Boralex Announces Results for Third Quarter 2009
(in millions of dollars, except per share data)
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Three-month Nine-month
periods ended periods ended
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September September September September
30, 2009 30, 2008 30, 2009 30, 2008
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Revenue from
energy sales 39.7 48.8 138.6 142.9
EBITDA 11.4 16.8 45.3 53.2
Net earnings 0.7 5.7 9.7 16.0
Net earnings per
share (basic) $0.02 $0.15 $0.26 $0.42
Cash flow from
operations 9.2 13.9 36.1 44.1
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In the third quarter ended
Third quarter revenue of
The Corporation also successfully qualified for the Advanced RESOP program, which will augment the selling price by about
The hydroelectric segment reported revenue of
In the third quarter 2009, revenue from the wood-residue thermal power segment amounted to
Results for the natural gas cogeneration power station continue to be affected by lower steam selling prices, which reduced revenues by
"Despite the difficult economic conditions in the energy market, Boralex continues to maintain significant cash flows, which makes it easier for it to achieve its strategic objectives in
About Boralex
Boralex is a major private electricity producer whose core business is the development and operation of power stations that generate renewable energy.
Employing over 300 people, the Corporation owns and operates 22 power stations with a total installed capacity of 365 MW in
Boralex also holds a 23% interest in Boralex Power Income Fund, which has 10 power stations with a total installed capacity of 190 MW in Québec and the
Boralex shares are listed on the
More information is available at www.boralex.com or www.sedar.com.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions on market and industry, increases in raw material costs, changes in the relative values of certain currencies, fluctuations in selling prices, and other factors listed in the Company's filings with different securities commissions.
The summarized financial statements included in this press release also contain certain financial measurements that are not recognized as Generally Accepted Accounting Principles of
Notice to shareholders
These interim consolidated financial statements as at
The following financial information was extracted from the interim consolidated financial statements of Boralex Inc. (the "Corporation"). The complete interim financial statements were prepared in accordance with Canadian generally accepted accounting principles. They are available on Boralex's website (www.boralex.com) and filed with SEDAR.
Consolidated Balance Sheets
AS AT AS AT
SEPTEMBER 30, DECEMBER 31,
(in thousands of dollars) (unaudited) 2009 2008
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(RESTATED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 37,638 69,195
Accounts receivable 38,114 48,812
Future income taxes 421 238
Inventories 10,362 8,833
Prepaid expenses 2,681 2,106
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89,216 129,184
Investment 63,043 69,348
Property, plant and equipment 355,075 330,443
Power sales contracts 25,527 26,402
Other assets 77,928 67,578
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610,789 622,955
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LIABILITIES
CURRENT LIABILITIES
Bank loans and advances 13,217 -
Accounts payable and accrued liabilities 17,614 22,115
Income taxes 1,672 1,716
Other liabilities 2,287 5,718
Current portion of long-term debt 28,607 29,410
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63,397 58,959
Long-term debt 171,022 158,035
Future income taxes 36,600 39,437
Fair value of derivative financial instruments 6,127 3,000
Non-controlling interests 126 804
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277,272 260,235
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SHAREHOLDERS' EQUITY
Capital stock 222,694 222,694
Contributed surplus 3,939 3,069
Retained earnings 145,188 135,461
Accumulated other comprehensive income (loss) (38,304) 1,496
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333,517 362,720
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610,789 622,955
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Consolidated Statements of Earnings
(in thousands of
dollars, except
amounts per FOR THE THREE-MONTH FOR THE NINE-MONTH
share and number PERIODS ENDED PERIODS ENDED
of shares) SEPTEMBER 30, SEPTEMBER 30,
(unaudited) 2009 2008 2009 2008
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(RESTATED) (RESTATED)
Revenues from
energy sales 39,676 48,811 138,631 142,931
Renewable energy
tax credits 3,473 3,532 10,449 9,063
Operating costs 28,339 34,079 97,193 96,718
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14,810 18,264 51,887 55,276
Share in earnings
of the Fund 146 1,180 2,998 6,218
Management
revenues from
the Fund 1,338 1,349 4,087 4,042
Other income 117 514 1,773 1,159
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16,411 21,307 60,745 66,695
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OTHER EXPENSES
Management and
operation of
the Fund 1,104 1,073 3,441 3,050
Administrative 3,862 3,469 11,964 10,414
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4,966 4,542 15,405 13,464
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OPERATING INCOME
BEFORE
AMORTIZATION 11,445 16,765 45,340 53,231
Amortization 6,434 6,344 19,382 18,150
Foreign exchange
loss (gain) 236 (185) 202 (603)
Net loss (gain)
on financial
instruments 398 (1,010) (6) 94
Financing costs 3,362 3,515 10,228 9,971
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10,430 8,664 29,806 27,612
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EARNINGS BEFORE
INCOME TAXES 1,015 8,101 15,534 25,619
Income taxes 316 2,427 5,751 9,495
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699 5,674 9,783 16,124
Non-controlling
interests (1) 5 (56) (112)
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NET EARNINGS 698 5,679 9,727 16,012
Net earnings
per Class A
share (basic) $0.02 $0.15 $0.26 $0.42
Net earnings
per Class A
share (diluted) $0.02 $0.15 $0.26 $0.42
Weighted average
number of
Class A shares
outstanding
(basic) 37,740,921 37,831,382 37,740,921 37,739,288
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Consolidated Statements of Retained Earnings
FOR THE NINE-MONTH
PERIODS ENDED
SEPTEMBER 30,
(in thousands of dollars) (unaudited) 2009 2008
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(RESTATED)
Balance - beginning of period, as previously
reported 135,783 115,669
Application of Section (322) (336)
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Balance - beginning of period 135,461 115,333
Share redemption premium - (83)
Net earnings for the period 9,727 16,012
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Balance - end of period 145,188 131,262
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Consolidated Statements of Comprehensive Income (Loss)
FOR THE THREE-MONTH FOR THE NINE-MONTH
PERIODS ENDED PERIODS ENDED
(in thousands of SEPTEMBER 30, SEPTEMBER 30,
dollars) (unaudited) 2009 2008 2009 2008
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(RESTATED) (RESTATED)
Net earnings for
the period 698 5,679 9,727 16,012
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Other
comprehensive
income (loss)
TRANSLATION
ADJUSTMENTS
Unrealized
foreign
exchange
gain (loss)
on translation
of financial
statements
of self-
sustaining
foreign
operations (15,215) 3,090 (26,333) 10,466
Reclassification
to net earnings
of a realized
foreign
exchange gain
related to the
reduction of
net investment
in self-
sustaining
foreign
operations - - (65) -
Share of
cumulative
translation
adjustments
of the Fund (1,036) 699 (2,073) 868
Taxes 258 (224) 548 (228)
CASH FLOW HEDGES
Change in fair
value of
financial
instruments (2,099) 26,988 7,101 10,651
Hedging items
realized and
recognized in
net earnings (5,857) (49) (18,617) 1,170
Hedging items
realized and
recognized in
balance sheet (1,352) (673) (3,613) (673)
Taxes 2,495 (8,405) 3,732 (3,567)
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(22,806) 21,426 (39,320) 18,687
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Comprehensive
income (loss)
for the period (22,108) 27,105 (29,593) 34,699
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Consolidated Statements of Cash Flows
FOR THE THREE-MONTH FOR THE NINE-MONTH
PERIODS ENDED PERIODS ENDED
(in thousands of SEPTEMBER 30, SEPTEMBER 30,
dollars) (unaudited) 2009 2008 2009 2008
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(RESTATED) (RESTATED)
OPERATING ACTIVITIES
Net earnings 698 5,679 9,727 16,012
Distributions
received from
the Fund 2,409 2,409 7,228 7,917
Adjustments for
non-cash items
Financial
instruments 535 (1,010) 534 94
Share in
earnings of
the Fund (146) (1,180) (2,998) (6,218)
Amortization 6,434 6,344 19,382 18,150
Amortization of
deferred
financing
costs and
monetization
program expenses 667 712 2,174 2,144
Renewable energy
tax credits (2,231) (1,506) (3,948) (2,996)
Future income
taxes 402 2,119 3,053 8,074
Other 415 320 931 885
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9,183 13,887 36,083 44,062
Change in non-cash
working capital
items (13,286) (10,758) 110 (7,392)
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(4,103) 3,129 36,193 36,670
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INVESTING ACTIVITIES
Business acquisition - (5,156) (4,769) (5,781)
Additions to
property, plant
and equipment (25,385) (6,129) (60,133) (33,284)
Change in cash
reserves 300 26 (1,241) (28)
Development
projects (2,649) (4,034) (8,686) (5,101)
Acquisition of
minority interest - - (968) -
Other (1,212) 249 (7,035) (1,467)
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(28,946) (15,044) (82,832) (45,661)
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FINANCING ACTIVITIES
Increase (decrease)
in bank loans
and advances (1,109) 448 13,217 448
Increase in
long-term debt 36,104 - 36,104 -
Payments on
long-term debt (9,795) (7,462) (20,751) (17,657)
Financing costs (2,328) - (2,547) -
Share redemption - (195) - (195)
Net proceeds from
share issuance - 11 - 1,716
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22,872 (7,198) 26,023 (15,688)
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TRANSLATION
ADJUSTMENT ON
CASH AND CASH
EQUIVALENTS (4,101) (79) (10,941) 4,195
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NET CHANGE IN
CASH AND CASH
EQUIVALENTS (14,278) (19,192) (31,557) (20,484)
CASH AND CASH
EQUIVALENTS -
BEGINNING OF
PERIOD 51,916 77,903 69,195 79,195
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CASH AND CASH
EQUIVALENTS -
END OF PERIOD 37,638 58,711 37,638 58,711
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ADDITIONAL
INFORMATION
CASH AND CASH
EQUIVALENTS
PAID FOR:
Interest 2,387 2,413 6,604 7,273
Income taxes 535 373 1,736 1,321
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Segmented information
The Corporation's power stations are grouped into four distinct segments: wind power, hydroelectric power, wood-residue thermal power and natural gas thermal power and are engaged mainly in 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 Corporation analyzes the performance of its operating segments based on the earnings before interest, taxes, depreciation and amortization ("EBITDA"). EBITDA is not a measure of performance under canadian generally accepted acounting principles; however, management uses this measure to assess the operating performance of its segments. Results for each segment are presented on the same basis as those of the Corporation. In the consolidated statement of earnings, EBITDA is represented by operating income before amortization.
The following table reconciles EBITDA with net earnings:
FOR THE THREE-MONTH FOR THE NINE-MONTH
PERIODS ENDED PERIODS ENDED
(in thousands of SEPTEMBER 30, SEPTEMBER 30,
dollars) (unaudited) 2009 2008 2009 2008
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(RESTATED) (RESTATED)
Net earnings 698 5,679 9,727 16,012
Non-controlling
interests 1 (5) 56 112
Income taxes 316 2,427 5,751 9,495
Financing costs 3,362 3,515 10,228 9,971
Net loss (gain)
on financial
instruments 398 (1,010) (6) 94
Foreign exchange
loss (gain) 236 (185) 202 (603)
Amortization 6,434 6,344 19,382 18,150
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EBITDA 11,445 16,765 45,340 53,231
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INFORMATION BY SEGMENT
FOR THE THREE-MONTH FOR THE NINE-MONTH
(in thousands of PERIODS ENDED PERIODS ENDED
dollars, other than SEPTEMBER 30, SEPTEMBER 30,
MWh) (unaudited) 2009 2008 2009 2008
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OUTPUT (MWh)
Wind power stations 39,758 40,665 155,677 163,818
Hydroelectric power
stations 27,554 21,522 104,286 97,224
Wood-residue thermal
power stations 297,851 354,560 852,253 937,694
Natural gas thermal
power station - - 22,642 22,569
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365,163 416,747 1,134,858 1,221,305
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REVENUES FROM
ENERGY SALES
Wind power stations 5,797 5,859 22,898 22,601
Hydroelectric power
stations 1,779 1,920 7,381 8,909
Wood-residue thermal
power stations 29,841 37,866 96,360 98,856
Natural gas thermal
power station 2,259 3,165 11,992 12,564
Corporate and
eliminations - 1 - 1
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39,676 48,811 138,631 142,931
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EBITDA
Wind power stations 4,247 4,361 17,704 17,909
Hydroelectric power
stations 301 847 3,795 6,272
Wood-residue thermal
power stations 10,685 13,558 30,636 31,424
Natural gas thermal
power station (126) (157) 1,240 960
Corporate and
eliminations (3,662) (1,844) (8,035) (3,334)
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11,445 16,765 45,340 53,231
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ADDITIONS TO
PROPERTY, PLANT
AND EQUIPMENT
Wind power stations 24,024 3,235 53,877 22,132
Hydroelectric power
stations 312 48 1,031 56
Wood-residue thermal
power stations 431 228 4,181 7,236
Natural gas thermal
power station - 53 28 69
Corporate and
eliminations 618 2,565 1,016 3,791
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25,385 6,129 60,133 33,284
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AS AT AS AT
(in thousands of SEPTEMBER 30, DECEMBER 31,
dollars) (unaudited) 2009 2008
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(RESTATED)
ASSETS
Wind power stations 268,438 242,944
Hydroelectric power stations 45,153 23,019
Wood-residue thermal power stations 152,002 183,881
Natural gas thermal power station 12,784 17,151
Corporate and eliminations 132,412 155,960
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610,789 622,955
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For further information: Ms. Sophie Paquet, Communications Advisor, Boralex Inc., (514) 985-1353, [email protected]
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