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

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

PR Newswire

VANCOUVER, May 12, 2014

TSX : AXY

(under IFRS and all amounts in US dollars unless otherwise stated)

VANCOUVER, May 12, 2014 /PRNewswire/ - 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:

       *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.

       *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:

       *Acquisition completed: Alterra completed the acquisition of 100% of
         the project on February 13, 2014.

       *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.

       *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 Exploration Interest Consolidated
                        (66.6                               and Head
March 31, 2014 ^(a)        %)     (40%) (25.5%)   (100%)      Office    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 Exploration Interest   Consolidated
                                        (25.5%)             and Head
March 31, 2013 ^(a)   (66.6%)     (40%)   ^ (b)   (100%)      Office    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 March31, 2014, the Company's fleet wide generation
was 96% of budget on a net interest basis.

                                                              
                           Generation (MWh)                               
                                           Net     Net
                Q1 2014 Q1 2014      Interest     Interest  % of
Facility            Budget      Actual        Budget       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 Montrose     24,354      5,390        9,742       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
http://www.newswire.ca/en/webcast/detail/1343123/1484865

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.

Contact:

Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
Email:info@alterrapower.ca
 
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