TransAlta Renewables Inc.
TSX : RNW

TransAlta Renewables Inc.

February 14, 2014 08:30 ET

TransAlta Renewables Reports Fourth Quarter Results for 2013

CALGARY, ALBERTA--(Marketwired - Feb. 14, 2014) - TransAlta Renewables Inc. (the "Company") (TSX:RNW) today reported fourth quarter Comparable EBITDA(1) of $53.4 million. Comparable Net Earnings for the fourth quarter were $17.1 million, or $0.15 per share. Reported Net Earnings attributed to common shareholders were $15.5 million. During the fourth quarter, the Company declared monthly dividends of $0.06416 per share for holders of record on February 3, 2014, March 3, 2014 and April 1, 2014 payable on each of February 28, 2014, March 28, 2014 and April 30, 2014, respectively. Today, the Company also declared a dividend of $0.06416 per share for holders of record on May 1, 2013 payable on May 30, 2014.

In December, the Company successfully completed its acquisition of an economic interest in the 144 megawatt (MW) wind farm in Wyoming which was originally announced on October 21, 2013.

"TransAlta Renewables' fourth quarter and full year results exhibit the strength of our renewables portfolio and its ability to generate strong cash flows for our shareholders," said Brett Gellner, President of the Company. "The acquisition of an economic interest the Wyoming Wind Farm in the fourth quarter demonstrates our commitment to grow and, as a result, we were able to increase the annual dividend."

The financial information in this news release represents carve out data derived from the accounting records of TransAlta Corporation up to and including August 8, 2013, in addition to the Company's actual results since August 9, 2013. Financial information for 2012 is also based on carve out data from TransAlta Corporation. More details in regards to the basis of measurement can be found in the final prospectus of the Company dated July 31, 2013.

Historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the Company and TransAlta Corporation that took effect upon closing of the Company's initial public offering ("IPO") on August 9, 2013, including the entering into of firm priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the Company's assets were held directly or indirectly by TransAlta Corporation.

Summary Results

Q4 2013 compared to Q4 2012

  • Comparable EBITDA of $53.4 million up from $51.7 million for the same period last year
  • Funds from operations of $45.1 million up from $44.4 million for the same period last year
  • Production of 842 GWh, up from 775 GWh for the same period last year

Full year 2013 compared to full year 2012

  • Comparable EBITDA of $184.1 million up from $159.4 million for the same period last year
  • Funds from operations of $154.0 million up from $131.1 million for the same period last year
  • Production of 2,885 GWh, up from 2,805 GWh for the same period last year

The following table depicts key financial results and statistical operating data:

Fourth Quarter and Full Year 2013 Highlights

In $CAD thousands, unless otherwise stated 3 months ended December 31, 2013 3 months ended December 31, 2012 12 months ended December 31, 2013 12 months ended December 31, 2012
Production (GWh) 842 775 2,885 2,805
Revenue 69,949 67,344 245,341 219,817
Net earnings attributable to common shareholders 15,535 18,522 50,258 32,091
Comparable EBITDA(1) 53,425 51,745 184,094 159,383
Funds from operations(1) 45,067 44,361 153,957 131,129
Cash flow from operating activities 37,698 36,571 161,836 116,914
Cash available for distribution(1) 40,979 40,644 142,495 120,301
Comparable earnings(1) 17,129 18,532 54,599 39,601
Basic and diluted earnings per common share 0.13 0.16 0.44 0.28
Comparable earnings per share(1) 0.15 0.16 0.48 0.35
Funds from operations per share(1) 0.39 0.39 1.34 1.14
Cash available for distribution per share(1) 0.36 - 1.24 -
Dividends paid per common share 0.18 - 0.23 -

(1) Comparable EBITDA refers to Earnings before interest, taxes, depreciation and amortization including finance lease income and adjusted for certain other items. Cash available for distribution represents the amount the cash generated from operations by our business, before changes in working capital and after sustaining and productivity capital, distributions to non-controlling interest and scheduled principal repayments of debts. Comparable EBITDA, funds from operations, cash available for distribution, comparable earnings, comparable earnings per share, funds from operations per share and cash available for distribution per share are not defined under IFRS. Presenting these measures from period to period provides supplemental information to help management and shareholders evaluate earnings' and cash flow trends in comparison with prior periods' results. Refer to the Non-IFRS Measures section of the Management's Discussion and Analysis ("MD&A") for further discussion of these items.

TransAlta Renewables is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the MD&A. These documents will be available today through TransAlta Renewables' website at www.transaltarenewables.com or through SEDAR at www.sedar.com.

A complete copy of TransAlta Renewables' fourth quarter extended news release is available in the Investors Centre section of our website: www.transaltarenewables.com.

About TransAlta Renewables Inc.

TransAlta Renewables owns 28 wind and hydroelectric power generation facilities, having an aggregate installed generating capacity of 1,232 MW, in which it holds a net ownership interest of approximately 1,111 MW. TransAlta Renewables' power generating capacity is among the largest of any publicly-traded renewable independent power producer ("IPP") in Canada, with more wind power generating capacity than any other Canadian publicly-traded IPP. TransAlta Renewables' strategy is focused on the efficient operation of its portfolio of renewable power generation assets and expanding its asset base through the acquisition of additional renewable power generation facilities in operation or under construction. TransAlta Renewables objective is to (i) create stable, consistent returns for investors through the ownership of contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties, including TransAlta; (ii) pursue and capitalize on strategic growth opportunities in the renewable power generation sector; and (iii) pay out a portion of cash available for distribution to the shareholders of TransAlta Renewables on a monthly basis.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These forward-looking statements are not historical facts but reflect the Company's current expectations concerning future plans, actions and results. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, the ability to successfully obtain regulatory approvals; changes in tax, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruptions; changes in economic and market conditions; and other risks and uncertainties discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time and as also set forth in the Company's MD&A and 2014 Annual Information Form. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this news release. The Company disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Cautionary Statement Regarding use of Non-IFRS Accounting Measures

This news release contains references to EBITDA and Funds from Operations which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of EBITDA and Funds from Operations used by other entities. We believe that EBITDA and Funds from Operations are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. Neither EBITDA nor Funds from Operations should be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. Refer to the Non-IFRS measures section of the MD&A for further explanation.

Note: All financial figures are in Canadian dollars unless noted otherwise.

Contact Information

  • Investor inquiries:
    TransAlta Renewables Inc.
    Brent Ward
    Director, Corporate Finance and Investor Relations
    1-800-387-3598 in Canada and U.S.
    investor_relations@transalta.com

    Media inquiries:
    TransAlta Renewables Inc.
    Stacey Hatcher
    Senior Corporate Relations Advisor
    Cell: 587-216-2242, Toll-free media number: 1-855-255-9184
    Alternate local number: 403-267-2540