|By PR Newswire||
|August 12, 2014 11:52 PM EDT||
(under IFRS and all amounts in US dollars unless otherwise stated)
TSX : AXY
VANCOUVER, Aug. 12, 2014 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) ("Alterra" or the "Company") is pleased to report its financial and operating results for the three and six months ended June 30, 2014. For further information on these results please see Alterra's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis.
Alterra consolidates 100% of the results of operations at HS Orka and Soda Lake, while Alterra's interests in the Toba Montrose run of river hydro facility and the Dokie 1 wind facility are accounted for as equity investments. In certain statements in this news release, Alterra's results are disclosed as Alterra's "net interest", which means the effective portion of results that Alterra would have reported if each of HS Orka (66.6%), Toba Montrose (40%), Dokie 1 (25.5%), and Soda Lake (100%) had been reported in accordance with Alterra's actual share of ownership at June 30, 2014 and for the three and six months then ended. While management monitors the consolidated results closely, it believes that net interest reporting provides the clearest view of Alterra's performance.
Highlights for the current quarter and subsequent period include:
Increase in revenue and gross profit: Consolidated revenue increased against the comparative quarter by 9% to
$16.5 million and gross profit increased by $0.7 million to $2.7
million, primarily due to increased generation at HS Orka. Net interest
in revenue and gross profit fell against the comparative quarter due to
lower generation at Toba Montrose and Dokie 1.
Reliable power generation: Alterra's fleet of power projects generated 334,960 MWh of clean power
(net interest), achieving 101% of budgeted generation.
Equity distributions: The Company recognized equity distributions declared during the quarter
from Dokie 1 and Blue Lagoon in the amounts of $0.6 million and $2.8
Jimmie Creek hydro project highlights:
Current activities: The Company has executed all major contracts and full construction is
underway, with nearly 100 workers currently active at the site. Road
and bridge construction is now complete and work is well underway at
the intake and powerhouse locations. Clearing for penstock excavation
is nearly complete and subsurface conditions are in line with
expectations. In 2014, the Company has invested C$34.2 million in the
project, which is expected to be in excess of the Company's required
equity contribution. All amounts invested in excess of the Company's
equity contribution will be returned to the Company at financial close.
- Partnership update: The Company entered into a partnership agreement with an affiliate of Fiera Axium Infrastructure Inc. ("Fiera Axium"). Under the agreement, at financial close, subject to certain conditions precedent, Fiera Axium will cover 49% of all partnership costs from January 1, 2014 forward in exchange for a 49% interest in the project. The Company, together with Fiera Axium is documenting a credit agreement with a group of four long-term fixed-rate lenders, and expects to close construction financing later in 2014.
- Current activities: The Company has executed all major contracts and full construction is underway, with nearly 100 workers currently active at the site. Road and bridge construction is now complete and work is well underway at the intake and powerhouse locations. Clearing for penstock excavation is nearly complete and subsurface conditions are in line with expectations. In 2014, the Company has invested C$34.2 million in the project, which is expected to be in excess of the Company's required equity contribution. All amounts invested in excess of the Company's equity contribution will be returned to the Company at financial close.
Shannon wind farm highlights:
Current activities: Work continued on design and geotechnical investigation. The Company is
in the process of documenting and executing project contracts
(operation and maintenance, turbine supply agreement, etc.),
documenting a power hedge for project output, and negotiating terms
with tax equity investors. The Company is expecting to close
construction financing for the project with two lenders later in 2014.
Alterra is expected to own up to 50% of the project under a partnership
agreement currently being negotiated with a large energy infrastructure
fund under the terms of a previously executed letter of intent.
- Interconnection security: The Company placed an additional $5.5 million (total $10.1 million) cash security with Oncor Electric Delivery Company LLC, the project's transmission service provider, which has begun the design and equipment procurement for the project's interconnection substation.
- Current activities: Work continued on design and geotechnical investigation. The Company is in the process of documenting and executing project contracts (operation and maintenance, turbine supply agreement, etc.), documenting a power hedge for project output, and negotiating terms with tax equity investors. The Company is expecting to close construction financing for the project with two lenders later in 2014. Alterra is expected to own up to 50% of the project under a partnership agreement currently being negotiated with a large energy infrastructure fund under the terms of a previously executed letter of intent.
Toba Montrose: The Company satisfactorily settled all insurance claims related to the
2012 naturally occurring rockslide. The project has obtained new
insurance coverage, effective immediately, at substantially the same
coverage terms as existed prior to the rockslide. Subsequent to the
quarter, the distribution waiver under the project loan agreement was
extinguished. The Company expect to receive an equity distribution of
$7.1 million from Toba Montrose in August 2014 (from a total
distribution of $17.8 million).
- Mariposa (Chile) development project: Summer construction activities were completed at the Mariposa project in preparation for planned drilling in late 2015. These activities included upgrades to existing site access roads, construction of new roads, and upgrades of site camp facilities.
The following table shows Alterra's net interest in selected operating and financial results for the quarter, in addition to key financial information extracted from the consolidated results.
For the 3 months ended
June 30, 2014 (a)
For the 3 months ended
June 30, 2013 (a)
|Business interruption proceeds||—||1,936||—||—||—||1,936||—|
|Gross profit (loss)||1,688||4,117||589||(539)||—||5,855||1,996|
All tabular amounts in the table above are expressed in thousands of US
dollars with the exception of generation that is expressed
For comparison purposes, the 2013 operating results shown here for Dokie
1 have been adjusted to show a pro forma 25.5%
interest for the comparative quarter (actual ownership during the comparative quarter was 51.0%).
Here and elsewhere, Adjusted EBITDA ("EBITDA") is defined by Alterra as
earnings before interest, taxes, foreign exchange,
depreciation and amortization, as well as before deductions for change in fair value of bonds payable and derivatives, foreign
exchange gain (loss), write off of development costs and goodwill, and other income (expense) except business interruption
proceeds, amortization of below market contracts, and value assigned to options granted, less share of income (loss) of equity
accounted investees, plus the Company's interest in EBITDA of its equity accounted investees. Alterra discloses EBITDA as it is
a measure used by analysts and by management to evaluate Alterra's performance. As EBITDA is a non-IFRS measure, it may
not be comparable to EBITDA calculated by others. In addition, as EBITDA is not a substitute for net earnings, readers should
consider net earnings in evaluating Alterra's performance. For a reconciliation of consolidated EBITDA to Alterra's consolidated
financial statements refer to the Company's Management's Discussion and Analysis for the three and six months ended June 30,
Revenue was up 9% at $16.5 million for the quarter ended June 30, 2014, due to increased generation at both HS Orka and Soda Lake which resulted in an increase in gross profit by $0.7 million.
Net income was $6.0 million, an improvement against the comparative quarter ($2.3 million loss) resulting from the increase in revenue and a reduction in general and administrative expenses, as well as certain non-cash items including:
- A $4.0 million non-cash gain ($6.8 million loss in the comparative quarter) resulting from an increase in long-term forecast aluminum prices from March 31, 2014, which caused a reduction in the value of the embedded derivative liabilities.
- A $4.3 million non-cash gain ($2.4 million loss in the comparative quarter) on foreign exchange due to favorable movements in exchange rates.
The increases were offset by a reduction in the share of results of equity investees to $2.9 million, from $7.2 million in the comparative quarter. The reduction is due to the recognition of property insurance proceeds at Toba Montrose of $4.1 million in the comparative quarter, against $0.8 million recognized in the three months to June 30, 2014, as well as lower winds at Dokie 1 in the current quarter and lower water flows at Toba Montrose.
Consolidated cash and cash equivalents at June 30, 2014 were $38.6 million of which $36.1 million is held in the Company's Icelandic subsidiary ($41.7 million and $33.9 million respectively at December 31, 2013).
Net Interest Results
Alterra's net interest revenue decreased 3% to $19.8 million compared to $20.3 million in the comparative quarter, which included business interruption proceeds related to the 2012 rockslide. EBITDA decreased by 18% to $8.0 million as a result of the lower generation at Toba Montrose and Dokie 1.
The net interest cash position at June 30, 2014 was $33.1 million.
For the three months ended June 30, 2014, the Company's fleet wide generation was 101% of budget on a net interest basis.
|Q2 2014 Generation (MWh)|
|Facility||Budget||Actual||Budget||Actual||% of Budget|
John Carson, Alterra's CEO, said, "Our team produced strong results on all fronts this quarter. Our operators safely produced clean power above our targeted amount, and our development and financing teams made solid gains on our growth projects. Looking ahead our team remains fully focused on achieving positive growth and results for our shareholders."
Alterra Power will host a conference call to discuss financial and
operating results on Wednesday, August 13, 2014 at 11:30 am ET (8:30 am
North American participants dial 1-888-390-0546 and International participants dial 1-416-764-8688; the conference ID is 68495512
The call will also be broadcast live on the Internet at
The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering replay PIN 495512
Cautionary Note Regarding Forward-Looking Statements and Information
Certain statements included in this news release may contain information that is forward-looking within the meaning of certain securities laws, including information and statements regarding prospective results of operations, financial position, cash flows or growth potential. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors include those set out in the management's discussion and analysis section of Alterra's most recent annual report and quarterly report, and in Alterra's Annual Information Form. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, Alterra undertakes no obligation to update any forward-looking statements or information to reflect new information, subsequent or otherwise.
SOURCE Alterra Power Corp.
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers ...
May. 23, 2015 12:00 PM EDT Reads: 1,666
Software development, like manufacturing, is a craft that requires the application of creative approaches to solve problems given a wide range of constraints. However, while engineering design may be craftwork, the production of most designed objects relies on a standardized and automated manufacturing process. By contrast, much of moving an application from prototype to production and, indeed, maintaining the application through its lifecycle has often remained craftwork. In his session at Dev...
May. 23, 2015 12:00 PM EDT Reads: 1,077
Software Development Solution category in The 2015 American Business Awards, and will ultimately be a Gold, Silver, or Bronze Stevie® Award winner in the program. More than 3,300 nominations from organizations of all sizes and in virtually every industry were submitted this year for consideration. "We are honored to be recognized as a leader in the software development industry by the Stevie Awards judges," said Steve Brodie, CEO of Electric Cloud. "We introduced ElectricFlow and our Deploy app...
May. 23, 2015 12:00 PM EDT Reads: 1,527
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data...
May. 23, 2015 12:00 PM EDT Reads: 1,605
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, will discuss IoE and the enormous opportunities it provides to public and private firms alike. She will shar...
May. 23, 2015 12:00 PM EDT Reads: 1,765
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
May. 23, 2015 11:45 AM EDT Reads: 1,061
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
May. 23, 2015 11:30 AM EDT Reads: 2,283
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enter...
May. 23, 2015 11:15 AM EDT Reads: 1,551
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
May. 23, 2015 11:00 AM EDT Reads: 1,352
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
May. 23, 2015 11:00 AM EDT Reads: 651
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
May. 23, 2015 11:00 AM EDT Reads: 5,376
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
May. 23, 2015 11:00 AM EDT Reads: 3,716
Organizations today are confounded by an avalanche of data that needs to be processed and managed on a daily basis. Through relevant use cases and a thought-provoking dialogue on an organization’s ‘Data to Decisions’ journey, Andrew Clyne, Chief Data Officer at CenturyLink Cognilytics, will reveal in his session at Big Data Expo how your organization can monetize data as a strategic asset. State-of-the-art Big Data and Advanced Analytics capabilities provided as a managed service can enable da...
May. 23, 2015 10:45 AM EDT Reads: 1,497
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
May. 23, 2015 10:30 AM EDT Reads: 2,615
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
May. 23, 2015 10:00 AM EDT Reads: 1,747