Macquarie

552 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
552
On SlideShare
0
From Embeds
0
Number of Embeds
214
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Macquarie

  1. 1. FOURTH QUARTER AND FULL YEAR 2011 EARNINGS CONFERENCE CALL Macquarie Infrastructure Company LLC February 2012Macquarie Infrastructure Company LLC
  2. 2. Di l iDisclaimerThis presentation by Macquarie Infrastructure Company LLC (MIC) is proprietary and all rights arereserved. Any reproduction, in whole or in part, without the prior written consent of Macquarie prohibited.Infrastructure Company is prohibitedThis presentation is based on information generally available to the public and does not contain anymaterial, non-public information. The presentation has been prepared solely for information purposes,it is not a solicitation of any offer to buy or sell any security or instrument. y y y yThis presentation contains forward-looking statements. Forward-looking statements in thispresentation are subject to a number of risks and uncertainties, some of which are beyond ourcontrol. Our actual results, performance, prospects or opportunities could differ materially from thoseexpressed iin or iimplied b th f d li d by the forward-looking statements. A d d l ki t t t description of k i ti f known risks th t could i k that ldcause our actual results to differ appears under the caption “Risk Factors” in our Form 10-K filed withthe Securities and Exchange Commission on February 22, 2012. Additional risks of which we are notcurrently aware could also cause our actual results to differ.These forward-looking statements are made as of the date of this presentation. We undertake noobligation to publicly update or revise any forward-looking statements whether as a result of newinformation, future events or otherwise, except as required by law.“Macquarie Group” consists of Macquarie Group Limited and its worldwide subsidiaries and affiliates.MIC is not an authorised deposit-taking institution for the purposes of the Banking Act 1959(Commonwealth of Australia) and its obligations do not represent deposits or other liabilities ofMMacquarie B k Li it d ABN 46 008 583 542 M i Bank Limited 542. Macquarie B k Li it d d i Bank Limited does not guarantee or t totherwise provide assurance in respect of the obligations of MIC. 2
  3. 3. MIC – C h G ti Cash Generation Fourth Quarter and Full Year Proportionately Combined Free Cash Flow1 160.0 145.7 145.1 Proportionately 140.0 Combined Free Cash 120.0 Flow: 100.0 $3.16 / share in 2011 80.0 vs. 60.0 $3.19 / share in 2010 37.6 37 6 40.0 27.7 2010 included non- 20.0 recurring contribution 0.0 00 related to oil spill clean- 4Q10 / 4Q11 YTD10 / YTD11 up activity of $0.52 / share1. Includes 50% equity interest in IMTT and 50.01% controlling interest in District Energy 3
  4. 4. MIC – C h G ti Cash Generation Proportionately Combined Net Income, EBITDA Excluding Non-Cash Items and Free Cash Flow $ Millions 4Q 2011 4Q 2010 FY 2011 FY 2010 Net Income $ 13.2 $ 4.1 $ 31.9 $ 15.6 EBITDA ex Non-cash Items $ 72.1 $ 68.0 $281.7 $280.5 Free Cash Flow $ 37.6 $ 27.7 $145.1 $145.7 Consolidated Net Income, EBITDA Excluding Non-Cash Items and Free Cash Flow $ Millions 4Q 2011 4Q 2010 FY 2011 FY 2010 Net Income1 $ 12.3 $ 4.1 $ 27.3 $ 9.5 EBITDA ex Non Non- $ 47.9 $ 44.5 $189.9 $188.5 cash Items Free Cash Flow $ 24.4 $ 16.1 $ 98.0 $ 94.71. Net income attributable to MIC LLC from continuing operations excludes net income attributable to noncontrolling interests of $149,000 and $1.5 million for the quarter and year ended December 31, 2011, respectively, and net income attributable to noncontrolling interests of $2.0 million and $523,000 for the quarter and year ended December 31, 2010, respectively 4
  5. 5. MIC – C h G ti Cash Generation Full Year 2011 Proportionately Combined Free Cash Flow1, by Segment International-Matex The Tank Terminals2 Gas Company 36% 19% District Energy2 5% Atlantic Aviation 40%1. Continuing operations only; excludes non-operating holding company results. See 2011 reconciliation of net income (loss) to EBITDA, excluding non-cash items and EBITDA excluding non-cash items to free cash flow, by operating segment.2. Represents MIC’s 50% interest in IMTT and 50.01% interest in District Energy 5
  6. 6. MIC – C h G ti Cash Generation Proportionately Combined Free Cash Flow / Share Bridge$4.00 $3.50 - $3.60 $0.10$3.50 $3.16 $3.19 $0.21 $0.44 DE $0.16$3.00 $0.52 $2.67 $0.70 TGC DE $0 16 $0.16 $0.62 $$2.50 TGC $0.55$2.00 AA AA $1 34 $1.34$1.50 $1.06$1.00 IMTT IMTT$0.50 $1.09 $1.18$0.00 MIC ($0.19) ($0 19) MIC ($0.14) ($ )-$0.50 2010 Full OMI 2010 2011 Growth 2011 Accel. 2011 Full 2012 Growth 2012 Accel. 2012 full Year Adjusted (Actual) Capex Year (Estimate) Capex Year (Actual) (Actual) (Actual) (Estimate) (Estimate) 1. includes unusual contribution to FCF from OMI related to BP oil spill in 2010 plus impact of management fees reinvested in additional shares 6
  7. 7. MIC – P f O i Performance Overview4Q’11 Key Factors 48.2% 48 2% Increase in Proportionately Combined Free Cash Flow excluding cash Flow, generated by environmental services business in the fourth quarters of 2010 and 2011 – Includes impact of increased maintenance capex in 4Q’11 Cash dividend of $0.20 per share declared – Record date March 5, 2012 – Payable date March 8, 2012 Consistent improvement in quarterly performance of all businesses − 5.0% increase in gross profit at Atlantic Aviation g g − 12.6% increase in average storage rates at IMTT − 4.9% increase in volume of gas sold by The Gas Company − 13.1% increase in consumption revenue at District Energy 7
  8. 8. MIC – P f O i Performance OverviewFY 2011 Key Factors 17.7% 17 7% increase in Proportionately Combined Free Cash Flow excluding cash Flow, generated by environmental services business in 2010 and 2011 – Includes impact of increased maintenance capex in 2011 Cash dividends of $0.80 per share declared, $0.60 per share paid to date – Distributions characterized as dividends, reported in Box 1 on Form 1099 All businesses performed at or above e pectations for full year b sinesses abo e expectations f ll ear − 3.5% increase in gross profit driven by 5.5% same store GA volume and 2.5% same store GA fuel margin expansion at Atlantic Aviation g p − 13.3% increase in average storage rates at IMTT, slight increase in utilization rates − 2.1% increase in the volume of gas products sold by The Gas Company − EBITDA flat at District Energy in spite of cooler weather on lower real estate taxes improved capacity revenue taxes, 8
  9. 9. MIC 4Q and FY 11 – IMTT FY’11OperationsGood Top Line Growth in 4Q Terminal revenue increased 13.9% on average storage rate growth of 12.6% Terminal operating costs increased 8.9% reflecting higher repairs and maintenance, a substantial portion involving repair of construction defects Pipeline of new growth opportunities expanded by more than $20 millionStrong Full Year Result Terminall revenue iincreased 12.1% on average storage rate growth of 13 3% T i d 12 1% t t th f 13.3% Capacity utilization increased to 94.3% from 93.6% 90.4% 90 4% decline in environmental response gross profit reflects that OMI Environmental Services was not involved in major spill clean-up activities in 20112012 Guidance Full year 2012 EBITDA expected to be between $220 and $235 million – Assumes modest price improvement, forecast maintenance capex of $50m 9
  10. 10. MIC 4Q and FY 11 - The Gas Company FY’11 Operations Economic Recovery Continues in 4Q Volume of gas products sold increases 4 9% 4.9% Strong growth in non-utility contribution margin partially offset by higher p production, transmission and distribution costs Solid Full Year Financial Result Number of visitors to Hawaii increased by 3.8%1 Volume of gas products sold increase by 2.1% Gross profit increases by 7.1% Free cash flow increases 13 4% in spite of increased maintenance capex and 13.4% higher state taxes 2012 Guidance Full year 2012 EBITDA expected be between $50m and $55m – Assumes continued recovery in Hawaiian economy, no material supply disruptions1. Through December 31, 2011 compared with 2010 10
  11. 11. MIC 4Q and FY 11 - District Energy FY’11OperationsWarm Fall Extends Consumption Revenue into 4Q Consumption revenue up 13 1% 13.1% Capacity revenue increases with CPI escalators, new customers Decline in total revenue reflects life-to-date re-class of lease interest in 2010Full 2011 Performance Meets Expectations Consumption revenue down on slightly cooler summer temperatures in 2011 compared with 2010 Free cash flow down slightly as a result of higher state taxes2021 Guidance Full year 2012 EBITDA expected to be between $21m and $22m – Assumes no significant variation in weather in Chicago 11
  12. 12. MIC 4Q and FY 11 - Atlantic Aviation FY’11OperationsPositive Trends Continue in 4Q 16.9% Fuel revenue up strongly at 16 9% Gross profit increases 5.0%Full Year 2011 Results Reflect Ongoing Recovery g g y Gross profit rises 3.5% on 5.5% increase in same store GA volume and 2.5% increase in same store GA fuel margin offset by decrease in non-fuel gross profit Leverage ratio reduced to 5.98x at year end 2011 – Exits cash flow lock-up during fourth quarter, makes $6.5 million debt pre- payment and $6.5 million payment to MIC in February2012 Guidance Full year 2012 EBITDA expected to be between $130m and $140m – A Assumes continued recovery iin generall aviation fli ht activity ti d i ti flight ti it 12
  13. 13. MIC – D bt P fil Debt Profile Atlantic Aviation1,2,3 $1,000,000 The Gas Company 1,3 District Energy 1,3 $750,000 1,3 IMTT ($ 000) $500,000 $250,000 $ $- 2012 2013 2014 20151. Assumes current balance on all facilities at December 31, 2011, does not reflect future draws or mandatory repayments with excess cash flow2. Reflects impact of debt pre-payments year to date through December 31, 20113. Reflects maturity dates of primary facilities 13
  14. 14. MIC – D bt P fil Debt Profile Debt Balance Weighted Average Business Maturity1 Amount ($000) All-in Rate3 Atlantic Aviation October 16, 2014 780,5882 6.49% The Gas Company June 7, 2013 170,000 5.16% District Energy September 27, 2014 170,000 5.54% IMTT June 7, 2014 639,757 5.05%1. Reflects maturity dates of primary facilities2 Reflects impact of primary debt facility pre-payments year to date through December 31, 2011, capex facility with drawn balance of $50.0 million and $3.4 stand-2. pre payments 31 2011 $50 0 $3 4 stand alone facility related to new FBO at Oklahoma City3. Reflects annualized costs associated with interest on all facilities, letters of credit, commitment fees (excludes non-cash deferred financing costs and swap break fees) 14
  15. 15. MIC – D bt P fil Debt Profile Percentage of Headroom Actual Ratio Available at Required at December December (1) Business/Investment Debt Facility Maturity Type of Ratio Ratio (2) 31, 2011 31, 2011Energy-Related Businesses: IMTT(3) Revolver June 2014 Leverage < 4.75x 2.70x 76% Interest Coverage > 3.00x 6.12x 104% The Gas Company(4) Term Loan and Revolver June 2013 Forward Interest Coverage > 3.50x 10.07x 188% Backward Interest Coverage > 3.50x 6.95x 99% District Energy(4) Term Loan September 2014 Leverage > 6.00% 8.73% 46% Interest Coverage > 1.50x 2.27x 51%Aviation-Related B iA i ti R l t d Business: (4) Atlantic Aviation Term Loan October 2014 Leverage < 7.50x 5.98x 25% Debt Service Coverage > 1.20x 2.12x 77%__________(1) Ratio as per the debt agreement(2) Maximum leverage permitted, or minimum coverage required as per debt agreement(3) For a description and material terms of IMTTs debt facilities, see "Managements Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources - IMTT in Part II, Item 7 "(4) F ad For description and materiall terms of our consolidated businesses debt f iliti i ti d t i t f lid t d b i d bt facilities, see N t 10 "L Note 10, "Long-Term D bt" in our consolidated financiall statements T Debt", i lid t d fi i t t t "Financial Statements and Supplementary Data" in Part II, Item 8, of this Form 10-K 15
  16. 16. Appendix: Reconciliationof Segment Financial DataFourth Quarter and FullYear 2011 16
  17. 17. Energy Related: Bulk Liquid Storage Terminals Q ua rte r E nde d Ye a r E nde d Decembe r 31, Cha nge De c e mbe r 31, Cha nge 2011 2010 Favora ble /(Unfa vora ble ) 2011 2010 Fa vorable /(Unfa vora ble) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)R e ve nueTerminal revenue 107,177 94,083 13,094 13.9 417,422 372,205 45,217 12.1Environmental response revenue 7,565 15,626 (8,061) (51.6) 29,670 184,979 (155,309) (84.0) Total revenue 114,742 109,709 5,033 4.6 447,092 557,184 (110,092) (19.8)Costs a nd e xpe nse sTerminal operating costs 47,763 43,867 (3,896) (8.9) 188,222 168,713 (19,509) (11.6)Environmental response operating costs 6,982 7,738 756 9.8 23,013 115,937 92,924 80.2 Total operating costs 54,745 51,605 (3,140) (6.1) 211,235 284,650 73,415 25.8Terminal gross profit 59,414 50,216 9,198 18.3 229,200 203,492 25,708 12.6Environmental response gross profit 583 7,888 (7,305) (92.6) 6,657 69,042 (62,385) (90.4) Gross profit G fi 59,997 9 99 58,104 8 104 1,893 1 893 3.3 33 235,857 23 8 272,534 2 2 34 (36,677) (36 6 ) (13.5) (13 )General and administrative expenses 7,401 7,323 (78) (1.1) 30,976 37,125 6,149 16.6Depreciation and amortization 16,383 15,141 (1,242) (8.2) 64,470 61,277 (3,193) (5.2) Operating income 36,213 35,640 573 1.6 140,411 174,132 (33,721) (19.4)Interest (expense) income, net(1) (6,944) 8,150 (15,094) (185.2) (52,257) (50,335) (1,922) (3.8)Other income 272 372 ( (100) ) ( (26.9) ) 1,486 1,953 ( (467)) ( (23.9) )Provision for income taxes (9,836) (17,619) 7,783 44.2 (34,820) (53,521) 18,701 34.9Noncontrolling interests (48) 82 (130) (158.5) 137 (165) 302 183.0 Ne t inc ome 19,657 26,625 (6,968) (26.2) 54,957 72,064 (17,107) (23.7) 17
  18. 18. Energy Related: Bulk Liquid Storage Terminals (Cont.) Q uarter E nded Year E nded December 31, Change December 31, Change 2011 2010 Favorable/(Unfavorable) 2011 2010 Favorable/(Unfavorable) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Reconciliation of net income to EBITDA excluding non-cash items:Net income 19,657 26,625 54,957 72,064Interest expense (income), net(1) 6,944 (8,150) 52,257 50,335Provision for income taxes 9,836 17,619 34,820 53,521Depreciation and amortization 16,383 15,141 64,470 61,277Other non-cash income (expense) 42 (88) (114) (361)EBITDA excluding non-cash items 52,862 51,147 1,715 3.4 206,390 236,836 (30,446) (12.9)EBITDA excluding non-cash items 52,862 51,147 206,390 236,836Interest (expense) income, net(1) ( , (6,944)) 8,150 , ( , (52,257)) ( , (50,335)) Non-cash derivative (gains) losses recorded in interest expense(1) (1,998) (17,441) 16,655 15,653 Amortization of debt financing costs(1) 807 683 3,233 2,011Provision for income taxes, net of changes in deferred taxes 5,596 (1,702) (8,169) (12,514)Changes in working capital (6,233) 24,229 (36,701) 4,536Cash provided by operating activities 44,090 65,066 129,151 196,187Changes iin working capitallCh ki it 6,233 6 233 (24,229) (24 229) 36,701 36 701 (4,536) (4 536)Maintenance capital expenditures (21,199) (15,826) (57,257) (44,995) Free cash flow 29,124 25,011 4,113 16.4 108,595 146,656 (38,061) (26.0)_____________________(1) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. 18
  19. 19. Energy Related: The Gas Company Q ua rte r E nde d Ye a r E nde d Decembe r 31, Change De c e mbe r 31, Cha nge 2011 2010 Favora ble /(Unfa vora ble ) 2011 2010 Fa vorable /(Unfa vora ble) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Contribution ma rginRevenue - non-utility 29,678 24,095 5,583 23.2 112,020 96,855 15,165 15.7Cost of revenue - non-utility 14,956 11,872 (3,084) (26.0) 60,369 48,896 (11,473) (23.5) Contribution margin - non-utility 14,722 12,223 2,499 20.4 51,651 47,959 3,692 7.7Revenue - utility y 34,964 , 30,235 , 4,729 , 15.6 140,746 , 113,752 , 26,994 , 23.7Cost of revenue - utility 25,455 20,713 (4,742) (22.9) 102,213 76,891 (25,322) (32.9) Contribution margin - utility 9,509 9,522 (13) (0.1) 38,533 36,861 1,672 4.5 Tota l c ontribution ma rgin 24,231 21,745 2,486 11.4 90,184 84,820 5,364 6.3Production 2,089 1,599 (490) (30.6) 7,410 6,725 (685) (10.2)Transmission and distribution 5,348 4,219 (1,129) (26.8) 19,776 19,269 (507) (2.6) G ross profit 16,794 16 794 15,927 15 927 867 5.4 54 62,998 62 998 58,826 58 826 4,172 4 172 7.1 71Selling, general and administrative expenses 3,353 4,127 774 18.8 16,025 16,684 659 3.9Depreciation and amortization 1,800 1,723 (77) (4.5) 7,218 6,649 (569) (8.6) O perating income 11,641 10,077 1,564 15.5 39,755 35,493 4,262 12.0Interest expense, net(1) (1,226) (725) (501) (69.1) (9,138) (16,505) 7,367 44.6Other expense (11) (80) 69 86.3 (220) (90) (130) (144.4)Provision f iP i i for income taxes (4,324) ( ) (3,631) ( ) (693) ( ) (19.1) ( ) (12,225) ( ) (7,400) ( ) (4,825) ( ) (65.2) ( )Ne t income (2 ) 6,080 5,641 439 7.8 18,172 11,498 6,674 58.0 19
  20. 20. Energy Related: The Gas Company (Cont.) Q uarter E nded Year E nded December 31, Change December 31, Change 2011 2010 Favorable/(Unfavorable) 2011 2010 Favorable/(Unfavorable) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Reconciliation of net income to EBITDA excluding non-cash items:Net income (2) 6,080 5,641 18,172 11,498Interest expense, net (1) 1,226 725 9,138 16,505Provision for income taxes 4,324 3,631 12,225 7,400Depreciation and amortization 1,800 1,723 7,218 6,649Other non-cash expense 361 785 2,279 2,384EBITDA excluding non-cash items 13,791 12,505 1,286 10.3 49,032 44,436 4,596 10.3EBITDA excluding non cash items non-cash 13,791 12,505 49,032 44,436Interest expense, net (1) (1,226) (725) (9,138) (16,505) Non-cash derivative (gains) losses recorded in interest expense(1) (1,157) (1,611) (225) 7,334 (1) 120 119 478 478 Amortization of debt financing costsProvision for income taxes, net of changes in deferred taxes 971 (3,057) (3,136) (4,333)Changes in working capital (1,871) (759) (9,350) (2,079)Cash provided by operating activities 10,628 6,472 27,661 29,331Changes in working capital 1,871 759 9,350 2,079Maintenance capital expenditures (2,215) (4,267) (8,503) (6,275) Free cash flow 10,284 2,964 7,320 NM 28,508 25,135 3,373 13.4_____________________ gNM - Not meaningful(1) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.(2) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. 20
  21. 21. Energy Related: District Energy Q ua rte r E nde d Ye a r E nde d Decembe r 31, Change De c e mbe r 31, Cha nge 2011 2010 Favora ble /(Unfa vora ble ) 2011 2010 Fa vorable /(Unfa vora ble) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Cooling capacity revenue 5,502 5,327 175 3.3 21,784 21,162 622 2.9Cooling consumption revenue 3,262 2,883 379 13.1 22,707 24,386 (1,679) (6.9)Other revenue 676 881 (205) (23.3) 2,957 3,371 (414) (12.3)Finance lease revenue 1,208 1 208 4,076 4 076 (2,868) (2 868) (70.4) (70 4) 4,992 4 992 7,843 7 843 (2,851) (2 851) (36.4) (36 4) Total revenue 10,648 13,167 (2,519) (19.1) 52,440 56,762 (4,322) (7.6)Direct expenses — electricity 2,323 2,154 (169) (7.8) 14,641 16,343 1,702 10.4Direct expenses — other(1) 4,715 5,471 756 13.8 19,961 20,349 388 1.9 Direct expenses — total 7,038 7,625 587 7.7 34,602 36,692 2,090 5.7 Gross profit 3,610 5,542 (1,932) (34.9) 17,838 20,070 (2,232) (11.1)Selling, generall and administrative expensesS lli d d i i i 925 867 (58) (6.7) (6 7) 3,374 3 374 3,217 3 217 (157) (4.9) (4 9)Amortization of intangibles 345 345 - - 1,368 1,368 - - Operating income 2,340 4,330 (1,990) (46.0) 13,096 15,485 (2,389) (15.4)Interest (expense) income, net(2) (1,458) 195 (1,653) NM (13,208) (20,671) 7,463 36.1Other income 166 268 (102) (38.1) 1,478 1,804 (326) (18.1)(Provision) benefit for income taxes (344) (1,620) 1,276 78.8 (212) 1,844 (2,056) (111.5)Noncontrolling interests (212) (694) 482 69.5 (850) (1,284) 434 33.8 Ne t inc ome (loss) 492 2,479 (1,987) (80.2) 304 (2,822) 3,126 110.8 21
  22. 22. Energy Related: District Energy (Cont.) Q uarter E nded Year E nded December 31, Change December 31, Change 2011 2010 Favorable/(Unfavorable) 2011 2010 Favorable/(Unfavorable) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Reconciliation of net income (loss) to EBITDA excluding non-cash items:Net income (loss) 492 2,479 304 (2,822)Interest expense (income), net(2) 1,458 (195) 13,208 20,671Provision (benefit) for income taxes 344 1,620 212 (1,844)Depreciation(1) 1,670 1,645 6,639 6,555Amortization of intangibles 345 345 1,368 1,368Other non-cash expense (income) 313 (1,734) 964 (1,082)EBITDA excluding non-cash items 4,622 4,160 462 11.1 22,695 22,846 (151) (0.7)EBITDA excluding non cash items non-cash 4,622 4,160 22,695 22,846Interest (expense) income, net(2) (1,458) 195 (13,208) (20,671) Non-cash derivative (gains) losses recorded in interest expense(2) (1,221) (2,870) 2,587 10,136 Amortization of debt financing costs(2) 170 170 681 681Equipment lease receivable, net 834 559 3,105 2,761 224 - (868) -Provision/benefit for income taxes, net of changes in deferred taxesChanges in working capital 1,128 2,867 520 (794)Cash provided by operating activities 4,299 5,081 15,512 14,959Changes in working capital (1,128) (2,867) (520) 794Maintenance capital expenditures (370) (394) (659) (1,207) Free cash flow 2,801 1,820 981 53.9 14,333 14,546 (213) (1.5)_____________________NM - Not meaningful(1) Includes depreciation expense of $1.7 million and $6.6 million for the quarter and year ended December 31, 2011, respectively, and $1.6 million and $6.6 million for the quarter and year ended December 31, 2010, respectively.(2) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees. 22
  23. 23. Aviation Related: Atlantic Aviation Q ua rte r E nde d Ye a r E nde d Decembe r 31, Change De c e mbe r 31, Cha nge 2011 2010 Favora ble /(Unfa vora ble ) 2011 2010 Fa vorable /(Unfa vora ble) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)R e ve nueFuel revenue 135,363 115,837 19,526 16.9 527,501 417,489 110,012 26.4Non-fuel revenue 39,502 38,163 1,339 3.5 156,084 155,933 151 0.1 Total revenue 174,865 154,000 20,865 13.5 683,585 573,422 110,163 19.2Cost of re ve nueCost of revenue-fuel 92,745 76,156 (16,589) (21.8) 363,694 265,493 (98,201) (37.0)Cost of revenue-non-fuel 5,001 4,376 (625) (14.3) 18,142 16,397 (1,745) (10.6) Total cost of revenue 97,746 80,532 (17,214) (21.4) 381,836 281,890 (99,946) (35.5) Fuel gross profit 42,618 39,681 2,937 7.4 163,807 151,996 11,811 7.8 Non-fuel gross profit 34,501 33,787 714 2.1 137,942 139,536 (1,594) (1.1) Gross profit 77,119 77 119 73,468 73 468 3,651 3 651 5.0 50 301,749 301 749 291,532 291 532 10,217 10 217 3.5 35Selling, general and administrative expenses 44,043 44,764 721 1.6 174,148 174,526 378 0.2Depreciation and amortization 14,472 14,500 28 0.2 67,336 56,602 (10,734) (19.0)(Gain) loss on disposal of assets (221) 17,869 18,090 101.2 1,522 17,869 16,347 91.5Operating income (loss) 18,825 (3,665) 22,490 NM 58,743 42,535 16,208 38.1Interest expense, net(1) p (7,696) (7,797) 101 1.3 (36,905) (69,409) 32,504 46.8Other expense (49) (272) 223 82.0 (244) (917) 673 73.4(Provision) benefit for income taxes (7,716) 3,026 (10,742) NM (11,952) 9,497 (21,449) NMNe t income (loss) (2 ) 3,364 (8,708) 12,072 138.6 9,642 (18,294) 27,936 152.7 23
  24. 24. Aviation Related: Atlantic Aviation (Cont.) Q uarter E nded Year E nded December 31, Change December 31, Change 2011 2010 Favorable/(Unfavorable) 2011 2010 Favorable/(Unfavorable) $ $ $ % $ $ $ % ($ In Thousands) (Unaudited)Reconciliation of net income (loss) to EBITDA excluding non-cashitems:Net income (loss)(2) 3,364 (8,708) 9,642 (18,294)Interest expense, net(1) 7,696 7,797 36,905 69,409Provision (benefit) for income taxes 7,716 (3,026) 11,952 (9,497)Depreciation and amortization 14,472 14,500 67,336 56,602(Gain) loss on disposal of assets (332) 17,869 617 17,869Other non-cash (income) expense (82) 634 228 1,388EBITDA excluding non-cash items 32,834 29,066 3,768 13.0 126,680 117,477 9,203 7.8EBITDA excluding non-cash items 32,834 29,066 126,680 117,477Interest expense, net(1) (7,696) (7,797) (36,905) (69,409) Interest rate swap breakage fees(1) (80) (839) (2,327) (5,528) Non-cash derivative (gains) losses recorded in interest expense(1) (6,214) (6,764) (18,280) 11,473 Amortization of debt financing costs(1) 722 759 2,927 2,984Provision/benefit for income taxes, net of changes in deferred taxes (539) (1,188) (1,481) (1,486)Changes in working capital (7,825) (1,612) (15,307) (1,476)Cash provided by operating activities 11,202 11,625 55,307 54,035Changes in working capital 7,825 1,612 15,307 1,476Maintenance capital expenditures (3,206) (3,046) (8,900) (7,027) Free cash flow 15,821 10,191 5,630 55.2 61,714 48,484 13,230 27.3_____________________NM - Not meaningful(1) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.(2) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level. 24

×