Le Lézard
Classified in: Mining industry, Business
Subjects: ERN, CCA, ERP, FVT

MIC Reports Fourth Quarter And Full Year 2018 Results


NEW YORK, Feb. 20, 2019 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE: MIC) reported financial results for 2018 that were in line with the Company's guidance.

Net income from continuing operations declined to $64.6 million in 2018 from $433.8 million in 2017 primarily as a result of the absence of a $316.4 million tax benefit related to the enactment of the Tax Cuts and Jobs Act in December 2017.

Cash generated by continuing operating activities increased $9.1 million to $473.2 million in 2018 versus 2017 as a result of favorable movements in working capital including improved collection of higher balances.

MIC's continuing operations consist of International-Matex Tank Terminals (IMTT), Atlantic Aviation, the businesses comprising its MIC Hawaii segment and several smaller businesses that individually and collectively do not constitute a reportable segment and are recorded as components of Corporate and Other. Results for the businesses previously reported as the substantial components of Contracted Power have been characterized as Discontinued Operations in the current and prior comparable periods and the Contracted Power segment has been eliminated.

Christopher Frost, MIC's chief executive officer, said of the Company's results for 2018: "Our financial results were in line with our expectations and reflect an ongoing focus on our strategic priorities. In particular, the repurposing and repositioning initiatives at IMTT are reinforcing the infrastructure characteristics of that business."

"The sales of the Bayonne Energy Center and smaller, non-core businesses in 2018 provided at least two years of funding for attractive growth opportunities across all of MIC. These proceeds have also been used to reduce MIC's overall indebtedness and, combined with the successful refinancing and amendments to debt facilities at Atlantic Aviation and IMTT, respectively, in December, significantly increased our financial flexibility. In short, we are well-positioned to continue to support our current dividend and to invest in increasing the cash generating capacity of our operating businesses with low reliance on additional debt issuance," Frost added.

Non-GAAP Metrics

EBITDA excluding non-cash items from continuing operations decreased to $569.5 million in 2018 from $618.5 million in 2017 reflecting primarily:

The above items were partially offset by an increased contribution from Atlantic Aviation and the absence of costs incurred during 2017 related to the implementation of a shared services center.

Adjusted EBITDA excluding non-cash items from continuing operations totaled $601.9 million in 2018 compared with $636.3 million in 2017. Adjustments exclude items such as transaction related costs and the write-down of an investment in a business that was sold. Adjusted EBITDA excluding non-cash items, together with MIC's proportionate interest in the businesses reported in Discontinued Operations, totaled $688.6 million.

MIC reported Adjusted Free Cash Flow from continuing operations of $439.5 million, down 13.9% from $510.3 million in 2017, on higher interest expense, higher maintenance capital expenditures and higher taxes. Adjusted Free Cash Flow, including MIC's proportionate interest in the businesses reported in Discontinued Operations, totaled $498.5 million.

See Summary Financial Information below.

Dividend

The MIC Board of Directors authorized a cash dividend of $1.00 per share, or $4.00 annualized, for the fourth quarter of 2018. The dividend will be payable on March 7, 2019 to shareholders of record on March 4, 2019. The Company initiated guidance for a quarterly cash dividend of $1.00 per share in 2019.

Full Year 2018 Results and Strategic Initiatives

International-Matex Tank Terminals

IMTT generated EBITDA excluding non-cash items of $286.6 million in 2018, down 12.1% versus 2017, primarily as a result of a previously disclosed decline in capacity utilization and slightly lower average storage rates. Free Cash Flow produced by IMTT declined 23.2% to $200.5 million as a result of the reduction in earnings together with higher interest expense, taxes and maintenance capital expenditures including those related to repurposing storage capacity.

Bulk liquid storage capacity utilization was 82.0% in the fourth quarter of 2018 and averaged 84.6% in 2018, consistent with guidance for "mid 80s percent" utilization provided early in the year.

MIC announced that its IMTT subsidiary has entered into agreements for the development of new storage capacity and capabilities that will significantly enhance the operations of two of the business' terminals on the Lower Mississippi River. The agreements will see IMTT deploy approximately $75.0 million of growth capital over the upcoming 12 to 24-month period.

At its Avondale, LA terminal, IMTT will construct storage capacity and related infrastructure including a new ship dock in support of a palm oil processing facility being developed on land leased by IMTT to Fuji Vegetable Oil ("Fuji"). The project features 87,000 barrels of new capacity being built pursuant to a 30-year use agreement with Fuji and 100,000 barrels of existing capacity that is expected to be used by a feedstock supplier. The facility is expected to be in service in late 2020.

IMTT has leased 442,000 barrels of capacity, including 80,000 barrels of capacity to be constructed, at its terminal in Gretna, LA to a customer who will market highly refined oils through the terminal. As a part of the long-term agreement IMTT will also construct a truck loading facility in support of the customer. The project is expected to be in service in early 2020.

Both the Avondale and Gretna projects are a part of ongoing efforts to invest in the infrastructure of IMTT and are subject to customary pre-construction permitting.

Atlantic Aviation

Atlantic Aviation generated EBITDA excluding non-cash items of $264.7 million in 2018, an increase of 7.0% compared with 2017, driven by full-year contributions from acquisitions of fixed base operations in 2017, increased hangar rental income and ancillary services fees.

Free Cash Flow produced by Atlantic Aviation increased slightly with the higher earnings substantially offset by higher taxes and interest expense. Excluding airports at which traffic was restricted as a result of runway closures for portions of the year, flight activity at the airports on which Atlantic Aviation operates increased by 0.6% in 2018 based on data reported by the Federal Aviation Administration.

MIC Hawaii

MIC Hawaii generated EBITDA excluding non-cash items of $37.3 million in 2018, down 38.5% versus 2017, including $17.1 million of write-downs and approximately $5.5 million of negative EBITDA, both related to a mechanical contracting business that was sold in November. These were partially offset by increased utility margins at Hawaii Gas resulting from a rate increase implemented in July 2018.

Free Cash Flow produced by MIC Hawaii declined 42.3% to $22.4 million as a result of the losses generated by the mechanical contractor, and higher maintenance capital expenditures and interest expense, partially offset by a decrease in cash taxes.

Corporate and Other

MIC's Corporate and Other segment generated EBITDA excluding non-cash items of $(19.1) million in 2018, compared with $(15.5) million in 2017, primarily as a result of higher transaction expenses and professional fees related to addressing various shareholder matters, partially offset by the absence of costs associated with the implementation of a shared services center. Free Cash Flow produced by Corporate and Other declined 80.9% to $(20.5) million as a result of higher interest expense and a reduced tax benefit.

The Corporate and Other segment includes primarily fees payable to MIC's Manager, professional fees and expenses associated with being a public company and any revenue or expense associated with smaller businesses that individually or collectively do not constitute a reportable segment. MIC also reports transaction related expenses, any profit-share income to which MIC was entitled related to the sale of renewable power generation projects by a third-party developer and shared services costs not otherwise allocated to operating companies, in its Corporate and Other segment.

In December, MIC announced that it had completed the refinancing of the primary debt facility of Atlantic Aviation and extended the maturity dates of two of three facilities at IMTT. These actions extended the weighted average maturity of MIC's debt to 5.7 years and provided the capital to fund the repayment of $349.9 million of convertible notes due in July 2019. Following the repayment of the convertible notes, MIC does not currently have any debt facilities that mature prior to 2022.

Discontinued Operations

In October 2018 MIC completed the sale of the Bayonne Energy Center (BEC) and commenced a sale process involving its solar and wind power generation facilities. These businesses, all of which had been reported as components of MIC's Contracted Power segment, were classified as Discontinued Operations and the Contracted Power segment was eliminated. The Company's financial results for 2018 and the prior years have been restated to reflect the impact of these changes.

The Discontinued Operations generated net income of $29.6 million in 2018, an increase of 32.6% compared with 2017, and EBITDA excluding non-cash items of $98.9 million, up 5.9% versus 2017. The increases were driven by contributions from the expansion of BEC and improved wind resources. Free Cash Flow produced by the Discontinued Operations increased 3.8% to $67.9 million.

2019 Guidance

MIC initiated guidance with respect to EBITDA and Free Cash Flow from continuing operations, and EBITDA by segment, for 2019. The Company expects a modest contribution from its discontinued operations (solar and wind power generation) will be additive to its guidance through the anticipated date of sale of these assets in the second quarter.

With respect to the Company's guidance for EBITDA and Free Cash Flow in 2019, a reconciliation of EBITDA to net income (loss), the most comparable GAAP measure and a reconciliation of Free Cash Flow to cash from operating activities, the most comparable GAAP measure, are not available without unreasonable effort due to the Company's limited visibility into and inability to make accurate projections and estimates of items including management fees, hedging agreements, depreciation and any (benefit) provision for income taxes. These items may vary greatly from year to year and could significantly impact MIC's results as reported in accordance with GAAP.

International-Matex Tank Terminals

Storage utilization at IMTT is expected to average in a mid-80s percent range in 2019 and to end the year in a high-80s percent range, subject to market conditions. The Company expects the improvement to be more pronounced in the second half of the year. The 2019 utilization rate estimates assume that only a portion of the storage related to a now idle refinery (owned by a third party) is leased during 2019 and that demand for bulk liquid storage increases as market participants prepare for the scheduled implementation of new rules instituted by the International Maritime Organization concerning reductions in the sulphur content of bunker fuel in January of 2020. The contribution to EBITDA associated with the recovery in utilization is expected to be partially offset by a further decline in average storage rates and higher operating costs.

In the first quarter of 2019, IMTT is expected to receive approximately $39.0 million in proceeds related to the termination of an agreement with the owner of a refinery at IMTT's terminal in St. Rose, LA. The proceeds have been incorporated into the Company's guidance for IMTT EBITDA in 2019 of between $287.0 and $297.0 million. Excluding the termination fee, EBITDA is therefore be expected to be between $248.0 and $258.0 million. The forecast decline of approximately 12% reflects primarily the loss of revenue associated with storage related to the refinery, increased expenses and lower storage rates, primarily related to the renewal of older, out of market contracts, all partially offset by improved utilization including of repurposed capacity.

Atlantic Aviation

MIC's guidance for EBITDA from Atlantic Aviation of between $275.0 and $285.0 million in 2019 assumes historically normal growth in general aviation flight activity of approximately 2.5%. The guidance does not contemplate acquisitions of additional FBOs.

MIC Hawaii

Guidance for the Company's MIC Hawaii segment for EBITDA of between $60.0 and $65.0 million in 2019 assumes a full year benefit of the rate increase implemented in the regulated portion of Hawaii Gas in July of 2018, and the absence of write-downs and losses attributable to a business that was sold in 2018, partially offset by increases in the cost of propane hedges in the unregulated portion of that business.

Growth Investments

Growth capital expenditures across the MIC portfolio are expected to total between $275.0 and $300.0 million in 2019. Of this, the Company reports having already committed to expenditures with an aggregate value of $247.0 million. Given the attractiveness of the opportunities at IMTT and the tax benefits associated with investment in high-value, physical asset backed projects, the Company estimates that the majority of its 2019 growth capital expenditures will be made in support of IMTT.

Maintenance Capital Expenditures

MIC expects the amount of capital deployed in maintaining its businesses will be between $65.0 and $70.0 million in 2019. The expected spend is higher than the long-term average for the Company primarily as a result of planned expenditures related to the refurbishment of a pier at IMTT in Bayonne, NJ. Maintenance capital expenditures are expected to remain elevated for two to three years depending of the pace of the refurbishment.

EBITDA Guidance by Segment Summarized

IMTT:


$

287.0 ? $297.0 million

Atlantic Aviation:


$

275.0 ? $285.0 million

MIC Hawaii:


$

60.0 ? $65.0 million

Corporate/Other:


$

(12.0) million

Total


$

610.0 ? $635.0 million

Free Cash Flow

MIC expects Free Cash Flow from continuing operations in 2019 to be in a range between $400.0 and $445.0 million. The guidance contemplates higher cash interest related to an increase in the interest rate on debt at Atlantic Aviation, partially offset by the anticipated repayment of $349.9 million of holding company convertible notes in July of 2019 using a portion of the proceeds raised in the Atlantic Aviation refinancing. Free Cash Flow is also expected to be reduced by higher maintenance capital expenditures in 2019 compared with 2018 primarily in relation to increased spending at IMTT associated with the refurbishment of a pier at its facility in Bayonne, NJ.

Summary Financial Information




















Quarter Ended
December 31,


Change
Favorable/
(Unfavorable)


Year Ended
December 31,


Change
Favorable/
(Unfavorable)



2018


2017


$


%


2018


2017


$


%



($ In Thousands, Except Share and Per Share Data) (Unaudited)





GAAP Metrics

































Continuing Operations

































Net (loss) income (100%)


$

(3,848)



$

354,312




(358,160)




(101.1)



$

64,628



$

433,770




(369,142)




(85.1)


Net (loss) income per share 
     attributable to MIC



(0.01)




4.19




(4.20)




(100.2)




0.80




5.22




(4.42)




(84.7)


Cash provided by operating
     activities



107,437




112,037




(4,600)




(4.1)




473,160




464,106




9,054




2.0


Discontinued Operations

































Net (loss) income (100%)


$

(6,354)



$

6,964




(13,318)




(191.2)



$

29,620



$

22,342




7,278




32.6


Net (loss) income per share
     attributable to MIC



?




(0.06)




0.06




100.0




0.80




0.20




0.60




NM


Cash (used in) provided by
     operating activities



(1,062)




18,637




(19,699)




(105.7)




46,268




64,928




(18,660)




(28.7)


Weighted average number of shares 
     outstanding: basic



85,643,587




84,572,725




1,070,862




1.3




85,233,989




83,204,404




2,029,585




2.4


MIC Non-GAAP Metrics

































EBITDA excluding non-cash 
     items ? continuing
     operations (100%)


$

144,487



$

156,579




(12,092)




(7.7)



$

569,455



$

618,528




(49,073)




(7.9)


Shared service implementation 
     costs(1)



?




1,655




(1,655)




(100.0)




?




8,502




(8,502)




(100.0)


Write-down in Investment(1)



?




?




?




?




17,083




?




17,083




NM


Investment and
     acquisition/disposition costs(1)



7,891




1,381




6,510




NM




15,364




9,254




6,110




66.0


Adjusted EBITDA excluding
     non-cash items ? continuing 
     operations (100%)(1)


$

152,378



$

159,615




(7,237)




(4.5)



$

601,902



$

636,284




(34,382)




(5.4)


Cash interest


$

(23,908)



$

(21,410)




(2,498)




(11.7)



$

(98,432)



$

(80,269)




(18,163)




(22.6)


Cash taxes



(3,445)




(2,532)




(913)




(36.1)




(13,950)




(11,031)




(2,919)




(26.5)


Maintenance capital expenditures



(17,695)




(11,636)




(6,059)




(52.1)




(49,979)




(34,676)




(15,303)




(44.1)


Adjusted Free Cash 
     Flow ?  continuing operations 
     (100%)(1)


$

107,330



$

124,037




(16,707)




(13.5)



$

439,541



$

510,308




(70,767)




(13.9)


EBITDA excluding non-cash 
     items ? discontinued operations 
     (100%)


$

14,190



$

21,401




(7,211)




(33.7)



$

98,872



$

93,375




5,497




5.9


Cash interest



(4,309)




(6,696)




2,387




35.6




(23,843)




(27,272)




3,429




12.6


Cash taxes



(6,501)




(135)




(6,366)




NM




(6,655)




(129)




(6,526)




NM


Maintenance capital
     expenditures



?




(504)




504




100.0




(440)




(526)




86




16.3


Free Cash Flow ?  discontinued
     operations (100%)


$

3,380



$

14,066




(10,686)




(76.0)



$

67,934



$

65,448




2,486




3.8


Noncontrolling interest(2)



(2,235)




(2,583)




348




13.5




(9,008)




(7,806)




(1,202)




(15.4)


Adjusted Free Cash Flows (total 
     PC%)(1)


$

108,475



$

135,520




(27,045)




(20.0)



$

498,467



$

567,950




(69,483)




(12.2)


_____________________

NM ? Not meaningful


(1) Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow excludes costs relating to certain investment and acquisition/disposition activities during 2018 and 2017. Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow excludes the write-down of our investment in the previously owned design-build mechanical contractor business for 2018 and excludes implementation costs relating to our shared services center for 2017.


(2) Noncontrolling interest adjustment represents the portion of Free Cash Flow not attributable to MIC's ownership interest substantially from discontinued operations.

 

Conference Call and Webcast

When: MIC has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, February 21, 2019 during which management will review and comment on the fourth quarter and full year 2018 results and 2019 guidance.

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.

Supplemental Materials: MIC will prepare materials in support of its conference call. The materials will be available for downloading from the Company's website prior to the call.

Replay: For interested individuals unable to participate in the live conference call, a replay will be available after 2:00 p.m. on February 21, 2019 through midnight on February 27, 2019, at +1(404) 537-3406 or +1(855) 859-2056, Passcode: 2276902. 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 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; and entities comprising an energy services, production and distribution segment, MIC Hawaii. 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 solar and wind facilities, substantially all of which are in discontinued operations.

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.

Because MIC has varied ownership interest in the businesses within its portfolio of solar and wind power generation facilities (in discontinued operations) but has an obligation to report their financial results on a consolidated basis, GAAP measures such as net income (loss) do not fully reflect its proportionate share of the cash generated by these businesses. The Company notes that the proportionately combined metrics used may be calculated in a different manner by other companies and may limit their usefulness as a comparative measure. Therefore, proportionately combined metrics should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of financial results reported under GAAP.

The Company's businesses can be characterized as owners of high-value, long-lived assets capable of generating substantial Free Cash Flow. MIC defines Free Cash Flow as cash from operating activities ? the most comparable GAAP measure ? which includes cash interest, tax payments and pension contributions, less maintenance capital expenditures, which includes principal repayments on capital lease obligations used to fund maintenance capital expenditures and excludes changes in working capital.

Management uses Free Cash Flow as a measure of its ability to provide investors with an attractive risk-adjusted return by sustaining and potentially increasing MIC's quarterly cash dividend and funding a portion of the Company's growth. GAAP metrics such as net income (loss) do not provide MIC management with the same level of visibility to into the performance and prospects of the business as a result of: (i) the capital intensive nature of MIC's businesses and the generation of non-cash depreciation and amortization; (ii) shares issued to the Company's external manager under the Management Services Agreement, (iii) the Company's ability to defer all or a portion of current federal income taxes; (iv) non-cash unrealized gains or losses on derivative instruments; (v) amortization of tolling liabilities; (vi) gains (losses) on disposal of assets, and (vii) pension expense. Pension expenses primarily consist of interest expense, expected return on plan assets and amortization of actuarial and performance gains and losses. Any cash contributions to pension plans are reflected as a reduction to Free Cash Flow and are not included in pension expense. Management believes that external consumers of its financial statements, including investors and research analysts, use Free Cash Flow both to assess the Company's performance and as an indicator of its success in generating an attractive risk-adjusted return.

In its Annual Report on Form 10-K, the Company has disclosed Free Cash Flow on a consolidated basis and for each of its operating segments and MIC Corporate. Management believes that both EBITDA excluding non-cash items and Free Cash Flow support a more complete and accurate understanding of the financial and operating performance of its businesses than would otherwise be achieved using GAAP results alone.

Free Cash Flow does not take into consideration required payments on indebtedness and other fixed obligations or other cash items that are excluded from MIC's definition of Free Cash Flow. Management notes that Free Cash Flow may be calculated differently by other companies thereby limiting its usefulness as a comparative measure. Free Cash Flow should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of its financial results reported under GAAP.

See tables above and below for a reconciliation of net income from continuing operations to EBITDA excluding non-cash items from continuing operations and to Adjusted EBITDA excluding non-cash items from continuing operations and a reconciliation from cash provided by operating activities from continuing operations to Free Cash Flow from continuing operations and Adjusted Free Cash Flow from continuing operations, on a consolidated basis. Reconciliations for each of MIC's operating businesses and Corporate and Other follow.

Classification of Maintenance Capital Expenditures and Growth Capital Expenditures

MIC categorizes capital expenditures as either maintenance capital expenditures or growth capital expenditures. As neither maintenance capital expenditure nor growth capital expenditure is a GAAP term, the Company has adopted a framework to categorize specific capital expenditures. In broad terms, maintenance capital expenditures primarily maintain MIC's businesses at current levels of operations, capability, profitability or cash flow, while growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flow. Management considers a number of factors in determining whether a specific capital expenditure will be classified as maintenance or growth.

In some cases, specific capital expenditures contain characteristics of both maintenance and growth capital expenditures. MIC does not bifurcate specific capital expenditures into growth and maintenance components. Each discrete capital expenditure is considered within the above framework and the entire capital expenditure is classified as either maintenance or growth.

Forward-Looking Statements

This press release contains forward-looking statements. MIC may, in some cases, use words such as "project", "believe", "anticipate", "plan", "expect", "estimate", "intend", "should", "would", "could", "potentially", or "may" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC's control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, complete growth projects, deploy growth capital and manage growth, make and finance future acquisitions, and implement its strategy; the regulatory environment; demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks; fuel and gas and other commodity costs; its ability to recover increases in costs from customers, cybersecurity risks, work interruptions or other labor stoppages; risks associated with acquisitions or dispositions, litigation risks; risks related to its shared services initiative and its ability to achieve cost savings; reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.

MIC's actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.

MACQUARIE INFRASTRUCTURE CORPORATION










CONSOLIDATED BALANCE SHEETS

 ($ in Thousands, Except Share Data)












As of December 31,




2018


2017









ASSETS








Current assets:








Cash and cash equivalents


$

588,555


$

45,844


Restricted cash



23,316



10,295


Accounts receivable, less allowance for doubtful accounts








of $1,097 and $895, respectively



95,161



146,621


Inventories



29,256



33,060


Prepaid expenses



12,647



10,885


Fair value of derivative instruments



10,516



11,965


Other current assets



13,200



12,061


Current assets held for sale(1)



647,652



36,914


Total current assets



1,420,303



307,645


Property, equipment, land and leasehold improvements, net



3,141,407



3,197,407


Investment in unconsolidated business 



8,360



9,115


Goodwill



2,043,320



2,047,040


Intangible assets, net



788,761



851,751


Fair value of derivative instruments



14,536



22,011


Other noncurrent assets



27,094



23,034


Noncurrent assets held for sale(1)



-



1,550,948


Total assets


$

7,443,781


$

8,008,951










LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:








Due to Manager - related party


$

2,966


$

5,577


Accounts payable



38,178



58,883


Accrued expenses



85,867



79,576


Current portion of long-term debt



361,166



21,496


Other current liabilities



32,621



39,768


Current liabilities held for sale(1)



317,178



50,665


Total current liabilities



837,976



255,965


Long-term debt, net of current portion



2,652,748



2,991,654


Deferred income taxes



680,938



644,914


Other noncurrent liabilities



155,792



162,678


Noncurrent liabilities held for sale(1)



-



603,037


Total liabilities



4,327,454



4,658,248


Commitments and contingencies



-



-


Stockholders' equity (2):








Common stock ($0.001 par value; 500,000,000 authorized; 85,800,303 shares issued and
  outstanding at December 31, 2018 and 84,733,957 shares
issued and outstanding at 
   December 31, 2017)


$

86


$

85


Additional paid in capital



1,510,305



1,840,033


Accumulated other comprehensive loss



(30,271)



(29,993)


Retained earnings



1,484,482



1,343,567


Total stockholders' equity



2,964,602



3,153,692


Noncontrolling interests(3)



151,725



197,011


Total equity



3,116,327



3,350,703


Total liabilities and equity


$

7,443,781


$

8,008,951


_________________








(1)  See Note 5, ''Discontinued Operations and Dispositions'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for further discussion on assets and liabilities held for sale.


(2)  See Note 11, ''Stockholders' Equity'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for discussions on preferred stock and special stock.


(3)  Includes $141.5 million and $184.3 million of noncontrolling interest related to discontinued operations at December 31, 2018 and 2017, respectively. See Note 5, ''Discontinued Operations and Dispositions'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for further discussions.


 

 

MACQUARIE INFRASTRUCTURE CORPORATION












CONSOLIDATED STATEMENTS OF OPERATIONS

 ($ in Thousands, Except Share and Per Share Data)















Year Ended December 31,





2018



2017



2016

Revenue











Service revenue



$

1,515,149


$

1,445,832


$

1,288,562

Product revenue




246,384



222,955



213,470

Total revenue




1,761,533



1,668,787



1,502,032

Costs and expenses











Cost of services




712,082



624,214



524,423

Cost of product sales




178,822



143,787



119,440

Selling, general and administrative




328,464



306,664



277,628

Fees to Manager - related party




44,866



71,388



68,486

Goodwill impairment




3,215



-



-

Depreciation




193,659



178,292



175,518

Amortization of intangibles




68,314



63,825



60,997

Total operating expenses 




1,529,422



1,388,170



1,226,492

Operating income




232,111



280,617



275,540

Other income (expense)











Interest income




788



83



86

Interest expense(1)




(112,626)



(86,999)



(95,613)

Other (expense) income, net




(6,194)



10,566



17,765

Net income from continuing operations before income taxes



114,079



204,267



197,778

(Provision) benefit for income taxes



(49,451)



229,503



(69,313)

Net income from continuing operations


$

64,628


$

433,770


$

128,465












Discontinued Operations(2)











Net income from discontinued operations before income taxes


$

31,748


$

17,691


$

28,348

(Provision) benefit for income taxes



(2,128)



4,651



(1,944)

Net income from discontinued operations


$

29,620


$

22,342


$

26,404












Net income



$

94,248


$

456,112


$

154,869












Net income from continuing operations


$

64,628


$

433,770


$

128,465

Less: net loss attributable to noncontrolling interests



(3,452)



(409)



(3,608)

Net income from continuing operations attributable to MIC


$

68,080


$

434,179


$

132,073












Net income from discontinued operations


$

29,620


$

22,342


$

26,404

Less: net (loss) income attributable to noncontrolling interests



(38,821)



5,319



2,096

Net income from discontinued operations attributable to MIC


$

68,441


$

17,023


$

24,308












Net income attributable to MIC



$

136,521


$

451,202


$

156,381























Basic income per share from continuing operations attributable to MIC


$

0.80


$

5.22


$

1.63

Basic income per share from discontinued operations attributable to MIC



0.80



0.20



0.30

Basic income per share attributable to MIC


$

1.60


$

5.42


$

1.93

Weighted average number of shares outstanding: basic 



85,233,989



83,204,404



80,892,654












Diluted income per share from continuing operations attributable to MIC 


$

0.80


$

4.94


$

1.55

Diluted income per share from discontinued operations attributable to MIC 



0.80



0.19



0.30

Diluted income per share attributable to MIC


$

1.60


$

5.13


$

1.85

Weighted average number of shares outstanding: diluted



85,249,865



91,073,362



82,218,627

Cash dividends declared per share



$

4.00


$

5.56


$

5.05












(1)  Interest expense includes gains on derivative instruments of $7.6 million and $2.2 million and losses on derivative instruments of $2.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.

(2)  See Note 5, ''Discontinued Operations and Dispositions'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for discussions on businesses classified as held for sale.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION













CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in Thousands)















Year Ended December 31,




2018




2017(1)




2016(1)













Operating activities












Net income from continuing operations


$

64,628



$

433,770



$

128,465

Adjustments to reconcile net income to net cash provided by operating 
     activities from continuing operations:









Non-cash goodwill impairment



3,215




-




-

Depreciation and amortization of property and equipment



193,659




178,292




175,518

Amortization of intangible assets



68,314




63,825




60,997

Amortization of debt financing costs



11,353




7,184




19,552

Amortization of debt discount



3,627




3,266




1,007

Adjustments to derivative instruments



11,490




(3,709)




(49,787)

Fees to Manager- related party



44,866




71,388




68,486

Deferred taxes



35,501




(240,534)




62,009

Pension expense



8,306




8,106




8,601

Other non-cash expense, net(2)



22,697




5,640




5,677

Changes in other assets and liabilities, net of acquisitions/ dispositions:












Accounts receivable



14,057




(31,849)




(7,488)

Inventories



(1,568)




(5,895)




(2,363)

Prepaid expenses and other current assets



(2,216)




(5,495)




8,070

Due to Manager-related party



511




(130)




135

Accounts payable and accrued expenses



421




(7,170)




4,492

Income taxes payable



584




401




8,251

Pension contribution



-




-




(3,500)

Other, net



(6,285)




(12,984)




5

Net cash provided by operating activities from continuing operations



473,160




464,106




488,127













Investing activities












Acquisitions of businesses and investments, net of cash, cash
  equivalents and restricted cash acquired



(18,415)




(200,850)




(37,091)

Purchases of property and equipment



(177,156)




(214,224)




(257,198)

Proceeds from insurance claim



-




-




10,740

Loan to project developer



(19,400)




(23,341)




(5,000)

Loan repayment from project developer



17,131




17,079




-

Proceeds from sale of business, net of cash, cash equivalents and 
     restricted cash divested


41,212




-




-

Other, net



284




272




1,023

Net cash used in investing activities from continuing operations



(156,344)




(421,064)




(287,526)













Financing activities












Proceeds from long-term debt


$

1,407,000



$

931,001



$

1,311,000

Payment of long-term debt



(1,384,945)




(412,646)




(1,452,480)

Proceeds from the issuance of shares



125




6,060




12,623

Dividends paid to common stockholders



(378,355)




(452,949)




(396,093)

Contributions received from noncontrolling interests



956




458




15,431

Purchase of noncontrolling interest



-




-




(9,909)

Distributions paid to noncontrolling interests



-




(7)




-

Offering and equity raise costs paid



(243)




(466)




(1,601)

Debt financing costs paid



(33,914)




(708)




(17,285)

Proceeds from the issuance of convertible senior notes



-




-




402,500

Payment of capital lease obligations



-




(281)




(2,601)

Net cash (used in) provided by financing activities from continuing operations


(389,376)




70,462




(138,415)

Net change in cash, cash equivalents and restricted cash from continuing
     operations


(72,560)




113,504




62,186

























Cash flows provided by (used in) discontinued operations:












Net cash provided by operating activities



46,268




64,928




71,668

Net cash provided by (used in) investing activities



614,892




(135,757)




(85,733)

Net cash used in financing activities



(30,881)




(32,359)




(28,485)

Net cash provided by (used in) discontinued operations



630,279




(103,188)




(42,550)

























Effect of exchange rate changes on cash and cash equivalents



(1,059)




511




211













Net change in cash, cash equivalents and restricted cash



556,660




10,827




19,847

Cash, cash equivalents and restricted cash, beginning of period



72,084




61,257




41,410

Cash, cash equivalents and restricted cash, end of period


$

628,744



$

72,084



$

61,257













Supplemental disclosures of cash flow information from continuing operations:











Non-cash investing and financing activities:












Accrued financing costs


$

406



$

107



$

3

Accrued purchases of property and equipment



23,285




22,166




22,473

Issuance of shares to Manager  



47,988




72,274




135,345

Issuance of shares to independent directors



750




681




750

Issuance of shares for acquisition of business



-




125,000




-

Conversion of convertible senior notes to shares



8




20




4

Taxes paid (refund), net



12,386




10,640




(898)

Interest paid



98,215




85,128




84,112













_________________
























(1)  See Note 2, ''Summary of Significant Accounting Policies ?Recently Issued Accounting Standards'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for the Company's adoption of ASU No. 2016-18.

(2) Other non-cash expense, net, includes the write-down of the Company's investment in the previously owned design-build mechanical contractor business at MIC Hawaii for the year ended December 31, 2018.


The following table provides a reconciliation of cash, cash equivalents and restricted cash from both continuing and discontinued operations reported within the consolidated balance sheets that sum to the total of the same amounts presented in the consolidated statements of cash flows:



As of December 31,




2018




2017




2016













Cash and cash equivalents


$

588,555



$

45,844



$

42,727

Restricted cash - current



23,316




10,295




2,264

Cash, cash equivalents and restricted cash included in assets held for sale(3)



16,873




15,945




16,266

Total of cash, cash equivalents and restricted cash shown in the
 consolidated statement of cash flows


$

628,744



$

72,084



$

61,257













______________________












(3) Represents cash, cash equivalents and restricted cash related to businesses classified as held for sale. See Note 5, ''Discontinued Operations and Dispositions'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for the year ended December 31, 2018, for further discussion.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS ? MD&A




























Quarter Ended
December 31,


Change 
Favorable/
(Unfavorable)


Year Ended
 December 31,


Change 
Favorable/
(Unfavorable)





2018



2017



$


%



2018



2017



$


%




($ In Thousands, Except Share and Per Share Data) (Unaudited)

Revenue
























Service revenue


$

375,512


$

378,763



(3,251)


(0.9)


$

1,515,149


$

1,445,832



69,317


4.8


Product revenue



62,245



57,197



5,048


8.8



246,384



222,955



23,429


10.5


Total revenue



437,757



435,960



1,797


0.4



1,761,533



1,668,787



92,746


5.6


























Costs and expenses
























Cost of services



178,193



169,176



(9,017)


(5.3)



712,082



624,214



(87,868)


(14.1)


Cost of product sales



50,893



36,172



(14,721)


(40.7)



178,822



143,787



(35,035)


(24.4)


Selling, general and administrative



88,142



79,610



(8,532)


(10.7)



328,464



306,664



(21,800)


(7.1)


Fees to Manager - related party



8,753



16,778



8,025


47.8



44,866



71,388



26,522


37.2


Goodwill impairment



-



-



-


-



3,215



-



(3,215)


 NM 


Depreciation



49,971



47,250



(2,721)


(5.8)



193,659



178,292



(15,367)


(8.6)


Amortization of intangibles



15,236



16,225



989


6.1



68,314



63,825



(4,489)


(7.0)


Total operating expenses 



391,188



365,211



(25,977)


(7.1)



1,529,422



1,388,170



(141,252)


(10.2)


Operating income



46,569



70,749



(24,180)


(34.2)



232,111



280,617



(48,506)


(17.3)


Other income (expense)
























Interest income



671



24



647


 NM 



788



83



705


 NM 


Interest expense(1)



(41,781)



(17,371)



(24,410)


(140.5)



(112,626)



(86,999)



(25,627)


(29.5)


Other income (expense), net



8,840



3,427



5,413


158.0



(6,194)



10,566



(16,760)


(158.6)


Net income from continuing operations before 
     income taxes



14,299



56,829



(42,530)


(74.8)



114,079



204,267



(90,188)


(44.2)


(Provision) benefit for income taxes



(18,147)



297,483



(315,630)


(106.1)



(49,451)



229,503



(278,954)


(121.5)


Net (loss) income from continuing operations


$

(3,848)


$

354,312



(358,160)


(101.1)


$

64,628


$

433,770



(369,142)


(85.1)


























Discontinued Operations
























Net (loss) income from discontinued operations before 
     income taxes


$

(9,480)


$

5,009



(14,489)


 NM 


$

31,748


$

17,691



14,057


79.5


Benefit (provision) for income taxes



3,126



1,955



1,171


59.9



(2,128)



4,651



(6,779)


(145.8)


Net (loss) income from discontinued operations


$

(6,354)


$

6,964



(13,318)


(191.2)


$

29,620


$

22,342



7,278


32.6


























Net (loss) income


$

(10,202)


$

361,276



(371,478)


(102.8)


$

94,248


$

456,112



(361,864)


(79.3)


























Net (loss) income from continuing operations


$

(3,848)


$

354,312



(358,160)


(101.1)


$

64,628


$

433,770



(369,142)


(85.1)


Less: net loss attributable to noncontrolling interests



(3,135)



(338)



2,797


 NM 



(3,452)



(409)



3,043


 NM 


Net (loss) income from continuing operations 
     attributable to MIC


$

(713)


$

354,650



(355,363)


(100.2)


$

68,080


$

434,179



(366,099)


(84.3)


























Net (loss) income from discontinued operations


$

(6,354)


$

6,964



(13,318)


(191.2)


$

29,620


$

22,342



7,278


32.6


Less: net (loss) income attributable to noncontrolling interests



(6,684)



12,542



19,226


153.3



(38,821)



5,319



44,140


 NM 


Net income (loss) from discontinued operations 
     attributable to MIC


$

330


$

(5,578)



5,908


105.9


$

68,441


$

17,023



51,418


 NM 


























Net (loss) income attributable to MIC


$

(383)


$

349,072



(349,455)


(100.1)


$

136,521


$

451,202



(314,681)


(69.7)


























Basic (loss) income per share from continuing 
     operations attributable to MIC

$

(0.01)


$

4.19



(4.20)


(100.2)


$

0.80


$

5.22



(4.42)


(84.7)


Basic (loss) per share from discontinued 
     operations attributable to MIC


-



(0.06)



0.06


100.0



0.80



0.20



0.60


 NM 


Basic (loss) income per share attributable to MIC

$

(0.01)


$

4.13



(4.14)


(100.2)


$

1.60


$

5.42



(3.82)


(70.5)


Weighted average number of shares outstanding: basic 



85,643,587



84,572,725



1,070,862


1.3



85,233,989



83,204,404



2,029,585


2.4


________________________
























NM - Not meaningful
























(1) Interest expense includes losses on derivative instruments of $9.0 million and gains on derivative instruments of $7.6 million for the quarter and year ended December 31, 2018, respectively. For the quarter and year ended December 31, 2017, interest expense includes gains on derivative instruments of $6.8 million and $2.2 million, respectively.



MACQUARIE INFRASTRUCTURE CORPORATION

RECONCILIATION OF CONSOLIDATED NET (LOSS) INCOME TO EBITDA EXCLUDING

NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW




Quarter Ended
December 31,


Change 
Favorable/
(Unfavorable)


Year Ended
 December 31,



Change 
Favorable/
(Unfavorable)





2018



2017



$


%



2018



2017



$


%




($ In Thousands) (Unaudited)

























Net (loss) income from continuing operations


$

(3,848)


$

354,312







$

64,628


$

433,770







Interest expense, net(1)



41,110



17,347








111,838



86,916







Provision (benefit) for income taxes



18,147



(297,483)








49,451



(229,503)







Goodwill impairment



-



-








3,215



-







Depreciation



49,971



47,250








193,659



178,292







Amortization of intangibles



15,236



16,225








68,314



63,825







Fees to Manager- related party



8,753



16,778








44,866



71,388







Pension expense(2)



2,022



1,625








8,306



8,106







Other non-cash expense, net(3)



13,096



525








25,178



5,734







EBITDA excluding non-cash items - continuing operations


$

144,487


$

156,579



(12,092)


(7.7)


$

569,455


$

618,528



(49,073)


(7.9)


























EBITDA excluding non-cash items - continuing operations


$

144,487


$

156,579







$

569,455


$

618,528







Interest expense, net(1)



(41,110)



(17,347)








(111,838)



(86,916)







Adjustments to derivative instruments recorded in interest expense(1)



11,224



(6,809)








(1,574)



(3,803)







Amortization of debt financing costs(1)



5,061



1,857








11,353



7,184







Amortization of debt discount(1)



917



889








3,627



3,266







Provision for current income taxes



(3,445)



(2,532)








(13,950)



(11,031)







Changes in working capital(4)



(9,697)



(20,600)








16,087



(63,122)







Cash provided by operating activities - continuing operations



107,437



112,037








473,160



464,106







Changes in working capital(4)



9,697



20,600








(16,087)



63,122







Maintenance capital expenditures



(17,695)



(11,636)








(49,979)



(34,676)







Free cash flow - continuing operations  



99,439



121,001



(21,562)


(17.8)



407,094



492,552



(85,458)


(17.4)


Free cash flow - discontinued operations  



3,380



14,066



(10,686)


(76.0)



67,934



65,448



2,486


3.8


Total Free Cash Flow  


$

102,819


$

135,067



(32,248)


(23.9)


$

475,028


$

558,000



(82,972)


(14.9)


























__________________
























(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. Interest expense, net, also included a non-cash write-off of deferred financing fees related to the December 2018 refinancing at Atlantic Aviation.

(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 unrealized gains (losses) on commodity hedges, adjustments to asset retirement obligations and non-cash gains (losses) related to the disposal of assets. Other non-cash expense, net, also includes the write-down of our investment in the previously owned design-build mechanical contractor business for the year ended December 31, 2018. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics"above for further discussion.

(4)  Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, ''Summary of Significant Accounting Policies'', in our Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K, for the year ended December 31, 2018, for recently issued accounting standards.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION

RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO

PROPORTIONATELY COMBINED FREE CASH FLOW






















Change 
Favorable/
(Unfavorable)





Quarter Ended
December 31,



Change 
Favorable/
(Unfavorable)


Year Ended
December 31,







2018



2017



$


%



2018



2017



$


%





($ In Thousands) (Unaudited)


























100% Total Free Cash Flow 
     (includes continuing and 
     discontinued operations)

$

102,819


$

135,067



(32,248)


(23.9)


$

475,028


$

558,000



(82,972)


(14.9)



100% of Discontinued Operations 
     Free Cash Flow


(3,380)



(14,066)








(67,934)



(65,448)








Proportionately Combined 
     Discontinued Operations Free 
     Cash Flow


1,145



11,483








58,926



57,642








Proportionately Combined Free 
     Cash Flow (includes continuing 
     and discontinued operations)

$

100,584


$

132,484



(31,900)


(24.1)


$

466,020


$

550,194



(84,174)


(15.3)



 

 

MACQUARIE INFRASTRUCTURE CORPORATION

RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA

EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED

BY/(USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW

IMTT




Quarter Ended
December 31,


Change
Favorable/
(Unfavorable)



Year Ended
 December 31,


Change
Favorable/
(Unfavorable)




2018


2017




2018


2017





$


$


$


%



$


$


$


%




($ In Thousands) (Unaudited)


Revenue


123,802


139,294


(15,492)


(11.1)



510,783


549,422


(38,639)


(7.0)


Cost of services


52,961


48,317


(4,644)


(9.6)



200,966


196,369


(4,597)


(2.3)


Selling, general and administrative expenses


8,024


10,779


2,755


25.6



32,709


36,406


3,697


10.2


Depreciation and amortization


32,700


32,637


(63)


(0.2)



131,402


126,463


(4,939)


(3.9)


Operating income


30,117


47,561


(17,444)


(36.7)



145,706


190,184


(44,478)


(23.4)


Interest expense, net(1)


(15,153)


(7,650)


(7,503)


(98.1)



(45,502)


(38,357)


(7,145)


(18.6)


Other income (expense), net


101


(196)


297


151.5



965


1,758


(793)


(45.1)


(Provision) benefit for income taxes


(11,690)


256,150


(267,840)


(104.6)



(35,885)


209,464


(245,349)


(117.1)


Net income


3,375


295,865


(292,490)


(98.9)



65,284


363,049


(297,765)


(82.0)





















Reconciliation of net income to EBITDA
   excluding non-cash items and a reconciliation
   of cash provided by operating activities to Free
   Cash Flow:



















Net income


3,375


295,865







65,284


363,049






Interest expense, net(1)


15,153


7,650







45,502


38,357






Provision (benefit) for income taxes


11,690


(256,150)







35,885


(209,464)






Depreciation and amortization


32,700


32,637







131,402


126,463






Pension expense(2)


1,925


1,347







7,662


6,996






Other non-cash expense, net 


256


452







867


767






EBITDA excluding non-cash items


65,099


81,801


(16,702)


(20.4)



286,602


326,168


(39,566)


(12.1)





















EBITDA excluding non-cash items


65,099


81,801







286,602


326,168






Interest expense, net(1)


(15,153)


(7,650)







(45,502)


(38,357)






Adjustments to derivative instruments recorded
   in interest expense(1)


4,285


(3,577)







(1,978)


(3,834)






Amortization of debt financing costs(1)


487


411







1,721


1,647






Provision for current income taxes


(803)


(1,348)







(6,862)


(4,417)






Changes in working capital


(5,389)


(20,382)







4,524


(32,795)






Cash provided by operating activities


48,526


49,255







238,505


248,412






Changes in working capital


5,389


20,382







(4,524)


32,795






Maintenance capital expenditures


(12,159)


(6,580)







(33,494)


(20,143)






Free cash flow


41,756


63,057


(21,301)


(33.8)



200,487


261,064


(60,577)


(23.2)


_____________________



















(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
December 31,


Change
Favorable/ (Unfavorable)



Year Ended
 December 31,


Change
Favorable/(Unfavorable)




2018


2017




2018


2017





$


$


$


%



$


$


$


%




($ In Thousands) (Unaudited)

Revenue


247,451


225,282


22,169


9.8



962,492


846,431


116,061


13.7


Cost of services (exclusive of depreciation and amortization shown separately below)


121,184


105,509


(15,675)


(14.9)



466,948


378,494


(88,454)


(23.4)


Gross margin


126,267


119,773


6,494


5.4



495,544


467,937


27,607


5.9


Selling, general and administrative expenses


58,178


58,693


515


0.9



231,980


222,205


(9,775)


(4.4)


Depreciation and amortization


27,930


26,296


(1,634)


(6.2)



105,950


100,190


(5,760)


(5.7)


Operating income


40,159


34,784


5,375


15.5



157,614


145,542


12,072


8.3


Interest expense, net(1)


(16,232)


(864)


(15,368)


 NM 



(25,833)


(14,512)


(11,321)


(78.0)


Other income (expense), net


379


(32)


411


 NM 



(140)


(151)


11


7.3


(Provision) benefit for income taxes


(6,453)


30,257


(36,710)


(121.3)



(35,222)


(6,509)


(28,713)


 NM 


Net income


17,853


64,145


(46,292)


(72.2)



96,419


124,370


(27,951)


(22.5)





















Reconciliation of net income to EBITDA
   excluding non-cash items and a reconciliation
   of cash provided by operating activities to Free
   Cash Flow:



















Net income


17,853


64,145







96,419


124,370






Interest expense, net(1)


16,232


864







25,833


14,512






Provision (benefit) for income taxes


6,453


(30,257)







35,222


6,509






Depreciation and amortization


27,930


26,296







105,950


100,190






Pension expense(2)


5


5







21


20






Other non-cash (income) expense, net 


(11)


390







1,221


1,642






EBITDA excluding non-cash items


68,462


61,443


7,019


11.4



264,666


247,243


17,423


7.0





















EBITDA excluding non-cash items


68,462


61,443







264,666


247,243






Interest expense, net(1)


(16,232)


(864)







(25,833)


(14,512)






Convertible senior notes interest(3)


(1,449)


(2,013)







(7,487)


(7,782)






Adjustments to derivative instruments recorded
   in interest expense(1)


6,049


(2,721)







251


429






Amortization of debt financing costs(1)


3,454


351







4,296


1,170






Provision for current income taxes


(3,332)


(8,647)







(22,801)


(14,457)






Changes in working capital


(3,196)


(573)







13,708


(7,240)






Cash provided by operating activities


53,756


46,976







226,800


204,851






Changes in working capital


3,196


573







(13,708)


7,240






Maintenance capital expenditures


(3,001)


(2,894)







(8,301)


(7,965)






Free cash flow


53,951


44,655


9,296


20.8



204,791


204,126


665


0.3


_____________________



















NM - Not meaningful



















(1)  Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. For the quarter and year ended December 31, 2018, interest expense also included non-cash write-off of deferred financing costs related to the December 2018 refinancing.

(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 to Atlantic Aviation related to the 2.00% Convertible Senior Notes due October 2023 through December 06, 2018, the date of Atlantic Aviation's refinancing. The proceeds from this note issuance in October 2016 were used principally to reduce the drawn balance on Atlantic Aviation's revolving credit facility.

 

 

MIC Hawaii








































Quarter Ended
December 31,


Change
Favorable/ (Unfavorable)



Year Ended
 December 31,


Change
Favorable/(Unfavorable)




2018


2017




2018


2017





$


$


$


%



$


$


$


%




($ In Thousands) (Unaudited)




















Product revenue


61,393


57,197


4,196


7.3



245,532


222,955


22,577


10.1


Service revenue


4,951


15,437


(10,486)


(67.9)



46,257


54,913


(8,656)


(15.8)


Total revenue


66,344


72,634


(6,290)


(8.7)



291,789


277,868


13,921


5.0


Cost of product sales (exclusive of depreciation
   and amortization shown separately below)


50,633


36,172


(14,461)


(40.0)



178,562


143,787


(34,775)


(24.2)


Cost of services (exclusive of depreciation and
   amortization shown separately below)


4,048


15,350


11,302


73.6



44,168


49,365


5,197


10.5


Cost of revenue ? total


54,681


51,522


(3,159)


(6.1)



222,730


193,152


(29,578)


(15.3)


Gross margin


11,663


21,112


(9,449)


(44.8)



69,059


84,716


(15,657)


(18.5)


Selling, general and administrative expenses


6,454


7,209


755


10.5



29,307


26,938


(2,369)


(8.8)


Goodwill impairment


-


-


-


-



3,215


-


(3,215)


 NM 


Depreciation and amortization


4,168


4,381


213


4.9



23,708


15,303


(8,405)


(54.9)


Operating income


1,041


9,522


(8,481)


(89.1)



12,829


42,475


(29,646)


(69.8)


Interest expense, net(1)


(2,738)


(1,246)


(1,492)


(119.7)



(7,984)


(7,041)


(943)


(13.4)


Other expense, net


(1,503)


(349)


(1,154)


 NM 



(24,739)


(731)


(24,008)


 NM 


Benefit (provision) for income taxes


2,419


1,485


934


62.9



6,769


(9,287)


16,056


172.9


Net (loss) income


(781)


9,412


(10,193)


(108.3)



(13,125)


25,416


(38,541)


(151.6)


Less: net loss attributable to noncontrolling
   interests


(3,067)


(77)


2,990


 NM 



(3,202)


(148)


3,054


 NM 


Net income (loss) attributable to MIC


2,286


9,489


(7,203)


(75.9)



(9,923)


25,564


(35,487)


(138.8)





















Reconciliation of net (loss) income to EBITDA
   excluding non-cash items and a reconciliation
   of cash provided by operating activities to Free
   Cash Flow:



















Net (loss) income


(781)


9,412







(13,125)


25,416






Interest expense, net(1)


2,738


1,246







7,984


7,041






(Benefit) provision for income taxes


(2,419)


(1,485)







(6,769)


9,287






Goodwill impairment


-


-







3,215


-






Depreciation and amortization


4,168


4,381







23,708


15,303






Pension expense(2)


55


273







438


1,090






Other non-cash expense (income), net(3)


12,262


(614)







21,810


2,494






EBITDA excluding non-cash items


16,023


13,213


2,810


21.3



37,261


60,631


(23,370)


(38.5)





















EBITDA excluding non-cash items


16,023


13,213







37,261


60,631






Interest expense, net(1)


(2,738)


(1,246)







(7,984)


(7,041)






Adjustments to derivative instruments recorded
   in interest expense(1)


890


(511)







153


(398)






Amortization of debt financing costs(1)


94


100







383


403






Benefit (provision) for current income taxes


3,988


(3,047)







727


(8,312)






Changes in working capital(4)


(3,265)


5,345







13,155


(7,748)






Cash provided by operating activities


14,992


13,854







43,695


37,535






Changes in working capital(4)


3,265


(5,345)







(13,155)


7,748






Maintenance capital expenditures


(2,535)


(2,162)







(8,184)


(6,568)






Free cash flow


15,722


6,347


9,375


147.7



22,356


38,715


(16,359)


(42.3)


_____________________



















NM - Not meaningful



















(1)  Interest expense, net, includes adjustments to derivative instruments related to interest rate swaps and non-cash amortization of deferred financing fees.

(2) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses.

(3) Other non-cash expense (income), net, primarily includes non-cash adjustments related to unrealized gains (losses) on commodity hedges and non-cash gains (losses) related to the disposal of assets. Other non-cash expense (income), net, also includes the write-down of our investment in the previously owned design-build mechanical contractor business for the year ended December 31, 2018. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion.

(4) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, ''Summary of Significant Accounting Policies'', in Notes to Consolidated Financial Statements in Part II, Item 8, of Form 10-K for recently issued accounting standards.

 

 

Corporate and Other








































Quarter Ended
December 31,


Change
Favorable/(Unfavorable)



Year Ended
 December 31,


Change
Favorable/(Unfavorable)




2018


2017




2018


2017





$


$


$


%



$


$


$


%




($ In Thousands) (Unaudited)




















Product revenue


852


-


852


 NM 



852


-


852


 NM 


Service revenue


42


-


42


 NM 



42


-


42


 NM 


Total revenue


894


-


894


 NM 



894


-


894


 NM 


Cost of product sales


260


-


260


 NM 



260


-


(260)


 NM 


Selling, general and administrative expenses


16,220


4,179


(12,041)


 NM 



38,893


26,035


(12,858)


(49.4)


Fees to Manager-related party


8,753


16,778


8,025


47.8



44,866


71,388


26,522


37.2


Depreciation and amortization


409


161


(248)


(154.0)



913


161


(752)


 NM 


Operating loss


(24,748)


(21,118)


(3,630)


(17.2)



(84,038)


(97,584)


13,546


13.9


Interest expense, net(1)


(6,987)


(7,587)


600


7.9



(32,519)


(27,006)


(5,513)


(20.4)


Other income, net


9,863


4,004


5,859


146.3



17,720


9,690


8,030


82.9


(Provision) benefit for income taxes


(2,423)


9,591


(12,014)


(125.3)



14,887


35,835


(20,948)


(58.5)


Net loss


(24,295)


(15,110)


(9,185)


(60.8)



(83,950)


(79,065)


(4,885)


(6.2)


Less: net loss attributable to noncontrolling
  interests


(68)


(261)


(193)


(73.9)



(250)


(261)


(11)


(4.2)


Net loss attributable to MIC


(24,227)


(14,849)


(9,378)


(63.2)



(83,700)


(78,804)


(4,896)


(6.2)








































Reconciliation of net loss to EBITDA excluding
   non-cash items and a reconciliation of cash
   (used in) provided by operating activities to
   Free Cash Flow:



















Net loss


(24,295)


(15,110)







(83,950)


(79,065)






Interest expense, net(1)


6,987


7,587







32,519


27,006






Provision (benefit) for income taxes


2,423


(9,591)







(14,887)


(35,835)






Depreciation and amortization


409


161







913


161






Fees to Manager-related party


8,753


16,778







44,866


71,388






Pension expense(2)


37


-







185


-






Other non-cash expense, net


589


297







1,280


831






EBITDA excluding non-cash items


(5,097)


122


(5,219)


 NM 



(19,074)


(15,514)


(3,560)


(22.9)





















EBITDA excluding non-cash items


(5,097)


122







(19,074)


(15,514)






Interest expense, net(1)


(6,987)


(7,587)







(32,519)


(27,006)






Convertible senior notes interest(3)


1,449


2,013







7,487


7,782






Amortization of debt financing costs(1)


1,026


995







4,953


3,964






Amortization of debt discount(1)


917


889







3,627


3,266






(Provision) benefit for current income taxes


(3,298)


10,510







14,986


16,155






Changes in working capital


2,153


(4,990)







(15,300)


(15,339)






Cash (used in) provided by operating activities


(9,837)


1,952







(35,840)


(26,692)






Changes in working capital


(2,153)


4,990







15,300


15,339






Free cash flow


(11,990)


6,942


(18,932)


 NM 



(20,540)


(11,353)


(9,187)


(80.9)


_____________________



















NM - Not meaningful



















(1)  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.

(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 to Atlantic Aviation, related to the 2.00% Convertible Senior Notes due October 2023 through December 6, 2018, the date of Atlantic Aviation's refinancing. The proceeds from this note issuance in October 2016 were used principally to reduce the drawn balance on Atlantic Aviation's revolving credit facility. Cash interest expense on this note issuance is included in Corporate and Other subsequent to December 6, 2018.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION







RECONCILIATION OF NET INCOME (LOSS) TO EBITDA EXCLUDING







NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY/(USED IN) OPERATING







ACTIVITIES TO FREE CASH FLOW ON A CONSOLIDATED,

PROPORTIONATELY COMBINED

AND TOTAL BASIS

























For the Quarter Ended December 31, 2018



IMTT 


 Atlantic Aviation 


MIC Hawaii


MIC Corporate 


Total Continuing Operations
100%


Discontinued Operations PC%(1)


Total
 PC%(1)


Discontinued Operations  100%


Total
100%



($ in Thousands) (Unaudited)

Net income (loss)


3,375


17,853


(781)


(24,295)


(3,848)


(5,927)


(9,775)


(6,354)


(10,202)

Interest expense, net(2)


15,153


16,232


2,738


6,987


41,110


5,072


46,182


6,433


47,543

Provision (benefit) for income taxes


11,690


6,453


(2,419)


2,423


18,147


(3,126)


15,021


(3,126)


15,021

Depreciation and amortization


32,700


27,930


4,168


409


65,207


(1,600)


63,607


445


65,652

Fees to Manager-related party


-


-


-


8,753


8,753


-


8,753


-


8,753

Pension expense(3)


1,925


5


55


37


2,022


-


2,022


-


2,022

Other non-cash expense (income), net(4)


256


(11)


12,262


589


13,096


16,792


29,888


16,792


29,888

EBITDA excluding non-cash items


65,099


68,462


16,023


(5,097)


144,487


11,211


155,698


14,190


158,677




















EBITDA excluding non-cash items


65,099


68,462


16,023


(5,097)


144,487


11,211


155,698


14,190


158,677

Interest expense, net(2)


(15,153)


(16,232)


(2,738)


(6,987)


(41,110)


(5,072)


(46,182)


(6,433)


(47,543)

Convertible senior notes interest(5)


-


(1,449)


-


1,449


-


-


-


-


-

Adjustments to derivative instruments 
     recorded in interest expense, net(2)


4,285


6,049


890


-


11,224


1,419


12,643


2,021


13,245

   Amortization of debt financing costs(2)


487


3,454


94


1,026


5,061


88


5,149


103


5,164

Amortization of debt discount(2)


-


-


-


917


917


-


917


-


917

(Provision) benefit for current income taxes


(803)


(3,332)


3,988


(3,298)


(3,445)


(6,501)


(9,946)


(6,501)


(9,946)

Changes in working capital 


(5,389)


(3,196)


(3,265)


2,153


(9,697)


(4,283)


(13,980)


(4,442)


(14,139)

Cash provided by (used in) operating activities


48,526


53,756


14,992


(9,837)


107,437


(3,138)


104,299


(1,062)


106,375

Changes in working capital 


5,389


3,196


3,265


(2,153)


9,697


4,283


13,980


4,442


14,139

Maintenance capital expenditures


(12,159)


(3,001)


(2,535)


-


(17,695)


-


(17,695)


-


(17,695)

Free Cash Flow


41,756


53,951


15,722


(11,990)


99,439


1,145


100,584


3,380


102,819

 

 



For the Quarter Ended December 31, 2017



IMTT


 Atlantic Aviation 


MIC Hawaii


MIC Corporate 


Total Continuing Operations 100% 



Discontinued Operations PC%  (1)


Total
 PC%(1)


Discontinued Operations  100%


Total 100%



($ in Thousands) (Unaudited)

Net income (loss)


295,865


64,145


9,412


(15,110)


354,312



5,755


360,067


6,964


361,276

Interest expense, net(2)


7,650


864


1,246


7,587


17,347



2,660


20,007


3,056


20,403

Benefit for income taxes


(256,150)


(30,257)


(1,485)


(9,591)


(297,483)



(1,955)


(299,438)


(1,955)


(299,438)

Depreciation and amortization


32,637


26,296


4,381


161


63,475



13,382


76,857


15,269


78,744

Fees to Manager-related party


-


-


-


16,778


16,778



-


16,778


-


16,778

Pension expense(3)


1,347


5


273


-


1,625



-


1,625


-


1,625

Other non-cash expense (income), net(4)


452


390


(614)


297


525



(1,934)


(1,409)


(1,933)


(1,408)

EBITDA excluding non-cash items


81,801


61,443


13,213


122


156,579



17,908


174,487


21,401


177,980





















EBITDA excluding non-cash items


81,801


61,443


13,213


122


156,579



17,908


174,487


21,401


177,980

Interest expense, net(2)


(7,650)


(864)


(1,246)


(7,587)


(17,347)



(2,660)


(20,007)


(3,056)


(20,403)

Convertible senior notes interest(5)


-


(2,013)


-


2,013


-



-


-


-


-

Adjustments to derivative instruments recorded in interest expense, net(2)


(3,577)


(2,721)


(511)


-


(6,809)



(3,615)


(10,424)


(4,019)


(10,828)

   Amortization of debt financing costs(2)


411


351


100


995


1,857



363


2,220


379


2,236

Amortization of debt discount(2)


-


-


-


889


889



-


889


-


889

(Provision) benefit for current income taxes


(1,348)


(8,647)


(3,047)


10,510


(2,532)



(136)


(2,668)


(135)


(2,667)

Changes in working capital


(20,382)


(573)


5,345


(4,990)


(20,600)



4,648


(15,952)


4,067


(16,533)

Cash provided by operating activities


49,255


46,976


13,854


1,952


112,037



16,508


128,545


18,637


130,674

Changes in working capital


20,382


573


(5,345)


4,990


20,600



(4,648)


15,952


(4,067)


16,533

Maintenance capital expenditures


(6,580)


(2,894)


(2,162)


-


(11,636)



(377)


(12,013)


(504)


(12,140)

Free Cash Flow


63,057


44,655


6,347


6,942


121,001



11,483


132,484


14,066


135,067

 

 















For the Year Ended December 31, 2018



IMTT


 Atlantic Aviation 


MIC Hawaii


MIC
 Corporate 


Total Continuing Operations
100%



Discontinued Operations PC%(1)


Total
 PC%(1)


Discontinued Operations  100%


Total
100%



($ in Thousands) (Unaudited)

Net income (loss) 


65,284


96,419


(13,125)


(83,950)


64,628



27,056


91,684


29,620


94,248

Interest expense, net(2)


45,502


25,833


7,984


32,519


111,838



14,691


126,529


17,094


128,932

Provision (benefit) for income taxes


35,885


35,222


(6,769)


(14,887)


49,451



2,128


51,579


2,128


51,579

Goodwill impairment


-


-


3,215


-


3,215



-


3,215


-


3,215

Depreciation and amortization


131,402


105,950


23,708


913


261,973



31,281


293,254


38,517


300,490

Fees to Manager-related party


-


-


-


44,866


44,866



-


44,866


-


44,866

Pension expense(3)


7,662


21


438


185


8,306



-


8,306


-


8,306

Other non-cash expense, net(4)


867


1,221


21,810


1,280


25,178



11,508


36,686


11,513


36,691

EBITDA excluding non-cash items


286,602


264,666


37,261


(19,074)


569,455



86,664


656,119


98,872


668,327





















EBITDA excluding non-cash items


286,602


264,666


37,261


(19,074)


569,455



86,664


656,119


98,872


668,327

Interest expense, net(2)


(45,502)


(25,833)


(7,984)


(32,519)


(111,838)



(14,691)


(126,529)


(17,094)


(128,932)

Convertible senior notes interest(5)


-


(7,487)


-


7,487


-



-


-


-


-

Adjustments to derivative instruments 
     recorded in interest expense, net(2)


(1,978)


251


153


-


(1,574)



(7,241)


(8,815)


(7,990)


(9,564)

   Amortization of debt financing costs(2)


1,721


4,296


383


4,953


11,353



1,179


12,532


1,241


12,594

Amortization of debt discount(2)


-


-


-


3,627


3,627



-


3,627


-


3,627

(Provision) benefit for current income taxes


(6,862)


(22,801)


727


14,986


(13,950)



(6,655)


(20,605)


(6,655)


(20,605)

Changes in working capital


4,524


13,708


13,155


(15,300)


16,087



(21,377)


(5,290)


(22,106)


(6,019)

Cash provided by (used in) operating activities


238,505


226,800


43,695


(35,840)


473,160



37,879


511,039


46,268


519,428

Changes in working capital


(4,524)


(13,708)


(13,155)


15,300


(16,087)



21,377


5,290


22,106


6,019

Maintenance capital expenditures


(33,494)


(8,301)


(8,184)


-


(49,979)



(330)


(50,309)


(440)


(50,419)

Free Cash Flow


200,487


204,791


22,356


(20,540)


407,094



58,926


466,020


67,934


475,028

 

 
























For the Year Ended December 31, 2017



IMTT


 Atlantic Aviation 


MIC
Hawaii(5)


MIC
 Corporate 


Total Continuing Operations 100%



Discontinued Operations PC%(1)


Total
 PC%(1)


Discontinued Operations  100%


Total 100%



($ in Thousands) (Unaudited)

Net income (loss)


363,049


124,370


25,416


(79,065)


433,770



21,392


455,162


22,342


456,112

Interest expense, net(2)


38,357


14,512


7,041


27,006


86,916



20,831


107,747


23,487


110,403

(Benefit) provision for income taxes


(209,464)


6,509


9,287


(35,835)


(229,503)



(4,651)


(234,154)


(4,651)


(234,154)

Depreciation and amortization


126,463


100,190


15,303


161


242,117



52,758


294,875


60,300


302,417

Fees to Manager-related party


-


-


-


71,388


71,388



-


71,388


-


71,388

Pension expense(3)


6,996


20


1,090


-


8,106



-


8,106


-


8,106

Other non-cash expense (income), net(4)


767


1,642


2,494


831


5,734



(8,082)


(2,348)


(8,103)


(2,369)

EBITDA excluding non-cash items


326,168


247,243


60,631


(15,514)


618,528



82,248


700,776


93,375


711,903





















EBITDA excluding non-cash items


326,168


247,243


60,631


(15,514)


618,528



82,248


700,776


93,375


711,903

Interest expense, net(2)


(38,357)


(14,512)


(7,041)


(27,006)


(86,916)



(20,831)


(107,747)


(23,487)


(110,403)

Convertible senior notes interest(5)


-


(7,782)


-


7,782


-



-


-


-


-

Adjustments to derivative instruments 
     recorded in interest expense, net(2)


(3,834)


429


(398)


-


(3,803)



(4,704)


(8,507)


(5,301)


(9,104)

   Amortization of debt financing costs(2)


1,647


1,170


403


3,964


7,184



1,457


8,641


1,516


8,700

   Amortization of debt discount(2)


-


-


-


3,266


3,266



-


3,266


-


3,266

(Provision) benefit for current income
     taxes


(4,417)


(14,457)


(8,312)


16,155


(11,031)



(129)


(11,160)


(129)


(11,160)

Changes in working capital


(32,795)


(7,240)


(7,748)


(15,339)


(63,122)



(762)


(63,884)


(1,046)


(64,168)

Cash provided by (used in) operating 
     activities


248,412


204,851


37,535


(26,692)


464,106



57,279


521,385


64,928


529,034

Changes in working capital


32,795


7,240


7,748


15,339


63,122



762


63,884


1,046


64,168

Maintenance capital expenditures


(20,143)


(7,965)


(6,568)


-


(34,676)



(399)


(35,075)


(526)


(35,202)

Free Cash Flow


261,064


204,126


38,715


(11,353)


492,552



57,642


550,194


65,448


558,000









































__________________




















(1) Represents MIC's proportionately combined interests in its portfolio of solar and wind power generation businesses classified as part of discontinued operations.







(2) 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. Interest expense, net, also included a non-cash write-off of deferred financing fees related to the December 2018 refinancing at Atlantic Aviation.







(3) Pension expense primarily consists of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses.







(4) Other non-cash expense (income), net, primarily includes non-cash amortization of tolling liabilities, unrealized gains (losses) on commodity hedges and non-cash gains (losses) related to the disposal of assets. Other non-cash expense (income), net, also includes the write-down of our investment in the previously owned design-build mechanical contractor business for the year ended December 31, 2018. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics"above for further discussion.







(5) Represents the cash interest expense reclassified to Atlantic Aviation, related to the 2.00% Convertible Senior Notes due October 2023 through December 6, 2018, the date of Atlantic Aviation's refinancing. The proceeds from this note issuance in October 2016 were used principally to reduce the drawn balance on Atlantic Aviation's revolving credit facility. Cash interest expense on this note issuance is included in Corporate and Other subsequent to December 6, 2018.







 

SOURCE Macquarie Infrastructure Corporation


These press releases may also interest you

at 10:15
A wave of solidarity is breaking out today on the streets of Trois-Rivières as thousands of demonstrators demand a negotiated resolution to the lockout of ABI smelter workers. Locked-out workers and their families have been joined in the city's...

at 06:00
Supporters from across Quebec and elsewhere in Canada and the United States will converge on Trois Rivières, Que., this Saturday, May 25, for a massive rally in solidarity with locked-out workers from the nearby ABI aluminum smelter....

24 mai 2019
Anconia Resources Corp. ("Anconia" or the "Company") and Avalon Investment Holdings Ltd. ("Avalon") are pleased to announce that they have entered into a binding letter agreement dated May 24, 2019 (the "LOI"), in respect of a proposed transaction...

24 mai 2019
The "Research Report on China's Rare Earth Industry, 2019-2023" report has been added to ResearchAndMarkets.com's offering. Rare earth elements and metals are widely used in the industry. Rare earth elements are essential to aircraft engines, mobile...

24 mai 2019
Barrian Mining Corp. ("Barrian" or the "Company") is pleased to announce that the recently completed induced-polarization (IP) and resistivity geophysical survey completed at the Bolo Gold Property ("Bolo") has identified multiple high-priority...

24 mai 2019
Sabina Gold & Silver Corp. ("Sabina") or (the "Company") (SBB ? TSX/ SGSVF - OTCQX) reports that it has filed an amended and restated Annual Information Form (the "AIF") to include the requisite Audit Committee disclosure which had inadvertently been...



News published on 20 february 2019 at 17:15 and distributed by: