Algonquin Power & Utilities Corp. Announces Second Quarter 2013 Financial
OAKVILLE, ON, Aug. 14, 2013
OAKVILLE, ON, Aug. 14, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp.
(TSX: AQN), today announced financial results for the second quarter ended
June 30, 2013.
Second Quarter Financial Highlights:
*For the second quarter of 2013, revenue was $148.8 million as compared to
$58.7 million in the second quarter of 2012. The increase in revenue over
the same period in 2012 is primarily the result of regulated utility
acquisitions including the Columbus/Gainsville Gas System, Midwest Gas
Systems, EnergyNorth Gas System, Pine Bluff Water System, and Granite
State Electric System, as well as the acquisitions of the U.S. Wind
Facilities. For the first six months of 2013, APUC generated revenue of
$342.1 million as compared to $116.9 million in the first six months of
*Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
("Adjusted EBITDA") was $56.5 million in the second quarter of 2013 as
compared to $22.2 million in the second quarter of 2012. The increase in
Adjusted EBITDA is primarily related to additional revenues from the
aforementioned acquisitions, and increased demand and higher rates at the
Calpeco Electric System. APUC generated adjusted EBITDA of $118.9 million
for the first six months of 2013 as compared to $43.4 million for the
first six months of 2012.
*APUC reported adjusted net earnings of $15.4 million or $0.08 per share in
the second quarter of 2013 as compared to adjusted net earnings of $6.5
million or $0.04 per share in the second quarter of 2012. For the first
six months of 2013, APUC reported adjusted net earnings of $34.7 million
or $0.17 per share as compared to $11.8 million or $0.08 per share for the
first six months of 2012.
Second Quarter Corporate Highlights:
*APUC has completed several acquisitions and has announced a number of
initiatives that have raised the growth profile for APUC's earnings and
cash flows. Growth arising from the acquisition of several regulated
utilities in the U.S. serving over 290,000 customers together with the
acquisition of 509.5 MW of wind farms also in the U.S. has resulted in
increased earnings and cash flows in the business.
*During the quarter, APUC announced a 9.7% increase in the dividend to
shareholders, bringing the total annual dividend to $0.34 per common
share, paid quarterly at the rate of $0.085 per common share. The increase
is consistent with APUC's strategy of delivering total shareholder return
comprised of attractive dividend yield and capital appreciation founded on
increased earnings and cash flows.
*Earlier in the year, an APUC subsidiary entered into an agreement to sell
ten small U.S. hydroelectric generating facilities that were no longer
considered strategic to the ongoing operations of the Company for gross
proceeds of U.S. $27 million. During the quarter, APCo closed the sale of
nine of the ten facilities with the sale of the tenth facility expected to
close in Q4, 2013.
Second Quarter Growth Highlights:
*On April 1, an APUC subsidiary completed the acquisition of certain
regulated natural gas distribution utility systems located in Columbus and
Gainesville, Georgia serving approximately 64,000 gas distribution utility
customers. Total purchase price for the utility was approximately U.S.
$140.7 million plus working capital and closing adjustments for total
consideration of U.S. $153.0 million.
*During the quarter, APUC commenced construction of the Cornwall Solar
Project, which is a 10 MWac solar project located near Cornwall, Ontario.
The project has been granted an Ontario FIT contract by the OPA, with a 20
year term and a rate of $443/MW-hr, resulting in expected annual
generation of 13,912 MW-hrs and initial annual revenues of approximately
$6.2 million. Construction is expected to be completed late in the fourth
quarter of this year with total capital cost targeted at approximately $45
"We continue to see year over year positive contributions from our recent
growth in both the power and utilities businesses", commented Chief Executive
Officer Ian Robertson. "The second quarter results show that our strategy has
resulted in significant contribution to earnings and cash flows, affirming our
growth trajectory. We are well positioned to build out our power development
projects and secure accretive utility acquisitions, while maximizing the value
of organic investment opportunities in the existing portfolio. These
activities are the basis of the upward growth profile of our earnings and cash
APUC's supplemental information is available on the web site at
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Thursday, August 15, 2013, hosted by Chief Executive Officer, Ian Robertson
and Chief Financial Officer, David Bronicheski.
Conference call details are as follows:
Date: Thursday, August 15, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4860 or Local
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525 or
416-640-1917 access code 4628643# from August 15, 2013 until August 29, 2013.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified$3.0
billionportfolio of regulated and non-regulated utilities inNorth America.
The company's regulated utility business is committed to provide water,
electricity and natural gas utility services to over 470,000 customers through
a nationwide portfolio of regulated generation, transmission and distribution
utility systems. The company's non-regulated electric generation subsidiary
owns or has interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power &
Utilities Corp. delivers continuing growth through an expanding pipeline of
renewable power and clean energy projects, organic growth within its regulated
utilities and the pursuit of accretive acquisition opportunities. Common
shares and preferred shares are traded on the Toronto Stock Exchange under the
symbols AQN and AQN.PR.A respectively. Visit Algonquin Power and Utilities
atwww.AlgonquinPowerandUtilities.com and follow us on Twitter@AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information that is
forward-looking within the meaning of certain securities laws, including
information and statements regarding prospective results of operations,
financial position or cash flows. These statements are based on factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they require
making assumptions and involve inherent risks and uncertainties. APUC cautions
that although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the possibility that
actual results may differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set out in the
management's discussion and analysis section of APUC's most recent annual
report, quarterly report, and APUC's Annual Information Form. Given these
risks, undue reliance should not be placed on these forward-looking
statements, which apply only as of their dates. Other than as specifically
required by law, APUC undertakes no obligation to update any forward-looking
statements or information to reflect new information, subsequent or otherwise.
SOURCE Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500
Press spacebar to pause and continue. Press esc to stop.