Capital Power Reports First Quarter 2014 Results

FOR: Capital Power Corp. 
APRIL 25, 2014 
Capital Power Reports First Quarter 2014 Results 
EDMONTON, ALBERTA--(Marketwired - April 25, 2014) - Capital Power Corporation
(Capital Power, or the Company) (TSX:CPX) today released its financial results
for the quarter ended March 31, 2014. 
Funds from operations were $90 million in the first quarter of 2014, down 13%,
on a comparable basis, from $103 million in the first quarter of 2013. Net
income attributable to shareholders in the first quarter of 2014 was $32
million, or $0.33 per share, compared with $34 million, or $0.44 per share, in
the comparable period of 2013. Normalized earnings attributable to common
shareholders in the first quarter of 2014, after adjusting for one-time items
and fair value adjustments, were $25 million or $0.31 per share compared with
$25 million or $0.36 per share in the first quarter of 2013. 
"Financial results in the first quarter were modestly below our
expectations primarily due to a 10-day unplanned outage at Genesee 1,"
said Brian Vaasjo, President and CEO of Capital Power. "Despite the
unplanned outage at Genesee 1, the rest of the fleet performed well with an
overall average plant availability of 94% in the first quarter. With Alberta
power prices generally in-line with our forecast for the remaining nine months
of 2014, we remain on track to achieve our funds from operations financial
target for this year." 
"We have finalized joint arrangement agreements with ENMAX Corporation to
advance the development, construction, and operation of the Genesee 4 and 5
facility," said Mr. Vaasjo. "Discussions relating to commercial
agreements are on-going with the expectation that these agreements will be
finalized when the project receives its full notice to proceed. Genesee 4 and 5
is scheduled for completion later this decade when additional generation in the
province is required to meet growing demand and replace generation from the
retirement of coal-fired units." 
"We are pleased to welcome our new joint venture partners, Westmoreland
Coal Company (Westmoreland) and Altius Minerals Corporation, on the Genesee
coal mine as part of Westmoreland's recent acquisition of Prairie Mines
& Minerals Royalty Ltd.'s coal operations. Westmoreland has strong
experience in mine-mouth operations and is recognized as the lowest-cost fuel
supplier to some of the cleanest, most economical and highly utilized
coal-fired utility owned power plants in North America." 
Operational and Financial Highlights(1)                   Three months ended
(unaudited)                                                         March 31
(millions of dollars except per share and                                   
 operational amounts)                                     2014          2013
Electricity generation (excluding acquired                                  
 Sundance PPA) (GWh)                                     3,241         4,142
Generation plant availability (excluding acquired                           
 Sundance PPA) (%)                                         94%           94%
Revenues                                           $       308   $       365
Adjusted EBITDA (2)                                $       113   $       135
Net income                                         $        38   $        48
Net income attributable to shareholders of the                              
 Company                                           $        32   $        34
Normalized earnings attributable to common                                  
 shareholders (2)                                  $        25   $        25
Basic earnings per share                           $      0.33   $      0.44
Diluted earnings per share                         $      0.33   $      0.44
Normalized earnings per share (2)                  $      0.31   $      0.36
Funds from operations (2)                          $        90   $       103
Purchase of property, plant and equipment and                               
 other assets                                      $        75   $       293
Dividends per common share, declared               $     0.315   $     0.315
(1) The operational and financial highlights in this press release should be 
read in conjunction with Management's Discussion and Analysis and the    
audited Consolidated Financial Statements for the three months ended     
March 31, 2014.                                                         
(2) Earnings before finance expense, income tax expense, depreciation and    
amortization, impairments, foreign exchange losses, and gains on         
disposals (adjusted EBITDA), normalized earnings attributable to common  
shareholders, normalized earnings per share, and funds from operations   
are non-GAAP financial measures and do not have standardized meanings    
under GAAP and are, therefore, unlikely to be comparable to similar      
measures used by other enterprises. See Non-GAAP Financial Measures.     
Significant Event 
Construction of K2 Wind Power Project commences 
On March 24, 2014, construction of the K2 Wind Power Project (K2 Wind)
commenced following the successful completion of an $850 million financing in
the form of a construction loan that will convert to long-term project debt
once K2 Wind starts commercial operations. K2 Wind is a 270 megawatt (MW) wind
power project located in Goderich, Ontario that is under joint development by
Samsung Renewable Energy, Inc., Pattern Energy Group LP and Capital Power with
operations expected to commence in the second half of 2015. The total estimated
project cost has been revised upward to $930 million from the previous upper
end of range of $900 million primarily due to foreign exchange changes on U.S.
contract deliverables. Capital Power's share is $310 million. As a higher
portion of the project is expected to be financed with project debt than
originally forecast, Capital Power expects higher equity returns on the
Subsequent Events 
Genesee 4 and 5 
On April 24, 2014, Capital Power and ENMAX Corporation (ENMAX) executed a
purchase and sale agreement in support of a joint arrangement agreement to
jointly develop, construct, and operate the Genesee 4 and 5 power project. The
joint arrangement agreement will provide provisions for, among other things, an
agreement for ENMAX to purchase approximately 225 MW from Capital Power for
eight years. The joint arrangement agreement closing is expected to occur in
May 2014. 
Genesee coal mine 
Capital Power is a party to various agreements with Prairie Mines &
Minerals Royalty Ltd. (PMRL) in relation to the operations of the Genesee coal
mine (Genesee Coal Mine Agreements). Pursuant to the Genesee Coal Mine
Agreements, PMRL operates the Genesee Coal Mine. In connection with the
acquisition by Westmoreland Coal Company (Westmoreland) of PMRL and the
acquisition by Altius Minerals Corporation (Altius) of the royalty assets of
PMRL, the Genesee Coal Mine Agreements and certain related agreements have,
amongst other things, been amended to: (a) confirm the acquisitions by
Westmoreland and Altius; and (b) provide for certain amendments to the Genesee
Coal Mine Agreements. 
Analyst Conference Call and Webcast 
Capital Power will be hosting a conference call and live webcast with analysts
on April 28, 2014 at 11:00 AM (ET) to discuss the first quarter results. The
conference call dial-in numbers are: 
(604) 681-8564 (Vancouver) 
(403) 532-5601 (Calgary) 
(416) 623-0333 (Toronto) 
(514) 687-4017 (Montreal) 
(855) 353-9183 (toll-free from Canada and USA) 
Participant access code for the call: 21543# 
A replay of the conference call will be available following the call at: (855)
201-2300 (toll-free) and entering conference reference number 1153040# followed
by participant code 21543#. The replay will be available until midnight on July
28, 2014. 
Interested parties may also access the live webcast on the Company's
website at with an archive of the webcast available
following the conference call. 
Non-GAAP Financial Measures 
The Company uses (i) adjusted EBITDA, (ii) funds from operations, (iii)
normalized earnings attributable to common shareholders, and (iv) normalized
earnings per share as financial performance measures. These terms are not
defined financial measures according to GAAP and do not have standardized
meanings prescribed by GAAP, and are, therefore, unlikely to be comparable to
similar measures used by other enterprises. These measures should not be
considered alternatives to gross income, net income, net income attributable of
shareholders of the Company, net cash flows from operating activities or other
measures of financial performance calculated in accordance with GAAP. Rather,
these measures are provided to complement GAAP measures in the analysis of the
Company's results of operations from management's perspective.
Reconciliations of adjusted EBITDA to gross income, operating income and net
income, funds from operations to net cash flows from operating activities and
normalized earnings attributable to common shareholders to net income
attributable to shareholders of the Company are contained in the Company's
Management's Discussion and Analysis dated April 24, 2014 for the three
months ended March 31, 2014 which is available under the Company's profile
on SEDAR at 
Forward-looking Information 
Forward-looking information or statements included in this press release are
provided to inform the Company's shareholders and potential investors
about management's assessment of Capital Power's future plans and
operations. This information may not be appropriate for other purposes. The
forward-looking information in this press release is generally identified by
words such as will, anticipate, believe, plan, intend, target, and expect or
similar words that suggest future outcomes. 
Material forward-looking information in this press release includes information
with respect to expectations regarding: (i) future cash flows, and (ii)
completion of capital projects. 
These statements are based on certain assumptions and analyses made by the
Company in light of its experience and perception of historical trends, current
conditions and expected future developments, and other factors it believes are
appropriate. The material factors and assumptions used to develop these
forward-looking statements relate to: (i) electricity and other energy prices,
(ii) performance, (iii) business prospects and opportunities including expected
growth and capital projects, (iv) status and impact of policy, legislation and
regulation, and (v) effective tax rates. 
Whether actual results, performance or achievements will conform to the
Company's expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results and experience
to differ materially from the Company's expectations. Such material risks
and uncertainties are: (i) changes in electricity prices in markets in which
the Company operates, (ii) changes in energy commodity market prices and use of
derivatives, (iii) regulatory and political environments including changes to
environmental, financial reporting and tax legislation, (iv) power plant
availability and performance including maintenance expenditures, (v) ability to
fund current and future capital and working capital needs, (vi) acquisitions
and developments including timing and costs of regulatory approvals and
construction, (vii) changes in market prices and availability of fuel, and
(viii) changes in general economic and competitive conditions. See Risks and
Risk Management in the Company's December 31, 2013 annual
Management's Discussion and Analysis for further discussion of these and
other risks. 
Media Relations:
Michael Sheehan
(780) 392-5222
Investor Relations:
Randy Mah
(780) 392-5305 or (866) 896-4636 (toll-free) 
INDUSTRY:  Energy and Utilities - Utilities 
-0- Apr/25/2014 12:00 GMT
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