Delaware
|
001-32384
|
43-2052503
|
||
(State or other jurisdiction
of incorporation)
|
Commission File Number
|
(IRS Employer Identification No.)
|
125 West 55th Street,
New York, New York
|
10019
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
3.1
|
Amended and Restated Bylaws of the Company, effective February 18, 2016
|
|
3.2
|
Amended and Restated Bylaws of the Company, effective February 18, 2016 (marked)
|
|
99.1
|
Press release
|
MACQUARIE INFRASTRUCTURE CORPORATION | |||
Date: February 22, 2016
|
By:
|
/s/ James Hooke | |
Name: James Hooke | |||
Title: Chief Executive Officer | |||
3.1
|
Amended and Restated Bylaws of the Company, effective February 18, 2016
|
3.2
|
Amended and Restated Bylaws of the Company, effective February 18, 2016 (marked)
|
99.1
|
Press release
|
Page |
ARTICLE I
|
||
THE CORPORATION
|
||
1.1
|
Name.
|
1
|
1.2
|
Registered Office.
|
1
|
1.3
|
Other Offices.
|
2
|
1.4
|
Principal Place of Business.
|
2
|
ARTICLE II
|
||
STOCKHOLDERS
|
||
2.1
|
Annual Meetings of Stockholders.
|
2
|
2.2
|
Special Meetings of Stockholders.
|
2
|
2.3
|
Place of Meeting.
|
2
|
2.4
|
Notice of Meeting.
|
3
|
2.5
|
Record Date.
|
3
|
2.6
|
Quorum and Adjournment.
|
4
|
2.7
|
Proxies.
|
5
|
2.8
|
Nominations and Notice of Stockholder Business.
|
5
|
2.9
|
Procedure for Election of Directors; Voting.
|
10
|
2.10
|
Inspectors of Elections; Opening and Closing the Polls.
|
11
|
2.11
|
Conduct of Business.
|
11
|
2.12
|
Waiver of Notice.
|
12
|
2.13
|
Remote Communication.
|
12
|
2.14
|
No Stockholder Action Without a Meeting.
|
12
|
2.15
|
List of Stockholders.
|
13
|
ARTICLE III
|
||
DIRECTORS
|
||
3.1
|
General Powers.
|
13
|
3.2
|
Number, Tenure and Qualifications.
|
13
|
3.3
|
Election of Directors.
|
14
|
3.4
|
Removal.
|
14
|
3.5
|
Resignations.
|
14
|
3.6
|
Vacancies and Newly Created Directorships.
|
14
|
3.7
|
Appointment of Chairman of the Board.
|
15
|
3.8
|
Chairman of the Board.
|
15
|
3.9
|
Regular Meetings.
|
15
|
3.10
|
Special Meetings.
|
15
|
3.11
|
Notice for Special Meetings.
|
15
|
3.12
|
Waiver of Notice.
|
16
|
3.13
|
Board Action Without Meeting.
|
16
|
3.14
|
Conference Telephone Meetings.
|
16
|
3.15
|
Quorum.
|
16
|
3.16
|
Compensation.
|
17
|
ARTICLE IV
|
||
COMMITTEES
|
||
4.1
|
Committees.
|
17
|
4.2
|
Committee Members.
|
18
|
4.3
|
Committee Secretary.
|
18
|
ARTICLE V
|
||
OFFICERS
|
||
5.1
|
General.
|
18
|
5.2
|
Election and Term of Office.
|
19
|
5.3
|
Chief Executive Officer.
|
19
|
5.4
|
Chief Financial Officer.
|
19
|
5.5
|
General Counsel.
|
19
|
5.6
|
Secretary.
|
19
|
5.7
|
Resignations and Removals.
|
20
|
5.8
|
Vacancies.
|
20
|
5.9
|
Representation of Shares of Other Corporations.
|
20
|
ARTICLE VI
|
||
MANAGEMENT
|
||
6.1
|
Duties of the Manager.
|
20
|
6.2
|
Secondment of the Chief Executive Officer and Chief Financial Officer.
|
20
|
6.3
|
Secondment of Additional Officers.
|
20
|
6.4
|
Election of the Secondees as Officers of the Corporation.
|
21
|
6.5
|
Removal of Seconded Officers.
|
21
|
6.6
|
Replacement Manager.
|
21
|
ARTICLE VII
|
||
STOCK
|
||
7.1
|
Stock Certificates.
|
21
|
7.2
|
Special Designation on Certificates.
|
21
|
7.3
|
Lost Certificates.
|
22
|
7.4
|
Dividends.
|
22
|
7.5
|
Transfer of Stock.
|
22
|
7.6
|
Stock Transfer Agreements.
|
23
|
7.7
|
Registered Stockholders.
|
23
|
ARTICLE VIII
|
||
INDEMNIFICATION
|
||
8.1
|
Indemnification of Directors and Officers in Third Party Proceedings.
|
23
|
8.2
|
Indemnification of Directors and Officers in Actions by or in the Right of the Corporation.
|
24
|
8.3
|
Successful Defense.
|
24
|
8.4
|
Indemnification of Others.
|
24
|
8.5
|
Advance Payment of Expenses.
|
24
|
8.6
|
Limitation on Indemnification.
|
25
|
8.7
|
Determination; Claim.
|
25
|
8.8
|
Non-Exclusivity of Rights.
|
26
|
8.9
|
Insurance.
|
26
|
8.10
|
Survival.
|
26
|
8.11
|
Effect of Repeal or Modification.
|
26
|
8.12
|
Certain Definitions.
|
27
|
8.13
|
Notices.
|
27
|
8.14
|
Reliance.
|
27
|
ARTICLE IX
|
||
BOOKS AND RECORDS
|
||
9.1
|
Books and Records.
|
27
|
ARTICLE X
|
||
MISCELLANEOUS
|
||
10.1
|
Forum Selection Clause.
|
28
|
10.2
|
Time.
|
28
|
10.3
|
Severability.
|
29
|
10.4
|
Variation of Terms.
|
29
|
10.5
|
Fiscal Year.
|
29
|
10.6
|
Seal.
|
29
|
ARTICLE XI
|
||
AMENDMENTS
|
||
11.1
|
Amendments.
|
29
|
11.2
|
Execution of Amendments by Officers.
|
29
|
|
3.7
|
Appointment of Chairman of the Board.
|
|
6.2
|
Secondment of the Chief Executive Officer and Chief Financial Officer.
|
1.1
|
Name.
|
1
|
1.2
|
Registered Office.
|
1
|
1.3
|
Other Offices.
|
2
|
1.4
|
Principal Place of Business.
|
2
|
ARTICLE II
|
||
STOCKHOLDERS
|
||
2.1
|
Annual Meetings of Stockholders.
|
2
|
2.2
|
Special Meetings of Stockholders.
|
2
|
2.3
|
Place of Meeting.
|
2
|
2.4
|
Notice of Meeting.
|
3
|
2.5
|
Record Date.
|
3
|
2.6
|
Quorum and Adjournment.
|
4
|
2.7
|
Proxies.
|
5
|
2.8
|
Nominations and Notice of Stockholder Business.
|
5
|
2.9
|
Procedure for Election of Directors; Voting.
|
10
|
2.10
|
Inspectors of Elections; Opening and Closing the Polls.
|
1011
|
2.11
|
Conduct of Business.
|
11
|
2.12
|
Waiver of Notice.
|
1112
|
2.13
|
Remote Communication.
|
1112
|
2.14
|
No Stockholder Action Without a Meeting.
|
12
|
2.15
|
List of Stockholders.
|
1213
|
ARTICLE III
|
||
DIRECTORS
|
||
3.1
|
General Powers.
|
1213
|
3.2
|
Number, Tenure and Qualifications.
|
13
|
3.3
|
Election of Directors.
|
1314
|
3.4
|
Removal.
|
1314
|
3.5
|
Resignations.
|
1314
|
3.6
|
Vacancies and Newly Created Directorships.
|
14
|
3.7
|
Appointment of Chairman of the Board.
|
1415
|
3.8
|
Chairman of the Board.
|
1415
|
3.9
|
Regular Meetings.
|
1415
|
3.10
|
Special Meetings.
|
15
|
3.11
|
Notice for Special Meetings.
|
15
|
3.12
|
Waiver of Notice.
|
1516
|
3.13
|
Board Action Without Meeting.
|
1516
|
3.14
|
Conference Telephone Meetings.
|
16
|
3.15
|
Quorum.
|
16
|
3.16
|
Compensation.
|
1617
|
ARTICLE IV
|
||
COMMITTEES
|
||
4.1
|
Committees.
|
1617
|
4.2
|
Committee Members.
|
1718
|
4.3
|
Committee Secretary.
|
1718
|
ARTICLE V
|
||
OFFICERS
|
||
5.1
|
General.
|
1718
|
5.2
|
Election and Term of Office.
|
1819
|
5.3
|
Chief Executive Officer.
|
1819
|
5.4
|
Chief Financial Officer.
|
1819
|
5.5
|
General Counsel.
|
19
|
5.6
|
Secretary.
|
19
|
5.7
|
Resignations and Removals.
|
1920
|
5.8
|
Vacancies.
|
1920
|
5.9
|
Representation of Shares of Other Corporations.
|
1920
|
ARTICLE VI
|
||
MANAGEMENT
|
||
6.1
|
Duties of the Manager.
|
20
|
6.2
|
Secondment of the Chief Executive Officer and Chief Financial Officer.
|
20
|
6.3
|
Secondment of Additional Officers.
|
20
|
6.4
|
Election of the Secondees as Officers of the Corporation.
|
2021
|
6.5
|
Removal of Seconded Officers.
|
2021
|
6.6
|
Replacement Manager.
|
2021
|
ARTICLE VII
|
||
STOCK
|
||
7.1
|
Stock Certificates.
|
21
|
7.2
|
Special Designation on Certificates.
|
21
|
7.3
|
Lost Certificates.
|
2122
|
7.4
|
Dividends.
|
22
|
7.5
|
Transfer of Stock.
|
22
|
7.6
|
Stock Transfer Agreements.
|
2223
|
7.7
|
Registered Stockholders.
|
2223
|
ARTICLE VIII
|
||
INDEMNIFICATION
|
||
8.1
|
Indemnification of Directors and Officers in Third Party Proceedings.
|
23
|
8.2
|
Indemnification of Directors and Officers in Actions by or in the Right of the Corporation.
|
2324
|
8.3
|
Successful Defense.
|
2324
|
8.4
|
Indemnification of Others.
|
24
|
8.5
|
Advance Payment of Expenses.
|
24
|
8.6
|
Limitation on Indemnification.
|
2425
|
8.7
|
Determination; Claim.
|
25
|
8.8
|
Non-Exclusivity of Rights.
|
2526
|
8.9
|
Insurance.
|
26
|
8.10
|
Survival.
|
26
|
8.11
|
Effect of Repeal or Modification.
|
26
|
8.12
|
Certain Definitions.
|
2627
|
8.13
|
Notices.
|
27
|
8.14
|
Reliance.
|
27
|
ARTICLE IX
|
||
BOOKS AND RECORDS
|
||
9.1
|
Books and Records.
|
27
|
ARTICLE X
|
||
MISCELLANEOUS
|
||
10.1
|
Forum Selection Clause.
|
28
|
10.2
|
Time
|
28
|
10.3
|
Severability.
|
2829
|
10.4
|
Variation of Terms.
|
2829
|
10.5
|
Fiscal Year.
|
2829
|
10.6
|
Seal.
|
2829
|
ARTICLE XI
|
||
AMENDMENTS
|
||
11.1
|
Amendments.
|
29
|
11.2
|
Execution of Amendments by Officers.
|
|
3.7
|
Appointment of Chairman of the Board.
|
|
6.2
|
Secondment of the Chief Executive Officer and Chief Financial Officer.
|
●
|
Fourth quarter cash dividend of $1.15 per share declared
|
● | 2015 dividend growth of 14.7% exceeds guidance |
●
|
Expected 2016 dividend growth reaffirmed
|
●
|
2015 Adjusted Free Cash Flow increases 17.7% to $5.71 per share
|
●
|
Contributions from the IMTT acquisition in July 2014;
|
●
|
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;
|
●
|
Increases in GA flight activity for the quarter and full year and contributions from sites acquired by Atlantic Aviation during 2014 and 2015;
|
●
|
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,
|
●
|
An increase in the volume of gas sold by Hawaii Gas.
|
●
|
Consolidation of the expenses of IMTT for the full year;
|
●
|
Incremental costs associated with acquired power facilities; and,
|
●
|
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,
|
●
|
Improvements in cost control at IMTT and the absence of corporate costs incurred in 2014 related to the IMTT acquisition; and,
|
●
|
Reductions in promotional and legal costs at Hawaii Gas.
|
●
|
$50.6 million of swap breakage costs;
|
●
|
The consolidation of IMTT; and,
|
●
|
Incremental debt associated with acquisitions of a wind power facility and BEC; and,
|
●
|
Interest on holding company convertible notes and on a revolving credit facility issued in mid-2014.
|
●
|
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;
|
●
|
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
|
●
|
Planned increases in capital spending at Hawaii Gas, primarily in the fourth quarter of 2015.
|
●
|
$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);
|
●
|
$9.3 million of transaction expenses related to BEC primarily in the first half of 2015;
|
●
|
A tax refund of $6.9 million received in the fourth quarter of 2015 relating to the election of bonus depreciation for 2014; and,
|
●
|
$43.3 million of transaction expenses and voluntary pension contributions primarily related to IMTT and Hawaii Gas in the third quarter of 2014.
|
Quarter Ended December 31, 2015
|
||||||||||||||||||||||||||||
IMTT
100%(1)
|
Atlantic
Aviation
|
Contracted
Power and
Energy(2)
|
Hawaii
Gas
|
MIC
Corporate
|
Proportionately
Combined(3)
|
Contracted
Power and
Energy
100%
|
||||||||||||||||||||||
Gross profit
|
82,069 | 101,952 | 25,118 | 14,822 | N/A | 223,961 | 28,124 | |||||||||||||||||||||
EBITDA excluding non-cash items
|
75,154 | 48,049 | 15,987 | 14,641 | (2,727 | ) | 151,104 | 18,734 | ||||||||||||||||||||
Free cash flow
|
47,885 | 33,096 | 10,509 | 8,390 | 974 | 100,854 | 12,382 | |||||||||||||||||||||
Quarter Ended December 31, 2014
|
||||||||||||||||||||||||||||
IMTT
100%(1)
|
Atlantic
Aviation
|
Contracted
Power and
Energy(2)
|
Hawaii
Gas
|
MIC
Corporate
|
Proportionately
Combined(3)
|
Contracted
Power and
Energy
100%
|
||||||||||||||||||||||
Gross profit
|
83,919 | 95,458 | 2,394 | 18,489 | N/A | 200,260 | 3,364 | |||||||||||||||||||||
EBITDA excluding non-cash items
|
74,915 | 44,194 | 176 | 13,796 | (3,200 | ) | 129,881 | 657 | ||||||||||||||||||||
Free cash flow
|
57,210 | 29,482 | (1,072 | ) | 10,940 | (5,732 | ) | 90,828 | (988 | ) | ||||||||||||||||||
Year Ended December 31, 2015
|
||||||||||||||||||||||||||||
IMTT
100%(1)
|
Atlantic
Aviation
|
Contracted
Power and
Energy(2)
|
Hawaii
Gas
|
MIC
Corporate
|
Proportionately
Combined(3)
|
Contracted
Power and
Energy
100%
|
||||||||||||||||||||||
Gross profit
|
327,317 | 410,155 | 94,095 | 76,899 | N/A | 908,466 | 104,896 | |||||||||||||||||||||
EBITDA excluding non-cash items
|
302,067 | 203,617 | 58,507 | 60,083 | (10,138 | ) | 614,136 | 68,156 | ||||||||||||||||||||
Free cash flow
|
194,570 | 153,023 | 16,005 | 44,118 | (15,080 | ) | 392,636 | 21,989 | ||||||||||||||||||||
Year Ended December 31, 2014
|
||||||||||||||||||||||||||||||
IMTT
50%(4)
|
IMTT
100%(1)
|
Atlantic
Aviation
|
Contracted
Power and
Energy(2)
|
Hawaii
Gas
|
MIC
Corporate
|
Proportionately
Combined(3)
|
IMTT
100%(5)
|
Contracted
Power and
Energy
100%
|
||||||||||||||||||||||
Gross profit
|
85,727
|
147,333 | 362,564 | 16,639 | 75,609 | N/A | 687,872 | 318,786 |
25,922
|
|||||||||||||||||||||
EBITDA excluding non-cash items
|
78,712
|
127,751 | 167,931 | 12,914 | 56,956 | (14,903 | ) | 429,361 | 285,175 |
22,723
|
||||||||||||||||||||
Free cash flow
|
31,324
|
83,577 | 125,475 | 5,103 | 35,902 | (19,035 | ) | 262,346 | 146,225 |
10,480
|
____________
|
||
N/A- Not applicable.
|
||
(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)
|
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.
|
|
●
|
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.
|
●
|
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.
|
●
|
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.
|
●
|
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 $60.0 million revolving credit facility and extended the maturities of these facilities to February 2021 from August 2017.
|
●
|
Fees payable to MIC’s manager were larger in each of the fourth quarter and full year periods as a result of the increased market capitalization of the Company in 2015 compared with 2014. Performance fees incurred in 2015 were larger than in 2014.
|
●
|
Selling, general and administrative costs were lower in both the fourth quarter and full year periods ended December 31, 2015 as a result of reduced professional service fees, primarily those associated with acquisitions.
|
●
|
Interest expense was higher in the quarter and full year periods primarily as a result of the holding company convertible notes being outstanding from July 16, 2014.
|
MACQUARIE INFRASTRUCTURE CORPORATION
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
($ 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
|
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($ 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%
|
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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 | ||||||||||||||||||||||||||
___________________________
|
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(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.
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(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.
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(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.
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(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.
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(5) Includes $6.9 million of tax refund received in the fourth quarter of 2015 relating to the election of bonus depreciation for 2014.
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(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.
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(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.
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(8) Our proportionate interest in IMTT prior to the acquisition of the remaining 50% interest on July 16, 2014.
|
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(9) Represents 100% of IMTT as a stand-alone business.
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