ATCO Reports 2013 First Quarter Earnings

ATCO Reports 2013 First Quarter Earnings 
CALGARY, ALBERTA -- (Marketwired) -- 04/26/13 -- ATCO Ltd.
(TSX:ACO.X) (TSX:ACO.Y) 
ATCO today reported higher Adjusted Earnings in the first quarter of
2013 driven by continued strong contributions from ATCO Structures &
Logistics' worldwide activities and continued investment in Alberta's
utility infrastructure. 
Adjusted Earnings were $120 million for the quarter ended March 31,
2013 compared to $115 million in the same period of 2012. Earnings
attributable to Class I and Class II Shares were $117 million for the
quarter ended March 31, 2013 compared to $119 million in the same
period of 2012. Adjusted Earnings will differ from earnings
attributable to Class I and Class II Shares because of the timing of
recoveries from or refunds to customers of amounts that are deferred
by the Utilities for regulatory purposes; however, over time there is
no difference. 
ATCO Structures & Logistics' strong performance in modular structures
operations continued in the first quarter of 2013 due to construction
of BHP Billiton's Jansen Potash Project in Saskatchewan and higher
fleet sales in North America, offset by reduced earnings from the
three large liquefied natural gas projects in Australia that were
under construction at this time last year and are now substantially
complete. 
Growth in the rate base continues to have a positive impact on ATCO
Electric. The Hanna Region Transmission Development Project, which
will provide major transmission reinforcement in southeast Alberta,
is nearing completion, and is expected to be in-service by the end of
the second quarter of 2013. Construction commenced on the Eastern
Alberta Transmission Line following receipt of project approval in
late 2012. The project will provide additional transmission capacity
to Alberta's existing electricity transmission system. Together, ATCO
Electric, ATCO Gas, and ATCO Pipelines invested $511 million in
utility infrastructure in the first quarter of 2013 to support
Alberta growth. 
Adjusted Earnings for the quarter were partially offset by lower
realized prices on short-term forward power sales contracts for ATCO
Power's Alberta generating plants and an unfavourable arbitration
decision that reduced earnings for the Sheerness plant. 
RECENT DEVELOPMENTS 
*
T 
--  ATCO declared a second quarter dividend for 2013 of 37.5 cents per Class 
I Non-Voting and Class II Voting Share. ATCO's annual dividend per share 
has increased for 20 consecutive years.  
--  ATCO's subsidiary, Canadian Utilities Limited, issued $175 million of 
4.5% Cumulative Redeemable Second Preferred shares at a price of $25.00 
per share.  
--  ATCO Ltd. announced on February 21, 2013, that it will ask its share 
owners at the May 16, 2013, annual and special meeting to approve a 
special resolution to increase the number of Class I Non-Voting Shares 
that it is authorized to issue. If the share owners approve this special 
resolution, ATCO intends to split its Class I Non- Voting Shares and 
Class II Voting Shares on a two-for-one basis by way of a share dividend 
in 2013.  


 
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
 
A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to Class I and Class II Shares is provided
below:

  
For the Quarter       
Ended March 31      
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($ Millions except per share data)                        2013       2012(4)
----------------------------------------------------------------------------
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Adjusted Earnings (1)                                      120          115 
Adjustments for Rate Regulated Activities (2)               (3)           4 
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Earnings Attributable to Class I and Class II                               
 Shares                                                    117          119 
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Revenues                                                 1,099        1,041 
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Funds Generated By Operations (3)                          458          443 
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(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 5 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.      
(4) 2012 financial information has been restated as a result of adopting new 
and amended IFRS accounting standards that became effective in 2013.     


 
The $58 million increase in revenues was due primarily to increased
rate base in the utilities, colder weather in the first quarter of
2013, and increased flow-through natural gas sales in ATCO Energy
Solutions' natural gas liquids extraction operations.
 
ATCO's consolidated financial statements and management's discussion
and analysis for the three months ended March 31, 2013, will be
available on the ATCO website (www.atco.com), via SEDAR
(www.sedar.com) 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
www.atco.com.
 
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.
Contacts:
ATCO Ltd.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.atco.com