Algonquin Power & Utilities Corp. Announces 2014 First Quarter Financial Results

   Algonquin Power & Utilities Corp. Announces 2014 First Quarter Financial
                                   Results

PR Newswire

OAKVILLE, ON, May 8, 2014

OAKVILLE, ON, May 8, 2014 /PRNewswire/ -Algonquin Power & Utilities Corp.
(TSX: AQN) ("APUC"), today announced financial results for the first quarter
ended March31, 2014.

Financial Highlights:

  oFor the first quarter of 2014, revenue was $343.5 million compared to
    $193.3 million in the first quarter of 2013. The increase in revenue over
    the same period in 2013 is primarily the result of regulated utility
    acquisitions including Peach State Gas and New England Gas, and increased
    customer demand along with higher electricity and gas rates at EnergyNorth
    Gas and Granite State Electric.

  oAPUC reported net earnings from continuing operations of $35.6 million or
    $0.16 per share in the first quarter of 2014 compared to net earnings from
    continuing operations of $20.3 million or $0.09 per share in the first
    quarter of 2013.

  oAPUC reported adjusted net earnings^1 of $36.8 million or $0.17 per share
    in the first quarter of 2014 compared to adjusted net earnings^1 of $19.6
    million or $0.09 per share in the first quarter of 2013.

  oAdjusted Earnings Before Interest, Taxes, Depreciation & Amortization
    ("Adjusted EBITDA" ^ 1) was $97.5 million in the first quarter of 2014
    compared to $62.8 million in the first quarter of 2013. The increase in
    Adjusted EBITDA^1 is primarily due to increased customer demand from
    natural gas and electricity distribution systems, acquisitions completed
    in 2013, the impact of rate case settlements in the utilities business,
    and a stronger U.S. dollar.

Growth Highlights:

  oOn January 22, 2014, a subsidiary of APUC, Liberty Utilities (Granite
    State Electric) Corp. achieved a rate increase of U.S. $10.9 million,
    which also allows for a one time recovery of rate case expenses of U.S.
    $0.4 million. The rate increase was approved on March 17, 2014 with the
    new permanent rates effective as of April 1, 2014.

  oDuring the quarter, a subsidiary of APUC, Algonquin Power Co., completed
    the construction of its 10 MWac solar project located near Cornwall,
    Ontario. The facility reached commercial operation on March 27, 2014 for a
    total capital cost of approximately $44.7 million. The facility represents
    the first solar project in the portfolio. The facility is expected to
    generate approximately 14,400 MW-hrs of electricity annually with the
    power sold under a 20 year FIT Power Purchase Agreement with the Ontario
    Power Authority.

  oOn March 31, 2014, Algonquin Power Co., completed the acquisition of the
    remaining 40% of a 400 MW wind power portfolio in the United States for
    total consideration of $115.0 million. Algonquin Power Co. originally
    owned a 60% controlling interest in the portfolio therefore no additional
    ongoing management or administrative costs are expected to be incurred.
    The 400 MW wind portfolio consists of three facilities, Minonk (200 MW),
    Senate (150 MW), and Sandy Ridge (50 MW) located in the states of
    Illinois, Texas, and Pennsylvania, respectively.

Corporate Highlights:

  oOn January 17, 2014, Algonquin Power Co. issued $200.0 million 4.65%
    senior unsecured debentures with a maturity date of February 15, 2022
    pursuant to a private placement in Canada and the United States. The
    debentures were sold at a price of $99.864 per $100.00 principal amount
    resulting in an effective yield of 4.67%. Concurrent with the offering, a
    fixed for fixed cross currency swap was entered, coterminous with the
    debentures, to economically convert the Canadian dollar denominated
    debentures into U.S. dollars, resulting in an effective interest rate
    throughout the term of approximately 4.77%.

  oAlso during the first quarter, APUC issued 4.0 million cumulative rate
    reset preferred shares, Series D at a price of $25 per share, for
    aggregate gross proceeds of $100 million. The preferred shares yield 5.0%
    annually for the initial five-year period ending March31, 2019. The
    preferred shares have been assigned a rating of P-3 (High) and Pfd-3 (Low)
    by S&P and DBRS respectively.

"I am pleased that our growth initiatives from last year are now fully
reflected in our first quarter financial results," commented Chief Executive
Officer Ian Robertson. "As we look forward to the balance of this year, we are
confident that our clearly identified portfolio of achievable opportunities
will allow us to create long-term, accretive value in our business, delivering
cash flow, earnings and dividend growth for our shareholders."

APUC's supplemental information is available on the web site at
www.algonquinpowerandutilities.com.

APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, May 9, 2014, hosted by Chief Executive Officer, Ian Robertson and
Chief Financial Officer, David Bronicheski.

Conference call details:
Date: Friday, May 9 2014
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-877-974-0445 or Local
416-644-3415.

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 4679004# from May 9, 2014 until May 23, 2014.

About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities owns and operates a diversified$3.7
billionportfolio of regulated and non-regulated utilities inNorth America.
The regulated utility business provides water, electricity and natural gas
utility services to over 480,000 customers through a portfolio of regulated
generation, transmission and distribution utility systems. The 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 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, AQN.PR.A and AQN.PR.D. Visit Algonquin
Power & Utilities atwww.AlgonquinPowerandUtilities.comand follow us on
Twitter@AQN_Utilities.

Caution Regarding Forward-Looking Information and non-GAAP Financial Measures
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.

(1) Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures
The terms "adjusted net earnings" and Adjusted EBITDA, are used in this press
release. The terms "adjusted net earnings" and Adjusted EBITDA are not
recognized measures under GAAP. There is no standardized measure of "adjusted
net earnings" and Adjusted EBITDA, consequently APUC's method of calculating
these measures may differ from methods used by other companies and therefore
may not be comparable to similar measures presented by other companies. A
calculation and analysis of "adjusted net earnings" and Adjusted EBITDA can be
found in the Management's Discussion & Analysis for the year ended December
31, 2013.

Adjusted net earnings
Adjusted net earnings is a non-GAAP metric used by many investors to compare
net earnings from operations without the effects of certain volatile primarily
non-cash items that generally have no current economic impact or items such as
acquisition expenses or litigation expenses and are viewed as not directly
related to a company's operating performance. Net earnings of APUC can be
impacted positively or negatively by gains and losses on derivative financial
instruments, including foreign exchange forward contracts, interest rate swaps
and energy forward purchase contracts as well as to movements in foreign
exchange rates on foreign currency denominated debt and working capital
balances. Adjusted weighted average shares outstanding represents weighted
average shares outstanding adjusted to remove the dilution effect related to
shares issued in advance of funding requirements. APUC uses adjusted net
earnings to assess its performance without the effects of (as applicable):
gains or losses on foreign exchange, foreign exchange forward contracts,
interest rate swaps, acquisition costs, litigation expenses and write down of
intangibles and property, plant and equipment, earnings or loss from
discontinued operations and other typically non-recurring items as these are
not reflective of the performance of the underlying business of APUC.APUC
believes that analysis and presentation of net earnings or loss on this basis
will enhance an investor's understanding of the operating performance of its
businesses. It is not intended to be representative of net earnings or loss
determined in accordance with GAAP.

Adjusted EBITDA
EBITDA is a non-GAAP metric used by many investors to compare companies on the
basis of ability to generate cash from operations. APUC uses these
calculations to monitor the amount of cash generated by APUC as compared to
the amount of dividends paid by APUC. APUC uses Adjusted EBITDA to assess the
operating performance of APUC without the effects of (as applicable):
depreciation and amortization expense, income tax expense or recoveries,
acquisition costs, litigation expenses, interest expense, gain or loss on
derivative financial instruments, write down of intangibles and property,
plant and equipment, earnings attributable to non-controlling interests and
gain or loss on foreign exchange, earnings or loss from discontinued
operations and other typically non-recurring items. APUC adjusts for these
factors as they may be non-cash, unusual in nature and are not factors used by
management for evaluating the operating performance of the company. APUC
believes that presentation of this measure will enhance an investor's
understanding of APUC's operating performance. Adjusted EBITDA is not intended
to be representative of cash provided by operating activities or results of
operations determined in accordance with GAAP.

SOURCE Algonquin Power & Utilities Corp.

Website: http://www.algonquinpower.com
Contact: Kelly Castledine, Algonquin Power & Utilities Corp., 2845 Bristol
Circle, Oakville, Ontario, L6H 7H7, Telephone: (905) 465-4500, Website:
www.AlgonquinPowerandUtilities.com
 
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