NEW YORK, Nov. 2, 2021 /PRNewswire/ -- Macquarie
Infrastructure Holdings, LLC (NYSE: MIC) (the "Company") today
announced its financial and operational results from continuing
operations for the third quarter of 2021.
"Our reported results reflect the previously announced closing
of the sale of Atlantic Aviation which resulted in a distribution
of $37.386817 per unit in cash on
October 7, 2021," said Christopher Frost, chief executive officer of
MIC. "We continue to expect the merger of the Company with an
entity managed by Argo Infrastructure Partners, LP will be
concluded in the first half of 2022 and result in consideration of
$3.83 per unit in cash being
distributed."
"Following the sale of Atlantic Aviation, holders of the
Company's 2.00% Convertible Senior Notes, due in 2023, were
entitled to put their notes to us at par plus accrued interest.
Approximately $26.9 million of Notes
were repurchased on October 22, 2021,
leaving approximately $6.8 million
outstanding," Frost added.
Financial and Operational Results
MIC's results from continuing operations for the third quarter
of 2021 reflect improving conditions for its businesses as the
number of visitors to Hawaii
continued to recover from COVID-induced lows. Visitors to the
islands increased to approximately 79% of pre-pandemic levels
during the period. The resulting increase in hotel occupancy
and restaurant patronage contributed to a 47% increase in gas
consumption compared with the third quarter of 2020 ("prior
comparable period").
The financial impact of the increased consumption was partially
offset by a higher wholesale cost of Liquified Petroleum Gas
("LPG") distributed by Hawaii Gas. Overall gas consumption was 7%
below the levels recorded in the third quarter of 2019.
Each of MIC's key financial performance metrics reflect the
impact of increased expenses of approximately $280.2 million primarily associated with the sale
of its Atlantic Aviation business and with the Company's
reorganization as a limited liability company.
MIC recorded a net loss from continuing operations of
$274.7 million in the third quarter
compared with a net loss of $5.5
million in the prior comparable period.
The Company reported Adjusted EBITDA excluding non-cash items
from continuing operations of $9.0
million for the quarter, versus $5.4
million in the third quarter of 2020.
MIC used $271.5 million of cash in
operating activities during the quarter compared with cash
generated of $1.5 million in the
prior comparable period.
The Company reported Adjusted Free Cash Flow from continuing
operations of $7.9 million for the
quarter, versus $2.2 million in the
third quarter of 2020.
Summary Financial Information
|
Quarter
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Unit and Per Unit Data)
(Unaudited)
|
GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(274,651)
|
|
|
$
|
(5,490)
|
|
|
(269,161)
|
|
|
NM
|
|
$
|
(296,461)
|
|
|
$
|
(25,192)
|
|
|
(271,269)
|
|
|
NM
|
Net loss
per unit attributable to MIH
|
(3.12)
|
|
|
(0.06)
|
|
|
(3.06)
|
|
|
NM
|
|
(3.38)
|
|
|
(0.29)
|
|
|
(3.09)
|
|
|
NM
|
Cash (used in)
provided by operating activities
|
(271,548)
|
|
|
1,462
|
|
|
(273,010)
|
|
|
NM
|
|
(292,199)
|
|
|
(1,324)
|
|
|
(290,875)
|
|
|
NM
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
2,954,444
|
|
|
$
|
(887,880)
|
|
|
3,842,324
|
|
|
NM
|
|
$
|
2,996,984
|
|
|
$
|
(864,249)
|
|
|
3,861,233
|
|
|
NM
|
Net income (loss) per unit
attributable to MIH
|
33.61
|
|
|
(10.20)
|
|
|
43.81
|
|
|
NM
|
|
34.19
|
|
|
(9.95)
|
|
|
44.14
|
|
|
NM
|
Cash provided by
operating activities
|
47,860
|
|
|
108,125
|
|
|
(60,265)
|
|
|
(56)
|
|
|
28,965
|
|
|
283,506
|
|
|
(254,541)
|
|
|
(90)
|
|
Weighted average number of
units outstanding: basic
|
87,891,018
|
|
|
87,030,751
|
|
|
860,267
|
|
|
1
|
|
|
87,645,390
|
|
|
86,864,951
|
|
|
780,439
|
|
|
1
|
|
MIH Non-GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
(271,181)
|
|
|
$
|
2,052
|
|
|
(273,233)
|
|
|
NM
|
|
$
|
(260,248)
|
|
|
$
|
8,258
|
|
|
(268,506)
|
|
|
NM
|
Investment and
acquisition/disposition costs
|
280,161
|
|
|
3,335
|
|
|
276,826
|
|
|
NM
|
|
291,036
|
|
|
16,161
|
|
|
274,875
|
|
|
NM
|
Adjusted EBITDA
excluding non - cash items–continuing operations
|
8,980
|
|
|
5,387
|
|
|
3,593
|
|
|
67
|
|
|
30,788
|
|
|
24,419
|
|
|
6,369
|
|
|
26
|
|
Cash
interest
|
(616)
|
|
|
(3,546)
|
|
|
2,930
|
|
|
83
|
|
|
(9,478)
|
|
|
(10,935)
|
|
|
1,457
|
|
|
13
|
|
Cash taxes
|
1,580
|
|
|
1,765
|
|
|
(185)
|
|
|
(10)
|
|
|
5,935
|
|
|
7,973
|
|
|
(2,038)
|
|
|
(26)
|
|
Maintenance capital
expenditures
|
(2,007)
|
|
|
(1,389)
|
|
|
(618)
|
|
|
(44)
|
|
|
(4,767)
|
|
|
(5,435)
|
|
|
668
|
|
|
12
|
|
Adjusted Free Cash
Flow - continuing operations
|
$
|
7,937
|
|
|
$
|
2,217
|
|
|
5,720
|
|
|
NM
|
|
$
|
22,478
|
|
|
$
|
16,022
|
|
|
6,456
|
|
|
40
|
|
About MIC
MIC owns and operates businesses providing energy services,
production and distribution in 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 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 its capitalization and tax attributes. 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 is an owner 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 and to reduce or repay
indebtedness. 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 its operations and the generation of
non-cash depreciation and amortization; (ii) units 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 and reduce or repay
indebtedness.
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 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.
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 the proposed
sale of the Company 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 announced sale; uncertainties as to the timing of the
consummation of the proposed transaction; the risk that conditions
to closing of the proposed transaction are not satisfied, including
the failure to timely obtain the requisite approvals or regulatory
clearances; the occurrence of any event giving rise to a
termination of the proposed transaction; 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,
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 press release may not occur. These forward-looking statements
are made as of the date of this press release. 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 HOLDINGS, LLC
|
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
($ in Thousands,
Except Unit Data)
|
|
|
September
30,
2021
|
|
December 31,
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,371,973
|
|
|
$
|
1,518,108
|
|
Restricted
cash
|
955
|
|
|
1,036
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
25,279
|
|
|
23,113
|
|
Inventories
|
10,543
|
|
|
9,564
|
|
Prepaid
expenses
|
4,334
|
|
|
2,212
|
|
Other current
assets
|
6,924
|
|
|
1,715
|
|
Current assets held
for sale(1)
|
—
|
|
|
2,185,002
|
|
Total current
assets
|
3,420,008
|
|
|
3,740,750
|
|
Property, equipment,
land and leasehold improvements, net
|
296,637
|
|
|
297,375
|
|
Operating lease
assets, net
|
11,455
|
|
|
9,878
|
|
Goodwill
|
120,193
|
|
|
120,193
|
|
Intangible assets,
net
|
4,604
|
|
|
4,923
|
|
Other noncurrent
assets
|
11,067
|
|
|
5,520
|
|
Total
assets
|
$
|
3,863,964
|
|
|
$
|
4,178,639
|
|
LIABILITIES AND
UNITHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Due to
Manager-related party
|
$
|
57
|
|
|
$
|
1,203
|
|
Accounts
payable
|
6,820
|
|
|
13,082
|
|
Accrued
expenses
|
18,891
|
|
|
17,798
|
|
Current portion of
long-term debt
|
28,292
|
|
|
1,060
|
|
Distribution
payable
|
3,297,420
|
|
|
960,981
|
|
Operating lease
liabilities - current
|
1,829
|
|
|
2,019
|
|
Other current
liabilities
|
4,755
|
|
|
9,591
|
|
Current liabilities
held for sale(1)
|
—
|
|
|
1,613,830
|
|
Total current
liabilities
|
3,358,064
|
|
|
2,619,564
|
|
Long-term debt, net
of current portion
|
97,861
|
|
|
578,169
|
|
Deferred income
taxes
|
27,294
|
|
|
26,453
|
|
Operating lease
liabilities - noncurrent
|
9,581
|
|
|
7,869
|
|
Other noncurrent
liabilities
|
53,647
|
|
|
53,278
|
|
Total
liabilities
|
3,546,447
|
|
|
3,285,333
|
|
Commitments and
contingencies
|
—
|
|
|
—
|
|
Unitholders'
equity(2):
|
|
|
|
Common Units paid in
capital (500,000,000 authorized; 88,197,409 units issued and
outstanding
on September
30, 2021 and 87,361,929 units issued and outstanding on December
31, 2020)
|
192,207
|
|
|
178,062
|
|
Accumulated other
comprehensive loss
|
(6,171)
|
|
|
(6,175)
|
|
Retained
earnings
|
123,027
|
|
|
713,129
|
|
Total unitholders'
equity
|
309,063
|
|
|
885,016
|
|
Noncontrolling
interests
|
8,454
|
|
|
8,290
|
|
Total
equity
|
317,517
|
|
|
893,306
|
|
Total liabilities and
equity
|
$
|
3,863,964
|
|
|
$
|
4,178,639
|
|
|
|
|
|
|
|
(1)
|
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 September 30, 2021, for discussions on
businesses classified as held for sale.
|
|
|
(2)
|
The Company is
authorized to issue 100,000,000 preferred units. On September 30,
2021 and December 31, 2020, no preferred units were issued or
outstanding. The Company had 100 special units issued and
outstanding to its Manager on September 30, 2021 and December 31,
2020.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($ in Thousands,
Except Unit and Per Unit Data)
|
|
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
Product
revenue
|
$
|
60,086
|
|
|
$
|
39,036
|
|
|
$
|
173,413
|
|
|
$
|
136,293
|
|
Total
revenue
|
60,086
|
|
|
39,036
|
|
|
173,413
|
|
|
136,293
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of product
sales
|
40,613
|
|
|
25,059
|
|
|
113,203
|
|
|
85,218
|
|
Selling, general and
administrative
|
61,704
|
|
|
11,135
|
|
|
88,429
|
|
|
40,561
|
|
Disposition payment to
Manager
|
228,551
|
|
|
—
|
|
|
228,570
|
|
|
—
|
|
Total Selling,
general and administrative
|
290,255
|
|
|
11,135
|
|
|
316,999
|
|
|
40,561
|
|
Fees to Manager -
related party
|
7,698
|
|
|
4,980
|
|
|
20,801
|
|
|
16,160
|
|
Depreciation
|
3,757
|
|
|
3,717
|
|
|
11,133
|
|
|
10,906
|
|
Amortization of
intangibles
|
107
|
|
|
105
|
|
|
319
|
|
|
318
|
|
Total operating
expenses
|
342,430
|
|
|
44,996
|
|
|
462,455
|
|
|
153,163
|
|
Operating
loss
|
(282,344)
|
|
|
(5,960)
|
|
|
(289,042)
|
|
|
(16,870)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
6
|
|
|
(42)
|
|
|
22
|
|
|
22
|
|
Interest
expense(1)
|
(948)
|
|
|
(4,905)
|
|
|
(13,991)
|
|
|
(16,215)
|
|
Other income
(expense), net
|
180
|
|
|
(769)
|
|
|
(238)
|
|
|
(937)
|
|
Net loss from
continuing operations before income taxes
|
(283,106)
|
|
|
(11,676)
|
|
|
(303,249)
|
|
|
(34,000)
|
|
Benefit for income
taxes
|
8,455
|
|
|
6,186
|
|
|
6,788
|
|
|
8,808
|
|
Net loss from
continuing operations
|
(274,651)
|
|
|
(5,490)
|
|
|
(296,461)
|
|
|
(25,192)
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations(2)
|
|
|
|
|
|
|
|
Net income (loss)
from discontinued operations before income taxes
|
3,004,955
|
|
|
(718,061)
|
|
|
3,063,442
|
|
|
(688,499)
|
|
Provision for income
taxes
|
(50,511)
|
|
|
(169,819)
|
|
|
(66,458)
|
|
|
(175,750)
|
|
Net income (loss)
from discontinued operations
|
2,954,444
|
|
|
(887,880)
|
|
|
2,996,984
|
|
|
(864,249)
|
|
Net income
(loss)
|
2,679,793
|
|
|
(893,370)
|
|
|
2,700,523
|
|
|
(889,441)
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
(274,651)
|
|
|
(5,490)
|
|
|
(296,461)
|
|
|
(25,192)
|
|
Less: net (loss)
income attributable to noncontrolling interest
|
(14)
|
|
|
(122)
|
|
|
167
|
|
|
459
|
|
Net loss from
continuing operations attributable to MIH
|
(274,637)
|
|
|
(5,368)
|
|
|
(296,628)
|
|
|
(25,651)
|
|
Net income (loss)
from discontinued operations
|
2,954,444
|
|
|
(887,880)
|
|
|
2,996,984
|
|
|
(864,249)
|
|
Net income (loss)
from discontinued operations attributable to MIH
|
|
2,954,444
|
|
|
|
(887,880)
|
|
|
|
2,996,984
|
|
|
|
(864,249)
|
|
Net income (loss)
attributable to MIH
|
$
|
2,679,807
|
|
|
$
|
(893,248)
|
|
|
$
|
2,700,356
|
|
|
$
|
(889,900)
|
|
|
|
|
|
|
|
|
|
Basic loss per units
from continuing operations attributable to MIH
|
$
|
(3.12)
|
|
|
$
|
(0.06)
|
|
|
$
|
(3.38)
|
|
|
$
|
(0.29)
|
|
Basic income (loss)
per units from discontinued operations attributable to
MIH
|
33.61
|
|
|
(10.20)
|
|
|
34.19
|
|
|
(9.95)
|
|
Basic income (loss)
per units attributable to MIH
|
$
|
30.49
|
|
|
$
|
(10.26)
|
|
|
$
|
30.81
|
|
|
$
|
(10.24)
|
|
Weighted average
number of units outstanding: basic
|
87,891,018
|
|
|
87,030,751
|
|
|
87,645,390
|
|
|
86,864,951
|
|
|
|
|
|
|
|
|
|
Diluted loss per unit
from continuing operations attributable to MIH
|
$
|
(3.12)
|
|
|
$
|
(0.06)
|
|
|
$
|
(3.38)
|
|
|
$
|
(0.29)
|
|
Diluted income
(loss) per unit from discontinued operations attributable to
MIH
|
33.61
|
|
|
(10.20)
|
|
|
34.19
|
|
|
(9.95)
|
|
Diluted income (loss)
per unit attributable to MIH
|
$
|
30.49
|
|
|
$
|
(10.26)
|
|
|
$
|
30.81
|
|
|
$
|
(10.24)
|
|
Weighted average
number of units outstanding: diluted
|
87,891,018
|
|
|
87,030,751
|
|
|
87,645,390
|
|
|
86,864,951
|
|
Cash distributions
declared per unit
|
$
|
37.386817
|
|
|
$
|
—
|
|
|
$
|
37.386817
|
|
|
$
|
—
|
|
|
|
|
|
|
|
(1)
|
Interest expense
includes non-cash gains on derivative instruments of $8,000 and
$213,000 for the quarter and nine months ended September 30, 2021,
respectively, compared with non-cash losses of $7,000 and $963,000
for the quarter and nine months ended September 30, 2020,
respectively.
|
|
|
(2)
|
See Note 4,
"Discontinued Operations and Dispositions", in our Notes to
Consolidated Condensed Financial Statements in Part I of Form 10-Q
for the quarter ended September 30, 2021, for discussions on
businesses classified as held for sale.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ in
Thousands)
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
Net loss from
continuing operations
|
$
|
(296,461)
|
|
|
$
|
(25,192)
|
|
Adjustments to
reconcile net loss to net cash used in operating activities from
continuing operations:
|
|
|
|
Depreciation
|
11,133
|
|
|
10,906
|
|
Amortization of
intangibles
|
319
|
|
|
318
|
|
Write-off of debt
financing costs
|
4,170
|
|
|
2,882
|
|
Amortization of debt
discount and financing costs
|
664
|
|
|
1,414
|
|
Adjustments to
derivative instruments
|
(7,628)
|
|
|
(4,290)
|
|
Fees to Manager -
related party
|
20,801
|
|
|
16,160
|
|
Deferred
taxes
|
(853)
|
|
|
(835)
|
|
Other non-cash
expense, net
|
4,274
|
|
|
4,085
|
|
Changes in other
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(2,065)
|
|
|
6,764
|
|
Inventories
|
(2,142)
|
|
|
(272)
|
|
Prepaid expenses and
other current assets
|
(3,834)
|
|
|
(1,531)
|
|
Accounts payable and
accrued expenses
|
(6,841)
|
|
|
(3,376)
|
|
Income taxes
payable
|
(6,837)
|
|
|
(10,472)
|
|
Other, net
|
(6,899)
|
|
|
2,115
|
|
Net cash used in
operating activities from continuing operations
|
(292,199)
|
|
|
(1,324)
|
|
Investing
activities
|
|
|
|
Purchases of property
and equipment
|
(10,314)
|
|
|
(10,790)
|
|
Other, net
|
72
|
|
|
36
|
|
Net cash used in
investing activities from continuing operations
|
(10,242)
|
|
|
(10,754)
|
|
Financing
activities
|
|
|
|
Payment of long-term
debt
|
(469,253)
|
|
|
(1,003)
|
|
Dividends paid to
common unitholders
|
(960,981)
|
|
|
—
|
|
Distributions paid to
noncontrolling interest
|
(3)
|
|
|
(3)
|
|
Debt financing costs
paid
|
(292)
|
|
|
—
|
|
Net cash used in
financing activities from continuing operations
|
(1,430,529)
|
|
|
(1,006)
|
|
Net change in cash,
cash equivalents, and restricted cash from continuing
operations
|
(1,732,970)
|
|
|
(13,084)
|
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS – (continued)
(Unaudited)
($ in
Thousands)
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
Cash flows
provided by (used in) discontinued operations:
|
|
|
|
Net cash provided by
operating activities
|
$
|
28,965
|
|
|
$
|
283,506
|
|
Net cash provided by
(used in) investing activities
|
3,242,836
|
|
|
(192,913)
|
|
Net cash (used in)
provided by financing activities
|
(5,123)
|
|
|
55,120
|
|
Net cash provided by
discontinued operations
|
3,266,678
|
|
|
145,713
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
—
|
|
|
(255)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
1,533,708
|
|
|
132,374
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,839,220
|
|
|
358,565
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
3,372,928
|
|
|
$
|
490,939
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
Accrued purchases of
property and equipment from continuing operations
|
$
|
680
|
|
|
$
|
443
|
|
Accrued purchases of
property and equipment from discontinued operations
|
4,201
|
|
|
14,848
|
|
Leased
assets obtained in exchange for new operating lease liabilities
from
discontinued
operations
|
14,666
|
|
|
9,419
|
|
Cash distribution
declared, but not yet paid
|
3,297,420
|
|
|
—
|
|
Taxes received, net,
from continuing operations
|
(625)
|
|
|
—
|
|
Taxes paid, net, from
discontinued operations
|
143,906
|
|
|
4,970
|
|
Interest paid, net,
from continuing operations
|
12,901
|
|
|
10,165
|
|
Interest paid, net,
from discontinued operations
|
29,616
|
|
|
68,544
|
|
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 September
30,
|
|
2021
|
|
2020
|
Cash and cash
equivalents
|
$
|
3,371,973
|
|
|
$
|
32,667
|
|
Restricted cash -
current
|
955
|
|
|
1,374
|
|
Cash, cash
equivalents, and restricted cash included in assets held for
sale
|
—
|
|
|
456,898
|
|
Total of cash, cash
equivalents, and restricted cash shown in the consolidated
condensed statements of cash flows
|
$
|
3,372,928
|
|
|
$
|
490,939
|
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS – MD&A
|
|
|
Quarter
Ended
September 30,
|
|
Change
Favorable/(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Unit and Per Unit Data)
(Unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
revenue
|
$
|
60,086
|
|
|
$
|
39,036
|
|
|
21,050
|
|
|
54
|
|
|
$
|
173,413
|
|
|
$
|
136,293
|
|
|
37,120
|
|
|
27
|
|
Total
revenue
|
60,086
|
|
|
39,036
|
|
|
21,050
|
|
|
54
|
|
|
173,413
|
|
|
136,293
|
|
|
37,120
|
|
|
27
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
sales
|
40,613
|
|
|
25,059
|
|
|
(15,554)
|
|
|
(62)
|
|
|
113,203
|
|
|
85,218
|
|
|
(27,985)
|
|
|
(33)
|
|
Selling, general and
administrative
|
61,704
|
|
|
11,135
|
|
|
(50,569)
|
|
|
NM
|
|
|
88,429
|
|
|
40,561
|
|
|
(47,868)
|
|
|
(118)
|
|
Disposition payment to
Manager
|
228,551
|
|
|
—
|
|
|
(228,551)
|
|
|
NM
|
|
|
228,570
|
|
|
—
|
|
|
(228,570)
|
|
|
NM
|
|
Total Selling,
general and administrative
|
290,255
|
|
|
11,135
|
|
|
(279,120)
|
|
|
NM
|
|
|
316,999
|
|
|
40,561
|
|
|
(276,438)
|
|
|
NM
|
|
Fees to Manager -
related party
|
7,698
|
|
|
4,980
|
|
|
(2,718)
|
|
|
(55)
|
|
|
20,801
|
|
|
16,160
|
|
|
(4,641)
|
|
|
(29)
|
|
Depreciation and
amortization
|
3,864
|
|
|
3,822
|
|
|
(42)
|
|
|
(1)
|
|
|
11,452
|
|
|
11,224
|
|
|
(228)
|
|
|
(2)
|
|
Total operating
expenses
|
342,430
|
|
|
44,996
|
|
|
(297,434)
|
|
|
NM
|
|
|
462,455
|
|
|
153,163
|
|
|
(309,292)
|
|
|
NM
|
|
Operating
loss
|
(282,344)
|
|
|
(5,960)
|
|
|
(276,384)
|
|
|
NM
|
|
|
(289,042)
|
|
|
(16,870)
|
|
|
(272,172)
|
|
|
NM
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
6
|
|
|
(42)
|
|
|
48
|
|
|
114
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
Interest
expense(1)
|
(948)
|
|
|
(4,905)
|
|
|
3,957
|
|
|
81
|
|
|
(13,991)
|
|
|
(16,215)
|
|
|
2,224
|
|
|
14
|
|
Other income
(expense), net
|
180
|
|
|
(769)
|
|
|
949
|
|
|
123
|
|
|
(238)
|
|
|
(937)
|
|
|
699
|
|
|
75
|
|
Net loss from
continuing operations before income taxes
|
(283,106)
|
|
|
(11,676)
|
|
|
(271,430)
|
|
|
NM
|
|
|
(303,249)
|
|
|
(34,000)
|
|
|
(269,249)
|
|
|
NM
|
|
Benefit for income
taxes
|
8,455
|
|
|
6,186
|
|
|
2,269
|
|
|
37
|
|
|
6,788
|
|
|
8,808
|
|
|
(2,020)
|
|
|
(23)
|
|
Net loss from
continuing operations
|
(274,651)
|
|
|
(5,490)
|
|
|
(269,161)
|
|
|
NM
|
|
|
(296,461)
|
|
|
(25,192)
|
|
|
(271,269)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from discontinued operations before income taxes
|
3,004,955
|
|
|
(718,061)
|
|
|
3,723,016
|
|
|
NM
|
|
|
3,063,442
|
|
|
(688,499)
|
|
|
3,751,941
|
|
|
NM
|
|
Provision for income
taxes
|
(50,511)
|
|
|
(169,819)
|
|
|
119,308
|
|
|
70
|
|
|
(66,458)
|
|
|
(175,750)
|
|
|
109,292
|
|
|
62
|
|
Net income (loss)
from discontinued operations
|
2,954,444
|
|
|
(887,880)
|
|
|
3,842,324
|
|
|
NM
|
|
|
2,996,984
|
|
|
(864,249)
|
|
|
3,861,233
|
|
|
NM
|
|
Net income
(loss)
|
2,679,793
|
|
|
(893,370)
|
|
|
3,573,163
|
|
|
NM
|
|
|
2,700,523
|
|
|
(889,441)
|
|
|
3,589,964
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
(274,651)
|
|
|
(5,490)
|
|
|
(269,161)
|
|
|
NM
|
|
|
(296,461)
|
|
|
(25,192)
|
|
|
(271,269)
|
|
|
NM
|
|
Less: net (loss)
income attributable to noncontrolling interests
|
(14)
|
|
|
(122)
|
|
|
(108)
|
|
|
(89)
|
|
|
167
|
|
|
459
|
|
|
292
|
|
|
64
|
|
Net loss from
continuing operations attributable to MIH
|
(274,637)
|
|
|
(5,368)
|
|
|
(269,269)
|
|
|
NM
|
|
|
(296,628)
|
|
|
(25,651)
|
|
|
(270,977)
|
|
|
NM
|
|
Net income (loss)
from discontinued operations
|
2,954,444
|
|
|
(887,880)
|
|
|
3,842,324
|
|
|
NM
|
|
|
2,996,984
|
|
|
(864,249)
|
|
|
3,861,233
|
|
|
NM
|
|
Net income (loss)
from discontinued operations attributable to MIH
|
2,954,444
|
|
|
(887,880)
|
|
|
3,842,324
|
|
|
NM
|
|
|
2,996,984
|
|
|
(864,249)
|
|
|
3,861,233
|
|
|
NM
|
|
Net income (loss)
attributable to MIH
|
$
|
2,679,807
|
|
|
$
|
(893,248)
|
|
|
3,573,055
|
|
|
NM
|
|
|
$
|
2,700,356
|
|
|
$
|
(889,900)
|
|
|
3,590,256
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
unit from continuing operations attributable to MIH
|
$
|
(3.12)
|
|
|
$
|
(0.06)
|
|
|
(3.06)
|
|
|
NM
|
|
|
$
|
(3.38)
|
|
|
$
|
(0.29)
|
|
|
(3.09)
|
|
|
NM
|
|
Basic income (loss)
per unit from discontinued operations attributable to
MIH
|
33.61
|
|
|
(10.20)
|
|
|
43.81
|
|
|
NM
|
|
|
34.19
|
|
|
(9.95)
|
|
|
44.14
|
|
|
NM
|
|
Basic income (loss)
per unit attributable to MIH
|
$
|
30.49
|
|
|
$
|
(10.26)
|
|
|
40.75
|
|
|
NM
|
|
|
$
|
30.81
|
|
|
$
|
(10.24)
|
|
|
41.05
|
|
|
NM
|
|
Weighted average
number of units outstanding:
basic
|
87,891,018
|
|
|
87,030,751
|
|
|
860,267
|
|
|
1
|
|
|
87,645,390
|
|
|
86,864,951
|
|
|
780,439
|
|
|
1
|
|
|
|
|
|
|
|
NM — Not
meaningful.
|
|
|
(1)
|
Interest expense
includes non-cash gains on derivative instruments of $8,000 and
$213,000 for the quarter and nine months ended September 30, 2021,
respectively, compared with non-cash losses of $7,000 and $963,000
for the quarter and nine months ended September 30, 2020,
respectively.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
|
|
RECONCILIATION OF
CONSOLIDATED NET LOSS TO EBITDA EXCLUDING
NON-CASH ITEMS AND
A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
|
Quarter
Ended
September
30,
|
|
Change
Favorable/(Unfavorable)
|
|
Nine Months
Ended
September
30,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Net loss from
continuing operations
|
$
|
(274,651)
|
|
|
$
|
(5,490)
|
|
|
|
|
|
|
$
|
(296,461)
|
|
|
$
|
(25,192)
|
|
|
|
|
|
Interest expense,
net(1)
|
942
|
|
|
4,947
|
|
|
|
|
|
|
13,969
|
|
|
16,193
|
|
|
|
|
|
Benefit for income
taxes
|
(8,455)
|
|
|
(6,186)
|
|
|
|
|
|
|
(6,788)
|
|
|
(8,808)
|
|
|
|
|
|
Depreciation and
amortization
|
3,864
|
|
|
3,822
|
|
|
|
|
|
|
11,452
|
|
|
11,224
|
|
|
|
|
|
Fees to Manager -
related party
|
7,698
|
|
|
4,980
|
|
|
|
|
|
|
20,801
|
|
|
16,160
|
|
|
|
|
|
Other non-cash
income, net(2)
|
(579)
|
|
|
(21)
|
|
|
|
|
|
|
(3,221)
|
|
|
(1,319)
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
(271,181)
|
|
|
$
|
2,052
|
|
|
(273,233)
|
|
|
NM
|
|
$
|
(260,248)
|
|
|
$
|
8,258
|
|
|
(268,506)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing operations
|
$
|
(271,181)
|
|
|
$
|
2,052
|
|
|
|
|
|
|
$
|
(260,248)
|
|
|
$
|
8,258
|
|
|
|
|
|
Interest expense,
net(1)
|
(942)
|
|
|
(4,947)
|
|
|
|
|
|
|
(13,969)
|
|
|
(16,193)
|
|
|
|
|
|
Non-cash interest
expense, net(1)
|
326
|
|
|
1,401
|
|
|
|
|
|
|
4,491
|
|
|
5,258
|
|
|
|
|
|
Benefit for current
income taxes
|
1,580
|
|
|
1,765
|
|
|
|
|
|
|
5,935
|
|
|
7,973
|
|
|
|
|
|
Changes in working
capital
|
(1,331)
|
|
|
1,191
|
|
|
|
|
|
|
(28,408)
|
|
|
(6,620)
|
|
|
|
|
|
Cash (used in)
provided by operating activities - continuing operations
|
(271,548)
|
|
|
1,462
|
|
|
|
|
|
|
(292,199)
|
|
|
(1,324)
|
|
|
|
|
|
Changes in working
capital
|
1,331
|
|
|
(1,191)
|
|
|
|
|
|
|
28,408
|
|
|
6,620
|
|
|
|
|
|
Maintenance capital
expenditures
|
(2,007)
|
|
|
(1,389)
|
|
|
|
|
|
|
(4,767)
|
|
|
(5,435)
|
|
|
|
|
|
Free cash flow -
continuing operations
|
$
|
(272,224)
|
|
|
$
|
(1,118)
|
|
|
(271,106)
|
|
|
NM
|
|
$
|
(268,558)
|
|
|
$
|
(139)
|
|
|
(268,419)
|
|
|
NM
|
|
|
|
|
|
|
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 nine months ended September 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 full repayment of $100.0 million of senior
secured notes at Hawaii Gas. 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, 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, 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-third-quarter-2021-financial-and-operational-results-301413676.html
SOURCE Macquarie Infrastructure Holdings, LLC