NEW YORK, Aug. 3, 2021 /PRNewswire/ -- Macquarie
Infrastructure Corporation (NYSE: MIC) (the "Company") today
provided an update on the previously announced sales of its
Atlantic Aviation and MIC Hawaii businesses and reported its
operational and financial results for the second quarter of
2021.
"The increase in general aviation flight activity drove strong
results in the quarter for Atlantic Aviation," said Christopher Frost, chief executive officer of
MIC. "Within our MIC Hawaii segment, we benefited from an increase
in visitor arrivals in Hawaii."
Update on Announced Sales
On June 7, 2021, MIC announced the
sale of its Atlantic Aviation business (the "AA Transaction") to a
newly formed entity controlled by KKR for $4.475 billion. On July
15, 2021, the waiting period for the Federal Trade
Commission's review of the AA Transaction under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired
without comment.
The MIC Board of Directors set August 23,
2021 as the record date for a Special Meeting of
Shareholders to be held at 10:00 am Eastern
time on September 21, 2021. At
the meeting, shareholders will be asked to approve the AA
Transaction. If approved, MIC expects the AA Transaction to close
at the end of the third quarter of 2021 and result in a
distribution of approximately $37.35
per unit.
On June 14, 2021, MIC announced
the merger of its MIC Hawaii businesses (the "MH Merger") into a
newly formed entity managed by Argo Infrastructure Partners
("Argo") for $3.83 per unit.
On July 7, 2021, together with MIC
Hawaii and Argo, the Company filed a petition with the Hawaii
Public Utilities Commission seeking approval of the change of
control over the regulated portion of Hawaii Gas as contemplated in
the MH Merger. The approval process is expected to conclude in the
first half of 2022. Shareholders will be asked to approve the MH
Merger, in addition to the AA Transaction, at the September 21, 2021 Special Meeting of
Shareholders.
Operational and Financial Results
MIC's results for the second quarter of 2021 reflect solid
performance by its Atlantic Aviation subsidiary on the strength of
the recovery in domestic general aviation flight activity and a
continued positive trajectory in the performance of its MIC Hawaii
businesses as tourism in Hawaii
recovers from COVID-induced lows.
MIC recorded net income from continuing operations of
$6.9 million compared with a net loss
of $24.4 million in the second
quarter of 2020 ("prior comparable period"). The improvement
reflects primarily higher revenue and lower interest expense,
partially offset by increases in operating expenses and income
taxes.
The Company reported Adjusted EBITDA excluding non-cash items
from continuing operations of $77.9
million for the quarter, versus $18.6
million in the prior comparable period.
MIC used $79.5 million of cash
from operating activities during the quarter ended June 30, 2021 compared with cash provided by
operating activities of $17.8 million
in the prior comparable period. The change primarily reflects the
payment of capital gains taxes related to the sale of the Company's
IMTT business, partially offset by higher EBITDA excluding non-cash
items.
The Company reported Adjusted Free Cash Flow from continuing
operations of $51.6 million for the
quarter, versus $1.2 million in the
prior comparable period. The increase reflects higher EBITDA
excluding non-cash items and lower cash interest, partially offset
by higher cash taxes and maintenance capital expenditures.
Second Quarter 2021 Segment Results
Atlantic Aviation
Atlantic Aviation generated EBITDA excluding non-cash items of
$70.3 million in the second quarter
of 2021, up from $16.9 million in the
prior comparable period and above the $61.9
million recorded in the second quarter of 2019. The result
was driven by a substantial recovery in general aviation flight
activity (take offs and landings) versus the second quarter in
2020.
As reported by the Federal Aviation Administration, same store
general aviation flight activity at airports on which Atlantic
Aviation operates increased by 137% in the second quarter compared
with the second quarter of 2020 and increased by 11% versus the
second quarter of 2019. The activity was substantially domestic in
nature and was strongest at predominantly leisure-oriented
destinations in the Intermountain West and Florida. Although activity at
business-oriented destinations increased during the quarter, it
remains below industry average and pre-pandemic levels.
MIC Hawaii
MIC Hawaii generated EBITDA excluding non-cash items of
$11.1 million in the second quarter
of 2021, up from $7.2 million in the
second quarter of 2020 and down from $14.3
million in the second quarter in 2019. The result reflects
the ongoing recovery in the number of visitors to Hawaii from the lows in 2020, although not yet
to the historically high levels of 2019, partially offset by a
higher cost of purchased propane.
Commercial and industrial gas consumption increased during the
quarter with the higher number of visitor arrivals while
residential gas consumption was stable. Total gas consumption
increased by 54% versus the second quarter in 2020 but was 8% below
consumption in the second quarter of 2019.
Corporate and Other
MIC's Corporate and Other segment result primarily includes fees
payable to the Company's external manager, public company expenses
and interest expense on holding company level debt. Higher
expenditures in the second quarter of 2021, including costs
incurred in connection with efforts to sell the Company's operating
businesses, resulted in the generation of EBITDA excluding non-cash
items of ($10.1) million compared
with ($7.3) million the second
quarter of 2020.
Discontinuing Financial Guidance
With the announced sales of Atlantic Aviation and MIC Hawaii,
the Company will no longer provide outlook on the performance of
its businesses and is withdrawing its previously provided
guidance.
Summary Financial Information
|
Quarter
Ended
June
30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/
(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Share and Per Share Data) (Unaudited)
|
GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
6,933
|
|
|
$
|
(24,429)
|
|
|
31,362
|
|
|
128
|
|
|
$
|
20,730
|
|
|
$
|
(31,417)
|
|
|
52,147
|
|
|
166
|
|
Net income (loss) per
share attributable to MIC
|
0.08
|
|
|
(0.29)
|
|
|
0.37
|
|
|
128
|
|
|
0.23
|
|
|
(0.37)
|
|
|
0.60
|
|
|
162
|
|
Cash (used in)
provided by operating activities
|
(79,539)
|
|
|
17,779
|
|
|
(97,318)
|
|
|
NM
|
|
|
(39,546)
|
|
|
69,319
|
|
|
(108,865)
|
|
|
(157)
|
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
—
|
|
|
$
|
17,131
|
|
|
(17,131)
|
|
|
(100)
|
|
|
$
|
—
|
|
|
$
|
35,346
|
|
|
(35,346)
|
|
|
(100)
|
|
Net income per share
attributable to MIC
|
—
|
|
|
0.20
|
|
|
(0.20)
|
|
|
(100)
|
|
|
—
|
|
|
0.41
|
|
|
(0.41)
|
|
|
(100)
|
|
Cash provided by
operating activities
|
—
|
|
|
54,588
|
|
|
(54,588)
|
|
|
(100)
|
|
|
—
|
|
|
103,276
|
|
|
(103,276)
|
|
|
(100)
|
|
Weighted average
number of shares outstanding: basic
|
87,628,429
|
|
|
86,871,892
|
|
|
756,537
|
|
|
1
|
|
|
87,520,541
|
|
|
86,779,432
|
|
|
741,109
|
|
|
1
|
|
MIC Non-GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
71,278
|
|
|
$
|
16,878
|
|
|
54,400
|
|
|
NM
|
|
|
$
|
143,928
|
|
|
$
|
81,342
|
|
|
62,586
|
|
|
77
|
|
Investment and
acquisition/disposition costs
|
6,596
|
|
|
1,719
|
|
|
4,877
|
|
|
NM
|
|
|
10,875
|
|
|
12,826
|
|
|
(1,951)
|
|
|
(15)
|
|
Adjusted EBITDA
excluding non - cash items–continuing operations
|
77,874
|
|
|
18,597
|
|
|
59,277
|
|
|
NM
|
|
|
154,803
|
|
|
94,168
|
|
|
60,635
|
|
|
64
|
|
Cash
interest
|
(15,387)
|
|
|
(19,264)
|
|
|
3,877
|
|
|
20
|
|
|
(28,442)
|
|
|
(37,834)
|
|
|
9,392
|
|
|
25
|
|
Cash taxes
|
(4,730)
|
|
|
5,638
|
|
|
(10,368)
|
|
|
(184)
|
|
|
(7,939)
|
|
|
818
|
|
|
(8,757)
|
|
|
NM
|
|
Maintenance capital
expenditures
|
(6,140)
|
|
|
(3,738)
|
|
|
(2,402)
|
|
|
(64)
|
|
|
(9,804)
|
|
|
(9,452)
|
|
|
(352)
|
|
|
(4)
|
|
Adjusted Free Cash
Flow - continuing operations
|
$
|
51,617
|
|
|
$
|
1,233
|
|
|
50,384
|
|
|
NM
|
|
|
$
|
108,618
|
|
|
$
|
47,700
|
|
|
60,918
|
|
|
128
|
|
EBITDA excluding
non-cash items - discontinued operations
|
$
|
—
|
|
|
$
|
67,689
|
|
|
(67,689)
|
|
|
(100)
|
|
|
$
|
—
|
|
|
$
|
145,336
|
|
|
(145,336)
|
|
|
(100)
|
|
Cash
interest
|
—
|
|
|
(10,059)
|
|
|
10,059
|
|
|
100
|
|
|
—
|
|
|
(19,828)
|
|
|
19,828
|
|
|
100
|
|
Cash taxes
|
—
|
|
|
(847)
|
|
|
847
|
|
|
100
|
|
|
—
|
|
|
(2,954)
|
|
|
2,954
|
|
|
100
|
|
Maintenance capital
expenditures
|
—
|
|
|
(12,872)
|
|
|
12,872
|
|
|
100
|
|
|
—
|
|
|
(18,487)
|
|
|
18,487
|
|
|
100
|
|
Free Cash Flow -
discontinued operations
|
$
|
—
|
|
|
$
|
43,911
|
|
|
(43,911)
|
|
|
(100)
|
|
|
$
|
—
|
|
|
$
|
104,067
|
|
|
(104,067)
|
|
|
(100)
|
|
Adjusted Free Cash
Flow - consolidated
|
$
|
51,617
|
|
|
$
|
45,144
|
|
|
6,473
|
|
|
14
|
|
|
$
|
108,618
|
|
|
$
|
151,767
|
|
|
(43,149)
|
|
|
(28)
|
|
___________________
|
NM — Not
meaningful.
|
About MIC
MIC owns and operates businesses providing basic services to
customers in the United States.
Its businesses consist of an airport services business, Atlantic
Aviation; and entities comprising an energy services, production
and distribution segment, MIC Hawaii. For additional information,
please visit the MIC website at www.macquarie.com/mic.
Use of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) excluding non-cash items and Free Cash
Flow
In addition to MIC's results under U.S. GAAP, the Company uses
the non-GAAP measures EBITDA excluding non-cash items and Free Cash
Flow to assess the performance and prospects of its businesses.
MIC measures EBITDA excluding non-cash items as a reflection of
its businesses' ability to effectively manage the volume of
products sold or services provided, the operating margin earned on
those transactions and the management of operating expenses
independent of the capitalization and tax attributes of those
businesses. The Company believes investors use EBITDA excluding
non-cash items primarily to assess the operating performance of its
businesses and to make comparisons with the operating performance
of other businesses whose depreciation and amortization expense may
vary widely from MIC's, particularly where acquisitions and other
non-operating factors are involved. MIC defines EBITDA excluding
non-cash items as net income (loss) or earnings —the most
comparable GAAP measure— before interest, taxes, depreciation and
amortization and non-cash items including impairments, unrealized
derivative gains and losses, adjustments for other non-cash items
and pension expense reflected in the statements of operations.
Other non-cash expenses, net, excludes the adjustment to bad debt
expense related to the specific reserve component, net of
recoveries. EBITDA excluding non-cash items also excludes base
management fees and performance fees, if any, whether paid in cash
or stock.
The Company's businesses can be characterized as owners of
high-value, long-lived assets capable of generating substantial
Free Cash Flow. MIC defines Free Cash Flow as cash from operating
activities —the most comparable GAAP measure —less maintenance
capital expenditures and adjusted for changes in working
capital.
Management uses Free Cash Flow as a measure of its ability to
fund acquisitions, invest in growth projects, reduce, or repay
indebtedness and/or return capital to shareholders. GAAP metrics
such as net income (loss) do not provide MIC management with the
same level of visibility into the performance and prospects of the
business as a result of: (i) the capital intensive nature of MIC's
businesses and the generation of non-cash depreciation and
amortization; (ii) shares issued to the Company's external manager
under the Management Services Agreement, (iii) the Company's
ability to defer all or a portion of current federal income taxes;
(iv) non-cash mark-to-market adjustment of the value of derivative
instruments; (v) gains (losses) related to the write-off or
disposal of assets or liabilities, (vi) non-cash compensation
expense incurred in relation to the incentive plans for senior
management of the Company's operating business; and (vii) pension
expense. Pension expenses primarily consist of interest expense,
expected return on plan assets and amortization of actuarial and
performance gains and losses. Any cash contributions to pension
plans are reflected as a reduction in Free Cash Flow and are not
included in pension expense. Management believes that external
consumers of its financial statements, including investors and
research analysts, use Free Cash Flow to assess the Company's
ability to fund acquisitions, invest in growth projects, reduce or
repay indebtedness, and/or return capital to shareholders.
In its Quarterly Report on Form 10-Q, the Company has disclosed
Free Cash Flow on a consolidated basis and for each of its
operating segments and MIC Corporate and Other. Management believes
that both EBITDA excluding non-cash items and Free Cash Flow
support a more complete and accurate understanding of the financial
and operating performance of its businesses than would otherwise be
achieved using GAAP results alone.
Free Cash Flow does not take into consideration required
payments on indebtedness and other fixed obligations or other cash
items that are excluded from MIC's definition of Free Cash Flow.
Management notes that Free Cash Flow may be calculated differently
by other companies thereby limiting its usefulness as a comparative
measure. Free Cash Flow should be used as a supplemental measure to
help understand MIC's financial performance and not in lieu of its
financial results reported under GAAP.
See the tables below for a reconciliation of Net Income (loss)
to EBITDA excluding non-cash items from continuing operations and a
reconciliation of cash provided by operating activities from
continuing operations to Free Cash Flow from continuing
operations.
Classification of Maintenance Capital Expenditures and Growth
Capital Expenditures
MIC categorizes capital expenditures as either maintenance
capital expenditures or growth capital expenditures. As neither
maintenance capital expenditure nor growth capital expenditure is a
GAAP term, the Company has adopted a framework to categorize
specific capital expenditures. In broad terms, maintenance capital
expenditures primarily maintain MIC's businesses at current levels
of operations, capability, profitability, or cash flow, while
growth capital expenditures primarily provide new or enhanced
levels of operations, capability, profitability, or cash flow.
Management considers various factors in determining whether a
specific capital expenditure will be classified as maintenance or
growth.
MIC does not bifurcate specific capital expenditures into growth
and maintenance components. Each discrete capital expenditure is
considered within the above framework and the entire capital
expenditure is classified as either maintenance or growth.
Important Information For Investors And Stockholders
In connection with the proposed transactions, Macquarie
Infrastructure Corporation (the "Company") has filed a proxy
statement with the Securities and Exchange Commission ("SEC") on
July 15, 2021, the definitive version
of which will be mailed to stockholders of the Company.
INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE STRONGLY
ENCOURAGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS THAT ARE
FILED OR WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION.
Investors and security holders are able to obtain free copies of
the proxy statement and other documents filed with the SEC by the
Company through the website maintained by the SEC at
https://www.sec.gov. Copies of the documents filed with the
SEC by the Company will also be available free of charge on the
Company website at www.macquarie.com/mic or by writing to us
at 125 West 55th Street, New York, New
York 10019, United States of
America, Attention: Investor Relations.
Certain Information Regarding Participants
The Company and its directors and executive officers may be
considered participants in the solicitation of proxies in
connection with the proposed transactions. Information about
the directors and executive officers of the Company is set forth in
its Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC
on February 17, 2021, and its
definitive proxy statement for its 2021 annual meeting of
stockholders, which was filed with the SEC on March 29, 2021. Other information regarding
the participants of the Company in the proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the proxy statement and
other relevant materials to be filed with the SEC regarding the
transaction when they become available.
Disclaimer on Forward Looking Statements
This communication contains forward-looking statements.
The Company 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. Such statements include,
among others, those concerning the Company's expected financial
performance and strategic and operational plans, statements
regarding sales of the Company's operating businesses (including
the Company's reorganization) and the anticipated uses of any
proceeds therefrom, statements regarding the anticipated specific
and overall impacts of the COVID-19 pandemic, as well as all
assumptions, expectations, predictions, intentions or beliefs about
future events. Forward-looking statements in this
communication are subject to a number of risks and uncertainties,
some of which are beyond the Company's control, including, among
other things: changes in general economic or business conditions;
the ongoing impact of the COVID-19 pandemic; the Company's ability
to complete the sales of its operating businesses; uncertainties as
to the timing of the consummation of the proposed transactions; the
risk that conditions to closing of the proposed transactions are
not satisfied, including the failure to timely obtain the requisite
stockholder approvals or regulatory clearances; the occurrence of
any event giving rise to a termination of the proposed
transactions; the Company's ability to service, comply with the
terms of and refinance debt; its ability to retain or replace
qualified employees; in the absence of a sale or sales of its
businesses, its ability to complete growth projects, deploy growth
capital and manage growth, make and finance future acquisitions and
implement its strategy; the regulatory environment; demographic
trends; the political environment; the economy, tourism,
construction and transportation costs; air travel; environmental
costs and risks; fuel and gas and other commodity costs; the
Company's ability to recover increases in costs from customers;
cybersecurity risks; work interruptions or other labor stoppages;
risks associated with acquisitions or dispositions; litigation
risks; reliance on sole or limited source suppliers, risks or
conflicts of interests involving the Company's relationship with
the Macquarie Group; and changes in U.S. federal tax law.
These and other risks and uncertainties are described under the
caption "Risk Factors" in Item 1A of the Company's Annual Report on
Form 10-K for the year ended December 31,
2020 and in its other reports filed from time to time with
the SEC.
The Company'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 the Company 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 communication may not occur. These forward-looking
statements are made as of the date of this communication. The
Company 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
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
($ in Thousands,
Except Share Data)
|
|
|
June
30,
2021
|
|
December
31,
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
319,690
|
|
|
$
|
1,828,063
|
|
Restricted
cash
|
11,790
|
|
|
11,157
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
55,057
|
|
|
46,862
|
|
Inventories
|
19,663
|
|
|
16,551
|
|
Prepaid
expenses
|
13,385
|
|
|
8,326
|
|
Other current
assets
|
12,101
|
|
|
9,197
|
|
Total current
assets
|
431,686
|
|
|
1,920,156
|
|
Property, equipment,
land and leasehold improvements, net
|
849,530
|
|
|
854,200
|
|
Operating lease
assets, net
|
321,941
|
|
|
322,892
|
|
Goodwill
|
617,072
|
|
|
616,939
|
|
Intangible assets,
net
|
441,012
|
|
|
457,587
|
|
Other noncurrent
assets
|
8,863
|
|
|
6,865
|
|
Total
assets
|
$
|
2,670,104
|
|
|
$
|
4,178,639
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Due to
Manager-related party
|
$
|
2,755
|
|
|
$
|
1,203
|
|
Accounts
payable
|
31,406
|
|
|
30,470
|
|
Accrued
expenses
|
50,177
|
|
|
46,112
|
|
Current portion of
long-term debt
|
11,333
|
|
|
11,310
|
|
Dividend
payable
|
—
|
|
|
960,981
|
|
Operating lease
liabilities - current
|
17,069
|
|
|
17,157
|
|
Income taxes
payable
|
3,200
|
|
|
132,113
|
|
Other current
liabilities
|
24,121
|
|
|
22,861
|
|
Total current
liabilities
|
140,061
|
|
|
1,222,207
|
|
Long-term debt, net
of current portion
|
1,097,923
|
|
|
1,554,359
|
|
Deferred income
taxes
|
132,738
|
|
|
126,858
|
|
Operating lease
liabilities - noncurrent
|
311,122
|
|
|
311,597
|
|
Other noncurrent
liabilities
|
64,893
|
|
|
70,312
|
|
Total
liabilities
|
1,746,737
|
|
|
3,285,333
|
|
Commitments and
contingencies
|
—
|
|
|
—
|
|
Stockholders'
equity(1):
|
|
|
|
Common Stock ($0.001
par value; 500,000,000 authorized; 87,780,539 shares issued and
outstanding on June 30, 2021 and
87,361,929 shares issued and outstanding on December 31,
2020)
|
$
|
88
|
|
|
$
|
87
|
|
Additional paid in
capital
|
180,346
|
|
|
177,975
|
|
Accumulated other
comprehensive loss
|
(6,175)
|
|
|
(6,175)
|
|
Retained
earnings
|
740,640
|
|
|
713,129
|
|
Total stockholders'
equity
|
914,899
|
|
|
885,016
|
|
Noncontrolling
interests
|
8,468
|
|
|
8,290
|
|
Total
equity
|
923,367
|
|
|
893,306
|
|
Total liabilities and
equity
|
$
|
2,670,104
|
|
|
$
|
4,178,639
|
|
_____________________
|
(1)
|
The Company is
authorized to issue 100,000,000 shares of preferred stock, par
value $0.001 per share authorized. On June 30, 2021 and December
31, 2020, no preferred stocks were issued or outstanding. The
Company had 100 shares of special stock, par value $0.001 per
share, issued and outstanding to its Manager on June 30, 2021 and
December 31, 2020.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
($ in Thousands,
Except Share and Per Share Data)
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
Service
revenue
|
$
|
230,037
|
|
|
$
|
104,318
|
|
|
$
|
439,641
|
|
|
$
|
328,315
|
|
Product
revenue
|
58,740
|
|
|
36,795
|
|
|
113,327
|
|
|
97,257
|
|
Total
revenue
|
288,777
|
|
|
141,113
|
|
|
552,968
|
|
|
425,572
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of
services
|
99,534
|
|
|
29,280
|
|
|
181,767
|
|
|
123,943
|
|
Cost of product
sales
|
37,834
|
|
|
18,225
|
|
|
72,590
|
|
|
60,159
|
|
Selling, general and
administrative
|
80,822
|
|
|
73,049
|
|
|
157,834
|
|
|
160,632
|
|
Fees to Manager -
related party
|
7,551
|
|
|
3,824
|
|
|
13,103
|
|
|
11,180
|
|
Depreciation
|
19,629
|
|
|
19,745
|
|
|
38,860
|
|
|
39,271
|
|
Amortization of
intangibles
|
8,287
|
|
|
9,273
|
|
|
16,575
|
|
|
20,278
|
|
Total operating
expenses
|
253,657
|
|
|
153,396
|
|
|
480,729
|
|
|
415,463
|
|
Operating income
(loss)
|
35,120
|
|
|
(12,283)
|
|
|
72,239
|
|
|
10,109
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
41
|
|
|
189
|
|
|
202
|
|
|
657
|
|
Interest
expense(1)
|
(16,773)
|
|
|
(23,639)
|
|
|
(35,392)
|
|
|
(50,344)
|
|
Other income
(expense), net
|
793
|
|
|
46
|
|
|
1,295
|
|
|
(100)
|
|
Net income (loss)
from continuing operations before income taxes
|
19,181
|
|
|
(35,687)
|
|
|
38,344
|
|
|
(39,678)
|
|
(Provision) benefit
for income taxes
|
(12,248)
|
|
|
11,258
|
|
|
(17,614)
|
|
|
8,261
|
|
Net income (loss)
from continuing operations
|
6,933
|
|
|
(24,429)
|
|
|
20,730
|
|
|
(31,417)
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations(2)
|
|
|
|
|
|
|
|
Net income from
discontinued operations before income taxes
|
—
|
|
|
22,371
|
|
|
—
|
|
|
46,916
|
|
Provision for income
taxes
|
—
|
|
|
(5,240)
|
|
|
—
|
|
|
(11,570)
|
|
Net income from
discontinued operations
|
—
|
|
|
17,131
|
|
|
—
|
|
|
35,346
|
|
Net income
(loss)
|
6,933
|
|
|
(7,298)
|
|
|
20,730
|
|
|
3,929
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
6,933
|
|
|
(24,429)
|
|
|
20,730
|
|
|
(31,417)
|
|
Less: net (loss)
income attributable to noncontrolling interest
|
(416)
|
|
|
656
|
|
|
181
|
|
|
581
|
|
Net income (loss)
from continuing operations attributable to MIC
|
7,349
|
|
|
(25,085)
|
|
|
20,549
|
|
|
(31,998)
|
|
Net income from
discontinued operations
|
—
|
|
|
17,131
|
|
|
—
|
|
|
35,346
|
|
Net income from
discontinued operations attributable to MIC
|
—
|
|
|
17,131
|
|
|
—
|
|
|
35,346
|
|
Net income (loss)
attributable to MIC
|
$
|
7,349
|
|
|
$
|
(7,954)
|
|
|
$
|
20,549
|
|
|
$
|
3,348
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per share from continuing operations attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.29)
|
|
|
$
|
0.23
|
|
|
$
|
(0.37)
|
|
Basic income per
share from discontinued operations attributable to MIC
|
—
|
|
|
0.20
|
|
|
—
|
|
|
0.41
|
|
Basic income (loss)
per share attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.09)
|
|
|
$
|
0.23
|
|
|
$
|
0.04
|
|
Weighted average
number of shares outstanding: basic
|
87,628,429
|
|
|
86,871,892
|
|
|
87,520,541
|
|
|
86,779,432
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share from continuing operations attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.29)
|
|
|
$
|
0.23
|
|
|
$
|
(0.37)
|
|
Diluted income per
share from discontinued operations attributable to MIC
|
—
|
|
|
0.20
|
|
|
—
|
|
|
0.41
|
|
Diluted income (loss)
per share attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.09)
|
|
|
$
|
0.23
|
|
|
$
|
0.04
|
|
Weighted average
number of shares outstanding: diluted
|
87,728,174
|
|
|
86,871,892
|
|
|
87,612,379
|
|
|
86,779,432
|
|
____________________
|
(1)
|
Interest expense
includes non-cash losses on derivative instruments of $78,000 and
non-cash gains of $203,000 for the quarter and six months ended
June 30, 2021, respectively, compared with non-cash losses of
$172,000 and $4.4 million for the quarter and six months ended June
30, 2020, respectively.
|
|
|
(2)
|
See Note 4,
"Discontinued Operations and Dispositions", in our Notes to
Consolidated Condensed Financial Statements in Part I of Form 10-Q
for the quarter ended June 30, 2021, for discussions on businesses
classified as held for sale.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
($ in
Thousands)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
Net income (loss)
from continuing operations
|
$
|
20,730
|
|
|
$
|
(31,417)
|
|
Adjustments to
reconcile net income (loss) to net cash (used in) provided by
operating activities from continuing operations:
|
|
|
|
Depreciation
|
38,860
|
|
|
39,271
|
|
Amortization of
intangibles
|
16,575
|
|
|
20,278
|
|
Write-off of debt
financing costs
|
4,562
|
|
|
1,468
|
|
Amortization of debt
discount and financing costs
|
2,476
|
|
|
5,218
|
|
Adjustments to
derivative instruments
|
(5,153)
|
|
|
1,192
|
|
Fees to Manager -
related party
|
13,103
|
|
|
11,180
|
|
Deferred
taxes
|
9,675
|
|
|
(7,443)
|
|
Other non-cash
expense, net
|
6,647
|
|
|
4,944
|
|
Changes in other
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(8,136)
|
|
|
25,756
|
|
Inventories
|
(3,720)
|
|
|
6,079
|
|
Prepaid expenses and
other current assets
|
(5,480)
|
|
|
(2,734)
|
|
Due to Manager -
related party
|
—
|
|
|
(41)
|
|
Accounts payable and
accrued expenses
|
3,988
|
|
|
(13,010)
|
|
Income taxes
payable
|
(128,085)
|
|
|
(2,263)
|
|
Other, net
|
(5,588)
|
|
|
10,841
|
|
Net cash (used in)
provided by operating activities from continuing
operations
|
(39,546)
|
|
|
69,319
|
|
Investing
activities
|
|
|
|
Acquisitions of
businesses and investments, net of cash, cash equivalents, and
restricted cash acquired
|
—
|
|
|
(13,495)
|
|
Purchases of property
and equipment
|
(32,864)
|
|
|
(29,285)
|
|
Other, net
|
59
|
|
|
11
|
|
Net cash used in
investing activities from continuing operations
|
(32,805)
|
|
|
(42,769)
|
|
Financing
activities
|
|
|
|
Proceeds from
long-term debt
|
—
|
|
|
874,000
|
|
Payment of long-term
debt
|
(474,113)
|
|
|
(280,874)
|
|
Dividends paid to
common stockholders
|
(960,981)
|
|
|
(86,742)
|
|
Distributions paid to
noncontrolling interest
|
(3)
|
|
|
—
|
|
Debt financing costs
paid
|
(292)
|
|
|
(386)
|
|
Net cash (used in)
provided by financing activities from continuing
operations
|
(1,435,389)
|
|
|
505,998
|
|
Net change in cash,
cash equivalents, and restricted cash from continuing
operations
|
(1,507,740)
|
|
|
532,548
|
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH
FLOWS – (continued)
|
(Unaudited)
|
($ in
Thousands)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
Cash flows
provided by (used in) discontinued operations:
|
|
|
|
Net cash provided by
operating activities
|
$
|
—
|
|
|
$
|
103,276
|
|
Net cash used in
investing activities
|
—
|
|
|
(106,003)
|
|
Net cash used in
discontinued operations
|
—
|
|
|
(2,727)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
—
|
|
|
(222)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
(1,507,740)
|
|
|
529,599
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,839,220
|
|
|
358,565
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
331,480
|
|
|
$
|
888,164
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
Accrued purchases of
property and equipment from continuing operations
|
$
|
6,231
|
|
|
$
|
3,317
|
|
Accrued purchases of
property and equipment from discontinued operations
|
—
|
|
|
15,939
|
|
Accrued debt financing
costs from continuing operations
|
—
|
|
|
59
|
|
Leased
assets obtained in exchange for new operating lease liabilities
from continuing
operations
|
806
|
|
|
5,267
|
|
Leased
assets obtained in exchange for new operating lease liabilities
from discontinued
operations
|
—
|
|
|
726
|
|
Taxes paid, net, from
continuing operations
|
135,894
|
|
|
1,444
|
|
Taxes paid, net, from
discontinued operations
|
—
|
|
|
2,653
|
|
Interest paid, net,
from continuing operations
|
32,899
|
|
|
39,205
|
|
Interest paid, net,
from discontinued operations
|
—
|
|
|
19,689
|
|
The following table provides a reconciliation of cash, cash
equivalents, and restricted cash from both continuing and
discontinued operations reported within the consolidated condensed
balance sheets that is presented in the consolidated condensed
statements of cash flows:
|
As of June
30,
|
|
2021
|
|
2020
|
Cash and cash
equivalents
|
$
|
319,690
|
|
|
$
|
845,604
|
|
Restricted cash -
current
|
11,790
|
|
|
13,721
|
|
Cash, cash
equivalents, and restricted cash included in assets held for
sale
|
—
|
|
|
28,839
|
|
Total of cash, cash
equivalents, and restricted cash shown in the consolidated
condensed statements of cash flows
|
$
|
331,480
|
|
|
$
|
888,164
|
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS – MD&A
|
|
|
Quarter
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Share and Per Share Data) (Unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
$
|
230,037
|
|
|
$
|
104,318
|
|
|
125,719
|
|
|
121
|
|
|
$
|
439,641
|
|
|
$
|
328,315
|
|
|
111,326
|
|
|
34
|
|
Product
revenue
|
58,740
|
|
|
36,795
|
|
|
21,945
|
|
|
60
|
|
|
113,327
|
|
|
97,257
|
|
|
16,070
|
|
|
17
|
|
Total
revenue
|
288,777
|
|
|
141,113
|
|
|
147,664
|
|
|
105
|
|
|
552,968
|
|
|
425,572
|
|
|
127,396
|
|
|
30
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
99,534
|
|
|
29,280
|
|
|
(70,254)
|
|
|
NM
|
|
|
181,767
|
|
|
123,943
|
|
|
(57,824)
|
|
|
(47)
|
|
Cost of product
sales
|
37,834
|
|
|
18,225
|
|
|
(19,609)
|
|
|
(108)
|
|
|
72,590
|
|
|
60,159
|
|
|
(12,431)
|
|
|
(21)
|
|
Selling, general and
administrative
|
80,822
|
|
|
73,049
|
|
|
(7,773)
|
|
|
(11)
|
|
|
157,834
|
|
|
160,632
|
|
|
2,798
|
|
|
2
|
|
Fees to Manager -
related party
|
7,551
|
|
|
3,824
|
|
|
(3,727)
|
|
|
(97)
|
|
|
13,103
|
|
|
11,180
|
|
|
(1,923)
|
|
|
(17)
|
|
Depreciation and
amortization
|
27,916
|
|
|
29,018
|
|
|
1,102
|
|
|
4
|
|
|
55,435
|
|
|
59,549
|
|
|
4,114
|
|
|
7
|
|
Total operating
expenses
|
253,657
|
|
|
153,396
|
|
|
(100,261)
|
|
|
(65)
|
|
|
480,729
|
|
|
415,463
|
|
|
(65,266)
|
|
|
(16)
|
|
Operating income
(loss)
|
35,120
|
|
|
(12,283)
|
|
|
47,403
|
|
|
NM
|
|
|
72,239
|
|
|
10,109
|
|
|
62,130
|
|
|
NM
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
41
|
|
|
189
|
|
|
(148)
|
|
|
(78)
|
|
|
202
|
|
|
657
|
|
|
(455)
|
|
|
(69)
|
|
Interest
expense(1)
|
(16,773)
|
|
|
(23,639)
|
|
|
6,866
|
|
|
29
|
|
|
(35,392)
|
|
|
(50,344)
|
|
|
14,952
|
|
|
30
|
|
Other income
(expense), net
|
793
|
|
|
46
|
|
|
747
|
|
|
NM
|
|
|
1,295
|
|
|
(100)
|
|
|
1,395
|
|
|
NM
|
|
Net income (loss)
from continuing operations before income taxes
|
19,181
|
|
|
(35,687)
|
|
|
54,868
|
|
|
154
|
|
|
38,344
|
|
|
(39,678)
|
|
|
78,022
|
|
|
197
|
|
(Provision) benefit
for income taxes
|
(12,248)
|
|
|
11,258
|
|
|
(23,506)
|
|
|
NM
|
|
|
(17,614)
|
|
|
8,261
|
|
|
(25,875)
|
|
|
NM
|
|
Net income (loss)
from continuing operations
|
6,933
|
|
|
(24,429)
|
|
|
31,362
|
|
|
128
|
|
|
20,730
|
|
|
(31,417)
|
|
|
52,147
|
|
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
discontinued operations before income taxes
|
—
|
|
|
22,371
|
|
|
(22,371)
|
|
|
(100)
|
|
|
—
|
|
|
46,916
|
|
|
(46,916)
|
|
|
(100)
|
|
Provision for income
taxes
|
—
|
|
|
(5,240)
|
|
|
5,240
|
|
|
100
|
|
|
—
|
|
|
(11,570)
|
|
|
11,570
|
|
|
100
|
|
Net income from
discontinued operations
|
—
|
|
|
17,131
|
|
|
(17,131)
|
|
|
(100)
|
|
|
—
|
|
|
35,346
|
|
|
(35,346)
|
|
|
(100)
|
|
Net income
(loss)
|
6,933
|
|
|
(7,298)
|
|
|
14,231
|
|
|
195
|
|
|
20,730
|
|
|
3,929
|
|
|
16,801
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
6,933
|
|
|
(24,429)
|
|
|
31,362
|
|
|
128
|
|
|
20,730
|
|
|
(31,417)
|
|
|
52,147
|
|
|
166
|
|
Less: net (loss)
income attributable to noncontrolling interests
|
(416)
|
|
|
656
|
|
|
1,072
|
|
|
163
|
|
|
181
|
|
|
581
|
|
|
400
|
|
|
69
|
|
Net income (loss)
from continuing operations attributable to MIC
|
7,349
|
|
|
(25,085)
|
|
|
32,434
|
|
|
129
|
|
|
20,549
|
|
|
(31,998)
|
|
|
52,547
|
|
|
164
|
|
Net income from
discontinued operations
|
—
|
|
|
17,131
|
|
|
(17,131)
|
|
|
(100)
|
|
|
—
|
|
|
35,346
|
|
|
(35,346)
|
|
|
(100)
|
|
Net income from
discontinued operations attributable to MIC
|
—
|
|
|
17,131
|
|
|
(17,131)
|
|
|
(100)
|
|
|
—
|
|
|
35,346
|
|
|
(35,346)
|
|
|
(100)
|
|
Net income (loss)
attributable to MIC
|
$
|
7,349
|
|
|
$
|
(7,954)
|
|
|
15,303
|
|
|
192
|
|
|
$
|
20,549
|
|
|
$
|
3,348
|
|
|
17,201
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per share from continuing operations attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.29)
|
|
|
0.37
|
|
|
128
|
|
|
$
|
0.23
|
|
|
$
|
(0.37)
|
|
|
0.60
|
|
|
162
|
|
Basic income per
share from discontinued operations attributable to MIC
|
—
|
|
|
0.20
|
|
|
(0.20)
|
|
|
(100)
|
|
|
—
|
|
|
0.41
|
|
|
(0.41)
|
|
|
(100)
|
|
Basic income (loss)
per share attributable to MIC
|
$
|
0.08
|
|
|
$
|
(0.09)
|
|
|
0.17
|
|
|
189
|
|
|
$
|
0.23
|
|
|
$
|
0.04
|
|
|
0.19
|
|
|
NM
|
|
Weighted average
number of shares outstanding: basic
|
87,628,429
|
|
|
86,871,892
|
|
|
756,537
|
|
|
1
|
|
|
87,520,541
|
|
|
86,779,432
|
|
|
741,109
|
|
|
1
|
|
___________________
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense
includes non-cash losses on derivative instruments of $78,000 and
non-cash gains of $203,000 for the quarter and six months ended
June 30, 2021, respectively, compared with non-cash losses of
$172,000 and $4.4 million for the quarter and six months ended June
30, 2020, respectively.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION OF
CONSOLIDATED NET INCOME (LOSS) TO EBITDA EXCLUDING
|
NON-CASH ITEMS AND
A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
|
Quarter
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Net income (loss)
from continuing operations
|
$
|
6,933
|
|
|
$
|
(24,429)
|
|
|
|
|
|
|
$
|
20,730
|
|
|
$
|
(31,417)
|
|
|
|
|
|
Interest expense,
net(1)
|
16,732
|
|
|
23,450
|
|
|
|
|
|
|
35,190
|
|
|
49,687
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
12,248
|
|
|
(11,258)
|
|
|
|
|
|
|
17,614
|
|
|
(8,261)
|
|
|
|
|
|
Depreciation and
amortization
|
27,916
|
|
|
29,018
|
|
|
|
|
|
|
55,435
|
|
|
59,549
|
|
|
|
|
|
Fees to Manager -
related party
|
7,551
|
|
|
3,824
|
|
|
|
|
|
|
13,103
|
|
|
11,180
|
|
|
|
|
|
Other non-cash
(income) expense, net(2)
|
(102)
|
|
|
(3,727)
|
|
|
|
|
|
|
1,856
|
|
|
604
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
71,278
|
|
|
$
|
16,878
|
|
|
54,400
|
|
|
NM
|
|
$
|
143,928
|
|
|
$
|
81,342
|
|
|
62,586
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
71,278
|
|
|
$
|
16,878
|
|
|
|
|
|
|
$
|
143,928
|
|
|
$
|
81,342
|
|
|
|
|
|
Interest expense,
net(1)
|
(16,732)
|
|
|
(23,450)
|
|
|
|
|
|
|
(35,190)
|
|
|
(49,687)
|
|
|
|
|
|
Non-cash interest
expense, net(1)
|
1,345
|
|
|
4,186
|
|
|
|
|
|
|
6,748
|
|
|
11,853
|
|
|
|
|
|
(Provision) benefit
for current income taxes
|
(4,730)
|
|
|
5,638
|
|
|
|
|
|
|
(7,939)
|
|
|
818
|
|
|
|
|
|
Changes in working
capital
|
(130,700)
|
|
|
14,527
|
|
|
|
|
|
|
(147,093)
|
|
|
24,993
|
|
|
|
|
|
Cash (used in)
provided by operating activities - continuing operations
|
(79,539)
|
|
|
17,779
|
|
|
|
|
|
|
(39,546)
|
|
|
69,319
|
|
|
|
|
|
Changes in working
capital
|
130,700
|
|
|
(14,527)
|
|
|
|
|
|
|
147,093
|
|
|
(24,993)
|
|
|
|
|
|
Maintenance capital
expenditures
|
(6,140)
|
|
|
(3,738)
|
|
|
|
|
|
|
(9,804)
|
|
|
(9,452)
|
|
|
|
|
|
Free cash flow -
continuing operations
|
$
|
45,021
|
|
|
$
|
(486)
|
|
|
45,507
|
|
|
NM
|
|
$
|
97,743
|
|
|
$
|
34,874
|
|
|
62,869
|
|
|
180
|
|
__________________
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense,
net, includes non-cash adjustments to derivative instruments,
non-cash amortization of debt financing fees, and non-cash
amortization of debt discount related to our 2.00% Convertible
Senior Notes. For the quarter and six months ended June 30, 2021,
interest expense also includes non-cash write-offs of debt
financing costs related to the repurchase of our 2.00% Convertible
Senior Notes, the cancellation of the holding company revolving
credit facility in January 2021, and the full repayment of the
Hawaii Gas $100.0 million senior secured notes. In connection with
the repayment of the Hawaii Gas $100.0 million senior secured
notes, the Company paid a $4.7 million 'make-whole'
payment.
|
|
|
(2)
|
Other non-cash
(income) expense, net, includes primarily non-cash mark-to-market
adjustment of the value of the commodity hedge contracts, non-cash
compensation expense incurred in relation to the incentive plans
for senior management of our operating businesses, and non-cash
gains (losses) related to the write-off or disposal of assets or
liabilities. Other non-cash (income) expense, net, excludes the
adjustment to bad debt expense related to the specific reserve
component, net of recoveries, for which this adjustment is reported
in working capital in the above table. See "Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA) excluding
non-cash items and Free Cash Flow" above for further
discussion.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION OF
SEGMENT NET INCOME (LOSS) TO EBITDA
|
EXCLUDING NON-CASH
ITEMS AND A RECONCILIATION FROM CASH PROVIDED
|
BY (USED IN)
OPERATING ACTIVITIES TO FREE CASH FLOW
|
Atlantic
Aviation
|
|
Quarter
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Service
revenue
|
230,037
|
|
|
104,318
|
|
|
125,719
|
|
|
121
|
|
|
439,641
|
|
|
328,315
|
|
|
111,326
|
|
|
34
|
|
Cost of services
(exclusive of depreciation and amortization shown separately below)
|
99,534
|
|
|
29,280
|
|
|
(70,254)
|
|
|
NM
|
|
|
181,767
|
|
|
123,943
|
|
|
(57,824)
|
|
|
(47)
|
|
Gross
margin
|
130,503
|
|
|
75,038
|
|
|
55,465
|
|
|
74
|
|
|
257,874
|
|
|
204,372
|
|
|
53,502
|
|
|
26
|
|
Selling, general and
administrative expenses
|
62,512
|
|
|
58,860
|
|
|
(3,652)
|
|
|
(6)
|
|
|
124,098
|
|
|
123,000
|
|
|
(1,098)
|
|
|
(1)
|
|
Depreciation and
amortization
|
23,589
|
|
|
24,865
|
|
|
1,276
|
|
|
5
|
|
|
46,889
|
|
|
51,444
|
|
|
4,555
|
|
|
9
|
|
Operating income
(loss)
|
44,402
|
|
|
(8,687)
|
|
|
53,089
|
|
|
NM
|
|
|
86,887
|
|
|
29,928
|
|
|
56,959
|
|
|
190
|
|
Interest expense,
net(1)
|
(10,764)
|
|
|
(14,129)
|
|
|
3,365
|
|
|
24
|
|
|
(21,494)
|
|
|
(33,005)
|
|
|
11,511
|
|
|
35
|
|
Other income
(expense), net
|
2
|
|
|
(133)
|
|
|
135
|
|
|
102
|
|
|
(16)
|
|
|
(205)
|
|
|
189
|
|
|
92
|
|
(Provision) benefit
for income taxes
|
(9,015)
|
|
|
6,401
|
|
|
(15,416)
|
|
|
NM
|
|
|
(17,611)
|
|
|
922
|
|
|
(18,533)
|
|
|
NM
|
|
Net income
(loss)
|
24,625
|
|
|
(16,548)
|
|
|
41,173
|
|
|
NM
|
|
|
47,766
|
|
|
(2,360)
|
|
|
50,126
|
|
|
NM
|
|
Reconciliation
of net income (loss) to EBITDA excluding non-cash items and a
reconciliation of cash provided by operating activities to Free
Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
24,625
|
|
|
(16,548)
|
|
|
|
|
|
|
47,766
|
|
|
(2,360)
|
|
|
|
|
|
Interest expense,
net(1)
|
10,764
|
|
|
14,129
|
|
|
|
|
|
|
21,494
|
|
|
33,005
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
9,015
|
|
|
(6,401)
|
|
|
|
|
|
|
17,611
|
|
|
(922)
|
|
|
|
|
|
Depreciation and
amortization
|
23,589
|
|
|
24,865
|
|
|
|
|
|
|
46,889
|
|
|
51,444
|
|
|
|
|
|
Other non-cash
expense, net(2)
|
2,326
|
|
|
849
|
|
|
|
|
|
|
3,895
|
|
|
1,662
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
70,319
|
|
|
16,894
|
|
|
53,425
|
|
|
NM
|
|
|
137,655
|
|
|
82,829
|
|
|
54,826
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
70,319
|
|
|
16,894
|
|
|
|
|
|
|
137,655
|
|
|
82,829
|
|
|
|
|
|
Interest expense,
net(1)
|
(10,764)
|
|
|
(14,129)
|
|
|
|
|
|
|
(21,494)
|
|
|
(33,005)
|
|
|
|
|
|
Non-cash interest
expense, net(1)
|
938
|
|
|
2,486
|
|
|
|
|
|
|
1,881
|
|
|
7,645
|
|
|
|
|
|
(Provision) benefit
for current income taxes
|
(6,490)
|
|
|
8,497
|
|
|
|
|
|
|
(10,970)
|
|
|
(80)
|
|
|
|
|
|
Changes in working
capital
|
6,961
|
|
|
8,050
|
|
|
|
|
|
|
8,877
|
|
|
23,717
|
|
|
|
|
|
Cash provided by
operating activities
|
60,964
|
|
|
21,798
|
|
|
|
|
|
|
115,949
|
|
|
81,106
|
|
|
|
|
|
Changes in working
capital
|
(6,961)
|
|
|
(8,050)
|
|
|
|
|
|
|
(8,877)
|
|
|
(23,717)
|
|
|
|
|
|
Maintenance capital
expenditures
|
(4,494)
|
|
|
(2,361)
|
|
|
|
|
|
|
(7,044)
|
|
|
(5,406)
|
|
|
|
|
|
Free cash
flow
|
49,509
|
|
|
11,387
|
|
|
38,122
|
|
|
NM
|
|
|
100,028
|
|
|
51,983
|
|
|
48,045
|
|
|
92
|
|
____________________
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense,
net, includes non-cash adjustments to derivative instruments and
non-cash amortization of debt financing fees.
|
|
|
(2)
|
Other non-cash
expense, net, includes primarily non-cash compensation expense
incurred in relation to incentive plans and non-cash gains (losses)
related to the write-off or disposal of assets or liabilities.
Other non-cash expense, net, excludes the adjustment to bad debt
expense related to the specific reserve component, net of
recoveries, for which this adjustment is reported in working
capital in the above table. See "Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA) excluding non-cash
items and Free Cash Flow" above for further
discussion.
|
MIC
Hawaii
|
|
|
Quarter
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Product
revenue
|
58,740
|
|
|
36,795
|
|
|
21,945
|
|
|
60
|
|
|
113,327
|
|
|
97,257
|
|
|
16,070
|
|
|
17
|
|
Cost of product sales
(exclusive of depreciation and amortization shown separately
below)
|
37,834
|
|
|
18,225
|
|
|
(19,609)
|
|
|
(108)
|
|
|
72,590
|
|
|
60,159
|
|
|
(12,431)
|
|
|
(21)
|
|
Gross
margin
|
20,906
|
|
|
18,570
|
|
|
2,336
|
|
|
13
|
|
|
40,737
|
|
|
37,098
|
|
|
3,639
|
|
|
10
|
|
Selling, general and
administrative expenses
|
6,929
|
|
|
6,438
|
|
|
(491)
|
|
|
(8)
|
|
|
12,606
|
|
|
12,760
|
|
|
154
|
|
|
1
|
|
Depreciation and
amortization
|
3,840
|
|
|
3,778
|
|
|
(62)
|
|
|
(2)
|
|
|
7,588
|
|
|
7,402
|
|
|
(186)
|
|
|
(3)
|
|
Operating
income
|
10,137
|
|
|
8,354
|
|
|
1,783
|
|
|
21
|
|
|
20,543
|
|
|
16,936
|
|
|
3,607
|
|
|
21
|
|
Interest expense,
net(1)
|
(5,664)
|
|
|
(1,780)
|
|
|
(3,884)
|
|
|
NM
|
|
|
(6,968)
|
|
|
(4,555)
|
|
|
(2,413)
|
|
|
(53)
|
|
Other expense,
net
|
(82)
|
|
|
(56)
|
|
|
(26)
|
|
|
(46)
|
|
|
(418)
|
|
|
(168)
|
|
|
(250)
|
|
|
(149)
|
|
Provision for income
taxes
|
(1,318)
|
|
|
(1,772)
|
|
|
454
|
|
|
26
|
|
|
(3,685)
|
|
|
(3,547)
|
|
|
(138)
|
|
|
(4)
|
|
Net income
|
3,073
|
|
|
4,746
|
|
|
(1,673)
|
|
|
(35)
|
|
|
9,472
|
|
|
8,666
|
|
|
806
|
|
|
9
|
|
Less: net (loss)
income attributable to noncontrolling interests
|
(416)
|
|
|
656
|
|
|
1,072
|
|
|
163
|
|
|
181
|
|
|
581
|
|
|
400
|
|
|
69
|
|
Net income
attributable to MIC
|
3,489
|
|
|
4,090
|
|
|
(601)
|
|
|
(15)
|
|
|
9,291
|
|
|
8,085
|
|
|
1,206
|
|
|
15
|
|
Reconciliation
of net income to EBITDA excluding non-cash items and a
reconciliation of cash (used in) provided by operating activities
to Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
3,073
|
|
|
4,746
|
|
|
|
|
|
|
9,472
|
|
|
8,666
|
|
|
|
|
|
Interest expense,
net(1)
|
5,664
|
|
|
1,780
|
|
|
|
|
|
|
6,968
|
|
|
4,555
|
|
|
|
|
|
Provision for income
taxes
|
1,318
|
|
|
1,772
|
|
|
|
|
|
|
3,685
|
|
|
3,547
|
|
|
|
|
|
Depreciation and
amortization
|
3,840
|
|
|
3,778
|
|
|
|
|
|
|
7,588
|
|
|
7,402
|
|
|
|
|
|
Other non-cash
income, net(2)
|
(2,836)
|
|
|
(4,841)
|
|
|
|
|
|
|
(3,092)
|
|
|
(1,728)
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
11,059
|
|
|
7,235
|
|
|
3,824
|
|
|
53
|
|
|
24,621
|
|
|
22,442
|
|
|
2,179
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
11,059
|
|
|
7,235
|
|
|
|
|
|
|
24,621
|
|
|
22,442
|
|
|
|
|
|
Interest expense,
net(1)
|
(5,664)
|
|
|
(1,780)
|
|
|
|
|
|
|
(6,968)
|
|
|
(4,555)
|
|
|
|
|
|
Non-cash interest
expense, net(1)
|
274
|
|
|
188
|
|
|
|
|
|
|
43
|
|
|
1,191
|
|
|
|
|
|
Provision for current
income taxes
|
(669)
|
|
|
(791)
|
|
|
|
|
|
|
(2,185)
|
|
|
(2,914)
|
|
|
|
|
|
Changes in working
capital
|
(5,760)
|
|
|
8,692
|
|
|
|
|
|
|
(7,456)
|
|
|
3,606
|
|
|
|
|
|
Cash (used in)
provided by operating activities
|
(760)
|
|
|
13,544
|
|
|
|
|
|
|
8,055
|
|
|
19,770
|
|
|
|
|
|
Changes in working
capital
|
5,760
|
|
|
(8,692)
|
|
|
|
|
|
|
7,456
|
|
|
(3,606)
|
|
|
|
|
|
Maintenance capital
expenditures
|
(1,646)
|
|
|
(1,377)
|
|
|
|
|
|
|
(2,760)
|
|
|
(4,046)
|
|
|
|
|
|
Free cash
flow
|
3,354
|
|
|
3,475
|
|
|
(121)
|
|
|
(3)
|
|
|
12,751
|
|
|
12,118
|
|
|
633
|
|
|
5
|
|
____________________
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense,
net, includes non-cash adjustments to derivative instruments,
non-cash amortization of debt financing fees, and non-cash
write-offs of debt financing costs related to the full repayment of
the Hawaii Gas $100.0 million senior secured notes. In connection
with the repayment of the Hawaii Gas $100.0 million senior secured
notes, Hawaii Gas paid a $4.7 million 'make-whole'
payment.
|
|
|
(2)
|
Other non-cash
income, net, includes primarily non-cash mark-to-market adjustment
of the value of the commodity hedge contracts, non-cash
compensation expense incurred in relation to incentive plans, and
non-cash gains (losses) related to the write-off or disposal of
assets or liabilities. Other non-cash income, net, excludes the
adjustment to bad debt expense related to the specific reserve
component, net of recoveries, for which this adjustment is reported
in working capital in the above table. See "Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA) excluding
non-cash items and Free Cash Flow" above for further
discussion.
|
Corporate and
Other
|
|
|
Quarter
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Six Months
Ended
June
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Selling, general and
administrative expenses
|
11,381
|
|
|
7,751
|
|
|
(3,630)
|
|
|
(47)
|
|
|
21,130
|
|
|
24,872
|
|
|
3,742
|
|
|
15
|
|
Fees to Manager -
related party
|
7,551
|
|
|
3,824
|
|
|
(3,727)
|
|
|
(97)
|
|
|
13,103
|
|
|
11,180
|
|
|
(1,923)
|
|
|
(17)
|
|
Depreciation and
amortization
|
487
|
|
|
375
|
|
|
(112)
|
|
|
(30)
|
|
|
958
|
|
|
703
|
|
|
(255)
|
|
|
(36)
|
|
Operating
loss
|
(19,419)
|
|
|
(11,950)
|
|
|
(7,469)
|
|
|
(63)
|
|
|
(35,191)
|
|
|
(36,755)
|
|
|
1,564
|
|
|
4
|
|
Interest expense,
net(1)
|
(304)
|
|
|
(7,541)
|
|
|
7,237
|
|
|
96
|
|
|
(6,728)
|
|
|
(12,127)
|
|
|
5,399
|
|
|
45
|
|
Other income,
net
|
873
|
|
|
235
|
|
|
638
|
|
|
NM
|
|
|
1,729
|
|
|
273
|
|
|
1,456
|
|
|
NM
|
|
(Provision) benefit
for income taxes
|
(1,915)
|
|
|
6,629
|
|
|
(8,544)
|
|
|
(129)
|
|
|
3,682
|
|
|
10,886
|
|
|
(7,204)
|
|
|
(66)
|
|
Net loss
|
(20,765)
|
|
|
(12,627)
|
|
|
(8,138)
|
|
|
(64)
|
|
|
(36,508)
|
|
|
(37,723)
|
|
|
1,215
|
|
|
3
|
|
Reconciliation
of net loss to EBITDA excluding non-cash items and a
reconciliation of cash used in operating activities to Free
Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(20,765)
|
|
|
(12,627)
|
|
|
|
|
|
|
(36,508)
|
|
|
(37,723)
|
|
|
|
|
|
Interest expense,
net(1)
|
304
|
|
|
7,541
|
|
|
|
|
|
|
6,728
|
|
|
12,127
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
1,915
|
|
|
(6,629)
|
|
|
|
|
|
|
(3,682)
|
|
|
(10,886)
|
|
|
|
|
|
Fees to Manager -
related party
|
7,551
|
|
|
3,824
|
|
|
|
|
|
|
13,103
|
|
|
11,180
|
|
|
|
|
|
Depreciation and
amortization
|
487
|
|
|
375
|
|
|
|
|
|
|
958
|
|
|
703
|
|
|
|
|
|
Other non-cash
expense, net(2)
|
408
|
|
|
265
|
|
|
|
|
|
|
1,053
|
|
|
670
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
(10,100)
|
|
|
(7,251)
|
|
|
(2,849)
|
|
|
(39)
|
|
|
(18,348)
|
|
|
(23,929)
|
|
|
5,581
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
(10,100)
|
|
|
(7,251)
|
|
|
|
|
|
|
(18,348)
|
|
|
(23,929)
|
|
|
|
|
|
Interest expense,
net(1)
|
(304)
|
|
|
(7,541)
|
|
|
|
|
|
|
(6,728)
|
|
|
(12,127)
|
|
|
|
|
|
Non-cash interest
expense, net(1)
|
133
|
|
|
1,512
|
|
|
|
|
|
|
4,824
|
|
|
3,017
|
|
|
|
|
|
Benefit (provision)
for current income taxes
|
2,429
|
|
|
(2,068)
|
|
|
|
|
|
|
5,216
|
|
|
3,812
|
|
|
|
|
|
Changes in working
capital
|
(131,901)
|
|
|
(2,215)
|
|
|
|
|
|
|
(148,514)
|
|
|
(2,330)
|
|
|
|
|
|
Cash used in
operating activities
|
(139,743)
|
|
|
(17,563)
|
|
|
|
|
|
|
(163,550)
|
|
|
(31,557)
|
|
|
|
|
|
Changes in working
capital
|
131,901
|
|
|
2,215
|
|
|
|
|
|
|
148,514
|
|
|
2,330
|
|
|
|
|
|
Free cash
flow
|
(7,842)
|
|
|
(15,348)
|
|
|
7,506
|
|
|
49
|
|
|
(15,036)
|
|
|
(29,227)
|
|
|
14,191
|
|
|
49
|
|
____________________
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense,
net, includes, non-cash amortization of debt financing fees and
non-cash amortization of debt discount related to our 2.00%
Convertible Senior Notes. For the quarter and six months ended June
30, 2021, interest expense also includes non-cash write-offs of
debt financing costs related to the repurchase of our 2.00%
Convertible Senior Notes and the cancellation of the holding
company revolving credit facility in January 2021.
|
|
|
(2)
|
Other non-cash
expense, net, includes primarily non-cash adjustments related to
non-cash compensation expense incurred in relation to incentive
plans and non-cash gains (losses) related to the write-off or
disposal of assets or liabilities. See "Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA) excluding
non-cash items and Free Cash Flow" above for further
discussion.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA EXCLUDING
|
NON-CASH ITEMS AND
A RECONCILIATION FROM CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
|
|
For the Quarter
Ended June 30, 2021
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate
and
Other
|
|
Total
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
($ in Thousands)
(Unaudited)
|
Net income
(loss)
|
24,625
|
|
|
3,073
|
|
|
(20,765)
|
|
|
6,933
|
|
|
—
|
|
|
6,933
|
|
Interest expense,
net(1)
|
10,764
|
|
|
5,664
|
|
|
304
|
|
|
16,732
|
|
|
—
|
|
|
16,732
|
|
Provision for income
taxes
|
9,015
|
|
|
1,318
|
|
|
1,915
|
|
|
12,248
|
|
|
—
|
|
|
12,248
|
|
Depreciation and
amortization
|
23,589
|
|
|
3,840
|
|
|
487
|
|
|
27,916
|
|
|
—
|
|
|
27,916
|
|
Fees to Manager -
related party
|
—
|
|
|
—
|
|
|
7,551
|
|
|
7,551
|
|
|
—
|
|
|
7,551
|
|
Other non-cash
expense (income), net(2)
|
2,326
|
|
|
(2,836)
|
|
|
408
|
|
|
(102)
|
|
|
—
|
|
|
(102)
|
|
EBITDA excluding
non-cash items
|
70,319
|
|
|
11,059
|
|
|
(10,100)
|
|
|
71,278
|
|
|
—
|
|
|
71,278
|
|
EBITDA excluding
non-cash items
|
70,319
|
|
|
11,059
|
|
|
(10,100)
|
|
|
71,278
|
|
|
—
|
|
|
71,278
|
|
Interest expense,
net(1)
|
(10,764)
|
|
|
(5,664)
|
|
|
(304)
|
|
|
(16,732)
|
|
|
—
|
|
|
(16,732)
|
|
Non-cash interest
expense, net(1)
|
938
|
|
|
274
|
|
|
133
|
|
|
1,345
|
|
|
—
|
|
|
1,345
|
|
(Provision) benefit
for current income taxes
|
(6,490)
|
|
|
(669)
|
|
|
2,429
|
|
|
(4,730)
|
|
|
—
|
|
|
(4,730)
|
|
Changes in working
capital
|
6,961
|
|
|
(5,760)
|
|
|
(131,901)
|
|
|
(130,700)
|
|
|
—
|
|
|
(130,700)
|
|
Cash provided by
(used in) operating activities
|
60,964
|
|
|
(760)
|
|
|
(139,743)
|
|
|
(79,539)
|
|
|
—
|
|
|
(79,539)
|
|
Changes in working
capital
|
(6,961)
|
|
|
5,760
|
|
|
131,901
|
|
|
130,700
|
|
|
—
|
|
|
130,700
|
|
Maintenance capital
expenditures
|
(4,494)
|
|
|
(1,646)
|
|
|
—
|
|
|
(6,140)
|
|
|
—
|
|
|
(6,140)
|
|
Free Cash
Flow
|
49,509
|
|
|
3,354
|
|
|
(7,842)
|
|
|
45,021
|
|
|
—
|
|
|
45,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended June 30, 2020
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate
and
Other
|
|
Total
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
($ in Thousands)
(Unaudited)
|
Net (loss)
income
|
(16,548)
|
|
|
4,746
|
|
|
(12,627)
|
|
|
(24,429)
|
|
|
17,131
|
|
|
(7,298)
|
|
Interest expense,
net(1)
|
14,129
|
|
|
1,780
|
|
|
7,541
|
|
|
23,450
|
|
|
9,941
|
|
|
33,391
|
|
(Benefit) provision
for income taxes
|
(6,401)
|
|
|
1,772
|
|
|
(6,629)
|
|
|
(11,258)
|
|
|
5,240
|
|
|
(6,018)
|
|
Depreciation and
amortization
|
24,865
|
|
|
3,778
|
|
|
375
|
|
|
29,018
|
|
|
33,750
|
|
|
62,768
|
|
Fees to Manager -
related party
|
—
|
|
|
—
|
|
|
3,824
|
|
|
3,824
|
|
|
—
|
|
|
3,824
|
|
Other non-cash
expense (income), net(2)
|
849
|
|
|
(4,841)
|
|
|
265
|
|
|
(3,727)
|
|
|
1,627
|
|
|
(2,100)
|
|
EBITDA excluding
non-cash items
|
16,894
|
|
|
7,235
|
|
|
(7,251)
|
|
|
16,878
|
|
|
67,689
|
|
|
84,567
|
|
EBITDA excluding
non-cash items
|
16,894
|
|
|
7,235
|
|
|
(7,251)
|
|
|
16,878
|
|
|
67,689
|
|
|
84,567
|
|
Interest expense,
net(1)
|
(14,129)
|
|
|
(1,780)
|
|
|
(7,541)
|
|
|
(23,450)
|
|
|
(9,941)
|
|
|
(33,391)
|
|
Non-cash interest
expense, net(1)
|
2,486
|
|
|
188
|
|
|
1,512
|
|
|
4,186
|
|
|
(118)
|
|
|
4,068
|
|
Benefit (provision)
for current income taxes
|
8,497
|
|
|
(791)
|
|
|
(2,068)
|
|
|
5,638
|
|
|
(847)
|
|
|
4,791
|
|
Changes in working
capital
|
8,050
|
|
|
8,692
|
|
|
(2,215)
|
|
|
14,527
|
|
|
(2,195)
|
|
|
12,332
|
|
Cash provided by
(used in) operating activities
|
21,798
|
|
|
13,544
|
|
|
(17,563)
|
|
|
17,779
|
|
|
54,588
|
|
|
72,367
|
|
Changes in working
capital
|
(8,050)
|
|
|
(8,692)
|
|
|
2,215
|
|
|
(14,527)
|
|
|
2,195
|
|
|
(12,332)
|
|
Maintenance capital
expenditures
|
(2,361)
|
|
|
(1,377)
|
|
|
—
|
|
|
(3,738)
|
|
|
(12,872)
|
|
|
(16,610)
|
|
Free Cash
Flow
|
11,387
|
|
|
3,475
|
|
|
(15,348)
|
|
|
(486)
|
|
|
43,911
|
|
|
43,425
|
|
|
|
For the Six Months
Ended June 30, 2021
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate
and
Other
|
|
Total
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
($ in Thousands)
(Unaudited)
|
Net income
(loss)
|
47,766
|
|
|
9,472
|
|
|
(36,508)
|
|
|
20,730
|
|
|
—
|
|
|
20,730
|
|
Interest expense,
net(1)
|
21,494
|
|
|
6,968
|
|
|
6,728
|
|
|
35,190
|
|
|
—
|
|
|
35,190
|
|
Provision (benefit)
for income taxes
|
17,611
|
|
|
3,685
|
|
|
(3,682)
|
|
|
17,614
|
|
|
—
|
|
|
17,614
|
|
Depreciation and
amortization
|
46,889
|
|
|
7,588
|
|
|
958
|
|
|
55,435
|
|
|
—
|
|
|
55,435
|
|
Fees to Manager -
related party
|
—
|
|
|
—
|
|
|
13,103
|
|
|
13,103
|
|
|
—
|
|
|
13,103
|
|
Other non-cash
expense (income), net(2)
|
3,895
|
|
|
(3,092)
|
|
|
1,053
|
|
|
1,856
|
|
|
—
|
|
|
1,856
|
|
EBITDA excluding
non-cash items
|
137,655
|
|
|
24,621
|
|
|
(18,348)
|
|
|
143,928
|
|
|
—
|
|
|
143,928
|
|
EBITDA excluding
non-cash items
|
137,655
|
|
|
24,621
|
|
|
(18,348)
|
|
|
143,928
|
|
|
—
|
|
|
143,928
|
|
Interest expense,
net(1)
|
(21,494)
|
|
|
(6,968)
|
|
|
(6,728)
|
|
|
(35,190)
|
|
|
—
|
|
|
(35,190)
|
|
Non-cash interest
expense, net(1)
|
1,881
|
|
|
43
|
|
|
4,824
|
|
|
6,748
|
|
|
—
|
|
|
6,748
|
|
(Provision) benefit
for current income taxes
|
(10,970)
|
|
|
(2,185)
|
|
|
5,216
|
|
|
(7,939)
|
|
|
—
|
|
|
(7,939)
|
|
Changes in working
capital
|
8,877
|
|
|
(7,456)
|
|
|
(148,514)
|
|
|
(147,093)
|
|
|
—
|
|
|
(147,093)
|
|
Cash provided by
(used in) operating activities
|
115,949
|
|
|
8,055
|
|
|
(163,550)
|
|
|
(39,546)
|
|
|
—
|
|
|
(39,546)
|
|
Changes in working
capital
|
(8,877)
|
|
|
7,456
|
|
|
148,514
|
|
|
147,093
|
|
|
—
|
|
|
147,093
|
|
Maintenance capital
expenditures
|
(7,044)
|
|
|
(2,760)
|
|
|
—
|
|
|
(9,804)
|
|
|
—
|
|
|
(9,804)
|
|
Free Cash
Flow
|
100,028
|
|
|
12,751
|
|
|
(15,036)
|
|
|
97,743
|
|
|
—
|
|
|
97,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2020
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate
and
Other
|
|
Total
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
|
|
($ in Thousands)
(Unaudited)
|
Net (loss)
income
|
(2,360)
|
|
|
8,666
|
|
|
(37,723)
|
|
|
(31,417)
|
|
|
35,346
|
|
|
3,929
|
|
Interest expense,
net(1)
|
33,005
|
|
|
4,555
|
|
|
12,127
|
|
|
49,687
|
|
|
25,240
|
|
|
74,927
|
|
(Benefit) provision
for income taxes
|
(922)
|
|
|
3,547
|
|
|
(10,886)
|
|
|
(8,261)
|
|
|
11,570
|
|
|
3,309
|
|
Depreciation and
amortization
|
51,444
|
|
|
7,402
|
|
|
703
|
|
|
59,549
|
|
|
68,230
|
|
|
127,779
|
|
Fees to Manager -
related party
|
—
|
|
|
—
|
|
|
11,180
|
|
|
11,180
|
|
|
—
|
|
|
11,180
|
|
Other non-cash
expense (income), net(2)
|
1,662
|
|
|
(1,728)
|
|
|
670
|
|
|
604
|
|
|
4,950
|
|
|
5,554
|
|
EBITDA excluding
non-cash items
|
82,829
|
|
|
22,442
|
|
|
(23,929)
|
|
|
81,342
|
|
|
145,336
|
|
|
226,678
|
|
EBITDA excluding
non-cash items
|
82,829
|
|
|
22,442
|
|
|
(23,929)
|
|
|
81,342
|
|
|
145,336
|
|
|
226,678
|
|
Interest expense,
net(1)
|
(33,005)
|
|
|
(4,555)
|
|
|
(12,127)
|
|
|
(49,687)
|
|
|
(25,240)
|
|
|
(74,927)
|
|
Non-cash interest
expense, net(1)
|
7,645
|
|
|
1,191
|
|
|
3,017
|
|
|
11,853
|
|
|
5,412
|
|
|
17,265
|
|
(Provision) benefit
for current income taxes
|
(80)
|
|
|
(2,914)
|
|
|
3,812
|
|
|
818
|
|
|
(2,954)
|
|
|
(2,136)
|
|
Changes in working
capital
|
23,717
|
|
|
3,606
|
|
|
(2,330)
|
|
|
24,993
|
|
|
(19,278)
|
|
|
5,715
|
|
Cash provided by
(used in) operating activities
|
81,106
|
|
|
19,770
|
|
|
(31,557)
|
|
|
69,319
|
|
|
103,276
|
|
|
172,595
|
|
Changes in working
capital
|
(23,717)
|
|
|
(3,606)
|
|
|
2,330
|
|
|
(24,993)
|
|
|
19,278
|
|
|
(5,715)
|
|
Maintenance capital
expenditures
|
(5,406)
|
|
|
(4,046)
|
|
|
—
|
|
|
(9,452)
|
|
|
(18,487)
|
|
|
(27,939)
|
|
Free Cash
Flow
|
51,983
|
|
|
12,118
|
|
|
(29,227)
|
|
|
34,874
|
|
|
104,067
|
|
|
138,941
|
|
____________________________
|
(1)
|
Interest expense,
net, includes non-cash adjustments to derivative instruments,
non-cash amortization of debt financing fees, and non-cash
amortization of debt discount related to our 2.00% Convertible
Senior Notes. For the quarter and six months ended June 30, 2021,
interest expense also includes non-cash write-offs of debt
financing costs related to the repurchase of our 2.00% Convertible
Senior Notes, the cancellation of the holding company revolving
credit facility in January 2021, and the full repayment of the
Hawaii Gas $100.0 million senior secured notes. In connection with
the repayment of the Hawaii Gas $100.0 million senior secured
notes, the Company paid a $4.7 million 'make-whole'
payment.
|
|
|
(2)
|
Other non-cash
expense (income), net, includes primarily non-cash mark-to-market
adjustment of the value of the commodity hedge contracts, non-cash
compensation expense incurred in relation to the incentive plans
for senior management of our operating businesses, and non-cash
gains (losses) related to the write-off or disposal of assets or
liabilities. Other non-cash expense (income), net, excludes the
adjustment to bad debt expense related to the specific reserve
component, net of recoveries, for which this adjustment is reported
in working capital in the above table. See "Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA) excluding
non-cash items and Free Cash Flow" above for further
discussion.
|
View original
content:https://www.prnewswire.com/news-releases/mic-reports-second-quarter-2021-financial-and-operational-results-301346578.html
SOURCE Macquarie Infrastructure Corporation