BOSTON, April 9, 2015 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or "the
Company") today announced the relocation of its headquarters from
the Financial District in Boston
to Dedham, Massachusetts as part
of its ongoing efforts to reduce corporate and other overhead
costs. The relocation will occur later this month. The
Company also provided the following update on its cost reduction
efforts:
- The relocation to Dedham will
result in a reduction in annual rental expense for its headquarters
of nearly 50%.
- The Company is in the process of closing its offices in
Seattle, Portland and outside of Chicago. In
addition, the Company will be reducing the size of its Toronto office.
- Including staff associated with its wind assets, which are
being sold, the corporate staff will be reduced by 25% this year
and by more than 50% from 2013.
- The Company now expects that total corporate general and
administrative expense of $38 million
in 2015 will be reduced to $28
million in 2016 as a result of these and other cost
reduction efforts. This represents an expected cumulative
reduction of approximately 48% from 2013.
"These cost-cutting efforts have been painful but necessary
elements of our plan to increase the value of the Company," said
James J. Moore, Jr., President and
Chief Executive Officer of Atlantic Power. "A $10 million reduction in corporate costs will
result in a meaningful improvement to our free cash flow
generation. In addition, we remain focused on reducing
leverage and associated interest expense as well as growing cash
flow by investing in our own fleet at returns well in excess of
those available in the external markets," Mr. Moore noted.
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets in the United
States and Canada. Atlantic Power's power generation
projects sell electricity to utilities and other large commercial
customers largely under long-term power purchase agreements, which
seek to minimize exposure to changes in commodity prices. Its
power generation projects have an aggregate gross electric
generation capacity of approximately 2,945 MW in which its
aggregate ownership interest is approximately 2,024 MW. Its current
portfolio consists of interests in twenty-eight operational power
generation projects across eleven states in the United States and two provinces in
Canada.
Atlantic Power trades on the New York Stock Exchange under the
symbol AT and on the Toronto Stock Exchange under the symbol
ATP. For more information, please visit the Company's website
at www.atlanticpower.com or contact:
Atlantic Power Corporation
Amanda Wagemaker, Investor
Relations
(617) 977-2700
info@atlanticpower.com
Copies of financial data and other publicly filed documents are
filed on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Forward-Looking Statements
Certain statements in this press release may include
"forward-looking statements" within the meaning of the U.S. federal
securities laws and "forward-looking information," as such term is
used in Canadian securities laws (referred to as "forward-looking
statements"). These forward-looking statements can generally
be identified by the use of the words "outlook," "objective,"
"may," "will," "should," "could," "would," "plan," "potential,"
"estimate," "project," "continue," "believe," "intend,"
"anticipate," "expect," "target" or the negatives of these words
and phrases 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:
- relocation to Dedham resulting
in a 50% reduction in annual rental expense for the Company's
headquarters;
- total corporate general and administrative expense of
$38 million in 2015 being reduced to
$28 million in 2016;
- the Company remaining focused on reducing leverage and
associated interest expense; and
- the Company growing cash flow by investing in its fleet at
returns well in excess of those available in the external
markets.
Forward-looking statements reflect the Company's current
expectations regarding future events and speak only as of the date
of this press release. These forward-looking statements are
based on a number of assumptions which may prove to be
incorrect. 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. A number of factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not
limited to, the factors discussed under "Risk Factors" in the
filings the Company makes from time to time with the U.S.
Securities and Exchange Commission and Canadian securities
regulators. The Company's business is both competitive and
subject to various risks. Although the forward-looking
statements contained in this press release are based upon what the
Company believes 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. Therefore, investors are urged not to place undue
reliance on the Company's forward-looking statements. These
forward-looking statements are made as of the date of this press
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.
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SOURCE Atlantic Power Corporation