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Algonquin Power &; Utilities Corp. Announces 2010 Second Quarter Financial Results

^{Published on 2010-08-12 15:45:47 - Market Wire}
 

 Financial Highlights: - For the second quarter of 2010, revenue was $42.7 million as compared to $46.5 million in the second quarter of 2009. The decrease in revenue over 2009 is primarily the result of lower average hydrology, lower waste disposal revenue at the energy-from-waste facility as a result of the unplanned outage and the expected change in operations at Windsor Locks to a forward reserve market operating model following the expiry of one of its power purchase agreements. For the first six months of 2010, APUC generated revenue of $88.6 million as compared to $98.7 million in the first six months of 2009. - Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") was $18.7 million in the second quarter of 2010 as compared to $20.0 million in the second quarter of 2009. The decrease in Adjusted EBITDA is primarily related to lower earnings from operations. APUC generated Adjusted EBITDA of $36.6 million for the first six months of 2010 as compared to $41.1 million for the first six months of 2009. - APUC reported a net loss in the second quarter of 2010 of $2.2 million or $0.02 per share as compared to net earnings of $15.3 million or $0.20 per share for the second quarter of 2009. For the first six months of 2010, APUC reported net earnings of $1.2 million or $0.01 per share as compared to $19.5 million or $0.25 per share for the first six months of 2009. - Adjusted net earnings are utilized to report the net earnings of APUC without the effects of gains or losses on foreign exchange, foreign exchange forward contracts, and interest rate swaps as these are primarily non-cash items that are not reflective of the performance of the underlying business of APUC. APUC reported adjusted net loss of $0.1 million or $0.00 per share in Q2 2010 as compared to adjusted net earnings of $3.8 million or $0.05 per share in Q2 2009. APUC reported adjusted net earnings of $2.9 million or $0.03 per share for the first six months of 2010 as compared to adjusted net earnings of $11.8 million or $0.15 per share for the first six months of 2009. Performance and Operational Highlights: - During the second quarter of 2010, APUC experienced revenue impacts from lower than average hydrology in most of the regions in which it operates hydroelectric facilities and the continuing overhaul related outage of its energy-from-waste plant. - APUC continued the pursuit of rate cases for seven of Liberty Water's utilities with settlement of three Texas rate cases and receipt of a preliminary order for one of its Arizona utilities. The rate settlements and the propositions contained in the preliminary rate order represent approximately 92% of the total US $2.4 million requested revenue requirement for these utilities. - The major overhaul and upgrade of the energy-from-waste facility was successfully completed and the facility returned to full production on all five units in July, 2010. As a result of the major capital upgrade which included new boiler tubes on all units, the facility is expected to operate above expectations for the remainder of the year, with anticipated waste processing levels of 475 tonnes per day. - APUC's Windsor Locks facility successfully made the transition to a new forward reserve market operating model following the expiration of one of its power purchase agreements. While the change in operating regime forecast lower operating revenues, due to higher dispatch levels and favourable power pricing in the spot market, second quarter revenues exceeded management's expectations. - APUC entered into agreements to provide development, construction, operation and supervision services related to the construction, commissioning and operation of the 26.4 megawatt Red Lily Phase 1 Wind Energy Facility, expected to be completed in early 2011. APUC is committed to provide $19.5 million of senior and subordinated debt to the project, which APUC has the option to convert to a 75% equity interest in the project.