Algonquin Power & Utilities Corp. Announces 2012 Fourth Quarter and Year End Financial Results

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Mar 14, 2013, 08:11 ET

OAKVILLE, ON, March 14, 2013 /PRNewswire/ - Algonquin Power & Utilities Corp. ("APUC") (TSX: AQN), today announced financial results for the fourth quarter and year ended December 31, 2012.

Financial Highlights:

For the fourth quarter of 2012, revenue from continuing operations was $143.1 million as compared to $70.5 million in the fourth quarter of 2011. The increase in revenue over the same period in 2011 is primarily related to results from the acquisitions of the New Hampshire gas and electric utility assets, Midwest gas utility assets, and the acquisition of an interest in the U.S. wind projects, all of which occurred in the second half of 2012. For the year 2012, APUC generated revenue from continuing operations of $369.9 million as compared to $270.7 million in 2011.
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") was $33.4 million in the fourth quarter of 2012 as compared to $24.3 million in the fourth quarter of 2011. The increase in adjusted EBITDA over the comparable period is primarily related to increased revenues as a result of the acquisition of the New Hampshire gas and electric utility assets, Midwest gas utility assets, and the U.S. wind projects, and increased demand at the electric distribution utility in California (the "California Utility"). APUC generated adjusted EBITDA of $106.2 million in 2012 as compared to $103.7 million in 2011.
APUC reported adjusted net earnings of $5.4 million or $0.03 per share in the fourth quarter of 2012 as compared to adjusted net earnings of $3.6 million or $0.03 per share in the fourth quarter of 2011. For the year 2012, APUC reported adjusted net earnings of $20.8 million or $0.14 per share as compared to $38.3 million or $0.33 per share in 2011.

Growth Highlights:

On December 10, 2012, the acquisition of a 60% interest in the Minonk (200 MW) and Senate (150 MW) wind projects in the United States was completed by an APUC subsidiary. This is in addition to the completion of the acquisition of a 60% interest in the 50 MW Sandy Ridge wind project earlier in the year. Total consideration paid for the acquisition of the interest in the three wind projects was approximately U.S. $271.7 million.
On December 21, 2012, APUC completed the acquisition of the remaining 49.999% ownership in California Pacific Utility Ventures LLC, which owns 100% of the California Utility assets. APUC acquired the remaining 49.999% interest from Emera Inc. ("Emera") through the issuance of 8.2 million APUC common shares, 4.8 million of which were issued on December 27, 2012, and the remaining 3.4 million shares issued on February 14, 2013.
Subsequent to the end of the year, on January 1, 2013, an APUC subsidiary acquired the 109.5 MW contracted Shady Oaks wind powered generating station for total consideration of approximately US$148.9 million. The Shady Oaks wind power facility is located in Northern Illinois, approximately 80 km west of Chicago, Illinois and reached commercial operation in June 2012.
Additionally, on February 11, 2013, an APUC subsidiary entered into an agreement to assume the rights to purchase the assets of New England Gas Company from an affiliate of Southern Union Company. New England Gas Company is a natural gas distribution utility serving over 50,000 customers in Massachusetts. The acquisition is subject to certain approvals and conditions, including state and federal regulatory approval, and is expected to close in the second half of 2013. Total consideration for the utility asset purchase is approximately U.S. $74 million, subject to working capital and closing adjustments.

Corporate Highlights:

In 2012, pursuant to the Strategic Investment Agreement with Emera, APUC issued a total of 26.4 million shares for cash and share proceeds of $142.6 million as a result of the exercise of subscription receipts issued for certain previously announced transactions. Subsequent to the end of the year, APUC issued an additional 11.2 million shares to Emera pursuant to subscription agreements. As a result, Emera owns 46.1 million APUC common shares representing approximately 23% of the total outstanding common shares of the Company. On February 22, 2013, APUC announced that Emera agreed to subscribe to 3.96 million common shares of APUC at a price of $7.40 per share for total proceeds of approximately $29 million. The conversion of these subscription receipts will bring Emera's total investment in APUC to 24.5%.
On November 9, 2012, APUC issued 4.8 million cumulative rate reset preferred shares, Series A at a price of $25 per share for aggregate gross proceeds of $120 million. The shares yield 4.5% annually for the initial six year period.
On November 19, 2012, APUC entered into an agreement for a $30.0 million senior unsecured revolving credit facility with a Canadian chartered bank. The credit facility will be used for general corporate purposes and has a maturity date of November 19, 2015.

"We concluded 2012 having exceeded our expectations from a strategic growth perspective in both our regulated and non-regulated utilities businesses", commented Ian Robertson, Chief Executive Officer of APUC. "We have successfully integrated the newly acquired regulated and non-regulated utility assets in the United States and we further advanced our power development portfolio throughout the past year. Our priority for 2013 is to continue to build on the growth momentum we have experienced over the past few years. We are focused on new developments and acquisitions in our business, growing cash flow and further strengthening our stable base of earnings."

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 home page.

APUC will hold an earnings conference call at 10:00 a.m. eastern time on Friday, March 15, 2013, hosted by Chief Executive Officer, Ian Robertson and Chief Financial Officer, David Bronicheski.

Conference call details are as follows:
Date: Friday, March 15, 2013
Start Time: 10:00 a.m. eastern
Phone Number: Toll free within North America: 1-877-974-0445 or Local 416-644-3415.

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 4600256# from March 15, 2013 until March 29, 2013.

About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.0 billion portfolio of regulated and non-regulated utilities in North America. The company's regulated utility business is committed to provide water, electricity and natural gas utility services to over 465,000 customers through a nationwide portfolio of regulated generation, transmission and distribution utility systems. The company's non-regulated electric generation subsidiary owns or has interests in renewable energy and thermal energy facilities representing more than 1,100 MW of installed capacity. Algonquin Power & Utilities Corp. 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 symbols 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.