NEW YORK--(BUSINESS WIRE)--Macquarie Infrastructure Company LLC (NYSE:MIC) reported an 89.0% increase in proportionately combined Free Cash Flow to $122.7 million in the first quarter of 2015 from $64.9 million in the first quarter of 2014. The increase reflects the acquisition of the second half of the Company’s International-Matex Tank Terminals (“IMTT”) bulk liquid terminals business in July of 2014 and the improved operating performance of MIC’s businesses.
Proportionately combined Free Cash Flow per share increased 45.6% to $1.68 versus $1.15 in the prior comparable period. The smaller per share increase compared with the growth in total Free Cash Flow reflects the impact on a weighted average basis of the issuance of 16.8 million additional shares over the 12 months ended March 31, 2015.
MIC issued additional shares in capital raisings conducted in relation to the acquisitions of IMTT in July of 2014 and the Bayonne Energy Center (“BEC”) in March of 2015 and to MIC’s manager in satisfaction of base and performance fees that became payable during the twelve months ended March 31, 2015.
The growth in MIC’s Free Cash Flow and Free Cash Flow per share in the first quarter of 2015 continues a track record of operating performance improvement across its portfolio of infrastructure businesses including:
- year-on-year growth in key performance measures at Atlantic Aviation reflective of the ongoing recovery in general aviation in the U.S. and market share gain;
- continued growth in terminal operations at IMTT together with lower than anticipated maintenance capital expenditures (approximately $0.03 per share versus expected $0.15), partially offset by lower heating and spill response revenue compared with unusually high levels in 2014; and,
- increased contributions to MIC’s results from its Hawaii Gas business and Contracted Power and Energy segment (net of dispositions).
Reflecting the improved cash generation, the MIC Board of Directors has authorized a cash dividend of $1.07 per share, or $4.28 annualized, for the first quarter of 2015. The dividend will be payable on May 19, 2015 to shareholders of record on May 14, 2015. The quarterly cash payment represents a 4.9% increase over the dividend paid for the fourth quarter of 2014.
“The generation of Free Cash Flow in the first quarter was ahead of our guidance on an annualized basis,” said James Hooke, chief executive officer of MIC. “With only one quarter of results in and with what we believe will be the normalization of certain items over the remainder of the year, it is too early to revise our guidance of 14% year-on-year growth. However, I am pleased to have started the year ahead of plan.”
In addition to contributions from acquisitions concluded in 2014, MIC expects to benefit from the continued deployment of capital across all of its businesses. “We expect to deploy approximately $250.0 million over the course of the year,” said Hooke. “We continue to anticipate deploying approximately $150.0 million in growth projects that have already been identified and approximately $100.0 million in smaller acquisitions executed on behalf of our existing businesses.”
Consolidated Results for the First Quarter
MIC’s consolidated revenue for the first quarter of 2015 increased by 44.3% compared with the first quarter in 2014 primarily as a result of the inclusion of results for IMTT following the acquisition of the second half of that business in July of 2014. The increase was partially offset by lower cost energy inputs in 2015 compared with 2014 resulting from the decline in the price of oil and oil products. MIC notes that these decreases in revenue reflect the pass-through nature of energy-related costs.
Gross profit removes the volatility in revenue associated with fluctuations in energy inputs and highlights underlying trends in aggregate volume and margins at MIC. The Company’s consolidated gross profit doubled to $226.0 million in the first quarter of 2015 from $113.0 in the first quarter in 2014. The gross profit increase again reflects the consolidation of IMTT and contributions from acquisitions concluded by Atlantic Aviation as well as improved underlying operating performance at each of MIC’s other businesses.
MIC reported a consolidated net loss, before taxes, of $145.8 million in the first quarter of 2015 compared with consolidated net income of $28.6 million in the first quarter of 2014. The net loss reflects primarily the impact of the performance fees incurred in the 2015 quarter.
Segment Results for the First Quarter
MIC’s bulk liquid marine terminals business, IMTT, one of the largest independent terminal operations in the country, generated a 54.5% increase in Free Cash Flow in the first quarter of 2015 compared with the first quarter in 2014. The increase reflects a reduction in cash taxes, maintenance capital expenditures and cash interest versus the prior comparable quarter. EBITDA excluding non-cash items was down 1.3% versus the first quarter in 2014 as a result of reduced heating gross profit and a reduced contribution from OMI Environmental Services.
“IMTT generated a significant amount of Free Cash Flow in the quarter, driven by the progress we continued to make with respect to improving operations,” said Hooke. “Excluding the impact of the reduction in heating gross profit and OMI spill response activity, EBITDA generated by IMTT in the first quarter of 2015 would have increased by 8.5% compared with the first quarter in 2014.”
Heating revenue and gross profit related to heating heavy liquids declined by $5.1 million and $3.9 million, respectively, in the first quarter of 2015 versus the prior comparable period. Consumption of natural gas – and the price of natural gas – spiked unusually in 2014 as a result of what is commonly referred to as the Polar Vortex.
Spill response activity at IMTT subsidiary OMI Environmental Solutions (“OMI”) was lower in the first quarter of 2015 as well. Spill response revenue and gross profit declined by $7.5 million and $3.3 million, respectively, compared with the first quarter in 2014. OMI was involved in several clean-up operations including a substantial event on the Houston Ship Channel in the first half of 2014.
“We continue to make good progress in our efforts to reduce expenses and would expect to realize annualized savings of $10.0 million by the end of 2015,” Hooke noted. “Maintenance capital expenditures were very low in the first quarter of the year as we continued to put policies and processes around management of these in place, although we expect a normalization in the remainder of 2015 and continue to believe that IMTT will spend approximately $45.0 million on maintenance over the whole of the year.”
The Company anticipates completing a refinancing of IMTT’s long term debt in the second quarter of 2015. The current capitalization of the business includes an approximately $1.3 billion revolving credit facility that matures in February of 2018. As previously disclosed, management intends to increase the tenor of the facility or facilities used to capitalize the business.
MIC’s Atlantic Aviation business continued to benefit from the upswing in general aviation flight activity in the U.S., the impact of acquisitions of additional fixed base operations (“FBOs”) by the business in 2014, positive trends in the industry generally and market share gains. The Free Cash Flow generated by Atlantic Aviation increased by 45.0% in the first quarter of 2015 compared with the first quarter in 2014. The increase reflects a 40.5% increase in EBITDA excluding non-cash items as well as a decrease in cash taxes partially offset by an increase in maintenance capital expenditures and cash interest.
“The outstanding cash generation reported by Atlantic Aviation in the first quarter reflect trends including an increase in the size of general aviation jets, and market share gains that have come at the expense of competitors,” said Hooke. “The Atlantic network has been strengthened considerably with the addition of the FBOs in Florida that we acquired during the past 12 months and others are struggling to match Atlantic’s service levels, particularly in the east coast corridor.” Atlantic Aviation’s network of 69 FBOs includes six facilities in Florida.
Atlantic Aviation generated strong results on same store basis – excluding the impact the acquisitions – as well. Same store gross profit increased 9.4% on growth in fuel gross profit and rental revenue.
During the first quarter of 2015 MIC’s Contracted Power & Energy segment consisted of five solar and two wind power generation facilities. The wind power facilities were acquired during the second half of 2014. In the prior comparable period the segment also included results for a district energy business that was sold in August of 2014.
As a result of the acquisition and divestiture activity over the trailing twelve months, comparison of the performance of the segment with prior periods is not meaningful and a same store comparison is not material. In the first quarter of 2015 CP&E generated EBITDA of $6.5 million including approximately $700,000 of expenses incurred in connection with the acquisition of BEC. Free Cash Flow generated by the segment totaled $2.7 million for the quarter.
Including BEC, MIC expects the segment to generate EBITDA of approximately $75.0 million over the whole of 2015.
Gas sales increased by 3.6% at MIC’s Hawaii Gas business during the first quarter of 2015 compared with the first quarter in 2014 primarily driven by an increase in average margins and growth in sales to commercial accounts as customers continue to switch from electricity and diesel to gas. The resulting increase in gross profit, together with a modest reduction in selling, general and administrative expenses, contributed to growth in EBITDA excluding non-cash items of $1.9 million or 12.4%.
Hawaii Gas generated $14.2 million in Free Cash Flow for the quarter, up 63.8% on the prior comparable period, as a result of the improved operating performance, lower taxes and the absence of pension contributions.
MIC’s Corporate and Other segment includes public company expenses, board of directors costs and expenses associated with capital markets activities including interest expense on corporate level debt securities and revolving credit facilities. The segment result also reflects the impact of (non-cash) base management and performance fees paid by the Company to its external manager.
The Company’s Corporate and Other segment results for the first quarter of 2015 include $165.3 million of base and performance fees, all of which were settled with the issuance of additional shares. An increase in selling, general and administrative expenses resulted in EBITDA excluding non-cash items totaling ($2.8) million for the first quarter in 2015 compared with ($0.9) million in the first quarter in 2014. Including interest expense on convertible notes issued in July of 2014 and commitment fees on a revolving credit facility, Free Cash Flow generated by the Corporate and Other segment decreased to ($5.3) million from $1.5 million in the prior comparable period.
The BEC Transaction
MIC raised a net $471.6 million of additional equity in March 2015 to fund, in part, the acquisition of BEC and general corporate needs. The acquisition of BEC was concluded on April 1, 2015. The $215.2 million cash portion of the $724.3 million acquisition (including preliminary adjustments for working capital) was funded using a portion of the capital raised in March. MIC expects BEC to be immediately accretive to its Free Cash Flow.
Special Meeting
As previously announced, MIC will hold a Special Meeting of shareholders on Friday, May 15, 2015. Among other matters, shareholders will be asked to approve the conversion of the Company from a Delaware Limited Liability Company to a Delaware corporation. The meeting will be held at 10:00am at the Company’s offices in New York City.
Cash Generation, Proportionately Combined and Reconciled to GAAP
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. EBITDA excluding non-cash items is defined as earnings before interest, taxes, depreciation and amortization and non-cash items, which include impairments, gains and losses on derivatives and adjustments for certain other non-cash items reflected in the statement of operations including base and performance fees.
The Company believes that EBITDA excluding non-cash items provides additional insight into the performance of its operating businesses, relative to each other and to similar businesses, without regard to capital structure, their ability to service or reduce debt, fund capital expenditures and/or support distributions to the holding company.
MIC also reports Free Cash Flow, as defined below, on both a consolidated and operating segment basis as a means of assessing the amount of cash generated by its businesses and as a supplement to other information provided in accordance with GAAP, and reconciles each to cash from operating activities. MIC believes that reporting Free Cash Flow provides additional insight into its ability to deploy cash, as GAAP measures, such as net income (loss) and cash from operating activities, do not reflect all of the items that management considers in estimating the amount of cash generated by its operating businesses. MIC defines Free Cash Flow as cash from operating activities, less maintenance capital expenditures which includes principal repayment on capital lease obligations used to fund maintenance capital expenditures, cash interest, cash taxes, pension contributions and changes in working capital. See the attached reconciliation of EBITDA excluding non-cash items and Free Cash Flow to their most comparable GAAP measures.
/--------------------------------------------------For the Quarter Ended March 31, 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 | 84,470 | 108,115 | 6,820 | 24,184 | N/A | 223,589 | 9,185 | |||||||||||||||||
EBITDA excluding non-cash items | 78,404 | 56,259 | 4,451 | 16,854 | (2,758) | 153,210 | 6,485 | |||||||||||||||||
Free cash flow | 66,184 | 46,070 | 1,593 | 14,150 | (5,316) | 122,681 | 2,689 | |||||||||||||||||
/----------------------------------------------------------------------For the Quarter Ended March 31, 2014------------------------------------------------------------------------/ | ||||||||||||||||||||||||||||
IMTT 50%(4) |
Atlantic Aviation |
Contracted Power and Energy(2) |
Hawaii Gas |
MIC Corporate |
Proportionately Combined(3) |
IMTT 100%(5) |
Contracted Power and Energy 100% |
|||||||||||||||||||||
Gross profit | 42,496 | 87,209 | 3,567 | 19,972 | N/A | 153,243 | 84,991 | 5,821 | ||||||||||||||||||||
EBITDA excluding non-cash items | 39,737 | 40,036 | 3,878 | 14,991 | (858) | 97,783 | 79,473 | 6,496 | ||||||||||||||||||||
Free cash flow | 21,416 | 31,767 | 1,612 | 8,636 | 1,489 | 64,920 | 42,832 | 2,775 | ||||||||||||||||||||
_______________________ |
N/A- Not applicable. |
(1) Represents our 100% ownership interest in IMTT subsequent to July 16, 2014. |
(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. |
(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. |
Conference Call and Webcast
When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Tuesday, May 5, 2015 during which it will review and comment on the Company’s results for the first quarter.
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 Company’s website at www.macquarie.com/mic. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the webcast.
Slides: The Company will prepare materials in support of its conference call presentation. The materials will be available for downloading from the Company’s website the morning of May 5, 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 May 5, 2014 through midnight on May 12, 2015, at +1(404) 537-3406 or +1(855) 859-2056, Passcode: 21960275. An online archive of the webcast will be available on the Company’s website for one year following the call. MIC-G
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid marine 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 Company website at www.macquarie.com/mic. MIC-G.
Forward-Looking Statements
This filing contains forward-looking statements. MIC may, in some cases, use words such as "project”, "believe”, "anticipate”, "plan”, "expect”, "estimate”, "intend”, "should”, "would”, "could”, "potentially”, or "may” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this report are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MIC’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
“Macquarie Group” refers to the Macquarie Group of companies, which comprises Macquarie Group Limited and its worldwide subsidiaries and affiliates. Macquarie Infrastructure Company LLC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Infrastructure Company LLC.
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||||||
($ in Thousands, Except Share Data) | ||||||||||||||
March 31,
2015 |
December 31,
2014 |
|||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 101,312 | $ | 48,014 | ||||||||||
Restricted cash | 9,565 | 21,282 | ||||||||||||
Accounts receivable, less allowance for doubtful accounts | ||||||||||||||
of $1,328 and $771, respectively | 96,928 | 96,885 | ||||||||||||
Inventories | 26,114 | 28,080 | ||||||||||||
Prepaid expenses | 14,642 | 14,276 | ||||||||||||
Deferred income taxes | 25,412 | 25,412 | ||||||||||||
Other | 18,355 | 22,941 | ||||||||||||
Total current assets | 292,328 | 256,890 | ||||||||||||
Property, equipment, land and leasehold improvements, net | 3,331,537 | 3,362,585 | ||||||||||||
Investment in unconsolidated business | 9,166 | 9,773 | ||||||||||||
Goodwill | 1,992,742 | 1,996,259 | ||||||||||||
Intangible assets, net | 916,515 | 959,634 | ||||||||||||
Deferred financing costs, net of accumulated amortization | 30,548 | 32,037 | ||||||||||||
Other | 11,936 | 8,010 | ||||||||||||
Total assets | $ | 6,584,772 | $ | 6,625,188 | ||||||||||
LIABILITIES AND MEMBERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Due to manager - related party | $ | 154,822 | $ | 4,858 | ||||||||||
Accounts payable | 42,119 | 49,733 | ||||||||||||
Accrued expenses | 62,152 | 77,248 | ||||||||||||
Current portion of long-term debt | 28,187 | 27,655 | ||||||||||||
Fair value of derivative instruments | 29,499 | 32,111 | ||||||||||||
Other | 25,820 | 32,727 | ||||||||||||
Total current liabilities | 342,599 | 224,332 | ||||||||||||
Long-term debt, net of current portion | 1,940,406 | 2,364,866 | ||||||||||||
Deferred income taxes | 845,486 | 904,108 | ||||||||||||
Fair value of derivative instruments | 32,620 | 27,724 | ||||||||||||
Other | 139,828 | 133,990 | ||||||||||||
Total liabilities | 3,300,939 | 3,655,020 | ||||||||||||
Commitments and contingencies | - | - | ||||||||||||
Members’ equity: | ||||||||||||||
LLC interests, or shares, no par value; 500,000,000 authorized;
77,412,136 shares
issued and outstanding at March 31, 2015 and 71,089,590 shares issued and outstanding at December 31, 2014 |
2,351,612 | 1,942,745 | ||||||||||||
Additional paid in capital | 21,447 | 21,447 | ||||||||||||
Accumulated other comprehensive loss | (23,975 | ) | (21,550 | ) | ||||||||||
Retained earnings | 755,519 | 844,521 | ||||||||||||
Total members’ equity | 3,104,603 | 2,787,163 | ||||||||||||
Noncontrolling interests | 179,230 | 183,005 | ||||||||||||
Total equity | 3,283,833 | 2,970,168 | ||||||||||||
Total liabilities and equity | $ | 6,584,772 | $ | 6,625,188 | ||||||||||
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited) | ||||||||||||
($ in Thousands, Except Share and Per Share Data) | ||||||||||||
Quarter Ended
March 31, 2015 |
Quarter Ended
March 31, 2014 |
|||||||||||
Revenue | ||||||||||||
Service revenue | $ | 326,002 |
|
$ |
202,439 | |||||||
Product revenue |
72,496 | 73,009 | ||||||||||
Financing and equipment lease income | - | 747 | ||||||||||
Total revenue | 398,498 | 276,195 | ||||||||||
Costs and expenses | ||||||||||||
Cost of services | 133,417 | 112,954 | ||||||||||
Cost of product sales | 39,127 | 50,239 | ||||||||||
Selling, general and administrative | 70,653 | 55,464 | ||||||||||
Fees to manager - related party | 165,273 | 8,994 | ||||||||||
Depreciation | 57,422 | 12,154 | ||||||||||
Amortization of intangibles | 47,971 | 8,765 | ||||||||||
Loss on disposal of assets | 545 | - | ||||||||||
Total operating expenses | 514,408 | 248,570 | ||||||||||
Operating (loss) income | (115,910 | ) | 27,625 | |||||||||
Other income (expense) | ||||||||||||
Dividend income | 531 | - | ||||||||||
Interest income | 6 | 64 | ||||||||||
Interest expense(1) | (31,521 | ) | (14,011 | ) | ||||||||
Equity in earnings and amortization charges of investee | - | 14,287 | ||||||||||
Other income, net | 1,046 | 681 | ||||||||||
Net (loss) income before income taxes | (145,848 | ) | 28,646 | |||||||||
Benefit (provision) for income taxes(2) | 55,333 | (8,486 | ) | |||||||||
Net (loss) income | $ | (90,515 | ) |
|
$ |
20,160 | ||||||
Less: net loss attributable to noncontrolling interests | (1,513 | ) | (206 | ) | ||||||||
Net (loss) income attributable to MIC LLC | $ | (89,002 | ) |
|
$ |
20,366 | ||||||
Basic (loss) income per share attributable to MIC LLC | $ | (1.22 | ) |
|
$ |
0.36 | ||||||
Weighted average number of shares outstanding: basic | 73,150,111 | 56,369,295 | ||||||||||
Diluted (loss) income per share attributable to MIC LLC | $ | (1.22 | ) |
|
$ |
0.36 | ||||||
Weighted average number of shares outstanding: diluted | 73,150,111 | 56,382,205 | ||||||||||
Cash dividends declared per share | $ | 1.07 |
|
$ |
0.9375 | |||||||
_____________________ |
(1) Interest expense includes losses on derivative instruments of $12.9 million and $5.3 million for the quarters ended March 31, 2015 and 2014, respectively, of which net loss of 239,000 was reclassified from accumulated other comprehensive loss for the quarter ended March 31, 2014. |
(2) Includes $95,000 of benefit for income taxes from accumulated other comprehensive loss reclassification for the quarter ended March 31, 2014. |
MACQUARIE INFRASTRUCTURE COMPANY LLC | ||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
(Unaudited) | ||||||||||||
($ in Thousands) | ||||||||||||
Quarter Ended
March 31, 2015 |
Quarter Ended
March 31, 2014 |
|||||||||||
Operating activities | ||||||||||||
Net (loss) income | $ | (90,515 | ) | $ | 20,160 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of property and equipment | 57,422 | 13,858 | ||||||||||
Amortization of intangible assets | 47,971 | 8,765 | ||||||||||
Loss on disposal of assets | 453 | - | ||||||||||
Equity in earnings and amortization charges of investee | - | (14,287 | ) | |||||||||
Equity distributions from investee | - | 8,127 | ||||||||||
Amortization of debt financing costs | 1,615 | 1,041 | ||||||||||
Adjustments to derivative instruments | 2,833 | 1,094 | ||||||||||
Base management fees to be settled/settled in shares | 16,545 | 8,994 | ||||||||||
Performance fees to be settled in shares | 148,728 | - | ||||||||||
Equipment lease receivable, net | - | 996 | ||||||||||
Deferred rent | 233 | 50 | ||||||||||
Deferred taxes | (56,138 | ) | 6,439 | |||||||||
Other non-cash expenses, net | 745 | 692 | ||||||||||
Changes in other assets and liabilities, net of acquisitions: | ||||||||||||
Restricted cash | 669 | 14,643 | ||||||||||
Accounts receivable | 222 | (6,431 | ) | |||||||||
Inventories | 2,087 | 1,973 | ||||||||||
Prepaid expenses and other current assets | 5,901 | (492 | ) | |||||||||
Due to manager - related party | (88 | ) | (116 | ) | ||||||||
Accounts payable and accrued expenses | (18,153 | ) | (4,166 | ) | ||||||||
Income taxes payable | (853 | ) | (69 | ) | ||||||||
Pension contribution | - | (310 | ) | |||||||||
Other, net | (2,661 | ) | (1,884 | ) | ||||||||
Net cash provided by operating activities | 117,016 | 59,077 | ||||||||||
Investing activities | ||||||||||||
Acquisitions of businesses and investments, net of cash acquired | (18,137 | ) | (1,052 | ) | ||||||||
Purchases of property and equipment | (25,481 | ) | (21,613 | ) | ||||||||
Other, net | 544 | 52 | ||||||||||
Net cash used in investing activities | (43,074 | ) | (22,613 | ) | ||||||||
Financing activities | ||||||||||||
Proceeds from long-term debt | $ | 29,000 | $ | 4,884 | ||||||||
Payment of long-term debt | (452,628 | ) | (11,084 | ) | ||||||||
Proceeds from the issuance of shares | 487,937 | - | ||||||||||
Dividends paid to shareholders | (78,075 | ) | (51,469 | ) | ||||||||
Distributions paid to noncontrolling interests | (1,000 | ) | (656 | ) | ||||||||
Offering and equity raise costs paid | (15,964 | ) | (5 | ) | ||||||||
Debt financing costs paid | - | (1,050 | ) | |||||||||
Proceeds from the issuance of shares pursuant to MIC Direct | 95 | 72 | ||||||||||
Change in restricted cash | 11,047 | (1,506 | ) | |||||||||
Payment of capital lease obligations | (758 | ) | (454 | ) | ||||||||
Net cash used in financing activities | (20,346 | ) | (61,268 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (298 | ) | - | |||||||||
Net change in cash and cash equivalents | 53,298 | (24,804 | ) | |||||||||
Cash and cash equivalents, beginning of period | 48,014 | 233,373 | ||||||||||
Cash and cash equivalents, end of period | $ | 101,312 | $ | 208,569 | ||||||||
Supplemental disclosures of cash flow information | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||
Accrued equity offering costs | $ | 349 | $ | 1 | ||||||||
Accrued financing costs | $ | 126 | $ | - | ||||||||
Accrued purchases of property and equipment | $ | 5,239 | $ | 1,797 | ||||||||
Acquisition of equipment through capital leases | $ | 398 | $ | - | ||||||||
Issuance of shares to manager for base management fees | $ | 15,221 | $ | 8,777 | ||||||||
Conversion of convertible senior notes to shares | $ | 2 | $ | - | ||||||||
Conversion of construction loan to term loan | $ | - | $ | 60,360 | ||||||||
Distributions payable to noncontrolling interests | $ | 75 | $ | 128 | ||||||||
Taxes paid | $ | 1,657 | $ | 2,116 | ||||||||
Interest paid | $ | 26,887 | $ | 11,351 | ||||||||
MACQUARIE INFRASTRUCTURE COMPANY LLC CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS – MD&A |
||||||||||||||||||||
Quarter Ended March 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||||
2015 | 2014 | $ | % | |||||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
Service revenue | $ | 326,002 | $ | 202,439 | 123,563 | 61.0 | ||||||||||||||
Product revenue | 72,496 | 73,009 | (513 | ) | (0.7 | ) | ||||||||||||||
Financing and equipment lease income | - | 747 | (747 | ) | (100.0 | ) | ||||||||||||||
Total revenue | 398,498 | 276,195 | 122,303 | 44.3 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of services | 133,417 | 112,954 | (20,463 | ) | (18.1 | ) | ||||||||||||||
Cost of product sales | 39,127 | 50,239 | 11,112 | 22.1 | ||||||||||||||||
Gross profit | 225,954 | 113,002 | 112,952 | 100.0 | ||||||||||||||||
Selling, general and administrative | 70,653 | 55,464 | (15,189 | ) | (27.4 | ) | ||||||||||||||
Fees to manager - related party | 165,273 | 8,994 | (156,279 | ) | NM | |||||||||||||||
Depreciation | 57,422 | 12,154 | (45,268 | ) | NM | |||||||||||||||
Amortization of intangibles | 47,971 | 8,765 | (39,206 | ) | NM | |||||||||||||||
Loss on disposal of assets | 545 | - | (545 | ) | NM | |||||||||||||||
Total operating expenses | 341,864 | 85,377 | (256,487 | ) | NM | |||||||||||||||
Operating (loss) income | (115,910 | ) | 27,625 | (143,535 | ) | NM | ||||||||||||||
Other income (expense) | ||||||||||||||||||||
Dividend income | 531 | - | 531 | NM | ||||||||||||||||
Interest income | 6 | 64 | (58 | ) | (90.6 | ) | ||||||||||||||
Interest expense(1) | (31,521 | ) | (14,011 | ) | (17,510 | ) | (125.0 | ) | ||||||||||||
Equity in earnings and amortization charges of investee | - | 14,287 | (14,287 | ) | (100.0 | ) | ||||||||||||||
Other income, net | 1,046 | 681 | 365 | 53.6 | ||||||||||||||||
Net (loss) income before income taxes | (145,848 | ) | 28,646 | (174,494 | ) | NM | ||||||||||||||
Benefit (provision) for income taxes | 55,333 | (8,486 | ) | 63,819 | NM | |||||||||||||||
Net (loss) income | $ | (90,515 | ) | $ | 20,160 | (110,675 | ) | NM | ||||||||||||
Less: net loss attributable to noncontrolling interests | (1,513 | ) | (206 | ) | 1,307 | NM | ||||||||||||||
Net (loss) income attributable to MIC LLC | $ | (89,002 | ) | $ | 20,366 | (109,368 | ) | NM | ||||||||||||
_____________________ |
NM - Not meaningful |
(1) Interest expense includes losses on derivative instruments of $12.9 million and $5.3 million for the quarters ended March 31, 2015 and 2014, respectively. |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO MIC LLC TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||
Quarter Ended March 31, |
Change
Favorable/(Unfavorable) |
||||||||||||||||
2015 | 2014 | $ | % | ||||||||||||||
($ in Thousands) (Unaudited) |
|||||||||||||||||
Net (loss) income attributable to MIC LLC(1) | $ | (89,002 | ) | $ | 20,366 | ||||||||||||
Interest expense, net(2) | 31,515 | 13,947 | |||||||||||||||
(Benefit) provision for income taxes | (55,333 | ) | 8,486 | ||||||||||||||
Depreciation(3) | 57,422 | 12,154 | |||||||||||||||
Depreciation - cost of services(3) | - | 1,704 | |||||||||||||||
Amortization of intangibles(4) | 47,971 | 8,765 | |||||||||||||||
Loss on disposal of assets | 453 | - | |||||||||||||||
Equity in earnings and amortization charges of investee | - | (14,287 | ) | ||||||||||||||
Equity distributions from investee(5) | - | 8,127 | |||||||||||||||
Base management fees to be settled/settled in shares | 16,545 | 8,994 | |||||||||||||||
Performance fees to be settled in shares | 148,728 | - | |||||||||||||||
Other non-cash (income) expense, net | (3,055 | ) | 536 | ||||||||||||||
EBITDA excluding non-cash items | $ | 155,244 | $ | 68,792 | 86,452 | 125.7 | |||||||||||
EBITDA excluding non-cash items | $ | 155,244 | $ | 68,792 | |||||||||||||
Interest expense, net(2) | (31,515 | ) | (13,947 | ) | |||||||||||||
Adjustments to derivative instruments recorded in interest expense(2) | 5,353 | 1,094 | |||||||||||||||
Amortization of debt financing costs(2) | 1,615 | 1,041 | |||||||||||||||
Equipment lease receivable, net | - | 996 | |||||||||||||||
Benefit/provision for income taxes, net of changes in deferred taxes | (805 | ) | (2,047 | ) | |||||||||||||
Pension contribution | - | (310 | ) | ||||||||||||||
Changes in working capital | (12,876 | ) | 3,458 | ||||||||||||||
Cash provided by operating activities | 117,016 | 59,077 | |||||||||||||||
Changes in working capital | 12,876 | (3,458 | ) | ||||||||||||||
Maintenance capital expenditures | (6,115 | ) | (2,825 | ) | |||||||||||||
Free cash flow | $ | 123,777 | $ | 52,794 | 70,983 | 134.5 | |||||||||||
_________________ |
(1) Net (loss) income attributable to MIC LLC excludes net loss of $1.5 million and $206,000 attributable to noncontrolling interests for the quarters ended March 31, 2015 and 2014, respectively. |
(2) Interest expense, net, includes adjustments to derivative instruments related to interest rate swaps and non-cash amortization of deferred financing fees. |
(3) Depreciation - cost of services includes depreciation expense for our previously owned district energy business, a component of CP&E segment, which was reported in cost of services in our consolidated condensed statements of operations. Depreciation and Depreciation - cost of services did not include acquisition-related step-up depreciation expense of $2.0 million for the quarter ended March 31, 2014 in connection with our previous 50% investment in IMTT, which was reported in equity in earnings and amortization charges of investee in our consolidated condensed statement of operations. |
(4) Amortization of intangibles did not include acquisition-related step-up amortization expense of $85,000 for the quarter ended March 31, 2014 in connection with our previous 50% investment in IMTT, which was reported in equity in earnings and amortization charges of investee in our consolidated condensed statement 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. |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO PROPORTIONATELY COMBINED FREE CASH FLOW |
||||||||||||||||||
Quarter Ended March 31, |
Change
Favorable/(Unfavorable) |
|||||||||||||||||
2015 | 2014 | $ | % | |||||||||||||||
($ in Thousands) (Unaudited) |
||||||||||||||||||
Free Cash Flow- Consolidated basis | $ | 123,777 | $ | 52,794 | 70,983 | 134.5 | ||||||||||||
Equity distributions from investee(1) | - | (8,127 | ) | |||||||||||||||
100% of CP&E Free Cash Flow included in consolidated Free Cash Flow |
(2,689 | ) | (2,775 | ) | ||||||||||||||
MIC's share of IMTT Free Cash Flow(2) | - | 21,416 | ||||||||||||||||
MIC's share of CP&E Free Cash Flow | 1,593 | 1,612 | ||||||||||||||||
Free Cash Flow- Proportionately Combined basis | $ | 122,681 | $ | 64,920 | 57,761 | 89.0 | ||||||||||||
|
_________________ |
(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 COMPANY LLC RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||||||
IMTT | |||||||||||||||||||
Quarter Ended March 31, | |||||||||||||||||||
2015 | 2014 |
Change
Favorable/(Unfavorable) |
|||||||||||||||||
$ | $ | $ | % | ||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||
Revenues | 138,061 | 148,078 | (10,017 | ) | (6.8 | ) | |||||||||||||
Cost of services | 53,591 | 63,087 | 9,496 | 15.1 | |||||||||||||||
Gross Profit | 84,470 | 84,991 | (521 | ) | (0.6 | ) | |||||||||||||
General and administrative expenses | 7,704 | 7,866 | 162 | 2.1 | |||||||||||||||
Depreciation and amortization | 35,879 | 18,274 | (17,605 | ) | (96.3 | ) | |||||||||||||
Operating income | 40,887 | 58,851 | (17,964 | ) | (30.5 | ) | |||||||||||||
Interest expense, net(1) | (6,906 | ) | (7,133 | ) | 227 | 3.2 | |||||||||||||
Other income, net | 632 | 494 | 138 | 27.9 | |||||||||||||||
Provision for income taxes | (14,089 | ) | (21,102 | ) | 7,013 | 33.2 | |||||||||||||
Noncontrolling interest | (250 | ) | (129 | ) | (121 | ) | (93.8 | ) | |||||||||||
Net income(2) | 20,274 | 30,981 | (10,707 | ) | (34.6 | ) | |||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
|||||||||||||||||||
Net income(2) | 20,274 | 30,981 | |||||||||||||||||
Interest expense, net(1) | 6,906 | 7,133 | |||||||||||||||||
Provision for income taxes | 14,089 | 21,102 | |||||||||||||||||
Depreciation and amortization | 35,879 | 18,274 | |||||||||||||||||
Other non-cash expenses | 1,256 | 1,983 | |||||||||||||||||
EBITDA excluding non-cash items | 78,404 | 79,473 | (1,069 | ) | (1.3 | ) | |||||||||||||
EBITDA excluding non-cash items | 78,404 | 79,473 | |||||||||||||||||
Interest expense, net(1) | (6,906 | ) | (7,133 | ) | |||||||||||||||
Adjustments to derivative instruments recorded in interest expense(1) | (2,379 | ) | (4,136 | ) | |||||||||||||||
Amortization of debt financing costs(1) | 113 | 844 | |||||||||||||||||
Provision for income taxes, net of changes in deferred taxes | (577 | ) | (15,109 | ) | |||||||||||||||
Changes in working capital | (11,612 | ) | 5,248 | ||||||||||||||||
Cash provided by operating activities | 57,043 | 59,187 | |||||||||||||||||
Changes in working capital | 11,612 | (5,248 | ) | ||||||||||||||||
Maintenance capital expenditures | (2,471 | ) | (11,107 | ) | |||||||||||||||
Free cash flow | 66,184 | 42,832 | 23,352 | 54.5 | |||||||||||||||
_____________________ |
(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. |
Atlantic Aviation | |||||||||||||||||
Quarter Ended March 31, | |||||||||||||||||
2015 | 2014 |
Change
Favorable/(Unfavorable) |
|||||||||||||||
$ | $ | $ | % | ||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||
Revenues | 187,941 | 193,961 | (6,020 | ) | (3.1 | ) | |||||||||||
Cost of services | 79,826 | 106,752 | 26,926 | 25.2 | |||||||||||||
Gross Profit | 108,115 | 87,209 | 20,906 | 24.0 | |||||||||||||
Selling, general and administrative expenses | 52,009 | 47,243 | (4,766 | ) | (10.1 | ) | |||||||||||
Depreciation and amortization | 59,715 | 14,933 | (44,782 | ) | NM | ||||||||||||
Loss on disposal of assets | 545 | - | (545 | ) | NM | ||||||||||||
Operating (loss) income | (4,154 | ) | 25,033 | (29,187 | ) | (116.6 | ) | ||||||||||
Interest expense, net(1) | (13,085 | ) | (9,565 | ) | (3,520 | ) | (36.8 | ) | |||||||||
Other (expense) income | (27 | ) | 2 | (29 | ) | NM | |||||||||||
Benefit (provision) for income taxes | 15,639 | (4,915 | ) | 20,554 | NM | ||||||||||||
Net (loss) income(2) | (1,627 | ) | 10,555 | (12,182 | ) | (115.4 | ) | ||||||||||
Reconciliation of net (loss) income to EBITDA excluding non- cash items and cash provided by operating activities to Free Cash Flow: |
|||||||||||||||||
Net (loss) income(2) | (1,627 | ) | 10,555 | ||||||||||||||
Interest expense, net(1) | 13,085 | 9,565 | |||||||||||||||
(Benefit) provision for income taxes | (15,639 | ) | 4,915 | ||||||||||||||
Depreciation and amortization | 59,715 | 14,933 | |||||||||||||||
Loss on disposal of assets | 453 | - | |||||||||||||||
Other non-cash expenses | 272 | 68 | |||||||||||||||
EBITDA excluding non-cash items | 56,259 | 40,036 | 16,223 | 40.5 | |||||||||||||
EBITDA excluding non-cash items | 56,259 | 40,036 | |||||||||||||||
Interest expense, net(1) | (13,085 | ) | (9,565 | ) | |||||||||||||
Adjustments to derivative instruments recorded in interest expense(1) | 5,066 | 2,626 | |||||||||||||||
Amortization of debt financing costs(1) | 808 | 731 | |||||||||||||||
Benefit/provision for income taxes, net of changes in deferred taxes | (355 | ) | (1,244 | ) | |||||||||||||
Changes in working capital | (4,206 | ) | (971 | ) | |||||||||||||
Cash provided by operating activities | 44,487 | 31,613 | |||||||||||||||
Changes in working capital | 4,206 | 971 | |||||||||||||||
Maintenance capital expenditures | (2,623 | ) | (817 | ) | |||||||||||||
Free cash flow | 46,070 | 31,767 | 14,303 | 45.0 | |||||||||||||
_____________________ |
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 March 31, | ||||||||||||||||||
2015 | 2014 |
Change
Favorable/(Unfavorable) |
||||||||||||||||
$ | $ | $ | % | |||||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||||
Service revenues | - | 8,478 | (8,478 | ) | (100.0 | ) | ||||||||||||
Product revenues | 11,832 | 3,658 | 8,174 | NM | ||||||||||||||
Finance lease revenues | - | 747 | (747 | ) | (100.0 | ) | ||||||||||||
Total revenues | 11,832 | 12,883 | (1,051 | ) | (8.2 | ) | ||||||||||||
Cost of revenue — service(1) | - | 6,202 | 6,202 | 100.0 | ||||||||||||||
Cost of revenue — product | 2,647 | 860 | (1,787 | ) | NM | |||||||||||||
Cost of revenue — total | 2,647 | 7,062 | 4,415 | 62.5 | ||||||||||||||
Gross profit |
9,185 | 5,821 | 3,364 | 57.8 | ||||||||||||||
Selling, general and administrative expenses | 2,638 | 1,552 | (1,086 | ) | (70.0 | ) | ||||||||||||
Depreciation and amortization | 7,445 | 3,728 | (3,717 | ) | (99.7 | ) | ||||||||||||
Operating (loss) income | (898 | ) | 541 | (1,439 | ) | NM | ||||||||||||
Interest expense, net(2) | (6,338 | ) | (2,645 | ) | (3,693 | ) | (139.6 | ) | ||||||||||
Other income | 1,116 | 761 | 355 | 46.6 | ||||||||||||||
Benefit (provision) for income taxes | 818 | (599 | ) | 1,417 | NM | |||||||||||||
Noncontrolling interest | 1,763 | 527 | 1,236 | NM | ||||||||||||||
Net loss | (3,539 | ) | (1,415 | ) | (2,124 | ) | (150.1 | ) | ||||||||||
Reconciliation of net loss to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
||||||||||||||||||
Net loss | (3,539 | ) | (1,415 | ) | ||||||||||||||
Interest expense, net(2) | 6,338 | 2,645 | ||||||||||||||||
(Benefit) provision for income taxes | (818 | ) | 599 | |||||||||||||||
Depreciation and amortization (1) | 7,445 | 5,432 | ||||||||||||||||
Other non-cash income | (2,941 | ) | (765 | ) | ||||||||||||||
EBITDA excluding non-cash items | 6,485 | 6,496 | (11 | ) | (0.2 | ) | ||||||||||||
EBITDA excluding non-cash items | 6,485 | 6,496 | ||||||||||||||||
Interest expense, net(2) | (6,338 | ) | (2,645 | ) | ||||||||||||||
Adjustments to derivative instruments recorded in interest expense(2) | 2,527 | (1,525 | ) | |||||||||||||||
Amortization of debt financing costs(2) | 17 | 192 | ||||||||||||||||
Equipment lease receivable, net | - | 996 | ||||||||||||||||
Benefit/provision for income taxes, net of changes in deferred taxes | (2 | ) | (389 | ) | ||||||||||||||
Changes in working capital | 1,743 | 12,423 | ||||||||||||||||
Cash provided by operating activities | 4,432 | 15,548 | ||||||||||||||||
Changes in working capital | (1,743 | ) | (12,423 | ) | ||||||||||||||
Maintenance capital expenditures | - | (350 | ) | |||||||||||||||
Free cash flow | 2,689 | 2,775 | (86 | ) | (3.1 | ) | ||||||||||||
_____________________ |
NM - Not meaningful |
(1) Includes depreciation expense of $1.7 million related to the district energy business for the quarter ended March 31, 2014. |
(2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
Hawaii Gas | ||||||||||||||||
Quarter Ended March 31, | ||||||||||||||||
2015 | 2014 |
Change
Favorable/(Unfavorable) |
||||||||||||||
$ | $ | $ | % | |||||||||||||
($ In Thousands) (Unaudited) | ||||||||||||||||
Revenues | 60,664 | 69,351 | (8,687 | ) | (12.5 | ) | ||||||||||
Cost of product sales | 36,480 | 49,379 | 12,899 | 26.1 | ||||||||||||
Gross profit | 24,184 | 19,972 | 4,212 | 21.1 | ||||||||||||
Selling, general and administrative expenses | 5,356 | 5,623 | 267 | 4.7 | ||||||||||||
Depreciation and amortization | 2,354 | 2,258 | (96 | ) | (4.3 | ) | ||||||||||
Operating income | 16,474 | 12,091 | 4,383 | 36.3 | ||||||||||||
Interest expense, net(1) | (1,943 | ) | (1,787 | ) | (156 | ) | (8.7 | ) | ||||||||
Other expense | (144 | ) | (82 | ) | (62 | ) | (75.6 | ) | ||||||||
Provision for income taxes | (5,532 | ) | (4,027 | ) | (1,505 | ) | (37.4 | ) | ||||||||
Net income(2) | 8,855 | 6,195 | 2,660 | 42.9 | ||||||||||||
Reconciliation of net income to EBITDA excluding non-cash items and cash provided by operating activities to Free Cash Flow: |
||||||||||||||||
Net income(2) | 8,855 | 6,195 | ||||||||||||||
Interest expense, net(1) | 1,943 | 1,787 | ||||||||||||||
Provision for income taxes | 5,532 | 4,027 | ||||||||||||||
Depreciation and amortization | 2,354 | 2,258 | ||||||||||||||
Other non-cash (income) expenses | (1,830 | ) | 724 | |||||||||||||
EBITDA excluding non-cash items | 16,854 | 14,991 | 1,863 | 12.4 | ||||||||||||
EBITDA excluding non-cash items | 16,854 | 14,991 | ||||||||||||||
Interest expense, net(1) | (1,943 | ) | (1,787 | ) | ||||||||||||
Adjustments to derivative instruments recorded in interest expense(1) | 139 | (7 | ) | |||||||||||||
Amortization of debt financing costs(1) | 121 | 118 | ||||||||||||||
Provision for income taxes, net of changes in deferred taxes | - | (2,711 | ) | |||||||||||||
Pension contribution | - | (310 | ) | |||||||||||||
Changes in working capital | 2,523 | (5,488 | ) | |||||||||||||
Cash provided by operating activities | 17,694 | 4,806 | ||||||||||||||
Changes in working capital | (2,523 | ) | 5,488 | |||||||||||||
Maintenance capital expenditures | (1,021 | ) | (1,658 | ) | ||||||||||||
Free cash flow | 14,150 | 8,636 | 5,514 | 63.8 | ||||||||||||
_____________________ |
(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 March 31, | |||||||||||||||||
2015 | 2014 |
Change
Favorable/(Unfavorable) |
|||||||||||||||
$ | $ | $ | % | ||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||
Base management fees | 16,545 | 8,994 | (7,551 | ) | (84.0 | ) | |||||||||||
Performance fees | 148,728 | - | (148,728 | ) | NM | ||||||||||||
Selling, general and administrative expenses | 2,946 | 1,046 | (1,900 | ) | (181.6 | ) | |||||||||||
Operating loss | (168,219 | ) | (10,040 | ) | (158,179 | ) | NM | ||||||||||
Interest (expense) income, net(1) | (3,243 | ) | 50 | (3,293 | ) | NM | |||||||||||
Benefit for income taxes | 58,497 | 1,055 | 57,442 | NM | |||||||||||||
Noncontrolling interest | - | (321 | ) | 321 | 100.0 | ||||||||||||
Net loss(2) | (112,965 | ) | (9,256 | ) | (103,709 | ) | NM | ||||||||||
Reconciliation of net loss to EBITDA excluding non-cash items and cash used in operating activities to Free Cash Flow: |
|||||||||||||||||
Net loss(2) | (112,965 | ) | (9,256 | ) | |||||||||||||
Interest expense (income), net(1) | 3,243 | (50 | ) | ||||||||||||||
Benefit for income taxes | (58,497 | ) | (1,055 | ) | |||||||||||||
Base management fees to be settled/settled in shares | 16,545 | 8,994 | |||||||||||||||
Performance fee to be settled in shares | 148,728 | - | |||||||||||||||
Other non-cash expense | 188 | 509 | |||||||||||||||
EBITDA excluding non-cash items | (2,758 | ) | (858 | ) | (1,900 | ) | NM | ||||||||||
EBITDA excluding non-cash items | (2,758 | ) | (858 | ) | |||||||||||||
Interest (expense) income, net (1) | (3,243 | ) | 50 | ||||||||||||||
Amortization of debt financing costs(1) | 556 | - | |||||||||||||||
Benefit for income taxes, net of changes in deferred taxes | 129 | 2,297 | |||||||||||||||
Changes in working capital | (1,324 | ) | (2,506 | ) | |||||||||||||
Cash used in operating activities | (6,640 | ) | (1,017 | ) | |||||||||||||
Changes in working capital | 1,324 | 2,506 | |||||||||||||||
Free cash flow | (5,316 | ) | 1,489 | (6,805 | ) | NM | |||||||||||
_____________________ |
NM- Not meaningful |
(1) Interest (expense) income, net, includes 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. |
MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||||
/---------------------------------------------------For the Quarter Ended March 31, 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 LLC | 20,274 | (1,627) | (2,374) | 8,855 | (112,965) | (87,837) | (3,539) | |||||||||||
Interest expense, net(4) | 6,906 | 13,085 | 4,760 | 1,943 | 3,243 | 29,937 | 6,338 | |||||||||||
Provision (benefit) for income taxes | 14,089 | (15,639) | (818) | 5,532 | (58,497) | (55,333) | (818) | |||||||||||
Depreciation | 33,115 | 14,999 | 5,441 | 2,042 | - | 55,597 | 7,266 | |||||||||||
Amortization of intangibles | 2,764 | 44,716 | 133 | 312 | - | 47,925 | 179 | |||||||||||
Base management fee settled/to be settled in shares | - | - | - | - | 16,545 | 16,545 | - | |||||||||||
Performance fees to be settled in shares | - | - | - | - | 148,728 | 148,728 | - | |||||||||||
Loss on disposal of assets | - | 453 | - | - | - | 453 | - | |||||||||||
Other non-cash expense (income) | 1,256 | 272 | (2,691) | (1,830) | 188 | (2,805) | (2,941) | |||||||||||
EBITDA excluding non-cash items | 78,404 | 56,259 | 4,451 | 16,854 | (2,758) | 153,210 | 6,485 | |||||||||||
EBITDA excluding non-cash items | 78,404 | 56,259 | 4,451 | 16,854 | (2,758) | 153,210 | 6,485 | |||||||||||
Interest expense, net(4) | (6,906) | (13,085) | (4,760) | (1,943) | (3,243) | (29,937) | (6,338) | |||||||||||
Adjustments to derivative instruments recorded in interest expense, net(4) | (2,379) | 5,066 | 1,891 | 139 | - | 4,717 | 2,527 | |||||||||||
Amortization of deferred finance charges(4) | 113 | 808 | 13 | 121 | 556 | 1,611 | 17 | |||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (577) | (355) | (2) | - | 129 | (805) | (2) | |||||||||||
Changes in working capital | (11,612) | (4,206) | 1,354 | 2,523 | (1,324) | (13,265) | 1,743 | |||||||||||
Cash provided by (used in) operating activities | 57,043 | 44,487 | 2,947 | 17,694 | (6,640) | 115,531 | 4,432 | |||||||||||
Changes in working capital | 11,612 | 4,206 | (1,354) | (2,523) | 1,324 | 13,265 | (1,743) | |||||||||||
Maintenance capital expenditures | (2,471) | (2,623) | - | (1,021) | - | (6,115) | - | |||||||||||
Free cash flow | 66,184 | 46,070 | 1,593 | 14,150 | (5,316) | 122,681 | 2,689 | |||||||||||
/--------------------------------------------------------------For the Quarter Ended March 31, 2014----------------------------------------------------------------/ | |||||||||||||||||||
($ in Thousands) (Unaudited) |
IMTT 50% (5) |
Atlantic Aviation 100% |
Contracted Power and Energy(2) |
Hawaii Gas 100% |
MIC Corporate 100% |
Proportionately Combined(3) |
IMTT 100% (6) |
Contracted Power and Energy 100% |
|||||||||||
Net income (loss) attributable to MIC LLC | 15,491 | 10,555 | 525 | 6,195 | (9,256) | 23,510 | 30,981 | (1,415) | |||||||||||
Interest expense (income), net(4) | 3,567 | 9,565 | 1,731 | 1,787 | (50) | 16,600 | 7,133 | 2,645 | |||||||||||
Provision (benefit) for income taxes | 10,551 | 4,915 | 429 | 4,027 | (1,055) | 18,867 | 21,102 | 599 | |||||||||||
Depreciation | 8,905 | 6,802 | 3,354 | 1,946 | - | 21,007 | 17,809 | 5,110 | |||||||||||
Amortization of intangibles | 233 | 8,131 | 161 | 312 | - | 8,837 | 465 | 322 | |||||||||||
Base management fee settled in shares | - | - | - | - | 8,994 | 8,994 | - | - | |||||||||||
Other non-cash expense (income) | 992 | 68 | (2,323) | 724 | 509 | (30) | 1,983 | (765) | |||||||||||
EBITDA excluding non-cash items | 39,737 | 40,036 | 3,878 | 14,991 | (858) | 97,783 | 79,473 | 6,496 | |||||||||||
EBITDA excluding non-cash items | 39,737 | 40,036 | 3,878 | 14,991 | (858) | 97,783 | 79,473 | 6,496 | |||||||||||
Interest (expense) income, net(4) | (3,567) | (9,565) | (1,731) | (1,787) | 50 | (16,600) | (7,133) | (2,645) | |||||||||||
Adjustments to derivative instruments recorded in interest expense, net (4) | (2,068) | 2,626 | (763) | (7) | - | (212) | (4,136) | (1,525) | |||||||||||
Amortization of deferred finance charges(4) | 422 | 731 | 101 | 118 | - | 1,372 | 844 | 192 | |||||||||||
Equipment lease receivables, net | - | - | 498 | - | - | 498 | - | 996 | |||||||||||
Provision/benefit for income taxes, net of changes in deferred taxes | (7,555) | (1,244) | (196) | (2,711) | 2,297 | (9,408) | (15,109) | (389) | |||||||||||
Pension contribution | - | - | - | (310) | - | (310) | - | - | |||||||||||
Changes in working capital | 2,624 | (971) | 10,530 | (5,488) | (2,506) | 4,189 | 5,248 | 12,423 | |||||||||||
Cash provided by (used in) operating activities | 29,594 | 31,613 | 12,318 | 4,806 | (1,017) | 77,313 | 59,187 | 15,548 | |||||||||||
Changes in working capital | (2,624) | 971 | (10,530) | 5,488 | 2,506 | (4,189) | (5,248) | (12,423) | |||||||||||
Maintenance capital expenditures | (5,554) | (817) | (175) | (1,658) | - | (8,204) | (11,107) | (350) | |||||||||||
Free cash flow | 21,416 | 31,767 | 1,612 | 8,636 | 1,489 | 64,920 | 42,832 | 2,775 | |||||||||||
___________________________ |
(1) Represents our 100% ownership interest in IMTT subsequent to July 16, 2014. |
(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. |
(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) income, net, includes adjustments to derivative instruments related to interest rate swaps and non-cash amortization of deferred financing fees. |
(5) Our proportionate interest in IMTT prior to the acquisition of the remaining 50% interest on July 16, 2014. |
(6) Represents 100% of IMTT as a stand-alone business. |