Exhibit 99.1
Macquarie Infrastructure Company Reports 2011 Financial Results, Highlights Continued Strong Performance by Operating Businesses
- Dividend of $0.20 per share declared for Fourth Quarter 2011
- Proportionately combined free cash flow of $3.16 per share exceeds expectations
- Atlantic Aviation exits cash flow lockup, expected to distribute approximately $25 million to MIC during 2012
- Proportionately combined free cash flow of $3.50 - $3.60 per share expected in 2012
NEW YORK--(BUSINESS WIRE)--February 22, 2012--Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for 2011 including $3.16 per share in proportionately combined free cash flow. MIC generated $3.19 per share in proportionately combined free cash flow in 2010. Excluding the free cash flow generated in connection with the cleanup of the BP oil spill in 2010, the 2011 result reflects an approximately 18% year on year increase in proportionately combined free cash flow.
With the continued strong cash generation, MIC’s board of directors authorized the payment of a $0.20 per share cash dividend for the fourth quarter of 2011. The dividend will be payable on March 8, 2012 to shareholders of record on March 5, 2012.
“Our energy-related businesses generally, and The Gas Company in Hawaii in particular, produced very good results for the fourth quarter and full year 2011,” said James Hooke, Chief Executive Officer of MIC. “Each of these businesses performed at or above the level of our expectations.”
In addition to The Gas Company, MIC’s energy-related businesses include a 50.01% (controlling) interest in District Energy in Chicago and a 50% (unconsolidated) interest in International-Matex Tank Terminals (“IMTT”) headquartered in New Orleans. MIC also owns 100% of an aviation-related business, Atlantic Aviation, based in Plano, Texas.
“Atlantic Aviation’s financial performance outpaced the improvement in industry fundamentals and reflects the operational leverage that exists in that business,” Hooke noted. “As a result, Atlantic Aviation’s debt levels decreased to the point where we expect the business to pay distributions totaling approximately $25 million to MIC for the fourth quarter of 2011 and the first three quarters of 2012.”
Hooke said that he expects MIC’s businesses to produce additional free cash flow in the year ahead. “The stable performance and predictable requirements of our businesses provide us with reasonable visibility into their cash generating capacity. As a result, we expect to report proportionately combined free cash flow for the full year 2012 in a range between $3.50 and $3.60 per share,” he said.
The estimate assumes that MIC’s manager continues to reinvest base management fees in additional shares. Similar reinvestment of base management fees in 2011 enhanced proportionately combined free cash flow by approximately $0.32 per share.
MIC reported consolidated revenue of $988.8 million for 2011 compared with $840.8 million in 2010. The 17.6% growth in revenue reflects primarily higher energy commodity prices, such as the cost of jet fuel and gas products that typically are passed through to its customers.
Reported gross profit - defined as revenue less cost of goods sold - removes the volatility in revenue associated with fluctuations in energy costs. MIC’s consolidated gross profit totaled $382.6 million in 2011, an increase of 3.3% over 2010. The year on year growth is the result of increases in the volume of product sold, combined with a modest increase in margins on those sales.
MIC’s net income from continuing operations, after tax, was $28.9 million and $10.0 million for years ended December 31, 2011 and 2010, respectively. The increase reflects primarily improved operating results generally, lower interest expense and net gains on derivatives (interest rate hedges), partially offset by lower net income generated by its investment in IMTT. The reduced interest expense stems from Atlantic Aviation having paid down a portion of its long term debt during the year.
IMTT’s net income declined on lower revenue from its environmental emergency response services subsidiary. The environmental emergency response business generated unusually large revenues in 2010 as a result of its involvement in the clean-up of the BP oil spill on the Gulf of Mexico.
MIC utilized a portion of its accumulated net operating loss carry forwards (NOL) to offset its consolidated federal income tax liability for 2011, other than an Alternative Minimum Tax payment of less than $250,000. At year-end MIC’s remaining federal NOL balance was $135.2 million. The Company expects utilization of this NOL balance will offset any current federal income tax liability, other than an Alternative Minimum Tax, through the 2013 tax year.
Cash Generation
MIC reports EBITDA excluding non-cash items on a consolidated and operating segment basis and reconciles each to consolidated net income (loss) from continuing operations. EBITDA excluding non-cash items is a measure relied upon by management in evaluating the performance of its businesses and investments. EBITDA excluding non-cash items is defined as earnings before interest, taxes, depreciation and amortization and non-cash items, which include impairments, gains and losses on derivatives and adjustments for certain other items reflected in the statement of operations.
MIC believes that EBITDA excluding non-cash items provides additional insight into the performance of its operating businesses, relative to each other and to similar businesses, without regard to capital structure, and their ability to service or reduce debt, fund capital expenditures and/or support distributions to the holding company.
MIC also reports free cash flow, as defined below, on both a consolidated and operating segment basis as a means of assessing the amount of cash generated by its businesses and as a supplement to other information provided in accordance with GAAP, and reconciles each to cash from operating activities. MIC believes that reporting free cash flow provides additional insight into its ability to deploy cash as GAAP measures, such as net income and cash from operating activities, do not reflect all of the items that management considers in estimating the amount of cash generated by its operating businesses.
MIC defines free cash flow as cash from operating activities, less maintenance capital expenditures and changes in working capital. Working capital movements are excluded on the basis that these are largely timing differences in payables and receivables, and are therefore not reflective of MIC’s ability to generate cash.
MIC notes that free cash flow does not fully reflect its ability to freely deploy generated cash, as it does not reflect required principal payments on indebtedness, payments of dividends, potential growth capital expenditures and other fixed obligations or the other cash items excluded when calculating free cash flow. Free cash flow may be calculated differently by other companies which limits its usefulness as a comparative measure. Free cash flow, as defined by MIC, should be used as a supplemental measure and not in lieu of financial results reported under GAAP.
For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas | District Energy | Atlantic Aviation | MIC Corporate | Proportionately | IMTT 100% | District Energy | |||||||||||||||||||
| Gross profit | 117,929 | 62,998 | 8,921 | 301,749 | N/A | 491,596 | 235,857 | 17,838 | |||||||||||||||||||
| EBITDA excluding non-cash items | 103,195 | 49,032 | 11,350 | 126,680 | (8,529 | ) | 281,728 | 206,390 | 22,695 | ||||||||||||||||||
| Free cash flow | 54,298 | 28,508 | 7,168 | 61,714 | (6,550 | ) | 145,137 | 108,595 | 14,333 | ||||||||||||||||||
For the Year Ended December 31, 2010 | |||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas | District Energy | Atlantic Aviation | MIC Corporate | Proportionately | IMTT 100% | District Energy | |||||||||||||||||||
| Gross profit | 136,267 | 58,826 | 10,037 | 291,532 | N/A | 496,662 | 272,534 | 20,070 | |||||||||||||||||||
| EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270 | ) | 280,486 | 236,836 | 22,846 | ||||||||||||||||||
| Free cash flow | 73,328 | 25,135 | 7,274 | 48,484 | (8,504 | ) | 145,717 | 146,656 | 14,546 | ||||||||||||||||||
| Gross profit variance | (13.5 | )% | 7.1 | % | (11.1 | )% | 3.5 | % | N/A | (1.0 | )% | (13.5 | )% | (11.1 | )% | ||||||||||||
| EBITDA excluding non-cash items variance | (12.9 | )% | 10.3 | % | (0.7 | )% | 7.8 | % | 24.3 | % | 0.4 | % | (12.9 | )% | (0.7 | )% | |||||||||||
| Free cash flow variance | (26.0 | )% | 13.4 | % | (1.5 | )% | 27.3 | % | 23.0 | % | (0.4 | )% | (26.0 | )% | (1.5 | )% | |||||||||||
| _____________________ | |||||||||||||||||||||||||||
| (1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. | |||||||||||||||||||||||||||
For the Quarter Ended December 31, 2011 | |||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas | District Energy | Atlantic Aviation | MIC Corporate | Proportionately | IMTT 100% | District Energy | |||||||||||||||||||
| Gross profit | 29,999 | 16,794 | 1,805 | 77,119 | N/A | 125,717 | 59,997 | 3,610 | |||||||||||||||||||
| EBITDA excluding non-cash items | 26,431 | 13,791 | 2,311 | 32,834 | (3,305 | ) | 72,062 | 52,862 | 4,622 | ||||||||||||||||||
| Free cash flow | 14,562 | 10,284 | 1,401 | 15,821 | (4,514 | ) | 37,554 | 29,124 | 2,801 | ||||||||||||||||||
For the Quarter Ended December 31, 2010 | |||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas | District Energy | Atlantic Aviation | MIC Corporate | Proportionately | IMTT 100% | District Energy | |||||||||||||||||||
| Gross profit | 29,052 | 15,927 | 2,772 | 73,468 | N/A | 121,219 | 58,104 | 5,542 | |||||||||||||||||||
| EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199 | ) | 68,026 | 51,147 | 4,160 | ||||||||||||||||||
| Free cash flow | 12,506 | 2,964 | 910 | 10,191 | 1,160 | 27,731 | 25,011 | 1,820 | |||||||||||||||||||
| Gross profit variance | 3.3 | % | 5.4 | % | (34.9 | )% | 5.0 | % | N/A | 3.7 | % | 3.3 | % | (34.9 | )% | ||||||||||||
| EBITDA excluding non-cash items variance | 3.4 | % | 10.3 | % | 11.1 | % | 13.0 | % | (175.6 | )% | 5.9 | % | 3.4 | % | 11.1 | % | |||||||||||
| Free cash flow variance | 16.4 | % | NM | 53.9 | % | 55.2 | % | NM | 35.4 | % | 16.4 | % | 53.9 | % | |||||||||||||
| _____________________ | |||||||||||||||||||||||||||
| NM- Not meaningful | |||||||||||||||||||||||||||
| (1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. | |||||||||||||||||||||||||||
Energy-Related Businesses
IMTT
MIC has a 50% equity interest in IMTT, the operator of one of the largest independent bulk liquid storage terminal businesses in the U.S. IMTT owns and operates 10 marine storage terminals in the U.S. and is the part owner and operator of two terminals in Canada. The terminals store and handle a wide variety of petroleum grades, chemicals and vegetable and animal oils. To aid in meaningful analysis of the performance of IMTT across periods, the table and discussion below refers to results for 100% of the business, not just MIC’s 50% interest.
In addition to its liquid storage and related services business, IMTT also owns and operates an environmental emergency response, industrial, waste transportation and disposal services business known as OMI Environmental Solutions (“OMI”). OMI generated significant revenue and EBITDA for IMTT in 2010 as a result of its participation in the clean-up of the BP oil spill in the Gulf of Mexico. Contributions from OMI to IMTT’s financial results in 2011 returned to historic levels and were not material to the business’ overall results.
Terminal gross profit (excludes OMI) increased 12.6% in 2011 compared with 2010. The improvement was driven by a 13.3% increase in average storage rental rates and a slight increase in storage utilization from 93.6% to 94.3%.
IMTT generated free cash flow of $108.6 million in 2011, the majority of which was used to reduce debt facility balances.
Maintenance and environmental capital expenditures totaled $57.3 million in 2011, an increase of 27.3% compared with 2010. MIC forecasts maintenance and environmental capital expenditures to be approximately $50.0 million in 2012.
Each of MIC’s businesses, including IMTT, deployed an above average amount of capital during the year to take advantage of the tax incentives created under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The legislation provided for 100% tax depreciation of capital projects completed in 2011. Currently, this same legislation provides for 50% tax depreciation of capital projects completed in 2012.
President Obama’s proposed budget for 2012 includes an extension of the 100% tax depreciation for certain fixed assets. There is some congressional support for this proposal, although there can be no certainty that any extension will be approved. Such approval, if made, may result in MIC accelerating a portion of its business’ maintenance capital expenditures into 2012 in order to capture the associated tax benefit.
IMTT continues to grow via the construction of additional tank storage capacity. In 2011 the business deployed approximately $72.9 million in construction of new or refurbishment of existing tanks. IMTT has $241.2 million of growth projects underway of which a total of $77.6 million has already been spent. The business expects the projects to generate an aggregate $41.2 million in gross profit and EBITDA.
IMTT had $639.8 million of debt outstanding at December 31, 2011 including $28.7 million in shareholder loans. The weighted average cost of the debt, including the cost of interest rate hedges and letter of credit fees, was 5.05%.
The business’ debt agreement (primary facility) contains a covenant that limits IMTT’s ratio of debt to EBITDA to not more than 4.75 times. At December 31, 2011 the ratio was 2.70 times and the business had undrawn capacity on its existing debt facility of $669.9 million. All but $75.0 million of the $1,100.0 million revolving credit facility matures in June 2014. The facility contains no restrictions on the payment of dividends provided that the borrower is not in default.
Distribution of Funds from IMTT
Distribution of cash flows from IMTT is governed by a Shareholders’ Agreement between MIC and its co-investor in the business. The co-investor has refused to vote in favor of distributing certain of these funds and the Company believes that such refusal violates the Shareholders’ Agreement.
MIC has been unable to resolve this dispute with the co-investor regarding distributions, despite efforts to do so in accordance with the Shareholders’ Agreement. Accordingly, on April 18, 2011, MIC initiated formal arbitration proceedings with the co-investor under the auspices of the American Arbitration Association. MIC believes the defenses and claims of the co-investor are without merit. MIC currently expects a decision by the arbitrators in the first quarter of 2012, or soon after.
The Gas Company
The Gas Company is the owner and operator of the only regulated (“utility”) gas processing and pipeline transmission and distribution network on the islands of Hawaii. The business is also the owner and operator of the largest unregulated (“non-utility”) gas distribution operation on the islands.
The Gas Company’s financial results for 2011 reflect a recovery in the Hawaiian economy, and the tourism industry in particular, that drove a 2.1% increase in the demand for gas products across both the utility and non-utility portions of the business.
Aggregate gross profit – revenue less the cost of feedstock, production and transmission, and distribution – grew by 7.1% in 2011 compared with 2010. EBITDA excluding non-cash items and free cash flow increased by 10.3% and 13.4%, respectively.
The Gas Company generated $28.5 million in free cash flow in 2011. The majority of the free cash flow was distributed to MIC.
The Gas Company had $170.0 million of debt outstanding at December 31, 2011 including $160.0 million in term loan facilities and $10.0 million in a revolving credit facility. The weighted average cost of the debt, including the cost of interest rate hedges, was 5.16%. The Gas Company’s primary debt facilities mature in June 2013 although a refinancing of these facilities may be undertaken in 2012 subject to debt market conditions.
District Energy
MIC’s District Energy business produces chilled water that it distributes via underground pipelines to buildings in downtown Chicago. The cold energy is used in air conditioning and process cooling applications. The business also operates a site-specific facility in Las Vegas, Nevada that supplies both cooling and heating services to a resort/casino complex, a condominium and a shopping mall.
MIC has a 50.01% interest in District Energy and consolidates its financial results with those of The Gas Company and Atlantic Aviation. The business is not a part of MIC’s consolidated tax group.
The gross profit produced by District Energy declined 11.1% in 2011 compared with 2010. The decrease reflects a reduction in finance lease revenue partially offset by higher capacity revenue on contractual rate increases and the addition of new customers. The decrease in finance lease revenue of $2.9 million includes a $2.5 million re-class of previously booked lease principal to lease interest in 2010 and the decline in interest as the lease amortizes. Lease principal payments received increased by a approximately $350,000 and were recorded in the statement of cash flows.
Effective management of operating expenses, combined with lower real estate taxes, resulted in flat EBITDA excluding non-cash items and a modest 1.5% decline in free cash flow generated by District Energy.
Free cash flow generated by District Energy in 2011 totaled $14.3 million with 50.01% or $7.1 million paid as a distribution to MIC.
District Energy had $170.0 million of debt outstanding at December 31, 2011 including a $150.0 million term loan facility and a $20.0 million capital expenditure facility. The weighted average cost of the debt, including the cost of interest rate hedges and letter of credit fees, was 5.5%. Both of the business’ debt facilities mature in September 2014. Commencing with the third quarter 2012, per the terms of its loan agreement, District Energy expects to direct all free cash flow to the pre-payment of the principal balance on its term loan facility.
Aviation-Related Business
Atlantic Aviation
Atlantic Aviation owns and operates a network of fixed base operations (FBOs) located at 65 airports in the U.S. FBOs provide primarily fuel, terminal services, and aircraft hangar services to owners and operators of private (general aviation) jet aircraft. The network is the largest of its type in the U.S. air transportation industry.
Atlantic Aviation reported an increase in gross profit of 3.5% in 2011 compared with 2010. The increase was the result of overall growth in the number of general aviation flight movements in the U.S. which led to a higher volume of fuel sold and, in certain instances, higher margins on those sales. Adjusting for acquisitions and divestitures of certain sites in 2011, the volume of general aviation jet fuel sold increased 5.5% and the average margin on those sales increased 2.5%.
EBITDA excluding non-cash items generated by Atlantic Aviation increased 7.8% and free cash flow grew 27.3% to $61.7 million in 2011 versus 2010. $36.2 million of free cash flow was used to repay term loan principal and pay $2.3 million in related swap breakage costs. In February 2012, Atlantic Aviation made an additional prepayment of loan principal in the amount of $6.5 million and incurred $248,000 in swap breakage costs.
Atlantic Aviation completed a number of small acquisitions and divestitures of FBOs during the year. These transactions increased the proportion of airports at which it is the sole provider of FBO services. The transactions, along with a lease extension at an existing facility, increased the weighted average remaining life of all leases in the portfolio to 17.8 years at December 31, 2011 from 16.8 years at December 31, 2010.
Atlantic Aviation had $777.2 million of debt outstanding at December 31, 2011, including balances on term loan and capital expenditure facilities. The business also has a separate $3.4 million facility used to capitalize a single FBO. The weighted average cost of the debt, including the cost of interest rate hedges, was 6.49%.
The business’ primary debt facilities mature in October 2014, although interest rates hedges covering the majority of the debt expire in October 2012. The expiration of the hedges is expected to reduce the interest expense paid by the business by approximately $30.0 million per year. Management is evaluating hedging strategies for this debt for periods beyond October 2012.
Under the terms of its debt agreement, Atlantic Aviation is required to use its free cash flow to repay debt principal so long as its ratio of debt to EBITDA over a trailing twelve month period is above 6.0 times. As of the end of the fourth quarter of 2011 that ratio fell to 5.98 times and the business is able to pay 50% of its free cash flow as a distribution to MIC so long as the ratio remains below 6.0 times. In February 2012, Atlantic Aviation made a distribution to MIC in the amount of $6.5 million representing 50% of the free cash flow generated in the fourth quarter of 2011. Regardless of the leverage ratio, the business will again be required to apply all free cash flow to debt repayment beginning with the fourth quarter in 2012 through to the maturity of the debt in 2014.
Business Outlook
Management at MIC has provided the following guidance regarding its expectations for the performance of the Company’s operating businesses in 2012.
IMTT – MIC expects the business to generate between $220 and $235 million of EBITDA. MIC expects maintenance capital expenditures to be approximately $50 million for the full year. The most significant variable potentially affecting the full year result involves the contract rates achieved on storage contracts that are renewing in 2012. MIC intends to update the market as information on storage contracts renewals becomes available. Additionally the financial results at IMTT are subject to the timing of completion of growth projects currently underway.
The Gas Company – the business is expected to generate between $50 and $55 million of EBITDA. Maintenance capital expenditures are anticipated be approximately $6.7 million for the full year or down by about one third on 2011. Potential upside and downside in the EBITDA forecast includes better than planned improvement in the Hawaiian economy and any unforeseen supply disruption.
District Energy – the business is expected to generate between $21 and $22 million of EBITDA. Maintenance capital expenditures are expected to be approximately $1 million for the full year. Potential upside and downside in the EBITDA forecast includes variations in temperature – either warmer than average or cooler than average – in Chicago.
Atlantic Aviation – the business is expected to generate between $130 and $140 million of EBITDA. Maintenance capital expenditures are expected to be approximately $13.1 million for the full year. Potential upside and downside in the EBITDA forecast includes variation in the planned recovery in general aviation flight activity – either more or fewer take-offs and landings – compared with the business’ plan.
The forecast results of the Company’s operating businesses, combined with the expenses of the holding company, produce an aggregate range of proportionately combined free cash flow of between $3.50 and $3.60 per share in 2012.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, February 23, 2012 to review the Company’s results.
How: To listen to the conference call please dial +1(650) 521-5252 at least 10 minutes prior to the scheduled start time. A webcast of the call 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’s website the morning of February 23, 2012 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 live conference call, a replay will be available after 2:00 p.m. on February 23, 2012 through March 8, 2012, at +1(404) 537-3406, Passcode: 44746709. An online archive of the webcast will be available on the Company’s website for one year following the call. MIC-G
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of three energy-related businesses including a gas processing and distribution business in Hawaii, The Gas Company, and a controlling interest in a District Energy business in Chicago, as well as a 50% indirect interest in a bulk liquid storage terminal business, International-Matex Tank Terminals. MIC also owns and operates 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 release contains forward-looking statements. MIC 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 release are subject to a number of risks and uncertainties, some of which are beyond MIC’s control and which are described in the Company’s filings with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K. These risks and uncertainties include, among other things, changes in general economic or business conditions; its 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 its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its 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; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MIC’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its 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. MIC undertakes 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.
| MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| ($ in Thousands, Except Share Data) | ||||||||
|
| December 31, 2011 |
| December 31, 2010(1) | ||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 22,786 | $ | 24,563 | ||||
| Accounts receivable, less allowance for doubtful accounts | ||||||||
| of $445 and $613, respectively | 56,458 | 47,845 | ||||||
| Inventories | 23,106 | 17,063 | ||||||
| Prepaid expenses | 7,338 | 6,321 | ||||||
| Deferred income taxes | 19,102 | 19,030 | ||||||
| Other | 14,523 | 10,605 | ||||||
| Total current assets | 143,313 | 125,427 | ||||||
| Property, equipment, land and leasehold improvements, net | 561,022 | 563,451 | ||||||
| Restricted cash | 12,769 | 13,780 | ||||||
| Equipment lease receivables | 32,189 | 35,663 | ||||||
| Investment in unconsolidated business | 230,401 | 223,792 | ||||||
| Goodwill | 516,175 | 514,253 | ||||||
| Intangible assets, net | 662,135 | 705,862 | ||||||
| Deferred financing costs, net of accumulated amortization | 8,845 | 12,927 | ||||||
| Other | 1,784 | 1,587 | ||||||
| Total assets | $ | 2,168,633 | $ | 2,196,742 | ||||
| LIABILITIES AND MEMBERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Due to manager - related party | $ | 4,300 | $ | 3,282 | ||||
| Accounts payable | 29,199 | 36,036 | ||||||
| Accrued expenses | 23,827 | 23,047 | ||||||
| Current portion of notes payable and capital leases | 1,952 | 1,075 | ||||||
| Current portion of long-term debt | 34,535 | 49,325 | ||||||
| Fair value of derivative instruments | 39,339 | 43,496 | ||||||
| Customer deposits | 4,679 | 4,635 | ||||||
| Other | 11,071 | 10,390 | ||||||
| Total current liabilities | 148,902 | 171,286 | ||||||
| Notes payable and capital leases, net of current portion | 2,026 | 420 | ||||||
| Long-term debt, net of current portion | 1,086,053 | 1,089,559 | ||||||
| Deferred income taxes | 177,262 | 156,328 | ||||||
| Fair value of derivative instruments | 15,576 | 51,729 | ||||||
| Other | 44,954 | 40,725 | ||||||
| Total liabilities | 1,474,773 | 1,510,047 | ||||||
| Commitments and contingencies | - | - | ||||||
| Members’ equity: | ||||||||
| LLC interests, no par value; 500,000,000 authorized; 46,338,225 LLC interests issued and | ||||||||
| outstanding at December 31, 2011 and 45,715,448 LLC interests issued and outstanding at December 31, 2010 | 951,729 | 964,430 | ||||||
| Additional paid in capital | 21,447 | 21,956 | ||||||
| Accumulated other comprehensive loss | (27,412) | (25,812) | ||||||
| Accumulated deficit | (242,082) | (269,425) | ||||||
| Total members’ equity | 703,682 | 691,149 | ||||||
| Noncontrolling interests | (9,822) | (4,454) | ||||||
| Total equity | 693,860 | 686,695 | ||||||
| Total liabilities and equity | $ | 2,168,633 | $ | 2,196,742 | ||||
| ___________________________________ | ||||||||
| (1) Reclassified to conform to current period presentation. |
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| MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| ($ in Thousands, Except Share and Per Share Data) | ||||||||||||||
| Year Ended December 31, 2011 | Year Ended December 31, 2010 | Year Ended December 31, 2009 | ||||||||||||
| Revenue | ||||||||||||||
| Revenue from product sales | $ | 639,521 | $ | 514,344 | $ | 394,200 | ||||||||
| Revenue from product sales - utility | 140,746 | 113,752 | 95,769 | |||||||||||
| Service revenue | 203,532 | 204,852 | 215,349 | |||||||||||
| Financing and equipment lease income | 4,992 | 7,843 | 4,758 | |||||||||||
| Total revenue | 988,791 | 840,791 | 710,076 | |||||||||||
| Costs and expenses | ||||||||||||||
| Cost of product sales | 437,049 | 326,734 | 233,376 | |||||||||||
| Cost of product sales - utility | 116,413 | 90,542 | 73,907 | |||||||||||
| Cost of services | 52,744 | 53,088 | 46,317 | |||||||||||
| Selling, general and administrative | 202,486 | 201,787 | 209,783 | |||||||||||
| Fees to manager - related party | 15,475 | 10,051 | 4,846 | |||||||||||
| Goodwill impairment | - | - | 71,200 | |||||||||||
| Depreciation | 33,815 | 29,721 | 36,813 | |||||||||||
| Amortization of intangibles | 42,107 | 34,898 | 60,892 | |||||||||||
| Loss on disposal of assets | 1,522 | 17,869 | - | |||||||||||
| Total operating expenses | 901,611 | 764,690 | 737,134 | |||||||||||
| Operating income (loss) | 87,180 | 76,101 | (27,058 | ) | ||||||||||
| Other income (expense) | ||||||||||||||
| Interest income | 112 | 29 | 119 | |||||||||||
| Interest expense(1) | (59,361 | ) | (106,834 | ) | (95,456 | ) | ||||||||
| Equity in earnings and amortization charges of investee | 22,763 | 31,301 | 22,561 | |||||||||||
| Loss on derivative instruments | - | - | (25,238 | ) | ||||||||||
| Other income, net | 912 | 712 | 570 | |||||||||||
| Net income (loss) from continuing operations before income taxes | 51,606 | 1,309 | (124,502 | ) | ||||||||||
| (Provision) benefit for income taxes | (22,718 | ) | 8,697 | 15,818 | ||||||||||
| Net income (loss) from continuing operations | $ | 28,888 | $ | 10,006 | $ | (108,684 | ) | |||||||
| Net income (loss) from discontinued operations, net of taxes | - | 81,323 | (21,860 | ) | ||||||||||
| Net income (loss) | $ | 28,888 | $ | 91,329 | $ | (130,544 | ) | |||||||
| Less: net income (loss) attributable to noncontrolling interests | 1,545 | 659 | (1,377 | ) | ||||||||||
| Net income (loss) attributable to MIC LLC | $ | 27,343 | $ | 90,670 | $ | (129,167 | ) | |||||||
| Basic income (loss) per share from continuing operations attributable | ||||||||||||||
| to MIC LLC interest holders | $ | 0.59 | $ | 0.21 | $ | (2.43 | ) | |||||||
| Basic income (loss) per share from discontinued operations attributable | ||||||||||||||
| to MIC LLC interest holders | - | 1.78 | (0.44 | ) | ||||||||||
| Basic income (loss) per share attributable to MIC LLC interest holders | $ | 0.59 | $ | 1.99 | $ | (2.87 | ) | |||||||
| Weighted average number of shares outstanding: basic | 45,995,207 | 45,549,803 | 45,020,085 | |||||||||||
| Diluted income (loss) per share from continuing operations attributable | ||||||||||||||
| to MIC LLC interest holders | $ | 0.59 | $ | 0.21 | $ | (2.43 | ) | |||||||
| Diluted income (loss) per share from discontinued operations | ||||||||||||||
| attributable to MIC LLC interest holders | - | 1.78 | (0.44 | ) | ||||||||||
| Diluted income (loss) per share attributable to MIC LLC interest holders | $ | 0.59 | $ | 1.99 | $ | (2.87 | ) | |||||||
| Weighted average number of shares outstanding: diluted | 46,021,015 | 45,631,610 | 45,020,085 | |||||||||||
| Cash distributions declared per share | $ | 0.80 | $ | - | $ | - | ||||||||
| ||||||||||||||
_____________________ | ||
| (1) | Interest expense includes non-cash gains on derivative instruments of $18.2 million for the year ended December 31, 2011. For the years ended December 31, 2010 and 2009, interest expense includes non-cash losses on derivative instruments of $23.4 million and $4.3 million, respectively. | |
| MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| ($ in Thousands) | ||||||||||||||
| Year Ended December 31, 2011 | Year Ended December 31, 2010 | Year Ended December 31, 2009 | ||||||||||||
| Operating activities | ||||||||||||||
| Net income (loss) | $ | 28,888 | $ | 91,329 | $ | (130,544 | ) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating | ||||||||||||||
| activities from continuing operations: | ||||||||||||||
| Net (income) loss from discontinued operations before noncontrolling interests | - | (81,323 | ) | 21,860 | ||||||||||
| Non-cash goodwill impairment | - | - | 71,200 | |||||||||||
| Depreciation and amortization of property and equipment | 40,454 | 36,276 | 42,899 | |||||||||||
| Amortization of intangible assets | 42,107 | 34,898 | 60,892 | |||||||||||
| Loss on disposal of assets | 617 | 17,869 | - | |||||||||||
| Equity in earnings and amortization charges of investees | (22,763 | ) | (31,301 | ) | (22,561 | ) | ||||||||
| Equity distributions from investees | - | 15,000 | 7,000 | |||||||||||
| Amortization of debt financing costs | 4,086 | 4,347 | 5,121 | |||||||||||
| Non-cash derivative (gains) losses | (18,244 | ) | 23,410 | 29,540 | ||||||||||
| Base management fees settled in LLC interests | 15,475 | 5,403 | 4,384 | |||||||||||
| Equipment lease receivable, net | 3,105 | 2,761 | 2,752 | |||||||||||
| Deferred rent | 385 | 413 | 183 | |||||||||||
| Deferred taxes | 19,209 | (11,729 | ) | (17,923 | ) | |||||||||
| Other non-cash expenses, net | 2,748 | 1,817 | 2,115 | |||||||||||
| Changes in other assets and liabilities, net of acquisitions: | ||||||||||||||
| Restricted cash | - | 50 | - | |||||||||||
| Accounts receivable | (4,633 | ) | (2,424 | ) | 13,020 | |||||||||
| Inventories | (5,061 | ) | (2,833 | ) | 1,233 | |||||||||
| Prepaid expenses and other current assets | (3,602 | ) | 453 | 2,944 | ||||||||||
| Due to manager - related party | 10 | (15 | ) | (3,438 | ) | |||||||||
| Accounts payable and accrued expenses | (9,696 | ) | (4,821 | ) | (4,670 | ) | ||||||||
| Income taxes payable | 668 | 1,051 | 535 | |||||||||||
| Other, net | (2,711 | ) | (2,076 | ) | (3,566 | ) | ||||||||
| Net cash provided by operating activities from continuing operations | 91,042 | 98,555 | 82,976 | |||||||||||
| Investing activities | ||||||||||||||
| Acquisitions of businesses and investments, net of cash acquired | (23,149 | ) | - | - | ||||||||||
| Proceeds from sale of assets | 17,006 | - | - | |||||||||||
| Proceeds from sale of investment | - | - | 29,500 | |||||||||||
| Purchases of property and equipment | (33,764 | ) | (22,690 | ) | (30,320 | ) | ||||||||
| Investment in capital leased assets | (24 | ) | (2,976 | ) | - | |||||||||
| Other | 249 | 892 | 304 | |||||||||||
| Net cash used in investing activities from continuing operations | (39,682 | ) | (24,774 | ) | (516 | ) | ||||||||
| Financing activities | ||||||||||||||
| Proceeds from long-term debt | 13,406 | 141 | 10,000 | |||||||||||
| Net proceeds (payments) on line of credit facilities | 4,600 | 500 | (45,400 | ) | ||||||||||
| Dividends paid to holders of LLC interests | (27,618 | ) | - | - | ||||||||||
| Contributions received from noncontrolling interests | - | 300 | - | |||||||||||
| Distributions paid to noncontrolling interests | (8,077 | ) | (5,346 | ) | (583 | ) | ||||||||
| Payment of long-term debt | (36,330 | ) | (74,036 | ) | (81,621 | ) | ||||||||
| Debt financing costs paid | (4 | ) | (186 | ) | - | |||||||||
| Change in restricted cash | 1,010 | 2,236 | (33 | ) | ||||||||||
| Payment of notes and capital lease obligations | (124 | ) | (137 | ) | (181 | ) | ||||||||
| Net cash used in financing activities from continuing |
| (53,137 | ) |
| (76,528 | ) |
| (117,818 | ) | |||||
| operations | ||||||||||||||
| Net change in cash and cash equivalents from continuing operations | (1,777 | ) | (2,747 | ) | (35,358 | ) | ||||||||
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS- continued | ||||||||||||||
| ($ in Thousands) | ||||||||||||||
| Year Ended December 31, 2011 | Year Ended December 31, 2010 | Year Ended December 31, 2009 | ||||||||||||
| Cash flows (used in) provided by discontinued operations: | ||||||||||||||
| Net cash used in operating activities | - | (12,703 | ) | (4,732 | ) | |||||||||
| Net cash provided by (used in) investing activities | - | 134,356 | (445 | ) | ||||||||||
| Net cash (used in) provided by financing activities | - | (124,183 | ) | 2,144 | ||||||||||
| Cash used in discontinued operations(1) | - | (2,530 | ) | (3,033 | ) | |||||||||
| Change in cash of discontinued operations held for sale(1) | - | 2,385 | (208 | ) | ||||||||||
| Net change in cash and cash equivalents | (1,777 | ) | (2,892 | ) | (38,599 | ) | ||||||||
| Cash and cash equivalents, beginning of period | 24,563 | 27,455 | 66,054 | |||||||||||
| Cash and cash equivalents, end of period- continuing operations | $ | 22,786 | $ | 24,563 | $ | 27,455 | ||||||||
| Supplemental disclosures of cash flow information for continuing | ||||||||||||||
| operations: | ||||||||||||||
| Non-cash investing and financing activities: | ||||||||||||||
| Accrued purchases of property and equipment | $ | 767 | $ | 431 | $ | 1,277 | ||||||||
| Acquisition of equipment through capital leases | $ | 2,663 | $ | 139 | $ | - | ||||||||
| Issuance of LLC interests to manager for base management fees | $ | 14,467 | $ | 4,083 | $ | 2,491 | ||||||||
| Issuance of LLC interests to independent directors | $ | 450 | $ | 450 | $ | 450 | ||||||||
| Taxes paid | $ | 2,913 | $ | 1,655 | $ | 1,231 | ||||||||
| Interest paid | $ | 72,949 | $ | 78,718 | $ | 87,308 | ||||||||
______________________ | ||
(1) | Cash of discontinued operations held for sale is reported in assets of discontinued operations held for sale in the accompanying consolidated balance sheets. The cash used in discontinued operations is different than the change in cash of discontinued operations held for sale due to intercompany transactions that are eliminated in consolidation. | |
MACQUARIE INFRASTRUCTURE COMPANY LLC | |||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS - MD&A | |||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | Year Ended | Change | ||||||||||||||||||||||||||||||||
| December 31, | Favorable/(Unfavorable) | December 31, | Favorable/(Unfavorable) | ||||||||||||||||||||||||||||||||
| 2011 | 2010 | $ | % | 2011 | 2010 | $ | % | ||||||||||||||||||||||||||||
| ($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from product sales | $ | 165,041 | $ | 139,932 | 25,109 | 17.9 | $ | 639,521 | $ | 514,344 | 125,177 | 24.3 | |||||||||||||||||||||||
| Revenue from product sales - utility | 34,964 | 30,235 | 4,729 | 15.6 | 140,746 | 113,752 | 26,994 | 23.7 | |||||||||||||||||||||||||||
| Service revenue | 48,942 | 47,254 | 1,688 | 3.6 | 203,532 | 204,852 | (1,320 | ) | (0.6 | ) | |||||||||||||||||||||||||
| Financing and equipment lease income | 1,208 | 4,076 | (2,868 | ) | (70.4 | ) | 4,992 | 7,843 | (2,851 | ) | (36.4 | ) | |||||||||||||||||||||||
| Total revenue | 250,155 | 221,497 | 28,658 | 12.9 | 988,791 | 840,791 | 148,000 | 17.6 | |||||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||||||||
| Cost of product sales | 111,023 | 90,950 | (20,073 | ) | (22.1 | ) | 437,049 | 326,734 | (110,315 | ) | (33.8 | ) | |||||||||||||||||||||||
| Cost of product sales - utility | 29,571 | 23,611 | (5,960 | ) | (25.2 | ) | 116,413 | 90,542 | (25,871 | ) | (28.6 | ) | |||||||||||||||||||||||
| Cost of services | 12,040 | 12,000 | (40 | ) | (0.3 | ) | 52,744 | 53,088 | 344 | 0.6 | |||||||||||||||||||||||||
| Gross profit | 97,521 | 94,936 | 2,585 | 2.7 | 382,585 | 370,427 | 12,158 | 3.3 | |||||||||||||||||||||||||||
| Selling, general and administrative | 51,801 | 51,045 | (756 | ) | (1.5 | ) | 202,486 | 201,787 | (699 | ) | (0.3 | ) | |||||||||||||||||||||||
| Fees to manager - related party | 4,222 | 3,214 | (1,008 | ) | (31.4 | ) | 15,475 | 10,051 | (5,424 | ) | (54.0 | ) | |||||||||||||||||||||||
| Depreciation | 7,910 | 7,824 | (86 | ) | (1.1 | ) | 33,815 | 29,721 | (4,094 | ) | (13.8 | ) | |||||||||||||||||||||||
| Amortization of intangibles | 8,707 | 8,744 | 37 | 0.4 | 42,107 | 34,898 | (7,209 | ) | (20.7 | ) | |||||||||||||||||||||||||
| (Gain) loss on disposal of assets | (221 | ) | 17,869 | 18,090 | 101.2 | 1,522 | 17,869 | 16,347 | 91.5 | ||||||||||||||||||||||||||
| Total operating expenses | 72,419 | 88,696 | 16,277 | 18.4 | 295,405 | 294,326 | (1,079 | ) | (0.4 | ) | |||||||||||||||||||||||||
| Operating income | 25,102 | 6,240 | 18,862 | NM | 87,180 | 76,101 | 11,079 | 14.6 | |||||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||||||||
| Interest income | 8 | 7 | 1 | 14.3 | 112 | 29 | 83 | NM | |||||||||||||||||||||||||||
| Interest expense(1) | (10,388 | ) | (8,329 | ) | (2,059 | ) | (24.7 | ) | (59,361 | ) | (106,834 | ) | 47,473 | 44.4 | |||||||||||||||||||||
| Equity in earnings and amortization charges of investees | 8,695 | 12,130 | (3,435 | ) | (28.3 | ) | 22,763 | 31,301 | (8,538 | ) | (27.3 | ) | |||||||||||||||||||||||
| Other income (expense), net | 107 | (109 | ) | 216 | 198.2 | 912 | 712 | 200 | 28.1 | ||||||||||||||||||||||||||
| Net income from continuing operations before income taxes | 23,524 | 9,939 | 13,585 | 136.7 | 51,606 | 1,309 | 50,297 | NM | |||||||||||||||||||||||||||
| (Provision) benefit for income taxes | (11,083 | ) | (3,844 | ) | (7,239 | ) | (188.3 | ) | (22,718 | ) | 8,697 | (31,415 | ) | NM | |||||||||||||||||||||
Net income from continuing operations | $ | 12,441 | $ | 6,095 | 6,346 | 104.1 | $ | 28,888 | $ | 10,006 | 18,882 | 188.7 | |||||||||||||||||||||||
| Net income from discontinued operations, net of taxes | - | 124 | (124 | ) | (100.0 | ) | - | 81,323 | (81,323 | ) | (100.0 | ) | |||||||||||||||||||||||
| Net income | $ | 12,441 | $ | 6,219 | 6,222 | 100.0 | $ | 28,888 | $ | 91,329 | (62,441 | ) | (68.4 | ) | |||||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 149 | 1,976 | 1,827 | 92.5 | 1,545 | 659 | (886 | ) | (134.4 | ) | |||||||||||||||||||||||||
| Net income attributable to MIC LLC | $ | 12,292 | $ | 4,243 | 8,049 | 189.7 | $ | 27,343 | $ | 90,670 | (63,327 | ) | (69.8 | ) | |||||||||||||||||||||
| NM - Not meaningful | ||
(1) | Interest expense includes non-cash gains on derivative instruments of $8.7 million and $18.2 million for the quarter and year ended December 31, 2011, respectively, and non-cash gains of $12.1 million and non-cash losses of $23.4 million for the quarter and year ended December 31, 2010, respectively. | |
| MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||||||||||||
| RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||||||||||||||||||||
| TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE | ||||||||||||||||||||||||
| CASH FLOW | ||||||||||||||||||||||||
| Quarter Ended | Change | Year Ended | Change | |||||||||||||||||||||
| December 31, | Favorable/(Unfavorable) | December 31, | Favorable/(Unfavorable) | |||||||||||||||||||||
| 2011 | 2010 | $ | % | 2011 | 2010 | $ | % | |||||||||||||||||
| ($ In Thousands) (Unaudited) | ||||||||||||||||||||||||
| Net income attributable to MIC LLC from continuing operations(1) | $ | 12,292 | $ | 4,119 | $ | 27,343 | $ | 9,483 | ||||||||||||||||
| Interest expense, net(2) | 10,380 | 8,322 | 59,249 | 106,805 | ||||||||||||||||||||
| Provision (benefit) for income taxes | 11,083 | 3,844 | 22,718 | (8,697 | ) | |||||||||||||||||||
| Depreciation(3) | 7,910 | 7,824 | 33,815 | 29,721 | ||||||||||||||||||||
| Depreciation - cost of services(3) | 1,670 | 1,645 | 6,639 | 6,555 | ||||||||||||||||||||
| Amortization of intangibles(4) | 8,707 | 8,744 | 42,107 | 34,898 | ||||||||||||||||||||
| (Gain) loss on disposal of assets | (332 | ) | 17,869 | 617 | 17,869 | |||||||||||||||||||
| Equity in earnings and amortization charges of investees(5) | (8,695 | ) | (12,130 | ) | (22,763 | ) | (16,301 | ) | ||||||||||||||||
| Base management fees settled in LLC interests | 4,222 | 3,214 | 15,475 | 5,403 | ||||||||||||||||||||
| Other non-cash expense, net | 705 | 1,081 | 4,678 | 2,753 | ||||||||||||||||||||
| EBITDA excluding non-cash items from continuing operations | $ | 47,942 | $ | 44,532 | 3,410 | 7.7 | $ | 189,878 | $ | 188,489 | 1,389 | 0.7 | ||||||||||||
| EBITDA excluding non-cash items from continuing operations | $ | 47,942 | $ | 44,532 | $ | 189,878 | $ | 188,489 | ||||||||||||||||
| Interest expense, net(2) | (10,380 | ) | (8,322 | ) | (59,249 | ) | (106,805 | ) | ||||||||||||||||
| Interest rate swap breakage fees(2) | (80 | ) | (839 | ) | (2,327 | ) | (5,528 | ) | ||||||||||||||||
| Non-cash derivative (gains) losses recorded in interest expense(2) | (8,591 | ) | (11,248 | ) | (15,917 | ) | 28,938 | |||||||||||||||||
| Amortization of debt financing costs(2) | 1,012 | 1,048 | 4,086 | 4,347 | ||||||||||||||||||||
| Equipment lease receivables, net | 834 | 559 | 3,105 | 2,761 | ||||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | (554 | ) | (1,888 | ) | (3,509 | ) | (3,032 | ) | ||||||||||||||||
| Changes in working capital | (6,306 | ) | (5,269 | ) | (25,025 | ) | (10,615 | ) | ||||||||||||||||
| Cash provided by operating activities | 23,877 | 18,573 | 91,042 | 98,555 | ||||||||||||||||||||
| Changes in working capital | 6,306 | 5,269 | 25,025 | 10,615 | ||||||||||||||||||||
| Maintenance capital expenditures | (5,791 | ) | (7,707 | ) | (18,062 | ) | (14,509 | ) | ||||||||||||||||
| Free cash flow from continuing operations | $ | 24,392 | $ | 16,135 | 8,257 | 51.2 | $ | 98,005 | $ | 94,661 | 3,344 | 3.5 | ||||||||||||
(1) | Net income attributable to MIC LLC from continuing operations excludes net income attributable to noncontrolling interests of $149,000 and $1.5 million for the quarter and year ended December 31, 2011, respectively, and net income attributable to noncontrolling interests of $2.0 million and $523,000 for the quarter and year ended December 31, 2010, respectively. | |
(2) | Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. | |
(3) | Depreciation - cost of services includes depreciation expense for District Energy, which is reported in cost of services in our consolidated statements of operations. Depreciation and Depreciation - cost of services does not include acquisition-related step-up depreciation expense of $2.0 million and $7.5 million for the quarter and year ended December 31, 2011, respectively, and $1.7 million and $6.9 million for the quarter and year ended December 31, 2010, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated statements of operations. | |
(4) | Amortization of intangibles does not include acquisition-related step-up amortization expense of $85,000 and $606,000 for the quarter and year ended December 31, 2011, respectively, and $283,000 and $1.1 million for the quarter and year ended December 31, 2010, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated statements of operations. | |
(5) | Equity in earnings and amortization charges of investees in the above table includes our 50% share of IMTT's earnings, offset by distributions we received only up to our share of the earnings recorded. | |
| MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||||||||||||||
| RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS | ||||||||||||||||||||||||||
AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||||||||||||||||||||
IMTT | ||||||||||||||||||||||||||
| Quarter Ended December 31, |
| Year Ended December 31, |
| |||||||||||||||||||||||
| 2011 | 2010 | Change Favorable/(Unfavorable) | 2011 | 2010 | Change Favorable/(Unfavorable) | |||||||||||||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||
| ($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Terminal revenue | 107,177 | 94,083 | 13,094 | 13.9 | 417,422 | 372,205 | 45,217 | 12.1 | ||||||||||||||||||
| Environmental response revenue | 7,565 | 15,626 | (8,061 | ) | (51.6 | ) | 29,670 | 184,979 | (155,309 | ) | (84.0 | ) | ||||||||||||||
| Total revenue | 114,742 | 109,709 | 5,033 | 4.6 | 447,092 | 557,184 | (110,092 | ) | (19.8 | ) | ||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||
| Terminal operating costs | 47,763 | 43,867 | (3,896 | ) | (8.9 | ) | 188,222 | 168,713 | (19,509 | ) | (11.6 | ) | ||||||||||||||
| Environmental response operating costs | 6,982 | 7,738 | 756 | 9.8 | 23,013 | 115,937 | 92,924 | 80.2 | ||||||||||||||||||
| Total operating costs | 54,745 | 51,605 | (3,140 | ) | (6.1 | ) | 211,235 | 284,650 | 73,415 | 25.8 | ||||||||||||||||
| Terminal gross profit | 59,414 | 50,216 | 9,198 | 18.3 | 229,200 | 203,492 | 25,708 | 12.6 | ||||||||||||||||||
| Environmental response gross profit | 583 | 7,888 | (7,305 | ) | (92.6 | ) | 6,657 | 69,042 | (62,385 | ) | (90.4 | ) | ||||||||||||||
| Gross profit | 59,997 | 58,104 | 1,893 | 3.3 | 235,857 | 272,534 | (36,677 | ) | (13.5 | ) | ||||||||||||||||
| General and administrative expenses | 7,401 | 7,323 | (78 | ) | (1.1 | ) | 30,976 | 37,125 | 6,149 | 16.6 | ||||||||||||||||
| Depreciation and amortization | 16,383 | 15,141 | (1,242 | ) | (8.2 | ) | 64,470 | 61,277 | (3,193 | ) | (5.2 | ) | ||||||||||||||
| Operating income | 36,213 | 35,640 | 573 | 1.6 | 140,411 | 174,132 | (33,721 | ) | (19.4 | ) | ||||||||||||||||
| Interest (expense) income, net(1) | (6,944 | ) | 8,150 | (15,094 | ) | (185.2 | ) | (52,257 | ) | (50,335 | ) | (1,922 | ) | (3.8 | ) | |||||||||||
| Other income | 272 | 372 | (100 | ) | (26.9 | ) | 1,486 | 1,953 | (467 | ) | (23.9 | ) | ||||||||||||||
| Provision for income taxes | (9,836 | ) | (17,619 | ) | 7,783 | 44.2 | (34,820 | ) | (53,521 | ) | 18,701 | 34.9 | ||||||||||||||
| Noncontrolling interests | (48 | ) | 82 | (130 | ) | (158.5 | ) | 137 | (165 | ) | 302 | 183.0 | ||||||||||||||
| Net income | 19,657 | 26,625 | (6,968 | ) | (26.2 | ) | 54,957 | 72,064 | (17,107 | ) | (23.7 | ) | ||||||||||||||
| Reconciliation of net income to EBITDA excluding non-cash items: | ||||||||||||||||||||||||||
| Net income | 19,657 | 26,625 | 54,957 | 72,064 | ||||||||||||||||||||||
| Interest expense (income), net(1) | 6,944 | (8,150 | ) | 52,257 | 50,335 | |||||||||||||||||||||
| Provision for income taxes | 9,836 | 17,619 | 34,820 | 53,521 | ||||||||||||||||||||||
| Depreciation and amortization | 16,383 | 15,141 | 64,470 | 61,277 | ||||||||||||||||||||||
| Other non-cash income (expense) | 42 | (88 | ) | (114 | ) | (361 | ) | |||||||||||||||||||
| EBITDA excluding non-cash items | 52,862 | 51,147 | 1,715 | 3.4 | 206,390 | 236,836 | (30,446 | ) | (12.9 | ) | ||||||||||||||||
| EBITDA excluding non-cash items | 52,862 | 51,147 | 206,390 | 236,836 | ||||||||||||||||||||||
| Interest (expense) income, net(1) | (6,944 | ) | 8,150 | (52,257 | ) | (50,335 | ) | |||||||||||||||||||
| Non-cash derivative (gains) losses recorded in interest expense(1) | (1,998 | ) | (17,441 | ) | 16,655 | 15,653 | ||||||||||||||||||||
| Amortization of debt financing costs(1) | 807 | 683 | 3,233 | 2,011 | ||||||||||||||||||||||
| Provision for income taxes, net of changes in deferred taxes | 5,596 | (1,702 | ) | (8,169 | ) | (12,514 | ) | |||||||||||||||||||
| Changes in working capital | (6,233 | ) | 24,229 | (36,701 | ) | 4,536 | ||||||||||||||||||||
| Cash provided by operating activities | 44,090 | 65,066 | 129,151 | 196,187 | ||||||||||||||||||||||
| Changes in working capital | 6,233 | (24,229 | ) | 36,701 | (4,536 | ) | ||||||||||||||||||||
| Maintenance capital expenditures | (21,199 | ) | (15,826 | ) | (57,257 | ) | (44,995 | ) | ||||||||||||||||||
| Free cash flow | 29,124 | 25,011 | 4,113 | 16.4 | 108,595 | 146,656 | (38,061 | ) | (26.0 | ) | ||||||||||||||||
| _____________________ | ||||||||||||||||||||||||||
(1) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. | ||||||||||||||||||||||||||
The Gas Company | ||||||||||||||||||||||||||
| Quarter Ended December 31, |
| Year Ended December 31, |
| |||||||||||||||||||||||
| 2011 | 2010 | Change Favorable/(Unfavorable) | 2011 | 2010 | Change Favorable/(Unfavorable) | |||||||||||||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||
| ($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||
| Contribution margin | ||||||||||||||||||||||||||
| Revenue - non-utility | 29,678 | 24,095 | 5,583 | 23.2 | 112,020 | 96,855 | 15,165 | 15.7 | ||||||||||||||||||
| Cost of revenue - non-utility | 14,956 | 11,872 | (3,084 | ) | (26.0 | ) | 60,369 | 48,896 | (11,473 | ) | (23.5 | ) | ||||||||||||||
| Contribution margin - non-utility | 14,722 | 12,223 | 2,499 | 20.4 | 51,651 | 47,959 | 3,692 | 7.7 | ||||||||||||||||||
| Revenue - utility | 34,964 | 30,235 | 4,729 | 15.6 | 140,746 | 113,752 | 26,994 | 23.7 | ||||||||||||||||||
| Cost of revenue - utility | 25,455 | 20,713 | (4,742 | ) | (22.9 | ) | 102,213 | 76,891 | (25,322 | ) | (32.9 | ) | ||||||||||||||
| Contribution margin - utility | 9,509 | 9,522 | (13 | ) | (0.1 | ) | 38,533 | 36,861 | 1,672 | 4.5 | ||||||||||||||||
| Total contribution margin | 24,231 | 21,745 | 2,486 | 11.4 | 90,184 | 84,820 | 5,364 | 6.3 | ||||||||||||||||||
Production | 2,089 | 1,599 | (490 | ) | (30.6 | ) | 7,410 | 6,725 | (685 | ) | (10.2 | ) | ||||||||||||||
Transmission and distribution | 5,348 | 4,219 | (1,129 | ) | (26.8 | ) | 19,776 | 19,269 | (507 | ) | (2.6 | ) | ||||||||||||||
| Gross profit | 16,794 | 15,927 | 867 | 5.4 | 62,998 | 58,826 | 4,172 | 7.1 | ||||||||||||||||||
| Selling, general and administrative expenses | 3,353 | 4,127 | 774 | 18.8 | 16,025 | 16,684 | 659 | 3.9 | ||||||||||||||||||
| Depreciation and amortization | 1,800 | 1,723 | (77 | ) | (4.5 | ) | 7,218 | 6,649 | (569 | ) | (8.6 | ) | ||||||||||||||
| Operating income | 11,641 | 10,077 | 1,564 | 15.5 | 39,755 | 35,493 | 4,262 | 12.0 | ||||||||||||||||||
| Interest expense, net(1) | (1,226 | ) | (725 | ) | (501 | ) | (69.1 | ) | (9,138 | ) | (16,505 | ) | 7,367 | 44.6 | ||||||||||||
| Other expense | (11 | ) | (80 | ) | 69 | 86.3 | (220 | ) | (90 | ) | (130 | ) | (144.4 | ) | ||||||||||||
| Provision for income taxes | (4,324 | ) | (3,631 | ) | (693 | ) | (19.1 | ) | (12,225 | ) | (7,400 | ) | (4,825 | ) | (65.2 | ) | ||||||||||
| Net income(2) | 6,080 | 5,641 | 439 | 7.8 | 18,172 | 11,498 | 6,674 | 58.0 | ||||||||||||||||||
| Reconciliation of net income to EBITDA excluding non-cash items: | ||||||||||||||||||||||||||
| Net income(2) | 6,080 | 5,641 | 18,172 | 11,498 | ||||||||||||||||||||||
| Interest expense, net(1) | 1,226 | 725 | 9,138 | 16,505 | ||||||||||||||||||||||
| Provision for income taxes | 4,324 | 3,631 | 12,225 | 7,400 | ||||||||||||||||||||||
| Depreciation and amortization | 1,800 | 1,723 | 7,218 | 6,649 | ||||||||||||||||||||||
| Other non-cash expense | 361 | 785 | 2,279 | 2,384 | ||||||||||||||||||||||
| EBITDA excluding non-cash items | 13,791 | 12,505 | 1,286 | 10.3 | 49,032 | 44,436 | 4,596 | 10.3 | ||||||||||||||||||
| EBITDA excluding non-cash items | 13,791 | 12,505 | 49,032 | 44,436 | ||||||||||||||||||||||
| Interest expense, net(1) | (1,226 | ) | (725 | ) | (9,138 | ) | (16,505 | ) | ||||||||||||||||||
| Non-cash derivative (gains) losses recorded in interest expense(1) | (1,157 | ) | (1,611 | ) | (225 | ) | 7,334 | |||||||||||||||||||
| Amortization of debt financing costs(1) | 120 | 119 | 478 | 478 | ||||||||||||||||||||||
| Provision for income taxes, net of changes in deferred taxes | 971 | (3,057 | ) | (3,136 | ) | (4,333 | ) | |||||||||||||||||||
| Changes in working capital | (1,871 | ) | (759 | ) | (9,350 | ) | (2,079 | ) | ||||||||||||||||||
| Cash provided by operating activities | 10,628 | 6,472 | 27,661 | 29,331 | ||||||||||||||||||||||
| Changes in working capital | 1,871 | 759 | 9,350 | 2,079 | ||||||||||||||||||||||
| Maintenance capital expenditures | (2,215 | ) | (4,267 | ) | (8,503 | ) | (6,275 | ) | ||||||||||||||||||
| Free cash flow | 10,284 | 2,964 | 7,320 | NM | 28,508 | 25,135 | 3,373 | 13.4 | ||||||||||||||||||
| ||||||||||||||||||||||||||
_____________________ | ||
| NM- Not meaningful | ||
| (1) | Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. | |
| (2) | Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. | |
District Energy | |||||||||||||||||||||||||||||||
| Quarter Ended December 31, | Change Favorable/(Unfavorable) | Year Ended December 31, | Change Favorable/(Unfavorable) | ||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||
| $ | $ | $ | % | $ | $ | $ | % | ||||||||||||||||||||||||
| ($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||||
| Cooling capacity revenue | 5,502 | 5,327 | 175 | 3.3 | 21,784 | 21,162 | 622 | 2.9 | |||||||||||||||||||||||
| Cooling consumption revenue | 3,262 | 2,883 | 379 | 13.1 | 22,707 | 24,386 | (1,679 | ) | (6.9 | ) | |||||||||||||||||||||
| Other revenue | 676 | 881 | (205 | ) | (23.3 | ) | 2,957 | 3,371 | (414 | ) | (12.3 | ) | |||||||||||||||||||
| Finance lease revenue | 1,208 | 4,076 | (2,868 | ) | (70.4 | ) | 4,992 | 7,843 | (2,851 | ) | (36.4 | ) | |||||||||||||||||||
| Total revenue | 10,648 | 13,167 | (2,519 | ) | (19.1 | ) | 52,440 | 56,762 | (4,322 | ) | (7.6 | ) | |||||||||||||||||||
| Direct expenses — electricity | 2,323 | 2,154 | (169 | ) | (7.8 | ) | 14,641 | 16,343 | 1,702 | 10.4 | |||||||||||||||||||||
| Direct expenses — other(1) | 4,715 | 5,471 | 756 | 13.8 | 19,961 | 20,349 | 388 | 1.9 | |||||||||||||||||||||||
| Direct expenses — total | 7,038 | 7,625 | 587 | 7.7 | 34,602 | 36,692 | 2,090 | 5.7 | |||||||||||||||||||||||
| Gross profit | 3,610 | 5,542 | (1,932 | ) | (34.9 | ) | 17,838 | 20,070 | (2,232 | ) | (11.1 | ) | |||||||||||||||||||
| Selling, general and administrative expenses | 925 | 867 | (58 | ) | (6.7 | ) | 3,374 | 3,217 | (157 | ) | (4.9 | ) | |||||||||||||||||||
| Amortization of intangibles | 345 | 345 | - | - | 1,368 | 1,368 | - | - | |||||||||||||||||||||||
| Operating income | 2,340 | 4,330 | (1,990 | ) | (46.0 | ) | 13,096 | 15,485 | (2,389 | ) | (15.4 | ) | |||||||||||||||||||
| Interest (expense) income, net(2) | (1,458 | ) | 195 | (1,653 | ) | NM | (13,208 | ) | (20,671 | ) | 7,463 | 36.1 | |||||||||||||||||||
| Other income | 166 | 268 | (102 | ) | (38.1 | ) | 1,478 | 1,804 | (326 | ) | (18.1 | ) | |||||||||||||||||||
| (Provision) benefit for income taxes | (344 | ) | (1,620 | ) | 1,276 | 78.8 | (212 | ) | 1,844 | (2,056 | ) | (111.5 | ) | ||||||||||||||||||
| Noncontrolling interests | (212 | ) | (694 | ) | 482 | 69.5 | (850 | ) | (1,284 | ) | 434 | 33.8 | |||||||||||||||||||
Net income (loss) | 492 | 2,479 | (1,987 | ) | (80.2 | ) | 304 | (2,822 | ) | 3,126 | 110.8 | ||||||||||||||||||||
| Reconciliation of net income (loss) to EBITDA excluding non-cash items: | |||||||||||||||||||||||||||||||
| Net income (loss) | 492 | 2,479 | 304 | (2,822 | ) | ||||||||||||||||||||||||||
| Interest expense (income), net(2) | 1,458 | (195 | ) | 13,208 | 20,671 | ||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 344 | 1,620 | 212 | (1,844 | ) | ||||||||||||||||||||||||||
| Depreciation(1) | 1,670 | 1,645 | 6,639 | 6,555 | |||||||||||||||||||||||||||
| Amortization of intangibles | 345 | 345 | 1,368 | 1,368 | |||||||||||||||||||||||||||
| Other non-cash expense (income) | 313 | (1,734 | ) | 964 | (1,082 | ) | |||||||||||||||||||||||||
| EBITDA excluding non-cash items | 4,622 | 4,160 | 462 | 11.1 | 22,695 | 22,846 | (151 | ) | (0.7 | ) | |||||||||||||||||||||
| EBITDA excluding non-cash items | 4,622 | 4,160 | 22,695 | 22,846 | |||||||||||||||||||||||||||
| Interest (expense) income, net(2) | (1,458 | ) | 195 | (13,208 | ) | (20,671 | ) | ||||||||||||||||||||||||
| Non-cash derivative (gains) losses recorded in interest expense(2) | (1,221 | ) | (2,870 | ) | 2,587 | 10,136 | |||||||||||||||||||||||||
| Amortization of debt financing costs(2) | 170 | 170 | 681 | 681 | |||||||||||||||||||||||||||
| Equipment lease receivable, net | 834 | 559 | 3,105 | 2,761 | |||||||||||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | 224 | - | (868 | ) | - | ||||||||||||||||||||||||||
| Changes in working capital | 1,128 | 2,867 | 520 | (794 | ) | ||||||||||||||||||||||||||
| Cash provided by operating activities | 4,299 | 5,081 | 15,512 | 14,959 | |||||||||||||||||||||||||||
| Changes in working capital | (1,128 | ) | (2,867 | ) | (520 | ) | 794 | ||||||||||||||||||||||||
| Maintenance capital expenditures | (370 | ) | (394 | ) | (659 | ) | (1,207 | ) | |||||||||||||||||||||||
| Free cash flow | 2,801 | 1,820 | 981 | 53.9 | 14,333 | 14,546 | (213 | ) | (1.5 | ) | |||||||||||||||||||||
| _____________________ | |
NM | - Not meaningful |
(1) | Includes depreciation expense of $1.7 million and $6.6 million for the quarter and year ended December 31, 2011, respectively, and $1.6 million and $6.6 million for the quarter and year ended December 31, 2010, respectively. |
(2) | Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. |
Atlantic Aviation | ||||||||||||||||||||||||||||||
| Quarter Ended December 31, | Change Favorable/(Unfavorable) | Year Ended December 31, | Change Favorable/(Unfavorable) | |||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||||||
| ($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Fuel revenue | 135,363 | 115,837 | 19,526 | 16.9 | 527,501 | 417,489 | 110,012 | 26.4 | ||||||||||||||||||||||
| Non-fuel revenue | 39,502 | 38,163 | 1,339 | 3.5 | 156,084 | 155,933 | 151 | 0.1 | ||||||||||||||||||||||
| Total revenue | 174,865 | 154,000 | 20,865 | 13.5 | 683,585 | 573,422 | 110,163 | 19.2 | ||||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||||||
| Cost of revenue-fuel | 92,745 | 76,156 | (16,589 | ) | (21.8 | ) | 363,694 | 265,493 | (98,201 | ) | (37.0 | ) | ||||||||||||||||||
| Cost of revenue-non-fuel | 5,001 | 4,376 | (625 | ) | (14.3 | ) | 18,142 | 16,397 | (1,745 | ) | (10.6 | ) | ||||||||||||||||||
| Total cost of revenue | 97,746 | 80,532 | (17,214 | ) | (21.4 | ) | 381,836 | 281,890 | (99,946 | ) | (35.5 | ) | ||||||||||||||||||
| Fuel gross profit | 42,618 | 39,681 | 2,937 | 7.4 | 163,807 | 151,996 | 11,811 | 7.8 | ||||||||||||||||||||||
| Non-fuel gross profit | 34,501 | 33,787 | 714 | 2.1 | 137,942 | 139,536 | (1,594 | ) | (1.1 | ) | ||||||||||||||||||||
| Gross profit | 77,119 | 73,468 | 3,651 | 5.0 | 301,749 | 291,532 | 10,217 | 3.5 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 44,043 | 44,764 | 721 | 1.6 | 174,148 | 174,526 | 378 | 0.2 | ||||||||||||||||||||||
| Depreciation and amortization | 14,472 | 14,500 | 28 | 0.2 | 67,336 | 56,602 | (10,734 | ) | (19.0 | ) | ||||||||||||||||||||
| (Gain) loss on disposal of assets | (221 | ) | 17,869 | 18,090 | 101.2 | 1,522 | 17,869 | 16,347 | 91.5 | |||||||||||||||||||||
| Operating income (loss) | 18,825 | (3,665 | ) | 22,490 | NM | 58,743 | 42,535 | 16,208 | 38.1 | |||||||||||||||||||||
| Interest expense, net(1) | (7,696 | ) | (7,797 | ) | 101 | 1.3 | (36,905 | ) | (69,409 | ) | 32,504 | 46.8 | ||||||||||||||||||
| Other expense | (49 | ) | (272 | ) | 223 | 82.0 | (244 | ) | (917 | ) | 673 | 73.4 | ||||||||||||||||||
| (Provision) benefit for income taxes | (7,716 | ) | 3,026 | (10,742 | ) | NM | (11,952 | ) | 9,497 | (21,449 | ) | NM | ||||||||||||||||||
| Net income (loss)(2) | 3,364 | (8,708 | ) | 12,072 | 138.6 | 9,642 | (18,294 | ) | 27,936 | 152.7 | ||||||||||||||||||||
| Reconciliation of net income (loss) to EBITDA excluding non-cash items: | ||||||||||||||||||||||||||||||
| Net income (loss)(2) | 3,364 | (8,708 | ) | 9,642 | (18,294 | ) | ||||||||||||||||||||||||
| Interest expense, net(1) | 7,696 | 7,797 | 36,905 | 69,409 | ||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 7,716 | (3,026 | ) | 11,952 | (9,497 | ) | ||||||||||||||||||||||||
| Depreciation and amortization | 14,472 | 14,500 | 67,336 | 56,602 | ||||||||||||||||||||||||||
| (Gain) loss on disposal of assets | (332 | ) | 17,869 | 617 | 17,869 | |||||||||||||||||||||||||
| Other non-cash (income) expense | (82 | ) | 634 | 228 | 1,388 | |||||||||||||||||||||||||
| EBITDA excluding non-cash items | 32,834 | 29,066 | 3,768 | 13.0 | 126,680 | 117,477 | 9,203 | 7.8 | ||||||||||||||||||||||
| EBITDA excluding non-cash items | 32,834 | 29,066 | 126,680 | 117,477 | ||||||||||||||||||||||||||
| Interest expense, net(1) | (7,696 | ) | (7,797 | ) | (36,905 | ) | (69,409 | ) | ||||||||||||||||||||||
| Interest rate swap breakage fees(1) | (80 | ) | (839 | ) | (2,327 | ) | (5,528 | ) | ||||||||||||||||||||||
| Non-cash derivative (gains) losses recorded in interest expense(1) | (6,214 | ) | (6,764 | ) | (18,280 | ) | 11,473 | |||||||||||||||||||||||
| Amortization of debt financing costs(1) | 722 | 759 | 2,927 | 2,984 | ||||||||||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | (539 | ) | (1,188 | ) | (1,481 | ) | (1,486 | ) | ||||||||||||||||||||||
| Changes in working capital | (7,825 | ) | (1,612 | ) | (15,307 | ) | (1,476 | ) | ||||||||||||||||||||||
| Cash provided by operating activities | 11,202 | 11,625 | 55,307 | 54,035 | ||||||||||||||||||||||||||
| Changes in working capital | 7,825 | 1,612 | 15,307 | 1,476 | ||||||||||||||||||||||||||
| Maintenance capital expenditures | (3,206 | ) | (3,046 | ) | (8,900 | ) | (7,027 | ) | ||||||||||||||||||||||
| Free cash flow | 15,821 | 10,191 | 5,630 | 55.2 | 61,714 | 48,484 | 13,230 | 27.3 | ||||||||||||||||||||||
| _____________________ | |
NM | - Not meaningful |
(1) | Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
(2) | Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF PROPORTIONATELY COMBINED NET (LOSS) INCOME TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||||||||||||||||||||||
| /------------------------------------For the Year Ended December 31, 2011--------------------------------------/ | |||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | IMTT 100% | District Energy 100% | |||||||||||||||||||
| Net income (loss) attributable to MIC LLC from continuing operations | 27,479 | 18,172 | 152 | 9,642 | (23,538 | ) | 31,907 | 54,957 | 304 | ||||||||||||||||||
| Interest expense (income), net(2) | 26,129 | 9,138 | 6,605 | 36,905 | (2 | ) | 78,775 | 52,257 | 13,208 | ||||||||||||||||||
| Provision (benefit) for income taxes | 17,410 | 12,225 | 106 | 11,952 | (1,671 | ) | 40,022 | 34,820 | 212 | ||||||||||||||||||
| Depreciation | 30,978 | 6,395 | 3,320 | 27,420 | - | 68,113 | 61,955 | 6,639 | |||||||||||||||||||
| Amortization of intangibles | 1,258 | 823 | 684 | 39,916 | - | 42,681 | 2,515 | 1,368 | |||||||||||||||||||
| Loss on disposal of assets | - | - | - | 617 | - | 617 | - | - | |||||||||||||||||||
| Base management fee paid in LLC interests | - | - | - | - | 15,475 | 15,475 | - | - | |||||||||||||||||||
| Other non-cash (income) expense | (57 | ) | 2,279 | 482 | 228 | 1,207 | 4,139 | (114 | ) | 964 | |||||||||||||||||
| EBITDA excluding non-cash items | 103,195 | 49,032 | 11,350 | 126,680 | (8,529 | ) | 281,728 | 206,390 | 22,695 | ||||||||||||||||||
| EBITDA excluding non-cash items | 103,195 | 49,032 | 11,350 | 126,680 | (8,529 | ) | 281,728 | 206,390 | 22,695 | ||||||||||||||||||
| Interest (expense) income, net(2) | (26,129 | ) | (9,138 | ) | (6,605 | ) | (36,905 | ) | 3 | (78,774 | ) | (52,257 | ) | (13,208 | ) | ||||||||||||
| Interest rate swap breakage fees(2) | - | - | - | (2,327 | ) | - | (2,327 | ) | - | - | |||||||||||||||||
| Non-cash derivative losses (gains) recorded in interest expense, net(2) | 8,328 | (225 | ) | 1,294 | (18,280 | ) | - | (8,884 | ) | 16,655 | 2,587 | ||||||||||||||||
| Amortization of deferred finance charges(2) | 1,617 | 478 | 341 | 2,927 | - | 5,362 | 3,233 | 681 | |||||||||||||||||||
| Equipment lease receivables, net | - | - | 1,553 | - | - | 1,553 | - | 3,105 | |||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | (4,085 | ) | (3,136 | ) | (434 | ) | (1,481 | ) | 1,976 | (7,160 | ) | (8,169 | ) | (868 | ) | ||||||||||||
| Changes in working capital | (18,351 | ) | (9,350 | ) | 260 | (15,307 | ) | (888 | ) | (43,635 | ) | (36,701 | ) | 520 | |||||||||||||
| Cash provided by (used in) operating activities | 64,576 | 27,661 | 7,758 | 55,307 | (7,438 | ) | 147,863 | 129,151 | 15,512 | ||||||||||||||||||
| Changes in working capital | 18,351 | 9,350 | (260 | ) | 15,307 | 888 | 43,635 | 36,701 | (520 | ) | |||||||||||||||||
| Maintenance capital expenditures | (28,629 | ) | (8,503 | ) | (330 | ) | (8,900 | ) | - | (46,361 | ) | (57,257 | ) | (659 | ) | ||||||||||||
| Free cash flow | 54,298 | 28,508 | 7,168 | 61,714 | (6,550 | ) | 145,137 | 108,595 | 14,333 | ||||||||||||||||||
| /-----------------------------------For the Year Ended December 31, 2010-------------------------------------/ | |||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | IMTT 100% | District Energy 100% | |||||||||||||||||||
| Net income (loss) attributable to MIC LLC from continuing operations | 36,032 | 11,498 | (1,411 | ) | (18,294 | ) | (12,200 | ) | 15,625 | 72,064 | (2,822 | ) | |||||||||||||||
| Interest expense, net(2) | 25,168 | 16,505 | 10,338 | 69,409 | 220 | 121,639 | 50,335 | 20,671 | |||||||||||||||||||
| Provision (benefit) for income taxes | 26,761 | 7,400 | (922 | ) | (9,497 | ) | (4,756 | ) | 18,985 | 53,521 | (1,844 | ) | |||||||||||||||
| Depreciation | 29,746 | 5,826 | 3,278 | 23,895 | - | 62,745 | 59,492 | 6,555 | |||||||||||||||||||
| Amortization of intangibles | 893 | 823 | 684 | 32,707 | - | 35,107 | 1,785 | 1,368 | |||||||||||||||||||
| Loss on disposal of assets | - | - | - | 17,869 | - | 17,869 | - | - | |||||||||||||||||||
| Base management fee paid in LLC interests | - | - | - | - | 5,403 | 5,403 | - | - | |||||||||||||||||||
| Other non-cash (income) expense | (181 | ) | 2,384 | (541 | ) | 1,388 | 63 | 3,113 | (361 | ) | (1,082 | ) | |||||||||||||||
| EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270 | ) | 280,486 | 236,836 | 22,846 | ||||||||||||||||||
| EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270 | ) | 280,486 | 236,836 | 22,846 | ||||||||||||||||||
| Interest expense, net(2) | (25,168 | ) | (16,505 | ) | (10,338 | ) | (69,409 | ) | (220 | ) | (121,639 | ) | (50,335 | ) | (20,671 | ) | |||||||||||
| Interest rate swap breakage fees(2) | - | - | - | (5,528 | ) | - | (5,528 | ) | - | - | |||||||||||||||||
| Non-cash derivative losses (gains) recorded in interest expense, net(2) | 7,827 | 7,334 | 5,069 | 11,473 | (5 | ) | 31,698 | 15,653 | 10,136 | ||||||||||||||||||
| Amortization of deferred finance charges(2) | 1,006 | 478 | 341 | 2,984 | 204 | 5,012 | 2,011 | 681 | |||||||||||||||||||
| Equipment lease receivables, net | - | - | 1,381 | - | - | 1,381 | - | 2,761 | |||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | (6,257 | ) | (4,333 | ) | - | (1,486 | ) | 2,787 | (9,289 | ) | (12,514 | ) | - | ||||||||||||||
| Changes in working capital | 2,268 | (2,079 | ) | (397 | ) | (1,476 | ) | (6,266 | ) | (7,950 | ) | 4,536 | (794 | ) | |||||||||||||
| Cash provided by (used in) operating activities | 98,094 | 29,331 | 7,481 | 54,035 | (14,770 | ) | 174,171 | 196,187 | 14,959 | ||||||||||||||||||
| Changes in working capital | (2,268 | ) | 2,079 | 397 | 1,476 | 6,266 | 7,950 | (4,536 | ) | 794 | |||||||||||||||||
| Maintenance capital expenditures | (22,498 | ) | (6,275 | ) | (604 | ) | (7,027 | ) | - | (36,403 | ) | (44,995 | ) | (1,207 | ) | ||||||||||||
| Free cash flow | 73,328 | 25,135 | 7,274 | 48,484 | (8,504 | ) | 145,717 | 146,656 | 14,546 | ||||||||||||||||||
| ___________________________ | |
(1) | Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. |
(2) | Interest expense (income), net, includes non-cash (losses) gains on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
| /------------------------------For the Quarter Ended December 31, 2011------------------------------/ | ||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | IMTT 100% | District Energy 100% | ||||||||||||||||||
| Net income (loss) attributable to MIC LLC from continuing operations | 9,829 | 6,080 | 246 | 3,364 | (6,339 | ) | 13,180 | 19,657 | 492 | |||||||||||||||||
| Interest expense, net(2) | 3,472 | 1,226 | 729 | 7,696 | - | 13,123 | 6,944 | 1,458 | ||||||||||||||||||
| Provision (benefit) for income taxes | 4,918 | 4,324 | 172 | 7,716 | (1,301 | ) | 15,829 | 9,836 | 344 | |||||||||||||||||
| Depreciation | 7,821 | 1,594 | 835 | 6,316 | - | 16,566 | 15,641 | 1,670 | ||||||||||||||||||
| Amortization of intangibles | 371 | 206 | 173 | 8,156 | - | 8,906 | 742 | 345 | ||||||||||||||||||
| Gain on disposal of assets | - | - | - | (332 | ) | - | (332 | ) | - | - | ||||||||||||||||
| Base management fee paid in LLC interests | - | - | - | - | 4,222 | 4,222 | - | - | ||||||||||||||||||
| Other non-cash expense (income) | 21 | 361 | 157 | (82 | ) | 113 | 570 | 42 | 313 | |||||||||||||||||
| EBITDA excluding non-cash items | 26,431 | 13,791 | 2,311 | 32,834 | (3,305 | ) | 72,062 | 52,862 | 4,622 | |||||||||||||||||
| EBITDA excluding non-cash items | 26,431 | 13,791 | 2,311 | 32,834 | (3,305 | ) | 72,062 | 52,862 | 4,622 | |||||||||||||||||
| Interest expense, net(2) | (3,472 | ) | (1,226 | ) | (729 | ) | (7,696 | ) | 1 | (13,122 | ) | (6,944 | ) | (1,458 | ) | |||||||||||
| Interest rate swap breakage fees(2) | - | - | - | (80 | ) | - | (80 | ) | - | - | ||||||||||||||||
| Non-cash derivative gains recorded in interest expense, net(2) | (999 | ) | (1,157 | ) | (611 | ) | (6,214 | ) | - | (8,981 | ) | (1,998 | ) | (1,221 | ) | |||||||||||
| Amortization of deferred finance charges(2) | 404 | 120 | 85 | 722 | - | 1,331 | 807 | 170 | ||||||||||||||||||
| Equipment lease receivables, net | - | - | 417 | - | - | 417 | - | 834 | ||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | 2,798 | 971 | 112 | (539 | ) | (1,210 | ) | 2,132 | 5,596 | 224 | ||||||||||||||||
| Changes in working capital | (3,117 | ) | (1,871 | ) | 564 | (7,825 | ) | 2,262 | (9,986 | ) | (6,233 | ) | 1,128 | |||||||||||||
| Cash provided by (used in) operating activities | 22,045 | 10,628 | 2,150 | 11,202 | (2,252 | ) | 43,773 | 44,090 | 4,299 | |||||||||||||||||
| Changes in working capital | 3,117 | 1,871 | (564 | ) | 7,825 | (2,262 | ) | 9,986 | 6,233 | (1,128 | ) | |||||||||||||||
| Maintenance capital expenditures | (10,600 | ) | (2,215 | ) | (185 | ) | (3,206 | ) | - | (16,206 | ) | (21,199 | ) | (370 | ) | |||||||||||
| Free cash flow | 14,562 | 10,284 | 1,401 | 15,821 | (4,514 | ) | 37,554 | 29,124 | 2,801 | |||||||||||||||||
| ||||||||||||||||||||||||||
| /--------------------------------For the Quarter Ended December 31, 2010--------------------------------/ | ||||||||||||||||||||||||||
| ($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | IMTT 100% | District Energy 100% | ||||||||||||||||||
| Net income (loss) attributable to MIC LLC from continuing operations | 13,313 | 5,641 | 1,240 | (8,708 | ) | (7,423 | ) | 4,062 | 26,625 | 2,479 | ||||||||||||||||
| Interest (income) expense, net(2) | (4,075 | ) | 725 | (97 | ) | 7,797 | (5 | ) | 4,345 | (8,150 | ) | (195 | ) | |||||||||||||
| Provision (benefit) for income taxes | 8,810 | 3,631 | 810 | (3,026 | ) | 1,619 | 11,844 | 17,619 | 1,620 | |||||||||||||||||
| Depreciation | 7,335 | 1,517 | 823 | 6,307 | - | 15,981 | 14,669 | 1,645 | ||||||||||||||||||
| Amortization of intangibles | 236 | 206 | 172 | 8,193 | - | 8,807 | 472 | 345 | ||||||||||||||||||
| Loss on disposal of assets | - | - | - | 17,869 | - | 17,869 | - | - | ||||||||||||||||||
| Base management fee paid in LLC interests | - | - | - | - | 3,214 | 3,214 | - | - | ||||||||||||||||||
| Other non-cash (income) expense | (44 | ) | 785 | (867 | ) | 634 | 1,396 | 1,904 | (88 | ) | (1,734 | ) | ||||||||||||||
| EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199 | ) | 68,026 | 51,147 | 4,160 | |||||||||||||||||
| EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199 | ) | 68,026 | 51,147 | 4,160 | |||||||||||||||||
| Interest income (expense), net(2) | 4,075 | (725 | ) | 97 | (7,797 | ) | 5 | (4,345 | ) | 8,150 | 195 | |||||||||||||||
| Interest rate swap breakage fees(2) | - | - | - | (839 | ) | - | (839 | ) | - | - | ||||||||||||||||
| Non-cash derivative gains recorded in interest expense, net(2) | (8,721 | ) | (1,611 | ) | (1,435 | ) | (6,764 | ) | (3 | ) | (18,534 | ) | (17,441 | ) | (2,870 | ) | ||||||||||
| Amortization of deferred finance charges(2) | 342 | 119 | 85 | 759 | - | 1,305 | 683 | 170 | ||||||||||||||||||
| Equipment lease receivables, net | - | - | 280 | - | - | 280 | - | 559 | ||||||||||||||||||
| Provision/benefit for income taxes, net of changes in deferred taxes | (851 | ) | (3,057 | ) | - | (1,188 | ) | 2,357 | (2,739 | ) | (1,702 | ) | - | |||||||||||||
| Changes in working capital | 12,115 | (759 | ) | 1,434 | (1,612 | ) | (5,765 | ) | 5,412 | 24,229 | 2,867 | |||||||||||||||
| Cash provided by (used in) operating activities | 32,533 | 6,472 | 2,541 | 11,625 | (4,605 | ) | 48,566 | 65,066 | 5,081 | |||||||||||||||||
| Changes in working capital | (12,115 | ) | 759 | (1,434 | ) | 1,612 | 5,765 | (5,412 | ) | (24,229 | ) | (2,867 | ) | |||||||||||||
| Maintenance capital expenditures | (7,913 | ) | (4,267 | ) | (197 | ) | (3,046 | ) | - | (15,423 | ) | (15,826 | ) | (394 | ) | |||||||||||
| Free cash flow | 12,506 | 2,964 | 910 | 10,191 | 1,160 | 27,731 | 25,011 | 1,820 | ||||||||||||||||||
| ___________________________ | |
| (1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. | |
| (2) Interest (expense) income, net, includes non-cash gains on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. | |
CONTACT:
Investor enquiries
Macquarie Infrastructure Company
Jay A. Davis, 212-231-1825
Investor Relations
or
Media enquiries
Macquarie Infrastructure Company
Paula Chirhart, 212-231-1310
Corporate Communications