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8-K - MACQUARIE INFRASTRUCTURE COMPANY LLC 8-K - Macquarie Infrastructure Corp | a50366675.htm |
Exhibit 99.1
Macquarie Infrastructure Company LLC Reports Second Quarter 2012 Financial Results, Increases Cash Dividend to $2.50 Per Year
• Quarterly cash dividend increased from $0.20 per share to $0.625 per share
• Proportionately combined free cash flow increases 27%
• Company sees improved outlook for full year 2012
NEW YORK--(BUSINESS WIRE)--August 1, 2012--Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for the second quarter of 2012 including an announcement that the Company’s Board approved an increase in its quarterly cash dividend from $0.20 per share for the first quarter of 2012 to $0.625 per share for the second quarter of 2012 or $2.50 per share annualized.
MIC’s businesses generated proportionately combined free cash flow of $43.5 million or $0.93 per share during the period, compared with $34.2 million or $0.75 per share in the second quarter of 2011. For the six months ended June 30, 2012 proportionately combined free cash flow increased 21.3% to $1.88 per share compared with $1.55 per share for the six months ended June 30, 2011.
The increase in the Company’s dividend was anticipated. Management had indicated in May that with the receipt of $110.6 million in distributions from its investment in International-Matex Tank Terminals the dividend would be increased to “at least $2.00” per share annually. The second quarter dividend will be payable on August 16, 2012 to shareholders of record on August 13, 2012.
“I am extremely pleased with our Board’s decision to increase the quarterly cash dividend to an annualized $2.50 per share,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC, “and I am pleased to be able to back that decision by increasing our guidance on proportionately combined free cash flow to approximately $3.70 per share for 2012.” The Company had previously indicated that proportionately combined free cash flow would be between $3.50 and $3.60 per share in calendar 2012.
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. See “Cash Generation” below for MIC’s definition of free cash flow and further information.
Consolidated Results for Second Quarter and Six Months
The Company reported net income, before tax, of $22.0 million for the second quarter of 2012 compared with a net loss of $4.4 million for the second quarter of 2011. For the six months ended June 30, 2012, MIC reported net income, before tax, of $42.7 million compared with net income of $13.4 million for the comparable period in 2011.
MIC’s consolidated revenue for the second quarter of 2012 increased 4.6% to $258.5 million compared with $247.2 million in the second quarter of 2011. Consolidated revenue increased 7.5% for the six-month period ended June 30, 2012 compared with the comparable period in 2011. The growth in revenue reflects the increased volume of products sold and higher energy costs, such as those for aviation fuel and gas products, which are passed through to customers of MIC’s businesses.
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 $97.7 million in the second quarter of 2012, an increase of 7.9% over the same period in 2011. For the six months ended June 30, 2012 the Company’s gross profit increased 6.6% compared with the comparable period in 2011.
Dispute with Co-Investor in IMTT
To date MIC has been unable to resolve fully a previously-disclosed dispute with its co-investor in IMTT regarding quarterly distributions and governance in accordance with the Shareholders’ Agreement between the parties. Distributions calculated in accordance with the Shareholders’ Agreement for the first and second quarters of 2012 were $45.3 million ($22.6 million per shareholder) and $55.3 million ($27.7 million per shareholder), respectively.
Representatives of MIC’s co-investor on the IMTT Board voted against making distributions per the Shareholders’ Agreement saying that they would prefer IMTT retain greater cash, cash equivalents and available committed and undrawn credit balances. Had IMTT paid the full amount of the distribution due for the first and second quarters of 2012, it would have had cash, cash equivalents and available committed and undrawn credit balances of $219.6 million and $241.4 million at the end of the first and second quarters of 2012, respectively. MIC believes these amounts are more than sufficient for the business.
On July 20, 2012 the IMTT Board unanimously approved the payment of a distribution in the amount of $17.8 million ($8.9 million per shareholder) for the first quarter of 2012. Payment of the distribution for the first quarter was made on July 24, 2012 with both parties reserving their rights to dispute the amount payable.
On July 31, 2012 the IMTT Board unanimously approved the payment of a distribution in the amount of $18.7 million ($9.3 million per shareholder) for the second quarter of 2012. Payment of the distribution for the second quarter is expected to be in August. Again, both parties reserved their rights to dispute the amount payable.
MIC believes that the failure of its co-investor’s representatives to approve the distributions as calculated is a breach of the Shareholders’ Agreement and violates the terms of the March 30, 2012 Arbitration Award that resulted in the payment of $110.6 million to each of the IMTT shareholders. The parties appear to be at an impasse with respect to determining the reserves required under the Shareholders’ Agreement and Arbitration Award. Accordingly, MIC may initiate an arbitration to collect the total amounts due for the first and second quarters of 2012 and to recover costs and damages.
Contingent upon the resolution of matters limiting the distribution of cash from IMTT (described above), and following the successful refinancing of Atlantic Aviation’s debt facilities prior to their maturity in October of 2014, assuming the continued stable performance of MIC’s businesses, and subject to prevailing economic conditions, our Board will consider increasing the amount of the quarterly cash dividend.
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 items reflected in the statement of operations.
MIC believes that EBITDA excluding non-cash items provides additional insight into the performance of its operating businesses, relative to each other and to similar businesses, without regard to capital structure, and their ability to service or reduce debt, fund capital expenditures and/or support distributions to the holding company.
MIC also reports free cash flow, as defined below, on both a consolidated and operating segment basis as a means of assessing the amount of cash generated by its businesses and as a supplement to other information provided in accordance with GAAP, and reconciles each to cash from operating activities. MIC believes that reporting free cash flow provides additional insight into its ability to deploy cash, as GAAP measures, such as net income (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.
MIC notes that free cash flow does not fully reflect its ability to freely deploy generated cash, as it does not reflect required principal payments on indebtedness, payments of dividends, potential growth capital expenditures and other fixed obligations or the other cash items excluded when calculating free cash flow. Free cash flow may be calculated differently by other companies which limits its usefulness as a comparative measure. Free cash flow, as defined by MIC, should be used as a supplemental measure and not in lieu of financial results reported under GAAP.
/------------------------------------------------------For the Quarter Ended June 30, 2012---------------------------------------------------------------/ | |||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company |
District Energy |
Atlantic Aviation | MIC Corporate |
Proportionately |
IMTT 100% |
District Energy |
|||||||||||||||||||
Gross profit | 31,706 | 18,076 | 2,535 | 74,542 | N/A | 126,859 | 63,412 | 5,069 | |||||||||||||||||||
EBITDA excluding non-cash items | 28,441 | 14,450 | 2,947 | 31,335 | (1,927 | ) | 75,246 | 56,882 | 5,892 | ||||||||||||||||||
Free cash flow | 18,557 | 8,595 | 1,925 | 14,634 | (203 | ) | 43,507 | 37,113 | 3,849 | ||||||||||||||||||
/------------------------------------------------------For the Quarter Ended June 30, 2011---------------------------------------------------------------/ | |||||||||||||||||||||||||||
IMTT 50% | The Gas Company |
District Energy |
Atlantic Aviation | MIC Corporate |
Proportionately |
IMTT 100% |
District Energy |
||||||||||||||||||||
Gross profit | 27,409 | 15,036 | 2,305 | 70,852 | N/A | 115,602 | 54,817 | 4,610 | |||||||||||||||||||
EBITDA excluding non-cash items | 23,731 | 11,380 | 2,825 | 29,163 | (1,795 | ) | 65,303 | 47,461 | 5,648 | ||||||||||||||||||
Free cash flow | 13,448 | 6,270 | 2,061 | 13,296 | (840 | ) | 34,235 | 26,896 | 4,121 | ||||||||||||||||||
Gross profit variance | 15.7 | % | 20.2 | % | 10.0 | % | 5.2 | % | N/A | 9.7 | % | 15.7 | % | 10.0 | % | ||||||||||||
EBITDA excluding non-cash items variance | 19.8 | % | 27.0 | % | 4.3 | % | 7.4 | % | (7.4 | )% | 15.2 | % | 19.8 | % | 4.3 | % | |||||||||||
Free cash flow variance | 38.0 | % | 37.1 | % | (6.6 | )% | 10.1 | % | 75.8 | % | 27.1 | % | 38.0 | % | (6.6 | )% | |||||||||||
|
_____________________ |
(1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. |
/-------------------------------------For the Six Months Ended June 30, 2012-------------------------------------/ | ||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% | The Gas Company |
District Energy |
Atlantic Aviation | MIC Corporate |
Proportionately |
IMTT 100% |
District Energy |
||||||||||||||||||
Gross profit | 64,894 | 36,775 | 4,381 | 152,794 | N/A | 258,844 | 129,788 | 8,760 | ||||||||||||||||||
EBITDA excluding non-cash items | 58,172 | 28,630 | 5,122 | 65,486 | (6,973 | ) | 150,437 | 116,344 | 10,241 | |||||||||||||||||
Free cash flow | 37,579 | 16,605 | 3,268 | 33,743 | (3,672 | ) | 87,523 | 75,158 | 6,534 | |||||||||||||||||
/-------------------------------------For the Six Months Ended June 30, 2011-------------------------------------/ | ||||||||||||||||||||||||||
IMTT 50% | The Gas Company |
District Energy |
Atlantic Aviation | MIC Corporate |
Proportionately |
IMTT 100% |
District Energy |
|||||||||||||||||||
Gross profit | 57,434 | 30,524 | 3,722 | 148,059 | N/A | 239,739 | 114,868 | 7,443 | ||||||||||||||||||
EBITDA excluding non-cash items | 50,223 | 23,169 | 4,544 | 61,238 | (3,189 | ) | 135,984 | 100,445 | 9,086 | |||||||||||||||||
Free cash flow | 27,637 | 11,343 | 2,870 | 29,715 | (340 | ) | 71,225 | 55,274 | 5,738 | |||||||||||||||||
Gross profit variance | 13.0 | % | 20.5 | % | 17.7 | % | 3.2 | % | N/A | 8.0 | % | 13.0 | % | 17.7 | % | |||||||||||
EBITDA excluding non-cash items variance | 15.8 | % | 23.6 | % | 12.7 | % | 6.9 | % | (118.7 | )% | 10.6 | % | 15.8 | % | 12.7 | % | ||||||||||
Free cash flow variance | 36.0 | % | 46.4 | % | 13.9 | % | 13.6 | % | NM | 22.9 | % | 36.0 | % | 13.9 | % | |||||||||||
|
_____________________ |
NM - Not meaningful |
(1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. |
IMTT
MIC has a 50% equity interest in International-Matex Tank Terminals (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 MIC’s 50% interest.
For the second quarter of 2012 compared with the second quarter of 2011:
- Terminal revenue increased 7.6%
- Average storage rental rates increased 5.8%; average storage rental rates are expected to increase by between 5.5% and 7.5% for the full year
- Capacity utilization was stable at 94.3%; utilization decreased from 95.9% in the first quarter of 2012 as an increased number of tanks were out of service for cleaning and inspection in the second quarter
- Terminal operating costs decreased 4.6%; fuel costs were lower reflecting the lower cost of natural gas and certain health care and repair and maintenance costs incurred in 2011 did not recur in 2012
Free cash flow generated by IMTT increased 38.0% to $37.1 million and 36.0% to $75.2 million for the second quarter and six months ended June 30, 2012, respectively. The growth in free cash flow reflects the improved operating results, primarily the higher gross profit from increased storage rates and lower operating expenses as well as lower maintenance capital expenditures, partially offset in the half year by an adjustment to IMTT’s provision for income taxes.
MIC has recalculated the income tax provision provided by IMTT for the first quarter of 2012 in accordance with Generally Accepted Accounting Principles. IMTT’s income tax provision for the first quarter has been recalculated as $4.8 million, down from the $11.4 million previously reported. The income tax provision for the six months ended June 30, 2012 assumes that IMTT will pay federal income taxes of $12.0 million and state income taxes of $5.2 million for the full year 2012. IMTT’s actual federal income tax liability could be higher or lower depending on the value of capital assets placed in service during the year and the extent to which IMTT is able to realize the benefits of bonus depreciation of those assets.
The Gas Company
The Gas Company is the owner and operator of the only regulated (“utility”) gas manufacturing and pipeline 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.
For the second quarter of 2012 compared with the second quarter of 2011:
- Non-utility contribution margin increased 28.3% to $16.2 million from $12.6 million
- Utility contribution margin increased 4.8% to $9.7 million from $9.2 million
- The combined volume of gas products sold increased 5.4%
Free cash flow generated by The Gas Company increased 37.1% to $8.6 million and 46.4% to $16.6 million for the second quarter and six months ended June 30, 2012, respectively. The increase in free cash flow reflects the improved operating results, particularly the increased non-utility contribution margin, partially offset by increased wage and benefits related expenses and an approximately $1.0 million increase in taxes. The Gas Company is a part of MIC’s consolidated tax group and the increased liability is expected to be offset in consolidation with the application of MIC’s federal net operating loss carryforward.
In July 2012, MIC received commitments for the refinancing of the debt facilities of The Gas Company as well as commitments for a new revolver. The business’ current debt structure comprises an $80.0 million term loan facility and $20.0 million capital expenditure facility at the operating company level and an $80.0 million term loan facility at the intermediate holding company level.
The operating company level debt is expected to be replaced with $100.0 million of 10-year private placement notes and a 5-year $60.0 million revolving credit facility. The intermediate holding company facility is expected to be replaced with another 5-year $80.0 million term loan facility. The weighted average cost of all facilities employed by The Gas Company, including interest rate hedges, is expected to be lower than the current all-in rate of 4.92%.
District Energy
MIC’s District Energy business produces chilled water that it distributes via underground pipelines in downtown Chicago to high-rise buildings for use in air conditioning and process cooling systems. The business also operates a site-specific operation that supplies both cooling and heating services to three customers in Las Vegas, Nevada. MIC has a 50.01% (controlling) interest in District Energy. The table and discussion below refer to results for 100% of the business, not MIC’s 50.01% interest.
For the second quarter of 2012 compared with the second quarter of 2011:
- Cooling consumption revenue increased 16.3% to $6.9 million from $5.9 million; higher average temperatures in 2012 compared with 2011 resulted in increased demand for cooling
- Capacity revenue increased 2.6% to $5.6 million from $5.4 million; increases in the number of customers being served and inflation adjustments to existing contracts drove the improved performance
- Gross profit rose 10.0% to $5.1 million from $4.6 million
Free cash flow decreased 6.6% to $3.8 million for the second quarter and increased 13.9% to $6.5 million for the six months ended June 30, 2012. The decrease in the current quarter reflects primarily the timing of income tax payments in 2012 compared with 2011. The year to date increase reflects the higher average temperatures and resulting increased demand for cooling in Chicago in 2012 compared with 2011.
Atlantic Aviation
Atlantic Aviation owns and operates a network of fixed-base operations (FBO) that primarily provide fuel, terminal services and aircraft hangar services to owners and operators of general aviation (GA) aircraft at 64 airports in the US. The network is the one of the largest in the US air transportation industry.
For the second quarter of 2012 compared with the second quarter of 2011 (same store basis):
- Fuel gross profit increased 4.0% on GA volume increases of 1.5% and weighted average margin increases of 2.8%
- GA fuel gross profit improvement was partially offset by modest declines in non-GA gross profit
Atlantic Aviation’s pro-forma leverage ratio decreased to 5.64x including a principal payment of $7.5 million to be made on August 10, 2012.
Following the quarter end, Atlantic Aviation completed the sale of one of its FBO for $5.3 million. The impact of the sale is not expected to have a material impact on the business’ results for the full year.
Free cash flow generated by Atlantic Aviation increased 10.1% to $14.6 million and 13.6% to $33.7 million for the quarter and six months ended June 30, 2012, respectively. The increase in cash generation reflects primarily improved operating results partially offset by higher maintenance capital expenditures in the second quarter of 2012 compared with the second quarter of 2011.
Business Outlook
MIC is increasing its full year 2012 guidance for proportionately combined free cash flow to approximately $3.70 per share. Through the six months ended June 30, 2012 MIC’s businesses generated $1.88 per share in proportionately combined free cash flow.
Contributing to the expected increase in proportionately combined free cash flow in 2012 are better than expected operating results at IMTT and The Gas Company, reductions in interest expense at Atlantic Aviation resulting from the maturity of existing interest rate swaps in October and lower than expected cash capital expenditures for the year at Atlantic Aviation.
The Company also reaffirmed or increased its segment level full-year EBITDA guidance.
- MIC believes that IMTT will produce EBITDA of between $230.0 and $240.0 million, up from prior estimates of $220.0 to $235.0 million. Increases in average storage rates continue to be at the low end of estimates. Utilization is expected to remain at levels consistent with the prior year. Cash capital expenditures are expected to be approximately $50.0 million for the full year.
- The Gas Company is now expected to generate EBITDA in excess of the Company’s original guidance or between $55.0 and $57.5 million, up from prior estimates of between $50.0 and $55.0 million. The business anticipates continued increases in consumption in both the utility and non-utility components of the business consistent with the economic recovery in Hawaii and to be able to maintain margins on non-utility sales.
- District Energy is expected to generate EBITDA of between $21.0 and $22.0 million in 2012. Cooling demand is typically at its highest during the third quarter of the year.
- Atlantic Aviation is expected to generate EBITDA in a range between $130.0 and $135.0 million in 2012. The expectation assumes continued growth in general aviation traffic levels at the airports on which the business operates, and resulting volume and margin improvement, consistent with the first half of 2012.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, August 2, 2012 to review the Company’s results.
How: To listen to the conference call please dial +1(650) 521-5252 at least 10 minutes prior to the scheduled start time. A webcast of the call will be accessible via the Company’s website at www.macquarie.com/mic. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the webcast.
Slides: The Company will prepare materials in support of its conference call presentation. The materials will be available for downloading from the Company’s website the morning of August 2, 2012 prior to the conference call. A link to the materials will be located on the homepage of the MIC website.
Replay: For interested individuals unable to participate in the live conference call, a replay will be available after 2:00 p.m. on August 2, 2012 through August 16, 2012, at +1(404) 537-3406, Passcode: 93685696. An online archive of the webcast will be available on the Company’s website for one year following the call. MIC-G
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of three energy-related businesses including a gas processing and distribution business in Hawaii, The Gas Company, a controlling interest in a District Energy business in Chicago, and a 50% interest in a bulk liquid storage terminal business, International-Matex Tank Terminals. MIC also owns and operates an aviation-related airport services business, Atlantic Aviation. The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic.
Forward-Looking Statements
This press 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 report are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MIC’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
“Macquarie Group” refers to the Macquarie Group of companies, which comprises Macquarie Group Limited and its worldwide subsidiaries and affiliates. Macquarie Infrastructure Company LLC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Infrastructure Company LLC.
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
($ In Thousands, Except Share Data) | ||||||||
June 30,
2012 |
December 31,
2011 |
|||||||
ASSETS | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 145,574 | $ | 22,786 | ||||
Accounts receivable, less allowance for doubtful accounts | ||||||||
of $639 and $445, respectively | 64,694 | 56,458 | ||||||
Inventories | 22,117 | 23,106 | ||||||
Prepaid expenses | 5,754 | 7,338 | ||||||
Deferred income taxes | 19,291 | 19,102 | ||||||
Other | 14,306 | 14,523 | ||||||
Total current assets | 271,736 | 143,313 | ||||||
Property, equipment, land and leasehold improvements, net | 559,425 | 561,022 | ||||||
Equipment lease receivables | 30,263 | 32,189 | ||||||
Investment in unconsolidated business | 136,463 | 230,401 | ||||||
Goodwill | 516,175 | 516,175 | ||||||
Intangible assets, net | 645,043 | 662,135 | ||||||
Other | 21,162 | 23,398 | ||||||
Total assets | $ | 2,180,267 | $ | 2,168,633 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Due to manager - related party | $ | 4,871 | $ | 4,300 | ||||
Accounts payable | 27,421 | 29,199 | ||||||
Accrued expenses | 24,974 | 23,827 | ||||||
Current portion of long-term debt | 255,916 | 34,535 | ||||||
Fair value of derivative instruments | 23,539 | 39,339 | ||||||
Other | 18,342 | 17,702 | ||||||
Total current liabilities | 355,063 | 148,902 | ||||||
Long-term debt, net of current portion | 858,827 | 1,086,053 | ||||||
Deferred income taxes | 195,073 | 177,262 | ||||||
Fair value of derivative instruments | 9,819 | 15,576 | ||||||
Other | 47,007 | 46,980 | ||||||
Total liabilities | 1,465,789 | 1,474,773 | ||||||
Commitments and contingencies | - | - | ||||||
Members’ equity: | ||||||||
LLC interests, no par value; 500,000,000 authorized; 46,645,028 LLC | ||||||||
interests issued and outstanding at June 30, 2012 and 46,338,225 LLC interests issued and outstanding at December 31, 2011 | 942,955 | 951,729 | ||||||
Additional paid in capital | 21,447 | 21,447 | ||||||
Accumulated other comprehensive loss | (22,549) | (27,412) | ||||||
Accumulated deficit | (216,852) | (242,082) | ||||||
Total members’ equity | 725,001 | 703,682 | ||||||
Noncontrolling interests | (10,523) | (9,822) | ||||||
Total equity | 714,478 | 693,860 | ||||||
Total liabilities and equity | $ | 2,180,267 | $ | 2,168,633 | ||||
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||
(Unaudited) | ||||||||||||||
($ In Thousands, Except Share and Per Share Data) | ||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||
Revenue | ||||||||||||||
Revenue from product sales | $ | 169,129 | $ | 161,582 | $ | 342,083 | $ | 314,646 | ||||||
Revenue from product sales - utility | 36,807 | 36,421 | 75,121 | 70,694 | ||||||||||
Service revenue | 51,430 | 47,923 | 103,839 | 99,170 | ||||||||||
Financing and equipment lease income | 1,150 | 1,261 | 2,329 | 2,548 | ||||||||||
Total revenue | 258,516 | 247,187 | 523,372 | 487,058 | ||||||||||
Costs and expenses | ||||||||||||||
Cost of product sales | 115,720 | 113,226 | 235,101 | 218,551 | ||||||||||
Cost of product sales - utility | 31,324 | 30,772 | 63,496 | 57,637 | ||||||||||
Cost of services | 13,784 | 12,690 | 26,445 | 24,844 | ||||||||||
Selling, general and administrative | 50,467 | 48,309 | 105,730 | 99,979 | ||||||||||
Fees to manager - related party | 4,760 | 4,156 | 9,755 | 7,788 | ||||||||||
Depreciation | 7,557 | 8,623 | 15,108 | 15,833 | ||||||||||
Amortization of intangibles | 8,546 | 16,044 | 17,092 | 24,763 | ||||||||||
Loss on disposal of assets | 327 | 1,225 | 327 | 1,225 | ||||||||||
Total operating expenses | 232,485 | 235,045 | 473,054 | 450,620 | ||||||||||
Operating income | 26,031 | 12,142 | 50,318 | 36,438 | ||||||||||
Other income (expense) | ||||||||||||||
Interest income | 4 | 97 | 6 | 101 | ||||||||||
Interest expense(1) | (10,925) | (19,866) | (23,932) | (34,335) | ||||||||||
Equity in earnings and amortization charges of investee | 6,805 | 3,270 | 16,306 | 11,632 | ||||||||||
Other income (expense), net | 48 | (46) | (4) | (395) | ||||||||||
Net income (loss) before incomes taxes | 21,963 | (4,403) | 42,694 | 13,441 | ||||||||||
(Provision) benefit for income taxes | (9,935) | 488 | (16,456) | (6,498) | ||||||||||
Net income (loss) | $ | 12,028 | $ | (3,915) | $ | 26,238 | $ | 6,943 | ||||||
Less: net income (loss) attributable to noncontrolling interests | 890 | (1,425) | 1,008 | (1,732) | ||||||||||
Net income (loss) attributable to MIC LLC | $ | 11,138 | $ | (2,490) | $ | 25,230 | $ | 8,675 | ||||||
Basic income (loss) per share attributable to MIC LLC interest holders | $ | 0.24 | $ | (0.05) | $ | 0.54 | $ | 0.19 | ||||||
Weighted average number of shares outstanding: basic | 46,532,402 | 45,901,486 | 46,444,280 | 45,816,499 | ||||||||||
Diluted income (loss) per share attributable to MIC LLC interest holders | $ | 0.24 | $ | (0.05) | $ | 0.54 | $ | 0.19 | ||||||
Weighted average number of shares outstanding: diluted | 46,553,858 | 45,901,486 | 46,466,575 | 45,846,235 | ||||||||||
Cash dividends declared per share | $ | 0.625 | $ | 0.20 | $ | 0.825 | $ | 0.40 | ||||||
_____________________ |
(1) Interest expense includes non-cash gains on derivative instruments of $7.5 million and $13.1 million for the quarter and six months ended June 30, 2012, respectively. For the quarter and six months ended June 30, 2011, interest expense includes non-cash losses on derivative instruments of $545,000 and non-cash gains on derivative instruments of $5.0 million, respectively.
|
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||
(Unaudited) | ||||||||||
($ In Thousands) | ||||||||||
Six Months Ended | ||||||||||
June 30, 2012 | June 30, 2011 | |||||||||
Operating activities | ||||||||||
Net income | $ | 26,238 | $ | 6,943 | ||||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||||
activities: | ||||||||||
Depreciation and amortization of property and equipment | 18,459 | 19,138 | ||||||||
Amortization of intangible assets | 17,092 | 24,763 | ||||||||
Loss on disposal of assets | 47 | 1,153 | ||||||||
Equity in earnings and amortization charges of investees | (16,306 | ) | (11,632 | ) | ||||||
Equity distributions from investees | 70,931 | - | ||||||||
Amortization of debt financing costs | 1,943 | 2,060 | ||||||||
Non-cash derivative gains | (13,114 | ) | (4,965 | ) | ||||||
Base management fees settled in LLC interests | 9,755 | 7,788 | ||||||||
Equipment lease receivable, net | 1,710 | 1,493 | ||||||||
Deferred rent | 185 | 201 | ||||||||
Deferred taxes | 14,130 | 5,370 | ||||||||
Other non-cash expenses, net | 1,532 | 1,218 | ||||||||
Changes in other assets and liabilities: | ||||||||||
Accounts receivable | (8,656 | ) | (10,634 | ) | ||||||
Inventories | 1,734 | (45 | ) | |||||||
Prepaid expenses and other current assets | 1,486 | 1,112 | ||||||||
Due to manager - related party | 33 | 8 | ||||||||
Accounts payable and accrued expenses | (472 | ) | (1,436 | ) | ||||||
Income taxes payable | (66 | ) | (251 | ) | ||||||
Other, net | (1,830 | ) | (997 | ) | ||||||
Net cash provided by operating activities | 124,831 | 41,287 | ||||||||
Investing activities | ||||||||||
Proceeds from sale of assets | 375 | 16,916 | ||||||||
Purchases of property and equipment | (15,333 | ) | (15,587 | ) | ||||||
Investment in capital leased assets | - | (24 | ) | |||||||
Return of investment in unconsolidated business | 39,648 | - | ||||||||
Other | 146 | 7 | ||||||||
Net cash provided by investing activities | 24,836 | 1,312 | ||||||||
Financing activities | ||||||||||
Proceeds from long-term debt | 10,000 | 2,489 | ||||||||
Net proceeds on line of credit facilities | - | 4,400 | ||||||||
Dividends paid to holders of LLC interests | (18,562 | ) | (9,170 | ) | ||||||
Distributions paid to noncontrolling interests | (2,133 | ) | (3,951 | ) | ||||||
Payment of long-term debt | (15,845 | ) | (24,500 | ) | ||||||
Debt financing costs paid | (66 | ) | - | |||||||
Payment of notes and capital lease obligations | (273 | ) | (76 | ) | ||||||
Net cash used in financing activities | (26,879 | ) | (30,808 | ) | ||||||
Net change in cash and cash equivalents | 122,788 | 11,791 | ||||||||
Cash and cash equivalents, beginning of period | 22,786 | 24,563 | ||||||||
Cash and cash equivalents, end of period | $ | 145,574 | $ | 36,354 | ||||||
Supplemental disclosures of cash flow information | ||||||||||
Non-cash investing and financing activities: | ||||||||||
Accrued purchases of property and equipment | $ | 2,083 | $ | 2,163 | ||||||
Acquisition of equipment through capital leases | $ | 2,624 | $ | - | ||||||
Issuance of LLC interests to manager for base management fees | $ | 9,217 | $ | 6,846 | ||||||
Issuance of LLC interests to independent directors | $ | 571 | $ | 450 | ||||||
Taxes paid | $ | 2,613 | $ | 1,349 | ||||||
Interest paid | $ | 34,972 | $ | 37,296 | ||||||
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS – MD&A |
||||||||||||||||||||||||||||||
Quarter Ended June 30, |
|
Change Favorable/(Unfavorable) |
Six Months Ended June 30, |
Change
Favorable/(Unfavorable) |
||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | |||||||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
Revenue from product sales | $ | 169,129 | $ | 161,582 | 7,547 | 4.7 | $ | 342,083 | $ | 314,646 | 27,437 | 8.7 | ||||||||||||||||||
Revenue from product sales - utility | 36,807 | 36,421 | 386 | 1.1 | 75,121 | 70,694 | 4,427 | 6.3 | ||||||||||||||||||||||
Service revenue | 51,430 | 47,923 | 3,507 | 7.3 | 103,839 | 99,170 | 4,669 | 4.7 | ||||||||||||||||||||||
Financing and equipment lease income | 1,150 | 1,261 | (111 | ) | (8.8 | ) | 2,329 | 2,548 | (219 | ) | (8.6 | ) | ||||||||||||||||||
Total revenue | 258,516 | 247,187 | 11,329 | 4.6 | 523,372 | 487,058 | 36,314 | 7.5 | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||
Cost of product sales | 115,720 | 113,226 | (2,494 | ) | (2.2 | ) | 235,101 | 218,551 | (16,550 | ) | (7.6 | ) | ||||||||||||||||||
Cost of product sales - utility | 31,324 | 30,772 | (552 | ) | (1.8 | ) | 63,496 | 57,637 | (5,859 | ) | (10.2 | ) | ||||||||||||||||||
Cost of services | 13,784 | 12,690 | (1,094 | ) | (8.6 | ) | 26,445 | 24,844 | (1,601 | ) | (6.4 | ) | ||||||||||||||||||
Gross profit | 97,688 | 90,499 | 7,189 | 7.9 | 198,330 | 186,026 | 12,304 | 6.6 | ||||||||||||||||||||||
Selling, general and administrative | 50,467 | 48,309 | (2,158 | ) | (4.5 | ) | 105,730 | 99,979 | (5,751 | ) | (5.8 | ) | ||||||||||||||||||
Fees to manager - related party | 4,760 | 4,156 | (604 | ) | (14.5 | ) | 9,755 | 7,788 | (1,967 | ) | (25.3 | ) | ||||||||||||||||||
Depreciation | 7,557 | 8,623 | 1,066 | 12.4 | 15,108 | 15,833 | 725 | 4.6 | ||||||||||||||||||||||
Amortization of intangibles | 8,546 | 16,044 | 7,498 | 46.7 | 17,092 | 24,763 | 7,671 | 31.0 | ||||||||||||||||||||||
Loss on disposal of assets | 327 | 1,225 | 898 | 73.3 | 327 | 1,225 | 898 | 73.3 | ||||||||||||||||||||||
Total operating expenses | 71,657 | 78,357 | 6,700 | 8.6 | 148,012 | 149,588 | 1,576 | 1.1 | ||||||||||||||||||||||
Operating income | 26,031 | 12,142 | 13,889 | 114.4 | 50,318 | 36,438 | 13,880 | 38.1 | ||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||
Interest income | 4 | 97 | (93 | ) | (95.9 | ) | 6 | 101 | (95 | ) | (94.1 | ) | ||||||||||||||||||
Interest expense(1) | (10,925 | ) | (19,866 | ) | 8,941 | 45.0 | (23,932 | ) | (34,335 | ) | 10,403 | 30.3 | ||||||||||||||||||
Equity in earnings and amortization charges of investees | 6,805 | 3,270 | 3,535 | 108.1 | 16,306 | 11,632 | 4,674 | 40.2 | ||||||||||||||||||||||
Other income (expense), net | 48 | (46 | ) | 94 | NM | (4 | ) | (395 | ) | 391 | 99.0 | |||||||||||||||||||
Net income (loss) before income taxes | 21,963 | (4,403 | ) | 26,366 | NM | 42,694 | 13,441 | 29,253 | NM | |||||||||||||||||||||
(Provision) benefit for income taxes | (9,935 | ) | 488 | (10,423 | ) | NM | (16,456 | ) | (6,498 | ) | (9,958 | ) | (153.2 | ) | ||||||||||||||||
Net income (loss) | $ | 12,028 | $ | (3,915 | ) | 15,943 | NM | $ | 26,238 | $ | 6,943 | 19,295 | NM | |||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 890 | (1,425 | ) | (2,315 | ) | (162.5 | ) | 1,008 | (1,732 | ) | (2,740 | ) | (158.2 | ) | ||||||||||||||||
Net income (loss) attributable to MIC LLC | $ | 11,138 | $ | (2,490 | ) | 13,628 | NM | $ | 25,230 | $ | 8,675 | 16,555 | 190.8 | |||||||||||||||||
|
_____________________ |
NM - Not meaningful |
(1) Interest expense includes non-cash gains on derivative instruments of $7.5 million and $13.1 million for the quarter and six months ended June 30, 2012, respectively. For the quarter and six months ended June 30, 2011, interest expense includes non-cash losses on derivative instruments of $545,000 and non-cash gains on derivative instruments of $5.0 million, respectively. |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
||||||||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO MIC LLC | ||||||||||||||||||||||||||
TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING | ||||||||||||||||||||||||||
ACTIVITIES TO FREE CASH FLOW | ||||||||||||||||||||||||||
Quarter Ended June 30, |
Change
Favorable/(Unfavorable) |
Six Months Ended June 30, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | |||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||
Net income (loss) attributable to MIC LLC(1) | $ | 11,138 | $ | (2,490 | ) | $ | 25,230 | $ | 8,675 | |||||||||||||||||
Interest expense, net(2) | 10,921 | 19,769 | 23,926 | 34,234 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 9,935 | (488 | ) | 16,456 | 6,498 | |||||||||||||||||||||
Depreciation(3) | 7,557 | 8,623 | 15,108 | 15,833 | ||||||||||||||||||||||
Depreciation - cost of services(3) | 1,677 | 1,658 | 3,351 | 3,305 | ||||||||||||||||||||||
Amortization of intangibles(4) | 8,546 | 16,044 | 17,092 | 24,763 | ||||||||||||||||||||||
Loss on disposal of assets | 47 | 1,153 | 47 | 1,153 | ||||||||||||||||||||||
Equity in earnings and amortization charges of investees(5) | 9,501 | (3,270 | ) | - | (11,632 | ) | ||||||||||||||||||||
Base management fees settled/to be settled in LLC interests | 4,760 | 4,156 | 9,755 | 7,788 | ||||||||||||||||||||||
Other non-cash expense (income), net | 1,974 | (759 | ) | 2,725 | (313 | ) | ||||||||||||||||||||
EBITDA excluding non-cash items | $ | 66,056 | $ | 44,396 | 21,660 | 48.8 | $ | 113,690 | $ | 90,304 | 23,386 | 25.9 | ||||||||||||||
EBITDA excluding non-cash items | $ | 66,056 | $ | 44,396 | $ | 113,690 | $ | 90,304 | ||||||||||||||||||
Interest expense, net(2) | (10,921 | ) | (19,769 | ) | (23,926 | ) | (34,234 | ) | ||||||||||||||||||
Interest rate swap breakage fees(2) | (252 | ) | (627 | ) | (500 | ) | (1,732 | ) | ||||||||||||||||||
Non-cash derivative (gains) losses recorded in interest expense(2) | (7,232 | ) | 1,172 | (12,614 | ) | (3,233 | ) | |||||||||||||||||||
Amortization of debt financing costs(2) | 965 | 1,030 | 1,943 | 2,060 | ||||||||||||||||||||||
Cash distributions received in excess of equity in earnings and amortization | ||||||||||||||||||||||||||
charges of investees(6) | 54,625 | - | 54,625 | - | ||||||||||||||||||||||
Equipment lease receivables, net | 872 | 753 | 1,710 | 1,493 | ||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (1,573 | ) | (196 | ) | (2,326 | ) | (1,128 | ) | ||||||||||||||||||
Changes in working capital | (1,439 | ) | (7,014 | ) | (7,771 | ) | (12,243 | ) | ||||||||||||||||||
Cash provided by operating activities | 101,101 | 19,745 | 124,831 | 41,287 | ||||||||||||||||||||||
Changes in working capital | 1,439 | 7,014 | 7,771 | 12,243 | ||||||||||||||||||||||
Maintenance capital expenditures | (4,734 | ) | (3,912 | ) | (8,461 | ) | (7,074 | ) | ||||||||||||||||||
Free cash flow from continuing operations | $ | 97,806 | $ | 22,847 | 74,959 | NM | $ | 124,141 | $ | 46,456 | 77,685 | 167.2 | ||||||||||||||
_____________________ |
||
(1) |
Net income (loss) attributable to MIC LLC excludes net income attributable to noncontrolling interests of $890,000 and $1.0 million for the quarter and six months ended June 30, 2012, respectively, and net loss attributable to noncontrolling interests of $1.4 million and $1.7 million for the quarter and six months ended June 30, 2011, respectively. |
|
(2) |
Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
|
(3) |
Depreciation - cost of services includes depreciation expense for District Energy, which is reported in cost of services in our consolidated condensed statements of operations. Depreciation and Depreciation - cost of services does not include acquisition- related step-up depreciation expense of $2.0 million and $3.9 million for the quarter and six months ended June 30, 2012, respectively, and $1.9 million and $3.6 million for the quarter and six months ended June 30, 2011, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations. |
|
(4) |
Amortization of intangibles does not include acquisition-related step-up amortization expense of $85,000 and $171,000 for the quarter and six months ended June 30, 2012, respectively, and $151,000 and $435,000 for the quarter and six months ended June 30, 2011, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations. |
|
(5) |
Equity in earnings and amortization charges of investees 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 six months ended June 30, 2012, we recognized equity in earnings and amortization charges of investee income of $6.8 million and $16.3 million, respectively, in the consolidated condensed statement of operations, which was fully offset by the cash distributions received in June of 2012. The $9.5 million for the quarter ended June 30, 2012 represents the excess cash distributions received from IMTT over $16.3 million that was applied on the equity in earnings and amortization charges of investee income recognized during the quarter. See "Arbitration Proceeding Between MIC and Co-investor in IMTT" for further discussions. |
|
(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 investees, since our investment in IMTT, adjusted for the current periods equity in earnings and amortization charges of investees in the calculation from net income (loss) attributable to MIC LLC to EBITDA excluding non-cash items above. The cumulative allocation of the $110.6 million distributions received in June of 2012 was $70.9 million recorded in net cash provided by operating activities and $39.6 million recorded in net cash provided by investing activities, as a return on investment, on the consolidated condensed statements of cash flows. See "Arbitration Proceeding Between MIC and Co-investor in IMTT" for further discussions. |
MACQUARIE INFRASTRUCTURE COMPANY LLC |
|||||||||||||||||||
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING NON- | |||||||||||||||||||
CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||||
IMTT |
|||||||||||||||||||
Quarter Ended |
Six Months Ended June 30, |
||||||||||||||||||
Change |
Change |
||||||||||||||||||
2012 | 2011 |
Favorable/(Unfavorable) |
2012 | 2011 |
Favorable/(Unfavorable) |
||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | ||||||||||||
|
($ In Thousands) (Unaudited) |
||||||||||||||||||
Revenue | |||||||||||||||||||
Terminal revenue | 109,167 | 101,436 | 7,731 | 7.6 | 220,784 | 207,451 | 13,333 | 6.4 | |||||||||||
Environmental response revenue | 4,596 | 5,514 | (918) | (16.6) | 10,983 | 10,330 | 653 | 6.3 | |||||||||||
Total revenue | 113,763 | 106,950 | 6,813 | 6.4 | 231,767 | 217,781 | 13,986 | 6.4 | |||||||||||
Costs and expenses | |||||||||||||||||||
Terminal operating costs | 45,905 | 48,121 | 2,216 | 4.6 | 92,377 | 94,170 | 1,793 | 1.9 | |||||||||||
Environmental response operating costs | 4,446 | 4,012 | (434) | (10.8) | 9,602 | 8,743 | (859) | (9.8) | |||||||||||
Total operating costs | 50,351 | 52,133 | 1,782 | 3.4 | 101,979 | 102,913 | 934 | 0.9 | |||||||||||
Terminal gross profit | 63,262 | 53,315 | 9,947 | 18.7 | 128,407 | 113,281 | 15,126 | 13.4 | |||||||||||
Environmental response gross profit | 150 | 1,502 | (1,352) | (90.0) | 1,381 | 1,587 | (206) | (13.0) | |||||||||||
Gross profit | 63,412 | 54,817 | 8,595 | 15.7 | 129,788 | 114,868 | 14,920 | 13.0 | |||||||||||
General and administrative expenses | 7,341 | 7,717 | 376 | 4.9 | 14,800 | 15,580 | 780 | 5.0 | |||||||||||
Depreciation and amortization | 17,117 | 16,360 | (757) | (4.6) | 34,024 | 32,035 | (1,989) | (6.2) | |||||||||||
Operating income | 38,954 | 30,740 | 8,214 | 26.7 | 80,964 | 67,253 | 13,711 | 20.4 | |||||||||||
Interest expense, net(1) | (11,790) | (16,311) | 4,521 | 27.7 | (18,381) | (20,994) | 2,613 | 12.4 | |||||||||||
Other income | 807 | 341 | 466 | 136.7 | 1,263 | 1,120 | 143 | 12.8 | |||||||||||
Provision for income taxes | (11,869) | (5,903) | (5,966) | (101.1) | (26,236) | (19,447) | (6,789) | (34.9) | |||||||||||
Noncontrolling interest | (86) | 66 | (152) | NM | (185) | 91 | (276) | NM | |||||||||||
Net income | 16,016 | 8,933 | 7,083 | 79.3 | 37,425 | 28,023 | 9,402 | 33.6 | |||||||||||
Reconciliation of net income to EBITDA excluding non-cash items: | |||||||||||||||||||
Net income | 16,016 | 8,933 | 37,425 | 28,023 | |||||||||||||||
Interest expense, net(1) | 11,790 | 16,311 | 18,381 | 20,994 | |||||||||||||||
Provision for income taxes | 11,869 | 5,903 | 26,236 | 19,447 | |||||||||||||||
Depreciation and amortization | 17,117 | 16,360 | 34,024 | 32,035 | |||||||||||||||
Other non-cash expense (income) | 90 | (46) | 278 | (54) | |||||||||||||||
EBITDA excluding non-cash items | 56,882 | 47,461 | 9,421 | 19.8 | 116,344 | 100,445 | 15,899 | 15.8 | |||||||||||
EBITDA excluding non-cash items | 56,882 | 47,461 | 116,344 | 100,445 | |||||||||||||||
Interest expense, net(1) | (11,790) | (16,311) | (18,381) | (20,994) | |||||||||||||||
Non-cash derivative losses (gains) recorded in interest expense(1) | 2,316 | 7,640 | (363) | 3,308 | |||||||||||||||
Amortization of debt financing costs(1) | 809 | 807 | 1,614 | 1,618 | |||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (3,769) | 304 | (8,603) | (7,584) | |||||||||||||||
Changes in working capital | 4,683 | (14,479) | 12,298 | (12,847) | |||||||||||||||
Cash provided by operating activities | 49,131 | 25,422 | 102,909 | 63,946 | |||||||||||||||
Changes in working capital | (4,683) | 14,479 | (12,298) | 12,847 | |||||||||||||||
Maintenance capital expenditures | (7,335) | (13,005) | (15,453) | (21,519) | |||||||||||||||
Free cash flow | 37,113 | 26,896 | 10,217 | 38.0 | 75,158 | 55,274 | 19,884 | 36.0 | |||||||||||
_____________________ |
NM - Not meaningful |
(1) Interest expense, net, includes non-cash (losses) gains on derivative instruments and non-cash amortization of deferred financing fees. |
The Gas Company |
|||||||||||||||||||||||||||
Quarter Ended June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||||||
Change |
Change |
||||||||||||||||||||||||||
2012 | 2011 |
Favorable/(Unfavorable) |
2012 | 2011 |
Favorable/(Unfavorable) |
||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | ||||||||||||||||||||
|
($ In Thousands) (Unaudited) |
||||||||||||||||||||||||||
Contribution margin | |||||||||||||||||||||||||||
Revenue - non-utility | 29,748 | 26,935 | 2,813 | 10.4 | 61,377 | 54,286 | 7,091 | 13.1 | |||||||||||||||||||
Cost of revenue - non-utility | 13,554 | 14,315 | 761 | 5.3 | 29,127 | 30,372 | 1,245 | 4.1 | |||||||||||||||||||
Contribution margin - non-utility | 16,194 | 12,620 | 3,574 | 28.3 | 32,250 | 23,914 | 8,336 | 34.9 | |||||||||||||||||||
Revenue - utility | 36,807 | 36,421 | 386 | 1.1 | 75,121 | 70,694 | 4,427 | 6.3 | |||||||||||||||||||
Cost of revenue - utility | 27,149 | 27,206 | 57 | 0.2 | 55,366 | 51,211 | (4,155 | ) | (8.1 | ) | |||||||||||||||||
Contribution margin - utility | 9,658 | 9,215 | 443 | 4.8 | 19,755 | 19,483 | 272 | 1.4 | |||||||||||||||||||
Total contribution margin | 25,852 | 21,835 | 4,017 | 18.4 | 52,005 | 43,397 | 8,608 | 19.8 | |||||||||||||||||||
Production | 2,127 | 1,778 | (349 | ) | (19.6 | ) | 4,133 | 3,454 | (679 | ) | (19.7 | ) | |||||||||||||||
Transmission and distribution | 5,649 | 5,021 | (628 | ) | (12.5 | ) | 11,097 | 9,419 | (1,678 | ) | (17.8 | ) | |||||||||||||||
Gross profit | 18,076 | 15,036 | 3,040 | 20.2 | 36,775 | 30,524 | 6,251 | 20.5 | |||||||||||||||||||
Selling, general and administrative expenses | 4,558 | 4,041 | (517 | ) | (12.8 | ) | 9,815 | 8,258 | (1,557 | ) | (18.9 | ) | |||||||||||||||
Depreciation and amortization | 1,902 | 1,802 | (100 | ) | (5.5 | ) | 3,843 | 3,575 | (268 | ) | (7.5 | ) | |||||||||||||||
Operating income | 11,616 | 9,193 | 2,423 | 26.4 | 23,117 | 18,691 | 4,426 | 23.7 | |||||||||||||||||||
Interest expense, net(1) | (1,516 | ) | (3,483 | ) | 1,967 | 56.5 | (3,407 | ) | (5,497 | ) | 2,090 | 38.0 | |||||||||||||||
Other expense | (63 | ) | (127 | ) | 64 | 50.4 | (132 | ) | (279 | ) | 147 | 52.7 | |||||||||||||||
Provision for income taxes | (3,913 | ) | (2,310 | ) | (1,603 | ) | (69.4 | ) | (7,712 | ) | (5,212 | ) | (2,500 | ) | (48.0 | ) | |||||||||||
Net income(2) | 6,124 | 3,273 | 2,851 | 87.1 | 11,866 | 7,703 | 4,163 | 54.0 | |||||||||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items: | |||||||||||||||||||||||||||
Net income(2) | 6,124 | 3,273 | 11,866 | 7,703 | |||||||||||||||||||||||
Interest expense, net(1) | 1,516 | 3,483 | 3,407 | 5,497 | |||||||||||||||||||||||
Provision for income taxes | 3,913 | 2,310 | 7,712 | 5,212 | |||||||||||||||||||||||
Depreciation and amortization | 1,902 | 1,802 | 3,843 | 3,575 | |||||||||||||||||||||||
Other non-cash expenses | 995 | 512 | 1,802 | 1,182 | |||||||||||||||||||||||
EBITDA excluding non-cash items | 14,450 | 11,380 | 3,070 | 27.0 | 28,630 | 23,169 | 5,461 | 23.6 | |||||||||||||||||||
EBITDA excluding non-cash items | 14,450 | 11,380 | 28,630 | 23,169 | |||||||||||||||||||||||
Interest expense, net(1) | (1,516 | ) | (3,483 | ) | (3,407 | ) | (5,497 | ) | |||||||||||||||||||
Non-cash derivative (gains) losses recorded in interest expense(1) | (832 | ) | 1,173 | (1,297 | ) | 897 | |||||||||||||||||||||
Amortization of debt financing costs(1) | 119 | 120 | 239 | 239 | |||||||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (2,205 | ) | (1,260 | ) | (4,375 | ) | (3,545 | ) | |||||||||||||||||||
Changes in working capital | (847 | ) | (2,034 | ) | (3,705 | ) | (6,449 | ) | |||||||||||||||||||
Cash provided by operating activities | 9,169 | 5,896 | 16,085 | 8,814 | |||||||||||||||||||||||
Changes in working capital | 847 | 2,034 | 3,705 | 6,449 | |||||||||||||||||||||||
Maintenance capital expenditures | (1,421 | ) | (1,660 | ) | (3,185 | ) | (3,920 | ) | |||||||||||||||||||
Free cash flow | 8,595 | 6,270 | 2,325 | 37.1 | 16,605 | 11,343 | 5,262 | 46.4 | |||||||||||||||||||
_____________________ | ||
(1) |
Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. |
|
(2) |
Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
District Energy |
||||||||||||||||||||||||||
Quarter Ended June 30, |
Six Months Ended
June 30, |
|||||||||||||||||||||||||
Change |
Change |
|||||||||||||||||||||||||
2012 | 2011 |
Favorable/(Unfavorable) |
2012 | 2011 |
Favorable/(Unfavorable) |
|||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||
|
($ In Thousands) (Unaudited) |
|||||||||||||||||||||||||
Cooling capacity revenue | 5,567 | 5,428 | 139 | 2.6 | 11,062 | 10,759 | 303 | 2.8 | ||||||||||||||||||
Cooling consumption revenue | 6,890 | 5,924 | 966 | 16.3 | 10,363 | 8,354 | 2,009 | 24.0 | ||||||||||||||||||
Other revenue | 682 | 903 | (221 | ) | (24.5 | ) | 1,321 | 1,593 | (272 | ) | (17.1 | ) | ||||||||||||||
Finance lease revenue | 1,150 | 1,261 | (111 | ) | (8.8 | ) | 2,329 | 2,548 | (219 | ) | (8.6 | ) | ||||||||||||||
Total revenue | 14,289 | 13,516 | 773 | 5.7 | 25,075 | 23,254 | 1,821 | 7.8 | ||||||||||||||||||
Direct expenses — electricity |
4,148 |
3,675 | (473 | ) | (12.9 | ) |
|
6,686 | 5,621 | (1,065 | ) | (18.9 | ) | |||||||||||||
Direct expenses — other(1) | 5,072 | 5,231 | 159 | 3.0 | 9,629 | 10,190 | 561 | 5.5 | ||||||||||||||||||
Direct expenses — total | 9,220 | 8,906 | (314 | ) |
(3.5 |
) |
16,315 | 15,811 | (504 | ) | (3.2 | ) | ||||||||||||||
Gross profit | 5,069 | 4,610 | 459 | 10.0 | 8,760 | 7,443 | 1,317 | 17.7 | ||||||||||||||||||
Selling, general and administrative expenses | 961 | 762 | (199 | ) | (26.1 | ) | 1,852 | 1,685 | (167 | ) | (9.9 | ) | ||||||||||||||
Amortization of intangibles | 341 | 341 | - | - | 682 | 678 | (4 | ) | (0.6 | ) | ||||||||||||||||
Operating income | 3,767 | 3,507 | 260 | 7.4 | 6,226 | 5,080 | 1,146 | 22.6 | ||||||||||||||||||
Interest expense, net(2) | (2,127 | ) | (4,925 | ) | 2,798 | 56.8 | (4,456 | ) | (7,184 | ) | 2,728 | 38.0 | ||||||||||||||
Other income | 75 | 55 | 20 | 36.4 | 132 | 111 | 21 | 18.9 | ||||||||||||||||||
(Provision) benefit for income taxes | (621 | ) | 650 | (1,271 | ) | (195.5 | ) | (611 | ) | 997 | (1,608 | ) | (161.3 | ) | ||||||||||||
Noncontrolling interest | (208 | ) | (213 | ) | 5 | 2.3 | (419 | ) | (426 | ) | 7 | 1.6 | ||||||||||||||
Net income (loss) | 886 | (926 | ) | 1,812 | 195.7 | 872 | (1,422 | ) | 2,294 | 161.3 | ||||||||||||||||
Reconciliation of net income (loss) to EBITDA excluding non- | ||||||||||||||||||||||||||
cash items: | ||||||||||||||||||||||||||
Net income (loss) | 886 | (926 | ) | 872 | (1,422 | ) | ||||||||||||||||||||
Interest expense, net(2) | 2,127 | 4,925 | 4,456 | 7,184 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 621 | (650 | ) | 611 | (997 | ) | ||||||||||||||||||||
Depreciation(1) | 1,677 | 1,658 | 3,351 | 3,305 | ||||||||||||||||||||||
Amortization of intangibles | 341 | 341 | 682 | 678 | ||||||||||||||||||||||
Other non-cash expenses | 240 | 300 | 269 | 338 | ||||||||||||||||||||||
EBITDA excluding non-cash items | 5,892 | 5,648 | 244 | 4.3 | 10,241 | 9,086 | 1,155 | 12.7 | ||||||||||||||||||
EBITDA excluding non-cash items | 5,892 | 5,648 | 10,241 | 9,086 | ||||||||||||||||||||||
Interest expense, net(2) | (2,127 | ) | (4,925 | ) | (4,456 | ) | (7,184 | ) | ||||||||||||||||||
Non-cash derivative (gains) losses recorded in interest expense(2) | (566 | ) | 2,304 | (869 | ) | 1,943 | ||||||||||||||||||||
Amortization of debt financing costs(2) | 175 | 170 | 345 | 340 | ||||||||||||||||||||||
Equipment lease receivable, net | 872 | 753 | 1,710 | 1,493 | ||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (320 | ) | 230 | (273 | ) | 185 | ||||||||||||||||||||
Changes in working capital | (47 | ) | (1,142 | ) | (1,872 | ) | 181 | |||||||||||||||||||
Cash provided by operating activities | 3,879 | 3,038 | 4,826 | 6,044 | ||||||||||||||||||||||
Changes in working capital | 47 | 1,142 | 1,872 | (181 | ) | |||||||||||||||||||||
Maintenance capital expenditures | (77 | ) | (59 | ) | (164 | ) | (125 | ) | ||||||||||||||||||
Free cash flow | 3,849 | 4,121 | (272 | ) | (6.6 | ) | 6,534 | 5,738 | 796 | 13.9 | ||||||||||||||||
_____________________ | ||
(1) |
Includes depreciation expense of $1.7 million and $3.4 million for the quarter and six months ended June 30, 2012, respectively, and $1.7 million and $3.3 million for the quarter and six months ended June 30, 2011, respectively. |
|
(2) |
Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. |
Atlantic Aviation |
||||||||||||||||||||||||||
Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||||
2012 | 2011 |
Change
Favorable/(Unfavorable) |
2012 | 2011 |
Change
Favorable/(Unfavorable) |
|||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||
|
($ In Thousands) (Unaudited) |
|||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Fuel revenue | 139,381 | 134,647 | 4,734 | 3.5 | 280,706 | 260,360 | 20,346 | 7.8 | ||||||||||||||||||
Non-fuel revenue | 38,291 | 35,668 | 2,623 | 7.4 | 81,093 | 78,464 | 2,629 | 3.4 | ||||||||||||||||||
Total revenue | 177,672 | 170,315 | 7,357 | 4.3 | 361,799 | 338,824 | 22,975 | 6.8 | ||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||||
Cost of revenue-fuel | 98,567 | 95,678 | (2,889 | ) | (3.0 | ) | 198,875 | 181,732 | (17,143 | ) | (9.4 | ) | ||||||||||||||
Cost of revenue-non-fuel | 4,563 | 3,785 | (778 | ) | (20.6 | ) | 10,130 | 9,033 | (1,097 | ) | (12.1 | ) | ||||||||||||||
Total cost of revenue | 103,130 | 99,463 | (3,667 | ) | (3.7 | ) | 209,005 | 190,765 | (18,240 | ) | (9.6 | ) | ||||||||||||||
Fuel gross profit | 40,814 | 38,969 | 1,845 | 4.7 | 81,831 | 78,628 | 3,203 | 4.1 | ||||||||||||||||||
Non-fuel gross profit | 33,728 | 31,883 | 1,845 | 5.8 | 70,963 | 69,431 | 1,532 | 2.2 | ||||||||||||||||||
Gross profit | 74,542 | 70,852 | 3,690 | 5.2 | 152,794 | 148,059 | 4,735 | 3.2 | ||||||||||||||||||
Selling, general and administrative expenses | 42,903 | 41,624 | (1,279 | ) | (3.1 | ) | 86,847 | 86,675 | (172 | ) | (0.2 | ) | ||||||||||||||
Depreciation and amortization | 13,860 | 22,524 | 8,664 | 38.5 | 27,675 | 36,343 | 8,668 | 23.9 | ||||||||||||||||||
Loss on disposal of assets | 327 | 1,225 | 898 | 73.3 | 327 | 1,225 | 898 | 73.3 | ||||||||||||||||||
Operating income | 17,452 | 5,479 | 11,973 | NM | 37,945 | 23,816 | 14,129 | 59.3 | ||||||||||||||||||
Interest expense, net(1) | (7,282 | ) | (11,361 | ) | 4,079 | 35.9 | (16,067 | ) | (21,554 | ) | 5,487 | 25.5 | ||||||||||||||
Other income (expense) | 64 | 50 | 14 | 28.0 | 48 | (177 | ) | 225 | 127.1 | |||||||||||||||||
(Provision) benefit for income taxes | (4,574 | ) | 2,335 | (6,909 | ) | NM | (9,284 | ) | (840 | ) | (8,444 | ) | NM | |||||||||||||
Net income (loss)(2) | 5,660 | (3,497 | ) | 9,157 | NM | 12,642 | 1,245 | 11,397 | NM | |||||||||||||||||
Reconciliation of net income (loss) to EBITDA excluding non-cash items: | ||||||||||||||||||||||||||
Net income (loss)(2) | 5,660 | (3,497 | ) | 12,642 | 1,245 | |||||||||||||||||||||
Interest expense, net(1) | 7,282 | 11,361 | 16,067 | 21,554 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 4,574 | (2,335 | ) | 9,284 | 840 | |||||||||||||||||||||
Depreciation and amortization | 13,860 | 22,524 | 27,675 | 36,343 | ||||||||||||||||||||||
Loss on disposal of assets | 47 | 1,153 | 47 | 1,153 | ||||||||||||||||||||||
Other non-cash (income) expenses | (88 | ) | (43 | ) | (229 | ) | 103 | |||||||||||||||||||
EBITDA excluding non-cash items | 31,335 | 29,163 | 2,172 | 7.4 | 65,486 | 61,238 | 4,248 | 6.9 | ||||||||||||||||||
EBITDA excluding non-cash items | 31,335 | 29,163 | 65,486 | 61,238 | ||||||||||||||||||||||
Interest expense, net(1) | (7,282 | ) | (11,361 | ) | (16,067 | ) | (21,554 | ) | ||||||||||||||||||
Interest rate swap breakage fees(1) | (252 | ) | (627 | ) | (500 | ) | (1,732 | ) | ||||||||||||||||||
Non-cash derivative gains recorded in interest expense(1) | (5,834 | ) | (2,305 | ) | (10,448 | ) | (6,073 | ) | ||||||||||||||||||
Amortization of debt financing costs(1) | 671 | 740 | 1,359 | 1,481 | ||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred
taxes |
(768 | ) | (121 | ) | (975 | ) | (616 | ) | ||||||||||||||||||
Changes in working capital | 305 | (3,085 | ) | 645 | (2,862 | ) | ||||||||||||||||||||
Cash provided by operating activities | 18,175 | 12,404 | 39,500 | 29,882 | ||||||||||||||||||||||
Changes in working capital | (305 | ) | 3,085 | (645 | ) | 2,862 | ||||||||||||||||||||
Maintenance capital expenditures | (3,236 | ) | (2,193 | ) | (5,112 | ) | (3,029 | ) | ||||||||||||||||||
Free cash flow | 14,634 | 13,296 | 1,338 | 10.1 | 33,743 | 29,715 | 4,028 | 13.6 | ||||||||||||||||||
_____________________ | ||
NM - Not meaningful | ||
(1) |
Interest expense, net, includes non-cash gains on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
|
(2) |
Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. |
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||||||||||||||
RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA | ||||||||||||||||||||||||||
EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||||||||||||||||||||
/-----------------------------------For the Quarter Ended June 30, 2012--------------------------/ | ||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% |
The Gas |
District |
Atlantic |
MIC |
Proportionately |
IMTT |
District |
||||||||||||||||||
Net income (loss) attributable to MIC LLC | 8,008 | 6,124 | 443 | 5,660 | (8,337 | ) | 11,898 | 16,016 | 886 | |||||||||||||||||
Interest expense (income), net(2) | 5,895 | 1,516 | 1,064 | 7,282 | (4 | ) | 15,753 | 11,790 | 2,127 | |||||||||||||||||
Provision for income taxes | 5,935 | 3,913 | 311 | 4,574 | 827 | 15,559 | 11,869 | 621 | ||||||||||||||||||
Depreciation | 8,174 | 1,697 | 839 | 5,860 | - | 16,570 | 16,348 | 1,677 | ||||||||||||||||||
Amortization of intangibles | 385 | 205 | 171 | 8,000 | - | 8,760 | 769 | 341 | ||||||||||||||||||
Loss on disposal of assets | - | - | - | 47 | - | 47 | - | - | ||||||||||||||||||
Base management fee paid in LLC interests | - | - | - | - | 4,760 | 4,760 | - | - | ||||||||||||||||||
Other non-cash expense (income) | 45 | 995 | 120 | (88 | ) | 827 | 1,899 | 90 | 240 | |||||||||||||||||
EBITDA excluding non-cash items | 28,441 | 14,450 | 2,947 | 31,335 | (1,927 | ) | 75,246 | 56,882 | 5,892 | |||||||||||||||||
EBITDA excluding non-cash items | 28,441 | 14,450 | 2,947 | 31,335 | (1,927 | ) | 75,246 | 56,882 | 5,892 | |||||||||||||||||
Interest (expense) income, net(2) | (5,895 | ) | (1,516 | ) | (1,064 | ) | (7,282 | ) | 4 | (15,753 | ) | (11,790 | ) | (2,127 | ) | |||||||||||
Interest rate swap breakage fees(2) | - | - | - | (252 | ) | - | (252 | ) | - | - | ||||||||||||||||
Non-cash derivative losses (gains) recorded in interest expense, net(2) | 1,158 | (832 | ) | (283 | ) | (5,834 | ) | - | (5,791 | ) | 2,316 | (566 | ) | |||||||||||||
Amortization of deferred finance charges(2) | 405 | 119 | 88 | 671 | - | 1,282 | 809 | 175 | ||||||||||||||||||
Equipment lease receivables, net | - | - | 436 | - | - | 436 | - | 872 | ||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (1,885 | ) | (2,205 | ) | (160 | ) | (768 | ) | 1,720 | (3,298 | ) | (3,769 | ) | (320 | ) | |||||||||||
Changes in working capital | 2,342 | (847 | ) | (24 | ) | 305 | (850 | ) | 926 | 4,683 | (47 | ) | ||||||||||||||
Cash provided by (used in) operating activities | 24,566 | 9,169 | 1,940 | 18,175 | (1,053 | ) | 52,796 | 49,131 | 3,879 | |||||||||||||||||
Changes in working capital | (2,342 | ) | 847 | 24 | (305 | ) | 850 | (926 | ) | (4,683 | ) | 47 | ||||||||||||||
Maintenance capital expenditures | (3,668 | ) | (1,421 | ) | (39 | ) | (3,236 | ) | - | (8,363 | ) | (7,335 | ) | (77 | ) | |||||||||||
Free cash flow | 18,557 | 8,595 | 1,925 | 14,634 | (203 | ) | 43,507 | 37,113 | 3,849 | |||||||||||||||||
/-----------------------------------For the Quarter Ended June 30, 2011--------------------------/ | ||||||||||||||||||||||||||
($ in Thousands) (Unaudited) |
IMTT 50% |
The Gas |
District |
Atlantic |
MIC |
Proportionately |
IMTT |
District |
||||||||||||||||||
Net income (loss) attributable to MIC LLC from continuing operations | 4,467 | 3,273 | (463 | ) | (3,497 | ) | (4,610 | ) | (831 | ) | 8,933 | (926 | ) | |||||||||||||
Interest expense, net(2) | 8,156 | 3,483 | 2,463 | 11,361 | - | 25,462 | 16,311 | 4,925 | ||||||||||||||||||
Provision (benefit) for income taxes | 2,952 | 2,310 | (325 | ) | (2,335 | ) | 187 | 2,789 | 5,903 | (650 | ) | |||||||||||||||
Depreciation | 7,915 | 1,596 | 829 | 7,027 | - | 17,367 | 15,829 | 1,658 | ||||||||||||||||||
Amortization of intangibles | 266 | 206 | 171 | 15,497 | - | 16,139 | 531 | 341 | ||||||||||||||||||
Loss on sale of assets | - | - | - | 1,153 | - | 1,153 | - | - | ||||||||||||||||||
Base management fee paid in LLC interests | - | - | - | - | 4,156 | 4,156 | - | - | ||||||||||||||||||
Other non-cash (income) expense | (23 | ) | 512 | 150 | (43 | ) | (1,528 | ) | (932 | ) | (46 | ) | 300 | |||||||||||||
EBITDA excluding non-cash items | 23,731 | 11,380 | 2,824 | 29,163 | (1,795 | ) | 65,303 | 47,461 | 5,648 | |||||||||||||||||
EBITDA excluding non-cash items | 23,731 | 11,380 | 2,825 | 29,163 | (1,795 | ) | 65,303 | 47,461 | 5,648 | |||||||||||||||||
Interest expense, net(2) | (8,156 | ) | (3,483 | ) | (2,463 | ) | (11,361 | ) | - | (25,462 | ) | (16,311 | ) | (4,925 | ) | |||||||||||
Interest rate swap breakage fees(2) | - | - | - | (627 | ) | - | (627 | ) | - | - | ||||||||||||||||
Non-cash derivative losses (gains) recorded in interest expense, net(2) | 3,820 | 1,173 | 1,152 | (2,305 | ) | - | 3,840 | 7,640 | 2,304 | |||||||||||||||||
Amortization of deferred finance charges(2) | 404 | 120 | 85 | 740 | - | 1,349 | 807 | 170 | ||||||||||||||||||
Equipment lease receivables, net | - | - | 377 | - | - | 377 | - | 753 | ||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | 152 | (1,260 | ) | 115 | (121 | ) | 955 | (159 | ) | 304 | 230 | |||||||||||||||
Changes in working capital | (7,240 | ) | (2,034 | ) | (571 | ) | (3,085 | ) | (753 | ) | (13,683 | ) | (14,479 | ) | (1,142 | ) | ||||||||||
Cash provided by (used in) operating activities | 12,711 | 5,896 | 1,519 | 12,404 | (1,593 | ) | 30,937 | 25,422 | 3,038 | |||||||||||||||||
Changes in working capital | 7,240 | 2,034 | 571 | 3,085 | 753 | 13,683 | 14,479 | 1,142 | ||||||||||||||||||
Maintenance capital expenditures | (6,503 | ) | (1,660 | ) | (30 | ) | (2,193 | ) | - | (10,385 | ) | (13,005 | ) | (59 | ) | |||||||||||
Free cash flow | 13,448 | 6,270 | 2,061 | 13,296 | (840 | ) | 34,235 | 26,896 | 4,121 | |||||||||||||||||
|
___________________________ |
||
(1) | Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. | |
(2) | Interest (expense) income, net, includes non-cash (losses) gains on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
/-------------------------------------For the Six Months Ended June 30, 2012-------------------------------------/ | ||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% |
The Gas |
District |
Atlantic |
MIC Corporate |
Proportionately |
IMTT |
District |
||||||||||||||||||
Net income (loss) attributable to MIC LLC | 18,713 | 11,866 | 436 | 12,642 | (16,456 | ) | 27,201 | 37,425 | 872 | |||||||||||||||||
Interest expense (income), net(2) | 9,191 | 3,407 | 2,228 | 16,067 | (4 | ) | 30,889 | 18,381 | 4,456 | |||||||||||||||||
Provision (benefit) for income taxes | 13,118 | 7,712 | 306 | 9,284 | (1,151 | ) | 29,269 | 26,236 | 611 | |||||||||||||||||
Depreciation | 16,257 | 3,432 | 1,676 | 11,676 | - | 33,040 | 32,513 | 3,351 | ||||||||||||||||||
Amortization of intangibles | 756 | 411 | 341 | 15,999 | - | 17,507 | 1,511 | 682 | ||||||||||||||||||
Loss on disposal of assets |
- | - | - | 47 | 47 | - | - | |||||||||||||||||||
Base management fee paid in LLC interests | - | - | - | - | 9,755 | 9,755 | - | - | ||||||||||||||||||
Other non-cash expense (income) | 139 | 1,802 | 135 | (229 | ) | 883 | 2,730 | 278 | 269 | |||||||||||||||||
EBITDA excluding non-cash items | 58,172 | 28,630 | 5,122 | 65,486 | (6,973 | ) | 150,437 | 116,344 | 10,241 | |||||||||||||||||
EBITDA excluding non-cash items | 58,172 | 28,630 | 5,122 | 65,486 | (6,973 | ) | 150,437 | 116,344 | 10,241 | |||||||||||||||||
Interest (expense) income, net(2) | (9,191 | ) | (3,407 | ) | (2,228 | ) | (16,067 | ) | 4 | (30,889 | ) | (18,381 | ) | (4,456 | ) | |||||||||||
Interest rate swap breakage fees(2) | - | - | - | (500 | ) | - | (500 | ) | - | - | ||||||||||||||||
Non-cash derivative gains recorded in interest expense, net(2) | (182 | ) | (1,297 | ) | (435 | ) | (10,448 | ) | - | (12,361 | ) | (363 | ) | (869 | ) | |||||||||||
Amortization of deferred finance charges(2) | 807 | 239 | 173 | 1,359 | - | 2,578 | 1,614 | 345 | ||||||||||||||||||
Equipment lease receivables, net | - | - | 855 | - | - | 855 | - | 1,710 | ||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (4,302 | ) | (4,375 | ) | (137 | ) | (975 | ) | 3,297 | (6,491 | ) | (8,603 | ) | (273 | ) | |||||||||||
Changes in working capital | 6,149 | (3,705 | ) | (936 | ) | 645 | (2,839 |
) |
(686 | ) | 12,298 | (1,872 | ) | |||||||||||||
Cash provided by (used in) operating activities | 51,455 | 16,085 | 2,413 | 39,500 | (6,511 | ) | 102,942 | 102,909 | 4,826 | |||||||||||||||||
Changes in working capital | (6,149 | ) | 3,705 | 936 | (645 | ) | 2,839 | 686 | (12,298 | ) | 1,872 | |||||||||||||||
Maintenance capital expenditures | (7,727 | ) | (3,185 | ) | (82 | ) | (5,112 | ) | - | (16,106 | ) | (15,453 | ) | (164 | ) | |||||||||||
Free cash flow | 37,579 | 16,605 | 3,268 | 33,743 | (3,672 | ) | 87,523 | 75,158 | 6,534 | |||||||||||||||||
/-------------------------------------For the Six Months Ended June 30, 2011-------------------------------------/ | ||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT 50% |
The Gas |
District |
Atlantic |
MIC Corporate |
Proportionately |
IMTT |
District |
||||||||||||||||||
Net income (loss) attributable to MIC LLC | 14,012 | 7,703 | (711 | ) | 1,245 | (10,483 | ) | 11,765 | 28,023 | (1,422 | ) | |||||||||||||||
Interest expense (income), net(2) | 10,497 | 5,497 | 3,593 | 21,554 | (1 | ) | 41,140 | 20,994 | 7,184 | |||||||||||||||||
Provision (benefit) for income taxes | 9,724 | 5,212 | (499 | ) | 840 | 1,443 | 16,720 | 19,447 | (997 | ) | ||||||||||||||||
Depreciation | 15,488 | 3,163 | 1,653 | 12,670 | - | 32,973 | 30,975 | 3,305 | ||||||||||||||||||
Amortization of intangibles | 530 | 412 | 339 | 23,673 | - | 24,954 | 1,060 | 678 | ||||||||||||||||||
Loss on disposal of assets |
- | - | - | 1,153 | - | 1,153 | - | - | ||||||||||||||||||
Base management fee paid in LLC interests | - | - | - | - | 7,788 | 7,788 | - | - | ||||||||||||||||||
Other non-cash (income) expense | (27 | ) | 1,182 | 169 | 103 | (1,936 | ) | (509 | ) | (54 | ) | 338 | ||||||||||||||
EBITDA excluding non-cash items | 50,223 | 23,169 | 4,544 | 61,238 | (3,189 | ) | 135,984 | 100,445 | 9,086 | |||||||||||||||||
EBITDA excluding non-cash items | 50,223 | 23,169 | 4,544 | 61,238 | (3,189 | ) | 135,984 | 100,445 | 9,086 | |||||||||||||||||
Interest (expense) income, net(2) | (10,497 | ) | (5,497 | ) | (3,593 | ) | (21,554 | ) | 1 | (41,140 | ) | (20,994 | ) | (7,184 | ) | |||||||||||
Interest rate swap breakage fees(2) | - | - | - | (1,732 | ) | - | (1,732 | ) | - | - | ||||||||||||||||
Non-cash derivative losses (gains) recorded in interest expense, net (2) | 1,654 | 897 | 972 | (6,073 | ) | - | (2,550 | ) | 3,308 | 1,943 | ||||||||||||||||
Amortization of deferred finance charges(2) | 809 | 239 | 170 | 1,481 | - | 2,699 | 1,618 | 340 | ||||||||||||||||||
Equipment lease receivables, net | - | - | 747 | - | - | 747 | - | 1,493 | ||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (3,792 | ) | (3,545 | ) | 93 | (616 | ) | 2,848 | (5,012 | ) | (7,584 | ) | 185 | |||||||||||||
Changes in working capital | (6,424 | ) | (6,449 | ) | 91 | (2,862 | ) | (3,113 | ) | (18,757 | ) | (12,847 | ) | 181 | ||||||||||||
Cash provided by (used in) operating activities | 31,973 | 8,814 | 3,023 | 29,882 | (3,453 | ) | 70,239 | 63,946 | 6,044 | |||||||||||||||||
Changes in working capital | 6,424 | 6,449 | (91 | ) | 2,862 | 3,113 | 18,757 | 12,847 | (181 | ) | ||||||||||||||||
Maintenance capital expenditures | (10,760 | ) | (3,920 | ) | (63 | ) | (3,029 | ) | - | (17,771 | ) | (21,519 | ) | (125 | ) | |||||||||||
Free cash flow | 27,637 | 11,343 | 2,870 | 29,715 | (340 | ) | 71,225 | 55,274 | 5,738 | |||||||||||||||||
___________________________ | ||
(1) | Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in each of its operating businesses and MIC Corporate. | |
(2) | Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees. |
CONTACT:
Investor enquiries
Jay A. Davis
Investor Relations
Macquarie
Infrastructure Company
(212) 231-1825
or
Media enquiries
Paula
Chirhart
Corporate Communications
Macquarie Infrastructure Company
(212)
231-1310