BORALEX: 39 Percent in Revenues - Cash Flow Up 11 Percent in the First Quarter.MONTREAL--(BUSINESS WIRE)--Feb. 16, 1998-- BORALEX (ME:BLX BLX Business Line Expert BLX Basic Launch Complex BLX British Legion of Xbox (gaming clan) .A.) For the first quarter ended December December: see month. 31, 1997, Boralex Inc. had sales of $6.7 million compared to $4.8 million for the corresponding quarter in 1996. In addition to an average price increase of 3 percent for electricity, this 39 percent growth reflects the full (100 percent) incorporation since October October: see month. 3rd of the revenues from the Kingsey Kingsey is a small village in Buckinghamshire, England. It is located near the border with Oxfordshire, about two miles east of Thame, a mile south of Haddenham. The village name is of 12th century origin and means 'king's island', referring to a piece of dry land that Falls cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. plant for which Boralex acquired the 50 percent holding of Novergaz (1994) Inc. Boralex already owned 50 percent of this operation. Earnings before interests, taxes and depreciation rose 10 percent to $2.7 million for the first quarter, compared to $2.5 million for the corresponding period in 1996. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , however, dropped from 51 percent to 41 percent due to low water availability at our Buckingham Buck·ing·ham , First Duke of Originally George Vil·liers 1592-1628. English courtier and statesman whose military and political policies caused continual friction with Parliament. He was assassinated by a disgruntled naval officer. , Montmorency Montmorency, town, Canada Montmorency (mŏnt'mərĕn`sē), town, S Que., Canada, at the confluence of the St. Lawrence and Montmorency rivers; now part of the municipality of Beauport. and Rimouski Rimouski (rĭm  `skē), town (1991 pop. 30,873), S Que., Canada, on the south shore of the St. Lawrence River, NE of Quebec. power stations. The
consolidation of 100 percent of the revenues coming from the Kingsey
Falls cogeneration plant also reduced the corporations' operating
margin due to the fact that operating margins in the cogeneration
industry are lower than in the hydroelectric industry. Note, however,
that the Kingsey Falls cogeneration plant generates an excellent cash
flow. The price paid for the Novergaz holding was based on this cash
flow from operations Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . The above items also affected net earnings for the quarter, which were $130,901 or $0.00 per share, compared to $339,407 or $0.02 per share for the corresponding quarter last year. Cash Flow and Financial Position Cash flow from operations rose 11 percent in the first quarter to $1.3 million or $0.05 per share compared to $1.2 million or $0.07 per share for the corresponding period last year. During the quarter ended December 31, 1997, Boralex obtained the final $1.3 million of the $5 million in financing for the Rimouski plant. In addition, the acquisition of the Novergaz shares in three of the Corporation's power plants (Kingsey Falls, Buckingham and St-Lambert) resulted in a net outlay of $11.1 million. On December 31, 1997, Boralex had $16.8 million in cash and working capital of $3 million, for a ratio of 1.2:1. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. totalled $71.6 million (including the liability portion of the convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and long-term debt due within one year), compared to $53.9 million a year earlier. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose to $42.5 million from $17.5 million on December 31, 1996. In one year, the ratio of long-term debt to shareholders' equity improved substantially, going from 3.08:1 to 1.68:1. Outlook Boralex is continuing development with a view to achieving its main 1998 and 1999 growth objective totalling a critical mass of 200 MW. Overall, current development projects are on schedule. Included in these is a project to build three hydroelectric power stations This is a list of major hydroelectric power plants in all countries in the world with installed capacity over 100 MW. This is an incomplete list. You can help Name of power station Installed capacity in MW Country in Cuba Cuba (ky `bə, Span. k`bä), officially Republic of Cuba, republic (2005 est. pop. ,
valued at approximately $85 million, for which electricity sales
negotiations are well advanced. In addition, CHEQ CHEQ Chelation Enhanced Quenching (Corporation Hydro
Energie-Que), in which we are a partner, is continuing environmental and
financing studies for two projects, one in Costa Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. and the other in
Guyana Guyana (gīăn`ə, –än`–), officially Co-operative Republic of Guyana, republic (2005 est. pop. 765,000), 83,000 sq mi (214,969 sq km), NE South America. .The Corporation is confident that construction for several projects currently being studied will begin in the next two quarters, with further positive impacts on earnings foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. in 1999. One of these projects was announced today. Boralex has completed the first steps leading to construction of a 22 MW cogeneration plant to supply a paper mill in Thunder Bay Thunder Bay, city (1991 pop. 113,946), SW Ont., Canada, on Thunder Bay inlet of Lake Superior. The city was created in 1970 by the amalgamation of the twin cities of Fort William and Port Arthur and two adjoining townships. , Ontario. The mill is owned by Rolland Inc., a subsidiary of Cascades Inc. The power station should be commissioned early in the summer of 1999 and will be owned and operated by Boralex. While the ice storm, which occurred in Quebec in January, interrupted in·ter·rupt v. in·ter·rupt·ed, in·ter·rupt·ing, in·ter·rupts v.tr. 1. To break the continuity or uniformity of: Rain interrupted our baseball game. 2. certain of the corporation operations there were no major equipment breakdowns. The most positive impact was certainly the recognition by the Quebec public of the importance of Boralex's power plants to the province's overall energy production, due to their flexibility, proximity to consumers, low production costs, and other advantages. The population in and around Kingsey Falls was able to appreciate these benefits as they used energy produced locally by the Corporation's cogeneration plant during the blackout A complete loss of power. See brownout. . The Boralex hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. plants also helped supply Hydro-Quebec subscribers in St-Hyacinthe, St-Lambert, East Angus Angus (ăng`gəs), council area (1993 est. pop. 111,020), 842 sq mi (2,181 sq km), and former county, NE Scotland. Under the Local Government Act of 1973, the county of Angus became part of the Tayside region in 1975. and Buckingham. This recognition should have an impact on deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the energy market, already well underway in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and just beginning in Quebec. -0-
BORALEX INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in dollars, except per share amounts)
For the 3 month periods
ended December 31
(unaudited) 1997 1996
_____________________________________________________________
Revenue 6,660,869 4,782,156
_____________________________________________________________
Operating expenses
Operating costs 3,383,849 1,860,536
Administration 564,232 459,061
_____________________________________________________________
3,948,081 2,319,597
_____________________________________________________________
Earnings before the following 2,712,788 2,462,559
_____________________________________________________________
Financial expenses 1,502,264 1,215,486
Amortization 866,230 513,090
_____________________________________________________________
2,368,494 1,728,576
_____________________________________________________________
Earnings before income taxes
and non-controlling interests 344,294 733,983
Provision for income taxes 125,000 206,500
_____________________________________________________________
219,294 527,483
Non-controlling interests (88,393) (188,076)
_____________________________________________________________
Net earnings for the year 130,901 339,407
_____________________________________________________________
_____________________________________________________________
Net earnings per Class A share $ 0.00 $ 0.02
_____________________________________________________________
_____________________________________________________________
Weighted average number
of Class A shares 19,402,018 16,734,404
_____________________________________________________________
_____________________________________________________________
BORALEX INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(in dollars, except per share amounts)
For the 3 month periods
ended December 31
(unaudited) 1997 1996
_____________________________________________________________
OPERATING ACTIVITIES
Net earnings for the period 130,901 339,407
Items not affecting cash :
Amortization 866,230 513,090
Interest on the
liability component of the
convertible debentures 188,048 -
Deferred income taxes 75,000 172,500
Non-controlling interest 88,393 188,076
Other - 6,000
_____________________________________________________________
Cash flow from operations 1,348,572 1,219,073
Net change in non-cash
operating working capital
balances (1,256,172) (731,605)
_____________________________________________________________
92,400 487,468
_____________________________________________________________
FINANCING ACTIVITIES
Increase on long-term debt 1,350,000 5,500,000
Payments of long-term debt (926,712) (134,622)
Decrease in advances
from a shareholder - (407,500)
Interest payment on
convertible debentures (598,325) -
_____________________________________________________________
(175,037) 4,957,878
_____________________________________________________________
INVESTING ACTIVITIES
Purchase of capital assets (897,725) (2,146,382)
Other assets (514,426) (770,841)
Acquisition of investments (11,112,258) -
_____________________________________________________________
(12,524,409) (2,917,223)
_____________________________________________________________
Net change in cash during
the period (12,607,046) 2,528,123
Cash - Beginning of period 29,450,571 744,080
_____________________________________________________________
Cash - End of period 16,843,525 3,272,203
_____________________________________________________________
_____________________________________________________________
Cash flow from operations
per Class A share $0.05 $0.07
_____________________________________________________________
_____________________________________________________________
BORALEX INC.
CONSOLIDATED BALANCE SHEETS
(in dollars)
As at December 31
(unaudited) 1997 1996
_____________________________________________________________
ASSETS
Current assets
Cash and short-term
investments 16,843,525 3,272,203
Accounts receivable 6,203,981 4,404,237
_____________________________________________________________
23,047,506 7,676,440
Capital assets 94,501,270 67,180,411
Other assets 6,590,197 5,995,786
_____________________________________________________________
124,138,973 80,852,637
_____________________________________________________________
_____________________________________________________________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Advances from a
shareholder - 828,591
Accounts payable and
accrued liabilities 4,006,345 3,684,394
Current portion of
long-term debt 16,046,336 1,712,451
_____________________________________________________________
20,052,681 6,225,436
Long-term debt 55,633,821 52,194,290
Deferred income taxes 3,218,500 1,396,500
Non-controlling interests 2,708,286 3,552,476
Shareholders' Equity
Equity component of the
convertible debentures 10,214,477 -
Capital stock 31,805,721 15,874,721
Retained earnings 505,487 1,609,214
_____________________________________________________________
42,525,685 17,483,935
_____________________________________________________________
124,138,973 80,852,637
CONTACT: Boralex Inc. Mr. Jacques Gauthier Jacques Gauthier is a vertebrate paleontologist and systematist, and one of the founders of the use of cladistics in paleontology. He received a BS in Zoology at San Diego State University in 1973, a Masters of Science at the same institute in 1980, and a PhD in Paleontology , 514/282-2634 or Boralex Inc. Mr. Cyrille Vittecoq, 514/282-2647 |
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