OAKVILLE, ON, March 3, 2022 /PRNewswire/ - Algonquin Power & Utilities Corp. (TSX: AQN) (NYSE: AQN) ("AQN" or the "Company") today announced financial results for the fourth quarter and year-ended December 31, 2021. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted.
"We are pleased that the Company has successfully delivered on many of its strategic priorities in 2021, including the continued execution of several exciting new renewable projects and a further advancement of sustainability initiatives. Despite weaker weather conditions, we are pleased to report solid fourth quarter operating results from the Company's diversified and resilient business model," said Arun Banskota, President and Chief Executive Officer of AQN. "Looking forward, we remain confident that the Company's $12.4 billion capital expenditure plan from 2022 through 2026 will continue to drive long term shareholder value."
Fourth Quarter and Full Year Financial Highlights
All amounts in U.S. $ millions except per share information | Three months ended December 31 | Twelve months ended December 31 | |||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||
Revenue | $ | 594.8 | $ | 491.3 | 21% | $ | 2,285.5 | $ | 1,677.0 | 36% | |||
Net earnings attributable to shareholders | 175.6 | 504.2 | (65)% | 264.9 | 782.5 | (66)% | |||||||
Per share | 0.27 | 0.84 | (68)% | 0.41 | 1.38 | (70)% | |||||||
Cash provided by operating activities | 126.5 | 174.0 | (27)% | 157.5 | 505.2 | (69)% | |||||||
Adjusted Net Earnings1 | 136.3 | 127.0 | 7% | 449.6 | 365.8 | 23% | |||||||
Per share | 0.21 | 0.21 | —% | 0.71 | 0.64 | 11% | |||||||
Adjusted EBITDA1 | 297.6 | 253.1 | 18% | 1,076.9 | 869.5 | 24% | |||||||
Adjusted Funds from Operations1 | 221.2 | 179.3 | 23% | 757.9 | 600.2 | 26% | |||||||
Dividends per share | 0.1706 | 0.1551 | 10% | 0.6669 | 0.6063 | 10% |
1. Please refer to "Non-GAAP Measures" at the end of this document for further details. |
Fourth Quarter Highlights
Subsequent Events
Other 2021 Highlights
Outlook
AQN will file its Annual Consolidated Financial Statements, Annual MD&A and Annual Information Form, each for the year ended December 31, 2021, with the applicable Canadian securities regulatory authorities. AQN will also file its Form 40-F for the year ended December 31, 2021 with the U.S. Securities and Exchange Commission. Copies of these documents and other supplemental information on AQN is made available on its web site at www.AlgonquinPowerandUtilities.com and in its corporate filings on SEDAR at www.sedar.com (for Canadian filings) and EDGAR at www.sec.gov/edgar (for U.S. filings). A hard copy of AQN's Annual Consolidated Financial Statements for the year ended December 31, 2021 can be obtained free of charge upon request to InvestorRelations@APUCorp.com.
Earnings Conference Call
AQN will hold an earnings conference call at 10:00 a.m. eastern time on Friday, March 4, 2022 hosted by President and Chief Executive Officer, Arun Banskota and Chief Financial Officer, Arthur Kacprzak.
Date: | Friday, March 4, 2022 | |
Time: | 10:00 a.m. ET | |
Conference Call: | Toll Free Dial-In Number | (888) 330-2454 |
Toll Dial-In Number | (240) 789-2714 | |
Event Passcode | 5079453 | |
Webcast: | https://event.on24.com/wcc/r/3574115/C5B9380DE4222125A72CF92BB4EAFA6D | |
Presentation also available at: www.algonquinpowerandutilities.com |
About Algonquin Power & Utilities Corp. and Liberty
Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility with over $16 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, Algonquin is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. Algonquin is a global leader in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. Algonquin owns, operates, and/or has net interests in over 4 GW of installed renewable energy capacity.
Algonquin is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution, and transmission businesses, and the pursuit of accretive acquisitions and value enhancing recycling of assets.
Algonquin's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common shares, Series 2018-A subordinated notes, Series 2019-A subordinated notes and equity units are listed on the New York Stock Exchange under the symbols AQN, AQNA, AQNB, and AQNU, respectively.
Visit AQN at www.algonquinpowerandutilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute ''forward-looking information'' within the meaning of applicable securities laws in each of the provinces of Canada and the respective policies, regulations and rules under such laws and ''forward-looking statements'' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, ''forward-looking statements"). The words "will", "expects", "intends", "estimates", "plans", "targets" and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements in this news release include, but are not limited to, statements regarding: the expected performance and growth of AQN, including expectations regarding 2022 Adjusted Net Earnings per share; capital expenditure plans; the purchase price for, and closing of, the Kentucky Power Acquisition; the expected combined rate base of Kentucky Power and Kentucky TransCo at closing of the Kentucky Power Acquisition; the Company's integration of Kentucky Power and Kentucky TransCo; the expected generating capacity of renewable energy facilities; the expected customer benefits resulting from the Company's completed Midwest "greening the fleet" initiative; the Company's net zero by 2050 target; and the expected use of proceeds from completed offerings. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in AQN's Annual MD&A and Annual Information Form for the year ended December 31, 2021, each of which is or will be available on SEDAR and EDGAR. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, AQN undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
Non-GAAP Measures
AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with U.S. GAAP, while other measures do not have a standardized meaning under U.S. GAAP. These non-GAAP measures include non-GAAP financial measures and non-GAAP ratios, each as defined in Canadian National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure. AQN's method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies.
The terms "Adjusted Net Earnings", "Adjusted EBITDA" and "Adjusted Funds from Operations", which are used in this news release, are non-GAAP financial measures. An explanation of each of these non-GAAP financial measures can be found in the section entitled "Caution Concerning Non-GAAP Measures" in the Annual MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable U.S. GAAP measure, in each case, can be found below. In addition, "Adjusted Net Earnings" is presented in this news release on a per share basis. Adjusted Net Earnings per share is a non-GAAP ratio and is calculated by dividing Adjusted Net Earnings by the weighted average number of common shares outstanding during the applicable period.
Reconciliation of Adjusted EBITDA to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings.
Three months ended December 311 | Twelve months ended December 31 | ||||||||||
(all dollar amounts in $ millions) | 2021 | 2020 | 2021 | 2020 | |||||||
Net earnings (loss) attributable to shareholders | $ | 175.6 | $ | 504.2 | $ | 264.9 | $ | 782.5 | |||
Add (deduct): | |||||||||||
Net earnings attributable to the non-controlling interest, exclusive of HLBV2 | 2.3 | 3.1 | 16.1 | 14.9 | |||||||
Income tax expense (recovery) | 1.8 | 51.1 | (43.4) | 64.6 | |||||||
Interest expense | 50.1 | 45.3 | 209.6 | 181.9 | |||||||
Other net losses4 | 11.9 | 16.6 | 22.9 | 61.3 | |||||||
Pension and post-employment non-service costs | 4.9 | 4.7 | 16.3 | 14.1 | |||||||
Change in value of investments carried at fair value3 | (61.0) | (464.0) | 122.4 | (559.7) | |||||||
Impacts from the Market Disruption Event on the Senate Wind Facility | — | — | 53.4 | — | |||||||
Costs related to tax equity financing | 0.5 | — | 5.7 | — | |||||||
Loss (gain) on derivative financial instruments | (0.3) | 0.8 | 1.7 | (1.0) | |||||||
Realized loss on energy derivative contracts | — | (0.2) | (0.1) | (1.1) | |||||||
Loss (gain) on foreign exchange | 1.0 | 3.5 | 4.4 | (2.1) | |||||||
Depreciation and amortization | 110.8 | 88.0 | 403.0 | 314.1 | |||||||
Adjusted EBITDA | $ | 297.6 | $ | 253.1 | $ | 1,076.9 | $ | 869.5 |
1 | Amounts for the three months ended December 31, 2021 and 2020 are derived by subtracting the Company's results for the nine months ended September 30, 2021 and 2020 from the Company's 2021 and 2020 annual results, respectively. |
2 | HLBV represents the value of net tax attributes earned during the period primarily from electricity generated by certain U.S. wind power and U.S. solar generation facilities. HLBV earned in the three and twelve months ended December 31, 2021 amounted to $34.4 million and $95.3 million, respectively, as compared to $20.6 million and $69.7 million during the same period in 2020. |
3 | See Note 8 in the annual consolidated financial statements. |
4 | See Note 19 in the annual consolidated financial statements. |
Reconciliation of Adjusted Net Earnings to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net Earnings and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to consolidated net earnings in accordance with U.S. GAAP.
The following table shows the reconciliation of net earnings to Adjusted Net Earnings exclusive of these items:
Three months ended December 311 | Twelve months ended December 31 | ||||||||||
(all dollar amounts in $ millions except per share information) | 2021 | 2020 | 2021 | 2020 | |||||||
Net earnings (loss) attributable to shareholders | $ | 175.6 | $ | 504.2 | $ | 264.9 | $ | 782.5 | |||
Add (deduct): | |||||||||||
Loss (gain) on derivative financial instruments | (0.3) | 0.8 | 1.7 | (1.0) | |||||||
Realized loss on energy derivative contracts | — | (0.2) | (0.1) | (1.1) | |||||||
Other net losses3 | 11.9 | 16.6 | 22.9 | 61.3 | |||||||
Loss (gain) on foreign exchange | 1.0 | 3.5 | 4.4 | (2.1) | |||||||
Change in value of investments carried at fair value2 | (61.0) | (464.0) | 122.4 | (559.7) | |||||||
Impacts from the Market Disruption Event on the Senate Wind Facility | — | — | 53.4 | — | |||||||
Costs related to tax equity financing and other adjustments | 0.5 | — | 5.7 | 1.0 | |||||||
Adjustment for taxes related to above | 8.6 | 66.1 | (25.7) | 84.9 | |||||||
Adjusted Net Earnings | $ | 136.3 | $ | 127.0 | $ | 449.6 | $ | 365.8 | |||
Adjusted Net Earnings per common share | $ | 0.21 | $ | 0.21 | $ | 0.71 | $ | 0.64 |
1 | Amounts for the three months ended December 31, 2021 and 2020 are derived by subtracting the Company's results for the nine months ended September 30, 2021 and 2020 from the Company's 2021 and 2020 annual results, respectively. |
2 | See Note 8 in the annual consolidated financial statements. |
3 | See Note 19 in the annual consolidated financial statements. |
Reconciliation of Adjusted Funds from Operations to Cash Flows from Operating Activities
The following table is derived from and should be read in conjunction with the consolidated statement of operations and consolidated statement of cash flows. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Funds from Operations and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to cash flows from operating activities in accordance with U.S. GAAP.
The following table shows the reconciliation of cash flows from operating activities to Adjusted Funds from Operations exclusive of these items:
Three months ended December 311 | Twelve months ended December 31 | ||||||||||
(all dollar amounts in $ millions) | 2021 | 2020 | 2021 | 2020 | |||||||
Cash flows from operating activities | $ | 126.5 | $ | 174.0 | $ | 157.5 | $ | 505.2 | |||
Add (deduct): | |||||||||||
Changes in non-cash operating items | 84.4 | (2.8) | 522.0 | 77.5 | |||||||
Production based cash contributions from non-controlling interests | — | — | 4.8 | 3.4 | |||||||
Impacts from the Market Disruption Event on the Senate Wind Facility | — | — | 53.4 | — | |||||||
Costs related to tax equity financing | 0.5 | — | 5.7 | — | |||||||
Acquisition-related costs | 9.8 | 8.1 | 14.5 | 14.1 | |||||||
Adjusted Funds from Operations | $ | 221.2 | $ | 179.3 | $ | 757.9 | $ | 600.2 |
1 | Amounts for the three months ended December 31, 2021 and 2020 are derived by subtracting the Company's results for the nine months ended September 30, 2021 and 2020 from the Company's 2021 and 2020 annual results, respectively. |
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SOURCE Algonquin Power & Utilities Corp.