The document provides an overview of Macquarie Infrastructure Company's fourth quarter and full year 2011 earnings conference call. It discusses positive cash generation trends, with proportionately combined free cash flow of $145.1 million for 2011. Segment performance is reviewed for IMTT, The Gas Company, District Energy, and Atlantic Aviation. Guidance is also provided for expected 2012 performance at each business. Debt profiles and compliance with debt covenants are summarized.
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Macquarie
1. FOURTH QUARTER AND FULL YEAR 2011 EARNINGS CONFERENCE CALL
Macquarie Infrastructure Company LLC
February 2012
Macquarie Infrastructure Company LLC
2. Di l i
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
prohibited.
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.
y y y y
This presentation contains forward-looking statements. Forward-looking statements in this
presentation are subject to a number of risks and uncertainties, some of which are beyond our
control. Our actual results, performance, prospects or opportunities could differ materially from those
expressed 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 ld
cause our actual results to differ appears under the caption “Risk Factors” in our Form 10-K filed with
the Securities and Exchange Commission on February 22, 2012. 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
M
Macquarie 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 t
otherwise provide assurance in respect of the obligations of MIC.
2
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-
4Q'10 / 4Q'11 YTD'10 / YTD'11 up activity of $0.52 /
share
1. Includes 50% equity interest in IMTT and 50.01% controlling interest in District Energy
3
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 $ 94.7
1. 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. 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. 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. MIC – P f O i
Performance Overview
4Q’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. MIC – P f O i
Performance Overview
FY 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. MIC 4Q and FY 11 – IMTT
FY’11
Operations
Good 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 million
Strong 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 2011
2012 Guidance
Full year 2012 EBITDA expected to be between $220 and $235 million
– Assumes modest price improvement, forecast maintenance capex of $50m
9
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
disruptions
1. Through December 31, 2011 compared with 2010
10
11. MIC 4Q and FY 11 - District Energy
FY’11
Operations
Warm 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 2010
Full 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 taxes
2021 Guidance
Full year 2012 EBITDA expected to be between $21m and $22m
– Assumes no significant variation in weather in Chicago
11
12. MIC 4Q and FY 11 - Atlantic Aviation
FY’11
Operations
Positive 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 February
2012 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. 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 2015
1. Assumes current balance on all facilities at December 31, 2011, does not reflect future draws or mandatory repayments with excess cash flow
2. Reflects impact of debt pre-payments year to date through December 31, 2011
3. Reflects maturity dates of primary facilities
13
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 facilities
2 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 City
3. 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. 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, 2011
Energy-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 i
A 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 IMTT's debt facilities, see "Management's 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
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 nue
Terminal revenue 107,177 94,083 13,094 13.9 417,422 372,205 45,217 12.1
Environmental 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 s
Terminal 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 25.8
Terminal gross profit 59,414 50,216 9,198 18.3 229,200 203,492 25,708 12.6
Environmental 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 16.6
Depreciation 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 34.9
Noncontrolling 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. 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 72,064
Interest expense (income), net(1) 6,944 (8,150) 52,257 50,335
Provision for income taxes 9,836 17,619 34,820 53,521
Depreciation and amortization 16,383 15,141 64,470 61,277
Other 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 51,147 206,390 236,836
Interest (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 2,011
Provision 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) 4,536
Cash provided by operating activities 44,090 65,066 129,151 196,187
Changes iin working capitall
Ch 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. 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 rgin
Revenue - non-utility 29,678 24,095 5,583 23.2 112,020 96,855 15,165 15.7
Cost 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 7.7
Revenue - utility
y 34,964
, 30,235
, 4,729
, 15.6 140,746
, 113,752
, 26,994
, 23.7
Cost 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 6.3
Production 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
71
Selling, general and administrative expenses 3,353 4,127 774 18.8 16,025 16,684 659 3.9
Depreciation 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 12.0
Interest expense, net(1) (1,226) (725) (501) (69.1) (9,138) (16,505) 7,367 44.6
Other expense (11) (80) 69 86.3 (220) (90) (130) (144.4)
Provision f i
P 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. 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 11,498
Interest expense, net (1) 1,226 725 9,138 16,505
Provision for income taxes 4,324 3,631 12,225 7,400
Depreciation and amortization 1,800 1,723 7,218 6,649
Other non-cash expense 361 785 2,279 2,384
EBITDA excluding non-cash items 13,791 12,505 1,286 10.3 49,032 44,436 4,596 10.3
EBITDA excluding non cash items
non-cash 13,791 12,505 49,032 44,436
Interest 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 costs
Provision 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 29,331
Changes in working capital 1,871 759 9,350 2,079
Maintenance 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
_____________________
g
NM - 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. 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 2.9
Cooling 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 10.4
Direct 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 expenses
S 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 36.1
Other 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. 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 20,671
Provision (benefit) for income taxes 344 1,620 212 (1,844)
Depreciation(1) 1,670 1,645 6,639 6,555
Amortization of intangibles 345 345 1,368 1,368
Other 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 22,846
Interest (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) 170 170 681 681
Equipment lease receivable, net 834 559 3,105 2,761
224 - (868) -
Provision/benefit for income taxes, net of changes in deferred taxes
Changes in working capital 1,128 2,867 520 (794)
Cash provided by operating activities 4,299 5,081 15,512 14,959
Changes in working capital (1,128) (2,867) (520) 794
Maintenance 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. 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 nue
Fuel revenue 135,363 115,837 19,526 16.9 527,501 417,489 110,012 26.4
Non-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 19.2
Cost of re ve nue
Cost 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
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Selling, general and administrative expenses 44,043 44,764 721 1.6 174,148 174,526 378 0.2
Depreciation 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 91.5
Operating income (loss) 18,825 (3,665) 22,490 NM 58,743 42,535 16,208 38.1
Interest expense, net(1)
p (7,696) (7,797) 101 1.3 (36,905) (69,409) 32,504 46.8
Other 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) NM
Ne t income (loss) (2 ) 3,364 (8,708) 12,072 138.6 9,642 (18,294) 27,936 152.7
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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-cash
items:
Net income (loss)(2) 3,364 (8,708) 9,642 (18,294)
Interest expense, net(1) 7,696 7,797 36,905 69,409
Provision (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 17,869
Other non-cash (income) expense (82) 634 228 1,388
EBITDA excluding non-cash items 32,834 29,066 3,768 13.0 126,680 117,477 9,203 7.8
EBITDA excluding non-cash items 32,834 29,066 126,680 117,477
Interest 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 2,984
Provision/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 54,035
Changes in working capital 7,825 1,612 15,307 1,476
Maintenance 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.
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