MIC Reports Third Quarter 2021 Financial And Operational Results
- Sale of Atlantic Aviation closed, proceeds of $37.386817 per unit in cash distributed on October 7, 2021
- Offer to Repurchase 2.00% Convertible Senior Notes closed on October 22, 2021, approximately $26.9 million repurchased
NEW YORK, Nov. 2, 2021 /PRNewswire/ -- Macquarie Infrastructure Holdings, LLC (NYSE: MIC) (the "Company") today announced its financial and operational results from continuing operations for the third quarter of 2021.
"Our reported results reflect the previously announced closing of the sale of Atlantic Aviation which resulted in a distribution of $37.386817 per unit in cash on October 7, 2021," said Christopher Frost, chief executive officer of MIC. "We continue to expect the merger of the Company with an entity managed by Argo Infrastructure Partners, LP will be concluded in the first half of 2022 and result in consideration of $3.83 per unit in cash being distributed."
"Following the sale of Atlantic Aviation, holders of the Company's 2.00% Convertible Senior Notes, due in 2023, were entitled to put their notes to us at par plus accrued interest. Approximately $26.9 million of Notes were repurchased on October 22, 2021, leaving approximately $6.8 million outstanding," Frost added.
Financial and Operational Results
MIC's results from continuing operations for the third quarter of 2021 reflect improving conditions for its businesses as the number of visitors to Hawaii continued to recover from COVID-induced lows. Visitors to the islands increased to approximately 79% of pre-pandemic levels during the period. The resulting increase in hotel occupancy and restaurant patronage contributed to a 47% increase in gas consumption compared with the third quarter of 2020 ("prior comparable period").
The financial impact of the increased consumption was partially offset by a higher wholesale cost of Liquified Petroleum Gas ("LPG") distributed by Hawaii Gas. Overall gas consumption was 7% below the levels recorded in the third quarter of 2019.
Each of MIC's key financial performance metrics reflect the impact of increased expenses of approximately $280.2 million primarily associated with the sale of its Atlantic Aviation business and with the Company's reorganization as a limited liability company.
MIC recorded a net loss from continuing operations of $274.7 million in the third quarter compared with a net loss of $5.5 million in the prior comparable period.
The Company reported Adjusted EBITDA excluding non-cash items from continuing operations of $9.0 million for the quarter, versus $5.4 million in the third quarter of 2020.
MIC used $271.5 million of cash in operating activities during the quarter compared with cash generated of $1.5 million in the prior comparable period.
The Company reported Adjusted Free Cash Flow from continuing operations of $7.9 million for the quarter, versus $2.2 million in the third quarter of 2020.
Summary Financial Information
Quarter Ended | Change Favorable/ (Unfavorable) | Nine Months Ended | Change Favorable/ (Unfavorable) | ||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||
($ In Thousands, Except Unit and Per Unit Data) (Unaudited) | |||||||||||||||||||||||||||
GAAP Metrics | |||||||||||||||||||||||||||
Continuing Operations | |||||||||||||||||||||||||||
Net loss | $ | (274,651) | $ | (5,490) | (269,161) | NM | $ | (296,461) | $ | (25,192) | (271,269) | NM | |||||||||||||||
Net loss per unit attributable to MIH | (3.12) | (0.06) | (3.06) | NM | (3.38) | (0.29) | (3.09) | NM | |||||||||||||||||||
Cash (used in) provided by operating activities | (271,548) | 1,462 | (273,010) | NM | (292,199) | (1,324) | (290,875) | NM | |||||||||||||||||||
Discontinued Operations | |||||||||||||||||||||||||||
Net income (loss) | $ | 2,954,444 | $ | (887,880) | 3,842,324 | NM | $ | 2,996,984 | $ | (864,249) | 3,861,233 | NM | |||||||||||||||
Net income (loss) per unit attributable to MIH | 33.61 | (10.20) | 43.81 | NM | 34.19 | (9.95) | 44.14 | NM | |||||||||||||||||||
Cash provided by operating activities | 47,860 | 108,125 | (60,265) | (56) | 28,965 | 283,506 | (254,541) | (90) | |||||||||||||||||||
Weighted average number of units outstanding: basic | 87,891,018 | 87,030,751 | 860,267 | 1 | 87,645,390 | 86,864,951 | 780,439 | 1 | |||||||||||||||||||
MIH Non-GAAP Metrics | |||||||||||||||||||||||||||
EBITDA excluding non-cash items - continuing operations | $ | (271,181) | $ | 2,052 | (273,233) | NM | $ | (260,248) | $ | 8,258 | (268,506) | NM | |||||||||||||||
Investment and acquisition/disposition costs | 280,161 | 3,335 | 276,826 | NM | 291,036 | 16,161 | 274,875 | NM | |||||||||||||||||||
Adjusted EBITDA excluding non - cash items–continuing operations | 8,980 | 5,387 | 3,593 | 67 | 30,788 | 24,419 | 6,369 | 26 | |||||||||||||||||||
Cash interest | (616) | (3,546) | 2,930 | 83 | (9,478) | (10,935) | 1,457 | 13 | |||||||||||||||||||
Cash taxes | 1,580 | 1,765 | (185) | (10) | 5,935 | 7,973 | (2,038) | (26) | |||||||||||||||||||
Maintenance capital expenditures | (2,007) | (1,389) | (618) | (44) | (4,767) | (5,435) | 668 | 12 | |||||||||||||||||||
Adjusted Free Cash Flow - continuing operations | $ | 7,937 | $ | 2,217 | 5,720 | NM | $ | 22,478 | $ | 16,022 | 6,456 | 40 | |||||||||||||||
NM — Not meaningful. | |||
About MIC
MIC owns and operates businesses providing energy services, production and distribution in Hawaii. For additional information, please visit the MIC website at www.macquarie.com/mic.
Use of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow
In addition to MIC's results under U.S. GAAP, the Company uses the non-GAAP measures EBITDA excluding non-cash items and Free Cash Flow to assess the performance and prospects of its businesses.
MIC measures EBITDA excluding non-cash items as a reflection of its 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 its capitalization and tax attributes. The Company believes investors use EBITDA excluding non-cash items primarily 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. Other non-cash expenses, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries. EBITDA excluding non-cash items also excludes base management fees and performance fees, if any, whether paid in cash or stock.
The Company's is an owner 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 — less maintenance capital expenditures and adjusted for changes in working capital.
Management uses Free Cash Flow as a measure of its ability to fund acquisitions, invest in growth projects and to reduce or repay indebtedness. GAAP metrics such as net income (loss) do not provide MIC management with the same level of visibility into the performance and prospects of the business as a result of: (i) the capital intensive nature of its operations and the generation of non-cash depreciation and amortization; (ii) units 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 mark-to-market adjustment of the value of derivative instruments; (v) gains (losses) related to the write-off or disposal of assets or liabilities, (vi) non-cash compensation expense incurred in relation to the incentive plans for senior management of the Company's operating business; 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 in 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 to assess the Company's ability to fund acquisitions, invest in growth projects and reduce or repay indebtedness.
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 the tables below for a reconciliation of Net Income (Loss) to EBITDA excluding non-cash items from continuing operations and a reconciliation of cash provided by operating activities from continuing operations to Free Cash Flow from continuing operations.
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 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 various factors in determining whether a specific capital expenditure will be classified as maintenance or growth.
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.
Disclaimer on Forward Looking Statements
This communication contains forward-looking statements. The Company 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. Such statements include, among others, those concerning the Company's expected financial performance and strategic and operational plans, statements regarding the proposed sale of the Company and the anticipated uses of any proceeds therefrom, statements regarding the anticipated specific and overall impacts of the COVID-19 pandemic, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements in this communication are subject to a number of risks and uncertainties, some of which are beyond the Company's control, including, among other things: changes in general economic or business conditions; the ongoing impact of the COVID-19 pandemic; the Company's ability to complete the announced sale; uncertainties as to the timing of the consummation of the proposed transaction; the risk that conditions to closing of the proposed transaction are not satisfied, including the failure to timely obtain the requisite approvals or regulatory clearances; the occurrence of any event giving rise to a termination of the proposed transaction; the Company's ability to service, comply with the terms of and refinance debt; its ability to retain or replace qualified employees; in the absence of a sale, its ability to complete growth projects, deploy growth capital and manage growth, make and finance future acquisitions and implement its strategy; the regulatory environment; 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; the Company's ability to recover increases in costs from customers; cybersecurity risks; work interruptions or other labor stoppages; risks associated with acquisitions or dispositions; litigation risks; reliance on sole or limited source suppliers, risks or conflicts of interests involving the Company's relationship with the Macquarie Group; and changes in U.S. federal tax law. These and other risks and uncertainties are described under the caption "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and in its other reports filed from time to time with the SEC.
The Company'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 the Company 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 press release may not occur. These forward-looking statements are made as of the date of this press release. The Company 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.
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||
CONSOLIDATED CONDENSED BALANCE SHEETS ($ in Thousands, Except Unit Data) | |||||||
September 30, 2021 | December 31, | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 3,371,973 | $ | 1,518,108 | |||
Restricted cash | 955 | 1,036 | |||||
Accounts receivable, net of allowance for doubtful accounts | 25,279 | 23,113 | |||||
Inventories | 10,543 | 9,564 | |||||
Prepaid expenses | 4,334 | 2,212 | |||||
Other current assets | 6,924 | 1,715 | |||||
Current assets held for sale(1) | — | 2,185,002 | |||||
Total current assets | 3,420,008 | 3,740,750 | |||||
Property, equipment, land and leasehold improvements, net | 296,637 | 297,375 | |||||
Operating lease assets, net | 11,455 | 9,878 | |||||
Goodwill | 120,193 | 120,193 | |||||
Intangible assets, net | 4,604 | 4,923 | |||||
Other noncurrent assets | 11,067 | 5,520 | |||||
Total assets | $ | 3,863,964 | $ | 4,178,639 | |||
LIABILITIES AND UNITHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Due to Manager-related party | $ | 57 | $ | 1,203 | |||
Accounts payable | 6,820 | 13,082 | |||||
Accrued expenses | 18,891 | 17,798 | |||||
Current portion of long-term debt | 28,292 | 1,060 | |||||
Distribution payable | 3,297,420 | 960,981 | |||||
Operating lease liabilities - current | 1,829 | 2,019 | |||||
Other current liabilities | 4,755 | 9,591 | |||||
Current liabilities held for sale(1) | — | 1,613,830 | |||||
Total current liabilities | 3,358,064 | 2,619,564 | |||||
Long-term debt, net of current portion | 97,861 | 578,169 | |||||
Deferred income taxes | 27,294 | 26,453 | |||||
Operating lease liabilities - noncurrent | 9,581 | 7,869 | |||||
Other noncurrent liabilities | 53,647 | 53,278 | |||||
Total liabilities | 3,546,447 | 3,285,333 | |||||
Commitments and contingencies | — | — | |||||
Unitholders' equity(2): | |||||||
Common Units paid in capital (500,000,000 authorized; 88,197,409 units issued and outstanding on September 30, 2021 and 87,361,929 units issued and outstanding on December 31, 2020) | 192,207 | 178,062 | |||||
Accumulated other comprehensive loss | (6,171) | (6,175) | |||||
Retained earnings | 123,027 | 713,129 | |||||
Total unitholders' equity | 309,063 | 885,016 | |||||
Noncontrolling interests | 8,454 | 8,290 | |||||
Total equity | 317,517 | 893,306 | |||||
Total liabilities and equity | $ | 3,863,964 | $ | 4,178,639 | |||
(1) | See Note 4, "Discontinued Operations and Dispositions", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended September 30, 2021, for discussions on businesses classified as held for sale. | ||||
(2) | The Company is authorized to issue 100,000,000 preferred units. On September 30, 2021 and December 31, 2020, no preferred units were issued or outstanding. The Company had 100 special units issued and outstanding to its Manager on September 30, 2021 and December 31, 2020. | ||||
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS ($ in Thousands, Except Unit and Per Unit Data) | |||||||||||||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | |||||||||||||||
Product revenue | $ | 60,086 | $ | 39,036 | $ | 173,413 | $ | 136,293 | |||||||
Total revenue | 60,086 | 39,036 | 173,413 | 136,293 | |||||||||||
Costs and expenses | |||||||||||||||
Cost of product sales | 40,613 | 25,059 | 113,203 | 85,218 | |||||||||||
Selling, general and administrative | 61,704 | 11,135 | 88,429 | 40,561 | |||||||||||
Disposition payment to Manager | 228,551 | — | 228,570 | — | |||||||||||
Total Selling, general and administrative | 290,255 | 11,135 | 316,999 | 40,561 | |||||||||||
Fees to Manager - related party | 7,698 | 4,980 | 20,801 | 16,160 | |||||||||||
Depreciation | 3,757 | 3,717 | 11,133 | 10,906 | |||||||||||
Amortization of intangibles | 107 | 105 | 319 | 318 | |||||||||||
Total operating expenses | 342,430 | 44,996 | 462,455 | 153,163 | |||||||||||
Operating loss | (282,344) | (5,960) | (289,042) | (16,870) | |||||||||||
Other income (expense) | |||||||||||||||
Interest income | 6 | (42) | 22 | 22 | |||||||||||
Interest expense(1) | (948) | (4,905) | (13,991) | (16,215) | |||||||||||
Other income (expense), net | 180 | (769) | (238) | (937) | |||||||||||
Net loss from continuing operations before income taxes | (283,106) | (11,676) | (303,249) | (34,000) | |||||||||||
Benefit for income taxes | 8,455 | 6,186 | 6,788 | 8,808 | |||||||||||
Net loss from continuing operations | (274,651) | (5,490) | (296,461) | (25,192) | |||||||||||
Discontinued Operations(2) | |||||||||||||||
Net income (loss) from discontinued operations before income taxes | 3,004,955 | (718,061) | 3,063,442 | (688,499) | |||||||||||
Provision for income taxes | (50,511) | (169,819) | (66,458) | (175,750) | |||||||||||
Net income (loss) from discontinued operations | 2,954,444 | (887,880) | 2,996,984 | (864,249) | |||||||||||
Net income (loss) | 2,679,793 | (893,370) | 2,700,523 | (889,441) | |||||||||||
Net loss from continuing operations | (274,651) | (5,490) | (296,461) | (25,192) | |||||||||||
Less: net (loss) income attributable to noncontrolling interest | (14) | (122) | 167 | 459 | |||||||||||
Net loss from continuing operations attributable to MIH | (274,637) | (5,368) | (296,628) | (25,651) | |||||||||||
Net income (loss) from discontinued operations | 2,954,444 | (887,880) | 2,996,984 | (864,249) | |||||||||||
Net income (loss) from discontinued operations attributable to MIH | 2,954,444 | (887,880) | 2,996,984 | (864,249) | |||||||||||
Net income (loss) attributable to MIH | $ | 2,679,807 | $ | (893,248) | $ | 2,700,356 | $ | (889,900) | |||||||
Basic loss per units from continuing operations attributable to MIH | $ | (3.12) | $ | (0.06) | $ | (3.38) | $ | (0.29) | |||||||
Basic income (loss) per units from discontinued operations attributable to MIH | 33.61 | (10.20) | 34.19 | (9.95) | |||||||||||
Basic income (loss) per units attributable to MIH | $ | 30.49 | $ | (10.26) | $ | 30.81 | $ | (10.24) | |||||||
Weighted average number of units outstanding: basic | 87,891,018 | 87,030,751 | 87,645,390 | 86,864,951 | |||||||||||
Diluted loss per unit from continuing operations attributable to MIH | $ | (3.12) | $ | (0.06) | $ | (3.38) | $ | (0.29) | |||||||
Diluted income (loss) per unit from discontinued operations attributable to MIH | 33.61 | (10.20) | 34.19 | (9.95) | |||||||||||
Diluted income (loss) per unit attributable to MIH | $ | 30.49 | $ | (10.26) | $ | 30.81 | $ | (10.24) | |||||||
Weighted average number of units outstanding: diluted | 87,891,018 | 87,030,751 | 87,645,390 | 86,864,951 | |||||||||||
Cash distributions declared per unit | $ | 37.386817 | $ | — | $ | 37.386817 | $ | — | |||||||
(1) | Interest expense includes non-cash gains on derivative instruments of $8,000 and $213,000 for the quarter and nine months ended September 30, 2021, respectively, compared with non-cash losses of $7,000 and $963,000 for the quarter and nine months ended September 30, 2020, respectively. | ||||
(2) | See Note 4, "Discontinued Operations and Dispositions", in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended September 30, 2021, for discussions on businesses classified as held for sale. | ||||
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS ($ in Thousands) | |||||||
Nine Months Ended September 30, | |||||||
2021 | 2020 | ||||||
Operating activities | |||||||
Net loss from continuing operations | $ | (296,461) | $ | (25,192) | |||
Adjustments to reconcile net loss to net cash used in operating activities from continuing operations: | |||||||
Depreciation | 11,133 | 10,906 | |||||
Amortization of intangibles | 319 | 318 | |||||
Write-off of debt financing costs | 4,170 | 2,882 | |||||
Amortization of debt discount and financing costs | 664 | 1,414 | |||||
Adjustments to derivative instruments | (7,628) | (4,290) | |||||
Fees to Manager - related party | 20,801 | 16,160 | |||||
Deferred taxes | (853) | (835) | |||||
Other non-cash expense, net | 4,274 | 4,085 | |||||
Changes in other assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (2,065) | 6,764 | |||||
Inventories | (2,142) | (272) | |||||
Prepaid expenses and other current assets | (3,834) | (1,531) | |||||
Accounts payable and accrued expenses | (6,841) | (3,376) | |||||
Income taxes payable | (6,837) | (10,472) | |||||
Other, net | (6,899) | 2,115 | |||||
Net cash used in operating activities from continuing operations | (292,199) | (1,324) | |||||
Investing activities | |||||||
Purchases of property and equipment | (10,314) | (10,790) | |||||
Other, net | 72 | 36 | |||||
Net cash used in investing activities from continuing operations | (10,242) | (10,754) | |||||
Financing activities | |||||||
Payment of long-term debt | (469,253) | (1,003) | |||||
Dividends paid to common unitholders | (960,981) | — | |||||
Distributions paid to noncontrolling interest | (3) | (3) | |||||
Debt financing costs paid | (292) | — | |||||
Net cash used in financing activities from continuing operations | (1,430,529) | (1,006) | |||||
Net change in cash, cash equivalents, and restricted cash from continuing operations | (1,732,970) | (13,084) | |||||
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS – (continued) ($ in Thousands) | |||||||
Nine Months Ended September 30, | |||||||
2021 | 2020 | ||||||
Cash flows provided by (used in) discontinued operations: | |||||||
Net cash provided by operating activities | $ | 28,965 | $ | 283,506 | |||
Net cash provided by (used in) investing activities | 3,242,836 | (192,913) | |||||
Net cash (used in) provided by financing activities | (5,123) | 55,120 | |||||
Net cash provided by discontinued operations | 3,266,678 | 145,713 | |||||
Effect of exchange rate changes on cash and cash equivalents | — | (255) | |||||
Net change in cash, cash equivalents, and restricted cash | 1,533,708 | 132,374 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 1,839,220 | 358,565 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 3,372,928 | $ | 490,939 | |||
Supplemental disclosures of cash flow information: | |||||||
Non-cash investing and financing activities: | |||||||
Accrued purchases of property and equipment from continuing operations | $ | 680 | $ | 443 | |||
Accrued purchases of property and equipment from discontinued operations | 4,201 | 14,848 | |||||
Leased assets obtained in exchange for new operating lease liabilities from discontinued operations | 14,666 | 9,419 | |||||
Cash distribution declared, but not yet paid | 3,297,420 | — | |||||
Taxes received, net, from continuing operations | (625) | — | |||||
Taxes paid, net, from discontinued operations | 143,906 | 4,970 | |||||
Interest paid, net, from continuing operations | 12,901 | 10,165 | |||||
Interest paid, net, from discontinued operations | 29,616 | 68,544 | |||||
The following table provides a reconciliation of cash, cash equivalents, and restricted cash from both continuing and discontinued operations reported within the consolidated condensed balance sheets that is presented in the consolidated condensed statements of cash flows:
As of September 30, | |||||||
2021 | 2020 | ||||||
Cash and cash equivalents | $ | 3,371,973 | $ | 32,667 | |||
Restricted cash - current | 955 | 1,374 | |||||
Cash, cash equivalents, and restricted cash included in assets held for sale | — | 456,898 | |||||
Total of cash, cash equivalents, and restricted cash shown in the consolidated condensed statements of cash flows | $ | 3,372,928 | $ | 490,939 | |||
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS – MD&A | |||||||||||||||||||||||||||
Quarter Ended | Change Favorable/(Unfavorable) | Nine Months Ended | Change Favorable/(Unfavorable) | ||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||
($ In Thousands, Except Unit and Per Unit Data) (Unaudited) | |||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||
Product revenue | $ | 60,086 | $ | 39,036 | 21,050 | 54 | $ | 173,413 | $ | 136,293 | 37,120 | 27 | |||||||||||||||
Total revenue | 60,086 | 39,036 | 21,050 | 54 | 173,413 | 136,293 | 37,120 | 27 | |||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||
Cost of product sales | 40,613 | 25,059 | (15,554) | (62) | 113,203 | 85,218 | (27,985) | (33) | |||||||||||||||||||
Selling, general and administrative | 61,704 | 11,135 | (50,569) | NM | 88,429 | 40,561 | (47,868) | (118) | |||||||||||||||||||
Disposition payment to Manager | 228,551 | — | (228,551) | NM | 228,570 | — | (228,570) | NM | |||||||||||||||||||
Total Selling, general and administrative | 290,255 | 11,135 | (279,120) | NM | 316,999 | 40,561 | (276,438) | NM | |||||||||||||||||||
Fees to Manager - related party | 7,698 | 4,980 | (2,718) | (55) | 20,801 | 16,160 | (4,641) | (29) | |||||||||||||||||||
Depreciation and amortization | 3,864 | 3,822 | (42) | (1) | 11,452 | 11,224 | (228) | (2) | |||||||||||||||||||
Total operating expenses | 342,430 | 44,996 | (297,434) | NM | 462,455 | 153,163 | (309,292) | NM | |||||||||||||||||||
Operating loss | (282,344) | (5,960) | (276,384) | NM | (289,042) | (16,870) | (272,172) | NM | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||
Interest income | 6 | (42) | 48 | 114 | 22 | 22 | — | — | |||||||||||||||||||
Interest expense(1) | (948) | (4,905) | 3,957 | 81 | (13,991) | (16,215) | 2,224 | 14 | |||||||||||||||||||
Other income (expense), net | 180 | (769) | 949 | 123 | (238) | (937) | 699 | 75 | |||||||||||||||||||
Net loss from continuing operations before income taxes | (283,106) | (11,676) | (271,430) | NM | (303,249) | (34,000) | (269,249) | NM | |||||||||||||||||||
Benefit for income taxes | 8,455 | 6,186 | 2,269 | 37 | 6,788 | 8,808 | (2,020) | (23) | |||||||||||||||||||
Net loss from continuing operations | (274,651) | (5,490) | (269,161) | NM | (296,461) | (25,192) | (271,269) | NM | |||||||||||||||||||
Discontinued Operations | |||||||||||||||||||||||||||
Net income (loss) from discontinued operations before income taxes | 3,004,955 | (718,061) | 3,723,016 | NM | 3,063,442 | (688,499) | 3,751,941 | NM | |||||||||||||||||||
Provision for income taxes | (50,511) | (169,819) | 119,308 | 70 | (66,458) | (175,750) | 109,292 | 62 | |||||||||||||||||||
Net income (loss) from discontinued operations | 2,954,444 | (887,880) | 3,842,324 | NM | 2,996,984 | (864,249) | 3,861,233 | NM | |||||||||||||||||||
Net income (loss) | 2,679,793 | (893,370) | 3,573,163 | NM | 2,700,523 | (889,441) | 3,589,964 | NM | |||||||||||||||||||
Net loss from continuing operations | (274,651) | (5,490) | (269,161) | NM | (296,461) | (25,192) | (271,269) | NM | |||||||||||||||||||
Less: net (loss) income attributable to noncontrolling interests | (14) | (122) | (108) | (89) | 167 | 459 | 292 | 64 | |||||||||||||||||||
Net loss from continuing operations attributable to MIH | (274,637) | (5,368) | (269,269) | NM | (296,628) | (25,651) | (270,977) | NM | |||||||||||||||||||
Net income (loss) from discontinued operations | 2,954,444 | (887,880) | 3,842,324 | NM | 2,996,984 | (864,249) | 3,861,233 | NM | |||||||||||||||||||
Net income (loss) from discontinued operations attributable to MIH | 2,954,444 | (887,880) | 3,842,324 | NM | 2,996,984 | (864,249) | 3,861,233 | NM | |||||||||||||||||||
Net income (loss) attributable to MIH | $ | 2,679,807 | $ | (893,248) | 3,573,055 | NM | $ | 2,700,356 | $ | (889,900) | 3,590,256 | NM | |||||||||||||||
Basic loss per unit from continuing operations attributable to MIH | $ | (3.12) | $ | (0.06) | (3.06) | NM | $ | (3.38) | $ | (0.29) | (3.09) | NM | |||||||||||||||
Basic income (loss) per unit from discontinued operations attributable to MIH | 33.61 | (10.20) | 43.81 | NM | 34.19 | (9.95) | 44.14 | NM | |||||||||||||||||||
Basic income (loss) per unit attributable to MIH | $ | 30.49 | $ | (10.26) | 40.75 | NM | $ | 30.81 | $ | (10.24) | 41.05 | NM | |||||||||||||||
Weighted average number of units outstanding: basic | 87,891,018 | 87,030,751 | 860,267 | 1 | 87,645,390 | 86,864,951 | 780,439 | 1 | |||||||||||||||||||
NM — Not meaningful. | ||||||||
(1) | Interest expense includes non-cash gains on derivative instruments of $8,000 and $213,000 for the quarter and nine months ended September 30, 2021, respectively, compared with non-cash losses of $7,000 and $963,000 for the quarter and nine months ended September 30, 2020, respectively. | |||||||
MACQUARIE INFRASTRUCTURE HOLDINGS, LLC | |||||||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED NET LOSS TO EBITDA EXCLUDING NON-CASH ITEMS AND A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||||||||||||||||||||
Quarter Ended September 30, | Change Favorable/(Unfavorable) | Nine Months Ended September 30, | Change Favorable/(Unfavorable) | ||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||
($ In Thousands) (Unaudited) | |||||||||||||||||||||||||
Net loss from continuing operations | $ | (274,651) | $ | (5,490) | $ | (296,461) | $ | (25,192) | |||||||||||||||||
Interest expense, net(1) | 942 | 4,947 | 13,969 | 16,193 | |||||||||||||||||||||
Benefit for income taxes | (8,455) | (6,186) | (6,788) | (8,808) | |||||||||||||||||||||
Depreciation and amortization | 3,864 | 3,822 | 11,452 | 11,224 | |||||||||||||||||||||
Fees to Manager - related party | 7,698 | 4,980 | 20,801 | 16,160 | |||||||||||||||||||||
Other non-cash income, net(2) | (579) | (21) | (3,221) | (1,319) | |||||||||||||||||||||
EBITDA excluding non-cash items - continuing operations | $ | (271,181) | $ | 2,052 | (273,233) | NM | $ | (260,248) | $ | 8,258 | (268,506) | NM | |||||||||||||
EBITDA excluding non-cash items - continuing operations | $ | (271,181) | $ | 2,052 | $ | (260,248) | $ | 8,258 | |||||||||||||||||
Interest expense, net(1) | (942) | (4,947) | (13,969) | (16,193) | |||||||||||||||||||||
Non-cash interest expense, net(1) | 326 | 1,401 | 4,491 | 5,258 | |||||||||||||||||||||
Benefit for current income taxes | 1,580 | 1,765 | 5,935 | 7,973 | |||||||||||||||||||||
Changes in working capital | (1,331) | 1,191 | (28,408) | (6,620) | |||||||||||||||||||||
Cash (used in) provided by operating activities - continuing operations | (271,548) | 1,462 | (292,199) | (1,324) | |||||||||||||||||||||
Changes in working capital | 1,331 | (1,191) | 28,408 | 6,620 | |||||||||||||||||||||
Maintenance capital expenditures | (2,007) | (1,389) | (4,767) | (5,435) | |||||||||||||||||||||
Free cash flow - continuing operations | $ | (272,224) | $ | (1,118) | (271,106) | NM | $ | (268,558) | $ | (139) | (268,419) | NM | |||||||||||||
NM — Not meaningful. | ||||||||
(1) | Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash amortization of debt discount related to our 2.00% Convertible Senior Notes. For the quarter and nine months ended September 30, 2021, interest expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes and the full repayment of $100.0 million of senior secured notes at Hawaii Gas. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, the Company paid a $4.7 million 'make-whole' payment. | |||||||
(2) | Other non-cash income, net, includes primarily non-cash mark-to-market adjustment of the value of the commodity hedge contracts, non-cash compensation expense incurred in relation to the incentive plans for senior management of our operating businesses, and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash income, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow" above for further discussion. | |||||||
SOURCE Macquarie Infrastructure Holdings, LLC
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