Algonquin Power & Utilities Corp. Announces 2014 First Quarter Financial
OAKVILLE, ON, May 8, 2014 /CNW/ - Algonquin Power & Utilities Corp. (TSX: AQN)
("APUC"), today announced financial results for the first quarter ended March
-- 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.
-- 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
-- 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
-- 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
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
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
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:
To view this news release in HTML formatting, please use the following URL:
CO: Algonquin Power & Utilities Corp.
NI: OIL ERN
-0- May/08/2014 23:49 GMT
Press spacebar to pause and continue. Press esc to stop.