Macquarie Infrastructure Company Reports Second Quarter 2007 Financial Results

Airport services profits up

NEW YORK, Aug. 9 /PRNewswire-FirstCall/ -- Macquarie InfrastructureCompany (NYSE: MIC), a leader in the ownership and operation of U.S.infrastructure businesses, reported consolidated revenue for the secondquarter of $177.2 million. Revenue increased 67% over the second quarter in2006.

The Company reported an operating loss for the period of $22.9 million.The operating loss reflects a performance fee of $43.0 million for the quarterpayable to the Company's manager, Macquarie Infrastructure Management (USA)("MIMUSA"). MIMUSA has elected to reinvest the payment in additional LLCinterests. The fee and reinvestment in additional shares will have no impacton MIC's distributable cash.

MIC reported a 67.6% year over year increase in estimated cash availablefor distribution ("CAD"). CAD is a measure used by the Company to assess itsability to sustain and increase quarterly dividends. Through six months CADincreased to $52.3 million or $1.39 per share, from $31.2 million in the firsthalf of 2006. The increase in CAD was attributable to sound ongoingoperations and successful acquisitions concluded during 2006.

The Company's board of directors has approved a dividend of $0.605 pershare for the second quarter of 2007. The dividend will be payable on September 11, 2007 to shareholders of record on September 6, 2007 .

"Our businesses collectively have generated a substantial increase indistributable cash." said Peter Stokes , Chief Executive Officer of MacquarieInfrastructure Company. "Infrastructure businesses tend to be defensive inthat they generate stable, growing cash flows throughout market cycles. Weare pleased with the solid performance of our businesses this quarter."

"MIC does not raise money from investors unless we have a transaction inhand", Stokes added. "To the extent that we have cash on our balance sheet,we invest that cash only in prime short-term instruments, not illiquidinvestments".

Gross profit was $75.8 million or 60.2% more than the $47.3 millionreported in the second quarter of 2006. Evaluations based on gross profitremove the volatility in revenue associated with costs that are typicallypassed through to customers by infrastructure businesses.

For the six months ended June 30 , the Company reported consolidatedrevenue and an operating loss of $346.2 million and $3.1 million,respectively. Revenue increased 80% over the first half of 2006. The yearto date operating loss reflects the impact of the $43.0 million performancefee.


MIC reports EBITDA and contribution margin, both non-GAAP financialmeasures, as it considers them to be important indicators of overallperformance. The attached tables provide a reconciliation of EBITDA to netincome and contribution margin to revenue. The Company believes that EBITDAprovides insight into the performance of certain of its operating companiesand their ability to generate dividends. The reporting of contribution marginby the gas production and distribution business provides additional insightinto the performance of that business net of changes in fuel prices that aretypically passed through to customers.


The Company believes that its results under GAAP, after certainadjustments, provide better insight into its ability to support itsdistributions. GAAP results alone do not reflect all of the items thatmanagement considers in estimating distributable cash. The table belowsummarizes MIC's estimated cash available for distribution, beginning withcash from operations and adjusted for certain dividend income and cashexpenditures included in the calculation of CAD. Estimated cash available fordistribution totaled $52.3 million through the second quarter.

MIC's consolidated cash from operations increased to $52.5 million in thefirst half of 2007 from $23.4 million in the first half of 2006. Cash fromoperations is the starting point for calculating estimated cash available fordistribution ("CAD").

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