BOSTON, Nov. 7, 2013 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today released its results for the three and nine months
ended September 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 September 2013 Financial
Highlights
- Project income increased $81.0
million from YTD September
2012 to $57.3 million
- Cash flows from operating activities, including discontinued
operations, increased $19.2 million
from YTD September 2012 to
$143.3 million
- Project Adjusted EBITDA increased $42.6
million from YTD September
2012 to $213.3 million
- Cash Available for Distribution, including discontinued
operations, increased $8.9 million
from YTD September 2012 to
$109.9 million
- Payout Ratio for the nine months ended September 30, 2013 was 43%
Q3 2013 Financial Highlights
- Project income decreased $14.9
million from Q3 2012 to $4.8
million, primarily due to non-cash goodwill impairments
totaling $34.9 million and a negative
mark-to-market adjustment at Nipigon of $8.8
million, partly offset by a $30
million gain on the sale of the Gregory project
- Cash flows from operating activities increased $11.7 million from Q3 2012 to $46.4 million, primarily due to higher Project
Adjusted EBITDA
- Project Adjusted EBITDA increased $18.8
million from Q3 2012 to $76.2
million, primarily from new renewable energy projects and
several projects in the Northeast segment
- Cash Available for Distribution increased $9.6 million from Q3 2012 to $37.9 million, mostly due to higher operating
cash flows partly offset by higher project capex
Recent Developments
- Narrowed previous guidance range for 2013 Project Adjusted
EBITDA of $250 to $275 million to
$260 to $275 million
- Reaffirmed guidance for 2013 Cash Available for Distribution
and Payout Ratio
- Confirmed $11 million
Nipigon steam generator upgrade
project for 2014
"Our operating and financial results this year have been strong,
with contributions from our new projects such as Canadian Hills and
Meadow Creek as well as increased
contributions from several of our existing projects in the
Northeast segment and elsewhere. In addition, our cash
position improved during the quarter," said Barry Welch, President and CEO of Atlantic
Power. "We continue to evaluate investments to improve plant
efficiency and increase cash returns, and we recently committed to
a significant capex project at Nipigon where we expect an attractive return
on our investment. We are considering various potential
initiatives and options aimed at addressing our near-term debt
maturities, reducing debt levels, improving our financial
flexibility, optimizing our assets, and reducing expenses.
These are our highest priority objectives."
Atlantic Power
Corporation Table 1 –
Selected Results (in
millions of U.S. dollars, except as otherwise
stated) Unaudited
|
|
Three months
ended September
30,
|
Nine months
ended September
30,
|
|
2013
|
2012
|
2013
|
2012
|
Excluding results
from discontinued operations(1)
|
|
|
|
|
Project
revenue
|
$141.8
|
$106.3
|
$421.0
|
$326.4
|
Project income
(loss)
|
4.8
|
19.7
|
57.3
|
(23.7)
|
Project Adjusted
EBITDA (2)
|
76.2
|
57.4
|
213.3
|
170.7
|
Cash Distributions
from Projects (2)
|
67.4
|
58.1
|
172.5
|
153.1
|
Aggregate power
generation (thousands of Net MWh)
|
2,183.9
|
1,513.6
|
6,172.5
|
4,400.2
|
Weighted average
availability
|
94.9%
|
96.7%
|
94.3%
|
95.5%
|
Including results
from discontinued operations
|
|
|
|
|
Cash flows from
operating activities
|
$46.4
|
$34.7
|
$143.3
|
$124.1
|
Cash Available for
Distribution (2)
|
37.9
|
28.3
|
109.9
|
101.0
|
Total cash dividends
declared to shareholders
|
11.0
|
34.0
|
47.2
|
99.1
|
Payout Ratio
(2)
|
29%
|
120%
|
43%
|
98%
|
(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 nine months ended September 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.
|
|
During the three
months ended September 30, 2013, the Company classified its
investment in Rollcast, which is a component of the un-allocated
corporate segment, as a held for sale business based on a plan to
divest its investment in Rollcast within the next twelve months.
Accordingly, the assets and liabilities of Rollcast have been
presented separately as held for sale in the consolidated balance
sheet at September 30, 2013 and the project's net loss is recorded
as loss from discontinued operations, net of tax, in the
consolidated statements of operations for the three and nine months
ended September 30, 2013 and 2012. Results from Rollcast are
treated the same as the Sold Projects as described
above.
|
|
(2)
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.
|
Financial Review for the Three and Nine Months Ended
September 30, 2013
GAAP Measures
Cash flows from operating activities, which include cash
flows from discontinued operations, increased by $11.7 million to $46.4
million and by $19.2 million
to $143.3 million for the three and
nine months ended September 30, 2013,
respectively, compared to $34.7
million and $124.1 million for
the same periods in 2012, respectively. Factors positively
contributing to the three-month performance include cash flows from
new projects added in December 2012,
and in particular the Canadian Hills and Meadow Creek wind projects, increased cash
flows from several existing projects and increased cash flows from
the Company's equity method investments. The nine-month
results were positively influenced by the same factors and by
realized foreign exchange gains on forward contract settlements,
including a $9.4 million gain from
contracts terminated in April 2013. These positive factors
were partially offset by reduced cash flow contributions from
assets that were divested in April
2013, including costs of approximately $3 million associated with these dispositions,
and higher legal expenses.
Project income decreased by $14.9
million to $4.8 million and
increased by $81.0 million to
$57.3 million for the three and nine
months ended September 30, 2013,
respectively, compared to project income of $19.7 million and project loss of $23.7 million for the same periods in 2012,
respectively. The decrease in Project income for the
three-month period ended September 30,
2013 from the prior-year period relates primarily to
non-cash goodwill impairments at four projects totaling
$34.9 million and an $8.8 million mark-to-market decrease in the fair
value of a gas purchase agreement at Nipigon, partially offset by a $30 million gain on the sale of the Company's 17%
interest in the Gregory project in August 2013. The increase
in Project income for the nine months ended September 30, 2013 over the prior-year period
relates primarily to the project income from the sale of Gregory as
described above, additional project income from an increased
interest in Rockland and new
projects added in December 2012,
partially offset by goodwill impairments as described above and
non-cash, mark-to-market adjustments to reflect the fair value of
gas purchase agreements for three of the Company's gas-fired
projects in Ontario and the fair
value of interest rate swaps in the Company's Southeast and
Northwest segments. 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 $18.8
million to $76.2 million and
by $42.6 million to $213.3 million for the three and nine months
ended September 30, 2013,
respectively, compared to $57.4
million and $170.7 million for
the same periods in 2012, respectively. The increases in
Project Adjusted EBITDA over the prior-year periods are primarily
due to contributions from new projects added in 2012 and 2013,
which include $3.7 million and
$18.4 million from Canadian Hills,
$3.9 million and $10.4 million from Meadow Creek, and $3.5
million and $3.7 million from
Piedmont for the three and nine
months ended September 30, 2013,
respectively. Several projects in the Company's Northeast
segment also posted higher operating results for the three- and
nine-month periods ended September
30, 2013. 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
$9.3 million to $67.4 million and by $19.4
million to $172.5 million for
the three and nine months ended September
30, 2013, respectively, compared to $58.1 million and $153.1
million for the same periods in 2012, respectively.
Increased distributions from Canadian Hills and an initial
distribution from Meadow Creek,
both of which were added in December
2012, were the primary factors for the increase in Cash
Distributions from Projects in the three-month period ended
September 30, 2013 over the
prior-year period. The increase in Cash Distributions from
Projects for the nine-month period ended September 30, 2012 over the prior-year period was
also helped by increased distributions from the Company's projects
in Ontario, which benefited from
higher waste heat. These increases were partly offset by
decreased distributions in the Southwest segment for the YTD
September 2013 compared to the same
prior-year period. 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, increased by $9.6 million to $37.9
million and by $8.9 million to
$109.9 million for the three and nine
months ended September 30, 2013,
respectively, compared to $28.3
million and $101.0 million for
the same periods in 2012, respectively. The increase in Cash
Available for Distribution for the three months ended September 30, 2013 over the prior-year period is
primarily due to an increase in cash flows from operating
activities (as described earlier in the section GAAP Measures) and
lower project-level debt repayments, partially offset by planned
higher capital expenditures at Curtis Palmer for new turbines and
at Meadow Creek for completion of
punch list items, and distributions to noncontrolling interests.
The increase in Cash Available for Distribution for the nine months
ended September 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 as discussed above and distributions to noncontrolling
interests.
Payout Ratio for the three and nine months ended
September 30, 2013 was 29% and 43%,
respectively, compared to 120% and 98%, respectively, in the
comparable prior-year periods. The decrease in the Payout
Ratio for both periods is a result of an increase in Cash Available
for Distribution as discussed in the preceding paragraph and the
impact of a lower dividend rate, which first became effective in
March 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).
Adjustment to calculation of Cash Available for Distribution
and Payout Ratio. During the three months ended
September 30, 2013, the Company
adjusted the calculation for Cash Available for Distribution to
exclude distributions made to noncontrolling interests because the
Company believes that it more accurately presents the cash
available to be distributed to its common shareholders.
Distributions to noncontrolling interests primarily will include
distributions, if any, to the tax equity investors at Canadian
Hills and to the other 50% owner of Rockland. This adjustment
results in lower Cash Available for Distribution and higher Payout
Ratios than under the previous method of calculation. The
change is already reflected in the Cash Available for Distribution
and Payout Ratios for the three and nine months ended September 30, 2013 and 2012 discussed in the
preceding paragraphs.
The Cash Available for Distribution and Payout Ratios for the
three and six months ended June 30,
2013 that have previously been reported were adjusted to
reflect the change in calculation method. For the three and
six months ended June 30, 2013, Cash
Available for Distribution decreased from $(6.7) million to $(8.7)
million and from $75.0 million to
$72.1 million, respectively. The Payout Ratio for the
three months ended June 30, 2013 was
previously reported as (165)% and was adjusted to (126)%. For
the six months ended June 30, 2013,
the change resulted in an increase in the Payout Ratio from 48% to
50%. Cash Available for Distribution and Payout Ratio did not
change materially for the three months ended March 31, 2013. The 2012 numbers for Cash
Available for Distribution and Payout Ratios were not affected by
this change as there were no distributions to noncontrolling
interests in
2012.
Sold Projects/Discontinued Operations
Financial
results for the three and nine months ended September 30, 2013 and September 30, 2012 are affected by the
classification of the Company's interests in the assets held for
sale as discontinued operations; accordingly, the revenues, project
income, Project Adjusted EBITDA and Cash Distributions from
Projects of the assets held for sale have been classified as
discontinued operations and are excluded from continuing
operations results. The results of the assets held for sale
have been separately stated in the Consolidated Statements of
Operations as "Net income (loss) from discontinued operations, net
of tax".
Under GAAP, the cash flow attributable to the assets held for
sale 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 assets
held for sale.
Project income (loss) attributable to the assets held for
sale was $(0.4) million and
$(6.1) million for the three and nine
months ended September 30, 2013,
compared to $19.0 million and
$48.8 million, respectively, for the
same periods in 2012.
Project Adjusted EBITDA attributable to the assets held
for sale was $(0.3) million and
$35.3 million for the three and nine
months ended September 30, 2013,
respectively, compared to $26.7
million and $79.5 million,
respectively, for the same periods in 2012.
Cash Available for Distribution from the assets held for
sale for the nine months ended September 30,
2013 was $37 million compared
to $48 million for the same period in
2012.
The Delta-Person generating station ("Delta-Person"), which is
under a purchase and sale agreement, and the Gregory project, which
was sold in August 2013, are
included in the Company's financial results from continuing
operations for the three and nine months ended September 30, 2013 and 2012, as the projects are
accounted for under the equity method of accounting.
The Company has not reconciled non-GAAP financial measures
relating to the assets held for sale to the directly comparable
GAAP measures due to the difficulty in making the relevant
adjustments on an individual project basis.
Supplementary Financial Tables
For further
information, attached to this news release is a:
- Summary of Project Adjusted EBITDA by segment for the three and
nine months ended September 30, 2013
and 2012 (Table 7) with a reconciliation to Project income
(loss);
- Bridge from Project Adjusted EBITDA to Cash Distributions from
Projects by segment for the nine months ended September 30, 2013 (Table 8A) and the nine months
ended September 30, 2012 (Table
8B);
- Reconciliation of Cash Distributions from Projects and Project
Adjusted EBITDA to Net income (loss) for the three and nine months
ended September 30, 2013 and 2012
(Table 9);
- Reconciliation of Cash Available for Distribution and Payout
Ratio to cash flows from operating activities for the three and
nine months ended September, 2013 and 2012 (Table 9); and
- 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 nine months ended September 30,
2013 and 2012 (Table 10).
Updated 2013 Guidance
- Annual Project Adjusted EBITDA guidance of $250 to $275 million narrowed to $260 to $275 million
- Annual Cash Available for Distribution guidance of $85 to $100 million reaffirmed
- Annual Payout Ratio guidance of 65% to 75% reaffirmed
Project Adjusted EBITDA
The Company is
updating its previous guidance of $250 to
$275 million for 2013 Project Adjusted EBITDA to
$260 to $275 million. The
narrower range reflects the results for the year to date and
expectations for the balance of the year. (Note that Project
Adjusted EBITDA attributable to discontinued operations is excluded
from both the three and nine months ended September 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 nine months ended September 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 assets held for sale to
the directly comparable GAAP measures due to the difficulty in
making the relevant adjustments on an individual project
basis.)
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 considering various potential initiatives and
options aimed at addressing its near-term debt maturities, reducing
debt levels, improving its financial flexibility, optimizing its
assets, and reducing expenses. Although the Company is still in the
process of evaluating these initiatives and options, one or more of
such potential initiatives or options, if implemented, would
significantly increase the 2014 Payout Ratio. As a
consequence, the Company will not be in a position to provide
updated guidance as to the 2014 Payout Ratio until it has greater
visibility on these matters, which is not expected until the
release of the Company's 2013 Form 10-K.
See Table 2 for full-year 2013 guidance provided on November 7, 2013 as compared to initial 2013
guidance provided on February 28,
2013 and actual results for the nine months ending
September 30, 2013.
Atlantic Power
Corporation Table 2 –
2013 Annual Guidance v. results for the nine months ended September
30, 2013 (in millions of
U.S. dollars, except as otherwise stated)
|
|
Initial
2013 Annual
Guidance
|
Revised
2013 Annual
Guidance
|
Nine months
ended September 30,
2013
|
Unaudited
|
(2/28/13)
|
(11/7/13)
|
(Actual)
|
Project Adjusted
EBITDA (1)(2)
|
$250 -
$275
|
$260 -
$275
|
$213.3
|
Cash Available for
Distribution (2)(3)
|
$85 - $100
|
$85 - $100
|
$109.9
|
Total cash dividends
declared to shareholders
|
$60
|
$60
|
$47.2
|
Payout Ratio,
including discontinued operations (2)(3)
|
65% - 75%
|
65% - 75%
|
43%
|
(1) The Sold Projects
and Rollcast have been classified as discontinued operations.
Accordingly, the Project Adjusted EBITDA of these assets has been
classified as discontinued operations for the three and nine months
ended September 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 measures. 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 and Rollcast 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 and
Rollcast.
|
Liquidity
At September 30, 2013, the Company
had $171 million of unrestricted
cash. During the fourth quarter of 2013, the Company expects
to use cash to make an additional equity investment in Piedmont and make cash outlays associated with
recent investment commitments at the Company's Nipigon and North Island projects. The
anticipated closing of the Delta-Person sale and receipt of sale
proceeds has been delayed into the first quarter of 2014.
Accordingly, the Company now expects to have approximately
$145 million of unrestricted cash at
year-end 2013. These figures are net of a $75 million cash reserve required under the
Company's amended credit facility. The Company also has
borrowing capacity under its amended credit facility of
$25 million. Depending on the
outcome of the Company's discussions with an existing gas supplier,
it may be required to use cash, letters of credit or a combination
of both to post additional collateral. See Table 3 for
projected year-end 2013 liquidity (which does not reflect possible
reductions due to additional postings of collateral) compared to
the actual level at September 30,
2013.
Atlantic Power
Corporation Table 3 –
Liquidity (in millions of U.S. dollars)
|
Unaudited
|
September 30,
2013
|
Projected
Year-end 2013
|
Unrestricted cash
(1)
|
$171
|
$145
|
Borrowing capacity
under revolver (2)
|
$25
|
$25
|
Total Liquidity
(3)
|
$196
|
$170
|
(1)
Includes $13 million project-level cash for working capital
needs.
|
(2)
Excludes letter of credit capacity of $150 million, of which $91.2
million was issued in letters of credit but not drawn as of
September 30, 2013.
|
(3) The
projected year-end total liquidity amount may be further reduced as
a result of the outcome of the Company's discussions with a natural
gas supplier for additional security in the form of cash, letters
of credit or a combination of both.
|
Business Update
Piedmont Update
The Company continues to invest in improvements to increase
reliability and improve efficiency of its Piedmont Green Power
project, with a planned outage completed in October. All
performance obligations continue to be met under the Power Purchase
Agreement (PPA). The availability factor of the project
during the third quarter averaged 93%.
The Company is addressing a dispute with contractor Zachry
Industrial, Inc. ("Zachry"), about its performance obligations
under the turnkey engineering, procurement and construction
contract at Piedmont; the dispute
has entered the arbitration process and an arbitration hearing has
been tentatively scheduled in the latter part of 2014.
Discussions are in process with the project lenders regarding
conversion of the project's construction loan ($76.6 million outstanding) into a term loan,
which is anticipated to close in the fourth quarter of 2013.
In order to facilitate the conversion of the term loan, the Company
expects to make an additional investment in Piedmont to enhance the credit quality of the
project.
As previously disclosed, 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 after gaining additional operating history.
However, the project is unlikely to distribute significant
cash in 2014 due to the dispute described above and the expected
reserves that will be required under Piedmont's term loan.
Nipigon Capex Project
The Company recently approved
an investment to upgrade the steam generator at its 40 MW Nipigon
combined-cycle facility in Ontario. Required approvals for
this project have been received. Capex outlays for the
project have begun in the fourth quarter of 2013, with an
outage to undertake the work scheduled for the fall of 2014.
The total capex for the project is expected to be approximately
$11 million, most of which will be
incurred in 2014.
2013 Major Maintenance Forecast
The Company now
expects to reinvest approximately $40
million in 2013 in its portfolio in the form of project
capital expenditures and major maintenance expenses, which is
increased from its previous expectation of $30 to $35
million. The additional investment is part of the
Company's effort to identify optimization initiatives at its
existing businesses that increase shareholder value. Through
September 30, 2013, the Company has
already reinvested $29.6
million. Significant expenditures incurred or to be
incurred in the fourth quarter not included in the original
forecast are for improvements at the Piedmont project undertaken during an outage
in October, and outlays associated with the Nipigon steam generator project and a planned
2014 outage at the North Island project to increase its
interconnection capacity from 38 MW to 42 MW.
Non-Core Asset Sales
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 first quarter of 2014,
subject to receipt of all required approvals, and expects to
receive net cash proceeds of approximately $9 million.
As previously announced, on August 7,
2013, the Company, along with its partners, completed the
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.
In addition, during the three months ended September 30, 2013, the Company initiated and
approved a plan to divest its 60% interest in Rollcast.
Investor Conference Call and Webcast
A telephone
conference call hosted by Atlantic Power's management team will be
held on Friday, November 8, 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: 1-888-317-6003; Canada Toll Free: 1-866-284-3684;
International Toll: +1 412-317-6016. Participants will need
to provide access code 6007785 to enter the conference
call. The conference call will also be broadcast over
Atlantic Power's website, with an accompanying slide presentation.
Please call or log in 10 minutes prior to the call. The telephone
numbers to listen to the conference call after it is completed
(Instant Replay) are U.S. Toll Free: 1-877-344-7529; Canada Toll
Free 1-855-669-9658; International Toll: +1-412-317-0088. Please
enter conference call number 10034465. 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 3,020 MW in which its aggregate ownership interest is
approximately 2,100 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
$260 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 Company will have approximately $145
million available excess cash at year-end;
- during the fourth quarter of 2013, the Company will use cash to
make additional equity investments in Piedmont and make cash outlays associated with
recent investment commitments at Nipigon and North Island;
- the Company may be required to use cash and/or letters of
credit as additional collateral with an existing counterparty;
- 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 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;
- total capex for the investment upgrade at Nipigon will be approximately $11 million and the new steam generator at
Nipigon will result in improved
Project Adjusted EBITDA and cash flows beginning in
2015;
- the sale of Delta-Person will successfully close in the first
quarter of 2014 with net cash proceeds received by the Company of
$9 million;
- the outcome of negotiations for the divestiture of Rollcast and
the timing of such divestiture;
- total cash dividends declared to shareholders in 2013 will be
approximately $60 million;
- the Company is considering various potential initiatives and
options aimed at addressing its near-term debt maturities, reducing
debt levels, improving its financial flexibility, optimizing its
assets, and reducing expenses which, if implemented, would
significantly increase the Payout Ratio; 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)
|
|
September
30,
|
December
31,
|
|
2013
|
2012
|
Assets
|
(Unaudited)
|
|
Current
assets:
|
Cash and cash
equivalents
|
$170.7
|
$60.2
|
Restricted
cash
|
119.8
|
28.6
|
Accounts
receivable
|
63.3
|
58.5
|
Current portion of
derivative instruments asset
|
0.3
|
9.5
|
Inventory
|
18.3
|
16.9
|
Prepayments and other
current assets
|
13.3
|
13.4
|
Security
deposits
|
-
|
19.0
|
Assets held for
sale
|
0.5
|
351.4
|
Refundable income
taxes
|
1.9
|
4.2
|
Total current
assets
|
388.1
|
561.7
|
|
Property, plant and
equipment, net
|
1,873.9
|
2,055.5
|
Equity investments in
unconsolidated affiliates
|
404.5
|
428.7
|
Other intangible
assets, net
|
471.1
|
524.9
|
Goodwill
|
296.3
|
334.7
|
Derivative
instruments asset
|
9.5
|
11.1
|
Other
assets
|
53.3
|
86.1
|
Total
assets
|
$3,496.7
|
$4,002.7
|
|
Liabilities and
Shareholder's Equity
|
Current
liabilities:
|
Accounts
payable
|
$11.1
|
$17.8
|
Accrued
interest
|
30.0
|
19.0
|
Other accrued
liabilities
|
49.0
|
73.7
|
Senior credit
facility
|
-
|
67.0
|
Current portion of
long-term debt
|
206.7
|
121.2
|
Current portion of
derivative instruments liability
|
32.9
|
33.0
|
Dividends
payable
|
3.9
|
11.5
|
Liabilities held for
sale
|
0.1
|
189.0
|
Other current
liabilities
|
6.0
|
3.3
|
Total current
liabilities
|
339.7
|
535.5
|
|
Long-term
debt
|
1,274.1
|
1,459.1
|
Convertible
debentures
|
414.1
|
424.2
|
Derivative
instruments liability
|
87.0
|
118.1
|
Deferred income
taxes
|
151.2
|
164.0
|
Power purchase and
fuel supply agreement liabilities, net
|
40.3
|
44.0
|
Other non-current
liabilities
|
69.3
|
71.4
|
Commitments and
contingencies
|
-
|
-
|
Total
liabilities
|
2,375.7
|
2,816.3
|
|
Equity
|
Common shares, no par
value, unlimited authorized shares;
120,044,879 and
119,446,865 issued and outstanding at
September 30, 2013
and December 31, 2012, respectively
|
1,285.7
|
1,285.5
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Accumulated other
comprehensive income (loss)
|
(8.7)
|
9.4
|
Retained
deficit
|
(649.6)
|
(565.2)
|
Total Atlantic Power
Corporation shareholders' equity
|
848.7
|
951.0
|
Noncontrolling
interest
|
272.3
|
235.4
|
Total
equity
|
1,121.0
|
1,186.4
|
Total liabilities and
equity
|
$3,496.7
|
$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 September
30,
|
Nine months
ended September
30,
|
|
2013
|
2012
|
2013
|
2012
|
Project
revenue:
|
Energy
sales
|
$73.4
|
$49.6
|
$228.6
|
$159.0
|
Energy capacity
revenue
|
51.1
|
42.8
|
132.2
|
117.3
|
Other
|
17.3
|
13.9
|
60.2
|
50.1
|
|
141.8
|
106.3
|
421.0
|
326.4
|
|
|
|
|
|
Project
expenses:
|
|
|
|
|
Fuel
|
47.2
|
40.1
|
148.8
|
123.6
|
Operations and
maintenance
|
38.0
|
26.5
|
112.3
|
88.0
|
Development
|
1.4
|
-
|
4.9
|
-
|
Depreciation and
amortization
|
42.2
|
30.6
|
125.7
|
87.3
|
|
128.8
|
97.2
|
391.7
|
298.9
|
Project other income
(expense):
|
|
|
|
|
Change in fair value
of derivative instruments
|
(3.5)
|
10.7
|
33.4
|
(51.3)
|
Equity in earnings of
unconsolidated affiliates
|
39.1
|
4.0
|
55.0
|
12.4
|
Interest expense,
net
|
(9.0)
|
(4.1)
|
(25.7)
|
(12.3)
|
Impairment of
goodwill
|
(34.9)
|
-
|
(34.9)
|
-
|
Other, net
|
0.1
|
-
|
0.2
|
-
|
|
(8.2)
|
10.6
|
28.0
|
(51.2)
|
Project income
(loss)
|
4.8
|
19.7
|
57.3
|
(23.7)
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
Administration
|
8.4
|
6.3
|
28.5
|
22.0
|
Interest,
net
|
27.5
|
25.8
|
78.7
|
69.3
|
Foreign exchange loss
(gain)
|
9.1
|
7.7
|
(12.9)
|
4.4
|
Other expense
(income), net
|
-
|
0.3
|
(9.5)
|
(5.7)
|
|
45.0
|
40.1
|
84.8
|
90.0
|
Loss from continuing
operations before income taxes
|
(40.2)
|
(20.4)
|
(27.5)
|
(113.7)
|
Income tax expense
(benefit)
|
-
|
3.1
|
(1.9)
|
(19.1)
|
Loss from continuing
operations
|
(40.2)
|
(23.5)
|
(25.6)
|
(94.6)
|
Net income (loss)
from discontinued operations, net of tax (1)
|
(0.4)
|
19.0
|
(6.1)
|
48.8
|
Net loss
|
(40.6)
|
(4.5)
|
(31.7)
|
(45.8)
|
Net loss attributable
to noncontrolling interest
|
(2.5)
|
(0.4)
|
(3.3)
|
(0.7)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
3.2
|
3.4
|
9.5
|
9.8
|
Net loss attributable
to Atlantic Power Corporation
|
$(41.3)
|
$(7.5)
|
$(37.9)
|
$(54.9)
|
|
|
|
|
|
Basic earnings (loss)
earnings per share:
|
|
|
|
|
Loss from continuing
operations attributable to Atlantic Power Corporation
|
$(0.34)
|
$(0.22)
|
$(0.27)
|
$(0.90)
|
Income (loss) from
discontinued operations, net of tax
|
(0.00)
|
0.16
|
(0.05)
|
0.42
|
Net loss attributable
to Atlantic Power Corporation
|
$(0.34)
|
$(0.06)
|
$(0.32)
|
$(0.48)
|
Diluted earnings
(loss) earnings per share:
|
|
|
|
|
Loss from continuing
operations attributable to Atlantic Power Corporation
|
$(0.34)
|
$(0.22)
|
$(0.27)
|
$(0.90)
|
Income (loss) from
discontinued operations, net of tax
|
(0.00)
|
0.16
|
(0.05)
|
0.42
|
Net loss attributable
to Atlantic Power Corporation
|
$(0.34)
|
$(0.06)
|
$(0.32)
|
$(0.48)
|
(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)
|
|
Nine months ended
September 30,
|
Unaudited
|
2013
|
2012
|
Cash flows from
operating activities:
|
|
|
Net loss
|
$(31.7)
|
$(45.8)
|
Adjustments to
reconcile to net cash provided by operating activities
|
|
|
Depreciation and
amortization
|
135.0
|
117.5
|
Loss of discontinued
operations
|
32.8
|
-
|
(Gain) loss on sale
of assets & other charges
|
(4.6)
|
0.8
|
Long-term incentive
plan expense
|
1.7
|
2.3
|
Impairment
charges
|
39.8
|
3.0
|
Gain on sale of
equity investments
|
(30.4)
|
(0.6)
|
Equity in earnings
from unconsolidated affiliates
|
(24.6)
|
(14.8)
|
Distributions from
unconsolidated affiliates
|
28.5
|
26.8
|
Unrealized foreign
exchange loss
|
1.5
|
21.7
|
Change in fair value
of derivative instruments
|
(44.1)
|
41.0
|
Change in deferred
income taxes
|
(11.9)
|
(24.4)
|
Change in other
operating balances
|
|
|
Accounts
receivable
|
4.5
|
(2.9)
|
Inventory
|
(1.5)
|
(5.5)
|
Prepayments,
refundable income taxes and other assets
|
54.2
|
(13.2)
|
Accounts
payable
|
(11.9)
|
14.9
|
Accruals and other
liabilities
|
6.0
|
3.3
|
Cash provided by
operating activities
|
143.3
|
124.1
|
|
Cash flows provided
by (used in) investing activities
|
|
|
Change in restricted
cash
|
(99.1)
|
(105.5)
|
Proceeds from sale of
assets and equity investments, net
|
183.0
|
27.9
|
Cash paid for equity
investment
|
-
|
(0.3)
|
Proceeds from
treasury grant
|
103.2
|
-
|
Biomass development
costs
|
(0.1)
|
(0.4)
|
Construction in
progress
|
(32.2)
|
(336.0)
|
Purchase of property,
plant and equipment
|
(7.2)
|
(1.2)
|
Cash provided by
(used in) investing activities
|
147.6
|
(415.5)
|
|
Cash flows (used in)
provided by financing activities
|
|
|
Proceeds from
issuance of convertible debentures
|
-
|
130.0
|
Proceeds from
issuance of equity, net of offering costs
|
-
|
67.7
|
Proceeds from
project-level debt
|
20.8
|
261.3
|
Repayment of
project-level debt
|
(115.4)
|
(12.1)
|
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
|
(0.5)
|
(25.3)
|
Dividends paid to
common shareholders
|
(54.2)
|
(108.2)
|
Dividends paid to
noncontrolling interests
|
(13.9)
|
-
|
Cash (used in)
provided by financing activities
|
(186.6)
|
275.4
|
|
Net increase
(decrease) in cash and cash equivalents
|
104.3
|
(16.0)
|
Less cash at
discontinued operations
|
(0.3)
|
(1.8)
|
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
|
$170.7
|
$42.9
|
|
Supplemental cash
flow information
|
|
|
Interest
paid
|
$87.0
|
$77.7
|
Income taxes paid,
net
|
$4.6
|
$3.1
|
Accruals for
construction in progress
|
$8.3
|
$40.1
|
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 15 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 14, 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 September
30,
|
Nine months
ended
September 30,
|
|
2013
|
2012
|
2013
|
2012
|
Project Adjusted
EBITDA by segment
|
|
|
|
|
Northeast
|
$24.9
|
$20.3
|
$96.8
|
$85.2
|
Southeast
(1)
|
5.9
|
2.3
|
10.4
|
6.5
|
Northwest
|
19.4
|
12.6
|
53.0
|
38.5
|
Southwest
(2)
|
29.5
|
23.4
|
64.5
|
48.0
|
Un-allocated
corporate (3)
|
(3.5)
|
(1.2)
|
(11.4)
|
(7.5)
|
Total
|
76.2
|
57.4
|
213.3
|
170.7
|
|
|
|
|
|
Reconciliation to
project income
|
|
|
|
|
Depreciation and
amortization
|
51.4
|
41.8
|
154.5
|
123.0
|
Interest expense,
net
|
10.6
|
5.8
|
30.5
|
18.1
|
Change in the fair
value of derivative instruments
|
3.5
|
(10.8)
|
(34.8)
|
48.9
|
Other
expense
|
5.9
|
0.9
|
5.8
|
4.4
|
Project income
(loss)
|
$4.8
|
$19.7
|
$57.3
|
$(23.7)
|
(1) Excludes the
Florida Projects, which are components of discontinued
operations.
(2) Excludes Path 15,
which is a component of discontinued operations.
(3) Excludes Rollcast
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) Nine
months ended September 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
|
$65.7
|
$(1.8)
|
$(10.2)
|
$(2.6)
|
$18.3
|
$69.4
|
Equity
method
|
31.1
|
(10.4)
|
(0.9)
|
(0.7)
|
1.5
|
20.6
|
Total
|
96.8
|
(12.2)
|
(11.1)
|
(3.3)
|
19.8
|
90.0
|
Southeast
|
|
|
|
|
|
|
Consolidated
|
3.7
|
(1.5)
|
(2.6)
|
-
|
0.4
|
-
|
Equity
method
|
6.7
|
-
|
-
|
-
|
(0.7)
|
6.0
|
Total
|
10.4
|
(1.5)
|
(2.6)
|
-
|
(0.3)
|
6.0
|
Northwest
|
|
|
|
|
|
|
Consolidated
|
36.0
|
(4.9)
|
(10.5)
|
(4.4)
|
5.7
|
21.9
|
Equity
method
|
17.0
|
(1.7)
|
(3.6)
|
(1.3)
|
2.4
|
12.8
|
Total
|
53.0
|
(6.6)
|
(14.1)
|
(5.7)
|
8.1
|
34.7
|
Southwest
|
|
|
|
|
|
|
Consolidated
|
60.9
|
-
|
(0.7)
|
0.3
|
(18.7)
|
41.8
|
Equity
method
|
3.6
|
(1.9)
|
(0.2)
|
-
|
(1.5)
|
-
|
Total
|
64.5
|
(1.9)
|
(0.9)
|
0.3
|
(20.2)
|
41.8
|
Total
consolidated
|
166.3
|
(8.2)
|
(24.0)
|
(6.7)
|
5.7
|
133.1
|
Total equity
method
|
58.4
|
(14.0)
|
(4.7)
|
(2.0)
|
1.7
|
39.4
|
Un-allocated
corporate
|
(11.4)
|
(0.3)
|
(1.7)
|
-
|
13.4
|
-
|
Total
|
$213.3
|
$(22.5)
|
$(30.4)
|
$(8.7)
|
$20.8
|
$172.5
|
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) Nine
months ended September 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
|
$53.7
|
$(1.8)
|
$(10.3)
|
$(0.4)
|
$8.7
|
$49.9
|
Equity
method
|
31.5
|
(15.9)
|
(3.7)
|
-
|
2.8
|
14.7
|
Total
|
85.2
|
(17.7)
|
(14.0)
|
(0.4)
|
11.5
|
64.6
|
Southeast
|
|
|
|
|
|
|
Consolidated
|
(0.1)
|
-
|
-
|
-
|
0.1
|
-
|
Equity
method
|
6.6
|
-
|
-
|
-
|
(0.4)
|
6.2
|
Total
|
6.5
|
-
|
-
|
-
|
(0.3)
|
6.2
|
Northwest
|
|
|
|
|
|
|
Consolidated
|
25.6
|
-
|
(1.4)
|
(0.5)
|
(0.5)
|
23.2
|
Equity
method
|
12.9
|
(1.3)
|
(2.4)
|
0.3
|
(0.1)
|
9.4
|
Total
|
38.5
|
(1.3)
|
(3.8)
|
(0.2)
|
(0.6)
|
32.6
|
Southwest
|
|
|
|
|
|
|
Consolidated
|
46.8
|
-
|
-
|
(0.4)
|
3.3
|
49.7
|
Equity
method
|
1.2
|
(2.5)
|
(0.4)
|
(0.2)
|
1.9
|
-
|
Total
|
48.0
|
(2.5)
|
(0.4)
|
(0.6)
|
5.2
|
49.7
|
Total
consolidated
|
126.0
|
(1.8)
|
(11.7)
|
(1.3)
|
11.6
|
122.8
|
Total equity
method
|
52.2
|
(19.7)
|
(6.5)
|
0.1
|
4.2
|
30.3
|
Un-allocated
corporate
|
(7.5)
|
-
|
-
|
-
|
7.5
|
-
|
Total
|
$170.7
|
$(21.5)
|
$(18.2)
|
$(1.2)
|
$23.3
|
$153.1
|
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 September
30,
|
Nine months
ended September
30,
|
|
2013
|
2012
|
2013
|
2012
|
Cash Distributions
from Projects
|
$67.4
|
$58.1
|
$172.5
|
$153.1
|
Repayment of
long-term debt
|
(5.3)
|
(5.4)
|
(22.5)
|
(21.5)
|
Interest expense,
net
|
(9.9)
|
(5.9)
|
(30.4)
|
(18.2)
|
Capital
expenditures
|
(3.8)
|
-
|
(8.7)
|
(1.2)
|
Other, including
changes in working capital
|
10.2
|
12.0
|
20.8
|
23.3
|
Project Adjusted
EBITDA
|
$76.2
|
$57.4
|
$213.3
|
$170.7
|
Depreciation and
amortization
|
51.4
|
41.8
|
154.5
|
123.0
|
Interest expense,
net
|
10.6
|
5.8
|
30.5
|
18.1
|
Change in the fair
value of derivative instruments
|
3.5
|
(10.8)
|
(34.8)
|
48.9
|
Other
expense
|
5.9
|
0.9
|
5.8
|
4.4
|
Project income
(loss)
|
$4.8
|
$19.7
|
$57.3
|
$(23.7)
|
Administrative and
other expenses
|
45.0
|
40.1
|
84.8
|
90.0
|
Income tax expense
(benefit)
|
-
|
3.1
|
(1.9)
|
(19.1)
|
Income (loss) from
discontinued operations, net of tax
|
(0.4)
|
19.0
|
(6.1)
|
48.8
|
Net
loss
|
$(40.6)
|
$(4.5)
|
$(31.7)
|
$(45.8)
|
Adjustments to
reconcile to net cash provided by operating activities
|
57.2
|
50.7
|
123.7
|
173.3
|
Change in other
operating balances
|
29.8
|
(11.5)
|
51.3
|
(3.4)
|
Cash flows from
operating activities
|
$46.4
|
$34.7
|
$143.3
|
$124.1
|
Project-level debt
repayments
|
(1.7)
|
(2.7)
|
(12.2)
|
(12.1)
|
Purchases of
property, plant and equipment
|
(2.2)
|
(0.4)
|
(7.3)
|
(1.2)
|
Dividends on
preferred shares of a subsidiary company
|
(3.2)
|
(3.3)
|
(9.5)
|
(9.8)
|
Distributions to
noncontrolling interests
|
(1.4)
|
-
|
(4.4)
|
-
|
Cash Available for
Distribution
|
$37.9
|
$28.3
|
$109.9
|
$101.0
|
Total cash dividends
declared to shareholders
|
11.0
|
34.0
|
47.2
|
99.1
|
Payout
Ratio
|
29%
|
120%
|
43%
|
98%
|
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.
|
|
Atlantic Power
Corporation Table 10 –
Project Adjusted EBITDA by Project (for Selected
Projects) (in millions
of U.S. dollars) Unaudited
|
|
Three months
ended September
30,
|
Nine months
ended September
30,
|
|
2013
|
2012
|
2013
|
2012
|
Project Adjusted
EBITDA by segment
|
Northeast
|
Accounting
|
|
|
|
|
Cadillac
|
Consolidated
|
$2.5
|
$2.3
|
$7.1
|
$6.7
|
Curtis
Palmer
|
Consolidated
|
6.6
|
3.1
|
25.2
|
18.9
|
Nipigon
|
Consolidated
|
(0.5)
|
3.0
|
8.2
|
10.2
|
North Bay
|
Consolidated
|
0.5
|
(0.2)
|
5.0
|
4.2
|
Tunis
|
Consolidated
|
2.0
|
2.0
|
6.1
|
8.4
|
Other (3
projects)
|
Consolidated
|
2.9
|
0.9
|
14.1
|
5.3
|
Chambers
|
Equity
method
|
5.4
|
4.7
|
15.5
|
18.7
|
Selkirk
|
Equity
method
|
5.5
|
4.5
|
15.6
|
12.8
|
Total
|
|
24.9
|
20.3
|
96.8
|
85.2
|
Southeast
|
|
|
|
|
|
Piedmont
|
Consolidated
|
3.5
|
-
|
3.7
|
(0.1)
|
Orlando
|
Equity
method
|
2.4
|
2.3
|
6.7
|
6.6
|
Total
|
|
5.9
|
2.3
|
10.4
|
6.5
|
Northwest
|
|
|
|
|
|
Meadow
Creek
|
Consolidated
|
3.9
|
-
|
10.4
|
-
|
Rockland
|
Consolidated
|
2.8
|
0.7
|
7.3
|
2.3
|
Williams
Lake
|
Consolidated
|
6.9
|
6.7
|
15.4
|
16.0
|
Other (2
projects)
|
Consolidated
|
(0.1)
|
1.7
|
2.9
|
7.3
|
Other (4 projects)
(1)
|
Equity
method
|
5.9
|
3.5
|
17.0
|
12.9
|
Total
|
|
19.4
|
12.6
|
53.0
|
38.5
|
Southwest
|
|
|
|
|
|
Canadian
Hills
|
Consolidated
|
3.7
|
-
|
18.3
|
-
|
Manchief
|
Consolidated
|
4.4
|
4.0
|
12.3
|
11.5
|
Other (6
projects)
|
Consolidated
|
19.8
|
18.1
|
30.3
|
35.3
|
Other (2
projects)
|
Equity
method
|
1.6
|
1.3
|
3.6
|
1.2
|
Total
|
|
29.5
|
23.4
|
64.5
|
48.0
|
Totals
|
|
|
|
|
|
Consolidated
projects
|
|
58.9
|
42.3
|
166.3
|
126.0
|
Equity method
projects
|
|
20.8
|
16.3
|
58.4
|
52.2
|
Un-allocated
corporate
|
|
(3.5)
|
(1.2)
|
(11.4)
|
(7.5)
|
Total Project
Adjusted EBITDA
|
|
$76.2
|
$57.4
|
$213.3
|
$170.7
|
|
|
|
|
|
|
Reconciliation to
project income (loss)
|
Depreciation and
amortization
|
$51.4
|
$41.8
|
$154.5
|
$123.0
|
Interest expense,
net
|
10.6
|
5.8
|
30.5
|
18.1
|
Change in the fair
value of derivative instruments
|
3.5
|
(10.8)
|
(34.8)
|
48.9
|
Other
expense
|
5.9
|
0.9
|
5.8
|
4.4
|
Project income
(loss)
|
$4.8
|
$19.7
|
$57.3
|
$(23.7)
|
(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