|
(Mark One)
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
43-2052503
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(IRS Employer
Identification No.)
|
Title of Each Class
|
|
Trading Symbol
|
|
Name of Each Exchange on Which Registered
|
Common Stock, par value $0.001 per share
|
|
MIC
|
|
New York Stock Exchange
|
Large Accelerated Filer
|
☒
|
Accelerated Filer
|
☐
|
|
|
Non-accelerated Filer
|
☐
|
Smaller Reporting Company
|
☐
|
Emerging Growth Company
|
☐
|
|
|
|
Page
|
•
|
International-Matex Tank Terminals (IMTT): a business providing bulk liquid storage and handling services to third-parties at 17 terminals in the U.S. and two in Canada;
|
•
|
Atlantic Aviation: a provider of jet fuel, terminal, aircraft hangaring and other services primarily to operators of general aviation (GA) jet aircraft at 70 airports throughout the U.S.;
|
•
|
MIC Hawaii: comprising a company that processes and distributes gas and provides related services (Hawaii Gas) and several smaller businesses collectively engaged in efforts to reduce the cost and improve the reliability and sustainability of energy in Hawaii; and
|
•
|
Corporate and Other: comprising MIC Corporate (holding company headquarters in New York City) and a shared services center in Plano, Texas.
|
Declared
|
|
Period Covered
|
|
$ per Share
|
|
Record Date
|
|
Payable Date
|
|
February 14, 2020
|
|
Fourth quarter 2019
|
|
$1.00
|
|
March 6, 2020
|
|
March 11, 2020
|
|
October 29, 2019
|
|
Third quarter 2019
|
|
1.00
|
|
|
November 11, 2019
|
|
November 14, 2019
|
July 30, 2019
|
|
Second quarter 2019
|
|
1.00
|
|
|
August 12, 2019
|
|
August 15, 2019
|
April 29, 2019
|
|
First quarter 2019
|
|
1.00
|
|
|
May 13, 2019
|
|
May 16, 2019
|
February 14, 2019
|
|
Fourth quarter 2018
|
|
1.00
|
|
|
March 4, 2019
|
|
March 7, 2019
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||
|
($ In Millions, Except Share and Per Share Data) (Unaudited)
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
||||||
Service revenue
|
$
|
356
|
|
|
$
|
418
|
|
|
(62
|
)
|
|
(15
|
)
|
Product revenue
|
60
|
|
|
64
|
|
|
(4
|
)
|
|
(6
|
)
|
||
Total revenue
|
416
|
|
|
482
|
|
|
(66
|
)
|
|
(14
|
)
|
||
Costs and expenses
|
|
|
|
|
|
|
|
||||||
Cost of services
|
145
|
|
|
168
|
|
|
23
|
|
|
14
|
|
||
Cost of product sales
|
42
|
|
|
40
|
|
|
(2
|
)
|
|
(5
|
)
|
||
Selling, general and administrative
|
96
|
|
|
80
|
|
|
(16
|
)
|
|
(20
|
)
|
||
Fees to Manager-related party
|
7
|
|
|
8
|
|
|
1
|
|
|
13
|
|
||
Depreciation
|
51
|
|
|
48
|
|
|
(3
|
)
|
|
(6
|
)
|
||
Amortization of intangibles
|
14
|
|
|
15
|
|
|
1
|
|
|
7
|
|
||
Total operating expenses
|
355
|
|
|
359
|
|
|
4
|
|
|
1
|
|
||
Operating income
|
61
|
|
|
123
|
|
|
(62
|
)
|
|
(50
|
)
|
||
Other income (expense)
|
|
|
|
|
|
|
|
||||||
Interest income
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
(100
|
)
|
||
Interest expense(1)
|
(42
|
)
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
||
Other income, net
|
1
|
|
|
4
|
|
|
(3
|
)
|
|
(75
|
)
|
||
Net income from continuing operations before income taxes
|
20
|
|
|
88
|
|
|
(68
|
)
|
|
(77
|
)
|
||
Provision for income taxes
|
(9
|
)
|
|
(24
|
)
|
|
15
|
|
|
63
|
|
||
Net income from continuing operations
|
11
|
|
|
64
|
|
|
(53
|
)
|
|
(83
|
)
|
||
Discontinued Operations
|
|
|
|
|
|
|
|
||||||
Net income from discontinued operations before income taxes
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
(100
|
)
|
||
Benefit for income taxes
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
(100
|
)
|
||
Net income from discontinued operations
|
—
|
|
|
5
|
|
|
(5
|
)
|
|
(100
|
)
|
||
Net income
|
11
|
|
|
69
|
|
|
(58
|
)
|
|
(84
|
)
|
||
|
|
|
|
|
|
|
|
||||||
Net income from continuing operations
|
11
|
|
|
64
|
|
|
(53
|
)
|
|
(83
|
)
|
||
Net income from continuing operations attributable to MIC
|
11
|
|
|
64
|
|
|
(53
|
)
|
|
(83
|
)
|
||
Net income from discontinued operations
|
—
|
|
|
5
|
|
|
(5
|
)
|
|
(100
|
)
|
||
Less: net loss attributable to noncontrolling interests
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(100
|
)
|
||
Net income from discontinued operations attributable to MIC
|
—
|
|
|
6
|
|
|
(6
|
)
|
|
(100
|
)
|
||
Net income attributable to MIC
|
$
|
11
|
|
|
$
|
70
|
|
|
(59
|
)
|
|
(84
|
)
|
Basic income per share from continuing operations attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.75
|
|
|
(0.62
|
)
|
|
(83
|
)
|
Basic income per share from discontinued operations attributable to MIC
|
—
|
|
|
0.07
|
|
|
(0.07
|
)
|
|
(100
|
)
|
||
Basic income per share attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.82
|
|
|
(0.69
|
)
|
|
(84
|
)
|
Weighted average number of shares outstanding: basic
|
86,686,972
|
|
|
85,872,132
|
|
|
814,840
|
|
|
1
|
|
(1)
|
Interest expense includes non-cash losses on derivative instruments of $9 million and $4 million for the quarters ended March 31, 2020 and 2019, respectively.
|
Period
|
|
Base Management
Fee Amount
($ in millions)
|
|
Performance
Fee Amount
($ in millions)
|
|
Shares
Issued
|
||||||
2020 Activities:
|
|
|
|
|
|
|
|
|||||
First quarter 2020
|
|
$
|
7
|
|
|
$
|
—
|
|
|
181,617
|
|
(1)
|
|
|
|
|
|
|
|
|
|||||
2019 Activities:
|
|
|
|
|
|
|
|
|||||
Fourth quarter 2019
|
|
$
|
9
|
|
|
$
|
—
|
|
|
208,881
|
|
|
Third quarter 2019
|
|
8
|
|
|
—
|
|
|
201,827
|
|
|
||
Second quarter 2019
|
|
7
|
|
|
—
|
|
|
192,103
|
|
|
||
First quarter 2019
|
|
8
|
|
|
—
|
|
|
184,448
|
|
|
(1)
|
Our Manager elected to reinvest all of the monthly base management fees for the first quarter of 2020 in new primary shares. We issued 181,617 shares for the quarter ended March 31, 2020, including 39,206 shares that were issued in April 2020 for the March 2020 monthly base management fee.
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
||||||
|
($ In Millions) (Unaudited)
|
||||||||||||
Net income from continuing operations
|
$
|
11
|
|
|
$
|
64
|
|
|
|
|
|
||
Interest expense, net(1)
|
42
|
|
|
39
|
|
|
|
|
|
||||
Provision for income taxes
|
9
|
|
|
24
|
|
|
|
|
|
||||
Depreciation
|
51
|
|
|
48
|
|
|
|
|
|
||||
Amortization of intangibles
|
14
|
|
|
15
|
|
|
|
|
|
||||
Fees to Manager-related party
|
7
|
|
|
8
|
|
|
|
|
|
||||
Other non-cash expense, net(2)
|
7
|
|
|
4
|
|
|
|
|
|
||||
EBITDA excluding non-cash items - continuing operations
|
$
|
141
|
|
|
$
|
202
|
|
|
(61
|
)
|
|
(30
|
)
|
|
|
|
|
|
|
|
|
||||||
EBITDA excluding non-cash items - continuing operations
|
$
|
141
|
|
|
$
|
202
|
|
|
|
|
|
||
Interest expense, net(1)
|
(42
|
)
|
|
(39
|
)
|
|
|
|
|
||||
Non-cash interest expense, net(1)
|
13
|
|
|
11
|
|
|
|
|
|
||||
Provision for current income taxes
|
(7
|
)
|
|
(7
|
)
|
|
|
|
|
||||
Changes in working capital
|
(6
|
)
|
|
(16
|
)
|
|
|
|
|
||||
Cash provided by operating activities - continuing operations
|
99
|
|
|
151
|
|
|
|
|
|
||||
Changes in working capital
|
6
|
|
|
16
|
|
|
|
|
|
||||
Maintenance capital expenditures
|
(12
|
)
|
|
(10
|
)
|
|
|
|
|
||||
Free cash flow - continuing operations
|
93
|
|
|
157
|
|
|
(64
|
)
|
|
(41
|
)
|
||
Free cash flow - discontinued operations
|
—
|
|
|
7
|
|
|
(7
|
)
|
|
(100
|
)
|
||
Total Free Cash Flow
|
$
|
93
|
|
|
$
|
164
|
|
|
(71
|
)
|
|
(43
|
)
|
(2)
|
Other non-cash expense, net, includes primarily pension expense of $2 million for the quarters ended March 31, 2020 and 2019, unrealized gains (losses) on 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 disposal of assets. Pension expense consists primarily of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||
|
2020
|
|
2019
|
|
|||||||
|
$
|
|
$
|
|
$
|
|
%
|
||||
|
($ In Millions) (Unaudited)
|
||||||||||
Revenue
|
132
|
|
|
161
|
|
|
(29
|
)
|
|
(18
|
)
|
Cost of services
|
50
|
|
|
50
|
|
|
—
|
|
|
—
|
|
Selling, general and administrative expenses
|
9
|
|
|
8
|
|
|
(1
|
)
|
|
(13
|
)
|
Depreciation and amortization
|
34
|
|
|
33
|
|
|
(1
|
)
|
|
(3
|
)
|
Operating income
|
39
|
|
|
70
|
|
|
(31
|
)
|
|
(44
|
)
|
Interest expense, net(1)
|
(15
|
)
|
|
(13
|
)
|
|
(2
|
)
|
|
(15
|
)
|
Other income, net
|
1
|
|
|
—
|
|
|
1
|
|
|
NM
|
|
Provision for income taxes
|
(7
|
)
|
|
(16
|
)
|
|
9
|
|
|
56
|
|
Net income
|
18
|
|
|
41
|
|
|
(23
|
)
|
|
(56
|
)
|
Reconciliation of net income to EBITDA excluding non-cash items and a reconciliation of cash provided by operating activities to Free Cash Flow:
|
|
|
|
|
|
|
|
||||
Net income
|
18
|
|
|
41
|
|
|
|
|
|
||
Interest expense, net(1)
|
15
|
|
|
13
|
|
|
|
|
|
||
Provision for income taxes
|
7
|
|
|
16
|
|
|
|
|
|
||
Depreciation and amortization
|
34
|
|
|
33
|
|
|
|
|
|
||
Other non-cash expense, net(2)
|
3
|
|
|
1
|
|
|
|
|
|
||
EBITDA excluding non-cash items
|
77
|
|
|
104
|
|
|
(27
|
)
|
|
(26
|
)
|
EBITDA excluding non-cash items
|
77
|
|
|
104
|
|
|
|
|
|
||
Interest expense, net(1)
|
(15
|
)
|
|
(13
|
)
|
|
|
|
|
||
Non-cash interest expense, net(1)
|
5
|
|
|
3
|
|
|
|
|
|
||
Provision for current income taxes
|
(2
|
)
|
|
(11
|
)
|
|
|
|
|
||
Changes in working capital
|
(17
|
)
|
|
8
|
|
|
|
|
|
||
Cash provided by operating activities
|
48
|
|
|
91
|
|
|
|
|
|
||
Changes in working capital
|
17
|
|
|
(8
|
)
|
|
|
|
|
||
Maintenance capital expenditures
|
(6
|
)
|
|
(6
|
)
|
|
|
|
|
||
Free cash flow
|
59
|
|
|
77
|
|
|
(18
|
)
|
|
(23
|
)
|
(1)
|
Interest expense, net, includes non-cash adjustments to derivative instruments and non-cash amortization of deferred financing fee.
|
(2)
|
Other non-cash expense, net, includes primarily pension expense of $2 million for the quarters ended March 31, 2020 and 2019 and non-cash compensation expense incurred in relation to incentive plans. Pension expense consists primarily of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||
|
2020
|
|
2019
|
|
|||||||
|
$
|
|
$
|
|
$
|
|
%
|
||||
|
($ In Millions) (Unaudited)
|
||||||||||
Revenue
|
224
|
|
|
258
|
|
|
(34
|
)
|
|
(13
|
)
|
Cost of services (exclusive of depreciation and amortization shown separately below)
|
95
|
|
118
|
|
|
23
|
|
|
19
|
|
|
Gross margin
|
129
|
|
140
|
|
|
(11
|
)
|
|
(8
|
)
|
|
Selling, general and administrative expenses
|
64
|
|
|
61
|
|
|
(3
|
)
|
|
(5
|
)
|
Depreciation and amortization
|
27
|
|
|
26
|
|
|
(1
|
)
|
|
(4
|
)
|
Operating income
|
38
|
|
|
53
|
|
|
(15
|
)
|
|
(28
|
)
|
Interest expense, net(1)
|
(19
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
Provision for income taxes
|
(5
|
)
|
|
(9
|
)
|
|
4
|
|
|
44
|
|
Net income
|
14
|
|
|
25
|
|
|
(11
|
)
|
|
(44
|
)
|
Reconciliation of net income to EBITDA
excluding non-cash items and a reconciliation of cash provided by operating activities to Free Cash Flow: |
|
|
|
|
|
|
|
||||
Net income
|
14
|
|
|
25
|
|
|
|
|
|
||
Interest expense, net(1)
|
19
|
|
|
19
|
|
|
|
|
|
||
Provision for income taxes
|
5
|
|
|
9
|
|
|
|
|
|
||
Depreciation and amortization
|
27
|
|
|
26
|
|
|
|
|
|
||
Other non-cash expense, net(2)
|
1
|
|
|
—
|
|
|
|
|
|
||
EBITDA excluding non-cash items
|
66
|
|
|
79
|
|
|
(13
|
)
|
|
(16
|
)
|
EBITDA excluding non-cash items
|
66
|
|
|
79
|
|
|
|
|
|
||
Interest expense, net(1)
|
(19
|
)
|
|
(19
|
)
|
|
|
|
|
||
Non-cash interest expense, net(1)
|
5
|
|
|
5
|
|
|
|
|
|
||
Provision for current income taxes
|
(9
|
)
|
|
(7
|
)
|
|
|
|
|
||
Changes in working capital
|
16
|
|
|
(4
|
)
|
|
|
|
|
||
Cash provided by operating activities
|
59
|
|
|
54
|
|
|
|
|
|
||
Changes in working capital
|
(16
|
)
|
|
4
|
|
|
|
|
|
||
Maintenance capital expenditures
|
(3
|
)
|
|
(2
|
)
|
|
|
|
|
||
Free cash flow
|
40
|
|
|
56
|
|
|
(16
|
)
|
|
(29
|
)
|
(1)
|
Interest expense, net, includes non-cash adjustments to derivative instruments and non-cash amortization of deferred financing fees.
|
(2)
|
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 disposal of assets. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||
|
2020
|
|
2019
|
|
|||||||
|
$
|
|
$
|
|
$
|
|
%
|
||||
|
($ In Millions) (Unaudited)
|
||||||||||
Revenue
|
60
|
|
|
64
|
|
|
(4
|
)
|
|
(6
|
)
|
Cost of product sales (exclusive of depreciation and amortization shown separately below)
|
42
|
|
|
40
|
|
|
(2
|
)
|
|
(5
|
)
|
Gross margin
|
18
|
|
|
24
|
|
|
(6
|
)
|
|
(25
|
)
|
Selling, general and administrative expenses
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Depreciation and amortization
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
Operating income
|
8
|
|
|
14
|
|
|
(6
|
)
|
|
(43
|
)
|
Interest expense, net(1)
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
Provision for income taxes
|
(2
|
)
|
|
(3
|
)
|
|
1
|
|
|
33
|
|
Net income
|
3
|
|
|
8
|
|
|
(5
|
)
|
|
(63
|
)
|
Reconciliation of net income to EBITDA excluding non-cash items and a reconciliation of cash provided by operating activities to Free Cash Flow:
|
|
|
|
|
|
|
|
||||
Net income
|
3
|
|
|
8
|
|
|
|
|
|
||
Interest expense, net(1)
|
3
|
|
|
3
|
|
|
|
|
|
||
Provision for income taxes
|
2
|
|
|
3
|
|
|
|
|
|
||
Depreciation and amortization
|
4
|
|
|
4
|
|
|
|
|
|
||
Other non-cash expense, net(2)
|
3
|
|
|
2
|
|
|
|
|
|
||
EBITDA excluding non-cash items
|
15
|
|
|
20
|
|
|
(5
|
)
|
|
(25
|
)
|
EBITDA excluding non-cash items
|
15
|
|
|
20
|
|
|
|
|
|
||
Interest expense, net(1)
|
(3
|
)
|
|
(3
|
)
|
|
|
|
|
||
Non-cash interest expense, net(1)
|
1
|
|
|
1
|
|
|
|
|
|
||
Provision for current income taxes
|
(2
|
)
|
|
(3
|
)
|
|
|
|
|
||
Changes in working capital
|
(5
|
)
|
|
(2
|
)
|
|
|
|
|
||
Cash provided by operating activities
|
6
|
|
|
13
|
|
|
|
|
|
||
Changes in working capital
|
5
|
|
|
2
|
|
|
|
|
|
||
Maintenance capital expenditures
|
(3
|
)
|
|
(2
|
)
|
|
|
|
|
||
Free cash flow
|
8
|
|
|
13
|
|
|
(5
|
)
|
|
(38
|
)
|
(1)
|
Interest expense, net, includes non-cash adjustments to derivative instruments related to interest rate swaps and non-cash amortization of deferred financing fees.
|
(2)
|
Other non-cash expense, net, includes primarily non-cash adjustments related to unrealized gains (losses) on commodity hedge contracts, pension expense and non-cash compensation expense incurred in relation to incentive plans. Pension expense consists primarily of interest cost, expected return on plan assets and amortization of actuarial and performance gains and losses. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.
|
|
Quarter Ended March 31,
|
|
Change
Favorable/(Unfavorable) |
||||||||
|
2020
|
|
2019
|
|
|||||||
|
$
|
|
$
|
|
$
|
|
%
|
||||
|
($ In Millions) (Unaudited)
|
||||||||||
Selling, general and administrative expenses
|
17
|
|
|
6
|
|
|
(11
|
)
|
|
(183
|
)
|
Fees to Manager-related party
|
7
|
|
|
8
|
|
|
1
|
|
|
13
|
|
Operating loss
|
(24
|
)
|
|
(14
|
)
|
|
(10
|
)
|
|
(71
|
)
|
Interest expense, net(1)
|
(5
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(25
|
)
|
Other income, net
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
(100
|
)
|
Benefit for income taxes
|
5
|
|
|
4
|
|
|
1
|
|
|
25
|
|
Net loss
|
(24
|
)
|
|
(10
|
)
|
|
(14
|
)
|
|
(140
|
)
|
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
|
(24
|
)
|
|
(10
|
)
|
|
|
|
|
||
Interest expense, net(1)
|
5
|
|
|
4
|
|
|
|
|
|
||
Benefit for income taxes
|
(5
|
)
|
|
(4
|
)
|
|
|
|
|
||
Fees to Manager-related party
|
7
|
|
|
8
|
|
|
|
|
|
||
Other non-cash expense, net
|
—
|
|
|
1
|
|
|
|
|
|
||
EBITDA excluding non-cash items
|
(17
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
NM
|
|
EBITDA excluding non-cash items
|
(17
|
)
|
|
(1
|
)
|
|
|
|
|
||
Interest expense, net(1)
|
(5
|
)
|
|
(4
|
)
|
|
|
|
|
||
Non-cash interest expense, net(1)
|
2
|
|
|
2
|
|
|
|
|
|
||
Benefit for current income taxes
|
6
|
|
|
14
|
|
|
|
|
|
||
Changes in working capital
|
—
|
|
|
(18
|
)
|
|
|
|
|
||
Cash used in operating activities
|
(14
|
)
|
|
(7
|
)
|
|
|
|
|
||
Changes in working capital
|
—
|
|
|
18
|
|
|
|
|
|
||
Free cash flow
|
(14
|
)
|
|
11
|
|
|
(25
|
)
|
|
NM
|
|
(1)
|
Interest expense, net, included non-cash amortization of deferred financing fees and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023.
|
Business
|
|
Debt
|
|
Weighted Average Remaining Life
(in years)
|
|
Balance Outstanding
|
|
Weighted
Average Rate(1)
|
||||
MIC Corporate
|
|
Convertible Senior Notes
|
|
3.4
|
|
|
$
|
403
|
|
|
2.00
|
%
|
|
|
Revolving Facility
|
|
1.7
|
|
|
599
|
|
|
2.55
|
%
|
|
IMTT
|
|
Senior Notes
|
|
6.0
|
|
|
600
|
|
|
3.97
|
%
|
|
|
|
Tax-Exempt Bonds
|
|
5.6
|
|
|
509
|
|
|
2.98
|
%
|
|
Atlantic Aviation
|
|
Term Loan(2)
|
|
5.6
|
|
|
1,012
|
|
|
4.33
|
%
|
|
MIC Hawaii
|
|
Term Loan(2)
|
|
3.3
|
|
|
94
|
|
|
2.04
|
%
|
|
|
|
Senior Notes
|
|
2.3
|
|
|
100
|
|
|
4.22
|
%
|
|
Total
|
|
|
|
4.5
|
|
|
$
|
3,317
|
|
|
3.38
|
%
|
(1)
|
Reflects annualized interest rate on all facilities including interest rate hedges. Where applicable, the interest rates are reflective of the April 2020 rating agencies updates.
|
Business
|
|
Debt(1)
|
|
Weighted
Average
Remaining Life
(in years)
|
|
Undrawn Amount
|
|
Interest Rate(2)
|
|||
MIC Corporate
|
|
Revolving Facility
|
|
1.7
|
|
|
$
|
1
|
|
|
LIBOR + 2.25%
|
IMTT
|
|
USD Revolving Facility
|
|
3.6
|
|
|
550
|
|
|
LIBOR + 1.75%
|
|
|
|
CAD Revolving Facility
|
|
3.6
|
|
|
50
|
|
|
Bankers' Acceptance Rate + 1.75%
|
|
MIC Hawaii
|
|
Revolving Facility
|
|
2.8
|
|
|
60
|
|
|
LIBOR + 1.25%
|
|
Total
|
|
|
|
3.5
|
|
|
$
|
661
|
|
|
|
(1)
|
Excludes $10 million of revolving commitments at Atlantic Aviation which is in place solely with respect to the existing letters of credit currently outstanding under its revolving credit facility. Such commitments will be reduced after each existing letter of credit expires or otherwise terminates.
|
($ In Millions)
|
Quarter Ended March 31,
|
Change
Favorable/(Unfavorable)
|
||||||||
|
2020
|
|
2019
|
|
||||||
|
$
|
|
$
|
|
$
|
|
%
|
|||
Cash provided by operating activities
|
|
99
|
|
151
|
|
(52
|
)
|
|
(34
|
)
|
Cash used in investing activities
|
|
(84)
|
|
(45)
|
|
(39
|
)
|
|
(87
|
)
|
Cash provided by (used in) financing activities
|
|
784
|
|
(90)
|
|
874
|
|
|
NM
|
|
•
|
a decrease in EBITDA excluding non-cash items; and
|
•
|
a decrease in the change in accounts payable primarily due to a decline in the amount and cost of jet fuel and LPG purchased; partially offset by
|
•
|
an increase in the change in accounts receivable resulting from declines in sales activity and lower retail prices on jet fuel.
|
•
|
cash generated from our operations (see “Operating Activities” in “Liquidity and Capital Resources”);
|
•
|
the issuance of shares or debt securities (see “Financing Activities” in “Liquidity and Capital Resources”);
|
•
|
refinancing of our current credit facilities on or before maturity (noting that it may be more difficult and/or costly to obtain financing while global markets continue to be disrupted by the impacts of COVID-19 (see “Financing Activities” in “Liquidity and Capital Resources”);
|
•
|
cash available from our undrawn credit facilities (see “Financing Activities” in “Liquidity and Capital Resources”); and
|
•
|
if advantageous, sale of all or part of any of our businesses (see “Investing Activities” in “Liquidity and Capital Resources”).
|
•
|
reductions in target interest rates by the Federal Reserve that have lowered the cost of borrowing; and
|
•
|
decreases in the price of crude oil and refined petroleum products, particularly jet fuel, that have lowered the cost of products provided by each of Atlantic Aviation and Hawaii Gas; partially offset by
|
•
|
the increase in the volatility of equity markets; and
|
•
|
the impact of lower LPG prices on our commodity hedge contracts.
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,156
|
|
|
$
|
357
|
|
Restricted cash
|
1
|
|
|
1
|
|
||
Accounts receivable, net of allowance for doubtful accounts
|
71
|
|
|
97
|
|
||
Inventories
|
24
|
|
|
31
|
|
||
Prepaid expenses
|
14
|
|
|
13
|
|
||
Income tax receivable
|
12
|
|
|
11
|
|
||
Other current assets
|
16
|
|
|
19
|
|
||
Total current assets
|
1,294
|
|
|
529
|
|
||
Property, equipment, land and leasehold improvements, net
|
3,220
|
|
|
3,202
|
|
||
Operating lease assets, net
|
332
|
|
|
336
|
|
||
Investment in unconsolidated business
|
8
|
|
|
9
|
|
||
Goodwill
|
2,044
|
|
|
2,043
|
|
||
Intangible assets, net
|
717
|
|
|
729
|
|
||
Other noncurrent assets
|
11
|
|
|
13
|
|
||
Total assets
|
$
|
7,626
|
|
|
$
|
6,861
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Due to Manager-related party
|
$
|
2
|
|
|
$
|
3
|
|
Accounts payable
|
34
|
|
|
67
|
|
||
Accrued expenses
|
83
|
|
|
86
|
|
||
Current portion of long-term debt
|
286
|
|
|
12
|
|
||
Operating lease liabilities - current
|
19
|
|
|
20
|
|
||
Fair value of derivative liabilities
|
13
|
|
|
7
|
|
||
Other current liabilities
|
26
|
|
|
35
|
|
||
Total current liabilities
|
463
|
|
|
230
|
|
||
Long-term debt, net of current portion
|
3,253
|
|
|
2,654
|
|
||
Deferred income taxes
|
679
|
|
|
679
|
|
||
Operating lease liabilities - noncurrent
|
318
|
|
|
320
|
|
||
Other noncurrent liabilities
|
169
|
|
|
167
|
|
||
Total liabilities
|
4,882
|
|
|
4,050
|
|
||
Commitments and contingencies
|
—
|
|
|
—
|
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
|
(Unaudited)
|
|
|
||||
Stockholders’ equity(1):
|
|
|
|
||||
Additional paid in capital
|
$
|
1,123
|
|
|
$
|
1,198
|
|
Accumulated other comprehensive loss
|
(40
|
)
|
|
(37
|
)
|
||
Retained earnings
|
1,652
|
|
|
1,641
|
|
||
Total stockholders’ equity
|
2,735
|
|
|
2,802
|
|
||
Noncontrolling interests
|
9
|
|
|
9
|
|
||
Total equity
|
2,744
|
|
|
2,811
|
|
||
Total liabilities and equity
|
$
|
7,626
|
|
|
$
|
6,861
|
|
(1)
|
The Company is authorized to issue the following classes of stock: (i) 500,000,000 shares of common stock, par value $0.001 per share. At March 31, 2020 and December 31, 2019, the Company had 86,814,466 shares and 86,600,302 shares of common stock issued and outstanding, respectively; (ii) 100,000,000 shares of preferred stock, par value $0.001 per share authorized. At March 31, 2020 and December 31, 2019, no preferred stocks were issued or outstanding; and (iii) 100 shares of special stock, par value $0.001 per share, issued and outstanding to its Manager as at March 31, 2020 and December 31, 2019.
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Revenue
|
|
|
|
||||
Service revenue
|
$
|
356
|
|
|
$
|
418
|
|
Product revenue
|
60
|
|
|
64
|
|
||
Total revenue
|
416
|
|
|
482
|
|
||
Costs and expenses
|
|
|
|
||||
Cost of services
|
145
|
|
|
168
|
|
||
Cost of product sales
|
42
|
|
|
40
|
|
||
Selling, general and administrative
|
96
|
|
|
80
|
|
||
Fees to Manager-related party
|
7
|
|
|
8
|
|
||
Depreciation
|
51
|
|
|
48
|
|
||
Amortization of intangibles
|
14
|
|
|
15
|
|
||
Total operating expenses
|
355
|
|
|
359
|
|
||
Operating income
|
61
|
|
|
123
|
|
||
Other income (expense)
|
|
|
|
||||
Interest income
|
—
|
|
|
3
|
|
||
Interest expense(1)
|
(42
|
)
|
|
(42
|
)
|
||
Other income, net
|
1
|
|
|
4
|
|
||
Net income from continuing operations before income taxes
|
20
|
|
|
88
|
|
||
Provision for income taxes
|
(9
|
)
|
|
(24
|
)
|
||
Net income from continuing operations
|
11
|
|
|
64
|
|
||
|
|
|
|
||||
Discontinued Operations(2)
|
|
|
|
||||
Net income from discontinued operations before income taxes
|
—
|
|
|
3
|
|
||
Benefit for income taxes
|
—
|
|
|
2
|
|
||
Net income from discontinued operations
|
—
|
|
|
5
|
|
||
Net income
|
11
|
|
|
69
|
|
||
|
|
|
|
||||
Net income from continuing operations
|
11
|
|
|
64
|
|
||
Net income from continuing operations attributable to MIC
|
11
|
|
|
64
|
|
||
Net income from discontinued operations
|
—
|
|
|
5
|
|
||
Less: net loss attributable to noncontrolling interests
|
—
|
|
|
(1
|
)
|
||
Net income from discontinued operations attributable to MIC
|
—
|
|
|
6
|
|
||
Net income attributable to MIC
|
$
|
11
|
|
|
$
|
70
|
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Basic income per share from continuing operations attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.75
|
|
Basic income per share from discontinued operations attributable to MIC
|
—
|
|
|
0.07
|
|
||
Basic income per share attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.82
|
|
Weighted average number of shares outstanding: basic
|
86,686,972
|
|
|
85,872,132
|
|
||
Diluted income per share from continuing operations attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.73
|
|
Diluted income per share from discontinued operations attributable to MIC
|
—
|
|
|
0.06
|
|
||
Diluted income per share attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.79
|
|
Weighted average number of shares outstanding: diluted
|
86,718,067
|
|
|
93,913,267
|
|
||
Cash dividends declared per share
|
$
|
—
|
|
|
$
|
1.00
|
|
(1)
|
Interest expense includes losses on derivative instruments of $9 million and $4 million for the quarters ended March 31, 2020 and 2019, respectively.
|
(2)
|
See Note 4, “Discontinued Operations and Dispositions”, for discussions on businesses classified as held for sale.
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net income
|
$
|
11
|
|
|
$
|
69
|
|
Other comprehensive loss, net of taxes:
|
|
|
|
||||
Translation adjustment (1)
|
(3
|
)
|
|
—
|
|
||
Other comprehensive loss
|
(3
|
)
|
|
—
|
|
||
Comprehensive income
|
8
|
|
|
69
|
|
||
Less: comprehensive loss attributable to noncontrolling interests
|
—
|
|
|
(1
|
)
|
||
Comprehensive income attributable to MIC
|
$
|
8
|
|
|
$
|
70
|
|
(1)
|
Translation adjustment is presented net of tax benefit of $1 million for the quarter ended March 31, 2020. See Note 10, "Stockholders' Equity", for further discussions.
|
|
In Shares
|
|
Additional
Paid In
Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||
|
Special
Stock
|
|
Common
Stock(1)
|
|
|||||||||||||||||||||||||
Balance at December 31, 2019
|
100
|
|
|
86,600,302
|
|
|
$
|
1,198
|
|
|
$
|
(37
|
)
|
|
$
|
1,641
|
|
|
$
|
2,802
|
|
|
$
|
9
|
|
|
$
|
2,811
|
|
Issuance of shares to Manager
|
—
|
|
|
213,365
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
Stock vested under compensation plans(2)
|
—
|
|
|
1,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock withheld for taxes on vested stock(2)
|
—
|
|
|
(301
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Dividends to common stockholders(3)
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
(87
|
)
|
||||||
Comprehensive (loss) income, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
11
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Balance at March 31, 2020
|
100
|
|
|
86,814,466
|
|
|
$
|
1,123
|
|
|
$
|
(40
|
)
|
|
$
|
1,652
|
|
|
$
|
2,735
|
|
|
$
|
9
|
|
|
$
|
2,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2018
|
100
|
|
|
85,800,303
|
|
|
$
|
1,510
|
|
|
$
|
(30
|
)
|
|
$
|
1,485
|
|
|
$
|
2,965
|
|
|
$
|
152
|
|
|
$
|
3,117
|
|
Issuance of shares to Manager
|
—
|
|
|
182,029
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Dividends to common stockholders(3)
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
(86
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Comprehensive income (loss), net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
70
|
|
|
(1
|
)
|
|
69
|
|
||||||
Balance at March 31, 2019
|
100
|
|
|
85,982,332
|
|
|
$
|
1,432
|
|
|
$
|
(30
|
)
|
|
$
|
1,555
|
|
|
$
|
2,957
|
|
|
$
|
149
|
|
|
$
|
3,106
|
|
(1)
|
The Company is authorized to issue 500,000,000 shares of common stock with a par value $0.001 per share.
|
(2)
|
Stocks vested and issued under the 2016 Omnibus Employee Incentive Plan and 2014 Independent Directors' Equity Plan. Under the 2016 Omnibus Employee Incentive Plan, shares are withheld for the employee portion of taxes on vested awards and are available for future grants.
|
(3)
|
See Note 13, “Related Party Transactions”, for cash dividends paid on shares for each period.
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Operating activities
|
|
|
|
||||
Net income from continuing operations
|
$
|
11
|
|
|
$
|
64
|
|
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
|
|
|
|
||||
Depreciation and amortization of property and equipment
|
51
|
|
|
48
|
|
||
Amortization of intangible assets
|
14
|
|
|
15
|
|
||
Amortization of debt financing costs
|
2
|
|
|
3
|
|
||
Amortization of debt discount
|
1
|
|
|
1
|
|
||
Adjustments to derivative instruments
|
12
|
|
|
7
|
|
||
Fees to Manager-related party
|
7
|
|
|
8
|
|
||
Deferred taxes
|
2
|
|
|
17
|
|
||
Other non-cash expense, net
|
5
|
|
|
4
|
|
||
Changes in other assets and liabilities, net of acquisitions:
|
|
|
|
||||
Accounts receivable
|
23
|
|
|
(11
|
)
|
||
Inventories
|
7
|
|
|
—
|
|
||
Prepaid expenses and other current assets
|
(2
|
)
|
|
(5
|
)
|
||
Accounts payable and accrued expenses
|
(27
|
)
|
|
(2
|
)
|
||
Income taxes payable
|
4
|
|
|
7
|
|
||
Other, net
|
(11
|
)
|
|
(5
|
)
|
||
Net cash provided by operating activities from continuing operations
|
99
|
|
|
151
|
|
||
Investing activities
|
|
|
|
||||
Acquisitions of businesses and investments, net of cash, cash equivalents and restricted cash acquired
|
(13
|
)
|
|
—
|
|
||
Purchases of property and equipment
|
(71
|
)
|
|
(44
|
)
|
||
Loan to project developer
|
—
|
|
|
(1
|
)
|
||
Net cash used in investing activities from continuing operations
|
(84
|
)
|
|
(45
|
)
|
||
Financing activities
|
|
|
|
||||
Proceeds from long-term debt
|
874
|
|
|
—
|
|
||
Payment of long-term debt
|
(3
|
)
|
|
(3
|
)
|
||
Dividends paid to common stockholders
|
(87
|
)
|
|
(86
|
)
|
||
Debt financing costs paid
|
—
|
|
|
(1
|
)
|
||
Net cash provided by (used in) financing activities from continuing operations
|
784
|
|
|
(90
|
)
|
||
Net change in cash, cash equivalents and restricted cash from continuing operations
|
799
|
|
|
16
|
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows (used in) provided by discontinued operations:
|
|
|
|
||||
Net cash used in operating activities
|
$
|
—
|
|
|
$
|
(13
|
)
|
Net cash used in investing activities
|
—
|
|
|
(8
|
)
|
||
Net cash provided by financing activities
|
—
|
|
|
23
|
|
||
Net cash provided by discontinued operations
|
—
|
|
|
2
|
|
||
Net change in cash, cash equivalents and restricted cash
|
799
|
|
|
18
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
358
|
|
|
629
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
1,157
|
|
|
$
|
647
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information from continuing operations:
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Accrued purchases of property and equipment
|
$
|
25
|
|
|
$
|
12
|
|
Issuance of shares to Manager
|
9
|
|
|
8
|
|
||
Leased assets obtained in exchange for new operating lease liabilities
|
5
|
|
|
1
|
|||
Taxes paid, net
|
3
|
|
|
1
|
|
||
Interest paid, net
|
21
|
|
|
31
|
|
|
As of March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash and cash equivalents
|
$
|
1,156
|
|
|
$
|
603
|
|
Restricted cash - current
|
1
|
|
|
23
|
|
||
Cash, cash equivalents and restricted cash included in assets held for sale(1)
|
—
|
|
|
21
|
|
||
Total of cash, cash equivalents and restricted cash shown in the consolidated condensed statement of cash flows
|
$
|
1,157
|
|
|
$
|
647
|
|
(1)
|
Represents cash, cash equivalents and restricted cash related to businesses classified as held for sale. See Note 4, “Discontinued Operations and Dispositions”, for further discussion.
|
•
|
International-Matex Tank Terminals (IMTT): a business providing bulk liquid storage and handling services to third-parties at 17 terminals in the U.S. and two in Canada;
|
•
|
Atlantic Aviation: a provider of jet fuel, terminal, aircraft hangaring and other services primarily to operators of general aviation (GA) jet aircraft at 70 airports throughout the U.S.;
|
•
|
MIC Hawaii: comprising a company that processes and distributes gas and provides related services (Hawaii Gas) and several smaller businesses collectively engaged in efforts to reduce the cost and improve the reliability and sustainability of energy in Hawaii; and
|
•
|
Corporate and Other: comprising MIC Corporate (holding company headquarters in New York City) and a shared services center in Plano, Texas.
|
|
Quarter Ended March 31, 2019
|
||
Product revenue
|
$
|
16
|
|
Cost of product sales
|
(3
|
)
|
|
Selling, general & administrative expenses
|
(4
|
)
|
|
Interest expense, net
|
(5
|
)
|
|
Other expense, net
|
(1
|
)
|
|
Net income from discontinued operations before income taxes
|
$
|
3
|
|
Benefit for income taxes
|
2
|
|
|
Net income from discontinued operations
|
$
|
5
|
|
Less: net loss attributable to noncontrolling interests
|
(1
|
)
|
|
Net income from discontinued operations attributable to MIC
|
$
|
6
|
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
||||
Net income from continuing operations attributable to MIC
|
$
|
11
|
|
|
$
|
64
|
|
Interest expense attributable to 2.875% Convertible Senior Notes due July 2019, net
of taxes
|
—
|
|
|
2
|
|||
Interest expense attributable to 2.00% Convertible Senior Notes due October 2023,
net of taxes
|
—
|
|
|
3
|
|||
Diluted net income from continuing operations attributable to MIC
|
$
|
11
|
|
|
$
|
69
|
|
Basic and diluted net income from discontinued operations attributable to MIC
|
$
|
—
|
|
|
$
|
6
|
|
Denominator:
|
|
|
|
||||
Weighted average number of shares outstanding: basic
|
86,686,972
|
|
85,872,132
|
||||
Dilutive effect of restricted stock unit grants(1)
|
31,095
|
|
23,646
|
||||
Dilutive effect of 2.875% Convertible Senior Notes due July 2019(2)
|
—
|
|
|
4,383,316
|
|||
Dilutive effect of 2.00% Convertible Senior Notes due October 2023
|
—
|
|
|
3,634,173
|
|||
Weighted average number of shares outstanding: diluted
|
86,718,067
|
|
93,913,267
|
(1)
|
Dilutive effect of restricted stock unit grants includes grants to independent directors under the 2014 Independent Directors' Equity Plan and certain employees of the Company's operating businesses under the 2016 Omnibus Employee Incentive Plan.
|
(2)
|
On July 15, 2019, the Company fully repaid the outstanding balance on the 2.875% Convertible Senior Notes due July 2019 at maturity using cash on hand.
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Income per share:
|
|
|
|
||||
Basic income per share from continuing operations attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.75
|
|
Basic income per share from discontinued operations attributable to MIC
|
—
|
|
|
0.07
|
|||
Basic income per share attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.82
|
|
Diluted income per share from continuing operations attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.73
|
|
Diluted income per share from discontinued operations attributable to MIC
|
—
|
|
|
0.06
|
|||
Diluted income per share attributable to MIC
|
$
|
0.13
|
|
|
$
|
0.79
|
|
|
Quarter Ended March 31,
|
||||
|
2020
|
|
2019
|
||
2.00% Convertible Senior Notes due October 2023
|
3,634,173
|
|
|
—
|
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
Land
|
$
|
319
|
|
|
$
|
319
|
|
Buildings
|
40
|
|
|
40
|
|
||
Leasehold and land improvements
|
828
|
|
|
813
|
|
||
Machinery and equipment
|
2,962
|
|
|
2,951
|
|
||
Furniture and fixtures
|
53
|
|
|
52
|
|
||
Construction in progress
|
182
|
|
|
143
|
|
||
|
4,384
|
|
|
4,318
|
|
||
Less: accumulated depreciation
|
(1,164
|
)
|
|
(1,116
|
)
|
||
Property, equipment, land and leasehold improvements, net
|
$
|
3,220
|
|
|
$
|
3,202
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Contractual arrangements
|
$
|
923
|
|
|
$
|
921
|
|
Non-compete agreements
|
14
|
|
|
14
|
|
||
Customer relationships
|
352
|
|
|
352
|
|
||
Trade names
|
16
|
|
|
16
|
|
||
Technology
|
9
|
|
|
9
|
|
||
|
1,314
|
|
|
1,312
|
|
||
Less: accumulated amortization
|
(597
|
)
|
|
(583
|
)
|
||
Intangible assets, net
|
$
|
717
|
|
|
$
|
729
|
|
|
IMTT
|
|
Atlantic Aviation
|
|
MIC Hawaii
|
|
Total
|
||||||||
Goodwill acquired in business combinations, net of disposals, at
December 31, 2019
|
$
|
1,430
|
|
|
$
|
619
|
|
|
$
|
123
|
|
|
$
|
2,172
|
|
Accumulated impairment charges
|
—
|
|
|
(123
|
)
|
|
(3
|
)
|
|
(126
|
)
|
||||
Other
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Balance at December 31, 2019
|
1,428
|
|
|
495
|
|
|
120
|
|
|
2,043
|
|
||||
Goodwill related to 2020 acquisition
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Balance at March 31, 2020
|
$
|
1,428
|
|
|
$
|
496
|
|
|
$
|
120
|
|
|
$
|
2,044
|
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
IMTT
|
$
|
1,109
|
|
|
$
|
1,109
|
|
Atlantic Aviation
|
1,287
|
|
|
1,015
|
|
||
MIC Hawaii
|
194
|
|
|
195
|
|
||
MIC Corporate
|
988
|
|
|
388
|
|
||
Total
|
3,578
|
|
|
2,707
|
|
||
Current portion
|
(286
|
)
|
|
(12
|
)
|
||
Long-term portion
|
3,292
|
|
|
2,695
|
|
||
Unamortized deferred financing costs(1)
|
(39
|
)
|
|
(41
|
)
|
||
Long-term portion less unamortized debt discount and deferred financing costs
|
$
|
3,253
|
|
|
$
|
2,654
|
|
(1)
|
The weighted average remaining life of the deferred financing costs at March 31, 2020 was 5.1 years.
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
Liability Component:
|
|
|
|
||||
Principal
|
$
|
403
|
|
|
$
|
403
|
|
Unamortized debt discount
|
(14
|
)
|
|
(15
|
)
|
||
Long-term debt, net of unamortized debt discount
|
389
|
|
|
388
|
|
||
Unamortized deferred financing costs
|
(6
|
)
|
|
(6
|
)
|
||
Net carrying amount
|
$
|
383
|
|
|
$
|
382
|
|
Equity Component
|
$
|
27
|
|
|
$
|
27
|
|
|
|
Assets (Liabilities) at Fair Value
|
||||||
Balance Sheet Classification
|
|
March 31,
2020 |
|
December 31, 2019
|
||||
Fair value of derivative instruments - other current assets
|
|
$
|
—
|
|
|
$
|
3
|
|
Fair value of derivative instruments - other noncurrent assets
|
|
—
|
|
|
2
|
|
||
Total derivative contracts - assets
|
|
$
|
—
|
|
|
$
|
5
|
|
Fair value of derivative instruments - current liabilities
|
|
$
|
(13
|
)
|
|
$
|
(7
|
)
|
Fair value of derivative instruments - other noncurrent liabilities
|
|
(2
|
)
|
|
—
|
|
||
Total derivative contracts – liabilities
|
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
Income Statement Classification
|
|
Amount of (Loss) Gain Recognized in
Consolidated Condensed Statements of Operations for the Quarters Ended March 31,
|
||||||
|
2020
|
|
2019
|
|||||
Interest expense - interest rate caps
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
Interest expense - interest rate swaps
|
|
(6
|
)
|
|
(2
|
)
|
||
Cost of product sales - commodity swaps
|
|
(5
|
)
|
|
1
|
|
||
Total
|
|
$
|
(14
|
)
|
|
$
|
(3
|
)
|
|
STIP Grants
|
|||||
|
Number of RSUs
(in units)
|
|
Weighted Average Grant-Date Fair Value
(per share)
|
|||
Unvested balance at December 31, 2019
|
—
|
|
|
$
|
—
|
|
Granted
|
55,661
|
|
24.50
|
|
||
Unvested balance at March 31, 2020
|
55,661
|
|
$
|
24.50
|
|
|
Special Grants
|
|||||
|
Number of RSUs
(in units)
|
|
Weighted Average Grant-Date Fair Value
(per share)
|
|||
Unvested balance at December 31, 2018
|
—
|
|
|
$
|
—
|
|
Granted
|
6,067
|
|
40.30
|
|
||
Unvested balance at December 31, 2019
|
6,067
|
|
40.30
|
|
||
Vested
|
(1,100)
|
|
40.30
|
|
||
Unvested balance at March 31, 2020
|
4,967
|
|
$
|
40.30
|
|
|
Post-Retirement Benefit Plans, net of taxes
|
|
Translation Adjustment, net of taxes(1)
|
|
Total Stockholders’ Accumulated Other Comprehensive Loss, net of taxes
|
||||||
Balance at December 31, 2018
|
$
|
(16
|
)
|
|
$
|
(14
|
)
|
|
$
|
(30
|
)
|
Balance at March 31, 2019
|
$
|
(16
|
)
|
|
$
|
(14
|
)
|
|
$
|
(30
|
)
|
|
|
|
|
|
|
||||||
Balance at December 31, 2019
|
$
|
(25
|
)
|
|
$
|
(12
|
)
|
|
$
|
(37
|
)
|
Translation adjustment
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Balance at March 31, 2020
|
$
|
(25
|
)
|
|
$
|
(15
|
)
|
|
$
|
(40
|
)
|
(1)
|
Translation adjustment is presented net of tax benefit of $1 million for the quarter ended March 31, 2020.
|
|
Quarter Ended March 31, 2020
|
||||||||||||||
|
IMTT
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Total Reportable Segments
|
||||||||
Service revenue
|
|
|
|
|
|
|
|
||||||||
Terminal services
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37
|
|
Lease
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
||||
Fuel
|
—
|
|
|
150
|
|
|
—
|
|
|
150
|
|
||||
Hangar
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||
Other
|
2
|
|
|
49
|
|
|
—
|
|
|
51
|
|
||||
Total service revenue
|
$
|
132
|
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
356
|
|
Product revenue
|
|
|
|
|
|
|
|
||||||||
Lease
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Gas
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
||||
Other
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Total product revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
60
|
|
Total revenue
|
$
|
132
|
|
|
$
|
224
|
|
|
$
|
60
|
|
|
$
|
416
|
|
|
Quarter Ended March 31, 2019
|
||||||||||||||||||
|
IMTT
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Intercompany Adjustments
|
|
Total Reportable Segments
|
||||||||||
Service revenue
|
|
|
|
|
|
|
|
|
|
||||||||||
Terminal services
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
Lease
|
135
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
134
|
|
|||||
Fuel
|
—
|
|
|
181
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|||||
Hangar
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||
Other
|
2
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Total service revenue
|
$
|
161
|
|
|
$
|
258
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
418
|
|
Product revenue
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Gas
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Total product revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
64
|
|
Total revenue
|
$
|
161
|
|
|
$
|
258
|
|
|
$
|
64
|
|
|
$
|
(1
|
)
|
|
$
|
482
|
|
|
Quarter Ended March 31, 2020
|
||||||||||||||||||
|
IMTT
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate and Other
|
|
Total Reportable Segments
|
||||||||||
Net income (loss)
|
$
|
18
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
(24
|
)
|
|
$
|
11
|
|
Interest expense, net
|
15
|
|
|
19
|
|
|
3
|
|
|
5
|
|
|
42
|
|
|||||
Provision (benefit) for income taxes
|
7
|
|
|
5
|
|
|
2
|
|
|
(5
|
)
|
|
9
|
|
|||||
Depreciation
|
31
|
|
|
16
|
|
|
4
|
|
|
—
|
|
|
51
|
|
|||||
Amortization of intangibles
|
3
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Fees to Manager-related party
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|||||
Other non-cash expense, net
|
3
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|||||
EBITDA excluding non-cash items
|
$
|
77
|
|
|
$
|
66
|
|
|
$
|
15
|
|
|
$
|
(17
|
)
|
|
$
|
141
|
|
|
Quarter Ended March 31, 2019
|
||||||||||||||||||
|
IMTT
|
|
Atlantic
Aviation
|
|
MIC
Hawaii
|
|
Corporate and Other
|
|
Total Reportable Segments
|
||||||||||
Net income (loss)
|
$
|
41
|
|
|
$
|
25
|
|
|
$
|
8
|
|
|
$
|
(10
|
)
|
|
$
|
64
|
|
Interest expense, net
|
13
|
|
|
19
|
|
|
3
|
|
|
4
|
|
|
39
|
|
|||||
Provision (benefit) for income taxes
|
16
|
|
|
9
|
|
|
3
|
|
|
(4
|
)
|
|
24
|
|
|||||
Depreciation
|
29
|
|
|
15
|
|
|
4
|
|
|
—
|
|
|
48
|
|
|||||
Amortization of intangibles
|
4
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Fees to Manager-related party
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|||||
Other non-cash expense, net
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|||||
EBITDA excluding non-cash items
|
$
|
104
|
|
|
$
|
79
|
|
|
$
|
20
|
|
|
$
|
(1
|
)
|
|
$
|
202
|
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Total reportable segments EBITDA excluding non-cash items
|
$
|
141
|
|
|
$
|
202
|
|
Interest income
|
—
|
|
|
3
|
|
||
Interest expense
|
(42
|
)
|
|
(42
|
)
|
||
Depreciation
|
(51
|
)
|
|
(48
|
)
|
||
Amortization of intangibles
|
(14
|
)
|
|
(15
|
)
|
||
Fees to Manager-related party
|
(7
|
)
|
|
(8
|
)
|
||
Other expense, net
|
(7
|
)
|
|
(4
|
)
|
||
Total consolidated net income from continuing operations
before income taxes
|
$
|
20
|
|
|
$
|
88
|
|
|
Quarter Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
IMTT
|
$
|
55
|
|
|
$
|
26
|
|
Atlantic Aviation
|
11
|
|
|
13
|
|
||
MIC Hawaii
|
5
|
|
|
5
|
|
||
Total capital expenditures of reportable segments
|
$
|
71
|
|
|
$
|
44
|
|
|
Property, Equipment,
Land and Leasehold
Improvements, net
|
|
Total Assets
|
||||||||||||
|
March 31,
2020 |
|
December 31, 2019
|
|
March 31,
2020 |
|
December 31, 2019
|
||||||||
IMTT
|
$
|
2,337
|
|
|
$
|
2,323
|
|
|
$
|
4,098
|
|
|
$
|
4,172
|
|
Atlantic Aviation
|
568
|
|
|
567
|
|
|
1,967
|
|
|
2,060
|
|
||||
MIC Hawaii
|
302
|
|
|
301
|
|
|
519
|
|
|
537
|
|
||||
Corporate and other
|
13
|
|
|
11
|
|
|
1,042
|
|
|
92
|
|
||||
Total consolidated assets
|
$
|
3,220
|
|
|
$
|
3,202
|
|
|
$
|
7,626
|
|
|
$
|
6,861
|
|
|
Lease
Revenue
(ASC 842)
|
|
Contract
Revenue
(ASC 606)
|
|
Total
Long-Term
Revenue
|
||||||
2020 remaining
|
$
|
251
|
|
|
$
|
59
|
|
|
$
|
310
|
|
2021
|
181
|
|
|
39
|
|
|
220
|
|
|||
2022
|
103
|
|
|
31
|
|
|
134
|
|
|||
2023
|
70
|
|
|
22
|
|
|
92
|
|
|||
2024
|
28
|
|
|
9
|
|
|
37
|
|
|||
Thereafter
|
115
|
|
|
19
|
|
|
134
|
|
|||
Total
|
$
|
748
|
|
|
$
|
179
|
|
|
$
|
927
|
|
Declared
|
|
Period Covered
|
|
$ per
Share |
|
Record Date
|
|
Payable Date
|
|
Cash Paid to Manager
(in millions) |
||||
February 14, 2020
|
|
Fourth quarter 2019
|
|
$
|
1.00
|
|
|
March 6, 2020
|
|
March 11, 2020
|
|
$
|
13
|
|
October 29, 2019
|
|
Third quarter 2019
|
|
1.00
|
|
|
November 11, 2019
|
|
November 14, 2019
|
|
13
|
|
||
July 30, 2019
|
|
Second quarter 2019
|
|
1.00
|
|
|
August 12, 2019
|
|
August 15, 2019
|
|
13
|
|
||
April 29, 2019
|
|
First quarter 2019
|
|
1.00
|
|
|
May 13, 2019
|
|
May 16, 2019
|
|
13
|
|
||
February 14, 2019
|
|
Fourth quarter 2018
|
|
1.00
|
|
|
March 4, 2019
|
|
March 7, 2019
|
|
13
|
|
Period
|
|
Base Management
Fee Amount
($ in millions)
|
|
Performance
Fee Amount
($ in millions)
|
|
Shares
Issued
|
||||||
2020 Activities:
|
|
|
|
|
|
|
|
|||||
First quarter 2020
|
|
$
|
7
|
|
|
$
|
—
|
|
|
181,617
|
(1)
|
|
|
|
|
|
|
|
|
|
|||||
2019 Activities:
|
|
|
|
|
|
|
|
|||||
Fourth quarter 2019
|
|
$
|
9
|
|
|
$
|
—
|
|
|
208,881
|
|
|
Third quarter 2019
|
|
8
|
|
|
—
|
|
|
201,827
|
|
|
||
Second quarter 2019
|
|
7
|
|
|
—
|
|
|
192,103
|
|
|
||
First quarter 2019
|
|
8
|
|
|
—
|
|
|
184,448
|
|
|
(1)
|
The Manager elected to reinvest all of the monthly base management fees for the first quarter of 2020 in new primary shares. The Company issued 181,617 shares for the quarter ended March 31, 2020, including 39,206 shares that were issued in April 2020 for the March 2020 monthly base management fee.
|
•
|
Impact on demand for our services and supply chain disruption. Restrictions on travel, public gatherings and stay-at-home orders have significantly reduced the demand for Atlantic Aviation’s services, including jet fuel sales and ancillary services. Tourism in Hawaii has significantly declined, resulting in the scaling back or closure of hotels and restaurants, which has significantly reduced the volume of gas required by Hawaii Gas’ commercial and industrial customers. In addition, disruptions in the supply chain could result in delay or an inability to obtain products, supplies and services needed in our operations.
|
•
|
Impact on employees and on cybersecurity. Many of our management and office personnel are working remotely, and many employees at our facilities are working reduced hours, are on furlough and/or are abiding by social distancing procedures. In addition, our operations may be negatively affected by employee illness and quarantines. Further, our management team has been required to devote large amounts of time and resources to mitigate the impact of the pandemic, thereby diverting attention from other Company priorities. In addition, the large scale remote working environment increases the risk that our information technology systems could be breached.
|
•
|
Impact on liquidity and financial metrics. The ongoing effect of the pandemic on our business has impacted our liquidity position and the cost of and ability to access funds from financial institutions and the capital markets, has caused a deterioration in our financial metrics or the business environment that has negatively impacts our credit ratings, and could make it more difficult to meet the financial covenants in our credit facilities.
|
•
|
Impact on capital expenditures and costs. We are reviewing and deferring certain non-essential capital expenditures, including certain growth capital expenditures. If we are unable to deploy growth capital as planned, our long term development prospects and ability to meet competitive challenges could be negatively impacted. We are also experiencing an increase in costs as a result of the Company’s pandemic response measures.
|
•
|
Impact on our customers' ability to pay. The pandemic's impact on the financial condition and operating results of our customers, and on the business environment generally, may result in delayed payments from customers and uncollectable accounts receivable, and could also result in the bankruptcy, insolvency or cessation of the business of certain of our customers.
|
•
|
Impact on trading and asset value. COVID-19 has resulted in volatile trading markets and meaningfully lower stock prices for many companies, including the trading price of our common stock. In addition, the ongoing impact of the pandemic on our businesses could cause an impairment to goodwill or long-lived assets of the Company.
|
•
|
Impact on our pursuit of strategic alternatives. In October 2019, we announced that we were pursuing strategic alternatives, which could result in, among other things, a sale of one or more of our businesses or potentially of the Company. COVID-19 has adversely affected economies and financial markets worldwide, impacted our stock price, affected the availability of financing, restricted travel and business activity, and adversely impacted the businesses of parties that may be interested in engaging in a strategic transaction. These effects have resulted in a slowdown in our process of pursuing strategic alternatives, and may make it more difficult for us to complete any strategic transactions at favorable valuations or at all.
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Number
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Description
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101.INS
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XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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104
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The cover page from the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in XBRL and contained in Exhibit 101.
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*
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Filed herewith.
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**
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Furnished herewith.
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MACQUARIE INFRASTRUCTURE CORPORATION
(Registrant)
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Dated: May 5, 2020
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By:
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/s/ Christopher Frost
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Name: Christopher Frost
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Title: Chief Executive Officer
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Dated: May 5, 2020
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By:
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/s/ Liam Stewart
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Name: Liam Stewart
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Title: Chief Financial Officer
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1.
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Certain Definitions. As used in this Amendment:
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By:
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/s/ Louis T. Pepper
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Name: Louis T. Pepper
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Title: President and Chief Executive Officer
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By:
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/s/ Liam Stewart
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Name: Liam Stewart
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Title: Treasurer
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By:
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/s/ Louis T. Pepper
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Name: Louis T. Pepper
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Title: President and Chief Executive Officer
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By:
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/s/ Alexander Vardaman
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Name: Alexander Vardaman
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Title: Authorized Officer
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1.
|
AA Charter Brokerage LLC
|
2.
|
ACM Property Services, LLC
|
3.
|
Atlantic Aviation - Florida LLC.
|
4.
|
Atlantic Aviation - Oxford LLC
|
5.
|
Atlantic Aviation - Salt Lake City LLC (organized in Delaware)
|
6.
|
Atlantic Aviation Albuquerque Inc.
|
7.
|
Atlantic Aviation Corporation (organized in Delaware)
|
8.
|
Atlantic Aviation Flight Support, Inc.
|
9.
|
Atlantic Aviation Holding Corporation
|
10.
|
Atlantic Aviation Investors, Inc.
|
11.
|
Atlantic Aviation of Santa Monica, L.P. (by its general partner Atlantic SMO GP LLC)
|
12.
|
Atlantic Aviation Oregon FBO Inc.
|
13.
|
Atlantic Aviation Oregon General Aviation Services Inc.
|
14.
|
Atlantic Aviation Philadelphia, Inc.
|
15.
|
Atlantic Aviation Stewart LLC
|
16.
|
Atlantic Aviation-Boca Raton LLC
|
17.
|
Atlantic Aviation-Kansas City LLC
|
18.
|
Atlantic Aviation-Montrose LLC
|
19.
|
Atlantic Aviation-Opa-Locka LLC
|
20.
|
Atlantic Aviation-Orlando Executive LLC
|
21.
|
Atlantic Aviation-Orlando LLC
|
22.
|
Atlantic Aviation-St. Augustine LLC
|
23.
|
Atlantic Aviation-Steamboat-Hayden LLC
|
24.
|
Atlantic Aviation-Stuart L.L.C.
|
25.
|
Atlantic Aviation-West Palm Beach LLC
|
26.
|
Atlantic SMO GP LLC
|
27.
|
Atlantic SMO Holdings LLC
|
28.
|
Aviation Contract Services, Inc.
|
29.
|
BASI Holdings, LLC
|
30.
|
Brainard Airport Services, Inc.
|
31.
|
Bridgeport Airport Services, Inc.
|
32.
|
Eagle Aviation Resources, Ltd.
|
33.
|
Executive Air Support, Inc.
|
34.
|
Flightways of Long Island, Inc.
|
35.
|
General Aviation Holdings, LLC
|
36.
|
General Aviation, L.L.C.
|
37.
|
ILG Avcenter, Inc.
|
38.
|
Jet Center Property Services, LLC
|
39.
|
JetSouth, LLC
|
40.
|
Keystone Aviation Services, LLC
|
41.
|
Macquarie Airports North America Inc.
|
42.
|
Macquarie Aviation North America 2 Inc.
|
43.
|
Macquarie Aviation North America Inc.
|
44.
|
Mercury Air Center - Corpus Christi, Inc.
|
45.
|
Mercury Air Center-Addison, Inc.
|
46.
|
Mercury Air Center-Bakersfield, Inc.
|
47.
|
Mercury Air Center-Birmingham, LLC
|
48.
|
Mercury Air Center-Burbank, Inc.
|
49.
|
Mercury Air Center-Charleston, LLC
|
50.
|
Mercury Air Center-Jackson, L.L.C.
|
51.
|
Mercury Air Center-Johns Island, LLC
|
52.
|
Mercury Air Center-Los Angeles, Inc.
|
53.
|
Mercury Air Center-Nashville, LLC
|
54.
|
Mercury Air Center-Newport News, LLC
|
55.
|
Mercury Air Center-Peachtree-DeKalb, LLC
|
56.
|
Mercury Air Center-Reno, LLC
|
57.
|
Mercury Air Centers, Inc.
|
58.
|
Mercury Air Center-Santa Barbara, Inc.
|
59.
|
Mercury Air Center-Tulsa, LLC
|
60.
|
MKC Aviation Fuel, LLC
|
61.
|
Newport FBO Two LLC
|
62.
|
Palm Springs FBO Two LLC
|
63.
|
Palomar Airport Center LLC
|
64.
|
Rifle Air, LLC
|
65.
|
Rifle Jet Center, LLC
|
66.
|
SB Aviation Group, Inc.
|
67.
|
SBN, Inc.
|
68.
|
Sierra Aviation, Inc.
|
69.
|
SJJC Aviation Services, LLC
|
70.
|
SJJC FBO Services, LLC
|
71.
|
Sun Valley Aviation, Inc.
|
72.
|
Trajen FBO, LLC
|
73.
|
Trajen Flight Support, LP (by its general partner Trajen FBO, LLC)
|
74.
|
Trajen Funding, Inc.
|
75.
|
Trajen Holdings, Inc.
|
76.
|
Trajen Limited, LLC
|
77.
|
Waukesha Flying Services, Inc.
|
78.
|
Atlantic Aviation Oklahoma City, Inc.
|
By:
|
|
|
Name:
|
|
Title:
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By:
|
|
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Name: Brad Troutman
|
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Title: CFO
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Revolving Lender
|
Current Revolving Commitment
|
%
|
New Revolving Commitment
|
%
|
New L/C Commitment
|
%
|
|
JPMORGAN CHASE BANK
|
$40,000,000.00
|
11.43
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%
|
$1,142,857.14
|
11.43%
|
$1,107,023.60
|
11.43%
|
COMPASS BANK dba BBVA COMPASS
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30,000,000.00
|
8.57
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%
|
857,142.86
|
8.57%
|
830,267.70
|
8.57%
|
BANK OF AMERICA, N.A.
|
30,000,000.00
|
8.57
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%
|
857,142.86
|
8.57%
|
830,267.70
|
8.57%
|
REGIONS BANK
|
30,000,000.00
|
8.57
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%
|
857,142.86
|
8.57%
|
830,267.70
|
8.57%
|
WELLS FARGO BANK, N.A.
|
30,000,000.00
|
8.57
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%
|
857,142.86
|
8.57%
|
830,267.70
|
8.57%
|
BMO HARRIS BANK, N.A.
|
25,000,000.00
|
7.14
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%
|
714,285.71
|
7.14%
|
691,889.75
|
7.14%
|
KEYBANK NATIONAL ASSOCIATION
|
25,000,000.00
|
7.14
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%
|
714,285.71
|
7.14%
|
691,889.75
|
7.14%
|
CITIZENS BANK, N.A.
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
MIZUHO BANK, LTD.
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
ROYAL BANK OF CANADA
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
TRUIST BANK
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
U.S. BANK NATIONAL ASSOCIATION
|
17,500,000.00
|
5.00
|
%
|
500,000.00
|
5.00%
|
484,322.83
|
5.00%
|
PNC BANK, NATIONAL ASSOCIATION
|
15,000,000.00
|
4.29
|
%
|
428,571.43
|
4.29%
|
415,133.85
|
4.29%
|
AMERICAN SAVINGS BANK, F.S.B.
|
10,000,000.00
|
2.86
|
%
|
285,714.29
|
2.86%
|
276,755.90
|
2.86%
|
FIRST HORIZON BANK
|
10,000,000.00
|
2.86
|
%
|
285,714.29
|
2.86%
|
276,755.90
|
2.86%
|
Total
|
$350,000,000.00
|
100.00
|
%
|
$10,000,000.00
|
100.00%
|
$9,686,456.50
|
100.00%
|
1.
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I have reviewed this quarterly report on Form 10-Q of Macquarie Infrastructure Corporation (the “registrant”);
|
2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s Board of Directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated: May 5, 2020
|
By:
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/s/ Christopher Frost
|
|
|
Christopher Frost
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Macquarie Infrastructure Corporation (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s Board of Directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated: May 5, 2020
|
By:
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/s/ Liam Stewart
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|
Liam Stewart
|
|
|
Chief Financial Officer
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(1)
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
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By:
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/s/ Christopher Frost
|
|
|
Christopher Frost
|
|
|
Chief Executive Officer
|
|
|
May 5, 2020
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
By:
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/s/ Liam Stewart
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|
|
Liam Stewart
|
|
|
Chief Financial Officer
|
|
|
May 5, 2020
|