating to income taxes (FIN 48) | | | - | | | - | | | (401 | ) | | - | | | (401 | ) |
| Change in fair value of derivatives, net of taxes of $21,702 | | | - | | | - | | | - | | | (30,731 | ) | | (30,731 | ) |
| Reclassification of realized gains and losses of derivatives into | | | | | | | | | | | | | | | - | |
| earnings, net of taxes of $1,905 | | | - | | | - | | | - | | | (2,855 | ) | | (2,855 | ) |
| Change in post-retirement benefit plans, net of taxes of $218 | | | - | | | - | | | - | | | 339 | | | 339 | |
| Total comprehensive loss for the year ended | | | | | | | | | | | | | | | | |
| December 31, 2007 | | | | | | | | | | | | | | | (85,702 | ) |
| Balance at December 31, 2007 | | | 44,938,380 | | $ | 1,052,062 | | $ | (52,455 | ) | $ | (33,055 | ) | $ | 966,552 | |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| | Year Ended December 31, 2007 | | Year Ended December 31, 2006 | | Year Ended December 31, 2005 | |
| | | ($ in thousands) | |
Operating activities | | | | | | | |
| Net (loss) income | | $ | (52,054 | ) | $ | 49,918 | | $ | 15,196 | |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | | | | | | | | | | |
| Depreciation and amortization of property and equipment | | | 31,515 | | | 21,366 | | | 14,098 | |
| Amortization of intangible assets | | | 35,258 | | | 43,846 | | | 14,815 | |
| Equity in losses (earnings) and amortization charges of investees | | | 32 | | | (12,558 | ) | | (3,685 | ) |
| Equity distributions from investees | | | - | | | 8,265 | | | 3,685 | |
| Gain on sale of equity investment | | | - | | | (3,412 | ) | | - | |
| Gain on sale of investments | | | - | | | (49,933 | ) | | - | |
| Gain on sale of marketable securities | | | - | | | (6,738 | ) | | - | |
| Amortization of debt financing costs | | | 6,202 | | | 6,178 | | | 6,290 | |
| Non-cash derivative (gain) loss, net of non-cash interest expense | | | (2,563 | ) | | 5,879 | | | (4,166 | ) |
| Performance fees settled in trust stock and LLC interests | | | 43,962 | | | 4,134 | | | - | |
| Equipment lease receivable, net | | | 2,531 | | | 1,880 | | | 1,677 | |
| Deferred rent | | | 2,466 | | | 2,475 | | | 2,308 | |
| Deferred taxes | | | (22,255 | ) | | (14,725 | ) | | (5,695 | ) |
| Other non-cash expenses, net | | | 2,940 | | | 1,814 | | | 1,062 | |
| Non-operating losses relating to foreign investments | | | 3,437 | | | - | | | - | |
| Loss on extinguishment of debt | | | 27,512 | | | - | | | - | |
| Accrued interest expense on subordinated debt - related party | | | - | | | 1,087 | | | 1,003 | |
| Accrued interest income on subordinated debt - related party | | | - | | | (430 | ) | | (399 | ) |
| Changes in other assets and liabilities, net of acquisitions: | | | | | | | | | | |
| Restricted cash | | | (119 | ) | | 4,216 | | | (462 | ) |
| Accounts receivable | | | (12,263 | ) | | (5,330 | ) | | (7,683 | ) |
| Dividend receivable | | | - | | | 2,356 | | | (651 | ) |
| Inventories | | | (3,291 | ) | | 352 | | | (178 | ) |
| Prepaid expenses and other current assets | | | 675 | | | (4,601 | ) | | (39 | ) |
| Due to manager - related party | | | 1,453 | | | 1,647 | | | 2,419 | |
| Accounts payable and accrued expenses | | | 23,814 | | | (9,954 | ) | | 1,882 | |
| Income taxes payable | | | 5,006 | | | (3,213 | ) | | - | |
| Other, net | | | 2,292 | | | 1,846 | | | 267 | |
| Net cash provided by operating activities | | | 96,550 | | | 46,365 | | | 41,744 | |
| | | | | | | | | | | |
Investing activities | | | | | | | | | | |
| Acquisitions of businesses and investments, net of cash acquired | | | (704,171 | ) | | (845,085 | ) | | (182,427 | ) |
| Deferred costs on acquisitions | | | (18 | ) | | (279 | ) | | (14,746 | ) |
| Goodwill adjustment - cash received | | | - | | | - | | | 694 | |
| Costs of dispositions | | | (322 | ) | | - | | | - | |
| Proceeds from sale of equity investment | | | 84,904 | | | - | | | - | |
| Proceeds from sale of investment | | | 160 | | | 89,519 | | | - | |
| Proceeds from sale of marketable securities | | | - | | | 76,737 | | | - | |
| Collection on notes receivable | | | - | | | - | | | 358 | |
| Settlements of non-hedging derivative instruments | | | (2,530 | ) | | - | | | - | |
| Purchases of property and equipment | | | (50,877 | ) | | (18,409 | ) | | (6,743 | ) |
| Return of investment in unconsolidated business | | | 28,000 | | | 10,471 | | | 1,803 | |
| Proceeds received on subordinated loan - related party | | | - | | | 850 | | | 914 | |
| Other | | | 844 | | | - | | | - | |
| Net cash used in investing activities | | | (644,010 | ) | | (686,196 | ) | | (200,147 | ) |
| | | | | | | | | | | |
Financing activities | | | | | | | | | | |
| Proceeds from issuance of trust stock and LLC interests | | | 252,739 | | | 305,325 | | | - | |
| Contributions received from minority shareholders | | | - | | | - | | | 1,442 | |
| Proceeds from long-term debt | | | 1,356,625 | | | 537,000 | | | 390,742 | |
| Proceeds from line-credit facility | | | 11,560 | | | 455,957 | | | 850 | |
| Offering and equity raise costs | | | (11,392 | ) | | (14,220 | ) | | (1,844 | ) |
| Distributions paid to trust stockholders and holders of LLC interests | | | (97,913 | ) | | (62,004 | ) | | (42,948 | ) |
| Distributions paid to minority shareholders | | | (528 | ) | | (736 | ) | | (1,219 | ) |
| Payment of long-term debt | | | (904,654 | ) | | (638,356 | ) | | (197,170 | ) |
| Debt financing costs | | | (26,247 | ) | | (14,217 | ) | | (11,350 | ) |
| Make-whole payment on debt refinancing | | | (14,695 | ) | | - | | | - | |
| Restricted cash | | | 4,303 | | | (4,228 | ) | | (2,362 | ) |
| Payment of notes and capital lease obligations | | | (2,252 | ) | | (2,193 | ) | | (1,605 | ) |
| Acquisition of swap contract | | | - | | | - | | | (689 | ) |
| Net cash provided by financing activities | | | 567,546 | | | 562,328 | | | 133,847 | |
| | | | | | | | | | | |
| Effect of exchange rate changes on cash | | | (1 | ) | | (272 | ) | | (331 | ) |
| | | | | | | | | | | |
| Net change in cash and cash equivalents | | | 20,085 | | | (77,775 | ) | | (24,887 | ) |
| | | | | | | | | | | |
| Cash and cash equivalents, beginning of year | | | 37,388 | | | 115,163 | | | 140,050 | |
| | | | | | | | | | | |
| Cash and cash equivalents, end of year | | $ | 57,473 | | $ | 37,388 | | $ | 115,163 | |
| | | | | | | | | | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | |
| Non-cash investing and financing activities: | | | | | | | | | | |
| | | | | | | | | | | |
| Accrued acquisition and equity offering costs | | $ | 1,208 | | $ | 3 | | $ | - | |
| | | | | | | | | | | |
| Accrued purchases of property and equipment | | $ | 1,647 | | $ | 1,438 | | $ | 384 | |
| | | | | | | | | | | |
| Acquisition of equipment through capital leases | | $ | 30 | | $ | 2,331 | | $ | 3,270 | |
| | | | | | | | | | | |
| Issuance of trust stock and LLC interests to manager for payment of performance fees | | $ | 43,962 | | $ | 4,134 | | $ | 12,088 | |
| | | | | | | | | | | |
| Issuance of trust stock and LLC interests to independent directors | | $ | 450 | | $ | 269 | | $ | 191 | |
| | | | | | | | | | | |
| Taxes paid | | $ | 3,784 | | $ | 1,835 | | $ | 2,610 | |
| | | | | | | | | | | |
| Interest paid | | $ | 92,835 | | $ | 65,967 | | $ | 30,902 | |
A reconciliation of net (loss) income to EBITDA, on a consolidated basis is provided below:
| | | Year Ended December 31, | | Change (from 2006 to 2007) | | Change (from 2005 to 2006) | |
| | | 2007 | | 2006 | | 2005 | | $ | | % | | $ | | % | |
| | | ($ in thousands) | |
| | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (52,054 | ) | $ | 49,918 | | $ | 15,196 | | | (101,972 | ) | | NM | | | 34,722 | | | NM | |
| Interest expense, net | | | 75,690 | | | 72,859 | | | 29,736 | | | (2,831 | ) | | (3.9 | ) | | (43,123 | ) | | (145.0 | ) |
| Income tax benefit | | | (16,483 | ) | | (16,421 | ) | | (3,615 | ) | | 62 | | | 0.4 | | | 12,806 | | | NM | |
| Depreciation (1) | | | 20,502 | | | 12,102 | | | 6,007 | | | (8,400 | ) | | (69.4 | ) | | (6,095 | ) | | (101.5 | ) |
| Depreciation - cost of services (1) | | | 11,013 | | | 9,264 | | | 8,091 | | | (1,749 | ) | | (18.9 | ) | | (1,173 | ) | | (14.5 | ) |
| Amortization (2) | | | 35,258 | | | 43,846 | | | 14,815 | | | 8,588 | | | 19.6 | | | (29,031 | ) | | (196.0 | ) |
| EBITDA | | $ | 73,926 | | $ | 171,568 | | $ | 70,230 | | | (97,642 | ) | | (56.9 | ) | | 101,338 | | | 144.3 | |
(1) Depreciation - cost of services includes depreciation expense for our district energy business and airport parking business, which are reported in cost of services in our consolidated statements of operations. Depreciation and Depreciation - cost of services does not include step-up depreciation expense of $6.9 million and $4.6 million in connection with our investment in IMTT for the years ended December 31, 2007 and 2006, respectively, which is reported in equity in (losses) earnings and amortization charges of investees in our statements of operations.
(2) Does not include step-up amortization expense related to intangible assets in connection with our investment in IMTT of $1.1 million and $756,000 for the years ended December 31, 2007 and 2006, respectively. Also, does not include step-up amortization expense related to intangible assets in connection with our prior investment in the toll road business of $3.9 million and $3.8 million for years ended December 31, 2006 and 2005, respectively. These are both reported in equity in (losses) earnings and amortization charges of investees in our statements of operations.
A reconciliation of EBITDA to net (loss) income, on a segment basis, and contribution margin to revenue for the gas production and distribution business is provided below.
Note: All $ are in millions. Totals may not foot due to rounding. | | | | | | | | | | | | | | | |
| | | | |
AIRPORT SERVICES BUSINESS | | Quarter Ended December 31, 2007 | |
| | | Existing Locations | | | | Total | |
| | 2007 | | 2006 | | Change | | Acquisitions | | 2007 | | 2006 | | Change | |
| | $ | | $ | | % | | $ | | $ | | $ | | % | |
| | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | |
| Fuel | | | 78.14 | | | 67.91 | | | 15.1 | | | 45.07 | | | 123.20 | | | 67.93 | | | 81.4 | |
| Non-Fuel | | | 31.38 | | | 28.23 | | | 11.1 | | | 32.64 | | | 64.01 | | | 28.23 | | | 126.7 | |
Total Revenue | | | 109.51 | | | 96.14 | | | 13.9 | | | 77.70 | | | 187.22 | | | 96.16 | | | 94.7 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Gross Profit | | | | | | | | | | | | | | | | | | | | | | |
| Fuel | | | 26.97 | | | 27.03 | | | (0.2 | ) | | 8.60 | | | 35.57 | | | 27.03 | | | 31.6 | |
| Non-Fuel | | | 28.05 | | | 25.74 | | | 9.0 | | | 26.53 | | | 54.58 | | | 25.74 | | | 112.1 | |
Total Gross Profit | | | 55.02 | | | 52.77 | | | 4.3 | | | 35.13 | | | 90.14 | | | 52.76 | | | 70.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Loss on Extinguishment of Debt | | | (6.95 | ) | | - | | | NM | | | (2.85 | ) | | (9.80 | ) | | - | | | NM | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Unrealized Gains (Losses) on Derivatives | | | 0.12 | | | (2.05 | ) | | 106.0 | | | 0.25 | | | 0.37 | | | (2.05 | ) | | 118.1 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Loss on disposal (included in other expense) | | | (0.76 | ) | | - | | | NM | | | - | | | (0.76 | ) | | - | | | NM | |
| | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of net income (loss) to EBITDA | | | | | | | | | | | | | | | | | | | | | | |
Net Income (loss) | | | (2.74 | ) | | 6.48 | | | | | | (0.31 | ) | | (3.05 | ) | | 6.48 | | | | |
| Interest Expense, Net | | | 10.29 | | | 4.07 | | | | | | 4.10 | | | 14.39 | | | 4.07 | | | | |
| Provision (benefit) for income taxes | | | (1.80 | ) | | 1.71 | | | | | | (0.21 | ) | | (2.00 | ) | | 1.71 | | | | |
| Depreciation and amortization | | | 9.59 | | | 8.36 | | | | | | 7.19 | | | 16.78 | | | 8.36 | | | | |
EBITDA | | | 15.33 | | | 20.62 | | | (25.6 | ) | | 10.77 | | | 26.12 | | | 20.62 | | | (26.7 | ) |
| | | | |
| | | Year Ended December 31, 2007 | |
| | Existing Locations | | | | Total | |
| | 2007 | | 2006 | | Change | | Acquisitions | | 2007 | | 2006 | | Change | |
| | $ | | | | % | | $ | | | | $ | | | |
| | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | |
| Fuel | | | 237.85 | | | 225.57 | | | 5.4 | | | 133.40 | | | 371.25 | | | 225.57 | | | 64.6 | |
| Non-Fuel | | | 101.66 | | | 87.31 | | | 16.4 | | | 61.43 | | | 163.09 | | | 87.31 | | | 86.8 | |
Total Revenue | | | 339.51 | | | 312.88 | | | 8.5 | | | 194.83 | | | 534.34 | | | 312.88 | | | 70.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Gross Profit | | | | | | | | | | | | | | | | | | | | | | |
| Fuel | | | 92.38 | | | 87.69 | | | 5.4 | | | 41.76 | | | 134.14 | | | 87.69 | | | 53.0 | |
| Non-Fuel | | | 92.02 | | | 78.81 | | | 16.8 | | | 50.50 | | | 142.52 | | | 78.81 | | | 80.8 | |
Total Gross Profit | | | 184.41 | | | 166.49 | | | 10.8 | | | 92.25 | | | 276.66 | | | 166.49 | | | 66.2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Loss on Extinguishment of Debt | | | (6.95 | ) | | - | | | NM | | | (2.85 | ) | | (9.80 | ) | | - | | | NM | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Unrealized Gains (Losses) on Derivatives | | | (1.91 | ) | | (2.42 | ) | | 21.1 | | | 0.25 | | | (1.66 | ) | | (2.42 | ) | | 31.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Loss on disposal (included in other expense) | | | (0.76 | ) | | - | | | NM | | | - | | | (0.76 | ) | | - | | | NM | |
| | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of net income to EBITDA | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | | 11.85 | | | 13.53 | | | | | | 1.21 | | | 13.06 | | | 13.53 | | | | |
| Interest Expense, Net | | | 28.30 | | | 25.66 | | | | | | 14.26 | | | 42.56 | | | 25.66 | | | | |
| Provision for income taxes | | | 7.78 | | | 6.30 | | | | | | 0.80 | | | 8.58 | | | 6.30 | | | | |
| Depreciation and amortization | | | 26.34 | | | 25.28 | | | | | | 18.42 | | | 44.75 | | | 25.28 | | | | |
EBITDA | | | 74.27 | | | 70.77 | | | 4.9 | | | 36.69 | | | 108.96 | | | 70.77 | | | 53.9 | |
BULK LIQUID STORAGE BUSINESS | | | | | | | | | | | | | |
| | | Quarter Ended December 31, 2007 | | Year Ended December 31, 2007 | |
| | 2007 | | 2006 | | Change | | 2007 | | 2006 | | Change | |
| | $ | | | | % | | $ | | | | % | |
| | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | |
| Terminal | | | 69.27 | | | 54.55 | | | 27.0 | | | 250.73 | | | 206.87 | | | 21.2 | |
| Enviromental Response | | | 5.97 | | | 3.50 | | | 70.7 | | | 24.46 | | | 18.60 | | | 31.5 | |
Total Revenue | | | 75.24 | | | 58.05 | | | 29.6 | | | 275.20 | | | 225.47 | | | 22.1 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Profit | | | | | | | | | | | | | | | | | | | |
| Terminal | | | 31.76 | | | 28.17 | | | 12.7 | | | 115.01 | | | 94.77 | | | 21.3 | |
| Environmental Response | | | 1.16 | | | 0.78 | | | 49.7 | | | 5.13 | | | 6.66 | | | (23.0 | ) |
Total Gross Profit | | | 32.92 | | | 28.95 | | | 13.7 | | | 120.13 | | | 101.43 | | | 18.4 | |
| | | | | | | | | | | | | | | | | | | | |
| Loss on Extinguishment of Debt | | | 0.00 | | | 0.00 | | | NM | | | (12.34 | ) | | 0.00 | | | NM | |
| | | | | | | | | | | | | | | | | | | | |
| Unrealized Gains (Losses) on Derivatives | | | (12.98 | ) | | 0.56 | | | NM | | | (21.02 | ) | | 1.93 | | | NM | |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of net income to EBITDA | | | | | | | | | | | | | | | | | | | |
Net Income | | | 0.98 | | | 5.52 | | | | | | 9.63 | | | 20.61 | | | | |
| Interest Expense, Net | | | 3.74 | | | 3.41 | | | | | | 14.35 | | | 15.76 | | | | |
| Provision for income taxes | | | (0.03 | ) | | 5.98 | | | | | | 7.08 | | | 16.56 | | | | |
| Depreciation and Amortization | | | 9.55 | | | 8.29 | | | | | | 36.03 | | | 31.06 | | | | |
EBITDA | | | 14.24 | | | 23.21 | | | (39.6 | ) | | 67.08 | | | 83.99 | | | (20.1 | ) |
| | | | | | | | | | | | | | |
GAS PRODUCTION AND DISTRIBUTION BUSINESS | | | | | | | | | | | | | |
| | | Quarter Ended December 31, 2007 | | Year Ended December 31, 2007 | |
| | 2007 | | 2006 | | Change | | 2007 | | 2006 | | Change | |
| | $ | | | | % | | $ | | | | % | |
| | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | |
| Utility | | | 26.79 | | | 24.04 | | | 11.4 | | | 95.77 | | | 93.60 | | | 2.3 | |
| Non-utility | | | 20.57 | | | 16.64 | | | 23.6 | | | 74.60 | | | 67.26 | | | 10.9 | |
Total Revenue | | | 47.36 | | | 40.68 | | | 16.4 | | | 170.37 | | | 160.86 | | | 5.9 | |
| | | | | | | | | | | | | | | | | | | | |
Cost of Revenue | | | | | | | | | | | | | | | | | | | |
| Utility | | | 18.51 | | | 15.85 | | | (16.8 | ) | | 64.37 | | | 63.22 | | | (1.8 | ) |
| Non-utility | | | 12.83 | | | 9.67 | | | (32.6 | ) | | 44.91 | | | 40.03 | | | (12.2 | ) |
Total Cost of Revenue | | | 31.34 | | | 25.53 | | | (22.8 | ) | | 109.28 | | | 103.25 | | | (5.8 | ) |
| | | | | | | | | | | | | | | | | | | | |
Contribution Margin | | | | | | | | | | | | | | | | | | | |
| Utility | | | 8.28 | | | 8.19 | | | 1.1 | | | 31.40 | | | 30.38 | | | 3.4 | |
| Non-utility | | | 7.74 | | | 6.97 | | | 11.1 | | | 29.69 | | | 27.23 | | | 9.0 | |
Total Contribution Margin | | | 16.02 | | | 15.16 | | | 5.7 | | | 61.09 | | | 57.61 | | | 6.0 | |
| | | | | | | | | | | | | | | | | | | | |
| Production | | | 1.24 | | | 1.32 | | | 6.6 | | | 4.91 | | | 4.72 | | | (4.1 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Transmission and Distribution | | | 4.62 | | | 3.68 | | | (25.4 | ) | | 15.35 | | | 14.11 | | | (8.8 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Unrealized Gains (Losses) on Derivatives | | | (0.03 | ) | | 0.24 | | | 114.4 | | | (0.43 | ) | | (3.72 | ) | | 88.4 | |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of income before taxes to EBITDA | | | | | | | | | | | | | | | | | | | |
Income before taxes | | | 2.08 | | | 2.62 | | | | | | 7.96 | | | 2.59 | | | | |
| Interest Expense, Net | | | 2.38 | | | 2.26 | | | | | | 9.20 | | | 8.67 | | | | |
| Depreciation and amortization | | | 1.69 | | | 1.65 | | | | | | 6.74 | | | 6.09 | | | | |
EBITDA | | | 6.16 | | | 6.53 | | | 5.6 | | | 23.89 | | | 17.35 | | | 37.7 | |
DISTRICT ENERGY | | | | | | | | | | | | | |
| | | Quarter Ended December 31, 2007 | | Year Ended December 31, 2007 | |
| | 2007 | | 2006 | | Change | | 2007 | | 2006 | | Change | |
| | $ | | | | % | | $ | | | | % | |
| | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | |
| Capacity | | | 4.78 | | | 4.56 | | | 4.9 | | | 18.85 | | | 17.41 | | | 8.3 | |
| Consumption | | | 3.45 | | | 2.05 | | | 68.4 | | | 22.88 | | | 17.90 | | | 27.8 | |
| Lease and Other | | | 1.98 | | | 2.05 | | | (3.4 | ) | | 7.78 | | | 8.28 | | | (6.1 | ) |
Total Revenue | | | 10.22 | | | 8.66 | | | 18.0 | | | 49.51 | | | 43.59 | | | 13.6 | |
| | | | | | | | | | | | | | | | | | | | |
Direct Expenses | | | | | | | | | | | | | | | | | | | |
| Electricity | | | 2.57 | | | 1.58 | | | (62.2 | ) | | 15.42 | | | 12.25 | | | (26.0 | ) |
| Other | | | 4.55 | | | 4.28 | | | (6.4 | ) | | 17.70 | | | 17.16 | | | (3.1 | ) |
Total Direct Expenses | | | 7.12 | | | 5.86 | | | (21.4 | ) | | 33.12 | | | 29.41 | | | (12.6 | ) |
| | | | | | | | | | | | | | | | | | | | |
Gross Profit | | | 3.10 | | | 2.80 | | | 10.7 | | | 16.39 | | | 14.18 | | | 15.6 | |
| | | | | | | | | | | | | | | | | | | | |
| Extinguishment of Debt | | | - | | | - | | | NM | | | (17.71 | ) | | - | | | NM | |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of net income (loss) to EBITDA | | | | | | | | | | | | | | | | | | | |
Net Income (loss) | | | 6.14 | | | 0.40 | | | | | | (9.26 | ) | | 1.10 | | | | |
| Interest Expense, Net | | | 2.51 | | | 2.05 | | | | | | 9.01 | | | 8.33 | | | | |
| Provision (benefit) for income taxes | | | (6.86 | ) | | (1.33 | ) | | | | | (5.49 | ) | | (1.10 | ) | | | |
| Depreciation and amortization | | | 1.82 | | | 1.78 | | | | | | 7.16 | | | 7.08 | | | | |
EBITDA | | | 3.61 | | | 2.90 | | | 24.5 | | | 1.42 | | | 15.41 | | | (90.8 | ) |
AIRPORT PARKING | | | | | | | | | | | | | |
| | | Quarter Ended December 31, 2007 | | Year Ended December 31, 2007 | |
| | 2007 | | 2006 | | Change | | 2007 | | 2006 | | Change | |
| | $ | | | | % | | $ | | | | % | |
| | | | | | | | | | | | | | |
Total Revenue | | | 18.89 | | | 19.14 | | | (1.3 | ) | | 77.18 | | | 76.06 | | | 1.5 | |
Direct Expenses | | | 15.91 | | | 13.98 | | | (13.8 | ) | | 59.52 | | | 54.64 | | | (8.9 | ) |
Gross Profit | | | 2.98 | | | 5.17 | | | (42.3 | ) | | 17.66 | | | 21.43 | | | (17.6 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Unrealized Gains (Losses) on Derivatives | | | 0.08 | | | (0.93 | ) | | NM | | | 0.14 | | | (0.72 | ) | | NM | |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of net (loss) income to EBITDA | | | | | | | | | | | | | | | | | | | |
Net (loss) Income | | | (1.94 | ) | | (13.30 | ) | | | | | (4.81 | ) | | (14.38 | ) | | | |
| Interest Expense, Net | | | 4.02 | | | 3.96 | | | | | | 16.04 | | | 17.05 | | | | |
| Provision for income taxes | | | (1.55 | ) | | (11.58 | ) | | | | | (3.83 | ) | | (12.36 | ) | | | |
| Depreciation and amortization | | | 2.64 | | | 25.16 | | | | | | 8.12 | | | 29.12 | | | | |
EBITDA | | | 3.17 | | | 4.25 | | | (25.3 | ) | | 15.52 | | | 19.42 | | | (20.1 | ) |
