Third Quarter Financial Results for Boralex Power Income Fund
The Fund reported
Revenue in the hydroelectric segment rose 9% to
Wood residue thermal power stations reported revenue of
The Fund has come to an agreement in principle with ABI to temporarily operate the Dolbeau power plant, from
The Kingsey Falls natural gas cogeneration plant reported revenues of
Finally, taking into account the net change in non-cash working capital balances, cash flows related to operating activities amounted to
About Boralex Power Income Fund
Boralex Power Income Fund (the "Fund") is an unincorporated open-ended trust that indirectly owns ten power generating stations located in the province of Québec and in the
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions on market and industry, increases in raw material costs, changes in the relative values of certain currencies, fluctuations in selling prices, and other factors listed in the Company's filings with different securities commissions.
The summarized financial statements included in this press release also contain certain financial measurements that are not recognized as Generally Accepted Accounting Principles of
Notice to Unitholders
These interim consolidated financial statements as at
The following financial information was extracted from the interim consolidated financial statements of Boralex Power Income Fund (the "Fund"). The complete interim financial statements were prepared in accordance with Canadian generally accepted accounting principles. They are available on the Fund's website (www.boralex.com/trust) and filed with SEDAR.
Consolidated Balance Sheets
As at As at
September 30, December 31,
(in thousands of dollars) (unaudited) 2009 2008
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Assets
Current assets
Cash and cash equivalents 16,773 18,846
Accounts receivable 18,150 17,610
Income taxes receivable 356 -
Inventories 2,720 2,953
Prepaid expenses 628 945
---------------------------
38,627 40,354
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Property, plant and equipment 347,567 376,316
Intangible assets 56,715 66,990
Other long-term assets 6,534 5,552
---------------------------
449,443 489,212
---------------------------
Liabilities and unitholders' equity
Current liabilities
Short-term revolving credit facility 500 -
Accounts payable and accrued liabilities 16,142 13,985
Income taxes payable - 400
Distributions payable to unitholders 3,446 3,446
Current portion of obligation under
capital lease - 20
---------------------------
20,088 17,851
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Future income tax liabilities 41,529 43,280
Fair value of derivative financial instruments - 233
Long-term debt 108,924 119,191
Long-term lease accruals 2,730 2,773
---------------------------
173,271 183,328
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Unitholders' equity
Capital contribution 422,174 422,174
Capital contribution - exchangeable
Class B units 112,867 112,867
Deficit (240,951) (220,137)
Accumulated other comprehensive loss (17,918) (9,020)
---------------------------
276,172 305,884
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449,443 489,212
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Consolidated Statements of Earnings
(in thousands of For the
dollars, except For the quarters nine-month periods
per unit amounts) ended September 30, ended September 30,
(unaudited) 2009 2008 2009 2008
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Revenues 19,879 23,541 77,132 83,368
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Expenses
Operating 9,339 12,666 35,359 35,218
Administrative 830 733 2,293 2,893
-----------------------------------------------------
10,169 13,399 37,652 38,111
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Operating income
before amortization 9,710 10,142 39,480 45,257
Amortization of
property, plant
and equipment 4,926 4,705 15,013 13,961
Amortization of
intangible assets 1,443 1,579 5,210 5,550
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Operating income 3,341 3,858 19,257 25,746
Financing costs, net 1,907 1,840 5,783 5,416
Foreign exchange
loss (gain) 1,945 (512) 1,809 (2,127)
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Earnings (loss)
before income taxes (511) 2,530 11,665 22,457
Income taxes
(recovery) 198 (278) 1,468 (838)
-----------------------------------------------------
Net earnings (loss)
for the period (709) 2,808 10,197 23,295
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Basic and diluted
net earnings
(loss) per trust
unit (in dollars) (0.01) 0.05 0.17 0.39
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Weighted average
number of trust
units outstanding 59,067,992 59,067,992 59,067,992 59,067,992
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Consolidated Statements of Deficit
For the
nine-month periods
ended September 30,
(in thousands of dollars) (unaudited) 2009 2008
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Deficit - beginning of period (220,137) (170,982)
Net earnings for the period 10,197 23,295
Distributions to unitholders (31,011) (32,979)
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Deficit - end of period (240,951) (180,666)
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Consolidated Statements of Comprehensive Income (Loss)
For the
(in thousands For the quarters nine-month periods
of dollars) ended September 30, ended September 30,
(unaudited) 2009 2008 2009 2008
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Net earnings (loss)
for the period (709) 2,808 10,197 23,295
Other comprehensive
income (loss):
Translation
adjustments
Unrealized foreign
exchange gains
(losses) on
translation of
financial
statements of
self-sustaining
foreign operations (6,753) 3,419 (11,428) 5,944
Reclassification of
accumulated
foreign exchange
losses on
translation of
financial
statements of
self-sustaining
foreign operations
following a
reduction in net
investment 2,096 67 2,194 81
Future income taxes (521) 234 (845) 409
Hedging of net
investment in
self-sustaining
foreign operations
Change in fair
value of
derivatives
designated as
hedges of net
investment in
self-sustaining
foreign operations 906 (151) 1,564 (234)
Hedging instruments
realized and
recognized in net
earnings (177) (568) (388) (2,474)
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(4,449) 3,001 (8,903) 3,726
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Comprehensive
income (loss) for
the period (5,158) 5,809 1,294 27,021
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Consolidated Statements of Cash Flows
For the
(in thousands of For the quarters nine-month periods
dollars) ended September 30, ended September 30,
(unaudited) 2009 2008 2009 2008
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Operating activities
Net earnings (loss)
for the period (709) 2,808 10,197 23,295
Items not affecting
cash:
Amortization of
property, plant
and equipment 4,926 4,705 15,013 13,961
Amortization of
intangible assets 1,443 1,579 5,210 5,550
Amortization of
deferred
financing costs 89 79 297 248
Long-term lease
accruals 103 100 329 296
Future income
taxes (211) 302 (1,481) (2,509)
Realized currency
translation
adjustments 2,096 67 2,194 81
Other 49 (1) 48 114
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7,786 9,639 31,807 41,036
Net change in
non-cash working
capital balances (233) (738) 1,304 2,936
-----------------------------------------------------
Cash flows related
to operating
activities 7,553 8,901 33,111 43,972
-----------------------------------------------------
Investing activities
Additions to
property, plant
and equipment (427) (983) (1,479) (2,205)
Acquisition of
other assets (248) (15) (274) (86)
Other - 23 - (2)
-----------------------------------------------------
Cash flows related
to investing
activities (675) (975) (1,753) (2,293)
-----------------------------------------------------
Financing activities
Net change in
short-term
revolving credit
facility (1,900) 1,200 500 500
Repayment of capital
lease obligation - (58) (20) (174)
Distributions paid
to unitholders (10,337) (10,337) (31,011) (33,964)
Proceeds from sale
of options on
foreign exchange
forward contracts - 112 - 449
-----------------------------------------------------
Cash flows related
to financing
activities (12,237) (9,083) (30,531) (33,189)
-----------------------------------------------------
Translation
adjustments on cash
and cash
equivalents (1,784) 708 (2,900) 1,108
-----------------------------------------------------
Net change in cash
and cash
equivalents during
the period (7,143) (449) (2,073) 9,598
Cash and cash
equivalents -
beginning of period 23,916 20,787 18,846 10,740
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Cash and cash
equivalents - end
of period 16,773 20,338 16,773 20,338
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Supplemental
information
Interest paid 2,432 2,347 6,324 5,863
Income taxes paid 2,139 144 3,791 1,216
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Segmented information
The Fund's power stations are grouped into three distinct segments-hydroelectric power, wood-residue thermal power and natural gas thermal power-and are engaged mainly in power generation. The classification of these segments is based on the different cost structures relating to each type of power station. The Fund allocates its revenues by geographical region based on the point of delivery of the power.
The Fund analyzes the performance of its operating segments based on earnings before interest, taxes, depreciation and amortization ("EBITDA"). EBITDA is not a measure of performance defined under Canadian GAAP; however, management uses this measure to assess the operating performance of its reportable segments. Results for each segment are presented on the same basis as those of the Fund. In the consolidated statement of earnings, EBITDA is represented by operating income before amortization.
The following table reconciles EBITDA with net earnings or net loss:
For the
For the quarters nine-month periods
ended September 30, ended September 30,
2009 2008 2009 2008
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Net earnings (loss) (709) 2,808 10,197 23,295
Income taxes (recovery) 198 (278) 1,468 (838)
Foreign exchange
loss (gain) 1,945 (512) 1,809 (2,127)
Financing costs, net 1,907 1,840 5,783 5,416
Amortization of
intangible assets 1,443 1,579 5,210 5,550
Amortization of
property, plant and
equipment 4,926 4,705 15,013 13,961
-----------------------------------------------------
EBITDA 9,710 10,142 39,480 45,257
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Information by operating segment
For the
For the quarters nine-month periods
ended September 30, ended September 30,
2009 2008 2009 2008
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PRODUCTION (in MWh)
Hydroelectric power
stations 122,079 118,071 406,397 401,654
Wood-residue thermal
power stations 53,700 46,636 175,928 209,834
Natural gas thermal
power station 47,570 45,489 154,561 151,333
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223,349 210,196 736,886 762,821
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REVENUES
Hydroelectric power
stations 10,619 9,698 38,233 34,314
Wood-residue thermal
power stations 2,928 6,402 18,545 25,454
Natural gas thermal
power station 6,332 7,441 20,354 23,600
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19,879 23,541 77,132 83,368
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EBITDA
Hydroelectric power
stations 8,942 7,962 32,915 29,170
Wood-residue thermal
power stations (319) (8) 2,540 8,425
Natural gas thermal
power station 2,777 3,750 8,933 12,532
Corporate and
eliminations (1,690) (1,562) (4,908) (4,870)
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9,710 10,142 39,480 45,257
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ADDITIONS TO
PROPERTY, PLANT
AND EQUIPMENT
Hydroelectric power
stations 400 52 1,308 321
Wood-residue thermal
power stations - 13 106 844
Natural gas thermal
power station 27 918 65 1,040
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427 983 1,479 2,205
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As at As at
September 30, December 31,
2009 2008
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ASSETS
Hydroelectric power stations 271,532 295,182
Wood-residue thermal power stations 144,853 149,868
Natural gas thermal power station 36,518 42,043
Corporate and eliminations (3,460) 2,119
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449,443 489,212
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For further information: Ms. Sophie Paquet, Communications Advisor, Boralex Inc., (514) 985-1353, [email protected]
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