DEDHAM, Mass., May 4, 2017 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today reported its financial results for the three
months ended March 31, 2017.
Net loss attributable to Atlantic Power Corporation of
$(2.7) million improved from a loss
of $(14.9) million in the 2016
period; higher depreciation expense at two plants in 2017 was more
than offset by a reduction in foreign exchange loss compared to a
year ago. Project Adjusted EBITDA increased to $63.8 million from $62.5
million in the year-ago period, reflecting higher margins at
three Ontario plants (as discussed
on page 2) and settlement of favorable fuel swaps at Orlando, partially offset by higher fuel
prices, a lower PJM capacity price and other factors at Morris;
lower water flows at Mamquam, and lower waste heat and a
contractual price adjustment at Calstock. Net loss and Project Adjusted
EBITDA did not include the benefit of the payments received in the
first quarter of 2017 under the OEFC settlement, as the settlement
was not finalized until April. Cash provided by operating
activities increased to $34.1 million
from $29.4 million in the 2016
period; the 2017 amount included the approximately US$8 million of cash received under the OEFC
settlement in the first quarter.
Recent Developments
- In April, achieved repricing of term loan and revolver,
reducing spread by 75 basis points and saving $2.4 million in 2017 and $17 million over life of facilities, net of
transaction costs
- Also in April, reached a settlement with Ontario Electricity
Financial Corporation (OEFC) for Cdn$36.1
million (US$26 million) of
additional revenues related to Global Adjustment dispute
First Quarter 2017 Financial Highlights
- Global Adjustment payments of Cdn$10.7
million received in Q1 2017 were recorded as deferred
revenues; benefited operating cash flow but not revenues, income or
Project Adjusted EBITDA
-
- Will be included in revenue and Project Adjusted EBITDA in Q2
2017
- Net loss of $(2.7) million in Q1
2017 vs. $(14.9) million in Q1
2016
- Project income of $25.3 million
in Q1 2017 vs. $28.7 million in Q1
2016
- Project Adjusted EBITDA of $63.8
million in Q1 2017 vs. $62.5
million in Q1 2016
- Cash provided by operating activities of $34.1 million in Q1 2017 vs. $29.4 million in Q1 2016
- Repaid $27.3 million of term loan
and project debt during Q1 2017; for full year 2017, expect to
repay a total of $150 million or
more
- Ended the quarter with liquidity of $214
million, including $66 million
of cash at the parent
Guidance
- Increased 2017 Project Adjusted EBITDA guidance to include OEFC
settlement (see page 5)
"We have continued to make progress in the two months since we
reported our previous quarterly results, by repricing our
$615 million term loan and revolving
credit facility and reaching a settlement with the OEFC regarding
the Global Adjustment dispute," said James
J. Moore, Jr., President and CEO of Atlantic Power.
"The repricing is expected to save $2.4
million in interest costs this year and $17 million over the remaining lives of the
facilities, net of transaction costs. The $26 million of Global Adjustment payments will
materially increase our cash at the parent of approximately
$66 million."
"During the first quarter, we repaid $27
million of term loan and project debt, and ended the quarter
with a leverage ratio of 5.4 times. Our plan to repay
$150 million or more of debt this
year puts us on a path to achieve a leverage ratio by year-end of
less than 4 times," Mr. Moore continued. "Our financial results for
the first quarter put us on track with our guidance for the year,
which we have revised to include the Global Adjustment payments
under the OEFC settlement."
Atlantic Power
Corporation
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Table 1 – Summary
of Financial 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
March 31,
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|
|
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2017
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2016
|
Financial
Highlights
|
|
|
|
|
|
Project
revenue
|
|
|
|
|
$98.4
|
$106.4
|
Project
income
|
|
|
|
|
25.3
|
28.7
|
Net loss attributable
to Atlantic Power Corporation
|
|
|
|
|
(2.7)
|
(14.9)
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Cash provided by
operating activities
|
|
|
|
|
34.1
|
29.4
|
Project Adjusted
EBITDA
|
|
|
|
|
63.8
|
62.5
|
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" on page 11 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
loss.
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Financial Results
Enhanced Dispatch Contracts
In the first quarter of 2017, the most significant positive
driver of results was the impact of changes to the operational and
contractual status of the Kapuskasing, North
Bay and Nipigon plants in
Ontario and the expiration of an
above-market gas supply contract for Kapuskasing and North Bay. As previously
reported, these plants are now under enhanced dispatch contracts
through December 2017 for
Kapuskasing and North Bay and through October 2018 for Nipigon. The contracts
provide a fixed monthly payment but do not require the plants to
generate power, so they were put in a non-operational state earlier
this year, which has resulted in operating and fuel cost
savings. Although revenues from the three plants were
$5.9 million lower in the first
quarter of 2017 than in the comparable year-ago period, fuel
expenses were also lower. Kapuskasing and North Bay had an $11.0
million reduction in fuel expense compared to the first
quarter a year ago, when they were purchasing gas under an
above-market contract that expired at year-end 2016.
The Company has accelerated depreciation at Kapuskasing and North Bay through year-end 2017, when it will
have fully depreciated both plants consistent with the expiration
date of the enhanced dispatch contracts. The increased
depreciation associated with these plants in the first quarter of
2017 was $4.1 million.
OEFC Settlement
On April 27, 2017, the Company
reached a settlement with the OEFC regarding the interpretation of
the price escalator provision (the "Global Adjustment") for power
sold to the OEFC under the Power Purchase Agreements (PPAs) for the
Kapuskasing, North Bay and Tunis plants. Under the settlement, the
OEFC agreed to pay the Company a total of Cdn$36.1 million. The Company received
Cdn$10.7 million of this amount in
the first quarter of 2017, consisting of Cdn$8.4 million for power sold by Kapuskasing and North Bay in 2016 and Cdn$2.3 million for Kapuskasing and North Bay under the enhanced dispatch
contracts for the first quarter of 2017. In early
May 2017, the Company received
another Cdn$20.3 million,
representing amounts for power sold by the three plants in
April 2013 through year-end
2015. The remaining Cdn$5.1
million will be recorded as earned over the balance of
2017.
The Cdn$10.7 million received in
the first quarter of 2017 was recorded as deferred revenue and is
included as a current liability on the Company's balance sheet as
of March 31, 2017. Because it
was deferred, it did not benefit net income or Project Adjusted
EBITDA for the quarter. However, it is included in Cash
provided by operating activities. The Company expects to
reverse the deferral and include all amounts collected under the
settlement for this contingent gain in revenues in the second
quarter of 2017.
Three Months Ended March 31,
2017
Net loss attributable to Atlantic Power
Corporation for the first quarter of 2017 was $(2.7) million as compared to $(14.9) million in the first quarter of
2016. Lower revenues of $8.0
million (primarily related to the enhanced dispatch
contracts) and increased depreciation of $4.7 million were partially offset by a
$10.0 million reduction in fuel
expense. Foreign exchange loss (mostly unrealized) decreased
to $2.5 million in the first quarter
of 2017 from $19.8 million in the
first quarter of 2016.
Project income for the first quarter of 2017 was
$25.3 million, a reduction of
$3.4 million from $28.7 million in the year-ago period. The
reduction was primarily attributable to accelerated depreciation
expense and a slight reduction in the equity in earnings of
unconsolidated affiliates.
Project Adjusted EBITDA for the first quarter of
2017 was $63.8 million, an increase
of $1.3 million from $62.5 million in the year-ago period.
Primary drivers were Kapuskasing
(+$3.7 million) and North Bay
(+$3.1 million) due to the favorable impact on margins of the
enhanced dispatch contracts and the expiration of an above-market
gas contract, and Orlando due to
settlement of favorable fuel swaps (+$2.1 million). These
positive variances were partially offset by Morris (-$4.6 million), due to higher fuel prices and
lower fuel optimization, the non-recurrence of a return on a
construction project in the year-ago period, and a lower PJM
capacity price; Mamquam (-$1.8
million), due to lower water flows compared to a record year
in 2016, and Calstock
(-$1.4 million), due to lower waste
heat and a contractual price adjustment in April 2016. There
was a modest non-cash translation benefit on EBITDA from the
appreciation of the Canadian dollar relative to the year-ago
period.
Cash provided by operating activities of
$34.1 million increased $4.7 million from the $29.4 million a year ago. The 2017 period
included approximately $8 million of
cash (recorded as deferred revenues) collected under the OEFC
settlement. In addition, Kapuskasing, North
Bay and Nipigon experienced
a $6.6 million increase in gross
margin because of the revised contractual, operating and fuel
supply arrangements as previously discussed. These positive
factors were partially offset by a $4.6
million reduction at Morris, because of factors previously
discussed; a $2.9 million increase in
cash interest payments due to a higher balance and a higher spread
on the term loan (issued in April
2016) as compared to the first quarter of 2016, and a
$1.8 million decrease at Mamquam due
to lower water flows.
Significant uses of cash provided by operating activities during
the first quarter of 2017 included $25.0
million of term loan amortization, $2.3 million of project debt amortization and
$2.1 million of preferred dividend
payments. These figures were comparable to the year-ago
period, when the Company also used $16.3
million of cash to make discretionary purchases of its
convertible debentures.
Liquidity and Balance Sheet
Liquidity
As shown in Table 2, the Company's liquidity at March 31, 2017 was $214.0
million, an increase of approximately $10 million from the December 31, 2016 level. The increase was
attributable to a $5.9 million
increase in unrestricted cash and a $4.0
million increase in borrowing capacity resulting from a
reduction in letters of credit outstanding. The unrestricted
cash of $91.5 million includes
$65.6 million at the parent, of which
the Company considers approximately $56
million to be discretionary cash available for general
corporate purposes.
Atlantic Power
Corporation
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Table 2 –
Liquidity (in millions of U.S. dollars)
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Unaudited
|
|
|
|
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March
31,
2017
|
December
31,
2016
|
Revolver
capacity
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|
$200.0
|
$200.0
|
Letters of credit
outstanding
|
|
(77.5)
|
(81.5)
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Unused borrowing
capacity
|
|
122.5
|
118.5
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Unrestricted
cash
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|
91.5
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85.6
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Total
Liquidity
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$214.0
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$204.1
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Note: Liquidity
numbers presented do not include restricted cash of $10.0 million
at March 31, 2017 and $13.3 million at December 31,
2016.
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Balance Sheet
Debt Repayment
During the first quarter of 2017, the Company repaid
$25.0 million of the APLP Holdings
term loan and amortized $2.3 million
of project-level debt. There were no redemptions or
repurchases of convertible debentures during the
quarter. At March 31,
2017, the Company's consolidated debt was $971 million, excluding unamortized discounts and
deferred financing costs. The Company's consolidated leverage
ratio (consolidated gross debt to trailing 12-month consolidated
Adjusted EBITDA) was 5.4 times at March
31, 2017.
The Company expects to repay approximately $150 million or more of debt in 2017, including
$100 million of its APLP Holdings
term loan and $11.8 million of
project-level debt. In addition, the Company plans to
allocate $40 million or more of its
discretionary cash to additional debt reduction (which could
include convertible debentures, further repayment of term loan and
repayment of Piedmont project
debt).
Debt Maturity Profile
The Company has no bullet maturities in 2017. In 2018, the
Company has a project debt maturity at Piedmont totaling $54
million at the maturity date in August 2018. The
remaining $42.5 million of Series C
convertible debentures mature in June
2019 and are callable at par in June 2017. The
$60.9 million (U.S. dollar
equivalent) of Series D convertible debentures mature in
December 2019 and are callable at par
in December 2017. The Company's revolving credit facility has
a 2021 maturity and the APLP Holdings term loan has a 2023 maturity
(though is expected to be more than 80% repaid by the maturity
date).
Repricing of Term Loan and Revolver
On April 17, 2017, the Company
executed a repricing of the APLP Holdings term loan and revolving
credit facility. The interest rate margin on the term loan
and revolver were reduced by 75 basis points to LIBOR plus 425
basis points. The LIBOR floor remains at 1.00%. The
mandatory 1% annual amortization and cash sweep provisions of the
loan were unchanged. As a result of the repricing, the
Company expects to realize interest cost savings for the remainder
of 2017 of $2.4 million, net of
transaction fees that will be recorded in the second quarter.
Cumulative savings through the maturity dates of the term loan and
revolver are estimated to be approximately $17 million, net of transaction fees. The
Company is permitted to prepay the term loan in the first six
months following the transaction at a 1% premium. Following
the six-month period, prepayment is permitted at
par.
Normal Course Issuer Bid (NCIB) Update
The Company put in place a new normal course issuer bid ("NCIB")
on December 29, 2016. Details
of this program can be found in the Company's December 20, 2016 press release. The
Company has repurchased less than $100,000 of convertible debentures and no common
shares under this NCIB. As reported in the
Company's fourth quarter and year-end 2016 financial results press
release, the Company repurchased $18.8
million principal amount of convertible debentures and
slightly less than 8.1 million common shares under the previous
NCIB that expired on December 28,
2016.
Other Financial Updates
PPA Expirations and Negotiations
The Company has PPAs or other contractual arrangements scheduled
to expire for nine of its projects in the next five years.
Together these represent 25% of the Company's capacity and 30% of
2016 Project Adjusted EBITDA. The Company continues to work
toward extensions of existing PPAs or new agreements or
arrangements for certain of the Ontario, San
Diego, Williams Lake and
other projects for which the PPAs expire during this
period.
Optimization Investments
The Company made approximately $3.4
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, all of which were completed in 2016. The
Company expects to complete the upgrade of the third combustion
turbine at Morris during an outage in the spring of this
year. Although the Company will continue to evaluate the
potential for additional such investments, they are expected to be
relatively modest. The Company has begun an evaluation of its
operations and maintenance costs and expects that to be a major
focus in 2017.
The Company realized a cash flow benefit of approximately
$8 million in 2016 from optimization
investments made in 2013 through 2016 totaling approximately
$25 million. The Company
expects to realize a cash flow benefit of approximately
$12 million in 2017 from these
investments and those made in 2017, assuming average water
conditions.
Maintenance and Capex
For 2017, including its share of equity-owned projects, the
Company expects to incur maintenance expenses of approximately
$45 million (in line with the 2016
level), which includes an estimate of the cost to prepare
Tunis for a return to service in
2018 under the new PPA. Approximately $5.3 million was incurred in the first quarter of
2017. The Company's estimate of capital expenditures for 2017
is between $5 and $6 million
(slightly lower than the 2016 level), which includes the upgrade of
the third and final combustion turbine at Morris and several
smaller projects. Approximately $1.4
million was incurred in the first quarter of 2017.
Revised 2017 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 has increased its guidance for 2017 Project Adjusted
EBITDA to a range of $250 to $265
million from a range of $225 to $240
million to include the Global Adjustment revenues expected
under the OEFC settlement, estimated to be approximately
US$26 million in 2017.
Table 3 provides a bridge of the Company's 2017 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
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Table 3 – Bridge
of 2017 Project Adjusted EBITDA Guidance to Cash Provided by
Operating Activities
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(in millions of
U.S. dollars)
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Unaudited
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Current
|
Previous
|
|
(5/4/17)
|
(3/2/17)
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2017 Project
Adjusted EBITDA Guidance
|
$250 -
$265
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$225 -
$240
|
Adjustment for equity
method projects(1)
|
(1)
|
(1)
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Corporate G&A
expense
|
(22)
|
(22)
|
Cash interest
payments
|
(67)
|
(67)
|
Cash taxes
|
(4)
|
(4)
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Other
|
-
|
-
|
Cash provided by
operating activities
|
$155 -
$170
|
$130 -
$145
|
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) For
equity method projects, represents difference between Project
Adjusted EBITDA and cash distribution from equity method
projects.
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Supplementary Information Regarding Non-GAAP
Disclosures
A discussion of non-GAAP disclosures and schedules reconciling
Project Adjusted EBITDA, a non-GAAP measure, to the comparable GAAP
measure, can be found on page 11 of this release.
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call on Friday, May 5,
2017 at 8:30 AM ET.
Management's prepared remarks and an accompanying presentation will
be available on the Conference Calls page of the Company's website
prior to the call.
Conference Call / Webcast Information:
Date: Friday, May 5,
2017
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
10104126 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 June
5, 2017 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 twenty-three
power generation assets across nine states in the United States and two provinces in
Canada. The Company's power generation projects sell
electricity to utilities and other large commercial customers
largely under long-term PPAs, which seek to minimize exposure to
changes in commodity prices. The aggregate gross electric
generation capacity of this portfolio is approximately 2,138
megawatts (MW), and the Company's aggregate net ownership interest
is approximately 1,500 MW. Nineteen of the projects are
currently operational, totaling 1,975 MW on a gross capacity basis
and 1,337 MW on a net ownership basis. The remaining four
projects, all in Ontario, are not
operational, three due to revised contractual arrangements with the
offtaker and the other, Tunis, has
a forward-starting 15-year contractual agreement that will commence
between November 2017 and June
2019.
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's estimation that the repricing of its term loan
and revolver will yield approximately $2.4
million of interest cost savings in 2017 and $17 million over the remaining lives of the
facilities, net of transaction fees;
- the Company's expectation that it will receive another
Cdn$5.1 million of Global Adjustment
revenues under the OEFC settlement over the remainder of 2017;
- the Company's expectation that it will repay $150 million or more of debt in 2017, including
$100 million of its term loan and
$11.8 million of project-level
debt;
- the Company's estimate of discretionary cash ($56 million) and its plans to allocate
approximately $40 million or more to
discretionary debt repayment in 2017;
- the Company's expectation that it will repay more than 80% of
its term loan by the maturity date in 2023;
- the Company's expectation that it will realize a cash flow
benefit of approximately $12 million
in 2017 from discretionary investments made in 2013 through 2016
totaling approximately $25
million;
- the Company's expectation that it will complete the upgrade of
the third combustion turbine at Morris during an outage in the
spring of this year;
- the Company's expectation that evaluation of its operations and
maintenance costs will be a major focus in 2017;
- the Company's expectation that in 2017, including its share of
equity-owned projects, capital expenditures will total
approximately $5 to $6 million and
maintenance expense will total approximately $45 million;
- the Company's estimation that 2017 Project Adjusted EBITDA will
be in the range of $250 to $265
million;
- the Company's estimation that 2017 cash flows provided by
operating activities will be in the range of $155 to $170 million, assuming for this purpose
that working capital changes are nil; 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 strategy to increase the intrinsic value of the
Company on a per-share basis through disciplined management of its
balance sheet and cost structure and investment of its
discretionary cash in a combination of organic and external growth
projects, acquisitions, and repurchases of debt and equity
securities; the Company's ability to enter into new PPAs on
favorable terms or at all after the expiration of existing
agreements, 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 4 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
|
Unaudited
|
|
|
|
March
31,
|
December
31,
|
|
2017
|
2016
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$91.5
|
$85.6
|
Restricted
cash
|
10.0
|
13.3
|
Accounts
receivable
|
37.1
|
37.3
|
Current
portion of derivative instruments asset
|
3.7
|
4.0
|
Inventory
|
16.2
|
16.0
|
Prepayments
|
9.8
|
5.9
|
Other current
assets
|
2.6
|
2.8
|
Total current
assets
|
170.9
|
164.9
|
|
|
|
Property, plant and
equipment, net
|
717.0
|
733.2
|
Equity investments in
unconsolidated affiliates
|
272.2
|
266.8
|
Power purchase
agreements and intangible assets, net
|
236.6
|
246.2
|
Goodwill
|
36.0
|
36.0
|
Derivative
instruments asset
|
4.1
|
4.6
|
Other
assets
|
4.7
|
5.1
|
Total
assets
|
$1,441.5
|
$1,456.8
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$4.7
|
$4.5
|
Accrued
interest
|
4.3
|
0.7
|
Other accrued
liabilities
|
20.6
|
24.4
|
Current
portion of long-term debt
|
109.4
|
111.9
|
Current
portion of derivative instruments liability
|
6.0
|
7.6
|
Other current
liabilities
|
9.7
|
1.8
|
Total current
liabilities
|
154.7
|
150.9
|
|
|
|
Long-term debt
(1)
|
728.3
|
749.2
|
Convertible
debentures (2)
|
101.1
|
100.4
|
Derivative
instruments liability
|
23.4
|
21.3
|
Deferred income
taxes
|
67.3
|
68.3
|
Power purchase and
fuel supply agreement liabilities, net
|
24.9
|
25.3
|
Other long-term
liabilities
|
56.0
|
55.5
|
Total
liabilities
|
$1,155.7
|
$1,170.9
|
|
|
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 115,229,497 and 114,649,888
issued and outstanding at March 31, 2017 and December 31, 2016,
respectively
|
1,273.4
|
1,272.9
|
Accumulated other
comprehensive loss
|
(146.4)
|
(148.5)
|
Retained
deficit
|
(1,062.5)
|
(1,059.8)
|
Total Atlantic Power
Corporation shareholders' equity
|
64.5
|
64.6
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Total
equity
|
285.8
|
285.9
|
Total liabilities and
equity
|
$1,441.5
|
$1,456.8
|
(1) Net of
unamortized discount and deferred financing costs
(2) Net of
unamortized deferred financing costs
|
|
|
Atlantic Power
Corporation
|
Table 5 –
Consolidated Statements of Operations
|
(in millions of
U.S. dollars, except per share amounts)
|
Unaudited
|
|
|
Three months
ended
|
|
March
31,
|
|
2017
|
2016
|
Project
revenue:
|
|
|
Energy
sales
|
$37.1
|
$52.5
|
Energy
capacity revenue
|
19.5
|
31.9
|
Other
|
41.8
|
22.0
|
|
98.4
|
106.4
|
Project
expenses:
|
|
|
Fuel
|
28.9
|
38.9
|
Operations and
maintenance
|
20.4
|
21.2
|
Depreciation
and amortization
|
29.5
|
24.8
|
|
78.8
|
84.9
|
Project other income
(expense):
|
|
|
Change in fair
value of derivative instruments
|
(1.2)
|
(1.2)
|
Equity in
earnings of unconsolidated affiliates
|
9.0
|
10.7
|
Interest
expense, net
|
(2.2)
|
(2.1)
|
Other income
(expense), net
|
0.1
|
(0.2)
|
|
5.7
|
7.2
|
Project
income
|
25.3
|
28.7
|
Administrative and
other expenses:
|
|
|
Administration
|
6.4
|
6.1
|
Interest
expense, net
|
17.3
|
16.6
|
Foreign
exchange loss
|
2.5
|
19.8
|
Other income,
net
|
-
|
(2.5)
|
|
26.2
|
40.0
|
Loss from operations
before income taxes
|
(0.9)
|
(11.3)
|
Income tax (benefit)
expense
|
(0.3)
|
1.6
|
Net loss
|
(0.6)
|
(12.9)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
2.1
|
2.0
|
Net loss attributable
to Atlantic Power Corporation
|
($2.7)
|
($14.9)
|
Net loss per share
attributable to Atlantic Power Corporation shareholders:
|
|
|
Basic
|
($0.02)
|
($0.12)
|
Diluted
|
(0.02)
|
(0.12)
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
114.8
|
121.9
|
Diluted
|
114.8
|
121.9
|
Atlantic Power
Corporation
|
Table 6 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
2017
|
2016
|
Cash provided by
operating activities:
|
|
|
|
|
Net loss
|
|
|
($0.6)
|
($12.9)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
|
29.5
|
24.8
|
Loss on sale of
assets
|
|
|
-
|
0.2
|
Gain on purchase and
cancellation of convertible debentures
|
|
|
-
|
(2.5)
|
Stock-based
compensation expense
|
|
|
0.4
|
0.6
|
Equity in earnings
from unconsolidated affiliates
|
|
|
(9.0)
|
(10.7)
|
Distributions from
unconsolidated affiliates
|
|
|
3.7
|
4.3
|
Unrealized foreign
exchange loss
|
|
|
2.5
|
20.1
|
Change in fair value
of derivative instruments
|
|
|
1.2
|
1.2
|
Change in deferred
income taxes
|
|
|
(1.2)
|
0.1
|
Change in other
operating balances
|
|
|
|
|
Accounts
receivable
|
|
|
0.2
|
(0.5)
|
Inventory
|
|
|
(0.1)
|
2.8
|
Prepayments and other
assets
|
|
|
(0.5)
|
(10.4)
|
Accounts
payable
|
|
|
(0.4)
|
1.4
|
Accruals and other
liabilities
|
|
|
8.4
|
10.9
|
Cash provided by
operating activities
|
|
|
34.1
|
29.4
|
|
|
|
|
|
Cash provided by
investing activities:
|
|
|
|
|
Change in restricted
cash
|
|
|
3.3
|
5.2
|
Reimbursement of costs
for third-party construction project
|
|
|
-
|
4.7
|
Purchase of property,
plant and equipment
|
|
|
(2.0)
|
(0.7)
|
Cash provided by
investing activities
|
|
|
1.3
|
9.2
|
|
|
|
|
|
Cash used in
financing activities:
|
|
|
|
|
Common share
repurchases
|
|
|
-
|
(0.9)
|
Repayment of corporate
and project-level debt
|
|
|
(27.4)
|
(27.5)
|
Repayment of
convertible debentures
|
|
|
-
|
(16.3)
|
Dividends paid to
preferred shareholders
|
|
|
(2.2)
|
(2.0)
|
Cash used in
financing activities
|
|
|
(29.5)
|
(46.7)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
5.9
|
(8.1)
|
Cash and cash
equivalents at beginning of period
|
|
|
85.6
|
72.4
|
Cash and cash
equivalents at end of period
|
|
|
$91.5
|
$64.3
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Interest
paid
|
|
|
$13.1
|
$10.2
|
Income taxes paid,
net
|
|
|
$0.9
|
$0.9
|
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, 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 loss on a consolidated basis is provided in Table 7
below.
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. A bridge of Project Adjusted EBITDA to
Cash Distributions from Projects can be found in the first quarter
2017 presentation on the Company's website.
Project income (loss) and Project Adjusted EBITDA by project
also can be found in the first quarter 2017 presentation on the
Company's website.
Atlantic Power
Corporation
|
Table 7 –
Reconciliation of Net loss to Project Adjusted
EBITDA
|
(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
March 31
|
|
|
|
|
2017
|
2016
|
Net loss
attributable to Atlantic Power Corporation
|
|
|
|
($2.7)
|
($14.9)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
2.1
|
2.0
|
Net loss from
operations
|
|
|
|
($0.6)
|
($12.9)
|
Income tax (benefit)
expense
|
|
|
|
(0.3)
|
1.6
|
Loss from operations
before income taxes
|
|
|
|
(0.9)
|
(11.3)
|
Administration
|
|
|
|
6.4
|
6.1
|
Interest expense,
net
|
|
|
|
17.3
|
16.6
|
Foreign exchange
loss
|
|
|
|
2.5
|
19.8
|
Other income,
net
|
|
|
|
-
|
(2.5)
|
Project
income
|
|
|
|
$25.3
|
$28.7
|
|
|
|
|
|
|
Reconciliation to
Project Adjusted EBITDA
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
$34.9
|
$29.9
|
Interest expense,
net
|
|
|
|
2.4
|
2.5
|
Change in the fair
value of derivative instruments
|
|
|
|
1.2
|
1.2
|
Other
expense
|
|
|
|
-
|
0.2
|
Project Adjusted
EBITDA
|
|
|
|
$63.8
|
$62.5
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-first-quarter-2017-results-300452021.html
SOURCE Atlantic Power Corporation