Highest Quarterly Generation in Fund's History
STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QC, May 7 /CNW Telbec/ - Great Lakes Hydro Income Fund today reported its financial and operating results for the first quarter ended March 31, 2008. The Fund provides additional information on its strategy and results in its Letter to Unitholders and Supplemental Information available at www.greatlakeshydro.com under Investor Relations/Financial Highlights.
In the first quarter of 2008, power generation was a record 1,161 gigawatthours (GWh), representing increases of 97 GWh and 194 GWh over the first quarter of 2007 and the long-term average, respectively. The improvement is mainly due to above average water inflows in the Quebec, Ontario and New England regions. Generation levels increased year-over-year in each of the geographic regions. In Quebec, generation exceeded last year's levels by 8% despite the continued outage at the Cedar Dam station, which is expected to be back in regular service in early summer 2008. Generation in British Columbia was favorably impacted by the return to service of the Lois facility at the end of 2007 following completion of its overhaul.
First quarter revenues of $51.2 million and income before non-cash items of $26.9 million were above the $48.2 million and $24.8 million, respectively, reported for the same period a year earlier. First quarter distributions to unitholders totaled $15.1 million or 31 cents per unit.
"We enjoyed excellent inflows in most of our watersheds in the first quarter," said Richard Legault, President and Chief Executive Officer. "Our financial condition is strong and we remain focused on stable performance and long-term value creation through solid execution and continued investment in the productivity and longevity of our assets."
Financial and Operating Highlights ------------------------------------------------------------------------- Unaudited Three months CDN $ millions, except per ended March 31 unit and where noted 2008 2007 ------------------------------------------------------------------------- Revenues $ 51.2 $ 48.2 Income before non-cash items 26.9 24.8 Distribution 15.1 15.1 Per Unit Income before non-cash items 0.56 0.51 Distribution 0.31 0.31 Power generated (GWh) 1,161 1,064 Average price (cents/KWh) 4.4 4.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- In 2008, the Fund expects to spend a total of $19.9 million on sustaining capital expenditures and enhancement initiatives, up modestly from our year-end forecast but well below the more capital-intensive levels of recent years. In the first quarter, $1.9 million was spent on our capital program and major maintenance, including the High Falls project in Quebec, the Wells generating station in Ontario and the Millinocket generating station in Maine. At quarter end, the Fund had a current cash balance of $12.5 million, an increase of $7.2 million from the balance at the end of 2007. CONFERENCE CALL A conference call for investors and media to review the first quarter results for 2008 will be held on Thursday, May 8, 2008 at 10:00 a.m. (EDT). To participate in the conference call, please dial 416-644-3422 or 1-800-591-7539 toll-free in North America, at 9:50 a.m. (EDT). For those unable to participate in the conference call, a taped rebroadcast will also be available until midnight May 10, 2008. To access this rebroadcast, please call 1-877-289-8525 toll-free in North America, and enter the passcode 21269660(number sign). The conference call will also be webcast live on the Fund's website at www.greatlakeshydro.com, where it will be archived for three months. ANNUAL MEETING OF UNITHOLDERS Unitholders are invited to attend the Fund's annual meeting to be held at 2 p.m. (EDT) on Thursday, May 8th, 2008 at the Hockey Hall of Fame located at 30 Yonge Street, Toronto, Ontario. For those unable to attend, a live webcast and slide presentation will be available at www.greatlakeshydro.com. DISTRIBUTIONS The schedule below sets out the cash distribution history for the last twelve months: RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT ------------------------------------------------------------------------- March 31, 2008 April 30, 2008 10.417 cents February 29, 2008 March 31, 2008 10.417 cents January 31, 2008 February 29, 2008 10.417 cents December 31, 2007 January 31, 2008 10.417 cents November 30, 2007 December 31, 2007 10.417 cents October 31, 2007 November 30, 2007 10.417 cents September 30, 2007 October 31, 2007 10.417 cents August 31, 2007 September 28, 2007 10.417 cents July 31, 2007 August 31, 2007 10.417 cents June 30, 2007 July 31, 2007 10.417 cents May 31, 2007 June 29, 2007 10.417 cents April 30, 2007 May 31, 2007 10.417 cents
FORWARD-LOOKING STATEMENTS
This news 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 "believe", "expect", "well positioned", "long-term", "grow", "expand", "enhance" or variations of such words and phrases or state that certain actions, events or results "will" be taken, occur or be achieved. Forward looking statements involve assumptions, 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. More details relating to risk factors can be found in the Fund's annual information form in the section entitled Risk Factors.
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; (6) the negotiation of collective agreements with its unionized employees; (7) business and economic conditions; (8) 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; (9) regulatory investigations, claims, lawsuits and other proceedings; and (10) 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, and as a such, you are cautioned not to place undue reliance on these forward-looking statements.
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 the date of this news release.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income fund. We are the largest power income fund in North America with 1,021 megawatts of power generating capacity and average annual production of 3,912 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from environmentally friendly hydroelectric resources. The Fund owns, operates and manages 26 high quality hydroelectric generating stations located on eight river systems in four distinct geographic regions across North America: Quebec, Ontario, British Columbia and New England.
Brookfield Renewable Power Inc., which comprises all the power operations of Brookfield Asset Management Inc., 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