Atlantic Power Corporation Releases Fourth Quarter and Year End 2012 Results and Announces 2013 Guidance and Dividend Reduction
Company Release - 02/28/2013 18:27
BOSTON, Feb. 28, 2013 /PRNewswire/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today released its results for the three months and year ended December 31, 2012. The Company also provided initial guidance for 2013 and announced a lower dividend level to strengthen its ability to execute on growth and enhance long-term total shareholder return.
All amounts are in U.S. dollars unless otherwise indicated. Cash Available for Distribution, Payout Ratio, and Project Adjusted EBITDA 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" attached to this news release for an explanation and the GAAP reconciliation of "Cash Available for Distribution", "Payout Ratio" and "Project Adjusted EBITDA" as used in this news release.
2012 Highlights
Achieved project cash distributions of $275 million, exceeding the Company's guidance of $255 to $265 million
Increased cash flows from operating activities by $111 million to $167 million for the year ended December 31, 2012, compared to $56 million for the same period in 2011
Delivered a Payout Ratio of 100%, within the Company's guidance of 96% to 102%
Added 450 MW of net generating capacity
Paid off a $265 million construction loan with tax equity financing at Canadian Hills Wind
Placed Canadian Hills in commercial operation in December, within budget and on schedule
Acquired Ridgeline Energy, a Seattle-based wind and solar project developer, in December
Recent Developments
Announced in January 2013 an agreement to sell its Auburndale, Lake and Pasco projects for approximately $136 million
Expect Piedmont to achieve commercial operation in late March 2013
Increased average remaining power purchase agreement ("PPA") life by 58% to approximately 11.4 years from 7.2 years, reflecting asset sales and addition of Canadian Hills, Piedmont and Ridgeline in 2013
"We had strong financial results in 2012, with cash distributions from projects of $275 million exceeding our guidance range," said Barry Welch, President and CEO of Atlantic Power. "We also successfully managed two large construction projects, with the completion of our 300 MW Canadian Hills Wind project in December and the expected commercial operation of our 53 MW Piedmont biomass project in late March 2013. We also closed the acquisition of Ridgeline Energy at the end of last year, which added 150 MW of operating wind projects to our portfolio. In addition, Ridgeline provides us with demonstrated capabilities in both developing and acquiring renewable energy projects, which we expect will be an important area of growth for us."
"We will continue executing on our growth plans this year by investing approximately $140 to $150 million of net cash available to us by mid-year in one or more acquisitions that will make accretive contributions to our cash flows," continued Mr. Welch. "In addition, together with our Ridgeline team we are moving a number of solar and wind projects through the development pipeline toward commercial viability and should have more to discuss on this later in the year. In short, we continue to capitalize on our strong industry relationships, reputation and experienced team to drive growth initiatives that will meet our financial objectives and grow long-term shareholder value."
Cash Available for Distribution and Payout Ratio
For the year ended December 31, 2012, cash flows from operating activities increased by $111.1 million, to $167.1 million, compared to $55.9 million for the same period in 2011. For the year ended December 31, 2012, Cash Available for Distribution increased by $52.6 million to $131.6 million, compared to $79.0 million for the same period in 2011.These increases over the prior-year periods are primarily due to contributions from the 18 Partnership projects.
For the year ended December 31, 2012, the Payout Ratio associated with the dividend was 100% compared to 109% in the comparable prior-year period. The Payout Ratio for the year ended December 31, 2012 was within the Company's guidance of 96% to 102%. For further information, attached to this news release are the calculations of Cash Available for Distribution and Payout Ratio
As a result of this review, the Board, with management's recommendation, has unanimously approved a reduction in the annual dividend level to Cdn$0.40 per share, or Cdn$0.03333 per share on a monthly basis. The new dividend level will commence with the March 2013 dividend to shareholders of record on March 28, 2013. Shareholders of record as of that date will receive a dividend of Cdn$0.03333 per share on April 30, 2013. The February 2013 dividend of Cdn$0.09583, declared on February 15, 2013, will be paid on March 28, 2013 to shareholders of record on February 28, 2013.
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