SOURCE: Polaris Infrastructure Inc.

Polaris Infrastructure Inc.

August 09, 2016 20:00 ET

Polaris Infrastructure Declares Quarterly Dividend

TORONTO, ON--(Marketwired - August 09, 2016) - Polaris Infrastructure Inc. (TSX: PIF) ("Polaris Infrastructure" or the "Company"), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to announce that its board of directors has declared a quarterly dividend of US$0.10 per common share outstanding. This dividend will be paid on August 25, 2016 to shareholders of record at the close of business on August 19, 2016.

Consistent with the Company's previously stated dividend policy to pay common share dividends on a quarterly basis based on a target ratio of 40% to 60% of Cash Flow Available for Distribution ("CFAD"), our dividend for the second quarter of 2016 equates to a 51% payout ratio, while on a year-to-date basis, our cumulative dividends equate to a 47% payout ratio. The Company defines CFAD as follows: Adjusted EBITDA less debt service less sustaining capex contribution less cash taxes (if any).

About Polaris Infrastructure

Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.

USE OF NON-GAAP MEASURES

Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures. Where non-GAAP measures or terms are used, definitions are provided. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.

EBITDA is a non-GAAP metric used by many investors to compare companies on the basis of ability to generate cash from operations. The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, other gains and losses, impairment loss, depreciation and amortization of plant assets, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and are not factors used by management for evaluating the performance of the Company. The Company believes the presentation of this measure will enhance an investor's understanding of its operating performance. Adjusted EBITDA is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with GAAP.

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