Algonquin Power & Utilities Corp. Announces 2014 Second Quarter Financial
Results and Significant Progress on Development Projects
OAKVILLE, ON, August 14, 2014 /CNW/ - Algonquin Power & Utilities Corp. (TSX:
AQN) ("APUC"), today announced financial results for the second quarter ended
June 30, 2014.
-- For the second quarter of 2014, revenue was $189.3 million
compared to $148.8 million in the second quarter of 2013. The
increase in revenue over the same period in 2013 is primarily
the result of regulated utility acquisitions including Peach
State Gas, New England Gas, and Pine Bluff Water, higher
customer demand at EnergyNorth Gas, higher rates at Granite
State Electric, and the impact of the stronger U.S. dollar. For
the first six months of 2014, APUC generated revenue of $532.4
million as compared to $342.1 million in the first six months
-- APUC reported net earnings from continuing operations of $15.3
million or $0.06 per share in the second quarter of 2014
compared to net earnings from continuing operations of $15.8
million or $0.07 per share in the second quarter of 2013. APUC
reported net earnings from continuing operations of $50.9
million or $0.22 per share as compared to $36.1 million or
$0.16 per share for the first six months of 2013.
-- APUC reported adjusted net earnings1) of $16.5 million or $0.07
per share in the second quarter of 2014 compared to adjusted
net earnings1) of $14.9 million or $0.07 per share in the
second quarter of 2013. APUC reported adjusted net earnings1)
of $53.3 million or $0.24 per share as compared to $34.5
million or $0.16 per share for the first six months of 2013.
-- Adjusted Earnings Before Interest, Taxes, Depreciation &
Amortization ("Adjusted EBITDA"1)) was $66.4 million in the
second quarter of 2014 compared to $56.4 million in the second
quarter of 2013. APUC reported Adjusted EBITDA1) of $164.8
million compared to $119.5 million for the first six months of
2013. The increase in Adjusted EBITDA1) is primarily due to
acquisitions completed in 2013, the impact of rate case
settlements in the utilities business, and a stronger U.S.
-- On August 14, 2014, APUC's Board of Directors approved a
dividend increase from a total annual dividend of CDN $0.34 to
a total annual dividend of U.S. $0.35, paid quarterly at a rate
of U.S. $0.0875 per common share. Based on the Bank of Canada
noon U.S. dollar exchange rate as of August 14, 2014, the
change in dividend is an equivalent dividend of CDN $0.382
which represents an approximate 12.4% annual increase. The
change in the currency of the dividend better aligns APUC's
dividend policy with the currency profile of its cash flows,
which are predominantly generated in the U.S.
-- During the quarter, significant progress was achieved on the
advancement of several of APUC's power development projects.
o Cornwall Solar, APUC's first solar generating station,
recorded a full quarter of commercial operations, generating
total revenue of $2.4 million.
o Construction of APUC's second solar generating station in
Bakersfield, California began during the quarter. The project
is expected to commence operations in late 2014 or early
o Construction is well advanced at the 24 MW St. Damase wind
generating station in Quebec. The project is expected to
commence operations early in the first quarter of 2015.
o Development of the 23 MW Morse Wind generating station in
Saskatchewan continued to progress in the second quarter.
Construction has now started with the project expected to
commence operations in the first half of 2015.
-- During the quarter, APUC received approval from the Georgia
Public Service Commission for an annual revenue increase of
U.S. $4.7 million at the Peach State Gas System. Additionally,
an annual rate increase of U.S. $1.8 million was granted by the
Arizona Corporation Commission for the Litchfield Park Service
-- On May 30, 2014 APUC's regulated utility business acquired the
assets of the White Hall Water System, a regulated water
distribution and wastewater treatment utility located in White
Hall, Arkansas. The system serves a total of approximately
4,300 customers. The total purchase price for the White Hall
Water System assets was approximately U.S. $4.5 million.
-- On July 31, 2014, Algonquin Power Co. increased the credit
available under the senior unsecured credit facility to $350
million from $200 million. The larger facility will be used to
provide additional liquidity in support of Algonquin Power
Co.'s development project pipeline.
"Successful execution on our growth strategy has contributed to our strong
financial performance in second quarter results, and has allowed our board to
increase our dividend by over 12% beginning this quarter," said Ian Robertson,
Chief Executive Officer. "I am pleased that we have made significant progress
on our St. Damase Wind, Morse Wind and Bakersfield Solar facilities in the
second quarter which are expected to bring nearly 70 MW of new renewable power
generation to our portfolio in early 2015. We are investing half a billion
dollars in our business this year which will allow us to continue to deliver
increasing earnings and cash flow to our shareholders."
APUC's supplemental information is available on the web site at
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, August 15, 2014, hosted by Chief Executive Officer, Ian Robertson and
Chief Financial Officer, David Bronicheski.
Conference call details: Date: Friday, August 15, 2014 Start Time: 10:00 a.m.
eastern Phone Number: Toll free within North America: 1-866-530-1553 or Local
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-888-203-1112 or
647-436-0148 access code 6907730 from August 15, 2014 until August 29, 2014.
About Algonquin Power & Utilities Corp. Algonquin Power & Utilities owns and
operates a diversified $3.6 billion portfolio of regulated and non-regulated
utilities in North America. The regulated utility business provides water,
electricity and natural gas utility services to 485,000 customers through a
portfolio of regulated generation, transmission and distribution utility
systems. The non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities representing more
than 1,100 MW of installed capacity. Algonquin Power & Utilities delivers
continuing growth through an expanding pipeline of renewable power and clean
energy projects, organic growth within its regulated utilities and the pursuit
of accretive acquisition opportunities. Common shares and preferred shares are
traded on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A and
AQN.PR.D. Visit Algonquin Power & Utilities at
www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information and non-GAAP Financial Measures
Certain statements included in this news release contain information that is
forward-looking within the meaning of certain securities laws, including
information and statements regarding prospective results of operations,
financial position or cash flows. These statements are based on factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they require
making assumptions and involve inherent risks and uncertainties. APUC cautions
that although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the possibility that
actual results may differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set out in the
management's discussion and analysis section of APUC's most recent annual
report, quarterly report, and APUC's Annual Information Form. Given these
risks, undue reliance should not be placed on these forward-looking
statements, which apply only as of their dates. Other than as specifically
required by law, APUC undertakes no obligation to update any forward-looking
statements or information to reflect new information, subsequent or otherwise.
(1) Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures The
terms "adjusted net earnings" and Adjusted EBITDA, are used in this press
release. The terms "adjusted net earnings" and Adjusted EBITDA are not
recognized measures under GAAP. There is no standardized measure of "adjusted
net earnings" and Adjusted EBITDA, consequently APUC's method of calculating
these measures may differ from methods used by other companies and therefore
may not be comparable to similar measures presented by other companies. A
calculation and analysis of "adjusted net earnings" and Adjusted EBITDA can be
found in the Management's Discussion & Analysis for the quarter ended June 30,
Adjusted net earnings Adjusted net earnings is a non-GAAP metric used by many
investors to compare net earnings from operations without the effects of
certain volatile primarily non-cash items that generally have no current
economic impact or items such as acquisition expenses or litigation expenses
and are viewed as not directly related to a company's operating performance.
Net earnings of APUC can be impacted positively or negatively by gains and
losses on derivative financial instruments, including foreign exchange forward
contracts, interest rate swaps and energy forward purchase contracts as well
as to movements in foreign exchange rates on foreign currency denominated debt
and working capital balances. Adjusted weighted average shares outstanding
represents weighted average shares outstanding adjusted to remove the dilution
effect related to shares issued in advance of funding requirements. APUC uses
adjusted net earnings to assess its performance without the effects of (as
applicable): gains or losses on foreign exchange, foreign exchange forward
contracts, interest rate swaps, acquisition costs, litigation expenses and
write down of intangibles and property, plant and equipment, earnings or loss
from discontinued operations and other typically non-recurring items as these
are not reflective of the performance of the underlying business of APUC. APUC
believes that analysis and presentation of net earnings or loss on this basis
will enhance an investor's understanding of the operating performance of its
businesses. It is not intended to be representative of net earnings or loss
determined in accordance with GAAP.
Adjusted EBITDA EBITDA is a non-GAAP metric used by many investors to compare
companies on the basis of ability to generate cash from operations. APUC uses
these calculations to monitor the amount of cash generated by APUC as compared
to the amount of dividends paid by APUC. APUC uses Adjusted EBITDA to assess
the operating performance of APUC without the effects of (as applicable):
depreciation and amortization expense, income tax expense or recoveries,
acquisition costs, litigation expenses, interest expense, gain or loss on
derivative financial instruments, write down of intangibles and property,
plant and equipment, earnings attributable to non-controlling interests and
gain or loss on foreign exchange, earnings or loss from discontinued
operations and other typically non-recurring items. APUC adjusts for these
factors as they may be non-cash, unusual in nature and are not factors used by
management for evaluating the operating performance of the company. APUC
believes that presentation of this measure will enhance an investor's
understanding of APUC's operating performance. Adjusted EBITDA is not intended
to be representative of cash provided by operating activities or results of
operations determined in accordance with GAAP.
SOURCE Algonquin Power & Utilities Corp.
Kelly Castledine, Algonquin Power & Utilities Corp., 2845 Bristol Circle,
Oakville, Ontario, L6H 7H7, Telephone: (905) 465-4500, Website:
To view this news release in HTML formatting, please use the following URL:
CO: Algonquin Power & Utilities Corp.
NI: OIL ERN CONF
-0- Aug/14/2014 22:53 GMT
Press spacebar to pause and continue. Press esc to stop.