ATCO Reports 2013 First Quarter Earnings

CALGARY, ALBERTA -- (Marketwired) -- 04/26/13 -- ATCO Ltd. (TSX:ACO.X) (TSX:ACO.Y)

ATCO today reported higher Adjusted Earnings in the first quarter of 2013 driven by continued strong contributions from ATCO Structures & Logistics' worldwide activities and continued investment in Alberta's utility infrastructure.

Adjusted Earnings were $120 million for the quarter ended March 31, 2013 compared to $115 million in the same period of 2012. Earnings attributable to Class I and Class II Shares were $117 million for the quarter ended March 31, 2013 compared to $119 million in the same period of 2012. Adjusted Earnings will differ from earnings attributable to Class I and Class II Shares because of the timing of recoveries from or refunds to customers of amounts that are deferred by the Utilities for regulatory purposes; however, over time there is no difference.

ATCO Structures & Logistics' strong performance in modular structures operations continued in the first quarter of 2013 due to construction of BHP Billiton's Jansen Potash Project in Saskatchewan and higher fleet sales in North America, offset by reduced earnings from the three large liquefied natural gas projects in Australia that were under construction at this time last year and are now substantially complete.

Growth in the rate base continues to have a positive impact on ATCO Electric. The Hanna Region Transmission Development Project, which will provide major transmission reinforcement in southeast Alberta, is nearing completion, and is expected to be in-service by the end of the second quarter of 2013. Construction commenced on the Eastern Alberta Transmission Line following receipt of project approval in late 2012. The project will provide additional transmission capacity to Alberta's existing electricity transmission system. Together, ATCO Electric, ATCO Gas, and ATCO Pipelines invested $511 million in utility infrastructure in the first quarter of 2013 to support Alberta growth.

Adjusted Earnings for the quarter were partially offset by lower realized prices on short-term forward power sales contracts for ATCO Power's Alberta generating plants and an unfavourable arbitration decision that reduced earnings for the Sheerness plant.

RECENT DEVELOPMENTS

--  ATCO declared a second quarter dividend for 2013 of 37.5 cents per Class
    I Non-Voting and Class II Voting Share. ATCO's annual dividend per share
    has increased for 20 consecutive years. 
    
--  ATCO's subsidiary, Canadian Utilities Limited, issued $175 million of
    4.5% Cumulative Redeemable Second Preferred shares at a price of $25.00
    per share. 
    
--  ATCO Ltd. announced on February 21, 2013, that it will ask its share
    owners at the May 16, 2013, annual and special meeting to approve a
    special resolution to increase the number of Class I Non-Voting Shares
    that it is authorized to issue. If the share owners approve this special
    resolution, ATCO intends to split its Class I Non- Voting Shares and
    Class II Voting Shares on a two-for-one basis by way of a share dividend
    in 2013. 

FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS

A financial summary and reconciliation of Adjusted Earnings to earnings attributable to Class I and Class II Shares is provided below:

                                                       For the Quarter      
                                                        Ended March 31      
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($ Millions except per share data)                        2013       2012(4)
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Adjusted Earnings (1)                                      120          115 
Adjustments for Rate Regulated Activities (2)               (3)           4 
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Earnings Attributable to Class I and Class II                               
 Shares                                                    117          119 
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Revenues                                                 1,099        1,041 
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Funds Generated By Operations (3)                          458          443 
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(1) Adjusted Earnings are earnings attributable to Class I and Class II     
    Shares after adjusting for the timing of revenues and expenses          
    associated with rate regulated activities. Adjusted Earnings also       
    exclude one-time gains and losses and items that are not in the normal  
    course of business or day-to-day operations. Adjusted Earnings present  
    earnings on the same basis as was used prior to adopting International  
    Financial Reporting Standards (IFRS) - that basis being the U.S.        
    accounting principles for rate regulated entities - and they are a key  
    measure used to assess segment performance, to reflect the economics of 
    rate regulation and to facilitate comparability of ATCO's earnings with 
    other Canadian rate regulated companies.                                
(2) Refer to Note 5 to the consolidated financial statements for            
    descriptions of the adjustments for rate regulated activities and the   
    timing of their recovery from or refund to customers.                   
(3) This measure is cash flow from operations before changes in non-cash    
    working capital. It does not have standardized meaning under IFRS and   
    may not be comparable to similar measures used by other companies.      
(4) 2012 financial information has been restated as a result of adopting new
    and amended IFRS accounting standards that became effective in 2013.    

The $58 million increase in revenues was due primarily to increased rate base in the utilities, colder weather in the first quarter of 2013, and increased flow-through natural gas sales in ATCO Energy Solutions' natural gas liquids extraction operations.

ATCO's consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2013, will be available on the ATCO website (www.atco.com), via SEDAR (www.sedar.com) or can be requested from the Corporation.

ATCO Ltd., with more than 9,400 employees and assets of approximately $14 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in structures & logistics (manufacturing, logistics and noise abatement), utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions). More information can be found at www.atco.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Any forward-looking information contained in this news release represents the Corporation's expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.