Atlantic Power Corporation Releases Fourth Quarter and Year End 2013 Results

 Atlantic Power Corporation Releases Fourth Quarter and Year End 2013 Results

PR Newswire

BOSTON, Feb. 27, 2014

BOSTON, Feb.27, 2014 /PRNewswire/ --Atlantic Power Corporation (NYSE: AT)
(TSX: ATP) ("Atlantic Power" or the "Company") today released its results for
the three months and year ended December 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. Going forward, the Company expects to provide
guidance and updates regarding Project Adjusted EBITDA and Free Cash Flow,
which are non-GAAP measures, along with reconciliations to project income and
cash flows from operating activities, respectively, the most directly
comparable GAAP measures.

Full Year 2013 Financial Highlights

  oProject income  increased $93.7 million to $64.3 million in 2013 compared
    to a project loss of $(29.4) million in 2012
  oCash flows from operating activities, including discontinued operations,
    decreased $14.7 million from 2012 to $152.4 million in 2013
  oProject Adjusted EBITDA increased $42.9 million from 2012 to $270.5
    million in 2013, slightly above the midpoint of the Company's revised
    guidance range
  oCash Available for Distribution, including discontinued operations,
    decreased $22.8 million from 2012 to $108.8 million in 2013, above the
    upper end of the Company's guidance range

Recent Financing Developments

  oMade significant progress in achieving financial goals of addressing
    near-term debt maturities, gaining additional financial flexibility and
    reducing debt over time

       oClosed new $210 million senior secured revolving credit facility
         maturing in 2018, which replaced the existing $150 million revolver
         maturing in March 2015
       oClosed new $600 million senior secured term loan maturing in 2021;
         proceeds applied to redeem $415 million of debt with maturities in
         2014, 2015 and 2017
       oAll-in interest rate on new facilities of 4.75% is favorable to the
         weighted average rate on debt redeemed (5.9%)

  oConverted Piedmont's construction loan to a $68.5 million term loan
    maturing in August 2018

2014 Guidance

  oProject Adjusted EBITDA in the range of $280 to $305 million
  oFree Cash Flow in the range of $0 to $25 million, after discretionary
    capex of approximately $18 million, projected repayment of project debt
    and amortization of the new term loan totaling approximately $79 million

"Our projects performed well and our financial results met or exceeded our
guidance for the year. In 2014, we expect growth of 8% in Project Adjusted
EBITDA, including an initial contribution from investments made last year to
optimize the performance of our projects," said Barry Welch, President and CEO
of Atlantic Power. "We are ramping up these efforts and have now committed to
$27 million of organic growth investments through 2014, which we expect will
produce a run-rate Project Adjusted EBITDA contribution of at least $8 million
in 2015."

Mr. Welch continued, "We were very pleased with the successful execution of
our refinancing, which is an important step in increasing our financial
flexibility and liquidity and addressing our near-term debt maturities. In
addition, we plan to redeem our C$45 million convertible debenture due in
October with cash on hand and, subject to market and other conditions, may
reduce up to $150 million of additional debt with the excess proceeds from the
financing and a portion of cash on hand. Additionally, we will be evaluating
a range of options, including asset sales or joint ventures to raise capital
in a cost-effective manner for growth or additional debt reduction, as well as
broader strategic options to improve shareholder value. Our dividend level
will be reviewed as part of this analysis."



Atlantic Power Corporation
Table 1 – Selected Results
(in millions of U.S. dollars, except as otherwise stated)
                                        Years ended December 31,
Unaudited                               2013                2012
Excluding results from discontinued
operations ^(1)
Project revenue                         $551.7              $440.4
Project income (loss)                   64.3                (29.4)
Project Adjusted EBITDA                 270.5               227.6
Cash Distributions from Projects        225.6               199.8
Aggregate power generation (thousands   8,436.0             5,906.2
of Net MWh)
Weighted average availability           95%                 95%
Including results from discontinued
operations
Cash flows from operating activities    $152.4              $167.1
Cash Available for Distribution         108.8               131.6
Total cash dividends declared to        58.0                131.8
shareholders
Payout Ratio                            53%                 100%
^(1) The Path 15 transmission line ("Path 15"), Auburndale Power Partners,
L.P. ("Auburndale"), Lake CoGen, Ltd. ("Lake") and Pasco Cogen, Ltd. ("Pasco")
(collectively, the "Sold Projects") and Rollcast were sold in April 2013 and
November 2013, respectively, 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 years ended
December 31, 2013 and 2012, which means that the results from these
discontinued operations are excluded from these figures. The results for
discontinued operations have also been excluded from the aggregate power
generation and weighted average availability statistics. Under GAAP, the cash
flows attributable to the Sold Projects and Rollcast are included in cash
flows 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
Sold Projects and Rollcast.
Note: 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 11 for reconciliations of these non-GAAP
measures to GAAP measures.



Financial Review for the Year Ended December 31, 2013

GAAP Measures

Project income  increased by $93.7 million to $64.3 million in 2013 compared
to a project loss of $(29.4) million in 2012.The increase in project income
relates primarily to a $30.4 million gain on the sale of the Company's 17%
interest in the Gregory project in August 2013, additional project income from
an increased interest in Rockland and new projects added in December 2012
(particularly Canadian Hills and Meadow Creek) in the Company's Wind segment
and mark-to-market adjustments to interest rate swaps and gas purchase
agreements for three of the Company's gas-fired projects in Ontario in the
Company's East segment. These increases were partially offset by $(34.9)
million of goodwill impairments.Generally, reported project income can
fluctuate significantly due to impacts from non-cash mark-to-market fair value
of derivatives adjustments.

Cash flows from operating activities, which include cash flows from
discontinued operations, decreased by $14.7 million to $152.4 million in 2013
compared to $167.1 million in 2012. Factors positively contributing to annual
results include cash flows from new projects added in December 2012 (see
project income discussion above), and positive changes in working capital.
These factors were more than offset by reduced cash flow contributions from
assets that were divested in April 2013.

Non-GAAP Measures

Project Adjusted EBITDA, which includes earnings from the Company's equity
method investments but excludes the results of discontinued operations,
increased by $42.9 million to $270.5 million for 2013 compared to $227.6
million for 2012. The increase is primarily due to contributions from new
projects added in December 2012 and April 2013, which include $25.6 million
from Canadian Hills, $14.0 million from Meadow Creek, and a modest
contribution from Piedmont. Rockland contributed $6.8 million more in 2013
than in 2012, which is attributable to the 100% consolidation of the former
equity method project after increasing the Company's ownership from 30% to 50%
as part of the Ridgeline acquisition in December 2012. Several projects in
the Company's East segment also posted higher operating results for the year,
due to a combination of factors including higher generation, higher capacity
revenues and favorable outage comparisons. Two projects in the Company's West
segment experienced a decline in Project Adjusted EBITDA resulting from higher
maintenance costs due to scheduled outages and decreased energy revenues
caused by low water levels and contractual price decreases. 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, which excludes cash distributions from
discontinued operations, increased by $25.8 million to $225.6 million in 2013,
compared to $199.8 million in 2012. The increase in Cash Distributions from
Projects for the year is primarily due to distributions from Canadian Hills
and Meadow Creek, both of which were added in December 2012. Results were
also helped by increased distributions from the Company's East segment
including projects in Ontario, which benefited from higher waste heat, as well
as cash distributions made to the Company in 2013 by the Chambers project. In
2012, distributions from the Chambers project were restricted from being made
due to project holding company debt requirements. These increased
distributions were partly offset by decreased distributions in the West
segment in 2013 compared to 2012. 

Cash Available for Distribution begins with cash flows from operating
activities and deducts project-level debt repayments, capital expenditures,
distributions to non-controlling interests (primarily the other 50% owner of
Rockland and the tax equity investors at Canadian Hills) and preferred
dividends. In 2013, Cash Available for Distribution decreased by $22.8
million to $108.8 million from $131.6 million in 2012. The primary reasons
for the decline include a reduction in cash flow contributions from assets
that were divested in April 2013, higher capital expenditures associated with
a repowering of two turbines at the Company's Curtis Palmer project and
initial outlays at Nipigon for a steam generator upgrade planned for 2014.
These reductions were partly offset by positive contributions from new
projects added in December 2012, including Canadian Hills, Meadow Creek and
Rockland, net of distributions to their minority interests, if any; positive
changes in working capital; and, to a lesser extent, lower project-level debt
repayments.

Payout Ratio for the year ended December 31, 2013 was 53% compared to 100% in
2012. The payout ratio for 2013 as compared to the same period in 2012 was
positively impacted by the reduced cash dividends declared to shareholders as
well as the first full year of operating results from Canadian Hills and
Meadow Creek. This was partially offset by lower operating cash flow
contributions from assets that were divested in April 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 11).

Financial Review for the Three Months Ended December 31, 2013

Project income  increased by $13.0 million to $7.2 million for the three
months ended December 31, 2013 compared to a project loss of $(5.8) million in
the year-ago period. The increase in project income relates primarily to a
$24.0 million mark-to-market increase in the fair value of gas purchase
agreements at the North Bay and Kapuskasing projects, partially offset by an
increase in project expenses.

Project Adjusted EBITDA increased by $0.3 million to $57.2 million for the
three months ended December 31, 2013 from $56.9 million for the year-ago
period. Contributions from new projects for this period were $7.3 million
from Canadian Hills, $3.6 million from Meadow Creek and $(1.4) million from
Piedmont. These contributions were mostly offset by decreases from other
projects, including Curtis Palmer (lower water levels) and Tunis (outage due
to extreme cold temperatures in Ontario). The Company has not reconciled
non-GAAP financial measures relating to individual projects to the directly
comparable GAAP measures due the difficulty in making the relevant adjustments
on an individual project basis.

Results of Discontinued Operations

Financial results for the three months and year ended December 31, 2013 and
December 31, 2012 are affected by the classification of the Company's
interests in its divested assets as discontinued operations; accordingly, the
revenues, project income, Project Adjusted EBITDA and Cash Distributions from
Projects classified as discontinued operations are excluded from continuing
operations results. The results of discontinued operations have been
separately stated in the Consolidated Statements of Operations as "Net income
(loss) from discontinued operations, net of tax".

Under GAAP, the cash flow attributable to discontinued operations is included
in cash flows 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
discontinued operations.

Project income (loss) from discontinued operations was $(0.2) million and
$(6.2) million for the three months and year ended December 31, 2013, compared
to $(34.8) million and $13.9 million, respectively, for the same periods in
2012.

Project Adjusted EBITDA from discontinued operations was $(0.2) million and
$35.2 million for the three months and year ended December 31, 2013,
respectively, compared to $25.8 million and $104.9 million, respectively, for
the same periods in 2012.

Cash Available for Distribution from discontinued operations for the year
ended December 31, 2013 was $36 million compared to $48 million for the same
period in 2012.

The Delta-Person generating station ("Delta-Person"), which is under a
purchase and sale agreement, and the Gregory project, which was sold in August
2013, are included in the Company's financial results from continuing
operations for the three months and year ended December 31, 2013 and 2012, as
the projects are accounted for under the equity method of accounting.

The Company has not reconciled non-GAAP financial measures relating to
discontinued operations to the directly comparable GAAP measures due to the
difficulty in making the relevant adjustments on an individual project basis.

Supplementary Financial Tables

For further information, attached to this news release is a:

  oSummary of Project Adjusted EBITDA by segment for the three months ended
    December 31, 2013 and 2012 and the years ended December 31, 2013, 2012 and
    2011 (Table 9) with a reconciliation to Project income (loss);
  oBridge from Project Adjusted EBITDA to Cash Distributions from Projects by
    segment for the year ended December 31, 2013 (Table 10A) and the year
    ended December 31, 2012 (Table 10B);
  oReconciliation of Cash Distributions from Projects and Project Adjusted
    EBITDA to net income (loss) for the years ended December 31, 2013, 2012
    and 2011 (Table 11);
  oReconciliation of Cash Available for Distribution and Payout Ratio to cash
    flows from operating activities for the years ended December 31, 2013,
    2012 and 2011 (Table 11); and
  oSummary 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 years ended December 31, 2013,
    2012 and 2011 (Table 12).

Liquidity and Financing Update

New Term Loan and Revolving Credit Facility

At December 31, 2013, the Company had liquidity of $183.6 million, consisting
of $158.6 million of unrestricted cash and $25 million of borrowing capacity
under its existing senior secured revolving credit facility (the "Prior Credit
Facility").

On February 24, 2014, Atlantic Power Limited Partnership ("APLP") entered into
new senior secured credit facilities (the "Senior Secured Credit Facilities"),
comprised of a $600 million senior secured term loan facility (the "Senior
Secured Term Loan Facility") maturing in February 2021 and a senior secured
revolving credit facility (the "Senior Secured Revolving Credit Facility")
with a capacity of $210 million maturing in February 2018. The Senior Secured
Credit Facilities are secured by the 17 projects at APLP, which were acquired
when the Company purchased Capital Power Income LP in November 2011.

The $210 million Senior Secured Revolving Credit Facility at APLP replaced the
$150 million Prior Credit Facility at Atlantic Power Corporation in place at
December 31, 2013 that would have otherwise matured in March 2015. Borrowings
under the Senior Secured Credit Facilities bear interest at a rate equal to
the Adjusted Eurodollar rate, the Base Rate or the Canadian Prime Rate (as
defined in the credit agreement governing the Senior Secured Credit
Facilities). Currently, the applicable margin for term loans based on the
Adjusted Eurodollar Rate is 3.75%, with an Adjusted Eurodollar Rate floor of
1.00%, or an all-in rate of 4.75%. The Senior Secured Term Loan Facility has
a mandatory amortization of 1% annually. In addition, the loan will be paid
down via a 50% sweep of APLP's cash flow after capex and debt service.

Proceeds from the Senior Secured Term Loan Facility were used to redeem in
whole, at a price equal to par plus accrued interest and applicable make-whole
premiums, the $190 million Curtis Palmer Notes maturing in 2014, the $150
million Series A Notes maturing in 2015 and the $75 million Series B Notes
maturing in 2017 issued by Atlantic Power (US) GP. Key positive
characteristics of this refinancing include:

  oSubstantial reduction in the Company's near-term debt maturities ($415
    million). After the planned redemption of the C$45 million convertible
    debenture maturing in October with cash, the Company will have no
    maturities until March 2017;
  oAttractive all-in interest rate of 4.75%, which is below the cost of the
    redeemed debt ($415 million; weighted average of 5.9%);
  oSubject to market conditions and other factors, that the Company may use
    the remaining proceeds from the Senior Secured Term Loan Facility,
    together with cash on hand, to repurchase or redeem, by means of a tender
    offer or otherwise, up to $150 million aggregate principal amount of the
    Company's high-yield 9.0% notes;
  oMandatory 1% amortization and 50% cash sweep features of the term loan
    result in significant debt repayment through project cash flows by
    maturity and the expected reduction in interest expense over time;
  oBorrowing capacity under the Senior Secured Revolving Credit Facility is
    $210 million less letters of credit outstanding, versus a $25 million cap
    under the Prior Credit Facility, and with no requirement to maintain a $75
    million cash reserve.

The foregoing description of the Senior Secured Credit Facilities is qualified
in its entirety by reference to the Company's Current Report on Form 8-K filed
on February 26, 2014 announcing the execution, closing and funding of the
Senior Secured Credit Facilities and the full text of the credit agreement
governing the Senior Secured Credit Facilities, which the Company filed as
Exhibit 10.1 to its Annual Report on Form 10-K for the year ended December 31,
2013.

The Company expects to be in compliance with the financial maintenance
covenants in the Senior Secured Credit Facilities for at least the next twelve
months.

Due to the aggregate impact of the up-front costs resulting from the
prepayments on the Company's indebtedness described above, the Company is no
longer in compliance with the fixed charge coverage ratio included in the
restricted payments test of the indenture governing its high-yield 9.0% notes.
As a consequence, further dividend payments, which are declared and paid at
the discretion of the Company's board of directors, in the aggregate cannot
exceed the restricted payments "basket" of the greater of $50 million and 2%
of consolidated net assets, as defined, (approximately $61 million at December
31, 2013) until such time that the Company is in compliance with the fixed
charge coverage ratio.

See Table 2 for actual debt outstanding at December 31, 2013, pro forma
adjustments to reflect the refinancing transaction, and projected debt at
year-end 2014, which also reflects initial-year amortization of the term loan,
project-level debt repayments in 2014, the potential repurchase or redemption,
subject to market conditions, by means of a tender offer or otherwise, of up
to $150 million of the Company's high-yield 9.0% notes, and the redemption of
the convertible debentures due in October 2014.



Atlantic Power Corporation
Table 2 – Debt Outstanding, including the Company's share of equity method
project debt (in millions of U.S. dollars)
Unaudited               December 31, 2013  Pro Forma ^(1)  Projected Year End
                                                            ^(2)
Atlantic Power          $865               $865             $673
Corporation
Atlantic Power Limited  612                797              745
Partnership
Non-Recourse
Project-level           399                391              372
(consolidated)
Non-Recourse
Project-level (equity   119                119              108
method)
Total Debt              $1,995             $2,172           $1,898
^(1) Pro forma for the following: pay-down of Piedmont construction debt by
$8.1 million and conversion of remainder to a $68.5 million term loan maturing
in August 2018; issuance of $600 million APLP term loan maturing in February
2021; redemption of $190 million Curtis Palmer debt (Feb 2014); and redemption
of $225 million US GP notes (Feb 2014).

^(2) Accounts for: payment of $42.1 (C$44.8) million convertible debentures
(October 2014); the potential repurchase or redemption, subject to market
conditions, by means of a tender offer or otherwise, of up to $150 million par
value of the high-yield 9% notes; 1% mandatory amortization and 50% cash sweep
on APLP's term loan (expected to be approximately $52.0 million on a pro rata
basis in 2014), the sale of Delta-Person in 2014 ($6.5 million equity method
debt), and project-level debt repayments and other debt payments of $22.6
million ($3.7 million at equity method projects) in 2014.



Liquidity

Letters of credit outstanding at year end 2013 totaled $98 million. As of
February 26, 2014, letters of credit outstanding totaled $144 million. The
increase from year end reflects net changes with various counterparties due to
changes in commodity prices, a $15.8 million letter of credit posted in
conjunction with the debt service reserve required under the new term loan, a
reduction in letters of credit resulting from the Piedmont term loan
conversion (discussed below), and the resolution of discussions with an
existing gas supplier that resulted in the posting of additional collateral in
the form of letters of credit and cash. In March, the Company expects to
reduce its outstanding letters of credit by a total of $16 million, by
reducing letters of credit posted with another counterparty by $10 million and
by reducing the level of letters of credit required to be posted in the
transition from the Prior Credit Facility to the new Senior Secured Revolving
Credit Facility by $6 million.

The Senior Secured Revolving Credit Facility, unlike the Prior Credit
Facility, does not require the company to maintain a $75 million restricted
cash reserve; therefore, unrestricted cash on a pro forma basis increased by
$75 million to $234 million.

Adjusted for the Senior Secured Credit Facilities, the additional contribution
into Piedmont in February (discussed below) and the increased letters of
credit outstanding, on a pro forma basis the Company would have $325 million
of unrestricted cash and total liquidity of $391 million, including $66
million of undrawn availability under the Senior Secured Revolving Credit
Facility.

See Table 3 for actual liquidity at December 31, 2013 and pro forma
adjustments.



Atlantic Power Corporation
Table 3 – Liquidity (in millions of U.S. dollars)
Unaudited                           December 31, 2013       Pro Forma ^(1)
Unrestricted cash (12/31/2013)      $159                    $159
^(2)
Pro forma adjustments
(February 2014):
Release of restricted cash          -                       75
Refinancing proceeds                -                       600
Completed debt redemptions          -                       (415)
Curtis Palmer and US GP Notes
make-whole payments and             -                       (34)
interest payments prior to
redemption
Financing and advisory fees         -                       (46)
Piedmont contribution               -                       (14)
Unrestricted cash (pro forma)       -                       $325
^(2)
Revolver capacity                   150                     210
Letters of credit outstanding       (98)                    (144)^(3)
Unused borrowing capacity           25^(4)                  66
Total Liquidity                     $184                    $391
Cash earmarked for additional                               ~$200
debt reduction in 2014 ^(^5^)
^(1) Pro forma reflects the new $210 million Senior Secured Revolving Credit
Facility and $600 million Senior Secured Term Loan Facility at APLP and
release of $75 million of restricted cash, net cash impact of refinancing
transaction, and additional Piedmont equity contribution.

^(2) Includes $20.5 million project-level cash for working capital needs.

^(3) In March, the Company expects to reduce its outstanding letters of credit
by a total of $16 million, by reducing letters of credit posted with another
counterparty by $10 million and by reducing the level of letters of credit
required to be posted in the transition from the Prior Credit Facility to the
new Senior Secured Revolving Credit Facility by $6 million.

^(4) Limit of $25.0 million under the August 2013 amendment to the Prior
Credit Facility.

^(5) Including redemption of $C44.8 million of convertible debentures at
maturity (ATP.DB, due October 2014), and the potential repurchase or
redemption, subject to market conditions, by means of a tender offer or
otherwise, of up to $150 million par value of high-yield 9% notes, and related
fees and expenses.



Piedmont Term Loan Conversion

As previously reported, Piedmont achieved commercial operation under its PPA
with Georgia Power Company at a declared capacity of 53.5 MW on April19,
2013. Piedmont and its engineering, procurement and construction ("EPC")
contractor, Zachry Industrial,Inc. ("Zachry"), are disputing certain issues
under the EPC agreement including the condition and performance of the
project, during which time Piedmont is withholding the amount still retained
under the EPC agreement; the dispute has entered the arbitration process and
an arbitration hearing has been tentatively scheduled in the latter part of
2014.

On February 14, 2014, the Company completed the conversion of the $76.6
million construction loan at Piedmont to a $68.5 million term loan maturing in
August 2018. To facilitate the conversion, the Company repaid $8.1 million of
the construction loan. The term loan has an all-in interest rate of 5.2%. In
addition, the Company made a $6.1 million equity contribution to the project
which was used to fund various reserves and fees associated with the term loan
conversion.

Due to the delay in and costs associated with achieving commercial operation
and optimizing performance, and the need to build cash reserves at the project
the Company did not receive any distributions from Piedmont in 2013, and does
not expect to receive any in 2014. The Company had previously expected $6 to
$8 million of annual project distributions from Piedmont on a run-rate basis
but now expects distributions to average $4 to $6 million annually after
2014.

2014 Guidance

  oProject Adjusted EBITDA guidance of $280 to $305 million
  oFree Cash Flow guidance in the range of $0 - $25 million

Project Adjusted EBITDA

The Company provided guidance for 2014 Project Adjusted EBITDA in the range of
$280 to $305 million, an increase of $22 million based on the midpoint of the
range compared to 2013 actual results of $270.5 million. Key drivers of the
increase include a full year of operations and improved performance at
Piedmont, a more favorable PPA and gas supply agreement at Orlando, and an
expected increase in results from the Company's Meadow Creek and hydro
projects due to assumed normal generation levels, where these were mostly
below normal in 2013. These positive factors are partly offset by the
expiration of the Selkirk PPA and steam contracts and lower energy prices for
the portion of Selkirk that is already merchant as well as the sale or closure
of three projects that contributed to Project Adjusted EBITDA in 2013 but will
not be material contributors in 2014 (Greeley, Gregory and Delta-Person).

Project Adjusted EBITDA for APLP is expected to be in the range of $165 to
$175 million.

Free Cash Flow

Free Cash Flow is defined as cash flows from operating activities less capex,
including discretionary optimization initiatives; project-level debt
repayments, including amortization of the new term loan; and distributions to
non-controlling interests, including preferred share dividends. Free Cash
Flow is comparable to Cash Available for Distribution, the Company's previous
non-GAAP guidance metric. Free Cash Flow would be available for additional
debt reduction, internal or external growth, or distributions to shareholders,
depending on the amount of Free Cash Flow and the decision of management,
together with the board, on the allocation of such Free Cash Flow.

The Company provided 2014 Free Cash Flow guidance of $0 to $25 million,
excluding approximately $80 million in prepayment and other expenses
associated with the Company's recent refinancing transaction. This figure
also excludes the $8.1 million repayment of Piedmont construction debt made to
facilitate the term loan conversion.

The decrease of approximately $96 million, based on the midpoint of the range
for 2014 Free Cash Flow, compared to $108.8 million of Cash Available for
Distribution in 2013 is attributable to several factors, including: lower
operating cash flow, primarily from the loss of more than $30 million of cash
flow from assets divested in April 2013 and $38 million from working capital
items that benefited 2013, but are not expected to recur in 2014; $12 million
of higher capex; and debt repayments under the APLP term loan, including 1%
mandatory amortization and 50% sweep of APLP's cash flow after capex and debt
service (estimated to total $52 million in 2014). These reductions are partly
offset by increased Project Adjusted EBITDA and lower interest expense in
2014, excluding the prepayments and additional interest expense associated
with the refinancing transaction, which are excluded from Free Cash Flow.

See Table 4 for full-year 2014 guidance.



Atlantic Power Corporation
Table 4 – 2014 Annual Guidance
(in millions of U.S. dollars)
Unaudited
2014 Annual Guidance
Project Adjusted EBITDA                            $280 - $305
Free Cash Flow ^(1)                                $0 - $25
APLP Project Adjusted EBITDA ^ (2)                 $165 - $175
^(1) Free Cash Flow is defined as cash flows from operating activities less
capex; project-level debt repayments, including amortization of the new term
loan; and distributions to non-controlling interests, including preferred
share dividends.

^(2) APLP is a wholly owned subsidiary of the Company. APLP Project Adjusted
EBITDA is a summation of Project Adjusted EBITDA at each APLP project, and is
calculated in a manner which is consistent with the Company's Project Adjusted
EBITDA calculation.



Note: Project Adjusted EBITDA and Free Cash Flow 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. 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.



Business Update

Major Maintenance and Optimization Initiatives

In 2013, the Company's project capital expenditures and major maintenance
expenses totaled $41 million. The majority of these expenditures represents
major maintenance on the Company's projects and are expensed. In addition,
the Company has an ongoing effort to identify and implement discretionary
investments in its existing portfolio of projects designed to improve
operating performance, enhance efficiency or lower costs, with a goal of
increasing Project Adjusted EBITDA. The larger of these optimization
investments typically are included in major maintenance and capex, but there
are also many smaller investments of this type that are expensed as part of
normal operation and maintenance expense.

The Company had previously indicated plans to invest $20 million in such
optimization projects in 2013 and 2014, including a steam generator
replacement at Nipigon and the repowering of two turbines at Curtis Palmer,
with an expected Project Adjusted EBITDA run rate contribution of at least $6
million beginning in 2015. 

Since the third-quarter conference call, the Company has identified and
expects to proceed with additional discretionary investments in 2014 of $7
million, including a $2.2 million project to boost output at Morris. Total
investments of this type are now expected to be approximately $27 million,
with an expected Project Adjusted EBITDA run-rate contribution of at least $8
million beginning in 2015. The Company expects to realize approximately half
this level in 2014 attributable to investments completed in 2013 and initial
returns from projects scheduled to be completed in the early part of 2014.

In 2014, the Company expects to have project capital expenditures and major
maintenance expenses of approximately $38 million, including optimization
investments of $18 million. Total expenditures are expected to be slightly
lower than the $41 million in 2013 despite a higher level of
optimization-related spending because there is lower major maintenance this
year as a result of fewer scheduled gas turbine outages.

Going forward, the Company expects that major maintenance expense and capex
will average approximately $25 million annually. Although the level of
optimization investments will vary year to year, and is unlikely to reach the
level budgeted in 2014, the Company hopes to identify approximately $5 to $10
million of such investments annually.

See Table 5 for 2013 actual and 2014 guidance for major maintenance and capex
and optimization investments.



Atlantic Power Corporation
Table 5 – Major Maintenance and optimization investments (in millions of U.S.
dollars)
Unaudited                                      2013 Actual 2014 Guidance Total
Total major maintenance and capex              $41.0       $38           -
 Expensed (included in Project Adjusted    34.5        19            -
EBITDA)
 Capitalized                               6.5         19            -
Optimization investments (most of which are    8           19            $27
included above)



Asset Sales

As previously disclosed, in December 2012, the Company signed a purchase and
sale agreement with PNM, a subsidiary of PNM Resources, Inc., pursuant to
which the Company and its partners in the investment have agreed to sell
Delta-Person. The Company expects this transaction to close in 2014, subject
to receipt of all required approvals, and expects to receive net cash proceeds
of approximately $9 million.

In November 2013, the Company completed the sale of its 60% interest in
Rollcast. As consideration for the sale, the Company was assigned asset
management contracts for the Cadillac and Piedmont projects as well as the
remaining 2% ownership interest in Piedmont, bringing its total ownership of
this project to 100%.

Investor Conference Call and Webcast

A telephone conference call hosted by Atlantic Power's management team will be
held on Friday, February 28,2014 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:
1-888-317-6003; Canada Toll Free: 1-866-284-3684; International Toll: +1
412-317-6016. Participants will need to provide access code 4932951 to enter
the conference call. 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; Canada Toll Free 1-855-669-9658; International Toll:
+1-412-317-0088. Please enter conference call number 10039266. 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 2,950 MW in
which its aggregate ownership interest is approximately 2,025 MW. These totals
exclude the Company's 40% interest in the Delta-Person generating station that
the Company entered into an agreement to sell in December 2012. Its current
portfolio consists of interests in twenty-eight operational power generation
projects across eleven states in the United States and two provinces in
Canada.

Atlantic Power has a market capitalization of approximately $300 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 expectations that:

  o2014 Project Adjusted EBITDA will be in the range of $280 to $305 million;
  o2014 APLP Project Adjusted EBITDA will be in the range of $165 to $175
    million;
  o2014 Free Cash Flow will be in the range of $0 to $25 million;
  oThe availability of Free Cash Flow for additional debt reduction, internal
    or external growth, or distributions to shareholders, depending on the
    amount of Free Cash Flow generated and the decision of management,
    together with the board, on the allocation of such Free Cash Flow;
  oproject distributions from Canadian Hills and Meadow Creek will be $15 to
    $19 million and $7 to $8 million, respectively, on a multi-year average
    annual basis;
  odistributions from Piedmont will average $4 to $6 million annually after
    2014;
  oprojected debt at year-end 2014 will be $1,898 million, reflecting
    initial-year amortization of the term loan, project-level debt repayments
    in 2014 and the redemption of the convertible debentures due in October
    2014;
  othe Company will be in compliance with the financial maintenance covenants
    in the agreements governing its indebtedness for at least the next twelve
    months;
  othe Company, in March, will reduce its outstanding letters of credit by a
    total of $16 million, by reducing letters of credit posted with another
    counterparty by $10 million and by reducing the level of letters of credit
    required to be posted in the transition from the Prior Credit Facility to
    the new Senior Secured Revolving Credit Facility by $6 million;
  ototal capex for the investment upgrade at Nipigon will be approximately
    $10 million and the new steam generator at Nipigon will result in improved
    Project Adjusted EBITDA and cash flows beginning in 2015;
  othe level of optimization capex will be $18 million in 2014, for a
    two-year total of approximately $27 million, and that these investments
    will produce a Project Adjusted EBITDA run-rate contribution of
    approximately $8 million beginning in 2015;
  othe Company's evaluations of a broad range of options, including asset
    sales or joint ventures to raise capital in a cost-effective manner for
    growth or additional debt reduction, as well as broader more strategic
    options, and the outcome of such evaluations;
  othe Company will have project capital expenditures and major maintenance
    expenses of approximately $38 million in 2014, including optimization
    initiatives of $18 million;
  omajor maintenance expense and maintenance capex will average approximately
    $25 million annually;
  othe Company will have annual optimization capex on average of $5 to $10
    million;
  osubject to market conditions and other factors, the Company may use the
    remaining proceeds from the Senior Secured Term Loan Facility, together
    with cash on hand, to repurchase or redeem, by means of a tender offer or
    otherwise, up to $150 million aggregate principal amount of the Company's
    high-yield 9.0% notes;
  othe Company will reduce interest expense going forward;
  othe sale of Delta-Person will successfully close in 2014 with net cash
    proceeds received by the Company of $9 million; and
  othe results of operations and performance of the Company's 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 6 – Consolidated Balance Sheet (in millions of U.S. dollars)
                                                     December 31, December 31,
                                                     2013         2012
Assets                                               (Unaudited)
Current assets:
Cash and cash equivalents                            $158.6       $60.2
Restricted cash                                      114.2        28.6
Accounts receivable                                  64.3         58.5
Current portion of derivative instruments asset      0.2          9.5
Inventory                                            16.0         16.9
Prepayments and other current assets                 16.1         13.4
Security deposits                                    -            19.0
Assets held for sale                                 -            351.4
Refundable income taxes                              4.0          4.2
Total current assets                                 373.4        561.7
Property, plant and equipment, net                   1,813.4      2,055.5
Equity investments in unconsolidated affiliates      394.3        428.7
Power purchase agreements and intangible assets, net 451.5        524.9
Goodwill                                             296.3        334.7
Derivative instruments asset                         13.0         11.1
Other assets                                         53.1         86.1
Total assets                                         $3,395.0     $4,002.7
Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable                                     $14.0        $17.8
Accrued interest                                     17.7         19.0
Other accrued liabilities                            58.8         73.7
Revolving credit facility                            -            67.0
Current portion of long-term debt                    216.2        121.2
Current portion of convertible debentures            42.1         -
Current portion of derivative instruments liability  28.5         33.0
Dividends payable                                    6.8          11.5
Liabilities associated with assets held for sale     -            189.0
Other current liabilities                            5.3          3.3
Total current liabilities                            389.4        535.5
Long-term debt                                       1,254.8      1,459.1
Convertible debentures                               363.1        424.2
Derivative instruments liability                     76.1         118.1
Deferred income taxes                                111.5        164.0
Power purchase and fuel supply agreement             38.7         44.0
liabilities, net
Other long-term liabilities                          65.4         71.4
Commitments and contingencies                        -            -
Total liabilities                                    2,299.0      2,816.3
Equity
Common shares, no par value, unlimited authorized
shares; 120,205,813 and 119,446,865 issued and       1,286.1      1,285.5
outstanding at December 31, 2013 and December 31,
2012, respectively
Preferred shares issued by a subsidiary company      221.3        221.3
Accumulated other comprehensive income (loss)        (22.4)       9.4
Retained deficit                                     (655.4)      (565.2)
Total Atlantic Power Corporation shareholders'       829.6        951.0
equity
Noncontrolling interest                              266.4        235.4
Total equity                                         1,096.0      1,186.4
Total liabilities and equity                         $3,395.0     $4,002.7





Atlantic Power Corporation
Table 7 – Consolidated Statements of Operations
(in millions of U.S. dollars, except per share amounts)
Unaudited
                                                           Three months ended
                                                            December 31,
                                   Years Ended December 31,
                                   2013    2012     2011    2013      2012
Project revenue
Energy sales                       $304.2  $217.0   $43.6   $99.8     $58.0
Energy capacity revenue            168.8   154.9    34.0    12.4      37.6
Other                              78.7    68.5     16.3    18.5      18.4
                                   551.7   440.4    93.9    130.7     114.0
Project expenses:
Fuel                               198.7   169.1    37.5    49.9      45.6
Operations and maintenance         152.4   122.8    20.9    40.0      34.8
Development                        7.2     -        -       2.3       -
Depreciation and amortization      167.1   118.0    23.6    41.4      30.6
                                   525.4   409.9    82.0    133.6     111.0
Project other income (expense):
Change in fair value of derivative 49.5    (59.3)   (14.6)  16.1      (7.9)
instruments
Equity in earnings of              26.9    15.2     6.4     2.3       3.4
unconsolidated affiliates
Gain on sale of equity investments 30.4    0.6      -       -         -
Interest expense, net              (34.4)  (16.4)   (7.3)   (8.7)     (4.2)
Impairment of goodwill             (34.9)  -        -       -         -
Other income, net                  0.5     -        -       0.4       (0.1)
                                   38.0    (59.9)   (15.5)  10.1      (8.8)
Project income (loss)              64.3    (29.4)   (3.6)   7.2       (5.8)
Administrative and other expenses
(income):
Administration                     35.2    28.3     37.7    6.7       6.3
Interest, net                      104.1   89.8     26.0    25.4      20.6
Foreign exchange loss (gain)       (27.4)  0.5      13.8    (14.5)    (3.9)
Other income, net                  (10.5)  (5.7)    (0.1)   (1.0)     (0.1)
                                   101.4   112.9    77.4    16.6      22.9
Loss from continuing operations    (37.1)  (142.3)  (81.0)  (9.4)     (28.7)
before income taxes
Income tax benefit                 (19.5)  (28.1)   (11.1)  (17.6)    (9.0)
Income (loss) from continuing      (17.6)  (114.2)  (69.9)  8.2       (19.7)
operations
Net income (loss) from
discontinued operations, net of    (6.2)   13.9     34.3    (0.2)     (34.8)
tax ^(1)
Net income (loss)                  (23.8)  (100.3)  (35.6)  8.0       (54.5)
Net income (loss) attributable to  (3.4)   (0.6)    (0.5)   (0.1)     0.1
noncontrolling interest
Net income attributable to
preferred share dividends of a     12.6    13.1     3.3     3.2       3.4
subsidiary company
Net income (loss) attributable to  $(33.0) $(112.8) $(38.4) $4.9      $(58.0)
Atlantic Power Corporation
Basic and diluted earnings (loss)
earnings per share:
Income (loss) from continuing
operations attributable to         $(0.23) $(1.09)  $(0.94) $0.04     $(0.20)
Atlantic Power Corporation
Income (loss) from discontinued    (0.05)  0.12     0.44    -         (0.30)
operations, net of tax
Net income (loss) attributable to  $(0.28) (0.97)   $(0.50) $0.04     $(0.50)
Atlantic Power Corporation
(1) Includes contributions from the Sold Projects and Rollcast which are a
component of discontinued operations.





Atlantic Power Corporation
Table 8 – Consolidated Statements of Cash Flows (in millions of U.S. dollars)
                                                      Years ended December 31,
Unaudited                                             2013    2012     2011
Cash flows from operating activities:
Net loss                                              $(23.8) $(100.3) $(35.6)
Adjustments to reconcile to net cash provided by
operating activities
Depreciation and amortization                         176.4   157.2    63.6
Loss of discontinued operations                       32.8    -        -
(Gain) loss on sale of assets & other charges         (5.1)   0.8      -
Long-term incentive plan expense                      2.2     2.5      3.2
Asset and goodwill impairment charges                 39.7    60.5     1.5
Gain on sale of equity investments                    (30.4)  (0.6)    -
Equity in earnings from unconsolidated affiliates     (26.9)  (25.7)   (7.9)
Distributions from unconsolidated affiliates          40.9    38.4     21.9
Unrealized foreign exchange (gain) loss               (13.0)  19.0     8.6
Change in fair value of derivative instruments        (60.2)  46.7     22.8
Change in deferred income taxes                       (27.3)  (34.1)   (9.9)
Change in other operating balances
Accounts receivable                                   3.4     2.3      (15.6)
Inventory                                             0.8     (6.2)    (0.4)
Prepayments, refundable income taxes and other assets 51.5    (13.3)   2.1
Accounts payable                                      (8.4)   21.1     4.9
Accruals and other liabilities                        (0.2)   (1.2)    (3.3)
Cash provided by operating activities                 152.4   167.1    55.9
Cash flows provided by (used in) investing activities
Change in restricted cash                             (93.7)  (11.6)   (5.7)
Proceeds from sale of assets and equity investments,  182.6   27.9     8.5
net
Cash paid for acquisitions and investments, net of    -       (80.5)   (591.6)
cash acquired
Proceeds from related party                           -       -        22.8
Proceeds from treasury grant                          103.2   -        -
Biomass development costs                             (0.2)   (0.5)    (0.9)
Construction in progress                              (38.3)  (456.2)  (113.1)
Purchase of property, plant and equipment             (6.5)   (2.9)    (2.0)
Cash provided by (used in) investing activities       147.1   (523.8)  (682.0)
Cash flows (used in) provided by financing activities
Proceeds from issuance of long-term debt              -       -        460.0
Proceeds from issuance of convertible debentures      -       230.6    -
Proceeds from issuance of equity, net of offering     (1.0)   66.3     155.4
costs
Proceeds from project-level debt                      20.8    291.9    100.8
Repayment of project-level debt                       (118.8) (284.8)  (21.5)
Payments for revolving credit facility borrowings     (67.0)  (60.8)   -
Proceeds from revolving credit facility borrowings    -       69.8     58.0
Deferred financing costs                              (2.8)   (31.2)   (26.4)
Equity contribution from noncontrolling interest      44.6    225.0    -
Dividends paid to common shareholders                 (65.1)  (131.0)  (81.8)
Dividends paid to noncontrolling interests            (18.3)  (13.1)   (3.2)
Cash (used in) provided by financing activities       (207.6) 362.7    641.3
Net increase in cash and cash equivalents             91.9    6.0      15.2
Less cash at discontinued operations                  -       (6.5)    -
Cash and cash equivalents at beginning of period at   6.5     -        -
discontinued operations
Cash and cash equivalents at beginning of period      60.2    60.7     45.5
Cash and cash equivalents at end of period            $158.6  $60.2    $60.7
Supplemental cash flow information
Interest paid                                         $130.4  $40.2    $40.2
Income taxes paid, net                                $5.9    $1.1     $1.1
Accruals for construction in progress                 $8.9    $4.1     $4.1



Regulation G Disclosures

Cash Available for Distribution, Payout Ratio, Cash Distributions from
Projects and Free Cash Flow are not measures recognized under GAAP and do not
have standardized meanings prescribed by GAAP. Management believes that Cash
Available for Distribution, Payout Ratio 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 and Payout Ratio to cash flows from operating activities and of
Cash Distributions from Projects to Project income (loss) are provided in
Table 11 on page 16 of this release. Investors are cautioned that the Company
may calculate these measures in a manner that is different from other
companies.

Free Cash Flow is defined as cash flows from operating activities less capex;
project-level debt repayments, including amortization of the new term loan;
and distributions to non-controlling interests, including preferred share
dividends.

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 9 below and
Tables 10A and 10B 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 9 – Project Adjusted EBITDA by segment
Unaudited
                       Years ended December 31,         Three months ended
                                                        December 31,
                       2013         2012       2011     2013        2012
Project Adjusted
EBITDA by segment
East ^(1)              $150.7       $145.7     $66.8    $38.6       $46.2
West ^(2)              78.8         82.1       16.4     9.6         10.2
Wind                   59.6         10.9       4.3      16.2        4.2
Un-allocated corporate (18.6)       (11.1)     (0.7)    (7.2)       (3.7)
^(3)
Total                  270.5        227.6      86.8     57.2        56.9
Reconciliation to
project income
Depreciation and       209.8        164.9      55.5     55.3        41.9
amortization
Interest expense, net  38.5         24.0       15.2     8.0         5.9
Change in the fair
value of derivative    (50.3)       56.6       17.2     (15.5)      7.7
instruments
Other expense          8.2          11.5       2.5      2.2         7.2
Project income (loss)  $64.3        $(29.4)    $(3.6)   $7.2        $(5.8)
(1) Excludes Auburndale, Lake and Pasco, which are components of discontinued
operations.

(2) Excludes Path 15, which is a component of discontinued operations.

(3) Excludes Rollcast, which is a component of discontinued operations.



Notes: Table 9 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 four reportable segments: East, West, Wind and Un-allocated
Corporate. The Company revised its reportable business segments in the fourth
quarter of 2013 as a result of recent significant asset sales and in order to
align with changes in management's structure, resource allocation and
performance assessment in making decisions regarding its operations. The
Company's financial results for the years ended December 31, 2013, 2012 and
2011 and the three months ended December 31, 2013 and 2012 have been presented
to reflect these changes in operating segments. These changes reflect the
Company's current operating focus. The segment classified as Un-allocated
Corporate includes activities that support the executive and administrative
offices, capital structure and costs of being a public registrant. These costs
are not allocated to the operating segments when determining segment profit or
loss.





Atlantic Power Corporation
Table 10A – Cash Distributions from Projects (by Segment, in millions of U.S.
dollars)
Year ended December 31, 2013
                                                       Other,
              Project  Repayment                       including Cash
                       of        Interest Capital      changes   Distributions
Unaudited     Adjusted           expense, expenditures in
              EBITDA   long-term net                             from Projects
                       debt                            working
                                                       capital
Segment
East
             $100.3   $(3.9)    $(17.3)  $(6.7)       $18.8     $91.2
Consolidated
 Equity      50.4     (14.0)    (3.6)    (0.9)        4.3       36.2
method
 Total       150.7    (17.9)    (20.9)   (7.6)        23.1      127.4
West
             61.6     -         -        (1.1)        (2.3)     58.2
Consolidated
 Equity      17.2     1.2       (0.3)    (1.1)        (2.9)     14.1
method
 Total       78.8     1.2       (0.3)    (2.2)        (5.2)     72.3
Wind
             50.0     (7.0)     (14.6)   (11.2)       6.2       23.4
Consolidated
 Equity      9.6      (2.6)     (4.9)    -            0.4       2.5
method
 Total       59.6     (9.6)     (19.5)   (11.2)       6.6       25.9
 Total       211.9    (10.9)    (31.9)   (19.0)       22.7      172.8
consolidated
 Total       77.2     (15.4)    (8.8)    (2.0)        1.8       52.8
equity method
Un-allocated  (18.6)   (0.2)     3.1      0.1          15.6      -
corporate
Total         $270.5   $(26.5)   $(37.6)  $(20.9)      $40.1     $225.6
Notes: Table 10A 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.



The Company has four reportable segments: East, West, Wind and Un-allocated
Corporate. The Company revised its reportable business segments in the fourth
quarter of 2013 as a result of recent significant asset sales and in order to
align with changes in management's structure, resource allocation and
performance assessment in making decisions regarding its operations. The
Company's financial results for the year ended December 31, 2013 has been
presented to reflect these changes in operating segments. These changes
reflect the Company's current operating focus. The segment classified as
Un-allocated Corporate includes activities that support the executive and
administrative offices, capital structure and costs of being a public
registrant. These costs are not allocated to the operating segments when
determining segment profit or loss.
Atlantic Power Corporation
Table 10B – Cash Distributions from Projects (by Segment, in millions of U.S.
dollars)
Year ended December 31, 2012
                                                       Other,
              Project  Repayment                       including Cash
                       of        Interest Capital      changes   Distributions
Unaudited     Adjusted           expense, expenditures in
              EBITDA   long-term net                             from Projects
                       debt                            working
                                                       capital
Segment
East
             $91.2    $(2.4)    $(13.8)  $(1.3)       $14.6     $88.3
Consolidated
 Equity      54.5     (19.3)    (4.7)    (0.4)        0.4       30.5
method
 Total       145.7    (21.7)    (18.5)   (1.7)        15.0      118.8
West
             67.6     -         -        (0.1)        0.5       68.0
Consolidated
 Equity      14.5     (3.6)     (0.4)    (0.2)        1.4       11.7
method
 Total       82.1     (3.6)     (0.4)    (0.3)        1.9       79.7
Wind
             4.3      -         (1.9)    -            (2.4)     -
Consolidated
 Equity      6.6      (2.0)     (3.2)    0.2          (0.3)     1.3
method
 Total       10.9     (2.0)     (5.1)    0.2          (2.7)     1.3
 Total       163.1    (2.4)     (15.7)   (1.4)        12.7      156.3
consolidated
 Total       75.6     (24.9)    (8.3)    (0.4)        1.5       43.5
equity method
Un-allocated  (11.1)   -         -        -            11.1      -
corporate
Total         $227.6   $(27.3)   $(24.0)  $(1.8)       $25.3     $199.8
Notes: Table 10B 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.



The Company has four reportable segments: East, West, Wind and Un-allocated
Corporate. The Company revised its reportable business segments in the fourth
quarter of 2013 as a result of recent significant asset sales and in order to
align with changes in management's structure, resource allocation and
performance assessment in making decisions regarding its operations. The
Company's financial results for the year ended December 31, 2012 has been
presented to reflect these changes in operating segments. These changes
reflect the Company's current operating focus. The segment classified as
Un-allocated Corporate includes activities that support the executive and
administrative offices, capital structure and costs of being a public
registrant. These costs are not allocated to the operating segments when
determining segment profit or loss.





Atlantic Power Corporation

Table 11 – Cash Available for Distribution (in millions of U.S. dollars)

Unaudited
Years ended December 31,
                                    2013           2012           2011
Cash Distributions from Projects    $225.6         $199.8         $35.9
Repayment of long-term debt         (26.5)         (27.3)         (62.3)
Interest expense, net               (37.6)         (24.0)         (15.2)
Capital expenditures                (20.9)         (1.8)          (2.6)
Other, including changes in working 40.1           25.3           29.2
capital
Project Adjusted EBITDA             $270.5         $227.6         $86.8
Depreciation and amortization       209.8          164.9          55.5
Interest expense, net               38.5           24.0           15.2
Change in the fair value of         (50.3)         56.6           17.2
derivative instruments
Other (income) expense              8.2            11.5           2.5
Project income (loss)               $64.3          $(29.4)        $(3.6)
Administrative and other expenses   101.4          112.9          77.4
Income tax expense (benefit)        (19.5)         (28.1)         (11.1)
Income (loss) from discontinued     (6.2)          13.9           34.3
operations, net of tax
Net loss                            $(23.8)        $(100.3)       $(35.6)
Adjustments to reconcile to net
cash provided by operating          129.1          264.7          103.8
activities
Change in other operating balances  47.1           2.7            (12.3)
Cash flows from operating           $152.4         $167.1         $55.9
activities
Project-level debt repayments       (15.6)         (19.6)         (21.5)
Purchases of property, plant and    (6.5)          (2.9)          (2.0)
equipment ^(1)
Transaction costs ^(2)              -              -              33.4
Realized foreign currency losses on
hedges associated with the          -              -              16.5
Partnership transaction ^(3)
Distributions to noncontrolling     (8.9)          -              -
interests
Dividends on preferred shares of a  (12.6)         (13.0)         (3.2)
subsidiary company
Cash Available for Distribution     $108.8         $131.6         $79.1
Total cash dividends declared to    58.0           131.8          86.4
shareholders
Payout Ratio                        53%            100%           109%
(1) Excludes construction costs related to our Piedmont biomass project and
Canadian Hills and Meadow Creek projects.

(2) Represents costs incurred associated with the Partnership acquisition.

(3) Represents realized foreign currency losses associated with foreign
exchange forwards entered into in order to hedge a portion of the foreign
currency exchange risks associated with the closing of the Partnership
acquisition.



Note: Table 11 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 12 – Project Adjusted EBITDAby Project (for Selected Projects)

(in millions of U.S. dollars)

Unaudited
                                               Years ended December 31,
                                               2013       2012       2011
East                   Accounting
Cadillac               Consolidated            $9.1       $9.3       $8.9
Curtis Palmer          Consolidated            32.1       28.0       8.1
Nipigon                Consolidated            13.4       14.6       1.8
North Bay              Consolidated            8.5        8.1        1.9
Tunis                  Consolidated            9.5        13.5       3.0
Piedmont               Consolidated            2.3        (0.1)      -
Other ^(1)             Consolidated            25.4       17.8       3.4
Chambers               Equity method           20.6       27.8       16.6
Selkirk                Equity method           20.8       17.8       16.5
Orlando                Equity method           9.0        8.9        6.6
Total                                          150.7      145.7      66.8
West
Manchief               Consolidated            16.9       15.1       3.6
Williams Lake          Consolidated            16.5       18.5       2.7
Other ^(2)             Consolidated            28.2       34.0       3.3
Other ^(3)             Equity method           17.2       14.5       6.8
Total                                          78.8       82.1       16.4
Wind
Canadian Hills         Consolidated            25.6       0.8        -
Meadow Creek           Consolidated            14.0       -          -
Rockland               Consolidated            10.4       3.5        -
Other ^(4)             Equity method           9.6        6.6        4.3
Total                                          59.6       10.9       4.3
Totals
Consolidated projects                          211.9      163.1      36.7
Equity method projects                         77.2       75.6       50.8
Un-allocated corporate                         (18.6)     (11.1)     (0.7)
Total Project Adjusted                         $270.5     $227.6     $86.8
EBITDA
Depreciation and                               $209.8     $164.9     $55.5
amortization
Interest expense, net                          38.5       24.0       15.2
Change in the fair
value of derivative                            (50.3)     56.6       17.2
instruments
Other (income) expense                         8.2        11.5       2.5
Project income (loss)                          $64.3      $(29.4)    $(3.6)
(1) 2013, 2012 and 2011: Kenilworth, Calstock, Kapuskasing and Morris

(2) 2013: Moresby Lake, Mamquam, Naval Station, North Island, Naval Training
Station, Greeley, Oxnard; 2012 and 2011: Includes 2013 projects and Badger
Creek

(3) 2013: Koma Kulshan, Gregory, Delta-Person, Frederickson; 2012 and 2011:
Includes 2013 projects and PERH

(4) 2013: Idaho Wind, Goshen North; 2012 and 2011: Idaho Wind



Notes: Table 12 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.



The Company has four reportable segments: East, West, Wind and Un-allocated
Corporate. The Company revised its reportable business segments in the fourth
quarter of 2013 as a result of recent significant asset sales and in order to
align with changes in management's structure, resource allocation and
performance assessment in making decisions regarding its operations. The
Company's financial results for the years ended December 31, 2013, 2012 and
2011 have been presented to reflect these changes in operating segments. These
changes reflect the Company's current operating focus. The segment classified
as Un-allocated Corporate includes activities that support the executive and
administrative offices, capital structure and costs of being a public
registrant. These costs are not allocated to the operating segments when
determining segment profit or loss.



SOURCE Atlantic Power Corporation

Website: http://www.atlanticpower.com
 
Press spacebar to pause and continue. Press esc to stop.