Market Overview

MIC Reports Second Quarter 2018 Financial Results, Cash Dividend Of $1.00 Per Share

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MIC Reports Second Quarter 2018 Financial Results, Cash Dividend Of $1.00 Per Share

- Financial Performance for the Quarter in Line with Expectations:

-- Net income of $36.3 million, up 39.4%

-- Adjusted Proportionately Combined EBITDA excluding non-cash items of $170.8 million

-- Cash provided by operating activities of $121.9 million

-- Adjusted Free Cash Flow of $126.6 million

- Progress on Strategic Priorities:

-- Agreement to sell 100% of Bayonne Energy Center ("BEC") for $900 million announced July 29, 2018

-- Repurposing: Contracting of 370,000 barrels of cleaned tank capacity at IMTT

-- Repositioning: Agreement for construction of approximately 200,000 barrels of new chemical capacity at IMTT

PR Newswire

NEW YORK, Aug. 1, 2018 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE:MIC) reported its financial results for the second quarter of 2018 in line with expectations.

Net income increased 39.4% to $36.3 million from $26.0 million in the second quarter of 2017 (the prior comparable period) on unrealized gains on derivative instruments (versus losses in 2017), a reduction in management fees and lower taxes.

Adjusted Proportionately Combined EBITDA excluding non-cash items of $170.8 million was down 2.9% versus the prior comparable period reflecting primarily a reduced contribution from IMTT, as forecast.

Cash generated by operating activities was flat with the prior comparable period at $121.9 million, with higher interest and tax expenses offset by favorable movements in working capital.

Adjusted Free Cash Flow, which excludes certain one-time items including transaction related costs, was $126.6 million, down 10.3% from $141.1 million in the prior comparable period on increased interest expense, taxes and maintenance capital expenditures.

The MIC board of directors authorized a cash dividend of $1.00 per share, or $4.00 annualized, for the second quarter of 2018. The dividend will be payable on August 16, 2018 to shareholders of record on August 13, 2018. The Company reaffirmed its previous guidance for a distribution of $1.00 per share in each quarter of 2018.

Christopher Frost, MIC chief executive officer, said: "We are pleased with the progress on our strategic priorities, particularly the sale of BEC and momentum in repurposing and repositioning initiatives at IMTT. MIC's financial results for the second quarter continue to demonstrate the underlying strength and resilience of our businesses." 

"MIC's financial and operational performance was consistent with our guidance for the year and supported the authorization of a dividend of $1.00 per share. We remain confident in the sustainability of our dividend at the current level and the prospect of dividend growth over the medium term," added Frost.

Second Quarter Segment Results 

  • IMTT generated EBITDA of $74.0 million, a decrease of 10% on the prior comparable period, primarily due to the deferred revenue recognized in connection with the cancellation of a construction project in June of 2017 and the forecasted temporary decline in capacity utilization. Consistent with prior guidance, storage utilization declined to 86.1% in the quarter compared with 94.0% in the prior comparable period. MIC expects utilization to decline to the low 80s percent range before recovering to the low 90s percent range in 2020, subject to market conditions.

  • Atlantic Aviation generated EBITDA of $60.3 million, an increase of 5.1% over the prior comparable period, driven by growth in general aviation flight activity and contributions from acquired fixed base operations.

  • Contracted Power generated EBITDA of $33.1 million, up 20.1% on the prior comparable period, on fees received from a developer of renewable power projects, improved wind resources and increased tariff-based revenue from the thermal power generation facility.

  • MIC Hawaii generated EBITDA of $11.5 million, down 21.4% on the prior comparable period, primarily driven by higher expenses related to the Company's design-build mechanical contractor and the Hawaii Gas rate case. A portion of the increased costs at Hawaii Gas are expected to be recovered in rates that were approved by the Hawaii Public Utilities Commission in an Interim Decision and Order issued on June 27, 2018. The new rates were implemented on July 1, 2018. MIC expects an increase in regulated revenue at Hawaii Gas of approximately $8.9 million per year.

Strategic Initiatives

Sale of Bayonne Energy Center (BEC)

On July 29, 2018 MIC announced that it had entered into an agreement to sell 100% of BEC to NHIP II Bayonne Holdings LLC for $900 million in cash and assumed debt. Closing of the transaction is subject to receipt of customary approvals from the New York Public Service Commission and the Federal Energy Regulatory Commission, among others, and is expected to occur in the fourth quarter of 2018.

The debt balance outstanding at BEC at closing is expected to be $243.5 million. MIC anticipates using part of the net proceeds of approximately $650 million, after transaction fees and expenses, to reduce debt including $150 million outstanding on the revolving credit facility at the Company's IMTT business. MIC expects its ratio of net debt to EBITDA to be less than 4.5 times at year end 2018.

Proceeds not used to reduce debt will be available to fund a portion of MIC's planned growth capital deployments. The MIC Board will consider options for returning any excess capital to shareholders.

MIC expects the taxable gain from the sale of BEC to utilize the majority of its federal prior year Net Operating Loss carry-forward although the Company expects to be able to offset future federal taxable income with the tax benefits associated with capital deployments.

IMTT Repurposing and Repositioning

As previously announced, MIC is undertaking initiatives related to the repurposing of certain IMTT storage assets and repositioning portions of the business in response to shifts in global demand and trade flows impacting IMTT.

  • Repurposing Existing Capacity


    IMTT anticipates repurposing up to three million barrels of storage capacity on the Lower Mississippi River away from primarily heavy and residual oils to gasoline and distillates, chemicals and vegetable and/or tropical oils. Capacity utilization at IMTT is expected to average in the mid-80s percent range in 2018 and to increase to the low 90s percent range in 2020, both subject to market conditions. Capacity utilization averaged 86.1% during the second quarter and 84.8% during June.


    Approximately 1.3 million barrels of IMTT storage capacity is currently being repurposed. Of that, 500,000 barrels were contracted in the second quarter and an additional 370,000 barrels were contracted in the third quarter. IMTT expects to invest approximately $15 million in the repurposing of storage capacity in 2018 and had deployed approximately $2.8 million through June.

  • Repositioning, Creating Additional Capacity and Capability


    IMTT expects to deploy an additional approximately $15 million in 2018 on projects that will develop new storage capacity and/or improve terminal (primarily pipeline) connectivity. In July, repositioning activities included the negotiation and signing of an agreement with a chemicals manufacturer for the construction of approximately 200,000 barrels of new capacity and related eight year storage contract. The project is expected to be completed in late 2019 and require an investment of approximately $20.0 million.

Portfolio and Capital Management

In its results release for the first quarter of 2018 MIC noted that it expected to deploy approximately $300 million during the year on a combination of growth projects and "bolt-on" acquisitions and to exit certain smaller, non-core businesses. To date, the Company has deployed, or committed to deploy, approximately $200 million including in the acquisition (on-field consolidation) of a fixed base operation by Atlantic Aviation in January 2018, the completion of the development of additional power generating capacity prior to the sale of BEC and the development of additional capacity and capability at IMTT.

Including a previously announced sale of IMTT subsidiary OMI Environmental Solutions, Inc., through June 30, 2018, MIC has exited businesses and terminated projects that have generated an aggregate approximately $40 million of cash proceeds.

Segment EBITDA Guidance

MIC adjusted its prior guidance for the generation of EBITDA in 2018 to reflect primarily the expected early fourth quarter closing of the sale of BEC. As a result, the expected contribution from Contracted Power has been reduced by $10 to $15 million to a range of $80 to $90 million. The Company also increased its estimate of expenses incurred in its Corporate/Other segment by $5 million to reflect the expected higher cost of advisory services incurred in connection with addressing shareholder matters.

 

IMTT:

$285 – $295 million

Atlantic Aviation:

$265 – $275 million

Contracted Power:

$80 – $90 million

MIC Hawaii:

$60 – $65 million

Corporate/Other:

$(20) – $(20) million

 

 

Summary Financial Information





Quarter Ended
June 30,


Change 
Favorable/
(Unfavorable)


Six Months Ended
June 30,




Change
Favorable/
(Unfavorable)




2018



2017



$


%



2018



2017




$


%



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

GAAP Metrics
























Net income


$

36,279


$

26,025



10,254


39.4


$

83,074


$

58,663




24,411


41.6

Weighted average number of shares outstanding: basic



85,082,209



82,430,324



2,651,885


3.2



84,952,551



82,285,053




2,667,498


3.2

Net income per share attributable to MIC


$

0.45


$

0.32



0.13


40.6


$

1.36


$

0.75




0.61


81.3

Cash provided by operating activities(1)



121,900



121,043



857


0.7



266,002



248,637




17,365


7.0

























MIC Non-GAAP Metrics
























EBITDA excluding non-cash items(2)


$

168,935


$

170,924



(1,989)


(1.2)


$

349,854


$

351,239




(1,385)


(0.4)

Shared service implementation costs(3)



-



3,091



(3,091)


(100.0)



-



5,445




(5,445)


(100.0)

Investment and acquisition/disposition costs(3)



4,651



4,850



(199)


(4.1)



5,595



4,850




745


15.4

Adjusted EBITDA excluding non-cash items(3)


$

173,586


$

178,865



(5,279)


(3.0)


$

355,449


$

361,534




(6,085)


(1.7)

























Cash interest(4)


$

(31,789)


$

(26,410)



(5,379)


(20.4)


$

(61,602)


$

(52,284)




(9,318)


(17.8)

Cash taxes 



(3,712)



(2,618)



(1,094)


(41.8)



(7,583)



(6,339)




(1,244)


(19.6)

Maintenance capital expenditures



(9,490)



(6,480)



(3,010)


(46.5)



(19,352)



(10,956)




(8,396)


(76.6)

Noncontrolling interest(5)



(1,948)



(2,244)



296


13.2



(4,379)



(3,915)




(464)


(11.9)

Adjusted Free Cash Flow(3)


$

126,647


$

141,113



(14,466)


(10.3)


$

262,533


$

288,040




(25,507)


(8.9)

























__________________
























(1) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, ''Basis of Presentation'', in our Notes to Consolidated
      Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2018.

(2) EBITDA excluding non-cash items is calculated as net income before interest expense, taxes, depreciation and amortization expense, management fees, pension expense and other non-cash (income) expense
      recorded in the consolidated statement of operations. See below for reconciliation of net income (loss) to EBITDA excluding non-cash items.

(3) For 2018 and 2017, Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow excludes costs relating to certain investment and acquisition/disposition activities. Adjusted EBITDA excluding non-cash items and Adjusted Free Cash Flow for 2017 also excludes implementation costs relating to our shared services center.

(4) Cash interest is calculated as interest expense, net, excluding the impact of non-cash adjustments for unrealized (gains) losses from derivative instruments, amortization of deferred financing costs and the
      amortization of debt discount recorded in the consolidated statement of operations.

(5) Noncontrolling interest adjustment represents the portion of Free Cash Flow not attributable to MIC's ownership interest.

 

Conference Call and Webcast

When: MIC has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, August 2, 2018 during which management will review and comment on the second quarter 2018 results.

How: To listen to the conference call dial +1(650) 521-5252 or +1(877) 852-2928 at least 10 minutes prior to the scheduled start time. A webcast of the call will be accessible via the Company's website at www.macquarie.com/mic. Allow extra time prior to the call to visit the site and download the software needed to listen to the webcast.

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

Replay: For interested individuals unable to participate in the live conference call, a replay will be available after 2:00 p.m. on August 2, 2018 through midnight on August 8, 2018, at +1(404) 537-3406 or +1(855) 859-2056, Passcode: 7635099. An online archive of the webcast will be available on the Company's website for one year following the call.

About MIC

MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals; an airport services business, Atlantic Aviation; entities comprising an energy services, production and distribution segment, MIC Hawaii; and entities comprising a Contracted Power segment. For additional information, please visit the MIC website at www.macquarie.com/mic. MIC-G

Use of Non-GAAP Measures

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

In addition to MIC's results under U.S. GAAP, the Company uses certain non-GAAP measures to assess the performance and prospects of its businesses. In particular, MIC uses EBITDA excluding non-cash items, Free Cash Flow and certain proportionately combined financial metrics. Proportionately combined financial metrics, including Free Cash Flow, reflect MIC's proportionate interest in its wind and solar facilities.

MIC measures EBITDA excluding non-cash items as a reflection of its businesses' ability to effectively manage the volume of products sold or services provided, the operating margin earned on those transactions and the management of operating expenses independent of the capitalization and tax attributes of those businesses. The Company believes investors use EBITDA excluding non-cash items primarily as a measure to assess the operating performance of its businesses and to make comparisons with the operating performance of other businesses whose depreciation and amortization expense may vary widely from MIC's, particularly where acquisitions and other non-operating factors are involved. MIC defines EBITDA excluding non-cash items as net income (loss) or earnings —the most comparable GAAP measure— before interest, taxes, depreciation and amortization and non-cash items including impairments, unrealized derivative gains and losses, adjustments for other non-cash items and pension expense reflected in the statements of operations. EBITDA excluding non-cash items also excludes base management fees and performance fees, if any, whether paid in cash or stock.

Given MIC's varied ownership levels in its 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 interest, tax payments and pension contributions, less maintenance capital expenditures, which includes principal repayments on capital lease obligations used to fund maintenance capital expenditures, and excludes changes in working capital.

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

In its 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 tables below for a reconciliation of EBITDA excluding non-cash items and EBITDA excluding non-cash items, to Net Income (loss) and a reconciliation of Free Cash Flow to cash from operating activities.

Classification of Maintenance Capital Expenditures and Growth Capital Expenditures

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

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

Forward-Looking Statements

This press release contains forward-looking statements. MIC may, in some cases, use words such as "project", "believe", "anticipate", "plan", "expect", "estimate", "intend", "should", "would", "could", "potentially", or "may" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC's control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, 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 associated with acquisitions or dispositions, litigation risks; 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.MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION










CONSOLIDATED CONDENSED BALANCE SHEETS

 ($ in Thousands, Except Share Data)












June 30,


December 31,




2018


2017




(Unaudited)





ASSETS








Current assets:








Cash and cash equivalents


$

53,976


$

47,121


Restricted cash



27,509



24,963


Accounts receivable, less allowance for doubtful accounts








of $1,143 and $895, respectively



128,629



158,152


Inventories



31,495



36,955


Prepaid expenses



10,073



14,685


Fair value of derivative instruments



15,893



11,965


Other current assets



14,261



13,804


Assets held for sale(1)



951,982



-


Total current assets



1,233,818



307,645


Property, equipment, land and leasehold improvements, net



3,760,023



4,659,614


Investment in unconsolidated business 



9,073



9,526


Goodwill



2,046,896



2,068,668


Intangible assets, net



833,325



914,098


Fair value of derivative instruments



26,652



24,455


Other noncurrent assets



26,527



24,945


Total assets


$

7,936,314


$

8,008,951










LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:








Due to Manager - related party


$

7,435


$

5,577


Accounts payable



42,187



60,585


Accrued expenses



71,293



89,496


Current portion of long-term debt



42,676



50,835


Fair value of derivative instruments



730



1,710


Other current liabilities



39,709



47,762


Liabilities held for sale(1)



307,149



-


Total current liabilities



511,179



255,965


Long-term debt, net of current portion



3,342,260



3,530,311


Deferred income taxes



651,080



632,070


Fair value of derivative instruments



1,705



4,668


Tolling agreements - noncurrent



-



52,595


Other noncurrent liabilities



186,020



182,639


Total liabilities



4,692,244



4,658,248


Commitments and contingencies



-



-


Stockholders' equity (2):








Common stock ($0.001 par value; 500,000,000 authorized; 85,186,385 shares 
     issued and outstanding at June 30, 2018 and 84,733,957 shares issued and 
     outstanding at December 31, 2017)


$

85


$

85


Additional paid in capital



1,655,367



1,840,033


Accumulated other comprehensive loss



(33,466)



(29,993)


Retained earnings



1,458,767



1,343,567


Total stockholders' equity



3,080,753



3,153,692


Noncontrolling interests



163,317



197,011


Total equity



3,244,070



3,350,703


Total liabilities and equity


$

7,936,314


$

8,008,951


_________________








(1)  See Note 2, ''Basis of Presentation'', in our Notes to Consolidated Condensed Financial Statements in Part 1 of Form 10-Q for the quarter ended June 30, 2018, for further discussion on assets and liabilities held for sale.

(2)  The Company is authorized to issue 100,000,000 shares of preferred stock, par value $0.001 per share. At June 30, 2018 and December 31, 2017, no preferred stock were issued or outstanding. The Company had 100 shares of special stock issued and outstanding to its Manager at June 30, 2018 and December 31, 2017.

 

 

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,





2018



2017



2018



2017


Revenue














Service revenue


$

375,997


$

345,045


$

778,606


$

708,849


Product revenue



102,083



93,945



201,030



181,598


Total revenue



478,080



438,990



979,636



890,447


Costs and expenses














Cost of services



179,725



147,114



367,195



301,820


Cost of product sales



47,164



40,249



100,549



87,474


Selling, general and administrative



88,927



82,967



175,884



159,919


Fees to Manager - related party



10,852



18,433



23,780



36,656


Depreciation



61,086



57,063



122,444



114,744


Amortization of intangibles



18,224



15,898



35,440



33,591


Total operating expenses 



405,978



361,724



825,292



734,204


Operating income



72,102



77,266



154,344



156,243


Other income (expense)














Interest income



111



41



191



75


Interest expense(1)



(30,287)



(35,356)



(49,077)



(60,838)


Other income, net



6,248



1,738



6,290



2,920


Net income before income taxes



48,174



43,689



111,748



98,400


Provision for income taxes



(11,895)



(17,664)



(28,674)



(39,737)


Net income 


$

36,279


$

26,025


$

83,074


$

58,663


Less: net (loss) income attributable to 
     noncontrolling interests


(2,087)



5



(32,126)



(3,372)


Net income attributable to MIC


$

38,366


$

26,020


$

115,200


$

62,035
















Basic income per share attributable to MIC

$

0.45


$

0.32


$

1.36


$

0.75


Weighted average number of shares outstanding: 
     basic 


85,082,209



82,430,324



84,952,551



82,285,053
















Diluted income per share attributable to MIC 

$

0.45


$

0.32


$

1.34


$

0.75


Weighted average number of shares outstanding:

     diluted


85,091,945



82,439,840



89,316,951



82,294,608


Cash dividends declared per share


$

1.00


$

1.38


$

2.00


$

2.70
















(1) Interest expense includes gains on derivative instruments of $5.9 million and $21.0 million for the quarter and six months ended June 30, 2018, respectively. For the quarter and six months ended June 30, 2017, interest expense includes losses on derivative instruments of $7.7 million and $6.8 million, respectively.

 

 

MACQUARIE INFRASTRUCTURE CORPORATION










CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

($ in Thousands)












Six Months Ended
 June 30,




2018




2017(1)











Operating activities









Net income


$

83,074



$

58,663


Adjustments to reconcile net income to net cash provided by operating 
     activities:








Depreciation and amortization of property and equipment



122,444




114,744


Amortization of intangible assets



35,440




33,591


Amortization of debt financing costs



5,239




4,301


Amortization of debt discount



1,800




1,495


Adjustments to derivative instruments



(16,424)




8,382


Fees to Manager- related party



23,780




36,656


Deferred taxes



21,091




33,398


Pension expense



4,190




4,321


Other non-cash expense (income), net



35




(2,935)


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








Accounts receivable



9,603




(7,871)


Inventories



(1,816)




(4,256)


Prepaid expenses and other current assets



324




(2,529)


Due to Manager - related party



(18)




(122)


Accounts payable and accrued expenses



(15,637)




(15,782)


Income taxes payable



517




(1,506)


Other, net



(7,640)




(11,913)


Net cash provided by operating activities



266,002




248,637











Investing activities









Acquisitions of businesses and investments, net of cash acquired



(12,420)




(66,321)


Purchases of property and equipment



(109,830)




(130,351)


Loan to project developer



(17,800)




(14,675)


Loan repayment from project developer



16,561




1,396


Proceeds from sale of business, net of cash divested



41,038




-


Other, net



157




61


Net cash used in investing activities



(82,294)




(209,890)











Financing activities









Proceeds from long-term debt


$

208,500



$

264,500


Payment of long-term debt



(168,223)




(98,542)


Proceeds from the issuance of shares



125




5,321


Dividends paid to common stockholders



(207,344)




(216,508)


Contributions received from noncontrolling interests



373




-


Distributions paid to noncontrolling interests



(1,943)




(2,040)


Offering and equity raise costs paid



(80)




(182)


Debt financing costs paid



(2,874)




(447)


Payment of capital lease obligations



(54)




(53)


Net cash used in financing activities


(171,520)




(47,951)


Effect of exchange rate changes on cash and cash equivalents



(670)




188


Net change in cash, cash equivalents and restricted cash



11,518




(9,016)


Cash, cash equivalents and restricted cash, beginning of period



72,084




61,257


Cash, cash equivalents and restricted cash, end of period


$

83,602



$

52,241











Supplemental disclosures of cash flow information








Non-cash investing and financing activities:









     Accrued equity offering costs


$

27



$

44


     Accrued purchases of property and equipment


$

23,489



$

41,354


     Issuance of shares to Manager  


$

21,905



$

36,927


     Issuance of shares to independent directors


$

750



$

681


     Conversion of convertible senior notes to shares


$

6



$

17


     Distributions payable to noncontrolling interests


$

21



$

-


     Taxes paid, net


$

7,862



$

7,845


     Interest paid


$

62,541



$

54,601











_________________


















(1) Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2,
''Basis of Presentation'', in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2018.




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




As of June 30,




2018




2017











Cash and cash equivalents


$

53,976



$

28,873


Restricted cash - current



27,509




23,368


Restricted cash held for sale(2)



2,117




-


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


$

83,602



$

52,241











______________________









(2) Represents restricted cash related to BEC, which were classified as held for sale at June 30, 2018. See Note 2, "Basis of Presentation", in our Notes to Consolidated Condensed Financial Statements in Part 1 of Form 10-Q for the quarter ended June 30, 2018, for further discussion.


 

 

MACQUARIE INFRASTRUCTURE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS − MD&A





















































Quarter Ended
June 30,


Change 
Favorable/
(Unfavorable)


Six Months Ended
June 30,



Change
Favorable/
(Unfavorable)





2018



2017



$


%



2018



2017




$


%




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


Revenue

























Service revenue


$

375,997


$

345,045



30,952


9.0


$

778,606


$

708,849




69,757


9.8


Product revenue



102,083



93,945



8,138


8.7



201,030



181,598




19,432


10.7


Total revenue



478,080



438,990



39,090


8.9



979,636



890,447




89,189


10.0



























Costs and expenses

























Cost of services



179,725



147,114



(32,611)


(22.2)



367,195



301,820




(65,375)


(21.7)


Cost of product sales



47,164



40,249



(6,915)


(17.2)



100,549



87,474




(13,075)


(14.9)


Selling, general and administrative



88,927



82,967



(5,960)


(7.2)



175,884



159,919




(15,965)


(10.0)


Fees to Manager - related party



10,852



18,433



7,581


41.1



23,780



36,656




12,876


35.1


Depreciation



61,086



57,063



(4,023)


(7.1)



122,444



114,744




(7,700)


(6.7)


Amortization of intangibles



18,224



15,898



(2,326)


(14.6)



35,440



33,591




(1,849)


(5.5)


Total operating expenses 



405,978



361,724



(44,254)


(12.2)



825,292



734,204




(91,088)


(12.4)


Operating income



72,102



77,266



(5,164)


(6.7)



154,344



156,243




(1,899)


(1.2)


Other income (expense)

























Interest income



111



41



70


170.7



191



75




116


154.7


Interest expense(1)



(30,287)



(35,356)



5,069


14.3



(49,077)



(60,838)




11,761


19.3


Other income, net



6,248



1,738



4,510


 NM 



6,290



2,920




3,370


115.4


Net income before income taxes



48,174



43,689



4,485


10.3



111,748



98,400




13,348


13.6


Provision for income taxes



(11,895)



(17,664)



5,769


32.7



(28,674)



(39,737)




11,063


27.8


Net income


$

36,279


$

26,025



10,254


39.4


$

83,074


$

58,663




24,411


41.6


Less: net (loss) income attributable to
   noncontrolling interests



(2,087)



5



2,092


 NM 



(32,126)



(3,372)




28,754


 NM 


Net income attributable to MIC


$

38,366


$

26,020



12,346


47.4


$

115,200


$

62,035




53,165


85.7



























Basic income per share attributable to
   MIC


$

0.45


$

0.32



0.13


40.6


$

1.36


$

0.75




0.61


81.3


Weighted average number of shares
   outstanding: basic 



85,082,209



82,430,324



2,651,885


3.2



84,952,551



82,285,053




2,667,498


3.2


________________________

























NM - Not meaningful

























(1) Interest expense includes gains on derivative instruments of $5.9 million and $21.0 million for the quarter and six months ended June 30, 2018, respectively. For the
     quarter and six months ended June 30, 2017, interest expense includes losses on derivative instruments of $7.7 million and $6.8 million, 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
June 30,


Change 
Favorable/
(Unfavorable)


Six Months Ended
June 30,




Change
Favorable/
(Unfavorable)





2018



2017



$


%



2018



2017




$


%




($ In Thousands) (Unaudited)



























Net income


$

36,279


$

26,025







$

83,074


$

58,663








Interest expense, net(1)



30,176



35,315








48,886



60,763








Provision for income taxes



11,895



17,664








28,674



39,737








Depreciation



61,086



57,063








122,444



114,744








Amortization of intangibles



18,224



15,898








35,440



33,591








Fees to Manager- related party



10,852



18,433








23,780



36,656








Pension expense(2)



1,937



1,627








4,190



4,321








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



(1,514)



(1,101)








3,366



2,764








EBITDA excluding non-cash items


$

168,935


$

170,924



(1,989)


(1.2)


$

349,854


$

351,239




(1,385)


(0.4)



























EBITDA excluding non-cash items


$

168,935


$

170,924







$

349,854


$

351,239








Interest expense, net(1)



(30,176)



(35,315)








(48,886)



(60,763)








Adjustments to derivative
   instruments recorded in 
   interest expense(1)



(4,706)



5,930








(19,755)



2,683








Amortization of debt 
     financing costs(1)


2,190



2,099








5,239



4,301








Amortization of debt 
     discount(1)



903



876








1,800



1,495








Provision for current income 
     taxes



(3,712)



(2,618)








(7,583)



(6,339)








Changes in working capital(4)



(11,534)



(20,853)








(14,667)



(43,979)








Cash provided by operating 
     activities



121,900



121,043








266,002



248,637








Changes in working capital(4)



11,534



20,853








14,667



43,979








Maintenance capital 
     expenditures



(9,490)



(6,480)








(19,352)



(10,956)








Free cash flow  


$

123,944


$

135,416



(11,472)


(8.5)


$

261,317


$

281,660




(20,343)


(7.2)



























__________________

























(1)  Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and non-cash amortization of debt discount related to
       the 2.00% Convertible Senior Notes due October 2023.


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


(3)  Other non-cash (income) expense, net, primarily includes non-cash amortization of tolling liabilities, unrealized gains (losses) on commodity hedges and non-cash gains
       (losses) related to disposal of assets. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and
       Proportionately Combined Metrics"
above for further discussion.


(4)  Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, ''Basis of
       Presentation'', in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2018.




 

 

MACQUARIE INFRASTRUCTURE CORPORATION
RECONCILIATION FROM CONSOLIDATED FREE CASH FLOW TO
PROPORTIONATELY COMBINED FREE CASH  FLOW












































Change
Favorable/(Unfavorable)



Quarter Ended
June 30,



Change 
Favorable/(Unfavorable)


Six Months Ended June 30,





2018



2017



$


%



2018



2017



$


%



($ In Thousands) (Unaudited)
























Free Cash Flow - Consolidated 
     basis


$

123,944


$

135,416



(11,472)


(8.5)


$

261,317


$

281,660



(20,343)


(7.2)

100% of Contracted Power Free 
     Cash Flow included in 
     consolidated Free Cash Flow


(25,973)



(20,704)








(40,500)



(30,543)






MIC's share of Contracted Power Free Cash Flow


24,027



18,462








36,126



26,633






100% of MIC Hawaii Free Cash 
     Flow included in consolidated 
     Free Cash Flow


(7,226)



(9,295)








(17,976)



(24,231)






MIC's share of MIC Hawaii Free 
     Cash Flow



7,224



9,293








17,971



24,226






Free Cash Flow - Proportionately 
     Combined basis

$

121,996


$

133,172



(11,176)


(8.4)


$

256,938


$

277,745



(20,807)


(7.5)

 

 

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
June 30,


Change
Favorable/
(Unfavorable)



Six Months Ended
June 30,



Change
Favorable/
(Unfavorable)






2018


2017




2018


2017








$


$


$


%



$


$



$


%






($ In Thousands) (Unaudited)




Revenue


129,363


137,144


(7,781)


(5.7)



268,752


275,961



(7,209)


(2.6)




Cost of services


49,716


49,224


(492)


(1.0)



104,141


99,070



(5,071)


(5.1)




Selling, general and administrative 
     expenses


7,814


7,485


(329)


(4.4)



17,120


16,523



(597)


(3.6)




Depreciation and amortization


32,770


30,795


(1,975)


(6.4)



66,019


62,315



(3,704)


(5.9)




Operating income


39,063


49,640


(10,577)


(21.3)



81,472


98,053



(16,581)


(16.9)




Interest expense, net(1)


(10,933)


(11,763)


830


7.1



(18,672)


(20,520)



1,848


9.0




Other income, net


154


452


(298)


(65.9)



450


1,160



(710)


(61.2)




Provision for income taxes


(8,087)


(15,716)


7,629


48.5



(17,773)


(32,264)



14,491


44.9




Net income


20,197


22,613


(2,416)


(10.7)



45,477


46,429



(952)


(2.1)


























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


20,197


22,613







45,477


46,429









Interest expense, net(1)


10,933


11,763







18,672


20,520









Provision for income taxes


8,087


15,716







17,773


32,264









Depreciation and amortization


32,770


30,795







66,019


62,315









Pension expense(2)


1,743


1,350







3,823


3,766









Other non-cash expense, net 


310


69







404


137

 ` 








EBITDA excluding non-cash items


74,040


82,306


(8,266)


(10.0)



152,168


165,431



(13,263)


(8.0)


























EBITDA excluding non-cash items


74,040


82,306







152,168


165,431









Interest expense, net(1)


(10,933)


(11,763)







(18,672)


(20,520)









Adjustments to derivative 
     instruments recorded in interest 
     expense(1)


(1,351)


1,587







(5,393)


267









Amortization of debt financing 
     costs(1)


412


412







823


823









Provision for current income taxes


(4,376)


(1,155)







(8,652)


(3,413)









Changes in working capital


5,545


(16,881)







10,634


(16,145)









Cash provided by operating activities


63,337


54,506







130,908


126,443









Changes in working capital


(5,545)


16,881







(10,634)


16,145









Maintenance capital expenditures


(5,483)


(2,987)







(12,472)


(5,447)









Free cash flow


52,309


68,400


(16,091)


(23.5)



107,802


137,141



(29,339)


(21.4)




_____________________






















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



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



 

 

Atlantic Aviation




































































Quarter Ended
June 30,


Change
Favorable/
(Unfavorable)



Six Months Ended June 30,



Change
Favorable/
(Unfavorable)






2018


2017




2018


2017








$


$


$


%



$


$



$


%






($ In Thousands) (Unaudited)



Revenue


232,931


196,939


35,992


18.3



480,133


409,692



70,441


17.2




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


115,994


86,957


(29,037)


(33.4)



232,687


180,879



(51,808)


(28.6)




Gross margin


116,937


109,982


6,955


6.3



247,446


228,813



18,633


8.1




Selling, general and administrative 
     expenses


56,717


52,596


(4,121)


(7.8)



116,656


106,486



(10,170)


(9.6)




Depreciation and amortization


26,959


23,575


(3,384)


(14.4)



52,438


48,608



(3,830)


(7.9)




Operating income


33,261


33,811


(550)


(1.6)



78,352


73,719



4,633


6.3




Interest expense, net(1)


(4,242)


(5,907)


1,665


28.2



(4,311)


(9,353)



5,042


53.9




Other expense, net


(555)


(19)


(536)


 NM 



(499)


(105)



(394)


 NM 




Provision for income taxes


(7,600)


(11,077)


3,477


31.4



(19,711)


(25,627)



5,916


23.1




Net income


20,864


16,808


4,056


24.1



53,831


38,634



15,197


39.3


























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


20,864


16,808







53,831


38,634









Interest expense, net(1)


4,242


5,907







4,311


9,353









Provision for income taxes


7,600


11,077







19,711


25,627









Depreciation and amortization


26,959


23,575







52,438


48,608









Pension expense(2)


6


5







11


10









Other non-cash expense (income), 
     net 


597


(22)







909


40









EBITDA excluding non-cash items


60,268


57,350


2,918


5.1



131,211


122,272



8,939


7.3


























EBITDA excluding non-cash items


60,268


57,350







131,211


122,272









Interest expense, net(1)


(4,242)


(5,907)







(4,311)


(9,353)









Convertible senior notes 
     interest(3)


(2,013)


(2,013)







(4,025)


(3,757)









Adjustments to derivative 
     instruments recorded in interest 
     expense(1)


(1,077)


2,553







(5,444)


2,686









Amortization of debt financing 
     costs(1)


283


221







562


535









Provision for current income taxes


(7,207)


(1,730)







(13,740)


(4,602)









Changes in working capital


4,572


784







10,591


(5,332)









Cash provided by operating 
     activities


50,584


51,258







114,844


102,449









Changes in working capital


(4,572)


(784)







(10,591)


5,332









Maintenance capital expenditures


(1,807)


(1,981)







(3,109)


(2,906)









Free cash flow


44,205


48,493


(4,288)


(8.8)



101,144


104,875



(3,731)


(3.6)




_____________________






















NM - Not meaningful






















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



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



(3)  Represents the cash interest expense reclassified from MIC Corporate related to the 2.00% Convertible Senior Notes due October 2023, proceeds of which were used to pay down a portion of Atlantic Aviation's credit facility in October 2016.



 

 

Contracted Power














































Quarter Ended
June 30,


Change
Favorable/
(Unfavorable)



Six Months Ended June 30,



Change
Favorable/
(Unfavorable)






2018


2017




2018


2017








$


$


$


%



$


$



$


%






($ In Thousands) (Unaudited)

























Product revenue


41,403


40,166


1,237


3.1



76,690


68,236



8,454


12.4




Cost of product sales


5,862


5,498


(364)


(6.6)



11,699


10,357



(1,342)


(13.0)




Selling, general and administrative 
     expenses


7,510


6,244


(1,266)


(20.3)



15,022


11,409



(3,613)


(31.7)




Depreciation and amortization


14,519


14,861


342


2.3



30,046


30,201



155


0.5




Operating income


13,512


13,563


(51)


(0.4)



19,923


16,269



3,654


22.5




Interest expense, net(1)


(4,832)


(8,767)


3,935


44.9



(5,717)


(14,150)



8,433


59.6




Other income, net


6,721


1,341


5,380


 NM 



7,726


2,106



5,620


 NM 




Provision for income taxes


(3,654)


(1,845)


(1,809)


(98.0)



(4,604)


(1,872)



(2,732)


(145.9)




Net income


11,747


4,292


7,455


173.7



17,328


2,353



14,975


 NM 




Less: net (loss) income attributable to
   noncontrolling interest


(2,003)


16


2,019


 NM 



(32,059)


(3,333)



28,726


 NM 




Net income attributable to MIC


13,750


4,276


9,474


 NM 



49,387


5,686



43,701


 NM 


























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


11,747


4,292







17,328


2,353









Interest expense, net(1)


4,832


8,767







5,717


14,150









Provision for income taxes


3,654


1,845







4,604


1,872









Depreciation and amortization


14,519


14,861







30,046


30,201









Other non-cash income, net(2)


(1,690)


(2,232)







(3,578)


(4,256)









EBITDA excluding non-cash items


33,062


27,533


5,529


20.1



54,117


44,320



9,797


22.1


























EBITDA excluding non-cash items


33,062


27,533







54,117


44,320









Interest expense, net(1)


(4,832)


(8,767)







(5,717)


(14,150)









Adjustments to derivative 
     instruments recorded in interest 
     expense(1)


(2,178)


1,474







(8,148)


(360)









Amortization of debt financing 
     costs(1)


379


379







758


758









(Provision) benefit for current income 
     taxes


(54)


85







(70)


(3)









Changes in working capital(3)


(12,694)


(7,621)







(11,775)


(8,206)









Cash provided by operating 
     activities


13,683


13,083







29,165


22,359









Changes in working capital(3)


12,694


7,621







11,775


8,206









Maintenance capital expenditures


(404)


-







(440)


(22)









Free cash flow


25,973


20,704


5,269


25.4



40,500


30,543



9,957


32.6


























_____________________






















NM - Not meaningful

























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



(2)  Other non-cash income, net, primarily includes amortization of tolling liabilities. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items, Free Cash Flow and Proportionately Combined Metrics" above for further discussion.



(3)  Conformed to current period presentation for the adoption of ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. See Note 2, ''Basis of Presentation'', in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2018.



 

 

MIC Hawaii














































Quarter Ended
June 30,


Change
Favorable/
(Unfavorable)



Six Months Ended June 30,



Change
Favorable/
(Unfavorable)






2018


2017




2018


2017









$


$


$


%



$


$



$


%






($ In Thousands) (Unaudited)

























Product revenue


60,680


53,779


6,901


12.8



124,340


113,362



10,978


9.7




Service revenue


14,935


12,193


2,742


22.5



32,184


25,650



6,534


25.5




Total revenue


75,615


65,972


9,643


14.6



156,524


139,012



17,512


12.6




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


41,302


34,751


(6,551)


(18.9)



88,850


77,117



(11,733)


(15.2)




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


14,015


10,944


(3,071)


(28.1)



30,367


21,884



(8,483)


(38.8)




     Cost of revenue — total


55,317


45,695


(9,622)


(21.1)



119,217


99,001



(20,216)


(20.4)




Gross margin


20,298


20,277


21


0.1



37,307


40,011



(2,704)


(6.8)




Selling, general and administrative 
     expenses


7,974


6,770


(1,204)


(17.8)



15,203


12,855



(2,348)


(18.3)




Depreciation and amortization


4,896


3,730


(1,166)


(31.3)



9,051


7,211



(1,840)


(25.5)




Operating income


7,428


9,777


(2,349)


(24.0)



13,053


19,945



(6,892)


(34.6)




Interest expense, net(1)


(1,887)


(2,207)


320


14.5



(3,177)


(3,918)



741


18.9




Other income (expense), net


6


(36)


42


116.7



(1,313)


(241)



(1,072)


 NM 




Provision for income taxes


(2,144)


(2,563)


419


16.3



(2,949)


(5,942)



2,993


50.4




Net income


3,403


4,971


(1,568)


(31.5)



5,614


9,844



(4,230)


(43.0)




Less: net loss attributable to 
     noncontrolling interests


(84)


(11)


73


 NM 



(67)


(39)



28


71.8




Net income attributable to MIC


3,487


4,982


(1,495)


(30.0)



5,681


9,883



(4,202)


(42.5)


























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






















Net income


3,403


4,971







5,614


9,844









Interest expense, net(1)


1,887


2,207







3,177


3,918









Provision for income taxes


2,144


2,563







2,949


5,942









Depreciation and amortization


4,896


3,730







9,051


7,211









Pension expense(2)


128


272







255


545









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


(954)


897







5,245


6,468









EBITDA excluding non-cash items


11,504


14,640


(3,136)


(21.4)



26,291


33,928



(7,637)


(22.5)


























EBITDA excluding non-cash items


11,504


14,640







26,291


33,928









Interest expense, net(1)


(1,887)


(2,207)







(3,177)


(3,918)









Adjustments to derivative 
     instruments recorded in interest 
     expense(1)


(100)


316







(770)


90









Amortization of debt financing 
     costs(1)


95


99







192


204









Provision for current income taxes


(590)


(2,041)