OAKVILLE, ON, May 9, 2019 /CNW/ - Algonquin Power
& Utilities Corp. (TSX/NYSE: AQN) ("APUC" or the "Company")
today announced financial results for the first quarter ended
March 31, 2019. All amounts are
shown in United States dollars
("U.S. $" or "$"), unless otherwise noted.
"During the first quarter of 2019, we continued to advance our
major development projects, including our Customer Savings Plan
which involves the development of 600 megawatts of new wind power
generation to both reduce customers' monthly electric bill and
reduce carbon emissions in the mid-west," said Ian Robertson, Chief Executive Officer of APUC.
"We are also pleased that our Board of Directors has approved a 10%
increase in our dividend, a decision that is supported by another
year of successful execution of our strategic plan and growth of
our earnings and cash flows."
Q1 2019 Financial Highlights
- Revenue of $477.2 million
compared to $494.8 million in
2018.
- Adjusted EBITDA1 of $231.5
million compared to $279.6
million in 2018. Adjusting for the one-time income
acceleration of $55.9 million that
occurred in the first quarter of 2018 arising from the
implementation of U.S. Tax Reform, Adjusted EBITDA increased by
$7.8 million over the same period in
2018.
- Earnings of $0.17 per share
compared to $0.04 per share for the
same period in 2018.
- Adjusted Net Earnings1 per share of $0.19 compared to $0.32 in 2018. Adjusting for the one-time
impact of U.S. Tax Reform of $0.11
per share that occurred in the first quarter of 2018, Adjusted Net
Earnings per share decreased by $0.02
per share.
- Adjusted Funds from Operations1 of $173.5 million compared to $179.9 million in 2018.
Key Financial Information
All dollar
amounts in U.S. $ millions except per share
information
|
Q1
2019
|
Q1
2018
|
Variance
|
Revenue
|
477.2
|
494.8
|
-4%
|
Net earnings
attributable to shareholders
|
86.4
|
17.6
|
391%
|
Per
share
|
0.17
|
0.04
|
325%
|
Adjusted Net
Earnings1
|
93.8
|
141.0
|
-33%
|
Per
share
|
0.19
|
0.32
|
-41%
|
Adjusted
EBITDA1
|
231.5
|
279.6
|
-17%
|
Adjusted Funds
from Operations1
|
173.5
|
179.9
|
-4%
|
Dividend per
share
|
0.1282
|
0.1165
|
10%
|
1.
|
Please refer to
Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures
at the end of this document for further details.
|
APUC Business Highlights
- Increase in common share dividend –
Consistent with APUC's strategy of delivering total shareholder
return comprised of an attractive current dividend yield and
capital appreciation, on May 9, 2019,
APUC's Board of Directors approved a 10% dividend increase from a
total annual dividend of $0.5128 per
common share to a total annual dividend of $0.5640 per common share, to be paid quarterly at
a rate of $0.1410 per common share,
up from $0.1282 per common
share.
Liberty Power Group Highlights
- Uruguay Transmission Line Project – Subsequent to
quarter end, on May 7, 2019, AAGES
secured the winning bid for a High Voltage Transmission Line
Project in Uruguay (the "Uruguay
Project"). The Uruguay Project consists of a 500 kV
substation, a 500 kV power transmission line approximately 60 km in
length, and a 150 kV power transmission line approximately 20 km in
length.
- Inaugural issuance of Green Bonds
– On January 29,
2019, the Liberty Power Group issued C$300 million of senior unsecured debentures
bearing interest at 4.60% and with a maturity date of January 29, 2029. The debentures represent
Liberty Power Group's inaugural "green bond" offering.
Liberty Utilities Group Highlights
- Progress on Customer Savings Plan – On
May 9, 2019, the Arkansas Public
Service Commission issued its order allowing the commencement of
construction of the project. The project is expected to commence
construction upon receipt of the approval of the Certificate of
Convenience and Necessity in Missouri which is expected in the second
quarter of 2019.
- Acquisition of ownership interest in Wataynikaneyap Power
Transmission Project – On January 17, 2019, the Liberty Utilities Group
acquired a 9.8% ownership interest in the electricity transmission
project located in Northwestern
Ontario that is expected to connect 17 remote First Nation
communities to the Ontario
provincial electricity grid through the construction of
approximately 1,800 km of transmission lines.
APUC's supplemental information is available on the web site at
www.AlgonquinPowerandUtilities.com and under its issuer profile on
SEDAR at www.sedar.com.
Earnings Conference Call
APUC will hold an earnings conference call at 10:00 a.m. eastern time on Friday, May 10, 2019,
hosted by Chief Executive Officer, Ian
Robertson and Chief Financial Officer, David Bronicheski.
Date:
|
Friday, May 10,
2019
|
Time:
|
10:00 a.m.
ET
|
Conference Call
Access:
|
Toll Free
Canada/US:
|
1-800-319-4610
|
|
Toronto
local:
|
416-915-3239
|
|
Please ask to join
the Algonquin Power & Utilities Corp. conference
call
|
Presentation
Access:
|
http://services.choruscall.ca/links/algonquinpower20190510.html
Presentation also
available at: www.algonquinpowerandutilities.com
|
Call
Replay:
|
Toll Free
Canada/US:
|
1-855-669-9658
|
(available until
May 25)
|
Vancouver
local:
|
1-604-674-8052
|
|
Access
code:
|
3134
|
|
|
|
About Algonquin Power & Utilities Corp.
APUC is a diversified generation, transmission and distribution
utility with approximately $9.7
billion of total assets. Through its two business groups,
APUC provides rate-regulated natural gas, water, and electricity
generation, transmission, and distribution utility services to
approximately 770,000 connections in the
United States, and is committed to being a global leader in
the generation of clean energy through ownership of or investments
in long‐term contracted wind, solar and hydroelectric generating
facilities representing over 2 GW of installed capacity. APUC
delivers continuing growth through an expanding pipeline of
renewable energy, electric transmission, and water infrastructure
development projects with a global focus, organic growth within its
rate-regulated generation, distribution and transmission
businesses, and the pursuit of accretive acquisitions. APUC's
common shares, Series A preferred shares, and Series D preferred
shares are listed on the Toronto Stock Exchange under the symbols
AQN, AQN.PR.A, and AQN.PR.D. APUC's common shares and Series 2018-A
subordinated notes are also listed on the New York Stock Exchange
under the symbols AQN and AQNA.
Visit APUC at www.algonquinpowerandutilities.com and follow
us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information and Non-GAAP
Financial Measures
Certain statements included in this news release constitute
''forward-looking information'' within the meaning of applicable
securities laws in each of the provinces of Canada and the respective policies,
regulations and rules under such laws and ''forward-looking
statements'' within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, ''forward-looking
statements"). The words "will", "expects", "intends" and similar
expressions are often intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Specific forward-looking statements in
this new release include, but are not limited to: expectations with
respect to the timing and amounts of APUC's growth plans, earnings,
cash flow and dividend amounts; and expectations and plans with
respect to current and planned capital projects. 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 APUC's most recent annual and interim Management Discussion
and Analysis and 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 to reflect new information, subsequent
or otherwise.
(1) Non-GAAP Financial Measures and Use of Non-GAAP
Financial Measures
The terms "Adjusted Net Earnings", "Adjusted EBITDA", and
"Adjusted Funds from Operations" are used in this press release.
The terms "Adjusted Net Earnings", "Adjusted EBITDA", and "Adjusted
Funds from Operations" are not recognized measures under GAAP.
There is no standardized measure of "Adjusted Net Earnings",
Adjusted EBITDA", and "Adjusted Funds from Operations" and
consequently APUC's method of calculating these measures may differ
from methods used by other companies and therefore may not be
comparable to similar measures presented by other companies. A
calculation, analysis and reconciliation to the nearest U.S. GAAP
measure of "Adjusted Net Earnings", "Adjusted EBITDA", and
"Adjusted Funds from Operations" can be found in APUC's
Management's Discussion & Analysis for the quarter ended
March 31, 2019.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure used by many investors to
compare companies on the basis of ability to generate cash from
operations. APUC uses these calculations to monitor the amount of
cash generated by APUC as compared to the amount of dividends paid
by APUC. APUC uses Adjusted EBITDA to assess the operating
performance of APUC without the effects of (as applicable):
depreciation and amortization expense, income tax expense or
recoveries, acquisition costs, litigation expenses, interest
expense, gain or loss on derivative financial instruments, write
down of intangibles and property, plant and equipment, earnings
attributable to non-controlling interests, non-service pension and
post-employment costs, cost related to tax equity
financing, gain or loss on foreign exchange, earnings or loss
from discontinued operations, changes in value of investments
carried at fair value, and other typically non-recurring items.
APUC adjusts for these factors as they may be non-cash, unusual in
nature and are not factors used by management for evaluating the
operating performance of the Company. APUC believes that
presentation of this measure will enhance an investor's
understanding of APUC's operating performance. Adjusted EBITDA is
not intended to be representative of cash provided by operating
activities or results of operations determined in accordance with
U.S. GAAP, and can be impacted positively or negatively by these
items.
Adjusted Net Earnings
Adjusted Net Earnings is a non-GAAP measure used by many
investors to compare net earnings from operations without the
effects of certain volatile primarily non-cash items that generally
have no current economic impact or items such as acquisition
expenses or litigation expenses that are viewed as not directly
related to a company's operating performance. APUC uses Adjusted
Net Earnings to assess its performance without the effects of (as
applicable): gains or losses on foreign exchange, foreign exchange
forward contracts, interest rate swaps, acquisition costs, one-time
costs of arranging tax equity financing, litigation expenses and
write down of intangibles and property, plant and equipment,
earnings or loss from discontinued operations, unrealized
mark-to-market revaluation impacts, changes in value of investments
carried at fair value, and other typically non-recurring items as
these are not reflective of the performance of the underlying
business of APUC. APUC believes that analysis and presentation
of net earnings or loss on this basis will enhance an investor's
understanding of the operating performance of its businesses.
Adjusted Net Earnings is not intended to be representative of net
earnings or loss determined in accordance with U.S. GAAP, and can
be impacted positively or negatively by these items.
Adjusted Funds from Operations
Adjusted Funds from Operations is a non-GAAP measure used by
investors to compare cash flows from operating activities without
the effects of certain volatile items that generally have no
current economic impact or items such as acquisition expenses that
are viewed as not directly related to a company's operating
performance. APUC uses Adjusted Funds from Operations to assess its
performance without the effects of (as applicable): changes in
working capital balances, acquisition expenses, litigation
expenses, cash provided by or used in discontinued operations and
other typically non-recurring items affecting cash from operations
as these are not reflective of the long-term performance of the
underlying businesses of APUC. APUC believes that analysis and
presentation of funds from operations on this basis will enhance an
investor's understanding of the operating performance of its
businesses. Adjusted Funds from Operations is not intended to be
representative of cash flows from operating activities as
determined in accordance with U.S. GAAP, and can be impacted
positively or negatively by these items.
Reconciliation of Adjusted EBITDA to Net Earnings
The following table is derived from and should be read in
conjunction with the consolidated statement of operations. This
supplementary disclosure is intended to more fully explain
disclosures related to Adjusted EBITDA and provides additional
information related to the operating performance of APUC.
Investors are cautioned that this measure should not be construed
as an alternative to U.S. GAAP consolidated net earnings.
(all dollar
amounts in U.S. $ millions)
|
Three Months
Ended
March
31
|
2019
|
2018
|
Net earnings
attributable to shareholders
|
$86.4
|
$17.6
|
Add
(deduct):
|
|
|
Net earnings
attributable to non-controlling interest, exclusive of
HLBV
|
7.6
|
0.7
|
Income tax
expense
|
14.8
|
33.1
|
Interest expense on
long-term debt and others
|
42.6
|
35.5
|
Other losses
(gains)
|
0.6
|
(1.2)
|
Acquisition-related
costs
|
1.9
|
7.6
|
Pension and
post-employment non-service costs
|
1.3
|
0.4
|
Change in value of
investment in Atlantica carried at fair value
|
5.8
|
117.0
|
Loss on derivative
financial instruments
|
0.2
|
0.1
|
Realized loss on
energy derivative contracts
|
(0.2)
|
—
|
Loss (gain) on foreign
exchange
|
(0.5)
|
0.2
|
Depreciation and
amortization
|
71.0
|
68.6
|
Adjusted
EBITDA
|
$231.5
|
$279.6
|
Reconciliation of Adjusted Net Earnings to Net
Earnings
The following table is derived from and should be read in
conjunction with the consolidated statement of operations. This
supplementary disclosure is intended to more fully explain
disclosures related to Adjusted Net Earnings and provides
additional information related to the operating performance of
APUC. Investors are cautioned that this measure should not be
construed as an alternative to consolidated net earnings in
accordance with U.S. GAAP.
The following table shows the reconciliation of net earnings to
Adjusted Net Earnings exclusive of these items:
(all dollar
amounts in U.S. $ millions, except per share data)
|
Three Months
Ended
March
31
|
2019
|
2018
|
Net earnings
attributable to shareholders
|
$86.4
|
$17.6
|
Add
(deduct):
|
|
|
Loss on derivative
financial instruments
|
0.2
|
0.1
|
Realized loss on
energy derivative contracts
|
(0.2)
|
—
|
Loss (gain) on
long-lived assets, net
|
0.2
|
(1.2)
|
Loss (gain) on foreign
exchange
|
(0.5)
|
0.2
|
Acquisition-related
costs
|
1.9
|
7.6
|
Change in value of
investment in Atlantica carried at fair value
|
5.8
|
117.0
|
Adjustment for taxes
related to above
|
—
|
(0.3)
|
Adjusted Net
Earnings
|
$93.8
|
$141.0
|
Adjusted Net
Earnings per share1
|
$0.19
|
$0.32
|
1.
|
Per share amount
calculated after preferred share dividends and excluding
subscription receipts issued for projects or acquisitions not
reflected in earnings.
|
Reconciliation of Adjusted Funds from Operations to Cash
Flows from Operating Activities
The following table is derived from and should be read in
conjunction with the consolidated statement of operations and
consolidated statement of cash flows. This supplementary disclosure
is intended to more fully explain disclosures related to Adjusted
Funds from Operations and provides additional information related
to the operating performance of APUC. Investors are cautioned
that this measure should not be construed as an alternative to
funds from operations in accordance with U.S. GAAP.
The following table shows the reconciliation of funds from
operations to Adjusted Funds from Operations exclusive of these
items:
(all dollar
amounts in U.S. $ millions)
|
Three Months
Ended
March
31
|
2019
|
2018
|
Cash flows from
operating activities
|
$122.1
|
$97.0
|
Add
(deduct):
|
|
|
Changes in non-cash
operating items
|
45.9
|
63.0
|
Production based cash
contributions from non-controlling interests
|
3.6
|
11.3
|
Acquisition-related
costs
|
1.9
|
7.6
|
Reimbursement of
operating expenses incurred on joint venture
|
—
|
1.0
|
Adjusted Funds
from Operations
|
$173.5
|
$179.9
|
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SOURCE Algonquin Power & Utilities Corp.