Maxim Power Corp.
TSX : MXG

Maxim Power Corp.

September 21, 2011 18:55 ET

Maxim Power Corp. Announces Confirmation of 2011 Guidance, M2 Development Update and $14 million Expansion of Credit Facility

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2011) - Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") is confirming that its guidance for 2011 remains unchanged from the guidance provided in MAXIM's Management Discussion and Analysis dated March 25, 2011, as shown in the following table:

(000's, except per share amounts) For the year ending December 31, 2011
Adjusted EBITDA (1) $ 37,972
Funds from operations (1) $ 34,853
Funds from operations per share – basic and diluted (1) (2) $ 0.65
Net income (loss) $ 6,436
Net income per share - basic and diluted (2) $ 0.12
(1) The following measures are not measures under Canadian Generally Accepted Accounting Principles ("GAAP") and may not be comparable to similar measures presented by other companies. Refer to MAXIM's MD&A dated March 25, 2011 for a reconciliation of these non-GAAP measures.
- Adjusted EBITDA is a measure of earnings before interest, taxes, depreciation and amortization, and certain other expenses
- Funds from operations is a measure of cash flow from operations before working capital requirements
(2) Per share amounts are calculated using average weighted shares outstanding. Refer to MAXIM's MD&A dated March 25, 2011 for assumptions related to shares outstanding

MAXIM anticipates that Adjusted EBITDA will be $38 million in 2011. Results to date in Q3 and forecast for Q4 show significant improvement over Q2 2011 due to improving Alberta wholesale electricity prices and the Corporation having reduced the average cost of coal per megawatt hour at HR Milner for the balance of 2011.

Milner Expansion

On August 10, 2011, the Alberta Utilities Commission ("AUC") issued its final decision to approve MAXIM's application to construct and operate the 500 megawatt ("MW") Milner Expansion Project ("M2").

M2 has been under development by MAXIM since May 2005. A lengthy public consultation and regulatory approval process has culminated in the project's approval by the AUC. M2 will utilize supercritical, pulverized coal technology, making it one of the cleanest and most fuel-efficient coal-fired power plants in Canada that can meet Alberta's growing electric energy needs and allow for the orderly retirement of a less efficient, less reliable and aging conventional coal-fired fleet.

The M2 design incorporates emission control equipment capable of achieving 60 to 80 percent reductions in sulphur dioxide, nitrogen oxides and mercury compared to the conventional coal-fired power plants still operating in Alberta. The highly efficient M2 design will also reduce carbon dioxide emissions by 20% compared to these plants. M2 is a reliable and low-cost generation supply solution for Albertans that is entirely consistent with federal and provincial goals for emissions reductions.

Expansion of Credit Facility

MAXIM has expanded its credit facility with the Bank of Montreal ("BMO"). The BMO credit facility has been amended by the addition of Facility E, which is a $14 million revolving credit facility. Facility E may be used for the construction of MAXIM's Mine 14 Project and is available to MAXIM until December 31, 2011.

About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM currently owns and operates 44 power plants in western Canada, the United States and France, having 809 MW of electric and 117 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward looking statements as required pursuant to applicable securities laws.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President and CEO
    (403) 263-3021

    Maxim Power Corp.
    Michael R. Mayder
    Vice President, Finance and CFO
    (403) 263-3021
    www.maximpowercorp.com