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CNW Group Algonquin Power & Utilities Corp. Announces 2018 First Quarter Financial Results Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) ("APUC" or the "Company") today announced financial results for the first quarter ended March 31, 2018. Effective the first quarter of 2018, APUC's interim and annual consolidated financial statements are being reported in United States dollars ("USD" or "U.S.$"), unless otherwise noted. "The first quarter of 2018 marked the completion of transactions that serve as the foundation of our international growth strategy, with the successful formation of the AAGES Joint Venture and an expanded interest in Atlantica," said Ian Robertson, Chief Executive Officer of APUC. "We also made important progress in our commitment to sustainability and reducing customer costs through the transformation of Liberty Utilities' generating fleet toward more wind capacity. We remain highly focused on execution of our growth plan, which we believe supports growth in earnings and cash flows and the delivery of long-term value to our shareholders." Q1 2018 Financial Highlights -- Revenue of U.S.$494.8 million, a year-over-year increase of 17% -- Adjusted EBITDA(1) of U.S.$279.2 million, a year-over-year increase of 45% -- Adjusted net earnings(1) per share of U.S.$0.32, a year-over-year increase of 68% -- Adjusted Funds from Operations(1) of U.S.$179.9 million, a year-over-year increase of 15% Dividend Increase - On May 10, 2018, APUC's Board of Directors approved a 10% dividend increase from a total annual dividend of U.S. $0.4660 to a total annual dividend of U.S. $0.5128, to be paid quarterly at a rate of U.S. $0.1282 per common share, up from U.S. $0.1165 per common share. Management believes that the dividend increase is consistent with APUC's stated strategy of delivering total shareholder return comprised of an attractive current dividend yield and capital appreciation. Key Financial Information All dollar amounts in U.S.$ millions except per Q1 2018 Q1 2017 Variance share information ----------------- Revenue 494.8 421.7 17% ------- ----- ----- --- Net earnings attributable to shareholders 17.6 19.3 (9)% ----------------------------------------- ---- ---- --- Per share 0.04 0.05 (20)% --------- ---- ---- ---- Adjusted net earnings(1) 141.0 66.5 112% ----------------------- ----- ---- --- Per share 0.32 0.19 68% --------- ---- ---- --- Adjusted EBITDA(1) 279.2 192.3 45% ----------------- ----- ----- --- Adjusted Funds from Operations(1) 179.9 156.7 15% -------------------------------- ----- ----- --- Dividend per share 0.1165 0.1165 n/c ------------------ ------ ------ --- 1 Please refer to Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures at the end of this document for further details. APUC Business Highlights -- Completion of AAGES Joint Venture - On March 9, 2018, APUC completed the previously announced formation of the AAGES Joint Venture with Abengoa S.A. ("Abengoa"). -- Investment in Atlantica Yield plc - Contemporaneous with the formation of AAGES, APUC completed the purchase of the 25% equity interest in Atlantica Yield plc ("Atlantica"), for a total purchase price of approximately U.S.$608 million. Subsequent to quarter-end, on April 17, 2018, APUC announced that it entered into an agreement to purchase an additional approximately 16.5% equity interest in Atlantica, for a total purchase price of approximately U.S.$345 million, which is expected to close in the second or third quarter of 2018. -- Completion of Common Equity Financing - Subsequent to quarter-end, on April 24, 2018, APUC completed a C$445 million common equity financing. -- Change to U.S. Dollar Reporting - Over 90% of APUC's consolidated revenue, EBITDA, and assets are derived from operations in the United States, APUC's dividend is denominated in U.S. dollars and the Company's common shares are listed on the New York Stock Exchange. In recognition, effective the first quarter of 2018, APUC's interim and annual consolidated financial statements are being reported in U.S. dollars. The Company believes that the change in reporting to U.S. dollars will provide improved information to investors and allow for better assessment of its results without the effects of the change in currency on 90% of its operations. -- U.S. Tax Reform - The financial results for Q1 2018 reflect the year to date impacts of income tax reform in the United States. Liberty Power Group Highlights -- Completion of Great Bay Solar Project - On March 29, 2018, the Great Bay Solar Facility achieved commercial operations. The project consists of a 75 MW solar powered electric generating development project comprised of four sites located in Somerset County, Maryland Liberty Utilities Group Highlights -- Continued Progress on "Greening the Fleet" - Subsequent to quarter-end, the staff of the Missouri Public Service Commission, as well the intervenor representing large industrial users entered into a stipulation agreement intended to reduce customer costs through the development of 600 MW of wind energy generation. Final orders from all jurisdictions are anticipated by the third quarter of 2018. -- Settlement of EnergyNorth Rate Case - Subsequent to quarter-end, on April 27, 2018, the New Hampshire Public Utilities Commission issued its order approving a net $11.1 million revenue requirement increase. Importantly, the new weather de-coupling mechanisms included in this order are expected to bring lower volatility to customer bills and Liberty Utilities operating profit. APUC's supplemental information is available on the web site at www.AlgonquinPowerandUtilities.com. Earnings Conference Call APUC will hold an earnings conference call at 10:00 a.m. eastern time on Friday, May 11, 2018, hosted by Chief Executive Officer, Ian Robertson and Chief Financial Officer, David Bronicheski. Date: Friday, May 11, 2018 Time: 10:00 a.m. ET Conference Call Access: Toll Free Canada/US: 1-800-319-4610 Toronto local: 416-915-3239 Please ask to join the Algonquin Power & Utilities Corp. conference call Presentation Access: https://services.choruscall.ca/links/ algonquinpower20180511.html Presentation also available at: www.algonquinpowerandutilities.com ----------------------------------- Call Replay: Toll Free Canada/US: 1-855-669-9658 (available until May 25) Vancouver local: 1-604-674-8052 Access code: 2150 |