DEDHAM, Mass., Aug. 10, 2015 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today released its results for the three and six months
ended June 30, 2015.
Recent Developments
- Completed sale of wind assets in June for $350 million, with net cash proceeds of
approximately $335 million;
recognized $47.3 million after-tax
gain in the second quarter (included in discontinued
operations)
- Proceeds used to redeem $310.9
million outstanding principal amount of 9.0% Senior
Unsecured Notes due 2018 (the 9.0% Notes) in July
- Amortized $29 million of term
loan and project debt and repurchased $14
million of convertible debentures during the quarter; debt
amortization and repurchases total $83
million year to date
- Received constructive ruling from Ontario Superior Court of
Justice denying plaintiffs' motion for leave and certification in
proposed securities class action
- CEO and directors purchased approximately 380,000 common shares
of the Company during the second quarter at an average price of
$3.09; there were no sales by
officers or directors
Second Quarter 2015 Financial Highlights
- Project income of $17.2 million
increased $19.2 million from
$(2.0) million a year ago, mostly due
to $14.8 million of asset and
goodwill impairment expense in 2014 that did not recur in 2015
(results exclude the wind businesses, which are included in
discontinued operations)
- Project Adjusted EBITDA of $43.9
million declined $13.8 million
from $57.7 million a year ago,
primarily due to a scheduled outage at Manchief, PPA expirations at
Selkirk and Tunis, and low water flows at Curtis Palmer
and Mamquam (results exclude $14.8
million and $17.2 million,
respectively, from wind)
- Cash flows from operating activities totaled $18.3 million versus $34.0
million a year ago (including $11.1
million and $17.4 million,
respectively, from the wind businesses)
- Adjusted Cash Flows from Operating Activities, which excludes
discontinued operations, severance and other restructuring costs
and changes in working capital, increased to $8.1 million from $3.5
million, primarily due to lower cash interest payments and
lower general and administrative (G&A) expense
- Adjusted Free Cash Flow of $(27.3)
million was after $29.4
million of term loan and project debt repayment and
$3.7 million of investments in the
fleet and is improved from $(38.7)
million a year ago
2015 Guidance
- Reduced Project Adjusted EBITDA and Adjusted Cash Flows from
Operating Activities guidance by $5
million to reflect low water flows at Mamquam and Curtis
Palmer and reduced dispatch at Selkirk
- Project Adjusted EBITDA guidance revised to a range of
$200 to $215 million
- Adjusted Cash Flows from Operating Activities guidance revised
to a range of $90 to $105
million
- Reduced Adjusted Free Cash Flow guidance by $10 million (to a range of $0 to $10 million) due to lower Adjusted Cash
Flows from Operating Activities guidance and higher than expected
term loan amortization
- Expect 2015 corporate G&A expense of approximately
$35 million versus $38 million previously; on track for $28 million or lower in 2016 (48% reduction from
2013)
"Project Adjusted EBITDA from our continuing businesses in the
second quarter decreased primarily due to the scheduled major
outage at our Manchief project; low water flows, which adversely
affected the results of our Curtis Palmer and Mamquam projects, and
expirations of the PPAs at our Selkirk and Tunis projects," said James J. Moore, Jr., President and Chief
Executive Officer of Atlantic Power. "Cash flow is typically
low in the second quarter due to seasonality and the timing of
interest payments. Year to date, our Adjusted Cash Flows from
Operating Activities of $39 million
increased $9 million from the
year-ago period. This is the cash flow available to us to
amortize debt, reinvest in our fleet at attractive returns and pay
preferred and common dividends, if and when declared by the board
of directors. For the full year, we expect to generate
$90 to $105 million of Adjusted Cash
Flows from Operating
Activities."
"In the past two months, we completed the sale of our wind
assets for $350 million of equity
proceeds, which represented an attractive valuation. In view
of recent turmoil in the energy markets, we believe that we were
served well by acting decisively. We used the proceeds to
redeem our most expensive debt, which was the latest step in our
plan to strengthen our balance sheet, reduce our interest costs and
improve our debt maturity profile. Since year end 2013, we
have reduced our total debt on a net basis by approximately
$800 million, which has lowered our
cash interest payments by approximately $65
million annually, a reduction of approximately 50%,"
continued Mr. Moore. "Our consolidated debt to Adjusted
EBITDA ratio has improved to approximately 6 times currently from
approximately 7 times prior to the wind sale and redemption of our
9% Notes, and we expect further improvement through continued debt
amortization of approximately $70 to $75
million annually on average. In addition, we are
evaluating opportunities to reshape our remaining $305 million of corporate debt (U.S. dollar
equivalent), which consists of convertible debentures that mature
in 2017 and 2019."
Atlantic Power
Corporation
Table 1 – Selected
Results
(in millions of
U.S. dollars, except as otherwise stated)
Unaudited
|
|
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
Excluding results
from discontinued operations(1)
|
|
|
|
|
Project
revenue
|
$103.1
|
$123.1
|
$214.4
|
$248.4
|
Project (loss)
income
|
17.2
|
(2.0)
|
38.8
|
23.9
|
Project Adjusted
EBITDA
|
43.9
|
57.7
|
102.5
|
114.6
|
Cash Distributions
from Projects
|
37.7
|
67.8
|
94.7
|
111.5
|
Adjusted Cash Flows
from Operating Activities
|
8.1
|
3.5
|
39.2
|
30.6
|
Adjusted Free Cash
Flow
|
(27.3)
|
(38.7)
|
(23.7)
|
(18.8)
|
Aggregate power
generation (thousands of Net MWh)
|
1,507.9
|
1,502.0
|
2,992.8
|
3,152.1
|
Weighted average
availability
|
89.7%
|
90.4%
|
93.7%
|
91.5%
|
Including results
from discontinued operations (1)
|
|
|
|
|
Cash flows from
operating activities
|
$18.3
|
$34.0
|
$53.4
|
$5.5
|
Free Cash
Flow
|
(18.2)
|
(15.1)
|
(13.2)
|
(61.0)
|
Results of
discontinued operations
|
|
|
|
|
Project Adjusted
EBITDA
|
$14.8
|
$17.2
|
$28.1
|
$35.1
|
Cash Distributions
from Projects
|
2.0
|
17.7
|
9.3
|
24.9
|
Cash flows from
operating activities
|
11.1
|
17.4
|
21.9
|
26.2
|
(1)
Canadian Hills, Meadow Creek, Goshen North, Idaho Wind and Rockland
(the "Wind Projects") were sold in June 2015 and are designated as
discontinued operations for the three and six months ended June 30,
2015 and 2014. Greeley was sold in March 2014 and is included
as a component of discontinued operations for the six months ended
June 30, 2014. The results of discontinued operations are
excluded from Project revenue, Project income, Project Adjusted
EBITDA, Cash Distributions from Projects, Adjusted Cash Flows from
Operating Activities and Adjusted Free Cash Flow as presented in
Table 1. The results for discontinued operations have also
been excluded from the aggregate power generation and weighted
average availability statistics shown in Table 1. Under GAAP,
the cash flows attributable to the Wind Projects and Greeley are
included in cash flows from operating activities as shown on the
Company's Consolidated Statement of Cash Flows; therefore, the
Company's calculation of Free Cash Flow shown on Table 1 also
includes cash flows from the Wind Projects and Greeley.
However, the inclusion of Greeley in 2014 had no impact on cash
flows from operating activities or Free Cash Flow. Results of
discontinued operations shown above are for the Wind Projects, as
Greeley had no impact on Project Adjusted EBITDA, Cash
Distributions from Projects or cash flows from operating activities
for the 2014 period in which it was included in discontinued
operations.
Note: Project
Adjusted EBITDA, Cash Distributions from Projects, Adjusted Cash
Flows from Operating Activities, Adjusted Free Cash Flow and Free
Cash Flow are not recognized measures under GAAP and do not have
any standardized meaning prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies. Please refer to Tables 9 through 12 for
reconciliations of these non-GAAP measures to GAAP
measures.
|
|
|
|
|
|
|
|
All amounts are in U.S. dollars and are approximate unless
otherwise indicated. Adjusted Cash Flows from Operating Activities,
Free Cash Flow, Adjusted Free Cash Flow, Cash Distributions from
Projects, Project Adjusted EBITDA and APLP Project Adjusted EBITDA
are not recognized measures under generally accepted accounting
principles in the United States
("GAAP") and do not have standardized meanings prescribed by GAAP;
therefore, these measures may not be comparable to similar measures
presented by other companies. Please see "Regulation G Disclosures"
attached to this news release for an explanation and the GAAP
reconciliation of "Adjusted Cash Flows from Operating Activities",
"Free Cash Flow", "Adjusted Free Cash Flow", "Cash Distributions
from Projects" and "Project Adjusted EBITDA" as used in this news
release. The Company has not reconciled non-GAAP financial
measures relating to individual projects or the projects in
discontinued operations or the APLP projects to the directly
comparable GAAP measures due to the difficulty in making the
relevant adjustments on an individual project basis. The
Company has not provided a reconciliation of forward-looking
non-GAAP measures, due primarily to variability and difficulty in
making accurate forecasts and projections, as not all of the
information necessary for a quantitative reconciliation is
available to the Company without unreasonable efforts.
Sale of the Wind Projects
On June 26, the Company completed
the sale of its wind portfolio to TerraForm AP Acquisition
Holdings, LLC for aggregate cash proceeds of approximately
$335 million after transaction fees,
exclusive of transaction-related taxes. The wind portfolio
consisted of five operating wind projects in Idaho and Oklahoma (Canadian Hills, Meadow Creek, Rockland, Goshen
North and Idaho Wind) with a net ownership by Atlantic Power
of 521 megawatts. At closing, the Company also deconsolidated
approximately $249 million of project
debt and $224 million of
noncontrolling interests related to tax equity interests at
Canadian Hills and the minority ownership interests at Rockland and Canadian Hills. The Company
recorded a $47.3 million after-tax
gain on the sale in the second quarter of 2015, which was included
in income from discontinued operations. Proceeds from the
wind sale were used to redeem $310.9
million aggregate principal amount of the Company's 9.0%
Notes.
Operating Results
The discussion of operating results excludes the Wind
Projects, which are included in discontinued operations.
Three Months Ended June 30,
2015
Project availability decreased to 89.7% in the second
quarter of 2015 from 90.4% for the same period in 2014. The
slight reduction was attributable to decreased availability at
Manchief, which underwent a scheduled gas turbine maintenance
outage, and Kenilworth, which had
a planned maintenance outage, both during the second quarter of
2015. These decreases were partially offset by higher
availability at Cadillac and Orlando, which had scheduled maintenance
outages during the second quarter of 2014, and Moresby Lake and
Williams Lake, both of which had
forced maintenance outages during the second quarter of
2014.
Generation increased 0.4% primarily due to Frederickson,
which had increased dispatch as a result of warmer weather and
reduced hydro availability in the region as compared to the
year-ago period, and Orlando,
which had a maintenance outage in the second quarter of 2014.
These increases were mostly offset by reduced generation at
Manchief due to the outage; at Selkirk and Tunis due to the expiration of their Power
Purchase Agreements (PPAs); at Curtis Palmer and Mamquam, due to
lower water flows, and at Chambers, due to reduced dispatch.
Six Months Ended June 30,
2015
Project availability increased to 93.7% in the second
quarter of 2015 from 91.5% for the same period in 2014. The
improvement was attributable to increased availability at Chambers
and Cadillac, which had scheduled maintenance outages in the first
half of 2014, and at Moresby Lake and Williams Lake, which had forced maintenance
outages in the second quarter of 2014. These increases were
partially offset by reduced availability at Manchief due to a
scheduled maintenance outage in the second quarter of 2015.
Generation decreased 5.1% primarily due to PPA
expirations at Selkirk and
Tunis; lower dispatch at Chambers
due to unfavorable pricing, and lower water flows at Curtis
Palmer. These decreases were partially offset by increases at
Morris and Orlando, which had
maintenance outages in 2014; an increase at Frederickson due to
higher dispatch, and increases at Kapuskasing and Nipigon, due to favorable waste heat
generation.
Financial Results
In the second quarter of 2015, the Company revised its
reportable business segments as a result of recent significant
asset sales and in order to align with changes in management's
structure, resource allocation and performance assessment in making
decisions regarding the Company's operations. Results of the
Company's businesses are now reported in four segments: East U.S.,
West U.S., Canada and Un-allocated
Corporate.
Table 2 provides a breakdown of project income and Project
Adjusted EBITDA by segment for the three and six months ended
June 30, 2015 as compared to the same
periods in 2014. The Company's Wind Projects were sold in
June 2015 and are included in results
of discontinued operations for the three and six-month periods
ended June 30, 2015 and 2014.
Greeley was sold in March 2014 and is
included as a component of discontinued operations for the six
months ended June 30, 2014.
Results for project income and Project Adjusted EBITDA
exclude discontinued operations. Accordingly, results
of the Wind Projects and Greeley are not included in Project income
or Project Adjusted EBITDA for either the 2015 or 2014 periods
shown in Table 2.
Atlantic Power
Corporation
Table 2 – Segment
Results
(in millions of
U.S. dollars, except as otherwise stated)
Unaudited
|
|
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
Project income
(loss)
|
|
|
|
|
East U.S.
|
$16.7
|
$10.1
|
$28.0
|
$13.3
|
West U.S.
|
(4.3)
|
5.8
|
(4.0)
|
3.2
|
Canada
|
2.8
|
(12.9)
|
16.0
|
12.7
|
Un-allocated
Corporate
|
2.0
|
(5.0)
|
(1.2)
|
(5.3)
|
Total
|
17.2
|
(2.0)
|
38.8
|
23.9
|
Project Adjusted
EBITDA
|
|
|
|
|
East U.S.
|
$27.0
|
$30.8
|
$53.7
|
$55.2
|
West U.S.
|
5.7
|
15.9
|
15.6
|
23.7
|
Canada
|
11.6
|
14.6
|
35.4
|
39.3
|
Un-allocated
Corporate
|
(0.4)
|
(3.6)
|
(2.2)
|
(3.6)
|
Total
|
43.9
|
57.7
|
102.5
|
114.6
|
The results of the
Wind Projects and Greeley, which are components of discontinued
operations, are excluded from Project income and Project Adjusted
EBITDA as presented in Table 2.
Note: Project
Adjusted EBITDA is not a recognized measure under GAAP and does not
have any standardized meaning prescribed by GAAP; therefore, this
measure may not be comparable to similar measures presented by
other companies. Please refer to Tables 8 through 11 for a
reconciliation of this non-GAAP measure to a GAAP measure.
The Company has not reconciled this non-GAAP financial measure
relating to individual project segments to the directly comparable
GAAP measure due to the difficulty in making the relevant
adjustments on a segment basis.
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2015
Project income can fluctuate significantly due to
non-cash adjustments to "mark-to-market" the fair value of
derivatives. Non-cash goodwill impairment charges and gains
or losses on the sale of assets are included in project income and
can also affect year-over-year comparisons. None of these
items are included in Project Adjusted EBITDA.
Project income increased $19.2
million to $17.2 million in
the second quarter of 2015 from $(2.0)
million for the comparable period in 2014. The 2014
result included a $14.8 million
non-cash impairment of long-lived assets and goodwill at the
Tunis project. Results also
benefited from a $7.2 million
year-over-year change in the fair value of derivatives and a
$5.0 million increase in project
income at Orlando due to higher
generation and lower gas prices. These positive factors were
partially offset by lower project income at Curtis Palmer (lower
water flows) and Manchief (scheduled maintenance outage).
Project Adjusted EBITDA includes the proportional share
of Project Adjusted EBITDA from the Company's equity method
projects.
Project Adjusted EBITDA decreased by $13.8 million to $43.9
million for the second quarter of 2015 from $57.7 million for the second quarter of
2014. The most significant drivers of lower EBITDA were the
scheduled gas turbine maintenance outage at Manchief, the PPA
expiration and reduced dispatch due to unfavorable market
conditions at Selkirk, the
mothballed status of Tunis, and
lower water flows at Curtis Palmer and Mamquam. These were
partially offset by an increase at Orlando, which benefited from increased
generation and lower fuel expenses due to lower gas prices, and a
reduced loss in the Un-allocated Corporate segment, which benefited
from lower development and employee compensation expense.
Currency had an approximate $(1.5)
million impact on Project Adjusted EBITDA, with an average
U.S. dollar to Canadian dollar exchange rate for the second quarter
of 2015 of 1.25 versus 1.08 for the year-ago period. However,
from an overall cash standpoint, that impact was mostly offset by
the benefit of the stronger U.S. dollar on the Company's
Canadian-denominated interest and dividend payments.
Corporate-level G&A expense (shown as
"Administration" on the Consolidated Statements of Operations)
decreased $3.6 million to
$6.6 million in the second quarter of
2015 from $10.2 million in the second
quarter of 2014. The improvement was primarily attributable
to decreases in business strategy costs, legal expenses associated
with the U.S. and Canadian shareholder actions and employee
compensation as a result of headcount reductions.
Cash Flow Metrics
Cash flows from operating activities (GAAP) and Free Cash
Flow include the cash flows from projects classified as
discontinued operations. Free Cash Flow is a non-GAAP
measure. Table 10 of this press release provides a
reconciliation of Free Cash Flow to cash flows from operating
activities.
The second quarter is typically a low cash flow generation
quarter due to seasonality (electricity sales are higher in the
summer and winter months) and the timing of interest payments.
Cash flows from operating activities of $18.3 million for the second quarter of 2015
decreased $15.7 million from
$34.0 million for the second quarter
of 2014. The reduction was primarily due to a decrease in
Project Adjusted EBITDA of $13.8
million, partially offset by an increase in operating cash
flow associated with changes in other operating balances.
Results included $11.1 million from
discontinued operations in 2015 versus $17.4
million in 2014 (see "Results of Discontinued
Operations").
Free Cash Flow, which is after debt repayment, capital
expenditures and preferred dividends, decreased $3.1 million to $(18.2)
million for the second quarter of 2015 from $(15.1) million for the second quarter of
2014. The reduction is primarily due to the $15.7 million decrease in operating cash flows
and a $3.8 million increase in
capital expenditures, partially offset by a reduction in
amortization of the Atlantic Power Limited Partnership ("APLP")
term loan of $11.9 million and a
reduction in project debt amortization of $1.7 million. In the second quarter of
2014, there were effectively four months of APLP term loan
amortization ($37.5 million) versus
three in the second quarter of 2015.
Cash Distributions from Projects and the adjusted cash flow
metrics discussed below, all of which are non-GAAP measures,
exclude cash flows from projects classified as discontinued
operations. Adjusted Cash Flows from Operating Activities is
a measure of the cash flow available to the Company to make
principal repayments on its debt (primarily through amortization
and the cash sweep under the APLP term loan), invest in its fleet
through required or discretionary capital expenditures, and make
dividend payments to preferred and common shareholders, if and when
declared by the board of directors. Adjusted Free Cash Flow
is after debt repayment, capital expenditures and preferred
dividends, but is before common dividend payments. It is thus
a key measure in evaluating the amount of cash flow available to
the Company to make common dividend payments. Tables 10 and
11 of this press release provide a reconciliation of the Company's
non-GAAP cash flow metrics to cash flows from operating
activities.
Cash Distributions from Projects decreased $30.1 million to $37.7
million for the second quarter of 2015 compared to
$67.8 million for the same period in
2014. Significant decreases occurred at the following
projects: the Navy projects, which benefited from the timing
of gas payments in the 2014 period; Morris, due to a high level of
capital expenditures (optimization investments) in the second
quarter of 2015; Tunis, for which
the PPA expired in December and which is currently mothballed;
Chambers, due to a change in the timing of distributions under the
project's new debt agreement in June
2014; Manchief, due to a major planned outage in the second
quarter of 2015; Kapuskasing, due
to unplanned expenses and the impact of the stronger U.S. dollar;
Curtis Palmer, due to lower water flows, and Selkirk, which has been operating on a
merchant basis in unfavorable market conditions since its PPA
expired in August 2014. These decreases were partially offset
by a significant increase in distributions from Orlando, which benefited from lower gas costs
and increased capacity payments.
Adjusted Cash Flows from Operating Activities, which
excludes discontinued operations, changes in working capital,
severance, acquisition and disposition expenses and restructuring
charges, increased to $8.1 million
from $3.5 million for the same period
in 2014, primarily due to a reduction in cash interest payments
from $40.8 million to $34.6 million, and to lower corporate G&A
expense.
Adjusted Free Cash Flow, which excludes the same
variables listed above, increased $11.4
million to $(27.3) million
from $(38.7) million for the same
period in 2014. The increase was primarily attributable to
higher Adjusted Cash Flows from Operating Activities and a lower
level of APLP term loan amortization (the second quarter of 2014
included effectively four months of amortization), partially offset
by increased project debt amortization and increased capital
expenditures.
Six Months Ended June 30,
2015
Project income increased $14.9
million to $38.8 million in
the second quarter of 2015 from $23.9
million in the second quarter of 2014. The 2014 result
included a $14.8 million non-cash
impairment of long-lived assets and goodwill at the Tunis project. Results also benefited
from increases in project income at Orlando, Piedmont, Curtis Palmer (lower interest
expense, partially offset by lower water levels), Morris (lower
fuel expense resulting from lower gas prices), North Island
(maintenance outage in 2014) and Williams
Lake. These positive drivers were partially offset by
a year-over-year change in the fair value of derivatives of
$(16.4) million, lower project income
at Manchief (maintenance outage) and the unfavorable impact of
foreign exchange translation.
Project Adjusted EBITDA decreased $12.1 million to $102.5
million for the first six months of 2015 from $114.6 million for the comparable period in 2014.
The most significant drivers of lower Project Adjusted EBITDA
were lower results from Selkirk
due to the PPA expiration and reduced dispatch in an unfavorable
market environment, the scheduled gas turbine maintenance outage at
Manchief, the mothballed status of Tunis, and lower water flows at Curtis
Palmer. These factors were partially offset by an increase at
Orlando, which benefited from
increased generation and lower fuel expenses due to lower gas
prices, and at North Island, which had a maintenance outage in the
2014 period. Currency had an approximate $(4.5) million impact on Project Adjusted EBITDA,
with an average U.S. dollar to Canadian dollar exchange rate for
the first six months of 2015 of 1.26 versus 1.10 for the year-ago
period.
Corporate-level G&A expense decreased $1.5 million to $16.0
million in the first six months of 2015 from $17.5 million in the comparable year-ago
period. The improvement was primarily attributable to a
$3.2 million reduction in legal
expenses associated with the U.S. and Canadian shareholder actions,
lower incentive compensation expense and headcount reductions,
partially offset by $3.4 million of
severance costs.
Cash Flow Metrics
Cash flows from operating activities of $53.4 million for the first six months of 2015
increased $47.9 million from
$5.5 million for the comparable
period in 2014. The increase was primarily due to
$46.8 million of interest expense
related to the debt repayment and repurchase transactions in the
first quarter of 2014 (as described in more detail in the first
quarter 2014 press release dated May 12,
2014) and a $24.7 million
increase in operating cash flow associated with changes in other
operating balances, partially offset by a $12.1 million decrease in Project Adjusted EBITDA
and a $4.3 million decrease in
operating cash flow from discontinued operations ($21.9 million in 2015 versus $26.2 million in 2014; see "Results of
Discontinued Operations").
Free Cash Flow increased $47.8
million to $(13.2) million for
the first six months of 2015 from $(61.0)
million for the comparable period in 2014. The
increase is primarily due to the $47.9
million increase in operating cash flow described
previously. Repayment of the APLP term loan and amortization
of project debt totaled $53.2 million
in the first six months of 2015 versus $52.9
million in the comparable year-ago period, including an
$8.1 million repayment of
Piedmont principal at term loan
conversion in February 2014.
Cash Distributions from Projects decreased $16.8 million to $94.7
million for the first six months of 2015 compared to
$111.5 million for the comparable
period in 2014. Significant decreases in distributions
occurred at the following projects: Tunis, which is currently mothballed following
the expiration of its PPA in December
2014; Selkirk, which has
been operating on a merchant basis in unfavorable market conditions
since its PPA expired in August 2014;
the Navy projects, which benefited from the timing of gas payments
in the 2014 period; Nipigon, which
benefited in the first quarter of 2014 from the timing of revenue
receipts, and Manchief, due to a major planned outage in the second
quarter of 2015. These decreases were partially offset by
increased distributions from the following projects:
Chambers, due to a change in the timing of distributions under the
project's new debt agreement in June
2014; Morris, which benefited from lower market prices for
gas, partially offset by higher cash needs for capital expenditures
in the second quarter of 2015, and Orlando, which benefited from lower gas costs
and increased capacity payments.
Adjusted Cash Flows from Operating Activities increased
$8.6 million to $39.2 million for the first six months of 2015
from $30.6 million for the year-ago
period, primarily due to an $11.9
million reduction in cash interest payments. The 2014
result excludes $49.4 million of
interest expense associated with the debt refinancing and
repurchase transactions in the first quarter of 2014.
Adjusted Free Cash Flow decreased $4.9 million to $(23.7)
million from $(18.8)
million. The $8.6
million increase in Adjusted Cash Flows from Operating
Activities discussed above was more than offset by an $11.9 million increase in debt repayment,
including the APLP term loan and other project debt, and a
$2.8 million increase in capital
expenditures. The 2014 result excludes the $49.4 million of interest expense described above
as well as the $8.1 million of
Piedmont principal repayment at
term loan conversion in February 2014.
Results of Discontinued Operations
The Wind Projects were sold in June
2015 and are a component of discontinued operations for the
three and six months ended June 30,
2015 and 2014. Greeley was sold in March 2014 and is included as a component of
discontinued operations for the first six months of 2014. The
results for Greeley were immaterial during that period.
Project Adjusted EBITDA of the Wind Projects was
$14.8 million for the second quarter
of 2015 versus $17.2 million for the
comparable year-ago period. Project Adjusted EBITDA of the
Wind Projects was $28.1 million for
the first six months of 2015 versus $35.1
million for the comparable year-ago period. The
decreases were attributable to lower winds in 2015.
Cash flows from operating activities of the Wind Projects
were $11.1 million and $21.9 million for the second quarter and first
six months of 2015, respectively, versus $17.4 million and $26.2
million, respectively, for the comparable 2014
periods. The decreases were attributable to lower winds in
2015. The 2015 cash flow results also do not include any
interest payments on Meadow Creek
or Rockland, as interest and
principal repayment occurs semi-annually with the June 30th payment date occurring
subsequent to the closing of the transaction on June 26.
Liquidity
As can be seen from Table 3, the Company's liquidity increased
significantly from approximately $202
million as of March 31, 2015
to $492 million at June 30, 2015, including approximately
$335 million of net cash proceeds
received from the sale of the Company's Wind Projects.
Adjusting for the use of $330.4
million of cash in July 2015
to redeem the Company's $310.9
million principal amount of 9% Notes (including redemption
premiums and accrued interest to the redemption date), the
Company's total liquidity on a pro forma basis is approximately
$162 million.
Atlantic Power
Corporation
Table 3 –
Liquidity (in millions of U.S. dollars)
|
|
|
Unaudited
|
|
March 31,
2015
|
June 30,
2015
|
Pro Forma
(1)
|
Revolver
capacity
|
|
$210.0
|
$210.0
|
$210.0
|
Letters of credit
outstanding
|
|
(108.1)
|
(111.6)
|
(111.6)
|
Unused borrowing
capacity
|
|
101.9
|
98.4
|
98.4
|
Unrestricted cash
(2,3)
|
|
100.1
|
393.8
|
63.4
|
Total
Liquidity
|
|
$202.0
|
$492.2
|
$161.8
|
Note: Does not
include restricted cash of $14.1 million at March 31, 2015 and
$17.6 million at June 30, 2015.
(1) Pro
forma for the redemption of $310.9 million aggregate principal
amount of outstanding 9% Notes in July, including payment of
redemption premiums and accrued interest in connection
therewith.
(2) March
31, 2015 balance excludes cash at wind projects (included in
discontinued operations).
(3)
Includes project-level cash for working capital needs of $12.5
million at March 31, 2015 and $11.4 million at June 30,
2015.
|
|
|
|
|
|
|
Progress on Debt Reduction
Redemption of Senior Unsecured Notes
On July 27, the Company completed
the redemption of its outstanding $310.9
million principal amount of 9.0% Notes. The Company
used the cash proceeds from the recently completed sale of its Wind
Projects to fund the redemption. The 9.0% Notes were redeemed
at a price equal to 104.50% of the principal amount, plus accrued
interest to the redemption date, for a total amount of $330.4 million. The redemption premium and
accrued interest totaling $19.5
million and a non-cash write-off of deferred financing costs
of $9.0 million will be recorded in
interest expense in the third quarter of 2015. Annual
interest expense savings associated with the redemption are
approximately $28.0 million.
The sale of the Wind Projects and redemption of the 9.0% Notes is
expected to be modestly cash flow accretive on an annualized
basis.
Discretionary Debt Repurchases
In the second quarter of 2015, the Company repurchased
$13.9 million of convertible
debentures under the Normal Course Issuer Bid (NCIB). In the
first six months of 2015, the Company repurchased $20.9 million of convertible debentures under the
NCIB and $9.0 million of 9.0% Notes,
for total discretionary debt repurchases of $29.9 million year to date. The Company
also had repurchased $3.1 million of
convertible debentures under the NCIB in December 2014.
Amortization of APLP Term Loan and Project Debt
In the second quarter of 2015, the Company made repayments on
the APLP term loan totaling $25.6
million and amortized $3.8
million of project-level debt. On a year to date
basis, repayments totaled $46.9
million and $6.3 million,
respectively. For the full year, the Company expects to repay
$57 to $62 million of the APLP term
loan through the 50% cash sweep and 1% mandatory annual
amortization, implying repayments in the second half totaling
$10 to $15 million. For the
full year, amortization of project-level debt is expected to total
approximately $14 million, implying
amortization in the second half of approximately $8 million.
Cumulative Debt Reduction since Year End 2013
Pro forma for the redemption of the 9.0% Notes in July, the
Company's consolidated debt is now approximately $1.1 billion. This represents a net
reduction of approximately $726
million since year end 2013, including $249 million of project debt associated with the
Wind Projects that was transferred to the buyer of the assets at
closing. The Company has also reduced its share of debt at
equity-owned projects by approximately $76
million, most of which was associated with the two
equity-owned Wind Projects. Thus, total debt has been reduced
approximately $800 million over the
past six quarters. Cash interest savings associated with this
reduction in debt are approximately $65
million on an annualized basis.
The debt reduction has resulted in improved credit metrics for
the Company. The consolidated debt to Adjusted EBITDA
multiple is now approximately 6 times versus 7 times prior to the
sale of the Wind Projects and the use of proceeds therefrom for the
redemption of the 9.0% Notes. The Adjusted EBITDA to interest
coverage ratio has improved to approximately 2.7 times from
approximately 2.1 times previously. The ratio of cash flow
available for debt service to interest expense also has improved,
from 2.1 times to 2.5 times. The Company expects to realize
further improvement in these metrics through continued amortization
of project-level debt and the APLP term loan, which together are
expected to average approximately $70 to $75
million annually over the next two years.
The Company also has an improved corporate maturity profile,
with no debt maturities in 2018 and $305
million (U.S. dollar equivalent) of convertible debentures
remaining in 2017 and 2019. The Company continues to explore
opportunities to address these maturities.
Other Financial Updates
G&A Expense Targets
The Company now expects 2015 corporate G&A of approximately
$35 million versus previous guidance
of $38 million, and is on track to
achieve its corporate G&A cost target of $28 million or lower by 2016, representing a 48%
cumulative reduction from 2013. The 2015 G&A of
$35 million includes approximately
$4.0 million of severance expense and
$1.5 million of restructuring
charges.
Maintenance and Capex
For 2015, the Company projects that capital expenditures will
total approximately $11 million, of
which approximately $9 million
relates to discretionary optimization projects described in the
following section of this release. In addition to amounts
capitalized, the Company incurs maintenance expense to maintain its
projects. Total maintenance expense is expected to be
approximately $46 million for 2015,
representing an increase of approximately $5
million from 2014, which is primarily attributable to the
scheduled gas turbine outage at Manchief that occurred in the
second quarter of 2015 and the absence of insurance recoveries and
other proceeds that were credited at Piedmont in 2014, partially offset by
reductions at several other projects that had maintenance outages
in 2014.
During the second quarter of 2015, the Company incurred
$20.2 million of maintenance expense
(a significant portion of which was attributable to the Manchief
gas turbine outage) and $3.7 million
of capital expenditures. For the six months year to date,
maintenance expense totaled $25.7
million and capital expenditures totaled $5.0 million.
Optimization Investments
Consistent with its strategy, the Company continues to make
discretionary investments in its existing projects designed to
increase their output or improve their efficiency in order to
enhance the margins of these facilities. The Company
considers these investments to be an attractive use of its cash
considering the relatively modest capital requirements and
potential for strong risk-adjusted returns. As previously
disclosed, the Company invested approximately $7 million in 2013 and $11
million in 2014 in these discretionary initiatives. It
expects to realize a cash flow benefit of $4
to $8 million from these investments in 2015. The
Company expects to revisit this cash flow expectation later this
year after gaining operating experience this summer with the
completed upgrades at Morris and Nipigon.
In 2015, the Company expects to invest approximately
$10 million in such initiatives
across a number of projects, with the most significant at Morris,
Nipigon and Mamquam.
Approximately $9 million of these
investments are being capitalized and are included in the Company's
2015 capex budget of approximately $11
million. For the three-year period 2013 through 2015,
these discretionary optimization investments are expected to total
$28 million. The Company
expects to realize a cash flow benefit from these investments of at
least $10 million in 2016. The
Company is optimistic that it can identify and execute on another
$5 to $10 million of such
discretionary investments in 2016.
In addition to these production-based investments, the Company
continues to pursue commercial and asset management opportunities
around its existing projects, some of which require only a modest
level of capital expenditures or expense.
Share Purchases by Insiders
In the second quarter, CEO James J.
Moore, Jr. and three directors of the Company purchased a
total of approximately 380,000 common shares of the Company at an
average price of $3.09 per
share. This included initial purchases by Mr. Moore and two
directors who joined the board since December. There were no
sales by officers or directors during the quarter.
2015 Guidance Revised
- Total Company Project Adjusted EBITDA of $200 to $215 million (previously $200 to $220 million)
- APLP Project Adjusted EBITDA of $148 to
$160 million (unchanged)
- Adjusted Cash Flows from Operating Activities of $90 to $105 million (previously $90 to $110 million)
- Adjusted Free Cash Flow of $0 to $10
million (previously $0 to $20
million)
The Company has lowered the top end of its guidance for Project
Adjusted EBITDA by $5 million.
Year to date, Project Adjusted EBITDA is slightly below
expectations, primarily due to low water flows at Curtis Palmer and
Mamquam and reduced dispatch at Selkirk. Although water flows
have improved at Curtis Palmer, results for Mamquam and
Selkirk are expected to be below
expectations in the second half as well.
The Company has also lowered the top end of its guidance for
Adjusted Cash Flows from Operating Activities by $5 million to reflect the reduction in Project
Adjusted EBITDA guidance.
The Company has reduced its guidance for Adjusted Free Cash Flow
and now expects to be in the lower half of its initial guidance
range. This change reflects the reduction in Adjusted Cash
Flows from Operating Activities guidance as well as a higher than
expected level of APLP term loan amortization ($57 to $62 million, up from $50 to $60 million previously). The revised
guidance of $0 to $10 million is
before the payment of the common dividend, which at the current
rate of Cdn$0.03 quarterly represents
an annual cash requirement of approximately US$11 million.
See Table 4 for full-year revised 2015 guidance and actual
results for the first six months of 2015.
Atlantic Power
Corporation
Table 4 – 2015
Annual Guidance (Revised) vs. YTD 2015 Actual
Results
(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
|
2015
Annual
(Revised
5/7/15)
|
2015
Annual
(Revised
8/10/15)
|
YTD
2015
Actual
|
Project Adjusted
EBITDA
|
|
$200 -
$220
|
$200 -
$215
|
$102.5
|
Adjusted Cash Flows
from Operating Activities (1)
|
|
$90 - $110
|
$90 - $105
|
$39.2
|
Adjusted Free Cash
Flow (2)
|
|
$0 - $20
|
$0 - $10
|
$(23.7)
|
APLP Project Adjusted
EBITDA (3)
|
|
$148 -
$160
|
$148 -
$160
|
$74.3
|
(1)
Adjusted Cash Flows from Operating Activities is used to evaluate
cash flows from operating activities without the effects of changes
in working capital balances, acquisition and disposition expenses,
litigation expenses, severance and restructuring charges, and cash
provided by or used in discontinued operations. The intent is
to reflect normal operations and remove items that are not
reflective of the long-term operations of the business.
(2)
Adjusted Free Cash Flow is defined as Free Cash Flow excluding
changes in working capital balances, acquisition and disposition
expenses, litigation expense, severance and restructuring charges,
and cash provided by or used in discontinued operations. Free
Cash Flow is defined as cash flows from operating activities less
capex; project-level debt repayments, including amortization of the
new term loan; and distributions to noncontrolling interests,
including preferred share dividends.
(3) APLP
is a wholly owned subsidiary of the Company. APLP Project
Adjusted EBITDA is a summation of Project Adjusted EBITDA at each
APLP project, and is calculated in a manner which is consistent
with the Company's Project Adjusted EBITDA
calculation.
Note: Project
Adjusted EBITDA, Adjusted Cash Flows from Operating Activities,
Adjusted Free Cash Flow and APLP Project Adjusted EBITDA are not
recognized measures under GAAP and do not have any standardized
meaning prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other
companies.
|
|
|
|
|
|
|
|
Update on Shareholder Litigation
Ontario.
The Ontario Superior Court of Justice issued a decision on
July 24 denying the plaintiffs'
motion for leave and certification in the proposed securities class
action originally filed in March 2013
against Atlantic Power, a current officer, and a former officer and
director. The Superior Court concluded that there were no
misrepresentations or failures to disclose a material change by the
defendants, and that there is no reasonable possibility that the
plaintiffs would succeed at trial.
The Superior Court also determined that although the two
plaintiffs had sought to include convertible debenture holders in
the proposed class action, neither plaintiff was a debenture holder
and therefore could not act as a representative plaintiff for
them. The Superior Court granted leave to reconstitute a
claim for debenture holders provided that the claim be amended and
that there be a debenture holder as plaintiff. In addition,
the Superior Court ruled that if debenture holders were to proceed
with an action, they would be required to reimburse the defendants
on a partial indemnity basis for their costs of responding to the
motion if the defendants were successful. The plaintiffs have
advised of their intent to appeal the decision. The Company
will oppose this appeal.
Quebec. The
proposed class action in Quebec is
stayed until August 28,
2015.
United
States. In March of this year, the Company's
motion to dismiss the U.S. securities class action suit was granted
by the U.S. District Court for the District of Massachusetts.
In April, the plaintiffs filed a notice of appeal to the U.S. Court
of Appeals for the First Circuit. Briefs in the appeal are
scheduled to be filed in August and September.
Supplementary Financial Information
For further information, attached to this news release is a
summary of Project Adjusted EBITDA by segment for the three and six
months ended June 30, 2015 and 2014
(Table 8) with a reconciliation to project income (loss); a bridge
from Project Adjusted EBITDA to Cash Distributions from Projects by
segment for the six months ended June 30,
2015 (Table 9A) and the six months ended June 30, 2014 (Table 9B); a reconciliation of
Cash Distributions from Projects and Project Adjusted EBITDA to net
income (loss) and of various non-GAAP cash flow metrics to cash
flows from operating activities for the three and six months ended
June 30, 2015 and 2014 (Table 10);
reconciliations of Adjusted Cash Flows from Operating Activities
and Adjusted Free Cash Flow to cash flows from operating activities
for the three and six months ended June 30,
2015 and 2014 (Tables 11A and 11B); and a summary of Project
Adjusted EBITDA for selected projects (top contributors based on
the Company's 2015 budget, representing approximately 90% of total
Project Adjusted EBITDA) for the three and six months ended
June 30, 2015 and 2014 (Table
12).
Investor Conference Call and Webcast
A telephone conference call hosted by Atlantic Power's
management team will be held on Tuesday, August 11, 2015 at
8:30 AM ET. An accompanying
slide presentation will be available on the Company's website prior
to the call. The telephone numbers for the conference call
are: U.S. Toll Free:
1-888-317-6003; Canada Toll Free: 1-866-284-3684; International
Toll: +1-412-317-6061. Participants will need to provide
access code 0502042 to enter the conference call. The
conference call will also be broadcast over Atlantic Power's
website, with an accompanying slide presentation. Please call
or log in 10 minutes prior to the call. The telephone numbers
to listen to the conference call after it is completed (Instant
Replay) are U.S. Toll Free: 1-877-344-7529; Canada Toll Free
1-855-669-9658; International Toll: +1-412-317-0088. Please
enter conference call number 10068591. The replay will
be available 1 hour after the end of the conference call through
November 11, 2015 at 9:00 AM ET. The conference call will also
be archived on Atlantic Power's website.
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 2,137
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,502 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 trades 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
Amanda Wagemaker, Investor
Relations
(617) 977-2700
info@atlanticpower.com
Copies of certain financial data and other publicly filed
documents are filed 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:
- 2015 Project Adjusted EBITDA will be in the range of
$200 to $215 million;
- 2015 APLP Project Adjusted EBITDA will be in the range of
$148 to $160 million;
- 2015 Adjusted Cash Flows from Operating Activities will be in
the range of $90 to $105
million;
- 2015 Adjusted Free Cash Flow will be in the range of
$0 to $10 million;
- the Company's dividend level;
- the Company expects to have G&A costs of approximately
$35 million in 2015, and expects to
achieve its corporate G&A cost target of $28 million or lower in 2016;
- the Company expects to incur approximately $4 million of severance expense and $1.5 million of restructuring charges in
2015;
- for 2015, the Company projects that capital expenditures will
total approximately $11 million,
including approximately $9 million
relating to discretionary optimization investments, and total
maintenance expense is expected to be approximately $46 million;
- the Company's expectation and continued evaluation regarding
the investment of approximately $10
million in discretionary investments in its existing
projects across a number of projects and the expected cash flow
benefit of $4 to $8 million from
these investments in 2015;
- the Company expects to realize a cash flow benefit from
discretionary investments in its existing projects of at least
$10 million in 2016;
- the Company's expectations regarding the pursuit of commercial
and asset management opportunities around its existing projects and
the expected level of capital expenditures or expenses associated
therewith;
- the effect on the Company of the sale of the Wind
Projects;
- the Company's expectations regarding interest expense as a
result of redemption of the 9.0% Notes;
- the Company's redemption of the 9.0% Notes is expected to be
modestly cash flow accretive on an annualized basis;
- the Company expects further improvement in the consolidated
debt to Adjusted EBITDA multiple, the Adjusted EBITDA to interest
coverage ratio and the ratio of cash flow available for debt
service to interest expense through continued debt amortization of
approximately $70 to $75 million
annually on average;
- for the full year of 2015, the Company expects to repay
$57 to $62 million of the APLP term
loan through the 50% cash sweep and 1% mandatory annual
amortization, implying repayments in the second half totaling
$10 to $15 million, and expects
amortization of project-level debt to total approximately
$14 million;
- the Company's expectations regarding the exploration of
opportunities to reshape its remaining corporate debt;
- expectations regarding results for Mamquam and Selkirk in the second half of 2015;
- the nature of any further proceedings in the U.S. and Canadian
securities litigation; 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.
Atlantic Power
Corporation
Table 5 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
June
30,
|
December
31,
|
|
2015
|
2014
|
Assets
|
(Unaudited)
|
Current
assets:
|
Cash and cash
equivalents
|
$393.8
|
$106.0
|
Restricted
cash
|
17.6
|
22.5
|
Accounts
receivable
|
45.2
|
46.2
|
Inventory
|
16.5
|
19.3
|
Prepayments and other
current assets
|
12.3
|
13.9
|
Assets held for
sale
|
-
|
792.1
|
Refundable income
taxes
|
-
|
0.2
|
Total current
assets
|
485.4
|
1,000.2
|
|
Property, plant and
equipment, net
|
908.6
|
962.9
|
Equity investments in
unconsolidated affiliates
|
300.6
|
305.2
|
Other intangible
assets, net
|
342.7
|
377.1
|
Goodwill
|
197.2
|
197.2
|
Derivative
instruments asset
|
0.4
|
1.1
|
Deferred financing
costs
|
56.0
|
62.8
|
Other
assets
|
9.0
|
10.1
|
Total
assets
|
$2,299.9
|
$2,916.6
|
|
Liabilities
|
Current
liabilities:
|
Accounts
payable
|
$4.4
|
$9.4
|
Income taxes
payable
|
3.8
|
-
|
Accrued
interest
|
5.2
|
5.3
|
Other accrued
liabilities
|
36.7
|
30.7
|
Current portion of
long-term debt
|
328.4
|
20.0
|
Current portion of
derivative instruments liability
|
36.0
|
36.1
|
Liabilities held for
sale
|
-
|
271.8
|
Other current
liabilities
|
7.6
|
6.8
|
Total current
liabilities
|
422.1
|
380.1
|
|
Long-term
debt
|
762.4
|
1,145.9
|
Convertible
debentures
|
304.6
|
340.6
|
Derivative
instruments liability
|
37.1
|
47.5
|
Deferred income
taxes
|
111.1
|
92.4
|
Power purchase and
fuel supply agreement liabilities, net
|
30.3
|
33.4
|
Other non-current
liabilities
|
58.0
|
60.2
|
Commitments and
contingencies
|
-
|
-
|
Total
liabilities
|
1,725.6
|
2,100.1
|
|
Equity
|
Common shares, no par
value, unlimited authorized shares; 122,007,113 and
121,323,614
issued and
outstanding at June 30, 2015 and December 31, 2014,
respectively
|
1,289.5
|
1,288.4
|
Accumulated other
comprehensive loss
|
(98.9)
|
(68.3)
|
Retained
deficit
|
(837.6)
|
(863.9)
|
Total Atlantic Power
Corporation shareholders' equity
|
353.0
|
356.2
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Noncontrolling
interests held for sale
|
-
|
239.0
|
Total
equity
|
574.3
|
816.5
|
Total liabilities and
equity
|
$2,299.9
|
$2,916.6
|
Atlantic Power
Corporation
Table 6 –
Consolidated Statements of Operations
(in millions of
U.S. dollars, except per share amounts)
Unaudited
|
|
|
|
|
|
|
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
Project
revenue:
|
|
|
|
|
|
Energy
sales
|
$47.5
|
$62.4
|
|
$101.5
|
$124.7
|
|
Energy capacity
revenue
|
38.0
|
41.3
|
|
71.5
|
74.8
|
|
Other
|
17.6
|
19.4
|
|
41.4
|
48.9
|
|
|
103.1
|
123.1
|
|
214.4
|
248.4
|
|
|
|
|
|
|
|
|
Project
expenses:
|
|
|
|
|
|
|
Fuel
|
38.0
|
50.4
|
|
84.2
|
110.2
|
|
Operations and
maintenance
|
35.3
|
29.1
|
|
56.8
|
56.7
|
|
Development
|
-
|
1.1
|
|
1.1
|
1.8
|
|
Depreciation and
amortization
|
28.2
|
30.8
|
|
56.1
|
61.4
|
|
|
101.5
|
111.4
|
|
198.2
|
230.1
|
|
Project other income
(expense):
|
|
|
|
|
|
|
Change in fair value
of derivative instruments
|
6.8
|
(0.4)
|
|
5.2
|
21.6
|
|
Equity in earnings of
unconsolidated affiliates
|
8.6
|
3.7
|
|
19.3
|
12.1
|
|
Interest expense,
net
|
(2.0)
|
(2.2)
|
|
(4.1)
|
(13.3)
|
|
Other income
(expense), net
|
2.2
|
(14.8)
|
|
2.2
|
(14.8)
|
|
|
15.6
|
(13.7)
|
|
22.6
|
5.6
|
|
Project (loss)
income
|
17.2
|
(2.0)
|
|
38.8
|
23.9
|
|
|
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
|
|
Administration
|
6.6
|
10.2
|
|
16.0
|
17.5
|
|
Interest,
net
|
24.6
|
27.7
|
|
50.3
|
94.1
|
|
Foreign exchange loss
(gain)
|
4.8
|
15.3
|
|
(27.4)
|
(1.5)
|
|
Other income,
net
|
(1.7)
|
-
|
|
(3.1)
|
-
|
|
|
34.3
|
53.2
|
|
35.8
|
110.1
|
|
(Loss) income from
continuing operations before income taxes
|
(17.1)
|
(55.2)
|
|
3.0
|
(86.2)
|
|
Income tax expense
(benefit)
|
2.9
|
(4.5)
|
|
(1.7)
|
(21.4)
|
|
(Loss) income from
continuing operations
|
(20.0)
|
(50.7)
|
|
4.7
|
(64.8)
|
|
Net income (loss)
from discontinued operations, net of tax (1)
|
33.6
|
(5.7)
|
|
21.1
|
(14.0)
|
|
Net income
(loss)
|
13.6
|
(56.4)
|
|
25.8
|
(78.8)
|
|
Net loss attributable
to noncontrolling interests of discontinued operations
|
(3.4)
|
(0.3)
|
|
(11.0)
|
(6.7)
|
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
2.3
|
3.1
|
|
4.6
|
5.9
|
|
Net income (loss)
attributable to Atlantic Power Corporation
|
$14.7
|
$(59.2)
|
|
$32.2
|
$(78.0)
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share:
|
|
|
|
|
|
|
Loss from continuing
operations attributable to Atlantic Power Corporation
|
$(0.18)
|
$(0.45)
|
|
$0.00
|
$(0.59)
|
|
Income (loss) from
discontinued operations, net of tax
|
0.30
|
(0.04)
|
|
0.26
|
(0.06)
|
|
Net income (loss)
attributable to Atlantic Power Corporation
|
$0.12
|
$(0.49)
|
|
$0.26
|
$(0.65)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
121.9
|
120.6
|
|
121.7
|
120.5
|
|
Diluted
|
122.1
|
120.6
|
|
121.9
|
120.5
|
|
|
|
|
|
|
|
|
Dividends paid per
common share:
|
$0.02
|
$0.09
|
|
$0.05
|
$0.17
|
|
(1) Includes
contributions from the Wind Projects and Greeley, which are
components of discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 7 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
2015
|
2014
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
$25.8
|
$(78.8)
|
|
Adjustments to
reconcile to net cash provided by operating activities
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
66.4
|
81.5
|
|
Gain on sale of
discontinued operations
|
|
|
|
(47.3)
|
(2.1)
|
|
Gain on sale of
development project and other assets
|
|
|
|
(2.3)
|
-
|
|
Gain on purchase and
cancellation of convertible debentures
|
|
|
|
(3.0)
|
-
|
|
Stock-based
compensation expense
|
|
|
|
1.0
|
0.9
|
|
Impairment
charges
|
|
|
|
-
|
14.8
|
|
Equity in earnings
from unconsolidated affiliates
|
|
|
|
(19.3)
|
(11.9)
|
|
Distributions from
unconsolidated affiliates
|
|
|
|
27.0
|
37.8
|
|
Unrealized foreign
exchange gain
|
|
|
|
(27.6)
|
(1.4)
|
|
Change in fair value
of derivative instruments
|
|
|
|
(4.5)
|
(11.9)
|
|
Change in deferred
income taxes
|
|
|
|
20.4
|
(15.5)
|
|
Change in other
operating balances
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
0.6
|
2.8
|
|
Inventory
|
|
|
|
2.8
|
(2.6)
|
|
Prepayments,
refundable income taxes and other assets
|
|
|
|
9.3
|
14.7
|
|
Accounts
payable
|
|
|
|
(3.4)
|
(4.6)
|
|
Accruals and other
liabilities
|
|
|
|
7.5
|
(18.2)
|
|
Cash provided by
operating activities
|
|
|
|
53.4
|
5.5
|
|
|
|
|
|
|
|
|
Cash flows provided
by investing activities
|
|
|
|
|
|
|
Change in restricted
cash
|
|
|
|
4.9
|
78.4
|
|
Proceeds from sale of
discontinued operations and development project, net of cash
sold
|
|
|
|
326.3
|
1.0
|
|
Contribution to
unconsolidated affiliate
|
|
|
|
(0.6)
|
-
|
|
Capitalized
development costs
|
|
|
|
(0.8)
|
-
|
|
Construction in
progress
|
|
|
|
-
|
(1.5)
|
|
Purchase of property,
plant and equipment
|
|
|
|
(5.0)
|
(2.5)
|
|
Cash provided by
investing activities
|
|
|
|
324.8
|
75.4
|
|
|
|
|
|
|
|
|
Cash flows used in
financing activities
|
|
|
|
|
|
|
Proceeds from senior
secured term loan facility
|
|
|
|
-
|
600.0
|
|
Repayment of corporate
and project-level debt
|
|
|
|
(62.2)
|
(608.0)
|
|
Repayment of
convertible debentures
|
|
|
|
(18.0)
|
-
|
|
Deferred financing
costs
|
|
|
|
-
|
(38.8)
|
|
Dividends paid to
common shareholders
|
|
|
|
(5.8)
|
(20.9)
|
|
Dividends paid to
noncontrolling interests
|
|
|
|
(8.4)
|
(14.2)
|
|
Cash used in
financing activities
|
|
|
|
(94.4)
|
(81.9)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
|
283.8
|
(1.0)
|
|
Cash and cash
equivalents at beginning of period at discontinued
operations
|
|
|
|
3.9
|
-
|
|
Cash and cash
equivalents at beginning of period
|
|
|
|
106.1
|
158.6
|
|
Cash and cash
equivalents at end of period
|
|
|
|
$393.8
|
$157.6
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
Interest
paid
|
|
|
|
$46.3
|
$114.7
|
|
Income taxes paid,
net
|
|
|
|
$1.7
|
$1.0
|
|
Accruals for
construction in progress
|
|
|
|
$0.0
|
$8.2
|
|
|
|
|
|
|
|
|
|
|
|
Regulation G 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. 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)
is provided in Table 8 below. Investors are cautioned that
the Company may calculate this measure in a manner that is
different from other companies.
Cash Distributions from Projects, Adjusted Cash Flows from
Operating Activities, Free Cash Flow and Adjusted Free Cash
Flow are not measures recognized under GAAP and do not have
standardized meanings prescribed by GAAP, and are therefore
unlikely to be comparable to similar measures presented by other
companies. Adjusted Cash Flows from Operating Activities is
used to evaluate cash flows from operating activities without the
effects of changes in working capital balances, acquisition and
disposition expenses, litigation expenses, severance and
restructuring charges, and cash provided by or used in discontinued
operations. The intent is to reflect normal operations and
remove items that are not reflective of the long-term operations of
the business. Free Cash Flow is defined as cash flows from
operating activities less capex; project-level debt repayments,
including amortization of the new term loan; and distributions to
noncontrolling interests, including preferred share dividends.
Adjusted Free Cash Flow is defined as Free Cash Flow excluding
changes in working capital balances, acquisition and disposition
expenses, litigation expense, severance and restructuring charges,
and cash provided by or used in discontinued operations.
Management believes that these non-GAAP cash flow measures
are relevant supplemental measures of the Company's ability to earn
and distribute cash returns to investors. A bridge of Project
Adjusted EBITDA to Cash Distributions from Projects is provided in
Tables 9A and 9B on page 17. A reconciliation of Free Cash
Flow to cash flows from operating activities is provided in Table
10 on page 18 of this release. Reconciliations of Adjusted
Free Cash Flow and Adjusted Cash Flows from Operating Activities to
cash flows from operating activities are provided in Tables 11A and
11B on pages 19 and 20 of this release. Investors are
cautioned that the Company may calculate these measures in a manner
that is different from other companies.
Atlantic Power
Corporation
Table 8 – Project
Adjusted EBITDA by Segment (in millions of U.S.
dollars)
Unaudited
|
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
Project Adjusted
EBITDA by segment
|
|
|
|
|
East U.S.
|
$27.0
|
$30.8
|
$53.7
|
$55.2
|
West U.S.
(1)
|
5.7
|
15.9
|
15.6
|
23.7
|
Canada
|
11.6
|
14.6
|
35.4
|
39.3
|
Un-allocated
Corporate
|
(0.4)
|
(3.6)
|
(2.2)
|
(3.6)
|
Total
|
$43.9
|
$57.7
|
$102.5
|
$114.6
|
|
|
|
|
|
Reconciliation to
project income
|
|
|
|
|
Depreciation and
amortization
|
33.3
|
40.8
|
66.1
|
81.9
|
Interest expense,
net
|
2.5
|
3.8
|
4.9
|
15.4
|
Change in the fair
value of derivative instruments
|
(6.9)
|
0.3
|
(5.1)
|
(21.4)
|
Other (income)
expense
|
(2.2)
|
14.8
|
(2.2)
|
14.8
|
Project income
(loss)
|
$17.2
|
$(2.0)
|
$38.8
|
$23.9
|
(1)
Excludes Greeley, which is a component of discontinued
operations.
Notes:
Table 8 excludes the
Wind Projects, which comprise the entirety of the former Wind
segment. The Wind Projects are designated as discontinued
operations for the three and six months ended June 30, 2015 and
2014.
Table 8 presents
Project Adjusted EBITDA, which is not a recognized measure under
GAAP and does not have any standardized meaning prescribed by GAAP;
therefore, this measure may not be comparable to a similar measure
presented by other companies.
|
Atlantic Power
Corporation
Table 9A – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
Six months ended
June 30, 2015 (Unaudited)
|
Unaudited
|
Project Adjusted
EBITDA
|
Repayment of
long-term debt
|
Interest expense,
net
|
Capital
expenditures
|
Other, including
changes in working capital
|
Cash Distributions
from Projects
|
Segment
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$32.6
|
$(1.0)
|
$(3.7)
|
$(4.1)
|
$0.8
|
$24.6
|
Equity
method
|
21.1
|
(1.5)
|
(1.2)
|
(0.1)
|
(1.6)
|
16.7
|
Total
|
53.7
|
(2.5)
|
(4.9)
|
(4.2)
|
(0.8)
|
41.3
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
9.2
|
-
|
-
|
-
|
1.0
|
10.2
|
Equity
method
|
6.4
|
-
|
-
|
-
|
0.1
|
6.5
|
Total
|
15.6
|
-
|
-
|
-
|
1.1
|
16.7
|
Canada
|
|
|
|
|
|
|
Consolidated
|
35.4
|
(0.1)
|
-
|
(0.9)
|
2.3
|
36.7
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
35.4
|
(0.1)
|
-
|
(0.9)
|
2.3
|
36.7
|
Total
consolidated
|
77.2
|
(1.1)
|
(3.7)
|
(5.0)
|
4.1
|
71.5
|
Total equity
method
|
27.5
|
(1.5)
|
(1.2)
|
(0.1)
|
(1.5)
|
23.2
|
Un-allocated
corporate
|
(2.2)
|
-
|
-
|
(0.1)
|
2.3
|
-
|
Total
|
$102.5
|
$(2.6)
|
$(4.9)
|
$(5.2)
|
$4.9
|
$94.7
|
Note: Table 9A
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
|
|
Atlantic Power
Corporation
Table 9B – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
Six months ended
June 30, 2014 (Unaudited)
|
|
Project Adjusted
EBITDA
|
Repayment of
long-term debt
|
Interest expense,
net
|
Capital
expenditures
|
Other, including
changes in working capital
|
Cash Distributions
from Projects
|
Segment
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Consolidated
|
$31.5
|
$(9.4)
|
$(9.9)
|
$(0.3)
|
$11.9
|
$23.8
|
Equity
method
|
23.7
|
(3.3)
|
(5.5)
|
(0.6)
|
1.8
|
16.1
|
Total
|
55.2
|
(12.7)
|
(15.4)
|
(0.9)
|
13.7
|
39.9
|
West
U.S.
|
|
|
|
|
|
|
Consolidated
|
16.1
|
-
|
-
|
(0.4)
|
2.7
|
18.4
|
Equity
method
|
7.6
|
(1.0)
|
-
|
-
|
0.1
|
6.7
|
Total
|
23.7
|
-
|
-
|
(0.4)
|
1.5
|
25.1
|
Canada
|
|
|
|
|
|
|
Consolidated
|
39.3
|
-
|
-
|
(0.6)
|
7.8
|
46.5
|
Equity
method
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
39.3
|
-
|
-
|
(0.6)
|
7.8
|
46.5
|
Total
consolidated
|
86.9
|
(9.4)
|
(9.9)
|
(1.3)
|
22.4
|
88.7
|
Total equity
method
|
31.3
|
(4.3)
|
(5.5)
|
(0.6)
|
1.9
|
22.8
|
Un-allocated
corporate
|
(3.6)
|
-
|
-
|
(1.0)
|
4.6
|
-
|
Total
|
$114.6
|
$(13.7)
|
$(15.4)
|
$(2.9)
|
$28.9
|
$111.5
|
Note: Table 9B
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
Atlantic Power
Corporation
Table 10 – Free
Cash Flow (in millions of U.S. dollars)
Unaudited
|
|
|
|
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2015
|
2014
|
|
2015
|
2014
|
Cash Distributions
from Projects
|
$37.7
|
$67.8
|
|
$94.7
|
$111.5
|
Repayment of long-term
debt
|
(3.8)
|
(2.6)
|
|
(2.6)
|
(13.7)
|
Interest expense,
net
|
(2.5)
|
(3.8)
|
|
(4.9)
|
(15.4)
|
Capital
expenditures
|
(3.7)
|
0.4
|
|
(5.2)
|
(2.9)
|
Other, including
changes in working capital
|
3.3
|
16.1
|
|
4.9
|
28.9
|
Project Adjusted
EBITDA
|
$43.9
|
$57.7
|
|
$102.5
|
$114.6
|
Depreciation and
amortization
|
33.3
|
40.8
|
|
66.1
|
81.9
|
Interest expense,
net
|
2.5
|
3.8
|
|
4.9
|
15.4
|
Change in the fair
value of derivative instruments
|
(6.9)
|
0.3
|
|
(5.1)
|
(21.4)
|
Other (income)
expense
|
(2.2)
|
14.8
|
|
(2.2)
|
14.8
|
Project income
(loss)
|
$17.2
|
$(2.0)
|
|
$38.8
|
$23.9
|
Administrative and
other expenses (income)
|
34.3
|
53.2
|
|
35.8
|
110.1
|
Income tax expense
(benefit)
|
2.9
|
(4.5)
|
|
(1.7)
|
(21.4)
|
Net income (loss) from
discontinued operations, net of tax
|
33.6
|
(5.7)
|
|
21.1
|
(14.0)
|
Net income
(loss)
|
$13.6
|
$(56.4)
|
|
$25.8
|
$(78.8)
|
Adjustments to
reconcile to net cash provided by operating activities
|
4.0
|
95.6
|
|
10.8
|
92.2
|
Change in other
operating balances
|
0.7
|
(5.2)
|
|
16.8
|
(7.9)
|
Cash flows from
operating activities
|
$18.3
|
$34.0
|
|
$53.4
|
$5.5
|
Term loan facility
repayments (1)
|
(25.6)
|
(37.5)
|
|
(46.9)
|
(37.5)
|
Project-level debt
repayments
|
(3.8)
|
(5.5)
|
|
(6.3)
|
(15.4)
|
Purchases of property,
plant and equipment (2)
|
(3.7)
|
0.1
|
|
(5.0)
|
(2.5)
|
Distributions to
noncontrolling interests (3)
|
(1.1)
|
(3.1)
|
|
(3.8)
|
(5.2)
|
Dividends on preferred
shares of a subsidiary company
|
(2.3)
|
(3.1)
|
|
(4.6)
|
(5.9)
|
Free Cash
Flow
|
$(18.2)
|
$(15.1)
|
|
$(13.2)
|
$(61.0)
|
Additional GAAP cash
flow measures:
|
|
|
|
|
|
Cash flows from
investing activities
|
$317.3
|
$3.9
|
|
$324.8
|
$75.4
|
Cash flows from
financing activities
|
(48.0)
|
(60.3)
|
|
(94.4)
|
(81.9)
|
(1)
Includes mandatory 1% annual amortization and 50% excess cash flow
repayments by the Partnership.
(2)
Excludes construction costs related to the Company's Canadian Hills
project in 2014.
(3)
Distributions to noncontrolling interests include distributions to
the tax equity investors at Canadian Hills and to the other 50%
owner of Rockland.
Note: Table 10
presents Cash Distributions from Projects, Project Adjusted EBITDA
and Free Cash Flow, which are not recognized measures under GAAP
and do not have any standardized meanings prescribed by GAAP;
therefore, these measures may not be comparable to similar measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 11A –
Adjusted Cash Flows from Operating Activities and Adjusted Free
Cash Flow (in millions of U.S. dollars)
Three months ended
June 30, 2015 and 2014 (Unaudited)
|
|
|
Three months ended
June 30, 2015
|
Three months ended
June 30, 2014
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
Project Adjusted
EBITDA
|
$43.9
|
$14.8
|
$58.7
|
$57.7
|
$17.2
|
$74.9
|
Adjustment for equity
method projects (1)
|
6.0
|
(1.3)
|
4.7
|
(3.8)
|
(0.7)
|
(4.5)
|
Corporate G&A
expense
|
(6.6)
|
-
|
(6.6)
|
(10.4)
|
-
|
(10.4)
|
Cash interest
payments
|
(34.6)
|
-
|
(34.6)
|
(40.8)
|
(7.1)
|
(47.9)
|
Cash taxes
|
(1.3)
|
-
|
(1.3)
|
(0.8)
|
-
|
(0.8)
|
Other, including
changes in working capital
|
(0.2)
|
(2.4)
|
(2.6)
|
14.7
|
8.0
|
22.7
|
Cash flows from
operating activities
|
$7.2
|
$11.1
|
$18.3
|
$16.6
|
$17.4
|
$34.0
|
Changes in other
operating balances
|
0.2
|
2.4
|
2.6
|
(14.7)
|
(8.0)
|
(22.7)
|
Severance
charges
|
0.5
|
-
|
0.5
|
0.3
|
-
|
0.3
|
Restructuring and
other charges
|
0.2
|
-
|
0.2
|
1.3
|
-
|
1.3
|
Refinancing
transaction costs
|
-
|
-
|
-
|
-
|
-
|
-
|
Adjusted Cash
Flows from Operating Activities
|
$8.1
|
$13.5
|
$21.6
|
$3.5
|
$9.4
|
$12.9
|
Term loan facility
repayments (2)
|
(25.6)
|
-
|
(25.6)
|
(37.5)
|
-
|
(37.5)
|
Project-level debt
repayments
|
(3.8)
|
-
|
(3.8)
|
(2.0)
|
(3.5)
|
(5.5)
|
Purchases of property,
plant and equipment (3)
|
(3.7)
|
-
|
(3.7)
|
0.4
|
(0.3)
|
0.1
|
Distributions to
noncontrolling interests (4)
|
-
|
(1.1)
|
(1.1)
|
-
|
(3.1)
|
(3.1)
|
Dividends on preferred
shares of a subsidiary company
|
(2.3)
|
-
|
(2.3)
|
(3.1)
|
-
|
(3.1)
|
Adjusted Free Cash
Flow
|
$(27.3)
|
$12.4
|
$(14.9)
|
$(38.7)
|
$2.5
|
$(36.2)
|
Additional GAAP cash
flow measures:
|
|
|
|
|
|
|
Cash flows from
investing activities
|
$331.4
|
$(14.1)
|
$317.3
|
$(1.4)
|
$5.3
|
$3.9
|
Cash flows from
financing activities
|
(44.9)
|
(3.1)
|
(48.0)
|
(39.7)
|
(20.6)
|
$(60.3)
|
(1)
Represents difference between Project Adjusted EBITDA and cash
distributions from equity method projects.
(2)
Includes mandatory 1% annual amortization and 50% excess cash flow
repayments by the Partnership.
(3)
Excludes construction costs related to the Company's Canadian Hills
project in 2014.
(4)
Distributions to noncontrolling interests primarily include
distributions, if any, to the tax equity investors at Canadian
Hills and to the other 50% owner of Rockland.
Note: Table 11A
presents Project Adjusted EBITDA, Adjusted Cash Flows from
Operating Activities and Adjusted Free Cash Flow, which are not
recognized measures under GAAP and do not have any standardized
meanings prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 11B –
Adjusted Cash Flows from Operating Activities and Adjusted Free
Cash Flow (in millions of U.S. dollars)
Six months ended
June 30, 2015 and 2014 (Unaudited)
|
|
|
Six months ended
June 30, 2015
|
Six months ended
June 30, 2014
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
Project Adjusted
EBITDA
|
$102.5
|
$28.1
|
$130.6
|
$114.6
|
$35.1
|
$149.7
|
Adjustment for equity
method projects (1)
|
(3.9)
|
(2.7)
|
6.6
|
(9.8)
|
(2.7)
|
(12.5)
|
Corporate G&A
expense
|
(16.0)
|
-
|
(16.0)
|
(17.5)
|
-
|
(17.5)
|
Cash interest
payments
|
(46.3)
|
-
|
(46.3)
|
(107.6)
|
(7.1)
|
(114.7)
|
Cash taxes
|
(1.7)
|
-
|
(1.7)
|
(1.0)
|
-
|
(1.0)
|
Other, including
changes in working capital
|
(3.1)
|
(3.5)
|
(6.6)
|
0.6
|
0.9
|
1.5
|
Cash flows from
operating activities
|
$31.5
|
$21.9
|
$53.4
|
$(20.7)
|
$26.2
|
$5.5
|
Changes in other
operating balances
|
3.1
|
3.5
|
6.6
|
(0.6)
|
(0.9)
|
(1.5)
|
Severance
charges
|
3.4
|
-
|
3.4
|
0.8
|
-
|
0.8
|
Restructuring and
other charges
|
1.1
|
-
|
1.1
|
1.6
|
-
|
1.6
|
Refinancing
transaction costs
|
-
|
-
|
-
|
49.4
|
-
|
49.4
|
Adjusted Cash
Flows from Operating Activities
|
$39.2
|
$25.4
|
$64.6
|
$30.6
|
$25.3
|
$55.9
|
Term loan facility
repayments (2)
|
(46.9)
|
-
|
(46.9)
|
(37.5)
|
-
|
(37.5)
|
Project-level debt
repayments (3)
|
(6.3)
|
-
|
(6.3)
|
(3.8)
|
(3.5)
|
(7.3)
|
Purchases of property,
plant and equipment (4)
|
(5.0)
|
0.1
|
(4.9)
|
(2.2)
|
(0.3)
|
(2.5)
|
Distributions to
noncontrolling interests (5)
|
-
|
(3.8)
|
(3.8)
|
-
|
(5.2)
|
(5.2)
|
Dividends on preferred
shares of a subsidiary company
|
(4.6)
|
-
|
(4.6)
|
(5.9)
|
-
|
(5.9)
|
Adjusted Free Cash
Flow
|
$(23.7)
|
$21.7
|
$(2.0)
|
$(18.8)
|
$16.3
|
$(2.5)
|
Additional GAAP cash
flow measures:
|
|
|
|
|
|
|
Cash flows from
investing activities
|
$337.6
|
$(12.8)
|
$324.8
|
$68.9
|
$6.5
|
$75.4
|
Cash flows from
financing activities
|
(81.4)
|
(13.0)
|
(94.4)
|
(53.0)
|
(28.9)
|
(81.9)
|
(1)
Represents difference between Project Adjusted EBITDA and cash
distributions from equity method projects.
(2)
Includes mandatory 1% annual amortization and 50% excess cash flow
repayments by the Partnership.
(3) 2014
continuing operations and total columns exclude $8.1 million
repayment of Piedmont principal at term loan conversion in February
2014.
(4)
Excludes construction costs related to the Company's Canadian Hills
project in 2014.
(5)
Distributions to noncontrolling interests primarily include
distributions, if any, to the tax equity investors at Canadian
Hills and to the other 50% owner of Rockland.
Note: Table 11B
presents Project Adjusted EBITDA, Adjusted Cash Flows from
Operating Activities and Adjusted Free Cash Flow, which are not
recognized measures under GAAP and do not have any standardized
meanings prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 12 – Project
Adjusted EBITDA by Project (for Selected
Projects)
(in millions of
U.S. dollars)
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June
30,
|
Six months
ended
June
30,
|
|
|
|
2015
|
2014
|
2015
|
2014
|
East
U.S.
|
|
Accounting
|
|
|
|
|
Cadillac
|
|
Consolidated
|
$2.4
|
$1.2
|
$4.5
|
$3.2
|
Curtis
Palmer
|
|
Consolidated
|
9.7
|
12.0
|
15.5
|
18.7
|
Morris
|
|
Consolidated
|
3.9
|
2.8
|
8.8
|
6.5
|
Piedmont
|
|
Consolidated
|
1.4
|
2.2
|
2.2
|
0.8
|
Other
(1)
|
|
Consolidated
|
-
|
0.8
|
1.6
|
2.3
|
Chambers
|
|
Equity
method
|
3.5
|
4.0
|
9.7
|
9.8
|
Orlando
|
|
Equity
method
|
6.2
|
3.6
|
11.3
|
4.8
|
Other
(2)
|
|
Equity
method
|
(0.1)
|
4.2
|
0.1
|
9.1
|
Total
|
|
|
27.0
|
30.8
|
53.7
|
55.2
|
West
U.S.
|
|
|
|
|
|
|
Manchief
|
|
Consolidated
|
(5.0)
|
3.5
|
(1.4)
|
7.2
|
Naval
Station
|
|
Consolidated
|
3.2
|
3.4
|
4.6
|
4.8
|
North
Island
|
|
Consolidated
|
2.5
|
2.8
|
3.7
|
1.3
|
Other
(3)
|
|
Consolidated
|
2.0
|
2.6
|
2.3
|
2.8
|
Frederickson
|
|
Equity
method
|
2.9
|
2.6
|
6.0
|
5.9
|
Other
(4)
|
|
Equity
method
|
0.1
|
1.0
|
0.4
|
1.7
|
Total
|
|
|
5.7
|
15.9
|
15.6
|
23.7
|
Canada
|
|
|
|
|
|
|
Calstock
|
|
Consolidated
|
2.0
|
1.2
|
4.7
|
3.3
|
Kapuskasing
|
|
Consolidated
|
0.4
|
1.6
|
4.4
|
4.9
|
Nipigon
|
|
Consolidated
|
4.0
|
2.8
|
9.8
|
8.7
|
North Bay
|
|
Consolidated
|
0.7
|
1.2
|
4.8
|
6.1
|
Williams
Lake
|
|
Consolidated
|
2.6
|
2.8
|
7.6
|
6.8
|
Other
(5)
|
|
Consolidated
|
1.9
|
5.0
|
4.1
|
9.5
|
Total
|
|
|
11.6
|
14.6
|
35.4
|
39.3
|
Totals
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
31.7
|
45.9
|
77.2
|
86.9
|
Equity method
projects
|
|
|
12.6
|
15.4
|
27.5
|
31.3
|
Un-allocated
corporate
|
|
|
(0.4)
|
(3.6)
|
(2.2)
|
(3.6)
|
Total Project
Adjusted EBITDA
|
|
|
$43.9
|
$57.7
|
$102.5
|
$114.6
|
|
|
|
|
|
|
|
Reconciliation to
project income (loss)
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$33.3
|
$40.8
|
$66.1
|
$81.9
|
Interest expense,
net
|
|
|
2.5
|
3.8
|
4.9
|
15.4
|
Change in the fair
value of derivative instruments
|
|
|
(6.9)
|
0.3
|
(5.1)
|
(21.4)
|
Other (income)
expense
|
|
|
(2.2)
|
14.8
|
(2.2)
|
14.8
|
Project income
(loss)
|
|
|
$17.2
|
$(2.0)
|
$38.8
|
$23.9
|
(1)
Kenilworth
(2)
Selkirk
(3) Naval Training
Station and Oxnard
(4) Q2 2014: Koma
Kulshan; YTD June 2014: Koma Kulshan and Delta-Person; Q2 and
YTD June 2015: Koma Kulshan
(5) Tunis, Moresby
Lake and Mamquam,
Notes: Table 12
presents Project Adjusted EBITDA, which is not a recognized measure
under GAAP and does not have any standardized meaning prescribed by
GAAP; therefore, this measure may not be comparable to a similar
measure presented by other companies. The Company has not
reconciled non-GAAP financial measures relating to individual
projects to the directly comparable GAAP measures due to the
difficulty in making the relevant adjustments on an individual
project basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-second-quarter-2015-results-300126411.html
SOURCE Atlantic Power Corporation