CALGARY, ALBERTA — (Marketwired) — 10/30/13 — ATCO Ltd. (TSX: ACO.X)(TSX: ACO.Y) –
ATCO today reported higher earnings for the third quarter of 2013 led by continued investment in utility infrastructure to support Alberta growth.
Third quarter Adjusted Earnings were $84 million compared to $79 million for the same period in 2012. The company achieved increased earnings from the Utilities, along with solid performance from ATCO Structures & Logistics as a result of strong earnings in the modular structures business in North America and high demand for lodging and support services.
Also, in the third quarter of 2013, ATCO Structures & Logistics recognized a $56 million one-time gain on the sale of its interest in the Chilean joint venture, Tecno Fast ATCO S.A. The gain on this sale is included in earnings attributable to Class I and Class II Shares but is excluded from Adjusted Earnings.
Earnings attributable to Class I and Class II Shares were $132 million in the third quarter compared to $81 million in the same period in 2012 primarily due to the inclusion of the gain on sale of Tecno Fast ATCO S.A. Adjusted Earnings will differ from earnings attributable to Class I and Class II Shares because of the timing of recoveries from or refunds to customers of amounts that are deferred by the Utilities for regulatory purposes; however, over time there is no difference. In addition, one-time items are not included in Adjusted Earnings.
Adjusted Earnings were $293 million for the nine months ended September 30, 2013 compared to $268 million in 2012. Earnings attributable to Class I and Class II Shares were $347 million for the nine months ended September 30, 2013 compared to $272 million in 2012.
Investment in Alberta–s utility infrastructure by ATCO Electric, ATCO Gas and ATCO Pipelines in the third quarter was $514 million, bringing the total for the first nine months of 2013 to $1,488 million, which is comparable to the same period of 2012.
RECENT DEVELOPMENTS
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of Adjusted Earnings to earnings attributable to Class I and Class II Shares is provided below:
Revenues in the third quarter and the first nine months of 2013 increased primarily due to increased rate base in the Utilities and higher power pool prices in ATCO Power.
Funds Generated by Operations increased in the third quarter and the first nine months of 2013 primarily for the same reasons earnings increased.
ATCO–s consolidated financial statements and management–s discussion and analysis for the three and nine months ended September 30, 2013 will be available on the ATCO website (), via SEDAR () or can be requested from the Corporation.
ATCO Ltd., with more than 9,400 employees and assets of approximately $16 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in structures & logistics (manufacturing, logistics and noise abatement), utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions). More information can be found at .
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Corporation–s expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
Contacts:
ATCO Ltd.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502