Exhibit 99.1
Macquarie Infrastructure Company Reports Second Quarter 2009 Financial Results
Energy-Related Businesses Continue Strong Performance
Airport Services Reflects Stabilizing General Aviation Environment
Net Loss of $29.0 Million Includes Non-Cash Impairment Charges of $58.3 Million and Non-Cash Derivative Gains of $19.7 Million
NEW YORK--(BUSINESS WIRE)--August 6, 2009--Macquarie Infrastructure Company (NYSE: MIC), reported its financial results for the second quarter of 2009 including 4% growth in the amount of cash generated by its businesses. MIC also provided guidance to the market that:
- Cash generated by its gas production and distribution and bulk liquid storage businesses for 2009 would be higher than previously anticipated due to improved operating results and lower capital expenditures;
- Flight activity by general aviation jet aircraft appears to be stabilizing and, combined with the benefits of a cost reduction program at MIC’s airport services business, reaffirms management’s belief that no additional capital will be required by this business; and,
- Its holding company level debt, including the refinance of any balance remaining at the existing March 2010 maturity date, would be fully repaid by the end of 2010, a year earlier than had been forecast at its shareholder meeting in June.
Cash generation was driven by strong performance at MIC’s gas production and distribution and bulk liquid storage businesses. Rate increases on contract renewals along with capital expenditure management drove improved performance at the bulk liquid storage business. Continued solid performance at the gas production and distribution business was attributed primarily to successful margin management in its non-utility operations. The Company’s energy-related businesses have proven, to date, largely resistant to the economic downturn, primarily due to the contracted or utility-like nature of their revenues combined with the essential services they provide.
Results for the airport services business reflect a stabilizing level of general aviation activity overall. General aviation jet flight movements, as measured by take-offs and landings, have been declining throughout the past year, although the rate of decline slowed in the second quarter. Quarterly gross profit reflected a normal decline associated with seasonal reductions in de-icing services and activity at recreational destinations. The decrease in cash generation was partially offset by additional reductions in selling, general and administrative expenses.
MIC reported a net loss of $29.0 million for the quarter. The quarterly earnings again reflect a number of non-cash items including:
- a $58.3 million of pre-tax non-cash impairments in its airport services business that were a result of a decline in the value of certain sites within the airport services business due to lower levels of activity at those locations; partially offset by,
- a net $19.7 million of non-cash gains in the value of interest rate hedges.
Through six months MIC reported a net loss of $82.0 million.
“While there is much more work to be done to increase shareholder value, I am pleased with the progress made in the second quarter,” said James Hooke, Chief Executive Officer of MIC. “Our businesses continue to generate attractive amounts of cash and we are using the cash to reduce indebtedness and to take advantage of growth opportunities in our bulk liquid storage business.”
MIC recorded consolidated revenue for the second quarter of 2009 of $180.8 million compared with $286.5 million in 2008. The 37% decrease was primarily the result of lower cost of jet fuel in 2009 versus 2008. The lower cost of jet fuel was also a substantial contributor to a decline in revenue of 35% for the six month period. Year to date revenue through June 30, 2009 totaled $365.0 million.
An analysis of gross profit removes the volatility in revenue associated with costs that are typically passed through to customers of infrastructure businesses. Gross profit for the quarter decreased 16% to $90.4 million from $108.1 million in 2008. The decline in gross profit was driven by a reduction in the volume of jet fuel sold compared with the same period in 2008, partially offset by margin expansion in certain businesses. Gross profit for the six months ended June 30 of $178.9 million was 19% lower than the first half of 2008.
The Company believes that its financial results under Generally Accepted Accounting Principles (“GAAP”) alone do not reflect all of the items that management considers in estimating the amount of cash available to reduce debt, make distributions or reinvest in growth projects. As a result MIC discloses “cash available before debt reduction” (“CADR”). The estimation of CADR begins with cash from operations and adjusts for changes in working capital and certain items of dividend income and cash expenditures for the quarter and year to date periods. Results for the Company’s airport parking business have been excluded from both periods as management is pursuing a number of strategic alternatives including a sale of the business, a restructuring or a filing for protection under bankruptcy laws.
MIC’s CADR for the second quarter totaled $31.2 million compared with $30.1 million on the same basis in the second quarter of 2008. The increase in CADR is primarily the result of improved performance at the Company’s bulk liquid storage and gas production and distribution businesses.
Cash Generation
The tables below summarize MIC’s CADR, by segment, for the quarter and year to date periods ended June 30, 2009. CADR for the second quarter of 2009 increased by approximately 4% compared with cash available for distribution reported in second quarter of 2008.
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| QTD CADR at June 30, 2009 ($ Millions) | | Airport Services | | | District Energy | | | TGC | | | MIC LLC | | | Total | | | Parking |
| Cash from operations | | 8.3 | | | 3.0 | | | 4.0 | | | 6.4 | | | 21.7 | | | -1.6 |
| Working capital | | 1.8 | | | 0.2 | | | 0.2 | | | -5.3 | | | -3.1 | | | -0.4 |
| Cash from operations adjustments | | 0.8 | | | -0.1 | | | 1.5 | | | -1.7 | | | 0.5 | | | 0.2 |
| Cash from investing and financing activities | | -0.9 | | | 0.0 | | | -0.4 | | | 13.4 | | | 12.1 | | | -0.5 |
| Total cash available before debt reduction | | 10.0 | | | 3.1 | | | 5.3 | | | 12.8 | | | 31.2 | | | -2.3 |
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CADR includes the cash generated and retained by the bulk liquid storage business for the funding of previously approved growth capital expenditures. MIC’s 50% interest in this CADR is shown in the “MIC LLC” column above as a $13.4 million component of cash from investing and financing activities and a $1.5 million component of cash from operations.
Of the $10.0 million in CADR generated by the airport services business during the second quarter, $8.0 million was applied to the pre-payment of the business’ debt facility and $0.8 million was applied to the payment of related interest rate swap breakage fees.
A combined $8.4 million, or $0.19 per share, of CADR was generated by the district energy and gas production and distribution businesses in the second quarter. This cash, along with cash retained during the first quarter, is available to repay a portion of the debt outstanding under the MIC Inc. revolving credit facility.
CADR is also adjusted for changes in working capital since these effects are believed to be temporary. For the quarter these adjustments decreased CADR by approximately $3.1 million.
Cash from investing and financing adjustments recorded in the Total column include a net $4.9 million of cash capital expenditures and a $1.6 million tax adjustment attributable to the gas production and distribution business.
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| YTD CADR at June 30, 2009 ($ Millions) | | Airport Services | | | District Energy | | | TGC | | | MIC LLC | | | Total | | | Parking |
| Cash from operations | | 20.0 | | | 4.8 | | | 10.2 | | | 4.7 | | | 39.7 | | | -2.9 |
| Working capital | | -4.7 | | | 0.3 | | | 1.7 | | | -1.5 | | | -4.2 | | | -0.7 |
| Cash from operations adjustments | | 0.9 | | | -0.2 | | | 1.6 | | | -1.6 | | | 0.7 | | | 0.2 |
| Cash from investing and financing activities | | 2.8 | | | 0.0 | | | -1.2 | | | 18.1 | | | 19.7 | | | -1.1 |
| Total cash available before debt reduction | | 19.0 | | | 4.9 | | | 12.3 | | | 19.7 | | | 55.9 | | | -4.5 |
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Through six months the amount of cash available before debt reduction declined by 10% compared with the first half of 2008.
MIC believes that disclosure of EBITDA excluding non-cash items for the Company and each of its operating segments, individually and in consolidation, is meaningful in that it is a key metric relied on by management in evaluating the performance of these entities. EBITDA excluding non-cash items is defined as net income (loss) before interest, taxes, depreciation and amortization and non-cash items, principally goodwill impairments and unrealized gains and losses on derivative instruments. The presentation of EBITDA excluding non-cash items provides additional insight into the performance of the operating companies and their ability to service or reduce debt, to fund existing growth capital projects and/or support distributions up to the MIC holding company.
For the quarter and six months ended June 30, 2008, MIC reported EBITDA. The following tables, reflecting results of operations for the Company’s businesses for the quarter and six months ended June 30, 2008, have been conformed to current period's presentation reflecting EBITDA excluding non-cash items.
Energy-Related Businesses
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Bulk Liquid Storage Terminal Business |
| ($000) | | | | 2Q’09 | | | | 2Q’08 | | | | %Change | | | | 1H’09 | | | | 1H’08 | | | | %Change |
| Terminal Revenue | | | | 77,752 | | | | 72,899 | | | | 6.7 | | | | 161,562 | | | | 147,123 | | | | 9.8 |
Terminal Gross Profit | | | | 39,738 | | | | 33,456 | | | | 18.8 | | | | 85,099 | | | | 69,138 | | | | 23.1 |
EBITDA excluding
non-cash items* | | | | 33,165 | | | | 29,552 | | | | 12.2 | | | | 71,946 | | | | 59,557 | | | | 20.8 |
* See attached tables for a reconciliation of EBITDA excluding non-cash items to net income |
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Terminal revenue and terminal gross profit increased as a result of an 8% increase in average storage rates and increases in rented storage capacity resulting from tank construction projects completed in the second half of 2008.
Cash flow from operating activities through the second quarter increased to $66.8 million from $41.6 million in 2008. Excess cash flows generated in both the quarter and year to date periods were retained for reinvestment in approved growth projects.
Maintenance and environmental capital expenditures totaled $8.4 million and $16.7 million for the quarter and year to date periods, respectively. The business has revised its forecast spend on maintenance capital expenditures for the full-year 2009 to approximately $55.0 million, from $65.0 to $67.0 million. The decrease reflects primarily the deferral of certain infrastructure-related projects, as well as a deferral of a small number of tank cleanings and inspections.
The business has received a commitment letter for a $30.0 million term loan from a U.S. bank. The commitment is subject to final documentation, completion of due diligence and satisfaction of customary closing conditions. The proceeds of the loan would be used to fund a portion of the growth projects currently underway in the business. The key provisions of the debt would include an interest rate margin of an average of 4.0% over LIBOR and a maturity of June 2012. The bank, in its capacity as agent, may also syndicate up to an additional $170.0 million of financing on the same terms, for a potential total of $200.0 million of proceeds.
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Gas Production and Distribution Business |
| ($000) | | | | 2Q’09 | | | | 2Q’08 | | | | % Change | | | | 1H’09 | | | | 1H’08 | | | | % Change |
| Revenue | | | | 39,804 | | | | 55,581 | | | | (28.4) | | | | 81,046 | | | | 107,939 | | | | (24.9) |
| Gross Profit | | | | 13,471 | | | | 11,316 | | | | 19.0 | | | | 28,095 | | | | 22,704 | | | | 23.7 |
EBITDA excluding
non-cash items* | | | | 7,909 | | | | 6,994 | | | | 13.1 | | | | 17,663 | | | | 14,040 | | | | 25.8 |
* See attached tables for a reconciliation of EBITDA excluding non-cash items to net income |
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The Company’s gas production and distribution business received interim approval of its August 2008 rate case from the Hawaii Public Utilities Commission during the quarter. The approval allowed the business to commence billing utility customers at new rates on June 11, 2009 and thereafter. The new rates are expected to generate an additional $9.5 million in revenue annually. The rate increase was the first for the utility portion of the business since 2001.
The year on year increase in gross profit was primarily the result of improved contribution margin in the unregulated operations generated by a stable customer base and falling LPG prices.
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District Energy Business |
| ($000) | | | | 2Q’09 | | | | 2Q’08 | | | | % Change | | | | 1H’09 | | | | 1H’08 | | | | % Change |
| Revenue | | | | 12,560 | | | | 12,797 | | | | (1.9) | | | | 21,633 | | | | 21,297 | | | | 1.6 |
| Gross Profit | | | | 4,268 | | | | 4,721 | | | | (9.6) | | | | 6,973 | | | | 7,342 | | | | (5.0) |
EBITDA excluding
non-cash items* | | | | 4,925 | | | | 5,332 | | | | (7.6) | | | | 8,337 | | | | 8,356 | | | | (0.2) |
* See attached tables for a reconciliation of EBITDA excluding non-cash items to net income |
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Capacity revenue, based on the number of tons of cooling under contract, grew with an increase in the number of customers connected to the system and the step-up in inflation-linked rate escalators over the prior comparable period.
A cooler second quarter this year compared with 2008 reduced cooling demand and consumption revenue and contributed to a decrease in gross profit. The cooler summer in Chicago is likely to result in lower full-year gross profit, although the impact on EBITDA excluding non-cash items is expected to be mitigated by associated reductions in maintenance and repairs.
Aviation-Related Businesses
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Airport Services |
| ($000) | | | | 2Q’09 | | | | 2Q’08 | | | | % Change | | | | 1H’09 | | | | 1H’08 | | | | % Change |
| Revenue | | | | 111,044 | | | | 198,745 | | | | (44.1) | | | | 228,225 | | | | 397,695 | | | | (42.6) |
| Gross Profit | | | | 68,799 | | | | 87,963 | | | | (21.8) | | | | 143,810 | | | | 183,231 | | | | (21.5) |
EBITDA excluding
non-cash items* | | | | 26,145 | | | | 35,981 | | | | (27.3) | | | | 51,114 | | | | 76,608 | | | | (33.3) |
* See attached tables for a reconciliation of EBITDA excluding non-cash items to net income |
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The sequential decline in gross profit (2Q’09 compared with 1Q’09) reflects normal seasonal shifts in activity at recreational destinations and reduced de-icing services partially offset by additional expense reductions. Annualized savings now exceed $27.0 million relative to a normalized second quarter of 2008.
General aviation jet aircraft flight movements at the 68 airports at which the airport services business operates decreased by approximately 22% during the second quarter of 2009 compared with the second quarter of 2008. Industry-wide, general aviation flight movements declined by over 25% during the same period, according to data compiled by the Federal Aviation Administration.
The volume of general aviation jet fuel sold by the business declined by 22% in the second quarter of 2009 compared with the second quarter of 2008. Weighted average margins on fuel sales decreased 1.5% in the quarter, although margins on retail sales increased slightly. The decline reflects, in part, an increase in the proportion of fuel sales to base tenants who typically have agreements to buy fuel at a discount compared with transient aircraft.
The airport services business generated $10.0 million of CADR in the second quarter. In June, approximately $8.0 million of CADR, after interest rate swap breakage fees of $0.8 million, was used to reduce the business’ term loan principal. The business made an additional $6.0 million pre-payment of loan principal and paid swap breakage fees of $0.6 million during the first week of August using excess cash on its balance sheet.
Year to date the business has reduced the principal on its term loan facility by $66.6 million. Including the August pre-payment the ratio of debt to EBITDA , as adjusted, (leverage, as defined in the term loan agreement) of the airport services business is 7.67 times compared with a maximum allowable under its debt facility of 8.25 times.
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Airport Parking Business |
| ($000) | | | | 2Q’09 | | | | 2Q’08 | | | | % Change | | | | 1H’09 | | | | 1H’08 | | | | % Change |
| Revenue | | | | 17,439 | | | | 19,420 | | | | (10.2) | | | | 34,046 | | | | 38,315 | | | | (11.1) |
| Gross Profit | | | | 3,826 | | | | 4,076 | | | | (6.1) | | | | 47 | | | | 7,394 | | | | (99.4) |
EBITDA excluding
non-cash items* | | | | 2,840 | | | | 2,715 | | | | 4.6 | | | | 4,591 | | | | 5,105 | | | | (10.1) |
* See attached tables for a reconciliation of EBITDA excluding non-cash items to net income |
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Lot utilization, as measured by the number of cars exiting the airport parking business’ facilities, declined 8.5% compared with the second quarter in 2008 and 14.3% year to date. The decline in volume and revenue was partially offset by a fractional increase in average revenue per car in the quarter and an approximately 8% increase in the first half year.
A year over year decline in gross profit was partially offset by decreased rent expense resulting from the purchase of a previously leased property in the first quarter of 2008.
The airport parking business does not have sufficient liquidity or capital resources to pay the aggregate principal amount of its maturing debt obligations and is not expected to be able to refinance its primary debt facility when it matures in September of 2009. MIC does not intend to contribute additional capital to this business other than potentially via obligations that it has guaranteed. Without substantial concessions from its lenders it is likely that this business will default on its obligations and there is doubt regarding the business’ ability to continue as a going concern.
The airport parking business’ impact on MIC going forward is limited to approximately $6.2 million comprising an estimated $0.8 million final interest rate swap guarantee payment and potential payments under a single lease agreement of up to an estimated $5.4 million.
Impairment of Certain Intangible and Long-Lived Assets
MIC recorded non-cash pre-tax impairment charges in the second quarter of 2009 of $58.3 million to write down the carrying value of certain intangible and long-lived assets and a portion of the goodwill related to its airport services business in accordance with Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets” (“SFAS No. 142”) and Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS No. 144”). These standards require the Company to evaluate intangible assets and long-lived assets for impairment whenever a triggering event occurs.
Per SFAS No. 142 and SFAS No. 144, the Company is required to consider the fair value of its reporting units in its evaluation of impairment. Factors considered in determining fair value for purposes of SFAS 142 include, among other things, the Company’s market capitalization as determined by quoted market prices for its common stock, market values of the Company’s reporting units based on common market multiples for comparable companies, estimations of future discounted cash flows and discount rates that appropriately reflect not only the Company’s businesses, but also the current overall macroeconomic environment.
The Company will continue to monitor the valuation of goodwill, intangibles and other long-lived assets in light of prevailing market conditions.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 11:00 a.m. Eastern Time on Thursday, August 6, 2009 to review the Company’s results.
How: To listen to the conference call please dial +1(888) 293-6979 (domestic) or +1(719) 457-2713 (international) at least 10 minutes prior to the scheduled start time. Interested parties can also listen to a live webcast of the call. The webcast will be accessible via the Company’s website 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 webcast.
Slides: The Company will prepare materials in support of its conference call presentation. The materials will be available for downloading from the Company website the morning of August 6, 2009 prior to the conference call. A link to the materials will be located on the homepage of the MIC website.
Replay: For interested individuals unable to participate in the conference call, a replay will be available after 2:00 p.m. on August 6, 2009 through August 20, 2009, at +1(888) 203-1112 (domestic) or +1(719) 457-0820 (international), Passcode: 3826141. An online archive of the webcast will be available on the Company’s website for one year following the call.
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic, everyday services, to customers in the United States. Its ongoing businesses consist of three energy-related businesses including a 50% indirect interest in a bulk liquid storage terminal business (International-Matex Tank Terminals), a gas production and distribution business (The Gas Company in Hawaii) and a district energy business (Thermal Chicago) as well as an aviation-related airport services business (Atlantic Aviation). The Company is managed by a wholly-owned subsidiary of the 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: changes in general economic or business conditions, our ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, 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, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, 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 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
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
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| CONSOLIDATED CONDENSED BALANCE SHEETS |
| ($ In Thousands, Except Share Data) |
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| | | | June 30, 2009 | | | December 31, 2008 |
| | | | (Unaudited) | | | |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | | | $ | 38,052 | | | $ | 68,231 |
| Restricted cash | | | | | 1,972 | | | | 1,063 |
Accounts receivable, less allowance for doubtful accounts
of $4,229 and $2,230, respectively | | | | | 55,170 | | | | 62,240 |
| Dividends receivable | | | | | - | | | | 7,000 |
| Other receivables | | | | | 22 | | | | 132 |
| Inventories | | | | | 14,370 | | | | 15,968 |
| Prepaid expenses | | | | | 6,720 | | | | 9,156 |
| Deferred income taxes | | | | | 3,774 | | | | 3,774 |
| Land - available for sale | | | | | 11,931 | | | | 11,931 |
| Income tax receivable | | | | | - | | | | 489 |
| Other | | | | | 11,035 | | | | 13,440 |
| Total current assets | | | | | 143,046 | | | | 193,424 |
| Property, equipment, land and leasehold improvements, net | | | | | 653,448 | | | | 673,981 |
| Restricted cash | | | | | 16,016 | | | | 19,939 |
| Equipment lease receivables | | | | | 34,754 | | | | 36,127 |
| Investment in unconsolidated business | | | | | 200,408 | | | | 184,930 |
| Goodwill | | | | | 516,182 | | | | 586,249 |
| Intangible assets, net | | | | | 769,176 | | | | 812,184 |
| Deferred financing costs, net of accumulated amortization | | | | | 19,987 | | | | 23,383 |
| Other | | | | | 4,345 | | | | 4,033 |
| Total assets | | | | $ | 2,357,362 | | | $ | 2,534,250 |
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| LIABILITIES AND MEMBERS'/STOCKHOLDERS' EQUITY | | | | | | | |
| Current liabilities: | | | | | | | |
| Due to manager - related party | | | | $ | 879 | | | $ | 3,521 |
| Accounts payable | | | | | 44,895 | | | | 47,886 |
| Accrued expenses | | | | | 27,460 | | | | 29,448 |
| Current portion of notes payable and capital leases | | | | | 5,949 | | | | 2,724 |
| Current portion of long-term debt | | | | | 312,476 | | | | 201,344 |
| Fair value of derivative instruments | | | | | 49,817 | | | | 51,441 |
| Customer deposits | | | | | 5,671 | | | | 5,457 |
| Other | | | | | 9,680 | | | | 10,785 |
| Total current liabilities | | | | | 456,827 | | | | 352,606 |
| Notes payable and capital leases, net of current portion | | | | | 2,041 | | | | 2,274 |
| Long-term debt, net of current portion | | | | | 1,156,461 | | | | 1,327,800 |
| Deferred income taxes | | | | | 46,545 | | | | 65,042 |
| Fair value of derivative instruments | | | | | 60,226 | | | | 105,970 |
| Other | | | | | 47,561 | | | | 46,297 |
| Total liabilities | | | | | 1,769,661 | | | | 1,899,989 |
| Commitments and Contingencies | | | | | - | | | | - |
| Members’/stockholders' equity: | | | | | | | |
LLC interests, no par value; 500,000,000 authorized; 44,962,809 LLC
interests issued and outstanding at June 30, 2009 and 44,948,694 LLC
interests issued and outstanding at December 31, 2008 | | | | | 957,406 | | | | 956,956 |
| Accumulated other comprehensive loss | | | | | (61,029) | | | | (97,190) |
| Accumulated deficit | | | | | (312,912) | | | | (230,928) |
| Total members’/stockholders' equity | | | | | 583,465 | | | | 628,838 |
| Noncontrolling interests | | | | | 4,236 | | | | 5,423 |
| Total equity | | | | | 587,701 | | | | 634,261 |
| Total liabilities and equity | | | | $ | 2,357,362 | | | $ | 2,534,250 |
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
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| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| ($ In Thousands, Except Share and per Share Data) |
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| | | | Quarter Ended | | | | Six Months Ended |
| | | | June 30, 2009 | | | June 30, 2008 | | | | June 30, 2009 | | | June 30, 2008 |
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| Revenue | | | | | | | | | | | | | | |
| Revenue from product sales | | | | $ | 89,430 | | | $ | 166,834 | | | | $ | 178,622 | | | $ | 326,159 |
| Revenue from product sales - utility | | | | | 21,414 | | | | 31,858 | | | | | 41,581 | | | | 61,257 |
| Service revenue | | | | | 68,798 | | | | 86,672 | | | | | 142,350 | | | | 175,457 |
| Financing and equipment lease income | | | | | 1,205 | | | | 1,179 | | | | | 2,397 | | | | 2,373 |
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| Total revenue | | | | | 180,847 | | | | 286,543 | | | | | 364,950 | | | | 565,246 |
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| Costs and expenses | | | | | | | | | | | | | | |
| Cost of product sales | | | | | 50,008 | | | | 119,501 | | | | | 99,275 | | | | 228,018 |
| Cost of product sales - utility | | | | | 15,793 | | | | 26,679 | | | | | 30,610 | | | | 51,014 |
| Cost of services | | | | | 24,682 | | | | 32,289 | | | | | 56,139 | | | | 65,545 |
| Selling, general and administrative | | | | | 53,207 | | | | 61,645 | | | | | 112,686 | | | | 125,502 |
| Fees to manager - related party | | | | | 851 | | | | 4,509 | | | | | 1,313 | | | | 9,135 |
| Goodwill impairment | | | | | 53,200 | | | | - | | | | | 71,200 | | | | - |
| Depreciation | | | | | 9,270 | | | | 6,315 | | | | | 22,420 | | | | 13,038 |
| Amortization of intangibles | | | | | 12,532 | | | | 10,904 | | | | | 42,797 | | | | 21,643 |
| | | | | | | | | | | | | | |
| Total operating expenses | | | | | 219,543 | | | | 261,842 | | | | | 436,440 | | | | 513,895 |
| | | | | | | | | | | | | | |
| Operating (loss) income | | | | | (38,696) | | | | 24,701 | | | | | (71,490) | | | | 51,351 |
| | | | | | | | | | | | | | |
| Other income (expense) | | | | | | | | | | | | | | |
| Interest income | | | | | 34 | | | | 297 | | | | | 108 | | | | 770 |
| Interest expense | | | | | (26,619) | | | | (25,676) | | | | | (57,222) | | | | (51,502) |
Equity in earnings and amortization charges of investees | | | | | 10,028 | | | | 8,641 | | | | | 15,477 | | | | 6,552 |
| Gain (loss) on derivative instruments | | | | | 19,724 | | | | (581) | | | | | (12,501) | | | | (886) |
| Other (expense) income, net | | | | | (157) | | | | 463 | | | | | 1,424 | | | | 655 |
Net (loss) income before income taxes and noncontrolling interests | | | | | (35,686) | | | | 7,845 | | | | | (124,204) | | | | 6,940 |
| Benefit (provision) for income taxes | | | | | 5,689 | | | | 364 | | | | | 41,348 | | | | (1,000) |
| | | | | | | | | | | | | | |
| Net (loss) income before noncontrolling interests | | | | | (29,997) | | | | 8,209 | | | | | (82,856) | | | | 5,940 |
| | | | | | | | | | | | | | |
| Net loss attributable to noncontrolling interest | | | | | (1,039) | | | | (129) | | | | | (872) | | | | (408) |
| | | | | | | | | | | | | | |
| Net (loss) income | | | | $ | (28,958) | | | $ | 8,338 | | | | $ | (81,984) | | | $ | 6,348 |
| | | | | | | | | | | | | | |
| Basic (loss) earnings per share: | | | | $ | (0.64) | | | $ | 0.19 | | | | $ | (1.82) | | | $ | 0.14 |
Weighted average number of shares outstanding: basic | | | | | 44,951,176 | | | | 44,941,440 | | | | | 44,949,942 | | | | 44,939,910 |
Diluted (loss) earnings per share: | | | | $ | (0.64) | | | $ | 0.19 | | | | $ | (1.82) | | | $ | 0.14 |
Weighted average number of shares outstanding: diluted | | | | | 44,951,176 | | | | 44,954,123 | | | | | 44,949,942 | | | | 44,951,408 |
| Cash distributions declared per share | | | | $ | - | | | $ | 0.645 | | | | $ | - | | | $ | 1.280 |
| | | | | | | | | | | | | | | | | | |
| |
| |
| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| | | | | | | | | |
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| ($ In Thousands) |
| | | | | | | | | |
| | | | | Six Months Ended |
| | | | | June 30, 2009 | | | | June 30, 2008 |
| | | | | | | | | |
| Operating activities | | | | | | | | | |
| Net (loss) income before noncontrolling interests | | | | | $ | (82,856) | | | | $ | 5,940 |
Adjustments to reconcile net (loss) income before noncontrolling interests to net cash provided by operating activities: | | | | | | | | | |
| Non-cash goodwill impairment | | | | | | 71,200 | | | | | - |
| Depreciation and amortization of property and equipment | | | | | | 33,498 | | | | | 18,549 |
| Amortization of intangible assets | | | | | | 42,797 | | | | | 21,643 |
| Equity in earnings and amortization charges of investees | | | | | | (15,477) | | | | | (6,552) |
| Equity distributions from investees | | | | | | 7,000 | | | | | 6,552 |
| Amortization of debt financing costs | | | | | | 3,396 | | | | | 3,350 |
| Non-cash derivative loss, net of non-cash interest expense | | | | | | 12,501 | | | | | 1,045 |
| Base management fees to be settled in LLC interests | | | | | | 851 | | | | | - |
| Equipment lease receivable, net | | | | | | 1,176 | | | | | 1,113 |
| Deferred rent | | | | | | 852 | | | | | 1,071 |
| Deferred taxes | | | | | | (42,092) | | | | | (278) |
| Other non-cash (income) expenses, net | | | | | | (245) | | | | | 587 |
| Changes in other assets and liabilities, net of acquisitions: | | | | | | | | | |
| Restricted cash | | | | | | (277) | | | | | (266) |
| Accounts receivable | | | | | | 7,069 | | | | | (9,661) |
| Inventories | | | | | | 1,598 | | | | | (3,222) |
| Prepaid expenses and other current assets | | | | | | 5,865 | | | | | 3,320 |
| Due to manager - related party | | | | | | (3,493) | | | | | (1,161) |
| Accounts payable and accrued expenses | | | | | | (5,121) | | | | | 7,057 |
| Income taxes payable | | | | | | 98 | | | | | (850) |
| Other, net | | | | | | (1,487) | | | | | 353 |
| Net cash provided by operating activities | | | | | | 36,853 | | | | | 48,590 |
| | | | | | | | | |
| Investing activities | | | | | | | | | |
| Acquisitions of businesses and investments, net of cash acquired | | | | | | - | | | | | (41,914) |
| Purchases of property and equipment | | | | | | (12,176) | | | | | (39,975) |
| Return of investment in unconsolidated business | | | | | | - | | | | | 7,447 |
| Other | | | | | | 92 | | | | | 229 |
| Net cash used in investing activities | | | | | | (12,084) | | | | | (74,213) |
| | | | | | | | | |
| Financing activities | | | | | | | | | |
| Proceeds from long-term debt | | | | | | - | | | | | 5,000 |
| Proceeds from line of credit facilities | | | | | | 3,600 | | | | | 70,650 |
| Offering and equity raise costs paid | | | | | | - | | | | | (65) |
| Distributions paid to holders of LLC interests | | | | | | - | | | | | (57,528) |
| Distributions paid to noncontrolling shareholders | | | | | | (314) | | | | | (292) |
| Payment of long-term debt | | | | | | (60,806) | | | | | (80) |
| Debt financing costs paid | | | | | | - | | | | | (1,846) |
| Change in restricted cash | | | | | | 3,292 | | | | | (354) |
| Payment of notes and capital lease obligations | | | | | | (720) | | | | | (875) |
| Net cash (used in) provided by financing activities | | | | | | (54,948) | | | | | 14,610 |
| | | | | | | | | |
| Net change in cash and cash equivalents | | | | | | (30,179) | | | | | (11,013) |
| | | | | | | | | |
| Cash and cash equivalents, beginning of period | | | | | | 68,231 | | | | | 57,473 |
| | | | | | | | | |
| Cash and cash equivalents, end of period | | | | | $ | 38,052 | | | | $ | 46,460 |
| | | | | | | | | |
| | | | | | | | | |
| Supplemental disclosures of cash flow information: | | | | | | | | | |
| Non-cash investing and financing activities: | | | | | | | | | |
| | | | | | | | | |
| Accrued purchases of property and equipment | | | | | $ | 1,238 | | | | $ | 872 |
| | | | | | | | | |
| Acquisition of equipment through capital leases | | | | | $ | 129 | | | | $ | 490 |
| | | | | | | | | |
| Issuance of LLC interests to independent directors | | | | | $ | 450 | | | | $ | 450 |
| | | | | | | | | |
| Taxes paid | | | | | $ | 541 | | | | $ | 2,237 |
| | | | | | | | | |
| Interest paid | | | | | $ | 51,794 | | | | $ | 48,572 |
| | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| ($ In Thousands, Except Share and per Share Data) |
| | | | | | | | | | | | | | | | |
| | Quarter Ended
June 30, | | Change
Favorable/(Unfavorable) | | Six Months Ended
June 30, | | Change
Favorable/(Unfavorable) |
| | 2009 | | 2008 | | $ | | % | | 2009 | | 2008 | | $ | | % |
| Revenue | | | | | | | | | | | | | | | | |
| Revenue from product sales | | $ | 89,430 | | $ | 166,834 | | (77,404) | | (46.4) | | $ | 178,622 | | $ | 326,159 | | (147,537) | | (45.2) |
| Revenue from product sales - utility | | | 21,414 | | | 31,858 | | (10,444) | | (32.8) | | | 41,581 | | | 61,257 | | (19,676) | | (32.1) |
| Service revenue | | | 68,798 | | | 86,672 | | (17,874) | | (20.6) | | | 142,350 | | | 175,457 | | (33,107) | | (18.9) |
| Financing and equipment lease income | | | 1,205 | | | 1,179 | | 26 | | 2.2 | | | 2,397 | | | 2,373 | | 24 | | 1.0 |
| | | | | | | | | | | | | | | | |
| Total revenue | | | 180,847 | | | 286,543 | | (105,696) | | (36.9) | | | 364,950 | | | 565,246 | | (200,296) | | (35.4) |
| | | | | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | |
| Cost of product sales | | | 50,008 | | | 119,501 | | 69,493 | | 58.2 | | | 99,275 | | | 228,018 | | 128,743 | | 56.5 |
| Cost of product sales - utility | | | 15,793 | | | 26,679 | | 10,886 | | 40.8 | | | 30,610 | | | 51,014 | | 20,404 | | 40.0 |
| Cost of services | | | 24,682 | | | 32,289 | | 7,607 | | 23.6 | | | 56,139 | | | 65,545 | | 9,406 | | 14.4 |
| Gross profit | | | 90,364 | | | 108,074 | | (17,710) | | (16.4) | | | 178,926 | | | 220,669 | | (41,743) | | (18.9) |
| | | | | | | | | | | | | | | | |
| Selling, general and administrative | | | 53,207 | | | 61,645 | | 8,438 | | 13.7 | | | 112,686 | | | 125,502 | | 12,816 | | 10.2 |
| Fees to manager - related party | | | 851 | | | 4,509 | | 3,658 | | 81.1 | | | 1,313 | | | 9,135 | | 7,822 | | 85.6 |
| Goodwill impairment | | | 53,200 | | | - | | (53,200) | | NM | | | 71,200 | | | - | | (71,200) | | NM |
| Depreciation | | | 9,270 | | | 6,315 | | (2,955) | | (46.8) | | | 22,420 | | | 13,038 | | (9,382) | | (72.0) |
| Amortization of intangibles | | | 12,532 | | | 10,904 | | (1,628) | | (14.9) | | | 42,797 | | | 21,643 | | (21,154) | | (97.7) |
| | | | | | | | | | | | | | | | |
| Total operating expenses | | | 129,060 | | | 83,373 | | (45,687) | | (54.8) | | | 250,416 | | | 169,318 | | (81,098) | | (47.9) |
| | | | | | | | | | | | | | | | |
| Operating (loss) income | | | (38,696) | | | 24,701 | | (63,397) | | NM | | | (71,490) | | | 51,351 | | (122,841) | | NM |
| | | | | | | | | | | | | | | | |
| Other income (expense) | | | | | | | | | | | | | | | | |
| Interest income | | | 34 | | | 297 | | (263) | | (88.6) | | | 108 | | | 770 | | (662) | | (86.0) |
| Interest expense | | | (26,619) | | | (25,676) | | (943) | | (3.7) | | | (57,222) | | | (51,502) | | (5,720) | | (11.1) |
Equity in earnings and amortization charges of investees | | | 10,028 | | | 8,641 | | 1,387 | | 16.1 | | | 15,477 | | | 6,552 | | 8,925 | | 136.2 |
| Gain (loss) on derivative instruments | | | 19,724 | | | (581) | | 20,305 | | NM | | | (12,501) | | | (886) | | (11,615) | | NM |
| Other (expense) income, net | | | (157) | | | 463 | | (620) | | (133.9) | | | 1,424 | | | 655 | | 769 | | 117.4 |
Net (loss) income before income taxes and noncontrolling interests | | | (35,686) | | | 7,845 | | (43,531) | | NM | | | (124,204) | | | 6,940 | | (131,144) | | NM |
| Benefit (provision) for income taxes | | | 5,689 | | | 364 | | 5,325 | | NM | | | 41,348 | | | (1,000) | | 42,348 | | NM |
| | | | | | | | | | | | | | | | |
| Net (loss) income before noncontrolling interests | | | (29,997) | | | 8,209 | | (38,206) | | NM | | | (82,856) | | | 5,940 | | (88,796) | | NM |
| | | | | | | | | | | | | | | | |
| Noncontrolling interests | | | (1,039) | | | (129) | | 910 | | NM | | | (872) | | | (408) | | 464 | | 113.7 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (28,958) | | $ | 8,338 | | (37,296) | | NM | | $ | (81,984) | | $ | 6,348 | | (88,332) | | NM |
| | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF CONSOLIDATED NET (LOSS) INCOME TO CONSOLIDATED EBITDA EXCLUDING NON-CASH ITEMS |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | | Change
Favorable/(Unfavorable) | | | Six Months
Ended June 30, | | | Change
Favorable/(Unfavorable) |
| | | | | | | | | | | | |
| | | 2009 | | 2008 | | | $ | | % | | | 2009 | | 2008 | | | $ | | % |
| | | | | | | | | | | | | | | | | | | | |
| Net (loss) income | | | $ | (28,958) | | $ | 8,338 | | | | | | | | $ | (81,984) | | $ | 6,348 | | | | | |
| Interest expense, net | | | | 26,585 | | | 25,379 | | | | | | | | | 57,114 | | | 50,732 | | | | | |
| (Benefit) provision for income taxes | | | | (5,689) | | | (364) | | | | | | | | | (41,348) | | | 1,000 | | | | | |
| Depreciation (1) | | | | 9,270 | | | 6,315 | | | | | | | | | 22,420 | | | 13,038 | | | | | |
| Depreciation - cost of services (1) | | | | 2,364 | | | 2,765 | | | | | | | | | 11,078 | | | 5,511 | | | | | |
| Amortization (2) | | | | 12,532 | | | 10,904 | | | | | | | | | 42,797 | | | 21,643 | | | | | |
| Goodwill impairment | | | | 53,200 | | | - | | | | | | | | | 71,200 | | | - | | | | | |
| (Gain) loss on derivative instruments | | | | (19,724) | | | 581 | | | | | | | | | 12,501 | | | 886 | | | | | |
50% share of IMTT unrealized (gains)
losses on derivative instruments | | | | (12,611) | | | (9,005) | | | | | | | | | (14,264) | | | (145) | | | | | |
| EBITDA excluding non-cash items | | | $ | 36,969 | | $ | 44,913 | | | (7,944) | | (17.7) | | | $ | 79,514 | | $ | 99,013 | | | (19,499) | | (19.7) |
| | | | | | | | | | | | | | | | | | | | | | | | |
____________________________________ | | | | | | | | | | | | | | | | | | | | | | | | |
| |
(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 condensed statements of operations. Depreciation and Depreciation - cost of services do not include step-up depreciation expense of $1.7 million for each quarter in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations. |
(2) Amortization does not include step-up amortization expense of $283,000 for each quarter related to intangible assets in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations. |
| |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF SEGMENT NET (LOSS) INCOME TO EBITDA EXCLUDING NON-CASH ITEMS AND SEGMENT REVENUE TO CONTRIBUTION MARGIN |
| | | | | | | | | | | | | | | | | | | | |
Energy–Related Business: Bulk Liquid Storage Terminal Business |
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | | | | Six Months Ended | | | | | |
| | | June 30, | | | Change | | | June 30, | | | Change |
| | | 2009 | | 2008 | | | Favorable/(Unfavorable) | | | 2009 | | 2008 | | | Favorable/(Unfavorable) |
| | | $ | | $ | | | $ | | % | | | $ | | $ | | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | | | | | | | | | | | |
| Terminal revenue | | | 77,752 | | 72,899 | | | 4,853 | | 6.7 | | | 161,562 | | 147,123 | | | 14,439 | | 9.8 |
| Environmental response revenue | | | 4,222 | | 5,331 | | | (1,109) | | (20.8) | | | 7,215 | | 9,501 | | | (2,286) | | (24.1) |
| Total revenue | | | 81,974 | | 78,230 | | | 3,744 | | 4.8 | | | 168,777 | | 156,624 | | | 12,153 | | 7.8 |
| | | | | | | | | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | | | | | |
| Terminal operating costs | | | 38,014 | | 39,443 | | | 1,429 | | 3.6 | | | 76,463 | | 77,985 | | | 1,522 | | 2.0 |
| Environmental response operating costs | | | 4,130 | | 4,166 | | | 36 | | 0.9 | | | 7,930 | | 7,895 | | | (35) | | (0.4) |
| Total operating costs | | | 42,144 | | 43,609 | | | 1,465 | | 3.4 | | | 84,393 | | 85,880 | | | 1,487 | | 1.7 |
| | | | | | | | | | | | | | | | | | | | |
| Terminal gross profit | | | 39,738 | | 33,456 | | | 6,282 | | 18.8 | | | 85,099 | | 69,138 | | | 15,961 | | 23.1 |
| Environmental response gross profit (loss) | | | 92 | | 1,165 | | | (1,073) | | (92.1) | | | (715) | | 1,606 | | | (2,321) | | (144.5) |
| Gross profit | | | 39,830 | | 34,621 | | | 5,209 | | 15.0 | | | 84,384 | | 70,744 | | | 13,640 | | 19.3 |
| | | | | | | | | | | | | | | | | | | | |
| General and administrative expenses | | | 6,583 | | 6,365 | | | (218) | | (3.4) | | | 12,567 | | 13,195 | | | 628 | | 4.8 |
| Depreciation and amortization | | | 13,454 | | 10,323 | | | (3,131) | | (30.3) | | | 26,278 | | 20,657 | | | (5,621) | | (27.2) |
| Operating income | | | 19,793 | | 17,933 | | | 1,860 | | 10.4 | | | 45,539 | | 36,892 | | | 8,647 | | 23.4 |
| | | | | | | | | | | | | | | | | | | | |
| Interest expense, net | | | (7,551) | | (5,173) | | | (2,378) | | (46.0) | | | (14,612) | | (9,892) | | | (4,720) | | (47.7) |
| Other (expense) income | | | (10) | | 1,194 | | | (1,204) | | (100.8) | | | (168) | | 1,751 | | | (1,919) | | (109.6) |
| Unrealized gains on derivative instruments | | | 25,222 | | 18,010 | | | 7,212 | | 40.0 | | | 28,528 | | 290 | | | 28,238 | | NM |
| Provision for income taxes | | | (14,959) | | (12,418) | | | (2,541) | | (20.5) | | | (23,898) | | (11,462) | | | (12,436) | | (108.5) |
| Noncontrolling interest | | | (72) | | 102 | | | (174) | | (170.6) | | | 297 | | 257 | | | 40 | | 15.6 |
| Net income | | | 22,423 | | 19,648 | | | 2,775 | | 14.1 | | | 35,686 | | 17,836 | | | 17,850 | | 100.1 |
| | | | | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: |
| Net income | | | 22,423 | | 19,648 | | | | | | | | 35,686 | | 17,836 | | | | | |
| Interest expense, net | | | 7,551 | | 5,173 | | | | | | | | 14,612 | | 9,892 | | | | | |
| Provision for income taxes | | | 14,959 | | 12,418 | | | | | | | | 23,898 | | 11,462 | | | | | |
| Depreciation and amortization | | | 13,454 | | 10,323 | | | | | | | | 26,278 | | 20,657 | | | | | |
| Unrealized gains on derivative instruments | | | (25,222) | | (18,010) | | | | | | | | (28,528) | | (290) | | | | | |
| EBITDA excluding non-cash items | | | 33,165 | | 29,552 | | | 3,613 | | 12.2 | | | 71,946 | | 59,557 | | | 12,389 | | 20.8 |
______________________________________ | | | | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Energy–Related Business: Gas Production and Distribution Business |
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | | | | Six Months Ended | | | | | |
| | | June 30, | | | Change | | | June 30, | | | Change |
| | | 2009 | | 2008 | | | Favorable/(Unfavorable) | | | 2009 | | 2008 | | | Favorable/(Unfavorable) |
| | | $ | | $ | | | $ | | % | | | $ | | $ | | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| Contribution margin | | | | | | | | | | | | | | | | | | | | |
| Revenue - utility | | | 21,414 | | | 31,858 | | | | (10,444 | ) | | (32.8 | ) | | | 41,581 | | | 61,257 | | | | (19,676 | ) | | (32.1 | ) |
| Cost of revenue - utility | | | 13,045 | | | 24,078 | | | | 11,033 | | | 45.8 | | | | 25,330 | | | 45,802 | | | | 20,472 | | | 44.7 | |
| Contribution margin - utility | | | 8,369 | | | 7,780 | | | | 589 | | | 7.6 | | | | 16,251 | | | 15,455 | | | | 796 | | | 5.2 | |
| | | | | | | | | | | | | | | | | | | | |
| Revenue - non-utility | | | 18,390 | | | 23,723 | | | | (5,333 | ) | | (22.5 | ) | | | 39,465 | | | 46,682 | | | | (7,217 | ) | | (15.5 | ) |
| Cost of revenue - non-utility | | | 8,131 | | | 15,344 | | | | 7,213 | | | 47.0 | | | | 17,617 | | | 29,768 | | | | 12,151 | | | 40.8 | |
| Contribution margin - non-utility | | | 10,259 | | | 8,379 | | | | 1,880 | | | 22.4 | | | | 21,848 | | | 16,914 | | | | 4,934 | | | 29.2 | |
| | | | | | | | | | | | | | | | | | | | |
| Total contribution margin | | | 18,628 | | | 16,159 | | | | 2,469 | | | 15.3 | | | | 38,099 | | | 32,369 | | | | 5,730 | | | 17.7 | |
| | | | | | | | | | | | | | | | | | | | |
| Production | | | 1,356 | | | 1,295 | | | | (61 | ) | | (4.7 | ) | | | 2,592 | | | 2,512 | | | | (80 | ) | | (3.2 | ) |
| Transmission and distribution | | | 3,801 | | | 3,548 | | | | (253 | ) | | (7.1 | ) | | | 7,412 | | | 7,153 | | | | (259 | ) | | (3.6 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Gross profit | | | 13,471 | | | 11,316 | | | | 2,155 | | | 19.0 | | | | 28,095 | | | 22,704 | | | | 5,391 | | | 23.7 | |
| | | | | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 5,473 | | | 4,423 | | | | (1,050 | ) | | (23.7 | ) | | | 10,407 | | | 8,836 | | | | (1,571 | ) | | (17.8 | ) |
| Depreciation and amortization | | | 1,732 | | | 1,664 | | | | (68 | ) | | (4.1 | ) | | | 3,422 | | | 3,332 | | | | (90 | ) | | (2.7 | ) |
| Operating income | | | 6,266 | | | 5,229 | | | | 1,037 | | | 19.8 | | | | 14,266 | | | 10,536 | | | | 3,730 | | | 35.4 | |
| | | | | | | | | | | | | | | | | | | | |
| Interest expense, net | | | (2,203 | ) | | (2,360 | ) | | | 157 | | | 6.7 | | | | (4,497 | ) | | (4,671 | ) | | | 174 | | | 3.7 | |
| Other (expense) income | | | (89 | ) | | 101 | | | | (190 | ) | | (188.1 | ) | | | (25 | ) | | 172 | | | | (197 | ) | | (114.5 | ) |
| Unrealized gains (losses) on derivative instruments | | | 3,452 | | | (129 | ) | | | 3,581 | | | NM | | | | 2,802 | | | (150 | ) | | | 2,952 | | | NM | |
| Provision for income taxes | | | (2,908 | ) | | (1,113 | ) | | | (1,795 | ) | | (161.3 | ) | | | (4,913 | ) | | (2,305 | ) | | | (2,608 | ) | | (113.1 | ) |
| Net income (1) | | | 4,518 | | | 1,728 | | | | 2,790 | | | 161.5 | | | | 7,633 | | | 3,582 | | | | 4,051 | | | 113.1 | |
| | | | | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: |
| Net income (1) | | | 4,518 | | | 1,728 | | | | | | | | | 7,633 | | | 3,582 | | | | | | |
| Interest expense, net | | | 2,203 | | | 2,360 | | | | | | | | | 4,497 | | | 4,671 | | | | | | |
| Provision for income taxes | | | 2,908 | | | 1,113 | | | | | | | | | 4,913 | | | 2,305 | | | | | | |
| Depreciation and amortization | | | 1,732 | | | 1,664 | | | | | | | | | 3,422 | | | 3,332 | | | | | | |
| Unrealized (gains) losses on derivative instruments | | | (3,452 | ) | | 129 | | | | | | | | | (2,802 | ) | | 150 | | | | | | |
| EBITDA excluding non-cash items | | | 7,909 | | | 6,994 | | | | 915 | | | 13.1 | | | | 17,663 | | | 14,040 | | | | 3,623 | | | 25.8 | |
_____________________________________ | | | | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (1) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Energy–Related Business: District Energy Business |
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | | Six Months Ended | | | |
| | | June 30, | | | Change | | | June 30, | | | Change |
| | | 2009 | | 2008 | | | Favorable/(Unfavorable) | | | 2009 | | 2008 | | | Favorable/(Unfavorable) |
| | | $ | | $ | | | $ | | % | | | $ | | $ | | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| Cooling capacity revenue | | | 5,110 | | | 4,828 | | | | 282 | | | 5.8 | | | | 10,007 | | | 9,634 | | | | 373 | | | 3.9 | |
| Cooling consumption revenue | | | 5,502 | | | 6,073 | | | | (571 | ) | | (9.4 | ) | | | 7,730 | | | 7,841 | | | | (111 | ) | | (1.4 | ) |
| Other revenue | | | 743 | | | 717 | | | | 26 | | | 3.6 | | | | 1,499 | | | 1,449 | | | | 50 | | | 3.5 | |
| Finance lease revenue | | | 1,205 | | | 1,179 | | | | 26 | | | 2.2 | | | | 2,397 | | | 2,373 | | | | 24 | | | 1.0 | |
| Total revenue | | | 12,560 | | | 12,797 | | | | (237 | ) | | (1.9 | ) | | | 21,633 | | | 21,297 | | | | 336 | | | 1.6 | |
| Direct expenses — electricity | | | 3,784 | | | 3,826 | | | | 42 | | | 1.1 | | | | 5,388 | | | 5,002 | | | | (386 | ) | | (7.7 | ) |
| Direct expenses — other (1) | | | 4,508 | | | 4,250 | | | | (258 | ) | | (6.1 | ) | | | 9,272 | | | 8,953 | | | | (319 | ) | | (3.6 | ) |
| Direct expenses — total | | | 8,292 | | | 8,076 | | | | (216 | ) | | (2.7 | ) | | | 14,660 | | | 13,955 | | | | (705 | ) | | (5.1 | ) |
| Gross profit | | | 4,268 | | | 4,721 | | | | (453 | ) | | (9.6 | ) | | | 6,973 | | | 7,342 | | | | (369 | ) | | (5.0 | ) |
| Selling, general and administrative expenses | | | 716 | | | 766 | | | | 50 | | | 6.5 | | | | 1,354 | | | 1,758 | | | | 404 | | | 23.0 | |
| Amortization of intangibles | | | 341 | | | 341 | | | | - | | | - | | | | 678 | | | 682 | | | | 4 | | | 0.6 | |
| Operating income | | | 3,211 | | | 3,614 | | | | (403 | ) | | (11.2 | ) | | | 4,941 | | | 4,902 | | | | 39 | | | 0.8 | |
| Interest expense, net | | | (2,471 | ) | | (2,608 | ) | | | 137 | | | 5.3 | | | | (5,035 | ) | | (5,152 | ) | | | 117 | | | 2.3 | |
| Other income | | | 45 | | | 46 | | | | (1 | ) | | (2.2 | ) | | | 94 | | | 110 | | | | (16 | ) | | (14.5 | ) |
| Unrealized gains on derivative instruments | | | 5,199 | | | 48 | | | | 5,151 | | | NM | | | | 3,430 | | | 18 | | | | 3,412 | | | NM | |
| Income tax (provision) benefit | | | (2,296 | ) | | (247 | ) | | | (2,049 | ) | | NM | | | | (1,221 | ) | | 107 | | | | (1,328 | ) | | NM | |
| Noncontrolling interest | | | (174 | ) | | (145 | ) | | | (29 | ) | | (20.0 | ) | | | (341 | ) | | (290 | ) | | | (51 | ) | | (17.6 | ) |
| Net income (loss) (2) | | | 3,514 | | | 708 | | | | 2,806 | | | NM | | | | 1,868 | | | (305 | ) | | | 2,173 | | | NM | |
| | | | | | | | | | | | | | | | | | | | |
| Reconciliation of net income (loss) to EBITDA excluding non-cash items: |
| Net income (loss) (2) | | | 3,514 | | | 708 | | | | | | | | | 1,868 | | | (305 | ) | | | | | |
| Interest expense, net | | | 2,471 | | | 2,608 | | | | | | | | | 5,035 | | | 5,152 | | | | | | |
| Income tax provision (benefit) | | | 2,296 | | | 247 | | | | | | | | | 1,221 | | | (107 | ) | | | | | |
| Depreciation | | | 1,502 | | | 1,476 | | | | | | | | | 2,965 | | | 2,952 | | | | | | |
| Amortization of intangibles | | | 341 | | | 341 | | | | | | | | | 678 | | | 682 | | | | | | |
| Unrealized gains on derivative instruments | | | (5,199 | ) | | (48 | ) | | | | | | | | (3,430 | ) | | (18 | ) | | | | | |
| EBITDA excluding non-cash items | | | 4,925 | | | 5,332 | | | | (407 | ) | | (7.6 | ) | | | 8,337 | | | 8,356 | | | | (19 | ) | | (0.2 | ) |
______________________________________ | | | | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(1) Includes depreciation expense of $1.5 million for each of the quarters ended June 30, 2009 and 2008, and $3.0 million for each of the six month periods ended June 30, 2009 and 2008. |
| | | | | | | | | | | | | | | | | | | | |
| (2) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Aviation-Related Business: Airport Services Business |
| | | | | | | | | | | | | | | | |
| | Quarter Ended
June 30, | | Change | | Six Months Ended
June 30, | | Change |
| | 2009 | | 2008 | | Favorable/(Unfavorable) | | 2009 | | 2008 | | Favorable/(Unfavorable) |
| | $ | | $ | | $ | | % | | $ | | $ | | $ | | % |
| | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | | | | | | | |
| Fuel revenue | | 71,040 | | | 143,111 | | | (72,071 | ) | | (50.4 | ) | | 139,157 | | | 279,477 | | | (140,320 | ) | | (50.2 | ) |
| Non-fuel revenue | | 40,004 | | | 55,634 | | | (15,630 | ) | | (28.1 | ) | | 89,068 | | | 118,218 | | | (29,150 | ) | | (24.7 | ) |
| Total revenue | | 111,044 | | | 198,745 | | | (87,701 | ) | | (44.1 | ) | | 228,225 | | | 397,695 | | | (169,470 | ) | | (42.6 | ) |
| | | | | | | | | | | | | | | | |
| Cost of revenue | | | | | | | | | | | | | | | | |
| Cost of revenue-fuel | | 39,468 | | | 101,914 | | | 62,446 | | | 61.3 | | | 76,935 | | | 193,796 | | | 116,861 | | | 60.3 | |
| Cost of revenue-non-fuel | | 2,777 | | | 8,868 | | | 6,091 | | | 68.7 | | | 7,480 | | | 20,668 | | | 13,188 | | | 63.8 | |
| Total cost of revenue | | 42,245 | | | 110,782 | | | 68,537 | | | 61.9 | | | 84,415 | | | 214,464 | | | 130,049 | | | 60.6 | |
| | | | | | | | | | | | | | | | |
| Fuel gross profit | | 31,572 | | | 41,197 | | | (9,625 | ) | | (23.4 | ) | | 62,222 | | | 85,681 | | | (23,459 | ) | | (27.4 | ) |
| Non-fuel gross profit | | 37,227 | | | 46,766 | | | (9,539 | ) | | (20.4 | ) | | 81,588 | | | 97,550 | | | (15,962 | ) | | (16.4 | ) |
| Gross profit | | 68,799 | | | 87,963 | | | (19,164 | ) | | (21.8 | ) | | 143,810 | | | 183,231 | | | (39,421 | ) | | (21.5 | ) |
| | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses (1) | | 42,569 | | | 52,308 | | | 9,739 | | | 18.6 | | | 92,483 | | | 106,933 | | | 14,450 | | | 13.5 | |
| Goodwill impairment | | 53,200 | | | - | | | (53,200 | ) | | NM | | | 71,200 | | | - | | | (71,200 | ) | | NM | |
| Depreciation and amortization | | 19,729 | | | 14,487 | | | (5,242 | ) | | (36.2 | ) | | 61,117 | | | 29,124 | | | (31,993 | ) | | (109.9 | ) |
| Operating (loss) income | | (46,699 | ) | | 21,168 | | | (67,867 | ) | | NM | | | (80,990 | ) | | 47,174 | | | (128,164 | ) | | NM | |
| | | | | | | | | | | | | | | | |
| Interest expense, net | | (16,456 | ) | | (15,443 | ) | | (1,013 | ) | | (6.6 | ) | | (36,687 | ) | | (31,281 | ) | | (5,406 | ) | | (17.3 | ) |
| Other (expense) income | | (85 | ) | | 326 | | | (411 | ) | | (126.1 | ) | | (213 | ) | | 310 | | | (523 | ) | | (168.7 | ) |
| Unrealized gains (losses) on derivative instruments | | 11,520 | | | (356 | ) | | 11,876 | | | NM | | | (18,084 | ) | | (555 | ) | | (17,529 | ) | | NM | |
| Benefit (provision) for income taxes | | 20,844 | | | (2,295 | ) | | 23,139 | | | NM | | | 54,798 | | | (6,306 | ) | | 61,104 | | | NM | |
| Net (loss) income (2) | | (30,876 | ) | | 3,400 | | | (34,276 | ) | | NM | | | (81,176 | ) | | 9,342 | | | (90,518 | ) | | NM | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Reconciliation of net (loss) income to EBITDA excluding non-cash items: |
| Net (loss) income (2) | | (30,876 | ) | | 3,400 | | | | | | | (81,176 | ) | | 9,342 | | | | | |
| Interest expense, net | | 16,456 | | | 15,443 | | | | | | | 36,687 | | | 31,281 | | | | | |
| (Benefit) provision for income taxes | | (20,844 | ) | | 2,295 | | | | | | | (54,798 | ) | | 6,306 | | | | | |
| Depreciation and amortization | | 19,729 | | | 14,487 | | | | | | | 61,117 | | | 29,124 | | | | | |
| Goodwill impairment | | 53,200 | | | - | | | | | | | 71,200 | | | - | | | | | |
| Unrealized (gains) losses on derivative instruments | | (11,520 | ) | | 356 | | | | | | | 18,084 | | | 555 | | | | | |
| EBITDA excluding non-cash items | | 26,145 | | | 35,981 | | | (9,836 | ) | | (27.3 | ) | | 51,114 | | | 76,608 | | | (25,494 | ) | | (33.3 | ) |
| | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (1) Includes $2.4 million increase in the bad debt reserve in the first quarter of 2009 due to the deterioration of accounts receivable aging and $1.2 million in debt amendment costs incurred in February 2009. | | |
| | | | | | | | | | | | | | | | |
| (2) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Aviation–Related Business: Airport Parking Business |
| | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | | | | | | Six Months Ended | | | | |
| | | June 30, | | | Change | | | June 30, | | Change |
| | | 2009 | | 2008 | | | Favorable/(Unfavorable) | | | 2009 | | 2008 | | Favorable/(Unfavorable) |
| | | $ | | $ | | | $ | | % | | | $ | | $ | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| Revenue | | | 17,439 | | | 19,420 | | | | (1,981 | ) | | (10.2 | ) | | | 34,046 | | | 38,315 | | | (4,269 | ) | | (11.1 | ) |
| Direct expenses (1) | | | 13,613 | | | 15,344 | | | | 1,731 | | | 11.3 | | | | 33,999 | | | 30,921 | | | (3,078 | ) | | (10.0 | ) |
| Gross profit | | | 3,826 | | | 4,076 | | | | (250 | ) | | (6.1 | ) | | | 47 | | | 7,394 | | | (7,347 | ) | | (99.4 | ) |
| Selling, general and administrative expenses | | | 3,032 | | | 2,912 | | | | (120 | ) | | (4.1 | ) | | | 5,256 | | | 5,606 | | | 350 | | | 6.2 | |
| Amortization of intangibles | | | - | | | 727 | | | | 727 | | | NM | | | | - | | | 1,543 | | | 1,543 | | | NM | |
| Operating income (loss) | | | 794 | | | 437 | | | | 357 | | | 81.7 | | | | (5,209 | ) | | 245 | | | (5,454 | ) | | NM | |
| Interest expense, net | | | (4,464 | ) | | (3,749 | ) | | | (715 | ) | | (19.1 | ) | | | (8,481 | ) | | (7,636 | ) | | (845 | ) | | (11.1 | ) |
| Other (expense) income | | | (29 | ) | | (11 | ) | | | (18 | ) | | (163.6 | ) | | | 474 | | | 61 | | | 413 | | | NM | |
| Unrealized (losses) gains on derivative instruments | | | (327 | ) | | 81 | | | | (408 | ) | | NM | | | | (327 | ) | | 158 | | | (485 | ) | | NM | |
| Benefit for income taxes | | | 1,204 | | | 1,270 | | | | (66 | ) | | (5.2 | ) | | | 5,277 | | | 2,771 | | | 2,506 | | | 90.4 | |
| Noncontrolling interest | | | 1,213 | | | 273 | | | | 940 | | | NM | | | | 1,213 | | | 697 | | | 516 | | | 74.0 | |
| Net loss (2) | | | (1,609 | ) | | (1,699 | ) | | | 90 | | | 5.3 | | | | (7,053 | ) | | (3,704 | ) | | (3,349 | ) | | (90.4 | ) |
| | | | | | | | | | | | | | | | | | | |
| Reconciliation of net loss to EBITDA excluding non-cash items: | | | | | | | | | | | | | | | | | | | |
| Net loss (2) | | | (1,609 | ) | | (1,699 | ) | | | | | | | | (7,053 | ) | | (3,704 | ) | | | | |
| Interest expense, net | | | 4,464 | | | 3,749 | | | | | | | | | 8,481 | | | 7,636 | | | | | |
| Benefit for income taxes | | | (1,204 | ) | | (1,270 | ) | | | | | | | | (5,277 | ) | | (2,771 | ) | | | | |
| Depreciation (1) | | | 862 | | | 1,289 | | | | | | | | | 8,113 | | | 2,559 | | | | | |
| Amortization of intangibles | | | - | | | 727 | | | | | | | | | - | | | 1,543 | | | | | |
| Unrealized losses (gains) on derivative instruments | | | 327 | | | (81 | ) | | | | | | | | 327 | | | (158 | ) | | | | |
| EBITDA excluding non-cash items | | | 2,840 | | | 2,715 | | | | 125 | | | 4.6 | | | | 4,591 | | | 5,105 | | | (514 | ) | | (10.1 | ) |
_________________________________________ | | | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| (1) Includes depreciation expense of $862,000 and $1.3 million for the quarters ended June 30, 2009 and 2008, respectively, and $8.1 million and $2.6 million for the six month periods ended June 30, 2009 and 2008, respectively. Depreciation expense for the six months period ended June 30, 2009 includes a non-cash impairment charge of $6.4 million. |
| (2) Corporate allocation expense and other intercompany fees and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
CONTACT:
Macquarie Infrastructure Company
Investor enquiries
Jay A. Davis, 212-231-1825
Investor Relations
or
Media enquiries
Alex Doughty, 212-231-1310
Corporate Communications
