MACQUARIE INFRASTRUCTURE HOLDINGS, LLC NEW YORK, May 3, 2017 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE: MIC) today reported its financial results for the first quarter of 2017.
"MIC generated financial results for the first quarter in line with our expectations including a strong performance by Atlantic Aviation that offset a reduced contribution from Contracted Power," said James Hooke, chief executive officer of MIC. "In addition to the solid increase in cash generation by our existing businesses collectively, we have deployed growth capital into attractive opportunities at a pace consistent with our full-year guidance."
MIC reported a 61.8% increase in net income to $32.6 million in the March 2017 quarter, compared with $20.2 million in the first quarter of 2016. The absence of a previously disclosed insurance recovery recorded in the first quarter of 2016 and the timing of payments of insurance premiums and higher cost of inventories in 2017 contributed to a decrease in cash from operations versus the prior comparable period. The Company reported cash generated by operating activities of $128.6 million compared with $148.6 million in 2016.
MIC's businesses produced an aggregate $146.9 million of Adjusted Free Cash Flow in the first quarter, up from $133.4 million in the first quarter of 2016. The Company defines Adjusted Free Cash Flow as cash from operating activities (including from its proportionate interest in businesses in which it has a less than 100% equity interest), less maintenance capital expenditures, less changes in working capital, adjusted for certain one-time items. In the first quarter of 2017, MIC excluded implementation costs related to its shared services initiative from its calculation of Adjusted Free Cash Flow. (See Summary Financial Information below)
The nominal increase in MIC's Adjusted Free Cash Flow of 10.1% was partially offset by a 2.5% increase in its weighted average number of shares outstanding to 82,138,168 in the first quarter of 2017 versus the first quarter in 2016. Including the impact of share issuance, MIC's Adjusted Free Cash Flow increased by 7.2% over the amount generated in the first quarter of 2016.
Segment results for the first quarter reflected:
-- IMTT -- high utilization rates and improved performance at OMI;
-- Atlantic Aviation -- increases in general aviation flight activity and
market share growth;
-- Contracted Power -- reduced wind resources, warm winter weather in the
Northeast; and,
-- MIC Hawaii -- stable performance by Hawaii Gas, together with
contributions from acquisitions in 2016.
The MIC board of directors authorized a cash dividend of $1.32 per share, or $5.28 annualized, for the first quarter of 2017. The dividend will be payable May 18, 2017 to shareholders of record on May 15, 2017. The payment represents a 10% increase over the dividend paid for the first quarter of 2016. For the full year 2017, the Company expects to increase its cash dividend by 10% over 2016.
Atlantic Aviation has completed the acquisition of the fixed base operation (FBO) at the Waterbury-Oxford airport in Waterbury, CT. "The acquisition of the FBO at Oxford provides Atlantic with an increased presence in the high-demand general aviation market in the greater New York City region," Hooke said. "Oxford extends the weighted average remaining lease life of the Atlantic portfolio and we expect it will generate network benefits as a result of marketing of the Atlantic network to Oxford base tenants."
In addition to serving general aviation traffic in and out of the surrounding region, Oxford is the hangar home-base FBO for many aircraft that service New York metropolitan airports, such as Teterboro and White Plains. The Oxford FBO has in excess of 200,000 square feet of hangar space -- more than three times the amount of the average Atlantic FBO.
The implementation of MIC's previously announced shared services initiative resulted in a reduction in the rate of increase in general and administrative expenses. As anticipated, the savings were offset by expenses including primarily severance payments and consulting fees totaling $2.4 million and incremental expenses associated with acquisitions completed in 2016. The Company expects to realize annual cost savings of between $12.0 million and $15.0 million in 2018, compared with its 2016 baseline, as a result of the shared services initiative. Shared services provides back-office functions including Accounting, Human Resource, Tax, Information Technology and Risk Management support to each of MIC's operating entities.
In February, MIC issued guidance with respect to deployment of an estimated $350.0 million across growth capital projects and small acquisitions by its existing businesses in 2017. Including the acquisition of the Oxford FBO, the Company has deployed approximately $117.0 million of growth capital year to date. MIC had a backlog of approved growth projects having a total value of approximately $280.0 million at the beginning of May.
"We are pleased with both the rate of capital deployment to this point and the number and quality of projects that have been added to our backlog," Hooke said. During MIC's earnings conference call in February, he noted that effective deployment of growth capital is an important driver of expected 10% to 15% annual growth in Free Cash Flow.
Summary Financial Information
Quarter Ended Change
March 31, Favorable/(Unfavorable)
--------- -----------------------
2017 2016 $ %
---- ---- --- ---
($ In Thousands, Except Share and Per Share Data) (Unaudited)
GAAP Metrics
Net income $32,638 $20,176 12,462 61.8
Weighted average number
of shares outstanding: 82,138,168 80,113,011 2,025,157 2.5
basic
Net income per share
attributable to MIC $0.44 $0.28 0.16 57.1
Cash provided by
operating activities 128,568 148,566 (19,998) (13.5)
MIC Non-GAAP Metrics
EBITDA excluding non-
cash items(1) $180,315 $175,975 4,340 2.5
Cash interest(2) (25,874) (27,378) 1,504 5.5
Cash taxes (3,721) (2,506) (1,215) (48.5)
Maintenance capital
expenditures (4,476) (10,413) 5,937 57.0
Noncontrolling
interest(3) (1,671) (2,283) 612 26.8
------ ------ ---
Proportionately Combined
Free Cash Flow(4) $144,573 $133,395 11,178 8.4
-------- -------- ------
Shared service
implementation costs 2,354 - 2,354 100.0
----- --- -----
Adjusted Proportionately
Combined Free Cash Flow $146,927 $133,395 13,532 10.1
======== ======== ======
(1) 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.
(2) Cash interest is calculated as
interest expense 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.
(3) Noncontrolling interest
adjustment represents the portion of
Free Cash Flow not attributable to
MIC's ownership interest.
(4) Proportionately Combined Free
Cash Flow is calculated as cash from
operating activities, which includes
EBITDA excluding non-cash items
less cash paid for interest, taxes,
pension contribution, maintenance
capital expenditures, which includes
principal repayment of capital lease
obligations used to fund maintenance
capital expenditures, excludes the
changes in working capital and
adjusted for noncontrolling
interest. See below for a
reconciliation from cash from
operating activities to Free Cash
Flow.
Outlook
MIC's businesses are providers of basic services. Absent external factors such as macroeconomic shocks, they tend to provide good visibility into their cash generating capacity. Company management is not aware of any near term matters that are likely to have a materially negative impact on the performance of MIC's businesses overall.
Effective deployment of capital in the development of additional capability or the acquisition of additional businesses remains one of MIC management's key objectives. In addition to the current backlog of approved growth projects, a portion of which will be completed as a part of the expected deployment of $350.0 million in 2017, MIC is actively engaged in discussions with various counterparties concerning additional investments and acquisitions. The Company has approximately $1.3 billion of undrawn capacity on existing credit facilities with which to fund investments and acquisitions.
"We are pleased with the number and size of the opportunities being generated by our team," said Hooke. "We have remained disciplined with respect to the evaluation and execution of new investments, and expect that we will only commit resources to what are clearly value-creating opportunities. Consistent with that, we have added to our backlog and continue to surface and review potentially transformational opportunities."
Conference Call and Webcast
When: MIC has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, May 4, 2017 during which management will review and comment on the first quarter 2017 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 4, 2017 through midnight on May 12, 2017, at +1(404) 537-3406 or +1(855) 859-2056, Passcode: 48638082. 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 Corporate and the Company's ownership interest in each of its businesses.
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 CP 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 expenses. 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. 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 below for a reconciliation of EBITDA excluding non-cash items to net income (loss) and a reconciliation of Free Cash Flow to cash from operating activities on a consolidated basis, for our operating businesses, MIC Corporate and on a proportionately combined basis.
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 maintenance and growth 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
CONSOLIDATED CONDENSED BALANCE SHEETS
($ in Thousands, Except Share Data)
March 31, December 31,
2017 2016
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $29,618 $44,767
Restricted cash 15,169 16,420
Accounts receivable, less allowance
for doubtful accounts of $1,238 and 123,849 124,846
$1,434, respectively
Inventories 35,063 31,461
Prepaid expenses 19,328 14,561
Fair value of derivative instruments 4,515 5,514
Other current assets 9,794 7,099
----- -----
Total current assets 237,336 244,668
Property, equipment, land and
leasehold improvements, net 4,346,597 4,346,536
Investment in unconsolidated business 8,944 8,835
Goodwill 2,024,484 2,024,409
Intangible assets, net 871,278 888,971
Fair value of derivative instruments 25,850 30,781
Other noncurrent assets 24,073 15,053
------ ------
Total assets $7,538,562 $7,559,253
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Due to Manager - related party $6,366 $6,594
Accounts payable 62,820 69,566
Accrued expenses 76,260 83,734
Current portion of long-term debt 42,782 40,016
Fair value of derivative instruments 5,902 9,297
Other current liabilities 42,977 41,802
------ ------
Total current liabilities 237,107 251,009
Long-term debt, net of current
portion 3,070,883 3,039,966
Deferred income taxes 914,461 896,116
Fair value of derivative instruments 5,403 5,966
Tolling agreements - noncurrent 58,428 60,373
Other noncurrent liabilities 160,787 158,289
------- -------
Total liabilities 4,447,069 4,411,719
--------- ---------
Commitments and contingencies - -
Stockholders' equity(1):
Common stock ($0.001 par value;
500,000,000 authorized; 82,306,372
shares issued and outstanding at
March 31, 2017 and 82,047,526 shares
issued and outstanding at December
31, 2016) $82 $82
Additional paid in capital 2,002,066 2,089,407
Accumulated other comprehensive loss (28,960) (28,960)
Retained earnings 928,380 892,365
------- -------
Total stockholders' equity 2,901,568 2,952,894
Noncontrolling interests 189,925 194,640
------- -------
Total equity 3,091,493 3,147,534
--------- ---------
Total liabilities and equity $7,538,562 $7,559,253
========== ==========
(1) The Company is authorized to
issue 100,000,000 shares of
preferred stock, par value
$0.001 per share. At March 31,
2017 and December 31, 2016, no
preferred stock were issued or
outstanding. The Company has
100 shares of special stock
issued and outstanding to its
Manager at March 31, 2017 and
December 31, 2016.
MACQUARIE INFRASTRUCTURE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($ in Thousands, Except Share and Per Share Data)
Quarter Ended
March 31,
---------
2017 2016
---- ----
Revenue
Service revenue $363,804 $312,241
Product revenue 87,653 84,146
------ ------
Total revenue 451,457 396,387
------- -------
Costs and expenses
Cost of services 154,706 116,463
Cost of product sales 47,225 33,060
Selling, general and
administrative 76,952 72,284
Fees to Manager - related
party 18,223 14,796
Depreciation 57,681 53,221
Amortization of intangibles 17,693 17,787
------ ------
Total operating expenses 372,480 307,611
------- -------
Operating income 78,977 88,776
Other income (expense)
Interest income 34 33
Interest expense(1) (25,482) (56,895)
Other income, net 1,182 3,429
----- -----
Net income before income
taxes 54,711 35,343
Provision for income taxes (22,073) (15,167)
------- -------
Net income $32,638 $20,176
Less: net loss attributable
to noncontrolling interests (3,377) (2,179)
------ ------
Net income attributable to
MIC $36,015 $22,355
======= =======
Basic income per share
attributable to MIC $0.44 $0.28
----- -----
Weighted average number of
shares outstanding: basic 82,138,168 80,113,011
========== ==========
Diluted income per share
attributable to MIC $0.44 $0.28
----- -----
Weighted average number of
shares outstanding: diluted 82,147,763 81,171,346
========== ==========
Cash dividends declared per
share $1.32 $1.20
----- -----
(1) Interest expense includes
gains on derivative instruments
of $954,000 and losses on
derivative instruments of $31.8
million for the quarters ended
March 31, 2017 and 2016,
respectively.
MACQUARIE INFRASTRUCTURE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ in Thousands)
Quarter Ended
March 31,
---------
2017 2016
---- ----
Operating activities
Net income $32,638 $20,176
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
property and equipment 57,681 53,221
Amortization of intangible assets 17,693 17,787
Amortization of debt financing
costs 2,202 2,879
Amortization of debt discount 619 -
Adjustments to derivative
instruments 1,972 23,278
Fees to Manager-related party 18,223 14,796
Deferred taxes 18,352 12,661
Pension expense 2,694 2,198
Other non-cash income, net (1,354) (905)
Changes in other assets and
liabilities, net of acquisitions:
Restricted cash 974 2,202
Accounts receivable 1,059 3,910
Inventories (3,718) 1,879
Prepaid expenses and other current
assets (7,559) 9,352
Due to Manager - related party 11 (73)
Accounts payable and accrued
expenses (12,382) (13,293)
Income taxes payable 1,341 2,753
Other, net (1,878) (4,255)
------ ------
Net cash provided by operating
activities 128,568 148,566
------- -------
Investing activities
Acquisitions of businesses and
investments, net of cash acquired - (3,153)
Purchases of property and equipment (59,869) (62,593)
Change in restricted cash 83 -
Other, net (7,950) 48
------ ---
Net cash used in investing
activities (67,736) (65,698)
------- -------
MACQUARIE INFRASTRUCTURE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - (continued)
(Unaudited)
($ in Thousands)
Quarter Ended
March 31,
---------
2017 2016
---- ----
Financing activities
Proceeds from long-term debt $104,000 $176,000
Payment of long-term debt (72,634) (159,730)
Proceeds from the issuance of shares 2,049 1,093
Dividends paid to common
stockholders (107,714) (92,203)
Purchase of noncontrolling interest - (9,909)
Distributions paid to noncontrolling
interests (1,351) (1,824)
Offering and equity raise costs paid (69) (105)
Debt financing costs paid (435) (1,119)
Change in restricted cash 194 5,013
Payment of capital lease obligations (21) (433)
--- ----
Net cash used in financing
activities (75,981) (83,217)
------- -------
Effect of exchange rate changes on
cash and cash equivalents - 457
Net change in cash and cash
equivalents (15,149) 108
------- ---
Cash and cash equivalents, beginning
of period 44,767 22,394
------ ------
Cash and cash equivalents, end of
period $29,618 $22,502
======= =======
Supplemental disclosures of cash
flow information
Non-cash investing and financing
activities:
Accrued equity offering costs $93 $229
=== ====
Accrued financing costs $ - $68
=== === ===
Accrued purchases of property and
equipment $25,598 $19,318
======= =======
Issuance of shares to Manager $18,462 $15,108
======= =======
Conversion of convertible senior
notes to shares $17 $4
=== ===
Distributions payable to
noncontrolling interests $29 $42
=== ===
Taxes paid (refund), net $2,379 $(253)
====== =====
Interest paid $26,764 $25,488
======= =======
MACQUARIE INFRASTRUCTURE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - MD&A
Quarter Ended March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016 $ %
---- ---- --- ---
($ In Thousands, Except Share and Per Share Data) (Unaudited)
Revenue
Service revenue $363,804 $312,241 51,563 16.5
Product revenue 87,653 84,146 3,507 4.2
------ ------ -----
Total revenue 451,457 396,387 55,070 13.9
------- ------- ------
Costs and expenses
Cost of services 154,706 116,463 (38,243) (32.8)
Cost of product sales 47,225 33,060 (14,165) (42.8)
Selling, general and
administrative 76,952 72,284 (4,668) (6.5)
Fees to Manager -
related party 18,223 14,796 (3,427) (23.2)
Depreciation 57,681 53,221 (4,460) (8.4)
Amortization of
intangibles 17,693 17,787 94 0.5
------ ------ ---
Total operating
expenses 372,480 307,611 (64,869) (21.1)
------- ------- -------
Operating income 78,977 88,776 (9,799) (11.0)
Other income
(expense)
Interest income 34 33 1 3.0
Interest expense(1) (25,482) (56,895) 31,413 55.2
Other income, net 1,182 3,429 (2,247) (65.5)
----- ----- ------
Net income before
income taxes 54,711 35,343 19,368 54.8
Provision for income
taxes (22,073) (15,167) (6,906) (45.5)
------- ------- ------
Net income $32,638 $20,176 12,462 61.8
Less: net loss
attributable to
noncontrolling
interests (3,377) (2,179) 1,198 55.0
------ ------ -----
Net income
attributable to MIC $36,015 $22,355 13,660 61.1
======= ======= ======
Basic income per
share attributable
to MIC $0.44 $0.28 0.16 57.1
----- ----- ----
Weighted average
number of shares
outstanding: basic 82,138,168 80,113,011 2,025,157 2.5
========== ========== =========
(1) Interest expense includes
gains on derivative instruments
of $954,000 and losses on
derivative instruments of $31.8
million for the quarters ended
March 31, 2017 and 2016,
respectively.
MACQUARIE INFRASTRUCTURE CORPORATION
RECONCILIATION OF CONSOLIDATED NET INCOME TO EBITDA EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Quarter Ended March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016 $ %
---- ---- --- ---
($ In Thousands) (Unaudited)
Net income $32,638 $20,176
Interest expense, net(1) 25,448 56,862
Provision for income
taxes 22,073 15,167
Depreciation 57,681 53,221
Amortization of
intangibles 17,693 17,787
Fees to Manager-related
party 18,223 14,796
Pension expense(2) 2,694 2,198
Other non-cash expense
(income), net(3) 3,865 (4,232)
----- ------
EBITDA excluding non-
cash items $180,315 $175,975 4,340 2.5
======== ======== =====
EBITDA excluding non-
cash items $180,315 $175,975
Interest expense, net(1) (25,448) (56,862)
Adjustments to
derivative instruments
recorded in interest
expense(1) (3,247) 26,605
Amortization of debt
financing costs(1) 2,202 2,879
Amortization of debt
discount(1) 619 -
Provision for income
taxes, net of changes
in deferred taxes (3,721) (2,506)
Changes in working
capital (22,152) 2,475
------- -----
Cash provided by
operating activities 128,568 148,566
Changes in working
capital 22,152 (2,475)
Maintenance capital
expenditures (4,476) (10,413)
------ -------
Free cash flow $146,244 $135,678 10,566 7.8
======== ======== ======
(1) Interest expense, net,
includes adjustment 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. For the quarter
ended March 31, 2016, interest
expense also included a non-
cash write-off of deferred
financing fees related to the
February 2016 refinancing at
Hawaii Gas.
(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
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.
MACQUARIE INFRASTRUCTURE CORPORATION
RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO PROPORTIONATELY
COMBINED FREE CASH FLOW
Quarter Ended March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016 $ %
---- ---- --- ---
($ In Thousands) (Unaudited)
Free Cash Flow -
Consolidated basis $146,244 $135,678 10,566 7.8
100% of CP Free Cash Flow
included in consolidated
Free Cash Flow (9,839) (11,943)
MIC's share of CP Free
Cash Flow 8,171 9,660
100% of MIC Hawaii Free
Cash Flow included in
consolidated Free Cash
Flow (14,936) (10,862)
MIC's share of MIC Hawaii
Free Cash Flow 14,933 10,862
------ ------
Free Cash Flow -
Proportionately Combined
basis $144,573 $133,395 11,178 8.4
======== ======== ======
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 March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016
---- ----
$ $ $ %
--- --- --- ---
($ In Thousands) (Unaudited)
Revenue 138,817 135,425 3,392 2.5
Cost of services 49,846 50,301 455 0.9
Selling, general and administrative
expenses 9,038 8,174 (864) (10.6)
Depreciation and amortization 31,520 32,621 1,101 3.4
------ ------ -----
Operating income 48,413 44,329 4,084 9.2
Interest expense, net(1) (8,757) (19,871) 11,114 55.9
Other income, net 708 2,988 (2,280) (76.3)
Provision for income taxes (16,548) (11,229) (5,319) (47.4)
------- ------- ------
Net income(2) 23,816 16,217 7,599 46.9
Less: net income attributable to
noncontrolling - 59 59 100.0
interests
Net income attributable to MIC(2) 23,816 16,158 7,658 47.4
====== ====== =====
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(2) 23,816 16,217
Interest expense, net(1) 8,757 19,871
Provision for income taxes 16,548 11,229
Depreciation and amortization 31,520 32,621
Pension expense(3) 2,416 1,831
Other non-cash expense, net 68 443
--- ---
EBITDA excluding non-cash items 83,125 82,212 913 1.1
====== ====== ===
EBITDA excluding non-cash items 83,125 82,212
Interest expense, net(1) (8,757) (19,871)
Adjustments to derivative
instruments recorded in interest
expense(1) (1,320) 9,610
Amortization of debt financing
costs(1) 411 420
Provision for income taxes, net of
changes in deferred taxes (2,258) (1,230)
Changes in working capital 736 (2,807)
--- ------
Cash provided by operating
activities 71,937 68,334
Changes in working capital (736) 2,807
Maintenance capital expenditures (2,460) (6,297)
------ ------
Free cash flow 68,741 64,844 3,897 6.0
====== ====== =====
(1) Interest expense, net,
includes adjustments to
derivative instruments and
non-cash amortization of
deferred financing fees.
(2) Corporate allocation expense,
intercompany fees and the tax
effect have been excluded from
the above table as they are
eliminated on consolidation.
(3) 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, Change
Favorable/(Unfavorable)
-----------------------
2017 2016
---- ----
$ $ $ %
--- --- --- ---
($ In Thousands) (Unaudited)
Revenue 212,753 177,988 34,765 19.5
Cost of services (exclusive
of depreciation and
amortization of
intangibles shown
separately below) 93,922 66,162 (27,760) (42.0)
------ ------ -------
Gross margin 118,831 111,826 7,005 6.3
Selling, general and
administrative expenses 53,890 52,611 (1,279) (2.4)
Depreciation and
amortization 25,033 22,191 (2,842) (12.8)
------ ------ ------
Operating income 39,908 37,024 2,884 7.8
Interest expense, net(1) (3,446) (13,314) 9,868 74.1
Other (expense) income, net (86) 390 (476) (122.1)
Provision for income taxes (14,550) (9,742) (4,808) (49.4)
------- ------ ------
Net income(2) 21,826 14,358 7,468 52.0
====== ====== =====
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(2) 21,826 14,358
Interest expense, net(1) 3,446 13,314
Provision for income taxes 14,550 9,742
Depreciation and
amortization 25,033 22,191
Pension expense(3) 5 17
Other non-cash expense
(income), net 62 (91)
--- ---
EBITDA excluding non-cash
items 64,922 59,531 5,391 9.1
====== ====== =====
EBITDA excluding non-cash
items 64,922 59,531
Interest expense, net(1) (3,446) (13,314)
Convertible senior notes
interest(4) (1,744) -
Adjustments to derivative
instruments recorded in
interest expense(1) 133 5,608
Amortization of debt
financing costs(1) 314 800
Provision for income taxes,
net of changes in deferred
taxes (2,872) (1,452)
Changes in working capital (6,116) 6,044
------ -----
Cash provided by operating
activities 51,191 57,217
Changes in working capital 6,116 (6,044)
Maintenance capital
expenditures (925) (2,284)
---- ------
Free cash flow 56,382 48,889 7,493 15.3
====== ====== =====
(1) Interest expense, net,
includes adjustments to
derivative instruments and
non-cash amortization of
deferred financing fees.
(2) Corporate allocation expense,
intercompany fees and the tax
effect have been excluded from
the above table as they are
eliminated on consolidation.
(3) 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
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, Change Favorable/(Unfavorable)
----------------------- ------------------------------
2017 2016
---- ----
$ $ $ %
--- --- --- ---
($ In Thousands) (Unaudited)
Product revenue 28,070 30,179 (2,109) (7.0)
Cost of product sales 4,859 4,357 (502) (11.5)
Selling, general and
administrative expenses 5,165 5,960 795 13.3
Depreciation and
amortization 15,340 13,846 (1,494) (10.8)
------ ------ ------
Operating income 2,706 6,016 (3,310) (55.0)
Interest expense, net(1) (5,383) (17,848) 12,465 69.8
Other income, net 765 305 460 150.8
(Provision) benefit for
income taxes (27) 2,304 (2,331) (101.2)
--- ----- ------
Net loss(2) (1,939) (9,223) 7,284 79.0
Less: net loss attributable
to noncontrolling interest (3,349) (2,238) 1,111 49.6
------ ------ -----
Net income (loss)
attributable to MIC(2) 1,410 (6,985) 8,395 120.2
===== ====== =====
Reconciliation of net loss
to EBITDA excluding non-
cash items and a
reconciliation of cash
provided by operating
activities to Free Cash
Flow:
Net loss(2) (1,939) (9,223)
Interest expense, net(1) 5,383 17,848
Provision (benefit) for
income taxes 27 (2,304)
Depreciation and
amortization 15,340 13,846
Other non-cash income,
net(3) (2,024) (2,020)
------ ------
EBITDA excluding non-cash
items 16,787 18,147 (1,360) (7.5)
====== ====== ======
EBITDA excluding non-cash
items 16,787 18,147
Interest expense, net(1) (5,383) (17,848)
Adjustments to derivative
instruments recorded in
interest expense(1) (1,834) 11,268
Amortization of debt
financing costs(1) 379 383
Provision/benefit for
income taxes, net of
changes in deferred taxes (88) (7)
Changes in working capital 142 2,612
--- -----
Cash provided by operating
activities 10,003 14,555
Changes in working capital (142) (2,612)
Maintenance capital
expenditures (22) -
--- ---
Free cash flow 9,839 11,943 (2,104) (17.6)
===== ====== ======
(1) Interest expense, net,
includes adjustments to
derivative instruments and
non-cash amortization of
deferred financing fees.
(2) Corporate allocation expense,
intercompany fees and the tax
effect have been excluded from
the above table as they are
eliminated on consolidation.
(3) Other non-cash 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.
MIC Hawaii
----------
Quarter Ended March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016
---- ----
$ $ $ %
--- --- --- ---
($ In Thousands) (Unaudited)
Product revenue 59,583 53,967 5,616 10.4
Service revenue 13,457 - 13,457 NM
------ --- ------
Total revenue 73,040 53,967 19,073 35.3
Cost of product sales
(exclusive of depreciation
and amortization of
intangibles shown
separately below) 42,366 28,703 (13,663) (47.6)
Cost of services (exclusive
of depreciation and
amortization of
intangibles shown
separately below) 10,940 - (10,940) NM
------ --- -------
Cost of revenue - total 53,306 28,703 (24,603) (85.7)
------ ------ -------
Gross margin 19,734 25,264 (5,530) (21.9)
Selling, general and
administrative expenses 6,085 5,256 (829) (15.8)
Depreciation and
amortization 3,481 2,350 (1,131) (48.1)
----- ----- ------
Operating income 10,168 17,658 (7,490) (42.4)
Interest expense, net(1) (1,711) (2,424) 713 29.4
Other expense, net (205) (254) 49 19.3
Provision for income taxes (3,379) (5,911) 2,532 42.8
------ ------ -----
Net income(2) 4,873 9,069 (4,196) (46.3)
Less: net loss attributable
to noncontrolling
interests (28) - 28 NM
--- --- ---
Net income attributable to
MIC(2) 4,901 9,069 (4,168) (46.0)
===== ===== ======
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(2) 4,873 9,069
Interest expense, net(1) 1,711 2,424
Provision for income taxes 3,379 5,911
Depreciation and
amortization 3,481 2,350
Pension expense(3) 273 350
Other non-cash expense
(income), net(4) 5,571 (2,752)
----- ------
EBITDA excluding non-cash
items 19,288 17,352 1,936 11.2
====== ====== =====
EBITDA excluding non-cash
items 19,288 17,352
Interest expense, net(1) (1,711) (2,424)
Adjustments to derivative
instruments recorded in
interest expense(1) (226) 119
Amortization of debt
financing costs(1) 105 664
Provision for income taxes,
net of changes in deferred
taxes (1,451) (3,017)
Changes in working capital (8,480) 2,937
------ -----
Cash provided by operating
activities 7,525 15,631
Changes in working capital 8,480 (2,937)
Maintenance capital
expenditures (1,069) (1,832)
------ ------
Free cash flow 14,936 10,862 4,074 37.5
====== ====== =====
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. For
the quarter ended March 31,
2016, interest expense also
included a non-cash write-
off of deferred financing fees
related to the February 2016
refinancing at Hawaii Gas.
(2) Corporate allocation expense,
intercompany fees and the tax
effect have been excluded from
the above table as they are
eliminated on consolidation.
(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
adjustments related to unrealized
gains (losses) on commodity hedges.
See "Earnings Before Interest, Taxes,
Depreciation and Amortization
(EBITDA) excluding non-cash items,
Free Cash Flow and Proportionately
Combined Metrics" above for further
discussion.
Corporate and Other
-------------------
Quarter Ended March 31, Change
Favorable/(Unfavorable)
-----------------------
2017 2016
---- ----
$ $ $ %
--- --- --- ---
($ In Thousands) (Unaudited)
Fees to Manager-related
party 18,223 14,796 (3,427) (23.2)
Selling, general and
administrative expenses(1) 3,995 1,455 (2,540) (174.6)
----- ----- ------
Operating loss (22,218) (16,251) (5,967) (36.7)
Interest expense, net(2) (6,151) (3,405) (2,746) (80.6)
Benefit for income taxes 12,431 9,411 3,020 32.1
------ ----- -----
Net loss(3) (15,938) (10,245) (5,693) (55.6)
======= ======= ======
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(3) (15,938) (10,245)
Interest expense, net(2) 6,151 3,405
Benefit for income taxes (12,431) (9,411)
Fees to Manager-related
party 18,223 14,796
Other non-cash expense 188 188
--- ---
EBITDA excluding non-cash
items (3,807) (1,267) (2,540) NM
====== ====== ======
EBITDA excluding non-cash
items (3,807) (1,267)
Interest expense, net(2) (6,151) (3,405)
Convertible senior notes
interest(4) 1,744 -
Amortization of debt
financing costs(2) 993 612
Amortization of debt
discount(2) 619 -
Benefit for income taxes,
net of changes in deferred
taxes 2,948 3,200
Changes in working capital (8,434) (6,311)
------ ------
Cash used in operating
activities (12,088) (7,171)
Changes in working capital 8,434 6,311
----- -----
Free cash flow (3,654) (860) (2,794) NM
====== ==== ======
NM - Not meaningful
(1) For the quarter ended March 31,
2017, selling, general and
administrative expenses included
$2.3 million of costs related to
the implementation of a shared
services initiative.
(2) Interest expense, net,
includes non-cash
amortization of deferred
financing fees and
amortization of debt discount
related to the 2.00%
Convertible Senior Notes due
October 2023.
(3) Corporate allocation expense,
intercompany fees and the tax
effect have been excluded from
the above table as they are
eliminated on consolidation.
(4) Represents the cash
interest expense reclassified
to Atlantic Aviation related
to the 2.00% Convertible
Senior Notes due October
2023, proceeds of which were
used to pay down a portion of
Atlantic Aviation's credit
facility in October 2016.
MACQUARIE INFRASTRUCTURE CORPORATION
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO PROPORTIONATELY COMBINED FREE CASH FLOW
($ in Thousands Unaudited)
For the Quarter Ended March 31, 2017
------------------------------------
IMTT Atlantic Contracted MIC MIC Proportionately Contracted
Power MIC
Aviation Power(1) Hawaii(1) Corporate Combined(2) 100% Hawaii
100%
---
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 83,125 64,922 14,321 19,284 (3,807) 177,845 16,787 19,288
non-cash items
EBITDA excluding 83,125 64,922 14,321 19,284 (3,807) 177,845 16,787 19,288
non-cash items
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 deferred finance
charges(3) 411 314 364 105 993 2,187 379 105
Amortization of debt discount(3) - - - - 619 619 - -
Provision/benefit for income taxes,
net of changes in deferred taxes (2,258) (2,872) (88) (1,451) 2,948 (3,721) (88) (1,451)
Changes in working capital 736 (6,116) (148) (8,482) (8,434) (22,444) 142 (8,480)
--- ------ ---- ------ ------ ------- --- ------
Cash provided by 71,937 51,191 8,045 7,520 (12,088) 126,605 10,003 7,525
(used in) operating activities
Changes in working capital (736) 6,116 148 8,482 8,434 22,444 (142) 8,480
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
====== ====== ===== ====== ====== ======= ===== ======
For the Quarter Ended March 31, 2016
------------------------------------
IMTT(7) Atlantic Contracted MIC MIC Proportionately
Combined(2) Contracted
Aviation Power(1) Hawaii Corporate Power
100%
---
Net income (loss) 16,217 14,358 (8,439) 9,069 (10,245) 20,960 (9,223)
Interest expense, net(3) 19,871 13,314 15,788 2,424 3,405 54,802 17,848
Provision (benefit) for income
taxes 11,229 9,742 (2,304) 5,911 (9,411) 15,167 (2,304)
Depreciation and amortization
of intangibles 32,621 22,191 11,972 2,350 - 69,134 13,846
Fees to Manager-related party - - - - 14,796 14,796 -
Pension expense(4) 1,831 17 - 350 - 2,198 -
Other non-cash expense
(income), net(5) 443 (91) (2,002) (2,752) 188 (4,214) (2,020)
--- --- ------ ------ --- ------ ------
EBITDA excluding non-cash
items 82,212 59,531 15,015 17,352 (1,267) 172,843 18,147
------ ------ ------ ------ ------ ------- ------
EBITDA excluding non-cash
items 82,212 59,531 15,015 17,352 (1,267) 172,843 18,147
Interest expense, net(3) (19,871) (13,314) (15,788) (2,424) (3,405) (54,802) (17,848)
Adjustments to derivative
instruments recorded in
interest expense, net(3) 9,610 5,608 10,071 119 - 25,408 11,268
Amortization of deferred
finance charges(3) 420 800 369 664 612 2,865 383
Provision/benefit for income
taxes, net of changes in
deferred taxes (1,230) (1,452) (7) (3,017) 3,200 (2,506) (7)
Changes in working capital (2,807) 6,044 2,384 2,937 (6,311) 2,247 2,612
------ ----- ----- ----- ------ ----- -----
Cash provided by (used in)
operating activities 68,334 57,217 12,044 15,631 (7,171) 146,055 14,555
Changes in working capital 2,807 (6,044) (2,384) (2,937) 6,311 (2,247) (2,612)
Maintenance capital (6,297) (2,284) - (1,832) - (10,413) -
expenditures
Proportionately Combined Free
Cash Flow 64,844 48,889 9,660 10,862 (860) 133,395 11,943
====== ====== ===== ====== ==== ======= ======
(1) Represents MIC's proportionately
combined interests in the businesses
comprising this reportable segment.
(2) The sum of the amounts
attributable to MIC proportion to
its ownership.
(3) Interest expense, net, includes
adjustments to derivative
instruments, non-cash amortization
of deferred financing charges and
non-cash amortization of debt
discount related to the 2.00%
Convertible Senior Notes due October
2023. For the quarter ended March
31, 2016, interest expense, net,
also includes a non-cash write-off
of deferred financing fees related
to the February 2016 refinancing at
Hawaii Gas.
(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) On March 31, 2016, IMTT acquired
the remaining 33.3% interest in its
Quebec terminal that it did not
previously own. IMTT was previously
providing management services to
this terminal and no operational
changes are expected. Prior to the
acquisition, IMTT consolidated the
results of the Quebec terminal in
its financial statements and
adjusted for the portion that it did
not own through noncontrolling
interests. Since the IMTT
Acquisition in July 2014 and prior
to the acquisition of the
noncontrolling interest, MIC
reported IMTT's EBITDA excluding
non-cash items and Free Cash Flow
including the 33.3% portion of the
Quebec terminal. The contribution
from the minority interest was not
significant. Therefore, there were
no changes to our historical EBITDA
excluding non-cash items, Free Cash
Flow or results generally as a
function of acquiring this
noncontrolling interest.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mic-reports-first-quarter-2017-financial-results-increases-quarterly-cash-dividend-300451055.html
SOURCE Macquarie Infrastructure Corporation
