Atlantic Power Corporation Releases Second Quarter 2014 Results

 BOSTON, Aug. 7, 2014 /CNW/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP)  ("Atlantic Power" or the "Company") today released its results for the three  and six months ended June 30, 2014.  http://photos.prnewswire.com/prnvar/20110809/NE49346LOGO  "Our results this quarter benefited from continued strong wind generation,  increased waste heat at our Ontario projects, improved water flows at Curtis  Palmer and lower maintenance and administrative expenses versus a year ago.   The improvement in our operating results this quarter largely offset the  impact of outages that we experienced earlier in the year," said Barry Welch,  President and CEO of Atlantic Power.  "During the quarter, we repaid $37.5 million of our new term loan, which puts  us on track to reduce total debt on a net basis by approximately $80 million  this year.  The significant amount of term loan repayment resulted in negative  Free Cash Flow this quarter, but we expect positive Free Cash Flow generation  in the second half of the year," Mr. Welch continued.  "Based on our results  year to date and our expectations for the balance of the year, we are  reaffirming our 2014 guidance metrics for Project Adjusted EBITDA and Free  Cash Flow."  All amounts are in U.S. dollars and are approximate unless otherwise  indicated. Free Cash Flow, Cash Distributions from Projects, and Project  Adjusted EBITDA are not recognized measures under generally accepted  accounting principles in the United States ("GAAP") and do not have  standardized meanings prescribed by GAAP; therefore, these measures may not be  comparable to similar measures presented by other companies. Please see  "Regulation G Disclosures" attached to this news release for an explanation  and the GAAP reconciliation of "Free Cash Flow", "Cash Distributions from  Projects" and "Project Adjusted EBITDA" as used in this news release.  Second Quarter 2014 Financial Highlights        --  Project loss of $(3.8) million decreased $24.1 million from Q2         2013, driven by a $14.8 million non-cash impairment charge at         Tunis in 2014 and $27.1 million of negative non-cash changes in         fair value of derivatives     --  Project Adjusted EBITDA of $75.0 million increased $19.1         million from Q2 2013, due to fewer outages, stronger wind and         waste heat, higher water flows at Curtis Palmer and a full         quarter of Piedmont     --  Cash flows from operating activities of $34.0 million increased         $26.8 million from Q2 2013     --  Free Cash Flow of $(15.1) million decreased $7.6 million from         Q2 2013, as increased cash flows from operating activities were         offset by the initial repayment on Atlantic Power Limited         Partnership (APLP) term loan of $37.5 million (approximately         70% of amount expected for full year)  YTD June 2014 Financial Highlights     --  Project income of $16.4 million decreased $35.4 million from         YTD June 2013, driven by the $14.8 million Tunis impairment         charge in 2014 and $25.0 million of negative non-cash changes         in fair value of derivatives     --  Project Adjusted EBITDA of $149.6 million increased $13.5         million from YTD June 2013     --  Cash flows from operating activities of $5.5 million decreased         $91.4 million from YTD June 2013, primarily due to $54 million         of debt refinancing and repurchase costs, a $33 million         reduction from businesses divested in 2013 and a $29 million         reduction in working capital from 2013     --  Free Cash Flow of $(61.0) million decreased $135.5 million from         YTD June 2013 due to the reduction in cash flows from operating         activities and $37.5 million of term loan repayment  Other Highlights     --  On track to invest $17 million in 2014 (2013-2014 total $27         million) in existing projects to boost output, improve         efficiency and reduce costs, with expected cash return of at         least $8 million annually beginning in 2015     --  Closed sale of Delta-Person for $7.2 million in proceeds, plus         another $1.4 million held in escrow, expected to be released 12         months after close of the transaction     --  Liquidity at quarter-end totaled $261 million, including $158         million of unrestricted cash  2014 Guidance Reaffirmed        --  Project Adjusted EBITDA of $280 to $305 million     --  Project Adjusted EBITDA for APLP alone of $165 to $175 million     --  Free Cash Flow of $0 to $25 million, which excludes         approximately $49 million of debt refinancing transaction costs         and $8 million of Piedmont debt payment (total $57.5 million)     Atlantic Power Corporation     Table 1 - Selected Results     (in millions of U.S. dollars, except as otherwise stated)     Unaudited                                                                                                                                                                                                                  Three months ended June 30,    Six months ended June 30,                                                                                                                                                                                                             2014       2013       2014        2013                                                                                                                                                                                                             ----       ----       ----        ----        Excluding results from discontinued operations(1)     ------------------------------------------------     Project revenue                                                                                                                                                                                           $143.2     $136.1     $288.5      $273.6  Project (loss) income                                                                                                                                                                                     (3.8)      20.3       16.4        51.8  Project Adjusted EBITDA                                                                                                                                                                                    75.0       55.9      149.6       136.1  Cash Distributions from Projects                                                                                                                                                                           85.3       50.1      135.7       104.0  Aggregate power generation (thousands of Net MWh)                                                                                                                                                       2,022.8    2,008.6    4,110.7     3,890.7  Weighted average availability                                                                                                                                                                             91.2%     92.9%     91.9%      93.9%  -----------------------------                                                                                                                                                                              ----       ----       ----        ----        Including results from discontinued operations (1)     -------------------------------------------------     Cash flows from operating activities                                                                                                                                                                       $34.0       $7.2       $5.5       $96.9  Free Cash Flow                                                                                                                                                                                           (15.1)     (7.5)    (61.0)       74.5  --------------                                                                                                                                                                                            -----       ----      -----        ----  (1) The Path 15 transmission line ("Path 15"), Auburndale Power Partners, L.P. ("Auburndale"), Lake CoGen, Ltd.  ("Lake") and Pasco Cogen, Ltd. ("Pasco") (collectively, the "Sold Projects") were sold in  April 2013, the Company's interest in Rollcast Energy ("Rollcast") was sold in November 2013, and Thermo Power &  Electric, LLC ("Greeley") was sold in March 2014.  Accordingly, the revenues, project  income (loss), Project Adjusted EBITDA and Cash Distributions from these assets are included in discontinued  operations for the three and six month periods ended June 30, 2013 and June 30, 2014.   The results of discontinued operations are excluded from Project revenue, Project income, Project Adjusted EBITDA  and Cash Distributions from Projects as presented in Table 1.  The results for  discontinued operations have also been excluded from the aggregate power generation and weighted average  availability statistics shown in Table 1.  Under GAAP, the cash flows attributable to the Sold  Projects, Rollcast and Greeley are included in cash flows from operating activities as shown on the Company's  Consolidated Statement of Cash Flows; therefore, the Company's calculation of Free Cash  Flow shown on Table 1 also includes cash flows from the Sold Projects, Rollcast, and Greeley.  The Gregory project  ("Gregory"),, which was sold in August 2013,, and the Delta-Person generating station  ("Delta-Person"), which was sold in July 2014, are both accounted for under the equity method of accounting and  therefore are included in the Company's financial results from continuing operations.  Note: Project Adjusted EBITDA, Free Cash Flow and Cash Distributions from Projects are not recognized measures  under GAAP and do not have any standardized meaning prescribed by GAAP;  therefore, these measures may not be comparable to similar measures presented by other companies. Please refer to  Tables 9 through 12 for reconciliations of these non-GAAP measures to GAAP measures.  -------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------  Financial Results  Table 2 provides a breakdown of project income and Project Adjusted EBITDA by  segment for the three and six month periods ended June 30, 2014 as compared to  the same period in 2013.  Project Income  Reported project income can fluctuate significantly due to impacts from  non-cash mark-to-market fair value of derivatives adjustments.  Three Months Ended June 30, 2014  Project income decreased by $24.1 million to $(3.8) million compared to $20.3  million for the same period in 2013.  The reduction in project income was  primarily due to:        --  Negative non-cash changes in the fair value of gas purchase         agreements and interest rate swap agreements accounted for as         derivatives in the East and Wind segments totaling $27.1         million     --  Decreased project income of $12.6 million at Tunis (East),         primarily due to a long-lived asset and goodwill impairment of         $14.8 million, partially offset by favorable outage comparisons     --  Decreased project income of $4.9 million at Selkirk (East),         primarily due to accelerated depreciation resulting from the         scheduled expiration of the project's Power Purchase Agreement         (PPA) in August 2014  These decreases were partially offset by the following positive factors:        --  Increased project income of $11.5 million at Kapuskasing (East)         and Naval Training Center, Williams Lake and Mamquam (West)         mostly due to lower maintenance expense versus 2013, when the         projects underwent scheduled maintenance outages     --  Increased project income of $3.4 million at Curtis Palmer         (East), primarily due to a decrease in interest expense of $2.8         million due to redemption of project's senior notes in February         2014     --  Increased project income of $3.3 million at Orlando (East),         which benefited from lower gas costs following the termination         of above-market swaps in February 2014 and higher capacity         payments under a new PPA     --  Increased project income of $2.3 million at Piedmont (East),         excluding the impact of derivatives included above,         attributable to a full quarter of operation versus a partial         quarter in 2013     Atlantic Power Corporation     Table 2 - Segment Results     (in millions of U.S. dollars, except as otherwise stated)     Unaudited                                                                                                                                                               Three months ended June 30,                Six months ended June 30,                                                                                                                                                                      2014                           2013        2014                   2013                                                                                                                                                                      ----                           ----        ----                   ----     Project income (loss)     --------------------     East                                                                                                                                                           $(3.6)                         $12.2       $27.7                  $43.4     West                                                                                                                                                              6.7                          (3.1)        1.5                    0.4     Wind                                                                                                                                                            (1.9)                          14.5       (7.5)                  15.3     Un-allocated Corporate                                                                                                                                          (5.0)                         (3.3)      (5.3)                 (7.3)     Total                                                                                                                                                           (3.8)                          20.3        16.4                   51.8     -----                                                                                                                                                            ----                           ----        ----                   ----     Project Adjusted EBITDA     -----------------------     East                                                                                                                                                            $38.5                          $29.4       $84.0                  $78.5     West                                                                                                                                                             22.9                           14.1        34.1                   34.7     Wind                                                                                                                                                             17.2                           15.5        35.1                   30.5     Un-allocated Corporate                                                                                                                                          (3.6)                         (3.1)      (3.6)                 (7.6)     Total                                                                                                                                                            75.0                           55.9       149.6                  136.1     -----                                                                                                                                                            ----                           ----       -----                  -----   Note: Project Adjusted EBITDA is not a recognized measure under GAAP and does not have any standardized meaning  prescribed by GAAP; therefore, this measure may not be comparable to similar  measures presented by other companies. Please refer to Tables 9 through 12 for a reconciliation of this non-GAAP  measure to a GAAP measure.  The Company has not reconciled non-GAAP financial measures relating to individual projects to the directly  comparable GAAP measure due to the difficulty in making the relevant adjustments on an  individual project basis.        -------------------------  Six Months Ended June 30, 2014  Project income decreased by $35.4 million to $16.4 million compared to $51.8  million for the same period in 2013. The reduction in project income was  primarily due to:     --  Net negative non-cash changes in fair value of gas purchase         agreements and interest rate swap agreements accounted for as         derivatives in the East and Wind segments totaling $25.0         million     --  Decreased project income of $12.8 million at Tunis (East),         primarily due to the $14.8 million impairment recorded in the         second quarter of 2014, partially offset by favorable outage         comparisons     --  Decreased project income of $7.2 million at Selkirk (East),         primarily due to accelerated depreciation as described above     --  Decreased project income of $2.8 million at Piedmont (East),         excluding the impact of derivatives included above, primarily         due to higher fuel and maintenance costs, partially offset by         increased capacity payments (the project had two quarters of         operation in 2014 versus a partial quarter in 2013)     --  Net decreases in project income for other projects totaling         approximately $7 million  These decreases were partially offset by the following positive factors:     --  Increased project income of $10.5 million at Morris and North         Bay (East) and Naval Training Center (West) primarily due to         lower maintenance expense relative to 2013, when the projects         underwent scheduled maintenance outages     --  Increased project income from Wind segment of $3.8 million,         excluding the impact of derivatives included above, primarily         due to increased wind generation from Meadow Creek     --  Increased project income of $3.1 million at Orlando (East),         excluding the impact of derivatives included above, primarily         due to lower gas costs and higher capacity payments as         described above     --  Reduction in Un-allocated Corporate segment of $2.0 million,         including $1.7 million in development costs and $0.6 million in         administrative expenses related to cost reduction initiatives         undertaken in 2013  Project Adjusted EBITDA  Project Adjusted EBITDA includes proportional EBITDA from the Company's equity  method projects and 100% of EBITDA from Rockland, which is 50% owned by the  Company, but is consolidated.  Projects classified as discontinued operations  are excluded from Project Adjusted EBITDA.  Three Months Ended June 30, 2014  Project Adjusted EBITDA increased $19.1 million to $75.0 million from $55.9  million for the comparable period in 2013. The most significant contributors  to the increase in Project Adjusted EBITDA were the following:     --  Naval Training Center, Williams Lake and Mamquam (West),         totaling approximately $9.1 million, primarily due to lower         maintenance costs in 2014 relative to 2013, when the projects         had scheduled maintenance outages     --  Ontario projects (East), totaling approximately $6.5 million.         Tunis, Kapuskasing and North Bay experienced lower maintenance         costs in 2014 relative to 2013, when the projects had scheduled         maintenance outages. In addition, the Ontario projects         benefited from higher waste heat generation resulting in         additional energy margin     --  Piedmont (East), approximately $2.1 million, due to a full         quarter of operation versus a partial quarter of operation in         2013     --  Other projects in the East totaling approximately $2.0 million,         primarily Orlando, due to lower gas costs and higher capacity         payments, and Curtis Palmer, due to increased water flows due         to a late snowmelt and above-average rainfall     --  Wind projects $1.7 million, primarily due to stronger wind         generation, particularly at Meadow Creek  These increases were partially offset by the following decreases:     --  Cadillac (East), $1.3 million due to lower capacity revenue and         energy margin and higher maintenance expenses due to a         scheduled outage  Six Months Ended June 30, 2014  Project Adjusted EBITDA increased by $13.5 million to $149.6 million from  $136.1 million for the same period in 2013, as the $19.1 million increase in  the second quarter of 2014 described previously more than offset the reduction  in the first quarter of 2014.  Results for the first quarter were adversely  affected by extreme weather and several plant outages, difficulties sourcing  fuel at the Company's biomass projects, a gas swap termination at Orlando and  several project-specific factors.  For the six-month period, the most  significant contributors to the increase in Project Adjusted EBITDA were the  following:     --  Wind projects, $4.6 million due to stronger wind generation,         particularly at Meadow Creek and Rockland, partly offset by         impact of Canadian Hills weather-related outage in January     --  Tunis, North Bay and Kapuskasing (East), totaling $4.5 million,         due primarily to increased waste heat, decreased maintenance         expenses and other factors     --  Morris (East) $4.4 million, due primarily to lower maintenance         costs, lower fuel expenses and higher revenues (higher PJM         power prices)     --  Naval Training Center (West), $3.9 million due to lower         maintenance expense compared to 2013, when the project         underwent scheduled turbine maintenance     --  Reduction in Un-allocated Corporate loss of $4.0 million,         primarily due to a reduction in development costs at Ridgeline         of $1.7 million and a reduction in administrative costs of $2.2         million resulting from cost reduction initiatives undertaken in         2013  These increases were partially offset by the following decreases:     --  Cadillac (East), $1.4 million due to lower capacity revenue and         increased maintenance expenses resulting from a scheduled         maintenance outage in March and April of 2014 that was extended     --  Net decreases totaling approximately $6.5 million at other         projects, including Williams Lake and North Island (West) and         Calstock (East), as well as smaller decreases at other projects  Cash Distributions from Projects  Cash Distributions from Projects, which excludes projects classified as  discontinued operations, increased by $32 million to approximately $136  million for the six months ended June 30, 2014, compared to $104 million for  the same period in 2013.  This result included a $35 million increase in the  second quarter of 2014, which more than offset the decline in the first  quarter of 2014.  Significant increases in the six months ended June 30, 2014 relative to the  year-ago period occurred at (i) the Navy projects in California and were  attributable to lower operation and maintenance expenses than in 2013, during  which the projects experienced planned outages, and to lower working capital  requirements associated with a new gas supply agreement in 2014; (ii) Meadow  Creek, Canadian Hills, Rockland and Idaho Wind, due to the release of  construction-related blade and credit reserves and increased wind generation;  (iii) Orlando, due to lower gas costs following the termination of swaps that  were above market as well as favorable changes to the project's PPA; and (iv)  Nipigon and Tunis, due to the timing of revenue receipts.  These increases were partly offset by decreases at (i) Chambers, which  benefited from the release of the DuPont settlement in the 2013 period and for  which there was a change in the distribution date under the project's new debt  agreement in 2014, with distributions next expected to occur in December; (ii)  Williams Lake, due to costs associated with a January 2014 forced outage; and  (iii) Selkirk, due to use of working capital to support credit requirements,  although a distribution from the project is expected in August.  Cash Flow from Operating Activities  As previously reported, during the first quarter of 2014 the Company incurred  significant costs in conjunction with its refinancing and debt repurchase  transactions, which included entry into the new credit facilities, debt  redemptions and repurchases, and the Piedmont term loan conversion.  These  costs, which totaled approximately $100 million and included prepayment  premiums and make-wholes, accrued interest expense, swap termination costs and  financing expenses and fees, are detailed in Table 4 to the first quarter 2014  earnings release dated May 12, 2014.  Approximately $49.4 million of these  costs were recorded in interest expense and another $4 million to terminate  gas swaps at the Orlando project were included in fuel expense.  Together  these reduced cash flows from operating activities and Free Cash Flow by  approximately $54 million in the first quarter of 2014, $0 million in the  second quarter of 2014 and $54 million in the first six months of 2014.  With  the exception of the Orlando gas swap termination cost, these transaction  costs did not affect Project income or Project Adjusted EBITDA.  Three Months Ended June 30, 2014  Cash flows from operating activities increased by $26.8 million to $34 million  compared to $7.2 million for the same period in 2013.  The increase is  primarily due to the $19.1 million increase in Project Adjusted EBITDA for the  quarter and a $7.0 million benefit from changes in working capital.  Six Months Ended June 30, 2014  Cash flows from operating activities decreased by $91.4 million to $5.5  million compared to $96.9 million for the same period in 2013.  The decrease  is primarily due to the $54 million of refinancing transaction costs incurred  in the first quarter and described previously, a $32.8 million decrease in  loss from discontinued operations (projects sold in 2013) and a $29.3 million  decrease in working capital from the comparable 2013 period.  The decrease in  working capital is due to a $31.6 million decrease in prepaid and other assets  due to the collection of security deposits related to recently completed  construction projects, such as Piedmont, Canadian Hills and Meadow Creek, in  the first quarter of 2013.  Free Cash Flow  Three Months Ended June 30, 2014  Free Cash Flow decreased by $7.6 million to $(15.1) million compared to $(7.5)  million for the same period in 2013.  The decrease is primarily due to $37.5  million of term loan facility repayments by APLP, partially offset by $28.6  million of higher operating cash flows.  The $37.5 million of term loan  repayments in the second quarter included $1.5 million of 1% mandatory  amortization ($6.0 million annually) and $36.0 million of debt repaid pursuant  to the 50% sweep of APLP's cash flow after debt service and capex.  The  Company expects term loan repayments for the full year to total approximately  $52 to $55 million.  Six Months Ended June 30, 2014  Free Cash Flow decreased by $135.5 million to $(61.0) million compared to  $74.5 million for the same period in 2013.  The decrease is primarily due to  $37.5 million of term loan facility repayments by APLP and a $91.4 million  decrease in operating cash flows as described previously.  The Company's full year 2014 Free Cash Flow guidance excludes (i) $49.4  million of interest expense related to the refinancing and debt repurchase  transactions and (ii) the $8.1 million Piedmont construction debt repayment.   On that basis, Free Cash Flow for the first six months of 2014 is  approximately $(3.5) million compared to $74.5 million for the same period in  2013.  Results of Discontinued Operations  Results of discontinued operations are discussed beginning on page 9 of this  press release.  Reaffirming 2014 Guidance        --  Annual Project Adjusted EBITDA guidance of $280 to $305 million     --  Annual Free Cash Flow guidance of $0 to $25 million  Project Adjusted EBITDA  The Company is reaffirming its previous guidance for 2014 Project Adjusted  EBITDA in the range of $280 to $305 million.  Results for the first six months  of 2014 totaled $149.6 million, or approximately 51% of the full-year  guidance.  In the second quarter, favorable maintenance cost comparisons due  to fewer planned outages, increased waste heat, higher levels of wind  generation, and increased water levels at Curtis Palmer mostly offset the  impact on first-quarter results of plant outages, lower water levels at Curtis  Palmer and a $4 million termination cost for certain gas swaps at Orlando.  The Company is also reaffirming its expectation for APLP's 2014 Project  Adjusted EBITDA in the range of $165 to $175 million.  The Company has not reconciled non-GAAP financial measures relating to the  APLP projects to the directly comparable GAAP measures due to the difficulty  in making the relevant adjustments on an individual project basis.  Free Cash Flow  The Company is reaffirming its previous guidance for 2014 Free Cash Flow in  the range of $0 to $25 million.  This guidance excludes (i) approximately  $49.4 million in expenses associated with the first quarter refinancing and  debt repurchase transactions and (ii) the $8.1 million repayment of Piedmont  construction debt made to facilitate the term loan conversion in February,  together totaling $57.5 million.  The Company's Free Cash Flow guidance is net  of planned capital expenditures totaling $16 million and debt repayments under  the APLP term loan of approximately $52 to $55 million in 2014.  In the first six months of 2014, Free Cash Flow excluding the $57.5 million of  transaction-related costs and Piedmont debt repayment (consistent with  full-year guidance) was $(3.5) million.  However, this was after $37.5 million  of term loan repayment.  The amount of term loan repayment in the second half  of this year is expected to be lower than in the first half because of the  timing of APLP cash flows, which are typically stronger in the winter and  spring months at the Ontario projects (waste heat) and Curtis Palmer (hydro  generation), and the timing of APLP capital expenditures, which are expected  to be higher in the second half.  The Company expects that Free Cash Flow will  benefit in the second half from distributions from minority-owned projects,  some of which were deferred from the first half, and lower parent interest  expense.  See Table 3 for full-year 2014 guidance and year-to date 2014 actual results.     Atlantic Power Corporation     Table 3 - 2014 Annual Guidance and YTD 2014 Actual     (in millions of U.S. dollars, except as otherwise stated)     Unaudited                                                                                                                                                                                                       2014 Annual Guidance YTD  2014 Actual  ---------                                                                                                                                                                                                      -------------------- ------ ---------  Project Adjusted EBITDA                                                                                                                                                                                                 $280 - $305         $149.6  Free Cash Flow (1)                                                                                                                                                                                                         $0 - $25          $(61.0)        APLP Project Adjusted EBITDA (2)                                                                                                                                                                                           $165 - $175            $88.8   (1) Free Cash Flow is defined as cash flows from operating activities less capex; project-level debt repayments,  including amortization of the Senior Secured Term Loan Facility; and distributions to  noncontrolling interests, including preferred share dividends.  Note that 2014 guidance excludes $54 million of  refinancing and debt repurchase transaction costs in first quarter 2014 and $8 million of  Piedmont debt repayment in February 2014.  (2) APLP is a wholly owned subsidiary of the Company.  APLP Project Adjusted EBITDA is a summation of Project  Adjusted EBITDA at each APLP project, and is calculated in a manner which is  consistent with the Company's Project Adjusted EBITDA calculation.  The Company has not reconciled non-GAAP  financial measures relating to individual projects or the APLP projects to the directly  comparable GAAP measures due to the difficulty in making the relevant adjustments on an individual project basis.  Note: Project Adjusted EBITDA, APLP Project Adjusted EBITDA and Free Cash Flow are not recognized measures under  GAAP and do not have any standardized meaning prescribed by GAAP;  therefore, these measures may not be comparable to similar measures presented by other companies.  The Company has  not provided a reconciliation of forward-looking non-GAAP measures, due  primarily to variability and difficulty in making accurate forecasts and projections, as not all of the information  necessary for a quantitative reconciliation is available to the Company without unreasonable  efforts.        --------  Financial Update  Liquidity  As can be seen from Table 4, the Company's liquidity increased from  approximately $246 million at March 31, 2014 to approximately $261 million as  of June 30, 2014, including $158 million of unrestricted cash.  The Company  plans to use $41 million of this cash to repay its Cdn$45 million convertible  debentures due in October 2014.  The increase in liquidity in the quarter resulted from a reduction in letters  of credit outstanding to $107 million from $144 million, which increased  revolver availability by $37 million.  This was partly offset by a $22 million  reduction in unrestricted cash, which was attributable to debt repayment and  other uses of cash during the quarter.     Atlantic Power Corporation     Table 4 - Liquidity (in millions of U.S. dollars)     Unaudited                                                                                                                                        June 30, 2014                                                                                                                                       March 31, 2014     ---                                                                                                                               --------------     Revolver capacity                                                                                                                         $210.0         $210.0     Letters of credit outstanding                                                                                                            (144.1)       (107.0)     -----------------------------                                                                                                             ------         ------     Unused borrowing capacity                                                                                                                   65.9          103.0     Unrestricted cash (1)                                                                                                                      180.0          157.6     --------------------                                                                                                                       -----          -----     Total Liquidity                                                                                                                           $245.9         $260.6   (1) Includes project-level cash for working capital needs of $16.4 million at June 30, 2014 and $17.6 million at  March 31, 2014.  -------------------------------------------------------------------------------------------------------------------- ------------  Covenant Update  Due to the aggregate impact of the up-front costs resulting from the  prepayments and repurchases of the Company's indebtedness incurred in the  first quarter of 2014 and as previously disclosed in the first quarter  earnings release dated May 12, 2014, the Company is not in compliance with the  fixed charge coverage ratio test included in the restricted payments covenant  of the indenture governing its 9.0% senior unsecured notes.  The fixed charge  coverage ratio must be at least 1.75 to 1.00 and is measured on a rolling four  quarter basis, so the costs associated with debt prepayments and repurchases  incurred in the first quarter of 2014 would no longer be included in the  calculation beginning in the second quarter of 2015.  As a consequence of the non-compliance, common dividend payments, which are  declared and paid at the discretion of the Company's board of directors, in  the aggregate cannot exceed the restricted payments "basket" provision of the  greater of $50 million and 2% of consolidated net assets (approximately $61  million at June 30, 2014), until such time that the Company satisfies the  fixed charge coverage ratio test.  The Company has declared seven monthly  dividends in January through July totaling approximately $25.6 million that  are subject to the basket provision.  The Company expects to be in compliance with the financial maintenance  covenants governing (i) the Company's 9.0% senior unsecured notes; (ii) APLP's  senior secured credit facilities, including the term loan; and (iii) APLP's  5.95% Medium-Term Notes, for at least the next twelve months.  Piedmont  During the first quarter of 2014, Piedmont underwent several forced  maintenance outages that resulted in the project not meeting its debt service  coverage ratio covenant as of June 30, 2014.  The Company does not expect  Piedmont to pass its debt service coverage ratio covenant for at least the  next twelve months.  As a result, the project is not expected to make  distributions for at least the next twelve months, which is at least six  months beyond the Company's previous expectation.  Tunis Impairment  The Company's Tunis project in Ontario has a PPA with the Ontario Power  Authority (OPA) that is scheduled to expire on December 31, 2014.  Consistent  with its accounting policy of reviewing its projects for potential impairment  six months prior to the expiration of an existing PPA, the Company conducted  an impairment analysis of Tunis in the second quarter of 2014.  Based on the  results of this analysis, the Company recorded a $14.8 million non-cash  impairment charge for Tunis, including $9.6 million associated with the  carrying value of the project's property, plant and equipment and $5.2 million  for all of the project's goodwill.  Business Update  Project Operating Performance  Three Months Ended June 30, 2014  Availability declined to 91.2% from 92.9% in the second quarter of 2013 due to  extended scheduled maintenance outages at Cadillac, Orlando, and Naval  Station, partly offset by fewer forced outage hours at Williams Lake and Naval  Station than in the year-ago period.  Generation increased 0.7% due to higher  generation at Curtis Palmer, Williams Lake, Meadow Creek and Rockland,  partially offset by the outages at Cadillac, Orlando and Naval Station and  reduced dispatch at Manchief and Selkirk.  Six Months Ended June 30, 2014  Availability declined to 91.9% from 93.9% in the first six months of 2013 due  to both scheduled and forced outages in the first quarter of 2014, some of  which were related to extreme weather, and extended scheduled maintenance  outages at Cadillac, Orlando and Naval Station in the second quarter.   Generation increased 5.7% in the first six months of 2014 due to the addition  of Piedmont in April 2013, increased dispatch at Chambers, higher generation  at Frederickson, and higher wind generation at Meadow Creek and Rockland,  partially offset by reduced dispatch at Manchief.  Capex and Optimization Update  The Company now expects to have major maintenance and capital expenditures in  2014 of approximately $35 to $40 million.  This estimate is down slightly from  the previous expectation of $38 to $43 million, because of an insurance  recovery at Piedmont, timing of expenditures and cost savings on certain  purchases, partly offset by increases at other projects.  In the first six  months of 2014, the Company invested $12.5 million, or about one-third of the  total expected for the year.  Included in this forecast are certain expenditures designed to improve the  operating performance and enhance the efficiency or lower the costs of the  Company's existing portfolio.  The Company views these investments as an  attractive use of its available cash as it believes that the risk-adjusted  returns are compelling and the capital requirements are relatively modest.   The level of planned spending associated with these optimization initiatives  is approximately $17 million in 2014.  The largest of these projects is the  steam generator replacement and upgrade at Nipigon, which will occur during an  outage scheduled to begin later this month and be completed this fall.  Total  estimated cost of the Nipigon project is approximately $11 million, including  $8 million to be spent in 2014.  Other projects already completed this year  include the repowering of two turbines at Curtis Palmer and capacity uprates  at North Island, Mamquam and Calstock.  A project designed to boost output at  Morris during peak periods is under way, with the major equipment installed  and performance testing scheduled for this month.  Together with investments made in 2013 totaling $10 million, the Company  expects that optimization-related spending over the two-year period totaling  $27 million will produce incremental cash flow of at least $8 million annually  on a run-rate basis beginning in 2015.  The Company is already realizing a  portion of this benefit this year from investments completed to date.  Going forward, the Company expects that major maintenance and routine capex  will average approximately $25 million annually (versus approximately $19  million in 2014).  Although the level of optimization investments will vary  from year to year, the Company has a target of identifying approximately $5 to  $10 million of such investments annually.  Supplementary Financial Information  For further information, attached to this news release is a summary of Project  Adjusted EBITDA by segment for the three and six months ended June 30, 2014  and 2013 (Table 8) with a reconciliation to Project income (loss); a bridge  from Project Adjusted EBITDA to Cash Distributions from Projects by segment  for the six months ended June 30, 2014 (Table 9A) and the six months ended  June 30, 2013 (Table 9B); a reconciliation of Cash Distributions from Projects  and Project Adjusted EBITDA to Net income (loss) and of Free Cash Flow to cash  flows from operating activities for the three and six months ended June 30,  2014 and 2013 (Table 10); and a summary of Project Adjusted EBITDA for  selected projects (top contributors based on the Company's 2014 budget,  representing approximately 80% of total Project Adjusted EBITDA) for the three  and six months ended June 30, 2014 and 2013 (Table 11).  Financial Results of Discontinued Operations  Financial results for the three and six month periods ended June 30, 2014 and  June 30, 2013 are affected by the classification of the Company's interests in  its divested assets as discontinued operations; accordingly, the revenues,  project income, Project Adjusted EBITDA and Cash Distributions from Projects  classified as discontinued operations are excluded from results from  continuing operations.  The results of discontinued operations have been  separately stated in the Consolidated Statements of Operations as "Net income  (loss) from discontinued operations, net of tax".  The divested assets  included in discontinued operations for these periods are the Auburndale,  Lake, Pasco and Greeley projects and the Company's interests in Rollcast and  Path 15.  The cash flow attributable to discontinued operations is included in cash  flows from operating activities as shown on the Consolidated Statement of Cash  Flows; therefore, the Company's calculation of Free Cash Flow as shown herein  also includes cash flow from discontinued operations.        --  Project income (loss) from discontinued operations was $0.0         million and $(0.1) million, respectively, for the three and six         months ended June 30, 2014, compared to $(5.0) million and $         (4.1) million, respectively, for the same periods in 2013.     --  Project Adjusted EBITDA from discontinued operations was $0.0         million and $(0.1) million, respectively, for the three and six         months ended June 30, 2014, compared to $6.6 million and $38.3         million, respectively, for the same periods in 2013.     --  Cash Distributions from Projects from discontinued operations         was $0.0 million and $0.0 million, respectively, for the three         and six months ended June 30, 2014, compared to $22.5 million         and $22.6 million, respectively, for the same periods in 2013.  Delta-Person was sold in July 2014, resulting in a gain on sale of  approximately $8.6 million, of which the Company received net cash proceeds of  $7.2 million for its 40% interest in the project, with an additional $1.4  million currently held in escrow, which the Company expects will be released  12 months after the close of the transaction.  The Gregory project was sold in  August 2013.  Gregory and Delta-Person are both accounted for under the equity  method of accounting and therefore are included in the Company's financial  results from continuing operations for the relevant reporting periods rather  than being included in discontinued operations.  The Company has not reconciled non-GAAP financial measures relating to  discontinued operations to the directly comparable GAAP measures due to the  difficulty in making the relevant adjustments on an individual project basis.  Investor Conference Call and Webcast  A telephone conference call hosted by Atlantic Power's management team will be  held on Friday, August 8, 2014 at 8:30 AM ET.  An accompanying slide  presentation will be available on the Company's website prior to the call.   The telephone numbers for the conference call are: U.S. Toll Free:  1-888-317-6003; Canada Toll Free: 1-866-284-3684; International Toll: +1  412-317-6061.  Participants will need to provide access code 3658548 to enter  the conference call.  The conference call will also be broadcast over Atlantic  Power's website, with an accompanying slide presentation. Please call or log  in 10 minutes prior to the call. The telephone numbers to listen to the  conference call after it is completed (Instant Replay) are U.S. Toll Free:  1-877-344-7529; Canada Toll Free 1-855-669-9658; International Toll:  +1-412-317-0088. Please enter conference call number 10049145.  The replay  will be available 1 hour after the end of the conference call through November  7, 2014 at 9:00 AM ET. The conference call will also be archived on Atlantic  Power's website.  About Atlantic Power  Atlantic Power owns and operates a diverse fleet of power generation assets in  the United States and Canada.  Atlantic Power's power generation projects sell  electricity to utilities and other large commercial customers largely under  long-term power purchase agreements, which seek to minimize exposure to  changes in commodity prices.  Its power generation projects in operation have  an aggregate gross electric generation capacity of approximately 2,945 MW in  which its aggregate ownership interest is approximately 2,024 MW. Its current  portfolio consists of interests in twenty-eight operational power generation  projects across eleven states in the United States and two provinces in Canada.  Atlantic Power trades on the New York Stock Exchange under the symbol AT and  on the Toronto Stock Exchange under the symbol ATP.  For more information,  please visit the Company's website at www.atlanticpower.com or contact:  Atlantic Power Corporation  Amanda Wagemaker, Investor Relations (617)  977-2700  info@atlanticpower.com  Copies of certain financial data and other publicly filed documents are filed  on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml under  "Atlantic Power Corporation" or on the Company's website.  Cautionary Note Regarding Forward-looking Statements  To the extent any statements made in this news release contain information  that is not historical, these statements are forward-looking statements within  the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and  Section 21E of the U.S. Securities Exchange Act of 1934, as amended and under  Canadian securities law (collectively, "forward-looking statements").  Certain statements in this news release may constitute "forward-looking  statements", which reflect the expectations of management regarding the future  growth, results of operations, performance and business prospects and  opportunities of our Company and our projects.  These statements, which are  based on certain assumptions and describe our future plans, strategies and  expectations, can generally be identified by the use of the words "may,"  "will," "project," "continue," "believe," "intend," "anticipate," "expect" or  similar expressions that are predictions of or indicate future events or  trends and which do not relate solely to present or historical matters.   Examples of such statements in this press release include, but are not  limited, to statements with respect to the following:     --  2014 Project Adjusted EBITDA will be in the range of $280 to         $305 million;     --  2014 APLP Project Adjusted EBITDA will be in the range of $165         to $175 million;     --  2014 Free Cash Flow will be in the range of $0 to $25 million,         excluding refinancing and debt repurchase transaction costs and         principal repayment of Piedmont construction debt;     --  the Company's Free Cash Flow will improve in the remainder of         the year;     --  the Company will have positive Free Cash Flow generation in the         second half of the year;     --  the Company will reduce total debt on a net basis by         approximately $80 million this year;     --  the Company will repay the Cdn$44.8 million aggregate principal         amount of convertible debentures due October 2014 at maturity         using cash;     --  the Company will be in compliance with the financial         maintenance covenants governing its 9.0% senior unsecured         notes, APLP's senior secured credit facilities and APLP's 5.95%         Medium-Term notes, for at least the next twelve months;     --  the impact of the fixed charge coverage ratio included in the         restricted payments "basket" provision of the indenture         governing the Company's 9.0% senior unsecured notes;     --  Piedmont will be unable to pass its debt service coverage ratio         covenant for at least the next twelve months and as a result,         will not make distributions for at least the next twelve         months;     --  APLP term loan repayments for the full year will total         approximately $52 to $55 million, including repayments in the         second half that are less than first half repayments of $37.5         million, because of the timing of cash flows from APLP         projects, which are typically stronger in the winter and spring         months at certain projects, and the timing of APLP capital         expenditures, which are expected to be higher in the second         half of the year;     --  an additional $1.4 million of net cash proceeds from the sale         of Delta-Person will be released to the Company 12 months after         the close of the transaction;     --  the Company will have project capital expenditures and major         maintenance expenses of approximately $35 to $40 million in         2014, including optimization initiatives of approximately $16         million;     --  major maintenance expense and maintenance capex will average         approximately $25 million annually, versus approximately $19         million in 2014;     --  the level of optimization investments will be approximately $17         million in 2014, for a two-year (2013 and 2014) total of         approximately $27 million, and that these investments will         produce a cash flow run-rate contribution of approximately $8         million beginning in 2015, with a portion of that realized in         2014 from investments completed to date;     --  the Company will have annual optimization capex on average of         approximately $5 to $10 million; and     --  the results of operations and performance of the Company's         projects, business prospects, opportunities and future growth         of the Company will be as described herein.  Forward-looking statements involve significant risks and uncertainties, should  not be read as guarantees of future performance or results, and will not  necessarily be accurate indications of whether or not or the times at or by  which such performance or results will be achieved.  Please refer to the  factors discussed under "Risk Factors" and "Forward-Looking Information" in  the Company's periodic reports as filed with the Securities and Exchange  Commission from time to time for a detailed discussion of the risks and  uncertainties affecting our Company, including, without limitation, the  Company's ability to evaluate and/or implement a broad range of potential  options, including further selected asset sales or joint ventures to raise  additional capital for growth or potential debt reduction, the acquisition of  assets, the dividend level, as well as broader strategic options, including a  sale or merger of the Company, and the impact any such potential options may  have on the Company or the Company's stock price.   Although the  forward-looking statements contained in this news release are based upon what  are believed to be reasonable assumptions, investors cannot be assured that  actual results will be consistent with these forward-looking statements, and  the differences may be material.  These forward-looking statements are made as  of the date of this news release and, except as expressly required by  applicable law, the Company assumes no obligation to update or revise them to  reflect new events or circumstances.  The financial outlook information  contained in this news release is presented to provide readers with guidance  on the cash distributions expected to be received by the Company and to give  readers a better understanding of the Company's ability to pay its current  level of distributions into the future.  Readers are cautioned that such  information may not be appropriate for other purposes.     Atlantic Power Corporation     Table 5 - Consolidated Balance Sheets (in millions of U.S. dollars)                                                                            June 30, December 31,                                                                                2014          2013                                                                                ----          ----     Assets                                                                Unaudited     Current assets:     Cash and cash equivalents                                                $157.6        $158.6     Restricted cash                                                            17.8          96.2     Accounts receivable                                                        61.5          64.3     Current portion of derivative instruments asset                             1.7           0.2     Inventory                                                                  18.6          16.0     Prepayments and other current assets                                       15.4          16.1     Refundable income taxes                                                     2.1           4.0     -----------------------                                                     ---           ---     Total current assets                                                      274.7         355.4     Property, plant and equipment, net                                      1,751.2       1,813.4     Equity investments in unconsolidated affiliates                           368.5         394.3     Other intangible assets, net                                              420.6         451.5     Goodwill                                                                  291.1         296.3     Derivative instruments asset                                                6.3          13.0     Other assets                                                               98.3          71.1     ------------                                                               ----          ----     Total assets                                                           $3,210.7      $3,395.0     ------------                                                           --------      --------     Liabilities and Shareholder's Equity     Current liabilities:     Accounts payable                                                          $10.5         $14.0     Accrued interest                                                            6.3          17.7     Other accrued liabilities                                                  48.9          58.8     Current portion of long-term debt                                          26.4         216.2     Current portion of convertible debentures                                  42.0          42.1     Current portion of derivative instruments liability                        28.4          28.5     Dividends payable                                                           3.8           6.8     Other current liabilities                                                   8.1           5.3     -------------------------                                                   ---           ---     Total current liabilities                                                 174.4         389.4     Long-term debt                                                          1,436.0       1,254.8     Convertible debentures                                                    362.4         363.1     Derivative instruments liability                                           58.2          76.1     Deferred income taxes                                                      95.7         111.5     Power purchase and fuel supply agreement liabilities, net                  36.9          38.7     Other non-current liabilities                                              63.2          65.4     Commitments and contingencies                                                 -            -     -----------------------------                                               ---          ---     Total liabilities                                                       2,226.8       2,299.0     Equity     Common shares, no par value, unlimited authorized shares; 120,712,916   1,286.5       1,286.1     and 120,205,813 issued and outstanding at June 30, 2014 and December     31, 2013, respectively     Preferred shares issued by a subsidiary company                           221.3         221.3     Accumulated other comprehensive loss                                     (24.1)       (22.4)     Retained deficit                                                        (754.3)      (655.4)     ----------------                                                         ------        ------     Total Atlantic Power Corporation shareholders' equity                     729.4         829.6     -----------------------------------------------------                     -----         -----     Noncontrolling interests                                                  254.5         266.4     ------------------------                                                  -----         -----     Total equity                                                              983.9       1,096.0     ------------                                                              -----       -------     Total liabilities and equity                                           $3,210.7      $3,395.0         Atlantic Power Corporation     Table 6 - Consolidated Statements of Operations     (in millions of U.S. dollars, except per share amounts)     Unaudited                                                                                                                          Three months ended           Six months ended                                                                                                                                      June 30,                June 30,                                                                                                                        2014            2013      2014              2013                                                                                                                       ----            ----      ----              ----  Project revenue:  Energy sales                                                                                                        $82.4           $76.9    $164.7            $153.8  Energy capacity revenue                                                                                              41.3            42.9      74.8              77.2  Other                                                                                                                19.5            16.3      49.0              42.6  -----                                                                                                                ----            ----      ----              ----                                                                                                                      143.2           136.1     288.5             273.6  Project expenses:  Fuel                                                                                                                 50.4            50.0     110.2              97.7  Operations and maintenance                                                                                           34.5            46.4      67.2              73.9  Development                                                                                                           1.1             1.8       1.8               3.5  Depreciation and amortization                                                                                        40.9            41.8      81.5              82.7  -----------------------------                                                                                        ----            ----      ----              ----                                                                                                                      126.9           140.0     260.7             257.8  Project other income (expense):  Change in fair value of derivative instruments                                                                      (2.8)           24.3      11.9              36.9  Equity in earnings of unconsolidated affiliates                                                                       3.3             8.7      11.9              15.9  Interest expense, net                                                                                               (5.8)          (8.8)   (20.4)           (16.8)  Impairment                                                                                                         (14.8)              -   (14.8)                -                                                                                                                     (20.1)           24.2    (11.4)             36.0  Project (loss) income                                                                                               (3.8)           20.3      16.4              51.8  Administrative and other expenses (income):  Administration                                                                                                       10.2            11.8      17.5              20.1  Interest, net                                                                                                        27.7            25.3      94.1              51.2  Foreign exchange loss (gain)                                                                                         15.3          (14.5)    (1.5)           (22.0)  Other income, net                                                                                                     -          (9.5)    (2.1)            (9.5)                                                                                                                       53.2            13.1     108.0              39.8                                                                                                                       ----            ----     -----              ----  (Loss) income from continuing operations before income taxes                                                       (57.0)            7.2    (91.6)             12.0  Income tax (benefit) expense                                                                                        (0.6)            0.6    (12.9)            (1.9)  ----------------------------                                                                                         ----             ---     -----              ----  (Loss) income from continuing operations                                                                           (56.4)            6.6    (78.7)             13.9  Net loss from discontinued operations, net of tax (1)                                                                 -          (5.4)    (0.1)            (4.9)  ----------------------------------------------------                                                                  ---           ----      ----              ----  Net (loss) income                                                                                                  (56.4)            1.2    (78.8)              9.0  Net (loss) income attributable to noncontrolling interest                                                           (0.3)            1.1     (6.7)            (0.8)  Net income attributable to preferred share dividends of a subsidiary company                                          3.1             3.1       5.9               6.3  ----------------------------------------------------------------------------                                          ---             ---       ---               ---  Net (loss) income attributable to Atlantic Power Corporation                                                      $(59.2)         $(3.0)  $(78.0)             $3.5  ------------------------------------------------------------                                                      -- ----           -----    ------              ----  Basic earnings per share:  (Loss) income from continuing operations attributable to Atlantic Power Corporation                               $(0.49)          $0.02   $(0.65)            $0.07  Loss from discontinued operations, net of tax                                                                         -         (0.05)        -           (0.04)  ---------------------------------------------                                                                         ---          -----       ---            -----  Net (loss) income attributable to Atlantic Power Corporation                                                      $(0.49)        $(0.03)  $(0.65)            $0.03  Diluted earnings per share:  (Loss) income from continuing operations attributable to Atlantic Power Corporation                               $(0.49)          $0.02   $(0.65)            $0.07  Loss from discontinued operations, net of tax                                                                         -         (0.05)        -           (0.04)  ---------------------------------------------                                                                         ---          -----       ---            -----  Net (loss) income attributable to Atlantic Power Corporation                                                      $(0.49)        $(0.03)  $(0.65)            $0.03  ------------------------------------------------------------                                                      -- ----          ------    ------             -----        (1) Includes contributions from the Sold Projects and Path 15, which are a component of discontinued operations.     ----------------------------------------------------------------------------------------------------------------     Atlantic Power Corporation     Table 7 - Consolidated Statements of Cash Flows (in millions of U.S. dollars)     Unaudited                                                                                                    Six months ended                                                                                                                June  30,                                                                                         2014     2013                                                                                      ----     ----     Cash flows from operating activities:     Net (loss) income                                                             $(78.8)    $9.0     Adjustments to reconcile to net cash provided by operating activities     Depreciation and amortization                                                    81.5     92.8     Loss of discontinued operations                                                     -    32.8     Gain on sale of asset                                                           (2.1)   (4.4)     Long-term incentive plan expense                                                  0.9      1.2     Impairment charges                                                               14.8      4.9     Equity in earnings from unconsolidated affiliates                              (11.9)  (15.9)     Distributions from unconsolidated affiliates                                     37.8     18.0     Unrealized foreign exchange gain                                                (1.4)   (8.7)     Change in fair value of derivative instruments                                 (11.9)  (47.7)     Change in deferred income taxes                                                (15.5)   (6.5)     Change in other operating balances     Accounts receivable                                                               2.8    (3.6)     Inventory                                                                       (2.6)   (1.3)     Prepayments, refundable income taxes and other assets                            14.7     46.3     Accounts payable                                                                (4.6)   (9.4)     Accruals and other liabilities                                                 (18.2)  (10.6)     ------------------------------                                                  -----    -----     Cash provided by operating activities                                             5.5     96.9     Cash flows provided by investing activities     Change in restricted cash                                                        78.4   (19.4)     Proceeds from sale of asset, net                                                  1.0    148.3     Proceeds from treasury grant                                                        -    53.7     Biomass development costs                                                           -   (0.1)     Construction in progress                                                        (1.5)  (28.5)     Purchase of property, plant and equipment                                       (2.5)   (2.7)     -----------------------------------------                                        ----     ----     Cash provided by investing activities                                            75.4    151.3     Cash flows used in financing activities     Proceeds from senior secured term loan facility                                 600.0        -     Proceeds from project-level debt                                                    -    20.8     Repayment of corporate and project-level debt                                 (608.0)   (64.2)     Payments for revolving credit facility borrowings                                   -  (67.0)     Deferred financing costs                                                       (38.8)       -     Equity contribution from noncontrolling interest                                    -    44.6     Offering costs related to tax equity                                                -   (1.0)     Dividends paid to common shareholders                                          (20.9)  (43.2)     Dividends paid to noncontrolling interests                                     (14.2)   (9.3)     ------------------------------------------                                      -----     ----     Cash used in financing activities                                              (81.9) (119.3)     Net (decrease) increase in cash and cash equivalents                            (1.0)   128.9     Cash and cash equivalents at beginning of period at discontinued operations         -     6.5     Cash and cash equivalents at beginning of period                                158.6     60.2     ------------------------------------------------                                -----     ----     Cash and cash equivalents at end of period                                     $157.6   $195.6     Supplemental cash flow information     Interest paid                                                                  $114.7    $65.3     Income taxes paid, net                                                           $1.0     $1.4     Accruals for construction in progress                                            $8.2     $8.6  Regulation G Disclosures  Project Adjusted EBITDA, Cash Distributions from Projects and Free Cash Flow  are not measures recognized under GAAP and do not have standardized meanings  prescribed by GAAP.  Management believes that Free Cash Flow and Cash  Distributions from Projects are relevant supplemental measures of the  Company's ability to earn and distribute cash returns to investors.   Reconciliations of Free Cash Flow to cash flows from operating activities and  of Cash Distributions from Projects to Project income (loss) are provided in  Table 10 on page 17 of this release.  Investors are cautioned that the Company  may calculate these measures in a manner that is different from other  companies.  Free Cash Flow is defined as cash flows from operating activities less capex;  project-level debt repayments, including amortization of the new term loan;  and distributions to noncontrolling interests, including preferred share  dividends.  Project Adjusted EBITDA is defined as project income (loss) plus interest,  taxes, depreciation and amortization (including non-cash impairment charges)  and changes in fair value of derivative instruments.  Project Adjusted EBITDA  is not a measure recognized under GAAP and is therefore unlikely to be  comparable to similar measures presented by other companies and does not have  a standardized meaning prescribed by GAAP.  Management uses Project Adjusted  EBITDA at the project level to provide comparative information about project  performance and believes such information is helpful to investors.  A  reconciliation of Project Adjusted EBITDA to project income (loss) and a  bridge to Cash Distributions from Projects are provided in Table 8 below and  Tables 9A and 9B on page 16, respectively.  Investors are cautioned that the  Company may calculate this measure in a manner that is different from other  companies.     Atlantic Power Corporation     Table 8 - Project Adjusted EBITDA by Segment (in millions of U.S. dollars)     Unaudited                                                                        Three months ended June 30,                   Six months ended June 30,                                                                          2014                2013                   2014                  2013                                                                          ----                ----                  -- --                  ----  Project Adjusted EBITDA by segment  East (1)                                                               $38.5               $29.4                  $84.0                 $78.5  West (2)                                                                22.9                14.1                   34.1                  34.7  Wind                                                                    17.2                15.5                   35.1                  30.5  Un-allocated corporate (3)                                             (3.6)              (3.1)                 (3.6)                (7.6)  Total                                                                  $75.0               $55.9                 $149.6                $136.1  Reconciliation to project income  Depreciation and amortization                                           52.3                50.5                  104.7                 102.3  Interest expense, net                                                    8.6                 9.5                   24.7                  19.7  Change in the fair value of derivative   instruments                                                             3.1              (26.8)                (11.0)               (38.3)  Other (income) expense                                                  14.8                 2.4                   14.8                   0.6  Project income (loss)                                                 $(3.8)              $20.3                  $16.4                 $51.8  --------------------                                                   -----               -----                 --- --                 -----        (1) Excludes Auburndale, Lake and Pasco, which are components of discontinued operations.     (2) Excludes Greeley and Path 15, which are components of discontinued operations.     (3) Excludes Rollcast, which is a component of discontinued operations.   Note: Table 8 presents Project Adjusted EBITDA, which is not a recognized measure under GAAP and does not have any  standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to a similar   measure presented by other companies.  -------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------        Atlantic Power Corporation     Table 9A - Cash Distributions from Projects (by Segment, in millions of U.S. dollars)     Six months ended June 30, 2014 (Unaudited)     Unaudited                                                                                               Project                                         Repayment of                                Interest expense,                                     Capital                                    Other, including changes in           Cash Distributions                                                                                                             Adjusted                                       long-term debt                                      net                                         expenditures                                        working capital                    from Projects                                                                                                              EBITDA     ---                                                                                                      ------     Segment     East       Consolidated                                                                                                                $60.3                                             $(9.4)                                     $(9.9)                                                $(0.6)                                           $24.2                        $64.6       Equity method                                                                                                                23.7                                              (3.3)                                      (5.4)                                                 (0.6)                                             1.7                         16.1                                                                                                                                    ----                                               ----                                        ----                                                 ----                                              ---                         --- -          Total                                                                                                                        84.0                                             (12.7)                                     (15.3)                                                 (1.2)                                            25.9                         80.7                                                                                                                                    ----                                              -----                                       -----                                                 ----                                             ----                         --- -        West       Consolidated                                                                                                                 26.6                                                  -                                          -                                                 (0.8)                                           (1.7)                        24.1       Equity method                                                                                                                 7.5                                              (1.0)                                          -                                                     -                                             0.3                          6.8                                                                                                                                     ---                                               ----                                         ---                                                   ---                                             ---                          ---       Total                                                                                                                        34.1                                              (1.0)                                          -                                                 (0.8)                                           (1.4)                        30.9                                                                                                                                    ----                                               ----                                         ---                                                  ----                                             ----                         ----     Wind       Consolidated                                                                                                                 29.7                                              (3.5)                                      (7.1)                                                 (0.3)                                             2.5                         21.3       Equity method                                                                                                                 5.4                                              (2.9)                                      (2.3)                                                   0.2                                              2.4                          2.8                                                                                                                                     ---                                               ----                                        ----                                                  ---                                              ---                          -- -          Total                                                                                                                        35.1                                              (6.4)                                      (9.4)                                                 (0.1)                                             4.9                         24.1       -----                                                                                                                        ----                                               ----                                        ----                                                 ----                                              ---                         --- -          Total consolidated                                                                                                          116.6                                             (12.9)                                     (17.0)                                                 (1.7)                                            25.0                        110.0       Total equity method                                                                                                          36.6                                              (7.2)                                      (7.7)                                                 (0.4)                                             4.4                         25.7     Un-allocated corporate                                                                                                        (3.6)                                                 -                                          -                                                 (0.9)                                             4.5                            -     ----------------------                                                                                                         ----                                                ---                                        ---                                                  ----                                              ---                          ---     Total                                                                                                                        $149.6                                            $(20.1)                                    $(24.7)                                                $(3.0)                                           $33.9                       $135.7     -----                                                                                                                        ------                                             ------                                      ------                                                -----                                            -----                       ----- -  Note: Table 9A presents Cash Distributions from Projects and Project Adjusted EBITDA, which are not recognized  measures under GAAP and do not have any standardized meanings prescribed by GAAP; therefore, these measures may not be  comparable to similar measures presented by other companies.  -------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------        Atlantic Power Corporation     Table 9B - Cash Distributions from Projects (by Segment, in millions of U.S. dollars)     Six months ended June 30, 2013 (Unaudited)                                                                                                   Project Adjusted  EBITDA                                Repayment of                                    Interest                                      Capital expenditures                              Other, including changes in           Cash Distributions                                                                                                                                                          long-term debt                                   expense,                                                                                           working capital                    from Projects                                                                                                                                                                                                              net                                                                                                                                                                                       ---                                                                                                                                                                          ---     Segment     East       Consolidated                                                                                                                $53.8                                             $(2.7)                                     $(8.1)                                                $(1.3)                                           $14.9                        $56.6       Equity method                                                                                                                24.7                                              (7.0)                                      (1.2)                                                     -                                             2.6                         19.1                                                                                                                                    ----                                               ----                                        ----                                                    ---                                             ---                         ----       Total                                                                                                                        78.5                                              (9.7)                                      (9.3)                                                 (1.3)                                            17.5                         75.7                                                                                                                                    ----                                               ----                                        ----                                                 ----                                             ----                         --- -        West       Consolidated                                                                                                                 26.2                                                  -                                          -                                                 (0.8)                                          (12.0)                        13.4       Equity method                                                                                                                 8.5                                              (1.6)                                      (0.1)                                                 (0.4)                                             0.1                          6.5                                                                                                                                     ---                                               ----                                        ----                                                 ----                                              ---                          -- -          Total                                                                                                                        34.7                                              (1.6)                                      (0.1)                                                 (1.2)                                          (11.9)                        19.9                                                                                                                                    ----                                               ----                                        ----                                                 ----                                            -----                         --- -        Wind       Consolidated                                                                                                                 25.5                                              (4.9)                                      (7.4)                                                 (2.3)                                           (4.2)                         6.7       Equity method                                                                                                                 5.0                                              (1.1)                                      (2.4)                                                 (0.1)                                             0.3                          1.7                                                                                                                                     ---                                               ----                                        ----                                                 ----                                              ---                          -- -          Total                                                                                                                        30.5                                              (6.0)                                      (9.8)                                                 (2.4)                                           (3.9)                         8.4       -----                                                                                                                        ----                                               ----                                        ----                                                 ----                                             ----                          -- -          Total consolidated                                                                                                          105.5                                              (7.6)                                     (15.5)                                                 (4.4)                                           (1.3)                        76.7       Total equity method                                                                                                          38.2                                              (9.7)                                      (3.7)                                                 (0.5)                                             3.0                         27.3     Un-allocated corporate                                                                                                        (7.6)                                                 -                                      (1.3)                                                     -                                             8.9                            -     ----------------------                                                                                                         ----                                                ---                                       ----                                                    ---                                             ---                          ---     Total                                                                                                                        $136.1                                            $(17.3)                                    $(20.5)                                                $(4.9)                                           $10.6                       $104.0     -----                                                                                                                        ------                                             ------                                      ------                                                -----                                            -----                       ----- -  Note: Table 9B presents Cash Distributions from Projects and Project Adjusted EBITDA, which are not recognized  measures under GAAP and do not have any standardized meanings prescribed by        GAAP; therefore, these measures may not be comparable to similar measures presented by other companies.     -------------------------------------------------------------------------------------------------------        Atlantic Power Corporation     Table 10 - Free Cash Flow (in millions of U.S. dollars)     Unaudited                                                                                                                                                                                                        Three months ended           Six months  ended                                                                                                                                                                                                              June 30,                    June 30,                                                                                                                                                                                                2014              2013      2014               2013                                                                                                                                                                                                ----              ----      ----               ----  Cash Distributions from Projects                                                                                                                                                             $85.3             $50.1    $135.7             $104.0  Repayment of long-term debt                                                                                                                                                                  (8.4)           (11.7)   (20.1)            (17.3)  Interest expense, net                                                                                                                                                                        (8.5)           (11.1)   (24.7)            (20.5)  Capital expenditures                                                                                                                                                                         (1.3)            (2.7)    (3.0)             (4.9)  Other, including changes in working capital                                                                                                                                                   28.5              19.7      33.9               10.6  -------------------------------------------                                                                                                                                                   ----              ----      ----               ----  Project Adjusted EBITDA                                                                                                                                                                      $75.0             $55.9    $149.6             $136.1  Depreciation and amortization                                                                                                                                                                 52.3              50.5     104.7              102.3  Interest expense, net                                                                                                                                                                          8.6               9.5      24.7               19.7  Change in the fair value of derivative instruments                                                                                                                                             3.1            (26.8)   (11.0)            (38.3)  Other (income) expense                                                                                                                                                                        14.8               2.4      14.8              0.6  Project (loss) income                                                                                                                                                                       $(3.8)            $20.3     $16.4              $51.8  Administrative and other expenses (income)                                                                                                                                                    53.2              13.1     108.0               39.8  Income tax (benefit) expense                                                                                                                                                                 (0.6)              0.6    (12.9)             (1.9)  Net loss from discontinued operations, net of tax                                                                                                                                                -            (5.4)    (0.1)             (4.9)  Net (loss) income                                                                                                                                                                          $(56.4)             $1.2   $(78.8)              $9.0  Adjustments to reconcile to net cash provided by operating                                                                                                                                    95.6              18.1      92.2               66.5        activities     Change in other operating balances                                                                                                                                                            (5.2)           (12.1)    (7.9)              21.4  Cash flows from operating activities                                                                                                                                                         $34.0              $7.2      $5.5              $96.9  Term loan facility repayments (1)                                                                                                                                                           (37.5)                -   (37.5)                 -  Project-level debt repayments                                                                                                                                                                (5.5)            (7.9)   (15.4)            (10.5)  Purchases of property, plant and equipment (2)                                                                                                                                                 0.1             (1.7)    (2.5)             (2.7)  Distributions to noncontrolling interests (3)                                                                                                                                                (3.1)            (2.0)    (5.2)             (2.9)  Dividends on preferred shares of a subsidiary company                                                                                                                                        (3.1)            (3.1)    (5.9)             (6.3)  -----------------------------------------------------                                                                                                                                         ----              ----      ----               ----  Free Cash Flow                                                                                                                                                                             $(15.1)           $(7.5)  $(61.0)             $74.5  (1) Includes mandatory 1% annual amortization and 50% excess cash flow repayments by the Partnership.  (2) Excludes construction costs related to our Canadian Hills project in 2014 and 2013 and our Piedmont and Meadow  Creek projects in 2013.  (3) Distributions to noncontrolling interests primarily include distributions, if any, to the tax equity investors  at Canadian Hills and to the other 50% owner of Rockland.  Note: Table 10 presents Cash Distributions from Projects, Project Adjusted EBITDA and Free Cash Flow, which are not  recognized measures under GAAP and do not have any standardized meanings  prescribed by GAAP; therefore, these measures may not be comparable to similar measures presented by other  companies.  -------------------------------------------------------------------------------------------------------------------- -             Atlantic Power Corporation     Table 11 - Project Adjusted EBITDA      by Project (for Selected      Projects)     (in millions of U.S. dollars)     Unaudited                                                                      Three months ended    Six months ended                                                                                June 30,            June 30,                                                                         2014        2013    2014         2013                                                                         ----        ----    ----         ----     East                                               Accounting     Cadillac                                           Consolidated     $1.2        $2.4    $3.2         $4.6     Curtis Palmer                                      Consolidated     12.1        11.4    18.7         18.7     Morris                                             Consolidated      2.8         1.0     6.6          2.1     Nipigon                                            Consolidated      2.8         2.3     8.7          8.6     North Bay                                          Consolidated      1.2       (0.8)    6.1          4.5     Piedmont                                           Consolidated      2.2         0.1     0.8          0.1     Tunis                                              Consolidated      1.0       (0.8)    5.8          4.1     Other (1)                                          Consolidated      3.4         2.8    10.4         11.1     Chambers                                           Equity method     4.0         4.3     9.8         10.2     Selkirk                                            Equity method     4.2         4.4     9.1         10.1     Orlando                                            Equity method     3.6         2.3     4.8          4.4                                                                          ---         ---     ---          ---     Total                                                               38.5        29.4    84.0         78.5     West     Manchief                                           Consolidated      3.5         3.9     7.2          7.9     Naval Station                                      Consolidated      3.5         3.1     4.8          4.5     Williams Lake                                      Consolidated      2.8       (0.3)    6.8          8.4     Other (2)                                          Consolidated      9.5         3.0     7.8          5.4     Frederickson                                       Equity method     2.6         2.8     5.9          5.9     Other (3)                                          Equity method     1.0         1.6     1.6          2.6                                                                          ---         ---     ---          ---     Total                                                               22.9        14.1    34.1         34.7     Wind     Canadian Hills                                     Consolidated      8.1         7.8    13.8         14.5     Meadow Creek                                       Consolidated      4.2         3.5    10.2          6.5     Rockland                                           Consolidated      2.3         2.0     5.7          4.5     Other (4)                                          Equity method     2.6         2.2     5.4          5.0                                                                          ---         ---     ---          ---     Total                                                               17.2        15.5    35.1         30.5     Totals     Consolidated projects                                               60.6        41.4   116.6        105.5     Equity method projects                                              18.0        17.6    36.6         38.2     Un-allocated corporate                                             (3.6)      (3.1)  (3.6)       (7.6)     ----------------------                                              ----        ----    ----         ----     Total Project Adjusted EBITDA                                      $75.0       $55.9  $149.6       $136.1     Reconciliation to project income (loss)     Depreciation and amortization                                      $52.3       $50.5  $104.7       $102.3     Interest expense, net                                                8.6         9.5    24.7         19.7     Change in the fair value of derivative instruments                   3.1      (26.8) (11.0)      (38.3)     Other (income) expense                                              14.8         2.4    14.8          0.6     Project income (loss)                                             $(3.8)      $20.3   $16.4        $51.8     --------------------                                               -----       -----   -----        -----     (1) Kenilworth, Calstock, and Kapuskasing     (2) Moresby Lake, Mamquam, North Island, Naval Training Station, and Oxnard     (3) Q2 and YTD June 2013: Koma Kulshan, Gregory, and Delta-Person; Q2 and YTD June 2014:  Koma Kulshan     and Delta-Person     (4) Idaho Wind and Goshen North     Notes: Table 11 presents Project Adjusted EBITDA, which is not a recognized measure under GAAP and does not have   any standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to a similar measure  presented  by other companies. The Company has not reconciled non-GAAP financial measures relating to individual projects to  the directly  comparable GAAP measures due to the difficulty in making the relevant adjustments on an individual project basis.  -----------------------------------------------------------------------------------------------------------------  Logo - http://photos.prnewswire.com/prnh/20110809/NE49346LOGO    SOURCE  Atlantic Power Corporation  CO: Atlantic Power Corporation ST: Massachusetts NI: UTI OIL ERN EST ERN CONF  
Press spacebar to pause and continue. Press esc to stop.