Algonquin Power & Utilities Corp. Announces Second Quarter 2012 Financial Results
OAKVILLE, ON, Aug. 9, 2012 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC”) (TSX: AQN), today announced financial results for the second
quarter ended June 30, 2012.
Financial Highlights:
-- For the second quarter of 2012, revenue was $65.4 million as
compared to $66.8 million in the second quarter of 2011. The
decrease in revenue over the same period in 2011 is primarily
the result of lower hydrology at Algonquin Power Co.'s ("APCo")
hydro facilities, the impact of challenging market conditions
at APCo's Windsor Locks co-generation facility, lower
electricity sales from Liberty Utilities (West), and the Sanger
co-generation facility being off-line for planned major
maintenance. For the first six months of 2012, APUC generated
revenue of $129.8 million as compared to $138.5 million in the
first six months of 2011.
-- Adjusted EBITDA was $24.9 million in the second quarter of 2012
as compared to $28.2 million in the second quarter of 2011. The
decrease in adjusted EBITDA is primarily related to lower
results from operations as a result of lower hydrology in
APCo's renewable energy division and reduced energy sales at
APCo's Windsor Locks facility. APUC generated adjusted EBITDA
of $48.1 million for the first six months of 2012 as compared
to $55.1 million for the first six months of 2011.
-- APUC reported adjusted net earnings of $6.9 million or $0.05
per share in the second quarter of 2012 as compared to adjusted
net earnings of $8.2 million or $0.07 per share in the second
quarter of 2012. For the first six months of 2012, APUC
reported adjusted net earnings of $12.4 million or $0.09 per
share as compared to $13.5 million or $0.13 per share for the
first six months of 2011.
Performance, Operational, and Growth Highlights:
-- In the second quarter of 2012, APCo's Manitoba, Saskatchewan,
Western and Maritimes regions experienced resources slightly
higher than long-term averages resources, with production
between 2%-8% above expected production based on long-term
average resources, while the Quebec region production was
consistent with long-term averages resources. The production
within Ontario, New England, and New York regions was
approximately 13%-34% below expected production based on
long-term average resources.
-- During the second quarter, the rate regulated water businesses
owned by Liberty Utilities Co. ("Liberty Utilities")
experienced revenue increases in both its water distribution
and wastewater treatment business of 2% and 7% respectively.
The increases are primarily due to increased residential
consumption and the inclusion of operating results from the
acquisition of certain utilities in Missouri.
-- Also during the second quarter, revenue from net energy sales
generated by Liberty Utilities' California electric utility
totalled U.S. $6.1 million as compared to U.S. $6.9 million in
the same period of 2011. The decrease in revenue is primarily
a result of lower customer energy consumption.
-- On May 31, 2012, APCo successfully negotiated an increase to
its available credit under its banking facility from $120
million to $155 million. The increased facility will be
sufficient to fund the requirements and working capital needs
associated with APCo's planned capital commitments for 2012.
-- During the second quarter, Liberty Utilities received
commitments for a U.S. $225 million private placement debt
financing. The notes are senior unsecured notes with an average
life maturity of over ten years and a weighted average coupon
of 4.38%. The notes have been assigned a rating of "BBB high"
by DBRS Limited. The financing closed subsequent to the quarter
with the proceeds used to partially fund the New Hampshire and
Midwest Gas Utilities acquisitions as noted below.
-- On July 1, 2012, APCo completed the acquisition of a 51%
interest in the 50 MW Sandy Ridge Wind Project ("Sandy Ridge"),
from Gamesa Corporación Tecnológica, S.A. ("Gamesa") in the
United States. Total consideration paid for the acquisition of
the interest in Sandy Ridge is approximately U.S. $29.7
million. The interest in Sandy Ridge is being acquired through
a partnership whose members include APCo's subsidiary (holding
a 51% controlling interest) and Gamesa (holding a 49%
interest).
-- Subsequent to the end of the quarter, Liberty Utilities
completed the acquisition of all issued and outstanding shares
of Granite State and EnergyNorth, both from National Grid, for
consideration of U.S. $285.0 million plus working capital and
other closing adjustments for a total purchase price of U.S.
$293.6 million.
-- On August 1, 2012, Liberty Utilities completed its acquisitions
of regulated natural gas distribution utility assets located in
Missouri, Iowa, and Illinois from Atmos Energy Corporation
("Atmos") for consideration of U.S. $123.9 million plus working
capital and other closing adjustments for a total purchase
price of U.S. $128.9 million.
-- Subsequent to the end of the quarter, on July 20, 2012, Liberty
Utilities entered into an agreement with United Waterworks Inc.
to acquire all issued and outstanding shares of a regulated
water distribution utility located in Pine Bluff, Arkansas
serving approximately 17,300 customers. Total purchase price is
approximately U.S. $28.6 million representing a 1.16x premium
to expected closing rate base of U.S. $24.6 million and subject
to certain working capital and other closing adjustments.
Closing of the transaction is subject to certain conditions
including state and federal regulatory approval, and is
expected to occur in 2013.
-- On August 8, 2012, Liberty Utilities entered into an agreement
with Atmos to acquire the regulated natural gas distribution
utility assets (the "Georgia Utility") serving approximately
64,000 customers located in the State of Georgia. Total
purchase price for the Georgia Utility is approximately U.S.
$140.7 million representing a 1.1x premium to rate base of U.S.
$128.1 million and is subject to certain working capital and
other closing adjustments. Closing of the transaction is
subject to certain conditions including state and federal
regulatory approval, and is expected to occur in 2013.
“The second quarter saw continued below average hydrology in the
Northeast which impacted our hydro operations, however, the overall
impact to our financial results was minimized due to the benefit of our
diverse asset base,” commented Chief Executive Officer Ian Robertson.
“Commencing in the third quarter, our business has grown significantly
in both the utilities and power divisions with Liberty Utilities’
closing the regulated utility acquisitions in New Hampshire and the
Mid-West, and the acquisition by APCo of an interest in the 50MW Sandy
Ridge Wind Project. Our focus now turns to integrating these
acquisitions into our business and delivering on their growth in
earnings and cash flow potential.”
APUC’s supplemental information is available on the web site at www.algonquinpowerandutilities.com by using the Quarterly Reports link in the Top Links section of the
home page.
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, August 10, 2012, hosted by Chief Executive Officer, Ian
Robertson and Chief Financial Officer, David Bronicheski.
Conference call details are as follows:
Date: Friday, August 10, 2012
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4860 or Local 416-644-3416.
Conference ID#: 4551110
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4551110# from August 10, 2012 until August
24, 2012.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified
portfolio of $1.7 billion of clean renewable electric generation and
sustainable utility distribution businesses in North America. Liberty
Utilities Co., the company’s regulated distribution utility business,
provides regulated water, electricity and natural gas utility services
to more than 335,000 customers with a portfolio of 27 distribution
utility systems. Pursuant to previously announced agreements, Liberty
Utilities Co. is committed to acquiring certain regulated natural gas
and water distribution utility assets in Georgia and Arkansas
respectively, which together serve over 80,000 customers. Algonquin
Power Co., the company’s electric generation subsidiary, includes 46
renewable energy facilities and 12 thermal energy facilities
representing more than 480 MW of installed capacity. Algonquin Power &
Utilities Corp. and its operating subsidiaries deliver 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
convertible debentures are traded on the Toronto Stock Exchange under
the symbols AQN and AQN.DB.B. Visit Algonquin Power & Utilities Corp.
at www.AlgonquinPowerandUtilities.com.
Caution Regarding Forward-Looking Information
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.
SOURCE Algonquin Power & Utilities Corp.
