TransAlta Renewables Reports Third Quarter 2013 Results

TransAlta Renewables Reports Third Quarter 2013 Results 
CALGARY, ALBERTA -- (Marketwired) -- 10/30/13 -- TransAlta Renewables
Inc. (the "Company") (TSX:RNW) today reported Comparable EBITDA(1) of
$29.1 million for the third quarter. Comparable net earnings in the
third quarter were $4.0 million, up from $2.8 million in the same
period last year. Reported net earnings were $1.2 million in the
quarter. The Company also declared a monthly dividend of $0.0625 per
share for holders of record on December 2, 2013 and January 2, 2014
and payable December 31, 2013 and January 31, 2014 respectively.  
On October 21, 2013, the Company announced it will acquire the
economic interest in a 144 megawatt (MW) wind farm in Wyoming for
approximately US$102 million from an affiliate of NextEra Energy
Resources, LLC. The wind farm is fully operational and contracted
under a long-term power purchase agreement until 2028 with an
investment grade counterparty. The acquisition is subject to
regulatory approvals and is expected to close by the end of December
2013. The acquisition is expected to be accretive to the Company's
cash available for distribution per share by approximately 2 - 3%.  
"TransAlta Corporation, the majority shareholder, created TransAlta
Renewables as a vehicle to continue to grow in the renewables power
sector," said Brett Gellner, President of the Company. "The
acquisition of the wind farm in Wyoming demonstrates our commitment
to grow and create value for shareholders, and establishes our first
wind farm in the United States. The acquisition will also further
diversify the company in terms of geography and number of assets."  
Historical financial information is not directly comparable to
current results due to the implementation of certain commercial
arrangements between the Company and TransAlta Corporation that took
effect upon closing of the Company's initial public offering ("IPO")
on August 9, 2013, including the entering into of firm priced power
purchase agreements in regards to generating facilities whose power
was previously sold on a merchant basis. Prior to the IPO, these
commercial arrangements did not exist and the Company's assets were
held directly or indirectly by TransAlta Corporation.  
The financial information in this news release represents carve
 out
data derived from the accounting records of TransAlta Corporation up
to and including August 8, 2013, in addition to the Company's actual
results since August 9, 2013. Financial information for 2012 are also
based on carve out data. More details in regards to the basis of
measurement can be found in the final prospectus of the Company dated
July 31, 2013.  


 
(1)   EBITDA refers to Earnings before interest, taxes, depreciation and    
      amortization and FFO refers to Funds from Operations and both measures
      are not defined under International Financial Reporting Standards     
      ("IFRS"). Presenting these measures from period to period provides    
      supplemental information to help management and shareholders evaluate 
      earnings' trends in comparison with prior periods' results. Refer to  
      the Non-IFRS Measures section of the Management's Discussion and      
      Analysis ("MD&A") for further explanation.                            

 
Summary Results 
Q3 2013 compared to Q3 2012  


 
--  Comparable EBITDA of $29.1 million up from $28.8 million for the same
    period last year 
--  FFO(1) of $21.9 million up from $21.3 million for the same period last
    year 
--  Production of 543 GWh, up from 524 GWh for the same period last year 

 
YTD 2013 compared to YTD 2012 


 
--  Comparable EBITDA of $130.7 million up from $107.6 million for the same
    period last year 
--  FFO of $108.9 million up from $86.8 million for the same period last
    year 
--  Production of 2,043 GWh, up from 2,030 GWh for the same period last year

 
The following table depicts key financial results and statistical
operating data: 
Third Quarter 2013 Highlights 


 
----------------------------------------------------------------------------
                                   3 months   3 months   9 months   9 months
                                      ended      ended      ended      ended
In $CAD thousands, unless         September  September  September  September
 otherwise stated                  30, 2013   30, 2012   30, 2013   30, 2012
----------------------------------------------------------------------------
Production (GWh)                        543        524      2,043      2,030
----------------------------------------------------------------------------
Revenue                              43,535     41,896    175,392    152,473
----------------------------------------------------------------------------
Gross margin(2)                      41,007     39,234    165,538    142,820
----------------------------------------------------------------------------
Operating income(2)                   9,105     10,104     71,176     39,055
----------------------------------------------------------------------------
Net earnings attributable to                                                
 common shareholders                  1,207      2,812     34,723     13,569
----------------------------------------------------------------------------
Comparable earnings(3)                3,954      2,812     37,470     20,706
----------------------------------------------------------------------------
Basic and diluted earnings per                                              
 common share                          0.01       0.02       0.30       0.12
----------------------------------------------------------------------------
Comparable earnings per share(3)       0.03       0.02       0.33       0.18
----------------------------------------------------------------------------
Comparable EBITDA(3)                 29,092     28,765    130,669    107,638
----------------------------------------------------------------------------
FFO(3)                               21,935     21,317    108,890     86.768
----------------------------------------------------------------------------
FFO per share(3)                       0.19       0.19       0.95       0.76
----------------------------------------------------------------------------
Cash flow from operations            25,172     23,286    124,138     80,343
----------------------------------------------------------------------------
(2)   Gross margin and operating income are Additional IFRS measures. Refer 
      to the Additional IFRS measures section of the MD&A.                  
(3)   Comparable earnings, comparable earnings per share, comparable EBITDA,
      FFO, and FFO per share are not defined under IFRS. Refer to the Non-  
      IFRS financial measures section of the MD&A for an explanation and,   
      where applicable, reconciliations to net earnings (loss) attributable 
      to common shareholders, operating income (loss) and cash flow from    
      operating activities.                                                 

 
The complete report for the quarter, including MD&A and unaudited
interim financial statements, as well as our presentation is
available on the Investors section of our website:
www.transaltarenewables.com.  
Note: All financial figures are in Canadian dollars unless noted
otherwise. 
About TransAlta Renewables Inc. 
TransAlta Renewables Inc. owns a portfolio of renewable power
generation facilities. TransAlta Renewables' objective is to (i)
create stable, consistent returns for investors through the ownership
of contracted renewable power generation assets that provide stable
cash flow through long-term power purchase agreements with
creditworthy counterparties, including TransAlta; (ii) pursue and
capitalize on strategic growth opportunities in the renewable power
generation sector; and (iii) pay out a portion of cash available for
distribution to the shareholders of TransAlta Renewables on a monthly
basis. TransAlta Renewables currently holds 28 wind and hydroelectric
power generation facilities, not including the Wyoming wind farm,
having an aggregate installed generating capacity of 1,234 MW, in
which TransAlta Renewables has a net ownership interest of
approximately 1,112 MW. TransAlta Renewables' power generating
capacity is among the largest of any publicly-traded renewable
independent power producer ("IPP") in Canada, with more wind power
generating capacity than any other Canadian publicly-traded IPP.
TransAlta Renewables' strategy is focused on the efficient operation
of its portfolio of renewable power generation assets and expanding
its asset base through the acquisition of additional renewable power
generation facilities in operation or under construction. 
Cautionary Statement Regarding Forward-Looking Information 
This news release may contain forward-looking statements, including
statements regarding the business and anticipated financial
performance of the Company. Forward-looking statements in this news
release include statements relating to the closing of the acquisition
of the Wyoming wind farm, the accretive nature of the acquisition and
the ability of the Company to receive the economic interest in the
Wyoming wind farm. These forward-looking statements are not
historical facts but reflect the Company's current expectations
concerning future plans, actions and results. These statements are
subject to a number of risks and uncertainties that could cause
actual plans, actions and results to differ materially from current
expectations including, but not limited to, the ability to
successfully obtain regulatory approvals; changes in tax, regulatory,
environmental, and other laws and regulations; competitive factors in
the renewable power industry; operational breakdowns, failures, or
other disruption; changes in economic and market conditions, and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time
to time and as also set forth in the final prospectus of the Company
dated July 31, 2013. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect the
Company's expectations only as of the date of this news release. The
Company disclaims any intention or obligation to update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.  
Cautionary Statement Regarding use of non-IFRS Accounting Measures 
This news release contains references to EBITDA and Funds from
operations which are not generally accepted accounting measure under
IFRS and therefore may differ from definitions of EBITDA and Funds
from operations used by other entities. We believe that operating
EBITDA and Funds from operations are useful supplemental measures
that may assist investors in assessing the financial performance and
the cash anticipated to be generated by our operating portfolio.
Neither EBITDA nor Funds from operations should be considered as the
sole measure of our performance and should not be considered in
isolation from, or as a substitute for, analysis of our financial
statements prepared in accordance with IFRS. We have also presented
these same measurements on a pro forma basis. 
Note: All financial figures are in Canadian dollars unless noted
otherwise.
Contacts:
Investor inquiries:
TransAlta Renewables Inc.
Brent Ward
Director, Corporate Finance and Investor Relations
1-800-387-3598 in Canada and U.S.
investor_relations@transalta.com 
Media inquiries:
TransAlta Renewables Inc.
Stacey Hatcher
Senior Corporate Relations Advisor
Cell: 587-216-2242 or Toll-free media number: 1-855-255-9184
Alternate local number: 403-267-2540
 
 
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