Algonquin Power & Utilities Corp. Announces Third Quarter 2013 Financial
OAKVILLE, ON, Nov. 14, 2013
OAKVILLE, ON, Nov. 14, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp.
(TSX: AQN), today announced financial results for the third quarter ended
September 30, 2013.
Third Quarter Financial Highlights:
*For the third quarter of 2013, revenue was $127.9 million compared to
$93.0 million in the third 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 nine months of 2013, APUC generated revenue of
$470.0 million compared to $209.9 million in the first nine months of
*Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
("Adjusted EBITDA") was $40.5 million in the third quarter of 2013
compared to $20.8 million in the third quarter of 2012. The increase in
Adjusted EBITDA is primarily related to additional operating income
contributed by the aforementioned acquisitions, and increased demand and
higher rates at the electric distribution utility in California. APUC
generated adjusted EBITDA of $159.4 million for the first nine months of
2013 compared to $63.6 million for the first nine months of 2012.
*APUC reported adjusted net earnings of $6.9 million or $0.03 per share in
the third quarter of 2013 compared to adjusted net earnings of $1.1
million or $0.01 per share in the third quarter of 2012. For the first
nine months of 2013, APUC reported adjusted net earnings of $41.7 million
or $0.19 per share compared to $12.2 million or $0.08 per share for the
first nine months of 2012.
Third Quarter Growth Highlights:
*During 2013, 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. 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. over the course of the year has
resulted in increased earnings and cash flows in the business.
*During the quarter, APUC's regulated utility subsidiary received approval
to implement interim rate tariffs at its New Hampshire based electric
distribution utility, which provide an annualized increase in revenues of
U.S. $6.5 million and accelerated annual storm cost recovery of a $1
million. The interim rate increase is reflected in the third quarter
results with net revenue for the utility increasing 30% compared to 2012.
*During the quarter, APUC continued 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 14.4 GW-hrs. Construction is expected to be completed early
in 2014 with total capital cost targeted at approximately $45 million.
Third Quarter Corporate Highlights:
*Subsequent to the end of the quarter, Standard & Poor's Ratings Services
raised its long-term corporate credit rating on APUC and its subsidiaries
to 'BBB' from 'BBB-'. According to Standard & Poor's, the upgrade reflects
a significant increase in regulated cash flow owing to a number of
acquisitions in the past 18 months, as well as an expectation that
adjusted funds from operations-to-debt levels will continue to increase in
the near-to-medium term.
*On July 31, 2013, APUC's regulated utility subsidiary issued U.S. $125
million of debt through a private placement in the U.S. The financing is
the third series of notes issued pursuant to a master indenture. The
notes are senior unsecured with an average life maturity of approximately
ten years and a weighted average coupon of 3.81%.The proceeds of the
private placement financing were used to repay the U.S. $100 million short
term acquisition facility, reduce the drawn amount on Liberty's revolving
credit facility and for general corporate purposes.
*On September 30, 2013, APUC's regulated utility subsidiary increased the
credit available under the senior unsecured revolving credit facility to
U.S. $200 million from U.S. $100 million, and the tenor has been increased
from three years to five years. The larger credit facility provides
additional liquidity as APUC executes on its near term organic growth
opportunities including targeted growth in assets for regulatory purposes
of approximately $100 million in each of the next three years representing
a growth rate of approximately 5% annually.
"APUC's third quarter results continue to reflect the successful integration
of our growth initiatives over the past year with significant increases in
revenue, earnings and cash flow", commented Chief Executive Officer Ian
Robertson. "We are pleased that, over the course of 2013, we will have
successfully deployed over half a billion dollars of capital in accretive
investments that will position APUC to deliver strong growth in earnings and
dividends over the coming years."
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
Friday, November 15, 2013, hosted by Chief Executive Officer, Ian Robertson
and Chief Financial Officer, David Bronicheski.
Conference call details:
Date: Friday, November 15, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4859 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 4644142# from November 15, 2013 until November 29,
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified$3.2
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.comand 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
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