Algonquin Power Income Fund Announces Fourth Quarter and Year End 2007 Financial Results



    OAKVILLE, ON, March 6 /CNW/ - Algonquin Power Income Fund (TSX: APF.UN)
(the "Fund" or "Algonquin Power") today announced financial results for the
fourth quarter and year ended December 31, 2007.
    For the fourth quarter of 2007, revenue totalled $44.3 million as
compared to $52.0 million in the fourth quarter of 2006. The decrease in
revenue for the quarter is primarily due to lower than long term average
hydrology and lower production at the Sanger facility as compared to the same
period in the prior year due to the re-powering project. For the year ended
December 31, 2007, the Fund reported revenue of $186.2 million as compared to
$193.2 million in 2006. The decrease in revenue for the year is primarily due
to lower than long term average hydrology and lower average energy rates at
the Fund's Windsor Locks facility. The decrease was partially offset by
increased energy rates at the Fund's United States ("U.S.") hydroelectric
facilities, increased energy production in the cogeneration division, strong
performance at the St. Leon Wind Energy ("St. Leon") facility, and increased
rates charged at one of the Fund's waste-water treatment facilities.
    Net earnings from continuing operations in the fourth quarter of 2007
were $8.8 million as compared to net earnings of $3.7 million for the fourth
quarter of 2006. Net earnings per trust unit in the fourth quarter of 2007
were $0.12 as compared to net earnings per trust unit of $0.06 in the same
period in 2006. The increase in net earnings during the fourth quarter is
primarily due to an increased income tax recovery booked in the quarter,
partially offset by lower reported earnings from the U.S. operating facilities
due to the stronger Canadian dollar. For the year ended December 31, 2007, net
earnings from continuing operations totaled $24.8 million as compared to
$30.7 million in 2006. The decrease is primarily due to an increased income
tax expense booked in the year related to Bill C-52, increased average
borrowings over the year, increased amortization expenses, and lower reported
earnings from the U.S. operating facilities due to the stronger Canadian
dollar.
    Cash available for distribution in the fourth quarter of 2007 was
$19.9 million or $0.26 per unit as compared to $17.5 million or $0.23 per unit
in the fourth quarter of 2006. During the fourth quarter, Algonquin Power
Income Fund distributed $0.23 per trust unit, consistent with the amount
distributed during the same period in 2006. Cash available for distribution
for the year ended December 31, 2007 was $72.3 million or $0.95 per unit as
compared to $67.5 million or $0.93 in 2006. During 2007, the Fund distributed
$0.92 per unit, consistent with distributions paid in 2006. The increase in
cash available for distribution for 2007 is primarily due to one time gains
related to the termination fee in connection with the offer for Clean Power
Income Fund, cash from discontinued operations, and adjustments related to the
Fund's investment in the St. Leon facility.

    
    Performance Summary for the fourth quarter of 2007:

    -   Revenue of $44.3 million in Q4 2007 as compared to $52.0 million in
        Q4 2006.

    -   Net earnings from continuing operations of $8.8 million or $0.12 per
        trust unit in Q4 2007 as compared to net earnings of $3.7 million or
        $0.06 per trust unit in Q4 2006.

    -   Cash available for distribution of $19.9 million or $0.26 per trust
        unit in Q4 2007 as compared to $17.5 million or $0.23 per trust unit
        in Q4 2006. Distributions for the fourth quarter of both 2007 and
        2006 were $0.23 per trust unit.

    Performance Summary for the year ended December 31, 2007:

    -   Revenue of $186.2 million for the year 2007 as compared to
        $193.2 million in 2006.

    -   Net earnings from continuing operations of $24.8 million or $0.34 per
        trust unit for the year 2007 as compared to $30.7 million or
        $0.43 per trust unit for 2006.

    -   Cash available for distribution of $72.3 million or $0.95 per trust
        unit in 2007 as compared to $67.5 million or $0.93 per trust unit for
        2006. Distributions for both 2007 and 2006 were $0.92 per trust unit.
    

    "Algonquin Power's key assets performed successfully in 2007 and the Fund
anticipates an exciting year of new growth projects in 2008", commented Dave
Kerr, a senior manager with the Fund. "Algonquin Power's natural gas
cogeneration facilities and 99 MW wind energy facility exceeded Management's
expectations, while lower than average hydrology impacted performance in the
hydroelectric division. The Fund's landfill gas facilities, which were
rationalized in December 2007 also impacted the Fund's performance in 2007.
Looking out to 2008, our development group continues to build a strong
pipeline of growth projects in all of the Fund's divisions, while continuing
to identify organic growth opportunities within the Fund's existing portfolio.
Algonquin Power remains an innovative, respected and responsible investment
opportunity in the clean, renewable power and infrastructure sector,
demonstrating stable performance and solid growth opportunities."
    To view a detailed report of fourth quarter and year end 2007 results
visit www.algonquinpower.com .

    Algonquin Power Income Fund will hold an earnings conference call on
Friday, March 7, 2008, hosted by Executive Directors, David Kerr and Chris
Jarratt. The call is scheduled to begin at 10:00 a.m. eastern time.

    
    Conference call details are as follows:

    Date: Friday, March 7, 2008
    Start Time: 10:00 a.m. eastern
    Phone Number: Toll free within North America: 1-800-731-6941 or local
    416-644-3417.
    Conference IDNo.: 21260701
    

    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 21260701No. from March 7, 2008 until March 14, 2008.

    About Algonquin Power

    Algonquin Power is an open-ended investment trust that owns and has
interests in a diverse portfolio of renewable power generation and sustainable
infrastructure assets across North America, including 42 renewable energy
facilities, 12 thermal energy facilities, and 17 water distribution and
waste-water facilities. Algonquin Power was established in 1997 to provide
investors with sustainable, highly stable cash flows through a diversified
portfolio of renewable energy assets. Algonquin Power's units and convertible
debentures are traded on the Toronto Stock Exchange under the symbols APF.UN,
APF.DB & APF.DB.A and units are included in the S&P/TSX Composite Index.

    %SEDAR: 00009265E




For further information:

For further information: Dave Kerr or Kelly Castledine, Telephone: (905)
465-4500, Algonquin Power Income Fund, 2845 Bristol Circle, Oakville, Ontario,
L6H 7H7


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