March 23, 2005

Macquarie Infrastructure Company Reports 2004 Results

New York, NY, March 23, 2005 - Macquarie Infrastructure Company (the "Company" or "MIC") (NYSE: MIC) today announced results of operations for the year ended December 31, 2004. Macquarie Infrastructure Company closed its initial public offering and concurrent private placement on December 21, 2004 and acquired its initial businesses and investments on December 22 & 23, 2004. Consequently, the Company's results only reflect the nine days of activity of its businesses and investments to December 31, 2004.

Following are highlights of its offering and the acquisition of its businesses and investments:

  • The Company sold 26,610,000 shares of trust stock at $25 per share for gross proceeds of $665 million, which includes 3,210,000 shares issued in connection with the full exercise of the underwriters' over-allotment option.
  • The Company completed the acquisition of its businesses and investments on December 22 and 23, 2004.
  • The Company completed the acquisition of General Aviation Holdings on January 14, 2005.

Peter Stokes, the Company's Chief Executive Officer, stated, "We are very pleased to have successfully completed our initial public offering and the acquisition of the businesses and investments as described in the IPO prospectus. We believe these achievements will provide a solid foundation from which to grow our company. We are offering investors the opportunity to participate in the ownership of high quality infrastructure businesses managed by a global leader in the acquisition, financing and management of infrastructure assets."


Macquarie Infrastructure Company intends to declare and pay an initial quarterly distribution to shareholders for the quarter ended March 31, 2005 of 50 cents per share. The Company also intends to pay a pro-rated distribution of 8.77 cents per share for the period from December 16 to December 31, 2004. Both distributions will be declared at the end of May 2005. Our dividend policy is based on the predictable and stable cash flows of our businesses and investments. It is our intention to distribute to our shareholders the majority of our cash available for distributions and not to retain significant cash balances in excess of prudent reserves retained by our operating subsidiaries.


Macquarie Infrastructure Company commenced trading on the New York Stock Exchange on December 16, 2004. During December, the Company used a majority of the proceeds from the capital raised and purchased the following businesses and investments:

The Company's 2004 consolidated operating results reflect start up costs plus activity from these businesses and investments for the nine day period between December 22, 2004 and December 31, 2004. Due to this short period the Company recorded a net operating loss for the period of $17.6 million, primarily due to the following items incurred during the period. They include:

  • Initial formation and acquisitions costs totalling $6.0 million; and
  • A performance fee payable in trust stock to the Manager of $12.1 million (see Performance Fee discussion below). These items do not affect estimated minimum cash available for distribution, because the initial formation costs were funded with the proceeds of the initial public offering and private placement and the Manager has elected to reinvest its performance fee in trust stock.
On a pro forma basis, the Company has estimated minimum cash available for distribution for the year ended December 31, 2005 of $56.7 million, calculated as follows:

A review of the Company's consolidated results of operations is more meaningful with the inclusion of segment reporting. Therefore, the Company will include in the Form 10-K a segment by segment analysis of the full year 2004 historical results of operations of our businesses and investments, including the full year 2003 historical results prior to our acquisition. We consider this is a more appropriate approach to explaining the historical financial performance of the Company and its underlying businesses and investments. However, these segment results include significant non-recurring items relating to their acquisition:

  • Transactions costs of $2.0 million incurred by the prior owners related to the sale of Executive Air Support (EAS) to North America Capital Holdings (NACH) and Thermal Chicago to Macquarie District Energy Holdings (MDEH);
  • Bridge financing fees and swap breakage costs incurred by NACH and MDEH, totalling $12.5 million, which were expensed when permanent financing was secured for those businesses;
  • Warrants with a value of $5.3 million that were cancelled during the acquisition of EAS by NACH; and
  • Payment of make-whole premium of $10.3 million by the prior owners of Thermal Chicago, made in connection with the retirement of the then existing debt prior to its sale to MDEH.


The following discussion presents a segment by segment analysis of the historical 2004 results of operations of our business and investments, including results prior to our acquisitions. The Company has included organic growth data for each of our businesses, which excludes the effects of significant acquisitions that took place during either period.


  • Organic revenue growth of 15.6%
  • Organic fuel volume growth of 8.3%
  • Fuel margins per gallon have remained constant
  • Two new fixed based operations(FBOs) in New Orleans added in December 2003
  • Results do not reflect acquisition of General Aviation Holdings in January 2005


  • Organic revenue growth of 13.0%
  • Organic daily occupancy growth of 25%
  • Operating costs reflect start up costs associated with new locations
  • Organic gross profit increased by 23.5% and gross margin has improved
  • Avistar acquired in October 2003, adding 10 new locations
  • Four new locations added to the national network during 2004


  • Organic revenue growth of 6.1%
  • Increased contracted capacity at Thermal Chicago of 3.8%
  • Costs of sales increased; specifically depreciation, as a result of the increase of the fair value of Thermal Chicago acquired in June 2004
  • Results do not reflect the full year of Northwind Aladdin acquired in September 2004.
  • Useable capacity at Thermal Chicago has increased by 4.7% due to system improvements


  • Guidance for cash distributions for the full year 2005 of $9.4 million
  • Indicative yield of 11.1% on acquisition price


Macquarie Infrastructure Communications Group

  • Guidance for cash distributions for the full year 2005 of $3.4 million (net of assumed withholding taxes)
  • Expected growth in distributions for the year ended June 30, 2006 of 27%, based on public statements made by MCG South East Water
  • Guidance for cash distributions for the full year 2005 of $8.5 million, $3.5 million higher than expected in December 2004 due to a favorable regulatory determination in December 2004 and the successful refinancing of the acquisition bridge facility

Overall, our businesses and investments performed well over the past year as stand-alone businesses, with all the US businesses experiencing revenue and gross profit growth. We believe this has provided us a strong foundation for further growth in 2005.


Macquarie Infrastructure Management (USA) Inc., the Company's Manager, is a member of the Macquarie Group. Under the terms of a Management Services Agreement, the Manager is eligible to earn a performance fee each quarter if the MIC Accumulation Index outperforms a benchmark represented by a weighted average of the MSCI U.S. IMI/Utilities Index and the MSCI Europe IMI/Utilities Index. The performance fee payable is 20% of the outperformance by the MIC Accumulation Index over the benchmark for the period.

In the period from MIC's initial public offering on December 21, 2004 to December 31, 2004, the MIC Accumulation Index outperformed the benchmark by 9.1%, or $60.4 million. The MIC Accumulation Index increased by 12.3% over the period compared to a 3.3% increase for the benchmark. This outperformance resulted in a performance fee payable to the Manager of $12.1 million. The Manager elected to apply the performance fee to purchase additional shares of trust stock. Under the terms of the Management Services Agreement we will issue these shares to our Manager on or about April 20, based on the volume weighted average trading price per share over the preceding 15 trading days.


Mr. Stokes concluded, "Our businesses and investments performed well over the past 12 months as stand-alone businesses, with all the US businesses experiencing revenue and gross profit growth. We believe this has provided us with a strong foundation for further growth in 2005. Key drivers of growth in our Airport Services and Airport Parking businesses are fuel volumes and enplanements, current forecasts by the FAA projects growth in 2005 of 4.5% and 7.7% respectively. At Thermal Chicago, we continue to focus on adding new customers to the downtown Chicago network. We have in place a debt facility to fund future expansion of the system and ongoing capital expenditure. We are actively seeking to invest the underwriters' over allotment option following the initial public offering in a manner consistent with our acquisition strategy and are currently evaluating a number of opportunities both in the sectors in which we operate and in other infrastructure sectors."


The Company has scheduled a conference call for 11:00 a.m. Eastern Time on March 23, 2005, to review the Company's results. To listen to the conference call, please dial (800) 289-05969 (domestic) or (913) 981-5542 (international), at least 10 minutes before the scheduled start time. Investors can also access the earnings call slideshow presentation and the live call via the Internet at the Company's website at Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.

For interested individuals unable to join the conference call, a replay of the call will be available through March 30, 2005, at (888) 203-1112 (domestic) or (719) 457-0820 (international), (Passcode: 3840095). The online archive of the webcast will be available for one year following the call.


Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses, which provide basic, everyday services, in the United States and other developed countries. Its businesses and investments consist of an airport services business (Atlantic and AvPorts), an airport parking business (PCAA and Avistar) and a district energy business (Thermal Chicago and Northwind Aladdin), a 50% interest in the company that operates the Yorkshire Link shadow toll road and investments in South East Water, a UK regulated water utility and in Macquarie Communications Infrastructure Group.


This earnings release contains forward-looking statements. We may, in some cases, use words such as "project", "believe", "anticipate", "plan", "expect", "estimate", "intend", "should", "would", "could", "potentially", or "may" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this presentation are subject to a number of risks and uncertainties, some of which are beyond our control including, among other things: our ability to successfully integrate and manage acquired businesses, make and finance future acquisitions, service, comply with the terms of and refinance our debt, and implement our strategy, decisions made by persons who control our investments including the distribution of dividends, our regulatory environment, changes in air travel, automobile usage, fuel and gas prices, foreign exchange fluctuations, environmental risks and changes in U.S. federal tax law. Our actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which we are not currently aware could also cause our actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

"Macquarie Group " refers to the Macquarie Group of companies, which comprises Macquarie Bank Limited and its worldwide subsidiaries and affiliates.

Investments in Macquarie Infrastructure Company Trust are not deposits with or other liabilities of Macquarie Bank Limited, or of any Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither Macquarie Bank Limited nor any other member company of the Macquarie Group guarantees the performance of Macquarie Infrastructure Company Trust or the repayment of capital by Macquarie Infrastructure Company Trust.

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Investor Relations
Macquarie Infrastructure Company
(212) 548-2580

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Corporate Communications
Macquarie Infrastructure Company
(212) 548-2740

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