MIC
4Q20 and FY20 Earnings Conference Call
Supplemental Materials
February 17, 2021
This presentation by Macquarie Infrastructure Corporation (MIC) is proprietary and all rights are reserved. Any reproduction, in whole or in part, without the prior written consent of MIC is prohibited.
This presentation is based on information generally available to the public and does not contain any material, non-public information. The presentation has been prepared solely for informational purposes. It is not a solicitation of any offer to buy or sell any security or instrument.
The presentation is qualified in its entirety by disclosures made in MIC's Form 10-K filed with the SEC on February 17, 2021, and other materials filed with the SEC subsequently.
Forward-Looking Statements
This presentation contains forward-looking statements including regarding the anticipated specific and overall impacts of the COVID-19 pandemic. Forward-looking statements in this presentation are subject to a number of risks and uncertainties, some of which are beyond our control. Our actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. A description of known risks that could cause our actual results to differ appears under the caption "Risk Factors" in our Form 10-K filed with the SEC on February 17, 2021, and other materials filed with the SEC subsequently. Additional risks of which we are not currently aware could also cause our actual results to differ. These forward-looking statements are made as of the date of this presentation. We undertake 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.
With respect to the Company's guidance for EBITDA and Free Cash Flow in 2021, a reconciliation of EBITDA to net income (loss), the most comparable GAAP measure and a reconciliation of Free Cash Flow to cash from operating activities, the most comparable GAAP measure, are not available without unreasonable effort due to the Company's limited visibility into and inability to make accurate projections and estimates of items including management fees, hedging agreements, depreciation and any (benefit) provision for income taxes. These items may vary greatly from year to year and could significantly impact MIC's results as reported in accordance with GAAP.
"Macquarie Group" consists of Macquarie Group Limited and its worldwide subsidiaries and affiliates.
MIC 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. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIC.
Use of Non-GAAP Metrics
In addition to our results under U.S. GAAP, we use certain non-GAAP measures to assess the performance and prospects of our businesses. In particular, we use EBITDA excluding non-cash items and Free Cash Flow.
We define 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 items 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.
We define Free Cash Flow as cash from operating activities - the most comparable GAAP measure - less maintenance capital expenditures and adjusted for changes in working capital.
Please review our Form 10-K and earnings release, filed on February 17, 2021, for a complete discussion of our use of non-GAAP metrics and any of our Form 10-K, earnings release or the appendix to this document for reconciliations of non-GAAP measures to the most comparable GAAP measures.
Important Information for Investors and Stockholders
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
The information included in this communication does not constitute an offer to purchase nor a solicitation of an offer to sell the Company's convertible notes. The Company filed a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission (the "SEC") on February 17, 2021 related to a tender offer for its outstanding convertible notes. The tender offer is being made only pursuant to such Offer to Purchase and other related materials filed with the SEC as part of the Schedule TO, in each case as may be amended or supplemented. The Tender Offer Statement (including an Offer to Purchase and other tender offer documents) contain important information, including the terms and conditions of the tender offer, that should be read carefully before any decision is made with respect to the tender offer. Those materials are available to holders of the Company's convertible notes at no expense upon request directed to the information agent for the tender offer, D.F. King & Co., Inc., by calling (800) 331-7024 (toll-free), (212) 269-5550 (collect) or by email atmacquarie@dfking.com. In addition, all the materials (and all other tender offer documents filed with the SEC) are available at no charge on the SEC's website atwww.sec.gov.
In connection with the merger that is part of the proposed restructuring, Macquarie Infrastructure Holdings LLC ("MIH LLC") filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4 on February 17, 2021 that includes a proxy statement of MIC that also constitutes a preliminary prospectus of MIH LLC. The registration statement has not yet become effective. After the registration statement is declared effective by the SEC, a definitive proxy statement/prospectus will be mailed to stockholders of MIC. INVESTORS AND SECURITY HOLDERS OF MIC ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SECCAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders can obtain free copies of the registration statement and the proxy statement/prospectus and other documents filed with the SEC by MIC and MIH LLC through the website maintained by the SEC atwww.sec.gov. Copies of the documents filed with the SEC by MIC and MIH LLC will also be available free of charge on MIC's website atwww.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
MIC and its directors and executive officers may be considered participants in the solicitation of proxies in connection with the merger. Information about the directors and executive officers of MIC 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, its definitive proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on March 31, 2020, and its Current Report on Form 8-K, which was filed with the SEC on August 21, 2020. Other information regarding the participants of MIC 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/prospectus and other relevant materials to be filed with the SEC regarding the merger when they become available.
MIC - Overview
Following the sale of IMTT in December 2020, MIC comprises two reportable segments
Continuing Operations1:
Atlantic
Aviation
One of the largest networks of fixed base operations (FBOs) providing fuel and other services to general aviation across the U.S.
Discontinued Operations1:
IMTT
Hawaii Gas and other businesses engaged in efforts to reduce the cost and improve the reliability and sustainability of energy in Hawaii
83%
17%
Proportion of 2020 EBITDA2
On November 8, 2020, MIC announced the signing of an agreement to sell IMTT to an entity affiliated with Riverstone Holdings LLC, and the transaction was successfully completed on December 23, 2020
1. During the quarter ended September 30, 2020, IMTT was classified as a discontinued operation and eliminated as a reportable segment. All periods reported herein reflect this change. In December 2020,
MIC completed the IMTT Transaction.
2.
Excludes the expenses incurred at MIC Corporate of $86 million.
Proposed Reorganization
MIC filed a Form S-4 pursuant to which it proposes to reorganize its listed parent company as a pass-through Delaware LLC
Overview: On February 17, 2021, MIC filed a registration statement pursuant to which it proposes to reorganize its listed parent company as a limited liability company ("LLC") taxed as a partnership
Structure Following Proposed Reorganization:
- As a part of the reorganization the entity holding the businesses of MIC Hawaii will be distributed up to the newly formed LLC. The Hawaii Public Utilities Commission approved the distribution in April 2020
- The Company expects to put the matter to a shareholder vote, potentially in late May
- If approved by shareholders, the reorganization is expected to be completed following entry into an agreement by MIC to sell its Atlantic Aviation business but prior to closing of the sale
Tender Offer
MIC launched a tender offer for its 2.00% Convertible Senior Notes due October 2023
Overview:
On February 17, 2021, MIC launched a tender offer for any or all of its 2.00% Convertible Senior Notes ("Convertible Notes") due October 2023
- Current outstanding amount of $402.5 million
- MIC is offering to repurchase the Convertible Notes at face value (par) plus accrued interest through, but not including, the date of purchase
- The Offer will expire on March 16, 2021, unless extended
- Any Convertible Notes not tendered will remain outstanding with no changes to any provisions of the indenture
Results for 4Q20 and FY20
4Q20 and FY20 Results
Results reflect impact of COVID-19 on Atlantic Aviation and MIC Hawaii as well as taxes and expenses associated with the sale of IMTT in December 2020
Selected Results:
Consolidated
▲ 3%
Net (Loss) Income - Continuing Operations decreased reflecting a reduction in revenue generated by the Company's remaining operating businesses as a result of lower activity levels, a current federal income tax liability of $126 million related to the capital gain generated by the sale of IMTT in December 2020, and transaction and other costs incurred primarily in connection with the sale
Adjusted EBITDA ex Non-Cash Items - Continuing Operations1 decreased primarily as a result of the lower operating income in 2020
Cash provided by (used in) Operating Activities - Continuing Operations decreased primarily reflecting lower Adjusted EBITDA excluding non-cash items, a federal income tax liability recorded and paid in 2019, and movements in accounts receivable principally at Atlantic Aviation
Adjusted Free Cash Flow - Continuing Operations1,2 decreased reflecting the Company's lower Adjusted EBITDA excluding non-cash items partially offset by lower interest expense and maintenance capital expenditures
NM - Not meaningful
1. Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow excludes costs relating to certain investment and acquisition/disposition activities.
2. Excludes the current federal income tax liability of $126 million related to the taxable gain on the IMTT Transaction in 2020 expected to be paid in April 2021.
$ millions | 4Q20 | 4Q19 | % | FY20 | FY19 | % |
Net (Loss) Income - Continuing Operations | (16) | 5 | NM | (206) | 25 | NM |
Adjusted EBITDA ex Non-Cash Items - Continuing Operations1 | 66 | 78 | ▼ 15% | 220 | 316 | ▼ 30% |
Cash provided by (used in) Operating Activities - Continuing Operations | 13 | (5) | NM | 127 | 215 | ▼ 41% |
Adjusted Free Cash Flow - Continuing Operations1,2 | 40 | 39 | 125 | 213 | ▼ 41% | |
FY20 vs FY19 Commentary: |
FY20 Adjusted Free Cash Flow
Decline reflects lower Adjusted EBITDA excluding non-cash items, partially offset by lower interest expense and maintenance capital expenditures
Adjusted Free Cash Flow1:
340
320
183
308
Decline in Adjusted Free
300
Cash Flow - Continuing Operations1 reflects:
280
260
240
220
200
$millions
180
- Decreased contribution from Atlantic Aviation and MIC Hawaii, partially offset by increased contribution from Corporate1
160
- Lower interest expense
140
- Lower maintenance
120
100
80
60
40
capital expenditures Weighted average shares outstanding increased to 87.0 million in FY20 from 86.2 million in FY19
20
0
FY19
FY20
FY20
1.
Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow excludes costs relating to certain investment and acquisition/disposition activities.
2. Excludes the current federal income tax liability of $126 million related to the taxable gain on the IMTT Transaction in 2020 expected to be paid in April 2021.
Atlantic Aviation Overview
Exposure to GDP-linked general aviation flight activity as well as growing need for associated infrastructure supported by large, well-diversified footprint with presence in 45 of the top 150 U.S. general aviation markets
Business Highlights:
Diversified Geographic and Industry Footprint:
#2
69
Largest FBO Provider in the U.S.
U.S. FBOs
25+ years
~20 years
Avg. Experience Among Senior Management
Weighted Average Lease Life1
9.9%
2010-2019 EBITDA CAGR
Diversified Gross Margin Generation:
Aircraft Fueling
Rent
Facilities & Services
Other ServicesAircraft Deicing
Reflects gallons sold, linked to flight activity, and margin per gallon
Long-term and overnight space for tenant and transient customersAccess to ramp space and FBO terminals as well as variety of services delivered
Additional services such as lavatory cleaning, ground handling of cargo, commissions for 3rd party catering/rental cars/hotels, etc.
~27% of 2019 Gross Margin
1. As of December 31, 2020, weighted based on 2019 EBITDA contribution.
2. Metropolitan Statistical Areas contain at least one urbanized area of 50,000 or more population.
3. Micropolitan Statistical Areas contain at least one urban cluster of at least 10,000 and less than 50,000 population.
~60% of
2019 Gross MarginSeasonal revenue item
~13% of
2019 Gross Margin
4Q20 Regional FAA Activity
Atlantic Aviation has seen continued year-over-year outperformance in the Inter-mountain West and Florida regions; business-oriented locations near city-centers have seen some recovery but generally continue to lag the portfolio
Year-Over-Year General Aviation Activity:
• The outbreak of COVID-19 resulted in a decline in general aviation flight activity of approximately 80% year-over-year in April 2020 - Flight activity rebounded to down 18% in 4Q20 and down 15% in December 2020 at airports on which Atlantic Aviation operates, supported by the holiday period
Up > 10%(10%) to 10%
(30%) to (10%)Down > (30%)
• The successful rollout of COVID-19 vaccines, both domestically and internationally, is expected to result in a further recovery of general aviation flight activity in 2021 to levels comparable with 2019 activity by year end - The most significant impact is expected to be on locations dominated by business activity historically
1. Heat map shows approximate 4Q20 year-over-year performance of U.S. domestic general aviation flight activity at airports on which Atlantic Aviation operates.
No substantial near-term maturities1
As of February 12, 20211,2:
1,200
1,000
800
600
400
200
-
2021
2022
2023 | 2024 | 2025 |
MIC Corporate | Atlantic Aviation | MIC Hawaii |
1. On February 17, 2021, a tender offer was launched for MIC Corporate's 2.00% Convertible Senior Notes due October 2023. Refer to slide 6 for further details.
2.
Does not reflect the scheduled amortization of these facilities.
2026
2027
Debt Profile
MIC's aggregate leverage ratio was 4.0 times net debt/Adjusted EBITDA excluding non-cash items on December 31, 2020
MIC rated B+
Debt Metrics as of February 12, 2021:
1. Reflects annualized interest rate on all facilities including interest rate hedges.
2. The weighted average remaining life does not reflect the scheduled amortization on these facilities.
3. MIC Hawaii also has a $60 million revolving credit facility that was undrawn. The revolving credit facility floats at LIBOR plus 1.25% and matures in February 2023.
All drawings on MIC's holding company revolving credit facility were fully repaid as of December 31, 2020; the facility was then terminated following the sale of IMTT
Weighted Average | Balance | Weighted | ||
Remaining Life | Outstanding | Average | ||
Business | Debt | (Years) | ($ millions) | Rate1 |
MIC Corporate | Convertible Senior Notes | 2.6 | 403 | 2.00% |
Atlantic Aviation | Term Loan2 | 4.8 | 1,005 | 4.21% |
MIC Hawaii3 | Term Loan2 | 2.5 | 94 | 1.87% |
Senior Notes | 1.5 | 100 | 4.22% | |
Total | 3.9 | 1,602 | 3.52% | |
PAGE 13 |
Initiation of Guidance for 2021
2021E Financial Metrics - Continuing Operations:
$ millions
2021E
Adjusted EBITDA ex Non-cash Items1
230 - 260
Guidance for Continuing Operations assumes:
Atlantic Aviation
220 - 240
MIC Hawaii
30 - 40
- A successful rollout and expected efficacy of COVID-19 vaccine programs in the U.S. and internationally; does not contemplate a return to activity levels seen in 2Q20
Corporate and Other1
(20)
- Recovery in general aviation flight activity expected to accelerate starting in 3Q21, reaching 2019 levels by the end of 2021
Free Cash Flow
130 - 160
Growth Capital Expenditures
70 - 80
- Gas sales to be in line with 2020; expect an increase in the number of visitors to Hawaii throughout 2021, however number of visitors are not expected to reach pre-COVID levels in 2021
- Growth capital deployment focused primarily on Atlantic Aviation including projects currently underway such as the development of additional hangar capacity and related infrastructure at various FBOs in the Atlantic Aviation network
1. Adjusted EBITDA excluding non-cash items excludes costs relating to certain investment and acquisition/disposition activities during 2021E.
Appendices
Quarter Ended December 31,Change Favorable / (Unfavorable)
Year Ended December 31,Change Favorable / (Unfavorable)
($ in Millions, Except Share and Per Share Data) (Unaudited) | 2020 | |||||||
GAAP Metrics | ||||||||
Continuing Operations | ||||||||
Net (loss) income | (16) | 5 | (21) | NM | (206) | 25 | (231) | NM |
Net (loss) income per share attributable to MIC | (0.18) | 0.06 | (0.24) | NM | (2.36) | 0.31 | (2.67) | NM |
Cash provided by (used in) operating activities | 13 | (5) | 18 | NM | 127 | 215 | (88) | (41) |
Discontinued Operations | ||||||||
Net (loss) income | (22) | 9 | (31) | NM | (722) | 128 | (850) | NM |
Net (loss) income per share attributable to MIC | (0.26) | 0.10 | (0.36) | NM | (8.31) | 1.51 | (9.82) | NM |
Cash provided by operating activities | 46 | 66 | (20) | (30) | 214 | 205 | 9 | 4 |
Weighted average number of shares outstanding: basic | 87,209,829 | 86,483,313 | 726,516 | 1 | 86,951,642 | 86,178,212 | 773,430 | 1 |
MIC Non-GAAP Metrics | ||||||||
EBITDA excluding non-cash items - continuing operations | 12 | 74 | (62) | (84) | 150 | 311 | (161) | (52) |
Investment and acquisition/disposition costs(1) | 54 | 4 | 50 | NM | 70 | 5 | 65 | NM |
Adjusted EBITDA excluding non-cash items - continuing operations | 66 | 78 | (12) | (15) | 220 | 316 | (96) | (30) |
Cash interest | (14) | (17) | 3 | 18 | (69) | (74) | 5 | 7 |
Cash taxes(2) | (4) | (12) | 8 | 67 | (6) | (6) | - | - |
Maintenance capital expenditures | (8) | (10) | 2 | 20 | (20) | (23) | 3 | 13 |
Adjusted Free Cash Flow - continuing operations | 40 | 39 | 1 | 3 | 125 | 213 | (88) | (41) |
EBITDA excluding non-cash items - discontinued operations | 64 | 57 | 7 | 12 | 276 | 308 | (32) | (10) |
Cash interest | (10) | (10) | - | - | (40) | (48) | 8 | 17 |
Cash taxes | (1) | 23 | (24) | (104) | (3) | (48) | 45 | 94 |
Maintenance capital expenditures | (19) | (18) | (1) | (6) | (50) | (46) | (4) | (9) |
Free Cash Flow - discontinued operations | 34 | 52 | (18) | (35) | 183 | 166 | 17 | 10 |
Adjusted Free Cash Flow - consolidated | 74 | 91 | (17) | (19) | 308 | 379 | (71) | (19) |
NM - Not meaningful |
2020
2019
$
%
2019
$
%
1. Adjusted for investment and acquisition/disposition costs. In connection with the IMTT sale in December 2020, the Company recognized $56 million in transaction costs, including a Disposition Payment of $28 million to its Manager.
2. Adjusted for current federal income tax liability of $126 million related to the taxable gain on the sale of IMTT in December 2020 expected to be paid in April 2021.
($ in Millions) (Unaudited)
Atlantic AviationMIC HawaiiCorporate and
OtherTotal Continuing Operations
Discontinued Operations
Total
Net income (loss) Interest expense, net(1)
18
3
(37)
11
1
5
Provision (benefit) for income taxes Depreciation and amortization Fees to Manager-related party Other non-cash expense, net(2)
6
2
(32)
(16) 17 (24)
(22) (38)
9 26
7 (17)
23 - - 58
4 -
1
28 - 28
2 12
5 -
5 - 5
2 70 72
12 64 76
EBITDA excluding non-cash items(3)
Interest expense, net(1)
58 (11)
12 (1)
Non-cash interest expense (income), net(1)
Provision for current income taxes(4)
Changes in working capital(4)
Cash provided by (used in) operating activities Changes in working capital(4)
Maintenance capital expenditures Free Cash Flow
2 (2) (4) 43 4 (6) 41
- - (4) 7 4 (2) 9
(58) (5) 1 (128) 153 (37)
12 64 76
(17) (9) (26)
3 (1) 2
(130) (1) (131)
145 (7) 138
13 46 59
(153)
(145) 7 (138)
- (190)
(8) (140)
(19) (27)
34 (106)
1. Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees, and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes
due October 2023.
2. Other non-cash expense, net, primarily includes pension expense, 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. Pension expense primarily consists of interest cost, expected return on plan assets, and amortization of actuarial and performance gains and losses. 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" in MIC's Form 10-K for further discussions.
3. Includes transaction costs of $28 million and a Disposition Payment of $28 million to our Manager in connection with the IMTT Transaction in 2020 (currently in escrow).
4. Includes the current federal income tax liability of $126 million related to the taxable gain on the IMTT Transaction in 2020 expected to be paid in April 2021.
EBITDA excluding non-cash items(3)
(58)
($ in Millions) (Unaudited)
Atlantic AviationMIC HawaiiCorporate and
OtherTotal Continuing Operations
Discontinued Operations
Total
1. Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees, and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes
due October 2023.
2. Other non-cash expense, net, primarily includes pension expense, 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. Pension expense primarily consists of interest cost, expected return on plan assets, and amortization of actuarial and performance gains and losses. 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" in MIC's Form 10-K for further discussions.
3. Reflects current federal income taxes paid primarily related to the taxable gain on the sale of the renewable businesses in 2019.
Net income (loss) | 21 | 2 | (18) | 5 | 9 | 14 |
Interest expense, net(1) | 15 | 2 | 3 | 20 | 9 | 29 |
Provision (benefit) for income taxes | 6 | 4 | (6) | 4 | 3 | 7 |
Depreciation and amortization | 27 | 4 | - | 31 | 34 | 65 |
Fees to Manager-related party | - | - | 9 | 9 | - | 9 |
Other non-cash expense, net(2) | 2 | 2 | 1 | 5 | 2 | 7 |
EBITDA excluding non-cash items | 71 | 14 | (11) | 74 | 57 | 131 |
EBITDA excluding non-cash items | 71 | 14 | (11) | 74 | 57 | 131 |
Interest expense, net(1) | (15) | (2) | (3) | (20) | (9) | (29) |
Non-cash interest expense (income), net(1) | 1 | - | 2 | 3 | (1) | 2 |
(Provision) benefit for current income taxes | (8) | - | (4) | (12) | 23 | 11 |
Changes in working capital(3) | 7 | 5 | (62) | (50) | (4) | (54) |
Cash provided by (used in) operating activities | 56 | 17 | (78) | (5) | 66 | 61 |
Changes in working capital(3) | (7) | (5) | 62 | 50 | 4 | 54 |
Maintenance capital expenditures | (8) | (2) | - | (10) | (18) | (28) |
Free Cash Flow | 41 | 10 | (16) | 35 | 52 | 87 |
($ in Millions) (Unaudited)
Atlantic AviationMIC HawaiiCorporate and
OtherTotal Continuing Operations
Discontinued Operations
Total
Net income (loss) Interest expense, net(1) Provision for income taxes Impairment(2)
28
12
(246)
(206)
(722) (928)
55
8
23
86
43 129
11 -
6 -
110 -
127 -
23 150
750 750
Depreciation and amortization Fees to Manager-related party
99 -
16 -
1
116
102 218
21
21 - 21
Other non-cash expense (income), net(3)
2 195
(1) 41
5 (86)
6 80 86
150 276 426
EBITDA excluding non-cash items(4)
Interest expense, net(1)
Non-cash interest expense, net(1)
Provision for current income taxes(5)
Changes in working capital(5)
Cash provided by (used in) operating activities Changes in working capital(5)
Maintenance capital expenditures Free Cash Flow
195 (55) 10 (5) 27 172 (27) (13) 132
41 (8) 1 (3) - 31 - (7) 24
(86) (23)
150 276 426
(86)
(43) (129)
6 (124) 151 (76)
17
3 20
(132)
(3) (135)
178
(19) 159
214 341
(151)
(178)
19 (159)
- (227)
(20)
(50) (70)
183 112
1. Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees, and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023.
2. As part of classifying IMTT as held for sale, the Company recognized an impairment of the IMTT disposal group of $750 million, which includes a goodwill impairment of $725 million reported in discontinued
operations, for the quarter ended September 30, 2020.
3. Other non-cash expense (income), net, primarily includes pension expense, 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. Pension expense primarily consists of interest cost, expected return on plan assets, and amortization of actuarial and performance gains and losses. 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" in MIC's Form 10-K for further discussions.
4. Includes transaction costs of $28 million and a Disposition Payment of $28 million to our Manager in connection with the IMTT Transaction in 2020 (currently in escrow).
5. Includes the current federal income tax liability of $126 million related to the taxable gain on the IMTT Transaction in 2020 expected to be paid in April 2021.
For the Year Ended December 31, 2020
EBITDA excluding non-cash items(4)
127
(71)
($ in Millions) (Unaudited)
Atlantic AviationMIC HawaiiCorporate and
OtherTotal Continuing Operations
Discontinued Operations
Total
Net income (loss) Interest expense, net(1)
69
13
(57)
25
128 153
74
10
16
100
60 160
Provision (benefit) for income taxes Depreciation and amortization Fees to Manager-related party
24
9
(18)
15
57 72
106 -
16 -
-
122
132 254
32
32
- 32
Other non-cash expense (income), net(2)
3 276
12 60
2 (25)
17
(69) (52)
308 619
EBITDA excluding non-cash items Interest expense, net(1)
Non-cash interest expense, net(1) (Provision) benefit for current income taxes Changes in working capital(3)
Cash provided by (used in) operating activities Changes in working capital(3)
Maintenance capital expenditures Free Cash Flow
276 (74) 16 (22) 13 209 (13) (16) 180
60 (10)
(25) (16)
311
308 619
(100)
(60) (160)
2 (4) 8 56 (8) (7) 41
8 20 (37)
26
12 38
(6)
(48) (54)
(16)
(7) (23)
(50) 37 - (13)
205 420
16
7 23
(23)
(46) (69)
166 374
1. Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees, and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes
due October 2023.
2. Other non-cash expense (income), net, primarily includes pension expense, 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. Pension expense primarily consists of interest cost, expected return on plan assets, and amortization of actuarial and performance gains and losses. 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" in MIC's Form 10-K for further discussions.
3. Reflects current federal income taxes paid primarily related to the taxable gain on the sale of the renewable businesses in 2019.
For the Year Ended December 31, 2019
EBITDA excluding non-cash items
311
215
208
Attachments
- Original document
- Permalink
Disclaimer
Macquarie Infrastructure Corporation published this content on 17 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2021 18:41:03 UTC.