EX-99.1 2 exhibit991_20210930.htm EX-99.1 Document

Macquarie Infrastructure Holdings, LLC
125 West 55th Street
New York, NY10019
United States
 Telephone
Facsimile
Internet:		 
+1 212 231 1825
+1 212 231 1828
www.macquarie.com/mic


FOR IMMEDIATE RELEASE

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, November 2, 2021 — 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.







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Summary Financial Information
Quarter Ended
September 30,		Change
Favorable/
(Unfavorable)		Nine Months Ended
September 30,		Change
Favorable/
(Unfavorable)
  20212020$%20212020$%
  ($ In Thousands, Except Unit and Per Unit Data) (Unaudited)
GAAP Metrics        
Continuing Operations        
Net loss$(274,651)$(5,490)(269,161)NM$(296,461)$(25,192)(271,269)NM
Net loss per unit attributable to MIH(3.12)(0.06)(3.06)NM(3.38)(0.29)(3.09)NM
Cash (used in) provided by operating activities(271,548)1,462 (273,010)NM(292,199)(1,324)(290,875)NM
Discontinued Operations
Net income (loss)$2,954,444 $(887,880)3,842,324 NM$2,996,984 $(864,249)3,861,233 NM
Net income (loss) per unit attributable to MIH33.61 (10.20)43.81 NM34.19 (9.95)44.14 NM
Cash provided by operating activities47,860 108,125 (60,265)(56)28,965 283,506 (254,541)(90)
Weighted average number of units outstanding: basic87,891,018 87,030,751 860,267 1 87,645,390 86,864,951 780,439 1 
MIH Non-GAAP Metrics
EBITDA excluding non-cash items - continuing operations
$(271,181)$2,052 (273,233)NM$(260,248)$8,258 (268,506)NM
Investment and acquisition/disposition costs280,161 3,335 276,826 NM291,036 16,161 274,875 NM
Adjusted EBITDA excluding non - cash items–continuing operations
8,980 5,387 3,593 67 30,788 24,419 6,369 26 
Cash interest(616)(3,546)2,930 83 (9,478)(10,935)1,457 13 
Cash taxes1,580 1,765 (185)(10)5,935 7,973 (2,038)(26)
Maintenance capital expenditures(2,007)(1,389)(618)(44)(4,767)(5,435)668 12 
Adjusted Free Cash Flow - continuing operations$7,937 $2,217 5,720 NM$22,478 $16,022 6,456 40 
NM — Not meaningful.
About MIC

MIC owns and operates businesses providing energy services, production and distribution in Hawaii. For additional information, please visit the MIC website at www.macquarie.com/mic.

Use of Non-GAAP Measures
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow

In addition to MIC’s results under U.S. GAAP, the Company uses the non-GAAP measures EBITDA excluding non-cash items and Free Cash Flow to assess the performance and prospects of its businesses.

MIC measures EBITDA excluding non-cash items as a reflection of its ability to effectively manage the volume of products sold or services provided, the operating margin earned on those transactions and the management of operating expenses independent of its capitalization and tax attributes. The Company believes investors use EBITDA excluding non-cash items primarily to assess the operating performance of its businesses and to make comparisons with the operating performance of other businesses whose depreciation and amortization expense may vary widely from MIC’s, particularly where acquisitions and other non-operating factors are involved. MIC defines EBITDA excluding non-cash items as net income (loss) or earnings —the most comparable GAAP measure— before interest, taxes, depreciation and amortization and non-cash items including impairments, unrealized derivative gains and losses, adjustments for other non-cash items and pension expense reflected in the statements of operations. Other non-cash expenses, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries. EBITDA excluding non-cash items also excludes base management fees and performance fees, if any, whether paid in cash or stock.

The Company’s is an owner of high-value, long-lived assets capable of generating substantial Free Cash Flow. MIC defines Free Cash Flow as cash from operating activities —the most comparable GAAP measure — less maintenance capital expenditures and adjusted for changes in working capital.

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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.

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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.

For further information, please contact:
Investors:
Jay Davis
Investor Relations
MIC
212-231-1825
 
Media:
Lee Lubarsky
Corporate Communications
MIC
212-231-2638
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MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

CONSOLIDATED CONDENSED BALANCE SHEETS
($ in Thousands, Except Unit Data)
September 30,
2021		December 31, 2020
(Unaudited)  
ASSETS
Current assets:    
Cash and cash equivalents$3,371,973 $1,518,108 
Restricted cash955 1,036 
Accounts receivable, net of allowance for doubtful accounts25,279 23,113 
Inventories10,543 9,564 
Prepaid expenses4,334 2,212 
Other current assets6,924 1,715 
Current assets held for sale(1)
— 2,185,002 
Total current assets3,420,008 3,740,750 
Property, equipment, land and leasehold improvements, net296,637 297,375 
Operating lease assets, net11,455 9,878 
Goodwill120,193 120,193 
Intangible assets, net4,604 4,923 
Other noncurrent assets11,067 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 payable6,820 13,082 
Accrued expenses18,891 17,798 
Current portion of long-term debt28,292 1,060 
Distribution payable3,297,420 960,981 
Operating lease liabilities - current1,829 2,019 
Other current liabilities4,755 9,591 
Current liabilities held for sale(1)
— 1,613,830 
Total current liabilities3,358,064 2,619,564 
Long-term debt, net of current portion97,861 578,169 
Deferred income taxes27,294 26,453 
Operating lease liabilities - noncurrent9,581 7,869 
Other noncurrent liabilities53,647 53,278 
Total liabilities3,546,447 3,285,333 
Commitments and contingencies— — 
Unitholders’ equity(2):
Common Units paid in capital (500,000,000 authorized; 88,197,409 units issued and outstanding
  on September 30, 2021 and 87,361,929 units issued and outstanding on December 31, 2020)		192,207 178,062 
Accumulated other comprehensive loss(6,171)(6,175)
Retained earnings123,027 713,129 
Total unitholders’ equity309,063 885,016 
Noncontrolling interests8,454 8,290 
Total equity317,517 893,306 
Total liabilities and equity$3,863,964 $4,178,639 
(1)See Note 4, “Discontinued Operations and Dispositions”, in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended September 30, 2021, for discussions on businesses classified as held for sale.
(2)The Company is authorized to issue 100,000,000 preferred units. On September 30, 2021 and December 31, 2020, no preferred units were issued or outstanding. The Company had 100 special units issued and outstanding to its Manager on September 30, 2021 and December 31, 2020.
5

MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($ in Thousands, Except Unit and Per Unit Data)
Quarter Ended
 September 30,		Nine Months Ended
September 30,
  2021202020212020
Revenue    
Product revenue$60,086 $39,036 $173,413 $136,293 
Total revenue60,086 39,036 173,413 136,293 
Costs and expenses
Cost of product sales40,613 25,059 113,203 85,218 
Selling, general and administrative61,704 11,135 88,429 40,561 
Disposition payment to Manager228,551 — 228,570 — 
Total Selling, general and administrative290,255 11,135 316,999 40,561 
Fees to Manager - related party7,698 4,980 20,801 16,160 
Depreciation3,757 3,717 11,133 10,906 
Amortization of intangibles107 105 319 318 
Total operating expenses 342,430 44,996 462,455 153,163 
Operating loss(282,344)(5,960)(289,042)(16,870)
Other income (expense)
Interest income6 (42)22 22 
Interest expense(1)
(948)(4,905)(13,991)(16,215)
Other income (expense), net180 (769)(238)(937)
Net loss from continuing operations before income taxes(283,106)(11,676)(303,249)(34,000)
Benefit for income taxes8,455 6,186 6,788 8,808 
Net loss from continuing operations(274,651)(5,490)(296,461)(25,192)
Discontinued Operations(2)
Net income (loss) from discontinued operations before income taxes3,004,955 (718,061)3,063,442 (688,499)
Provision for income taxes(50,511)(169,819)(66,458)(175,750)
Net income (loss) from discontinued operations2,954,444 (887,880)2,996,984 (864,249)
Net income (loss)2,679,793 (893,370)2,700,523 (889,441)
Net loss from continuing operations(274,651)(5,490)(296,461)(25,192)
Less: net (loss) income attributable to noncontrolling interest(14)(122)167 459 
Net loss from continuing operations attributable to MIH(274,637)(5,368)(296,628)(25,651)
Net income (loss) from discontinued operations2,954,444 (887,880)2,996,984 (864,249)
Net income (loss) from discontinued operations attributable to MIH2,954,444 (887,880)2,996,984 (864,249)
Net income (loss) attributable to MIH$2,679,807 $(893,248)$2,700,356 $(889,900)
Basic loss per units from continuing operations attributable to MIH$(3.12)$(0.06)$(3.38)$(0.29)
Basic income (loss) per units from discontinued operations attributable to MIH33.61 (10.20)34.19 (9.95)
Basic income (loss) per units attributable to MIH$30.49 $(10.26)$30.81 $(10.24)
Weighted average number of units outstanding: basic87,891,018 87,030,751 87,645,390 86,864,951 
Diluted loss per unit from continuing operations attributable to MIH$(3.12)$(0.06)$(3.38)$(0.29)
Diluted income (loss) per unit from discontinued operations attributable to MIH33.61 (10.20)34.19 (9.95)
Diluted income (loss) per unit attributable to MIH$30.49 $(10.26)$30.81 $(10.24)
Weighted average number of units outstanding: diluted87,891,018 87,030,751 87,645,390 86,864,951 
Cash distributions declared per unit$37.386817 $— $37.386817 $— 
(1)Interest expense includes non-cash gains on derivative instruments of $8,000 and $213,000 for the quarter and nine months ended September 30, 2021, respectively, compared with non-cash losses of $7,000 and $963,000 for the quarter and nine months ended September 30, 2020, respectively.
(2)See Note 4, “Discontinued Operations and Dispositions”, in our Notes to Consolidated Condensed Financial Statements in Part I of Form 10-Q for the quarter ended September 30, 2021, for discussions on businesses classified as held for sale.
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MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ in Thousands)
Nine Months Ended September 30,
  20212020
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:
Depreciation11,133 10,906 
Amortization of intangibles319 318 
Write-off of debt financing costs 4,170 2,882 
Amortization of debt discount and financing costs664 1,414 
Adjustments to derivative instruments(7,628)(4,290)
Fees to Manager - related party20,801 16,160 
Deferred taxes(853)(835)
Other non-cash expense, net4,274 4,085 
Changes in other assets and liabilities, net of acquisitions:
Accounts receivable(2,065)6,764 
Inventories(2,142)(272)
Prepaid expenses and other current assets(3,834)(1,531)
Accounts payable and accrued expenses(6,841)(3,376)
Income taxes payable(6,837)(10,472)
Other, net(6,899)2,115 
Net cash used in operating activities from continuing operations(292,199)(1,324)
Investing activities
Purchases of property and equipment(10,314)(10,790)
Other, net72 36 
Net cash used in investing activities from continuing operations(10,242)(10,754)
Financing activities
Payment of long-term debt(469,253)(1,003)
Dividends paid to common unitholders(960,981)— 
Distributions paid to noncontrolling interest(3)(3)
Debt financing costs paid(292)— 
Net cash used in financing activities from continuing operations(1,430,529)(1,006)
Net change in cash, cash equivalents, and restricted cash from continuing operations(1,732,970)(13,084)
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MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS – (continued)
(Unaudited)
($ in Thousands)
Nine Months Ended September 30,
  20212020
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 activities3,242,836 (192,913)
Net cash (used in) provided by financing activities(5,123)55,120 
Net cash provided by discontinued operations3,266,678 145,713 
Effect of exchange rate changes on cash and cash equivalents— (255)
Net change in cash, cash equivalents, and restricted cash1,533,708 132,374 
Cash, cash equivalents, and restricted cash, beginning of period1,839,220 358,565 
Cash, cash equivalents, and restricted cash, end of period$3,372,928 $490,939 
Supplemental disclosures of cash flow information:
Non-cash investing and financing activities:
Accrued purchases of property and equipment from continuing operations$680 $443 
Accrued purchases of property and equipment from discontinued operations4,201 14,848 
   Leased assets obtained in exchange for new operating lease liabilities from
     discontinued operations		14,666 9,419 
Cash distribution declared, but not yet paid3,297,420 — 
Taxes received, net, from continuing operations(625)— 
Taxes paid, net, from discontinued operations143,906 4,970 
Interest paid, net, from continuing operations12,901 10,165 
Interest paid, net, from discontinued operations29,616 68,544 

The following table provides a reconciliation of cash, cash equivalents, and restricted cash from both continuing and discontinued operations reported within the consolidated condensed balance sheets that is presented in the consolidated condensed statements of cash flows:
As of September 30,
  20212020
Cash and cash equivalents$3,371,973 $32,667 
Restricted cash - current955 1,374 
Cash, cash equivalents, and restricted cash included in assets held for sale— 456,898 
Total of cash, cash equivalents, and restricted cash shown in the consolidated condensed statements of cash flows$3,372,928 $490,939 

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MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS – MD&A
Quarter Ended
September 30,		Change
Favorable/(Unfavorable)		Nine Months Ended
September 30,		Change
Favorable/(Unfavorable)
  20212020$%20212020$%
  ($ In Thousands, Except Unit and Per Unit Data) (Unaudited)
Revenue        
Product revenue$60,086 $39,036 21,050 54 $173,413 $136,293 37,120 27 
Total revenue60,086 39,036 21,050 54 173,413 136,293 37,120 27 
Costs and expenses
Cost of product sales40,613 25,059 (15,554)(62)113,203 85,218 (27,985)(33)
Selling, general and administrative61,704 11,135 (50,569)NM88,429 40,561 (47,868)(118)
Disposition payment to Manager228,551 — (228,551)NM228,570 — (228,570)NM
Total Selling, general and administrative290,255 11,135 (279,120)NM316,999 40,561 (276,438)NM
Fees to Manager - related party7,698 4,980 (2,718)(55)20,801 16,160 (4,641)(29)
Depreciation and amortization3,864 3,822 (42)(1)11,452 11,224 (228)(2)
Total operating expenses 342,430 44,996 (297,434)NM462,455 153,163 (309,292)NM
Operating loss(282,344)(5,960)(276,384)NM(289,042)(16,870)(272,172)NM
Other income (expense)
Interest income6 (42)48 114 22 22 — — 
Interest expense(1)
(948)(4,905)3,957 81 (13,991)(16,215)2,224 14 
Other income (expense), net180 (769)949 123 (238)(937)699 75 
Net loss from continuing operations before income taxes(283,106)(11,676)(271,430)NM(303,249)(34,000)(269,249)NM
Benefit for income taxes8,455 6,186 2,269 37 6,788 8,808 (2,020)(23)
Net loss from continuing operations(274,651)(5,490)(269,161)NM(296,461)(25,192)(271,269)NM
Discontinued Operations
Net income (loss) from discontinued operations before income taxes3,004,955 (718,061)3,723,016 NM3,063,442 (688,499)3,751,941 NM
Provision for income taxes(50,511)(169,819)119,308 70 (66,458)(175,750)109,292 62 
Net income (loss) from discontinued operations2,954,444 (887,880)3,842,324 NM2,996,984 (864,249)3,861,233 NM
Net income (loss)2,679,793 (893,370)3,573,163 NM2,700,523 (889,441)3,589,964 NM
Net loss from continuing operations(274,651)(5,490)(269,161)NM(296,461)(25,192)(271,269)NM
Less: net (loss) income attributable to
   noncontrolling interests		(14)(122)(108)(89)167 459 292 64 
Net loss from continuing operations attributable to MIH(274,637)(5,368)(269,269)NM(296,628)(25,651)(270,977)NM
Net income (loss) from discontinued operations2,954,444 (887,880)3,842,324 NM2,996,984 (864,249)3,861,233 NM
Net income (loss) from discontinued operations attributable to MIH2,954,444 (887,880)3,842,324 NM2,996,984 (864,249)3,861,233 NM
Net income (loss) attributable to MIH$2,679,807 $(893,248)3,573,055 NM$2,700,356 $(889,900)3,590,256 NM
Basic loss per unit from continuing operations attributable to MIH$(3.12)$(0.06)(3.06)NM$(3.38)$(0.29)(3.09)NM
Basic income (loss) per unit from discontinued operations attributable to MIH33.61 (10.20)43.81 NM34.19 (9.95)44.14 NM
Basic income (loss) per unit attributable to MIH$30.49 $(10.26)40.75 NM$30.81 $(10.24)41.05 NM
Weighted average number of units outstanding:
   basic
87,891,018 87,030,751 860,267 1 87,645,390 86,864,951 780,439 1 
NM — Not meaningful.
(1)Interest expense includes non-cash gains on derivative instruments of $8,000 and $213,000 for the quarter and nine months ended September 30, 2021, respectively, compared with non-cash losses of $7,000 and $963,000 for the quarter and nine months ended September 30, 2020, respectively.
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MACQUARIE INFRASTRUCTURE HOLDINGS, LLC

RECONCILIATION OF CONSOLIDATED NET LOSS TO EBITDA EXCLUDING
NON-CASH ITEMS AND A RECONCILIATION FROM CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Quarter Ended
September 30,		Change
Favorable/(Unfavorable)		Nine Months Ended
September 30,		Change
Favorable/(Unfavorable)
20212020$%20212020$%
($ In Thousands) (Unaudited)
Net loss from continuing operations$(274,651)$(5,490)$(296,461)$(25,192)
Interest expense, net(1)
942 4,947 13,969 16,193 
Benefit for income taxes(8,455)(6,186)(6,788)(8,808)
Depreciation and amortization3,864 3,822 11,452 11,224 
Fees to Manager - related party7,698 4,980 20,801 16,160 
Other non-cash income, net(2)
(579)(21)(3,221)(1,319)
EBITDA excluding non-cash items - continuing operations$(271,181)$2,052 (273,233)NM$(260,248)$8,258 (268,506)NM
EBITDA excluding non-cash items - continuing operations$(271,181)$2,052 $(260,248)$8,258 
Interest expense, net(1)
(942)(4,947)(13,969)(16,193)
Non-cash interest expense, net(1)
326 1,401 4,491 5,258 
Benefit for current income taxes1,580 1,765 5,935 7,973 
Changes in working capital(1,331)1,191 (28,408)(6,620)
Cash (used in) provided by operating activities - continuing operations(271,548)1,462 (292,199)(1,324)
Changes in working capital1,331 (1,191)28,408 6,620 
Maintenance capital expenditures(2,007)(1,389)(4,767)(5,435)
Free cash flow - continuing operations$(272,224)$(1,118)(271,106)NM$(268,558)$(139)(268,419)NM
NM — Not meaningful.
(1)Interest expense, net, includes non-cash adjustments to derivative instruments, non-cash amortization of debt financing fees, and non-cash amortization of debt discount related to our 2.00% Convertible Senior Notes. For the quarter and nine months ended September 30, 2021, interest expense also includes non-cash write-offs of debt financing costs related to the repurchase of our 2.00% Convertible Senior Notes and the full repayment of $100.0 million of senior secured notes at Hawaii Gas. In connection with the repayment of the Hawaii Gas $100.0 million senior secured notes, the Company paid a $4.7 million 'make-whole' payment.
(2)Other non-cash income, net, includes primarily non-cash mark-to-market adjustment of the value of the commodity hedge contracts, non-cash compensation expense incurred in relation to the incentive plans for senior management of our operating businesses, and non-cash gains (losses) related to the write-off or disposal of assets or liabilities. Other non-cash income, net, excludes the adjustment to bad debt expense related to the specific reserve component, net of recoveries, for which this adjustment is reported in working capital in the above table. See “Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow” above for further discussion.

















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