DEDHAM, Mass., May 5, 2016 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today released its results for the three months ended
March 31, 2016.
Q1 2016 Financial Results
- Reported Project income of $28.7
million vs. $21.5 million in
Q1 2015; increase primarily due to higher water flows at Curtis
Palmer (2015 results exclude the Wind business)
- Achieved Project Adjusted EBITDA of $62.5 million vs. $58.6
million in Q1 2015; increase primarily attributable to
higher water flows at Curtis Palmer and Mamquam, partially offset
by modest decreases at Kenilworth and Naval Station and an
unfavorable exchange rate (2015 results exclude Wind business)
- Reported (GAAP) Cash provided by operating activities of
$29.4 million vs. $35.1 million in Q1 2015; last year's result
includes $10.8 million from the Wind
business
- Adjusted Cash Flows from Operating Activities were $37.3 million vs. $31.3
million in Q1 2015 (results exclude the Wind business in
2015 and restructuring charges in both years)
- Adjusted Free Cash Flow was $11.8
million vs. $3.9 million in Q1
2015; 2016 results include $4.7
million cash reimbursement for a customer-owned construction
project and are after $27.5 million
of debt repayments
Completed Significant Refinancing
- In April, completed the refinancing of Company's existing term
loan and revolver, gaining additional flexibility and extending
maturity dates by two and three years, respectively
- Redemption of 2017 convertible debentures at par plus accrued
interest expected to occur on May
13
- Following the redemption, Company will have no corporate debt
maturities prior to June 2019
- Remaining net proceeds of approximately $105 million may be used on behalf of additional
debt and equity repurchases and growth investments, at Company's
discretion
Revised 2016 Guidance
- Company has updated its 2016 guidance primarily to reflect the
impact of the recent refinancing on interest expense and debt
repayment
- No change to Project Adjusted EBITDA guidance of $200 to $220 million
- Reduced guidance for Adjusted Cash Flows from Operating
Activities to a range of $95 to $115
million from $110 to
$130 million
- Reduced guidance for Adjusted Free Cash Flow to a range of
$(20) to $0
million from $20 to
$40 million; revised guidance is
after an expected $96 million of
principal repayments on term loan and project debt
Other Recent Developments
- Quebec shareholder litigation
dismissed in April without payments by the Company; brings all
outstanding shareholder litigation to a close
- Repurchased $18.8 million
principal amount of convertible debentures and approximately
528,000 common shares under the normal course issuer bid (NCIB) in
Q1 2016
- Management and directors purchased a total of nearly 189,000
shares at an average price of $2.20
per share in Q1 2016
"Our recent refinancing transaction has significant benefits for
the Company, despite being done at a higher interest rate due to
difficult market conditions," said James J.
Moore, Jr., President and CEO of Atlantic Power.
"After redeeming our 2017 convertible debentures next month, we
will have no corporate debt maturities prior to 2019. We also
were able to extend the maturity dates of the new revolver and term
loan to 2021 and 2023, respectively. As a result, our
maturity profile has been considerably reshaped."
Mr. Moore continued, "Although the sweep provision of the new
term loan is likely to result in a higher allocation of our cash
flows to debt repayment, this is consistent with our commitment to
further deleveraging. We now have strong liquidity with
$105 million available from the
refinancing after redemption of our 2017 maturities, a more
flexible $200 million corporate
revolver and strong operating cash flow benefiting from the 50%
reductions in interest expense and overhead costs that we have
achieved since 2013."
"Our focus this year will be on increasing our intrinsic value
per share by further reducing debt, optimizing and investing in our
plants, and working to extend power purchase agreements where
economically feasible," said Mr. Moore. "With the completion
of the refinancing, we are now in a stronger position to add to
intrinsic value by growing externally and repurchasing our debt and
equity securities."
All amounts are in U.S. dollars and are approximate unless
otherwise indicated. Project Adjusted EBITDA, Cash Distributions
from Projects, Adjusted Cash Flows from Operating Activities and
Adjusted Free Cash Flow, are not recognized measures under
generally accepted accounting principles in the United States ("GAAP") and do not have
standardized meanings prescribed by GAAP; therefore, these measures
may not be comparable to similar measures presented by other
companies. Please see "Regulation G Disclosures" on page 14 of this
news release for an explanation and the GAAP reconciliation of
"Project Adjusted EBITDA", "Cash Distributions from Projects",
"Adjusted Cash Flows from Operating Activities" and "Adjusted Free
Cash Flow" as used in this news release. The Company has not
reconciled non-GAAP financial measures relating to individual
projects or the projects in discontinued operations to the directly
comparable GAAP measures due to the difficulty in making the
relevant adjustments on an individual project basis. The
Company has not provided a reconciliation of forward-looking
non-GAAP measures, due primarily to variability and difficulty in
making accurate forecasts and projections, as not all of the
information necessary for a quantitative reconciliation is
available to the Company without unreasonable efforts.
Atlantic Power
Corporation
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Table 1 – Selected
Results
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(in millions of
U.S. dollars, except as otherwise stated)
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Unaudited
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Three months ended
March 31
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2016
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2015
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Financial
Results(1)
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Project
revenue
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$106.4
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$111.3
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Project
income
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28.7
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21.5
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Project Adjusted
EBITDA
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62.5
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58.6
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Cash Distributions
from Projects
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55.7
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56.9
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Cash provided by
operating activities
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29.4
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35.1
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Adjusted Cash Flows
from Operating Activities
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37.3
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31.3
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Adjusted Free Cash
Flow (after debt repayments)
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11.8
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3.9
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Operating Results
(1)
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Aggregate power
generation (thousands of Net MWh)
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1,587.0
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1,520.0
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Weighted average
availability
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96.6%
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97.5%
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Results of
discontinued operations
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Project Adjusted
EBITDA
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$-
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$13.3
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Cash Distributions
from Projects
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-
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7.3
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Cash provided by
operating activities
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-
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10.8
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(1)
Canadian Hills, Meadow Creek, Goshen North, Idaho Wind and Rockland
(the "Wind Projects") were sold in June 2015 and are designated as
discontinued operations for the three months ended March 31,
2015. The results of discontinued operations are excluded
from Project revenue, Project income, Project Adjusted EBITDA, Cash
Distributions from Projects, Adjusted Cash Flows from Operating
Activities and Adjusted Free Cash Flow as presented in Table
1. The results for discontinued operations have also been
excluded from the aggregate power generation and weighted average
availability statistics shown in Table 1. Under GAAP, the
cash flows attributable to the Wind Projects are included in cash
flows from operating activities as shown on the Company's
Consolidated Statement of Cash Flows.
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Note: Project
Adjusted EBITDA, Cash Distributions from Projects, Adjusted Cash
Flows from Operating Activities and Adjusted Free Cash Flow are not
recognized measures under GAAP and do not have any standardized
meaning prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other companies. Please
refer to Tables 8 and 10-11 for reconciliations of these non-GAAP
measures to GAAP measures.
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Operating Results
The discussion of operating results excludes the Wind
Projects, which were sold in June
2015 and are included in discontinued operations for the
three months ended March 31,
2015.
Three Months Ended March 31,
2016
Project availability was 96.6% in the first quarter of
2016, a slight decrease from 97.5% in the year-ago period.
Decreased availability at the Naval plants, which underwent
maintenance outages and an outage requested by SDG&E for Naval
Training Center, was partially offset by higher availability at
Mamquam and Piedmont, both of
which had a scheduled maintenance outage in 2015.
Generation increased 4.4% in the first quarter of 2016
from the year-ago period, primarily due to Frederickson, which had
increased dispatch due to stronger demand and lower fuel gas
pricing as compared to 2015, and Curtis Palmer and Mamquam, which
experienced higher water flows. These increases were
partially offset by decreases at Manchief, due to reduced dispatch,
and the Naval plants, due to lower availability.
Financial Results
Table 2 provides a breakdown of Project income and Project
Adjusted EBITDA by segment for the three months ended March 31, 2016 as compared to the same period in
2015. The Company's Wind Projects were sold in June 2015 and are included in results of
discontinued operations for the three-month period ended
March 31, 2015. Results for
project income and Project Adjusted EBITDA exclude discontinued
operations. Accordingly, results of the Wind Projects are not
included in Project income or Project Adjusted EBITDA for the 2015
period shown in Table 2.
Atlantic Power
Corporation
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Table 2 – Segment
Results
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(in millions of
U.S. dollars, except as otherwise stated)
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Unaudited
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Three months ended
March 31
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2016
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2015
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Project income
(loss)
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East U.S.
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$16.1
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$10.9
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West U.S.
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(2.4)
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0.3
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Canada
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16.4
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13.0
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Un-allocated
Corporate
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(1.4)
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(2.7)
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Total
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28.7
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21.5
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Project Adjusted
EBITDA
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East U.S.
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$30.3
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$26.7
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West U.S.
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7.5
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10.0
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Canada
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24.8
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23.7
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Un-allocated
Corporate
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(0.1)
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(1.8)
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Total
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62.5
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58.6
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The results of the
Wind Projects are included in discontinued operations and are
excluded from Project income and Project Adjusted EBITDA as
presented in Table 2.
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Note: Project
Adjusted EBITDA is not a recognized measure under GAAP and does not
have any standardized meaning prescribed by GAAP; therefore, this
measure may not be comparable to similar measures presented by
other companies. Please refer to Tables 8 and 10-11 for a
reconciliation of this non-GAAP measure to a GAAP measure.
The Company has not reconciled this non-GAAP financial measure
relating to individual project segments to the directly comparable
GAAP measure due to the difficulty in making the relevant
adjustments on a segment basis.
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Three Months Ended March 31,
2016
Project income (loss) is a GAAP measure that
can fluctuate significantly due to non-cash adjustments to
"mark-to-market" the fair value of derivatives. Non-cash
goodwill impairment charges and gains or losses on the sale of
assets are included in project income and can also affect
year-over-year comparisons. None of these items are included
in Project Adjusted EBITDA.
In the first quarter of 2016, the Company reported project
income of $28.7 million as compared
to project income of $21.5 million in
the year-ago period. The $7.2
million increase was driven primarily by Curtis Palmer and
Mamquam due to higher water flows and Williams Lake due to lower depreciation,
partially offset by currency translation impact and other
factors.
Project Adjusted EBITDA includes the
proportional share of Project Adjusted EBITDA from the Company's
equity method projects. Project Adjusted EBITDA is a non-GAAP
measure. Table 8 of this press release provides a
reconciliation of Project Adjusted EBITDA to Project
income.
Project Adjusted EBITDA increased $3.9
million to $62.5 million in
the first quarter of 2016 from $58.6
million in the first quarter of 2015. The most
significant driver of higher EBITDA was higher water flows at
Curtis Palmer and Mamquam. In addition, the Un-allocated
Corporate segment improved by $1.7
million in the first quarter of 2016 from the year-ago
period, primarily due to lower development and related
expenses. These positive factors were partially offset
by lower Project Adjusted EBITDA at Naval Station, which had a
maintenance outage in the current period that did not occur in the
prior period, and Kenilworth,
which experienced softer PJM pricing in the current period.
Currency had an approximate $(2.6)
million impact on Project Adjusted EBITDA, with an average
exchange rate for the Canadian to U.S. dollar of 1.37 in the
first quarter of 2016 versus 1.24 for the year-ago period.
However, from an overall cash standpoint, that impact was partially
offset by the benefit of the stronger U.S. dollar on the Company's
Canadian-denominated interest and dividend payments.
Corporate-level G&A expense (shown as
"Administration" on the Consolidated Statements of Operations)
decreased $3.3 million to
$6.1 million in the first quarter of
2016 from $9.4 million a year
ago. The improvement was due primarily to $3.9 million of severance expenses recorded in
the year-ago period.
Cash Flow Metrics
Cash provided by operating activities (GAAP) of
$29.4 million in the first quarter of
2016 decreased $5.7 million from
$35.1 million in the first quarter of
2015. The decrease was primarily attributable to the loss of
operating cash flows from the Wind Projects, which contributed
$10.8 million in the year-ago
period. This decrease was partially offset by higher Project
Adjusted EBITDA, lower interest and corporate G&A expenses and
other factors.
Cash Distributions from Projects and the adjusted cash flow
metrics discussed below, all of which are non-GAAP measures,
exclude cash flows from projects classified as discontinued
operations. Adjusted Cash Flows from Operating Activities,
which excludes discontinued operations, changes in working capital,
severance, restructuring charges, acquisition and disposition
expenses and debt prepayment and redemption costs, is a measure of
the cash flow available to the Company to make principal repayments
on its debt (primarily through amortization and the cash sweep
under the term loan), invest in its fleet through required or
discretionary capital expenditures, and make dividend payments to
preferred shareholders. Adjusted Free Cash Flow is after debt
repayment or amortization, capital expenditures and preferred
dividends, but is before any discretionary uses of cash flow,
including repurchases of debt and equity securities, external
growth investments or additional internal capex projects.
Table 10 on page 16 of this press release provides a reconciliation
of the Company's non-GAAP cash flow metrics to cash flows from
operating activities. Prior to 2016, the Company had
presented another non-GAAP cash flow metric, Free Cash Flow, which
was used primarily to evaluate the Company's ability to generate
cash flow available for the payment of common dividends. The
Company has discontinued use of that metric with the elimination of
its common dividend in February
2016.
Cash Distributions from Projects decreased $1.2 million to $55.7
million for the first quarter of 2016 from $56.9 million for the same period in 2015.
The decrease was primarily due to Chambers, which under the new
project debt agreement in 2014 resulted in a nine-month
distribution in January 2015 versus a
six-month distribution in January
2016; Williams Lake due to
a true-up payment to BC Hydro, and a number of other factors across
multiple plants. This net decrease was partially offset by a
construction cost reimbursement at Morris and an increase at Curtis
Palmer, which benefited from higher water flows.
Adjusted Cash Flows from Operating Activities increased
$6.0 million to $37.3 million in the first quarter of 2016 from
$31.3 million in the year-ago period,
primarily because of higher Project Adjusted EBITDA, lower cash
interest payments and lower corporate G&A expense.
Adjusted Free Cash Flow increased to $11.8 million in the first quarter of 2016 from
$3.9 million in the first quarter of
2015. The $7.9 million increase
was primarily attributable to higher Adjusted Cash Flows from
Operating Activities and a reimbursement for a customer-owned
construction project at Morris, which benefited cash flow by
$4.7 million. These positive
factors were partially offset by higher term loan facility
repayments of $25.3 million versus
$21.3 million in the year-ago
period. Total principal repayments were $27.5 million versus $23.8
million in 2015. (The Company also made discretionary
debt repurchases in both the 2016 and 2015 periods, but these are
not included in Adjusted Free Cash Flow.)
Results of Discontinued Operations
The Wind Projects were sold in June
2015 and are a component of discontinued operations for the
three months ended March 31,
2015. For the first quarter of 2015, the Wind projects had
Project Adjusted EBITDA of $13.3
million and Cash provided by operating activities of
$10.8 million.
Liquidity
As shown in Table 3, the Company's liquidity at March 31, 2016 was $178
million, including $64 million
of unrestricted cash. The total was virtually unchanged from
the December 31, 2015 level, although
the cash balance was lower primarily due to repurchases of
convertible debentures and common shares during the quarter.
The reduction in cash was offset by a reduction in required letters
of credit following an upgrade of the Company's credit rating in
February.
In April the Company completed a refinancing of its term loan
and revolving credit facilities. Pro forma for that
transaction, as described in Table 3, the Company's liquidity at
March 31, 2016 was $263.5 million.
Atlantic Power
Corporation
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Table 3 –
Liquidity (in millions of U.S. dollars)
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Unaudited
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Pro
Forma(1)
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December 31,
2015
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March 31,
2016
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March 31,
2016
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Revolver
capacity
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$210.0
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$210.0
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$200.0
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Letters of credit
outstanding
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(104.0)
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(96.3)
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(105.8)
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Unused borrowing
capacity
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106.0
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113.7
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94.2
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Unrestricted
cash
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72.4
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64.3
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169.3
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Total
Liquidity
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$178.4
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$178.0
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$263.5
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(1) Pro
forma for the April 2016 refinancing of the Company's term loan and
revolver, as follows:
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a) New revolver
capacity $200 million versus previous revolver $210
million.
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b) Increased letters
of credit associated with debt service reserve under new term
loan.
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c) Net cash proceeds
after debt redemption and fees of approximately $105
million.
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Note: Liquidity
numbers presented do not include restricted cash of $10.0 million
at March 31, 2016 and $15.2 million at December 31,
2015.
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Other Financial Updates
NCIB
In the first quarter of 2016, the Company repurchased
$18.8 million principal amount of
convertible debentures under the NCIB. It also repurchased
approximately 528,000 common shares during the quarter, bringing
the total since the NCIB was implemented in December to
approximately 575,000 shares, at a total cost of approximately
$1.1 million. These share
repurchases were previously reported in the Company's March 7, 2016 press release.
Debt Reduction
During the first quarter of 2016, the Company amortized
$25.3 million of the APLP term loan
and $2.2 million of project-level
debt. As discussed previously, it also repurchased
$18.8 million principal amount of
convertible debentures under the NCIB. Total debt reduction
during the quarter was thus approximately $46.3 million.
Refinancing of Term Loan and Revolver
In April 2016, the Company closed
a new $700 million senior secured
term loan and $200 million revolving
credit facility. Proceeds from the term loan were used to
redeem the existing $447.9 million
term loan and to redeem the Company's 2017 convertible
debentures. Net proceeds after transaction costs and debt
repayment were approximately $105
million, which are available to the Company for any
corporate purpose, including repurchases of convertible debentures
maturing in 2019 and repurchase of preferred and common
equity. Cash expenses associated with the transaction
totaling approximately $14.4 million
will be recorded in the second quarter as deferred financing costs
and amortized to interest expense over the life of the loan.
In addition, in April the Company recorded non-cash writeoffs of
deferred financing costs of $30
million associated with the previous term loan and
$1.3 million associated with the 2017
convertible debentures.
Following the redemption of the 2017 convertible debentures, the
Company has no corporate debt maturities prior to June 2019.
The reshaping of the Company's maturity profile is further improved
by the later maturity dates for the new term loan (2023 versus 2021
previously) and the new revolver (2021 versus 2018
previously).
The new term loan carried an original issue discount of
3%. The interest rate on the loan is the Adjusted Eurodollar
Rate (as defined in the credit agreement) plus 5.00%. The
previous term loan was issued at a 1% discount and a spread of
3.75%. The new term loan is subject to mandatory 1% annual
amortization and mandatory prepayment via the greater of a 50% cash
sweep or such other amount that is required to achieve a targeted
declining debt balance specified in the credit agreement for each
quarter through the maturity date of the
loan.
Although initially the transaction will result in a higher debt
balance, debt reduction is expected to occur over time through
amortization and additional discretionary debt repurchases,
consistent with the Company's commitment to additional
delevering. The new revolver provides the Company additional
flexibility with respect to financing growth and retiring debt
securities.
Redemption of 2017 Convertible Debentures
On April 13, 2016, the Company
called for redemption at par plus accrued interest its outstanding
Cdn$67.2 million Series A Convertible
Debentures and its Cdn$75.8 million
Series B Convertible Debentures. The date of redemption is
May 13, 2016. The redemption
will be funded with US$111.8 million
of proceeds from the term loan refinancing.
Operations and Capex Updates
Optimization Investments
The Company continues to expect to make approximately
$4 million of optimization-related
investments in its projects in 2016, with the majority of those for
upgrades to a boiler and two gas turbines at Morris and a spillway
upgrade project at Curtis Palmer.
The Company also continues to expect to realize a cash flow
benefit of approximately $10 million
in 2016 from investments made in 2013 through 2015 totaling
$22 million. The 2015
contribution from these investments was approximately $6 million.
Maintenance and Capex
The Company now expects to have capital expenditures of
approximately $14 million in 2016
versus its previous expectation of $16 to
$19 million. The reduction is primarily attributable
to a deferral of the Tunis
repowering to 2017; previously, the Company had anticipated making
initial outlays for the project in 2016. In addition, the
previous range had allowed for an additional optimization project
that is now less likely to be undertaken in 2016. The 2016
capex forecast of $14 million
includes $6 million for initial
outlays for a new fuel shredder at Williams Lake. Timing of
this investment is subject to receipt of an amended air permit and
an extension of the existing contract with BC Hydro. Delays
in receiving either could result in the expenditures being deferred
into 2017. The Company expects to provide an update later in
the year. In addition to the $14
million of capital expenditures, the Company expects to
incur maintenance expense in 2016 of approximately $46 million.
2016
Guidance
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Atlantic Power
Corporation
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Table 4 – FY
2016 Guidance
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(in millions of
U.S. dollars, except as otherwise stated)
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Unaudited
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Initial
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Revised
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FY
2016
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FY
2016
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Guidance
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Guidance
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(3/7/16)
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(5/5/16)
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Project Adjusted
EBITDA
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$200 -
$220
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$200 -
$220
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Adjusted Cash Flows
from Operating Activities (1)
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$110 -
$130
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$95 - $115
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Adjusted Free Cash
Flow (after debt repayment) (2)
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$20 - $40
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$(20) - $0
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(1)
Adjusted Cash Flows from Operating Activities is used to evaluate
cash flows from operating activities without the effects of changes
in working capital balances, acquisition and disposition expenses,
litigation expenses, severance and restructuring charges, debt
prepayment and redemption costs and cash provided by or used in
discontinued operations. The intent is to reflect normal
operations and remove items that are not reflective of the
long-term operations of the business.
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(2)
Adjusted Free Cash Flow is defined as Adjusted Cash Flows from
Operating Activities less project-level debt repayments and
amortization of the term loan; capex; and distributions to
noncontrolling interests, including preferred share
dividends.
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Note: Project
Adjusted EBITDA, Adjusted Cash Flows from Operating Activities and
Adjusted Free Cash Flow are not recognized measures under GAAP and
do not have any standardized meaning prescribed by GAAP; therefore,
these measures may not be comparable to similar measures presented
by other companies. The Company has not provided a
reconciliation of forward-looking non-GAAP measures, due primarily
to variability and difficulty in making accurate forecasts and
projections, as not all of the information necessary for a
quantitative reconciliation is available to the Company without
unreasonable efforts.
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Table 4 shows the Company's full-year 2016 guidance, as
initially provided on March 7, 2016
and as revised on May 5, 2016 for the
impact of the April 2016 refinancing
of the term loan and revolver, repayment of the 2017 convertible
debentures and anticipated use of a significant portion of the
remaining net proceeds.
- Project Adjusted EBITDA of $200
to $220 million, unchanged.
- Adjusted Cash Flows from Operating Activities of
$95 to $115 million, which is reduced
by $15 million from the previous
range of $110 to $130 million. The
primary driver of the reduction is higher cash interest expense
associated with the new term loan (larger size, higher rate) for
the remainder of 2016, partially offset by cash interest savings
following redemption of the 2017 convertible debentures and other
debt reduction.
- Adjusted Free Cash Flow of $(20) to $0
million, which is $40 million
lower than the previous range of $20 to $40
million. Drivers of the reduction are lower Adjusted Cash
Flows from Operating Activities ($15
million) and increased amortization associated with the new
term loan ($25 million; expected
sweep payments of $60 million in the
remainder of the year versus $35
million previously). The cash sweep provision of the new
term loan is a minimum of 50% each quarter, but may be higher than
50% in order to achieve declining quarter-end debt targets
specified in the credit agreement. Sweep payments under the
previous term loan were a level 50%.
Previously, the Company had provided Project Adjusted EBITDA
guidance for Atlantic Power Limited Partnership (APLP) on a
standalone basis. With the completion of the refinancing in
April 2016, the term loan at APLP has
been repaid. The new term loan is at an intermediate holding
company, APLP Holdings, and all but one of the Company's projects
has been included in the collateral package. For that reason
the Company is no longer providing standalone guidance for
APLP.
Other Recent Developments
Share Purchases by Insiders
In the first quarter of 2016, one senior executive and two
directors of the Company purchased a total of approximately 189,000
common shares of the Company at an average price of US$2.20 per share. Including those made in
2015, purchases by management and directors total approximately
1.24 million common shares. The average purchase price for
these purchases was US$2.29 per
share. There have been no sales of shares by officers or
directors this year, other than those sold automatically for tax
withholding purposes upon vesting under the Long-Term Incentive
Plan.
Shareholder Litigation
On April 19, 2016, the Superior
Court of Quebec authorized the
discontinuance of the proposed class action suit in Quebec.
There were no payments required by the Company. This follows
the dismissal of the other two proposed securities class actions in
the United States in November 2015 and in Ontario in December
2015, neither of which required any payments by the
Company.
Supplementary Financial Information
For further information, attached to this news release is a
summary of Project Adjusted EBITDA by segment for the three months
ended March 31, 2016 and 2015 (Table
8) with a reconciliation to project income (loss); a bridge from
Project Adjusted EBITDA to Cash Distributions from Projects by
segment for the three months ended March 31,
2016 and 2015 (Tables 9A and 9B); reconciliations of
Adjusted Cash Flows from Operating Activities and Adjusted Free
Cash Flow to cash flows from operating activities for the three
months ended March 31, 2016 and 2015
(Table 10); and a summary of Project Adjusted EBITDA by project for
the three months ended March 31, 2016
and 2015 (Table 11).
Investor Conference Call and Webcast
Atlantic Power's management team will host a telephone
conference call on Friday, May 6,
2016 at 8:30 AM ET. An
accompanying slide presentation will be available on the Company's
website prior to the call.
Conference Call / Webcast Information:
Date: Friday, May 6,
2016
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 10083861 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 5, 2016 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 owns and operates a diverse fleet of power
generation assets in the United
States and Canada. The Company'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.
Atlantic Power's power generation projects in operation have an
aggregate gross electric generation capacity of approximately 2,138
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,500 MW. The Company's current portfolio
consists of interests in twenty-three operational power generation
projects across nine 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
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of certain 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.
*********************************************************************************************************************************Cautionary
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 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," "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 believes that the recent refinancing transaction
has significant benefits for the Company;
- the Company expects that internal efforts will drive growth in
intrinsic value per share;
- the Company expects that the refinancing positions the Company
to credibly grow the business externally and to undertake
repurchases of debt and equity securities;
- the Company expects that debt reduction will occur over time
through amortization and additional discretionary debt
repurchases;
- the Company expects to redeem the 2017 convertible debentures
on May 13, 2016, funded with
$111.8 million of proceeds from the
term loan refinancing, and expects to have no corporate debt
maturities prior to June 2019
following the redemption of those debentures;
- the Company expects that the new revolver will provide
additional flexibility with respect to financing growth and
retiring debt securities;
- the Company expects that discretionary optimization investments
in its fleet will be approximately $4
million in 2016;
- the Company expects to realize a cash flow benefit from
discretionary investments in its existing projects of approximately
$10 million in 2016;
- the Company expects that in 2016, capital expenditures will
total approximately $14 million,
before a $5 million credit for a
reimbursement for a customer-owned construction project, and
maintenance expense will total approximately $46 million;
- timing of capital expenditures for a new fuel shredder at
Williams Lake and the timing and
probability of receipt of an amended air permit and contract
extension;
- 2016 Project Adjusted EBITDA will be in the range of
$200 to $220 million;
- 2016 Adjusted Cash Flows from Operating Activities will be in
the range of $95 to $115
million;
- 2016 Adjusted Free Cash Flow will be in the range of
$(20) to $0
million, after an expected $96
million of principal repayments;
- debt repayment under the sweep provisions of the new term loan
will approximate $60 million in the
remainder of the year versus $35
million under the previous term loan, and the cash sweep
provision may be higher than 50% in order to achieve targeted
quarter-end debt balances specified in the credit agreement;
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
Securities and Exchange Commission from time to time for a detailed
discussion of the risks and uncertainties affecting the Company,
including, without limitation, the outcome or impact of the
Company's business plan, including the objective of enhancing the
value of its existing assets through optimization investments and
commercial activities, delevering its balance sheet to improve its
cost of capital and ability to compete for new investments, and
utilizing its core competencies to create proprietary investment
opportunities, and the Company's ability to raise additional
capital for growth and/or debt reduction, and the outcome or impact
on the Company's business of any such actions. 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. The Company's ability to
achieve its longer-term goals, including those described in this
news release, is based on significant assumptions relating to and
including, among other things, the general conditions of the
markets in which it operates, revenues, internal and external
growth opportunities, its ability to sell assets at favorable
prices or at all and general financial market and interest rate
conditions. The Company's actual results may differ, possibly
materially and adversely, from these goals.
Atlantic Power
Corporation
|
|
|
Table 5 –
Consolidated Balance Sheet (in millions of U.S.
dollars)
|
|
|
(Unaudited)
|
|
|
|
March
31,
|
December
31,
|
|
2016
|
2015
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$64.3
|
$72.4
|
Restricted
cash
|
10.0
|
15.2
|
Accounts
receivable
|
40.0
|
39.6
|
Inventory
|
0.2
|
-
|
Prepayments and other
current assets
|
14.1
|
16.9
|
Assets held for
sale
|
8.7
|
8.3
|
Income taxes
receivable
|
3.2
|
3.5
|
Other current
assets
|
2.6
|
4.4
|
Total current
assets
|
143.1
|
160.3
|
|
|
|
Property, plant and
equipment, net
|
777.8
|
777.7
|
Equity investments in
unconsolidated affiliates
|
292.6
|
286.2
|
Power purchase
agreements and intangible assets, net
|
299.9
|
308.9
|
Goodwill
|
134.5
|
134.5
|
Derivative
instruments asset
|
0.4
|
0.3
|
Other
assets
|
11.7
|
6.7
|
Total
assets
|
$1,660.0
|
$1,674.6
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$4.1
|
$6.9
|
Accrued
interest
|
6.8
|
1.6
|
Other accrued
liabilities
|
25.3
|
28.8
|
Current portion of
long-term debt
|
15.7
|
15.8
|
Current portion of
derivative instruments liability
|
35.5
|
36.7
|
Other current
liabilities
|
1.7
|
2.5
|
Total current
liabilities
|
89.1
|
92.3
|
|
|
|
Long-term
debt
|
666.9
|
682.7
|
Convertible
debentures
|
271.4
|
277.7
|
Derivative
instruments liability
|
26.5
|
20.8
|
Deferred income
taxes
|
85.5
|
85.7
|
Power purchase and
fuel supply agreement liabilities, net
|
27.4
|
27.0
|
Other long-term
liabilities
|
55.0
|
53.2
|
Total
liabilities
|
$1,221.8
|
$1,239.4
|
|
|
|
Equity
|
|
|
Common shares, no par
value, unlimited authorized shares; 122,083,528 and
122,153,082 issued and outstanding at March 31, 2016 and
December 31, 2015, respectively
|
1,290.2
|
1,290.6
|
Accumulated other
comprehensive loss
|
(121.2)
|
(139.3)
|
Retained
deficit
|
(952.1)
|
(937.4)
|
Total Atlantic Power
Corporation shareholders' equity
|
216.9
|
213.9
|
Preferred shares
issued by a subsidiary company
|
221.3
|
221.3
|
Total
equity
|
438.2
|
435.2
|
Total liabilities and
equity
|
$1,660.0
|
$1,674.6
|
Atlantic Power
Corporation
|
|
|
|
|
|
Table 6 –
Consolidated Statements of Operations
|
|
|
|
|
|
(in millions of
U.S. dollars, except per share amounts)
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March
31,
|
|
|
|
|
2016
|
2015
|
Project
revenue:
|
|
|
|
|
|
Energy
sales
|
|
|
|
$52.5
|
$54.0
|
Energy capacity
revenue
|
|
|
|
31.9
|
33.5
|
Other
|
|
|
|
22.0
|
23.8
|
|
|
|
|
106.4
|
111.3
|
Project
expenses:
|
|
|
|
|
|
Fuel
|
|
|
|
38.9
|
46.2
|
Operations and
maintenance
|
|
|
|
21.2
|
21.5
|
Development
|
|
|
|
-
|
1.1
|
Depreciation and
amortization
|
|
|
|
24.8
|
28.0
|
|
|
|
|
84.9
|
96.8
|
Project other income
(expense):
|
|
|
|
|
|
Change in fair value
of derivative instruments
|
|
|
|
(1.2)
|
(1.7)
|
Equity in earnings of
unconsolidated affiliates
|
|
|
|
10.7
|
10.8
|
Interest expense,
net
|
|
|
|
(2.1)
|
(2.1)
|
Other income
(expense), net
|
|
|
|
(0.2)
|
-
|
|
|
|
|
7.2
|
7.0
|
Project income
(loss)
|
|
|
|
28.7
|
21.5
|
|
|
|
|
|
|
Administrative and
other expenses (income):
|
|
|
|
|
|
Administration
|
|
|
|
6.1
|
9.4
|
Interest,
net
|
|
|
|
16.6
|
25.7
|
Foreign exchange
gain
|
|
|
|
19.8
|
(32.2)
|
Other income,
net
|
|
|
|
(2.5)
|
(1.4)
|
|
|
|
|
40.0
|
1.5
|
(Loss) income from
continuing operations before income taxes
|
|
|
|
(11.3)
|
20.0
|
Income tax expense
(benefit)
|
|
|
|
1.6
|
(4.6)
|
(Loss) income from
continuing operations
|
|
|
|
(12.9)
|
24.6
|
Net income (loss)
from discontinued operations, net of tax (1)
|
|
|
|
-
|
(12.3)
|
Net income
(loss)
|
|
|
|
(12.9)
|
12.3
|
Net income (loss)
attributable to noncontrolling interests
|
|
|
|
-
|
(7.5)
|
Net income
attributable to preferred share dividends of a subsidiary
company
|
|
|
2.0
|
2.3
|
Net income (loss)
attributable to Atlantic Power Corporation
|
|
|
|
($14.9)
|
$17.5
|
|
|
|
|
|
|
Basic and diluted
earnings per share:
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Atlantic Power
Corporation
|
|
|
($0.12)
|
$0.17
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
-
|
($0.03)
|
Net income (loss)
attributable to Atlantic Power Corporation
|
|
|
|
($0.12)
|
$0.14
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
|
|
|
121.9
|
121.5
|
Diluted
|
|
|
|
121.9
|
122.4
|
|
|
|
|
|
|
Dividends paid per
common share:
|
|
|
|
$-
|
$0.02
|
(1) Includes
contributions from the Wind Projects, which are components of
discontinued operations.
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
|
|
|
|
Table 7 –
Consolidated Statements of Cash Flows (in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
2016
|
2015
|
Cash provided by
operating activities:
|
|
|
|
|
Net Income
(loss)
|
|
|
$(12.9)
|
$12.3
|
Adjustments to
reconcile to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
|
24.8
|
38.1
|
Gain on purchase and
cancellation of convertible debentures
|
|
|
(2.5)
|
(1.4)
|
Loss on disposal of
fixed assets
|
|
|
0.2
|
-
|
Stock-based
compensation expense
|
|
|
0.6
|
0.4
|
Equity in earnings
from unconsolidated affiliates
|
|
|
(10.7)
|
(9.9)
|
Distributions from
unconsolidated affiliates
|
|
|
4.3
|
7.2
|
Unrealized foreign
exchange gain
|
|
|
20.1
|
(32.8)
|
Change in fair value
of derivative instruments
|
|
|
1.2
|
9.0
|
Change in deferred
income taxes
|
|
|
0.1
|
(3.9)
|
Change in other
operating balances
|
|
|
|
|
Accounts
receivable
|
|
|
(0.5)
|
6.0
|
Inventory
|
|
|
2.8
|
3.6
|
Prepayments,
refundable income taxes and other assets
|
|
|
(10.4)
|
4.3
|
Accounts
payable
|
|
|
1.4
|
(5.5)
|
Accruals and other
liabilities
|
|
|
10.9
|
7.7
|
Cash provided by
operating activities
|
|
|
29.4
|
35.1
|
|
|
|
|
|
Cash provided by
investing activities:
|
|
|
|
|
Capitalized
development costs
|
|
|
5.2
|
9.7
|
Reimbursement of
construction cost
|
|
|
-
|
(0.8)
|
Purchase of property,
plant and equipment
|
|
|
4.7
|
-
|
Change in restricted
cash
|
|
|
(0.7)
|
(1.3)
|
Cash provided by
investing activities
|
|
|
9.2
|
7.6
|
|
|
|
|
|
Cash used in
financing activities:
|
|
|
|
|
Common share
repurchases
|
|
|
(0.9)
|
-
|
Repayment of corporate
and project-level debt
|
|
|
(27.5)
|
(32.8)
|
Repayment of
convertible debentures
|
|
|
(16.3)
|
(5.7)
|
Dividends paid to
common shareholders
|
|
|
-
|
(2.9)
|
Dividends paid to
noncontrolling interests
|
|
|
-
|
(2.7)
|
Dividends paid to
preferred shareholders
|
|
|
(2.0)
|
(2.3)
|
Cash used in
financing activities
|
|
|
(46.7)
|
(46.4)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(8.1)
|
(3.7)
|
Less cash at
discontinued operations
|
|
-
|
(6.2)
|
Cash and cash
equivalents at beginning of period at discontinued
operations
|
|
-
|
3.9
|
Cash and cash
equivalents at beginning of period
|
|
|
72.4
|
106.1
|
Cash and cash
equivalents at end of period
|
|
|
$64.3
|
$100.1
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Interest
paid
|
|
|
$8.9
|
$11.7
|
Income taxes paid,
net
|
|
|
$0.9
|
$0.4
|
Accruals for
construction in progress
|
|
|
$1.0
|
-
|
Regulation G 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. 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 (loss)
is provided in Table 8 below. Investors are cautioned that
the Company may calculate this measure in a manner that is
different from other companies.
Cash Distributions from Projects, Adjusted Cash Flows from
Operating Activities and Adjusted Free Cash Flow are not
measures recognized under GAAP and do not have standardized
meanings prescribed by GAAP, and are therefore unlikely to be
comparable to similar measures presented by other companies.
Adjusted Cash Flows from Operating Activities is used to evaluate
cash flows from operating activities without the effects of changes
in working capital balances, debt prepayment and redemption costs,
acquisition and disposition expenses, litigation expenses,
severance and restructuring charges, and cash provided by or used
in discontinued operations. The intent is to reflect normal
operations and remove items that are not reflective of the
long-term operations of the business. Adjusted Free Cash Flow
is defined as Adjusted Cash Flow from Operating Activities less
project-level debt repayments and amortization of the term loan;
capex; and distributions to noncontrolling interest, including
preferred dividends.
A bridge of Project Adjusted EBITDA to Cash Distributions from
Projects is provided in Tables 9A and 9B on page 15.
Reconciliations of Adjusted Free Cash Flow and Adjusted Cash
Flows from Operating Activities to cash flows from operating
activities are provided in Table 10 on page 16 of this
release. Investors are cautioned that the Company may
calculate these measures in a manner that is different from other
companies.
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
|
|
Table 8 – Project
Adjusted EBITDA by Segment (in millions of U.S.
dollars)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
|
|
|
|
|
|
|
2016
|
2015
|
Project Adjusted
EBITDA by segment
|
|
|
|
|
|
|
|
East U.S.
|
|
|
|
|
|
|
|
$30.3
|
$26.7
|
West U.S.
|
|
|
|
|
|
|
|
7.5
|
10.0
|
Canada
|
|
|
|
|
|
|
|
24.8
|
23.7
|
Un-allocated
Corporate
|
|
|
|
|
|
|
|
(0.1)
|
(1.8)
|
Total
|
|
|
|
|
|
|
|
$62.5
|
$58.6
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
project income
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
$29.9
|
$32.9
|
Interest expense,
net
|
|
|
|
|
|
|
|
2.5
|
2.5
|
Change in the fair
value of derivative instruments
|
|
|
|
|
1.2
|
1.7
|
Other (income)
expense
|
|
|
|
|
|
|
|
0.2
|
-
|
Project income
(loss)
|
|
|
|
|
|
|
|
$28.7
|
$21.5
|
Notes: Table 8
excludes the Wind Projects, which comprise the entirety of the
former Wind segment. The Wind Projects are designated as
discontinued operations for the three months ended March 31,
2015.
|
Table 8 presents
Project Adjusted EBITDA, which is not a recognized measure under
GAAP and does not have any standardized meaning prescribed by GAAP;
therefore, this measure may not be comparable to a similar measure
presented by other companies.
|
Atlantic Power
Corporation
|
Table 9A – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Three months ended
March 31, 2016
|
Unaudited
|
|
Project Adjusted
EBITDA
|
Repayment of
long-term debt
|
Interest expense,
net
|
Capital
expenditures
|
Other,
including
changes in
working capital
|
Cash
Distributions
from
Projects
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$19.4
|
|
($0.6)
|
|
($1.9)
|
|
$4.0
|
|
$3.2
|
|
$24.1
|
Equity
method
|
10.9
|
|
(1.5)
|
|
(0.6)
|
|
(0.0)
|
|
(3.5)
|
|
5.2
|
Total
|
30.3
|
|
(2.1)
|
|
(2.5)
|
|
4.0
|
|
(0.3)
|
|
29.3
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
4.2
|
|
-
|
|
-
|
|
-
|
|
1.3
|
|
5.4
|
Equity
method
|
3.3
|
|
-
|
|
-
|
|
(0.0)
|
|
(0.6)
|
|
2.7
|
Total
|
7.5
|
|
-
|
|
-
|
|
(0.0)
|
|
0.6
|
|
8.1
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
24.8
|
|
-
|
|
(0.0)
|
|
(0.3)
|
|
(6.3)
|
|
18.2
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
24.8
|
|
-
|
|
(0.0)
|
|
(0.3)
|
|
(6.3)
|
|
18.2
|
Total
consolidated
|
48.4
|
|
(0.6)
|
|
(1.9)
|
|
3.7
|
|
(1.8)
|
|
47.8
|
Total equity
method
|
14.2
|
|
(1.5)
|
|
(0.6)
|
|
(0.0)
|
|
(4.2)
|
|
7.9
|
Un-allocated
corporate
|
(0.1)
|
|
-
|
|
-
|
|
0.3
|
|
(0.2)
|
|
0.0
|
Total
|
$62.5
|
|
($2.1)
|
|
($2.5)
|
|
$4.0
|
|
($6.1)
|
|
$55.7
|
Note: Table 9A
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic Power
Corporation
|
Table 9B – Cash
Distributions from Projects (by Segment, in millions of U.S.
dollars)
|
Three months ended
March 31, 2015
|
Unaudited
|
|
Project Adjusted
EBITDA
|
Repayment of
long-term debt
|
Interest expense,
net
|
Capital
expenditures
|
Other, including
changes in working capital
|
Cash Distributions
from Projects
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
East
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$15.2
|
|
($1.0)
|
|
($1.9)
|
|
($1.2)
|
|
$5.2
|
|
$16.4
|
Equity
method
|
11.5
|
|
(1.5)
|
|
(0.7)
|
|
(0.3)
|
|
(0.4)
|
|
8.5
|
Total
|
26.7
|
|
(2.5)
|
|
(2.5)
|
|
(1.5)
|
|
4.7
|
|
24.9
|
West
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
6.6
|
|
-
|
|
-
|
|
-
|
|
(2.4)
|
|
4.2
|
Equity
method
|
3.4
|
|
-
|
|
-
|
|
(0.0)
|
|
0.7
|
|
4.0
|
Total
|
10.0
|
|
-
|
|
-
|
|
(0.0)
|
|
(1.7)
|
|
8.2
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
23.7
|
|
-
|
|
(0.0)
|
|
(0.1)
|
|
0.1
|
|
23.7
|
Equity
method
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
23.7
|
|
-
|
|
(0.0)
|
|
(0.1)
|
|
0.1
|
|
23.8
|
Total
consolidated
|
45.5
|
|
(1.0)
|
|
(1.9)
|
|
(1.3)
|
|
2.9
|
|
44.2
|
Total equity
method
|
14.9
|
|
(1.5)
|
|
(0.7)
|
|
(0.4)
|
|
0.2
|
|
12.6
|
Un-allocated
corporate
|
(1.8)
|
|
-
|
|
-
|
|
(0.0)
|
|
1.9
|
|
0.1
|
Total
|
$58.6
|
|
($2.5)
|
|
($2.5)
|
|
($1.7)
|
|
$5.0
|
|
$56.9
|
Note: Table 9B
presents Cash Distributions from Projects and Project Adjusted
EBITDA, which are not recognized measures under GAAP and do not
have any standardized meanings prescribed by GAAP; therefore, these
measures may not be comparable to similar measures presented by
other companies.
|
Atlantic Power
Corporation
|
Table 10 –
Adjusted Cash Flows from Operating Activities and Adjusted Free
Cash Flow (in millions of U.S. dollars)
|
Three months ended
March 31, 2016 and 2015
|
Unaudited
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2016
|
|
March 31,
2015
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
|
Project Adjusted
EBITDA
|
$62.5
|
$-
|
$62.5
|
|
$58.6
|
$13.3
|
$71.9
|
|
Adjustment for equity
method projects (1)
|
(9.9)
|
-
|
(9.9)
|
|
(9.9)
|
(1.4)
|
(11.3)
|
|
Corporate G&A
expense
|
(6.1)
|
-
|
(6.1)
|
|
(9.4)
|
-
|
(9.4)
|
|
Cash interest
payments
|
(8.9)
|
-
|
(8.9)
|
|
(11.4)
|
(1.5)
|
(12.9)
|
|
Cash taxes
|
(0.9)
|
-
|
(0.9)
|
|
(0.4)
|
-
|
(0.4)
|
|
Other, including
changes in working capital
|
(7.3)
|
-
|
(7.3)
|
|
(3.2)
|
0.4
|
(2.8)
|
|
Cash provided by
operating activities
|
$29.4
|
$-
|
$29.4
|
|
$24.3
|
$10.8
|
$35.1
|
|
Add back "Other,
including changes in working capital" from above
|
7.3
|
-
|
7.3
|
|
3.2
|
(0.4)
|
2.8
|
|
Severance
charges
|
0.1
|
-
|
0.1
|
|
2.9
|
-
|
2.9
|
|
Restructuring and
other charges
|
0.5
|
-
|
0.5
|
|
0.9
|
-
|
0.9
|
|
Adjusted Cash
Flows from Operating Activities
|
$37.3
|
$-
|
$37.3
|
|
$31.3
|
$10.4
|
$41.7
|
|
Term loan facility
repayments (2)
|
(25.3)
|
-
|
(25.3)
|
|
(21.3)
|
-
|
(21.3)
|
|
Project-level debt
repayments
|
(2.2)
|
-
|
(2.2)
|
|
(2.5)
|
-
|
(2.5)
|
Purchases of
property, plant and equipment
|
(0.7)
|
-
|
(0.7)
|
|
(1.3)
|
-
|
(1.3)
|
|
Reimbursement of
construction costs (3)
|
4.7
|
-
|
4.7
|
|
-
|
-
|
-
|
|
Distributions to
noncontrolling interests (4)
|
-
|
-
|
-
|
|
-
|
(2.7)
|
(2.7)
|
|
Dividends on
preferred shares of a subsidiary company
|
(2.0)
|
-
|
(2.0)
|
|
(2.3)
|
-
|
(2.3)
|
|
Adjusted Free Cash
Flow
|
$11.8
|
$-
|
$11.8
|
|
$3.9
|
$7.7
|
$11.6
|
|
Additional GAAP cash
flow measures:
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
9.2
|
-
|
9.2
|
|
9.8
|
(2.2)
|
7.6
|
|
Cash flows from
financing activities
|
(46.7)
|
-
|
(46.7)
|
|
(37.1)
|
(9.3)
|
(46.4)
|
|
(1)
Represents difference between Project Adjusted EBITDA and cash
distributions from equity method projects.
|
(2)
Includes 1% mandatory annual amortization and 50% excess cash flow
repayments by APLP.
|
(3) For a
customer-owned construction project at Morris received in the first
quarter of 2016. The remainder of the $6 million cash
reimbursement is included in Project Adjusted EBITDA.
|
(4)
Distributions to noncontrolling interests primarily include
distributions, if any, to the tax equity investors at Canadian
Hills and to the other 50% owner of Rockland. These projects were
sold in June 2015.
|
Note: This table
presents Project Adjusted EBITDA, Adjusted Cash Flows from
Operating Activities and Adjusted Free Cash Flow, which are not
recognized measures under GAAP and do not have any standardized
meanings prescribed by GAAP; therefore, these measures may not be
comparable to similar measures presented by other
companies.
|
Atlantic Power
Corporation
|
|
|
|
|
|
|
|
Table 11 – Project
Adjusted EBITDA by Project (for Selected
Projects)
|
|
|
|
(in millions of
U.S. dollars)
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
|
|
|
|
|
2016
|
2015
|
East
U.S.
|
Accounting
|
|
|
|
|
|
|
Cadillac
|
Consolidated
|
|
|
|
$2.1
|
$2.2
|
Curtis
Palmer
|
Consolidated
|
|
|
|
10.9
|
5.8
|
Morris
|
Consolidated
|
|
|
|
5.4
|
4.8
|
Piedmont
|
Consolidated
|
|
|
|
0.6
|
0.8
|
Kenilworth
|
Consolidated
|
|
|
|
0.5
|
1.6
|
Chambers
|
Equity
method
|
|
|
|
6.1
|
6.2
|
Orlando
|
Equity
method
|
|
|
|
5.1
|
5.1
|
Selkirk
|
Equity
method
|
|
|
|
(0.3)
|
0.2
|
Total
|
|
|
|
|
|
30.3
|
26.7
|
West
U.S.
|
|
|
|
|
|
|
|
Manchief
|
Consolidated
|
|
|
|
3.3
|
3.7
|
Naval
Station
|
Consolidated
|
|
|
|
0.3
|
1.4
|
North
Island
|
Consolidated
|
|
|
|
0.7
|
1.2
|
Naval Training
Center
|
Consolidated
|
|
|
|
0.6
|
0.7
|
Oxnard
|
Consolidated
|
|
|
|
(0.7)
|
(0.4)
|
Frederickson
|
Equity
method
|
|
|
|
3.0
|
3.1
|
Koma
Kulshan
|
Equity
method
|
|
|
|
0.3
|
0.3
|
Total
|
|
|
|
|
|
7.5
|
10.0
|
Canada
|
|
|
|
|
|
|
|
Calstock
|
Consolidated
|
|
|
|
2.8
|
2.7
|
Kapuskasing
|
Consolidated
|
|
|
|
3.8
|
4.0
|
Mamquam
|
Consolidated
|
|
|
|
2.7
|
1.6
|
Nipigon
|
Consolidated
|
|
|
|
5.8
|
5.9
|
North Bay
|
Consolidated
|
|
|
|
4.2
|
4.1
|
Williams
Lake
|
Consolidated
|
|
|
|
5.1
|
5.0
|
Other
(1)
|
Consolidated
|
|
|
|
0.5
|
0.4
|
Total
|
|
|
|
|
|
24.8
|
23.7
|
|
|
|
|
|
|
|
|
Totals
|
|
|
|
|
|
|
|
Consolidated
projects
|
|
|
|
|
|
48.4
|
45.5
|
Equity method
projects
|
|
|
|
|
|
14.2
|
14.9
|
Un-allocated
corporate
|
|
|
|
|
|
(0.1)
|
(1.8)
|
Total Project
Adjusted EBITDA
|
|
|
|
|
|
$62.5
|
$58.6
|
|
|
|
|
|
|
|
|
Reconciliation to
project income (loss)
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
$29.9
|
$32.9
|
Interest expense,
net
|
|
|
|
|
|
2.5
|
2.5
|
Change in the fair
value of derivative instruments
|
|
|
|
|
1.1
|
1.7
|
Impairment and other
expense
|
|
|
|
|
|
0.3
|
-
|
Project income
(loss)
|
|
|
|
|
|
$28.7
|
$21.5
|
(1) Tunis
and Moresby Lake
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: Table 11
presents Project Adjusted EBITDA, which is not a recognized measure
under GAAP and does not have any standardized meaning prescribed by
GAAP; therefore, this measure may not be comparable to a similar
measure presented by other companies. The Company has not
reconciled non-GAAP financial measures relating to individual
projects to the directly comparable GAAP measures due to the
difficulty in making the relevant adjustments on an individual
project basis.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/atlantic-power-corporation-releases-first-quarter-2016-results-300264105.html
SOURCE Atlantic Power Corporation