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Algonquin Power & Utilities Corp.
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Exhibit
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Description
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99.1
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Earnings Press Release for the quarter and year-ended December 31, 2019.
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99.2
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Common Share Dividend Press Release.
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99.3
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Preferred Share Dividend Press Release.
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ALGONQUIN POWER & UTILITIES CORP.
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(registrant)
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Date: February 27, 2020
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By: /s/ David Bronicheski
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Name: David Bronicheski
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Title: Chief Financial Officer
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•
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Annual revenue of $1,624.9 million, a decrease of 1%;
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•
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Annual Adjusted EBITDA1 of $838.6 million, an increase of 4%;
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•
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Annual Adjusted net earnings1 of $321.3 million, an increase of 3%;
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•
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Annual Adjusted net earnings1 per share of $0.63, a decrease of 5%;
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•
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Fourth quarter revenue of $439.7 million, an increase of 4%;
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•
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Fourth quarter Adjusted EBITDA1 of $231.5 million, an increase of 16%;
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•
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Fourth quarter Adjusted net earnings1 of $103.6 million, an increase of 47%; and,
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•
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Fourth quarter Adjusted net earnings1 per share of $0.20, an increase of 43%, in each case on a year-over-year basis.
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In USD millions or on a per share basis unless otherwise noted
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Quarter ended December 31
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Year ended December 31
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2019
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2018
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Variance
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2019
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2018
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Variance
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Revenue
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$439.7
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$421.9
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4%
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$1,624.9
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$1,648.5
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(1)%
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Net earnings attributable to shareholders
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$172.1
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$44.0
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291%
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$530.9
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$185.0
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187%
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Per share
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$0.34
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$0.09
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278%
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$1.05
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$0.38
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176%
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Adjusted net earnings1
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$103.6
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$70.5
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47%
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$321.3
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$312.2
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3%
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Per share
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$0.20
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$0.14
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43%
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$0.63
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$0.66
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(5)%
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Adjusted EBITDA1
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$231.5
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$198.9
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16%
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$838.6
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$804.4
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4%
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Adjusted Funds from Operations1
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$144.1
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$132.5
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9%
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$566.2
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$554.1
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2%
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Dividend per share
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$0.1410
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$0.1282
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10%
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$0.5512
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$0.5011
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10%
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1.
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Please refer to Non-GAAP Financial Measures and Use of Non-GAAP Financial Measures at the end of this document for further details.
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•
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Definitive Agreement to acquire Bermuda Electric Light Company - On June 3, 2019, APUC announced it had agreed to acquire the Ascendant Group Limited ("Ascendant") for a purchase price of approximately $365.0 million. Ascendant, through its major subsidiary Bermuda Electric Light Company, is the sole electric utility providing regulated electrical generation, transmission and distribution services to approximately 63,000 residents and businesses in Bermuda. Approval of Ascendant's common shareholders has been received and the closing of the transaction is expected to occur in 2020 subject to customary closing conditions.
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Definitive Agreement to Acquire New York American Water - On November 20, 2019, APUC announced that it entered into a stock purchase agreement with American Water Works Company, Inc. to purchase its regulated operations in the State of New York ("New York American Water") for a purchase price of $608.0 million, subject to customary adjustments. New York American Water is a regulated water and wastewater utility serving over 125,000 customer connections across seven counties in southeastern New York. Operations include approximately 1,270 miles of water mains and distribution lines with 98% of customers located in Nassau County on Long Island. The transaction remains subject to regulatory approval and other typical closing conditions and is expected to close sometime in 2021.
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Acquisition of New Brunswick Gas - On October 1, 2019, APUC completed the acquisition of the New Brunswick Gas System (“New Brunswick Gas”) for approximately C$339.0 million. New Brunswick Gas is a regulated utility that provides natural gas to approximately 12,000 customers in 12 communities across New Brunswick, and operates approximately 1,200 km of natural gas distribution pipeline.
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Acquisition of St. Lawrence Gas - On November 1, 2019, the Regulated Services Group completed the acquisition of the St. Lawrence Gas System (“St. Lawrence Gas”) for approximately $61.8 million. St. Lawrence Gas is a regulated utility that provides natural gas to approximately 17,000 customers in the state of New York and operates approximately 1,100 km of natural gas distribution pipeline.
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Significant Milestones Achieved on Mid-West Wind Development Project - In June 2019, the Regulated Services Group received certificates of convenience and necessity ("CC&N") to acquire, once completed, three wind farms generating up to 600 MW of wind energy located in Missouri and Kansas. Receipt of the CC&N allows construction to commence on the three wind generation sites. Construction of two of the wind farms began in the fourth quarter of 2019 and construction on the third wind farm began in the first quarter of 2020.
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Significant Progress on Renewable Energy Projects - In 2019, the Renewable Energy Group achieved significant milestones in the advancement of several renewable energy projects including the Maverick Creek Wind Project located in Texas, Sugar Creek Wind Project located in Illinois, Great Bay Solar Project located in Maryland, and Altavista Solar Project2 located in Virginia.
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2.
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Power from the project will be sold, in part, to Facebook Operations, LLC pursuant to a power purchase agreement.
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Environmental, Social and Governance Leadership - In November 2019, APUC reported on its environmental, social and governance leadership and was recognized as one of the most sustainable companies in the world. Further, APUC’s Renewable Energy Group in 2019 issued its inaugural “green bonds”, an offering of C$300.0 million senior unsecured debentures with a maturity date of January 29, 2029.
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Date:
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February 28, 2020
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10:00 a.m. ET
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Dial-in Details:
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Toll Free Canada/US
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1-800-319-4610
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Toronto Local
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416-915-3239
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Please ask to join the Algonquin Power & Utilities Corp. conference call
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Presentation Access:
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http://services.choruscall.ca/links/algonquinpower20200228.html
Presentation also available at: www.algonquinpowerandutilities.com
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Call Replay:
(available until March 13, 2020)
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Toll Free Canada/US
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1-855-669-9658
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Vancouver Local
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1-604-674-8052
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Access Code
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4049
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Three Months Ended December 31
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Twelve Months Ended December 31
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(all dollar amounts in $ millions)
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2019
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2018
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2019
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2018
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Net earnings attributable to shareholders
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$
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172.1
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$
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44.0
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$
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530.9
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$
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185.0
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Add (deduct):
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Net earnings attributable to the non-controlling interest, exclusive of HLBV1
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(3.7
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)
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3.4
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19.1
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4.8
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Income tax expense
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12.5
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2.8
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70.1
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53.4
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Interest expense on long-term debt and others
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47.4
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40.3
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181.5
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152.1
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Other losses
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6.2
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2.3
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15.1
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2.7
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Acquisition-related costs
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6.4
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(8.9
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11.6
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0.7
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Pension and post-employment non-service costs
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8.4
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3.4
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17.3
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5.0
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Change in value of investments carried at fair value2
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(98.1
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)
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46.0
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(278.1
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138.0
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Costs related to tax equity financing
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—
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1.3
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—
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1.3
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Loss (gain) on derivative financial instruments
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(0.5
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(0.3
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(16.1
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0.6
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Realized (loss) gain on energy derivative contracts
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—
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0.1
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(0.2
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0.1
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Loss (gain) on foreign exchange
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3.1
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0.7
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3.1
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(0.1
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Depreciation and amortization
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77.7
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63.8
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284.3
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260.8
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Adjusted EBITDA
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$
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231.5
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$
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198.9
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$
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838.6
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$
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804.4
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1
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HLBV represents the value of net tax attributes earned during the period primarily from electricity generated by certain U.S. wind power and U.S. solar generation facilities. HLBV earned in the three and twelve months ended December 31, 2019 amounted to $16.0 million and $65.0 million as compared to $13.8 million and $110.7 million during the same period in 2018. In the first quarter of 2018 a one-time acceleration of HLBV income in the amount of $55.9 million was recorded as a result of U.S. Tax Reform. Excluding the one-time acceleration of HLBV due to U.S. Tax Reform, Adjusted EBITDA increased by $90.1 million year over year.
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2
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See Note 8 in APUC's annual audited consolidated financial statements
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Three Months Ended December 31
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Twelve Months Ended December 31
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(all dollar amounts in $ millions except per share information)
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2019
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2018
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2019
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2018
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Net earnings attributable to shareholders
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$
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172.1
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$
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44.0
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$
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530.9
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$
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185.0
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Add (deduct):
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Loss (gain) on derivative financial instruments1
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(0.5
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(0.3
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(0.3
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0.6
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Realized (loss) gain on energy derivative contracts
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—
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0.1
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(0.2
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0.1
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Other Losses
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6.1
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1.9
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15.1
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0.8
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Loss (gain) on foreign exchange
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3.0
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0.7
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3.1
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(0.1
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Acquisition-related costs
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6.4
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(8.9
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11.6
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0.7
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Change in value of investments carried at fair value3
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(98.1
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46.0
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(278.1
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138.0
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Costs related to tax equity financing
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—
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1.3
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—
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1.3
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Other non-recurring adjustments
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2.2
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—
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2.2
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—
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U.S. Tax Reform and related deferred tax adjustments2
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—
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(18.4
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—
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(18.4
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Adjustment for taxes related to above
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12.4
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4.1
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37.0
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4.2
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Adjusted Net Earnings
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$
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103.6
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$
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70.5
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$
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321.3
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$
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312.2
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Adjusted Net Earnings per share
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$
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0.20
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$
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0.14
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$
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0.63
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$
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0.66
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1
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Excludes the gain related to the discontinuation of hedge accounting on an energy hedge put in place early in the development of the Sugar Creek Wind Project (See Note 24(b)(ii) in APUC's annual audited consolidated financial statements).
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2
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Represents the non-cash accounting adjustment related to the revaluation of U.S. deferred income tax assets and liabilities as a result of implementation of the effects of U.S. Tax Reform.
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3
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See Note 8 in APUC's annual audited consolidated financial statements
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Three Months Ended December 31
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Twelve Months Ended December 31
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(all dollar amounts in $ millions)
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2019
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2018
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2019
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2018
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Cash flows from operating activities
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$
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167.5
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$
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168.6
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$
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611.3
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$
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530.4
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Add (deduct):
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Changes in non-cash operating items
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(29.8
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(27.3
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(60.3
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8.1
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Production based cash contributions from non-controlling interests
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—
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—
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3.6
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13.9
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Acquisition-related costs
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6.4
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(8.8
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11.6
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0.7
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Reimbursement of operating expenses incurred on joint venture
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—
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—
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—
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1.0
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Adjusted Funds from Operations
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$
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144.1
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$
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132.5
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$
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566.2
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$
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554.1
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1.
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C$0.32263 per Preferred Share, Series A, payable in cash on March 31, 2020 to Preferred Share, Series A holders of record on March 13, 2020, for the period from December 31, 2019 to, but excluding, March 31, 2020.
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2.
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C$0.31819 per Preferred Share, Series D, payable in cash on March 31, 2020 to Preferred Share, Series D holders of record on March 13, 2020, for the period from December 31, 2019 to, but excluding, March 31, 2020.
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