Boralex Posts an Increase of 20 Percent in Revenues and 71 Percent in Cash Flow From Operations.MONTREAL--(BUSINESS WIRE)--Nov. 18, 1997-- BORALEX(ME:BLX BLX Business Line Expert BLX Basic Launch Complex BLX British Legion of Xbox (gaming clan) .A.) For the fiscal year ended September 30, 1997, Boralex Inc. posted revenues of $18,759,577 compared to revenues of $12,250,933 for the nine-month fiscal year ended September 30, 1996. If we add the results of the last quarter of 1995 to the revenues for the 1996 fiscal year for purposes of comparison on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, revenues for the fiscal year ended September 30, 1997 increased by 20 percent over revenues of $15,609,899 for the twelve-month period ended September 30, 1996. Net earnings for the fiscal year ended September 30, 1997 were $774,191 or $0.03 per share, compared to $1,269,807 or $0.08 per share for the 1996 nine-month fiscal year, and $1,307,479 or $0.08 per share for the comparable twelve months. It should be noted that the 1996 results included non-recurring revenues of $1.9 million. Excluding these non-recurring revenues, net earnings for the comparable twelve months of 1996 would have been $166,941 or $0.01 per share. Earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. reached $8.8 million for the fiscal year ended September 30, 1997, an increase of 25 percent compared to $7.1 million for the equivalent twelve- month period ended September 30, 1996. As a result, the operating profit margin Operating profit margin The ratio of operating profit to net sales. increased from 45.5 percent to 47.1 percent. The increase in profitability is mainly due to a higher average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. per kWh following the indexation of Hydro-Quebec rates and the fact that the Buckingham 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. station benefited from the full rate of the APR-91 program for the whole fiscal year. Also, for the first time, the Kingsey Falls cogeneration plant operated with the maximum capacity premium for the full year. In addition to this, the majority of the power stations of the Corporation increased their productivity during the first nine months of the 1997 fiscal year. Unfortunately, the performance of the Corporation was affected in the last quarter of the 1997 fiscal year by unfavorable hydraulic conditions caused by low levels of precipitation precipitation, in chemistry precipitation, in chemistry, a process in which a solid is separated from a suspension, sol, or solution. In a suspension such as sand in water the solid spontaneously precipitates (settles out) on standing. recorded last summer. Consequently, the Corporation posted a net loss of $56,941 or $0.01 per share for three-month period ended September 30, 1997, compared to net earnings from operations of $257,300 or $0.02 per share for the same quarter in 1996 (excluding non-recurring revenues of $1.7 million). Revenues for the fourth quarter were $4,030,701 compared to $3,861,579 for the corresponding period in 1996. This 4.7 percent increase, which resulted mainly from higher selling prices, could not compensate the increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , depreciation and financing expenses resulting from expansion and refinancing Refinancing An extension and/or increase in amount of existing debt. of the Corporation's operations. It should also be noted that the operations of the St-Lambert power station were interrupted during the fourth quarter because of a mechanical failure. However, the losses incurred as a result of this failure, were entirely absorbed by the Corporation's insurance coverage. Cash flow and changes in financial position The cash flow from operations Cash flow from operations A 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 increased by 71 percent, going from $2.5 million or $0.15 per share in 1996 (12 months), to $4.3 million or $0.20 per share in 1997. During the 1997 fiscal year, Boralex put in place long-term loans at a fixed interest rate for a total of $9.2 million, the proceeds of which were used mainly for the Rimouski and Montmorency 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 . Boralex reimbursed $4.6 million of 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. and a $1.2 million advance to its major shareholder. The Corporation also invested $8.9 million in new capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . Combined with the cash flow from operations, the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $30.8 million from the public issue of April 1997, provided for the cash outflows during the year and increased the Corporation's cash position by $28.7 million. As at September 30, 1997, Boralex had $29.5 million in cash and working capital of $28.3 million for a ratio of 5.5:1. Its total long-term debt was $58.3 million (including the debt 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. ) compared to $47.1 million on September 30, 1996. The shareholders equity was $42.3 million compared to $17.1 million at the end of the 1996 fiscal year. The long-term debt to shareholders equity ratio went from 2.74:1 to 1.38:1. Outlook Boralex expects that revenues will increase by 50 percent in 1997-1998. Other than the additional contribution of the Rimouski hydroelectric power station and of the No. 2 site at Palmer (Massachusetts), this growth will come mainly from the recent acquisition of the 50 percent participation of Novergaz Inc. in the Kingsey Falls cogeneration plant. These developments increased the consolidated production capacity of Boralex from 250 to 380 GWh per year. Boralex expects a more pronounced progression in its operation profits and cash flow mainly because of the gradual reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of its long-term debt and economies of scale resulting from a higher production volume. On the development side, in all probability, given the steps under taken to date, the Corporation is confident it will begin the construction of a cogeneration plant in Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
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 electricity markets in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. .
BORALEX INC.
Consolidated statement of earnings
For the 3 month For the 12 month
periods ended periods ended
September 30 September 30
(unaudited) 1997 1996 1997 1996
$ $ $ $
_____________________________________________________________
Revenues
Energy 3,732,371 3,503,556 17,010,748 14,088,243
Management 223,851 209,433 1,281,743 1,090,464
Oil and gas 74,479 148,590 467,086 431,192
_____________________________________________________________
4,030,701 3,861,579 18,759,577 15,609,899
Operating expenses
Operating
costs 2,069,363 1,829,615 7,955,721 6,813,320
Administration 507,437 545,295 1,974,455 1,699,976
_____________________________________________________________
2,576,800 2,374,910 9,930,176 8,513,296
_____________________________________________________________
Income before
the following
items 1,453,901 1,486,669 8,829,401 7,096,603
_____________________________________________________________
Financial
expenses 1,151,757 902,414 4,751,702 4,384,447
Depreciation 522,549 259,582 2,064,124 2,138,158
Other revenues
and expenses - 1,720,939 - 1,859,863
_____________________________________________________________
1,674,306 (558,943) 6,815,826 4,662,742
Income before
income taxes and
non-controlling
interests (220,405) 2,045,612 2,013,575 2,433,861
Provision for
income taxes (301,000) 942,000 430,500 1,301,440
_____________________________________________________________
80,595 1,103,612 1,583,075 1,132,421
Non-controlling
interests (137,536) 155,302 (808,884) 175,058
_____________________________________________________________
Net earnings
(net loss)
for the period (56,941) 1,258,914 774,191 1,307,479
_____________________________________________________________
_____________________________________________________________
Net earnings
(net loss)
per class
A share (0.01) 0.08 0.03 0.08
_____________________________________________________________
_____________________________________________________________
Cash flow from
operations 188,586 549,257 4,267,212 2,497,112
_____________________________________________________________
_____________________________________________________________
Cash flow from
operations per
class A share 0.01 0.03 0.20 0.15
_____________________________________________________________
_____________________________________________________________
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 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion