Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News Releases view all

    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • English-only
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business & Money
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Overseas Real Estate (non-US)
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Congressional & Presidential Campaigns
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • U.S. State Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • All Products
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Hamburger menu
    • PR Newswire: news distribution, targeting and monitoring
    • Send a Release
      • ALL CONTACT INFO
      • Contact Us

        888-776-0942
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • 3 News in Focus
      • 5 Business & Money
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • All Products
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business & Money) Business & Money
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

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

      - Financial Performance for the Quarter in Line with Expectations:

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

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

      -- Cash provided by operating activities of $121.9 million

      -- Adjusted Free Cash Flow of $126.6 million

      - Progress on Strategic Priorities:

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

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

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


      News provided by

      Macquarie Infrastructure Corporation

      Aug 01, 2018, 17:15 ET

      Share this article

      Share this article


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

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

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

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

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

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

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

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

      Second Quarter Segment Results 

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

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

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

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

      Strategic Initiatives

      Sale of Bayonne Energy Center (BEC)

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

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

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

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

      IMTT Repurposing and Repositioning

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

      • Repurposing Existing Capacity


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


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

      • Repositioning, Creating Additional Capacity and Capability


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

      Portfolio and Capital Management

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

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

      Segment EBITDA Guidance

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

      IMTT:

      $285 – $295 million

      Atlantic Aviation:

      $265 – $275 million

      Contracted Power:

      $80 – $90 million

      MIC Hawaii:

      $60 – $65 million

      Corporate/Other:

      $(20) – $(20) million

      Summary Financial Information





      Quarter Ended
      June 30,


      Change 
      Favorable/
      (Unfavorable)


      Six Months Ended
      June 30,




      Change
      Favorable/
      (Unfavorable)




      2018



      2017



      $


      %



      2018



      2017




      $


      %



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

      GAAP Metrics
























      Net income


      $

      36,279


      $

      26,025



      10,254


      39.4


      $

      83,074


      $

      58,663




      24,411


      41.6

      Weighted average number of shares outstanding: basic



      85,082,209



      82,430,324



      2,651,885


      3.2



      84,952,551



      82,285,053




      2,667,498


      3.2

      Net income per share attributable to MIC


      $

      0.45


      $

      0.32



      0.13


      40.6


      $

      1.36


      $

      0.75




      0.61


      81.3

      Cash provided by operating activities(1)



      121,900



      121,043



      857


      0.7



      266,002



      248,637




      17,365


      7.0

























      MIC Non-GAAP Metrics
























      EBITDA excluding non-cash items(2)


      $

      168,935


      $

      170,924



      (1,989)


      (1.2)


      $

      349,854


      $

      351,239




      (1,385)


      (0.4)

      Shared service implementation costs(3)



      -



      3,091



      (3,091)


      (100.0)



      -



      5,445




      (5,445)


      (100.0)

      Investment and acquisition/disposition costs(3)



      4,651



      4,850



      (199)


      (4.1)



      5,595



      4,850




      745


      15.4

      Adjusted EBITDA excluding non-cash items(3)


      $

      173,586


      $

      178,865



      (5,279)


      (3.0)


      $

      355,449


      $

      361,534




      (6,085)


      (1.7)

























      Cash interest(4)


      $

      (31,789)


      $

      (26,410)



      (5,379)


      (20.4)


      $

      (61,602)


      $

      (52,284)




      (9,318)


      (17.8)

      Cash taxes 



      (3,712)



      (2,618)



      (1,094)


      (41.8)



      (7,583)



      (6,339)




      (1,244)


      (19.6)

      Maintenance capital expenditures



      (9,490)



      (6,480)



      (3,010)


      (46.5)



      (19,352)



      (10,956)




      (8,396)


      (76.6)

      Noncontrolling interest(5)



      (1,948)



      (2,244)



      296


      13.2



      (4,379)



      (3,915)




      (464)


      (11.9)

      Adjusted Free Cash Flow(3)


      $

      126,647


      $

      141,113



      (14,466)


      (10.3)


      $

      262,533


      $

      288,040




      (25,507)


      (8.9)

























      __________________
























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

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

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

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

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

      Conference Call and Webcast

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

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

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

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

      About MIC

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

      Use of Non-GAAP Measures

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

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

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

      Given MIC's varied ownership levels in its CP and MIC Hawaii segments, together with obligations to report the results of these businesses on a consolidated basis, GAAP measures such as net income (loss) do not fully reflect all of the items management considers in assessing the amount of cash generated based on its ownership interest in its businesses. The Company notes that the proportionately combined metrics used may be calculated in a different manner by other companies and may limit their usefulness as a comparative measure. Therefore, proportionately combined metrics should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of financial results reported under GAAP.

      The Company's businesses can be characterized as owners of high-value, long-lived assets capable of generating substantial Free Cash Flow. MIC defines Free Cash Flow as cash from operating activities —the most comparable GAAP measure — which includes cash interest, tax payments and pension contributions, less maintenance capital expenditures, which includes principal repayments on capital lease obligations used to fund maintenance capital expenditures, and excludes changes in working capital.

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

      In its Quarterly Report on Form 10-Q, the Company has disclosed Free Cash Flow on a consolidated basis and for each of its operating segments and MIC Corporate. Management believes that both EBITDA excluding non-cash items and Free Cash Flow support a more complete and accurate understanding of the financial and operating performance of its businesses than would otherwise be achieved using GAAP results alone.

      Free Cash Flow does not take into consideration required payments on indebtedness and other fixed obligations or other cash items that are excluded from MIC's definition of Free Cash Flow. Management notes that Free Cash Flow may be calculated differently by other companies thereby limiting its usefulness as a comparative measure. Free Cash Flow should be used as a supplemental measure to help understand MIC's financial performance and not in lieu of its financial results reported under GAAP.

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

      Classification of Maintenance Capital Expenditures and Growth Capital Expenditures

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

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

      Forward-Looking Statements

      This press release contains forward-looking statements. MIC may, in some cases, use words such as "project", "believe", "anticipate", "plan", "expect", "estimate", "intend", "should", "would", "could", "potentially", or "may" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC's control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; risks associated with development, investment and expansion in the power industry; its regulatory environment establishing rate structures and monitoring quality of service; demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks; fuel and gas and other commodity costs; its ability to recover increases in costs from customers, cybersecurity risks, work interruptions or other labor stoppages; risks associated with acquisitions or dispositions, litigation risks; risks related to its shared services initiative; reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.

      MIC's actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.

      MACQUARIE INFRASTRUCTURE CORPORATION










      CONSOLIDATED CONDENSED BALANCE SHEETS

       ($ in Thousands, Except Share Data)












      June 30,


      December 31,




      2018


      2017




      (Unaudited)





      ASSETS








      Current assets:








      Cash and cash equivalents


      $

      53,976


      $

      47,121


      Restricted cash



      27,509



      24,963


      Accounts receivable, less allowance for doubtful accounts








      of $1,143 and $895, respectively



      128,629



      158,152


      Inventories



      31,495



      36,955


      Prepaid expenses



      10,073



      14,685


      Fair value of derivative instruments



      15,893



      11,965


      Other current assets



      14,261



      13,804


      Assets held for sale(1)



      951,982



      -


      Total current assets



      1,233,818



      307,645


      Property, equipment, land and leasehold improvements, net



      3,760,023



      4,659,614


      Investment in unconsolidated business 



      9,073



      9,526


      Goodwill



      2,046,896



      2,068,668


      Intangible assets, net



      833,325



      914,098


      Fair value of derivative instruments



      26,652



      24,455


      Other noncurrent assets



      26,527



      24,945


      Total assets


      $

      7,936,314


      $

      8,008,951










      LIABILITIES AND STOCKHOLDERS' EQUITY








      Current liabilities:








      Due to Manager - related party


      $

      7,435


      $

      5,577


      Accounts payable



      42,187



      60,585


      Accrued expenses



      71,293



      89,496


      Current portion of long-term debt



      42,676



      50,835


      Fair value of derivative instruments



      730



      1,710


      Other current liabilities



      39,709



      47,762


      Liabilities held for sale(1)



      307,149



      -


      Total current liabilities



      511,179



      255,965


      Long-term debt, net of current portion



      3,342,260



      3,530,311


      Deferred income taxes



      651,080



      632,070


      Fair value of derivative instruments



      1,705



      4,668


      Tolling agreements - noncurrent



      -



      52,595


      Other noncurrent liabilities



      186,020



      182,639


      Total liabilities



      4,692,244



      4,658,248


      Commitments and contingencies



      -



      -


      Stockholders' equity (2):








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


      $

      85


      $

      85


      Additional paid in capital



      1,655,367



      1,840,033


      Accumulated other comprehensive loss



      (33,466)



      (29,993)


      Retained earnings



      1,458,767



      1,343,567


      Total stockholders' equity



      3,080,753



      3,153,692


      Noncontrolling interests



      163,317



      197,011


      Total equity



      3,244,070



      3,350,703


      Total liabilities and equity


      $

      7,936,314


      $

      8,008,951


      _________________








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

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

      MACQUARIE INFRASTRUCTURE CORPORATION















      CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

      (Unaudited)

       ($ in Thousands, Except Share and Per Share Data)


















      Quarter Ended June 30,


      Six Months Ended June 30,





      2018



      2017



      2018



      2017


      Revenue














      Service revenue


      $

      375,997


      $

      345,045


      $

      778,606


      $

      708,849


      Product revenue



      102,083



      93,945



      201,030



      181,598


      Total revenue



      478,080



      438,990



      979,636



      890,447


      Costs and expenses














      Cost of services



      179,725



      147,114



      367,195



      301,820


      Cost of product sales



      47,164



      40,249



      100,549



      87,474


      Selling, general and administrative



      88,927



      82,967



      175,884



      159,919


      Fees to Manager - related party



      10,852



      18,433



      23,780



      36,656


      Depreciation



      61,086



      57,063



      122,444



      114,744


      Amortization of intangibles



      18,224



      15,898



      35,440



      33,591


      Total operating expenses 



      405,978



      361,724



      825,292



      734,204


      Operating income



      72,102



      77,266



      154,344



      156,243


      Other income (expense)














      Interest income



      111



      41



      191



      75


      Interest expense(1)



      (30,287)



      (35,356)



      (49,077)



      (60,838)


      Other income, net



      6,248



      1,738



      6,290



      2,920


      Net income before income taxes



      48,174



      43,689



      111,748



      98,400


      Provision for income taxes



      (11,895)



      (17,664)



      (28,674)



      (39,737)


      Net income 


      $

      36,279


      $

      26,025


      $

      83,074


      $

      58,663


      Less: net (loss) income attributable to 
           noncontrolling interests


      (2,087)



      5



      (32,126)



      (3,372)


      Net income attributable to MIC


      $

      38,366


      $

      26,020


      $

      115,200


      $

      62,035
















      Basic income per share attributable to MIC

      $

      0.45


      $

      0.32


      $

      1.36


      $

      0.75


      Weighted average number of shares outstanding: 
           basic 


      85,082,209



      82,430,324



      84,952,551



      82,285,053
















      Diluted income per share attributable to MIC 

      $

      0.45


      $

      0.32


      $

      1.34


      $

      0.75


      Weighted average number of shares outstanding:

           diluted


      85,091,945



      82,439,840



      89,316,951



      82,294,608


      Cash dividends declared per share


      $

      1.00


      $

      1.38


      $

      2.00


      $

      2.70
















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

      MACQUARIE INFRASTRUCTURE CORPORATION










      CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

      (Unaudited)

      ($ in Thousands)












      Six Months Ended
       June 30,




      2018




      2017(1)











      Operating activities









      Net income


      $

      83,074



      $

      58,663


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








      Depreciation and amortization of property and equipment



      122,444




      114,744


      Amortization of intangible assets



      35,440




      33,591


      Amortization of debt financing costs



      5,239




      4,301


      Amortization of debt discount



      1,800




      1,495


      Adjustments to derivative instruments



      (16,424)




      8,382


      Fees to Manager- related party



      23,780




      36,656


      Deferred taxes



      21,091




      33,398


      Pension expense



      4,190




      4,321


      Other non-cash expense (income), net



      35




      (2,935)


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








      Accounts receivable



      9,603




      (7,871)


      Inventories



      (1,816)




      (4,256)


      Prepaid expenses and other current assets



      324




      (2,529)


      Due to Manager - related party



      (18)




      (122)


      Accounts payable and accrued expenses



      (15,637)




      (15,782)


      Income taxes payable



      517




      (1,506)


      Other, net



      (7,640)




      (11,913)


      Net cash provided by operating activities



      266,002




      248,637











      Investing activities









      Acquisitions of businesses and investments, net of cash acquired



      (12,420)




      (66,321)


      Purchases of property and equipment



      (109,830)




      (130,351)


      Loan to project developer



      (17,800)




      (14,675)


      Loan repayment from project developer



      16,561




      1,396


      Proceeds from sale of business, net of cash divested



      41,038




      -


      Other, net



      157




      61


      Net cash used in investing activities



      (82,294)




      (209,890)











      Financing activities









      Proceeds from long-term debt


      $

      208,500



      $

      264,500


      Payment of long-term debt



      (168,223)




      (98,542)


      Proceeds from the issuance of shares



      125




      5,321


      Dividends paid to common stockholders



      (207,344)




      (216,508)


      Contributions received from noncontrolling interests



      373




      -


      Distributions paid to noncontrolling interests



      (1,943)




      (2,040)


      Offering and equity raise costs paid



      (80)




      (182)


      Debt financing costs paid



      (2,874)




      (447)


      Payment of capital lease obligations



      (54)




      (53)


      Net cash used in financing activities


      (171,520)




      (47,951)


      Effect of exchange rate changes on cash and cash equivalents



      (670)




      188


      Net change in cash, cash equivalents and restricted cash



      11,518




      (9,016)


      Cash, cash equivalents and restricted cash, beginning of period



      72,084




      61,257


      Cash, cash equivalents and restricted cash, end of period


      $

      83,602



      $

      52,241











      Supplemental disclosures of cash flow information








      Non-cash investing and financing activities:









           Accrued equity offering costs


      $

      27



      $

      44


           Accrued purchases of property and equipment


      $

      23,489



      $

      41,354


           Issuance of shares to Manager  


      $

      21,905



      $

      36,927


           Issuance of shares to independent directors


      $

      750



      $

      681


           Conversion of convertible senior notes to shares


      $

      6



      $

      17


           Distributions payable to noncontrolling interests


      $

      21



      $

      -


           Taxes paid, net


      $

      7,862



      $

      7,845


           Interest paid


      $

      62,541



      $

      54,601











      _________________


















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




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




      As of June 30,




      2018




      2017











      Cash and cash equivalents


      $

      53,976



      $

      28,873


      Restricted cash - current



      27,509




      23,368


      Restricted cash held for sale(2)



      2,117




      -


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


      $

      83,602



      $

      52,241











      ______________________









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


      MACQUARIE INFRASTRUCTURE CORPORATION
      CONSOLIDATED STATEMENTS OF OPERATIONS − MD&A





















































      Quarter Ended
      June 30,


      Change 
      Favorable/
      (Unfavorable)


      Six Months Ended
      June 30,



      Change
      Favorable/
      (Unfavorable)





      2018



      2017



      $


      %



      2018



      2017




      $


      %




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


      Revenue

























      Service revenue


      $

      375,997


      $

      345,045



      30,952


      9.0


      $

      778,606


      $

      708,849




      69,757


      9.8


      Product revenue



      102,083



      93,945



      8,138


      8.7



      201,030



      181,598




      19,432


      10.7


      Total revenue



      478,080



      438,990



      39,090


      8.9



      979,636



      890,447




      89,189


      10.0



























      Costs and expenses

























      Cost of services



      179,725



      147,114



      (32,611)


      (22.2)



      367,195



      301,820




      (65,375)


      (21.7)


      Cost of product sales



      47,164



      40,249



      (6,915)


      (17.2)



      100,549



      87,474




      (13,075)


      (14.9)


      Selling, general and administrative



      88,927



      82,967



      (5,960)


      (7.2)



      175,884



      159,919




      (15,965)


      (10.0)


      Fees to Manager - related party



      10,852



      18,433



      7,581


      41.1



      23,780



      36,656




      12,876


      35.1


      Depreciation



      61,086



      57,063



      (4,023)


      (7.1)



      122,444



      114,744




      (7,700)


      (6.7)


      Amortization of intangibles



      18,224



      15,898



      (2,326)


      (14.6)



      35,440



      33,591




      (1,849)


      (5.5)


      Total operating expenses 



      405,978



      361,724



      (44,254)


      (12.2)



      825,292



      734,204




      (91,088)


      (12.4)


      Operating income



      72,102



      77,266



      (5,164)


      (6.7)



      154,344



      156,243




      (1,899)


      (1.2)


      Other income (expense)

























      Interest income



      111



      41



      70


      170.7



      191



      75




      116


      154.7


      Interest expense(1)



      (30,287)



      (35,356)



      5,069


      14.3



      (49,077)



      (60,838)




      11,761


      19.3


      Other income, net



      6,248



      1,738



      4,510


       NM 



      6,290



      2,920




      3,370


      115.4


      Net income before income taxes



      48,174



      43,689



      4,485


      10.3



      111,748



      98,400




      13,348


      13.6


      Provision for income taxes



      (11,895)



      (17,664)



      5,769


      32.7



      (28,674)



      (39,737)




      11,063


      27.8


      Net income


      $

      36,279


      $

      26,025



      10,254


      39.4


      $

      83,074


      $

      58,663




      24,411


      41.6


      Less: net (loss) income attributable to
         noncontrolling interests



      (2,087)



      5



      2,092


       NM 



      (32,126)



      (3,372)




      28,754


       NM 


      Net income attributable to MIC


      $

      38,366


      $

      26,020



      12,346


      47.4


      $

      115,200


      $

      62,035




      53,165


      85.7



























      Basic income per share attributable to
         MIC


      $

      0.45


      $

      0.32



      0.13


      40.6


      $

      1.36


      $

      0.75




      0.61


      81.3


      Weighted average number of shares
         outstanding: basic 



      85,082,209



      82,430,324



      2,651,885


      3.2



      84,952,551



      82,285,053




      2,667,498


      3.2


      ________________________

























      NM - Not meaningful

























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




      MACQUARIE INFRASTRUCTURE CORPORATION
      RECONCILIATION OF CONSOLIDATED NET INCOME TO EBITDA EXCLUDING
      NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY OPERATING
      ACTIVITIES TO FREE CASH FLOW




      Quarter Ended
      June 30,


      Change 
      Favorable/
      (Unfavorable)


      Six Months Ended
      June 30,




      Change
      Favorable/
      (Unfavorable)





      2018



      2017



      $


      %



      2018



      2017




      $


      %




      ($ In Thousands) (Unaudited)



























      Net income


      $

      36,279


      $

      26,025







      $

      83,074


      $

      58,663








      Interest expense, net(1)



      30,176



      35,315








      48,886



      60,763








      Provision for income taxes



      11,895



      17,664








      28,674



      39,737








      Depreciation



      61,086



      57,063








      122,444



      114,744








      Amortization of intangibles



      18,224



      15,898








      35,440



      33,591








      Fees to Manager- related party



      10,852



      18,433








      23,780



      36,656








      Pension expense(2)



      1,937



      1,627








      4,190



      4,321








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



      (1,514)



      (1,101)








      3,366



      2,764








      EBITDA excluding non-cash items


      $

      168,935


      $

      170,924



      (1,989)


      (1.2)


      $

      349,854


      $

      351,239




      (1,385)


      (0.4)



























      EBITDA excluding non-cash items


      $

      168,935


      $

      170,924







      $

      349,854


      $

      351,239








      Interest expense, net(1)



      (30,176)



      (35,315)








      (48,886)



      (60,763)








      Adjustments to derivative
         instruments recorded in 
         interest expense(1)



      (4,706)



      5,930








      (19,755)



      2,683








      Amortization of debt 
           financing costs(1)


      2,190



      2,099








      5,239



      4,301








      Amortization of debt 
           discount(1)



      903



      876








      1,800



      1,495








      Provision for current income 
           taxes



      (3,712)



      (2,618)








      (7,583)



      (6,339)








      Changes in working capital(4)



      (11,534)



      (20,853)








      (14,667)



      (43,979)








      Cash provided by operating 
           activities



      121,900



      121,043








      266,002



      248,637








      Changes in working capital(4)



      11,534



      20,853








      14,667



      43,979








      Maintenance capital 
           expenditures



      (9,490)



      (6,480)








      (19,352)



      (10,956)








      Free cash flow  


      $

      123,944


      $

      135,416



      (11,472)


      (8.5)


      $

      261,317


      $

      281,660




      (20,343)


      (7.2)



























      __________________

























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


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


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


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




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












































      Change
      Favorable/(Unfavorable)



      Quarter Ended
      June 30,



      Change 
      Favorable/(Unfavorable)


      Six Months Ended June 30,





      2018



      2017



      $


      %



      2018



      2017



      $


      %



      ($ In Thousands) (Unaudited)
























      Free Cash Flow - Consolidated 
           basis


      $

      123,944


      $

      135,416



      (11,472)


      (8.5)


      $

      261,317


      $

      281,660



      (20,343)


      (7.2)

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


      (25,973)



      (20,704)








      (40,500)



      (30,543)






      MIC's share of Contracted Power Free Cash Flow


      24,027



      18,462








      36,126



      26,633






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


      (7,226)



      (9,295)








      (17,976)



      (24,231)






      MIC's share of MIC Hawaii Free 
           Cash Flow



      7,224



      9,293








      17,971



      24,226






      Free Cash Flow - Proportionately 
           Combined basis

      $

      121,996


      $

      133,172



      (11,176)


      (8.4)


      $

      256,938


      $

      277,745



      (20,807)


      (7.5)

      MACQUARIE INFRASTRUCTURE CORPORATION
      RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO  EBITDA
      EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED
      BY/(USED IN) OPERATING ACTIVITIES TO FREE CASH  FLOW























      IMTT
























      Quarter Ended
      June 30,


      Change
      Favorable/
      (Unfavorable)



      Six Months Ended
      June 30,



      Change
      Favorable/
      (Unfavorable)






      2018


      2017




      2018


      2017








      $


      $


      $


      %



      $


      $



      $


      %






      ($ In Thousands) (Unaudited)




      Revenue


      129,363


      137,144


      (7,781)


      (5.7)



      268,752


      275,961



      (7,209)


      (2.6)




      Cost of services


      49,716


      49,224


      (492)


      (1.0)



      104,141


      99,070



      (5,071)


      (5.1)




      Selling, general and administrative 
           expenses


      7,814


      7,485


      (329)


      (4.4)



      17,120


      16,523



      (597)


      (3.6)




      Depreciation and amortization


      32,770


      30,795


      (1,975)


      (6.4)



      66,019


      62,315



      (3,704)


      (5.9)




      Operating income


      39,063


      49,640


      (10,577)


      (21.3)



      81,472


      98,053



      (16,581)


      (16.9)




      Interest expense, net(1)


      (10,933)


      (11,763)


      830


      7.1



      (18,672)


      (20,520)



      1,848


      9.0




      Other income, net


      154


      452


      (298)


      (65.9)



      450


      1,160



      (710)


      (61.2)




      Provision for income taxes


      (8,087)


      (15,716)


      7,629


      48.5



      (17,773)


      (32,264)



      14,491


      44.9




      Net income


      20,197


      22,613


      (2,416)


      (10.7)



      45,477


      46,429



      (952)


      (2.1)


























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






















      Net income


      20,197


      22,613







      45,477


      46,429









      Interest expense, net(1)


      10,933


      11,763







      18,672


      20,520









      Provision for income taxes


      8,087


      15,716







      17,773


      32,264









      Depreciation and amortization


      32,770


      30,795







      66,019


      62,315









      Pension expense(2)


      1,743


      1,350







      3,823


      3,766









      Other non-cash expense, net 


      310


      69







      404


      137

       ` 








      EBITDA excluding non-cash items


      74,040


      82,306


      (8,266)


      (10.0)



      152,168


      165,431



      (13,263)


      (8.0)


























      EBITDA excluding non-cash items


      74,040


      82,306







      152,168


      165,431









      Interest expense, net(1)


      (10,933)


      (11,763)







      (18,672)


      (20,520)









      Adjustments to derivative 
           instruments recorded in interest 
           expense(1)


      (1,351)


      1,587







      (5,393)


      267









      Amortization of debt financing 
           costs(1)


      412


      412







      823


      823









      Provision for current income taxes


      (4,376)


      (1,155)







      (8,652)


      (3,413)









      Changes in working capital


      5,545


      (16,881)







      10,634


      (16,145)









      Cash provided by operating activities


      63,337


      54,506







      130,908


      126,443









      Changes in working capital


      (5,545)


      16,881







      (10,634)


      16,145









      Maintenance capital expenditures


      (5,483)


      (2,987)







      (12,472)


      (5,447)









      Free cash flow


      52,309


      68,400


      (16,091)


      (23.5)



      107,802


      137,141



      (29,339)


      (21.4)




      _____________________






















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



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



      Atlantic Aviation




































































      Quarter Ended
      June 30,


      Change
      Favorable/
      (Unfavorable)



      Six Months Ended June 30,



      Change
      Favorable/
      (Unfavorable)






      2018


      2017




      2018


      2017








      $


      $


      $


      %



      $


      $



      $


      %






      ($ In Thousands) (Unaudited)



      Revenue


      232,931


      196,939


      35,992


      18.3



      480,133


      409,692



      70,441


      17.2




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


      115,994


      86,957


      (29,037)


      (33.4)



      232,687


      180,879



      (51,808)


      (28.6)




      Gross margin


      116,937


      109,982


      6,955


      6.3



      247,446


      228,813



      18,633


      8.1




      Selling, general and administrative 
           expenses


      56,717


      52,596


      (4,121)


      (7.8)



      116,656


      106,486



      (10,170)


      (9.6)




      Depreciation and amortization


      26,959


      23,575


      (3,384)


      (14.4)



      52,438


      48,608



      (3,830)


      (7.9)




      Operating income


      33,261


      33,811


      (550)


      (1.6)



      78,352


      73,719



      4,633


      6.3




      Interest expense, net(1)


      (4,242)


      (5,907)


      1,665


      28.2



      (4,311)


      (9,353)



      5,042


      53.9




      Other expense, net


      (555)


      (19)


      (536)


       NM 



      (499)


      (105)



      (394)


       NM 




      Provision for income taxes


      (7,600)


      (11,077)


      3,477


      31.4



      (19,711)


      (25,627)



      5,916


      23.1




      Net income


      20,864


      16,808


      4,056


      24.1



      53,831


      38,634



      15,197


      39.3


























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






















      Net income


      20,864


      16,808







      53,831


      38,634









      Interest expense, net(1)


      4,242


      5,907







      4,311


      9,353









      Provision for income taxes


      7,600


      11,077







      19,711


      25,627









      Depreciation and amortization


      26,959


      23,575







      52,438


      48,608









      Pension expense(2)


      6


      5







      11


      10









      Other non-cash expense (income), 
           net 


      597


      (22)







      909


      40









      EBITDA excluding non-cash items


      60,268


      57,350


      2,918


      5.1



      131,211


      122,272



      8,939


      7.3


























      EBITDA excluding non-cash items


      60,268


      57,350







      131,211


      122,272









      Interest expense, net(1)


      (4,242)


      (5,907)







      (4,311)


      (9,353)









      Convertible senior notes 
           interest(3)


      (2,013)


      (2,013)







      (4,025)


      (3,757)









      Adjustments to derivative 
           instruments recorded in interest 
           expense(1)


      (1,077)


      2,553







      (5,444)


      2,686









      Amortization of debt financing 
           costs(1)


      283


      221







      562


      535









      Provision for current income taxes


      (7,207)


      (1,730)







      (13,740)


      (4,602)









      Changes in working capital


      4,572


      784







      10,591


      (5,332)









      Cash provided by operating 
           activities


      50,584


      51,258







      114,844


      102,449









      Changes in working capital


      (4,572)


      (784)







      (10,591)


      5,332









      Maintenance capital expenditures


      (1,807)


      (1,981)







      (3,109)


      (2,906)









      Free cash flow


      44,205


      48,493


      (4,288)


      (8.8)



      101,144


      104,875



      (3,731)


      (3.6)




      _____________________






















      NM - Not meaningful






















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



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



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



      Contracted Power














































      Quarter Ended
      June 30,


      Change
      Favorable/
      (Unfavorable)



      Six Months Ended June 30,



      Change
      Favorable/
      (Unfavorable)






      2018


      2017




      2018


      2017








      $


      $


      $


      %



      $


      $



      $


      %






      ($ In Thousands) (Unaudited)

























      Product revenue


      41,403


      40,166


      1,237


      3.1



      76,690


      68,236



      8,454


      12.4




      Cost of product sales


      5,862


      5,498


      (364)


      (6.6)



      11,699


      10,357



      (1,342)


      (13.0)




      Selling, general and administrative 
           expenses


      7,510


      6,244


      (1,266)


      (20.3)



      15,022


      11,409



      (3,613)


      (31.7)




      Depreciation and amortization


      14,519


      14,861


      342


      2.3



      30,046


      30,201



      155


      0.5




      Operating income


      13,512


      13,563


      (51)


      (0.4)



      19,923


      16,269



      3,654


      22.5




      Interest expense, net(1)


      (4,832)


      (8,767)


      3,935


      44.9



      (5,717)


      (14,150)



      8,433


      59.6




      Other income, net


      6,721


      1,341


      5,380


       NM 



      7,726


      2,106



      5,620


       NM 




      Provision for income taxes


      (3,654)


      (1,845)


      (1,809)


      (98.0)



      (4,604)


      (1,872)



      (2,732)


      (145.9)




      Net income


      11,747


      4,292


      7,455


      173.7



      17,328


      2,353



      14,975


       NM 




      Less: net (loss) income attributable to
         noncontrolling interest


      (2,003)


      16


      2,019


       NM 



      (32,059)


      (3,333)



      28,726


       NM 




      Net income attributable to MIC


      13,750


      4,276


      9,474


       NM 



      49,387


      5,686



      43,701


       NM 


























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






















      Net income


      11,747


      4,292







      17,328


      2,353









      Interest expense, net(1)


      4,832


      8,767







      5,717


      14,150









      Provision for income taxes


      3,654


      1,845







      4,604


      1,872









      Depreciation and amortization


      14,519


      14,861







      30,046


      30,201









      Other non-cash income, net(2)


      (1,690)


      (2,232)







      (3,578)


      (4,256)









      EBITDA excluding non-cash items


      33,062


      27,533


      5,529


      20.1



      54,117


      44,320



      9,797


      22.1


























      EBITDA excluding non-cash items


      33,062


      27,533







      54,117


      44,320









      Interest expense, net(1)


      (4,832)


      (8,767)







      (5,717)


      (14,150)









      Adjustments to derivative 
           instruments recorded in interest 
           expense(1)


      (2,178)


      1,474







      (8,148)


      (360)









      Amortization of debt financing 
           costs(1)


      379


      379







      758


      758









      (Provision) benefit for current income 
           taxes


      (54)


      85







      (70)


      (3)









      Changes in working capital(3)


      (12,694)


      (7,621)







      (11,775)


      (8,206)









      Cash provided by operating 
           activities


      13,683


      13,083







      29,165


      22,359









      Changes in working capital(3)


      12,694


      7,621







      11,775


      8,206









      Maintenance capital expenditures


      (404)


      -







      (440)


      (22)









      Free cash flow


      25,973


      20,704


      5,269


      25.4



      40,500


      30,543



      9,957


      32.6


























      _____________________






















      NM - Not meaningful

























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



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



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



      MIC Hawaii














































      Quarter Ended
      June 30,


      Change
      Favorable/
      (Unfavorable)



      Six Months Ended June 30,



      Change
      Favorable/
      (Unfavorable)






      2018


      2017




      2018


      2017









      $


      $


      $


      %



      $


      $



      $


      %






      ($ In Thousands) (Unaudited)

























      Product revenue


      60,680


      53,779


      6,901


      12.8



      124,340


      113,362



      10,978


      9.7




      Service revenue


      14,935


      12,193


      2,742


      22.5



      32,184


      25,650



      6,534


      25.5




      Total revenue


      75,615


      65,972


      9,643


      14.6



      156,524


      139,012



      17,512


      12.6




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


      41,302


      34,751


      (6,551)


      (18.9)



      88,850


      77,117



      (11,733)


      (15.2)




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


      14,015


      10,944


      (3,071)


      (28.1)



      30,367


      21,884



      (8,483)


      (38.8)




           Cost of revenue — total


      55,317


      45,695


      (9,622)


      (21.1)



      119,217


      99,001



      (20,216)


      (20.4)




      Gross margin


      20,298


      20,277


      21


      0.1



      37,307


      40,011



      (2,704)


      (6.8)




      Selling, general and administrative 
           expenses


      7,974


      6,770


      (1,204)


      (17.8)



      15,203


      12,855



      (2,348)


      (18.3)




      Depreciation and amortization


      4,896


      3,730


      (1,166)


      (31.3)



      9,051


      7,211



      (1,840)


      (25.5)




      Operating income


      7,428


      9,777


      (2,349)


      (24.0)



      13,053


      19,945



      (6,892)


      (34.6)




      Interest expense, net(1)


      (1,887)


      (2,207)


      320


      14.5



      (3,177)


      (3,918)



      741


      18.9




      Other income (expense), net


      6


      (36)


      42


      116.7



      (1,313)


      (241)



      (1,072)


       NM 




      Provision for income taxes


      (2,144)


      (2,563)


      419


      16.3



      (2,949)


      (5,942)



      2,993


      50.4




      Net income


      3,403


      4,971


      (1,568)


      (31.5)



      5,614


      9,844



      (4,230)


      (43.0)




      Less: net loss attributable to 
           noncontrolling interests


      (84)


      (11)


      73


       NM 



      (67)


      (39)



      28


      71.8




      Net income attributable to MIC


      3,487


      4,982


      (1,495)


      (30.0)



      5,681


      9,883



      (4,202)


      (42.5)


























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






















      Net income


      3,403


      4,971







      5,614


      9,844









      Interest expense, net(1)


      1,887


      2,207







      3,177


      3,918









      Provision for income taxes


      2,144


      2,563







      2,949


      5,942









      Depreciation and amortization


      4,896


      3,730







      9,051


      7,211









      Pension expense(2)


      128


      272







      255


      545









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


      (954)


      897







      5,245


      6,468









      EBITDA excluding non-cash items


      11,504


      14,640


      (3,136)


      (21.4)



      26,291


      33,928



      (7,637)


      (22.5)


























      EBITDA excluding non-cash items


      11,504


      14,640







      26,291


      33,928









      Interest expense, net(1)


      (1,887)


      (2,207)







      (3,177)


      (3,918)









      Adjustments to derivative 
           instruments recorded in interest 
           expense(1)


      (100)


      316







      (770)


      90









      Amortization of debt financing 
           costs(1)


      95


      99







      192


      204









      Provision for current income taxes


      (590)


      (2,041)







      (1,229)


      (3,492)









      Changes in working capital(4)


      (11)


      (1,812)







      (6,150)


      (10,539)









      Cash provided by operating 
           activities


      9,011


      8,995







      15,157


      16,273









      Changes in working capital(4)


      11


      1,812







      6,150


      10,539









      Maintenance capital expenditures


      (1,796)


      (1,512)







      (3,331)


      (2,581)









      Free cash flow


      7,226


      9,295


      (2,069)


      (22.3)



      17,976


      24,231



      (6,255)


      (25.8)





      _____________________

      NM - Not meaningful

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

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

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

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

      Corporate and Other














































      Quarter Ended
      June 30,


      Change
      Favorable/
      (Unfavorable)



      Six Months Ended June 30,



      Change
      Favorable/
      (Unfavorable)






      2018


      2017




      2018


      2017








      $


      $


      $


      %



      $


      $



      $


      %






      ($ In Thousands) (Unaudited)

























      Fees to Manager-related party


      10,852


      18,433


      7,581


      41.1



      23,780


      36,656



      12,876


      35.1




      Selling, general and administrative 
           expenses(1)


      10,144


      11,092


      948


      8.5



      14,346


      15,087



      741


      4.9




      Depreciation


      166


      -


      (166)


       NM 



      330


      -



      (330)


       NM 




      Operating loss


      (21,162)


      (29,525)


      8,363


      28.3



      (38,456)


      (51,743)



      13,287


      25.7




      Interest expense, net(2)


      (8,282)


      (6,671)


      (1,611)


      (24.1)



      (17,009)


      (12,822)



      (4,187)


      (32.7)




      Other expense, net


      (78)


      -


      (78)


       NM 



      (74)


      -



      (74)


       NM 




      Benefit for income taxes


      9,590


      13,537


      (3,947)


      (29.2)



      16,363


      25,968



      (9,605)


      (37.0)




      Net loss


      (19,932)


      (22,659)


      2,727


      12.0



      (39,176)


      (38,597)



      (579)


      (1.5)


























      Reconciliation of net loss to EBITDA excluding
         non-cash items and a reconciliation of cash
         used in operating activities to Free Cash Flow:






















      Net loss


      (19,932)


      (22,659)







      (39,176)


      (38,597)









      Interest expense, net(2)


      8,282


      6,671







      17,009


      12,822









      Benefit for income taxes


      (9,590)


      (13,537)







      (16,363)


      (25,968)









      Depreciation


      166


      -







      330


      -









      Fees to Manager-related party


      10,852


      18,433







      23,780


      36,656









      Pension expense(3)


      60


      -







      101


      -









      Other non-cash expense, net


      223


      187







      386


      375









      EBITDA excluding non-cash items


      (9,939)


      (10,905)


      966


      8.9



      (13,933)


      (14,712)



      779


      5.3


























      EBITDA excluding non-cash items


      (9,939)


      (10,905)







      (13,933)


      (14,712)









      Interest expense, net(2)


      (8,282)


      (6,671)







      (17,009)


      (12,822)









      Convertible senior notes 
           interest(4)


      2,013


      2,013







      4,025


      3,757









      Amortization of debt financing 
           costs(2)


      1,021


      988







      2,904


      1,981









      Amortization of debt discount(2)


      903


      876







      1,800


      1,495









      Benefit for current income taxes


      8,515


      2,223







      16,108


      5,171









      Changes in working capital


      (8,946)


      4,677







      (17,967)


      (3,757)









      Cash used in operating activities


      (14,715)


      (6,799)







      (24,072)


      (18,887)









      Changes in working capital


      8,946


      (4,677)







      17,967


      3,757









      Free cash flow


      (5,769)


      (11,476)


      5,707


      49.7



      (6,105)


      (15,130)



      9,025


      59.6




      _____________________






















      NM - Not meaningful






















      (1) For the quarter and six months ended June 30, 2018, selling, general and administrative expenses included $4.7 million and $5.6 million, respectively, of costs incurred in connection with the evaluation of various investment and acquisition/ disposition opportunities, compared with $4.9 million for the quarter and six months ended June 30, 2017. For the quarter and six months ended June 30, 2017, selling, general and administrative expenses also included $3.1 million and $5.4 million, respectively, of costs related to the implementation of a shared service center. 



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



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



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



      MACQUARIE INFRASTRUCTURE CORPORATION
      RECONCILIATION OF NET INCOME (LOSS) TO  EBITDA
      EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH PROVIDED BY/(USED
      IN) OPERATING ACTIVITIES TO PROPORTIONATELY COMBINED FREE CASH  FLOW









      For the Quarter Ended June 30, 2018






      IMTT 

       Atlantic
      Aviation 

      Contracted
      Power(1)

      MIC
      Hawaii(1)

      MIC
      Corporate 

      Proportionately
      Combined(2)


      Contracted
      Power
      100%

      MIC
      Hawaii
      100%



      ($ in Thousands) (Unaudited)




      Net income (loss)


      20,197

      20,864

      10,947

      3,402

      (19,932)

      35,478


      11,747

      3,403

      Interest expense, net(3)


      10,933

      4,242

      4,350

      1,886

      8,282

      29,693


      4,832

      1,887

      Provision (benefit) for income taxes


      8,087

      7,600

      3,654

      2,144

      (9,590)

      11,895


      3,654

      2,144

      Depreciation and amortization


      32,770

      26,959

      13,062

      4,894

      166

      77,851


      14,519

      4,896

      Fees to Manager-related party


      -

      -

      -

      -

      10,852

      10,852


      -

      -

      Pension expense(4)


      1,743

      6

      -

      128

      60

      1,937


      -

      128

      Other non-cash expense (income), 
           net(5)


      310

      597

      (1,751)

      (954)

      223

      (1,575)


      (1,690)

      (954)

      EBITDA excluding non-cash items


      74,040

      60,268

      30,262

      11,500

      (9,939)

      166,131


      33,062

      11,504












      EBITDA excluding non-cash items


      74,040

      60,268

      30,262

      11,500

      (9,939)

      166,131


      33,062

      11,504

      Interest expense, net(3)


      (10,933)

      (4,242)

      (4,350)

      (1,886)

      (8,282)

      (29,693)


      (4,832)

      (1,887)

      Convertible senior notes interest(6)


      -

      (2,013)

      -

      -

      2,013

      -


      -

      -

      Adjustments to derivative 
           instruments recorded in interest 
           expense, net(3)


      (1,351)

      (1,077)

      (1,893)

      (99)

      -

      (4,420)


      (2,178)

      (100)

         Amortization of debt financing 
           costs(3)


      412

      283

      365

      95

      1,021

      2,176


      379

      95

      Amortization of debt discount(3)


      -

      -

      -

      -

      903

      903


      -

      -

      (Provision) benefit for current income 
           taxes


      (4,376)

      (7,207)

      (54)

      (590)

      8,515

      (3,712)


      (54)

      (590)

      Changes in working capital 


      5,545

      4,572

      (12,562)

      (10)

      (8,946)

      (11,401)


      (12,694)

      (11)

      Cash provided by (used in) operating 
           activities


      63,337

      50,584

      11,768

      9,010

      (14,715)

      119,984


      13,683

      9,011

      Changes in working capital 


      (5,545)

      (4,572)

      12,562

      10

      8,946

      11,401


      12,694

      11

      Maintenance capital expenditures


      (5,483)

      (1,807)

      (303)

      (1,796)

      -

      (9,389)


      (404)

      (1,796)

      Proportionately Combined Free Cash flow


      52,309

      44,205

      24,027

      7,224

      (5,769)

      121,996


      25,973

      7,226















































      For the Quarter Ended June 30, 2017






      IMTT

       Atlantic
      Aviation 

      Contracted
      Power(1)

      MIC
      Hawaii(1)

      MIC
      Corporate 

      Proportionately
      Combined(2)


      Contracted
      Power
      100%

      MIC
      Hawaii
      100%



      ($ in Thousands) (Unaudited)




      Net income (loss)


      22,613

      16,808

      4,107

      4,973

      (22,659)

      25,842


      4,292

      4,971

      Interest expense, net(3)


      11,763

      5,907

      7,789

      2,204

      6,671

      34,334


      8,767

      2,207

      Provision (benefit) for income taxes


      15,716

      11,077

      1,845

      2,563

      (13,537)

      17,664


      1,845

      2,563

      Depreciation and amortization


      30,795

      23,575

      12,980

      3,726

      -

      71,076


      14,861

      3,730

      Fees to Manager-related party


      -

      -

      -

      -

      18,433

      18,433


      -

      -

      Pension expense(4)


      1,350

      5

      -

      272

      -

      1,627


      -

      272

      Other non-cash expense (income), 
           net(5)


      69

      (22)

      (2,232)

      898

      187

      (1,100)


      (2,232)

      897

      EBITDA excluding non-cash items


      82,306

      57,350

      24,489

      14,636

      (10,905)

      167,876


      27,533

      14,640












      EBITDA excluding non-cash items


      82,306

      57,350

      24,489

      14,636

      (10,905)

      167,876


      27,533

      14,640

      Interest expense, net(3)


      (11,763)

      (5,907)

      (7,789)

      (2,204)

      (6,671)

      (34,334)


      (8,767)

      (2,207)

      Convertible senior notes interest(6)


      -

      (2,013)

      -

      -

      2,013

      -


      -

      -

      Adjustments to derivative 
           instruments recorded in interest 
           expense, net(3)


      1,587

      2,553

      1,312

      315

      -

      5,767


      1,474

      316

         Amortization of debt financing 
           costs(3)


      412

      221

      365

      99

      988

      2,085


      379

      99

      Amortization of debt discount(3)


      -

      -

      -

      -

      876

      876


      -

      -

      (Provision) benefit for current income 
           taxes


      (1,155)

      (1,730)

      85

      (2,041)

      2,223

      (2,618)


      85

      (2,041)

      Changes in working capital(7)


      (16,881)

      784

      (7,215)

      (1,793)

      4,677

      (20,428)


      (7,621)

      (1,812)

      Cash provided by (used in) operating 
           activities


      54,506

      51,258

      11,247

      9,012

      (6,799)

      119,224


      13,083

      8,995

      Changes in working capital(7)


      16,881

      (784)

      7,215

      1,793

      (4,677)

      20,428


      7,621

      1,812

      Maintenance capital expenditures


      (2,987)

      (1,981)

      -

      (1,512)

      -

      (6,480)


      -

      (1,512)

      Proportionately Combined Free Cash Flow


      68,400

      48,493

      18,462

      9,293

      (11,476)

      133,172


      20,704

      9,295



      For the Six Months Ended Ended June 30, 2018






      IMTT

       Atlantic
      Aviation 

      Contracted
      Power(1)

      MIC
      Hawaii(1)

      MIC
       Corporate 

      Proportionately
      Combined(2)


      Contracted
      Power
      100%

      MIC
      Hawaii
       100%



      ($ in Thousands) (Unaudited)




      Net income (loss) 


      45,477

      53,831

      15,215

      5,612

      (39,176)

      80,959


      17,328

      5,614

      Interest expense, net(3)


      18,672

      4,311

      5,246

      3,178

      17,009

      48,416


      5,717

      3,177

      Provision (benefit) for income taxes


      17,773

      19,711

      4,604

      2,949

      (16,363)

      28,674


      4,604

      2,949

      Depreciation and amortization


      66,019

      52,438

      26,706

      9,044

      330

      154,537


      30,046

      9,051

      Fees to Manager-related party


      -

      -

      -

      -

      23,780

      23,780


      -

      -

      Pension expense(4)


      3,823

      11

      -

      255

      101

      4,190


      -

      255

      Other non-cash expense (income), 
           net(5)


      404

      909

      (3,635)

      5,245

      386

      3,309


      (3,578)

      5,245

      EBITDA excluding non-cash items


      152,168

      131,211

      48,136

      26,283

      (13,933)

      343,865


      54,117

      26,291












      EBITDA excluding non-cash items


      152,168

      131,211

      48,136

      26,283

      (13,933)

      343,865


      54,117

      26,291

      Interest expense, net(3)


      (18,672)

      (4,311)

      (5,246)

      (3,178)

      (17,009)

      (48,416)


      (5,717)

      (3,177)

      Convertible senior notes interest(6)


      -

      (4,025)

      -

      -

      4,025

      -


      -

      -

      Adjustments to derivative 
           instruments recorded in interest 
           expense, net(3)


      (5,393)

      (5,444)

      (7,094)

      (766)

      -

      (18,697)


      (8,148)

      (770)

      Amortization of debt financing 
               costs(3)


      823

      562

      730

      192

      2,904

      5,211


      758

      192

      Amortization of debt discount(3)


      -

      -

      -

      -

      1,800

      1,800


      -

      -

      (Provision) benefit for current income 
           taxes


      (8,652)

      (13,740)

      (70)

      (1,229)

      16,108

      (7,583)


      (70)

      (1,229)

      Changes in working capital


      10,634

      10,591

      (11,373)

      (6,149)

      (17,967)

      (14,264)


      (11,775)

      (6,150)

      Cash provided by (used in) operating 
           activities


      130,908

      114,844

      25,083

      15,153

      (24,072)

      261,916


      29,165

      15,157

      Changes in working capital


      (10,634)

      (10,591)

      11,373

      6,149

      17,967

      14,264


      11,775

      6,150

      Maintenance capital expenditures


      (12,472)

      (3,109)

      (330)

      (3,331)

      -

      (19,242)


      (440)

      (3,331)

      Proportionately Combined Free Cash Flow


      107,802

      101,144

      36,126

      17,971

      (6,105)

      256,938


      40,500

      17,976

























      For the Six Months Ended Ended June 30, 2017






      IMTT

       Atlantic
      Aviation 

      Contracted
      Power(1)

      MIC
      Hawaii(1)

      MIC
       Corporate 

      Proportionately
      Combined(2)


      Contracted
      Power
       100%

      MIC
      Hawaii
       100%



      ($ in Thousands) (Unaudited)




      Net income (loss)


      46,429

      38,634

      2,153

      9,848

      (38,597)

      58,467


      2,353

      9,844

      Interest expense, net(3)


      20,520

      9,353

      12,579

      3,914

      12,822

      59,188


      14,150

      3,918

      Provision (benefit) for income taxes


      32,264

      25,627

      1,872

      5,942

      (25,968)

      39,737


      1,872

      5,942

      Depreciation and amortization


      62,315

      48,608

      26,441

      7,202

      -

      144,566


      30,201

      7,211

      Fees to Manager-related party


      -

      -

      -

      -

      36,656

      36,656


      -

      -

      Pension expense(4)


      3,766

      10

      -

      545

      -

      4,321


      -

      545

      Other non-cash expense (income), 
           net(5)


      137

      40

      (4,235)

      6,469

      375

      2,786


      (4,256)

      6,468

      EBITDA excluding non-cash items


      165,431

      122,272

      38,810

      33,920

      (14,712)

      345,721


      44,320

      33,928












      EBITDA excluding non-cash items


      165,431

      122,272

      38,810

      33,920

      (14,712)

      345,721


      44,320

      33,928

      Interest expense, net(3)


      (20,520)

      (9,353)

      (12,579)

      (3,914)

      (12,822)

      (59,188)


      (14,150)

      (3,918)

      Convertible senior notes interest(6)


      -

      (3,757)

      -

      -

      3,757

      -


      -

      -

      Adjustments to derivative 
           instruments recorded in interest 
           expense, net(3)


      267

      2,686

      (302)

      89

      -

      2,740


      (360)

      90

         Amortization of debt financing 
           costs(3)


      823

      535

      729

      204

      1,981

      4,272


      758

      204

         Amortization of debt discount(3)


      -

      -

      -

      -

      1,495

      1,495


      -

      -

      (Provision) benefit for current income 
           taxes


      (3,413)

      (4,602)

      (3)

      (3,492)

      5,171

      (6,339)


      (3)

      (3,492)

      Changes in working capital(7)


      (16,145)

      (5,332)

      (8,094)

      (10,519)

      (3,757)

      (43,847)


      (8,206)

      (10,539)

      Cash provided by (used in) operating 
           activities


      126,443

      102,449

      18,561

      16,288

      (18,887)

      244,854


      22,359

      16,273

      Changes in working capital(7)


      16,145

      5,332

      8,094

      10,519

      3,757

      43,847


      8,206

      10,539

      Maintenance capital expenditures


      (5,447)

      (2,906)

      (22)

      (2,581)

      -

      (10,956)


      (22)

      (2,581)

      Proportionately Combined Free Cash Flow


      137,141

      104,875

      26,633

      24,226

      (15,130)

      277,745


      30,543

      24,231












      ___________________________











      (1) Represents MIC's proportionately combined interests in the businesses comprising these reportable segments.

      (2) The sum of the amounts attributable to MIC in proportion to its ownership.

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

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

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

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

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

      SOURCE Macquarie Infrastructure Corporation

      Modal title

      Contact PR Newswire

      • Call PR Newswire at 888-776-0942
        from 8 AM - 9 PM ET
      • Chat with an Expert
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content

      About

      • About PR Newswire
      • About Cision
      • Careers
      • Accessibility Statement
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Italy
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United Kingdom
      • Vietnam

      My Services

      • All New Releases
      • Platform Login
      • Data Privacy

      Do not sell or share my personal information:

      • Submit via [email protected] 
      • Call Privacy toll-free: 877-297-8921

      Contact PR Newswire

      Products

      About

      My Services
      • All News Releases
      • Platform Login
      • ProfNet
      Call PR Newswire at
      888-776-0942
      • Terms of Use
      • Privacy Policy
      • Information Security Policy
      • Site Map
      • RSS
      • Cookies
      Copyright © 2026 Cision US Inc.