STOCK SYMBOL: GLH.UN/TSX
Recent acquisitions contribute to increase in generation, revenues and
income before non-cash items
GATINEAU, QC, May 12 /CNW Telbec/ - Great Lakes Hydro Income Fund (the "Fund") today reported its financial and operating results for the first quarter ended March 31, 2009. 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.
First quarter revenues of $58.0 million and income before non-cash items of $29.7 million increased by 13% and 10% respectively, from the same period a year earlier. Generation for the first quarter of 2009 was 1,163 gigawatt hours (GWh) as compared with 1,161 GWh during the same period last year and a long-term average of 1,051 GWh.
Generation from hydroelectricity in the quarter was 1,081 GWh, a decrease of 7% as compared to the exceptionally strong first quarter last year but still 11% above long-term average. Hydroelectric generation in Quebec and New England remained strong while Ontario and British Columbia were lower compared to last year. Revenues from New England also benefited from the appreciation of the U.S. dollar relative to the Canadian dollar.
In February 2009, the Fund acquired Prince Wind farm and a 50% joint venture interest in the Pingston Hydro station. Prince Wind delivered generation of 82 GWh and revenues of $7.6 million since its acquisition. As expected, Pingston Hydro did not contribute materially to results in the first quarter as it operates predominantly during the summer.
First quarter distributions to unitholders totaled $16.2 million or 31 cents per unit as compared to $15.1 million or 31 cents per unit in the first quarter of 2008. Total distributions increased as a result of the additional units issued in January 2009.
FINANCIAL AND OPERATING HIGHLIGHTS
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Three months ended
Unaudited March 31
CDN $ millions, except otherwise noted 2009 2008
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Revenues $ 58.0 $ 51.2
Income before non-cash items 29.7 26.9
Distribution 16.2 15.1
Per unit
Income before non-cash items 0.56 0.56
Distribution 0.31 0.31
Power generated (GWh) 1,163 1,161
Average price (cents/KWh) 49.9 44.1
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"Our new assets have provided the Fund with greater geographic, resource
and cash flow diversification and will be instrumental in mitigating the
impact of taxation on the Fund starting in 2011," said Richard Legault,
President and CEO. "With highly desirable power assets, long-duration stable
cash flows and a strong financial position, we are very well positioned in the
current environment and remain focused on operational excellence and growing
our renewable power portfolio."
In the first quarter of 2009, the Fund invested $4.7 million in capital
expenditures and $0.5 million in major maintenance. In Quebec, the overhaul of
the last of the three 25 MW generating units at the High Falls generating
station on the Lievre River was completed in February 2009. In Ontario, work
was ongoing on the refurbishment and rewind of the second unit at the Aubrey
Falls generating station. Spending on this project totaled $3.1 million during
the first quarter of 2009 with an additional $3.0 million expected in 2009.
The Fund currently expects to invest a total of $17.3 million in capital
expenditures and $5.3 million in major maintenance during 2009.
The refinancing of $75 million of Powell River Energy Inc. bonds which
mature in July 2009 is progressing. The Fund has obtained a commitment for a
one-year bridge facility in the event it is unable to complete the refinancing
before maturity due to the current state of the credit markets.
At March 31, 2009, the Fund had a strong liquidity position with cash and
short-term investments of $25.5 million, an increase of $16.5 million since
year-end 2008. The increase is primarily due to the bought-deal unit offering
completed in January 2009. The Fund also has access to almost $54 million of
committed credit facilities and hydrology reserve facility.
CONFERENCE CALL
A conference call for investors and media to review the first quarter
results for 2009 will be held on Wednesday, May 13, 2009 at 10:00 a.m. (EDT).
To participate in the conference call, please dial 416-644-3414 or
1-800-732-9303 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 on May 16, 2009. To access this rebroadcast, please
call 1-877-289-8525 toll-free in North America, and enter the passcode
21303240(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.
DISTRIBUTIONS
The schedule below sets out the cash distribution history for the last
twelve months:
RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT
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March 31, 2009 April 30, 2009 10.417 cents
February 28, 2009 March 31, 2009 10.417 cents
January 31, 2009 February 27, 2009 10.417 cents
December 31, 2008 January 30, 2009 10.417 cents
November 30, 2008 December 31, 2008 10.417 cents
October 31, 2008 November 28, 2008 10.417 cents
September 30, 2008 October 31, 2008 10.417 cents
August 31, 2008 September 30, 2008 10.417 cents
July 31, 2008 August 29, 2008 10.417 cents
June 30, 2008 July 31, 2008 10.417 cents
May 30, 2008 June 30, 2008 10.417 cents
April 30, 2008 May 30, 2008 10.417 cents
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and information concerning the business, operations and financial condition of the Great Lakes Hydro Income Fund ("Fund"). Forward-looking statements can be identified by the use of words, such as "pending", "expected", "will", "allow", "sustain", "stand to benefit", "look forward", or variations of such words and phrases or state that certain actions, events or results "will" be taken, occur or be achieved. Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based on reasonable assumptions and expectations, it can give no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements and information involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information.
Examples of such statements include, but are not limited to factors relating to production and the business, financial position, distribution policy, operations and prospects for the Fund. They include but are not limited to: changes in hydrology and wind conditions; equipment failure; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc. and the Fund; energy rate fluctuations; failure by the Fund to discover liabilities associated with acquisitions; changes in the general economy; failure of transmission systems or adequate transmission capacity; water rights; changes in the Canadian/US dollar exchange rate; changes to regulations and increases in regulatory costs; failure by the Fund to renew, maintain or obtain necessary governmental permits; inability to generate or sell electricity; failure by the Fund to maintain dam safety; inadequate insurance; failure by the Fund to comply with health, safety and environmental regulations; threat of legal action and claims against the Fund; labour disruptions; inability of the Fund to successfully integrate acquisitions; changes in technology; inability of the Fund to access and refinance capital on desirable terms and changes in interest rates; inability of the Fund to withdraw cash from subsidiaries; risks related to the nature of the Trust Units, tax matters and investment eligibility, the market for Trust Units and Trust Unit prices, and unitholder liability.
These factors and other risk factors, as described under "Risk Factors" in the Fund's Annual Information Form, represent risks that the Fund believes are material. Other factors not presently known to the Fund or that the Fund presently believes are not material, could also cause actual results to differ materially from those expressed in the forward-looking statements and information contained and incorporated by reference herein. Accordingly, undue reliance should not be placed on these forward-looking statements or information. The Fund disclaims any obligation to update publicly or to revise any of the forward-looking statements or information contained in this news release, whether as a result of new information, future events or otherwise, except as required by applicable law.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income fund and one of the largest power income funds in North America with 1,260 megawatts of power generating capacity and average annual production of 4,539 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from environmentally friendly and renewable resources. The Fund indirectly owns or holds interests in 27 high quality hydroelectric generating stations and one wind farm in four distinct geographic regions across North America: Quebec, Ontario, British Columbia and New England.
Brookfield Renewable Power, which comprises all the power operations of Brookfield Asset Management, owns 50.01% of the Fund's outstanding units on a fully exchanged basis.
Great Lakes Hydro Income Fund units are listed for trading on the Toronto Stock Exchange under the symbol GLH.UN.
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