Macquarie Infrastructure Company LLC Reports Third Quarter 2012 Financial Results, Increases Cash Dividend to $2.75 Annualized

  Macquarie Infrastructure Company LLC Reports Third Quarter 2012 Financial
  Results, Increases Cash Dividend to $2.75 Annualized

  *Quarterly cash dividend increased from $0.625 to $0.6875 per share
  *IMTT now paying full distributions consistent with Shareholders’ Agreement
  *Refinancing swap break payment at Hawaii Gas reduces free cash flow by
    $0.19 per share in third quarter
  *Outlook on 2012 EBITDA reaffirmed

Business Wire

NEW YORK -- October 31, 2012

Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results
for the third quarter of 2012 including proportionately combined free cash
flow of $32.1 million or $0.69 per share. Proportionately combined free cash
flow decreased 12.7% compared with the third quarter of 2011 primarily as a
result of a swap break payment incurred in connection with the previously
disclosed refinancing of debt facilities at Hawaii Gas.

For the nine months ended September 30, 2012 proportionately combined free
cash flow increased 9.8% to $2.57 per share compared with $2.34 per share for
the nine months ended September 30, 2011.

“I am pleased we were able to increase the dividend on the back of these
results. MIC now expects to generate proportionately combined free cash flow
of approximately $3.51 per share for the full year, and $3.70 per share as
previously indicated, normalized for the swap break payment,” said James
Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC.

“While the refinancing payment at Hawaii Gas reduced our headline result, the
underlying growth in proportionately combined free cash flow in the third
quarter was strong and we have not seen any significant slowing in our
business,” Hooke added.

MIC regards free cash flow as an important tool in assessing the performance
of its capital intensive, cash generative businesses. Proportionately combined
free cash flow refers to the sum of the free cash flow generated by MIC’s
businesses and investments in proportion to its equity interest in each and
after holding company costs.

MIC notes that free cash flow does not fully reflect its ability to freely
deploy generated cash, as it does not reflect required principal payments on
indebtedness, payments of dividends, potential growth capital expenditures and
other fixed obligations or the other cash items excluded when calculating free
cash flow. Free cash flow may be calculated differently by other companies
which limits its usefulness as a comparative measure. Free cash flow, as
defined by MIC, should be used as a supplemental measure and not in lieu of
financial results reported under GAAP. See “Cash Generation” below for MIC’s
definition of free cash flow and further information.

The Company’s Board approved an increase in its quarterly cash dividend from
$0.625 per share to $0.6875 per share. The 10% increase in the cash dividend
to $2.75 per share is consistent with MIC’s current intent to return a
substantial proportion of the cash it generates to shareholders. The increased
dividend will be paid on November 15, 2012 to shareholders of record on
November 12, 2012.

MIC reported that it has received all distributions for periods through and
including the second quarter of 2012 from its investment in
International-Matex Tank Terminals, or IMTT, a bulk liquid storage terminal
business, consistent with the Shareholders’ Agreement between the Company and
its co-investor in the business. The distributions include payments totaling
$50.3 million for the first and second quarters of 2012, $18.2 million of
which had been received earlier in the year.

A distribution of $15.2 million per shareholder for the third quarter of 2012,
also consistent with the Shareholders’ Agreement, was declared by the IMTT
board on October 25, 2012. MIC received the payment on October 31, 2012.

“I am pleased that our co-investor in IMTT supported the full payment of the
distributions due from IMTT for the first three quarters. We believe that we
have a framework for an agreement that will result in the continued payment of
full distributions from IMTT,” said Hooke.

MIC updated its guidance with respect to the payment of federal cash income
taxes in consolidation. MIC now believes that it will not have a material
federal cash income tax liability until early 2015. The further deferral of a
federal cash income tax liability is based on revised assumptions regarding
the rate of utilization of net operating loss carryforwards. MIC had
previously expected to incur federal cash income taxes early in 2014.

Consolidated Results for Third Quarter and Nine Month Periods

The Company reported net loss, before tax, of $1.9 million for the third
quarter of 2012 compared with a net income of $14.6 million in the third
quarter of 2011. The loss reflects primarily a $23.5 million performance fee
payable to MIC’s Manager for the third quarter of 2012 that was not incurred
in the prior comparable period. A performance fee is payable when the total
return to MIC shareholders at the end of a quarter is in excess of total
return produced by the Company’s benchmark, including any prior
underperformance. The fee for the third quarter of 2012 will be reinvested in
additional MIC LLC interests and is therefore effectively a non-cash expense.

For the nine months ended September 30, 2012, MIC reported net income, before
tax, of $40.8 million compared with net income of $28.1 million for the
comparable period in 2011.

MIC’s consolidated revenue for the third quarter of 2012 increased 3.1% to
$259.3 million compared with $251.6 million for the third quarter of 2011.
Consolidated revenue increased 6.0% for the nine-month period ended September
30, 2012 compared with the same period in 2011. The growth in revenue in 2012
reflects the increased volume of products sold and higher energy costs, such
as those for aviation fuel and gas products, which are passed through to
customers of MIC’s businesses.

Reported gross profit – defined as revenue less cost of goods sold – removes
the volatility in revenue associated with fluctuations in energy costs and
provides a clearer indication of trends in both the volume of and margin on
the products and services the Company provides. MIC’s consolidated gross
profit totaled $101.5 million in the third quarter of 2012, an increase of
2.5% over the same period in 2011. For the nine months ended September 30,
2012 the Company’s gross profit increased 5.2% compared with the same period
in 2011.

Cash Generation

MIC reports EBITDA excluding non-cash items on a consolidated and operating
segment basis and reconciles each to consolidated net income (loss). EBITDA
excluding non-cash items is a measure relied upon by management in evaluating
the performance of its businesses and investments. EBITDA excluding non-cash
items is defined as earnings before interest, taxes, depreciation and
amortization and non-cash items, which include impairments, gains and losses
on derivatives and adjustments for certain other non-cash items reflected in
the statement of operations.

MIC believes that EBITDA excluding non-cash items provides additional insight
into the performance of its operating businesses, relative to each other and
to similar businesses, without regard to capital structure, their ability to
service or reduce debt, fund capital expenditures and/or support distributions
to the holding company.

MIC also reports free cash flow, as defined below, on both a consolidated and
operating segment basis as a means of assessing the amount of cash generated
by its businesses and as a supplement to other information provided in
accordance with GAAP, and reconciles each to cash from operating activities.
MIC believes that reporting free cash flow provides additional insight into
its ability to deploy cash, as GAAP measures, such as net income (loss) and
cash from operating activities, do not reflect all of the items that
management considers in estimating the amount of cash generated by its
operating businesses. MIC defines free cash flow as cash from operating
activities, less maintenance capital expenditures and changes in working
capital.

                       For the Quarter Ended September 30, 2012
($ in Thousands)                   Hawaii      District   Atlantic    MIC         Proportionately                   District
(Unaudited)             IMTT 50%  Gas        Energy    Aviation   Corporate  Combined^(1)       IMTT 100%  Energy
                                               50.01%                                                               100%
                                                                                                             
                                                                                                                    
Gross profit            31,590     16,676      3,394      78,069      N/A         129,728               63,179      6,786
EBITDA excluding        27,955     12,632      4,019      33,893      (1,875 )    76,624                55,909      8,037
non-cash items
Free cash flow          12,689   (440   )   2,675    17,679    (552   )   32,050               25,377    5,348  
                                                                                                                    
                        For the Quarter Ended September 30, 2011
                                   Hawaii      District   Atlantic    MIC         Proportionately                   District
                        IMTT 50%  Gas        Energy    Aviation   Corporate  Combined^(1)          IMTT 100%  Energy
                                               50.01%                                                               100%
                                                                                                                    
Gross profit            30,496     15,680      3,393      76,571      N/A         126,140               60,992      6,785
EBITDA excluding        26,542     12,072      4,494      32,608      (2,035 )    73,681                53,083      8,987
non-cash items
Free cash flow          12,099   6,881     2,898    16,178    (1,696 )   36,359               24,197    5,794  
                                                                                                       
Gross profit variance   3.6    %  6.4    %   0.0   %   2.0     %  N/A       2.8        %          3.6     %  0.0    %
EBITDA excluding
non-cash items          5.3    %  4.6    %   (10.6 )%  3.9     %  7.9    %   4.0        %          5.3     %  (10.6  )%
variance
Free cash flow          4.9    %  (106.4 )%  (7.7  )%  9.3     %  67.5   %   (11.9      )%         4.9     %  (7.7   )%
variance
_____________________
(1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in
each of its operating businesses and MIC Corporate.


                        For the Nine Months Ended September 30, 2012
($ in Thousands)                   Hawaii      District   Atlantic    MIC         Proportionately                   District
(Unaudited)             IMTT 50%  Gas        Energy    Aviation   Corporate  Combined^(1)          IMTT 100%  Energy
                                               50.01%                                                               100%
                                                                                                                    
Gross profit            96,484     53,451      7,775      230,863     N/A         388,572               192,967     15,546
EBITDA excluding        86,127     41,262      9,141      99,379      (8,848 )    227,060               172,253     18,278
non-cash items
Free cash flow          50,268   16,165    5,942    51,422    (4,224 )   119,573              100,535   11,882 


                        For the Nine Months Ended September 30, 2011
                                   Hawaii      District   Atlantic    MIC         Proportionately                   District
                        IMTT 50%  Gas        Energy    Aviation   Corporate  Combined^(1)          IMTT 100%  Energy
                                               50.01%                                                               100%
                                                                                                                    
Gross profit            87,930     46,204      7,115      224,630     N/A         365,879               175,860     14,228
EBITDA excluding        76,764     35,241      9,038      93,846      (5,224 )    209,665               153,528     18,073
non-cash items
Free cash flow          39,736   18,224    5,767    45,893    (2,036 )   107,584              79,471    11,532 
                                                                                                       
Gross profit variance   9.7    %  15.7   %   9.3   %   2.8     %  N/A       6.2        %          9.7     %  9.3    %
EBITDA excluding
non-cash items          12.2   %  17.1   %   1.1   %   5.9     %  (69.4  )%  8.3        %          12.2    %  1.1    %
variance
Free cash flow          26.5   %  (11.3  )%  3.0   %   12.0    %  (107.5 )%  11.1       %          26.5    %  3.0    %
variance
_____________________
(1) Proportionately combined free cash flow is equal to the sum of free cash flow attributable to MIC's ownership interest in
each of its operating businesses and MIC Corporate.


IMTT

MIC has a 50% equity interest in IMTT, the operator of one of the largest
independent bulk liquid storage terminal businesses in the U.S. IMTT owns and
operates 10 marine storage terminals in the U.S. and is the part owner and
operator of two terminals in Canada. The terminals store and handle a wide
variety of petroleum grades, chemicals and vegetable and animal oils. To aid
in meaningful analysis of the performance of IMTT across periods, the
discussion below refer to results for 100% of the business, not MIC’s 50%
interest.

In 2012 compared with the prior comparable periods in 2011:

  *Terminal revenue increased 8.5% and 7.1% for the quarter and nine months
    ended September 30, 2012, respectively;

       *Average storage rental rates increased 9.2% and 6.9% for the quarter
         and nine months ended September 30, 2012, respectively - average
         storage rental rates are expected to increase by approximately 7.0%
         for the full year;
       *Capacity utilization was 93.3% and 94.5% for the quarter and nine
         months ended September 30, 2012, respectively - utilization decreased
         from 94.1% in the comparable quarter in 2011 and increased from 94.0%
         for the nine month period as a relatively larger portion of total
         capacity was out of service for cleaning and inspection in the third
         quarter of 2012;
       *Terminal operating costs increased 7.0% and 1.0% for the quarter and
         nine months ended September 30, 2012, respectively - the majority of
         the increase in the third quarter was attributable to an
         approximately $2.0 million increase in repairs and maintenance
         related to the effects of Hurricane Isaac;
       *Terminal gross profit increased 9.8% and 12.2% for the quarter and
         nine months ended September 30, 2012, respectively - excluding the
         expenses incurred in connection with the storm damage, terminal gross
         profit increased by 13.0% in the quarter and 13.2% in the nine month
         period.

Free cash flow generated by IMTT increased 4.9% to $25.4 million and 26.5% to
$100.5 million for the third quarter and nine months ended September 30, 2012,
respectively. The growth in free cash flow reflects the improved operating
results, primarily the increased terminal revenue, partially offset by higher
operating costs noted above, higher cash interest and cash capital
expenditures (in the third quarter), and a reduced contribution from IMTT’s
environmental services subsidiary.

Hurricane Isaac contributed to an increase in repairs and maintenance
expenses, generally, in the form of replacement of wind-damaged pipe and tank
insulation at facilities on the Lower Mississippi River. Excluding the
expenses incurred in connection with the storm damage, free cash flow would
have increased by approximately 12.5% in the third quarter of 2012 compared
with the third quarter of 2011.

The smaller contribution to IMTT’s financial results from its environmental
services business in 2012 reflects a reduced level of spill response activity
this year compared with last. Through nine months the environmental services
business operated at a small net loss.

IMTT has now paid all of the distributions that are due to MIC and its
co-investor through and including the third quarter of 2012 under the
Shareholders’ Agreement.

Hawaii Gas

MIC’s gas processing and distribution business in Hawaii, previously referred
to as The Gas Company, has been rebranded as Hawaii Gas. Hawaii Gas is the
owner and operator of the only regulated (“utility”) gas processing and
pipeline distribution network on the islands of Hawaii. The business is also
the owner and operator of the largest unregulated (“non-utility”) gas
distribution operation on the islands.

In 2012 compared with the prior comparable periods in 2011:

  *Non-utility contribution margin increased 19.1% and 29.3% in the quarter
    and nine months ended September 30, 2012, respectively - the impact of
    margin management and lower input costs was partially offset by a modest
    1.4% decrease in the volume of gas sold during the quarter however the
    volume of gas sold has increased 5.1% year to date; and
  *Utility contribution margin decreased 2.2% in the quarter and increased
    0.2% for the nine months ended September 30, 2012 – higher transportation
    costs offset a 1.4% increase in the volume of gas sold in the third
    quarter and a 1.9% increase in the volume of gas sold year to date.

Free cash flow was slightly negative at Hawaii Gas for the third quarter,
primarily as a result of a payment associated with breaking interest rate swap
agreements in connection with the previously announced refinance of the
business’ debt facilities. Hawaii Gas recorded a break payment of $8.7 million
in the quarter that reduced free cash flow to ($0.44) million. Excluding the
impact of the swap break payment, free cash flow at Hawaii Gas would have
increased by 20.1% to $8.3 million.

Hawaii Gas’ improved operating results, particularly the increased non-utility
contribution margin, reduced cash interest paid and lower capital
expenditures, were entirely offset by several items. In addition to the swap
break payment, the business incurred higher cash taxes, and increased wages
and benefits. Hawaii Gas also incurred costs in connection with both the
preparation of filings related to a proposed small scale importation of LNG
into Hawaii and the rebranding of the business.

In August 2012, MIC successfully refinanced the debt facilities of Hawaii Gas
and established a new revolving credit facility that is expected to partially
support the continued growth of the business. Existing operating company level
debt was replaced with $100.0 million of senior secured 10-year private
placement notes and a 5-year senior secured $60.0 million revolving credit
facility (undrawn). Existing intermediate holding debt was replaced with a
5-year $80.0 million senior secured term loan facility. The weighted average
cost of all Hawaii Gas debt facilities, including interest rate hedges, was
reduced from 4.9% to 3.6% and cash interest expense is expected to be reduced
by approximately $2.4 million annually.

District Energy

MIC’s District Energy business produces chilled water that it distributes via
underground pipelines in downtown Chicago to high-rise buildings for use in
air conditioning and process cooling systems. The business also operates a
site-specific operation that supplies both cooling and heating services to
three customers in Las Vegas, Nevada. MIC has a 50.01% (controlling) interest
in District Energy. The discussion below refers to results for 100% of the
business, not MIC’s 50.01% interest.

In 2012 compared with the prior comparable periods in 2011:

  *Cooling consumption revenue decreased 5.4% in the third quarter and
    increased 7.2% for the nine months ended September 30, 2012 - cooling
    consumption, net of electricity costs passed through to consumers,
    increased 4.4% in the third quarter and 16.0% for the year to date versus
    the prior comparable periods as higher average temperatures in 2012
    compared with 2011 resulted in increased demand for cooling;
  *Capacity revenue increased 1.6% and 2.4% to $5.6 million and $16.7 million
    for the quarter and nine months ended September 30, 2012, respectively -
    capacity revenue growth reflects increases in the number of customers
    being served and inflation adjustments to existing contracts; and
  *Gross profit was flat with the prior comparable quarter and up 9.3% for
    the nine months ended September 30.

Free cash flow decreased 7.7% to $5.3 million for the third quarter and
increased 3.0% to $11.9 million for the nine months ended September 30, 2012.
The decrease in the current quarter reflects primarily the reduction in
electricity load abatement payments and higher maintenance capital
expenditures in 2012 compared with 2011. The year to date increase reflects
the higher average temperatures resulting in increased demand for cooling in
Chicago in 2012 compared with 2011 and lower taxes partially offset by higher
capital expenditures. Effective with the third quarter of 2012, 100% of the
excess cash generated by District Energy is being swept to the repayment of
the business’ outstanding debt.

Atlantic Aviation

Atlantic Aviation owns and operates a network of fixed-base operations (FBO)
that primarily provide fuel, terminal services and aircraft hangar services to
owners and operators of general aviation (GA) aircraft at 63 airports in the
US. The network is one of the largest in the US air transportation industry.

In 2012 compared with the prior comparable periods in 2011:

  *GA fuel-related gross profit increased 5.4% and 5.3% for the third quarter
    and nine months ended September 30, 2012, respectively; on a same store
    basis, total fuel-related gross profit increased 4.0% and 3.3% for the
    quarter and year to date periods;
  *GA fuel-related gross profit improvement was partially offset by declines
    in non-GA and non-fuel gross profit – in particular, de-icing gross profit
    for the nine months ended September 30, 2012 declined 67.3% compared with
    the same period in 2011 as a result of the unseasonably mild winter in the
    northeast and central U.S. in 2012; and,
  *EBITDA excluding non-cash items increased 3.9% and 5.9% for the third
    quarter and nine months ended September 30, 2012, respectively; on a same
    store basis, EBITDA excluding non-cash items increased 8.3% and 6.8% for
    the quarter and year to date periods.

Free cash flow generated by Atlantic Aviation increased 9.3% to $17.7 million
and 12.0% to $51.4 million for the quarter and nine months ended September 30,
2012, respectively.  The increase in cash generation reflects primarily
improved operating results, lower cash interest expense and reduced swap break
costs partially offset by higher maintenance capital expenditures and cash
taxes.

Interest payable on Atlantic Aviation’s term loan capital expenditure
facilities decreased in early October from an all-in 6.47% to LIBOR + 1.725%
as a result of the expiration of interest rate hedges. As a result, cash
interest payable by the business going forward is expected to decline by
approximately $30.0 million per year. Effective with the expiration of the
hedges 100% of Atlantic Aviation’s free cash flow is being swept to the
reduction of the business’ term loan balance. Atlantic’s pro-forma leverage
ratio at quarter end decreased to 5.53x including a principal payment of $14.6
million made on October 16, 2012.

Business Outlook

MIC has revised its full year 2012 guidance for proportionately combined free
cash flow to approximately $3.51 per share taking into consideration the
impact of the interest rate swap break payment associated with the refinancing
of debt facilities at Hawaii Gas. Normalized for the impact of the swap break
payment, the Company’s guidance for proportionately combined free cash flow
remains $3.70 per share. For the nine months ended September 30, 2012, MIC’s
businesses generated $2.57 per share in proportionately combined free cash
flow.

The Company also reaffirmed its segment level guidance for 2012.

IMTT

  *The business is expected to produce EBITDA of between $230.0 and $240.0
    million
  *Increases in average storage rates are expected to be between 6.5% and
    7.5%
  *Maintenance capital expenditures are expected to be approximately $50.0
    million
  *The business is expected to pay cash state and federal income taxes of
    approximately $20.5 million - IMTT is not a part of MIC’s consolidated
    federal income tax group

Hawaii Gas

  *The business is expected to generate EBITDA of between $55.0 and $57.5
    million
  *Maintenance capital expenditures are expected to be approximately $7.0
    million.
  *The business is expected to incur cash state income taxes of approximately
    $1.5 million - a federal tax liability of approximately $4.8 million will
    be offset in consolidation by holding company level net operating loss
    carryforwards

District Energy

  *The business is expected to generate EBITDA of between $21.0 and $22.0
    million.
  *Maintenance capital expenditures are expected to be approximately $1.0
    million
  *The business is expected to incur cash income taxes totaling $1.0 million
    after application of available net operating loss carryforwards

Atlantic Aviation

  *The business is expected to generate EBITDA of between $130.0 and $135.0
    million.
  *The volume of GA fuel sold and the margin achieved on those sales is
    expected to continue to improve with the broader economy in the U.S.
  *Maintenance capital expenditures are expected to be approximately $11.5
    million
  *The business is expected to incur cash state income taxes totaling $1.8
    million - a federal income tax liability of approximately $0.6 million
    will be offset in consolidation by holding company level net operating
    loss carryforwards

Conference Call and WEBCAST

When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on
Thursday, November 1, 2012 to review the Company’s results.

How: To listen to the conference call please dial +1(650) 521-5252 at least 10
minutes prior to the scheduled start time. A webcast of the call will be
accessible via the Company’s website at www.macquarie.com/mic. Please allow
extra time prior to the call to visit the site and download the necessary
software to listen to the webcast.

Slides: The Company will prepare materials in support of its conference call
presentation. The materials will be available for downloading from the
Company’s website the morning of November 1, 2012 prior to the conference
call. A link to the materials will be located on the homepage of the MIC
website.

Replay: For interested individuals unable to participate in the live
conference call, a replay will be available after 2:00 p.m. on November 1,
2012 through November 8, 2012, at +1(404) 537-3406, Passcode: 43885180. An
online archive of the webcast will be available on the Company’s website for
one year following the call. MIC-G

About Macquarie Infrastructure Company

Macquarie Infrastructure Company owns, operates and invests in a diversified
group of infrastructure businesses providing basic services to customers in
the United States. Its businesses consist of three energy-related businesses
including a gas processing and distribution business, Hawaii Gas, a
controlling interest in a District Energy business in Chicago, and a 50%
interest in a bulk liquid storage terminal business, International-Matex Tank
Terminals. MIC also owns and operates an airport services business, Atlantic
Aviation. The Company is managed by a wholly-owned subsidiary of the Macquarie
Group. For additional information, please visit the Macquarie Infrastructure
Company website at www.macquarie.com/mic.

Forward-Looking Statements

This press release contains forward-looking statements. MIC 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. Forward-looking statements in this report
are subject to a number of risks and uncertainties, some of which are beyond
MIC’s control including, among other things: changes in general economic or
business conditions; its ability to service, comply with the terms of and
refinance debt, successfully integrate and manage acquired businesses, retain
or replace qualified employees, manage growth, make and finance future
acquisitions, and implement its strategy; its shared decision-making with
co-investors over investments including the distribution of dividends; its
regulatory environment establishing rate structures and monitoring quality of
service, demographic trends, the political environment, the economy, tourism,
construction and transportation costs, air travel, environmental costs and
risks, fuel and gas costs; its ability to recover increases in costs from
customers, reliance on sole or limited source suppliers, risks or conflicts of
interests involving its relationship with the Macquarie Group and changes in
U.S. federal tax law.

MIC’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 MIC 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 release may not
occur. These forward-looking statements are made as of the date of this
release. MIC undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

“Macquarie Group” refers to the Macquarie Group of companies, which comprises
Macquarie Group Limited and its worldwide subsidiaries and affiliates.
Macquarie Infrastructure Company LLC is not an authorized deposit-taking
institution for the purposes of the Banking Act 1959 (Commonwealth of
Australia) and its obligations do not represent deposits or other liabilities
of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or
otherwise provide assurance in respect of the obligations of Macquarie
Infrastructure Company LLC.

MACQUARIE INFRASTRUCTURE COMPANY LLC

CONSOLIDATED CONDENSED BALANCE SHEETS
($ In Thousands, Except Share Data)

                                                September 30,  December 31,
                                                 2012            2011
ASSETS                                           (Unaudited)
Current assets:
Cash and cash equivalents                        $ 150,797       $ 22,786
Accounts receivable, less allowance for
doubtful accounts of $492 and $445,                64,981          56,458
respectively
Inventories                                        22,370          23,106
Prepaid expenses                                   5,743           7,338
Deferred income taxes                              16,844          19,102
Other                                             15,684        14,523    
Total current assets                               276,419         143,313
Property, equipment, land and leasehold            559,096         561,022
improvements, net
Equipment lease receivables                        29,258          32,189
Investment in unconsolidated business              125,299         230,401
Goodwill                                           514,640         516,175
Intangible assets, net                             635,611         662,135
Other                                             22,568        23,398    
Total assets                                     $ 2,162,891    $ 2,168,633 
                                                                 
LIABILITIES AND MEMBERS' EQUITY
Current liabilities:
Due to manager - related party                   $ 29,498        $ 4,300
Accounts payable                                   31,908          29,199
Accrued expenses                                   26,994          23,827
Current portion of long-term debt                  97,577          34,535
Fair value of derivative instruments               9,216           39,339
Other                                             19,428        17,702    
Total current liabilities                          214,621         148,902
Long-term debt, net of current portion             1,010,726       1,086,053
Deferred income taxes                              192,101         177,262
Fair value of derivative instruments               7,280           15,576
Other                                             47,282        46,980    
Total liabilities                                 1,472,010     1,474,773 
Commitments and contingencies                      -               -
Members’ equity:
LLC interests, no par value; 500,000,000
authorized; 46,758,875 LLC interests issued
and outstanding at September 30, 2012 and          918,562         951,729
46,338,225 LLC interests issued and
outstanding at December 31, 2011
Additional paid in capital                         21,447          21,447
Accumulated other comprehensive loss               (19,654   )     (27,412   )
Accumulated deficit                               (218,731  )    (242,082  )
Total members’ equity                              701,624         703,682
Noncontrolling interests                          (10,743   )    (9,822    )
Total equity                                      690,881       693,860   
Total liabilities and equity                     $ 2,162,891    $ 2,168,633 


MACQUARIE INFRASTRUCTURE COMPANY LLC

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($ In Thousands, Except Share and Per Share Data)

                Quarter Ended                    Nine Months Ended
                 September 30,   September 30,    September 30,   September 30,
                 2012             2011             2012             2011
                                                                    
Revenue
Revenue from     $ 166,385        $ 159,834        $ 508,468        $ 474,480
product sales
Revenue from
product sales      35,535           35,088           110,656          105,782
- utility
Service            56,214           55,420           160,053          154,590
revenue
Financing and
equipment         1,119          1,236          3,448          3,784      
lease income
Total revenue     259,253        251,578        782,625        738,636    
                                                                    
Costs and
expenses
Cost of            111,677          107,475          346,778          326,026
product sales
Cost of
product sales      31,001           29,205           94,497           86,842
- utility
Cost of            15,044           15,860           41,489           40,704
services
Selling,
general and        51,571           50,706           157,301          150,685
administrative
Fees to
manager -          29,353           3,465            39,108           11,253
related party
Depreciation       7,596            10,072           22,704           25,905
Amortization       8,800            8,637            25,892           33,400
of intangibles
(Gain) loss on
disposal of       (1,706     )    518            (1,379     )    1,743      
assets
Total
operating         253,336        225,938        726,390        676,558    
expenses
                                                                                 
Operating          5,917            25,640           56,235           62,078
income
Other income
(expense)
Interest           110              3                116              104
income
Interest           (15,144    )     (14,638    )     (39,076    )     (48,973    )
expense^(1)
Equity in
earnings and
amortization       6,989            2,436            23,295           14,068
charges of
investee
Other income,     249            1,200          245            805        
net
Net (loss)
income before      (1,879     )     14,641           40,815           28,082
incomes taxes
Benefit
(provision)       1,758          (5,137     )    (14,698    )    (11,635    )
for income
taxes
Net (loss)       $ (121       )   $ 9,504          $ 26,117         $ 16,447
income
Less: net
income
attributable      1,758          3,128          2,766          1,396      
to
noncontrolling
interests
Net (loss)
income           $ (1,879     )   $ 6,376         $ 23,351        $ 15,051     
attributable
to MIC LLC
                                                                    
                                                                                 
Basic (loss)
income per
share
attributable     $ (0.04      )   $ 0.14          $ 0.50          $ 0.33       
to MIC LLC
interest
holders
Weighted
average number
of shares         46,684,627     46,088,783     46,524,980     45,908,258 
outstanding:
basic
Diluted (loss)
income per
share
attributable     $ (0.04      )   $ 0.14          $ 0.50          $ 0.33       
to MIC LLC
interest
holders
Weighted
average number
of shares         46,684,627     46,109,539     46,545,903     45,934,967 
outstanding:
diluted
Cash dividends
declared per     $ 0.6875        $ 0.20          $ 1.5125        $ 0.60       
share

_____________________
       Interest expense includes non-cash losses on derivative instruments of
       $9.4 million and $20.3 million for the quarter and nine months ended
(1)   September 30, 2012, respectively. For the quarter and nine months ended
       September 30, 2011, interest expense includes non-cash losses on
       derivative instruments of $8.7 million and $31.2 million, respectively.


MACQUARIE INFRASTRUCTURE COMPANY LLC

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ In Thousands)

                                      Nine Months Ended
                                       September 30, 2012  September 30, 2011
                                                            
Operating activities
Net income                             $   26,117           $    16,447
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of           27,740                30,874
property and equipment
Amortization of intangible assets          25,892                33,400
(Gain) loss on disposal of assets          (1,803     )          949
Equity in earnings and amortization        (23,295    )          (14,068   )
charges of investee
Equity distributions from investees        77,920                -
Amortization of debt financing costs       3,290                 3,074
Adjustments to derivative                  (23,680    )          (9,573    )
instruments
Base management fees settled in LLC        15,599                11,253
interests
Performance fees settled in LLC            23,509                -
interests
Equipment lease receivable, net            2,595                 2,271
Deferred rent                              314                   272
Deferred taxes                             10,459                8,680
Other non-cash expenses, net               2,340                 2,305
Changes in other assets and
liabilities:
Accounts receivable                        (8,882     )          (11,380   )
Inventories                                2,232                 (791      )
Prepaid expenses and other current         395                   (3,450    )
assets
Due to manager - related party             68                    1
Accounts payable and accrued               4,622                 (1,455    )
expenses
Income taxes payable                       727                   548
Other, net                                (1,576     )         (2,192    )
Net cash provided by operating             164,583               67,165
activities
                                                            
Investing activities
Acquisitions of businesses and             -                     (23,068   )
investments, net of cash acquired
Proceeds from sale of assets               5,625                 16,999
Purchases of property and equipment        (25,443    )          (23,496   )
Investment in capital leased assets        -                     (24       )
Return of investment in                    50,899                -
unconsolidated business
Other                                     72                  52        
Net cash provided by (used in)             31,153                (29,537   )
investing activities
                                                            
Financing activities
Proceeds from long-term debt               191,142               13,406
Net proceeds on line of credit             -                     4,400
facilities
Dividends paid to holders of LLC           (47,716    )          (18,376   )
interests
Distributions paid to noncontrolling       (4,286     )          (5,123    )
interests
Payment of long-term debt                  (203,428   )          (34,570   )
Debt financing costs paid                  (2,815     )          (4        )
Payment of notes and capital lease        (622       )         (107      )
obligations
Net cash used in financing                (67,725    )         (40,374   )
activities
                                                            
Net change in cash and cash                128,011               (2,746    )
equivalents
Cash and cash equivalents, beginning      22,786              24,563    
of period
Cash and cash equivalents, end of      $   150,797         $    21,817    
period
                                                            
Supplemental disclosures of cash
flow information
Non-cash investing and financing
activities:
Accrued purchases of property and      $   1,742           $    2,226     
equipment
Acquisition of equipment through       $   2,624           $    -         
capital leases
Issuance of LLC interests to manager   $   13,977          $    11,002    
for base management fees
Issuance of LLC interests to           $   571             $    450       
independent directors
Taxes paid                             $   3,734           $    2,382     
Interest paid                          $   50,863          $    55,178    


CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS – MD&A

                Quarter Ended              Change                   Nine Months Ended          Change
                 September 30,               Favorable/(Unfavorable)   September 30,               Favorable/(Unfavorable)
                 2012         2011          $             %          2012         2011          $             %
                 ($ In Thousands) (Unaudited)
Revenue
Revenue from     $ 166,385     $ 159,834     6,551          4.1        $ 508,468     $ 474,480     33,988         7.2
product sales
Revenue from
product sales      35,535        35,088      447            1.3          110,656       105,782     4,874          4.6
- utility
Service            56,214        55,420      794            1.4          160,053       154,590     5,463          3.5
revenue
Financing and
equipment         1,119       1,236      (117     )     (9.5   )    3,448       3,784      (336     )     (8.9   )
lease income
Total revenue     259,253     251,578    7,675         3.1         782,625     738,636    43,989        6.0
Costs and
expenses
Cost of            111,677       107,475     (4,202   )     (3.9   )     346,778       326,026     (20,752  )     (6.4   )
product sales
Cost of
product sales      31,001        29,205      (1,796   )     (6.1   )     94,497        86,842      (7,655   )     (8.8   )
- utility
Cost of           15,044      15,860     816           5.1         41,489      40,704     (785     )     (1.9   )
services
Gross profit       101,531       99,038      2,493          2.5          299,861       285,064     14,797         5.2
Selling,
general and        51,571        50,706      (865     )     (1.7   )     157,301       150,685     (6,616   )     (4.4   )
administrative
Fees to
manager -          29,353        3,465       (25,888  )     NM           39,108        11,253      (27,855  )     NM
related party
Depreciation       7,596         10,072      2,476          24.6         22,704        25,905      3,201          12.4
Amortization       8,800         8,637       (163     )     (1.9   )     25,892        33,400      7,508          22.5
of intangibles
(Gain) loss on
disposal of       (1,706  )    518        2,224         NM          (1,379  )    1,743      3,122         179.1
assets
Total
operating         95,614      73,398     (22,216  )     (30.3  )    243,626     222,986    (20,640  )     (9.3   )
expenses
Operating          5,917         25,640      (19,723  )     (76.9  )     56,235        62,078      (5,843   )     (9.4   )
income
Other income
(expense)
Interest           110           3           107            NM           116           104         12             11.5
income
Interest           (15,144 )     (14,638 )   (506     )     (3.5   )     (39,076 )     (48,973 )   9,897          20.2
expense^(1)
Equity in
earnings and
amortization       6,989         2,436       4,553          186.9        23,295        14,068      9,227          65.6
charges of
investee
Other income,     249         1,200      (951     )     (79.3  )    245         805        (560     )     (69.6  )
net
Net (loss)
income before      (1,879  )     14,641      (16,520  )     (112.8 )     40,815        28,082      12,733         45.3
income taxes
Benefit
(provision)       1,758       (5,137  )   6,895         134.2       (14,698 )    (11,635 )   (3,063   )     (26.3  )
for income
taxes
Net (loss)       $ (121    )   $ 9,504       (9,625   )     (101.3 )   $ 26,117      $ 16,447      9,670          58.8
income
Less: net
income
attributable      1,758       3,128      1,370         43.8        2,766       1,396      (1,370   )     (98.1  )
to
noncontrolling
interests
Net (loss)
income           $ (1,879  )   $ 6,376      (8,255   )     (129.5 )   $ 23,351     $ 15,051     8,300         55.1
attributable
to MIC LLC

______________________
NM - Not meaningful
       Interest expense includes non-cash losses on derivative instruments of
       $9.4 million and $20.3 million for the quarter and nine months ended
(1)   September 30, 2012, respectively. For the quarter and nine months ended
       September 30, 2011, interest expense includes non-cash losses on
       derivative instruments of $8.7 million and $31.2 million, respectively.


MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO MIC LLC TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM
OPERATING ACTIVITIES TO FREE CASH FLOW

                   Quarter Ended              Change                   Nine Months Ended          Change
                    September 30,               Favorable/(Unfavorable)   September 30,               Favorable/(Unfavorable)
                    2012         2011          $               %        2012         2011          $            %
                    ($ In Thousands) (Unaudited)
                                                                                                                    
Net (loss) income
attributable to     $ (1,879  )   $ 6,376                                 $ 23,351      $ 15,051
MIC LLC^(1)
Interest expense,     15,034        14,635                                  38,960        48,869
net^(2)
(Benefit)
provision for         (1,758  )     5,137                                   14,698        11,635
income taxes
Depreciation^(3)      7,596         10,072                                  22,704        25,905
Depreciation -
cost of               1,685         1,664                                   5,036         4,969
services^(3)
Amortization of       8,800         8,637                                   25,892        33,400
intangibles^(4)
(Gain) loss on
disposal of           (1,850  )     (204    )                               (1,803  )     949
assets
Equity in
earnings and
amortization          -             (2,436  )                               -             (14,068 )
charges of
investee^(5)
Base management
fees settled/to       5,844         3,465                                   15,599        11,253
be settled in LLC
interests
Performance fees
to be settled in      23,509        -                                       23,509        -
LLC interests
Other non-cash       2,695       4,286                               5,420       3,973             
expense, net
EBITDA excluding    $ 59,676     $ 51,632     8,044           15.6     $ 173,366    $ 141,936    31,430       22.1
non-cash items
                                                                                                                           
EBITDA excluding    $ 59,676      $ 51,632                                $ 173,366     $ 141,936
non-cash items
Interest expense,     (15,034 )     (14,635 )                               (38,960 )     (48,869 )
net^(2)
Interest rate
swap breakage         (8,701  )     -                                       (8,701  )     -
fees - Hawaii
Gas^(2)
Interest rate
swap breakage         (95     )     (515    )                               (595    )     (2,247  )
fees - Atlantic
Aviation^(2)
Adjustments to
derivative
instruments           (1,770  )     (4,093  )                               (14,384 )     (7,326  )
recorded in
interest
expense^(2)
Amortization of
debt financing        1,347         1,014                                   3,290         3,074
costs^(2)
Cash
distributions
received in
excess of equity      -             -                                       54,625        -
in earnings and
amortization
charges of
investee^(6)
Equipment lease       885           778                                     2,595         2,271
receivables, net
Benefit/provision
for income taxes,     (1,913  )     (1,827  )                               (4,239  )     (2,955  )
net of changes in
deferred taxes
Changes in           5,357       (6,476  )                              (2,414  )    (18,719 )
working capital
Cash provided by
operating             39,752        25,878                                  164,583       67,165
activities
Changes in            (5,357  )     6,476                                   2,414         18,719
working capital
Maintenance
capital              (5,371  )    (5,197  )                            (13,832 )    (12,271 )          
expenditures
Free cash flow      $ 29,024     $ 27,157     1,867           6.9      $ 153,165    $ 73,613     79,552       108.1

___________________
      Net (loss) income attributable to MIC LLC excludes net income
      attributable to noncontrolling interests of $1.8 million and $2.8
(1)  million for the quarter and nine months ended September 30, 2012,
      respectively, and net income attributable to noncontrolling interests of
      $3.1 million and $1.4 million for the quarter and nine months ended
      September 30, 2011, respectively.
      Interest expense, net, includes adjustments to derivative instruments,
(2)   non-cash amortization of deferred financing fees and interest rate swap
      breakage fees at Hawaii Gas and Atlantic Aviation.
      Depreciation - cost of services includes depreciation expense for
      District Energy, which is reported in cost of services in our
      consolidated condensed statements of operations. Depreciation and
      Depreciation - cost of services does not include acquisition- related
(3)   step-up depreciation expense of $2.0 million and $5.9 million for the
      quarter and nine months ended September 30, 2012, respectively, and $2.0
      million and $5.5 million for the quarter and nine months ended September
      30, 2011, respectively, in connection with our investment in IMTT, which
      is reported in equity in earnings and amortization charges of investee
      in our consolidated condensed statements of operations.
      Amortization of intangibles does not include acquisition-related step-up
      amortization expense of $85,000 and $256,000 for the quarter and nine
      months ended September 30, 2012, respectively, and $85,000 and $520,000
(4)   for the quarter and nine months ended September 30, 2011, respectively,
      in connection with our investment in IMTT, which is reported in equity
      in earnings and amortization charges of investee in our consolidated
      condensed statements of operations.
      Equity in earnings and amortization charges of investee in the above
      table includes our 50% share of IMTT's earnings, offset by the
      distributions we received only up to our share of the earnings recorded
      in the calculation for EBITDA excluding non-cash items. For the quarter
(5)   and nine months ended September 30, 2012, we recognized equity in
      earnings and amortization charges of investee income of $7.0 million and
      $23.3 million, respectively, in the consolidated condensed statement of
      operations, which was fully offset by the cash distributions received
      during the nine months ended September 30, 2012.
      Cash distributions received in excess of equity in earnings and
      amortization charges of investee in the above table is the excess
      cumulative distributions received to the cumulative earnings recorded in
      equity in earnings and amortization charges of investee, since our
      investment in IMTT, adjusted for the current periods equity in earnings
(6)   and amortization charges of investee in the calculation from net (loss)
      income attributable to MIC LLC to EBITDA excluding non-cash items above.
      The cumulative allocation of the $128.8 million distributions received
      during the nine months ended September 30, 2012 was $77.9 million
      recorded in net cash provided by operating activities and $50.9 million
      recorded in net cash provided by investing activities, as a return of
      investment, on the consolidated condensed statements of cash flows.


MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH FROM OPERATING ACTIVITIES TO FREE
CASH FLOW

IMTT

                       Quarter Ended                                   Nine Months Ended                  
                        September 30,                                       September 30,
                                               Change                                             Change
                        2012        2011        Favorable/(Unfavorable)     2012        2011        Favorable/(Unfavorable)
                        $           $           $             %             $           $           $              %
                      ($ In Thousands) (Unaudited)
Revenue
Terminal revenue        111,532     102,794     8,738         8.5           332,316     310,245     22,071         7.1
Environmental           7,069      11,775     (4,706  )     (40.0   )     18,052     22,105     (4,053   )     (18.3  )
response revenue
Total revenue           118,601     114,569     4,032         3.5           350,368     332,350     18,018         5.4
Costs and expenses
Terminal operating      49,509      46,289      (3,220  )     (7.0    )     141,886     140,459     (1,427   )     (1.0   )
costs
Environmental
response operating      5,913      7,288      1,375        18.9          15,515     16,031     516           3.2
costs
Total operating costs   55,422      53,577      (1,845  )     (3.4    )     157,401     156,490     (911     )     (0.6   )
Terminal gross profit   62,023      56,505      5,518         9.8           190,430     169,786     20,644         12.2
Environmental           1,156      4,487      (3,331  )     (74.2   )     2,537      6,074      (3,537   )     (58.2  )
response gross profit
Gross profit            63,179      60,992      2,187         3.6           192,967     175,860     17,107         9.7
General and
administrative          7,605       7,995       390           4.9           22,405      23,575      1,170          5.0
expenses
Depreciation and        16,992     16,052     (940    )     (5.9    )     51,016     48,087     (2,929   )     (6.1   )
amortization
Operating income        38,582      36,945      1,637         4.4           119,546     104,198     15,348         14.7
Interest expense,       (10,533 )   (24,319 )   13,786        56.7          (28,914 )   (45,313 )   16,399         36.2
net^(1)
Other income            417         94          323           NM            1,680       1,214       466            38.4
Provision for income    (11,631 )   (5,537  )   (6,094  )     (110.1  )     (37,867 )   (24,984 )   (12,883  )     (51.6  )
taxes
Noncontrolling          (451    )   94         (545    )     NM            (636    )   185        (821     )     NM
interest
Net income              16,384     7,277      9,107        125.1         53,809     35,300     18,509        52.4
                                                                                                                   
Reconciliation of net
income to EBITDA
excluding non-cash
items:
Net income              16,384      7,277                                   53,809      35,300
Interest expense,       10,533      24,319                                  28,914      45,313
net^(1)
Provision for income    11,631      5,537                                   37,867      24,984
taxes
Depreciation and        16,992      16,052                                  51,016      48,087
amortization
Other non-cash          369        (102    )                              647        (156    )   
expense (income)
EBITDA excluding        55,909     53,083     2,826        5.3           172,253    153,528    18,725        12.2
non-cash items
                                                                                                                   
EBITDA excluding        55,909      53,083                                  172,253     153,528
non-cash items
Interest expense,       (10,533 )   (24,319 )                               (28,914 )   (45,313 )
net^(1)
Adjustments to
derivative
instruments recorded    461         15,345                                  98          18,653
in interest
expense^(1)
Amortization of debt    805         808                                     2,419       2,426
financing costs^(1)
Provision for income
taxes, net of changes   (5,962  )   (6,181  )                               (14,565 )   (13,765 )
in deferred taxes
Changes in working      5,382      (17,621 )                               17,680     (30,468 )
capital
Cash provided by        46,062      21,115                                  148,971     85,061
operating activities
Changes in working      (5,382  )   17,621                                  (17,680 )   30,468
capital
Maintenance capital     (15,303 )   (14,539 )                              (30,756 )   (36,058 )   
expenditures
Free cash flow          25,377     24,197     1,180        4.9           100,535    79,471     21,064        26.5
_____________________
NM - Not meaningful
(1) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing
fees.


Hawaii Gas

                        Quarter Ended                                       Nine Months Ended
                        September 30,                                       September 30,
                                                Change                                              Change
                        2012        2011        Favorable/(Unfavorable)     2012        2011        Favorable/(Unfavorable)
                        $           $           $             %             $           $           $              %
                      ($ In Thousands) (Unaudited)
Contribution margin
Revenue - non-utility   26,894      28,056      (1,162  )     (4.1    )     88,271      82,342      5,929          7.2
Cost of revenue -       11,393     15,041     3,648        24.3          40,520     45,413     4,893         10.8
non-utility
Contribution margin -   15,501      13,015      2,486         19.1          47,751      36,929      10,822         29.3
non-utility
Revenue - utility       35,535      35,088      447           1.3           110,656     105,782     4,874          4.6
Cost of revenue -       26,202     25,547     (655    )     (2.6    )     81,568     76,758     (4,810   )     (6.3   )
utility
Contribution margin -   9,333       9,541       (208    )     (2.2    )     29,088      29,024      64             0.2
utility
Total contribution      24,834      22,556      2,278         10.1          76,839      65,953      10,886         16.5
margin
Production              2,819       1,867       (952    )     (51.0   )     6,952       5,321       (1,631   )     (30.7  )
Transmission and        5,339      5,009      (330    )     (6.6    )     16,436     14,428     (2,008   )     (13.9  )
distribution
Gross profit            16,676      15,680      996           6.4           53,451      46,204      7,247          15.7
Selling, general and
administrative          4,760       4,414       (346    )     (7.8    )     14,575      12,672      (1,903   )     (15.0  )
expenses
Depreciation and        1,965      1,843      (122    )     (6.6    )     5,808      5,418      (390     )     (7.2   )
amortization
Operating income        9,951       9,423       528           5.6           33,068      28,114      4,954          17.6
Interest expense,       (5,695  )   (2,415  )   (3,280  )     (135.8  )     (9,102  )   (7,912  )   (1,190   )     (15.0  )
net^(1)
Other (expense)         (153    )   70          (223    )     NM            (285    )   (209    )   (76      )     (36.4  )
income
Provision for income    (1,631  )   (2,689  )   1,058        39.3          (9,343  )   (7,901  )   (1,442   )     (18.3  )
taxes
Net income^(2)          2,472      4,389      (1,917  )     (43.7   )     14,338     12,092     2,246         18.6
                                                                                                                   
Reconciliation of net
income to EBITDA
excluding non-cash
items:
Net income^(2)          2,472       4,389                                   14,338      12,092
Interest expense,       5,695       2,415                                   9,102       7,912
net^(1)
Provision for income    1,631       2,689                                   9,343       7,901
taxes
Depreciation and        1,965       1,843                                   5,808       5,418
amortization
Other non-cash          869        736                                   2,671      1,918      
expenses
EBITDA excluding        12,632     12,072     560          4.6           41,262     35,241     6,021         17.1
non-cash items
                                                                                                                   
EBITDA excluding        12,632      12,072                                  41,262      35,241
non-cash items
Interest expense,       (5,695  )   (2,415  )                               (9,102  )   (7,912  )
net^(1)
Interest rate swap      (8,701  )   -                                       (8,701  )   -
breakage fees^(1)
Adjustments to
derivative
instruments recorded    4,386       35                                      3,089       932
in interest
expense^(1)
Amortization of debt    507         119                                     746         358
financing costs^(1)
Provision for income
taxes, net of changes   (1,513  )   (562    )                               (5,888  )   (4,107  )
in deferred taxes
Changes in working      4,822      (1,030  )                               1,117      (7,479  )
capital
Cash provided by        6,438       8,219                                   22,523      17,033
operating activities
Changes in working      (4,822  )   1,030                                   (1,117  )   7,479
capital
Maintenance capital     (2,056  )   (2,368  )                              (5,241  )   (6,288  )   
expenditures
Free cash flow          (440    )   6,881      (7,321  )     (106.4  )     16,165     18,224     (2,059   )     (11.3  )
_____________________
NM - Not meaningful
(1) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees
and interest rate swap breakage fees.
(2) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are
eliminated on consolidation at the MIC Inc. level.


District Energy

                        Quarter Ended                                       Nine Months Ended
                        September 30,                                       September 30,
                                                Change                                              Change
                        2012        2011        Favorable/(Unfavorable)     2012        2011        Favorable/(Unfavorable)
                        $           $           $             %             $           $           $              %
                      ($ In Thousands) (Unaudited)
                                                                                                                   
Cooling capacity        5,613       5,523       90            1.6           16,675      16,282      393            2.4
revenue
Cooling consumption     10,490      11,091      (601    )     (5.4    )     20,853      19,445      1,408          7.2
revenue
Other revenue           702         688         14            2.0           2,023       2,281       (258     )     (11.3  )
Finance lease revenue   1,119      1,236      (117    )     (9.5    )     3,448      3,784      (336     )     (8.9   )
Total revenue           17,924     18,538     (614    )     (3.3    )     42,999     41,792     1,207         2.9
Direct expenses —       5,901       6,697       796           11.9          12,587      12,318      (269     )     (2.2   )
electricity
Direct expenses —       5,237      5,056      (181    )     (3.6    )     14,866     15,246     380           2.5
other^(1)
Direct expenses —       11,138      11,753      615           5.2           27,453      27,564      111            0.4
total
Gross profit            6,786       6,785       1             0.0           15,546      14,228      1,318          9.3
Selling, general and
administrative          823         764         (59     )     (7.7    )     2,675       2,449       (226     )     (9.2   )
expenses
Amortization of         345        345        -            -             1,027      1,023      (4       )     (0.4   )
intangibles
Operating income        5,618       5,676       (58     )     (1.0    )     11,844      10,756      1,088          10.1
Interest expense,       (2,065  )   (4,566  )   2,501         54.8          (6,521  )   (11,750 )   5,229          44.5
net^(2)
Other income            436         1,201       (765    )     (63.7   )     568         1,312       (744     )     (56.7  )
(Provision) benefit     (1,560  )   (865    )   (695    )     (80.3   )     (2,171  )   132         (2,303   )     NM
for income taxes
Noncontrolling          (203    )   (212    )   9            4.2           (622    )   (638    )   16            2.5
interest
Net income (loss)       2,226      1,234      992          80.4          3,098      (188    )   3,286         NM
                                                                                                                   
Reconciliation of net
income (loss) to
EBITDA excluding
non-cash items:
Net income (loss)       2,226       1,234                                   3,098       (188    )
Interest expense,       2,065       4,566                                   6,521       11,750
net^(2)
Provision (benefit)     1,560       865                                     2,171       (132    )
for income taxes
Depreciation^(1)        1,685       1,664                                   5,036       4,969
Amortization of         345         345                                     1,027       1,023
intangibles
Other non-cash          156        313                                   425        651        
expenses
EBITDA excluding        8,037      8,987      (950    )     (10.6   )     18,278     18,073     205           1.1
non-cash items
                                                                                                                   
EBITDA excluding        8,037       8,987                                   18,278      18,073
non-cash items
Interest expense,       (2,065  )   (4,566  )                               (6,521  )   (11,750 )
net^(2)
Adjustments to
derivative
instruments recorded    (589    )   1,865                                   (1,458  )   3,808
in interest
expense^(2)
Amortization of debt    177         171                                     522         511
financing costs^(2)
Equipment lease         885         778                                     2,595       2,271
receivable, net
Provision/benefit for
income taxes, net of    (619    )   (1,277  )                               (892    )   (1,092  )
changes in deferred
taxes
Changes in working      419        (789    )                               (1,453  )   (608    )
capital
Cash provided by        6,245       5,169                                   11,071      11,213
operating activities
Changes in working      (419    )   789                                     1,453       608
capital
Maintenance capital     (478    )   (164    )                              (642    )   (289    )   
expenditures
Free cash flow          5,348      5,794      (446    )     (7.7    )     11,882     11,532     350           3.0
_____________________               
NM - Not meaningful
(1) Includes depreciation expense of $1.7 million and $5.0 million for the quarter and nine months ended September 30,
2012, respectively, and $1.7 million and $5.0 million for the quarter and nine months ended September 30, 2011,
respectively.
(2) Interest expense, net, includes adjustments to derivative instruments and non-cash amortization of deferred financing
fees.


Atlantic Aviation

                        Quarter Ended                                       Nine Months Ended
                        September 30,                                       September 30,
                                                Change                                              Change
                        2012        2011        Favorable/(Unfavorable)   2012        2011        Favorable/(Unfavorable)
                        $           $           $             %             $           $           $              %
                      ($ In Thousands) (Unaudited)
Revenue
Fuel revenue            139,491     131,778     7,713         5.9           420,197     392,138     28,059         7.2
Non-fuel revenue        39,409     38,118     1,291        3.4           120,502    116,582    3,920         3.4
Total revenue           178,900     169,896     9,004         5.3           540,699     508,720     31,979         6.3
Cost of revenue
Cost of revenue-fuel    96,925      89,217      (7,708  )     (8.6    )     295,800     270,949     (24,851  )     (9.2   )
Cost of                 3,906      4,108      202          4.9           14,036     13,141     (895     )     (6.8   )
revenue-non-fuel
Total cost of revenue   100,831     93,325      (7,506  )     (8.0    )     309,836     284,090     (25,746  )     (9.1   )
Fuel gross profit       42,566      42,561      5             0.0           124,397     121,189     3,208          2.6
Non-fuel gross profit   35,503     34,010     1,493        4.4           106,466    103,441    3,025         2.9
Gross profit            78,069     76,571     1,498        2.0           230,863    224,630    6,233         2.8
Selling, general and
administrative          43,983      43,430      (553    )     (1.3    )     130,830     130,105     (725     )     (0.6   )
expenses
Depreciation and        14,086      16,521      2,435         14.7          41,761      52,864      11,103         21.0
amortization
(Gain) loss on          (1,706  )   518        2,224        NM            (1,379  )   1,743      3,122         179.1
disposal of assets
Operating income        21,706      16,102      5,604         34.8          59,651      39,918      19,733         49.4
Interest expense,       (7,381  )   (7,655  )   274           3.6           (23,448 )   (29,209 )   5,761          19.7
net^(1)
Other (expense)         (10     )   (18     )   8             44.4          38          (195    )   233            119.5
income
Provision for income    (6,531  )   (3,396  )   (3,135  )     (92.3   )     (15,815 )   (4,236  )   (11,579  )     NM
taxes
Net income^(2)          7,784      5,033      2,751        54.7          20,426     6,278      14,148        NM
                                                                                                                   
Reconciliation of net
income to EBITDA
excluding non-cash
items:
Net income^(2)          7,784       5,033                                   20,426      6,278
Interest expense,       7,381       7,655                                   23,448      29,209
net^(1)
Provision for income    6,531       3,396                                   15,815      4,236
taxes
Depreciation and        14,086      16,521                                  41,761      52,864
amortization
(Gain) loss on          (1,850  )   (204    )                               (1,803  )   949
disposal of assets
Other non-cash          (39     )   207                                   (268    )   310        
(income) expenses
EBITDA excluding        33,893     32,608     1,285        3.9           99,379     93,846     5,533         5.9
non-cash items
                                                                                                                   
EBITDA excluding        33,893      32,608                                  99,379      93,846
non-cash items
Interest expense,       (7,381  )   (7,655  )                               (23,448 )   (29,209 )
net^(1)
Interest rate swap      (95     )   (515    )                               (595    )   (2,247  )
breakage fees^(1)
Adjustments to
derivative
instruments recorded    (5,567  )   (5,993  )                               (16,015 )   (12,066 )
in interest
expense^(1)
Amortization of debt    663         724                                     2,022       2,205
financing costs^(1)
Provision for income
taxes, net of changes   (997    )   (326    )                               (1,972  )   (942    )
in deferred taxes
Changes in working      1,904      (4,620  )                               2,549      (7,482  )
capital
Cash provided by        22,420      14,223                                  61,920      44,105
operating activities
Changes in working      (1,904  )   4,620                                   (2,549  )   7,482
capital
Maintenance capital     (2,837  )   (2,665  )                              (7,949  )   (5,694  )   
expenditures
Free cash flow          17,679     16,178     1,501        9.3           51,422     45,893     5,529         12.0
_____________________
NM - Not meaningful
(1) Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees
and interest rate swap breakage fees.
(2) Corporate allocation expense, intercompany fees and the tax effect have been excluded from the above table as they are
eliminated on consolidation at the MIC Inc. level.


<td class="bwpadl0 bwnowrap bwpadr0 bwvert*Story too large*
MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND CASH
FROM OPERATING ACTIVITIES TO FREE CASH FLOW

              For the Quarter Ended September 30, 2012
($ in          IMTT     Hawaii   District   Atlantic   MIC         Proportionately       IMTT      District
Thousands)     50%     Gas     Energy    Aviation  Corporate  Combined^(1)       100%     Energy
(Unaudited)                      50.01%                                                            100%
                                                                                            
Net income
(loss)         8,192    2,472    1,113      7,784      (21,350 )   (1,789     )          16,384    2,226
attributable
to MIC LLC
Interest
expense        5,267    5,695    1,033      7,381      (107    )   19,268                10,533    2,065
(income),
net^(2)
Provision
(benefit)      5,816    1,631    780        6,531      (11,480 )   3,278                 11,631    1,560
for income
taxes
Depreciation   8,181    1,759    843        5,837      -           16,619                16,361    1,685
Amortization
of             316      206      173        8,249      -           8,943                 631       345
intangibles
Gain on
disposal of    -        -        -          (1,850 )   -           (1,850     )          -         -
assets
Base
management
fee paid in    -        -
LLC
interests

[TRUNCATED]
 
Press spacebar to pause and continue. Press esc to stop.