Boralex: Significantly higher results for the second quarter

MONTREAL, Aug. 7, 2013 /CNW Telbec/ - Delivering on its growth strategy, Boralex Inc.  ("Boralex" or the "Corporation")(TSX: BLX) reported improved financial results for the second quarter of 2013, with a 23% increase in earnings before income taxes, interest and amortization ("EBITDA").

FINANCIAL HIGHLIGHTS

(In millions of dollars, except per share amounts and EBITDA margin)		Three-month periods ended June 30		Six-month periods ended June 30
		2013	2012	2013	2012
Revenues from energy sales		40.1	38.9	90.9	96.4
EBITDA		23.2	18.9	56.4	52.2
EBITDA margin (%)		57.9	48.6	62.0	54.1
Net earnings (loss)^(1)		(1.7)	(6.0)	2.3	(1.2)
	Per share (basic) ($)^(1)	(0.04)	(0.16)	0.06	(0.03)
Cash flows from operations^(2)		17.8	5.5	40.7	27.4
	Per share (basic) ($)^(2)	0.47	0.15	1.08	0.73

(1)	Attributable to shareholders of Boralex for continuing operations
(2)	Given that June 30, the scheduled date for payment of $8.3 million in interest on convertible debentures, fell on a Sunday before a statutory holiday, the payment was made on July 2, 2013. Adjusted cash flows from operations are thus $9.5 million.

The improvement in the Corporation's performance in the second quarter of 2013 resulted in large part from the contribution of the St-Patrick wind farm in France acquired in June 2012, as well as from better wind conditions in Canada and more favourable water flows in the U.S., which more than offset the impact of the shutdown of operations at the Kingsey Falls thermal power station. In the second quarter of 2013, these positive factors sparked improvements in the Corporation's production, revenues from energy sales, EBITDA and cash flows from operations⁽²⁾ of 9%, 3%, 23% and 73%, respectively, compared with the same period of 2012.

In the second quarter of 2013, Boralex closed US$90 million in long-term financing secured by two of its U.S. power stations which will allow the Corporation to repay a US$70.7 million existing loan facility and free up funds to support its development. This non-recourse financing will bear interest at an annual rate of 3.51% and will be amortized by semi-annual payments over a 12-year period.

A GROWING COMPANY: SEVERAL SITES UNDER CONSTRUCTION

The Corporation continues to develop several projects in Canada and France, which will significantly influence its asset profile in the next few years. "Construction of Phase I of the Seigneurie de Beaupré Wind Farms is still on schedule despite a one-week work shutdown caused by a general strike in Québec's construction industry last June," said Boralex President and CEO Patrick Lemaire. The first 272 MW will be commissioned in December 2013 followed by an additional 68 MW with the Phase II in December 2014. Elsewhere in Canada, construction is expected to begin on the Témiscouata I wind farm in the third quarter. Work is on schedule at the Jamie Creek hydroelectric site, which the Corporation expects to commission in early 2014.

In France, construction continues at the La Vallée and Vron wind farms, with commissioning still scheduled for late 2013. The Corporation is currently actively working at finalizing the financing for the Fortel-Bonnières and St-François projects.

As of June 30, 2013, Boralex can count on $128 million in available cash to fuel its growth.

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 almost 500 MW in Canada, the Northeastern United States and France. Boralex is also committed under power development projects, both independently and with Canadian and European partners, to add approximately 550 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.

Certain 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.

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, cash flows from operations, the ratio of net debt, adjusted EBITDA and adjusted net earnings, as performance measures. Management believes that these measures are financial indicators widely accepted by investors to assess the operational performance of a company and its ability to generate cash through operations. These non-IFRS measures are drawn primarily from the unaudited interim 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.

Consolidated Financial Statements
Consolidated Statements of Financial Position

	As at June 30,	As at December 31,
(in thousands of Canadian dollars) (unaudited)	2013	2012
ASSETS
Cash and cash equivalents	122,214	107,138
Restricted cash	6,107	5,063
Trade and other receivables	30,998	45,589
Inventories	4,631	4,404
Available-for-sale financial asset	—	3,009
Prepaid expenses	4,087	2,137
CURRENT ASSETS	168,037	167,340
Property, plant and equipment	733,978	689,024
Other intangible assets	262,113	253,115
Goodwill	49,246	48,663
Interest in the Joint Venture	72,822	58,994
Other non-current financial assets	320	—
Other non-current assets	12,402	12,735
NON-CURRENT ASSETS	1,130,881	1,062,531
TOTAL ASSETS	1,298,918	1,229,871
LIABILITIES
Trade and other payables	55,169	46,945
Current portion of debt	104,548	98,570
Current income tax liability	2,446	1,741
Other current financial liabilities	17,994	25,508
CURRENT LIABILITIES	180,157	172,764
Non-current debt	444,717	423,616
Convertible debentures	227,872	226,299
Deferred income tax liability	37,859	29,514
Other non-current financial liabilities	19,893	24,698
Other non-current liabilities	11,259	10,611
NON-CURRENT LIABILITIES	741,600	714,738
TOTAL LIABILITIES	921,757	887,502
EQUITY
Equity attributable to shareholders	351,628	319,868
Non-controlling shareholders	25,533	22,501
TOTAL EQUITY	377,161	342,369
TOTAL LIABILITIES AND EQUITY	1,298,918	1,229,871

Consolidated Statements of Earnings (Loss)

		Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars, except per share amounts) (unaudited)		2013	2012	2013	2012
REVENUES
Revenues from energy sales		40,141	38,905	90,877	96,356
Other income		437	171	752	322
		40,578	39,076	91,629	96,678
COSTS AND OTHER EXPENSES
Operating expenses		11,975	14,646	24,824	35,072
Administrative		3,639	3,746	7,236	6,951
Development		872	1,797	2,009	2,468
Amortization		13,213	13,954	26,714	27,890
Other gains		(48)	—	(82)	—
Impairment of property, plant and equipment and intangible assets		266	—	266	823
		29,917	34,143	60,967	73,204
OPERATING INCOME		10,661	4,933	30,662	23,474
Financing costs		12,595	12,096	25,019	24,199
Foreign exchange loss (gain)		(138)	10	(146)	131
Net loss (gain) on financial instruments		(876)	822	(673)	485
Share in earnings (loss) of the Joint Venture		(899)	(27)	(1,114)	17
EARNINGS (LOSS) BEFORE INCOME TAXES		(1,819)	(8,022)	5,348	(1,324)
Income tax expense (recovery)		(176)	(1,723)	2,554	38
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS		(1,643)	(6,299)	2,794	(1,362)
Net earnings from discontinued operations		622	134	783	2,459
NET EARNINGS (LOSS)		(1,021)	(6,165)	3,577	1,097
NET EARNINGS (LOSS) ATTRIBUTABLE TO:
	Shareholders of Boralex	(1,063)	(5,901)	3,105	1,248
	Non-controlling shareholders	42	(264)	472	(151)
NET EARNINGS (LOSS)		(1,021)	(6,165)	3,577	1,097
NET EARNINGS (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX
	Continuing operations	(1,685)	(6,035)	2,322	(1,211)
	Discontinued operations	622	134	783	2,459
		(1,063)	(5,901)	3,105	1,248
NET EARNINGS (LOSS) PER SHARE (BASIC AND DILUTED) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX
	Continuing operations	($0.04)	($0.16)	$0.06	($0.03)
	Discontinued operations	$0.02	—	$0.02	$0.06
		($0.02)	($0.16)	$0.08	$0.03

Consolidated Statements of Comprehensive Income (Loss)

		Three-month periods ended June 30		Six-month period ended June 30
(in thousands of Canadian dollars) (unaudited)		2013	2012	2013	2012
NET EARNINGS (LOSS)		(1,021)	(6,165)	3,577	1,097
Other comprehensive income (loss) to be subsequently reclassified to net earnings when certain conditions are met
Translation adjustments:
	Unrealized foreign exchange gain (loss) on translation of financial statements of self-sustaining foreign operations	8,652	334	9,633	(1,051)
Cash flow hedges:
	Change in fair value of financial instruments	8,792	(7,294)	9,049	(8,842)
	Hedging items realized and recognized in net earnings (loss)	1,927	3,687	3,778	7,826
	Taxes	(3,155)	985	(3,805)	572
Cash flow hedges - Joint Venture:
	Change in fair value of financial instruments	15,555	(11,112)	14,942	(3,350)
	Taxes	(3,948)	2,955	(3,869)	891
Available-for-sale financial asset:
	Change in fair value of an available-for-sale financial asset	11	(387)	800	(451)
	Items realized and recognized in net earnings (loss)	(54)	—	(91)	—
Total other comprehensive income (loss)		27,780	(10,832)	30,437	(4,405)
COMPREHENSIVE INCOME (LOSS)		26,759	(16,997)	34,014	(3,308)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
	Shareholders of Boralex	24,570	(16,194)	31,308	(2,593)
	Non-controlling shareholders	2,189	(803)	2,706	(715)
COMPREHENSIVE INCOME (LOSS)		26,759	(16,997)	34,014	(3,308)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF BORALEX
	Continuing operations	23,948	(16,329)	30,525	(5,052)
	Discontinued operations	622	135	783	2,459
		24,570	(16,194)	31,308	(2,593)

Consolidated Statements of Changes in Equity

							Six-month period ended June 30
								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	—	—	—	3,105	—	3,105	472	3,577
Other comprehensive income	—	—	—	—	28,203	28,203	2,234	30,437
COMPREHENSIVE INCOME	—	—	—	3,105	28,203	31,308	2,706	34,014
Conversion of convertible debentures	56	—	—	—	—	56	—	56
Exercise of options	30	—	—	—	—	30	—	30
Stock option expense	—	—	366	—	—	366	—	366
Contribution of non-controlling shareholders	—	—	—	—	—	—	326	326
BALANCE AS AT JUNE 30, 2013	222,956	14,379	7,311	147,597	(40,615)	351,628	25,533	377,161
							Six-month period ended June 30
								2012
	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 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 earnings (loss)	—	—	—	1,248	—	1,248	(151)	1,097
Other comprehensive loss	—	—	—	—	(3,841)	(3,841)	(564)	(4,405)
COMPREHENSIVE INCOME (LOSS)	—	—	—	1,248	(3,841)	(2,593)	(715)	(3,308)
Conversion of convertible debentures	45	—	—	—	—	45	—	45
Share repurchases	(5)	—	—	(2)	—	(7)	—	(7)
Stock option expense	—	—	313	—	—	313	—	313
Excess of proceeds from partial sale of a subsidiary	—	—	—	4,946	—	4,946	(4,946)	—
Contribution of non-controlling shareholders	—	—	—	—	—	—	18,124	18,124
BALANCE AS AT JUNE 30, 2012	222,798	14,379	6,419	150,693	(69,821)	324,468	19,577	344,045

Consolidated Statements of Cash Flows

		Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)		2013	2012	2013	2012
Net earnings (loss) attributable to shareholders of Boralex		(1,063)	(5,901)	3,105	1,248
Less: Net earnings from discontinued operations		622	134	783	2,459
Net earnings (loss) from continuing operations attributable to shareholders of Boralex		(1,685)	(6,035)	2,322	(1,211)
Financing costs		12,595	12,096	25,019	24,199
Interest paid		(6,240)	(12,973)	(16,253)	(23,327)
Income tax expense (recovery)		(176)	(1,723)	2,554	38
Income taxes paid		(695)	(768)	(1,452)	(2,464)
Non-cash items in earnings (loss):
	Net loss (gain) on financial instruments	(876)	822	(673)	485
	Share in loss (earnings) of the Joint Venture	899	27	1,114	(17)
	Amortization	13,213	13,954	26,714	27,890
	Impairment of property, plant and equipment and intangible assets	266	—	266	823
	Other gains	(48)	—	(82)	—
	Other	522	107	1,200	940
		17,775	5,507	40,729	27,356
Change in non-cash items related to operating activities		13,979	7,731	13,472	18,956
NET CASH FLOWS RELATED TO OPERATING ACTIVITIES		31,754	13,238	54,201	46,312
Business acquisitions		—	(39,080)	—	(39,080)
Additions to property, plant and equipment		(40,312)	(1,048)	(48,693)	(2,543)
Additions to other intangible assets		—	(1,560)	—	(1,560)
Change in restricted cash		(289)	10,868	(1,044)	11,628
Increase in interest in the Joint Venture		—	(9,425)	—	(11,283)
Development projects		(7,913)	(910)	(8,890)	(1,656)
Proceeds from sale of assets		—	8,763	—	8,763
Other		—	292	(19)	96
NET CASH FLOWS RELATED TO INVESTING ACTIVITIES		(48,514)	(32,100)	(58,646)	(35,635)
Increase in non-current debt		24,351	—	29,115	—
Repayments on non-current debt		(4,716)	(2,591)	(13,983)	(14,667)
Contribution of non-controlling shareholders		—	18,124	326	18,124
Other		30	(60)	30	(48)
NET CASH FLOWS RELATED TO FINANCING ACTIVITIES		19,665	15,473	15,488	3,409
Cash from discontinued operations		968	(1,232)	1,066	(5,479)
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS		2,604	318	2,967	(196)
NET CHANGE IN CASH AND CASH EQUIVALENTS		6,477	(4,303)	15,076	8,411
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		115,737	157,417	107,138	144,703
CASH AND CASH EQUIVALENTS - END OF PERIOD		122,214	153,114	122,214	153,114

Segmented Information

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 the cash flow from operations.

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, or as a measure of operating results, which are IFRS measures.

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

	Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)	2013	2012	2013	2012
Net earnings (loss) attributable to shareholders of Boralex	(1,063)	(5,901)	3,105	1,248
Net earnings from discontinued operations	(622)	(134)	(783)	(2,459)
Non-controlling shareholders	42	(264)	472	(151)
Income tax expense (recovery)	(176)	(1,723)	2,554	38
Net loss (gain) on financial instruments	(876)	822	(673)	485
Foreign exchange loss (gain)	(138)	10	(146)	131
Financing costs	12,595	12,096	25,019	24,199
Impairment of property, plant and equipment and intangible assets	266	—	266	823
Other gains	(48)	—	(82)	—
Amortization	13,213	13,954	26,714	27,890
EBITDA	23,193	18,860	56,446	52,204

Cash flows from operations
Cash flows from operations are equal to net cash flows related to operating activities before 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 table:

	Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)	2013	2012	2013	2012
Net cash flows related to operating activities	31,754	13,238	54,201	46,312
Change in non-cash items related to operating activities	13,979	7,731	13,472	18,956
CASH FLOWS FROM OPERATIONS *	17,775	5,507	40,729	27,356
* As the scheduled payment date of the $8,258,000 interest on the convertible debentures was on June 30, a Sunday, the payment was made on the following business day on July 2, 2013

Adjusted EBITDA
The following two tables reconcile wind segment EBITDA and consolidated EBITDA as reported in the financial statements with adjusted EBITDA:

		Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)		2013	2012	2013	2012
EBITDA - Wind power segment		15,569	13,082	35,444	30,059
Specific item:
	Non-EBITDA items included in the Share in earnings (loss) of the Joint Venture	870	2	1,029	(100)
ADJUSTED EBITDA - WIND POWER SEGMENT		16,439	13,084	36,473	29,959
		Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)		2013	2012	2013	2012
EBITDA - Consolidated		23,193	18,860	56,446	52,204
Specific items:
	Non-EBITDA items included in the Share in earnings (loss) of the Joint Venture	870	2	1,029	(100)
	Professional fees incurred in connection with acquisitions in France and Canada	122	832	129	832
ADJUSTED EBITDA - CONSOLIDATED		24,185	19,694	57,604	52,936

Adjusted net earnings (loss)
The following table reconciles net earnings (loss) attributable to shareholders of Boralex as reported in the financial statements with adjusted net earnings (loss):

		Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars) (unaudited)		2013	2012	2013	2012
Net earnings (loss) attributable to shareholders of Boralex		(1,063)	(5,901)	3,105	1,248
Net earnings from discontinued operations		(622)	(134)	(783)	(2,459)
Specific items*:
	Impairment of property, plant and equipment and intangible assets	195	—	195	492
	Professional fees incurred in connection with acquisitions in France and Canada	89	557	95	557
ADJUSTED NET EARNINGS (LOSS) - CONSOLIDATED		(1,401)	(5,478)	2,612	(162)
* Net of income taxes

Information by Operating Segment

	Three-month periods ended June 30		Six-month periods ended June 30
(in thousands of Canadian dollars, except amounts in MWh) (unaudited)	2013	2012	2013	2012
Power production (MWh)
Wind power stations	166,992	138,836	358,020	311,241
Hydroelectric power stations	197,923	158,874	346,396	321,969
Thermal power stations	7,191	41,981	78,070	160,304
Solar power station	1,788	1,940	2,867	3,269
	373,894	341,631	785,353	796,783
Revenues from energy sales
Wind power stations	20,384	16,345	43,982	36,991
Hydroelectric power stations	15,691	12,445	29,804	26,431
Thermal power stations	3,268	9,285	15,814	31,528
Solar power station	798	830	1,277	1,406
	40,141	38,905	90,877	96,356
EBITDA
Wind power stations	15,569	13,082	35,444	30,059
Hydroelectric power stations	12,532	9,056	23,816	19,701
Thermal power stations	(1,070)	1,154	3,598	9,549
Solar power station	706	723	1,088	1,218
Corporate and eliminations	(4,544)	(5,155)	(7,500)	(8,323)
	23,193	18,860	56,446	52,204
Additions to property, plant and equipment
Wind power stations	28,176	273	32,635	620
Hydroelectric power stations	10,964	348	13,169	537
Thermal power stations	226	—	273	66
Solar power station	—	3	527	696
Corporate and eliminations	946	424	2,089	624
	40,312	1,048	48,693	2,543
			As at June 30,	As at December 31,
(in thousand of Canadian dollars) (unaudited)			2013	2012
Total assets
Wind power stations			706,720	646,065
Hydroelectric power stations			442,681	420,553
Thermal power stations			46,618	79,093
Solar power station			21,343	20,768
Corporate			81,556	63,392
			1,298,918	1,229,871
Total liabilities
Wind power stations			484,756	464,977
Hydroelectric power stations			148,841	147,795
Thermal power stations			10,066	11,487
Solar power station			16,632	16,438
Corporate			261,462	246,805
			921,757	887,502

Information by Geographic Segment

	Three-month periods ended June 30		Six-month period ended June 30
(in thousands of Canadian dollars, except amounts in MWh) (unaudited)	2013	2012	2013	2012
Power production (MWh)
Canada	133,726	165,103	310,930	392,055
United States	123,443	85,996	222,011	199,469
France	116,725	90,532	252,412	205,259
	373,894	341,631	785,353	796,783
Revenues from energy sales
Canada	14,074	19,297	35,915	50,468
United States	9,493	6,497	17,833	14,900
France	16,574	13,111	37,129	30,988
	40,141	38,905	90,877	96,356
EBITDA
Canada	6,232	8,123	20,861	25,450
United States	7,556	4,605	14,288	11,252
France	9,405	6,132	21,297	15,502
	23,193	18,860	56,446	52,204
Additions to property, plant and equipment
Canada	12,158	761	15,486	1,126
United States	167	—	210	85
France	27,987	287	32,997	1,332
	40,312	1,048	48,693	2,543
			As at June 30,	As at December 31,
(in thousand of Canadian dollars) (unaudited)			2013	2012
Total assets
Canada			665,121	651,146
United States			195,494	178,329
France			438,303	400,396
			1,298,918	1,229,871
Non-current assets, excluding interest in the Joint Venture
Canada			512,302	498,019
United States			149,455	145,604
France			396,302	359,914
			1,058,059	1,003,537
Total liabilities
Canada			499,483	497,855
United States			100,006	94,461
France			322,268	295,186
			921,757	887,502

Subsequent Event

Seigneurie de Beaupré 4

On July 5, 2013, Boralex transferred assets amounting to $6,382,000 to Seigneurie de Beaupré 4 Wind Farm GP, located in Canada, as a capital contribution in exchange for partnership units.

In May 2013, in connection with the Seigneurie de Beaupré 4 wind farm project, Boralex entered into a partnership agreement with a subsidiary of Gaz Métro L.P. and created the partnership of which each party owns 50%. Under the agreement, all expenditures are made jointly and all earnings, costs, expenses, liabilities, obligations and risks resulting from the partnership are shared jointly but not severally. Boralex's interest in the partnership is accounted for using the equity method. The year-end date is December 31.

Vron

In August 2013, the Corporation closed long-term project financing for the Vron wind farm project in France. Disbursements will be made in August 2013. The loan, which is secured by the assets of this wind farm, comprises four tranches totalling €14,150,000 ($19 373 000). The loan will be amortized in quarterly payments over a 15-year period. The Corporation has used interest rate swaps to set a fixed rate of 4% for the total debt over the loan term, thereby reducing its exposure to rate fluctuations.

Jamie Creek

In August 2013, the Corporation closed long-term project financing for the Jamie Creek hydroelectric power station project in Canada. Disbursements will be made in August 2013. The loan, without recourse to the Corporation, is secured by the assets of this hydroelectric power station and totals $55,250,000. The loan will enjoy a nine-year grace period for repayment of principal and be amortized thereafter, in semi-annual payments, over a 31-year period. The interest rate on the financing is fixed at 5.42% over the loan term.

SOURCE: BORALEX INC.

Media
Patricia Lemaire
Director, Public Affairs and Communications
Boralex Inc.
514-985-1353
[email protected]

Investors 
Marc Jasmin
Director, Investor Relations
Boralex Inc.
514-284-9868
[email protected]