PR Newswire
NEW YORK, Aug. 4, 2020
NEW YORK, Aug. 4, 2020 /PRNewswire/ -- Macquarie Infrastructure Corporation (NYSE: MIC) today announced its second quarter 2020 operational and financial results. The results reflect the ongoing impact of COVID-19 related travel restrictions, quarantines and event cancellations on the Company's Atlantic Aviation and MIC Hawaii segments, partially offset by improved performance in its IMTT segment.
Christopher Frost, MIC's Chief Executive Officer, said: "Our bulk liquid storage and handling business, IMTT, saw sustained high levels of storage utilization and generated year-on-year improvement in financial performance while a partial recovery in general aviation flight activity in the U.S. contributed to a better than anticipated result at Atlantic Aviation.
"We remain confident in the outlook for MIC and its operating businesses over the medium term despite the impact of COVID-19 on our results for the second quarter. Cost reduction initiatives implemented early in the quarter enabled us to achieve targeted levels of expense savings while continuing to provide a high level of service and support to our customers."
Second Quarter 2020 Financial Results
MIC reported a net loss from continuing operations of $8 million for the quarter, compared with net income of $6 million in the second quarter of 2019. The decrease reflects reduced revenue from each of Atlantic Aviation and MIC Hawaii. The reduced revenue was partially offset by lower expenses including fees payable to the Company's external manager, lower unrealized losses on interest rate hedges and an income tax benefit.
Adjusted EBITDA excluding non-cash items from continuing operations totaled $87 million in the second quarter, down from $134 million in the prior comparable period. The decrease reflects the reduced contributions from each of Atlantic Aviation and MIC Hawaii, including a $7 million provision for estimated costs of remediating certain environmental matters recorded in selling, general and administrative expenses at Atlantic Aviation, partially offset by an increased contribution from IMTT.
MIC generated cash from operating activities of $73 million in the second quarter, down from $108 million in the prior comparable period. The decrease primarily reflects the reduced EBITDA excluding non-cash items generated by each of Atlantic Aviation and MIC Hawaii and declines in the amounts of products purchased and lower wholesale product prices, partially offset by declines in the amount of product sold and lower retail product prices.
The Company's Adjusted Free Cash Flow from continuing operations totaled $46 million in the second quarter, down 48% from $88 million in the prior comparable period. The decrease reflects the reduction in Adjusted EBITDA excluding non-cash items and higher maintenance capital expenditures, partially offset by a current tax benefit.
Second Quarter 2020 Segment Results
"The improved results at IMTT reflect an increase in demand for storage, particularly for petroleum products, together with a consistent level of uncontracted, ancillary services in the quarter," said Frost.
"The partial recovery in general aviation flight activity in the quarter resulted in an increased contribution from Atlantic Aviation relative to the end of the first quarter. A lifting of lockdown measures in additional markets and a recovery in business oriented travel could increase flight activity, although the absence of most event-related and international travel together with increases in COVID-19 infections in certain states, could limit further recovery in 2020," said Frost.
"Travel restrictions and rules requiring mandatory quarantining effectively eliminated tourism in Hawaii during the quarter and materially reduced demand for gas produced and/or distributed by Hawaii Gas," said Frost.
MIC's Corporate and Other segment includes costs of managing the public company, interest expense associated with holding company level debt facilities and expenses related to its pursuit of strategic alternatives.
Balance Sheet Strength and Financial Flexibility
MIC's aggregate leverage ratio increased to approximately 4.8 times net debt/Adjusted EBITDA excluding non-cash items (trailing twelve-month basis) on June 30, 2020. The Company expects its leverage ratio to increase through the remainder of the year based on the impact of COVID-19 on its financial performance and its use of a portion of its current cash balance to fund growth projects. MIC expects to deploy cash of between $200 and $225 million on projects to which it is contractually obligated. Through June 30, the Company had deployed $119 million in growth projects. The use of cash is expected to be partially offset by incremental EBITDA generated by the projects completed during the year.
"Our current cash balances, excluding drawings on our revolving credit facility, together with the cash we believe our businesses will generate over the remainder of the year, are expected to fund our ongoing operations and allow us to meet all of our financial obligations," noted Frost.
Strategic Alternatives
On October 31, 2019, MIC announced that it was pursuing strategic alternatives including the sale of the Company or one or more of its operating businesses as a means of unlocking value. During the second quarter, the Company continued to actively pursue these alternatives although travel and other restrictions on interactions imposed by COVID-19 slowed the process, as expected.
"While the timeline for the process has been extended due to COVID-19, we remain committed to unlocking value for shareholders through a sale or sales," said Frost.
Summary Financial Information
| Quarter Ended | | Change | | Six Months Ended | | Change | ||||||||||||||||||||
| 2020 | | 2019 | | $ | | % | | 2020 | | 2019 | | $ | | % | ||||||||||||
| ($ In Millions, Except Share and Per Share Data) (Unaudited) | ||||||||||||||||||||||||||
GAAP Metrics | | | | | | | | | | | | | | | | ||||||||||||
Continuing Operations | | | | | | | | | | | | | | | | ||||||||||||
Net (loss) income | $ | (8) | | | $ | 6 | | | (14) | | | NM | | $ | 3 | | | $ | 70 | | | (67) | | | (96) | | |
Net (loss) income per share attributable to MIC | (0.09) | | | 0.07 | | | (0.16) | | | NM | | 0.04 | | | 0.81 | | | (0.77) | | | (95) | | |||||
Cash provided by operating activities | 73 | | | 108 | | | (35) | | | (32) | | | 172 | | | 259 | | | (87) | | | (34) | | ||||
Discontinued Operations | | | | | | | | | | | | | | | | ||||||||||||
Net income | $ | — | | | $ | 3 | | | (3) | | | (100) | | | $ | — | | | $ | 8 | | | (8) | | | (100) | |
Net income per share attributable to MIC | — | | | 0.06 | | | (0.06) | | | (100) | | | — | | | 0.13 | | | (0.13) | | | (100) | | ||||
Cash provided by (used) in operating activities | — | | | 2 | | | (2) | | | (100) | | | — | | | (11) | | | 11 | | | 100 Werbung Mehr Nachrichten zur Macquarie Infrastructure Company Aktie kostenlos abonnieren
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