Welcome!

News Feed Item

ATCO Achieved Record Earnings in 2013

CALGARY, ALBERTA -- (Marketwired) -- 02/20/14 -- ATCO Ltd. (TSX: ACO.X)(TSX: ACO.Y) ATCO today reported record earnings for 2013 and the Company's largest-ever annual investment in Alberta utility infrastructure.

Adjusted earnings were $390 million compared to $370 million in 2012. Earnings attributable to Class I and Class II Shares, which include items not in the normal course of business, were $418 million for 2013 compared to $370 million in 2012.

The Utilities business segment, which includes natural gas, electricity and pipeline infrastructure, drove the record adjusted earnings as a result of increased capital expenditures of $2.2 billion in 2013, exceeding the $2.1 billion spent in 2012. Investment was led by ATCO Electric, which is building new transmission infrastructure to meet Alberta's long term electricity demand and improve reliability for customers. Work continued on the $1.8 billion Eastern Alberta Transmission Line throughout the year, while the Hanna Region Transmission Development project was completed in the third quarter.

"Our Utilities companies had a strong year building critical infrastructure in Alberta," said Nancy Southern, Chair, President & CEO, ATCO. "I'm particularly pleased that we delivered the largest project in our history, the $650 million Hanna Transmission project, on time and $60 million under budget."

ATCO Power also contributed to the record adjusted earnings. The primary drivers were higher realized power prices and a continued focus on maintenance which led to higher plant availability.

Increased earnings attributable to Class I and Class II Shares were the result of higher adjusted earnings and ATCO Structures & Logistics' sale of its interests in its South American operations for cash proceeds of $124 million. The sale resulted in a gain of $88 million; the Company recognized earnings of $56 million after income taxes and non-controlling interests. Partly offsetting these earnings were impairments of power generation assets in the United Kingdom and natural gas gathering, processing and liquids extraction assets in western Canada.

ATCO had fourth quarter adjusted earnings of $97 million, compared to record earnings of $102 million for the same quarter in 2012. The lower earnings were a result of ATCO Structures & Logistics' reduced project activity in Australia and forgone earnings from the sale of the Company's modular structures operations in South America. ATCO Power also experienced lower power prices and increased planned maintenance outages in the fourth quarter. These decreases were partly offset by ATCO Structures & Logistics' strong fleet sales and workforce housing projects in North America, and ATCO's continued investment in utility infrastructure in Alberta. Earnings attributable to Class I and Class II Shares were $71 million in the fourth quarter compared to $98 million in the same period in 2012 because of the asset impairments.

RECENT DEVELOPMENTS


--  ATCO Structures & Logistics was awarded a contract to manufacture,
    install and operate a 1,200-person workforce housing facility for Shell
    Carmon Creek Project in northern Alberta.  Manufacturing work started in
    the fourth quarter of 2013, with completion scheduled for the second
    quarter of 2015.

--  ATCO Pipelines received approval from the Alberta Utilities Commission
    to proceed with the approximately $700 million Urban Pipeline
    Replacement Project. This project will replace and relocate the
    Company's aging, high-pressure natural gas pipelines located in densely
    populated areas of Calgary and Edmonton into the Transportation Utility
    Corridors that surround both cities.

--  In 2013, Standard and Poor's Rating Services re-affirmed ATCO's A
    (Stable) rating.  Additionally, in December 2013, Standard and Poor's
    upgraded ATCO Gas Australia's credit rating outlook from BBB (Positive)
    to A- (Stable).

--  ATCO declared a first quarter dividend for 2014 of 21.5 cents per Class
    I Non-Voting and Class II Voting Share, a 15% increase over the 18.75
    cents paid in the previous four quarters. ATCO's annual dividend per
    share has increased for 21 consecutive years.

--  On November 7, 2013, ATCO's subsidiary, CU Inc., issued $225 million of
    40-year 4.558% Debentures maturing November 7, 2053.

FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS

A financial summary and reconciliation of adjusted earnings to earnings attributable to Class I and Class II Shares is provided below:


                                           For the Three      For the Year
                                            Months Ended         Ended
                                          December 31 (4)    December 31 (4)
----------------------------------------------------------------------------
($ Millions except share data)               2013      2012     2013    2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Adjusted earnings (1)                          97       102      390     370
Gain and loss on asset sales (2)               (2)        -       54       -
Impairments (2)                               (25)        -      (25)      -
Adjustments for rate-regulated
 activities (2)                                 1        (4)      (1)      -
----------------------------------------------------------------------------
Earnings attributable to Class I and
 Class II Shares                               71        98      418     370
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues                                    1,164     1,080    4,359   4,012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds generated by operations (3)             486       463    1,868   1,636
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average shares outstanding
 (millions of shares)                       114.8     114.6    114.8   115.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 (1) Adjusted earnings are earnings attributable to Class I and Class II
Shares after adjusting for the timing of revenues and expenses associated
with rate-regulated activities. Adjusted earnings also exclude one-time
gains and losses, significant impairments and items that are not in the
normal course of business or as a result of day-to-day operations. Adjusted
earnings present earnings on the same basis as was used prior to adopting
International Financial Reporting Standards (IFRS) - that basis being the
U.S. accounting principles for rate-regulated entities - and they are a key
measure used to assess segment performance, to reflect the economics of rate
regulation and to facilitate comparability of ATCO's earnings with other
Canadian rate-regulated companies.

(2) Refer to Note 6 to the consolidated financial statements for
descriptions of the adjustments.

(3) This measure is cash flow from operations before changes in non-cash
working capital. It does not have standardized meaning under IFRS and may
not be comparable to similar measures used by other companies.

(4) 2012 financial information has been restated as a result of adopting new
and amended IFRS accounting standards that became effective in 2013.

The $347 million year over year increase in revenues ($84 million in the fourth quarter) was mainly due to growth in the Utilities segment, higher realized power prices, and increased fuel costs in power generation and natural gas extraction operations that are flowed through to customers.

Funds generated by operations increased $232 million for the year ($23 million in the fourth quarter) primarily for the same reasons earnings increased, coupled with higher contributions received from customers for utility capital expenditures.

ATCO's consolidated financial statements and management's discussion and analysis for the three months and year ended December 31, 2013 will be available on the ATCO website (www.atco.com), via SEDAR (www.sedar.com) or can be requested from the Company.

ATCO Ltd., with more than 9,800 employees and assets of approximately $16 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and liquids extraction) and Technologies (business systems solutions). More information can be found at www.atco.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

Contacts:
ATCO Ltd.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.atco.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...