STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QC, Feb. 7 /CNW Telbec/ - Great Lakes Hydro Income Fund
(GLH.UN: TSX) today announced financial results for the fourth quarter and
year ended December 31, 2005.
Revenue generated from operations in the fourth quarter totalled
$39.2 million compared to $30.2 million for the same period in 2004. The
strong performance in the fourth quarter was a result of above average water
inflows that positively impacted generation, which totalled 190 gigawatts
higher than the same period last year, and further supports the strength of
the Fund's geographic diversification strategy. Revenue for the full year
totalled $154.5 million compared to $166.6 million for last year.
Income before non-cash and special items totalled $17.0 million for the
fourth quarter compared to $8.3 million for the same period last year. For the
year, income before non-cash and special items totalled $69.5 million compared
to $78.8 million in 2004.
During the fourth quarter, the Fund completed three initiatives that will
increase value to unitholders:
- The installation of two new generating units at the existing Cedar
Dam, on the LiGevre River in QuDebec, was completed and both units were
commissioned in December 2005.
- The overhaul of each of the four generating units and conversion of
the generators to 60 Hz at the Weldon Generating Station, located on
the Penobscot River in Maine, was completed and commissioned at the
end of November 2005.
- The successful refinancing of long-term debt related to the QuDebec
facilities, extending the average duration of the Fund's long-term
debt and reducing annual financing costs.
"We are pleased with above average hydrology conditions during the fourth
quarter, enabling the Fund to end the year with reservoirs well above expected
levels and putting the Fund in a good position to start 2006," said Richard
Legault, President and Chief Executive Officer.
<<
2005 Financial and Operating Highlights
-------------------------------------------------------------------------
(x)Unaudited Three months Twelve months
CDN$ millions, ended December 31 ended December 31
(unless otherwise noted) 2005 2004(1) 2005 2004(1)
-------------------------------------------------------------------------
Generation (GWh) 894 704 3,517 3,719
-------------------------------------------------------------------------
Revenue $ 39.2 $ 30.2 $ 154.5 $ 166.6
Operating expenses 11.7 12.1 46.5 48.5
Interest expenses 10.5 9.8 38.5 39.3
-------------------------------------------------------------------------
Income before
non-cash and special
items 17.0 8.3 69.5 78.8
-------------------------------------------------------------------------
Distribution to
unitholders $ 14.7 $ 14.4 $ 58.7 $ 57.9
-------------------------------------------------------------------------
(x) Unaudited, selected annual financial information is attached to
this press release. It is expected that the Fund's audited financial
statements with accompanying notes will be filed, and the annual
report distributed, in March 2006.
(1) All prior period comparatives in this document have been restated to
reflect the adoption of Accounting Guideline 15, Consolidation of
Variable Interest Entities.
Tax Information
Tax information will be forwarded to the Canadian Depository for
Securities (CDS) Limited and will be posted on the Fund's Web site by no later
than February 28, 2006. Brokerage firms receive the tax information from the
Canadian Depository System, and have the responsibility for preparing the
required tax slips (T5013) for mailing to unitholders by March 31, 2006.
Great Lakes Hydro Income Fund
CONSOLIDATED BALANCE SHEET
UNAUDITED
AS AT DECEMBER 31
THOUSANDS 2005 2004(1)
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 57,886 $ 18,276
Accounts receivable 9,931 6,424
Due from related parties 3,597 1,788
Prepaid expenses and maintenance materials 5,367 4,635
-------------------------------------------------------------------------
76,781 31,123
Power generating assets 1,036,103 1,035,361
Other assets 17,872 13,407
-------------------------------------------------------------------------
$ 1,130,756 $ 1,079,891
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts and other payables $ 28,661 $ 20,570
Distribution payable to unitholders 4,888 4,828
Credit and hydrology reserve facilities 4,204 36,804
Current portion of long-term debt - 63,200
-------------------------------------------------------------------------
37,753 125,402
Long-term debt 620,000 450,000
Due to holder of non-controlling interest 21,501 21,501
Deferred credits 38,715 34,858
-------------------------------------------------------------------------
717,969 631,761
Non-controlling interest (16,379) (16,316)
Unitholders' equity 429,166 464,446
-------------------------------------------------------------------------
$ 1,130,756 $ 1,079,891
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) All prior period comparatives in this document have been restated
to reflect the adoption of Accounting Guideline 15, Consolidation of
Variable Interest Entities.
Great Lakes Hydro Income Fund
CONSOLIDATED STATEMENT OF UNITHOLDERS' EQUITY
UNAUDITED
YEARS ENDED DECEMBER 31
THOUSANDS 2005 2004
-------------------------------------------------------------------------
Trust units, end of year $ 573,308 $ 573,308
-------------------------------------------------------------------------
Deficit, beginning of year (77,788) (69,509)
Net income 28,070 49,653
Distributions to unitholders (58,656) (57,932)
-------------------------------------------------------------------------
Deficit, end of year (108,374) (77,788)
Currency translation adjustment, end of year (35,768) (31,074)
-------------------------------------------------------------------------
Unitholders' equity, end of year $ 429,166 $ 464,446
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Great Lakes Hydro Income Fund
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
YEARS ENDED DECEMBER 31
THOUSANDS, EXCEPT PER TRUST UNIT AMOUNTS 2005 2004(1)
-------------------------------------------------------------------------
Revenues $ 154,456 $ 166,596
Expenses
Operating and maintenance 44,087 45,505
Selling and administrative expenses 2,336 2,964
-------------------------------------------------------------------------
108,033 118,127
Interest and financing fees 35,019 35,809
Yield maintenance fee 10,197 -
Interest on due to holder of
non-controlling interest 3,510 3,510
-------------------------------------------------------------------------
Income before non-cash items 59,307 78,808
Gain on disposal of power generating assets (1,880) -
Depreciation and amortization 27,699 27,314
Non-controlling interest 600 543
Future taxes 4,818 1,298
-------------------------------------------------------------------------
Net income $ 28,070 $ 49,653
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net income per trust unit $ 0.58 $ 1.03
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of units outstanding 48,276 48,276
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) All prior period comparatives in this document have been restated to
reflect the adoption of Accounting Guideline 15, Consolidation of
Variable Interest Entities.
Great Lakes Hydro Income Fund
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
YEARS ENDED DECEMBER 31
THOUSANDS 2005 2004(1)
-------------------------------------------------------------------------
Operating activities
Net income $ 28,070 $ 49,653
Add (deduct) non-cash items:
Gain on disposal of power
generating assets (1,880) -
Depreciation and amortization 27,699 27,314
Non-controlling interest 600 543
Future taxes 4,818 1,298
-------------------------------------------------------------------------
Income before non-cash items 59,307 78,808
Change in non-cash working capital 905 18,185
-------------------------------------------------------------------------
60,212 96,993
-------------------------------------------------------------------------
Investing activities
Additions to power generating assets (34,845) (31,623)
Proceeds on disposal of power
generating assets 1,885 -
-------------------------------------------------------------------------
(32,960) (31,623)
-------------------------------------------------------------------------
Financing activities
Financing fees (6,794) (3,731)
Credit facility - drawdown 8,000 11,000
Credit facility - repayment (39,800) (600)
Hydrology reserve facility - repayment (800) -
Bridge facility - drawdown 125,000 -
Bridge facility - repayment (125,000) -
Long-term debt - issuance 225,000 169,099
Long-term debt - repayment (113,738) (169,099)
Distributions to non-controlling interest (662) (636)
Distributions to unitholders (58,596) (57,932)
-------------------------------------------------------------------------
12,610 (51,899)
-------------------------------------------------------------------------
Effect of foreign exchange rate
changes on cash and cash equivalents (252) (864)
-------------------------------------------------------------------------
Increase in cash and cash equivalents 39,610 12,607
Cash and cash equivalents, beginning of year 18,276 5,669
-------------------------------------------------------------------------
Cash and cash equivalents, end of year $ 57,886 $ 18,276
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents is comprised of:
Cash $ 13,605 $ 15,860
Short-term investments 44,281 2,416
-------------------------------------------------------------------------
$ 57,886 $ 18,276
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary information:
Interest paid during the year $ 45,962 $ 36,645
Income taxes paid during the year $ 555 $ 217
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) All prior period comparatives in this document have been restated to
reflect the adoption of Accounting Guideline 15, Consolidation of
Variable Interest Entities.
>>
Forward-Looking Statements
This new release may contain forward-looking statements concerning the
Great Lakes Hydro Income Fund ("Fund") business and operations. Forward
looking statements can be identified by the use of words, such as "plans",
"expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not anticipate",
or "believes" or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved. Forward looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results or performance to be materially different from any future results or
performance expressed or implied by the forward statements.
Examples of such statements include, but are not limited to factors
relating to production and the business, financial position, operations and
prospects for the Fund. They include (1) the Fund's level of generation; (2)
the Fund's cost of production; (3) interest rates as they bear on the Fund's
indebtedness; (4) planned capital expenditures; (5) the impact of changes in
the Canadian dollar - U.S. dollar on the Fund's costs and results of
operations; the negotiation of collective agreements with its unionized
employees; (6) business and economic conditions; (7) the legislation governing
air emissions, discharges into water, waste, hazardous materials and workers'
health and safety as well as the impact of future legislation and regulations
on expenses, capital expenditures and restrictions on operations; (8)
regulatory investigations, claims, lawsuits and other proceedings; and (9)
reliance on the guaranteed price for electricity by Brookfield Power Inc.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied in the forward-looking statements
contained herein.
These forward-looking statements represent our views as of the date of
this news release. While the Fund anticipates that subsequent events and
developments may cause the Fund's views to change, the Fund disclaims any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing the Fund's views as of
any date subsequent to February 7, 2006, the date of this news release.
-------------------------------------------------------------------------
Fourth Quarter Results and Conference Call
A conference call for investors and media to review fourth quarter and
year results for 2005 will be held on February 8, 2006 at 10:00 a.m. (EST) To
participate in the conference call, please dial 416-644-3425 or 1-800-814-3911
toll free in North America at 9:50 a.m. (EST) For those unable to participate
in the Conference Call, a taped rebroadcast will also be available until
midnight February 10, 2006. To access the rebroadcast, please call
1-877-289-8525, toll free in North America, and enter the passcode
21172705 (pound key).
About Great Lakes Hydro Income Fund
Great Lakes Hydro is a premier Canadian income fund and the largest power
income fund in North America with 995 megawatts of power generating capacity
and an average annual production of 3,786 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages 25 high quality hydroelectric generating stations located on seven
river systems in four distinct geographic regions across North America:
QuDebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises all the power operations of Brookfield
Asset Management, owns 50.1% of the Fund's outstanding units. Great Lakes
Hydro Income Fund units are listed for trading on the Toronto Stock Exchange
under the symbol GLH.UN.
-------------------------------------------------------------------------
%SEDAR: 00013106EF
