DEDHAM, Mass., Feb. 27, 2020 /CNW/ --
Fourth Quarter 2019 Financial Results and
Developments
- Net loss attributable to Atlantic Power of $65.3 million or $0.60 per share vs. net income of $24.7 million or $0.18 per diluted share in Q4 2018; the 2019 loss
included non-cash impairment expense of $55.0 million recorded in the fourth quarter
- Cash from operating activities of $40.2
million was in line with $39.7
million in Q4 2018
- Project Adjusted EBITDA declined to $42.9 million from $46.6
million in Q4 2018, mostly due to the Cadillac outage and
reduced operations at Williams
Lake, in line with expectations
- Repaid $20 million of term loan
and achieved a leverage ratio of 3.8 times
- Repurchased 704,317 common shares at an average price of
$2.35 per share
- Liquidity at YE 2019 of $196.5
million, including approximately $42
million of discretionary cash
- Returned Williams Lake plant
to operation in December; continuing to focus on fuel supply
- Repairs to Cadillac plant under way; targeting a return to
service in Q3 2020
- In January 2020, executed
favorable amendment to credit facilities providing for improved
pricing and a two-year extension of term loan maturity date
Full Year 2019 Financial Results
- Net loss of $42.6 million or
$0.39 per share vs. net income of
$36.8 million or $0.29 per diluted share in 2018; the 2019 loss
included non-cash impairment expense of $55.0 million
- Cash from operating activities of $144.7
million increased from $137.5
million in 2018 and exceeded Company's expectation of
$115 million to $125 million
- Project Adjusted EBITDA increased to $196.1 million from $185.1
million in 2018, primarily due to above-average water flows
at Curtis Palmer, exceeding Company's upwardly revised guidance
range of $185 million to $195 million
2020 Guidance
- Initiated 2020 Project Adjusted EBITDA guidance in the range of
$175 million to $190 million(1); expected decline from
actual 2019 results assumes normal water flows for Curtis Palmer
and scheduled Power Purchase Agreement (PPA) expirations
- Estimating 2020 cash from operating activities (assuming
working capital changes are nil) in the range of $100 million to $115
million
Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic
Power" or the "Company") today reported its financial results for
the three months and year ended December 31,
2019.
"We posted strong results for both Project Adjusted EBITDA and
cash from operating activities in 2019, exceeding our guidance,"
said James J. Moore, Jr., President
and CEO of Atlantic Power. "Market conditions – supply/demand and
power prices – are poor. Nevertheless, Atlantic Power had a good
year of progress on business fundamentals, including: a reduction
in our leverage ratio to 3.8 times from 4.5 times a year ago, which
we expect to improve further in the next couple of years; an
upgrade to our credit rating by S&P; an extension of the
maturity date and a reduction in the pricing of our Term Loan;
solid contributions by the five projects we acquired ownership
interests in over the last two years (for a total investment of
$45 million) and steady operating
results from existing projects. We also had some successes on PPA
extensions. We have significant liquidity relative to the size of
the company and good prospects to allocate capital to additional
debt reduction, more share buybacks and, when price-to-value is
compelling, continued external growth as well."
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(1)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.
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Atlantic Power
Corporation
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Table 1 - Summary
of Financial Results
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(in millions of
U.S. dollars)
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Unaudited
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Three months
ended
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Twelve months
ended
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|
December
31,
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December
31,
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|
2019
|
2018
|
2019
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2018
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Project
revenue
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$66.2
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$70.7
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$281.6
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$282.3
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Project (loss)
income
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(33.4)
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20.1
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46.8
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88.2
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Net (loss) income
attributable to Atlantic Power Corporation
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(65.3)
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24.7
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(42.6)
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36.8
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Cash provided by
operating activities
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40.2
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39.7
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144.7
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137.5
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Cash provided by
(used in) investing activities
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6.3
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(0.1)
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(21.7)
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(17.0)
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Cash used in
financing activities
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(23.7)
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(27.1)
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(110.8)
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(135.0)
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Project Adjusted
EBITDA
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42.9
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46.6
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196.1
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185.1
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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 15 of this news
release for an explanation and a reconciliation of "Project
Adjusted EBITDA" as used in this news release to Project
income (loss).
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Discussion of Financial Results
Recent Accounting Developments
New Business Segments
In the fourth quarter of 2019, the Company revised its
reportable business segments to better align with how the projects
are managed and their performance evaluated following recent
acquisitions, PPA expirations and project decommissioning. The new
segments are Solid Fuel (biomass and coal), Natural Gas,
Hydroelectric and Corporate. A schedule of Project income (loss)
and Project Adjusted EBITDA by segment for the three months and
year ended December 31, 2019 and the
comparable 2018 periods can be found on page 14 of this
release.
Impairment
In the fourth quarter of 2019, the Company recorded a
$49.2 million impairment of its
equity investment in Chambers and a $5.8
million long-lived asset impairment at Calstock. Both projects are in the Solid Fuel
segment. Total impairment expense of $55.0
million is included in Project income, although it is not
included in Project Adjusted EBITDA.
The Company reviewed Chambers and determined that there had been
a decline in value that was other than temporary. Factors
considered in that determination included the continued decline in
forward power curves since the previous impairment recorded in
2017, a challenging re-contracting environment and a low
probability of the plant operating as a merchant facility. The
Company reviewed Calstock for
potential impairment consistent with its policy of evaluating those
projects for which the PPA is expiring within six months and
determined the plant was unlikely to operate past the expiration
date of the PPA in June 2020. Because
of the uncertainty of the ability to re-contract the project, the
fair value of Calstock was
determined solely on the cash flows remaining under the PPA.
Cadillac Insurance Recovery
As previously disclosed, the Cadillac plant, which is in the
Company's Solid Fuel segment, was extensively damaged in a steam
turbine overspeed event and subsequent fire in September 2019 and has been out of service since
the incident. The Company has insurance coverage that it believes
will be adequate to cover the cost of repairs and lost profits
(business interruption losses) during the outage. In the fourth
quarter of 2019, the Company received $11.3
million from its insurers in payment of its initial claim,
net of a $1 million property
deductible. The payment was not allocated between property
insurance and business interruption insurance. The Company applied
the entire $11.3 million to its
$24.3 million insurance receivable.
The $11.3 million is included in cash
flows from investing activities. The cost of repairs to the plant,
which totaled $5.1 million as of
December 31, 2019, is included in
capital expenditures, a component of cash flows from investing
activities.
The Company estimates that approximately $2.0 million of the $11.3
million represents recovery of business interruption losses
subsequent to the 45-day deductible. Insurance recoveries related
to business interruption losses are accounted for as a gain
contingency and will not be recorded as income until final payment
is made by the Company's insurers and the claim is settled, which
will occur only after the plant is returned to service. Assuming
that Cadillac is returned to service and the claim is settled in
2020, the outage should not have a net impact on Project Adjusted
EBITDA for the year.
Three Months Ended December 31,
2019
Project income (loss), Net income (loss) and Project Adjusted
EBITDA
Project loss in the fourth quarter of 2019 was
$33.4 million as compared to Project
income of $20.1 million in the
year-ago period. Impairment expense in 2019 of $55.0 million accounted for most of the adverse
change. Revenues declined approximately $4.5
million as the impact of the Cadillac outage (no revenue)
and reduced operations at Williams
Lake more than offset revenue increases at Curtis Palmer
(higher water flows) and Allendale
and Dorchester (both acquired in
the third quarter). Project income for Cadillac was $3.4 million lower than the year-ago period. On
the positive side, the San Diego
projects improved by $3.6 million
from the year-ago period when the Company recorded an increase in
its estimate of the asset retirement obligation. Williams Lake, Allendale and Dorchester are in the Solid Fuel segment;
Curtis Palmer is in the Hydroelectric segment, and the San Diego projects are in the Natural Gas
segment.
Net loss attributable to Atlantic Power
Corporation in the fourth quarter of 2019 was $65.3 million as compared to net income of
$24.7 million in the year-ago period.
Impairment expense accounted for $55.0
million of the decrease. The 2019 period included a
$4.8 million foreign exchange loss
whereas the prior period included a $13.7
million foreign exchange gain. The foreign exchange loss was
related to the revaluation of debt denominated in Canadian dollars
(the Canadian dollar appreciated from September 30, 2019 to December 31, 2019). Other adverse factors
included a decrease in the fair value of the convertible debenture
conversion option and an increase in income tax expense.
Project Adjusted EBITDA in the fourth quarter of
2019 declined to $42.9 million
from $46.6 million in the year-ago
period. Cadillac Project Adjusted EBITDA declined $3.8 million, which included a $3.4 million impact related to the outage
($1.4 million during the 45-day
deductible period and $2.0 million of
business interruption losses incurred subsequently). The Company
expects to recover the $2.0 million
later in 2020, assuming the insurance claim is settled in 2020.
Williams Lake Project Adjusted EBITDA declined $2.4 million due to reduced operations due to low
fuel inventory following the expiration of the short-term contract
in September 2019. In the
Hydroelectric segment, both Mamquam and Moresby Lake experienced
modest decreases in Project Adjusted EBITDA. On the positive side,
Project Adjusted EBITDA from Curtis Palmer increased $1.4 million due to higher water flows
(generation increased 14% from the fourth quarter of 2018). Nipigon
Project Adjusted EBITDA increased $1.3
million primarily due to a capacity rate escalation under
the PPA, the acquisitions of Allendale and Dorchester and equity interests in Craven and
Grayling contributed $0.7 million,
and Oxnard and Frederickson had
modest increases in Project Adjusted EBITDA. Nipigon, Oxnard and Frederickson are in the Natural Gas
segment, while Craven and Grayling are in the Solid Fuel
segment.
Cash Flow
Cash provided by operating activities in the fourth
quarter of 2019 was $40.2 million,
which was in line with the $39.7
million in the year-ago period. Positive variances included
receipt of a tax refund that reduced cash taxes versus the prior
period and a favorable working capital comparison. These were
partially offset by lower Project Adjusted EBITDA and a reduction
in distributions from unconsolidated affiliates (in 2018,
Orlando received the September
distribution in October; in 2019, Chambers repaid project debt
during the quarter and thus the distribution was reduced as
compared to 2018).
Cash provided by investing activities in the fourth
quarter of 2019 was $6.3 million as
compared to a $0.1 million use of
cash in the year-ago period. The increase was primarily
attributable to the receipt of $11.3
million of insurance proceeds related to the Cadillac fire,
partially offset by higher capital expenditures, including
$5.1 million related to Cadillac
repairs.
Cash used in financing activities in the fourth
quarter of 2019 was $23.7 million, a
decrease from $27.1 million in the
year-ago period. Cash used for common share repurchases declined
$2.6 million from the year-ago period
and project debt repayment was $0.8
million lower.
Year Ended December 31,
2019
Results for Project income and net income (loss) were adversely
affected by the impairment expense recorded in 2019. Project
Adjusted EBITDA increased from 2018 and was above expectations
primarily because of a 27% increase in generation at Curtis Palmer
driven by higher water flows. Cash provided by operating activities
also increased, but to a lesser degree than Project Adjusted
EBITDA, because changes in working capital had a larger positive
impact on operating cash flow in 2018 than in 2019.
Project income, Net income (loss) and Project Adjusted
EBITDA
Project income in 2019 was $46.8 million versus $88.2
million in 2018. Project revenues declined $0.7 million, as increases at Curtis Palmer,
Allendale and Dorchester (both acquired in July 2019) and Tunis (restarted operations in October 2018) were offset by decreases at
Williams Lake (short-term contract
extension and reduced operations), the San Diego projects (shut down in February 2018), Cadillac (outage following the
September 2019 fire) and Morris.
Tunis and Morris are in the
Natural Gas segment. The decline in Project income was primarily
due to the $55.0 million impairment
recorded in 2019, an $11.1 million
adverse change in the fair value of derivative instruments and the
non-recurrence of the $6.7 million
remeasurement gain on the consolidation of Koma Kulshan (in the
Hydroelectric segment) in 2018. These negative variances were
partially offset by lower depreciation expense of $19.2 million (mostly at Nipigon, where the PPA intangible asset was
fully amortized in 2018, and the San
Diego projects) and lower operation and maintenance expense
of $8.0 million (at Manchief, which
had a gas turbine overhaul in 2018; the San Diego projects, which were shut down in
2018; and Tunis, which incurred
start-up expenses in 2018, partially offset by increases related to
the acquisition of Allendale and
Dorchester). Manchief is in the
Natural Gas segment.
Net loss attributable to Atlantic Power
Corporation in 2019 was $42.6
million versus net income of $36.8
million in 2018. The adverse change of $79.4 million was the result of the $55.0 million impairment expense and other
factors reducing Project income as described above, an $11.9 million foreign exchange loss versus a
$22.8 million foreign exchange gain
in 2018, and a $9.6 million increase
in income tax expense. The foreign exchange loss was related to the
revaluation of debt denominated in Canadian dollars (the Canadian
dollar appreciated from December 31,
2018 to December 31, 2019).
These negative variances were partially offset by an $8.7 million reduction in interest expense in
2019 due to lower debt balances and a lower rate on the Company's
credit facilities.
Project Adjusted EBITDA in 2019 of $196.1 million increased $11.0 million from $185.1
million in 2018. The increase was primarily driven by Curtis
Palmer (+$11.5 million), Manchief (+$7.4 million) and Tunis (+$7.1 million), for reasons previously
described. Other positive drivers included the acquisitions of
Allendale and Dorchester and equity interests in Craven and
Grayling (+$2.4 million); Frederickson (+$2.1 million), due to
higher dispatch and lower maintenance expense; and modest increases
at several other projects. These increases were partially offset by
decreases at Williams Lake
(-$9.0 million), due to the
short-term contract extension and reduced operations; Cadillac
(-$4.0 million), mostly due to the
$3.4 million impact of the outage
following the September 2019 fire;
Chambers (-$2.4 million), due to
lower energy and steam demand and lower excess energy pricing;
Mamquam (-$2.2 million), due to lower
water flows; and Oxnard
(-$2.1 million), due to an increase
in gas prices and higher operating expense.
Cash Flow
Cash provided by operating activities in 2019 of
$144.7 million increased $7.2 million from $137.5
million in 2018. The increase was primarily due to the
$11.0 million increase in Project
Adjusted EBITDA and a $3.7 million
reduction in cash interest payments due to lower debt balances and
a lower rate on the Company's credit facilities. These positive
variances were partially offset by a $4.8
million adverse impact from changes in working capital and
$2.1 million of lower distributions
from unconsolidated affiliates.
Cash used in investing activities in 2019 of
$21.7 million increased from
$17.0 million in 2018, primarily due
to the acquisitions of Allendale
and Dorchester and equity
interests in Craven and Grayling in 2019 (total $27.3 million net of cash acquired) as compared
to the acquisition of Koma Kulshan and a deposit on the biomass
plant acquisition in 2018 (total $15.4
million). Capital expenditures increased by $5.5 million, primarily for Cadillac repairs
($5.1 million). These increases in
use of cash were partially offset by $11.3
million of insurance proceeds received in 2019 related to
the Cadillac fire.
Cash used in financing activities in 2019 of
$110.8 million decreased from
$135.0 million in 2018. In 2019, the
Company repaid $72.3 million of term
loan and project debt, redeemed $18.5
million (US$ equivalent) of the remaining Series D
convertible debentures, repurchased $10.5
million of common and preferred shares, paid $7.4 million of preferred dividends and made
$2.1 million of cash payments for
vested LTIP units withheld for taxes. In the comparable 2018
period, the Company issued $92.2
million of Series E convertible debentures, redeemed
$88.1 million of Series C and Series
D convertible debentures, repaid $100.3
million of term loan and project debt, repurchased
$24.6 million of common and preferred
shares, incurred $5.1 million of
deferred financing costs and paid $8.3
million of preferred dividends.
During 2019, the net increase in the Company's cash, restricted
cash and cash equivalents was $12.2
million.
Liquidity, Balance Sheet and Capital
Allocation
Liquidity
As shown in Table 2, the Company's liquidity at December 31, 2019 was $196.5 million, an increase of $15.3 million from $181.2
million at September 30, 2019.
This increase was primarily attributable to a $17.6 million increase in cash at the parent to
$48.8 million. The Company considers
approximately $42 million to be
discretionary cash available for general corporate purposes. The
higher level of cash at the parent was the result of discretionary
cash flow after debt repayment, capital expenditures and payment of
preferred dividends in the fourth quarter of 2019. Parent cash does
not include the $11.3 million
recovered to date under the Company's insurance policies following
the Cadillac fire. Those amounts are included in either
project-level or restricted cash, as indicated in Table 2.
Atlantic Power
Corporation
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Table 2 -
Liquidity
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(in millions of
U.S. dollars)
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Unaudited
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|
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Dec. 31,
2019
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Sept. 30,
2019
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Cash and cash
equivalents, parent
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$48.9
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$31.2
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Cash and cash
equivalents, projects (1)
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26.0
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26.9
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Total cash and cash
equivalents
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74.9
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58.1
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Revolving credit
facility
|
200.0
|
200.0
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Letters of credit
outstanding
|
(78.3)
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(76.9)
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Availability under
revolving credit facility
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121.7
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123.1
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Total
liquidity
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$196.6
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$181.2
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Excludes restricted
cash of (2) :
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$7.7
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$1.7
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(1) Dec.
31, 2019 includes $4.0 million from Cadillac insurance proceeds for
use in reconstruction of the plant.
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(2) Dec. 31, 2019 includes $7.3
million from Cadillac insurance proceeds for use in reconstruction
of the plant.
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Balance Sheet
Debt Repayment
During the fourth quarter of 2019, the Company repaid
$20.0 million of the APLP Holdings
term loan. For the full year, the Company repaid $70.0 million of the term loan and amortized
$2.3 million of project-level debt at
Cadillac. In addition, in April 2019,
the Company redeemed the remaining 6.00% Series D Debentures
(Cdn$24.7 million, or US$18.5 million equivalent). Total consolidated
debt repayment for the year was $90.8
million.
At December 31, 2019, the
Company's consolidated debt was $647.2
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 3.8 times, which was improved from 4.5 times a year
ago.
The Company expects to repay approximately $72.5 million of term loan and $3.9 million of Cadillac project debt in 2020. In
addition, the Company expects to repay $7.8
million of its share of Chambers project debt (Chambers is
accounted for on the equity method), following repayment of
$5.1 million in 2019.
Amendment to Credit Facilities
On January 31, 2020, as previously
reported, the Company executed an amendment to its credit
facilities. The favorable changes to terms included a reduction in
the spread of 25 basis points to LIBOR plus 250 basis points.
Should the Company achieve a leverage ratio of 2.75 times, the
spread would be reduced by another 25 basis points. In addition,
the maturity date of the term loan was extended by two years to
April 2025. The targeted debt
balances were modified to reflect the anticipated closing of the
Manchief sale in 2022. As a result, targeted debt repayment will be
lower in 2020 and higher in 2022 as compared to the previous
schedule. The targeted debt repayment schedule terminates at the
end of 2022. Debt repayment will continue in 2023 through the
maturity date per the cash flow sweep. The Company expects to fully
amortize the term loan by maturity from operating cash flow and the
Manchief sale proceeds.
Capital Allocation
Normal Course Issuer Bid (NCIB) Update
The NCIB that the Company put in place on December 31, 2018 expired on December 30, 2019. Under this program, the
Company repurchased and canceled a total of nearly 1.1 million
common shares at an average price of $2.31 per share, representing an investment of
$2.5 million. Also in 2019, the
Company repurchased 427,500 shares of the 4.85% Cumulative
Redeemable Preferred, Series 1, at Cdn$14.26 per share; 100,377 shares of the
Cumulative Rate Reset Preferred, Series 2, at Cdn$18.27 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$10.6 million (US$8.0 million equivalent). The Company reached
the 10% limit on Series 1 and Series 3 repurchases under this
NCIB.
Included in the above totals for the year, in the fourth quarter
of 2019, the Company repurchased and canceled 704,317 common shares
at a total cost of $1.65 million, or
an average price of $2.35 per share.
The Company did not repurchase any preferred shares during the
fourth quarter.
On December 31, 2019, as
previously reported, the Company put in place a new NCIB for Series
E convertible unsecured subordinated debentures, common shares and
all three series of preferred shares. Details of this program can
be found in the Company's December 19,
2019 press release.
In January and February 2020,
under the new NCIB, the Company repurchased approximately 1.7
million common shares at a cost of $4.1
million, or an average price of $2.35 per share. In addition, the Company
repurchased 247,894 shares of the 4.85% Cumulative Redeemable
Preferred, Series 1, at Cdn$16.40 per
share, for a total cost of Cdn$4.1
million (US$3.1 million
equivalent).
Acquisitions
The Company completed the acquisitions of the Allendale and Dorchester biomass plants and equity interests
in the Craven County and Grayling biomass plants in the third
quarter of 2019. Including $0.2
million of transaction costs, the aggregate investment was
$28.7 million. The Company also paid
a $2.6 million deposit (for
Allendale and Dorchester) in 2018, for a total investment of
$31.3 million.
2020 Guidance
The Company has not provided guidance for Project income or Net
income because of the difficulty of making accurate forecasts and
projections without unreasonable efforts with respect to certain
highly variable components of these comparable GAAP metrics,
including changes in the fair value of derivative instruments and
foreign exchange gains or losses. These factors, which generally do
not affect cash flow, are not included in Project Adjusted
EBITDA.
The Company has initiated guidance for 2020 Project Adjusted
EBITDA in the range of $175 million
to $190 million, which is the same as
its initial guidance for 2019. Actual 2019 results of $196.1 million exceeded guidance primarily due to
strong water flows at Curtis Palmer (generation was 26% above the
historical average) and the acquisitions of Allendale and Dorchester and equity interests in Craven and
Grayling. Guidance for 2020 assumes a return to average water flows
for Curtis Palmer, which accounts for most of the anticipated
year-over-year decline in Project Adjusted EBITDA. Scheduled PPA
expirations at Oxnard and
Calstock in May and June of this
year, respectively, and a planned hot gas path inspection at Morris
also contribute to the decline. These negative variances are
expected to be partially offset by a full year contribution by the
acquired biomass projects and modest increases at several other
projects. The Company's 2020 guidance assumes that Cadillac is
returned to service later this year and that the Company records to
revenues and Project Adjusted EBITDA those insurance recoveries
related to business interruption.
Table 3 provides a bridge of the Company's 2020 Project Adjusted
EBITDA guidance to an estimate of 2020 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 2020 estimated Cash provided by operating
activities to a range of $100 million
to $115 million from the 2019 level
of $144.7 million is largely
attributable to lower expected Project Adjusted EBITDA, the working
capital assumption discussed above (versus a favorable contribution
in 2019), modestly higher project debt repayment at Chambers
(captured in the adjustment for equity method projects) and higher
decommissioning outlays for the San
Diego projects (majority of the cash outlays occurring in
2020 rather than in 2019).
Atlantic Power
Corporation
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Table 3 - Bridge
of 2020 Project Adjusted EBITDA Guidance to Cash Provided by
Operating Activities
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(in millions of
U.S. dollars)
|
|
|
Unaudited
|
|
|
|
2020
Guidance
|
2019
Actual
|
|
(As of
2/27/20)
|
|
Project Adjusted
EBITDA
|
$175 -
$190
|
$196.1
|
Adjustment for equity
method projects(1)
|
(8)
|
(3.5)
|
Corporate G&A
(cash)
|
(24)
|
(22.4)
|
Cash interest
payments
|
(36)
|
(37.6)
|
Cash taxes
|
(4)
|
(2.3)
|
Decommissioning (San
Diego projects)
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(4)
|
(1.0)
|
Other (including
changes in working capital)
|
-
|
15.4
|
Cash provided by
operating activities
|
$100 -
$115
|
$144.7
|
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.
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(1) For equity method projects,
represents difference between Project Adjusted EBITDA and cash
distribution.
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Operational Updates
Cadillac Status
The September 2019 fire resulted
in extensive damage to the turbine, generator and other components
in that area of the plant. The plant is expected to remain out of
service while repairs are completed. The Company has sourced the
necessary replacement equipment and is currently targeting a return
of the plant to service in the third quarter of this year.
Williams Lake Operations
The Company returned the Williams
Lake plant to operation in mid-December, which was slightly
earlier than planned. Under the terms of the Energy Purchase
Agreement with BC Hydro that became effective last October, the
plant will not operate during the months of May, June and July.
During that period, the Company expects to undertake significant
maintenance, including a replacement of the cooling tower, which
will be expensed. The Company remains focused on fuel procurement
and is currently building supply through a variety of existing and
new sources. Fuel availability remains challenging, although fuel
costs to date have been in line with the Company's expectations.
Considering planned maintenance expenditures and expected run time
for the plant, the Company continues to estimate that Project
Adjusted EBITDA in 2020 will be approximately
breakeven.
Decommissioning of San Diego Projects
The Company recently signed a contract for the demolition of the
three project sites in San Diego
(Naval Station, Naval Training Center and North Island). The work
is expected to begin shortly and require approximately six months
to be completed. The current estimate for the cost of
decommissioning these projects is $6.6
million, of which $1.5 million
has been incurred to date (including $1.0
million incurred in 2019). In 2018 and 2019, the Company
realized a total of $1.8 million of
salvage proceeds. The cash outlay required in 2020 to complete the
work is estimated to be approximately $4
million. Decommissioning expenditures are not included in
Project Adjusted EBITDA.
Maintenance and Capex
In the fourth quarter of 2019, the Company incurred $7.3 million of maintenance expense and
$1.5 million of capital expenditures.
For the full year, maintenance expense totaled $23.8 million and capital expenditures totaled
$2.3 million. These figures exclude
the capital expenditures for repairs and replacement of equipment
at Cadillac of $5.1 million, all
incurred in the fourth quarter. These expenditures are expected to
be covered by the Company's insurance, excluding the deductible.
For 2020, the Company is projecting maintenance expense of
$32.8 million and capital
expenditures of approximately $4.0
million (excluding Cadillac). Higher expected maintenance
expense in 2020 as compared to 2019 primarily reflects planned
outages at Morris and Williams
Lake and the full year impact of the acquired projects. (All
of these figures include the Company's proportional share of
maintenance expenses and capital expenditures at equity method
investments.)
Commercial Updates
2020 PPA Expirations
The Company has two projects with PPAs that are scheduled to
expire in 2020.
Oxnard (California). The PPA with Southern
California Edison will expire in May
2020. To date the project has not been selected in various
solicitations by the utility customer for its resource needs in
2021 and beyond. The Company is continuing to pursue other
potential offtake structures for the project, potentially on a
short-term basis. In 2019, Oxnard
generated a breakeven level of Project Adjusted EBITDA, which was
$2.1 million lower than in 2018 due
to higher gas prices and higher operating expense.
Calstock (Ontario). The PPA with the Ontario
Electricity Financial Corporation will expire in June 2020. Although the Company continues to
engage with the relevant parties, at this time the Company does not
expect the plant to continue operating past the expiration date of
the PPA. In 2019, Calstock
generated $5.2 million of Project
Adjusted EBITDA. As noted, in 2019 the Company recorded a
long-lived asset impairment charge at Calstock of $5.8
million, which is not included in Project Adjusted
EBITDA.
Financial Results by Project
A schedule of Project income (loss), Project Adjusted EBITDA and
Cash Distributions by project for the three months and year ended
December 31, 2019 and the comparable
2018 periods can be found in the fourth 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 15 of this release.
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call and webcast on Friday,
February 28, 2020 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, February
28, 2020
Start Time: 8:30 AM
ET
Phone Numbers:
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 10139226 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 March 28,
2020 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 eleven 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 2020 to 2043. 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). Approximately
75% 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," "estimate," "target" 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 expectation that the cost of repairs and business
interruption losses at its Cadillac plant following the
September 2019 fire will be mostly
covered by its insurance, and the Company's target of returning the
plant to service in the third quarter of 2020;
- the Company's view that Project Adjusted EBITDA and operating
cash flow in 2019 were ahead of its expectations, mostly due to
higher water flows at Curtis Palmer;
- the Company's view that approximately $42 million of cash at the parent is available
for discretionary purposes;
- the Company's guidance for 2020 Project Adjusted EBITDA in the
range of $175 million to $190 million, and its views of the underlying
drivers;
- the Company's estimate for 2020 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 view that 2019 was a good year of progress on
business fundamentals;
- the Company's expectation that its leverage ratio will continue
to improve over the next couple of years;
- the Company's view of its liquidity and prospects for
allocating capital;
- the Company's estimate that there should be no net impact on
Project Adjusted EBITDA in 2020 from the Cadillac outage, assuming
the plant returns to service this year;
- the Company's expectation that it will repay $72.5 million of its term loan and $3.9 million of Cadillac project debt in 2020,
and another $7.8 million of project
debt at Chambers (equity-owned project) from project-level cash
flow;
- the Company's expectation that it will fully amortize the term
loan by the April 2025 maturity from
operating cash flow and proceeds of the Manchief sale;
- the Company's expectations with respect to its ability to
procure fuel for Williams Lake,
and its assessment that the availability and cost of fuel are
critical inputs to the plant's financial performance;
- the Company's plans for maintenance expenditures at
Williams Lake;
- the Company's estimate that Williams
Lake will have approximately a breakeven level of Project
Adjusted EBITDA in 2020;
- the Company's estimation that cash outlays associated with the
decommissioning of the three San
Diego projects will total approximately $6.6 million, or approximately $5 million net of salvage proceeds, and that
approximately $4 million of this will
be incurred in 2020, with the work expected to be completed within
approximately six months;
- the Company's estimation that, in 2020, including its share of
equity-owned projects, maintenance expense will total approximately
$32.8 million and capital
expenditures will total approximately $4.0
million (excluding capital expenditures for repairs to
Cadillac);
- the Company's views with respect to the re-contracting and
post-PPA outlook for Oxnard and
Calstock, 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
|
|
|
|
December
31,
|
December
31,
|
|
2019
|
2018
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$74.9
|
$68.3
|
Restricted
cash
|
7.7
|
2.1
|
Accounts
receivable
|
30.4
|
35.7
|
Insurance recovery
receivable
|
13.5
|
-
|
Current portion of
derivative instruments asset
|
0.7
|
4.2
|
Inventory
|
18.6
|
15.8
|
Prepayments
|
3.8
|
4.0
|
Income taxes
receivable
|
1.8
|
0.3
|
Lease
receivable
|
0.9
|
-
|
Other current
assets
|
0.4
|
5.9
|
Total current
assets
|
152.7
|
136.3
|
Property, plant, and
equipment, net
|
502.1
|
549.5
|
Equity investments in
unconsolidated affiliates
|
96.6
|
140.8
|
Power purchase
agreements and intangible assets, net
|
144.3
|
170.1
|
Goodwill
|
21.3
|
21.3
|
Derivative
instruments asset
|
-
|
0.3
|
Operating lease
right-of-use assets
|
6.3
|
-
|
Deferred income
taxes
|
10.4
|
7.0
|
Other
assets
|
1.9
|
6.2
|
Total
assets
|
$935.6
|
$1,031.5
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$8.9
|
$2.5
|
Accrued
interest
|
2.6
|
2.3
|
Other accrued
liabilities
|
20.8
|
20.2
|
Current portion of
long-term debt
|
76.4
|
68.1
|
Current portion of
derivative instruments liability
|
12.0
|
4.5
|
Convertible
debentures
|
-
|
18.1
|
Operating lease
liabilities
|
2.0
|
-
|
Other current
liabilities
|
0.2
|
0.2
|
Total current
liabilities
|
122.9
|
115.9
|
Long-term debt, net
of unamortized discount and deferred financing costs
|
473.5
|
540.7
|
Convertible
debentures, net of discount and unamortized deferred financing
costs
|
81.1
|
75.7
|
Derivative
instruments liability
|
15.9
|
15.4
|
Deferred income
taxes
|
23.7
|
16.0
|
Power purchase
agreements and intangible liabilities, net
|
19.8
|
21.2
|
Asset retirement
obligations, net
|
51.5
|
49.2
|
Operating lease
liabilities
|
4.8
|
-
|
Other long-term
liabilities
|
4.7
|
5.0
|
Total
liabilities
|
$797.9
|
$839.1
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 108,675,294 and
108,341,738 issued and outstanding at December 31, 2019 and
December 31,
2018
|
1,259.9
|
1,260.9
|
Accumulated other
comprehensive loss
|
(140.7)
|
(146.2)
|
Retained
deficit
|
(1,164.2)
|
(1,121.6)
|
Total Atlantic Power
Corporation shareholders' equity
|
(45.0)
|
(6.9)
|
Preferred shares
issued by a subsidiary company
|
182.7
|
199.3
|
Total
equity
|
137.7
|
192.4
|
Total liabilities and
equity
|
$935.6
|
$1,031.5
|
Atlantic Power
Corporation
|
|
|
Table 5 -
Consolidated Statements of Operations
|
(in millions of
U.S. dollars, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
December
31,
|
December
31,
|
|
2019
|
2018
|
|
2019
|
2018
|
Project
revenue:
|
|
|
|
|
|
Energy
sales
|
$35.3
|
$36.1
|
|
$138.0
|
$130.9
|
Energy capacity
revenue
|
25.6
|
25.0
|
|
125.4
|
97.9
|
Other
|
5.3
|
9.6
|
|
18.2
|
53.5
|
|
66.2
|
70.7
|
|
281.6
|
282.3
|
Project
expenses:
|
|
|
|
|
|
Fuel
|
17.1
|
19.1
|
|
72.3
|
73.1
|
Operations and
maintenance
|
22.4
|
18.6
|
|
77.0
|
85.0
|
Depreciation and
amortization
|
16.0
|
18.1
|
|
64.5
|
83.7
|
|
55.5
|
55.8
|
|
213.8
|
241.8
|
Project other (loss)
income:
|
|
|
|
|
|
Change in fair value
of derivative instruments
|
(0.6)
|
(1.3)
|
|
(8.9)
|
2.2
|
Equity in (loss)
earnings of unconsolidated affiliates
|
(37.5)
|
9.4
|
|
(3.0)
|
43.2
|
Interest,
net
|
(0.2)
|
(0.4)
|
|
(1.1)
|
(1.8)
|
Impairment
|
(5.8)
|
-
|
|
(5.8)
|
-
|
Insurance
loss
|
-
|
-
|
|
(1.0)
|
-
|
Other (expense)
income, net
|
-
|
(2.5)
|
|
(1.2)
|
4.1
|
|
(44.1)
|
5.2
|
|
(21.0)
|
47.7
|
Project (loss)
income
|
(33.4)
|
20.1
|
|
46.8
|
88.2
|
|
|
|
|
|
|
Administrative and
other expenses:
|
|
|
|
|
|
Administration
|
6.6
|
5.9
|
|
23.9
|
23.9
|
Interest expense,
net
|
11.0
|
12.0
|
|
44.0
|
52.7
|
Foreign exchange loss
(gain)
|
4.8
|
(13.7)
|
|
11.9
|
(22.8)
|
Other expense
(income), net
|
0.3
|
(3.4)
|
|
1.0
|
(3.0)
|
|
22.7
|
0.9
|
|
80.8
|
50.8
|
(Loss) income from
operations before income taxes
|
(56.1)
|
19.2
|
|
(34.0)
|
37.4
|
Income tax expense
(benefit)
|
7.3
|
(7.5)
|
|
9.8
|
0.2
|
Net (loss)
income
|
(63.4)
|
26.7
|
|
(43.8)
|
37.2
|
Net income (loss)
attributable to preferred shares of a
subsidiary company
|
1.9
|
2.0
|
|
(1.2)
|
0.4
|
Net (loss) income
attributable to Atlantic Power Corporation
|
($65.3)
|
$24.7
|
|
($42.6)
|
$36.8
|
Net (loss) earnings
per share attributable to Atlantic
Power Corporation shareholders:
|
|
|
|
|
|
Basic
|
($0.60)
|
$0.23
|
|
($0.39)
|
$0.33
|
Diluted
|
($0.60)
|
$0.18
|
|
($0.39)
|
$0.29
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic
|
109.3
|
109.6
|
|
109.3
|
112.0
|
Diluted
|
109.3
|
140.7
|
|
109.3
|
141.8
|
Atlantic Power
Corporation
|
|
|
Table 6 -
Consolidated Statements of Cash Flows
|
|
(in millions of
U.S. dollars)
|
Twelve months
ended
|
Unaudited
|
December
31,
|
|
2019
|
2018
|
Cash provided by
operating activities:
|
|
|
Net (loss)
income
|
($43.8)
|
$37.2
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
64.4
|
83.7
|
Gain on disposal of
fixed assets and inventory
|
(0.9)
|
(0.4)
|
Asset retirement
obligations
|
1.4
|
3.5
|
Gain on step
acquisition of equity investment
|
-
|
(7.2)
|
Share-based
compensation
|
1.5
|
2.7
|
Impairment
|
5.8
|
-
|
Insurance
loss
|
1.0
|
-
|
Equity in loss
(earnings) from unconsolidated affiliates
|
3.0
|
(43.2)
|
Distributions from
unconsolidated affiliates
|
59.5
|
61.6
|
Unrealized foreign
exchange loss (gain)
|
12.2
|
(22.0)
|
Change in fair value
of derivative instruments
|
10.7
|
(5.5)
|
Amortization of debt
discount, deferred financing costs and operating lease right-of-use
assets
|
8.6
|
9.4
|
Deferred income
taxes
|
4.8
|
(3.6)
|
Change in other
operating balances
|
|
|
Accounts
receivable
|
8.2
|
18.8
|
Inventory
|
(1.8)
|
1.6
|
Prepayments and other
assets
|
3.9
|
8.7
|
Accounts
payable
|
5.1
|
(1.2)
|
Accruals and other
liabilities
|
1.1
|
(6.6)
|
Cash provided by
operating activities
|
144.7
|
137.5
|
|
|
|
Cash used in
investing activities:
|
|
|
Investment in
unconsolidated affiliate
|
(18.7)
|
-
|
Insurance
proceeds
|
11.3
|
-
|
Cash paid for
acquisition, net of cash received
|
(8.6)
|
(12.8)
|
Deposit for
acquisition
|
-
|
(2.6)
|
Proceeds from sales of
assets and equity investments, net
|
1.6
|
0.2
|
Purchase of property,
plant and equipment
|
(7.3)
|
(1.8)
|
Cash used in
investing activities
|
(21.7)
|
(17.0)
|
|
|
|
Cash used in
financing activities:
|
|
|
Proceeds from
convertible debenture issuance
|
-
|
92.2
|
Repayment of
convertible debentures
|
(18.5)
|
(88.1)
|
Common share
repurchases
|
(2.5)
|
(16.6)
|
Preferred share
repurchases
|
(8.0)
|
(8.0)
|
Repayment of corporate
and project-level debt
|
(72.3)
|
(100.3)
|
Cash payments for
vested LTIP units, including amounts withheld for taxes
|
(2.1)
|
(0.8)
|
Deferred financing
costs
|
-
|
(5.1)
|
Dividends paid to
preferred shareholders
|
(7.4)
|
(8.3)
|
Cash used in
financing activities:
|
(110.8)
|
(135.0)
|
|
|
|
Net increase
(decrease) in cash, restricted cash and cash equivalents
|
12.2
|
(14.5)
|
Cash, restricted cash
and cash equivalents at beginning of period
|
70.4
|
84.9
|
Cash, restricted cash
and cash equivalents at end of period
|
$82.6
|
$70.4
|
|
|
|
Supplemental cash
flow information
|
|
|
Interest
paid
|
$37.6
|
$41.3
|
Income taxes paid,
net
|
$2.3
|
$3.1
|
Accruals for
construction in progress
|
$0.3
|
($1.5)
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
Table 7 - Project
Income (Loss) and Project Adjusted EBITDA by Segment
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
December
31,
|
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
Project (loss)
income
|
|
|
|
|
Solid Fuel
|
($60.2)
|
$0.2
|
($49.8)
|
$19.7
|
Natural
Gas
|
16.9
|
12.5
|
68.5
|
33.3
|
Hydroelectric
|
9.4
|
10.3
|
36.0
|
35.8
|
Corporate
|
0.5
|
(3.0)
|
(7.9)
|
(0.6)
|
Total
|
($33.4)
|
$20.1
|
$46.8
|
$88.2
|
Project Adjusted
EBITDA
|
|
|
|
|
Solid Fuel
|
$1.3
|
$6.7
|
$32.7
|
$46.7
|
Natural
Gas
|
27.6
|
24.9
|
108.2
|
90.4
|
Hydroelectric
|
14.3
|
14.8
|
55.5
|
47.5
|
Corporate
|
(0.3)
|
0.2
|
(0.3)
|
0.5
|
Total
|
$42.9
|
$46.6
|
$196.1
|
$185.1
|
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, impairment charges, insurance loss (gain), other
(income) expenses 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 (Loss) Income to Project Adjusted
EBITDA
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
Unaudited
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
December
31,
|
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
Net (loss) income
attributable to Atlantic Power Corporation
|
($65.3)
|
$24.7
|
($42.6)
|
$36.8
|
Net income (loss)
attributable to preferred share dividends of a
subsidiary company
|
1.9
|
2.0
|
(1.2)
|
0.4
|
Net (loss)
income
|
($63.4)
|
$26.7
|
($43.8)
|
$37.2
|
Income tax expense
(benefit)
|
7.3
|
(7.5)
|
9.8
|
0.2
|
(Loss) income from
operations before income taxes
|
(56.1)
|
19.2
|
(34.0)
|
37.4
|
Administration
|
6.6
|
5.9
|
23.9
|
23.9
|
Interest
expense, net
|
11.0
|
12.0
|
44.0
|
52.7
|
Foreign exchange loss
(gain)
|
4.8
|
(13.7)
|
11.9
|
(22.8)
|
Other expense
(income), net
|
0.3
|
(3.4)
|
1.0
|
(3.0)
|
Project (loss)
income
|
($33.4)
|
$20.1
|
$46.8
|
$88.2
|
|
|
|
|
|
Reconciliation to
Project Adjusted EBITDA
|
|
|
|
|
Depreciation and
amortization
|
$20.3
|
$21.8
|
$80.7
|
$99.7
|
Interest expense,
net
|
0.4
|
0.8
|
2.5
|
3.4
|
Change in the fair
value of derivative instruments
|
0.6
|
1.3
|
8.9
|
(2.2)
|
Impairment
|
55.0
|
-
|
55.0
|
-
|
Insurance
loss
|
-
|
-
|
1.0
|
-
|
Other expense
(income), net
|
-
|
2.5
|
1.2
|
(4.0)
|
Project Adjusted
EBITDA
|
$42.9
|
$46.6
|
$196.1
|
$185.1
|
View original
content:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-fourth-quarter-and-year-end-2019-results-301013066.html
SOURCE Atlantic Power Corporation