Macquarie Infrastructure Company Reports First Quarter 2008 Financial Results

Business Wire,  May 8, 2008  

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Growth in Airport Services Drives Increased Distributable Cash

Net Swings to Loss on Non-Cash Expenses of Investee

Increased Quarterly Dividend of $0.645 Per Share Declared

NEW YORK -- Macquarie Infrastructure Company (NYSE: MIC), a leader in the ownership and operation of U.S. infrastructure businesses, reported consolidated revenue of $278.7 million and a net loss of $2.0 million for the first quarter of 2008.

* Revenue increased 65% compared to the first quarter of 2007 on improved performance by MIC's businesses generally and contributions from acquisitions completed in 2007.

* The net loss for the quarter was primarily the result of higher non-cash expenses including derivatives losses incurred by International Matex Tank Terminals (IMTT), a business in which MIC holds a 50% interest and depreciation and amortization resulting from acquisitions completed in 2007. MIC reported net income of $7.9 million for the first quarter of 2007.

Reported gross profit increased 50% to $112.6 million for the quarter compared to $75.2 million in 2007. Analysis of gross profit, or revenues less costs of goods sold/sales, provides additional insight into the performance of the Company by removing the volatility in revenue associated with costs that are typically passed through to customers by infrastructure businesses.

MIC also reported a year over year increase in estimated cash available for distribution ("CAD"). CAD for the quarter increased to $30.8 million, or by 10%, over the $28.0 million generated in the first quarter of 2007.

CAD is a non-GAAP measure used by the Company to estimate its ability to sustain and increase its quarterly dividend. CAD is based on cash from operating activities less financed capital expenditures, plus the cash dividend received from an unconsolidated business recorded in cash from investing activity.

On the strength of the improvement in estimated cash available for distribution, the Company will pay a cash dividend of $0.645 per share for the first quarter of 2008. The dividend of $0.645 per share represents a 9.3% increase over the $0.59 per share paid for the first quarter of 2007 and the eighth consecutive quarterly increase. The dividend will be paid on June 10, 2008 to shareholders of record on June 4, 2008.

"Our businesses have again demonstrated an ability to generate growing amounts of distributable cash, even against the backdrop of a challenging economic environment" said Peter Stokes, Chief Executive Officer of Macquarie Infrastructure Company. "We're pleased to be able to share that growth with investors in the form of an increased dividend."

OPERATING BUSINESSES PERFORMANCE HIGHLIGHTS

MIC reports EBITDA and contribution margin, both of which are non-GAAP financial measures, as it considers them to be important indicators of overall performance. The attached tables provide a reconciliation of EBITDA to net income, and contribution margin to revenue. The Company believes that EBITDA, net of other non-cash and non-recurring items, also provides insight into the performance of certain of its operating companies and their ability to generate distributable cash. The reporting of contribution margin by the gas production and distribution business provides additional insight into the performance of that business net of changes in feedstock (naptha) prices that typically are recovered in revenue.

[TABLE OMITTED]

ESTIMATED CASH AVAILABLE FOR DISTRIBUTION

The Company believes that it can provide better insight into its ability to support its distributions by making certain adjustments to its "as reported" results. For example, its results under Generally Accepted Accounting Principles ("GAAP") alone do not reflect all of the items that management considers in estimating distributable cash. The table below summarizes MIC's estimated cash available for distribution ("CAD"), beginning with cash from operations and adjusted for certain dividend income and cash expenditures.

Estimated cash available for distribution totaled $30.8 million for the quarter; a 10% increase over the $28.0 million generated in the first quarter of 2007.

($ Millions)                                  <
Total









                                              <










Cash from operations                          <
$14.10









Cash from operations adjustments              <
$5.20









Cash from investing and financing activities  <
$4.56









Working capital                               <
$6.92









Estimated Cash Available for Distribution     <
$30.78

MIC's consolidated cash from operations decreased to $14.1 million in the first quarter of 2008 from $27.6 million in the first quarter of 2007. Factors contributing to the lower cash from operations compared to the first quarter in 2007 include:

* a $10.8 million increase in working capital balances, mainly from higher accounts receivable balances due to higher fuel prices and timing;