OAKVILLE, ON, March 6, 2014 /CNW/ - Algonquin Power & Utilities Corp.
(TSX: AQN) ("APUC"), today announced financial results for the fourth
quarter and year ended December 31, 2013.
For the fourth quarter of 2013, revenue was $205.3 million compared to
$138.9 million in the fourth quarter of 2012. The increase in revenue
over the same period in 2012 is primarily the result of regulated
utility acquisitions including the Peach State and New England Gas
Systems, increased customer demand at EnergyNorth Gas System and
Granite State Electric System, the acquisitions of the U.S. Wind
Facilities, and the impact of the weaker U.S. dollar. For the year
2013, APUC generated revenue of $675.3 million compared to $348.8
million in 2012.
APUC reported net earnings from continuing operations of $19.8 million
or $0.09 per share in the fourth quarter of 2013 compared to net
earnings from continuing operations of $6.8 million or $0.04 per share
in the fourth quarter of 2012. For the year 2013, APUC reported net
earnings from continuing operations of $62.3 million or $0.28 per share
compared to $13.5 million or $0.08 per share in 2012.
APUC reported adjusted net earnings1 of $18.5 million or $0.08 per share in the fourth quarter of 2013
compared to adjusted net earnings1 of $6.5 million or $0.03 per share in the fourth quarter of 2012. For
the year 2013, APUC reported adjusted net earnings1 of $60.9 million or $0.27 per share compared to $18.9 million or $0.11
per share in 2012.
Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
("Adjusted EBITDA" 1) was $67.6 million in the fourth quarter of 2013 compared to $24.0
million in the fourth quarter of 2012. The increase in Adjusted EBITDA1 is primarily due to acquisitions completed in 2012 and 2013, the impact
of rate case settlements, increased hydrology and increased customer
demand at the electric distribution utility in California. APUC
generated Adjusted EBITDA1 of $226.9 million in 2013 compared to $88.1 million in 2012.
Fourth Quarter Growth Highlights:
During the quarter, APUC completed the previously announced acquisition
of the New England Gas System, a natural gas distribution utility
serving over 55,000 connections in Massachusetts. The total purchase
price of the New England Gas System was $59.5 million.
In November 2013, APUC announced its intention to acquire the remaining
40% of a 400 MW wind power portfolio in the United States for total
consideration of $117 million. APUC currently owns a 60% controlling
interest in the portfolio therefore no additional ongoing management or
administrative costs are expected to be incurred. The 400 MW wind
portfolio consists of three facilities, Minonk (200 MW), Senate (150
MW), and Sandy Ridge (50 MW) located in the states of Illinois, Texas,
and Pennsylvania, respectively.
Additionally in November 2013, APUC announced it entered into an
agreement to purchase and complete the construction of a 20 MWac Solar
Facility in California. Following commissioning, the project is
expected to generate 53.3 GW-hrs of energy per year. All energy will be
sold to PG&E pursuant to a 20 year agreement with expected first full
year revenues of U.S. $4.7 million. Construction of the project is
anticipated to commence in the second quarter of 2014 with a commercial
operations date expected in late 2014.
Fourth Quarter Corporate Highlights:
During the fourth quarter, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on APUC and its subsidiaries to 'BBB'
from 'BBB-'. As well, Standard & Poor's raised its global scale and
Canada scale preferred stock ratings on APUC to 'BB+' and 'P-3 (High)'
from 'BB' and 'P-3', respectively. According to Standard & Poor's, the
upgrade reflects a significant increase in regulated cash flow owing to
a number of acquisitions in the past 18 months.
Subsequent to the end of the year, on March 5, 2014, APUC issued 4.0
million cumulative rate resent preferred shares, Series D at a price of
$25 per share, for aggregate gross proceeds of $100 million. The
preferred shares yield 5.0% annually for the initial five-year period
ending March 31, 2019. The preferred shares have been assigned a rating
of P-3 (High) and Pfd-3 (Low) by S&P and DBRS respectively. The net
proceeds of the offering will be used to partially finance certain of
APUC's previously disclosed growth opportunities, reduce amounts
outstanding on APUC's credit facilities and for general corporate
"Last year was a transformative year for APUC with the completion of
several acquisitions and a number of initiatives that have raised the
overall growth profile of the company," commented Chief Executive
Officer Ian Robertson. "We have succeeded in creating an effective
growth platform to continue expanding both our power generation and
utility businesses across North America well into 2014 and beyond."
APUC's supplemental information is available on the web site at www.algonquinpowerandutilities.com.
APUC will hold an earnings conference call at 9:00 a.m. eastern time on
Friday, March 7, 2014, hosted by Chief Executive Officer, Ian Robertson
and Chief Financial Officer, David Bronicheski.
Conference call details:
Date: Friday, March 7, 2014
Start Time: 9:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4859 or Local 416-644-3414.
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 4663454# from March 7, 2014 until March 21,
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities owns and operates a diversified $3.2
billion portfolio of regulated and non-regulated utilities in North
America. The regulated utility business provides water, electricity and
natural gas utility services to over 470,000 customers through a
portfolio of regulated generation, transmission and distribution
utility systems. The 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 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, AQN.PR.A and AQN.PR.D.
Visit Algonquin Power & Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information and non-GAAP Financial
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.
(1) Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures
The terms "adjusted net earnings" and Adjusted EBITDA, are used in this
press release. The terms "adjusted net earnings" and Adjusted EBITDA
are not recognized measures under GAAP. There is no standardized
measure of "adjusted net earnings" and Adjusted EBITDA, consequently
APUC's method of calculating these measures may differ from methods
used by other companies and therefore may not be comparable to similar
measures presented by other companies. A calculation and analysis of
"adjusted net earnings" and Adjusted EBITDA can be found in the
Management's Discussion & Analysis for the year ended December 31,
Adjusted net earnings
Adjusted net earnings is a non-GAAP metric used by many investors to
compare net earnings from operations without the effects of certain
volatile primarily non-cash items that generally have no current
economic impact or items such as acquisition expenses or litigation
expenses and are viewed as not directly related to a company's
operating performance. Net earnings of APUC can be impacted positively
or negatively by gains and losses on derivative financial instruments,
including foreign exchange forward contracts, interest rate swaps and
energy forward purchase contracts as well as to movements in foreign
exchange rates on foreign currency denominated debt and working capital
balances. Adjusted weighted average shares outstanding represents
weighted average shares outstanding adjusted to remove the dilution
effect related to shares issued in advance of funding requirements.
APUC uses adjusted net earnings to assess its performance without the
effects of (as applicable): gains or losses on foreign exchange,
foreign exchange forward contracts, interest rate swaps, acquisition
costs, litigation expenses and write down of intangibles and property,
plant and equipment, earnings or loss from discontinued operations and
other typically non-recurring items as these are not reflective of the
performance of the underlying business of APUC. APUC believes that
analysis and presentation of net earnings or loss on this basis will
enhance an investor's understanding of the operating performance of its
businesses. It is not intended to be representative of net earnings or
loss determined in accordance with GAAP.
EBITDA is a non-GAAP metric used by many investors to compare companies
on the basis of ability to generate cash from operations. APUC uses
these calculations to monitor the amount of cash generated by APUC as
compared to the amount of dividends paid by APUC. APUC uses Adjusted
EBITDA to assess the operating performance of APUC without the effects
of (as applicable): depreciation and amortization expense, income tax
expense or recoveries, acquisition costs, litigation expenses, interest
expense, gain or loss on derivative financial instruments, write down
of intangibles and property, plant and equipment, earnings attributable
to non-controlling interests and gain or loss on foreign exchange,
earnings or loss from discontinued operations and other typically
non-recurring items. APUC adjusts for these factors as they may be
non-cash, unusual in nature and are not factors used by management for
evaluating the operating performance of the company. APUC believes that
presentation of this measure will enhance an investor's understanding
of APUC's operating performance. Adjusted EBITDA is not intended to be
representative of cash provided by operating activities or results of
operations determined in accordance with GAAP.
SOURCE: Algonquin Power & Utilities Corp.
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500