PR Newswire | Aug 3, 2021 07:02AM EDT

08/03 06:00 CDT

MIC Reports Second Quarter 2021 Financial And Operational Results- Strong leisure and tourism activity drives solid Atlantic Aviation results and bolsters MIC Hawaii performance- Sales of Atlantic Aviation and MIC Hawaii on track, record and meeting dates for Special Meeting of Shareholders set NEW YORK, Aug. 3, 2021

NEW YORK, Aug. 3, 2021 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE: MIC) (the "Company") today provided an update on the previously announced sales of its Atlantic Aviation and MIC Hawaii businesses and reported its operational and financial results for the second quarter of 2021.

"The increase in general aviation flight activity drove strong results in the quarter for Atlantic Aviation," said Christopher Frost, chief executive officer of MIC. "Within our MIC Hawaii segment, we benefited from an increase in visitor arrivals in Hawaii."

Update on Announced Sales

On June 7, 2021, MIC announced the sale of its Atlantic Aviation business (the "AA Transaction") to a newly formed entity controlled by KKR for $4.475 billion. On July 15, 2021, the waiting period for the Federal Trade Commission's review of the AA Transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without comment.

The MIC Board of Directors set August 23, 2021 as the record date for a Special Meeting of Shareholders to be held at 10:00 am Eastern time on September 21, 2021. At the meeting, shareholders will be asked to approve the AA Transaction. If approved, MIC expects the AA Transaction to close at the end of the third quarter of 2021 and result in a distribution of approximately $37.35 per unit.

On June 14, 2021, MIC announced the merger of its MIC Hawaii businesses (the "MH Merger") into a newly formed entity managed by Argo Infrastructure Partners ("Argo") for $3.83 per unit.

On July 7, 2021, together with MIC Hawaii and Argo, the Company filed a petition with the Hawaii Public Utilities Commission seeking approval of the change of control over the regulated portion of Hawaii Gas as contemplated in the MH Merger. The approval process is expected to conclude in the first half of 2022. Shareholders will be asked to approve the MH Merger, in addition to the AA Transaction, at the September 21, 2021 Special Meeting of Shareholders.

Operational and Financial Results

MIC's results for the second quarter of 2021 reflect solid performance by its Atlantic Aviation subsidiary on the strength of the recovery in domestic general aviation flight activity and a continued positive trajectory in the performance of its MIC Hawaii businesses as tourism in Hawaii recovers from COVID-induced lows.

MIC recorded net income from continuing operations of $6.9 million compared with a net loss of $24.4 million in the second quarter of 2020 ("prior comparable period"). The improvement reflects primarily higher revenue and lower interest expense, partially offset by increases in operating expenses and income taxes.

The Company reported Adjusted EBITDA excluding non-cash items from continuing operations of $77.9 million for the quarter, versus $18.6 million in the prior comparable period.

MIC used $79.5 million of cash from operating activities during the quarter ended June 30, 2021 compared with cash provided by operating activities of $17.8 million in the prior comparable period. The change primarily reflects the payment of capital gains taxes related to the sale of the Company's IMTT business, partially offset by higher EBITDA excluding non-cash items.

The Company reported Adjusted Free Cash Flow from continuing operations of $51.6 million for the quarter, versus $1.2 million in the prior comparable period. The increase reflects higher EBITDA excluding non-cash items and lower cash interest, partially offset by higher cash taxes and maintenance capital expenditures.

Second Quarter 2021 Segment Results

Atlantic Aviation

Atlantic Aviation generated EBITDA excluding non-cash items of $70.3 million in the second quarter of 2021, up from $16.9 million in the prior comparable period and above the $61.9 million recorded in the second quarter of 2019. The result was driven by a substantial recovery in general aviation flight activity (take offs and landings) versus the second quarter in 2020.

As reported by the Federal Aviation Administration, same store general aviation flight activity at airports on which Atlantic Aviation operates increased by 137% in the second quarter compared with the second quarter of 2020 and increased by 11% versus the second quarter of 2019. The activity was substantially domestic in nature and was strongest at predominantly leisure-oriented destinations in the Intermountain West and Florida. Although activity at business-oriented destinations increased during the quarter, it remains below industry average and pre-pandemic levels.

MIC Hawaii

MIC Hawaii generated EBITDA excluding non-cash items of $11.1 million in the second quarter of 2021, up from $7.2 million in the second quarter of 2020 and down from $14.3 million in the second quarter in 2019. The result reflects the ongoing recovery in the number of visitors to Hawaii from the lows in 2020, although not yet to the historically high levels of 2019, partially offset by a higher cost of purchased propane.

Commercial and industrial gas consumption increased during the quarter with the higher number of visitor arrivals while residential gas consumption was stable. Total gas consumption increased by 54% versus the second quarter in 2020 but was 8% below consumption in the second quarter of 2019.

Corporate and Other

MIC's Corporate and Other segment result primarily includes fees payable to the Company's external manager, public company expenses and interest expense on holding company level debt. Higher expenditures in the second quarter of 2021, including costs incurred in connection with efforts to sell the Company's operating businesses, resulted in the generation of EBITDA excluding non-cash items of ($10.1) million compared with ($7.3) million the second quarter of 2020.

Discontinuing Financial Guidance

With the announced sales of Atlantic Aviation and MIC Hawaii, the Company will no longer provide outlook on the performance of its businesses and is withdrawing its previously provided guidance.

Summary Financial Information

Change Change Quarter Ended Six Months Ended Favorable/ Favorable/ June 30, June 30, (Unfavorable) (Unfavorable)

2021 2020 $ % 2021 2020 $ %

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

GAAP Metrics

Continuing Operations

Net income (loss) $6,933 $(24,429)31,362 128 $20,730 $(31,417)52,147 166

Net income (loss) per share 0.08 (0.29) 0.37 128 0.23 (0.37) 0.60 162 attributable to MIC

Cash (used in) provided by (79,539) 17,779 (97,318)NM (39,546) 69,319 (108,865)(157)operating activities

Discontinued Operations

Net income $- $17,131 (17,131)(100)$- $35,346 (35,346) (100)

Net income per share attributable- 0.20 (0.20) (100)- 0.41 (0.41) (100)to MIC

Cash provided by operating - 54,588 (54,588)(100)- 103,276 (103,276)(100)activities

Weighted average number of shares 87,628,42986,871,892756,537 1 87,520,54186,779,432741,109 1 outstanding: basic

MIC Non-GAAP Metrics

EBITDA excluding non-cash items - $71,278 $16,878 54,400 NM $143,928 $81,342 62,586 77 continuing operations

Investment and acquisition/ 6,596 1,719 4,877 NM 10,875 12,826 (1,951) (15) disposition costs

Adjusted EBITDA excluding non - cash 77,874 18,597 59,277 NM 154,803 94,168 60,635 64 items-continuing operations

Cash interest (15,387) (19,264) 3,877 20 (28,442) (37,834) 9,392 25

Cash taxes (4,730) 5,638 (10,368)(184)(7,939) 818 (8,757) NM

Maintenance capital (6,140) (3,738) (2,402) (64) (9,804) (9,452) (352) (4) expenditures

Adjusted Free Cash Flow - continuing $51,617 $1,233 50,384 NM $108,618 $47,700 60,918 128 operations

EBITDA excluding non-cash items - $- $67,689 (67,689)(100)$- $145,336 (145,336)(100)discontinued operations

Cash interest - (10,059) 10,059 100 - (19,828) 19,828 100

Cash taxes - (847) 847 100 - (2,954) 2,954 100

Maintenance capital - (12,872) 12,872 100 - (18,487) 18,487 100 expenditures

Free Cash Flow - discontinued $- $43,911 (43,911)(100)$- $104,067 (104,067)(100)operations

Adjusted Free Cash Flow - $51,617 $45,144 6,473 14 $108,618 $151,767 (43,149) (28) consolidated

___________________

NM - Not meaningful.

About MIC

MIC owns and operates businesses providing basic services to customers in the United States. Its businesses consist of an airport services business, Atlantic Aviation; and entities comprising an energy services, production and distribution segment, MIC 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 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 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 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 -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, reduce, or repay indebtedness and/or return capital to shareholders. 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 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 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, reduce or repay indebtedness, and/or return capital to shareholders.

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 and Other. 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 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 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.

Important Information For Investors And Stockholders

In connection with the proposed transactions, Macquarie Infrastructure Corporation (the "Company") has filed a proxy statement with the Securities and Exchange Commission ("SEC") on July 15, 2021, the definitive version of which will be mailed to stockholders of the Company. INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders are able to obtain free copies of the proxy statement and other documents filed with the SEC by the Company through the website maintained by the SEC at https://www.sec.gov. Copies of the documents filed with the SEC by the Company will also be available free of charge on the Company website at www.macquarie.com/mic or by writing to us at 125 West 55th Street, New York, New York 10019, United States of America, Attention: Investor Relations.

Certain Information Regarding Participants

The Company and its directors and executive officers may be considered participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of the Company is set forth in its Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on February 17, 2021, and its definitive proxy statement for its 2021 annual meeting of stockholders, which was filed with the SEC on March 29, 2021. Other information regarding the participants of the Company in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC regarding the transaction when they become available.

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 sales of the Company's operating businesses (including the Company's reorganization) 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 sales of its operating businesses; uncertainties as to the timing of the consummation of the proposed transactions; the risk that conditions to closing of the proposed transactions are not satisfied, including the failure to timely obtain the requisite stockholder approvals or regulatory clearances; the occurrence of any event giving rise to a termination of the proposed transactions; 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 or sales of its businesses, 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 communication may not occur. These forward-looking statements are made as of the date of this communication. 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 CORPORATION



CONSOLIDATED CONDENSED BALANCE SHEETS

($ in Thousands, Except Share Data)



June 30, December 31, 2021 2020

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $319,690 $1,828,063

Restricted cash 11,790 11,157

Accounts receivable, net of allowance for doubtful55,057 46,862 accounts

Inventories 19,663 16,551

Prepaid expenses 13,385 8,326

Other current assets 12,101 9,197

Total current assets 431,686 1,920,156

Property, equipment, land and leasehold 849,530 854,200 improvements, net

Operating lease assets, net 321,941 322,892

Goodwill 617,072 616,939

Intangible assets, net 441,012 457,587

Other noncurrent assets 8,863 6,865

Total assets $2,670,104$4,178,639

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Due to Manager-related party $2,755 $1,203

Accounts payable 31,406 30,470

Accrued expenses 50,177 46,112

Current portion of long-term debt 11,333 11,310

Dividend payable - 960,981

Operating lease liabilities - current 17,069 17,157

Income taxes payable 3,200 132,113

Other current liabilities 24,121 22,861

Total current liabilities 140,061 1,222,207

Long-term debt, net of current portion 1,097,923 1,554,359

Deferred income taxes 132,738 126,858

Operating lease liabilities - noncurrent 311,122 311,597

Other noncurrent liabilities 64,893 70,312

Total liabilities 1,746,737 3,285,333

Commitments and contingencies - -

Stockholders' equity^(1):

Common Stock ($0.001 par value; 500,000,000 authorized; 87,780,539 shares issued and $88 $87 outstanding on June 30, 2021 and 87,361,929 shares issued and outstanding on December 31, 2020)

Additional paid in capital 180,346 177,975

Accumulated other comprehensive loss (6,175) (6,175)

Retained earnings 740,640 713,129

Total stockholders' equity 914,899 885,016

Noncontrolling interests 8,468 8,290

Total equity 923,367 893,306

Total liabilities and equity $2,670,104$4,178,639

_____________________

The Company is authorized to issue 100,000,000 shares of preferred stock, par value $0.001 per share authorized. On June 30, 2021 and December 31, (1)2020, no preferred stocks were issued or outstanding. The Company had 100 shares of special stock, par value $0.001 per share, issued and outstanding to its Manager on June 30, 2021 and December 31, 2020.

MACQUARIE INFRASTRUCTURE CORPORATION



CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

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



Quarter Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Revenue

Service revenue $230,037 $104,318 $439,641 $328,315

Product revenue 58,740 36,795 113,327 97,257

Total revenue 288,777 141,113 552,968 425,572

Costs and expenses

Cost of services 99,534 29,280 181,767 123,943

Cost of product sales 37,834 18,225 72,590 60,159

Selling, general and 80,822 73,049 157,834 160,632 administrative

Fees to Manager - related 7,551 3,824 13,103 11,180 party

Depreciation 19,629 19,745 38,860 39,271

Amortization of 8,287 9,273 16,575 20,278 intangibles

Total operating expenses 253,657 153,396 480,729 415,463

Operating income (loss) 35,120 (12,283) 72,239 10,109

Other income (expense)

Interest income 41 189 202 657

Interest expense^(1) (16,773) (23,639) (35,392) (50,344)

Other income (expense), 793 46 1,295 (100) net

Net income (loss) from continuing operations 19,181 (35,687) 38,344 (39,678) before income taxes

(Provision) benefit for (12,248) 11,258 (17,614) 8,261 income taxes

Net income (loss) from 6,933 (24,429) 20,730 (31,417) continuing operations



Discontinued Operations^ (2)

Net income from discontinued operations - 22,371 - 46,916 before income taxes

Provision for income taxes- (5,240) - (11,570)

Net income from - 17,131 - 35,346 discontinued operations

Net income (loss) 6,933 (7,298) 20,730 3,929



Net income (loss) from 6,933 (24,429) 20,730 (31,417) continuing operations

Less: net (loss) income attributable to (416) 656 181 581 noncontrolling interest

Net income (loss) from continuing operations 7,349 (25,085) 20,549 (31,998) attributable to MIC

Net income from - 17,131 - 35,346 discontinued operations

Net income from discontinued operations - 17,131 - 35,346 attributable to MIC

Net income (loss) $7,349 $(7,954) $20,549 $3,348 attributable to MIC



Basic income (loss) per share from continuing $0.08 $(0.29) $0.23 $(0.37) operations attributable to MIC

Basic income per share from discontinued - 0.20 - 0.41 operations attributable to MIC

Basic income (loss) per $0.08 $(0.09) $0.23 $0.04 share attributable to MIC

Weighted average number of87,628,42986,871,89287,520,54186,779,432shares outstanding: basic



Diluted income (loss) per share from continuing $0.08 $(0.29) $0.23 $(0.37) operations attributable to MIC

Diluted income per share from discontinued - 0.20 - 0.41 operations attributable to MIC

Diluted income (loss) per $0.08 $(0.09) $0.23 $0.04 share attributable to MIC

Weighted average number of shares outstanding: 87,728,17486,871,89287,612,37986,779,432diluted

____________________

Interest expense includes non-cash losses on derivative instruments of $78,000 and non-cash gains of $203,000 for the quarter and six months (1)ended June 30, 2021, respectively, compared with non-cash losses of $172,000 and $4.4 million for the quarter and six months ended June 30, 2020, respectively.



See Note 4, "Discontinued Operations and Dispositions", in our Notes to (2)Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended June 30, 2021, for discussions on businesses classified as held for sale.

MACQUARIE INFRASTRUCTURE CORPORATION



CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

($ in Thousands)



Six Months Ended June 30,

2021 2020

Operating activities

Net income (loss) from continuing operations $ 20,730 $(31,417)

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities from continuing operations:

Depreciation 38,860 39,271

Amortization of intangibles 16,575 20,278

Write-off of debt financing costs 4,562 1,468

Amortization of debt discount and financing costs 2,476 5,218

Adjustments to derivative instruments (5,153) 1,192

Fees to Manager - related party 13,103 11,180

Deferred taxes 9,675 (7,443)

Other non-cash expense, net 6,647 4,944

Changes in other assets and liabilities, net of acquisitions:

Accounts receivable (8,136) 25,756

Inventories (3,720) 6,079

Prepaid expenses and other current assets (5,480) (2,734)

Due to Manager - related party - (41)

Accounts payable and accrued expenses 3,988 (13,010)

Income taxes payable (128,085) (2,263)

Other, net (5,588) 10,841

Net cash (used in) provided by operating activities(39,546) 69,319 from continuing operations

Investing activities

Acquisitions of businesses and investments, net of cash, cash equivalents, and restricted cash - (13,495) acquired

Purchases of property and equipment (32,864) (29,285)

Other, net 59 11

Net cash used in investing activities from (32,805) (42,769) continuing operations

Financing activities

Proceeds from long-term debt - 874,000

Payment of long-term debt (474,113) (280,874)

Dividends paid to common stockholders (960,981) (86,742)

Distributions paid to noncontrolling interest (3) -

Debt financing costs paid (292) (386)

Net cash (used in) provided by financing activities(1,435,389)505,998 from continuing operations

Net change in cash, cash equivalents, and (1,507,740)532,548 restricted cash from continuing operations

MACQUARIE INFRASTRUCTURE CORPORATION



CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - (continued)

(Unaudited)

($ in Thousands)



Six Months Ended June 30,

2021 2020

Cash flows provided by (used in) discontinued operations:

Net cash provided by operating activities $- $103,276

Net cash used in investing activities - (106,003)

Net cash used in discontinued operations - (2,727)

Effect of exchange rate changes on cash and cash - (222) equivalents

Net change in cash, cash equivalents, and (1,507,740) 529,599 restricted cash

Cash, cash equivalents, and restricted cash, 1,839,220 358,565 beginning of period

Cash, cash equivalents, and restricted cash, end of$331,480 $888,164 period

Supplemental disclosures of cash flow information:

Non-cash investing and financing activities:

Accrued purchases of property and equipment from $6,231 $3,317 continuing operations

Accrued purchases of property and equipment from - 15,939 discontinued operations

Accrued debt financing costs from continuing - 59 operations

Leased assets obtained in exchange for new operating lease liabilities from continuing 806 5,267 operations

Leased assets obtained in exchange for new operating lease liabilities from discontinued - 726 operations

Taxes paid, net, from continuing operations 135,894 1,444

Taxes paid, net, from discontinued operations - 2,653

Interest paid, net, from continuing operations 32,899 39,205

Interest paid, net, from discontinued operations - 19,689

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 June 30,

2021 2020

Cash and cash equivalents $319,690$845,604

Restricted cash - current 11,790 13,721

Cash, cash equivalents, and restricted cash included in- 28,839 assets held for sale

Total of cash, cash equivalents, and restricted cash shown in the consolidated condensed statements of cash $331,480$888,164flows

MACQUARIE INFRASTRUCTURE CORPORATION



CONSOLIDATED STATEMENTS OF OPERATIONS - MD&A



Quarter Ended Change Six Months Ended Change June 30, Favorable/(Unfavorable)June 30, Favorable/(Unfavorable)

2021 2020 $ % 2021 2020 $ %

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

Revenue

Service revenue $230,037 $104,318 125,719 121 $439,641 $328,315 111,326 34

Product revenue 58,740 36,795 21,945 60 113,327 97,257 16,070 17

Total revenue 288,777 141,113 147,664 105 552,968 425,572 127,396 30

Costs and expenses

Cost of services 99,534 29,280 (70,254) NM 181,767 123,943 (57,824) (47)

Cost of product 37,834 18,225 (19,609) (108) 72,590 60,159 (12,431) (21) sales

Selling, general 80,822 73,049 (7,773) (11) 157,834 160,632 2,798 2 and administrative

Fees to Manager - 7,551 3,824 (3,727) (97) 13,103 11,180 (1,923) (17) related party

Depreciation and 27,916 29,018 1,102 4 55,435 59,549 4,114 7 amortization

Total operating 253,657 153,396 (100,261) (65) 480,729 415,463 (65,266) (16) expenses

Operating income 35,120 (12,283) 47,403 NM 72,239 10,109 62,130 NM (loss)

Other income (expense)

Interest income 41 189 (148) (78) 202 657 (455) (69)

Interest expense^ (16,773) (23,639) 6,866 29 (35,392) (50,344) 14,952 30 (1)

Other income 793 46 747 NM 1,295 (100) 1,395 NM (expense), net

Net income (loss) from continuing 19,181 (35,687) 54,868 154 38,344 (39,678) 78,022 197 operations before income taxes

(Provision) benefit for income(12,248) 11,258 (23,506) NM (17,614) 8,261 (25,875) NM taxes

Net income (loss) from continuing 6,933 (24,429) 31,362 128 20,730 (31,417) 52,147 166 operations



Discontinued Operations

Net income from discontinued - 22,371 (22,371) (100) - 46,916 (46,916) (100) operations before income taxes

Provision for - (5,240) 5,240 100 - (11,570) 11,570 100 income taxes

Net income from discontinued - 17,131 (17,131) (100) - 35,346 (35,346) (100) operations

Net income (loss) 6,933 (7,298) 14,231 195 20,730 3,929 16,801 NM



Net income (loss) from continuing 6,933 (24,429) 31,362 128 20,730 (31,417) 52,147 166 operations

Less: net (loss) income attributable to (416) 656 1,072 163 181 581 400 69 noncontrolling interests

Net income (loss) from continuing operations 7,349 (25,085) 32,434 129 20,549 (31,998) 52,547 164 attributable to MIC

Net income from discontinued - 17,131 (17,131) (100) - 35,346 (35,346) (100) operations

Net income from discontinued operations - 17,131 (17,131) (100) - 35,346 (35,346) (100) attributable to MIC

Net income (loss) attributable to $7,349 $(7,954) 15,303 192 $20,549 $3,348 17,201 NM MIC



Basic income (loss) per share from continuing $0.08 $(0.29) 0.37 128 $0.23 $(0.37) 0.60 162 operations attributable to MIC

Basic income per share from discontinued - 0.20 (0.20) (100) - 0.41 (0.41) (100) operations attributable to MIC

Basic income (loss) per share $0.08 $(0.09) 0.17 189 $0.23 $0.04 0.19 NM attributable to MIC

Weighted average number of shares 87,628,42986,871,892756,537 1 87,520,54186,779,432741,109 1 outstanding: basic

___________________

NM - Not meaningful.



Interest expense includes non-cash losses on derivative instruments of $78,000 and non-cash gains of $203,000 for the quarter and six months (1)ended June 30, 2021, respectively, compared with non-cash losses of $172,000 and $4.4 million for the quarter and six months ended June 30, 2020, respectively.

MACQUARIE INFRASTRUCTURE CORPORATION



RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO EBITDA EXCLUDING

NON-CASH ITEMS AND A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW



Quarter Ended Change Six Months Ended Change June 30, Favorable/(Unfavorable) June 30, Favorable/(Unfavorable)

2021 2020 $ % 2021 2020 $ %

($ In Thousands) (Unaudited)

Net income (loss) from $6,933 $(24,429) $20,730 $(31,417) continuing operations

Interest expense, net16,732 23,450 35,190 49,687 ^(1)

Provision (benefit) 12,248 (11,258) 17,614 (8,261) for income taxes

Depreciation and 27,916 29,018 55,435 59,549 amortization

Fees to Manager - 7,551 3,824 13,103 11,180 related party

Other non-cash (income) (102) (3,727) 1,856 604 expense, net ^(2)

EBITDA excluding non-cash $71,278 $16,878 54,400 NM $143,928$81,342 62,586 77 items - continuing operations



EBITDA excluding non-cash $71,278 $16,878 $143,928$81,342 items - continuing operations

Interest expense, net(16,732) (23,450) (35,190) (49,687) ^(1)

Non-cash interest 1,345 4,186 6,748 11,853 expense, net ^(1)

(Provision) benefit for (4,730) 5,638 (7,939) 818 current income taxes

Changes in working (130,700)14,527 (147,093)24,993 capital

Cash (used in) provided by operating(79,539) 17,779 (39,546) 69,319 activities - continuing operations

Changes in working 130,700 (14,527) 147,093 (24,993) capital

Maintenance capital (6,140) (3,738) (9,804) (9,452) expenditures

Free cash flow - $45,021 $(486) 45,507 NM $97,743 $34,874 62,869 180 continuing operations

__________________

NM - Not meaningful.



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 six months ended June 30, 2021, interest (1)expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes, the cancellation of the holding company revolving credit facility in January 2021, and the full repayment of the Hawaii Gas $100.0 million senior secured notes. 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.



Other non-cash (income) expense, 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. (2)Other non-cash (income) expense, 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.

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

Atlantic Aviation

Quarter Ended Six Months Ended Change Change June 30, June 30, Favorable/(Unfavorable)Favorable/(Unfavorable) 2021 2020 2021 2020

$ $ $ % $ $ $ %

($ In Thousands) (Unaudited)

Service 230,037 104,318 125,719 121 439,641 328,315 111,326 34 revenue

Cost of services (exclusive of depreciation and 99,534 29,280 (70,254) NM 181,767 123,943 (57,824) (47) amortization shown separately below)

Gross margin 130,503 75,038 55,465 74 257,874 204,372 53,502 26

Selling, general and 62,512 58,860 (3,652) (6) 124,098 123,000 (1,098) (1) administrative expenses

Depreciation and 23,589 24,865 1,276 5 46,889 51,444 4,555 9 amortization

Operating 44,402 (8,687) 53,089 NM 86,887 29,928 56,959 190 income (loss)

Interest expense, net^ (10,764)(14,129)3,365 24 (21,494)(33,005)11,511 35 (1)

Other income 2 (133) 135 102 (16) (205) 189 92 (expense), net

(Provision) benefit for (9,015) 6,401 (15,416) NM (17,611)922 (18,533) NM income taxes

Net income 24,625 (16,548)41,173 NM 47,766 (2,360) 50,126 NM (loss)

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

Net income 24,625 (16,548) 47,766 (2,360) (loss)

Interest expense, net^ 10,764 14,129 21,494 33,005 (1)

Provision (benefit) for 9,015 (6,401) 17,611 (922) income taxes

Depreciation and 23,589 24,865 46,889 51,444 amortization

Other non-cash expense, net^ 2,326 849 3,895 1,662 (2)

EBITDA excluding 70,319 16,894 53,425 NM 137,655 82,829 54,826 66 non-cash items



EBITDA excluding 70,319 16,894 137,655 82,829 non-cash items

Interest expense, net^ (10,764)(14,129) (21,494)(33,005) (1)

Non-cash interest 938 2,486 1,881 7,645 expense, net^ (1)

(Provision) benefit for (6,490) 8,497 (10,970)(80) current income taxes

Changes in working 6,961 8,050 8,877 23,717 capital

Cash provided by operating 60,964 21,798 115,949 81,106 activities

Changes in working (6,961) (8,050) (8,877) (23,717) capital

Maintenance capital (4,494) (2,361) (7,044) (5,406) expenditures

Free cash flow49,509 11,387 38,122 NM 100,028 51,983 48,045 92

____________________

NM - Not meaningful.



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



Other non-cash expense, net, includes primarily non-cash compensation expense incurred in relation to incentive plans and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash expense, net, excludes the adjustment to bad debt expense (2)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.

MIC Hawaii



Quarter Ended Six Months Ended Change Change June 30, June 30, Favorable/(Unfavorable)Favorable/(Unfavorable) 2021 2020 2021 2020

$ $ $ % $ $ $ %

($ In Thousands) (Unaudited)

Product 58,740 36,795 21,945 60 113,32797,257 16,070 17 revenue

Cost of product sales (exclusive of depreciation and 37,834 18,225 (19,609) (108) 72,590 60,159 (12,431) (21) amortization shown separately below)

Gross margin 20,906 18,570 2,336 13 40,737 37,098 3,639 10

Selling, general and 6,929 6,438 (491) (8) 12,606 12,760 154 1 administrative expenses

Depreciation and 3,840 3,778 (62) (2) 7,588 7,402 (186) (3) amortization

Operating 10,137 8,354 1,783 21 20,543 16,936 3,607 21 income

Interest expense, net^ (5,664)(1,780)(3,884) NM (6,968)(4,555)(2,413) (53) (1)

Other expense,(82) (56) (26) (46) (418) (168) (250) (149) net

Provision for (1,318)(1,772)454 26 (3,685)(3,547)(138) (4) income taxes

Net income 3,073 4,746 (1,673) (35) 9,472 8,666 806 9

Less: net (loss) income attributable (416) 656 1,072 163 181 581 400 69 to noncontrolling interests

Net income attributable 3,489 4,090 (601) (15) 9,291 8,085 1,206 15 to MIC

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

Net income 3,073 4,746 9,472 8,666

Interest expense, net^ 5,664 1,780 6,968 4,555 (1)

Provision for 1,318 1,772 3,685 3,547 income taxes

Depreciation and 3,840 3,778 7,588 7,402 amortization

Other non-cash income, net^ (2,836)(4,841) (3,092)(1,728) (2)

EBITDA excluding 11,059 7,235 3,824 53 24,621 22,442 2,179 10 non-cash items



EBITDA excluding 11,059 7,235 24,621 22,442 non-cash items

Interest expense, net^ (5,664)(1,780) (6,968)(4,555) (1)

Non-cash interest 274 188 43 1,191 expense, net^ (1)

Provision for current income(669) (791) (2,185)(2,914) taxes

Changes in working (5,760)8,692 (7,456)3,606 capital

Cash (used in) provided by (760) 13,544 8,055 19,770 operating activities

Changes in working 5,760 (8,692) 7,456 (3,606) capital

Maintenance capital (1,646)(1,377) (2,760)(4,046) expenditures

Free cash flow3,354 3,475 (121) (3) 12,751 12,118 633 5

____________________

NM - Not meaningful.



Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash (1)write-offs of debt financing costs related to the full repayment of the Hawaii Gas $100.0 million senior secured notes. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, Hawaii Gas paid a $4.7 million 'make-whole' payment.



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 incentive plans, and non-cash gains (losses) related to the write-off or disposal of assets or(2)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.

Corporate and Other



Quarter Ended Six Months Ended Change Change June 30, June 30, Favorable/(Unfavorable)Favorable/(Unfavorable) 2021 2020 2021 2020

$ $ $ % $ $ $ %

($ In Thousands) (Unaudited)

Selling, general and 11,381 7,751 (3,630) (47) 21,130 24,872 3,742 15 administrative expenses

Fees to Manager - 7,551 3,824 (3,727) (97) 13,103 11,180 (1,923) (17) related party

Depreciation and 487 375 (112) (30) 958 703 (255) (36) amortization

Operating loss(19,419) (11,950)(7,469) (63) (35,191) (36,755)1,564 4

Interest expense, net^ (304) (7,541) 7,237 96 (6,728) (12,127)5,399 45 (1)

Other income, 873 235 638 NM 1,729 273 1,456 NM net

(Provision) benefit for (1,915) 6,629 (8,544) (129) 3,682 10,886 (7,204) (66) income taxes

Net loss (20,765) (12,627)(8,138) (64) (36,508) (37,723)1,215 3

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 (20,765) (12,627) (36,508) (37,723)

Interest expense, net^ 304 7,541 6,728 12,127 (1)

Provision (benefit) for 1,915 (6,629) (3,682) (10,886) income taxes

Fees to Manager - 7,551 3,824 13,103 11,180 related party

Depreciation and 487 375 958 703 amortization

Other non-cash expense, net^ 408 265 1,053 670 (2)

EBITDA excluding (10,100) (7,251) (2,849) (39) (18,348) (23,929)5,581 23 non-cash items



EBITDA excluding (10,100) (7,251) (18,348) (23,929) non-cash items

Interest expense, net^ (304) (7,541) (6,728) (12,127) (1)

Non-cash interest 133 1,512 4,824 3,017 expense, net^ (1)

Benefit (provision) 2,429 (2,068) 5,216 3,812 for current income taxes

Changes in working (131,901)(2,215) (148,514)(2,330) capital

Cash used in operating (139,743)(17,563) (163,550)(31,557) activities

Changes in working 131,901 2,215 148,514 2,330 capital

Free cash flow(7,842) (15,348)7,506 49 (15,036) (29,227)14,191 49

____________________

NM - Not meaningful.



Interest expense, net, includes, 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 six months ended June 30, (1)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 cancellation of the holding company revolving credit facility in January 2021.



Other non-cash expense, net, includes primarily non-cash adjustments related to non-cash compensation expense incurred in relation to (2)incentive plans and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow" above for further discussion.

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 FREE CASH FLOW





For the Quarter Ended June 30, 2021

Total Atlantic MIC Corporate Discontinued Continuing Total Aviation Hawaii and Other Operations Operations

($ in Thousands) (Unaudited)

Net income 24,625 3,073 (20,765) 6,933 - 6,933 (loss)

Interest expense, net10,764 5,664 304 16,732 - 16,732 ^(1)

Provision for income 9,015 1,318 1,915 12,248 - 12,248 taxes

Depreciation and 23,589 3,840 487 27,916 - 27,916 amortization

Fees to Manager - - - 7,551 7,551 - 7,551 related party

Other non-cash expense 2,326 (2,836)408 (102) - (102) (income), net^(2)

EBITDA excluding 70,319 11,059 (10,100) 71,278 - 71,278 non-cash items

EBITDA excluding 70,319 11,059 (10,100) 71,278 - 71,278 non-cash items

Interest expense, net(10,764)(5,664)(304) (16,732) - (16,732) ^(1)

Non-cash interest 938 274 133 1,345 - 1,345 expense, net ^(1)

(Provision) benefit for (6,490) (669) 2,429 (4,730) - (4,730) current income taxes

Changes in working 6,961 (5,760)(131,901)(130,700)- (130,700)capital

Cash provided by (used in) 60,964 (760) (139,743)(79,539) - (79,539) operating activities

Changes in working (6,961) 5,760 131,901 130,700 - 130,700 capital

Maintenance capital (4,494) (1,646)- (6,140) - (6,140) expenditures

Free Cash 49,509 3,354 (7,842) 45,021 - 45,021 Flow





For the Quarter Ended June 30, 2020

Total Atlantic MIC Corporate Discontinued Continuing Total Aviation Hawaii and Other Operations Operations

($ in Thousands) (Unaudited)

Net (loss) (16,548)4,746 (12,627) (24,429) 17,131 (7,298) income

Interest expense, net14,129 1,780 7,541 23,450 9,941 33,391 ^(1)

(Benefit) provision (6,401) 1,772 (6,629) (11,258) 5,240 (6,018) for income taxes

Depreciation and 24,865 3,778 375 29,018 33,750 62,768 amortization

Fees to Manager - - - 3,824 3,824 - 3,824 related party

Other non-cash expense 849 (4,841)265 (3,727) 1,627 (2,100) (income), net^(2)

EBITDA excluding 16,894 7,235 (7,251) 16,878 67,689 84,567 non-cash items

EBITDA excluding 16,894 7,235 (7,251) 16,878 67,689 84,567 non-cash items

Interest expense, net(14,129)(1,780)(7,541) (23,450) (9,941) (33,391) ^(1)

Non-cash interest 2,486 188 1,512 4,186 (118) 4,068 expense, net ^(1)

Benefit (provision) 8,497 (791) (2,068) 5,638 (847) 4,791 for current income taxes

Changes in working 8,050 8,692 (2,215) 14,527 (2,195) 12,332 capital

Cash provided by (used in) 21,798 13,544 (17,563) 17,779 54,588 72,367 operating activities

Changes in working (8,050) (8,692)2,215 (14,527) 2,195 (12,332) capital

Maintenance capital (2,361) (1,377)- (3,738) (12,872) (16,610) expenditures

Free Cash 11,387 3,475 (15,348) (486) 43,911 43,425 Flow



For the Six Months Ended June 30, 2021

Total Atlantic MIC Corporate Discontinued Continuing Total Aviation Hawaii and Other Operations Operations

($ in Thousands) (Unaudited)

Net income 47,766 9,472 (36,508) 20,730 - 20,730 (loss)

Interest expense, net21,494 6,968 6,728 35,190 - 35,190 ^(1)

Provision (benefit) 17,611 3,685 (3,682) 17,614 - 17,614 for income taxes

Depreciation and 46,889 7,588 958 55,435 - 55,435 amortization

Fees to Manager - - - 13,103 13,103 - 13,103 related party

Other non-cash expense 3,895 (3,092)1,053 1,856 - 1,856 (income), net^(2)

EBITDA excluding 137,655 24,621 (18,348) 143,928 - 143,928 non-cash items

EBITDA excluding 137,655 24,621 (18,348) 143,928 - 143,928 non-cash items

Interest expense, net(21,494)(6,968)(6,728) (35,190) - (35,190) ^(1)

Non-cash interest 1,881 43 4,824 6,748 - 6,748 expense, net ^(1)

(Provision) benefit for (10,970)(2,185)5,216 (7,939) - (7,939) current income taxes

Changes in working 8,877 (7,456)(148,514)(147,093)- (147,093)capital

Cash provided by (used in) 115,949 8,055 (163,550)(39,546) - (39,546) operating activities

Changes in working (8,877) 7,456 148,514 147,093 - 147,093 capital

Maintenance capital (7,044) (2,760)- (9,804) - (9,804) expenditures

Free Cash 100,028 12,751 (15,036) 97,743 - 97,743 Flow





For the Six Months Ended June 30, 2020

Total Atlantic MIC Corporate Discontinued Continuing Total Aviation Hawaii and Other Operations Operations

($ in Thousands) (Unaudited)

Net (loss) (2,360) 8,666 (37,723) (31,417) 35,346 3,929 income

Interest expense, net33,005 4,555 12,127 49,687 25,240 74,927 ^(1)

(Benefit) provision (922) 3,547 (10,886) (8,261) 11,570 3,309 for income taxes

Depreciation and 51,444 7,402 703 59,549 68,230 127,779 amortization

Fees to Manager - - - 11,180 11,180 - 11,180 related party

Other non-cash expense 1,662 (1,728)670 604 4,950 5,554 (income), net^(2)

EBITDA excluding 82,829 22,442 (23,929) 81,342 145,336 226,678 non-cash items

EBITDA excluding 82,829 22,442 (23,929) 81,342 145,336 226,678 non-cash items

Interest expense, net(33,005)(4,555)(12,127) (49,687) (25,240) (74,927) ^(1)

Non-cash interest 7,645 1,191 3,017 11,853 5,412 17,265 expense, net ^(1)

(Provision) benefit for (80) (2,914)3,812 818 (2,954) (2,136) current income taxes

Changes in working 23,717 3,606 (2,330) 24,993 (19,278) 5,715 capital

Cash provided by (used in) 81,106 19,770 (31,557) 69,319 103,276 172,595 operating activities

Changes in working (23,717)(3,606)2,330 (24,993) 19,278 (5,715) capital

Maintenance capital (5,406) (4,046)- (9,452) (18,487) (27,939) expenditures

Free Cash 51,983 12,118 (29,227) 34,874 104,067 138,941 Flow

____________________________

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 six months ended June 30, 2021, interest (1)expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes, the cancellation of the holding company revolving credit facility in January 2021, and the full repayment of the Hawaii Gas $100.0 million senior secured notes. 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.



Other non-cash expense (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. (2)Other non-cash expense (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.

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SOURCE Macquarie Infrastructure Corporation