Financial Results for Second Quarter 2010

MONTREAL, Aug. 6 /CNW Telbec/ - Results for the second quarter of Boralex Inc. ("Boralex" or the "Corporation"), although impaired by the macro-economic environment, demonstrate the steady growth of profitability from the wind energy sector.

"The second quarter disapointing results do not affect in any way the growth prospects of Boralex. We continue to invest strongly in wind development of which 100 MW will be commissioned by December. These new assets will have a positive effect on our results over the coming years" says Mr. Patrick Lemaire, President and Chief Executive Officer. With respect to the proposed acquisition of the Boralex Power Income Fund, Mr. Lemaire noted that "this transaction would bring greater diversification to Boralex's assets, notably with additional hydroelectric assets, but also by, increasing the number of capacity under long-term contracts; this would provide greater stability and predictability to our results."

    
    (in millions of dollars, except per share data)
    -------------------------------------------------------------------------
                       Three-month periods ended     Six-month periods ended
                      -------------------------------------------------------
                           June 30,      June 30,      June 30,      June 30,
                              2010          2009          2010          2009

    As presented in
     the financial
     statements
    Revenues from
     energy sales             36.7          41.8          87.7          99.0
    EBITDA                     5.2          12.9          22.9          33.9
    Net earnings
     (net loss)               (5.8)          1.8          (4.4)          9.0
      per share (basic
       and diluted)         $(0.15)       $ 0.05        $(0.12)       $ 0.24
    Cash flows from
     operations                3.9          11.6          19.4          26.9

    Adjusted data(1)
    Adjusted EBITDA            7.5          12.9          28.8          33.2
    Adjusted net
     earnings
     (net loss)               (4.2)          1.8           1.3           8.5
      per share (basic
       and diluted)         $(0.11)       $ 0.05        $ 0.03        $ 0.23
    -------------------------------------------------------------------------
    (1) Non-GAAP performance measure, refer to the reconciliation table at
        the end of this press release.
    

In the second quarter 2010, revenues were $36.7 million, down 12.2% compared to the same period in 2009. The decrease stems mainly from the rise in the Canadian dollar versus the U.S. dollar and the euro. At a constant exchange rate, revenues for the second quarter would have been up 1.0% over the same period in 2009.

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $5.2 million for the second quarter, down $7.7 million versus the second quarter 2009. This decrease is partly due to non-recurring expenses incurred by Boralex in connection with the offer to acquire the Fund, and to currency fluctuations and the difficult environment in the wood-residue segment which has notably put pressure on energy prices. All of these unfavourable elements eroded the contribution of $3.2 million to EBITDA from the new wind farms commissioned earlier in the year. The Corporation thus ended the second quarter 2010 with a net loss of $5.8 million ($0.15 per share, basic and diluted) compared to net earnings of $1.8 million ($0.05 per share, basic and diluted) for the same period in 2009.

Second quarter 2010 results for the wind segment reflect the positive impact of Boralex's expansion strategy, with the segment reporting revenue of $9.2 million from the sale of energy, and EBITDA of $7.1 million, up 15.0% and 14.5% respectively versus the same period in 2009.

The hydroelectric segment, for the quarter ended June 30, 2010, recorded revenues from the sale of energy of $2.3 million and EBITDA of $1.2 million, compared to $2.8 million and $1.8 million for the second quarter 2009. The decrease is partly due to less favourable hydrology for the U.S. power stations, which generated 22% less power in the second quarter of 2010 versus the same period in 2009 and was down 13% compared to historical averages.

As predicted by management, the less favourable business context in the U.S. wood-residue segment related in particular to the termination of the tax credit program for the production of renewable energy and fewer benefits than previous years from forward power sales contracts, combined with the unfavourable impact of the rise in the Canadian dollar, had a negative impact on results. For the second quarter 2010, revenues from the sale of energy in the wood-residue segment amounted to $22.9 million, down 19.1% compared to the same quarter in 2009. EBITDA was $8.1 million in 2009 and $4.4 million in 2010. "We are confident that the tax credit program for the production of renewable energy will be extended by the U.S. Congress. This decision and the economic recovery in the United States should improve the contribution of the wood-residue sector to the results," said Patrick Lemaire.

About Boralex

Boralex is a major independent power producer whose core business is the development and operation of power stations that generate renewable energy. Employing over 300 people, the Corporation operates 28 power stations with a total installed capacity of 410 megawatts ("MW") in Canada, in the Northeastern United States and in France. In addition, the Corporation has, alone or with its European and Canadian partners, power projects under development that will add more than 300 MW of power, of which almost 100 MW will come online by the end of fiscal 2010. Boralex is distinguished by its diversified expertise and in-depth experience in three power generation segments - wind, hydroelectric and thermal. 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. Boralex shares are listed on the Toronto Stock Exchange under the ticker symbol BLX. More information is available at www.boralex.com or www.sedar.com.

Certain statements contained in this press release, including those regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the general impact of economic conditions, raw material price increases and availability, currency fluctuations, fluctuations in electricity selling prices, the Company's financing capacity, adverse changes in general market and industry conditions, as well as other factors listed in the Company's filings with different securities commissions.

The summarized financial statements included in this press release also contain certain financial measurements that are not recognized as Generally Accepted Accounting Principles of Canada (GAAP). To assess the operating performance of its assets and reporting segments, the Corporation uses earnings before interest, taxes, depreciation and amortization (EBITDA) and cash flows from operations as performance measurements. These measures are not defined under GAAP and do not have a standardized definition prescribed by GAAP. Therefore, they may not be comparable to similar measures presented by other companies. EBITDA corresponds to Operating income as 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.

The following table reconciles EBITDA and net earnings as reported in the financial statements with adjusted EBITDA and net earnings (net loss):

    
    -------------------------------------------------------------------------
                         EBITDA for the quarters   *Net earnings (net loss)
                                           ended      for the quarters ended
                     --------------------------------------------------------
    (in thousands of       June 30,      June 30,      June 30,      June 30,
     dollars)                 2010          2009          2010          2009
    -------------------------------------------------------------------------

    As reported in
     the financial
     statements              5,242        12,942        (5,798)        1,817
      Specific items:
        Professionnal
         fees incurred
         in connection
         with the offer
         to acquire the
         Fund                2,242             -         1,569             -
    -------------------------------------------------------------------------
    Adjusted data            7,484        12,942        (4,229)        1,817

    *Impact net of income taxes
    -------------------------------------------------------------------------


    Consolidated Balance Sheets

                                                         AS AT         AS AT
                                                       JUNE 30,  DECEMBER 31,
    (in thousands of dollars) (unaudited)                 2010          2009
    -------------------------------------------------------------------------

    ASSETS
    CURRENT ASSETS
    Cash and cash equivalents                           49,755        37,821
    Restricted cash                                     73,685             -
    Accounts receivable                                 34,939        39,632
    Future income taxes                                    544           422
    Inventories                                          7,222         8,726
    Prepaid expenses                                     2,812         2,537
    Fair value of derivative financial instruments       5,894             -
    -------------------------------------------------------------------------
                                                       174,851        89,138
    Investment                                          51,639        55,446
    Property, plant and equipment                      457,958       413,539
    Power sales contracts                               44,264        49,023
    Other assets                                        44,791        56,621
    -------------------------------------------------------------------------
                                                       773,503       663,767
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    CURRENT LIABILITIES
    Bank loans and advances                                  -        12,291
    Accounts payable and accrued liabilities            50,375        28,913
    Income taxes                                         1,304           283
    Current portion of long-term debt                   31,213        24,273
    -------------------------------------------------------------------------
                                                        82,892        65,760
    Long-term debt                                     319,709       206,116
    Future income taxes                                 32,835        37,185
    Fair value of derivative financial instruments      12,392         7,645
    -------------------------------------------------------------------------
                                                       447,828       316,706
    -------------------------------------------------------------------------

    EQUITY ATTRIBUTABLE TO SHAREHOLDERS
    Capital stock                                      222,694       222,694
    Contributed surplus                                  4,980         4,295
    Retained earnings                                  153,725       159,900
    Accumulated other comprehensive loss               (62,800)      (46,859)
    -------------------------------------------------------------------------
                                                       318,599       340,030
    Non-controlling interests                            7,076         7,031
    -------------------------------------------------------------------------
    Total equity                                       325,675       347,061
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                       773,503       663,767
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Earnings

    (in thousands of                FOR THE                     FOR THE
     dollars, except         THREE-MONTH PERIODS          SIX-MONTH PERIODS
     amounts per share          ENDED JUNE 30,              ENDED JUNE 30,
     and number of shares)
     (unaudited)              2010          2009          2010          2009
    -------------------------------------------------------------------------

    Revenues from energy
     sales                  36,728        41,756        87,732        98,954
    Renewable energy tax
     credits                     -         3,488             -         6,976
    Operating costs         24,966        29,201        53,462        68,854
    -------------------------------------------------------------------------
                            11,762        16,043        34,270        37,076
    Share in earnings of
     the Fund                  201           549        (1,260)        2,852
    Management revenues
     from the Fund           1,523         1,369         3,279         2,749
    Other income               155           153           454         1,658
    -------------------------------------------------------------------------
                            13,641        18,114        36,743        44,335
    -------------------------------------------------------------------------
    OTHER EXPENSES
    Management and
     operation of the Fund   1,314         1,208         2,819         2,337
    Administrative           7,085         3,964        11,050         8,103
    -------------------------------------------------------------------------
                             8,399         5,172        13,869        10,440
    -------------------------------------------------------------------------

    OPERATING INCOME         5,242        12,942        22,874        33,895

    Amortization             8,052         6,483        15,751        12,947
    Foreign exchange loss
     (gain)                    154             9         1,030           (35)
    Net loss (gain) on
     financial instruments     220          (290)         (339)         (404)
    Financing costs          3,123         3,448         8,883         6,867
    Gain on sale of
     subsidiary                  -             -          (774)            -
    -------------------------------------------------------------------------
                            11,549         9,650        24,551        19,375
    -------------------------------------------------------------------------

    EARNINGS (LOSS)
     BEFORE INCOME TAXES
     (RECOVERY)             (6,307)        3,292        (1,677)       14,520

    Income taxes
     (recovery)               (321)        1,479         2,680         5,435
    -------------------------------------------------------------------------
    Net earnings (loss)
     including non-
     controlling
     interests              (5,986)        1,813        (4,357)        9,085
    Non-controlling
     interests                 188             4           (93)          (56)
    -------------------------------------------------------------------------

    NET EARNINGS (LOSS)
     ATTRIBUTABLE TO
     SHAREHOLDERS           (5,798)        1,817        (4,450)        9,029
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings (loss)
     per Class A share
     (basic)                 (0.15)         0.05         (0.12)         0.24
    Net earnings (loss)
     per Class A share
     (diluted)               (0.15)         0.05         (0.12)         0.24
    Weighted average
     number of Class A
     shares
     outstanding
     (basic)            37,740,921    37,740,921    37,740,921    37,740,921
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Retained Earnings

                                                                FOR THE
                                                          SIX-MONTH PERIODS
                                                            ENDED JUNE 30,
    (in thousands of dollars) (unaudited)                 2010          2009
    -------------------------------------------------------------------------

    Balance - beginning of period                      159,900       135,461
    Net earnings (loss) for the period                  (4,450)        9,029
    Excess of purchase price paid for acquisition
     of minority interests                              (1,725)            -
    -------------------------------------------------------------------------

    Balance - end of period                            153,725       144,490
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Loss

                                    FOR THE                     FOR THE
                             THREE-MONTH PERIODS          SIX-MONTH PERIODS
    (in thousands of            ENDED JUNE 30,              ENDED JUNE 30,
     dollars) (unaudited)     2010          2009          2010          2009
    -------------------------------------------------------------------------

    Net earnings (loss)
     for the period
     including non-
     controlling
     interests              (5,986)        1,813        (4,357)        9,085
    -------------------------------------------------------------------------

    Other comprehensive
     income (loss)
      TRANSLATION
       ADJUSTMENTS
      Unrealized foreign
       exchange gain
       (loss) on
       translation of
       financial
       statements of
       self-sustaining
       foreign
       operations            2,928       (15,869)       (6,372)      (11,118)
      Reclassification to
       net earnings (loss)
       of a realized
       foreign exchange
       loss (gain) related
       to the reduction of
       net investment in
       self-sustaining
       foreign operations    1,038             -         1,460           (65)
      Share of cumulative
       translation
       adjustments of the
       Fund                    694        (1,576)          216        (1,037)
      Taxes                    154           417           160           290
      CASH FLOW HEDGES
      Change in fair value
       of financial
       instruments          (8,482)        2,474       (14,077)        9,200
      Hedging items
       realized and
       recognized in net
       earnings             (2,159)       (6,083)       (3,378)      (12,760)
      Hedging items
       realized and
       recognized in
       balance sheet           991        (1,164)        2,137        (2,261)
      Taxes                  3,136         1,279         3,913         1,237
    -------------------------------------------------------------------------
                            (1,700)      (20,522)      (15,941)      (16,514)
    -------------------------------------------------------------------------
    Comprehensive loss
     for the period
     including non-
     controlling
     interests              (7,686)      (18,709)      (20,298)       (7,429)
    -------------------------------------------------------------------------
    Less: Comprehensive
     income (loss) for
     the period
     attributable to
     non-controlling
     interests                 188             4           (93)          (56)
    -------------------------------------------------------------------------
    Comprehensive loss
     for the period
     attributable to
     shareholders           (7,498)      (18,705)      (20,391)       (7,485)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Cash Flows

                                    FOR THE                     FOR THE
                             THREE-MONTH PERIODS          SIX-MONTH PERIODS
                                ENDED JUNE 30,              ENDED JUNE 30,
    (in thousands of
     dollars) (unaudited)     2010          2009          2010          2009
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net earnings (loss)     (5,798)        1,817        (4,450)        9,029
    Distributions
     received from the
     Fund                    1,377         2,410         3,098         4,819
    Adjustments for
     non-cash items
      Net loss (gain)
       on financial
       instruments             220           114          (339)           (1)
      Share in earnings
       of the Fund            (201)         (549)        1,260        (2,852)
      Amortization           8,052         6,483        15,751        12,947
      Amortization of
       financing costs
       and monetization
       program expenses        213           735         3,131         1,507
      Renewable energy
       tax credits              81          (850)          988        (1,717)
      Gain on sale of
       subsidiary                -             -          (774)            -
      Future income
       taxes                  (603)          508          (552)        2,650
      Other                    545           909         1,307           518
    -------------------------------------------------------------------------
                             3,886        11,577        19,420        26,900
    Change in non-cash
     working capital
     items                  (5,696)       14,442         1,069        13,397
    -------------------------------------------------------------------------
                            (1,810)       26,019        20,489        40,297
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Additions to property,
     plant and equipment
      - projects under
        construction       (41,825)      (24,551)      (58,013)      (29,784)
      - power stations in
        operation           (1,748)       (3,434)       (6,268)       (4,963)
    Change in restricted
     cash                   20,602             -       (73,685)            -
    Business acquisitions        -        (4,769)            -        (4,769)
    Proceeds from sale of
     a subsidiary                -             -           878             -
    Change in restricted
     funds                      24        (1,520)          882        (1,541)
    Development projects      (350)         (151)         (395)       (6,036)
    Acquisition of
     minority interests     (1,751)         (968)       (1,751)         (968)
    Other                      549        (2,502)        1,504        (5,825)
    -------------------------------------------------------------------------
                           (24,499)      (37,895)     (136,848)      (53,886)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Increase (decrease)
     in bank loans and
     advances               (7,865)       10,636       (12,291)       14,326
    Increase in
     long-term debt         20,317             -       208,866             -
    Payments on
     long-term debt         (1,357)       (4,266)      (60,774)      (10,957)
    Financing costs              -          (219)            -          (219)
    -------------------------------------------------------------------------
                            11,095         6,151       135,801         3,150
    -------------------------------------------------------------------------
    TRANSLATION
     ADJUSTMENT ON CASH
     AND CASH EQUIVALENTS   (1,419)       (4,750)       (7,508)       (6,840)
    -------------------------------------------------------------------------
    NET CHANGE IN CASH
     AND CASH EQUIVALENTS  (16,633)      (10,475)       11,934       (17,279)
    CASH AND CASH
     EQUIVALENTS -
     BEGINNING OF PERIOD    66,388        62,391        37,821        69,195
    -------------------------------------------------------------------------
    CASH AND CASH
     EQUIVALENTS - END
     OF PERIOD              49,755        51,916        49,755        51,916
    -------------------------------------------------------------------------
    SUPPLEMENTAL
     INFORMATION
    CASH AND CASH
     EQUIVALENTS PAID FOR:
      Interest               5,666         2,024         8,603         4,140
      Income taxes           2,206             -         2,426           248
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

SEGMENTED INFORMATION

The Corporation's power stations are grouped into four distinct segments: wind power, hydroelectric power, wood-residue thermal power and natural gas thermal power, and are engaged mainly in power generation. The classification of these segments is based on the different cost structures relating to each of the four types of power stations. The main accounting policies that apply to the operating segments are the same as those described in note 2 in the Fund's 2009 Annual Report.

The Corporation analyzes the performance of its operating segments based on the 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. EBITDA corresponds to Operating income. Results for each segment are presented on the same basis as those of the Corporation.

The following table reconciles EBITDA with net earnings (loss):

    
                                    FOR THE                     FOR THE
                             THREE-MONTH PERIODS          SIX-MONTH PERIODS
                                ENDED JUNE 30,              ENDED JUNE 30,
    -------------------------------------------------------------------------
                              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Net earnings (loss)     (5,798)        1,817        (4,450)        9,029
    Non-controlling
     interests                (188)           (4)           93            56
    Income taxes              (321)        1,479         2,680         5,435
    Gain on sale of
     subsidiary                  -             -          (774)            -
    Financing costs          3,123         3,448         8,883         6,867
    Net gain on financial
     instruments               220          (290)         (339)         (404)
    Foreign exchange loss
     (gain)                    154             9         1,030           (35)
    Amortization             8,052         6,483        15,751        12,947
    -------------------------------------------------------------------------
    EBITDA                   5,242        12,942        22,874        33,895
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    INFORMATION BY SEGMENT

                                    FOR THE                     FOR THE
                             THREE-MONTH PERIODS          SIX-MONTH PERIODS
                                ENDED JUNE 30,              ENDED JUNE 30,
    -------------------------------------------------------------------------
                              2010          2009          2010          2009
    -------------------------------------------------------------------------
    Power generation (MWh)
    Wind farms              76,999        55,157       167,291       115,919
    Hydroelectric power
     stations               34,301        41,066        74,610        76,732
    Wood-residue thermal
     power stations        265,470       257,714       585,527       554,402
    Natural gas thermal
     power station              77            30        22,507        22,642
    -------------------------------------------------------------------------
                           376,847       353,967       849,935       769,695
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenues from energy
     sales
    Wind farms               9,230         8,018        20,643        17,101
    Hydroelectric power
     stations                2,323         2,842         5,377         5,601
    Wood-residue thermal
     power stations         22,896        28,338        53,111        66,520
    Natural gas thermal
     power station           2,279         2,558         8,601         9,732
    -------------------------------------------------------------------------
                            36,728        41,756        87,732        98,954
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA
    Wind farms               7,112         6,242        16,531        13,456
    Hydroelectric power
     stations                1,182         1,785         3,055         3,494
    Wood-residue thermal
     power stations          4,424         8,148        14,452        19,951
    Natural gas thermal
     power station            (106)         (145)        1,932         1,366
    Corporate and
     eliminations           (7,370)       (3,088)      (13,096)       (4,372)
    -------------------------------------------------------------------------
                             5,242        12,942        22,874        33,895
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment
    Wind farms              42,000        24,712        61,341        29,853
    Hydroelectric power
     stations                  199           719           415           719
    Wood-residue thermal
     power stations          1,073         2,292         2,057         3,750
    Natural gas thermal
     power station               6             6             9            28
    Corporate and
     eliminations              295           256           459           397
    -------------------------------------------------------------------------
                            43,573        27,985        64,281        34,747
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                         AS AT         AS AT
                                                       JUNE 30,  DECEMBER 31,
                                                          2010          2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total assets
    Wind farms                                         481,527       363,644
    Hydroelectric power stations                        36,602        34,622
    Wood-residue thermal power stations                134,855       138,014
    Natural gas thermal power station                   11,350        13,600
    Corporate and eliminations                         109,169       113,887
    -------------------------------------------------------------------------
                                                       773,503       663,767
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Property, plant and equipment
    Wind farms                                         336,752       288,225
    Hydroelectric power stations                        25,552        25,758
    Wood-residue thermal power stations                 83,976        84,660
    Natural gas thermal power station                    5,732         7,150
    Corporate and eliminations                           5,946         7,746
    -------------------------------------------------------------------------
                                                       457,958       413,539
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    INFORMATION BY GEOGRAPHIC SEGMENT

                                    FOR THE                     FOR THE
                             THREE-MONTH PERIODS          SIX-MONTH PERIODS
                                ENDED JUNE 30,              ENDED JUNE 30,
                              2010          2009          2010          2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Power generation (MWh)
    United States          292,164       291,776       643,106       619,427
    France                  51,454        55,187       136,771       138,561
    Canada                  33,229         7,004        70,058        11,707
    -------------------------------------------------------------------------
                           376,847       353,967       849,935       769,695
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenues from energy
     sales
    United States           24,433        30,373        56,570        70,977
    France                   8,152        10,576        22,585        26,833
    Canada                   4,143           807         8,577         1,144
    -------------------------------------------------------------------------
                            36,728        41,756        87,732        98,954
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA
    United States            4,902         9,181        15,953        22,417
    France                   3,332         4,949        10,400        12,756
    Canada                  (2,992)       (1,188)       (3,479)       (1,278)
    -------------------------------------------------------------------------
                             5,242        12,942        22,874        33,895
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment
    United States            1,265         2,264         2,436         3,641
    France                   4,538           387        20,090           621
    Canada                  37,770        25,334        41,755        30,485
    -------------------------------------------------------------------------
                            43,573        27,985        64,281        34,747
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                         AS AT         AS AT
                                                       JUNE 30,  DECEMBER 31,
                                                          2010          2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total assets
    United States                                      165,479       179,494
    France                                             253,625       254,142
    Canada                                             354,399       230,131
    -------------------------------------------------------------------------
                                                       773,503       663,767
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Property, plant and equipment
    United States                                       89,091        89,889
    France                                             197,883       190,797
    Canada                                             170,984       132,853
    -------------------------------------------------------------------------
                                                       457,958       413,539
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

SUBSEQUENT EVENTS

    
    Transaction with the Fund
    -------------------------
    

On May 3, 2010, Boralex and the Fund jointly announced that they have entered into a definitive support agreement, pursuant to which Boralex, through one of its wholly owned subsidiaries, has offered to acquire by way of a take-over bid (the "Offer") all of the issued and outstanding trust units in the capital of the Fund (the "Units") in exchange for $5 cash equivalent value per Unit in the form of 6.25% Convertible Unsecured Subordinated Debentures of Boralex (the "Debentures"). Boralex has agreed to offer holders of Units ("Unitholders") a $100 principal amount of Debentures for each 20 units held.

The special committee of independent trustees of Boralex Power Trust (the "Special Committee") and the Board of Trustees have unanimously determined that the Offer is fair to Unitholders other than Boralex and is in the best interest of the Fund and its Unitholders.

A take-over bid circular containing the full details of the Offer and other related documents was mailed to Unitholders on May 19, 2010.

The Offer is conditional on the tendering in response to the Offer of at least 66 2/3% of the outstanding Units, and a majority of the Units not controlled by Boralex, the receipt of any necessary regulatory approvals and compliance with or waiver of other customary conditions.

Under the terms of the support agreement, the Fund has agreed that it will not solicit or initiate any competing third-party proposals. In the event that the transaction is not completed in certain circumstances, the Fund has agreed to pay Boralex a termination fee of approximately $6,800,000.

On July 12, 2010, Boralex improved its Offer in light of changes in market conditions, by increasing the interest rate of the Debentures to 6.75% per year (instead of 6.25% per year) and offering a conversion price of $12.50 (instead of $17.00) per share of Boralex. The Offer had been extended until July 30, 2010 at 7:00 p.m. This improved Offer has been once again extended until August 13, 2010 at 7:00 p.m.

    
    Capital subscription in Europe
    ------------------------------
    

On July 6, 2010, the Corporation completed a (euro)4,265,000 capital subscription by its European partner. The percentage of European operations held by this partner increased by 3.71% to 20.01%. Under the initial agreement entered into in December 2009, the partner had the option of subscribing to a capital increase of up to (euro)33,000,000, of which (euro)19,265,000 has been contributed to date.

SOURCE Boralex Inc.

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


Custom Packages

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

Start today.

CNW Membership

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

Learn about CNW services

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