Algonquin Power & Utilities Corp. Announces 2012 Fourth Quarter And Year End Financial Results
OAKVILLE, ON, March 14, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp. ("APUC") (TSX: AQN), today announced financial results for the fourth quarter and year ended December 31, 2012.
- For the fourth quarter of 2012, revenue from continuing operations was $143.1 million as compared to $70.5 million in the fourth quarter of 2011. The increase in revenue over the same period in 2011 is primarily related to results from the acquisitions of the New Hampshire gas and electric utility assets, Midwest gas utility assets, and the acquisition of an interest in the U.S. wind projects, all of which occurred in the second half of 2012. For the year 2012, APUC generated revenue from continuing operations of $369.9 million as compared to $270.7 million in 2011.
- Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") was $33.4 million in the fourth quarter of 2012 as compared to $24.3 million in the fourth quarter of 2011. The increase in adjusted EBITDA over the comparable period is primarily related to increased revenues as a result of the acquisition of the New Hampshire gas and electric utility assets, Midwest gas utility assets, and the U.S. wind projects, and increased demand at the electric distribution utility in California (the "California Utility"). APUC generated adjusted EBITDA of $106.2 million in 2012 as compared to $103.7 million in 2011.
- APUC reported adjusted net earnings of $5.4 million or $0.03 per share in the fourth quarter of 2012 as compared to adjusted net earnings of $3.6 million or $0.03 per share in the fourth quarter of 2011. For the year 2012, APUC reported adjusted net earnings of $20.8 million or $0.14 per share as compared to $38.3 million or $0.33 per share in 2011.
- On December 10, 2012, the acquisition of a 60% interest in the Minonk (200 MW) and Senate (150 MW) wind projects in the United States was completed by an APUC subsidiary. This is in addition to the completion of the acquisition of a 60% interest in the 50 MW Sandy Ridge wind project earlier in the year. Total consideration paid for the acquisition of the interest in the three wind projects was approximately U.S. $271.7 million.
- On December 21, 2012, APUC completed the acquisition of the remaining 49.999% ownership in California Pacific Utility Ventures LLC, which owns 100% of the California Utility assets. APUC acquired the remaining 49.999% interest from Emera Inc. ("Emera") through the issuance of 8.2 million APUC common shares, 4.8 million of which were issued on December 27, 2012, and the remaining 3.4 million shares issued on February 14, 2013.
- Subsequent to the end of the year, on January 1, 2013, an APUC subsidiary acquired the 109.5 MW contracted Shady Oaks wind powered generating station for total consideration of approximately US$148.9 million. The Shady Oaks wind power facility is located in Northern Illinois, approximately 80 km west of Chicago, Illinois and reached commercial operation in June 2012.
- Additionally, on February 11, 2013, an APUC subsidiary entered into an agreement to assume the rights to purchase the assets of New England Gas Company from an affiliate of Southern Union Company. New England Gas Company is a natural gas distribution utility serving over 50,000 customers in Massachusetts. The acquisition is subject to certain approvals and conditions, including state and federal regulatory approval, and is expected to close in the second half of 2013. Total consideration for the utility asset purchase is approximately U.S. $74 million, subject to working capital and closing adjustments.
- In 2012, pursuant to the Strategic Investment Agreement with Emera, APUC issued a total of 26.4 million shares for cash and share proceeds of $142.6 million as a result of the exercise of subscription receipts issued for certain previously announced transactions. Subsequent to the end of the year, APUC issued an additional 11.2 million shares to Emera pursuant to subscription agreements. As a result, Emera owns 46.1 million APUC common shares representing approximately 23% of the total outstanding common shares of the Company. On February 22, 2013, APUC announced that Emera agreed to subscribe to 3.96 million common shares of APUC at a price of $7.40 per share for total proceeds of approximately $29 million. The conversion of these subscription receipts will bring Emera's total investment in APUC to 24.5%.
- On November 9, 2012, APUC issued 4.8 million cumulative rate reset preferred shares, Series A at a price of $25 per share for aggregate gross proceeds of $120 million. The shares yield 4.5% annually for the initial six year period.
- On November 19, 2012, APUC entered into an agreement for a $30.0 million senior unsecured revolving credit facility with a Canadian chartered bank. The credit facility will be used for general corporate purposes and has a maturity date of November 19, 2015.
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