NEW YORK–(BUSINESS WIRE)–Macquarie Infrastructure Corporation (NYSE:MIC) announced that its Board of Directors has authorized the payment of a cash dividend for the third quarter of 2015 of $1.13 per share ($4.52 annualized). The payment represents an increase of 15.3% over the $0.98 per share paid following the third quarter of 2014.
The dividend will be paid on November 17, 2015 to shareholders of record on November 12, 2015. MIC has increased its cash dividend in each of the last eight quarters.
“We are again returning a substantial portion of the cash generated by our businesses to our shareholders. Including our third quarter dividend we will have distributed approximately 74% of our adjusted proportionately combined Free Cash Flow over the past year,” said James Hooke, chief executive officer of MIC. “Assuming the continued stable performance of our businesses through the remainder of the year, it appears likely that we will be able to deliver slightly more than our previously forecast 14% year-on-year growth in cash dividends in 2015 and we remain confident in our ability to generate dividend growth of at least 14% again in 2016.”
Among MIC’s four lines of business, its Atlantic Aviation subsidiary again delivered particularly strong results during the third quarter. The consistent growth in general aviation flight activity in the U.S. and volume of fuel sold per flight saw same store gross profit generated by Atlantic Aviation increase by 8.5% and 8.7% in the quarter and nine month periods ended September 30, 2015, respectively. The growth in reported gross profit, including acquisitions, was 9.2% and 15.4% in the quarter and nine month periods ended September 30, 2015, respectively.
Growth Opportunities
MIC’s Free Cash Flow in excess of the amount paid out as a dividend is available to finance further growth of the Company. Hooke indicated that MIC was actively pursuing potentially attractive investment opportunities across all four of its existing infrastructure verticals. “In addition to retained capital, MIC has access to more than $1.0 billion in undrawn committed debt facilities that can be tapped to fund acquisitions and growth projects,” said Hooke. “We believe that opportunities to expand our portfolio of renewable power assets and FBOs are growing and we remain very interested in developing our gas-fired power generation capabilities in Bayonne, NJ. Further, we have never been involved in more discussions about midstream assets than we are at present.”
On October 13, 2015, MIC completed the acquisition of an additional solar power generation facility. The facility, located on the island of Oahu in Hawaii, is expected to generate approximately 6.5 megawatts of renewable power when completed. MIC estimates that the facility will commence commercial operations in the middle of 2016.
Through September 30, 2015, MIC had deployed approximately $75.0 million in growth projects and small, bolt-on transactions. Including investments announced since quarter end, the total is in excess of $100.0 million. Management believes the Company will deploy growth capital and completed bolt-on acquisitions with a value in a range of between $225.0 million and $250.0 million for the full year 2015.
Hooke noted that the number and scale of growth opportunities for MIC in 2016 and beyond has increased over the past three months. “As we have indicated previously, we intend to deploy on average about $250.0 million per year in growth projects and small, accretive acquisitions,” he said. “Our backlog of growth projects is now in excess of $262.0 million with $85.0 million of this projected to be invested in the fourth quarter. These projects, together with a historically normal $100.0 million per year in bolt-on transactions and an expected $130.0 million of capital to be deployed in the expansion of BEC in 2017, provide us with visibility into our anticipated growth capital deployment for more than two years.”
Impact of Timing of Maintenance Capital Expenditures
“Our businesses continued to deliver stable performance,” added Hooke. “While our businesses performed well, maintenance capital expenditures and their treatment in connection with the acquisition of IMTT last year, together with the timing of expenditures at IMTT and Atlantic Aviation in 2015, have created challenges in comparing our quarter over quarter results in the third quarter.”
In the third quarter of 2014 IMTT deployed $11.2 million of maintenance capital compared with $12.0 million in the third quarter of 2015. In 2014, however, the majority of the third quarter expenditures were made prior to MIC’s acquisition of the second half of IMTT during which time MIC recorded IMTT’s results on a proportionately combined basis. As a result, MIC only reported $6.2 million as its share of IMTT’s maintenance capex in the third quarter of 2014.
As management had previously indicated, maintenance capital expenditures at IMTT in 2015 have been weighted to the second half of the year, in contrast with 2014 when they were weighted to the first half. IMTT deployed $8.5 million during the first half of 2015, $12.0 million in the third quarter and is expected to deploy approximately $20.0 million in the fourth quarter for a total of approximately $40.0 million for the full year. Overall, MIC expects IMTT’s total maintenance capital expenditures for 2015 to be approximately 10% lower than in 2014.
The reduced level of maintenance capital expenditures at IMTT, together with the strong operating performance at Atlantic Aviation, enabled MIC to opportunistically increase maintenance capital expenditures at Atlantic in 2015 as previously reported. In the third quarter Atlantic deployed $6.8 million versus $2.6 million in the third quarter of 2014. Similarly, Atlantic deployed $13.0 million on maintenance capital expenditures through the first nine months of 2015 compared with $4.6 million during the comparable period in 2014. While expenditures are expected to revert to historically normal levels in 2016, the increases in 2015 expenditures provide Atlantic Aviation with increased financial flexibility in the future.
“The timing of maintenance capital expenditures resulted in the generation of adjusted proportionately combined Free Cash Flow of $112.1 million or $1.41 per share – a good result and substantially above the consensus estimate of $1.30 per share,” Hooke noted. “However, removing the effect of maintenance capital expenditures at each of IMTT and Atlantic Aviation on our results reveals that what appears to be an approximately 3.0% year on year growth in adjusted proportionately combined Free Cash Flow per share is actually better than 9.0% per year in the third quarter and more than 24.0% through nine months versus the same period in 2014.”
Primary Drivers of Changes in Proportionately Combined Measures at September 30, 2015
Gross Profit – Gross profit increased 26.8% to $233.6 million for the quarter and 40.4% to $684.5 million for the nine month period. The increase was attributable to:
- Contribution from IMTT acquisition;
- Stable storage pricing and an increase in storage utilization at IMTT; partially offset by reduced tank heating and spill response activity in the first half of the year;
- Increases in general aviation flight activity and contributions from sites acquired by Atlantic Aviation during 2014 and 2015;
- Acquisitions of the Bayonne Energy Center in early 2015 and an additional wind power generating facility in late 2014 by CP&E, partially offset by the sale of District Energy in the third quarter of 2014; and,
- Increases in the volume of gas sold by Hawaii Gas in the first half of 2015.
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA), Excluding Non-Cash Items – EBITDA increased 45.6% to $160.3 million and 54.6% to $463.0 million in the quarter and nine month periods, respectively, primarily as a result of an increase in gross profit in both periods, offset by higher selling, general and administrative expenses in the nine month period, especially professional fees associated with various transactions in which the Company was involved. Selling, general and administrative expenses for the quarter decreased primarily due to the absence of acquisition related costs in 2015. The increase in selling, general and administrative expenses in nine months was attributable to:
- Consolidation of expenses of IMTT;
- Incremental costs associated with acquired gas fired power generation and wind power generation facilities;
- Higher labor and benefits, rent and professional services fees in the third quarter at Atlantic Aviation, and incremental expenses in the nine month period primarily related to the acquisition of additional FBOs;
- Higher professional services fees at Hawaii Gas in the third quarter related to intervention in the proposed Hawaiian Electric Industries/NextEra merger and ongoing efforts in relation to development of Liquefied Natural Gas (LNG) initiatives; and,
- Costs associated with the conversion of the Company from an LLC to a corporation in the nine month period; partially offset by,
- The absence of acquisition related costs; and,
- Improvements in cost control at IMTT and the absence of costs incurred in 2014 related to the IMTT acquisition.
Cash Interest – Excluding derivatives gains and losses, interest expense increased 21.5% to $27.4 million in the quarter and 53.9% to $81.8 million in the nine month period. The increase in cash interest expense was attributable to:
- The consolidation of IMTT;
- Incremental debt associated with acquisitions of wind power facilities and BEC, including interest on holding company revolving credit facility; and,
- Interest expense associated with convertible senior notes issued in July of 2014.
Cash Taxes – Cash taxes decreased 86.3% to $150,000 and 96.7% to $598,000 in the quarter and nine month periods, respectively, primarily as a result of the inclusion of IMTT in MIC’s consolidated tax group. As a result of an increase in deductible expenses, primarily performance fees, MIC does not expect to incur a material federal income tax liability until late 2019 at the earliest.
Maintenance Capital Expenditures – Maintenance capital expenditures increased 94.2% to $20.8 million in the quarter and 27.8% to $38.3 million in the nine month period. The increase was attributable to:
- Higher maintenance capital expenditures at Atlantic Aviation as a result of a decision to pull certain expenses forward (based on the better than expected performance of the business and reduced expenditures at IMTT);
- An increase in maintenance capital expenditures at IMTT in the third quarter resulting from a weighting of the deployments of capital to the second half of 2015.
Free Cash Flow – Free Cash Flow increased 85.9% to $92.8 million in the quarter and 70.1% to $291.8 million for the nine month period as a primarily as a result of the consolidation of IMTT, and the acquisitions BEC and wind power generation facilities, together with improved results generally. Adjusted proportionately combined Free Cash Flow increased 20.4% to $112.1 million in the quarter and 63.7% to $351.6 million in the year to date period. Adjusted proportionately combined Free Cash Flow excludes:
- $19.2 million and $50.6 million of swap breakage costs in the quarter and nine month periods in 2015, respectively;
- As a result of the successful refinancing of the majority of the debt across its businesses, MIC believes that swap breakage fees incurred over the next several years, if any, will be minimal;
- $9.3 million of transaction expenses related to BEC primarily in the first half of 2015; and,
- $43.3 million of transaction expenses and voluntary pension contributions primarily related to IMTT in the third quarter of 2014.
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 consolidated Free Cash Flow generated by MIC’s businesses other than its interests in the partnerships in solar and wind power generation, after holding company costs. See “Use of Non-GAAP Measures” below for MIC’s definition of Free Cash Flow and further information.
MIC’s reported increase in adjusted Free Cash Flow was partially offset on a per share basis by an increase in the number of shares outstanding. The increase in share count reflects the impact of capital raised in connection with the acquisitions of IMTT and BEC and the reinvestment in shares of base and a portion of the performance fees earned by the Company’s Manager during the twelve months ended September 30, 2015. No performance fee was payable for the third quarter of 2015.
Consolidated Results for the Third Quarter and Nine Months
Reported net income attributable to MIC was $10.6 million for the third quarter of 2015 compared with net income of $991.0 million in the third quarter of 2014. For the nine months ended September 30, 2015, MIC reported a net loss of $141.5 million compared with net income of $1.0 billion in the comparable period in 2014. The substantial net income generated in each of the third quarter and nine month periods in 2014 reflect primarily a non-cash gain from acquisition/sale of business related to the IMTT acquisition and the sale of the district energy business, partially offset by a $116.6 million performance fee incurred during the third quarter, the consolidation of IMTT and the acquisitions of a wind power generation facility.
MIC’s consolidated revenue for the third quarter of 2015 rose 7.0% to $415.7 million compared with the third quarter in 2014. Consolidated revenue increased 30.9% for the nine-month period ended September 30, 2015 versus the comparable period in 2014. The increases reflect the contribution from acquisitions concluded during the past year, and growth in the volume of products sold, partially offset by a reduction in energy costs, such as those for aviation fuel, which are generally passed through to customers of MIC’s businesses and recovered in revenue.
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 increased 29.6% to $236.3 million in the third quarter of 2015 compared with the same period in 2014. For the nine months ended September 30, 2015, the Company’s gross profit increased 68.8% versus the comparable period in 2014. The increases in both periods reflect primarily the impact of acquisitions concluded in each of 2014 and 2015 and contributions resulting from growth at Atlantic Aviation, partially offset by the sale of District Energy in August 2014.
MIC’s increase in consolidated operating income for the quarter reflects primarily the absence of a performance fee in the third quarter of 2015, the consolidation of IMTT and acquisitions of BEC and wind power generation facilities, reduced professional fees resulting from fewer transactions, and increases in depreciation and amortization primarily related to acquisitions concluded during the preceding year. The operating loss for the nine months ended September 30, 2015 reflects the impact of the items above entirely offset by increased performance fees incurred in the first six months of 2015.
Use of Non-GAAP Measures
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 may include impairments, gains and losses on derivatives and adjustments for certain other items reflected in the statement of operations. EBITDA excluding non-cash items also excludes any base management and performance fees, if any, whether paid in cash or stock.
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 into their ability to service or reduce debt, fund capital expenditures and/or support distributions to the holding company.
MIC also reports Free Cash Flow and Proportionately Combined Free Cash Flow, as defined below, on both a consolidated and an 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, which includes cash paid for interest, taxes and pension contributions, less maintenance capital expenditures, including principal repayments on capital lease obligations used to fund maintenance capital expenditures, and excludes changes in working capital.
Free Cash Flow does not fully reflect MIC’s ability to freely deploy generated cash, as it does not reflect required payments on indebtedness 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 should be used as a supplemental measure and not in lieu of MIC’s financial results as reported under GAAP.
MIC may report certain financial metrics on a proportionately combined basis including proportionately combined gross profit, proportionately combined EBITDA excluding non-cash items, proportionately combined cash interest, proportionately combined cash taxes, proportionately combined maintenance capital expenditures, proportionately combined Free Cash Flow including adjusted proportionately combined Free Cash Flow, proportionately combined Free Cash Flow per share, proportionately combined growth capital expenditures and proportionately combined net debt. The Company believes that such measures provide investors and management with additional insight into the financial results and cash generated on the basis of its varied ownership interests in its businesses and investments for the reporting periods.
Proportionately combined metrics used by MIC may be calculated in a different manner by other companies and may limit their usefulness as a comparative measure. Proportionately combined metrics should be used as a supplement to and not in lieu of financial results reported in accordance with GAAP.
The following tables summarize MIC’s financial performance on a proportionately combined basis for the quarter and nine-month periods ended September 30, 2015, and for the prior comparable periods.
For the Quarter Ended September 30, 2015 |
||||||||||||||||||||||||
IMTT
100%(1) |
Atlantic Aviation |
Contracted Power and Energy(2) |
Hawaii Gas | MIC Corporate |
Proportionately Combined(3) |
Contracted Power and Energy 100% |
||||||||||||||||||
Gross profit | 79,446 | 102,028 | 33,910 | 18,245 | N/A | 233,629 | 36,602 | |||||||||||||||||
EBITDA excluding non-cash items | 72,861 | 50,603 | 25,270 | 12,699 | (1,147) | 160,286 | 27,692 | |||||||||||||||||
Free cash flow | 50,610 | 36,271 | 1,040 | 9,121 | (4,256) | 92,786 | 2,577 | |||||||||||||||||
For the Quarter Ended September 30, 2014 |
||||||||||||||||||||||||
IMTT
50%(4) |
IMTT
100%(1) |
Atlantic Aviation |
Contracted Power and Energy(2) |
Hawaii Gas | MIC Corporate |
Proportionately Combined(3) |
IMTT
100%(5) |
Contracted Power and Energy 100% |
||||||||||||||||
Gross profit | 4,708 | 63,414 | 93,437 | 4,998 | 17,748 | N/A | 184,305 | 72,830 | 7,748 | |||||||||||||||
EBITDA excluding non-cash items | 4,258 | 52,836 | 44,285 | 4,316 | 13,189 | (8,799) | 110,085 | 61,352 | 7,546 | |||||||||||||||
Free cash flow | (6,203) | 26,367 | 33,762 | 2,435 | 8,546 | (15,008) | 49,899 | 13,962 | 4,645 | |||||||||||||||
For the Nine Months Ended September 30, 2015 |
||||||||||||||||||||||||
IMTT
100%(1) |
Atlantic Aviation |
Contracted Power and Energy(2) |
Hawaii
Gas |
MIC Corporate |
Proportionately Combined(3) |
Contracted Power and Energy 100% |
||||||||||||||||||
Gross profit | 245,248 | 308,203 | 68,977 | 62,077 | N/A | 684,505 | 76,772 | |||||||||||||||||
EBITDA excluding non-cash items | 226,913 | 155,568 | 42,520 | 45,442 | (7,411) | 463,032 | 49,422 | |||||||||||||||||
Free cash flow | 146,685 | 119,927 | 5,496 | 35,728 | (16,054) | 291,782 | 9,607 | |||||||||||||||||
For the Nine Months Ended September 30, 2014 |
||||||||||||||||||||||||
IMTT
50%(4) |
IMTT
100%(1) |
Atlantic Aviation |
Contracted Power and Energy(2) |
Hawaii Gas | MIC Corporate |
Proportionately Combined(3) |
IMTT
100%(5) |
Contracted Power and Energy 100% |
||||||||||||||||
Gross profit | 85,727 | 63,414 | 267,106 | 14,245 | 57,120 | N/A | 487,612 | 234,867 | 22,558 | |||||||||||||||
EBITDA excluding non-cash items | 78,712 | 52,836 | 123,737 | 12,738 | 43,160 | (11,703) | 299,480 | 210,260 | 22,066 | |||||||||||||||
Free cash flow | 31,324 | 26,367 | 95,993 | 6,175 | 24,962 | (13,303) | 171,518 | 89,015 | 11,468 | |||||||||||||||
_____________________ |
N/A- Not applicable. |
(1) Represents our 100% ownership interest in IMTT subsequent to July 16, 2014. IMTT owns 66.7% of its Quebec marine terminal in Canada. The remainder is owned by one other party. IMTT consolidates the results of the Quebec terminal in its financial statements and adjusts the portion that it does not own through noncontrolling interest. The above table shows 100% of IMTT, including the 33.3% portion of the Quebec terminal that it does not own, which is not significant. Both MIC’s and IMTT’s EBITDA excluding non-cash items and Free Cash Flow reflects 100% of the results of the Quebec terminal. |
(2) Proportionately combined Free Cash Flow for Contracted Power and Energy is equal to MIC’s controlling ownership interest in its solar and wind power generation businesses and the district energy business, up to August 21, 2014, date of sale. As of April 1, 2015, Contracted Power and Energy also includes 100% of BEC, a gas-fired power generation facility. |
(3) 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. |
(4) Our proportionate interest in IMTT prior to the acquisition of the remaining 50% interest on July 16, 2014. |
(5) Represents 100% of IMTT as a stand-alone business. |
Factors Effecting Business Performance
International Matex Tank Terminals
- Revenue increased in the third quarter versus the prior comparable period as a result of increased spill response activity at OMI Environmental Services Inc., stable contracted storage pricing and higher utilization rates.
- Capacity utilization remained at historically normal levels of 94.7% and 94.8% at the end of the third quarter and nine month periods, respectively.
- Continued volatility in commodity prices resulted in a renewal of storage contracts with shorter durations.
Atlantic Aviation
- Atlantic Aviation entered into an agreement to develop a new FBO at Salt Lake City International Airport in Salt Lake City, UT and, in a separate agreement, sold its FBO at Hartford-Brainard airport near Hartford, CT. The transactions were consistent with past practices at Atlantic whereby the business has exited certain markets in favor of reinvesting in markets it believes have superior growth prospects.
- The weighted average remaining lease life across the portfolio of FBOs decreased to 19.0 years in the third quarter from 19.3 years in the prior comparable period as a result of the passage of time, partially offset by lease renewals with durations greater than the average.
- The Federal Aviation Administration reported an increase in general aviation flight activity of 1.1% in the third quarter of 2015 versus the prior comparable period led by a 2.3% increase in domestic take-offs and landings. Both figures were consistent with trends that have been in evidence since the first quarter in 2009.
- Acquisitions of seven FBOs since April 30, 2015 helped drive increased activity more broadly and contributed to same store (excluding the acquisitions) growth in gross profit of 8.5% and 8.7% in the quarter and year to date 2015 periods, respectively.
Contracted Power and Energy Segment
- The performance of the solar and wind portions of the CP&E segment was consistent with reduced levels of solar and wind resources in the western half of the U.S. in 2015 compared with 2014 although resource levels were not outside of historically normal ranges.
Hawaii Gas
- The volume of gas sold by Hawaii Gas was flat year over year in the third quarter and increased 2.5% through nine months compared with the same periods in 2014 as a result of continued growth in commercial consumption primarily related to tourism.
- Excluding the impact of unrealized gains/(losses) on commodity hedges, gross profit per therm decreased slightly for the quarter and increased 5.7% for the nine months versus the prior comparable periods.
Corporate and Other
- Fees were lower in third quarter of 2015 versus the prior comparable period as result of no performance fee being generated in 2015.
- Fees were higher through nine months primarily as a result of performance fees generated in the first two quarters of 2015.
- Selling, general and administrative costs were lower in both the quarter and nine month periods ended September 30, 2015 as professional service fees, primarily those associated with acquisitions decreased versus the comparable periods in 2014.
- Interest expense was higher in the quarter and nine month periods primarily as a result of the holding company convertible notes being outstanding from July 16, 2014.
Conference Call and WEBCAST
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Tuesday, November 3, 2015 during which it will review the Company’s results and answer questions from analysts and investors.
How: To listen to the conference call, please dial +1(650) 521-5252 or +1(877) 852-2928 at least 10 minutes prior to the scheduled start time. A webcast of the call will be accessible via the MIC 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: MIC 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 November 3, 2015 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 November 3, 2015 through midnight on November 10, 2015, at +1(404) 537-3406, or +1(855) 859-2056 Passcode: 71530591. An online archive of the webcast will be available on the MIC website for one year following the call. MIC-G
About Macquarie Infrastructure Corporation
Macquarie Infrastructure Corporation owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, a gas processing and distribution business, Hawaii Gas, and several entities comprising a Contracted Power and Energy segment. MIC is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Corporation 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 Corporation 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 Corporation.
MACQUARIE INFRASTRUCTURE CORPORATION | ||||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||||
($ in Thousands, Except Share Data) | ||||||||||||
September 30,
2015 |
December 31,
2014 |
|||||||||||
(Unaudited) | ||||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 110,339 | $ | 48,014 | ||||||||
Restricted cash | 14,391 | 21,282 | ||||||||||
Accounts receivable, less allowance for doubtful accounts | ||||||||||||
of $1,576 and $771, respectively | 107,270 | 96,885 | ||||||||||
Inventories | 31,249 | 28,080 | ||||||||||
Prepaid expenses | 17,241 | 14,276 | ||||||||||
Deferred income taxes | 25,412 | 25,412 | ||||||||||
Other | 25,180 | 22,941 | ||||||||||
Total current assets | 331,082 | 256,890 | ||||||||||
Property, equipment, land and leasehold improvements, net | 4,028,269 | 3,362,585 | ||||||||||
Investment in unconsolidated business | 8,609 | 9,773 | ||||||||||
Goodwill | 2,020,125 | 1,996,259 | ||||||||||
Intangible assets, net | 943,326 | 959,634 | ||||||||||
Deferred financing costs, net of accumulated amortization | 49,015 | 32,037 | ||||||||||
Other | 12,126 | 8,010 | ||||||||||
Total assets | $ | 7,392,552 | $ | 6,625,188 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Due to manager – related party | $ | 73,875 | $ | 4,858 | ||||||||
Accounts payable | 55,290 | 49,733 | ||||||||||
Accrued expenses | 81,444 | 77,248 | ||||||||||
Current portion of long-term debt | 33,174 | 27,655 | ||||||||||
Fair value of derivative instruments | 20,911 | 32,111 | ||||||||||
Other | 34,965 | 32,727 | ||||||||||
Total current liabilities | 299,659 | 224,332 | ||||||||||
Long-term debt, net of current portion | 2,793,136 | 2,364,866 | ||||||||||
Deferred income taxes | 821,158 | 904,108 | ||||||||||
Fair value of derivative instruments | 24,355 | 27,724 | ||||||||||
Tolling agreements – noncurrent | 70,094 | – | ||||||||||
Other | 142,724 | 133,990 | ||||||||||
Total liabilities | 4,151,126 | 3,655,020 | ||||||||||
Commitments and contingencies | – | – | ||||||||||
MACQUARIE INFRASTRUCTURE CORPORATION | ||||||||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS (CONTINUED) |
||||||||||||||||
($ in Thousands, Except Share Data) | ||||||||||||||||
September 30,
2015 |
December 31,
2014 |
|||||||||||||||
(Unaudited) | ||||||||||||||||
Stockholders’ equity: |
|
|||||||||||||||
Preferred stock ($0.001 par value; 100,000,000 authorized; no shares issued and outstanding at September 30, 2015)(1); |
$ | – | $ | – | ||||||||||||
Special stock ($0.001 par value; 100 authorized; 100 shares issued and outstanding at September 30, 2015)(1); |
– | – | ||||||||||||||
Common stock ($0.001 par value; 500,000,000 authorized; 79,778,682 shares issued and outstanding at September 30, 2015)(1); |
80 | – | ||||||||||||||
LLC interests (no par value; 71,089,590 LLC interests issued and outstanding at December 31, 2014)(1); |
– | 1,942,745 | ||||||||||||||
Additional paid in capital(1) | 2,390,074 | 21,447 | ||||||||||||||
Accumulated other comprehensive loss | (26,084 | ) | (21,550 | ) | ||||||||||||
Retained earnings | 703,061 | 844,521 | ||||||||||||||
Total stockholders’ equity | 3,067,131 | 2,787,163 | ||||||||||||||
Noncontrolling interests | 174,295 | 183,005 | ||||||||||||||
Total equity | 3,241,426 | 2,970,168 | ||||||||||||||
Total liabilities and equity | $ | 7,392,552 | $ | 6,625,188 | ||||||||||||
_________________ |
(1) See Note 9, “Stockholders’ Equity”, for discussions on preferred stock, special stock, common stock, LLC interests and additional paid in capital. |
MACQUARIE INFRASTRUCTURE CORPORATION | ||||||||||||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
($ in Thousands, Except Share and Per Share Data) | ||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
|||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Service revenue | $ | 319,827 | $ | 317,915 | $ | 973,638 | $ | 725,623 | ||||||||||||||||||
Product revenue | 95,882 | 70,344 | 264,258 | 218,317 | ||||||||||||||||||||||
Financing and equipment lease income | – | 379 | – | 1,836 | ||||||||||||||||||||||
Total revenue | 415,709 | 388,638 | 1,237,896 | 945,776 | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||
Cost of services | 138,353 | 158,476 | 420,187 | 386,927 | ||||||||||||||||||||||
Cost of product sales | 41,035 | 47,815 | 125,409 | 148,651 | ||||||||||||||||||||||
Selling, general and administrative | 73,901 | 77,497 | 225,618 | 189,797 | ||||||||||||||||||||||
Fees to manager – related party | 18,118 | 130,501 | 337,950 | 153,990 | ||||||||||||||||||||||
Depreciation | 53,070 | 35,958 | 162,293 | 60,540 | ||||||||||||||||||||||
Amortization of intangibles | 17,783 | 11,369 | 83,656 | 29,590 | ||||||||||||||||||||||
Loss from customer contract termination | – | 1,269 | – | 1,269 | ||||||||||||||||||||||
Loss on disposal of assets | 323 | 20 | 972 | 886 | ||||||||||||||||||||||
Total operating expenses | 342,583 | 462,905 | 1,356,085 | 971,650 | ||||||||||||||||||||||
Operating income (loss) | 73,126 | (74,267 | ) | (118,189 | ) | (25,874 | ) | |||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||
Dividend income | 270 | 257 | 1,068 | 257 | ||||||||||||||||||||||
Interest income | 21 | 10 | 34 | 105 | ||||||||||||||||||||||
Interest expense(1) | (54,761 | ) | (16,566 | ) | (108,624 | ) | (48,522 | ) | ||||||||||||||||||
Loss on extinguishment of debt | – | (90 | ) | – | (90 | ) | ||||||||||||||||||||
Equity in earnings and amortization charges of investee | – | 993 | – | 26,079 | ||||||||||||||||||||||
Gain from acquisition/divestiture of businesses(2) | – | 1,027,054 | – | 1,027,054 | ||||||||||||||||||||||
Other income, net | 825 | 821 | 2,296 | 3,078 | ||||||||||||||||||||||
Net income (loss) before income taxes | 19,481 | 938,212 | (223,415 | ) | 982,087 | |||||||||||||||||||||
(Provision) benefit for income taxes(3) | (11,139 | ) | 52,462 | 77,725 | 38,491 | |||||||||||||||||||||
Net income (loss) | $ | 8,342 | $ | 990,674 | $ | (145,690 | ) | $ | 1,020,578 | |||||||||||||||||
Less: net loss attributable to noncontrolling interests | (2,296 | ) | (319 | ) | (4,230 | ) | (481 | ) | ||||||||||||||||||
Net income (loss) attributable to MIC | $ | 10,638 | $ | 990,993 | $ | (141,460 | ) | $ | 1,021,059 | |||||||||||||||||
Basic income (loss) per common stock attributable to MIC | $ | 0.13 | $ | 14.57 | $ | (1.83 | ) | $ | 16.92 | |||||||||||||||||
Weighted average number of common stock outstanding: basic | 79,625,436 | 68,005,171 | 77,364,257 | 60,354,086 | ||||||||||||||||||||||
Diluted income (loss) per common stock attributable to MIC | $ | 0.13 | $ | 13.87 | $ | (1.83 | ) | $ | 16.61 | |||||||||||||||||
Weighted average number of common stock outstanding: diluted | 80,343,329 | 71,517,497 | 77,364,257 | 61,546,181 | ||||||||||||||||||||||
Cash dividends declared per common stock | $ | 1.13 | $ | 0.98 | $ | 3.31 | $ | 2.8675 | ||||||||||||||||||
_________________ |
(1) Interest expense includes losses on derivative instruments of $30.1 million and $39.9 million for the quarter and nine months ended September
30, 2015, respectively. For the quarter and nine months ended September 30, 2014, interest expense includes gains on derivative instruments of $820,000 and losses on derivative instruments of $13.1 million, respectively, of which net losses of $348,000 and $856,000, respectively, were reclassified from accumulated other comprehensive loss. |
(2) Gain from acquisition/divestiture of businesses represents the gain of $948.1 million from IMTT Acquisition from the remeasuring to fair
value of the Company’s previous 50% ownership interest and the gain of $78.9 million from the sale of the Company’s interest in the district energy business. |
(3) Includes $138,000 and $340,000 of benefit for income taxes from accumulated other comprehensive loss reclassifications for the quarter and
nine months ended September 30, 2014, respectively. |
MACQUARIE INFRASTRUCTURE CORPORATION | ||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
(Unaudited) | ||||||||||||
($ in Thousands) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, 2015 |
September 30, 2014 |
|||||||||||
Operating activities | ||||||||||||
Net (loss) income | $ | (145,690 | ) | $ | 1,020,578 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of property and equipment | 162,293 | 64,914 | ||||||||||
Amortization of intangible assets | 83,656 | 29,590 | ||||||||||
Loss on disposal of assets | 810 | 822 | ||||||||||
Loss from customer contract termination | – | 1,269 | ||||||||||
Equity in earnings and amortization charges of investee | – | (26,079 | ) | |||||||||
Equity distributions from investee | – | 25,086 | ||||||||||
Gain from acquisition/divestiture of businesses | – | (1,027,181 | ) | |||||||||
Amortization of debt financing costs | 6,757 | 4,467 | ||||||||||
Loss on extinguishment of debt | – | 90 | ||||||||||
Adjustments to derivative instruments | (36,079 | ) | (3,937 | ) | ||||||||
Fees to manager- related party | 270,130 | 88,990 | ||||||||||
Equipment lease receivable, net | – | 2,805 | ||||||||||
Deferred rent | 668 | 293 | ||||||||||
Deferred taxes | (78,323 | ) | (38,812 | ) | ||||||||
Other non-cash expense, net | 2,114 | 1,884 | ||||||||||
Changes in other assets and liabilities, net of acquisitions: | ||||||||||||
Restricted cash | 765 | 28,481 | ||||||||||
Accounts receivable | (5,458 | ) | (4,182 | ) | ||||||||
Inventories | (843 | ) | 1,006 | |||||||||
Prepaid expenses and other current assets | 5,238 | (3,089 | ) | |||||||||
Due to manager – related party | (44 | ) | 64,998 | |||||||||
Accounts payable and accrued expenses | (3,134 | ) | 14,933 | |||||||||
Income taxes payable | (5,755 | ) | (17,633 | ) | ||||||||
Pension contribution | – | (26,960 | ) | |||||||||
Other, net | (2,186 | ) | (7,970 | ) | ||||||||
Net cash provided by operating activities | 254,919 | 194,363 | ||||||||||
Investing activities | ||||||||||||
Acquisitions of businesses and investments, net of cash acquired | (236,956 | ) | (1,141,306 | ) | ||||||||
Proceeds from sale of business, net of cash divested | – | 265,295 | ||||||||||
Return of investment in unconsolidated business | – | 12,564 | ||||||||||
Purchases of property and equipment | (97,066 | ) | (81,912 | ) | ||||||||
Change in restricted cash | 10,559 | – | ||||||||||
Other, net | 1,107 | (331 | ) | |||||||||
Net cash used in investing activities | (322,356 | ) | (945,690 | ) | ||||||||
MACQUARIE INFRASTRUCTURE CORPORATION | ||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||||||||
(Unaudited) | ||||||||||
($ in Thousands) | ||||||||||
Nine Months Ended | ||||||||||
September 30, 2015 |
September 30, 2014 |
|||||||||
Financing activities | ||||||||||
Proceeds from long-term debt | $ | 2,120,569 | $ | 196,884 | ||||||
Payment of long-term debt | (2,195,535 | ) | (480,863 | ) | ||||||
Proceeds from the issuance of common stock | 492,248 | 764,937 | ||||||||
Dividends paid to common stockholders | (251,326 | ) | (171,003 | ) | ||||||
Contributions received from noncontrolling interests | 532 | – | ||||||||
Distributions paid to noncontrolling interests | (1,848 | ) | (61,397 | ) | ||||||
Offering and equity raise costs paid | (16,789 | ) | (25,588 | ) | ||||||
Debt financing costs paid | (23,530 | ) | (15,124 | ) | ||||||
Proceeds from the issuance of convertible senior notes | – | 350,000 | ||||||||
Change in restricted cash | 8,008 | (991 | ) | |||||||
Payment of capital lease obligations | (1,880 | ) | (1,481 | ) | ||||||
Net cash provided by financing activities | 130,449 | 555,374 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (687 | ) | (76 | ) | ||||||
Net change in cash and cash equivalents | 62,325 | (196,029 | ) | |||||||
Cash and cash equivalents, beginning of period | 48,014 | 233,373 | ||||||||
Cash and cash equivalents, end of period | $ | 110,339 | $ | 37,344 | ||||||
Supplemental disclosures of cash flow information | ||||||||||
Non-cash investing and financing activities: | ||||||||||
Accrued equity offering costs | $ | 16 | $ | 12 | ||||||
Accrued financing costs | $ | 317 | $ | 7 | ||||||
Accrued purchases of property and equipment | $ | 20,570 | $ | 10,585 | ||||||
Acquisition of equipment through capital leases | $ | 398 | $ | 732 | ||||||
Issuance of common stock to manager | $ | 201,067 | $ | 35,515 | ||||||
Issuance of common stock to independent directors | $ | 750 | $ | 750 | ||||||
Issuance of shares for acquisition of business | $ | – | $ | 115,000 | ||||||
Conversion of convertible senior notes to common stock | $ | 25 | $ | – | ||||||
Conversion of LLC interests to common stock(1) | $ | 79 | $ | – | ||||||
Conversion of LLC interests to additional paid in capital(1) | $ | 2,428,334 | $ | – | ||||||
Conversion of construction loan to term loan | $ | – | $ | 60,360 | ||||||
Distributions payable to noncontrolling interests | $ | 568 | $ | 387 | ||||||
Taxes paid | $ | 6,352 | $ | 17,955 | ||||||
Interest paid | $ | 78,350 | $ | 45,399 | ||||||
______________ |
(1) See Note 9, “Stockholders’ Equity”, for discussion on presentation of common stock, LLC interests and additional paid
in capital. |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS – MD&A |
||||||||||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
Change
Favorable/(Unfavorable) |
Nine Months Ended
September 30, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||||||||||||||||||||||||
2015 | 2014 | $ | % | 2015 | 2014 | $ | % | |||||||||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
Service revenue | $ | 319,827 | $ | 317,915 | 1,912 | 0.6 | $ | 973,638 | $ | 725,623 | 248,015 | 34.2 | ||||||||||||||||||||||||||||||
Product revenue | 95,882 | 70,344 | 25,538 | 36.3 | 264,258 | 218,317 | 45,941 | 21.0 | ||||||||||||||||||||||||||||||||||
Financing and equipment lease income | – | 379 | (379 | ) | (100.0 | ) | – | 1,836 | (1,836 | ) | (100.0 | ) | ||||||||||||||||||||||||||||||
Total revenue | 415,709 | 388,638 | 27,071 | 7.0 | 1,237,896 | 945,776 | 292,120 | 30.9 | ||||||||||||||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||||||||||||||
Cost of services | 138,353 | 158,476 | 20,123 | 12.7 | 420,187 | 386,927 | (33,260 | ) | (8.6 | ) | ||||||||||||||||||||||||||||||||
Cost of product sales | 41,035 | 47,815 | 6,780 | 14.2 | 125,409 | 148,651 | 23,242 | 15.6 | ||||||||||||||||||||||||||||||||||
Gross profit | 236,321 | 182,347 | 53,974 | 29.6 | 692,300 | 410,198 | 282,102 | 68.8 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 73,901 | 77,497 | 3,596 | 4.6 | 225,618 | 189,797 | (35,821 | ) | (18.9 | ) | ||||||||||||||||||||||||||||||||
Fees to manager – related party | 18,118 | 130,501 | 112,383 | 86.1 | 337,950 | 153,990 | (183,960 | ) | (119.5 | ) | ||||||||||||||||||||||||||||||||
Depreciation | 53,070 | 35,958 | (17,112 | ) | (47.6 | ) | 162,293 | 60,540 | (101,753 | ) | (168.1 | ) | ||||||||||||||||||||||||||||||
Amortization of intangibles | 17,783 | 11,369 | (6,414 | ) | (56.4 | ) | 83,656 | 29,590 | (54,066 | ) | (182.7 | ) | ||||||||||||||||||||||||||||||
Loss from customer contract termination | – | 1,269 | 1,269 | 100.0 | – | 1,269 | 1,269 | 100.0 | ||||||||||||||||||||||||||||||||||
Loss on disposal of assets | 323 | 20 | (303 | ) | NM | 972 | 886 | (86 | ) | (9.7 | ) | |||||||||||||||||||||||||||||||
Total operating expenses | 163,195 | 256,614 | 93,419 | 36.4 | 810,489 | 436,072 | (374,417 | ) | (85.9 | ) | ||||||||||||||||||||||||||||||||
Operating income (loss) | 73,126 | (74,267 | ) | 147,393 | 198.5 | (118,189 | ) | (25,874 | ) | (92,315 | ) | NM | ||||||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||||
Dividend income | 270 | 257 | 13 | 5.1 | 1,068 | 257 | 811 | NM | ||||||||||||||||||||||||||||||||||
Interest income | 21 | 10 | 11 | 110.0 | 34 | 105 | (71 | ) | (67.6 | ) | ||||||||||||||||||||||||||||||||
Interest expense(1) | (54,761 | ) | (16,566 | ) | (38,195 | ) | NM | (108,624 | ) | (48,522 | ) | (60,102 | ) | (123.9 | ) | |||||||||||||||||||||||||||
Loss on extinguishment of debt | – | (90 | ) | 90 | 100.0 | – | (90 | ) | 90 | 100.0 | ||||||||||||||||||||||||||||||||
Equity in earnings and amortization charges of investee | – | 993 | (993 | ) | (100.0 | ) | – | 26,079 | (26,079 | ) | (100.0 | ) | ||||||||||||||||||||||||||||||
Gain from acquisition/divestiture of businesses | – | 1,027,054 | (1,027,054 | ) | (100.0 | ) | – | 1,027,054 | (1,027,054 | ) | (100.0 | ) | ||||||||||||||||||||||||||||||
Other income, net | 825 | 821 | 4 | 0.5 | 2,296 | 3,078 | (782 | ) | (25.4 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) before income taxes | 19,481 | 938,212 | (918,731 | ) | (97.9 | ) | (223,415 | ) | 982,087 | (1,205,502 | ) | (122.7 | ) | |||||||||||||||||||||||||||||
(Provision) benefit for income taxes | (11,139 | ) | 52,462 | (63,601 | ) | (121.2 | ) | 77,725 | 38,491 | 39,234 | 101.9 | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 8,342 | $ | 990,674 | (982,332 | ) | (99.2 | ) | $ | (145,690 | ) | $ | 1,020,578 | (1,166,268 | ) | (114.3 | ) | |||||||||||||||||||||||||
Less: net loss attributable to noncontrolling interests | (2,296 | ) | (319 | ) | 1,977 | NM | (4,230 | ) | (481 | ) | 3,749 | NM | ||||||||||||||||||||||||||||||
Net income (loss) attributable to MIC | $ | 10,638 | $ | 990,993 | (980,355 | ) | (98.9 | ) | $ | (141,460 | ) | $ | 1,021,059 | (1,162,519 | ) | (113.9 | ) | |||||||||||||||||||||||||
______________ |
NM – Not meaningful |
(1) Interest expense includes losses on derivative instruments of $30.1 million and $39.9 million for the quarter and nine months ended September 30, 2015, respectively. For the quarter and nine months ended September 30, 2014, interest expense includes gains on derivative instruments of $820,000 and losses on derivative instruments of $13.1 million, respectively. |
MACQUARIE INFRASTRUCTURE CORPORATION RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO MIC TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
Change
Favorable/(Unfavorable) |
Nine Months Ended
September 30, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||||||||||||
2015 | 2014 | $ | % | 2015 | 2014 | $ | % | |||||||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||
Net income (loss) attributable to MIC(1) | $ | 10,638 | $ | 990,993 | $ | (141,460 | ) | $ | 1,021,059 | |||||||||||||||||||||
Interest expense, net(2) | 54,740 | 16,556 | 108,590 | 48,417 | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | 11,139 | (52,462 | ) | (77,725 | ) | (38,491 | ) | |||||||||||||||||||||||
Depreciation(3) | 53,070 | 35,958 | 162,293 | 60,540 | ||||||||||||||||||||||||||
Depreciation – cost of services(3) | – | 963 | – | 4,374 | ||||||||||||||||||||||||||
Amortization of intangibles(4) | 17,783 | 11,369 | 83,656 | 29,590 | ||||||||||||||||||||||||||
Loss from customer contract termination | – | 1,269 | – | 1,269 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | – | 90 | – | 90 | ||||||||||||||||||||||||||
Loss on disposal of assets | 262 | 6 | 810 | 822 | ||||||||||||||||||||||||||
Gain from acquisition/divestiture of businesses | – | (1,027,181 | ) | – | (1,027,181 | ) | ||||||||||||||||||||||||
Equity in earnings and amortization charges of investee | – | (993 | ) | – | (26,079 | ) | ||||||||||||||||||||||||
Equity distributions from investee(5) | – | – | – | 25,086 | ||||||||||||||||||||||||||
Fees to manager- related party(6) | 18,118 | 130,501 | 337,950 | 153,990 | ||||||||||||||||||||||||||
Other non-cash (income) expense, net | (3,042 | ) | 1,988 | (4,180 | ) | 1,696 | ||||||||||||||||||||||||
EBITDA excluding non-cash items | $ | 162,708 | $ | 109,057 | 53,651 | 49.2 | $ | 469,934 | $ | 255,182 | 214,752 | 84.2 | ||||||||||||||||||
EBITDA excluding non-cash items | $ | 162,708 | $ | 109,057 | $ | 469,934 | $ | 255,182 | ||||||||||||||||||||||
Interest expense, net(2) | (54,740 | ) | (16,556 | ) | (108,590 | ) | (48,417 | ) | ||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense(2) | 24,243 | (9,304 | ) | 17,209 | (3,937 | ) | ||||||||||||||||||||||||
Amortization of debt financing costs(2) | 2,191 | 2,326 | 6,757 | 4,467 | ||||||||||||||||||||||||||
Interest rate swap breakage fees | (19,171 | ) | – | (50,556 | ) | – | ||||||||||||||||||||||||
Equipment lease receivable, net | – | 777 | – | 2,805 | ||||||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (150 | ) | 3,620 | (598 | ) | (321 | ) | |||||||||||||||||||||||
Pension contribution | – | (25,825 | ) | – | (26,960 | ) | ||||||||||||||||||||||||
Changes in working capital(6) | (54,106 | ) | (1,067 | ) | (79,237 | ) | 11,544 | |||||||||||||||||||||||
Cash provided by operating activities | 60,975 | 63,028 | 254,919 | 194,363 | ||||||||||||||||||||||||||
Changes in working capital(6) | 54,106 | 1,067 | 79,237 | (11,544 | ) | |||||||||||||||||||||||||
Maintenance capital expenditures | (20,758 | ) | (5,783 | ) | (38,263 | ) | (12,246 | ) | ||||||||||||||||||||||
Free cash flow | $ | 94,323 | $ | 58,312 | 36,011 | 61.8 | $ | 295,893 | $ | 170,573 | 125,320 | 73.5 | ||||||||||||||||||
______________ |
(1) Net income (loss) attributable to MIC excludes net loss attributable to noncontrolling interests of $2.3 million and $4.2 million for the quarter and nine months ended September 30, 2015, respectively, and net loss attributable to noncontrolling interests of $319,000 and $481,000 for the quarter and nine months ended September 30, 2014, respectively. |
(2) Interest expense, net, includes adjustment to derivative instruments and non-cash amortization of deferred financing fees. For the nine months ended September 30, 2015, interest expense also includes non-cash write-off of deferred financing costs related to the May 2015 refinancing at IMTT. |
(3) Depreciation − cost of services includes depreciation expense for our previously owned district energy business, a component of CP&E segment, 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 $315,000 and $4.2 million for the quarter and nine months ended September 30, 2014, respectively, in connection with our previous 50% investment in IMTT, which is reported in equity in earnings and amortization charges of investee in our consolidated condensed statements of operations. |
(4) Amortization of intangibles does not include acquisition-related step-up amortization expense of $14,000 and $185,000 for the quarter and nine months ended September 30, 2014, respectively, in connection with our previous 50% investment in IMTT, which is reported in equity in earnings and amortization charges of investee in our consolidated condensed statements of operations. |
(5) Equity distributions from investee in the above table includes distributions we received only up to our share of the earnings recorded in the calculation for EBITDA excluding non-cash items. |
(6) In July 2015, our Board requested, and our Manager agreed, that $67.8 million of the performance fee for the quarter ended June 30, 2015 be settled in cash in July 2015 to minimize dilution. The remainder of the fee will be reinvested in our shares in July 2016 using the June 2016 monthly volume weighted average price. In October 2014, our Board requested, and our Manager agreed, that $65.0 million of the performance fee for the quarter ended September 30, 2014 be settled in cash using the proceeds from the sale of the district energy business to minimize dilution. The remainder of the fee of $51.6 million was reinvested in additional shares of MIC. |
MACQUARIE INFRASTRUCTURE CORPORATION RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO PROPORTIONATELY COMBINED FREE CASH FLOW |
|||||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
Change
Favorable/(Unfavorable) |
Nine Months Ended
September 30, |
Change
Favorable/(Unfavorable) |
||||||||||||||||||||||||||||||||||
2015 | 2014 | $ | % | 2015 | 2014 | $ | % | ||||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||
Free Cash Flow- Consolidated basis | $ | 94,323 | $ | 58,312 | 36,011 | 61.8 | $ | 295,893 | $ | 170,573 | 125,320 | 73.5 | |||||||||||||||||||||||||
Equity distributions from investee(1) | – | – | – | (25,086 | ) | ||||||||||||||||||||||||||||||||
100% of CP&E Free Cash Flow included in consolidated Free Cash Flow | (2,577 | ) | (4,645 | ) | (9,607 | ) | (11,468 | ) | |||||||||||||||||||||||||||||
MIC’s share of IMTT Free Cash Flow(2) | – | (6,203 | ) | – | 31,324 | ||||||||||||||||||||||||||||||||
MIC’s share of CP&E Free Cash Flow | 1,040 | 2,435 | 5,496 | 6,175 | |||||||||||||||||||||||||||||||||
Free Cash Flow- Proportionately Combined basis | $ | 92,786 | $ | 49,899 | 42,887 | 85.9 | $ | 291,782 | $ | 171,518 | 120,264 | 70.1 | |||||||||||||||||||||||||
_________________ |
(1) Equity distributions from investee represent the portion of distributions received from IMTT that are recorded in cash from operating activities prior to the IMTT Acquisition on July 16, 2014. |
(2) Represents our proportionate share of IMTT’s Free Cash Flow prior to the IMTT Acquisition on July 16, 2014. |
MACQUARIE INFRASTRUCTURE CORPORATION RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||||||||||||||||||||||
IMTT |
|||||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||||||||||
2015 | 2014 |
Change Favorable/ (Unfavorable) |
2015 | 2014 |
Change Favorable/ (Unfavorable) |
||||||||||||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | ||||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||||
Revenues | 135,436 | 131,920 | 3,516 | 2.7 | 415,881 | 422,516 | (6,635 | ) | (1.6 | ) | |||||||||||||||||||||||||||
Cost of services | 55,990 | 59,090 | 3,100 | 5.2 | 170,633 | 187,649 | 17,016 | 9.1 | |||||||||||||||||||||||||||||
Gross Profit | 79,446 | 72,830 | 6,616 | 9.1 | 245,248 | 234,867 | 10,381 | 4.4 | |||||||||||||||||||||||||||||
General and administrative expenses(1) | 8,903 | 13,619 | 4,716 | 34.6 | 24,909 | 31,982 | 7,073 | 22.1 | |||||||||||||||||||||||||||||
Depreciation and amortization | 32,233 | 27,506 | (4,727 | ) | (17.2 | ) | 99,785 | 65,426 | (34,359 | ) | (52.5 | ) | |||||||||||||||||||||||||
Operating income | 38,310 | 31,705 | 6,605 | 20.8 | 120,554 | 137,459 | (16,905 | ) | (12.3 | ) | |||||||||||||||||||||||||||
Interest expense, net(2) | (19,045 |
) |
|
(5,558 | ) | (13,487 | ) | NM | (32,214 | ) | (21,504 | ) | (10,710 | ) | (49.8 | ) | |||||||||||||||||||||
Other income (expense), net | 549 | (188 | ) | 737 | NM | 1,950 | 1,683 | 267 | 15.9 | ||||||||||||||||||||||||||||
Provision for income taxes | (8,053 |
|
(9,531 | ) | 1,478 | 15.5 | (36,801 | ) | (46,088 | ) | 9,287 | 20.2 | |||||||||||||||||||||||||
Noncontrolling interest | (172 |
) |
|
(190 | ) | 18 | 9.5 | (530 | ) | (328 | ) | (202 | ) | (61.6 | ) | ||||||||||||||||||||||
Net income(3) | 11,589 | 16,238 | (4,649 | ) | (28.6 | ) | 52,959 | 71,222 | (18,263 | ) | (25.6 | ) | |||||||||||||||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
|||||||||||||||||||||||||||||||||||||
Net income(3) | 11,589 | 16,238 | 52,959 | 71,222 | |||||||||||||||||||||||||||||||||
Interest expense, net(2) | 19,045 | 5,558 | 32,214 | 21,504 | |||||||||||||||||||||||||||||||||
Provision for income taxes | 8,053 | 9,531 | 36,801 | 46,088 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 32,233 | 27,506 | 99,785 | 65,426 | |||||||||||||||||||||||||||||||||
Other non-cash expenses | 1,941 | 2,519 | 5,154 | 6,020 | |||||||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 72,861 | 61,352 | 11,509 | 18.8 | 226,913 | 210,260 | 16,653 | 7.9 | |||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 72,861 | 61,352 | 226,913 | 210,260 | |||||||||||||||||||||||||||||||||
Interest expense, net(2) | (19,045 |
) |
|
(5,558 | ) | (32,214 | ) | (21,504 | ) | ||||||||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense(2) | 8,474 | (5,518 | ) | 2,140 | (12,167 | ) | |||||||||||||||||||||||||||||||
Amortization of debt financing costs(2) | 408 | 956 | 1,937 | 2,643 | |||||||||||||||||||||||||||||||||
Interest rate swap breakage fees | – | – | (31,385 | ) | – | ||||||||||||||||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (52 |
) |
|
(6,101 | ) | (156 | ) | (32,822 | ) | ||||||||||||||||||||||||||||
Pension contribution | – | (20,000 | ) | – | (20,000 | ) | |||||||||||||||||||||||||||||||
Changes in working capital | 8,686 | 2,219 | (9,667 | ) | (2,722 | ) | |||||||||||||||||||||||||||||||
Cash provided by operating activities | 71,332 | 27,350 | 157,568 | 123,688 | |||||||||||||||||||||||||||||||||
Changes in working capital | (8,686 |
) |
|
(2,219 | ) | 9,667 | 2,722 | ||||||||||||||||||||||||||||||
Maintenance capital expenditures | (12,036 |
) |
|
(11,169 | ) | (20,550 | ) | (37,395 | ) | ||||||||||||||||||||||||||||
Free cash flow | 50,610 | 13,962 | 36,648 | NM | 146,685 | 89,015 | 57,670 | 64.8 | |||||||||||||||||||||||||||||
_____________________ |
NM – Not meaningful |
(1) General and administrative expenses for the quarter and nine months ended September 30, 2014 includes costs in connection with the IMTT Acquisition. |
(2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. For the nine months ended September 30, 2015, interest expense also includes non-cash write-off of deferred financing costs related to the May 2015 refinancing. |
(3) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation. |
Atlantic Aviation |
||||||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
|
Nine Months Ended September 30, |
|
|||||||||||||||||||||||||||||||||||
2015 | 2014 |
Change Favorable/ (Unfavorable) |
2015 | 2014 |
Change Favorable/ (Unfavorable) |
|||||||||||||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||
Revenues | 184,391 | 197,980 | (13,589 | ) | (6.9 | ) | 557,757 | 585,153 | (27,396 | ) | (4.7 | ) | ||||||||||||||||||||||||||
Cost of services | 82,363 | 104,543 | 22,180 | 21.2 | 249,554 | 318,047 | 68,493 | 21.5 | ||||||||||||||||||||||||||||||
Gross Profit | 102,028 | 93,437 | 8,591 | 9.2 | 308,203 | 267,106 | 41,097 | 15.4 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 51,180 | 49,288 | (1,892 | ) | (3.8 | ) | 153,226 | 143,598 | (9,628 | ) | (6.7 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 22,494 | 16,493 | (6,001 | ) | (36.4 | ) | 104,019 | 47,033 | (56,986 | ) | (121.2 | ) | ||||||||||||||||||||||||||
Loss on disposal of assets | 323 | 20 | (303 | ) | NM | 972 | 886 | (86 | ) | (9.7 | ) | |||||||||||||||||||||||||||
Operating income | 28,031 | 27,636 | 395 | 1.4 | 49,986 | 75,589 | (25,603 | ) | (33.9 | ) | ||||||||||||||||||||||||||||
Interest expense, net(1) | (13,436 | ) | (4,689 | ) | (8,747 | ) | (186.5 | ) | (32,126 | ) | (27,606 | ) | (4,520 | ) | (16.4 | ) | ||||||||||||||||||||||
Other income | 83 | 35 | 48 | 137.1 | 95 | 22 | 73 | NM | ||||||||||||||||||||||||||||||
Provision for income taxes | (5,854 | ) | (9,231 | ) | 3,377 | 36.6 | (7,440 | ) | (18,001 | ) | 10,561 | 58.7 | ||||||||||||||||||||||||||
Net income(2) | 8,824 | 13,751 | (4,927 | ) | (35.8 | ) | 10,515 | 30,004 | (19,489 | ) | (65.0 | ) | ||||||||||||||||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
||||||||||||||||||||||||||||||||||||||
Net income(2) | 8,824 | 13,751 | 10,515 | 30,004 | ||||||||||||||||||||||||||||||||||
Interest expense, net(1) | 13,436 | 4,689 | 32,126 | 27,606 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | 5,854 | 9,231 | 7,440 | 18,001 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 22,494 | 16,493 | 104,019 | 47,033 | ||||||||||||||||||||||||||||||||||
Loss on disposal of assets | 262 | 6 | 810 | 822 | ||||||||||||||||||||||||||||||||||
Other non-cash (income) expenses | (267 | ) | 115 | 658 | 271 | |||||||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 50,603 | 44,285 | 6,318 | 14.3 | 155,568 | 123,737 | 31,831 | 25.7 | ||||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 50,603 | 44,285 | 155,568 | 123,737 | ||||||||||||||||||||||||||||||||||
Interest expense, net(1) | (13,436 | ) | (4,689 | ) | (32,126 | ) | (27,606 | ) | ||||||||||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense(1) | 5,346 | (3,593 | ) | 7,927 | 4,712 | |||||||||||||||||||||||||||||||||
Amortization of debt financing costs(1) | 804 | 812 | 2,418 | 2,328 | ||||||||||||||||||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (261 | ) | (442 | ) | (894 | ) | (2,568 | ) | ||||||||||||||||||||||||||||||
Changes in working capital | 2,086 | 5,170 | 292 | 2,925 | ||||||||||||||||||||||||||||||||||
Cash provided by operating activities | 45,142 | 41,543 | 133,185 | 103,528 | ||||||||||||||||||||||||||||||||||
Changes in working capital | (2,086 | ) | (5,170 | ) | (292 | ) | (2,925 | ) | ||||||||||||||||||||||||||||||
Maintenance capital expenditures | (6,785 | ) | (2,611 | ) | (12,966 | ) | (4,610 | ) | ||||||||||||||||||||||||||||||
Free cash flow | 36,271 | 33,762 | 2,509 | 7.4 | 119,927 | 95,993 | 23,934 | 24.9 | ||||||||||||||||||||||||||||||
_____________________ |
NM – Not meaningful |
(1) Interest expense, net, includes adjustments to 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. |
Contracted Power and Energy |
||||||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
|
Nine Months Ended September 30, |
|
|||||||||||||||||||||||||||||||||||
2015 | 2014 |
Change Favorable/ (Unfavorable) |
2015 | 2014 |
Change Favorable/ (Unfavorable) |
|||||||||||||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||
Service revenues | – | 8,952 | (8,952 | ) | (100.0 | ) | – | 29,487 | (29,487 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Product revenues | 43,304 | 5,850 | 37,454 | NM | 91,257 | 15,338 | 75,919 | NM | ||||||||||||||||||||||||||||||
Finance lease revenues | – | 379 | (379 | ) | (100.0 | ) | – | 1,836 | (1,836 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Total revenues | 43,304 | 15,181 | 28,123 | 185.3 | 91,257 | 46,661 | 44,596 | 95.6 | ||||||||||||||||||||||||||||||
Cost of revenue — service(1) | – | 6,364 | 6,364 | 100.0 | – | 21,311 | 21,311 | 100.0 | ||||||||||||||||||||||||||||||
Cost of revenue — product | 6,702 | 1,069 | (5,633 | ) | NM | 14,485 | 2,792 | (11,693 | ) | NM | ||||||||||||||||||||||||||||
Cost of revenue — total | 6,702 | 7,433 | 731 | 9.8 | 14,485 | 24,103 | 9,618 | 39.9 | ||||||||||||||||||||||||||||||
Gross profit | 36,602 | 7,748 | 28,854 | NM | 76,772 | 22,558 | 54,214 | NM | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 6,635 | 2,541 | (4,094 | ) | (161.1 | ) | 23,443 | 6,858 | (16,585 | ) | NM | |||||||||||||||||||||||||||
Depreciation and amortization | 13,860 | 4,022 | (9,838 | ) | NM | 35,159 | 11,732 | (23,427 | ) | (199.7 | ) | |||||||||||||||||||||||||||
Loss from customer contract termination | – | 1,269 | 1,269 | 100.0 | – | 1,269 | 1,269 | 100.0 | ||||||||||||||||||||||||||||||
Operating income (loss) | 16,107 | (84 | ) | 16,191 | NM | 18,170 | 2,699 | 15,471 | NM | |||||||||||||||||||||||||||||
Interest expense, net(2) | (16,567 | ) | (2,422 | ) | (14,145 | ) | NM | (27,850 | ) | (7,757 | ) | (20,093 | ) | NM | ||||||||||||||||||||||||
Loss on extinguishment of debt | – | (90 | ) | 90 | 100.0 | – | (90 | ) | 90 | 100.0 | ||||||||||||||||||||||||||||
Equity in loss of investee | – | (68 | ) | 68 | 100.0 | – | (68 | ) | 68 | 100.0 | ||||||||||||||||||||||||||||
Other (expense) income | (51 | ) | 1,380 | (1,431 | ) | (103.7 | ) | 1,065 | 3,789 | (2,724 | ) | (71.9 | ) | |||||||||||||||||||||||||
Provision for income taxes | (3,266 | ) | (199 | ) | (3,067 | ) | NM | (6,131 | ) | (1,414 | ) | (4,717 | ) | NM | ||||||||||||||||||||||||
Noncontrolling interest | 2,468 | 911 | 1,557 | 170.9 | 4,760 | 2,008 | 2,752 | 137.1 | ||||||||||||||||||||||||||||||
Net loss(3) | (1,309 | ) | (572 | ) | (737 | ) | (128.8 | ) | (9,986 | ) | (833 | ) | (9,153 | ) | NM | |||||||||||||||||||||||
Reconciliation of net loss to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
||||||||||||||||||||||||||||||||||||||
Net loss(3) | (1,309 | ) | (572 | ) | (9,986 | ) | (833 | ) | ||||||||||||||||||||||||||||||
Interest expense, net(2) | 16,567 | 2,422 | 27,850 | 7,757 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | 3,266 | 199 | 6,131 | 1,414 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization (1) | 13,860 | 4,985 | 35,159 | 16,106 | ||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | – | 90 | – | 90 | ||||||||||||||||||||||||||||||||||
Loss from customer contract termination | – | 1,269 | – | 1,269 | ||||||||||||||||||||||||||||||||||
Equity in loss of investee | – | 68 | – | 68 | ||||||||||||||||||||||||||||||||||
Other non-cash income | (4,692 | ) | (915 | ) | (9,732 | ) | (3,805 | ) | ||||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 27,692 | 7,546 | 20,146 | NM | 49,422 | 22,066 | 27,356 | 124.0 | ||||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 27,692 | 7,546 | 49,422 | 22,066 | ||||||||||||||||||||||||||||||||||
Interest expense, net(2) | (16,567 | ) | (2,422 | ) | (27,850 | ) | (7,757 | ) | ||||||||||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense(2) | 10,417 | (1,425 | ) | 7,005 | (4,509 | ) | ||||||||||||||||||||||||||||||||
Amortization of debt financing costs(2) | 262 | 116 | 310 | 502 | ||||||||||||||||||||||||||||||||||
Interest rate swap breakage fees | (19,171 | ) | – | (19,171 | ) | – | ||||||||||||||||||||||||||||||||
Equipment lease receivable, net | – | 777 | – | 2,805 | ||||||||||||||||||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | – | 116 | (2 | ) | (903 | ) | ||||||||||||||||||||||||||||||||
Changes in working capital | 794 | 1,865 | (3,904 | ) | 23,986 | |||||||||||||||||||||||||||||||||
Cash provided by operating activities | 3,427 | 6,573 | 5,810 | 36,190 | ||||||||||||||||||||||||||||||||||
Changes in working capital | (794 | ) | (1,865 | ) | 3,904 | (23,986 | ) | |||||||||||||||||||||||||||||||
Maintenance capital expenditures | (56 | ) | (63 | ) | (107 | ) | (736 | ) | ||||||||||||||||||||||||||||||
Free cash flow | 2,577 | 4,645 | (2,068 | ) | (44.5 | ) | 9,607 | 11,468 | (1,861 | ) | (16.2 | ) | ||||||||||||||||||||||||||
_____________________ |
NM – Not meaningful |
(1) Includes depreciation expense of $1.0 million and $4.4 million related to the district energy business for the quarter and nine months ended September 30, 2014, respectively. |
(2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
(3) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation. |
Hawaii Gas |
|||||||||||||||||||||||||||||||||||
Quarter Ended
September 30, |
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||||||||
2015 | 2014 |
Change Favorable/ (Unfavorable) |
2015 | 2014 |
Change Favorable/ (Unfavorable) |
||||||||||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | ||||||||||||||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
Revenues | 52,578 | 64,494 | (11,916 | ) | (18.5 | ) | 173,001 | 202,979 | (29,978 | ) | (14.8 | ) | |||||||||||||||||||||||
Cost of product sales | 34,333 | 46,746 | 12,413 | 26.6 | 110,924 | 145,859 | 34,935 | 24.0 | |||||||||||||||||||||||||||
Gross profit | 18,245 | 17,748 | 497 | 2.8 | 62,077 | 57,120 | 4,957 | 8.7 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 5,162 | 4,970 | (192 | ) | (3.9 | ) | 15,380 | 15,364 | (16 | ) | (0.1 | ) | |||||||||||||||||||||||
Depreciation and amortization | 2,266 | 2,308 | 42 | 1.8 | 6,986 | 6,861 | (125 | ) | (1.8 | ) | |||||||||||||||||||||||||
Operating income | 10,817 | 10,470 | 347 | 3.3 | 39,711 | 34,895 | 4,816 | 13.8 | |||||||||||||||||||||||||||
Interest expense, net(1) | (1,824 | ) | (1,589 | ) | (235 | ) | (14.8 | ) | (5,573 | ) | (5,267 | ) | (306 | ) | (5.8 | ) | |||||||||||||||||||
Other expense | (172 | ) | (42 | ) | (130 | ) | NM | (432 | ) | (181 | ) | (251 | ) | (138.7 | ) | ||||||||||||||||||||
Provision for income taxes | (3,687 | ) | (3,590 | ) | (97 | ) | (2.7 | ) | (13,287 | ) | (11,709 | ) | (1,578 | ) | (13.5 | ) | |||||||||||||||||||
Net income(2) | 5,134 | 5,249 | (115 | ) | (2.2 | ) | 20,419 | 17,738 | 2,681 | 15.1 | |||||||||||||||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
|||||||||||||||||||||||||||||||||||
Net income(2) | 5,134 | 5,249 | 20,419 | 17,738 | |||||||||||||||||||||||||||||||
Interest expense, net(1) | 1,824 | 1,589 | 5,573 | 5,267 | |||||||||||||||||||||||||||||||
Provision for income taxes | 3,687 | 3,590 | 13,287 | 11,709 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 2,266 | 2,308 | 6,986 | 6,861 | |||||||||||||||||||||||||||||||
Other non-cash (income) expenses | (212 | ) | 453 | (823 | ) | 1,585 | |||||||||||||||||||||||||||||
EBITDA excluding non-cash items | 12,699 | 13,189 | (490 | ) | (3.7 | ) | 45,442 | 43,160 | 2,282 | 5.3 | |||||||||||||||||||||||||
EBITDA excluding non-cash items | 12,699 | 13,189 | 45,442 | 43,160 | |||||||||||||||||||||||||||||||
Interest expense, net(1) | (1,824 | ) | (1,589 | ) | (5,573 | ) | (5,267 | ) | |||||||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense(1) | 6 | (203 | ) | 137 | (57 | ) | |||||||||||||||||||||||||||||
Amortization of debt financing costs(1) | 121 | 121 | 362 | 360 | |||||||||||||||||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | – | 4,674 | – | (662 | ) | ||||||||||||||||||||||||||||||
Pension contribution | – | (5,825 | ) | – | (6,960 | ) | |||||||||||||||||||||||||||||
Changes in working capital | 6,012 | 1,703 | 5,366 | (2,074 | ) | ||||||||||||||||||||||||||||||
Cash provided by operating activities | 17,014 | 12,070 | 45,734 | 28,500 | |||||||||||||||||||||||||||||||
Changes in working capital | (6,012 | ) | (1,703 | ) | (5,366 | ) | 2,074 | ||||||||||||||||||||||||||||
Maintenance capital expenditures | (1,881 | ) | (1,821 | ) | (4,640 | ) | (5,612 | ) | |||||||||||||||||||||||||||
Free cash flow | 9,121 | 8,546 | 575 | 6.7 | 35,728 | 24,962 | 10,766 | 43.1 | |||||||||||||||||||||||||||
|
_____________________ |
NM – Not meaningful |
(1) Interest expense, net, includes adjustments to derivative instruments related to interest rate swaps 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. |
Corporate and Other |
|||||||||||||||||||||||||||||
Quarter Ended
September 30, |
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
2015 | 2014 |
Change Favorable/ (Unfavorable) |
2015 | 2014 |
Change Favorable/ (Unfavorable) |
||||||||||||||||||||||||
$ | $ | $ | % | $ | $ | $ | % | ||||||||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||||||||||||
Fees to manager-related party | 18,118 | 130,501 | 112,383 | 86.1 | 337,950 | 153,990 | (183,960) | (119.5) | |||||||||||||||||||||
Selling, general and administrative expenses | 2,021 | 8,860 | 6,839 | 77.2 | 8,660 | 12,139 | 3,479 | 28.7 | |||||||||||||||||||||
Operating loss | (20,139) | (139,361) | 119,222 | 85.5 | (346,610) | (166,129) | (180,481) | (108.6) | |||||||||||||||||||||
Interest expense, net(1) | (3,868) | (2,727) | (1,141) | (41.8) | (10,827) | (2,658) | (8,169) | NM | |||||||||||||||||||||
Gain from acquisition/divestiture of businesses(2) | – | 1,027,054 | (1,027,054) | (100.0) | – | 1,027,054 | (1,027,054) | (100.0) | |||||||||||||||||||||
Other income | 686 | – | 686 | NM | 686 | – | 686 | NM | |||||||||||||||||||||
Benefit for income taxes | 9,721 | 73,305 | (63,584) | (86.7) | 141,384 | 77,438 | 63,946 | 82.6 | |||||||||||||||||||||
Noncontrolling interest | – | (493) | 493 | 100.0 | – | (1,428) | 1,428 | 100.0 | |||||||||||||||||||||
Net (loss) income(3) | (13,600) | 957,778 | (971,378) | (101.4) | (215,367) | 934,277 | (1,149,644) | (123.1) | |||||||||||||||||||||
Reconciliation of net (loss) income to EBITDA excluding non-cash items and cash used in operating activities to Free Cash Flow: |
|||||||||||||||||||||||||||||
Net (loss) income(3) | (13,600) | 957,778 | (215,367) | 934,277 | |||||||||||||||||||||||||
Interest expense, net(1) | 3,868 | 2,727 | 10,827 | 2,658 | |||||||||||||||||||||||||
Benefit for income taxes | (9,721) | (73,305) | (141,384) | (77,438) | |||||||||||||||||||||||||
Fees to manager-related party(4) | 18,118 | 130,501 | 337,950 | 153,990 | |||||||||||||||||||||||||
Gain from acquisition/divestiture of businesses(2) | – | (1,027,181) | – | (1,027,181) | |||||||||||||||||||||||||
Other non-cash expense | 188 | 681 | 563 | 1,991 | |||||||||||||||||||||||||
EBITDA excluding non-cash items | (1,147) | (8,799) | 7,652 | 87.0 | (7,411) | (11,703) | 4,292 | 36.7 | |||||||||||||||||||||
EBITDA excluding non-cash items | (1,147) | (8,799) | (7,411) | (11,703) | |||||||||||||||||||||||||
Interest expense, net (1) | (3,868) | (2,727) | (10,827) | (2,658) | |||||||||||||||||||||||||
Amortization of debt financing costs(1) | 596 | 457 | 1,730 | 457 | |||||||||||||||||||||||||
Benefit for income taxes, net of changes in deferred taxes | 163 | (3,939) | 454 | 601 | |||||||||||||||||||||||||
Changes in working capital(4) | (71,684) | 6,478 | (71,324) | 2,990 | |||||||||||||||||||||||||
Cash used in operating activities | (75,940) | (8,530) | (87,378) | (10,313) | |||||||||||||||||||||||||
Changes in working capital(4) | 71,684 | (6,478) | 71,324 | (2,990) | |||||||||||||||||||||||||
Free cash flow | (4,256) | (15,008) | 10,752 | 71.6 | (16,054) | (13,303) | (2,751) | (20.7) | |||||||||||||||||||||
_____________________ |
NM- Not meaningful |
(1) Interest expense, net, includes non-cash amortization of deferred financing fees. |
(2) Represents the gain from the remeasuring to fair value of our previous 50% ownership of IMTT and the gain recognized on the sale of the district energy business. See
“Results of Operations – Consolidated” for further discussions. |
(3) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation. |
(4) In July 2015, our Board requested, and our Manager agreed, that $67.8 million of the performance fee for the quarter ended June 30, 2015 be settled in cash in July 2015 to
minimize dilution. The remainder of the fee will be reinvested in our shares in July 2016 using the June 2016 monthly volume weighted average price. In October 2014, our Board requested, and our Manager agreed, that $65.0 million of the performance fee for the quarter ended September 30, 2014 be settled in cash using the proceeds from the sale of the district energy business to minimize dilution. The remainder of the fee of $51.6 million was reinvested in additional shares of MIC. |
MACQUARIE INFRASTRUCTURE CORPORATION RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||||||||||
For the Quarter Ended September 30, 2015 |
|||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT
100%(1) |
Atlantic Aviation
100% |
Contracted Power and Energy(2) |
Hawaii Gas 100% | MIC Corporate 100% | Proportionately Combined(3) |
Contracted Power and Energy 100% |
||||||||||||||||||
Net income (loss) attributable to MIC | 11,589 | 8,824 | (337) | 5,134 | (13,600) | 11,610 | (1,309) | ||||||||||||||||||
Interest expense, net(4) | 19,045 | 13,436 | 14,647 | 1,824 | 3,868 | 52,820 | 16,567 | ||||||||||||||||||
Provision (benefit) for income taxes | 8,053 | 5,854 | 3,266 | 3,687 | (9,721) | 11,139 | 3,266 | ||||||||||||||||||
Depreciation | 29,468 | 8,714 | 10,903 | 2,160 | – | 51,245 | 12,728 | ||||||||||||||||||
Amortization of intangibles | 2,765 | 13,780 | 1,085 | 106 | – | 17,736 | 1,132 | ||||||||||||||||||
Fees to manager-related party | – | – | – | – | 18,118 | 18,118 | – | ||||||||||||||||||
Loss on disposal of assets | – | 262 | – | – | – | 262 | – | ||||||||||||||||||
Other non-cash expense (income) | 1,941 | (267) | (4,294) | (212) | 188 | (2,644) | (4,692) | ||||||||||||||||||
EBITDA excluding non-cash items | 72,861 | 50,603 | 25,270 | 12,699 | (1,147) | 160,286 | 27,692 | ||||||||||||||||||
EBITDA excluding non-cash items | 72,861 | 50,603 | 25,270 | 12,699 | (1,147) | 160,286 | 27,692 | ||||||||||||||||||
Interest expense, net(4) | (19,045) | (13,436) | (14,647) | (1,824) | (3,868) | (52,820) | (16,567) | ||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense, net(4) | 8,474 | 5,346 | 9,396 | 6 | – | 23,222 | 10,417 | ||||||||||||||||||
Amortization of deferred finance charges(4) | 408 | 804 | 248 | 121 | 596 | 2,177 | 262 | ||||||||||||||||||
Interest rate swap breakage fees | – | – | (19,171) | – | – | (19,171) | (19,171) | ||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (52) | (261) | – | – | 163 | (150) | – | ||||||||||||||||||
Changes in working capital | 8,686 | 2,086 | 252 | 6,012 | (71,684) | (54,648) | 794 | ||||||||||||||||||
Cash provided by (used in) operating activities | 71,332 | 45,142 | 1,348 | 17,014 | (75,940) | 58,896 | 3,427 | ||||||||||||||||||
Changes in working capital | (8,686) | (2,086) | (252) | (6,012) | 71,684 | 54,648 | (794) | ||||||||||||||||||
Maintenance capital expenditures | (12,036) | (6,785) | (56) | (1,881) | – | (20,758) | (56) | ||||||||||||||||||
Free cash flow | 50,610 | 36,271 | 1,040 | 9,121 | (4,256) | 92,786 | 2,577 | ||||||||||||||||||
For the Quarter Ended September 30, 2014 |
|||||||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT
50%(6) |
IMTT
100%(1) |
Atlantic Aviation
100% |
Contracted Power and Energy(2) |
Hawaii Gas 100% | MIC Corporate 100% | Proportionately Combined(3) | IMTT
100% (7) |
Contracted Power and Energy 100% |
||||||||||||||||||||||
Net income (loss) attributable to MIC | 1,256 | 13,726 | 13,751 | (524) | 5,249 | 957,778 | 991,236 | 16,238 | (572) | ||||||||||||||||||||||
Interest expense, net(4) | 215 | 5,129 | 4,689 | 1,647 | 1,589 | 2,727 | 15,996 | 5,558 | 2,422 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 854 | 7,823 | 9,231 | (9) | 3,590 | (73,305) | (51,816) | 9,531 | 199 | ||||||||||||||||||||||
Depreciation | 1,091 | 22,926 | 7,203 | 3,273 | 1,997 | – | 36,489 | 25,107 | 4,795 | ||||||||||||||||||||||
Amortization of intangibles | 411 | 1,578 | 9,290 | 96 | 311 | – | 11,686 | 2,399 | 190 | ||||||||||||||||||||||
Loss from customer contract termination | – | – | – | 635 | – | – | 635 | – | 1,269 | ||||||||||||||||||||||
Loss on extinguishment of debt | – | – | – | 45 | – | – | 45 | – | 90 | ||||||||||||||||||||||
Equity in loss of investee | – | – | – | 67 | – | – | 67 | – | 68 | ||||||||||||||||||||||
Fees to manager-related party(5) | – | – | – | – | – | 130,501 | 130,501 | – | – | ||||||||||||||||||||||
Gain from acquisition/divestiture of businesses | – | – | – | – | – | (1,027,181) | (1,027,181) | – | – | ||||||||||||||||||||||
Loss on disposal of assets | – | – | 6 | – | – | – | 6 | – | – | ||||||||||||||||||||||
Other non-cash expense (income) | 433 | 1,654 | 115 | (913) | 453 | 681 | 2,423 | 2,519 | (915) | ||||||||||||||||||||||
EBITDA excluding non-cash items | 4,258 | 52,836 | 44,285 | 4,316 | 13,189 | (8,799) | 110,085 | 61,352 | 7,546 | ||||||||||||||||||||||
EBITDA excluding non-cash items | 4,258 | 52,836 | 44,285 | 4,316 | 13,189 | (8,799) | 110,085 | 61,352 | 7,546 | ||||||||||||||||||||||
Interest expense, net(4) | (215) | (5,129) | (4,689) | (1,647) | (1,589) | (2,727) | (15,996) | (5,558) | (2,422) | ||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense, net(4) | (718) | (4,083) | (3,593) | (713) | (203) | – | (9,309) | (5,518) | (1,425) | ||||||||||||||||||||||
Amortization of deferred finance charges(4) | 68 | 820 | 812 | 64 | 121 | 457 | 2,342 | 956 | 116 | ||||||||||||||||||||||
Equipment lease receivables, net | – | – | – | 389 | – | – | 389 | – | 777 | ||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (4,656) | 3,211 | (442) | 58 | 4,674 | (3,939) | (1,094) | (6,101) | 116 | ||||||||||||||||||||||
Pension contribution | – | (20,000) | – | – | (5,825) | – | (25,825) | (20,000) | – | ||||||||||||||||||||||
Changes in working capital(5) | 9,251 | (16,283) | 5,170 | 2,726 | 1,703 | 6,478 | 9,045 | 2,219 | 1,865 | ||||||||||||||||||||||
Cash provided by (used in) operating activities | 7,989 | 11,372 | 41,543 | 5,192 | 12,070 | (8,530) | 69,636 | 27,350 | 6,573 | ||||||||||||||||||||||
Changes in working capital(5) | (9,251) | 16,283 | (5,170) | (2,726) | (1,703) | (6,478) | (9,045) | (2,219) | (1,865) | ||||||||||||||||||||||
Maintenance capital expenditures | (4,941) | (1,288) | (2,611) | (32) | (1,821) | – | (10,692) | (11,169) | (63) | ||||||||||||||||||||||
Free cash flow | (6,203) | 26,367 | 33,762 | 2,435 | 8,546 | (15,008) | 49,899 | 13,962 | 4,645 | ||||||||||||||||||||||
MACQUARIE INFRASTRUCTURE CORPORATION RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||||||||||
For the Nine Months Ended September 30, 2015 |
|||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT
100%(1) |
Atlantic Aviation
100% |
Contracted Power and Energy(2) |
Hawaii Gas 100% |
MIC Corporate 100% |
Proportionately Combined(3) |
Contracted Power and Energy 100% |
||||||||||||||||||
Net income (loss) attributable to MIC | 52,959 | 10,515 | (8,270) | 20,419 | (215,367) | (139,744) | (9,986) | ||||||||||||||||||
Interest expense, net(4) | 32,214 | 32,126 | 24,261 | 5,573 | 10,827 | 105,001 | 27,850 | ||||||||||||||||||
Provision (benefit) for income taxes | 36,801 | 7,440 | 6,131 | 13,287 | (141,384) | (77,725) | 6,131 | ||||||||||||||||||
Depreciation | 91,490 | 31,726 | 27,289 | 6,311 | – | 156,816 | 32,766 | ||||||||||||||||||
Amortization of intangibles | 8,295 | 72,293 | 2,256 | 675 | – | 83,519 | 2,393 | ||||||||||||||||||
Fees to manager-related party(5) | – | – | – | – | 337,950 | 337,950 | – | ||||||||||||||||||
Loss on disposal of assets | – | 810 | – | – | – | 810 | – | ||||||||||||||||||
Other non-cash expense (income) | 5,154 | 658 | (9,147) | (823) | 563 | (3,595) | (9,732) | ||||||||||||||||||
EBITDA excluding non-cash items | 226,913 | 155,568 | 42,520 | 45,442 | (7,411) | 463,032 | 49,422 | ||||||||||||||||||
EBITDA excluding non-cash items | 226,913 | 155,568 | 42,520 | 45,442 | (7,411) | 463,032 | 49,422 | ||||||||||||||||||
Interest expense, net(4) | (32,214) | (32,126) | (24,261) | (5,573) | (10,827) | (105,001) | (27,850) | ||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense, net(4) | 2,140 | 7,927 | 6,231 | 137 | – | 16,435 | 7,005 | ||||||||||||||||||
Amortization of deferred finance charges(4) | 1,937 | 2,418 | 286 | 362 | 1,730 | 6,733 | 310 | ||||||||||||||||||
Interest rate swap breakage fees | (31,385) | – | (19,171) | – | – | (50,556) | (19,171) | ||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (156) | (894) | (2) | – | 454 | (598) | (2) | ||||||||||||||||||
Changes in working capital(5) | (9,667) | 292 | (4,430) | 5,366 | (71,324) | (79,763) | (3,904) | ||||||||||||||||||
Cash provided by (used in) operating activities | 157,568 | 133,185 | 1,173 | 45,734 | (87,378) | 250,282 | 5,810 | ||||||||||||||||||
Changes in working capital(5) | 9,667 | (292) | 4,430 | (5,366) | 71,324 | 79,763 | 3,904 | ||||||||||||||||||
Maintenance capital expenditures | (20,550) | (12,966) | (107) | (4,640) | – | (38,263) | (107) | ||||||||||||||||||
Free cash flow | 146,685 | 119,927 | 5,496 | 35,728 | (16,054) | 291,782 | 9,607 | ||||||||||||||||||
For the Nine Months Ended September 30, 2014 |
||||||||||||||||||||||||||||||||
($ in Thousands) (Unaudited) | IMTT
50%(6) |
IMTT
100%(1) |
Atlantic Aviation
100% |
Contracted Power and Energy(2) |
Hawaii Gas 100% | MIC Corporate 100% | Proportionately Combined(3) | IMTT 100%(7) |
Contracted Power and Energy 100% |
|||||||||||||||||||||||
Net income (loss) attributable to MIC | 28,748 | 13,726 | 30,004 | 762 | 17,738 | 934,277 | 1,025,255 | 71,222 | (833) | |||||||||||||||||||||||
Interest expense, net(4) | 8,188 | 5,129 | 27,606 | 5,157 | 5,267 | 2,658 | 54,004 | 21,504 | 7,757 | |||||||||||||||||||||||
Provision (benefit) for income taxes | 19,133 | 7,823 | 18,001 | 734 | 11,709 | (77,438) | (20,039) | 46,088 | 1,414 | |||||||||||||||||||||||
Depreciation | 19,582 | 22,926 | 20,794 | 10,187 | 5,926 | – | 79,415 | 62,090 | 15,268 | |||||||||||||||||||||||
Amortization of intangibles | 879 | 1,578 | 26,239 | 420 | 935 | – | 30,051 | 3,336 | 838 | |||||||||||||||||||||||
Loss from customer contract termination | – | – | – | 635 | – | – | 635 | – | 1,269 | |||||||||||||||||||||||
Loss on extinguishment of debt | – | – | – | 45 | – | – | 45 | – | 90 | |||||||||||||||||||||||
Equity in loss of investee | – | – | – | 67 | – | – | 67 | – | 68 | |||||||||||||||||||||||
Fees to manager-related party(5) | – | – | – | – | – | 153,990 | 153,990 | – | – | |||||||||||||||||||||||
Gain from acquisition/divestiture of businesses | – | – | – | – | – | (1,027,181) | (1,027,181) | – | – | |||||||||||||||||||||||
Loss on disposal of assets | – | – | 822 | – | – | – | 822 | – | – | |||||||||||||||||||||||
Other non-cash expense (income) | 2,183 | 1,654 | 271 | (5,268) | 1,585 | 1,991 | 2,416 | 6,020 | (3,805) | |||||||||||||||||||||||
EBITDA excluding non-cash items | 78,712 | 52,836 | 123,737 | 12,738 | 43,160 | (11,703) | 299,480 | 210,260 | 22,066 | |||||||||||||||||||||||
EBITDA excluding non-cash items | 78,712 | 52,836 | 123,737 | 12,738 | 43,160 | (11,703) | 299,480 | 210,260 | 22,066 | |||||||||||||||||||||||
Interest expense, net(4) | (8,188) | (5,129) | (27,606) | (5,157) | (5,267) | (2,658) | (54,004) | (21,504) | (7,757) | |||||||||||||||||||||||
Adjustments to derivative instruments recorded in interest expense, net(4) | (4,042) | (4,083) | 4,712 | (2,255) | (57) | – | (5,725) | (12,167) | (4,509) | |||||||||||||||||||||||
Amortization of deferred finance charges(4) | 912 | 820 | 2,328 | 267 | 360 | 457 | 5,143 | 2,643 | 502 | |||||||||||||||||||||||
Equipment lease receivables, net | – | – | – | 1,403 | – | – | 1,403 | – | 2,805 | |||||||||||||||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (18,017) | 3,211 | (2,568) | (453) | (662) | 601 | (17,887) | (32,822) | (903) | |||||||||||||||||||||||
Pension contribution | – | (20,000) | – | – | (6,960) | – | (26,960) | (20,000) | – | |||||||||||||||||||||||
Changes in working capital(5) | 6,781 | (16,283) | 2,925 | 21,667 | (2,074) | 2,990 | 16,006 | (2,722) | 23,986 | |||||||||||||||||||||||
Cash provided by (used in) operating activities | 56,158 | 11,372 | 103,528 | 28,210 | 28,500 | (10,313) | 217,455 | 123,688 | 36,190 | |||||||||||||||||||||||
Changes in working capital(5) | (6,781) | 16,283 | (2,925) | (21,667) | 2,074 | (2,990) | (16,006) | 2,722 | (23,986) | |||||||||||||||||||||||
Maintenance capital expenditures | (18,054) | (1,288) | (4,610) | (368) | (5,612) | – | (29,932) | (37,395) | (736) | |||||||||||||||||||||||
Free cash flow | 31,324 | 26,367 | 95,993 | 6,175 | 24,962 | (13,303) | 171,518 | 89,015 | 11,468 | |||||||||||||||||||||||
___________________________ |
(1) Represents our 100% ownership interest in IMTT subsequent to July 16, 2014. IMTT owns 66.7% of its Quebec marine terminal in Canada. The remainder is owned by one other party. IMTT consolidates the results of the Quebec terminal in its financial statements and adjusts the portion that it does not own through noncontrolling interest. The above table shows 100% of IMTT, including the 33.3% portion of the Quebec terminal that it does not own, which is not significant. Both MIC’s and IMTT’s EBITDA excluding non-cash items and Free Cash Flow reflects 100% of the results of the Quebec terminal. |
(2) Proportionately combined Free Cash Flow for Contracted Power and Energy is equal to MIC’s controlling ownership interest in its solar and wind power generation businesses and the district energy business, up to August 21, 2014, date of sale. As of April 1, 2015, Contracted Power and Energy also includes 100% of BEC, a gas-fired power generation facility. |
(3) 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. |
(4) Interest expense, net, includes adjustment to derivative instruments and non-cash amortization of deferred financing fees. For the nine months ended September 30, 2015, interest expense also includes non-cash write-off of deferred financing costs related to the May 2015 refinancing at IMTT. |
(5) In July 2015, our Board requested, and our Manager agreed, that $67.8 million of the performance fee for the quarter ended June 30, 2015 be settled in cash in July 2015 to minimize dilution. The remainder of the fee will be reinvested in our shares in July 2016 using the June 2016 monthly volume weighted average price. In October 2014, our Board requested, and our Manager agreed, that $65.0 million of the performance fee for the quarter ended September 30, 2014 be settled in cash using the proceeds from the sale of the district energy business to minimize dilution. The remainder of the fee of $51.6 million was reinvested in additional shares of MIC. |
(6) Our proportionate interest in IMTT prior to the acquisition of the remaining 50% interest on July 16, 2014. |
(7) Represents 100% of IMTT as a stand-alone business. |