Macquarie Infrastructure Company, a market leader in the ownership and operation of U.S. infrastructure businesses, today reported its third quarter and year to date financial results.
Financial HighlightsMIC's businesses generated estimated Cash Available for Distribution ("CAD") of $29.0 million or $0.645 per share in the third quarter. CAD for the comparable quarter in 2007 was $27.1 million, or $0.60 per share. For the nine month period, CAD increased 12% to $89.0 million from $79.4 million over the comparable period in 2007. The Company believes that CAD, a non-GAAP measure, provides additional insight into its operating performance and generation of cashflow.
The Company's consolidated gross profit increased 9% in the third quarter to $103.0 million from $94.2 million in the third quarter of 2007. Through nine months consolidated gross profit increased 32% on contributions from businesses acquired in 2007. Gross profit, or revenue less costs of goods sold/sales, removes the volatility in revenue associated with expenses that are typically paid by customers of infrastructure businesses.
Airport Parking Business - Performance and OutlookGross profit at the airport parking business decreased 31% to $3.3 million in the third quarter of 2008 compared with the third quarter in 2007. EBITDA decreased by $1.4 million to $2.7 million for the same period.
The number of cars exiting our facilities, declined 7.2% compared with the prior comparable quarter. The impact on revenue was partially offset by an increase in the average ticket price of about 1%. A year to date decline in cars exiting our facilities of 3.4% is consistent with the overall decline in enplanements stemming from commercial airline capacity reductions.
Management has successfully implemented price increases in those markets where demand has been strongest and undertaken marketing initiatives that are expected to drive increases in activity, particularly through internet partners.
Selling, general and administrative costs were higher primarily as a result of costs incurred in connection with certain outsourcing and relocation initiatives.
For the nine months ended September 30, EBITDA decreased to $7.9 million from $12.4 million in 2007. Excluding unrealized gains on derivative instruments in both years, EBITDA would have declined by 37%.
Revenue generated in the airport parking business is driven in part by the rate of commercial airline enplanements. Higher travel costs and reduced economic activity compared to 2007 have reduced enplanement numbers this year. As a result, revenue generated by the airport parking business has declined. These trends have continued during the third quarter and we expect them to continue at least through the remainder of the year.