Algonquin Power & Utilities Corp. Announces 2009 Fourth Quarter and Year End Financial Results

OAKVILLE, ON, March 4 /PRNewswire-FirstCall/ - Algonquin Power & Utilities Corp. (TSX: AQN), today announced financial results for the fourth quarter and year ended December 31, 2009. On October 27, 2009, Algonquin Power Income Fund became a wholly owned subsidiary of Algonquin Power & Utilities Corp., maintaining the same operations and business activities, but under a corporate structure with Algonquin Power Income Fund's unitholders becoming shareholders of the new Algonquin Power & Utilities Corp. (collectively "APUC").

APUC ended the year having completed several significant accomplishments. The change in business form from an income trust structure to a corporate structure will facilitate APUC's long term growth as it now focuses on providing total shareholder return through a combination of dividends and capital appreciation realized through the successful execution of its business strategies. Major growth initiatives accomplished in the year included the announcement of the acquisition of a regulated electricity distribution utility in California, serving over 47,000 customers, which is expected to close later in 2010. APUC also grew its renewable power portfolio with the announcement of the acquisition of 36.8 MW of hydroelectric generating assets in New Brunswick and Maine which closed on January 12, 2010.

For the fourth quarter of 2009, revenue was $43.4 million as compared to $56.5 million in the fourth quarter of 2008 and $45.1 in the third quarter of 2009. The decrease in revenue is due to reduced average energy rates and lower demand for steam at the Sanger and Windsor Locks facilities in the Thermal Energy division and lower weighted average energy rates and lower average hydrology and wind resources in the Renewable Energy division. In addition, revenue decreased as a result of a stronger Canadian dollar as compared to the same period in 2008.

Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") was $18.0 million in the fourth quarter of 2009 as compared to $23.3 million in the fourth quarter of 2008 and $20.3 in the third quarter of 2009. The decrease in Adjusted EBITDA is primarily related to lower gas prices and reduced demand for steam at APUC's thermal energy facilities and lower average energy rates earned by the U.S. renewable energy facilities.

Adjusted net earnings in the fourth quarter of 2009 were $11.5 million or $0.14 per share as compared to adjusted net earnings of $8.8 million or $0.12 per share in the fourth quarter of 2008 and $13.1 million or $0.09 per share in the third quarter of 2009. APUC uses adjusted net earnings to assess 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 a net loss in the fourth quarter of 2009 of $1.4 million or $0.03 per share as compared to a net loss of $21.1 million or $0.28 per share for the fourth quarter of 2008 and net earnings of $13.1 million or $0.17 per share in the third quarter of 2009.

Performance Summary for the fourth quarter of 2009:

    -   Revenue of $43.4 million in Q4 2009 as compared to $56.5 million in
        Q4 2008.

    -   Adjusted EBITDA of $18.0 million in Q4 2009 as compared to
        $23.3 million in Q4 2008.

    -   Adjusted net earnings of $11.5 million or $0.14 per share in Q4 2009
        as compared to adjusted net earnings of $8.8 million or $0.12 per
        share in Q4 2008.

    -   Net loss of $1.4 million or $0.03 per share in Q4 2009 as compared to
        a net loss of $21.1 million or $0.28 per share in Q4 2008.

    Performance Summary for the year ended December 31, 2009:

    -   Revenue of $187.3 million for the year 2009 as compared to
        $213.8 million in 2008.

    -   Adjusted EBITDA of $79.4 million for the year 2009 as compared to
        $90.0 million in 2008.

    -   Adjusted net earnings of $30.5 million or $0.38 per share in 2009 as
        compared to adjusted net earnings of $18.9 million or $0.25 per share
        in 2008.

    -   Net earnings of $31.3 million or $0.39 per share in 2009 as compared
        to a net loss of $19.0 million or $0.25 per share in 2008.

"APUC is pleased at the breadth and scope of the significant changes which have occurred through 2009, with the organization finishing the year looking dramatically different than when it entered the year," commented Ian Robertson, Chief Executive Officer of APUC. "Despite the volatility in the capital markets and wavering global economic environment in 2009, APUC achieved several major goals we had set for ourselves including positioning the company for growth in 2010 by strengthening our balance sheet through our $86 million dollar financing of common shares and convertible debentures in December. APUC is optimistic that the diversification of its portfolio, coupled with the impact of its committed growth initiatives, will serve the organization well in 2010."

APUC's financial information and analysis are available on our web site at www.algonquinpowerandutilities.com.

APUC will hold an earnings conference call at 10:00 a.m. eastern time on Friday, March 5, 2010, hosted by Chief Executive Officer Ian Robertson and Chief Financial Officer David Bronicheski.

    Conference call details are as follows:

    Date: Friday, March 5, 2010
    Start Time: 10:00 a.m. eastern
    Phone Number: Toll free within North America: 1-877-974-0446 or local
    416-644-3418.
    Conference ID #: 4224434

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 4224434 followed by the number sign from March 5, 2010 until March 12, 2010.

About Algonquin Power & Utilities Corp.

Through its distinct operating subsidiaries, APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses throughout North America. APUC's electric generation subsidiary, carrying on business as Algonquin Power Co., includes 45 renewable energy facilities and 11 high efficiency thermal energy facilities representing more than 450 MW of installed capacity. Through its wholly owned subsidiary, Liberty Water Co., APUC provides regulated utility services to more than 70,000 customers across 18 water distribution and wastewater treatment utility systems. Pursuant to a previously announced agreement, APUC is committed to acquiring the California based regulated utility electric distribution and generation assets of NV Energy which serve approximately 47,000 retail electricity distribution customers. APUC and its operating subsidiaries deliver continuing growth through an expanding pipeline of greenfield and expansion renewable power and clean energy projects, organic growth within its regulated utilities and the aggressive pursuit of accretive acquisition opportunities. APUC's common shares and convertible debentures are traded on the Toronto Stock Exchange under the symbols AQN, AQN.DB, AQN.DB.A, and AQN.DB.B. Visit Algonquin Power & Utilities Corp. on the web at www.AlgonquinPowerandUtilities.com.

Forward-Looking Information

This news release may contain certain information that is future-oriented, including information and statements regarding prospective results of operations, financial position or cash flows. These statements and information are forward-looking, and 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, and other factors believed to be appropriate in the circumstances. Although the forward-looking statements and information are based upon management's current expectations and assumptions, they are subject to numerous risks and uncertainties, including those set out in the management's discussion and analysis section of APUC's 2008 annual report, APUC's Annual Information Form dated March 31, 2009, and APUC's Management Information Circular dated March 20, 2009. Readers are cautioned that such risks and uncertainties may cause APUC's actual results to vary materially from those expressed in, or implied by, the forward-looking statements and information. Any forward-looking statements or information contained in this news release are made as of the date hereof for the purpose of providing readers with APUC's expectations for the coming financial period(s), and may not be appropriate for other purposes. 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.