Macquarie Infrastructure Corporation (NYSE: MIC) has reported financial results for full year 2017 that included growth investments of more than USD 625.0 million and a cash dividend of USD 1.44 per share for the fourth quarter, the company said.
MIC reported fourth quarter and full year 2017 net income of USD 361.3 million and USD 456.1 million, respectively, an increase of 408% and 195% compared with USD 71.1 million and USD 154.9 million in the comparable periods in 2016.
The increases in net income were primarily the result of changes in US tax law that went into effect with the signing of the Tax Cuts and Jobs Act of 2017 (“Tax Act”) in December of 2017. A reduction in the company´s net Deferred Tax Liability to reflect a reduction in the corporate federal income tax rate constituted the largest portion of the benefit.
Net income before taxes decreased to USD 61.8 million and USD 222.0 million, respectively, for the fourth quarter and full year in 2017, compared with USD 82.0 million and USD 226.1 million in comparable periods in 2016. The decrease in pre-tax net income reflects primarily higher interest expense in the fourth quarter and a decrease in other income related to the absence of insurance recoveries in 2017 in the full year period.
MIC produced USD 135.5 million and USD 568.0 million of Adjusted Free Cash Flow in the fourth quarter and full year periods in 2017, respectively, up from USD 118.6 million and USD 510.2 million in the comparable periods in 2016. The aggregate increase in Adjusted Free Cash Flow of 14.2% and 11.3% for the quarter and full-year, respectively, was partially offset by an increase in the weighted average number of shares of MIC outstanding.
The MIC board of directors has authorized a cash dividend of USD 1.44 per share for the fourth quarter of 2017. The dividend will be payable March 8, 2018 to shareholders of record on March 5, 2018. Including the dividend of USD 1.44, MIC will have distributed approximately 81.4% of the Adjusted Free Cash Flow generated during 2017 for a dividend coverage ratio of approximately 1.2 times.
MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, entities comprising an energy services, production and distribution segment, MIC Hawaii, and entities comprising a Contracted Power segment. For additional information, visit the MIC website at www.macquarie.com/mic. MIC-G