Macquarie Infrastructure Company LLC Reports Third Quarter 2010 Financial Results, 45% Increase in Proportionately Combined Free Cash Flow

Macquarie Infrastructure Company LLC (NYSE:MIC) reported financial results for the third quarter of 2010 including a 45% increase in proportionately combined free cash flow over the third quarter of 2009. 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. Proportionately combined free cash flow increased to $43.0 million, or $0.94 per share, in the third quarter of 2010 from $29.7 million, or $0.66 per share, in the third quarter of 2009.

"Our operating businesses benefited from increased demand and continued improvement in operational effectiveness,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC. "The consistent performance of our energy-related businesses and the ongoing recovery in airport services has now provided us with reasonable visibility into their continued generation of excess cash.”

"On the basis of the continued strong cash generation and solid financial position of our businesses, and the improving capital markets, we foresee the potential to resume a distribution in early 2011. We believe this would be the most efficient and effective means of returning excess cash to shareholders,” added Hooke.

The precise timing and amount of any distribution will be based on the continued stable performance of the Company’s businesses, the outcome of the budgeting process currently underway and the economic conditions prevailing at the time of any authorization. Management believes that any distribution would be characterized as a dividend for tax purposes rather than as a return of capital.

MIC reported net income from continuing operations before non-controlling interests of $9.0 million and $3.9 million for the quarter and year to date periods ending September 30, 2010 compared with a net loss of $16.7 million and $90.0 million in the prior comparable periods. The improvement was attributed primarily to certain non-cash expenses, principally goodwill write-downs that were incurred in the first half of 2009 but did not recur in 2010, and improved operating results. MIC’s infrastructure businesses employ high-value tangible and intangible assets which generate depreciation and amortization that reduce GAAP net income but have no impact on the Company’s ability to generate distributable cash.

MIC’s consolidated revenue for the third quarter of 2010 increased approximately 15% to $213.3 million compared with $185.6 million in the prior comparable period. The growth was driven by increases in the volume of products sold by each of MIC’s consolidated businesses and the higher cost of those products in 2010 compared with 2009. In general, increased costs are passed through to the customers of MIC’s businesses and recovered as an element of revenue. An analysis of gross profit, or revenue less cost of goods sold, rather than revenue alone, removes the volatility in revenue associated with fluctuations in pass-through items. For the quarter and year to date periods in 2010, gross profit increased 5.9% and 3.4%, respectively, versus the same periods in 2009.

The following tables, reflecting results of continuing operations for MIC’s businesses for the quarters and year to date periods ended September 30, 2010 and 2009, have been conformed to the current period’s presentation reflecting gross profit, EBITDA excluding non-cash items and free cash flow. See the attached tables for a reconciliation of net income (loss) attributable to MIC LLC to EBITDA excluding non-cash items and cash from operating activities to free cash flow.

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 International-Matex Tank Terminals (IMTT) and 50.01% interest in the free cash flow generated by District Energy, all offset by MIC holding company 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, 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.

			For the Quarter Ended September 30, 2010
($ in Thousands) (Unaudited)			IMTT 50%		The Gas Company		District Energy 50.01% (2)		Atlantic Aviation		MIC Corporate		Proportionately Combined (3)			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
			For the Quarter Ended September 30, 2009 (1)
			IMTT 50%		The Gas Company		District Energy (2)		Atlantic Aviation		MIC Corporate		Proportionately Combined (3)			IMTT 100%
Gross profit			21,613		12,562		6,128		71,400		N/A		111,703			43,225
EBITDA excluding non-cash items			18,573		8,769		7,424		27,921		(1,423)		61,264			37,145
Free cash flow			9,341		5,421		5,387		11,112		(1,582)		29,679			18,682
Free cash flow variance			138.4%		70.8%		(33.5%)		24.5%		NM		44.9%			138.4%
NM- Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Gross profit, EBITDA excluding non-cash items and free cash flow for District Energy for the quarter ended September 30, 2009 are shown at a 100% controlling interest. Had we instead presented these metrics for District Energy for the quarter ended September 30, 2009 at our current 50.01% ownership, free cash flow would have been $2.7 million, or an increase of 32.9% from 2009 to 2010 and an increase of 59.4% in MIC's proportionately combined free cash flow from 2009 to 2010.
(3) 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, 2010
($ in Thousands) (Unaudited)			IMTT 50%		The Gas Company		District Energy 50.01% (2)		Atlantic Aviation		MIC Corporate		Proportionately Combined (3)			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
			For the Nine Months Ended September 30, 2009 (1)
			IMTT 50%		The Gas Company		District Energy (2)		Atlantic Aviation		MIC Corporate		Proportionately Combined (3)			IMTT 100%
Gross profit			63,805		38,195		13,101		215,210		N/A		330,311			127,609
EBITDA excluding non-cash items			54,211		27,447		16,037		79,830		(5,984)		171,541			108,422
Free cash flow			28,677		16,642		10,353		25,803		(6,512)		74,963			57,354
Free cash flow variance			112.1%		33.2%		(38.5%)		48.4%		(48.4%)		57.4%			112.1%
(1) Reclassified to conform to current period presentation.
(2) Gross profit, EBITDA excluding non-cash items and free cash flow for District Energy for the nine months ended September 30, 2009 are shown at a 100% controlling interest. Had we instead presented these metrics for District Energy for the nine months ended September 30, 2009 at our current 50.01% ownership, free cash flow would have been $5.2 million, or an increase of 22.9% from 2009 to 2010 and an increase of 69.1% in MIC's proportionately combined free cash flow from 2009 to 2010.
(3) 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 third-party bulk liquid storage terminal businesses in the United States. IMTT owns and operates 10 marine storage terminals in the United States and has interests in two terminals in Canada. The terminals store and handle a wide variety of petroleum grades, chemicals and vegetable and animal oils.

"IMTT’s excellent results for the quarter reflect the strong performance of the core terminal operations as well as another outsized contribution from IMTT’s Oil Mop subsidiary. The combination of these resulted in free cash flow increasing 138% in the quarter to $44.5 million from $18.7 million in the prior comparable period,” said Hooke.

Quarterly gross profit at Oil Mop, IMTT’s environmental response services business, increased to $31.6 million, from $377,000 in the third quarter of 2009. The substantial majority of the increase was attributed to Oil Mop’s involvement in the clean-up efforts along the Gulf of Mexico.

"We anticipate that Oil Mop’s contribution in the fourth quarter will be materially less than the previous two quarters as the spill clean-up operations along the Gulf coast wind down. We further expect that Oil Mop’s contribution beyond 2010 to return to historical levels,” added Hooke.

Growth in storage revenue was primarily driven by an increase in average storage rental rates of 6.8% during the quarter, and an increase in storage capacity mainly attributable to expansion projects at IMTT’s Louisiana facilities. The business expects average storage rates to increase at high single-digit rates in 2011 as contracts that have already been signed become effective. The predominantly fixed cost nature of the business resulted in increases in terminal gross profit of nearly 16% and 20% for the quarter and year to date periods, respectively.

Capacity utilization in the quarter decreased from 93.7% percent in 2009 to 93.0% in 2010, as expected, as certain tanks were taken out of service for inspection, repairs and maintenance. Utilization rates are expected to return to higher and historically normal levels in early 2011.

IMTT announced that it has commenced the construction and/or refurbishment of 1.9 million barrels of storage capacity, including 1.2 million barrels contracted during the quarter. The projects are expected to cost approximately $50.7 million. Including the growth projects announced in August, IMTT anticipates these efforts will generate an incremental $10.4 million in annualized gross profit and EBITDA when completed in early 2011. IMTT is continuing to evaluate investment opportunities with an aggregate cost of between $200 million and $250 million.

In August 2010, IMTT issued $85.0 million of Gulf Opportunity Zone (GO Zone) bonds having 36-year maturities. Proceeds from the issuance of the bonds were used to repay a portion of the drawn balance on the company’s revolving credit facility. IMTT was given approval to issue an additional $100.0 million and $27.4 million of GO Zone bonds on August 19 and October 21, respectively. The bonds will be issued in the fourth quarter and the proceeds will again be used to reduce the drawn balance on the company’s revolving credit facility. The bonds are in addition to $215.0 million of GO Zone bonds issued by IMTT in 2007.

All or a portion of the bonds issued in 2010 may be sold to certain banking institutions. To the extent they are sold, the bonds will no longer require backing by letters of credit guaranteed by IMTT’s revolving credit facility and will increase the debt capacity of the business. The bond issuance will extend the average maturity of the debt in the business and reduce the weighted average cost of its debt overall.

The Gas Company

The Gas Company (TGC) is the owner and operator of the only regulated (utility) gas production facility 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 operations on the islands.

"TGC’s performance in the quarter reflects increased tourism and improved economic activity in Hawaii that resulted in a 4.7% increase in the volume of gas products sold,” said Hooke. "In addition, TGC continued to benefit from the implementation of the utility rate case that was approved in June of 2009 and from favorable trends in the pricing of liquefied petroleum gas.”

The Gas Company recently renegotiated its feedstock contract with a local refiner. The agreement is awaiting approval from the Hawaii Public Utilities Commission. The changes in the cost of feedstock are passed through to consumers via a fuel adjustment charge mechanism and have no impact on utility contribution margin. TGC has also renegotiated its liquefied petroleum gas supply contracts that increased the volume of locally sourced gas and is expected to result in a decrease in supply and distribution costs.

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.

"District Energy’s performance during the third quarter reflected the essential services nature of the business and seasonally higher demand for cooling at this time of year,” said Hooke. "Consumption revenue increased as a result of warmer temperatures this year compared with last that drove an increase in demand for cooling. Revenue from contracted capacity grew with an increase in the number of customers being served this year versus 2009.”

District Energy generated free cash flow of $7.2 million in the third quarter of 2010. Free cash flow was approximately $1.8 million, or 33%, higher than was generated in the third quarter of 2009. MIC includes 50.01% of this amount, or $3.6 million, in its proportionately combined free cash flow.

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 private (general aviation) jet aircraft at 68 airports and one heliport in the United States. The network is the largest of its type in the air transportation industry in the United States.

Atlantic reported a 4.0% increase in the volume of general aviation jet fuel sold through the first nine months of 2010 compared with the same period in 2009. The reported average fuel margin for the same period was essentially flat compared to the previous year as margin compression in the first half of 2010 was offset by a 4.2% margin increase in the third quarter.

"General aviation flight activity increased for an eleventh consecutive month consistent with positive trends in the broader economy,” said Hooke. "Although the reported results were quite positive, we prefer to look at the performance of the business after adjustments for certain events that are unlikely to recur – such as the meeting of the G-20 in Pittsburgh in 2009 and the temporary closure of the runway at the airport in Rifle, Colorado in 2010 among them – and we see volume up 5.2% and average margins up 1.5%.”

Gross profit for the quarter and nine months ended September 30, 2010 increased 3.4% and 1.3%, respectively, compared with the same periods in 2009. An increase in aggregate fuel-related gross profit was partially offset by lower non-fuel gross profit, although the decline in non-fuel gross profit for the quarter reflected primarily a movement from pre-paid fuel sales (recorded in non-fuel revenue) to retail fuel sales (recorded in fuel revenue). Excluding the movement in fuels sales, the gross profit generated from other non-fuel services such as hangar rental, aircraft cleaning and catering services, was flat year over year.

Hooke noted, "We are pleased that the volume of fuel sold by Atlantic, as well as the margin on those sales continues to trend upward. This trend, along with stabilization in non-fuel services and ongoing expense reduction efforts, has helped substantially reduce Atlantic’s leverage level.”

Under the terms of its debt agreement, Atlantic is applying all of the excess cash flow generated to the pre-payment of debt principal as long as the business’ debt to EBITDA (trailing twelve months, as adjusted) ratio exceeds 6.0x. Including a payment made in the first week of November, Atlantic has applied $60.6 million of excess cash flow to pre-pay $55.0 million of term loan principal and incurred $5.5 million of related interest rate swap breakage fees to date in 2010. Including the November payment, Atlantic’s ratio of debt to EBITDA (trailing twelve months, as adjusted, at September 30, 2010) is 7.04x.

Use of Non-GAAP Measures

MIC has reported EBITDA excluding non-cash items on a consolidated and operating segment basis and reconciled each to the corresponding financial statements. EBITDA excluding non-cash items is a metric relied upon by management in evaluating the performance of its businesses and investment. EBITDA excluding non-cash items is defined as earnings before interest, taxes, depreciation and amortization and non-cash items, which include impairments, derivative gains and losses and adjustments for 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, and 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, 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. MIC believes that reporting free cash flow will provide investors with additional insight into its ability to deploy cash in the future, as GAAP metrics such as net income 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 entities.

MIC defines free cash flow as cash from operating activities, less maintenance capital expenditures and changes in working capital. Working capital movements are excluded on the basis that these are largely timing differences in payables and receivables, and are therefore not reflective of MIC's ability to generate cash.

MIC notes that free cash flow does not fully reflect its ability to deploy generated cash freely, as it does not reflect required principal payments on indebtedness, payments of dividends and other fixed obligations, among other items excluded when calculating free cash flow. Free cash flow may be calculated in a different manner 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.

Conference Call and Webcast

When: Management has scheduled a conference call for 8:00 a.m. Eastern Time on Thursday, November 4, 2010 to review the Company's third quarter 2010 results.

How: To listen to the conference call please dial +1(650) 521-5252 at least 10 minutes prior to the scheduled start time. Interested parties can also listen to a webcast of the call. The webcast will be accessible via the Company's website at www.macquarie.com/mic.

Materials: The Company will prepare printable materials in support of its conference call presentation. The materials will be available for downloading from the Company's website the morning of November 4, 2010 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 conference call, a replay will be available after 2:00 p.m. on November 4 through November 18, 2010 at +1(706) 645-9291, Passcode: 19457176. An online archive of the webcast will be available on the Company's website for one year following the call.

MIC filed its financial report for the second quarter of 2010 on SEC Form 10-Q after the close of the financial markets on November 3, 2010.

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 production and distribution business in Hawaii, The Gas Company, and a controlling interest in a District Energy business in Chicago, and a 50% indirect 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. MIC-G

Forward-Looking Statements

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 United States 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, 2010				December 31, 2009
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	37,037			$	27,455
Accounts receivable, less allowance for doubtful accounts  of $411 and $1,629, respectively				51,045				47,256
Inventories				15,125				14,305
Prepaid expenses				7,171				6,688
Income tax receivable				1,019				-
Deferred income taxes				21,600				23,323
Other				9,120				10,839
Assets of discontinued operations held for sale				-				86,695
Total current assets				142,117				216,561
Property, equipment, land and leasehold improvements, net				565,761				580,087
Restricted cash				13,780				16,016
Equipment lease receivables				33,729				33,266
Investment in unconsolidated business				211,662				207,491
Goodwill				516,182				516,182
Intangible assets, net				724,927				751,081
Deferred financing costs, net of accumulated amortization				13,975				17,088
Other				1,820				1,449
Total assets			$	2,223,953			$	2,339,221
LIABILITIES AND MEMBERS' EQUITY
Current liabilities:
Due to manager - related party			$	2,466			$	1,977
Accounts payable				40,591				44,575
Accrued expenses				20,919				17,432
Current portion of notes payable and capital leases				235				235
Current portion of long-term debt				52,745				45,900
Fair value of derivative instruments				44,546				49,573
Customer deposits				4,593				5,617
Other				8,935				9,338
Liabilities of discontinued operations held for sale				-				220,549
Total current liabilities				175,030				395,196
Notes payable and capital leases, net of current portion				1,232				1,498
Long-term debt, net of current portion				1,103,199				1,166,379
Deferred income taxes				154,163				107,840
Fair value of derivative instruments				69,757				54,794
Other				40,727				38,746
Total liabilities				1,544,108				1,764,453
Commitments and contingencies				-				-
Members’ equity:
LLC interests, no par value; 500,000,000 authorized; 45,715,448 LLC  interests issued and outstanding at September 30, 2010 and 45,292,913 LLC  interests issued and outstanding at December 31, 2009				964,430				959,897
Additional paid in capital				20,727				21,956
Accumulated other comprehensive loss				(29,422)				(43,232)
Accumulated deficit				(273,668)				(360,095)
Total members’ equity				682,067				578,526
Noncontrolling interests				(2,222)				(3,758)
Total equity				679,845				574,768
Total liabilities and equity			$	2,223,953			$	2,339,221

MACQUARIE INFRASTRUCTURE COMPANY LLC
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($ In Thousands, Except Share and Per ShareData)
		Quarter Ended							Nine Months Ended
			September 30, 2010			September 30, 2009 (1)				September 30, 2010			September 30, 2009 (1)
Revenue
Revenue from product sales		$	129,217		$	103,017			$	374,412		$	281,639
Revenue from product sales - utility			28,232			26,056				83,517			67,637
Service revenue			54,598			55,299				157,598			163,603
Financing and equipment lease income			1,251			1,190				3,767			3,587
Total revenue			213,298			185,562				619,294			516,466
Costs and expenses
Cost of product sales			78,843			61,923				235,784			162,334
Cost of product sales - utility			22,467			20,088				66,931			52,024
Cost of services			16,625			13,460				41,088			35,600
Selling, general and administrative			50,486			50,054				150,742			154,922
Fees to manager - related party			2,380			1,639				6,837			2,952
Goodwill impairment			-			-				-			71,200
Depreciation			6,973			7,177				21,897			29,597
Amortization of intangibles			8,743			9,126				26,154			51,923
Total operating expenses			186,517			163,467				549,433			560,552
Operating income (loss)			26,781			22,095				69,861			(44,086)
Other income (expense)
Interest income			2			7				22			108
Interest expense (2)			(24,844)			(39,308)				(98,505)			(74,977)
Equity in earnings and amortization charges  of investee			7,804			1,178				19,171			16,655
Loss on derivative instruments			-			-				-			(25,238)
Other income, net			1,269			296				821			1,146
Net income (loss) from continuing operations before  income taxes			11,012			(15,732)				(8,630)			(126,392)
(Provision) benefit for income taxes			(2,036)			(984)				12,541			36,403
Net income (loss) from continuing operations		$	8,976		$	(16,716)			$	3,911		$	(89,989)
Net (loss) income from discontinued operations, net of taxes			-			(1,680)				81,199			(11,263)
Net income (loss)		$	8,976		$	(18,396)			$	85,110		$	(101,252)
Less: net income (loss) attributable to noncontrolling interests			34			(48)				(1,317)			(920)
Net income (loss) attributable to MIC LLC		$	8,942		$	(18,348)			$	86,427		$	(100,332)
Basic income (loss) per share from continuing operations attributable  to MIC LLC interest holders		$	0.20		$	(0.38)			$	0.12		$	(2.01)
Basic (loss) income per share from discontinued operations  attributable to MIC LLC interest holders			-			(0.03)				1.78			(0.22)
Basic income (loss) per share attributable to MIC LLC interest holders		$	0.20		$	(0.41)			$	1.90		$	(2.23)
Weighted average number of shares outstanding: basic			45,715,448			45,006,771				45,493,982			44,969,093
Diluted income (loss) per share from continuing operations  attributable to MIC LLC interest holders		$	0.20		$	(0.38)			$	0.12		$	(2.01)
Diluted (loss) income per share from discontinued operations  attributable to MIC LLC interest holders			-			(0.03)				1.78			(0.22)
Diluted income (loss) per share attributable to MIC LLC interest holders		$	0.20		$	(0.41)			$	1.90		$	(2.23)
Weighted average number of shares outstanding: diluted			45,747,437			45,006,771				45,592,577			44,969,093
___________________
(1) Reclassified to conform to current period presentation.
(2) Interest expense includes non-cash losses on derivative instruments of $3.8 million and $35.5 million for the quarter and nine months ended September 30, 2010, respectively, and non-cash losses of $17.9 million and $4.8 million for the quarter and nine months ended September 30, 2009, respectively.

MACQUARIE INFRASTRUCTURE COMPANY LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($ In Thousands)
		Nine Months Ended
		September 30, 2010				September 30, 2009 (1)
Operating activities
Net income (loss)		$	85,110			$	(101,252)
Adjustments to reconcile net income (loss) to net cash provided by operating  activities from continuing operations:
Net (income) loss from discontinued operations before noncontrolling interests			(81,199)				11,263
Non-cash goodwill impairment			-				71,200
Depreciation and amortization of property and equipment			26,807				34,103
Amortization of intangible assets			26,154				51,923
Equity in earnings and amortization charges of investees			(19,171)				(16,655)
Equity distributions from investees			15,000				7,000
Amortization of debt financing costs			3,299				3,824
Non-cash derivative loss			35,497				30,035
Base management fees settled in LLC interests			2,189				2,490
Equipment lease receivable, net			2,202				2,058
Deferred rent			217				131
Deferred taxes			(13,685)				(37,273)
Other non-cash expenses, net			2,908				423
Changes in other assets and liabilities, net of acquisitions:
Restricted cash			50				-
Accounts receivable			(5,254)				6,913
Inventories			(895)				776
Prepaid expenses and other current assets			878				3,259
Due to manager - related party			2,383				(3,464)
Accounts payable and accrued expenses			(221)				357
Income taxes payable			(1,281)				(606)
Other, net			(1,006)				(2,361)
Net cash provided by operating activities from continuing operations			79,982				64,144
Investing activities
Purchases of property and equipment			(12,462)				(19,608)
Investment in capital leased assets			(2,400)				-
Other			630				114
Net cash used in investing activities from continuing operations			(14,232)				(19,494)
Financing activities
Proceeds from long-term debt			-				10,000
Net proceeds on line of credit facilities			-				9,250
Contributions received from noncontrolling interests			300				-
Distributions paid to noncontrolling interests			(1,935)				(381)
Payment of long-term debt			(56,336)				(72,620)
Debt financing costs paid			(186)				-
Change in restricted cash			2,236				(33)
Payment of notes and capital lease obligations			(102)				(127)
Net cash used in financing activities from continuing operations			(56,023)				(53,911)
Net change in cash and cash equivalents from continuing operations			9,727				(9,261)
Cash flows provided by (used in) discontinued operations:
Net cash used in operating activities		$	(12,703)			$	(4,735)
Net cash provided by (used in) investing activities			134,356				(372)
Net cash (used in) provided by financing activities			(124,183)				2,354
Cash used in discontinued operations (2)			(2,530)				(2,753)
Change in cash of discontinued operations held for sale (2)			2,385				(704)
Net change in cash and cash equivalents			9,582				(12,718)
Cash and cash equivalents, beginning of period			27,455				66,054
Cash and cash equivalents, end of period - continuing operations		$	37,037			$	53,336
Supplemental disclosures of cash flow information for continuing operations:
Non-cash investing and financing activities:
Accrued purchases of property and equipment		$	1,208			$	209
Issuance of LLC interests to manager for base management fees		$	4,083			$	2,490
Issuance of LLC interests to independent directors		$	450			$	450
Taxes paid		$	2,059			$	1,129
Interest paid		$	59,737			$	67,417
___________________
(1) Reclassified to conform to current period presentation.
(2) Cash of discontinued operations held for sale is reported in assets of discontinued operations held for sale in the accompanying consolidated condensed balance sheet. The cash used in discontinued operations is different than the change in cash of discontinued operations held for sale due to intercompany transactions that are eliminated in consolidation.

CONSOLIDATED STATEMENT OF OPERATIONS
		Quarter Ended September 30,									Change (from 2009 to 2010) Favorable/(Unfavorable)						Nine Months Ended September 30,									Change (from 2009 to 2010) Favorable/(Unfavorable)
		2010				2009 (1)					$			%			2010				2009 (1)					$			%
		($ in Thousands) (Unaudited)
Revenue
Revenue from product sales		$	129,217			$	103,017				26,200			25.4			$	374,412			$	281,639				92,773			32.9
Revenue from product sales - utility			28,232				26,056				2,176			8.4				83,517				67,637				15,880			23.5
Service revenue			54,598				55,299				(701	)		(1.3	)			157,598				163,603				(6,005	)		(3.7	)
Financing and equipment lease income			1,251				1,190				61			5.1				3,767				3,587				180			5.0
Total revenue			213,298				185,562				27,736			14.9				619,294				516,466				102,828			19.9
Costs and expenses
Cost of product sales			78,843				61,923				(16,920	)		(27.3	)			235,784				162,334				(73,450	)		(45.2	)
Cost of product sales - utility			22,467				20,088				(2,379	)		(11.8	)			66,931				52,024				(14,907	)		(28.7	)
Cost of services			16,625				13,460				(3,165	)		(23.5	)			41,088				35,600				(5,488	)		(15.4	)
Gross profit			95,363				90,091				5,272			5.9				275,491				266,508				8,983			3.4
Selling, general and administrative			50,486				50,054				(432	)		(0.9	)			150,742				154,922				4,180			2.7
Fees to manager - related party			2,380				1,639				(741	)		(45.2	)			6,837				2,952				(3,885	)		(131.6	)
Goodwill impairment			-				-				-			-				-				71,200				71,200			NM
Depreciation			6,973				7,177				204			2.8				21,897				29,597				7,700			26.0
Amortization of intangibles			8,743				9,126				383			4.2				26,154				51,923				25,769			49.6
Total operating expenses			68,582				67,996				(586	)		(0.9	)			205,630				310,594				104,964			33.8
Operating income (loss)			26,781				22,095				4,686			21.2				69,861				(44,086	)			113,947			NM
Other income (expense)
Interest income			2				7				(5	)		(71.4	)			22				108				(86	)		(79.6	)
Interest expense (2)			(24,844	)			(39,308	)			14,464			36.8				(98,505	)			(74,977	)			(23,528	)		(31.4	)
Equity in earnings and amortization
charges of investees			7,804				1,178				6,626			NM				19,171				16,655				2,516			15.1
Loss on derivative instruments			-				-				-			-				-				(25,238	)			25,238			NM
Other income, net			1,269				296				973			NM				821				1,146				(325	)		(28.4	)
Net income (loss) from continuing operations before income taxes			11,012				(15,732	)			26,744			170.0				(8,630	)			(126,392	)			117,762			93.2
(Provision) benefit for income taxes			(2,036	)			(984	)			(1,052	)		(106.9	)			12,541				36,403				(23,862	)		(65.5	)
Net income (loss) from continuing operations		$	8,976			$	(16,716	)			25,692			153.7			$	3,911			$	(89,989	)			93,900			104.3
Net (loss) income from discontinued operations, net of taxes			-				(1,680	)			1,680			NM				81,199				(11,263	)			92,462			NM
Net income (loss)		$	8,976			$	(18,396	)			27,372			148.8			$	85,110			$	(101,252	)			186,362			184.1
Less: net income (loss) attributable to noncontrolling interests			34				(48	)			(82	)		(170.8	)			(1,317	)			(920	)			397			43.2
Net income (loss) attributable to MIC LLC		$	8,942			$	(18,348	)			27,290			148.7			$	86,427			$	(100,332	)			186,759			186.1
___________________
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Interest expense includes non-cash losses on derivative instruments of $3.8 million and $35.5 million for the quarter and nine months ended September 30, 2010, respectively, and non-cash losses of $17.9 million and $4.8 million for the quarter and nine months ended September 30, 2009, respectively.
MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND EBITDA EXCLUDING NON-CASH ITEMS TO FREE CASH FLOW
		Quarter Ended September 30,									Change (from 2009 to 2010) Favorable/(Unfavorable)						Nine Months Ended September 30,									Change (from 2009 to 2010) Favorable/(Unfavorable)
		2010				2009 (1)					$			%			2010				2009 (1)					$			%
		($ in Thousands) (Unaudited)
Net income (loss) attributable to MIC LLC from continuing operations (2)		$	8,942			$	(16,890	)									$	5,364			$	(90,504	)
Interest expense, net (3)			24,842				39,301											98,483				74,869
Provision (benefit) for income taxes			2,036				984											(12,541	)			(36,403	)
Depreciation (4)			6,973				7,177											21,897				29,597
Depreciation - cost of services (4)			1,639				1,541											4,910				4,506
Amortization of intangibles (5)			8,743				9,126											26,154				51,923
Goodwill impairment			-				-											-				71,200
Loss on derivative instruments			-				-											-				25,238
Equity in earnings and amortization  charges of investees (6)			2,196				(1,178	)										(4,171	)			(9,655	)
Base management fees settled in LLC interests			-				1,639											2,189				2,490
Other non-cash expense, net			902				991											1,672				1,069
EBITDA excluding non-cash items from continuing operations		$	56,273			$	42,691				13,582			31.8			$	143,957			$	124,330				19,627			15.8
EBITDA excluding non-cash items from continuing operations		$	56,273			$	42,691										$	143,957			$	124,330
Interest expense, net (3)			(24,842	)			(39,301	)										(98,483	)			(74,869	)
Interest rate swap breakage fees (3)			(1,484	)			(1,185	)										(4,689	)			(7,862	)
Non-cash derivative losses recorded in interest expense (3)			5,307				19,047											40,186				12,659
Amortization of debt financing costs (3)			1,043				1,310											3,299				3,824
Equipment lease receivables, net			751				651											2,202				2,058
Provision/benefit for income taxes, net of changes in deferred taxes			325				(126	)										(1,144	)			(870	)
Changes in working capital			963				1,295											(5,346	)			4,874
Cash provided by operating activities			38,336				24,382											79,982				64,144
Changes in working capital			(963	)			(1,295	)										5,346				(4,874	)
Maintenance capital expenditures			(3,053	)			(2,749	)										(6,802	)			(5,984	)
Free cash flow from continuing operations		$	34,320			$	20,338				13,982			68.7			$	78,526			$	53,286				25,240			47.4
___________________
(1) Reclassified to conform to current period presentation.
(2) Net income (loss) attributable to MIC LLC from continuing operations excludes 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, and net income attributable to noncontrolling interests of $174,000 and $515,000 for the quarter and nine months ended September 30, 2009, respectively.
(3) Interest expense, net, includes non-cash losses on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
(4) 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 $1.7 million for each quarter 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) Amortization of intangibles does not include acquisition-related step-up amortization expense of $283,000 for each quarter related to intangible assets 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.
(6) 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.

IMTT
			Quarter Ended September 30,														Nine Months Ended September 30,
			2010			2009 (1)				Change Favorable/(Unfavorable)							2010			2009 (1)				Change Favorable/(Unfavorable)
			$			$				$			%				$			$				$			%
			($ In Thousands) (Unaudited)
Revenue
Terminal revenue			91,825			80,962				10,863			13.4				278,122			242,524				35,598			14.7
Environmental response revenue			90,377			4,206				86,171			NM				169,353			11,421				157,932			NM
Total revenue			182,202			85,168				97,034			113.9				447,475			253,945				193,530			76.2
Costs and expenses
Terminal operating costs			42,300			38,114				(4,186	)		(11.0	)			124,846			114,577				(10,269	)		(9.0	)
Environmental response operating costs			58,728			3,829				(54,899	)		NM				108,199			11,759				(96,440	)		NM
Total operating costs			101,028			41,943				(59,085	)		(140.9	)			233,045			126,336				(106,709	)		(84.5	)
Terminal gross profit			49,525			42,848				6,677			15.6				153,276			127,947				25,329			19.8
Environmental response gross profit			31,649			377				31,272			NM				61,154			(338	)			61,492			NM
Gross profit			81,174			43,225				37,949			87.8				214,430			127,609				86,821			68.0
General and administrative expenses			10,839			6,653				(4,186	)		(62.9	)			29,802			19,220				(10,582	)		(55.1	)
Depreciation and amortization			16,602			13,457				(3,145	)		(23.4	)			46,136			39,735				(6,401	)		(16.1	)
Operating income			53,733			23,115				30,618			132.5				138,492			68,654				69,838			101.7
Interest expense, net (2)			(20,586	)		(15,452	)			(5,134	)		(33.2	)			(58,485	)		(4,842	)			(53,643	)		NM
Other income			220			340				(120	)		(35.3	)			1,581			172				1,409			NM
Unrealized gains on derivative instruments			-			-				-			-				-			3,306				(3,306	)		NM
Provision for income taxes			(15,546	)		(3,137	)			(12,409	)		NM				(35,902	)		(27,035	)			(8,867	)		(32.8	)
Noncontrolling interests			153			(145	)			298			NM				(247	)		152				(399	)		NM
Net income			17,974			4,721				13,253			NM				45,439			40,407				5,032			12.5
Reconciliation of net income to EBITDA excluding non-cash items:
Net income			17,974			4,721											45,439			40,407
Interest expense, net (2)			20,586			15,452											58,485			4,842
Provision for income taxes			15,546			3,137											35,902			27,035
Depreciation and amortization			16,602			13,457											46,136			39,735
Unrealized gains on derivative instruments			-			-											-			(3,306	)
Other non-cash (income) expenses			(518	)		378											(273	)		(291	)
EBITDA excluding non-cash items			70,190			37,145				33,045			89.0				185,689			108,422				77,267			71.3
EBITDA excluding non-cash items			70,190			37,145											185,689			108,422
Interest expense, net (2)			(20,586	)		(15,452	)										(58,485	)		(4,842	)
Non-cash derivative losses (gains) recorded in interest expense(2)			11,041			8,074											33,094			(17,148	)
Amortization of debt financing costs (2)			618			118											1,328			353
Provision for income taxes, net of changes in deferred taxes			(6,580	)		(1,020	)										(10,812	)		(2,567	)
Changes in working capital			7,761			(3,030	)										(19,693	)		8,453
Cash provided by operating activities			62,444			25,835											131,121			92,671
Changes in working capital			(7,761	)		3,030											19,693			(8,453	)
Maintenance capital expenditures			(10,138	)		(10,183	)										(29,169	)		(26,864	)
Free cash flow			44,545			18,682				25,863			138.4				121,645			57,354				64,291			112.1
___________________
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.
THE GAS COMPANY
			Quarter Ended September 30,														Nine Months Ended September 30,
			2010			2009 (1)				Change Favorable/(Unfavorable)							2010			2009 (1)				Change Favorable/(Unfavorable)
			$			$				$			%				$			$				$			%
			($ In Thousands) (Unaudited)
Contribution margin
Revenue - utility			28,232			26,056				2,176			8.4				83,517			67,637				15,880			23.5
Cost of revenue - utility			18,904			16,535				(2,369	)		(14.3	)			56,178			41,865				(14,313	)		(34.2	)
Contribution margin - utility			9,328			9,521				(193	)		(2.0	)			27,339			25,772				1,567			6.1
Revenue - non-utility			23,214			18,680				4,534			24.3				72,760			58,145				14,615			25.1
Cost of revenue - non-utility			11,179			8,952				(2,227	)		(24.9	)			37,024			26,569				(10,455	)		(39.4	)
Contribution margin - non-utility			12,035			9,728				2,307			23.7				35,736			31,576				4,160			13.2
Total contribution margin			21,363			19,249				2,114			11.0				63,075			57,348				5,727			10.0
Production			1,718			1,684				(34	)		(2.0	)			5,126			4,778				(348	)		(7.3	)
Transmission and distribution			4,919			5,003				84			1.7				15,050			14,375				(675	)		(4.7	)
Gross profit			14,726			12,562				2,164			17.2				42,899			38,195				4,704			12.3
Selling, general and administrative expenses			4,259			4,212				(47	)		(1.1	)			12,557			12,057				(500	)		(4.1	)
Depreciation and amortization			1,492			1,713				221			12.9				4,926			5,135				209			4.1
Operating income			8,975			6,637				2,338			35.2				25,416			21,003				4,413			21.0
Interest expense, net (2)			(5,047	)		(5,406	)			359			6.6				(15,780	)		(6,774	)			(9,006	)		(132.9	)
Other income (expense)			1			(91	)			92			101.1				(10	)		(216	)			206			95.4
Unrealized losses on derivative instruments			-			-				-			-				-			(327	)			327			NM
Provision for income taxes			(1,538	)		(446	)			(1,092	)		NM				(3,769	)		(5,359	)			1,590			29.7
Net income (3)			2,391			694				1,697			NM				5,857			8,327				(2,470	)		(29.7	)
Reconciliation of net income to EBITDA excluding non-cash items:
Net income (3)			2,391			694											5,857			8,327
Interest expense, net (2)			5,047			5,406											15,780			6,774
Provision for income taxes			1,538			446											3,769			5,359
Depreciation and amortization			1,492			1,713											4,926			5,135
Unrealized losses on derivative instruments			-			-											-			327
Other non-cash expenses			534			510											1,599			1,525
EBITDA excluding non-cash items			11,002			8,769				2,233			25.5				31,931			27,447				4,484			16.3
EBITDA excluding non-cash items			11,002			8,769											31,931			27,447
Interest expense, net (2)			(5,047	)		(5,406	)										(15,780	)		(6,774	)
Non-cash derivative losses recorded in interest expense(2)			2,734			3,194											8,945			65
Amortization of debt financing costs (2)			120			119											359			358
Provision for income taxes, net of changes in deferred taxes			1,478			(579	)										(1,276	)		(2,697	)
Changes in working capital			1,483			(1,451	)										(1,320	)		(1,922	)
Cash provided by operating activities			11,770			4,646											22,859			16,477
Changes in working capital			(1,483	)		1,451											1,320			1,922
Maintenance capital expenditures			(1,030	)		(676	)										(2,008	)		(1,757	)
Free cash flow			9,257			5,421				3,836			70.8				22,171			16,642				5,529			33.2
___________________
NM - Not meaningful
(1) Reclassified to conform to current period presentation. For the quarter and nine months ended September 30, 2010, payroll taxes and certain employee welfare and benefit costs that were previously recorded in selling, general and administrative costs were reclassified to production, transmission and distribution and other income (expense) where the costs were incurred. Accordingly, the quarter and nine months ended September 30, 2009 were restated to reflect this change.
(2) Interest expense, net, includes non-cash losses on derivative instruments and non-cash amortization of deferred financing fees.
(3) Corporate allocation expense, other intercompany fees and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.
DISTRICT ENERGY
			Quarter Ended September 30,														Nine Months Ended September 30,
			2010			2009 (1)				Change Favorable/(Unfavorable)							2010			2009 (1)				Change Favorable/(Unfavorable)
			$			$				$			%				$			$				$			%
			($ In Thousands) (Unaudited)
Cooling capacity revenue			5,302			5,224				78			1.5				15,835			15,231				604			4.0
Cooling consumption revenue			12,596			9,400				3,196			34.0				21,503			17,130				4,373			25.5
Other revenue			823			832				(9	)		(1.1	)			2,490			2,331				159			6.8
Finance lease revenue			1,251			1,190				61			5.1				3,767			3,587				180			5.0
Total revenue			19,972			16,646				3,326			20.0				43,595			38,279				5,316			13.9
Direct expenses — electricity			8,202			5,715				(2,487	)		(43.5	)			14,189			11,103				(3,086	)		(27.8	)
Direct expenses — other (2)			4,941			4,803				(138	)		(2.9	)			14,878			14,075				(803	)		(5.7	)
Direct expenses — total			13,143			10,518				(2,625	)		(25.0	)			29,067			25,178				(3,889	)		(15.4	)
Gross profit			6,829			6,128				701			11.4				14,528			13,101				1,427			10.9
Selling, general and administrative expenses			793			697				(96	)		(13.8	)			2,350			2,051				(299	)		(14.6	)
Amortization of intangibles			345			345				-			-				1,023			1,023				-			-
Operating income			5,691			5,086				605			11.9				11,155			10,027				1,128			11.2
Interest expense, net (3)			(6,862	)		(6,623	)			(239	)		(3.6	)			(20,866	)		(6,850	)			(14,016	)		NM
Other income			1,427			447				980			NM				1,536			541				995			183.9
Unrealized losses on derivative instruments			-			-				-			-				-			(1,378	)			1,378			NM
(Provision) benefit for income taxes			(23	)		500				(523	)		(104.6	)			3,464			(721	)			4,185			NM
Noncontrolling interests			(198	)		(174	)			(24	)		(13.8	)			(590	)		(515	)			(75	)		(14.6	)
Net income (loss) (4)			35			(764	)			799			104.6				(5,301	)		1,104				(6,405	)		NM
Reconciliation of net income (loss) to EBITDA excluding non-cash items:
Net income (loss) (4)			35			(764	)										(5,301	)		1,104
Interest expense, net (3)			6,862			6,623											20,866			6,850
Provision (benefit) for income taxes			23			(500	)										(3,464	)		721
Depreciation (2)			1,639			1,541											4,910			4,506
Amortization of intangibles			345			345											1,023			1,023
Unrealized losses on derivative instruments			-			-											-			1,378
Other non-cash expenses			265			179											652			455
EBITDA excluding non-cash items			9,169			7,424				1,745			23.5				18,686			16,037				2,649			16.5
EBITDA excluding non-cash items			9,169			7,424											18,686			16,037
Interest expense, net (3)			(6,862	)		(6,623	)										(20,866	)		(6,850	)
Non-cash derivative losses (gains) recorded in interest expense (3)			4,180			4,069											13,006			(739	)
Amortization of debt financing costs (3)			171			171											511			511
Equipment lease receivable, net			751			651											2,202			2,058
Changes in working capital			(92	)		(970	)										(3,661	)		(1,454	)
Cash provided by operating activities			7,317			4,722											9,878			9,563
Changes in working capital			92			970											3,661			1,454
Maintenance capital expenditures			(249	)		(305	)										(813	)		(664	)
Free cash flow			7,160			5,387				1,773			32.9				12,726			10,353				2,373			22.9
___________________
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Includes depreciation expense of $1.6 million and $4.9 million for the quarter and nine month ended September 30, 2010, respectively, and $1.5 million and $4.5 million for the quarter and nine months ended September 30, 2009, respectively.
(3) Interest expense, net, includes non-cash gains (losses) on derivative instruments and non-cash amortization of deferred financing fees.
(4) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.
ATLANTIC AVIATION
			Quarter Ended September 30,														Nine Months Ended September 30,
			2010			2009 (1)				Change Favorable/(Unfavorable)							2010			2009 (1)				Change Favorable/(Unfavorable)
			$			$				$			%				$			$				$			%
			($ In Thousands) (Unaudited)
Revenue
Fuel revenue			106,003			84,337				21,666			25.7				301,652			223,494				78,158			35.0
Non-fuel revenue			35,877			39,843				(3,966	)		(10.0	)			117,770			128,911				(11,141	)		(8.6	)
Total revenue			141,880			124,180				17,700			14.3				419,422			352,405				67,017			19.0
Cost of revenue
Cost of revenue-fuel			64,590			49,837				(14,753	)		(29.6	)			189,337			126,772				(62,565	)		(49.4	)
Cost of revenue-non-fuel			3,482			2,943				(539	)		(18.3	)			12,021			10,423				(1,598	)		(15.3	)
Total cost of revenue			68,072			52,780				(15,292	)		(29.0	)			201,358			137,195				(64,163	)		(46.8	)
Fuel gross profit			41,413			34,500				6,913			20.0				112,315			96,722				15,593			16.1
Non-fuel gross profit			32,395			36,900				(4,505	)		(12.2	)			105,749			118,488				(12,739	)		(10.8	)
Gross profit			73,808			71,400				2,408			3.4				218,064			215,210				2,854			1.3
Selling, general & administrative expenses (2)			42,969			43,413				444			1.0				129,762			134,734				4,972			3.7
Goodwill impairment			-			-				-			-				-			71,200				71,200			NM
Depreciation and amortization			13,879			14,245				366			2.6				42,102			75,362				33,260			44.1
Operating income (loss)			16,960			13,742				3,218			23.4				46,200			(66,086	)			112,286			169.9
Interest expense, net (3)			(12,938	)		(26,382	)			13,444			51.0				(61,612	)		(57,822	)			(3,790	)		(6.6	)
Other expense			(101	)		(109	)			8			7.3				(645	)		(322	)			(323	)		(100.3	)
Unrealized losses on derivative instruments			-			-				-			-				-			(23,331	)			23,331			NM
(Provision) benefit for income taxes			(1,580	)		5,137				(6,717	)		(130.8	)			6,471			59,467				(52,996	)		(89.1	)
Net income (loss) (4)			2,341			(7,612	)			9,953			130.8				(9,586	)		(88,094	)			78,508			89.1
Reconciliation of net income (loss) to EBITDA excluding non-cash items:
Net income (loss) (4)			2,341			(7,612	)										(9,586	)		(88,094	)
Interest expense, net (3)			12,938			26,382											61,612			57,822
Provision (benefit) for income taxes			1,580			(5,137	)										(6,471	)		(59,467	)
Depreciation and amortization			13,879			14,245											42,102			75,362
Goodwill impairment			-			-											-			71,200
Unrealized losses on derivative instruments			-			-											-			23,331
Other non-cash expenses (income)			149			43											754			(324	)
EBITDA excluding non-cash items			30,887			27,921				2,966			10.6				88,411			79,830				8,581			10.7
EBITDA excluding non-cash items			30,887			27,921											88,411			79,830
Interest expense, net (3)			(12,938	)		(26,382	)										(61,612	)		(57,822	)
Interest rate swap breakage fees (3)			(1,484	)		(1,185	)										(4,689	)		(7,862	)
Non-cash derivative (gains) losses recorded in interest expense (3)			(1,602	)		11,702											18,237			13,132
Amortization of debt financing costs (3)			753			815											2,225			2,341
Provision/benefit for income taxes, net of changes in deferred taxes			(11	)		9											(298	)		(253	)
Changes in working capital			(2,526	)		4,407											136			14,659
Cash provided by operating activities			13,079			17,287											42,410			44,025
Changes in working capital			2,526			(4,407	)										(136	)		(14,659	)
Maintenance capital expenditures			(1,774	)		(1,768	)										(3,981	)		(3,563	)
Free cash flow			13,831			11,112				2,719			24.5				38,293			25,803				12,490			48.4
___________________
NM - Not meaningful
(1) Reclassified to conform to current period presentation.
(2) Includes a $2.4 million increase in the bad debt reserve in the first quarter of 2009 due to the deterioration of accounts receivable aging.
(3) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.
(4) Corporate allocation expense and the federal tax effect have been excluded from the above table as they are eliminated on consolidation at the MIC Inc. level.

MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF SEGMENT AND PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND EBITDA EXCLUDING NON-CASH ITEMS TO FREE CASH FLOW
(Unaudited)
($ In Thousands)
			For the Quarter Ended September 30, 2010
			IMTT 50%			The Gas Company			District Energy 50.01% (2)			Atlantic Aviation			MIC Corporate			Proportionately Combined (3)				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, net (4)			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, net (4)			(10,293	)		(5,047	)		(3,432	)		(12,938	)		5			(31,705	)			(20,586	)		(6,862	)
Interest rate swap breakage fees (4)			-			-			-			(1,484	)		-			(1,484	)			-			-
Non-cash derivative losses (gains) recorded in interest expense, net (4)			5,521			2,734			2,090			(1,602	)		(5	)		8,738				11,041			4,180
Amortization of deferred finance charges (4)			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
			For the Quarter Ended September 30, 2009 (1)
			IMTT 50%			The Gas Company			District Energy (2)			Atlantic Aviation			MIC Corporate			Proportionately Combined (3)				IMTT 100%
Net income (loss) attributable to MIC LLC from continuing operations			2,361			694			(764	)		(7,612	)		(10,386	)		(15,708	)			4,721
Interest expense, net (4)			7,726			5,406			6,623			26,382			890			47,027				15,452
Provision (benefit) for income taxes			1,569			446			(500	)		(5,137	)		6,175			2,553				3,137
Depreciation			6,564			1,508			1,541			5,669			-			15,282				13,127
Amortization of intangibles			165			205			345			8,576			-			9,291				330
Base management fee paid in LLC interests			-			-			-			-			1,639			1,639				-
Other non-cash expense			189			510			179			43			259			1,180				378
EBITDA excluding non-cash items			18,573			8,769			7,424			27,921			(1,423	)		61,264				37,145
EBITDA excluding non-cash items			18,573			8,769			7,424			27,921			(1,423	)		61,264				37,145
Interest expense, net (4)			(7,726	)		(5,406	)		(6,623	)		(26,382	)		(890	)		(47,027	)			(15,452	)
Interest rate swap breakage fees (4)			-			-			-			(1,185	)		-			(1,185	)			-
Non-cash derivative losses recorded in interest expense, net (4)			4,037			3,194			4,069			11,702			82			23,084				8,074
Amortization of deferred finance charges (4)			59			119			171			815			205			1,369				118
Equipment lease receivables, net			-			-			651			-			-			651				-
Provision / benefit for income taxes, net of changes in deferred taxes			(510	)		(579	)		-			9			444			(636	)			(1,020	)
Changes in working capital			(1,515	)		(1,451	)		(970	)		4,407			(691	)		(220	)			(3,030	)
Cash provided by (used in) operating activities			12,918			4,646			4,722			17,287			(2,273	)		37,300				25,835
Changes in working capital			1,515			1,451			970			(4,407	)		691			220				3,030
Maintenance capital expenditures			(5,092	)		(676	)		(305	)		(1,768	)		-			(7,841	)			(10,183	)
Free cash flow			9,341			5,421			5,387			11,112			(1,582	)		29,679				18,682
___________________________
(1) Reclassified to conform to current period presentation.
(2) Gross profit, EBITDA excluding non-cash items and free cash flow for District Energy for the quarter ended September 30, 2009 are shown at a 100% controlling interest. Had we instead presented these metrics for District Energy for the quarter ended September 30, 2009 at our current 50.01% ownership, free cash flow would have been $2.7 million, or an increase of 32.9% from 2009 to 2010 and an increase of 59.4% in MIC's proportionately combined free cash flow from 2009 to 2010.
(3) 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.
(4) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.

MACQUARIE INFRASTRUCTURE COMPANY LLC
RECONCILIATION OF SEGMENT AND PROPORTIONATELY COMBINED NET INCOME (LOSS) TO EBITDA EXCLUDING NON-CASH ITEMS AND EBITDA EXCLUDING NON-CASH ITEMS TO FREE CASH FLOW
(Unaudited)
($ In Thousands)
			For the Nine Months Ended September 30, 2010
			IMTT 50%			The Gas Company			District Energy 50.01% (2)			Atlantic Aviation			MIC Corporate			Proportionately Combined (3)				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 (4)			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 (4)			(29,243	)		(15,780	)		(10,435	)		(61,612	)		(225	)		(117,295	)			(58,485	)		(20,866	)
Interest rate swap breakage fees (4)			-			-			-			(4,689	)		-			(4,689	)			-			-
Non-cash derivative losses (gains) recorded in interest expense, net (4)			16,547			8,945			6,504			18,237			(2	)		50,231				33,094			13,006
Amortization of deferred finance charges (4)			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
			For the Nine Months Ended September 30, 2009 (1)
			IMTT 50%			The Gas Company			District Energy (2)			Atlantic Aviation			MIC Corporate			Proportionately Combined (3)				IMTT 100%
Net income (loss) attributable to MIC LLC from continuing operations			20,204			8,327			1,104			(88,094	)		(28,496	)		(86,956	)			40,407
Interest expense, net (4)			2,421			6,774			6,850			57,822			3,423			77,290				4,842
Provision (benefit) for income taxes			13,518			5,359			721			(59,467	)		16,984			(22,886	)			27,035
Depreciation			19,131			4,504			4,506			25,093			-			53,234				38,262
Amortization of intangibles			737			631			1,023			50,269			-			52,660				1,473
Goodwill impairment			-			-			-			71,200			-			71,200				-
(Gain) loss on derivative instruments			(1,653	)		327			1,378			23,331			202			23,585				(3,306	)
Base management fee paid in LLC interests			-			-			-			-			2,490			2,490				-
Other non-cash (income) expense			(146	)		1,525			455			(324	)		(587	)		924				(291	)
EBITDA excluding non-cash items			54,211			27,447			16,037			79,830			(5,984	)		171,541				108,422
EBITDA excluding non-cash items			54,211			27,447			16,037			79,830			(5,984	)		171,541				108,422
Interest expense, net (4)			(2,421	)		(6,774	)		(6,850	)		(57,822	)		(3,423	)		(77,290	)			(4,842	)
Interest rate swap breakage fees (4)			-			-			-			(7,862	)		-			(7,862	)			-
Non-cash derivative (gains) losses recorded in interest expense, net (4)			(8,574	)		65			(739	)		13,132			201			4,085				(17,148	)
Amortization of deferred finance charges (4)			177			358			511			2,341			614			4,001				353
Equipment lease receivables, net			-			-			2,058			-			-			2,058				-
Provision / benefit for income taxes, net of changes in deferred taxes			(1,284	)		(2,697	)		-			(253	)		2,080			(2,154	)			(2,567	)
Changes in working capital			4,227			(1,922	)		(1,454	)		14,659			(6,409	)		9,101				8,453
Cash provided by (used in) operating activities			46,336			16,477			9,563			44,025			(12,921	)		103,480				92,671
Changes in working capital			(4,227	)		1,922			1,454			(14,659	)		6,409			(9,101	)			(8,453	)
Maintenance capital expenditures			(13,432	)		(1,757	)		(664	)		(3,563	)		-			(19,416	)			(26,864	)
Free cash flow			28,677			16,642			10,353			25,803			(6,512	)		74,963				57,354
___________________________
(1) Reclassified to conform to current period presentation.
(2) Gross profit, EBITDA excluding non-cash items and free cash flow for District Energy for the nine months ended September 30, 2009 are shown at a 100% controlling interest. Had we instead presented these metrics for District Energy for the nine months ended September 30, 2009 at our current 50.01% ownership, free cash flow would have been $5.2 million, or an increase of 22.9% from 2009 to 2010 and an increase of 69.1% in MIC's proportionately combined free cash flow from 2009 to 2010.
(3) 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.
(4) Interest expense, net, includes non-cash gains (losses) on derivative instruments, non-cash amortization of deferred financing fees and interest rate swap breakage fees.