Boralex: Revenue Up in First Quarter 2009



    MONTREAL, May 11 /CNW Telbec/ - Boralex Inc. ("Boralex" or the
"Corporation") increased its energy sales revenue by 5% to $57.2 million in
the first quarter 2009 compared to the same period in 2008.

    
    (in millions of dollars, except per share data)
    -------------------------------------------------------------------------
                                                         Three months ended
                                                -----------------------------
                                                        March 31,   March 31,
                                                            2009        2008
                                                -----------------------------
    Revenue from energy sales                               57.2        54.5
    EBITDA                                                  21.0        23.9
    Net earnings                                             7.2         9.2
    Net earnings per share (basic)                    $     0.19  $     0.25
    Cash flows from operations                              15.3        20.7
    -------------------------------------------------------------------------
    

    The revenue increase stems mainly from the favourable impact of the
depreciation of the Canadian dollar in relation to the U.S. dollar and the
euro, combined with the positive impact of the higher average price of the
electricity sold by Boralex. The increase occurred despite an 11% decline in
total power generation, stemming mainly from less favourable climate
conditions compared to the corresponding quarter of 2008 in the wind and
hydroelectric segments and targeted shutdowns by wood-residue thermal power
plants outside rush periods. Earnings before interest, taxes, depreciation and
amortization (EBITDA) amounted to $21.0 million in the first quarter 2009
compared to $23.9 million a year earlier. The 12% decrease is mainly due to
higher development costs related to Boralex's growth strategy, higher
maintenance costs and a lower contribution from the Boralex Power Income Fund.
Boralex closed the first quarter 2009 with net earnings of $7.2 million, or
$0.19 per share (basic and diluted), compared to $9.2 million or $0.25 per
share (basic) for the same period in 2008.
    In the first quarter, unfavourable climate conditions resulted in lower
power generation at the wind power sites, slightly reducing revenue from this
segment by $1.0 million to $9.1 million and EBITDA by $1.3 million, closing at
$7.2 million. For the hydroelectric power stations, hydrology was not as good
as in the first quarter of 2008, but was still higher than historical
averages. This, combined with lower power prices on the New York State open
electricity market, resulted in revenue of $2.8 million for the three months
ended March 31, 2009, down $1.0 million from the same period in 2008. The
wood-residue thermal power segment recorded growth of 12.7% in revenue and
6.3% in EBITDA, amounting respectively to $38.2 million and $11.8 million for
the first quarter of 2009. This growth is due to an increase of 10.5% (in $US)
of the average electricity selling price in this segment, due to our forward
sales contract strategy. Lastly, in the first quarter of 2009, revenue from
energy sales in the natural gas-fired thermal power station was up 7.5%, and
EBITDA 15.4%, due mainly to the sale of excess CO2 quota.
    Boralex is proud of its cash balance of $62 million as at March 31, 2009.
Given the current market situation, Boralex can count on this significant
level of cash to take advantage of business opportunities as they arise and
continue to grow.
    "Although it will be hard to equal the record operating results of 2008
in 2009, we are expecting good overall performance in most of our segments",
said Mr. Patrick Lemaire, President and Chief Executive Officer of Boralex. In
fact, Boralex's financial health and operational reliability ensure a
promising future for the Corporation's development projects. "Despite the
current recession, Boralex continues to prepare for the longer-term outlook.
We are also watching for the business opportunities that will certainly
present themselves in the current economic context. We will also continue to
explore the potential of new technologies for producing renewable energy, and
will pay close attention to the responsible management of our operating costs,
business risk and capital structure", said Mr. Lemaire. Boralex still plans to
start up Phase 1 of the 40 MW Thames River wind farm in Ontario in the third
quarter 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 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. www.boralex.com
    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.

    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 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 smilar 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 financial statements as at March 31, 2009 and 2008 have not
been reviewed by our auditors PricewaterhouseCoopers LLP. The financial
statements are the responsibility of the management of Boralex Inc. They have
been reviewed and approved by the Board of Directors on the recommendation of
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 Balance Sheets

                                                           AS AT       AS AT
                                                           MARCH    DECEMBER
                                                              31,         31,
    (in thousands of dollars) (unaudited)                   2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)
    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                             62,391      69,195
    Accounts receivable                                   43,116      48,812
    Future income taxes                                      391         238
    Inventories                                           12,735       8,833
    Prepaid expenses                                       3,360       2,106
    -------------------------------------------------------------------------
                                                         121,993     129,184
    Investment                                            69,779      69,348
    Property, plant and equipment                        331,072     330,443
    Power sales contracts                                 25,085      26,402
    Other assets                                          82,496      67,578
    -------------------------------------------------------------------------
                                                         630,425     622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    CURRENT LIABILITIES
    Bank loans and advances                                3,689           -
    Accounts payable and accrued liabilities              19,208      22,115
    Income taxes                                           2,973       1,716
    Other liabilities                                      5,317       5,718
    Current portion of long-term debt                     29,351      29,410
    -------------------------------------------------------------------------
                                                          60,538      58,959
    Long-term debt                                       147,451     158,035
    Future income taxes                                   42,250      39,437
    Fair value of derivative financial instruments         5,889       3,000
    Non-controlling interests                                580         804
    -------------------------------------------------------------------------
                                                         256,708     260,235
    -------------------------------------------------------------------------
    SHAREHOLDERS' EQUITY
    Capital stock                                        222,694     222,694
    Contributed surplus                                    3,326       3,069
    Retained earnings                                    142,673     135,461
    Accumulated other comprehensive income                 5,024       1,496
    -------------------------------------------------------------------------
                                                         373,717     362,720
    -------------------------------------------------------------------------
                                                         630,425     622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Consolidated Statements of Earnings

                                                            FOR THE QUARTERS
    (in thousands of dollars, except amounts                  ENDED MARCH 31,
     per share and number of shares) (unaudited)            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)

    Revenue from energy sales                             57,198      54,455
    Renewable energy tax credits                           3,488       3,122
    Operating costs                                       39,653      33,953
    -------------------------------------------------------------------------
                                                          21,033      23,624
    Share in earnings of the Fund                          2,303       3,248
    Management revenues from the Fund                      1,380       1,341
    Other revenues                                         1,504         163
    -------------------------------------------------------------------------
                                                          26,220      28,376
    -------------------------------------------------------------------------

    OTHER EXPENSES
    Management and operation of the Fund                   1,129         938
    Administrative expenses                                4,139       3,547
    -------------------------------------------------------------------------
                                                           5,268       4,485
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    OPERATING EARNINGS BEFORE AMORTIZATION                20,952      23,891

    Amortization                                           6,465       5,810
    Foreign exchange gain                                    (43)       (474)
    Financial instruments                                   (115)        319
    Financing costs                                        3,418       3,466
    -------------------------------------------------------------------------
                                                           9,725       9,121
    -------------------------------------------------------------------------
    EARNINGS BEFORE INCOME TAXES                          11,227      14,770

    Income taxes                                           3,956       5,444
    -------------------------------------------------------------------------
                                                           7,271       9,326
    Non-controlling interests                                (59)        (94)
    -------------------------------------------------------------------------
    NET EARNINGS                                           7,212       9,232

    Net earnings per Class A share (basic)            $     0.19  $     0.25
    Net earnings per Class A share (diluted)          $     0.19  $     0.24
    Weighted average number of Class A shares
     outstanding (basic)                              37,740,921  37,566,967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Retained Earnings

                                                            FOR THE QUARTERS
                                                              ENDED MARCH 31,
    (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                            7,212       9,232
    -------------------------------------------------------------------------
    Balance - end of period                              142,673     124,565
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Income

                                                            FOR THE QUARTERS
                                                              ENDED MARCH 31,
    (in thousands of dollars) (unaudited)                   2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)

    Net earnings for the period                            7,212       9,232
    -------------------------------------------------------------------------

    Other comprehensive income
    TRANSLATION ADJUSTMENTS
    Unrealized foreign exchange gains on translation
     of financial statements of self-sustaining
     foreign operations                                    4,751       9,053
    Foreign exchange gains related to the reduction
     of net investment in self-sustaining foreign
     operations                                              (65)          -
    Share of cumulative translation adjustments
     of the Fund                                             539         591
    Taxes                                                   (127)        (78)
    CASH FLOW HEDGES
    Change in fair value of financial instruments          6,726        (463)
    Hedging items realized and recognized in net
     earnings                                             (6,677)       (121)
    Hedging items realized and recognized in
     balance sheet                                        (1,097)          -
    Taxes                                                    (42)        187
    -------------------------------------------------------------------------
                                                           4,008       9,169
    -------------------------------------------------------------------------
    Comprehensive income for the period                   11,220      18,401
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Cash Flows

                                                            FOR THE QUARTERS
                                                              ENDED MARCH 31,
    (in thousands of dollars) (unaudited)                   2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)

    OPERATING ACTIVITIES
    Net earnings                                           7,212       9,232
    Distributions received from the Fund                   2,409       3,098
    Adjustments for non-cash items
      Financial instruments                                 (115)        319
      Share in earnings of the Fund                       (2,303)     (3,248)
      Amortization                                         6,465       5,810
      Amortization of deferred financing
       costs and monetization program expenses               772         708
      Renewable energy tax credits                          (867)     (1,093)
      Future income taxes                                  2,143       5,442
      Other                                                 (395)        479
    -------------------------------------------------------------------------
                                                          15,321      20,747
    Change in non-cash working capital items              (1,040)     (5,213)
    -------------------------------------------------------------------------
                                                          14,281      15,534
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Additions to property, plant and equipment            (6,763)     (4,327)
    Change in debt servicing reserves                        (21)        (29)
    Development projects                                  (5,885)    (14,227)
    Other                                                 (3,324)       (478)
    -------------------------------------------------------------------------
                                                         (15,993)    (19,061)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Increase in bank loans and advances                    3,689           -
    Payments on long-term debt                            (6,691)     (9,000)
    Net proceeds from share issuance                           -       1,466
    -------------------------------------------------------------------------
                                                          (3,002)     (7,534)
    -------------------------------------------------------------------------
    TRANSLATION ADJUSTMENT ON CASH AND CASH
     EQUIVALENTS                                          (2,090)      2,361
    -------------------------------------------------------------------------
    NET CHANGE IN CASH AND CASH EQUIVALENTS               (6,804)     (8,700)
    CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD       69,195      79,195
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS - END OF PERIOD             62,391      70,495

    SUPPLEMENTAL INFORMATION
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS PAID FOR:
      Interest                                             2,116       2,442
      Income taxes                                           269         303
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    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 QUARTERS
                                                              ENDED MARCH 31,
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)

    Net earnings                                           7,212       9,232
    Non-controlling interests                                 59          94
    Income taxes                                           3,956       5,444
    Financing costs                                        3,418       3,466
    Financial instruments                                   (115)        319
    Foreign exchange gain                                    (43)       (474)
    Amortization                                           6,465       5,810
    -------------------------------------------------------------------------
    EBITDA                                                20,952      23,891
    -------------------------------------------------------------------------


    INFORMATION BY SEGMENT                                  FOR THE QUARTERS
                                                              ENDED MARCH 31,
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    POWER GENERATION (MWh)
    Wind power stations                                   60,761      75,822
    Hydroelectric power stations                          35,666      43,380
    Wood-residue thermal power stations                  296,688     327,908
    Natural gas thermal power station                     22,613      22,493
    -------------------------------------------------------------------------
                                                         415,728     469,603
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    REVENUE FROM ENERGY SALES
    Wind power stations                                    9,083      10,065
    Hydroelectric power stations                           2,760       3,790
    Wood-residue thermal power stations                   38,181      33,877
    Natural gas thermal power station                      7,174       6,723
    -------------------------------------------------------------------------
                                                          57,198      54,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    EBITDA
    Wind power stations                                    7,215       8,504
    Hydroelectric power stations                           1,709       3,034
    Wood-residue thermal power stations                   11,803      11,071
    Natural gas thermal power station                      1,511       1,321
    Corporate and eliminations                            (1,286)        (39)
    -------------------------------------------------------------------------
                                                          20,952      23,891
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
    Wind power stations                                    5,141       2,686
    Hydroelectric power stations                               -           6
    Wood-residue thermal power stations                    1,459       1,200
    Natural gas thermal power station                         22           -
    Corporate and eliminations                               141         435
    -------------------------------------------------------------------------
                                                           6,763       4,327
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                           AS AT       AS AT
                                                           MARCH    DECEMBER
                                                              31,         31,
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                   (RESTATED)

    ASSETS
    Wind power stations                                  236,075     242,944
    Hydroelectric power stations                          24,776      23,019
    Wood-residue thermal power stations                  192,098     183,881
    Natural gas thermal power station                     17,920      17,151
    Corporate and eliminations                           159,556     155,960
    -------------------------------------------------------------------------
                                                         630,425     622,955
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




For further information:

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


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