From the Wires
Algonquin Power & Utilities Corp. Announces Third Quarter 2012 Financial Results
Nov. 14, 2012 06:21 PM
OAKVILLE, ON, Nov. 14, 2012 /PRNewswire/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN), today announced financial results for the third
quarter ended September 30, 2012.
For the third quarter of 2012, revenue was $99.0 million as compared to
$66.0 million in the third 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
Sandy Ridge Wind Project ("Sandy Ridge"), all of which occurred in the
third quarter of 2012. For the first nine months of 2012, APUC
generated revenue of $228.9 million as compared to $204.6 million in
the first nine months of 2011.
Adjusted earnings before interest, taxes, depreciation and amortization
("EBITDA") was $24.2 million in the third quarter of 2012 as compared
to $25.9 million in the third quarter of 2011. The decrease in adjusted
EBITDA over the comparable period is primarily related to lower results
from operations as a result of lower hydrology in Algonquin Power Co's
("APCo") renewable energy partially offset by the EBITDA generated by
the utility acquisitions in the quarter. APUC generated adjusted EBITDA
of $72.4 million for the first nine months of 2012 as compared to $81.0
million for the first nine months of 2011.
APUC reported adjusted net earnings of $3.3 million or $0.02 per share
in the third quarter of 2012 as compared to adjusted net earnings of
$21.5 million or $0.18 per share in the third quarter of 2011. For the
first nine months of 2012, APUC reported adjusted net earnings of $15.7
million or $0.11 per share as compared to $34.9 million or $0.31 per
share for the first nine months of 2011.
On July 1, 2012, APCo completed the acquisition of a 58.75% interest in
the 50 MW Sandy Ridge wind project in the United States from Gamesa Corporación Tecnológica, S.A. Total
consideration paid for the acquisition of the interest in Sandy Ridge
was approximately U.S. $29.7 million. Revenue from Sandy Ridge was
$0.7 million in the quarter.
On July 3, 2012, Liberty Utilities completed the acquisition of all
issued and outstanding shares of Granite State and EnergyNorth, both
from National Grid, for consideration of U.S. $285.0 million plus
working capital and other closing adjustments for a total purchase
price of U.S. $297.4 million. Net utility sales for these systems
totalled U.S. $17.1 million during the third quarter of 2012.
On August 1, 2012, Liberty Utilities completed the acquisitions of
regulated natural gas distribution utility assets located in Missouri,
Iowa, and Illinois from Atmos Energy Corporation for consideration of
U.S. $123.9 million plus working capital and other closing adjustments
for a total purchase price of U.S. $128.9 million. During the quarter,
net utility sales for these systems totalled U.S. $3.6 million during
the third quarter of 2012.
On July 20, 2012, Liberty Utilities entered into an agreement with
United Waterworks Inc. to acquire all issued and outstanding shares of
a regulated water distribution utility located in Pine Bluff, Arkansas
serving approximately 17,300 customers. Total purchase price is
approximately U.S. $28.6 million representing a 1.16x premium to
expected closing rate base of U.S. $24.6 million and subject to certain
working capital and other closing adjustments. Closing of the
transaction is subject to certain conditions including state and
federal regulatory approval, and is expected to occur in 2013.
On August 8, 2012, Liberty Utilities entered into an agreement with
Atmos Energy Corporation to acquire the regulated natural gas
distribution utility assets serving approximately 64,000 customers
located in the State of Georgia. Total purchase price is approximately
U.S. $140.7 million representing a 1.1x premium to rate base of U.S.
$128.1 million and is subject to certain working capital and other
closing adjustments. Closing of the transaction is subject to certain
conditions including state and federal regulatory approval, and is
expected to occur in 2013.
As a result of the successful completion of the previously mentioned
acquisitions, on August 9, 2012, the Board of Directors of APUC
approved a dividend increase of $0.03 annually bringing the total
annual dividend to $0.31, paid quarterly at the rate of $0.0775 per
Subsequent to the end of the quarter, 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.
"We are pleased at having closed four acquisitions in the quarter which
now positions APUC for significant growth over the next year in both
our non-regulated and regulated businesses", commented Ian Robertson,
Chief Executive Officer of APUC. "Our achievements in the third quarter
contributed to the ability for the Board of Directors to increase the
annual dividend by 11%, consistent with our strategy of delivering
total shareholder return comprised of attractive dividend yield and
APUC's supplemental information is available on the web site at www.algonquinpowerandutilities.com by using the Quarterly Reports link in the Top Links section of the
APUC will hold an earnings conference call at 10:00 a.m. eastern time on
Thursday, November 15, 2012, hosted by Chief Executive Officer, Ian
Robertson and Chief Financial Officer, David Bronicheski.
Conference call details are as follows:
Date: Thursday, November 15, 2012
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4860 or Local 416-644-3416.
Conference ID#: 4569905
For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4569905# from November 15, 2012 until
November 29, 2012.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified
portfolio of $1.7 billion of regulated and non-regulated utilities in
North America. The company's regulated utility business provides
regulated water, electricity and natural gas utility services to more
than 335,000 customers with a portfolio of 27 distribution utility
systems. The company's non-regulated electric generation subsidiary
includes 23 renewable energy facilities and 7 thermal energy facilities
representing more than 460 MW of installed capacity. Algonquin delivers
continuing growth through an expanding pipeline of renewable power and
clean energy projects, organic growth within its regulated utilities
and the pursuit of accretive acquisition opportunities. Common shares
and Preferred shares are traded on the Toronto Stock Exchange under the
symbol AQN and AQN.PR.A respectively. Visit Algonquin Power and
Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position or cash flows. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including assumptions
based on historical trends, current conditions and expected future
developments. Since forward-looking statements relate to future events
and conditions, by their very nature they require making assumptions
and involve inherent risks and uncertainties. APUC cautions that
although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the
possibility that actual results may differ materially from the
expectations set out in the forward-looking statements. Material risk
factors include those set out in the management's discussion and
analysis section of APUC's most recent annual report, quarterly report,
and APUC's Annual Information Form. Given these risks, undue reliance
should not be placed on these forward-looking statements, which apply
only as of their dates. Other than as specifically required by law,
APUC undertakes no obligation to update any forward-looking statements
or information to reflect new information, subsequent or otherwise.
SOURCE Algonquin Power & Utilities Corp.