MIC Reports First Quarter 2018 Financial Results and Strategic Update
- Financial results in line with expectations:
-- Net income of $46.8 million, up 43.4%
-- Adjusted Proportionately Combined EBITDA excluding non-cash items of $178.7 million, broadly in line with the prior comparable period
-- Cash generated by operating activities of $144.1 million, up 12.9%
-- Adjusted Free Cash Flow of $135.9 million, down 7.5% from $146.9 million in the prior comparable period and flat with the $135.5 million in the fourth quarter of 2017
- Announces core priorities to build long-term value:
-- Progress repurposing of a portion of capacity and repositioning of International-Matex Tank Terminals (IMTT)
-- Efficient portfolio and capital management including strategic review of Contracted Power and the potential sale of a portion or all of the Bayonne Energy Center (BEC)
-- Increased balance sheet strength and flexibility through lower leverage
- Reaffirms EBITDA guidance for 2018 of $690 million to $720 million
- 2018 growth capital deployment expectations revised to approximately $300 million
- Authorizes cash dividend of $1.00 per share for the first quarter of 2018, consistent with guidance
NEW YORK, May 2, 2018 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE: MIC) today announced its first quarter 2018 financial results including an increase in net income of 43.4% to $46.8 million from $32.6 million in the prior comparable period on lower taxes and unrealized gains on derivative instruments.
Adjusted Proportionately Combined EBITDA excluding non-cash items of $178.7 million was broadly in line with the $180.2 million recorded in the prior comparable period.
Cash generated by operating activities of $144.1 million increased 12.9% over the $127.6 million recorded in the prior comparable period largely due to favorable movements in working capital.
Adjusted Free Cash Flow, which excludes certain one-time items including transaction related costs, was $135.9 million, down 7.5% from $146.9 million in the prior comparable period and flat on the $135.5 million reported in the fourth quarter of 2017. The decline was due primarily to increased maintenance capital expenditures and higher interest expense.
MIC also announced a quarterly cash dividend of $1.00 per share, consistent with guidance provided in February 2018.
MIC Chief Executive Officer Christopher Frost said: "MIC's financial results for the first quarter of 2018 reflect the underlying strength and diversity of our portfolio of infrastructure businesses."
"Atlantic Aviation maintained its strong performance and Contracted Power delivered a better than anticipated contribution. This performance was offset by the previously forecast and disclosed reduction in contribution from IMTT and higher expenses at MIC Hawaii. We have also taken meaningful steps to address the enhancements required at IMTT with respect to certain storage assets."
Drivers of first quarter 2018 segment results included:
- IMTT generated EBITDA of $78.1 million, down 6% compared with the first quarter in 2017, driven by the expected decline in average capacity utilization to 88.1% in the quarter versus 96.3% in the prior comparable period;
- Atlantic Aviation generated EBITDA of $70.9 million, up 9.3% over the prior comparable period, on increases in general aviation flight activity and contributions from fixed base operations acquired in 2017;
- Contracted Power generated EBITDA of $17.9 million, up 24.8% versus the prior comparable period, on better than anticipated demand for peaking power in New York and improved operating performance of wind facilities; and,
- MIC Hawaii generated EBITDA of $14.8 million, down 23.3% compared with the first quarter in 2017, driven by higher expenses.
Core Priorities
MIC provided the following additional information concerning its core priorities.
Repurposing and Repositioning of IMTT
In February 2018, MIC announced that it was undertaking initiatives related to the repurposing and repositioning of certain IMTT assets in response to shifts in global demand and trade flows impacting on IMTT's Lower Mississippi River and New York Harbor terminal locations.
The Company anticipates repurposing approximately three million barrels of storage capacity at IMTT away from primarily heavy and residual oils to gasoline and distillates, ethanol, chemicals and vegetable and/or tropical oils. Capacity utilization at IMTT is expected to average in the mid-80s percent in 2018 and to increase to the low 90s percent range in 2020, both subject to market conditions.
In 2018, IMTT is expected to invest approximately $15 million in the repurposing of storage capacity. IMTT is also expected to deploy an additional $10 to $20 million on projects designed to reposition or increase the capacity and enhance the capability of the business.
"As repurposing initiatives continue to be evaluated and the scope of capital projects refined, the forecast level of spending at IMTT in 2018 has decreased modestly. However, we continue to expect that up to $225 million will be deployed by IMTT on repurposing and repositioning in 2018 through 2020," said Frost.
Portfolio and Capital Management
MIC noted in its fourth quarter 2017 results release that it expected to deploy approximately $350 million of capital in growth projects across all of its businesses in 2018.
Through the end of March 2018 MIC had deployed or committed to deploy approximately $50 million on projects including the acquisition (on-field consolidation) of a fixed base operation by Atlantic Aviation and the ongoing development of additional power generating capacity at BEC.
With the refinement of investment at IMTT together with revised scoping of other capital projects, MIC now believes that its growth capital deployment in 2018 will be approximately $300 million.
MIC's construction of additional power generating capacity at BEC is nearing completion and, as announced in February, the Company continues to evaluate strategic options regarding its Contracted Power businesses including the sale of a portion or all of BEC.
On April 24, 2018, IMTT closed on the sale of its OMI Environmental Solutions, Inc. subsidiary. The oil spill cleanup business had generated negative EBITDA in each of the past eight quarters. After transaction costs and other payments, IMTT is expected to receive net cash of approximately $11 million subject to adjustments for changes in working capital.
Balance Sheet Strength
Proceeds from the sale of any portion of BEC, or from smaller, non-core assets generally, would likely be used to accelerate the de-levering of MIC from its current 4.9 times net debt to EBITDA (trailing twelve months adjusted for the full year impact of acquisitions) to a level closer to its low- to mid- four times target.
"We expect to fund our 2018 capital spending with a combination of Free Cash Flow not used to support our dividend, together with proceeds from the sale of any portion of BEC or smaller assets in our portfolio. Any additional sale proceeds will strengthen our balance sheet and increase our financial flexibility," commented Frost.
Guidance Reaffirmed
MIC reiterated its guidance for 2018 EBITDA in a range between $690 and $720 million, broadly in line with 2017. The guidance reflects both the seasonality in certain businesses and the previously forecast decline in average storage utilization at IMTT over the balance of the year.
The Company also provided the following segment level buildup of its 2018 EBITDA guidance:
| IMTT: |
$285 – $295 million |
| Atlantic Aviation: |
$265 – $275 million |
| Contracted Power: |
$95 – $100 million |
| MIC Hawaii: |
$60 – $65 million |
| Corporate/Other: |
$(15) – $(15) million |
First Quarter 2018 Dividend
The MIC board of directors authorized a cash dividend of $1.00 per share, or $4.00 annualized, for the first quarter of 2018. The dividend will be payable May 17, 2018 to shareholders of record on May 14, 2018. The Company reaffirmed its previous guidance for a distribution of $1.00 per share in each quarter in 2018.
"Given financial and operational performance of our businesses in the quarter that were consistent with our guidance, we believe that a dividend of $1.00 per share, per quarter, is sustainable through 2018," said Frost. "As we make progress against initiatives tied to our priorities, and subject to market conditions, we believe we will be well-positioned for future dividend growth."
| Summary Financial Information |
|||||||
| Quarter Ended |
Change |
||||||
| 2018 |
2017 |
$ |
% |
||||
| ($ In Thousands, Except Share and Per Share Data) (Unaudited) |
|||||||
| GAAP Metrics |
|||||||
| Net income |
$ 46,795 |
$ 32,638 |
14,157 |
43.4 |
|||
| Weighted average number of shares outstanding: |
84,821,453 |
82,138,168 |
2,683,285 |
3.3 |
|||
| Net income per share attributable to MIC |
$ 0.91 |
$ 0.44 |
0.47 |
106.8 |
|||
| Cash provided by operating activities(1) |
144,102 |
127,594 |
16,508 |
12.9 |
|||
| MIC Non-GAAP Metrics |
|||||||
| EBITDA excluding non-cash items(2) |
$ 180,919 |
$ 180,315 |
604 |
0.3 |
|||
| Shared service implementation costs(3) |
— |
2,354 |
(2,354) |
(100.0) |
|||
| Investment and acquisition costs(3) |
944 |
— |
944 |
NM |
|||
| Adjusted EBITDA excluding non-cash items(3) |
$ 181,863 |
$ 182,669 |
(806) |
(0.4) |
|||
| Cash interest(4) |
$ (29,813) |
$ (25,874) |
(3,939) |
(15.2) |
|||
| Cash taxes |
(3,871) |
(3,721) |
(150) |
(4.0) |
|||
| Maintenance capital expenditures |
(9,862) |
(4,476) |
(5,386) |
(120.3) |
|||
| Noncontrolling interest(5) |
(2,431) |
(1,671) |
(760) |
(45.5) |
|||
| Adjusted Free Cash Flow(3) |
$ 135,886 |
$ 146,927 |
(11,041) |
(7.5) |
|||
| NM — Not meaningful |
|||||||
| (1) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||||||
| (2) EBITDA excluding non-cash items is calculated as net income before interest expense, taxes, depreciation and amortization expense, management fees, pension expense and other non-cash (income) expense recorded in the consolidated statement of operations. See below for reconciliation of net income (loss) to EBITDA excluding non-cash items. |
|||||||
| (3) Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow exclude costs relating to certain investment and acquisition activities for the quarter ended March 31, 2018 and exclude costs relating to implementation of our shared services center for the quarter ended March 31, 2017. |
|||||||
| (4) Cash interest is calculated as interest expense, net, excluding the impact of non-cash adjustments for unrealized (gains) losses from derivative instruments, amortization of deferred financing costs and the amortization of debt discount recorded in the consolidated statement of operations. |
|||||||
| (5) Noncontrolling interest adjustment represents the portion of Free Cash Flow not attributable to MIC's ownership interest. |
|||||||
Conference Call and Webcast
When: MIC has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, May 3, 2018 during which management will review and comment on the first quarter 2018 results.
How: To listen to the conference call dial +1(650) 521-5252 or +1(877) 852-2928 at least 10 minutes prior to the scheduled start time. A webcast of the call will be accessible via the Company's website at www.macquarie.com/mic. Allow extra time prior to the call to visit the site and download the software needed to listen to the webcast.
Slides: MIC will prepare materials in support of its conference call. The materials will be available for downloading from the Company's website prior to the call.
Replay: For interested individuals unable to participate in the live conference call, a replay will be available after 2:00 p.m. on May 3, 2018 through midnight on May 11, 2018, at +1(404) 537-3406 or +1(855) 859-2056, Passcode: 4495099. An online archive of the webcast will be available on the Company's website for one year following the call.
About MIC
MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals; an airport services business, Atlantic Aviation; entities comprising an energy services, production and distribution segment, MIC Hawaii; and entities comprising a Contracted Power segment. For additional information, please visit the MIC website at www.macquarie.com/mic. MIC-G
Use of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics
In addition to MIC's results under U.S. GAAP, the Company uses certain non-GAAP measures to assess the performance and prospects of its businesses. In particular, MIC uses EBITDA excluding non-cash items, Free Cash Flow and certain proportionately combined financial metrics. Proportionately combined financial metrics, including Free Cash Flow, reflect MIC's proportionate interest in its wind and solar facilities.
MIC measures EBITDA excluding non-cash items as a reflection of its businesses' ability to effectively manage the volume of products sold or services provided, the operating margin earned on those transactions and the management of operating expenses independent of the capitalization and tax attributes of those businesses. The Company believes investors use EBITDA excluding non-cash items primarily as a measure to assess the operating performance of its businesses and to make comparisons with the operating performance of other businesses whose depreciation and amortization expense may vary widely from MIC's, particularly where acquisitions and other non-operating factors are involved. MIC defines EBITDA excluding non-cash items as net income (loss) or earnings — the most comparable GAAP measure — before interest, taxes, depreciation and amortization and non-cash items including impairments, unrealized derivative gains and losses, adjustments for other non-cash items and pension expense reflected in the statements of operations. EBITDA excluding non-cash items also excludes base management fees and performance fees, if any, whether paid in cash or stock.
Given MIC's varied ownership levels in its Contracted Power and MIC Hawaii segments, together with obligations to report the results of these businesses on a consolidated basis, GAAP measures such as net income (loss) do not fully reflect all of the items management considers in assessing the amount of cash generated based on its ownership interest in its businesses. The Company notes that the proportionately combined metrics used may be calculated in a different manner by other companies and may limit their usefulness as a comparative measure. Therefore, proportionately combined metrics should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of financial results reported under GAAP.
The Company's businesses can be characterized as owners of high-value, long-lived assets capable of generating substantial Free Cash Flow. MIC defines Free Cash Flow as cash from operating activities — the most comparable GAAP measure — which includes cash paid for interest, taxes and pension contributions, less maintenance capital expenditures, which includes principal repayments on capital lease obligations used to fund maintenance capital expenditures, and excludes changes in working capital.
Management uses Free Cash Flow as a measure of its ability to provide investors with an attractive risk-adjusted return by sustaining and potentially increasing MIC's quarterly cash dividend and funding a portion of the Company's growth. GAAP metrics such as net income (loss) do not provide MIC management with the same level of visibility to into the performance and prospects of the business as a result of: (i) the capital intensive nature of MIC's businesses and the generation of non-cash depreciation and amortization; (ii) shares issued to the Company's external manager under the Management Services Agreement, (iii) the Company's ability to defer all or a portion of current federal income taxes; (iv) non-cash unrealized gains or losses on derivative instruments; (v) amortization of tolling liabilities; (vi) gains (losses) on disposal of assets, and (vii) pension expense. Pension expenses primarily consist of interest expense, expected return on plan assets and amortization of actuarial and performance gains and losses. Any cash contributions to pension plans are reflected as a reduction to Free Cash Flow and are not included in pension expense. Management believes that external consumers of its financial statements, including investors and research analysts, use Free Cash Flow both to assess the Company's performance and as an indicator of its success in generating an attractive risk-adjusted return.
In its Quarterly Report on Form 10-Q, the Company has disclosed Free Cash Flow on a consolidated basis and for each of its operating segments and MIC Corporate. Management believes that both EBITDA excluding non-cash items and Free Cash Flow support a more complete and accurate understanding of the financial and operating performance of its businesses than would otherwise be achieved using GAAP results alone.
Free Cash Flow does not take into consideration required payments on indebtedness and other fixed obligations or other cash items that are excluded from MIC's definition of Free Cash Flow. Management notes that Free Cash Flow may be calculated differently by other companies thereby limiting its usefulness as a comparative measure. Free Cash Flow should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of its financial results reported under GAAP.
See "Reconciliation of Consolidated Net Income to EBITDA excluding non-cash items and a Reconciliation from Cash Provided by Operating Activities to Free Cash Flow" below.
Classification of Maintenance Capital Expenditures and Growth Capital Expenditures
MIC categorizes capital expenditures as either maintenance capital expenditures or growth capital expenditures. As neither maintenance capital expenditure nor growth capital expenditure is a GAAP term, the Company has adopted a framework to categorize specific capital expenditures. In broad terms, maintenance capital expenditures primarily maintain MIC's businesses at current levels of operations, capability, profitability or cash flow, while growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flow. Management considers a number of factors in determining whether a specific capital expenditure will be classified as maintenance or growth.
MIC does not bifurcate specific capital expenditures into growth and maintenance components. Each discrete capital expenditure is considered within the above framework and the entire capital expenditure is classified as either maintenance or growth.
Forward-Looking Statements
This press release contains forward-looking statements. MIC may, in some cases, use words such as "project", "believe", "anticipate", "plan", "expect", "estimate", "intend", "should", "would", "could", "potentially", or "may" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC's control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; risks associated with development, investment and expansion in the power industry; its regulatory environment establishing rate structures and monitoring quality of service; demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks; fuel and gas and other commodity costs; its ability to recover increases in costs from customers, cybersecurity risks, work interruptions or other labor stoppages; risks related to its shared services initiative; reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
MIC's actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
"Macquarie Group" refers to the Macquarie Group of companies, which comprises Macquarie Group Limited and its worldwide subsidiaries and affiliates. Macquarie Infrastructure Corporation is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Infrastructure Corporation.
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||
| March 31, 2018 |
December 31, 2017 |
||
| (Unaudited) |
|||
| ASSETS |
|||
| Current assets: |
|||
| Cash and cash equivalents |
$ 76,021 |
$ 47,121 |
|
| Restricted cash |
26,622 |
24,963 |
|
| Accounts receivable, less allowance for doubtful accounts of $1,073 and $895, respectively |
153,419 |
158,152 |
|
| Inventories |
38,743 |
36,955 |
|
| Prepaid expenses |
13,086 |
14,685 |
|
| Fair value of derivative instruments |
13,398 |
11,965 |
|
| Other current assets |
17,254 |
13,804 |
|
| Total current assets |
338,543 |
307,645 |
|
| Property, equipment, land and leasehold improvements, net |
4,644,350 |
4,659,614 |
|
| Investment in unconsolidated business |
9,408 |
9,526 |
|
| Goodwill |
2,068,799 |
2,068,668 |
|
| Intangible assets, net |
902,933 |
914,098 |
|
| Fair value of derivative instruments |
30,799 |
24,455 |
|
| Other noncurrent assets |
30,465 |
24,945 |
|
| Total assets |
$ 8,025,297 |
$ 8,008,951 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Due to Manager – related party |
$ 7,550 |
$ 5,577 |
|
| Accounts payable |
52,424 |
60,585 |
|
| Accrued expenses |
87,800 |
89,496 |
|
| Current portion of long-term debt |
51,208 |
50,835 |
|
| Fair value of derivative instruments |
974 |
1,710 |
|
| Other current liabilities |
51,266 |
47,762 |
|
| Total current liabilities |
251,222 |
255,965 |
|
| Long-term debt, net of current portion |
3,608,812 |
3,530,311 |
|
| Deferred income taxes |
644,143 |
632,070 |
|
| Fair value of derivative instruments |
2,449 |
4,668 |
|
| Tolling agreements – noncurrent |
50,651 |
52,595 |
|
| Other noncurrent liabilities |
184,344 |
182,639 |
|
| Total liabilities |
4,741,621 |
4,658,248 |
|
| Commitments and contingencies |
— |
— |
|
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||
| March 31, 2018 |
December 31, 2017 |
||
| (Unaudited) |
|||
| Stockholders' equity(1): |
|||
| Common stock ($0.001 par value; 500,000,000 authorized; 84,902,562 shares issued and outstanding at March 31, 2018 and 84,733,957 shares issued and outstanding at December 31, 2017) |
$ 85 |
$ 85 |
|
| Additional paid in capital |
1,728,712 |
1,840,033 |
|
| Accumulated other comprehensive loss |
(31,357) |
(29,993) |
|
| Retained earnings |
1,420,401 |
1,343,567 |
|
| Total stockholders' equity |
3,117,841 |
3,153,692 |
|
| Noncontrolling interests |
165,835 |
197,011 |
|
| Total equity |
3,283,676 |
3,350,703 |
|
| Total Liabilities and equity |
$ 8,025,297 |
$ 8,008,951 |
|
| (1) The Company is authorized to issue 100,000,000 shares of preferred stock, par value $0.001 per share. At March 31, 2018 and December 31, 2017, no preferred stock were issued or outstanding. The Company had 100 shares of special stock issued and outstanding to its Manager at March 31, 2018 and December 31, 2017. |
|||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||
| Quarter Ended March 31, |
|||
| 2018 |
2017 |
||
| Revenue |
|||
| Service revenue |
$ 402,609 |
$ 363,804 |
|
| Product revenue |
98,947 |
87,653 |
|
| Total revenue |
501,556 |
451,457 |
|
| Costs and expenses |
|||
| Cost of services |
187,470 |
154,706 |
|
| Cost of product sales |
53,385 |
47,225 |
|
| Selling, general and administrative |
86,957 |
76,952 |
|
| Fees to Manager – related party |
12,928 |
18,223 |
|
| Depreciation |
61,358 |
57,681 |
|
| Amortization of intangibles |
17,216 |
17,693 |
|
| Total operating expenses |
419,314 |
372,480 |
|
| Operating income |
82,242 |
78,977 |
|
| Other income (expense) |
|||
| Interest income |
80 |
34 |
|
| Interest expense(1) |
(18,790) |
(25,482) |
|
| Other income, net |
42 |
1,182 |
|
| Net income before income taxes |
63,574 |
54,711 |
|
| Provision for income taxes |
(16,779) |
(22,073) |
|
| Net income |
$ 46,795 |
$ 32,638 |
|
| Less: net loss attributable to noncontrolling interests |
(30,039) |
(3,377) |
|
| Net income attributable to MIC |
$ 76,834 |
$ 36,015 |
|
| Basic income per share attributable to MIC |
$ 0.91 |
$ 0.44 |
|
| Weighted average number of shares outstanding: basic |
84,821,453 |
82,138,168 |
|
| Diluted income per share attributable to MIC |
$ 0.88 |
$ 0.44 |
|
| Weighted average number of shares outstanding: diluted |
92,793,852 |
82,147,763 |
|
| Cash dividends declared per share |
$ 1.00 |
$ 1.32 |
|
| 1) Interest expense includes gains on derivative instruments of $15.1 million and $954,000 for the quarters ended March 31, 2018 and 2017, respectively. |
|||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||
|
|
|||
| 2018 |
2017(1) |
||
| Operating activities |
|||
| Net income |
$ 46,795 |
$ 32,638 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||
| Depreciation and amortization of property and equipment |
61,358 |
57,681 |
|
| Amortization of intangible assets |
17,216 |
17,693 |
|
| Amortization of debt financing costs |
3,049 |
2,202 |
|
| Amortization of debt discount |
897 |
619 |
|
| Adjustments to derivative instruments |
(10,732) |
1,972 |
|
| Fees to Manager – related party |
12,928 |
18,223 |
|
| Deferred taxes |
12,908 |
18,352 |
|
| Pension expense |
2,253 |
2,694 |
|
| Other non-cash expense (income), net |
563 |
(1,354) |
|
| Changes in other assets and liabilities, net of acquisitions: |
|||
| Accounts receivable |
4,242 |
1,059 |
|
| Inventories |
(2,141) |
(3,718) |
|
| Prepaid expenses and other current assets |
(1,798) |
(7,559) |
|
| Due to Manager – related party |
(68) |
11 |
|
| Accounts payable and accrued expenses |
(5,945) |
(12,382) |
|
| Income taxes payable |
1,559 |
1,341 |
|
| Other, net |
1,018 |
(1,878) |
|
| Net cash provided by operating activities |
144,102 |
127,594 |
|
| Investing activities |
|||
| Acquisitions of businesses and investments, net of cash acquired |
(11.433) |
— |
|
| Purchases of property and equipment |
(48,181) |
(59,869) |
|
| Loan to project developer |
(10,800) |
(8,000) |
|
| Loan repayment from project developer |
5,217 |
— |
|
| Other, net |
86 |
50 |
|
| Net cash used in investing activities |
(65,111) |
(67,819) |
|
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||
| Quarter Ended March 31, |
|||
| 2018 |
2017(1) |
||
| Financing activities |
|||
| Proceeds from long-term debt |
$ 141,500 |
$ 104,000 |
|
| Payment of long-term debt |
(63,848) |
(72,634) |
|
| Proceeds from the issuance of shares |
125 |
2,049 |
|
| Dividends paid to common stockholders |
(122,259) |
(107,714) |
|
| Contributions received from noncontrolling interests |
271 |
— |
|
| Distributions paid to noncontrolling interests |
(1,397) |
(1,351) |
|
| Offering and equity raise costs paid |
— |
(69) |
|
| Debt financing costs paid |
(2,595) |
(435) |
|
| Payment of capital lease obligations |
(22) |
(21) |
|
| Net cash used in financing activities |
(48,225) |
(76,175) |
|
| Effect of exchange rate changes on cash and cash equivalents |
(207) |
— |
|
| Net change in cash, cash equivalents and restricted cash |
30,559 |
(16,400) |
|
| Cash, cash equivalents and restricted cash, beginning of period |
72,084 |
61,257 |
|
| Cash, cash equivalents and restricted cash, end of period |
$ 102,643 |
$ 44,857 |
|
| Supplemental disclosures of cash flow information |
|||
| Non-cash investing and financing activities: |
|||
| Accrued equity offering costs |
$ 80 |
$ 93 |
|
| Accrued financing costs |
$ 233 |
$ — |
|
| Accrued purchases of property and equipment |
$ 19,038 |
$ 25,598 |
|
| Issuance of shares to Manager |
$ 10,887 |
$ 18,462 |
|
| Conversion of convertible senior notes to shares |
$ 6 |
$ 17 |
|
| Distributions payable to noncontrolling interests |
$ 33 |
$ 29 |
|
| Taxes paid, net |
$ 2,040 |
$ 2,379 |
|
| Interest paid |
$ 25,986 |
$ 26,764 |
|
| (1) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||
| The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated condensed balance sheets that sum to the total of the same amounts presented in the consolidated condensed statements of cash flows: |
|||
| As of March 31, |
|||
| 2018 |
2017 |
||
| Cash and cash equivalents |
$ 76,021 |
$ 29,618 |
|
| Restricted cash – current |
26,622 |
15,169 |
|
| Restricted cash – non-current(2) |
— |
70 |
|
| Total of cash, cash equivalents and restricted cash shown in the |
$ 102,643 |
$ 44,857 |
|
| (2) Restricted cash - non-current is included in Other noncurrent assets in the consolidated condensed balance sheet. |
|||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||||||
| Quarter Ended March 31, |
Change Favorable/ |
||||||
| 2018 |
2017 |
$ |
% |
||||
| (In Thousands, Except Share and Per Share Data) (Unaudited) |
|||||||
| Revenue |
|||||||
| Service revenue |
$ 402,609 |
$ 363,804 |
38,805 |
10.7 |
|||
| Product revenue |
98,947 |
87,653 |
11,294 |
12.9 |
|||
| Total revenue |
501,556 |
451,457 |
50,099 |
11.1 |
|||
| Costs and expenses |
|||||||
| Cost of services |
187,470 |
154,706 |
(32,764) |
(21.2) |
|||
| Cost of product sales |
53,385 |
47,225 |
(6,160) |
(13.0) |
|||
| Selling, general and administrative |
86,957 |
76,952 |
(10,005) |
(13.0) |
|||
| Fees to Manager – related party |
12,928 |
18,223 |
5,295 |
29.1 |
|||
| Depreciation |
61,358 |
57,681 |
(3,677) |
(6.4) |
|||
| Amortization of intangibles |
17,216 |
17,693 |
477 |
2.7 |
|||
| Total operating expenses |
419,314 |
372,480 |
(46,834) |
(12.6) |
|||
| Operating income |
82,242 |
78,977 |
3,265 |
4.1 |
|||
| Other income (expense) |
|||||||
| Interest income |
80 |
34 |
46 |
135.3 |
|||
| Interest expense(1) |
(18,790) |
(25,482) |
6,692 |
26.3 |
|||
| Other income, net |
42 |
1,182 |
(1,140) |
(96.4) |
|||
| Net income before income taxes |
63,574 |
54,711 |
8,863 |
16.2 |
|||
| Provision for income taxes |
(16,779) |
(22,073) |
5,294 |
24.0 |
|||
| Net income |
$ 46,795 |
$ 32,638 |
14,157 |
43.4 |
|||
| Less: net loss attributable to noncontrolling interests |
(30,039) |
(3,377) |
26,662 |
NM |
|||
| Net income attributable to MIC |
$ 76,834 |
$ 36,015 |
40,819 |
113.3 |
|||
| Basic income per share attributable to MIC |
$ 0.91 |
$ 0.44 |
0.47 |
106.8 |
|||
| Weighted average number of shares outstanding: |
|||||||
| basic |
84,821,453 |
82,138,168 |
2,683,285 |
3.3 |
|||
| NM — Not meaningful |
|||||||
| (1) Interest expense includes gains on derivative instruments of $15.1 million and $954,000 for the quarters ended March 31, 2018 and 2017, respectively. |
|||||||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||||||||
| Quarter Ended March 31, |
Change |
||||||||
| 2018 |
2017 |
$ |
% |
||||||
| ($ In Thousands) (Unaudited) |
|||||||||
| Net income |
$ 46,795 |
$ 32,638 |
|||||||
| Interest expense, net(1) |
18,710 |
25,448 |
|||||||
| Provision for income taxes |
16,779 |
22,073 |
|||||||
| Depreciation |
61,358 |
57,681 |
|||||||
| Amortization of intangibles |
17,216 |
17,693 |
|||||||
| Fees to Manager-related party |
12,928 |
18,223 |
|||||||
| Pension expense(2) |
2,253 |
2,694 |
|||||||
| Other non-cash expense, net(3) |
4,880 |
3,865 |
|||||||
| EBITDA excluding non-cash items |
$ 180,919 |
$ 180,315 |
604 |
0.3 |
|||||
| EBITDA excluding non-cash items |
$ 180,919 |
$ 180,315 |
|||||||
| Interest expense, net(1) |
(18,710) |
(25,448) |
|||||||
| Adjustments to derivative instruments recorded in interest expense(1) |
(15,049) |
(3,247) |
|||||||
| Amortization of debt financing costs(1) |
3,049 |
2,202 |
|||||||
| Amortization of debt discount(1) |
897 |
619 |
|||||||
| Provision for current income taxes |
(3,871) |
(3,721) |
|||||||
| Changes in working capital(4) |
(3,133) |
(23,126) |
|||||||
| Cash provided by operating activities |
144,102 |
127,594 |
|||||||
| Changes in working capital(4) |
3,133 |
23,126 |
|||||||
| Maintenance capital expenditures |
(9,862) |
(4,476) |
|||||||
| Free cash flow |
$ 137,373 |
$ 146,244 |
(8,871) |
(6.1) |
|||||
| 1) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and non- cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023. |
|||||||||
| (2) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||||
| (3) Other non-cash expense, net, primarily includes non-cash amortization of tolling liabilities, unrealized gains (losses) on commodity hedges and non-cash gains (losses) related to disposal of assets. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion. |
|||||||||
| (4) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||||||||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||||||
| Quarter Ended March 31, |
Change Favorable/ (Unfavorable) |
||||||
| 2018 |
2017 |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Free Cash Flow – Consolidated basis |
$ 137,373 |
$ 146,244 |
(8,871) |
(6.1) |
|||
| 100% of Contracted Power Free Cash Flow included in |
(14,527) |
(9,839) |
|||||
| MIC's share of Contracted Power Free Cash Flow |
12,099 |
8,171 |
|||||
| 100% of MIC Hawaii Free Cash Flow included in |
(10,750) |
(14,936) |
|||||
| MIC's share of MIC Hawaii Free Cash Flow |
10,747 |
14,933 |
|||||
| Free Cash Flow – Proportionately Combined basis |
$ 134,942 |
$ 144,573 |
(9,631) |
(6.7) |
|||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||||||
| IMTT |
|||||||
| Quarter Ended March 31, |
|||||||
| 2018 |
2017 |
Change Favorable/ |
|||||
| $ |
$ |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Revenue |
139,389 |
138,817 |
572 |
0.4 |
|||
| Cost of services |
54,425 |
49,846 |
(4,579) |
(9.2) |
|||
| Selling, general and administrative expenses |
9,306 |
9,038 |
(268) |
(3.0) |
|||
| Depreciation and amortization |
33,249 |
31,520 |
(1,729) |
(5.5) |
|||
| Operating income |
42,409 |
48,413 |
(6,004) |
(12.4) |
|||
| Interest expense, net(1) |
(7,739) |
(8,757) |
1,018 |
11.6 |
|||
| Other income, net |
296 |
708 |
(412) |
(58.2) |
|||
| Provision for income taxes |
(9,686) |
(16,548) |
6,862 |
41.5 |
|||
| Net income |
25,280 |
23,816 |
1,464 |
6.1 |
|||
| Reconciliation of net income to EBITDA excluding |
|||||||
| Net income |
25,280 |
23,816 |
|||||
| Interest expense, net(1) |
7,739 |
8,757 |
|||||
| Provision for income taxes |
9,686 |
16,548 |
|||||
| Depreciation and amortization |
33,249 |
31,520 |
|||||
| Pension expense(2) |
2,080 |
2,416 |
|||||
| Other non-cash expense, net |
94 |
68 |
|||||
| EBITDA excluding non-cash items |
78,128 |
83,125 |
(4,997) |
(6.0) |
|||
| EBITDA excluding non-cash items |
78,128 |
83,125 |
|||||
| Interest expense, net(1) |
(7,739) |
(8,757) |
|||||
| Adjustments to derivative instruments recorded in |
|||||||
| interest expense(1) |
(4,042) |
(1,320) |
|||||
| Amortization of debt financing costs(1) |
411 |
411 |
|||||
| Provision for current income taxes |
(4,276) |
(2,258) |
|||||
| Changes in working capital |
5,089 |
736 |
|||||
| Cash provided by operating activities |
67,571 |
71,937 |
|||||
| Changes in working capital |
(5,089) |
(736) |
|||||
| Maintenance capital expenditures |
(6,989) |
(2,460) |
|||||
| Free cash flow |
55,493 |
68,741 |
(13,248) |
(19.3) |
|||
| 1) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
|||||||
| (2) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||
| Atlantic Aviation |
|||||||
| Quarter Ended March 31, |
|||||||
| 2018 |
2017 |
Change Favorable/ |
|||||
| $ |
$ |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Revenue |
247,202 |
212,753 |
34,449 |
16.2 |
|||
| Cost of services (exclusive of depreciation and amortization |
116,693 |
93,922 |
(22,771) |
(24.2) |
|||
| Gross margin |
130,509 |
118,831 |
11,678 |
9.8 |
|||
| Selling, general and administrative expenses |
59,939 |
53,890 |
(6,049) |
(11.2) |
|||
| Depreciation and amortization |
25,479 |
25,033 |
(446) |
(1.8) |
|||
| Operating income |
45,091 |
39,908 |
5,183 |
13.0 |
|||
| Interest expense, net(1) |
(69) |
(3,446) |
3,377 |
98.0 |
|||
| Other income (expense), net |
56 |
(86) |
142 |
165.1 |
|||
| Provision for income taxes |
(12,111) |
(14,550) |
2,439 |
16.8 |
|||
| Net income |
32,967 |
21,826 |
11,141 |
51.0 |
|||
| Reconciliation of net income to EBITDA excluding non-cash |
|||||||
| Net income |
32,967 |
21,826 |
|||||
| Interest expense, net(1) |
69 |
3,446 |
|||||
| Provision for income taxes |
12,111 |
14,550 |
|||||
| Depreciation and amortization |
25,479 |
25,033 |
|||||
| Pension expense(2) |
5 |
5 |
|||||
| Other non-cash expense, net |
312 |
62 |
|||||
| EBITDA excluding non-cash items |
70,943 |
64,922 |
6,021 |
9.3 |
|||
| EBITDA excluding non-cash items |
70,943 |
64,922 |
|||||
| Interest expense, net(1) |
(69) |
(3,446) |
|||||
| Convertible senior notes interest(3) |
(2,012) |
(1,744) |
|||||
| Adjustments to derivative instruments recorded in interest |
(4,367) |
133 |
|||||
| Amortization of debt financing costs(1) |
279 |
314 |
|||||
| Provision for current income taxes |
(6,533) |
(2,872) |
|||||
| Changes in working capital |
6,019 |
(6,116) |
|||||
| Cash provided by operating activities |
64,260 |
51,191 |
|||||
| Changes in working capital |
(6,019) |
6,116 |
|||||
| Maintenance capital expenditures |
(1,302) |
(925) |
|||||
| Free cash flow |
56,939 |
56,382 |
557 |
1.0 |
|||
| (1) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
|||||||
| (2) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||
| (3) Represents the cash interest expense reclassified from MIC Corporate related to the 2.00% Convertible Senior Notes due October 2023, proceeds of which were used to pay down a portion of Atlantic Aviation's credit facility in October 2016. |
|||||||
| Contracted Power |
|||||||
| Quarter Ended March 31, |
|||||||
| 2018 |
2017 |
Change |
|||||
| $ |
$ |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Product revenue |
35,287 |
28,070 |
7,217 |
25.7 |
|||
| Cost of product sales |
5,837 |
4,859 |
(978) |
(20.1) |
|||
| Selling, general and administrative expenses |
7,512 |
5,165 |
(2,347) |
(45.4) |
|||
| Depreciation and amortization |
15,527 |
15,340 |
(187) |
(1.2) |
|||
| Operating income |
6,411 |
2,706 |
3,705 |
136.9 |
|||
| Interest expense, net(1) |
(885) |
(5,383) |
4,498 |
83.6 |
|||
| Other income, net |
1,005 |
765 |
240 |
31.4 |
|||
| Provision for income taxes |
(950) |
(27) |
(923) |
NM |
|||
| Net income (loss) |
5,581 |
(1,939) |
7,520 |
NM |
|||
| Less: net loss attributable to noncontrolling interest |
(30,056) |
(3,349) |
26,707 |
NM |
|||
| Net income attributable to MIC |
35,637 |
1,410 |
34,227 |
NM |
|||
| Reconciliation of net income (loss) to EBITDA |
|||||||
| Net income (loss) |
5,581 |
(1,939) |
|||||
| Interest expense, net(1) |
885 |
5,383 |
|||||
| Provision for income taxes |
950 |
27 |
|||||
| Depreciation and amortization |
15,527 |
15,340 |
|||||
| Other non-cash income, net(2) |
(1,888) |
(2,024) |
|||||
| EBITDA excluding non-cash items |
21,055 |
16,787 |
4,268 |
25.4 |
|||
| EBITDA excluding non-cash items |
21,055 |
16,787 |
|||||
| Interest expense, net(1) |
(885) |
(5,383) |
|||||
| Adjustments to derivative instruments recorded in |
|||||||
| interest expense(1) |
(5,970) |
(1,834) |
|||||
| Amortization of debt financing costs(1) |
379 |
379 |
|||||
| Provision for current income taxes |
(16) |
(88) |
|||||
| Changes in working capital(3) |
919 |
(585) |
|||||
| Cash provided by operating activities |
15,482 |
9,276 |
|||||
| Changes in working capital(3) |
(919) |
585 |
|||||
| Maintenance capital expenditures |
(36) |
(22) |
|||||
| Free cash flow |
14,527 |
9,839 |
4,688 |
47.6 |
|||
| NM — Not meaningful |
|||||||
| (1) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. |
|||||||
| (2) Other non-cash income, net, primarily includes amortization of tolling liabilities. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion. |
|||||||
| (3) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||||||
| MIC Hawaii |
|||||||
| Quarter Ended March 31, |
|||||||
| 2018 |
2017 |
Change |
|||||
| $ |
$ |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Product revenue |
63,660 |
59,583 |
4,077 |
6.8 |
|||
| Service revenue |
17,249 |
13,457 |
3,792 |
28.2 |
|||
| Total revenue |
80,909 |
73,040 |
7,869 |
10.8 |
|||
| Cost of product sales (exclusive of depreciation and amortization shown |
|||||||
| separately below) |
47,548 |
42,366 |
(5,182) |
(12.2) |
|||
| Cost of services (exclusive of depreciation and amortization shown separately below) |
16,352 |
10,940 |
(5,412) |
(49.5) |
|||
| Cost of revenue – total |
63,900 |
53,306 |
(10,594) |
(19.9) |
|||
| Gross margin |
17,009 |
19,734 |
(2,725) |
(13.8) |
|||
| Selling, general and administrative expenses |
7,229 |
6,085 |
(1,144) |
(18.8) |
|||
| Depreciation and amortization |
4,155 |
3,481 |
(674) |
(19.4) |
|||
| Operating income |
5,625 |
10,168 |
(4,543) |
(44.7) |
|||
| Interest expense, net(1) |
(1,290) |
(1,711) |
421 |
24.6 |
|||
| Other expense, net |
(1,319) |
(205) |
(1,114) |
NM |
|||
| Provision for income taxes |
(805) |
(3,379) |
2,574 |
76.2 |
|||
| Net income |
2,211 |
4,873 |
(2,662) |
(54.6) |
|||
| Less: net income (loss) attributable to noncontrolling interests |
17 |
(28) |
(45) |
(160.7) |
|||
| Net income attributable to MIC |
2,194 |
4,901 |
(2,707) |
(55.2) |
|||
| Reconciliation of net income to EBITDA excluding non-cash items |
|||||||
| and a reconciliation of cash provided by operating activities to Free |
|||||||
| Net income |
2,211 |
4,873 |
|||||
| Interest expense, net(1) |
1,290 |
1,711 |
|||||
| Provision for income taxes |
805 |
3,379 |
|||||
| Depreciation and amortization |
4,155 |
3,481 |
|||||
| Pension expense(2) |
127 |
273 |
|||||
| Other non-cash expense, net(3) |
6,199 |
5,571 |
|||||
| EBITDA excluding non-cash items |
14,787 |
19,288 |
(4,501) |
(23.3) |
|||
| EBITDA excluding non-cash items |
14,787 |
19,288 |
|||||
| Interest expense, net(1) |
(1,290) |
(1,711) |
|||||
| Adjustments to derivative instruments recorded in interest expense(1) |
(670) |
(226) |
|||||
| Amortization of debt financing costs(1) |
97 |
105 |
|||||
| Provision for current income taxes |
(639) |
(1,451) |
|||||
| Changes in working capital(4) |
(6,139) |
(8,727) |
|||||
| Cash provided by operating activities |
6,146 |
7,278 |
|||||
| Changes in working capital(4) |
6,139 |
8,727 |
|||||
| Maintenance capital expenditures |
(1,535) |
(1,069) |
|||||
| Free cash flow |
10,750 |
14,936 |
(4,186) |
(28.0) |
|||
| NM — Not meaningful |
|||||||
| (1) Interest expense, net, includes adjustments to derivative instruments related to interest rate swaps and non-cash amortization of deferred financing fees. |
|||||||
| (2) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||
| (3) Other non-cash expense, net, primarily includes non-cash adjustments related to unrealized gains (losses) on commodity hedges and non-cash gains (losses) related to disposal of assets. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion. |
|||||||
| (4) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||||||
| Corporate and Other |
|||||||
| Quarter Ended March 31, |
|||||||
| 2018 |
2017 |
Change |
|||||
| $ |
$ |
$ |
% |
||||
| ($ In Thousands) (Unaudited) |
|||||||
| Fees to Manager-related party |
12,928 |
18,223 |
5,295 |
29.1 |
|||
| Selling, general and administrative expenses(1) |
4,202 |
3,995 |
(207) |
(5.2) |
|||
| Depreciation |
164 |
— |
(164) |
NM |
|||
| Operating loss |
(17,294) |
(22,218) |
4,924 |
22.2 |
|||
| Interest expense, net(2) |
(8,727) |
(6,151) |
(2,576) |
(41.9) |
|||
| Other income, net |
4 |
— |
4 |
NM |
|||
| Benefit for income taxes |
6,773 |
12,431 |
(5,658) |
(45.5) |
|||
| Net loss |
(19,244) |
(15,938) |
(3,306) |
(20.7) |
|||
| Reconciliation of net loss to EBITDA excluding non-cash items and a reconciliation of cash used in operating activities to Free Cash Flow: |
|||||||
| Net loss |
(19,244) |
(15,938) |
|||||
| Interest expense, net(2) |
8,727 |
6,151 |
|||||
| Benefit for income taxes |
(6,773) |
(12,431) |
|||||
| Depreciation |
164 |
— |
|||||
| Fees to Manager-related party |
12,928 |
18,223 |
|||||
| Pension expense(3) |
41 |
— |
|||||
| Other non-cash expense |
163 |
188 |
|||||
| EBITDA excluding non-cash items |
(3,994) |
(3,807) |
(187) |
(4.9) |
|||
| EBITDA excluding non-cash items |
(3,994) |
(3,807) |
|||||
| Interest expense, net(2) |
(8,727) |
(6,151) |
|||||
| Convertible senior notes interest(4) |
2,012 |
1,744 |
|||||
| Amortization of debt financing costs(2) |
1,883 |
993 |
|||||
| Amortization of debt discount(2) |
897 |
619 |
|||||
| Benefit for current income taxes |
7,593 |
2,948 |
|||||
| Changes in working capital |
(9,021) |
(8,434) |
|||||
| Cash used in operating activities |
(9,357) |
(12,088) |
|||||
| Changes in working capital |
9,021 |
8,434 |
|||||
| Free cash flow |
(336) |
(3,654) |
3,318 |
90.8 |
|||
| NM — Not meaningful |
|||||||
| (1) For the quarter ended March 31, 2018, selling, general and administrative expenses included $944,000 of costs incurred in connection with the evaluation of various investment and acquisition opportunities. For the quarter ended March 31, 2017, selling, general and administrative expenses included $2.3 million of costs related to the implementation of a shared service center. |
|||||||
| (2) Interest expense, net, included non-cash amortization of deferred financing fees and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023. |
|||||||
| (3) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||
| (4) Represents the cash interest expense reclassified to Atlantic Aviation related to the 2.00% Convertible Senior Notes due October 2023, proceeds of which were used to pay down a portion of Atlantic Aviation's credit facility in October 2016. |
|||||||
| MACQUARIE INFRASTRUCTURE CORPORATION |
|||||||||||||||
| For the Quarter Ended March 31, 2018 |
|||||||||||||||
| IMTT |
Atlantic |
Contracted |
MIC |
MIC |
Proportionately |
Contracted |
MIC |
||||||||
| ($ In Thousands) (Unaudited) |
|||||||||||||||
| Net income (loss) |
25,280 |
32,967 |
4,268 |
2,210 |
(19,244) |
45,481 |
5,581 |
2,211 |
|||||||
| Interest expense, net(3) |
7,739 |
69 |
896 |
1,292 |
8,727 |
18,723 |
885 |
1,290 |
|||||||
| Provision (benefit) for income taxes |
9,686 |
12,111 |
950 |
805 |
(6,773) |
16,779 |
950 |
805 |
|||||||
| Depreciation and amortization |
|||||||||||||||
| of intangibles |
33,249 |
25,479 |
13,644 |
4,150 |
164 |
76,686 |
15,527 |
4,155 |
|||||||
| Fees to Manager-related party |
— |
— |
— |
— |
12,928 |
12,928 |
— |
— |
|||||||
| Pension expense(4) |
2,080 |
5 |
— |
127 |
41 |
2,253 |
— |
127 |
|||||||
| Other non-cash expense (income), net(5) |
94 |
312 |
(1,884) |
6,199 |
163 |
4,884 |
(1,888) |
6,199 |
|||||||
| EBITDA excluding non-cash items |
78,128 |
70,943 |
17,874 |
14,783 |
(3,994) |
177,734 |
21,055 |
14,787 |
|||||||
| items |
78,128 |
70,943 |
17,874 |
14,783 |
(3,994) |
177,734 |
21,055 |
14,787 |
|||||||
| Interest expense, net(3) |
(7,739) |
(69) |
(896) |
(1,292) |
(8,727) |
(18,723) |
(885) |
(1,290) |
|||||||
| Convertible senior notes |
|||||||||||||||
| interest(6) |
— |
(2,012) |
— |
— |
2,012 |
— |
— |
— |
|||||||
| Adjustments to derivative |
|||||||||||||||
| instruments recorded in |
|||||||||||||||
| interest expense, net(3) |
(4,042) |
(4,367) |
(5,201) |
(667) |
— |
(14,277) |
(5,970) |
(670) |
|||||||
| Amortization of debt |
|||||||||||||||
| financing costs(3) |
411 |
279 |
365 |
97 |
1,883 |
3,035 |
379 |
97 |
|||||||
| Amortization of debt |
|||||||||||||||
| discount(3) |
— |
— |
— |
— |
897 |
897 |
— |
— |
|||||||
| (Provision) benefit for current |
|||||||||||||||
| income taxes |
(4,276) |
(6,533) |
(16) |
(639) |
7,593 |
(3,871) |
(16) |
(639) |
|||||||
| Changes in working capital |
5,089 |
6,019 |
1,189 |
(6,139) |
(9,021) |
(2,863) |
919 |
(6,139) |
|||||||
| Cash provided by (used in) |
|||||||||||||||
| operating activities |
67,571 |
64,260 |
13,315 |
6,143 |
(9,357) |
141,932 |
15,482 |
6,146 |
|||||||
| Changes in working capital |
(5,089) |
(6,019) |
(1,189) |
6,139 |
9,021 |
2,863 |
(919) |
6,139 |
|||||||
| Maintenance capital |
|||||||||||||||
| expenditures |
(6,989) |
(1,302) |
(27) |
(1,535) |
— |
(9,853) |
(36) |
(1,535) |
|||||||
| Proportionately Combined Free Cash Flow |
55,493 |
56,939 |
12,099 |
10,747 |
(336) |
134,942 |
14,527 |
10,750 |
|||||||
| For the Quarter Ended March 31, 2017 |
|||||||||||||||
| IMTT |
Atlantic |
Contracted Power(1) |
MIC |
MIC |
Proportionately |
Contracted |
MIC |
||||||||
| ($ in Thousands) (Unaudited) |
|||||||||||||||
| Net income (loss) |
23,816 |
21,826 |
(1,954) |
4,875 |
(15,938) |
32,625 |
(1,939) |
4,873 |
|||||||
| Interest expense, net(3) |
8,757 |
3,446 |
4,790 |
1,710 |
6,151 |
24,854 |
5,383 |
1,711 |
|||||||
| Provision (benefit) for income taxes |
16,548 |
14,550 |
27 |
3,379 |
(12,431) |
22,073 |
27 |
3,379 |
|||||||
| Depreciation and amortization |
|||||||||||||||
| of intangibles |
31,520 |
25,033 |
13,461 |
3,476 |
— |
73,490 |
15,340 |
3,481 |
|||||||
| Fees to Manager-related party |
— |
— |
— |
— |
18,223 |
18,223 |
— |
— |
|||||||
| Pension expense(4) |
2,416 |
5 |
— |
273 |
— |
2,694 |
— |
273 |
|||||||
| Other non-cash expense(income), net(5) |
68 |
62 |
(2,003) |
5,571 |
188 |
3,886 |
(2,024) |
5,571 |
|||||||
| EBITDA excluding non-cash items |
83,125 |
64,922 |
14,321 |
19,284 |
(3,807) |
177,845 |
16,787 |
19,288 |
|||||||
| EBITDA excluding non-cash |
|||||||||||||||
| items |
83,125 |
64,922 |
14,321 |
19,284 |
(3,807) |
177,845 |
16,787 |
19,288 |
|||||||
| Interest expense, net(3) |
(8,757) |
(3,446) |
(4,790) |
(1,710) |
(6,151) |
(24,854) |
(5,383) |
(1,711) |
|||||||
| Convertible senior notes |
|||||||||||||||
| interest(6) |
— |
(1,744) |
— |
— |
1,744 |
— |
— |
— |
|||||||
| Adjustments to derivative |
|||||||||||||||
| instruments recorded in |
|||||||||||||||
| interest expense, net(3) |
(1,320) |
133 |
(1,614) |
(226) |
— |
(3,027) |
(1,834) |
(226) |
|||||||
| Amortization of debt |
|||||||||||||||
| financing costs(3) |
411 |
314 |
364 |
105 |
993 |
2,187 |
379 |
105 |
|||||||
| Amortization of debt |
|||||||||||||||
| discount(3) |
— |
— |
— |
— |
619 |
619 |
— |
— |
|||||||
| (Provision) benefit for current income taxes |
(2,258) |
(2,872) |
(88) |
(1,451) |
2,948 |
(3,721) |
(88) |
(1,451) |
|||||||
| Changes in working capital(7) |
736 |
(6,116) |
(879) |
(8,726) |
(8,434) |
(23,419) |
(585) |
(8,727) |
|||||||
| Cash provided by (used in) operating activities |
71,937 |
51,191 |
7,314 |
7,276 |
(12,088) |
125,630 |
9,276 |
7,278 |
|||||||
| Changes in working capital(7) |
(736) |
6,116 |
879 |
8,726 |
8,434 |
23,419 |
585 |
8,727 |
|||||||
| Maintenance capital expenditures |
(2,460) |
(925) |
(22) |
(1,069) |
— |
(4,476) |
(22) |
(1,069) |
|||||||
| Proportionately Combined Free Cash Flow |
68,741 |
56,382 |
8,171 |
14,933 |
(3,654) |
144,573 |
9,839 |
14,936 |
|||||||
| (1) Represents MIC's proportionately combined interests in the businesses comprising these reportable segments. |
|||||||||||||||
| (2) The sum of the amounts attributable to MIC in proportion to its ownership. |
|||||||||||||||
| (3) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and non- cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023. |
|||||||||||||||
| (4) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. |
|||||||||||||||
| (5) Other non-cash expense (income), net, primarily includes non-cash amortization of tolling liabilities, unrealized gains (losses) on commodity hedges and non-cash gains (losses) related to disposal of assets. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion. |
|||||||||||||||
| (6) Represents the cash interest expense reclassified from MIC Corporate to Atlantic Aviation related to the 2.00% Convertible Senior Notes due October 2023, proceeds of which were used to pay down a portion of Atlantic Aviation's credit facility in October 2016. |
|||||||||||||||
| (7) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended March 31, 2018. |
|||||||||||||||
SOURCE Macquarie Infrastructure Corporation
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