BOSTON, Aug. 8, 2013 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today released its results for the three and six months
ended June 30, 2013.
All amounts are in U.S. dollars unless otherwise indicated.
Cash Available for Distribution, Cash Distributions from Projects,
Payout Ratio, and Project Adjusted EBITDA are not recognized
measures under generally accepted accounting principles in
the United States ("GAAP") and do
not have standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies. Please see "Regulation G Disclosures" attached to
this news release for an explanation and the GAAP reconciliation of
"Cash Available for Distribution", "Cash Distributions from
Projects", "Payout Ratio" and "Project Adjusted EBITDA" as used in
this news release.
YTD June 2013 Financial
Highlights
- Project income of $46.7 million
increased $91.2 million from YTD
June 2012
- Cash flows from operating activities of $96.9 million increased $7.6 million from YTD June
2012
- Project Adjusted EBITDA increased $24.9
million from YTD June 2012 to
$136.8 million, or approximately half
of the Company's full-year guidance midpoint
- Cash Available for Distribution, including discontinued
operations, of $75.0 million
increased $2.2 million from YTD
June 2012
- Dividend Payout Ratio for the six months ended June 30, 2013 was 48%
Q2 2013 Financial Highlights
- Project income increased $23.1
million from Q2 2012
- Cash flows from operating activities declined $15.7 million from Q2 2012, primarily due to
asset sales and disposition costs, partly offset by new projects
and realized foreign exchange gains
- Project Adjusted EBITDA increased $10.8
million from Q2 2012, primarily from new projects
- Cash Available for Distribution and Payout Ratio were negative,
primarily due to lower cash flows from operating activities
as described above, higher project capital expenditures and
additional project debt repayments
- Achieved mid-year goal of accumulating approximately
$150 million of excess cash
Recent Developments
- Took actions to reduce administration and early-stage project
development budget by approximately $8
million, with benefits expected to be realized in 2014
- Executed amendment to the Company's senior credit facility on
August 2
- Completed the sale of the Company's 17% interest in the Gregory
project for net cash proceeds of $34.6
million on August 7
- Received Piedmont federal grant proceeds of $49.5 million and repaid the project's bridge
loan of $51.0 million in July
- Reaffirmed guidance for 2013 Project Adjusted EBITDA, Cash
Available for Distribution and Payout Ratio and for 2014 Payout
Ratio
"Our operating and financial results for the year remain on
track, with significant contributions to earnings and cash flows
from new projects, particularly Canadian Hills and Meadow Creek,"
said Barry Welch, President and CEO
of Atlantic Power. "We achieved our mid-year excess cash
target and expect to build on that. Our plan is to prioritize
the use of a substantial amount of this excess cash for debt
reduction, which would benefit cash flows, strengthen our balance
sheet and help to improve our cost of capital. We also
continue to look selectively at potential investments in accretive
growth projects. In addition, we recently implemented changes
that will meaningfully reduce our administration expense and
project development budget."
Atlantic Power
Corporation
Table 1 – Selected
Results
(in millions of
U.S. dollars, except as otherwise stated)
Unaudited
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2013
|
2012
|
2013
|
2012
|
Excluding results
from discontinued operations(1)
|
|
|
|
|
Project
revenue
|
$139.0
|
$101.4
|
$279.2
|
$220.1
|
Project income (loss)
(2)
|
15.6
|
(7.5)
|
46.7
|
(44.5)
|
Project Adjusted
EBITDA (3)
|
56.2
|
45.4
|
136.8
|
111.9
|
Cash Distributions
from Projects (3)
|
50.8
|
41.3
|
105.1
|
95.0
|
Aggregate power
generation (thousands of Net MWh)
|
2,076.2
|
1,394.0
|
3,988.5
|
2,886.5
|
Weighted average
availability
|
93.1%
|
94.8%
|
94.1%
|
92.2%
|
Including results
from discontinued operations
|
|
|
|
|
Cash flows from
operating activities (4)
|
$7.2
|
$22.9
|
$96.9
|
$89.3
|
Cash Available for
Distribution (3)
|
(6.7)
|
13.0
|
75.0
|
72.8
|
Total cash dividends
declared to shareholders
|
11.0
|
32.3
|
36.3
|
65.1
|
Payout ratio
(3)
|
(165)%
|
249%
|
48%
|
89%
|
(1) The
Path 15 transmission line ("Path 15"), Auburndale Power Partners,
L.P. ("Auburndale"), Lake CoGen, Ltd. ("Lake") and Pasco Cogen ,
Ltd. ("Pasco") (collectively, the "Sold Projects") were sold in
April 2013, and accordingly, the revenues, project income (loss),
Project Adjusted EBITDA and Cash Distributions from Projects of
these assets have been classified as discontinued operations for
the three and six months ended June 30, 2013 and 2012, which means
that the results from these discontinued operations are excluded
from these figures. The results for discontinued operations have
also been excluded from the aggregate power generation and weighted
average availability statistics. Under GAAP, the cash flows
attributable to the Sold Projects are included in cash flows from
operating activities as shown on the Consolidated Statement of Cash
Flows; therefore, the Company's calculations of Cash Available for
Distribution and Payout Ratio as shown herein also include cash
flows from the Sold Projects.
(2) The
Company has long-term gas purchase contracts for three of its
gas-fired projects in Ontario. These contracts are accounted
for in the Company's financial statements as derivative financial
instruments. Each accounting period, the Company is required
to "mark to market" the fair value of these derivatives. When
the market price of gas increases, the fair value of the derivative
increases and the Company incurs an unrealized gain; when the
market price of gas declines, the fair value declines and the
Company incurs an unrealized loss. These unrealized gains and
losses are included in the Company's statement of operations and
the appropriate adjustments are made to the carrying value of the
derivative instrument on the Company's balance sheet. These
mark-to-market adjustments do not affect the Company's cash flows,
nor do they affect the actual cash outlay for the natural gas
purchased to supply the Company's
plants.
(3)
Project Adjusted EBITDA, Cash Available for Distribution, Cash
Distributions from Projects and Payout Ratio are not recognized
measures under GAAP and do not have any standardized meaning
prescribed by GAAP; therefore, these measures may not be comparable
to similar measures presented by other companies. Please refer to
Table 9 for reconciliations of these non-GAAP measures to GAAP
measures.
(4) As
discussed in the Company's quarterly report on Form 10-Q for the
fiscal quarter ended June 30, 2013, the Company reclassified
$(15.5) million of cash flows from operations to construction in
progress, which is included in cash flows from investing
activities, for the three months ended March 31, 2013. This
increased cash flows from operations and Cash Available for
Distribution for the six months ended June 30, 2013 by $15.5
million and lowered the Payout Ratio for the same period. The
reclassification had no impact on results for the three months
ended June 30, 2013.
|
|
|
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|
|
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Financial Review for the Three and Six Months Ended
June 30, 2013
GAAP Measures
Cash flows from operating activities, which include cash
flows from discontinued operations, decreased by $15.7 million to $7.2
million for the three months ended June 30, 2013 compared to $22.9 million for the same period a year ago, but
increased $7.6 million to
$96.9 million for the six months
ended June 30, 2013 compared to
$89.3 million for the same period in
2012. Factors positively affecting the three- and six-month
performance included the cash flows from new projects the Company
added in December 2012, particularly
its Canadian Hills and Meadow Creek wind projects, increased cash
flows from the Company's equity method projects, and realized
foreign exchange gains on forward contract settlements, including a
$9.4 million gain from contracts
terminated in April 2013. In the three-month period ended
June 30, 2013 these positive factors
were more than offset by the reduced cash flow contributions from
assets that were divested in April
2013 (including the Sold Projects), including costs of
approximately $3 million associated
with these dispositions and higher legal expenses.
Project income increased by $23.1
million to $15.6 million and
by $91.2 million to $46.7 million for the three and six months ended
June 30, 2013, respectively, compared
to project loss of $(7.5) million and
$(44.5) million for the same periods
in 2012, respectively. The increase for the three-month
period ended June 30, 2013 relates
primarily to unrealized gains in the fair value of gas purchase
agreements at the Company's Nipigon project and the fair value of
interest rate swaps in the Company's Northwest segment. The
increase for the six months ended June 30,
2013 relates primarily to non-cash, mark-to-market
adjustments to reflect the fair value of gas purchase agreements in
the Company's Northeast segment and the fair value of interest rate
swaps in the Company's Northwest segment. Generally, reported
project income can fluctuate significantly due to impacts from
non-cash mark-to-market fair value of derivatives
adjustments.
Non-GAAP Measures
Project Adjusted EBITDA, which includes earnings from the
Company's equity method investments but excludes the results of
discontinued operations, increased by $10.8
million to $56.2 million and
by $24.9 million to $136.8 million for the three and six months ended
June 30, 2013, respectively, compared
to $45.4 million and $111.9 million for the same periods in 2012,
respectively. The increases over the prior-year periods are
primarily due to contributions from new projects added in
December 2012, which includes
$7.8 million and $14.6 million from Canadian Hills for the three
and six months ended June 30, 2013,
respectively, and $3.5 million and
$6.5 million from Meadow Creek for
the three and six months ended June 30,
2013, respectively. Results for the three- and
six-month periods in 2012 included $3.6
million from the settlement of a PPA dispute at the
Company's Chambers project in the second quarter of 2012. The
Company has not reconciled non-GAAP financial measures relating to
individual projects to the directly comparable GAAP measures due to
the difficulty in making the relevant adjustments on an individual
project basis.
Cash Distributions from Projects, which excludes cash
distributions from discontinued operations, increased by
$9.5 million to $50.8 million and by $10.1
million to $105.1 million for
the three and six months ended June 30,
2013, respectively, compared to $41.3
million and $95.0 million for
the same periods in 2012, respectively. Increased
distributions from projects in the Northeast segment as well as
initial distributions from Canadian Hills (which was added in
December 2012), were the primary
factors driving the increase for YTD June
2013 over the same period in 2012. These increases
were offset by decreased distributions in the Southwest segment for
the YTD June 2013 compared to the
same prior year period. Meadow Creek, also added in
December 2012, has not yet made
distributions but is expected to make its first distribution in the
third quarter of 2013 as permitted under its project-level debt
arrangements. The Company continues to expect project
distributions from Canadian Hills of $15 to
$19 million and from Meadow Creek of $7 to $8 million on a multi-year average annual
basis.
Cash Available for Distribution, which includes the
impact of discontinued operations, decreased by $19.7 million to $(6.7)
million and increased by $2.2
million to $75.0 million for
the three and six months ended June 30,
2013, respectively, compared to $13.0
million and $72.8 million for
the same periods in 2012, respectively. The decrease for the
three months ended June 30, 2013 over
the prior-year period is primarily due to a reduction in cash flows
from operating activities (as described earlier in that section
under GAAP Measures), further reduced by planned higher capital
expenditures at Meadow Creek related to completion of punch list
items and at Curtis Palmer for new turbines and additional project
debt repayments attributable to the new projects (Meadow Creek,
Piedmont and Rockland). The
increase for the six months ended June 30,
2013 over the prior-year period is primarily due to the
increase in cash flows from operating activities, partially offset
by higher capital expenditures and modestly higher project debt
repayments as described above.
Dividend Payout Ratio for the three and six months ended
June 30, 2013 was (165)% and 48%,
respectively, compared to 249% and 89%, respectively, in the
comparable prior-year periods. The negative Payout Ratio in
the three-month period ended June 30,
2013 reflects negative Cash Available for Distribution as
discussed in the preceding paragraph. The Company's Payout
Ratio fluctuates from quarter to quarter and in the second and
fourth quarters of the year is typically adversely affected by the
seasonality of the Company's operations as well as the timing of
semi-annual interest payments on the Company's Senior Notes.
For the six-month period ended June 30,
2013, the decrease in the Payout Ratio reflects the modest
increase in Cash Available for Distribution as discussed in the
preceding paragraph and the impact of the lower dividend rate,
which was effective beginning in March of 2013. For further
information, attached to this news release is a reconciliation of
Cash Available for Distribution and Payout Ratio to cash flows from
operating activities (Table 9).
Sold Projects/Discontinued Operations
Financial
results for the three and six months ended June 30, 2013 and June 30,
2012 are affected by the classification of the Company's
interests in the Sold Projects as discontinued operations;
accordingly, the revenues, project income, Project Adjusted EBITDA
and Cash Distributions from Projects for the Sold Projects have
been classified as discontinued operations and are excluded
from continuing operations results. The results for the Sold
Projects have been separately stated in the Consolidated Statements
of Operations as "Income from discontinued operations, net of
tax".
Project income attributable to the Sold Projects was
$(0.3) million and $1.0 million for the three and six months ended
June 30, 2013, respectively, compared
to $19.1 million and $31.3 million, respectively, for the same periods
in 2012. Project Adjusted EBITDA attributable to the Sold
Projects was $5.4 million and
$36.2 million for the three and six
months ended June 30, 2013,
respectively, compared to $27.4
million and $53.6 million,
respectively, for the same periods in 2012.
Under GAAP, the cash flow attributable to the Sold Projects is
included in cash flows from operating activities as shown on
the Consolidated Statement of Cash Flows; therefore, the Company's
calculations of Cash Available for Distribution and Payout Ratio as
shown herein also include cash flow from the Sold Projects. Cash
Available for Distribution from the Sold Projects for the six
months ended June 30, 2013 was
$37 million compared to $41 million for the same period in 2012.
The Company has not reconciled non-GAAP financial measures
relating to the Sold Projects to the directly comparable GAAP
measures due to the difficulty in making the relevant adjustments
on an individual project basis. The Delta-Person generating
station ("Delta-Person"), which is under a purchase and sale
agreement, and the Gregory project ("Gregory"), which was sold on
August 7, are included in the
Company's financial results from continuing operations for the
three and six months ended June 30,
2013 and 2012, as the projects are accounted for under the
equity method of accounting.
Supplementary Financial Tables
For further information, attached to this news release is a
summary of Project Adjusted EBITDA by segment for the three and six
months ended June 30, 2013 and 2012
(Table 7) with a reconciliation to Project income (loss); a bridge
from Project Adjusted EBITDA to Cash Distributions from Projects by
segment for the six months ended June 30,
2013 (Table 8A) and the six months ended June 30, 2012 (Table 8B); a reconciliation of
Cash Distributions from Projects and Project Adjusted EBITDA to Net
income (loss) for the three and six months ended June 30, 2013 and 2012 (Table 9); a
reconciliation of Cash Available for Distribution and Payout Ratio
to cash flows from operating activities for the three and six
months ended June, 2013 and 2012 (Table 9); and a summary of
Project Adjusted EBITDA for selected projects (top contributors
based on the Company's 2013 budget, representing approximately 75%
to 80% of total Project Adjusted EBITDA) for the three and six
months ended June 30, 2013 and 2012
(Table 10).
Reaffirming 2013 Guidance
- Annual Project Adjusted EBITDA guidance of $250 to $275 million
- Annual Cash Available for Distribution guidance of $85 to $100 million
- Annual Payout Ratio guidance of 65% to 75%, including cash
flows from discontinued operations
Project Adjusted EBITDA
The Company is reaffirming its previous guidance for 2013
Project Adjusted EBITDA in the range of $250
to $275 million. (Note that Project Adjusted EBITDA
attributable to the Sold Projects is excluded from both the three
and six months ended June 30, 2013
results and from 2013 guidance.)
Cash Available for Distribution
The Company is reaffirming its previous guidance for 2013 Cash
Available for Distribution in the range of $85 to $100 million. (Note that Cash
Available for Distribution includes cash flows from discontinued
operations. Cash Available for Distribution from discontinued
operations for the six months ended June 30,
2013 was $37 million and it is
expected to approximate that level for the full year 2013 as
well.) The Company has not reconciled non-GAAP financial
measures relating to the Sold Projects to the directly comparable
GAAP measures due to the difficulty in making the relevant
adjustments on an individual project basis.
Dividend Payout Ratio for 2013 and 2014
The Company is reaffirming its guidance range for 2013 Payout
Ratio of approximately 65% to 75%, including cash flows from
discontinued operations. On a pro forma basis, reflecting the
lower dividend rate for a full year and excluding cash flows from
discontinued operations, the 2013 Pro Forma Payout Ratio is
expected to be less than 100%.
The Company is also reaffirming its 2014 Payout Ratio guidance
of 75% to 85%. The $11 million
Nipigon capex project (to upgrade the project's heat recovery steam
generator) remains under consideration for 2014, pending receipt of
all necessary approvals and permits, but is not currently included
in the Company's 2014 Payout Ratio guidance. If a decision
were made to proceed with the project, the cash outlay would be
reflected in guidance and the 2014 Payout Ratio would be expected
to exceed the guidance range of 75% to 85%.
See Table 2 for full-year 2013 guidance compared to results for
the six months ending June 30,
2013.
Atlantic Power
Corporation
Table 2 – 2013
Annual Guidance v. results for the six months ended June 30,
2013
(in millions of
U.S. dollars, except as otherwise stated)
|
Unaudited
|
2013 Annual
Guidance
|
Six months
ended
June, 30
2013
|
Project Adjusted
EBITDA (1)(2)
|
$250 -
$275
|
$136.8
|
Cash Available for
Distribution (2)(3)
|
$85 - $100
|
$75.0
|
Total cash dividends
declared to shareholders
|
$60
|
$36.3
|
Payout Ratio,
including discontinued operations (2)(3)
|
65% - 75%
|
48%
|
(1) The Sold Projects
have been classified as discontinued operations. Accordingly,
the Project Adjusted EBITDA of these assets has been classified as
discontinued operations for the three and six months ended June 30,
2013, which means that the results from these discontinued
operations are excluded from this figure.
(2) Project Adjusted
EBITDA, Cash Available for Distribution and Payout Ratio are not
recognized measures under GAAP and do not have any standardized
meaning prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other companies.
Please refer to Table 9 for a reconciliation of these non-GAAP
measures to GAAP. The Company has not provided a
reconciliation of forward-looking non-GAAP measures, due primarily
to variability and difficulty in making accurate forecasts and
projections, as not all of the information necessary for a
quantitative reconciliation is available to the Company without
unreasonable efforts.
(3) Under GAAP, the
cash flows attributable to the Sold Projects are included in cash
flows from operating activities as shown on the Consolidated
Statement of Cash Flows; therefore, the Company's calculations of
Cash Available for Distribution and Payout Ratio as shown herein
also include cash flows from the Sold Projects.
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Liquidity
Bank facility amended. On August 2, 2013, the Company entered into an
amendment to its revolving senior credit facility (the "amended
credit facility"), which, among other things, reduced the capacity
of its revolver to $150 million from
$300 million, all $150 million of which may be utilized for letters
of credit (as compared to the previous $200
million that could have been utilized for letters of credit)
and a sublimit of $25 million which
may be utilized for other borrowings, and amended the maturity date
of the revolver from November 2015 to
March 2015. The required interest coverage and leverage
ratios and other covenants were also amended. The Company
expects to meet the covenants under the amended credit facility for
the next 12 months, and was in compliance with these covenants as
of August 5, 2013. The Company
believes that it will be able to generate sufficient amounts of
cash and cash equivalents to maintain its operations and meet
obligations as they become due for the next 12 months. For a
description of the changes to the revolving senior credit facility,
see the Company's Current Report on Form 8-K filed on August 2, 2013 and the Company's Quarterly Report
on Form 10-Q for the quarter ended June 30,
2013.
Levels of and planned uses of excess cash. At
June 30, 2013, the Company had
$196 million of unrestricted
cash. Net of a planned cash reserve of $50 million, available excess cash was
$146 million, in line with the
Company's mid-year objective of $150
million. The Company expects to have approximately
$230 million of unrestricted cash at
year-end 2013. Under the amended credit facility, the Company
is required to maintain an unrestricted cash reserve of at least
$75 million. Net of that
reserve, the Company expects to have available excess cash at
year-end 2013 of approximately $155
million. The Company intends to prioritize the use of
a substantial amount of its excess cash for debt reduction to the
extent permitted under the amended credit facility. In
addition, the Company intends to continue to look selectively at
investments in accretive growth projects.
See Table 3 for projected year-end 2013 liquidity compared to
the actual and pro forma levels at June 30,
2013.
Atlantic Power
Corporation Table 3 –
Liquidity (in millions of U.S. dollars)
|
Unaudited
|
June 30,
2013
|
|
Pro Forma
(1)
June 30,
2013
|
|
Projected
Year-end
2013
|
|
Unrestricted
cash
|
$196
|
|
$196
|
|
$230
|
|
Less: cash reserve
(2)
|
(50)
|
|
(75)
|
|
(75)
|
|
Available
cash
|
$146
|
|
$121
|
|
$155
|
|
Borrowing capacity
under revolver
|
$218
|
(3)
|
$25
|
(4)
|
$25
|
(4)
|
Total
Liquidity
|
$364
|
|
$146
|
|
$180
|
|
(1)
Represents pro forma liquidity as of June 30, 2013 pursuant to the
August 2, 2013 amended credit facility. (2) Actual June 30, 2013 is a planned
reserve; pro forma June 30, 2013 and projected year-end 2013
figures represent required reserves (becomes restricted cash) under
the amended credit facility. (3) Capacity of $300 million reduced by
$82.5 million in outstanding letters of
credit. (4) Excludes
letter of credit capacity of $150 million.
|
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Business Update
Reductions to Administration and Development Budget
During July the Company implemented changes in several key areas
that are expected to result in an approximate $8 million reduction to administration and
early-stage project development expenses as compared to its
previous budget. The expense reductions are expected to occur
in three broad areas, which are, in order of significance:
(1) reduction in the early-stage development budget, both for
personnel and third-party expenses, consistent with de-emphasizing
early-stage development projects; (2) consolidation of accounting
and finance functions in two offices, down from three; and (3)
additional synergies from realignment of the operational
organization and full integration of areas such as health care,
plant insurance, IT, travel and other functions throughout the
Company.
The Company expects to incur costs associated with implementing
these changes, the majority of which will be recorded in the third
and fourth quarters of 2013. The net impact on cash flows is
expected to be approximately neutral in 2013. The savings
from these changes are expected to be realized in 2014 on a
run-rate basis. However, the Company may experience increases
in unrelated costs such as those associated with its debt reduction
objectives and plant optimization initiatives. The net impact
on cash flows is expected to be positive in 2014 but within the
range of the Company's Payout Ratio guidance, which is
unchanged.
Executing Non-Core Asset Sales
On August 7, 2013, the Company,
along with its partners, completed the previously announced sale of
its 17% interest in the Gregory project for net cash proceeds of
approximately $34.6 million in the
aggregate, after repayment of project-level debt and transaction
expenses. Pursuant to the terms of the purchase and sale
agreement, approximately $5 million
of these proceeds will be held in escrow for up to one year
following the closing date.
As previously disclosed, in December
2012, the Company signed a purchase and sale agreement with
PNM, a subsidiary of PNM Resources, Inc., pursuant to which the
Company and its partners in the investment have agreed to sell
Delta-Person. The Company expects this transaction to close
in the fourth quarter of 2013, subject to receipt of all required
approvals, and expects to receive net cash proceeds of
approximately $8.9 million.
Piedmont Update
Commercial operation of Piedmont Green Power ("Piedmont") was
achieved on April 19. Since then, the Company has been
focused on improving Piedmont's operating performance.
Piedmont is working through a dispute with the contractor, Zachry
Industrial, Inc. ("Zachry"), about its performance obligations
under the turnkey engineering, procurement and construction
contract; an arbitration process has recently started.
Discussions are also under way with the project lenders regarding
conversion of the project's construction loan ($75.1 million outstanding) to a term loan,
targeted for later this year.
The Company expects Project Adjusted EBITDA for Piedmont to be
below full-year levels in 2013 due to the delay in and costs
associated with achieving commercial operation and optimizing
performance. The Company does not expect to receive any
distributions from Piedmont in 2013. The Company believes
that $6 to $8 million of annual
project distributions from Piedmont on a full-year run-rate basis
remains a reasonable estimate but expects to provide an updated
outlook on that estimate as well as expectations for 2014 after
gaining additional operating history, resolving the final
settlement amounts in its dispute with Zachry and achieving term
conversion of the project's construction loan.
In May 2013, Piedmont submitted an
application under the federal 1603 grant program. In July,
the grant was approved and $49.5
million was received from the U.S. Treasury. With
these proceeds and a $1.5 million
contribution from Atlantic Power to cover the shortfall created by
the U.S. federal budget sequestration, the project's outstanding
$51 million bridge loan was fully repaid in July 2013, reducing the Company's short-term
debt.
Commercial Update
The Company executed a five-year extension of the energy sales
agreement ("ESA") at its 30 MW Kenilworth project in New Jersey in July
2013, which becomes effective November 1, 2013 and will run through
September 30, 2018.
Kenilworth has been operating
under a month-to-month extension of its ESA with Merck since it
expired in July 2012, and is expected
to continue to do so until the new ESA becomes effective in
November.
As discussed on its first-quarter conference call, the Company
expects to shut down its 72 MW Greeley project in Colorado after the project's PPA expires at
the end of August 2013. The impact on the Company's financial
results is expected to be immaterial.
Investor Conference Call and Webcast
A telephone conference call hosted by Atlantic Power's
management team will be held on Friday, August 9, 2013 at
8:30 AM ET. An accompanying
slide presentation will be available on the Company's website prior
to the call. The telephone numbers for the conference call
are: U.S. Toll Free: 1-888-317-6016; Canada Toll Free:
1-855-669-9657; International Toll: +1 412-317-6016. The
conference call will also be broadcast over Atlantic Power's
website, with an accompanying slide presentation. Please call or
log in 10 minutes prior to the call. The telephone numbers to
listen to the conference call after it is completed (Instant
Replay) are U.S. Toll Free: 1-877-344-7529; International Toll:
+1-412-317-0088. Please enter conference call number 10031017. The
conference call will also be archived on Atlantic Power's
website.
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets in the United
States and Canada. Atlantic Power'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. Its
power generation projects in operation have an aggregate gross
electric generation capacity of approximately 3,018 MW in which its
aggregate ownership interest is approximately 2,098 MW. Its current
portfolio consists of interests in twenty-nine operational power
generation projects across eleven states in the United States and two provinces in
Canada.
Atlantic Power has a market capitalization of approximately
$500 million and trades on the New
York Stock Exchange under the symbol AT and on the Toronto Stock
Exchange under the symbol ATP. For more information, please
visit the Company's website at www.atlanticpower.com or
contact:
Atlantic Power Corporation
Amanda Wagemaker, Investor
Relations
(617) 977-2700
info@atlanticpower.com
Copies of certain financial data and other publicly filed
documents are filed on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Cautionary Note Regarding Forward-looking
Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended and under Canadian
securities law (collectively, "forward-looking statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of our Company
and our projects. These statements, which are based on
certain assumptions and describe our 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 expectations that:
- 2013 Project Adjusted EBITDA will be in the range of
$250 to $275 million;
- 2013 Cash Available for Distribution will be in the range of
$85 to $100 million;
- the 2013 Payout Ratio will be in the range of 65% to 75% and,
on a pro forma basis, less than 100%;
- the 2014 Payout Ratio is expected to be in the range of 75% to
85%;
- total cash dividends declared to shareholders in 2013 will be
approximately $60 million;
- the Company will have $230
million of unrestricted cash and $155
million available excess cash at year-end;
- the Company will be able to deploy a substantial amount of its
excess cash to reduce debt or invest in accretive growth
projects;
- Meadow Creek will begin to make distributions in the third
quarter of 2013;
- project distributions from Canadian Hills will be $15 to $19 million and from Meadow Creek
$7 to $8 million on a multi-year
average annual basis;
- the changes implemented by the Company in July will result in
an approximate $8 million reduction
to administration and early-stage project development expenses in
2014, the areas in which such expense reductions will occur, the
expected costs associated with these changes and the timing of such
costs and the net impact of such changes on cash flows;
- the sale of Delta-Person will successfully close in the fourth
quarter of 2013 with net cash proceeds received by the Company of
approximately $9 million;
- the Company will receive $6 to $8
million in project distributions on a full-year basis from
Piedmont and that Piedmont's construction loan will convert to a
term loan later in 2013;
- the 72 MW Greeley project in Colorado will be shut down in August 2013;
- the Company will meet the financial covenants under its amended
credit facility and other indebtedness and will have the ability to
maintain its dividend payments at the current level;
- the Company will be able to generate sufficient amounts of cash
and cash equivalents to maintain its operations and meet
obligations as they become due for the next 12 months; 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" 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 our Company. 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 financial outlook
information contained in this news release is presented to provide
readers with guidance on the cash distributions expected to be
received by the Company and to give readers a better understanding
of the Company's ability to pay its current level of distributions
into the future. Readers are cautioned that such information
may not be appropriate for other purposes.
Atlantic Power
Corporation
Table 4 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
|
|
|
June
30,
|
December
31,
|
|
|
|
|
|
2013
|
2012
|
|
Assets
|
|
|
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$195.6
|
$60.2
|
|
Restricted
cash
|
|
|
|
40.1
|
28.6
|
|
Accounts
receivable
|
|
|
|
71.4
|
58.5
|
|
Current portion of
derivative instruments asset
|
|
|
|
0.7
|
9.5
|
|
Inventory
|
|
|
|
18.1
|
16.9
|
|
Prepayments and other
current assets
|
|
|
|
17.2
|
13.4
|
|
Security
deposits
|
|
|
|
1.1
|
19.0
|
|
Assets held for
sale
|
|
|
|
-
|
351.4
|
|
Refundable income
taxes
|
|
|
|
1.4
|
4.2
|
|
Total current
assets
|
|
|
|
345.6
|
561.7
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
1,932.3
|
2,055.5
|
|
Equity investments in
unconsolidated affiliates
|
|
|
|
410.4
|
428.7
|
|
Other intangible
assets, net
|
|
|
|
483.6
|
524.9
|
|
Goodwill
|
|
|
|
331.2
|
334.7
|
|
Derivative
instruments asset
|
|
|
|
8.3
|
11.1
|
|
Other
assets
|
|
|
|
56.0
|
86.1
|
|
Total
assets
|
|
|
|
$3,567.4
|
$4,002.7
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$13.2
|
$17.8
|
|
Accrued
interest
|
|
|
|
17.8
|
19.0
|
|
Other accrued
liabilities
|
|
|
|
46.3
|
73.7
|
|
Revolving credit
facility
|
|
|
|
-
|
67.0
|
|
Current portion of
long-term debt
|
|
|
|
65.7
|
121.2
|
|
Current portion of
derivative instruments liability
|
|
|
|
32.2
|
33.0
|
|
Dividends
payable
|
|
|
|
3.8
|
11.5
|
|
Liabilities held for
sale
|
|
|
|
-
|
189.0
|
|
Other current
liabilities
|
|
|
|
3.1
|
3.3
|
|
Total current
liabilities
|
|
|
|
182.1
|
535.5
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
1,462.0
|
1,459.1
|
|
Convertible
debentures
|
|
|
|
408.3
|
424.2
|
|
Derivative
instruments liability
|
|
|
|
82.0
|
118.1
|
|
Deferred income
taxes
|
|
|
|
155.6
|
164.0
|
|
Power purchase and
fuel supply agreement liabilities, net
|
|
|
|
40.8
|
44.0
|
|
Other non-current
liabilities
|
|
|
|
70.5
|
71.4
|
|
Commitments and
contingencies
|
|
|
|
-
|
-
|
|
Total
liabilities
|
|
|
|
2,401.3
|
2,816.3
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common shares, no par
value, unlimited authorized shares; 119,901,246 and 119,446,865
issued and outstanding at June 30, 2013 and December 31, 2012,
respectively
|
|
|
|
1,285.4
|
1,285.5
|
|
Preferred shares
issued by a subsidiary company
|
|
|
|
221.3
|
221.3
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
(19.5)
|
9.4
|
|
Retained
deficit
|
|
|
|
(597.3)
|
(565.2)
|
|
Total Atlantic Power
Corporation shareholders' equity
|
|
|
|
889.9
|
951.0
|
|
Noncontrolling
interest
|
|
|
|
276.2
|
235.4
|
|
Total
equity
|
|
|
|
1,166.1
|
1,186.4
|
|
Total liabilities and
equity
|
|
|
|
$3,567.4
|
$4,002.7
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 5 –
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,
|
|
|
2013
|
2012
|
|
2013
|
2012
|
|
Project
revenue:
|
|
|
|
|
|
Energy
sales
|
$68.1
|
$49.4
|
|
$137.1
|
$109.4
|
|
Energy capacity
revenue
|
54.4
|
37.5
|
|
99.2
|
74.5
|
|
Other
|
16.5
|
14.5
|
|
42.9
|
36.2
|
|
|
139.0
|
101.4
|
|
279.2
|
220.1
|
|
|
|
|
|
|
|
|
Project
expenses:
|
|
|
|
|
|
|
Fuel
|
52.0
|
37.3
|
|
101.6
|
83.5
|
|
Operations and
maintenance
|
46.9
|
37.9
|
|
75.2
|
62.6
|
|
Development
|
1.8
|
-
|
|
3.5
|
-
|
|
Depreciation and
amortization
|
42.2
|
30.3
|
|
83.5
|
56.8
|
|
|
142.9
|
105.5
|
|
263.8
|
202.9
|
|
Project other income
(expense):
|
|
|
|
|
|
|
Change in fair value
of derivative instruments
|
24.3
|
(4.8)
|
|
36.9
|
(62.0)
|
|
Equity in earnings of
unconsolidated affiliates
|
8.7
|
5.5
|
|
15.9
|
8.4
|
|
Interest expense,
net
|
(8.7)
|
(4.1)
|
|
(16.7)
|
(8.1)
|
|
Other, net
|
(4.8)
|
-
|
|
(4.8)
|
-
|
|
|
19.5
|
(3.4)
|
|
31.3
|
(61.7)
|
|
Project income
(loss)
|
15.6
|
(7.5)
|
|
46.7
|
(44.5)
|
|
|
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
|
|
Administration
|
11.8
|
8.0
|
|
20.1
|
15.7
|
|
Interest,
net
|
25.3
|
21.4
|
|
51.2
|
43.4
|
|
Foreign exchange
gain
|
(14.5)
|
(4.2)
|
|
(22.0)
|
(3.2)
|
|
Other income,
net
|
(9.5)
|
(6.0)
|
|
(9.5)
|
(6.0)
|
|
|
13.1
|
19.2
|
|
39.8
|
49.9
|
|
Income (loss) from
continuing operations before income taxes
|
2.5
|
(26.7)
|
|
6.9
|
(94.4)
|
|
Income tax expense
(benefit)
|
0.6
|
(5.3)
|
|
(1.9)
|
(22.2)
|
|
Income (loss) from
continuing operations
|
1.9
|
(21.4)
|
|
8.8
|
(72.2)
|
|
Income (loss) from
discontinued operations, net of tax (1)
|
(0.7)
|
19.3
|
|
0.2
|
30.9
|
|
Net income
(loss)
|
1.2
|
(2.1)
|
|
9.0
|
(41.3)
|
|
Net income (loss)
attributable to noncontrolling interest
|
1.1
|
(0.2)
|
|
(0.8)
|
(0.3)
|
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
3.1
|
3.2
|
|
6.3
|
6.4
|
|
Net income (loss)
attributable to Atlantic Power Corporation
|
$(3.0)
|
$(5.1)
|
|
$3.5
|
$(47.4)
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
earnings per share:
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Atlantic Power
Corporation
|
$(0.02)
|
$(0.21)
|
|
$0.03
|
$(0.69)
|
|
Income (loss) from
discontinued operations, net of tax
|
(0.01)
|
0.17
|
|
0.00
|
0.27
|
|
Net income (loss)
attributable to Atlantic Power Corporation
|
$(0.03)
|
$(0.04)
|
|
$0.03
|
$(0.42)
|
|
Diluted earnings
(loss) earnings per share:
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Atlantic Power
Corporation
|
$(0.02)
|
$(0.21)
|
|
$0.03
|
$(0.69)
|
|
Income (loss) from
discontinued operations, net of tax
|
(0.01)
|
0.17
|
|
0.00
|
0.27
|
|
Net income (loss)
attributable to Atlantic Power Corporation
|
$(0.03)
|
$(0.04)
|
|
$0.03
|
$(0.42)
|
|
(1) Includes
contributions from the Sold Projects which are a component of
discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
Table 6 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
|
|
Six months
ended June 30,
|
|
|
|
|
|
2013
|
2012
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
$9.0
|
$(41.3)
|
|
Adjustments to
reconcile to net cash provided by operating activities
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
92.8
|
76.8
|
|
Loss of discontinued
operations
|
|
|
|
32.8
|
-
|
|
Gain on sale of
assets & other charges
|
|
|
|
(4.4)
|
-
|
|
Long-term incentive
plan expense
|
|
|
|
1.2
|
1.5
|
|
Impairment
charges
|
|
|
|
4.9
|
3.0
|
|
Gain on sale of
equity investments
|
|
|
|
-
|
(0.6)
|
|
Equity in earnings
from unconsolidated affiliates
|
|
|
|
(15.9)
|
(10.8)
|
|
Distributions from
unconsolidated affiliates
|
|
|
|
18.0
|
8.7
|
|
Unrealized foreign
exchange (gain) loss
|
|
|
|
(8.7)
|
11.8
|
|
Change in fair value
of derivative instruments
|
|
|
|
(47.7)
|
58.2
|
|
Change in deferred
income taxes
|
|
|
|
(6.5)
|
(26.0)
|
|
Change in other
operating balances
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
(3.6)
|
20.3
|
|
Inventory
|
|
|
|
(1.3)
|
(4.3)
|
|
Prepayments,
refundable income taxes and other assets
|
|
|
|
46.3
|
(9.8)
|
|
Accounts
payable
|
|
|
|
(9.4)
|
(0.4)
|
|
Accruals and other
liabilities
|
|
|
|
(10.6)
|
2.2
|
|
Cash provided by
operating activities
|
|
|
|
96.9
|
89.3
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used in) investing activities
|
|
|
|
|
|
|
Change in restricted
cash
|
|
|
|
(19.4)
|
2.3
|
|
Proceeds from sale of
assets, net
|
|
|
|
148.3
|
-
|
|
Proceeds from sale of
equity investments
|
|
|
|
-
|
24.2
|
|
Cash paid for equity
investment
|
|
|
|
-
|
(0.3)
|
|
Proceeds from
treasury grant
|
|
|
|
53.7
|
-
|
|
Biomass development
costs
|
|
|
|
(0.1)
|
(0.2)
|
|
Construction in
progress
|
|
|
|
(26.2)
|
(230.2)
|
|
Purchase of property,
plant and equipment
|
|
|
|
(5.0)
|
(0.8)
|
|
Cash provided by
(used in) investing activities
|
|
|
|
151.3
|
(205.0)
|
|
|
|
|
|
|
|
|
Cash flows (used in)
provided by financing activities
|
|
|
|
|
|
|
Proceeds from
project-level debt
|
|
|
|
20.8
|
255.3
|
|
Repayment of
project-level debt
|
|
|
|
(64.2)
|
(9.3)
|
|
Offering costs
related to tax equity
|
|
|
|
(1.0)
|
-
|
|
Payments for
revolving credit facility borrowings
|
|
|
|
(67.0)
|
(60.8)
|
|
Proceeds from
revolving credit facility borrowings
|
|
|
|
-
|
22.8
|
|
Equity contribution
from noncontrolling interest
|
|
|
|
44.6
|
-
|
|
Deferred financing
costs
|
|
|
|
-
|
(18.9)
|
|
Dividends
paid
|
|
|
|
(52.5)
|
(71.4)
|
|
Cash (used in)
provided by financing activities
|
|
|
|
(119.3)
|
117.7
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
|
128.9
|
2.0
|
|
Cash and cash
equivalents at beginning of period at discontinued
operations
|
|
|
|
6.5
|
-
|
|
Cash and cash
equivalents at beginning of period
|
|
|
|
60.2
|
60.7
|
|
Cash and cash
equivalents at end of period
|
|
|
|
$195.6
|
$62.7
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
Interest
paid
|
|
|
|
$65.3
|
$58.2
|
|
Income taxes paid,
net
|
|
|
|
$1.4
|
$1.5
|
|
Accruals for
construction in progress
|
|
|
|
$8.6
|
$25.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulation G Disclosures
Cash Available for Distribution, Payout Ratio and Cash
Distributions from Projects are not measures recognized under GAAP
and do not have standardized meanings prescribed by GAAP.
Management believes that Cash Available for Distribution,
Payout Ratio and Cash Distributions from Projects are relevant
supplemental measures of the Company's ability to earn and
distribute cash returns to investors. Reconciliations of Cash
Available for Distribution and Payout Ratio to cash flows from
operating activities and of Cash Distributions from Projects to
Project income (loss) are provided in Table 9 on page 14 of this
release. Investors are cautioned that the Company may
calculate these measures in a manner that is different from other
companies.
Project Adjusted EBITDA is defined as project income (loss) plus
interest, taxes, depreciation and amortization (including non-cash
impairment charges) and changes in fair value of derivative
instruments. Project Adjusted EBITDA is not a measure
recognized under GAAP and is therefore unlikely to be comparable to
similar measures presented by other companies and does not have a
standardized meaning prescribed by GAAP. 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 a bridge to Cash Distributions
from Projects are provided in Table 7 below and Tables 8A and 8B on
page 13, respectively. Investors are cautioned that the
Company may calculate this measure in a manner that is different
from other companies.
Atlantic Power
Corporation
Table 7 – Project
Adjusted EBITDA by segment
Unaudited
|
|
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
|
2013
|
2012
|
2013
|
2012
|
Project Adjusted
EBITDA by segment
|
|
|
|
|
Northeast
|
$26.0
|
$22.4
|
$71.9
|
$64.8
|
Southeast
(1)
|
2.4
|
2.1
|
4.5
|
4.2
|
Northwest
|
12.3
|
12.4
|
33.6
|
25.9
|
Southwest
(2)
|
19.0
|
12.6
|
35.0
|
24.7
|
Un-allocated
corporate
|
(3.5)
|
(4.1)
|
(8.2)
|
(7.7)
|
Total
|
56.2
|
45.4
|
136.8
|
111.9
|
|
|
|
|
|
Reconciliation to
project income
|
|
|
|
|
Depreciation and
amortization
|
50.6
|
41.3
|
103.0
|
81.1
|
Interest expense,
net
|
9.5
|
6.4
|
19.0
|
12.4
|
Change in the fair
value of derivative instruments
|
(26.8)
|
2.1
|
(38.3)
|
59.6
|
Other (income)
expense
|
7.3
|
3.1
|
6.4
|
3.3
|
Project income
(loss)
|
15.6
|
(7.5)
|
46.7
|
(44.5)
|
(1) Excludes the
Auburndale, Lake and Pasco, which are components of discontinued
operations.
(2) Excludes Path 15,
which is a component of discontinued operations.
Note: Table 7
presents Project Adjusted EBITDA, which is not a recognized measure
under GAAP and does not have any standardized meaning prescribed by
GAAP; therefore, this measure may not be comparable to a similar
measure presented by other companies.
|
Atlantic Power
Corporation
Table 8A – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
Six months ended
June 30, 2013
|
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
|
|
|
|
|
|
|
Northeast
|
|
|
|
|
|
|
Consolidated
|
$51.6
|
$(2.7)
|
$(6.8)
|
$(1.5)
|
$20.3
|
$56.6
|
Equity
method
|
20.3
|
(5.5)
|
(1.3)
|
-
|
(1.8)
|
16.0
|
Total
|
71.9
|
(8.2)
|
(8.1)
|
(1.5)
|
18.5
|
72.6
|
Southeast
|
|
|
|
|
|
|
Consolidated
|
0.1
|
(1.5)
|
(1.2)
|
0.2
|
2.4
|
-
|
Equity
method
|
4.4
|
-
|
-
|
-
|
(1.3)
|
3.1
|
Total
|
4.5
|
(1.5)
|
(1.2)
|
0.2
|
1.1
|
3.1
|
Northwest
|
|
|
|
|
|
|
Consolidated
|
22.1
|
(4.8)
|
(2.4)
|
(3.4)
|
(1.8)
|
9.7
|
Equity
method
|
11.5
|
(1.1)
|
(7.0)
|
(0.5)
|
5.3
|
8.2
|
Total
|
33.6
|
(5.9)
|
(9.4)
|
(3.9)
|
3.5
|
17.9
|
Southwest
|
|
|
|
|
|
|
Consolidated
|
33.0
|
-
|
(0.4)
|
0.3
|
(21.4)
|
11.5
|
Equity
method
|
2.0
|
(1.6)
|
(0.1)
|
-
|
(0.3)
|
-
|
Total
|
35.0
|
(1.6)
|
(0.5)
|
0.3
|
(21.7)
|
11.5
|
Total
consolidated
|
106.8
|
(9.0)
|
(10.8)
|
(4.4)
|
(0.5)
|
77.8
|
Total equity
method
|
38.2
|
(8.2)
|
(8.4)
|
(0.5)
|
1.9
|
27.3
|
Un-allocated
corporate
|
(8.2)
|
-
|
(1.3)
|
-
|
9.5
|
-
|
Total
|
$136.8
|
$(17.2)
|
$(20.5)
|
$(4.9)
|
$10.9
|
$105.1
|
Note: Table 8A
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
Atlantic Power
Corporation
Table 8B – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
Six months ended
June 30, 2012
|
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
|
|
|
|
|
|
|
Northeast
|
|
|
|
|
|
|
Consolidated
|
$42.5
|
$(2.0)
|
$(6.8)
|
$(0.4)
|
$5.6
|
$39.7
|
Equity
method
|
22.3
|
(11.6)
|
(2.6)
|
-
|
(3.1)
|
4.2
|
Total
|
64.8
|
(13.6)
|
(9.4)
|
(0.4)
|
2.5
|
43.9
|
Southeast
|
|
|
|
|
|
|
Consolidated
|
-
|
-
|
-
|
-
|
-
|
-
|
Equity
method
|
4.2
|
-
|
-
|
-
|
(0.7)
|
3.5
|
Total
|
4.2
|
-
|
-
|
-
|
(0.7)
|
3.5
|
Northwest
|
|
|
|
|
|
|
Consolidated
|
16.4
|
-
|
(1.1)
|
(0.5)
|
-
|
14.8
|
Equity
method
|
9.5
|
(0.8)
|
(1.5)
|
0.3
|
(1.2)
|
6.3
|
Total
|
25.9
|
(0.8)
|
(2.6)
|
(0.2)
|
(1.2)
|
21.1
|
Southwest
|
|
|
|
|
|
|
Consolidated
|
24.7
|
-
|
-
|
(0.4)
|
2.2
|
26.5
|
Equity
method
|
-
|
(1.7)
|
(0.3)
|
(0.2)
|
2.2
|
-
|
Total
|
24.7
|
(1.7)
|
(0.3)
|
(0.6)
|
4.4
|
26.5
|
Total
consolidated
|
83.6
|
(2.0)
|
(7.9)
|
(1.3)
|
7.8
|
81.0
|
Total equity
method
|
36.0
|
(14.1)
|
(4.4)
|
0.1
|
(2.8)
|
14.0
|
Un-allocated
corporate
|
(7.7)
|
-
|
-
|
-
|
7.7
|
-
|
Total
|
$111.9
|
$(16.1)
|
$(12.3)
|
$(1.2)
|
$12.7
|
$95.0
|
Note: Table 8B
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
Atlantic Power
Corporation
Table 9 – Cash
Available for Distribution (in millions of U.S.
dollars)
Unaudited
|
|
|
Three months
ended June
30,
|
|
Six
months ended
June 30,
|
|
2013
|
2012
|
|
2013
|
2012
|
Cash Distributions
from Projects
|
$50.8
|
$41.3
|
|
$105.1
|
$95.0
|
Repayment of
long-term debt
|
(11.6)
|
(10.6)
|
|
(17.2)
|
(16.1)
|
Interest expense,
net
|
(11.0)
|
(6.3)
|
|
(20.5)
|
(12.3)
|
Capital
expenditures
|
(2.8)
|
(0.8)
|
|
(4.9)
|
(1.2)
|
Other, including
changes in working capital
|
20.0
|
13.6
|
|
10.9
|
12.7
|
Project Adjusted
EBITDA
|
$56.2
|
$45.4
|
|
$136.8
|
$111.9
|
Depreciation and
amortization
|
50.6
|
41.3
|
|
103.0
|
81.1
|
Interest expense,
net
|
9.5
|
6.4
|
|
19.0
|
12.4
|
Change in the fair
value of derivative instruments
|
(26.8)
|
2.1
|
|
(38.3)
|
59.6
|
Other (income)
expense
|
7.3
|
3.1
|
|
6.4
|
3.3
|
Project income
(loss)
|
$15.6
|
$(7.5)
|
|
$46.7
|
$(44.5)
|
Administrative and
other expenses (income)
|
13.1
|
19.2
|
|
39.8
|
49.9
|
Income tax expense
(benefit)
|
0.6
|
(5.3)
|
|
(1.9)
|
(22.2)
|
Income (loss)
from discontinued operations, net of tax
|
(0.7)
|
19.3
|
|
0.2
|
30.9
|
Net income
(loss)
|
$1.2
|
$(2.1)
|
|
$9.0
|
$(41.3)
|
Adjustments to
reconcile to net cash provided by operating activities
|
18.1
|
34.4
|
|
66.5
|
122.6
|
Change in other
operating balances
|
(12.1)
|
(9.4)
|
|
21.4
|
8.0
|
Cash flows from
operating activities (1)
|
$7.2
|
$22.9
|
|
$96.9
|
$89.3
|
Project-level debt
repayments
|
(7.9)
|
(6.6)
|
|
(10.5)
|
(9.3)
|
Purchases of
property, plant and equipment
|
(2.9)
|
(0.1)
|
|
(5.1)
|
(0.8)
|
Dividends on
preferred shares of a subsidiary company
|
(3.1)
|
(3.2)
|
|
(6.3)
|
(6.4)
|
Cash Available for
Distribution
|
$(6.7)
|
$13.0
|
|
$75.0
|
$72.8
|
Total cash dividends
declared to shareholders
|
11.0
|
32.3
|
|
36.3
|
65.1
|
Payout
Ratio
|
(165)%
|
249%
|
|
48%
|
89%
|
Note: Table 9
presents Cash Distributions from Projects, Project Adjusted EBITDA,
Cash Available for Distribution and Payout Ratio, which are not
recognized measures under GAAP and do not have any standardized
meanings prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other
companies.
(1) As
discussed in the Company's quarterly report on Form 10-Q for the
fiscal quarter ended June 30, 2013, the Company reclassified $15.5
million of cash flows from operations to construction in progress,
which is included in cash flows from investing activities, for the
three months ended March 31, 2013. This increased cash flows
from operations and Cash Available for Distribution for the six
months ended June 30, 2013 by $15.5 million and lowered the Payout
Ratio for the same period. The reclassification had no impact
on results for the three months ended June 30, 2013.
|
Atlantic Power
Corporation
Table 10 – 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,
|
|
|
2013
|
2012
|
2013
|
2012
|
Project Adjusted
EBITDA by segment
|
|
|
|
|
|
Northeast
|
Accounting
|
|
|
|
|
|
Cadillac
|
Consolidated
|
$2.4
|
$2.6
|
$4.6
|
$4.4
|
|
Curtis
Palmer
|
Consolidated
|
11.4
|
6.8
|
18.7
|
15.8
|
|
Nipigon
|
Consolidated
|
2.3
|
2.6
|
8.6
|
7.2
|
|
North Bay
|
Consolidated
|
(0.8)
|
(0.4)
|
4.5
|
4.4
|
|
Tunis
|
Consolidated
|
(0.8)
|
0.9
|
4.1
|
6.4
|
|
Other (3
projects)
|
Consolidated
|
2.8
|
(1.9)
|
11.1
|
4.3
|
|
Chambers
|
Equity
method
|
4.3
|
8.1
|
10.2
|
14.0
|
|
Selkirk
|
Equity
method
|
4.4
|
3.7
|
10.1
|
8.3
|
|
Total
|
|
26.0
|
22.4
|
71.9
|
64.8
|
Southeast
|
|
|
|
|
|
|
Piedmont
|
Consolidated
|
0.1
|
-
|
0.1
|
-
|
|
Orlando
|
Equity
method
|
2.3
|
2.1
|
4.4
|
4.2
|
|
Total
|
|
2.4
|
2.1
|
4.5
|
4.2
|
Northwest
|
|
|
|
|
|
|
Meadow
Creek
|
Consolidated
|
3.5
|
-
|
6.5
|
-
|
|
Rockland
|
Consolidated
|
2.0
|
0.7
|
4.5
|
1.6
|
|
Williams
Lake
|
Consolidated
|
(0.3)
|
2.9
|
8.4
|
9.3
|
|
Other (2
projects)
|
Consolidated
|
1.5
|
4.2
|
2.7
|
5.5
|
|
Other (4 projects)
(1)
|
Equity
method
|
5.6
|
4.6
|
11.5
|
9.5
|
|
Total
|
|
12.3
|
12.4
|
33.6
|
25.9
|
Southwest
|
|
|
|
|
|
|
Canadian
Hills
|
Consolidated
|
7.8
|
-
|
14.6
|
-
|
|
Manchief
|
Consolidated
|
3.9
|
3.2
|
7.9
|
7.5
|
|
Other (6
projects)
|
Consolidated
|
6.3
|
8.5
|
10.5
|
17.2
|
|
Other (2
projects)
|
Equity
method
|
1.0
|
0.9
|
2.0
|
-
|
|
Total
|
|
19.0
|
12.6
|
35.0
|
24.7
|
Totals
|
|
|
|
|
|
Consolidated
projects
|
|
42.1
|
30.1
|
106.8
|
83.6
|
Equity method
projects
|
|
17.6
|
19.4
|
38.2
|
36.0
|
Un-allocated
corporate
|
|
(3.5)
|
(4.1)
|
(8.2)
|
(7.7)
|
Total Project
Adjusted EBITDA
|
|
$56.2
|
$45.4
|
$136.8
|
$111.9
|
|
|
|
|
|
|
Reconciliation to
project income (loss)
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$50.6
|
$41.3
|
$103.0
|
$81.1
|
|
Interest expense,
net
|
|
9.5
|
6.4
|
19.0
|
12.4
|
|
Change in the fair
value of derivative instruments
|
|
(26.8)
|
2.1
|
(38.3)
|
59.6
|
|
Other (income)
expense
|
|
7.3
|
3.1
|
6.4
|
3.3
|
Project income
(loss)
|
|
$15.6
|
$(7.5)
|
$46.7
|
$(44.5)
|
(1) Goshen North is included in 2013 results, but is
excluded from 2012 results as it was acquired in December 2012;
therefore, 2012 results include only three equity method projects
in the Northwest segment.
Note: Table 10
presents Project Adjusted EBITDA, which is not a recognized measure
under GAAP and does not have any standardized meaning prescribed by
GAAP; therefore, this measure may not be comparable to a similar
measure presented by other companies. The Company has not
reconciled non-GAAP financial measures relating to individual
projects to the directly comparable GAAP measures due to the
difficulty in making the relevant adjustments on an individual
project basis.
|
SOURCE Atlantic Power Corporation