Macquarie Infrastructure Company LLC Q1 2010 Earnings Call Transcript
I’ll begin our update this morning with a quick overview of our results. Two things stand out for this period. First, the overall performance of our bulk liquid storage business IMTT was outstanding. In the key area of cash generation, IMTT reported a year-over-year increase in free cash flow of 53%. The performance reflects the continued strong demand for storage and increasing capacity utilization and the contribution from projects completed during the past year.
Second, at Atlantic Aviation, the favorable trend in general aviation jet flight activity that began in the middle of 2009 continued through the first quarter of 2010. Activity on the airports which we operate was up 11% for the first three months of 2010 compared with 2009. The momentum was favorable within the quarter with activity up 14% in March compared with March in 2009.
As a result, fuel sales were up and although margins were down slightly, active management of the business produced free cash flow of more than $13 million for the quarter. That’s more than double the amount generated in the first quarter of 2009. In all, our businesses produced $36.7 million in free cash flow in the first quarter or approximately $0.81 per share.
This is an excellent result for MIC for the first quarter and provides a solid basis on which to build in 2010. I would suggest, however, that this figure should probably not be annualized for reasons I’ll go into in a moment.Following some additional prepared remarks, we’ll take your questions about MIC’s performance and prospects. I’ll begin by providing some additional color on MIC’s operating performance during the quarter as well as commentary on some of the key elements of our consolidated results. I will also have a few observations on our prospects for the balance of 2010. As most of you know by now, MIC is a cash driven story. As reported in our results press release last night, we enjoyed continued strong performance from our operating businesses during the first quarter. The cash produced in our businesses in the manner we employed during our full year 2009 results call in February. Read the rest of this transcript for free on seekingalpha.com
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