MONTREAL, May 12 /CNW Telbec/ - Due to higher levels of electricity
production and revenue from the sale of Renewable Energy Certificates (RECs),
Boralex Inc. ("Boralex" or the "Corporation") recorded $55.0 million in
revenue from energy sales in the first quarter of 2008, up 8% over same period
in 2008.(in millions of dollars, except per share data)
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Three months ended
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March 31 March 31
2008 2007
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Revenue from energy sales 55.0 50.8
EBITDA 24.4 25.8
Net earnings 9.2 9.8
Basic net earnings per share $0.25 $0.33
Cash flow from operations 20.7 20.1
-------------------------------------------------------------------------Excluding the adverse impact of exchange rate fluctuations, revenue would
have risen by more than 18%. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") totalled $24.4 million in the first quarter compared
to $25.8 million for the same period in 2007. The change in EBITDA was
positively influenced by a significant increase in REC sales and in total
energy production, but was negatively affected by exchange rate fluctuations,
fuel cost increases in the wood-residue segment and certain non-recurring
items recorded in 2007. The first quarter of 2008 ended with net earnings of
$9.2 million or $0.25 per share, compared to $9.8 million or $0.33 per share
in 2007.
The segment breakdown shows that the wind power segment benefited from
the start-up of the Citadelle wind farm and production increases at existing
sites. Revenue from energy sales grew $1.9 million to $10.2 million in the
first quarter of 2008, while EBITDA for this period rose 20% to $8.5 million.
In the hydroelectric segment, revenue grew $0.7 million to $3.8 million
compared to the first quarter of 2007, due to better hydrology than the
previous year. Revenue in the wood-residue segment rose to $34.3 million in
2008, up $0.9 million compared to the first quarter of 2007, stemming from the
strong increases in revenue from REC sales and in the average electricity
selling price. However, fuel costs for this segment rose $3.8 million. The
good performance of the natural gas segment was due to increases in
electricity and steam prices. Revenue from energy sales in this segment was up
10%, to $6.7 million, in the first quarter of 2008.
"We are confident that Boralex will put in a good performance in 2008
because we continually strive to improve the efficiency of our wood-residue
thermal power stations and because of the growing contribution from the wind
power segment," said Patrick Lemaire, President and Chief Executive Officer of
Boralex. "Indeed, the entire Boralex team and its partners are delighted with
the award to build wind power projects with 272 MW of installed capacity on
the Seigneurie de Beaupré lands. This great news will put Boralex right on
track to achieving our goal of putting 1000 MW under contract within the next
five years."
About Boralex
Boralex is a major private electricity producer whose core business is
the development and operation of power stations that run on renewable energy.
Employing close to 300 people, the Corporation owns and operates 21 power
stations with a combined installed capacity of 351 MW in Quebec, the
northeastern United States and France. Boralex is distinguished by its leading
expertise and long experience in three types of power generation - wind power,
hydroelectric power and thermal. The Boralex shares trade on the Toronto stock
exchange under the ticker symbol BLX. www.boralex.com
In addition, Boralex holds a 23% interest in Boralex Power Income Fund
which owns 10 power stations in Quebec and the United States with an installed
capacity of close to 190 MW. Management of the Fund's assets is provided by
Boralex.
Certain statements in this release, including statements regarding future
results and performance, are forward-looking statements based on current
expectations. The accuracy of such statements is subject to a number of risks,
uncertainties and assumptions that may cause actual results to differ
materially from those projected, including, but not limited to, the effect of
general economic conditions, decreased demand for Boralex's products,
increases in raw material costs, fluctuations in currency exchange rates,
fluctuations in sales prices and adverse changes in general market and
industry conditions. The summarized financial statements included in this
press release also contain certain financial measurements that are not
recognized as Generally Accepted Accounting Principles (GAAP).
To assess the operating performance of its assets and reporting segments,
the Corporation uses Earnings before interest, taxes, depreciation and
amortization (EBITDA) and Cash flows from operations as performance
measurements. EBITDA and Cash flows from operations are not defined under GAAP
and do not have a standardized meaning prescribed by GAAP. Therefore, these
measures may not be comparable to similar measures presented by other
enterprises. EBITDA is defined in the summarized financial statements included
with this press release. Cash flows from operations corresponds to cash flows
from operating activities before changes in non-cash working capital balances
as disclosed in the consolidated statements of cash flows attached in this
press release.
Notice to shareholders
The interim financial statements as at March 31, 2008 and 2007 have not
been reviewed by our auditors PricewaterhouseCoopers LLP. The financial
statements are the responsability of the Management of Boralex Inc. They have
been reviewed and approved by its Board of Directors, as recommended by its
Audit Committee.
The following financial informations were extracted from the interim
consolidated financial statements of Boralex Inc. The complete interim
financial statements were prepared conformingly with the Canadian generally
accepted accounting principles ("GAAP"). They are available on the Boralex's
website (www.boralex.com) and filed with SEDAR.Consolidated Financial Statements
Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)
As at As at
March 31, December 31,
2008 2007
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Assets
Current assets
Cash and cash equivalents 70,495 79,195
Accounts receivable 45,089 39,200
Future income taxes 1,437 2,394
Inventories 6,582 8,002
Prepaid expenses 2,824 2,171
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126,427 130,962
Investment 68,292 67,321
Property, plant and equipment 281,086 258,712
Electricity sales contracts 20,365 18,527
Other assets 56,416 39,209
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552,586 514,731
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 19,324 20,869
Income taxes payable 1,769 1,481
Current portion of long-term debt 27,573 26,786
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48,666 49,136
Long-term debt 160,143 148,747
Future income taxes 28,759 23,430
Fair value of derivative financial instruments 3,130 1,400
Other liabilities 6,253 6,642
Non-controlling interests 714 607
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247,665 229,962
Shareholders' equity
Capital stock 223,023 221,557
Contributed surplus 2,232 1,974
Retained earnings 124,890 115,669
Accumulated other comprehensive income (45,224) (54,431)
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304,921 284,769
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552,586 514,731
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Consolidated Statements of Earnings
(in thousands of dollars, except per-share amounts and number of shares)
(unaudited)
For the quarters
ended March 31,
2008 2007
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Revenue from energy sales 55,019 50,802
Renewable energy tax credits 3,122 3,755
Operating costs 34,460 31,213
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23,681 23,344
Share in earnings of the Fund 3,248 3,478
Management revenue from the Fund 1,341 1,406
Other revenue 31 1,519
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28,301 29,747
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Other expenses
Management and operation of the Fund 938 1,161
Administration costs 2,998 2,789
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3,936 3,950
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Operating earnings before amortization 24,365 25,797
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Amortization 5,828 5,982
Financial instruments 319 -
Financing costs 3,465 4,548
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9,612 10,530
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Earnings before income taxes 14,753 15,267
Income tax expense 5,438 5,433
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9,315 9,834
Non-controlling interests 94 57
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Net earnings 9,221 9,777
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Net earnings per Class A share (basic)
(in dollars) 0.25 0.33
Net earnings per Class A share (diluted)
(in dollars) 0.24 0.32
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Weighted average number of Class A shares
outstanding (basic) 37,566,967 30,061,484
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Consolidated Statements of Retained Earnings
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
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Balance - beginning of period 115,669 97,649
Net earnings for the period 9,221 9,777
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Balance - end of period 124,890 107,426
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Consolidated Statements of Comprehensive Income
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
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Net earnings for the period 9,221 9,777
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Other comprehensive income:
Translation adjustments
Unrealized foreign exchange gains (losses)
on translation of financial statements
of self-sustaining foreign operations 9,091 (1,528)
Share of cumulative translation adjustments
of the Fund 591 351
Taxes (78) (112)
Cash flow hedges
Change in fair value of financial instruments (463) (2,091)
Realized losses on hedging items recognized
in net earnings (121) -
Taxes 187 668
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9,207 (2,712)
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Comprehensive income for the period 18,428 7,065
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Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
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Operating activities
Net earnings 9,221 9,777
Distributions received from the Fund 3,098 3,098
Adjustments for non-cash items
Share in earnings of the Fund (3,248) (3,478)
Amortization 5,828 5,982
Amortization of financing costs 708 648
Renewable energy tax credits (1,093) (1,330)
Future income taxes 5,436 5,018
Financial instruments 319 -
Other 479 377
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20,748 20,092
Change in non-cash working capital balances (5,542) (7,195)
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15,206 12,897
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Investing activities
Purchase of property, plant and equipment (3,997) (499)
Change in debt servicing reserves (29) (21)
Development projects (14,557) (82)
Other (150) (1,039)
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(18,733) (1,641)
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Financing activities
Increase in long-term debt - 2,529
Payments on long-term debt (9,000) (2,340)
Financing costs - (5)
Net proceeds from share issuance 1,466 127
Other - (254)
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(7,534) 57
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Translation adjustment on cash
and cash equivalents 2,361 (96)
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Net change in cash and cash equivalents (8,700) 11,217
Cash and cash equivalents - beginning of period 79,195 13,899
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Cash and cash equivalents - end of period 70,495 25,116
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SUPPLEMENTAL INFORMATION
Cash and cash equivalents paid for:
Interests 3,004 3,309
Income taxes 303 862
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Segmented Information
(tabular amounts in thousands of dollars, unless otherwise specified)
(unaudited)
The Corporation's power stations are grouped under four distinct segments:
wind power, hydroelectric power, wood-residue thermal power and natural gas
thermal power, and are engaged mainly in the production of energy. The
classification of these segments is based on the different cost structures
relating to each type of power station.
The Corporation analyzes the performance of its operating segments based
on their EBITDA which is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is not a measure of performance under
Canadian generally accepted accounting principles; however, management uses
this performance measure for assessing the operating performance of its
reportable segments. Earnings for each segment are presented on the same basis
as those of the Corporation.
The following table reconciles EBITDA with net earnings:
For the quarters
ended March 31,
2008 2007
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Net earnings 9,221 9,777
Non-controlling interests 94 57
Income tax expense 5,438 5,433
Financing costs 3,465 4,548
Financial instruments 319 -
Amortization 5,828 5,982
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EBITDA 24,365 25,797
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Information by operating segment
For the quarters
ended March 31,
2008 2007
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PRODUCTION (in MWh)
Wind power stations 75,822 61,976
Hydroelectric power stations 43,380 33,581
Wood-residue thermal power stations 327,908 341,380
Natural gas thermal power station 22,493 22,174
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469,603 459,111
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REVENUE FROM ENERGY SALES
Wind power stations 10,170 8,268
Hydroelectric power stations 3,790 3,079
Wood-residue thermal power stations 34,337 33,360
Natural gas thermal power station 6,722 6,095
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55,019 50,802
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EBITDA
Wind power stations 8,516 7,070
Hydroelectric power stations 3,047 2,066
Wood-residue thermal power stations 11,083 12,175
Natural gas thermal power station 1,319 2,105
Corporate and eliminations 400 2,381
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24,365 25,797
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For the quarters
ended March 31,
2008 2007
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PURCHASE OF PROPERTY, PLANT AND EQUIPMENT
Wind power stations 2,686 197
Hydroelectric power stations 6 118
Wood-residue thermal power stations 1,200 45
Natural gas thermal power station - 2
Corporate and eliminations 105 137
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3,997 499
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As at As at
March 31, December 31,
2008 2007
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ASSETS
Wind power stations 219,012 196,816
Hydroelectric power stations 15,570 12,434
Wood-residue thermal power stations 133,104 130,715
Natural gas thermal power station 18,921 16,132
Corporate and eliminations 165,979 158,634
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552,586 514,731
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For further information: Patricia Lemaire, Director, Public Affairs and
Communications, Boralex Inc., (514) 985-1353, patricia.lemaire@boralex.com
