Second Quarter 2013 Earnings Call

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Second Quarter 2013 Earnings Call

  1. 1. These materials are intended to be viewed in connection with the specific earnings conference call to which they refer, and are qualified in their entirety by reference to that earnings conference call and to the Company’s underlying report on Form 10-Q and Company s 10 Q Form 10-K. Macquarie Infrastructure Company Second Quarter Earnings Conference Call Support Slides August 2013
  2. 2. Disclaimer This presentation by Macquarie Infrastructure Company LLC (MIC) is proprietary and all rights are reserved. Any reproduction, in whole or in part, without the prior written consent of Macquarie Infrastructure Company 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 information purposes, it is not a solicitation of any offer to buy or sell any security or instrument. This Thi presentation contains f t ti t i forward-looking statements. F d l ki t t t Forward-looking statements iin thi presentation are d l ki t t t this t ti 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 g p appears under the caption “Risk Factors” in our Form 10-K and Form 10-Q. 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. “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 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 MIC. 2
  3. 3. MIC – Cash Generation Second Quarter and YTD 2013 Proportionately Combined Free Cash Flow1 120 106.8 100 87.5 $ Millions 80 60 46.7 2Q'12 $2.17 / share at 1H’13 $ vs. $1.88 / share at 1H’12 43.5 2Q'13 Proportionately Combined Free Cash Flow: 40 20 0 1 1H'13 Includes 50% equity interest in IMTT and 50.01% controlling interest in District Energy 1H'12 3
  4. 4. MIC – Cash Generation Proportionately Combined Net Income, EBITDA Excluding Non-Cash Items and Free Cash Flow 2Q 2013 $ Millions 2Q 2012 1H 2013 1H 2012 0.4 11.9 7.3 27.2 EBITDA ex Non-cash Non cash Items 82.6 82 6 75.2 2 168.8 150.4 Free Cash Flow 46.7 43.5 106.8 87.5 Net Income Consolidated Net (Loss) Income, EBITDA Excluding Non-Cash Items and Free Cash Flow $ Millions 2Q 2013 2Q 2012 1H2013 1H2012 Net Income1 11.1 5.0 25.2 EBITDA ex Non-cash Non cash Items 59.0 59 0 66.1 66 1 114.4 114 4 113.7 113 Free Cash Flow 1 (0.8) 44.2 97.8 88.2 124.1 Net (loss) income attributable to MIC LLC excludes net loss attributable to noncontrolling interests of $108,000 and net income attributable to noncontrolling interests of $735,000 for the quarter and six months ended June 30, 2013, respectively, and net income attributable to noncontrolling interests of $890,000 and $1.0 million for the quarter and six months ended June 30, 2012, respectively. 4
  5. 5. MIC – Cash Generation Second Quarter 2013 Proportionately EBITDA1 by Segment International-Matex Tank Terminals2 41% Hawaii Gas 14% District Energy2 3% Atlantic Aviation 42% 1 2 Excludes non-operating holding company results. See 2Q’13 earnings press release for reconciliation of net income (loss) to EBITDA Represents MIC’s 50% interest in IMTT and 50.01% interest in District Energy 5
  6. 6. MIC – Performance Overview 2Q’13 - Key Elements in Results • Proportionately Combined Free Cash Flow (PCFCF) down $0 01 per share $0.01 • Improved operating results at IMTT, Atlantic Aviation • Lower interest expense at Atlantic Aviation and Hawaii Gas • Improvement partially offset by increased maintenance capital expenditures at IMTT, reduced contribution margin at Hawaii Gas • Cash dividend of $0.875 ($3.50 annualized) per share declared • Record date: August 12, 2013 • Payable date: August 15, 2013 • Per share metrics reflect 4.4 million (9.4%) increase in weighted average shares outstanding as a result of management and performance fees settled in shares and equity offering conducted in May, 2013 MIC reiterates guidance for proportionately combined Free Cash Flow of it t id f ti t l bi d F C h Fl f $4.10 to $4.20 per share for full year 2013 6
  7. 7. MIC 2Q’13 – IMTT Operations Underlying Trends Remain Positive • Terminal revenue up 9 5% on average storage rate increases of 6.5% 9.5% 6 5% • Capacity utilization increased sequentially to 92.9% from 92.7% • T Terminall operating costs lower in the quarter on reduced repair and i ti t l i th t d d i d maintenance costs, partially offset by higher healthcare costs and higher fuel costs related to product heating • Maintenance capital expenditures increased to $26.9 million from $7.3 million on Hurricane Sandy related activities, scope expansion and new projects • Free cash flow declined 34.6% versus prior comparable quarter primarily on higher maintenance capital expenditures and higher taxes, partially offset by growth in EBITDA MIC reiterates guidance f EBITDA at IMTT in a range of between $260.0 i id for i fb $260 0 and $270.0 million for full year 2013 7
  8. 8. MIC 2Q’13 – Hawaii Gas Operations Decline in Consumption Impact Results • Volume of gas sold decreased 2.9% versus prior comparable period • Anticipating LPG supply chain issues has proved challenging • Kauai resort offline during quarter • Aggregate contribution margin declined 5.0% • Free cash flow decreased 24 5% versus prior comparable period on lower 24.5% contribution margin and higher maintenance capital expenditures, partially offset by lower interest expense and lower taxes MIC reiterates guidance for EBITDA at Hawaii Gas in a range of between g g $57.0 and $63.0 million for full year 2013 8
  9. 9. MIC 2Q’13 - District Energy gy Operations Below Average Temperatures Reduce Consumption Revenue • Cooler spring in 2013 v. 2012 results in decrease in consumption gross profit • Capacity gross profit increased with CPI escalators addition of new customers escalators, • Dispute with terminating customer ongoing; business seeking recovery of p p g unamortized lease principal through mediation in October • Free cash flow declined $0.2 million to $3.6 million on reduced consumption MIC reiterates guidance for EBITDA at District Energy of $20.0 million for full year 2013 9
  10. 10. MIC 2Q’13 - Atlantic Aviation Operations Lower Debt/Interest Expense, Performance Improvement Drive Cash • Lower cash interest expense down $8 5 million versus 2012 due to expense, $8.5 • Decrease in cost of debt resulting from expiration of swap contracts • Reduction in debt levels resulting from refinance • Leverage ratio reduced to 3.3x at June 30 from 5.3x at March 31 • Fuel gross profit up 5.0% on 2.9% volume growth (same store) and 3.6% g p (same store) ) margin expansion ( • Free Cash Flow increased 79.9% on lower debt/interest expense, improvements in volume/margin MIC reiterates guidance for EBITDA at Atlantic Aviation in a range of g g between $137.0 and $145.0 million for full year 2013 10
  11. 11. MIC – Refinancing of Atlantic Aviation Refinancing Terms • Debt reduced using $217 8 million of net proceed from equity offering in May $217.8 • New debt facilities obtained • 7-year, $ $465 million, senior secured term loan, L+2.50% • 5-year, $70 million, revolving credit facility, L+2.50% • Senior secured facility fully drawn at closing, proceeds used to fully repay outstanding balance on prior facility • Senior secured facility hedged (effective July 31) using 6-year swap of LIBOR for fixed 2.198%, resulting in all-in cost of debt of 4.698% • Revolving credit facility undrawn and unhedged at June 30 11
  12. 12. MIC – Debt Profile, Maturity Profile Weighted Average Debt Maturity of 5.7 Years1 $1,000,000 ($ 000) 0 $750,000 2 Atlantic Aviation Hawaii Gas $500,000 2 District Energy IMTT $250,000 $$ 2013 2014 2015 2016 2017 2018 2019 2020 1 2 Excludes $89.2 million of amortizing debt associated with MIC Solar. Assumes current balance on all facilities at June 30, 2013, does not reflect future draws or mandatory repayments with excess cash flow 12
  13. 13. MIC – Debt Profile, Balance Profile tÉáÖÜíÉÇ=^îÉê~ÖÉ=^ääJfå=aÉÄí=`çëí=çÑ=QKRBN Maturity2 atu ty Amount3 ($000) Weighted Average All-in Rate 2,4 All i R 2 4 Atlantic Aviation 31-May-20 470,500 4.70% Hawaii Gas 08-Aug-17 08 Aug 17 180,000 180 000 3.63% 3 63% District Energy 27-Sep-14 159,100 5.97% IMTT 15-Feb-18 5 eb 8 9 5, 00 945,400 4.23% 3% Business us ess Excludes debt of MIC Solar Reflects primary facilities 3 Reflects outstanding balance on all facilities at June 30, 2013 4 Reflects annualized costs associated with interest on all facilities including, interest rate hedges (excludes non-cash deferred financing costs, letters of credit and commitment fees) 1 2 13
  14. 14. Appendix: R A di Reconciliation of Segment Financiall Data, ili ti fS t Fi i D t Second Quarter 2013
  15. 15. International Matex Tank Terminals International-Matex Quarter Ended J une 30, 2013 $ Revenue Terminal revenue Environmental response revenue Total revenue Costs and expenses Terminal operating costs Environmental response operating costs Total operating costs Terminal gross profit Environmental response gross profit Gross profit General and administrative expenses Depreciation and amortization D i ti d ti ti Casualty losses, net(1) Operating income Interest expense, net(2) Other income Provision for income taxes Noncontrolling iinterest N t lli t t Net income 2012 $ 119,520 6,301 125,821 109,167 4,596 113,763 44,906 5,573 50,479 74,614 728 75,342 7,854 18,636 18 636 6,500 42,352 (1,117) 442 (16,592) (101) 24,984 45,905 4,446 50,351 63,262 150 63,412 7,341 17,117 17 117 38,954 (11,790) 807 (11,869) (86) 16,016 Six Months Ended J une 30, Change 2013 Favorable/(Unfavorable) $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % 10,353 1,705 12,058 9.5 37.1 10.6 240,852 16,454 257,306 220,784 10,983 231,767 20,068 5,471 25,539 9.1 49.8 11.0 999 (1,127) (128) 11,352 578 11,930 (513) (1,519) (1 519) (6,500) 3,398 10,673 (365) (4,723) (15) 8,968 2.2 (25.3) (0.3) 17.9 NM 18.8 (7.0) (8.9) (8 9) NM 8.7 90.5 (45.2) (39.8) (17.4) (17 4) 56.0 95,210 13,460 108,670 145,642 2,994 148,636 16,336 37,058 37 058 6,500 88,742 (7,723) 1,184 (33,713) (176) 48,314 92,377 9,602 101,979 128,407 1,381 129,788 14,800 34,024 34 024 80,964 (18,381) 1,263 (26,236) (185) 37,425 (2,833) (3,858) (6,691) 17,235 1,613 18,848 (1,536) (3,034) (3 034) (6,500) 7,778 10,658 (79) (7,477) 9 10,889 (3.1) (40.2) (6.6) 13.4 116.8 14.5 (10.4) (8.9) (8 9) NM 9.6 58.0 (6.3) (28.5) 4.9 49 29.1 15
  16. 16. International Matex Tank Terminals International-Matex Q uarter Ended J une 30, 2013 $ 2012 $ Six Months Ended J une 30, Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % Reconciliation of net income to EBITDA excluding non-cash items: Net income Interest expense, net(2) Provision for income taxes Depreciation and amortization Casualty losses, net(1) Other non-cash expenses EBITDA excluding non-cash items 24,984 1,117 16,592 18,636 6,500 6 500 101 67,930 16,016 11,790 11,869 17,117 90 56,882 EBITDA excluding non-cash items Interest expense, net(2) 67,930 (1,117) (9,607) 56,882 (11,790) 2,316 11,048 19.4 48,314 7,723 33,713 37,058 6,500 6 500 176 133,484 37,425 18,381 26,236 34,024 278 116,344 133,484 (7,723) (14,016) 116,344 (18,381) (363) 17,140 14.7 Adjustments to derivative instruments recorded in interest expense(2) 500 809 1,166 1,614 Amortization of debt financing costs(2) Provision for income taxes, net of changes in deferred taxes (6,538) (3,769) (8,223) (8,603) Changes in working capital 12,303 4,683 (5,084) 12,298 Cash provided by operating activities 63,471 49,131 99,604 102,909 Changes in working capital (12,303) (4,683) 5,084 (12,298) (26,878) (7,335) (45,999) Maintenance capital expenditures(3) (15,453) Free cash flow 24,290 37,113 (12,823) (34.6) 58,689 75,158 (16,469) (21.9) _____________________ NM - Not meaningful (1) Casualty losses, net, includes $2.5 million and $1.5 million related to the quarters ended December 31, 2012 and March 31, 2013, respectively, which were recorded in terminal operating costs in those periods. These amounts have been included in the quarter and six months ended June 30, 2013. (2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. (3) Maintenance capital expenditures includes a reclassification from growth capital expenditures in the quarters ended December 31, 2012 and March 31, 2013 of $1.2 million and $509,000, respectively. These amounts have been included in the quarter and six months ended June 30, 2013. 16
  17. 17. Hawaii Gas Q uarter Ended J une 30, 2013 $ Contribution margin Revenue - non-utility Cost of revenue - non-utility Contribution margin - non-utility Revenue - utility Cost of revenue - utility Contribution margin - utility Total contribution margin Production Transmission and distribution(1) G ross profit Selling, general and administrative expenses Depreciation and amortization D i ti d ti ti O perating income Interest expense, net(2) Other expense Provision for income taxes Net income (3 ) 28,420 13,333 15,087 34,193 24,726 9,467 24,554 2,667 4,740 17,147 5,989 2,190 2 190 8,968 (1,238) (73) (2,995) 4,662 2012 $ 29,748 13,554 16,194 36,807 27,149 9,658 25,852 2,127 5,649 18,076 4,558 1,902 1 902 11,616 (1,516) (63) (3,913) 6,124 Six Months Ended J une 30, Change Favorable/(Unfavorable) 2013 $ % $ ( ($ In Thousands) (Unaudited) )( ) (1,328) 221 (1,107) (2,614) 2,423 (191) (1,298) (540) 909 (929) (1,431) (288) (2,648) 278 (10) 918 (1,462) (4.5) 1.6 (6.8) (7.1) 8.9 (2.0) (5.0) (25.4) 16.1 (5.1) (31.4) (15.1) (15 1) (22.8) 18.3 (15.9) 23.5 (23.9) 60,505 26,687 33,818 71,114 51,380 19,734 53,552 5,382 10,606 37,564 11,321 4,348 4 348 21,895 (2,943) (105) (7,478) 11,369 2012 $ 61,377 29,127 32,250 75,121 55,366 19,755 52,005 4,133 11,097 36,775 9,815 3,843 3 843 23,117 (3,407) (132) (7,712) 11,866 Change Favorable/(Unfavorable) $ % (872) 2,440 1,568 (4,007) 3,986 (21) 1,547 (1,249) 491 789 (1,506) (505) (1,222) 464 27 234 (497) (1.4) 8.4 4.9 (5.3) 7.2 (0.1) 3.0 (30.2) 4.4 2.1 (15.3) (13.1) (13 1) (5.3) 13.6 20.5 3.0 (4.2) 17
  18. 18. Hawaii Gas Q uarter Ended J une 30, 2013 $ Six Months Ended J une 30, 2012 $ Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % Reconciliation of net income to EBITDA excluding non-cash items: Net income(3) Interest expense, net(2) Provision for income taxes Depreciation and amortization Other non-cash expenses(1) EBITDA excluding non-cash items 4,662 1,238 2,995 2,190 326 11,411 6,124 1,516 3,913 1,902 995 14,450 EBITDA excluding non-cash items Interest expense, net(2) Adjustments to derivative instruments recorded in interest expense(2) Amortization of debt financing costs(2) Provision for income taxes, net of changes in deferred taxes Changes in working capital Cash provided by operating activities Changes in working capital p p Maintenance capital expenditures Free cash flow 11,411 (1,238) ( (617) ) 123 (775) 9,780 18,684 (9,780) ( (2,415) ) 6,489 14,450 (1,516) ( (832) ) 119 (2,205) (847) 9,169 847 ( (1,421) ) 8,595 (3,039) (21.0) 11,369 2,943 7,478 4,348 988 27,126 11,866 3,407 7,712 3,843 1,802 28,630 27,126 (2,943) ( (695) ) 229 (3,867) (787) 19,063 787 ( (3,421) ) 16,429 28,630 (3,407) ( , (1,297) ) 239 (4,375) (3,705) 16,085 3,705 ( (3,185) ) 16,605 (1,504) (5.3) (2,106) (24.5) (176) (1.1) _____________________ (1) For the quarter and six months ended June 30, 2013, transmission and distribution includes non-cash income of $518,000 for asset retirement obligation credit that is not expected to recur. This non-cash income is excluded when calculating EBITDA excluding non-cash items. (2) Interest expense, net,adjustments to derivative instruments and non-cash amortization of deferred financing fees. ( ) (3) 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. p p , p y y 18
  19. 19. District Energy Quarter Ended J une 30, 2013 $ Cooling capacity revenue Cooling consumption revenue Other revenue Finance lease revenue Total revenue Direct expenses — electricity Direct expenses — other(1) Direct expenses — total Gross profit Selling, general and administrative expenses Amortization of intangibles Loss from customer contract termination Operating income Interest expense, net(2) Other income Benefit (provision) for income taxes Noncontrolling interest Net (loss) income 5,757 5,207 749 907 12,620 , 3,231 5,218 8,449 4,171 874 331 1,626 1,340 (1,233) 72 1 (182) (2) 2012 $ 5,567 6,890 682 1,150 14,289 , 4,148 5,072 9,220 5,069 961 341 3,767 (2,127) 75 (621) (208) 886 Six Months Ended J une 30, Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 190 (1,683) 67 (243) ( , (1,669) ) 917 (146) 771 (898) 87 10 (1,626) (2,427) 894 (3) 622 26 (888) 3.4 (24.4) 9.8 (21.1) ( (11.7) ) 22.1 (2.9) 8.4 (17.7) 9.1 2.9 NM (64.4) 42.0 (4.0) 100.2 12.5 (100.2) 11,417 7,168 1,447 1,962 21,994 , 4,627 10,034 14,661 7,333 1,763 668 1,626 3,276 (2,518) 131 (213) (371) 305 2012 $ 11,062 10,363 1,321 2,329 25,075 , 6,686 9,629 16,315 8,760 1,852 682 6,226 (4,456) 132 (611) (419) 872 Change Favorable/(Unfavorable) $ % 355 (3,195) 126 (367) ( , (3,081) ) 2,059 (405) 1,654 (1,427) 89 14 (1,626) (2,950) 1,938 (1) 398 48 (567) 3.2 (30.8) 9.5 (15.8) ( (12.3) ) 30.8 (4.2) 10.1 (16.3) 4.8 2.1 NM (47.4) 43.5 (0.8) 65.1 11.5 (65.0) 19
  20. 20. District Energy Quarter Ended J une 30, 2013 $ Six Months Ended J une 30, 2012 $ Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) I Th d ) (U dit d) 2012 $ Change Favorable/(Unfavorable) $ % Reconciliation of net (loss) income to EBITDA excluding noncash items: Net (loss) income Interest expense, net(2) (Benefit) provision for income taxes Depreciation(1) Amortization of intangibles Loss from customer contract termination Other non-cash expenses EBITDA excluding non-cash items EBITDA excluding non-cash items Interest expense, net(2) Adjustments to derivative instruments recorded in interest expense(2) Amortization of debt financing costs(2) Equipment lease receivable, net Benefit/provision for income taxes, net of changes in deferred taxes taxes Changes in working capital Cash provided by operating activities Changes in working capital Maintenance capital expenditures Free cash flow (2) 1,233 (1) 1,703 331 1,626 197 5,087 886 2,127 621 1,677 341 240 5,892 5,087 (1,233) (1,361) 177 1,107 (73) (1,771) 1,933 1,771 (103) 3,601 5,892 (2,127) (566) 175 872 (320) (47) 3,879 47 (77) 3,849 (805) (248) (13.7) 305 2,518 213 3,401 668 1,626 208 8,939 872 4,456 611 3,351 682 269 10,241 (1,302) (12.7) (6.4) 8,939 (2,518) (2,647) 354 2,074 (276) (2,187) 3,739 2,187 (249) 5,677 10,241 (4,456) (869) 345 1,710 (273) (1,872) 4,826 1,872 (164) 6,534 (857) (13.1) _____________________ NM - Not meaningful (1) Includes depreciation expense of $1.7 million and $3.4 million for the quarter and six months ended June 30, 2013, respectively, and $1.7 million and $3.4 million for the quarter and six months ended June 30, 2012, respectively. (2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. 20
  21. 21. Atlantic Aviation Q uarter Ended J une 30, 2013 $ Revenue Fuel revenue Non-fuel revenue Total revenue Cost of revenue Cost of revenue-fuel Cost of revenue-non-fuel Total cost of revenue Fuel gross profit Non-fuel gross profit Gross profit Selling, general and administrative expenses Depreciation and amortization D i ti d ti ti Loss on disposal of assets Operating income Interest expense, net(1) Loss on extinguishment of debt Other income Provision f P i i for iincome t taxes Net income (2 ) 2012 $ Six Months Ended J une 30, Change Favorable/(Unfavorable) 2013 $ % $ ( ($ In Thousands) (Unaudited) )( ) 2012 $ Change Favorable/(Unfavorable) $ % 135,929 38,573 174,502 139,381 38,291 177,672 (3,452) 282 (3,170) (2.5) 0.7 (1.8) 276,273 82,369 358,642 280,706 81,093 361,799 (4,433) 1,276 (3,157) (1.6) 1.6 (0.9) 93,038 3,625 96,663 42,891 34,948 77,839 42,910 13,974 13 974 3 20,952 (4,626) (2,472) 4 (5,426) (5 426) 8,432 98,567 4,563 103,130 40,814 33,728 74,542 42,903 13,860 13 860 327 17,452 (7,282) 64 (4,574) (4 574) 5,660 5,529 938 6,467 2,077 1,220 3,297 (7) (114) 324 3,500 2,656 (2,472) (60) (852) 2,772 5.6 20.6 6.3 5.1 3.6 4.4 (0.8) (0 8) 99.1 20.1 36.5 NM (93.8) (18.6) (18 6) 49.0 192,823 8,346 201,169 83,450 74,023 157,473 86,387 27,845 27 845 176 43,065 (8,725) (2,472) (12,824) (12 824) 19,044 198,875 10,130 209,005 81,831 70,963 152,794 86,847 27,675 27 675 327 37,945 (16,067) 48 (9,284) (9 284) 12,642 6,052 1,784 7,836 1,619 3,060 4,679 460 (170) 151 5,120 7,342 (2,472) (48) (3,540) (3 540) 6,402 3.0 17.6 3.7 2.0 4.3 3.1 0.5 (0.6) (0 6) 46.2 13.5 45.7 NM (100.0) (38.1) (38 1) 50.6 21
  22. 22. Atlantic Aviation Six Months Ended J une 30, Quarter Ended J une 30, 2013 $ 2012 $ Change 2013 Favorable/(Unfavorable) $ % $ ($ In Thousands) (Unaudited) )( ) 2012 $ Change Favorable/(Unfavorable) $ % Reconciliation of net income to EBITDA excluding non-cash items: Net income(2) Interest expense, net(1) Provision for income taxes Depreciation and amortization Loss on extinguishment of debt Loss on disposal of assets Other non-cash income EBITDA excluding non-cash items 8,432 4,626 , 5,426 13,974 2,434 (47) 34,845 5,660 7,282 4,574 , 13,860 47 (88) 31,335 EBITDA excluding non-cash items Interest expense, net(1) Interest rate swap breakage fees(1) Adjustments to derivative instruments recorded in interest expense(1) Amortization of debt financing costs(1) Provision for income taxes, net of changes in deferred taxes Changes in working capital Cash provided by operating activities Changes in working capital Maintenance capital expenditures Free cash flow 34,845 (4,626) 28 648 (1,127) 1,735 31,503 (1,735) (3,436) 26,332 31,335 (7,282) (252) (5,834) 671 (768) 305 18,175 (305) (3,236) 14,634 3,510 11.2 19,044 8,725 12,824 , 27,845 2,434 106 (115) 70,863 12,642 16,067 9,284 , 27,675 47 (229) 65,486 5,377 8.2 70,863 (8,725) 53 1,309 (5,175) 4,893 63,218 (4,893) (4,901) 53,424 65,486 (16,067) (500) (10,448) 1,359 (975) 645 39,500 (645) (5,112) 33,743 19,681 58.3 11,698 79.9 _____________________ NM - Not meaningful (1) Interest expense, net, includes adjustments to 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. 22
  23. 23. Corporate and Other Q uarter E nded J une 30, 2013 $ Contracted revenue Cost of revenue Gross profit Base management fees Performance fees Selling, general and administrative expenses Depreciation Operating loss Interest (expense) income, net(1) ( p ) , Other (expense) income, net Benefit (provision) for income taxes Noncontrolling interest Net loss (2 ) 2,832 553 2,279 Six Months Ended J une 30, Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) ousa ds) (U aud ed) 2012 $ - 2,832 (553) 2,279 NM NM NM 4,518 662 3,856 Change Favorable/(Unfavorable) $ % 2012 $ - 4,518 (662) 3,856 NM NM NM 8,053 24,440 2,346 1,561 (34,121) (591) (317) 4,760 2,045 (6,805) 4 (28) (3,293) (24,440) (301) (1,561) (27,316) (595) (289) (69.2) NM (14.7) NM NM NM NM 15,188 46,482 4,288 3,078 (65,180) (1,094) 2,089 9,755 7,216 (16,971) 4 (52) (5,433) (46,482) 2,928 (3,078) (48,209) (1,098) 2,141 (55.7) NM 40.6 NM NM NM NM 9,510 290 (25,229) (827) (681) (8,337) 10,337 971 (16,892) NM 142.6 NM 17,103 (364) (47,446) 1,151 (588) (16,456) 15,952 224 (30,990) NM 38.1 (188.3) 23
  24. 24. Corporate and Other Q uarter E nded J une 30, 2013 $ Six Months Ended J une 30, 2012 $ Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % Reconciliation of net loss to EBITDA excluding non-cash items: Net loss(2) Interest expense (income), net(1) (Benefit) provision for income taxes p Depreciation Base management fees to be settled/settled in LLC interests Performance fees to be settled/settled in LLC interests Other non-cash (income) expense EBITDA excluding non-cash items (25,229) 591 (9,510) 1,561 8,053 24,440 (99) (193) (8,337) (4) 827 4,760 827 (1,927) EBITDA excluding non-cash items Interest (expense) income, net(1) Amortization of debt financing costs(1) Benefit/provision for income taxes, net of changes in deferred taxes Changes in working capital Cash used in operating activities Changes in working capital Adjustment to free cash flow for MIC Solar(3) Free cash flow (193) (591) 2 1,532 (17,321) (16,571) 17,321 (854) (104) (1,927) 4 1,720 (850) (1,053) 850 (203) 1,734 90.0 (47,446) 1,094 (17,103) 3,078 15,188 46,482 (1,710) (417) (16,456) (4) (1,151) 9,755 883 (6,973) (417) (1,094) 5 7,443 (22,739) (16,802) 22,739 (1,130) 4,807 (6,973) 4 3,297 (2,839) (6,511) 2,839 (3,672) 6,556 94.0 99 48.8 8,479 NM _____________________ NM - Not meaningful (1) Interest expense, net, includes non-cash amortization of deferred financing fees. (2) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation. (3) Adjustment to free cash flow for MIC Solar adjusts the free cash flow from this business to include only the cash distributions generated during the reporting period, if any. During the quarter and six months ended June 30, 2013, MIC Solar generated $390,000 and $679,000, respectively, of distributable cash. 24

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