MONTREAL, May 12 /PRNewswire-FirstCall/ - Due to higher levels of
electricity production and revenue from the sale of Renewable Energy
Certificates (RECs), Boralex Inc. ("Boralex" or the "Corporation") recorded
$55.0 million in revenue from energy sales in the first quarter of 2008, up
8% over same period in 2008.
(in millions of dollars, except per share data)
-------------------------------------------------------------------------
Three months ended
---------------------------
March 31 March 31
2008 2007
---------------------------
Revenue from energy sales 55.0 50.8
EBITDA 24.4 25.8
Net earnings 9.2 9.8
Basic net earnings per share $0.25 $0.33
Cash flow from operations 20.7 20.1
-------------------------------------------------------------------------
Excluding the adverse impact of exchange rate fluctuations, revenue
would have risen by more than 18%. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") totalled $24.4 million in the
first quarter compared to $25.8 million for the same period in 2007. The
change in EBITDA was positively influenced by a significant increase in REC
sales and in total energy production, but was negatively affected by
exchange rate fluctuations, fuel cost increases in the wood-residue segment
and certain non-recurring items recorded in 2007. The first quarter of 2008
ended with net earnings of $9.2 million or $0.25 per share, compared to
$9.8 million or $0.33 per share in 2007.
The segment breakdown shows that the wind power segment benefited from
the start-up of the Citadelle wind farm and production increases at
existing sites. Revenue from energy sales grew $1.9 million to $10.2
million in the first quarter of 2008, while EBITDA for this period rose 20%
to $8.5 million. In the hydroelectric segment, revenue grew $0.7 million to
$3.8 million compared to the first quarter of 2007, due to better hydrology
than the previous year. Revenue in the wood-residue segment rose to $34.3
million in 2008, up $0.9 million compared to the first quarter of 2007,
stemming from the strong increases in revenue from REC sales and in the
average electricity selling price. However, fuel costs for this segment
rose $3.8 million. The good performance of the natural gas segment was due
to increases in electricity and steam prices. Revenue from energy sales in
this segment was up 10%, to $6.7 million, in the first quarter of 2008.
"We are confident that Boralex will put in a good performance in 2008
because we continually strive to improve the efficiency of our wood-residue
thermal power stations and because of the growing contribution from the
wind power segment," said Patrick Lemaire, President and Chief Executive
Officer of Boralex. "Indeed, the entire Boralex team and its partners are
delighted with the award to build wind power projects with 272 MW of
installed capacity on the Seigneurie de Beaupre lands. This great news will
put Boralex right on track to achieving our goal of putting 1000 MW under
contract within the next five years."
About Boralex
Boralex is a major private electricity producer whose core business is
the development and operation of power stations that run on renewable
energy. Employing close to 300 people, the Corporation owns and operates 21
power stations with a combined installed capacity of 351 MW in Quebec, the
northeastern United States and France. Boralex is distinguished by its
leading expertise and long experience in three types of power generation -
wind power, hydroelectric power and thermal. The Boralex shares trade on
the Toronto stock exchange under the ticker symbol BLX. http://www.boralex.com
In addition, Boralex holds a 23% interest in Boralex Power Income Fund
which owns 10 power stations in Quebec and the United States with an
installed capacity of close to 190 MW. Management of the Fund's assets is
provided by Boralex.
Certain statements in this release, including statements regarding
future results and performance, are forward-looking statements based on
current expectations. The accuracy of such statements is subject to a
number of risks, uncertainties and assumptions that may cause actual
results to differ materially from those projected, including, but not
limited to, the effect of general economic conditions, decreased demand for
Boralex's products, increases in raw material costs, fluctuations in
currency exchange rates, fluctuations in sales prices and adverse changes
in general market and industry conditions. The summarized financial
statements included in this press release also contain certain financial
measurements that are not recognized as Generally Accepted Accounting
Principles (GAAP).
To assess the operating performance of its assets and reporting
segments, the Corporation uses Earnings before interest, taxes,
depreciation and amortization (EBITDA) and Cash flows from operations as
performance measurements. EBITDA and Cash flows from operations are not
defined under GAAP and do not have a standardized meaning prescribed by
GAAP. Therefore, these measures may not be comparable to similar measures
presented by other enterprises. EBITDA is defined in the summarized
financial statements included with this press release. Cash flows from
operations corresponds to cash flows from operating activities before
changes in non-cash working capital balances as disclosed in the
consolidated statements of cash flows attached in this press release.
Notice to shareholders
The interim financial statements as at March 31, 2008 and 2007 have not
been reviewed by our auditors PricewaterhouseCoopers LLP. The financial
statements are the responsability of the Management of Boralex Inc. They
have been reviewed and approved by its Board of Directors, as recommended
by its Audit Committee.
The following financial informations were extracted from the interim
consolidated financial statements of Boralex Inc. The complete interim
financial statements were prepared conformingly with the Canadian generally
accepted accounting principles ("GAAP"). They are available on the
Boralex's website (http://www.boralex.com) and filed with SEDAR.
Consolidated Financial Statements
Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)
As at As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 70,495 79,195
Accounts receivable 45,089 39,200
Future income taxes 1,437 2,394
Inventories 6,582 8,002
Prepaid expenses 2,824 2,171
-------------------------------------------------------------------------
126,427 130,962
Investment 68,292 67,321
Property, plant and equipment 281,086 258,712
Electricity sales contracts 20,365 18,527
Other assets 56,416 39,209
-------------------------------------------------------------------------
552,586 514,731
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 19,324 20,869
Income taxes payable 1,769 1,481
Current portion of long-term debt 27,573 26,786
-------------------------------------------------------------------------
48,666 49,136
Long-term debt 160,143 148,747
Future income taxes 28,759 23,430
Fair value of derivative financial instruments 3,130 1,400
Other liabilities 6,253 6,642
Non-controlling interests 714 607
-------------------------------------------------------------------------
247,665 229,962
Shareholders' equity
Capital stock 223,023 221,557
Contributed surplus 2,232 1,974
Retained earnings 124,890 115,669
Accumulated other comprehensive income (45,224) (54,431)
-------------------------------------------------------------------------
304,921 284,769
-------------------------------------------------------------------------
552,586 514,731
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Earnings
(in thousands of dollars, except per-share amounts and number of shares)
(unaudited)
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
Revenue from energy sales 55,019 50,802
Renewable energy tax credits 3,122 3,755
Operating costs 34,460 31,213
-------------------------------------------------------------------------
23,681 23,344
Share in earnings of the Fund 3,248 3,478
Management revenue from the Fund 1,341 1,406
Other revenue 31 1,519
-------------------------------------------------------------------------
28,301 29,747
-------------------------------------------------------------------------
Other expenses
Management and operation of the Fund 938 1,161
Administration costs 2,998 2,789
-------------------------------------------------------------------------
3,936 3,950
-------------------------------------------------------------------------
Operating earnings before amortization 24,365 25,797
-------------------------------------------------------------------------
Amortization 5,828 5,982
Financial instruments 319 -
Financing costs 3,465 4,548
-------------------------------------------------------------------------
9,612 10,530
-------------------------------------------------------------------------
Earnings before income taxes 14,753 15,267
Income tax expense 5,438 5,433
-------------------------------------------------------------------------
9,315 9,834
Non-controlling interests 94 57
-------------------------------------------------------------------------
Net earnings 9,221 9,777
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings per Class A share (basic)
(in dollars) 0.25 0.33
Net earnings per Class A share (diluted)
(in dollars) 0.24 0.32
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of Class A shares
outstanding (basic) 37,566,967 30,061,484
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Retained Earnings
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
Balance - beginning of period 115,669 97,649
Net earnings for the period 9,221 9,777
-------------------------------------------------------------------------
Balance - end of period 124,890 107,426
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Comprehensive Income
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
Net earnings for the period 9,221 9,777
-------------------------------------------------------------------------
Other comprehensive income:
Translation adjustments
Unrealized foreign exchange gains (losses)
on translation of financial statements
of self-sustaining foreign operations 9,091 (1,528)
Share of cumulative translation adjustments
of the Fund 591 351
Taxes (78) (112)
Cash flow hedges
Change in fair value of financial instruments (463) (2,091)
Realized losses on hedging items recognized
in net earnings (121) -
Taxes 187 668
-------------------------------------------------------------------------
9,207 (2,712)
-------------------------------------------------------------------------
Comprehensive income for the period 18,428 7,065
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
Operating activities
Net earnings 9,221 9,777
Distributions received from the Fund 3,098 3,098
Adjustments for non-cash items
Share in earnings of the Fund (3,248) (3,478)
Amortization 5,828 5,982
Amortization of financing costs 708 648
Renewable energy tax credits (1,093) (1,330)
Future income taxes 5,436 5,018
Financial instruments 319 -
Other 479 377
-------------------------------------------------------------------------
20,748 20,092
Change in non-cash working capital balances (5,542) (7,195)
-------------------------------------------------------------------------
15,206 12,897
-------------------------------------------------------------------------
Investing activities
Purchase of property, plant and equipment (3,997) (499)
Change in debt servicing reserves (29) (21)
Development projects (14,557) (82)
Other (150) (1,039)
-------------------------------------------------------------------------
(18,733) (1,641)
-------------------------------------------------------------------------
Financing activities
Increase in long-term debt - 2,529
Payments on long-term debt (9,000) (2,340)
Financing costs - (5)
Net proceeds from share issuance 1,466 127
Other - (254)
-------------------------------------------------------------------------
(7,534) 57
-------------------------------------------------------------------------
Translation adjustment on cash
and cash equivalents 2,361 (96)
-------------------------------------------------------------------------
Net change in cash and cash equivalents (8,700) 11,217
Cash and cash equivalents - beginning of period 79,195 13,899
-------------------------------------------------------------------------
Cash and cash equivalents - end of period 70,495 25,116
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Cash and cash equivalents paid for:
Interests 3,004 3,309
Income taxes 303 862
-------------------------------------------------------------------------
Segmented Information
(tabular amounts in thousands of dollars, unless otherwise specified)
(unaudited)
The Corporation's power stations are grouped under four distinct
segments: wind power, hydroelectric power, wood-residue thermal power and
natural gas thermal power, and are engaged mainly in the production of
energy. The classification of these segments is based on the different cost
structures relating to each type of power station.
The Corporation analyzes the performance of its operating segments
based on their EBITDA which is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is not a measure of performance under
Canadian generally accepted accounting principles; however, management uses
this performance measure for assessing the operating performance of its
reportable segments. Earnings for each segment are presented on the same
basis as those of the Corporation.
The following table reconciles EBITDA with net earnings:
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
Net earnings 9,221 9,777
Non-controlling interests 94 57
Income tax expense 5,438 5,433
Financing costs 3,465 4,548
Financial instruments 319 -
Amortization 5,828 5,982
-------------------------------------------------------------------------
EBITDA 24,365 25,797
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Information by operating segment
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
PRODUCTION (in MWh)
Wind power stations 75,822 61,976
Hydroelectric power stations 43,380 33,581
Wood-residue thermal power stations 327,908 341,380
Natural gas thermal power station 22,493 22,174
-------------------------------------------------------------------------
469,603 459,111
-------------------------------------------------------------------------
-------------------------------------------------------------------------
REVENUE FROM ENERGY SALES
Wind power stations 10,170 8,268
Hydroelectric power stations 3,790 3,079
Wood-residue thermal power stations 34,337 33,360
Natural gas thermal power station 6,722 6,095
-------------------------------------------------------------------------
55,019 50,802
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EBITDA
Wind power stations 8,516 7,070
Hydroelectric power stations 3,047 2,066
Wood-residue thermal power stations 11,083 12,175
Natural gas thermal power station 1,319 2,105
Corporate and eliminations 400 2,381
-------------------------------------------------------------------------
24,365 25,797
-------------------------------------------------------------------------
-------------------------------------------------------------------------
For the quarters
ended March 31,
2008 2007
-------------------------------------------------------------------------
PURCHASE OF PROPERTY, PLANT AND EQUIPMENT
Wind power stations 2,686 197
Hydroelectric power stations 6 118
Wood-residue thermal power stations 1,200 45
Natural gas thermal power station - 2
Corporate and eliminations 105 137
-------------------------------------------------------------------------
3,997 499
-------------------------------------------------------------------------
-------------------------------------------------------------------------
As at As at
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
ASSETS
Wind power stations 219,012 196,816
Hydroelectric power stations 15,570 12,434
Wood-residue thermal power stations 133,104 130,715
Natural gas thermal power station 18,921 16,132
Corporate and eliminations 165,979 158,634
-------------------------------------------------------------------------
552,586 514,731
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SOURCE BORALEX INC.
 back to top
CONTACT:
Patricia Lemaire, Director, Public Affairs
and Communications, Boralex Inc., (514) 985-1353,
patricia.lemaire@boralex.com
|
