DEDHAM, Mass., Nov. 7, 2016 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today reported cash provided by operating activities of
$38.2 million for the third quarter
of 2016, an increase of $23.9 million
from the year-ago period primarily due to lower cash interest
payments (resulting from debt repayment) and favorable changes in
working capital.
Third Quarter 2016 Financial Results (and Comparison to Third
Quarter 2015)
- Cash provided by operating activities of $38.2 million vs. $14.3
million
- Net loss of $(82.4) million,
including $84.7 million non-cash
impairment charge, vs. $(6.0)
million
- Project loss of $(57.1) million
including impairment charge vs. project income of $24.2 million
- Project Adjusted EBITDA of $51.3
million vs. $56.0 million
Other Highlights
- Repaid $20 million of term loan
($45.1 million year to date, plus
$25.3 million on previous term loan
in first quarter)
- Amortized $3.7 million of project
debt ($8.0 million year to date)
- Repurchased 3.7 million common shares (7.1 million in total
under normal course issuer bid; total investment $17.3 million at an average price of $2.44)
- Reduced 2016 estimated total overhead costs to $24 million from previous estimate of
$27 million
The Company reported a net loss for the third quarter of 2016 of
$(82.4) million, which included a
non-cash impairment charge of $84.7
million, versus a net loss for the third quarter of 2015 of
$(6.0) million. The increased
net loss was primarily attributable to the impairment charge and a
reduction in foreign exchange gain, partially offset by lower
interest expense. Project loss for the third quarter of 2016
was $(57.1) million including the
impairment charge versus project income for the year-ago period of
$24.2 million. In addition to
the impairment charge, the result also reflected a reduction in
foreign exchange gain, partially offset by lower interest
expense.
Project Adjusted EBITDA for the third quarter of 2016 was
$51.3 million, a decline of
$4.7 million from the year-ago
period. The primary drivers were an extended planned outage
at Morris and lower water flows at Curtis Palmer, partially offset
by higher water flows at Mamquam and lower maintenance expense at
Kapuskasing and North Bay.
"During the third quarter we continued to make significant
progress in strengthening our balance sheet and improving our debt
maturity profile, repaying nearly $24
million of term loan and project debt and repurchasing
approximately $63 million of our
June 2019 convertible
debentures. Continued debt repayment should improve our
leverage ratio of 5.8 times by more than a turn by the end of next
year," said James J. Moore, Jr.,
President and CEO of Atlantic Power. "In addition, during the
quarter we repurchased nearly 3.7 million common shares, for a
total of 7.1 million repurchased under the normal course issuer bid
implemented last December. The average repurchase price of
$2.44 per share represents a
significant discount to our estimate of intrinsic value. We
currently have approximately $60
million of discretionary cash available for further debt and
equity repurchases and internal or external growth investments,
which we will continue to allocate to the highest-return uses."
"We continue to focus on cost and debt reduction as an important
contributor to improved cash flow. Over the next four years
we expect to amortize more than $400
million of our term loan and project debt, which will drive
interest expense and leverage lower," continued Mr. Moore.
"In addition, we now expect our overhead costs for 2016 to be
approximately $24 million, more than
10% lower than our previous estimate, which was already 50% below
the level of 2013. We plan to aggressively seek further cost
reduction opportunities, with a major focus on operating costs in
2017."
Atlantic Power
Corporation
|
|
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|
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Table 1 – Selected
Results
|
|
|
|
|
|
|
(in millions of
U.S. dollars, except as otherwise stated)
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Financial
Results
|
|
|
|
|
|
Project
revenue
|
|
$101.2
|
$107.5
|
|
$305.8
|
$321.8
|
Project (loss)
income
|
|
(57.1)
|
24.2
|
|
(3.3)
|
63.0
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
(82.4)
|
(6.0)
|
|
(116.2)
|
26.1
|
Cash provided by
operating activities
|
|
38.2
|
14.3
|
|
91.9
|
67.7
|
Project Adjusted
EBITDA
|
|
51.3
|
56.0
|
|
159.9
|
158.5
|
Cash Distributions
from Projects
|
|
50.4
|
51.5
|
|
140.6
|
138.8
|
Operating
Results
|
|
|
|
|
|
|
Aggregate power
generation (thousands of Net MWh)
|
|
1,540.2
|
1,666.7
|
|
4,565.8
|
4,707.1
|
Weighted average
availability
|
|
91.1%
|
96.2%
|
|
93.5%
|
94.9%
|
All amounts are in
U.S. dollars and are approximate unless otherwise indicated.
Project Adjusted EBITDA is not a recognized measure under
generally accepted accounting principles in the United States
("GAAP") and does not have a standardized meaning prescribed by
GAAP; therefore, this measure may not be comparable to similar
measures presented by other companies. Please refer to
"Non-GAAP Disclosures" beginning on page 15 of this news release
for an explanation and a reconciliation of "Project Adjusted
EBITDA" as used in this news release to project income (loss), the
most directly comparable measure on a GAAP basis, and net income
(loss). Cash Distributions from Projects is the amount of
cash distributed by the projects to the Company out of available
project cash flow after all project-level operating costs, interest
payments, principal repayment, capital expenditures and working
capital requirements. It is not a non-GAAP measure.
Project Adjusted EBITDA, a non-GAAP measure, is the most comparable
measure, but it is before debt service, capital expenditures and
working capital requirements. The Company has included a
bridge of Project Adjusted EBITDA to Cash Distributions from
Projects in the "Non-GAAP Disclosures" section of this
release.
The Wind Projects
consisted of five operating wind projects in Idaho and Oklahoma and
representing 521 MW net ownership: Goshen (12.5% economic
interest), Idaho Wind (27.6% economic interest), Meadow Creek (100%
economic interest), Rockland Wind Farm (50% economic interest, but
consolidated on a 100% basis) and Canadian Hills (99% economic
interest). The Wind Projects were sold in June 2015 and are
included in discontinued operations for the three and nine months
ended September 30, 2015. Results of the Wind Projects are
excluded from Operating Results in Table 1 and as discussed
below. Results of the Wind Projects are excluded from Project
revenue, Project (loss) income, Project Adjusted EBITDA and Cash
Distributions from Projects as shown in Table 1 and as discussed
below but are included in Net (loss) income attributable to
Atlantic Power Corporation and Cash provided by operating
activities as shown in Table 1.
|
Operating Results
Three Months ended September 30,
2016
Project availability was 91.1% in the third quarter of
2016, a decrease from 96.2% in the year-ago period. Morris
underwent an extensive overhaul in the third quarter and Calstock
deferred its spring outage to the fall. The impact of these
outages was partially offset by higher availability at Piedmont,
which had fewer outages in the third quarter, and Mamquam, which
had a planned outage in the third quarter of 2015.
Generation decreased 7.6% in the third quarter of 2016
from the year-ago period, primarily due to the Morris overhaul;
Frederickson, which had lower dispatch, and lower generation at
Curtis Palmer due to lower water flows. These decreases were
partially offset by higher generation at Mamquam due to higher
water flows in 2016 and a maintenance outage in the third quarter
of 2015.
Nine Months ended September 30,
2016
Project availability was 93.5% in the first nine months
of 2016, a decrease from 94.9% in the year-ago period. The
Morris overhaul was the primary driver of the reduced
availability. This was partially offset by higher
availability at Mamquam, which had a planned outage in the third
quarter of 2015, and Manchief, which had a major outage in the
second quarter of 2015.
Generation decreased by 3.0% in the first nine months of
2016 from the year-ago period, primarily due to lower dispatch at
Manchief and Selkirk and maintenance outages at Morris and
Chambers. These decreases were partially offset by higher
generation at Mamquam due to higher water flows in 2016 and a
maintenance outage in the comparable 2015 period.
Income and Project Adjusted EBITDA
Three Months Ended September 30,
2016
Impairment
In the third quarter of 2016, as discussed in further detail in
its report on Form 10-Q, the Company recorded a non-cash impairment
charge of $84.7 million. Of the
total, $78.8 million was for an
impairment of goodwill at its Mamquam, Curtis Palmer, North Bay and
Kapuskasing projects and the remainder was for an impairment of the
carrying value of long-lived assets at its North Bay and
Kapuskasing projects. As a result of these impairments,
goodwill was reduced to $37.6 million
at September 30,
2016.
The impairment resulted from an event-driven goodwill impairment
test, which was undertaken because of a significant decline during
the quarter in the long-term power price outlook provided by a
third party and used by the Company in this analysis.
Estimated future cash flows (beyond the expiration of the Power
Purchase Agreement or PPA) are sensitive to forward power
prices. Additionally, the approaching expiration dates of the
North Bay and Kapuskasing PPAs were a factor in the impairment
analysis.
Because the third-quarter test was event-driven, the Company is
still required to conduct an annual impairment test, which it will
do in the fourth quarter of 2016. As previously disclosed,
the Company identified a material weakness with respect to its
controls over impairment testing at the time the previous annual
test was conducted. Management is actively engaged in
remediating this weakness, and has re-designed certain controls and
implemented new controls as part of this process. The Company
expects to remediate this weakness by the time its year end 2016
financial statements are filed on Form 10-K.
Net income (loss)
The Company reported a net loss of $(82.4) million versus a net loss of $(6.0) million in the third quarter of
2015. The year-over-year decrease was mostly attributable to
an $84.7 million impairment charge
recorded in the 2016 period as described above and an $18.3 million decrease in a largely unrealized
foreign exchange gain relative to 2015. These negative
factors were partially offset by lower interest expense in 2016,
which was attributable to debt repayment in 2015 and 2016 and to
the non-recurrence of $19.5 million
of interest and redemption costs associated with the July 2015 redemption of the Company's 9.0% Senior
Unsecured Notes (the "9.0% Notes").
Project income (loss) and Project Adjusted EBITDA
Table 2 provides a breakdown of Project income and Project
Adjusted EBITDA by segment for the three and nine months ended
September 30, 2016 as compared to the
same periods in 2015. An explanation of these two metrics can
be found in the Note to Table 2. Results for project income
and Project Adjusted EBITDA exclude discontinued operations;
accordingly, results of the Wind Projects, which were sold in
June 2015, are not included in either
metric for the periods shown in Table 2.
Project loss for the third quarter of 2016 was
$(57.1) million versus project income
of $24.2 million for the year-ago
period. The primary reason for the change from project income
to project loss was the $84.7 million
impairment recorded in the third quarter of 2016. Another
factor was the reduction in foreign exchange gain from $21.7 million in 2015 to $3.4 million in 2016. These negative
factors were partially offset by increased income attributable to
the fair value of derivatives and lower interest expense, in part
because of the costs associated with the redemption of the 9.0%
Notes in the third quarter of 2015.
Project Adjusted EBITDA decreased $4.7 million to $51.3
million for the third quarter of 2016. Morris had an
$8.5 million reduction in Project
Adjusted EBITDA, primarily attributable to higher maintenance
expense and reduced gross margin due to a planned extended
outage. Lower water flows at Curtis Palmer and expiration of
a rate adder at Calstock also contributed to the decrease.
These factors were partially offset by higher water flows at
Mamquam, lower maintenance expense at Kapuskasing and North Bay,
and increases at other projects.
Atlantic Power
Corporation
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Table 2 – Segment
Results
|
(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Project income
(loss)
|
|
|
|
|
|
|
East U.S.
|
|
($8.6)
|
$12.4
|
|
$16.9
|
$40.0
|
West U.S.
|
|
11.4
|
11.5
|
|
13.8
|
7.3
|
Canada
|
|
(62.4)
|
1.9
|
|
(33.1)
|
17.9
|
Un-allocated
Corporate
|
|
2.5
|
(1.6)
|
|
(0.9)
|
(2.2)
|
Total
|
|
($57.1)
|
$24.2
|
|
($3.3)
|
$63.0
|
Project Adjusted
EBITDA
|
|
|
|
|
|
|
East U.S.
|
|
$19.4
|
$27.4
|
|
$70.5
|
$81.0
|
West U.S.
|
|
21.3
|
21.4
|
|
43.4
|
37.1
|
Canada
|
|
10.7
|
7.6
|
|
46.2
|
43.0
|
Un-allocated
Corporate
|
|
(0.1)
|
(0.4)
|
|
(0.2)
|
(2.6)
|
Total
|
|
$51.3
|
$56.0
|
|
$159.9
|
$158.5
|
Note: The
results of the Wind Projects are included in discontinued
operations and are excluded from Project income and Project
Adjusted EBITDA as presented in Table 2.
Project income
(loss) is a GAAP measure that can fluctuate significantly due
to non-cash adjustments to "mark-to-market" the fair value of
derivatives. Non-cash impairment charges and gains or losses
on the sale of assets are included in project income and can also
affect year-over-year comparisons.
Project Adjusted
EBITDA is a non-GAAP measure. Management believes that
Project Adjusted EBITDA, which includes the proportional share of
Project Adjusted EBITDA from the Company's equity method projects,
is a more useful measure of financial results at its projects
because it excludes non-cash impairment charges, gains or losses on
the sale of assets and non-cash mark-to-market adjustments, all of
which can affect year-to-year comparisons. Project Adjusted
EBITDA is before corporate overhead expense. The most
directly comparable GAAP measure to Project Adjusted EBITDA is
Project income; Tables 10A through 10D of this release provide a
reconciliation of Net income to Project income and to Project
Adjusted EBITDA by segment and on a consolidated basis for the
three- and nine-month periods ended September 30, 2016 and
September 30, 2015.
|
Corporate-level general and administrative (G&A)
expense (shown as "Administration" on the Consolidated
Statements of Operations) decreased $1.2
million in the third quarter of 2016 to $5.7 million. The improvement was primarily
due to decreases in professional services expenses, compensation
costs and rent expenses.
Nine Months Ended September 30,
2016
Net income (loss)
The Company had a net loss of $(116.2)
million for the first nine months of 2016 versus net income
of $26.1 million for the comparable
2015 period. The 2016 result included the $84.7 million impairment charge recorded in the
third quarter and a $31.5 million
non-cash write-off of deferred financing costs in the second
quarter. The 2015 result included $20.6 million of net income from discontinued
operations (Wind business) and an $11.0
million loss attributable to noncontrolling interests
(Wind). The benefit of lower corporate G&A and lower
interest expense in 2016 was more than offset by a largely
unrealized foreign exchange loss of $19.1
million versus a foreign exchange gain in 2015.
Project income (loss) and Project Adjusted EBITDA
Project loss of $3.3
million for the first nine months of 2016 compared
unfavorably to project income of $63.0
million for the 2015 period. The 2016 result included
the impairment charge previously described. Excluding the
impairment charge, project income increased $18.4 million from the year-ago period, primarily
due to a favorable change in the fair value of derivative
instruments, lower depreciation expense following an impairment of
long-lived assets in the fourth quarter of 2015, and higher project
income at Manchief, which had a scheduled maintenance overhaul in
the second quarter of 2015, partially offset by lower project
income at Morris, which had an extended planned outage in the third
quarter of 2016.
Project Adjusted EBITDA of $159.9
million for the first nine months of 2016 increased
$1.4 million from $158.5 million for the 2015 period. Lower
maintenance expense and higher revenue at Manchief, which had an
outage in 2015, and higher water flows at Mamquam were partially
offset by higher maintenance expense and lower revenues at Morris
due to the extended outage in 2016 and by gas turbine maintenance
expense and lower steam demand at Kenilworth.
Corporate-level G&A expense of $17.6 million for the first nine months of 2016
was $5.4 million lower than the
year-ago period primarily due to a $2.3
million reduction in employee compensation expense, a
$1.6 million decrease in professional
services costs and a $1.4 million
decrease in rent expense.
Cash Flow
Table 3 presents cash flow results for the Company for the three
and nine months ended September 30,
2016 as compared to the same periods in 2015.
Atlantic Power
Corporation
|
Table 3 – Cash
Flow Results
|
(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Cash Provided by
Operating Activities
|
$38.2
|
$14.3
|
|
$91.9
|
$67.7
|
Amount attributable to
Discontinued Operations (Wind Projects) included above
|
|
-
|
-
|
|
-
|
21.9
|
|
|
|
|
|
|
|
Cash Distributions
from Projects (excludes
Discontinued Operations) (1)
|
|
50.4
|
51.5
|
|
140.6
|
138.8
|
(1)
There were no cash distributions from the Wind Projects for the
three months ended September 30, 2016 and 2015. Excludes cash
distributions from the Wind Projects of $0 and $9.3 million for the
nine months ended September 30, 2016 and 2015,
respectively.
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2016
Cash provided by operating activities (a GAAP measure)
increased $23.9 million to
$38.2 million from $14.3 million in the third quarter of 2015.
The increase was primarily attributable to a $20.6 million reduction in cash interest payments
due to debt repayment in 2016 and 2015 and make-whole payments
associated with the redemption of the 9.0% Notes in 2015.
Changes in other operating balances (such as receivables,
payables and certain other assets and liabilities) were a positive
$17.5 million versus $7.6 million in the year-ago period, or a
$9.9 million benefit to cash flow in
2016 as compared to 2015. The positive impact of lower cash
interest payments and the favorable change in other operating
balances was partially offset by lower Project Adjusted EBITDA
($4.7 million).
During the quarter, the Company used operating cash flow to
repay term loan debt of $20 million
and project debt of $3.7 million,
make capital expenditures of $4.5
million and pay preferred dividends of $2.2 million. In the third quarter of 2015,
repayment of the term loan was $9.7
million, project debt repayment was $4.4 million, capital expenditures were
$4.4 million and preferred dividends
were $2.1 million.
Cash Distributions from Projects is the amount of cash
distributed by the projects to the Company out of available project
cash flow after all project-level operating costs, interest
payments, principal repayment, capital expenditures and working
capital requirements. In the third quarter of 2016, Cash
Distributions from Projects decreased $1.1
million to $50.4 million from
$51.5 million for the same period in
2015. The decrease was primarily due to Curtis Palmer, which
experienced lower water flows, and Morris, which underwent an
extensive overhaul in the third quarter of 2016. These
decreases were partially offset by increases at Manchief,
Kapuskasing and Nipigon because of major maintenance/optimization
events in the third quarter of 2015 that did not recur in the third
quarter of 2016.
Nine Months Ended September 30,
2016
Cash provided by operating activities increased
$24.2 million in the first nine
months of 2016 to $91.9 million from
$67.7 million in the year-ago
period. The 2015 result included $21.9
million of operating cash flow from the Wind business.
Excluding this discontinued operation, operating cash flow
increased approximately $46
million. The increase was primarily attributable to a
reduction of $32.2 million in cash
interest payments (of which $1.5
million was attributable to the Wind business) due to debt
repayment in 2015 and 2016 and the absence of make-whole premiums
associated with the redemption of the 9.0% Notes in 2015.
Lower corporate G&A expense of $5.4
million was also a positive
factor.
Changes in other operating balances in the first nine months of
2016 were $53.6 million versus
$24.4 million in the comparable
period in 2015. The 2016 result included $31.5 million for the write-off of deferred
financing costs in the second quarter, which was included in net
income (loss) but did not affect cash flow, and the 2015 figure
included $3.2 million related to the
Wind business. Excluding these items, changes in other
operating balances were approximately $22
million in 2016 and $21
million in 2015, or a $1
million benefit to cash flow in 2016 as compared to
2015.
In the first nine months of 2016, the Company used operating
cash flow to repay term loan debt of $70.5
million (including $25.3
million related to the previous term loan in the first
quarter) and project debt of $8.0
million, make capital expenditures of $6.5 million and pay preferred dividends of
$6.4 million. In the first nine
months of 2015, repayment of the term loan was $56.5 million, project debt repayments totaled
$10.8 million, capital expenditures
were $9.4 million and preferred
dividends were $6.7
million.
Cash Distributions from Projects increased $1.8 million to $140.6
million for the first nine months of 2016 from $138.8 million for the same period in 2015.
The increase was due to Manchief, which underwent a gas turbine
major overhaul last year; Morris, which received a reimbursement
for a customer-owned construction project this year; and Mamquam,
which benefited from higher water flows. These increases were
partially offset by Chambers, which under the new project debt
agreement in 2014 made a nine-month distribution in January 2015 versus a six-month distribution in
January 2016.
Results of Discontinued Operations
The Wind projects, which were sold in June 2015, had no impact on financial results in
2016. For the first nine months of 2015, the Wind projects
had Project income of $53.2 million,
Cash provided by operating activities of $21.9 million and Cash Distributions of
$9.3 million, as shown in Table
4.
Atlantic Power
Corporation
|
|
|
|
Table 4 –
Discontinued Operations
|
|
|
|
(in millions of
U.S. dollars, except as otherwise stated)
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Project
revenue
|
|
$-
|
$-
|
|
$-
|
$34.8
|
Project income
(loss)
|
|
-
|
(0.2)
|
|
-
|
53.2
|
Net (loss)
income
|
|
-
|
(0.5)
|
|
-
|
20.6
|
Cash provided by
operating activities
|
|
-
|
-
|
|
-
|
21.9
|
Cash Distributions
from Projects
|
|
-
|
-
|
|
-
|
9.3
|
Liquidity and Recent Balance Sheet Initiatives
Balance Sheet
Substantial Issuer Bid for 2019 Convertible
Debentures
As previously reported, in July
2016, the Company repurchased and canceled $62.7 million of its Series C Convertible
Debentures under a substantial issuer bid. The price was
$965 per $1,000 of principal amount, plus accrued and
unpaid interest. At September 30,
2016, there were approximately $42.6
million of Series C Convertible Debentures
outstanding.
Mandatory Debt Repayment
During the third quarter of 2016, the Company amortized
$20 million of the APLP Holdings term
loan and $3.7 million of
project-level debt. Year to date, the Company has amortized
$70.5 million of term loan debt,
including $25.3 million in the first
quarter related to the previous term loan, and $8.0 million of project-level debt. The
Company expects to repay another $15
million of term loan and $2.9
million of project-level debt in the fourth quarter of
2016.
Normal Course Issuer Bid (Discretionary repurchases)
Convertible debentures: In the first quarter of
2016, the Company repurchased $18.8
million principal amount of convertible debentures under the
normal course issuer bid (NCIB). The remaining 2017
convertible debentures were redeemed in May using net proceeds from
the term loan refinancing. The Company did not make any
additional repurchases of convertible debentures under the NCIB in
the second or third quarters of 2016 because it had already reached
the maximum amounts of repurchases of 2019 convertible debentures
allowable under the NCIB ($11.7
million for the Series C and Cdn$9.0
million for the Series D).
Common shares: The Company repurchased slightly
less than 3.7 million common shares in the third quarter at a cost
of approximately $9.1 million.
During the fourth quarter to date, the Company has repurchased
another 1.4 million common shares. Since the NCIB was
implemented in December, the Company has repurchased a total of 7.1
million common shares at a total cost of approximately $17.3 million (average price of $2.44 per share).
The NCIB is scheduled to expire on December 28, 2016.
Debt Balance and Leverage at September
30, 2016
Although the refinancing of the previous term loan in
April 2016 resulted in a net increase
in debt of $252 million, the
allocation of a majority of the net cash proceeds from the
refinancing to debt redemptions and repurchases in the second and
third quarters of this year, together with ongoing amortization of
the new term loan and project debt, have offset the majority of
this increase. At September 30,
2016, the Company's consolidated debt was $1.02 billion, excluding unamortized discounts
and deferred financing costs, as compared to $993 million prior to the refinancing. The
Company's leverage ratio (consolidated gross debt to trailing
12-month consolidated Adjusted EBITDA) was 5.8 times at
September 30, 2016. The Company
expects this ratio to decline to 5.6 times by the end of
2016.
Debt Maturity Profile
As a result of refinancing and discretionary repurchases to
date, the Company has no bullet maturities at the corporate level
prior to June 2019, when the
remaining $42.6 million of Series C
convertible debentures will mature. In addition, the Company
has $61.7 million (U.S. dollar
equivalent) of Series D convertible debentures maturing in December
2019. The reshaping of the Company's maturity profile is
further improved by the later maturity dates for the new term loan
(2023 versus 2021 previously) and the new revolver (2021 versus
2018 previously). The Company also has one project debt
bullet maturity during this period – the term loan at its Piedmont
project totaling $54 million at its
maturity date of August 2018. In addition to these bullet
maturities, the Company has amortizing debt at various projects
through 2025 and required amortization of the APLP Holdings term
loan per a targeted debt schedule through the 2023 maturity
date.
Liquidity
As shown in Table 5, the Company's liquidity at September 30, 2016 was $205.1 million, including $93.8 million of unrestricted cash and
$111.3 million of borrowing capacity
under its corporate revolver. Liquidity at June 30, 2016 was $251.4
million, including $154.2
million of unrestricted cash and $97.2 million of borrowing capacity.
Borrowing capacity increased $13.9
million because of a reduction in letters of credit
outstanding. The cash balance decreased approximately
$60 million during the quarter, as
the Company used $61 million of cash
to repurchase $62.7 million of its
Series C Convertible Debentures at a price of 96.5%. The
Company also repurchased $9.1 million
of common shares. Operating cash flow exceeded debt
repayment, capital expenditures and preferred dividend payments for
the quarter by approximately $8
million.
Atlantic Power
Corporation
|
|
|
|
Table 5 –
Liquidity (in millions of U.S. dollars)
|
|
|
|
Unaudited
|
|
|
|
|
|
June 30,
2016
|
September 30,
2016
|
Revolver
capacity
|
|
$200.0
|
$200.0
|
Letters of credit
outstanding
|
|
(102.8)
|
(88.7)
|
Unused borrowing
capacity
|
|
97.2
|
111.3
|
Unrestricted
cash
|
|
154.2
|
93.8
|
Total
Liquidity
|
|
$251.4
|
$205.1
|
Note: Liquidity
numbers presented do not include restricted cash of $14.3 million
at June 30, 2016 and $12.6 million at September 30,
2016.
|
|
|
|
|
|
|
|
Other Financial Updates
2016 Guidance
The Company has not provided guidance for Project income or Net
income because of the difficulty of making accurate forecasts and
projections without unreasonable efforts with respect to certain
highly variable components of these comparable GAAP metrics,
including changes in the fair value of derivative instruments and
foreign exchange gains or losses. These factors, which
generally do not affect cash flow, are not included in Project
Adjusted EBITDA.
Based on the results of the nine months ended September 30, 2016 and the outlook for the fourth
quarter of 2016, the Company is narrowing its range for 2016
Project Adjusted EBITDA guidance to between $205 and $215 million, from the previous range of
$200 to $220 million.
Table 6 provides a bridge of the Company's 2016 Project Adjusted
EBITDA guidance to Cash provided by operating activities. For
purposes of providing this bridge to a cash flow measure, the
impact of changes in working capital is assumed to be nil.
Atlantic Power
Corporation
|
Table 6 – Bridge
of 2016 Project Adjusted EBITDA Guidance to Cash Provided by
Operating Activities
|
(in millions of
U.S. dollars)
|
Unaudited
|
|
|
|
2016 Project
Adjusted EBITDA Guidance(1)
|
$205 -
$215
|
Adjustment for equity
method projects(2)
|
(2)
|
Corporate G&A
expense
|
(23)
|
Cash interest
payments
|
(73)
|
Cash taxes
|
(4)
|
Other
|
-
|
Cash provided by
operating activities
|
$100 -
$115
|
Note: For the
purpose of providing a bridge of Project Adjusted EBITDA guidance
to a cash flow measure, the impact of changes in working capital on
Cash provided by operating activities is assumed to be
nil.
(1)
Initially provided March 7, 2016 and revised November 7,
2016.
|
(2) For
equity method projects, represents difference between Project
Adjusted EBITDA and cash distribution from equity method
projects.
|
|
|
|
Optimization Investments
The Company expects to make approximately $3.5 million of optimization-related investments
in its projects in 2016, with the majority of those for upgrades to
a boiler and two combustion turbines at Morris and a spillway
upgrade project at Curtis Palmer. The Morris turbine upgrades
were completed in September during the extended outage. Work
on the boiler upgrade has been completed and final testing is
expected to be completed by the end of November. The Curtis
Palmer project was completed in November.
The Company expects to realize a cash flow benefit of
approximately $8 million in 2016 from
investments made in 2013 through 2016 totaling approximately
$25 million. This is lower than
the original expectation primarily because higher levels of waste
heat at Nipigon have reduced the need for the duct burners and
booster pump that were installed as optimization projects in 2014
and 2015, respectively. The cash flow benefit of additional
waste heat has more than offset the lower return from
optimization. In addition, low water flows at Curtis Palmer
this year have reduced the contribution from the turbine upgrades
completed in 2013 and 2014.
Maintenance and Capex
Through the first nine months of 2016, the Company has made
$6.5 million of capital expenditures
and incurred $36.8 million of
maintenance expense. For the full year, the Company expects
to make capital expenditures of $8
million (including $3.5
million for optimization projects) and incur maintenance
expense in 2016 of approximately $47
million. Both the capex and maintenance expenditures
forecasts include the Company's share of projects in which it has
an equity ownership interest.
The capital expenditure forecast does not include any outlays
for converting Tunis to simple
cycle operation (in conjunction with the new Power Purchase
Agreement), as there has not yet been a decision with respect to
the start date for the new PPA, or for a new fuel shredder at
Williams Lake, which would accommodate rail ties as part of the
project's fuel supply. In September, the Company received an
amended air permit for Williams Lake that would allow increased use
of rail ties, but the permit has been appealed. Investment in
the shredder is contingent on resolution of the appeal as well as
on an agreement with BC Hydro on a long-term extension of the
existing PPA, which is scheduled to expire in March 2018.
Supplementary Financial Information
For a discussion of non-GAAP disclosures and schedules
reconciling the Company's non-GAAP measure to the comparable GAAP
measure, please refer to pages 15-21 of this release.
Included in this section is a summary of Project income and Project
Adjusted EBITDA by project for the three and nine months ended
September 30, 2016 and 2015 (Tables
12 and 13, respectively).
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call on Tuesday, November 8,
2016 at 8:30 AM ET. An
accompanying slide presentation will be available on the Company's
website prior to the call.
Conference Call / Webcast Information:
Date: Tuesday, November
8, 2016
Start Time: 8:30 AM
ET
Phone Number: U.S. (Toll Free) 1-855-239-3193;
Canada (Toll Free) 1-855-669-9657;
International (Toll) 1-412-542-4129
Conference Access: Please request access to the
Atlantic Power conference call.
Webcast: The call will be broadcast over Atlantic
Power's website at www.atlanticpower.com.
Replay/Archive Information:
Replay: Access conference call number 10094170 at
the following telephone numbers: U.S. (Toll Free)
1-877-344-7529; Canada (Toll Free)
1-855-669-9658; International (Toll) 1-412-317-0088. The
replay will be available one hour after the end of the conference
call through December 8, 2016 at
11:59 PM ET.
Webcast archive: The conference call will be archived
on Atlantic Power's website at www.atlanticpower.com for a period
of 12 months.
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 2,138
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,500 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's shares trade 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 the Company's financial data and other publicly filed
documents are available 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 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's expectation that its leverage ratio will decline
from 5.8 times currently to 5.6 times by year end 2016;
- the Company's expectation that it will improve its leverage
ratio of 5.8 times currently by more than a turn by year end
2017;
- the Company's belief that the average repurchase price of
$2.44 per share represents a
compelling discount to the Company's estimate of intrinsic
value;
- the Company's estimate of discretionary cash (approximately
$60 million) and its ability to
allocate that cash to the highest-return uses;
- the Company's estimate that it will amortize more than
$400 million of term loan and project
debt over the next four years;
- the Company's estimate that overhead costs will total
approximately $24 million in 2016,
down from the previous expectation of approximately $27 million;
- the Company's plan to seek further cost reductions in 2017,
with a focus on plant operating costs;
- the Company's estimates of factors affecting its goodwill
impairment analysis;
- the Company's views that it will remediate the material
weakness in its financial controls (with respect to impairment) by
the time it files its 2016 report on Form 10-K;
- the Company's expectation that it will repay $15 million of term loan debt and $2.9 million of project debt in the fourth
quarter of 2016;
- the Company's views of its debt maturity profile;
- the Company's expectation that discretionary optimization
investments in its fleet will be approximately $3.5 million in 2016, and that the majority of
those investments will be made at the Morris and Curtis Palmer
projects;
- the timing of the completion of upgrades at the Morris and
Curtis Palmer projects;
- the Company's expectation that it will realize a cash flow
benefit of approximately $8 million
in 2016 from discretionary investments made in 2013 through 2016
totaling approximately $25
million;
- the Company's expectation that in 2016, capital expenditures
will total approximately $8 million
and maintenance expense will total approximately $47 million;
- timing of capital expenditures for a new fuel shredder at
Williams Lake and the timing and probability of resolution of the
appeal of an amended air permit and contract extension with BC
Hydro;
- the Company's estimation that 2016 Project Adjusted EBITDA will
be in the range of $205 to $215
million; and
- the results of operations and performance of the Company's
projects, business prospects, opportunities and future growth of
the Company will be as described herein.
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,
including, without limitation, the outcome or impact of the
Company's business plan, including the objective of enhancing the
value of its existing assets through optimization investments and
commercial activities, delevering its balance sheet to improve its
cost of capital and ability to compete for new investments, and
utilizing its core competencies to create proprietary investment
opportunities, and the Company's ability to raise additional
capital for growth and/or debt reduction, and the outcome or impact
on the Company's business of any such actions. 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 Company's ability to
achieve its longer-term goals, including those described in this
news release, is based on significant assumptions relating to and
including, among other things, the general conditions of the
markets in which it operates, revenues, internal and external
growth opportunities, its ability to sell assets at favorable
prices or at all and general financial market and interest rate
conditions. The Company's actual results may differ, possibly
materially and adversely, from these goals.
Table 7 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
(Unaudited)
|
|
|
|
September
30,
|
December
31,
|
|
2016
|
2015
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$93.8
|
$72.4
|
Restricted
cash
|
12.6
|
15.2
|
Accounts
receivable
|
39.5
|
39.6
|
Inventory
|
1.6
|
-
|
Prepayments
and other current assets
|
15.9
|
16.9
|
Assets held
for sale
|
10.1
|
8.3
|
Other current
assets
|
2.5
|
4.5
|
Total current
assets
|
176.0
|
156.9
|
|
|
|
Property, plant and
equipment, net
|
749.8
|
777.7
|
Equity investments in
unconsolidated affiliates
|
277.6
|
286.2
|
Power purchase
agreements and intangible assets, net
|
273.0
|
308.9
|
Goodwill
|
37.6
|
134.5
|
Derivative
instruments asset
|
1.3
|
0.3
|
Deferred income
tax
|
1.0
|
-
|
Other
assets
|
5.6
|
6.7
|
Total
assets
|
$1,521.9
|
$1,671.2
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$3.7
|
$6.9
|
Accrued
interest
|
10.9
|
1.6
|
Other accrued
liabilities
|
24.3
|
25.4
|
Current
portion of long-term debt
|
101.4
|
15.8
|
Current
portion of derivative instruments liability
|
15.2
|
36.7
|
Other current
liabilities
|
4.1
|
2.5
|
Total current
liabilities
|
159.6
|
88.9
|
|
|
|
Long-term
debt
|
778.9
|
682.7
|
Convertible
debentures
|
101.4
|
277.7
|
Derivative
instruments liability
|
27.3
|
20.8
|
Deferred income
taxes
|
69.8
|
85.7
|
Power purchase and
fuel supply agreement liabilities, net
|
26.2
|
27.0
|
Other long-term
liabilities
|
54.9
|
53.2
|
Total
liabilities
|
$1,218.1
|
$1,236.0
|
|
|
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 117,029,308 and 122,153,082
issued and outstanding at September 30, 2016 and December 31, 2015,
respectively
|
1,278.1
|
1,290.6
|
Accumulated other
comprehensive loss
|
(142.0)
|
(139.3)
|
Retained
deficit
|
(1,053.6)
|
(937.4)
|
Total Atlantic Power
Corporation shareholders' equity
|
82.5
|
213.9
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Total
equity
|
303.8
|
435.2
|
Total liabilities and
equity
|
$1,521.9
|
$1,671.2
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 8 –
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
(in millions of
U.S. dollars, except per share amounts)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Project
revenue:
|
|
|
|
|
|
|
|
Energy
sales
|
|
$40.7
|
$43.4
|
|
$138.4
|
$144.9
|
Energy
capacity revenue
|
|
44.0
|
45.9
|
|
113.2
|
117.4
|
Other
|
|
16.5
|
18.2
|
|
54.2
|
59.5
|
|
|
101.2
|
107.5
|
|
305.8
|
321.8
|
Project
expenses:
|
|
|
|
|
|
|
Fuel
|
|
36.8
|
41.1
|
|
110.8
|
125.3
|
Operations and
maintenance
|
|
28.2
|
24.8
|
|
79.4
|
81.6
|
Development
|
|
-
|
-
|
|
-
|
1.1
|
Depreciation
and amortization
|
|
25.3
|
27.8
|
|
75.6
|
83.8
|
|
|
90.3
|
93.7
|
|
265.8
|
291.8
|
Project other income
(expense):
|
|
|
|
|
|
|
Change in fair
value of derivative instruments
|
|
9.0
|
3.6
|
|
20.0
|
8.7
|
Equity in
earnings of unconsolidated affiliates
|
|
9.6
|
8.9
|
|
27.9
|
28.3
|
Interest,
net
|
|
(2.4)
|
(2.1)
|
|
(6.9)
|
(6.2)
|
Impairment
|
|
(84.7)
|
-
|
|
(84.7)
|
-
|
Other income,
net
|
|
0.5
|
-
|
|
0.4
|
2.2
|
|
|
(68.0)
|
10.4
|
|
(43.3)
|
33.0
|
Project
income
|
|
(57.1)
|
24.2
|
|
(3.3)
|
63.0
|
|
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
|
|
Administration
|
|
5.7
|
6.9
|
|
17.6
|
23.0
|
Interest,
net
|
|
20.0
|
41.0
|
|
87.9
|
91.3
|
Foreign
exchange loss (gain)
|
|
(3.4)
|
(21.7)
|
|
19.1
|
(49.1)
|
Other income,
net
|
|
(1.7)
|
-
|
|
(3.9)
|
(3.1)
|
|
|
20.6
|
26.2
|
|
120.7
|
62.1
|
(Loss) income from
continuing operations before income taxes
|
|
(77.7)
|
(2.0)
|
|
(124.0)
|
0.9
|
Income tax (benefit)
expense
|
|
2.6
|
1.4
|
|
(14.2)
|
(0.3)
|
(Loss) income from
continuing operations
|
|
(80.3)
|
(3.4)
|
|
(109.8)
|
1.2
|
Net income from
discontinued operations, net of tax (1)
|
|
-
|
(0.5)
|
|
-
|
20.6
|
Net (loss)
income
|
|
(80.3)
|
(3.9)
|
|
(109.8)
|
21.8
|
Net (loss)
attributable to noncontrolling interests
|
|
-
|
-
|
|
-
|
(11.0)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
2.1
|
2.1
|
|
6.4
|
6.7
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
($82.4)
|
($6.0)
|
|
($116.2)
|
$26.1
|
Basic and diluted
earnings per share:
|
|
|
|
|
|
|
(Loss) from
continuing operations attributable to Atlantic Power
Corporation
|
|
($0.69)
|
($0.05)
|
|
($0.96)
|
($0.05)
|
Income from
discontinued operations, net of tax
|
|
-
|
-
|
|
-
|
0.26
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
($0.69)
|
($0.05)
|
|
($0.96)
|
$0.21
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
119.3
|
122.1
|
|
120.9
|
121.8
|
Diluted
|
|
119.3
|
122.2
|
|
120.9
|
121.9
|
|
|
|
|
|
|
|
Dividends paid per
common share:
|
|
$-
|
$0.02
|
|
$-
|
$0.07
|
(1)
Includes contributions from the Wind Projects, which are components
of discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
Table 9 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
2016
|
2015
|
Cash provided by
operating activities:
|
|
|
|
|
Net (loss)
income
|
|
|
($109.8)
|
$21.8
|
Adjustments to
reconcile to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
|
75.6
|
94.1
|
Gain from discontinued
operations
|
|
|
-
|
(47.2)
|
Gain on sale of
development project and other assets
|
|
|
-
|
(2.3)
|
Gain on purchase and
cancellation of convertible debentures
|
|
|
(4.7)
|
(3.1)
|
Loss on disposal of
fixed assets
|
|
|
0.2
|
-
|
Stock-based
compensation expense
|
|
|
1.4
|
2.1
|
Long-lived assets and
goodwill impairment
|
|
|
84.7
|
-
|
Equity in earnings
from unconsolidated affiliates
|
|
|
(27.9)
|
(28.3)
|
Distributions from
unconsolidated affiliates
|
|
|
36.5
|
40.0
|
Unrealized foreign
exchange gain
|
|
|
19.1
|
(49.3)
|
Change in fair value
of derivative instruments
|
|
|
(20.0)
|
(8.0)
|
Change in deferred
income taxes
|
|
|
(16.8)
|
23.6
|
Change in other
operating balances
|
|
|
|
|
Accounts
receivable
|
|
|
-
|
4.3
|
Inventory
|
|
|
1.1
|
1.7
|
Prepayments and other
assets
|
|
|
42.1
|
20.2
|
Accounts
payable
|
|
|
0.3
|
(6.1)
|
Accruals and other
liabilities
|
|
|
10.1
|
4.2
|
Cash provided by
operating activities
|
|
|
91.9
|
67.7
|
|
|
|
|
|
Cash provided by
investing activities:
|
|
|
|
|
Change in restricted
cash
|
|
|
2.6
|
8.0
|
Proceeds from sale of
assets and equity investments, net
|
|
|
-
|
326.3
|
Contribution to
unconsolidated affiliate
|
|
|
-
|
(0.5)
|
Capitalized
development costs
|
|
|
-
|
(0.8)
|
Reimbursement of
construction cost
|
|
|
4.7
|
-
|
Purchase of property,
plant and equipment
|
|
|
(6.5)
|
(9.4)
|
Cash provided by
investing activities
|
|
|
0.8
|
323.6
|
|
|
|
|
|
Cash used in
financing activities:
|
|
|
|
|
Proceeds from senior
secured term loan facility, net of discount
|
|
|
679.0
|
-
|
Common share
repurchases
|
|
|
(13.9)
|
-
|
Repayment of corporate
and project-level debt
|
|
|
(526.4)
|
(387.1)
|
Repayment of
convertible debentures
|
|
|
(187.4)
|
(18.7)
|
Deferred financing
costs
|
|
|
(16.2)
|
-
|
Dividends paid to
common shareholders
|
|
|
-
|
(8.5)
|
Dividends paid to
noncontrolling interests
|
|
|
-
|
(3.8)
|
Dividends paid to
preferred shareholders
|
|
|
(6.4)
|
(6.7)
|
Cash used in
financing activities
|
|
|
(71.3)
|
(424.8)
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
21.4
|
(33.5)
|
Less cash at
discontinued operations
|
|
-
|
3.9
|
Cash and cash
equivalents at beginning of period at discontinued
operations
|
|
-
|
-
|
Cash and cash
equivalents at beginning of period
|
|
|
72.4
|
106.0
|
Cash and cash
equivalents at end of period
|
|
|
$93.8
|
$76.4
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Interest
paid
|
|
|
$43.3
|
$75.5
|
Income taxes paid,
net
|
|
|
2.8
|
4.1
|
Accruals for
construction in progress
|
|
|
0.4
|
1.2
|
Non-GAAP Disclosures
Project Adjusted EBITDA is not a measure recognized under
GAAP and does not have a standardized meaning prescribed by GAAP,
and is therefore unlikely to be comparable to similar measures
presented by other companies. Investors are cautioned that
the Company may calculate this non-GAAP measure in a manner that is
different from other companies. The most directly comparable
GAAP measure is Project income (loss). 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. A reconciliation of Project Adjusted EBITDA to
Project income (loss) and to Net income (loss) by segment and on a
consolidated basis is provided in Tables 10A through 10D on pages
16 and 17 of this news release.
Cash Distributions from Projects is the amount of cash
distributed by the projects to the Company out of available project
cash flow after all project-level operating costs, interest
payments, principal repayment, capital expenditures and working
capital requirements. It is not a non-GAAP measure.
Project Adjusted EBITDA, a non-GAAP measure, is the most comparable
measure, but it is before debt service, capital expenditures and
working capital requirements. The Company has provided a
bridge of Project Adjusted EBITDA to Cash Distributions from
Projects in Tables 11A through 11D on pages 18 and 19 of this
release.
Table 12 (page 20) presents Project income (loss) by project for
selected projects for the three and nine months ended September 30, 2016 and the comparable periods in
2015. Table 13 (page 21) presents Project Adjusted EBITDA by
project for the same projects as shown in Table 12 for the three
and nine months ended September 30,
2016 and the comparable periods in 2015. Table 13 also
provides a reconciliation of Project Adjusted EBITDA to Net Income
(loss) for the three- and nine-month periods ended September 30, 2016 and September 30, 2015.
Atlantic Power
Corporation
|
Table 10A –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Three Months Ended
September 30, 2016
|
Unaudited
|
|
|
|
|
|
|
East
|
West
|
Canada
|
Un-alloc.
Corp
|
Consol.
|
Net (loss) income
attributable to Atlantic Power Corporation
|
($8.6)
|
$11.4
|
($62.4)
|
($22.8)
|
($82.4)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
-
|
-
|
-
|
2.1
|
2.1
|
Net (loss)
attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
Net (loss)
income
|
(8.6)
|
11.4
|
(62.4)
|
(20.7)
|
(80.3)
|
Net income from
discontinued operations, net of tax
|
-
|
-
|
-
|
-
|
-
|
Net income (loss)
from continuing operations
|
(8.6)
|
11.4
|
(62.4)
|
(20.7)
|
(80.3)
|
Income tax (benefit)
expense
|
-
|
-
|
-
|
2.6
|
2.6
|
Income (loss) from
continuing operations before income taxes
|
(8.6)
|
11.4
|
(62.4)
|
(18.1)
|
(77.7)
|
Administration
|
-
|
-
|
-
|
5.7
|
5.7
|
Interest,
net
|
-
|
-
|
-
|
20.0
|
20.0
|
Foreign exchange loss
(gain)
|
-
|
-
|
-
|
(3.4)
|
(3.4)
|
Other income,
net
|
-
|
-
|
-
|
(1.7)
|
(1.7)
|
Project income
(loss)
|
(8.6)
|
11.4
|
(62.4)
|
2.5
|
(57.1)
|
Change in fair value
of derivative instruments
|
(1.2)
|
-
|
(5.6)
|
(2.2)
|
(9.0)
|
Depreciation and
amortization
|
11.0
|
9.9
|
9.4
|
0.1
|
30.4
|
Interest,
net
|
2.8
|
-
|
-
|
-
|
2.8
|
Impairment
|
15.4
|
-
|
69.3
|
-
|
84.7
|
Other project
expense
|
-
|
-
|
-
|
(0.5)
|
(0.5)
|
Project Adjusted
EBITDA
|
$19.4
|
$21.3
|
$10.7
|
($0.1)
|
$51.3
|
Atlantic Power
Corporation
|
Table 10B –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Three Months Ended
September 30, 2015
|
Unaudited
|
|
|
|
|
|
|
East
|
West
|
Canada
|
Un-alloc.
Corp
|
Consol.
|
Net (loss) income
attributable to Atlantic Power Corporation
|
$12.4
|
$11.5
|
$1.9
|
($31.8)
|
($6.0)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
-
|
-
|
-
|
2.1
|
2.1
|
Net (loss)
attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
Net (loss)
income
|
12.4
|
11.5
|
1.9
|
(29.7)
|
(3.9)
|
Net income from
discontinued operations, net of tax
|
-
|
-
|
-
|
0.5
|
0.5
|
Net income (loss)
from continuing operations
|
12.4
|
11.5
|
1.9
|
(29.2)
|
(3.4)
|
Income tax (benefit)
expense
|
-
|
-
|
-
|
1.4
|
1.4
|
Income (loss) from
continuing operations before income taxes
|
12.4
|
11.5
|
1.9
|
(27.8)
|
(2.0)
|
Administration
|
-
|
-
|
-
|
6.9
|
6.9
|
Interest,
net
|
-
|
-
|
-
|
41.0
|
41.0
|
Foreign exchange loss
(gain)
|
-
|
-
|
-
|
(21.7)
|
(21.7)
|
Other income,
net
|
-
|
-
|
-
|
-
|
-
|
Project income
(loss)
|
12.4
|
11.5
|
1.9
|
(1.6)
|
24.2
|
Change in fair value
of derivative instruments
|
1.9
|
-
|
(6.1)
|
0.6
|
(3.6)
|
Depreciation and
amortization
|
10.7
|
9.9
|
11.7
|
0.5
|
32.8
|
Interest,
net
|
2.4
|
-
|
0.1
|
-
|
2.5
|
Other project
expense
|
-
|
-
|
-
|
0.1
|
0.1
|
Project Adjusted
EBITDA
|
$27.4
|
$21.4
|
$7.6
|
($0.4)
|
$56.0
|
Atlantic Power
Corporation
|
Table 10C –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Nine Months Ended
September 30, 2016
|
Unaudited
|
|
|
|
|
|
|
East
|
West
|
Canada
|
Un-alloc.
Corp
|
Consol.
|
Net (loss) income
attributable to Atlantic Power Corporation
|
$16.9
|
$13.8
|
($33.1)
|
($113.8)
|
($116.2)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
-
|
-
|
-
|
6.4
|
6.4
|
Net (loss)
attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
Net (loss)
income
|
16.9
|
13.8
|
(33.1)
|
(107.4)
|
(109.8)
|
Net income from
discontinued operations, net of tax
|
-
|
-
|
-
|
-
|
-
|
Net income (loss)
from continuing operations
|
16.9
|
13.8
|
(33.1)
|
(107.4)
|
(109.8)
|
Income tax (benefit)
expense
|
-
|
-
|
-
|
(14.2)
|
(14.2)
|
Income (loss) from
continuing operations before income taxes
|
16.9
|
13.8
|
(33.1)
|
(121.6)
|
(124.0)
|
Administration
|
-
|
-
|
-
|
17.6
|
17.6
|
Interest,
net
|
-
|
-
|
-
|
87.9
|
87.9
|
Foreign exchange loss
(gain)
|
-
|
-
|
-
|
19.1
|
19.1
|
Other income,
net
|
-
|
-
|
-
|
(3.9)
|
(3.9)
|
Project income
(loss)
|
16.9
|
13.8
|
(33.1)
|
(0.9)
|
(3.3)
|
Change in fair value
of derivative instruments
|
(3.0)
|
-
|
(17.7)
|
0.6
|
(20.1)
|
Depreciation and
amortization
|
33.0
|
29.6
|
27.7
|
0.5
|
90.8
|
Interest,
net
|
8.2
|
-
|
-
|
-
|
8.2
|
Impairment
|
15.4
|
-
|
69.3
|
-
|
84.7
|
Other project
expense
|
-
|
-
|
-
|
(0.4)
|
(0.4)
|
Project Adjusted
EBITDA
|
$70.5
|
$43.4
|
$46.2
|
($0.2)
|
$159.9
|
Atlantic Power
Corporation
|
Table 10D –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Nine Months Ended
September 30, 2015
|
Unaudited
|
|
|
|
|
|
|
East
|
West
|
Canada
|
Un-alloc.
Corp
|
Consol.
|
Net (loss) income
attributable to Atlantic Power Corporation
|
$40.0
|
$7.3
|
$17.9
|
($39.1)
|
$26.1
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
-
|
-
|
-
|
6.7
|
6.7
|
Net (loss)
attributable to noncontrolling interests
|
-
|
-
|
-
|
(11.0)
|
(11.0)
|
Net (loss)
income
|
40.0
|
7.3
|
17.9
|
(43.4)
|
21.8
|
Net income from
discontinued operations, net of tax
|
-
|
-
|
-
|
(20.6)
|
(20.6)
|
Net income (loss)
from continuing operations
|
40.0
|
7.3
|
17.9
|
(64.0)
|
1.2
|
Income tax (benefit)
expense
|
-
|
-
|
-
|
(0.3)
|
(0.3)
|
Income (loss) from
continuing operations before income taxes
|
40.0
|
7.3
|
17.9
|
(64.3)
|
0.9
|
Administration
|
-
|
-
|
-
|
23.0
|
23.0
|
Interest,
net
|
-
|
-
|
-
|
91.3
|
91.3
|
Foreign exchange loss
(gain)
|
-
|
-
|
-
|
(49.1)
|
(49.1)
|
Other income,
net
|
-
|
-
|
-
|
(3.1)
|
(3.1)
|
Project income
(loss)
|
40.0
|
7.3
|
17.9
|
(2.2)
|
63.0
|
Change in fair value
of derivative instruments
|
1.6
|
-
|
(11.6)
|
1.3
|
(8.7)
|
Depreciation and
amortization
|
31.8
|
29.7
|
36.5
|
0.9
|
98.9
|
Interest,
net
|
7.6
|
-
|
0.1
|
-
|
7.7
|
Other project
expense
|
-
|
0.1
|
0.1
|
(2.6)
|
(2.4)
|
Project Adjusted
EBITDA
|
$81.0
|
$37.1
|
$43.0
|
($2.6)
|
$158.5
|
Atlantic Power
Corporation
|
Table 11A – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Three months ended
September 30, 2016
|
Unaudited
|
Segment
|
Project
Adjusted
EBITDA
|
Repayment
of long-
term debt
|
Interest
expense,
net
|
Capital
expenditures
|
Other,
including
changes in
working capital
|
Cash
Distributions
from Projects
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$8.2
|
($3.7)
|
($2.0)
|
($3.6)
|
$2.8
|
$1.7
|
Equity
method
|
11.2
|
-
|
(0.4)
|
(0.1)
|
2.8
|
13.5
|
Total
|
19.4
|
(3.7)
|
(2.4)
|
(3.7)
|
5.6
|
15.2
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
18.1
|
-
|
-
|
-
|
(2.2)
|
15.9
|
Equity
method
|
3.2
|
-
|
-
|
-
|
0.8
|
4.0
|
Total
|
21.3
|
-
|
-
|
-
|
(1.4)
|
19.9
|
Canada
|
|
|
|
|
|
|
Consolidated
|
10.7
|
(0.0)
|
(0.0)
|
(0.2)
|
4.9
|
15.4
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
10.7
|
(0.0)
|
(0.0)
|
(0.2)
|
4.9
|
15.4
|
Total
consolidated
|
37.0
|
(3.7)
|
(2.0)
|
(3.7)
|
5.4
|
33.0
|
Total equity
method
|
14.4
|
-
|
(0.4)
|
(0.1)
|
3.6
|
17.5
|
Un-allocated
corporate
|
(0.1)
|
-
|
-
|
(0.0)
|
0.1
|
(0.1)
|
Total
|
$51.3
|
($3.7)
|
($2.4)
|
($3.9)
|
$9.1
|
$50.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
Table 11B – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Three months ended
September 30, 2015
|
Unaudited
|
|
|
|
|
|
|
Segment
|
Project
Adjusted
EBITDA
|
Repayment
of long-
term debt
|
Interest
expense,
net
|
Capital
expenditures
|
Other,
including
changes in
working capital
|
Cash
Distributions
from Projects
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$17.8
|
($4.3)
|
($1.7)
|
($3.2)
|
($1.6)
|
$7.0
|
Equity
method
|
9.6
|
-
|
(0.5)
|
(0.1)
|
5.1
|
14.1
|
Total
|
27.4
|
(4.3)
|
(2.1)
|
(3.3)
|
3.4
|
21.1
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
18.1
|
-
|
-
|
(0.6)
|
(3.3)
|
14.2
|
Equity
method
|
3.3
|
-
|
-
|
-
|
0.7
|
4.0
|
Total
|
21.4
|
-
|
-
|
(0.6)
|
(2.6)
|
18.2
|
Canada
|
|
|
|
|
|
|
Consolidated
|
7.6
|
(0.1)
|
(0.0)
|
(1.6)
|
6.2
|
12.1
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
7.6
|
(0.1)
|
(0.0)
|
(1.6)
|
6.2
|
12.1
|
Total
consolidated
|
43.5
|
(4.4)
|
(1.7)
|
(5.4)
|
1.3
|
33.3
|
Total equity
method
|
12.9
|
-
|
(0.5)
|
(0.1)
|
5.8
|
18.1
|
Un-allocated
corporate
|
(0.4)
|
-
|
-
|
0.3
|
0.2
|
0.1
|
Total
|
$56.0
|
($4.4)
|
($2.1)
|
($5.2)
|
$7.3
|
$51.5
|
Atlantic Power
Corporation
|
Table 11C – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Nine months ended
September 30, 2016
|
Unaudited
|
Segment
|
Project
Adjusted
EBITDA
|
Repayment
of long-
term debt
|
Interest
expense,
net
|
Capital
expenditures
|
Other,
including
changes in
working capital
|
Cash
Distributions
from Projects
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$39.8
|
($7.9)
|
($5.4)
|
($0.7)
|
$2.2
|
$27.9
|
Equity
method
|
30.8
|
-
|
(1.2)
|
(0.2)
|
(2.0)
|
27.4
|
Total
|
70.5
|
(7.9)
|
(6.7)
|
(0.9)
|
0.3
|
55.3
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
33.8
|
-
|
-
|
0.0
|
(5.2)
|
28.7
|
Equity
method
|
9.6
|
-
|
-
|
-
|
1.4
|
11.0
|
Total
|
43.4
|
-
|
-
|
0.0
|
(3.8)
|
39.6
|
Canada
|
|
|
|
|
|
|
Consolidated
|
46.2
|
(0.1)
|
(0.0)
|
(0.7)
|
0.3
|
45.7
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
46.2
|
(0.1)
|
(0.0)
|
(0.7)
|
0.3
|
45.7
|
Total
consolidated
|
119.8
|
(8.0)
|
(5.5)
|
(1.4)
|
(2.6)
|
102.2
|
Total equity
method
|
40.4
|
-
|
(1.2)
|
(0.2)
|
(0.6)
|
38.4
|
Un-allocated
corporate
|
(0.2)
|
-
|
-
|
0.3
|
(0.0)
|
(0.0)
|
Total
|
$159.9
|
($8.0)
|
($6.7)
|
($1.4)
|
($3.3)
|
$140.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
Table 11D – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Nine months ended
September 30, 2015
|
Unaudited
|
|
|
|
|
|
|
Segment
|
Project
Adjusted
EBITDA
|
Repayment
of long-
term debt
|
Interest
expense,
net
|
Capital
expenditures
|
Other,
including
changes in
working capital
|
Cash
Distributions
from Projects
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$50.4
|
($10.6)
|
($5.0)
|
($7.2)
|
($1.8)
|
$25.7
|
Equity
method
|
30.6
|
-
|
(1.4)
|
(0.2)
|
3.6
|
32.7
|
Total
|
81.0
|
(10.6)
|
(6.4)
|
(7.4)
|
1.8
|
58.4
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
27.3
|
-
|
-
|
(0.6)
|
(4.0)
|
22.7
|
Equity
method
|
9.7
|
-
|
-
|
-
|
0.9
|
10.6
|
Total
|
37.1
|
-
|
-
|
(0.6)
|
(3.2)
|
33.3
|
Canada
|
|
|
|
|
|
|
Consolidated
|
43.0
|
(0.2)
|
(0.0)
|
(2.5)
|
6.9
|
47.2
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
43.0
|
(0.2)
|
(0.0)
|
(2.5)
|
6.9
|
47.2
|
Total
consolidated
|
120.8
|
(10.8)
|
(5.1)
|
(10.4)
|
1.0
|
95.6
|
Total equity
method
|
40.3
|
-
|
(1.4)
|
(0.2)
|
4.5
|
43.2
|
Un-allocated
corporate
|
(2.6)
|
-
|
-
|
0.2
|
2.3
|
(0.1)
|
Total
|
$158.5
|
($10.8)
|
($6.5)
|
($10.3)
|
$7.8
|
$138.8
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 12 –
Project Income by Project (for Selected
Projects)
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
Segment /
Project
|
Accounting
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Cadillac
|
Consolidated
|
$0.9
|
$0.2
|
|
$2.5
|
$1.8
|
Curtis
Palmer
|
Consolidated
|
(16.0)
|
1.4
|
|
(6.3)
|
9.2
|
Morris
|
Consolidated
|
(5.1)
|
3.6
|
|
(0.7)
|
10.4
|
Piedmont
|
Consolidated
|
3.0
|
0.5
|
|
(5.4)
|
(4.3)
|
Kenilworth
|
Consolidated
|
0.3
|
0.1
|
|
(0.7)
|
0.5
|
Chambers
|
Equity
method
|
1.4
|
1.4
|
|
4.6
|
5.2
|
Orlando
|
Equity
method
|
6.4
|
5.0
|
|
23.0
|
16.9
|
Selkirk
|
Equity
method
|
0.5
|
0.2
|
|
(0.1)
|
0.3
|
Total
|
|
|
(8.6)
|
12.4
|
|
16.9
|
40.0
|
West
U.S.
|
|
|
|
|
|
|
|
Manchief
|
Consolidated
|
0.6
|
1.0
|
|
1.6
|
(5.9)
|
Naval
Station
|
Consolidated
|
3.0
|
2.7
|
|
3.5
|
4.1
|
North
Island
|
Consolidated
|
2.3
|
2.3
|
|
3.6
|
3.7
|
Naval Training
Center
|
Consolidated
|
1.4
|
1.4
|
|
1.8
|
1.9
|
Oxnard
|
Consolidated
|
3.4
|
3.4
|
|
1.4
|
1.5
|
Frederickson
|
Equity
method
|
0.9
|
0.7
|
|
1.4
|
1.8
|
Koma
Kulshan
|
Equity
method
|
(0.2)
|
-
|
|
0.5
|
0.2
|
Total
|
|
|
11.4
|
11.5
|
|
13.8
|
7.3
|
Canada
|
|
|
|
|
|
|
|
Calstock
|
Consolidated
|
0.7
|
1.7
|
|
4.7
|
5.3
|
Kapuskasing
|
Consolidated
|
(6.5)
|
0.5
|
|
(0.6)
|
5.2
|
Mamquam
|
Consolidated
|
(50.1)
|
(1.3)
|
|
(44.2)
|
1.5
|
Nipigon
|
Consolidated
|
0.4
|
1.6
|
|
4.5
|
3.6
|
North Bay
|
Consolidated
|
(9.0)
|
(0.3)
|
|
(2.3)
|
4.7
|
Williams
Lake
|
Consolidated
|
2.8
|
0.4
|
|
5.6
|
(1.6)
|
Other (Tunis and
Moresby Lake)
|
Consolidated
|
(0.7)
|
(0.7)
|
|
(0.8)
|
(0.8)
|
Total
|
|
|
(62.4)
|
1.9
|
|
(33.1)
|
17.9
|
|
|
|
|
|
|
|
|
Totals
|
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
(68.6)
|
18.5
|
|
(31.8)
|
40.8
|
Equity method
projects
|
|
|
9.0
|
7.3
|
|
29.4
|
24.4
|
Un-allocated
corporate
|
|
|
2.5
|
(1.6)
|
|
(0.9)
|
(2.2)
|
Total Project
Income
|
|
|
($57.1)
|
$24.2
|
|
($3.3)
|
$63.0
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 13 – Project
Adjusted EBITDA by Project (for Selected Projects) (in millions of
U.S. dollars), Unaudited
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
Segment /
Project
|
Accounting
|
|
2016
|
2015
|
|
2016
|
2015
|
East
U.S.
|
|
|
|
|
|
|
Cadillac
|
Consolidated
|
$2.3
|
$1.6
|
|
$6.7
|
$6.1
|
Curtis
Palmer
|
Consolidated
|
3.3
|
5.4
|
|
20.7
|
20.9
|
Morris
|
Consolidated
|
(4.0)
|
4.5
|
|
3.9
|
13.3
|
Piedmont
|
Consolidated
|
5.7
|
5.6
|
|
7.3
|
7.8
|
Kenilworth
|
Consolidated
|
0.9
|
0.8
|
|
1.2
|
2.4
|
Chambers
|
Equity
method
|
4.1
|
4.0
|
|
13.0
|
13.6
|
Orlando
|
Equity
method
|
6.6
|
5.4
|
|
17.8
|
16.7
|
Selkirk
|
Equity
method
|
0.5
|
0.2
|
|
(0.1)
|
0.3
|
Total
|
|
|
19.4
|
27.4
|
|
70.5
|
81.0
|
West
U.S.
|
|
|
|
|
|
|
|
Manchief
|
Consolidated
|
3.4
|
3.8
|
|
10.0
|
2.4
|
Naval
Station
|
Consolidated
|
4.6
|
4.3
|
|
8.3
|
8.9
|
North
Island
|
Consolidated
|
3.4
|
3.3
|
|
6.8
|
7.0
|
Naval Training
Center
|
Consolidated
|
2.2
|
2.2
|
|
4.2
|
4.3
|
Oxnard
|
Consolidated
|
4.5
|
4.5
|
|
4.6
|
4.8
|
Frederickson
|
Equity
method
|
3.3
|
3.2
|
|
8.8
|
9.2
|
Koma
Kulshan
|
Equity
method
|
(0.1)
|
0.1
|
|
0.8
|
0.5
|
Total
|
|
|
21.3
|
21.4
|
|
43.4
|
37.1
|
Canada
|
|
|
|
|
|
|
|
Calstock
|
Consolidated
|
1.1
|
2.3
|
|
6.2
|
7.0
|
Kapuskasing
|
Consolidated
|
1.0
|
(0.3)
|
|
4.1
|
4.1
|
Mamquam
|
Consolidated
|
0.6
|
(0.9)
|
|
7.2
|
2.7
|
Nipigon
|
Consolidated
|
3.6
|
3.3
|
|
13.2
|
13.2
|
North Bay
|
Consolidated
|
(0.2)
|
(1.2)
|
|
3.7
|
3.6
|
Williams
Lake
|
Consolidated
|
5.0
|
4.9
|
|
11.9
|
12.5
|
Other (Tunis and
Moresby Lake)
|
Consolidated
|
(0.4)
|
(0.5)
|
|
(0.1)
|
(0.1)
|
Total
|
|
|
10.7
|
7.6
|
|
46.2
|
43.0
|
Totals
|
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
37.0
|
43.5
|
|
119.8
|
120.8
|
Equity method
projects
|
|
|
14.4
|
12.9
|
|
40.4
|
40.3
|
Un-allocated
corporate
|
|
|
(0.1)
|
(0.4)
|
|
(0.2)
|
(2.6)
|
Total Project
Adjusted EBITDA
|
|
|
$51.3
|
$56.0
|
|
$159.9
|
$158.5
|
Other project
expense
|
|
|
($0.5)
|
$0.1
|
|
($0.4)
|
($2.4)
|
Impairment
|
|
|
84.7
|
-
|
|
84.7
|
-
|
Interest,
net
|
|
|
2.8
|
2.5
|
|
8.2
|
7.7
|
Depreciation
and amortization
|
|
|
30.4
|
32.8
|
|
90.8
|
98.9
|
Change in fair
value of derivative instruments
|
|
(9.0)
|
(3.6)
|
|
(20.1)
|
(8.7)
|
Project
income
|
|
|
($57.1)
|
$24.2
|
|
($3.3)
|
$63.0
|
Other income,
net
|
|
|
(1.7)
|
-
|
|
(3.9)
|
(3.1)
|
Foreign
exchange loss (gain)
|
|
|
(3.4)
|
(21.7)
|
|
19.1
|
(49.1)
|
Interest,
net
|
|
|
20.0
|
41.0
|
|
87.9
|
91.3
|
Administration
|
|
|
5.7
|
6.9
|
|
17.6
|
23.0
|
(Loss) from
continuing operations before income taxes
|
|
(77.7)
|
(2.0)
|
|
(124.0)
|
0.9
|
Income tax (benefit)
expense
|
|
|
2.6
|
1.4
|
|
(14.2)
|
(0.3)
|
Net (loss) income
from continuing operations
|
|
(80.3)
|
(3.4)
|
|
(109.8)
|
1.2
|
Net income from
discontinued operations, net of tax
|
|
-
|
0.5
|
|
-
|
(20.6)
|
Net (loss)
income
|
|
(80.3)
|
(3.9)
|
|
(109.8)
|
21.8
|
Net (loss)
attributable to noncontrolling interests
|
|
-
|
-
|
|
-
|
(11.0)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
2.1
|
2.1
|
|
6.4
|
6.7
|
Net (loss) income
attributable to Atlantic Power Corporation
|
($82.4)
|
($6.0)
|
|
($116.2)
|
$26.1
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-third-quarter-2016-results-and-narrows-2016-guidance-range-300358711.html
SOURCE Atlantic Power Corporation