DEDHAM, Mass., Aug. 8, 2016 /CNW/ -- 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, 2016.
Second Quarter 2016 Financial Results
- Reported net loss of $(18.5)
million versus net income of $14.7
million in Q2 2015; higher Project income was more than
offset by a $31.5 million non-cash
write-off of deferred financing costs; 2015 results included income
from discontinued operations (Wind business), including a gain on
sale
- Reported Project income of $25.2
million versus $17.2 million
in Q2 2015; increase due to Manchief maintenance outage in Q2 2015
and other factors (2015 results exclude the Wind business)
- Achieved Project Adjusted EBITDA of $46.2 million versus $43.9
million in Q2 2015; increase primarily due to Manchief
outage in Q2 2015 and higher water flows at Mamquam in 2016,
partially offset by lower water flows at Curtis Palmer, higher
maintenance expense at other projects and a less favorable exchange
rate (2015 results exclude Wind business)
- Reported Cash provided by operating activities of $24.3 million versus $18.3
million in Q2 2015; increase primarily due to lower interest
payments and higher Project Adjusted EBITDA, which more than offset
the absence of cash flows from the Wind business ($11.1 million in Q2 2015)
Year to Date June 2016
Financial Results
- Reported net loss of $(33.5)
million versus net income of $32.2
million in Q2 2015; higher Project income was more than
offset by the deferred financing cost write-off and a largely
unrealized foreign exchange loss; 2015 results included an
unrealized foreign exchange gain and income from discontinued
operations
- Reported Project income of $53.9
million versus $38.8 million
in 2015; increase due to lower fuel and operations and maintenance
expenses (2015 outages), lower depreciation expense (following an
impairment of long-lived assets in 2015) and lower interest expense
(due to debt repayment)
- Project Adjusted EBITDA of $108.7
million increased from $102.5
million in 2015, primarily due to an outage at Manchief in
Q2 2015, higher water flows at hydro projects and reductions in
project-level compensation and development expenses, partially
offset by higher maintenance expense at certain other projects and
a less favorable exchange rate
- Reported Cash provided by operating activities of $53.7 million versus $53.4
million in 2015; lower interest payments and higher Project
Adjusted EBITDA in 2016 essentially offset the absence of cash
flows from the Wind business ($21.9
million in 2015)
Progress on Balance Sheet Initiatives
- In April, completed the refinancing of existing term loan and
revolver, gaining additional flexibility and extending maturity
dates for both
- In May, redeemed all 2017 convertible debentures at par plus
accrued interest using $111 million
of proceeds from the refinancing
- In July, repurchased $62.7
million of Series C June 2019
convertible debentures under substantial issuer bid; approximately
$42.6 million remain outstanding
- In Q2 2016, repurchased 1.5 million common shares for
approximately $3.6 million (average
$2.38/share)
- Approximately $40 million of
remaining net proceeds from the refinancing available for
additional debt and equity repurchases and growth investments, at
Company's discretion
- In Q2 2016, repaid $25.1 million
of APLP Holdings term loan and $2.1
million of project debt from operating cash flow; expect
repayments in second half 2016 of $35
million and $6.7 million,
respectively
"We had solid operating and financial results in the second
quarter and are on track to achieve our guidance for the full year.
During the quarter, we made progress on our goal of building
intrinsic value per share. We continued to execute well on
our balance sheet initiatives this quarter, with the completion of
our term loan refinancing and arrangement of a new, more flexible
revolver, the redemption of our 2017 convertible debentures and the
repurchase of a significant portion of our 2019 convertible
debentures," said James J. Moore,
Jr., President and CEO of Atlantic Power. "We also repaid
$27 million of project and term loan
debt in the quarter using our operating cash flow, and expect to
repay another $42 million in the
second half of the year. Our leverage ratio is once again
below 6 times, although that is still well above where we believe
it needs to be. During the quarter we repurchased
approximately 1.5 million common shares, bringing the total
purchased under the normal course issuer bid commenced last
December to approximately 2.2 million shares. In addition, we
have approximately $40 million of
cash available for further debt and equity repurchases and internal
or external growth investments."
"The steps we have taken in the past two years with respect to
our balance sheet and cost structure give us the ability to
withstand challenging power market conditions," continued Mr.
Moore. "Following the refinancing, we will continue to pay
down our term loan debt from our operating cash flow and we are now
able to use our liquidity to address the remaining 2019 convertible
debentures, buy common shares when they are trading at a discount
to intrinsic value, make attractive investments in our fleet and
pursue modest growth initiatives, without returning to the capital
markets. We thank our shareholders for their support and our
employees who executed well on a difficult but necessary
restructuring of our Company."
Atlantic Power
Corporation
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Table 1 – Selected
Results
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(in millions of
U.S. dollars, except as otherwise stated)
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Unaudited
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Three months ended
June 30,
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Six months ended
June 30,
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2016
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2015
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2016
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2015
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Financial
Results(1)
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Project
revenue
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$98.2
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$103.1
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$204.6
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$214.4
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Project
income
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25.2
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17.2
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53.9
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38.8
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Net (loss) income
attributable to Atlantic Power Corporation
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(18.5)
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14.7
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(33.5)
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32.2
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Cash provided by
operating activities
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24.3
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18.3
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53.7
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53.4
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Project Adjusted
EBITDA
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46.2
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43.9
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108.7
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102.5
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Cash Distributions
from Projects
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42.7
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37.6
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96.0
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94.7
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Operating Results
(1)
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Aggregate power
generation (thousands of Net MWh)
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1,477.9
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1,520.5
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3,031.2
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3,040.5
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Weighted average
availability
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92.7%
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91.0%
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94.6%
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94.2%
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Results of
discontinued operations
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Project
revenue
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$-
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$18.1
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$-
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$34.8
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Project
income
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-
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64.2
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-
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53.4
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Net income
(loss)
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-
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33.6
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-
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21.1
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Cash provided by
operating activities
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-
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11.1
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-
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21.9
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Cash Distributions
from Projects
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-
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2.0
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-
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9.3
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(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 six months ended June 30,
2015. The results of discontinued operations are excluded
from Project revenue, Project income, Net income (loss), Project
Adjusted EBITDA and Cash Distributions from Projects 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 are included in
Cash provided by operating activities as shown on the Company's
Consolidated Statement of Cash Flows.
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All amounts are in U.S. dollars and are approximate unless
otherwise indicated. Project Adjusted EBITDA is not a
recognized measure under generally accepted accounting principles
in the United States ("GAAP") and
does not have a standardized meaning prescribed by GAAP; therefore,
this measure may not be comparable to similar measures presented by
other companies. Please refer to "Non-GAAP Disclosures"
beginning on page 16 of this news release for an explanation and a
reconciliation of "Project Adjusted EBITDA" as used in this news
release to project income (loss), the most directly comparable
measure on a GAAP basis, and net income (loss). Cash
Distributions from Projects is the amount of cash distributed by
the projects to the Company out of available project cash flow
after all project-level operating costs, interest payments,
principal repayment, capital expenditures and working capital
requirements. It is not a non-GAAP measure. Project
Adjusted EBITDA, a non-GAAP measure, is the most comparable
measure, but it is before debt service, capital expenditures and
working capital requirements. The Company has included a
bridge of Project Adjusted EBITDA to Cash Distributions from
Projects in the "Non-GAAP Disclosures" section of this
release.
Operating Results
The discussion of operating results excludes the Wind Projects,
which were sold in June 2015 and are
included in discontinued operations for the three and six months
ended June 30, 2015.
Three Months ended June 30,
2016
Project availability was 92.7% in the second quarter of
2016, a modest increase from 91.0% in the year-ago period.
Manchief and NTC had higher availability in 2016 due to outages in
2015 that did not recur (a gas turbine overhaul at Manchief and an
outage at NTC at the utility customer's request). This was
partially offset by lower availability at Frederickson, which had
an extended spring outage and forced outages in 2016.
Generation decreased 2.8% in the second quarter of 2016
from the year-ago period, primarily due to Frederickson, which had
lower availability, and Curtis Palmer, which had lower water
flows. These decreases were partially offset by higher
generation at Mamquam due to higher water flows.
Six Months ended June 30,
2016
Project availability was 94.6% in the first six months of
2016, a slight increase from 94.2% in the year-ago period.
Manchief had higher availability due to a gas turbine overhaul in
the prior year. This was partially offset by lower
availability at Frederickson, which had an extended spring outage
and forced outages in 2016.
Generation decreased slightly by 0.3% in the first six
months of 2016 from the year-ago period, primarily due to lower
dispatch at Manchief and Selkirk,
which was partially offset by higher generation at Mamquam due to
higher water flows.
Financial Results
Project income and Project Adjusted EBITDA
Table 2 provides a breakdown of Project income and Project
Adjusted EBITDA by segment for the three and six months ended
June 30, 2016 as compared to the same
periods in 2015. Results for project income and Project
Adjusted EBITDA exclude discontinued operations; accordingly,
results of the Wind Projects are not included in either metric for
the 2015 period shown in Table 2.
Project income (loss) is a GAAP measure that can
fluctuate significantly due to non-cash adjustments to
"mark-to-market" the fair value of derivatives. Non-cash
impairment charges and gains or losses on the sale of assets are
included in project income and can also affect year-over-year
comparisons.
Project Adjusted EBITDA is a non-GAAP measure.
Management believes that Project Adjusted EBITDA, which includes
the proportional share of Project Adjusted EBITDA from the
Company's equity method projects, is a more useful measure of
financial results at its projects because it excludes non-cash
impairment charges, gains or losses on the sale of assets and
non-cash mark-to-market adjustments, all of which can affect
year-to-year comparisons. Project Adjusted EBITDA is before
corporate overhead expense. The most directly comparable GAAP
measure to Project Adjusted EBITDA is Project income; Tables 9A
through 9D of this release provide a reconciliation of Net income
to Project income and to Project Adjusted EBITDA by segment and on
a consolidated basis for the three- and six-month periods ended
June 30, 2016 and June 30, 2015.
Atlantic Power
Corporation
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Table 2 – Segment
Results
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(in millions of
U.S. dollars, except as otherwise stated)
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Unaudited
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Three months ended
June 30,
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Six months ended
June 30,
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2016
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2015
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2016
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2015
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Project income
(loss)
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East U.S.
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$9.6
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$16.7
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$25.6
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$28.0
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West U.S.
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4.6
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(4.3)
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2.3
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(4.0)
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Canada
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12.9
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2.8
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29.3
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16.0
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Un-allocated
Corporate
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(1.9)
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2.0
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(3.3)
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(1.2)
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Total
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25.2
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17.2
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53.9
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38.8
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Project Adjusted
EBITDA
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East U.S.
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$20.9
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$27.0
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$51.2
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$53.7
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West U.S.
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14.5
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5.7
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22.0
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15.6
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Canada
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10.9
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11.6
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35.7
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35.4
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Un-allocated
Corporate
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(0.1)
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(0.4)
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(0.2)
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(2.2)
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Total
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46.2
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43.9
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108.7
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102.5
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Note: The
results of the Wind Projects are included in discontinued
operations and are excluded from Project income and Project
Adjusted EBITDA as presented in Table 2.
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Three Months ended June 30,
2016
Net income (loss): The Company reported a net loss
of $(18.5) million versus net income
of $14.7 million in the second
quarter of 2015. Higher Project income (discussed below) of
$8.0 million was more than offset by
a $31.5 million non-cash write-off of
deferred financing costs associated with the refinancing of its
term loan and the redemption of its 2017 convertible debentures,
which was included in interest expense (see discussion on page 7 of
this release). The impact of this write-off on interest
expense was partially offset by lower interest payments resulting
from debt repayment. Another significant factor in the
year-over-year decrease was that 2015 results included $33.6 million of net income from discontinued
operations (Wind business, which was sold in June 2015), including a pretax gain on sale of
$47.3 million.
Project income increased to $25.2
million from $17.2 million in
the year-ago period. The $8.0
million increase was driven primarily by Manchief, which had
a gas turbine overhaul in the prior year, and a $5.4 million increase in the fair value of
derivatives, partially offset by lower results at Curtis Palmer,
which had lower water flows this quarter.
Project Adjusted EBITDA increased $2.3 million to $46.2
million in the second quarter of 2016 from $43.9 million in the second quarter of
2015. The increase was driven by the 2015 gas turbine
overhaul at Manchief and higher water flows at Mamquam and Koma
Kulshan, partially offset by lower water flows at Curtis Palmer,
higher gas turbine maintenance resulting from outages at
Kapuskasing and North Bay, and lower fuel optimization and
increased maintenance expense at Morris. In addition, the
appreciation of the U.S. dollar relative to the Canadian dollar as
compared to the exchange rate in the second quarter of 2015 reduced
Project Adjusted EBITDA by approximately $0.5 million.
Corporate-level general and administrative (G&A)
expense (shown as "Administration" on the Consolidated
Statements of Operations) decreased $0.8
million to $5.8 million in the
second quarter of 2016 from $6.6
million a year ago. The improvement was due primarily
to lower rent expense resulting from relocation of the corporate
headquarters and consolidation of offices and to lower compensation
expense, including severance costs.
Six Months ended June 30,
2016
Net income (loss): The Company had a net loss of
$(33.5) million versus net income of
$32.2 million for the first six
months of 2015. Higher Project income (discussed below) of
$15.1 million, lower corporate
G&A expense and lower cash interest expense were more than
offset by the write-off of deferred financing costs in the second
quarter, a largely unrealized foreign exchange loss (versus a gain
recorded in 2015) and net income from discontinued operations of
$21.1 million recorded in 2015 that
did not recur in 2016.
Project income increased to $53.9
million from $38.8 million in
the year-ago period. The $15.1
million increase was driven primarily by lower fuel and
operations and maintenance expenses as a result of outages in 2015
(particularly at Manchief), lower depreciation expense (following
an impairment of long-lived assets in 2015) and lower project-level
interest expense (due to debt repayment).
Project Adjusted EBITDA increased $6.2 million to $108.7 million from $102.5 million. The increase was driven by
the prior-year overhaul at Manchief, higher water flows at Curtis
Palmer (in the first quarter) and Mamquam, and reductions in
compensation expense and development expense in the Un-allocated
Corporate segment, partially offset by gas turbine overhaul
expenses at Kenilworth,
Kapuskasing, and North Bay.
In addition, the appreciation of the U.S. dollar relative to the
Canadian dollar as compared to the exchange rate in the first six
months of 2015 reduced Project Adjusted EBITDA by approximately
$3.1 million.
Corporate-level G&A expense decreased $4.1 million to $11.9
million in the first six months of 2016 from $16.0 million a year ago. The improvement
was due primarily to lower rent expense, headcount-related savings,
lower severance expense and other factors.
Cash Flow
Table 3 presents cash flow results for the Company for the three
and six months ended June 30, 2016 as
compared to the same periods in 2015. Cash provided by
operating activities is a GAAP measure. Cash
Distributions from Projects is the amount of cash distributed
by the projects to the Company out of available project cash flow
after all project-level operating costs, interest payments,
principal repayment, capital expenditures and working capital
requirements. It is not a non-GAAP measure.
Effective this quarter, the Company has discontinued use of two
non-GAAP metrics, Adjusted Cash Flows from Operating Activities and
Adjusted Free Cash Flow, as a result of updated guidelines issued
by the SEC Staff with respect to the use of non-GAAP financial
measures.
Atlantic Power
Corporation
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Table 3 – Cash
Flow Results
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(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
|
Three months ended
June 30,
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Six months ended
June 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Cash Provided by
Operating Activities
|
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$24.3
|
$18.3
|
|
$53.7
|
$53.4
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Amount attributable to
Discontinued
Operations included above
|
|
-
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11.1
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-
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21.9
|
|
|
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Cash Distributions
from Projects (excludes
Discontinued Operations) (1)
|
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42.7
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37.6
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96.0
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94.7
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(1)
Excludes cash distributions from the Wind Projects of $0 and $2.0
million for the three months ended June 30, 2016 and 2015,
respectively, and $0 and $9.3 million for the six months ended June
30, 2016 and 2015, respectively. The Wind Projects are
included in discontinued operations.
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Three Months ended June 30,
2016
Cash provided by operating activities increased
$6.0 million to $24.3 million from
$18.3 million in the second quarter
of 2015. Last year's result included $11.1 million of operating cash flow from the
Wind business. Excluding this discontinued operation,
operating cash flow increased approximately $17 million from the second quarter of
2015. The increase was primarily attributable to lower cash
interest payments ($8.8 million) due
to debt repayment, higher Project Adjusted EBITDA ($2.2 million) and lower corporate G&A expense
($0.8 million). Severance
expense was $0.1 million in the
second quarter of 2016 versus $0.5
million in the year-ago period and restructuring and other
expenses were nil in the second quarter of 2016 versus $0.2 million in the year-ago period. Most
of the severance and restructuring and other expenses are included
in G&A expense and thus were a factor in the decline in that
expense.
Changes in other operating balances (such as receivables,
payables and certain other assets and liabilities) were a positive
$31.9 million in the second quarter
of 2016 versus $0.7 million in the
year-ago period. The 2015 figure included $1.5 million from the Wind business. During
the second quarter of 2016, the Company wrote off $31.5 million of deferred financing costs, which
expense was included in net income and reflected on the cash flow
statement as a change in other operating balances, with no net
impact on cash flow. Excluding this item, which is not a
working capital item, changes in working capital totaled
approximately $0.4 million, which was
not significant to the operating cash flow result of $24.3 million for the second quarter of 2016 or
to the $17 million year-over-year
increase in operating cash flow excluding the Wind
business.
During the quarter, the Company used operating cash flow to
repay term loan debt of $25.1 million
and project debt of $2.1 million,
make capital expenditures of $1.3
million and pay preferred dividends of $2.2 million. In the second quarter of
2015, repayment of the term loan was $25.6
million, project debt repayment was $3.8 million, capital expenditures were
$3.7 million and preferred dividends
were $2.3 million.
Cash Distributions from Projects increased $5.1 million to $42.7
million for the second quarter of 2016 from $37.6 million for the same period in 2015.
The increase was primarily due to Manchief, which had a gas turbine
overhaul in 2015; Curtis Palmer, which benefited from higher water
flows in the first quarter of this year, and Cadillac.
Six Months ended June 30,
2016
Cash provided by operating activities of $53.7 million in the first six months of 2016
increased $0.3 million from
$53.4 million in the six months of
2015. The 2015 result included $21.9
million of operating cash flow from the Wind business.
Excluding this discontinued operation, operating cash flow
increased approximately $22
million. This increase was primarily attributable to
lower cash interest payments ($10.1
million, excluding a $1.5
million reduction attributable to the Wind business) due to
debt repayment, higher Project Adjusted EBITDA ($6.2 million) and lower corporate G&A expense
($4.1 million). Severance
expense was $0.2 million in the first
six months of 2016 versus $3.4
million in the comparable 2015 period and restructuring and
other expenses totaled $0.5 million
in the first six months of 2016 versus $1.1
million in the comparable 2015 period. A portion of
the severance expense in the 2015 period was included in the
Un-allocated Corporate segment of Project Adjusted EBITDA; the
majority of the remaining severance and restructuring and other
expenses were included in G&A expense for both the 2016 and
2015 periods and thus contributed to the decline in G&A
expense.
Changes in other operating balances in the first six months of
2016 were a positive $36.1 million
versus $16.8 million in the
comparable 2015 period. The 2015 figure included $3.3 million related to the Wind business.
The 2016 result included $31.5
million for the write-off of deferred financing costs, which
as previously discussed did not affect cash flow. Excluding
this item, changes in working capital benefited operating cash flow
by approximately $4.6 million in the
first six months of 2016. On a year-over-year basis,
excluding the portion attributable to the Wind business, working
capital changes had a negative impact of approximately $8.9 million.
In the first six months of 2016, the Company used operating cash
flow to repay term loan debt of $50.5
million and project debt of $4.25
million, make capital expenditures of $2.0 million and pay preferred dividends of
$4.2 million. In the first six
months of 2015, repayment of the term loan was $46.9 million, project debt repayments were
$6.3 million, capital expenditures
were $5.0 million and preferred
dividends were $4.6
million.
Cash Distributions from Projects increased $1.3 million to $96.0
million for the first six months of 2016 from $94.7 million for the same period in 2015.
The increase was primarily due to Morris, which received a
construction cost reimbursement this year, and Curtis Palmer, which
benefited from higher water flows in the first quarter of this
year. This was partially offset by Chambers, which under the
new project debt agreement in 2014 made a nine-month distribution
in January 2015 versus a six-month
distribution in January 2016.
Results of Discontinued Operations
The Wind projects, which were sold in June 2015, had no impact on financial results in
2016. For the second quarter of 2015, the Wind projects had
Project income of $64.2 million and
Cash provided by operating activities of $11.1 million. Cash Distributions from the
Wind projects were $2.0
million. For the first six months of 2015, the Wind
projects had Project income of $53.4
million, Cash provided by operating activities of
$21.9 million and Cash Distributions
of $9.3 million.
Liquidity and Recent Balance Sheet Initiatives
Balance Sheet
Refinancing of Term Loan and Revolver
As previously reported, in April
2016, the Company closed a new $700
million senior secured term loan and $200 million revolving credit facility, both at
the APLP Holdings intermediate holding company. Proceeds from
the term loan, net of an original issue discount of $21 million, were used to redeem the existing
$447.9 million term loan and the
Company's 2017 convertible debentures (as discussed below) and to
pay transaction costs. Net proceeds after debt repayment and
transaction costs were approximately $104
million. Transaction costs totaling approximately
$15.9 million (including $1.5 million incurred mostly in the first
quarter) were recorded in the second quarter as deferred financing
costs and will be amortized to interest expense over the life of
the loan. In addition, the Company recorded non-cash
write-offs of deferred financing costs of $30.2 million associated with the previous term
loan and $1.3 million associated with
the 2017 convertible debentures. These write-offs were
included in interest expense.
The weighted average interest rate on the new term loan,
including the impact of interest rate swaps on a portion of the
loan, is currently approximately 6.25%. The term loan is
subject to mandatory 1% annual amortization and mandatory
prepayment via the greater of a 50% cash sweep or such other amount
that is required to achieve a targeted declining debt balance
specified in the credit agreement for each quarter through the
maturity date of the loan. The amount of debt repayment on
the new term loan is expected to be approximately $60 million in 2016, including approximately
$35 million in the second half of the
year.
Redemption of 2017 Convertible Debentures
As previously reported, on May 13,
2016, the Company completed the redemption of its
outstanding Cdn$67.2 million Series A
Convertible Debentures and its Cdn$75.8
million Series B Convertible Debentures at par plus accrued
interest. The redemption was funded with US$110.7 million of proceeds from the term loan
refinancing.
Substantial Issuer Bid for 2019 Convertible
Debentures
In June 2016, the Company
announced a substantial issuer bid (the "Offer") for up to
$65 million of its Series C
Convertible Debentures maturing in June
2019 at a price of $965 per
$1,000 of principal amount, plus
accrued and unpaid interest. On July
25, 2016, the Company announced that it had taken up and
canceled $62.7 million of such
debentures under the Offer. Following this transaction, the
remaining amount of Series C Convertible Debentures is
approximately $42.6 million.
Mandatory Debt Repayment
During the second quarter of 2016, the Company amortized
$25.1 million of the APLP Holdings
term loan and $2.1 million of
project-level debt. Year to date, the Company has amortized
$50.5 million of term loan debt,
including $25.3 million in the first
quarter related to the previous term loan, and $4.25 million of project-level debt.
Normal Course Issuer Bid (Discretionary repurchases)
The Company did not repurchase any convertible debentures under
the NCIB in the second quarter of 2016. For the year to date,
the Company has repurchased a total of $18.8
million principal amount of convertible debentures, and has
reached the maximum amounts of repurchases of 2019 convertible
debentures allowable under the NCIB ($11.7
million for the Series C and Cdn$9.0
million for the Series D). The Company repurchased
slightly more than 1.6 million common shares in May through July,
bringing the total since the NCIB was implemented in December to
approximately 2.2 million shares, at a total cost of approximately
$5.0 million (average price of
$2.25 per share).
Debt Maturity Profile
Following the redemption of the 2017 convertible debentures in
May, the Company now has no bullet maturities at the corporate
level prior to June 2019, when the
remaining $42.6 million of Series C
convertible debentures will mature. In addition, the Company
has $62.7 million (U.S. dollar
equivalent) of Series D convertible debentures maturing in December
2019. The reshaping of the Company's maturity profile is
further improved by the later maturity dates for the new term loan
(2023 versus 2021 previously) and the new revolver (2021 versus
2018 previously). The Company also has one project debt
bullet maturity during this period – the term loan at its
Piedmont project totaling
$54 million at its maturity date of
August 2018. In addition to these bullet maturities, the
Company has scheduled amortization of other project debt through
2025 and required repayment of the APLP Holdings term loan per a
targeted debt schedule through the 2023 maturity date.
Liquidity
As shown in Table 4, the Company's liquidity at June 30, 2016 was $251
million, including $154
million of unrestricted cash and $97
million of borrowing capacity under its corporate
revolver. Liquidity at March 31,
2016 was $178 million,
including $64 million of unrestricted
cash and $114 million of borrowing
capacity.
The $16.5 million reduction in
borrowing capacity was attributable to the reduction in the size of
the new revolver ($200 million versus
$210 million) and a $6.5 million increase in letters of credit
outstanding, which was the result of an increased requirement
associated with the larger term loan ($9.5
million), offset by reductions elsewhere.
The approximate $90 million
increase in unrestricted cash from the March
31, 2016 level of $64 million
was primarily attributable to an approximate $100 million increase in cash from the
April 2016 term loan refinancing
proceeds, net of cash used for the May
2016 redemption of the 2017 convertible debentures and the
repurchase of 1.5 million common shares during the quarter.
This $100 million increase was
partially offset by amortization of term loan and project debt,
capital expenditures and preferred dividend payments that in
aggregate exceeded the Company's operating cash flow for the
quarter by approximately $6
million.
As discussed previously, in July the Company repurchased
$62.7 million of its Series C
Convertible Debentures at a price of 96.5%. Pro forma for
that transaction, which required approximately $61 million of cash, the Company's unrestricted
cash at June 30, 2016 was
approximately $93 million.
Atlantic Power
Corporation
|
|
|
|
Table 4 –
Liquidity (in millions of U.S. dollars)
|
|
|
|
Unaudited
|
|
|
Pro
Forma(1)
|
|
March 31,
2016
|
June 30,
2016
|
June 30,
2016
|
Revolver
capacity
|
$210.0
|
$200.0
|
$200.0
|
Letters of credit
outstanding
|
(96.3)
|
(102.8)
|
(102.8)
|
Unused borrowing
capacity
|
113.7
|
97.2
|
97.2
|
Unrestricted
cash
|
64.3
|
154.2
|
93.0
|
Total
Liquidity
|
$178.0
|
$251.4
|
$190.2
|
(1) Pro
forma for the July 2016 substantial issuer bid, which used
approximately $61 million of cash to repurchase $62.7 million of
convertible debentures, including accrued interest and associated
fees.
|
Note: Liquidity
numbers presented do not include restricted cash of $14.3 million
at June 30, 2016 and $10.0 million at March 31, 2016.
|
|
|
|
|
|
|
|
Other Financial Updates
2016 Guidance
The Company has not provided guidance for Project income or Net
income because of the difficulty of making accurate forecasts and
projections without unreasonable efforts with respect to certain
highly variable components of these comparable GAAP metrics,
including changes in the fair value of derivative instruments and
foreign exchange gains or losses. These factors, which
generally do not affect cash flow, are not included in Project
Adjusted EBITDA.
The Company's guidance for 2016 Project Adjusted EBITDA is
$200 to $220 million, which is
unchanged. Project Adjusted EBITDA for the first six months
of 2016 was $108.7 million, which
represented an increase of $6.2
million from the first six months of 2015. Factors
expected to affect results in the second half of 2016 include the
impact of the scheduled outage at Morris, a scheduled gas turbine
overhaul at Oxnard and lower water flows at Curtis Palmer,
partially offset by higher water flows at Mamquam, lower
maintenance expense for Kapuskasing, Nipigon and North
Bay, which had outages in 2015, and improved availability at
Piedmont.
Previously, the Company had provided guidance for Adjusted Cash
Flows from Operating Activities and Adjusted Free Cash Flow, both
of which are non-GAAP metrics that require adjustments that are not
easily reconciled to GAAP measures. The Company has
discontinued the use of both non-GAAP cash flow metrics based on
updated guidelines issued by the SEC Staff in May with respect to
the use of non-GAAP financial measures.
Table 5 provides a bridge of the Company's 2016 Project Adjusted
EBITDA guidance to Cash provided by operating activities. For
purposes of providing this bridge to a cash flow measure, the
impact of changes in working capital is assumed to be nil.
Atlantic Power
Corporation
|
Table 5 – Bridge
of 2016 Project Adjusted EBITDA Guidance to Cash Provided by
Operating Activities
|
(in millions of
U.S. dollars)
|
Unaudited
|
|
|
|
2016 Project
Adjusted EBITDA Guidance(1)
|
$200 -
$220
|
Adjustment for equity
method projects(2)
|
(2)
|
Corporate G&A
expense
|
(25)
|
Cash interest
payments
|
(74)
|
Cash taxes
|
(4)
|
Other
|
-
|
Cash provided by
operating activities
|
$95 -
$115
|
Note: For the
purpose of providing a bridge of Project Adjusted EBITDA guidance
to a cash flow measure, the impact of changes in working capital on
Cash provided by operating activities is assumed to be
nil.
(1)
Initially provided May 5, 2016 and affirmed August 8,
2016.
|
(2) For
equity method projects, represents difference between Project
Adjusted EBITDA and cash distribution from equity method
projects.
|
Optimization Investments
The Company expects to make approximately $3 million of optimization-related investments in
its projects in 2016, with the majority of those for upgrades to a
boiler and two combustion turbines at Morris and a spillway upgrade
project at Curtis Palmer. The Morris projects are expected to
be completed by the end of the third quarter and the Curtis Palmer
project by October.
The Company expects to realize a cash flow benefit of
approximately $8 million in 2016 from
investments made in 2013 through 2016 totaling approximately
$25 million. This expectation
is reduced slightly from $10 million
previously primarily because higher levels of waste heat at
Nipigon have reduced the need for
the duct burners and booster pump that were installed as
optimization projects in 2014 and 2015, respectively. The
cash flow benefit of additional waste heat has more than offset the
lower return from optimization.
Maintenance and Capex
The Company now expects to have capital expenditures of
approximately $8 million in 2016,
including the $3 million for
optimization investments, versus its previous expectation of
$14 million. The reduction is
primarily attributable to a deferral of the expenditures for a new
fuel shredder at Williams Lake;
previously, the Company had anticipated making initial outlays of
$6 million for the project in
2016. The investment in a new fuel shredder is subject to
receipt of an amended air permit (expected in the third quarter,
but subject to potential appeal) and an extension of the existing
contract with BC Hydro. In addition to the $8 million of capital expenditures, the Company
expects to incur maintenance expense in 2016 of approximately
$45 million. Both the capex and
maintenance expenditures forecasts include the Company's share of
projects in which it has an equity ownership interest.
Morris Outage
As planned, in late July the Morris project began a six-week
maintenance outage that coincides with a scheduled turnaround at
the customer's facility. The outage is expected to be
completed by the end of August. During this outage, the
Company will continue work on upgrading two of the project's
combustion turbines, overhaul the steam turbine and upgrade the
plant's Distributed Controls System. Together with an upgrade
to one of the project's boilers also under way, these upgrades are
expected to increase output and fuel efficiency as well as enhance
reliability of steam delivery for the customer. The impact of
higher maintenance expense and lost margin during the extended
outage is expected to be approximately $9
million on Project Adjusted EBITDA in the third quarter of
2016.
Share Purchases by Insiders
In the second quarter of 2016, an executive of the Company
purchased 30,000 common shares at an average price of US$2.30 per share. For the year-to-date
period, a total of 218,000 shares have been purchased by executives
and directors of the Company at an average price of US$2.21 per share. Including those made in
2015, purchases by management and directors total approximately 1.3
million common shares. The average purchase price for these
purchases was US$2.27 per
share. There have been no sales of shares by officers or
directors this year other than those sold automatically for tax
withholding purposes upon vesting under the Long-Term Incentive
Plan.
Supplementary Financial Information
For a discussion of Non-GAAP disclosures and schedules
reconciling the Company's non-GAAP measure to the comparable GAAP
measure, please refer to pages 16-22 of this release.
Included in this section is a summary of Project income and Project
Adjusted EBITDA by project for the three and six months ended
June 30, 2016 and 2015 (Tables 11 and
12, respectively).
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call on Tuesday, August 9,
2016 at 8:30 AM ET. An
accompanying slide presentation will be available on the Company's
website prior to the call.
Conference Call / Webcast Information:
Date: Tuesday, August
9, 2016
Start Time: 8:30 AM
ET
Phone Number: U.S. (Toll Free) 1-855-239-3193;
Canada (Toll Free) 1-855-669-9657;
International (Toll) 1-412-542-4129
Conference Access: Please request access to the
Atlantic Power conference call.
Webcast: The call will be broadcast over Atlantic
Power's website at www.atlanticpower.com.
Replay/Archive Information:
Replay: Access conference call number 10088439 at
the following telephone numbers: U.S. (Toll Free)
1-877-344-7529; Canada (Toll Free)
1-855-669-9658; International (Toll) 1-412-317-0088. The
replay will be available one hour after the end of the conference
call through September 9, 2016 at
11:59 PM ET.
Webcast archive: The conference call will be
archived on Atlantic Power's website at www.atlanticpower.com for a
period of 12 months.
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 2,138
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,500 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's shares trade 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
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available 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:
- the Company believes that it has made progress on its goal of
building intrinsic value per share;
- the Company expects to repay $35
million of term loan debt and $6.7
million of project debt in the second half of 2016;
- the Company's views on an appropriate level of leverage;
- the expected availability of cash and/or liquidity for further
debt and equity repurchases, internal or external growth
investments;
- the Company's ability to withstand challenging power market
conditions;
- the Company expects that the new revolver will provide
additional flexibility with respect to financing growth and
retiring debt securities;
- the Company's views of its debt maturity profile;
- the Company expects that discretionary optimization investments
in its fleet will be approximately $3
million in 2016, and that the majority of those investments
will be made at the Morris and Curtis Palmer projects;
- the timing of the completion of upgrades at the Morris and
Curtis projects;
- the Company expects to realize a cash flow benefit from
discretionary investments in its existing projects of approximately
$8 million in 2016;
- the Company expects that in 2016, capital expenditures will
total approximately $8 million,
before a $5 million credit for a
reimbursement for a customer-owned construction project, and
maintenance expense will total approximately $45 million;
- timing of capital expenditures for a new fuel shredder at
Williams Lake and the timing and
probability of receipt of an amended air permit and contract
extension;
- the impact of the Morris maintenance outage in the third
quarter of 2016 will be approximately $9
million to Project Adjusted EBITDA;
- the Company's expectations as to which factors will affect
results in the second half of 2016;
- 2016 Project Adjusted EBITDA for the Company will be in the
range of $200 to $220 million;
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 6 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
|
(Unaudited)
|
|
|
|
June
30,
|
December
31,
|
|
2016
|
2015
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$154.2
|
$72.4
|
Restricted
cash
|
14.3
|
15.2
|
Accounts
receivable
|
42.9
|
39.6
|
Inventory
|
1.6
|
-
|
Prepayments
and other current assets
|
17.3
|
16.9
|
Assets held
for sale
|
8.6
|
8.3
|
Other current
assets
|
2.5
|
4.5
|
Total current
assets
|
241.4
|
156.9
|
|
|
|
Property, plant and
equipment, net
|
768.1
|
777.7
|
Equity investments in
unconsolidated affiliates
|
281.0
|
286.2
|
Power purchase
agreements and intangible assets, net
|
287.0
|
308.9
|
Goodwill
|
134.5
|
134.5
|
Derivative
instruments asset
|
1.1
|
0.3
|
Deferred income
taxes
|
2.2
|
-
|
Other
assets
|
6.0
|
6.7
|
Total
assets
|
$1,721.3
|
$1,671.2
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$6.4
|
$6.9
|
Accrued
interest
|
0.9
|
1.6
|
Other accrued
liabilities
|
22.5
|
25.4
|
Current
portion of long-term debt
|
96.4
|
15.8
|
Current
portion of derivative instruments liability
|
23.6
|
36.7
|
Other current
liabilities
|
4.4
|
2.5
|
Total current
liabilities
|
154.2
|
88.9
|
|
|
|
Long-term
debt
|
807.8
|
682.7
|
Convertible
debentures
|
163.4
|
277.7
|
Derivative
instruments liability
|
28.5
|
20.8
|
Deferred income
taxes
|
69.1
|
85.7
|
Power purchase and
fuel supply agreement liabilities, net
|
27.0
|
27.0
|
Other long-term
liabilities
|
54.4
|
53.2
|
Total
liabilities
|
$1,304.4
|
$1,236.0
|
|
|
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 120,682,964 and
122,153,082
|
|
|
issued and
outstanding at June 30, 2016 and December 31, 2015,
respectively
|
1,286.8
|
1,290.6
|
Accumulated other
comprehensive loss
|
(120.2)
|
(139.3)
|
Retained
deficit
|
(971.0)
|
(937.4)
|
Total Atlantic Power
Corporation shareholders' equity
|
195.6
|
213.9
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Total
equity
|
416.9
|
435.2
|
Total liabilities and
equity
|
$1,721.3
|
$1,671.2
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
Table 7 –
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,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Project
revenue:
|
|
|
|
|
|
|
Energy
sales
|
|
$45.1
|
$47.5
|
|
$97.6
|
$101.5
|
Energy
capacity revenue
|
|
37.3
|
38.0
|
|
69.2
|
71.5
|
Other
|
|
15.8
|
17.6
|
|
37.8
|
41.4
|
|
|
98.2
|
103.1
|
|
204.6
|
214.4
|
Project
expenses:
|
|
|
|
|
|
|
Fuel
|
|
35.1
|
38.0
|
|
74.0
|
84.2
|
Operations and
maintenance
|
|
30.0
|
35.3
|
|
51.2
|
56.8
|
Development
|
|
-
|
-
|
|
-
|
1.1
|
Depreciation
and amortization
|
|
25.5
|
28.2
|
|
50.3
|
56.1
|
|
|
90.6
|
101.5
|
|
175.5
|
198.2
|
Project other income
(expense):
|
|
|
|
|
|
|
Change in fair
value of derivative instruments
|
|
12.2
|
6.8
|
|
11.0
|
5.2
|
Equity in
earnings of unconsolidated affiliates
|
|
7.6
|
8.6
|
|
18.3
|
19.3
|
Interest,
net
|
|
(2.4)
|
(2.0)
|
|
(4.5)
|
(4.1)
|
Other income,
net
|
|
0.2
|
2.2
|
|
-
|
2.2
|
|
|
17.6
|
15.6
|
|
24.8
|
22.6
|
Project
income
|
|
25.2
|
17.2
|
|
53.9
|
38.8
|
|
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
|
|
Administration
|
|
5.8
|
6.6
|
|
11.9
|
16.0
|
Interest,
net
|
|
51.2
|
24.6
|
|
67.8
|
50.3
|
Foreign
exchange loss (gain)
|
|
2.6
|
4.8
|
|
22.5
|
(27.4)
|
Other income,
net
|
|
0.3
|
(1.7)
|
|
(2.2)
|
(3.1)
|
|
|
59.9
|
34.3
|
|
100.0
|
35.8
|
(Loss) income from
continuing operations before income taxes
|
|
(34.7)
|
(17.1)
|
|
(46.1)
|
3.0
|
Income tax (benefit)
expense
|
|
(18.4)
|
2.9
|
|
(16.8)
|
(1.7)
|
(Loss) income from
continuing operations
|
|
(16.3)
|
(20.0)
|
|
(29.3)
|
4.7
|
Net income from
discontinued operations, net of tax (1)
|
|
-
|
33.6
|
|
-
|
21.1
|
Net (loss)
income
|
|
(16.3)
|
13.6
|
|
(29.3)
|
25.8
|
Net (loss)
attributable to noncontrolling interests
|
|
-
|
(3.4)
|
|
-
|
(11.0)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
2.2
|
2.3
|
|
4.2
|
4.6
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
($18.5)
|
$14.7
|
|
($33.5)
|
$32.2
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share:
|
|
|
|
|
|
|
(Loss)
from continuing operations attributable to Atlantic Power
Corporation
|
|
($0.15)
|
($0.18)
|
|
($0.28)
|
$-
|
Income from
discontinued operations, net of tax
|
|
-
|
0.30
|
|
-
|
0.26
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
($0.15)
|
$0.12
|
|
($0.28)
|
$0.26
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
121.6
|
121.9
|
|
121.8
|
121.7
|
Diluted
|
|
121.6
|
122.1
|
|
121.8
|
121.9
|
|
|
|
|
|
|
|
Dividends paid per
common share:
|
|
$-
|
$0.02
|
|
$-
|
$0.05
|
(1) Includes
contributions from the Wind Projects, which are components of
discontinued operations.
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
Table 8 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
|
|
Unaudited
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
2016
|
2015
|
Cash provided by
operating activities:
|
|
|
|
|
Net (loss)
income
|
|
|
($29.3)
|
$25.8
|
Adjustments to
reconcile to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
|
50.3
|
66.4
|
Gain from discontinued
operations
|
|
|
-
|
(47.3)
|
Gain on sale of
development project and other assets
|
|
|
-
|
(2.3)
|
Gain on purchase and
cancellation of convertible debentures
|
|
|
(2.5)
|
(3.0)
|
Loss on disposal of
fixed assets
|
|
|
0.2
|
-
|
Stock-based
compensation expense
|
|
|
0.8
|
1.0
|
Equity in earnings
from unconsolidated affiliates
|
|
|
(18.3)
|
(19.3)
|
Distributions from
unconsolidated affiliates
|
|
|
23.5
|
27.0
|
Unrealized foreign
exchange gain
|
|
|
22.5
|
(27.6)
|
Change in fair value
of derivative instruments
|
|
|
(11.0)
|
(4.5)
|
Change in deferred
income taxes
|
|
|
(18.6)
|
20.4
|
Change in other
operating balances
|
|
|
|
|
Accounts
receivable
|
|
|
(3.3)
|
0.6
|
Inventory
|
|
|
(0.4)
|
2.8
|
Prepayments and other
assets
|
|
|
39.2
|
9.3
|
Accounts
payable
|
|
|
3.5
|
(3.4)
|
Accruals and other
liabilities
|
|
|
(2.9)
|
7.5
|
Cash provided by
operating activities
|
|
|
53.7
|
53.4
|
|
|
|
|
|
Cash provided by
investing activities:
|
|
|
|
|
Change in restricted
cash
|
|
|
0.9
|
4.9
|
Proceeds from sale of
assets and equity investments, net
|
|
|
-
|
326.3
|
Contribution to
unconsolidated affiliate
|
|
|
-
|
(0.6)
|
Capitalized
development costs
|
|
|
-
|
(0.8)
|
Reimbursement of
construction cost
|
|
|
4.7
|
-
|
Purchase of property,
plant and equipment
|
|
|
(2.0)
|
(5.0)
|
Cash provided by
investing activities
|
|
|
3.6
|
324.8
|
|
|
|
|
|
Cash used in
financing activities:
|
|
|
|
|
Proceeds from senior
secured term loan facility, net of discount
|
|
|
679.0
|
-
|
Common share
repurchases
|
|
|
(4.7)
|
-
|
Repayment of corporate
and project-level debt
|
|
|
(502.7)
|
(62.2)
|
Repayment of
convertible debentures
|
|
|
(127.0)
|
(18.0)
|
Deferred financing
costs
|
|
|
(15.9)
|
-
|
Dividends paid to
common shareholders
|
|
|
-
|
(5.8)
|
Dividends paid to
noncontrolling interests
|
|
|
-
|
(3.8)
|
Dividends paid to
preferred shareholders
|
|
|
(4.2)
|
(4.6)
|
Cash used in
financing activities
|
|
|
24.5
|
(94.4)
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
81.8
|
283.8
|
Less cash at
discontinued operations
|
|
-
|
-
|
Cash and cash
equivalents at beginning of period at discontinued
operations
|
|
-
|
3.9
|
Cash and cash
equivalents at beginning of period
|
|
|
72.4
|
106.1
|
Cash and cash
equivalents at end of period
|
|
|
$154.2
|
$393.8
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Interest
paid
|
|
|
$34.7
|
$46.3
|
Income taxes paid,
net
|
|
|
$1.9
|
$1.7
|
Accruals for
construction in progress
|
|
|
$1.0
|
-
|
Non-GAAP 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. Investors are cautioned that
the Company may calculate this non-GAAP measure in a manner that is
different from other companies. The most directly comparable
GAAP measure is Project income (loss). 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) and to Net income (loss) by segment and on a
consolidated basis is provided in Tables 9A through 9D on pages 17
and 18 of this news release.
Cash Distributions from Projects is the amount of cash
distributed by the projects to the Company out of available project
cash flow after all project-level operating costs, interest
payments, principal repayment, capital expenditures and working
capital requirements. It is not a non-GAAP measure.
Project Adjusted EBITDA, a non-GAAP measure, is the most comparable
measure, but it is before debt service, capital expenditures and
working capital requirements. The Company has provided a
bridge of Project Adjusted EBITDA to Cash Distributions from
Projects in Tables 10A through 10D on pages 19 and 20 of this
release.
Table 11 (page 21) presents Project income (loss) by project for
selected projects for the three and six months ended June 30, 2016 and the comparable periods in
2015. Table 12 (page 22) presents Project Adjusted EBITDA by
project for the same projects as shown in Table 11 for the three
and six months ended June 30, 2016
and the comparable periods in 2015. Table 12 also provides a
reconciliation of Project Adjusted EBITDA to Net Income (loss) for
the three- and six-month periods ended June
30, 2016 and June 30,
2015.
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
Table 9A –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Un-Allocated
|
|
|
|
|
|
East
U.S.
|
|
West
U.S.
|
|
Canada
|
|
Corporate
|
|
Consolidated
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
|
$9.6
|
|
|
$4.6
|
|
|
$12.9
|
|
|
($45.6)
|
|
|
($18.5)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.2
|
|
|
2.2
|
Net (loss)
attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net (loss)
income
|
|
|
9.6
|
|
|
4.6
|
|
|
12.9
|
|
|
(43.4)
|
|
|
(16.3)
|
Net income from
discontinued operations, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net income (loss)
from continuing operations
|
|
|
9.6
|
|
|
4.6
|
|
|
12.9
|
|
|
(43.4)
|
|
|
(16.3)
|
Income tax (benefit)
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(18.4)
|
|
|
(18.4)
|
Income (loss) from
continuing operations before income taxes
|
|
|
9.6
|
|
|
4.6
|
|
|
12.9
|
|
|
(61.8)
|
|
|
(34.7)
|
Administration
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5.8
|
|
|
5.8
|
Interest,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
51.2
|
|
|
51.2
|
Foreign exchange loss
(gain)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.6
|
|
|
2.6
|
Other income,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
0.3
|
Project income
(loss)
|
|
|
9.6
|
|
|
4.6
|
|
|
12.9
|
|
|
(1.9)
|
|
|
25.2
|
Change in fair value
of derivative instruments
|
|
|
(2.5)
|
|
|
-
|
|
|
(11.6)
|
|
|
1.9
|
|
|
(12.2)
|
Depreciation and
amortization
|
|
|
10.9
|
|
|
9.9
|
|
|
9.6
|
|
|
-
|
|
|
30.4
|
Interest,
net
|
|
|
2.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.9
|
Other project
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1)
|
|
|
(0.1)
|
Project Adjusted
EBITDA
|
|
|
20.9
|
|
|
14.5
|
|
|
10.9
|
|
|
(0.1)
|
|
|
46.2
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9B –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Un-Allocated
|
|
|
|
|
|
East
U.S.
|
|
West
U.S.
|
|
Canada
|
|
Corporate
|
|
Consolidated
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
|
$16.7
|
|
|
($4.3)
|
|
|
$2.8
|
|
|
($0.5)
|
|
|
$14.7
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.3
|
|
|
2.3
|
Net (loss)
attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3.4)
|
|
|
(3.4)
|
Net (loss)
income
|
|
|
16.7
|
|
|
(4.3)
|
|
|
2.8
|
|
|
(1.6)
|
|
|
13.6
|
Net income from
discontinued operations, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
33.6
|
|
|
33.6
|
Net income (loss)
from continuing operations
|
|
|
16.7
|
|
|
(4.3)
|
|
|
2.8
|
|
|
(35.2)
|
|
|
(20.0)
|
Income tax (benefit)
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.9
|
|
|
2.9
|
Income (loss) from
continuing operations before income taxes
|
|
|
16.7
|
|
|
(4.3)
|
|
|
2.8
|
|
|
(32.3)
|
|
|
(17.1)
|
Administration
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6.6
|
|
|
6.6
|
Interest,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
24.6
|
|
|
24.6
|
Foreign exchange loss
(gain)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.8
|
|
|
4.8
|
Other income,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1.7)
|
|
|
(1.7)
|
Project income
(loss)
|
|
|
16.7
|
|
|
(4.3)
|
|
|
2.8
|
|
|
2.0
|
|
|
17.2
|
Change in fair value
of derivative instruments
|
|
|
(3.0)
|
|
|
-
|
|
|
(3.9)
|
|
|
-
|
|
|
(6.9)
|
Depreciation and
amortization
|
|
|
10.8
|
|
|
10.0
|
|
|
12.7
|
|
|
(0.2)
|
|
|
33.3
|
Interest,
net
|
|
|
2.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.5
|
Other project
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.2)
|
|
|
(2.2)
|
Project Adjusted
EBITDA
|
|
|
27.0
|
|
|
5.7
|
|
|
11.6
|
|
|
(0.4)
|
|
|
43.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9C –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Six Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Un-Allocated
|
|
|
|
|
|
East
U.S.
|
|
West
U.S.
|
|
Canada
|
|
Corporate
|
|
Consolidated
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
|
$25.6
|
|
|
$2.3
|
|
|
$29.3
|
|
|
($90.7)
|
|
|
($33.5)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.2
|
|
|
4.2
|
Net (loss)
attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net (loss)
income
|
|
|
25.6
|
|
|
2.3
|
|
|
29.3
|
|
|
(86.5)
|
|
|
(29.3)
|
Net income from
discontinued operations, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net income (loss)
from continuing operations
|
|
|
25.6
|
|
|
2.3
|
|
|
29.3
|
|
|
(86.5)
|
|
|
(29.3)
|
Income tax (benefit)
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(16.8)
|
|
|
(16.8)
|
Income (loss) from
continuing operations before income taxes
|
|
|
25.6
|
|
|
2.3
|
|
|
29.3
|
|
|
(103.3)
|
|
|
(46.1)
|
Administration
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11.9
|
|
|
11.9
|
Interest,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
67.8
|
|
|
67.8
|
Foreign exchange loss
(gain)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22.5
|
|
|
22.5
|
Other income,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.2)
|
|
|
(2.2)
|
Project income
(loss)
|
|
|
25.6
|
|
|
2.3
|
|
|
29.3
|
|
|
(3.3)
|
|
|
53.9
|
Change in fair value
of derivative instruments
|
|
|
(1.7)
|
|
|
-
|
|
|
(12.1)
|
|
|
2.8
|
|
|
(11.0)
|
Depreciation and
amortization
|
|
|
21.9
|
|
|
19.7
|
|
|
18.5
|
|
|
0.2
|
|
|
60.3
|
Interest,
net
|
|
|
5.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5.4
|
Other project
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.1
|
|
|
0.1
|
Project Adjusted
EBITDA
|
|
|
51.2
|
|
|
22.0
|
|
|
35.7
|
|
|
(0.2)
|
|
|
108.7
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9D –
Reconciliation of Net income (loss) to Project Adjusted EBITDA by
Segment and Consolidated (in millions of U.S.
dollars)
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Un-Allocated
|
|
|
|
|
|
East
U.S.
|
|
West
U.S.
|
|
Canada
|
|
Corporate
|
|
Consolidated
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
|
$28.0
|
|
|
($4.0)
|
|
|
$16.0
|
|
|
($7.8)
|
|
|
$32.2
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.6
|
|
|
4.6
|
Net (loss)
attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(11.0)
|
|
|
(11.0)
|
Net (loss)
income
|
|
|
28.0
|
|
|
(4.0)
|
|
|
16.0
|
|
|
(14.2)
|
|
|
25.8
|
Net income from
discontinued operations, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
21.1
|
|
|
21.1
|
Net income (loss)
from continuing operations
|
|
|
28.0
|
|
|
(4.0)
|
|
|
16.0
|
|
|
(35.3)
|
|
|
4.7
|
Income tax (benefit)
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1.7)
|
|
|
(1.7)
|
Income (loss) from
continuing operations before income taxes
|
|
|
28.0
|
|
|
(4.0)
|
|
|
16.0
|
|
|
(37.0)
|
|
|
3.0
|
Administration
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
16.0
|
|
|
16.0
|
Interest,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
50.3
|
|
|
50.3
|
Foreign exchange loss
(gain)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(27.4)
|
|
|
(27.4)
|
Other income,
net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3.1)
|
|
|
(3.1)
|
Project income
(loss)
|
|
|
28.0
|
|
|
(4.0)
|
|
|
16.0
|
|
|
(1.2)
|
|
|
38.8
|
Change in fair value
of derivative instruments
|
|
|
(0.4)
|
|
|
-
|
|
|
(5.5)
|
|
|
0.8
|
|
|
(5.1)
|
Depreciation and
amortization
|
|
|
21.2
|
|
|
19.6
|
|
|
24.9
|
|
|
0.4
|
|
|
66.1
|
Interest,
net
|
|
|
4.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.9
|
Other project
expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.2)
|
|
|
(2.2)
|
Project Adjusted
EBITDA
|
|
|
53.7
|
|
|
15.6
|
|
|
35.4
|
|
|
(2.2)
|
|
|
102.5
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 10A – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
|
Three months ended
June 30, 2016
|
|
|
|
|
|
|
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
|
$12.2
|
|
($2.1)
|
|
($2.4)
|
|
($1.1)
|
|
$2.6
|
|
$9.1
|
Equity
method
|
8.7
|
|
-
|
|
(0.4)
|
|
(0.1)
|
|
0.8
|
|
9.1
|
Total
|
20.9
|
|
(2.1)
|
|
(2.8)
|
|
(1.2)
|
|
3.4
|
|
18.2
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
11.4
|
|
-
|
|
-
|
|
-
|
|
(3.3)
|
|
8.2
|
Equity
method
|
3.1
|
|
-
|
|
-
|
|
-
|
|
0.6
|
|
3.7
|
Total
|
14.5
|
|
-
|
|
-
|
|
-
|
|
(2.7)
|
|
11.9
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
10.9
|
|
-
|
|
-
|
|
(0.3)
|
|
2.1
|
|
12.7
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
10.9
|
|
-
|
|
-
|
|
(0.3)-
|
|
2.1
|
|
12.7
|
Total
consolidated
|
34.5
|
|
(2.1)
|
|
(2.4)
|
|
(1.4)-
|
|
1.4
|
|
30.0
|
Total equity
method
|
11.8
|
|
-
|
|
(0.5)
|
|
-
|
|
1.5
|
|
12.8
|
Un-allocated
corporate
|
(0.1)
|
|
-
|
|
-
|
|
0.3
|
|
0.1
|
|
0.0
|
Total
|
46.2
|
|
(2.1)
|
|
(2.8)
|
|
(1.4)
|
|
2.9
|
|
42.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
|
Table 10B – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
|
|
Three months ended
June 30, 2015
|
|
|
|
|
|
|
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
|
$17.4
|
|
($2.2)
|
|
($1.8)
|
|
($2.9)
|
|
($2.1)
|
|
$8.4
|
Equity
method
|
9.7
|
|
(1.5)
|
|
(0.7)
|
|
(0.1)
|
|
0.6
|
|
8.1
|
Total
|
27.0
|
|
(3.7)
|
|
(2.5)
|
|
(3.0)
|
|
(1.5)
|
|
16.4
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
2.6
|
|
-
|
|
-
|
|
-
|
|
3.3
|
|
5.9
|
Equity
method
|
3.0
|
|
-
|
|
-
|
|
-
|
|
(0.5)
|
|
2.5
|
Total
|
5.7
|
|
-
|
|
-
|
|
-
|
|
2.8
|
|
8.5
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
11.6
|
|
(0.0)
|
|
(0.0)
|
|
(0.7)
|
|
1.9
|
|
12.8
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
11.6
|
|
(0.0)
|
|
(0.0)
|
|
(0.7)
|
|
1.9
|
|
12.8
|
Total
consolidated
|
31.6
|
|
(2.2)
|
|
(1.8)
|
|
(3.6)
|
|
3.1
|
|
27.1
|
Total equity
method
|
12.7
|
|
(1.5)
|
|
(0.7)
|
|
(0.1)
|
|
0.1
|
|
10.6
|
Un-allocated
corporate
|
(0.4)
|
|
-
|
|
-
|
|
(0.1)
|
|
0.4
|
|
(0.0)
|
Total
|
43.9
|
|
(3.7)
|
|
(2.5)
|
|
(3.7)
|
|
3.6
|
|
37.6
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 10C – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Six months ended
June 30, 2016
|
|
|
|
|
|
|
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
|
$31.6
|
|
($4.3)
|
|
($2.9)
|
|
$2.9
|
|
$3.7
|
|
$31.0
|
Equity
method
|
19.5
|
|
-
|
|
(0.9)
|
|
(0.1)
|
|
(4.7)
|
|
13.9
|
Total
|
51.2
|
|
(4.3)
|
|
(3.8)
|
|
2.8
|
|
(0.9)
|
|
44.9
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
15.6
|
|
-
|
|
-
|
|
-
|
|
(2.0)
|
|
13.6
|
Equity
method
|
6.4
|
|
-
|
|
-
|
|
-
|
|
0.5
|
|
6.9
|
Total
|
22.0
|
|
-
|
|
-
|
|
-
|
|
(1.4)
|
|
20.5
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
35.7
|
|
-
|
|
-
|
|
(0.6)
|
|
(4.6)
|
|
30.6
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
35.7
|
|
-
|
|
-
|
|
(0.6)
|
|
(4.6)
|
|
30.6
|
Total
consolidated
|
83.0
|
|
(4.3)
|
|
(2.9)
|
|
2.3
|
|
(2.9)
|
|
75.2
|
Total equity
method
|
25.9
|
|
-
|
|
(0.9)
|
|
(0.1)
|
|
(4.1)
|
|
20.8
|
Un-allocated
corporate
|
(0.2)
|
|
-
|
|
-
|
|
0.3
|
|
(0.1)
|
|
-
|
Total
|
108.7
|
|
(4.3)
|
|
(3.8)
|
|
2.5
|
|
(7.1)
|
|
96.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
Table 10D – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Six months ended
June 30, 2015
|
|
|
|
|
|
|
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)
|
|
(1.3)
|
|
(0.1)
|
|
(1.4)
|
|
16.7
|
Total
|
53.7
|
|
(2.5)
|
|
(5.0)
|
|
(4.2)
|
|
(0.7)
|
|
41.3
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
9.2
|
|
-
|
|
-
|
|
-
|
|
0.9
|
|
10.1
|
Equity
method
|
6.4
|
|
-
|
|
-
|
|
-
|
|
0.2
|
|
6.6
|
Total
|
15.6
|
|
-
|
|
-
|
|
-
|
|
1.1
|
|
16.7
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
35.3
|
|
(0.1)
|
|
(0.0)
|
|
(0.8)
|
|
2.3
|
|
36.7
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
35.4
|
|
(0.1)
|
|
(0.0)
|
|
(0.8)
|
|
2.3
|
|
36.7
|
Total
consolidated
|
77.2
|
|
(1.1)
|
|
(3.7)
|
|
(4.9)
|
|
4.0
|
|
71.4
|
Total equity
method
|
27.5
|
|
(1.5)
|
|
(1.3)
|
|
(0.1)
|
|
(1.3)
|
|
23.3
|
Un-allocated
corporate
|
(2.2)
|
|
-
|
|
-
|
|
(0.1)
|
|
2.2
|
|
-
|
Total
|
102.5
|
|
(2.6)
|
|
(5.0)
|
|
(5.1)
|
|
4.9
|
|
94.7
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
Table 11 –
Project Income by Project (for Selected
Projects)
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
Accounting
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
Cadillac
|
Consolidated
|
$0.9
|
$0.9
|
|
$1.6
|
$1.6
|
Curtis
Palmer
|
Consolidated
|
2.7
|
5.8
|
|
9.7
|
7.8
|
Morris
|
Consolidated
|
0.6
|
3.0
|
|
4.4
|
6.9
|
Piedmont
|
Consolidated
|
(3.3)
|
(0.5)
|
|
(8.3)
|
(4.8)
|
Kenilworth
|
Consolidated
|
(0.9)
|
(0.6)
|
|
(1.0)
|
0.4
|
Chambers
|
Equity
method
|
-
|
0.6
|
|
3.4
|
4.0
|
Orlando
|
Equity
method
|
9.9
|
7.6
|
|
16.5
|
12.0
|
Selkirk
|
Equity
method
|
(0.3)
|
(0.1)
|
|
(0.6)
|
0.1
|
Total
|
|
|
9.6
|
16.7
|
|
25.6
|
28.0
|
West
U.S.
|
|
|
|
|
|
|
|
Manchief
|
Consolidated
|
0.5
|
(7.8)
|
|
1.0
|
(6.8)
|
Naval
Station
|
Consolidated
|
1.9
|
1.6
|
|
.5
|
1.4
|
North
Island
|
Consolidated
|
1.6
|
1.4
|
|
1.2
|
1.5
|
Naval Training
Center
|
Consolidated
|
0.6
|
0.6
|
|
0.3
|
0.5
|
Oxnard
|
Consolidated
|
(0.4)
|
(0.4)
|
|
(2.1)
|
(1.9)
|
Frederickson
|
Equity
method
|
-
|
0.4
|
|
0.5
|
1.0
|
Koma
Kulshan
|
Equity
method
|
0.5
|
(0.1)
|
|
0.8
|
0.3
|
Total
|
|
|
4.6
|
(4.3)
|
|
2.3
|
(4.0)
|
Canada
|
|
|
|
|
|
|
|
Calstock
|
Consolidated
|
1.7
|
1.4
|
|
4.1
|
3.5
|
Kapuskasing
|
Consolidated
|
2.3
|
0.8
|
|
5.9
|
4.7
|
Mamquam
|
Consolidated
|
3.6
|
1.6
|
|
5.8
|
2.8
|
Nipigon
|
Consolidated
|
3.3
|
0.5
|
|
4.1
|
2.0
|
North Bay
|
Consolidated
|
2.7
|
1.1
|
|
6.8
|
5.1
|
Williams
Lake
|
Consolidated
|
(0.2)
|
(2.2)
|
|
2.8
|
(2.0)
|
Other (Tunis and
Moresby Lake)
|
Consolidated
|
(0.5)
|
(0.4)
|
|
(0.2)
|
(0.1)
|
Total
|
|
|
12.9
|
2.8
|
|
29.3
|
16.0
|
|
|
|
|
|
|
|
|
Totals
|
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
17.0
|
6.8
|
|
36.6
|
22.6
|
Equity method
projects
|
|
|
10.2
|
8.4
|
|
20.6
|
17.4
|
Un-allocated
corporate
|
|
|
(1.9)
|
2.0
|
|
(3.3)
|
(1.2)
|
Total Project
Income
|
|
|
25.2
|
17.2
|
|
53.9
|
38.8
|
|
|
|
|
|
|
|
|
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,
|
|
Accounting
|
|
2016
|
2015
|
|
2016
|
2015
|
East
U.S.
|
|
|
|
|
|
|
Cadillac
|
Consolidated
|
$2.3
|
$2.4
|
|
$4.4
|
$4.5
|
Curtis
Palmer
|
Consolidated
|
6.6
|
9.7
|
|
17.5
|
15.5
|
Morris
|
Consolidated
|
2.5
|
3.9
|
|
7.9
|
8.8
|
Piedmont
|
Consolidated
|
1.1
|
1.4
|
|
1.6
|
2.2
|
Kenilworth
|
Consolidated
|
(0.3)
|
0.0
|
|
0.2
|
1.6
|
Chambers
|
Equity
method
|
2.8
|
3.5
|
|
8.9
|
9.7
|
Orlando
|
Equity
method
|
6.2
|
6.2
|
|
11.2
|
11.3
|
Selkirk
|
Equity
method
|
(0.3)
|
(0.1)
|
|
(0.6)
|
0.1
|
Total
|
|
|
20.9
|
27.0
|
|
51.2
|
53.7
|
West
U.S.
|
|
|
|
|
|
|
|
Manchief
|
Consolidated
|
3.3
|
(5.1)
|
|
6.6
|
(1.4)
|
Naval
Station
|
Consolidated
|
3.4
|
3.2
|
|
3.7
|
4.6
|
North
Island
|
Consolidated
|
2.6
|
2.5
|
|
3.4
|
3.7
|
Naval Training
Center
|
Consolidated
|
1.4
|
1.4
|
|
1.9
|
2.1
|
Oxnard
|
Consolidated
|
0.7
|
0.6
|
|
0.1
|
0.2
|
Frederickson
|
Equity
method
|
2.5
|
2.9
|
|
5.5
|
6.0
|
Koma
Kulshan
|
Equity
method
|
0.6
|
0.1
|
|
0.9
|
0.4
|
Total
|
|
|
14.5
|
5.7
|
|
22.0
|
15.6
|
Canada
|
|
|
|
|
|
|
|
Calstock
|
Consolidated
|
2.3
|
2.0
|
|
5.1
|
4.7
|
Kapuskasing
|
Consolidated
|
(0.7)
|
0.4
|
|
3.1
|
4.4
|
Mamquam
|
Consolidated
|
4.0
|
2.0
|
|
6.7
|
3.6
|
Nipigon
|
Consolidated
|
3.8
|
4.0
|
|
9.6
|
9.8
|
North Bay
|
Consolidated
|
(0.2)
|
0.7
|
|
4.0
|
4.8
|
Williams
Lake
|
Consolidated
|
2.0
|
2.6
|
|
7.0
|
7.6
|
Other (Tunis and
Moresby Lake)
|
Consolidated
|
(0.2)
|
(0.1)
|
|
0.3
|
0.4
|
Total
|
|
|
10.9
|
11.6
|
|
35.7
|
35.4
|
|
|
|
|
|
|
|
|
Totals
|
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
34.5
|
31.6
|
|
83.0
|
77.2
|
Equity method
projects
|
|
|
11.8
|
12.7
|
|
25.9
|
27.5
|
Un-allocated
corporate
|
|
|
(0.1)
|
(0.4)
|
|
(0.2)
|
(2.2)
|
Total Project
Adjusted EBITDA
|
|
|
46.2
|
43.9
|
|
108.7
|
102.5
|
Other project
expense
|
|
|
(0.1)
|
(2.2)
|
|
0.1
|
(2.2)
|
Interest,
net
|
|
|
2.9
|
2.5
|
|
5.4
|
4.9
|
Depreciation
and amortization
|
|
|
30.4
|
33.3
|
|
60.3
|
66.1
|
Change in fair
value of derivative instruments
|
|
(12.2)
|
(6.9)
|
|
(11.0)
|
(5.1)
|
Project
income
|
|
|
25.2
|
17.2
|
|
53.9
|
38.8
|
Other income,
net
|
|
|
0.3
|
(1.7)
|
|
(2.2)
|
(3.1)
|
Foreign
exchange loss (gain)
|
|
|
2.6
|
4.8
|
|
22.5
|
(27.4)
|
Interest,
net
|
|
|
51.2
|
24.6
|
|
67.8
|
50.3
|
Administration
|
|
|
5.8
|
6.6
|
|
11.9
|
16.0
|
(Loss) from
continuing operations before income taxes
|
|
(34.7)
|
(17.1)
|
|
(46.1)
|
(3.1)
|
Income tax (benefit)
expense
|
|
|
(18.4)
|
2.9
|
|
(16.8)
|
(1.7)
|
Net (loss) income
from continuing operations
|
|
(16.3)
|
(20.0)
|
|
(29.3)
|
4.7
|
Net income from
discontinued operations, net of tax
|
|
-
|
33.6
|
|
-
|
21.1
|
Net (loss)
income
|
|
(16.3)
|
13.6
|
|
(29.3)
|
25.8
|
Net (loss)
attributable to noncontrolling interests
|
|
-
|
(3.4)
|
|
-
|
(11.0)
|
Net income
attributable to preferred share dividends of a
subsidiary company
|
|
2.2
|
2.3
|
|
4.2
|
4.6
|
Net (loss) income
attributable to Atlantic Power Corporation
|
|
($18.5)
|
$14.7
|
|
($33.5)
|
$32.2
|
|
|
|
|
|
|
|
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SOURCE Atlantic Power Corporation