|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.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Mar. 26, 2017 09:45 PM EDT Reads: 2,028
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Mar. 26, 2017 09:45 PM EDT Reads: 7,551
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 26, 2017 08:30 PM EDT Reads: 6,102
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Mar. 26, 2017 07:45 PM EDT Reads: 9,584
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
Mar. 26, 2017 06:45 PM EDT Reads: 4,249
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 26, 2017 06:30 PM EDT Reads: 2,034
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 26, 2017 05:00 PM EDT Reads: 2,122
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...
Mar. 26, 2017 05:00 PM EDT Reads: 3,585
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Mar. 26, 2017 03:30 PM EDT Reads: 6,518
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...
Mar. 26, 2017 03:15 PM EDT Reads: 2,800
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Mar. 26, 2017 03:00 PM EDT Reads: 10,538
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 26, 2017 02:45 PM EDT Reads: 946
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.
Mar. 26, 2017 02:30 PM EDT Reads: 1,764
SYS-CON Events announced today that Conference Guru has been named “Media 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. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
Mar. 26, 2017 02:15 PM EDT Reads: 4,381
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...
Mar. 26, 2017 02:00 PM EDT Reads: 3,385