MIC Studies Second Quarter 2021 Monetary And Operational Outcomes

NEW YORK, Aug. 3, 2021 /PRNewswire/ — Macquarie Infrastructure Corporation (NYSE: MIC) (the “Company”) today provided an update on the previously announced sales of its Atlantic Aviation and MIC Hawaii businesses and reported its operational and financial results for the second quarter of 2021. 

“The increase in general aviation flight activity drove strong results in the quarter for Atlantic Aviation,” said Christopher Frost, chief executive officer of MIC. “Within our MIC Hawaii segment, we benefited from an increase in visitor arrivals in Hawaii.”

Update on Announced Sales

On June 7, 2021, MIC announced the sale of its Atlantic Aviation business (the “AA Transaction”) to a newly formed entity controlled by KKR for $4.475 billion. On July 15, 2021, the waiting period for the Federal Trade Commission’s review of the AA Transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without comment.

The MIC Board of Directors set August 23, 2021 as the record date for a Special Meeting of Shareholders to be held at 10:00 am Eastern time on September 21, 2021. At the meeting, shareholders will be asked to approve the AA Transaction. If approved, MIC expects the AA Transaction to close at the end of the third quarter of 2021 and result in a distribution of approximately $37.35 per unit. 

On June 14, 2021, MIC announced the merger of its MIC Hawaii businesses (the “MH Merger”) into a newly formed entity managed by Argo Infrastructure Partners (“Argo”) for $3.83 per unit.

On July 7, 2021, together with MIC Hawaii and Argo, the Company filed a petition with the Hawaii Public Utilities Commission seeking approval of the change of control over the regulated portion of Hawaii Gas as contemplated in the MH Merger. The approval process is expected to conclude in the first half of 2022. Shareholders will be asked to approve the MH Merger, in addition to the AA Transaction, at the September 21, 2021 Special Meeting of Shareholders.

Operational and Financial Results

MIC’s results for the second quarter of 2021 reflect solid performance by its Atlantic Aviation subsidiary on the strength of the recovery in domestic general aviation flight activity and a continued positive trajectory in the performance of its MIC Hawaii businesses as tourism in Hawaii recovers from COVID-induced lows.

MIC recorded net income from continuing operations of $6.9 million compared with a net loss of $24.4 million in the second quarter of 2020 (“prior comparable period”). The improvement reflects primarily higher revenue and lower interest expense, partially offset by increases in operating expenses and income taxes.

The Company reported Adjusted EBITDA excluding non-cash items from continuing operations of $77.9 million for the quarter, versus $18.6 million in the prior comparable period.

MIC used $79.5 million of cash from operating activities during the quarter ended June 30, 2021 compared with cash provided by operating activities of $17.8 million in the prior comparable period. The change primarily reflects the payment of capital gains taxes related to the sale of the Company’s IMTT business, partially offset by higher EBITDA excluding non-cash items.

The Company reported Adjusted Free Cash Flow from continuing operations of $51.6 million for the quarter, versus $1.2 million in the prior comparable period. The increase reflects higher EBITDA excluding non-cash items and lower cash interest, partially offset by higher cash taxes and maintenance capital expenditures.

Second Quarter 2021 Segment Results

Atlantic Aviation

Atlantic Aviation generated EBITDA excluding non-cash items of $70.3 million in the second quarter of 2021, up from $16.9 million in the prior comparable period and above the $61.9 million recorded in the second quarter of 2019. The result was driven by a substantial recovery in general aviation flight activity (take offs and landings) versus the second quarter in 2020.

As reported by the Federal Aviation Administration, same store general aviation flight activity at airports on which Atlantic Aviation operates increased by 137% in the second quarter compared with the second quarter of 2020 and increased by 11% versus the second quarter of 2019. The activity was substantially domestic in nature and was strongest at predominantly leisure-oriented destinations in the Intermountain West and Florida. Although activity at business-oriented destinations increased during the quarter, it remains below industry average and pre-pandemic levels.

MIC Hawaii

MIC Hawaii generated EBITDA excluding non-cash items of $11.1 million in the second quarter of 2021, up from $7.2 million in the second quarter of 2020 and down from $14.3 million in the second quarter in 2019. The result reflects the ongoing recovery in the number of visitors to Hawaii from the lows in 2020, although not yet to the historically high levels of 2019, partially offset by a higher cost of purchased propane.

Commercial and industrial gas consumption increased during the quarter with the higher number of visitor arrivals while residential gas consumption was stable. Total gas consumption increased by 54% versus the second quarter in 2020 but was 8% below consumption in the second quarter of 2019.

Corporate and Other

MIC’s Corporate and Other segment result primarily includes fees payable to the Company’s external manager, public company expenses and interest expense on holding company level debt. Higher expenditures in the second quarter of 2021, including costs incurred in connection with efforts to sell the Company’s operating businesses, resulted in the generation of EBITDA excluding non-cash items of ($10.1) million compared with ($7.3) million the second quarter of 2020.

Discontinuing Financial Guidance

With the announced sales of Atlantic Aviation and MIC Hawaii, the Company will no longer provide outlook on the performance of its businesses and is withdrawing its previously provided guidance.

Summary Financial Information


Quarter Ended

June 30,


Change

Favorable/

(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/

(Unfavorable)


2021


2020


$


%


2021


2020


$


%


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

GAAP Metrics
















Continuing Operations
















Net income (loss)

$

6,933



$

(24,429)



31,362



128



$

20,730



$

(31,417)



52,147



166


Net income (loss) per share attributable to MIC

0.08



(0.29)



0.37



128



0.23



(0.37)



0.60



162


Cash (used in) provided by operating activities

(79,539)



17,779



(97,318)



NM



(39,546)



69,319



(108,865)



(157)


Discontinued Operations
















Net income

$



$

17,131



(17,131)



(100)



$



$

35,346



(35,346)



(100)


Net income per share attributable to MIC



0.20



(0.20)



(100)





0.41



(0.41)



(100)


Cash provided by operating activities



54,588



(54,588)



(100)





103,276



(103,276)



(100)


Weighted average number of shares outstanding: basic

87,628,429



86,871,892



756,537



1



87,520,541



86,779,432



741,109



1


MIC Non-GAAP Metrics
















EBITDA excluding non-cash items – continuing operations

$

71,278



$

16,878



54,400



NM



$

143,928



$

81,342



62,586



77


Investment and acquisition/disposition costs

6,596



1,719



4,877



NM



10,875



12,826



(1,951)



(15)


Adjusted EBITDA excluding non – cash items–continuing operations

77,874



18,597



59,277



NM



154,803



94,168



60,635



64


Cash interest

(15,387)



(19,264)



3,877



20



(28,442)



(37,834)



9,392



25


Cash taxes

(4,730)



5,638



(10,368)



(184)



(7,939)



818



(8,757)



NM


Maintenance capital expenditures

(6,140)



(3,738)



(2,402)



(64)



(9,804)



(9,452)



(352)



(4)


Adjusted Free Cash Flow – continuing operations

$

51,617



$

1,233



50,384



NM



$

108,618



$

47,700



60,918



128


EBITDA excluding non-cash items – discontinued operations

$



$

67,689



(67,689)



(100)



$



$

145,336



(145,336)



(100)


Cash interest



(10,059)



10,059



100





(19,828)



19,828



100


Cash taxes



(847)



847



100





(2,954)



2,954



100


Maintenance capital expenditures



(12,872)



12,872



100





(18,487)



18,487



100


Free Cash Flow – discontinued operations

$



$

43,911



(43,911)



(100)



$



$

104,067



(104,067)



(100)


Adjusted Free Cash Flow – consolidated

$

51,617



$

45,144



6,473



14



$

108,618



$

151,767



(43,149)



(28)


___________________

NM — Not meaningful.

About MIC

MIC owns and operates businesses providing basic services to customers in the United States. Its businesses consist of 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.

Use of Non-GAAP Measures

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow

In addition to MIC’s results under U.S. GAAP, the Company uses the non-GAAP measures EBITDA excluding non-cash items and Free Cash Flow to assess the performance and prospects 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 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. Other non-cash expenses, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries. EBITDA excluding non-cash items also excludes base management fees and performance fees, if any, whether paid in cash or stock.

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 —less maintenance capital expenditures and adjusted for changes in working capital.

Management uses Free Cash Flow as a measure of its ability to fund acquisitions, invest in growth projects, reduce, or repay indebtedness and/or return capital to shareholders. GAAP metrics such as net income (loss) do not provide MIC management with the same level of visibility 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 mark-to-market adjustment of the value of derivative instruments; (v) gains (losses) related to the write-off or disposal of assets or liabilities, (vi) non-cash compensation expense incurred in relation to the incentive plans for senior management of the Company’s operating business; 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 in 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 to assess the Company’s ability to fund acquisitions, invest in growth projects, reduce or repay indebtedness, and/or return capital to shareholders.

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 and Other. 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 the tables below for a reconciliation of Net Income (loss) to EBITDA excluding non-cash items from continuing operations and a reconciliation of cash provided by operating activities from continuing operations to Free Cash Flow from continuing operations.

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 various factors in determining whether a specific capital expenditure will be classified as maintenance or growth.

MIC does not bifurcate specific capital expenditures into growth and maintenance components. Each discrete capital expenditure is considered within the above framework and the entire capital expenditure is classified as either maintenance or growth.

Important Information For Investors And Stockholders

In connection with the proposed transactions, Macquarie Infrastructure Corporation (the “Company”) has filed a proxy statement with the Securities and Exchange Commission (“SEC”) on July 15, 2021, the definitive version of which will be mailed to stockholders of the Company.  INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders are able to obtain free copies of the proxy statement and other documents filed with the SEC by the Company through the website maintained by the SEC at https://www.sec.gov. Copies of the documents filed with the SEC by the Company will also be available free of charge on the Company website at www.macquarie.com/mic or by writing to us at 125 West 55th Street, New York, New York 10019, United States of America, Attention: Investor Relations.

Certain Information Regarding Participants

The Company and its directors and executive officers may be considered participants in the solicitation of proxies in connection with the proposed transactions.  Information about the directors and executive officers of the Company is set forth in its Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on February 17, 2021, and its definitive proxy statement for its 2021 annual meeting of stockholders, which was filed with the SEC on March 29, 2021.  Other information regarding the participants of the Company in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC regarding the transaction when they become available.

Disclaimer on Forward Looking Statements

This communication contains forward-looking statements.  The Company 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.  Such statements include, among others, those concerning the Company’s expected financial performance and strategic and operational plans, statements regarding sales of the Company’s operating businesses (including the Company’s reorganization) and the anticipated uses of any proceeds therefrom, statements regarding the anticipated specific and overall impacts of the COVID-19 pandemic, as well as all assumptions, expectations, predictions, intentions or beliefs about future events.  Forward-looking statements in this communication are subject to a number of risks and uncertainties, some of which are beyond the Company’s control, including, among other things: changes in general economic or business conditions; the ongoing impact of the COVID-19 pandemic; the Company’s ability to complete the sales of its operating businesses; uncertainties as to the timing of the consummation of the proposed transactions; the risk that conditions to closing of the proposed transactions are not satisfied, including the failure to timely obtain the requisite stockholder approvals or regulatory clearances; the occurrence of any event giving rise to a termination of the proposed transactions; the Company’s ability to service, comply with the terms of and refinance debt; its ability to retain or replace qualified employees; in the absence of a sale or sales of its businesses, its ability to 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; the Company’s ability to recover increases in costs from customers; cybersecurity risks; work interruptions or other labor stoppages; risks associated with acquisitions or dispositions; litigation risks; reliance on sole or limited source suppliers, risks or conflicts of interests involving the Company’s relationship with the Macquarie Group; and changes in U.S. federal tax law.  These and other risks and uncertainties are described under the caption “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its other reports filed from time to time with the SEC.

The Company’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 the Company 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 communication may not occur.  These forward-looking statements are made as of the date of this communication. The Company 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 INFRASTRUCTURE CORPORATION


CONSOLIDATED CONDENSED BALANCE SHEETS

($ in Thousands, Except Share Data)



June 30,

2021


December 31,

2020


(Unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

319,690



$

1,828,063


Restricted cash

11,790



11,157


Accounts receivable, net of allowance for doubtful accounts

55,057



46,862


Inventories

19,663



16,551


Prepaid expenses

13,385



8,326


Other current assets

12,101



9,197


Total current assets

431,686



1,920,156


Property, equipment, land and leasehold improvements, net

849,530



854,200


Operating lease assets, net

321,941



322,892


Goodwill

617,072



616,939


Intangible assets, net

441,012



457,587


Other noncurrent assets

8,863



6,865


Total assets

$

2,670,104



$

4,178,639


LIABILITIES AND STOCKHOLDERS’ EQUITY




Current liabilities:




Due to Manager-related party

$

2,755



$

1,203


Accounts payable

31,406



30,470


Accrued expenses

50,177



46,112


Current portion of long-term debt

11,333



11,310


Dividend payable



960,981


Operating lease liabilities – current

17,069



17,157


Income taxes payable

3,200



132,113


Other current liabilities

24,121



22,861


Total current liabilities

140,061



1,222,207


Long-term debt, net of current portion

1,097,923



1,554,359


Deferred income taxes

132,738



126,858


Operating lease liabilities – noncurrent

311,122



311,597


Other noncurrent liabilities

64,893



70,312


Total liabilities

1,746,737



3,285,333


Commitments and contingencies




Stockholders’ equity(1):




Common Stock ($0.001 par value; 500,000,000 authorized; 87,780,539 shares issued and outstanding on June 30, 2021 and 87,361,929 shares issued and outstanding on December 31, 2020)

$

88



$

87


Additional paid in capital

180,346



177,975


Accumulated other comprehensive loss

(6,175)



(6,175)


Retained earnings

740,640



713,129


Total stockholders’ equity

914,899



885,016


Noncontrolling interests

8,468



8,290


Total equity

923,367



893,306


Total liabilities and equity

$

2,670,104



$

4,178,639


_____________________

(1)

The Company is authorized to issue 100,000,000 shares of preferred stock, par value $0.001 per share authorized. On June 30, 2021 and December 31, 2020, no preferred stocks were issued or outstanding. The Company had 100 shares of special stock, par value $0.001 per share, issued and outstanding to its Manager on June 30, 2021 and December 31, 2020.

MACQUARIE INFRASTRUCTURE CORPORATION


CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

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



Quarter Ended
June 30,


Six Months Ended

June 30,


2021


2020


2021


2020

Revenue








Service revenue

$

230,037



$

104,318



$

439,641



$

328,315


Product revenue

58,740



36,795



113,327



97,257


Total revenue

288,777



141,113



552,968



425,572


Costs and expenses








Cost of services

99,534



29,280



181,767



123,943


Cost of product sales

37,834



18,225



72,590



60,159


Selling, general and administrative

80,822



73,049



157,834



160,632


Fees to Manager – related party

7,551



3,824



13,103



11,180


Depreciation

19,629



19,745



38,860



39,271


Amortization of intangibles

8,287



9,273



16,575



20,278


Total operating expenses 

253,657



153,396



480,729



415,463


Operating income (loss)

35,120



(12,283)



72,239



10,109


Other income (expense)








Interest income

41



189



202



657


Interest expense(1)

(16,773)



(23,639)



(35,392)



(50,344)


Other income (expense), net

793



46



1,295



(100)


Net income (loss) from continuing operations before income taxes

19,181



(35,687)



38,344



(39,678)


(Provision) benefit for income taxes

(12,248)



11,258



(17,614)



8,261


Net income (loss) from continuing operations

6,933



(24,429)



20,730



(31,417)










Discontinued Operations(2)








Net income from discontinued operations before income taxes



22,371





46,916


Provision for income taxes



(5,240)





(11,570)


Net income from discontinued operations



17,131





35,346


Net income (loss)

6,933



(7,298)



20,730



3,929










Net income (loss) from continuing operations

6,933



(24,429)



20,730



(31,417)


Less: net (loss) income attributable to noncontrolling interest

(416)



656



181



581


Net income (loss) from continuing operations attributable to MIC

7,349



(25,085)



20,549



(31,998)


Net income from discontinued operations



17,131





35,346


Net income from discontinued operations attributable to MIC



17,131





35,346


Net income (loss) attributable to MIC

$

7,349



$

(7,954)



$

20,549



$

3,348










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

$

0.08



$

(0.29)



$

0.23



$

(0.37)


Basic income per share from discontinued operations attributable to MIC



0.20





0.41


Basic income (loss) per share attributable to MIC

$

0.08



$

(0.09)



$

0.23



$

0.04


Weighted average number of shares outstanding: basic

87,628,429



86,871,892



87,520,541



86,779,432










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

$

0.08



$

(0.29)



$

0.23



$

(0.37)


Diluted income per share from discontinued operations attributable to MIC



0.20





0.41


Diluted income (loss) per share attributable to MIC

$

0.08



$

(0.09)



$

0.23



$

0.04


Weighted average number of shares outstanding: diluted

87,728,174



86,871,892



87,612,379



86,779,432


____________________

(1)

Interest expense includes non-cash losses on derivative instruments of $78,000 and non-cash gains of $203,000 for the quarter and six months ended June 30, 2021, respectively, compared with non-cash losses of $172,000 and $4.4 million for the quarter and six months ended June 30, 2020, respectively.



(2)

See Note 4, “Discontinued Operations and Dispositions”, in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2021, for discussions on businesses classified as held for sale.

MACQUARIE INFRASTRUCTURE CORPORATION


CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

($ in Thousands)



Six Months Ended June 30,


2021


2020

Operating activities




Net income (loss) from continuing operations

$

20,730



$

(31,417)


Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities from continuing operations:




Depreciation

38,860



39,271


Amortization of intangibles

16,575



20,278


Write-off of debt financing costs

4,562



1,468


Amortization of debt discount and financing costs

2,476



5,218


Adjustments to derivative instruments

(5,153)



1,192


Fees to Manager – related party

13,103



11,180


Deferred taxes

9,675



(7,443)


Other non-cash expense, net

6,647



4,944


Changes in other assets and liabilities, net of acquisitions:




Accounts receivable

(8,136)



25,756


Inventories

(3,720)



6,079


Prepaid expenses and other current assets

(5,480)



(2,734)


Due to Manager – related party



(41)


Accounts payable and accrued expenses

3,988



(13,010)


Income taxes payable

(128,085)



(2,263)


Other, net

(5,588)



10,841


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

(39,546)



69,319


Investing activities




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



(13,495)


Purchases of property and equipment

(32,864)



(29,285)


Other, net

59



11


Net cash used in investing activities from continuing operations

(32,805)



(42,769)


Financing activities




Proceeds from long-term debt



874,000


Payment of long-term debt

(474,113)



(280,874)


Dividends paid to common stockholders

(960,981)



(86,742)


Distributions paid to noncontrolling interest

(3)




Debt financing costs paid

(292)



(386)


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

(1,435,389)



505,998


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

(1,507,740)



532,548


MACQUARIE INFRASTRUCTURE CORPORATION


CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS – (continued)

(Unaudited)

($ in Thousands)



Six Months Ended June 30,


2021


2020

Cash flows provided by (used in) discontinued operations:




Net cash provided by operating activities

$



$

103,276


Net cash used in investing activities



(106,003)


Net cash used in discontinued operations



(2,727)


Effect of exchange rate changes on cash and cash equivalents



(222)


Net change in cash, cash equivalents, and restricted cash

(1,507,740)



529,599


Cash, cash equivalents, and restricted cash, beginning of period

1,839,220



358,565


Cash, cash equivalents, and restricted cash, end of period

$

331,480



$

888,164


Supplemental disclosures of cash flow information:




Non-cash investing and financing activities:




Accrued purchases of property and equipment from continuing operations

$

6,231



$

3,317


Accrued purchases of property and equipment from discontinued operations



15,939


Accrued debt financing costs from continuing operations



59


   Leased assets obtained in exchange for new operating lease liabilities from continuing operations

806



5,267


   Leased assets obtained in exchange for new operating lease liabilities from discontinued operations



726


Taxes paid, net, from continuing operations

135,894



1,444


Taxes paid, net, from discontinued operations



2,653


Interest paid, net, from continuing operations

32,899



39,205


Interest paid, net, from discontinued operations



19,689


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


As of June 30,


2021


2020

Cash and cash equivalents

$

319,690



$

845,604


Restricted cash – current

11,790



13,721


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



28,839


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

$

331,480



$

888,164


MACQUARIE INFRASTRUCTURE CORPORATION


CONSOLIDATED STATEMENTS OF OPERATIONS – MD&A



Quarter Ended

June 30,


Change

Favorable/(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/(Unfavorable)


2021


2020


$


%


2021


2020


$


%


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

Revenue
















Service revenue

$

230,037



$

104,318



125,719



121



$

439,641



$

328,315



111,326



34


Product revenue

58,740



36,795



21,945



60



113,327



97,257



16,070



17


Total revenue

288,777



141,113



147,664



105



552,968



425,572



127,396



30


Costs and expenses
















Cost of services

99,534



29,280



(70,254)



NM



181,767



123,943



(57,824)



(47)


Cost of product sales

37,834



18,225



(19,609)



(108)



72,590



60,159



(12,431)



(21)


Selling, general and administrative

80,822



73,049



(7,773)



(11)



157,834



160,632



2,798



2


Fees to Manager – related party

7,551



3,824



(3,727)



(97)



13,103



11,180



(1,923)



(17)


Depreciation and amortization

27,916



29,018



1,102



4



55,435



59,549



4,114



7


Total operating expenses 

253,657



153,396



(100,261)



(65)



480,729



415,463



(65,266)



(16)


Operating income (loss)

35,120



(12,283)



47,403



NM



72,239



10,109



62,130



NM


Other income (expense)
















Interest income

41



189



(148)



(78)



202



657



(455)



(69)


Interest expense(1)

(16,773)



(23,639)



6,866



29



(35,392)



(50,344)



14,952



30


Other income (expense), net

793



46



747



NM



1,295



(100)



1,395



NM


Net income (loss) from continuing operations before income taxes

19,181



(35,687)



54,868



154



38,344



(39,678)



78,022



197


(Provision) benefit for income taxes

(12,248)



11,258



(23,506)



NM



(17,614)



8,261



(25,875)



NM


Net income (loss) from continuing operations

6,933



(24,429)



31,362



128



20,730



(31,417)



52,147



166


















Discontinued Operations
















Net income from discontinued operations before income taxes



22,371



(22,371)



(100)





46,916



(46,916)



(100)


Provision for income taxes



(5,240)



5,240



100





(11,570)



11,570



100


Net income from discontinued operations



17,131



(17,131)



(100)





35,346



(35,346)



(100)


Net income (loss)

6,933



(7,298)



14,231



195



20,730



3,929



16,801



NM


















Net income (loss) from continuing operations

6,933



(24,429)



31,362



128



20,730



(31,417)



52,147



166


Less: net (loss) income attributable to noncontrolling interests

(416)



656



1,072



163



181



581



400



69


Net income (loss) from continuing operations attributable to MIC

7,349



(25,085)



32,434



129



20,549



(31,998)



52,547



164


Net income from discontinued operations



17,131



(17,131)



(100)





35,346



(35,346)



(100)


Net income from discontinued operations attributable to MIC



17,131



(17,131)



(100)





35,346



(35,346)



(100)


Net income (loss) attributable to MIC

$

7,349



$

(7,954)



15,303



192



$

20,549



$

3,348



17,201



NM


















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

$

0.08



$

(0.29)



0.37



128



$

0.23



$

(0.37)



0.60



162


Basic income per share from discontinued operations attributable to MIC



0.20



(0.20)



(100)





0.41



(0.41)



(100)


Basic income (loss) per share attributable to MIC

$

0.08



$

(0.09)



0.17



189



$

0.23



$

0.04



0.19



NM


Weighted average number of shares outstanding: basic

87,628,429



86,871,892



756,537



1



87,520,541



86,779,432



741,109



1


___________________

NM — Not meaningful.



(1)

Interest expense includes non-cash losses on derivative instruments of $78,000 and non-cash gains of $203,000 for the quarter and six months ended June 30, 2021, respectively, compared with non-cash losses of $172,000 and $4.4 million for the quarter and six months ended June 30, 2020, respectively.

MACQUARIE INFRASTRUCTURE CORPORATION


RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO EBITDA EXCLUDING

NON-CASH ITEMS AND A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW



Quarter Ended

June 30,


Change

Favorable/(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/(Unfavorable)


2021


2020


$


%


2021


2020


$


%


($ In Thousands) (Unaudited)

Net income (loss) from continuing operations

$

6,933



$

(24,429)







$

20,730



$

(31,417)






Interest expense, net(1)

16,732



23,450







35,190



49,687






Provision (benefit) for income taxes

12,248



(11,258)







17,614



(8,261)






Depreciation and amortization

27,916



29,018







55,435



59,549






Fees to Manager – related party

7,551



3,824







13,103



11,180






Other non-cash (income) expense, net(2)

(102)



(3,727)







1,856



604






EBITDA excluding non-cash items – continuing operations

$

71,278



$

16,878



54,400



NM


$

143,928



$

81,342



62,586



77


















EBITDA excluding non-cash items – continuing operations

$

71,278



$

16,878







$

143,928



$

81,342






Interest expense, net(1)

(16,732)



(23,450)







(35,190)



(49,687)






Non-cash interest expense, net(1)

1,345



4,186







6,748



11,853






(Provision) benefit for current income taxes

(4,730)



5,638







(7,939)



818






Changes in working capital

(130,700)



14,527







(147,093)



24,993






Cash (used in) provided by operating activities – continuing operations

(79,539)



17,779







(39,546)



69,319






Changes in working capital

130,700



(14,527)







147,093



(24,993)






Maintenance capital expenditures

(6,140)



(3,738)







(9,804)



(9,452)






Free cash flow – continuing operations

$

45,021



$

(486)



45,507



NM


$

97,743



$

34,874



62,869



180


__________________

NM — Not meaningful.



(1)

Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash amortization of debt discount related to our 2.00% Convertible Senior Notes. For the quarter and six months ended June 30, 2021, interest expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes, the cancellation of the holding company revolving credit facility in January 2021, and the full repayment of the Hawaii Gas $100.0 million senior secured notes. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, the Company paid a $4.7 million ‘make-whole’ payment.



(2)

Other non-cash (income) expense, net, includes primarily non-cash mark-to-market adjustment of the value of the commodity hedge contracts, non-cash compensation expense incurred in relation to the incentive plans for senior management of our operating businesses, and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash (income) expense, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

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

Atlantic Aviation


Quarter Ended

June 30,


Change

Favorable/(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/(Unfavorable)


2021


2020



2021


2020



$


$


$


%


$


$


$


%


($ In Thousands) (Unaudited)

Service revenue

230,037



104,318



125,719



121



439,641



328,315



111,326



34


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

99,534



29,280



(70,254)



NM



181,767



123,943



(57,824)



(47)


Gross margin

130,503



75,038



55,465



74



257,874



204,372



53,502



26


Selling, general and administrative expenses

62,512



58,860



(3,652)



(6)



124,098



123,000



(1,098)



(1)


Depreciation and amortization

23,589



24,865



1,276



5



46,889



51,444



4,555



9


Operating income (loss)

44,402



(8,687)



53,089



NM



86,887



29,928



56,959



190


Interest expense, net(1)

(10,764)



(14,129)



3,365



24



(21,494)



(33,005)



11,511



35


Other income (expense), net

2



(133)



135



102



(16)



(205)



189



92


(Provision) benefit for income taxes

(9,015)



6,401



(15,416)



NM



(17,611)



922



(18,533)



NM


Net income (loss)

24,625



(16,548)



41,173



NM



47,766



(2,360)



50,126



NM


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
















Net income (loss)

24,625



(16,548)







47,766



(2,360)






Interest expense, net(1)

10,764



14,129







21,494



33,005






Provision (benefit) for income taxes

9,015



(6,401)







17,611



(922)






Depreciation and amortization

23,589



24,865







46,889



51,444






Other non-cash expense, net(2)

2,326



849







3,895



1,662






EBITDA excluding non-cash items

70,319



16,894



53,425



NM



137,655



82,829



54,826



66


















EBITDA excluding non-cash items

70,319



16,894







137,655



82,829






Interest expense, net(1)

(10,764)



(14,129)







(21,494)



(33,005)






Non-cash interest expense, net(1)

938



2,486







1,881



7,645






(Provision) benefit for current income taxes

(6,490)



8,497







(10,970)



(80)






Changes in working capital

6,961



8,050







8,877



23,717






Cash provided by operating activities

60,964



21,798







115,949



81,106






Changes in working capital

(6,961)



(8,050)







(8,877)



(23,717)






Maintenance capital expenditures

(4,494)



(2,361)







(7,044)



(5,406)






Free cash flow

49,509



11,387



38,122



NM



100,028



51,983



48,045



92


____________________

NM — Not meaningful.



(1)

Interest expense, net, includes non-cash adjustments to derivative instruments and non-cash amortization of debt financing fees.



(2)

Other non-cash expense, net, includes primarily non-cash compensation expense incurred in relation to incentive plans and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash expense, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

MIC Hawaii



Quarter Ended

June 30,


Change

Favorable/(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/(Unfavorable)


2021


2020



2021


2020



$


$


$


%


$


$


$


%


($ In Thousands) (Unaudited)

Product revenue

58,740



36,795



21,945



60



113,327



97,257



16,070



17


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

37,834



18,225



(19,609)



(108)



72,590



60,159



(12,431)



(21)


Gross margin

20,906



18,570



2,336



13



40,737



37,098



3,639



10


Selling, general and administrative expenses

6,929



6,438



(491)



(8)



12,606



12,760



154



1


Depreciation and amortization

3,840



3,778



(62)



(2)



7,588



7,402



(186)



(3)


Operating income

10,137



8,354



1,783



21



20,543



16,936



3,607



21


Interest expense, net(1)

(5,664)



(1,780)



(3,884)



NM



(6,968)



(4,555)



(2,413)



(53)


Other expense, net

(82)



(56)



(26)



(46)



(418)



(168)



(250)



(149)


Provision for income taxes

(1,318)



(1,772)



454



26



(3,685)



(3,547)



(138)



(4)


Net income

3,073



4,746



(1,673)



(35)



9,472



8,666



806



9


Less: net (loss) income attributable to noncontrolling interests

(416)



656



1,072



163



181



581



400



69


Net income attributable to MIC

3,489



4,090



(601)



(15)



9,291



8,085



1,206



15


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
















Net income

3,073



4,746







9,472



8,666






Interest expense, net(1)

5,664



1,780







6,968



4,555






Provision for income taxes

1,318



1,772







3,685



3,547






Depreciation and amortization

3,840



3,778







7,588



7,402






Other non-cash income, net(2)

(2,836)



(4,841)







(3,092)



(1,728)






EBITDA excluding non-cash items

11,059



7,235



3,824



53



24,621



22,442



2,179



10


















EBITDA excluding non-cash items

11,059



7,235







24,621



22,442






Interest expense, net(1)

(5,664)



(1,780)







(6,968)



(4,555)






Non-cash interest expense, net(1)

274



188







43



1,191






Provision for current income taxes

(669)



(791)







(2,185)



(2,914)






Changes in working capital

(5,760)



8,692







(7,456)



3,606






Cash (used in) provided by operating activities

(760)



13,544







8,055



19,770






Changes in working capital

5,760



(8,692)







7,456



(3,606)






Maintenance capital expenditures

(1,646)



(1,377)







(2,760)



(4,046)






Free cash flow

3,354



3,475



(121)



(3)



12,751



12,118



633



5


____________________

NM — Not meaningful.



(1)

Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash write-offs of debt financing costs related to the full repayment of the Hawaii Gas $100.0 million senior secured notes. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, Hawaii Gas paid a $4.7 million ‘make-whole’ payment.



(2)

Other non-cash income, net, includes primarily non-cash mark-to-market adjustment of the value of the commodity hedge contracts, non-cash compensation expense incurred in relation to incentive plans, and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash income, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

Corporate and Other



Quarter Ended

June 30,


Change

Favorable/(Unfavorable)


Six Months Ended

June 30,


Change

Favorable/(Unfavorable)


2021


2020



2021


2020



$


$


$


%


$


$


$


%


($ In Thousands) (Unaudited)

Selling, general and administrative expenses

11,381



7,751



(3,630)



(47)



21,130



24,872



3,742



15


Fees to Manager – related party

7,551



3,824



(3,727)



(97)



13,103



11,180



(1,923)



(17)


Depreciation and amortization

487



375



(112)



(30)



958



703



(255)



(36)


Operating loss

(19,419)



(11,950)



(7,469)



(63)



(35,191)



(36,755)



1,564



4


Interest expense, net(1)

(304)



(7,541)



7,237



96



(6,728)



(12,127)



5,399



45


Other income, net

873



235



638



NM



1,729



273



1,456



NM


(Provision) benefit for income taxes

(1,915)



6,629



(8,544)



(129)



3,682



10,886



(7,204)



(66)


Net loss

(20,765)



(12,627)



(8,138)



(64)



(36,508)



(37,723)



1,215



3


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

(20,765)



(12,627)







(36,508)



(37,723)






Interest expense, net(1)

304



7,541







6,728



12,127






Provision (benefit) for income taxes

1,915



(6,629)







(3,682)



(10,886)






Fees to Manager – related party

7,551



3,824







13,103



11,180






Depreciation and amortization

487



375







958



703






Other non-cash expense, net(2)

408



265







1,053



670






EBITDA excluding non-cash items

(10,100)



(7,251)



(2,849)



(39)



(18,348)



(23,929)



5,581



23


















EBITDA excluding non-cash items

(10,100)



(7,251)







(18,348)



(23,929)






Interest expense, net(1)

(304)



(7,541)







(6,728)



(12,127)






Non-cash interest expense, net(1)

133



1,512







4,824



3,017






Benefit (provision) for current income taxes

2,429



(2,068)







5,216



3,812






Changes in working capital

(131,901)



(2,215)







(148,514)



(2,330)






Cash used in operating activities

(139,743)



(17,563)







(163,550)



(31,557)






Changes in working capital

131,901



2,215







148,514



2,330






Free cash flow

(7,842)



(15,348)



7,506



49



(15,036)



(29,227)



14,191



49


____________________

NM — Not meaningful.



(1)

Interest expense, net, includes, non-cash amortization of debt financing fees and non-cash amortization of debt discount related to our 2.00% Convertible Senior Notes. For the quarter and six months ended June 30, 2021, interest expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes and the cancellation of the holding company revolving credit facility in January 2021.



(2)

Other non-cash expense, net, includes primarily non-cash adjustments related to non-cash compensation expense incurred in relation to incentive plans and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

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




For the Quarter Ended June 30, 2021


Atlantic

Aviation


MIC

Hawaii


Corporate

and Other


Total

Continuing

Operations


Discontinued

Operations


Total


($ in Thousands) (Unaudited)

Net income (loss)

24,625



3,073



(20,765)



6,933





6,933


Interest expense, net(1)

10,764



5,664



304



16,732





16,732


Provision for income taxes

9,015



1,318



1,915



12,248





12,248


Depreciation and amortization

23,589



3,840



487



27,916





27,916


Fees to Manager – related party





7,551



7,551





7,551


Other non-cash expense (income), net(2)

2,326



(2,836)



408



(102)





(102)


EBITDA excluding non-cash items

70,319



11,059



(10,100)



71,278





71,278


EBITDA excluding non-cash items

70,319



11,059



(10,100)



71,278





71,278


Interest expense, net(1)

(10,764)



(5,664)



(304)



(16,732)





(16,732)


Non-cash interest expense, net(1)

938



274



133



1,345





1,345


(Provision) benefit for current income taxes

(6,490)



(669)



2,429



(4,730)





(4,730)


Changes in working capital

6,961



(5,760)



(131,901)



(130,700)





(130,700)


Cash provided by (used in) operating activities

60,964



(760)



(139,743)



(79,539)





(79,539)


Changes in working capital

(6,961)



5,760



131,901



130,700





130,700


Maintenance capital expenditures

(4,494)



(1,646)





(6,140)





(6,140)


Free Cash Flow

49,509



3,354



(7,842)



45,021





45,021
















For the Quarter Ended June 30, 2020


Atlantic

Aviation


MIC

Hawaii


Corporate

and Other


Total

Continuing

Operations


Discontinued

Operations


Total


($ in Thousands) (Unaudited)

Net (loss) income

(16,548)



4,746



(12,627)



(24,429)



17,131



(7,298)


Interest expense, net(1)

14,129



1,780



7,541



23,450



9,941



33,391


(Benefit) provision for income taxes

(6,401)



1,772



(6,629)



(11,258)



5,240



(6,018)


Depreciation and amortization

24,865



3,778



375



29,018



33,750



62,768


Fees to Manager – related party





3,824



3,824





3,824


Other non-cash expense (income), net(2)

849



(4,841)



265



(3,727)



1,627



(2,100)


EBITDA excluding non-cash items

16,894



7,235



(7,251)



16,878



67,689



84,567


EBITDA excluding non-cash items

16,894



7,235



(7,251)



16,878



67,689



84,567


Interest expense, net(1)

(14,129)



(1,780)



(7,541)



(23,450)



(9,941)



(33,391)


Non-cash interest expense, net(1)

2,486



188



1,512



4,186



(118)



4,068


Benefit (provision) for current income taxes

8,497



(791)



(2,068)



5,638



(847)



4,791


Changes in working capital

8,050



8,692



(2,215)



14,527



(2,195)



12,332


Cash provided by (used in) operating activities

21,798



13,544



(17,563)



17,779



54,588



72,367


Changes in working capital

(8,050)



(8,692)



2,215



(14,527)



2,195



(12,332)


Maintenance capital expenditures

(2,361)



(1,377)





(3,738)



(12,872)



(16,610)


Free Cash Flow

11,387



3,475



(15,348)



(486)



43,911



43,425




For the Six Months Ended June 30, 2021


Atlantic

Aviation


MIC

Hawaii


Corporate

and Other


Total

Continuing

Operations


Discontinued

Operations


Total


($ in Thousands) (Unaudited)

Net income (loss)

47,766



9,472



(36,508)



20,730





20,730


Interest expense, net(1)

21,494



6,968



6,728



35,190





35,190


Provision (benefit) for income taxes

17,611



3,685



(3,682)



17,614





17,614


Depreciation and amortization

46,889



7,588



958



55,435





55,435


Fees to Manager – related party





13,103



13,103





13,103


Other non-cash expense (income), net(2)

3,895



(3,092)



1,053



1,856





1,856


EBITDA excluding non-cash items

137,655



24,621



(18,348)



143,928





143,928


EBITDA excluding non-cash items

137,655



24,621



(18,348)



143,928





143,928


Interest expense, net(1)

(21,494)



(6,968)



(6,728)



(35,190)





(35,190)


Non-cash interest expense, net(1)

1,881



43



4,824



6,748





6,748


(Provision) benefit for current income taxes

(10,970)



(2,185)



5,216



(7,939)





(7,939)


Changes in working capital

8,877



(7,456)



(148,514)



(147,093)





(147,093)


Cash provided by (used in) operating activities

115,949



8,055



(163,550)



(39,546)





(39,546)


Changes in working capital

(8,877)



7,456



148,514



147,093





147,093


Maintenance capital expenditures

(7,044)



(2,760)





(9,804)





(9,804)


Free Cash Flow

100,028



12,751



(15,036)



97,743





97,743
















For the Six Months Ended June 30, 2020


Atlantic

Aviation


MIC

Hawaii


Corporate

and Other


Total

Continuing

Operations


Discontinued

Operations


Total


($ in Thousands) (Unaudited)

Net (loss) income

(2,360)



8,666



(37,723)



(31,417)



35,346



3,929


Interest expense, net(1)

33,005



4,555



12,127



49,687



25,240



74,927


(Benefit) provision for income taxes

(922)



3,547



(10,886)



(8,261)



11,570



3,309


Depreciation and amortization

51,444



7,402



703



59,549



68,230



127,779


Fees to Manager – related party





11,180



11,180





11,180


Other non-cash expense (income), net(2)

1,662



(1,728)



670



604



4,950



5,554


EBITDA excluding non-cash items

82,829



22,442



(23,929)



81,342



145,336



226,678


EBITDA excluding non-cash items

82,829



22,442



(23,929)



81,342



145,336



226,678


Interest expense, net(1)

(33,005)



(4,555)



(12,127)



(49,687)



(25,240)



(74,927)


Non-cash interest expense, net(1)

7,645



1,191



3,017



11,853



5,412



17,265


(Provision) benefit for current income taxes

(80)



(2,914)



3,812



818



(2,954)



(2,136)


Changes in working capital

23,717



3,606



(2,330)



24,993



(19,278)



5,715


Cash provided by (used in) operating activities

81,106



19,770



(31,557)



69,319



103,276



172,595


Changes in working capital

(23,717)



(3,606)



2,330



(24,993)



19,278



(5,715)


Maintenance capital expenditures

(5,406)



(4,046)





(9,452)



(18,487)



(27,939)


Free Cash Flow

51,983



12,118



(29,227)



34,874



104,067



138,941


____________________________

(1)

Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash amortization of debt discount related to our 2.00% Convertible Senior Notes. For the quarter and six months ended June 30, 2021, interest expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes, the cancellation of the holding company revolving credit facility in January 2021, and the full repayment of the Hawaii Gas $100.0 million senior secured notes. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, the Company paid a $4.7 million ‘make-whole’ payment.



(2)

Other non-cash expense (income), net, includes primarily non-cash mark-to-market adjustment of the value of the commodity hedge contracts, non-cash compensation expense incurred in relation to the incentive plans for senior management of our operating businesses, and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash expense (income), net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

SOURCE Macquarie Infrastructure Corporation

Related Links

http://www.macquarie.com/mic