Boralex: Strong increase in 2014 financial results

MONTRÉAL, Feb. 19, 2015 /CNW Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) was bolstered by the commissioning of new assets and its targeted acquisition strategy in the wind and hydroelectric power segments, as shown by the strong increase in financial results for fiscal 2014 compared with the previous year.

Boralex President and Chief Executive Officer Patrick Lemaire pointed out, "The results of the 2014 fiscal year show our team's strength in delivering promising projects on an ongoing basis on budget and on schedule, and our capacity to complete complex and value generating financial transactions. Boralex's profile is continuously improving and we intend to leverage this strength to keep growing in Canada and in France for the benefit of our shareholders."

 

FINANCIAL HIGHLIGHTS (on a proportionate consolidation basis)(1)

(in millions of dollars, except per share amounts and EBITDA margin)

Three-month periods ended
December 31
,

Years ended
December 31,


2014

2013

2014

2013

Production (GWh)

560.7

424.7

2,029.5

1,474.6

Revenues from energy sales

67.3

51.9

239.5

171.4

Adjusted EBITDA(2)

44.8

31.4

152.0

101.8

Adjusted EBITDA margin (%)

66.6

60.5

63.5

59.4

Adjusted net earnings (loss) (3)(4)

3.1

0.5

(2.5)

(4.2)


Per share (basic)($)(3)(4)

0.08

0.01

(0.07)

(0.11)

Adjusted cash flows from operations(2)

27.3

16.1

83.7

51.2


Per share(basic)($)(2)

0.72

0.43

2.19

1.36

(1)

See the Reconciliations between IFRS and Proportionate Consolidation and Non-IFRS Measures sections in the financial statements accompanying this press release.

(2)

The 2014 amounts are adjusted for the Enel Green Power France SAS acquisition costs of $5.3 million. See the financial statements accompanying this press release.

(3)

The 2014 amounts are adjusted for the Enel Green Power France SAS acquisition costs (net of taxes) of $4.3 million and the net loss on undesignated financial instruments (net of taxes) of $5.1 million. See the financial statements accompanying this press release.

(4)

Attributable to shareholders of Boralex.

 

The Corporation recorded a 39.7% increase in revenues from energy sales, a 49.3% increase in adjusted EBITDA while the EBITDA margin increased to 63.5% for fiscal 2014 from 59.4% in fiscal 2013. The Corporation's adjusted cash flows from operations totalled $83.7 million or $2.19 per share in 2014, up 63.5% from $51.2 million or $1.36 per share in 2013.

Financial results were also up for the fourth quarter with revenues from energy sales calculated on a proportionate consolidation basis totalling $67.3 million, compared with $51.9 million for the same period last year. Adjusted quarterly EBITDA grew 42.7% while EBITDA margin rose to 66.6% for the three-month period ended December 31, 2014 from 60.5% for the same period in 2013. Last, adjusted cash flows from operations totalled $27.3 million or $0.72 per share for the quarter ended December 31, 2014, up 69.6% from $16.1 million or $0.43 per share for the three-month period ended December 31, 2013.

2014 HIGHLIGHTS
Boralex ended fiscal 2014 with one of its largest acquisitions ever, namely the purchase of Enel Green Power France SAS, which makes Boralex the largest independent wind power producer in France. The acquired assets represent 186.1 MW of installed capacity, 10 MW under construction and an additional pipeline of 310 MW of wind and solar power projects of which 120 MW are at an advanced stage. This acquisition should generate annualized EBITDA of approximately $40 million while immediately and significantly increasing free cash flow per share.

In connection with this $400 million (€280 million) transaction, the Corporation also issued 8,430,000 common shares at a price of $13.05 for a net amount of $106 million and obtained a 15-year non-recourse term loan in the amount of $255 million (€180 million). Furthermore, on January 30, 2015, Boralex issued 1,075,000 common shares following the exercising of the over-allotment option granted to subscribers, generating additional proceeds of $13.5 million for the Corporation.

Also during fiscal 2014, the following assets were completed and commissioned on budget and on schedule.

  • Jamie Creek hydroelectric power station in British Columbia with an installed capacity of 22 MW
  • Fortel-Bonnières wind farm in France with an installed capacity of 23 MW
  • 68 MW Phase II of the Seigneurie de Beaupré Wind Farms in Québec
  • 23.5 MW Témiscouata I wind farm in Québec

RECENT EVENTS
Boralex acquired Touvent, a wind power project in France in early 2015. With a capacity of 13.8 MW, Touvent has a 15-year contract with Électricité de France. Management expects Touvent to generate an annual volume of 30 GWh and EBITDA of about $2.2 million per year. Construction on the project will begin during the third quarter of 2015 with commissioning slated for the third quarter of 2016. Another acquisition was also announced recently, namely a majority interest in the Frampton community wind power project in Québec with a capacity of 24 MW and a 20-year contract with Hydro-Québec. Commissioning is expected for the end of 2015.

OUTLOOK
Boralex's financial growth in the coming years will be driven primarily by the wind power segment expansion, mainly through the integration of sites in operation, the development of the large portfolio of projects acquired from Enel Green Power and the contribution of recently commissioned assets, in addition to the numerous other opportunities created by development activities. Boralex expects its EBITDA to reach $250 million at the end of 2017, representing average annual growth of about 19%.

To support these initiatives, Boralex can rely on its strong statement of financial position and its proven expertise in the development, financing, construction, commissioning and profitable operation of increasingly large-scale energy assets.

ANNUAL REPORT
Boralex's Annual Report will be filed with SEDAR and made available on Boralex's website at the latest March 20, 2015.

About Boralex
Boralex is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. With about 250 employees, Boralex is known for its diversified expertise and in-depth experience in four power generation types — wind, hydroelectric, thermal and solar. Currently, the Corporation operates in Canada, France and the United States an asset base with a capacity of more than 1,100 MW, of which 940 MW are under its control. Boralex is also developing, both independently and with Canadian and European partners, a number of energy projects of which over 150 MW of power will be commissioned by the end of 2016. Boralex's shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB, respectively. More information is available at www.boralex.com or www.sedar.com.

Caution regarding forward-looking statements
Some of the statements contained in this press release, including those regarding future results and performance, are forward-looking statements based on current expectations, within the meaning of securities legislation. Boralex would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results or the measures it adopts could differ materially from those indicated by or underlying these statements, or could have an impact on the degree of realization of a particular projection. The main factors that could lead to a material difference between the Corporation's actual results and the projections or expectations set forth in the forward-looking statements include, but are not limited to, the general impact of economic conditions, raw material price increases and availability, currency fluctuations, volatility in the selling price of electricity, the Corporation's financing capacity, negative changes in general market conditions and regulations affecting the industry, as well as other factors discussed in the Corporation's filings with the various securities commissions.

Unless otherwise specified by the Corporation, the forward-looking statements do not take into account the possible impact on its activities, transactions, non-recurring items or other exceptional items announced or occurring after the statements are made.

There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward-looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements. Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes.

Non-IFRS Measures
The unaudited consolidated financial statements attached to this press release contain a section entitled "Non-IFRS Measures." In order to assess the performance of its assets and reporting segments, Boralex uses EBITDA and cash flows from operations as performance measures. Management believes that these measures are widely accepted financial indicators used by investors to assess the operational performance of a company and its ability to generate cash through operations. These non-IFRS measures are drawn primarily from the unaudited interim condensed consolidated financial statements, but do not have a standardized meaning under IFRS; accordingly, they may not be comparable to similarly named measures used by other companies.

Proportionate consolidation
The unaudited consolidated financial statements attached to this press release contain a section entitled, "Reconciliations between IFRS and Proportionate Consolidation," in which the results of Joint Ventures 50% owned by Boralex are treated as if they were proportionately consolidated and not as if they were accounted for using the equity method as required by IFRS. Since the information that Boralex uses to carry out internal analyses and make strategic and operating decisions is collected on a proportionate consolidation basis, management has considered it relevant to include the "Proportionate Consolidation" section to make it easier for investors to understand the concrete impacts of decisions made by the Corporation. Accordingly, tables included in this section reconcile IFRS data with data presented on a proportionate consolidation basis.

 

Unaudited Consolidated Financial Statements

For the three-month period and year ended December 31, 2014

I A - IFRS - Consolidated Financial Statements


Consolidated Statements of Financial Position





As at
December 31,

As at
December 31,

(in thousands of Canadian dollars) (unaudited)

2014

2013

ASSETS



Cash and cash equivalent

75,394

124,942

Restricted cash

12,459

19,366

Trade and other receivables

59,154

41,625

Inventories

5,620

4,502

Other current financial assets

1,213

Prepaid expenses

5,358

2,945

CURRENT ASSETS

159,198

193,380




Property, plant and equipment

1,215,411

799,213

Other intangible assets

254,007

257,058

Goodwill

134,044

49,890

Interests in the Joint Ventures

91,483

90,880

Deferred income tax asset

13,141

Other non-current financial assets

3,230

289

Other non-current assets

47,445

32,017

NON-CURRENT ASSETS

1,758,761

1,229,347

TOTAL ASSETS

1,917,959

1,422,727

LIABILITIES



Trade and other payables

57,616

57,992

Current portion of debt

172,044

84,034

Current income tax liability

1,601

1,516

Other current financial liabilities

34,116

15,243

CURRENT LIABILITIES

265,377

158,785




Non-current debt

989,087

578,914

Convertible debentures

232,977

229,578

Deferred income tax liability

30,780

37,493

Decommissioning liability

10,773

7,198

Other non-current financial liabilities

33,622

19,704

Other non-current liabilities

19,024

4,921

NON-CURRENT LIABILITIES

1,316,263

877,808

TOTAL LIABILITIES

1,581,640

1,036,593

EQUITY



Equity attributable to shareholders

303,191

356,448

Non-controlling shareholders

33,128

29,686

TOTAL EQUITY

336,319

386,134

TOTAL LIABILITIES AND EQUITY

1,917,959

1,422,727

 


Consolidated Statements of Earnings (Loss)





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except per share amounts) (unaudited)

2014

2013

2014

2013

REVENUES





Revenues from energy sales

53,673

49,496

193,401

169,023

Other income

545

331

1,827

3,009


54,218

49,827

195,228

172,032






COSTS AND OTHER EXPENSES





Operating

17,045

15,952

64,296

54,357

Administrative

3,195

3,263

13,479

13,214

Development

6,465

1,181

10,319

4,145

Amortization

15,832

13,987

60,410

53,888

Other gains

(846)

(1,962)

(232)

Impairment of property, plant and equipment

266


41,691

34,383

146,542

125,638






OPERATING INCOME

12,527

15,444

48,686

46,394






Financing costs

15,926

13,061

58,097

50,693

Foreign exchange loss (gain)

15

(530)

406

(788)

Net loss (gain) on financial instruments

6,031

(69)

8,187

(742)

Share in earnings (losses) of the Joint Ventures

2,570

(329)

3,426

(2,116)

Other

25

63

17

63






EARNINGS (LOSS) BEFORE INCOME TAXES

(6,900)

2,590

(14,595)

(4,948)






Income tax expense (recovery)

(523)

1,624

(854)

537






NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

(6,377)

966

(13,741)

(5,485)






Net earnings from discontinued operations

716

74

2,652

1,774

NET EARNINGS (LOSS)

(5,661)

1,040

(11,089)

(3,711)






NET EARNINGS (LOSS) ATTRIBUTABLE TO:






Shareholders of Boralex

(6,265)

529

(11,767)

(3,838)


Non-controlling shareholders

604

511

678

127

NET EARNINGS (LOSS)

(5,661)

1,040

(11,089)

(3,711)






NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX






Continuing operations

(6,981)

455

(14,419)

(5,612)


Discontinued operations

716

74

2,652

1,774


(6,265)

529

(11,767)

(3,838)






NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX






Continuing operations

($0.18)

$0.01

($0.38)

($0.15)


Discontinued operations

$0.02

$0.07

$0.05


($0.16)

$0.01

($0.31)

($0.10)

 

Consolidated Statements of Comprehensive Income (Loss)





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

NET EARNINGS (LOSS)

(5,661)

1,040

(11,089)

(3,711)






Other comprehensive income (loss) to be subsquently reclassified to net earnings (loss) when certain conditions are met





Translation adjustements:






Unrealized foreign exchange gain (loss) on translation of financial statements of self-sustaining foreign operations

(2,376)

8,116

(2,613)

18,026

Hedge of net investment:






Change in fair value

1,103

1,103


Income taxes

(147)

(147)

Cash flow hedges:






Change in fair value

(5,142)

(99)

(32,680)

7,917


Hedging items realized and recognized in net earnings (loss)

2,849

2,541

11,615

8,361


Income taxes

848

(732)

6,462

(4,819)

Cash flow hedges - Joint Ventures:






Change in fair value

(7,590)

1,443

(23,394)

16,319


Hedging items realized and recognized in net earnings (loss)

1,181

4,798


Hedging items realized and recognized in statement of financial position

709

2,336


Income taxes

1,682

(473)

4,819

(4,855)

Available-for-sale financial asset:






Change in fair value

858


Items realized and recognized in net earnings (loss)

(149)

Total other comprehensive income (loss)

(7,592)

11,505

(30,037)

43,994

COMPREHENSIVE INCOME (LOSS)

(13,253)

12,545

(41,126)

40,283






COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:






Shareholders of Boralex

(13,827)

10,361

(39,070)

35,665


Non-controlling shareholders

574

2,184

(2,056)

4,618

COMPREHENSIVE INCOME (LOSS)

(13,253)

12,545

(41,126)

40,283






COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX






Continuing operations

(14,543)

10,287

(41,722)

33,891


Discontinued operations

716

74

2,652

1,774


(13,827)

10,361

(39,070)

35,665

 


Consolidated Statements of Changes in Equity






2014


Equity attributable to shareholders


(in thousands of Canadian dollars) (unaudited)

Capital

stock

Equity

component of

convertible

debentures

Contributed

surplus

Retained

earnings

Accumulated

other

comprehensive

loss

Total

Non-controlling

shareholders

Total

equity

BALANCE AS AT JANUARY 1, 2014

223,079

14,379

7,730

140,575

(29,315)

356,448

29,686

386,134










Net earnings (loss)

(11,767)

(11,767)

678

(11,089)

Other comprehensive loss

(27,303)

(27,303)

(2,734)

(30,037)

COMPREHENSIVE LOSS

(11,767)

(27,303)

(39,070)

(2,056)

(41,126)










Dividends

(19,896)

(19,896)

(2,050)

(21,946)

Conversion of convertibles debentures

318


318

318

Exercise of options

4,860

4,860

4,860

Stock option expense

536

536

536

Excess of proceeds on repurchase by non-controlling shareholders

(5)

(5)

(2)

(7)

Contribution of non-controlling shareholders

7,550

7,550

BALANCE AS AT DECEMBER 31, 2014

228,257

14,379

8,266

108,907

(56,618)

303,191

33,128

336,319






2013


Equity attributable to shareholders


(in thousands of Canadian dollars) (unaudited)

Capital
stock

Equity

component of

convertible

debentures

Contributed

surplus

Retained

earnings

Accumulated

other

comprehensive

loss

Total

Non-controlling

shareholders

Total

equity

BALANCE AS AT JANUARY 1, 2013

222,870

14,379

6,945

144,492

(68,818)

319,868

22,501

342,369










Net earnings (loss)

(3,838)

(3,838)

127

(3,711)

Other comprehensive income

39,503

39,503

4,491

43,994

COMPREHENSIVE INCOME (LOSS)

(3,838)

39,503

35,665

4,618

40,283










Conversion of convertibles debentures

94

94

94

Exercise of options

115

115

115

Stock option expense

785

785

785

Excess of proceeds on repurchase by non-controlling shareholders

(79)

(79)

(26)

(105)

Contribution of non-controlling shareholders

2,593

2,593

BALANCE AS AT DECEMBER 31, 2013

223,079

14,379

7,730

140,575

(29,315)

356,448

29,686

386,134

 

Consolidated Statements of Cash Flows





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss)

(5,661)

1,040

(11,089)

(3,711)

Less: Net earnings from discontinued operations

716

74

2,652

1,774

Net earnings (loss) from continuing operations

(6,377)

966

(13,741)

(5,485)

Financing costs

15,926

13,061

58,097

50,693

Interest paid

(14,632)

(14,280)

(53,298)

(48,905)

Income tax expense (recovery)

(523)

1,624

(854)

537

Income tax paid

(64)

(647)

(2,940)

(3,372)

Non-cash items in earnings (loss):






Net loss (gain) on financial instruments

6,031

(69)

8,187

(742)


Share in results of the Joint Ventures

(2,570)

329

(3,426)

2,116


Amortization

15,832

13,987

60,410

53,888


Impairment of property, plant and equipment

266


Other

360

351

1,246

1,920


13,983

15,322

53,681

50,916

Change in non-cash items related to operating activities

(10,779)

(12,610)

(2,020)

8,350

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

3,204

2,712

51,661

59,266






Business acquisitions, net of cash acquired

(188,948)

(196,879)

Additions to property, plant and equipment

(47,620)

(28,395)

(167,686)

(107,479)

Change in restricted cash

(5,146)

(9,529)

7,277

(18,890)

Increase in interest in Joint Ventures

(7,181)

(2,781)

(13,253)

(8,318)

Increase in non-current assets

(1,350)

Change in reserve funds

(6,252)

23

(6,825)

(13,956)

Development projects

(1,279)

(2,177)

(6,881)

(9,666)

Proceeds from the disposal of assets held for sale

21,983

21,983

Other

(60)

(232)

(491)

(74)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(234,503)

(43,091)

(364,105)

(158,383)






Net increase in non-current debt

451,881

29,439

589,006

209,739

Repayment of debt assumed on business acquisition

(233,314)

(233,314)

Repayments on non-current debt

(4,761)

(4,097)

(84,582)

(101,471)

Contribution of non-controlling shareholders

539

1,856

5,235

2,593

Distribution to non-controlling shareholders

(2,050)

(2,050)

Dividends paid to shareholders of Boralex

(4,993)

(19,896)

Options exercised

151

66

4,860

115

Other

(1)

(41)

(110)

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

207,452

27,264

259,218

110,866

Cash from discontinued operations

843

84

3,122

2,054

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

301

1,906

556

4,001

NET CHANGE IN CASH AND CASH EQUIVALENT

(22,703)

(11,125)

(49,548)

17,804






CASH AND CASH EQUIVALENT - BEGINNING OF PERIOD

98,097

136,067

124,942

107,138

CASH AND CASH EQUIVALENT - END OF PERIOD

75,394

124,942

75,394

124,942

 

I B - IFRS - Business Combination

Business Combination

Acquisition of Enel Green Power France S.A.S.

On December 18, 2014, Boralex acquired all of the issued and outstanding shares of Enel Green Power France S.A.S.  ("EGP France") from Enel Green Power International B.V. ("Vendor"), a wholly-owned subsidiary of Enel Green Power SpA, for a cash consideration of $188,948,000 (€132,272,000). The company has been renamed Boralex Énergie Verte S.A.S. ("BEV"). BEV is an independent power producer headquartered in Lyon, France. As a result of the acquisition, Boralex added to its portfolio (i) 12 operational wind farms with an installed capacity of 186 MW, (ii) one wind farm currently under construction with a projected installed capacity of 10 MW, and (iii) a pipeline of additional wind and solar energy projects.

The total cash consideration paid was financed through cash funds, a $45,000,000 increase to the existing revolving credit facility to $175,000,000, and a $100,000,000 bridge credit facility.

This transaction gave rise to acquisition costs of $5,340,000, which were expensed. This entity was acquired under Boralex's growth strategy through acquisitions aimed at expanding its market share in the French wind power market. The acquisition was accounted for by the Corporation using the acquisition method set out in IFRS 3R, Business Combinations. The statement of financial position and the results of this acquired entity are consolidated as of December 18, 2014.

The following table shows the preliminary purchase price allocation:




Preliminary allocation


(in thousands of $)

(in thousands of €)

Cash

2,138

1,497

Trade and other receivables

7,047

4,934

Other current assets

1,426

998

Assets held for sale

21,983

15,389

Property, plant and equipment

310,232

217,177

Energy sales contracts

2,355

1,649

Goodwill

86,053

60,241

Deferred income tax assets

4,474

3,132

Other non-current assets

110

77

Current liabilities

(8,562)

(5,994)

Assumed non-current debt

(233,314)

(163,331)

Other non-current liabilities

(2,856)

(2,000)

Net assets

191,086

133,769

Less:



Cash at acquisition

2,138

1,497

Total consideration paid for the acquisition

188,948

132,272

 

Trade and other receivables acquired at the time of the transaction had a fair value of $7,047,000 (€4,934,000) and the Corporation expects it will all be received during 2015. Goodwill represents the renewal potential of the energy sales contracts for the 12 operational wind farms, the wind farm currently under construction with a projected installed capacity of 10 MW, the potential for completion of the pipeline of projects, and the expected synergies of consolidating these operations within Boralex. Goodwill will not be deductible for tax purposes.

Assets held for sale comprising a 10 MW wind farm were sold to a third party for $21,983,000 (€15,389,000) on December 23, 2014.

This preliminary purchase price allocation was based on the fair value at the acquisition date and converted using a weighted average rate. The average rate was calculated using the average exchange rate in effect on the date of acquisition and the exchange rate of the financial instrument entered into by the Corporation to hedge €126,000,000 of the acquisition. Following the final purchase price allocation, the Energy sales contracts, Goodwill and Deferred income tax assets items are likely to be adjusted.

Since the acquisition date, the acquired business has contributed $2,109,000 (€1,483,000) to revenues from energy sales and generated net earnings attributable to shareholders of Boralex of $78,000 (€55,000). Had the acquisition occurred on January 1, 2014, the equivalent of 12 months of the earnings would have been included in the consolidated results, and management estimates that consolidated revenues from energy sales and net loss attributable to shareholders of Boralex would have amounted to $239,222,000 and $12,751,000, respectively, for the fiscal year ended December 31, 2014. These estimates are based on the assumption that the fair market value adjustments that were made on the date of acquisition would have been the same had the acquisition occurred on January 1, 2014.

I C - IFRS - Segmented Information

 


Information by Operating Segment





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except MWh) (unaudited)

2014

2013

2014

2013






Power production (MWh)





Wind power stations

245,601

227,195

785,997

682,136

Hydroelectric power stations

154,752

142,912

641,979

621,094

Thermal power stations

34,092

31,448

169,637

143,369

Solar power station

1,080

980

6,259

5,945


435,525

402,535

1,603,872

1,452,544






Revenues from energy sales





Wind power stations

31,278

29,305

102,063

85,109

Hydroelectric power stations

14,312

12,746

58,166

53,756

Thermal power stations

7,569

6,976

30,090

27,446

Solar power station

514

469

3,082

2,712


53,673

49,496

193,401

169,023






EBITDA





Wind power stations

28,123

24,279

86,511

66,594

Hydroelectric power stations

9,730

9,002

42,715

40,413

Thermal power stations

1,188

26

5,247

3,010

Solar power station

391

438

2,634

2,379

Corporate and eliminations

(9,374)

(4,706)

(26,564)

(14,259)


30,058

29,039

110,543

98,137







Information by Geographic Segment





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except MWh) (unaudited)

2014

2013

2014

2013






Power production (MWh)





Canada

167,325

147,212

636,929

571,062

France

184,020

168,452

586,573

493,540

United States

84,180

86,871

380,370

387,942


435,525

402,535

1,603,872

1,452,544






Revenues from energy sales





Canada

20,189

17,317

70,768

63,568

France

26,785

24,884

90,672

73,854

United States

6,699

7,295

31,961

31,601


53,673

49,496

193,401

169,023






EBITDA





Canada

8,947

9,130

33,741

33,554

France

16,352

14,760

52,962

40,719

United States

4,759

5,149

23,840

23,864


30,058

29,039

110,543

98,137

 

I A - Proportionate Consolidation - Consolidated Financial Statements

 

Consolidated Statements of Financial Position





As at
December 31,

As at
December 31,

(in thousands of Canadian dollars) (unaudited)

2014

2013

ASSETS



Cash and cash equivalent

86,845

127,541

Restricted cash

19,814

60,126

Trade and other receivables

71,338

72,758

Inventories

5,631

4,502

Other current financial assets

1,213

Prepaid expenses

5,358

2,945

CURRENT ASSETS

190,199

267,872




Property, plant and equipment

1,644,313

1,179,653

Other intangible assets

254,007

257,058

Goodwill

134,044

49,890

Deferred income tax asset

13,141

Other non-current financial assets

3,230

1,262

Other non-current assets

49,816

35,705

NON-CURRENT ASSETS

2,098,551

1,523,568

TOTAL ASSETS

2,288,750

1,791,440

LIABILITIES



Trade and other payables

64,698

81,607

Current portion of debt

191,762

122,509

Current income tax liability

1,601

1,516

Other current financial liabilities

34,116

15,243

CURRENT LIABILITIES

292,177

220,875




Non-current debt

1,285,258

855,484

Convertible debentures

232,977

229,578

Deferred income tax liability

30,780

37,493

Decommissioning liability

11,936

8,160

Other non-current financial liabilities

50,374

19,704

Other non-current liabilities

49,446

34,366

NON-CURRENT LIABILITIES

1,660,771

1,184,785

TOTAL LIABILITIES

1,952,948

1,405,660

EQUITY



Equity attributable to shareholders

302,674

356,094

Non-controlling shareholders

33,128

29,686

TOTAL EQUITY

335,802

385,780

TOTAL LIABILITIES AND EQUITY

2,288,750

1,791,440

 


Consolidated Statements of Earnings (Loss)





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except per share amounts) (unaudited)

2014

2013

2014

2013

REVENUES





Revenues from energy sales

67,308

51,867

239,506

171,395

Other income

393

342

1,223

2,726


67,701

52,209

240,729

174,121






COSTS AND OTHER EXPENSES





Operating

18,571

16,294

70,162

54,699

Administrative

3,213

3,295

13,581

13,381

Development

6,465

1,181

10,327

4,142

Amortization

20,616

15,595

78,280

55,496

Other gains

(1,192)

(3,272)

(232)

Impairment of property, plant and equipment

266


47,673

36,365

169,078

127,752






OPERATING INCOME

20,028

15,844

71,651

46,369






Financing costs

20,975

15,082

77,787

52,861

Foreign exchange loss (gain)

17

(521)

410

(700)

Net loss (gain) on financial instruments

5,938

(1,309)

8,192

(553)

Other

28

63

20

63






EARNINGS (LOSS) BEFORE INCOME TAXES

(6,930)

2,529

(14,758)

(5,302)






Income tax expense (recovery)

(523)

1,624

(854)

537






NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

(6,407)

905

(13,904)

(5,839)






Net earnings from discontinued operations

716

74

2,652

1,774

NET EARNINGS (LOSS)

(5,691)

979

(11,252)

(4,065)






NET EARNINGS (LOSS) ATTRIBUTABLE TO:






Shareholders of Boralex

(6,295)

468

(11,930)

(4,192)


Non-controlling shareholders

604

511

678

127

NET EARNINGS (LOSS)

(5,691)

979

(11,252)

(4,065)






NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX






Continuing operations

(7,011)

394

(14,582)

(5,966)


Discontinued operations

716

74

2,652

1,774


(6,295)

468

(11,930)

(4,192)






NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX






Continuing operations

($0.18)

$0.01

($0.38)

($0.16)


Discontinued operations

$0.02

$0.07

$0.05


($0.16)

$0.01

($0.31)

($0.11)

 


Consolidated Statements of Cash Flows



Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss)

(5,691)

979

(11,252)

(4,065)

Less: Net earnings from discontinued operations

716

74

2,652

1,774

Net earnings (loss) from continuing operations

(6,407)

905

(13,904)

(5,839)

Financing costs

20,975

15,082

77,787

52,861

Interest paid

(18,552)

(15,515)

(68,155)

(50,136)

Income tax expense (recovery)

(523)

1,624

(854)

537

Income tax paid

(64)

(647)

(2,940)

(3,372)

Non-cash items in earnings (loss):






Net loss (gain) on financial instruments

5,938

(1,309)

8,192

(553)


Amortization

20,616

15,595

78,280

55,496


Impairment of property, plant and equipment

266


Other

25

351

(53)

1,920


22,008

16,086

78,353

51,180

Change in non-cash items related to operating activities

(12,554)

1,044

23,912

8,698

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

9,454

17,130

102,265

59,878






Business acquisitions, net of cash acquired

(188,948)

(196,879)

Additions to property, plant and equipment

(76,146)

(82,942)

(251,562)

(323,415)

Change in restricted cash

14,990

(46,921)

40,682

(53,063)

Increase in non-current assets

(4,006)

Change in reserve funds

(6,252)

23

(6,825)

(13,956)

Development projects

(1,279)

(2,177)

(6,881)

(9,666)

Proceeds from the disposal of assets held for sale

21,983

21,983

Other

(60)

(232)

(491)

(74)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(235,712)

(132,249)

(403,979)

(400,174)






Net increase in non-current debt

457,217

105,958

629,358

453,517

Repayment of debt assumed on business acquisition

(233,314)

(233,314)

Repayments on non-current debt

(9,214)

(4,097)

(126,812)

(101,471)

Contribution of non-controlling shareholders

539

1,856

5,235

2,593

Distribution to non-controlling shareholders

(2,050)

(2,050)

Dividends paid to shareholders of Boralex

(4,993)

(19,896)

Options exercised

151

66

4,860

115

Other

(1)

(41)

(110)

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

208,335

103,783

257,340

354,644

Cash from discontinued operations

843

84

3,122

2,054

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

301

1,906

556

4,001

NET CHANGE IN CASH AND CASH EQUIVALENT

(16,779)

(9,346)

(40,696)

20,403






CASH AND CASH EQUIVALENT - BEGINNING OF PERIOD

103,624

136,887

127,541

107,138

CASH AND CASH EQUIVALENT - END OF PERIOD

86,845

127,541

86,845

127,541

 

II B - Proportionate Consolidation - Segmented Information

 

Information by Operating Segment





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except MWh) (unaudited)

2014

2013

2014

2013






Power production (MWh)





Wind power stations

370,742

249,276

1,211,629

704,217

Hydroelectric power stations

154,752

142,912

641,979

621,094

Thermal power stations

34,092

31,448

169,637

143,369

Solar power station

1,080

980

6,259

5,945


560,666

424,616

2,029,504

1,474,625






Revenues from energy sales





Wind power stations

44,913

31,676

148,168

87,481

Hydroelectric power stations

14,312

12,746

58,166

53,756

Thermal power stations

7,569

6,976

30,090

27,446

Solar power station

514

469

3,082

2,712


67,308

51,867

239,506

171,395






EBITDA





Wind power stations

36,846

26,136

120,096

69,957

Hydroelectric power stations

9,730

9,002

42,715

40,413

Thermal power stations

1,188

26

5,247

3,010

Solar power station

391

438

2,634

2,379

Corporate and eliminations

(8,731)

(4,226)

(24,053)

(13,923)


39,424

31,376

146,639

101,836



Information by Geographic Segment





Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars, except MWh) (unaudited)

2014

2013

2014

2013






Power production (MWh)





Canada

292,466

169,293

1,062,561

593,143

France

184,020

168,452

586,573

493,540

United States

84,180

86,871

380,370

387,942


560,666

424,616

2,029,504

1,474,625






Revenues from energy sales





Canada

33,824

19,688

116,873

65,940

France

26,785

24,884

90,672

73,854

United States

6,699

7,295

31,961

31,601


67,308

51,867

239,506

171,395






EBITDA





Canada

18,313

11,467

69,837

37,253

France

16,352

14,760

52,962

40,719

United States

4,759

5,149

23,840

23,864


39,424

31,376

146,639

101,836

 

III - Non-IFRS Measures

Non-IFRS Measures

In order to assess the performance of its assets and reporting segments, Boralex uses EBITDA and cash flows from operations as performance measures. Management believes that these measures are widely accepted financial indicators used by investors to assess the operational performance of a company and its ability to generate cash through operations.

These non-IFRS measures do not have a standardized meaning under IFRS; accordingly, they may not be comparable to similarly named measures used by other companies.

This section also shows proportionately consolidated EBITDA, net earnings (loss) attributable to shareholders of Boralex and cash flows from operations where the results of Joint Venture Phases I and II are proportionately consolidated instead of being accounted for using the equity method as required by IFRS. Since the information that Boralex uses to perform internal analyses and make strategic and operating decisions is prepared on a proportionate consolidation basis, management has considered it relevant to include these amounts to help investors understand the concrete impacts of decisions made by the Corporation. Moreover, tables reconciling IFRS data with data presented on a proportionate consolidation basis are provided.

EBITDA

EBITDA does not have a standardized meaning under IFRS; accordingly, it may not be comparable to that of similarly named measures used by other companies. Investors should not view EBITDA as an alternative measure to, for example, net earnings (loss), or as a measure of operating results, which are IFRS measures.

EBITDA is reconciled to the most comparable IFRS measure, namely, net earnings (loss), in the following table:



IFRS


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss)

(5,661)

1,040

(11,089)

(3,711)

Net earnings from discontinued operations

(716)

(74)

(2,652)

(1,774)

Income tax expense (recovery)

(523)

1,624

(854)

537

Net loss (gain) on financial instruments

6,031

(69)

8,187

(742)

Foreign exchange loss (gain)

15

(530)

406

(788)

Financing costs

15,926

13,061

58,097

50,693

Impairment of property, plant and equipment

266

Other gains

(846)

(1,962)

(232)

Amortization

15,832

13,987

60,410

53,888






EBITDA

30,058

29,039

110,543

98,137

Acquisition costs related to the acquisition of BEV

5,340

5,340

EBITDA - ADJUSTED

35,398

29,039

115,883

98,137








Proportionate Consolidation


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss)

(5,691)

979

(11,252)

(4,065)

Net earnings from discontinued operations

(716)

(74)

(2,652)

(1,774)

Income tax expense (recovery)

(523)

1,624

(854)

537

Net loss (gain) on financial instruments

5,938

(1,309)

8,192

(553)

Foreign exchange loss (gain)

17

(521)

410

(700)

Financing costs

20,975

15,082

77,787

52,861

Impairment of property, plant and equipment

266

Other gains

(1,192)

(3,272)

(232)

Amortization

20,616

15,595

78,280

55,496






EBITDA

39,424

31,376

146,639

101,836

Acquisition costs related to the acquisition of BEV

5,340

5,340

EBITDA - ADJUSTED

44,764

31,376

151,979

101,836






 

Net earnings (loss) attributable to shareholders of Boralex


IFRS


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss) attributable to shareholders of Boralex

(6,265)

529

(11,767)

(3,838)

Net loss on undesignated financial instruments, net of taxes

5,067

5,067

Acquisition and other costs related to the acquisition of BEV, net of taxes

4,315

4,315

NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX - ADJUSTED

3,117

529

(2,385)

(3,838)







Proportionate Consolidation


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net earnings (loss) attributable to shareholders of Boralex

(6,295)

468

(11,930)

(4,192)

Net loss on undesignated financial instruments, net of taxes

5,067

5,067

Acquisition and other costs related to the acquisition of BEV, net of taxes

4,315

4,315

NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX - ADJUSTED

3,087

468

(2,548)

(4,192)






 

Cash flows from operations
Cash flows from operations are equal to net cash flows related to operating activities before the change in non-cash items related to operating activities. Management uses this measure to assess cash flows generated by the Corporation's operations and its capacity to finance its expansion through those funds. In light of the seasonal nature of the Corporation's operations and development activities, changes in non-cash items can vary considerably. In addition, development activities result in significant changes in Trade and other payables during the construction period, as well as an initial injection of working capital at project start-up. Accordingly, the Corporation considers it more representative not to integrate changes in non-cash items in this performance measure.

Investors should not consider cash flows from operations as an alternative measure to cash flows related to operating activities, which is an IFRS measure.

Cash flows from operations are reconciled to the most comparable IFRS measure, namely, net cash flows related to operating activities, in the following tables:

 



IFRS


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net cash flows related to operating activities

3,204

2,712

51,661

59,266

Change in non-cash items related to operating activities

(10,779)

(12,610)

(2,020)

8,350






CASH FLOWS FROM OPERATIONS

13,983

15,322

53,681

50,916

Acquisition costs related to the acquisition of BEV

5,340

5,340

CASH FLOWS FROM OPERATIONS - ADJUSTED

19,323

15,322

59,021

50,916







Proportionate Consolidation


Three-month periods ended

December 31

Years ended

December 31

(in thousands of Canadian dollars) (unaudited)

2014

2013

2014

2013

Net cash flows related to operating activities

9,454

17,130

102,265

59,878

Change in non-cash items related to operating activities

(12,554)

1,044

23,912

8,698






CASH FLOWS FROM OPERATIONS

22,008

16,086

78,353

51,180

Acquisition costs related to the acquisition of BEV

5,340

5,340

CASH FLOWS FROM OPERATIONS - ADJUSTED

27,348

16,086

83,693

51,180






 

IV - Reconciliation between IFRS and Proportionate Consolidation

 


Consolidated Statements of Financial Position




As at
December 31,


2014

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

ASSETS




Cash and cash equivalent

75,394

11,451

86,845

Restricted cash

12,459

7,355

19,814

Trade and other receivables

59,154

12,184

71,338

Inventories

5,620

11

5,631

Other current financial assets

1,213

1,213

Prepaid expenses

5,358

5,358

CURRENT ASSETS

159,198

31,001

190,199





Property, plant and equipment

1,215,411

428,902

1,644,313

Other intangible assets

254,007

254,007

Goodwill

134,044

134,044

Interests in the Joint Ventures

91,483

(91,483)

Deferred income tax asset

13,141

13,141

Other non-current financial assets

3,230

3,230

Other non-current assets

47,445

2,371

49,816

NON-CURRENT ASSETS

1,758,761

339,790

2,098,551

TOTAL ASSETS

1,917,959

370,791

2,288,750

LIABILITIES




Trade and other payables

57,616

7,082

64,698

Current portion of debt

172,044

19,718

191,762

Current income tax liability

1,601

1,601

Other current financial liabilities

34,116

34,116

CURRENT LIABILITIES

265,377

26,800

292,177





Non-current debt

989,087

296,171

1,285,258

Convertible debentures

232,977

232,977

Deferred income tax liability

30,780

30,780

Decommissioning liability

10,773

1,163

11,936

Other non-current financial liabilities

33,622

16,752

50,374

Other non-current liabilities

19,024

30,422

49,446

NON-CURRENT LIABILITIES

1,316,263

344,508

1,660,771

TOTAL LIABILITIES

1,581,640

371,308

1,952,948

EQUITY




Equity attributable to shareholders

303,191

(517)

302,674

Non-controlling shareholders

33,128

33,128

TOTAL EQUITY

336,319

(517)

335,802

TOTAL LIABILITIES AND EQUITY

1,917,959

370,791

2,288,750

 


Consolidated Statements of Financial Position




As at
December 31,


2013

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

ASSETS




Cash and cash equivalent

124,942

2,599

127,541

Restricted cash

19,366

40,760

60,126

Trade and other receivables

41,625

31,133

72,758

Inventories

4,502

4,502

Prepaid expenses

2,945

2,945

CURRENT ASSETS

193,380

74,492

267,872





Property, plant and equipment

799,213

380,440

1,179,653

Other intangible assets

257,058

257,058

Goodwill

49,890

49,890

Interests in the Joint Ventures

90,880

(90,880)

Other non-current financial assets

289

973

1,262

Other non-current assets

32,017

3,688

35,705

NON-CURRENT ASSETS

1,229,347

294,221

1,523,568

TOTAL ASSETS

1,422,727

368,713

1,791,440

LIABILITIES




Trade and other payables

57,992

23,615

81,607

Current portion of debt

84,034

38,475

122,509

Current income tax liability

1,516

1,516

Other current financial liabilities

15,243

15,243

CURRENT LIABILITIES

158,785

62,090

220,875





Non-current debt

578,914

276,570

855,484

Convertible debentures

229,578

229,578

Deferred income tax liability

37,493

37,493

Decommissioning liability

7,198

962

8,160

Other non-current financial liabilities

19,704

19,704

Other non-current liabilities

4,921

29,445

34,366

NON-CURRENT LIABILITIES

877,808

306,977

1,184,785

TOTAL LIABILITIES

1,036,593

369,067

1,405,660

EQUITY




Equity attributable to shareholders

356,448

(354)

356,094

Non-controlling shareholders

29,686

29,686

TOTAL EQUITY

386,134

(354)

385,780

TOTAL LIABILITIES AND EQUITY

1,422,727

368,713

1,791,440

 


Consolidated Statements of Earnings (Loss)




Three-month period ended December 31


2014

(in thousands of Canadian dollars, except per share amounts) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

REVENUES




Revenues from energy sales

53,673

13,635

67,308

Other income

545

(152)

393


54,218

13,483

67,701





COSTS AND OTHER EXPENSES




Operating

17,045

1,526

18,571

Administrative

3,195

18

3,213

Development

6,465

6,465

Amortization

15,832

4,784

20,616

Other gains

(846)

(346)

(1,192)


41,691

5,982

47,673





OPERATING INCOME

12,527

7,501

20,028





Financing costs

15,926

5,049

20,975

Foreign exchange loss (gain)

15

2

17

Net loss (gain) on financial instruments

6,031

(93)

5,938

Share in earnings (losses) of the Joint Ventures

2,570

(2,570)

Other

25

3

28





EARNINGS (LOSS) BEFORE INCOME TAXES

(6,900)

(30)

(6,930)





Income tax expense (recovery)

(523)

(523)





NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

(6,377)

(30)

(6,407)





Net earnings from discontinued operations

716

716

NET EARNINGS (LOSS)

(5,661)

(30)

(5,691)









NET EARNINGS (LOSS) ATTRIBUTABLE TO:





Shareholders of Boralex

(6,265)

(30)

(6,295)


Non-controlling shareholders

604

604

NET EARNINGS (LOSS)

(5,661)

(30)

(5,691)





NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

(6,981)

(30)

(7,011)


Discontinued operations

716

716


(6,265)

(30)

(6,295)





NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

($0.18)

($0.18)


Discontinued operations

$0.02

$0.02


($0.16)

($0.16)

 

Consolidated Statements of Earnings (Loss)




Three-month period ended December 31


2013

(in thousands of Canadian dollars, except per share amounts) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

REVENUES




Revenues from energy sales

49,496

2,371

51,867

Other income

331

11

342


49,827

2,382

52,209





COSTS AND OTHER EXPENSES




Operating

15,952

342

16,294

Administrative

3,263

32

3,295

Development

1,181

1,181

Amortization

13,987

1,608

15,595


34,383

1,982

36,365





OPERATING INCOME

15,444

400

15,844





Financing costs

13,061

2,021

15,082

Foreign exchange loss (gain)

(530)

9

(521)

Net loss (gain) on financial instruments

(69)

(1,240)

(1,309)

Share in earnings (losses) of the Joint Ventures

(329)

329

Other

63

63





EARNINGS (LOSS) BEFORE INCOME TAXES

2,590

(61)

2,529





Income tax expense (recovery)

1,624

1,624





NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

966

(61)

905





Net earnings from discontinued operations

74

74

NET EARNINGS (LOSS)

1,040

(61)

979









NET EARNINGS (LOSS) ATTRIBUTABLE TO:





Shareholders of Boralex

529

(61)

468


Non-controlling shareholders

511

511

NET EARNINGS (LOSS)

1,040

(61)

979





NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

455

(61)

394


Discontinued operations

74

74


529

(61)

468





NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

$0.01

$0.01


Discontinued operations


$0.01

$0.01

 

Consolidated Statements of Earnings (Loss)




Year ended December 31


2014

(in thousands of Canadian dollars, except per share amounts) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

REVENUES




Revenues from energy sales

193,401

46,105

239,506

Other income

1,827

(604)

1,223


195,228

45,501

240,729





COSTS AND OTHER EXPENSES




Operating

64,296

5,866

70,162

Administrative

13,479

102

13,581

Development

10,319

8

10,327

Amortization

60,410

17,870

78,280

Other gains

(1,962)

(1,310)

(3,272)


146,542

22,536

169,078





OPERATING INCOME

48,686

22,965

71,651





Financing costs

58,097

19,690

77,787

Foreign exchange loss (gain)

406

4

410

Net loss (gain) on financial instruments

8,187

5

8,192

Share in earnings (losses) of the Joint Ventures

3,426

(3,426)

Other

17

3

20





EARNINGS (LOSS) BEFORE INCOME TAXES

(14,595)

(163)

(14,758)





Income tax expense (recovery)

(854)

(854)





NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

(13,741)

(163)

(13,904)





Net earnings from discontinued operations

2,652

2,652

NET EARNINGS (LOSS)

(11,089)

(163)

(11,252)









NET EARNINGS (LOSS) ATTRIBUTABLE TO:





Shareholders of Boralex

(11,767)

(163)

(11,930)


Non-controlling shareholders

678

678

NET EARNINGS (LOSS)

(11,089)

(163)

(11,252)





NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

(14,419)

(163)

(14,582)


Discontinued operations

2,652

2,652


(11,767)

(163)

(11,930)





NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

($0.38)

($0.38)


Discontinued operations

$0.07

$0.07


($0.31)

($0.31)

 


Consolidated Statements of Earnings (Loss)


Year ended December 31


2013

(in thousands of Canadian dollars, except per share amounts) (unaudited)

IFRS

Ajustements Join

Ventures

Proportionate

Consolidation

REVENUES




Revenues from energy sales

169,023

2,372

171,395

Other income

3,009

(283)

2,726


172,032

2,089

174,121





COSTS AND OTHER EXPENSES




Operating

54,357

342

54,699

Administrative

13,214

167

13,381

Development

4,145

(3)

4,142

Amortization

53,888

1,608

55,496

Other gains

(232)

(232)

Impairment of property, plant and equipment

266

266


125,638

2,114

127,752





OPERATING INCOME

46,394

(25)

46,369





Financing costs

50,693

2,168

52,861

Foreign exchange loss (gain)

(788)

88

(700)

Net loss (gain) on financial instruments

(742)

189

(553)

Share in earnings (losses) of the Joint Ventures

(2,116)

2,116

Other

63

63





EARNINGS (LOSS) BEFORE INCOME TAXES

(4,948)

(354)

(5,302)





Income tax expense (recovery)

537

537





NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

(5,485)

(354)

(5,839)





Net earnings from discontinued operations

1,774

1,774

NET EARNINGS (LOSS)

(3,711)

(354)

(4,065)









NET EARNINGS (LOSS) ATTRIBUTABLE TO:





Shareholders of Boralex

(3,838)

(354)

(4,192)


Non-controlling shareholders

127

127

NET EARNINGS (LOSS)

(3,711)

(354)

(4,065)





NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

(5,612)

(354)

(5,966)


Discontinued operations

1,774

1,774


(3,838)

(354)

(4,192)





NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX





Continuing operations

($0.15)

($0.01)

($0.16)


Discontinued operations

$0.05

$0.05


($0.10)

($0.01)

($0.11)

 


Consolidated Statements of Cash Flows




Three-month period ended December 31


2014

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

Net earnings (loss)

(5,661)

(30)

(5,691)

Less: Net earnings from discontinued operations

716

716

Net earnings (loss) from continuing operations

(6,377)

(30)

(6,407)

Financing costs

15,926

5,049

20,975

Interest paid

(14,632)

(3,920)

(18,552)

Income tax expense (recovery)

(523)

(523)

Income tax paid

(64)

(64)

Non-cash items in earnings (loss):





Net loss (gain) on financial instruments

6,031

(93)

5,938


Share in results of the Joint Ventures

(2,570)

2,570


Amortization

15,832

4,784

20,616


Other

360

(335)

25


13,983

8,025

22,008

Change in non-cash items related to operating activities

(10,779)

(1,775)

(12,554)

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

3,204

6,250

9,454





Business acquisitions, net of cash acquired

(188,948)

(188,948)

Additions to property, plant and equipment

(47,620)

(28,526)

(76,146)

Change in restricted cash

(5,146)

20,136

14,990

Increase in interest in Joint Ventures

(7,181)

7,181

Change in reserve funds

(6,252)

(6,252)

Development projects

(1,279)

(1,279)

Proceeds from the disposal of assets held for sale

21,983

21,983

Other

(60)

(60)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(234,503)

(1,209)

(235,712)





Net increase in non-current debt

451,881

5,336

457,217

Repayment of debt assumed on business acquisition

(233,314)

(233,314)

Repayments on non-current debt

(4,761)

(4,453)

(9,214)

Contribution of non-controlling shareholders

539

539

Distribution to non-controlling shareholders

(2,050)

(2,050)

Dividends paid to shareholders of Boralex

(4,993)

(4,993)

Options exercised

151

151

Other

(1)

(1)

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

207,452

883

208,335

Cash from discontinued operations

843

843

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

301

301

NET CHANGE IN CASH AND CASH EQUIVALENT

(22,703)

5,924

(16,779)





CASH AND CASH EQUIVALENT - BEGINNING OF PERIOD

98,097

5,527

103,624

CASH AND CASH EQUIVALENT - END OF PERIOD

75,394

11,451

86,845

 


Consolidated Statements of Cash Flows




Three-month period ended December 31


2013

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

Net earnings (loss)

1,040

(61)

979

Less: Net earnings from discontinued operations

74

74

Net earnings (loss) from continuing operations

966

(61)

905

Financing costs

13,061

2,021

15,082

Interest paid

(14,280)

(1,235)

(15,515)

Income tax expense (recovery)

1,624

1,624

Income tax paid

(647)

(647)

Non-cash items in earnings (loss):





Net loss (gain) on financial instruments

(69)

(1,240)

(1,309)


Share in results of the Joint Ventures

329

(329)


Amortization

13,987

1,608

15,595


Other

351

351


15,322

764

16,086

Change in non-cash items related to operating activities

(12,610)

13,654

1,044

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

2,712

14,418

17,130





Additions to property, plant and equipment

(28,395)

(54,547)

(82,942)

Change in restricted cash

(9,529)

(37,392)

(46,921)

Increase in interest in Joint Ventures

(2,781)

2,781

Change in reserve funds

23

23

Development projects

(2,177)

(2,177)

Other

(232)

(232)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(43,091)

(89,158)

(132,249)





Net increase in non-current debt

29,439

76,519

105,958

Repayments on non-current debt

(4,097)

(4,097)

Contribution of non-controlling shareholders

1,856

1,856

Options exercised

66

66

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

27,264

76,519

103,783

Cash from discontinued operations

84

84

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

1,906

1,906

NET CHANGE IN CASH AND CASH EQUIVALENT

(11,125)

1,779

(9,346)





CASH AND CASH EQUIVALENT - BEGINNING OF PERIOD

136,067

820

136,887

CASH AND CASH EQUIVALENT - END OF PERIOD

124,942

2,599

127,541

 

Consolidated Statements of Cash Flows




Year ended December 31


2014

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

Net earnings (loss)

(11,089)

(163)

(11,252)

Less: Net earnings from discontinued operations

2,652

2,652

Net earnings (loss) from continuing operations

(13,741)

(163)

(13,904)

Financing costs

58,097

19,690

77,787

Interest paid

(53,298)

(14,857)

(68,155)

Income tax expense (recovery)

(854)

(854)

Income tax paid

(2,940)

(2,940)

Non-cash items in earnings (loss):





Net loss (gain) on financial instruments

8,187

5

8,192


Share in results of the Joint Ventures

(3,426)

3,426


Amortization

60,410

17,870

78,280


Other

1,246

(1,299)

(53)


53,681

24,672

78,353

Change in non-cash items related to operating activities

(2,020)

25,932

23,912

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

51,661

50,604

102,265





Business acquisitions, net of cash acquired

(196,879)

(196,879)

Additions to property, plant and equipment

(167,686)

(83,876)

(251,562)

Change in restricted cash

7,277

33,405

40,682

Increase in interest in Joint Ventures

(13,253)

13,253

Increase in non-current assets

(1,350)

(2,656)

(4,006)

Change in reserve funds

(6,825)

(6,825)

Development projects

(6,881)

(6,881)

Proceeds from the disposal of assets held for sale

21,983

21,983

Other

(491)

(491)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(364,105)

(39,874)

(403,979)





Net increase in non-current debt

589,006

40,352

629,358

Repayment of debt assumed on business acquisition

(233,314)

(233,314)

Repayments on non-current debt

(84,582)

(42,230)

(126,812)

Contribution of non-controlling shareholders

5,235

5,235

Distribution to non-controlling shareholders

(2,050)

(2,050)

Dividends paid to shareholders of Boralex

(19,896)

(19,896)

Options exercised

4,860

4,860

Other

(41)

(41)

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

259,218

(1,878)

257,340

Cash from discontinued operations

3,122

3,122

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

556

556

NET CHANGE IN CASH AND CASH EQUIVALENT

(49,548)

8,852

(40,696)





CASH AND CASH EQUIVALENT - BEGINNING OF YEAR

124,942

2,599

127,541

CASH AND CASH EQUIVALENT - END OF YEAR

75,394

11,451

86,845

 


Consolidated Statements of Cash Flows




Year ended December 31


2013

(in thousands of Canadian dollars) (unaudited)

IFRS

Ajustements Joint

Ventures

Proportionate

Consolidation

Net earnings (loss)

(3,711)

(354)

(4,065)

Less: Net earnings from discontinued operations

1,774

1,774

Net earnings (loss) from continuing operations

(5,485)

(354)

(5,839)

Financing costs

50,693

2,168

52,861

Interest paid

(48,905)

(1,231)

(50,136)

Income tax expense (recovery)

537

537

Income tax paid

(3,372)

(3,372)

Non-cash items in earnings (loss):





Net loss (gain) on financial instruments

(742)

189

(553)


Share in results of the Joint Ventures

2,116

(2,116)


Amortization

53,888

1,608

55,496


Impairment of property, plant and equipment

266

266


Other

1,920

1,920


50,916

264

51,180

Change in non-cash items related to operating activities

8,350

348

8,698

NET CASH FLOWS RELATED TO OPERATING ACTIVITIES

59,266

612

59,878





Additions to property, plant and equipment

(107,479)

(215,936)

(323,415)

Change in restricted cash

(18,890)

(34,173)

(53,063)

Increase in interest in Joint Ventures

(8,318)

8,318

Change in reserve funds

(13,956)

(13,956)

Development projects

(9,666)

(9,666)

Other

(74)

(74)

NET CASH FLOWS RELATED TO INVESTING ACTIVITIES

(158,383)

(241,791)

(400,174)





Net increase in non-current debt

209,739

243,778

453,517

Repayments on non-current debt

(101,471)

(101,471)

Contribution of non-controlling shareholders

2,593

2,593

Dividends paid to shareholders of Boralex

Options exercised

115

115

Other

(110)

(110)

NET CASH FLOWS RELATED TO FINANCING ACTIVITIES

110,866

243,778

354,644

Cash from discontinued operations

2,054

2,054

TRANSLATION ADJUSTEMENT ON CASH AND CASH EQUIVALENT

4,001

4,001

NET CHANGE IN CASH AND CASH EQUIVALENT

17,804

2,599

20,403





CASH AND CASH EQUIVALENT - BEGINNING OF YEAR

107,138

107,138

CASH AND CASH EQUIVALENT - END OF YEAR

124,942

2,599

127,541

 

Information by Operating Segment




Three-month period ended December 31


2014

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Wind power stations

245,601

125,141

370,742

Hydroelectric power stations

154,752

154,752

Thermal power stations

34,092

34,092

Solar power station

1,080

1,080


435,525

125,141

560,666

REVENUES FROM ENERGY SALES




Wind power stations

31,278

13,635

44,913

Hydroelectric power stations

14,312

14,312

Thermal power stations

7,569

7,569

Solar power station

514

514


53,673

13,635

67,308

EBITDA




Wind power stations

28,123

8,723

36,846

Hydroelectric power stations

9,730

9,730

Thermal power stations

1,188

1,188

Solar power station

391

391


39,432

8,723

48,155

Corporate and eliminations

(9,374)

643

(8,731)


30,058

9,366

39,424




Three-month period ended December 31


2013

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Wind power stations

227,195

22,081

249,276

Hydroelectric power stations

142,912

142,912

Thermal power stations

31,448

31,448

Solar power station

980

980


402,535

22,081

424,616

REVENUES FROM ENERGY SALES




Wind power stations

29,305

2,371

31,676

Hydroelectric power stations

12,746

12,746

Thermal power stations

6,976

6,976

Solar power station

469

469


49,496

2,371

51,867

EBITDA




Wind power stations

24,279

1,857

26,136

Hydroelectric power stations

9,002

9,002

Thermal power stations

26

26

Solar power station

438

438


33,745

1,857

35,602

Corporate and eliminations

(4,706)

480

(4,226)


29,039

2,337

31,376

 


Information by Operating Segment




Year ended December 31


2014

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Wind power stations

785,997

425,632

1,211,629

Hydroelectric power stations

641,979

641,979

Thermal power stations

169,637

169,637

Solar power station

6,259

6,259


1,603,872

425,632

2,029,504

REVENUES FROM ENERGY SALES




Wind power stations

102,063

46,105

148,168

Hydroelectric power stations

58,166

58,166

Thermal power stations

30,090

30,090

Solar power station

3,082

3,082


193,401

46,105

239,506

EBITDA




Wind power stations

86,511

33,585

120,096

Hydroelectric power stations

42,715

42,715

Thermal power stations

5,247

5,247

Solar power station

2,634

2,634


137,107

33,585

170,692

Corporate and eliminations

(26,564)

2,511

(24,053)


110,543

36,096

146,639




Year ended December 31


2013

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Wind power stations

682,136

22,081

704,217

Hydroelectric power stations

621,094

621,094

Thermal power stations

143,369

143,369

Solar power station

5,945

5,945


1,452,544

22,081

1,474,625

REVENUES FROM ENERGY SALES




Wind power stations

85,109

2,372

87,481

Hydroelectric power stations

53,756

53,756

Thermal power stations

27,446

27,446

Solar power station

2,712

2,712


169,023

2,372

171,395

EBITDA




Wind power stations

66,594

3,363

69,957

Hydroelectric power stations

40,413

40,413

Thermal power stations

3,010

3,010

Solar power station

2,379

2,379


112,396

3,363

115,759

Corporate and eliminations

(14,259)

336

(13,923)


98,137

3,699

101,836

 



Information by Geographic Segment




Three-month period ended December 31


2014

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Canada

167,325

125,141

292,466

France

184,020

184,020

United States

84,180

84,180


435,525

125,141

560,666

REVENUES FROM ENERGY SALES




Canada

20,189

13,635

33,824

France

26,785

26,785

United States

6,699

6,699


53,673

13,635

67,308

EBITDA




Canada

8,947

9,366

18,313

France

16,352

16,352

United States

4,759

4,759


30,058

9,366

39,424




Three-month period ended December 31


2013

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Canada

147,212

22,081

169,293

France

168,452

168,452

United States

86,871

86,871


402,535

22,081

424,616

REVENUES FROM ENERGY SALES




Canada

17,317

2,371

19,688

France

24,884

24,884

United States

7,295

7,295


49,496

2,371

51,867

EBITDA




Canada

9,130

2,337

11,467

France

14,760

14,760

United States

5,149

5,149


29,039

2,337

31,376

 

Information by Geographic Segment




Year ended December 31


2014

(in thousands of dollars, except MWh)

IFRS

Adjustments Joint

Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Canada

636,929

425,632

1,062,561

France

586,573

586,573

United States

380,370

380,370


1,603,872

425,632

2,029,504

REVENUES FROM ENERGY SALES




Canada

70,768

46,105

116,873

France

90,672

90,672

United States

31,961

31,961


193,401

46,105

239,506

EBITDA




Canada

33,741

36,096

69,837

France

52,962

52,962

United States

23,840

23,840


110,543

36,096

146,639




Year ended December 31


2013

(in thousands of dollars, except MWh)

IFRS

Adjustments

Joint Ventures

Proportionate

Consolidation





POWER PRODUCTION (MWh)




Canada

571,062

22,081

593,143

France

493,540

493,540

United States

387,942

387,942


1,452,544

22,081

1,474,625

REVENUES FROM ENERGY SALES




Canada

63,568

2,372

65,940

France

73,854

73,854

United States

31,601

31,601


169,023

2,372

171,395

EBITDA




Canada

33,554

3,699

37,253

France

40,719

40,719

United States

23,864

23,864


98,137

3,699

101,836

 

SOURCE Boralex Inc.

For further information: Media: Patricia Lemaire, Director, Public Affairs and Communications, Boralex Inc., 514-985-1353, patricia.lemaire@boralex.com; Investors: Marc Jasmin, Director, Investor Relations, Boralex Inc., 514-284-9868, marc.jasmin@boralex.com


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