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SOURCE Algonquin Power & Utilities Corp.
OAKVILLE, ON, March 14, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN), today announced financial results for the fourth
quarter and year ended December 31, 2012.
For the fourth quarter of 2012, revenue from continuing operations was
$143.1 million as compared to $70.5 million in the fourth quarter of
2011. The increase in revenue over the same period in 2011 is primarily
related to results from the acquisitions of the New Hampshire gas and
electric utility assets, Midwest gas utility assets, and the
acquisition of an interest in the U.S. wind projects, all of which
occurred in the second half of 2012. For the year 2012, APUC generated
revenue from continuing operations of $369.9 million as compared to
$270.7 million in 2011.
Adjusted earnings before interest, taxes, depreciation and amortization
("EBITDA") was $33.4 million in the fourth quarter of 2012 as compared
to $24.3 million in the fourth quarter of 2011. The increase in
adjusted EBITDA over the comparable period is primarily related to
increased revenues as a result of the acquisition of the New Hampshire
gas and electric utility assets, Midwest gas utility assets, and the
U.S. wind projects, and increased demand at the electric distribution
utility in California (the "California Utility"). APUC generated
adjusted EBITDA of $106.2 million in 2012 as compared to $103.7 million
APUC reported adjusted net earnings of $5.4 million or $0.03 per share
in the fourth quarter of 2012 as compared to adjusted net earnings of
$3.6 million or $0.03 per share in the fourth quarter of 2011. For the
year 2012, APUC reported adjusted net earnings of $20.8 million or
$0.14 per share as compared to $38.3 million or $0.33 per share in
On December 10, 2012, the acquisition of a 60% interest in the Minonk
(200 MW) and Senate (150 MW) wind projects in the United States was completed by an APUC subsidiary. This is in
addition to the completion of the acquisition of a 60% interest in the
50 MW Sandy Ridge wind project earlier in the year. Total consideration
paid for the acquisition of the interest in the three wind projects was
approximately U.S. $271.7 million.
On December 21, 2012, APUC completed the acquisition of the remaining
49.999% ownership in California Pacific Utility Ventures LLC, which
owns 100% of the California Utility assets. APUC acquired the
remaining 49.999% interest from Emera Inc. ("Emera") through the
issuance of 8.2 million APUC common shares, 4.8 million of which were
issued on December 27, 2012, and the remaining 3.4 million shares
issued on February 14, 2013.
Subsequent to the end of the year, on January 1, 2013, an APUC
subsidiary acquired the 109.5 MW contracted Shady Oaks wind powered
generating station for total consideration of approximately US$148.9
million. The Shady Oaks wind power facility is located in Northern
Illinois, approximately 80 km west of Chicago, Illinois and reached
commercial operation in June 2012.
Additionally, on February 11, 2013, an APUC subsidiary entered into an
agreement to assume the rights to purchase the assets of New England
Gas Company from an affiliate of Southern Union Company. New England
Gas Company is a natural gas distribution utility serving over 50,000
customers in Massachusetts. The acquisition is subject to certain
approvals and conditions, including state and federal regulatory
approval, and is expected to close in the second half of 2013. Total
consideration for the utility asset purchase is approximately U.S. $74
million, subject to working capital and closing adjustments.
In 2012, pursuant to the Strategic Investment Agreement with Emera, APUC
issued a total of 26.4 million shares for cash and share proceeds of
$142.6 million as a result of the exercise of subscription receipts
issued for certain previously announced transactions. Subsequent to the
end of the year, APUC issued an additional 11.2 million shares to Emera
pursuant to subscription agreements. As a result, Emera owns 46.1
million APUC common shares representing approximately 23% of the total
outstanding common shares of the Company. On February 22, 2013, APUC
announced that Emera agreed to subscribe to 3.96 million common shares
of APUC at a price of $7.40 per share for total proceeds of
approximately $29 million. The conversion of these subscription
receipts will bring Emera's total investment in APUC to 24.5%.
On November 9, 2012, APUC issued 4.8 million cumulative rate reset
preferred shares, Series A at a price of $25 per share for aggregate
gross proceeds of $120 million. The shares yield 4.5% annually for the
initial six year period.
On November 19, 2012, APUC entered into an agreement for a $30.0 million
senior unsecured revolving credit facility with a Canadian chartered
bank. The credit facility will be used for general corporate purposes
and has a maturity date of November 19, 2015.
"We concluded 2012 having exceeded our expectations from a strategic
growth perspective in both our regulated and non-regulated utilities
businesses", commented Ian Robertson, Chief Executive Officer of APUC.
"We have successfully integrated the newly acquired regulated and
non-regulated utility assets in the United States and we further
advanced our power development portfolio throughout the past year. Our
priority for 2013 is to continue to build on the growth momentum we
have experienced over the past few years. We are focused on new
developments and acquisitions in our business, growing cash flow and
further strengthening our stable base of earnings."
APUC's supplemental information is available on the web site at www.algonquinpowerandutilities.com by using the Quarterly Reports link in the Top Links section of the
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Friday, March 15, 2013, hosted by Chief Executive Officer, Ian
Robertson and Chief Financial Officer, David Bronicheski.
Conference call details are as follows:
Date: Friday, March 15, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-877-974-0445 or Local 416-644-3415.
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 4600256# from March 15, 2013 until March
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.0
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
465,000 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.
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