Atlantic Power Corporation
Atlantic Power Corporation Releases Fourth Quarter and Year End 2016 Results
Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") reported its financial results for the three months and year ended December 31, 2016. For additional information regarding the Company's 2016 performance, 2017 guidance and certain operational updates, including the status of certain upcoming Power Purchase Agreement (PPA) renewals, please consult Management's prepared remarks and the accompanying presentation, which will be available on the Conference Calls page of the Company's website (www.atlanticpower.com).
Fourth Quarter 2016 Financial Results (vs. 2015)
- Cash provided by operating activities of $19.9 million vs. $19.7 million
- Net loss of $(6.6) million vs. $(88.6) million; 2015 included a $127.8 million impairment charge
- Project income of $13.3 million vs. project loss of $(104.3) million, including impairment charges
- Project Adjusted EBITDA of $42.3 million vs. $50.4 million; decline was attributable to lower water flows at Curtis Palmer, lower waste heat, and a scheduled maintenance outage at Oxnard
Full Year 2016 Financial Results (vs. 2015)
- Cash provided by operating activities of $111.8 million vs. $87.4 million
- Net loss of $(122.4) million vs. $(62.4) million; both years included significant impairment charges
- Project income of $10.1 million vs. project loss of $(41.4) million
- Project Adjusted EBITDA of $202.2 million vs. $208.9 million; results were below the Company's guidance of $205 to $215 million due to lower water flows at Curtis Palmer, lower waste heat and severance costs at three Ontario projects
- Achieved net reduction in debt in 2016 of $22 million, despite upsizing term loan in April; now have significantly improved debt maturity profile
- Repurchased 8.1 million common shares at an average price of $2.42 since December 2015
- Reduced total overhead costs by 28% to $23 million in 2016 from $32 million in 2015
- Initiated 2017 Project Adjusted EBITDA guidance (see page 4 of this release)
- Expect to repay another $150 million or more of debt in 2017
"During 2016, we refinanced our existing term loan and revolver with a larger $700 million term loan and a $200 million revolver, both with extended maturity dates. We also paid down $288 million of debt, ending the year with a reduction in consolidated debt of approximately $22 million, net of the term loan upsizing. Since year end 2013, we have reduced consolidated debt by more than $800 million and improved our maturity profile considerably. We also made further progress in reducing our interest payments and corporate overhead costs, which are now $60 million and $31 million lower than 2013 levels, respectively," said James J. Moore, Jr., President and CEO of Atlantic Power. "In addition, we have lowered our share count by 6.6% since December 2015 by repurchasing and canceling approximately 8.1 million common shares at an average price of $2.42 per share."
"By strengthening our balance sheet, addressing our near-term maturities and reducing our fixed costs, we believe that we have positioned the Company to take a disciplined approach on renewals of PPAs and withstand an extended downturn in a very cyclical business," said Mr. Moore. "We are enthusiastic about our strengthened financial position, expected 2017 operating cash flow and the uses of capital that we have available which are consistent with our objective of increasing intrinsic value per share."
Mr. Moore continued, "After two years of dramatic change, the Company is now in a position to pay down an additional $150 million or more of debt in 2017; continue to repurchase shares when they trade at a significant discount to our estimates of intrinsic value per share, as they do today; work toward PPA renewals without financial pressure to transact quickly in a down market, and begin to implement a growth strategy, with efforts currently focused on industrial customers."
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