DEDHAM, Mass., Feb. 25, 2016 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today that it has postponed the release of its
financial results for the three months and year ended December 31, 2015. The Company expects the
audit of its 2015 financial statements to be completed by
March 15, 2016, and it intends to
release its financial results and file its annual report on Form
10-K no later than the SEC filing deadline for accelerated filers
of March 15, 2016. The Company
will issue a subsequent update announcing a rescheduled date for
the release and conference call.
The postponement is necessary because of the additional time
required to complete the complex analysis that the Company is
performing to finalize a non-cash write-down of Property, Plant and
Equipment (PP&E) and goodwill for the year ended December 31, 2015. Upon completion of the
analysis, the Company anticipates recording a non-cash impairment
in the range of $100 to $140 million
pretax for the year ended December 31,
2015, due to changes in market conditions (specifically,
lower forward power price curves) and the resulting effect on
PP&E, intangible assets and goodwill.
Impairment expense is non-cash and not included in Project
Adjusted EBITDA. Therefore, the Company does not expect the
impairment to have an impact on Project Adjusted EBITDA, Cash Flows
provided by Operating Activities, Adjusted Cash Flows from
Operating Activities or Adjusted Free Cash Flow for 2015 or prior
periods. The Company is providing the following preliminary
2015 results:
- Total Company Project Adjusted EBITDA of approximately
$209 million, in the top half of its
guidance range of $200 to $215
million
- Atlantic Power Limited Partnership (APLP) Project Adjusted
EBITDA of approximately $155
million, in the top half of the Company's guidance range of
$148 to $160 million
- Cash Flows provided by Operating Activities of
approximately $87 million, above the
top end of its guidance range of $65 to $80
million
- Adjusted Cash Flows from Operating Activities of
approximately $105 million, at the
top end of its guidance range of $95 to $105
million
- Adjusted Free Cash Flow of approximately $2 million, in the lower end of its guidance
range of $0 to $10 million, due to
delay in receipt of a $6 million
capex reimbursement that was received in February 2016
- Liquidity of approximately $178
million, including approximately $72
million of unrestricted cash
The Company also does not expect the impairment to have an
impact on its 2016 financial guidance, which it is providing as
follows:
- Total Company Project Adjusted EBITDA of $200 to $220 million
- APLP Project Adjusted EBITDA of $145 to $155 million
- Adjusted Cash Flows from Operating Activities of
$110 to $130 million
- Adjusted Free Cash Flow of $20 to
$40 million
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets in the United
States and Canada. The Company'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.
Atlantic Power's power generation projects in operation have an
aggregate gross electric generation capacity of approximately 2,141
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,504 MW. The Company's current portfolio
consists of interests in twenty-three operational power generation
projects across nine 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
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of 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.
Forward-Looking Non-GAAP
All amounts are in U.S. dollars and are approximate unless
otherwise indicated. Adjusted Cash Flows from Operating
Activities, Adjusted Free Cash Flow, Project Adjusted EBITDA and
APLP 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 Annex A attached to this news release
for the definitions of these non-GAAP measures and our purposes for
using them. Please see Table 1 attached to this news release
for the GAAP reconciliation of 2015 "Project Adjusted EBITDA,"
"Adjusted Cash Flows from Operating Activities" and "Adjusted Free
Cash Flow" as used in this news release. The Company has not
provided a reconciliation of 2015 Project Adjusted EBITDA to
Project Income (Loss) (the most directly comparable operating GAAP
measure) because the information necessary for a quantitative
reconciliation will not be available until completion of the audit
of our financial statements for the year ended December 31, 2015 and pending the results of our
impairment analysis relating to those financial statements as noted
above. 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. The Company also
has not provided a reconciliation of 2016 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.
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 the Company
and its projects. 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 Company anticipates a non-cash impairment charge in the
range of $100 to $140 million pretax
for the year ended December 31,
2015;
- the Company does not expect the impairment to have an impact on
Project Adjusted EBITDA, Cash Flows provided by Operating
Activities, Adjusted Cash Flows from Operating Activities or
Adjusted Free Cash Flow for 2015 or prior periods;
- the Company does not expect an impact from the impairment on
its 2016 financial guidance;
- the Company's preliminary 2015 financial results, as
follows: Total Company Project Adjusted EBITDA of
approximately $209 million; APLP
Project Adjusted EBITDA of approximately $155 million; Cash Flows provided by Operating
Activities of approximately $87
million; Adjusted Cash Flows from Operating Activities of
approximately $105 million; Adjusted
Free Cash Flow of approximately $2
million, and Liquidity of approximately $178 million, including approximately
$72 million of unrestricted
cash;
- the Company's 2016 guidance, as follows: Total Company
Project Adjusted EBITDA of $200 to $220
million; APLP Project Adjusted EBITDA of $145 to $155 million; Adjusted Cash Flows from
Operating Activities of $110 to $130
million, and Adjusted Free Cash Flow of $20 to $40 million;
- the Company expects the audit of its financial statements for
the year ended December 31, 2015 to
be completed no later than March 15,
2016; and
- the Company intends to release its financial results and file
its annual report on Form 10-K no later than the SEC filing
deadline for accelerated filers of March 15,
2016.
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 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.
Atlantic Power
Corporation
|
Table 1 – Adjusted
Cash Flows from Operating Activities and Adjusted Free Cash Flow
(in millions of U.S. dollars)
|
Twelve months
ended December 31, 2015 and 2014
|
Preliminary,
unaudited
|
|
|
|
Twelve months
ended
|
|
|
Twelve months
ended
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
Project Adjusted
EBITDA
|
|
|
$208.9
|
$28.1
|
$237.0
|
|
|
$229.4
|
$69.8
|
$299.2
|
Adjustment for equity
method projects (1)
|
|
2.2
|
(2.7)
|
(0.5)
|
|
|
(0.8)
|
(6.1)
|
(6.9)
|
Corporate G&A
expense
|
|
|
(29.4)
|
-
|
(29.4)
|
|
|
(37.9)
|
-
|
(37.9)
|
Cash interest
payments
|
|
|
(98.3)
|
(1.5)
|
(99.8)
|
|
|
(154.9)
|
(13.8)
|
(168.7)
|
Cash taxes
|
|
|
(3.9)
|
(6.2)
|
(10.1)
|
|
|
(2.1)
|
-
|
(2.1)
|
Other, including
changes in working capital
|
|
(7.8)
|
(2.0)
|
(9.8)
|
|
|
(17.0)
|
(1.6)
|
(18.6)
|
Cash flows from
operating activities (GAAP)
|
|
$71.7
|
$15.7
|
$87.4
|
|
|
$16.7
|
$48.3
|
$65.0
|
Changes in other
operating balances
|
|
7.8
|
2.0
|
9.8
|
|
|
17.0
|
1.6
|
18.6
|
Severance
charges
|
|
|
3.9
|
-
|
3.9
|
|
|
6.1
|
-
|
6.1
|
Restructuring and
other charges
|
|
|
0.6
|
-
|
0.6
|
|
|
1.7
|
-
|
1.7
|
Shareholder
litigation expenses
|
|
|
0.6
|
-
|
0.6
|
|
|
1.4
|
-
|
1.4
|
Refinancing
transaction costs (Q1 2014)
|
|
1.1
|
-
|
1.1
|
|
|
49.4
|
-
|
49.4
|
Debt redemption costs
(9.0% Notes) (Q3 2015)
|
|
19.5
|
-
|
19.5
|
|
|
-
|
-
|
-
|
Adjusted Cash
Flows from Operating Activities
|
$105.3
|
$17.7
|
$123.0
|
|
|
$92.4
|
$49.9
|
$142.3
|
Term loan facility
repayments (2)
|
|
|
(68.3)
|
-
|
(68.3)
|
|
|
(58.4)
|
-
|
(58.4)
|
Project-level debt
repayments
|
|
|
(15.1)
|
-
|
(15.1)
|
|
|
(11.7)
|
(6.4)
|
(18.1)
|
Purchases of
property, plant and equipment (3)
|
|
(11.3)
|
-
|
(11.3)
|
|
|
(11.1)
|
(2.3)
|
(13.4)
|
Distributions to
noncontrolling interests (4)
|
|
0.1
|
(3.8)
|
(3.7)
|
|
|
-
|
(11.0)
|
(11.0)
|
Dividends on
preferred shares of a subsidiary company
|
(8.8)
|
-
|
(8.8)
|
|
|
(11.6)
|
-
|
(11.6)
|
Adjusted Free Cash
Flow
|
|
|
$1.9
|
$13.9
|
$15.8
|
|
|
($0.3)
|
$30.2
|
$29.9
|
Additional GAAP cash
flow measures:
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
$333.7
|
($12.8)
|
$320.9
|
|
|
$73.5
|
($4.8)
|
$68.7
|
Cash flows from
financing activities
|
|
|
($432.8)
|
($13.0)
|
($445.8)
|
|
|
($131.6)
|
($50.8)
|
($182.4)
|
(1)
Represents difference between Project Adjusted EBITDA and cash
distributions from equity method
projects.
|
(2)
Includes 1% mandatory annual amortization and 50% excess cash flow
repayments by the Partnership.
|
(3)
Excludes construction costs related to the Company's Canadian Hills
project in 2014.
|
(4)
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: This table
presents Project Adjusted EBITDA, Adjusted Cash Flows from
Operating Activities and Adjusted 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.
|
Annex A
Project Adjusted EBITDA is defined as project income
(loss) plus interest, taxes, depreciation and amortization
(including non-cash impairment charges) and changes in the fair
value of derivative instruments. Management uses Project
Adjusted EBITDA at the project level to provide comparative
information about project performance and believes such information
is helpful to investors. Investors are cautioned that the
Company may calculate this measure in a manner that is different
from other companies.
Adjusted Cash Flows from Operating Activities is used to
evaluate cash flows from operating activities without the effects
of changes in working capital balances, acquisition and disposition
expenses, litigation expenses, severance and restructuring charges,
and cash provided by or used in discontinued operations. The
intent is to reflect normal operations and remove items that are
not reflective of the long-term operations of the business.
Free Cash Flow is defined as cash flows from operating
activities less capex; project-level debt repayments, including
amortization of the term loan; and distributions to noncontrolling
interests, including preferred share dividends.
Adjusted Free Cash Flow is defined as Free Cash Flow
excluding changes in working capital balances, acquisition and
disposition expenses, litigation expense, severance and
restructuring charges, and cash provided by or used in discontinued
operations.
Management believes that these non-GAAP cash flow measures are
relevant supplemental measures of the Company's ability to earn and
distribute cash returns to investors. Investors are cautioned
that the Company may calculate these measures in a manner that is
different from other companies.
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visit:http://www.prnewswire.com/news-releases/atlantic-power-corporation-postpones-fourth-quarter-and-year-end-2015-earnings-release-and-conference-call-provides-preliminary-2015-results-and-initiates-2016-guidance-300226749.html
SOURCE Atlantic Power Corporation