Atlantic Power Corporation Releases Third Quarter 2012 Results and
Announces $225 million in Tax Equity Commitments for Canadian Hills
Wind
BOSTON, Nov. 5, 2012 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today released its results for the three and nine month
periods ended September 30, 2012, and
announced $225 million in tax equity
commitments were executed for its Canadian Hills Wind
project.
All amounts are in U.S. dollars unless otherwise indicated.
Cash Available for Distribution, Payout Ratio, 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 GAAP reconciliation of "Cash Available for
Distribution", "Payout Ratio" and "Project Adjusted EBITDA" as used
in this news release.
Highlights
- Cash flows from operating activities for the three months ended
September 30, 2012 increased by
$13.1 million, or 61%, from the
comparable period in 2011, primarily due to the increased cash
flows from the 18 projects of Atlantic Power Limited Partnership
(the "Partnership"), following Atlantic Power's acquisition of the
Partnership one year ago
- Project Adjusted EBITDA for the three months ended September 30, 2012 increased by $43.3 million, or 128%, from the comparable
period in 2011, primarily due to the increased Project Adjusted
EBITDA from the 18 Partnership projects
- Canadian Hills Wind is progressing on schedule and within
budget to achieve its Commercial Operation Date ("COD") in December
and firm commitments were executed with four investors for
$225 million of tax equity
- Piedmont Green Power remains within budget and on track to
achieve its COD in December
- The Company completed the sale of its 50% ownership interest in
the Badger Creek project and has placed its interests in three
additional non-core assets in the market for sale: Gregory,
Delta Person and Path 15
"We are pleased to report another solid quarter of operating
results, as well as the commitment of $225
million from tax equity investors for our Canadian Hills
Wind project, which is on budget and on schedule to achieve COD by
the end of the year," said Barry
Welch, President and CEO of Atlantic Power. "Turbine
completions at Canadian Hills have advanced to the point that we
expect power sales under one of the project's five power purchase
agreements will commence this week. In addition, our Piedmont
Green Power biomass project is in its testing phase and has
synchronized with the grid. Piedmont is also expected to achieve COD by
the end of the year and is within budget and on
schedule."
Operating Performance
Cash flows from operating
activities increased by $13.1
million, or 61% to $34.7
million for the quarter ended September 30, 2012, compared to $21.6 million for the same period in 2011.
Cash flows from operating activities increased by $57.8 million, or 87%, to $124.1 million for the nine months ended
September 30, 2012, compared to
$66.3 million for the same period in
2011. These increases over the prior year periods are
primarily due to contributions from the 18 Partnership
projects.
Project income increased by $35.8
million, or 164%, to $38.0
million for the quarter ended September 30, 2012, compared to $2.2 million for the same period in 2011.
Project income decreased by $2.5
million, or 10%, to $23.7
million for the nine months ended September 30, 2012, compared to $26.2 million for the same period in 2011.
Project income can fluctuate significantly due to impacts from the
non-cash mark-to-market fair value of derivatives.
Project Adjusted EBITDA, including earnings from equity
investments, increased by $43.3 million, or 128%, to $77.2 million for the quarter ended September 30, 2012, compared to $33.9 million for the same period in 2011.
Project Adjusted EBITDA, including earnings from equity
investments, increased by $132.9 million, or 134%, to $231.8 million for the nine months ended
September 30, 2012, compared to
$98.9 million for the same period in
2011. These increases over the prior year periods are
primarily due to contributions from the 18 Partnership
projects.
Project Adjusted EBITDA for the three and nine months ended
September 30, 2012 does not include
Project Adjusted EBITDA for Path 15, as the project is being held
for sale. The results for Path 15 have been separated out of
the Consolidated Statements of Operations as "Income from
discontinued operations." Project Adjusted EBITDA for Path 15
for the three and nine months ended September 30, 2012 was $6.7 million and $17.3
million, respectively.
Cash Available for Distribution and Payout Ratio
For
the three and nine months ended September
30, 2012, cash flows from operating activities increased by
$13.1 million and $57.8 million, respectively, compared to the same
periods in 2011. For the three and nine months ended
September 30, 2012, Cash Available
for Distribution increased by $1.3
million and $39.5 million,
respectively, compared to the same periods in 2011.
For the three months ended September 30,
2012, the Payout Ratio associated with the dividend was
120%, compared to 70% in the comparable prior year period.
The Payout Ratio for the quarter was negatively impacted by the
timing of the payment of $26 million
in receivables from two offtakers at the Company's projects.
Payment of these receivables did not occur until the first week of
October, resulting in a reduction of working capital for the third
quarter.
For the nine months ended September 30,
2012, the Payout Ratio associated with the dividend was 98%
compared to 93% in the comparable prior year period. The
Payout Ratio for the nine months ended September 30, 2012 was positively impacted by the
termination of a management services contract in connection with
the sale of the Company's interest in Primary Energy Recycling
Holdings, LLC ("PERH"), and reduction in the Company's combined
foreign currency forward positions achieved following the
acquisition of the Partnership. These positive factors were
offset by increased interest payments and preferred share dividends
associated with debt and preferred shares assumed as part of the
acquisition of the Partnership and $130
million of convertible debentures issued by the Company in
July 2012 for its Canadian Hills
acquisition, and by timing of the payment of $26 million in receivables from two offtakers at
the Company's projects. Payment of these receivables did not
occur until the first week of October, resulting in a reduction of
working capital for the nine months ended September 30, 2012.
Due to the timing of working capital adjustments, and cash
payments associated with interest on Atlantic Power's corporate
level debt, the Company's Payout Ratio will fluctuate from quarter
to quarter.
For further information, attached to this news release, are the
calculation of Cash Available for Distribution (in both US$ and
Cdn$), Payout Ratio, a summary of Project Adjusted EBITDA by
segment for the three and nine month periods ended September 30, 2012 and 2011 and a summary of
Project Adjusted EBITDA for selected projects for the three and
nine months ended September 30,
2012.
Construction Updates: Canadian Hills Wind &
Piedmont Green Power
Construction of the Company's Canadian
Hills project is progressing on schedule and within budget and is
expected to achieve COD in December 2012. The Company
anticipates that power sales under one of the project's five power
purchase agreements will commence this week. Four investors
have executed tax equity contribution agreements for $225 million of tax equity for the project, which
is expected to be funded at COD. The Company is pursuing additional
tax equity investors for the remaining $47
million needed to pay down the construction loan at COD and,
if necessary, will fund the remaining portion at that time with
cash on hand or proceeds from its existing credit facility.
The Piedmont project is in its
testing phase and has synchronized with the grid. It is
expected to achieve COD by the end of the year and is within budget
and on schedule.
Rationalizing Non-core Assets
Atlantic Power has
continued to rationalize its non-core assets with the sale of its
50% interest in Badger Creek on September 4,
2012 for proceeds of approximately $3.7 million. Other non-core assets that
are currently for sale are the Company's approximately 17% interest
in Gregory and its 40% interest in Delta
Person, which are being sold together with the interests of
the other partners in these projects. In addition, the
Company is conducting a sale process for its 100% interest in the
84 mile, 500-kilovolt transmission line, Path 15. The project
is the Company's only transmission project and it makes a
relatively small contribution to overall cash flow.
Amendment to Senior Credit Facility
On November 2, 2012, in connection with the
continued evolution of the Company's strategy to focus on
late-stage development and construction projects, and possible
disposition of certain projects, the Company amended its senior
credit facility in order to change certain financial and leverage
ratio covenants and obtained certain waivers from its
lenders. Please see the Company's Quarterly Report on Form
10Q for the period ended September 30,
2012 for additional information.
Outlook
Based on actual performance to date and
projections for the remainder of the year, Atlantic Power expects
to receive distributions from its projects in the revised range of
$255 to $265 million for the full
year 2012. The Company expects overall levels of operating cash
flows in 2012 to be improved over 2011 levels due primarily to full
year contributions from the Partnership assets and increased
distributions from Selkirk following the final payment of its
non-recourse, project-level debt, which occurred in June 2012. These increased operating cash flows
in 2012, in addition to one-time realized gains from the
termination of a portion of aggregate foreign currency forward
contracts following the acquisition of the Partnership and the
management termination fee from the sale of PERH, are expected to
positively impact cash available for distribution in 2012 versus
2011.
The Company is revising its 2012 Payout Ratio guidance from 90%
to 97%, to 96% to 102%, based on a number of factors impacting Cash
Available for Distribution, including the delayed distributions of
operating cash flow from the Chambers project in connection with
the favorable decision in the project's litigation, which is now
anticipated in 2013, and increased management general and
administrative expenses.
The Company has previously provided guidance with respect to
expected substantial decreases in cash flow from its Lake and Auburndale projects in Florida after their PPAs expire on
July 31 and December 31 of 2013, respectively. The
Company's Pasco project, a similar
sized gas facility also in Florida, signed a tolling agreement in 2008,
prior to the recession, which, after adjusting for one-time items,
provides approximately $4 million per
year in cash distributions to Atlantic. The Company
anticipates that potential new PPAs at its Lake and Auburndale projects would not individually
achieve a better result in the near-term than that of its tolling
agreement with Pasco due to
recessionary impacts in the Florida market.
The anticipated decreases in cash flow are expected to be
partially offset by cash flow of $24 to $29
million, in aggregate, from its Piedmont and Canadian Hills construction
projects starting in 2013, and cash flow increases of $14 to $18 million
from the Company's 50% interest in its Orlando project starting in 2014. The
Company expects, based on its growth assumptions, that there will
be additional contributions from acquisitions and dispositions,
which are expected to further support the Company's continued
ability to pay its dividend.
Dividend Reinvestment Plan
Atlantic Power announced
the details of the Company's Dividend Reinvestment Plan ("DRIP") on
August 8, 2012. The DRIP allows
eligible holders of common shares to reinvest their cash dividends
(if, as and when declared by the Company's board of directors and
paid) to acquire additional common shares of Atlantic Power at a 3%
discount to market price, as defined in the DRIP.
All holders of common shares who are Canadian or U.S. residents
are eligible to participate in the DRIP. Shareholders who
wish to participate in the DRIP should contact their brokerage firm
to enroll in the DRIP.
A complete copy of the DRIP and enrollment information is
available in the "Investors" section of the Company's website
www.atlanticpower.com. Shareholders are urged to carefully read the
complete plan before making any decisions regarding their
participation in the DRIP.
Participation in the DRIP does not relieve shareholders of any
liability for taxes that may be payable in respect of dividends
that are reinvested in new common shares pursuant to the DRIP.
Eligible shareholders interested in participating in the DRIP
should consult their own tax advisors concerning the tax
implications and consequences of their participation in the DRIP in
their particular circumstances.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any
jurisdiction.
Investor Conference Call and Webcast
A telephone
conference call hosted by Atlantic Power's management team will be
held on Tuesday, November 6, 2012 at 10:00 AM ET. The telephone numbers for the
conference call are: U.S. Toll Free: 1-877-317-6789; Canada Toll
Free: 1-866-605-3852; International Toll: +1 412-317-6789.
The Conference Call will also be broadcast over Atlantic
Power's website. 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; International Toll: +1-412-317-0088. Please enter
conference call number 10019543. The conference call will
also be archived on Atlantic Power's website.
About Atlantic Power
Atlantic Power is a leading publicly traded, power generation and
infrastructure company with a well-diversified portfolio of assets
in the United States and
Canada. The Company's power
generation projects sell electricity to utilities and other large
commercial customers under long-term power purchase agreements,
which seek to minimize exposure to changes in commodity prices.
The net generating capacity of the Company's projects is
approximately 2,117 MW, consisting of interests in 30 operational
power generation projects across 11 states and 2 provinces and an
84-mile, 500 kilovolt electric transmission line located in
California. In addition, the Company has one 53 MW biomass
project under construction in Georgia and one approximate 300 MW wind
project under construction in Oklahoma. Atlantic Power also
owns a majority interest in Rollcast Energy, a biomass power plant
developer in Charlotte, NC.
Atlantic Power is incorporated in British
Columbia, headquartered in Boston and has offices in Chicago, Toronto, Vancouver and San
Diego.
The Company's corporate strategy is to increase the value of the
Company through accretive acquisitions in North American markets
while generating stable, contracted cash flows from its existing
assets to sustain its dividend payout to shareholders. The
Company's dividend is currently paid monthly at an annual rate of
Cdn$1.15 per share.
Atlantic Power has a market capitalization of approximately
$1.8 billion and 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 financial data and other publicly filed documents get
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 forward-looking information as defined 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 the Company
and its projects and other matters. These statements, which
are based on certain assumptions and describe the Company's 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:
- The expectation that distributions from the Company's projects
will be in the range of $255 million to $265 million for
the full year 2012;
- The expectation that overall levels of operating cash flows in
2012 will be improved over actual 2011 levels;
- The expectation that there will be significant increases in
cash available for distribution from 2011 and that the Payout Ratio
in 2012 will be approximately 96% to 102%;
- The expectations regarding quarterly fluctuations in the
Company's Payout Ratio and the impact of certain interest payments
on the Company's Payout Ratio;
- The expectation that Canadian Hills and Piedmont, in aggregate, will add $24 to $29 million in cash flow starting in
2013;
- The expectation that cash flow from the Company's Orlando project will increase by $14 to $18 million a year starting in 2014;
- The expectations regarding decreases in cash flow from the
Company's Lake and Auburndale projects after their PPAs expire
and possible cash flow from other projects that may partially
offset such decreases;
- The expectation that potential new PPAs at the Company's
Lake and Auburndale projects would not individually
achieve a better result in the near-term than that of its tolling
agreement with Pasco;
- The expectation regarding contributions from acquisitions and
dispositions to support the Company's continued ability to pay its
dividend; and
- The expectations regarding the commercial operations date for
Piedmont Green Power and Canadian Hills Wind.
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. A number of factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not
limited to, the factors discussed under "Risk Factors" in the
Company's periodic reports as filed with the Securities and
Exchange Commission and applicable securities regulatory
authorities in Canada from time to
time for a detailed discussion of the risks and uncertainties
affecting the Company. 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
Consolidated Balance Sheets (in
thousands of U.S. dollars)
|
|
|
|
|
September 30,
|
December
31,
|
|
2012
|
2011
|
|
(Unaudited)
|
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash equivalents
|
$42,872
|
$60,651
|
Restricted cash
|
112,633
|
21,412
|
Accounts receivable
|
80,190
|
79,008
|
Current portion of derivative instruments
assets
|
10,792
|
10,411
|
Inventory
|
20,105
|
18,628
|
Prepayments and other current assets
|
27,751
|
7,615
|
Assets held for sale
|
203,111
|
-
|
Refundable income taxes
|
3,646
|
3,042
|
Total current assets
|
501,100
|
200,767
|
|
|
|
Property,
plant and equipment, net
|
1,730,765
|
1,388,254
|
Transmission system rights
|
-
|
180,282
|
Equity
investments in unconsolidated affiliates
|
432,525
|
474,351
|
Other
intangible assets, net
|
557,356
|
584,274
|
Goodwill
|
334,668
|
343,586
|
Derivative
instruments asset
|
14,236
|
22,003
|
Other
assets
|
73,345
|
54,910
|
Total assets
|
$3,643,995
|
$3,248,427
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
Current
liabilities:
|
|
|
Accounts payable
|
$13,997
|
$18,122
|
Accrued interest
|
29,453
|
19,916
|
Other accrued liabilities
|
82,690
|
43,968
|
Revolving credit facility
|
20,000
|
58,000
|
Current portion of long-term debt
|
303,890
|
20,958
|
Current portion of derivative instruments
liability
|
42,440
|
20,592
|
Dividends payable
|
11,627
|
10,733
|
Liabilities associated with assets held for
sale
|
157,420
|
-
|
Other current liabilities
|
4,014
|
165
|
Total current liabilities
|
665,531
|
192,454
|
|
|
|
Long-term
debt
|
1,225,661
|
1,404,900
|
Convertible debentures
|
326,067
|
189,563
|
Derivative
instruments liability
|
103,411
|
33,170
|
Deferred
income taxes
|
161,266
|
182,925
|
Power
purchase and fuel supply agreement liabilities, net
|
45,265
|
71,775
|
Other
non-current liabilities
|
63,996
|
57,859
|
Commitments and contingencies
|
-
|
-
|
Total liabilities
|
$2,591,197
|
$2,132,646
|
|
|
|
Equity
|
|
|
Common shares, no par value, unlimited authorized
shares; 119,294,718 and 113,526,182 issued and outstanding at
September 30, 2012 and December 31, 2011, respectively
|
1,286,399
|
1,217,265
|
Preferred shares issued by a subsidiary
company
|
221,304
|
221,304
|
Accumulated other comprehensive income
(loss)
|
17,253
|
(5,193)
|
Retained deficit
|
(474,489)
|
(320,622)
|
Total Atlantic Power Corporation shareholders'
equity
|
1,050,467
|
1,112,754
|
Noncontrolling interest
|
2,331
|
3,027
|
Total
equity
|
1,052,798
|
1,115,781
|
Total
liabilities and equity
|
$3,643,995
|
$3,248,427
|
Atlantic Power Corporation
Consolidated Statements of
Operations (in thousands of U.S. dollars, except per
share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
Nine
months ended September 30,
|
|
2012
|
2011
|
2012
|
2011
|
Project
revenue:
|
|
|
|
|
Energy sales
|
$72,033
|
$17,104
|
$218,883
|
$53,471
|
Energy capacity revenue
|
68,354
|
27,070
|
193,911
|
81,859
|
Other
|
14,112
|
521
|
51,036
|
1,153
|
|
154,499
|
44,695
|
463,830
|
136,483
|
|
|
|
|
|
Project
expenses:
|
|
|
|
|
Fuel
|
58,565
|
14,818
|
176,176
|
46,202
|
Operations and maintenance
|
35,848
|
8,124
|
111,027
|
25,618
|
Depreciation and amortization
|
38,542
|
8,880
|
111,219
|
26,705
|
|
132,955
|
31,822
|
398,422
|
98,525
|
Project
other income (expense):
|
|
|
|
|
Change in fair value of derivative
instruments
|
17,213
|
(11,484)
|
(40,953)
|
(12,497)
|
Equity in earnings of unconsolidated
affiliates
|
4,000
|
2,374
|
12,420
|
5,647
|
Interest expense, net
|
(4,211)
|
(1,576)
|
(12,637)
|
(4,832)
|
Other expense, net
|
(567)
|
(7)
|
(538)
|
(40)
|
|
16,435
|
(10,693)
|
(41,708)
|
(11,722)
|
Project
income
|
37,979
|
2,180
|
23,700
|
26,236
|
|
|
|
|
|
Administrative and other expenses
(income):
|
|
|
|
|
Administration
|
6,309
|
11,839
|
21,992
|
20,379
|
Interest, net
|
25,829
|
3,337
|
69,269
|
10,815
|
Foreign exchange gain
|
7,659
|
21,576
|
4,440
|
20,383
|
Other income, net
|
272
|
-
|
(5,728)
|
-
|
|
40,069
|
36,752
|
89,973
|
51,577
|
Loss from
operations before income taxes
|
(2,090)
|
(34,572)
|
(66,273)
|
(25,341)
|
Income tax
expense (benefit)
|
3,166
|
(5,323)
|
(19,076)
|
(12,900)
|
Loss from
continuing operations
|
(5,256)
|
(29,249)
|
(47,197)
|
(12,441)
|
Income
from discontinued operations, net of tax
|
773
|
1,271
|
1,444
|
3,514
|
Net
loss
|
(4,483)
|
(27,978)
|
(45,753)
|
(8,927)
|
Net income
(loss) attributable to noncontrolling interest
|
2,963
|
(78)
|
9,071
|
(349)
|
Net loss
attributable to Atlantic Power Corporation
|
$(7,446)
|
$(27,900)
|
$(54,824)
|
$(8,578)
|
|
|
|
|
|
Net loss
per share attributable to Atlantic Power Corporation
Shareholders:
|
|
|
|
|
Basic
|
$(0.06)
|
$(0.40)
|
$(0.47)
|
$(0.13)
|
Diluted
|
$(0.06)
|
$(0.40)
|
$(0.47)
|
$(0.13)
|
|
|
|
|
|
Atlantic Power Corporation
Consolidated Statements of Cash
Flows (in thousands of U.S. dollars)
|
(Unaudited)
|
|
|
|
|
|
Nine
months ended September 30,
|
|
|
|
2012
|
2011
|
|
Cash flows
from operating activities:
|
|
|
|
|
Net
loss
|
|
$(45,753)
|
$(8,927)
|
|
Adjustments to reconcile to net cash provided by
operating activities
|
|
|
|
|
Depreciation and amortization
|
|
117,464
|
32,711
|
|
Long-term incentive plan expense
|
|
2,344
|
2,257
|
|
Loss on the disposal of property, plant and equipment
and other charges
|
|
840
|
-
|
|
Impairment charge on equity investment
|
|
3,000
|
-
|
|
Gain on sale of equity investments
|
|
(578)
|
-
|
|
Equity in earnings from unconsolidated
affiliates
|
|
(14,842)
|
(5,647)
|
|
Distributions from unconsolidated
affiliates
|
|
26,821
|
15,542
|
|
Unrealized foreign exchange loss
|
|
21,552
|
28,175
|
|
Change in fair value of derivative
instruments
|
|
40,953
|
12,497
|
|
Change in deferred income taxes
|
|
(24,278)
|
(10,315)
|
|
Change in
other operating balances
|
|
|
|
|
Accounts receivable
|
|
(2,873)
|
258
|
|
Prepayments, refundable income taxes and other
assets
|
|
(18,656)
|
(570)
|
|
Accounts payable and accrued liabilities
|
|
14,855
|
1,536
|
|
Other liabilities
|
|
3,267
|
(1,178)
|
|
Net cash
provided by operating activities
|
|
124,116
|
66,339
|
|
|
|
|
|
|
Cash flows
used in investing activities:
|
|
|
|
|
Change in restricted cash
|
|
(105,494)
|
(12,379)
|
|
Proceeds from sale of equity investments
|
|
27,925
|
8,500
|
|
Cash paid for equity investment
|
|
(264)
|
-
|
|
Proceeds from related party loans
|
|
-
|
15,455
|
|
Biomass development costs
|
|
(372)
|
(753)
|
|
Construction in progress
|
|
(336,153)
|
(78,256)
|
|
Purchase of property, plant and equipment
|
|
(1,172)
|
(814)
|
|
Net cash
used in investing activities
|
|
(415,530)
|
(68,247)
|
|
|
|
|
|
|
Cash flows
(used in) provided by financing activities:
|
|
|
|
|
Proceeds from issuance of convertible
debentures
|
|
130,000
|
-
|
|
Proceeds from issuance of equity, net of offering
costs
|
|
67,692
|
-
|
|
Proceeds from project level debt
|
|
261,226
|
65,374
|
|
Repayment of project-level debt
|
|
(12,050)
|
(13,166)
|
|
Payments for revolving credit facility
borrowings
|
|
(60,800)
|
-
|
|
Proceeds from revolving credit facility
borrowings
|
|
22,800
|
-
|
|
Deferred financing costs
|
|
(25,339)
|
-
|
|
Dividends paid
|
|
(108,152)
|
(57,543)
|
|
Net cash
provided by (used in) financing activities
|
|
275,377
|
(5,335)
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
|
(16,037)
|
(7,243)
|
|
Less cash
at discontinued operations
|
|
(1,742)
|
-
|
|
Cash and
cash equivalents at beginning of the period
|
|
60,651
|
45,497
|
|
Cash and
cash equivalents at end of the period
|
|
$42,872
|
$38,254
|
|
Supplemental cash flow information
|
|
|
|
|
Interest paid
|
|
$77,738
|
$21,567
|
|
Income taxes paid (refunded), net
|
|
$3,145
|
$(352)
|
|
Accruals for construction in progress
|
|
$40,097
|
$19,547
|
|
|
|
|
|
|
|
Regulation G Disclosures
Cash Available for
Distribution is not a measure recognized under GAAP and does not
have a standardized meaning prescribed by GAAP. Management
believes Cash Available for Distribution is a relevant supplemental
measure of the Company's ability to earn and distribute cash
returns to investors. A reconciliation of Cash Flows from
Operating Activities to Cash Available for Distribution and to
Payout Ratio is provided below. Investors are cautioned that
the Company may calculate this measure in a manner that is
different from other companies.
Project Adjusted EBITDA is defined as project income 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. A reconciliation of
Project Adjusted EBITDA to project income is provided on the
following page. Investors are cautioned that the Company may
calculate this measure in a manner that is different from other
companies.
Atlantic Power Corporation
Cash
Available for Distribution
(In
thousands of U.S. dollars, except as otherwise
stated)
(Unaudited)
|
|
|
|
Three months ended September
30,
|
Nine months ended
September 30,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
Cash flows
from operating activities
|
|
$34,744
|
$21,624
|
$124,116
|
$66,339
|
|
Project-level debt repayments
|
|
(2,725)
|
(2,825)
|
(12,050)
|
(13,166)
|
|
Purchase
of property, plant and equipment
|
|
(370)
|
(268)
|
(1,172)
|
(814)
|
|
Transaction costs(1)
|
|
-
|
8,470
|
-
|
9,238
|
|
Dividends
on preferred shares of a subsidiary company
|
|
(3,321)
|
-
|
(9,767)
|
-
|
|
Cash
Available for Distribution(2)
|
|
28,328
|
27,001
|
101,127
|
61,597
|
|
|
|
|
|
|
|
|
Total cash
dividends declared to shareholders
|
|
$34,035
|
$19,010
|
$99,090
|
$57,552
|
|
|
|
|
|
|
|
|
Payout
Ratio
|
|
120%
|
70%
|
98%
|
93%
|
|
|
|
|
|
|
|
|
Expressed in Cdn$
|
|
|
|
|
|
|
Cash
Available for Distribution
|
|
28,188
|
26,833
|
101,339
|
60,520
|
|
Total
dividends declared to shareholders
|
|
34,288
|
18,874
|
99,637
|
56,259
|
|
|
|
|
|
|
|
|
|
(1) Represents business development costs
associated with the acquisition of the Partnership.
(2) Cash Available for Distribution 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.
Atlantic Power Corporation
Project
Adjusted EBITDA by Segment (in thousands of U.S.
dollars)
(Unaudited)
|
|
|
Three months ended September 30,
|
Nine
months ended
September 30,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
Project
Adjusted EBITDA by segment
|
|
|
|
|
|
|
Northeast
|
|
$20,346
|
$9,817
|
$85,156
|
$27,400
|
|
Southeast
|
|
23,150
|
21,635
|
69,892
|
63,892
|
|
Northwest
|
|
12,596
|
1,121
|
38,453
|
3,606
|
|
Southwest
|
|
23,440
|
1,523
|
47,952
|
4,894
|
|
Un-allocated corporate
|
|
(2,338)
|
(233)
|
(9,645)
|
(838)
|
|
Total
|
|
$77,194
|
$33,863
|
$231,808
|
$98,954
|
|
|
|
|
|
|
|
|
Reconciliation to project income
|
|
|
|
|
|
|
Depreciation and amortization
|
|
49,725
|
15,797
|
146,796
|
46,916
|
|
Interest expense, net
|
|
6,008
|
3,706
|
18,569
|
11,100
|
|
Change in the fair value of derivative
instruments
|
|
(17,347)
|
10,871
|
38,443
|
12,913
|
|
Other expense
|
|
829
|
1,309
|
4,300
|
1,789
|
|
Project
income
|
|
$37,979
|
$2,180
|
$23,700
|
$26,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power Corporation
Project
Adjusted EBITDA by Project (for Selected Projects) (in
thousands of U.S. dollars)
(Unaudited)
|
|
|
Three
months ended
September 30,
|
Nine months ended
September 30,
|
|
|
2012
|
2012
|
Project
Adjusted EBITDA by project
|
|
|
|
Northeast
|
|
|
|
Chambers
|
|
$4,749
|
$18,735
|
Curtis Palmer
|
|
3,089
|
18,874
|
Kapuskasing
|
|
(1,153)
|
2,809
|
Nipigon
|
|
3,000
|
10,240
|
North Bay
|
|
(169)
|
4,214
|
Selkirk
|
|
4,455
|
12,752
|
Tunis
|
|
2,052
|
8,426
|
Other
|
|
4,323
|
9,106
|
Total
|
|
20,346
|
85,156
|
Southeast
|
|
|
|
Auburndale
|
|
12,744
|
36,167
|
Lake
|
|
8,922
|
26,175
|
Other
|
|
1,484
|
7,550
|
Total
|
|
23,150
|
69,892
|
Northwest
|
|
|
|
Williams Lake
|
|
6,696
|
15,953
|
Other
|
|
5,900
|
22,500
|
Total
|
|
12,596
|
38,453
|
Southwest
|
|
|
|
Manchief
|
|
3,986
|
11,505
|
Morris
|
|
1,237
|
7,776
|
Other
|
|
18,217
|
28,671
|
Total
|
|
23,440
|
47,952
|
Un-allocated corporate
|
|
(2,338)
|
(9,645)
|
Total
|
|
$77,194
|
$231,808
|
Reconciliation to project income
|
|
|
|
Depreciation and amortization
|
|
$49,725
|
$146,796
|
Interest expense, net
|
|
6,008
|
18,569
|
Change in the fair value of derivative
instruments
|
|
(17,347)
|
38,443
|
Other expense, net
|
|
829
|
4,300
|
Project
income
|
|
$37,979
|
$23,700
|
|
|
|
|
SOURCE Atlantic Power Corporation