ATCO Reports Record Annual 2012 Earnings

ATCO Reports Record Annual 2012 Earnings 
CALGARY, ALBERTA -- (Marketwire) -- 02/21/13 -- - ATCO Ltd. (TSX:
ATCO today reported record earnings for 2012 led by strong
contributions from ATCO Structures & Logistics' worldwide activities. 
Earnings attributable to Class I and Class II Shares were $375
million ($6.51 per share) for the year ended December 31, 2012
compared to $327 million ($5.65 per share) in 2011. Adjusted Earnings
were $372 million for the year ended December 31, 2012 compared to
$330 million in 2011. 
Fourth quarter earnings were $99 million ($1.71 per share) compared
to $102 million ($1.76 per share) in the same period in 2011. Fourth
quarter Adjusted Earnings were $102 million and $83 million for the
same period in 2011. 
ATCO Structures & Logistics' strong performance in 2012 was driven
mainly from modular structures operations, as rental activity
increased and manufacturing expanded to meet growing demand for
workforce housing and site services, space rentals and lodging in the
resource rich regions of Australia, Canada, and South America. In
particular, Australian operations benefited from the construction of
workforce housing for three liquefied natural gas plants, two of
which are substantially complete and the third is expected to be
completed in the first quarter of 2013. 
ATCO Electric is building new transmission infrastructure to meet
Alberta's long term electricity demand and improve reliability for
consumers. ATCO Electric has approximately two dozen transmission
infrastructure projects either approved or under construction. In
2012, major industrial customers in northeast Alberta were connected
to the province's transmission grid and the electricity system
serving that growing region of the province was reinforced.
Construction continues on the Hanna Region Transmission Development
Project in southeast Alberta with an expected in-service by the end
of the second quarter of 2013. In the fourth quarter, ATCO Electric
received approval to commence construction of the Eastern Alberta
Transmission Line, which is expected to be in service in late 2014. 
Fourth quarter capital investment of $648 million by ATCO Electric,
ATCO Gas and ATCO Pipelines brought the total utility capital
investment for the year to $2.1 billion. T
hese capital expenditures
added to the rate base upon which the companies earn a regulated
ATCO Gas Australia marked its first full year of operations under
ATCO ownership, with higher earnings reflecting a favorable decision
on its appeal of an earlier decision covering the current Access
Arrangement period 2010 - 2014. 
Increased earnings in 2012 were partially offset by lower earnings at
ATCO Power primarily due to planned maintenance outages at several
ATCO Power generating plants and lower earnings from ATCO Energy
Solutions' natural gas liquids extraction and gas gathering and
processing operations. 

--  ATCO declared a first quarter dividend for 2013 of 37.5 cents per Class
    I Non-Voting and Class II Voting Share, a 15% increase over the 32.75
    cents paid in each of the previous four quarters. ATCO's annual dividend
    per share has increased for 20 consecutive years. 
--  ATCO's subsidiary, CU Inc., issued $200 million of 3.857% Debentures
    maturing on November 14, 2052. 
--  ATCO's subsidiary, Canadian Utilities Limited, issued $200 million of
    3.122% Debentures maturing November 9, 2022. 
--  Effective December 1, 2012, Nancy C. Southern was appointed Chair of
    ATCO Ltd. by its Board of Directors, replacing Ronald D. Southern. As
    Founder, ATCO Group, Mr. Southern continues to serve as a Director of
    ATCO Ltd.

A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to Class I and Class II Shares is provided

                                    For the Three Months       For the Year 
                                       Ended December 31  Ended December 31 
($ Millions except per share data)       2012       2011      2012     2011 
Adjusted Earnings (1)                     102         83       372      330 
Adjustments for Rate Regulated                                              
 Activities (2)                            (3)        19         3       23 
Acquisition Transaction Costs               -          -         -      (26)
Earnings Attributable to Class I and                                        
 Class II Shares                           99        102       375      327 
Earnings Per Share                       1.71       1.76      6.51     5.65 
Revenues                                1,185      1,130     4,362    3,991 
Funds Generated By Operations (3)         479        474     1,689    1,514 
(1) Adjusted Earnings are earnings attributable to Class I and Class II     
    Shares after adjusting for the timing of revenues and expenses          
    associated with rate regulated activities. Adjusted Earnings also       
    exclude one-time gains and losses and items that are not in the normal  
    course of business or day-to-day operations. Adjusted Earnings present  
    earnings on the same basis as was used prior to adopting International  
    Financial Reporting Standards (IFRS) - that basis being the U.S.        
    accounting principles for rate regulated entities - and they are a key  
    measure used to assess segment performance, to reflect the economics of 
    rate regulation and to facilitate comparability of ATCO's earnings with 
    other Canadian rate regulated companies.                                
(2) Refer to Note 4 to the consolidated financial statements for            
    descriptions of the adjustments for rate regulated activities and the   
    timing of their recovery from or refund to customers.                   
(3) This measure is cash flow from operations before changes in non-cash    
    working capital. It does not have standardized meaning under IFRS and   
    may not be comparable to similar measures used by other companies.      

The $371 million annual increase in revenues ($55 million in the
fourth quarter) was due primarily to higher business activity in ATCO
Structures & Logistics, increased rate base in the utilities, and the
acquisition of ATCO Gas Australia in the third quarter of 2011. These
increases in revenues were partially offset by lower flow through
natural gas sale
s in ATCO Energy Solutions' natural gas liquids
extraction operations. 
Funds Generated by Operations increased $175 million for the year ($5
million in the fourth quarter) primarily for the same reasons
earnings increased, as well as higher contributions by utility
customers required to connect customers to utility infrastructure. 
ATCO's consolidated financial statements and management's discussion
and analysis for the three months and year ended December 31, 2012,
will be available on the ATCO website (, via SEDAR
( or can be requested from the Corporation. 
ATCO Ltd., with more than 9,400 employees and assets of approximately
$14 billion, delivers service excellence and innovative business
solutions worldwide with leading companies engaged in structures &
logistics (manufacturing, logistics and noise abatement), utilities
(pipelines, natural gas and electricity transmission and
distribution), energy (power generation, natural gas gathering,
processing, storage and liquids extraction) and technologies
(business systems solutions). More information can be found at 
Forward-Looking Information: 
Certain statements contained in this news release may constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as "anticipate",
"plan", "estimate", "expect", "may", "will", "intend", "should", and
similar expressions. Forward-looking information involves known and
unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking information. The Corporation believes that the
expectations reflected in the forward-looking information are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking information should
not be unduly relied upon. 
Any forward-looking information contained in this news release
represents the Corporation's expectations as of the date hereof, and
is subject to change after such date. The Corporation disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events or
otherwise, except as required by applicable securities legislation.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
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