CALGARY, ALBERTA — (Marketwired) — 10/30/13 — TransAlta Renewables Inc. (the “Company”) (TSX: RNW) today reported Comparable EBITDA(1) of $29.1 million for the third quarter. Comparable net earnings in the third quarter were $4.0 million, up from $2.8 million in the same period last year. Reported net earnings were $1.2 million in the quarter. The Company also declared a monthly dividend of $0.0625 per share for holders of record on December 2, 2013 and January 2, 2014 and payable December 31, 2013 and January 31, 2014 respectively.
On October 21, 2013, the Company announced it will acquire the economic interest in a 144 megawatt (MW) wind farm in Wyoming for approximately US$102 million from an affiliate of NextEra Energy Resources, LLC. The wind farm is fully operational and contracted under a long-term power purchase agreement until 2028 with an investment grade counterparty. The acquisition is subject to regulatory approvals and is expected to close by the end of December 2013. The acquisition is expected to be accretive to the Company–s cash available for distribution per share by approximately 2 – 3%.
“TransAlta Corporation, the majority shareholder, created TransAlta Renewables as a vehicle to continue to grow in the renewables power sector,” said Brett Gellner, President of the Company. “The acquisition of the wind farm in Wyoming demonstrates our commitment to grow and create value for shareholders, and establishes our first wind farm in the United States. The acquisition will also further diversify the company in terms of geography and number of assets.”
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 in regards to 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.
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 are also based on carve out data. More details in regards to the basis of measurement can be found in the final prospectus of the Company dated July 31, 2013.
Summary Results
Q3 2013 compared to Q3 2012
YTD 2013 compared to YTD 2012
The following table depicts key financial results and statistical operating data:
Third Quarter 2013 Highlights
The complete report for the quarter, including MD&A and unaudited interim financial statements, as well as our presentation is available on the Investors section of our website: .
Note: All financial figures are in Canadian dollars unless noted otherwise.
About TransAlta Renewables Inc.
TransAlta Renewables Inc. owns a portfolio of renewable power generation facilities. 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. TransAlta Renewables currently holds 28 wind and hydroelectric power generation facilities, not including the Wyoming wind farm, having an aggregate installed generating capacity of 1,234 MW, in which TransAlta Renewables has a net ownership interest of approximately 1,112 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.
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. Forward-looking statements in this news release include statements relating to the closing of the acquisition of the Wyoming wind farm, the accretive nature of the acquisition and the ability of the Company to receive the economic interest in the Wyoming wind farm. 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, regulatory, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruption; 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 final prospectus of the Company dated July 31, 2013. 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 measure under IFRS and therefore may differ from definitions of EBITDA and Funds from operations used by other entities. We believe that operating 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. We have also presented these same measurements on a pro forma basis.
Note: All financial figures are in Canadian dollars unless noted otherwise.
Contacts:
Investor inquiries:
TransAlta Renewables Inc.
Brent Ward
Director, Corporate Finance and Investor Relations
1-800-387-3598 in Canada and U.S.
Media inquiries:
TransAlta Renewables Inc.
Stacey Hatcher
Senior Corporate Relations Advisor
Cell: 587-216-2242 or Toll-free media number: 1-855-255-9184
Alternate local number: 403-267-2540