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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