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Macquarie Infrastructure Corporation Reports Fourth Quarter and Full-Year 2015 Financial Results, Increases Cash Dividend
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Fourth quarter cash dividend of $1.15 per share declared
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2015 dividend growth of 14.7% exceeds guidance
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Expected 2016 dividend growth reaffirmed
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2015 Adjusted Free Cash Flow increases 17.7% to $5.71 per share
Macquarie Infrastructure Corporation (NYSE:MIC) announced its financial
results for the fourth quarter and full-year 2015 including an
authorization of the payment of a cash dividend for the fourth quarter
of 2015 of $1.15 per share ($4.60 per share annualized). For the full
year 2015, dividends paid by MIC increased by 14.7% compared with 2014.
MIC’s fourth quarter 2015 dividend will be paid on March 8, 2016 to
shareholders of record on March 3, 2016. MIC has increased its cash
dividend in each of the last nine quarters.
“We are pleased to have grown our dividend in excess of our guidance,”
said James Hooke, chief executive officer of MIC. “What is most pleasing
is that the increase has been underpinned by substantial growth in the
Free Cash Flow generated by our businesses. That growth has been
achieved despite the volatility in markets broadly and reinforces a
basic premise of infrastructure – namely, that it is an inherently more
stable asset class.”
MIC manages its businesses and investments to optimize Free Cash Flow, a
non-GAAP measure it defines as Cash from Operations less maintenance (or
sustaining) capital expenditures and adjusted for changes in working
capital. The Company also elected to exclude the benefit of $0.09 per
share associated with a tax refund received in the fourth quarter of
2015. As a result, MIC generated $1.18 and $5.71 per share in Adjusted
Free Cash Flow for the quarter and full-year 2015, respectively, a
decrease of $0.10 per share, or 7.8%, for the fourth quarter and an
increase of $0.86 per share, or 17.7%, for the year over the prior
comparable periods.
More than 100% of the $0.10 per share decrease in Adjusted Free Cash
Flow generation in the fourth quarter of 2015 was attributable to the
timing of maintenance capital expenditures at Hawaii Gas and
International-Matex Tank Terminals (IMTT). The changes in timing of
capital spending were announced previously.
MIC also accelerated the timing of maintenence capital expenditures at
Atlantic Aviation into 2015. The amount deployed in the fourth quarter
was consistent with the Company's forecast.
MIC reiterated its prior guidance with respect to dividend growth in
2016 and expects to distribute between $5.00 and $5.10 per share in cash
for the full year. “Given our pipeline of growth projects, and assuming
the continued stable performance of our businesses, we are confident in
our ability to deliver value to our shareholders in the form of an
attractive rate of growth in our dividend,” said Hooke.
MIC’s dividend guidance contemplates issuance of additional shares upon
the reinvestment of base management fees payable to Macquarie
Infrastructure Management (USA) Inc. It also assumes the payment of
minimal federal income taxes and the deployment of growth capital in
amounts similar to years past.
The Company indicated that it has a pipeline of more than $200.0 million
in approved growth projects and that it expects to complete the majority
of these in 2016. Hooke noted that the Company believes it can fund the
pipeline of growth without accessing either the debt or equity capital
markets for additional resources.
MIC’s IMTT business produced financial results in the fourth quarter
that were consistent with the first nine months of the year. Top line
growth was offset by a decrease in spill response activity at IMTT’s OMI
Environmental Solutions subsidiary, reduced product heating due to
relatively warmer weather and reduced rail services revenue as a result
of a reduction in the movement of heavy oil products by train. Foreign
exchange rates were also a negative factor relative to the small portion
of the overall results derived from Canadian operations.
Revenue from firm commitments increased in the quarter and full year
periods driven by continued strong demand for IMTT’s services. On a
constant currency basis, revenue from firm commitments would have
increased by 2.3% in 2015 compared with 2014.
Refined petroleum product storage and handling represents approximately
55% of IMTT’s total revenue. In essence, the business functions as a
distribution hub for these products. Crude and asphalt storage
represents approximately 3% of IMTT’s total revenue and IMTT reported a
decrease in services provided in support of these products in the fourth
quarter and full year primarily as a result of a reduction in product
shipments by rail from Canada. The remainder of IMTT’s revenue is
generated under contracts related to the production, use or distribution
of chemicals, vegetable and animal oils and other services.
“The performance of IMTT in both the quarter and the full year periods
reflects the downstream services nature of the business overall, as well
as the extent to which it is uncorrelated with the exploration and
production (E&P) portion of the oil industry,” said Hooke. “While
upstream E&P companies are under considerable financial pressure, the
vast majority of the hydrocarbons stored at IMTT have already been
refined. Given the refined product focus, IMTT saw no signs of
counter-party distress during 2015.”
MIC’s Atlantic Aviation business continued to deliver solid growth year
over year in the fourth quarter reflective of ongoing increases in
general aviation (GA) flight activity in the U.S. and the overall
attractiveness of the Atlantic Aviation network of fixed base operations
(FBO). Atlantic Aviation posted increases in same store (excluding
acquisitions completed during the year) and total gross profit for the
quarter of 6.4% and 6.8%, respectively. For the full year, same store
and total gross profit increased 8.3% and 13.1%, respectively.
“The attractiveness of the Atlantic Aviation network and its
safety-focused value proposition contributed to a very strong financial
result in both the fourth quarter and full year periods,” noted Hooke.
“We believe these attributes have enabled Atlantic Aviation to
significantly outperform relative to industry fundamentals such as
flight movements - a trend that, under current economic conditions, we
would expect to continue.”
The businesses comprising MIC’s Contracted Power & Energy (CP&E) segment
underperformed relative to expectations during both the quarter and full
year periods. A reduced level of both insolation and wind compared with
historical averages resulted in a lower than expected level of power
generation by the renewable portions of the segment. Although the fourth
quarter is typically a softer quarter for peak power demand, relatively
mild weather in the Northeast saw the uncontracted portion of the power
generating capacity of the Bayonne Energy Center (BEC) dispatched less
frequently than the Company had expected.
Comparisons with prior periods are not meaningful in the CP&E segment as
a result of the acquisition of a wind power facility in December of 2014
and the acquisition of BEC in April of 2015. The segment generated gross
profit of $28.1 million and $104.9 million in the quarter and full year
ended December 31, 2015, respectively, and EBITDA of $18.7 million and
$68.2 million, respectively.
“The warmer winter meant that the uncontracted power portion (37.5% of
capacity) of BEC’s capacity was not called upon in the fourth quarter to
the extent forecasted when we acquired the business,” said Hooke. “The
financial impact of the underperformance of both the renewable portfolio
and BEC versus expectations was modest – approximately $5.0 million of
EBITDA for the year or less than 1.0% of MIC’s adjusted proportionately
combined EBITDA – and we expect that normalized weather and the steps we
are taking to bring lower cost gas to BEC via the pipeline we announced
in January will contribute to segment performance consistent with our
expectations going forward.”
MIC’s Hawaii Gas subsidiary generated financial results for 2015 that
reflected an approximately 2% increase in the volume of gas sold
compared with 2014 on an underlying basis and were consistent with the
improvement in the economy of Hawaii generally. Unemployment in Hawaii
remained low, tourism was strong and the local economy continued to
expand – all of which contributed to the consistent performance of the
business.
Hawaii Gas reported gross profit for the quarter and year ended December
31, 2015 of $14.8 million and $76.9 million, down 19.8% and up 1.7%,
respectively, on the prior corresponding periods. Excluding the impact
of unrealized losses on propane hedges extending into 2019, gross profit
would have increased by 4.9% for the quarter and 4.1% for the full year.
“The core business of Hawaii Gas – providing safe, reliable and cost
effective energy solutions to residents and businesses of Hawaii –
performed well,” said Hooke. “We continue to make progress, albeit
slowly, on our initiatives to broaden the suite of services of Hawaii
Gas to include supporting important initiatives such as the development
of renewable sources of energy in Hawaii.”
Overview of Proportionately Combined Measures at December 31, 2015
Revenue – MIC’s
proportionately combined revenue for the fourth quarter and full year
2015 decreased 1.5% and increased 9.4% versus the prior comparable
periods to $397.7 million and $1,625.8 million, respectively. The full
year increase reflects the contribution from acquisitions concluded
during 2014 and 2015 and growth in the volume of products sold,
partially offset by a reduction in the cost of fuel sold by Atlantic
Aviation and gas sold by Hawaii Gas. The decline in revenue in the
fourth quarter reflects a reduction in the cost of fuel in 2015 compared
with 2014. The lower cost of aviation fuel and gas are generally passed
through to customers of MIC’s businesses resulting in a reduction in
revenue and a corresponding reduction in cost of goods sold/services
provided. Either or both of volume or margin increases will be reflected
in improved gross profit.
Gross Profit – Because of the pass
through nature of fluctuations in energy input costs, up or down, gross
profit is effectively the “top line” to which MIC manages its
businesses. Gross profit generated in the fourth quarter and full year
in 2015 increased 11.8% and 32.1% versus the prior comparable periods to
$224.0 million for the quarter and $908.5 million for the year. The
increase was attributable to:
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Contributions from the IMTT acquisition in July 2014;
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Storage pricing and an increase in storage utilization at IMTT,
partially offset by reduced spill response activity, tank heating,
rail services and foreign exchange rates for the quarter and full year;
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Increases in GA flight activity for the quarter and full year and
contributions from sites acquired by Atlantic Aviation during 2014 and
2015;
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Acquisitions of BEC in April 2015 and an additional wind power
facility in December 2014, partially offset by the sale of District
Energy in the third quarter of 2014; and,
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An increase in the volume of gas sold by Hawaii Gas.
Earnings Before Interest Taxes Depreciation and
Amortization (EBITDA), Excluding Non-Cash Items –
Proportionately combined EBITDA increased 16.3% to $151.1 million and
43.0% to $614.1 million in the quarter and full year 2015 periods,
respectively. The increases reflect higher gross profit resulting from
improved performance and contributions from acquisitions completed in
each of 2014 and 2015, offset by higher SG&A expenses attributable to:
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Consolidation of the expenses of IMTT for the full year;
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Incremental costs associated with acquired power facilities; and,
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incremental expenses related to the acquisition of additional FBOs,
higher labor and benefits, rent, repairs and maintenance and
professional services fees at Atlantic Aviation; partially offset by,
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Improvements in cost control at IMTT and the absence of corporate
costs incurred in 2014 related to the IMTT acquisition; and,
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Reductions in promotional and legal costs at Hawaii Gas.
See “Use of Non-GAAP Measures” below for MIC’s definition of EBITDA
excluding Non-Cash Items and further information on MIC’s use of this
measure and see the reconciliation of Proportionately Combined Net
Income (Loss) to EBITDA excluding Non-Cash Items attached to this
release.
Cash Interest – Excluding non-cash
derivatives gains and losses, proportionately combined cash interest
expense increased 19.6% to $26.9 million in the fourth quarter and
110.4% to $159.3 million in the full year 2015 periods. The increase in
cash interest expense was attributable to:
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$50.6 million of swap breakage costs;
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The consolidation of IMTT; and,
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Incremental debt associated with acquisitions of a wind power facility
and BEC; and,
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Interest on holding company convertible notes and on a revolving
credit facility issued in mid-2014.
Cash Taxes – Proportionately
combined cash taxes were a benefit of $7.0 million and $6.4 million in
the fourth quarter and full year 2015 periods, respectively, primarily
as a result of fees incurred during the year and $6.9 million of tax
refund received in the fourth quarter of 2015 relating to the election
of bonus depreciation for 2014. Based on current forecasts of cash
operating expenses including management fees, non-cash depreciation and
amortization together with other tax strategies, MIC does not expect to
incur a material federal income tax liability until late 2019.
Maintenance Capital Expenditures –
Proportionately combined maintenance capital expenditures increased by
128.5% to $30.3 million in the fourth quarter and by 58.8% to $68.6
million in the full year 2015 period. The increase was attributable to:
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An increase in maintenance capital expenditures at IMTT in the fourth
quarter relative to a curtailment of spending in the prior comparable
period and an overall weighting of total maintenance capital spending
of $37.7 million to the second half of the year in 2015;
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Planned increases in capital spending at Atlantic Aviation, based on
the better than expected performance of the business, designed to
create additional financial flexibility at the business in the future;
and
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Planned increases in capital spending at Hawaii Gas, primarily in the
fourth quarter of 2015.
Free Cash Flow – Proportionately
Combined Free Cash Flow increased 11.0% to $100.9 million in the fourth
quarter and 49.7% to $392.6 million for the full year period primarily
as a result of the consolidation of IMTT, and the acquisitions of BEC
and wind power facilities, together with improved financial performance
of MIC’s businesses generally. Adjusted proportionately combined Free
Cash Flow increased 45.8% to $445.5 million in the year to date period.
Adjusted proportionately combined Free Cash Flow excludes:
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$50.6 million of swap breakage costs (as a result of the successful
refinancing of the majority of the debt across its businesses, MIC
believes that swap breakage fees incurred over the next several years,
if any, will be minimal);
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$9.3 million of transaction expenses related to BEC primarily in the
first half of 2015;
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A tax refund of $6.9 million received in the fourth quarter of 2015
relating to the election of bonus depreciation for 2014; and,
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$43.3 million of transaction expenses and voluntary pension
contributions primarily related to IMTT and Hawaii Gas in the third
quarter of 2014.
MIC regards Free Cash Flow as an important tool in assessing the
performance of its capital intensive, cash generative businesses.
Proportionately combined Free Cash Flow refers to the consolidated Free
Cash Flow generated by MIC’s businesses other than non-controlling
interests in the partnerships in solar and wind power facilities, after
holding company costs. See “Use of Non-GAAP Measures” below for MIC’s
definition of Free Cash Flow and further information and see the
reconciliation of Proportionately Combined Net Income (Loss) to EBITDA
excluding Non-Cash Items attached to this release.
MIC’s reported increase in adjusted Free Cash Flow was partially offset
on a per share basis by an increase in the number of shares outstanding.
The increase in share count reflects the impact of capital raised in
connection with the acquisitions of IMTT and BEC and the reinvestment in
shares of base fees and a portion of the performance fees earned by the
Company’s Manager during 2015. No performance fee was payable for the
fourth quarter of 2015.
Overview of Consolidated Results for the Fourth Quarter and Full Year
Revenue – MIC’s consolidated
revenue decreased by 0.9% to $401.4 million in the fourth quarter and
increased 21.3% to $1,639.3 million for the full year compared with the
prior comparable periods. The full year increase reflects the
contribution from acquisitions during 2014 and 2015 and growth in the
volume of products sold, partially offset by a reduction in the cost of
fuel sold by Atlantic Aviation and gas sold by Hawaii Gas. The decline
in revenue in the fourth quarter reflects a reduction in the cost of
fuel in 2015 compared with 2014. The lower cost of aviation fuel and gas
are passed through to customers of MIC’s businesses resulting in a
reduction in revenue and a corresponding reduction in cost of goods
sold/services provided.
Expenses – Selling, general
and administrative expenses increased in the fourth quarter and full
year by 5.0% to $79.2 million and by 14.9% to $304.9 million,
respectively. The increases are the result of acquisitions completed in
2014 and 2015, partially offset by the absence of acquisition costs
related to IMTT incurred in 2014 and reductions in SG&A, primarily at
IMTT, in 2015.
Fees payable to MIC’s external manager increased 19.8% to $17.0 million
in the fourth quarter of 2015 as a result of the Company’s increased
market capitalization compared with the fourth quarter in 2014. Fees
payable to the manager for the full year increased 111.1% to $355.0
million as a result of the increase in market capitalization and
performance fees incurred in the first and second quarters. All of the
fees incurred were settled with the issuance of new shares, not cash,
other than $67.8 million paid in cash in the third quarter and $67.8
million that was deferred until July of 2016, and $65.0 million in the
third quarter of 2014.
Net Income (Loss) – MIC
reported net income of $32.9 million in the fourth quarter and a net
loss of $108.5 million for the full year 2015 compared with net income
of $21.0 million and $1,042.0 million in the comparable periods in 2014.
The substantial net income the Company generated in 2014 reflects
primarily a non-cash gain from acquisition/sale of business related to
the IMTT acquisition and the sale of a district energy business in that
year.
Use of Non-GAAP Measures
MIC reports EBITDA excluding non-cash items on a consolidated and
operating segment basis and reconciles each to consolidated net income
(loss). EBITDA excluding non-cash items is a measure relied upon by
management in evaluating the performance of its businesses and
investments. EBITDA excluding non-cash items is defined as earnings
before interest, taxes, depreciation and amortization and non-cash
items, which includes impairments, gains and losses on derivatives and
adjustments for certain other items reflected in the statement of
operations. EBITDA excluding non-cash items also excludes any base
management and performance fees, if any, whether paid in cash or stock.
MIC believes that EBITDA excluding non-cash items provides additional
insight into the performance of its operating businesses, relative to
each other and to similar businesses without regard to capital
structure, and into their ability to service or reduce debt, fund
capital expenditures and/or support distributions to the holding company.
MIC also reports Free Cash Flow and Proportionately Combined Free Cash
Flow, as defined below, on both a consolidated and an operating segment
basis as a means of assessing the amount of cash generated by its
businesses and as a supplement to other information provided in
accordance with GAAP, and reconciles each to cash from operating
activities. MIC believes that reporting Free Cash Flow provides
additional insight into its ability to deploy cash as GAAP measures,
such as net income (loss) and cash from operating activities, do not
reflect all of the items that management considers in estimating the
amount of cash generated by its operating businesses. MIC defines Free
Cash Flow as cash from operating activities, which includes cash paid
for interest, taxes and pension contributions, less maintenance capital
expenditures, and includes principal repayments on capital lease
obligations used to fund maintenance capital expenditures, and excludes
changes in working capital.
Free Cash Flow does not fully reflect MIC’s ability to freely deploy
generated cash, as it does not reflect required payments on indebtedness
and other fixed obligations or the other cash items excluded when
calculating Free Cash Flow. Free Cash Flow may be calculated in a
different manner by other companies, which limits its usefulness as a
comparative measure. Free Cash Flow should be used as a supplemental
measure and not in lieu of MIC’s financial results as reported under
GAAP.
MIC may report certain financial metrics on a proportionately combined
basis including proportionately combined gross profit, proportionately
combined EBITDA excluding non-cash items, proportionately combined cash
interest, proportionately combined cash taxes, proportionately combined
maintenance capital expenditures, proportionately combined Free Cash
Flow including adjusted proportionately combined Free Cash Flow,
proportionately combined Free Cash Flow per share, proportionately
combined growth capital expenditures and proportionately combined net
debt. The Company believes that such measures provide investors and
management with additional insight into the financial results and cash
generated on the basis of its varied ownership interests in its
businesses and investments for the reporting periods.
Proportionately combined metrics used by MIC may be calculated in a
different manner by other companies and may limit their usefulness as a
comparative measure. Proportionately combined metrics should be used as
a supplement to and not in lieu of financial results reported in
accordance with GAAP.
The following tables summarize MIC’s financial performance on a
proportionately combined basis for the quarter and full year periods
ended December 31, 2015, and for the prior comparable periods.
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Quarter Ended December 31, 2015
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IMTT
100%(1)
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Atlantic
Aviation
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Contracted
Power and
Energy(2)
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Hawaii
Gas
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MIC
Corporate
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Proportionately
Combined(3)
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Contracted
Power and
Energy
100%
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Gross profit
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82,069
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101,952
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25,118
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14,822
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N/A
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223,961
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28,124
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EBITDA excluding non-cash items
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75,154
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48,049
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15,987
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14,641
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(2,727
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151,104
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18,734
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Free cash flow
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47,885
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33,096
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10,509
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8,390
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974
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100,854
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12,382
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Quarter Ended December 31, 2014
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IMTT
100%(1)
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Atlantic
Aviation
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Contracted
Power and
Energy(2)
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Hawaii
Gas
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MIC
Corporate
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Proportionately
Combined(3)
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Contracted
Power and
Energy
100%
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Gross profit
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83,919
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95,458
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2,394
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18,489
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N/A
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200,260
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3,364
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EBITDA excluding non-cash items
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74,915
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44,194
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176
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13,796
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(3,200
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129,881
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657
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Free cash flow
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57,210
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29,482
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(1,072
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10,940
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(5,732
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90,828
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(988
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Year Ended December 31, 2015
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IMTT
100%(1)
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Atlantic
Aviation
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Contracted
Power and
Energy(2)
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Hawaii
Gas
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MIC
Corporate
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Proportionately
Combined(3)
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Contracted
Power and
Energy
100%
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Gross profit
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327,317
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410,155
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94,095
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76,899
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N/A
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908,466
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104,896
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EBITDA excluding non-cash items
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302,067
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203,617
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58,507
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60,083
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(10,138
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614,136
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68,156
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Free cash flow
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194,570
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153,023
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16,005
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44,118
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(15,080
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392,636
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21,989
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Year Ended December 31, 2014
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IMTT
50%(4)
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IMTT
100%(1)
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Atlantic
Aviation
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Contracted
Power and
Energy(2)
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Hawaii
Gas
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MIC
Corporate
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Proportionately
Combined(3)
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IMTT
100%(5)
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Contracted
Power and
Energy
100%
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Gross profit
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85,727
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147,333
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362,564
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16,639
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75,609
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N/A
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687,872
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318,786
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25,922
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EBITDA excluding non-cash items
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78,712
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127,751
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167,931
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12,914
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56,956
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(14,903
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429,361
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285,175
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22,723
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Free cash flow
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31,324
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83,577
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125,475
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5,103
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35,902
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(19,035
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262,346
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146,225
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10,480
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____________
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N/A- Not applicable.
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(1)
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Represents our 100% ownership interest in IMTT subsequent to July
16, 2014. IMTT owns 66.7% of its Quebec marine terminal in Canada.
The remainder is owned by one other party. IMTT consolidates the
results of the Quebec terminal in its financial statements and
adjusts the portion that it does not own through noncontrolling
interest. The above table shows 100% of IMTT, including the 33.3%
portion of the Quebec terminal that it does not own, which is not
significant. Both MIC’s and IMTT’s EBITDA excluding non-cash items
and Free Cash Flow reflects 100% of the results of the Quebec
terminal.
|
|
(2)
|
|
Proportionately combined Free Cash Flow for Contracted Power and
Energy is equal to MIC's controlling ownership interest in its
solar and wind power facilities and the district energy business,
up to August 21, 2014, date of sale. As of April 1, 2015,
Contracted Power and Energy also includes 100% of BEC, a gas-fired
power facility.
|
|
(3)
|
|
Proportionately combined Free Cash Flow is equal to the sum of
Free Cash Flow attributable to MIC's ownership interest in each of
its operating businesses and MIC Corporate.
|
|
(4)
|
|
Our proportionate interest in IMTT prior to the acquisition of the
remaining 50% interest on July 16, 2014.
|
|
(5)
|
|
Represents 100% of IMTT as a stand-alone business.
|
|
|
|
|
Factors Affecting Business Financial Performance in 2015
International Matex Tank Terminals
-
Revenue decreased in 2015 versus 2014 as a result of decreased spill
response activity at OMI Environmental Solutions Inc., reduced heating
revenue, and a reduction in rail services provided by IMTT. These were
offset by improvements in firm commitments including increased
utilization rates of 94.9% at year end 2015 compared with 92.5% at
year end 2014, and price increases generally. On a constant currency
basis, firm commitments would have increased 2.3% in 2015 compared
with 2014.
-
Costs controls and efficiencies achieved since the IMTT acquisition
contributed to a decrease in expenses of 12.3%. Savings have been
achieved in insurance and procurement, with the application of
technology and improved controls generally. The reductions were
partially offset by expenses incurred in connection with ensuring IMTT
was compliant with Sarbanes-Oxley (SOX) rules.
-
The weighted average remaining life of firm commitments increased in
the fourth quarter to 2.62 years at December 31, 2015 from 2.33 years
at the end of the third quarter in spite of an increase in volatility
in commodity prices that had resulted in a renewal of storage
contracts with shorter durations during the first nine months of the
year.
Atlantic Aviation
-
Acquisitions of FBOs at Orlando, FL, Salt Lake City, UT and Carlsbad,
CA were completed during the year. Operations at Hartford, CT were
sold and an exchange of FBOs at Deer Valley, AZ and El Paso, TX with
another FBO operator was also completed. The transactions were
consistent with Atlantic Aviation’s strategy of opportunistically
building out its network and of exiting some markets in favor of
reinvesting in markets it believes have superior growth prospects.
-
The weighted average remaining lease life across Atlantic Aviation’s
portfolio of FBOs increased to 19.6 years at December 31, 2015 from
18.8 years at December 31, 2014 as a result of acquisitions of leases
and lease renewals with durations greater than the average.
-
The Federal Aviation Administration reported an increase in general
aviation flight activity of 1.2% in 2015 compared with 2014. The
increase was consistent with trends that have been in evidence since
the first quarter in 2009. Traffic at airports at which Atlantic
Aviation operates increased by 1.6% in 2015 compared with 2014.
Contracted Power and Energy
-
Solar and wind resources were less than forecast during 2015 resulting
in underperformance versus expectations on the part of the solar and
wind power facilities in the portfolio. Resource availability was not
outside of historically normal ranges, however, and the Company
expects these to normalize over time.
-
Warmer than historically normal weather in the Northeast in the fourth
quarter resulted in a less frequent dispatch of power from BEC
compared with the Company’s acquisition case.
-
The Company recovered $6.3 million as an adjustment to working capital
in connection with the acquisition BEC. The recovery was recorded as
an adjustment to the purchase price of BEC in the fourth quarter.
Hawaii Gas
-
The volume of gas sold by Hawaii Gas increased 2.0% in 2015 compared
with 2014 after adjusting for the amount of gas in customer tanks. The
generally healthy economy in Hawaii, as reflected in strong tourism in
particular, resulted in increased consumption of gas by commercial
customers including resort hotels.
-
Excluding the impact of unrealized gains (losses) on commodity hedges,
gross profit per therm increased in 2015 primarily as a result of
decline in the cost of commodity inputs.
-
Following the year end, Hawaii Gas completed the refinance of an $80.0
million term loan and $60.0 million revolving credit facility and
extended the maturities of these facilities to February 2021 from
August 2017.
Corporate and Other
-
Fees payable to MIC’s manager were larger in each of the fourth
quarter and full year periods as a result of the increased market
capitalization of the Company in 2015 compared with 2014. Performance
fees incurred in 2015 were larger than in 2014.
-
Selling, general and administrative costs were lower in both the
fourth quarter and full year periods ended December 31, 2015 as a
result of reduced professional service fees, primarily those
associated with acquisitions.
-
Interest expense was higher in the quarter and full year periods
primarily as a result of the holding company convertible notes being
outstanding from July 16, 2014.
Conference Call and WEBCAST
When: MIC has scheduled a conference call for 8:00 a.m. Eastern Time on
Tuesday, February 23, 2016 during which it will review the Company’s
results and answer questions from analysts and investors.
How: To listen to the conference call, please dial +1(650) 521-5252 or
+1(877) 852-2928 at least 10 minutes prior to the scheduled start time.
A webcast of the call will be accessible via the MIC website at www.macquarie.com/mic.
Please allow extra time prior to the call to visit the site and download
the necessary software to listen to the webcast.
Slides: MIC will prepare materials in support of its conference call
presentation. The materials will be available for downloading from the
Company’s website the morning of February 23, 2016 prior to the
conference call. A link to the materials will be located on the homepage
of the MIC website.
Replay: For interested individuals unable to participate in the live
conference call, a replay will be available after 2:00 p.m. on February
23, 2016 through midnight on February 29, 2016, at +1(404) 537-3406, or
+1(855) 859-2056 Passcode: 41460927. An online archive of the webcast
will be available on the MIC website for one year following the call.
MIC-G
About Macquarie Infrastructure Corporation
Macquarie Infrastructure Corporation owns, operates and invests in a
diversified group of infrastructure businesses providing basic services
to customers in the United States. Its businesses consist of a bulk
liquid terminals business, International-Matex Tank Terminals, an
airport services business, Atlantic Aviation, a gas processing and
distribution business, Hawaii Gas, and several entities comprising a
Contracted Power and Energy segment. MIC is managed by a wholly-owned
subsidiary of the Macquarie Group. For additional information, please
visit the Macquarie Infrastructure Corporation website at www.macquarie.com/mic.
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 report are subject to a number of
risks and uncertainties, some of which are beyond MIC’s control
including, among other things: changes in general economic or business
conditions; its ability to service, comply with the terms of and
refinance debt, successfully integrate and manage acquired businesses,
retain or replace qualified employees, manage growth, make and finance
future acquisitions, and implement its strategy; risks associated with
development, investment and expansion in the power industry; its shared
decision-making with co-investors over investments including the
distribution of dividends; its regulatory environment establishing rate
structures and monitoring quality of service; demographic trends, the
political environment, the economy, tourism, construction and
transportation costs, air travel, environmental costs and risks; fuel
and gas and other commodity costs; its ability to recover increases in
costs from customers, reliance on sole or limited source suppliers,
risks or conflicts of interests involving its relationship with the
Macquarie Group and changes in U.S. federal tax law.
MIC’s actual results, performance, prospects or opportunities could
differ materially from those expressed in or implied by the
forward-looking statements. Additional risks of which MIC is not
currently aware could also cause its actual results to differ. In light
of these risks, uncertainties and assumptions, you should not place
undue reliance on any forward-looking statements. The forward-looking
events discussed in this release may not occur. These forward-looking
statements are made as of the date of this release. MIC undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
“Macquarie Group” refers to the Macquarie Group of companies, which
comprises Macquarie Group Limited and its worldwide subsidiaries and
affiliates. Macquarie Infrastructure Corporation is not an authorized
deposit-taking institution for the purposes of the Banking Act 1959
(Commonwealth of Australia) and its obligations do not represent
deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583
542 (MBL). MBL does not guarantee or otherwise provide assurance in
respect of the obligations of Macquarie Infrastructure Corporation.
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
($ in Thousands, Except Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
22,394
|
|
$
|
48,014
|
|
Restricted cash
|
|
|
18,946
|
|
|
21,282
|
|
Accounts receivable, less allowance for doubtful accounts
|
|
|
|
|
|
|
|
of $1,690 and $771, respectively
|
|
|
95,597
|
|
|
96,885
|
|
Inventories
|
|
|
29,489
|
|
|
28,080
|
|
Prepaid expenses
|
|
|
21,690
|
|
|
14,276
|
|
Deferred income taxes
|
|
|
23,355
|
|
|
25,412
|
|
Other
|
|
|
28,453
|
|
|
22,941
|
|
Total current assets
|
|
|
239,924
|
|
|
256,890
|
|
Property, equipment, land and leasehold improvements, net
|
|
|
4,116,163
|
|
|
3,362,585
|
|
Investment in unconsolidated business
|
|
|
8,274
|
|
|
9,773
|
|
Goodwill
|
|
|
2,017,211
|
|
|
1,996,259
|
|
Intangible assets, net
|
|
|
934,892
|
|
|
959,634
|
|
Deferred financing costs, net of accumulated amortization
|
|
|
46,669
|
|
|
32,037
|
|
Other
|
|
|
15,695
|
|
|
8,010
|
|
Total assets
|
|
$
|
7,378,828
|
|
$
|
6,625,188
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Due to Manager - related party
|
|
$
|
73,317
|
|
$
|
4,858
|
|
Accounts payable
|
|
|
56,688
|
|
|
49,733
|
|
Accrued expenses
|
|
|
78,527
|
|
|
77,248
|
|
Current portion of long-term debt
|
|
|
40,099
|
|
|
27,655
|
|
Fair value of derivative instruments
|
|
|
19,628
|
|
|
32,111
|
|
Other
|
|
|
40,531
|
|
|
32,727
|
|
Total current liabilities
|
|
|
308,790
|
|
|
224,332
|
|
Long-term debt, net of current portion
|
|
|
2,793,194
|
|
|
2,364,866
|
|
Deferred income taxes
|
|
|
840,191
|
|
|
904,108
|
|
Fair value of derivative instruments
|
|
|
15,698
|
|
|
27,724
|
|
Tolling agreements - noncurrent
|
|
|
68,150
|
|
|
-
|
|
Other
|
|
|
150,363
|
|
|
133,990
|
|
Total liabilities
|
|
|
4,176,386
|
|
|
3,655,020
|
|
Commitments and contingencies
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
($ in Thousands, Except Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock ($0.001 par value; 100,000,000 authorized; no
shares issued and
outstanding at December 31, 2015)(1)
|
|
$
|
-
|
|
$
|
-
|
|
Special stock ($0.001 par value; 100 authorized; 100 shares issued
and outstanding
at December 31, 2015)(1)
|
|
|
-
|
|
|
-
|
|
Common stock ($0.001 par value; 500,000,000 authorized; 80,006,744
shares issued
and outstanding at December 31, 2015)(1)
|
|
|
80
|
|
|
-
|
|
LLC interests (no par value; 71,089,590 LLC interests issued and
outstanding at
December 31, 2014)(1)
|
|
|
-
|
|
|
1,942,745
|
|
Additional paid in capital(1)
|
|
|
2,317,421
|
|
|
21,447
|
|
Accumulated other comprehensive loss
|
|
|
(23,295)
|
|
|
(21,550)
|
|
Retained earnings
|
|
|
735,984
|
|
|
844,521
|
|
Total stockholders’ equity
|
|
|
3,030,190
|
|
|
2,787,163
|
|
Noncontrolling interests
|
|
|
172,252
|
|
|
183,005
|
|
Total equity
|
|
|
3,202,442
|
|
|
2,970,168
|
|
Total liabilities and equity
|
|
$
|
7,378,828
|
|
$
|
6,625,188
|
|
_________________
|
|
|
|
|
|
|
|
(1) See Note 10, "Stockholders' Equity", for discussions on
preferred stock, special stock, common stock, LLC interests and
additional paid in capital.
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
($ in Thousands, Except Share and Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
$
|
1,288,501
|
|
$
|
1,064,682
|
|
$
|
770,360
|
|
Product revenue
|
|
|
350,749
|
|
|
284,400
|
|
|
267,096
|
|
Financing and equipment lease income
|
|
-
|
|
|
1,836
|
|
|
3,563
|
|
Total revenue
|
|
|
1,639,250
|
|
|
1,350,918
|
|
|
1,041,019
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
551,029
|
|
|
546,609
|
|
|
434,177
|
|
Cost of product sales
|
|
|
168,954
|
|
|
192,881
|
|
|
185,843
|
|
Selling, general and administrative
|
|
304,862
|
|
|
265,254
|
|
|
210,060
|
|
Fees to Manager - related party
|
|
354,959
|
|
|
168,182
|
|
|
85,367
|
|
Depreciation
|
|
|
215,243
|
|
|
98,442
|
|
|
39,150
|
|
Amortization of intangibles
|
|
|
101,435
|
|
|
42,695
|
|
|
34,651
|
|
Loss from customer contract termination
|
|
-
|
|
|
1,269
|
|
|
5,906
|
|
Loss on disposal of assets
|
|
|
2,093
|
|
|
1,279
|
|
|
226
|
|
Total operating expenses
|
|
|
1,698,575
|
|
|
1,316,611
|
|
|
995,380
|
|
Operating (loss) income
|
|
|
(59,325)
|
|
|
34,307
|
|
|
45,639
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
55
|
|
|
112
|
|
|
204
|
|
Interest expense(1)
|
|
|
(123,079)
|
|
|
(73,196)
|
|
|
(37,044)
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
(90)
|
|
|
(2,472)
|
|
Equity in earnings and amortization charges of investee
|
|
-
|
|
|
26,391
|
|
|
39,115
|
|
Gain from acquisition/divestiture of businesses(2)
|
|
-
|
|
|
1,027,054
|
|
|
-
|
|
Other income, net
|
|
|
3,381
|
|
|
331
|
|
|
681
|
|
Net (loss) income before income taxes
|
|
(178,968)
|
|
|
1,014,909
|
|
|
46,123
|
|
Benefit (provision) for income taxes(3)
|
|
65,161
|
|
|
24,374
|
|
|
(18,043)
|
|
Net (loss) income
|
|
$
|
(113,807)
|
|
$
|
1,039,283
|
|
$
|
28,080
|
|
Less: net loss attributable to noncontrolling interests
|
|
(5,270)
|
|
|
(2,745)
|
|
|
(3,174)
|
|
Net (loss) income attributable to MIC
|
$
|
(108,537)
|
|
$
|
1,042,028
|
|
$
|
31,254
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share attributable to MIC
|
$
|
(1.39)
|
|
$
|
16.54
|
|
$
|
0.61
|
|
Weighted average number of shares outstanding: basic
|
|
77,997,826
|
|
|
62,990,312
|
|
|
51,381,003
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share attributable to MIC
|
$
|
(1.39)
|
|
$
|
16.10
|
|
$
|
0.61
|
|
Weighted average number of shares outstanding: diluted
|
|
77,997,826
|
|
|
64,925,565
|
|
|
51,396,146
|
|
Cash dividends declared per share
|
$
|
4.46
|
|
$
|
3.8875
|
|
$
|
3.35
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest expense includes losses on derivative instruments of
$30.5 million, $21.3 million and $7.5 million for the
years ended December 31, 2015, 2014 and 2013, respectively, of
which net losses of $856,000 and $1.4 million
were reclassified from accumulated other comprehensive loss for
the years ended December 31, 2014 and
2013, respectively.
|
|
(2) Gain from acquisition/divestiture of businesses represents the
gain of $948.1 million from IMTT Acquisition from the
remeasuring to fair value of the Company’s previous 50% ownership
interest and the gain of $78.9 million from the
sale of the Company’s interest in the district energy business.
|
|
(3) Includes $340,000 and $568,000 of benefit for income taxes from
accumulated other comprehensive loss
reclassifications for the years ended December 31, 2014 and 2013,
respectively.
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
($ in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(113,807)
|
|
|
$
|
1,039,283
|
|
|
$
|
28,080
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of property and equipment
|
|
|
215,243
|
|
|
|
102,816
|
|
|
|
45,876
|
|
Amortization of intangible assets
|
|
|
101,435
|
|
|
|
42,695
|
|
|
|
34,651
|
|
Equity in earnings and amortization charges of investee
|
|
|
-
|
|
|
|
(26,391)
|
|
|
|
(39,115)
|
|
Equity distributions from investee
|
|
|
-
|
|
|
|
25,330
|
|
|
|
39,115
|
|
Gain from acquisition/divestiture of businesses
|
|
|
-
|
|
|
|
(1,027,181)
|
|
|
|
-
|
|
Amortization of debt financing costs
|
|
|
9,075
|
|
|
|
5,376
|
|
|
|
3,874
|
|
Adjustments to derivative instruments
|
|
|
(47,208)
|
|
|
|
(567)
|
|
|
|
(5,138)
|
|
Fees to Manager- related party
|
|
|
287,139
|
|
|
|
103,182
|
|
|
|
85,367
|
|
Equipment lease receivable, net
|
|
|
-
|
|
|
|
2,805
|
|
|
|
3,807
|
|
Deferred taxes
|
|
|
|
(58,734)
|
|
|
|
(27,942)
|
|
|
|
13,295
|
|
Other non-cash expense, net
|
|
|
6,253
|
|
|
|
9,559
|
|
|
|
8,777
|
|
Changes in other assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
722
|
|
|
|
35,858
|
|
|
|
(28,303)
|
|
Accounts receivable
|
|
|
|
5,418
|
|
|
|
1,645
|
|
|
|
(4,239)
|
|
Inventories
|
|
|
|
(84)
|
|
|
|
4,779
|
|
|
|
(4,662)
|
|
Prepaid expenses and other current assets
|
|
|
(6,964)
|
|
|
|
5,448
|
|
|
|
1,062
|
|
Due to Manager - related party
|
|
|
(33)
|
|
|
|
(11)
|
|
|
|
29
|
|
Accounts payable and accrued expenses
|
|
|
(8,002)
|
|
|
|
(12,446)
|
|
|
|
(23,796)
|
|
Income taxes payable
|
|
|
|
(5,926)
|
|
|
|
288
|
|
|
|
1,037
|
|
Pension contribution
|
|
|
|
-
|
|
|
|
(26,960)
|
|
|
|
(3,150)
|
|
Other, net
|
|
|
|
(3,371)
|
|
|
|
(5,951)
|
|
|
|
(1,450)
|
|
Net cash provided by operating activities
|
|
|
381,156
|
|
|
|
251,615
|
|
|
|
155,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of businesses and investments, net of cash acquired
|
|
|
(266,895)
|
|
|
|
(1,222,266)
|
|
|
|
(28,953)
|
|
Proceeds from sale of business, net of cash divested
|
|
|
-
|
|
|
|
265,295
|
|
|
|
-
|
|
Return of investment in unconsolidated business
|
|
|
-
|
|
|
|
12,319
|
|
|
|
371
|
|
Purchases of property and equipment
|
|
|
(194,148)
|
|
|
|
(123,946)
|
|
|
|
(111,208)
|
|
Change in restricted cash
|
|
|
|
10,559
|
|
|
|
-
|
|
|
|
-
|
|
Other, net
|
|
|
|
1,668
|
|
|
|
(208)
|
|
|
|
154
|
|
Net cash used in investing activities
|
|
|
(448,816)
|
|
|
|
(1,068,806)
|
|
|
|
(139,636)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
|
|
($ in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
$
|
2,486,569
|
|
|
$
|
412,884
|
|
|
$
|
561,253
|
|
Payment of long-term debt
|
|
|
(2,554,552)
|
|
|
|
(548,431)
|
|
|
|
(748,668)
|
|
Proceeds from the issuance of shares
|
|
492,433
|
|
|
|
765,052
|
|
|
|
355,890
|
|
Dividends paid to common stockholders
|
|
(341,560)
|
|
|
|
(240,535)
|
|
|
|
(128,970)
|
|
Contributions received from noncontrolling interests
|
|
532
|
|
|
|
-
|
|
|
|
73,612
|
|
Distributions paid to noncontrolling interests
|
|
(2,546)
|
|
|
|
(62,538)
|
|
|
|
(2,366)
|
|
Offering and equity raise costs paid
|
|
(16,984)
|
|
|
|
(25,600)
|
|
|
|
(16,313)
|
|
Debt financing costs paid
|
|
|
(23,816)
|
|
|
|
(15,142)
|
|
|
|
(19,699)
|
|
Proceeds from the issuance of convertible senior notes
|
|
-
|
|
|
|
350,000
|
|
|
|
-
|
|
Change in restricted cash
|
|
|
5,166
|
|
|
|
(999)
|
|
|
|
3,810
|
|
Payment of capital lease obligations
|
|
(2,346)
|
|
|
|
(2,269)
|
|
|
|
(2,033)
|
|
Net cash provided by financing activities
|
|
42,896
|
|
|
|
632,422
|
|
|
|
76,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(856)
|
|
|
|
(590)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
(25,620)
|
|
|
|
(185,359)
|
|
|
|
91,997
|
|
Cash and cash equivalents, beginning of year
|
|
48,014
|
|
|
|
233,373
|
|
|
|
141,376
|
|
Cash and cash equivalents, end of year
|
$
|
22,394
|
|
|
$
|
48,014
|
|
|
$
|
233,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Accrued equity offering costs
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
298
|
|
Accrued financing costs
|
$
|
3
|
|
|
$
|
112
|
|
|
$
|
479
|
|
Accrued purchases of property and equipment
|
$
|
23,396
|
|
|
$
|
8,122
|
|
|
$
|
13,950
|
|
Acquisition of equipment through capital leases
|
$
|
398
|
|
|
$
|
3,744
|
|
|
$
|
1,320
|
|
Issuance of shares to Manager
|
$
|
218,645
|
|
|
$
|
101,345
|
|
|
$
|
132,641
|
|
Issuance of shares to independent directors
|
$
|
750
|
|
|
$
|
750
|
|
|
$
|
640
|
|
Issuance of shares for acquisition of business
|
$
|
-
|
|
|
$
|
115,000
|
|
|
$
|
-
|
|
Conversion of convertible senior notes to shares
|
$
|
25
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Conversion of LLC interests to common stock(1)
|
$
|
79
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Conversion of LLC interests to additional paid in capital(1)
|
$
|
2,428,334
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Conversion of construction loan to term loan
|
$
|
-
|
|
|
$
|
60,360
|
|
|
$
|
24,749
|
|
Distributions payable to noncontrolling interests
|
$
|
33
|
|
|
$
|
441
|
|
|
$
|
276
|
|
Taxes paid, net
|
|
$
|
6,654
|
|
|
$
|
19,704
|
|
|
$
|
3,710
|
|
Interest paid
|
|
$
|
108,896
|
|
|
$
|
70,894
|
|
|
$
|
38,956
|
|
______________
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Note 10, "Stockholders' Equity", for discussion on common
stock, LLC interests and additional paid in capital.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS -
MD&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
Year Ended
December 31,
|
|
|
Change
Favorable/(Unfavorable)
|
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
2015
|
|
|
2014
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
$
|
314,863
|
|
$
|
339,059
|
|
|
(24,196)
|
|
(7.1)
|
|
$
|
1,288,501
|
|
$
|
1,064,682
|
|
|
223,819
|
|
21.0
|
|
Product revenue
|
|
|
86,491
|
|
|
66,083
|
|
|
20,408
|
|
30.9
|
|
|
350,749
|
|
|
284,400
|
|
|
66,349
|
|
23.3
|
|
Financing and equipment lease income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
1,836
|
|
|
(1,836)
|
|
(100.0)
|
|
Total revenue
|
|
|
401,354
|
|
|
405,142
|
|
|
(3,788)
|
|
(0.9)
|
|
|
1,639,250
|
|
|
1,350,918
|
|
|
288,332
|
|
21.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
130,842
|
|
|
159,682
|
|
|
28,840
|
|
18.1
|
|
|
551,029
|
|
|
546,609
|
|
|
(4,420)
|
|
(0.8)
|
|
Cost of product sales
|
|
|
43,545
|
|
|
44,230
|
|
|
685
|
|
1.5
|
|
|
168,954
|
|
|
192,881
|
|
|
23,927
|
|
12.4
|
|
Gross profit
|
|
|
226,967
|
|
|
201,230
|
|
|
25,737
|
|
12.8
|
|
|
919,267
|
|
|
611,428
|
|
|
307,839
|
|
50.3
|
|
Selling, general and administrative
|
|
|
79,244
|
|
|
75,457
|
|
|
(3,787)
|
|
(5.0)
|
|
|
304,862
|
|
|
265,254
|
|
|
(39,608)
|
|
(14.9)
|
|
Fees to Manager - related party
|
|
|
17,009
|
|
|
14,192
|
|
|
(2,817)
|
|
(19.8)
|
|
|
354,959
|
|
|
168,182
|
|
|
(186,777)
|
|
(111.1)
|
|
Depreciation
|
|
|
52,950
|
|
|
37,902
|
|
|
(15,048)
|
|
(39.7)
|
|
|
215,243
|
|
|
98,442
|
|
|
(116,801)
|
|
(118.6)
|
|
Amortization of intangibles
|
|
|
17,779
|
|
|
13,105
|
|
|
(4,674)
|
|
(35.7)
|
|
|
101,435
|
|
|
42,695
|
|
|
(58,740)
|
|
(137.6)
|
|
Loss from customer contract termination
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
1,269
|
|
|
1,269
|
|
100.0
|
|
Loss on disposal of assets
|
|
|
1,121
|
|
|
393
|
|
|
(728)
|
|
(185.2)
|
|
|
2,093
|
|
|
1,279
|
|
|
(814)
|
|
(63.6)
|
|
Total operating expenses
|
|
|
168,103
|
|
|
141,049
|
|
|
(27,054)
|
|
(19.2)
|
|
|
978,592
|
|
|
577,121
|
|
|
(401,471)
|
|
(69.6)
|
|
Operating income (loss)
|
|
|
58,864
|
|
|
60,181
|
|
|
(1,317)
|
|
(2.2)
|
|
|
(59,325)
|
|
|
34,307
|
|
|
(93,632)
|
|
NM
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
21
|
|
|
7
|
|
|
14
|
|
200.0
|
|
|
55
|
|
|
112
|
|
|
(57)
|
|
(50.9)
|
|
Interest expense(1)
|
|
|
(14,455)
|
|
|
(24,674)
|
|
|
10,219
|
|
41.4
|
|
|
(123,079)
|
|
|
(73,196)
|
|
|
(49,883)
|
|
(68.1)
|
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
(90)
|
|
|
90
|
|
100.0
|
|
Equity in earnings and amortization charges of investee
|
|
-
|
|
|
312
|
|
|
(312)
|
|
(100.0)
|
|
|
-
|
|
|
26,391
|
|
|
(26,391)
|
|
(100.0)
|
|
Gain from acquisition/divestiture of businesses
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
1,027,054
|
|
|
(1,027,054)
|
|
(100.0)
|
|
Other income (expense), net
|
|
|
17
|
|
|
(3,004)
|
|
|
3,021
|
|
100.6
|
|
|
3,381
|
|
|
331
|
|
|
3,050
|
|
NM
|
|
Net income (loss) before income taxes
|
|
|
44,447
|
|
|
32,822
|
|
|
11,625
|
|
35.4
|
|
|
(178,968)
|
|
|
1,014,909
|
|
|
(1,193,877)
|
|
(117.6)
|
|
(Provision) benefit for income taxes
|
|
|
(12,564)
|
|
|
(14,117)
|
|
|
1,553
|
|
11.0
|
|
|
65,161
|
|
|
24,374
|
|
|
40,787
|
|
167.3
|
|
Net income (loss)
|
|
$
|
31,883
|
|
$
|
18,705
|
|
|
13,178
|
|
70.5
|
|
$
|
(113,807)
|
|
$
|
1,039,283
|
|
|
(1,153,090)
|
|
(111.0)
|
|
Less: net loss attributable to noncontrolling interests
|
|
(1,040)
|
|
|
(2,264)
|
|
|
(1,224)
|
|
(54.1)
|
|
|
(5,270)
|
|
|
(2,745)
|
|
|
2,525
|
|
92.0
|
|
Net income (loss) attributable to MIC
|
|
$
|
32,923
|
|
$
|
20,969
|
|
|
11,954
|
|
57.0
|
|
$
|
(108,537)
|
|
$
|
1,042,028
|
|
|
(1,150,565)
|
|
(110.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest expense includes gains on derivative instruments of
$9.4 million and losses on derivative instruments of $30.5 million
for the quarter and year ended December 31, 2015, respectively.
For the quarter and year ended December 31, 2014, interest
expense includes losses on derivative instruments of $8.2 million
and $21.3 million, respectively.
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE
TO MIC TO
EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM
OPERATING ACTIVITIES TO FREE
CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
Year Ended
December 31,
|
|
|
Change
Favorable/(Unfavorable)
|
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
2015
|
|
2014
|
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MIC(1)
|
|
$
|
32,923
|
|
$
|
20,969
|
|
|
|
|
|
|
$
|
(108,537)
|
|
$
|
1,042,028
|
|
|
|
|
|
|
Interest expense, net(2)
|
|
|
14,434
|
|
|
24,667
|
|
|
|
|
|
|
|
123,024
|
|
|
73,084
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
|
12,564
|
|
|
14,117
|
|
|
|
|
|
|
|
(65,161)
|
|
|
(24,374)
|
|
|
|
|
|
|
Depreciation(3)
|
|
|
52,950
|
|
|
37,902
|
|
|
|
|
|
|
|
215,243
|
|
|
98,442
|
|
|
|
|
|
|
Depreciation - cost of services(3)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
4,374
|
|
|
|
|
|
|
Amortization of intangibles(4)
|
|
|
17,779
|
|
|
13,105
|
|
|
|
|
|
|
|
101,435
|
|
|
42,695
|
|
|
|
|
|
|
Gain from acquisition/divestiture of businesses
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
(1,027,181)
|
|
|
|
|
|
|
Equity in earnings and amortization charges of investee
|
|
-
|
|
|
(312)
|
|
|
|
|
|
|
|
-
|
|
|
(26,391)
|
|
|
|
|
|
|
Equity distributions from investee(5)
|
|
|
-
|
|
|
244
|
|
|
|
|
|
|
|
-
|
|
|
25,330
|
|
|
|
|
|
|
Fees to Manager- related party(6)
|
|
|
17,009
|
|
|
14,192
|
|
|
|
|
|
|
|
354,959
|
|
|
168,182
|
|
|
|
|
|
|
Other non-cash expense, net (7)
|
|
|
6,192
|
|
|
5,478
|
|
|
|
|
|
|
|
2,822
|
|
|
9,355
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
$
|
153,851
|
|
$
|
130,362
|
|
|
23,489
|
|
18.0
|
|
$
|
623,785
|
|
$
|
385,544
|
|
|
238,241
|
|
61.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
$
|
153,851
|
|
$
|
130,362
|
|
|
|
|
|
|
$
|
623,785
|
|
$
|
385,544
|
|
|
|
|
|
|
Interest expense, net(2)
|
|
|
(14,434)
|
|
|
(24,667)
|
|
|
|
|
|
|
|
(123,024)
|
|
|
(73,084)
|
|
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense(2)
|
(15,700)
|
|
|
829
|
|
|
|
|
|
|
|
1,509
|
|
|
(3,108)
|
|
|
|
|
|
|
Amortization of debt financing costs(2)
|
|
|
2,318
|
|
|
909
|
|
|
|
|
|
|
|
9,075
|
|
|
5,376
|
|
|
|
|
|
|
Interest rate swap breakage fees
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
(50,556)
|
|
|
-
|
|
|
|
|
|
|
Equipment lease receivable, net
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
2,805
|
|
|
|
|
|
|
Provision/benefit for income taxes, net of changes in deferred
taxes(8)
|
7,025
|
|
|
(3,247)
|
|
|
|
|
|
|
|
6,427
|
|
|
(3,568)
|
|
|
|
|
|
|
Pension contribution
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
(26,960)
|
|
|
|
|
|
|
Changes in working capital(6)
|
|
|
(6,823)
|
|
|
(46,934)
|
|
|
|
|
|
|
|
(86,060)
|
|
|
(35,390)
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
|
126,237
|
|
|
57,252
|
|
|
|
|
|
|
|
381,156
|
|
|
251,615
|
|
|
|
|
|
|
Changes in working capital(6)
|
|
|
6,823
|
|
|
46,934
|
|
|
|
|
|
|
|
86,060
|
|
|
35,390
|
|
|
|
|
|
|
Maintenance capital expenditures
|
|
|
(30,333)
|
|
|
(13,274)
|
|
|
|
|
|
|
|
(68,596)
|
|
|
(25,520)
|
|
|
|
|
|
|
Free cash flow
|
|
$
|
102,727
|
|
$
|
90,912
|
|
|
11,815
|
|
13.0
|
|
$
|
398,620
|
|
$
|
261,485
|
|
|
137,135
|
|
52.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net income (loss) attributable to MIC excludes net loss
attributable to noncontrolling interests of $1.0 million and $5.3
million for the quarter and year ended December 31, 2015,
respectively, and net loss attributable to noncontrolling
interests of $2.3 million and $2.7 million for the quarter and
year ended December 31, 2014, respectively.
|
|
(2) Interest expense, net, includes adjustment to derivative
instruments and non-cash amortization of deferred financing fees.
For the year ended December 31, 2015, interest expense also
includes non-cash write-off of deferred financing costs related to
the May 2015 refinancing at IMTT.
|
|
(3) Depreciation − cost of services includes depreciation expense
for our previously owned district energy business, a component of
CP&E segment, which is reported in cost of services in our
consolidated statements of operations. Depreciation and
Depreciation − cost of services does not include
acquisition-related step-up depreciation expense of $4.2 million
for the year ended December 31, 2014 in connection with our
previous 50% investment in IMTT, which is reported in equity in
earnings and amortization charges of investee in our consolidated
statements of operations.
|
|
(4) Amortization of intangibles does not include
acquisition-related step-up amortization expense of $185,000 for
the year ended December 31, 2014 in connection with our previous
50% investment in IMTT, which is reported in equity in earnings
and amortization charges of investee in our consolidated
statements of operations.
|
|
(5) Equity distributions from investee in the above table includes
distributions we received only up to our share of the earnings
recorded in the calculation for EBITDA excluding non-cash items.
|
|
(6) In July 2015, our Board requested, and our Manager agreed,
that $67.8 million of the performance fee for the quarter ended
June 30, 2015 be settled in cash in July 2015 to minimize
dilution. The remaining $67.8 million obligation was deferred
until July 2016. At July 2016, the MIC Board will consider whether
the remaining obligation may be settled in cash or shares, or a
combination thereof. In October 2014, our Board requested, and our
Manager agreed, that $65.0 million of the performance fee for the
quarter ended September 30, 2014 be settled in cash using the
proceeds from the sale of the district energy business to minimize
dilution. The remainder of the fee of $51.6 million was reinvested
in additional shares of MIC.
|
|
(7) Other non-cash expense, net, primarily includes non-cash
adjustments related to pension expense, adjustments to
noncontrolling interest, amortization of tolling liabilities,
unrealized gains (losses) on commodity hedges and any non-cash
gains (losses) on disposal of assets. For the year ended December
31, 2014, other non-cash expense, net, also included non-cash loss
from customer contract terminations related to the district energy
business, which was sold on August 21, 2014.
|
|
(8) Includes $6.9 million of tax refund received in the fourth
quarter of 2015 relating to the election of bonus depreciation for
2014.
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO
PROPORTIONATELY COMBINED FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
Year Ended
December 31,
|
|
Change
Favorable/(Unfavorable)
|
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow- Consolidated basis
|
|
$
|
102,727
|
|
$
|
90,912
|
|
|
11,815
|
|
13.0
|
|
$
|
398,620
|
|
$
|
261,485
|
|
137,135
|
|
52.4
|
|
Equity distributions from investee(1)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
(25,086)
|
|
|
|
|
|
100% of CP&E Free Cash Flow included in consolidated Free Cash Flow
|
|
(12,382)
|
|
|
988
|
|
|
|
|
|
|
|
(21,989)
|
|
|
(10,480)
|
|
|
|
|
|
MIC's share of IMTT Free Cash Flow(2)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
31,324
|
|
|
|
|
|
MIC's share of CP&E Free Cash Flow
|
|
|
10,509
|
|
|
(1,072)
|
|
|
|
|
|
|
|
16,005
|
|
|
5,103
|
|
|
|
|
|
Free Cash Flow- Proportionately Combined basis
|
|
$
|
100,854
|
|
$
|
90,828
|
|
|
10,026
|
|
11.0
|
|
$
|
392,636
|
|
$
|
262,346
|
|
130,290
|
|
49.7
|
|
_________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Equity distributions from investee represent the portion of
distributions received from IMTT that are recorded in cash from
operating activities prior to the IMTT Acquisition on July 16, 2014.
|
|
(2) Represents our proportionate share of IMTT's Free Cash Flow
prior to the IMTT Acquisition on July 16, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING
NON-CASH
ITEMS AND CASH FROM OPERATING ACTIVITIES TO
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMTT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
|
|
|
Year Ended
December 31,
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
134,160
|
|
144,951
|
|
(10,791)
|
|
(7.4)
|
|
|
550,041
|
|
567,467
|
|
(17,426)
|
|
(3.1)
|
|
Cost of services(1)
|
|
52,091
|
|
61,032
|
|
8,941
|
|
14.6
|
|
|
222,724
|
|
248,681
|
|
25,957
|
|
10.4
|
|
Gross profit
|
|
82,069
|
|
83,919
|
|
(1,850)
|
|
(2.2)
|
|
|
327,317
|
|
318,786
|
|
8,531
|
|
2.7
|
|
General and administrative expenses(1)
|
|
8,994
|
|
12,036
|
|
3,042
|
|
25.3
|
|
|
33,903
|
|
44,018
|
|
10,115
|
|
23.0
|
|
Depreciation and amortization
|
|
32,217
|
|
28,062
|
|
(4,155)
|
|
(14.8)
|
|
|
132,002
|
|
93,488
|
|
(38,514)
|
|
(41.2)
|
|
Operating income
|
|
40,858
|
|
43,821
|
|
(2,963)
|
|
(6.8)
|
|
|
161,412
|
|
181,280
|
|
(19,868)
|
|
(11.0)
|
|
Interest expense, net(2)
|
|
(5,164)
|
|
(5,735)
|
|
571
|
|
10.0
|
|
|
(37,378)
|
|
(27,239)
|
|
(10,139)
|
|
(37.2)
|
|
Other income, net
|
|
262
|
|
982
|
|
(720)
|
|
(73.3)
|
|
|
2,212
|
|
2,665
|
|
(453)
|
|
(17.0)
|
|
Provision for income taxes
|
|
(14,719)
|
|
(17,945)
|
|
3,226
|
|
18.0
|
|
|
(51,520)
|
|
(64,033)
|
|
12,513
|
|
19.5
|
|
Noncontrolling interest
|
|
(56)
|
|
(199)
|
|
143
|
|
71.9
|
|
|
(586)
|
|
(527)
|
|
(59)
|
|
(11.2)
|
|
Net income(3)
|
|
21,181
|
|
20,924
|
|
257
|
|
1.2
|
|
|
74,140
|
|
92,146
|
|
(18,006)
|
|
(19.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to EBITDA excluding non-cash
items and cash provided by operating activities to Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income(3)
|
|
21,181
|
|
20,924
|
|
|
|
|
|
|
74,140
|
|
92,146
|
|
|
|
|
|
Interest expense, net(2)
|
|
5,164
|
|
5,735
|
|
|
|
|
|
|
37,378
|
|
27,239
|
|
|
|
|
|
Provision for income taxes
|
|
14,719
|
|
17,945
|
|
|
|
|
|
|
51,520
|
|
64,033
|
|
|
|
|
|
Depreciation and amortization
|
|
32,217
|
|
28,062
|
|
|
|
|
|
|
132,002
|
|
93,488
|
|
|
|
|
|
Other non-cash expense, net(4)
|
|
1,873
|
|
2,249
|
|
|
|
|
|
|
7,027
|
|
8,269
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
75,154
|
|
74,915
|
|
239
|
|
0.3
|
|
|
302,067
|
|
285,175
|
|
16,892
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
75,154
|
|
74,915
|
|
|
|
|
|
|
302,067
|
|
285,175
|
|
|
|
|
|
Interest expense, net(2)
|
|
(5,164)
|
|
(5,735)
|
|
|
|
|
|
|
(37,378)
|
|
(27,239)
|
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense(2)
|
(5,052)
|
|
(3,168)
|
|
|
|
|
|
|
(2,912)
|
|
(15,335)
|
|
|
|
|
|
Amortization of debt financing costs(2)
|
|
407
|
|
(593)
|
|
|
|
|
|
|
2,344
|
|
2,050
|
|
|
|
|
|
Interest rate swap breakage fees
|
|
-
|
|
-
|
|
|
|
|
|
|
(31,385)
|
|
-
|
|
|
|
|
|
Provision for income taxes, net of changes in deferred taxes
|
|
(314)
|
|
(1,428)
|
|
|
|
|
|
|
(470)
|
|
(34,250)
|
|
|
|
|
|
Pension contribution
|
|
-
|
|
-
|
|
|
|
|
|
|
-
|
|
(20,000)
|
|
|
|
|
|
Changes in working capital
|
|
(1,593)
|
|
2,309
|
|
|
|
|
|
|
(11,260)
|
|
(413)
|
|
|
|
|
|
Cash provided by operating activities
|
|
63,438
|
|
66,300
|
|
|
|
|
|
|
221,006
|
|
189,988
|
|
|
|
|
|
Changes in working capital
|
|
1,593
|
|
(2,309)
|
|
|
|
|
|
|
11,260
|
|
413
|
|
|
|
|
|
Maintenance capital expenditures
|
|
(17,146)
|
|
(6,781)
|
|
|
|
|
|
|
(37,696)
|
|
(44,176)
|
|
|
|
|
|
Free cash flow
|
|
47,885
|
|
57,210
|
|
(9,325)
|
|
(16.3)
|
|
|
194,570
|
|
146,225
|
|
48,345
|
|
33.1
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes transactional costs in connection with the IMTT
Acquisition for the year ended December 31, 2014.
|
|
(2) Interest expense, net, includes adjustments to
derivative instruments and non-cash amortization of deferred
financing fees. For the year ended December 31, 2015, interest
expense also includes non-cash write-off of deferred financing
costs related to the May 2015 refinancing.
|
|
(3) Corporate allocation expense, intercompany fees and the tax
effect have been excluded from the above table as they are
eliminated on consolidation.
|
|
(4) Other non-cash expense, net, primarily includes non-cash
adjustments related to pension expense and adjustments to
noncontrolling interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Aviation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
|
Year Ended
December 31,
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
Revenues
|
|
180,703
|
|
194,108
|
|
(13,405)
|
|
(6.9)
|
|
|
738,460
|
|
779,261
|
|
(40,801)
|
|
(5.2)
|
|
Cost of services
|
|
78,751
|
|
98,650
|
|
19,899
|
|
20.2
|
|
|
328,305
|
|
416,697
|
|
88,392
|
|
21.2
|
|
Gross profit
|
|
101,952
|
|
95,458
|
|
6,494
|
|
6.8
|
|
|
410,155
|
|
362,564
|
|
47,591
|
|
13.1
|
|
Selling, general and administrative expenses
|
|
53,836
|
|
51,206
|
|
(2,630)
|
|
(5.1)
|
|
|
207,062
|
|
194,804
|
|
(12,258)
|
|
(6.3)
|
|
Depreciation and amortization
|
|
22,332
|
|
16,745
|
|
(5,587)
|
|
(33.4)
|
|
|
126,351
|
|
63,778
|
|
(62,573)
|
|
(98.1)
|
|
Loss on disposal of assets
|
|
1,121
|
|
393
|
|
(728)
|
|
(185.2)
|
|
|
2,093
|
|
1,279
|
|
(814)
|
|
(63.6)
|
|
Operating income
|
|
24,663
|
|
27,114
|
|
(2,451)
|
|
(9.0)
|
|
|
74,649
|
|
102,703
|
|
(28,054)
|
|
(27.3)
|
|
Interest expense, net(1)
|
|
(3,609)
|
|
(13,012)
|
|
9,403
|
|
72.3
|
|
|
(35,735)
|
|
(40,618)
|
|
4,883
|
|
12.0
|
|
Other expense, net
|
|
(123)
|
|
(47)
|
|
(76)
|
|
(161.7)
|
|
|
(28)
|
|
(25)
|
|
(3)
|
|
(12.0)
|
|
Provision for income taxes
|
|
(8,641)
|
|
(7,095)
|
|
(1,546)
|
|
(21.8)
|
|
|
(16,081)
|
|
(25,096)
|
|
9,015
|
|
35.9
|
|
Net income(2)
|
|
12,290
|
|
6,960
|
|
5,330
|
|
76.6
|
|
|
22,805
|
|
36,964
|
|
(14,159)
|
|
(38.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to EBITDA excluding non-cash
items and cash provided by operating activities to Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income(2)
|
|
12,290
|
|
6,960
|
|
|
|
|
|
|
22,805
|
|
36,964
|
|
|
|
|
|
Interest expense, net(1)
|
|
3,609
|
|
13,012
|
|
|
|
|
|
|
35,735
|
|
40,618
|
|
|
|
|
|
Provision for income taxes
|
|
8,641
|
|
7,095
|
|
|
|
|
|
|
16,081
|
|
25,096
|
|
|
|
|
|
Depreciation and amortization
|
|
22,332
|
|
16,745
|
|
|
|
|
|
|
126,351
|
|
63,778
|
|
|
|
|
|
Other non-cash expense, net(3)
|
|
1,177
|
|
382
|
|
|
|
|
|
|
2,645
|
|
1,475
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
48,049
|
|
44,194
|
|
3,855
|
|
8.7
|
|
|
203,617
|
|
167,931
|
|
35,686
|
|
21.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
48,049
|
|
44,194
|
|
|
|
|
|
|
203,617
|
|
167,931
|
|
|
|
|
|
Interest expense, net(1)
|
|
(3,609)
|
|
(13,012)
|
|
|
|
|
|
|
(35,735)
|
|
(40,618)
|
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense(1)
|
|
(4,310)
|
|
4,747
|
|
|
|
|
|
|
3,617
|
|
9,459
|
|
|
|
|
|
Amortization of debt financing costs(1)
|
|
803
|
|
810
|
|
|
|
|
|
|
3,221
|
|
3,138
|
|
|
|
|
|
Provision for income taxes, net of changes in deferred taxes
|
|
652
|
|
(1,981)
|
|
|
|
|
|
|
(242)
|
|
(4,549)
|
|
|
|
|
|
Changes in working capital
|
|
(2,927)
|
|
3,850
|
|
|
|
|
|
|
(2,635)
|
|
6,775
|
|
|
|
|
|
Cash provided by operating activities
|
|
38,658
|
|
38,608
|
|
|
|
|
|
|
171,843
|
|
142,136
|
|
|
|
|
|
Changes in working capital
|
|
2,927
|
|
(3,850)
|
|
|
|
|
|
|
2,635
|
|
(6,775)
|
|
|
|
|
|
Maintenance capital expenditures
|
|
(8,489)
|
|
(5,276)
|
|
|
|
|
|
|
(21,455)
|
|
(9,886)
|
|
|
|
|
|
Free cash flow
|
|
33,096
|
|
29,482
|
|
3,614
|
|
12.3
|
|
|
153,023
|
|
125,475
|
|
27,548
|
|
22.0
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest expense, net, includes adjustments to derivative
instruments and non-cash amortization of deferred financing fees.
|
|
(2) Corporate allocation expense, intercompany fees and the tax
effect have been excluded from the above table as they are
eliminated on consolidation.
|
|
(3) Other non-cash expense, net, primarily includes non-cash gains
(losses) on disposal of assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted Power and Energy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
|
Year Ended
December 31,
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
29,487
|
|
(29,487)
|
|
(100.0)
|
|
Product revenues
|
|
32,540
|
|
4,441
|
|
28,099
|
|
NM
|
|
|
123,797
|
|
19,779
|
|
104,018
|
|
NM
|
|
Finance lease revenues
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
1,836
|
|
(1,836)
|
|
(100.0)
|
|
Total revenues
|
|
32,540
|
|
4,441
|
|
28,099
|
|
NM
|
|
|
123,797
|
|
51,102
|
|
72,695
|
|
142.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue — service(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
21,311
|
|
21,311
|
|
100.0
|
|
Cost of revenue — product
|
|
4,416
|
|
1,077
|
|
(3,339)
|
|
NM
|
|
|
18,901
|
|
3,869
|
|
(15,032)
|
|
NM
|
|
Cost of revenue — total
|
|
4,416
|
|
1,077
|
|
(3,339)
|
|
NM
|
|
|
18,901
|
|
25,180
|
|
6,279
|
|
24.9
|
|
Gross profit
|
|
28,124
|
|
3,364
|
|
24,760
|
|
NM
|
|
|
104,896
|
|
25,922
|
|
78,974
|
|
NM
|
|
Selling, general and administrative expenses
|
|
7,404
|
|
1,461
|
|
(5,943)
|
|
NM
|
|
|
30,847
|
|
8,319
|
|
(22,528)
|
|
NM
|
|
Depreciation and amortization
|
|
13,831
|
|
3,869
|
|
(9,962)
|
|
NM
|
|
|
48,990
|
|
15,601
|
|
(33,389)
|
|
NM
|
|
Loss from customer contract termination
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
1,269
|
|
1,269
|
|
100.0
|
|
Operating income (loss)
|
|
6,889
|
|
(1,966)
|
|
8,855
|
|
NM
|
|
|
25,059
|
|
733
|
|
24,326
|
|
NM
|
|
Interest expense, net(2)
|
|
(540)
|
|
(849)
|
|
309
|
|
36.4
|
|
|
(28,390)
|
|
(8,606)
|
|
(19,784)
|
|
NM
|
|
Loss on extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(90)
|
|
90
|
|
100.0
|
|
Equity in earnings of investee
|
|
-
|
|
312
|
|
(312)
|
|
(100.0)
|
|
|
-
|
|
244
|
|
(244)
|
|
(100.0)
|
|
Other income (expense)
|
|
1
|
|
(1,489)
|
|
1,490
|
|
100.1
|
|
|
1,066
|
|
2,300
|
|
(1,234)
|
|
(53.7)
|
|
Benefit (provision) for income taxes
|
|
1,244
|
|
591
|
|
653
|
|
110.5
|
|
|
(4,887)
|
|
(823)
|
|
(4,064)
|
|
NM
|
|
Noncontrolling interest
|
|
1,096
|
|
2,463
|
|
(1,367)
|
|
(55.5)
|
|
|
5,856
|
|
4,471
|
|
1,385
|
|
31.0
|
|
Net income (loss)(3)
|
|
8,690
|
|
(938)
|
|
9,628
|
|
NM
|
|
|
(1,296)
|
|
(1,771)
|
|
475
|
|
26.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) to EBITDA excluding non-
cash
items and cash provided by operating activities to Free
Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)(3)
|
|
8,690
|
|
(938)
|
|
|
|
|
|
|
(1,296)
|
|
(1,771)
|
|
|
|
|
|
Interest expense, net(2)
|
|
540
|
|
849
|
|
|
|
|
|
|
28,390
|
|
8,606
|
|
|
|
|
|
(Benefit) provision for income taxes
|
|
(1,244)
|
|
(591)
|
|
|
|
|
|
|
4,887
|
|
823
|
|
|
|
|
|
Depreciation and amortization(1)
|
|
13,831
|
|
3,869
|
|
|
|
|
|
|
48,990
|
|
19,975
|
|
|
|
|
|
Other non-cash income, net(4)
|
|
(3,083)
|
|
(2,532)
|
|
|
|
|
|
|
(12,815)
|
|
(4,910)
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
18,734
|
|
657
|
|
18,077
|
|
NM
|
|
|
68,156
|
|
22,723
|
|
45,433
|
|
199.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
18,734
|
|
657
|
|
|
|
|
|
|
68,156
|
|
22,723
|
|
|
|
|
|
Interest expense, net(2)
|
|
(540)
|
|
(849)
|
|
|
|
|
|
|
(28,390)
|
|
(8,606)
|
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense(2)
|
|
(6,186)
|
|
(812)
|
|
|
|
|
|
|
819
|
|
(5,321)
|
|
|
|
|
|
Amortization of debt financing costs(2)
|
|
376
|
|
16
|
|
|
|
|
|
|
686
|
|
518
|
|
|
|
|
|
Interest rate swap breakage fees
|
|
-
|
|
-
|
|
|
|
|
|
|
(19,171)
|
|
-
|
|
|
|
|
|
Equipment lease receivable, net
|
|
-
|
|
-
|
|
|
|
|
|
|
-
|
|
2,805
|
|
|
|
|
|
Benefit/provision for income taxes, net of changes in deferred taxes
|
|
(2)
|
|
-
|
|
|
|
|
|
|
(4)
|
|
(903)
|
|
|
|
|
|
Changes in working capital
|
|
1,573
|
|
9,454
|
|
|
|
|
|
|
(2,331)
|
|
33,440
|
|
|
|
|
|
Cash provided by operating activities
|
|
13,955
|
|
8,466
|
|
|
|
|
|
|
19,765
|
|
44,656
|
|
|
|
|
|
Changes in working capital
|
|
(1,573)
|
|
(9,454)
|
|
|
|
|
|
|
2,331
|
|
(33,440)
|
|
|
|
|
|
Maintenance capital expenditures
|
|
-
|
|
-
|
|
|
|
|
|
|
(107)
|
|
(736)
|
|
|
|
|
|
Free cash flow
|
|
12,382
|
|
(988)
|
|
13,370
|
|
NM
|
|
|
21,989
|
|
10,480
|
|
11,509
|
|
109.8
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation expense of $4.4 million for the year ended
December 31, 2014, related to the district energy business, which
was sold on August 21, 2014.
|
|
(2) Interest expense, net, includes adjustments to derivative
instruments and non-cash amortization of deferred financing fees.
|
|
(3) Corporate allocation expense, intercompany fees and the tax
effect have been excluded from the above table as they are
eliminated on consolidation.
|
|
|
|
(4) Other non-cash income, net, primarily includes adjustments to
noncontrolling interest and amortization of tolling liabilities.
For the year ended December 31, 2014, other non-cash income, net,
also included non-cash loss from customer contract terminations
related to the district energy business, which was sold on August
21, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
Change
|
Year Ended
December 31,
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
53,951
|
|
61,642
|
|
(7,691)
|
|
(12.5)
|
|
|
226,952
|
|
264,621
|
|
(37,669)
|
|
(14.2)
|
|
Cost of product sales(1)
|
|
39,129
|
|
43,153
|
|
4,024
|
|
9.3
|
|
|
150,053
|
|
189,012
|
|
38,959
|
|
20.6
|
|
Gross profit
|
|
14,822
|
|
18,489
|
|
(3,667)
|
|
(19.8)
|
|
|
76,899
|
|
75,609
|
|
1,290
|
|
1.7
|
|
Selling, general and administrative expenses
|
|
6,095
|
|
7,127
|
|
1,032
|
|
14.5
|
|
|
21,475
|
|
22,491
|
|
1,016
|
|
4.5
|
|
Depreciation and amortization
|
|
2,349
|
|
2,331
|
|
(18)
|
|
(0.8)
|
|
|
9,335
|
|
9,192
|
|
(143)
|
|
(1.6)
|
|
Operating income
|
|
6,378
|
|
9,031
|
|
(2,653)
|
|
(29.4)
|
|
|
46,089
|
|
43,926
|
|
2,163
|
|
4.9
|
|
Interest expense, net(2)
|
|
(1,706)
|
|
(1,824)
|
|
118
|
|
6.5
|
|
|
(7,279)
|
|
(7,091)
|
|
(188)
|
|
(2.7)
|
|
Other expense
|
|
(124)
|
|
(2,690)
|
|
2,566
|
|
95.4
|
|
|
(556)
|
|
(2,871)
|
|
2,315
|
|
80.6
|
|
Provision for income taxes
|
|
(974)
|
|
(926)
|
|
(48)
|
|
(5.2)
|
|
|
(14,261)
|
|
(12,635)
|
|
(1,626)
|
|
(12.9)
|
|
Net income(3)
|
|
3,574
|
|
3,591
|
|
(17)
|
|
(0.5)
|
|
|
23,993
|
|
21,329
|
|
2,664
|
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to EBITDA excluding non-cash
items and cash provided by operating activities to Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income(3)
|
|
3,574
|
|
3,591
|
|
|
|
|
|
|
23,993
|
|
21,329
|
|
|
|
|
|
Interest expense, net(2)
|
|
1,706
|
|
1,824
|
|
|
|
|
|
|
7,279
|
|
7,091
|
|
|
|
|
|
Provision for income taxes
|
|
974
|
|
926
|
|
|
|
|
|
|
14,261
|
|
12,635
|
|
|
|
|
|
Depreciation and amortization
|
|
2,349
|
|
2,331
|
|
|
|
|
|
|
9,335
|
|
9,192
|
|
|
|
|
|
Other non-cash expense, net(4)
|
|
6,038
|
|
5,124
|
|
|
|
|
|
|
5,215
|
|
6,709
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
14,641
|
|
13,796
|
|
845
|
|
6.1
|
|
|
60,083
|
|
56,956
|
|
3,127
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
14,641
|
|
13,796
|
|
|
|
|
|
|
60,083
|
|
56,956
|
|
|
|
|
|
Interest expense, net(2)
|
|
(1,706)
|
|
(1,824)
|
|
|
|
|
|
|
(7,279)
|
|
(7,091)
|
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense(2)
|
|
(152)
|
|
62
|
|
|
|
|
|
|
(15)
|
|
5
|
|
|
|
|
|
Amortization of debt financing costs(2)
|
|
121
|
|
120
|
|
|
|
|
|
|
483
|
|
480
|
|
|
|
|
|
Provision for income taxes, net of changes in deferred taxes
|
|
184
|
|
3
|
|
|
|
|
|
|
184
|
|
(659)
|
|
|
|
|
|
Pension contribution
|
|
-
|
|
-
|
|
|
|
|
|
|
-
|
|
(6,960)
|
|
|
|
|
|
Changes in working capital
|
|
(6,936)
|
|
974
|
|
|
|
|
|
|
(1,570)
|
|
(1,100)
|
|
|
|
|
|
Cash provided by operating activities
|
|
6,152
|
|
13,131
|
|
|
|
|
|
|
51,886
|
|
41,631
|
|
|
|
|
|
Changes in working capital
|
|
6,936
|
|
(974)
|
|
|
|
|
|
|
1,570
|
|
1,100
|
|
|
|
|
|
Maintenance capital expenditures
|
|
(4,698)
|
|
(1,217)
|
|
|
|
|
|
|
(9,338)
|
|
(6,829)
|
|
|
|
|
|
Free cash flow
|
|
8,390
|
|
10,940
|
|
(2,550)
|
|
(23.3)
|
|
|
44,118
|
|
35,902
|
|
8,216
|
|
22.9
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of product sales includes unrealized losses on commodity
hedges for the quarter and year ended December 31, 2015.
|
|
(2) Interest expense, net, includes adjustments to
derivative instruments related to interest rate swaps and non-cash
amortization of deferred financing fees.
|
|
(3) Corporate allocation expense, intercompany fees and the tax
effect have been excluded from the above table as they are
eliminated on consolidation.
|
|
(4) Other non-cash expense, net, primarily includes non-cash
adjustments related to pension expense and unrealized gains (losses)
on commodity hedges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Change
|
|
Year Ended
December 31,
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
2015
|
|
2014
|
|
Favorable/(Unfavorable)
|
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
$
|
|
$
|
|
$
|
|
%
|
|
|
|
($ In Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees to Manager-related party
|
|
17,009
|
|
14,192
|
|
(2,817)
|
|
(19.8)
|
|
|
354,959
|
|
168,182
|
|
(186,777)
|
|
(111.1)
|
|
Selling, general and administrative expenses
|
|
2,915
|
|
3,387
|
|
472
|
|
13.9
|
|
|
11,575
|
|
15,526
|
|
3,951
|
|
25.4
|
|
Operating loss
|
|
(19,924)
|
|
(17,579)
|
|
(2,345)
|
|
(13.3)
|
|
|
(366,534)
|
|
(183,708)
|
|
(182,826)
|
|
(99.5)
|
|
Interest expense, net(1)
|
|
(3,415)
|
|
(3,247)
|
|
(168)
|
|
(5.2)
|
|
|
(14,242)
|
|
(5,905)
|
|
(8,337)
|
|
(141.2)
|
|
Gain from acquisition/divestiture of businesses(2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
1,027,054
|
|
(1,027,054)
|
|
(100.0)
|
|
Other income
|
|
1
|
|
-
|
|
1
|
|
NM
|
|
|
687
|
|
-
|
|
687
|
|
NM
|
|
Benefit for income taxes
|
|
10,526
|
|
11,258
|
|
(732)
|
|
(6.5)
|
|
|
151,910
|
|
88,696
|
|
63,214
|
|
71.3
|
|
Noncontrolling interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(1,428)
|
|
1,428
|
|
100.0
|
|
Net (loss) income(3)
|
|
(12,812)
|
|
(9,568)
|
|
(3,244)
|
|
(33.9)
|
|
|
(228,179)
|
|
924,709
|
|
(1,152,888)
|
|
(124.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net (loss) income to EBITDA excluding non-
cash
items and cash provided by (used in) operating activities
to
Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income(3)
|
|
(12,812)
|
|
(9,568)
|
|
|
|
|
|
|
(228,179)
|
|
924,709
|
|
|
|
|
|
Interest expense, net(1)
|
|
3,415
|
|
3,247
|
|
|
|
|
|
|
14,242
|
|
5,905
|
|
|
|
|
|
Benefit for income taxes
|
|
(10,526)
|
|
(11,258)
|
|
|
|
|
|
|
(151,910)
|
|
(88,696)
|
|
|
|
|
|
Fees to Manager-related party(4)
|
|
17,009
|
|
14,192
|
|
|
|
|
|
|
354,959
|
|
168,182
|
|
|
|
|
|
Gain from acquisition/divestiture of businesses(2)
|
|
-
|
|
-
|
|
|
|
|
|
|
-
|
|
(1,027,181)
|
|
|
|
|
|
Other non-cash expense
|
|
187
|
|
187
|
|
|
|
|
|
|
750
|
|
2,178
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
(2,727)
|
|
(3,200)
|
|
473
|
|
14.8
|
|
|
(10,138)
|
|
(14,903)
|
|
4,765
|
|
32.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
(2,727)
|
|
(3,200)
|
|
|
|
|
|
|
(10,138)
|
|
(14,903)
|
|
|
|
|
|
Interest expense, net (1)
|
|
(3,415)
|
|
(3,247)
|
|
|
|
|
|
|
(14,242)
|
|
(5,905)
|
|
|
|
|
|
Amortization of debt financing costs(1)
|
|
611
|
|
556
|
|
|
|
|
|
|
2,341
|
|
1,013
|
|
|
|
|
|
Benefit for income taxes, net of changes in deferred taxes(5)
|
|
6,505
|
|
159
|
|
|
|
|
|
|
6,959
|
|
760
|
|
|
|
|
|
Changes in working capital(4)
|
|
3,060
|
|
(63,521)
|
|
|
|
|
|
|
(68,264)
|
|
(60,531)
|
|
|
|
|
|
Cash provided by (used in) operating activities
|
|
4,034
|
|
(69,253)
|
|
|
|
|
|
|
(83,344)
|
|
(79,566)
|
|
|
|
|
|
Changes in working capital(4)
|
|
(3,060)
|
|
63,521
|
|
|
|
|
|
|
68,264
|
|
60,531
|
|
|
|
|
|
Free cash flow
|
|
974
|
|
(5,732)
|
|
6,706
|
|
117.0
|
|
|
(15,080)
|
|
(19,035)
|
|
3,955
|
|
20.8
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM- Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest expense, net, includes non-cash amortization of
deferred financing fees.
|
|
(2) Represents the gain from the remeasuring to fair value of our
previous 50% ownership of IMTT and the gain recognized on the sale
of the district energy business.
|
|
|
|
(3) Corporate allocation expense, intercompany fees and the tax
effect have been excluded from the above table as they are
eliminated on consolidation.
|
|
|
|
(4) In July 2015, our Board requested, and our Manager agreed,
that $67.8 million of the performance fee for the quarter ended
June 30, 2015 be settled in cash in July 2015 to minimize
dilution. The remaining $67.8 million obligation was deferred
until July 2016. At July 2016, the MIC Board will consider whether
the remaining obligation may be settled in cash or shares, or a
combination thereof. In October 2014, our Board requested, and our
Manager agreed, that $65.0 million of the performance fee for the
quarter ended September 30, 2014 be settled in cash using the
proceeds from the sale of the district energy business to minimize
dilution. The remainder of the fee of $51.6 million was reinvested
in additional shares of MIC.
|
|
(5) Includes $6.9 million of tax refund received in the fourth
quarter of 2015 relating to the election of bonus depreciation for
2014.
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO
EBITDA
EXCLUDING NON-CASH ITEMS AND CASH FROM
OPERATING ACTIVITIES TO FREE
CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31, 2015
|
|
|
|
($ in Thousands) (Unaudited)
|
|
IMTT
100%(1)
|
|
Atlantic
Aviation
100%
|
|
Contracted
Power and
Energy(2)
|
|
Hawaii Gas
100%
|
|
MIC
Corporate
100%
|
|
Proportionately
Combined(3)
|
|
Contracted
Power and
Energy
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MIC
|
|
21,181
|
|
12,290
|
|
7,967
|
|
3,574
|
|
(12,812)
|
|
32,200
|
|
8,690
|
|
Interest expense, net(4)
|
|
5,164
|
|
3,609
|
|
301
|
|
1,706
|
|
3,415
|
|
14,195
|
|
540
|
|
Provision (benefit) for income taxes
|
|
14,719
|
|
8,641
|
|
(1,244)
|
|
974
|
|
(10,526)
|
|
12,564
|
|
(1,244)
|
|
Depreciation and amortization of intangibles
|
|
32,217
|
|
22,332
|
|
11,958
|
|
2,349
|
|
-
|
|
68,856
|
|
13,831
|
|
Fees to Manager-related party
|
|
-
|
|
-
|
|
-
|
|
-
|
|
17,009
|
|
17,009
|
|
-
|
|
Other non-cash expense (income), net(6)
|
|
1,873
|
|
1,177
|
|
(2,995)
|
|
6,038
|
|
187
|
|
6,280
|
|
(3,083)
|
|
EBITDA excluding non-cash items
|
|
75,154
|
|
48,049
|
|
15,987
|
|
14,641
|
|
(2,727)
|
|
151,104
|
|
18,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
75,154
|
|
48,049
|
|
15,987
|
|
14,641
|
|
(2,727)
|
|
151,104
|
|
18,734
|
|
Interest expense, net(4)
|
|
(5,164)
|
|
(3,609)
|
|
(301)
|
|
(1,706)
|
|
(3,415)
|
|
(14,195)
|
|
(540)
|
|
Adjustments to derivative instruments recorded in interest expense,
net(4)
|
|
(5,052)
|
|
(4,310)
|
|
(5,538)
|
|
(152)
|
|
-
|
|
(15,052)
|
|
(6,186)
|
|
Amortization of deferred finance charges(4)
|
|
407
|
|
803
|
|
363
|
|
121
|
|
611
|
|
2,305
|
|
376
|
|
Provision/benefit for income taxes, net of changes in deferred
taxes(5)
|
|
(314)
|
|
652
|
|
(2)
|
|
184
|
|
6,505
|
|
7,025
|
|
(2)
|
|
Changes in working capital
|
|
(1,593)
|
|
(2,927)
|
|
2,144
|
|
(6,936)
|
|
3,060
|
|
(6,252)
|
|
1,573
|
|
Cash provided by operating activities
|
|
63,438
|
|
38,658
|
|
12,653
|
|
6,152
|
|
4,034
|
|
124,935
|
|
13,955
|
|
Changes in working capital
|
|
1,593
|
|
2,927
|
|
(2,144)
|
|
6,936
|
|
(3,060)
|
|
6,252
|
|
(1,573)
|
|
Maintenance capital expenditures
|
|
(17,146)
|
|
(8,489)
|
|
-
|
|
(4,698)
|
|
-
|
|
(30,333)
|
|
-
|
|
Free cash flow
|
|
47,885
|
|
33,096
|
|
10,509
|
|
8,390
|
|
974
|
|
100,854
|
|
12,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31, 2014
|
|
|
|
($ in Thousands) (Unaudited)
|
|
IMTT
100%(1)
|
|
Atlantic
Aviation
100%
|
|
Contracted
Power and
Energy(2)
|
|
Hawaii Gas
100%
|
|
MIC
Corporate
100%
|
|
Proportionately
Combined(3)
|
|
Contracted
Power and
Energy
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MIC
|
|
20,924
|
|
6,960
|
|
(117)
|
|
3,591
|
|
(9,568)
|
|
21,790
|
|
(938)
|
|
Interest expense, net(4)
|
|
5,735
|
|
13,012
|
|
449
|
|
1,824
|
|
3,247
|
|
24,267
|
|
849
|
|
Provision (benefit) for income taxes
|
|
17,945
|
|
7,095
|
|
(591)
|
|
926
|
|
(11,258)
|
|
14,117
|
|
(591)
|
|
Depreciation and amortization of intangibles
|
|
28,062
|
|
16,745
|
|
2,820
|
|
2,331
|
|
-
|
|
49,958
|
|
3,869
|
|
Fees to Manager-related party
|
|
-
|
|
-
|
|
-
|
|
-
|
|
14,192
|
|
14,192
|
|
-
|
|
Other non-cash expense (income), net(6)
|
|
2,249
|
|
382
|
|
(2,385)
|
|
5,124
|
|
187
|
|
5,557
|
|
(2,532)
|
|
EBITDA excluding non-cash items
|
|
74,915
|
|
44,194
|
|
176
|
|
13,796
|
|
(3,200)
|
|
129,881
|
|
657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
74,915
|
|
44,194
|
|
176
|
|
13,796
|
|
(3,200)
|
|
129,881
|
|
657
|
|
Interest expense, net(4)
|
|
(5,735)
|
|
(13,012)
|
|
(449)
|
|
(1,824)
|
|
(3,247)
|
|
(24,267)
|
|
(849)
|
|
Adjustments to derivative instruments recorded in interest expense,
net(4)
|
|
(3,168)
|
|
4,747
|
|
(812)
|
|
62
|
|
-
|
|
829
|
|
(812)
|
|
Amortization of deferred finance charges(4)
|
|
(593)
|
|
810
|
|
13
|
|
120
|
|
556
|
|
906
|
|
16
|
|
Provision/benefit for income taxes, net of changes in deferred
taxes
|
|
(1,428)
|
|
(1,981)
|
|
-
|
|
3
|
|
159
|
|
(3,247)
|
|
-
|
|
Changes in working capital
|
|
2,309
|
|
3,850
|
|
7,208
|
|
974
|
|
(63,521)
|
|
(49,180)
|
|
9,454
|
|
Cash provided by (used in) operating activities
|
|
66,300
|
|
38,608
|
|
6,136
|
|
13,131
|
|
(69,253)
|
|
54,922
|
|
8,466
|
|
Changes in working capital
|
|
(2,309)
|
|
(3,850)
|
|
(7,208)
|
|
(974)
|
|
63,521
|
|
49,180
|
|
(9,454)
|
|
Maintenance capital expenditures
|
|
(6,781)
|
|
(5,276)
|
|
-
|
|
(1,217)
|
|
-
|
|
(13,274)
|
|
-
|
|
Free cash flow
|
|
57,210
|
|
29,482
|
|
(1,072)
|
|
10,940
|
|
(5,732)
|
|
90,828
|
|
(988)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO
EBITDA
EXCLUDING NON-CASH ITEMS AND CASH FROM
OPERATING ACTIVITIES TO FREE
CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2015
|
|
|
|
|
|
|
($ in Thousands) (Unaudited)
|
|
IMTT
100%(1)
|
|
Atlantic
Aviation
100%
|
|
Contracted
Power and
Energy(2)
|
|
Hawaii Gas
100%
|
|
MIC
Corporate
100%
|
|
Proportionately
Combined(3)
|
|
Contracted
Power and
Energy
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MIC
|
|
74,140
|
|
22,805
|
|
(303)
|
|
23,993
|
|
(228,179)
|
|
(107,544)
|
|
(1,296)
|
|
|
|
|
Interest expense, net(4)
|
|
37,378
|
|
35,735
|
|
24,562
|
|
7,279
|
|
14,242
|
|
119,196
|
|
28,390
|
|
|
|
|
Provision (benefit) for income taxes
|
|
51,520
|
|
16,081
|
|
4,887
|
|
14,261
|
|
(151,910)
|
|
(65,161)
|
|
4,887
|
|
|
|
|
Depreciation and amortization of intangibles
|
|
132,002
|
|
126,351
|
|
41,503
|
|
9,335
|
|
-
|
|
309,191
|
|
48,990
|
|
|
|
|
Fees to Manager-related party(7)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
354,959
|
|
354,959
|
|
-
|
|
|
|
|
Other non-cash expense (income), net(6)
|
|
7,027
|
|
2,645
|
|
(12,142)
|
|
5,215
|
|
750
|
|
3,495
|
|
(12,815)
|
|
|
|
|
EBITDA excluding non-cash items
|
|
302,067
|
|
203,617
|
|
58,507
|
|
60,083
|
|
(10,138)
|
|
614,136
|
|
68,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
302,067
|
|
203,617
|
|
58,507
|
|
60,083
|
|
(10,138)
|
|
614,136
|
|
68,156
|
|
|
|
|
Interest expense, net(4)
|
|
(37,378)
|
|
(35,735)
|
|
(24,562)
|
|
(7,279)
|
|
(14,242)
|
|
(119,196)
|
|
(28,390)
|
|
|
|
|
Adjustments to derivative instruments recorded in interest expense,
net(4)
|
|
(2,912)
|
|
3,617
|
|
693
|
|
(15)
|
|
-
|
|
1,383
|
|
819
|
|
|
|
|
Amortization of deferred finance charges(4)
|
|
2,344
|
|
3,221
|
|
649
|
|
483
|
|
2,341
|
|
9,038
|
|
686
|
|
|
|
|
Interest rate swap breakage fees
|
|
(31,385)
|
|
-
|
|
(19,171)
|
|
-
|
|
-
|
|
(50,556)
|
|
(19,171)
|
|
|
|
|
Provision/benefit for income taxes, net of changes in deferred
taxes(5)
|
|
(470)
|
|
(242)
|
|
(4)
|
|
184
|
|
6,959
|
|
6,427
|
|
(4)
|
|
|
|
|
Changes in working capital(7)
|
|
(11,260)
|
|
(2,635)
|
|
(2,286)
|
|
(1,570)
|
|
(68,264)
|
|
(86,015)
|
|
(2,331)
|
|
|
|
|
Cash provided by (used in) operating activities
|
|
221,006
|
|
171,843
|
|
13,826
|
|
51,886
|
|
(83,344)
|
|
375,217
|
|
19,765
|
|
|
|
|
Changes in working capital(7)
|
|
11,260
|
|
2,635
|
|
2,286
|
|
1,570
|
|
68,264
|
|
86,015
|
|
2,331
|
|
|
|
|
Maintenance capital expenditures
|
|
(37,696)
|
|
(21,455)
|
|
(107)
|
|
(9,338)
|
|
-
|
|
(68,596)
|
|
(107)
|
|
|
|
|
Free cash flow
|
|
194,570
|
|
153,023
|
|
16,005
|
|
44,118
|
|
(15,080)
|
|
392,636
|
|
21,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014
|
|
|
|
|
($ in Thousands) (Unaudited)
|
|
IMTT
50%(8)
|
|
IMTT
100%(1)
|
|
Atlantic
Aviation
100%
|
|
Contracted
Power and
Energy(2)
|
|
Hawaii Gas
100%
|
|
MIC Corporate
100%
|
|
Proportionately
Combined(3)
|
|
IMTT 100%(9)
|
Contracted
Power and
Energy
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MIC
|
|
28,748
|
|
34,650
|
|
36,964
|
|
645
|
|
21,329
|
|
924,709
|
|
1,047,045
|
|
92,146
|
(1,771)
|
|
Interest expense, net(4)
|
|
8,188
|
|
10,864
|
|
40,618
|
|
5,606
|
|
7,091
|
|
5,905
|
|
78,272
|
|
27,239
|
8,606
|
|
Provision (benefit) for income taxes
|
|
19,133
|
|
25,768
|
|
25,096
|
|
143
|
|
12,635
|
|
(88,696)
|
|
(5,922)
|
|
64,033
|
823
|
|
Depreciation and amortization of intangibles
|
|
20,461
|
|
52,566
|
|
63,778
|
|
13,427
|
|
9,192
|
|
-
|
|
159,424
|
|
93,488
|
19,975
|
|
Fees to Manager-related party(7)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
168,182
|
|
168,182
|
|
-
|
-
|
|
Gain from acquisition/divestiture of businesses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,027,181)
|
|
(1,027,181)
|
|
-
|
-
|
|
Other non-cash expense (income), net(6)
|
|
2,183
|
|
3,903
|
|
1,475
|
|
(6,906)
|
|
6,709
|
|
2,178
|
|
9,542
|
|
8,269
|
(4,910)
|
|
EBITDA excluding non-cash items
|
|
78,712
|
|
127,751
|
|
167,931
|
|
12,914
|
|
56,956
|
|
(14,903)
|
|
429,361
|
|
285,175
|
22,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA excluding non-cash items
|
|
78,712
|
|
127,751
|
|
167,931
|
|
12,914
|
|
56,956
|
|
(14,903)
|
|
429,361
|
|
285,175
|
22,723
|
|
Interest expense, net(4)
|
|
(8,188)
|
|
(10,864)
|
|
(40,618)
|
|
(5,606)
|
|
(7,091)
|
|
(5,905)
|
|
(78,272)
|
|
(27,239)
|
(8,606)
|
|
Adjustments to derivative instruments recorded in interest expense,
net(4)
|
|
(4,042)
|
|
(7,251)
|
|
9,459
|
|
(3,067)
|
|
5
|
|
-
|
|
(4,896)
|
|
(15,335)
|
(5,321)
|
|
Amortization of deferred finance charges(4)
|
|
912
|
|
227
|
|
3,138
|
|
280
|
|
480
|
|
1,013
|
|
6,049
|
|
2,050
|
518
|
|
Equipment lease receivables, net
|
|
-
|
|
-
|
|
-
|
|
1,403
|
|
-
|
|
-
|
|
1,403
|
|
-
|
2,805
|
|
Provision/benefit for income taxes, net of changes in deferred taxes
|
|
(18,017)
|
|
1,783
|
|
(4,549)
|
|
(453)
|
|
(659)
|
|
760
|
|
(21,134)
|
|
(34,250)
|
(903)
|
|
Pension contribution
|
|
-
|
|
(20,000)
|
|
-
|
|
-
|
|
(6,960)
|
|
-
|
|
(26,960)
|
|
(20,000)
|
-
|
|
Changes in working capital(7)
|
|
6,781
|
|
(13,974)
|
|
6,775
|
|
28,875
|
|
(1,100)
|
|
(60,531)
|
|
(33,174)
|
|
(413)
|
33,440
|
|
Cash provided by (used in) operating activities
|
|
56,158
|
|
77,672
|
|
142,136
|
|
34,346
|
|
41,631
|
|
(79,566)
|
|
272,377
|
|
189,988
|
44,656
|
|
Changes in working capital(7)
|
|
(6,781)
|
|
13,974
|
|
(6,775)
|
|
(28,875)
|
|
1,100
|
|
60,531
|
|
33,174
|
|
413
|
(33,440)
|
|
Maintenance capital expenditures
|
|
(18,054)
|
|
(8,069)
|
|
(9,886)
|
|
(368)
|
|
(6,829)
|
|
-
|
|
(43,206)
|
|
(44,176)
|
(736)
|
|
Free cash flow
|
|
31,324
|
|
83,577
|
|
125,475
|
|
5,103
|
|
35,902
|
|
(19,035)
|
|
262,346
|
|
146,225
|
10,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents our 100% ownership interest in IMTT subsequent to
July 16, 2014. IMTT owns 66.7% of its Quebec marine terminal in
Canada. The remainder is owned by one other party. IMTT
consolidates the results of the Quebec terminal in its financial
statements and adjusts the portion that it does not own through
noncontrolling interest. The above table shows 100% of IMTT,
including the 33.3% portion of the Quebec terminal that it does
not own, which is not significant. Both MIC’s and IMTT’s EBITDA
excluding non-cash items and Free Cash Flow reflects 100% of the
results of the Quebec terminal.
|
|
(2) Proportionately combined Free Cash Flow for Contracted Power
and Energy is equal to MIC's controlling ownership interest in its
solar and wind power facilities and the district energy business,
up to August 21, 2014, date of sale. As of April 1, 2015,
Contracted Power and Energy also includes 100% of BEC, a gas-fired
power facility.
|
|
(3) Proportionately combined Free Cash Flow is equal to the sum of
Free Cash Flow attributable to MIC's ownership interest in each of
its operating businesses and MIC Corporate.
|
|
(4) Interest expense, net, includes adjustment to derivative
instruments and non-cash amortization of deferred financing fees.
For the year ended December 31, 2015, interest expense also
includes non-cash write-off of deferred financing costs related to
the May 2015 refinancing at IMTT.
|
|
(5) Includes $6.9 million of tax refund received in the fourth
quarter of 2015 relating to the election of bonus depreciation for
2014.
|
|
(6) Other non-cash expense (income), net, primarily includes
non-cash adjustments related to pension expense, adjustments to
noncontrolling interest, amortization of tolling liabilities,
unrealized gains (losses) on commodity hedges and any non-cash
gains (losses) on disposal of assets. For the year ended December
31, 2014, other non-cash expense (income), net, also included
non-cash loss from customer contract terminations related to the
district energy business, which was sold on August 21, 2014.
|
|
(7) In July 2015, our Board requested, and our Manager agreed,
that $67.8 million of the performance fee for the quarter ended
June 30, 2015 be settled in cash in July 2015 to minimize
dilution. The remaining $67.8 million obligation was deferred
until July 2016. At July 2016, the MIC Board will consider whether
the remaining obligation may be settled in cash or shares, or a
combination thereof. In October 2014, our Board requested, and our
Manager agreed, that $65.0 million of the performance fee for the
quarter ended September 30, 2014 be settled in cash using the
proceeds from the sale of the district energy business to minimize
dilution. The remainder of the fee of $51.6 million was reinvested
in additional shares of MIC.
|
|
(8) Our proportionate interest in IMTT prior to the acquisition of
the remaining 50% interest on July 16, 2014.
|
|
(9) Represents 100% of IMTT as a stand-alone business.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160222006636/en/ Copyright Business Wire 2016
Source: Business Wire
(February 22, 2016 - 5:15 PM EST)
News by QuoteMedia
www.quotemedia.com
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