Exhibit 99.1
Macquarie Infrastructure Company Reports 2012 Financial Results, Highlights Increase in Free Cash Flow
- Reports 9.3% growth in proportionately combined free cash flow per share
- Announces early Q4 distribution from IMTT, successful refinance of IMTT revolving credit facility and amendment of Shareholders’ Agreement
- Intends to seek refinance of Atlantic Aviation in the first half of 2013
- Announces introduction of Direct Stock Purchase Plan
- Adds solar power generation to portfolio of operating companies
- Forecasts 13% growth in proportionately combined free cash flow in 2013
NEW YORK--(BUSINESS WIRE)--February 20, 2013--Macquarie Infrastructure Company LLC (NYSE: MIC) reported improved financial results for 2012 including a 9.3% year on year increase in proportionately combined free cash flow per share. Including the effect of refinancing and acquisition related expenses proportionately combined free cash flow totaled $3.45 per share in 2012 compared with $3.16 per share in 2011.
Underlying proportionately combined free cash flow improved to $3.66, reflecting improved operating results at each of MIC’s businesses. The improvement was partially offset by $0.19 per share of refinancing related expenses incurred by Hawaii Gas in the third quarter of 2012, and $0.02 per share of costs associated with the acquisition of two solar power generating facilities in the fourth quarter.
“Operations at each of our businesses produced financial performance in line with our expectations for the year. At $3.66 per share in underlying proportionately combined free cash flow, we ended the year just about where we expected to given that the impact of Hurricane Sandy was at least $0.10 per share,” said James Hooke, Chief Executive Officer of MIC.
MIC regards free cash flow as an important tool in assessing the performance of its capital intensive, cash generative businesses. 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.
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. See “Cash Generation” below for MIC’s definition of free cash flow and further information.
MIC has a 50% stake in IMTT, one of the largest bulk liquid storage terminalling businesses in the U.S. The Company received a distribution of $12.0 million from IMTT in December 2012. The distribution for the fourth quarter would ordinarily have been paid in early 2013 but was accelerated into 2012 in light of the legislative stalemate in Washington, D.C. late in the year. All of the distributions due MIC and its co-investor in IMTT through and including the fourth quarter of 2012 have been paid.
The Company facilitated the successful closing of a refinancing of IMTT’s revolving credit facility on February 15, 2013. Under the terms of the refinancing, IMTT’s debt maturity was extended to February 2018 from June 2014 and the size of the facility was increased to $1.04 billion. At closing the drawn balance on the facility was $752.2 million.
MIC shares ownership and control of IMTT with a trust representing the family of the founder of the business. The joint ownership is subject to a Shareholders’ Agreement between the parties. In February the parties agreed to amend the Shareholders’ Agreement and replaced a provision that required the maintenance of reserves equal to the “normal requirements of the business and approved unexpended capital expenditures” with one that specifies reserves of $185.0 million.
The Shareholders’ Agreement was also amended to grant either party the right to seek injunctive relief to enforce the payment of a dividend consistent with the requirements of the Shareholders’ Agreement.
MIC owns and operates Atlantic Aviation, a nationwide network of 62 fixed based operations, or FBOs, that provide primarily fuel services to owners and operators of private jet aircraft. Atlantic Aviation is capitalized in part with a debt package that matures in October of 2014. Prior to the maturity or earlier refinance of the debt, a significant portion of the excess cash generated by Atlantic Aviation is being applied to the repayment of debt principal.
MIC anticipates seeking to refinance the Atlantic Aviation debt package in the first half of 2013. The Company expects that, following the refinancing of the debt package, it will have access to the excess cash generated by Atlantic Aviation. A portion of the excess cash is expected to be used to supplement MIC’s quarterly cash dividend.
Reflecting a heightened level of interest from shareholders, MIC is preparing to implement a direct stock purchase plan. The Company anticipates making the program available to investors around the end of the first quarter. “We’re listening to our investors and providing them with an economical means of reinvesting our quarterly cash dividend. We hope that this will improve the attractiveness of MIC to retail shareholders,” said Hooke.
Commenting on trading to date in 2013 and the Company’s forecast for the full year Hooke said, “Our businesses, generally, have been and continue to be remarkably stable performers. We expect this to continue to be the case in 2013 and to supplement our results with the contribution from our MIC Solar operations.”
Hooke said that he expects year on year growth in proportionately combined free cash flow, excluding the Hawaii Gas refinancing costs and costs related to the solar acquisitions, to be approximately 13% in 2013. MIC has provided guidance on proportionately combined free cash flow per share in 2013 of between $4.10 and $4.20 per share.
MIC invested $9.4 million in two solar power generating (photovoltaic) facilities in the fourth quarter of 2012 in partnership with Chevron Energy Solutions. The facilities have a combined generating capacity of approximately 30 megawatts. Located in the U.S. southwest, in Tucson, Arizona and Presidio, Texas, the operations are capable of producing enough clean electricity to power 6,200 homes. The power being produced has been sold to regional utilities pursuant to 20 and 25 year power purchase agreements.
MIC reported consolidated revenue of $1.03 billion for 2012 compared with $988.8 million in 2011. The 4.6% growth in revenue reflects primarily higher energy prices, such as the cost of jet fuel and gas feedstock that typically are passed through to customers of MIC’s businesses and a higher volume of products sold.
Reported gross profit - defined as revenue less cost of goods sold - removes the volatility in revenue associated with fluctuations in energy prices that typically are passed through to customers. MIC’s consolidated gross profit totaled $397.0 million in 2012, an increase of 3.8% over 2011. The year on year growth is the result of increases in both the volume of product sold, and the margins on sales, generally, at each of MIC’s businesses.
MIC’s net income from continuing operations, after tax, was $14.3 million and $28.9 million for years ended December 31, 2012 and 2011, respectively. The Company’s net income declined in 2012 compared with 2011 primarily as a result of its incurring pre-tax performance fees of $67.3 million. The performance fees were generated as a result of MIC having produced a total shareholder return significantly in excess of its benchmark index. The fee is recorded as an expense even though it was reinvested in additional shares of MIC. The reinvestment renders the payment a non-cash expense.
MIC’s accumulated net operating loss carry forward (NOL) was used to offset its consolidated federal income tax liability for 2012. At year-end 2012 MIC’s federal NOL balance was $192.2 million. The Company expects utilization of this NOL balance will offset any current federal income tax liability, other than Alternative Minimum Tax, through the 2015 tax year and into 2016.
Cash Generation
MIC reports EBITDA excluding non-cash items on a consolidated and operating segment basis and reconciles each to consolidated net income (loss). 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 non-cash items reflected in the statement of operations including base and performance fees settled in shares.
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, 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 (loss) 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 except with respect to MIC Solar for which free cash flow is defined as distributions received from the business.
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| | | | | For the Year Ended December 31, 2012 |
| ($ in Thousands) (Unaudited) | | | | | IMTT 50% | | Hawaii Gas | | District Energy 50.01% | | Atlantic Aviation | | MIC Corporate | | Proportionately Combined(1) | | IMTT 100% | | District Energy 100% |
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| Gross profit | | | | | 130,415 | | | 72,439 | | | 9,365 | | | 305,434 | | | 355 | | | 518,008 | | | | 260,830 | | | 18,726 | |
| EBITDA excluding non-cash items | | | | | 115,843 | | | 56,305 | | | 11,087 | | | 130,755 | | | (15,999 | ) | | 297,991 | | | | 231,686 | | | 22,169 | |
| Free cash flow | | | | | 59,566 | | | 34,551 | | | 7,034 | | | 74,065 | | | (14,367 | ) | | 160,849 | | | | 119,132 | | | 14,066 | |
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| | | | | For the Year Ended December 31, 2011 |
| ($ in Thousands) (Unaudited) | | | | | IMTT 50% | | Hawaii Gas | | District Energy 50.01% | | Atlantic Aviation | | MIC Corporate | | Proportionately Combined(1) | | IMTT 100% | | District Energy 100% |
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| 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 | |
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| Gross profit variance | | | | | 10.6 | % | | 15.0 | % | | 5.0 | % | | 1.2 | % | | N/A | | | 5.4 | % | | | 10.6 | % | | 5.0 | % |
| EBITDA excluding non-cash items variance | | | | 12.3 | % | | 14.8 | % | | (2.3 | )% | | 3.2 | % | | 87.6 | % | | 5.8 | % | | | 12.3 | % | | (2.3 | )% |
| Free cash flow variance | | | | | 9.7 | % | | 21.2 | % | | (1.9 | )% | | 20.0 | % | | 119.3 | % | | 10.8 | % | | | 9.7 | % | | (1.9 | )% |
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| (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. |
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| | | | | For the Quarter Ended December 31, 2012 |
| ($ in Thousands) (Unaudited) | | | | | IMTT 50% | | Hawaii Gas | | District Energy 50.01% | | Atlantic Aviation | | MIC Corporate | | Proportionately Combined(1) | | IMTT 100% | | District Energy 100% |
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| Gross profit | | | | | 33,932 | | 18,988 | | 1,590 | | 74,571 | | 355 | | 129,436 | | | 67,863 | | 3,180 |
| EBITDA excluding non-cash items | | | | | 29,717 | | 15,043 | | 1,946 | | 31,376 | | (7,151) | | 70,930 | | | 59,433 | | 3,891 |
| Free cash flow | | | | | 9,299 | | 18,386 | | 1,092 | | 22,643 | | (10,143) | | 41,277 | | | 18,597 | | 2,184 |
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| | | | | For the Quarter Ended December 31, 2011 |
| ($ in Thousands) (Unaudited) | | | | | IMTT 50% | | Hawaii Gas | | District Energy 50.01% | | Atlantic Aviation | | MIC Corporate | | Proportionately Combined(1) | | IMTT 100% | | District Energy 100% |
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| 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 |
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| Gross profit variance | | | | | 13.1% | | 13.1% | | (11.9)% | | (3.3)% | | N/A | | 3.0% | | | 13.1% | | (11.9)% |
| EBITDA excluding non-cash items variance | | 12.4% | | 9.1% | | (15.8)% | | (4.4)% | | 116.4% | | (1.6)% | | | 12.4% | | (15.8)% |
| Free cash flow variance | | | | | (36.1)% | | 78.8% | | (22.0)% | | 43.1% | | 124.7% | | 9.9% | | | (36.1)% | | (22.0)% |
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| (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 discussion below refer to results for 100% of the business, not MIC’s 50% interest.
For the quarter and year ended December 31, 2012 compared with the comparable periods in 2011:
- Terminal revenue increased 9.7% and 7.8% respectively, primarily as a result of growth in average storage rates and an increase in storage capacity.
- Average storage rental rates increased 7.6% and 7.0% respectively - the increase was at the higher end of the forecast range primarily as a result of strong demand in the Lower Mississippi River and New York Harbor markets.
- Terminal operating costs increased 4.5% and 1.9% respectively, with the majority of the increase attributable to $4.2 million in repairs and maintenance related to the effects of Hurricanes Isaac and Sandy (largely property insurance deductibles) in the second half of the year as well as the planned conversion of certain tanks in Bayonne from residual to distillate service.
- Terminal gross profit increased 14.0% and 12.6% respectively, reflecting the construction of additional storage capacity during the year, the full year effect of rate increases implemented in the prior year and the part-year effect of rate increases implemented in 2012.
Capacity utilization was 92.8% and 94.1% in the fourth quarter and full year periods, respectively. Capacity utilization for the full year 2011 was 94.3%. A larger portion of total capacity, including a 500,000 barrel tank taken offline for cleaning and inspection, was out of service in the fourth quarter of 2012.
“IMTT’s results for 2012 highlight the strength of its position in its two key markets, New York Harbor and the Lower Mississippi River, and the supply/demand imbalance in those markets in particular,” said Hooke.
EBITDA excluding non-cash items grew by 12.4% and 12.3% in each of the fourth quarter and full year ended December 31, 2012, respectively, compared with the same periods in 2011. The improvement was principally the result of growth in terminal gross profit in 2012 compared with 2011, partially offset by an increase in selling, general and administrative expenses.
Free cash flow generated by IMTT decreased 36.1% in the fourth quarter of 2012 compared with the fourth quarter of 2011. The decline reflects primarily an increase in taxes and costs incurred in connection with repairs and maintenance at the business’ Bayonne, New Jersey facility. These relate principally to the effects of hurricane Sandy and expenses not yet reimbursed by property insurance coverage and planned tank cleaning and conversions at the same location.
For the full year IMTT’s free cash flow increased 9.7% compared with 2011. The growth in free cash flow year on year reflects the business’ improved operating results, primarily increased terminal gross profit, partially offset by increases in taxes, higher maintenance capital expenditures and a smaller contribution from IMTT’s environmental response subsidiary.
Hawaii Gas
Hawaii Gas 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 performance of Hawaii Gas during 2012 reflects the ongoing recovery of the Hawaiian economy, notably the tourism industry. Aggregate gas sales increased 1.9% for the full-year period compared with 2011. Aggregate sales of gas decreased 2.0% for the fourth quarter of 2012 compared with the comparable period in 2011. The decline in the fourth quarter was primarily attributable to a single commercial customer of the non-utility business being off-line for repairs for most of the period.
Aggregate gross profit at Hawaii Gas – revenue less the cost of feedstock, production and transmission, and distribution – increased 13.1% and 15.0%, respectively, for the fourth quarter and full-year periods ended December 31, 2012 compared with the same periods in 2011. The improvement reflects the growth in the volume of gas sold as noted above, and improvement in the margins on sales in the non-utility portion of the business. The growth was partially offset by higher costs, particularly overtime, those related to medical and benefits programs and costs associated with re-branding the business as Hawaii Gas.
“The strong performance of Hawaii Gas in 2012 can be attributed in part to the recovery in the Hawaiian economy but also to the hard work of the Hawaii Gas team attracting new business based on the many benefits of gas in the Hawaiian energy complex,” said Hooke.
EBITDA excluding non-cash items at Hawaii Gas increased 9.1% and 14.8% for the quarter and full-year ended December 31, 2012. The primary driver of the improvement was the increase in gross profit generated by the business, partially offset by an increase in selling, general and administrative expenses and costs associated with rebranding of the business from The Gas Company to Hawaii Gas.
Hawaii Gas generated $18.4 million and $34.6 million in free cash flow for the fourth quarter and full-year periods ended December 31, 2012. The 78.8% and 21.2% increases versus the prior comparable periods, respectively, reflect the improved operating results, a lower tax burden and differences in the timing of certain purchases, particularly shipments of foreign-sourced propane and the refinancing related expenses noted above.
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.
District Energy’s gross profit declined 11.9% in the fourth quarter of 2012 compared with the fourth quarter in 2011 as a result of relatively cooler weather at the end of 2012 that reduced demand for cooling services. However, full-year gross profit increased 5.0% compared with 2011 primarily as a result of contractual rate increases and the overall warmer temperatures in Chicago in 2012 compared with 2011.
EBITDA excluding non-cash items declined for the fourth quarter and full year periods ending December 31, 2012 by 15.8% and 2.3%, respectively. The decrease in full year EBITDA was the result of higher selling, general and administrative expenses and a reduction in payments under agreements to manage the business’ energy consumption during periods of peak demand partially offset by an increase in gross profit.
Free cash flow generated by District Energy in the fourth quarter totaled $2.2 million, down 22.0% compared with 2011 largely as a result of the reduction in gross profit for the period. For the full year 2012, District Energy generated $14.1 million in free cash flow, down 1.9% compared with 2011, principally as a result of the increased maintenance capital expenditures.
From the third quarter of 2012 the free cash flow generated by District Energy is being used to reduce the principal balance on the business’ debt facilities in advance of the maturity of these facilities in third quarter of 2014. Including a payment made in January 2013 District Energy has repaid $9.0 million in debt principal.
Atlantic Aviation
Atlantic Aviation owns and operates a network of fixed base operations (FBOs) located at 62 airports in the U.S. Atlantic Aviation’s FBOs provide primarily fuel, terminal services, and aircraft hangar services to owners and operators of private (general aviation or GA) jet aircraft. The network is one of the largest of its type in the U.S. air transportation industry.
Atlantic Aviation reported a decrease in gross profit of 3.3% for the fourth quarter of 2012 compared with 2011, but an increase of 1.2% for full year. The full year increase in gross profit reflected an increase in GA fuel gross profit of 1.4% in the aggregate and 2.7% on a same-store basis. The quarterly decline is largely attributable to the interruption of GA activity in the wake of Hurricane Sandy. The same-store basis is adjusted for acquisitions and divestitures of certain facilities during the prior year. Average GA fuel margins increased by 1.2% in 2012 compared with 2011.
Overall gross profit growth was constrained by a 55.2% decrease in de-icing gross profit in 2012 compared with 2011. The decrease was the result of the unseasonably mild winter across the northern tier of the U.S. in 2012.
A portion of the value in Atlantic Aviation is derived from the average length of the leases underlying its portfolio of FBOs. Along with the leasehold from the relevant airport authorities comes the right to sell fuel on those airports and the potential to generate cash flows in the process. The longer Atlantic has that right, the higher the present value of those cash flows, all else being unchanged.
“The management at Atlantic Aviation has done an excellent job extending the average lease maturity of the portfolio. The remaining average lease life increased from 17.8 years at December 2011 to 19.0 years at December 2012 including the passing of another year and this has created substantial value for MIC,” said Hooke.
Free cash flow generated by Atlantic Aviation increased to $22.6 million and $74.1million, respectively, in the fourth quarter and full-year period in 2012 compared with 2011. The 43.1% and 20.0% increases reflect primarily a reduction in interest expense associated with an approximately 400 basis point reduction in interest rates associated with Atlantic Aviation’s primary debt facility and changes in the timing of certain payments, particularly those related to wholesale fuel purchases.
The interest rate reduction was the result of the expiration of interest rate hedges that had been used to swap floating rate interest for fixed. From the fourth quarter of 2012 through to the maturity of Atlantic Aviation’s debt facilities in October 2014, or the earlier refinance of the facilities, the majority of the excess cash generated by the business will be used to repay debt principal of those facilities.
MIC believes, based on the current performance of the business and debt market conditions that it will seek to refinance the debt of Atlantic Aviation in the first half of 2013.
MIC Solar
MIC completed an investment in two utility-scale solar (photovoltaic) power generation facilities in the fourth quarter of 2012. The facilities, one each in Arizona and Texas, are capable of generating a combined 30 megawatts of electric power. The power has been sold to regional utilities pursuant to 20 and 25 year power purchase agreements.
The Arizona facility is currently in operation. The facility in Texas is expected to commence operations in the second quarter of 2013.
The Company’s $9.4 million investment has been contributed through a structure from which it will receive a disproportionate share of the cash flows produced by the business. MIC’s co-investor in the facilities, Chevron Energy Solutions, will receive a disproportionate share of the tax benefits produced by the investment.
MIC Solar does not meet the threshold for treatment as a reportable segment within MIC’s financial reports. For the fourth quarter of 2012, MIC recorded an expense of $3.8 million as a component of its corporate segment in connection with its investment in MIC Solar.
Business Outlook
MIC has provided the following guidance on the financial performance of its businesses and the Company in total in 2013. Among other things, the guidance reflects the benefit of the 50% bonus depreciation for assets placed in service in 2013 provided for in the American Taxpayer Relief Act of 2012. The capital intensity of MIC’s businesses, and the significant depreciation and amortization of their assets provides significant shelter from federal income taxes. MIC does not expect to generate a federal income tax liability in consolidation at least through the end of 2015.
IMTT – MIC expects IMTT to generate between $260.0 and $270.0 million of EBITDA in 2013. The anticipated increase relative to 2012 reflects the addition of new storage capacity and the impact of storage rate increases, partially offset by expected reductions in capacity resulting from two large tanks being taken off line for cleaning and inspection.
Storage rates are expected to increase in a range of between 5% and 7%, on average, in 2013. Approximately 25% of all storage contracts are expected to renew in 2013.
The additional storage capacity brought on line at the end of 2012 combined with that expected to be commissioned in 2013 is forecast to produce an incremental annualized $22.9 million in gross profit and EBITDA in 2013 over 2012. In addition, MIC expects IMTT to deploy approximately $60.0 million in maintenance capital expenditures over the full year.
Hawaii Gas is expected to generate between $57.0 and $63.0 million of EBITDA in 2013. The increase over 2012 is tied to the continued recovery in the Hawaiian economy and the ability of the business to increase the volume of gas it sells. Maintenance capital expenditures are anticipated to be approximately $8.3 million for the full year, in line with 2012.
District Energy is expected to generate approximately $20.0 million of EBITDA in 2013. Maintenance capital expenditures are expected to be approximately $1.0 million for the full year. MIC anticipates that all of the excess cash generated by District Energy will be swept to the reduction of the business’ debt principal. MIC does not expect to refinance District Energy prior to the fourth quarter of 2013.
Atlantic Aviation is expected to generate between $137.0 and $145.0 million of EBITDA in 2013. Maintenance capital expenditures are expected to be approximately $11.4 million for the full year.
MIC anticipates refinancing Atlantic Aviation’s debt facilities prior to the anniversary of those facilities in early October. In order to achieve a target leverage level of 4x trailing EBITDA or less ahead of the refinancing, MIC may use a portion of its holding company level cash to accelerate the repayment of Atlantic Aviation’s debt principal.
MIC Solar – The second of the two solar power generation facilities that MIC acquired in the fourth quarter of 2012 is expected to be commissioned in 2013. The two facilities are expected to produce a total of approximately $1.0 million in distributable cash flow in 2013. In addition, the Company expects to receive approximately $3.8 million as a return of capital in 2013.
The forecast results for the Company’s operating businesses, including the expenses of the holding company, are expected to produce proportionately combined free cash flow in a range of between $4.10 and $4.20 per share in 2013.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, February 21, 2013 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 21, 2013 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 21, 2013 through February 28, 2013, at +1(404) 537-3406, Passcode: 94587428. 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 a gas processing and distribution business, Hawaii Gas, 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 airport services business, Atlantic Aviation and two solar power generation facilities, collectively MIC Solar. 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.
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| CONSOLIDATED BALANCE SHEETS |
| ($ in Thousands, Except Share Data) |
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| | | | | December 31, 2012 | | | | December 31, 2011 |
| ASSETS | | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | | |
| Cash and cash equivalents | | | | | | $ | 141,376 | | | | | $ | 22,786 | |
| Accounts receivable, less allowance for doubtful accounts | | | | | | | | | | | | |
| of $875 and $445, respectively | | | | | | | 56,553 | | | | | | 56,458 | |
| Inventories | | | | | | | 20,617 | | | | | | 23,106 | |
| Prepaid expenses | | | | | | | 8,908 | | | | | | 7,338 | |
| Deferred income taxes | | | | | | | 6,803 | | | | | | 19,102 | |
| Other | | | | | | | 19,653 | | | | | | 14,523 | |
| Total current assets | | | | | | | 253,910 | | | | | | 143,313 | |
| Property, equipment, land and leasehold improvements, net | | | | | | | 708,031 | | | | | | 561,022 | |
| Restricted cash | | | | | | | 7,326 | | | | | | 12,769 | |
| Equipment lease receivables | | | | | | | 28,177 | | | | | | 32,189 | |
| Investment in unconsolidated business | | | | | | | 75,205 | | | | | | 230,401 | |
| Goodwill | | | | | | | 514,640 | | | | | | 516,175 | |
| Intangible assets, net | | | | | | | 626,902 | | | | | | 662,135 | |
| Deferred financing costs, net of accumulated amortization | | | | | | | 7,845 | | | | | | 8,845 | |
| Other | | | | | | | 1,658 | | | | | | 1,784 | |
| Total assets | | | | | | $ | 2,223,694 | | | | | $ | 2,168,633 | |
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| LIABILITIES AND MEMBERS' EQUITY | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | |
| Due to manager - related party | | | | | | $ | 50,253 | | | | | $ | 4,300 | |
| Accounts payable | | | | | | | 26,499 | | | | | | 29,199 | |
| Accrued expenses | | | | | | | 35,499 | | | | | | 23,827 | |
| Current portion of notes payable and capital leases | | | | | | | 1,667 | | | | | | 1,952 | |
| Current portion of long-term debt | | | | | | | 106,580 | | | | | | 34,535 | |
| Fair value of derivative instruments | | | | | | | 7,450 | | | | | | 39,339 | |
| Customer deposits | | | | | | | 4,650 | | | | | | 4,679 | |
| Other | | | | | | | 12,732 | | | | | | 11,071 | |
| Total current liabilities | | | | | | | 245,330 | | | | | | 148,902 | |
| Notes payable and capital leases, net of current portion | | | | | | | 2,303 | | | | | | 2,026 | |
| Long-term debt, net of current portion | | | | | | | 1,052,584 | | | | | | 1,086,053 | |
| Deferred income taxes | | | | | | | 169,392 | | | | | | 177,262 | |
| Fair value of derivative instruments | | | | | | | 5,360 | | | | | | 15,576 | |
| Other | | | | | | | 51,160 | | | | | | 44,954 | |
| Total liabilities | | | | | | | 1,526,129 | | | | | | 1,474,773 | |
| Commitments and contingencies | | | | | | | - | | | | | | - | |
| Members’ equity: | | | | | | | | | | | | |
| LLC interests, no par value; 500,000,000 authorized; 47,453,943 LLC | | | | | | | | | | | | |
interests issued and outstanding at December 31, 2012 and 46,338,225 LLC interests issued and outstanding at December 31, 2011 | | | | | | 883,143 | | | | | | 951,729 | |
| Additional paid in capital | | | | | | | 21,447 | | | | | | 21,447 | |
| Accumulated other comprehensive loss | | | | | | | (20,801 | ) | | | | | (27,412 | ) |
| Accumulated deficit | | | | | | | (228,761 | ) | | | | | (242,082 | ) |
| Total members’ equity | | | | | | | 655,028 | | | | | | 703,682 | |
| Noncontrolling interests | | | | | | | 42,537 | | | | | | (9,822 | ) |
| Total equity | | | | | | | 697,565 | | | | | | 693,860 | |
| Total liabilities and equity | | | | | | $ | 2,223,694 | | | | | $ | 2,168,633 | |
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| ($ in Thousands, Except Share and Per Share Data) |
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| | | | | | | | | | | | | | | |
| | | | | | | Year Ended December 31, 2012 | | | | Year Ended December 31, 2011 | | | | Year Ended December 31, 2010 |
| Revenue | | | | | | | | | | | | | | | |
| Revenue from product sales | | | | | $ | 677,164 | | | | $ | 639,521 | | | | $ | 514,344 | |
| Revenue from product sales - utility | | | | | | 144,439 | | | | | 140,746 | | | | | 113,752 | |
| Service revenue | | | | | | | 207,907 | | | | | 203,532 | | | | | 204,852 | |
| Financing and equipment lease income | | | | | | 4,536 | | | | | 4,992 | | | | | 7,843 | |
| Total revenue | | | | | | | 1,034,046 | | | | | 988,791 | | | | | 840,791 | |
| Costs and expenses | | | | | | | | | | | | | | | |
| Cost of product sales | | | | | | | 462,229 | | | | | 437,049 | | | | | 326,734 | |
| Cost of product sales - utility | | | | | | 122,254 | | | | | 116,413 | | | | | 90,542 | |
| Cost of services | | | | | | | 52,609 | | | | | 52,744 | | | | | 53,088 | |
| Selling, general and administrative | | | | | | 213,372 | | | | | 202,486 | | | | | 201,787 | |
| Fees to manager - related party | | | | | | 89,227 | | | | | 15,475 | | | | | 10,051 | |
| Depreciation | | | | | | | 31,587 | | | | | 33,815 | | | | | 29,721 | |
| Amortization of intangibles | | | | | | 34,601 | | | | | 42,107 | | | | | 34,898 | |
| (Gain) loss on disposal of assets | | | | | | (1,358 | ) | | | | 1,522 | | | | | 17,869 | |
| Total operating expenses | | | | | | 1,004,521 | | | | | 901,611 | | | | | 764,690 | |
| Operating income | | | | | | | 29,525 | | | | | 87,180 | | | | | 76,101 | |
| Other income (expense) | | | | | | | | | | | | | | |
| Interest income | | | | | | | 222 | | | | | 112 | | | | | 29 | |
| Interest expense(1) | | | | | | | (46,623 | ) | | | | (59,361 | ) | | | | (106,834 | ) |
| Equity in earnings and amortization charges of investee | | | | | | 32,327 | | | | | 22,763 | | | | | 31,301 | |
| Other income, net | | | | | | | 1,085 | | | | | 912 | | | | | 712 | |
| Net income from continuing operations before income taxes | | | | | | 16,536 | | | | | 51,606 | | | | | 1,309 | |
| (Provision) benefit for income taxes | | | | | | (2,285 | ) | | | | (22,718 | ) | | | | 8,697 | |
| Net income from continuing operations | | | | | $ | 14,251 | | | | $ | 28,888 | | | | $ | 10,006 | |
| Net income from discontinued operations, net of taxes | | | | | | - | | | | | - | | | | | 81,323 | |
| Net income | | | | | | $ | 14,251 | | | | $ | 28,888 | | | | $ | 91,329 | |
| Less: net income attributable to noncontrolling interests | | | | | | 930 | | | | | 1,545 | | | | | 659 | |
| Net income attributable to MIC LLC | | | | | $ | 13,321 | | | | $ | 27,343 | | | | $ | 90,670 | |
| Basic income per share from continuing operations attributable | | | | | | | | | | | | | | |
| to MIC LLC interest holders | | | | | $ | 0.29 | | | | $ | 0.59 | | | | $ | 0.21 | |
| Basic income per share from discontinued operations attributable | | | | | | | | | | | | | |
| to MIC LLC interest holders | | | | | | - | | | | | - | | | | | 1.78 | |
| Basic income per share attributable to MIC LLC interest holders | | | | | $ | 0.29 | | | | $ | 0.59 | | | | $ | 1.99 | |
| Weighted average number of shares outstanding: basic | | | | | | 46,635,049 | | | | | 45,995,207 | | | | | 45,549,803 | |
| Diluted income per share from continuing operations attributable | | | | | | | | | | | | | |
| to MIC LLC interest holders | | | | | $ | 0.29 | | | | $ | 0.59 | | | | $ | 0.21 | |
| Diluted income per share from discontinued operations | | | | | | | | | | | | | | |
| attributable to MIC LLC interest holders | | | | | | - | | | | | - | | | | | 1.78 | |
| Diluted income per share attributable to MIC LLC interest holders | | | | | $ | 0.29 | | | | $ | 0.59 | | | | $ | 1.99 | |
| Weighted average number of shares outstanding: diluted | | | | | | 46,655,289 | | | | | 46,021,015 | | | | | 45,631,610 | |
| Cash dividends declared per share | | | | | $ | 2.20 | | | | $ | 0.80 | | | | $ | - | |
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(1) Interest expense includes non-cash losses on derivative instruments of $21.6 million, $35.0 million and $81.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. |
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| ($ in Thousands) |
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| | | | | | | Year Ended December 31, 2012 | | | | | Year Ended December 31, 2011 | | | | | Year Ended December 31, 2010 | |
| Operating activities | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | $ | | 14,251 | | | | $ | | 28,888 | | | | $ | | 91,329 | |
| Adjustments to reconcile net income to net cash provided by operating | | | | | | | | | | | | | | | | |
| activities from continuing operations: | | | | | | | | | | | | | | | | | |
| Net income from discontinued operations before noncontrolling interests | | | | | | - | | | | | - | | | | | (81,323 | ) |
| Depreciation and amortization of property and equipment | | | | | | 38,314 | | | | | 40,454 | | | | | 36,276 | |
| Amortization of intangible assets | | | | | | 34,601 | | | | | 42,107 | | | | | 34,898 | |
| (Gain) loss on disposal of assets | | | | | | (1,979 | ) | | | | 617 | | | | | 17,869 | |
| Equity in earnings and amortization charges of investees | | | | | | (32,327 | ) | | | | (22,763 | ) | | | | (31,301 | ) |
| Equity distributions from investees | | | | | | 86,952 | | | | | - | | | | | 15,000 | |
| Amortization of debt financing costs | | | | | | 4,232 | | | | | 4,086 | | | | | 4,347 | |
| Adjustments to derivative instruments | | | | | | (26,428 | ) | | | | (18,244 | ) | | | | 23,410 | |
| Base management fees settled in LLC interests | | | | | | 21,898 | | | | | 15,475 | | | | | 5,403 | |
| Performance fees settled in LLC interests | | | | | | 67,329 | | | | | - | | | | | - | |
| Equipment lease receivable, net | | | | | | 3,548 | | | | | 3,105 | | | | | 2,761 | |
| Deferred rent | | | | | | | 421 | | | | | 385 | | | | | 413 | |
| Deferred taxes | | | | | | | (1,580 | ) | | | | 19,209 | | | | | (11,729 | ) |
| Other non-cash expenses, net | | | | | | 2,036 | | | | | 2,748 | | | | | 1,817 | |
| Changes in other assets and liabilities, net of acquisitions: | | | | | | | | | | | | | | | | | |
| Restricted cash | | | | | | | - | | | | | - | | | | | 50 | |
| Accounts receivable | | | | | | | (933 | ) | | | | (4,633 | ) | | | | (2,424 | ) |
| Inventories | | | | | | | 3,087 | | | | | (5,061 | ) | | | | (2,833 | ) |
| Prepaid expenses and other current assets | | | | | | (3,461 | ) | | | | (3,602 | ) | | | | 453 | |
| Due to manager - related party | | | | | | 57 | | | | | 10 | | | | | (15 | ) |
| Accounts payable and accrued expenses | | | | | | 6,479 | | | | | (9,696 | ) | | | | (4,821 | ) |
| Income taxes payable | | | | | | | (414 | ) | | | | 668 | | | | | 1,051 | |
| Other, net | | | | | | | 1,828 | | | | | (2,711 | ) | | | | (2,076 | ) |
| Net cash provided by operating activities from continuing operations | | | | | | 217,911 | | | | | 91,042 | | | | | 98,555 | |
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| Investing activities | | | | | | | | | | | | | | | | | | |
| Acquisitions of businesses and investments, net of cash acquired | | | | | | (64,817 | ) | | | | (23,149 | ) | | | | - | |
| Proceeds from sale of assets | | | | | | 5,625 | | | | | 17,006 | | | | | - | |
| Purchases of property and equipment | | | | | | (39,288 | ) | | | | (33,764 | ) | | | | (22,690 | ) |
| Investment in capital leased assets | | | | | | - | | | | | (24 | ) | | | | (2,976 | ) |
| Return of investment in unconsolidated business | | | | | | 101,110 | | | | | - | | | | | - | |
| Other | | | | | | | (153 | ) | | | | 249 | | | | | 892 | |
| Net cash provided by (used in) investing activities from continuing operations | | | | | | 2,477 | | | | | (39,682 | ) | | | | (24,774 | ) |
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| Financing activities | | | | | | | | | | | | | | | | | | |
| Proceeds from long-term debt | | | | | | 192,570 | | | | | 13,406 | | | | | 141 | |
| Net proceeds on line of credit facilities | | | | | | - | | | | | 4,600 | | | | | 500 | |
| Dividends paid to holders of LLC interests | | | | | | (112,487 | ) | | | | (27,618 | ) | | | | - | |
| Contributions received from noncontrolling interests | | | | | | 55,473 | | | | | - | | | | | 300 | |
| Distributions paid to noncontrolling interests | | | | | | (4,781 | ) | | | | (8,077 | ) | | | | (5,346 | ) |
| Payment of long-term debt | | | | | | (237,240 | ) | | | | (36,330 | ) | | | | (74,036 | ) |
| Debt financing costs paid | | | | | | (2,942 | ) | | | | (4 | ) | | | | (186 | ) |
| Change in restricted cash | | | | | | 8,663 | | | | | 1,010 | | | | | 2,236 | |
| Payment of notes and capital lease obligations | | | | | | (1,054 | ) | | | | (124 | ) | | | | (137 | ) |
| Net cash used in financing activities from continuing operations | | | | | | | (101,798 | ) | | | | | (53,137 | ) | | | | | (76,528 | ) |
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| Net change in cash and cash equivalents from continuing operations | | | | | | 118,590 | | | | | (1,777 | ) | | | | (2,747 | ) |
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| MACQUARIE INFRASTRUCTURE COMPANY LLC |
| CONSOLIDATED STATEMENTS OF CASH FLOWS- continued |
| ($ in Thousands) |
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| | | | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Year Ended December 31, 2010 |
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| Cash flows (used in) provided by discontinued operations: | | | | | | | | | | | | | | |
| Net cash used in operating activities | | | | | $ | - | | | $ | - | | | $ | (12,703 | ) |
| Net cash provided by investing activities | | | | | | - | | | | - | | | | 134,356 | |
| Net cash used in financing activities | | | | | | - | | | | - | | | | (124,183 | ) |
| Cash used in discontinued operations(1) | | | | | | - | | | | - | | | | (2,530 | ) |
| Change in cash of discontinued operations held for sale(1) | | | | | | - | | | | - | | | | 2,385 | |
| Net change in cash and cash equivalents | | | | | | 118,590 | | | | (1,777 | ) | | | (2,892 | ) |
| Cash and cash equivalents, beginning of period | | | | | | 22,786 | | | | 24,563 | | | | 27,455 | |
| Cash and cash equivalents, end of period- continuing operations | | | | | $ | 141,376 | | | $ | 22,786 | | | $ | 24,563 | |
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| Supplemental disclosures of cash flow information for continuing | | | | | | | | | | | | | | |
| operations: | | | | | | | | | | | | | | | |
| Non-cash investing and financing activities: | | | | | | | | | | | | | | |
| Accrued purchases of property and equipment | | | | | $ | 9,623 | | | $ | 3,201 | | | $ | 3,593 | |
| Acquisition of equipment through capital leases | | | | | $ | 3,117 | | | $ | 2,663 | | | $ | 139 | |
| Issuance of LLC interests to manager for performance fees | | | | | $ | 23,509 | | | $ | - | | | $ | - | |
| Issuance of LLC interests to manager for base management fees | | | | | $ | 19,821 | | | $ | 14,467 | | | $ | 4,083 | |
| Issuance of LLC interests to independent directors | | | | | $ | 571 | | | $ | 450 | | | $ | 450 | |
| Taxes paid | | | | | | $ | 4,870 | | | $ | 2,913 | | | $ | 1,655 | |
| Interest paid | | | | | | $ | 58,916 | | | $ | 72,949 | | | $ | 78,718 | |
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| (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. |
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Macquarie Infrastructure Company LLC |
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CONSOLIDATED STATEMENT OF OPERATIONS – MD&A |
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| | | | | | | Quarter Ended December 31, | | | Change Favorable/(Unfavorable) | Year Ended December 31, | | | Change Favorable/(Unfavorable) |
| | | | | | 2012 | | | 2011 | | | $ | | | % | | | 2012 | | | 2011 | | | $ | | | % |
| | | | | | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Revenue from product sales | | | | | | $ | 168,696 | | | | $ | 165,041 | | | | 3,655 | | | | 2.2 | | | | $ | 677,164 | | | | $ | 639,521 | | | | 37,643 | | | | 5.9 | |
| Revenue from product sales - utility | | | | | | 33,783 | | | | | 34,964 | | | | (1,181 | ) | | | (3.4 | ) | | | | 144,439 | | | | | 140,746 | | | | 3,693 | | | | 2.6 | |
| Service revenue | | | | | | | 47,854 | | | | | 48,942 | | | | (1,088 | ) | | | (2.2 | ) | | | | 207,907 | | | | | 203,532 | | | | 4,375 | | | | 2.1 | |
| Financing and equipment lease income | | | | | | 1,088 | | | | | 1,208 | | | | (120 | ) | | | (9.9 | ) | | | | 4,536 | | | | | 4,992 | | | | (456 | ) | | | (9.1 | ) |
| Total revenue | | | | | | | 251,421 | | | | | 250,155 | | | | 1,266 | | | | 0.5 | | | | | 1,034,046 | | | | | 988,791 | | | | 45,255 | | | | 4.6 | |
| Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of product sales | | | | | | | 115,451 | | | | | 111,023 | | | | (4,428 | ) | | | (4.0 | ) | | | | 462,229 | | | | | 437,049 | | | | (25,180 | ) | | | (5.8 | ) |
| Cost of product sales - utility | | | | | | | 27,757 | | | | | 29,571 | | | | 1,814 | | | | 6.1 | | | | | 122,254 | | | | | 116,413 | | | | (5,841 | ) | | | (5.0 | ) |
| Cost of services | | | | | | | 11,120 | | | | | 12,040 | | | | 920 | | | | 7.6 | | | | | 52,609 | | | | | 52,744 | | | | 135 | | | | 0.3 | |
| Gross profit | | | | | | | 97,093 | | | | | 97,521 | | | | (428 | ) | | | (0.4 | ) | | | | 396,954 | | | | | 382,585 | | | | 14,369 | | | | 3.8 | |
| Selling, general and administrative | | | | | | 56,071 | | | | | 51,801 | | | | (4,270 | ) | | | (8.2 | ) | | | | 213,372 | | | | | 202,486 | | | | (10,886 | ) | | | (5.4 | ) |
| Fees to manager - related party | | | | | | 50,119 | | | | | 4,222 | | | | (45,897 | ) | | | NM | | | | | 89,227 | | | | | 15,475 | | | | (73,752 | ) | | | NM | |
| Depreciation | | | | | | | 8,883 | | | | | 7,910 | | | | (973 | ) | | | (12.3 | ) | | | | 31,587 | | | | | 33,815 | | | | 2,228 | | | | 6.6 | |
| Amortization of intangibles | | | | | | | 8,709 | | | | | 8,707 | | | | (2 | ) | | | (0.0 | ) | | | | 34,601 | | | | | 42,107 | | | | 7,506 | | | | 17.8 | |
| Loss (gain) on disposal of assets | | | | | | 21 | | | | | (221 | ) | | | (242 | ) | | | (109.5 | ) | | | | (1,358 | ) | | | | 1,522 | | | | 2,880 | | | | 189.2 | |
| Total operating expenses | | | | | | | 123,803 | | | | | 72,419 | | | | (51,384 | ) | | | (71.0 | ) | | | | 367,429 | | | | | 295,405 | | | | (72,024 | ) | | | (24.4 | ) |
| Operating (loss) income | | | | | | | (26,710 | ) | | | | 25,102 | | | | (51,812 | ) | | | NM | | | | | 29,525 | | | | | 87,180 | | | | (57,655 | ) | | | (66.1 | ) |
| Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | | | | | | 106 | | | | | 8 | | | | 98 | | | | NM | | | | | 222 | | | | | 112 | | | | 110 | | | | 98.2 | |
| Interest expense(1) | | | | | | | (7,547 | ) | | | | (10,388 | ) | | | 2,841 | | | | 27.3 | | | | | (46,623 | ) | | | | (59,361 | ) | | | 12,738 | | | | 21.5 | |
| Equity in earnings and amortization charges of investees | | | | | | 9,032 | | | | | 8,695 | | | | 337 | | | | 3.9 | | | | | 32,327 | | | | | 22,763 | | | | 9,564 | | | | 42.0 | |
| Other income, net | | | | | | | 840 | | | | | 107 | | | | 733 | | | | NM | | | | | 1,085 | | | | | 912 | | | | 173 | | | | 19.0 | |
Net (loss) income before income taxes | | | | | | (24,279 | ) | | | | 23,524 | | | | (47,803 | ) | | | NM | | | | | 16,536 | | | | | 51,606 | | | | (35,070 | ) | | | (68.0 | ) |
| Benefit (provision) for income taxes | | | | | | 12,413 | | | | | (11,083 | ) | | | 23,496 | | | | NM | | | | | (2,285 | ) | | | | (22,718 | ) | | | 20,433 | | | | 89.9 | |
| Net (loss) income | | | | | | $ | (11,866 | ) | | | $ | 12,441 | | | | (24,307 | ) | | | (195.4 | ) | | | $ | 14,251 | | | | $ | 28,888 | | | | (14,637 | ) | | | (50.7 | ) |
| Less: net (loss) income attributable to noncontrolling interests | | | | | | (1,836 | ) | | | | 149 | | | | 1,985 | | | | NM | | | | | 930 | | | | | 1,545 | | | | 615 | | | | 39.8 | |
| Net (loss) income attributable to MIC LLC | | | | | $ | (10,030 | ) | | | $ | 12,292 | | | | (22,322 | ) | | | (181.6 | ) | | | $ | 13,321 | | | | $ | 27,343 | | | | (14,022 | ) | | | (51.3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
(1) Interest expense includes non-cash losses on derivative instruments of $1.3 million and $21.6 million for the quarter and year ended December 31, 2012, respectively, and non-cash losses on derivative instruments of $3.8 million and $35.0 million for the quarter and year ended December 31, 2011, respectively. |
| |
| |
| | | | Quarter Ended December 31, | | Change | | Year Ended December 31, | | Change |
| | | 2012 | | 2011 | | | $ | | % | | 2012 | | 2011 | | $ | | % |
| | | ($ In Thousands) (Unaudited) |
| Net (loss) income attributable to MIC LLC(1) | | $ | (10,030 | ) | | $ | 12,292 | | | | | | | $ | 13,321 | | | $ | 27,343 | | | | | |
| Interest expense, net(2) | | | 7,441 | | | | 10,380 | | | | | | | | 46,401 | | | | 59,249 | | | | | |
| (Benefit) provision for income taxes | | | (12,413 | ) | | | 11,083 | | | | | | | | 2,285 | | | | 22,718 | | | | | |
| Depreciation(3) | | | | 8,883 | | | | 7,910 | | | | | | | | 31,587 | | | | 33,815 | | | | | |
| Depreciation - cost of services(3) | | | 1,691 | | | | 1,670 | | | | | | | | 6,727 | | | | 6,639 | | | | | |
| Amortization of intangibles(4) | | | 8,709 | | | | 8,707 | | | | | | | | 34,601 | | | | 42,107 | | | | | |
(Gain) loss on disposal of assets | | | (176 | ) | | | (332 | ) | | | | | | | (1,979 | ) | | | 617 | | | | | |
| Equity in earnings and amortization charges of investees(5) | | | - | | | | (8,695 | ) | | | | | | | - | | | | (22,763 | ) | | | | |
| Base management fees settled/to be settled in LLC interests | | | 6,299 | | | | 4,222 | | | | | | | | 21,898 | | | | 15,475 | | | | | |
| Perfromance fees settled/to be settled in LLC interests | | | 43,820 | | | | - | | | | | | | | 67,329 | | | | - | | | | | |
| Other non-cash (income) expense, net | | | (2,033 | ) | | | 705 | | | | | | | | 3,387 | | | | 4,678 | | | | | |
| EBITDA excluding non-cash items | | $ | 52,191 | | | $ | 47,942 | | | 4,249 | | 8.9 | | $ | 225,557 | | | $ | 189,878 | | | 35,679 | | 18.8 |
| EBITDA excluding non-cash items | | $ | 52,191 | | | $ | 47,942 | | | | | | | $ | 225,557 | | | $ | 189,878 | | | | | |
| Interest expense, net(2) | | | (7,441 | ) | | | (10,380 | ) | | | | | | | (46,401 | ) | | | (59,249 | ) | | | | |
| Interest rate swap breakage fee - Hawaii Gas(2) | | | - | | | | - | | | | | | | | (8,701 | ) | | | - | | | | | |
| Interest rate swap breakage fee - Atlantic Aviation(2) | | | - | | | | (80 | ) | | | | | | | (595 | ) | | | (2,327 | ) | | | | |
| Adjustments to derivative instruments recorded in interest expense(2) | | | (2,748 | ) | | | (8,591 | ) | | | | | | | (17,132 | ) | | | (15,917 | ) | | | | |
| Amortization of debt financing costs(2) | | | 942 | | | | 1,012 | | | | | | | | 4,232 | | | | 4,086 | | | | | |
| Cash distribution recevied in excess of equity in earning and amortization charges of investee(6) | | | | | | | | | | | | | | | | | | | | | | | | |
| | - | | | | - | | | | | | | | 54,625 | | | | - | | | | | |
| Equipment lease receivables, net | | | 953 | | | | 834 | | | | | | | | 3,548 | | | | 3,105 | | | | | |
| Provision/benefit for income taxes, net of changes in deferred taxes | | | 374 | | | | (554 | ) | | | | | | | (3,865 | ) | | | (3,509 | ) | | | | |
| Changes in working capital | | | 9,057 | | | | (6,306 | ) | | | | | | | 6,643 | | | | (25,025 | ) | | | | |
| Cash provided by operating activities | | | 53,328 | | | | 23,877 | | | | | | | | 217,911 | | | | 91,042 | | | | | |
| Changes in working capital | | | (9,057 | ) | | | 6,306 | | | | | | | | (6,643 | ) | | | 25,025 | | | | | |
| Adjustment to free cash flow for MIC Solar(7) | | | 3,850 | | | | - | | | | | | | | 3,850 | | | | - | | | | | |
| Maintenance capital expenditures | | | (6,019 | ) | | | (5,791 | ) | | | | | | | (19,851 | ) | | | (18,062 | ) | | | | |
| Free cash flow | | $ | 42,102 | | | $ | 24,392 | | | 17,710 | | 72.6 | | $ | 195,267 | | | $ | 98,005 | | | 97,262 | | 99.2 |
| (1) Net (loss) income attributable to MIC LLC excludes net loss of $1.8 million and net income of $930,000 attributable to noncontrolling interests for the quarter and year ended December 31, 2012, respectively, and net income of $149,000 and $1.5 million attributable to noncontrolling interests for the quarter and year ended December 31, 2011, respectively. |
| (2) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees at Hawaii Gas and Atlantic Aviation. |
| (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 $7.8 million for the quarter and year ended December 31, 2012, respectively, and $2.0 million and $7.5 million for the quarter and year ended December 31, 2011, 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 $342,000 for the quarter and year ended December 31, 2012, respectively, and $85,000 and $606,000 for the quarter and year ended December 31, 2011, 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 investee in the above table includes our 50% share of IMTT's earnings, offset by the distributions we received only up to our share of the earnings recorded in the calculation for EBITDA excluding non-cash items. For the quarter and year ended December 31, 2012, we recognized equity in earnings and amortization charges of investee income of $9.0 million and $32.3 million, respectively, in the consolidated condensed statement of operations, which was fully offset by the cash distributions received during the year ended December 31, 2012. |
(6) Cash distributions received in excess of equity in earnings and amortization charges of investee in the above table is the excess cumulative distributions received to the cumulative earnings recorded in equity in earnings and amortization charges of investee, since our investment in IMTT, adjusted for the current periods equity in earnings and amortization charges of investee in the calculation from net income attributable to MIC LLC to EBITDA excluding non-cash items above. The cumulative allocation of the $188.1 million distributions received during the year ended December 31, 2012 was $87.0 million recorded in net cash provided by operating activities and $101.1 million recorded in net cash provided by investing activities, as a return of investment, on the consolidated statements of cash flows. |
(7) Adjustment to free cash flow for MIC Solar represents the net loss and the cash distribution received, if any, from this business for the quarter and year ended December 31, 2012. No cash distributions were received during the quarter and year ended December 31, 2012. |
| IMTT | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Quarter Ended December 31, | | | Year Ended December 31, | |
| | 2012 | | | 2011 | | | Change Favorable/(Unfavorable) | | | 2012 | | | 2011 | | | Change Favorable/(Unfavorable) |
| | $ | | | $ | | | $ | | | % | | | | $ | | | $ | | | $ | | | % | |
| | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | | | | | | | | |
| Terminal revenue | | 117,611 | | | 107,177 | | | 10,434 | | | 9.7 | | | | 449,927 | | | 417,422 | | | 32,505 | | | 7.8 | |
| Environmental response revenue | | 6,409 | | | 7,565 | | | (1,156 | ) | | (15.3 | ) | | | 24,461 | | | 29,670 | | | (5,209 | ) | | (17.6 | ) |
| Total revenue | | 124,020 | | | 114,742 | | | 9,278 | | | 8.1 | | | | 474,388 | | | 447,092 | | | 27,296 | | | 6.1 | |
| Costs and expenses | | | | | | | | | | | | | | | | | |
| Terminal operating costs | | 49,905 | | | 47,763 | | | (2,142 | ) | | (4.5 | ) | | | 191,791 | | | 188,222 | | | (3,569 | ) | | (1.9 | ) |
| Environmental response operating costs | | 6,252 | | | 6,982 | | | 730 | | | 10.5 | | | | 21,767 | | | 23,013 | | | 1,246 | | | 5.4 | |
| Total operating costs | | 56,157 | | | 54,745 | | | (1,412 | ) | | (2.6 | ) | | | 213,558 | | | 211,235 | | | (2,323 | ) | | (1.1 | ) |
| Terminal gross profit | | 67,706 | | | 59,414 | | | 8,292 | | | 14.0 | | | | 258,136 | | | 229,200 | | | 28,936 | | | 12.6 | |
| Environmental response gross profit | | 157 | | | 583 | | | (426 | ) | | (73.1 | ) | | | 2,694 | | | 6,657 | | | (3,963 | ) | | (59.5 | ) |
| Gross profit | | 67,863 | | | 59,997 | | | 7,866 | | | 13.1 | | | | 260,830 | | | 235,857 | | | 24,973 | | | 10.6 | |
| General and administrative expenses | | 8,645 | | | 7,401 | | | (1,244 | ) | | (16.8 | ) | | | 31,050 | | | 30,976 | | | (74 | ) | | (0.2 | ) |
| Depreciation and amortization | | 19,000 | | | 16,383 | | | (2,617 | ) | | (16.0 | ) | | | 70,016 | | | 64,470 | | | (5,546 | ) | | (8.6 | ) |
| Operating income | | 40,218 | | | 36,213 | | | 4,005 | | | 11.1 | | | | 159,764 | | | 140,411 | | | 19,353 | | | 13.8 | |
| Interest expense, net(1) | | (6,330 | ) | | (6,944 | ) | | 614 | | | 8.8 | | | | (35,244 | ) | | (52,257 | ) | | 17,013 | | | 32.6 | |
| Other income | | 210 | | | 272 | | | (62 | ) | | (22.8 | ) | | | 1,890 | | | 1,486 | | | 404 | | | 27.2 | |
| Provision for income taxes | | (13,426 | ) | | (9,836 | ) | | (3,590 | ) | | (36.5 | ) | | | (51,293 | ) | | (34,820 | ) | | (16,473 | ) | | (47.3 | ) |
| Noncontrolling interests | | (203 | ) | | (48 | ) | | (155 | ) | | NM | | | | (839 | ) | | 137 | | | (976 | ) | | NM | |
| Net income | | 20,469 | | | 19,657 | | | 812 | | | 4.1 | | | | 74,278 | | | 54,957 | | | 19,321 | | | 35.2 | |
| | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | | | | | | | | | | |
| Net income | | 20,469 | | | 19,657 | | | | | | | | 74,278 | | | 54,957 | | | | | |
| Interest expense, net(1) | | 6,330 | | | 6,944 | | | | | | | | 35,244 | | | 52,257 | | | | | |
| Provision for income taxes | | 13,426 | | | 9,836 | | | | | | | | 51,293 | | | 34,820 | | | | | |
| Depreciation and amortization | | 19,000 | | | 16,383 | | | | | | | | 70,016 | | | 64,470 | | | | | |
| Other non-cash expense (income) | | 208 | | | 42 | | | | | | | | 855 | | | (114 | ) | | | | |
| EBITDA excluding non-cash items | | 59,433 | | | 52,862 | | | 6,571 | | | 12.4 | | | | 231,686 | | | 206,390 | | | 25,296 | | | 12.3 | |
| | | | | | | | | | | | | | | | | |
| EBITDA excluding non-cash items | | 59,433 | | | 52,862 | | | | | | | | 231,686 | | | 206,390 | | | | | |
| Interest expense, net(1) | | (6,330 | ) | | (6,944 | ) | | | | | | | (35,244 | ) | | (52,257 | ) | | | | |
| Adjustments to derivative instruments recorded in interest expense(1) | | (4,369 | ) | | (1,998 | ) | | | | | | | (4,271 | ) | | 16,655 | | | | | |
| Amortization of debt financing costs(1) | | 802 | | | 807 | | | | | | | | 3,221 | | | 3,233 | | | | | |
| Provision for income taxes, net of changes in deferred taxes | | (3,320 | ) | | 5,596 | | | | | | | | (17,885 | ) | | (8,169 | ) | | | | |
| Changes in working capital | | (4,044 | ) | | (6,233 | ) | | | | | | | 13,636 | | | (36,701 | ) | | | | |
| Cash provided by operating activities | | 42,172 | | | 44,090 | | | | | | | | 191,143 | | | 129,151 | | | | | |
| Changes in working capital | | 4,044 | | | 6,233 | | | | | | | | (13,636 | ) | | 36,701 | | | | | |
| Maintenance capital expenditures | | (27,619 | ) | | (21,199 | ) | | | | | | | (58,375 | ) | | (57,257 | ) | | | | |
| Free cash flow | | 18,597 | | | 29,124 | | | (10,527 | ) | | (36.1 | ) | | | 119,132 | | | 108,595 | | | 10,537 | | | 9.7 | |
| _____________________ | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | |
| (1) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
| Hawaii Gas | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Quarter Ended December 31, | Change Favorable/(Unfavorable) | | Year Ended December 31, | Change Favorable/(Unfavorable) |
| | 2012 | | 2011 | | | | | | | 2012 | | 2011 | | | | |
| | $ | | $ | | $ | | % | | | $ | | $ | | $ | | % |
| | ($ In Thousands) (Unaudited) |
| Contribution margin | | | | | | | | | | | | | | | | | |
| Revenue - non-utility | | 27,828 | | 29,678 | | (1,850) | | (6.2) | | | 116,099 | | 112,020 | | 4,079 | | 3.6 |
| Cost of revenue - non-utility | | 11,571 | | 14,956 | | 3,385 | | 22.6 | | | 52,091 | | 60,369 | | 8,278 | | 13.7 |
| Contribution margin - non-utility | | 16,257 | | 14,722 | | 1,535 | | 10.4 | | | 64,008 | | 51,651 | | 12,357 | | 23.9 |
| Revenue - utility | | 33,783 | | 34,964 | | (1,181) | | (3.4) | | | 144,439 | | 140,746 | | 3,693 | | 2.6 |
| Cost of revenue - utility | | 24,155 | | 25,455 | | 1,300 | | 5.1 | | | 105,723 | | 102,213 | | (3,510) | | (3.4) |
| Contribution margin - utility | | 9,628 | | 9,509 | | 119 | | 1.3 | | | 38,716 | | 38,533 | | 183 | | 0.5 |
| Total contribution margin | | 25,885 | | 24,231 | | 1,654 | | 6.8 | | | 102,724 | | 90,184 | | 12,540 | | 13.9 |
| Production | | 1,617 | | 2,089 | | 472 | | 22.6 | | | 8,569 | | 7,410 | | (1,159) | | (15.6) |
| Transmission and distribution | | 5,280 | | 5,348 | | 68 | | 1.3 | | | 21,716 | | 19,776 | | (1,940) | | (9.8) |
| Gross profit | | 18,988 | | 16,794 | | 2,194 | | 13.1 | | | 72,439 | | 62,998 | | 9,441 | | 15.0 |
| Selling, general and administrative expenses | | 4,062 | | 3,353 | | (709) | | (21.1) | | | 18,637 | | 16,025 | | (2,612) | | (16.3) |
| Depreciation and amortization | | 2,173 | | 1,800 | | (373) | | (20.7) | | | 7,981 | | 7,218 | | (763) | | (10.6) |
| Operating income | | 12,753 | | 11,641 | | 1,112 | | 9.6 | | | 45,821 | | 39,755 | | 6,066 | | 15.3 |
| Interest expense, net(1) | | (1,758) | | (1,226) | | (532) | | (43.4) | | | (10,860) | | (9,138) | | (1,722) | | (18.8) |
| Other expense | | (152) | | (11) | | (141) | | NM | | | (437) | | (220) | | (217) | | (98.6) |
| Provision for income taxes | | (4,561) | | (4,324) | | (237) | | (5.5) | | | (13,904) | | (12,225) | | (1,679) | | (13.7) |
| Net income(2) | | 6,282 | | 6,080 | | 202 | | 3.3 | | | 20,620 | | 18,172 | | 2,448 | | 13.5 |
| | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | | | | | | | | | | |
| Net income(2) | | 6,282 | | 6,080 | | | | | | | 20,620 | | 18,172 | | | | |
| Interest expense, net(1) | | 1,758 | | 1,226 | | | | | | | 10,860 | | 9,138 | | | | |
| Provision for income taxes | | 4,561 | | 4,324 | | | | | | | 13,904 | | 12,225 | | | | |
| Depreciation and amortization | | 2,173 | | 1,800 | | | | | | | 7,981 | | 7,218 | | | | |
| Other non-cash expense | | 269 | | 361 | | | | | | | 2,940 | | 2,279 | | | | |
| EBITDA excluding non-cash items | | 15,043 | | 13,791 | | 1,252 | | 9.1 | | | 56,305 | | 49,032 | | 7,273 | | 14.8 |
| | | | | | | | | | | | | | | | | |
| EBITDA excluding non-cash items | | 15,043 | | 13,791 | | | | | | | 56,305 | | 49,032 | | | | |
| Interest expense, net(1) | | (1,758) | | (1,226) | | | | | | | (10,860) | | (9,138) | | | | |
| Interest rate swap breakage fees(1) | | - | | - | | | | | | | (8,701) | | - | | | | |
| Adjustments to derivative instruments recorded in interest expense(1) | | (51) | | (1,157) | | | | | | | 3,038 | | (225) | | | | |
| Amortization of debt financing costs(1) | | 112 | | 120 | | | | | | | 858 | | 478 | | | | |
| Provision for income taxes, net of changes in deferred taxes | | 7,862 | | 971 | | | | | | | 1,974 | | (3,136) | | | | |
| Changes in working capital | | (7,829) | | (1,871) | | | | | | | (6,712) | | (9,350) | | | | |
| Cash provided by operating activities | | 13,379 | | 10,628 | | | | | | | 35,902 | | 27,661 | | | | |
| Changes in working capital | | 7,829 | | 1,871 | | | | | | | 6,712 | | 9,350 | | | | |
| Maintenance capital expenditures | | (2,822) | | (2,215) | | | | | | | (8,063) | | (8,503) | | | | |
| Free cash flow | | 18,386 | | 10,284 | | 8,102 | | 78.8 | | | 34,551 | | 28,508 | | 6,043 | | 21.2 |
| _____________________ | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | |
(1) Interest expense, net, includes adjustments to 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. |
| District Energy | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Quarter Ended December 31, | Change Favorable/(Unfavorable) | | Year Ended December 31, | Change Favorable/(Unfavorable) |
| | 2012 | | 2011 | | | | | | | 2012 | | 2011 | | | | |
| | $ | | $ | | $ | | % | | | $ | | $ | | $ | | % |
| | ($ In Thousands) (Unaudited) |
| | | | | | | | | | | | | | | | | |
| Cooling capacity revenue | | 5,636 | | 5,502 | | 134 | | 2.4 | | | 22,311 | | 21,784 | | 527 | | 2.4 |
| Cooling consumption revenue | | 2,816 | | 3,262 | | (446) | | (13.7) | | | 23,669 | | 22,707 | | 962 | | 4.2 |
| Other revenue | | 759 | | 676 | | 83 | | 12.3 | | | 2,782 | | 2,957 | | (175) | | (5.9) |
| Finance lease revenue | | 1,088 | | 1,208 | | (120) | | (9.9) | | | 4,536 | | 4,992 | | (456) | | (9.1) |
| Total revenue | | 10,299 | | 10,648 | | (349) | | (3.3) | | | 53,298 | | 52,440 | | 858 | | 1.6 |
| Direct expenses — electricity | | 1,907 | | 2,323 | | 416 | | 17.9 | | | 14,494 | | 14,641 | | 147 | | 1.0 |
| Direct expenses — other(1) | | 5,212 | | 4,715 | | (497) | | (10.5) | | | 20,078 | | 19,961 | | (117) | | (0.6) |
| Direct expenses — total | | 7,119 | | 7,038 | | (81) | | (1.2) | | | 34,572 | | 34,602 | | 30 | | 0.1 |
| Gross profit | | 3,180 | | 3,610 | | (430) | | (11.9) | | | 18,726 | | 17,838 | | 888 | | 5.0 |
| Selling, general and administrative expenses | | 1,166 | | 925 | | (241) | | (26.1) | | | 3,841 | | 3,374 | | (467) | | (13.8) |
| Amortization of intangibles | | 345 | | 345 | | - | | - | | | 1,372 | | 1,368 | | (4) | | (0.3) |
| Operating income | | 1,669 | | 2,340 | | (671) | | (28.7) | | | 13,513 | | 13,096 | | 417 | | 3.2 |
| Interest expense, net(2) | | (1,191) | | (1,458) | | 267 | | 18.3 | | | (7,712) | | (13,208) | | 5,496 | | 41.6 |
| Other income | | 83 | | 166 | | (83) | | (50.0) | | | 651 | | 1,478 | | (827) | | (56.0) |
| Provision for income taxes | | (151) | | (344) | | 193 | | 56.1 | | | (2,322) | | (212) | | (2,110) | | NM |
| Noncontrolling interests | | (195) | | (212) | | 17 | | 8.0 | | | (817) | | (850) | | 33 | | 3.9 |
| Net income | | 215 | | 492 | | (277) | | (56.3) | | | 3,313 | | 304 | | 3,009 | | NM |
| | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | | | | | | | | | |
| Net income | | 215 | | 492 | | | | | | | 3,313 | | 304 | | | | |
| Interest expense, net(2) | | 1,191 | | 1,458 | | | | | | | 7,712 | | 13,208 | | | | |
| Provision for income taxes | | 151 | | 344 | | | | | | | 2,322 | | 212 | | | | |
| Depreciation(1) | | 1,691 | | 1,670 | | | | | | | 6,727 | | 6,639 | | | | |
| Amortization of intangibles | | 345 | | 345 | | | | | | | 1,372 | | 1,368 | | | | |
| Other non-cash expense | | 298 | | 313 | | | | | | | 723 | | 964 | | | | |
| EBITDA excluding non-cash items | | 3,891 | | 4,622 | | (731) | | (15.8) | | | 22,169 | | 22,695 | | (526) | | (2.3) |
| | | | | | | | | | | | | | | | | |
| EBITDA excluding non-cash items | | 3,891 | | 4,622 | | | | | | | 22,169 | | 22,695 | | | | |
| Interest expense, net(2) | | (1,191) | | (1,458) | | | | | | | (7,712) | | (13,208) | | | | |
| Adjustments to derivative instruments recorded in interest expense(2) | (1,448) | | (1,221) | | | | | | | (2,906) | | 2,587 | | | | |
| Amortization of debt financing costs(2) | | 177 | | 170 | | | | | | | 699 | | 681 | | | | |
| Equipment lease receivable, net | | 953 | | 834 | | | | | | | 3,548 | | 3,105 | | | | |
Provision for income taxes, net of changes in deferred taxes | 51 | | 224 | | | | | | | (841) | | (868) | | | | |
| Changes in working capital | | 2,346 | | 1,128 | | | | | | | 893 | | 520 | | | | |
| Cash provided by operating activities | | 4,779 | | 4,299 | | | | | | | 15,850 | | 15,512 | | | | |
| Changes in working capital | | (2,346) | | (1,128) | | | | | | | (893) | | (520) | | | | |
| Maintenance capital expenditures | | (249) | | (370) | | | | | | | (891) | | (659) | | | | |
| Free cash flow | | 2,184 | | 2,801 | | (617) | | (22.0) | | | 14,066 | | 14,333 | | (267) | | (1.9) |
| _____________________ | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | |
| (1) Includes depreciation expense of $1.7 million and $6.7 million for the quarter and year ended December 31, 2012, respectively, and $1.7 million and $6.6 million for the quarter and year ended December 31, 2011, respectively. |
| (2) Interest expense, net, includes adjustments to 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) |
| | 2012 | | 2011 | | | | | | | 2012 | | 2011 | | | | |
| | $ | | $ | | $ | | % | | | $ | | $ | | $ | | % |
| | ($ In Thousands) (Unaudited) |
| Revenue | | | | | | | | | | | | | | | | | |
| Fuel revenue | | 140,513 | | 135,363 | | 5,150 | | 3.8 | | | 560,710 | | 527,501 | | 33,209 | | 6.3 |
| Non-fuel revenue | | 38,643 | | 39,502 | | (859) | | (2.2) | | | 159,145 | | 156,084 | | 3,061 | | 2.0 |
| Total revenue | | 179,156 | | 174,865 | | 4,291 | | 2.5 | | | 719,855 | | 683,585 | | 36,270 | | 5.3 |
| Cost of revenue | | | | | | | | | | | | | | | | | |
| Cost of revenue-fuel | | 100,584 | | 92,745 | | (7,839) | | (8.5) | | | 396,384 | | 363,694 | | (32,690) | | (9.0) |
| Cost of revenue-non-fuel | | 4,001 | | 5,001 | | 1,000 | | 20.0 | | | 18,037 | | 18,142 | | 105 | | 0.6 |
| Total cost of revenue | | 104,585 | | 97,746 | | (6,839) | | (7.0) | | | 414,421 | | 381,836 | | (32,585) | | (8.5) |
| Fuel gross profit | | 39,929 | | 42,618 | | (2,689) | | (6.3) | | | 164,326 | | 163,807 | | 519 | | 0.3 |
| Non-fuel gross profit | | 34,642 | | 34,501 | | 141 | | 0.4 | | | 141,108 | | 137,942 | | 3,166 | | 2.3 |
| Gross profit | | 74,571 | | 77,119 | | (2,548) | | (3.3) | | | 305,434 | | 301,749 | | 3,685 | | 1.2 |
| Selling, general and administrative expenses | | 43,209 | | 44,043 | | 834 | | 1.9 | | | 174,039 | | 174,148 | | 109 | | 0.1 |
| Depreciation and amortization | | 14,920 | | 14,472 | | (448) | | (3.1) | | | 56,681 | | 67,336 | | 10,655 | | 15.8 |
| Loss (gain) on disposal of assets | | 21 | | (221) | | (242) | | (109.5) | | | (1,358) | | 1,522 | | 2,880 | | 189.2 |
| Operating income | | 16,421 | | 18,825 | | (2,404) | | (12.8) | | | 76,072 | | 58,743 | | 17,329 | | 29.5 |
| Interest expense, net(1) | | (4,515) | | (7,696) | | 3,181 | | 41.3 | | | (27,963) | | (36,905) | | 8,942 | | 24.2 |
| Other income (expense) | | 931 | | (49) | | 980 | | NM | | | 969 | | (244) | | 1,213 | | NM |
| Provision for income taxes | | (5,525) | | (7,716) | | 2,191 | | 28.4 | | | (21,340) | | (11,952) | | (9,388) | | (78.5) |
| Net income(2) | | 7,312 | | 3,364 | | 3,948 | | 117.4 | | | 27,738 | | 9,642 | | 18,096 | | 187.7 |
| | | | | | | | | | | | | | | | | |
| Reconciliation of net income to EBITDA excluding non-cash items: | | | | | | | | | | | | | | | | |
| Net income(2) | | 7,312 | | 3,364 | | | | | | | 27,738 | | 9,642 | | | | |
| Interest expense, net(1) | | 4,515 | | 7,696 | | | | | | | 27,963 | | 36,905 | | | | |
| Provision for income taxes | | 5,525 | | 7,716 | | | | | | | 21,340 | | 11,952 | | | | |
| Depreciation and amortization | | 14,920 | | 14,472 | | | | | | | 56,681 | | 67,336 | | | | |
| (Gain) loss on disposal of assets | | (176) | | (332) | | | | | | | (1,979) | | 617 | | | | |
| Other non-cash (income) expense | | (720) | | (82) | | | | | | | (988) | | 228 | | | | |
| EBITDA excluding non-cash items | | 31,376 | | 32,834 | | (1,458) | | (4.4) | | | 130,755 | | 126,680 | | 4,075 | | 3.2 |
| | | | | | | | | | | | | | | | | |
| EBITDA excluding non-cash items | | 31,376 | | 32,834 | | | | | | | 130,755 | | 126,680 | | | | |
| Interest expense, net(1) | | (4,515) | | (7,696) | | | | | | | (27,963) | | (36,905) | | | | |
| Interest rate swap breakage fees(1) | | - | | (80) | | | | | | | (595) | | (2,327) | | | | |
| Adjustments to derivative instruments recorded in interest expense(1) | (1,249) | | (6,214) | | | | | | | (17,264) | | (18,280) | | | | |
| Amortization of debt financing costs(1) | | 653 | | 722 | | | | | | | 2,675 | | 2,927 | | | | |
Provision for income taxes, net of changes in deferred taxes | (674) | | (539) | | | | | | | (2,646) | | (1,481) | | | | |
| Changes in working capital | | (2,503) | | (7,825) | | | | | | | 46 | | (15,307) | | | | |
| Cash provided by operating activities | | 23,088 | | 11,202 | | | | | | | 85,008 | | 55,307 | | | | |
| Changes in working capital | | 2,503 | | 7,825 | | | | | | | (46) | | 15,307 | | | | |
| Maintenance capital expenditures | | (2,948) | | (3,206) | | | | | | | (10,897) | | (8,900) | | | | |
| Free cash flow | | 22,643 | | 15,821 | | 6,822 | | 43.1 | | | 74,065 | | 61,714 | | 12,351 | | 20.0 |
| _____________________ | | | | | | | | | | | | | | | | | |
| NM - Not meaningful | | | | | | | | | | | | | | | | | |
| (1) Interest expense, net, includes adjustments to 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. |
| | For the Year Ended December 31, 2012 |
| ($ in Thousands) (Unaudited) | | IMTT 50% | Hawaii Gas | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | | IMTT 100% | District Energy 100% |
| | | | | | | | | | | |
| Net income (loss) attributable to MIC LLC | | 37,139 | 20,620 | 1,657 | 27,738 | (70,677) | 16,477 | | | 74,278 | 3,313 |
| Interest expense (income), net(2) | | 17,622 | 10,860 | 3,857 | 27,963 | (134) | 60,168 | | | 35,244 | 7,712 |
| Provision (benefit) for income taxes | | 25,647 | 13,904 | 1,161 | 21,340 | (35,281) | 26,771 | | | 51,293 | 2,322 |
| Depreciation | | 32,819 | 6,982 | 3,364 | 24,451 | 154 | 67,770 | | | 65,637 | 6,727 |
| Amortization of intangibles | | 2,190 | 999 | 686 | 32,230 | - | 36,105 | | | 4,379 | 1,372 |
| Gain on disposal of assets | | - | - | - | (1,979) | - | (1,979) | | | - | - |
| Base management fee paid in LLC interests | | - | - | - | - | 21,898 | 21,898 | | | - | - |
| Performance fee paid in LLC interests | | - | - | - | - | 67,329 | 67,329 | | | - | - |
| Other non-cash expense (income) | | 428 | 2,940 | 362 | (988) | 712 | 3,453 | | | 855 | 723 |
| EBITDA excluding non-cash items | | 115,843 | 56,305 | 11,087 | 130,755 | (15,999) | 297,991 | | | 231,686 | 22,169 |
| | | | | | | | | | | |
| EBITDA excluding non-cash items | | 115,843 | 56,305 | 11,087 | 130,755 | (15,999) | 297,991 | | | 231,686 | 22,169 |
| Interest (expense) income, net(2) | | (17,622) | (10,860) | (3,857) | (27,963) | 134 | (60,168) | | | (35,244) | (7,712) |
| Interest rate swap breakage fees - Hawaii Gas(2) | | - | (8,701) | - | - | - | (8,701) | | | - | - |
| Interest rate swap breakage fees - Atlantic Aviation(2) | - | - | - | (595) | - | (595) | | | - | - |
| Adjustment to derivative instruments recorded in interest expense, net(2) | (2,136) | 3,038 | (1,453) | (17,264) | - | (17,815) | | | (4,271) | (2,906) |
| Amortization of deferred finance charges(2) | | 1,611 | 858 | 350 | 2,675 | - | 5,493 | | | 3,221 | 699 |
| Equipment lease receivables, net | | - | - | 1,774 | - | - | 1,774 | | | - | 3,548 |
| Provision/benefit for income taxes, net of changes in deferred taxes | (8,943) | 1,974 | (421) | (2,646) | (2,352) | (12,387) | | | (17,885) | (841) |
| Changes in working capital | | 6,818 | (6,712) | 447 | 46 | 12,416 | 13,015 | | | 13,636 | 893 |
| Cash provided by (used in) operating activities | | 95,572 | 35,902 | 7,927 | 85,008 | (5,801) | 218,607 | | | 191,143 | 15,850 |
| Changes in working capital | | (6,818) | 6,712 | (447) | (46) | (12,416) | (13,015) | | | (13,636) | (893) |
| Adjustment to free cash flow for MIC Solar(3) | | - | - | - | - | 3,850 | 3,850 | | | - | - |
| Maintenance capital expenditures | | (29,188) | (8,063) | (446) | (10,897) | - | (48,593) | | | (58,375) | (891) |
| | | | | | | | | | | |
| Free cash flow | | 59,566 | 34,551 | 7,034 | 74,065 | (14,367) | 160,849 | | | 119,132 | 14,066 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | For the Year Ended December 31, 2011 | |
| ($ in Thousands) (Unaudited) | | IMTT 50% | Hawaii Gas | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | | IMTT 100% | District Energy 100% |
| | | | | | | | | | | |
| Net income (loss) attributable to MIC LLC | | 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) | | | - | - |
| Adjustments to derivative instruments recorded in interest expense(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 |
| ___________________________ | | | | | | | | | | | |
|
| (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 adjustments to derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees at Hawaii Gas and Atlantic Aviation. |
(3) Adjustment to free cash flow for MIC Solar represents the net loss and the cash distribution received, if any, from this business for the year ended December 31, 2012. No cash distributions were received during the year ended December 31, 2012. |
| | | For the Quarter Ended December 31, 2012 |
| ($ in Thousands) (Unaudited) | | | IMTT 50% | Hawaii Gas | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | | IMTT 100% | District Energy 100% |
| | | | | | | | | | | | |
| Net income (loss) attributable to MIC LLC | | | 10,235 | 6,282 | 108 | 7,312 | (32,871) | (8,935) | | | 20,469 | 215 |
| Interest expense (income), net(2) | | | 3,165 | 1,758 | 596 | 4,515 | (23) | 10,011 | | | 6,330 | 1,191 |
| Provision (benefit) for income taxes | | | 6,713 | 4,561 | 76 | 5,525 | (22,650) | (5,775) | | | 13,426 | 151 |
| Depreciation | | | 8,382 | 1,791 | 846 | 6,938 | 154 | 18,110 | | | 16,763 | 1,691 |
| Amortization of intangibles | | | 1,119 | 382 | 173 | 7,982 | - | 9,655 | | | 2,237 | 345 |
| Gain on disposal of assets | | | - | - | - | (176) | - | (176) | | | - | - |
| Base management fee paid in LLC interests | | | - | - | - | - | 6,299 | 6,299 | | | - | - |
| Performance fee paid in LLC interests | | | - | - | - | - | 43,820 | 43,820 | | | - | - |
| Other non-cash expense (income) | | | 104 | 269 | 149 | (720) | (1,880) | (2,078) | | | 208 | 298 |
| EBITDA excluding non-cash items | | | 29,717 | 15,043 | 1,946 | 31,376 | (7,151) | 70,930 | | | 59,433 | 3,891 |
| | | | | | | | | | | | |
| EBITDA excluding non-cash items | | | 29,717 | 15,043 | 1,946 | 31,376 | (7,151) | 70,930 | | | 59,433 | 3,891 |
| Interest (expense) income, net(2) | | | (3,165) | (1,758) | (596) | (4,515) | 23 | (10,011) | | | (6,330) | (1,191) |
| Adjustment to derivative instruments recorded in interest expense, net(2) | | (2,185) | (51) | (724) | (1,249) | - | (4,209) | | | (4,369) | (1,448) |
| Amortization of deferred finance charges(2) | | | 401 | 112 | 89 | 653 | - | 1,255 | | | 802 | 177 |
| Equipment lease receivables, net | | | - | - | 477 | - | - | 477 | | | - | 953 |
| Provision/benefit for income taxes, net of changes in deferred taxes | | (1,660) | 7,862 | 26 | (674) | (6,865) | (1,311) | | | (3,320) | 51 |
| Changes in working capital | | | (2,022) | (7,829) | 1,173 | (2,503) | 17,043 | 5,862 | | | (4,044) | 2,346 |
| Cash provided by operating activities | | | 21,086 | 13,379 | 2,390 | 23,088 | 3,050 | 62,993 | | | 42,172 | 4,779 |
| Changes in working capital | | | 2,022 | 7,829 | (1,173) | 2,503 | (17,043) | (5,862) | | | 4,044 | (2,346) |
| Adjustment to free cash flow for MIC Solar(3) | | | - | - | - | - | 3,850 | 3,850 | | | - | - |
| Maintenance capital expenditures | | | (13,810) | (2,822) | (125) | (2,948) | - | (19,704) | | | (27,619) | (249) |
| Free cash flow | | | 9,299 | 18,386 | 1,092 | 22,643 | (10,143) | 41,277 | | | 18,597 | 2,184 |
| | | | | | | | | | | | |
| | | For the Quarter Ended December 31, 2011 | | | | |
| ($ in Thousands) (Unaudited) | | | IMTT 50% | Hawaii Gas | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(1) | | IMTT 100% | District Energy 100% |
| | | | | | | | | | | | |
| Net income (loss) attributable to MIC LLC | | | 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 | 172 | 8,156 | - | 8,905 | | | 742 | 345 |
| Loss 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) income, net(2) | | | (3,472) | (1,226) | (729) | (7,696) | 1 | (13,122) | | | (6,944) | (1,458) |
| Interest rate swap breakage fees(2) | | | - | - | - | (80) | - | (80) | | | - | - |
| Adjustments to derivative instruments recorded in interest expense(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 |
| | | | | | | | | | | | |
| ___________________________ | | | | | | | | | | | | |
| (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 adjustments to derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees at Atlantic Aviation. |
(3) Adjustment to free cash flow for MIC Solar represents the net loss and the cash distribution received, if any, from this business for the quarter and year ended December 31, 2012. No cash distributions were received during the quarter and year ended December 31, 2012. |
CONTACT:
Macquarie Infrastructure Company
Investor enquiries
Jay A. Davis, 212-231-1825
Investor Relations
or
Media enquiries
Paula Chirhart, 212-231-1310
Corporate Communications
