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."


 
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|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).                                                                                                      
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|North American participants dial 1-888-390-0546 and International participants dial 1-416-764-8688; the conference 
ID is        | 


    |1935649.                                                                                                           
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    |The call will also be broadcast live on the Internet at                                                            
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    |http://www.newswire.ca/en/webcast/detail/1343123/1484865 |
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|The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering replay 
PIN 935649.     | 

|_______________________________________________________________________________________________________________________
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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 
Email:info@alterrapower.ca 
To view this news release in HTML formatting, please use the following URL: 
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CO: Alterra Power Corp.
ST: British Columbia
NI: NASDAQ UTI ERN CONF  
-0- May/13/2014 02:52 GMT
 
 
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