These materials are intended to be viewed in connection with the
specific earnings conference call to which they refer, an...
Disclaimer
This presentation by Macquarie Infrastructure Company LLC (MIC) is proprietary and all rights are reserved.
Any...
MIC – Cash Generation

180

Third Quarter and YTD 2013 Proportionately Combined Free Cash Flow1
165.7
165 7

160
140

Prop...
MIC – Cash Generation
Proportionately Combined Net Income, EBITDA
Excluding Non-Cash Items and Free Cash Flow
3Q 2013

$ M...
MIC – Cash Generation
Third Quarter 2013 Proportionately Combined EBITDA1 by Segment
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aáëíêáÅí båÉêÖó
QKOBO...
MIC – Performance Overview
3Q’13 - Key Elements in Results
• Underlying p p
y g proportionately Combined Free Cash Flow (P...
MIC 3Q’13 – IMTT (100%)
(
)
Operations
Underlying Trends Remain Positive
• Terminal revenue up 8 1% on average storage rat...
MIC 3Q’13 – Hawaii Gas
Operations
Slight Uplift in Volume
• Non utility volume increased by 1.9% driven by customer gains ...
MIC 3Q’13 - District Energy (100%)
gy (
)
Operations

Below Average Temperatures Reduce Consumption Revenue
• Cooler avera...
MIC 3Q’13 - Atlantic Aviation
Operations
Lower Debt/Interest Expense, Performance Improvement Drive Cash
•

Lower cash int...
MIC 3Q’13 – Solar (100%)
(
)
Operations
Cash Flow Negative as a Result of Acquisition-Related Costs
•

As of October 8 201...
MIC – Debt Profile, Maturity
Profile

Weighted Average Debt Maturity of 5.7 Years1
$600,000

($ 000)

$500,000
$400,000

A...
MIC – Debt Profile, Balance
Profile

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Business

Maturity

Amount 2
($000)

1

We...
Appendix: R
A
di Reconciliation of Segment Financiall Data,
ili ti
fS
t Fi
i D t
Third Quarter 2013
International Matex Tank Terminals (100%)
International-Matex

Q uarter Ended
September 30,
2013
$
R evenue
Terminal reven...
International Matex Tank Terminals (100%)
International-Matex
Q uarter Ended
Q uarter Ended
September 30,
September 30,
20...
Hawaii Gas
Q uarter E nded
September 30,
2013
$

2012
$

Nine Months Ended
September 30,
Change
Favorable/(Unfavorable)
20...
Hawaii Gas
Q uarter E nded
September 30,
2013
$

Nine Months Ended
September 30,

2012
$

Change
Favorable/(Unfavorable)
2...
District Energy (100%)
Q ua rter Ended
September 30,
2013
$

2012
$

Nine Months E nded
September 30,
Change
Favorable/(Un...
District Energy (100%)
Q ua rter Ended
September 30,
2013
$

Nine Months E nded
September 30,

2012
$

Change
Favorable/(U...
Atlantic Aviation
Quarter Ended
September 30,
2013
$
Revenue
Fuel revenue
Non-fuel revenue
Total revenue
Cost of revenue
C...
Atlantic Aviation
Quarter Ended
September 30,
2013
$

Nine Months Ended
September 30,

2012
$

Change
2013
Favorable/(Unfa...
MIC Solar (100%)
Q uarter Ended
September 30,

Nine Months E nded
September 30,

2013
2013
$
$
($ In Thousands) (Unaudited...
Corporate

Nine Months Ended
September 30,

Q uarter E nded
September 30,
2013
$

Base management fees
Performance fees
Se...
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Third Quarter 2013 Earnings Call

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Third 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 Third Quarter Earnings Conference Call Support Slides October 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 180 Third Quarter and YTD 2013 Proportionately Combined Free Cash Flow1 165.7 165 7 160 140 Proportionately Combined Free Cash Flow: 128.3 128 3 $ Millions 120 100 80 60 57.0 40.8 40 20 0 3Q'13 1 2 3Q'12 2 YTD'13 YTD'12 2 $3.28 / share for nine $ months ended p September 30, 2013 vs. $2.76/ share for nine months ended September 30, 20122 Includes 50% equity interest in IMTT, 50.01% controlling interest in District Energy and controlling interest in MIC Solar Excludes interest rate swap breakage costs of $8.7 million incurred by MIC’s Hawaii Gas business in the third quarter of 2012 3
  4. 4. MIC – Cash Generation Proportionately Combined Net Income, EBITDA Excluding Non-Cash Items and Free Cash Flow 3Q 2013 $ Millions 3Q 2012 YTD 2013 YTD 2012 Net Income 10.5 (1.8) 18.7 25.4 EBITDA ex Non-cash Non cash Items 85.1 8 1 76.6 66 252.4 227.1 Free Cash Flow1 57.0 40.8 165.7 128.3 Consolidated Net Income (Loss), EBITDA Excluding Non-Cash Items and Free Cash Flow $ Millions 3Q 2013 3Q 2012 YTD 2013 YTD 2012 Net Income2 10.4 (1.9) 15.4 23.4 EBITDA ex Non-cash Non cash Items 68.7 68 7 59.7 59 7 183.1 183 1 173.4 1 34 Free Cash Flow 54.5 29.0 145.4 153.2 1 Excludes 2 interest rate swap breakage costs incurred by MIC’s Hawaii Gas business in the third quarter of 2012 Net income (loss) attributable to MIC LLC excludes net loss attributable to noncontrolling interests of $2.2 million and $1.4 million for the quarter and nine months ended September 30, 2013, respectively, and net income attributable to noncontrolling interests of $1.8 million and $2.8 million for the quarter and nine months ended September 30, 2012, respectively. 4
  5. 5. MIC – Cash Generation Third Quarter 2013 Proportionately Combined EBITDA1 by Segment aáëíêáÅí=båÉêÖó aáëíêáÅí båÉêÖó QKOBO ^íä~åíáÅ=^îá~íáçå QQKOB fåíÉêå~íáçå~äJ j~íÉñ=q~åâ= qÉêãáå~äë O PSKTB PS TB e~ï~áá=d~ë e~ï~áá d~ë NQKVB Excludes non-operating holding company loss and MIC Solar loss of $1.1 million and $470,000, respectively. See 3Q’13 earnings press release for reconciliation of net income (loss) to EBITDA 2 Represents MIC’s 50% interest in IMTT and 50.01% interest in District Energy 1 5
  6. 6. MIC – Performance Overview 3Q’13 - Key Elements in Results • Underlying p p y g proportionately Combined Free Cash Flow (PCFCF) up 40% per y ( ) p p share versus prior comparable period • Increase in terminal revenue and capacity at IMTT • Lower interest expense driven by lower average cost of debt and reduced debt levels primarily at Atlantic Aviation • Improved gross profit at Atlantic Aviation • Cash dividend of $0.875 ($3.50 annualized) per share declared • Record date: November 11, 2013 • Payable date: November 14, 2013 • Per share metrics reflect 6.4 million (13.6%) increase in weighted average shares outstanding as a result of a public equity offering conducted by the Company in May 2013 as well as management and performance fees settled in shares during the past year MIC reiterates guidance for proportionately combined Free Cash Flow of $4.10 to $4.20 per share for full year 2013 6
  7. 7. MIC 3Q’13 – IMTT (100%) ( ) Operations Underlying Trends Remain Positive • Terminal revenue up 8 1% on average storage rate increases of 2.1% and 8.1% 2 1% revenue from ancillary services increases of 19.4% • Capacity utilization declined to 92.9% from 93.3% due to one 500,000 barrel p y , tank being off-line for cleaning and inspection – tank returned to service in October and a second 500,000 barrel tank was taken off-line • Terminal operating costs were higher primarily due to higher labor costs and increased fuel costs from product heating (which are offset in revenue), partially y p offset by lower repairs and maintenance costs • After spiking in the second quarter of the year, maintenance capital expenditures decreased to $14.5 million in the third quarter • Free cash flow increased 30.7% to $33.2 million versus $25.4 million in the prior comparable quarter primarily on growth in EBITDA 7
  8. 8. MIC 3Q’13 – Hawaii Gas Operations Slight Uplift in Volume • Non utility volume increased by 1.9% driven by customer gains partially offset Non-utility 1 9% by a significant customer being offline during the quarter • Non-utility contribution margin increased 1.0% to $15.7 million • Volume sold by the utility business increased by 0.1% • Utility contribution margin increased 1.2% to $9.4 million • The combined volume of utility and non-utility gas sold increased 0.9% • The Free Cash Flow generated by Hawaii Gas increased to $9.2 million from ($440,000) in the third quarter of 2012 primarily as a result of the interest rate swap breakage costs incurred in 2012 and not in 2013 and a decrease in the business’ tax provision • Excluding the impact of the swap break costs, underlying Free Cash Flow grew by 10 8% Fl b 10.8% 8
  9. 9. MIC 3Q’13 - District Energy (100%) gy ( ) Operations Below Average Temperatures Reduce Consumption Revenue • Cooler average temperatures in the third quarter of 2013 v. the third quarter of 2012 results in a decrease in consumption gross profit • Capacity revenue increased 3.0% to $5.8 million with CPI escalators and the addition of new customers • Dispute with terminating customer ongoing — business seeking recovery of unamortized lease principal through mediation expected to commence prior to year end • Free cash flow decreased 7.4% to $5.0 million on reduced consumption, partially offset by a decrease in maintenance capital expenditures 9
  10. 10. MIC 3Q’13 - Atlantic Aviation Operations Lower Debt/Interest Expense, Performance Improvement Drive Cash • Lower cash interest expense excluding interest rate swap breakage fees, fees down $6.8 million versus 2012 due to: • Decrease in cost of debt resulting from expiration of swap contracts • Reduction in debt levels resulting from refinance • The volume of GA fuel sold increased by 3.5% and the average margin on GA fuel sales increased 1.2% 1 2% • Non-fuel gross profit increased 8.9% primarily due to an increase in hangar and office rental revenue of 6 1% 6.1% • Free Cash Flow increased 74.1% to $30.8 million on lower debt/interest p , p p g p expense, improved operating results and lower maintenance capital expenditures 10
  11. 11. MIC 3Q’13 – Solar (100%) ( ) Operations Cash Flow Negative as a Result of Acquisition-Related Costs • As of October 8 2013 MIC Solar has invested in five solar photovoltaic power 8, 2013, generation facilities capable of generating 57 megawatts • MIC Solar’s two operating facilities performed as anticipated during the third quarter, were cash flow positive • Generated Free Cash Flow of approximately ($689,000) due to expenses iincurred related t th acquisition of th d l t d to the i iti f three f iliti currently under facilities tl d development 11
  12. 12. MIC – Debt Profile, Maturity Profile Weighted Average Debt Maturity of 5.7 Years1 $600,000 ($ 000) $500,000 $400,000 Atlantic Aviation 2 Hawaii Gas $300,000 District Energy 2 $200,000 IMTT $100,000 $$ 2013 1 2 2014 2015 2016 2017 2018 2019 2020+ Excludes $82.9 million of fully amortizing debt associated with MIC Solar’s two operating facilities and $32.6 million of MIC Solar construction debt Assumes current balance on all facilities at September 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=QKQB Business Maturity Amount 2 ($000) 1 Weighted Average All-in All in Rate 1,3 Atlantic Aviation 31-May-20 469,193 4.70% Hawaii Gas 08-Aug-17 180,000 3.63% District Energy 27-Sep-14 157,987 6.01% IMTT 15-Feb-18 940,600 4.23% MIC Solar 25-Jan-34 82,938 82 938 4.15% 4 15% 4 Reflects primary facilities Reflects outstanding balance on all facilities at September 30, 2013 30 3 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) 4 Reflects weighted average maturity of the two solar operating facilities’ term loans 1 2 13
  14. 14. Appendix: R A di Reconciliation of Segment Financiall Data, ili ti fS t Fi i D t Third Quarter 2013
  15. 15. International Matex Tank Terminals (100%) International-Matex Q uarter Ended September 30, 2013 $ R evenue 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 Generall and administrative expenses G d d i i i Depreciation and amortization Casualty losses, net(1) Operating income Interest expense, net(2) Other income Provision for income taxes Noncontrolling interest Net income _____________________ NM - Not meaningful 120,560 5,887 126,447 50,371 5,201 55,572 70,189 686 70,875 8,084 8 084 19,051 200 43,540 (9,376) 620 (15,181) (44) 19,559 Nine Months Ended September 30, 2012 $ 111,532 7,069 118,601 49,509 5,913 55,422 62,023 1,156 63,179 7,605 60 16,992 38,582 (10,533) 417 (11,631) (451) 16,384 Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % 9,028 (1,182) 7,846 8.1 (16.7) 6.6 361,412 22,341 383,753 332,316 18,052 350,368 29,096 4,289 33,385 8.8 23.8 9.5 (862) 712 (150) 8,166 (470) 7,696 (479) (4 9) (2,059) (200) 4,958 1,157 203 (3,550) 407 3,175 (1.7) 12.0 (0.3) 13.2 (40.7) 12.2 (6.3) (6 3) (12.1) NM 12.9 11.0 48.7 (30.5) 90.2 19.4 145,581 18,661 164,242 215,831 3,680 219,511 24,420 24 420 56,109 6,700 132,282 (17,099) 1,804 (48,894) (220) 67,873 141,886 15,515 157,401 190,430 2,537 192,967 22,405 22 40 51,016 119,546 (28,914) 1,680 (37,867) (636) 53,809 (3,695) (3,146) (6,841) 25,401 1,143 26,544 (2,015) (2 01 ) (5,093) (6,700) 12,736 11,815 124 (11,027) 416 14,064 (2.6) (20.3) (4.3) 13.3 45.1 13.8 (9.0) (9 0) (10.0) NM 10.7 40.9 7.4 (29.1) 65.4 26.1 (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 nine months ended September 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 nine months ended September 30, 2013. The classification of capital expenditures as either growth or maintenance is the subject of ongoing review and discussions between MIC and its co-investor in IMTT. 15
  16. 16. International Matex Tank Terminals (100%) International-Matex Q uarter Ended Q uarter Ended September 30, September 30, 2013 2013 $$ Nine Months Ended Nine Months Ended September 30, September 30, 2012 2012 $$ Change Change Favorable/(Unfavorable 2013 Favorable/(Unfavorable) 2013 % $ $ $$ % ($($ In Thousands) (Unaudited) In Thousands) (Unaudited) 2012 2012 $$ Change Change Favorable/(Unfavorabl Favorable/(Unfavorable) $$ %% 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 EBITDA excluding non-cash items Interest e pense Inte est 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 iin working capitall Ch ki it Maintenance capital expenditures(3) Free cash flow 19,559 9,376 15,181 19,051 19 051 200 253 63,620 16,384 10,533 11,631 16,992 16 992 369 55,909 63,620 (9,376) (9 376) (1,768) 824 (5,624) 9,119 56,795 (9,119) (9 119) (14,514) 33,162 55,909 (10,533) (10 533) 461 805 (5,962) 5,382 46,062 (5,382) (5 382) (15,303) 25,377 7,711 7,785 13.8 67,873 17,099 48,894 56,109 56 109 6,700 429 197,104 53,809 28,914 37,867 51,016 51 016 647 172,253 24,851 14.4 30.7 197,104 (17,099) (17 099) (15,784) 1,990 (13,847) 4,035 156,399 (4,035) (4 035) (60,513) 91,851 172,253 (28,914) (28 914) 98 2,419 (14,565) 17,680 148,971 (17,680) (17 680) (30,756) 100,535 (8,684) (8.6) _____________________ NM - Not meaningful ( ) (1) Casualty losses, net, includes $2.5 million and $1.5 million related to the q y quarters ended December 31, 2012 and March 31, 2013, respectively, which were recorded in terminal operating costs in those p y p g periods. These amounts have been included in the nine months ended September 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 nine months ended September 30, 2013. The classification of capital expenditures as either growth or maintenance is the subject of ongoing review and discussions between MIC and its co-investor in IMTT. 16
  17. 17. Hawaii Gas Q uarter E nded September 30, 2013 $ 2012 $ Nine Months Ended September 30, Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % Contribution margin Revenue - non-utility 28,488 26,894 1,594 5.9 88,993 88,271 722 0.8 Cost of revenue - non-utility 12,838 11,393 (1,445) (12.7) 39,525 40,520 995 2.5 Contribution margin - non-utility 15,650 15,501 149 1.0 49,468 47,751 1,717 3.6 Revenue - utility 32,981 35,535 (2,554) (7.2) 104,095 110,656 (6,561) (5.9) Cost f C t of revenue - utility tilit 23,534 23 534 26,202 26 202 2,668 2 668 10.2 10 2 74,914 74 914 81,568 81 568 6,654 6 654 8.2 82 Contribution margin - utility 9,447 9,333 114 1.2 29,181 29,088 93 0.3 Total contribution margin 25,097 24,834 263 1.1 78,649 76,839 1,810 2.4 Production 2,737 2,819 82 2.9 8,119 6,952 (1,167) (16.8) 5,121 5,339 218 4.1 15,727 709 4.3 Transmission and distribution(1) 16,436 G ross profit 17,239 16,676 563 3.4 54,803 53,451 1,352 2.5 Selling, gene al Selling general and administrative e penses administ ati e expenses 4,818 4 818 4,760 4 760 (58) (1.2) (1 2) 16,139 16 139 14,575 14 575 (1,564) (1 564) (10.7) (10 7) Depreciation and amortization 2,160 1,965 (195) (9.9) 6,508 5,808 (700) (12.1) O perating income 10,261 9,951 310 3.1 32,156 33,068 (912) (2.8) (2,097) (5,695) 3,598 63.2 (5,040) 4,062 44.6 Interest expense, net(2) (9,102) Other expense (146) (153) 7 4.6 (251) (285) 34 11.9 Provision for income taxes (3,191) (1,631) (1,560) (95.6) (10,669) (9,343) (1,326) (14.2) 4,827 4 827 2,472 2 472 2,355 2 355 95.3 95 3 16,196 16 196 14,338 14 338 1,858 1 858 13.0 13 0 Net income (3 ) _____________________ NM - Not meaningful (1) For the nine months ended September 30, 2013, transmission and distribution includes non-cash income of $489,000 for asset retirement obligation credit. This non-cash income is excluded when calculating EBITDA excluding non-cash items. (2) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage 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. expense Inc level 17
  18. 18. Hawaii Gas Q uarter E nded September 30, 2013 $ Nine Months Ended September 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 p Depreciation and amortization Other non-cash expenses(1) EBITDA excluding non-cash items 4,827 2,097 3,191 2,160 , 604 12,879 2,472 5,695 1,631 1,965 , 869 12,632 EBITDA excluding non-cash items Interest expense, net(2) Interest rate swap breakage fees(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 Maintenance capital expenditures Free cash flow 12,879 (2,097) 269 113 (94) (3,023) 8,047 3,023 3 023 (1,916) 9,154 12,632 (5,695) (8,701) (8 701) 4,386 507 (1,513) 4,822 6,438 (4,822) (4 822) (2,056) (440) 247 2.0 16,196 5,040 10,669 6,508 , 1,592 40,005 14,338 9,102 9,343 5,808 , 2,671 41,262 40,005 (5,040) (426) 342 (3,961) (3,810) 27,110 3,810 3 810 (5,337) 25,583 41,262 (9,102) (8,701) (8 701) 3,089 746 (5,888) 1,117 22,523 (1,117) (1 117) (5,241) 16,165 (1,257) (3.0) 9,594 NM 9,418 58.3 _____________________ NM - Not meaningful (1) For the nine months ended September 30, 2013, transmission and distribution includes non-cash income of $489,000 for asset retirement obligation credit. This non-cash income is excluded when calculating EBITDA excluding non-cash items non cash items. (2) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage 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. 18
  19. 19. District Energy (100%) Q ua rter Ended September 30, 2013 $ 2012 $ Nine Months E nded September 30, Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) $ 2012 $ Cooling capacity revenue 5,780 5,613 167 3.0 17,197 Cooling consumption revenue 9,114 10,490 (1,376) (13.1) 16,282 Other revenue 692 702 (10) (1.4) 2,139 Finance lease revenue 817 1,119 (302) (27.0) 2,779 Total revenue 16,403 16 403 17,924 17 924 (1,521) (1 521) (8.5) (8 5) 38,397 38 397 Direct expenses — electricity 5,733 5,901 168 2.8 10,360 4,787 5,237 450 8.6 14,821 Direct expenses — other(1) Direct expenses — total 10,520 11,138 618 5.5 25,181 Gross profit 5,883 6,786 (903) (13.3) 13,216 Selling, general and administrative expenses 935 823 (112) (13.6) 2,698 Amortization of intangibles 329 345 16 4.6 997 Loss from customer contract termination 1,626 Operating income 4,619 5,618 (999) (17.8) 7,895 (1,275) (2,065) 790 38.3 (3,793) Interest expense, net(2) Other income 672 436 236 54.1 803 Provision for income taxes (1,584) (1,560) (24) (1.5) (1,797) Noncontrolling interest (174) (203) 29 14.3 (545) Net income 2,258 2,226 32 1.4 2,563 _____________________ NM - Not meaningful (1) Includes depreciation expense of $1.6 million and $5.0 million for the quarter and nine months ended September 30, 2013, respectively, and $1.7 million and $5.0 million ended September 30, 2012, respectively. (2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing fees. 16,675 20,853 2,023 3,448 42,999 42 999 12,587 14,866 27,453 15,546 2,675 1,027 11,844 (6,521) 568 (2,171) (622) 3,098 Change Favorable/(Unfavorable) $ % 522 (4,571) 116 (669) (4,602) (4 602) 2,227 45 2,272 (2,330) (23) 30 (1,626) (3,949) 2,728 235 374 77 (535) 3.1 (21.9) 5.7 (19.4) (10.7) (10 7) 17.7 0.3 8.3 (15.0) (0.9) 2.9 NM (33.3) 41.8 41.4 17.2 12.4 (17.3) for the quarter and nine months 19
  20. 20. District Energy (100%) Q ua rter Ended September 30, 2013 $ Nine Months E nded September 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 Interest expense, net(2) Provision for income taxes p Depreciation(1) Amortization of intangibles Loss from customer contract termination Other non-cash expenses EBITDA excluding non-cash items 2,258 1,275 1,584 1,620 329 205 7,271 2,226 2,065 1,560 1,685 345 156 8,037 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 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 7,271 (1,275) (1,371) 177 740 (529) (192) 4,821 192 (63) 4,950 8,037 (2,065) (589) 177 885 (619) 419 6,245 (419) (478) 5,348 (766) (9.5) 2,563 3,793 1,797 5,021 997 1,626 413 16,210 3,098 6,521 2,171 , 5,036 1,027 425 18,278 16,210 (3,793) (4,018) 531 2,814 (805) (2,379) 8,560 2,379 (312) 10,627 18,278 (6,521) (1,458) 522 2,595 (892) (1,453) 11,071 1,453 (642) 11,882 (2,068) (11.3) (398) (7.4) (1,255) (10.6) _____________________ NM - Not meaningful (1) Includes depreciation expense of $1.6 million and $5.0 million for the quarter and nine months ended September 30, 2013, respectively, and $1.7 million and $5.0 million for the quarter and nine months $1 6 $5 0 30 2013 respectively $1 7 $5 0 ended September 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 Quarter Ended September 30, 2013 $ Revenue Fuel revenue Non-fuel revenue Total revenue Cost of revenue Cost of revenue-fuel e en e f el Cost of revenue-non-fuel Total cost of revenue Fuel gross profit Non-fuel gross profit Gross profit Nine Months Ended September 30, 2012 $ Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) 2012 $ Change Favorable/(Unfavorable) $ % 141,032 42,166 183,198 139,491 39,409 178,900 1,541 2,757 4,298 1.1 7.0 2.4 417,305 124,535 541,840 420,197 120,502 540,699 (2,892) 4,033 1,141 (0.7) 3.3 0.2 97,050 97 050 3,503 100,553 43,982 38,663 82,645 44,342 44 342 14,072 50 24,181 (11,481) 54 (5,185) 7,569 96,925 96 925 3,906 100,831 42,566 35,503 78,069 43,983 43 983 14,086 (1,706) 21,706 (7,381) ( ) (10) (6,531) 7,784 (125) 403 278 1,416 3,160 4,576 (359) 14 (1,756) 2,475 (4,100) 64 1,346 (215) (0.1) (0 1) 10.3 0.3 3.3 8.9 5.9 (0.8) (0 8) 0.1 (102.9) 11.4 (55.5) NM 20.6 (2.8) 289,873 289 873 11,849 301,722 127,432 112,686 240,118 130,729 130 729 41,917 226 67,246 (20,206) (2,472) 54 (18,009) 26,613 295,800 295 800 14,036 309,836 124,397 106,466 230,863 130,830 130 830 41,761 (1,379) 59,651 (23,448) 38 (15,815) 20,426 5,927 5 927 2,187 8,114 3,035 6,220 9,255 101 (156) (1,605) 7,595 3,242 (2,472) 16 (2,194) 6,187 2.0 20 15.6 2.6 2.4 5.8 4.0 0.1 01 (0.4) (116.4) 12.7 13.8 NM 42.1 (13.9) 30.3 Selling, Selling general and administrative expenses Depreciation and amortization Loss (gain) on disposal of assets Operating income Interest expense, net(1) Loss on extinguishment of debt ( p ) Other income (expense) Provision for income taxes Net income (2 ) _____________________ 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. 21
  22. 22. Atlantic Aviation Quarter Ended September 30, 2013 $ Nine Months Ended September 30, 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 p Depreciation and amortization Loss on extinguishment of debt (Gain) loss on disposal of assets Other non-cash income EBITDA excluding non-cash items 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 7,569 11,481 5,185 14,072 , (1) 38,306 7,784 7,381 6,531 14,086 , (1,850) (39) 33,893 38,306 (11,481) 5,551 702 (394) (3,609) 29,075 3,609 (1,910) 30,774 33,893 (7,381) (95) (5,567) 663 (997) 1,904 22,420 (1,904) (2,837) 17,679 4,413 13.0 26,613 20,206 18,009 41,917 , 2,434 106 (116) 109,169 20,426 23,448 15,815 41,761 , (1,803) (268) 99,379 9,790 9.9 109,169 (20,206) 5,604 2,011 (5,569) 1,284 92,293 (1,284) (5,248) 85,761 99,379 (23,448) (595) (16,015) 2,022 (1,972) 2,549 61,920 (2,549) (7,949) 51,422 34,339 66.8 13,095 74.1 _____________________ 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. MIC Solar (100%) Q uarter Ended September 30, Nine Months E nded September 30, 2013 2013 $ $ ($ In Thousands) (Unaudited) Contracted revenue Cost of revenue Gross profit 2,649 396 2,253 7,167 1,058 6,109 Selling, general and administrative expenses Depreciation Operating loss 2,296 2,096 (2,139) 2,875 5,174 (1,940) Interest expense, net(1) Other income, net Benefit (provision) for income taxes B fit ( i i )f i t Noncontrolling interest Net income (897) 248 27 4,010 1,249 (2,121) 2,353 (1,175) (1 175) 4,125 1,242 Net income Interest expense, net(1) (Benefit) provision for income taxes Depreciation Other non-cash income EBITDA excluding non-cash items 1,249 897 (27) 2,096 (4,010) 205 1,242 2,121 1,175 5,174 (6,555) 3,157 EBITDA excluding non-cash items Interest expense, net(1) Amortization of debt financing costs(1) Changes in working capital Cash used in operating activities Changes in working capital Free cash flow 205 (897) 3 (1,256) (1,945) 1,256 1 256 (689) 3,157 (2,121) 8 (15,954) (14,910) 15,954 15 954 1,044 Reconciliation of net income to EBITDA excluding non-cash items: _____________________ (1) Interest expense, net, includes non-cash amortization of deferred financing fees.
  24. 24. Corporate Nine Months Ended September 30, Q uarter E nded September 30, 2013 $ Base management fees Performance fees Selling, general and administrative expenses Operating loss Interest income Other expense, net Benefit for income taxes Noncontrolling interest Net loss (1 ) 2012 $ 8,336 6,906 1,278 (16,520) 22 4,104 (1,678) (14,072) 5,844 23,509 2,005 (31,358) 107 (23) 11,480 (1,556) (21,350) (14,072) (22) (4,104) 8,336 6,906 1,862 1 862 (1,094) (21,350) (107) (11,480) 5,844 23,509 1,709 1 709 (1,875) (1,094) 22 218 373 (481) (373) (854) (1,875) 107 1,216 (1,788) (1 788) (2,340) 1,788 (552) Change Favorable/(Unfavorable) 2013 $ % $ ($ In Thousands) (Unaudited) (2,492) 16,603 727 14,838 (85) 23 (7,376) (122) 7,278 2012 $ Change Favorable/(Unfavorable) $ % (42.6) 70.6 36.3 47.3 (79.4) 100.0 (64.3) (7.8) 34.1 23,524 53,388 4,987 (81,899) 152 (16) 22,409 (2,157) (61,511) 15,599 23,509 9,221 (48,329) 111 (75) 12,631 (2,144) (37,806) (7,925) (29,879) 4,234 (33,570) 41 59 9,778 (13) (23,705) (50.8) (127.1) 45.9 (69.5) 36.9 78.7 77.4 (0.6) (62.7) 41.7 (61,511) (152) (22,409) 23,524 53,388 2,697 2 697 (4,463) (37,806) (111) (12,631) 15,599 23,509 2,592 2 592 (8,848) 4,385 49.6 (4,463) 152 7,661 (7,668) (7 668) (4,318) 7,668 3,350 (8,848) 111 4,513 (4,627) (4 627) (8,851) 4,627 (4,224) 7,574 179.3 Reconciliation of net loss to EBITDA excluding non-cash items: Net loss(1) Interest income Benefit for income taxes Base management fees to be settled/settled in LLC interests Performance fees to be settled/settled in LLC interests Other non-cash expense non cash EBITDA excluding non-cash items EBITDA excluding non-cash items Interest income Benefit for income taxes, net of changes in deferred taxes Changes in working capital Cash used in operating activities Changes in working capital Free cash flow 781 (302) (54.7) _____________________ (1) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are eliminated on consolidation. 24
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