Atlantic Power Corporation Releases First Quarter 2013 Results

BOSTON, May 8, 2013 /CNW/ - Atlantic Power Corporation (NYSE: AT) (TSX: ATP) 
("Atlantic Power" or the "Company") today released its results for the three 
months ended March 31, 2013. 
All amounts are in U.S. dollars unless otherwise indicated. Cash Available for 
Distribution, Cash Distributions from Projects, 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 the GAAP reconciliation of "Cash Available for Distribution", "Cash 
Distributions from Projects", "Payout Ratio" and "Project Adjusted EBITDA" as 
used in this news release. 
Q1 2013 Financial and Operational Highlights 


    --  Cash flows from operating activities increased 11% from the
        year-ago period to $74.2 million
    --  Project income (loss) increased $68.1 million from the year-ago
        period to $31.1 million
    --  Project Adjusted EBITDA increased 21% from the year-ago period
        to $80.6 million
    --  Cash Available for Distribution increased 11% from the year-ago
        period to $66.2 million
    --  Contributions from new businesses, including Canadian Hills and
        Meadow Creek, were the primary drivers of higher financial
        results
    --  2013 annual guidance of $250 to $275 million in Project
        Adjusted EBITDA reaffirmed
    --  2013 annual Payout Ratio guidance of 65% to 75%, including cash
        flow from discontinued operations, reaffirmed

Subsequent Events and Developments
    --  Continued progress on our growth strategy by reaching
        commercial operation of the Piedmont Green Power biomass
        project in Georgia on April 19, 2013
    --  Significant progress executing the Company's strategy to divest
        non-core assets:
        o Closed the sale of the Company's interests in the Auburndale,
          Lake and Pasco projects in Florida for approximately $117
          million in net cash proceeds
        o Closed the sale of the Company's interests in the Path 15
          transmission line in California for approximately $56 million
          in net cash proceeds
        o Announced agreement to sell the Company's 17% interest in the
          Gregory project in Texas for expected net cash proceeds of
          approximately $33 million
    --  Utilized portion of proceeds from the sale of the Florida
        Projects to fully repay $64 million of outstanding borrowings
        under the Company's senior credit facility
    --  Syndicated the Company's $44 million tax equity investment in
        the Canadian Hills wind project
    --  On track to achieve mid-year goal of $140 to $150 million to
        redeploy in growth strategy

"Our financial results for the quarter improved significantly from a year ago 
primarily due to the execution of our growth strategy with increased earnings 
and cash flow from projects we either acquired or built in 2012, particularly 
Canadian Hills and Meadow Creek," said Barry Welch, President and CEO of 
Atlantic Power.  "We also closed several pending asset sales subsequent to the 
end of the quarter and completed the syndication of our tax equity investment 
in Canadian Hills.  This puts us on track to achieve our goal of having $140 
to $150 million of cash available by mid-year to invest in operating, early 
construction or late-stage development projects beginning in the second half 
of this year."
    Atlantic Power Corporation

Table 1 – Selected Results

(in millions of U.S. dollars, except as otherwise
stated)

Unaudited
                                       Three months ended March 31,
                                       2013      2012

Excluding results of discontinued
operations

Project revenue                        $140.2    $118.7

Project income (loss)                  31.1      (37.0)

Project Adjusted EBITDA ((1))          80.6      66.6

Cash Distributions from Projects ((1)) 54.3      53.7

Aggregate power generation (Net MWh)   1,912,424 1,492,598

Weighted average availability          95.6%     97.4%

Including results from discontinued
operations

Cash flows from operating activities   $74.2     $66.6

Cash Available for Distribution ((1))  66.2      59.9

Total cash dividends declared to       25.2      32.8
shareholders

Payout ratio ((1))                     38%       55%

The Path 15, Auburndale, Lake and Pasco projects have been
classified as assets held for sale, and accordingly, the revenues,
project income (loss), Project Adjusted EBITDA and Cash
Distributions from Projects of these assets have been classified as
discontinued operations for the three months ended March 31, 2013
and 2012, which means that the results from these discontinued
operations are excluded from these figures. The results for the
assets held for sale have also been excluded from the aggregate
power generation and weighted average availability statistics.
Under GAAP, the cash flow attributable to the Projects Held for
Sale is included in cash flow from operating activities as shown on
the Consolidated Statement of Cash Flows; therefore, the Company's
calculations of Cash Available for Distribution and Payout Ratio as
shown herein also include cash flows from the Projects Held for
Sale.

(1) Project Adjusted EBITDA, Cash Available for Distribution, Cash
Distributions from Projects and Payout Ratio are not recognized
measures under GAAP and do not have any standardized meaning
prescribed by GAAP; therefore, these measures may not be comparable
to similar measures presented by other companies. Please refer to
Table 9 for reconciliations of these non-GAAP measures to GAAP.

Financial Review

(Please see Projects Held for Sale/Discontinued Operations for discussion of 
accounting treatment)

Financial Results for the three months ended March 31, 2013

Cash flows from operating activities increased by $7.6 million to $74.2 
million for the three months ended March 31, 2013, compared to $66.6 million 
for the same period in 2012.  The increase over the prior-year period is 
primarily due to contributions from new projects the Company added in 2013, 
including its Canadian Hills wind project ("Canadian Hills") and its Meadow 
Creek wind project ("Meadow Creek") as well as increased contributions from 
the Company's equity method projects.

Project income increased by $68.1 million to $31.1 million for the quarter 
ended March 31, 2013, compared to project loss of $(37.0) million for the same 
period in 2012.  The increase relates primarily to $65.8 million of non-cash, 
mark-to-market adjustments to reflect the fair value of gas purchase 
agreements in our Northeast segment.  Generally, reported 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 method investments, 
increased by $14.0 million to $80.6 million for the quarter ended March 31, 
2013, compared to $66.6 million for the same period in 2012.  The increase 
over the prior-year period is primarily due to contributions from new projects 
added in 2013, which include $6.7 million from Canadian Hills and $3.1 million 
from Meadow Creek.  The Company has not reconciled non-GAAP financial measures 
relating to individual projects to the directly comparable GAAP measures due 
to the difficulty in making the relevant adjustments on an individual project 
basis.

Cash Distributions from Projects increased by $0.6 million to $54.3 million 
for the three months ended March 31, 2013, compared to $53.7 million for the 
same period in 2012.  The comparison was relatively flat despite the addition 
of Canadian Hills and Meadow Creek. Typically new projects retain a certain 
amount of cash in order to meet debt service reserves or provide for working 
capital needs. Meadow Creek did not make any distributions during the first 
quarter but is expected to do so later this year as permitted under its 
project debt arrangements.  Canadian Hills made a modest cash distribution in 
the first quarter while retaining cash for working capital purposes, some of 
which is expected to be distributed later this year.

For further information, attached to this news release is a summary of Project 
Adjusted EBITDA by segment for the three months ended March 31, 2013 and 2012 
(Table 7) with a reconciliation to Project income (loss); a bridge from 
Project Adjusted EBITDA to Cash Distributions from Projects by segment for the 
three months ended March 31, 2013 (Table 8A) and the three months ended March 
31, 2012 (Table 8B); a reconciliation of Cash Distributions from Projects  and 
Cash Available for Distribution to cash flows from operating activities for 
the three months ended March 31, 2013 and 2012 (Table 9); a reconciliation of 
Cash Available for Distribution and Payout Ratio to cash flows from operating 
activities for the three months ended March 31, 2013 and 2012 (Table 9); and a 
summary of Project Adjusted EBITDA for selected projects (top contributors 
based on the Company's 2013 budget, representing approximately 75% to 80% of 
total Project Adjusted EBITDA) for the three months ended March 31, 2013 and 
2012 (Table 10).

Cash Available for Distribution and Payout Ratio

For the three months ended March 31, 2013, Cash Available for Distribution 
increased by $6.3 million to $66.2 million, compared to $59.9 million for the 
same period in 2012.  This increase over the prior-year period is primarily 
due to contributions from new projects added in 2013, which include Canadian 
Hills and Meadow Creek.

For the three months ended March 31, 2013, the Payout Ratio associated with 
the cash dividend was 38% compared to 55% in the comparable prior-year period, 
reflecting in part the lower dividend rate, effective beginning in March of 
2013.  For further information, attached to this news release is a 
reconciliation of Cash Available for Distribution and Payout Ratio to cash 
flows from operating activities (Table 9).

Projects Held for Sale/Discontinued Operations

Financial results for the three months ended March 31, 2013 and March 31, 2012 
are affected by the classification of the Company's interests in the Path 15 
transmission line ("Path 15"), Auburndale Power Partners, L.P. ("Auburndale"), 
Lake CoGen, Ltd. ("Lake") and Pasco CoGen, Ltd. ("Pasco") projects 
(collectively, the "Projects Held for Sale"), as assets held for sale; 
accordingly, the revenues, project income, Project Adjusted EBITDA and Cash 
Distributions from Projects for the Projects Held for Sale have been 
classified as discontinued operations and are excluded from continuing 
operations results.  The results for the Projects Held for Sale have been 
separately stated in the Consolidated Statements of Operations as "Income from 
discontinued operations, net of tax".

Project income attributable to the Projects Held for Sale was $0.9 million for 
the three months ended March 31, 2013 compared to $11.6 million for the same 
period in 2012.  Project Adjusted EBITDA attributable to the Projects Held for 
Sale was $30.9 million for the three months ended March 31, 2013 compared to 
$26.2 million for the same period in 2012.  Cash Distributions from Projects 
attributable to the Projects Held for Sale was $22.2 million for the three 
months ended March 31, 2013 compared to $15.5 million for the same period in 
2012.

Under GAAP, the cash flow attributable to the Projects Held for Sale is 
included in cash flow from operating activities as shown on the Consolidated 
Statement of Cash Flows; therefore, the Company's calculations of Cash 
Available for Distribution and Payout Ratio as shown herein also include cash 
flow from the Projects Held for Sale. Cash Available for Distribution from 
Projects Held for Sale for the three months ended March 31, 2013 and 2012 was 
$26.0 and $23.0 million, respectively.

The Company has not reconciled non-GAAP financial measures relating to the 
Projects Held for Sale to the directly comparable GAAP measures due to the 
difficulty in making the relevant adjustments on an individual project basis.  
The Delta-Person generating station ("Delta-Person") and the Gregory project 
('Gregory"), both of which are under purchase and sale agreements, are 
included in the Company's financial results for the three months ended March 
31, 2013 and 2012, as the projects are accounted for under the equity method 
of accounting.

Reaffirming 2013 Guidance
    --  Annual Project Adjusted EBITDA guidance of $250 to $275 million
    --  Annual Cash Available for Distribution guidance of $85 to $100
        million
    --  Annual Payout Ratio guidance of 65% to 75%, including cash flow
        from discontinued operations

Project Adjusted EBITDA

The Company is reaffirming its previous guidance for 2013 Project Adjusted 
EBITDA in the range of $250 to $275 million.  (Note that Project Adjusted 
EBITDA attributable to the Projects Held for Sale is excluded from both Q1 
2013 results and 2013 guidance.)

Cash Available for Distribution

The Company is reaffirming its previous guidance for 2013 Cash Available for 
Distribution in the range of $85 to $100 million.  (Note that Cash Available 
for Distribution includes cash flow from discontinued operations.  Cash 
Available for Distribution from discontinued operations for the years ended 
December 31, 2013 is expected to be approximately $44 million and for the year 
ended December 31, 2012 was approximately $77 million.)  The Company has not 
reconciled non-GAAP financial measures relating to the Projects Held for Sale 
to the directly comparable GAAP measures due to the difficulty in making the 
relevant adjustments on an individual project basis.

Dividend Payout Ratio

The Company is reaffirming its guidance range for 2013 Payout Ratio of 
approximately 65% to 75%, including cash flow from discontinued operations.  
On a pro forma basis, reflecting the lower dividend rate for a full year and 
excluding cash flow from discontinued operations, the 2013 Pro Forma Payout 
Ratio is expected to be approximately 100%, based on the midpoint of our cash 
flow guidance.  The Company is also reaffirming its 2014 Payout Ratio guidance 
of 75%-85%.  (Please see Update on Growth Initiatives for factors that may 
affect 2014 Payout Ratio guidance.)

See Table 2 for full-year 2013 guidance and first quarter 2013 actual results.

Atlantic Power Corporation

Table 2 – 2013 Annual Guidance and Q1 2013 Actual

(in millions of U.S. dollars, except as otherwise
stated)

Unaudited                          2013 Annual Guidance Q1 2013 Actual

Project Adjusted EBITDA ((1)(2))   $250 - $275          $80.6

Cash Available for Distribution (  $85 - $100           $66.2
(2)(3))

Total cash dividends declared to   $60 - $62            $25.2
shareholders

Payout Ratio, including            65% - 75%            38%
discontinued operations ((2)(3))

(1) The Path 15, Auburndale, Lake and Pasco projects have been
classified as assets held for sale. Accordingly, the Project Adjusted
EBITDA of these assets has been classified as discontinued operations
for the three months ended March 31, 2013, which means that the
results from these discontinued operations are excluded from this
figure.

(2) Project Adjusted EBITDA, Cash Available for Distribution and
Payout Ratio are not recognized measures under GAAP and do not have
any standardized meaning prescribed by GAAP; therefore, these measures
may not be comparable to similar measures presented by other
companies. Please refer to Table 9 for a reconciliation of these
non-GAAP measures to GAAP. The Company has not provided a
reconciliation of forward-looking non-GAAP measures, due primarily to
variability and difficulty in making accurate forecasts and
projections, as not all of the information necessary for a
quantitative reconciliation is available to the Company without
unreasonable efforts.

(3) Under GAAP, the cash flow attributable to the Projects Held for
Sale is included in cash flow from operating activities as shown on
the Consolidated Statement of Cash Flows; therefore, the Company's
calculations of Cash Available for Distribution and Payout Ratio as
shown herein also include cash flow from the Projects Held for Sale.

Liquidity

The Company, as previously indicated, still expects to have approximately $140 
to $150 million of net cash available to invest in growth projects by mid-2013 
after retaining at least $50 million of unrestricted cash and while preserving 
$210 to $225 million of access under its revolving credit facility.  As more 
fully described in the Company's quarterly report on Form 10-Q for the fiscal 
quarter ended March 31, 2013, the Company has initiated discussions with the 
lenders under its revolving credit facility to obtain a waiver of, or an 
amendment to, the revolving credit facility with respect to, among other 
things, compliance with certain ratios. The closing of the Gregory and 
Delta-Person asset sales in the third quarter of 2013 are expected to add 
further to the available net cash balance.  Consistent with previous 
expectations, the Company plans to begin investing this cash in the second 
half of this year.

Atlantic Power Corporation

Table 3 – Projected Liquidity and Cash Available for
Investment (in millions of U.S. dollars)

Mid-2013



Revolver capacity less letters of credit           $210 - $225

Unrestricted cash                                  $190 - $200

Less: unrestricted planned cash reserve            $(50)

Total Liquidity                                    $350 - $375

Cash available for investment without drawing on   $140 - $150
revolver

Update on Growth Initiatives

Potential Nipigon HRSG Project

The Company recently decided to defer its investment decision on an elective 
growth project to upgrade the Heat Recovery Steam Generator ("HRSG") at its 
Nipigon facility, originally planned for 2013, as approval for the required 
modification to the air permit has not yet been received from the Ontario 
Ministry of the Environment.  Although the Company is still pursuing these 
approvals, the timing of the project is uncertain.  Thus, an approximate $11 
million capital cost was removed from 2013 guidance, but has not yet been 
incorporated in the 2014 Payout Ratio guidance.  If a decision were made to 
undertake the project in 2014, the cash outlay would be reflected in guidance 
and the Payout Ratio in 2014 would be expected to exceed the guidance range of 
75% to 85%.

Acquisition and Development Opportunities

With respect to potential investments utilizing our net available cash in the 
second half of the year, the Company is reviewing two types of growth 
opportunities: natural gas and renewable acquisitions generating operating 
cash flows and late-stage renewable development projects that would contribute 
cash flows once they achieve commercial operation.  In addition, the Company 
continues to evaluate and advance the renewable development pipeline acquired 
with its Ridgeline acquisition.

Business Update

Executing Non-Core Asset Sales

On April 30, 2013, the Company closed the sale of its interests in Path 15 
(the "Path 15 Sale"). Atlantic Power received net cash proceeds from the Path 
15 Sale of approximately $56 million, including working capital adjustments 
and a management termination fee.  All debt issued by Path 15, totaling $137.2 
million as of March 31, 2013, transferred with the Path 15 Sale.

On April 12, 2013, the Company closed the sale of its interests in three 
Florida projects (the "Florida Project Sale"), Auburndale, Lake, and Pasco for 
net cash proceeds of approximately $117 million.  The Company used a portion 
of the net cash proceeds from the Florida Project Sale to fully repay the 
$64.1 million outstanding balance on its senior credit facility.

On April 2, 2013, the Company, along with its partners, entered into a 
purchase and sale agreement to sell its 17% interest in Gregory for net cash 
proceeds of approximately $33 million.  Closing of the sale is subject to 
customary closing conditions and, regulatory and other approvals, and is 
expected to occur in the third quarter of 2013.

As previously disclosed, in December 2012, Atlantic Power signed a purchase 
and sale agreement with PNM, a subsidiary of PNM Resources, Inc., pursuant to 
which the Company has agreed together with its partners in the investment, to 
sell Delta-Person. The Company expects this transaction to close in the third 
quarter of 2013, subject to regulatory approval, and expects net cash proceeds 
of approximately $9.0 million.

Piedmont Commences Commercial Operation

The Company's 53.5 MW Piedmont Green Power biomass project ("Piedmont") 
located in Barnesville, Georgia has a 20-year power purchase agreement ("PPA") 
with Georgia Power Company.  The project declared its Commercial Operation 
Date ("COD") under its PPA on April 19, 2013.  Further start-up optimization 
will continue for several months.  The project is also working through a 
dispute with the contractor, Zachry Industrial, Inc. ("Zachry"), about their 
performance obligations under the turnkey engineering, procurement and 
construction contract between Piedmont and Zachry.

The Company still expects project distributions from Piedmont to average $6 to 
$8 million annually on a full-year run-rate basis, although it will revisit 
this guidance as necessary with additional operating experience.  Project 
Adjusted EBITDA and cash flow results for the project in 2013 will be below 
full-year levels due to the delay in and costs associated with achieving, 
commercial operation and optimizing performance.

Canadian Hills Tax Equity Syndication Closed

On May 2, 2013, the Company syndicated its $44 million tax equity investment 
in Canadian Hills with Bank of America Merrill Lynch.  In December 2012, 
Canadian Hills received tax equity investments totaling $225 million from a 
consortium of four institutional tax equity investors.  At that time, Atlantic 
Power also made a $44 million tax equity investment in the project.  Net cash 
proceeds received by the Company for its tax equity interest were 
approximately $42 million, which accounts for the receipt by the Company of 
cash distributions and tax benefits in 2013 and transaction costs.  The 
syndication of the Company's interest completes the sale of 100% of Canadian 
Hills' $269 million of tax equity interests.  Canadian Hills had no debt at 
March 31, 2013.

U.S. Federal Grant Received for Meadow Creek

On April 19, 2013, Meadow Creek received $49.0 million from the U.S. Treasury 
1603 grant program, and repaid its $56.5 million cash grant loan using the 
proceeds of the grant along with $4.7 million from the former owners to cover 
the shortfall from the impact of the federal sequester on spending and a $2.8 
million contribution from the Company to cover the shortfall from the lower 
grant-eligible costs, primarily attributable to a lower project cost versus 
budget.  This reduced the Company's short-term debt by $56.5 million.  Meadow 
Creek's outstanding debt at March 31 consisted of the $172.8 million 
construction loan which converted to a non-recourse term loan earlier in March 
2013.

Ned Hall Appointed Executive Vice President – Chief Operating Officer

On April 2, 2013, Ned Hall joined the Company as its Executive Vice President 
– Chief Operating Officer ("COO"). In this position, Mr. Hall is responsible 
for all of Atlantic Power's operations, asset management, environmental health 
& safety and engineering functions, and is focused on driving ongoing Project 
Adjusted EBITDA performance from the existing fleet.  As a member of the 
executive management team, he also plays a central role in the development and 
execution of Atlantic Power's operational and strategic initiatives.

Mr. Hall has more than 25 years of management and operational experience in 
the energy industry. Most recently, Mr. Hall served as Executive Vice 
President - COO Global Generation at AES Corporation, a publicly traded global 
power company.  Prior to that, Mr. Hall held multiple positions at AES 
Corporation including President, North America; President, Wind Generation; 
and Managing Director, Global Business Development.

Other Developments

Shareholder Lawsuits

In March, April and May, several purported securities class action complaints 
related to, among other things, claims that the Company made materially false 
and misleading statements and omissions regarding the sustainability of its 
common share dividend were filed in the United States, Ontario and Quebec 
against the Company and certain of its current and former executive officers 
as more fully described in the Company's quarterly report on Form 10-Q for the 
fiscal quarter ended March 31, 2013.  We intend to defend vigorously against 
these actions.

Investor Conference Call and Webcast

A telephone conference call hosted by Atlantic Power's management team will be 
held on Thursday, May 9, 2013 at 8:30 AM ET.  An accompanying slide 
presentation will be available on the Company's website prior to the call.  
The telephone numbers for the conference call are: U.S. Toll Free: 
1-888-317-6016; Canada Toll Free: 1-855-669-9657; International Toll: +1 
412-317-6016.  The conference call will also be broadcast over Atlantic 
Power's website, with an accompanying slide presentation. 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 10027597. The conference call will also be archived on Atlantic 
Power's website.

About Atlantic Power

Atlantic Power owns and operates a diverse fleet of power generation assets in 
the United States and Canada.  Atlantic Power's power generation projects sell 
electricity to utilities and other large commercial customers largely under 
long-term power purchase agreements, which seek to minimize exposure to 
changes in commodity prices.  Its power generation projects in operation have 
an aggregate gross electric generation capacity of approximately 3,018 MW in 
which its aggregate ownership interest is approximately 2,098 MW. Its current 
portfolio consists of interests in twenty-nine operational power generation 
projects across eleven states in the United States and two provinces in 
Canada.  Atlantic Power recently acquired Ridgeline Energy, a wind and solar 
development company located in Seattle, Washington, which enhances its ability 
to develop, acquire and operate wind and solar energy projects in the United 
States and Canada.  Atlantic Power also owns a majority interest in Rollcast 
Energy, a biomass power plant developer in North Carolina.

Atlantic Power has a market capitalization of approximately $600 million 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  info@atlanticpower.com

Copies of certain financial data and other publicly filed documents are 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 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 our Company and our projects.  These statements, which are 
based on certain assumptions and describe our 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 the sales of Delta-Person and Gregory will
        successfully close in the third quarter of 2013 with net
        proceeds received by the Company of approximately $33 million
        for Gregory and $9 million for Delta-Person;
    --  the expectation that the Company will have approximately $140
        to $150 million of net cash available in the second half of
        this year to invest in one or more acquisitions and that those
        acquisitions will make accretive contributions to the Company's
        cash flows;
    --  the expectation that the Company will receive distributions
        from Meadow Creek and Canadian Hills later this year;
    --  the expectation that discontinued operations will account for
        approximately $44 million of Cash Available for Distribution
        for the full year 2013;
    --  the expectation that 2013 Project Adjusted EBITDA will be in
        the range of $250 to $275 million;
    --  the expectation that 2013 Cash Available for Distribution will
        be in the range of $85 to $100 million;
    --  the expectation that total cash dividends declared to
        shareholders in 2013 will be in the range of $60 to to $62;
    --  the expectation that the 2013 Payout Ratio will be in the range
        of 65% to 75% and, on a pro forma basis, reflecting the lower
        dividend for a full year and excluding cash flow from
        discontinued operations, approximately 100%;
    --  the expectation that the 2014 Payout Ratio is expected to be in
        the range of 75% to 85%;
    --  the expectation that the Company will receive $6 to $8 million
        in project cash flows on a full year basis from Piedmont;
    --  the expectation that Piedmont will submit an application under
        the U.S. Treasury's 1603 grant program and that proceeds from
        the grant will be applied to repay the project's $51 million
        bridge loan with a possible contribution from the Company to
        cover the shortfall;
    --  compliance with the Company's senior credit facility and the
        Company's ability to obtain requested waivers and/or amendments
        to the senior credit facility; and
    --  the results of operations and performance of its projects,
        business prospects, opportunities and future growth of the
        Company will be as described herein.

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.  Please refer to the 
factors discussed under "Risk Factors" in the Company's periodic reports as 
filed with the Securities and Exchange Commission from time to time for a 
detailed discussion of the risks and uncertainties affecting our 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

Table 4 – Consolidated Balance Sheet (in millions of
U.S. dollars)
                                                March 31, December 31,
                                                2013      2012

Assets                                          Unaudited

Current assets:

Cash and cash equivalents                       $85.7     $60.2

Restricted cash                                 43.5      28.6

Accounts receivable                             78.4      58.5

Current portion of derivative instruments asset 9.0       9.5

Inventory                                       20.0      16.9

Prepayments and other current assets            16.5      13.4

Security deposits                               1.2       19.0

Assets held for sale                            346.8     351.4

Refundable income taxes                         3.6       4.2

Total current assets                            604.7     561.7



Property, plant and equipment, net              2,020.0   2,055.5

Equity investments in unconsolidated affiliates 411.1     428.7

Other intangible assets, net                    505.7     524.9

Goodwill                                        334.7     334.7

Derivative instruments asset                    5.8       11.1

Other assets                                    57.4      86.1

Total assets                                    $3,939.4  $4,002.7



Liabilities and Shareholder's Equity

Current liabilities:

Accounts payable                                $14.4     $17.8

Accrued interest                                30.0      19.0

Other accrued liabilities                       43.0      73.7

Revolving credit facility                       64.1      67.0

Current portion of long-term debt               121.7     121.2

Current portion of derivative instruments       25.9      33.0
liability

Dividends payable                               3.9       11.5

Liabilities associated with assets held for     205.3     189.0
sale

Other current liabilities                       1.8       3.3

Total current liabilities                       510.1     535.5



Long-term debt                                  1,474.1   1,459.1

Convertible debentures                          418.2     424.2

Derivative instruments liability                110.2     118.1

Deferred income taxes                           159.1     164.0

Power purchase and fuel supply agreement        42.5      44.0
liabilities, net

Other non-current liabilities                   70.0      71.4

Commitments and contingencies                   -         -

Total liabilities                               2,784.2   2,816.3



Equity

Common shares, no par value, unlimited
authorized shares; 119,783,366

and 119,446,865 issued and outstanding at March 1,285.3   1,285.5
31, 2013 and

December 31, 2012, respectively

Preferred shares issued by a subsidiary company 221.3     221.3

Accumulated other comprehensive income (loss)   (2.4)     9.4

Retained deficit                                (583.5)   (565.2)

Total Atlantic Power Corporation shareholders'  920.7     951.0
equity

Noncontrolling interest                         234.5     235.4

Total equity                                    1,155.2   1,186.4

Total liabilities and equity                    $3,939.4  $4,002.7
    Atlantic Power Corporation

Table 5 – Consolidated Statements of Operations

(in millions of U.S. dollars, except per share amounts)

Unaudited
                                   Three months ended March 31,
                                   2013  2012

Project revenue:

Energy sales                       $69.0 $60.0

Energy capacity revenue            44.8  37.0

Other                              26.4  21.7
                                   140.2 118.7



Project expenses:

Fuel                               49.6  46.2

Operations and maintenance         28.3  24.7

Development                        1.7   -

Depreciation and amortization      41.3  26.5
                                   120.9 97.4

Project other income (expense):

Change in fair value of derivative 12.6  (57.2)
instruments

Equity in earnings of              7.2   2.9
unconsolidated affiliates

Interest expense                   (8.0) (4.0)
                                   11.8  (58.3)

Project income (loss)              31.1  (37.0)



Administrative and other expenses
(income):

Administration                     8.3   7.7

Interest, net                      25.9  22.0

Foreign exchange loss (gain)       (7.5) 1.0
                                   26.7  30.7

Income (loss) from continuing      4.4   (67.7)
operations before income taxes

Income tax benefit                 (2.5) (16.9)

Income (loss) from continuing      6.9   (50.8)
operations

Income from discontinued           0.9   11.6
operations, net of tax ((1))

Net income (loss)                  7.8   (39.2)

Net loss attributable to           (1.9) (0.1)
noncontrolling interest

Net income attributable to
preferred share dividends of a     3.2   3.2
subsidiary company

Net income (loss) attributable to  $6.5  $(42.3)
Atlantic Power Corporation



Basic earnings (loss) earnings per
share:

Income (loss) from continuing
operations attributable to         0.04  (0.47)

Atlantic Power Corporation

Income from discontinued           0.01  0.10
operations, net of tax

Net income (loss) attributable to
Atlantic Power                     0.05  (0.37)

Corporation

Diluted earnings (loss) earnings
per share:

Income (loss) from continuing
operations attributable to         0.04  (0.47)

Atlantic Power Corporation

Income from discontinued           0.01  0.10
operations, net of tax

Net income (loss) attributable to
Atlantic Power                     0.05  (0.37)

Corporation

(1) Includes contributions from Auburndale, Lake and Pasco (the
"Florida Projects") and Path 15, which are designated as assets
held for sale and discontinued operations.

Atlantic Power Corporation

Table 6 – Consolidated Statements of Cash Flows (in millions of
U.S. dollars)

Unaudited
                                         Three months ended March 31,
                                         2013   2012

Cash flows from operating activities:

Net income (loss)                        $7.8   $(39.2)

Adjustments to reconcile to net cash

Depreciation and amortization            49.1   36.5

Reserve related to sale of discontinued  27.5   -
operations

Long-term incentive plan expense         0.3    1.1

Equity in earnings (loss) from           (7.2)  (2.9)
unconsolidated affiliates

Distributions from unconsolidated        8.9    0.3
affiliates

Unrealized foreign exchange (gain) loss  (5.0)  12.9

Change in fair value of derivative       (21.1) 58.1
instruments

Change in deferred income taxes          (4.1)  (17.7)

Change in other operating balances

Accounts receivable                      (4.6)  19.5

Inventory                                0.9    0.8

Prepayments, refundable income taxes and 39.7   (14.9)
other assets

Accounts payable                         (8.0)  6.6

Accruals and other liabilities           (10.0) 5.5

Cash provided by operating activities    74.2   66.6



Cash flows used in investing activities

Change in restricted cash                (18.7) (6.4)

Biomass development costs                -      (0.1)

Construction in progress                 (9.7)  (163.5)

Purchase of property, plant and          (2.2)  (0.7)
equipment

Cash used in investing activities        (30.6) (170.7)



Cash flows provided by (used in)
financing activities

Proceeds from project-level debt         20.8   184.2

Repayment of project-level debt          (2.6)  (2.7)

Offering costs related to tax equity     (0.6)  -

Payments for revolving credit facility   (2.9)  (8.0)
borrowings

Proceeds from revolving credit facility  -      22.8
borrowings

Equity investment from noncontrolling    2.0    -
interest

Deferred financing costs                 -      (10.2)

Dividends paid                           (36.3) (36.0)

Cash (used in) provided by financing     (19.6) 150.1
activities



Net increase in cash and cash            24.0   46.0
equivalents

Less cash at discontinued operations     (5.0)  -

Cash and cash equivalents at beginning   6.5    -
of period at discontinued operations

Cash and cash equivalents at beginning   60.2   60.6
of period

Cash and cash equivalents at end of      $85.7  $106.6
period



Supplemental cash flow information

Interest paid                            $34.0  $18.0

Income taxes paid (refunded), net        $1.4   $0.6

Accruals for construction in progress    $1.6   $3.7
    Regulation G Disclosures

Cash Available for Distribution and Cash Distributions from Projects are not 
measures recognized under GAAP and do not have standardized meanings 
prescribed by GAAP.  Management believes that Cash Available for Distribution 
and Cash Distributions from Projects are relevant supplemental measures of the 
Company's ability to earn and distribute cash returns to investors.  
Reconciliations of Cash Available for Distribution, Payout Ratio and Cash 
Distributions from Projects to cash flows from operating activities are 
provided in Table 9 on page 14 of this release.  Investors are cautioned that 
the Company may calculate these measures in a manner that is different from 
other companies.

Project Adjusted EBITDA is defined as project income (loss) 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 and believes such information is helpful to investors.  A 
reconciliation of Project Adjusted EBITDA to project income (loss) and a 
bridge to Cash Distributions from Projects are provided in Table 7 below and 
Tables 8A and 8B on page 15, respectively.  Investors are cautioned that the 
Company may calculate this measure in a manner that is different from other 
companies.
    Atlantic Power Corporation

Table 7 – Project Adjusted EBITDA by Segment (in millions of U.S.
dollars)

Unaudited
                                   Three months ended March 31,
                                   2013   2012

Project Adjusted EBITDA by segment

Northeast                          $45.9  42.4

Southeast ((1))                    2.1    2.1

Northwest                          21.3   13.4

Southwest ((2))                    16.0   12.1

Un-allocated corporate             (4.7)  (3.4)

Total                              80.6   66.6



Reconciliation to project income

Depreciation and amortization      52.4   39.9

Interest expense, net              9.5    6.0

Change in the fair value of        (11.5) 57.5
derivative instruments

Other (income) expense             (0.9)  0.2

Project income (loss)              31.1   (37.0)

(1) Excludes the Florida Projects, which are designated as
assets held for sale and discontinued operations.
(2) Excludes Path 15, which is designated as an asset held for
sale and discontinued operations.

Note: Table 7 presents Project Adjusted EBITDA, which 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 a similar measure presented by
other companies.
     

Atlantic Power Corporation

Table 8A – Cash Distributions from Projects (by Segment, in millions of
U.S. dollars)

Three months ended March 31, 2013 (Unaudited)
                                                      Other,
             Project  Repayment Interest              including Cash


         Adjusted of                 Capital                Distributions
Unaudited             long-term expense, expenditures changes 


             EBITDA   debt                            in        from Projects
                                net                   working
                                                      capital

Segment

Northeast

Consolidated $34.5    $(0.6)    $(3.4)   $(0.3)       $(1.2)    $29.0

Equity       11.4     (3.5)     (1.0)    -            4.7       11.6
method

Total        45.9     (4.1)     (4.4)    (0.3)        3.5       40.6

Southeast

Consolidated -        -         -        -            -         -

Equity       2.1      -         -        0.2          (2.3)     -
method

Total        2.1      -         -        0.2          (2.3)     -

Northwest

Consolidated 15.5     -         (3.6)    (1.8)        (5.5)     4.6

Equity       5.8      (0.7)     (1.1)    (0.1)        1.2       5.1
method

Total        21.3     (0.7)     (4.7)    (1.9)        (4.3)     9.7

Southwest

Consolidated 14.9     -         (0.2)    (0.1)        (10.6)    4.0

Equity       1.1      (0.8)     (0.2)    -            (0.1)     -
method

Total        16.0     (0.8)     (0.4)    (0.1)        (10.7)    4.0

Total        64.9     (0.6)     (7.2)    (2.2)        (17.3)    37.6
consolidated

Total equity 20.4     (5.0)     (2.3)    0.1          3.5       16.7
method

Un-allocated (4.7)    -         -        -            4.7       -
corporate

Total        $80.6    $(5.6)    $(9.5)   $(2.1)       $(9.1)    $54.3

Note: Table 8A presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not have any
standardized meanings prescribed by GAAP; therefore, these measures may not
be comparable to similar measures presented by other companies.

Atlantic Power Corporation

Table 8B – Cash Distributions from Projects (by Segment, in millions of
U.S. dollars)

Three months ended March 31, 2012 (Unaudited)
                                                      Other,
             Project  Repayment Interest              including Cash
                      of                 Capital
             Adjusted           expense,              changes   Distributions
                      long-term          expenditures in
             EBITDA   debt      net                             from Projects
                                                      working
                                                      capital

Segment

Northeast

Consolidated $32.0    $(0.6)    $(3.4)   $-           $2.8      $30.8

Equity       10.4     (3.4)     (1.4)    -            (6.0)     (0.4)
method

Total        42.4     (4.0)     (4.8)    -            (3.2)     30.4

Southeast

Consolidated -        -         -        -            -         -

Equity       2.1      -         -        -            (2.1)     -
method

Total        2.1      -         -        -            (2.1)     -

Northwest

Consolidated 8.5      -         (0.3)    -            (0.9)     7.3

Equity       4.9      (0.5)     (0.8)    -            (0.2)     3.4
method

Total        13.4     (0.5)     (1.1)    -            (1.1)     10.7

Southwest

Consolidated 13.0     -         -        (0.3)        (0.1)     12.6

Equity       (0.9)    (1.0)     (0.1)    (0.1)        2.1       -
method

Total        12.1     (1.0)     (0.1)    (0.4)        2.0       12.6

Total        53.5     (0.6)     (3.7)    (0.3)        1.8       50.7
consolidated

Total equity 16.5     (4.9)     (2.3)    (0.1)        (6.2)     3.0
method

Un-allocated (3.4)    -         -        -            3.4       -
corporate

Total        $66.6    $(5.5)    $(6.0)   $(0.4)       $(1.0)    $53.7

Note: Table 8B presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not have any
standardized meanings prescribed by GAAP; therefore, these measures may not
be comparable to similar measures presented by other companies.
    Atlantic Power Corporation

Table 9 – Cash Available for Distribution (in millions of U.S.
dollars)

Unaudited
                                     Three months ended March 31,
                                     2013   2012

Cash Distributions from Projects     $54.3  $53.7

Repayment of long-term debt          (5.6)  (5.5)

Interest expense, net                (9.5)  (6.0)

Capital expenditures                 (2.1)  (0.4)

Other, including changes in working  (9.1)  (1.0)
capital

Project Adjusted EBITDA              $80.6  $66.6

Depreciation and amortization        52.4   39.9

Interest expense, net                9.5    6.0

Change in the fair value of          (11.5) 57.5
derivative instruments

Other (income) expense               (0.9)  0.2

Project income (loss)                $31.1  $(37.0)

Administrative and other expenses    26.7   30.7
(income)

Income tax expense (benefit)         (2.5)  (16.9)

Income from discontinued operations, 0.9    11.6
net of tax

Net income (loss)                    $7.8   $(39.2)

Adjustments to reconcile to net cash
provided by                          48.4   88.3

operating activities

Change in other operating balances   18.0   17.5

Cash flows from operating activities $74.2  $66.6

Project-level debt repayments        (2.6)  (2.7)

Purchases of property, plant and     (2.2)  (0.8)
equipment

Dividends on preferred shares of a   (3.2)  (3.2)
subsidiary company

Cash Available for Distribution      $66.2  $59.9

Total cash dividends declared to     25.2   32.8
shareholders

Payout Ratio                         38%    55%

Note: Table 9 presents Cash Distributions from Projects, Project
Adjusted EBITDA, Cash Available for Distribution and Payout
Ratio, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore,
these measures may not be comparable to similar measures
presented by other companies.
    Atlantic Power Corporation

Table 10 – Project Adjusted EBITDA by Project (for Selected
Projects)

(in millions of U.S. dollars)

Unaudited
                                          Three months ended March 31,
                                          2013  2012

Project Adjusted EBITDA by
segment

Northeast                   Accounting

Cadillac                    Consolidated  $2.2  $1.8

Curtis Palmer               Consolidated  7.2   9.0

Nipigon                     Consolidated  6.4   4.7

North Bay                   Consolidated  5.3   4.7

Tunis                       Consolidated  4.8   5.4

Other (3 projects)          Consolidated  8.6   6.4

Chambers                    Equity method 5.7   5.9

Selkirk                     Equity method 5.7   4.5

Total                                     45.9  42.4

Southeast

Piedmont                    Consolidated  -     -

Orlando                     Equity method 2.1   2.1

Total                                     2.1   2.1

Northwest

Meadow Creek                Consolidated  3.1   -

Rockland                    Consolidated  2.5   0.8

Williams Lake               Consolidated  8.7   6.4

Other (3 projects)          Consolidated  1.2   1.3

Other (3 projects) ((1))    Equity method 5.8   4.9

Total                                     21.3  13.4

Southwest

Canadian Hills              Consolidated  6.7   -

Manchief                    Consolidated  3.9   4.4

Other (8 projects)          Consolidated  4.3   8.6

Other (2 projects)          Equity method 1.1   (0.9)

Total                                     16.0  12.1

Totals

Consolidated projects                     64.9  53.5

Equity method projects                    20.4  16.5

Un-allocated corporate                    (4.7) (3.4)

Total Project Adjusted                    $80.6 $66.6
EBITDA



Reconciliation to project
income (loss)

Depreciation and              $52.4             $39.9
amortization

Interest expense, net         9.5               6.0

Change in the fair value
of derivative                 (11.5)            57.5

instruments

Other (income) expense        (0.9)             0.2

Project income (loss)         $31.1             $(37.0)

(1) Goshen North is included in 2013 results, but is excluded from
2012 results as it was acquired in December 2012; therefore, 2012
results have only two equity method projects in the Northwest segment.

Note: Table 10 presents Project Adjusted EBITDA, which 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 a similar measure presented by other companies. The
Company has not reconciled non-GAAP financial measures relating to
individual projects to the directly comparable GAAP measures due to
the difficulty in making the relevant adjustments on an individual
project basis.

http://www.atlanticpower.com

http://photos.prnewswire.com/prnh/20110809/NE49346LOGO

SOURCE: Atlantic Power Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2013/08/c5013.html

CO: Atlantic Power Corporation
ST: Massachusetts
NI: UTI OIL ERN EST ERN CONF 

-0- May/08/2013 21:26 GMT


 
Press spacebar to pause and continue. Press esc to stop.