Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for the second quarter of 2012 including an announcement that the Company’s Board approved an increase in its quarterly cash dividend from $0.20 per share for the first quarter of 2012 to $0.625 per share for the second quarter of 2012 or $2.50 per share annualized.
MIC’s businesses generated proportionately combined free cash flow of $43.5 million or $0.93 per share during the period, compared with $34.2 million or $0.75 per share in the second quarter of 2011. For the six months ended June 30, 2012 proportionately combined free cash flow increased 21.3% to $1.88 per share compared with $1.55 per share for the six months ended June 30, 2011.
The increase in the Company’s dividend was anticipated. Management had indicated in May that with the receipt of $110.6 million in distributions from its investment in International-Matex Tank Terminals the dividend would be increased to “at least $2.00” per share annually. The second quarter dividend will be payable on August 16, 2012 to shareholders of record on August 13, 2012.
“I am extremely pleased with our Board’s decision to increase the quarterly cash dividend to an annualized $2.50 per share,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC, “and I am pleased to be able to back that decision by increasing our guidance on proportionately combined free cash flow to approximately $3.70 per share for 2012.” The Company had previously indicated that proportionately combined free cash flow would be between $3.50 and $3.60 per share in calendar 2012.
MIC regards free cash flow as an important tool in assessing the performance of its capital intensive, cash generative businesses. Proportionately combined free cash flow refers to the sum of the free cash flow generated by MIC’s businesses and investments in proportion to its equity interest in each and after holding company costs. See “Cash Generation” below for MIC’s definition of free cash flow and further information.