NEW YORK, Feb. 22, 2022 /PRNewswire/ — Macquarie Infrastructure Holdings, LLC (NYSE: MIC) (the “Firm”) as we speak introduced its monetary and operational outcomes from persevering with operations for the fourth quarter and full yr 2021.

“Following the profitable conclusion of the gross sales of our IMTT and Atlantic Aviation companies, our persevering with operations are composed principally of Hawaii Gasoline,” mentioned Christopher Frost, chief government officer of MIC. “The continued approval course of associated to the proposed merger of the Firm with an entity managed by Argo Infrastructure Companions, LP is continuing as anticipated. We proceed to anticipate to obtain the remaining approval from the Hawaii Public Utilities Fee and to conclude the transaction within the first half of 2022.”

“If the merger is concluded on or previous to July 1, 2022, unitholders will obtain merger consideration of $3.83 per unit in money,” Frost added. “If the merger is concluded after July 1, 2022, unitholders will obtain $4.11 per unit in money.”

“Our monetary outcomes from persevering with operations within the fourth quarter and full yr 2021 mirror a continued enhance within the variety of folks visiting Hawaii and the ensuing development in fuel gross sales by our Hawaii Gasoline enterprise,” mentioned Frost.

Monetary and Operational Outcomes

MIC’s ongoing companies embrace Hawaii Gasoline and several other smaller operations collectively engaged in efforts to cut back the associated fee and enhance the reliability and sustainability of power in Hawaii. These companies generate income primarily from the supply of fuel to business, residential, and governmental prospects and the technology of energy.

MIC’s outcomes from persevering with operations in 2021 mirror bettering circumstances for its operations because the variety of guests to Hawaii recovers from COVID-induced lows. The variety of guests to Hawaii elevated to roughly 65% of pre-pandemic ranges for the total yr. The rise within the variety of guests drove resort occupancy and restaurant patronage increased and consequently fuel gross sales by Hawaii Gasoline.

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The quantity of fuel offered by Hawaii Gasoline elevated 21% in 2021 versus 2020. The monetary affect of the rise in gross sales was partially offset by the next common wholesale value of Liquified Petroleum Gasoline distributed by the enterprise. The entire quantity of fuel offered was 11% under the extent recorded in 2019 previous to the pandemic.

Every of MIC’s key monetary efficiency metrics for 2021 mirror the affect of elevated bills of roughly $291.3 million primarily related to the sale of its Atlantic Aviation enterprise and the Firm’s reorganization as a restricted legal responsibility firm. The vast majority of these bills have been incurred within the third quarter of the yr.

MIC recorded a internet loss from persevering with operations of $300.3 million in 2021 in contrast with a internet lack of $96.6 million in 2020.

The Firm reported Adjusted EBITDA excluding non-cash objects from persevering with operations (excluding the above-noted transaction and reorganization bills) of $39.2 million in 2021 versus $34.2 million in 2020.

MIC used $288.2 million of money in working actions in the course of the yr in contrast with use of $46.4 million in 2020.

The Firm reported Adjusted Free Money Move from persevering with operations (excluding the above-noted transaction and reorganization bills) of $27.8 million in 2021 versus $12.1 million in 2020.

Abstract Monetary Data

About MIC

MIC owns and operates companies offering power providers, manufacturing and distribution in Hawaii. For extra info, please go to the MIC web site at www.macquarie.com/mic.

Use of Non-GAAP Measures
Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization (“EBITDA”) excluding non-cash objects and Free Money Move

Along with MIC’s outcomes underneath U.S. GAAP, the Firm makes use of the non-GAAP measures EBITDA excluding non-cash objects and Free Money Move to evaluate the efficiency and prospects of its enterprise.

MIC measures EBITDA excluding non-cash objects as a mirrored image of its capacity to successfully handle the amount of merchandise offered or providers offered, the working margin earned on these transactions and the administration of working bills impartial of its capitalization and tax place.

The Firm believes traders use EBITDA excluding non-cash objects primarily as a measure of its working efficiency and to make comparisons with the working efficiency of different companies whose depreciation and amortization expense could fluctuate from MIC’s, notably the place acquisitions and different non-operating elements are concerned. MIC defines EBITDA excluding non-cash objects as internet earnings (loss) or earnings — essentially the most comparable GAAP measure — earlier than curiosity, taxes, depreciation and amortization and non-cash objects together with impairments, unrealized spinoff features and losses, changes for different non-cash objects and pension expense mirrored within the statements of operations. Different non-cash bills, internet, excludes the adjustment to unhealthy debt expense associated to the precise reserve part, internet of recoveries. EBITDA excluding non-cash objects additionally excludes base administration charges and efficiency charges, if any, whether or not paid in money or models.

MIC defines Free Money Move as money from working actions — essentially the most comparable GAAP measure — much less upkeep capital expenditures and adjusted for adjustments in working capital.

Administration makes use of Free Money Move as a measure of its capacity to fund acquisitions, put money into development tasks, to cut back or repay indebtedness, and/or to return capital to unitholders. GAAP metrics equivalent to internet earnings (loss) don’t present MIC administration with the identical degree of visibility into the efficiency and prospects of the enterprise because of: (i) the capital intensive nature of its operations and the technology of non-cash depreciation and amortization; (ii) models issued to the Firm’s exterior supervisor underneath the Administration Companies Settlement, (iii) the Firm’s capacity to defer all or a portion of present federal earnings taxes; (iv) non-cash mark-to-market adjustment of the worth of spinoff devices; (v) features (losses) associated to the write-off or disposal of belongings or liabilities, (vi) non-cash compensation expense incurred in relation to the motivation plans for senior administration of the Firm’s working enterprise; and (vii) pension expense. Pension bills primarily encompass curiosity expense, anticipated return on plan belongings and amortization of actuarial and efficiency features and losses. Any money contributions to pension plans are mirrored as a discount in Free Money Move and aren’t included in pension expense. Administration believes that exterior customers of its monetary statements, together with traders and analysis analysts, might use Free Money Move to evaluate the Firm’s capacity to fund acquisitions, put money into development tasks, scale back or repay indebtedness, and/or return capital to unitholders.

Administration believes that each EBITDA excluding non-cash objects and Free Money Move help a extra full and correct understanding of the monetary and working efficiency of its enterprise than would in any other case be achieved utilizing GAAP outcomes alone.

Free Money Move doesn’t consider required funds on indebtedness and different mounted obligations or different money objects which can be excluded from MIC’s definition of Free Money Move. Administration notes that Free Money Move could also be calculated in another way by different corporations thereby limiting its usefulness as a comparative measure. Free Money Move must be used as a supplemental measure to assist perceive MIC’s monetary efficiency and never in lieu of its monetary outcomes reported underneath GAAP.

See the tables under for a reconciliation of Internet Loss to EBITDA excluding non-cash objects from persevering with operations and a reconciliation of money offered by (utilized in) working actions from persevering with operations to Free Money Move from persevering with operations.

Classification of Upkeep Capital Expenditures and Progress Capital Expenditures

MIC categorizes capital expenditures as both upkeep capital expenditures or development capital expenditures. As neither upkeep capital expenditure nor development capital expenditure is a GAAP time period, the Firm has adopted a framework to categorize particular capital expenditures. In broad phrases, upkeep capital expenditures primarily preserve MIC’s present ranges of operations, functionality, profitability, or money circulate, whereas development capital expenditures primarily present new or enhanced ranges of operations, functionality, profitability, or money circulate. Administration considers numerous elements in figuring out whether or not a particular capital expenditure will probably be categorised as upkeep or development.

MIC doesn’t bifurcate particular capital expenditures into development and upkeep elements. Every discrete capital expenditure is taken into account throughout the above framework and the whole capital expenditure is classed as both upkeep or development.

Disclaimer on Ahead Wanting Statements

This communication comprises forward-looking statements. The Firm could, in some circumstances, use phrases equivalent to “venture,” “consider,” “anticipate,” “plan,” “anticipate,” “estimate,” “intend,” “ought to,” “would,” “might,” “probably” or “could” or different phrases that convey uncertainty of future occasions or outcomes to establish these forward-looking statements. Such statements embrace, amongst others, these in regards to the Firm’s anticipated monetary efficiency and strategic and operational plans, statements concerning the proposed sale of the Firm and the anticipated makes use of of any proceeds therefrom, statements concerning the anticipated particular and general impacts of the COVID-19 pandemic, in addition to all assumptions, expectations, predictions, intentions, or beliefs about future occasions. Ahead-looking statements on this communication are topic to quite a lot of dangers and uncertainties, a few of that are past the Firm’s management, together with, amongst different issues: adjustments on the whole financial or enterprise circumstances; the continuing affect of the COVID-19 pandemic; the Firm’s capacity to finish the introduced sale; uncertainties as to the timing of the consummation of the proposed transaction; the chance that circumstances to closing of the proposed transaction aren’t glad, together with the failure to well timed acquire the requisite approvals or regulatory clearances; the incidence of any occasion giving rise to a termination of the proposed transaction; the Firm’s capacity to service, adjust to the phrases of and refinance debt; its capacity to retain or change certified staff; within the absence of a sale, its capacity to finish development tasks, deploy development capital and handle development, make and finance future acquisitions and implement its technique; the regulatory surroundings; demographic tendencies; the political surroundings; the financial system, tourism, building and transportation prices; air journey; environmental prices and dangers; gasoline and fuel and different commodity prices; the Firm’s capacity to get well will increase in prices from prospects; cybersecurity dangers; work interruptions or different labor stoppages; dangers related to acquisitions or inclinations; litigation dangers; reliance on sole or restricted supply suppliers, dangers or conflicts of pursuits involving the Firm’s relationship with the Macquarie Group; and adjustments in U.S. federal tax legislation. These and different dangers and uncertainties are described underneath the caption “Threat Elements” in Merchandise 1A of the Firm’s Annual Report on Type 10-Okay for the yr ended December 31, 2021, and in its different experiences filed once in a while with the SEC.

The Firm’s precise outcomes, efficiency, prospects, or alternatives might differ materially from these expressed in or implied by the forward-looking statements. Extra dangers of which the Firm will not be at present conscious might additionally trigger its precise outcomes to vary. In mild of those dangers, uncertainties, and assumptions, you shouldn’t place undue reliance on any forward-looking statements. The forward-looking occasions mentioned on this press launch could not happen. These forward-looking statements are made as of the date of this press launch. The Firm undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as required by legislation.

2020

2019

Money flows offered by (utilized in) discontinued operations:

Internet money offered by working actions

$ 28,965

$ 386,983

$ 389,966

Internet money offered by investing actions

3,242,836

1,253,261

10,797

Internet money utilized in financing actions

(5,123)

(10,700)

(337,095)