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Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for the third quarter of 2012 including proportionately combined free cash flow of $32.1 million or $0.69 per share. Proportionately combined free cash flow decreased 12.7% compared with the third quarter of 2011 primarily as a result of a swap break payment incurred in connection with the previously disclosed refinancing of debt facilities at Hawaii Gas.
For the nine months ended September 30, 2012 proportionately combined free cash flow increased 9.8% to $2.57 per share compared with $2.34 per share for the nine months ended September 30, 2011.
“I am pleased we were able to increase the dividend on the back of these results. MIC now expects to generate proportionately combined free cash flow of approximately $3.51 per share for the full year, and $3.70 per share as previously indicated, normalized for the swap break payment,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company LLC.
“While the refinancing payment at Hawaii Gas reduced our headline result, the underlying growth in proportionately combined free cash flow in the third quarter was strong and we have not seen any significant slowing in our business,” Hooke added.
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.
MIC notes that free cash flow does not fully reflect its ability to freely deploy generated cash, as it does not reflect required principal payments on indebtedness, payments of dividends, potential growth capital expenditures and other fixed obligations or the other cash items excluded when calculating free cash flow. Free cash flow may be calculated differently 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. See “Cash Generation” below for MIC’s definition of free cash flow and further information.