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, 2007. 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 2007, power generation totaled 1,064 gigawatthours (GWh), reflecting above-average water inflows in Quebec and New England together with a return to more normal generation in Ontario. Generation in British Columbia was negatively impacted by the overhaul on an operating unit at the Lois facility. Total power generated in this quarter was slightly lower than in the same quarter of 2006, when water inflows were unusually strong.
Revenues in the first quarter of $48.2 million and income before non-cash items of $24.8 million were in line with the results for the same period a year earlier. Year over year, distributions to unitholders increased to $15.1 million or 10.417 cents per unit to reflect the added contribution from the Carmichael generating station in Ontario that was acquired in July 2006.
"We continued to deliver strong results in the first quarter of 2007 that are driven by strong water inflows in many of our watersheds. Our focus in the year will remain on building the underlying value of our portfolio through our capital improvement program and maintaining the Fund's track record of operating excellence," said Richard Legault, President and Chief Executive Officer.
Financial and Operating Highlights ------------------------------------------------------------------------- Unaudited Three months ended March 31 CDN $ millions, except where noted 2007 2006 ------------------------------------------------------------------------- Revenues $ 48.2 $ 48.8 Income before non-cash items 24.8 25.4 Distribution 15.1 15.0 Per Unit Income before non-cash items 0.51 0.53 Distribution 0.31 0.31 Power generated (GWh) 1,064 1,140 Average price (cents/KWh) 4.5 4.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- In 2007, the Fund expects to spend a total of $43.7 million on sustaining capital expenditures and enhancement initiatives, up slightly from our year-end forecast due to the timing of some projects. In the first quarter, $6.5 million was spent on our capital program, including the High Falls project in Quebec; the Wells generating station in Ontario; the Lois facility in B.C.; and the Millinocket generating station in Maine. Over the next three years, incremental annual generation and cash flow from enhancement initiatives carried out under our capital program are expected to total 63 GWh and $2.5 million, respectively. The capital program is funded by cash flow generated from operations in excess of cash distributions, current liquidity and a short-term credit facility. CONFERENCE CALL A conference call for investors and media to review the first quarter results for 2007 will be held on Tuesday, May 8, 2007 at 10:00 a.m. (ET). To participate in the conference call, please dial 416-644-3417 or 1-800-732-9303 toll-free in North America, at 9:50 a.m. (ET). For those unable to participate in the conference call, a taped rebroadcast will also be available until midnight May 10, 2007. To access this rebroadcast, please call 1-877-289-8525 toll-free in North America, and enter the passcode 21225766(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. (ET) on Tuesday, May 8th, 2007 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, 2006 April 28, 2006 10.33 cents April 28, 2006 May 31, 2006 10.33 cents May 31, 2006 June 30, 2006 10.33 cents June 30, 2006 July 31, 2006 10.33 cents July 31, 2006 August 31, 2006 10.33 cents August 31, 2006 September 29, 2006 10.417 cents September 30, 2006 October 31, 2006 10.417 cents October 31, 2006 November 30, 2006 10.417 cents November 30, 2006 December 29, 2006 10.417 cents December 29, 2006 January 31, 2007 10.417 cents January 31, 2007 February 28, 2007 10.417 cents February 28, 2007 March 30, 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", "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 1,015 megawatts of power generating capacity and an average annual production of 3,874 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 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.
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