DEDHAM, Mass., May 2, 2019 /CNW/ --
First Quarter 2019 Financial Highlights
- Net income attributable to Atlantic Power of $8.9 million vs. $15.9
million in Q1 2018; reduction primarily attributable to
non-cash mark-to-market gains in the 2018 period
- Cash from operating activities of $29.2
million vs. $50.3 million in
Q1 2018; results for the two periods were nearly unchanged on an
adjusted basis excluding changes in working capital
- Project Adjusted EBITDA of $53.7
million vs. $53.4 million in
Q1 2018
- Repaid $15.8 million of term loan
and project debt
- Liquidity at March 31, 2019 of
$198 million, an increase of
$6.5 million from year-end 2018
- Reaffirmed full year 2019 guidance
Recent Developments (April
2019)
- Redeemed remaining Cdn$24.7
million of Series D convertible debentures using
discretionary cash
- Received favorable ruling in appeal of Williams Lake air permit amendment
- BC Hydro exercised option to extend Williams Lake short-term contract to
September 30, 2019
Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic
Power" or the "Company") today reported its financial results for
the three months ended March 31,
2019. Net income attributable to Atlantic Power was
$8.9 million, or $0.07 per diluted share, and cash from operating
activities was $29.2 million. Project
Adjusted EBITDA was $53.7
million.
"First quarter results made for a solid start to the year, with
Project Adjusted EBITDA and operating cash flow both ahead of our
expectations, mostly due to strong performance by Curtis Palmer and
the timing of certain cash receipts. During the quarter, we repaid
$15.8 million of debt using operating
cash flow and earlier this month we allocated $18.9 million of discretionary cash to the
redemption of our remaining Series D convertible debentures. We
expect to repay another $52 million
of consolidated debt by year-end, and improve our leverage ratio to
approximately 4 times," said James J.
Moore, Jr., President and CEO of Atlantic Power. "We will
continue to look for opportunities to allocate our strong liquidity
to growth investments and repurchases of common and preferred
shares, but only when such uses are accretive to our estimates of
intrinsic value per share."
Atlantic Power
Corporation
|
|
Table 1 - Summary
of Financial Results
|
|
|
(in millions of
U.S. dollars)
|
|
Unaudited
|
|
|
Three months ended
March 31,
|
|
2019
|
2018
|
Project
revenue
|
$73.0
|
$80.0
|
Project
income
|
30.6
|
28.3
|
Net income
attributable to Atlantic Power Corporation
|
8.9
|
15.9
|
Cash provided by
operating activities
|
29.2
|
50.3
|
Cash provided by
(used in) investing activities
|
1.2
|
(1.1)
|
Cash used in
financing activities
|
(25.5)
|
(45.7)
|
Project Adjusted
EBITDA
|
53.7
|
53.4
|
All amounts are in
U.S. dollars and are approximate unless otherwise indicated.
Project Adjusted EBITDA is not a recognized measure under generally
accepted accounting principles in the United States ("GAAP") and
does not have a standardized meaning prescribed by GAAP; therefore,
this measure may not be comparable to similar measures presented by
other companies. Please refer to "Non-GAAP Disclosures" on
page 13 of this news release for an explanation and a
reconciliation of "Project Adjusted EBITDA" as used in this news
release to Project income (loss).
|
Financial Results for the Three Months Ended March 31, 2019
First quarter 2019 results were adversely affected by Power
Purchase Agreement (PPA) expirations at Williams Lake and the three San Diego projects. In April 2018, the Williams Lake PPA expired and was
replaced by a short-term contract extension with less favorable
economics; this extension is currently scheduled to expire on
September 30, 2019. The PPAs for the
San Diego projects were terminated
effective March 1, 2018. The impact
of these PPA expirations and short-term extensions was as expected.
On the positive side, Tunis
returned to service under a new PPA in October 2018 and the start-up maintenance expense
incurred in the 2018 period did not recur. In addition, generation
at Curtis Palmer was significantly above the long-term average due
to higher water flows; thus, results for the project were better
than expected.
Project income, Net income and Project Adjusted
EBITDA
Project income for the first quarter of 2019 was
$30.6 million, a $2.3 million increase from $28.3 million in the year-ago period. Although
Project revenue decreased $7.0
million, this was offset by lower Project expenses. The
revenue decrease was mostly due to the PPA expirations at
Williams Lake and the San Diego projects, partially offset by
increased revenues from Tunis,
which was not in operation in the 2018 period, and Curtis Palmer,
which benefited from higher water flows. Depreciation expense
decreased at the San Diego
projects, which were fully depreciated by February 2018, and at Nipigon, due to the amortization of the PPA
intangible asset in 2018. Operation and maintenance expense
decreased primarily because $2.4
million of start-up maintenance at Tunis incurred in 2018 did not recur. Fuel
expense was lower mostly because the San
Diego projects ceased operation in February 2018. These favorable expense
comparisons were partially offset by a $6.1
million unfavorable change in the fair value of derivative
instruments.
Net income attributable to Atlantic Power
Corporation for the first quarter of 2019 was $8.9 million compared to $15.9 million in the first quarter of 2018. The
reduction of $7.0 million was
primarily attributable to a $13.2
million decrease in mostly unrealized foreign exchange gain,
which was related to the revaluation of debt denominated in
Canadian dollars (the Canadian dollar appreciated from December 31, 2018 to March
31, 2019) and a $6.8 million
unfavorable change in the fair value of the convertible debenture
conversion option (included in "Other expense (income),
net"). These negative factors were partially offset by the
$2.3 million increase in Project
income, a $4.1 million reduction in
interest expense resulting from lower debt balances, a reduction in
the interest rate on the Company's credit facilities, a
$4.5 million increase in the gain on
the redemption of preferred shares, and a reduction in income tax
expense.
Project Adjusted EBITDA for the first quarter of
2019 increased slightly to $53.7
million from $53.4 million in
the first quarter of 2018. Results benefited from the start-up of
Tunis under a new PPA in
October 2018 and the absence of
start-up expenses incurred in 2018 (+$3.5 million), higher water
flows at Curtis Palmer (+$2.7 million) and, to a less significant
degree, higher generation and a contractual rate increase at
Orlando and higher dispatch at
Manchief and Frederickson. Increases at these projects were mostly
offset by a decrease at Williams
Lake (-$5.1 million) due to
the less favorable short-term PPA, and modest decreases at other
projects, including the three San
Diego projects due to the early termination of the PPAs;
Chambers, due to reduced generation due to less favorable PJM power
prices; and Mamquam, due to lower water flows.
Cash Flow
Cash provided by operating activities for the first
quarter of 2019 was $29.2 million, a
decrease of $21.1 million from
$50.3 million in the first quarter of
2018. Changes in working capital accounted for $22.7 million of the year-over-year decline. The
2018 result benefited from an $18.3
million release of working capital by Kapuskasing, North
Bay and the three San Diego
projects when they ceased operation. Distributions from
unconsolidated affiliates were $0.8
million lower in 2019 than 2018. Comparisons were also
affected by the short-term PPA extension at Williams Lake (less favorable economics),
partially offset by positive results for Tunis and Curtis Palmer as compared to 2018.
Cash interest payments and cash taxes were $0.6 million lower in 2019 than 2018. Excluding
changes in working capital, operating cash flow in the 2019 period
was $1.6 million higher than the
comparable 2018 period.
Cash provided by investing activities for the first
quarter of 2019 was $1.2 million,
largely due to $1.5 million of
salvage proceeds from the San
Diego projects, compared to a $1.1
million use of funds in the first quarter of 2018.
Cash used in financing activities for the first
quarter of 2019 was $25.5 million as
compared to $45.7 million in the
year-ago period. In 2019, the Company repaid $15.8 million of term loan and project debt,
invested $7.8 million in the
repurchase of preferred and common shares and paid $1.9 million of preferred dividends. In the
comparable 2018 period, the Company issued $92.2 million of new convertible debentures,
redeemed $88.1 million of existing
convertible debentures and repaid $32.4
million of term loan and project debt, invested $10.4 million in the repurchase of common and
preferred shares and paid $2.2
million of preferred dividends.
During the first quarter of 2019, the net increase in cash,
restricted cash and cash equivalents was $4.9
million.
Liquidity and Balance Sheet
Liquidity
As shown in Table 2, the Company's liquidity at March 31, 2019 was $197.9
million, up $6.5 million from
$191.4 million at December 31, 2018. The increase in liquidity was
entirely attributable to an increase in cash. At March 31, 2019, there was $47.6 million of cash at the parent, of which the
Company considers approximately $40
million to be discretionary cash available for general
corporate purposes.
Atlantic Power
Corporation
|
|
|
Table 2 -
Liquidity
|
|
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
|
March 31,
2019
|
Dec. 31,
2018
|
Cash and cash
equivalents, parent
|
$47.6
|
$45.9
|
Cash and cash
equivalents, projects
|
27.2
|
22.4
|
Total cash and cash
equivalents
|
74.8
|
68.3
|
Revolving credit
facility
|
200.0
|
200.0
|
Letters of credit
outstanding
|
(76.9)
|
(76.9)
|
Availability under
revolving credit facility
|
123.1
|
123.1
|
|
|
|
Total
liquidity
|
$197.9
|
$191.4
|
|
|
|
Excludes restricted
cash of:
|
0.5
|
2.1
|
Balance Sheet
Debt Repayment
During the first quarter of 2019, the Company repaid
$15 million of the APLP Holdings term
loan and amortized $775 thousand of
project-level debt. At March 31,
2019, the Company's consolidated debt was $717.0 million, excluding unamortized discounts
and deferred financing costs, and the Company's consolidated
leverage ratio (consolidated gross debt to trailing 12-month
consolidated Adjusted EBITDA) was 4.5 times, unchanged from
year-end 2018.
In April 2019, the Company
redeemed the remaining Cdn$24.7
million of 6.00% Series D Debentures (US$18.5 million equivalent) at par plus accrued
interest. The total outlay of US$18.9
million equivalent was funded from discretionary cash.
The Company expects to repay another $52
million of consolidated debt over the remainder of 2019,
reducing its leverage ratio by year-end 2019 to approximately 4
times.
Debt Maturity Profile
As a result of the Series D redemption in April 2019, the Company's next bullet maturity is
not until April 2022, when the
$200 million revolving credit
facility matures. There are currently no borrowings outstanding,
although approximately $77 million is
being used for letters of credit.
The $435 million APLP Holdings
term loan is being repaid through amortization and the sweep, with
approximately $125 million of the
principal expected to be remaining at the April 2023 maturity date.
Credit Rating
In March 2019, S&P Global
Ratings affirmed the Company's B+ credit rating and revised the
outlook for the Company's credit to Positive from Stable, citing
the continuing deleveraging trend (supported by predictable
contracted cash flows) and the pending acquisition of contracted
biomass plants that will help to mitigate some re-contracting
risk.
Normal Course Issuer Bid (NCIB) Update
In the first quarter of 2019, the Company repurchased 427,500
shares of the 4.85% Cumulative Redeemable Preferred, Series 1 at
Cdn$14.26 per share; 78,577 shares of
the Cumulative Rate Reset Preferred, Series 2 at Cdn$18.25 per share; and 148,311 shares of the
Cumulative Floating Rate Preferred, Series 3 at Cdn$17.69 per share, for a total cost of
Cdn$10.2 million (US$7.7 million equivalent). Most of these
repurchases occurred in January 2019
and were previously reported. With these repurchases, the Company
has reached the 10% limit on Series 1 and Series 3 repurchases
under this NCIB. Also during the quarter, the Company repurchased
44,390 common shares at an average price of $2.15 per share.
2019 Guidance
The Company has not provided guidance for Project income or Net
income because of the difficulty of making accurate forecasts and
projections without unreasonable efforts with respect to certain
highly variable components of these comparable GAAP metrics,
including changes in the fair value of derivative instruments and
foreign exchange gains or losses. These factors, which generally do
not affect cash flow, are not included in Project Adjusted
EBITDA.
The Company is maintaining its guidance for 2019 Project
Adjusted EBITDA in the range of $175
million to $190 million, as
compared to the 2018 reported level of $185.1 million. The most significant negative
factor affecting 2019 guidance is the short-term contract extension
at Williams Lake, which became
effective in April 2018 and is
currently scheduled to expire at the end of September 2019. The economics of the short-term
extension are less favorable than the original PPA. On the positive
side, Project Adjusted EBITDA for Tunis and Manchief is expected to be
significantly higher this year due to the non-recurrence of
start-up and overhaul-related expenses, respectively, incurred in
2018. The Company's guidance assumes average water conditions for
its hydro projects. In 2018, water flows at Curtis Palmer were very
close to average while those for Mamquam were better than average.
Results in the first quarter of 2019 benefited relative to
expectations from higher water flows at Curtis Palmer, which
resulted in generation significantly above the long-term average;
some or even all of this may reverse over the remainder of the
year.
Table 3 provides a bridge of the Company's 2019 Project Adjusted
EBITDA guidance to an estimate of 2019 Cash provided by operating
activities. For purposes of providing this bridge to a cash flow
measure, the impact of changes in working capital is assumed to be
nil. The decline in 2019 estimated Cash provided by operating
activities from the 2018 level of $137.5
million is largely attributable to the working capital
assumption, Chambers project debt amortization of $5.2 million (captured in the adjustment for
equity method projects), and expected decommissioning outlays.
Results in the first quarter of 2019 benefited relative to
expectations from timing of revenue receipts at several projects
and from strong performance at Curtis Palmer; some or even all of
this may reverse over the remainder of the year.
Atlantic Power
Corporation
|
|
|
Table 3 - Bridge
of 2019 Project Adjusted EBITDA Guidance to Cash Provided by
Operating Activities
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
|
2019
Guidance
|
2018
Actual
|
|
(initiated
2/28/19)
|
|
Project Adjusted
EBITDA
|
$175 -
$190
|
$185.1
|
Adjustment for equity
method projects(1)
|
(5)
|
(0.0)
|
Corporate G&A
expense
|
(22)
|
(23.9)
|
Cash interest
payments
|
(39)
|
(41.3)
|
Cash taxes
|
(4)
|
(3.1)
|
Decommissioning (San
Diego projects)
|
(5)
|
(0.5)
|
Other (including
changes in working capital)
|
(0)
|
(21.2)
|
Cash provided by
operating activities
|
$100 -
$115
|
$137.5
|
Note: For the
purpose of providing bridge of Project Adjusted EBITDA guidance to
a cash flow measure, the impact of changes in working capital on
Cash provided by operating activities is assumed to be nil. See
comment in preceding paragraph.
|
(1) For equity method projects,
represents difference between Project Adjusted EBITDA and cash
distribution.
|
Commercial and Operational Updates
Williams Lake (British Columbia)
In late April, BC Hydro exercised its option to extend the
amended energy purchase agreement with Williams Lake by three months, to September 30, 2019. The project has been
operating under this short-term extension since April 2, 2018. The short-term extension is
subject to the approval of the BC Utilities Commission (BCUC),
which recently issued a revised schedule providing for additional
arguments and responses through May
8. A recent report prepared by the BC government is
supportive of biomass re-contracting, and the Company has begun
discussions with BC Hydro on a potential longer-term contract. In
addition, in early April the government issued a directive to the
BCUC requiring it to approve cost recovery in BC Hydro's rates of
any new biomass contracts entered into as a result of this
process.
Separately, in April 2019, the
Environmental Appeal Board issued a final decision on the amendment
to the Williams Lake air permit.
The amendment had been sought by the Company to allow the use of up
to 50% rail ties in the fuel mix for the project, and had been
approved in September 2016, but was
appealed by various parties. In its decision on the appeal, the
Board modified the permit amendment to a 35% annual limit and also
imposed a daily limit of 50%. The Company has not determined
whether it will proceed with investment in a new fuel shredder,
which would be required to accommodate rail ties as an increased
part of the fuel mix, but views the Board ruling as preserving the
option to do so. A decision to proceed with such an investment
would be dependent on a new long-term PPA with BC Hydro, the
economics of the shredder investment and the outlook for the
long-term supply of conventional fuel in the region.
Decommissioning of San Diego Projects
As previously reported, the Company is required by its land use
agreements with the U.S. Navy to decommission its three project
sites in San Diego (Naval Station,
Naval Training Center and North Island). The Company continues to
work with the Navy and San Diego Gas & Electric on the scope
and schedule for each of the three sites. Once agreement is
reached, the Company expects to solicit final bids for the work.
Based on current cost estimates, the Company anticipates cash
outlays for decommissioning of approximately $5 million, most of which would be incurred this
year, depending on the final schedule. Net of approximately
$1.7 million of salvage proceeds
received to date, the cash outlay would be approximately
$3.5 million.
Maintenance and Capex
In the first quarter of 2019, the Company incurred $4.0 million of maintenance expense. For the full
year, which does not have any planned major outages, the Company is
projecting maintenance expense of approximately $24.4 million and capital expenditures of
approximately $1.2 million. (All of
these figures include the Company's proportional share of
maintenance expenses and capital expenditures at equity method
investments.)
Financial Results by Segment and by Project
A schedule of Project income (loss) and Project Adjusted EBITDA
by segment for the first quarter 2019 and the comparable 2018
period can be found on page 12 of this release.
A schedule of Project income (loss), Project Adjusted EBITDA and
Cash Distributions by project for the first quarter 2019 and the
comparable 2018 period can be found in the first quarter 2019
presentation on the Company's website. Cash Distributions
from Projects is the amount of cash distributed by the projects to
the Company out of available project cash flow after all
project-level operating costs, interest payments, principal
repayment, capital expenditures and working capital
requirements.
Supplementary Information Regarding Non-GAAP
Disclosures
A discussion of non-GAAP disclosures and a schedule reconciling
Project Adjusted EBITDA, a non-GAAP measure, to the comparable GAAP
measure, can be found on page 13 of this release.
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call and webcast on Friday, May
3, 2019 at 8:30 AM ET.
Management's prepared remarks and an accompanying presentation will
be available on the Conference Calls page of the Company's website
prior to the call.
Conference Call / Webcast Information:
Date: Friday, May 3,
2019
Start Time: 8:30 AM
ET
Phone Number: U.S. (Toll Free) 1-855-239-3193;
Canada (Toll Free) 1-855-669-9657;
International (Toll) 1-412-542-4129.
Conference Access: Please request access to the
Atlantic Power conference call.
Webcast: The call will be broadcast over Atlantic
Power's website at www.atlanticpower.com.
Replay / Archive Information:
Replay: Access conference call number 10130576 at
the following telephone numbers: U.S. (Toll Free)
1-877-344-7529; Canada (Toll Free)
1-855-669-9658; International (Toll) 1-412-317-0088. The
replay will be available one hour after the end of the conference
call through June 3, 2019 at
11:59 PM ET.
Webcast archive: The conference call will be
archived on Atlantic Power's website at
www.atlanticpower.com for a period of 12 months.
About Atlantic Power
Atlantic Power is an independent power producer that owns power
generation assets in nine states in the
United States and two provinces in Canada. The
Company's generation projects sell electricity and steam to
investment-grade utilities and other creditworthy large customers
predominantly under long‑term PPAs that have expiration dates
ranging from 2019 to 2037. The Company seeks to minimize its
exposure to commodity prices through provisions in the contracts,
fuel supply agreements and hedging arrangements. The projects
are diversified by geography, fuel type, technology, dispatch
profile and offtaker (customer). The majority of the projects
in operation are 100% owned and directly operated and maintained by
the Company. The Company has expertise in operating most fuel
types, including gas, hydro, and biomass, and it owns a 40%
interest in one coal project.
Atlantic Power's shares trade on the New York Stock Exchange
under the symbol AT and on the Toronto Stock Exchange under the
symbol ATP. For more information, please visit the Company's
website at www.atlanticpower.com or contact:
Atlantic Power Corporation
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Cautionary Note Regarding Forward-Looking Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and
forward-looking information under Canadian securities law
(collectively, "forward-looking statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on
certain assumptions and describe the Company's future plans,
strategies and expectations, can generally be identified by the use
of the words "may," "will," "should," "project," "continue,"
"believe," "intend," "anticipate," "expect" or similar expressions
that are predictions of or indicate future events or trends and
which do not relate solely to present or historical matters.
Examples of such statements in this press release include, but are
not limited, to statements with respect to the following:
- the Company's view that Project Adjusted EBITDA and operating
cash flow in the first three months of 2019 were ahead of its
expectations;
- the Company's expectation that it will repay $52 million of consolidated debt over the
remainder of the year, reducing its leverage ratio to an estimated
4 times;
- the Company's view that approximately $40 million of cash at the parent is available
for discretionary purposes;
- the Company's estimate that approximately $125 million of its term loan will be outstanding
at the April 2023 maturity date, with
the balance having been repaid previously through amortization and
the sweep;
- the Company's guidance for 2019 Project Adjusted EBITDA in the
range of $175 million to $190 million;
- the Company's estimate for 2019 Cash provided by operating
activities in the range of $100
million to $115 million,
assuming for this purpose that changes in working capital are
nil;
- the Company's estimation that 2019 Project Adjusted EBITDA for
Williams Lake will be
significantly lower than in 2018;
- the Company's estimation that 2019 Project Adjusted EBITDA for
Tunis and Manchief will be
significantly higher than in 2018;
- the Company's assumption in its 2019 guidance of average water
conditions for its hydro projects;
- the Company's expectations for re-contracting the Williams Lake project and its views regarding
a potential investment in a fuel shredder for Williams Lake;
- the Company's estimation that cash outlays associated with the
decommissioning of the three San
Diego projects will total approximately $5 million and will be mostly incurred in 2019,
depending on the final schedule;
- the Company's estimation that, in 2019, including its share of
equity-owned projects, maintenance expense will total approximately
$24.4 million and capital
expenditures will total approximately $1.2
million; and
- the results of operations and performance of the Company's
projects, business prospects, opportunities and future growth of
the Company will be as described herein.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
U.S. Securities and Exchange Commission (the "SEC") from time to
time for a detailed discussion of the risks and uncertainties
affecting the 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.
Atlantic Power
Corporation
|
|
|
Table 4 –
Consolidated Balance Sheet
|
|
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
|
March
31,
|
Dec.
31,
|
|
2019
|
2018
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$74.8
|
$68.3
|
Restricted
cash
|
0.5
|
2.1
|
Accounts
receivable
|
29.1
|
35.7
|
Current portion of
derivative instruments asset
|
2.7
|
4.2
|
Inventory
|
13.1
|
15.8
|
Prepayments
|
5.4
|
4.0
|
Income taxes
receivable
|
-
|
0.3
|
Other current
assets
|
6.1
|
5.9
|
Total current
assets
|
131.7
|
136.3
|
Property, plant and
equipment, net
|
543.5
|
549.5
|
Equity investments in
unconsolidated affiliates
|
147.2
|
140.8
|
Power purchase
agreements and intangible assets, net
|
163.3
|
170.1
|
Goodwill
|
21.3
|
21.3
|
Derivative
instruments asset
|
-
|
0.3
|
Right of use lease
asset
|
6.1
|
-
|
Other
assets
|
6.2
|
6.2
|
Total
assets
|
$1,019.3
|
$1,024.5
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$4.0
|
$2.5
|
Income taxes
payable
|
0.2
|
-
|
Accrued
interest
|
3.7
|
2.3
|
Other accrued
liabilities
|
13.1
|
20.2
|
Current portion of
long-term debt
|
78.1
|
68.1
|
Current portion of
derivative instruments liability
|
11.0
|
4.5
|
Convertible
debentures
|
18.5
|
18.1
|
Short-term lease
liability
|
1.5
|
-
|
Other current
liabilities
|
0.4
|
0.2
|
Total current
liabilities
|
130.5
|
115.9
|
Long-term debt, net
of unamortized discount and deferred financing costs
|
519.6
|
540.7
|
Convertible
debentures, net of discount and unamortized deferred financing
costs
|
77.8
|
75.7
|
Derivative
instruments liability
|
14.8
|
15.4
|
Deferred income
taxes
|
8.1
|
9.0
|
Power purchase
agreements and intangible liabilities, net
|
20.9
|
21.2
|
Asset retirement
obligations, net
|
49.7
|
49.2
|
Long-term lease
liability
|
5.1
|
-
|
Other long-term
liabilities
|
5.0
|
5.0
|
Total
liabilities
|
$831.5
|
$832.1
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 109,688,979 and 108,341,738
issued and outstanding at March 31, 2019 and December 31, 2018,
respectively
|
1,261.4
|
1,260.9
|
Accumulated other
comprehensive loss
|
(144.1)
|
(146.2)
|
Retained
deficit
|
(1,112.7)
|
(1,121.6)
|
Total Atlantic Power
Corporation shareholders' equity
|
4.6
|
(6.9)
|
Preferred shares
issued by a subsidiary company
|
183.2
|
199.3
|
Total
equity
|
187.8
|
192.4
|
Total liabilities and
equity
|
$1,019.3
|
$1,024.5
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
Table 5 -
Consolidated Statements of Operations
|
|
(in millions of
U.S. dollars, except per share amounts)
|
|
Unaudited
|
|
|
|
|
Three months ended
March 31,
|
|
|
2019
|
2018
|
|
Project
revenue:
|
|
|
|
Energy
sales
|
$37.0
|
$38.4
|
|
Energy capacity
revenue
|
$30.2
|
20.1
|
|
Other
|
$5.8
|
21.5
|
|
|
$73.0
|
80.0
|
|
Project
expenses:
|
|
|
|
Fuel
|
20.0
|
22.2
|
|
Operations and
maintenance
|
16.5
|
21.2
|
|
Depreciation and
amortization
|
16.2
|
23.8
|
|
|
52.7
|
67.2
|
|
Project other income
(loss):
|
|
|
|
Change in fair value
of derivative instruments
|
(2.4)
|
3.8
|
|
Equity in earnings of
unconsolidated affiliates
|
12.9
|
12.3
|
|
Interest,
net
|
(0.3)
|
(0.6)
|
|
Other income,
net
|
0.1
|
-
|
|
|
10.3
|
15.5
|
|
Project
income
|
30.6
|
28.3
|
|
|
|
|
|
Administrative and
other expenses:
|
|
|
|
Administration
|
6.8
|
6.0
|
|
Interest expense,
net
|
11.1
|
15.1
|
|
Foreign exchange loss
(gain)
|
5.0
|
(8.2)
|
|
Other expense
(income), net
|
4.7
|
(2.0)
|
|
|
27.6
|
10.9
|
|
Income from
operations before income taxes
|
3.0
|
17.4
|
|
Income tax
expense
|
0.6
|
3.2
|
|
Net income
|
2.4
|
14.2
|
|
Net loss attributable
to preferred shares of a subsidiary company
|
(6.5)
|
(1.7)
|
|
Net income
attributable to Atlantic Power Corporation
|
$8.9
|
$15.9
|
|
Net earnings per
share attributable to Atlantic Power Corporation
shareholders:
|
|
|
|
Basic
|
$0.08
|
$0.14
|
|
Diluted
|
$0.07
|
$0.12
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
108.9
|
114.8
|
|
Diluted
|
138.6
|
140.6
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
Table 6 -
Consolidated Statements of Cash Flows
|
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
Three months ended
March 31,
|
|
2019
|
2018
|
Cash provided by
operating activities:
|
|
|
Net income
|
$2.4
|
$14.2
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
16.2
|
23.8
|
Share-based
compensation
|
0.6
|
0.5
|
Equity in earnings
from unconsolidated affiliates
|
(12.9)
|
(12.3)
|
Distributions from
unconsolidated affiliates
|
5.8
|
6.6
|
Unrealized foreign
exchange loss (gain)
|
5.3
|
(8.0)
|
Change in fair value
of derivative instruments
|
7.1
|
(5.9)
|
Amortization of debt
discount, deferred financing costs and right of use lease
asset
|
2.3
|
3.4
|
Change in deferred
income taxes
|
(0.7)
|
2.2
|
Change in other
operating balances
|
|
|
Accounts
receivable
|
5.1
|
26.1
|
Inventory
|
2.7
|
1.6
|
Prepayments and other
assets
|
(1.4)
|
0.8
|
Accounts
payable
|
1.9
|
3.2
|
Accruals and other
liabilities
|
(5.2)
|
(5.9)
|
Cash provided by
operating activities
|
29.2
|
50.3
|
|
|
|
Cash provided by
(used in) investing activities:
|
|
|
Proceeds from asset
sales
|
1.5
|
-
|
Purchase of property,
plant and equipment
|
(0.3)
|
(1.1)
|
Cash provided by
(used in) investing activities
|
1.2
|
(1.1)
|
|
|
|
Cash used in
financing activities:
|
|
|
Proceeds from
convertible debenture issuance
|
-
|
92.2
|
Repayment of
convertible debentures
|
-
|
(88.1)
|
Common share
repurchases
|
(0.1)
|
(6.4)
|
Preferred share
repurchases
|
(7.7)
|
(4.0)
|
Repayment of corporate
and project-level debt
|
(15.8)
|
(32.4)
|
Deferred financing
costs
|
-
|
(4.8)
|
Dividends paid to
preferred shareholders
|
(1.9)
|
(2.2)
|
Cash used in
financing activities:
|
(25.5)
|
(45.7)
|
|
|
|
Net increase in cash,
restricted cash and cash equivalents
|
4.9
|
3.5
|
Cash, restricted cash
and cash equivalents at beginning of period
|
70.4
|
84.8
|
Cash, restricted cash
and cash equivalents at end of period
|
$75.3
|
$88.3
|
|
|
|
Supplemental cash
flow information
|
|
|
Interest
paid
|
$8.2
|
$8.6
|
Income taxes paid,
net
|
$0.8
|
$1.0
|
Accruals for
construction in progress
|
$-
|
$0.3
|
Atlantic Power
Corporation
|
|
|
Table 7 - Project
Income (Loss) and Project Adjusted EBITDA by Segment
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
|
Three months ended
March 31,
|
|
2019
|
2018
|
Project income
(loss)
|
|
|
East U.S.
|
$23.6
|
$20.8
|
West U.S.
|
0.4
|
(2.0)
|
Canada
|
8.6
|
7.4
|
Un-allocated
Corporate
|
(2.0)
|
2.1
|
Total
|
$30.6
|
$28.3
|
Project Adjusted
EBITDA
|
|
|
East U.S.
|
$36.0
|
$33.2
|
West U.S.
|
6.1
|
6.1
|
Canada
|
11.7
|
14.2
|
Un-allocated
Corporate
|
(0.1)
|
(0.1)
|
Total
|
$53.7
|
$53.4
|
Non-GAAP Disclosures
Project Adjusted EBITDA is not a measure recognized
under GAAP and does not have a standardized meaning prescribed by
GAAP, and is therefore unlikely to be comparable to similar
measures presented by other companies. Investors are
cautioned that the Company may calculate this non-GAAP measure in a
manner that is different from other companies. The most
directly comparable GAAP measure is Project income (loss).
Project Adjusted EBITDA is defined as Project income (loss) plus
interest, taxes, depreciation and amortization (including non-cash
impairment charges), and changes in the fair value of derivative
instruments. Management uses Project Adjusted EBITDA at the
project level to provide comparative information about project
performance and believes such information is helpful to
investors. A reconciliation of Project Adjusted EBITDA to
Project income and to Net income on a consolidated basis is
provided in Table 8 below.
Atlantic Power
Corporation
|
|
|
Table 8 -
Reconciliation of Net Income to Project Adjusted
EBITDA
|
|
|
(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
Three months ended
March 31,
|
|
2019
|
2018
|
Net income
attributable to Atlantic Power Corporation
|
$8.9
|
$15.9
|
Net loss attributable
to preferred share dividends of a subsidiary company
|
(6.5)
|
(1.7)
|
Net income
|
$2.4
|
$14.2
|
Income tax
expense
|
0.6
|
3.2
|
Income from
operations before income taxes
|
3.0
|
17.4
|
Administration
|
6.8
|
6.0
|
Interest expense,
net
|
11.1
|
15.1
|
Foreign exchange loss
(gain)
|
5.0
|
(8.2)
|
Other expense
(income), net
|
4.7
|
(2.0)
|
Project
income
|
$30.6
|
$28.3
|
|
|
|
Reconciliation to
Project Adjusted EBITDA
|
|
|
Depreciation and
amortization
|
$20.2
|
$27.9
|
Interest,
net
|
0.7
|
1.0
|
Change in the fair
value of derivative instruments
|
2.4
|
(3.8)
|
Other income,
net
|
(0.2)
|
-
|
Project Adjusted
EBITDA
|
$53.7
|
$53.4
|
View original
content:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-first-quarter-2019-results-300843235.html
SOURCE Atlantic Power Corporation