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

Algonquin Power & Utilities Corp. Announces 2014 First Quarter Financial 
Results 
OAKVILLE, ON, May 8, 2014 /CNW/ - Algonquin Power & Utilities Corp. (TSX: AQN) 
("APUC"), today announced financial results for the first quarter ended March 
31, 2014. 
Financial Highlights: 


    --  For 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.
    --  APUC 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.
    --  APUC 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.
    --  Adjusted 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:
    --  On 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.
    --  During 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.
    --  On 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:
    --  On 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%.
    --  Also 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 March 31, 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 billion portfolio of regulated and non-regulated 
utilities in North 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 at 
www.AlgonquinPowerandUtilities.com and 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. 
Kelly Castledine, Algonquin Power & Utilities Corp., 2845 Bristol Circle, 
Oakville, Ontario, L6H 7H7, Telephone: (905) 465-4500, Website: 
www.AlgonquinPowerandUtilities.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2014/08/c1554.html 
CO: Algonquin Power & Utilities Corp.
ST: Ontario
NI: OIL ERN  
-0- May/08/2014 23:49 GMT
 
 
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