Alterra Power Announces Results for the Quarter Ended March 31, 2014

 Alterra Power Announces Results for the Quarter Ended March 31, 2014  TSX : AXY  (under IFRS and all amounts in US dollars unless otherwise stated)  VANCOUVER, May 12, 2014 /CNW/ - Alterra Power Corp. (TSX: AXY) ("Alterra" or  the "Company") is pleased to report its financial and operating results for  the three months ended March 31, 2014. For further information on these  results please see Alterra's Unaudited Condensed Consolidated Interim  Financial Statements and Management's Discussion and Analysis.  Alterra consolidates 100% of the results of operations at HS Orka and Soda  Lake, while Alterra's interests in the Toba Montrose run of river hydro  facility and the Dokie 1 wind facility are accounted for as equity  investments. In certain statements in this news release, Alterra's results are  disclosed as Alterra's "net interest", which means the effective portion of  results that Alterra would have reported if each of HS Orka (66.6%), Toba  Montrose (40%), Dokie 1 (25.5%),  and Soda Lake (100%) had been reported in  accordance with Alterra's actual share of ownership at March 31, 2014 and for  the three months then ended.  Management believes that net interest reporting  provides the clearest view of Alterra's performance.  Highlights for the current quarter and subsequent period include:            --  Increased Revenue and EBITDA:Consolidated revenue increased by             10% to $18.9 million, and consolidated EBITDA increased by 25%             to $7.7 million primarily due to strengthening of the Icelandic             Krona, a decrease in seasonal repair costs at Toba Montrose and             a decrease in general and administrative expenses. Net interest             revenue increased by 8% to $16.0 million and net interest             EBITDA increased by 150% to $5.1 million.         --  Reliable power generation: Alterra's fleet of power projects             generated 262,107 MWh of clean power (net interest), achieving             96% of budgeted generation.         --  HS Orka dividend: HS Orka declared a dividend of $2.0 million             in the first quarter of 2014. The Company's share is 66.6%             which is expected to be received in the second quarter of 2014.         --  Jimmie Creek hydro project highlights:       o Partnership update: The Company completed the acquisition of the         49% ownership stake formerly held by an affiliate of GE Energy         Financial Services.  Subsequent to the quarter, Alterra entered         into a new partnership agreement with an affiliate of Fiera Axium         Infrastructure, Inc. under which the partners will own 51% and 49%         respectively.       o Current activities: Construction activities have begun onsite,         including camp, road and bridge construction. Alterra is finalizing         terms with project lenders and expects to close project financing         later in 2014.         --  Shannon wind farm highlights:       o Acquisition completed:Alterra completed the acquisition of 100% of         the project on February 13, 2014.       o Interconnection security: Alterra placed a $4.5 million security         deposit with the project's transmission service provider, which has         begun the design and equipment procurement for the project's         interconnection substation.       o Current activities: Alterra is finalizing project contracts         (turbine supply, operation and maintenance, etc.), documenting a         power hedge for project output, and finalizing terms with lenders         and tax equity investors. The Company has also entered into an         exclusivity with a large energy infrastructure fund as a potential         equity partner for the project.         --  Toba Montrose:Subsequent to the quarter, the project settled             all insurance matters relating to the 2012 rockslide-related             repairs and is finalizing an agreement with its lenders to             extinguish the insurance-related waiver.         --  Mariposa development project:Alterra and its joint venture             partner (Energy Development Corporation (EDC)) performed             certain road construction and refurbishment activities in             preparation for the drilling program scheduled to begin in late             2015. This phase of project activity was completed subsequent             to the quarter end.         --  Extension of Peru joint venture with EDC:The Company completed             a further joint venture with EDC for the remainder of Alterra's             development assets in Peru. EDC obtained a 70% interest in the             development asset portfolio and will be funding 100% of the             next $6.0 million of development costs, in addition to the $8.0             million of development costs from the previous Peruvian joint             venture.  Financial Results  The following table shows Alterra's net interest in selected operating and  financial results for the year, in addition to key financial information  extracted from the consolidated results.                                                                                                      For the 3 months                   Toba             Soda                  Net     ended                 HS Orka  Montrose Dokie 1     Lake             Interest Consolidated                                                              Exploration                             (66.6                               and Head     March 31, 2014 (a)         %)     (40%) (25.5%)   (100%)       Total  Results     Generation (MWh)      219,001   2,156    22,000   18,950   —    262,107      347,780       Total Revenue          11,453     230     2,489    1,830   —     16,002       18,925       Gross Profit (Loss)     3,758   (1,650)   1,425      597   —      4,130        6,239       EBITDA (c)              5,287   (1,299)   1,860      798     (1,563)    5,083        7,717                                                                                                                                                                                                                                                                                                          For the 3 months                   Toba             Soda                  Net     ended                 HS Orka  Montrose Dokie 1     Lake             Interest   Consolidated                                                              Exploration                                             (25.5%)             and Head     March 31, 2013 (a)    (66.6%)     (40%)     (b)   (100%)       Total    Results                                                       19,347     Generation (MWh)      218,652     556    23,591            —    262,146      285,737                                                          1,445     Total Revenue          10,482      64     2,810            —     14,801       17,184       Gross Profit (Loss)     3,497   (2,785)   1,596    (254)   —      2,054        4,997       EBITDA (c)              4,086   (2,214)   2,112    344       (2,294)    2,034        6,195       (a)  All tabular amounts in the table above are expressed in thousands          of US dollars with the exception of generation that is expressed          in MWh's.     (b)  For comparison purposes, the 2013 operating results shown here for          Dokie 1 have been adjusted to show a pro forma 25.5% interest for          the comparative quarter (actual ownership during the comparative          quarter was 51.0%).     (c)  Here and elsewhere, Adjusted EBITDA ("EBITDA") is defined by          Alterra as earnings before interest, taxes, foreign exchange,          depreciation and amortization, as well as before deductions for          change in fair value of bonds payable and derivatives, foreign          exchange gain (loss), write off of development costs and goodwill          and other income (expense) except business interruption proceeds,          amortization of below market contracts, and value assigned to          options granted less share of income (loss) of equity accounted          investees plus the Company's interest in EBITDA of its equity          accounted investees. Alterra discloses EBITDA as it is a measure          used by analysts and by management to evaluate Alterra's          performance. As EBITDA is a non-IFRS measure, it may not be          comparable to EBITDA calculated by others. In addition, as EBITDA          is not a substitute for net earnings, readers should consider net          earnings in evaluating Alterra's performance. For a reconciliation          of consolidated EBITDA to Alterra's consolidated financial          statements refer to the Company's Management's Discussion and          Analysis for the three months ended March 31, 2014.  Consolidated Results  Revenue was up 10% at $18.9 million due to the strengthening of the Icelandic  Krona and gross profit improved to $6.2 million ($5.0 million at March 31,  2013).  Net loss was $9.7 million, an improvement against the comparative quarter loss  ($11.9 million) resulting from strengthening of the Icelandic Krona, a  decrease in seasonal repair costs at Toba Montrose, and a reduction in general  and administrative expenses as well as certain non-cash items including:         --  A $5.7 million non-cash loss resulting from a 14% decrease in             projected aluminum prices, which caused a reduction in the             value of PPA-related "embedded derivatives" and a modest gain             in the fair value of bonds payable ($0.6 million).         --  A $3.9 million loss on foreign exchange was recorded, due to             unfavorable movements in exchange rates.  Consolidated cash and cash equivalents at March 31, 2014 were $39.9 million  ($41.7 million at March 31 31, 2013) of which $36.5 million is held in the  Company's Icelandic subsidiary.  Net Interest Results  Alterra's net interest in revenue increased 8% to $16.0 million, and EBITDA  increased by 150% to $5.1 million per the improved operating results as  described above.  The net interest cash position at March 31, 2014 was $31.6 million.  Operating Results  For the three months ended March 31, 2014, the Company's fleet wide generation  was 96% of budget on a net interest basis.                                                                                                 Generation (MWh)                                                                           Net                   Q1 2014     Q1 2014  Interest             Net       % of     Facility       Budget      Actual    Budget Interest Actual     Budget     Reykjanes   206,208     197,669   137,335         131,648          96 %     Svartsengi  125,186     131,161    83,374          87,353         105 %     Soda Lake    19,575      18,950    19,575          18,950         97 %     Toba                                9,742       Montrose     24,354       5,390                     2,156         22 %     Dokie 1      90,872      86,273    23,172          22,000         95 %     TOTAL       466,195     439,443   273,198         262,107         96 %  Outlook  John Carson, Alterra's CEO, said, "I'm pleased to report another solid quarter  of operations for Alterra, which complements our advancements on the Jimmie  Creek and Shannon projects. 2014 will be an important year of growth for the  company as we work toward our goal of closing on project financings for both  projects later this year."     ________________________________________________________________________________________________________________________ ________  |Alterra Power will host a conference call to discuss financial and operating results on Tuesday, May 13, 2014 at  11:30 am ET    |        |(8:30 am PT).                                                                                                                    |     |                                                                                                                                 |   |North American participants dial 1-888-390-0546 and International participants dial 1-416-764-8688; the conference  ID is        |        |1935649.                                                                                                                         |     |The call will also be broadcast live on the Internet at                                                                          |     | |     |                                                                                                                                 |   |The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering replay  PIN 935649.     |   |_______________________________________________________________________________________________________________________ _________|  Cautionary Note Regarding Forward-Looking Statements and Information  Certain statements included in this news release may contain information that  is forward-looking within the meaning of certain securities laws, including  information and statements regarding prospective results of operations,  financial position, cash flows or growth potential.  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. Alterra 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 Alterra's most recent annual report and quarterly report, and in  Alterra'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, Alterra undertakes no  obligation to update any forward-looking statements or information to reflect  new information, subsequent or otherwise.    SOURCE  Alterra Power Corp.  Peter Lekich, Corporate Communications Alterra Power Corp. Phone: 604.235.6719  To view this news release in HTML formatting, please use the following URL:  CO: Alterra Power Corp. ST: British Columbia NI: NASDAQ UTI ERN CONF  
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