Macquarie Infrastructure Company LLC Reports Third Quarter 2011 Financial Results, Declares $0.20 Quarterly Dividend

NEW YORK--(BUSINESS WIRE)--November 2, 2011--Macquarie Infrastructure Company LLC (NYSE: MIC) reported consolidated revenue of $251.6 million for the third quarter of 2011, a 17.9% increase compared with the third quarter in 2010.

The Company reported net income from continuing operations, before tax, of $14.6 million for the third quarter of 2011 compared with $11.0 million for the third quarter of 2010. For the nine months ended September 30, 2011 MIC reported net income before tax of $28.1 million compared with a net loss of $8.6 million for the comparable period in 2010.

The MIC Board has approved a cash dividend of $0.20 per share for the quarter ended September 30, 2011. The dividend will be payable on November 17, 2011 to shareholders of record on November 14, 2011.

“We are on pace to achieve year-on-year growth in proportionately combined free cash flow from core operations of more than 12%,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC. “The performance of our operating companies in the third quarter was in line with our expectations and produced proportionately combined free cash flow through nine months that is ahead of our guidance.”

Proportionately combined free cash flow generated in the third quarter of 2011 was $36.4 million, or $0.79 per share, compared with $43.0 million, or $0.94 per share, in the third quarter of 2010. The decrease reflects the contribution in 2010 from a unit of MIC’s bulk liquid storage terminal business that was involved in the Gulf of Mexico oil spill clean-up. Excluding the contribution from this unit, proportionately combined free cash flow would have increased by approximately 12.9%.

MIC regards free cash flow as an important tool in assessing the performance of its capital intensive, cash generative businesses. MIC defines free cash flow as cash from operating activities, less maintenance capital expenditures and changes in working capital.

The following table reflects results of continuing operations for MIC’s businesses for the quarter and year to date periods ended September 30, 2011 and 2010 on a proportionately combined basis. Proportionately combined free cash flow includes the cash generated at MIC’s wholly-owned subsidiaries as well as its 50% interest in the free cash flow generated by IMTT and 50.01% controlling interest in the free cash flow generated by District Energy, all offset by MIC corporate level expenses.

Proportionately combined free cash flow does not fully reflect MIC’s ability to freely deploy generated cash, as it does not reflect required principal payments on indebtedness and other fixed obligations, or dividends, among other items. 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 the attached tables for a reconciliation of consolidated net income attributable to MIC LLC to consolidated EBITDA excluding non-cash items and cash from operating activities to free cash flow.

	For the Quarter Ended September 30, 2011
($ in Thousands) (Unaudited)	IMTT 50%	The Gas Company	District Energy 50.01%	Atlantic Aviation	MIC Corporate	Proportionately Combined⁽¹⁾	IMTT 100%	District Energy 100%


Gross profit	30,496	15,680	3,393	76,571	N/A	126,140	60,992	6,785
EBITDA excluding non-cash items	26,542	12,072	4,494	32,608	(2,035)	73,681	53,083	8,987
Free cash flow	12,099	6,881	2,898	16,178	(1,696)	36,359	24,197	5,794

	For the Quarter Ended September 30, 2010
	IMTT 50%	The Gas Company	District Energy 50.01%	Atlantic Aviation	MIC Corporate	Proportionately Combined⁽¹⁾	IMTT 100%	District Energy 100%

Gross profit	40,587	14,726	3,415	73,808	N/A	132,536	81,174	6,829
EBITDA excluding non-cash items	35,095	11,002	4,585	30,887	(4,785)	76,784	70,190	9,169
Free cash flow	22,273	9,257	3,581	13,831	(5,928)	43,013	44,545	7,160

Gross profit variance	(24.9)%	6.5%	(0.6)%	3.7%	N/A	(4.8)%	(24.9)%	(0.6)%
EBITDA excluding non-cash items variance	(24.4)%	9.7%	(2.0)%	5.6%	57.5%	(4.0)%	(24.4)%	(2.0)%
Free cash flow variance	(45.7)%	(25.7)%	(19.1)%	17.0%	71.4%	(15.5)%	(45.7)%	(19.1)%
_____________________
(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, 2011
($ in Thousands) (Unaudited)	IMTT 50%	The Gas Company	District Energy 50.01%	Atlantic Aviation	MIC Corporate	Proportionately Combined⁽¹⁾	IMTT 100%	District Energy 100%

Gross profit	87,930	46,204	7,115	224,630	N/A	365,879	175,860	14,228
EBITDA excluding non-cash items	76,764	35,241	9,038	93,846	(5,224)	209,665	153,528	18,073
Free cash flow	39,736	18,224	5,767	45,893	(2,036)	107,584	79,471	11,532


	For the Nine Months Ended September 30, 2010
	IMTT 50%	The Gas Company	District Energy 50.01%	Atlantic Aviation	MIC Corporate	Proportionately Combined⁽¹⁾	IMTT 100%	District Energy 100%

Gross profit	107,215	42,899	7,265	218,064	N/A	375,443	214,430	14,528
EBITDA excluding non-cash items	92,845	31,931	9,345	88,411	(10,071)	212,460	185,689	18,686
Free cash flow	60,823	22,171	6,364	38,293	(9,664)	117,987	121,645	12,726

Gross profit variance	(18.0)%	7.7%	(2.1)%	3.0%	N/A	(2.5)%	(18.0)%	(2.1)%
EBITDA excluding non-cash items variance	(17.3)%	10.4%	(3.3)%	6.1%	48.1%	(1.3)%	(17.3)%	(3.3)%
Free cash flow variance	(34.7)%	(17.8)%	(9.4)%	19.8%	78.9%	(8.8)%	(34.7)%	(9.4)%
_____________________
(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.

Maintenance capital expenditures incurred during the first nine months of 2011 increased to $30.2 million compared with $21.0 million for the comparable period in 2010. As the Company has previously noted, these expenditures were accelerated in order to take advantage of the 100% tax depreciation of capital projects provided for under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

MIC has a 50% equity interest in International-Matex Tank Terminals (IMTT), the operator of one of the largest independent bulk liquid storage terminal businesses in the US. IMTT owns and operates 10 marine storage terminals in the US 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 table and discussion below refers to results for 100% of the business, not MIC’s 50% interest.

IMTT’s free cash flow for the third quarter declined to $24.2 million in 2011 from $44.5 million in 2010 primarily as a result of the reduced contribution from the environmental response unit and an increase in maintenance capital expenditures and repairs and maintenance expenses. The decline was partially offset by increased terminal gross profit.

MIC has been unable to resolve a previously-disclosed dispute with the co-owner of IMTT regarding distributions, despite efforts to do so in accordance with a Shareholders’ Agreement between the parties. Accordingly, on April 18, 2011, MIC initiated formal arbitration proceedings with the Voting Trust of IMTT Holdings Inc. (“Voting Trust”) and IMTT Holdings Inc. under the auspices of the American Arbitration Association, as provided under the Shareholders’ Agreement. MIC believes the Voting Trust’s defenses and claims in the arbitration are without merit. The arbitration process is expected to be completed in the first quarter of 2012.

Assuming the arbitration is resolved in its favor, and subject to favorable economic conditions, the Company intends to increase the cash dividend paid to shareholders by approximately $0.70 per share, per year. Any increase further assumes the continued stable performance of MIC’s operating businesses and remains subject to authorization by the MIC board.

The Gas Company is the owner and operator of the only regulated (“utility”) gas manufacturing 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.

The Gas Company generated $6.9 million of free cash flow in the third quarter of 2011. Free cash flow declined 25.7% versus the comparable period in 2010 primarily as a result of a higher provision for income taxes and expected increases in maintenance capital expenditures partially offset by improved operating results. The Gas Company is a member of MIC’s consolidated tax group and the increased federal income tax liability is expected to be wholly offset by net operating loss carryforwards at the MIC level.

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 unit that supplies both cooling and heating services to three customers in Las Vegas, Nevada. To aid in meaningful analysis of the performance of District Energy across periods, the table and discussion below refers to results for 100% of the business, not MIC’s 50.01% (controlling) interest.

Free cash flow from District Energy decreased 19.1% to $5.8 million in the third quarter of 2011 compared with the third quarter of 2010. The decrease reflects primarily a higher provision for income taxes.

Atlantic Aviation owns and operates a network of fixed-base operations (FBOs) that primarily provide fuel, terminal services and aircraft hangar services to owners and operators of general aviation (GA) aircraft at 66 airports in the US. The network is the largest of its type in the US air transportation industry.

During the third quarter of 2011 Atlantic Aviation completed the acquisitions of FBOs in Portland and Eugene, Oregon. The acquisitions were funded using proceeds from the sale of smaller, non-core FBOs earlier in the year. In addition to expanding Atlantic Aviation’s network into the Pacific Northwest, the acquisitions are expected to produce a net increase in EBITDA generated by the business.

Atlantic’s leverage is expected to fall below 6.0 times adjusted EBITDA (trailing) by year-end. Under the terms of its loan agreement, the business will distribute 50% of the free cash flow it generates so long as leverage remains below 6.0 times. Commencing with the fourth quarter of 2012, absent a refinancing or other modification of the loan agreement, Atlantic will again sweep all excess cash to prepayment of debt principal.

Free cash flow generated by Atlantic Aviation during the third quarter of 2011 increased 17.0% to $16.2 million from $13.8 million in the third quarter of 2010 on improved operating results. The improvement in operations more than offset a $1.7 million increase in maintenance capital expenditures year to date.

MIC reiterated its guidance of $3.00 per share in proportionately combined free cash flow for the full year. Through nine months ended September 30, 2011 MIC generated $2.34 per share in proportionately combined free cash flow.

MIC also reiterated its guidance regarding an expected increase in maintenance capital expenditures. The Company expects that full year 2011 maintenance capital expenditures will increase by approximately $0.26 per share compared with 2010. Through September, the increased expenditures totaled approximately $0.20 per share. The increase reflects planned expenditures that will take advantage of the 100% tax depreciation provided for in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, November 3, 2011 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.

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 3, 2011 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 3, 2011 through November 18, 2011, at +1(404) 537-3406, Passcode: 18179993. An online archive of the webcast will be available on the Company’s website for one year following the call. MIC-G

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 production and distribution business in Hawaii, The Gas Company, and 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 aviation-related 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.

This filing 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,
	2011			2010 ⁽¹⁾
ASSETS		(Unaudited)
Current assets:
Cash and cash equivalents	$	21,817		$	24,563
Accounts receivable, less allowance for doubtful accounts of $664 and $613, respectively		59,516			47,845
Inventories		18,836			17,063
Prepaid expenses		5,480			6,321
Deferred income taxes		18,530			19,030
Other		16,152			10,605
Total current assets		140,331			125,427
Property, equipment, land and leasehold improvements, net		556,914			563,451
Equipment lease receivables		33,130			35,663
Investment in unconsolidated business		229,679			223,792
Goodwill		516,094			514,253
Intangible assets, net		670,472			705,862
Other		25,225			28,294
Total assets	$	2,171,845		$	2,196,742

LIABILITIES AND MEMBERS' EQUITY
Current liabilities:
Due to manager - related party	$	3,535		$	3,282
Accounts payable		30,768			36,036
Accrued expenses		25,435			23,047
Current portion of long-term debt		43,048			49,325
Fair value of derivative instruments		42,260			43,496
Other		16,541			16,100
Total current liabilities		161,587			171,286
Long-term debt, net of current portion		1,079,101			1,089,559
Deferred income taxes		168,584			156,328
Fair value of derivative instruments		26,072			51,729
Other		40,342			41,145
Total liabilities		1,475,686			1,510,047
Commitments and contingencies		-			-
Members’ equity:
LLC interests, no par value; 500,000,000 authorized; 46,207,881 LLC interests issued and outstanding at September 30, 2011 and 45,715,448 LLC interests issued and outstanding at December 31, 2010		957,506			964,430
Additional paid in capital		21,956			21,956
Accumulated other comprehensive loss		(21,677	)		(25,812	)
Accumulated deficit		(254,374	)		(269,425	)
Total members’ equity		703,411			691,149
Noncontrolling interests		(7,252	)		(4,454	)
Total equity		696,159			686,695
Total liabilities and equity	$	2,171,845		$	2,196,742

(1) Reclassified to conform to current period presentation.

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, 2011			September 30, 2010			September 30, 2011			September 30, 2010


Revenue
Revenue from product sales	$	159,834		$	129,217		$	474,480		$	374,412
Revenue from product sales - utility		35,088			28,232			105,782			83,517
Service revenue		55,420			54,598			154,590			157,598
Financing and equipment lease income		1,236			1,251			3,784			3,767
Total revenue		251,578			213,298			738,636			619,294
Costs and expenses
Cost of product sales		107,475			78,843			326,026			235,784
Cost of product sales - utility		29,205			22,467			86,842			66,931
Cost of services		15,860			16,625			40,704			41,088
Selling, general and administrative		50,706			50,486			150,685			150,742
Fees to manager - related party		3,465			2,380			11,253			6,837
Depreciation		10,072			6,973			25,905			21,897
Amortization of intangibles		8,637			8,743			33,400			26,154
Loss on disposal of assets		518			-			1,743			-
Total operating expenses		225,938			186,517			676,558			549,433
Operating income		25,640			26,781			62,078			69,861
Other income (expense)
Interest income		3			2			104			22
Interest expense⁽¹⁾		(14,638	)		(24,844	)		(48,973	)		(98,505	)
Equity in earnings and amortization charges of investee		2,436			7,804			14,068			19,171
Other income, net		1,200			1,269			805			821
Net income (loss) from continuing operations before income taxes		14,641			11,012			28,082			(8,630	)
(Provision) benefit for income taxes		(5,137	)		(2,036	)		(11,635	)		12,541
Net income from continuing operations	$	9,504		$	8,976		$	16,447		$	3,911
Net income from discontinued operations, net of taxes		-			-			-			81,199
Net income	$	9,504		$	8,976		$	16,447		$	85,110
Less: net income (loss) attributable to noncontrolling interests		3,128			34			1,396			(1,317	)
Net income attributable to MIC LLC	$	6,376		$	8,942		$	15,051		$	86,427
Basic income per share from continuing operations attributable to MIC LLC interest holders	$	0.14		$	0.20		$	0.33		$	0.12
Basic income per share from discontinued operations attributable to MIC LLC interest holders		-			-			-			1.78
Basic income per share attributable to MIC LLC interest holders	$	0.14		$	0.20		$	0.33		$	1.90
Weighted average number of shares outstanding: basic		46,088,783			45,715,448			45,908,258			45,493,982
Diluted income per share from continuing operations attributable to MIC LLC interest holders	$	0.14		$	0.20		$	0.33		$	0.12
Diluted income per share from discontinued operations attributable to MIC LLC interest holders		-			-			-			1.78
Diluted income per share attributable to MIC LLC interest holders	$	0.14		$	0.20		$	0.33		$	1.90
Weighted average number of shares outstanding: diluted		46,106,708			45,747,437			45,934,013			45,592,577
Cash distributions declared per share	$	0.20		$	-		$	0.60		$	-

MACQUARIE INFRASTRUCTURE COMPANY LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ In Thousands)

	Nine Months Ended
	September 30, 2011			September 30, 2010

Operating activities
Net income	$	16,447		$	85,110
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Net income from discontinued operations before noncontrolling interests		-			(81,199	)
Depreciation and amortization of property and equipment		30,874			26,807
Amortization of intangible assets		33,400			26,154
Loss on disposal of assets		949			-
Equity in earnings and amortization charges of investees		(14,068	)		(19,171	)
Equity distributions from investees		-			15,000
Amortization of debt financing costs		3,074			3,299
Non-cash derivative (gains) losses		(9,573	)		35,497
Base management fees settled in LLC interests		11,253			2,189
Equipment lease receivable, net		2,271			2,202
Deferred rent		272			217
Deferred taxes		8,680			(13,685	)
Other non-cash expenses, net		2,305			2,908
Changes in other assets and liabilities:
Accounts receivable		(11,380	)		(5,254	)
Inventories		(791	)		(895	)
Prepaid expenses and other current assets		(3,450	)		878
Due to manager - related party		1			2,383
Accounts payable and accrued expenses		(1,455	)		(221	)
Income taxes payable		548			(1,281	)
Other, net		(2,192	)		(956	)
Net cash provided by operating activities from continuing operations		67,165			79,982

Investing activities
Acquisitions of businesses and investments, net of cash acquired		(23,068	)		-
Proceeds from sale of assets		16,999			-
Purchases of property and equipment		(23,496	)		(12,462	)
Investment in capital leased assets		(24	)		(2,400	)
Other		52			630
Net cash used in investing activities from continuing operations		(29,537	)		(14,232	)

Financing activities
Proceeds from long-term debt		13,406			-
Proceeds on line of credit facilities		4,400			-
Dividends paid to holders of LLC interests		(18,376	)		-
Contributions received from noncontrolling interests		-			300
Distributions paid to noncontrolling interests		(5,123	)		(1,935	)
Payment of long-term debt		(34,570	)		(56,336	)
Debt financing costs paid		(4	)		(186	)
Change in restricted cash		-			2,236
Payment of notes and capital lease obligations		(107	)		(102	)
Net cash used in financing activities from continuing operations		(40,374	)		(56,023	)
Net change in cash and cash equivalents from continuing operations		(2,746	)		9,727

MACQUARIE INFRASTRUCTURE COMPANY LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS- (continued)
(Unaudited)
($ In Thousands)

	Nine Months Ended
	September 30, 2011			September 30, 2010

Cash flows (used in) provided by discontinued operations:
Net cash used in operating activities	$	-		$	(12,703	)
Net cash provided by investing activities		-			134,356
Net cash used in financing activities		-			(124,183	)
Cash used in discontinued operations⁽¹⁾		-			(2,530	)
Change in cash of discontinued operations held for sale⁽¹⁾		-			2,385
Net change in cash and cash equivalents		(2,746	)		9,582
Cash and cash equivalents, beginning of period		24,563			27,455
Cash and cash equivalents, end of period - continuing operations	$	21,817		$	37,037

Supplemental disclosures of cash flow information for continuing operations:
Non-cash investing and financing activities:
Accrued purchases of property and equipment	$	859		$	1,208
Issuance of LLC interests to manager for base management fees	$	11,002		$	4,083
Issuance of LLC interests to independent directors	$	450		$	450
Taxes paid	$	2,382		$	2,059
Interest paid	$	55,178		$	59,737

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS


	Quarter Ended						Change					Nine Months Ended						Change
	September 30,						Favorable/(Unfavorable)					September 30,						Favorable/(Unfavorable)
	2011			2010			$			%		2011			2010			$			%
	($ In Thousands) (Unaudited)
Revenue
Revenue from product sales	$	159,834		$	129,217			30,617		23.7		$	474,480		$	374,412			100,068		26.7
Revenue from product sales - utility		35,088			28,232			6,856		24.3			105,782			83,517			22,265		26.7
Service revenue		55,420			54,598			822		1.5			154,590			157,598			(3,008	)	(1.9	)
Financing and equipment lease income		1,236			1,251			(15	)	(1.2	)		3,784			3,767			17		0.5
Total revenue		251,578			213,298			38,280		17.9			738,636			619,294			119,342		19.3
Costs and expenses
Cost of product sales		107,475			78,843			(28,632	)	(36.3	)		326,026			235,784			(90,242	)	(38.3	)
Cost of product sales - utility		29,205			22,467			(6,738	)	(30.0	)		86,842			66,931			(19,911	)	(29.7	)
Cost of services		15,860			16,625			765		4.6			40,704			41,088			384		0.9
Gross profit		99,038			95,363			3,675		3.9			285,064			275,491			9,573		3.5
Selling, general and administrative		50,706			50,486			(220	)	(0.4	)		150,685			150,742			57		-
Fees to manager - related party		3,465			2,380			(1,085	)	(45.6	)		11,253			6,837			(4,416	)	(64.6	)
Depreciation		10,072			6,973			(3,099	)	(44.4	)		25,905			21,897			(4,008	)	(18.3	)
Amortization of intangibles		8,637			8,743			106		1.2			33,400			26,154			(7,246	)	(27.7	)
Loss on disposal of assets		518			-			(518	)	NM			1,743			-			(1,743	)	NM
Total operating expenses		73,398			68,582			(4,816	)	(7.0	)		222,986			205,630			(17,356	)	(8.4	)
Operating income		25,640			26,781			(1,141	)	(4.3	)		62,078			69,861			(7,783	)	(11.1	)
Other income (expense)
Interest income		3			2			1		50.0			104			22			82		NM
Interest expense⁽¹⁾		(14,638	)		(24,844	)		10,206		41.1			(48,973	)		(98,505	)		49,532		50.3
Equity in earnings and amortization charges of investees		2,436			7,804			(5,368	)	(68.8	)		14,068			19,171			(5,103	)	(26.6	)
Other income, net		1,200			1,269			(69	)	(5.4	)		805			821			(16	)	(1.9	)
Net income (loss) from continuing operations before income taxes		14,641			11,012			3,629		33.0			28,082			(8,630	)		36,712		NM
(Provision) benefit for income taxes		(5,137	)		(2,036	)		(3,101	)	(152.3	)		(11,635	)		12,541			(24,176	)	(192.8	)
Net income from continuing operations	$	9,504		$	8,976			528		5.9		$	16,447		$	3,911			12,536		NM
Net income from discontinued operations, net of taxes		-			-			-		-			-			81,199			(81,199	)	(100.0	)
Net income	$	9,504		$	8,976			528		5.9		$	16,447		$	85,110			(68,663	)	(80.7	)
Less: net income (loss) attributable to noncontrolling interests		3,128			34			(3,094	)	NM			1,396			(1,317	)		(2,713	)	NM
Net income attributable to MIC LLC	$	6,376		$	8,942			(2,566	)	(28.7	)	$	15,051		$	86,427			(71,376	)	(82.6	)

MACQUARIE INFRASTRUCTURE COMPANY LLC RECONCILIATION OF CONSOLIDATED NET INCOME FROM CONTINUING OPERATIONS 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)
	2011			2010			$		%		2011			2010			$		%
	($ In Thousands) (Unaudited)

Net income attributable to MIC LLC from continuing operations⁽¹⁾	$	6,376		$	8,942						$	15,051		$	5,364
Interest expense, net⁽²⁾		14,635			24,842							48,869			98,483
Provision (benefit) for income taxes		5,137			2,036							11,635			(12,541	)
Depreciation⁽³⁾		10,072			6,973							25,905			21,897
Depreciation - cost of services⁽³⁾		1,664			1,639							4,969			4,910
Amortization of intangibles⁽⁴⁾		8,637			8,743							33,400			26,154
(Gain) loss on disposal of assets		(204	)		-							949			-
Equity in (earnings) losses and amortization charges of investees⁽⁵⁾		(2,436	)		2,196							(14,068	)		(4,171	)
Base management fees settled/to be settled in LLC interests		3,465			-							11,253			2,189
Other non-cash expense, net		4,286			902							3,973			1,672
EBITDA excluding non-cash items from continuing operations	$	51,632		$	56,273		(4,641	)	(8.2	)	$	141,936		$	143,957		(2,021	)	(1.4	)

EBITDA excluding non-cash items from continuing operations	$	51,632		$	56,273						$	141,936		$	143,957
Interest expense, net⁽²⁾		(14,635	)		(24,842	)						(48,869	)		(98,483	)
Interest rate swap breakage fees⁽²⁾		(515	)		(1,484	)						(2,247	)		(4,689	)
Non-cash derivative (gains) losses recorded in interest expense⁽²⁾		(4,093	)		5,307							(7,326	)		40,186
Amortization of debt financing costs⁽²⁾		1,014			1,043							3,074			3,299
Equipment lease receivables, net		778			751							2,271			2,202
Provision/benefit for income taxes, net of changes in deferred taxes		(1,827	)		325							(2,955	)		(1,144	)
Changes in working capital		(6,476	)		963							(18,719	)		(5,346	)
Cash provided by operating activities		25,878			38,336							67,165			79,982
Changes in working capital		6,476			(963	)						18,719			5,346
Maintenance capital expenditures		(5,197	)		(3,053	)						(12,271	)		(6,802	)
Free cash flow from continuing operations	$	27,157		$	34,320		(7,163	)	(20.9	)	$	73,613		$	78,526		(4,913	)	(6.3	)

(1)		Net income attributable to MIC LLC from continuing operations excludes 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, and net income attributable to noncontrolling interests of $34,000 and net loss attributable to noncontrolling interests of $1.453 million for the quarter and nine months ended September 30, 2010, respectively.
(2)		Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
(3)		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 step-up depreciation expense of $2.0 million and $5.5 million for the quarter and nine months ended September 30, 2011, respectively, and $1.7 million and $5.2 million for the quarter and nine months ended September 30, 2010, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations.
(4)		Amortization of intangibles does not include acquisition-related step-up amortization expense of $85,000 and $520,000 for the quarter and nine months ended September 30, 2011, respectively, and $283,000 and $850,000 for the quarter and nine months ended September 30, 2010, respectively, in connection with our investment in IMTT, which is reported in equity in earnings and amortization charges of investees in our consolidated condensed statements of operations.
(5)		Equity in earnings and amortization charges of investees in the above table includes our 50% share of IMTT's earnings, offset by distributions we received only up to our share of the earnings recorded.

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
		2011		2010		Favorable/(Unfavorable)				2011		2010		Favorable/(Unfavorable)
		$		$		$		%		$		$		$		%
	($ In Thousands) (Unaudited)
Revenue
Terminal revenue		102,794		91,825		10,969		11.9		310,245		278,122		32,123		11.5
Environmental response revenue		11,775		90,377		(78,602	)	(87.0	)	22,105		169,353		(147,248	)	(86.9	)
Total revenue		114,569		182,202		(67,633	)	(37.1	)	332,350		447,475		(115,125	)	(25.7	)
Costs and expenses
Terminal operating costs		46,289		42,300		(3,989	)	(9.4	)	140,459		124,846		(15,613	)	(12.5	)
Environmental response operating costs		7,288		58,728		51,440		87.6		16,031		108,199		92,168		85.2
Total operating costs		53,577		101,028		47,451		47.0		156,490		233,045		76,555		32.8
Terminal gross profit		56,505		49,525		6,980		14.1		169,786		153,276		16,510		10.8
Environmental response gross profit		4,487		31,649		(27,162	)	(85.8	)	6,074		61,154		(55,080	)	(90.1	)
Gross profit		60,992		81,174		(20,182	)	(24.9	)	175,860		214,430		(38,570	)	(18.0	)
General and administrative expenses		7,995		10,839		2,844		26.2		23,575		29,802		6,227		20.9
Depreciation and amortization		16,052		16,602		550		3.3		48,087		46,136		(1,951	)	(4.2	)
Operating income		36,945		53,733		(16,788	)	(31.2	)	104,198		138,492		(34,294	)	(24.8	)
Interest expense, net⁽¹⁾		(24,319	)	(20,586	)	(3,733	)	(18.1	)	(45,313	)	(58,485	)	13,172		22.5
Other income		94		220		(126	)	(57.3	)	1,214		1,581		(367	)	(23.2	)
Provision for income taxes		(5,537	)	(15,546	)	10,009		64.4		(24,984	)	(35,902	)	10,918		30.4
Noncontrolling interest		94		153		(59	)	(38.6	)	185		(247	)	432		174.9
Net income		7,277		17,974		(10,697	)	(59.5	)	35,300		45,439		(10,139	)	(22.3	)

Reconciliation of net income to EBITDA excluding non-cash items:
Net income		7,277		17,974						35,300		45,439
Interest expense, net⁽¹⁾		24,319		20,586						45,313		58,485
Provision for income taxes		5,537		15,546						24,984		35,902
Depreciation and amortization		16,052		16,602						48,087		46,136
Other non-cash income		(102	)	(518	)					(156	)	(273	)
EBITDA excluding non-cash items		53,083		70,190		(17,107	)	(24.4	)	153,528		185,689		(32,161	)	(17.3	)

EBITDA excluding non-cash items		53,083		70,190						153,528		185,689
Interest expense, net⁽¹⁾		(24,319	)	(20,586	)					(45,313	)	(58,485	)
Non-cash derivative losses recorded in interest expense⁽¹⁾		15,345		11,041						18,653		33,094
Amortization of debt financing costs⁽¹⁾		808		618						2,426		1,328
Provision for income taxes, net of changes in deferred
taxes		(6,181	)	(6,580	)					(13,765	)	(10,812	)
Changes in working capital		(17,621	)	7,761						(30,468	)	(19,693	)
Cash provided by operating activities		21,115		62,444						85,061		131,121
Changes in working capital		17,621		(7,761	)					30,468		19,693
Maintenance capital expenditures		(14,539	)	(10,138	)					(36,058	)	(29,169	)
Free cash flow		24,197		44,545		(20,348	)	(45.7	)	79,471		121,645		(42,174	)	(34.7	)

(1) Interest expense, net, includes non-cash losses on derivative instruments and non-cash amortization of deferred financing fees.

The Gas Company

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2011		2010		Change Favorable/(Unfavorable)				2011		2010		Change Favorable/(Unfavorable)
		$		$		$		%		$		$		$		%
	($ In Thousands) (Unaudited)
Contribution margin
Revenue - utility		35,088		28,232		6,856		24.3		105,782		83,517		22,265		26.7
Cost of revenue - utility		25,547		18,904		(6,643	)	(35.1	)	76,758		56,178		(20,580	)	(36.6	)
Contribution margin - utility		9,541		9,328		213		2.3		29,024		27,339		1,685		6.2
Revenue - non-utility		28,056		23,214		4,842		20.9		82,342		72,760		9,582		13.2
Cost of revenue - non-utility		15,041		11,179		(3,862	)	(34.5	)	45,413		37,024		(8,389	)	(22.7	)
Contribution margin - non-utility		13,015		12,035		980		8.1		36,929		35,736		1,193		3.3
Total contribution margin		22,556		21,363		1,193		5.6		65,953		63,075		2,878		4.6
Production		1,867		1,718		(149	)	(8.7	)	5,321		5,126		(195	)	(3.8	)
Transmission and distribution		5,009		4,919		(90	)	(1.8	)	14,428		15,050		622		4.1
Gross profit		15,680		14,726		954		6.5		46,204		42,899		3,305		7.7
Selling, general and administrative expenses		4,414		4,259		(155	)	(3.6	)	12,672		12,557		(115	)	(0.9	)
Depreciation and amortization		1,843		1,492		(351	)	(23.5	)	5,418		4,926		(492	)	(10.0	)
Operating income		9,423		8,975		448		5.0		28,114		25,416		2,698		10.6
Interest expense, net⁽¹⁾		(2,415	)	(5,047	)	2,632		52.1		(7,912	)	(15,780	)	7,868		49.9
Other income (expense)		70		1		69		NM		(209	)	(10	)	(199	)	NM
Provision for income taxes		(2,689	)	(1,538	)	(1,151	)	(74.8	)	(7,901	)	(3,769	)	(4,132	)	(109.6	)
Net income⁽²⁾		4,389		2,391		1,998		83.6		12,092		5,857		6,235		106.5

Reconciliation of net income to EBITDA excluding non-cash items:
Net income⁽²⁾		4,389		2,391						12,092		5,857
Interest expense, net⁽¹⁾		2,415		5,047						7,912		15,780
Provision for income taxes		2,689		1,538						7,901		3,769
Depreciation and amortization		1,843		1,492						5,418		4,926
Other non-cash expenses		736		534						1,918		1,599
EBITDA excluding non-cash items		12,072		11,002		1,070		9.7		35,241		31,931		3,310		10.4

EBITDA excluding non-cash items		12,072		11,002						35,241		31,931
Interest expense, net⁽¹⁾		(2,415	)	(5,047	)					(7,912	)	(15,780	)
Non-cash derivative losses recorded in interest expense⁽¹⁾		35		2,734						932		8,945
Amortization of debt financing costs⁽¹⁾		119		120						358		359
Provision for income taxes, net of changes in deferred taxes		(562	)	1,478						(4,107	)	(1,276	)
Changes in working capital		(1,030	)	1,483						(7,479	)	(1,320	)
Cash provided by operating activities		8,219		11,770						17,033		22,859
Changes in working capital		1,030		(1,483	)					7,479		1,320
Maintenance capital expenditures		(2,368	)	(1,030	)					(6,288	)	(2,008	)
Free cash flow		6,881		9,257		(2,376	)	(25.7	)	18,224		22,171		(3,947	)	(17.8	)

District Energy

	Quarter Ended								Nine Months Ended
	September 30,								September 30,
	2011		2010		Change Favorable/(Unfavorable)				2011		2010		Change Favorable/(Unfavorable)
	$		$		$		%		$		$		$		%
	($ In Thousands) (Unaudited)

Cooling capacity revenue	5,523		5,302		221		4.2		16,282		15,835		447		2.8
Cooling consumption revenue	11,091		12,596		(1,505	)	(11.9	)	19,445		21,503		(2,058	)	(9.6	)
Other revenue	688		823		(135	)	(16.4	)	2,281		2,490		(209	)	(8.4	)
Finance lease revenue	1,236		1,251		(15	)	(1.2	)	3,784		3,767		17		0.5
Total revenue	18,538		19,972		(1,434	)	(7.2	)	41,792		43,595		(1,803	)	(4.1	)
Direct expenses — electricity	6,697		8,202		1,505		18.3		12,318		14,189		1,871		13.2
Direct expenses — other⁽¹⁾	5,056		4,941		(115	)	(2.3	)	15,246		14,878		(368	)	(2.5	)
Direct expenses — total	11,753		13,143		1,390		10.6		27,564		29,067		1,503		5.2
Gross profit	6,785		6,829		(44	)	(0.6	)	14,228		14,528		(300	)	(2.1	)
Selling, general and administrative expenses	764		793		29		3.7		2,449		2,350		(99	)	(4.2	)
Amortization of intangibles	345		345		-		-		1,023		1,023		-		-
Operating income	5,676		5,691		(15	)	(0.3	)	10,756		11,155		(399	)	(3.6	)
Interest expense, net⁽²⁾	(4,566	)	(6,862	)	2,296		33.5		(11,750	)	(20,866	)	9,116		43.7
Other income	1,201		1,427		(226	)	(15.8	)	1,312		1,536		(224	)	(14.6	)
(Provision) benefit for income taxes	(865	)	(23	)	(842	)	NM		132		3,464		(3,332	)	(96.2	)
Noncontrolling interest	(212	)	(198	)	(14	)	(7.1	)	(638	)	(590	)	(48	)	(8.1	)
Net income (loss)	1,234		35		1,199		NM		(188	)	(5,301	)	5,113		96.5

Reconciliation of net income (loss) to EBITDA excluding non- cash items:
Net income (loss)	1,234		35						(188	)	(5,301	)
Interest expense, net⁽²⁾	4,566		6,862						11,750		20,866
Provision (benefit) for income taxes	865		23						(132	)	(3,464	)
Depreciation⁽¹⁾	1,664		1,639						4,969		4,910
Amortization of intangibles	345		345						1,023		1,023
Other non-cash expenses	313		265						651		652
EBITDA excluding non-cash items	8,987		9,169		(182	)	(2.0	)	18,073		18,686		(613	)	(3.3	)

EBITDA excluding non-cash items	8,987		9,169						18,073		18,686
Interest expense, net⁽²⁾	(4,566	)	(6,862	)					(11,750	)	(20,866	)
Non-cash derivative losses recorded in interest expense⁽²⁾	1,865		4,180						3,808		13,006
Amortization of debt financing costs⁽²⁾	171		171						511		511
Equipment lease receivable, net	778		751						2,271		2,202
Provision/benefit for income taxes, net of changes in deferred taxes	(1,277	)	-						(1,092	)	-
Changes in working capital	(789	)	(92	)					(608	)	(3,661	)
Cash provided by operating activities	5,169		7,317						11,213		9,878
Changes in working capital	789		92						608		3,661
Maintenance capital expenditures	(164	)	(249	)					(289	)	(813	)
Free cash flow	5,794		7,160		(1,366	)	(19.1	)	11,532		12,726		(1,194	)	(9.4	)

Atlantic Aviation


	Quarter Ended								Nine Months Ended
	September 30,								September 30,
	2011		2010		Change Favorable/(Unfavorable)				2011		2010		Change Favorable/(Unfavorable)
	$		$		$		%		$		$		$		%
	($ In Thousands) (Unaudited)
Revenue
Fuel revenue	131,778		106,003		25,775		24.3		392,138		301,652		90,486		30.0
Non-fuel revenue	38,118		35,877		2,241		6.2		116,582		117,770		(1,188	)	(1.0	)
Total revenue	169,896		141,880		28,016		19.7		508,720		419,422		89,298		21.3
Cost of revenue
Cost of revenue-fuel	89,217		64,590		(24,627	)	(38.1	)	270,949		189,337		(81,612	)	(43.1	)
Cost of revenue-non-fuel	4,108		3,482		(626	)	(18.0	)	13,141		12,021		(1,120	)	(9.3	)
Total cost of revenue	93,325		68,072		(25,253	)	(37.1	)	284,090		201,358		(82,732	)	(41.1	)
Fuel gross profit	42,561		41,413		1,148		2.8		121,189		112,315		8,874		7.9
Non-fuel gross profit	34,010		32,395		1,615		5.0		103,441		105,749		(2,308	)	(2.2	)
Gross profit	76,571		73,808		2,763		3.7		224,630		218,064		6,566		3.0
Selling, general and administrative expenses	43,430		42,969		(461	)	(1.1	)	130,105		129,762		(343	)	(0.3	)
Depreciation and amortization	16,521		13,879		(2,642	)	(19.0	)	52,864		42,102		(10,762	)	(25.6	)
Loss on disposal of assets	518		-		(518	)	NM		1,743		-		(1,743	)	NM
Operating income	16,102		16,960		(858	)	(5.1	)	39,918		46,200		(6,282	)	(13.6	)
Interest expense, net⁽¹⁾	(7,655	)	(12,938	)	5,283		40.8		(29,209	)	(61,612	)	32,403		52.6
Other expense	(18	)	(101	)	83		82.2		(195	)	(645	)	450		69.8
(Provision) benefit for income taxes	(3,396	)	(1,580	)	(1,816	)	(114.9	)	(4,236	)	6,471		(10,707	)	(165.5	)
Net income (loss)⁽²⁾	5,033		2,341		2,692		115.0		6,278		(9,586	)	15,864		165.5

Reconciliation of net income (loss) to EBITDA excluding non-cash items:
Net income (loss)⁽²⁾	5,033		2,341						6,278		(9,586	)
Interest expense, net⁽¹⁾	7,655		12,938						29,209		61,612
Provision (benefit) for income taxes	3,396		1,580						4,236		(6,471	)
Depreciation and amortization	16,521		13,879						52,864		42,102
(Gain) loss on disposal of assets	(204	)	-						949		-
Other non-cash expenses	207		149						310		754
EBITDA excluding non-cash items	32,608		30,887		1,721		5.6		93,846		88,411		5,435		6.1

EBITDA excluding non-cash items	32,608		30,887						93,846		88,411
Interest expense, net⁽¹⁾	(7,655	)	(12,938	)					(29,209	)	(61,612	)
Interest rate swap breakage fees⁽¹⁾	(515	)	(1,484	)					(2,247	)	(4,689	)
Non-cash derivative (gains) losses recorded in interest expense⁽¹⁾	(5,993	)	(1,602	)					(12,066	)	18,237
Amortization of debt financing costs⁽¹⁾	724		753						2,205		2,225
Provision/benefit for income taxes, net of changes in deferred taxes	(326	)	(11	)					(942	)	(298	)
Changes in working capital	(4,620	)	(2,526	)					(7,482	)	136
Cash provided by operating activities	14,223		13,079						44,105		42,410
Changes in working capital	4,620		2,526						7,482		(136	)
Maintenance capital expenditures	(2,665	)	(1,774	)					(5,694	)	(3,981	)
Free cash flow	16,178		13,831		2,347		17.0		45,893		38,293		7,600		19.8

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, 2011
($ in Thousands) (Unaudited)	IMTT 50%		The Gas Company		District Energy 50.01%		Atlantic Aviation		MIC Corporate		Proportionately Combined⁽¹⁾		IMTT 100%		District Energy 100%

Net income (loss) attributable to MIC LLC from continuing operations	3,639		4,389		617		5,033		(6,716	)	6,962		7,277		1,234
Interest expense (income), net⁽²⁾	12,160		2,415		2,283		7,655		(1	)	24,512		24,319		4,566
Provision (benefit) for income taxes	2,769		2,689		433		3,396		(1,813	)	7,473		5,537		865
Depreciation	7,670		1,638		832		8,434		-		18,574		15,339		1,664
Amortization of intangibles	357		205		173		8,087		-		8,821		713		345
Gain on sale of assets	-		-		-		(204	)	-		(204	)	-		-
Base management fee paid in LLC interests	-		-		-		-		3,465		3,465		-		-
Other non-cash (income) expense	(51	)	736		157		207		3,030		4,079		(102	)	313
EBITDA excluding non-cash items	26,542		12,072		4,494		32,608		(2,035	)	73,681		53,083		8,987

EBITDA excluding non-cash items	26,542		12,072		4,494		32,608		(2,035	)	73,681		53,083		8,987
Interest (expense) income, net⁽²⁾	(12,160	)	(2,415	)	(2,283	)	(7,655	)	1		(24,512	)	(24,319	)	(4,566	)
Interest rate swap breakage fees⁽²⁾	-		-		-		(515	)	-		(515	)	-		-
Non-cash derivative losses (gains) recorded in interest expense, net⁽²⁾	7,673		35		933		(5,993	)	-		2,647		15,345		1,865
Amortization of deferred finance charges⁽²⁾	404		119		86		724		-		1,333		808		171
Equipment lease receivables, net	-		-		389		-		-		389		-		778
Provision/benefit for income taxes, net of changes in deferred taxes	(3,091	)	(562	)	(639	)	(326	)	338		(4,279	)	(6,181	)	(1,277	)
Changes in working capital	(8,811	)	(1,030	)	(395	)	(4,620	)	(37	)	(14,892	)	(17,621	)	(789	)
Cash provided by (used in) operating activities	10,558		8,219		2,585		14,223		(1,733	)	33,852		21,115		5,169
Changes in working capital	8,811		1,030		395		4,620		37		14,892		17,621		789
Maintenance capital expenditures	(7,270	)	(2,368	)	(82	)	(2,665	)	-		(12,385	)	(14,539	)	(164	)

Free cash flow	12,099		6,881		2,898		16,178		(1,696	)	36,359		24,197		5,794


	For the Quarter Ended September 30, 2010
($ in Thousands) (Unaudited)	IMTT 50%		The Gas Company		District Energy 50.01%		Atlantic Aviation		MIC Corporate		Proportionately Combined⁽¹⁾		IMTT 100%		District Energy 100%

Net income (loss) attributable to MIC LLC from continuing operations	8,987		2,391		18		2,341		(3,629	)	10,107		17,974		35
Interest expense (income), net⁽²⁾	10,293		5,047		3,432		12,938		(5	)	31,705		20,586		6,862
Provision (benefit) for income taxes	7,773		1,538		11		1,580		(1,105	)	9,798		15,546		23
Depreciation	8,083		1,286		820		5,687		-		15,876		16,166		1,639
Amortization of intangibles	218		206		173		8,192		-		8,789		436		345
Other non-cash (income) expense	(259	)	534		133		149		(46	)	511		(518	)	265
EBITDA excluding non-cash items	35,095		11,002		4,585		30,887		(4,785	)	76,784		70,190		9,169

EBITDA excluding non-cash items	35,095		11,002		4,585		30,887		(4,785	)	76,784		70,190		9,169
Interest (expense) income, net⁽²⁾	(10,293	)	(5,047	)	(3,432	)	(12,938	)	5		(31,705	)	(20,586	)	(6,862	)
Interest rate swap breakage fees⁽²⁾	-		-		-		(1,484	)	-		(1,484	)	-		-
Non-cash derivative losses (gains) recorded in interest expense, net⁽²⁾	5,521		2,734		2,090		(1,602	)	(5	)	8,738		11,041		4,180
Amortization of deferred finance charges⁽²⁾	309		120		86		753		(1	)	1,267		618		171
Equipment lease receivables, net	-		-		376		-		-		376		-		751
Provision/benefit for income taxes, net of changes in deferred taxes	(3,290	)	1,478		-		(11	)	(1,142	)	(2,965	)	(6,580	)	-
Changes in working capital	3,881		1,483		(46	)	(2,526	)	2,098		4,889		7,761		(92	)
Cash provided by (used in) operating activities	31,222		11,770		3,659		13,079		(3,830	)	55,900		62,444		7,317
Changes in working capital	(3,881	)	(1,483	)	46		2,526		(2,098	)	(4,889	)	(7,761	)	92
Maintenance capital expenditures	(5,069	)	(1,030	)	(125	)	(1,774	)	-		(7,998	)	(10,138	)	(249	)

Free cash flow	22,273		9,257		3,581		13,831		(5,928	)	43,013		44,545		7,160

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 Nine Months Ended September 30, 2011
($ in Thousands) (Unaudited)	IMTT 50%		The Gas Company		District Energy 50.01%		Atlantic Aviation		MIC Corporate		Proportionately Combined⁽¹⁾		IMTT 100%		District Energy 100%

Net income (loss) attributable to MIC LLC from continuing operations	17,650		12,092		(94	)	6,278		(17,199	)	18,727		35,300		(188	)
Interest expense (income), net⁽²⁾	22,657		7,912		5,876		29,209		(2	)	65,652		45,313		11,750
Provision (benefit) for income taxes	12,492		7,901		(66	)	4,236		(370	)	24,193		24,984		(132	)
Depreciation	23,157		4,801		2,485		21,104		-		51,547		46,314		4,969
Amortization of intangibles	887		617		512		31,760		-		33,775		1,773		1,023
Loss on disposal of assets	-		-		-		949		-		949		-		-
Base management fee paid in LLC interests	-		-		-		-		11,253		11,253		-		-
Other non-cash (income) expense	(78	)	1,918		326		310		1,094		3,570		(156	)	651
EBITDA excluding non-cash items	76,764		35,241		9,038		93,846		(5,224	)	209,665		153,528		18,073

EBITDA excluding non-cash items	76,764		35,241		9,038		93,846		(5,224	)	209,665		153,528		18,073
Interest (expense) income, net⁽²⁾	(22,657	)	(7,912	)	(5,876	)	(29,209	)	2		(65,652	)	(45,313	)	(11,750	)
Interest rate swap breakage fees⁽²⁾	-		-		-		(2,247	)	-		(2,247	)	-		-
Non-cash derivative losses (gains) recorded in interest expense, net⁽²⁾	9,327		932		1,904		(12,066	)	-		97		18,653		3,808
Amortization of deferred finance charges⁽²⁾	1,213		358		256		2,205		-		4,032		2,426		511
Equipment lease receivables, net	-		-		1,136		-		-		1,136		-		2,271
Provision/benefit for income taxes, net of changes in deferred taxes	(6,883	)	(4,107	)	(546	)	(942	)	3,186		(9,292	)	(13,765	)	(1,092	)
Changes in working capital	(15,234	)	(7,479	)	(304	)	(7,482	)	(3,150	)	(33,649	)	(30,468	)	(608	)
Cash provided by (used in) operating activities	42,531		17,033		5,608		44,105		(5,186	)	104,090		85,061		11,213
Changes in working capital	15,234		7,479		304		7,482		3,150		33,649		30,468		608
Maintenance capital expenditures	(18,029	)	(6,288	)	(145	)	(5,694	)	-		(30,156	)	(36,058	)	(289	)

Free cash flow	39,736		18,224		5,767		45,893		(2,036	)	107,584		79,471		11,532



	For the Nine Months Ended September 30, 2010
($ in Thousands) (Unaudited)	IMTT 50%		The Gas Company		District Energy 50.01%		Atlantic Aviation		MIC Corporate		Proportionately Combined⁽¹⁾		IMTT 100%		District Energy 100%

Net income (loss) attributable to MIC LLC from continuing operations	22,720		5,857		(2,651	)	(9,586	)	(4,777	)	11,562		45,439		(5,301	)
Interest expense, net⁽²⁾	29,243		15,780		10,435		61,612		225		117,295		58,485		20,866
Provision (benefit) for income taxes	17,951		3,769		(1,732	)	(6,471	)	(6,375	)	7,142		35,902		(3,464	)
Depreciation	22,412		4,309		2,455		17,588		-		46,764		44,823		4,910
Amortization of intangibles	657		617		512		24,514		-		26,299		1,313		1,023
Base management fee paid in LLC interests	-		-		-		-		2,189		2,189		-		-
Other non-cash (income) expense	(137	)	1,599		326		754		(1,333	)	1,210		(273	)	652
EBITDA excluding non-cash items	92,845		31,931		9,345		88,411		(10,071	)	212,460		185,689		18,686

EBITDA excluding non-cash items	92,845		31,931		9,345		88,411		(10,071	)	212,460		185,689		18,686
Interest expense, net⁽²⁾	(29,243	)	(15,780	)	(10,435	)	(61,612	)	(225	)	(117,295	)	(58,485	)	(20,866	)
Interest rate swap breakage fees⁽²⁾	-		-		-		(4,689	)	-		(4,689	)	-		-
Non-cash derivative losses (gains) recorded in interest expense, net ⁽²⁾	16,547		8,945		6,504		18,237		(2	)	50,231		33,094		13,006
Amortization of deferred finance charges⁽²⁾	664		359		256		2,225		204		3,708		1,328		511
Equipment lease receivables, net	-		-		1,101		-		-		1,101		-		2,202
Provision/benefit for income taxes, net of changes in deferred taxes	(5,406	)	(1,276	)	-		(298	)	430		(6,550	)	(10,812	)	-
Changes in working capital	(9,847	)	(1,320	)	(1,831	)	136		(501	)	(13,362	)	(19,693	)	(3,661	)
Cash provided by (used in) operating activities	65,561		22,859		4,940		42,410		(10,165	)	125,604		131,121		9,878
Changes in working capital	9,847		1,320		1,831		(136	)	501		13,362		19,693		3,661
Maintenance capital expenditures	(14,585	)	(2,008	)	(407	)	(3,981	)	-		(20,980	)	(29,169	)	(813	)

Free cash flow	60,823		22,171		6,364		38,293		(9,664	)	117,987		121,645		12,726

CONTACT:
Macquarie Infrastructure Company LLC
Investor Relations:
Jay A. Davis, 212-231-1825
jay.davis@macquarie.com
or
Media Relations:
Paula Chirhart, 212-231-1310
paula.chirhart@macquarie.com

		MACQUARIE INFRASTRUCTURE COMPANY LLC


Date:	November 3, 2011	By:	/s/ James Hooke
		Name:	James Hooke
		Title:	Chief Executive Officer

NM - Not meaningful
(1)		Interest expense includes non-cash gains on derivative instruments of $4.6 million and $9.6 million for the quarter and nine months ended September 30, 2011, respectively. For the quarter and nine months ended September 30, 2010, interest expense includes non-cash losses on derivative instruments of $3.8 million and $35.5 million, respectively.

NM - Not meaningful
(1)		Interest expense, net, includes non-cash losses on derivative instruments and non-cash amortization of deferred financing 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.

NM - Not meaningful
(1)		Includes depreciation expense of $1.7 million and $5.0 million for the quarter and nine months ended September 30, 2011, respectively, and $1.6 million and $4.9 million for the quarter and nine months ended September 30, 2010, respectively.
(2)		Interest expense, net, includes non-cash losses on derivative instruments and non-cash amortization of deferred financing fees.

(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.
(2)		Interest (expense) income, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.