Algonquin Power & Utilities Corp. Announces 2014 Second Quarter Financial
Results and Significant Progress on Development Projects
OAKVILLE, ON, August 14, 2014
OAKVILLE, ON, August 14, 2014 /PRNewswire/ -Algonquin Power & Utilities Corp.
(TSX: AQN) ("APUC"), today announced financial results for the second quarter
ended June30, 2014.
oFor 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 of 2013.
oAPUC 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.
oAPUC reported adjusted net earnings^1 of $16.5 million or $0.07 per share
in the second quarter of 2014 compared to adjusted net earnings^1 of $14.9
million or $0.07 per share in the second quarter of 2013. APUC reported
adjusted net earnings^1 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.
oAdjusted 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 EBITDA^1 of $164.8 million compared to $119.5 million for the
first six months of 2013. The increase in Adjusted EBITDA^1 is primarily
due to acquisitions completed in 2013, the impact of rate case settlements
in the utilities business, and a stronger U.S. dollar.
oOn 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
oDuring the quarter, significant progress was achieved on the advancement
of several of APUC's power development projects.
oCornwall Solar, APUC's first solar generating station, recorded a
full quarter of commercial operations, generating total revenue of
oConstruction 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 2015.
oConstruction 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.
oDevelopment 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.
oDuring 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 Company.
oOn 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.
oOn 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
billionportfolio of regulated and non-regulated utilities inNorth 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 atwww.AlgonquinPowerandUtilities.comand follow us on
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.
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.
Contact: Kelly Castledine, Algonquin Power & Utilities Corp., 2845 Bristol
Circle, Oakville, Ontario, L6H 7H7, Telephone: (905) 465-4500, Website:
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