Boralex Announces a Good Performance in the Second Quarter



    MONTREAL, Aug. 7 /CNW Telbec/ - In the second quarter of 2009, Boralex
Inc. ("Boralex" or the "Corporation") reported revenue from energy sales was
up 5% to $41.8 million compared to the same quarter in 2008. The increase
stems from the higher power generation at its power stations, mainly in the
wind power segment.

    
    (in millions of dollars, except per share data)
    -------------------------------------------------------------------------
                                     Three-month              Six-month
                                    periods ended           periods ended
                               ----------------------------------------------
                                 June 30,    June 30,    June 30,    June 30,
                                    2009        2008        2009        2008
                               ----------------------------------------------

    Revenue from energy sales       41.8        39.7        99.0        94.1
    EBITDA                          12.9        12.6        33.9        36.5
    Net earnings                     1.8         1.1         9.0        10.3
    Net earnings per share
     (basic)                       $0.05       $0.03       $0.24       $0.27
    Cash flow from operations       11.6         9.4        26.9        30.2
    -------------------------------------------------------------------------
    

    For the three-month period ended June 30, 2009, earnings before interest,
taxes, depreciation and amortization (EBITDA) amounted to $12.9 million, an
increase over the same period in 2008. A significant drop in maintenance and
raw material costs, primarily in the wood-residue sector, the positive impact
of higher volume of electricity production, particularly in the wind power
segment and the acquisition of the Ocean Falls hydroelectric power station
were the factors which contributed to this increase in EBITDA. The Corporation
closed the second quarter 2009 with net earnings of $1.8 million or $0.05 per
share, compared to $1.1 million or $0.03 per share in the corresponding
quarter of 2008.
    In the second quarter of 2009, the wind power segment recorded revenue
from energy sales of $8.0 million, up 20%, and EBITDA of $6.2 million, up 24%
over the same quarter in 2008. Growth is mainly due to the 17% increase in
quarterly production volume.
    The hydroelectric segment posted revenues of $2.8 million, down $0.4
million from the corresponding period in 2008, and EBITDA of $1.8 million,
down $0.6 million. These results are mainly due to lower electricity prices
(in US$) on the New York State electricity market. The decrease was mitigated
by the integration of the Ocean Falls power station in British Columbia in
April and the 18% increase in production volume by the other power stations.
    The wood-residue thermal power segment recorded revenues of $28.3 million
representing a 5% improvement in 2009. The increase is partially due to the
rise in the U.S. dollar, but mostly to the hedging of our electricity prices
on the U.S. market, a strategy which enabled the Corporation to almost
completely offset the decrease in prices on the open market in the
northeastern United States. EBITDA for this segment also rose 20%, to $8.1
million against the same quarter in 2008. Higher quarterly EBITDA stems mainly
from lower maintenance costs spread across all facilities and lower raw
material prices.
    The cash balance as of June 30, 2009 stood at $52 million, which gives
the Corporation good financial flexibility and available cash for the
development of future projects.
    "Boralex is still looking for acquisitions, especially if they have the
potential for operating results in the near term" said Mr. Patrick Lemaire,
President and Chief Executive Officer. "The longer term outlook for Boralex is
favourable, given the quality and highly diversified distribution of our
assets and our expertise in the production of green and renewable energy, all
part of a growing global trend" concluded Mr. Lemaire.

    About Boralex

    Boralex is a major private electricity producer whose core business is
the development and operation of power stations that generate renewable
energy.
    Employing over 300 people, the Corporation owns and operates 22 power
stations with a total installed capacity of 365 MW in Canada, in the
Northeastern United States and in France. In addition, the Corporation has
more than 300 MW of power projects under development. Boralex is distinguished
by its diversified expertise and in-depth experience in three power generation
segments - wind, hydroelectric and thermal. Boralex shares are listed on the
Toronto Stock Exchange under the ticker symbol BLX.
    Boralex also holds a 23% interest in Boralex Power Income Fund, which has
10 power stations with a total installed capacity of 190 MW in Québec and the
United States. These sites are managed by Boralex.

    More information is available at www.boralex.com or www.sedar.com

    Certain statements in this release, including those 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 on market and industry, increases in raw material
costs, changes in the relative values of certain currencies, fluctuations in
selling prices, and other factors listed in the Company's filings with
different securities commissions.
    The summarized financial statements included in this press release also
contain certain financial measurements that are not recognized as Generally
Accepted Accounting Principles of Canada (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. These measures are not
defined under GAAP of Canada and do not have a standardized meaning prescribed
by GAAP. Therefore, they 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 items as disclosed in the consolidated statements of cash flows
attached in this press release.

    Notice to shareholders

    The interim consolidated financial statements as at June 30, 2009 and
2008 have not been reviewed by our auditors PricewaterhouseCoopers LLP. The
financial statements are the responsibility of the management of Boralex Inc.,
and have been reviewed and approved by the Board of Directors on the
recommendation of its Audit Committee.
    The following financial information was extracted from the interim
consolidated financial statements of Boralex Inc. The complete interim
financial statements were prepared in accordance with the Canadian generally
accepted accounting principles ("GAAP"). They are available on the Boralex's
website (www.boralex.com) and filed with SEDAR.

    
    Consolidated Balance Sheets

                                                         AS AT         AS AT
                                                       JUNE 30,  DECEMBER 31,

    (in thousands of dollars) (unaudited)                 2009          2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                           51,916        69,195
    Accounts receivable                                 39,563        48,812
    Future income taxes                                    372           238
    Inventories                                          9,965         8,833
    Prepaid expenses                                     2,711         2,106
    -------------------------------------------------------------------------
                                                       104,527       129,184
    Investment                                          66,342        69,348
    Property, plant and equipment                      349,839       330,443
    Power sales contracts                               24,864        26,402
    Other assets                                        85,187        67,578
    -------------------------------------------------------------------------
                                                       630,759       622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    CURRENT LIABILITIES
    Bank loans and advances                             14,326             -
    Accounts payable and accrued liabilities            29,486        22,115
    Income taxes                                         1,879         1,716
    Other liabilities                                    4,111         5,718
    Current portion of long-term debt                   30,792        29,410
    -------------------------------------------------------------------------
                                                        80,594        58,959
    Long-term debt                                     151,068       158,035
    Future income taxes                                 38,996        39,437
    Fair value of derivative financial instruments       4,701         3,000
    Non-controlling interests                              130           804
    -------------------------------------------------------------------------
                                                       275,489       260,235
    -------------------------------------------------------------------------
    SHAREHOLDERS' EQUITY
    Capital stock                                      222,694       222,694
    Contributed surplus                                  3,584         3,069
    Retained earnings                                  144,490       135,461
    Accumulated other comprehensive income             (15,498)        1,496
    -------------------------------------------------------------------------
                                                       355,270       362,720
    -------------------------------------------------------------------------
                                                       630,759       622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Earnings

                                             FOR THE                 FOR THE
    (in thousands of dollars,    THREE-MONTH PERIODS       SIX-MONTH PERIODS
     except amounts per share          ENDED JUNE 30,          ENDED JUNE 30,
     and number of shares)
     (unaudited)                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                           (RESTATED)              (RESTATED)
    Revenues from energy
     sales                        41,756      39,664      98,954      94,119
    Renewable energy tax
     credits                       3,488       2,409       6,976       5,531
    Operating costs               29,201      28,683      68,854      62,638
    -------------------------------------------------------------------------
                                  16,043      13,390      37,076      37,012
    Share in earnings of the
     Fund                            549       1,790       2,852       5,038
    Management revenues from
     the Fund                      1,369       1,352       2,749       2,693
    Other revenues                   153         482       1,658         645
    -------------------------------------------------------------------------
                                  18,114      17,014      44,335      45,388
    -------------------------------------------------------------------------
    OTHER EXPENSES
    Management and operation
     of the Fund                   1,208       1,039       2,337       1,977
    Administrative expenses        3,964       3,399       8,103       6,945
    -------------------------------------------------------------------------
                                   5,172       4,438      10,440       8,922
    -------------------------------------------------------------------------
    OPERATING EARNINGS BEFORE
     AMORTIZATION                 12,942      12,576      33,895      36,466
    Amortization                   6,483       5,995      12,947      11,806
    Foreign exchange loss
     (gain)                            9          56         (35)       (418)
    Net loss (gain) on
     financial instruments          (290)        785        (404)      1,104
    Financing costs                3,448       2,991       6,867       6,455
    -------------------------------------------------------------------------
                                   9,650       9,827      19,375      18,947
    -------------------------------------------------------------------------
    EARNINGS BEFORE INCOME
     TAXES                         3,292       2,749      14,520      17,519
    Income taxes                   1,479       1,625       5,435       7,069
    -------------------------------------------------------------------------
                                   1,813       1,124       9,085      10,450
    Non-controlling interests          4         (23)        (56)       (117)
    -------------------------------------------------------------------------
    NET EARNINGS                   1,817       1,101       9,029      10,333

    Net earnings per Class A
     share (basic)                 $0.05       $0.03       $0.24       $0.27
    Net earnings per Class A
     share (diluted)               $0.05       $0.03       $0.24       $0.27
    Weighted average number
     of Class A shares
     outstanding (basic)      37,740,921  37,818,503  37,740,921  37,692,735
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Retained Earnings

                                                                     FOR THE
                                                           SIX-MONTH PERIODS
                                                               ENDED JUNE 30,

    (in thousands of dollars) (unaudited)                 2009          2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)
    Balance - beginning of period, as previously
     reported                                          135,783       115,669
    Application of Section 3064                           (322)         (336)
    -------------------------------------------------------------------------
    Balance - beginning of period                      135,461       115,333
    Net earnings for the period                          9,029        10,333
    -------------------------------------------------------------------------
    Balance - end of period                            144,490       125,666
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Income (Loss)

                                             FOR THE                 FOR THE
                                 THREE-MONTH PERIODS       SIX-MONTH PERIODS
                                       ENDED JUNE 30,          ENDED JUNE 30,
    (in thousands of dollars)
     (unaudited)                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                           (RESTATED)              (RESTATED)

    Net earnings for the
     period                        1,817       1,101       9,029      10,333
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss)
      TRANSLATION ADJUSTMENTS
      Unrealized foreign
       exchange loss (gain)
       on translation of
       financial statements
       of self-sustaining
       foreign operations        (15,869)     (1,677)    (11,118)      7,376
      Foreign exchange gain
       related to the
       reduction of net
       investment in self-
       sustaining foreign
       operations                      -           -         (65)          -
      Share of cumulative
       translation
       adjustments of the
       Fund                       (1,576)       (422)     (1,037)        169
      Taxes                          417          74         290          (4)
      CASH FLOW HEDGES
      Change in fair value
       of financial
       instruments                 2,474     (15,874)      9,200     (16,337)
      Hedging items realized
       and recognized in net
       earnings                   (6,083)      1,340     (12,760)      1,219
      Hedging items realized
       and recognized in
       balance sheet              (1,164)          -      (2,261)          -
      Taxes                        1,279       4,651       1,237       4,838
    -------------------------------------------------------------------------
                                 (20,522)    (11,908)    (16,514)     (2,739)
    -------------------------------------------------------------------------
    Comprehensive income
     (loss) for the period       (18,705)    (10,807)     (7,485)      7,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Cash Flows

                                             FOR THE                 FOR THE
                                 THREE-MONTH PERIODS       SIX-MONTH PERIODS
                                       ENDED JUNE 30,          ENDED JUNE 30,
    (in thousands of dollars)
     (unaudited)                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                           (RESTATED)              (RESTATED)
    OPERATING ACTIVITIES
    Net earnings                   1,817       1,101       9,029      10,333
    Distributions received
     from the Fund                 2,410       2,409       4,819       5,507
    Adjustments for non-cash
     items
      Financial instruments          114         785          (1)      1,104
      Share in earnings of
       the Fund                     (549)     (1,790)     (2,852)     (5,038)
      Amortization                 6,483       5,995      12,947      11,806
      Amortization of
       deferred financing
       costs and monetization
       program expenses              735         724       1,507       1,432
      Renewable energy tax
       credits                      (850)       (396)     (1,717)     (1,489)
      Future income taxes            508         513       2,650       5,955
      Other                          909          86         518         565
    -------------------------------------------------------------------------
                                  11,577       9,427      26,900      30,175
    Change in non-cash
     working capital items        14,442       8,578      13,397       3,364
    -------------------------------------------------------------------------
                                  26,019      18,005      40,297      33,539
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Business acquisitions         (4,769)       (625)     (4,769)       (625)
    Additions to property,
     plant and equipment         (27,985)     (8,963)    (34,747)    (13,290)
    Change in cash reserves       (1,520)        (25)     (1,541)        (54)
    Development projects            (151)       (856)     (6,036)    (15,083)
    Acquisition of minority
     interest                       (968)          -        (968)          -
    Other                         (2,502)     (1,085)     (5,825)     (1,563)
    -------------------------------------------------------------------------
                                 (37,895)    (11,554)    (53,886)    (30,615)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Increase in bank loans
     and advances                 10,636           -      14,326           -
    Payments on long-term
     debt                         (4,266)     (1,194)    (10,957)    (10,194)
    Financing costs                 (219)         (1)       (219)         (1)
    Net proceeds from share
     issuance                          -         239           -       1,705
    -------------------------------------------------------------------------
                                   6,151        (956)      3,150      (8,490)
    -------------------------------------------------------------------------
    TRANSLATION ADJUSTMENT
     ON CASH AND CASH
     EQUIVALENTS                  (4,750)      1,913      (6,840)      4,274
    -------------------------------------------------------------------------
    NET CHANGE IN CASH AND
     CASH EQUIVALENTS            (10,475)      7,408     (17,279)     (1,292)
    CASH AND CASH EQUIVALENTS
     - BEGINNING OF PERIOD        62,391      70,495      69,195      79,195
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS
     - END OF PERIOD              51,916      77,903      51,916      77,903
    -------------------------------------------------------------------------
    SUPPLEMENTAL INFORMATION
    CASH AND CASH EQUIVALENTS
     PAID FOR:
      Interest                     2,024       2,418       4,140       4,860
      Income taxes                     -         645         248         948
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Segmented information

    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 cost structures relating
to each of the four types of power stations.
    The Corporation analyzes the performance of its operating segments based
on their earnings before interest, taxes, depreciation and amortization
("EBITDA"). EBITDA is not a measure of performance under Canadian GAAP.
    However, management uses this measure to assess the operating performance
of its 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                 FOR THE
                                 THREE-MONTH PERIODS       SIX-MONTH PERIODS
                                       ENDED JUNE 30,          ENDED JUNE 30,

                                    2009        2008      2009          2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                           (RESTATED)              (RESTATED)

    Net earnings                   1,817       1,101       9,029      10,333
    Non-controlling interests         (4)         23          56         117
    Income taxes                   1,479       1,625       5,435       7,069
    Financing costs                3,448       2,991       6,867       6,455
    Net loss (gain) on
     financial instruments          (290)        785        (404)      1,104
    Foreign exchange loss
     (gain)                            9          56         (35)       (418)
    Amortization                   6,483       5,995      12,947      11,806
    -------------------------------------------------------------------------
    EBITDA                        12,942      12,576      33,895      36,466
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    INFORMATION BY SEGMENT

                                             FOR THE                 FOR THE
                                 THREE-MONTH PERIODS       SIX-MONTH PERIODS
                                       ENDED JUNE 30,          ENDED JUNE 30,

                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    POWER GENERATION (MWH)
    Wind power stations           55,157      47,331     115,919     123,153
    Hydroelectric power
     stations                     41,066      32,322      76,732      75,702
    Wood-residue thermal
     power stations              257,714     255,226     554,402     583,134
    Natural gas thermal power
     station                          30          76      22,642      22,569
    -------------------------------------------------------------------------
                                 353,967     334,955     769,695     804,558
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    REVENUE FROM ENERGY SALES
    Wind power stations            8,018       6,677      17,101      16,742
    Hydroelectric power
     stations                      2,842       3,200       5,601       6,989
    Wood-residue thermal
     power stations               28,338      27,113      66,520      60,990
    Natural gas thermal power
     station                       2,558       2,675       9,732       9,398
    Corporate and
     eliminations                      -          (1)          -           -
    -------------------------------------------------------------------------
                                  41,756      39,664      98,954      94,119
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    EBITDA
    Wind power stations            6,242       5,043      13,456      13,547
    Hydroelectric power
     stations                      1,785       2,391       3,494       5,425
    Wood-residue thermal
     power stations                8,148       6,795      19,951      17,866
    Natural gas thermal power
     station                        (145)       (204)      1,366       1,117
    Corporate and
     eliminations                 (3,088)     (1,449)     (4,372)     (1,489)
    -------------------------------------------------------------------------
                                  12,942      12,576      33,895      36,466
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    ADDITIONS TO PROPERTY,
     PLANT AND EQUIPMENT
    Wind power stations           24,712       2,346      29,853       5,032
    Hydroelectric power
     stations                        719           2         719           8
    Wood-residue thermal
     power stations                2,292       5,808       3,750       7,008
    Natural gas thermal
     power station                     6          16          28          16
    Corporate and
     eliminations                    256         791         397       1,226
    -------------------------------------------------------------------------
                                  27,985       8,963      34,747      13,290
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                         AS AT         AS AT
                                                       JUNE 30,  DECEMBER 31,

                                                          2009          2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)
    ASSETS
    Wind power stations                                254,596       242,944
    Hydroelectric power stations                        46,477        23,019
    Wood-residue thermal power stations                168,491       183,881
    Natural gas thermal power station                   14,032        17,151
    Corporate and eliminations                         147,163       155,960
    -------------------------------------------------------------------------
                                                       630,759       622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




For further information:

For further information: Ms. Sophie Paquet, Communications Advisor,
Boralex Inc., (514) 985-1353, sophie.paquet@boralex.com


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