Boralex announces annual results

MONTREAL, Feb. 19, 2014 /PRNewswire/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) announces its financial results for the fourth quarter and fiscal year ended December 31, 2013.

FINANCIAL HIGHLIGHTS (on a proportionate consolidation basis)(1)

           
(in millions of dollars, except per share amounts and EBITDA margin) Three-month periods
ended December 31,
  Years ended
December 31,
  2013 2012   2013 2012
Revenues from energy sales 51.9 52.1   171.4 181.4
EBITDA 31.4 29.9   101.8 98.2
EBITDA margin (%) 60.5 57.4   59.4 54.1
Net earnings (loss)(2) 0.5 1.2   (4.2) (5.1)
  Per share (basic and diluted)($)(2) 0.01 0.03   (0.11) (0.14)
Cash flows from operations 16.1 13.5   51.2 47.7
  Per share (basic)($) 0.43 0.36   1.36 1.26
(1) See "Reconciliations between IFRS and Proportionate Consolidation" sections in the financial statements accompanying this press release
(2) Attributable to shareholders of Boralex

For the fourth quarter, revenues from energy sales calculated on a proportionate consolidation basis(1) totalled $51.9 million, compared with $52.1 million for the same period last year. For the fiscal year, those revenues were down 5.5% to $171.4 million in 2013 from $181.4 million in 2012. Excluding the impact of the November 2012 shutdown of the Kingsey Falls power station, those revenues for the fourth quarter and fiscal year were up 10% and 13%, respectively, from the same periods a year earlier.

Fourth-quarter EBITDA rose 5% to $31.4 million in 2013 from $29.9 million year over year. For the year ended December 31, 2013, EBITDA climbed 3.7% to $101.8 million compared with 2012. Reflecting this growth, fourth-quarter EBITDA margin increased to 60.5% in 2013 from 57.4% in 2012. For the fiscal year, EBIDTA margin widened to 59.4% in 2013 from 54.1% in 2012. Excluding the impact of the shutdown of the Kingsey Falls power station, EBITDA for the fourth quarter and fiscal year was up 9% and 15%, respectively, from the same periods a year earlier.

These favourable results were primarily driven by the June 2012 acquisition of St-Patrick wind farm in France, and the commissioning in December 2013 of phase I of the Seigneurie de Beaupré Wind Farms in Canada. Those facilities offset the impact of the Kingsey Falls closure, while favourably positioning Boralex for growth. The Corporation ended the fiscal year with $128 million in cash, which allows it to pursue its growth strategy.

OPERATING HIGHLIGHTS
Boralex expanded its installed capacity by 176 MW or nearly 37% to 652 MW in 2013 from 476 MW in 2012 through the addition of new assets in Canada and France:

  • The December commissioning (on time and on budget) of phase I of the Seigneurie de Beaupré Wind Farms totalling 272 MW (net share of 136 MW for Boralex), the largest project ever completed by the Corporation; and
  • The commissioning of Vron (8 MW) and La Vallée (32 MW) wind farms in France in September and December, respectively.

Regarding the year's achievements, "in 2013, we achieved further growth and improved our profit margin as a result of higher weightings in the wind and hydroelectric power segments," stated Mr. Lemaire. "In addition, by expanding our geographical diversification with major investments in Canada, we are acquiring new skills with different wind power technologies while helping to stabilize our future results," added Mr. Lemaire.

"Given our cash situation, the strength and quality of cash flows from operations, and particularly, the ability of our team to find, operate and finance projects in both France and Canada, I can only be enthusiastic about the future," concluded Mr. Lemaire.

OUTLOOK
Numerous projects representing approximately 236 MW (net share of 202 MW for Boralex) are slated for commissioning in 2014 and 2015, including:

  • Jamie Creek hydroelectric power station (22 MW) in British Columbia (2014);
  • Phase II of the of the Seigneurie de Beaupré Wind Farms in Québec (68 MW) (34 MW net share for Boralex) (2014);
  • Québec wind farm Témiscouata I (25 MW) in partnership with Témiscouata RCM (2014);
  • French wind farms Fortel-Bonnières and St-François (46 MW) (2014 and 2015);
  • Québec wind farm Côte-de-Beaupré (25 MW) in partnership with La Côte-de-Beaupré RCM (2015); and
  • Québec wind farm Témiscouata II (50 MW) for which Boralex recently obtained the ministerial order authorizing construction to begin (2015).

Boralex is pursuing further growth opportunities in projects under various stages of development in France and Canada.

Boralex intends to actively participate in the request for proposals for the purchase of a block of wind power recently tendered by Hydro-Québec for 450 MW in installed capacity, while seeking to position itself favourably to seize on further growth opportunities including potential acquisitions, RFPs from other Canadian jurisdictions or fixed-rate power purchase programs in France or Canada.

About Boralex
Boralex is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. Currently, the Corporation operates an asset base with an installed capacity of more than 650 MW in Canada, France and the Northeastern United States. Boralex is also committed under power development projects, both independently and with Canadian and European partners, to add approximately 250 MW of power that will be put in service by the end of 2015. With more than 200 employees, Boralex is known for its diversified expertise and in-depth experience in four power generation types-wind, hydroelectric, thermal and solar. Boralex's shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB, respectively. More information is available at www.boralex.com or www.sedar.com.

Caution regarding forward-looking statements
Some of the statements contained in this press release, including those regarding future results and performance, are forward-looking statements based on current expectations, within the meaning of securities legislation. Boralex would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results or the measures it adopts could differ materially from those indicated by or underlying these statements, or could have an impact on the degree of realization of a particular projection. The main factors that could lead to a material difference between the Corporation's actual results and the projections or expectations set forth in the forward-looking statements include, but are not limited to, the general impact of economic conditions, raw material price increases and availability, currency fluctuations, volatility in the selling price of electricity, the Corporation's financing capacity, negative changes in general market conditions and regulations affecting the industry, as well as other factors discussed in the Corporation's filings with the various securities commissions.

There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward-looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements. Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes.

Non-IFRS Measures
The summarized financial statements included in this press release also contain certain non-IFRS financial measures. In order to assess the performance of its assets and reporting segments, Boralex uses EBITDA and cash flows from operations, and EBITDA and cash flows from operations under proportionate consolidation, as performance measures. Management believes that these measures are widely accepted financial indicators used by investors to assess the operational performance of a company and its ability to generate cash through operations. These non-IFRS measures are derived primarily from the unaudited condensed consolidated financial statements accompanying this press release, but do not have a standardized meaning under IFRS; accordingly, they may not be comparable to similarly named measures used by other companies.

The summarized financial statement included in this press release also contain a section entitled, "Reconciliations between IFRS and Proportionate Consolidation," in which the results of Joint Ventures 50% owned by Boralex are treated as if they were proportionately consolidated and not as if they were accounted for using the equity method as required by IFRS. Since the information that Boralex uses to carry out internal analyses and make strategic and operating decisions is collected on a proportionate consolidation basis, management has considered it relevant to include the "Proportionate Consolidation" section to make it easier for investors to understand the concrete impacts of decisions made by the Corporation. Accordingly, tables reconciling IFRS data with data presented on a proportionate consolidation basis are included in the financial statements accompanying the press release.

 

Consolidated Financial Statements Unaudited
For the three-month period and year ended December 31, 2013

I - IFRS


Consolidated Statements of Financial Position

  As at
December 31,
  As at
December 31,
(in thousands of Canadian dollars) (unaudited) 2013   2012
ASSETS      
Cash and cash equivalents 124,942   107,138
Restricted cash 19,366   5,063
Trade and other receivables 41,625   45,589
Inventories 4,502   4,404
Available-for-sale financial asset   3,009
Prepaid expenses 2,945   2,137
CURRENT ASSETS 193,380   167,340
       
Property, plant and equipment 799,213   689,024
Other intangible assets 257,058   253,115
Goodwill 49,890   48,663
Interest in Joint Ventures 90,880   58,994
Other non-current financial assets 289  
Other non-current assets 32,017   12,735
NON-CURRENT ASSETS 1,229,347   1,062,531
TOTAL ASSETS 1,422,727   1,229,871
LIABILITIES      
Trade and other payables 57,992   46,945
Current portion of debt 84,034   98,570
Current income tax liability 1,516   1,741
Other current financial liabilities 15,243   25,508
CURRENT LIABILITIES 158,785   172,764
       
Non-current debt 578,914   423,616
Convertible debentures 229,578   226,299
Deferred income tax liability 37,493   29,514
Decommissioning liability 7,198   5,765
Other non-current financial liabilities 19,704   24,698
Other non-current liabilities 4,921   4,846
NON-CURRENT LIABILITIES 877,808   714,738
TOTAL LIABILITIES 1,036,593   887,502
EQUITY      
Equity attributable to shareholders 356,448   319,868
Non-controlling shareholders 29,686   22,501
TOTAL EQUITY 386,134   342,369
TOTAL LIABILITIES AND EQUITY 1,422,727   1,229,871


Consolidated Statements of Earnings (Loss)

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except per share amounts) (unaudited) 2013   2012   2013   2012
REVENUES              
Revenues from energy sales 49,496   52,063   169,023   181,440
Other income 331   2,401   3,009   2,853
  49,827   54,464   172,032   184,293
               
COSTS AND OTHER EXPENSES              
Operating expenses 15,952   18,868   54,357   66,330
Administration 3,263   4,347   13,214   14,528
Development 1,181   1,353   4,145   5,129
Amortization 13,987   15,021   53,888   58,030
Other losses (gains)     (232)   971
Impairment of property, plant and equipment and intangible assets     266   823
  34,383   39,589   125,638   145,811
               
OPERATING INCOME 15,444   14,875   46,394   38,482
               
Financing costs 13,061   12,640   50,693   49,279
Foreign exchange loss (gain) (530)   (80)   (788)   26
Net loss (gain) on financial instruments (69)   (103)   (742)   396
Share in earnings (loss) of the Joint Ventures (329)   (13)   (2,116)   51
Other 63     63  
               
EARNINGS (LOSS) BEFORE INCOME TAXES 2,590   2,405   (4,948)   (11,168)
               
Income tax expense (recovery) 1,624   1,229   537   (2,183)
               
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS 966   1,176   (5,485)   (8,985)
               
Net earnings from discontinued operations 74   696   1,774   3,721
NET EARNINGS (LOSS) 1,040   1,872   (3,711)   (5,264)
               
               
NET EARNINGS (LOSS) ATTRIBUTABLE TO:              
  Shareholders of Boralex 529   1,238   (3,838)   (5,115)
  Non-controlling shareholders 511   634   127   (149)
NET EARNINGS (LOSS) 1,040   1,872   (3,711)   (5,264)
               
NET EARNINGS (LOSS) ATTRIBUTABLE
TO SHAREHOLDERS OF BORALEX
             
  Continuing operations 455   542   (5,612)   (8,836)
  Discontinued operations 74   696   1,774   3,721
  529   1,238   (3,838)   (5,115)
               
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED)
ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX
             
  Continuing operations $0.01   $0.01   ($0.15)   ($0.24)
  Discontinued operations   $0.02   $0.05   $0.10
  $0.01   $0.03   ($0.10)   ($0.14)


Consolidated Statements of Comprehensive Income (Loss)

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
NET EARNINGS (LOSS) 1,040   1,872   (3,711)   (5,264)
         
Other comprehensive income (loss) to be subsequently reclassified to net earnings (loss) when certain conditions are met        
Translation adjustments:        
  Unrealized foreign exchange gain (loss) on translation of financial statements of self-sustaining foreign operations 8,116   4,577   18,026   (1,352)
Cash flow hedges:        
  Change in fair value of financial instruments (99)   (3,471)   7,917   (16,931)
  Hedging items realized and recognized in net earnings (loss) 2,541   2,906   8,361   14,526
  Taxes (732)   269   (4,819)   1,109
Cash flow hedges - Joint Ventures:        
  Change in fair value of financial instruments 2,152   1,807   18,655   (4,088)
  Taxes (473)   (481)   (4,855)   1,087
Available-for-sale financial asset:        
  Change in fair value of an available-for-sale financial asset   221   858   (48)
  Items realized and recognized in net earnings (loss)     (149)   968
Total other comprehensive income (loss) 11,505   5,828   43,994   (4,729)
COMPREHENSIVE INCOME (LOSS) 12,545   7,700   40,283   (9,993)
         
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:        
  Shareholders of Boralex 10,361   6,502   35,665   (9,131)
  Non-controlling shareholders 2,184   1,198   4,618   (862)
COMPREHENSIVE INCOME (LOSS) 12,545   7,700   40,283   (9,993)
         
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX        
  Continuing operations 10,287   5,806   33,891   (12,852)
  Discontinued operations 74   696   1,774   3,721
  10,361   6,502   35,665   (9,131)


Consolidated Statements of Changes in Equity

      2013
  Equity attributable to shareholders    
(in thousands of Canadian dollars) (unaudited) Capital
stock
  Equity
component of
convertible
debentures
  Contributed
surplus
  Retained
earnings
  Other
comprehensive
income (loss)
  Total   Non-
controlling
shareholders
  Total
equity
BALANCE AS AT JANUARY 1, 2013 222,870   14,379   6,945   144,492   (68,818)   319,868   22,501   342,369
                 
Net earnings (loss)       (3,838)     (3,838)   127   (3,711)
Other comprehensive income         39,503   39,503   4,491   43,994
COMPREHENSIVE INCOME (LOSS)       (3,838)   39,503   35,665   4,618   40,283
                 
Conversion of convertible debentures 94           94     94
Exercise of options 115           115     115
Stock option expense     785       785     785
Excess of proceeds on repurchase by non-controlling shareholders       (79)     (79)   (26)   (105)
Contribution of non-controlling shareholders             2,593   2,593
BALANCE AS AT DECEMBER 31, 2013 223,079   14,379   7,730   140,575   (29,315 ) 356,448   29,686   386,134

                             
      2012
  Equity attributable to shareholders    
(in thousands of Canadian dollars) (unaudited) Capital
stock
  Equity
component of
convertible
debentures
  Contributed
surplus
  Retained
earnings
  Other
comprehensive
income (loss)
  Total   Non-
controlling
shareholders
  Total
equity
BALANCE AS AT JANUARY 1, 2012 222,758   14,379   6,106   144,501   (65,980)   321,764   7,114   328,878
                 
Net loss       (5,115)     (5,115)   (149)   (5,264)
Other comprehensive loss         (4,016)   (4,016)   (713)   (4,729)
COMPREHENSIVE LOSS       (5,115)   (4,016)   (9,131)   (862)   (9,993)
                 
Conversion of convertible debentures 117           117     117
Share repurchases (5)       (2)     (7)     (7)
Stock option expense     839       839     839
Excess of proceeds from partial sale of a subsidiary       5,108   1,178   6,286   (6,286)  
Contribution of non-controlling shareholders             22,535   22,535
BALANCE AS AT DECEMBER 31, 2012 222,870   14,379   6,945   144,492   (68,818)   319,868   22,501   342,369


Consolidated Statements of Cash Flows

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
Net earnings (loss) 1,040   1,872   (3,711)   (5,264)
Less: Net earnings from discontinued operations 74   696   1,774   3,721
Net earnings (loss) from continuing operations 966   1,176   (5,485)   (8,985)
Financing costs 13,061   12,640   50,693   49,279
Interest paid (14,280)   (14,180)   (48,905)   (47,271)
Income tax expense (recovery) 1,624   1,229   537   (2,183)
Income taxes paid (647)   (2,694)   (3,372)   (5,334)
Non-cash items in earnings (loss):        
Net loss (gain) on financial instruments (69)   (103)   (742)   396
Share in results of Joint Ventures 329   13   2,116   (51)
Amortization 13,987   15,021   53,888   58,030
Impairment of property, plant and equipment and intangible assets     266   823
Other losses (gains)     (232)   971
Other 351   393   2,152   2,046
  15,322   13,495   50,916   47,721
Change in non-cash items related to operating activities (12,610)   (15,207)   8,350   (325)
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES 2,712   (1,712)   59,266   47,396
         
Business acquisitions   (24,801)     (63,881)
Additions to property, plant and equipment (28,395)   (4,787)   (107,479)   (10,320)
Additions to other intangible assets   (402)     (2,550)
Change in restricted cash (9,529)   (4,856)   (18,890)   13,225
Increase in interest in Joint Ventures (2,781)     (8,318)   (17,735)
Change in reserve funds 23     (13,956)  
Development projects (2,177)   (178)   (9,666)   (3,422)
Proceeds from sale of assets 15     389   8,763
Other (247)   723   (463)   833
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (43,091)   (34,301)   (158,383)   (75,087)
         
Net increase in non-current debt 29,439     209,739  
Repayments on non-current debt (4,097)   (3,747)   (101,471)   (27,713)
Contribution of non-controlling shareholders 1,856   4,307   2,593   22,513
Other 66     5   (2)
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES 27,264   560   110,866   (5,202)
Cash from discontinued operations 84   1,041   2,054   (3,642)
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS 1,906   1,055   4,001   (1,030)
NET CHANGE IN CASH AND CASH EQUIVALENTS (11,125)   (33,357)   17,804   (37,565)
         
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 136,067   140,495   107,138   144,703
CASH AND CASH EQUIVALENTS - END OF YEAR 124,942   107,138   124,942   107,138

Information by Operating Segment

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except MWh) (unaudited) 2013   2012   2013   2012
         
Power production (MWh)        
Wind power stations 227,195   210,838   682,136   632,422
Hydroelectric power stations 142,912   164,072   621,094   572,513
Thermal power stations 31,448   66,051   143,369   310,170
Solar power station 980   991   5,945   6,316
  402,535   441,952   1,452,544   1,521,421
         
Revenues from energy sales        
Wind power stations 29,305   25,124   85,109   74,654
Hydroelectric power stations 12,746   13,860   53,756   47,748
Thermal power stations 6,976   12,654   27,446   56,355
Solar power station 469   425   2,712   2,683
  49,496   52,063   169,023   181,440
         
EBITDA        
Wind power stations 24,279   21,327   66,594   60,935
Hydroelectric power stations 9,002   9,541   40,413   36,752
Thermal power stations 26   2,601   3,010   14,558
Solar power station 438   324   2,379   2,312
Corporate and eliminations (4,706)   (3,910)   (14,259)   (16,200)
  29,039   29,883   98,137   98,357

Information by Geographic Segment

  Three-month periods
ended December 31
Years ended
December 31
(in thousands of Canadian dollars, except MWh) (unaudited) 2013 2012 2013 2012
         
Power production (MWh)        
Canada 147,212   181,870   571,062   729,443
United States 86,871   100,441   387,942   343,294
France 168,452   159,641   493,540   448,684
  402,535   441,952   1,452,544   1,521,421
         
Revenues from energy sales        
Canada 17,317   21,888   63,568   89,623
United States 7,295   7,960   31,601   26,375
France 24,884   22,215   73,854   65,442
  49,496   52,063   169,023   181,440
         
EBITDA        
Canada 9,130   10,275   33,554   40,783
United States 5,149   5,546   23,864   21,869
France 14,760   14,062   40,719   35,705
  29,039   29,883   98,137   98,357



II - Proportionate Consolidation


Consolidated Statements of Financial Position

  As at
December 31,
  As at
December 31,
(in thousands of Canadian dollars) (unaudited) 2013   2012
ASSETS      
Cash and cash equivalents 127,541   107,138
Restricted cash 60,126   11,650
Trade and other receivables 72,758   48,930
Inventories 4,502   4,404
Other current financial assets   14
Available-for-sale financial asset   3,009
Prepaid expenses 2,945   2,137
CURRENT ASSETS 267,872   177,282
       
Property, plant and equipment 1,179,653   812,830
Other intangible assets 257,058   253,115
Goodwill 49,890   48,663
Other non-current financial assets 1,262  
Other non-current assets 35,705   31,274
NON-CURRENT ASSETS 1,523,568   1,145,882
TOTAL ASSETS 1,791,440   1,323,164
LIABILITIES      
Trade and other payables 81,607   50,826
Current portion of debt 122,509   98,570
Current income tax liability 1,516   1,741
Other current financial liabilities 15,243   29,342
CURRENT LIABILITIES 220,875   180,479
       
Non-current debt 855,484   495,090
Convertible debentures 229,578   226,299
Deferred income tax liability 37,493   29,513
Decommissioning liability 8,160   6,099
Other non-current financial liabilities 19,704   38,469
Other non-current liabilities 34,366   4,846
NON-CURRENT LIABILITIES 1,184,785   800,316
TOTAL LIABILITIES 1,405,660   980,795
EQUITY      
Equity attributable to shareholders 356,094   319,868
Non-controlling shareholders 29,686   22,501
TOTAL EQUITY 385,780   342,369
TOTAL LIABILITIES AND EQUITY 1,791,440   1,323,164


Consolidated Statements of Earnings (Loss)

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except per share amounts) (unaudited) 2013   2012   2013   2012
REVENUES        
Revenues from energy sales 51,867   52,063   171,395   181,440
Other income 342   2,401   2,726   2,853
  52,209   54,464   174,121   184,293
         
COSTS AND OTHER EXPENSES        
Operating expenses 16,294   18,868   54,699   66,330
Administration 3,295   4,364   13,381   14,591
Development 1,181   1,355   4,142   5,134
Amortization 15,595   15,021   55,496   58,030
Other losses (gains)     (232)   971
Impairment of property, plant and equipment and intangible assets     266   823
  36,365   39,608   127,752   145,879
         
OPERATING INCOME 15,844   14,856   46,369   38,414
         
Financing costs 15,082   12,636   52,861   49,269
Foreign exchange loss (gain) (521)   (80)   (700)   27
Net loss (gain) on financial instruments (1,309)   (105)   (553)   286
Other 63     63  
         
EARNINGS (LOSS) BEFORE INCOME TAXES 2,529   2,405   (5,302)   (11,168)
         
Income tax expense (recovery) 1,624   1,229   537   (2,183)
         
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS 905   1,176   (5,839)   (8,985
         
Net earnings from discontinued operations 74   696   1,774   3,721
NET EARNINGS (LOSS) 979   1,872   (4,065)   (5,264)
         
         
NET EARNINGS (LOSS) ATTRIBUTABLE TO:        
  Shareholders of Boralex 468   1,238   (4,192)   (5,115)
  Non-controlling shareholders 511   634   127   (149)
NET EARNINGS (LOSS) 979   1,872   (4,065)   (5,264)
         
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX        
  Continuing operations 394   542   (5,966)   (8,836)
  Discontinued operations 74   696   1,774   3,721
  468   1,238   (4,192)   (5,115)
         
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX        
  Continuing operations $0.01   $0.01   ($0.16)   ($0.24)
  Discontinued operations   $0.02   $0.05   $0.10
  $0.01   $0.03   ($0.11)   ($0.14)

Consolidated Statements of Cash Flows

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
Net earnings (loss) 979   1,872   (4,065)   (5,264)
Less: Net earnings from discontinued operations 74   696   1,774   3,721
Net earnings (loss) from continuing operations 905   1,176   (5,839)   (8,985)
Financing costs 15,082   12,636   52,861   49,269
Interest paid (15,515)   (14,175)   (50,136)   (47,258)
Income tax expense (recovery) 1,624   1,229   537   (2,183)
Income taxes paid (647)   (2,694)   (3,372)   (5,334)
Non-cash items in earnings (loss):        
  Net loss (gain) on financial instruments (1,309)   (105)   (553)   286
  Amortization 15,595   15,021   55,496   58,030
  Impairment of property, plant and equipment and intangible assets     266   823
  Other losses (gains)     (232)   971
  Other 351   393   2,152   2,046
  16,086   13,481   51,180   47,665
Change in non-cash items related to operating activities 1,044   (9,444)   8,698   (791)
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES 17,130   4,037   59,878   46,874
         
Business acquisitions   (24,801)     (63,881)
Additions to property, plant and equipment (82,942)   (22,253)   (323,415)   (103,138)
Additions to other intangible assets   (402)     (2,550)
Change in restricted cash (46,921)   (9,364)   (53,063)   11,315
Change in reserve funds 23     (13,956)  
Development projects (2,177)   (178)   (9,666)   (3,422)
Proceeds from sale of assets 15     389   8,763
Other (247)   723   (463)   833
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (132,249)   (56,275)   (400,174)   (152,080)
         
Net increase in non-current debt 105,958   16,226   453,517   77,889
Repayments on non-current debt (4,097)   (3,747)   (101,471)   (28,088)
Contribution of non-controlling shareholders 1,856   4,307   2,593   22,513
Other 66     5   (2)
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES 103,783   16,786   354,644   72,312
Cash from discontinued operations 84   1,041   2,054   (3,642)
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS 1,906   1,055   4,001   (1,030)
NET CHANGE IN CASH AND CASH EQUIVALENTS (9,346)   (33,356)   20,403   (37,566)
         
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 136,887   140,494   107,138   144,704
CASH AND CASH EQUIVALENTS - END OF YEAR 127,541   107,138   127,541   107,138


Information by Operating Segment

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except MWh) (unaudited) 2013   2012   2013   2012
         
Power production (MWh)        
Wind power stations 249,276   210,838   704,217   632,422
Hydroelectric power stations 142,912   164,072   621,094   572,513
Thermal power stations 31,448   66,051   143,369   310,170
Solar power station 980   991   5,945   6,316
  424,616   441,952   1,474,625   1,521,421
         
Revenues from energy sales        
Wind power stations 31,676   25,124   87,481   74,654
Hydroelectric power stations 12,746   13,860   53,756   47,748
Thermal power stations 6,976   12,654   27,446   56,355
Solar power station 469   425   2,712   2,683
  51,867   52,063   171,395   181,440
         
EBITDA        
Wind power stations 26,136   21,321   69,957   60,816
Hydroelectric power stations 9,002   9,541   40,413   36,752
Thermal power stations 26   2,601   3,010   14,558
Solar power station 438   324   2,379   2,312
Corporate and eliminations (4,226)   (3,910)   (13,923)   (16,200)
  31,376   29,877   101,836   98,238

Information by Geographic Segment

  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except MWh) (unaudited) 2013   2012   2013   2012
         
Power production (MWh)        
Canada 169,293   181,870   593,143   729,443
United States 86,871   100,441   387,942   343,294
France 168,452   159,641   493,540   448,684
  424,616   441,952   1,474,625   1,521,421
         
Revenues from energy sales        
Canada 19,688   21,888   65,940   89,623
United States 7,295   7,960   31,601   26,375
France 24,884   22,215   73,854   65,442
  51,867   52,063   171,395   181,440
         
EBITDA        
Canada 11,467   10,269   37,253   40,664
United States 5,149   5,546   23,864   21,869
France 14,760   14,062   40,719   35,705
  31,376   29,877   101,836   98,238


III - Non-IFRS Measures


Non-IFRS Measures

The Corporation's power stations are grouped into four distinct operating segments - wind, hydroelectric, thermal and solar power. The Corporation operates under one reportable segment: power generation. The classification of these segments is based on the different cost structures relating to each of the four types of power stations. The same accounting rules are used for segmented information as for the consolidated accounts.

The operating segments are presented according to the same criteria used to prepare the internal report submitted to the segment leader who allocates resources and assesses operating segment performance. The President and Chief Executive Officer is considered the segment leader, who assesses segment performance based on power production, revenues from energy sales, EBITDA and cash flows from operations.

This section includes also an EBITDA and cash flows from operations presented on a Proportionate Consolidation basis in which the results of Seigneurie de Beaupré Wind Farms 2 and 3 and Seigneurie de Beaupré Wind Farm 4 General Partnerships (the "Joint Ventures"), which are 50% owned by Boralex, have been treated as if they were proportionately consolidated and not as if they were accounted for using the equity method as required by IFRS. Since the information Boralex uses to carry out internal analyses and make strategic and operating decisions is collected on a proportionate consolidation basis, management has considered it relevant to use this accounting basis for this presentation to make it easier for investors to understand the concrete impacts of decisions made by the Corporation. Moreover, tables reconciling IFRS data with data presented on a proportionate consolidation basis are included.

EBITDA

EBITDA does not have a standardized meaning under IFRS; accordingly, it may not be comparable to similarly named measures used by other companies. Investors should not view EBITDA as an alternative measure to, for example, net earnings (loss), or as a measure of operating results, which are IFRS measures.

EBITDA is reconciled to the most comparable IFRS measure, namely, net earnings (loss) attributable to shareholders of Boralex, in the following tables:

               
IFRS              
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
Net earnings (loss) attributable to shareholders of Boralex 529   1,238   (3,838)   (5,115)
Net earnings from discontinued operations (74)   (696)   (1,774)   (3,721)
Non-controlling shareholders 511   634   127   (149)
Income tax expense (recovery) 1,624   1,229   537   (2,183)
Net loss (gain) on financial instruments (69)   (103)   (742)   396
Foreign exchange loss (gain) (530)   (80)   (788)   26
Financing costs 13,061   12,640   50,693   49,279
Impairment of property, plant and equipment and intangible assets     266   823
Other losses (gains)     (232)   971
Amortization 13,987   15,021   53,888   58,030
         
EBITDA 29,039   29,883   98,137   98,357
         
               
               
Proportionate Consolidation              
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
Net earnings (loss) attributable to shareholders of Boralex 468   1,238   (4,192)   (5,115)
Net earnings from discontinued operations (74)   (696)   (1,774)   (3,721)
Non-controlling shareholders 511   634   127   (149)
Income tax expense (recovery) 1,624   1,229   537   (2,183)
Net loss (gain) on financial instruments (1,309)   (105)   (553)   286
Foreign exchange loss (gain) (521)   (80)   (700)   27
Financing costs 15,082   12,636   52,861   49,269
Impairment of property, plant and equipment and intangible assets     266   823
Other losses (gains)     (232)   971
Amortization 15,595   15,021   55,496   58,030
         
EBITDA on a Proportionate Consolidation basis 31,376   29,877   101,836   98,238
         
                 
Wind power segment              
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
EBITDA 24,279   21,327   66,594   60,935
         
Minus : Share in earnings (loss) of Joint Ventures 212   (13)   (1,426)   51
Plus : EBITDA Joint Ventures 2,069   (19)   1,937   (68)
  Non-EBITDA items 1,857   (6)   3,363   (119)
         
EBITDA on a Proportionate Consolidation basis 26,136   21,321   69,957   60,816
               
Consolidated              
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars) (unaudited) 2013   2012   2013   2012
EBITDA 29,039   29,883   98,137   98,357
         
Minus : Share in earnings (loss) of Joint Ventures (329)   (13)   (2,116)   51
Plus : EBITDA Joint Ventures 2,069   (19)   1,937   (68)
  Non-EBITDA items 2,398   (6)   4,053   (119)
         
Elimination of management revenues against property, plant and equipment (61)     (354)  
               
EBITDA on a Proportionate Consolidation basis 31,376   29,877   101,836   98,238


Cash flows from operations
Cash flows from operations are equal to net cash flows related to operating activities before the change in non-cash items related to operating activities. Management uses this measure to assess cash flows generated by the Corporation's operations and its capacity to finance its expansion through those funds. In light of the seasonal nature of the Corporation's operations and development activities, changes in non-cash items can vary considerably. In addition, development activities result in significant changes in Trade and other payables during the construction period, as well as an initial injection of working capital at project start-up. Accordingly, the Corporation considers it more representative not to integrate changes in non-cash items in this performance measure.

Investors should not consider cash flows from operations as an alternative measure to cash flows related to operating activities, which is an IFRS measure.

Cash flows from operations are reconciled to the most comparable IFRS measure, namely, net cash flows related to operating activities, in the following tables:

               
IFRS              
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except per share amounts) (unaudited) 2013   2012   2013   2012
Net cash flows related to operating activities 2,712   (1,712)   59,266   47,396
Change in non-cash items related to operating activities (12,610)   (15,207)   8,350   (325)
         
CASH FLOWS FROM OPERATIONS 15,322   13,495   50,916   47,721
         
CASH FLOWS FROM OPERATIONS (per share) $0.41   $0.36   $1.35   $1.26
         
               
         
Proportionate Consolidation        
  Three-month periods
ended December 31
  Years ended
December 31
(in thousands of Canadian dollars, except per share amounts) (unaudited) 2013   2012   2013   2012
Net cash flows related to operating activities 17,130   4,037   59,878   46,874
Change in non-cash items related to operating activities 1,044   (9,444 ) 8,698   (791)
         
CASH FLOWS FROM OPERATIONS
on a Proportionate Consolidation basis
16,086   13,481   51,180   47,665
         
CASH FLOWS FROM OPERATIONS (per share)
on a Proportionate Consolidation basis
$0.43   $0.36   $1.36   $1.26
         



IV - Reconciliations between IFRS and Proportionate Consolidation


Financial Highlights

  2013
(in thousands of Canadian dollars, except MWh and per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
       
POWER PRODUCTION (MWh)      
Wind power stations 682,136   22,081   704,217
Hydroelectric power stations 621,094     621,094
Thermal power stations 143,369     143,369
Solar power station 5,945     5,945
  1,452,544   22,081   1,474,625
REVENUES FROM ENERGY SALES      
Wind power stations 85,109   2,372   87,481
Hydroelectric power stations 53,756     53,756
Thermal power stations 27,446     27,446
Solar power station 2,712     2,712
  169,023   2,372   171,395
EBITDA      
Wind power stations 66,594   3,363   69,957
Hydroelectric power stations 40,413     40,413
Thermal power stations 3,010     3,010
Solar power station 2,379     2,379
  112,396   3,363   115,759
Corporate and eliminations (14,259)   336   (13,923)
  98,137   3,699   101,836
CASH FLOWS FROM OPERATIONS      
  In dollars 50,916   264   51,180
  Per share (basic) $1.35   $0.01   $1.36
   
  2012
(in thousands of Canadian dollars, except MWh and per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
       
POWER PRODUCTION (MWh)      
Wind power stations 632,422     632,422
Hydroelectric power stations 572,513     572,513
Thermal power stations 310,170     310,170
Solar power station 6,316     6,316
  1,521,421     1,521,421
REVENUES FROM ENERGY SALES      
Wind power stations 74,654     74,654
Hydroelectric power stations 47,748     47,748
Thermal power stations 56,355     56,355
Solar power station 2,683     2,683
  181,440     181,440
EBITDA      
Wind power stations 60,935   (119)   60,816
Hydroelectric power stations 36,752     36,752
Thermal power stations 14,558     14,558
Solar power station 2,312     2,312
  114,557   (119)   114,438
Corporate and eliminations (16,200)     (16,200)
  98,357   (119)   98,238
CASH FLOWS FROM OPERATIONS      
  In dollars 47,721   (56)   47,665
  Per share (basic) $1.26     $1.26


Consolidated Statements of Financial Position

  2013
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
ASSETS      
Cash and cash equivalents 124,942   2,599   127,541
Restricted cash 19,366   40,760   60,126
Trade and other receivables 41,625   31,133   72,758
Inventories 4,502     4,502
Prepaid expenses 2,945     2,945
CURRENT ASSETS 193,380   74,492   267,872
       
Property, plant and equipment 799,213   380,440   1,179,653
Other intangible assets 257,058     257,058
Goodwill 49,890     49,890
Interest in Joint Ventures 90,880   (90,880)  
Other non-current financial assets 289   973   1,262
Other non-current assets 32,017   3,688   35,705
NON-CURRENT ASSETS 1,229,347   294,221   1,523,568
TOTAL ASSETS 1,422,727   368,713   1,791,440
LIABILITIES      
Trade and other payables 57,992   23,615   81,607
Current portion of debt 84,034   38,475   122,509
Current income tax liability 1,516     1,516
Other current financial liabilities 15,243     15,243
CURRENT LIABILITIES 158,785   62,090   220,875
       
Non-current debt 578,914   276,570   855,484
Convertible debentures 229,578     229,578
Deferred income tax liability 37,493     37,493
Decommissioning liability 7,198   962   8,160
Other non-current financial liabilities 19,704     19,704
Other non-current liabilities 4,921   29,445   34,366
NON-CURRENT LIABILITIES 877,808   306,977   1,184,785
TOTAL LIABILITIES 1,036,593   369,067   1,405,660
EQUITY      
Equity attributable to shareholders 356,448   (354)   356,094
Non-controlling shareholders 29,686     29,686
TOTAL EQUITY 386,134   (354)   385,780
TOTAL LIABILITIES AND EQUITY 1,422,727   368,713   1,791,440

Consolidated Statements of Financial Position

  2012
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
ASSETS      
Cash and cash equivalents 107,138     107,138
Restricted cash 5,063   6,587   11,650
Trade and other receivables 45,589   3,341   48,930
Inventories 4,404     4,404
Other current financial assets   14   14
Available-for-sale financial asset 3,009     3,009
Prepaid expenses 2,137     2,137
CURRENT ASSETS 167,340   9,942   177,282
       
Property, plant and equipment 689,024   123,806   812,830
Other intangible assets 253,115     253,115
Goodwill 48,663     48,663
Interest in Joint Ventures 58,994   (58,994)  
Other non-current assets 12,735   18,539   31,274
NON-CURRENT ASSETS 1,062,531   83,351   1,145,882
TOTAL ASSETS 1,229,871   93,293   1,323,164
LIABILITIES      
Trade and other payables 46,945   3,881   50,826
Current portion of debt 98,570     98,570
Current income tax liability 1,741     1,741
Other current financial liabilities 25,508   3,834   29,342
CURRENT LIABILITIES 172,764   7,715   180,479
       
Non-current debt 423,616   71,474   495,090
Convertible debentures 226,299     226,299
Deferred income tax liability 29,514   (1)   29,513
Decommissioning liability 5,765   334   6,099
Other non-current financial liabilities 24,698   13,771   38,469
Other non-current liabilities 4,846     4,846
NON-CURRENT LIABILITIES 714,738   85,578   800,316
TOTAL LIABILITIES 887,502   93,293   980,795
EQUITY      
Equity attributable to shareholders 319,868     319,868
Non-controlling shareholders 22,501     22,501
TOTAL EQUITY 342,369     342,369
TOTAL LIABILITIES AND EQUITY 1,229,871   93,293   1,323,164


Consolidated Statements of Earnings (Loss)

  Three-month period ended December 31
  2013
(in thousands of Canadian dollars, except per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
REVENUES      
Revenues from energy sales 49,496   2,371   51,867
Other income 331   11   342
  49,827   2,382   52,209
       
COSTS AND OTHER EXPENSES      
Operating expenses 15,952   342   16,294
Administration 3,263   32   3,295
Development 1,181     1,181
Amortization 13,987   1,608   15,595
  34,383   1,982   36,365
       
OPERATING INCOME 15,444   400   15,844
       
Financing costs 13,061   2,021   15,082
Foreign exchange loss (gain) (530)   9   (521)
Net loss on financial instruments (69)   (1,240)   (1,309)
Share in earnings (loss) of the Joint Ventures (329)   329  
Other 63     63
       
EARNINGS (LOSS) BEFORE INCOME TAXES 2,590   (61)   2,529
       
Income tax expense 1,624     1,624
       
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS 966   (61)   905
       
Net earnings from discontinued operations 74     74
NET EARNINGS (LOSS) 1,040   (61)   979
       
       
NET EARNINGS (LOSS) ATTRIBUTABLE TO:      
  Shareholders of Boralex 529   (61)   468
  Non-controlling shareholders 511     511
NET EARNINGS (LOSS) 1,040   (61)   979
       
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations 455   (61)   394
  Discontinued operations 74     74
  529   (61)   468
       
NET EARNINGS PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations $0.01     $0.01
  Discontinued operations    
  $0.01     $0.01

Consolidated Statements of Earnings

  Three-month period ended December 31
  2012
(in thousands of Canadian dollars, except per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
REVENUES      
Revenues from energy sales 52,063     52,063
Other income 2,401     2,401
  54,464     54,464
       
COSTS AND OTHER EXPENSES      
Operating expenses 18,868     18,868
Administration 4,347   17   4,364
Development 1,353   2   1,355
Amortization 15,021     15,021
  39,589   19   39,608
       
OPERATING INCOME (LOSS) 14,875   (19)   14,856
       
Financing costs 12,640   (4)   12,636
Foreign exchange gain (80)     (80)
Net loss on financial instruments (103)   (2)   (105)
Share in earnings (loss) of the Joint Ventures (13)   13  
       
EARNINGS BEFORE INCOME TAXES 2,405     2,405
       
Income tax expense 1,229     1,229
       
NET EARNINGS FROM CONTINUING OPERATIONS 1,176     1,176
       
Net earnings from discontinued operations 696     696
NET EARNINGS 1,872     1,872
       
       
NET EARNINGS ATTRIBUTABLE TO:      
  Shareholders of Boralex 1,238     1,238
  Non-controlling shareholders 634     634
NET EARNINGS 1,872     1,872
       
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations 542     542
  Discontinued operations 696     696
  1,238     1,238
       
NET EARNINGS PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations $0.01     $0.01
  Discontinued operations $0.02     $0.02
  $0.03     $0.03

Consolidated Statements of Earnings (Loss)

  Year ended December 31
  2013
(in thousands of Canadian dollars, except per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
REVENUES      
Revenues from energy sales 169,023   2,372   171,395
Other income 3,009   (283)   2,726
  172,032   2,089   174,121
       
COSTS AND OTHER EXPENSES      
Operating expenses 54,357   342   54,699
Administration 13,214   167   13,381
Development 4,145   (3)   4,142
Amortization 53,888   1,608   55,496
Other gains (232)     (232)
Impairment of property, plant and equipment and intangible assets 266     266
  125,638   2,114   127,752
       
OPERATING INCOME (LOSS) 46,394   (25)   46,369
       
Financing costs 50,693   2,168   52,861
Foreign exchange loss (gain) (788)   88   (700)
Net loss (gain) on financial instruments (742)   189   (553)
Share in earnings (loss) of the Joint Ventures (2,116)   2,116  
Other 63     63
       
LOSS BEFORE INCOME TAXES (4,948)   (354)   (5,302)
       
Income tax expense 537     537
       
NET LOSS FROM CONTINUING OPERATIONS (5,485)   (354)   (5,839)
       
Net earnings from discontinued operations 1,774     1,774
NET LOSS (3,711)   (354)   (4,065)
       
       
NET EARNINGS (LOSS) ATTRIBUTABLE TO:      
  Shareholders of Boralex (3,838)   (354)   (4,192)
  Non-controlling shareholders 127     127
NET LOSS (3,711)   (354)   (4,065)
       
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations (5,612)   (354)   (5,966)
  Discontinued operations 1,774     1,774
  (3,838)   (354) ) (4,192)
       
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations ($0.15)   ($0.01)   ($0.16)
  Discontinued operations $0.05     $0.05
  ($0.10)   ($0.01)   ($0.11)

Consolidated Statements of Earnings (Loss)

  Year ended December 31
  2012
(in thousands of Canadian dollars, except per share amounts) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
REVENUES      
Revenues from energy sales 181,440     181,440
Other income 2,853     2,853
  184,293     184,293
       
COSTS AND OTHER EXPENSES      
Operating expenses 66,330     66,330
Administration 14,528   63   14,591
Development 5,129   5   5,134
Amortization 58,030     58,030
Other losses 971     971
Impairment of property, plant and equipment and intangible assets 823     823
  145,811   68   145,879
       
OPERATING INCOME (LOSS) 38,482   (68)   38,414
       
Financing costs 49,279   (10)   49,269
Foreign exchange loss 26   1   27
Net loss (gain) on financial instruments 396   (110)   286
Share in earnings (loss) of the Joint Ventures 51   (51)  
       
LOSS BEFORE INCOME TAXES (11,168)     (11,168)
       
Income tax recovery (2,183)     (2,183)
       
NET LOSS FROM CONTINUING OPERATIONS (8,985)     (8,985)
       
Net earnings from discontinued operations 3,721     3,721
NET LOSS (5,264)     (5,264)
       
       
NET LOSS ATTRIBUTABLE TO:      
  Shareholders of Boralex (5,115)     (5,115)
  Non-controlling shareholders (149)     (149)
NET LOSS (5,264)     (5,264)
       
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations (8,836)     (8,836)
  Discontinued operations 3,721     3,721
  (5,115)     (5,115)
       
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX      
  Continuing operations ($0.24)     ($0.24)
  Discontinued operations $0.10     $0.10
  ($0.14)     ($0.14)


Consolidated Statements of Cash Flows

  Three-month period ended December 31
  2013
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
Net earnings (loss) 1,040   (61)   979
Less: Net earnings from discontinued operations 74     74
Net earnings (loss) from continuing operations 966   (61)   905
Financing costs 13,061   2,021   15,082
Interest paid (14,280)   (1,235)   (15,515)
Income tax expense 1,624     1,624
Income taxes paid (647)     (647)
Non-cash items in earnings (loss):      
  Net loss on financial instruments (69)   (1,240)   (1,309)
  Share in results of Joint Ventures 329   (329)  
  Amortization 13,987   1,608   15,595
  Other 351     351
  15,322   764   16,086
Change in non-cash items related to operating activities (12,610)   13,654   1,044
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES 2,712   14,418   17,130
       
Additions to property, plant and equipment (28,395)   (54,547)   (82,942)
Change in restricted cash (9,529)   (37,392)   (46,921)
Increase in interest in Joint Ventures (2,781)   2,781  
Change in reserve funds 23     23
Development projects (2,177)     (2,177)
Proceeds from sale of assets 15     15
Other (247)     (247)
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (43,091)   (89,158)   (132,249)
       
Net increase in non-current debt 29,439   76,519   105,958
Repayments on non-current debt (4,097)     (4,097)
Contribution of non-controlling shareholders 1,856     1,856
Other 66     66
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES 27,264   76,519   103,783
Cash from discontinued operations 84     84
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS 1,906     1,906
NET CHANGE IN CASH AND CASH EQUIVALENTS (11,125)   1,779   (9,346)
       
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 136,067   820   136,887
CASH AND CASH EQUIVALENTS - END OF PERIOD 124,942   2,599   127,541


Consolidated Statements of Cash Flows

  Three-month period ended December 31
  2012
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
Net earnings 1,872     1,872
Less: Net earnings from discontinued operations 696     696
Net earnings from continuing operations 1,176     1,176
Financing costs 12,640   (4)   12,636
Interest paid (14,180)   5   (14,175)
Income tax expense 1,229     1,229
Income taxes paid (2,694)     (2,694)
Non-cash items in earnings:      
  Net loss on financial instruments (103)   (2)   (105)
  Share in results of Joint Ventures 13   (13)  
  Amortization 15,021     15,021
  Other 393     393
  13,495   (14)   13,481
Change in non-cash items related to operating activities (15,207)   5,763   (9,444)
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES (1,712)   5,749   4,037
       
Business acquisitions (24,801)     (24,801)
Additions to property, plant and equipment (4,787)   (17,466)   (22,253)
Additions to other intangible assets (402)     (402)
Change in restricted cash (4,856)   (4,508)   (9,364)
Development projects (178)     (178)
Other 723     723
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (34,301)   (21,974)   (56,275)
       
Net increase in non-current debt   16,226   16,226
Repayments on non-current debt (3,747)     (3,747)
Contribution of non-controlling shareholders 4,307     4,307
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES 560   16,226   16,786
Cash from discontinued operations 1,041     1,041
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS 1,055     1,055
NET CHANGE IN CASH AND CASH EQUIVALENTS (33,357)   1   (33,356)
       
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 140,495   (1)   140,494
CASH AND CASH EQUIVALENTS - END OF PERIOD 107,138     107,138

Consolidated Statements of Cash Flows

  Year ended December 31
  2013
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
Net loss (3,711)   (354)   (4,065)
Less: Net earnings from discontinued operations 1,774     1,774
Net loss from continuing operations (5,485)   (354)   (5,839)
Financing costs 50,693   2,168   52,861
Interest paid (48,905)   (1,231)   (50,136)
Income tax expense 537     537
Income taxes paid (3,372)     (3,372)
Non-cash items in loss:      
  Net loss (gain) on financial instruments (742)   189   (553)
  Share in results of Joint Ventures 2,116   (2,116)  
  Amortization 53,888   1,608   55,496
  Impairment of property, plant and equipment and intangible assets 266     266
  Other gains (232)     (232)
  Other 2,152     2,152
  50,916   264   51,180
Change in non-cash items related to operating activities 8,350   348   8,698
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES 59,266   612   59,878
       
Additions to property, plant and equipment (107,479)   (215,936)   (323,415)
Change in restricted cash (18,890)   (34,173)   (53,063)
Increase in interest in Joint Ventures (8,318)   8,318  
Change in reserve funds (13,956)     (13,956)
Development projects (9,666)     (9,666)
Proceeds from sale of assets 389     389
Other (463)     (463)
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (158,383)   (241,791)   (400,174)
       
Net increase in non-current debt 209,739   243,778   453,517
Repayments on non-current debt (101,471)     (101,471)
Contribution of non-controlling shareholders 2,593     2,593
Other 5     5
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES 110,866   243,778   354,644
Cash from discontinued operations 2,054     2,054
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS 4,001     4,001
NET CHANGE IN CASH AND CASH EQUIVALENTS 17,804   2,599   20,403
       
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 107,138     107,138
CASH AND CASH EQUIVALENTS - END OF YEAR 124,942   2,599   127,541

Consolidated Statements of Cash Flows

  Year ended December 31
  2012
(in thousands of Canadian dollars) (unaudited) IFRS   Adjustments
Joint
Ventures
  Proportionate
Consolidation
Net loss (5,264)     (5,264)
Less: Net earnings from discontinued operations 3,721     3,721
Net loss from continuing operations (8,985)     (8,985)
Financing costs 49,279   (10)   49,269
Interest paid (47,271)   13   (47,258)
Income tax recovery (2,183)     (2,183)
Income taxes paid (5,334)     (5,334)
Non-cash items in loss:      
  Net loss (gain) on financial instruments 396   (110)   286
  Share in results of Joint Ventures (51)   51  
  Amortization 58,030     58,030
  Impairment of property, plant and equipment and intangible assets 823     823
  Other losses 971     971
  Other 2,046     2,046
  47,721   (56)   47,665
Change in non-cash items related to operating activities (325)   (466)   (791)
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES 47,396   (522)   46,874
       
Business acquisitions (63,881)     (63,881)
Additions to property, plant and equipment (10,320)   (92,818)   (103,138)
Additions to other intangible assets (2,550)     (2,550)
Change in restricted cash 13,225   (1,910)   11,315
Increase in interest in Joint Ventures (17,735)   17,735  
Development projects (3,422)     (3,422)
Proceeds from sale of assets 8,763     8,763
Other 833     833
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES (75,087)   (76,993)   (152,080)
       
Net increase in non-current debt   77,889   77,889
Repayments on non-current debt (27,713)   (375)   (28,088)
Contribution of non-controlling shareholders 22,513     22,513
Other (2)     (2)
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES (5,202)   77,514   72,312
Cash from discontinued operations (3,642)     (3,642)
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS (1,030)     (1,030)
NET CHANGE IN CASH AND CASH EQUIVALENTS (37,565)   (1)   (37,566)
       
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 144,703   1   144,704
CASH AND CASH EQUIVALENTS - END OF YEAR 107,138     107,138

 

 

 

 

 

SOURCE Boralex Inc.



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