Macquarie Infrastructure Q4 revenue up 55.5%

Combined free cash flow per share increased 54.2 percent for the quarter and 18.6 percent year over year.

Macquarie Infrastructure Company (MIC) on Wednesday reported consolidated full-year revenue of $1.35 billion for 2014 as compared to $1.04 billion in 2013, a 29.8 percent increase, with quarterly revenue up 55.5 percent to just over $405 million from $260.5 million in Q4 2013.

Gains were attributed to the firm's successful acquisition of International-Matex Tank Terminals (IMTT), an increased level of services delivered by Atlantic Aviation, increased contribution from the company's contracted power and energy segment via the August sale of a Chicago district energy business, and improved IMTT performance. 

“Our results for the quarter and full year were considerably ahead of expectations, driven by some very good work on the integration of IMTT, particularly as it pertains to maintenance capital expenditures, and continued stronger operating performance across our portfolio,” said MIC's chief executive James Hooke in a statement. 

Reported gross profit was up 88.5 percent for the quarter and 45.2 percent for the full year. Consolidated Q4 and full-year net incomes of $18.7 million and $1.07 billion, respectively, were up from $14.1 million (just shy of the full-year net income in 2012) and $28.1 million for the same periods in 2013.  

The company reported a “modest” net loss for tax purposes, attributed mainly to performance fees incurred, increasing federal Net Operating Loss (NOL) carryforward balance at the end of 2014 to approximately $250.7 million, which the release said will offset current federal income tax liability until after 2017 with the exclusion of the Alternate Minimum Tax. 

Looking forward to 2015, MIC expects that improved performance of businesses in its portfolio along with the pending acquisition of the Bayonne Energy Center (BEC) in Bayonne, New Jersey, will support a significant increase of cash dividends, subject to continued stable performance and market conditions. 

“Taking into consideration both our 2014 results and our recently announced pending transaction involving Bayonne Energy Center (BEC), we now expect to guarantee growth in our quarterly cash dividend of approximately 14 percent year over year for at least the next two years,” Hooke said. 

Expected to make a significant impact in MIC's ability to attract investors is its current plan to convert the company from a limited liability company (LLC) to a corporation, a conversion for which paperwork was filed concurrent with the earnings release. MIC previously converted from a listed trust to an LLC in 2007.

“The conversion from an LLC to a corporation will open MIC up to possible inclusion in certain equity indices,” Hooke said. “While we will continue to explore other tax efficient structures for MIC and our assets, we believe the best first step is the conversion to a corporation.”

MIC's total assets reported in the release totaled more than $6.6 billion as of December 31, 2014, as compared to approximately $2.5 billion on the same day in 2013.  

In 2014, the company issued 14.8 million shares of its stock, with 13.2 million of those related to the IMTT acquisition, including those issued to the company's manager upon reinvestment of management and performance fees.