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8-K - MACQUARIE INFRASTRUCTURE COMPANY LLC 8-K - Macquarie Infrastructure Corp | a6631554.htm |
Exhibit 99.1
MIC Reports Strong 2010 Financial Performance
- Proportionately combined free cash flow increases 57.5% year on year
- Dividend of $0.20 per share expected in 1Q’11
- Net income from continuing operations moves to positive
NEW YORK--(BUSINESS WIRE)--February 23, 2011--Macquarie Infrastructure Company (NYSE: MIC) reported its financial results for 2010 including a 57.5% increase in proportionately combined free cash flow. Another solid year across the Company’s energy-related businesses and ongoing recovery in general aviation flight activity contributed to the increase.
Proportionately combined free cash flow (including MIC’s 50% interest in IMTT and 50.01% interest in District Energy) totaled $145.7 million or $3.19 per share in 2010.
The strong cash generation by the Company’s operating businesses provides MIC the opportunity to resume a regular cash distribution to shareholders. On February 16 the Company announced that its board of directors anticipates declaring a distribution of $0.20 per share for the first quarter in 2011. MIC expects to announce a record and payable date for the distribution along with its financial results for the first quarter in the first week of May.
“We’re pleased with the performance of our operating companies, particularly the sizable increase in the amount of cash they are producing,” said James Hooke, Chief Executive Officer of MIC. “Our energy-related businesses have been consistent performers throughout the economic downturn and now into the recovery. The performance of our aviation-related business is improving along with the level of business activity generally.”
MIC’s consolidated revenue increased 18.4% compared with 2009 to $840.8 million in 2010. The growth in revenue reflects both an increase in the volume and margins on products sold by MIC’s Atlantic Aviation and The Gas Company businesses, as well as higher energy costs, such as the cost of jet fuel, that are typically passed through to customers. Reported gross profit – defined as revenue less cost of goods sold - removes the volatility in revenue associated with fluctuations in energy costs. MIC’s consolidated gross profit totaled $370.4 million in 2010, an increase of 3.9% over 2009.
The increases in revenue and gross profit were partially offset by higher base management fees paid to MIC’s external manager. Base management fees are a function of the Company’s increased market capitalization in 2010 compared with 2009.
For the full year MIC reported net income from continuing operations of $10.0 million after tax, or $0.21 per share, compared with a net loss of $108.7 million, or $2.43 per share, in 2009. The turnaround in net income primarily reflects goodwill impairments and other non-cash write-downs taken in 2009 that did not recur in 2010.
“2010 involved executing on our plan at our operating companies,” said Hooke. “Having strengthened our balance sheet by repaying all of our holding company debt in 2009, as well as improving the financial condition of certain of our operating entities, we were able to focus on active operational management as a means of driving value in 2010,” he added.
The large amounts of intangible and high-value physical assets of its businesses generate substantial amounts of depreciation and amortization that serve to lower taxable and net income. These non-cash items may also contribute to a net operating loss (“NOL”) carryforward that serves to shelter taxable income that may be generated in the future. At year-end MIC’s federal NOL balance was $140.9 million. The Company does not expect to have a consolidated current federal income tax liability through the 2012 tax year.
“The accounting for our businesses and investment makes cash generation the key measure of overall performance,” noted Hooke. The primary drivers of the increase in cash generated by MIC’s energy-related businesses during 2010 include:
- Margin expansion at The Gas Company;
- Continued strong demand for the bulk liquid storage services of IMTT and an unusually large contribution from its environmental services subsidiary, Oil Mop, relating to the Gulf of Mexico oil spill; and,
- Warmer weather in Chicago in 2010 that drove increased demand and a net increase in the number of ton-hours of cooling under contract.
MIC’s aviation-related business, Atlantic Aviation, benefited from a 9.8% increase in general aviation (GA) flight activity at the airports on which it operates. Excluding events which are unlikely to recur in any given year, such as the G-20 meeting in Pittsburgh in 2009 or the closure of the Rifle, Colorado airport for runway construction in 2010, underlying volume of GA fuel sold increased by 5.8%. Margin compression in GA fuel sales during the first half of the year was offset by margin increases in the second half. Atlantic Aviation generated $48.5 million of free cash flow in 2010, or an increase of 31.2% over 2009.
Cash Generation
MIC reports EBITDA excluding non-cash items on a consolidated and operating segment basis and reconciles each to the corresponding financial statements. EBITDA excluding non-cash items is a metric 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, derivative gains and losses and adjustments for other non-cash items reflected in the statement of operations. MIC believes that EBITDA excluding non-cash items provides additional insight into the performance of its operating businesses, relative to each other and to similar businesses, without regard to capital structure, and their ability to service or reduce debt, fund capital expenditures and/or support distributions to the holding company.
MIC also reports free cash flow, as defined below, 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. MIC believes that reporting free cash flow will provide investors with additional insight into its ability to deploy cash, as GAAP metrics such as net income and cash from operating activities do not reflect all of the items that management considers in estimating the amount of cash generated by its operating entities.
MIC defines free cash flow as cash from operating activities, less maintenance capital expenditures and changes in working capital. Working capital movements are excluded on the basis that these are largely timing differences in payables and receivables, and are therefore not reflective of its ability to generate cash.
MIC notes that free cash flow does not fully reflect its ability to freely deploy generated cash, as it does not reflect required principal payments on indebtedness, payments of dividends, potential growth capital expenditures and other fixed obligations or the other cash items excluded when calculating free cash flow. Free cash flow may be calculated in a different manner by other companies, which limits its usefulness as a comparative measure. Free cash flow, as defined by MIC, should be used as a supplemental measure and not in lieu of financial results reported under GAAP.
For the Year Ended December 31, 2010 |
|||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% |
The Gas Company |
District Energy 50.01% |
Atlantic Aviation |
MIC Corporate |
Proportionately Combined(2) |
IMTT 100% | ||||||||
Gross profit | 136,267 | 58,826 | 10,037 | 291,532 | N/A | 496,662 | 272,534 | ||||||||
EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270) | 280,486 | 236,836 | ||||||||
Free cash flow | 73,328 | 25,135 | 7,274 | 48,484 | (8,504) | 145,717 | 146,656 | ||||||||
For the Year Ended December 31, 2009(1) |
|||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | ||||||||
Gross profit | 87,416 | 52,936 | 8,281 | 286,982 | N/A | 435,614 | 174,831 | ||||||||
EBITDA excluding non-cash items | 73,829 | 37,632 | 10,398 | 106,485 | (9,723) | 218,621 | 147,658 | ||||||||
Free cash flow | 38,561 | 20,294 | 6,536 | 36,943 | (9,842) | 92,492 | 77,121 | ||||||||
Free cash flow variance | 90.2% | 23.9% | 11.3% | 31.2% | 13.6% | 57.5% | 90.2% | ||||||||
_____________________ |
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(1) Reclassified to conform to current period presentation. | |||||||||||||||
(2) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. |
For the Quarter Ended December 31, 2010 |
|||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | ||||||||
Gross profit | 29,052 | 15,927 | 2,772 | 73,468 | N/A | 121,219 | 58,104 | ||||||||
EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199) | 68,026 | 51,147 | ||||||||
Free cash flow | 12,506 | 2,964 | 910 | 10,191 | 1,160 | 27,731 | 25,011 | ||||||||
For the Quarter Ended December 31, 2009(1) |
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($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | ||||||||
Gross profit | 23,611 | 14,741 | 1,729 | 71,772 | N/A | 111,853 | 47,222 | ||||||||
EBITDA excluding non-cash items | 19,618 | 10,185 | 2,377 | 26,655 | (3,739) | 55,096 | 39,236 | ||||||||
Free cash flow | 9,884 | 3,652 | 1,359 | 11,140 | (3,330) | 22,704 | 19,767 | ||||||||
Free cash flow variance | 26.5% | (18.8)% | (33.0)% | (8.5)% | 134.8% | 22.1% | 26.5% | ||||||||
_____________________ | |||||||||||||||
NM- Not meaningful | |||||||||||||||
(1) Reclassified to conform to current period presentation. | |||||||||||||||
(2) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. |
Energy-Related Businesses
IMTT
MIC has a 50% equity interest in IMTT, the operator of one of the largest independent bulk liquid storage terminal businesses in the U.S. IMTT owns and operates 10 marine storage terminals in the U.S. and is the part owner and operator of two terminals in Canada. The terminals store and handle a wide variety of petroleum grades, chemicals and vegetable and animal oils. To aid in meaningful analysis of the performance of IMTT across periods, the table and discussion below refers to results for 100% of the business, not just MIC’s 50% interest.
In addition to liquid storage and related operations, IMTT also owns and operates an environmental spill response services business known as Oil Mop. The Deepwater Horizon oil rig explosion and related oil spill in the Gulf of Mexico in 2010 and the involvement of Oil Mop in the cleanup efforts contributed substantially to the year-on-year improvement in the EBITDA and Free Cash Flow noted below. Terminal Gross Profit excludes the environmental spill response operations. Contributions from Oil Mop to IMTT’s financial results in 2011 are not expected to be material.
($Millions) | 2010 | 2009 | %Change | |||
Terminal Gross Profit | 203.5 | 173.8 | 17.1 | |||
EBITDA ex. non-cash items* | 236.8 | 147.7 | 60.4 | |||
Free Cash Flow* | 146.7 | 77.1 | 90.2 |
($Millions) | 4Q’10 | 4Q’09 | %Change | |||
Terminal Gross Profit | 50.2 | 45.9 | 9.4 | |||
EBITDA ex. non-cash items* | 51.1 | 39.2 | 30.4 | |||
Free Cash Flow* | 25.0 | 19.8 | 26.5 |
* See attached tables for a reconciliation of net income to EBITDA excluding non-cash items and cash from operating activities to free cash flow
The primary drivers of growth in terminal gross profit in 2010 compared with 2009 were increases in average storage tank rental rates of 7.2% and the addition of 2.2 million barrels of new or refurbished tank storage capacity during the year.
Free cash flow generated by IMTT in 2010 was used to fund growth projects, reduce revolving debt facility balances and to pay a dividend of $10.0 million to each of the two shareholders in the business including MIC. For the year MIC received $15.0 million in distributions from IMTT, including $5.0 million paid in the first quarter based on the performance of the business in 2009.
Maintenance and environmental capital expenditures totaled $45.0 million for 2010. Total maintenance and environmental capital expenditures for 2011 are expected to be $55.0 million. The projected increase reflects ongoing tank cleaning and inspections necessary to extend the useful life of the tanks that are expected to keep maintenance capital expenditures at elevated levels through 2014.
IMTT anticipates spending an additional $100.2 million over 2011 and 2012 to complete growth projects currently underway. A total of approximately $24.8 million was spent on these projects in 2010. The projects are expected to produce $21.4 million of incremental gross profit and EBITDA on an annualized basis. IMTT expects to record $4.9 million of this amount in 2011.
IMTT had $656.0 million of debt outstanding at December 31, 2010. The weighted average cost of the debt, including the cost of interest rate hedges and letter of credit fees, was 4.8%. The business’ debt agreement (primary facility) contains a covenant that limits IMTT’s ratio of debt to EBITDA to not more than 4.75x. At December 31, 2010 the ratio was 2.36x and the business had undrawn capacity on its existing debt facility of $651.0 million. All but $75.0 million of the $1,100.0 million revolving credit facility matures in June 2014. The facility contains no restrictions on the payment of dividends provided that the borrower is not in default.
Distribution of Funds from IMTT
In resuming its dividend, MIC had expected to include funds from the cash flow of its 50% equity interest in International Matex-Tank Terminals (IMTT). MIC believes that distribution of certain of these funds to the Company is required under the Shareholders’ Agreement between MIC and its co-investor who also owns a 50% stake. The co-investor has refused to distribute these funds and the Company has initiated dispute resolution proceedings as a result.
MIC is confident that the dispute resolution process will result in its having access to additional cash flow, a substantial portion of which could be used to increase its quarterly cash distribution. In the event the dispute resolution process advances to arbitration, the Company has been advised that the process could last six to twelve months.
The Gas Company
The Gas Company is the owner and operator of the only regulated (“utility”) gas manufacturing and pipeline transmission and distribution network on the islands of Hawaii. The business is also the owner and operator of the largest unregulated (“non-utility”) gas distribution operation on the islands.
($Millions) | 2010 | 2009 | %Change | |||
Gross Profit | 58.8 | 52.9 | 11.1 | |||
EBITDA ex, non-cash items* | 44.4 | 37.6 | 18.1 | |||
Free Cash Flow* | 25.1 | 20.3 | 23.9 |
($Millions) | 4Q’10 | 4Q’09 | %Change | |||
Gross Profit | 15.9 | 14.7 | 8.0 | |||
EBITDA ex. non-cash items* | 12.5 | 10.2 | 22.8 | |||
Free Cash Flow* | 3.0 | 3.7 | (18.8) |
* See attached tables for a reconciliation of net income to EBITDA excluding non-cash items and cash from operating activities to free cash flow
The Gas Company’s financial results for 2010 reflect the full-year benefit of a utility rate increase implemented in early June 2009. The volume of utility gas products sold during the year was relatively flat compared with 2009.
The non-utility portion of the business benefited from effective margin management and a 1.7% increase in the volume of gas products sold in 2010 compared with 2009.
The Gas Company had $160.0 million of debt outstanding at December 31, 2010. A portion of the cash from operating activities produced during the year was used to repay the $19.0 million balance on the business’ revolving debt facility. The facility can be re-drawn at any time and used for general corporate purposes.
The weighted average cost of the debt, including the cost of interest rate hedges, was 5.3%. Per the business’ debt agreement, the ratio of 12-month forward looking and 12-month backward looking adjusted EBITDA to interest cannot be less than 3.5x. The ratios at December 31, 2010 were 7.7x forward and 7.4x backward. The Gas Company’s primary debt facilities mature in June 2013.
District Energy
MIC’s District Energy business produces chilled water that it distributes via underground pipelines to buildings in downtown Chicago for use in air conditioning and process cooling. The business also operates a site-specific facility in Las Vegas, Nevada that supplies both cooling and heating services to a resort/casino complex, a condominium and a shopping mall. District Energy is a component of MIC’s consolidated results and the table and discussion below refers to 100% of District Energy, rather than MIC’s 50.01% interest.
($Millions) | 2010 | 2009 | %Change | |||
Gross Profit | 20.1 | 16.6 | 21.2 | |||
EBITDA ex. non-cash items* | 22.8 | 20.8 | 9.9 | |||
Free Cash Flow* | 14.5 | 13.1 | 11.3 |
($Millions) | 4Q’10 | 4Q’09 | %Change | |||
Gross Profit | 5.5 | 3.5 | 60.3 | |||
EBITDA ex. non-cash items* | 4.2 | 4.7 | (12.5) | |||
Free Cash Flow* | 1.8 | 2.7 | (33.0) |
* See attached tables for a reconciliation of net income (loss) to EBITDA excluding non-cash items and cash from operating activities to free cash flow
The increase in gross profit produced by District Energy in 2010 reflects the higher average temperatures in Chicago during the second and third quarters of the year compared with same periods in 2009. The higher temperatures increased the demand for cooling services during those periods. The result also reflects a net increase in the number of ton-hours of cooling under contract.
The results for District Energy include an increase to finance lease revenue of $2.5 million. The increase reflects a re-class of previously booked lease principal to lease interest. Lease principal is recorded in the statement of cash flows while lease interest is recorded in the statement of operations. The $2.5 million is excluded in reconciliation from net income to EBITDA excluding non-cash items so as to maintain comparability with previously reported results. See attached financial statements and related reconciliations.
MIC consolidates the results of the business in its financial statements, including the reconciliation of EBITDA, excluding non-cash items, and free cash flow. Proportionately combined free cash flow includes only MIC’s 50.01% interest in the business. District Energy is not a part of MIC’s consolidated federal income tax group.
District Energy had $170.0 million of debt outstanding at December 31, 2010. The weighted average cost of the debt, including the cost of interest rate hedges and letter of credit fees, was 5.5%. Per the business’ debt agreement, the ratio of funds from operations less interest expense to net debt during the preceding 12 months cannot be less than 6.0%. At December 31, 2010 the ratio was 8.8%. The business’ $150.0 million term loan debt facility and $20.0 million capital expenditure loan facility both mature in September of 2014.
Aviation-Related Business
Atlantic Aviation
Atlantic Aviation owns and operates a network of fixed-base operations (FBOs) at 66 airports in the U.S. FBOs primarily provide fuel, terminal services, and aircraft hangar services to owners and operators of private (general aviation) jet aircraft. The network is the largest of its type in the U.S. air transportation industry.
($Millions) | 2010 | 2009 | %Change | |||
Gross Profit | 291.5 | 287.0 | 1.6 | |||
EBITDA ex. non-cash items* | 117.5 | 106.5 | 10.3 | |||
Free Cash Flow* | 48.5 | 36.9 | 31.2 |
($Millions) | 4Q’10 | 4Q’09 | %Change | |||
Gross Profit | 73.5 | 71.8 | 2.4 | |||
EBITDA ex. non-cash items* | 29.1 | 26.7 | 9.0 | |||
Free Cash Flow* | 10.2 | 11.1 | (8.5) |
* See attached tables for a reconciliation of net (loss) to EBITDA excluding non-cash items and cash from operating activities to free cash flow
Atlantic Aviation reported an increase in gross profit and free cash flow in 2010 compared with 2009. The increase was the result of overall growth in the number of general aviation flight movements in the U.S. which led to a higher volume of fuel sold and, in certain instances, higher margins on those sales. A decrease in non-fuel gross profit (hangar rental, deicing and other services) offset a portion of the increase.
Free cash flow in the fourth quarter was lower than the prior comparable period due to an increase in maintenance capital expenditures. Such expenditures were higher in an effort to take advantage of certain tax incentives authorized by the federal government.
Normalizing for events that are unlikely to recur in any given year, e.g., the G-20 meeting in Pittsburgh in 2009 and the closure of the Rifle, Colorado airport in 2010, the volume of general aviation jet fuel sold by Atlantic Aviation increased by 5.8% in 2010. On the same basis, fuel margins were largely flat during 2010 and non-fuel gross profit would have declined by 1.1%.
The increase in free cash flow generated by Atlantic Aviation in 2010 compared with 2009 resulted from the improvement in operations and a reduction in cash interest paid. The free cash flow was used to repay $55.0 million of term loan principal and $5.5 million in related swap breakage costs.
Per the business’ debt agreement, the ratio of debt to EBITDA (adjusted, as defined in the agreement) could not exceed 8.0x in 2010. At December 31, 2010, the ratio was 6.9x. The maximum allowable leverage ratio steps down to 7.5x at the end of March 2011. Including additional principal payments of $14.5 million made since January 1, 2011, the ratio at December 31, 2010 would have been 6.8x.
Atlantic Aviation had $808.9 million of debt outstanding at December 31, 2010. The weighted average cost of the debt, including the cost of interest rate hedges, was 6.5%. The business’ debt facilities mature in October 2014.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, February 24, 2011 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 24, 2011 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 24, 2011 through March 10, 2011, at +1(706) 645-9291, Passcode: 40290016. An online archive of the webcast will be available on the Company’s website for one year following the call. MIC-G
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of three energy-related businesses including a gas production and distribution business in Hawaii, The Gas Company, a controlling interest in a District Energy business in Chicago, and a 50% indirect interest in a bulk liquid storage terminal business, International-Matex Tank Terminals. MIC also owns and operates an aviation-related airport services business, Atlantic Aviation. The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic.
Forward-Looking Statements
This filing contains forward-looking statements. MIC may, in some cases, use words such as "project”, "believe”, "anticipate”, "plan”, "expect”, "estimate”, "intend”, "should”, "would”, "could”, "potentially”, or "may” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this report are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MIC’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
“Macquarie Group” refers to the Macquarie Group of companies, which comprises Macquarie Group Limited and its worldwide subsidiaries and affiliates. Macquarie Infrastructure Company LLC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Infrastructure Company LLC.
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
($ in Thousands, Except Share Data) | ||||||
December 31,
2010 |
December 31,
2009 |
|||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 24,563 | $ | 27,455 | ||
Accounts receivable, less allowance for doubtful accounts |
||||||
47,845 | 47,256 | |||||
Inventories | 17,063 | 14,305 | ||||
Prepaid expenses | 6,321 | 6,688 | ||||
Deferred income taxes | 19,030 | 23,323 | ||||
Other | 10,605 | 10,839 | ||||
Assets of discontinued operations held for sale | - | 86,695 | ||||
Total current assets | 125,427 | 216,561 | ||||
Property, equipment, land and leasehold improvements, net | 563,451 | 580,087 | ||||
Restricted cash | 13,780 | 16,016 | ||||
Equipment lease receivables | 35,663 | 33,266 | ||||
Investment in unconsolidated business | 223,792 | 207,491 | ||||
Goodwill | 514,253 | 516,182 | ||||
Intangible assets, net | 705,862 | 751,081 | ||||
Deferred financing costs, net of accumulated amortization | 12,927 | 17,088 | ||||
Other | 1,587 | 1,449 | ||||
Total assets | $ | 2,196,742 | $ | 2,339,221 | ||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Current liabilities: | ||||||
Due to manager - related party | $ | 3,282 | $ | 1,977 | ||
Accounts payable | 39,768 | 44,575 | ||||
Accrued expenses | 19,315 | 17,432 | ||||
Current portion of notes payable and capital leases | 1,075 | 235 | ||||
Current portion of long-term debt | 49,325 | 45,900 | ||||
Fair value of derivative instruments | 43,496 | 49,573 | ||||
Customer deposits | 4,635 | 5,617 | ||||
Other | 10,390 | 9,338 | ||||
Liabilities of discontinued operations held for sale | - | 220,549 | ||||
Total current liabilities | 171,286 | 395,196 | ||||
Notes payable and capital leases, net of current portion | 420 | 1,498 | ||||
Long-term debt, net of current portion | 1,089,559 | 1,166,379 | ||||
Deferred income taxes | 156,328 | 107,840 | ||||
Fair value of derivative instruments | 51,729 | 54,794 | ||||
Other | 40,725 | 38,746 | ||||
Total liabilities | 1,510,047 | 1,764,453 | ||||
Commitments and contingencies | - | - | ||||
Members’ equity: | ||||||
LLC interests, no par value; 500,000,000 authorized; 45,715,448 LLC | ||||||
interests issued and outstanding at December 31, 2010 and
45,292,913 LLC |
964,430 | 959,897 | ||||
Additional paid in capital | 21,956 | 21,956 | ||||
Accumulated other comprehensive loss | (25,812) | (43,232) | ||||
Accumulated deficit | (269,425) | (360,095) | ||||
Total members’ equity | 691,149 | 578,526 | ||||
Noncontrolling interests | (4,454) | (3,758) | ||||
Total equity | 686,695 | 574,768 | ||||
Total liabilities and equity | $ | 2,196,742 | $ | 2,339,221 |
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
($ in Thousands, Except Share and Per Share Data) | ||||||||||
Year Ended
December 31, 2010 |
Year Ended
December 31, 2009(1) |
Year Ended
December 31, 2008(1) |
||||||||
Revenue | ||||||||||
Revenue from product sales | $ | 514,344 | $ | 394,200 | $ | 586,054 | ||||
Revenue from product sales - utility | 113,752 | 95,769 | 121,770 | |||||||
Service revenue | 204,852 | 215,349 | 264,851 | |||||||
Financing and equipment lease income | 7,843 | 4,758 | 4,686 | |||||||
Total revenue | 840,791 | 710,076 | 977,361 | |||||||
Costs and expenses | ||||||||||
Cost of product sales | 326,734 | 233,376 | 408,690 | |||||||
Cost of product sales - utility | 90,542 | 73,907 | 105,329 | |||||||
Cost of services | 53,088 | 46,317 | 63,850 | |||||||
Selling, general and administrative | 201,787 | 209,783 | 227,288 | |||||||
Fees to manager - related party | 10,051 | 4,846 | 12,568 | |||||||
Goodwill impairment | - | 71,200 | 52,000 | |||||||
Depreciation | 29,721 | 36,813 | 40,140 | |||||||
Amortization of intangibles | 34,898 | 60,892 | 61,874 | |||||||
Loss on disposal of assets | 17,869 | - | - | |||||||
Total operating expenses | 764,690 | 737,134 | 971,739 | |||||||
Operating income (loss) | 76,101 | (27,058) | 5,622 | |||||||
Other income (expense) | ||||||||||
Interest income | 29 | 119 | 1,090 | |||||||
Interest expense(2) | (106,834) | (95,456) | (88,652) | |||||||
Equity in earnings and amortization charges of investee | 31,301 | 22,561 | 1,324 | |||||||
Loss on derivative instruments | - | (25,238) | (2,843) | |||||||
Other income (expense), net | 712 | 570 | (198) | |||||||
Net income (loss) from continuing operations before income taxes |
1,309 | (124,502) | (83,657) | |||||||
Benefit for income taxes | 8,697 | 15,818 | 14,061 | |||||||
Net income (loss) from continuing operations | $ | 10,006 | $ | (108,684) | $ | (69,596) | ||||
Net income (loss) from discontinued operations, net of taxes | 81,323 | (21,860) | (110,045) | |||||||
Net income (loss) | $ | 91,329 | $ | (130,544) | $ | (179,641) | ||||
Less: net income (loss) attributable to noncontrolling interests | 659 | (1,377) | (1,168) | |||||||
Net income (loss) attributable to MIC LLC | $ | 90,670 | $ | (129,167) | $ | (178,473) | ||||
Basic income (loss) per share from continuing operations attributable | ||||||||||
to MIC LLC interest holders | $ | 0.21 | $ | (2.43) | $ | (1.56) | ||||
Basic income (loss) per share from discontinued operations attributable | ||||||||||
to MIC LLC interest holders | 1.78 | (0.44) | (2.41) | |||||||
Basic income (loss) per share attributable to MIC LLC | ||||||||||
interest holders | $ | 1.99 | $ | (2.87) | $ | (3.97) | ||||
Weighted average number of shares outstanding: basic | 45,549,803 | 45,020,085 | 44,944,326 | |||||||
Diluted income (loss) per share from continuing operations attributable | ||||||||||
to MIC LLC interest holders | $ | 0.21 | $ | (2.43) | $ | (1.56) | ||||
Diluted income (loss) per share from discontinued operations | ||||||||||
attributable to MIC LLC interest holders | 1.78 | (0.44) | (2.41) | |||||||
Diluted income (loss) per share attributable to MIC LLC interest holders | $ | 1.99 | $ | (2.87) | $ | (3.97) | ||||
Weighted average number of shares outstanding: diluted | 45,631,610 | 45,020,085 | 44,944,326 | |||||||
Cash distributions declared per share | $ | - | $ | - | $ | 2.125 | ||||
|
(1) Reclassified to conform to current period presentation.
(2) Interest expense includes non-cash losses on derivative instruments of $23.4 million and $4.3 million for the years ended December 31, 2010 and 2009, respectively.
MACQUARIE INFRASTRUCTURE COMPANY LLC | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
($ in Thousands) | |||||||||
Year Ended
December 31, 2010 |
Year Ended
December 31, 2009(1) |
Year Ended
December 31, 2008(1) |
|||||||
Operating activities | |||||||||
Net income (loss) | $ | 91,329 | $ | (130,544) | $ | (179,641) | |||
Adjustments to reconcile net income (loss) to net cash provided by |
|||||||||
Net (income) loss from discontinued operations before
noncontrolling |
(81,323) | 21,860 | 110,045 | ||||||
Non-cash goodwill impairment | - | 71,200 | 52,000 | ||||||
Depreciation and amortization of property and equipment | 36,276 | 42,899 | 45,953 | ||||||
Amortization of intangible assets | 34,898 | 60,892 | 61,874 | ||||||
Loss on disposal of assets | 17,869 | - | - | ||||||
Equity in earnings and amortization charges of investees | (31,301) | (22,561) | (1,324) | ||||||
Equity distributions from investees | 15,000 | 7,000 | 1,324 | ||||||
Amortization of debt financing costs | 4,347 | 5,121 | 4,762 | ||||||
Non-cash derivative loss | 23,410 | 29,540 | 2,843 | ||||||
Base management fees settled in LLC interests | 5,403 | 4,384 | - | ||||||
Equipment lease receivable, net | 2,761 | 2,752 | 2,460 | ||||||
Deferred rent | 413 | 183 | 183 | ||||||
Deferred taxes | (11,729) | (17,923) | (16,037) | ||||||
Other non-cash expenses, net | 1,817 | 2,115 | 4,115 | ||||||
Changes in other assets and liabilities, net of acquisitions: | |||||||||
Restricted cash | 50 | - | - | ||||||
Accounts receivable | (2,424) | 13,020 | 16,392 | ||||||
Inventories | (2,833) | 1,233 | 2,698 | ||||||
Prepaid expenses and other current assets | 453 | 2,944 | 6,840 | ||||||
Due to manager - related party | (15) | (3,438) | (2,216) | ||||||
Accounts payable and accrued expenses | (4,821) | (4,670) | (17,132) | ||||||
Income taxes payable | 1,051 | 535 | (1,108) | ||||||
Other, net | (2,076) | (3,566) | 1,548 | ||||||
Net cash provided by operating activities from continuing operations | 98,555 | 82,976 | 95,579 | ||||||
Investing activities | |||||||||
Acquisitions of businesses and investments, net of cash acquired | - | - | (41,804) | ||||||
Proceeds from sale of investment | - | 29,500 | 7,557 | ||||||
Purchases of property and equipment | (22,690) | (30,320) | (49,560) | ||||||
Investment in capital leased assets | (2,976) | - | - | ||||||
Return of investment in unconsolidated business | - | - | 26,676 | ||||||
Other | 892 | 304 | 415 | ||||||
Net cash used in investing activities from continuing operations | (24,774) | (516) | (56,716) | ||||||
Financing activities | |||||||||
Proceeds from long-term debt | 141 | 10,000 | 5,000 | ||||||
Net proceeds (payments) on line of credit facilities | 500 | (45,400) | 96,150 | ||||||
Offering and equity raise costs paid | - | - | (65) | ||||||
Distributions paid to holders of LLC interests | - | - | (95,509) | ||||||
Contributions received from noncontrolling interests | 300 | - | - | ||||||
Distributions paid to noncontrolling interests | (5,346) | (583) | (481) | ||||||
Payment of long-term debt | (74,036) | (81,621) | - | ||||||
Debt financing costs paid | (186) | - | (1,879) | ||||||
Change in restricted cash | 2,236 | (33) | (865) | ||||||
Payment of notes and capital lease obligations | (137) | (181) | (653) | ||||||
Net cash (used in) provided by financing activities from continuing operations |
|
(76,528) |
|
(117,818) |
|
1,698 |
|||
Net change in cash and cash equivalents from continuing operations | (2,747) | (35,358) | 40,561 | ||||||
Cash flows (used in) provided by discontinued operations: | |||||||||
Net cash used in operating activities | (12,703) | (4,732) | (1,904) | ||||||
Net cash provided by (used in) investing activities | 134,356 | (445) | (26,684) | ||||||
Net cash (used in) provided by financing activities | (124,183) | 2,144 | (1,215) | ||||||
Cash used in discontinued operations(2) | (2,530) | (3,033) | (29,803) | ||||||
Change in cash of discontinued operations held for sale(2) | 2,385 | (208) | 2,459 | ||||||
Net change in cash and cash equivalent | (2,892) | (38,599) | 13,217 | ||||||
Cash and cash equivalents, beginning of period | 27,455 | 66,054 | 52,837 | ||||||
Cash and cash equivalents, end of period- continuing operations | $ | 24,563 | $ | 27,455 | $ | 66,054 | |||
Supplemental disclosures of cash flow information for continuing operations: |
|||||||||
Non-cash investing and financing activities: | |||||||||
Accrued purchases of property and equipment | $ | 431 | $ | 1,277 | $ | 883 | |||
Acquisition of equipment through capital leases | $ | 139 | $ | - | $ | - | |||
Issuance of LLC interests to manager for base management fees | $ | 4,083 | $ | 2,490 | $ | - | |||
Issuance of LLC interests to independent directors | $ | 450 | $ | 450 | $ | 450 | |||
Taxes paid | $ | 1,655 | $ | 1,231 | $ | 3,048 | |||
Interest paid | $ | 78,718 | $ | 87,308 | $ | 84,235 |
(1) Reclassified to conform to current period presentation.
(2) 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.
CONSOLIDATED STATEMENT OF OPERATIONS – MD&A |
||||||||||||||||||||
Quarter Ended
December 31, |
Change
Favorable/(Unfavorable) |
Year Ended
December 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||
2010 | 2009(1) | $ | % | 2010 | 2009(1) | $ | % | |||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
Revenue from product sales | $ | 139,932 | $ | 112,561 | 27,371 | 24.3 | $ | 514,344 | $ | 394,200 | 120,144 | 30.5 | ||||||||
Revenue from product sales - utility | 30,235 | 28,132 | 2,103 | 7.5 | 113,752 | 95,769 | 17,983 | 18.8 | ||||||||||||
Service revenue | 47,254 | 51,746 | (4,492) | (8.7) | 204,852 | 215,349 | (10,497) | (4.9) | ||||||||||||
Financing and equipment lease income | 4,076 | 1,171 | 2,905 | NM | 7,843 | 4,758 | 3,085 | 64.8 | ||||||||||||
Total revenue | 221,497 | 193,610 | 27,887 | 14.4 | 840,791 | 710,076 | 130,715 | 18.4 | ||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of product sales | 90,950 | 71,042 | (19,908) | (28.0) | 326,734 | 233,376 | (93,358) | (40.0) | ||||||||||||
Cost of product sales - utility | 23,611 | 21,883 | (1,728) | (7.9) | 90,542 | 73,907 | (16,635) | (22.5) | ||||||||||||
Cost of services | 12,000 | 10,717 | (1,283) | (12.0) | 53,088 | 46,317 | (6,771) | (14.6) | ||||||||||||
Gross profit | 94,936 | 89,968 | 4,968 | 5.5 | 370,427 | 356,476 | 13,951 | 3.9 | ||||||||||||
Selling, general and administrative | 51,045 | 54,861 | 3,816 | 7.0 | 201,787 | 209,783 | 7,996 | 3.8 | ||||||||||||
Fees to manager - related party | 3,214 | 1,894 | (1,320) | (69.7) | 10,051 | 4,846 | (5,205) | (107.4) | ||||||||||||
Goodwill impairment | - | - | - | - | - | 71,200 | 71,200 | NM | ||||||||||||
Depreciation | 7,824 | 7,216 | (608) | (8.4) | 29,721 | 36,813 | 7,092 | 19.3 | ||||||||||||
Amortization of intangibles | 8,744 | 8,969 | 225 | 2.5 | 34,898 | 60,892 | 25,994 | 42.7 | ||||||||||||
Loss on disposal of assets | 17,869 | - | (17,869) | NM | 17,869 | - | (17,869) | NM | ||||||||||||
Total operating expenses | 88,696 | 72,940 | (15,756) | (21.6) | 294,326 | 383,534 | 89,208 | 23.3 | ||||||||||||
Operating income (loss) | 6,240 | 17,028 | (10,788) | (63.4) | 76,101 | (27,058) | 103,159 | NM | ||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest income | 7 | 11 | (4) | (36.4) | 29 | 119 | (90) | (75.6) | ||||||||||||
Interest expense(2) | (8,329) | (20,479) | 12,150 | 59.3 | (106,834) | (95,456) | (11,378) | (11.9) | ||||||||||||
Equity in earnings and amortization charges of | ||||||||||||||||||||
investees | 12,130 | 5,906 | 6,224 | 105.4 | 31,301 | 22,561 | 8,740 | 38.7 | ||||||||||||
Loss on derivative instruments | - | - | - | - | - | (25,238) | 25,238 | NM | ||||||||||||
Other (expense) income, net | (109) | (576) | 467 | 81.1 | 712 | 570 | 142 | 24.9 | ||||||||||||
Net income (loss) from continuing operations |
9,939 | 1,890 | 8,049 | NM | 1,309 | (124,502) | 125,811 | 101.1 | ||||||||||||
(Provision) benefit for income taxes | (3,844) | (20,585) | 16,741 | 81.3 | 8,697 | 15,818 | (7,121) | (45.0) | ||||||||||||
Net income (loss) income from continuing operations | $ | 6,095 | $ | (18,695) | 24,790 | 132.6 | $ | 10,006 | $ | (108,684) | 118,690 | 109.2 | ||||||||
Net income (loss) from discontinued operations, |
124 | (10,597) | 10,721 | 101.2 | 81,323 | (21,860) | 103,183 | NM | ||||||||||||
Net income (loss) | $ | 6,219 | $ | (29,292) | 35,511 | 121.2 | $ | 91,329 | $ | (130,544) | 221,873 | 170.0 | ||||||||
Less: net income (loss) attributable to noncontrolling |
1,976 | (457) | (2,433) | NM | 659 | (1,377) | (2,036) | (147.9) | ||||||||||||
Net income (loss) attributable to MIC LLC | $ | 4,243 | $ | (28,835) | 33,078 | 114.7 | $ | 90,670 | $ | (129,167) | 219,837 | 170.2 |
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Interest expense includes non-cash gains on derivative instruments of $12.1 million and non-cash losses of $23.4 million for the quarter and year ended December 31, 2010, respectively, and non-cash gains of $495,000 and non-cash losses of $4.3 million for the quarter and year ended December 31, 2009, respectively.
MACQUARIE INFRASTRUCTURE COMPANY LLC
|
||||||||||||||||||||
Quarter Ended
December 31, |
Change
Favorable/(Unfavorable) |
Year Ended
December 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||
2010 | 2009(1) | $ | % | 2010 | 2009(1) | $ | % | |||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||
Net income (loss) attributable to MIC LLC from continuing |
$ | 4,119 | $ | (18,666) | $ | 9,483 | $ | (109,170) | ||||||||||||
Interest expense, net(3) | 8,322 | 20,468 | 106,805 | 95,337 | ||||||||||||||||
Provision (benefit) for income taxes | 3,844 | 20,585 | (8,697) | (15,818) | ||||||||||||||||
Depreciation(4) | 7,824 | 7,216 | 29,721 | 36,813 | ||||||||||||||||
Depreciation - cost of services(4) | 1,645 | 1,580 | 6,555 | 6,086 | ||||||||||||||||
Amortization of intangibles(5) | 8,744 | 8,969 | 34,898 | 60,892 | ||||||||||||||||
Goodwill impairment | - | - | - | 71,200 | ||||||||||||||||
Loss on disposal of assets | 17,869 | - | 17,869 | - | ||||||||||||||||
Loss on derivative instruments | - | - | - | 25,238 | ||||||||||||||||
Equity in earnings and amortization charges of investees(6) | (12,130) | (5,906) | (16,301) | (15,561) | ||||||||||||||||
Base management fees settled in LLC interests | 3,214 | 1,894 | 5,403 | 4,384 | ||||||||||||||||
Other non-cash expense, net | 1,081 | 1,715 | 2,753 | 2,784 | ||||||||||||||||
EBITDA excluding non-cash items from continuing operations | $ | 44,532 | $ | 37,855 | 6,677 | 17.6 | $ | 188,489 | $ | 162,185 | 26,304 | 16.2 | ||||||||
EBITDA excluding non-cash items from continuing operations | $ | 44,532 | $ | 37,855 | $ | 188,489 | $ | 162,185 | ||||||||||||
Interest expense, net(3) | (8,322) | (20,468) | (106,805) | (95,337) | ||||||||||||||||
Interest rate swap breakage fees(3) | (839) | (914) | (5,528) | (8,776) | ||||||||||||||||
Non-cash derivative (gains) losses recorded in interest |
(11,248) | 419 | 28,938 | 13,078 | ||||||||||||||||
Amortization of debt financing costs(3) | 1,048 | 1,297 | 4,347 | 5,121 | ||||||||||||||||
Equipment lease receivables, net | 559 | 694 | 2,761 | 2,752 | ||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (1,888) | (1,235) | (3,032) | (2,105) | ||||||||||||||||
Changes in working capital | (5,269) | 1,184 | (10,615) | 6,058 | ||||||||||||||||
Cash provided by operating activities | 18,573 | 18,832 | 98,555 | 82,976 | ||||||||||||||||
Changes in working capital | 5,269 | (1,184) | 10,615 | (6,058) | ||||||||||||||||
Maintenance capital expenditures | (7,707) | (3,469) | (14,509) | (9,453) | ||||||||||||||||
Free cash flow from continuing operations | $ | 16,135 | $ | 14,179 | 1,956 | 13.8 | $ | 94,661 | $ | 67,465 | 27,196 | 40.3 | ||||||||
|
(1) Reclassified to conform to current period presentation.
(2) Net income (loss) attributable to MIC LLC from continuing operations excludes net income attributable to noncontrolling interests of $2.0 million and $523,000 for the quarter and year ended December 31, 2010, respectively, and net loss attributable to noncontrolling interests of $29,000 and net income attributable to noncontrolling interests of $486,000 for quarter and year ended December 31, 2009, respectively.
(3) Interest expense, net, includes non-cash (gains) losses on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
(4) 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 $1.7 million for each quarter and $6.9 million for each year 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) Amortization of intangibles does not include acquisition-related step-up amortization expense of $283,000 for each quarter and $1.1 million for each year related to intangible assets in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated statements of operations.
(6) Equity in earnings and amortization charges of investees in the above table includes our 50% share of IMTT's earnings, offset by distributions we received only up to our share of the earnings recorded.
MACQUARIE INFRASTRUCTURE COMPANY LLC
|
||||||||||||||||
IMTT | ||||||||||||||||
Quarter Ended
December 31, |
Change
Favorable/(Unfavorable) |
Year Ended
December 31, |
|
Change
Favorable/(Unfavorable) |
||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||
Revenue | ||||||||||||||||
Terminal revenue | 94,083 | 87,856 | 6,227 | 7.1 | 372,205 | 330,380 | 41,825 | 12.7 | ||||||||
Environmental response revenue | 15,626 | 4,374 | 11,252 | NM | 184,979 | 15,795 | 169,184 | NM | ||||||||
Total revenue | 109,709 | 92,230 | 17,479 | 19.0 | 557,184 | 346,175 | 211,009 | 61.0 | ||||||||
Costs and expenses | ||||||||||||||||
Terminal operating costs | 43,867 | 41,975 | (1,892) | (4.5) | 168,713 | 156,552 | (12,161) | (7.8) | ||||||||
Environmental response operating costs | 7,738 | 3,033 | (4,705) | (155.1) | 115,937 | 14,792 | (101,145) | NM | ||||||||
Total operating costs | 51,605 | 45,008 | (6,597) | (14.7) | 284,650 | 171,344 | (113,306) | (66.1) | ||||||||
Terminal gross profit | 50,216 | 45,881 | 4,335 | 9.4 | 203,492 | 173,828 | 29,664 | 17.1 | ||||||||
Environmental response gross profit | 7,888 | 1,341 | 6,547 | NM | 69,042 | 1,003 | 68,039 | NM | ||||||||
Gross profit | 58,104 | 47,222 | 10,882 | 23.0 | 272,534 | 174,831 | 97,703 | 55.9 | ||||||||
General and administrative expenses | 7,323 | 8,217 | 894 | 10.9 | 37,125 | 27,437 | (9,688) | (35.3) | ||||||||
Depreciation and amortization | 15,141 | 16,263 | 1,122 | 6.9 | 61,277 | 55,998 | (5,279) | (9.4) | ||||||||
Operating income | 35,640 | 22,742 | 12,898 | 56.7 | 174,132 | 91,396 | 82,736 | 90.5 | ||||||||
Interest income (expense), net(2) | 8,150 | 2,712 | 5,438 | NM | (50,335) | (2,130) | (48,205) | NM | ||||||||
Other income | 372 | 350 | 22 | 6.3 | 1,953 | 522 | 1,431 | NM | ||||||||
Unrealized gains on derivative instruments | - | - | - | - | - | 3,306 | (3,306) | NM | ||||||||
Provision for income taxes | (17,619) | (11,807) | (5,812) | (49.2) | (53,521) | (38,842) | (14,679) | (37.8) | ||||||||
Noncontrolling interests | 82 | 180 | (98) | (54.4) | (165) | 332 | (497) | (149.7) | ||||||||
Net income | 26,625 | 14,177 | 12,448 | 87.8 | 72,064 | 54,584 | 17,480 | 32.0 | ||||||||
Reconciliation of net income to EBITDA excluding non-cash items: |
||||||||||||||||
Net income | 26,625 | 14,177 | 72,064 | 54,584 | ||||||||||||
Interest (income) expense, net(2) | (8,150) | (2,712) | 50,335 | 2,130 | ||||||||||||
Provision for income taxes | 17,619 | 11,807 | 53,521 | 38,842 | ||||||||||||
Depreciation and amortization | 15,141 | 16,263 | 61,277 | 55,998 | ||||||||||||
Unrealized gains on derivative instruments | - | - | - | (3,306) | ||||||||||||
Other non-cash income | (88) | (299) | (361) | (590) | ||||||||||||
EBITDA excluding non-cash items | 51,147 | 39,236 | 11,911 | 30.4 | 236,836 | 147,658 | 89,178 | 60.4 | ||||||||
EBITDA excluding non-cash items | 51,147 | 39,236 | 236,836 | 147,658 | ||||||||||||
Interest income (expense), net(2) | 8,150 | 2,712 | (50,335) | (2,130) | ||||||||||||
Non-cash derivative (gains) losses recorded in interest expense(2) | (17,441) | (10,232) | 15,653 | (27,380) | ||||||||||||
Amortization of debt financing costs(2) | 683 | 190 | 2,011 | 543 | ||||||||||||
(Provision) benefit for income taxes, net of changes in deferred taxes | (1,702) | 974 | (12,514) | (1,593) | ||||||||||||
Changes in working capital | 24,229 | 7,831 | 4,536 | 16,284 | ||||||||||||
Cash provided by operating activities | 65,066 | 40,711 | 196,187 | 133,382 | ||||||||||||
Changes in working capital | (24,229) | (7,831) | (4,536) | (16,284) | ||||||||||||
Maintenance capital expenditures | (15,826) | (13,113) | (44,995) | (39,977) | ||||||||||||
Free cash flow | 25,011 | 19,767 | 5,244 | 26.5 | 146,656 | 77,121 | 69,535 | 90.2 | ||||||||
|
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.
THE GAS COMPANY |
||||||||||||||||
|
||||||||||||||||
Quarter Ended
December 31, |
Change
Favorable/(Unfavorable) |
Year Ended
December 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||
Contribution margin | ||||||||||||||||
Revenue - utility | 30,235 | 28,132 | 2,103 | 7.5 | 113,752 | 95,769 | 17,983 | 18.8 | ||||||||
Cost of revenue - utility | 20,713 | 18,362 | (2,351) | (12.8) | 76,891 | 60,227 | (16,664) | (27.7) | ||||||||
Contribution margin - utility | 9,522 | 9,770 | (248) | (2.5) | 36,861 | 35,542 | 1,319 | 3.7 | ||||||||
Revenue - non-utility | 24,095 | 21,452 | 2,643 | 12.3 | 96,855 | 79,597 | 17,258 | 21.7 | ||||||||
Cost of revenue - non-utility | 11,872 | 10,011 | (1,861) | (18.6) | 48,896 | 36,580 | (12,316) | (33.7) | ||||||||
Contribution margin - non-utility | 12,223 | 11,441 | 782 | 6.8 | 47,959 | 43,017 | 4,942 | 11.5 | ||||||||
Total contribution margin | 21,745 | 21,211 | 534 | 2.5 | 84,820 | 78,559 | 6,261 | 8.0 | ||||||||
Production | 1,599 | 1,693 | 94 | 5.6 | 6,725 | 6,471 | (254) | (3.9) | ||||||||
Transmission and distribution | 4,219 | 4,777 | 558 | 11.7 | 19,269 | 19,152 | (117) | (0.6) | ||||||||
Gross profit | 15,927 | 14,741 | 1,186 | 8.0 | 58,826 | 52,936 | 5,890 | 11.1 | ||||||||
Selling, general and administrative expenses | 4,127 | 4,663 | 536 | 11.5 | 16,684 | 16,720 | 36 | 0.2 | ||||||||
Depreciation and amortization | 1,723 | 1,694 | (29) | (1.7) | 6,649 | 6,829 | 180 | 2.6 | ||||||||
Operating income | 10,077 | 8,384 | 1,693 | 20.2 | 35,493 | 29,387 | 6,106 | 20.8 | ||||||||
Interest expense, net(2) | (725) | (2,476) | 1,751 | 70.7 | (16,505) | (9,250) | (7,255) | (78.4) | ||||||||
Other expense | (80) | (139) | 59 | 42.4 | (90) | (355) | 265 | 74.6 | ||||||||
Unrealized losses on derivative instruments | - | - | - | - | - | (327) | 327 | NM | ||||||||
Provision for income taxes | (3,631) | (2,260) | (1,371) | (60.7) | (7,400) | (7,619) | 219 | 2.9 | ||||||||
Net income(3) | 5,641 | 3,509 | 2,132 | 60.8 | 11,498 | 11,836 | (338) | (2.9) | ||||||||
Reconciliation of net income to EBITDA excluding non-cash items: |
||||||||||||||||
Net income(3) | 5,641 | 3,509 | 11,498 | 11,836 | ||||||||||||
Interest expense, net(2) | 725 | 2,476 | 16,505 | 9,250 | ||||||||||||
Provision for income taxes | 3,631 | 2,260 | 7,400 | 7,619 | ||||||||||||
Depreciation and amortization | 1,723 | 1,694 | 6,649 | 6,829 | ||||||||||||
Unrealized losses on derivative instruments | - | - | - | 327 | ||||||||||||
Other non-cash expenses | 785 | 246 | 2,384 | 1,771 | ||||||||||||
EBITDA excluding non-cash items | 12,505 | 10,185 | 2,320 | 22.8 | 44,436 | 37,632 | 6,804 | 18.1 | ||||||||
EBITDA excluding non-cash items | 12,505 | 10,185 | 44,436 | 37,632 | ||||||||||||
Interest expense, net(2) | (725) | (2,476) | (16,505) | (9,250) | ||||||||||||
Non-cash derivative (gains) losses recorded in interest expense(2) | (1,611) | 244 | 7,334 | 309 | ||||||||||||
Amortization of debt financing costs(2) | 119 | 120 | 478 | 478 | ||||||||||||
Provision for income taxes, net of changes in deferred taxes | (3,057) | (2,239) | (4,333) | (4,936) | ||||||||||||
Changes in working capital | (759) | 3,249 | (2,079) | 1,327 | ||||||||||||
Cash provided by operating activities | 6,472 | 9,083 | 29,331 | 25,560 | ||||||||||||
Changes in working capital | 759 | (3,249) | 2,079 | (1,327) | ||||||||||||
Maintenance capital expenditures | (4,267) | (2,182) | (6,275) | (3,939) | ||||||||||||
Free cash flow | 2,964 | 3,652 | (688) | (18.8) | 25,135 | 20,294 | 4,841 | 23.9 | ||||||||
|
||||||||||||||||
|
NM - Not meaningful
(1) Reclassified to conform to current period presentation. For the quarter and year ended December 31, 2010, payroll taxes and certain employee welfare and benefit costs that were previously recorded in selling, general and administrative costs were reclassified to production, transmission and distribution and other expense where the costs were incurred. Accordingly, the quarter and year ended December 31, 2009 were restated to reflect this change.
(2) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.
(3) Corporate allocation expense, other intercompany fees and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.
DISTRICT ENERGY |
||||||||||||||||
Quarter Ended
December 31, |
Change Favorable/(Unfavorable) |
Year Ended
December 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||
Cooling capacity revenue | 5,327 | 5,199 | 128 | 2.5 | 21,162 | 20,430 | 732 | 3.6 | ||||||||
Cooling consumption revenue | 2,883 | 3,106 | (223) | (7.2) | 24,386 | 20,236 | 4,150 | 20.5 | ||||||||
Other revenue | 881 | 806 | 75 | 9.3 | 3,371 | 3,137 | 234 | 7.5 | ||||||||
Finance lease revenue | 4,076 | 1,171 | 2,905 | NM | 7,843 | 4,758 | 3,085 | 64.8 | ||||||||
Total revenue | 13,167 | 10,282 | 2,885 | 28.1 | 56,762 | 48,561 | 8,201 | 16.9 | ||||||||
Direct expenses — electricity | 2,154 | 2,253 | 99 | 4.4 | 16,343 | 13,356 | (2,987) | (22.4) | ||||||||
Direct expenses — other(2) | 5,471 | 4,572 | (899) | (19.7) | 20,349 | 18,647 | (1,702) | (9.1) | ||||||||
Direct expenses — total | 7,625 | 6,825 | (800) | (11.7) | 36,692 | 32,003 | (4,689) | (14.7) | ||||||||
Gross profit | 5,542 | 3,457 | 2,085 | 60.3 | 20,070 | 16,558 | 3,512 | 21.2 | ||||||||
Selling, general and administrative expenses | 867 | 1,356 | 489 | 36.1 | 3,217 | 3,407 | 190 | 5.6 | ||||||||
Amortization of intangibles | 345 | 345 | - | - | 1,368 | 1,368 | - | - | ||||||||
Operating income | 4,330 | 1,756 | 2,574 | 146.6 | 15,485 | 11,783 | 3,702 | 31.4 | ||||||||
Interest income (expense), net(3) | 195 | (2,145) | 2,340 | 109.1 | (20,671) | (8,995) | (11,676) | (129.8) | ||||||||
Other income | 268 | 694 | (426) | (61.4) | 1,804 | 1,235 | 569 | 46.1 | ||||||||
Unrealized losses on derivative instruments | - | - | - | - | - | (1,378) | 1,378 | NM | ||||||||
(Provision) benefit for income taxes | (1,620) | (52) | (1,568) | NM | 1,844 | (773) | 2,617 | NM | ||||||||
Noncontrolling interests | (694) | (175) | (519) | NM | (1,284) | (690) | (594) | (86.1) | ||||||||
Net income (loss)(4) | 2,479 | 78 | 2,401 | NM | (2,822) | 1,182 | (4,004) | NM | ||||||||
Reconciliation of net income (loss) to EBITDA excluding non-cash items: |
||||||||||||||||
Net income (loss)(4) | 2,479 | 78 | (2,822) | 1,182 | ||||||||||||
Interest (income) expense, net(3) | (195) | 2,145 | 20,671 | 8,995 | ||||||||||||
Provision (benefit) for income taxes | 1,620 | 52 | (1,844) | 773 | ||||||||||||
Depreciation(2) | 1,645 | 1,580 | 6,555 | 6,086 | ||||||||||||
Amortization of intangibles | 345 | 345 | 1,368 | 1,368 | ||||||||||||
Unrealized losses on derivative instruments | - | - | - | 1,378 | ||||||||||||
Other non-cash (income) expenses | (1,734) | 554 | (1,082) | 1,009 | ||||||||||||
EBITDA excluding non-cash items | 4,160 | 4,754 | (594) | (12.5) | 22,846 | 20,791 | 2,055 | 9.9 | ||||||||
EBITDA excluding non-cash items | 4,160 | 4,754 | 22,846 | 20,791 | ||||||||||||
Interest income (expense), net(3) | 195 | (2,145) | (20,671) | (8,995) | ||||||||||||
Non-cash derivative (gains) |
(2,870) | (419) | 10,136 | (1,158) | ||||||||||||
Amortization of debt financing costs(3) | 170 | 170 | 681 | 681 | ||||||||||||
Equipment lease receivable, net | 559 | 694 | 2,761 | 2,752 | ||||||||||||
Changes in working capital | 2,867 | 1,831 | (794) | 377 | ||||||||||||
Cash provided by operating activities | 5,081 | 4,885 | 14,959 | 14,448 | ||||||||||||
Changes in working capital | (2,867) | (1,831) | 794 | (377) | ||||||||||||
Maintenance capital expenditures | (394) | (337) | (1,207) | (1,001) | ||||||||||||
Free cash flow | 1,820 | 2,717 | (897) | (33.0) | 14,546 | 13,070 | 1,476 | 11.3 | ||||||||
|
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Includes depreciation expense of $1.6 million and $6.6 million for the quarter and year ended December 31, 2010, respectively, and $1.6 million and $6.1 million for the quarter and year ended December 31, 2009, respectively.
(3) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.
(4) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.
ATLANTIC AVIATION |
||||||||||||||||
Quarter Ended
December 31, |
Change
Favorable/(Unfavorable) |
Year Ended
December 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||
Revenue | ||||||||||||||||
Fuel revenue | 115,837 | 91,109 | 24,728 | 27.1 | 417,489 | 314,603 | 102,886 | 32.7 | ||||||||
Non-fuel revenue | 38,163 | 42,635 | (4,472) | (10.5) | 155,933 | 171,546 | (15,613) | (9.1) | ||||||||
Total revenue | 154,000 | 133,744 | 20,256 | 15.1 | 573,422 | 486,149 | 87,273 | 18.0 | ||||||||
Cost of revenue | ||||||||||||||||
Cost of revenue-fuel | 76,156 | 58,081 | (18,075) | (31.1) | 265,493 | 184,853 | (80,640) | (43.6) | ||||||||
Cost of revenue-non-fuel | 4,376 | 3,891 | (485) | (12.5) | 16,397 | 14,314 | (2,083) | (14.6) | ||||||||
Total cost of revenue | 80,532 | 61,972 | (18,560) | (29.9) | 281,890 | 199,167 | (82,723) | (41.5) | ||||||||
Fuel gross profit | 39,681 | 33,028 | 6,653 | 20.1 | 151,996 | 129,750 | 22,246 | 17.1 | ||||||||
Non-fuel gross profit | 33,787 | 38,744 | (4,957) | (12.8) | 139,536 | 157,232 | (17,696) | (11.3) | ||||||||
Gross profit | 73,468 | 71,772 | 1,696 | 2.4 | 291,532 | 286,982 | 4,550 | 1.6 | ||||||||
Selling, general and administrative expenses(2) | 44,764 | 45,215 | 451 | 1.0 | 174,526 | 179,949 | 5,423 | 3.0 | ||||||||
Goodwill impairment | - | - | - | - | - | 71,200 | 71,200 | NM | ||||||||
Depreciation and amortization | 14,500 | 14,146 | (354) | (2.5) | 56,602 | 89,508 | 32,906 | 36.8 | ||||||||
Loss on disposal of assets | 17,869 | - | (17,869) | NM | 17,869 | - | (17,869) | NM | ||||||||
Operating (loss) income | (3,665) | 12,411 | (16,076) | (129.5) | 42,535 | (53,675) | 96,210 | 179.2 | ||||||||
Interest expense, net(3) | (7,797) | (15,107) | 7,310 | 48.4 | (69,409) | (72,929) | 3,520 | 4.8 | ||||||||
Other expense | (272) | (1,129) | 857 | 75.9 | (917) | (1,451) | 534 | 36.8 | ||||||||
Unrealized losses on derivative instruments | - | - | - | - | - | (23,331) | 23,331 | NM | ||||||||
Benefit for income taxes | 3,026 | 1,542 | 1,484 | 96.2 | 9,497 | 61,009 | (51,512) | (84.4) | ||||||||
Net loss(4) | (8,708) | (2,283) | (6,425) | NM | (18,294) | (90,377) | 72,083 | 79.8 | ||||||||
Reconciliation of net loss to EBITDA excluding non-cash items: |
||||||||||||||||
Net loss(4) | (8,708) | (2,283) | (18,294) | (90,377) | ||||||||||||
Interest expense, net(3) | 7,797 | 15,107 | 69,409 | 72,929 | ||||||||||||
Benefit for income taxes | (3,026) | (1,542) | (9,497) | (61,009) | ||||||||||||
Depreciation and amortization | 14,500 | 14,146 | 56,602 | 89,508 | ||||||||||||
Goodwill impairment | - | - | - | 71,200 | ||||||||||||
Loss on disposal of assets | 17,869 | - | 17,869 | - | ||||||||||||
Unrealized losses on derivative instruments | - | - | - | 23,331 | ||||||||||||
Other non-cash expenses | 634 | 1,227 | 1,388 |
903 |
||||||||||||
EBITDA excluding non-cash items | 29,066 | 26,655 | 2,411 | 9.0 | 117,477 | 106,485 | 10,992 | 10.3 | ||||||||
EBITDA excluding non-cash items | 29,066 | 26,655 | 117,477 | 106,485 | ||||||||||||
Interest expense, net(3) | (7,797) | (15,107) | (69,409) | (72,929) | ||||||||||||
Interest rate swap breakage fees(3) | (839) | (914) | (5,528) | (8,776) | ||||||||||||
Non-cash derivative (gains) |
(6,764) | 590 | 11,473 | 13,722 | ||||||||||||
Amortization of debt financing costs(3) | 759 | 803 | 2,984 | 3,144 | ||||||||||||
(Provision) benefit for income |
(1,188) | 63 | (1,486) | (190) | ||||||||||||
Changes in working capital | (1,612) | (5,185) | (1,476) | 9,474 | ||||||||||||
Cash provided by operating activities | 11,625 | 6,905 | 54,035 | 50,930 | ||||||||||||
Changes in working capital | 1,612 | 5,185 | 1,476 | (9,474) | ||||||||||||
Maintenance capital expenditures | (3,046) | (950) | (7,027) | (4,513) | ||||||||||||
Free cash flow | 10,191 | 11,140 | (949) | (8.5) | 48,484 | 36,943 | 11,541 | 31.2 | ||||||||
|
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Includes a $2.4 million increase in the bad debt reserve in the first quarter of 2009 due to the deterioration of accounts receivable aging.
(3) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
(4) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.
MACQUARIE INFRASTRUCTURE COMPANY LLC |
|||||||||||||||||
|
|||||||||||||||||
For the Year Ended December 31, 2010 |
|||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | District Energy 100% | |||||||||
Net income (loss) attributable to MIC LLC from continuing operations |
36,032 | 11,498 | (1,411) | (18,294) | (12,200) | 15,625 | 72,064 | (2,822) | |||||||||
Interest expense, net(3) | 25,168 | 16,505 | 10,338 | 69,409 | 220 | 121,639 | 50,335 | 20,671 | |||||||||
Provision (benefit) for income taxes | 26,761 | 7,400 | (922) | (9,497) | (4,756) | 18,985 | 53,521 | (1,844) | |||||||||
Depreciation | 29,746 | 5,826 | 3,278 | 23,895 | - | 62,745 | 59,492 | 6,555 | |||||||||
Amortization of intangibles | 893 | 823 | 684 | 32,707 | - | 35,107 | 1,785 | 1,368 | |||||||||
Loss on disposal of assets | - | - | - | 17,869 | - | 17,869 | - | - | |||||||||
Base management fee paid in LLC interests | - | - | - | - | 5,403 | 5,403 | - | - | |||||||||
Other non-cash (income) expense | (181) | 2,384 | (541) | 1,388 | 63 | 3,113 | (361) | (1,082) | |||||||||
EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270) | 280,486 | 236,836 | 22,846 | |||||||||
EBITDA excluding non-cash items | 118,418 | 44,436 | 11,425 | 117,477 | (11,270) | 280,486 | 236,836 | 22,846 | |||||||||
Interest expense, net(3) | (25,168) | (16,505) | (10,338) | (69,409) | (220) | (121,639) | (50,335) | (20,671) | |||||||||
Interest rate swap breakage fees(3) | - | - | - | (5,528) | - | (5,528) | - | - | |||||||||
Non-cash derivative losses (gains) recorded in interest expense, net(3) | 7,827 | 7,334 | 5,069 | 11,473 | (5) | 31,698 | 15,653 | 10,136 | |||||||||
Amortization of deferred finance charges(3) | 1,006 | 478 | 341 | 2,984 | 204 | 5,012 | 2,011 | 681 | |||||||||
Equipment lease receivables, net | - | - | 1,381 | - | - | 1,381 | - | 2,761 | |||||||||
(Provision) benefit for income taxes, net of changes in deferred taxes | (6,257) | (4,333) | - | (1,486) | 2,787 | (9,289) | (12,514) | - | |||||||||
Changes in working capital | 2,268 | (2,079) | (397) | (1,476) | (6,266) | (7,950) | 4,536 | (794) | |||||||||
Cash provided by (used in) operating activities | 98,094 | 29,331 | 7,481 | 54,035 | (14,770) | 174,170 | 196,187 | 14,959 | |||||||||
Changes in working capital | (2,268) | 2,079 | 397 | 1,476 | 6,266 | 7,950 | (4,536) | 794 | |||||||||
Maintenance capital expenditures | (22,498) | (6,275) | (604) | (7,027) | - | (36,403) | (44,995) | (1,207) | |||||||||
Free cash flow | 73,328 | 25,135 | 7,274 | 48,484 | (8,504) | 145,717 | 146,656 | 14,546 | |||||||||
For the Year Ended December 31, 2009(1) |
|||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | District Energy 100% | |||||||||
Net income (loss) attributable to MIC LLC from continuing operations | 27,292 | 11,836 | 591 | (90,377) | (54,372) | (105,030) | 54,584 | 1,182 | |||||||||
Interest expense, net(3) | 1,065 | 9,250 | 4,498 | 72,929 | 4,163 | 91,905 | 2,130 | 8,995 | |||||||||
Provision (benefit) for income taxes | 19,421 | 7,619 | 387 | (61,009) | 36,799 | 3,217 | 38,842 | 773 | |||||||||
Depreciation | 27,043 | 5,991 | 3,044 | 30,822 | - | 66,900 | 54,086 | 6,086 | |||||||||
Amortization of intangibles | 956 | 838 | 684 | 58,686 | - | 61,164 | 1,912 | 1,368 | |||||||||
Goodwill impairment | - | - | - | 71,200 | - | 71,200 | - | - | |||||||||
(Gain) loss on derivative instruments | (1,653) | 327 | 689 | 23,331 | 202 | 22,896 | (3,306) | 1,378 | |||||||||
Base management fee paid in LLC interests | - | - | - | - | 4,384 | 4,384 | - | - | |||||||||
Other non-cash (income) expense | (295) | 1,771 | 505 | 903 | (899) | 1,985 | (590) | 1,009 | |||||||||
EBITDA excluding non-cash items | 73,829 | 37,632 | 10,398 | 106,485 | (9,723) | 218,621 | 147,658 | 20,791 | |||||||||
EBITDA excluding non-cash items | 73,829 | 37,632 | 10,398 | 106,485 | (9,723) | 218,621 | 147,658 | 20,791 | |||||||||
Interest expense, net(3) | (1,065) | (9,250) | (4,498) | (72,929) | (4,163) | (91,905) | (2,130) | (8,995) | |||||||||
Interest rate swap breakage fees(3) | - | - | - | (8,776) | - | (8,776) | - | - | |||||||||
Non-cash derivative (gains) losses recorded in interest expense, net(3) | (13,690) | 309 | (579) | 13,722 | 205 | (33) | (27,380) | (1,158) | |||||||||
Amortization of deferred finance charges(3) | 272 | 478 | 341 | 3,144 | 818 | 5,052 | 543 | 681 | |||||||||
Equipment lease receivables, net | - | - | 1,376 | - | - | 1,376 | - | 2,752 | |||||||||
(Provision) benefit for income taxes, net of changes in deferred taxes | (797) | (4,936) | - | (190) | 3,021 | (2,902) | (1,593) | - | |||||||||
Changes in working capital | 8,142 | 1,327 | 189 | 9,474 | (5,120) | 14,012 | 16,284 | 377 | |||||||||
Cash provided by (used in) operating activities | 66,691 | 25,560 | 7,226 | 50,930 | (14,962) | 135,445 | 133,382 | 14,448 | |||||||||
Changes in working capital | (8,142) | (1,327) | (189) | (9,474) | 5,120 | (14,012) | (16,284) | (377) | |||||||||
Maintenance capital expenditures | (19,989) | (3,939) | (501) | (4,513) | - | (28,941) | (39,977) | (1,001) | |||||||||
Free cash flow | 38,561 | 20,294 | 6,536 | 36,943 | (9,842) | 92,492 | 77,121 | 13,070 | |||||||||
|
|||||||||||||||||
(1) Reclassified to conform to current period presentation.
(2) 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.
(3) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
For the Quarter Ended December 31, 2010 |
||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | District Energy 100% | ||||||||||
Net income (loss) attributable to |
13,313 | 5,641 | 1,240 | (8,708) | (7,423) | 4,062 | 26,625 | 2,479 | ||||||||||
Interest (income) expense, net(3) | (4,075) | 725 | (98) | 7,797 | (5) | 4,344 | (8,150) | (195) | ||||||||||
Provision (benefit) for income taxes | 8,810 | 3,631 | 810 | (3,026) | 1,619 | 11,844 | 17,619 | 1,620 | ||||||||||
Depreciation | 7,335 | 1,517 | 823 | 6,307 | - | 15,981 | 14,669 | 1,645 | ||||||||||
Amortization of intangibles | 236 | 206 | 173 | 8,193 | - | 8,808 | 472 | 345 | ||||||||||
Loss on disposal of assets | - | - | - | 17,869 | - | 17,869 | - | - | ||||||||||
Base management fee paid in LLC interests | - | - | - | - | 3,214 | 3,214 | - | - | ||||||||||
Other non-cash (income) expense | (44) | 785 | (867) | 634 | 1,396 | 1,904 | (88) | (1,734) | ||||||||||
EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199) | 68,026 | 51,147 | 4,160 | ||||||||||
EBITDA excluding non-cash items | 25,574 | 12,505 | 2,080 | 29,066 | (1,199) | 68,026 | 51,147 | 4,160 | ||||||||||
Interest income (expense), net(3) | 4,075 | (725) | 98 | (7,797) | 5 | (4,344) | 8,150 | 195 | ||||||||||
Interest rate swap breakage fees(3) | - | - | - | (839) | - | (839) | - | - | ||||||||||
Non-cash derivative gains recorded |
(8,721) | (1,611) | (1,435) | (6,764) | (3) | (18,534) | (17,441) | (2,870) | ||||||||||
Amortization of deferred finance charges(3) | 342 | 119 | 85 | 759 | - | 1,305 | 683 | 170 | ||||||||||
Equipment lease receivables, net | - | - | 280 | - | - | 280 | - | 559 | ||||||||||
(Provision) benefit for income |
(851) | (3,057) | - | (1,188) | 2,357 | (2,739) | (1,702) | - | ||||||||||
Changes in working capital | 12,115 | (759) | 1,434 | (1,612) | (5,765) | 5,412 | 24,229 | 2,867 | ||||||||||
Cash provided by (used in) operating activities | 32,533 | 6,472 | 2,541 | 11,625 | (4,605) | 48,566 | 65,066 | 5,081 | ||||||||||
Changes in working capital | (12,115) | 759 | (1,434) | 1,612 | 5,765 | (5,412) | (24,229) | (2,867) | ||||||||||
Maintenance capital expenditures | (7,913) | (4,267) | (197) | (3,046) | - | (15,423) | (15,826) | (394) | ||||||||||
Free cash flow | 12,506 | 2,964 | 910 | 10,191 | 1,160 | 27,731 | 25,011 | 1,820 | ||||||||||
For the Quarter Ended December 31, 2009(1) |
||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company | District Energy 50.01% | Atlantic Aviation | MIC Corporate | Proportionately Combined(2) | IMTT 100% | District Energy 100% | ||||||||||
Net income (loss) attributable to MIC LLC from continuing operations |
7,089 | 3,509 | 39 | (2,283) | (25,876) | (17,522) | 14,177 | 78 | ||||||||||
Interest (income) expense, net(3) | (1,356) | 2,476 | 1,073 | 15,107 | 740 | 18,040 | (2,712) | 2,145 | ||||||||||
Provision (benefit) for income taxes | 5,904 | 2,260 | 26 | (1,542) | 19,815 | 26,463 | 11,807 | 52 | ||||||||||
Depreciation | 7,912 | 1,487 | 790 | 5,729 | - | 15,918 | 15,824 | 1,580 | ||||||||||
Amortization of intangibles | 220 | 207 | 173 | 8,417 | - | 9,016 | 439 | 345 | ||||||||||
Base management fee paid in LLC interests | - | - | - | - | 1,894 | 1,894 | - | - | ||||||||||
Other non-cash (income) expense | (150) | 246 | 277 | 1,227 | (312) | 1,289 | (299) | 554 | ||||||||||
EBITDA excluding non-cash items | 19,618 | 10,185 | 2,377 | 26,655 | (3,739) | 55,096 | 39,236 | 4,754 | ||||||||||
EBITDA excluding non-cash items | 19,618 | 10,185 | 2,377 | 26,655 | (3,739) | 55,096 | 39,236 | 4,754 | ||||||||||
Interest income (expense), net(3) | 1,356 | (2,476) | (1,073) | (15,107) | (740) | (18,040) | 2,712 | (2,145) | ||||||||||
Interest rate swap breakage fees(3) | - | - | - | (914) | - | (914) | - | - | ||||||||||
Non-cash derivative (gains) losses |
(5,116) | 244 | (210) | 590 | 4 | (4,488) | (10,232) | (419) | ||||||||||
Amortization of deferred finance charges(3) | 95 | 120 | 85 | 803 | 204 | 1,307 | 190 | 170 | ||||||||||
Equipment lease receivables, net | - | - | 347 | - | - | 347 | - | 694 | ||||||||||
Benefit (provision) for income |
487 | (2,239) | - | 63 | 941 | (748) | 974 | - | ||||||||||
Changes in working capital | 3,916 | 3,249 | 916 | (5,185) | 1,289 | 4,184 | 7,831 | 1,831 | ||||||||||
Cash provided by (used in) operating activities | 20,356 | 9,083 | 2,443 | 6,905 | (2,041) | 36,745 | 40,711 | 4,885 | ||||||||||
Changes in working capital | (3,916) | (3,249) | (916) | 5,185 | (1,289) | (4,184) | (7,831) | (1,831) | ||||||||||
Maintenance capital expenditures | (6,557) | (2,182) | (169) | (950) | - | (9,857) | (13,113) | (337) | ||||||||||
Free cash flow | 9,884 | 3,652 | 1,359 | 11,140 | (3,330) | 22,704 | 19,767 | 2,717 |
(1) Reclassified to conform to current period presentation.
(2) 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.
(3) Interest income (expense), net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
CONTACT:
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Jay A. Davis
Investor
Relations
Macquarie Infrastructure Company
(212) 231-1825
or
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enquiries
Paula Chirhart
Corporate Communications
Macquarie
Infrastructure Company
(212) 231-1310