Boralex in 2008: Best Results in its History



    MONTREAL, Feb. 26 /CNW Telbec/ - In 2008, Boralex Inc. ("Boralex" or the
"Corporation") achieves its best operational results in its history.

    
    (in millions of dollars, except per share data)
    -------------------------------------------------------------------------
                                Three months ended       Twelve months ended
                         ----------------------------------------------------
                          December 31, December 31, December 31, December 31,
                                 2008         2007         2008         2007
                         ----------------------------------------------------

    Revenue from energy
     sales                       54.3         45.9        197.2        163.3
    EBITDA                       15.6         18.7         68.9         61.3
    Net earnings before
     specific items               4.4          3.2         20.4         17.6
      per share (basic)         $0.12        $0.08        $0.54        $0.51
    Net earnings                  4.4          5.9         20.4         21.5
      per share (basic)         $0.12        $0.16        $0.54        $0.63
    Cash flows from
     operations                  11.1         16.0         55.3         51.5
    -------------------------------------------------------------------------
    

    For the fiscal year ended December 31, 2008, revenue from energy sales
was up 21% to $197.2 million, compared to $163.3 million in 2007. Earnings
before interest, taxes, depreciation and amortization (EBITDA) rose to $68.9
million, versus $61.3 million in 2007, an increase of 12%. Patrick Lemaire,
President and Chief Executive Officer, said that "this strong growth stems
mainly from increases in REC sales in the United States and green certificates
in France, a market that Boralex has always believed in and which will
continue to grow. Our results were also improved by higher energy prices and
electricity production volume."
    Boralex closed fiscal 2008 with net earnings of $20.4 million, down $1.1
million from 2007, mainly due to non-recurring items that were recognized in
2007. Excluding these items, the Corporation has posted 16% growth in net
earnings in 2008.
    In the fourth quarter 2008, Boralex generated revenue of $54.3 million,
up 18% over the same period in 2007. The increase stems from higher production
volume in the wood residue segment, higher average selling prices,
particularly in France, and the positive impact of currency fluctuations.
Consolidated EBITDA for the fourth quarter 2008 amounted to $15.6 million,
versus $18.7 million in 2007. For the three months ended December 31, 2008,
Boralex recorded net earnings of $4.4 million ($0.12 per share), versus $5.9
million for the same quarter in 2007. Excluding the recognition in the fourth
quarter of 2007 of a retroactivity related to RECs sales, the Corporation has
posted EBITDA and net earnings growth of respectively 11% and a 38% in the
fourth quarter 2008.
    More specifically, in fiscal 2008, revenue from energy sales in the wind
power segment increased by $2.8 million to $30.5 million, and EBITDA by $1.2
million to $24.0 million, due to the full contribution from La Citadelle and
expansion of the Avignognet-Lauragais site.
    The hydroelectric segment recorded revenue of $11.8 million in 2008, up
30% from $9.1 million in 2007, and annual EBITDA of $7.9 million versus $5.4
million, an increase of 46%. These gains are largely due to a 24% increase in
power generation volume, arising from much better hydrology than in 2007.
    The wood residue segment recorded revenue of $135.9 million, up $24.0
million over 2007. This increase stems mainly from growth in REC sales and
production volume. This growth also impacted EBITDA, which rose to $40.5
million in 2008 versus $33.1 million in 2007. Results for the natural gas
cogeneration plant also improved, with a $4.5 million increase in energy
sales. Its EBITDA for 2008 was the same as in 2007.
    Addressing Boralex's future prospects, Mr. Lemaire said that "Boralex is
in an excellent position to pursue its growth. Given the current economic
context, Boralex will be very prudent in its choice of investment projects.
Moreover, due to the nature of our operations and our capital structure, we
believe that the current situation could lead to business opportunities that
we will be prepared to act on." Furthermore, this summer Boralex plans to
start up Phase I (installed capacity of 40 MW) of its wind farm in southern
Ontario. Mr. Lemaire added that "Boralex will also draw on its extensive
experience as an operator to maximize the operating profits of its power
stations."
    Lastly, Boralex is working toward the conclusion of a power sale contract
for its Fort Fairfield wood-residue power station for the period after March
1, 2009.

    About Boralex

    Boralex is a major private electricity producer whose core business is
the development and operation of power stations that run on renewable energy.
Employing more than 300 people, the Corporation owns and operates 21 power
stations with a combined installed capacity of 351 MW in Quebec, the
northeastern United States and France. The Corporation also has 226 MW of
contracted capacity for future production sites. Boralex is distinguished by
its leading expertise and long experience in three types of power generation -
wind, hydroelectric and thermal. The Boralex shares trade on the Toronto stock
exchange under the ticker symbol BLX. www.boralex.com
    In addition, Boralex holds a 23% interest in Boralex Power Income Fund
which owns 10 power stations in Quebec and the United States with an installed
capacity of close to 190 MW. Management of the Fund's assets is provided by
Boralex.

    Certain statements in this release, including statements 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, decreased demand for Boralex's products,
increases in raw material costs, fluctuations in currency exchange rates,
fluctuations in sales prices and adverse changes in general market and
industry conditions. The summarized financial statements included in this
press release also contain certain financial measurements that are not
recognized as Generally Accepted Accounting Principles (GAAP).
    To assess the operating performance of its assets and reporting segments,
the Corporation uses Earnings before interest, taxes, depreciation and
amortization (EBITDA), Cash flows from operations and Net earnings before
specific items as performance measurements. These measures are not defined
under GAAP and do not have a standardized meaning prescribed by GAAP.
Therefore, they may not be comparable to similar measures presented by other
enterprises. EBITDA and Net earnings before specific items are defined in the
summarized financial statements included with this press release. Cash flows
from operations corresponds to cash flow from operating activities before
changes in non-cash working capital balances as disclosed in the consolidated
statements of cash flows attached in this press release.

    Notice to shareholders

    The interim financial statements as at December 31, 2008 and 2007 have
not been reviewed by our auditors PricewaterhouseCoopers LLP. The financial
statements are the responsability of the Management of Boralex Inc. They have
been reviewed and approved by its Board of Directors, as recommended by its
Audit Committee.
    The following financial informations were extracted from the interim
consolidated financial statements of Boralex Inc. The complete interim
financial statements were prepared conformingly with the Canadian generally
accepted accounting principles (GAAP). They are available on the Boralex's
website (www.boralex.com) and filed with SEDAR.

    
    Consolidated Financial Statements

    Consolidated Balance Sheets
    (in thousands of dollars)
    (unaudited)

                                                          As at        As at
                                                    December 31, December 31,
                                                           2008         2007
    -------------------------------------------------------------------------

    Assets

    Current assets
    Cash and cash equivalents                            69,195       79,195
    Accounts receivable                                  48,812       39,200
    Future income taxes                                     238        2,394
    Inventories                                           8,833        8,002
    Prepaid expenses                                      2,106        2,171
    -------------------------------------------------------------------------
                                                        129,184      130,962

    Investment                                           69,348       67,321
    Property, plant and equipment                       330,443      258,712
    Electricity sales contracts                          26,402       18,527
    Other assets                                         68,121       39,209
    -------------------------------------------------------------------------
                                                        623,498      514,731
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities             22,113       20,869
    Income taxes payable                                  1,716        1,481
    Other liabilities                                     5,718            -
    Current portion of long-term debt                    29,410       26,786
    -------------------------------------------------------------------------
                                                         58,957       49,136

    Long-term debt                                      158,035      148,747
    Future income taxes                                  39,616       23,430
    Fair value of derivative financial instruments        3,000        1,400
    Other liabilities                                         -        6,642
    Non-controlling interests                               805          607
    -------------------------------------------------------------------------
                                                        260,413      229,962
    Shareholders' equity
    Capital stock                                       222,694      221,557
    Contributed surplus                                   3,069        1,974
    Retained earnings                                   135,783      115,669
    Accumulated other comprehensive loss                  1,539      (54,431)
    -------------------------------------------------------------------------
                                                        363,085      284,769
    -------------------------------------------------------------------------
                                                        623,498      514,731
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Earnings
    (in thousands of dollars,
     except per-share amounts
     and number of shares)
    (unaudited)
                                           For the                   For the
                               three-month periods      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Revenue from energy sales  54,316       45,907      197,246      163,338
    Renewable energy tax
     credits                    3,400        2,500       12,463       12,033
    Operating costs            41,683       28,173      138,327      110,965
    -------------------------------------------------------------------------
                               16,033       20,234       71,382       64,406

    Share in earnings of
     the Fund                   1,607        1,293        7,826        6,830
    Management revenue from
     the Fund                   1,352        1,393        5,395        5,601
    Other revenue               1,691          278        2,850        1,946
    -------------------------------------------------------------------------
                               20,683       23,198       87,453       78,783
    -------------------------------------------------------------------------
    Other expenses
    Management and operation
     of the Fund                1,014        1,103        4,065        4,510
    Administration costs        4,065        3,420       14,479       12,989
    -------------------------------------------------------------------------
                                5,079        4,523       18,544       17,499
    -------------------------------------------------------------------------
    Operating earnings before
     amortization              15,604       18,675       68,909       61,284
    -------------------------------------------------------------------------

    Amortization                6,312        5,484       24,533       21,627
    Foreign exchange loss
     (gain)                      (834)         (73)      (1,437)         531
    Financial instruments          49          752          143       (5,491)
    Financing costs             3,836        2,782       13,807       14,685
    -------------------------------------------------------------------------
                                9,363        8,945       37,046       31,352
    -------------------------------------------------------------------------

    Earnings before income
     taxes                      6,241        9,730       31,863       29,932
    Income tax expense          1,825        3,783       11,321        8,457
    -------------------------------------------------------------------------
                                4,416        5,947       20,542       21,475
    Non-controlling interests     (34)        (34)         (146)          70
    -------------------------------------------------------------------------
    Net earnings                4,382        5,913       20,396       21,545
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings per Class A
     share (basic)
     (in dollars)                0.12         0.16         0.54         0.63
    Net earnings per Class A
     share (diluted)
     (in dollars)                0.12         0.15         0.54         0.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number
     of Class A shares
     outstanding (basic)   37,740,921   37,454,625   37,739,840   34,403,033
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Retained Earnings
    (in thousands of dollars)
    (unaudited)
                                                                     For the
                                                        twelve-month periods
                                                           ended December 31,
                                                           2008         2007
    -------------------------------------------------------------------------

    Balance - beginning of period                       115,669       97,649
    Share issuance expenses, net of related taxes             -       (3,525)
    Share redemption premium                               (282)           -
    Net earnings for the period                          20,396       21,545
    -------------------------------------------------------------------------
    Balance - end of period                             135,783      115,669
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Income
    (in thousands of dollars)
    (unaudited)
                                           For the                   For the
                               three-month periods      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Net earnings for the
     period                     4,382        5,913       20,396       21,545
    -------------------------------------------------------------------------

    Other comprehensive
     income (loss):
      Translation adjustments
        Unrealized foreign
         exchange gains
         (losses) on
         translation of
         financial
         statements of
         self-sustaining
         foreign operations    30,571         (483)      41,046      (24,395)
        Unrealized foreign
         exchange gains
         related to the
         reduction of
         net investment
         in self-sustaining
         foreign operations    (1,285)           -       (1,285)           -
        Share of cumulative
         translation
         adjustments of the
         Fund                   3,429          161        4,297       (2,670)
        Taxes                    (784)        (722)      (1,012)         519
      Cash flow hedges
        Change in fair value
         of financial
         instruments           12,890          884       23,541        2,828
        Hedging items
         realized and
         recognized in
         net earnings          (6,654)        (255)      (5,484)      (1,959)
        Hedging items
         realized and
         recognized in
         balance sheet              -            -         (673)           -
        Termination of
         hedging
         relationships              -            -            -       (5,874)
        Taxes                    (893)        (202)      (4,460)       1,602
    -------------------------------------------------------------------------
                               37,274         (617)      55,970      (29,949)
    -------------------------------------------------------------------------
    Comprehensive income
     (loss) for the period     41,656        5,296       76,366       (8,404)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Cash Flows
    (in thousands of dollars)
    (unaudited)
                                           For the                   For the
                               three-month periods      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Operating activities
    Net earnings                4,382        5,913       20,396       21,545
    Distributions received
     from the Fund              2,409        3,098       10,326       12,391
    Adjustments for non-cash
     items
      Share in earnings of
       the Fund                (1,607)      (1,293)      (7,826)      (6,830)
      Amortization              6,312        5,484       24,533       21,627
      Amortization of deferred
       financing costs and
       monetization program
       expenses                   784          737        2,928        2,795
      Renewable energy tax
       credits                 (1,588)      (1,099)      (4,583)      (4,460)
      Future income taxes       1,331        2,390        9,406        8,348
      Financial instruments        49          752          143       (5,491)
      Other                      (935)          34          (49)       1,623
    -------------------------------------------------------------------------
                               11,137       16,016       55,274       51,548
    Change in non-cash
     working capital balances   6,287       (9,995)      (1,005)     (16,491)
    -------------------------------------------------------------------------
                               17,424        6,021       54,269       35,057
    -------------------------------------------------------------------------
    Investing activities
    Business acquisitions           -            -       (5,781)           -
    Purchase of property,
     plant and equipment      (11,293)      (5,586)     (44,577)     (22,478)
    Change in debt servicing
     reserves                      49          (41)          21        6,175
    Development projects         (517)      (1,994)      (5,617)      (4,609)
    Other                      (2,208)        (154)      (3,748)      (2,595)
    -------------------------------------------------------------------------
                              (13,969)      (7,775)     (59,702)     (23,507)
    -------------------------------------------------------------------------
    Financing activities
    Decrease in bank loans
     and advances                (448)           -            -            -
    Increase in long-term debt    126            -          126      151,437
    Payments on long-term debt (1,602)      (1,468)     (19,258)    (198,454)
    Monetization program and
     related expenses               -            -            -       (1,632)
    Financing costs                 -          (52)           -         (593)
    Share repurchase             (665)           -         (859)           -
    Net proceeds from share
     issuance                       -            -        1,714      105,307
    Other                          30            -           36          (50)
    -------------------------------------------------------------------------
                               (2,559)      (1,520)     (18,241)      56,015
    -------------------------------------------------------------------------
    Translation adjustment on
     cash and cash equivalents  9,588          585       13,674       (2,269)
    -------------------------------------------------------------------------
    Net change in cash and
     cash equivalents          10,484       (2,689)     (10,000)      65,296

    Cash and cash equivalents
     - beginning of period     58,711       81,884       79,195       13,899
    -------------------------------------------------------------------------

    Cash and cash equivalents
     - end of period           69,195       79,195       69,195       79,195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUPPLEMENTAL INFORMATION
    Cash and cash equivalents
     paid for:
      Interests                 2,543        2,406        9,816       11,522
      Income taxes                462           59        1,783        1,065
    -------------------------------------------------------------------------


    Segmented Information
    (tabular amounts in thousands of dollars, unless otherwise specified)
    (unaudited)

    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 power generation. The classification
of these segments is based on the different cost structures relating to each
type of power station.
    The Corporation analyzes the performance of its operating segments based
on their EBITDA, which is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is not a measure of performance under
Canadian generally accepted accounting principles; however, management uses
this performance 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      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Net earnings                4,382        5,913       20,396       21,545
    Non-controlling interests      34           34          146          (70)
    Income tax expense          1,825        3,783       11,321        8,457
    Financing costs             3,836        2,782       13,807       14,685
    Financial instruments          49          752          143       (5,491)
    Foreign exchange loss
     (gain)                      (834)         (73)      (1,437)         531
    Amortization                6,312        5,484       24,533       21,627
    -------------------------------------------------------------------------
    Consolidated EBITDA        15,604       18,675       68,909       61,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    To analyze its results, Boralex uses another non-GAAP performance measure,
namely "net earnings excluding specific items." This measure, which may not be
comparable to similarly named measures reported by other companies since it is
a non-GAAP measure, is mainly used to evaluate results excluding specific
items. The measure also makes 2008 results comparable with those of 2007. The
items excluded are those that Boralex deems unlikey to recur in coming years.
The following table reconciles this measure with net earnings according to
GAAP:

                                           For the                   For the
                               three-month periods      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    Net earnings - calculated
     according to GAAP          4,382        5,913       20,396       21,545
    Cumulative recognition of
     Livermore RECs in Q4-2007      -       (4,600)           -            -
    Gain on termination of
     hedging relationships          -            -            -       (5,875)
    Taxes                           -        1,840            -        1,881
    -------------------------------------------------------------------------
    Net earnings excluding
     specific items             4,382        3,153       20,396       17,551
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Information by operating segment

                                           For the                   For the
                               three-month periods      twelve-month periods
                                 ended December 31,        ended December 31,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------

    PRODUCTION (in MWh)
    Wind power stations        56,683       60,592      220,500      208,710
    Hydroelectric power
     stations                  34,833       31,887      132,057      106,762
    Wood-residue thermal
     power stations           295,213      275,059    1,232,907    1,190,265
    Natural gas thermal
     power stations            15,260       16,219       37,829       38,421
    -------------------------------------------------------------------------
                              401,989      383,757    1,623,293    1,544,158
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    REVENUE FROM ENERGY SALES
    Wind power stations         7,942        8,554       30,543       27,730
    Hydroelectric power
     stations                   2,844        2,524       11,753        9,139
    Wood-residue thermal
     power stations            37,040       29,973      135,897      111,861
    Natural gas thermal
     power station              6,490        4,857       19,053       14,609
    Corporate and eliminations      -           (1)           -           (1)
    -------------------------------------------------------------------------
                               54,316       45,907      197,246      163,338
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA
    Wind power stations         6,059        7,021       24,041       22,826
    Hydroelectric power
     stations                   1,647        1,651        7,919        5,435
    Wood-residue thermal
     power stations             9,064       10,674       40,488       33,052
    Natural gas thermal
     power station              1,378          717        2,338        2,272
    Corporate and eliminations (2,544)      (1,388)      (5,877)      (2,301)
    -------------------------------------------------------------------------
                               15,604       18,675       68,909       61,284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    PURCHASE OF PROPERTY,
     PLANT AND EQUIPMENT
    Wind power stations         9,352        3,250       31,485       16,644
    Hydroelectric power
     stations                      33          355           89        1,172
    Wood-residue thermal
     power stations             1,291        1,893        8,527        4,233
    Natural gas thermal
     power station                 12            -           81           25
    Corporate and eliminations    605           88        4,395          404
    -------------------------------------------------------------------------
                               11,293        5,586       44,577       22,478
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                          As at        As at
                                                    December 31, December 31,
                                                           2008         2007
    -------------------------------------------------------------------------
    ASSETS
    Wind power stations                                 243,374      196,814
    Hydroelectric power stations                         23,019       12,427
    Wood-residue thermal power stations                 183,881      130,728
    Natural gas thermal power station                    17,216       16,132
    Corporate and eliminations                          156,008      158,630
    -------------------------------------------------------------------------
                                                        623,498      514,731
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




For further information:

For further information: Ms. Patricia Lemaire, Director, Public Affairs
and Communications, Boralex Inc., (514) 985-1353,
patricia.lemaire@boralex.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890