Atlantic Power Corporation Releases Third Quarter 2011 Results

    <<


    >>

BOSTON, Nov, 11, 2011 /CNW/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today announced its results for the three and nine months ended September 30, 2011. All amounts are in U.S. dollars unless otherwise indicated. Please see "Regulation G Disclosures" attached to this news release for an explanation and US GAAP reconciliation of the terms "EBITDA," "Project Adjusted EBITDA" and "Cash Available for Distribution" as used in this news release.

    <<

    Highlights
    --  Closed acquisition of Capital Power Income L.P. ("CPILP") on November
        5, 2011
    --  Financial results in line with expectations
    --  Maintaining 2011 project cash flow and payout ratio guidance

    >>

"We are pleased that the results for the quarter met our expectations and are in line with our guidance for the year," commented Barry Welch, President and CEO. "With the successful close of the CPILP acquisition behind us, we are focusing on the critical task of fully integrating CPILP's people and assets into our organization. First and foremost, we are dedicated to finding a permanent CFO to join our management team. We have met with several great candidates, and hope to have an announcement on that front soon."

    <<

    Operating Performance
    >>

Project Adjusted EBITDA, including earnings from equity investments, decreased by $0.5 million to $41.0 million for the quarter ended September 30, 2011 compared to $41.5 million for the same period last year. The primary drivers behind the decrease were:

    <<

    --  decreased earnings at Chambers due to an increase in operations and
        maintenance costs in connection with a forced outage in July 2011;
    --  decreased earnings at Lake attributable to the plant running favorable
        off-peak dispatch during the third quarter of 2010; and
    --  decreased earnings at Badger Creek due to lower capacity payments
under
        the new one year interim power purchase agreement beginning in April
        2011.

    These decreases were partially offset by:

    --  contributions from the Cadillac Renewable facility, which was acquired
        in December 2010; and
    --  contributions from Idaho Wind, which became operational in the first
        quarter of 2011.

    >>

Project Adjusted EBITDA, including earnings from equity investments, increased by $1.0 million to $119.8 million for the nine months ended September 30, 2011 compared to $118.8 million for the same period last year. The increase in EBITDA was attributable to the following factors:

    <<

    --  contributions from the Cadillac Renewable facility, which was acquired
        in December 2010; and
    --  contributions from Idaho Wind, which became operational in the first
        quarter of 2011.

    These increases were partially offset by:

    --  decreased earnings at Selkirk due to lower capacity revenue in
        connection with a planned outage that was longer than expected and
        resulted in a delay of recognition of capacity payments until the
        fourth quarter of 2011;
    --  decreased earnings at Pasco primarily due to higher operations and
        maintenance expenses attributable to the unplanned replacement of gas
        turbine blades during a maintenance outage and un-planned repairs
        associated with the generator and boiler;
    --  decreased earnings at Chambers attributable to lower dispatch and a
        forced outage in July 2011; and
    --  decreased earnings at Topsham, as the project was sold in May 2011.

    Cash Available for Distribution
    >>

For the three and nine months ended September 30, 2011, Cash Available for Distribution increased by $2.6 million and $11.8 million, respectively, compared to the prior year. The payout ratio for the nine months ended September 30, 2011 was 93% compared to 96% for the same period in 2010. The decrease in the payout ratio is attributable to the increase in EBITDA previously described and the release of $5.8 million previously trapped cash at Selkirk. The current payout ratio and project distributions are in line with expectations and previous guidance for the full year 2011.

The calculation of Cash Available for Distribution (in both US$ and Cdn$) and a summary of Project Adjusted EBITDA by individual project for the three and nine months ended September, 2011 are attached to this news release.

    <<

    Capital Power Income L.P. Acquisition
    >>

On November 5, Atlantic Power acquired all the outstanding units of CPILP pursuant to the Plan of Arrangement that was approved by the Court of Queen's Bench of Alberta on November 1. Details of the acquisition can be found in our closing press release dated November 7, 2011.

    <<

    Guidance
    >>

Based on our actual performance to date and projections for the remainder of the year, we continue to expect to receive distributions from our projects in the range of $80 million to $90 million for the full year 2011. We expect overall levels of operating cash flows in 2011 to be improved over actual 2010 levels. Higher distributions from existing projects, initial distributions from our recent investment in Idaho Wind and Cadillac, and a slightly lower payment under the management termination agreement are expected to be partially offset by the one-time cash tax refund of $8.0 million received in 2010. These increased operating cash flows in 2011, combined with the impact of our public offerings in 2010, are expected to result in a payout ratio of approximately 100% to 105% in 2011 subject to the financial performance of our projects. In 2012, additional increases in distributions from projects are expected to further increase operating cash flow compared to 2011. The most significant factors in the expected higher operating cash flow in 2012 is accretion from the acquisition of CPILP and increased distributions from Selkirk following the final payment of its non-recourse project level debt in mid-2012.

    <<

    Outstanding Common Shares and Convertible Debentures
    >>

As of November 9, 2011, we had 113,474,259 common shares, Cdn$44.9 million principal amount of 6.50% convertible secured debentures due October 31, 2014, Cdn$68.1 million principal amount of 6.25% convertible debentures due March 15, 2017, and Cdn$80.5 million principal amount of 5.60% convertible debentures due June 30, 2017 outstanding. Holders of common shares currently receive a monthly dividend at an annual rate of Cdn$1.15 per common share.

    <<

    Investor Conference Call and Webcast
    >>

A telephone conference call hosted by Atlantic Power's management team will be held on Monday, November 14, 2011 at 10:00 AM ET. The telephone numbers for the conference call are: U.S. Toll Free: 1-877-317-6789; Canada Toll Free: 1-866-605-3852; International Toll: +1 412-317-6789. The Conference Call will also be broadcast over Atlantic Power's website. Please call or log in 10 minutes prior to the call. The telephone numbers to listen to the conference call after it is completed (Instant Replay) are U.S. Toll Free: 1-877-344-7529; International Toll: +1-412-317-0088. Please enter conference call number 10005106. The conference call will also be archived on Atlantic Power's website.

    <<

    About Atlantic Power
    >>

Atlantic Power is a leading publicly traded, power generation and infrastructure company with a well diversified portfolio of assets in the United States and Canada. Our power generation projects sell electricity to utilities and other large commercial customers under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices. The net generating capacity of the Company's projects is approximately 2,116 MW, consisting of interests in 30 operational power generation projects across 11 states and 2 provinces, one 53 MW biomass project under construction in Georgia, and an 84-mile, 500 kilovolt electric transmission line located in California. Atlantic Power also owns a majority interest in Rollcast Energy, a biomass power plant developer with several projects under development. Atlantic Power is incorporated in British Columbia, headquartered in Boston and has offices in Chicago, Toronto, and Richmond, B.C.

Our corporate strategy is to generate stable cash flows from our existing assets and to make accretive acquisitions to sustain our dividend payout to shareholders, which is currently paid monthly at an annual rate of Cdn$1.15 per share.

Atlantic Power has a market capitalization of approximately $1.5 billion and trades on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit the Company's website at www.atlanticpower.com or contact:

    <<




    >>

Atlantic Power Corporation Amanda Wagemaker, Investor Relations(617) 977-2700 info@atlanticpower.com

Copies of financial data and other publicly filed documents get filed on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on the Company's website.

    <<

    Cautionary Note Regarding Forward-looking Statements
    >>

To the extent any statements made in this news release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended and under Canadian securities law (collectively, "forward-looking statements").

Certain statements in this news release may constitute "forward-looking statements", which reflect the expectations of management regarding the future growth, results of operations, performance and business prospects and opportunities of our Company and our projects. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "project," "continue," "believe," "intend," "anticipate," "expect" or similar expressions that are predictions of or indicate future events or trends and which do not relate solely to present or historical matters. Examples of such statements in this press release include, but are not limited, to statements with respect to the following:

    <<

    --  The expectation that distributions from our projects will be in the
        range of $80 million to $90 million for the full year 2011;
    --  The expectation that overall levels of operating cash flows in 2011
        will be improved over actual 2010 levels; and
    --  The expectation that the payout ratio in 2011 will be approximately
        100%-105% and that improvements in cash flow and payout ratio are
        expected in 2012.

    >>

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. Please refer to the factors discussed under "Risk Factors" in the Company's periodic reports as filed with the Securities and Exchange Commission from time to time for a detailed discussion of the risks and uncertainties affecting our Company. Although the forward-looking statements contained in this news release are based upon what are believed to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. The financial outlook information contained in this news release is presented to provide readers with guidance on the cash distributions expected to be received by the Company and to give readers a better understanding of the Company's ability to pay its current level of distributions into the future. Readers are cautioned that such information may not be appropriate for other purposes.

    <<
    Atlantic Power Corporation
    Consolidated Balance Sheets (in thousands of U.S.
     dollars)
    >>

    <<
                                                        September    December
                                                              30,         31,
                                                             2011        2010
                                                             ----        ----
                                                      (Unaudited)
    Assets
    Current assets:
         Cash and cash equivalents                        $38,254     $45,497
         Restricted cash                                   28,123      15,744
         Accounts receivable                               19,104      19,362
         Note receivable - related party                    7,326      22,781
         Current portion of derivative
          instruments asset                                   649       8,865
         Prepayments, supplies and other                   10,967       8,480
         Refundable income taxes                            1,594       1,593
         -----------------------                            -----       -----
         Total current assets                             106,017     122,322
    >>

    <<
    Property, plant and equipment, net                    360,594     271,830
    Transmission system rights                            182,245     188,134
    Equity investments in unconsolidated
     affiliates                                           275,425     294,805
    Other intangible assets, net                           71,802      88,462
    Goodwill                                               12,453      12,453
    Derivative instruments asset                            4,593      17,884
    Other assets                                           15,892      17,122
    ------------                                           ------      ------
         Total assets                                  $1,029,021  $1,013,012
         ------------                                  ----------  ----------
    >>

    <<
    Liabilities and Shareholders' Equity
    Current liabilities:
         Accounts payable and accrued
          liabilities                                     $42,373     $20,530
         Current portion of long-term debt                 22,562      21,587
         Current portion of derivative
          instruments liability                            34,921      10,009
         Interest payable on convertible
          debentures                                        2,442       3,078
         Dividends payable                                  6,003       6,154
         Other current liabilities                             10           5
         -------------------------                            ---         ---
         Total current liabilities                        108,311      61,363
    >>

    <<
    Long term debt                                        294,989     244,299
    Convertible debentures                                188,620     220,616
    Derivative instruments liability                       27,892      21,543
    Deferred income taxes                                  18,142      29,439
    Other non-current liabilities                           2,193       2,376
    Commitments and contingencies                               -           -
    -----------------------------                             ---         ---
          Total liabilities                               640,147     579,636
    >>

    <<
    Shareholders' equity
         Common shares, no par value, unlimited
          authorized shares; 68,997,122 and
          67,188,154 issued and outstanding
          September 30, 2011 and December 31,
          2010, respectively                              649,070     626,108
         Accumulated other comprehensive income
          (loss)                                           (1,218)        255
         Retained deficit                                (262,136)   (196,494)
         Total Atlantic Power Corporation
          shareholders' equity                            385,716     429,869
         --------------------------------                 -------     -------
    Noncontrolling interest                                 3,158       3,507
    -----------------------                                 -----       -----
    Total equity                                          388,874     433,376
    ------------                                          -------     -------
    Total liabilities and equity                       $1,029,021  $1,013,012




    >>

    <<
    Atlantic Power Corporation
    Consolidated Statements of Operations (in thousands of
     U.S. dollars, except per share amounts)
    (Unaudited)
    >>

    <<
                                                     Three months       Nine
months
                                                         ended            
ended
                                                    September 30,     
September 30,
                                                       2011     2010     2011 
2010
                                                       ----     ----     ---- 
----
    Project revenue:
       Energy sales                                 $17,104  $22,713  $53,471 
$55,285
       Energy capacity revenue                       27,070   23,196   81,859 
69,585
       Transmission services                          7,638    7,813   22,773 
23,186
       Other                                            521      317    1,153 
1,108
       -----                                            ---      ---    ----- 
-----
                                                     52,333   54,039  159,256 
149,164
    >>

    <<
    Project expenses:
       Fuel                                          14,818   19,678   46,202 
51,606
       Operations and maintenance                     8,645    6,846   27,518 
19,248
       Depreciation and
        amortization                                 10,908   10,082   32,711 
30,224
       ----------------                              ------   ------   ------ 
------
                                                     34,371   36,606  106,431 
101,078
    Project other income
     (expense):
       Change in fair value of
        derivative instruments                      (11,484) (9,744)  (12,497)
(20,946)
       Equity in earnings of
        unconsolidated affiliates                     2,374    4,088    5,647 
12,550
       Interest expense, net                         (4,494) (4,165)  (13,684)
(12,884)
       Other income (expense),
        net                                              (7)      22      (40)
233
       -----------------------                          ---      ---      --- 
---
                                                    (13,611) (9,799)  (20,574)
(21,047)
    Project income                                    4,351    7,634   32,251 
27,039
    Administrative and other
     expenses (income):
       Administration                                11,936    4,103   20,661 
12,046
       Interest                                       3,337    2,707   10,815 
8,019
       Foreign exchange loss
        (gain)                                       21,576  (2,253)   20,383 
179
       Other income, net                                  -        -        - 
(26)
                                                     36,849    4,557   51,859 
20,218
                                                     ------    -----   ------ 
------
    (Loss) income from
     operations before income
     taxes                                          (32,498)   3,077  (19,608)
6,821
    Income tax (benefit)
     expense                                         (4,520)   3,614  (10,681)
12,105
    -------------------------                        ------    -----  ------- 
------
    Net loss                                        (27,978)    (537)  (8,927)
(5,284)
    Net loss attributable to
     noncontrolling interest                            (78)     (99)    (349)
(228)
    ------------------------                            ---      ---     ---- 
----
    Net loss attributable to
     Atlantic Power
     Corporation                                   $(27,900)   $(438) $(8,578)
$(5,056)
    >>

    <<
    Net loss per share
     attributable to Atlantic
     Power Corporation
     Shareholders:
       Basic                                         $(0.40)  $(0.01)  $(0.13)
$(0.08)
       Diluted                                       $(0.40)  $(0.01)  $(0.13)
$(0.08)
    >>

    <<
    Weighted average number of
     common shares
     outstanding:
       Basic                                         68,910   60,511   68,384 
60,466
       Diluted                                       66,910   60,511   68,384 
60,466




    >>

    <<
    Atlantic Power Corporation
    Consolidated Statements of Cash Flows (in thousands of U.S.
     dollars)
    (Unaudited)
    >>

    <<
                                                       Nine months ended
                                                         September 30,
                                                        2011            2010
                                                        ----            ----
    Cash flows from operating activities:
    Net loss                                         $(8,927)        $(5,284)
    Adjustments to reconcile to net cash
     provided by operating activities
        Depreciation and amortization                 32,711          30,224
        Long-term incentive plan expense               2,257           3,287
        Gain on step-up valuation of Rollcast
         acquisition                                       -            (211)
        Equity in earnings from unconsolidated
         affiliates                                   (5,647)        (12,550)
        Distributions from unconsolidated
         affiliates                                   15,542           9,897
        Unrealized foreign exchange loss              28,175           4,369
        Change in fair value of derivative
         instruments                                  12,497          20,946
        Change in deferred income taxes              (10,315)         10,555
    Change in other operating balances
        Accounts receivable                              258          (3,072)
        Prepayments, refundable income taxes and
         other assets                                   (570)          1,189
        Accounts payable and accrued liabilities       1,536           3,747
        Other liabilities                             (1,178)            576
        -----------------                             ------             ---
    Net cash provided by operating activities         66,339          63,673
    >>

    <<
    Cash flows used in investing activities:
        Acquisitions and investments, net of cash
         acquired                                          -         (41,182)
        Change in restricted cash                    (12,379)         (7,398)
        Proceeds from sale of equity investments       8,500               -
        Proceeds from Idaho Wind loan                 15,455               -
        Short-term loan to Idaho Wind                      -         (12,801)
        Biomass development costs                       (753)         (1,827)
        Purchase of property, plant and equipment    (79,070)         (2,077)
        -----------------------------------------    -------          ------
    Net cash used in investing activities            (68,247)        (65,285)
    >>

    <<
    Cash flows used in financing activities:
        Proceeds from project-level debt              65,374               -
        Repayment of project-level debt              (13,166)        (11,841)
        Equity investment from noncontrolling
         interest                                          -             200
        Proceeds from revolving credit facility
         borrowings                                        -          20,000
        Dividends paid                               (57,543)        (47,599)
        --------------                               -------         -------
    Net cash used in financing activities             (5,335)        (39,240)
    -------------------------------------             ------         -------
    Net decrease in cash and cash equivalents         (7,243)        (40,852)
    Cash and cash equivalents at beginning of
     period                                           45,497          49,850
    -----------------------------------------         ------          ------
    Cash and cash equivalents at end of
     period                                          $38,254          $8,998
    Supplemental cash flow information
        Interest paid                                $21,567         $16,587
        Income taxes refunded, net                     $(352)        $(1,607)
        Accruals for capital expenditures            $19,547               -




    Regulation G Disclosures
    >>

Cash Available for Distribution is not a measure recognized under U.S. generally accepted accounting principles ("GAAP") and does not have a standardized meaning prescribed by GAAP. Management believes Cash Available for Distribution is a relevant supplemental measure of the Company's ability to earn and distribute cash returns to investors. A reconciliation of Cash Flows from Operating Activities to Cash Available for Distributions is provided below. Investors are cautioned that the Company may calculate this measure in a manner that is different from other companies.

Project Adjusted EBITDA, earnings before interest, taxes, depreciation and amortization (including non-cash impairment charges), is not a measure recognized under GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers and does not have a standardized meaning prescribed by GAAP. Management uses Project Adjusted EBITDA at the Project-level to provide comparative information about project performance. A reconciliation of Project Adjusted EBITDA to project income is provided on the following page. Investors are cautioned that the Company may calculate this measure in a manner that is different from other issuers.

    <<



    >>

    <<
    Atlantic Power Corporation
    Cash Available for Distribution
    (In thousands of U.S. dollars, except as otherwise
     stated)
    (Unaudited)
    >>

    <<
                                     Three months          Nine months
                                            ended                ended
                                    September 30,        September 30,
                                   2011      2010       2011       2010
                                   ----      ----       ----       ----
    Cash flows from operating
     activities                 $21,624   $27,695    $66,339    $63,673
    Project-level debt
     repayments                  (2,825)   (2,700)   (13,166)   (11,841)
    Purchase of property,
     plant and equipment(1)        (268)     (557)      (814)    (2,077)
    Transaction Costs(2)          8,470         -      9,238          -
    -----------------------       -----       ---      -----        ---
    Cash Available for
     Distribution(3)             27,001    24,438     61,597     49,755
    >>

    <<
    Total dividends to
     shareholders                19,010    15,904     57,552     47,618
    ------------------           ------    ------     ------     ------
    >>

Payout ratio 70% 65% 93% 96%

    <<
    Expressed in Cdn$
    Cash Available for
     Distribution                26,833    25,404     60,520     51,552
    >>

    <<
    Total dividends to
     shareholders                18,874    16,556     56,259     49,639
    ------------------           ------    ------     ------     ------

    >>

    <<
    (1) Excludes construction-in-progress related to our Piedmont biomass
     project.
    (2) Represents costs associated with the CPILP acquisition.
    (3) Cash Available for Distribution is not a recognized measure under
     GAAP and does not have any standardized meaning prescribed by GAAP.
     Therefore, this measure may not be comparable to similar measures
     presented by other companies. See "Supplementary Non-GAAP Financial
     Information".




    >>

    <<
    Atlantic Power Corporation
    Project Adjusted EBITDA (in thousands of U.S. dollars)
    (Unaudited)
    >>

    <<
                                              Three months       Nine months
                                                  ended             ended
                                             September 30,      September 30,
                                             2011       2010     2011     
2010
                                             ----       ----     ----     
----
    Project Adjusted EBITDA by
     individual segment
        Auburndale                        $10,158    $10,018  $32,077  
$29,820
        Lake                                8,517      9,325   25,431   
23,937
        Pasco                               1,149      1,335    1,541    
3,752
        Path 15                             7,117      7,318   20,873   
21,348
        Chambers                            3,358      4,637   12,389   
14,780
        --------                            -----      -----   ------   
------
    Total                                  30,299     32,633   92,311   
93,637
    Other Project Assets
        Selkirk                             4,322      3,927    8,636   
10,983
        Orlando                             1,824      2,185    4,917    
5,856
        Cadillac                            2,178          -    6,569        
-
        Gregory                             1,027      1,373    2,755    
3,656
        Idaho Wind                            747          -    2,798        
-
        Badger Creek                          (63)       699      738    
2,209
        Delta Person                          561        461    1,403    
1,365
        Koma Kulshan                          374         53      808      
606
        Rollcast                             (348)      (249)  (1,121)    
(628)
        Piedmont                              (14)         -      (75)       
-
        Topsham                                 -        415        -    
1,378
        Other                                  73         46       88     
(244)
        -----                                 ---        ---      ---     
----
    Total Adjusted EBITDA from
     Other Project Asset segment           10,681      8,910   27,516   
25,181
    Total adjusted EBITDA from
     all Projects                          40,980     41,543  119,827  
118,818
        Depreciation and amortization      17,824     16,349   52,922   
49,331
        Interest expense, net               6,624      5,906   19,952   
17,784
        Change in the fair value of
         derivative instruments            10,871     10,706   12,913   
23,435
        Other expense                       1,310        948    1,789    
1,229
    Project income as reported in
     the statement of operations           $4,351     $7,634  $32,251  
$27,039
    -----------------------------          ------     ------  -------  
-------




    >>

SOURCE Atlantic Power Corporation

For further information: Web Site: http://www.atlanticpower.com


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.