OAKVILLE, ON, May 9, 2013 /CNW/ - Algonquin Power & Utilities Corp.
(TSX: AQN), today announced financial results for the first quarter
ended March 31, 2013.
First Quarter Financial Highlights:
For the first quarter of 2013, revenue was $196.7 million as compared to
$63.4 million in the first quarter of 2012. The increase in revenue
over the same period in 2012 is primarily the result of regulated
utility acquisitions including the Midwest Gas Systems, the EnergyNorth
Gas System, the Pine Bluff Water System, and the Granite State Electric
System, as well as power generation acquisitions including the U.S.
Wind Projects and Shady Oaks wind generation facilities.
Adjusted EBITDA ("Adjusted EBITDA") was $61.0 million in the first
quarter of 2013 as compared to $23.4 million in the first quarter of
2012. The increase in Adjusted EBITDA is primarily related to
additional revenues from the acquisitions of the EnergyNorth Gas
System, the Granite State Electric System, the Midwest Gas Systems, the
U.S. Wind Projects, and the Shady Oaks Wind Facility, and increased
demand and higher rates at the Calpeco Electric System.
APUC reported adjusted net earnings of $17.8 million or $0.09 per share
in the first quarter of 2013 as compared to adjusted net earnings of
$5.5 million or $0.04 per share in the first quarter of 2012.
First Quarter Corporate Highlights:
During the quarter, APUC issued a total of 15.2 million shares to Emera
Incorporated ("Emera") for total proceeds of $90.4 million, pursuant to
several previously committed subscription agreements. As a result,
Emera currently owns 50.1 million APUC common shares representing
approximately 24.5% of the total outstanding common shares of APUC.
Early in 2013, APUC completed the redemption of the outstanding Series 3
Debentures by issuing and delivering 150,816 APUC common shares for the
remaining $1.0 million in Series 3 Debentures, and as a result there
are no remaining convertible debentures in APUC's capital structure.
During the quarter, an APUC subsidiary entered into an agreement to sell
ten small U.S. hydroelectric generating facilities for gross proceeds
of U.S. $27 million. These facilities were no longer considered
strategic to the ongoing operations of the Company. The operating
results from these facilities are disclosed as discontinued operations
on the consolidated statements of operations and prior periods have
been reclassified to conform to this presentation.
First Quarter Growth Highlights:
An APUC subsidiary acquired the 109.5 MW contracted Shady Oaks wind
powered generating station for total consideration of approximately
U.S.$148.9 million. The Shady Oaks wind power facility is located in
Northern Illinois, approximately 80 km west of Chicago, Illinois and
reached commercial operation in June 2012.
An APUC subsidiary acquired the Pine Bluff Water System, a regulated
water distribution utility located in Pine Bluff, Arkansas serving
approximately 17,800 water distribution connections. Total purchase
price for the utility was approximately U.S.$27.6 million plus working
capital and other closing adjustments, representing a multiple of net
assets for regulatory purposes of approximately 1.16x.
An APUC subsidiary entered into an agreement to assume the rights to
purchase the assets of New England Gas Company, a natural gas
distribution utility serving over 50,000 customers in Massachusetts.
The acquisition is subject to certain approvals and conditions, and is
expected to close in the second half of 2013. Total consideration for
the utility asset purchase is approximately U.S. $74 million, subject
to working capital and closing adjustments.
APUC issued 3.4 million common shares to Emera representing the balance
of the subscription receipts outstanding pursuant to the acquisition in
2012 of the remaining 49.999% ownership in California Pacific Utility
Ventures LLC, which owns 100% of the Calpeco Electric System.
Granite State Electric System filed a rate case with the New Hampshire
Public Service Commission seeking an increase in base rates of
U.S.$14.2 million, and an additional U.S.$1.2 million increase in 2014
subject to the completion of certain capital projects. An interim rate
increase of U.S.$9.2 million is being requested as part of the
application, to be implemented in the third quarter of 2013.
Subsequent to the end of the first quarter, on April 1, an APUC
subsidiary acquired certain regulated natural gas distribution utility
systems located in Columbus and Gainesville, Georgia serving
approximately 64,000 gas distribution utility customers. Total purchase
price for the utility was approximately U.S.$140.7 million plus working
capital and closing adjustments representing a multiple of net assets
for regulatory purposes of approximately 1.1x.
"We had a very active start to the year with our 2012 growth initiatives
fully contributing in the first quarter of 2013 and with the
announcement of continued growth in both our regulated and
non-regulated utilities businesses," commented Chief Executive Officer
Ian Robertson. "With these new growth initiatives and the financial
contribution of our successes achieved in 2012 we are very pleased that
our increased earnings and cash flow profile has allowed our Board to
raise the dividend by 9.7% to $0.34 annually."
APUC's supplemental information is available on the web site at www.algonquinpowerandutilities.com.
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, May 10, 2013, hosted by Chief Executive Officer, Ian Robertson
and Chief Financial Officer, David Bronicheski.
Conference call details are as follows:
Date: Friday, May 10, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4860 or Local 416-644-3415.
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4612895# from May 10, 2013 until May 29,
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.0
billion portfolio of regulated and non-regulated utilities in North
America. The company's regulated utility business is committed to
provide water, electricity and natural gas utility services to over
470,000 customers through a nationwide portfolio of regulated
generation, transmission and distribution utility systems. The
company's non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers continuing growth through an expanding
pipeline of renewable power and clean energy projects, organic growth
within its regulated utilities and the pursuit of accretive acquisition
opportunities. Common shares and preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position or cash flows. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including assumptions
based on historical trends, current conditions and expected future
developments. Since forward-looking statements relate to future events
and conditions, by their very nature they require making assumptions
and involve inherent risks and uncertainties. APUC cautions that
although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the
possibility that actual results may differ materially from the
expectations set out in the forward-looking statements. Material risk
factors include those set out in the management's discussion and
analysis section of APUC's most recent annual report, quarterly report,
and APUC's Annual Information Form. Given these risks, undue reliance
should not be placed on these forward-looking statements, which apply
only as of their dates. Other than as specifically required by law,
APUC undertakes no obligation to update any forward-looking statements
or information to reflect new information, subsequent or otherwise.
SOURCE: Algonquin Power & Utilities Corp.
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500