Boralex posts stronger financial performance in 2011

MONTREAL, Feb. 21, 2012 /CNW Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") ended fiscal 2011 with a sharp rise in earnings before interest, taxes, depreciation and amortization ("EBITDA"), totalling $100.8 million compared with $39.4 million in 2010. This rise resulted primarily from the positive impact of consolidating the operations of Boralex Power Income Fund (the "Fund") and growth in the wind and solar power segments, which contributed $38.2 million and $18.9 million respectively, in additional EBITDA.

"Boralex's savvy strategic development choices in 2011 delivered results once again. We're convinced that our asset performance combined with the recent transactions will underpin growth and profitability for years to come," said Boralex President and CEO Patrick Lemaire.

(in millions of Canadian dollars, except per share amounts and EBITDA margin)
		Three-month periods ended December 31			Twelve-month periods ended December 31
		2011	2010		2011	2010
Revenues from energy sales		56.5	53.7		194.0	102.8
EBITDA		30.3	28.1		100.8	39.4
EBITDA margin		53.6%	52.2%		51.9%	38.3%
Net earnings*		8.2	3.1		2.9	35.1
	Per share (basic and diluted)	$0.22	$0.08		$0.08	$0.93
Cash flows from operations		17.6	15.7		54.2	14.8
	Per share (basic and diluted)	0.47	0.42		1.44	0.39
*attributable to shareholders of Boralex

During fiscal 2011, revenues from energy sales amounted to $194.0 million, up from $102.8 million in 2010. This marked revenue growth stemmed mainly from assets acquired from the Fund at the end of 2010 being fully consolidated in Boralex's 2011 results and the full-year contribution of new wind farms commissioned in 2010, as well as the commissioning of the solar power station in June 2011.

Boralex recorded net earnings attributable to shareholders of $2.9 million in 2011, which when increased by $4.6 million compared with 2010, excluding a $36.8 million extraordinary gain recorded in 2010 on the acquisition of the Fund.

All three segments—wind, hydroelectric and solar—drove revenue, EBIDTA and EBITDA margin growth for the Corporation in 2011. Boralex generated significantly improved results in its wind power segment in 2011, with revenue and EBITDA rising over 45%. In the hydroelectric segment, revenues and EBITDA were up roughly 115%.

For the three-month period ended December 31, 2011, revenues from energy sales and EBITDA totalled $56.5 million and $30.3 million, respectively, up from $53.7 million and $28.1 million, for the same quarter of 2010. These improvements resulted from the wind power segment's full contribution and the fact that the quarter saw more favourable weather conditions for our French wind farms than in same period of 2010.

In the fourth quarter of 2011, Boralex sold its U.S. wood-residue power stations—with an installed capacity of 186 MW—for a consideration of US$86.8 million. This transaction was in line with the strategic direction adopted by Boralex. The Corporation opted to focus its operations and development initiatives primarily on acquiring and operating renewable energy assets covered by long-term power sales contracts with indexed pricing. These assets now account for 96% of the Corporation's portfolio.

Note that the sale of the Dolbeau thermal power station in the last quarter of 2011 triggered a pre-tax impairment reversal of $5.0 million.

With approximately $160 million in cash resources at the end of 2011, Boralex has sufficient funds to develop the projects identified in its three-year growth strategy.

About Boralex
Boralex is a power producer whose core business dedicated to the development and the operation of renewable energy power stations. Currently, the Corporation operates an asset base with an installed capacity of nearly 500 MW in Canada, the Northeastern United States and France. Boralex is also committed under power development projects, both independently and with European and Canadian partners, to add approximately 400 MW of power. 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 more recently, 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.

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 general impact of economic conditions, raw material price increases and availability, currency fluctuations, volatility in electricity selling prices, the Corporation's financing capacity, adverse changes in general market conditions and regulations affecting the industry, as well as other factors listed in the Company'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.

The summarized financial statements included in this press release also contain certain non-GAAP measures. To assess the performance of its assets and reporting segments, the Corporation uses EBITDA, EBITDA margin, cash flows from operations and cash flows from operations per share as performance measures, as defined in the accompanying financial statements. These non-GAAP measures do not have a standardized meaning prescribed under IFRS. As a result, these measures may not be comparable to similarly named measures used by other companies.

Consolidated Statements of Financial Position

	As at December 31,	As at December 31,	As at January 1,
(in thousands of Canadian dollars) (unaudited)	2011	2010	2010
ASSETS
Cash and cash equivalents	144,703	92,650	37,821
Restricted cash	18,288	15,924	-
Trade and other receivables	50,500	60,420	39,632
Inventories	3,573	9,179	8,726
Other current financial assets	-	769	-
Available-for-sale financial asset	2,208	23,251	-
Prepaid expenses	2,137	2,516	2,537
CURRENT ASSETS	221,409	204,709	88,716
Property, plant and equipment	643,047	738,884	412,707
Energy sales contracts	97,705	103,994	49,023
Water rights	111,844	113,015	4,146
Goodwill	38,063	38,063	-
Other intangible assets	5,285	15,432	8,363
Investment in the Fund	-	-	45,729
Interest in the Joint Venture	45,266	-	-
Other non-current financial assets	-	-	7,297
Other non-current assets	14,236	31,410	36,815
NON-CURRENT ASSETS	955,446	1,040,798	564,080
TOTAL ASSETS	1,176,855	1,245,507	652,796
LIABILITIES
Bank loans and overdraft	-	195	12,291
Trade and other payables	34,209	59,558	31,798
Current portion of debt	26,659	34,033	24,273
Current income tax liability	10,776	3,209	283
Other current financial liabilities	29,757	183	-
CURRENT LIABILITIES	101,401	97,178	68,645
Non-current debt	479,525	479,546	206,116
Convertible debentures	223,347	220,824	-
Deferred income tax liability	26,031	66,455	33,181
Other non-current financial liabilities	14,273	10,834	7,645
Other non-current liabilities	3,400	2,981	-
NON-CURRENT LIABILITIES	746,576	780,640	246,942
TOTAL LIABILITIES	847,977	877,818	315,587
EQUITY
Equity attributable to shareholders	321,764	359,357	330,178
Non-controlling interests	7,114	8,332	7,031
TOTAL EQUITY	328,878	367,689	337,209
TOTAL LIABILITIES AND EQUITY	1,176,855	1,245,507	652,796

Consolidated Statements of Earnings

		Three-month periods ended December 31,		Twelve-month periods ended December 31,
(in thousands of Canadian dollars, except per share amounts) (unaudited)		2011	2010	2011	2010
REVENUES
Revenues from energy sales		56,492	53,733	194,025	102,812
Management revenues from the Fund		-	-	-	4,437
Other income		167	119	680	718
		56,659	53,852	194,705	107,967
COSTS AND OTHER EXPENSES
Operating costs		21,437	21,288	73,038	42,171
Administrative		3,972	3,874	17,238	15,026
Development		799	626	3,523	4,213
Management and operation of the Fund		-	-	-	3,995
Amortization		14,583	13,228	57,833	31,383
Impairment loss (reversal) on property, plant and equipment		(5,000)	-	1,503	-
Impairment of goodwill		-	23,158	-	23,158
Net gain on deemed disposal of investment in the Fund		-	948	-	(24,744)
Other gains		-	-	(2,959)	(774)
		35,791	63,122	150,176	94,428
OPERATING INCOME		20,868	(9,270)	44,529	13,539
Financing costs		12,639	10,977	49,664	23,850
Foreign exchange loss (gain)		2,386	767	(961)	701
Net loss on financial instruments		498	369	972	241
LOSS BEFORE THE FOLLOWING ITEMS		5,345	(21,383)	(5,146)	(11,253)
Share in earnings of the Fund		-	-	-	(3,148)
Share in earnings of the Joint Venture		(150)	-	(150)	-
Income taxes (recovery)		1,277	(24,639)	(2,311)	(38,016)
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS		3,918	3,256	(2,985)	23,615
Net earnings from discontinued operations		4,651	302	5,489	11,658
NET EARNINGS		8,569	3,558	2,504	35,273
NET EARNINGS ATTRIBUTABLE TO:
	Shareholders of Boralex	8,187	3,080	2,883	35,072
	Non-controlling interests	382	478	(379)	201
NET EARNINGS		8,569	3,558	2,504	35,273
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX:
	Continuing operations	3,536	2,778	(2,606)	23,414
	Discontinued operations	4,651	302	5,489	11,658
		8,187	3,080	2,883	35,072
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX:
	Continuing operations	$0.10	$0.07	$(0.07)	$0.62
	Discontinued operations	$0.12	0.01	$0.15	$0.31
		$0.22	$0.08	$0.08	$0.93

Consolidated Statements of Comprehensive Income (Loss)

		Three-month periods ended December 31,		Twelve-month periods ended December 31,
(in thousands of Canadian dollars) (unaudited)		2011	2010	2011	2010
NET EARNINGS		8,569	3,558	2,504	35,273
OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments
	Unrealized foreign exchange gain (loss) on translation of financial statements of self-sustaining foreign operations	(4,849)	(8,990)	4,996	(15,543)
	Taxes	259	(216)	-	(179)
Cash flow hedges
	Change in fair value of financial instruments	(14,045)	3,925	(53,948)	(14,470)
	Hedging items realized and recognized in net earnings	2,222	969	6,040	2,884
	Hedging items realized and recognized in statement of financial position	-	804	198	5,652
	Taxes	2,397	(1,898)	13,405	1,831
Cash flow hedges - Joint Venture
	Change in fair value of financial instruments	(13,461)	-	(13,461)	-
	Taxes	3,579	-	3,579	-
Available-for-sale financial asset
	Change in fair value of an available-for-sale financial asset	(131)	(727)	(278)	(727)
	Items realized and recognized in net earnings	-	-	(624)	-
Discontinued operations		99	(1,904)	(2,021)	(2,998)
Total other comprehensive loss		(23,930)	(8,037)	(42,114)	(23,550)
COMPREHENSIVE INCOME (LOSS)		(15,361)	(4,479)	(39,610)	11,723
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
	Shareholders of Boralex	(14,978)	(3,743)	(38,392)	12,711
	Non-controlling interests	(383)	(736)	(1,218)	(988)
COMPREHENSIVE INCOME (LOSS)		(15,361)	(4,479)	(39,610)	11,723
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX:
	Continuing operations	(19,728)	(2,141)	(41,860)	4,051
	Discontinued operations	4,750	(1,602)	3,468	8,660
		(14,978)	(3,743)	(38,392)	12,711

Consolidated Statements of Changes in Equity

								2011
	Equity attributable to shareholders
(in thousands of Canadian dollars) (unaudited)	Capital stock	Equity component of convertible debentures	Contributed surplus	Retained earnings	Other comprehensive loss	Total	Non-controlling interests	Total equity
Balance as at January 1, 2011	222,853	14,488	5,028	141,693	(24,705)	359,357	8,332	367,689
Net earnings (loss)	-	-	-	2,883	-	2,883	(379)	2,504
Other comprehensive loss	-	-	-	-	(41,275)	(41,275)	(839)	(42,114)
Comprehensive income (loss)	-	-	-	2,883	(41,275)	(38,392)	(1,218)	(39,610)
Conversion of convertible debentures	258	-	-	-	-	258	-	258
Share repurchase	(353)	-	-	(75)	-	(428)	-	(428)
Stock option expense	-	-	1,078	-	-	1,078	-	1,078
Other	-	(109)	-	-	-	(109)	-	(109)
Balance as at December 31, 2011	222,758	14,379	6,106	144,501	(65,980)	321,764	7,114	328,878

								2010
	Equity attributable to  shareholders
(in thousands of Canadian dollars) (unaudited)	Capital stock	Equity component of convertible debentures	Contributed surplus	Retained earnings	Other comprehensive loss	Total	Non-controlling interests	Total equity
Balance as at January 1, 2010	222,694	-	4,290	105,538	(2,344)	330,178	7,031	337,209
Net earnings	-	-	-	35,072	-	35,072	201	35,273
Other comprehensive loss	-	-	-	-	(22,361)	(22,361)	(1,189)	(23,550)
Comprehensive income (loss)	-	-	-	35,072	(22,361)	12,711	(988)	11,723
Conversion of convertible debentures	26	-	-	-	-	26	-	26
Options exercised	133	-	-	-	-	133	-	133
Excess of purchase price paid for acquisition of non-controlling interests	-	-	-	(2,332)	-	(2,332)	42	(2,290)
Excess of proceeds from partial sale of a subsidiary	-	-	-	3,415	-	3,415	-	3,415
Stock option expense	-	-	738	-	-	738	-	738
Issuance of convertible debentures and imputed interest	-	14,488	-	-	-	14,488	-	14,488
Contribution of non-controlling interest	-	-	-	-	-	-	2,247	2,247
Balance as at December 31, 2010	222,853	14,488	5,028	141,693	(24,705)	359,357	8,332	367,689

Consolidated Statements of Cash Flows

		Three-month periods ended December 31,		Twelve-month periods ended December 31,
(in thousands of Canadian dollars) (unaudited)		2011	2010	2011	2010
Net earnings attributable to shareholders of Boralex		8,187	3,080	2,883	35,072
Less: Net earnings from discontinued operations		4,651	302	5,489	11,658
Net earnings (loss) from continuing operations		3,536	2,778	(2,606)	23,414
Distributions received from the Fund		-	-	-	4,475
Financing costs		12,639	10,977	49,664	23,850
Interest paid		(13,358)	(10,806)	(47,134)	(24,312)
Income tax recovery		1,277	(24,639)	(2,311)	(38,016)
Income taxes paid		(39)	11	(4,337)	(2,524)
Non-cash items in earnings (loss):
	Net loss on financial instruments	498	369	972	241
	Share in earnings of the Joint Venture	150	-	150	-
	Share in earnings of the Fund	-	-	-	3,148
	Amortization	14,583	13,228	57,833	31,383
	Impairment loss (reversal) on property, plant and equipment	(5,000)	-	1,503	-
	Impairment of goodwill	-	23,158	-	23,158
	Gain on sale of assets	-	-	(2,377)	(774)
	Gain on sale of assets to the Joint Venture	-	-	(582)	-
	Gain on deemed disposal of investment in the Fund	-	-	-	(30,874)
	Other	3,327	609	3,465	1,592
		17,613	15,685	54,240	14,761
Change in non-cash items related to operating activities		(13,082)	(650)	11,891	(613)
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES		4,531	15,035	66,131	14,148
Additions to property, plant and equipment		(5,517)	(48,517)	(34,419)	(183,948)
Change in restricted cash		(17,011)	19,098	(2,364)	(15,924)
Business acquisition - the Fund		-	-	-	(38,811)
Business acquisition - Other		-	-	(700)	(2,142)
Increase in interest in the Joint Venture		(42,573)	-	(52,949)	-
Proceeds from sale of a subsidiary		-	-	-	878
Change in reserve funds		8	-	(2)	883
Development projects		(439)	(1,316)	(1,620)	(2,046)
Proceeds from sale of asset		2,150	-	4,200	-
Other		(74)	37	436	35
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES		(63,456)	(30,698)	(87,418)	(241,075)
Decrease in bank loans and overdraft		6	195	(195)	(12,096)
Net increase in non-current debt		6,488	3,780	39,674	267,051
Repayments on non-current debt		(2,608)	(6,533)	(45,035)	(73,608)
Net issuance of convertible debentures		-	-	-	103,945
Redemption of financial instruments prior to maturity		(15,670)	-	(15,670)	-
Share repurchase		-	-	(428)	-
Net proceeds from share issuance		-	133	-	133
Distributions paid to unit holders		-	(1,565)	-	(1,565)
Repurchase of non-controlling interests - the Fund		-	(32,421)	-	(32,421)
Repurchase of non-controlling interests - Other		-	-	-	(1,751)
Increase in non-controlling interests		-	-	-	5,662
Other		(5)	-	(5)	-
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES		(11,789)	(36,411)	(21,659)	255,350
Cash from discontinued operations, including proceeds on disposal		83,709	5,835	94,770	30,679
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS		(1,360)	(1,843)	229	(4,273)
NET INCREASE IN CASH AND CASH EQUIVALENTS		11,635	(48,082)	52,053	54,829
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		133,068	140,732	92,650	37,821
CASH AND CASH EQUIVALENTS - END OF YEAR		144,703	92,650	144,703	92,650

Segmented Information

The Corporation's power stations are grouped into four distinct segments which represents the corporation segments—wind, hydroelectric, thermal and solar power station. The Corporation operates solely 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 same accounting rules are used for segmented information as apply to the consolidated accounts.

Following the sale of its five U.S. wood-residue thermal power stations, the Corporation redefined its operating segments. Previously, operations were grouped into five distinct segments. Wood-residue thermal power stations and natural gas thermal power stations have been combined in a single segment called Thermal Power Stations. The comparative data have been adjusted to reflect this change. In addition, the data related to discontinued operations have been excluded as they are reported on a separate line in the Consolidated Statement of Earnings.

The operating segments are presented according to the same criteria used to prepare the internal report submitted to the chief operating decision-maker, who allocates resources and assesses the performance do the operating segments. The chief operating decision-maker is considered to be the President and Chief Executive Officer, who assesses segment performance based on production of electricity, revenues from energy sales and EBITDA.

EBITDA does not have a standardized meaning prescribed 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, or as a measure of operating results, which are IFRS measures.

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

	Three-month periods ended December 31,		Twelve-month periods ended December 31,
	2011	2010	2011	2010
Net earnings attributable to shareholders of Boralex	8,187	3,080	2,883	35,072
Net earnings from discontinued operations	(4,651)	(302)	(5,489)	(11,658)
Non-controlling interests	382	478	(379)	201
Income taxes (recovery)	1,277	(24,639)	(2,311)	(38,016)
Net loss on financial instruments	498	369	972	241
Foreign exchange loss (gain)	2,386	767	(961)	701
Financing costs	12,639	10,977	49,664	23,850
Other gains	-	-	(2,959)	(774)
Net gain on deemed disposal of investment in the Fund	-	948	-	(24,744)
Impairment of goodwill	-	23,158	-	23,158
Impairment loss (reversal) on property, plant and equipment	(5,000)	-	1,503	-
Amortization	14,583	13,228	57,833	31,383
EBITDA	30,301	28,064	100,756	39,414

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, cash flows related to operating activities in the following table:

	Three-month periods ended December 31,		Twelve-month periods ended December 31,
	2011	2010	2011	2010
Net cash flows related to operating activities	4,531	15,035	66,131	14,148
Less:
Change in non cash items related to operating activities	(13,082)	(650)	11,891	(613)
CASH FLOWS FROM OPERATIONS	17,613	15,685	54,240	14,761

Information by Operating Segment

	Three-month periods ended December 31,		Twelve-month periods ended December 31,
	2011	2010	2011	2010
Power production (MWh)
Wind power stations	182,810	143,379	554,581	377,392
Hydroelectric power stations	196,522	220,380	703,612	328,290
Thermal power stations	114,225	132,312	469,835	170,529
Solar power station	1,017	-	3,227	-
	494,574	496,071	1,731,255	876,211
Revenues from energy sales
Wind power stations	22,461	17,479	67,255	45,924
Hydroelectric power stations	15,982	18,060	56,319	26,221
Thermal power stations	17,584	18,194	68,975	30,667
Solar power station	465	-	1,476	-
	56,492	53,733	194,025	102,812
EBITDA
Wind power stations	18,590	14,104	53,807	36,263
Hydroelectric power stations	11,386	14,401	41,623	18,929
Thermal power stations	4,100	4,019	20,638	6,132
Solar power station	399	-	1,330	-
Corporate and eliminations	(4,174)	(4,460)	(16,642)	(21,910)
	30,301	28,064	100,756	39,414
Additions to property, plant and equipment
Wind power stations	197	41,624	12,291	175,217
Hydroelectric power stations	2,479	104	3,718	2,354
Thermal power stations	284	1,756	3,765	1,766
Solar power station	1,864	4,636	13,409	5,141
Corporate and eliminations	693	397	1,236	(530)
	5,517	48,517	34,419	183,948

	As at December 31, 2011	As at December 31, 2010	As at January 1, 2010
Total assets
Wind power stations	528,521	531,424	360,226
Hydroelectric power stations	366,099	364,534	34,019
Thermal power stations	101,683	201,257	167,223
Solar power station	23,586	7,607	-
Corporate	156,966	140,685	91,328
	1,176,855	1,245,507	652,796
Total liabilities
Wind power stations	392,611	437,972	258,651
Hydroelectric power stations	143,439	139,922	29,499
Thermal power stations	29,581	26,476	15,778
Solar power station	21,043	3,286	-
Corporate	261,303	270,162	11,659
	847,977	877,818	315,587

Information by Geographic Segment

	Three-month periods ended December 31,		Twelve-month periods ended December 31,
	2011	2010	2011	2010
Power production (MWh)
Canada	231,018	241,853	901,853	356,025
United States	137,709	146,590	466,381	225,045
France	125,847	107,628	363,021	295,141
	494,574	496,071	1,731,255	876,211
Revenues from energy sales
Canada	26,844	25,184	102,404	38,590
United States	10,526	11,666	35,145	16,674
France	19,122	16,883	56,476	47,548
	56,492	53,733	194,025	102,812
EBITDA
Canada	11,383	9,484	43,494	4,914
United States	7,835	9,343	27,029	11,111
France	11,083	9,237	30,233	23,389
	30,301	28,064	100,756	39,414
Additions to property, plant and equipment
Canada	3,091	34,831	16,469	107,076
United States	167	2	669	731
France	2,259	13,684	17,281	76,141
	5,517	48,517	34,419	183,948

	As at December 31, 2011	As at December 31, 2010	As at January 1, 2010
Total assets
Canada	679,354	633,804	201,492
United States	209,003	301,639	181,125
France	288,498	310,064	270,179
	1,176,855	1,245,507	652,796
Non-current assets
Canada	543,319	529,727	188,370
United States	156,631	247,977	131,089
France	255,496	263,094	244,621
	955,446	1,040,798	564,080
Total liabilities
Canada	483,731	495,239	73,259
United States	122,827	125,869	32,956
France	241,419	256,710	209,372
	847,977	877,818	315,587

Media
Andréan Gagné
Communications Advisor
Boralex Inc.
514-985-1353
[email protected]

Investors
Marc Jasmin
Boralex Inc.
514-284-9868
[email protected]