Atlantic Power Corporation Releases Third Quarter 2012 Results and Announces $225 million in Tax Equity Commitments for Canadian
Atlantic Power Corporation Releases Third Quarter 2012 Results and Announces $225 million in Tax Equity Commitments for Canadian Hills Wind
BOSTON, Nov. 5, 2012 /CNW/ - Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today released its results for the three and nine month periods ended September 30, 2012, and announced $225 million in tax equity commitments were executed for its Canadian Hills Wind project.
All amounts are in U.S. dollars unless otherwise indicated. Cash Available for Distribution, Payout Ratio, and Project Adjusted EBITDA are not recognized measures under generally accepted accounting principles in the United States ("GAAP") and do not have standardized meanings prescribed by GAAP; therefore, these measures may not be comparable to similar measures presented by other companies. Please see "Regulation G Disclosures" attached to this news release for an explanation and GAAP reconciliation of "Cash Available for Distribution", "Payout Ratio" and "Project Adjusted EBITDA" as used in this news release.
-- Cash flows from operating activities for the three months ended September 30, 2012 increased by $13.1 million, or 61%, from the comparable period in 2011, primarily due to the increased cash flows from the 18 projects of Atlantic Power Limited Partnership (the "Partnership"), following Atlantic Power's acquisition of the Partnership one year ago -- Project Adjusted EBITDA for the three months ended September 30, 2012 increased by $43.3 million, or 128%, from the comparable period in 2011, primarily due to the increased Project Adjusted EBITDA from the 18 Partnership projects -- Canadian Hills Wind is progressing on schedule and within budget to achieve its Commercial Operation Date ("COD") in December and firm commitments were executed with four investors for $225 million of tax equity -- Piedmont Green Power remains within budget and on track to achieve its COD in December -- The Company completed the sale of its 50% ownership interest in the Badger Creek project and has placed its interests in three additional non-core assets in the market for sale: Gregory, Delta Person and Path 15 "We are pleased to report another solid quarter of operating results, as well as the commitment of $225 million from tax equity investors for our Canadian Hills Wind project, which is on budget and on schedule to achieve COD by the end of the year," said Barry Welch, President and CEO of Atlantic Power. "Turbine completions at Canadian Hills have advanced to the point that we expect power sales under one of the project's five power purchase agreements will commence this week. In addition, our Piedmont Green Power biomass project is in its testing phase and has synchronized with the grid. Piedmont is also expected to achieve COD by the end of the year and is within budget and on schedule." Operating Performance Cash flows from operating activities increased by $13.1 million, or 61% to $34.7 million for the quarter ended September 30, 2012, compared to $21.6 million for the same period in 2011. Cash flows from operating activities increased by $57.8 million, or 87%, to $124.1 million for the nine months ended September 30, 2012, compared to $66.3 million for the same period in 2011. These increases over the prior year periods are primarily due to contributions from the 18 Partnership projects. Project income increased by $35.8 million, or 164%, to $38.0 million for the quarter ended September 30, 2012, compared to $2.2 million for the same period in 2011. Project income decreased by $2.5 million, or 10%, to $23.7 million for the nine months ended September 30, 2012, compared to $26.2 million for the same period in 2011. Project income can fluctuate significantly due to impacts from the non-cash mark-to-market fair value of derivatives. Project Adjusted EBITDA, including earnings from equity investments, increased by $43.3 million, or 128%, to $77.2 million for the quarter ended September 30, 2012, compared to $33.9 million for the same period in 2011. Project Adjusted EBITDA, including earnings from equity investments, increased by $132.9 million, or 134%, to $231.8 million for the nine months ended September 30, 2012, compared to $98.9 million for the same period in 2011. These increases over the prior year periods are primarily due to contributions from the 18 Partnership projects. Project Adjusted EBITDA for the three and nine months ended September 30, 2012 does not include Project Adjusted EBITDA for Path 15, as the project is being held for sale. The results for Path 15 have been separated out of the Consolidated Statements of Operations as "Income from discontinued operations." Project Adjusted EBITDA for Path 15 for the three and nine months ended September 30, 2012 was $6.7 million and $17.3 million, respectively. Cash Available for Distribution and Payout Ratio For the three and nine months ended September 30, 2012, cash flows from operating activities increased by $13.1 million and $57.8 million, respectively, compared to the same periods in 2011. For the three and nine months ended September 30, 2012, Cash Available for Distribution increased by $1.3 million and $39.5 million, respectively, compared to the same periods in 2011. For the three months ended September 30, 2012, the Payout Ratio associated with the dividend was 120%, compared to 70% in the comparable prior year period. The Payout Ratio for the quarter was negatively impacted by the timing of the payment of $26 million in receivables from two offtakers at the Company's projects. Payment of these receivables did not occur until the first week of October, resulting in a reduction of working capital for the third quarter. For the nine months ended September 30, 2012, the Payout Ratio associated with the dividend was 98% compared to 93% in the comparable prior year period. The Payout Ratio for the nine months ended September 30, 2012 was positively impacted by the termination of a management services contract in connection with the sale of the Company's interest in Primary Energy Recycling Holdings, LLC ("PERH"), and reduction in the Company's combined foreign currency forward positions achieved following the acquisition of the Partnership. These positive factors were offset by increased interest payments and preferred share dividends associated with debt and preferred shares assumed as part of the acquisition of the Partnership and $130 million of convertible debentures issued by the Company in July 2012 for its Canadian Hills acquisition, and by timing of the payment of $26 million in receivables from two offtakers at the Company's projects. Payment of these receivables did not occur until the first week of October, resulting in a reduction of working capital for the nine months ended September 30, 2012. Due to the timing of working capital adjustments, and cash payments associated with interest on Atlantic Power's corporate level debt, the Company's Payout Ratio will fluctuate from quarter to quarter. For further information, attached to this news release, are the calculation of Cash Available for Distribution (in both US$ and Cdn$), Payout Ratio, a summary of Project Adjusted EBITDA by segment for the three and nine month periods ended September 30, 2012 and 2011 and a summary of Project Adjusted EBITDA for selected projects for the three and nine months ended September 30, 2012. Construction Updates: Canadian Hills Wind & Piedmont Green Power Construction of the Company's Canadian Hills project is progressing on schedule and within budget and is expected to achieve COD in December 2012. The Company anticipates that power sales under one of the project's five power purchase agreements will commence this week. Four investors have executed tax equity contribution agreements for $225 million of tax equity for the project, which is expected to be funded at COD. The Company is pursuing additional tax equity investors for the remaining $47 million needed to pay down the construction loan at COD and, if necessary, will fund the remaining portion at that time with cash on hand or proceeds from its existing credit facility. The Piedmont project is in its testing phase and has synchronized with the grid. It is expected to achieve COD by the end of the year and is within budget and on schedule. Rationalizing Non-core Assets Atlantic Power has continued to rationalize its non-core assets with the sale of its 50% interest in Badger Creek on September 4, 2012 for proceeds of approximately $3.7 million. Other non-core assets that are currently for sale are the Company's approximately 17% interest in Gregory and its 40% interest in Delta Person, which are being sold together with the interests of the other partners in these projects. In addition, the Company is conducting a sale process for its 100% interest in the 84 mile, 500-kilovolt transmission line, Path 15. The project is the Company's only transmission project and it makes a relatively small contribution to overall cash flow. Amendment to Senior Credit Facility On November 2, 2012, in connection with the continued evolution of the Company's strategy to focus on late-stage development and construction projects, and possible disposition of certain projects, the Company amended its senior credit facility in order to change certain financial and leverage ratio covenants and obtained certain waivers from its lenders. Please see the Company's Quarterly Report on Form 10Q for the period ended September 30, 2012 for additional information. Outlook Based on actual performance to date and projections for the remainder of the year, Atlantic Power expects to receive distributions from its projects in the revised range of $255 to $265 million for the full year 2012. The Company expects overall levels of operating cash flows in 2012 to be improved over 2011 levels due primarily to full year contributions from the Partnership assets and increased distributions from Selkirk following the final payment of its non-recourse, project-level debt, which occurred in June 2012. These increased operating cash flows in 2012, in addition to one-time realized gains from the termination of a portion of aggregate foreign currency forward contracts following the acquisition of the Partnership and the management termination fee from the sale of PERH, are expected to positively impact cash available for distribution in 2012 versus 2011. The Company is revising its 2012 Payout Ratio guidance from 90% to 97%, to 96% to 102%, based on a number of factors impacting Cash Available for Distribution, including the delayed distributions of operating cash flow from the Chambers project in connection with the favorable decision in the project's litigation, which is now anticipated in 2013, and increased management general and administrative expenses. The Company has previously provided guidance with respect to expected substantial decreases in cash flow from its Lake and Auburndale projects in Florida after their PPAs expire on July 31 and December 31 of 2013, respectively. The Company's Pasco project, a similar sized gas facility also in Florida, signed a tolling agreement in 2008, prior to the recession, which, after adjusting for one-time items, provides approximately $4 million per year in cash distributions to Atlantic. The Company anticipates that potential new PPAs at its Lake and Auburndale projects would not individually achieve a better result in the near-term than that of its tolling agreement with Pasco due to recessionary impacts in the Florida market. The anticipated decreases in cash flow are expected to be partially offset by cash flow of $24 to $29 million, in aggregate, from its Piedmont and Canadian Hills construction projects starting in 2013, and cash flow increases of $14 to $18 million from the Company's 50% interest in its Orlando project starting in 2014. The Company expects, based on its growth assumptions, that there will be additional contributions from acquisitions and dispositions, which are expected to further support the Company's continued ability to pay its dividend. Dividend Reinvestment Plan Atlantic Power announced the details of the Company's Dividend Reinvestment Plan ("DRIP") on August 8, 2012. The DRIP allows eligible holders of common shares to reinvest their cash dividends (if, as and when declared by the Company's board of directors and paid) to acquire additional common shares of Atlantic Power at a 3% discount to market price, as defined in the DRIP. All holders of common shares who are Canadian or U.S. residents are eligible to participate in the DRIP. Shareholders who wish to participate in the DRIP should contact their brokerage firm to enroll in the DRIP. A complete copy of the DRIP and enrollment information is available in the "Investors" section of the Company's website www.atlanticpower.com. Shareholders are urged to carefully read the complete plan before making any decisions regarding their participation in the DRIP. Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in new common shares pursuant to the DRIP. Eligible shareholders interested in participating in the DRIP should consult their own tax advisors concerning the tax implications and consequences of their participation in the DRIP in their particular circumstances. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. Investor Conference Call and Webcast A telephone conference call hosted by Atlantic Power's management team will be held on Tuesday, November 6, 2012 at 10:00 AM ET. The telephone numbers for the conference call are: U.S. Toll Free: 1-877-317-6789; Canada Toll Free: 1-866-605-3852; International Toll: +1 412-317-6789. The Conference Call will also be broadcast over Atlantic Power's website. Please call or log in 10 minutes prior to the call. The telephone numbers to listen to the conference call after it is completed (Instant Replay) are U.S. Toll Free: 1-877-344-7529; International Toll: +1-412-317-0088. Please enter conference call number 10019543. The conference call will also be archived on Atlantic Power's website. About Atlantic Power Atlantic Power is a leading publicly traded, power generation and infrastructure company with a well-diversified portfolio of assets in the United States and Canada. The Company's power generation projects sell electricity to utilities and other large commercial customers under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices. The net generating capacity of the Company's projects is approximately 2,117 MW, consisting of interests in 30 operational power generation projects across 11 states and 2 provinces and an 84-mile, 500 kilovolt electric transmission line located in California. In addition, the Company has one 53 MW biomass project under construction in Georgia and one approximate 300 MW wind project under construction in Oklahoma. Atlantic Power also owns a majority interest in Rollcast Energy, a biomass power plant developer in Charlotte, NC. Atlantic Power is incorporated in British Columbia, headquartered in Boston and has offices in Chicago, Toronto, Vancouver and San Diego. The Company's corporate strategy is to increase the value of the Company through accretive acquisitions in North American markets while generating stable, contracted cash flows from its existing assets to sustain its dividend payout to shareholders. The Company's dividend is currently paid monthly at an annual rate of Cdn$1.15 per share. Atlantic Power has a market capitalization of approximately $1.8 billion and trades on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit the Company's website at www.atlanticpower.com or contact: Atlantic Power Corporation Amanda Wagemaker, Investor Relations (617) 977-2700 email@example.com Copies of financial data and other publicly filed documents get filed on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on the Company's website. Cautionary Note Regarding Forward-looking Statements To the extent any statements made in this news release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended and forward-looking information as defined under Canadian securities law (collectively, "forward-looking statements"). Certain statements in this news release may constitute "forward-looking statements", which reflect the expectations of management regarding the future growth, results of operations, performance and business prospects and opportunities of the Company and its projects and other matters. These statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "project," "continue," "believe," "intend," "anticipate," "expect" or similar expressions that are predictions of or indicate future events or trends and which do not relate solely to present or historical matters. Examples of such statements in this press release include, but are not limited, to statements with respect to the following: -- The expectation that distributions from the Company's projects will be in the range of $255 million to $265 million for the full year 2012; -- The expectation that overall levels of operating cash flows in 2012 will be improved over actual 2011 levels; -- The expectation that there will be significant increases in cash available for distribution from 2011 and that the Payout Ratio in 2012 will be approximately 96% to 102%; -- The expectations regarding quarterly fluctuations in the Company's Payout Ratio and the impact of certain interest payments on the Company's Payout Ratio; -- The expectation that Canadian Hills and Piedmont, in aggregate, will add $24 to $29 million in cash flow starting in 2013; -- The expectation that cash flow from the Company's Orlando project will increase by $14 to $18 million a year starting in 2014; -- The expectations regarding decreases in cash flow from the Company's Lake and Auburndale projects after their PPAs expire and possible cash flow from other projects that may partially offset such decreases; -- The expectation that potential new PPAs at the Company's Lake and Auburndale projects would not individually achieve a better result in the near-term than that of its tolling agreement with Pasco; -- The expectation regarding contributions from acquisitions and dispositions to support the Company's continued ability to pay its dividend; and -- The expectations regarding the commercial operations date for Piedmont Green Power and Canadian Hills Wind. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the Company's periodic reports as filed with the Securities and Exchange Commission and applicable securities regulatory authorities in Canada from time to time for a detailed discussion of the risks and uncertainties affecting the Company. Although the forward-looking statements contained in this news release are based upon what are believed to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. The financial outlook information contained in this news release is presented to provide readers with guidance on the cash distributions expected to be received by the Company and to give readers a better understanding of the Company's ability to pay its current level of distributions into the future. Readers are cautioned that such information may not be appropriate for other purposes. Atlantic Power Corporation Consolidated Balance Sheets (in thousands of U.S. dollars) September 30, December 31, 2012 2011 (Unaudited) Assets Current assets: Cash and cash equivalents $42,872 $60,651 Restricted cash 112,633 21,412 Accounts receivable 80,190 79,008 Current portion of derivative instruments 10,792 10,411 assets Inventory 20,105 18,628 Prepayments and other current assets 27,751 7,615 Assets held for sale 203,111 - Refundable income taxes 3,646 3,042 Total current assets 501,100 200,767 Property, plant and equipment, net 1,730,765 1,388,254 Transmission system rights - 180,282 Equity investments in unconsolidated 432,525 474,351 affiliates Other intangible assets, net 557,356 584,274 Goodwill 334,668 343,586 Derivative instruments asset 14,236 22,003 Other assets 73,345 54,910 Total assets $3,643,995 $3,248,427 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $13,997 $18,122 Accrued interest 29,453 19,916 Other accrued liabilities 82,690 43,968 Revolving credit facility 20,000 58,000 Current portion of long-term debt 303,890 20,958 Current portion of derivative instruments 42,440 20,592 liability Dividends payable 11,627 10,733 Liabilities associated with assets held for 157,420 - sale Other current liabilities 4,014 165 Total current liabilities 665,531 192,454 Long-term debt 1,225,661 1,404,900 Convertible debentures 326,067 189,563 Derivative instruments liability 103,411 33,170 Deferred income taxes 161,266 182,925 Power purchase and fuel supply agreement 45,265 71,775 liabilities, net Other non-current liabilities 63,996 57,859 Commitments and contingencies - - Total liabilities $2,591,197 $2,132,646 Equity Common shares, no par value, unlimited authorized shares; 119,294,718 and 113,526,182 issued and outstanding at 1,286,399 1,217,265 September 30, 2012 and December 31, 2011, respectively Preferred shares issued by a subsidiary 221,304 221,304 company Accumulated other comprehensive income 17,253 (5,193) (loss) Retained deficit (474,489) (320,622) Total Atlantic Power Corporation 1,050,467 1,112,754 shareholders' equity Noncontrolling interest 2,331 3,027 Total equity 1,052,798 1,115,781 Total liabilities and equity $3,643,995 $3,248,427 Atlantic Power Corporation Consolidated Statements of Operations (in thousands of U.S. dollars, except per share amounts) (Unaudited) Three months ended Nine months ended September September 30, 30, 2012 2011 2012 2011 Project revenue: Energy sales $72,033 $17,104 $218,883 $53,471 Energy capacity 68,354 27,070 193,911 81,859 revenue Other 14,112 521 51,036 1,153 154,499 44,695 463,830 136,483 Project expenses: Fuel 58,565 14,818 176,176 46,202 Operations and 35,848 8,124 111,027 25,618 maintenance Depreciation and 38,542 8,880 111,219 26,705 amortization 132,955 31,822 398,422 98,525 Project other income (expense): Change in fair value of derivative 17,213 (11,484) (40,953) (12,497) instruments Equity in earnings of unconsolidated 4,000 2,374 12,420 5,647 affiliates Interest expense, (4,211) (1,576) (12,637) (4,832) net Other expense, net (567) (7) (538) (40) 16,435 (10,693) (41,708) (11,722) Project income 37,979 2,180 23,700 26,236 Administrative and other expenses (income): Administration 6,309 11,839 21,992 20,379 Interest, net 25,829 3,337 69,269 10,815 Foreign exchange 7,659 21,576 4,440 20,383 gain Other income, net 272 - (5,728) - 40,069 36,752 89,973 51,577 Loss from operations before (2,090) (34,572) (66,273) (25,341) income taxes Income tax expense 3,166 (5,323) (19,076) (12,900) (benefit) Loss from continuing (5,256) (29,249) (47,197) (12,441) operations Income from discontinued 773 1,271 1,444 3,514 operations, net of tax Net loss (4,483) (27,978) (45,753) (8,927) Net income (loss) attributable to 2,963 (78) 9,071 (349) noncontrolling interest Net loss attributable to $(7,446) $(27,900) $(54,824) $(8,578) Atlantic Power Corporation Net loss per share attributable to Atlantic Power Corporation Shareholders: Basic $(0.06) $(0.40) $(0.47) $(0.13) Diluted $(0.06) $(0.40) $(0.47) $(0.13) Atlantic Power Corporation Consolidated Statements of Cash Flows (in thousands of U.S. dollars) (Unaudited) Nine months ended September 30, 2012 2011 Cash flows from operating activities: Net loss $(45,753) $(8,927) Adjustments to reconcile to net cash provided by operating activities Depreciation and amortization 117,464 32,711 Long-term incentive plan expense 2,344 2,257 Loss on the disposal of property, plant and equipment and other 840 - charges Impairment charge on equity 3,000 - investment Gain on sale of equity investments (578) - Equity in earnings from (14,842) (5,647) unconsolidated affiliates Distributions from unconsolidated 26,821 15,542 affiliates Unrealized foreign exchange loss 21,552 28,175 Change in fair value of derivative 40,953 12,497 instruments Change in deferred income taxes (24,278) (10,315) Change in other operating balances Accounts receivable (2,873) 258 Prepayments, refundable income taxes (18,656) (570) and other assets Accounts payable and accrued 14,855 1,536 liabilities Other liabilities 3,267 (1,178) Net cash provided by operating 124,116 66,339 activities Cash flows used in investing activities: Change in restricted cash (105,494) (12,379) Proceeds from sale of equity 27,925 8,500 investments Cash paid for equity investment (264) - Proceeds from related party loans - 15,455 Biomass development costs (372) (753) Construction in progress (336,153) (78,256) Purchase of property, plant and (1,172) (814) equipment Net cash used in investing (415,530) (68,247) activities Cash flows (used in) provided by financing activities: Proceeds from issuance of 130,000 - convertible debentures Proceeds from issuance of equity, 67,692 - net of offering costs Proceeds from project level debt 261,226 65,374 Repayment of project-level debt (12,050) (13,166) Payments for revolving credit (60,800) - facility borrowings Proceeds from revolving credit 22,800 - facility borrowings Deferred financing costs (25,339) - Dividends paid (108,152) (57,543) Net cash provided by (used in) 275,377 (5,335) financing activities Net decrease in cash and cash (16,037) (7,243) equivalents Less cash at discontinued operations (1,742) - Cash and cash equivalents at 60,651 45,497 beginning of the period Cash and cash equivalents at end of $42,872 $38,254 the period Supplemental cash flow information Interest paid $77,738 $21,567 Income taxes paid (refunded), net $3,145 $(352) Accruals for construction in $40,097 $19,547 progress Regulation G Disclosures Cash Available for Distribution is not a measure recognized under GAAP and does not have a standardized meaning prescribed by GAAP. Management believes Cash Available for Distribution is a relevant supplemental measure of the Company's ability to earn and distribute cash returns to investors. A reconciliation of Cash Flows from Operating Activities to Cash Available for Distribution and to Payout Ratio is provided below. Investors are cautioned that the Company may calculate this measure in a manner that is different from other companies. Project Adjusted EBITDA is defined as project income plus interest, taxes, depreciation and amortization (including non-cash impairment charges) and changes in fair value of derivative instruments. Project Adjusted EBITDA is not a measure recognized under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies and does not have a standardized meaning prescribed by GAAP. Management uses Project Adjusted EBITDA at the project-level to provide comparative information about project performance. A reconciliation of Project Adjusted EBITDA to project income is provided on the following page. Investors are cautioned that the Company may calculate this measure in a manner that is different from other companies. Atlantic Power Corporation Cash Available for Distribution (In thousands of U.S. dollars, except as otherwise stated) (Unaudited) Three months ended September Nine months ended 30, September 30, 2012 2011 2012 2011 Cash flows from $34,744 $21,624 $124,116 $66,339 operating activities Project-level debt (2,725) (2,825) (12,050) (13,166) repayments Purchase of property, (370) (268) (1,172) (814) plant and equipment Transaction costs( - 8,470 - 9,238 (1)) Dividends on preferred shares of a (3,321) - (9,767) - subsidiary company Cash Available for 28,328 27,001 101,127 61,597 Distribution((2)) Total cash dividends declared to $34,035 $19,010 $99,090 $57,552 shareholders Payout Ratio 120% 70% 98% 93% Expressed in Cdn$ Cash Available for 28,188 26,833 101,339 60,520 Distribution Total dividends declared to 34,288 18,874 99,637 56,259 shareholders ((1) )Represents business development costs associated with the acquisition of the Partnership. ((2) )Cash Available for Distribution is not a recognized measure under GAAP and does not have any standardized meaning prescribed by GAAP. Therefore, this measure may not be comparable to similar measures presented by other companies. Atlantic Power Corporation Project Adjusted EBITDA by Segment (in thousands of U.S. dollars) (Unaudited) Three months ended September 30, Nine months ended September 30, 2012 2011 2012 2011 Project Adjusted EBITDA by segment Northeast $20,346 $9,817 $85,156 $27,400 Southeast 23,150 21,635 69,892 63,892 Northwest 12,596 1,121 38,453 3,606 Southwest 23,440 1,523 47,952 4,894 Un-allocated (2,338) (233) (9,645) (838) corporate Total $77,194 $33,863 $231,808 $98,954 Reconciliation to project income Depreciation and 49,725 15,797 146,796 46,916 amortization Interest expense, 6,008 3,706 18,569 11,100 net Change in the fair value of (17,347) 10,871 38,443 12,913 derivative instruments Other expense 829 1,309 4,300 1,789 Project income $37,979 $2,180 $23,700 $26,236 Atlantic Power Corporation Project Adjusted EBITDA by Project (for Selected Projects) (in thousands of U.S. dollars) (Unaudited) Three months ended Nine months ended September 30, September 30, 2012 2012 Project Adjusted EBITDA by project Northeast Chambers $4,749 $18,735 Curtis Palmer 3,089 18,874 Kapuskasing (1,153) 2,809 Nipigon 3,000 10,240 North Bay (169) 4,214 Selkirk 4,455 12,752 Tunis 2,052 8,426 Other 4,323 9,106 Total 20,346 85,156 Southeast Auburndale 12,744 36,167 Lake 8,922 26,175 Other 1,484 7,550 Total 23,150 69,892 Northwest Williams Lake 6,696 15,953 Other 5,900 22,500 Total 12,596 38,453 Southwest Manchief 3,986 11,505 Morris 1,237 7,776 Other 18,217 28,671 Total 23,440 47,952 Un-allocated corporate (2,338) (9,645) Total $77,194 $231,808 Reconciliation to project income Depreciation and $49,725 $146,796 amortization Interest expense, net 6,008 18,569 Change in the fair value of (17,347) 38,443 derivative instruments Other expense, net 829 4,300 Project income $37,979 $23,700 http://www.atlanticpower.com http://photos.prnewswire.com/prnh/20110809/NE49346LOGO PRN Photo Desk, firstname.lastname@example.org SOURCE: Atlantic Power Corporation To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2012/05/c5140.html CO: Atlantic Power Corporation ST: British Columbia NI: OIL UTI ERN EST ERN DIV -0- Nov/05/2012 21:29 GMT