"We are pleased to announce that today our Board of Directors approved a 6% increase in our quarterly common share dividend, supported by solid operating results from the Company's diversified and resilient business model," said
Q1 2022 Financial Highlights
- Revenue of
$735.7 million , an increase of 16% compared to the first quarter of 2021 - Adjusted EBITDA1 of
$330.6 million , an increase of 17% compared to the first quarter of 2021; - Adjusted Net Earnings1 of
$141.3 million , an increase of 13% compared to the first quarter of 2021; and - Adjusted Net Earnings1 per share of
$0.21 , an increase of 5% compared to the first quarter of 2021.
All amounts in | Three months ended | |||||||
2022 | 2021 | Change | ||||||
Revenue | $ | 735.7 | $ 634.5 | 16% | ||||
Net earnings attributable to shareholders | 91.0 | 13.9 | 555% | |||||
Per share | 0.13 | 0.02 | 550% | |||||
Cash provided by operating activities | 166.2 | (243.5) | 168% | |||||
Adjusted Net Earnings1 | 141.3 | 124.5 | 13% | |||||
Per share | 0.21 | 0.20 | 5% | |||||
Adjusted EBITDA1 | 330.6 | 282.9 | 17% | |||||
Adjusted Funds from Operations1 | 220.2 | 205.3 | 7% | |||||
Dividends per share | 0.1706 | 0.1551 | 10% |
1. Please refer to "Non-GAAP Measures" at the end of this document for further details. |
Corporate Highlights
- Approval by
Kentucky Public Service Commission ("KPSC") – OnMay 4, 2022 , the KPSC issued an order, including an approval of the pending acquisition ofKentucky Power Company andAEP Kentucky Transmission Company, Inc. (the "Kentucky Power Transaction") byLiberty Utilities Co. ("Liberty Utilities "), an indirect, wholly-owned subsidiary of AQN, subject to certain conditions set forth in the order, including those agreed to byLiberty Utilities in the course of the docket. The Kentucky Power Transaction was originally announced onOctober 26, 2021 . Closing of the Kentucky Power Transaction is subject to the satisfaction of certain conditions precedent, including the approval of theU.S. Federal Energy Regulatory Commission ("FERC") for the Kentucky Power Transaction and certain approvals fromFERC , the KPSC and thePublic Service Commission of West Virginia with respect to the termination and replacement of the existing operating agreement for the Mitchell coal generating facility (in whichKentucky Power Company owns a 50% interest). - Liberty New York Water Acquisition & Integration – Effective
January 1, 2022 , the Company closed the previously-announced acquisition ofNew York American Water Company, Inc. (subsequently renamedLiberty Utilities (New York Water) Corp.) from American Water Works Company, Inc. for a purchase price of approximately$609 million . The transition and integration are progressing well as the Company continues to deliver safe and reliable water service to customers inNew York . - Issuance of approximately
$1.1 Billion of Subordinated Notes – OnJanuary 18, 2022 , the Company completed concurrent public offerings of junior subordinated notes inthe United States andCanada in an aggregate principal amount of$750 million andC$400 million , respectively (the "Note Offerings"). The Company intends to use the net proceeds of the Note Offerings to partially finance the Kentucky Power Transaction provided that, in the short-term, prior to closing of the Kentucky Power Transaction, the Company has used a portion of, and expects to use the remainder of such net proceeds to repay certain indebtedness of the Corporation and its subsidiaries. - Empire Missouri Rate Case Outcome – On
May 28, 2021 , theEmpire District Electric Company ("Empire") filed a rate review based on a 12 month historical test year endingSeptember 30, 2020 , with an update period throughJune 30, 2021 , requesting an increase in rates of$79.9 million which included$29.9 million related to recovery of fuel and power pass-through costs related to theFebruary 2021 Midwest Extreme Weather Event. Empire subsequently amended the rate request to$50.0 million after deferring the recovery of the extraordinary fuel pass-through costs as well as certain costs related to the retirement of theAsbury coal plant to a subsequent docket requesting securitization. OnApril 6, 2022 , theMissouri Public Service Commission issued its final Report and Order resulting in an annual base rate revenue increase of$39.5 million . - Completion of the Blue Hill Wind Facility – On
April 14, 2022 , the Renewable Energy Group achieved full commercial operations at its 175 MW Blue Hill Wind Facility, located in southwestSaskatchewan . The Blue Hill Facility is the Renewable Energy Group's 15th wind powered electric generating facility and is expected to generate approximately 683 GW-hrs of energy per year, with the output being sold through a long-term power purchase agreement with an investment grade rated entity. - Ongoing Execution of C&I Strategy – The Company continues to execute on its relationship with commercial and industrial ("C&I") customers to help them achieve their sustainability objectives. On
May 10, 2022 , AQN announced its collaboration with Meta, formerly known as Facebook, Inc., on AQN's 112MW Deerfield II Wind Project inHuron County, Michigan . Pursuant to the long-term power purchase agreement entered into by the parties, Meta will purchase 100 percent of the energy and environmental attributes from Deerfield II, building upon the existing relationship the companies have at the operating Altavista Solar Facility inVirginia . Construction on Deerfield II began inApril 2022 . - Increase in Common Share Dividend – Consistent with AQN's history of delivering total shareholder return comprised of an attractive dividend yield and capital appreciation, on
May 12, 2022 , AQN's board of directors approved a 6% dividend increase from a total annualized dividend of$0.6824 per common share to a total annualized dividend of$0.7233 per common share. The dividend is expected to be paid quarterly at a rate of$0.1808 per common share, up from$0.1706 per common share.
Additional information regarding AQN is available on its web site at www.AlgonquinPowerandUtilities.com and in its corporate filings on SEDAR at www.sedar.com (for Canadian filings) and EDGAR at www.sec.gov/edgar (for
Earnings Conference Call
AQN will hold an earnings conference call at
Date: | ||
Time: | ||
Conference Call: | Toll Free Dial-In Number | (888) 330-2454 |
Toll Dial-In Number | (240) 789-2714 | |
Event Passcode | 5079453 | |
Webcast: | https://event.on24.com/wcc/r/3730565/B0D9DC01E26134ED73A4E3E39A879DBE | |
Presentation also available at: www.algonquinpowerandutilities.com |
About
Algonquin is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution, and transmission businesses, and the pursuit of accretive acquisitions and value enhancing recycling of assets.
Algonquin's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the
Visit AQN at www.algonquinpowerandutilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute ''forward-looking information'' within the meaning of applicable securities laws in each of the provinces and territories of
Non-GAAP Measures
AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with generally accepted accounting principles in
The terms "Adjusted Net Earnings", "Adjusted EBITDA" and "Adjusted Funds from Operations", which are used in this news release, are non-GAAP financial measures. An explanation of each of these non-GAAP financial measures can be found in the section entitled "Caution Concerning Non-GAAP Measures" in the Interim MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable
Reconciliation of Adjusted EBITDA to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to
Three months ended | |||
(all dollar amounts in $ millions) | 2022 | 2021 | |
Net earnings attributable to shareholders | $ 91.0 | $ 13.9 | |
Add (deduct): | |||
Net earnings attributable to the non-controlling interest, exclusive of HLBV1 | 4.1 | 6.4 | |
Income tax expense (recovery) | 9.5 | (21.6) | |
Interest expense | 57.9 | 49.6 | |
Other net losses3 | 4.7 | 8.4 | |
Pension and post-employment non-service costs | 2.6 | 3.7 | |
Change in value of investments carried at fair value2 | 40.5 | 71.7 | |
Impacts from the Market Disruption Event4 on the Senate Wind Facility | — | 53.4 | |
Loss (gain) on derivative financial instruments | (0.3) | (1.1) | |
Realized loss on energy derivative contracts | 0.3 | 0.2 | |
Loss (gain) on foreign exchange | 0.3 | 0.9 | |
Depreciation and amortization | 120.0 | 97.4 | |
Adjusted EBITDA | $ 330.6 | $ 282.9 |
1 | Hypothetical liquidation at book value ("HLBV") represents the value of net tax attributes earned during the period primarily from electricity generated by certain |
2 | See Note 6 in the unaudited interim consolidated financial statements. |
3 | See Note 16 in the unaudited interim consolidated financial statements. |
4 | The "Market Disruption Event" refers to the significantly elevated pricing that persisted in the |
Reconciliation of Adjusted Net Earnings to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net Earnings and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to consolidated net earnings in accordance with
The following table shows the reconciliation of net earnings to Adjusted Net Earnings exclusive of these items:
Three months ended | |||
(all dollar amounts in $ millions except per share information) | 2022 | 2021 | |
Net earnings attributable to shareholders | $ 91.0 | $ 13.9 | |
Add (deduct): | |||
Loss (gain) on derivative financial instruments | (0.3) | (1.1) | |
Realized loss on energy derivative contracts Realized loss on energy derivative contracts | 0.3 | 0.2 | |
Other net losses2 | 4.7 | 8.4 | |
Loss (gain) on foreign exchange | 0.3 | 0.9 | |
Change in value of investments carried at fair value1 | 40.5 | 71.7 | |
Impacts from the Market Disruption Event on the Senate Wind Facility | — | 53.4 | |
Adjustment for taxes related to above | 4.8 | (22.9) | |
Adjusted Net Earnings | $ 141.3 | $ 124.5 | |
Adjusted Net Earnings per common share | $ 0.21 | $ 0.20 |
1 | See Note 6 in the unaudited interim consolidated financial statements. |
2 | See Note 16 in the unaudited interim consolidated financial statements. |
Reconciliation of Adjusted Funds from Operations to Cash Provided by Operating Activities
The following table is derived from and should be read in conjunction with the consolidated statement of operations and consolidated statement of cash flows. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Funds from Operations and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to cash provided by operating activities in accordance with
The following table shows the reconciliation of cash provided by operating activities to Adjusted Funds from Operations exclusive of these items:
Three months ended | |||
(all dollar amounts in $ millions) | 2022 | 2021 | |
Cash provided by operating activities | $ 166.2 | $ (243.5) | |
Add (deduct): | |||
Changes in non-cash operating items | 48.1 | 388.5 | |
Production based cash contributions from non-controlling interests | 3.7 | 4.8 | |
Impacts from the Market Disruption Event on the Senate Wind Facility | — | 53.4 | |
Acquisition-related costs | 2.2 | 2.1 | |
Adjusted Funds from Operations | $ 220.2 | $ 205.3 |
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