OAKVILLE, ON, Nov. 14, 2013 /CNW/ - Algonquin Power & Utilities Corp.
(TSX: AQN), today announced financial results for the third quarter
ended September 30, 2013.
Third Quarter Financial Highlights:
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For the third quarter of 2013, revenue was $127.9 million compared to
$93.0 million in the third quarter of 2012. The increase in revenue
over the same period in 2012 is primarily the result of regulated
utility acquisitions including the Columbus/Gainsville Gas System,
Midwest Gas Systems, EnergyNorth Gas System, Pine Bluff Water System,
and Granite State Electric System, as well as the acquisitions of the
U.S. Wind Facilities. For the first nine months of 2013, APUC generated
revenue of $470.0 million compared to $209.9 million in the first nine
months of 2012.
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Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
("Adjusted EBITDA") was $40.5 million in the third quarter of 2013
compared to $20.8 million in the third quarter of 2012. The increase in
Adjusted EBITDA is primarily related to additional operating income
contributed by the aforementioned acquisitions, and increased demand
and higher rates at the electric distribution utility in California.
APUC generated adjusted EBITDA of $159.4 million for the first nine
months of 2013 compared to $63.6 million for the first nine months of
2012.
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APUC reported adjusted net earnings of $6.9 million or $0.03 per share
in the third quarter of 2013 compared to adjusted net earnings of $1.1
million or $0.01 per share in the third quarter of 2012. For the first
nine months of 2013, APUC reported adjusted net earnings of $41.7
million or $0.19 per share compared to $12.2 million or $0.08 per share
for the first nine months of 2012.
Third Quarter Growth Highlights:
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During 2013, APUC has completed several acquisitions and has announced a
number of initiatives that have raised the growth profile for APUC's
earnings and cash flows. The acquisition of several regulated utilities
in the U.S. serving over 290,000 customers together with the
acquisition of 509.5 MW of wind farms also in the U.S. over the course
of the year has resulted in increased earnings and cash flows in the
business.
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During the quarter, APUC's regulated utility subsidiary received
approval to implement interim rate tariffs at its New Hampshire based
electric distribution utility, which provide an annualized increase in
revenues of U.S. $6.5 million and accelerated annual storm cost
recovery of a $1 million. The interim rate increase is reflected in the
third quarter results with net revenue for the utility increasing 30%
compared to 2012.
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During the quarter, APUC continued construction of the Cornwall Solar
Project, which is a 10 MWac solar project located near Cornwall,
Ontario. The project has been granted an Ontario FIT contract by the
OPA, with a 20 year term and a rate of $443/MW-hr, resulting in
expected annual generation of 14.4 GW-hrs. Construction is expected to
be completed early in 2014 with total capital cost targeted at
approximately $45 million.
Third Quarter Corporate Highlights:
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Subsequent to the end of the quarter, Standard & Poor's Ratings Services
raised its long-term corporate credit rating on APUC and its
subsidiaries to 'BBB' from 'BBB-'. According to Standard & Poor's, the
upgrade reflects a significant increase in regulated cash flow owing to
a number of acquisitions in the past 18 months, as well as an
expectation that adjusted funds from operations-to-debt levels will
continue to increase in the near-to-medium term.
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On July 31, 2013, APUC's regulated utility subsidiary issued U.S. $125
million of debt through a private placement in the U.S. The financing
is the third series of notes issued pursuant to a master indenture.
The notes are senior unsecured with an average life maturity of
approximately ten years and a weighted average coupon of 3.81%. The
proceeds of the private placement financing were used to repay the U.S.
$100 million short term acquisition facility, reduce the drawn amount
on Liberty's revolving credit facility and for general corporate
purposes.
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On September 30, 2013, APUC's regulated utility subsidiary increased the
credit available under the senior unsecured revolving credit facility
to U.S. $200 million from U.S. $100 million, and the tenor has been
increased from three years to five years. The larger credit facility
provides additional liquidity as APUC executes on its near term organic
growth opportunities including targeted growth in assets for regulatory
purposes of approximately $100 million in each of the next three years
representing a growth rate of approximately 5% annually.
"APUC's third quarter results continue to reflect the successful
integration of our growth initiatives over the past year with
significant increases in revenue, earnings and cash flow", commented
Chief Executive Officer Ian Robertson. "We are pleased that, over the
course of 2013, we will have successfully deployed over half a billion
dollars of capital in accretive investments that will position APUC to
deliver strong growth in earnings and dividends over the coming years."
APUC's supplemental information is available on the web site at www.algonquinpowerandutilities.com.
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, November 15, 2013, hosted by Chief Executive Officer, Ian
Robertson and Chief Financial Officer, David Bronicheski.
Conference call details:
Date: Friday, November 15, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4859 or Local 416-644-3414.
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4644142# from November 15, 2013 until
November 29, 2013.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.2
billion portfolio of regulated and non-regulated utilities in North
America. The company's regulated utility business is committed to
provide water, electricity and natural gas utility services to over
470,000 customers through a nationwide portfolio of regulated
generation, transmission and distribution utility systems. The
company's non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers continuing growth through an expanding
pipeline of renewable power and clean energy projects, organic growth
within its regulated utilities and the pursuit of accretive acquisition
opportunities. Common shares and preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position or cash flows. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including assumptions
based on historical trends, current conditions and expected future
developments. Since forward-looking statements relate to future events
and conditions, by their very nature they require making assumptions
and involve inherent risks and uncertainties. APUC cautions that
although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the
possibility that actual results may differ materially from the
expectations set out in the forward-looking statements. Material risk
factors include those set out in the management's discussion and
analysis section of APUC's most recent annual report, quarterly report,
and APUC's Annual Information Form. Given these risks, undue reliance
should not be placed on these forward-looking statements, which apply
only as of their dates. Other than as specifically required by law,
APUC undertakes no obligation to update any forward-looking statements
or information to reflect new information, subsequent or otherwise.
SOURCE Algonquin Power & Utilities Corp.
