Exhibit 99.1
Macquarie Infrastructure Company LLC Reports First Quarter 2012 Financial Results, Strong Performance from Operating Entities
• $0.20 per share cash dividend for first quarter to be paid mid-May
• Quarterly dividend projected to increase to $0.50 per share or more with IMTT payments
• Proportionately combined free cash flow per share increases 9%
NEW YORK--(BUSINESS WIRE)--May 2, 2012--Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for the first quarter of 2012 including proportionately combined free cash flow of $0.88 per share compared with $0.81 per share in the first quarter of 2011. The 9% increase reflects improved performance at each of MIC’s four operating entities.
The Company also reported that its Board of Directors approved the distribution of a cash dividend of $0.20 per share for the first quarter. The cash dividend will be payable on May 17, 2012 to shareholders of record on May 14, 2012.
Proportionately combined free cash flow increased to $40.7 million in the first quarter of 2012 from $37.0 million in the first quarter of 2011. The aggregate increase reflects growth in free cash flow generated of:
- 66.0% at District Energy, the Company’s 50.01% interest in a district cooling business in Chicago;
- 57.9% at The Gas Company, MIC’s gas processing and distribution business in Hawaii;
- 16.4% at Atlantic Aviation, the Company’s airport services business based in Plano, Texas; and,
- 11.0% at International-Matex Tank Terminals (IMTT), MIC’s 50% equity investment in a bulk liquid storage terminal business headquartered in New Orleans, Louisiana.
MIC regards free cash flow as an important tool in assessing the performance of its capital intensive, cash generative businesses. The Company 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. Proportionately combined free cash flow refers to the sum of the free cash flow generated by MIC’s businesses and investments in proportion to its equity interest in each and after holding company costs. See “Cash Generation” below for further information.
“The first quarter was good for each of our operating entities,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company. “While we incurred significant legal expenses in the first quarter related to the IMTT arbitration, our continued active management helped our businesses perform well and at levels consistent with our guidance for the full year.”
Excluding the effect of the expenses incurred in connection with the arbitration, MIC’s proportionately combined free cash flow per share would have increased by 17.3% to $0.95 in the first quarter of 2012 from $0.81 in the first quarter of 2011.
Dividend Policy
In determining the MIC dividend for the first quarter of 2012, MIC’s Board was not able to consider either the arbitration award or the dividend it believes IMTT should pay to each of its shareholders for the first quarter. Neither the payment due in settlement of the arbitration nor the cash flows generated by IMTT in the first quarter were distributed to MIC. MIC believes that the receipt of these funds and those that may become due in the future will result in its Board authorizing an increase in the amount of the Company’s quarterly cash dividend.
Reflecting confidence in the Company’s ability to secure the proceeds awarded in the arbitration, the MIC Board has expressed its intent to raise the MIC dividend to at least $0.50 per share, per quarter, following receipt of the award proceeds. The precise timing and amount of any future dividend, including an increase resulting from the receipt of the arbitration award proceeds, will be based on the continued stable performance of the Company’s businesses and the economic conditions prevailing at the time of any authorization. Future dividends will also be dependent on compliance by MIC’s co-investor with the dividend provisions of the IMTT Shareholders’ Agreement.
The MIC Board’s intent also reflects its past practice of paying substantially all of the cash generated by the Company’s operating businesses to shareholders in the form of a quarterly cash dividend.
Arbitration Update
MIC reported on April 1, 2012 that it had been awarded $110.6 million at the conclusion of its arbitration with its co-investor in IMTT. The award represents the amount of dividends to which MIC was entitled through December 31, 2011 under the Shareholders’ Agreement with its co-investor. The arbitration award also dismissed all of the co-investor’s counterclaims, provided clarification as to the methodology used to calculate future dividends and directed the parties to comply with certain corporate governance recommendations.
On April 1, 2012 MIC filed a complaint in Delaware state court seeking confirmation of the award. MIC’s co-investor has not challenged the confirmation proceedings, but has until May 24, 2012 to answer the complaint and until the end of June to move to vacate the award. If the award is confirmed in Delaware state court, MIC will then be able to seek enforcement of the judgment through separate court proceedings. Those proceedings could take six months or longer to complete.
MIC continues to work with its co-investor on the implementation of the award and payment of all dividends due under that decision. Consistent with the performance of the business in the first quarter and the interpretation of the Shareholders’ Agreement ordered in the arbitration, MIC proposed a dividend for the first quarter of 2012 of $22.6 million per shareholder.
“We are pleased to have concluded the arbitration with our co-investor in IMTT, although we’re disappointed not to have received the award proceeds or a dividend for the first quarter as yet,” Hooke noted. ”Our co-investor’s representatives have said that they plan to comply with the terms of the award. They have proposed a dividend for the first quarter that, while less than the award requires, does represent a step forward by them. We remain hopeful that our co-investor will comply with the award of past and payment of current dividends soon.”
Consolidated Results for First Quarter
MIC’s consolidated revenue for the first quarter of 2012 increased 10.4% compared with the first quarter of 2011 to $264.9 million. The growth in revenue reflects both higher energy costs, such as the cost of jet fuel and synthetic natural gas that are passed through to customers of MIC’s businesses, and an increase in the volume of product sold.
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 $100.6 million in the first quarter of 2012, an increase of 5.4% over the same period in 2011.
MIC reported $20.7 million of net income, before taxes, in the first quarter of 2012 compared with net income of $17.8 million in the first quarter of 2011.
Cash Generation
MIC reports EBITDA excluding non-cash items on a consolidated and operating segment basis and reconciles each to consolidated net income. 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 Quarter Ended March 31, 2012 |
| ($ in Thousands) (Unaudited) | | IMTT 50% | | The Gas Company | | District Energy 50.01% | | Atlantic Aviation | | MIC Corporate | | Proportionately Combined(1) | | | IMTT 100% | | District Energy 100% | |
| | | | | | | | | | | | | | | | | | |
| Gross profit | | 33,188 | | 18,699 | | 1,846 | | 78,252 | | N/A | | 131,985 | | | 66,376 | | 3,691 | |
| EBITDA excluding non-cash items | | 29,731 | | 14,180 | | 2,175 | | 34,151 | | (5,046 | ) | 75,191 | | | 59,462 | | 4,349 | |
| Free cash flow | | 15,744 | | 8,010 | | 1,343 | | 19,109 | | (3,469 | ) | 40,736 | | | 31,487 | | 2,685 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | For the Quarter Ended March 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% | |
| | | | | | | | | | | | | | | | | | |
| Gross profit | | 30,026 | | 15,488 | | 1,417 | | 77,207 | | N/A | | 124,137 | | | 60,051 | | 2,833 | |
| EBITDA excluding non-cash items | | 26,492 | | 11,789 | | 1,719 | | 32,075 | | (1,394 | ) | 70,681 | | | 52,984 | | 3,438 | |
| Free cash flow | | 14,189 | | 5,073 | | 809 | | 16,419 | | 500 | | 36,990 | | | 28,378 | | 1,617 | |
| | | | | | | | | | | | | | | | | | |
| Gross profit variance | | 10.5 | % | 20.7 | % | 30.3 | % | 1.4 | % | NA | | 6.3 | % | | 10.5 | % | 30.3 | % |
| EBITDA excluding non-cash items variance | | 12.2 | % | 20.3 | % | 26.5 | % | 6.5 | % | NM | | 6.4 | % | | 12.2 | % | 26.5 | % |
| Free cash flow variance | | 11.0 | % | 57.9 | % | 66.0 | % | 16.4 | % | NM | | 10.1 | % | | 11.0 | % | 66.0 | % |
| _____________________ | | | | | | | | | | | | | | | | | | |
| 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. |
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.
Terminal revenue at IMTT grew 5.3% during the first quarter compared with the first quarter of 2011 primarily as a result of the improvement in average storage rental rates. Average storage rental rates increased 5.6% in 2012. With a small number of expected 2012 contract renewals having been completed, MIC now expects average storage rates to increase in a range between 5.5% and 7.5% for the full year.
Capacity utilization increased to 95.9% from 93.8% during the first quarter of 2012 compared with the first quarter of 2011. Utilization rates improved as tanks that had been out of service for cleaning and inspection were returned to service in the first quarter. MIC expects utilization rates for the full year to be comparable with those achieved in 2011.
Environmental response gross profit generated in the quarter of 2012 increased to $1.2 million from less than $100,000 in the first quarter of 2011. There was a modest increase in the amount of spill response activity in which IMTT’s environmental response subsidiary was involved in 2012.
IMTT’s quarterly free cash flow increased to $31.5 million in the first quarter of 2012 from $28.4 million in 2011 due to the improvement in operating results.
The Gas Company
The Gas Company is the owner and operator of the only regulated (“utility”) gas processing and pipeline distribution network in the Hawaiian Islands. The business is also the owner and operator of the largest unregulated (“non-utility”) propane gas distribution business on the islands.
Non-utility contribution margin increased 42.2% during the first quarter of 2012 compared with the first quarter in 2011. The increase reflects both a 6.7% increase in the volume of gas sold and effective margin management during a period in which wholesale propane prices fluctuated by more than 10%. Utility contribution margin decreased slightly versus the prior comparable period.
The Gas Company generated $8.0 million of free cash flow in the first quarter of 2012. Free cash flow increased by $2.9 million compared with the first quarter of 2011 primarily as a result of the improved operating results of the non-utility portion of the business and a decrease in maintenance capital expenditures.
District Energy
MIC’s District Energy business produces chilled water that it distributes via underground pipelines in downtown Chicago to high-rise buildings for use in air conditioning and process cooling systems. The business also operates a site-specific operation that supplies both cooling and heating services to three customers in Las Vegas, Nevada. MIC has a 50.01% (controlling) interest in District Energy.
Gross profit increased 30.3% at District Energy in the first quarter of 2012 compared with the first quarter of 2011. The increase was primarily due to improved performance related to the warmer than average temperatures in Chicago this year versus the first quarter of 2011 that drove increased demand for cooling. The business also recorded lower expenditures for preseason system maintenance. A higher percentage of total preseason maintenance was conducted in the first quarter of 2011 compared with 2012.
Free cash flow increased 66.0% to $2.7 million in the first quarter of 2012 compared with the first quarter of 2011 primarily due to the improved operating performance.
Atlantic Aviation
Atlantic Aviation owns and operates a network of fixed-base operations (FBO) that primarily provide fuel, terminal services and aircraft hangar services to owners and operators of general aviation (GA) aircraft at 65 airports in the US. The network is the largest of its type in the U.S. air transportation industry.
Gross profit for the first quarter of 2012 increased 1.4% compared with the first quarter of 2011 primarily as a result of an increase in the volume of GA jet fuel sold and the margin achieved on those sales. The same store volume of GA jet fuel sold increased 1.4% while margins were up 3.3%.
Same store gross profit increased 2.1% in the first quarter including a sharp drop in revenue and gross profit generated from de-icing activity in the first quarter of 2012 compared with the first quarter of 2011. Excluding the impact of de-icing in both periods, same store gross profit would have increased by 3.9%.
Selling, general and administrative (SG&A) were lower in the first quarter of 2012 compared with the first quarter of 2011 as a result of lower lease costs reflecting sales of several FBOs last year. Property and casualty insurance expenses declined as well, helped by Atlantic Aviation’s track record of safety and effective insurance procurement practices.
Free cash flow generated by Atlantic Aviation during the first quarter of 2012 increased 16.4% to $19.1 million from $16.4 million in the first quarter of 2011.
Business Outlook
Management at MIC has provided the following update to previously provided guidance regarding the performance of the Company’s operating businesses in 2012.
IMTT – MIC continues to expect the business will generate between $220.0 and $235.0 million of EBITDA excluding non-cash items during 2012. Maintenance capital expenditures were seasonally normal during the first quarter and are expected to be approximately $50.0 to $55.0 million for the full year. If growth capital assets are placed in service as planned during the year, IMTT is likely to have little or no current federal income tax liability as a result of depreciation (non-cash) expenses associated with these expenditures.
The Gas Company – the business is expected to generate between $50.0 and $55.0 million of EBITDA excluding non-cash items in 2012. Maintenance capital expenditures are anticipated be approximately $6.7 million for the full year or down by about one third on 2011. Strong performance in the first quarter, particularly from the non-utility portion of the business suggests that The Gas Company is likely to finish 2012 at the higher end of the range of EBITDA guidance.
District Energy – the business is expected to generate between $21.0 and $22.0 million of EBITDA excluding non-cash items. Maintenance capital expenditures are expected to be approximately $1.0 million for the full year. The relatively strong performance of the business in the first quarter suggests a full-year result at the higher end of guidance assuming peak cooling season temperatures are consistent with historical norms.
Atlantic Aviation – the business is expected to generate between $130.0 and $140.0 million of EBITDA excluding non-cash items during 2012. Maintenance capital expenditures are expected to be approximately $13.1 million for the full year. The level of performance improvement in the first quarter was consistent with a full-year result in the range of current guidance.
MIC management believes that 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 for 2012.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, May 3, 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 May 3, 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 May 3, 2012 through May 17, 2012, at +1(404) 537-3406, Passcode: 70894356. 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, a controlling interest in a District Energy business in Chicago, and a 50% 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 filing 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 report are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, 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 CONDENSED BALANCE SHEETS |
| ($ In Thousands, Except Share Data) |
| | | | | |
| March 31, 2012 | | December 31, 2011 |
| ASSETS | | (Unaudited) | | | |
| Current assets: | | | | | |
| Cash and cash equivalents | $ | 32,390 | | | $ | 22,786 | |
| Accounts receivable, less allowance for doubtful accounts | | | | | |
| of $549 and $445, respectively | | 64,486 | | | | 56,458 | |
| Distributions receivable from unconsolidated business | | 110,579 | | | | - | |
| Inventories | | 23,318 | | | | 23,106 | |
| Prepaid expenses | | 7,279 | | | | 7,338 | |
| Deferred income taxes | | 15,162 | | | | 19,102 | |
| Other | | 16,151 | | | | 14,523 | |
| Total current assets | | 269,365 | | | | 143,313 | |
| Property, equipment, land and leasehold improvements, net | | 558,090 | | | | 561,022 | |
| Equipment lease receivables | | 31,240 | | | | 32,189 | |
| Investment in unconsolidated business | | 129,567 | | | | 230,401 | |
| Goodwill | | 516,175 | | | | 516,175 | |
| Intangible assets, net | | 653,589 | | | | 662,135 | |
| Other | | 22,546 | | | | 23,398 | |
| Total assets | $ | 2,180,572 | | | $ | 2,168,633 | |
| | | | | |
| LIABILITIES AND MEMBERS' EQUITY | | | | | |
| Current liabilities: | | | | | |
| Due to manager - related party | $ | 5,084 | | | $ | 4,300 | |
| Accounts payable | | 33,608 | | | | 29,199 | |
| Accrued expenses | | 22,741 | | | | 23,827 | |
| Current portion of long-term debt | | 54,115 | | | | 34,535 | |
| Fair value of derivative instruments | | 32,084 | | | | 39,339 | |
| Other | | 17,632 | | | | 17,702 | |
| Total current liabilities | | 165,264 | | | | 148,902 | |
| Long-term debt, net of current portion | | 1,069,891 | | | | 1,086,053 | |
| Deferred income taxes | | 180,922 | | | | 177,262 | |
| Fair value of derivative instruments | | 12,832 | | | | 15,576 | |
| Other | | 47,384 | | | | 46,980 | |
| Total liabilities | | 1,476,293 | | | | 1,474,773 | |
| Commitments and contingencies | | - | | | | - | |
| Members’ equity: | | | | | |
| LLC interests, no par value; 500,000,000 authorized; 46,474,212 LLC | | | | | |
| interests issued and outstanding at March 31, 2012 and 46,338,225 LLC | | | | | |
| interests issued and outstanding at December 31, 2011 | | 946,683 | | | | 951,729 | |
| Additional paid in capital | | 21,447 | | | | 21,447 | |
| Accumulated other comprehensive loss | | (24,845 | ) | | | (27,412 | ) |
| Accumulated deficit | | (227,990 | ) | | | (242,082 | ) |
| Total members’ equity | | 715,295 | | | | 703,682 | |
| Noncontrolling interests | | (11,016 | ) | | | (9,822 | ) |
| Total equity | | 704,279 | | | | 693,860 | |
| Total liabilities and equity | $ | 2,180,572 | | | $ | 2,168,633 | |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
| |
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| ($ In Thousands, Except Share and Per Share Data) |
| | |
| | Quarter Ended March 31, 2012 | | Quarter Ended March 31, 2011 |
| | | | | | | |
| Revenue | | | | | | | |
| Revenue from product sales | | $ | 172,954 | | | $ | 153,064 | |
| Revenue from product sales - utility | | | 38,314 | | | | 34,273 | |
| Service revenue | | | 52,409 | | | | 51,247 | |
| Financing and equipment lease income | | | 1,179 | | | | 1,287 | |
| Total revenue | | | 264,856 | | | | 239,871 | |
| Costs and expenses | | | | | | | |
| Cost of product sales | | | 119,381 | | | | 105,325 | |
| Cost of product sales - utility | | | 32,172 | | | | 26,865 | |
| Cost of services | | | 12,661 | | | | 12,154 | |
| Selling, general and administrative | | | 55,263 | | | | 51,670 | |
| Fees to manager - related party | | | 4,995 | | | | 3,632 | |
| Depreciation | | | 7,551 | | | | 7,210 | |
| Amortization of intangibles | | | 8,546 | | | | 8,719 | |
| Total operating expenses | | | 240,569 | | | | 215,575 | |
| Operating income | | | 24,287 | | | | 24,296 | |
| Other income (expense) | | | | | | | |
| Interest income | | | 2 | | | | 4 | |
| Interest expense(1) | | | (13,007 | ) | | | (14,469 | ) |
| Equity in earnings and amortization charges of investee | | | 9,501 | | | | 8,362 | |
| Other expense, net | | | (52 | ) | | | (349 | ) |
| Net income before income taxes | | | 20,731 | | | | 17,844 | |
| Provision for income taxes | | | (6,521 | ) | | | (6,986 | ) |
| Net income | | $ | 14,210 | | | $ | 10,858 | |
| Less: net income (loss) attributable to noncontrolling interests | | | 118 | | | | (307 | ) |
| Net income attributable to MIC LLC | | $ | 14,092 | | | $ | 11,165 | |
| | | | | | | |
| Basic income per share attributable to MIC LLC interest holders | | $ | 0.30 | | | $ | 0.24 | |
| | | | | | | |
| Weighted average number of shares outstanding: basic | | | 46,356,157 | | | | 45,730,568 | |
| | | | | | | |
| Diluted income per share attributable to MIC LLC interest holders | | $ | 0.30 | | | $ | 0.24 | |
| | | | | | | |
| Weighted average number of shares outstanding: diluted | | | 46,379,291 | | | | 45,762,557 | |
| Cash dividends declared per share | | $ | 0.20 | | | $ | 0.20 | |
_________________
(1) Interest expense includes non-cash gains on derivative instruments of $5.6 million and $5.5 million for the quarters ended March 31, 2012 and 2011, respectively.
| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| |
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| ($ In Thousands) |
| | | Quarter Ended
March 31, 2012 | | | Quarter Ended
March 31, 2011 |
| | | | | | |
| | | | | | |
| Operating activities | | | | | | |
| Net income | | $ | 14,210 | | $ | 10,858 |
| Adjustments to reconcile net income to net cash provided by operating | | | | | |
| activities: | | | | | | |
| Depreciation and amortization of property and equipment | | 9,225 | | | 8,857 |
| Amortization of intangible assets | | 8,546 | | | 8,719 |
| Equity in earnings and amortization charges of investee | | (9,501) | | | (8,362) |
| Amortization of debt financing costs | | 978 | | | 1,030 |
| Non-cash derivative gains | | | (5,630) | | | (5,510) |
| Base management fees settled in LLC interests | | 4,995 | | | 3,632 |
| Equipment lease receivable, net | | 838 | | | 740 |
| Deferred rent | | | 74 | | | 90 |
| Deferred taxes | | | 5,768 | | | 6,054 |
| Other non-cash expenses, net | | 559 | | | 663 |
| Changes in other assets and liabilities: | | | | | |
| Accounts receivable | | | (8,227) | | | (6,746) |
| Inventories | | | 1,510 | | | (845) |
| Prepaid expenses and other current assets | | (1,695) | | | (2,320) |
| Due to manager - related party | | 11 | | | (13) |
| Accounts payable and accrued expenses | | 3,080 | | | 4,479 |
| Income taxes payable | | | (113) | | | 594 |
| Other, net | | | (898) | | | (378) |
| Net cash provided by operating activities | | 23,730 | | | 21,542 |
| | | | | | |
| Investing activities | | | | | | |
| Purchases of property and equipment | | (7,069) | | | (7,162) |
| Proceeds from sale of investment | | 390 | | | - |
| Other | | | 26 | | | (14) |
| Net cash used in investing activities | | (6,653) | | | (7,176) |
| | | | | | |
| Financing activities | | | | | | |
| Proceeds from long-term debt | | 10,000 | | | 970 |
| Proceeds from line of credit facilities | | - | | | 2,000 |
| Dividends paid to holders of LLC interests | | (9,268) | | | - |
| Distributions paid to noncontrolling interests | | (1,525) | | | (2,495) |
| Payment of long-term debt | | | (6,583) | | | (14,500) |
| Payment of notes and capital lease obligations | | (97) | | | (40) |
| Net cash used in financing activities | | (7,473) | | | (14,065) |
| | | | | | |
| Net change in cash and cash equivalents | | 9,604 | | | 301 |
| Cash and cash equivalents, beginning of period | | 22,786 | | | 24,563 |
| Cash and cash equivalents, end of period | $ | 32,390 | | $ | 24,864 |
| | | | | | |
| Supplemental disclosures of cash flow information | | | | | |
| Non-cash investing and financing activities: | | | | | |
| Accrued purchases of property and equipment | $ | 1,022 | | $ | 1,789 |
| Acquisition of equipment through capital leases | $ | 916 | | $ | - |
| Issuance of LLC interests to manager for base management fees | $ | 4,222 | | $ | 3,214 |
| Taxes paid | | $ | 865 | | $ | 309 |
| Interest paid | | $ | 17,530 | | $ | 18,959 |
| | CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS - MDA |
| |
| | | Quarter Ended March 31, | | | Change Favorable/(Unfavorable) |
| | | 2012 | | | | 2011 | | | | $ | | | % | |
| | | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | |
| Revenue from product sales | $ | 172,954 | | | $ | 153,064 | | | | 19,890 | | | 13.0 | |
| Revenue from product sales - utility | | 38,314 | | | | 34,273 | | | | 4,041 | | | 11.8 | |
| Service revenue | | 52,409 | | | | 51,247 | | | | 1,162 | | | 2.3 | |
| Financing and equipment lease income | | 1,179 | | | | 1,287 | | | | (108 | ) | | (8.4 | ) |
| Total revenue | | 264,856 | | | | 239,871 | | | | 24,985 | | | 10.4 | |
| Costs and expenses | | | | | | | | | | |
| Cost of product sales | | 119,381 | | | | 105,325 | | | | (14,056 | ) | | (13.3 | ) |
| Cost of product sales - utility | | 32,172 | | | | 26,865 | | | | (5,307 | ) | | (19.8 | ) |
| Cost of services | | 12,661 | | | | 12,154 | | | | (507 | ) | | (4.2 | ) |
| Gross profit | | 100,642 | | | | 95,527 | | | | 5,115 | | | 5.4 | |
| Selling, general and administrative | | 55,263 | | | | 51,670 | | | | (3,593 | ) | | (7.0 | ) |
| Fees to manager - related party | | 4,995 | | | | 3,632 | | | | (1,363 | ) | | (37.5 | ) |
| Depreciation | | 7,551 | | | | 7,210 | | | | (341 | ) | | (4.7 | ) |
| Amortization of intangibles | | 8,546 | | | | 8,719 | | | | 173 | | | 2.0 | |
| Total operating expenses | | 76,355 | | | | 71,231 | | | | (5,124 | ) | | (7.2 | ) |
| Operating income | | 24,287 | | | | 24,296 | | | | (9 | ) | | - | |
| Other income (expense) | | | | | | | | | | |
| Interest income | | 2 | | | | 4 | | | | (2 | ) | | (50.0 | ) |
| Interest expense(1) | | (13,007 | ) | | | (14,469 | ) | | | 1,462 | | | 10.1 | |
| Equity in earnings and amortization charges of investee | | 9,501 | | | | 8,362 | | | | 1,139 | | | 13.6 | |
| Other expense, net | | (52 | ) | | | (349 | ) | | | 297 | | | 85.1 | |
| Net income before income taxes | | 20,731 | | | | 17,844 | | | | 2,887 | | | 16.2 | |
| Provision for income taxes | | (6,521 | ) | | | (6,986 | ) | | | 465 | | | 6.7 | |
| Net income | $ | 14,210 | | | $ | 10,858 | | | | 3,352 | | | 30.9 | |
| Less: net income (loss) attributable to noncontrolling interests | | 118 | | | | (307 | ) | | | (425 | ) | | (138.4 | ) |
| Net income attributable to MIC LLC | $ | 14,092 | | | $ | 11,165 | | | | 2,927 | | | 26.2 | |
| | | | | | | | | | | |
| (1) Interest expense includes non-cash gains on derivative instruments of $5.6 million and $5.5 million for the |
| quarters ended March 31, 2012 and 2011, respectively. |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
RECONCILIATION OF CONSOLIDATED NET INCOME |
TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM |
| OPERATING ACTIVITIES TO FREE CASH FLOW |
| | | | | | | | | | | | | |
| | | | Quarter Ended March 31, | | | Change Favorable/(Unfavorable) |
| | | | 2012 | | | | 2011 | | | | $ | | % |
| | | | ($ In Thousands) (Unaudited) |
| Net income attributable to MIC LLC(1) | $ | 14,092 | | | $ | 11,165 | | | | | | |
| Interest expense, net(2) | | | 13,005 | | | | 14,465 | | | | | | |
| Provision for income taxes | | | 6,521 | | | | 6,986 | | | | | | |
| Depreciation(3) | | | 7,551 | | | | 7,210 | | | | | | |
| Depreciation - cost of services(3) | | 1,674 | | | | 1,647 | | | | | | |
| Amortization of intangibles(4) | | | 8,546 | | | | 8,719 | | | | | | |
| Equity in earnings and amortization charges of investee(5) | | (9,501 | ) | | | (8,362 | ) | | | | | |
| Base management fees settled/to be settled in LLC interests | | 4,995 | | | | 3,632 | | | | | | |
| Other non-cash expense, net | | | 751 | | | | 446 | | | | | | |
| EBITDA excluding non-cash items | $ | 47,634 | | | $ | 45,908 | | | | 1,726 | | 3.8 |
| | | | | | | | | | | | |
| EBITDA excluding non-cash items | $ | 47,634 | | | $ | 45,908 | | | | | | |
| Interest expense, net(2) | | | (13,005 | ) | | | (14,465 | ) | | | | | |
| Interest rate swap breakage fees(2) | | (248 | ) | | | (1,105 | ) | | | | | |
| Non-cash derivative gains recorded in interest expense(2) | | (5,382 | ) | | | (4,405 | ) | | | | | |
| Amortization of debt financing costs(2) | | 978 | | | | 1,030 | | | | | | |
| Equipment lease receivables, net | | 838 | | | | 740 | | | | | | |
| Provision for income taxes, net of changes in deferred taxes | | (753 | ) | | | (932 | ) | | | | | |
| Changes in working capital | | | (6,332 | ) | | | (5,229 | ) | | | | | |
| Cash provided by operating activities | | 23,730 | | | | 21,542 | | | | | | |
| Changes in working capital | | | 6,332 | | | | 5,229 | | | | | | |
| Maintenance capital expenditures | | (3,727 | ) | | | (3,162 | ) | | | | | |
| Free cash flow | | $ | 26,335 | | | $ | 23,609 | | | | 2,726 | | 11.5 |
______________________________
(1) Net income attributable to MIC LLC excludes net income attributable to noncontrolling interests of $118,000 and net loss attributable to noncontrolling interests of $307,000 for the quarters ended March 31, 2012 and 2011, respectively.
(2) Interest expense, net, includes non-cash gains 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 condensed statements of operations. Depreciation and Depreciation - cost of services does not include acquisition-related step-up depreciation expense of $2.0 million and $1.7 million for the quarters ended March 31, 2012 and 2011, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investee in our consolidated condensed statements of operations.
(4) Amortization of intangibles does not include acquisition-related step-up amortization expense of $85,000 and $283,000 for the quarters ended March 31, 2012 and 2011, respectively, related to intangible assets in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investee in our consolidated condensed statements of operations.
(5) Equity in earnings and amortization charges of investee 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 March 31, |
| | | 2012 | | | 2011 | | | Change Favorable/(Unfavorable) |
| | | $ | | | $ | | | $ | | | % | |
| | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | |
| Terminal revenue | | 111,617 | | | 106,015 | | | 5,602 | | | 5.3 | |
| Environmental response revenue | | 6,387 | | | 4,816 | | | 1,571 | | | 32.6 | |
| Total revenue | | 118,004 | | | 110,831 | | | 7,173 | | | 6.5 | |
| Costs and expenses | | | | | | | | |
| Terminal operating costs | | 46,472 | | | 46,049 | | | (423 | ) | | (0.9 | ) |
| Environmental response operating costs | | 5,156 | | | 4,731 | | | (425 | ) | | (9.0 | ) |
| Total operating costs | | 51,628 | | | 50,780 | | | (848 | ) | | (1.7 | ) |
| Terminal gross profit | | 65,145 | | | 59,966 | | | 5,179 | | | 8.6 | |
| Environmental response gross profit | | 1,231 | | | 85 | | | 1,146 | | | NM | |
| Gross profit | | 66,376 | | | 60,051 | | | 6,325 | | | 10.5 | |
| General and administrative expenses | | 7,459 | | | 7,863 | | | 404 | | | 5.1 | |
| Depreciation and amortization | | 16,907 | | | 15,675 | | | (1,232 | ) | | (7.9 | ) |
| Operating income | | 42,010 | | | 36,513 | | | 5,497 | | | 15.1 | |
| Interest expense, net(1) | | (6,591 | ) | | (4,683 | ) | | (1,908 | ) | | (40.7 | ) |
| Other income | | 456 | | | 779 | | | (323 | ) | | (41.5 | ) |
| Provision for income taxes | | (14,367 | ) | | (13,544 | ) | | (823 | ) | | (6.1 | ) |
| Noncontrolling interest | | (99 | ) | | 25 | | | (124 | ) | | NM | |
| Net income | | 21,409 | | | 19,090 | | | 2,319 | | | 12.1 | |
| | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | |
| Net income | | 21,409 | | | 19,090 | | | | | |
| Interest expense, net(1) | | 6,591 | | | 4,683 | | | | | |
| Provision for income taxes | | 14,367 | | | 13,544 | | | | | |
| Depreciation and amortization | | 16,907 | | | 15,675 | | | | | |
| Other non-cash expenses (income) | | 188 | | | (8 | ) | | | | |
| EBITDA excluding non-cash items | | 59,462 | | | 52,984 | | | 6,478 | | | 12.2 | |
| | | | | | | | | |
| EBITDA excluding non-cash items | | 59,462 | | | 52,984 | | | | | |
| Interest expense, net(1) | | (6,591 | ) | | (4,683 | ) | | | | |
| Non-cash derivative gains recorded in interest expense(1) | | (2,679 | ) | | (4,332 | ) | | | | |
| Amortization of debt financing costs(1) | | 805 | | | 811 | | | | | |
| Provision for income taxes, net of changes in deferred taxes | | (11,392 | ) | | (7,888 | ) | | | | |
| Changes in working capital | | 14,173 | | | 1,632 | | | | | |
| Cash provided by operating activities | | 53,778 | | | 38,524 | | | | | |
| Changes in working capital | | (14,173 | ) | | (1,632 | ) | | | | |
| Maintenance capital expenditures | | (8,118 | ) | | (8,514 | ) | | | | |
| Free cash flow | | 31,487 | | | 28,378 | | | 3,109 | | | 11.0 | |
| _____________________ | | | | | | | | |
| NM - Not meaningful | | | | | | | | |
| | | | | | | | | |
| (1) Interest expense, net, includes non-cash gains on derivative instruments and non-cash amortization of deferred |
| financing fees. |
| | The Gas Company |
| |
| | | Quarter Ended March 31, |
| | | 2012 | | 2011 | | Change Favorable/(Unfavorable) |
| | | $ | | $ | | $ | | % |
| | ($ In Thousands) (Unaudited) |
| Contribution margin | | | | | | | | |
| Revenue - non-utility | | 31,629 | | 27,351 | | 4,278 | | 15.6 |
| Cost of revenue - non-utility | | 15,573 | | 16,057 | | 484 | | 3.0 |
| Contribution margin - non-utility | | 16,056 | | 11,294 | | 4,762 | | 42.2 |
| Revenue - utility | | 38,314 | | 34,273 | | 4,041 | | 11.8 |
| Cost of revenue - utility | | 28,217 | | 24,005 | | (4,212) | | (17.5) |
| Contribution margin - utility | | 10,097 | | 10,268 | | (171) | | (1.7) |
| Total contribution margin | | 26,153 | | 21,562 | | 4,591 | | 21.3 |
| Production | | 2,006 | | 1,676 | | (330) | | (19.7) |
| Transmission and distribution | | 5,448 | | 4,398 | | (1,050) | | (23.9) |
| Gross profit | | 18,699 | | 15,488 | | 3,211 | | 20.7 |
| Selling, general and administrative expenses | | 5,257 | | 4,217 | | (1,040) | | (24.7) |
| Depreciation and amortization | | 1,941 | | 1,773 | | (168) | | (9.5) |
| Operating income | | 11,501 | | 9,498 | | 2,003 | | 21.1 |
| Interest expense, net(1) | | (1,891) | | (2,014) | | 123 | | 6.1 |
| Other expense | | (69) | | (152) | | 83 | | 54.6 |
| Provision for income taxes | | (3,799) | | (2,902) | | (897) | | (30.9) |
| Net income(2) | | 5,742 | | 4,430 | | 1,312 | | 29.6 |
| | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | |
| Net income(2) | | 5,742 | | 4,430 | | | | |
| Interest expense, net(1) | | 1,891 | | 2,014 | | | | |
| Provision for income taxes | | 3,799 | | 2,902 | | | | |
| Depreciation and amortization | | 1,941 | | 1,773 | | | | |
| Other non-cash expenses | | 807 | | 670 | | | | |
| EBITDA excluding non-cash items | | 14,180 | | 11,789 | | 2,391 | | 20.3 |
| | | | | | | | | |
| EBITDA excluding non-cash items | | 14,180 | | 11,789 | | | | |
| Interest expense, net(1) | | (1,891) | | (2,014) | | | | |
| Non-cash derivative gains recorded in interest expense(1) | | (465) | | (276) | | | | |
| Amortization of debt financing costs(1) | | 120 | | 119 | | | | |
| Provision for income taxes, net of changes in deferred taxes | | (2,170) | | (2,285) | | | | |
| Changes in working capital | | (2,858) | | (4,415) | | | | |
| Cash provided by operating activities | | 6,916 | | 2,918 | | | | |
| Changes in working capital | | 2,858 | | 4,415 | | | | |
| Maintenance capital expenditures | | (1,764) | | (2,260) | | | | |
| Free cash flow | | 8,010 | | 5,073 | | 2,937 | | 57.9 |
| _____________________ | | | | | | | | |
| (1) Interest expense, net, includes non-cash gains 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 March 31, |
| | | 2012 | | | 2011 | | | Change Favorable/(Unfavorable) |
| | | $ | | | $ | | | $ | | | % | |
| | | ($ In Thousands) (Unaudited) |
| | | | | | | | | |
| Cooling capacity revenue | | 5,495 | | | 5,331 | | | 164 | | | 3.1 | |
| Cooling consumption revenue | | 3,473 | | | 2,430 | | | 1,043 | | | 42.9 | |
| Other revenue | | 639 | | | 690 | | | (51 | ) | | (7.4 | ) |
| Finance lease revenue | | 1,179 | | | 1,287 | | | (108 | ) | | (8.4 | ) |
| Total revenue | | 10,786 | | | 9,738 | | | 1,048 | | | 10.8 | |
| Direct expenses — electricity | | 2,538 | | | 1,946 | | | (592 | ) | | (30.4 | ) |
| Direct expenses — other(1) | | 4,557 | | | 4,959 | | | 402 | | | 8.1 | |
| Direct expenses — total | | 7,095 | | | 6,905 | | | (190 | ) | | (2.8 | ) |
| Gross profit | | 3,691 | | | 2,833 | | | 858 | | | 30.3 | |
| Selling, general and administrative expenses | | 891 | | | 923 | | | 32 | | | 3.5 | |
| Amortization of intangibles | | 341 | | | 337 | | | (4 | ) | | (1.2 | ) |
| Operating income | | 2,459 | | | 1,573 | | | 886 | | | 56.3 | |
| Interest expense, net(2) | | (2,329 | ) | | (2,259 | ) | | (70 | ) | | (3.1 | ) |
| Other income | | 57 | | | 56 | | | 1 | | | 1.8 | |
| Benefit for income taxes | | 10 | | | 347 | | | (337 | ) | | (97.1 | ) |
| Noncontrolling interest | | (211 | ) | | (213 | ) | | 2 | | | 0.9 | |
| Net loss | | (14 | ) | | (496 | ) | | 482 | | | 97.2 | |
| | | | | | | | | |
| Reconciliation of net loss to EBITDA excluding non-cash items: | | | | | | | | |
| Net loss | | (14 | ) | | (496 | ) | | | | |
| Interest expense, net(2) | | 2,329 | | | 2,259 | | | | | |
| Benefit for income taxes | | (10 | ) | | (347 | ) | | | | |
| Depreciation(1) | | 1,674 | | | 1,647 | | | | | |
| Amortization of intangibles | | 341 | | | 337 | | | | | |
| Other non-cash expenses | | 29 | | | 38 | | | | | |
| EBITDA excluding non-cash items | | 4,349 | | | 3,438 | | | 911 | | | 26.5 | |
| | | | | | | | | |
| EBITDA excluding non-cash items | | 4,349 | | | 3,438 | | | | | |
| Interest expense, net(2) | | (2,329 | ) | | (2,259 | ) | | | | |
| Non-cash derivative gains recorded in interest expense(2) | | (303 | ) | | (361 | ) | | | | |
| Amortization of debt financing costs(2) | | 170 | | | 170 | | | | | |
| Equipment lease receivable, net | | 838 | | | 740 | | | | | |
| Benefit for income taxes, net of changes in deferred taxes | | 47 | | | (45 | ) | | | | |
| Changes in working capital | | (1,825 | ) | | 1,323 | | | | | |
| Cash provided by operating activities | | 947 | | | 3,006 | | | | | |
| Changes in working capital | | 1,825 | | | (1,323 | ) | | | | |
| Maintenance capital expenditures | | (87 | ) | | (66 | ) | | | | |
| Free cash flow | | 2,685 | | | 1,617 | | | 1,068 | | | 66.0 | |
| _____________________ | | | | | | | | |
| (1) Includes depreciation expense of $1.7 million and $1.6 million for the quarters ended March 31, 2012 and 2011, respectively. |
| (2) Interest expense, net, includes non-cash gains on derivative instruments and non-cash amortization of deferred financing fees. |
| | Atlantic Aviation |
| | Quarter Ended March 31, |
| | | 2012 | | 2011 | | Change Favorable/(Unfavorable) |
| | | $ | | $ | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | |
| Fuel revenue | | 141,325 | | 125,713 | | 15,612 | | 12.4 |
| Non-fuel revenue | | 42,802 | | 42,796 | | 6 | | - |
| Total revenue | | 184,127 | | 168,509 | | 15,618 | | 9.3 |
| Cost of revenue | | | | | | | | |
| Cost of revenue-fuel | | 100,308 | | 86,054 | | (14,254) | | (16.6) |
| Cost of revenue-non-fuel | | 5,567 | | 5,248 | | (319) | | (6.1) |
| Total cost of revenue | | 105,875 | | 91,302 | | (14,573) | | (16.0) |
| Fuel gross profit | | 41,017 | | 39,659 | | 1,358 | | 3.4 |
| Non-fuel gross profit | | 37,235 | | 37,548 | | (313) | | (0.8) |
| Gross profit | | 78,252 | | 77,207 | | 1,045 | | 1.4 |
| Selling, general and administrative expenses | | 43,944 | | 45,051 | | 1,107 | | 2.5 |
| Depreciation and amortization | | 13,815 | | 13,819 | | 4 | | - |
| Operating income | | 20,493 | | 18,337 | | 2,156 | | 11.8 |
| Interest expense, net(1) | | (8,785) | | (10,193) | | 1,408 | | 13.8 |
| Other expense | | (16) | | (227) | | 211 | | 93.0 |
| Provision for income taxes | | (4,710) | | (3,175) | | (1,535) | | (48.3) |
| Net income(2) | | 6,982 | | 4,742 | | 2,240 | | 47.2 |
| | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | |
| Net income(2) | | 6,982 | | 4,742 | | | | |
| Interest expense, net(1) | | 8,785 | | 10,193 | | | | |
| Provision for income taxes | | 4,710 | | 3,175 | | | | |
| Depreciation and amortization | | 13,815 | | 13,819 | | | | |
| Other non-cash (income) expenses | | (141) | | 146 | | | | |
| EBITDA excluding non-cash items | | 34,151 | | 32,075 | | 2,076 | | 6.5 |
| | | | | | | | | |
| EBITDA excluding non-cash items | | 34,151 | | 32,075 | | | | |
| Interest expense, net(1) | | (8,785) | | (10,193) | | | | |
| Interest rate swap breakage fees(1) | | (248) | | (1,105) | | | | |
| Non-cash derivative gains recorded in interest expense(1) | | (4,614) | | (3,768) | | | | |
| Amortization of debt financing costs(1) | | 688 | | 741 | | | | |
| Provision for income taxes, net of changes in deferred taxes | | (207) | | (495) | | | | |
| Changes in working capital | | 340 | | 223 | | | | |
| Cash provided by operating activities | | 21,325 | | 17,478 | | | | |
| Changes in working capital | | (340) | | (223) | | | | |
| Maintenance capital expenditures | | (1,876) | | (836) | | | | |
| Free cash flow | | 19,109 | | 16,419 | | 2,690 | | 16.4 |
| _____________________ | | | | | | | | |
| (1) Interest expense, net, includes non-cash gains 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 INCOME (LOSS) TO EBITDA |
| EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE |
| CASH FLOW |
| | | | | | | | | | |
| | For the Quarter Ended March 31, 2012 | | |
| ($ 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 | | 10,705 | | 5,742 | | (7 | ) | 6,982 | | (8,119 | ) | 15,303 | | | 21,409 | | (14 | ) |
| Interest expense, net(2) | | 3,296 | | 1,891 | | 1,165 | | 8,785 | | - | | 15,136 | | | 6,591 | | 2,329 | |
| Provision (benefit) for income taxes | | 7,184 | | 3,799 | | (5 | ) | 4,710 | | (1,978 | ) | 13,709 | | | 14,367 | | (10 | ) |
| Depreciation | | 8,083 | | 1,735 | | 837 | | 5,816 | | - | | 16,471 | | | 16,165 | | 1,674 | |
| Amortization of intangibles | | 371 | | 206 | | 171 | | 7,999 | | - | | 8,747 | | | 742 | | 341 | |
| Base management fee paid in LLC interests | | - | | - | | - | | - | | 4,995 | | 4,995 | | | - | | - | |
| Other non-cash expense (income), net | | 94 | | 807 | | 15 | | (141 | ) | 56 | | 831 | | | 188 | | 29 | |
| EBITDA excluding non-cash items | | 29,731 | | 14,180 | | 2,175 | | 34,151 | | (5,046 | ) | 75,191 | | | 59,462 | | 4,349 | |
| | | | | | | | | | |
| EBITDA excluding non-cash items | | 29,731 | | 14,180 | | 2,175 | | 34,151 | | (5,046 | ) | 75,191 | | | 59,462 | | 4,349 | |
| Interest expense, net(2) | | (3,296 | ) | (1,891 | ) | (1,165 | ) | (8,785 | ) | - | | (15,136 | ) | | (6,591 | ) | (2,329 | ) |
| Interest rate swap breakage fees(2) | | - | | - | | - | | (248 | ) | - | | (248 | ) | | - | | - | |
| Non-cash derivative gains recorded in interest expense, net(2) | | (1,340 | ) | (465 | ) | (152 | ) | (4,614 | ) | - | | (6,570 | ) | | (2,679 | ) | (303 | ) |
| Amortization of deferred finance charges(2) | | 403 | | 120 | | 85 | | 688 | | - | | 1,296 | | | 805 | | 170 | |
| Equipment lease receivables, net | | - | | - | | 419 | | - | | - | | 419 | | | - | | 838 | |
| (Provision) benefit for income taxes, net of changes in deferred taxes | | (5,696 | ) | (2,170 | ) | 24 | | (207 | ) | 1,577 | | (6,472 | ) | | (11,392 | ) | 47 | |
| Changes in working capital | | 7,087 | | (2,858 | ) | (913 | ) | 340 | | (1,989 | ) | 1,667 | | | 14,173 | | (1,825 | ) |
| Cash provided by (used in) operating activities | | 26,889 | | 6,916 | | 474 | | 21,325 | | (5,458 | ) | 50,146 | | | 53,778 | | 947 | |
| Changes in working capital | | (7,087 | ) | 2,858 | | 913 | | (340 | ) | 1,989 | | (1,667 | ) | | (14,173 | ) | 1,825 | |
| Maintenance capital expenditures | | (4,059 | ) | (1,764 | ) | (44 | ) | (1,876 | ) | - | | (7,743 | ) | | (8,118 | ) | (87 | ) |
| | | | | | | | | | |
| Free cash flow | | 15,744 | | 8,010 | | 1,343 | | 19,109 | | (3,469 | ) | 40,736 | | | 31,487 | | 2,685 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | For the Quarter Ended March 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 | | 9,545 | | 4,430 | | (248 | ) | 4,742 | | (5,873 | ) | 12,596 | | | 19,090 | | (496 | ) |
| Interest expense, net(2) | | 2,342 | | 2,014 | | 1,130 | | 10,193 | | (1 | ) | 15,677 | | | 4,683 | | 2,259 | |
| Provision (benefit) for income taxes | | 6,772 | | 2,902 | | (174 | ) | 3,175 | | 1,256 | | 13,932 | | | 13,544 | | (347 | ) |
| Depreciation | | 7,573 | | 1,567 | | 824 | | 5,643 | | - | | 15,607 | | | 15,146 | | 1,647 | |
| Amortization of intangibles | | 265 | | 206 | | 169 | | 8,176 | | - | | 8,815 | | | 529 | | 337 | |
| Base management fee paid in LLC interests | | - | | - | | - | | - | | 3,632 | | 3,632 | | | - | | - | |
| Other non-cash (income) expense, net | | (4 | ) | 670 | | 19 | | 146 | | (408 | ) | 423 | | | (8 | ) | 38 | |
| EBITDA excluding non-cash items | | 26,492 | | 11,789 | | 1,719 | | 32,075 | | (1,394 | ) | 70,681 | | | 52,984 | | 3,438 | |
| | | | | | | | | | |
| EBITDA excluding non-cash items | | 26,492 | | 11,789 | | 1,719 | | 32,075 | | (1,394 | ) | 70,681 | | | 52,984 | | 3,438 | |
| Interest expense, net(2) | | (2,342 | ) | (2,014 | ) | (1,130 | ) | (10,193 | ) | 1 | | (15,677 | ) | | (4,683 | ) | (2,259 | ) |
| Interest rate swap breakage fees(2) | | - | | - | | - | | (1,105 | ) | - | | (1,105 | ) | | - | | - | |
| Non-cash derivative gains recorded in interest expense, net(2) | | (2,166 | ) | (276 | ) | (181 | ) | (3,768 | ) | - | | (6,391 | ) | | (4,332 | ) | (361 | ) |
| Amortization of deferred finance charges(2) | | 406 | | 119 | | 85 | | 741 | | - | | 1,351 | | | 811 | | 170 | |
| Equipment lease receivables, net | | - | | - | | 370 | | - | | - | | 370 | | | - | | 740 | |
| (Provision) benefit for income taxes, net of changes in deferred taxes | | (3,944 | ) | (2,285 | ) | (23 | ) | (495 | ) | 1,893 | | (4,854 | ) | | (7,888 | ) | (45 | ) |
| Changes in working capital | | 816 | | (4,415 | ) | 662 | | 223 | | (2,360 | ) | (5,074 | ) | | 1,632 | | 1,323 | |
| Cash provided by (used in) operating activities | | 19,262 | | 2,918 | | 1,503 | | 17,478 | | (1,860 | ) | 39,301 | | | 38,524 | | 3,006 | |
| Changes in working capital | | (816 | ) | 4,415 | | (662 | ) | (223 | ) | 2,360 | | 5,074 | | | (1,632 | ) | (1,323 | ) |
| Maintenance capital expenditures | | (4,257 | ) | (2,260 | ) | (33 | ) | (836 | ) | - | | (7,386 | ) | | (8,514 | ) | (66 | ) |
| | | | | | | | | | |
| Free cash flow | | 14,189 | | 5,073 | | 809 | | 16,419 | | 500 | | 36,990 | | | 28,378 | | 1,617 | |
| ___________________________ | | | | | | | | | | |
| (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, net, includes non-cash gains on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. | | |
CONTACT:
Investor enquiries
Jay A. Davis
Investor Relations
Macquarie Infrastructure Company
(212) 231-1825
or
Media enquiries
Paula Chirhart
Corporate Communications
Macquarie Infrastructure Company
(212) 231-1310
