Macquarie Infrastructure Company LLC (MIC) recently offered a glimpse of its soon-to-be-released second quarter 2013 results, when it divulged the quantum of performance fees due to be received by its management entity. The company is scheduled to report its quarterly results after the market closes on Jul 31.
Macquarie Infrastructure revealed that Macquarie Infrastructure Management (USA) Inc., its management company, has earned a performance fee of $24.4 for the quarter. The performance fee is based on the Management Services Agreement between the parent company and its management entity and is equivalent to 20% of the total return of the stock in excess of its utility index benchmark.
The management company intends to reinvest the performance fee to buy additional shares of the parent group. The purchase price of these shares would be based on the volume weighted average share price over a 15-day period following the release of the financial results.
Macquarie Infrastructure owns and operates a diversified group of infrastructure businesses in the U.S. These include Hawaii Gas – a gas processing and distribution business, a controlling interest in a District Energy business in Chicago, and a 50% ownership interest in International-Matex Tank Terminals – a bulk liquid storage terminal business. The company also owns and operates Atlantic Aviation – an airport services business, and two solar power generation facilities collectively MIC Solar.
Macquarie Infrastructure presently has a Zacks Rank #2 (Buy). Other companies in the industry worth mentioning include Federal Signal Corp. (FSS), Compass Diversified Holdings (CODI) and Honeywell International Inc. (HON), each carrying a Zacks Rank #2 (Buy).
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