OAKVILLE, ON, March 4, 2021 /PRNewswire/ - Algonquin Power
& Utilities Corp. (TSX: AQN) (NYSE: AQN) ("AQN" or the
"Company") today announced financial results for the fourth quarter
and year-ended December 31, 2020. All
amounts are shown in United States
dollars ("U.S. $" or "$"), unless otherwise noted.
"We are pleased to report solid fourth quarter and full year
2020 results, which, despite the year's challenges due to the
COVID-19 pandemic, reflect year-over-year growth in all of our key
financial metrics and several exciting new growth initiatives,"
said Arun Banskota, President and
Chief Executive Officer of AQN. "We remain confident that our
robust $9.4 billion capital
expenditure plan from 2021 through 2025 will continue to drive
further growth in earnings and cash flows."
Fourth Quarter and Full Year Financial Highlights
- Annual revenues of $1,677.1
million, an increase of 3%;
- Annual Adjusted EBITDA1 of $869.5 million, an increase of 4%;
- Annual Adjusted Net Earnings1 of $365.8 million, an increase of 14%;
- Annual Adjusted Net Earnings1 per share of
$0.64, an increase of 2%;
- Fourth quarter revenues of $492.4
million, an increase of 12%;
- Fourth quarter Adjusted EBITDA1 of $253.1 million, an increase of 10%;
- Fourth quarter Adjusted Net Earnings1 of
$127.0 million, an increase of 23%;
and,
- Fourth quarter Adjusted Net Earnings1 per share
of $0.21, an increase of 5%, in each
case on a year-over-year basis.
Key Financial Information
All amounts in
U.S. $ millions except per share
information
|
Three months ended
December
31
|
Twelve months
ended
December 31
|
2020
|
2019
|
Change
|
2020
|
2019
|
Change
|
Revenue
|
$
|
492.4
|
440.0
|
12%
|
1,677.1
|
1,626.4
|
3%
|
Net earnings
attributable to shareholders
|
504.2
|
172.1
|
193%
|
782.5
|
530.9
|
47%
|
Per
share
|
0.84
|
0.34
|
147%
|
1.38
|
1.05
|
31%
|
Cash provided by
operating activities
|
174.0
|
167.5
|
4%
|
505.2
|
611.3
|
(17)%
|
Adjusted Net
Earnings1
|
127.0
|
103.6
|
23%
|
365.8
|
321.3
|
14%
|
Per
share
|
0.21
|
0.20
|
5%
|
0.64
|
0.63
|
2%
|
Adjusted
EBITDA1
|
253.1
|
230.4
|
10%
|
869.5
|
838.6
|
4%
|
Adjusted Funds from
Operations1
|
179.3
|
144.1
|
24%
|
600.2
|
566.2
|
6%
|
Dividends per
share
|
0.1551
|
0.1410
|
10%
|
0.6063
|
0.5512
|
10%
|
1.
|
Please refer to
"Non-GAAP Financial Measures" at the end of this document for
further details
|
2020 Growth Highlights
- Surpasses Milestone of Over One Million Customer
Connections - During the fourth quarter of 2020, the
Company announced the completion of two new regulated utility
acquisitions. Empresa de Servicios Sanitarios de Los Lagos S.A.
("ESSAL") is a vertically integrated, regional water and wastewater
provider with approximately 239,000 customer connections in
Southern Chile, of which AQN
initially acquired approximately 94% of outstanding shares, and
currently indirectly owns approximately 64% of the outstanding
shares. Also during the fourth quarter, the Company successfully
completed its acquisition of Ascendant Group Limited, which,
through its major subsidiary, Bermuda Electric Light Company
Limited (BELCO), is the sole electric utility in Bermuda, providing regulated electrical
generation, transmission and distribution services to approximately
36,000 customer connections. With the completion of these two
acquisitions, AQN's Regulated Services Group has expanded and
diversified its geographical footprint into new high quality
jurisdictions, and now serves more than one million customer
connections.
- C&I Customers Strategy Proving Out - Over the
course of 2020, the Company announced several partnerships with
C&I customers to green their fleets and help them achieve their
corporate targets for cleaner energy, including a framework
agreement with Chevron for the potential development of over 500 MW
of renewable energy facilities. AQN has successfully partnered with
other developers on early-stage projects, leveraging its expertise
in financing, development and construction to advance these
projects to commercial operation. Facilities either announced or
that reached full or partial commercial operations in 2020 with
C&I energy buyers include Maverick Creek Wind, Altavista
Solar1 and Carvers Creek Solar.
- Largest Construction Program in Company History -
AQN had approximately 1,600 MW of renewable energy projects under
construction in 2020 between the Renewable Energy Group and
Regulated Services Group. This was the largest construction program
in the Company's history and the new projects are expected to
approximately double AQN's renewables portfolio. Of this 1,600 MW,
Great Bay Solar, Sugar Creek Wind and North Fork Ridge Wind
achieved full commercial operations ("COD") in 2020. Maverick Creek
Wind, Altavista Solar1, Neosho Ridge Wind and Kings
Point Wind are on track to achieve COD in the first half of
2021.
- Acquisition of Majority Interest in Coastal Wind
Portfolio - On November 20,
2020, the Renewable Energy Group entered into an agreement
to acquire a 51% interest in a portfolio of four wind facilities
(the "Texas Coastal Wind Facilities"). The Texas Coastal Wind
Facilities, located in the coastal region of south Texas, are expected to have an aggregate
capacity of 861 MW. Three wind facilities (Stella, Cranell and East
Raymond), representing 621 MW of the total portfolio, have already
achieved COD, with the fourth wind facility (West Raymond) expected
to achieve COD in March 2021. The
acquisitions of the three completed wind facilities have closed,
with the acquisition of the West Raymond Wind Facility expected to
close after achieving COD.
_______________________________
|
1 Power
Purchase Agreement with Facebook.
|
2020 Operational Excellence Highlights
- COVID-19 Response Demonstrates Continued Resiliency and
Cost Containment Strategies - The Company
has demonstrated ongoing resiliency throughout the COVID-19
pandemic. Delivery of essential services has remained
uninterrupted, with the health, safety and well-being of employees,
customers and communities in which the Company operates a top
priority. The decreased customer demand impacted AQN's 2020
Adjusted Net EPS by $0.02. In
response to COVID-19 as well as the unfavorable weather variance
experienced in the first quarter of 2020, AQN implemented cost
containment strategies that achieved approximately $24.0 million in savings for the year without
impacting customer safety and reliability.
- Integration of New Brunswick Gas and St. Lawrence
Gas - 2020 marked the first full year of contribution from
New Brunswick Gas and St. Lawrence Gas to the Company's utility
portfolio, with both utilities being successfully integrated into
AQN's operations over the course of 2020.
2020 Sustainability Highlights
- Update on Enhanced ESG Reporting Goals - In
the fourth quarter of 2020, the Company released its 2020
Sustainability Report with enhanced ESG disclosure to provide
transparency and a higher level of detail around priority ESG
issues for the Company's stakeholders. During the quarter, the
Company also released its first ever climate assessment report in
response to guidelines established by the Financial Stability
Board's Task Force on Climate-Related Financial Disclosures.
- Issuance of Green Senior Unsecured Notes - On
September 23, 2020, the Regulated
Services Group, through its affiliate Liberty Utilities Finance
GP1, completed an inaugural offering into the U.S. 144A market with
the issuance of $600 million of green
senior unsecured notes bearing interest at 2.05% and having a
maturity date of September 15, 2030.
The net proceeds from the offering are being used to finance or
refinance wind energy projects and other eligible green
investments.
- Closure of Asbury 200 MW Coal Plant - In
March 2020, the Regulated Services
Group decommissioned the Company's last owned and operated coal
plant, which is expected to reduce annual CO2 emissions by 905,000
metric tons. To replace this generation capacity, the Company
undertook the build out of 600 MW of three new wind generation
assets in the U.S. Midwest, of which approximately 150 MW (North
Fork Ridge) achieved COD in 2020, with approximately 450 MW (Neosho
Ridge and Kings Point) anticipated
to achieve COD in the first half of 2021.
Subsequent Event
Midwest Extreme Weather Event
In February 2021, the Company's
operations were impacted by extreme winter storm conditions
experienced in Texas and parts of
the central U.S. (the "Midwest Extreme Weather Event").
Despite the extreme weather conditions, the Regulated Services
Group's mid-west electric and gas operations performed well through
the extreme conditions delivering new system peaks. In line with
other Southwest Power Pool utilities, limited and short lived load
shedding was required to meet broader system requirements. The
Company incurred incremental commodity costs during a period of
record pricing and elevated consumption. The incremental commodity
costs incurred by the Company are expected to be substantially
recovered from customers over a timeframe to be agreed with its
regulators. However, the Company expects it will have sufficient
liquidity to fund these costs in the interim.
The Midwest Extreme Weather Event caused ice and freezing
conditions, which restricted electricity production at certain of
the Renewable Energy Group's Texas-based wind facilities. The Company
operates two facilities in Texas:
the Senate Wind Facility in north-east Texas and the Maverick Creek Wind Facility in
central Texas. The Company also
has a 51% interest in the Stella, Cranell and East Raymond Texas
Coastal Wind Facilities.
The most significantly impacted facility was the Senate Wind
Facility, which has a financial hedge in place that imposes an
obligation to deliver energy. Due to icing, the facility was unable
to produce the required energy to satisfy the quantities required
to be delivered under the hedge, and was required to settle in the
market at elevated pricing. The impacts to the Company's other
Texas wind facilities were
marginal. The Maverick Creek Wind Facility has two unit-contingent
power purchase agreements and as a result was not negatively
subjected to the elevated market pricing. The Texas Coastal Wind
Facilities experienced marginal impacts of the weather in
aggregate.
The Company continues to assess the aggregate net impact of
these unusual weather conditions on its business, operations,
results and financial performance, with the ultimate impact being
affected by a number of factors, including any government,
regulatory or system operator action, and the outcomes of
applicable disputes or proceedings. Based on available information,
the unfavorable financial impact of the Midwest Extreme Weather
Event on the Company's 2021 consolidated operating income is
currently estimated to be between $45
million and $55 million, prior
to potential mitigating factors.
Outlook
- Estimated 2021 Adjusted Net Earnings Per Share -
The Company estimates that its Adjusted Net Earnings per share will
be within a range of $0.71-$0.76 for the
2021 fiscal year (see "Non-GAAP Financial Measures"). This Adjusted
Net Earnings per share estimate does not include the impacts on the
Senate Wind Facility associated with the market disruption related
to the Midwest Extreme Weather Event, which is estimated to
negatively impact the Company's 2021 basic net earnings per share
by approximately $0.06 before any
potential recoveries. The Company views the financial impacts of
the Midwest Extreme Weather Event on the Senate Wind Facility as
unusual and not indicative of the on-going operating performance of
such facility or the Company. These estimates are based on, and
should be read in conjunction with, the assumptions set out under
"Outlook – Estimated 2021 Adjusted Net Earnings Per Share" and
"Forward-Looking Statements and Forward-Looking Information" in
AQN's Management Discussion & Analysis for the three and twelve
months ended December 31, 2020 (the
"Annual MD&A"), which will be available on SEDAR and EDGAR.
Please also refer to "Caution Regarding Forward-Looking
Information" and "Non-GAAP Financial Measures" at the end of this
document.
- Identified $9.4 Billion
Pipeline - At its annual Analyst and Investor Day on
December 14, 2020, the Company
provided an update on its $9.4
billion capital expenditure plan from 2021 through the end
of 2025. Approximately 70% of the capital plan is expected to be
invested by the Regulated Services Group and approximately 30% is
expected to be invested by the Renewable Energy Group.
AQN will file its Annual Consolidated Financial Statements,
Annual MD&A and Annual Information Form, each for the year
ended December 31, 2020, with the
applicable Canadian securities regulatory authorities. AQN will
also file its Form 40-F for the year ended December 31, 2020 with the U.S. Securities and
Exchange Commission. Copies of these documents and other
supplemental information on AQN is made available on its web site
at www.AlgonquinPowerandUtilities.com and in its corporate
filings on SEDAR at www.sedar.com (for Canadian filings) and EDGAR
at www.sec.gov (for U.S. filings). A hard copy of AQN's Annual
Consolidated Financial Statements for the year ended December 31, 2020 can be obtained free of charge
upon request to InvestorRelations@APUCorp.com.
Earnings Conference Call
AQN will hold an earnings conference call at 10:00 a.m. eastern time on Friday, March 5, 2021
hosted by President and Chief Executive Officer, Arun Banskota and Chief Financial Officer,
Arthur Kacprzak.
Date:
|
Friday, March 5,
2021
|
Time:
|
10:00 a.m.
ET
|
Conference
Call:
|
Toll Free Dial-In
Number
|
(833)
670-0721
|
|
Toll Dial-In
Number
|
(825)
312-2060
|
|
Conference
ID
|
6190377
|
Webcast:
|
https://event.on24.com/wcc/r/3012192/B01EC6652DCE4F1ED4453077D248261A
|
|
Presentation also
available at: www.algonquinpowerandutilities.com
|
About Algonquin Power & Utilities Corp. and
Liberty
Algonquin Power & Utilities Corp., parent company of
Liberty, is a diversified international generation, transmission,
and distribution utility with approximately $13 billion of total assets. Through its two
business groups, the Regulated Services Group and the Renewable
Energy Group, AQN is committed to providing safe, secure, reliable,
cost-effective, and sustainable energy and water solutions through
its portfolio of electric generation, transmission, and
distribution utility investments to over one million customer
connections, largely in the United
States and Canada. AQN is a global leader in renewable
energy through its portfolio of long-term contracted wind, solar,
and hydroelectric generating facilities. AQN owns, operates, and/or
has net interests in over 3 GW of installed capacity.
AQN is committed to delivering growth and the pursuit of
operational excellence in a sustainable manner through an expanding
global pipeline of renewable energy and electric transmission
development projects, organic growth within its rate-regulated
generation, distribution, and transmission businesses, and the
pursuit of accretive acquisitions.
AQN's common shares, Series A preferred shares, and Series D
preferred shares are listed on the Toronto Stock Exchange under the
symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common
shares, Series 2018-A subordinated notes and Series 2019-A
subordinated notes are listed on the New York Stock Exchange under
the symbols AQN, AQNA and AQNB, respectively.
Visit AQN at www.algonquinpowerandutilities.com and follow
us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute
''forward-looking information'' within the meaning of applicable
securities laws in each of the provinces of Canada and the respective policies,
regulations and rules under such laws and ''forward-looking
statements'' within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, ''forward-looking
statements"). The words "will", "expects", "plans", "estimates",
"intends" and similar expressions are often intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Specific
forward-looking statements in this news release include, but are
not limited to statements regarding: the expected performance and
growth of AQN, including expectations regarding 2021 Adjusted Net
Earnings per share; the estimated impacts of the Midwest Extreme
Weather Event on the Company, its operations, its facilities and
its financial results, the Company's response to the Midwest
Extreme Weather Event, the expected future recovery from customers
of substantially all incremental commodity costs incurred with the
Midwest Extreme Weather Event, and the expectation that the Company
will have sufficient liquidity to fund such costs in the interim;
capital expenditure plans; expected generating capacity and
completion dates of renewable energy construction projects;
expectations regarding the anticipated closing of the Company's
acquisition of a 51% interest in the West Raymond Wind Facility;
the expected reduction in carbon emissions due to the retirement of
the Asbury coal generation plant; and the expected use of proceeds
from the green note offering of Liberty Utilities Finance GP1.
These statements are based on factors or assumptions that were
applied in drawing a conclusion or making a forecast or projection,
including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking
statements relate to future events and conditions, by their very
nature they require making assumptions and involve inherent risks
and uncertainties. AQN cautions that although it is believed that
the assumptions are reasonable in the circumstances, these risks
and uncertainties give rise to the possibility that actual results
may differ materially from the expectations set out in the
forward-looking statements. Material risk factors and assumptions
include those set out in the Annual MD&A and in AQN's Annual
Information Form for the year ended December
31, 2020, which will be available on SEDAR and EDGAR. Given
these risks, undue reliance should not be placed on these
forward-looking statements, which apply only as of their dates.
Other than as specifically required by law, AQN undertakes no
obligation to update any forward-looking statements to reflect new
information, subsequent or otherwise.
Non-GAAP Financial Measures
The terms "Adjusted Net Earnings", "Adjusted EBITDA" and
"Adjusted Funds from Operations" are used in this press release.
The terms "Adjusted Net Earnings", "Adjusted EBITDA" and "Adjusted
Funds from Operations" are not recognized measures under U.S. GAAP.
There is no standardized measure of "Adjusted Net Earnings",
"Adjusted EBITDA" and "Adjusted Funds from Operations"";
consequently, AQN's method of calculating these measures may differ
from methods used by other companies and therefore may not be
comparable to similar measures presented by other companies. A
calculation and analysis of "Adjusted Net Earnings", "Adjusted
EBITDA" and "Adjusted Funds from Operations", including a
reconciliation to the U.S. GAAP equivalent, where applicable, can
be found in the Annual MD&A.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure used by many investors to
compare companies on the basis of ability to generate cash from
operations. AQN uses these calculations to monitor the amount of
cash generated by AQN. AQN uses Adjusted EBITDA to assess the
operating performance of AQN without the effects of (as
applicable): depreciation and amortization expense, income tax
expense or recoveries, acquisition costs, litigation expenses,
interest expense, gain or loss on derivative financial instruments,
write down of intangibles and property, plant and equipment,
earnings attributable to non-controlling interests, non-service
pension and post-employment costs, cost related to tax equity
financing, costs related to management succession and executive
retirement, costs related to prior period adjustments due to U.S.
Tax Reform (as defined herein), costs related to condemnation
proceedings, impacts on the Company's Senate Wind Facility
associated with the market disruption related to the Midwest
Extreme Weather Event, gain or loss on foreign exchange, earnings
or loss from discontinued operations, changes in value of
investments carried at fair value, and other typically
non-recurring or unusual items. AQN adjusts for these factors as
they may be non-cash, unusual in nature and are not factors used by
management for evaluating the operating performance of the Company.
AQN believes that presentation of this measure will enhance an
investor's understanding of AQN's operating performance. Adjusted
EBITDA is not intended to be representative of cash provided by
operating activities or results of operations determined in
accordance with U.S. GAAP, and can be impacted positively or
negatively by these items.
Adjusted Net Earnings
Adjusted Net Earnings is a non-GAAP measure used by many
investors to compare net earnings from operations without the
effects of certain volatile primarily non-cash items that generally
have no current economic impact or items such as acquisition
expenses or litigation expenses that are viewed as not directly
related to a company's operating performance. AQN uses Adjusted Net
Earnings to assess its performance without the effects of (as
applicable): gains or losses on foreign exchange, foreign exchange
forward contracts, interest rate swaps, acquisition costs, one-time
costs of arranging tax equity financing, litigation expenses and
write down of intangibles and property, plant and equipment,
earnings or loss from discontinued operations, unrealized
mark-to-market revaluation impacts (other than those realized in
connection with the sales of development assets), costs related to
management succession and executive retirement, costs related to
prior period adjustments due to U.S. Tax Reform, costs related to
condemnation proceedings, impacts on the Company's Senate Wind
Facility associated with the market disruption related to the
Midwest Extreme Weather Event, changes in value of investments
carried at fair value, and other typically non-recurring or unusual
items as these are not reflective of the performance of the
underlying business of AQN. The Non-cash accounting charge related
to the revaluation of U.S. deferred income tax assets and
liabilities as a result of implementation of the effects of the Tax
Cuts and Jobs Act ("U.S. Tax Reform") is adjusted as it is also
considered a non-recurring item not reflective of the performance
of the underlying business of AQN. AQN believes that analysis and
presentation of net earnings or loss on this basis will enhance an
investor's understanding of the operating performance of its
businesses. Adjusted Net Earnings is not intended to be
representative of net earnings or loss determined in accordance
with U.S. GAAP, and can be impacted positively or negatively by
these items.
Adjusted Funds from Operations
Adjusted Funds from Operations is a non-GAAP measure used by
investors to compare cash flows from operating activities without
the effects of certain volatile items that generally have no
current economic impact or items such as acquisition expenses that
are viewed as not directly related to a company's operating
performance. AQN uses Adjusted Funds from Operations to assess its
performance without the effects of (as applicable): changes in
working capital balances, acquisition expenses, litigation
expenses, cash provided by or used in discontinued operations and
other typically non-recurring items affecting cash from operations
as these are not reflective of the long-term performance of the
underlying businesses of AQN. AQN believes that analysis and
presentation of funds from operations on this basis will enhance an
investor's understanding of the operating performance of its
businesses. Adjusted Funds from Operations is not intended to be
representative of cash flows from operating activities as
determined in accordance with U.S. GAAP, and can be impacted
positively or negatively by these items.
Reconciliation of Adjusted EBITDA to Net Earnings
The following table is derived from and should be read in
conjunction with the consolidated statement of operations. This
supplementary disclosure is intended to more fully explain
disclosures related to Adjusted EBITDA and provides additional
information related to the operating performance of AQN. Investors
are cautioned that this measure should not be construed as an
alternative to U.S. GAAP consolidated net earnings.
|
Three Months
Ended
December 31
|
|
Twelve Months
Ended
December 31
|
(all dollar
amounts in $ millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net earnings
attributable to shareholders
|
$
|
504.2
|
|
$
|
172.1
|
|
$
|
782.5
|
|
$
|
530.9
|
Add
(deduct):
|
|
|
|
|
|
|
|
Net earnings
attributable to the non-controlling interest,
exclusive of HLBV1
|
3.1
|
|
(3.7)
|
|
14.9
|
|
19.1
|
Income tax
expense
|
51.1
|
|
12.5
|
|
64.6
|
|
70.1
|
Interest
expense
|
45.3
|
|
47.4
|
|
181.9
|
|
181.5
|
Other net
losses3
|
16.6
|
|
12.6
|
|
61.3
|
|
26.7
|
Pension and
post-employment non-service costs
|
4.7
|
|
7.3
|
|
14.1
|
|
17.3
|
Change in value of
investments carried at fair value2
|
(464.0)
|
|
(98.1)
|
|
(559.7)
|
|
(278.1)
|
Loss (gain) on
derivative financial instruments
|
0.8
|
|
(0.5)
|
|
(1.0)
|
|
(16.1)
|
Realized loss on
energy derivative contracts
|
(0.2)
|
|
—
|
|
(1.1)
|
|
(0.2)
|
Loss (gain) on foreign
exchange
|
3.5
|
|
3.1
|
|
(2.1)
|
|
3.1
|
Depreciation and
amortization
|
88.0
|
|
77.7
|
|
314.1
|
|
284.3
|
Adjusted
EBITDA
|
$
|
253.1
|
|
$
|
230.4
|
|
$
|
869.5
|
|
$
|
838.6
|
|
|
1
|
HLBV represents the
value of net tax attributes earned during the period primarily from
electricity generated by certain U.S. wind power and U.S. solar
generation facilities. HLBV earned in the three and twelve
months ended December 31, 2020 amounted to $20.4 million and $69.5
million as compared to $16.0 million and $65.0 million during the
same period in 2019.
|
2
|
See Note 8 in
the annual consolidated financial statements
|
3
|
See Note 19 in
the annual consolidated financial statements
|
Reconciliation of Adjusted Net Earnings to Net
Earnings
The following table is derived from and should be read in
conjunction with the consolidated statement of operations. This
supplementary disclosure is intended to more fully explain
disclosures related to Adjusted Net Earnings and provides
additional information related to the operating performance of AQN.
Investors are cautioned that this measure should not be construed
as an alternative to consolidated net earnings in accordance with
U.S. GAAP.
The following table shows the reconciliation of net earnings to
Adjusted Net Earnings exclusive of these items:
|
|
Three Months
Ended
December 31
|
|
Twelve Months
Ended
December 31
|
(all dollar
amounts in $ millions except per share information)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net earnings
attributable to shareholders
|
$
|
504.2
|
|
$
|
172.1
|
|
$
|
782.5
|
|
$
|
530.9
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Loss (gain) on
derivative financial instruments
|
|
0.8
|
|
|
(0.5)
|
|
(1.0)
|
|
|
(0.3)
|
Realized loss on
energy derivative contracts
|
|
(0.2)
|
|
|
—
|
|
(1.1)
|
|
|
(0.2)
|
Other net
losses2
|
|
16.6
|
|
|
12.5
|
|
61.3
|
|
|
26.7
|
Loss (gain) on foreign
exchange
|
|
3.5
|
|
|
3.0
|
|
(2.1)
|
|
|
3.1
|
Change in value of
investments carried at fair value1
|
|
(464.0)
|
|
|
(98.1)
|
|
(559.7)
|
|
|
(278.1)
|
Other non-recurring
adjustments
|
|
—
|
|
|
2.2
|
|
1.0
|
|
|
2.2
|
Adjustment for taxes
related to above3
|
|
66.1
|
|
|
12.4
|
|
84.9
|
|
|
37.0
|
Adjusted Net
Earnings
|
$
|
127.0
|
|
$
|
103.6
|
|
$
|
365.8
|
|
$
|
321.3
|
Adjusted Net
Earnings per share
|
$
|
0.21
|
|
$
|
0.20
|
|
$
|
0.64
|
|
$
|
0.63
|
|
|
1
|
See Note 8 in
the annual consolidated financial statements
|
2
|
See Note 19 in
the annual consolidated financial statements
|
3
|
Includes a one-time
tax expense of $9.3 million to reverse the benefit of deductions
taken in the prior year. See Note 18 in the annual
consolidated financial statements.
|
Reconciliation of Adjusted Funds from Operations to Cash
Flows from Operating Activities
The following table is derived from and should be read in
conjunction with the consolidated statement of operations and
consolidated statement of cash flows. This supplementary disclosure
is intended to more fully explain disclosures related to Adjusted
Funds from Operations and provides additional information related
to the operating performance of AQN. Investors are cautioned that
this measure should not be construed as an alternative to cash
flows from operating activities in accordance with U.S GAAP.
The following table shows the reconciliation of cash flows from
operating activities to Adjusted Funds from Operations exclusive of
these items:
|
Three Months
Ended
December 31
|
|
Twelve Months
Ended
December 31
|
(all dollar
amounts in $ millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
$
|
174.0
|
|
$
|
167.5
|
|
$
|
505.2
|
|
$
|
611.3
|
Add
(deduct):
|
|
|
|
|
|
|
|
Changes in non-cash
operating items
|
(2.8)
|
|
(29.8)
|
|
77.5
|
|
(60.3)
|
Production based cash
contributions from non-controlling interests
|
—
|
|
—
|
|
3.4
|
|
3.6
|
Acquisition-related
costs
|
8.1
|
|
6.4
|
|
14.1
|
|
11.6
|
Adjusted Funds
from Operations
|
$
|
179.3
|
|
$
|
144.1
|
|
$
|
600.2
|
|
$
|
566.2
|
View original
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SOURCE Algonquin Power & Utilities Corp.