NEW YORK, Oct. 31, 2018 /PRNewswire/ -- Macquarie
Infrastructure Corporation (NYSE: MIC) reported financial and
operational results for the third quarter of 2018 that were in line
with expectations.
Net income decreased 40.9% to $21.4
million from $36.2 million in
the third quarter of 2017 (the prior comparable period) primarily
due to a write-down of its investment in CPI, increased costs
related to acquisitions and higher interest expense, partially
offset by lower taxes and a reduction in management fees. For the
nine months ended September 30, 2018,
net income increased 10.1% to $104.5
million versus the comparable period in 2017.
Adjusted Proportionately Combined EBITDA excluding non-cash
items decreased by 5.1% to $175.5
million versus the prior comparable period reflecting
primarily a forecast reduction in earnings at IMTT. For the nine
months ended September 30, 2018,
Adjusted Proportionately Combined EBITDA excluding non-cash items
decreased by 3.0% to $525.0 million
versus the comparable period in 2017.
Cash generated by operating activities decreased versus the
prior comparable period to $147.1
million, with reduced earnings and higher interest expense
and taxes partially offset by favorable movements in working
capital.
Adjusted Free Cash Flow, which excludes certain one-time items
such as transaction related costs, was $127.5 million, down 11.7% from $144.4 million in the prior comparable period as
a result of increased interest expense, maintenance capital
expenditures and taxes. For the nine months ended September 30, 2018, Adjusted Free Cash Flow
decreased by 9.8% to $390.0 million
versus the comparable period in 2017.
The MIC board of directors authorized a cash dividend of
$1.00 per share, or $4.00 annualized, for the third quarter of 2018.
The dividend will be payable on November 15,
2018 to shareholders of record on November 12, 2018. The Company reaffirmed its
previous guidance for a distribution of $1.00 per share in each quarter of 2018.
The Company announced that Macquarie Infrastructure Management
(USA) Inc., the external manager
of MIC, has elected to waive certain fees to which it is entitled
under a Management Services Agreement with MIC. The Manager has
elected to waive base management fees in excess of 1% of MIC's
equity market capitalization, less cash on its balance sheet, and
any fees on holding company debt.
The waivers reduce the annualized base management fees payable
to the Manager by approximately $10.0
million compared with the fees payable for the third quarter
of 2018. The Manager is expected to continue to reinvest its
ongoing base management fees in new primary shares of the Company.
The waivers are effective November 1,
2018 and, although they can be revoked, MIC believes that
the Manager currently has no intention of doing so. The Manager is
required to provide one year notice of revocation. The waivers have
no impact on calculation of any performance fee to which the
Manager may be entitled in the future.
Christopher Frost, MIC's chief
executive officer, said of the Company's results for the quarter:
"Our operating companies continued to perform as anticipated and we
advanced a significant number of initiatives related to our
strategic priorities. We are particularly pleased with the
considerable progress being made on both the repurposing of storage
capacity and repositioning of IMTT as well as the continued
rationalization of our portfolio through sales of non-core
operations. In addition, the proceeds from the timely completion of
the sale of Bayonne Energy Center (BEC) have strengthened our
balance sheet and provided us with considerable financial
flexibility to support the ongoing growth of the enterprise."
"MIC's financial and operational performance also supported the
authorization of a dividend of $1.00
per share for the third quarter consistent with our guidance.
Assuming no material deterioration in the health of the economy,
and the continued stable performance of our businesses, we remain
confident in the sustainability of our dividend," added Frost.
Third Quarter and Year to Date Results, by Segment
- IMTT generated Adjusted Proportionately Combined EBITDA
excluding non-cash items of $69.3
million in the third quarter, down 12% versus the prior
comparable quarter, primarily due an anticipated decline in
capacity utilization and slightly lower average storage rates
driven by rate decreases for gasoline and distillates in New York
Harbor, compared with 2017. Bulk liquid storage utilization
declined to an average of 82.1% in the quarter, consistent with
prior guidance for a mid-80s percent average utilization rate in
2018, compared with 92.7% in the third quarter of 2017.
Storage utilization at IMTT is expected to remain in the low 80s
percent range through year-end 2018 before recovering to a low 90s
percent range by early 2020, subject to market conditions. The
contribution to EBITDA from the anticipated recovery in utilization
is expected to be partially offset by decreases in storage rates,
particularly those for gasoline and distillates in New York Harbor,
over the same period. Through the nine months ended September 30, 2018, EBITDA generated by IMTT
decreased to $221.5 million, down
9.4% versus the comparable period in 2017, as a result of lower
earnings stemming from contract non-renewals and lower deferred
revenue.
- Atlantic Aviation generated Adjusted Proportionately
Combined EBITDA excluding non-cash items of $65.0 million in the third quarter, up 2.3%
versus the prior comparable quarter, driven by contributions from
acquisitions of fixed base operations and increased hangar rental
income. The modest year over year increase reflects the absence of
a number of events that were beneficial to Atlantic Aviation's
results in 2017 as well as airport-led runway maintenance and
flight/landing restrictions at several of airports on which the
business operates in 2018. Through the nine months ended
September 30, 2018, Adjusted
Proportionately Combined EBITDA excluding non-cash items generated
by Atlantic Aviation increased to $196.2
million, up 5.6% compared with the same period in 2017.
- Contracted Power generated Adjusted Proportionately
Combined EBITDA excluding non-cash items of $37.4 million in the third quarter, up 14.0%
versus the prior comparable quarter, as a result of contributions
related to the expansion of the BEC power generation facility (BEC
II) and improved operating conditions for the Company's portfolio
of wind and solar power generation assets. Through the nine months
ended September 30,
2018, Adjusted Proportionately Combined EBITDA excluding
non-cash items generated by Contracted Power increased to
$91.5 million, up 18.7% compared with
the same period in 2017.
- MIC Hawaii generated EBITDA of $(5.1) million in the third quarter including
$17.1 million of write-downs related
to CPI and $12.0 million excluding
those write-downs. The segment results reflect higher expenses at
CPI and lower non-utility margins at Hawaii Gas partially offset by
increased utility margins at Hawaii Gas as a result of a rate
increase authorized under an interim Decision and Order from the
Hawaii Public Utilities Commission in June. Through the nine months
ended September 30, 2018, EBITDA
generated by MIC Hawaii was $21.2
million and $38.3 million
including and excluding the impact of the write-downs,
respectively.
MIC has entered into an agreement to sell CPI for a nominal amount
in a transaction that is expected to close in the fourth quarter of
2018.
- The Company's Corporate and Other segment includes primarily
fees payable to the MIC's Manager, professional fees and costs
associated with being a public company. The segment
generated Adjusted Proportionately Combined EBITDA excluding
non-cash items of $(6.9) million,
compared with $(6.0) million in the
prior comparable quarter, primarily as a result of higher
professional fees. Through the nine months ended September 30, 2018, Adjusted Proportionately
Combined EBITDA excluding non-cash items generated by the Corporate
and Other segment was flat with the same period in 2017.
Strategic Initiatives
Sale of Bayonne Energy
Center
- Successful closing of the sale of BEC on October 12, 2018
- Receipt of $657.4 million in
cash, transfer of $243.5 million of
BEC debt to purchaser
- Net proceeds after transaction related expenses used to repay
the majority of outstanding balances on all revolving credit
facilities
- Other than $150.0 million paid
down at IMTT, revolving credit facilities may be redrawn to fund
growth capital agenda
- Sale and debt repayment substantially improves balance sheet
strength and financial flexibility
Repurposing of Existing Capacity at IMTT
- Repurposing up to 3.0 million barrels of storage capacity on
the Lower Mississippi River
- Converting capacity away heavy and residual oil to gasoline and
distillates, chemicals and vegetable and/or tropical oils
- Approximately 1.3 million barrels of storage capacity being
repurposed in 2018
- 600,000 repurposed barrels expected to be in service prior to
year-end
Repositioning of IMTT with Additional Capacity and
Capability
- Expect to deploy approximately $15.0
million in 2018 on projects that will add new storage
capacity and/or improve terminal capability
- Expected to invest approximately $80.0
million in the additional capacity, dock and new truck rack
capability
-
- Pending a final investment decision by Methanex on the
development of additional methanol production capability (expected
mid-2019), IMTT will construct 714,000 barrels of storage capacity
at its Geismar Chemical Logistics facility for Methanex
- Committed to construction of an additional dock at its terminal
in Geismar, LA to be in service in
late 2019 supporting existing operations and potential expansion
opportunities
- Committed to the construction of an automated, multi-user, six
bay truck loading facility for petroleum and biodiesel products at
its terminal in Bayonne, NJ to be
in service in late 2019
Portfolio and Capital Management
- MIC expects to deploy approximately $200.0 million in 2018 on growth projects and
"bolt-on" acquisitions and has deployed, or committed to deploy,
approximately $130.0 million to
date:
-
- acquisition of a fixed base operation by Atlantic Aviation
- completion of additional thermal power generating capacity at
BEC
- development of additional capacity and capability at IMTT
- MIC has exited certain smaller, non-core businesses in 2018 and
has launched a process to sell the majority of its operating wind
and solar facilities
-
- Sale and redeployment of proceeds from wind and solar
facilities expected to maximize value relative to expanding
portfolio through acquisition
- Company expects to retain its solar facility in Hawaii and to maintain existing relationships
with developers of renewable power projects
- Sale process expected to conclude in the second quarter in
2019
- Including BEC, MIC has exited businesses and terminated
projects that have generated more than $700
million in cash proceeds and deconsolidated $243.5 million of debt
-
- Transactions consistent with strategic priority of
rationalizing portfolio, strengthening balance sheet and increasing
financial flexibility
Segment EBITDA Guidance
MIC adjusted its guidance for
the generation of Adjusted Proportionately Combined EBITDA
excluding non-cash items in 2018 following the July 29 announcement of the sale of BEC and the
expected early fourth quarter closing of the sale. Segment
level Adjusted Proportionately Combined EBITDA excluding
non-cash items guidance has been further refined to account for
sales of other businesses and the receipt of the Company's share of
development profits related to a renewable power project.
MIC's guidance for full-year Adjusted Proportionately
Combined EBITDA excluding non-cash items from each of its IMTT,
Atlantic Aviation and Corporate/Other segments is unchanged from
the second quarter. MIC now expects the Adjusted
Proportionately Combined EBITDA excluding non-cash items
contribution from Contracted Power for the full year 2018 to
increase to between $85.0 and
$95.0 million from between
$80.0 million and $90.0 million.
MIC Hawaii is expected to generate EBITDA of between
$38.0 and $48.0 million including the impact of the
write-down of the Company's investment in CPI. Excluding the impact
of the write-down, EBITDA is expected to be in a range of between
$55.0 and $60.0 million.
MIC continues to expect that its businesses will generate
aggregate Adjusted Proportionately Combined EBITDA excluding
non-cash items for the full year 2018 of between $670.0 and $705.0
million.
IMTT:
|
|
$
|
285 – $295
million
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|
Atlantic
Aviation:
|
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$
|
265 – $275
million
|
|
Contracted
Power:
|
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$
|
85 – $95
million
|
|
MIC Hawaii, including
negative cont. from CPI:
|
|
$
|
55 – $60
million
|
|
Corporate/Other:
|
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$
|
(20) – $(20) million
|
|
Summary Financial
Information
|
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Quarter Ended
September 30,
|
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Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
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$
|
|
%
|
|
|
($ In Thousands,
Except Share and Per Share Data) (Unaudited)
|
GAAP
Metrics
|
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|
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|
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|
|
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|
|
|
|
|
Net income
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|
$
|
21,376
|
|
|
$
|
36,173
|
|
|
|
(14,797)
|
|
|
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(40.9)
|
|
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$
|
104,450
|
|
|
$
|
94,836
|
|
|
|
9,614
|
|
|
|
10.1
|
|
Weighted average
number of shares outstanding: basic
|
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|
85,378,088
|
|
|
|
83,644,806
|
|
|
|
1,733,282
|
|
|
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2.1
|
|
|
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85,095,956
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|
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82,743,285
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|
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2,352,671
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2.8
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Net income per share
attributable to MIC
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$
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0.25
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$
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0.48
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|
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(0.23)
|
|
|
|
(47.9)
|
|
|
$
|
1.61
|
|
|
$
|
1.23
|
|
|
|
0.38
|
|
|
|
30.9
|
|
Cash provided by
operating activities(1)
|
|
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147,051
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149,723
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(2,672)
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(1.8)
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413,053
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398,360
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14,693
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3.7
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MIC Non-GAAP
Metrics
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|
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EBITDA excluding
non-cash items(2)
|
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$
|
159,796
|
|
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$
|
182,684
|
|
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(22,888)
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(12.5)
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$
|
509,650
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|
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$
|
533,923
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(24,273)
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(4.5)
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Shared service
implementation costs(3)
|
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—
|
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1,402
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(1,402)
|
|
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(100.0)
|
|
|
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—
|
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6,847
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(6,847)
|
|
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(100.0)
|
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CPI investment
adjustment(3)
|
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17,083
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—
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17,083
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NM
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17,083
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|
|
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—
|
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17,083
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|
|
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NM
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|
Investment and
acquisition/disposition costs(3)
|
|
|
1,878
|
|
|
|
3,023
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|
|
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(1,145)
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(37.9)
|
|
|
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7,473
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|
|
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7,873
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(400)
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(5.1)
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Adjusted EBITDA
excluding
non-cash items(3)
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$
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178,757
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$
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187,109
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(8,352)
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(4.5)
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$
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534,206
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|
|
$
|
548,643
|
|
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(14,437)
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|
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(2.6)
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Cash
interest(4)
|
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$
|
(32,456)
|
|
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$
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(27,151)
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|
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(5,305)
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(19.5)
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$
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(94,058)
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$
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(79,435)
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(14,623)
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(18.4)
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Cash taxes
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(3,076)
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(2,154)
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(922)
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(42.8)
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|
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(10,659)
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(8,493)
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(2,166)
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(25.5)
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Maintenance capital
expenditures
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(13,372)
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(12,106)
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(1,266)
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(10.5)
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(32,724)
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(23,062)
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(9,662)
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(41.9)
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Noncontrolling
interest(5)
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(2,394)
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|
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(1,308)
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|
|
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(1,086)
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(83.0)
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|
|
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(6,773)
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(5,223)
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|
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(1,550)
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|
(29.7)
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Adjusted Free Cash
Flow(3)
|
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$
|
127,459
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|
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$
|
144,390
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|
|
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(16,931)
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|
|
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(11.7)
|
|
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$
|
389,992
|
|
|
$
|
432,430
|
|
|
|
(42,438)
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|
|
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(9.8)
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|
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NM — Not
meaningful.
|
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(1) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash. See
Note 2, "Basis of Presentation", in our Notes to Consolidated
Condensed Financial Statements in Part I of Form 10-Q for the
quarter ended September 30, 2018.
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(2) EBITDA excluding
non-cash items is calculated as net income before interest expense,
taxes, depreciation and amortization expense, management fees,
pension expense and other non-cash (income) expense recorded in the
consolidated statement of operations. See below for reconciliation
of net income (loss) to EBITDA excluding non-cash items.
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(3) Adjusted EBITDA
excluding non-cash items and Adjusted Free Cash Flow excludes costs
relating to certain investment and acquisition/disposition
activities during 2018 and 2017. Adjusted EBITDA excluding non-cash
item and Adjusted Free Cash Flow excludes the write-down of our
investment in CPI for 2018, and excludes implementation costs
relating to our shared services center for 2017.
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(4) Cash interest is
calculated as interest expense, net, excluding the impact of
non-cash adjustments for unrealized (gains) losses from derivative
instruments, amortization of deferred financing costs and the
amortization of debt discount recorded in the consolidated
statement of operations.
|
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(5) Noncontrolling
interest adjustment represents the portion of Free Cash Flow not
attributable to MIC's ownership interest.
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Conference Call and Webcast
When: MIC has scheduled a
conference call for 8:00 a.m. Eastern Time
on Thursday, November 1, 2018 during which management will
review and comment on the third quarter 2018 results.
How: To listen to the conference call dial +1(650) 521-5252 or
+1(877) 852-2928 at least 10 minutes prior to the scheduled start
time. A webcast of the call will be accessible via the Company's
website at. Allow extra time prior to the call to visit the site
and download the software needed to listen to the webcast.
Supplemental Materials: MIC will prepare materials in support of
its conference call. The materials will be available for
downloading from the Company's website prior to the call.
Replay: For interested individuals unable to participate in the
live conference call, a replay will be available after 2:00 p.m. on November 1,
2018 through midnight on November 7,
2018, at +1(404) 537-3406 or +1(855) 859-2056, Passcode:
3055347. An online archive of the webcast will be available on the
Company's website for one year following the call.
About MIC
MIC owns and operates a diversified group
of businesses providing basic services to customers in the United States. Its businesses consist of a
bulk liquid terminals business, International-Matex Tank Terminals;
an airport services business, Atlantic Aviation; entities
comprising an energy services, production and distribution segment,
MIC Hawaii; and entities comprising a Contracted Power segment. For
additional information, please visit the MIC website at
www.macquarie.com/mic. MIC-G
Use of Non-GAAP Measures
Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA) excluding non-cash
items, Free Cash Flow and Proportionately Combined Metrics
In addition to MIC's results under U.S. GAAP, the Company uses
certain non-GAAP measures to assess the performance and prospects
of its businesses. In particular, MIC uses EBITDA excluding
non-cash items, Free Cash Flow and certain proportionately combined
financial metrics. Proportionately combined financial metrics,
including Free Cash Flow, reflect MIC's proportionate interest in
its wind and solar facilities.
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 as a measure 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.
EBITDA excluding non-cash items also excludes base management fees
and performance fees, if any, whether paid in cash or stock.
Given MIC's varied ownership levels in its CP and MIC Hawaii
segments, together with obligations to report the results of these
businesses on a consolidated basis, GAAP measures such as net
income (loss) do not fully reflect all of the items management
considers in assessing the amount of cash generated based on its
ownership interest in its businesses. The Company notes that the
proportionately combined metrics used may be calculated in a
different manner by other companies and may limit their usefulness
as a comparative measure. Therefore, proportionately combined
metrics should be used as a supplemental measure to help understand
MIC's financial performance and not in lieu of financial results
reported under GAAP.
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 — which includes cash interest, tax payments
and pension contributions, less maintenance capital expenditures,
which includes principal repayments on capital lease obligations
used to fund maintenance capital expenditures, and excludes changes
in working capital.
Management uses Free Cash Flow as a measure of its ability to
provide investors with an attractive risk-adjusted return by
sustaining and potentially increasing MIC's quarterly cash dividend
and funding a portion of the Company's growth. GAAP metrics such as
net income (loss) do not provide MIC management with the same level
of visibility to 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 unrealized gains or losses on derivative instruments;
(v) amortization of tolling liabilities; (vi) gains (losses) on
disposal of assets, 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 to 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 both to assess the Company's performance and as
an indicator of its success in generating an attractive
risk-adjusted return.
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. 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 tables below for a reconciliation of EBITDA excluding
non-cash items and EBITDA excluding non-cash items, to Net Income
(loss) and a reconciliation of Free Cash Flow to cash from
operating activities.
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 a number of factors in determining whether a specific
capital expenditure will be classified as maintenance or
growth.
In some cases, specific capital expenditures contain
characteristics of both maintenance and growth capital
expenditures. 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.
Forward-Looking Statements
This press release
contains forward-looking statements. MIC may, in some cases, use
words such as "project", "believe", "anticipate", "plan", "expect",
"estimate", "intend", "should", "would", "could", "potentially", or
"may" or other words that convey uncertainty of future events or
outcomes to identify these forward-looking statements.
Forward-looking statements in this release are subject to a number
of risks and uncertainties, some of which are beyond MIC's control
including, among other things: changes in general economic or
business conditions; its ability to service, comply with the terms
of and refinance debt, successfully integrate and manage acquired
businesses, retain or replace qualified employees, manage growth,
make and finance future acquisitions, and implement its strategy;
risks associated with development, investment and expansion in the
power industry; its regulatory environment establishing rate
structures and monitoring quality of service; demographic trends,
the political environment, the economy, tourism, construction and
transportation costs, air travel, environmental costs and risks;
fuel and gas and other commodity costs; its ability to recover
increases in costs from customers, cybersecurity risks, work
interruptions or other labor stoppages; risks associated with
acquisitions or dispositions, litigation risks; risks related to
its shared services initiative; reliance on sole or limited source
suppliers, risks or conflicts of interests involving its
relationship with the Macquarie Group and changes in U.S. federal
tax law.
MIC's actual results, performance, prospects or opportunities
could differ materially from those expressed in or implied by the
forward-looking statements. Additional risks of which MIC is not
currently aware could also cause its actual results to differ. In
light of these risks, uncertainties and assumptions, you should not
place undue reliance on any forward-looking statements. The
forward-looking events discussed in this release may not occur.
These forward-looking statements are made as of the date of this
release. MIC undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
MIC is not an authorized deposit-taking institution for the
purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not
represent deposits or other liabilities of Macquarie Bank Limited
ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise
provide assurance in respect of the obligations of
MIC.
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
($ in Thousands,
Except Share Data)
|
|
|
|
|
|
|
|
September 30,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
50,162
|
|
|
$
|
47,121
|
|
Restricted
cash
|
|
|
41,238
|
|
|
|
24,963
|
|
Accounts receivable,
less allowance for doubtful accounts of $1,114 and $895,
respectively
|
|
|
130,777
|
|
|
|
158,152
|
|
Inventories
|
|
|
30,807
|
|
|
|
36,955
|
|
Prepaid
expenses
|
|
|
9,329
|
|
|
|
14,685
|
|
Fair value of
derivative instruments
|
|
|
17,510
|
|
|
|
11,965
|
|
Other current
assets
|
|
|
13,040
|
|
|
|
13,804
|
|
Assets held for
sale(1)
|
|
|
971,934
|
|
|
|
—
|
|
Total current
assets
|
|
|
1,264,797
|
|
|
|
307,645
|
|
Property, equipment,
land and leasehold improvements, net
|
|
|
3,753,291
|
|
|
|
4,659,614
|
|
Investment in
unconsolidated business
|
|
|
9,296
|
|
|
|
9,526
|
|
Goodwill
|
|
|
2,043,800
|
|
|
|
2,068,668
|
|
Intangible assets,
net
|
|
|
813,348
|
|
|
|
914,098
|
|
Fair value of
derivative instruments
|
|
|
26,958
|
|
|
|
24,455
|
|
Other noncurrent
assets
|
|
|
26,980
|
|
|
|
24,945
|
|
Total
assets
|
|
$
|
7,938,470
|
|
|
$
|
8,008,951
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Due to
Manager-related party
|
|
$
|
4,474
|
|
|
$
|
5,577
|
|
Accounts
payable
|
|
|
54,628
|
|
|
|
60,585
|
|
Accrued
expenses
|
|
|
83,424
|
|
|
|
89,496
|
|
Current portion of
long-term debt
|
|
|
392,903
|
|
|
|
50,835
|
|
Fair value of
derivative instruments
|
|
|
534
|
|
|
|
1,710
|
|
Other current
liabilities
|
|
|
52,089
|
|
|
|
47,762
|
|
Liabilities held for
sale(1)
|
|
|
299,659
|
|
|
|
—
|
|
Total current
liabilities
|
|
|
887,711
|
|
|
|
255,965
|
|
Long-term debt, net
of current portion
|
|
|
3,009,008
|
|
|
|
3,530,311
|
|
Deferred income
taxes
|
|
|
656,708
|
|
|
|
632,070
|
|
Fair value of
derivative instruments
|
|
|
1,174
|
|
|
|
4,668
|
|
Tolling
agreements – noncurrent
|
|
|
—
|
|
|
|
52,595
|
|
Other noncurrent
liabilities
|
|
|
187,957
|
|
|
|
182,639
|
|
Total
liabilities
|
|
|
4,742,558
|
|
|
|
4,658,248
|
|
Commitments and
contingencies
|
|
|
—
|
|
|
|
—
|
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED BALANCE SHEETS – (continued)
|
($ in Thousands,
Except Share Data)
|
|
|
|
|
|
|
|
September 30,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
Stockholders'
equity(2):
|
|
|
|
|
|
|
|
|
Common stock ($0.001
par value; 500,000,000 authorized; 85,550,576 shares issued and
outstanding at September 30, 2018 and 84,733,957 shares issued and
outstanding at December 31, 2017)
|
|
$
|
86
|
|
|
$
|
85
|
|
Additional paid in
capital
|
|
|
1,585,328
|
|
|
|
1,840,033
|
|
Accumulated other comprehensive loss
|
|
|
(32,085)
|
|
|
|
(29,993)
|
|
Retained
earnings
|
|
|
1,480,471
|
|
|
|
1,343,567
|
|
Total stockholders'
equity
|
|
|
3,033,800
|
|
|
|
3,153,692
|
|
Noncontrolling
interests
|
|
|
162,112
|
|
|
|
197,011
|
|
Total
equity
|
|
|
3,195,912
|
|
|
|
3,350,703
|
|
Total liabilities and
equity
|
|
$
|
7,938,470
|
|
|
$
|
8,008,951
|
|
|
(1) See Note 2,
"Basis of Presentation", for further discussion on assets and
liabilities held for sale.
|
|
(2) The Company is
authorized to issue 100,000,000 shares of preferred stock, par
value $0.001 per share. At September 30, 2018 and December 31,
2017, no preferred stock were issued or outstanding. The Company
had 100 shares of special stock issued and outstanding to its
Manager at September 30, 2018 and December 31, 2017.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
($ in Thousands,
Except Share and Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
361,031
|
|
|
$
|
358,220
|
|
|
$
|
1,139,637
|
|
|
$
|
1,067,069
|
|
Product
revenue
|
|
|
112,249
|
|
|
|
94,841
|
|
|
|
313,279
|
|
|
|
276,439
|
|
Total
revenue
|
|
|
473,280
|
|
|
|
453,061
|
|
|
|
1,452,916
|
|
|
|
1,343,508
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
166,694
|
|
|
|
153,218
|
|
|
|
533,889
|
|
|
|
455,038
|
|
Cost of product
sales
|
|
|
47,823
|
|
|
|
35,669
|
|
|
|
148,372
|
|
|
|
123,143
|
|
Selling, general and
administrative
|
|
|
86,487
|
|
|
|
84,898
|
|
|
|
262,371
|
|
|
|
244,817
|
|
Fees to
Manager-related party
|
|
|
12,333
|
|
|
|
17,954
|
|
|
|
36,113
|
|
|
|
54,610
|
|
Goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
|
|
3,215
|
|
|
|
—
|
|
Depreciation
|
|
|
56,924
|
|
|
|
58,009
|
|
|
|
179,368
|
|
|
|
172,753
|
|
Amortization of
intangibles
|
|
|
20,030
|
|
|
|
17,329
|
|
|
|
55,470
|
|
|
|
50,920
|
|
Total operating
expenses
|
|
|
393,506
|
|
|
|
367,077
|
|
|
|
1,218,798
|
|
|
|
1,101,281
|
|
Operating
income
|
|
|
79,774
|
|
|
|
85,984
|
|
|
|
234,118
|
|
|
|
242,227
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
113
|
|
|
|
54
|
|
|
|
304
|
|
|
|
129
|
|
Interest
expense(1)
|
|
|
(32,616)
|
|
|
|
(29,291)
|
|
|
|
(81,693)
|
|
|
|
(90,129)
|
|
Other (expense)
income, net
|
|
|
(18,011)
|
|
|
|
4,973
|
|
|
|
(11,721)
|
|
|
|
7,893
|
|
Net income before
income taxes
|
|
|
29,260
|
|
|
|
61,720
|
|
|
|
141,008
|
|
|
|
160,120
|
|
Provision for income
taxes
|
|
|
(7,884)
|
|
|
|
(25,547)
|
|
|
|
(36,558)
|
|
|
|
(65,284)
|
|
Net income
|
|
$
|
21,376
|
|
|
$
|
36,173
|
|
|
$
|
104,450
|
|
|
$
|
94,836
|
|
Less: net loss
attributable to noncontrolling interests
|
|
|
(328)
|
|
|
|
(3,922)
|
|
|
|
(32,454)
|
|
|
|
(7,294)
|
|
Net income
attributable to MIC
|
|
$
|
21,704
|
|
|
$
|
40,095
|
|
|
$
|
136,904
|
|
|
$
|
102,130
|
|
Basic income per
share attributable to MIC
|
|
$
|
0.25
|
|
|
$
|
0.48
|
|
|
$
|
1.61
|
|
|
$
|
1.23
|
|
Weighted average
number of shares outstanding: basic
|
|
|
85,378,088
|
|
|
|
83,644,806
|
|
|
|
85,095,956
|
|
|
|
82,743,285
|
|
Diluted income per
share attributable to MIC
|
|
$
|
0.25
|
|
|
$
|
0.48
|
|
|
$
|
1.61
|
|
|
$
|
1.23
|
|
Weighted average
number of shares outstanding: diluted
|
|
|
85,398,566
|
|
|
|
87,916,538
|
|
|
|
85,109,213
|
|
|
|
82,752,800
|
|
Cash dividends
declared per share
|
|
$
|
1.00
|
|
|
$
|
1.42
|
|
|
$
|
3.00
|
|
|
$
|
4.12
|
|
|
(1) Interest expense
includes gains on derivative instruments of $4.8 million and $25.8
million for the quarter and nine months ended September 30, 2018,
respectively. For the quarter and nine months ended September 30,
2017, interest expense includes losses on derivative instruments of
$162,000 and $6.9 million, respectively.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
($ in
Thousands)
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
2018
|
|
2017(1)
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
104,450
|
|
|
$
|
94,836
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Non-cash goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
Depreciation and
amortization of property and equipment
|
|
|
179,368
|
|
|
|
172,753
|
|
Amortization of
intangible assets
|
|
|
55,470
|
|
|
|
50,920
|
|
Amortization of debt
financing costs
|
|
|
7,430
|
|
|
|
6,464
|
|
Amortization of debt
discount
|
|
|
2,710
|
|
|
|
2,377
|
|
Adjustments to
derivative instruments
|
|
|
(19,782)
|
|
|
|
3,414
|
|
Fees to
Manager-related party
|
|
|
36,113
|
|
|
|
54,610
|
|
Deferred
taxes
|
|
|
25,899
|
|
|
|
56,791
|
|
Pension
expense
|
|
|
6,284
|
|
|
|
6,481
|
|
Other non-cash
expense (income), net(2)
|
|
|
14,359
|
|
|
|
(2,651)
|
|
Changes in other
assets and liabilities, net of
acquisitions/dispositions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
6,200
|
|
|
|
(18,938)
|
|
Inventories
|
|
|
(2,003)
|
|
|
|
(4,563)
|
|
Prepaid expenses and
other current assets
|
|
|
2,605
|
|
|
|
(7,040)
|
|
Due to
Manager-related party
|
|
|
155
|
|
|
|
(178)
|
|
Accounts payable and
accrued expenses
|
|
|
4,896
|
|
|
|
(4,444)
|
|
Income taxes
payable
|
|
|
654
|
|
|
|
(1,223)
|
|
Other, net
|
|
|
(14,970)
|
|
|
|
(11,249)
|
|
Net cash provided by
operating activities
|
|
|
413,053
|
|
|
|
398,360
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Acquisitions of
businesses and investments, net of cash acquired
|
|
|
(12,515)
|
|
|
|
(208,377)
|
|
Purchases of property
and equipment
|
|
|
(159,037)
|
|
|
|
(234,833)
|
|
Loan to project
developer
|
|
|
(17,800)
|
|
|
|
(18,675)
|
|
Loan repayment from
project developer
|
|
|
16,561
|
|
|
|
6,604
|
|
Proceeds from sale of
business, net of cash divested
|
|
|
41,038
|
|
|
|
—
|
|
Other, net
|
|
|
467
|
|
|
|
179
|
|
Net cash used in
investing activities
|
|
|
(131,286)
|
|
|
|
(455,102)
|
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH
FLOWS – (continued)
|
(Unaudited)
|
($ in
Thousands)
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
2018
|
|
2017(1)
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
$
|
275,500
|
|
|
$
|
585,500
|
|
Payment of long-term
debt
|
|
|
(223,529)
|
|
|
|
(200,722)
|
|
Proceeds from the
issuance of shares
|
|
|
—
|
|
|
|
5,699
|
|
Dividends paid to
common stockholders
|
|
|
(292,715)
|
|
|
|
(332,867)
|
|
Contributions
received from noncontrolling interests
|
|
|
567
|
|
|
|
102
|
|
Distributions paid to
noncontrolling interests
|
|
|
(3,028)
|
|
|
|
(2,962)
|
|
Offering and equity
raise costs paid
|
|
|
(35)
|
|
|
|
(355)
|
|
Debt financing costs
paid
|
|
|
(2,874)
|
|
|
|
(447)
|
|
Payment of capital
lease obligations
|
|
|
(87)
|
|
|
|
(366)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(246,201)
|
|
|
|
53,582
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(442)
|
|
|
|
449
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
|
35,124
|
|
|
|
(2,711)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
72,084
|
|
|
|
61,257
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
107,208
|
|
|
$
|
58,546
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Accrued equity
offering costs
|
|
$
|
83
|
|
|
$
|
97
|
|
Accrued financing
costs
|
|
$
|
—
|
|
|
$
|
21
|
|
Accrued purchases of
property and equipment
|
|
$
|
23,801
|
|
|
$
|
33,184
|
|
Issuance of shares to
Manager
|
|
$
|
37,372
|
|
|
$
|
54,927
|
|
Issuance of shares to
independent directors
|
|
$
|
750
|
|
|
$
|
681
|
|
Issuance of shares
for acquisition of business
|
|
$
|
—
|
|
|
$
|
125,000
|
|
Conversion of
convertible senior notes to shares
|
|
$
|
6
|
|
|
$
|
17
|
|
Distributions payable
to noncontrolling interests
|
|
$
|
5
|
|
|
$
|
32
|
|
Taxes paid,
net
|
|
$
|
10,991
|
|
|
$
|
9,810
|
|
Interest
paid
|
|
$
|
91,200
|
|
|
$
|
82,108
|
|
|
(1) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flow (Topic 230): Restricted Cash. See Note 2,
"Basis of Presentation", in our Notes to Consolidated Condensed
Financial Statements in Part I of Form 10-Q for the quarter ended
September 30, 2018.
|
|
(2) Other non-cash
expense (income), net, includes the write-down of the Company's
investment in the design-build mechanical contractor business for
the nine months ended September 30, 2018.
|
The following table provides a reconciliation of cash, cash
equivalents and restricted cash reported within the consolidated
condensed balance sheets that sum to the total of the same amounts
presented in the consolidated condensed statements of cash
flows:
|
|
|
|
|
|
|
As of September
30,
|
|
|
2018
|
|
2017
|
Cash and cash
equivalents
|
|
$
|
50,162
|
|
|
$
|
35,737
|
|
Restricted
cash – current
|
|
|
41,238
|
|
|
|
22,809
|
|
Restricted cash held
for sale(3)
|
|
|
15,808
|
|
|
|
—
|
|
Total of cash, cash
equivalents and restricted cash shown in the consolidated condensed
statement of cash flows
|
|
$
|
107,208
|
|
|
$
|
58,546
|
|
|
(3) Represents
restricted cash related to BEC, which were classified as held for
sale at September 30, 2018. See Note 2, ''Basis of Presentation'',
in our Notes to Consolidated Condensed Financial Statements in Part
I of Form 10-Q for the quarter ended September 30, 2018, for
further discussion.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS – MD&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|
($ In Thousands,
Except Share and Per Share Data) (Unaudited)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
361,031
|
|
|
$
|
358,220
|
|
|
|
2,811
|
|
|
|
0.8
|
|
|
$
|
1,139,637
|
|
|
$
|
1,067,069
|
|
|
|
72,568
|
|
|
|
6.8
|
|
Product
revenue
|
|
|
112,249
|
|
|
|
94,841
|
|
|
|
17,408
|
|
|
|
18.4
|
|
|
|
313,279
|
|
|
|
276,439
|
|
|
|
36,840
|
|
|
|
13.3
|
|
Total
revenue
|
|
|
473,280
|
|
|
|
453,061
|
|
|
|
20,219
|
|
|
|
4.5
|
|
|
|
1,452,916
|
|
|
|
1,343,508
|
|
|
|
109,408
|
|
|
|
8.1
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
166,694
|
|
|
|
153,218
|
|
|
|
(13,476)
|
|
|
|
(8.8)
|
|
|
|
533,889
|
|
|
|
455,038
|
|
|
|
(78,851)
|
|
|
|
(17.3)
|
|
Cost of product
sales
|
|
|
47,823
|
|
|
|
35,669
|
|
|
|
(12,154)
|
|
|
|
(34.1)
|
|
|
|
148,372
|
|
|
|
123,143
|
|
|
|
(25,229)
|
|
|
|
(20.5)
|
|
Selling, general and
administrative
|
|
|
86,487
|
|
|
|
84,898
|
|
|
|
(1,589)
|
|
|
|
(1.9)
|
|
|
|
262,371
|
|
|
|
244,817
|
|
|
|
(17,554)
|
|
|
|
(7.2)
|
|
Fees to
Manager-related party
|
|
|
12,333
|
|
|
|
17,954
|
|
|
|
5,621
|
|
|
|
31.3
|
|
|
|
36,113
|
|
|
|
54,610
|
|
|
|
18,497
|
|
|
|
33.9
|
|
Goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
|
|
(3,215)
|
|
|
|
NM
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
(3,215)
|
|
|
|
NM
|
|
Depreciation
|
|
|
56,924
|
|
|
|
58,009
|
|
|
|
1,085
|
|
|
|
1.9
|
|
|
|
179,368
|
|
|
|
172,753
|
|
|
|
(6,615)
|
|
|
|
(3.8)
|
|
Amortization of
intangibles
|
|
|
20,030
|
|
|
|
17,329
|
|
|
|
(2,701)
|
|
|
|
(15.6)
|
|
|
|
55,470
|
|
|
|
50,920
|
|
|
|
(4,550)
|
|
|
|
(8.9)
|
|
Total operating
expenses
|
|
|
393,506
|
|
|
|
367,077
|
|
|
|
(26,429)
|
|
|
|
(7.2)
|
|
|
|
1,218,798
|
|
|
|
1,101,281
|
|
|
|
(117,517)
|
|
|
|
(10.7)
|
|
Operating
income
|
|
|
79,774
|
|
|
|
85,984
|
|
|
|
(6,210)
|
|
|
|
(7.2)
|
|
|
|
234,118
|
|
|
|
242,227
|
|
|
|
(8,109)
|
|
|
|
(3.3)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
113
|
|
|
|
54
|
|
|
|
59
|
|
|
|
109.3
|
|
|
|
304
|
|
|
|
129
|
|
|
|
175
|
|
|
|
135.7
|
|
Interest
expense(1)
|
|
|
(32,616)
|
|
|
|
(29,291)
|
|
|
|
(3,325)
|
|
|
|
(11.4)
|
|
|
|
(81,693)
|
|
|
|
(90,129)
|
|
|
|
8,436
|
|
|
|
9.4
|
|
Other (expense)
income,
net
|
|
|
(18,011)
|
|
|
|
4,973
|
|
|
|
(22,984)
|
|
|
|
NM
|
|
|
|
(11,721)
|
|
|
|
7,893
|
|
|
|
(19,614)
|
|
|
|
NM
|
|
Net income before
income taxes
|
|
|
29,260
|
|
|
|
61,720
|
|
|
|
(32,460)
|
|
|
|
(52.6)
|
|
|
|
141,008
|
|
|
|
160,120
|
|
|
|
(19,112)
|
|
|
|
(11.9)
|
|
Provision for income
taxes
|
|
|
(7,884)
|
|
|
|
(25,547)
|
|
|
|
17,663
|
|
|
|
69.1
|
|
|
|
(36,558)
|
|
|
|
(65,284)
|
|
|
|
28,726
|
|
|
|
44.0
|
|
Net income
|
|
$
|
21,376
|
|
|
$
|
36,173
|
|
|
|
(14,797)
|
|
|
|
(40.9)
|
|
|
$
|
104,450
|
|
|
$
|
94,836
|
|
|
|
9,614
|
|
|
|
10.1
|
|
Less: net loss
attributable to
noncontrolling interests
|
|
|
(328)
|
|
|
|
(3,922)
|
|
|
|
(3,594)
|
|
|
|
(91.6)
|
|
|
|
(32,454)
|
|
|
|
(7,294)
|
|
|
|
25,160
|
|
|
|
NM
|
|
Net income
attributable to MIC
|
|
$
|
21,704
|
|
|
$
|
40,095
|
|
|
|
(18,391)
|
|
|
|
(45.9)
|
|
|
$
|
136,904
|
|
|
$
|
102,130
|
|
|
|
34,774
|
|
|
|
34.0
|
|
Basic income per
share attributable to MIC
|
|
$
|
0.25
|
|
|
$
|
0.48
|
|
|
|
(0.23)
|
|
|
|
(47.9)
|
|
|
$
|
1.61
|
|
|
$
|
1.23
|
|
|
|
0.38
|
|
|
|
30.9
|
|
Weighted average
number of shares outstanding: basic
|
|
|
85,378,088
|
|
|
|
83,644,806
|
|
|
|
1,733,282
|
|
|
|
2.1
|
|
|
|
85,095,956
|
|
|
|
82,743,285
|
|
|
|
2,352,671
|
|
|
|
2.8
|
|
|
NM — Not
meaningful
|
|
(1) Interest expense
includes gains on derivative instruments of $4.8 million and $25.8
million for the quarter and nine months ended September 30, 2018,
respectively. For the quarter and nine months ended September 30,
2017, interest expense includes losses on derivative instruments of
$162,000 and $6.9 million, respectively.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
RECONCILIATION OF CONSOLIDATED NET INCOME TO EBITDA EXCLUDING
NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY
OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|
($ In Thousands)
(Unaudited)
|
Net income
|
|
$
|
21,376
|
|
|
$
|
36,173
|
|
|
|
|
|
|
|
|
|
|
$
|
104,450
|
|
|
$
|
94,836
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
32,503
|
|
|
|
29,237
|
|
|
|
|
|
|
|
|
|
|
|
81,389
|
|
|
|
90,000
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
7,884
|
|
|
|
25,547
|
|
|
|
|
|
|
|
|
|
|
|
36,558
|
|
|
|
65,284
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
56,924
|
|
|
|
58,009
|
|
|
|
|
|
|
|
|
|
|
|
179,368
|
|
|
|
172,753
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
|
20,030
|
|
|
|
17,329
|
|
|
|
|
|
|
|
|
|
|
|
55,470
|
|
|
|
50,920
|
|
|
|
|
|
|
|
|
|
Fees to
Manager-related
party
|
|
|
12,333
|
|
|
|
17,954
|
|
|
|
|
|
|
|
|
|
|
|
36,113
|
|
|
|
54,610
|
|
|
|
|
|
|
|
|
|
Pension
expense(2)
|
|
|
2,094
|
|
|
|
2,160
|
|
|
|
|
|
|
|
|
|
|
|
6,284
|
|
|
|
6,481
|
|
|
|
|
|
|
|
|
|
Other non-cash
expense (income), net(3)
|
|
|
3,437
|
|
|
|
(3,725)
|
|
|
|
|
|
|
|
|
|
|
|
6,803
|
|
|
|
(961)
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash
items
|
|
$
|
159,796
|
|
|
$
|
182,684
|
|
|
|
(22,888)
|
|
|
|
(12.5)
|
|
|
$
|
509,650
|
|
|
$
|
533,923
|
|
|
|
(24,273)
|
|
|
|
(4.5)
|
|
EBITDA excluding
non-cash
items
|
|
$
|
159,796
|
|
|
$
|
182,684
|
|
|
|
|
|
|
|
|
|
|
$
|
509,650
|
|
|
$
|
533,923
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
(32,503)
|
|
|
|
(29,237)
|
|
|
|
|
|
|
|
|
|
|
|
(81,389)
|
|
|
|
(90,000)
|
|
|
|
|
|
|
|
|
|
Adjustments to
derivative instruments recorded in interest
expense(1)
|
|
|
(3,054)
|
|
|
|
(959)
|
|
|
|
|
|
|
|
|
|
|
|
(22,809)
|
|
|
|
1,724
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing costs(1)
|
|
|
2,191
|
|
|
|
2,163
|
|
|
|
|
|
|
|
|
|
|
|
7,430
|
|
|
|
6,464
|
|
|
|
|
|
|
|
|
|
Amortization of
debt
discount(1)
|
|
|
910
|
|
|
|
882
|
|
|
|
|
|
|
|
|
|
|
|
2,710
|
|
|
|
2,377
|
|
|
|
|
|
|
|
|
|
Provision for current
income
taxes
|
|
|
(3,076)
|
|
|
|
(2,154)
|
|
|
|
|
|
|
|
|
|
|
|
(10,659)
|
|
|
|
(8,493)
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(4)
|
|
|
22,787
|
|
|
|
(3,656)
|
|
|
|
|
|
|
|
|
|
|
|
8,120
|
|
|
|
(47,635)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
|
147,051
|
|
|
|
149,723
|
|
|
|
|
|
|
|
|
|
|
|
413,053
|
|
|
|
398,360
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(4)
|
|
|
(22,787)
|
|
|
|
3,656
|
|
|
|
|
|
|
|
|
|
|
|
(8,120)
|
|
|
|
47,635
|
|
|
|
|
|
|
|
|
|
Maintenance
capital
expenditures
|
|
|
(13,372)
|
|
|
|
(12,106)
|
|
|
|
|
|
|
|
|
|
|
|
(32,724)
|
|
|
|
(23,062)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
$
|
110,892
|
|
|
$
|
141,273
|
|
|
|
(30,381)
|
|
|
|
(21.5)
|
|
|
$
|
372,209
|
|
|
$
|
422,933
|
|
|
|
(50,724)
|
|
|
|
(12.0)
|
|
|
(1) Interest expense,
net, includes adjustments to derivative instruments, non-cash
amortization of deferred financing fees and non-cash amortization
of debt discount related to the 2.00% Convertible Senior Notes due
October 2023.
|
|
(2) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
|
(3) Other non-cash
expense (income), net, primarily includes non-cash amortization of
tolling liabilities, unrealized gains (losses) on commodity hedges
and non-cash gains (losses) related to the disposal of assets.
Other non-cash expense (income), net, also includes the write-down
of our investment in CPI for the quarter and nine months ended
September 30, 2018. See "Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) excluding non-cash items,
Free Cash Flow and Proportionately Combined Metrics" above for
further discussion.
|
|
(4) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash. See
Note 2, "Basis of Presentation", in our Notes to Consolidated
Condensed Financial Statements in Part I of Form 10-Q for the
quarter ended September 30, 2018.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
|
RECONCILIATION
FROM CONSOLIDATED FREE CASH FLOW TO
|
PROPORTIONATELY
COMBINED FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
|
($ In Thousands)
(Unaudited)
|
Free Cash
Flow – Consolidated basis
|
|
$
|
110,892
|
|
|
$
|
141,273
|
|
|
|
(30,381)
|
|
|
|
(21.5)
|
|
|
$
|
372,209
|
|
|
$
|
422,933
|
|
|
|
(50,724)
|
|
|
|
(12.0)
|
|
100% of Contracted
Power Free
Cash Flow included in
consolidated
Free Cash Flow
|
|
|
(30,865)
|
|
|
|
(25,970)
|
|
|
|
|
|
|
|
|
|
|
|
(71,365)
|
|
|
|
(56,513)
|
|
|
|
|
|
|
|
|
|
MIC's share of
Contracted Power Free
Cash Flow
|
|
|
28,474
|
|
|
|
24,667
|
|
|
|
|
|
|
|
|
|
|
|
64,600
|
|
|
|
51,300
|
|
|
|
|
|
|
|
|
|
100% of MIC Hawaii
Free Cash Flow
included in consolidated Free
Cash
Flow
|
|
|
11,342
|
|
|
|
(8,137)
|
|
|
|
|
|
|
|
|
|
|
|
(6,634)
|
|
|
|
(32,368)
|
|
|
|
|
|
|
|
|
|
MIC's share of MIC
Hawaii Free Cash
Flow
|
|
|
(11,345)
|
|
|
|
8,132
|
|
|
|
|
|
|
|
|
|
|
|
6,626
|
|
|
|
32,358
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow – Proportionately
Combined basis
|
|
$
|
108,498
|
|
|
$
|
139,965
|
|
|
|
(31,467)
|
|
|
|
(22.5)
|
|
|
$
|
365,436
|
|
|
$
|
417,710
|
|
|
|
(52,274)
|
|
|
|
(12.5)
|
|
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
|
|
IMTT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In
Thousands) (Unaudited)
|
Revenue
|
|
|
118,229
|
|
|
|
134,167
|
|
|
|
(15,938)
|
|
|
|
(11.9)
|
|
|
|
386,981
|
|
|
|
410,128
|
|
|
|
(23,147)
|
|
|
|
(5.6)
|
|
Cost of
services
|
|
|
43,864
|
|
|
|
48,982
|
|
|
|
5,118
|
|
|
|
10.4
|
|
|
|
148,005
|
|
|
|
148,052
|
|
|
|
47
|
|
|
|
0.0
|
|
Selling, general and
administrative expenses
|
|
|
7,565
|
|
|
|
9,104
|
|
|
|
1,539
|
|
|
|
16.9
|
|
|
|
24,685
|
|
|
|
25,627
|
|
|
|
942
|
|
|
|
3.7
|
|
Depreciation and
amortization
|
|
|
32,683
|
|
|
|
31,511
|
|
|
|
(1,172)
|
|
|
|
(3.7)
|
|
|
|
98,702
|
|
|
|
93,826
|
|
|
|
(4,876)
|
|
|
|
(5.2)
|
|
Operating
income
|
|
|
34,117
|
|
|
|
44,570
|
|
|
|
(10,453)
|
|
|
|
(23.5)
|
|
|
|
115,589
|
|
|
|
142,623
|
|
|
|
(27,034)
|
|
|
|
(19.0)
|
|
Interest expense,
net(1)
|
|
|
(11,677)
|
|
|
|
(10,187)
|
|
|
|
(1,490)
|
|
|
|
(14.6)
|
|
|
|
(30,349)
|
|
|
|
(30,707)
|
|
|
|
358
|
|
|
|
1.2
|
|
Other income,
net
|
|
|
414
|
|
|
|
794
|
|
|
|
(380)
|
|
|
|
(47.9)
|
|
|
|
864
|
|
|
|
1,954
|
|
|
|
(1,090)
|
|
|
|
(55.8)
|
|
Provision for income
taxes
|
|
|
(6,422)
|
|
|
|
(14,422)
|
|
|
|
8,000
|
|
|
|
55.5
|
|
|
|
(24,195)
|
|
|
|
(46,686)
|
|
|
|
22,491
|
|
|
|
48.2
|
|
Net income
|
|
|
16,432
|
|
|
|
20,755
|
|
|
|
(4,323)
|
|
|
|
(20.8)
|
|
|
|
61,909
|
|
|
|
67,184
|
|
|
|
(5,275)
|
|
|
|
(7.9)
|
|
Reconciliation
of net income to
EBITDA excluding non-cash
items and a reconciliation of
cash provided by operating
activities to Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
16,432
|
|
|
|
20,755
|
|
|
|
|
|
|
|
|
|
|
|
61,909
|
|
|
|
67,184
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
11,677
|
|
|
|
10,187
|
|
|
|
|
|
|
|
|
|
|
|
30,349
|
|
|
|
30,707
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
6,422
|
|
|
|
14,422
|
|
|
|
|
|
|
|
|
|
|
|
24,195
|
|
|
|
46,686
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
32,683
|
|
|
|
31,511
|
|
|
|
|
|
|
|
|
|
|
|
98,702
|
|
|
|
93,826
|
|
|
|
|
|
|
|
|
|
Pension
expense(2)
|
|
|
1,914
|
|
|
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
5,737
|
|
|
|
5,649
|
|
|
|
|
|
|
|
|
|
Other non-cash
expense, net
|
|
|
207
|
|
|
|
178
|
|
|
|
|
|
|
|
|
|
|
|
611
|
|
|
|
315
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash
items
|
|
|
69,335
|
|
|
|
78,936
|
|
|
|
(9,601)
|
|
|
|
(12.2)
|
|
|
|
221,503
|
|
|
|
244,367
|
|
|
|
(22,864)
|
|
|
|
(9.4)
|
|
EBITDA excluding
non-cash
items
|
|
|
69,335
|
|
|
|
78,936
|
|
|
|
|
|
|
|
|
|
|
|
221,503
|
|
|
|
244,367
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
(11,677)
|
|
|
|
(10,187)
|
|
|
|
|
|
|
|
|
|
|
|
(30,349)
|
|
|
|
(30,707)
|
|
|
|
|
|
|
|
|
|
Adjustments to
derivative instruments recorded in interest
expense(1)
|
|
|
(870)
|
|
|
|
(524)
|
|
|
|
|
|
|
|
|
|
|
|
(6,263)
|
|
|
|
(257)
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing costs(1)
|
|
|
411
|
|
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
1,234
|
|
|
|
1,236
|
|
|
|
|
|
|
|
|
|
Benefit (provision)
for current income taxes
|
|
|
2,593
|
|
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
(6,059)
|
|
|
|
(3,069)
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
(721)
|
|
|
|
3,732
|
|
|
|
|
|
|
|
|
|
|
|
9,913
|
|
|
|
(12,413)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
|
59,071
|
|
|
|
72,714
|
|
|
|
|
|
|
|
|
|
|
|
189,979
|
|
|
|
199,157
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
721
|
|
|
|
(3,732)
|
|
|
|
|
|
|
|
|
|
|
|
(9,913)
|
|
|
|
12,413
|
|
|
|
|
|
|
|
|
|
Maintenance
capital
expenditures
|
|
|
(8,863)
|
|
|
|
(8,116)
|
|
|
|
|
|
|
|
|
|
|
|
(21,335)
|
|
|
|
(13,563)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
50,929
|
|
|
|
60,866
|
|
|
|
(9,937)
|
|
|
|
(16.3)
|
|
|
|
158,731
|
|
|
|
198,007
|
|
|
|
(39,276)
|
|
|
|
(19.8)
|
|
|
(1) Interest expense,
net, includes adjustments to derivative instruments and non-cash
amortization of deferred financing fees.
|
|
(2) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
Atlantic
Aviation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In
Thousands) (Unaudited)
|
Revenue
|
|
|
234,908
|
|
|
|
211,457
|
|
|
|
23,451
|
|
|
|
11.1
|
|
|
|
715,041
|
|
|
|
621,149
|
|
|
|
93,892
|
|
|
|
15.1
|
|
Cost of services
(exclusive of depreciation and amortization shown separately
below)
|
|
|
113,077
|
|
|
|
92,106
|
|
|
|
(20,971)
|
|
|
|
(22.8)
|
|
|
|
345,764
|
|
|
|
272,985
|
|
|
|
(72,779)
|
|
|
|
(26.7)
|
|
Gross
margin
|
|
|
121,831
|
|
|
|
119,351
|
|
|
|
2,480
|
|
|
|
2.1
|
|
|
|
369,277
|
|
|
|
348,164
|
|
|
|
21,113
|
|
|
|
6.1
|
|
Selling, general and
administrative expenses
|
|
|
57,146
|
|
|
|
57,026
|
|
|
|
(120)
|
|
|
|
(0.2)
|
|
|
|
173,802
|
|
|
|
163,512
|
|
|
|
(10,290)
|
|
|
|
(6.3)
|
|
Depreciation and
amortization
|
|
|
25,582
|
|
|
|
25,286
|
|
|
|
(296)
|
|
|
|
(1.2)
|
|
|
|
78,020
|
|
|
|
73,894
|
|
|
|
(4,126)
|
|
|
|
(5.6)
|
|
Operating
income
|
|
|
39,103
|
|
|
|
37,039
|
|
|
|
2,064
|
|
|
|
5.6
|
|
|
|
117,455
|
|
|
|
110,758
|
|
|
|
6,697
|
|
|
|
6.0
|
|
Interest expense,
net(1)
|
|
|
(5,290)
|
|
|
|
(4,295)
|
|
|
|
(995)
|
|
|
|
(23.2)
|
|
|
|
(9,601)
|
|
|
|
(13,648)
|
|
|
|
4,047
|
|
|
|
29.7
|
|
Other expense,
net
|
|
|
(20)
|
|
|
|
(14)
|
|
|
|
(6)
|
|
|
|
(42.9)
|
|
|
|
(519)
|
|
|
|
(119)
|
|
|
|
(400)
|
|
|
|
NM
|
|
Provision for income
taxes
|
|
|
(9,058)
|
|
|
|
(11,139)
|
|
|
|
2,081
|
|
|
|
18.7
|
|
|
|
(28,769)
|
|
|
|
(36,766)
|
|
|
|
7,997
|
|
|
|
21.8
|
|
Net income
|
|
|
24,735
|
|
|
|
21,591
|
|
|
|
3,144
|
|
|
|
14.6
|
|
|
|
78,566
|
|
|
|
60,225
|
|
|
|
18,341
|
|
|
|
30.5
|
|
Reconciliation
of net income to
EBITDA excluding non-cash
items and a reconciliation of
cash provided by operating
activities to Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
24,735
|
|
|
|
21,591
|
|
|
|
|
|
|
|
|
|
|
|
78,566
|
|
|
|
60,225
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
5,290
|
|
|
|
4,295
|
|
|
|
|
|
|
|
|
|
|
|
9,601
|
|
|
|
13,648
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
9,058
|
|
|
|
11,139
|
|
|
|
|
|
|
|
|
|
|
|
28,769
|
|
|
|
36,766
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
25,582
|
|
|
|
25,286
|
|
|
|
|
|
|
|
|
|
|
|
78,020
|
|
|
|
73,894
|
|
|
|
|
|
|
|
|
|
Pension
expense(2)
|
|
|
5
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
Other non-cash
expense, net
|
|
|
323
|
|
|
|
1,212
|
|
|
|
|
|
|
|
|
|
|
|
1,232
|
|
|
|
1,252
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash
items
|
|
|
64,993
|
|
|
|
63,528
|
|
|
|
1,465
|
|
|
|
2.3
|
|
|
|
196,204
|
|
|
|
185,800
|
|
|
|
10,404
|
|
|
|
5.6
|
|
EBITDA excluding
non-cash
items
|
|
|
64,993
|
|
|
|
63,528
|
|
|
|
|
|
|
|
|
|
|
|
196,204
|
|
|
|
185,800
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
(5,290)
|
|
|
|
(4,295)
|
|
|
|
|
|
|
|
|
|
|
|
(9,601)
|
|
|
|
(13,648)
|
|
|
|
|
|
|
|
|
|
Convertible senior
notes interest(3)
|
|
|
(2,013)
|
|
|
|
(2,012)
|
|
|
|
|
|
|
|
|
|
|
|
(6,038)
|
|
|
|
(5,769)
|
|
|
|
|
|
|
|
|
|
Adjustments to
derivative instruments recorded in interest
expense(1)
|
|
|
(354)
|
|
|
|
464
|
|
|
|
|
|
|
|
|
|
|
|
(5,798)
|
|
|
|
3,150
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing costs(1)
|
|
|
280
|
|
|
|
284
|
|
|
|
|
|
|
|
|
|
|
|
842
|
|
|
|
819
|
|
|
|
|
|
|
|
|
|
Provision for current
income
taxes
|
|
|
(5,729)
|
|
|
|
(1,208)
|
|
|
|
|
|
|
|
|
|
|
|
(19,469)
|
|
|
|
(5,810)
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
6,313
|
|
|
|
(1,335)
|
|
|
|
|
|
|
|
|
|
|
|
16,904
|
|
|
|
(6,667)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
|
58,200
|
|
|
|
55,426
|
|
|
|
|
|
|
|
|
|
|
|
173,044
|
|
|
|
157,875
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
(6,313)
|
|
|
|
1,335
|
|
|
|
|
|
|
|
|
|
|
|
(16,904)
|
|
|
|
6,667
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
|
(2,191)
|
|
|
|
(2,165)
|
|
|
|
|
|
|
|
|
|
|
|
(5,300)
|
|
|
|
(5,071)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
49,696
|
|
|
|
54,596
|
|
|
|
(4,900)
|
|
|
|
(9.0)
|
|
|
|
150,840
|
|
|
|
159,471
|
|
|
|
(8,631)
|
|
|
|
(5.4)
|
|
|
NM — Not
meaningful
|
|
(1) Interest expense,
net, includes adjustments to derivative instruments and non-cash
amortization of deferred financing fees.
|
|
(2) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
|
(3) Represents the
cash interest expense reclassified from MIC Corporate related to
the 2.00% Convertible Senior Notes due October 2023, proceeds of
which were used to pay down a portion of Atlantic Aviation's credit
facility in October 2016.
|
Contracted
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In
Thousands) (Unaudited)
|
Product
revenue
|
|
|
52,450
|
|
|
|
42,445
|
|
|
|
10,005
|
|
|
|
23.6
|
|
|
|
129,140
|
|
|
|
110,681
|
|
|
|
18,459
|
|
|
|
16.7
|
|
Cost of product
sales
|
|
|
8,744
|
|
|
|
5,171
|
|
|
|
(3,573)
|
|
|
|
(69.1)
|
|
|
|
20,443
|
|
|
|
15,528
|
|
|
|
(4,915)
|
|
|
|
(31.7)
|
|
Selling, general and
administrative expenses
|
|
|
8,204
|
|
|
|
6,909
|
|
|
|
(1,295)
|
|
|
|
(18.7)
|
|
|
|
23,226
|
|
|
|
18,318
|
|
|
|
(4,908)
|
|
|
|
(26.8)
|
|
Depreciation and
amortization
|
|
|
8,026
|
|
|
|
14,830
|
|
|
|
6,804
|
|
|
|
45.9
|
|
|
|
38,072
|
|
|
|
45,031
|
|
|
|
6,959
|
|
|
|
15.5
|
|
Operating
income
|
|
|
27,476
|
|
|
|
15,535
|
|
|
|
11,941
|
|
|
|
76.9
|
|
|
|
47,399
|
|
|
|
31,804
|
|
|
|
15,595
|
|
|
|
49.0
|
|
Interest expense,
net(1)
|
|
|
(4,944)
|
|
|
|
(6,281)
|
|
|
|
1,337
|
|
|
|
21.3
|
|
|
|
(10,661)
|
|
|
|
(20,431)
|
|
|
|
9,770
|
|
|
|
47.8
|
|
Other income,
net
|
|
|
3,448
|
|
|
|
4,334
|
|
|
|
(886)
|
|
|
|
(20.4)
|
|
|
|
11,174
|
|
|
|
6,440
|
|
|
|
4,734
|
|
|
|
73.5
|
|
Provision for income
taxes
|
|
|
(7,852)
|
|
|
|
(6,337)
|
|
|
|
(1,515)
|
|
|
|
(23.9)
|
|
|
|
(12,456)
|
|
|
|
(8,209)
|
|
|
|
(4,247)
|
|
|
|
(51.7)
|
|
Net income
|
|
|
18,128
|
|
|
|
7,251
|
|
|
|
10,877
|
|
|
|
150.0
|
|
|
|
35,456
|
|
|
|
9,604
|
|
|
|
25,852
|
|
|
|
NM
|
|
Less: net loss
attributable to noncontrolling interest
|
|
|
(260)
|
|
|
|
(3,890)
|
|
|
|
(3,630)
|
|
|
|
(93.3)
|
|
|
|
(32,319)
|
|
|
|
(7,223)
|
|
|
|
25,096
|
|
|
|
NM
|
|
Net income
attributable to MIC
|
|
|
18,388
|
|
|
|
11,141
|
|
|
|
7,247
|
|
|
|
65.0
|
|
|
|
67,775
|
|
|
|
16,827
|
|
|
|
50,948
|
|
|
|
NM
|
|
Reconciliation
of net income to
EBITDA excluding non-cash items
and a reconciliation of cash provided
by operating activities to Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
18,128
|
|
|
|
7,251
|
|
|
|
|
|
|
|
|
|
|
|
35,456
|
|
|
|
9,604
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
4,944
|
|
|
|
6,281
|
|
|
|
|
|
|
|
|
|
|
|
10,661
|
|
|
|
20,431
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
7,852
|
|
|
|
6,337
|
|
|
|
|
|
|
|
|
|
|
|
12,456
|
|
|
|
8,209
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
8,026
|
|
|
|
14,830
|
|
|
|
|
|
|
|
|
|
|
|
38,072
|
|
|
|
45,031
|
|
|
|
|
|
|
|
|
|
Other non-cash
income, net(2)
|
|
|
(1,574)
|
|
|
|
(1,914)
|
|
|
|
|
|
|
|
|
|
|
|
(5,152)
|
|
|
|
(6,170)
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash
items
|
|
|
37,376
|
|
|
|
32,785
|
|
|
|
4,591
|
|
|
|
14.0
|
|
|
|
91,493
|
|
|
|
77,105
|
|
|
|
14,388
|
|
|
|
18.7
|
|
EBITDA excluding
non-cash
items
|
|
|
37,376
|
|
|
|
32,785
|
|
|
|
|
|
|
|
|
|
|
|
91,493
|
|
|
|
77,105
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
(4,944)
|
|
|
|
(6,281)
|
|
|
|
|
|
|
|
|
|
|
|
(10,661)
|
|
|
|
(20,431)
|
|
|
|
|
|
|
|
|
|
Adjustments to
derivative instruments recorded in interest
expense(1)
|
|
|
(1,863)
|
|
|
|
(922)
|
|
|
|
|
|
|
|
|
|
|
|
(10,011)
|
|
|
|
(1,282)
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing
costs(1)
|
|
|
380
|
|
|
|
379
|
|
|
|
|
|
|
|
|
|
|
|
1,138
|
|
|
|
1,137
|
|
|
|
|
|
|
|
|
|
(Provision) benefit
for current income taxes
|
|
|
(84)
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
(154)
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(3)
|
|
|
(5,615)
|
|
|
|
(565)
|
|
|
|
|
|
|
|
|
|
|
|
(17,390)
|
|
|
|
(8,771)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
|
25,250
|
|
|
|
25,405
|
|
|
|
|
|
|
|
|
|
|
|
54,415
|
|
|
|
47,764
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(3)
|
|
|
5,615
|
|
|
|
565
|
|
|
|
|
|
|
|
|
|
|
|
17,390
|
|
|
|
8,771
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(440)
|
|
|
|
(22)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
30,865
|
|
|
|
25,970
|
|
|
|
4,895
|
|
|
|
18.8
|
|
|
|
71,365
|
|
|
|
56,513
|
|
|
|
14,852
|
|
|
|
26.3
|
|
|
NM — Not
meaningful
|
|
(1) Interest expense,
net, includes adjustments to derivative instruments and non-cash
amortization of deferred financing fees.
|
|
(2) Other non-cash
income, net, primarily includes amortization of tolling
liabilities. See "Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) excluding non-cash items, Free Cash Flow
and Proportionately Combined Metrics" above for further
discussion.
|
|
(3) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash. See
Note 2, "Basis of Presentation", in our Notes to Consolidated
Condensed Financial Statements in Part I of Form 10-Q for the
quarter ended September 30, 2018.
|
|
MIC
Hawaii
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In Thousands)
(Unaudited)
|
Product
revenue
|
|
|
59,799
|
|
|
|
52,396
|
|
|
|
7,403
|
|
|
|
14.1
|
|
|
|
184,139
|
|
|
|
165,758
|
|
|
|
18,381
|
|
|
|
11.1
|
|
Service
revenue
|
|
|
9,122
|
|
|
|
13,826
|
|
|
|
(4,704)
|
|
|
|
(34.0)
|
|
|
|
41,306
|
|
|
|
39,476
|
|
|
|
1,830
|
|
|
|
4.6
|
|
Total
revenue
|
|
|
68,921
|
|
|
|
66,222
|
|
|
|
2,699
|
|
|
|
4.1
|
|
|
|
225,445
|
|
|
|
205,234
|
|
|
|
20,211
|
|
|
|
9.8
|
|
Cost of product sales
(exclusive of depreciation and amortization shown separately
below)
|
|
|
39,079
|
|
|
|
30,498
|
|
|
|
(8,581)
|
|
|
|
(28.1)
|
|
|
|
127,929
|
|
|
|
107,615
|
|
|
|
(20,314)
|
|
|
|
(18.9)
|
|
Cost of services
(exclusive of depreciation and amortization shown separately
below)
|
|
|
9,753
|
|
|
|
12,131
|
|
|
|
2,378
|
|
|
|
19.6
|
|
|
|
40,120
|
|
|
|
34,015
|
|
|
|
(6,105)
|
|
|
|
(17.9)
|
|
Cost of
revenue – total
|
|
|
48,832
|
|
|
|
42,629
|
|
|
|
(6,203)
|
|
|
|
(14.6)
|
|
|
|
168,049
|
|
|
|
141,630
|
|
|
|
(26,419)
|
|
|
|
(18.7)
|
|
Gross
margin
|
|
|
20,089
|
|
|
|
23,593
|
|
|
|
(3,504)
|
|
|
|
(14.9)
|
|
|
|
57,396
|
|
|
|
63,604
|
|
|
|
(6,208)
|
|
|
|
(9.8)
|
|
Selling, general and
administrative expenses
|
|
|
7,650
|
|
|
|
6,874
|
|
|
|
(776)
|
|
|
|
(11.3)
|
|
|
|
22,853
|
|
|
|
19,729
|
|
|
|
(3,124)
|
|
|
|
(15.8)
|
|
Goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
|
|
(3,215)
|
|
|
|
NM
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
(3,215)
|
|
|
|
NM
|
|
Depreciation and
amortization
|
|
|
10,489
|
|
|
|
3,711
|
|
|
|
(6,778)
|
|
|
|
(182.6)
|
|
|
|
19,540
|
|
|
|
10,922
|
|
|
|
(8,618)
|
|
|
|
(78.9)
|
|
Operating (loss)
income
|
|
|
(1,265)
|
|
|
|
13,008
|
|
|
|
(14,273)
|
|
|
|
(109.7)
|
|
|
|
11,788
|
|
|
|
32,953
|
|
|
|
(21,165)
|
|
|
|
(64.2)
|
|
Interest expense,
net(1)
|
|
|
(2,069)
|
|
|
|
(1,877)
|
|
|
|
(192)
|
|
|
|
(10.2)
|
|
|
|
(5,246)
|
|
|
|
(5,795)
|
|
|
|
549
|
|
|
|
9.5
|
|
Other expense,
net
|
|
|
(21,923)
|
|
|
|
(141)
|
|
|
|
(21,782)
|
|
|
|
NM
|
|
|
|
(23,236)
|
|
|
|
(382)
|
|
|
|
(22,854)
|
|
|
|
NM
|
|
Benefit (provision)
for income taxes
|
|
|
7,299
|
|
|
|
(4,830)
|
|
|
|
12,129
|
|
|
|
NM
|
|
|
|
4,350
|
|
|
|
(10,772)
|
|
|
|
15,122
|
|
|
|
140.4
|
|
Net (loss)
income
|
|
|
(17,958)
|
|
|
|
6,160
|
|
|
|
(24,118)
|
|
|
|
NM
|
|
|
|
(12,344)
|
|
|
|
16,004
|
|
|
|
(28,348)
|
|
|
|
(177.1)
|
|
Less: net loss
attributable to noncontrolling interests
|
|
|
(68)
|
|
|
|
(32)
|
|
|
|
36
|
|
|
|
112.5
|
|
|
|
(135)
|
|
|
|
(71)
|
|
|
|
64
|
|
|
|
90.1
|
|
Net (loss) income
attributable to MIC
|
|
|
(17,890)
|
|
|
|
6,192
|
|
|
|
(24,082)
|
|
|
|
NM
|
|
|
|
(12,209)
|
|
|
|
16,075
|
|
|
|
(28,284)
|
|
|
|
(176.0)
|
|
Reconciliation
of net (loss) income to
EBITDA excluding non-cash items
and a reconciliation of cash provided
by operating activities to Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(17,958)
|
|
|
|
6,160
|
|
|
|
|
|
|
|
|
|
|
|
(12,344)
|
|
|
|
16,004
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
2,069
|
|
|
|
1,877
|
|
|
|
|
|
|
|
|
|
|
|
5,246
|
|
|
|
5,795
|
|
|
|
|
|
|
|
|
|
(Benefit) provision
for income taxes
|
|
|
(7,299)
|
|
|
|
4,830
|
|
|
|
|
|
|
|
|
|
|
|
(4,350)
|
|
|
|
10,772
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
|
3,215
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10,489
|
|
|
|
3,711
|
|
|
|
|
|
|
|
|
|
|
|
19,540
|
|
|
|
10,922
|
|
|
|
|
|
|
|
|
|
Pension
expense(2)
|
|
|
128
|
|
|
|
272
|
|
|
|
|
|
|
|
|
|
|
|
383
|
|
|
|
817
|
|
|
|
|
|
|
|
|
|
Other non-cash
expense (income), net(3)
|
|
|
4,303
|
|
|
|
(3,360)
|
|
|
|
|
|
|
|
|
|
|
|
9,548
|
|
|
|
3,108
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
|
|
(5,053)
|
|
|
|
13,490
|
|
|
|
(18,543)
|
|
|
|
(137.5)
|
|
|
|
21,238
|
|
|
|
47,418
|
|
|
|
(26,180)
|
|
|
|
(55.2)
|
|
EBITDA excluding
non-cash items
|
|
|
(5,053)
|
|
|
|
13,490
|
|
|
|
|
|
|
|
|
|
|
|
21,238
|
|
|
|
47,418
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(1)
|
|
|
(2,069)
|
|
|
|
(1,877)
|
|
|
|
|
|
|
|
|
|
|
|
(5,246)
|
|
|
|
(5,795)
|
|
|
|
|
|
|
|
|
|
Adjustments to
derivative instruments recorded in interest
expense(1)
|
|
|
33
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
(737)
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing costs(1)
|
|
|
97
|
|
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
289
|
|
|
|
303
|
|
|
|
|
|
|
|
|
|
Provision for current
income taxes
|
|
|
(2,032)
|
|
|
|
(1,773)
|
|
|
|
|
|
|
|
|
|
|
|
(3,261)
|
|
|
|
(5,265)
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(4)
|
|
|
22,570
|
|
|
|
(2,554)
|
|
|
|
|
|
|
|
|
|
|
|
16,420
|
|
|
|
(13,093)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
|
13,546
|
|
|
|
7,408
|
|
|
|
|
|
|
|
|
|
|
|
28,703
|
|
|
|
23,681
|
|
|
|
|
|
|
|
|
|
Changes in working
capital(4)
|
|
|
(22,570)
|
|
|
|
2,554
|
|
|
|
|
|
|
|
|
|
|
|
(16,420)
|
|
|
|
13,093
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
|
(2,318)
|
|
|
|
(1,825)
|
|
|
|
|
|
|
|
|
|
|
|
(5,649)
|
|
|
|
(4,406)
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
(11,342)
|
|
|
|
8,137
|
|
|
|
(19,479)
|
|
|
|
NM
|
|
|
|
6,634
|
|
|
|
32,368
|
|
|
|
(25,734)
|
|
|
|
(79.5)
|
|
|
NM — Not
meaningful
|
|
(1) Interest expense,
net, includes adjustments to derivative instruments related to
interest rate swaps and non-cash amortization of deferred financing
fees.
|
|
(2) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
|
(3) Other non-cash
expense (income), net, primarily includes non-cash adjustments
related to unrealized gains (losses) on commodity hedges and
non-cash gains (losses) related to the disposal of assets. Other
non-cash expense (income), net, also includes the write-down of our
investment in CPI for the quarter and nine months ended September
30, 2018. See "Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) excluding non-cash items, Free Cash Flow and
Proportionately Combined Metrics" above for further
discussion.
|
|
(4) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash. See
Note 2, "Basis of Presentation", in our Notes to Consolidated
Condensed Financial Statements in Part I of Form 10-Q for the
quarter ended September 30, 2018.
|
Corporate and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
Nine Months
Ended
September 30,
|
|
Change
Favorable/
(Unfavorable)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In Thousands)
(Unaudited)
|
Fees to
Manager-related party
|
|
|
12,333
|
|
|
|
17,954
|
|
|
|
5,621
|
|
|
|
31.3
|
|
|
|
36,113
|
|
|
|
54,610
|
|
|
|
18,497
|
|
|
|
33.9
|
|
Selling, general and
administrative expenses(1)
|
|
|
7,150
|
|
|
|
6,214
|
|
|
|
(936)
|
|
|
|
(15.1)
|
|
|
|
21,496
|
|
|
|
21,301
|
|
|
|
(195)
|
|
|
|
(0.9)
|
|
Depreciation
|
|
|
174
|
|
|
|
—
|
|
|
|
(174)
|
|
|
|
NM
|
|
|
|
504
|
|
|
|
—
|
|
|
|
(504)
|
|
|
|
NM
|
|
Operating
loss
|
|
|
(19,657)
|
|
|
|
(24,168)
|
|
|
|
4,511
|
|
|
|
18.7
|
|
|
|
(58,113)
|
|
|
|
(75,911)
|
|
|
|
17,798
|
|
|
|
23.4
|
|
Interest expense,
net(2)
|
|
|
(8,523)
|
|
|
|
(6,597)
|
|
|
|
(1,926)
|
|
|
|
(29.2)
|
|
|
|
(25,532)
|
|
|
|
(19,419)
|
|
|
|
(6,113)
|
|
|
|
(31.5)
|
|
Other income
(expense), net
|
|
|
70
|
|
|
|
—
|
|
|
|
70
|
|
|
|
NM
|
|
|
|
(4)
|
|
|
|
—
|
|
|
|
(4)
|
|
|
|
NM
|
|
Benefit for income
taxes
|
|
|
8,149
|
|
|
|
11,181
|
|
|
|
(3,032)
|
|
|
|
(27.1)
|
|
|
|
24,512
|
|
|
|
37,149
|
|
|
|
(12,637)
|
|
|
|
(34.0)
|
|
Net loss
|
|
|
(19,961)
|
|
|
|
(19,584)
|
|
|
|
(377)
|
|
|
|
(1.9)
|
|
|
|
(59,137)
|
|
|
|
(58,181)
|
|
|
|
(956)
|
|
|
|
(1.6)
|
|
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
|
|
|
(19,961)
|
|
|
|
(19,584)
|
|
|
|
|
|
|
|
|
|
|
|
(59,137)
|
|
|
|
(58,181)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(2)
|
|
|
8,523
|
|
|
|
6,597
|
|
|
|
|
|
|
|
|
|
|
|
25,532
|
|
|
|
19,419
|
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
|
|
(8,149)
|
|
|
|
(11,181)
|
|
|
|
|
|
|
|
|
|
|
|
(24,512)
|
|
|
|
(37,149)
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
174
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
504
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Fees to
Manager-related party
|
|
|
12,333
|
|
|
|
17,954
|
|
|
|
|
|
|
|
|
|
|
|
36,113
|
|
|
|
54,610
|
|
|
|
|
|
|
|
|
|
Pension
expense(3)
|
|
|
47
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
148
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Other non-cash
expense, net
|
|
|
178
|
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
564
|
|
|
|
534
|
|
|
|
|
|
|
|
|
|
EBITDA excluding
non-cash items
|
|
|
(6,855)
|
|
|
|
(6,055)
|
|
|
|
(800)
|
|
|
|
(13.2)
|
|
|
|
(20,788)
|
|
|
|
(20,767)
|
|
|
|
(21)
|
|
|
|
(0.1)
|
|
EBITDA excluding
non-cash items
|
|
|
(6,855)
|
|
|
|
(6,055)
|
|
|
|
|
|
|
|
|
|
|
|
(20,788)
|
|
|
|
(20,767)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net(2)
|
|
|
(8,523)
|
|
|
|
(6,597)
|
|
|
|
|
|
|
|
|
|
|
|
(25,532)
|
|
|
|
(19,419)
|
|
|
|
|
|
|
|
|
|
Convertible senior
notes interest(4)
|
|
|
2,013
|
|
|
|
2,012
|
|
|
|
|
|
|
|
|
|
|
|
6,038
|
|
|
|
5,769
|
|
|
|
|
|
|
|
|
|
Amortization of debt
financing costs(2)
|
|
|
1,023
|
|
|
|
988
|
|
|
|
|
|
|
|
|
|
|
|
3,927
|
|
|
|
2,969
|
|
|
|
|
|
|
|
|
|
Amortization of debt
discount(2)
|
|
|
910
|
|
|
|
882
|
|
|
|
|
|
|
|
|
|
|
|
2,710
|
|
|
|
2,377
|
|
|
|
|
|
|
|
|
|
Benefit for current
income taxes
|
|
|
2,176
|
|
|
|
474
|
|
|
|
|
|
|
|
|
|
|
|
18,284
|
|
|
|
5,645
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
240
|
|
|
|
(2,934)
|
|
|
|
|
|
|
|
|
|
|
|
(17,727)
|
|
|
|
(6,691)
|
|
|
|
|
|
|
|
|
|
Cash used in
operating activities
|
|
|
(9,016)
|
|
|
|
(11,230)
|
|
|
|
|
|
|
|
|
|
|
|
(33,088)
|
|
|
|
(30,117)
|
|
|
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
(240)
|
|
|
|
2,934
|
|
|
|
|
|
|
|
|
|
|
|
17,727
|
|
|
|
6,691
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
(9,256)
|
|
|
|
(8,296)
|
|
|
|
(960)
|
|
|
|
(11.6)
|
|
|
|
(15,361)
|
|
|
|
(23,426)
|
|
|
|
8,065
|
|
|
|
34.4
|
|
|
NM — Not
meaningful
|
|
(1) For the quarter
and nine months ended September 30, 2018, selling, general and
administrative expenses included $1.9 million and $7.5 million,
respectively, of costs incurred in connection with the evaluation
of various investment and acquisition/disposition opportunities,
compared with $3.0 million and $7.9 million, respectively, for the
quarter and nine months ended September 30, 2017. For the quarter
and nine months ended September 30, 2017, selling, general and
administrative expenses also included $1.4 million and $6.8
million, respectively, of costs related to the implementation of a
shared service center.
|
|
(2) Interest expense,
net, included non-cash amortization of deferred financing fees and
non-cash amortization of debt discount related to the 2.00%
Convertible Senior Notes due October 2023.
|
|
(3) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
|
(4) Represents the
cash interest expense reclassified to Atlantic Aviation related to
the 2.00% Convertible Senior Notes due October 2023, proceeds of
which were used to pay down a portion of Atlantic Aviation's credit
facility in October 2016.
|
MACQUARIE
INFRASTRUCTURE CORPORATION
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA EXCLUDING
NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY/(USED IN)
OPERATING
ACTIVITIES TO PROPORTIONATELY COMBINED FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended September 30, 2018
|
|
|
|
|
|
|
|
|
IMTT
|
|
Atlantic
Aviation
|
|
Contracted
Power(1)
|
|
MIC
Hawaii(1)
|
|
MIC
Corporate
|
|
Proportionately
Combined(2)
|
|
|
|
Contracted
Power
100%
|
|
MIC
Hawaii
100%
|
|
|
($ in Thousands)
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
16,432
|
|
|
|
24,735
|
|
|
|
17,252
|
|
|
|
(17,958)
|
|
|
|
(19,961)
|
|
|
|
20,500
|
|
|
|
|
|
|
|
18,128
|
|
|
|
(17,958)
|
|
Interest expense,
net(3)
|
|
|
11,677
|
|
|
|
5,290
|
|
|
|
4,373
|
|
|
|
2,068
|
|
|
|
8,523
|
|
|
|
31,931
|
|
|
|
|
|
|
|
4,944
|
|
|
|
2,069
|
|
Provision (benefit)
for income taxes
|
|
|
6,422
|
|
|
|
9,058
|
|
|
|
7,852
|
|
|
|
(7,299)
|
|
|
|
(8,149)
|
|
|
|
7,884
|
|
|
|
|
|
|
|
7,852
|
|
|
|
(7,299)
|
|
Goodwill
impairment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
3,215
|
|
|
|
|
|
|
|
—
|
|
|
|
3,215
|
|
Depreciation and
amortization
|
|
|
32,683
|
|
|
|
25,582
|
|
|
|
6,186
|
|
|
|
10,485
|
|
|
|
174
|
|
|
|
75,110
|
|
|
|
|
|
|
|
8,026
|
|
|
|
10,489
|
|
Fees to
Manager-related party
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,333
|
|
|
|
12,333
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension
expense(4)
|
|
|
1,914
|
|
|
|
5
|
|
|
|
—
|
|
|
|
128
|
|
|
|
47
|
|
|
|
2,094
|
|
|
|
|
|
|
|
—
|
|
|
|
128
|
|
Other non-cash
expense (income), net(5)
|
|
|
207
|
|
|
|
323
|
|
|
|
(1,522)
|
|
|
|
4,303
|
|
|
|
178
|
|
|
|
3,489
|
|
|
|
(1,574)
|
|
|
|
4,303
|
|
EBITDA excluding
non-cash items
|
|
|
69,335
|
|
|
|
64,993
|
|
|
|
34,141
|
|
|
|
(5,058)
|
|
|
|
(6,855)
|
|
|
|
156,556
|
|
|
|
37,376
|
|
|
|
(5,053)
|
|
EBITDA excluding
non-cash items
|
|
|
69,335
|
|
|
|
64,993
|
|
|
|
34,141
|
|
|
|
(5,058)
|
|
|
|
(6,855)
|
|
|
|
156,556
|
|
|
|
|
|
|
|
37,376
|
|
|
|
(5,053)
|
|
Interest expense,
net(3)
|
|
|
(11,677)
|
|
|
|
(5,290)
|
|
|
|
(4,373)
|
|
|
|
(2,068)
|
|
|
|
(8,523)
|
|
|
|
(31,931)
|
|
|
|
|
|
|
|
(4,944)
|
|
|
|
(2,069)
|
|
Convertible senior
notes interest(6)
|
|
|
—
|
|
|
|
(2,013)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,013
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Adjustments to
derivative instruments recorded in interest expense,
net(3)
|
|
|
(870)
|
|
|
|
(354)
|
|
|
|
(1,571)
|
|
|
|
34
|
|
|
|
—
|
|
|
|
(2,761)
|
|
|
|
|
|
|
|
(1,863)
|
|
|
|
33
|
|
Amortization of debt
financing costs(3)
|
|
|
411
|
|
|
|
280
|
|
|
|
361
|
|
|
|
97
|
|
|
|
1,023
|
|
|
|
2,172
|
|
|
|
|
|
|
|
380
|
|
|
|
97
|
|
Amortization of debt
discount(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
910
|
|
|
|
910
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Benefit (provision)
for current income taxes
|
|
|
2,593
|
|
|
|
(5,729)
|
|
|
|
(84)
|
|
|
|
(2,032)
|
|
|
|
2,176
|
|
|
|
(3,076)
|
|
|
|
|
|
|
|
(84)
|
|
|
|
(2,032)
|
|
Changes in working
capital
|
|
|
(721)
|
|
|
|
6,313
|
|
|
|
(5,450)
|
|
|
|
22,570
|
|
|
|
240
|
|
|
|
22,952
|
|
|
|
(5,615)
|
|
|
|
22,570
|
|
Cash provided by
(used in) operating activities
|
|
|
59,071
|
|
|
|
58,200
|
|
|
|
23,024
|
|
|
|
13,543
|
|
|
|
(9,016)
|
|
|
|
144,822
|
|
|
|
|
|
|
|
25,250
|
|
|
|
13,546
|
|
Changes in working
capital
|
|
|
721
|
|
|
|
(6,313)
|
|
|
|
5,450
|
|
|
|
(22,570)
|
|
|
|
(240)
|
|
|
|
(22,952)
|
|
|
|
|
|
|
|
5,615
|
|
|
|
(22,570)
|
|
Maintenance capital
expenditures
|
|
|
(8,863)
|
|
|
|
(2,191)
|
|
|
|
—
|
|
|
|
(2,318)
|
|
|
|
—
|
|
|
|
(13,372)
|
|
|
|
—
|
|
|
|
(2,318)
|
|
Proportionately
Combined Free Cash flow
|
|
|
50,929
|
|
|
|
49,696
|
|
|
|
28,474
|
|
|
|
(11,345)
|
|
|
|
(9,256)
|
|
|
|
108,498
|
|
|
|
30,865
|
|
|
|
(11,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended September 30, 2017
|
|
|
|
|
|
|
|
|
IMTT
|
|
Atlantic
Aviation
|
|
Contracted
Power(1)
|
|
MIC
Hawaii(1)
|
|
MIC
Corporate
|
|
Proportionately
Combined(2)
|
|
|
|
Contracted
Power
100%
|
|
MIC
Hawaii
100%
|
|
|
($ in Thousands)
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
20,755
|
|
|
|
21,591
|
|
|
|
7,705
|
|
|
|
6,161
|
|
|
|
(19,584)
|
|
|
|
36,628
|
|
|
|
|
|
|
|
7,251
|
|
|
|
6,160
|
|
Interest expense,
net(3)
|
|
|
10,187
|
|
|
|
4,295
|
|
|
|
5,598
|
|
|
|
1,875
|
|
|
|
6,597
|
|
|
|
28,552
|
|
|
|
|
|
|
|
6,281
|
|
|
|
1,877
|
|
Provision (benefit)
for income taxes
|
|
|
14,422
|
|
|
|
11,139
|
|
|
|
6,337
|
|
|
|
4,830
|
|
|
|
(11,181)
|
|
|
|
25,547
|
|
|
|
|
|
|
|
6,337
|
|
|
|
4,830
|
|
Depreciation and
amortization
|
|
|
31,511
|
|
|
|
25,286
|
|
|
|
12,949
|
|
|
|
3,706
|
|
|
|
—
|
|
|
|
73,452
|
|
|
|
|
|
|
|
14,830
|
|
|
|
3,711
|
|
Fees to
Manager-related party
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,954
|
|
|
|
17,954
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension
expense(4)
|
|
|
1,883
|
|
|
|
5
|
|
|
|
—
|
|
|
|
272
|
|
|
|
—
|
|
|
|
2,160
|
|
|
|
|
|
|
|
—
|
|
|
|
272
|
|
Other non-cash
expense (income), net(5)
|
|
|
178
|
|
|
|
1,212
|
|
|
|
(1,913)
|
|
|
|
(3,361)
|
|
|
|
159
|
|
|
|
(3,725)
|
|
|
|
|
|
|
|
(1,914)
|
|
|
|
(3,360)
|
|
EBITDA excluding
non-cash items
|
|
|
78,936
|
|
|
|
63,528
|
|
|
|
30,676
|
|
|
|
13,483
|
|
|
|
(6,055)
|
|
|
|
180,568
|
|
|
|
|
|
|
|
32,785
|
|
|
|
13,490
|
|
EBITDA excluding
non-cash items
|
|
|
78,936
|
|
|
|
63,528
|
|
|
|
30,676
|
|
|
|
13,483
|
|
|
|
(6,055)
|
|
|
|
180,568
|
|
|
|
|
|
|
|
32,785
|
|
|
|
13,490
|
|
Interest expense,
net(3)
|
|
|
(10,187)
|
|
|
|
(4,295)
|
|
|
|
(5,598)
|
|
|
|
(1,875)
|
|
|
|
(6,597)
|
|
|
|
(28,552)
|
|
|
|
|
|
|
|
(6,281)
|
|
|
|
(1,877)
|
|
Convertible senior
notes interest(6)
|
|
|
—
|
|
|
|
(2,012)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,012
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Adjustments to
derivative instruments recorded in interest expense,
net(3)
|
|
|
(524)
|
|
|
|
464
|
|
|
|
(786)
|
|
|
|
23
|
|
|
|
—
|
|
|
|
(823)
|
|
|
|
|
|
|
|
(922)
|
|
|
|
23
|
|
Amortization of debt
financing costs(3)
|
|
|
413
|
|
|
|
284
|
|
|
|
365
|
|
|
|
99
|
|
|
|
988
|
|
|
|
2,149
|
|
|
|
|
|
|
|
379
|
|
|
|
99
|
|
Amortization of debt
discount(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
882
|
|
|
|
882
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Benefit (provision)
for current income taxes
|
|
|
344
|
|
|
|
(1,208)
|
|
|
|
10
|
|
|
|
(1,773)
|
|
|
|
474
|
|
|
|
(2,153)
|
|
|
|
|
|
|
|
9
|
|
|
|
(1,773)
|
|
Changes in working
capital(7)
|
|
|
3,732
|
|
|
|
(1,335)
|
|
|
|
(995)
|
|
|
|
(2,553)
|
|
|
|
(2,934)
|
|
|
|
(4,085)
|
|
|
|
|
|
|
|
(565)
|
|
|
|
(2,554)
|
|
Cash provided by
(used in) operating activities
|
|
|
72,714
|
|
|
|
55,426
|
|
|
|
23,672
|
|
|
|
7,404
|
|
|
|
(11,230)
|
|
|
|
147,986
|
|
|
|
|
|
|
|
25,405
|
|
|
|
7,408
|
|
Changes in working
capital(7)
|
|
|
(3,732)
|
|
|
|
1,335
|
|
|
|
995
|
|
|
|
2,553
|
|
|
|
2,934
|
|
|
|
4,085
|
|
|
|
|
|
|
|
565
|
|
|
|
2,554
|
|
Maintenance capital
expenditures
|
|
|
(8,116)
|
|
|
|
(2,165)
|
|
|
|
—
|
|
|
|
(1,825)
|
|
|
|
—
|
|
|
|
(12,106)
|
|
|
|
|
|
|
|
—
|
|
|
|
(1,825)
|
|
Proportionately
Combined Free Cash Flow
|
|
|
60,866
|
|
|
|
54,596
|
|
|
|
24,667
|
|
|
|
8,132
|
|
|
|
(8,296)
|
|
|
|
139,965
|
|
|
|
|
|
|
|
25,970
|
|
|
|
8,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
IMTT
|
|
Atlantic
Aviation
|
|
Contracted
Power(1)
|
|
MIC
Hawaii(1)
|
|
MIC
Corporate
|
|
Proportionately
Combined(2)
|
|
|
|
Contracted
Power
100%
|
|
MIC
Hawaii
100%
|
|
|
($ in Thousands)
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
61,909
|
|
|
|
78,566
|
|
|
|
32,467
|
|
|
|
(12,346)
|
|
|
|
(59,137)
|
|
|
|
101,459
|
|
|
|
|
|
|
|
35,456
|
|
|
|
(12,344)
|
|
Interest expense,
net(3)
|
|
|
30,349
|
|
|
|
9,601
|
|
|
|
9,619
|
|
|
|
5,246
|
|
|
|
25,532
|
|
|
|
80,347
|
|
|
|
|
|
|
|
10,661
|
|
|
|
5,246
|
|
Provision (benefit)
for income taxes
|
|
|
24,195
|
|
|
|
28,769
|
|
|
|
12,456
|
|
|
|
(4,350)
|
|
|
|
(24,512)
|
|
|
|
36,558
|
|
|
|
|
|
|
|
12,456
|
|
|
|
(4,350)
|
|
Goodwill
impairment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,215
|
|
|
|
—
|
|
|
|
3,215
|
|
|
|
|
|
|
|
—
|
|
|
|
3,215
|
|
Depreciation and
amortization
|
|
|
98,702
|
|
|
|
78,020
|
|
|
|
32,892
|
|
|
|
19,529
|
|
|
|
504
|
|
|
|
229,647
|
|
|
|
|
|
|
|
38,072
|
|
|
|
19,540
|
|
Fees to
Manager-related party
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
36,113
|
|
|
|
36,113
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension
expense(4)
|
|
|
5,737
|
|
|
|
16
|
|
|
|
—
|
|
|
|
383
|
|
|
|
148
|
|
|
|
6,284
|
|
|
|
|
|
|
|
—
|
|
|
|
383
|
|
Other non-cash
expense (income), net(5)
|
|
|
611
|
|
|
|
1,232
|
|
|
|
(5,157)
|
|
|
|
9,548
|
|
|
|
564
|
|
|
|
6,798
|
|
|
(5,152)
|
|
|
|
9,548
|
|
EBITDA excluding
non-cash items
|
|
|
221,503
|
|
|
|
196,204
|
|
|
|
82,277
|
|
|
|
21,225
|
|
|
|
(20,788)
|
|
|
|
500,421
|
|
|
91,493
|
|
|
|
21,238
|
|
EBITDA excluding
non-cash items
|
|
|
221,503
|
|
|
|
196,204
|
|
|
|
82,277
|
|
|
|
21,225
|
|
|
|
(20,788)
|
|
|
|
500,421
|
|
|
|
|
|
|
|
91,493
|
|
|
|
21,238
|
|
Interest expense,
net(3)
|
|
|
(30,349)
|
|
|
|
(9,601)
|
|
|
|
(9,619)
|
|
|
|
(5,246)
|
|
|
|
(25,532)
|
|
|
|
(80,347)
|
|
|
|
|
|
|
|
(10,661)
|
|
|
|
(5,246)
|
|
Convertible senior
notes interest(6)
|
|
|
—
|
|
|
|
(6,038)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,038
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Adjustments to
derivative instruments recorded in interest expense,
net(3)
|
|
|
(6,263)
|
|
|
|
(5,798)
|
|
|
|
(8,665)
|
|
|
|
(732)
|
|
|
|
—
|
|
|
|
(21,458)
|
|
|
|
|
|
|
|
(10,011)
|
|
|
|
(737)
|
|
Amortization of debt
financing costs(3)
|
|
|
1,234
|
|
|
|
842
|
|
|
|
1,091
|
|
|
|
289
|
|
|
|
3,927
|
|
|
|
7,383
|
|
|
|
|
|
|
|
1,138
|
|
|
|
289
|
|
Amortization of debt
discount(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,710
|
|
|
|
2,710
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
(Provision) benefit
for current income taxes
|
|
|
(6,059)
|
|
|
|
(19,469)
|
|
|
|
(154)
|
|
|
|
(3,261)
|
|
|
|
18,284
|
|
|
|
(10,659)
|
|
|
|
|
|
|
|
(154)
|
|
|
|
(3,261)
|
|
Changes in working
capital
|
|
|
9,913
|
|
|
|
16,904
|
|
|
|
(16,823)
|
|
|
|
16,421
|
|
|
|
(17,727)
|
|
|
|
8,688
|
|
|
(17,390)
|
|
|
|
16,420
|
|
Cash provided by
(used in) operating activities
|
|
|
189,979
|
|
|
|
173,044
|
|
|
|
48,107
|
|
|
|
28,696
|
|
|
|
(33,088)
|
|
|
|
406,738
|
|
|
|
|
|
|
|
54,415
|
|
|
|
28,703
|
|
Changes in working
capital
|
|
|
(9,913)
|
|
|
|
(16,904)
|
|
|
|
16,823
|
|
|
|
(16,421)
|
|
|
|
17,727
|
|
|
|
(8,688)
|
|
|
|
|
|
|
|
17,390
|
|
|
|
(16,420)
|
|
Maintenance capital
expenditures
|
|
|
(21,335)
|
|
|
|
(5,300)
|
|
|
|
(330)
|
|
|
|
(5,649)
|
|
|
|
—
|
|
|
|
(32,614)
|
|
|
(440)
|
|
|
|
(5,649)
|
|
Proportionately
Combined Free Cash Flow
|
|
|
158,731
|
|
|
|
150,840
|
|
|
|
64,600
|
|
|
|
6,626
|
|
|
|
(15,361)
|
|
|
|
365,436
|
|
|
|
|
|
|
|
71,365
|
|
|
|
6,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
IMTT
|
|
Atlantic
Aviation
|
|
Contracted
Power(1)
|
|
MIC
Hawaii(1)
|
|
MIC
Corporate
|
|
Proportionately
Combined(2)
|
|
|
|
Contracted
Power
100%
|
|
MIC
Hawaii
100%
|
|
|
($ in Thousands)
(Unaudited)
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
67,184
|
|
|
|
60,225
|
|
|
|
9,858
|
|
|
|
16,009
|
|
|
|
(58,181)
|
|
|
|
95,095
|
|
|
|
|
|
|
|
9,604
|
|
|
|
16,004
|
|
Interest expense,
net(3)
|
|
|
30,707
|
|
|
|
13,648
|
|
|
|
18,177
|
|
|
|
5,789
|
|
|
|
19,419
|
|
|
|
87,740
|
|
|
|
|
|
|
|
20,431
|
|
|
|
5,795
|
|
Provision (benefit)
for income taxes
|
|
|
46,686
|
|
|
|
36,766
|
|
|
|
8,209
|
|
|
|
10,772
|
|
|
|
(37,149)
|
|
|
|
65,284
|
|
|
|
|
|
|
|
8,209
|
|
|
|
10,772
|
|
Depreciation and
amortization
|
|
|
93,826
|
|
|
|
73,894
|
|
|
|
39,390
|
|
|
|
10,908
|
|
|
|
—
|
|
|
|
218,018
|
|
|
|
|
|
|
|
45,031
|
|
|
|
10,922
|
|
Fees to
Manager-related party
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
54,610
|
|
|
|
54,610
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension
expense(4)
|
|
|
5,649
|
|
|
|
15
|
|
|
|
—
|
|
|
|
817
|
|
|
|
—
|
|
|
|
6,481
|
|
|
|
|
|
|
|
—
|
|
|
|
817
|
|
Other non-cash
expense (income), net(5)
|
|
|
315
|
|
|
|
1,252
|
|
|
|
(6,148)
|
|
|
|
3,108
|
|
|
|
534
|
|
|
|
(939)
|
|
|
|
(6,170)
|
|
|
|
3,108
|
|
EBITDA excluding
non-cash items
|
|
|
244,367
|
|
|
|
185,800
|
|
|
|
69,486
|
|
|
|
47,403
|
|
|
|
(20,767)
|
|
|
|
526,289
|
|
|
|
77,105
|
|
|
|
47,418
|
|
EBITDA excluding
non-cash items
|
|
|
244,367
|
|
|
|
185,800
|
|
|
|
69,486
|
|
|
|
47,403
|
|
|
|
(20,767)
|
|
|
|
526,289
|
|
|
|
|
|
|
|
77,105
|
|
|
|
47,418
|
|
Interest expense,
net(3)
|
|
|
(30,707)
|
|
|
|
(13,648)
|
|
|
|
(18,177)
|
|
|
|
(5,789)
|
|
|
|
(19,419)
|
|
|
|
(87,740)
|
|
|
|
|
|
|
|
(20,431)
|
|
|
|
(5,795)
|
|
Convertible senior
notes interest(6)
|
|
|
—
|
|
|
|
(5,769)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,769
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Adjustments to
derivative instruments recorded in interest expense,
net(3)
|
|
|
(257)
|
|
|
|
3,150
|
|
|
|
(1,088)
|
|
|
|
112
|
|
|
|
—
|
|
|
|
1,917
|
|
|
|
|
|
|
|
(1,282)
|
|
|
|
113
|
|
Amortization of debt
financing costs(3)
|
|
|
1,236
|
|
|
|
819
|
|
|
|
1,094
|
|
|
|
303
|
|
|
|
2,969
|
|
|
|
6,421
|
|
|
|
|
|
|
|
1,137
|
|
|
|
303
|
|
Amortization of debt
discount(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,377
|
|
|
|
2,377
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
(Provision) benefit
for current income taxes
|
|
|
(3,069)
|
|
|
|
(5,810)
|
|
|
|
7
|
|
|
|
(5,265)
|
|
|
|
5,645
|
|
|
|
(8,492)
|
|
|
|
|
|
|
|
6
|
|
|
|
(5,265)
|
|
Changes in working
capital(7)
|
|
|
(12,413)
|
|
|
|
(6,667)
|
|
|
|
(9,089)
|
|
|
|
(13,072)
|
|
|
|
(6,691)
|
|
|
|
(47,932)
|
|
|
|
(8,771)
|
|
|
|
(13,093)
|
|
Cash provided by
(used in) operating activities
|
|
|
199,157
|
|
|
|
157,875
|
|
|
|
42,233
|
|
|
|
23,692
|
|
|
|
(30,117)
|
|
|
|
392,840
|
|
|
|
|
|
|
|
47,764
|
|
|
|
23,681
|
|
Changes in working
capital(7)
|
|
|
12,413
|
|
|
|
6,667
|
|
|
|
9,089
|
|
|
|
13,072
|
|
|
|
6,691
|
|
|
|
47,932
|
|
|
|
|
|
|
|
8,771
|
|
|
|
13,093
|
|
Maintenance capital
expenditures
|
|
|
(13,563)
|
|
|
|
(5,071)
|
|
|
|
(22)
|
|
|
|
(4,406)
|
|
|
|
—
|
|
|
|
(23,062)
|
|
|
|
(22)
|
|
|
|
(4,406)
|
|
Proportionately
Combined Free Cash Flow
|
|
|
198,007
|
|
|
|
159,471
|
|
|
|
51,300
|
|
|
|
32,358
|
|
|
|
(23,426)
|
|
|
|
417,710
|
|
|
|
56,513
|
|
|
|
32,368
|
|
|
(1) Represents MIC's
proportionately combined interests in the businesses comprising
these reportable segments.
|
|
(2) The sum of the
amounts attributable to MIC in proportion to its
ownership.
|
|
(3) Interest expense,
net, includes adjustments to derivative instruments, non-cash
amortization of deferred financing fees and non-cash amortization
of debt discount related to the 2.00% Convertible Senior Notes due
October 2023.
|
|
(4) Pension expense
primarily consists of interest cost, expected return on plan assets
and amortization of actuarial and performance gains and
losses.
|
|
(5) Other non-cash
expense (income), net, primarily includes non-cash amortization of
tolling liabilities, unrealized gains (losses) on commodity hedges
and non-cash gains (losses) related to the disposal of assets.
Other non-cash expense (income), net, also includes the write-down
of our investment in CPI for the quarter and nine months ended
September 30, 2018. See "Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) excluding non-cash items,
Free Cash Flow and Proportionately Combined Metrics" above for
further discussion.
|
|
(6) Represents the
cash interest expense reclassified from MIC Corporate to Atlantic
Aviation related to the 2.00% Convertible Senior Notes due October
2023, proceeds of which were used to pay down a portion of Atlantic
Aviation's credit facility in October 2016.
|
|
(7) Conformed to
current period presentation for the adoption of ASU No. 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash. See
Note 2, "Basis of Presentation", in our Notes to Consolidated
Condensed Financial Statements in Part I of Form 10-Q for the
quarter ended September 30, 2018.
|
View original
content:http://www.prnewswire.com/news-releases/mic-reports-third-quarter-2018-financial-results-announces-cash-dividend-of-1-00-per-share-300741679.html
SOURCE Macquarie Infrastructure Corporation