NEW YORK, Feb. 22, 2022 /PRNewswire/ -- Macquarie
Infrastructure Holdings, LLC (NYSE: MIC) (the "Company") today
announced its financial and operational results from continuing
operations for the fourth quarter and full year 2021.
"Following the successful conclusion of the sales of our IMTT
and Atlantic Aviation businesses, our continuing operations are
composed principally of Hawaii Gas," said Christopher Frost, chief executive officer of
MIC. "The ongoing approval process related to the proposed merger
of the Company with an entity managed by Argo Infrastructure
Partners, LP is proceeding as anticipated. We continue to expect to
receive the remaining approval from the Hawaii Public Utilities
Commission and to conclude the transaction in the first half of
2022."
"If the merger is concluded on or prior to July 1, 2022, unitholders will receive merger
consideration of $3.83 per unit in
cash," Frost added. "If the merger is concluded after July 1, 2022, unitholders will receive
$4.11 per unit in cash."
"Our financial results from continuing operations in the fourth
quarter and full year 2021 reflect a continued increase in the
number of people visiting Hawaii
and the resulting growth in gas sales by our Hawaii Gas business,"
said Frost.
Financial and Operational Results
MIC's ongoing businesses include Hawaii Gas and several smaller
operations collectively engaged in efforts to reduce the cost and
improve the reliability and sustainability of energy in
Hawaii. These businesses generate
revenue primarily from the provision of gas to commercial,
residential, and governmental customers and the generation of
power.
MIC's results from continuing operations in 2021 reflect
improving conditions for its operations as the number of visitors
to Hawaii recovers from
COVID-induced lows. The number of visitors to Hawaii increased to approximately 65% of
pre-pandemic levels for the full year. The increase in the number
of visitors drove hotel occupancy and restaurant patronage higher
and consequently gas sales by Hawaii Gas.
The volume of gas sold by Hawaii Gas increased 21% in 2021
versus 2020. The financial impact of the increase in sales was
partially offset by a higher average wholesale cost of Liquified
Petroleum Gas distributed by the business. The total volume of gas
sold was 11% below the level recorded in 2019 prior to the
pandemic.
Each of MIC's key financial performance metrics for 2021 reflect
the impact of increased expenses of approximately $291.3 million primarily associated with the sale
of its Atlantic Aviation business and the Company's reorganization
as a limited liability company. The majority of these expenses were
incurred in the third quarter of the year.
MIC recorded a net loss from continuing operations of
$300.3 million in 2021 compared with
a net loss of $96.6 million in
2020.
The Company reported Adjusted EBITDA excluding non-cash items
from continuing operations (excluding the above-noted transaction
and reorganization expenses) of $39.2
million in 2021 versus $34.2
million in 2020.
MIC used $288.2 million of cash in
operating activities during the year compared with use of
$46.4 million in 2020.
The Company reported Adjusted Free Cash Flow from continuing
operations (excluding the above-noted transaction and
reorganization expenses) of $27.8
million in 2021 versus $12.1
million in 2020.
Summary Financial Information
|
Quarter
Ended
December 31,
|
|
Change
Favorable/
(Unfavorable)
|
|
Year Ended
December 31,
|
|
Change
Favorable/
(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Unit and Per Unit Data) (Unaudited)
|
GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(3,833)
|
|
$
(71,453)
|
|
67,620
|
|
95
|
|
$
(300,294)
|
|
$
(96,645)
|
|
(203,649)
|
|
NM
|
Net loss per unit
attributable to MIH
|
(0.05)
|
|
(0.82)
|
|
0.77
|
|
94
|
|
(3.42)
|
|
(1.11)
|
|
(2.31)
|
|
NM
|
Cash provided by
(used in) operating activities
|
4,012
|
|
(45,034)
|
|
49,046
|
|
109
|
|
(288,187)
|
|
(46,358)
|
|
(241,829)
|
|
NM
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(12,631)
|
|
$
33,170
|
|
(45,801)
|
|
(138)
|
|
$
2,984,353
|
|
$
(831,079)
|
|
3,815,432
|
|
NM
|
Net (loss) income per
unit attributable to MIH
|
(0.14)
|
|
0.38
|
|
(0.52)
|
|
(137)
|
|
33.99
|
|
(9.56)
|
|
43.55
|
|
NM
|
Cash provided by
operating activities
|
—
|
|
103,477
|
|
(103,477)
|
|
(100)
|
|
28,965
|
|
386,983
|
|
(358,018)
|
|
(93)
|
Weighted average
number of units outstanding: basic
|
88,226,852
|
|
87,209,829
|
|
1,017,023
|
|
1
|
|
87,791,951
|
|
86,951,642
|
|
840,309
|
|
1
|
MIH Non-GAAP
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing
operations
|
$
8,141
|
|
$
(43,761)
|
|
51,902
|
|
119
|
|
$
(252,107)
|
|
$
(35,503)
|
|
(216,604)
|
|
NM
|
Investment and
acquisition/disposition costs
|
222
|
|
53,517
|
|
(53,295)
|
|
(100)
|
|
291,258
|
|
69,678
|
|
221,580
|
|
NM
|
Adjusted EBITDA
excluding non - cash items–
continuing operations
|
8,363
|
|
9,756
|
|
(1,393)
|
|
(14)
|
|
39,151
|
|
34,175
|
|
4,976
|
|
15
|
Cash
interest
|
(474)
|
|
(3,531)
|
|
3,057
|
|
87
|
|
(9,952)
|
|
(14,466)
|
|
4,514
|
|
31
|
Cash taxes
(1)
|
(720)
|
|
(8,774)
|
|
8,054
|
|
92
|
|
5,215
|
|
(801)
|
|
6,016
|
|
NM
|
Maintenance capital
expenditures
|
(1,801)
|
|
(1,327)
|
|
(474)
|
|
(36)
|
|
(6,568)
|
|
(6,762)
|
|
194
|
|
3
|
Adjusted Free Cash
Flow - continuing operations
|
$
5,368
|
|
$
(3,876)
|
|
9,244
|
|
NM
|
|
$
27,846
|
|
$
12,146
|
|
15,700
|
|
129
|
|
|
|
|
|
|
|
|
|
|
|
NM — Not
meaningful.
|
(1)
|
Cash taxes in 2021
includes a $7.4 million benefit for income taxes that will be
utilized by discontinued operations.
|
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 business.
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 position.
The Company believes investors use EBITDA excluding non-cash
items primarily as a measure of its operating performance
and to make comparisons with the operating performance of other
businesses whose depreciation and amortization expense may vary
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 units.
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, to reduce or repay
indebtedness, and/or to return capital to unitholders. 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, could 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 unitholders.
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
business 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 Loss to EBITDA
excluding non-cash items from continuing operations and a
reconciliation of cash provided by (used in) 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, 2021, 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
BALANCE SHEETS
($ in Thousands,
Except Unit Data)
|
|
As of December
31,
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
47,259
|
|
$
1,518,108
|
Restricted
cash
|
1,051
|
|
1,036
|
Accounts receivable,
net of allowance for doubtful accounts
|
27,824
|
|
23,113
|
Inventories
|
11,658
|
|
9,564
|
Prepaid
expenses
|
1,813
|
|
2,212
|
Other current
assets
|
3,164
|
|
1,715
|
Current assets held
for sale(1)
|
—
|
|
2,185,002
|
Total current
assets
|
92,769
|
|
3,740,750
|
Property, equipment,
land, and leasehold improvements, net
|
297,190
|
|
297,375
|
Operating lease
assets, net
|
12,591
|
|
9,878
|
Goodwill
|
120,193
|
|
120,193
|
Intangible assets,
net
|
4,498
|
|
4,923
|
Other noncurrent
assets
|
9,210
|
|
5,520
|
Total
assets
|
$
536,451
|
|
$
4,178,639
|
LIABILITIES AND
UNITHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Due to
Manager-related party
|
$
260
|
|
$
1,203
|
Accounts
payable
|
6,169
|
|
13,082
|
Accrued
expenses
|
18,449
|
|
17,798
|
Current portion of
long-term debt
|
1,107
|
|
1,060
|
Distribution
payable
|
—
|
|
960,981
|
Operating lease
liabilities - current
|
1,794
|
|
2,019
|
Other current
liabilities
|
5,223
|
|
9,591
|
Current liabilities
held for sale(1)
|
—
|
|
1,613,830
|
Total current
liabilities
|
33,002
|
|
2,619,564
|
Long-term debt, net
of current portion
|
97,655
|
|
578,169
|
Deferred income
taxes
|
38,540
|
|
26,453
|
Operating lease
liabilities - noncurrent
|
10,810
|
|
7,869
|
Other noncurrent
liabilities
|
53,062
|
|
53,278
|
Total
liabilities
|
233,069
|
|
3,285,333
|
Commitments and
contingencies
|
—
|
|
—
|
Unitholders'
equity(2):
|
|
|
|
Common units paid in
capital (500,000,000 authorized; 88,343,762 and 87,361,929 units
issued and outstanding
on December
31, 2021 and 2020, respectively)
|
193,471
|
|
178,062
|
Accumulated other
comprehensive loss
|
(5,106)
|
|
(6,175)
|
Retained
earnings
|
106,539
|
|
713,129
|
Total unitholders'
equity
|
294,904
|
|
885,016
|
Noncontrolling
interests
|
8,478
|
|
8,290
|
Total
equity
|
303,382
|
|
893,306
|
Total liabilities and
equity
|
$
536,451
|
|
$
4,178,639
|
|
|
|
|
|
|
|
(1)
|
See Note 4,
"Discontinued Operations and Dispositions", in our Notes to
Consolidated Financial Statements in Part II, Item 8, of Form 10-K
for the year
ended December 31, 2021, for further discussions on assets and
liabilities held for sale.
|
|
|
(2)
|
The Company is
authorized to issue 100,000,000 preferred units. On December 31,
2021 and 2020, no preferred units were issued or outstanding. The
Company had 100 special units issued and outstanding to its Manager
on December 31, 2021 and 2020, respectively. See Note 11,
"Unitholders' Equity", in our Notes to Consolidated Financial
Statements in Part II, Item 8, of Form 10-K for the year ended
December 31, 2021 for further discussions.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in Thousands, Except Unit and Per Unit Data)
|
|
Year ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
Product
revenue
|
$
235,984
|
|
$
180,411
|
|
$
242,637
|
Total
revenue
|
235,984
|
|
180,411
|
|
242,637
|
Costs and
expenses
|
|
|
|
|
|
Cost of product
sales
|
165,927
|
|
112,283
|
|
165,504
|
|
|
|
|
|
|
Selling, general and
administrative
|
97,893
|
|
72,704
|
|
38,596
|
Disposition payment to
Manager
|
228,570
|
|
28,174
|
|
—
|
Total Selling,
general and administrative
|
326,463
|
|
100,878
|
|
38,596
|
Fees to Manager -
related party
|
21,857
|
|
21,063
|
|
32,103
|
Depreciation
|
15,313
|
|
15,463
|
|
14,985
|
Amortization of
intangibles
|
425
|
|
425
|
|
425
|
Total operating
expenses
|
529,985
|
|
250,112
|
|
251,613
|
Operating
loss
|
(294,001)
|
|
(69,701)
|
|
(8,976)
|
Other income
(expense)
|
|
|
|
|
|
Interest
income
|
27
|
|
26
|
|
17
|
Interest
expense(1)
|
(14,381)
|
|
(21,103)
|
|
(22,609)
|
Other income
(expense), net
|
234
|
|
(1,690)
|
|
(5,324)
|
Net loss from
continuing operations before income taxes
|
(308,121)
|
|
(92,468)
|
|
(36,892)
|
Benefit (provision)
for income taxes
|
7,827
|
|
(4,177)
|
|
11,640
|
Net loss from
continuing operations
|
(300,294)
|
|
(96,645)
|
|
(25,252)
|
Discontinued
Operations(2)
|
|
|
|
|
|
Net income (loss)
from discontinued operations before income taxes
|
3,050,811
|
|
(684,660)
|
|
261,451
|
Provision for income
taxes
|
(66,458)
|
|
(146,419)
|
|
(83,046)
|
Net income (loss)
from discontinued operations
|
2,984,353
|
|
(831,079)
|
|
178,405
|
Net income
(loss)
|
2,684,059
|
|
(927,724)
|
|
153,153
|
|
|
|
|
|
|
Net loss from
continuing operations
|
(300,294)
|
|
(96,645)
|
|
(25,252)
|
Less: net income
(loss) attributable to noncontrolling interest
|
191
|
|
137
|
|
(246)
|
Net loss from
continuing operations attributable to MIH
|
(300,485)
|
|
(96,782)
|
|
(25,006)
|
Net income (loss)
from discontinued operations
|
2,984,353
|
|
(831,079)
|
|
178,405
|
Less: net loss
attributable to noncontrolling interests
|
—
|
|
—
|
|
(3,109)
|
Net income (loss)
from discontinued operations attributable to MIH
|
2,984,353
|
|
(831,079)
|
|
181,514
|
Net income (loss)
attributable to MIH
|
$
2,683,868
|
|
$
(927,861)
|
|
$
156,508
|
|
|
|
|
|
|
Basic loss per unit
from continuing operations attributable to MIH
|
$
(3.42)
|
|
$
(1.11)
|
|
$
(0.29)
|
Basic income (loss)
per unit from discontinued operations attributable to
MIH
|
33.99
|
|
(9.56)
|
|
2.11
|
Basic income (loss)
per unit attributable to MIH
|
$
30.57
|
|
$
(10.67)
|
|
$
1.82
|
Weighted average
number of units outstanding: basic
|
87,791,951
|
|
86,951,642
|
|
86,178,212
|
|
|
|
|
|
|
Diluted loss per unit
from continuing operations attributable to MIH
|
$
(3.42)
|
|
$
(1.11)
|
|
$
(0.29)
|
Diluted income
(loss) per unit from discontinued operations attributable to
MIH
|
33.99
|
|
(9.56)
|
|
2.11
|
Diluted income (loss)
per unit attributable to MIH
|
$
30.57
|
|
$
(10.67)
|
|
$
1.82
|
Weighted average
number of units outstanding: diluted
|
87,791,951
|
|
86,951,642
|
|
86,178,212
|
Cash distribution
declared per unit
|
$
37.386817
|
|
$
11.00
|
|
$
4.00
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest expense
includes non-cash gains on derivative instruments of $333,000 in
2021 and non-cash losses on derivative instruments of $912,000
and $875,000 in 2020 and 2019, respectively.
|
|
|
(2)
|
See Note 4,
"Discontinued Operations and Dispositions", in our Notes to
Consolidated Financial Statements in Part II, Item 8, of Form 10-K
for the year ended December 31, 2021, for further discussions on
businesses classified as held for sale.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS
($ in
Thousands)
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
|
Net loss from
continuing operations
|
$
(300,294)
|
|
$
(96,645)
|
|
$
(25,252)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities from
continuing operations:
|
|
|
|
|
|
Depreciation
|
15,313
|
|
15,463
|
|
14,985
|
Amortization of
intangibles
|
425
|
|
425
|
|
425
|
Write-off of debt
financing costs
|
4,170
|
|
—
|
|
—
|
Amortization of debt
discount and financing costs
|
738
|
|
5,744
|
|
5,626
|
Adjustments to
derivative instruments
|
(943)
|
|
(6,598)
|
|
6,009
|
Fees to Manager -
related party
|
21,857
|
|
21,063
|
|
32,103
|
Deferred
taxes
|
(2,612)
|
|
3,376
|
|
(15,169)
|
Other non-cash
expense, net
|
4,887
|
|
6,634
|
|
9,947
|
Changes in other
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
(4,741)
|
|
2,529
|
|
3,694
|
Inventories
|
(3,489)
|
|
1,764
|
|
(1,869)
|
Prepaid expenses and
other current assets
|
(1,704)
|
|
(168)
|
|
(280)
|
Accounts payable and
accrued expenses
|
(7,904)
|
|
2,492
|
|
4,746
|
Income taxes
payable
|
(6,611)
|
|
(3,842)
|
|
440
|
Other, net
|
(7,279)
|
|
1,405
|
|
(4,235)
|
Net cash (used in)
provided by operating activities from continuing
operations
|
(288,187)
|
|
(46,358)
|
|
31,170
|
Investing
activities
|
|
|
|
|
|
Acquisitions of
businesses and investments, net of cash, cash equivalents, and
restricted cash
acquired
|
—
|
|
—
|
|
(94)
|
Purchases of property
and equipment
|
(14,261)
|
|
(14,471)
|
|
(19,791)
|
Other, net
|
186
|
|
44
|
|
34
|
Net cash used in
investing activities from continuing operations
|
(14,075)
|
|
(14,427)
|
|
(19,851)
|
Financing
activities
|
|
|
|
|
|
Payment of long-term
debt
|
(496,629)
|
|
(1,260)
|
|
(727)
|
Distributions paid to
common unitholders
|
(4,258,401)
|
|
(86,742)
|
|
(344,689)
|
Distributions paid to
noncontrolling interest
|
(3)
|
|
(3)
|
|
(5)
|
Debt financing costs
paid
|
(293)
|
|
—
|
|
—
|
Net cash used in
financing activities from continuing operations
|
(4,755,326)
|
|
(88,005)
|
|
(345,421)
|
Net change in cash,
cash equivalents, and restricted cash from continuing
operations
|
(5,057,588)
|
|
(148,790)
|
|
(334,102)
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS – (continued)
($ in
Thousands)
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
Cash flows
provided by (used in) discontinued operations:
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
28,965
|
|
$
386,983
|
|
$
389,966
|
Net cash provided by
investing activities
|
3,242,836
|
|
1,253,261
|
|
10,797
|
Net cash used
in financing activities
|
(5,123)
|
|
(10,700)
|
|
(337,095)
|
Net cash provided by
discontinued operations
|
3,266,678
|
|
1,629,544
|
|
63,668
|
Effect of exchange
rate changes on cash and cash equivalents
|
—
|
|
(99)
|
|
255
|
Net change in cash,
cash equivalents, and restricted cash
|
(1,790,910)
|
|
1,480,655
|
|
(270,179)
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,839,220
|
|
358,565
|
|
628,744
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
48,310
|
|
$
1,839,220
|
|
$
358,565
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Accrued purchases of
property and equipment from continuing operations
|
$
614
|
|
$
761
|
|
$
1,074
|
Accrued purchases of
property and equipment from discontinued operations
|
4,201
|
|
28,081
|
|
30,853
|
Leased
assets obtained in exchange for new operating lease liabilities
from
continuing
operations
|
—
|
|
—
|
|
1,522
|
Leased
assets obtained in exchange for new operating lease liabilities
from
discontinued
operations
|
14,666
|
|
20,393
|
|
19,115
|
Cash distribution
declared, but not yet paid
|
—
|
|
960,981
|
|
—
|
Taxes received, net,
from continuing operations
|
(195)
|
|
—
|
|
(1,500)
|
Taxes paid
(received), net, from discontinued operations
|
143,906
|
|
(10,686)
|
|
66,056
|
Interest paid, net,
from continuing operations
|
13,688
|
|
14,699
|
|
15,132
|
Interest paid, net,
from discontinued operations
|
29,616
|
|
95,670
|
|
122,890
|
The following table provides
a reconciliation of cash, cash equivalents, and restricted cash
from both continuing and discontinued operations reported
within the consolidated balance sheets that is presented in the
consolidated statements of cash flows:
|
|
|
As of December
31,
|
|
2021
|
|
2020
|
|
2019
|
Cash and cash
equivalents
|
$
47,259
|
|
$
1,518,108
|
|
$
57,230
|
Restricted cash -
current
|
1,051
|
|
1,036
|
|
1,165
|
Cash, cash
equivalents, and restricted cash included in assets held for
sale(1)
|
—
|
|
320,076
|
|
300,170
|
Total of cash, cash
equivalents, and restricted cash shown in the consolidated
statements of cash flows
|
$
48,310
|
|
$
1,839,220
|
|
$
358,565
|
|
|
|
|
|
|
|
|
(1)
|
Represents cash, cash
equivalents, and restricted cash related to businesses classified
as held for sale. See Note 4, "Discontinued Operations
and Dispositions", in our Notes to Consolidated Financial
Statements in Part II, Item 8, of Form 10-K for the year ended
December 31, 2021, for further discussions.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
CONSOLIDATED
STATEMENTS OF OPERATIONS – MD&A
|
|
Quarter
Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
Year Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands,
Except Unit and Per Unit Data) (Unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
revenue
|
$
62,571
|
|
$
44,118
|
|
18,453
|
|
42
|
|
$
235,984
|
|
$
180,411
|
|
55,573
|
|
31
|
Total
revenue
|
62,571
|
|
44,118
|
|
18,453
|
|
42
|
|
235,984
|
|
180,411
|
|
55,573
|
|
31
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
sales
|
52,724
|
|
27,065
|
|
(25,659)
|
|
(95)
|
|
165,927
|
|
112,283
|
|
(53,644)
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
9,464
|
|
32,143
|
|
22,679
|
|
71
|
|
97,893
|
|
72,704
|
|
(25,189)
|
|
(35)
|
Disposition payment to
Manager
|
—
|
|
28,174
|
|
28,174
|
|
100
|
|
228,570
|
|
28,174
|
|
(200,396)
|
|
NM
|
Total Selling,
general and administrative
|
9,464
|
|
60,317
|
|
50,853
|
|
84
|
|
326,463
|
|
100,878
|
|
(225,585)
|
|
NM
|
Fees to Manager -
related party
|
1,056
|
|
4,903
|
|
3,847
|
|
78
|
|
21,857
|
|
21,063
|
|
(794)
|
|
(4)
|
Depreciation and
amortization
|
4,286
|
|
4,664
|
|
378
|
|
8
|
|
15,738
|
|
15,888
|
|
150
|
|
1
|
Total operating
expenses
|
67,530
|
|
96,949
|
|
29,419
|
|
30
|
|
529,985
|
|
250,112
|
|
(279,873)
|
|
(112)
|
Operating
loss
|
(4,959)
|
|
(52,831)
|
|
47,872
|
|
91
|
|
(294,001)
|
|
(69,701)
|
|
(224,300)
|
|
NM
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
5
|
|
4
|
|
1
|
|
25
|
|
27
|
|
26
|
|
1
|
|
4
|
Interest
expense(1)
|
(390)
|
|
(4,888)
|
|
4,498
|
|
92
|
|
(14,381)
|
|
(21,103)
|
|
6,722
|
|
32
|
Other income
(expense), net
|
472
|
|
(753)
|
|
1,225
|
|
163
|
|
234
|
|
(1,690)
|
|
1,924
|
|
114
|
Net loss from
continuing operations before
income taxes
|
(4,872)
|
|
(58,468)
|
|
53,596
|
|
92
|
|
(308,121)
|
|
(92,468)
|
|
(215,653)
|
|
NM
|
Benefit (provision)
for income taxes
|
1,039
|
|
(12,985)
|
|
14,024
|
|
108
|
|
7,827
|
|
(4,177)
|
|
12,004
|
|
NM
|
Net loss from
continuing operations
|
(3,833)
|
|
(71,453)
|
|
67,620
|
|
95
|
|
(300,294)
|
|
(96,645)
|
|
(203,649)
|
|
NM
|
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
from discontinued operations
before income taxes
|
(12,631)
|
|
3,839
|
|
(16,470)
|
|
NM
|
|
3,050,811
|
|
(684,660)
|
|
3,735,471
|
|
NM
|
Benefit (provision)
for income taxes
|
—
|
|
29,331
|
|
(29,331)
|
|
(100)
|
|
(66,458)
|
|
(146,419)
|
|
79,961
|
|
55
|
Net (loss) income
from discontinued operations
|
(12,631)
|
|
33,170
|
|
(45,801)
|
|
(138)
|
|
2,984,353
|
|
(831,079)
|
|
3,815,432
|
|
NM
|
Net (loss)
income
|
(16,464)
|
|
(38,283)
|
|
21,819
|
|
57
|
|
2,684,059
|
|
(927,724)
|
|
3,611,783
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
(3,833)
|
|
(71,453)
|
|
67,620
|
|
95
|
|
(300,294)
|
|
(96,645)
|
|
(203,649)
|
|
NM
|
Less: net income
(loss) attributable to
noncontrolling interests
|
24
|
|
(322)
|
|
(346)
|
|
(107)
|
|
191
|
|
137
|
|
(54)
|
|
(39)
|
Net loss from
continuing operations
attributable to MIH
|
(3,857)
|
|
(71,131)
|
|
67,274
|
|
95
|
|
(300,485)
|
|
(96,782)
|
|
(203,703)
|
|
NM
|
Net (loss) income
from discontinued operations
|
(12,631)
|
|
33,170
|
|
(45,801)
|
|
(138)
|
|
2,984,353
|
|
(831,079)
|
|
3,815,432
|
|
NM
|
Net (loss) income
from discontinued
operations attributable to
MIH
|
(12,631)
|
|
33,170
|
|
(45,801)
|
|
(138)
|
|
2,984,353
|
|
(831,079)
|
|
3,815,432
|
|
NM
|
Net (loss) income
attributable to MIH
|
$
(16,488)
|
|
$
(37,961)
|
|
21,473
|
|
57
|
|
$
2,683,868
|
|
$
(927,861)
|
|
3,611,729
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per unit
from continuing operations
attributable to MIH
|
$
(0.05)
|
|
$
(0.82)
|
|
0.77
|
|
94
|
|
$
(3.42)
|
|
$
(1.11)
|
|
(2.31)
|
|
NM
|
Basic (loss) income
per unit from discontinued
operations attributable to MIH
|
(0.14)
|
|
0.38
|
|
(0.52)
|
|
(137)
|
|
33.99
|
|
(9.56)
|
|
43.55
|
|
NM
|
Basic (loss) income
per unit attributable to MIH
|
$
(0.19)
|
|
$
(0.44)
|
|
0.25
|
|
57
|
|
$
30.57
|
|
$
(10.67)
|
|
41.24
|
|
NM
|
Weighted average
number of units outstanding:
basic
|
88,226,852
|
|
87,209,829
|
|
1,017,023
|
|
1
|
|
87,791,951
|
|
86,951,642
|
|
840,309
|
|
1
|
(1)
|
Interest expense
includes non-cash gains on derivative instruments of $120,000 and
$333,000 for the quarter and year December 31, 2021,
respectively,
compared with non-cash gains on derivative instruments of $51,000
and non-cash losses on derivative instruments of $912,000 for the
quarter and year
ended December 31, 2020, respectively.
|
MACQUARIE
INFRASTRUCTURE HOLDINGS, LLC
RECONCILIATION OF
CONSOLIDATED NET LOSS TO EBITDA EXCLUDING
NON-CASH ITEMS AND
A RECONCILIATION FROM CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
Quarter
Ended
December
31,
|
|
Change
Favorable/(Unfavorable)
|
|
Year
Ended
December
31,
|
|
Change
Favorable/(Unfavorable)
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
($ In Thousands)
(Unaudited)
|
Net loss from
continuing operations
|
$
(3,833)
|
|
$
(71,453)
|
|
|
|
|
|
$
(300,294)
|
|
$
(96,645)
|
|
|
|
|
Interest expense,
net(1)
|
385
|
|
4,884
|
|
|
|
|
|
14,354
|
|
21,077
|
|
|
|
|
Benefit (provision)
for income taxes
|
(1,039)
|
|
12,985
|
|
|
|
|
|
(7,827)
|
|
4,177
|
|
|
|
|
Depreciation and
amortization
|
4,286
|
|
4,664
|
|
|
|
|
|
15,738
|
|
15,888
|
|
|
|
|
Fees to Manager -
related party
|
1,056
|
|
4,903
|
|
|
|
|
|
21,857
|
|
21,063
|
|
|
|
|
Other non-cash
expense (income), net(2)
|
7,286
|
|
256
|
|
|
|
|
|
4,065
|
|
(1,063)
|
|
|
|
|
EBITDA excluding
non-cash items - continuing
operations
|
$
8,141
|
|
$
(43,761)
|
|
51,902
|
|
119
|
|
$
(252,107)
|
|
$
(35,503)
|
|
(216,604)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items - continuing
operations
|
$
8,141
|
|
$
(43,761)
|
|
|
|
|
|
$
(252,107)
|
|
$
(35,503)
|
|
|
|
|
Interest expense,
net(1)
|
(385)
|
|
(4,884)
|
|
|
|
|
|
(14,354)
|
|
(21,077)
|
|
|
|
|
Non-cash interest
(income) expense, net(1)
|
(89)
|
|
1,353
|
|
|
|
|
|
4,402
|
|
6,611
|
|
|
|
|
(Provision) benefit
for current income taxes(3)
|
(720)
|
|
(8,774)
|
|
|
|
|
|
5,215
|
|
(801)
|
|
|
|
|
Changes in working
capital
|
(2,935)
|
|
11,032
|
|
|
|
|
|
(31,343)
|
|
4,412
|
|
|
|
|
Cash provided by
(used in) operating activities -
continuing operations
|
4,012
|
|
(45,034)
|
|
|
|
|
|
(288,187)
|
|
(46,358)
|
|
|
|
|
Changes in working
capital
|
2,935
|
|
(11,032)
|
|
|
|
|
|
31,343
|
|
(4,412)
|
|
|
|
|
Maintenance capital
expenditures
|
(1,801)
|
|
(1,327)
|
|
|
|
|
|
(6,568)
|
|
(6,762)
|
|
|
|
|
Free cash flow -
continuing operations
|
$
5,146
|
|
$
(57,393)
|
|
62,539
|
|
109
|
|
$
(263,412)
|
|
$
(57,532)
|
|
(205,880)
|
|
NM
|
(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 year ended December 31, 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
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.
|
|
|
(3)
|
Current income taxes
in 2021 includes a $7.4 million benefit for income taxes that will
be utilized by discontinued operations as a result of the
reorganization.
|
View original
content:https://www.prnewswire.com/news-releases/mic-reports-fourth-quarter-and-full-year-2021-financial-and-operational-results-301487091.html
SOURCE Macquarie Infrastructure Holdings, LLC