UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2006

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Macquarie Infrastructure Company Trust

(Exact name of registrant as specified in its charter)

Delaware		20-6196808
(State or Other Jurisdiction of Incorporation or		(I.R.S. Employer Identification No.)
Organization)

Macquarie Infrastructure Company LLC

(Exact name of registrant as specified in its charter)

Delaware		43-2052503
(State or Other Jurisdiction of Incorporation or		(I.R.S. Employer Identification No.)
Organization)

125 West 55th Street, 22nd Floor		10019
New York, New York		(Zip Code)
(Address of principal executive offices)

(212) 231-1000
(Registrants’ Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year if Changed Since Last Report): N/A

     Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

Yesþ Noo

     Indicate by check mark whether the registrants are collectively a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ                 Accelerated filer o                 Non-accelerated filer o

     Indicate by check mark whether the registrants are collectively a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yeso Noþ

     There were 27,212,165 shares of trust stock without par value outstanding at August 8, 2006.

 

 

TABLE OF CONTENTS

OVERVIEW		3
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
MACQUARIE INFRASTRUCTURE COMPANY TRUST
Consolidated Condensed Balance Sheets as of June 30, 2006 (Unaudited) and December 31, 2005
Consolidated Condensed Income Statements for the Quarters and Six Months Ended June 30, 2006 and 2005 (Unaudited)		5
Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2006 and 2005 (Unaudited)		6
Notes to Consolidated Condensed Financial Statements (Unaudited)		8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		25
ITEM 3. Quantitative and Qualitative Disclosure About Market Risk		55
ITEM 4. Controls and Procedures		56
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings		57
ITEM 1A. Risk Factors		57
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds		60
ITEM 3. Defaults Upon Senior Securities		60
ITEM 4. Submission of Matters to a Vote of Security Holders		60
ITEM 5. Other Information		61
ITEM 6. Exhibits		62
EX-31.1: CERTIFICATION
EX-32.1: CERTIFICATION

Investments in Macquarie Infrastructure Company Trust are not deposits with or other liabilities of Macquarie Bank Limited or any of Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither Macquarie Bank Limited nor any other member company of the Macquarie Group guarantees the performance of Macquarie Infrastructure Company Trust or the repayment of capital from Macquarie Infrastructure Company Trust.

Overview

This Quarterly Report on Form 10-Q/A, or this Amendment, is being filed for the purpose of amending and restating our unaudited consolidated financial statements and other financial information contained in our Quarterly Report on Form 10-Q that was originally filed with the Securities and Exchange Commission on August 9, 2006. The Amendment is being made to reflect an accounting error in the treatment for interest rate and foreign exchange derivative instruments that did not qualify for hedge accounting during these periods. Regardless of the accounting treatment reflected in our unaudited financial statements, we continue to believe that our various derivative instruments are economically effective to hedge our exposure to interest and currency exchange rate fluctuations.

The change in the accounting treatment for these instruments is reflected as a non-cash gain in other income in our income statement. The effect of the restatement on our consolidated balance sheet at the end of any of the reported periods is immaterial and the restatement has no net effect on our operating income, cash from operations or consolidated statements of cash flows. See Note 18 to our unaudited consolidated financial statements for a more detailed discussion of the nature of this error and the effect of this change in our accounting treatment on our financial information for the quarter and six months ended June 30, 2006 and June 30, 2005.

This Amendment also corrects our evaluation of disclosure controls and procedures in Part I, Item 4 as a result of our reassessment of material weaknesses in internal control over financial reporting. We also included as exhibits to this Amendment new certifications of our principal executive officer and principal financial officer.

In light of the restatement, readers should no longer rely on our previously filed financial statements and other financial information for the quarter and six months ended June 30, 2006 and June 30, 2005.

Except as described above, no attempt has been made in this Amendment to amend or update other disclosures presented in the Quarterly Report on Form 10-Q/A. Therefore, this Amendment does not reflect events occurring after the original filing on August 9, 2006 or amend or update those disclosures, or related exhibits, affected by subsequent events. Accordingly, this Amendment should be read in conjunction with our other filings with the SEC subsequent to the original filing of our Quarterly Report on Form 10-Q.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MACQUARIE INFRASTRUCTURE COMPANY TRUST

CONSOLIDATED CONDENSED BALANCE SHEETS
As of June 30, 2006 and December 31, 2005
($ in thousands, except share amounts)

		June 30, 2006
		(unaudited)				December 31, 2005
		(restated)
Assets
Current assets:
Cash and cash equivalents		$	37,843			$	115,163
Restricted cash			5,609				1,332
Accounts receivable, less allowance for doubtful accounts of $1,117 and $839, respectively			39,718				21,150
Dividends receivable			9,247				2,365
Other receivables			4,531				—
Inventories			9,365				1,981
Prepaid expenses			4,015				4,701
Deferred income taxes			2,115				2,101
Income tax receivable			3,066				3,489
Other			9,446				4,394
Total current assets			124,955				156,676
Property, equipment, land and leasehold improvements, net			461,314				335,119
Restricted cash			18,722				19,437
Equipment lease receivables			42,449				43,546
Investments in unconsolidated businesses			431,764				69,358
Investment, cost			37,971				35,295
Securities, available for sale			72,462				68,882
Related party subordinated loan			21,147				19,866
Goodwill			402,143				281,776
Intangible assets, net			308,461				299,487
Deposits and deferred costs on acquisitions			2,698				14,746
Deferred financing costs, net of accumulated amortization			16,503				12,830
Fair value of derivative instruments			21,348				4,660
Other			5,536				1,620
Total assets		$	1,967,473			$	1,363,298
Liabilities and stockholders’ equity
Current liabilities:
Due to manager		$	3,829			$	2,637
Accounts payable			24,888				11,535
Accrued expenses			15,165				13,994
Current portion of notes payable and capital leases			5,832				2,647
Current portion of long-term debt			2,146				146
Other			9,366				3,639
Total current liabilities			61,226				34,598

		June 30, 2006
		(unaudited)				December 31, 2005
Capital leases and notes payable, net of current portion			3,259				2,864
Long-term debt, net of current portion			1,044,797				610,848
Related party long-term debt			20,168				18,247
Deferred income taxes			228,933				113,794
Income tax liability			4,306				—
Fair value of derivative instruments			606				—
Other			21,279				6,342
Total liabilities			1,384,574				786,693
Minority interests			8,811				8,940
Stockholders’ equity:
Trust stock, no par value; 500,000,000 authorized; 27,212,165 shares issued and outstanding at June 30, 2006 and 27,050,745 shares issued and outstanding at December 31, 2005			560,549				583,023
Accumulated other comprehensive income (loss)			(1,067)				(12,966	)
Accumulated gain (deficit)			14,606				(2,392	)
Total stockholders’ equity			574,088				567,665
Total liabilities and stockholders’ equity		$	1,967,473			$	1,363,298

See accompanying notes to the consolidated condensed financial statements.

MACQUARIE INFRASTRUCTURE COMPANY TRUST

CONDENSED CONSOLIDATED INCOME STATEMENTS
For the Quarters and Six Months Ended June 30, 2006 and 2005
(Unaudited)
($ in thousands, except share and per share data)

		Quarter Ended								Six Months Ended
		June 30, 2006				June 30, 2005				June 30, 2006				June 30, 2005
		(restated)								(restated)
Revenues
Revenue from product sales		$	56,922			$	34,150			$	98,914			$	64,391
Service revenue			47,726				37,038				90,630				71,190
Financing and equipment lease income			1,285				1,331				2,583				2,673
Total revenue			105,933				72,519				192,127				138,254
Costs and expenses
Cost of product sales			36,010				19,708				61,279				36,803
Cost of services			22,632				19,493				43,664				36,566
Selling, general and administrative			24,294				18,941				48,244				38,286
Fees to manager			3,718				2,209				10,196				4,152
Depreciation			2,121				1,420				3,831				2,747
Amortization of intangibles			3,580				3,235				7,026				6,320
Total operating expenses			92,355				65,006				174,240				124,874
Operating income			13,578				7,513				17,887				13,380
Other income (expense)
Dividend income			2,351				6,184				5,002				6,184
Interest income			1,180				1,231				2,882				2,330
Interest expense			(15,604	)			(7,511	)			(31,267	)			(15,269	)
Equity in earnings (loss) and amortization charges of investees			3,115				(1,139	)			5,568				514
Unrealized gain (loss) on derivative instruments			6,487				(2,305	)			20,162				2,038
Other income (expense), net			94				261				(73	)			(654	)
Net income before income taxes and minority interests			11,201				4,234				20,161				8,523
Income tax expense			1,618				579				3,011				579
Net income before minority interests			9,583				3,655				17,150				7,944
Minority interests			146				306				152				357
Net income		$	9,437			$	3,349			$	16,998			$	7,587
Basic income per share:		$	0.35			$	0.12			$	0.63			$	0.28
Weighted average number of shares of trust stock outstanding: basic			27,062,201				26,960,560				27,056,505				26,786,298
Diluted income per share:		$	0.35			$	0.12			$	0.63			$	0.28
Weighted average number of shares of trust stock outstanding: diluted			27,073,016				26,984,160				27,069,835				26,798,163
Cash dividends declared per share		$	0.50			$	0.5877			$	1.00			$	0.5877

See accompanying notes to the consolidated condensed financial statements.

MACQUARIE INFRASTRUCTURE COMPANY TRUST

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2006 and 2005
(Unaudited)
($ in thousands)

		Six Months Ended
		June 30, 2006				June 30, 2005
		(restated)				(restated)
Operating activities
Net income		$	16,998			$	7,587
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment			8,290				6,632
Amortization of intangible assets			7,026				6,320
Loss on disposal of equipment			47				—
Equity in (earnings) loss and amortization charges of investee			(3,202	)			1,378
Amortization of finance charges			1,806				553
Non cash derivative gain, net of non cash interest expense			(15,734	)			(2,038	)
Accretion of asset retirement obligation			110				—
Deferred rent			1,205				1,184
Deferred revenue			100				73
Deferred taxes			(2,444	)
Minority interests			152				357
Noncash compensation			598				266
Post retirement obligations			88				—
Other noncash expenses			—				221
Accrued interest expense on subordinated debt – related party			522				519
Accrued interest income on subordinated debt – related party			(424	)			(480	)
Changes in operating assets and liabilities:
Restricted cash			(177	)			—
Accounts receivable			(2,222	)			(4,546	)
Equipment lease receivable, net			994				789
Dividend receivable			145				—
Inventories			1,353				496
Prepaid expenses and other current assets			1,930				2,650
Accounts payable and accrued expenses			(4,425	)			(3,176	)
Income taxes payable			4,729				—
Due to manager			5,326				1,976
Other			610				(17	)
Net cash provided by operating activities			23,401				20,744
Investing activities
Acquisition of businesses and investments, net of cash acquired			(501,104	)			(49,594	)
Additional costs of acquisitions			(6	)			(72	)
Goodwill adjustment			—				694
Deposits and deferred costs on future acquisitions			(1,134	)			—
Purchases of property and equipment			(4,912	)			(3,364	)
Proceeds received on subordinated loan			611				686
Net cash used in investing activities			(506,545	)			(51,650	)

		Six Months Ended
		June 30, 2006				June 30, 2005
		(restated)				(restated)
Financing activities
Proceeds from long-term debt			160,000				32,000
Proceeds from line of credit facilities			277,901				543
Distributions paid to shareholders			(27,059	)			(15,898	)
Debt financing costs			(4,756	)			(1,674	)
Distributions paid to minority shareholders			(282	)			—
Payment of long-term debt			(72	)			(47	)
Offering costs			—				(1,934	)
Restricted cash			715				(1,077	)
Payment of notes and capital lease obligations			(990	)			(678	)
Net cash provided by financing activities			405,457				11,235
Effect of exchange rate changes on cash			367				(78	)
Net change in cash and cash equivalents			(77,320	)			(19,749	)
Cash and cash equivalents, beginning of period			115,163				140,050
Cash and cash equivalents, end of period		$	37,843			$	120,301
Supplemental disclosures of cash flow information:
Noncash investing and financing activity:
Accrued purchases of property and equipment		$	1,263			$	—
Accrued deposits and deferred costs on acquisitions		$	2,639			$	—
Acquisition of property through capital leases		$	1,667			$	1,417
Issuance of trust stock to manager for payment of March 2006 and December 2004 performance fees, respectively		$	4,134			$	12,088
Issuance of trust stock to independent directors		$	450			$	191
Income taxes paid		$	492			$	609
Interest paid		$	24,225			$	14,357

See accompanying notes to the consolidated condensed financial statements.

MACQUARIE INFRASTRUCTURE COMPANY TRUST

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

1. Organization and Description of Business

Macquarie Infrastructure Company Trust, or the Trust, a Delaware statutory trust, was formed on April 13, 2004. Macquarie Infrastructure Company LLC, or the Company, a Delaware limited liability company, was also formed on April 13, 2004. Prior to December 21, 2004, the Trust was a wholly-owned subsidiary of Macquarie Infrastructure Management (USA) Inc., or MIMUSA. MIMUSA, the Company’s Manager, is a subsidiary of the Macquarie Group of companies, which is comprised of Macquarie Bank Limited and its subsidiaries and affiliates worldwide. Macquarie Bank Limited is headquartered in Australia and is listed on the Australian Stock Exchange.

The Trust and the Company were formed to own, operate and invest in a diversified group of infrastructure businesses in the United States and other developed countries. The Company is the operating entity with a Board of Directors and other corporate governance responsibilities generally consistent with that of a Delaware corporation.

During the six months ended June 30, 2006, the Company’s major acquisitions were as follows:

     (i) On May 1, 2006, Macquarie Infrastructure Company Inc., or MIC Inc., a wholly-owned subsidiary of the Company, completed its acquisition of 50% of the shares in IMTT Holdings Inc., the holding company for a bulk liquid storage terminal business operating as International-Matex Tank Terminals, or IMTT.

     (ii) On June 7, 2006, MIC Inc. acquired The Gas Company, or TGC, a Hawaii limited liability company which owns and operates the sole regulated gas production and distribution business in Hawaii, as well as a propane sales and distribution business in Hawaii.

The Company owns airport services, airport parking, district energy and gas utility businesses and an interest in a bulk liquid storage terminal business, through the Company’s wholly-owned subsidiary, MIC Inc. The investments in Macquarie Communications Infrastructure Group, a listed Australian communications fund, South East Water, a water utility company and a business that operates a toll road in the United Kingdom are owned by the Company through separate Delaware limited liability companies.

2. Basis of Presentation

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the quarter and six months ended June 30, 2006 are not necessarily indicative of the results that may be expected for the year ending December 31, 2006.

The consolidated balance sheet at December 31, 2005 has been derived from audited financial statements but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.

The interim financial information contained herein should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2005 included in the Company’s Annual Report on Form 10 K/A.

3. Significant Accounting Policies

Included below are certain significant accounting polices, relating to TGC, which was acquired on June 7, 2006. These policies should be read in conjunction with TGC’s audit report included in Form 8-K/A filed on June 27, 2006.

Regulatory Assets and Liabilities

The regulated utility operations of TGC are subject to regulations with respect to rates, service, maintenance of accounting records, and various other matters by the Hawaii Public Utilities Commission, or HPUC. The established accounting policies recognize the financial effects of the ratemaking and accounting practices and policies of the HPUC. Regulated utility operations are subject to the provisions of SFAS No. 71, Accounting for the Effects of Certain Types of Regulation. SFAS No. 71 requires regulated entities to disclose in their financial statements the authorized recovery of costs associated with regulatory decisions. Accordingly, certain costs that otherwise would normally be charged to expense may, in certain instances, be recorded as an asset in a regulated entity’s balance sheet. TGC records regulatory assets for costs that have been deferred for which future recovery through customer rates has been approved by the HPUC. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to the customers through the rate-making process as approved by the HPUC.

TGC continuously monitors the applicability of SFAS No. 71. SFAS No. 71 may, at some future date, be deemed inapplicable because of changes in the regulatory and competitive environments and/or decision by TGC to accelerate deployment of new technologies. If TGC were to discontinue the application of SFAS No. 71, TGC would be required to write off its regulatory assets and regulatory liabilities and would be required to adjust the carrying amount of any other assets, including property, plant and equipment, that would be deemed not recoverable related to these affected operations. TGC believes its regulated operations continue to meet the criteria of SFAS No. 71 and that the carrying value of its regulated property, plant and equipment is recoverable in accordance with established HPUC ratemaking practices.

Revenue Recognition

TGC recognizes revenue when the services are provided. Sales of gas to customers are billed on a monthly cycle basis. Earned but unbilled revenue is accrued for and included in accounts receivable and revenue, based on the amount of gas that is delivered but not billed to customers from the latest meter reading or billed delivery date to the end of an accounting period, and the related costs are charged to expense. Most revenue is based upon consumption, however, certain revenue is based upon a flat rate.

Union Pension Plan

TGC maintains a union pension plan, “Pension Plan for Classified Employees of GASCO, Inc.”, or the Plan, and continues to accrue benefits pursuant to the terms of the applicable collective bargaining agreement. The Plan is non-contributory and covers all union employees who have met certain service and age requirements. The benefits are based on a flat rate per year of service and date of employment termination. Future contributions will be made to meet ERISA funding requirements. The Plan’s trustee, First Hawaiian Bank, handles the Plan’s assets and invests them in a diversified portfolio of equity and fixed-income securities. The projected benefit obligation and the fair value of Plan assets at April 30, 2006 was $27.8 million and $24.0 million, respectively. In addition the discount rate used was 6.25%. Additional information about the Plan is included in the Company’s Form 8-K/A filed on June 27, 2006.

Recently Issued Accounting Standards

In May 2005, the Financial Accounting Standards Board, or FASB, issued SFAS No. 154, Accounting Changes and Error Corrections, which replaces APB Opinion No. 20, Accounting Changes, and SFAS No. 3, Reporting Accounting Changes in Interim Financial Statements, and provides guidance on the accounting for and reporting of accounting changes and error corrections. SFAS No. 154 applies to all voluntary changes in accounting principle and requires retrospective application (a term defined by the statement) to prior periods’ financial statements, unless it is impracticable to determine the effect of a change. It also applies to changes required by an accounting pronouncement that does not include specific transition provisions. In addition, SFAS No. 154 redefines restatement as the revising of previously issued financial statements to reflect the correction of an error. The statement is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. The Company adopted SFAS No. 154 on January 1, 2006 and there was no material impact from this adoption.

In July 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, or the Interpretation. The Interpretation requires that realization of an uncertain income tax position must be “more likely than not” (i.e., greater than 50% likelihood of receiving a benefit) before it can be recognized in the financial statements. Further, the Interpretation prescribes the benefit to be recorded in the financial statements as the amount most likely to be realized assuming a review by tax authorities having all relevant information and applying current conventions. The Interpretation also clarifies the financial statement classification of tax-related penalties and interest and sets forth new disclosures regarding unrecognized tax benefits. The Interpretation is effective in the first quarter 2007 and the Company plans to adopt the Interpretation when required. The Interpretation is currently being evaluated for its full impact. At this time, the Company believes it has properly and adequately provided for all income tax positions and therefore expects minimal impact from adopting the Interpretation.

Derivative Instruments

The Company accounts for derivatives and hedging activities in accordance with FASB Statement No. 133, Accounting for Derivative Instruments and Certain Hedging Activities, as amended (SFAS 133), which requires that all derivative instruments be recorded on the balance sheet at their respective fair values.

For all derivatives eligible for hedge accounting, on the date a derivative contract is entered into, the Company designates the derivative as either a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge), a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge), a foreign-currency fair-value or cash-flow hedge (foreign currency hedge). For all hedging relationships the Company formally documents the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed, and a description of the method of measuring ineffectiveness. This process includes linking all derivatives that are designated as fair-value, cash-flow, or foreign-currency hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a fair-value hedge, along with the loss or gain on the hedged asset or liability or unrecognized firm commitment of the hedged item that is attributable to the hedged risk, are recorded in earnings. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. Changes in the fair value of derivatives that are highly effective as hedges and that are designated and qualify as foreign-currency hedges are recorded in either earnings or other comprehensive income, depending on whether the hedge transaction is a fair-value hedge or a cash-flow hedge. The ineffective portion of the change in fair value of a derivative instrument that qualifies as either a fair-value hedge or a cash-flow hedge is reported in earnings.

The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised, the derivative is no longer designated as a hedging instrument, because it is unlikely that a forecasted transaction will occur, a hedged firm commitment no longer meets the definition of a firm commitment, or management determines that designation of the derivative as a hedging instrument is no longer appropriate.

In all situations in which hedge accounting is discontinued or when the Company elects not to elect hedge accounting, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the Company no longer adjusts the hedged asset or liability for changes in fair value. The adjustment of the carrying amount of the hedged asset or liability is accounted for in the same manner as other components of the carrying amount of that asset or liability. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Company removes any asset or liability that was recorded pursuant to recognition of the firm commitment from the balance sheet, and recognizes any gain or loss in earnings. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the Company recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income.

As discussed in Note 18, the Company’s derivatives did not qualify for hedge accounting for the quarter and six months ended June 30, 2006 and June 30, 2005. Changes in the fair value of these derivatives are recorded as unrealized gains (loss) in the consolidated income statement.

4. Earnings Per Share

The following is a reconciliation of the basic and diluted number of shares used in computing earnings per share:

		Quarter Ended June 30,								Six Months Ended June 30,
		2006				2005				2006				2005
Weighted average number of shares of trust stock outstanding: basic			27,062,201				26,960,560				27,056,505				26,786,298
Dilutive effect of restricted stock unit grants			10,815				23,600				13,330				11,865
Weighted average number of shares of trust stock outstanding: diluted			27,073,016				26,984,160				27,069,835				26,798,163

The effect of potentially dilutive shares is calculated by assuming that the restricted stock unit grants issued to the independent directors had been fully converted to shares on the date of vesting.

5. Acquisitions

     The Gas Company

On June 7, 2006, the Company, through a wholly-owned subsidiary, completed its acquisition of K-1 HGC Investment, L.L.C. (subsequently renamed Macquarie HGC Investment LLC), which owns HGC Holdings LLC, or HGC, and The Gas Company, LLC, or TGC.

TGC is Hawaii’s only full-service gas-energy company. TGC provides both utility (regulated) and non-utility (unregulated) gas distribution services on the six primary islands in the state of Hawaii. The utility business includes production, distribution and sales of Synthetic Natural Gas, or SNG, on the island of Oahu and distribution and sale of Liquefied Petroleum Gas, or LPG, to customers on all six major Hawaiian islands. This acquisition enabled the Company to enter the gas utility and services business as an established competitor with an existing customer base and corporate infrastructure.

The cost of the acquisition, including working capital adjustments and transaction costs was $267.8 million. In addition, the Company incurred financing costs and integration expenses of approximately $3.4 million and $261,000, respectively. The purchase price was reduced by a working capital adjustment due from the seller of approximately $4.4 million. This amount is recorded as other receivables in the accompanying consolidated condensed balance sheet at June 30, 2006. The acquisition was funded with $160.0 million of new subsidiary-level debt, $99.0 million of funds drawn by MIC Inc. under the revolving portion of its acquisition credit facility and the balance was funded with cash.

Macquarie Securities (USA) Inc., or MSUSA, a subsidiary of Macquarie Bank Limited, acted as financial advisor to the Company on the transaction, including the debt financing arrangements, for which it received approximately $5.0 million for fees and expenses (included in the transaction and financing costs discussed above).

The acquisition has been accounted for under the purchase method of accounting. Accordingly, the results of operations of TGC are included in the accompanying consolidated condensed income statement since June 7, 2006.

The preliminary allocation of the purchase price, including transaction costs, was as follows (in thousands):

Current assets		$	42,297
Property, equipment and leasehold improvements			127,075
Intangible assets:
Customer relationships			7,400
Trade name			8,500
Real estate leases			100
Goodwill			120,361
Other assets			3,633
Total assets acquired			309,366
Current liabilities			19,867
Deferred income taxes			13,227
Other liabilities			12,948
Net assets acquired		$	263,324

The Company paid more than the fair value of the underlying net assets as a result of the expectation of its ability to earn a higher rate of return from the acquired business than would be expected if those net assets had to be acquired or developed separately. The value of the acquired intangible assets was determined by taking into account risks related to the characteristics and applications of the assets, existing and future markets and analyses of expected future cash flows to be generated by the business.

The Company allocated $7.4 million of the purchase price to customer relationships in accordance with EITF 02-17, “Recognition of Customer Relationship Intangible Assets Acquired in a Business Combination.” The Company will amortize the amount allocated to customer relationships over a nine-year period.

     International-Matex Tank Terminals

On May 1, 2006, the Company, through a wholly-owned subsidiary, completed its purchase of newly issued common stock of IMTT Holdings, Inc., formerly known as Loving Enterprises, Inc., for a purchase price of $250.0 million plus approximately $7.0 million in transaction related costs. As a result of the closing of the transaction, the Company owns 50% of IMTT Holdings’ issued and outstanding common stock. The balance of the common stock of IMTT Holdings continues to be held by the shareholders who held 100% of IMTT Holdings’ stock prior to the Company’s acquisition.

IMTT Holdings is the ultimate holding company for a group of companies and partnerships that own International-Matex Tank Terminals, or IMTT. IMTT is the owner and operator of eight bulk liquid storage terminals in the United States and the part owner and operator of two bulk liquid storage terminals in Canada. IMTT is one of the largest companies in the bulk liquid storage terminal industry in the United States, based on capacity.

IMTT Holdings distributed as a dividend $100.0 million of the proceeds from the newly-issued stock, to the shareholders who held 100% of IMTT Holdings’ stock prior to the Company’s acquisition. The remaining $150.0 million, less approximately $5.0 million that was used to pay fees and expenses incurred by IMTT in connection with the transaction, will be used ultimately to finance additional investment in existing and new facilities.

The Company financed the investment and the associated transaction costs with $82.0 million of available cash and $175.0 million of borrowings under the revolving acquisition facility of MIC Inc.

MSUSA acted as financial advisor to the Company on the transaction for which it received fees totaling $4.2 million.

The investment in IMTT has been accounted for under the equity method of accounting.

     Pro Forma Information

The following unaudited pro forma information summarizes the results of operations for the six months ended June 30, 2006 as if the acquisitions of TGC and IMTT had been completed as of January 1, 2006. The pro forma data give effect to actual operating results prior to the acquisitions and adjustments to interest expense, amortization, depreciation and income taxes. No effect has been given to cost reductions or operating synergies in this presentation. These pro forma amounts do not purport to be indicative of the results that would have actually been achieved if the acquisitions had occurred as of the beginning of the periods presented or that may be achieved in the future.

Pro forma consolidated revenues and net income for the six months ended June 30, 2006, if the acquisitions of TGC and IMTT had occurred on January 1, 2006, would have been $264.1 million and $20.3, respectively. Basic and diluted earnings per share would have been $0.75 if such acquisitions had occurred on January 1, 2006.

6. Property, Equipment, Land and Leasehold Improvements

Property, equipment, land and leasehold improvements consist of the following (in thousands):

		June 30, 2006				December 31,
		(unaudited)				2005
Land		$	63,358			$	62,520
Easements			9,861				5,624
Buildings			35,559				32,866
Leasehold and land improvements			123,104				108,726
Machinery and equipment			242,008				132,196
Furniture and fixtures			4,628				1,920
Construction in progress			10,423				3,486
Property held for future use			1,374				1,196
Other			1,471				764
			491,786				349,298
Less: Accumulated depreciation			(30,472	)			(14,179	)
Property, equipment, land and leasehold improvements, net		$	461,314			$	335,119

7. Intangible Assets

Intangible assets consist of the following (in thousands):

		Weighted
		Average Life				June 30, 2006				December 31,
		(Years)				(unaudited)				2005
Contractual arrangements			32			$	237,572			$	237,572
Non-compete agreements			2.8				4,835				4,835
Customer relationships			9.6				34,040				26,640
Leasehold rights			13.5				8,360				8,259
Trade names		Indefinite (1)					34,674				26,175
Domain names		Indefinite (1)					8,307				8,307
Technology			5				460				460
							328,248				312,248
Less: Accumulated amortization							(19,787	)			(12,761	)
Intangible assets, net						$	308,461			$	299,487

8. Long-Term Debt

The Company capitalizes its operating businesses separately using non-recourse, project finance style debt. At June 30, 2006, the Company had no indebtedness outstanding at the MIC LLC or Trust level. Indebtedness at the MIC Inc. level is discussed below.

Long-term debt consisted of the following (in thousands):

		June 30, 2006
		(unaudited)				December 31, 2005
MIC Inc. acquisition facility (1)		$	274,022			$	—
Airport services debt (2)			300,000				300,000
MDE senior notes (3)			120,000				120,000
PCAA (various) loan payable (4)			125,448				125,448
PCAA Chicago loan payable (4)			4,523				4,574
PCAA SP loan payable (4)			58,740				58,740
RCL Properties loan payable (4)			2,210				2,232
TGC loans payable			160,000				—
TGC revolving facility			2,000				—
			1,046,943				610,994
Less: current portion			(2,146	)			(146	)
Long-term portion		$	1,044,797			$	610,848

MIC Inc.

On May 9, 2006, MIC Inc. amended its revolving credit facility to increase the revolving portion of the facility by $50.0 million for a total of $300.0 million and to provide for a term loan of $180.0 million to finance the Trajen acquisition, increasing the total amount of borrowings available under this facility to $480.0 million. Refer to Note 17, Subsequent Events, for further discussion on the Trajen acquisition and the borrowings to finance the acquisition which occurred subsequent to June 30, 2006. Amounts borrowed and repaid under the term loan portion of this facility may not be reborrowed. The interest margin under the facility is LIBOR plus 2% or the base rate plus 1%, increasing by 0.50% in six months and again in 12 months, up to a maximum of LIBOR plus 3% or the base rate plus 2%. The current margin on outstanding borrowings is LIBOR plus 2%. Once the term loan borrowings have been repaid in full, the interest rate on the amended acquisition facility will decrease to LIBOR plus 1.25% or the base rate plus 0.25%. The amended acquisition facility requires an annual commitment fee equal to 20% of the applicable LIBOR margin on the average daily undrawn balance (initially 0.40%). The amended acquisition facility also includes the following additional covenants and restrictions:

	•		a restriction on incurring additional debt at the Company or MIC Inc. level prior to term loan repayment; and
	•		an increase in the maximum leverage ratio to 6.8x through the end of 2006, declining to 6.1x through March 31, 2008, returning to 5.6x thereafter or upon term loan repayment.

All other material terms of the amended acquisition facility remain unchanged from the original revolving facility, including the interest coverage ratio covenant. The MIC Inc. acquisition facility will continue to be secured solely by pledges of the equity interests in the direct subsidiaries of the Company and MIC Inc.

The Company expects to repay all of the outstanding borrowings under this facility with the proceeds from an equity capital raising to be concluded at management’s discretion, depending on prevailing market conditions, at any time prior to the maturity of the debt at March 31, 2008.

MSUSA acted as financial advisor to the Company in connection with the increase in the facility for which fees of $575,000 were accrued during the six months ended June 30, 2006. Macquarie Bank Limited, one of the lenders under this facility received fees of $250,000 in connection with the increase in the facility.

On April 28, 2006, MIC Inc. borrowed $175.0 million under its acquisition facility to finance the acquisition of a 50% interest in IMTT Holdings, Inc, of which Macquarie Bank Limited provided $70.0 million. In addition, on June 7, 2006, MIC Inc. borrowed $99.0 million under the same facility to partially finance the acquisition of The Gas Company, of which Macquarie Bank Limited provided $30.0 million.

The Gas Company

The acquisition of TGC was partially financed with $160.0 million of term loans borrowed under two amended and restated loan agreements dated as of June 7, 2006. One of these loan agreements provides for an $80.0 million term loan borrowed by HGC, the parent company of TGC. The other loan agreement provides for an $80.0 million term loan borrowed by TGC and a $20 million revolving credit facility, including a $5 million letter of credit facility. The counterparties to each agreement are Dresdner Bank AG, London Branch, as administrative agent, Dresdner Kleinwort Wasserstein Limited, as lead arranger, and the other lenders party thereto. TGC generally intends to utilize the $20.0 million revolving credit facility to finance its working capital and to finance or refinance its capital expenditures for regulated assets. As of June 30, 2006, TGC had borrowed $2.0 million under the $20.0 million revolving credit facility. This amount was repaid in July 2006. Additionally, as of June 30, 2006, TGC had $300,000 letters of credit outstanding against this facility.

The obligations under the credit agreements are secured by security interests in the assets of TGC as well as the equity interests of TGC and HGC. The terms and conditions for the facilities includes events of default and representations and warranties that are generally customary for facilities of this type. Select details of the term and revolving credit facilities are summarized below:

		Holding Company Debt		Operating Company Debt
		HGC Holdings LLC		The Gas Company, LLC
Borrowings:		$80.0 million Term Loan		$80.0 million Term Loan		$20.0 million Revolver
Security:		First priority security interest on HGC assets and equity interests		First priority security interest on TGC assets and equity interests
Term:		7 years		7 years		7 years
Amortization:		Payable at maturity		Payable at maturity		Payable at the earlier of 12 months or maturity
Interest: Years 1-5:		LIBOR plus 0.60%		LIBOR plus 0.40%		LIBOR plus 0.40%
Interest: Years 6-7:		LIBOR plus 0.70%		LIBOR plus 0.50%		LIBOR plus 0.50%
Hedging:		Interest rate swaps (fixed v. LIBOR) fixing funding costs at 4.84% for 7 years on a notional value of $160.0 million				—
Distributions Lock-Up Test:		—		12 mo. look-forward and 12 mo. look-backward adjusted EBITDA /interest < 3.5x		—
Mandatory Prepayments:		—		12 mo. look-forward and 12 mo. look-backward adjusted EBITDA/interest < 3.5x for 3 consecutive quarters		—
Events of Default Financial Triggers:				12 mo. look-backward adjusted EBITDA/interest < 2.5x		12 mo. look-backward adjusted EBITDA/interest < 2.5x

In addition to customary terms and conditions for secured term loan and revolving credit agreements, the agreements provide that TGC:

(1) may not incur more than $5.0 million of new debt; and

(2) may not sell or dispose of more than $10.0 million of assets per year.

Additionally, the HPUC, in approving the purchase of the business by us, required that HGC and TGC’s consolidated debt to total capital ratio may not exceed 65%.

North America Capital Holding Company, or NACH

Mizuho Corporate Bank, Ltd., The Governor and Company of Bank of Ireland, Bayerische Landesbank, New York Branch and Macquarie Bank Limited provided for a $180.0 million expansion of the NACH debt facility to finance the acquisition of Trajen. The term loan facility, previously $300.0 million due in December 2010, was increased to $480.0 million on terms that are substantially similar to those in place on the existing term loan facility, with the following exceptions: the trailing 12 month minimum earnings before interest, taxes, depreciation and amortization, or EBITDA, increased to $66.9 million in 2006, $71.9 million in 2007 and $77.5 million in 2008 and there is a requirement to hedge 100% of NACH’s interest rate exposure under this facility. The NACH credit facility will continue to be secured by all of the assets and stock of NACH and its subsidiaries, including Trajen and its subsidiaries following the closing. The following describes the terms of the interest rate swap entered with Macquarie Bank Limited:

Notional Principal Amount:		$180.0 million
Effective Date:		September 29, 2006
Termination Date:		December 12, 2010
Fixed Rate:		5.515%

The Company has interest-rate related and foreign-exchange related derivative instruments to manage its interest rate exposure on its debt instruments, and to manage its exchange rate exposure on its future cash flows from its non-U.S. investments. In addition, the Company used foreign exchange option contracts to acquire its stake in MYL and its investment in SEW. The Company does not enter into derivative instruments for any purpose other than interest rate hedging or cash-flow hedging purposes. That is, the Company does not speculate using derivative instruments.

By using derivative financial instruments to hedge exposures to changes in interest rates and foreign exchange rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties.

Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates or currency exchange rates. The market risk associated with interest rate is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

     Anticipated future cash flows

The Company entered into foreign exchange forward contracts for its anticipated cash flows in order to hedge the market risk associated with fluctuations in foreign exchange rates. The forward contracts limit the unfavorable effect that foreign exchange rate changes will have on cash flows. All of the Company’s forward contracts relating to anticipated future cash flows were initially designated as cash flow hedges. The maximum term over which the Company is currently hedging exposures to the variability of foreign exchange rates is 24 months.

Changes in the fair value of forward contracts designated as cash flow hedges that effectively offset the variability of cash flows associated with anticipated distributions are reported in other comprehensive income. These amounts subsequently are reclassified into other income or expense when the contract is expired or executed. Changes in the fair value of forward contracts not eligible for hedge accounting are reported in other income (loss) on the consolidated statement of income. In accordance with SFAS 133, the Company concluded that all of its forward exchange contracts did not qualify as cash flow hedges, as further discussed in Note 18.

     Debt Obligations

The Company has in place variable-rate debt. The debt obligations expose the Company to variability in interest payments due to changes in interest rates. Management believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, management enters into interest rate swap agreements to manage fluctuations in cash flows resulting from interest rate risk. These swaps change the variable-rate cash flow exposure on the debt obligations to fixed cash flows. Under the terms of the interest rate swaps, the Company receives variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed-rate debt for the portion of the debt that is swapped.

Changes in the fair value of interest rate swaps designated as hedging instruments that effectively offset the variability of cash flows associated with variable-rate, long-term debt obligations are reported in other comprehensive income. These amounts subsequently are reclassified into interest expense as a yield adjustment of the hedged interest payments in the same period in which the related interest affects earnings. Changes in the fair value of interest rate swaps not eligible for hedge accounting are reported in other income (loss) on the consolidated statement of income. In accordance with SFAS 133, the Company concluded that all of its interest rate swaps did not qualify as cash flow hedges, as further discussed in Note 18. The Company anticipates the interest rate swaps qualifying as hedges to be effective during the first quarter of 2007. The term over which the Company is currently hedging exposures relating to debt is through August 2013.

10. Comprehensive Income (Loss)

Total comprehensive income for the quarter and six months ended June 30, 2006 was $20.1 million and $28.9 million, respectively. These amounts are included in the accumulated other comprehensive income (loss) on the Company’s consolidated condensed balance sheet as of June 30, 2006. The difference between net income of $9.4 million for the quarter ended June 30, 2006 and comprehensive income is primarily attributable to an unrealized gain on marketable securities of $736,000, foreign currency translation adjustments of 8.4 million and an adjustment of $1.4 million relating to our equity investment. The difference between net income of $17.0 million for the six months ended June 30, 2006 and comprehensive income is primarily attributable to an unrealized gain on marketable securities of $2.7 million, foreign currency translation adjustments of $8.2 million, and an adjustment of $1.0 million relating to our equity investment and other.

11. Stockholders’s Equity

The Trust is authorized to issue 500,000,000 shares of trust stock, and the Company is authorized to issue a corresponding number of LLC interests. Unless the Trust is dissolved, it must remain the sole holder of 100% of the Company’s LLC interests and, at all times, the Company will have the identical number of LLC interests outstanding as shares of trust stock. Each share of trust stock represents an undivided beneficial interest in the Trust, and each share of trust stock corresponds to one underlying LLC interest in the Company. Each outstanding share of the trust stock is entitled to one vote for each share on any matter with respect to which members of the Company are entitled to vote.

12. Reportable Segments

The Company’s operations are classified into four reportable business segments: airport services business, airport parking business, district energy and the gas utility business. The gas utility business is a new segment in the quarter ended June 30, 2006, and the results included below are from the date of acquisition on June 7, 2006. All of the business segments are managed separately. During the prior year, the airport services business consisted of two reportable segments, Atlantic and AvPorts. These businesses are currently managed together. Therefore, they are now combined into a single reportable segment. Results for prior periods have been aggregated to reflect the new combined segment.

The airport services business reportable segment principally derives income from fuel sales and from airport services. Airport services revenue includes fuel related services, de-icing, aircraft parking, airport management and other aviation services. All of the revenue of the airport services business is derived in the United States. The airport services business operated 18 fixed base operations, or FBOs, and one heliport and managed six airports under management contracts as of June 30, 2006.

The revenue from the airport parking business reportable segment is included in service revenue and primarily consists of fees from off-airport parking and ground transportation to and from the parking facilities and the airport terminals. At June 30, 2006, the airport parking business operated 30 off-airport parking facilities located in California, Arizona, Colorado, Texas, Georgia, Tennessee, Missouri, Pennsylvania, Connecticut, New York, New Jersey, Ohio, Oklahoma and Illinois.

The revenue from the district energy business reportable segment is included in service revenue and financing and equipment lease income. Included in service revenue is capacity charge revenue, which relates to monthly fixed contract charges, and consumption revenue, which relates to contractual rates applied to actual usage. Financing and equipment lease income relates to direct financing lease transactions and equipment leases to the Company’s various customers. The Company provides such services to buildings throughout the downtown Chicago area and to the Aladdin Resort and Casino and shopping mall located in Las Vegas, Nevada.

The revenue from the gas utility business reportable segment is included in revenue from product sales and includes distribution and sales of SNG and LPG. Revenue is primarily a function of the volume of SNG and LPG consumed by customers and the price per thermal unit or gallon charged to customers. Because both SNG and LPG are derived from petroleum, revenue levels, without organic operating growth, will generally track global oil prices. TGC’s revenue includes fuel adjustment charges, or FACs, through which changes in fuel costs generally are passed through to customers.

Selected information by reportable segment is presented in the following tables (in thousands):

Revenue from external customers for the Company’s segments for the quarter ended June 30, 2006 are as follows:

		Airport				Airport				District				Gas
		Services				Parking				Energy				Utility (1)				Total
Revenue from Product Sales
Product sales		$	46,298			$	—			$	—			$	10,624			$	56,922
			46,298				—				—				10,624				56,922
Service Revenue
Other services			17,654				—				791				—				18,445
Cooling capacity revenue			—				—				4,241				—				4,241
Cooling consumption revenue			—				—				5,258				—				5,258
Parking services			—				19,782				—				—				19,782
			17,654				19,782				10,290				—				47,726
Financing and Lease Income
Financing and equipment lease			—				—				1,285				—				1,285
			—				—				1,285				—				1,285
Total Revenue		$	63,952			$	19,782			$	11,575			$	10,624			$	105,933

Financial data by reportable business segments are as follows (in thousands):

		Quarter Ended June 30, 2006																At June 30, 2006
		(unaudited)																(unaudited)
		(restated)
																		Property,
																		Equipment,
																		Land and
		Segment				Interest				Depreciation/				Capital				Leasehold
		Profit (2)				Expense				Amortization (3)				Expenditures				Improvements				Total Assets
Airport services		$	33,877			$	4,980			$	4,458			$	962			$	90,955			$	523,116
Airport parking			6,258				4,400				1,216				1,716				97,039				291,363
District energy			4,026				2,171				1,768				616				145,319				242,500
Gas utility (1)			3,130				644				430				128				128,001				319,277
Total		$	47,291			$	12,195			$	7,872			$	3,422			$	461,314				1,376,256

The above table does not include financial data for our equity and cost investments.

Reconciliation of total reportable segment assets to total consolidated assets at June 30, 2006 (in thousands):

Total assets of reportable segments		$	1,376,256
Equity and cost investments:
Investment in Yorkshire Link			77,960
Investment in SEW			37,971
Investment in MCG			72,462
Investment in IMTT			353,804
Corporate and other			347,609
Less: Consolidation entries			(298,589	)
Total consolidated assets		$	1,967,473

Reconciliation of total reportable segment profit to total consolidated income before income taxes and minority interests for the periods ended June 30, 2006 (in thousands):

						Six Months
		Quarter Ended				Ended June 30,
		June 30, 2006				2006
		(restated)				(restated)
Total reportable segment profit		$	47,291			$	87,184
Selling, general and administrative expenses			(24,294	)			(48,244	)
Fees to manager			(3,718	)			(10,196	)
Depreciation and amortization (1)			(5,701	)			(10,857	)
			13,578				17,887
Unrealized gains on derivative instruments			6,487				20,162
Other expense, net			(8,864	)			(17,888	)
Total consolidated income before income taxes and minority interests		$	11,201			$	20,161

Revenue from external customers for the Company’s segments for the quarter ended June 30, 2005 are as follows (in thousands):

		Airport Services				Airport Parking				District Energy				Total
Revenue from Product Sales
Product sales		$	34,150			$	—			$	—			$	34,150
			34,150				—				—				34,150
Service Revenue
Other services			12,629				—				642				13,271
Cooling capacity revenue			—				—				4,127				4,127
Cooling consumption revenue			—				—				5,365				5,365
Parking services			—				14,275				—				14,275
			12,629				14,275				10,134				37,038
Financing and Lease Income
Financing and equipment lease			—				—				1,331				1,331
			—				—				1,331				1,331
Total Revenue		$	46,779			$	14,275			$	11,465			$	72,519

Financial data by reportable business segments are as follows (in thousands):

		Quarter Ended June 30, 2005																At June 30, 2005
		(unaudited)																(unaudited)
																		Property,
																		Equipment,
																		Land and
		Segment				Interest				Depreciation/				Capital				Leasehold
		Profit (1)				Expense				Amortization(2)				Expenditures				Improvements				Total Assets
Airport services		$	25,522			$	3,359			$	3,705			$	1,566			$	77,515			$	459,368
Airport parking			4,087				2,293				1,155				515				67,667				205,642
District energy			3,709				2,078				1,786				404				149,457				251,430
Total		$	33,318			$	7,730			$	6,646			$	2,485			$	294,639				916,440

The above table does not include financial data for our equity and cost investments.

Reconciliation of total reportable segment assets to total consolidated assets at June 30, 2005 (in thousands):

Total assets of reportable segments		$	916,440
Equity and cost investments:
Investment in Yorkshire Link			72,125
Investment in SEW			36,819
Investment in MCG			79,273
Corporate and other			346,653
Less: Consolidation entries			(219,479	)
Total consolidated assets		$	1,231,831

Reconciliation of total reportable segment profit to total consolidated income before income taxes and minority interests for the periods ended June 30, 2005 (in thousands):

		Quarter Ended				Six Months Ended
		June 30, 2005				June 30, 2005
		(restated)				(restated)
Total reportable segment profit		$	33,318			$	64,885
Selling, general and administrative expenses			(18,941	)			(38,286	)
Fees to manager			(2,209	)			(4,152	)
Depreciation and amortization (1)			(4,655	)			(9,067	)
			7,513				13,380
Unrealized gain (loss) on derivative instruments			(2,305	)			2,038
Other expense, net			(974	)			(6,895	)
Total consolidated income before income taxes and minority interests		$	4,234			$	8,523

Revenue from external customers for the Company’s segments for the six months ended June 30, 2006 are as follows (in thousands):

		Airport				Airport				District				Gas
		Services				Parking				Energy				Utility (1)				Total
Revenue from Product Sales
Product sales		$	88,290			$	—			$	—			$	10,624			$	98,914
			88,290				—				—				10,624				98,914
Service Revenue
Other services			35,833				—				1,636				—				37,469
Cooling capacity revenue			—				—				8,430				—				8,430
Cooling consumption revenue			—				—				6,733				—				6,733
Parking services			—				37,998				—				—				37,998
			35,833				37,998				16,799				—				90,630
Financing and Lease Income
Financing and equipment lease			—				—				2,583				—				2,583
			—				—				2,583				—				2,583
Total Revenue		$	124,123			$	37,998			$	19,382			$	10,624			$	192,127

Financial data by reportable business segments are as follows (in thousands):

		Six Months Ended June 30, 2006
		(unaudited) (restated)
		Segment								Depreciation/				Capital
		Profit (2)				Interest Expense				Amortization (3)				Expenditures
Airport services		$	66,447			$	14,000			$	8,871			$	1,512
Airport parking			11,039				8,301				2,487				2,163
District energy			6,568				4,316				3,528				1,109
Gas utility (1)			3,130				644				430				128
Total		$	87,184			$	27,261			$	15,316			$	4,912

The above table does not include financial data for our equity and cost investments.

Revenue from external customers for the Company’s segments for the six months ended June 30, 2005 are as follows (in thousands):

		Airport Services				Airport Parking				District Energy				Total
Revenue from Product Sales
Product sales		$	64,391			$	—			$	—			$	64,391
			64,391				—				—				64,391
Service Revenue
Other services			27,332				—				1,364				28,696
Cooling capacity revenue			—				—				8,186				8,186
Cooling consumption revenue			—				—				6,724				6,724
Parking services			—				27,584				—				27,584
			27,332				27,584				16,274				71,190
Financing and Lease Income
Financing and equipment lease			—				—				2,673				2,673
			—				—				2,673				2,673
Total Revenue		$	91,723			$	27,584			$	18,947			$	138,254