PR Newswire | Nov 2, 2021 07:01AM EDT

11/02 06:00 CDT

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

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

Change Change Quarter Ended Nine Months Ended September 30, Favorable/ September 30, Favorable/ (Unfavorable) (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 (3.12) (0.06) (3.06) NM (3.38) (0.29) (3.09) NM attributable to MIH

Cash (used in) provided by (271,548) 1,462 (273,010)NM (292,199) (1,324) (290,875)NM operating activities

Discontinued Operations

Net income $2,954,444$(887,880)3,842,324NM $2,996,984$(864,249)3,861,233NM (loss)

Net income (loss) per unit 33.61 (10.20) 43.81 NM 34.19 (9.95) 44.14 NM attributable to MIH

Cash provided by operating 47,860 108,125 (60,265) (56)28,965 283,506 (254,541)(90)activities

Weighted average number of units 87,891,018 87,030,751 860,267 1 87,645,390 86,864,951 780,439 1 outstanding: basic

MIH Non-GAAP Metrics

EBITDA excluding non-cash items -$(271,181)$2,052 (273,233)NM $(260,248)$8,258 (268,506)NM continuing operations

Investment and acquisition/ 280,161 3,335 276,826 NM 291,036 16,161 274,875 NM disposition costs

Adjusted EBITDA excluding non - cash 8,980 5,387 3,593 67 30,788 24,419 6,369 26 items-continuing operations

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 (2,007) (1,389) (618) (44)(4,767) (5,435) 668 12 expenditures

Adjusted Free Cash Flow - $7,937 $2,217 5,720 NM $22,478 $16,022 6,456 40 continuing operations

NM - Notmeaningful.

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 MeasuresEarnings 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,December 31, 2020 2021

(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 25,279 23,113 doubtful accounts

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 296,637 297,375 improvements, net

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 192,207 178,062 on September 30, 2021 and 87,361,929 units issued and outstanding on December 31, 2020)

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

See Note 4, "Discontinued Operations and Dispositions", in our Notes to(1) 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.

The Company is authorized to issue 100,000,000 preferred units. On(2) 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 (Unaudited) ($ in Thousands, Except Unit and Per Unit Data)



Quarter Ended Nine Months Ended September 30, 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 61,704 11,135 88,429 40,561 administrative

Disposition payment to228,551 - 228,570 - Manager

Total Selling, general290,255 11,135 316,999 40,561 and administrative

Fees to Manager - 7,698 4,980 20,801 16,160 related party

Depreciation 3,757 3,717 11,133 10,906

Amortization of 107 105 319 318 intangibles

Total operating 342,430 44,996 462,455 153,163 expenses

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 180 (769) (238) (937) (expense), net

Net loss from continuing operations (283,106) (11,676) (303,249) (34,000) before income taxes

Benefit for income 8,455 6,186 6,788 8,808 taxes

Net loss from (274,651) (5,490) (296,461) (25,192) continuing operations



Discontinued Operations^(2)

Net income (loss) from discontinued 3,004,955 (718,061) 3,063,442 (688,499) operations before income taxes

Provision for income (50,511) (169,819) (66,458) (175,750) taxes

Net income (loss) from discontinued 2,954,444 (887,880) 2,996,984 (864,249) operations

Net income (loss) 2,679,793 (893,370) 2,700,523 (889,441)



Net loss from (274,651) (5,490) (296,461) (25,192) continuing operations

Less: net (loss) income attributable to(14) (122) 167 459 noncontrolling interest

Net loss from continuing operations (274,637) (5,368) (296,628) (25,651) attributable to MIH

Net income (loss) from discontinued 2,954,444 (887,880) 2,996,984 (864,249) operations

Net income (loss) from discontinued 2,954,444 (887,880) 2,996,984 (864,249)operations attributable to MIH

Net income (loss) $2,679,807$(893,248)$2,700,356$(889,900)attributable to MIH



Basic loss per units from continuing $(3.12) $(0.06) $(3.38) $(0.29) operations attributable to MIH

Basic income (loss) per units from discontinued 33.61 (10.20) 34.19 (9.95) operations attributable to MIH

Basic income (loss) per units attributable$30.49 $(10.26) $30.81 $(10.24) to MIH

Weighted average number of units 87,891,018 87,030,751 87,645,390 86,864,951 outstanding: basic



Diluted loss per unit from continuing $(3.12) $(0.06) $(3.38) $(0.29) operations attributable to MIH

Diluted income (loss) per unit from discontinued 33.61 (10.20) 34.19 (9.95) operations attributable to MIH

Diluted income (loss) per unit attributable $30.49 $(10.26) $30.81 $(10.24) to MIH

Weighted average number of units 87,891,018 87,030,751 87,645,390 86,864,951 outstanding: diluted

Cash distributions $37.386817$- $37.386817$- declared per unit

Interest expense includes non-cash gains on derivative instruments of(1) $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.

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 September 30, 2021, for discussions on businesses classified as held for sale.

MACQUARIE INFRASTRUCTURE HOLDINGS, LLC



CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) ($ 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 664 1,414 costs

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 (292,199) (1,324) continuing operations

Investing activities

Purchases of property and equipment (10,314) (10,790)

Other, net 72 36

Net cash used in investing activities from (10,242) (10,754) continuing operations

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 (1,430,529) (1,006) continuing operations

Net change in cash, cash equivalents, and (1,732,970) (13,084) restricted cash from continuing operations

MACQUARIE INFRASTRUCTURE HOLDINGS, LLC



CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - (continued) (Unaudited) ($ 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 3,242,836 (192,913) activities

Net cash (used in) provided by financing (5,123) 55,120 activities

Net cash provided by discontinued operations 3,266,678 145,713

Effect of exchange rate changes on cash and - (255) cash equivalents

Net change in cash, cash equivalents, and 1,533,708 132,374 restricted cash

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

Cash, cash equivalents, and restricted cash, $3,372,928 $490,939 end of period

Supplemental disclosures of cash flow information:

Non-cash investing and financing activities:

Accrued purchases of property and equipment $680 $443 from continuing operations

Accrued purchases of property and equipment 4,201 14,848 from discontinued operations

Leased assets obtained in exchange for new operating lease liabilities from 14,666 9,419 discontinued operations

Cash distribution declared, but not yet paid 3,297,420 -

Taxes received, net, from continuing (625) - operations

Taxes paid, net, from discontinued operations143,906 4,970

Interest paid, net, from continuing 12,901 10,165 operations

Interest paid, net, from discontinued 29,616 68,544 operations

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 - 456,898 in assets held for sale

Total of cash, cash equivalents, and restricted cash shown in the consolidated condensed statements of $3,372,928$490,939cash flows

MACQUARIE INFRASTRUCTURE HOLDINGS, LLC



CONSOLIDATED STATEMENTS OF OPERATIONS - MD&A



Change Change Quarter Ended Nine Months Ended September 30, Favorable/ September 30, Favorable/ (Unfavorable) (Unfavorable)

2021 2020 $ % 2021 2020 $ %

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

Revenue

Product $60,086 $39,036 21,050 54 $173,413 $136,293 37,120 27 revenue

Total revenue 60,086 39,036 21,050 54 173,413 136,293 37,120 27

Costs and expenses

Cost of 40,613 25,059 (15,554) (62)113,203 85,218 (27,985) (33) product sales

Selling, general and 61,704 11,135 (50,569) NM 88,429 40,561 (47,868) (118)administrative

Disposition payment to 228,551 - (228,551)NM 228,570 - (228,570)NM Manager

Total Selling, general and 290,255 11,135 (279,120)NM 316,999 40,561 (276,438)NM administrative

Fees to Manager - 7,698 4,980 (2,718) (55)20,801 16,160 (4,641) (29) related party

Depreciation and 3,864 3,822 (42) (1) 11,452 11,224 (228) (2) amortization

Total operating 342,430 44,996 (297,434)NM 462,455 153,163 (309,292)NM expenses

Operating loss(282,344) (5,960) (276,384)NM (289,042) (16,870) (272,172)NM

Other income (expense)

Interest 6 (42) 48 114 22 22 - - income

Interest (948) (4,905) 3,957 81 (13,991) (16,215) 2,224 14 expense^(1)

Other income 180 (769) 949 123 (238) (937) 699 75 (expense), net

Net loss from continuing operations (283,106) (11,676) (271,430)NM (303,249) (34,000) (269,249)NM before income taxes

Benefit for 8,455 6,186 2,269 37 6,788 8,808 (2,020) (23) income taxes

Net loss from continuing (274,651) (5,490) (269,161)NM (296,461) (25,192) (271,269)NM operations



Discontinued Operations

Net income (loss) from discontinued 3,004,955 (718,061) 3,723,016NM 3,063,442 (688,499) 3,751,941NM operations before income taxes

Provision for (50,511) (169,819) 119,308 70 (66,458) (175,750) 109,292 62 income taxes

Net income (loss) from 2,954,444 (887,880) 3,842,324NM 2,996,984 (864,249) 3,861,233NM discontinued operations

Net income 2,679,793 (893,370) 3,573,163NM 2,700,523 (889,441) 3,589,964NM (loss)



Net loss from continuing (274,651) (5,490) (269,161)NM (296,461) (25,192) (271,269)NM operations

Less: net (loss) income attributable (14) (122) (108) (89)167 459 292 64 to noncontrolling interests

Net loss from continuing operations (274,637) (5,368) (269,269)NM (296,628) (25,651) (270,977)NM attributable to MIH

Net income (loss) from 2,954,444 (887,880) 3,842,324NM 2,996,984 (864,249) 3,861,233NM discontinued operations

Net income (loss) from discontinued 2,954,444 (887,880) 3,842,324NM 2,996,984 (864,249) 3,861,233NM operations attributable to MIH

Net income (loss) $2,679,807$(893,248)3,573,055NM $2,700,356$(889,900)3,590,256NM attributable to MIH



Basic loss per unit from continuing $(3.12) $(0.06) (3.06) NM $(3.38) $(0.29) (3.09) NM operations attributable to MIH

Basic income (loss) per unit from discontinued 33.61 (10.20) 43.81 NM 34.19 (9.95) 44.14 NM operations attributable to MIH

Basic income (loss) per unit $30.49 $(10.26) 40.75 NM $30.81 $(10.24) 41.05 NM attributable to MIH

Weighted average number of units 87,891,018 87,030,751 860,267 1 87,645,390 86,864,951 780,439 1 outstanding: basic

NM - Not meaningful.

Interest expense includes non-cash gains on derivative instruments of(1) $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 Change Nine Months Ended Change September 30, Favorable/ September 30, Favorable/ (Unfavorable) (Unfavorable)

2021 2020 $ % 2021 2020 $ %

($ In Thousands) (Unaudited)

Net loss from $(274,651)$(5,490) $(296,461)$(25,192) continuing operations

Interest expense, net942 4,947 13,969 16,193 ^(1)

Benefit for (8,455) (6,186) (6,788) (8,808) income taxes

Depreciation and 3,864 3,822 11,452 11,224 amortization

Fees to Manager - 7,698 4,980 20,801 16,160 related party

Other non-cash (579) (21) (3,221) (1,319) income, net^ (2)

EBITDA excluding non-cash $(271,181)$2,052 (273,233)NM$(260,248)$8,258 (268,506)NMitems - continuing operations



EBITDA excluding non-cash $(271,181)$2,052 $(260,248)$8,258 items - continuing operations

Interest expense, net(942) (4,947) (13,969) (16,193) ^(1)

Non-cash interest 326 1,401 4,491 5,258 expense, net ^(1)

Benefit for current 1,580 1,765 5,935 7,973 income taxes

Changes in working (1,331) 1,191 (28,408) (6,620) capital

Cash (used in) provided by operating(271,548) 1,462 (292,199) (1,324) activities - continuing operations

Changes in working 1,331 (1,191) 28,408 6,620 capital

Maintenance capital (2,007) (1,389) (4,767) (5,435) expenditures

Free cash flow - $(272,224)$(1,118)(271,106)NM$(268,558)$(139) (268,419)NMcontinuing 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 nine months ended September 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 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.

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)(2) 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.

View original content: https://www.prnewswire.com/news-releases/mic-reports-third-quarter-2021-financial-and-operational-results-301413676.html

SOURCE Macquarie Infrastructure Holdings, LLC