Independent Trustees to review proposed acquisition of Carmichael Falls
STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QuDebec, May 3 /CNW Telbec/ - Great Lakes Hydro Income Fund
(GLH.UN: TSX) today reported strong results for the first quarter ended March
31, 2006; and that the Independent Trustees of the Board will review the
proposed acquisition of Carmichael Falls Generating Station from Brookfield
Power.
Strong Generation - The Fund's power generation output exceeded long-term
average during the first quarter of the year, fuelled by improved inflows in
Quebec, Ontario and New England. The Fund's power generation totalled
1,140 gigawatts hours (GWh), an increase of 24% over the same period last year
and approximately 21% above long-term average for the quarter.
- Revenue from operations totalled $48.8 million for the three months
ended March 31, 2006, compared to $40.5 million for the same period in
2005, an increase of 21%.
- Income before non-cash items totalled $25.4 million for the first
quarter ended March 31, 2006, an increase of 34% compared to the same
period in the prior year.
- Net income reached $16.1 million for the first quarter, an increase of
almost 50% over last year.
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2006 Financial and Operating Highlights
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Unaudited Three months ended March 31
CDN $ millions 2006 2005
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Revenues $ 48.8 $ 40.5
Income before non-cash items 25.4 18.9
Net income 16.1 10.8
Distribution 15.0 14.7
Per unit
Income before non-cash items 0.53 0.39
Net income 0.33 0.22
Distribution 0.31 0.30
Power generated (GWh) 1,140 922
Average price (cents/KWh) 4.3 4.4
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Carmichael Acquisition - The Independent Trustees of the Board will
review the proposed transaction to purchase, from Brookfield Power, the
Carmichael Falls hydroelectric generating station, a 19 megawatt facility
located on the Groundhog River, in Northern Ontario. The proposed transaction
is subject to a number of conditions, including successful completion of due
diligence, and negotiation of a definitive purchase and sale agreement, as
well as regulatory and Independent Trustee approvals. Details of the terms of
the proposed transaction will not be disclosed until the independent committee
has completed the review process. There is no assurance that this transaction
will be completed.
"We believe we are well positioned to capture the opportunity to grow the
Fund with our healthy liquidity position at the end of the first quarter,"
said Richard Legault, President and Chief Executive Officer. "Our commitment
to expand the Fund, in addition to investing in our existing facilities,
enhances the sustainability and stability of distributions for our
unitholders," added Mr. Legault.
DISTRIBUTIONS
Distributions year to date totalled 31 cents per unit for all
unitholders, an increase of 0.6 cents over last year's distribution for the
same period. This is as a result of the increase in distributions from 10.125
cents/unit/month to 10.33 cents/unit/month that took effect January 1, 2006.
The schedule below sets out cash distribution history for the last six
months:
RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT
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March 31, 2006 April 28, 2006 10.33 cents
February 28, 2006 March 31, 2006 10.33 cents
January 31, 2006 February 28, 2006 10.33 cents
December 30, 2005 January 31, 2006 10.125 cents
November 30, 2005 December 30, 2005 10.125 cents
October 31, 2005 November 30, 2005 10.125 cents
>>
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 "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; 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, 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 May 3, 2006, the date of this news release.
Q1 CONFERENCE CALL
A conference call for investors and media to review the first quarter
results for 2006 will be held on May 4, 2006 at 10:00 a.m. (EST). To
participate in the conference call, please dial 416-644-3425 or 1-800-814-4862
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 6, 2006. To access this rebroadcast, please call
1-877-289-8525, toll free in North America, and enter the passcode 21185033
(pound key).
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro Income Fund is a premier Canadian income fund and one
of the largest power income funds in North America with 995 megawatts of power
generating capacity and an average annual production of 3,788 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:
Quebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises the majority of 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
