Macquarie Infrastructure Company LLC (NYSE: MIC) reported financial results for the second quarter of 2014 including confirmation of the Company’s previously announced increase in its quarterly cash dividend to $0.95 per share. MIC paid a cash dividend of $0.9375 per share in the first quarter of 2014.
The increase in the dividend was first made public on July 7, 2014 in connection with MIC’s announcement that it had reached an agreement to acquire the remaining 50% interest in International-Matex Tank Terminals (“IMTT”) that it did not already own. The increase in its quarterly cash dividend is the third by MIC in as many quarters.
“We’re confident in the expected increased contribution from IMTT over the remainder of the year and pleased that our Board has increased our quarterly cash dividend,” said James Hooke, Chief Executive Officer of MIC.
MIC generated proportionately combined Free Cash Flow of $56.7 million in the second quarter, up 21.5% from the $46.7 million in the comparable quarter in 2013. For the six months ended June 30, 2014, MIC’s proportionately combined Free Cash Flow increased by 13.8% to $121.6 million, from $106.8 million in 2013.
On a per share basis, the absolute increase in proportionately combined Free Cash Flow was partially offset by an increase in the Company’s weighted average number of shares outstanding of 11.1% and 14.7% for the quarter and year to date periods, respectively, and transaction-related costs pertaining primarily to acquisitions concluded by MIC’s Atlantic Aviation business. Consequently, MIC generated proportionately combined Free Cash Flow per share of $1.00 per share during the second quarter of 2014, and $2.15 per share in the year to date period. The Company generated $0.92 per share and $2.17 per share, in the comparable quarter and year to date periods in 2013.
The decline in proportionately combined Free Cash Flow per share to $2.15 for the six months ended June 30, 2014 compared with $2.17 for the six months ended June 30, 2013 was attributed primarily to, (1) a $0.16 per share increase in cash taxes at IMTT, and (2) a delay in the closing of an acquisition by MIC’s Atlantic Aviation business (while the Galaxy Acquisitions closed on April 30, the incremental shares to fund the transaction were issued in late 2013).