EX-99.2 15 v091739_ex99-2.htm
Exhibit 99.2

UNAUDITED PROFORMA CONDENSED COMBINED FINANCIAL STATEMENTS
 
Macquarie Infrastructure Company LLC
Condensed Combined Pro Forma Balance Sheet
As of June 30, 2007
($ in thousands, except share amounts)
 
           
Acquisitions
          
   
MIC
  
Option
  
SJJC
  
Pro forma Adjustments
  
Pro forma Combined
  
   
$
  
$
  
$ 
  
$
  
$
  
ASSETS
                      
Current assets:
                      
Cash and cash equivalents
    
73,000
    
(25,500
)
  
1,508
    
(19,925
)  A 
 
29,083
  
Restricted cash
    
1,290
          
—
    
—
    
1,290
  
Accounts receivable, less allowance for doubtful debts
    
66,291
          
11,853
    
—
    
78,144
  
Dividends receivable
    
7,000
          
—
    
—
    
7,000
  
Other receivables
    
126
          
—
    
—
    
126
  
Inventories
    
12,539
          
446
    
—
    
12,985
  
Prepaid expenses
    
4,564
          
908
    
50
    B   
5,522
  
Deferred income taxes
    
2,411
          
—
    
—
    
2,411
  
Other
    
12,747
    
25,500
    
—
    
(25,500
)  A
  
12,747
  
Total current assets
    
179,968
    
—
    
14,715
    
(45,375
)
  
149,308
  
                                 
Property, equipment, land and leasehold improvements, net
    
550,165
          
18,162
    
14,094
   C  
582,421
  
                                 
Restricted cash
    
25,551
          
—
    
1,509
   D  
27,060
  
Equipment lease receivables
    
40,101
          
—
    
—
    
40,101
  
Investment in unconsolidated business
    
227,958
          
—
    
—
    
227,958
  
Goodwill
    
513,867
          
5,931
    
38,239
   E   
558,037
  
Intangible assets, net
    
553,441
          
5,207
    
99,593
   F  
658,241
  
Deposits and deferred costs on acquisitions
    
2,717
          
—
    
—
    
2,717
  
Deferred financing costs, net of accumulated amortization
    
18,908
          
—
    
723
   G  
19,631
  
Fair value of derivative instruments
    
11,681
          
24
    
—
    
11,705
  
Other
    
2,933
    
                     
    
631
    
—
    
3,564
  
Total assets
    
2,127,290
    
—
    
44,670
    
108,783
    
2,280,743
  
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                
Current liabilities:
                                
Due to manager
    
49,871
          
—
    
—
    
49,871
  
Accounts payable
    
34,235
          
3,326
    
—
    
37,561
  
Accrued expenses
    
27,030
          
2,235
    
—
    
29,265
  
Current portion of notes payable and capital leases
    
11,954
          
—
    
—
    
11,954
  
Current portion of long-term debt
    
6,757
          
599
    
59,401
    H  
66,757
  
Distributions payable
    
-
          
—
    
—
    
—
  
Fair value of derivative instruments
    
1,278
          
—
    
—
    
1,278
  
Other
    
8,484
            
5,706
    
—
    
14,190
  
Total current liabilities
    
139,609
    
—
    
11,866
    
59,401
    
210,876
  
                                 
Capital leases and notes payable, net of current portion
    
2,320
          
—
    
—
    
2,320
  
Long-term debt, net of current portion
    
991,326
          
7,613
    
74,573
    H  
1,073,512
  
Deferred income taxes
    
149,226
          
—
    
—
    
149,226
  
Fair value of derivative instruments
    
—
          
—
    
—
    
—
  
Other
    
27,959
    
     
   
—
    
—
    
27,959
  
Total liabilities
    
1,310,440
    
—
    
19,479
    
133,974
    
1,463,893
  
                                 
Minority interests
    
7677
    
—
    
—
    
—
    
7,677
  
                                 
Stockholders' equity:
                                
LLC Interests, no par value; 500,000,000 authorized; 37,562,165 shares issued and outstanding at June 30, 2007
    
820,700
          
—
    
—
    
820,700
  
Accumulated other comprehensive (loss) income
    
6,044
          
24
    
(24
)  I
  
6,044
  
Accumulated loss
    
(17,571
)
                    
(17,571
)
Members' equity
    
—
    
  
   
25,167
    
(25,167
)  J
  
    
 
Total stockholders' equity
    
809,173
    
—
    
25,191
    
(25,191
)
  
809,173
  
                                           
Total liabilities and stockholders' equity
    
2,127,290
    
—
    
44,670
    
108,783
    
2,280,743
  
 
1
 
     
  As at
June 30,
  
     
2007
  
     
($ in thousands)
  
           
A
Cash
        
 
Subsequent to June 30, 2007, MIC purchased an option to acquire SJJC at a price $25.5 million less than the estimated fair value of SJJC. This transaction is shown to reflect the total estimated fair value of SJJC at the acquisition date.
  
$
(25,500
 
) 
 
Cash used to fund purchase price
    
(19,925
 ) 
           
           
B
Prepaid expenses
        
 
Reflects annual agency fees for SJJC long-term debt funded at closing
  
$
50
 
           
           
C
Property, equipment, land and leasehold improvements, net
        
 
Reflects excess of fair value over net book value
  
$
14,094
 
           
           
D
Restricted cash
        
 
Reflects restricted cash balance established for SJJC long-term debt
  
$
1,509
 
           
           
E
Goodwill
        
 
Reflects the purchase price paid for SJJC in excess of the fair value of net assets acquired
  
$
38,239
 
           
           
F
Intangible assets, net
        
 
Reflects the fair value of SJJC's airport operating rights, customer contracts and non-compete agreements
  
$
99,593
 
           
           
G
Deferred financing costs, net of accumulated amortization
        
 
Reflects deferred financing charges incurred as part of the SJJC long-term debt
  
$
723
 
           
           
H
Long term debt
        
 
Reflects the net increase in the Company’s short-term revolving credit facility as a result of the SJJC purchase
  
$
(59,401
 ) 
 
Reflects the net increase in SJJC's borrowings as a result of the SJJC purchase
  
$
(74,573
 ) 
           
           
F
Accumulated other comprehensive (loss) income
        
 
Reflects the elimination of SJJC’s historical other comprehensive income
  
$
24
 
           
           
G
Accumulated earnings
        
 
Reflects the elimination of SJJC’s historical accumulated earnings
  
$
25,167
 
 
2
 
Macquarie Infrastructure Company LLC
Condensed Combined Pro Forma Statement of Operations
For the six months ended June 30, 2007
($ in thousands, except number of shares and per share data)
 
       
Acquisitions
            
   
MIC
  
SJJC
  
Pro forma Adjustments
      
Pro forma Combined
   
$
  
$
  
$
      
$
Revenue
                    
Revenue from product sales
    
110,648
    
8,081
    
—
        
118,729
  
Service revenue
    
57,086
    
11,638
    
—
        
68,724
  
Financing and equipment lease income
    
1,248
    
—
    
—
        
1,248
  
Total revenue
    
168,982
    
19,719
    
—
        
188,701
  
                               
Costs and expenses
                          
—
  
Cost of product sales
    
70,484
    
4,585
    
—
        
75,069
  
Cost of services
    
23,342
    
7,775
    
—
        
31,117
  
Selling, general and administrative
    
38,978
    
4,551
    
—
        
43,529
  
Fees to manager
    
5,561
    
—
    
—
        
5,561
  
Depreciation
    
3,891
    
445
    
—
        
4,336
  
Amortization of intangibles
    
6,928
    
45
    
1,895
  
(1
)
  
8,868
  
Total operating expenses
    
149,184
    
17,401
    
1,895
        
168,480
  
                               
Operating income
    
19,798
    
2,318
    
(1,895
)
      
20,221
  
                               
Other income (expense)
                              
Dividend income
    
—
    
—
    
—
        
—
  
Interest income
    
1,459
    
23
    
—
        
1,482
  
Interest expense
    
(17,566
)
  
(115
)
  
(4,939
)
(2
)
  
(22,620
)
Equity in earnings and amortization
                              
charges of investees
    
3,465
    
—
    
—
        
3,465
  
Losses on derivative instruments
    
(477
)
  
—
    
—
        
(477
)
Other income (expense), net
    
(916
)
  
—
    
—
        
(916
)
Income (loss) before income taxes
                              
and minority interests
    
5,763
    
2,226
    
(6,834
)
      
1,155
  
Income tax benefit (expense)
    
2,045
    
(3
)
  
1,696
  
(3
)
  
3,738
  
Minority interests
    
69
    
—
    
—
        
69
  
Net income (loss)
    
7,877
    
2,223
    
(5,138
)
      
4,962
  
                               
Basic and diluted income per share
  
$
0.21
                  
$
0.13
  
                               
Weighted average number of shares outstanding:
                      
Basic
    
37,562,165
                    
37,562,165
  
Diluted
    
37,579,034
                    
37,579,034
  
                               
                               
Reconciliation of net income (loss) to EBITDA
                              
Net income (loss)
    
7,877
    
2,223
    
(5,138
)
      
4,962
  
Interest expense, net
    
16,107
    
92
    
4,939
  
(2
)
  
21,138
  
Income tax (benefit) expense
    
(2,045
)
  
3
    
(1,696
)
(3
)
  
(3,738
)
Depreciation expense (4)
    
6,357
    
445
    
—
  
—
    
6,802
  
Amortization of intangibles (4)
    
6,928
    
45
    
1,895
  
(1
)
  
8,868
  
EBITDA
    
35,224
    
2,808
    
—
        
38,032
  
 
3
 
     
Six Months
Ended
June 30,
  
     
2007
  
     
($ in thousands)
  
           
(1)
Amortization
        
 
Additional amortization expense reflecting the Company’s share in the increase in value of certain SJJC intangible assets, depreciated over a period of 2 to 40 years.
  
$
(1,895
 ) 
           
(2)
Interest expense
        
 
Increase in interest expense assuming the amount drawn under MIC's revolving credit facility relating to the SJJC purchase was outstanding for the six months ended June 30, 2007.
  
$
(1,943
 
) 
 
Adjustment to interest expense assuming the amount drawn under SJJC's term loan was outstanding for the six months ended June 30, 2007
  
$
(2,911
 ) 
 
Amortization of deferred financing costs of $723,000 relating to SJJC's term loan.
  
$
(85
 ) 
     
$
(4,939
 ) 
(3)
Income tax benefit
        
 
Adjustment to record estimated tax benefit relating to the pro forma adjustments.
  
$
1,696
 
           
           
(4)
Depreciation includes $2.9 million and $2.1 million for our district energy and airport parking businesses, respectively, which are included in cost of services. Depreciation and amortization of intangibles does not include our share of IMTT depreciation
       
           
 
GRAND TOTAL OF ALL ADJUSTMENTS
  
$
(5,138
 ) 
 
4