Macquarie Infrastructure Corporation (MIC) has reported a 61.10 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $36.02 million, or $0.44 a share in the quarter, compared with $22.36 million, or $0.28 a share for the same period last year. Revenue during the quarter grew 13.89 percent to $451.46 million from $396.39 million in the previous year period. Gross margin for the quarter contracted 701 basis points over the previous year period to 55.27 percent. Total expenses were 82.51 percent of quarterly revenues, up from 77.60 percent for the same period last year. That has resulted in a contraction of 490 basis points in operating margin to 17.49 percent.
Operating income for the quarter was $78.98 million, compared with $88.78 million in the previous year period.
“MIC generated financial results for the first quarter in line with our expectations including a strong performance by Atlantic Aviation that offset a reduced contribution from Contracted Power,” said James Hooke, chief executive officer of MIC. “In addition to the solid increase in cash generation by our existing businesses collectively, we have deployed growth capital into attractive opportunities at a pace consistent with our full-year guidance.”
Operating cash flow declines
Macquarie Infrastructure Corporation has generated cash of $128.57 million from operating activities during the quarter, down 13.46 percent or $ 20 million, when compared with the last year period. The company has spent $67.74 million cash to meet investing activities during the quarter as against cash outgo of $65.70 million in the last year period.
The company has spent $75.98 million cash to carry out financing activities during the quarter as against cash outgo of $83.22 million in the last year period.
Cash and cash equivalents stood at $29.62 million as on Mar. 31, 2017, up 31.62 percent or $7.12 million from $22.50 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Macquarie Infrastructure Corporation has turned positive to $0.23 million on Mar. 31, 2017 from negative $100.30 million on Mar. 31, 2016. Current ratio was at 1 as on Mar. 31, 2017, up from 0.66 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 8 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 8 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 31 for the same period last year.
Debt moves up
Macquarie Infrastructure Corporation has witnessed an increase in total debt over the last one year. It stood at $3,113.66 million as on Mar. 31, 2017, up 11.02 percent or $309.09 million from $2,804.57 million on Mar. 31, 2016. Total debt was 41.30 percent of total assets as on Mar. 31, 2017, compared with 38.51 percent on Mar. 31, 2016. Debt to equity ratio was at 1.01 as on Mar. 31, 2017, up from 0.89 as on Mar. 31, 2016. Interest coverage ratio improved to 3.10 for the quarter from 1.56 for the same period last year.
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