TransAlta's Third Quarter Earnings in Line With Expectations.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Oct. 18, 2001 TransAlta TransAlta Corporation TSX: TA NYSE: TAC (formerly:Calgary Power) is a Canadian energy company based in Calgary, Alberta. It operates 51 power plants in Canada, the United States, Mexico, and Australia. Corporation (NYSE NYSE See: New York Stock Exchange :TAC 1. TAC - Translator Assembler-Compiler. For Philco 2000. 2. TAC - Terminal Access Controller. )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TA.) today announced earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $33.4 million ($0.20 per share) for the quarter ended Sept. 30, 2001, up from $22.1 million ($0.13 per share) last year. Higher earnings came from the Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. Generation plants, Independent Power Projects (IPP (Internet Printing Protocol) A protocol for printing and managing print jobs over the Internet using HTTP. Initially conceived by Novell, Xerox and others, the IETF made it a standard in 2000 that includes authentication and encryption. See printing protocol and LPD. ) due to the Poplar Poplar, city, England Poplar, former metropolitan borough, SE England. See Tower Hamlets. poplar, in botany poplar: see willow. Creek and Pierce Pierce may refer to: Places
1 City (1990 pop. 14,274), Clinton and Marion counties, S Ill., in an oil, natural gas, coal, farm, and fruit region; inc. 1859. plant. "We remain focused on meeting our goals in a market which has experienced a major change in the last quarter," says Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Snyder Snyder, city (1990 pop. 12,195), seat of Scurry co., NW Tex., in a prairie and mesquite region; inc. 1907. Oil production is the city's main industry; natural gas is also refined and processed. , TransAlta's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The third quarter results demonstrate our ability to deliver consistent earnings and maintain a strong balance sheet." Net earnings applicable to common shareholders were $41.4 million ($0.25 per share), compared to $316.1 million ($1.87 per share) in 2000, which included the gain on disposal of the Alberta Distribution & Retail (D&R) operations.
TransAlta consolidated financial highlights
---------------------------------------------------------------------
(in millions except per share amounts)
3 months ended 9 months ended
September 30 September 30
2001 2000 2001 2000
----------------------------------------------------
Per Per Per Per
Share Share Share Share
Electricity
Production (GWh)11,413 11,134 33,166 29,821
Revenue $590.7 $341.5 $1,959.0 $931.8
Earnings from
continuing
operations* $ 33.4 $0.20 $ 22.1 $0.13 $136.3 $0.81 $96.3 $ 0.57
Earnings from
discontinued
operations $ 8.0 $0.05 $ 31.6 $0.19 $ 31.8 $0.19 $78.9 $ 0.47
Gains on disposal
of discontinued
operations - - $262.4 $1.55 - - $284.7 $ 1.68
---------------------------------------------------------------------
Net earnings- $ 41.4 $0.25 $316.1 $1.87 $168.1 $1.00 $459.9 $ 2.72
---------------------------------------------------------------------
-applicable to common shareholders net of preferred securities
distributions
Continuing operations include results from the Generation, IPP and Energy Marketing businesses. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. include net earnings from New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , Alberta D&R operations, the Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located Composter and the Transmission business. The first three discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses were sold on March 31, 2000, Aug. 31, 2000 and June June: see month. 29, 2001, respectively. The sale of the Transmission business was announced July July: see month. 4, 2001 and is expected to close in the first half of 2002. TransAlta's strategy is to build on its core strengths - a low-cost operator of generation assets and a successful marketer of the output. In the third quarter, TransAlta: - formed a strategic alliance with MidAmerican Energy Holdings Company MidAmerican Energy Holdings Company is a holding company controlled by Berkshire Hathaway. MidAmerican holds the following companies:
adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. generation assets in target markets throughout Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the US and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. ; - listed its shares on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. ; - signed an agreement to sell its Alberta-based Transmission assets to AltaLink for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $850 million; - sold its Fort Nelson power plant to BC Hydro BC Hydro and Power Authority is one of the largest electric utilities in Canada, serving more than 1.7 million customers[2] in an area containing over 94 per cent of British Columbia's population is mandated to provide, "reliable power, at low cost, for generations. for 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 $20.5 million; and - disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of half of its 60 per cent interest in the Fort Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. 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. facility to TransAlta Power, LP for approximately $35 million. Additional generating capacity TransAlta has more than 1,400 MW of new capacity under construction in Canada, the U.S. and Mexico, and has announced an additional 900 MW. Meanwhile the company continues to seek opportunities to acquire or expand existing facilities and build new power plants. Wabamun outage out·age n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. The 300 MW Wabamun unit shut down in August 2000 due to cracks in its boiler boiler, device for generating steam. It consists of two principal parts: the furnace, which provides heat, usually by burning a fuel, and the boiler proper, a device in which the heat changes water into steam. tubing returned to service in June 2001. TransAlta's position is that under the force majeure [French, A superior or irresistible power.] An event that is a result of the elements of nature, as opposed to one caused by human behavior. The term force majeure article of the PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia , it should not be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to repay the cost of obtaining an alternative source of electricity during the period of repair and as such, no specific amount has been provided for any related potential obligations arising in 2001. The issue is currently in binding arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the , with a decision expected in the fourth quarter of 2001. California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). receivable In the fourth quarter of 2000, TransAlta provided $29 million US against the $58 million US owing from the California Independent System Operator (CISO See CSO. ) and the California Power Exchange (CalPX) as at Jan. 31, 2001. No change has been made to the provision due to continuing uncertainty in California. Approximately $5 million US has been collected since January January: see month. 31 and TransAlta remains confident that the remaining balance will be collected. TransAlta continues to sell power on reduced credit terms Credit Terms The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period. to the California Water & Resources Department, a government body. Normal course issuer bid TransAlta announced a normal course issuer bid in February February: see month. 2001 to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to three million shares for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. . To September September: see month. 30, 1,202,500 shares have been purchased on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the program. TransAlta purchased for cancellation 1,631,200 of its common shares through a previously announced normal course issuer bid that expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in February 2001. All currency is expressed in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents except where noted. TransAlta is Canada's largest non-regulated electric generation and marketing company, with more than $7 billion in assets and 8,000 megawatts of capacity. As one of North America's lowest cost operators, our growth is focused on developing coal and gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- generation in Canada, the U.S., and Mexico. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including statements regarding the business and anticipated financial performance of TransAlta Corporation. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and general economic conditions in geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. areas where TransAlta Corporation operates.
TRANSALTA CORPORATION
Consolidated Statements of Earnings and Retained Earnings
(in millions except earnings per common share)
Unaudited Unaudited
-----------------------------------------
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
---------------------------------------------- -------------------
Revenues $ 590.7 $ 341.5 $1,959.0 $ 931.8
Fuel and purchased power 263.8 129.2 1,045.9 282.2
---------------------------------------------- -------------------
Gross margin 326.9 212.3 913.1 649.6
---------------------------------------------- -------------------
Operating expenses
Operations, maintenance
and administration 147.8 75.0 359.9 238.3
Depreciation and
amortization 109.8 50.9 210.7 147.2
Taxes, other than income
taxes 4.1 4.5 14.1 18.1
---------------------------------------------- -------------------
261.7 130.4 584.7 403.6
---------------------------------------------- -------------------
Operating income 65.2 81.9 328.4 246.0
Other income (expense) (1.6) 1.2 (1.8) 0.5
Net interest charges (12.4) (41.7) (75.7) (78.1)
---------------------------------------------- -------------------
Earnings from continuing
operations before regulatory
decisions, income taxes and
non-controlling interests 51.2 41.4 250.9 168.4
Prior period regulatory
decisions (Note 8) - 17.8 - 44.1
---------------------------------------------- -------------------
Earnings from continuing
operations before income
taxes and non-controlling
interests 51.2 59.2 250.9 212.5
Income taxes 10.8 30.5 89.4 90.7
Non-controlling interests 3.7 3.3 15.6 15.9
---------------------------------------------- -------------------
Earnings from continuing
operations 36.7 25.4 145.9 105.9
Earnings from discontinued
operations (Note 3) 8.0 31.6 31.8 78.9
Gain on disposal of
discontinued operations
(Note 3) - 262.4 - 284.7
---------------------------------------------- -------------------
Net earnings 44.7 319.4 177.7 469.5
Preferred securities
distributions, net of tax 3.3 3.3 9.6 9.6
---------------------------------------------- -------------------
Net earnings applicable to
common shareholders $ 41.4 $ 316.1 $ 168.1 $ 459.9
Common share dividends 41.8 44.1 126.7 132.3
Adjustment arising from normal
course issuer bid 9.9 4.3 20.7 6.1
Retained earnings
Beginning of period 857.9 777.1 826.9 723.3
---------------------------------------------- -------------------
End of period $ 847.6 $1,044.8 $ 847.6 $1,044.8
---------------------------------------------- -------------------
Weighted average common
shares outstanding in the
period 168.8 168.6 168.8 168.8
---------------------------------------------- -------------------
Basic earnings per common share
Continuing operations $ 0.20 $ 0.13 $ 0.81 $ 0.57
Discontinued operations 0.05 0.19 0.19 0.47
------------------ -------------------
Net earnings from
operations 0.25 0.32 1.00 1.04
Gain on disposal of
discontinued operations - 1.55 - 1.68
------------------ -------------------
Net earnings $ 0.25 $ 1.87 $ 1.00 $ 2.72
------------------ -------------------
------------------ -------------------
Diluted earnings per common
share
Continuing operations $ 0.20 $ 0.21 $ 0.79 $ 0.75
Discontinued operations $ 0.05 $ 0.10 $ 0.19 $ 0.26
Net earnings from
operations $ 0.25 $ 0.31 $ 0.98 $ 1.01
Gain on disposal of
discontinued operations - $ 1.53 - $ 1.66
Net earnings $ 0.25 $ 1.84 $ 0.98 $ 2.67
------------------ -------------------
------------------ -------------------
SEE ACCOMPANYING NOTES.
TRANSALTA CORPORATION Consolidated Statements of Cash Flows (in
millions except cash flow per common share)
Unaudited Unaudited
-----------------------------------------
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
---------------------------------------------- -------------------
Operating activities
Net earnings $ 44.7 $ 319.4 $ 177.7 $ 469.5
Depreciation and
amortization 128.0 77.7 257.0 249.5
Non-controlling
interests 3.7 3.2 15.6 18.9
Gain on sale of assets (8.5) (262.4) (7.5) (284.9)
Future income taxes
(recovery) 15.3 (21.8) 6.7 (21.9)
Unrealized (gain) loss from
risk management activities (25.6) 0.4 (12.3) (9.1)
Other non-cash items 6.0 2.0 18.2 -
---------------------------------------------- -------------------
163.6 118.5 455.4 422.0
Change in non-cash operating
working capital balances (99.8) (153.7) 121.5 (235.4)
---------------------------------------------- -------------------
Cash flow from (used in)
operating activities 63.8 (35.2) 576.9 186.6
---------------------------------------------- -------------------
Investing activities
Additions to capital assets (357.7) (202.9) (827.5) (506.0)
Acquisitions - (92.3) (9.8) (887.3)
Proceeds on sale of capital
assets 44.1 - 201.4 -
Disposals - 699.2 - 1,342.6
Restricted investments - - - 86.8
Long-term receivables (32.2) 3.3 (66.6) 9.0
Other (1.3) (7.7) (8.3) 5.0
---------------------------------------------- -------------------
Cash flow from (used in)
investing activities (347.1) 399.6 (710.8) 50.1
---------------------------------------------- -------------------
Financing activities
Net increase (decrease) in
short-term debt 425.4 (155.5) 69.7 146.2
Net issuance repayment of
long-term debt 71.6 (220.5) 373.0 (20.9)
Redemption of preferred shares
of a subsidiary (122.1) (0.4) (122.1) (146.8)
Dividends to subsidiary's
non-controlling common
shareholders - (0.8) - (7.3)
Dividends to subsidiary's
non-controlling preferred
shareholders (3.3) (2.2) (8.3) (12.6)
Distributions to subsidiary's
non-controlling limited
partner (7.7) (4.5) (20.3) (18.0)
Distributions on preferred
securities, net of taxes (3.5) (2.4) (10.2) (9.1)
Net redemption of common
shares (14.2) (3.2) (16.2) (10.3)
Dividends on common shares (40.4) (42.2) (120.9) (126.8)
Other - 7.2 0.1 6.5
---------------------------------------------- -------------------
Cash flow from (used in)
financing activities 305.8 (424.5) 144.8 (199.1)
---------------------------------------------- -------------------
Cash flow from (used in)
operating, investing and
financing activities 22.5 (60.1) 10.9 37.6
Effect of translation on
foreign currency cash (3.1) (5.8) (3.2) (5.4)
---------------------------------------------- -------------------
Increase (decrease) in cash 19.4 (65.9) 7.7 32.2
Cash at beginning of period 42.1 173.4 53.8 75.3
---------------------------------------------- -------------------
Cash at end of period $ 61.5 $ 107.5 $ 61.5 $ 107.5
---------------------------------------------- -------------------
Cash flow per common share used
in operating activities $ 0.38 $ (0.20) $ 3.42 $ 1.11
---------------------------------------------- -------------------
SEE ACCOMPANYING NOTES.
TRANSALTA CORPORATION
Consolidated Balance Sheets
(in millions)
-----------------------------
September 30 December 31
2001 2000
(Unaudited) (Audited*)
---------------------------------------------------------------------
ASSETS
Current Assets
Cash $ 61.5 $ 53.8
Accounts receivable 1,046.1 1,473.7
Future income tax assets 22.5 30.3
Income taxes receivable 137.6 153.9
Materials and supplies at average cost 130.6 91.3
---------------------------------------------------------------------
1,398.3 1,803.0
---------------------------------------------------------------------
Investments (Note 4) 35.7 228.0
Long-term receivables 306.9 232.9
Capital assets (Note 3)
Cost 8,343.5 7,762.1
Accumulated depreciation (2,611.5) (2,485.0)
---------------------------------------------------------------------
5,732.0 5,277.1
Future income tax assets 8.0 9.1
Other assets 45.9 77.0
---------------------------------------------------------------------
Total assets $7,526.8 $7,627.1
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 543.0 $ 472.7
Accounts payable and accrued liabilities 1,151.7 1,437.9
Income taxes payable - 41.4
Dividends payable 43.3 44.8
Current portion of long-term debt (Note 5) 4.2 79.6
---------------------------------------------------------------------
1,742.2 2,076.4
---------------------------------------------------------------------
Long-term debt (Note 5) 2,377.0 2,121.8
Deferred credits and other long-term
liabilities 492.3 455.1
Future income tax liabilities 376.2 349.4
Non-controlling interests
Preferred shares of a subsidiary (Note 6) - 121.6
Other 280.6 253.4
---------------------------------------------------------------------
280.6 375.0
Preferred securities 285.6 292.0
Common shareholders' equity
Common shares (Note 7) 1,161.7 1,150.3
Retained earnings 847.6 826.9
Cumulative translation adjustment (36.4) (19.8)
---------------------------------------------------------------------
1,972.9 1,957.4
---------------------------------------------------------------------
Total liabilities and shareholders' equity $7,526.8 $7,627.1
---------------------------------------------------------------------
Contingencies (Note 9)
SEE ACCOMPANYING ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. NOTES. - 2000 amounts derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the audited annual financial statements NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 1. Accounting policies The accounting policies used in the preparation of these interim consolidated financial statements conform with those used in the corporation's annual consolidated financial statements, except for the calculation of diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . Effective Jan. 1, 2001, the corporation retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin adopted the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. standard requiring the use of the "treasury stock method" rather than the "imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's earnings method" in calculating diluted earnings per share. The impact of this change on current and prior period diluted earnings per share was not material. These interim consolidated financial statements do not include all of the disclosures included in the corporation's annual consolidated financial statements. Accordingly, these interim consolidated financial statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the corporation's annual consolidated financial statements. 2. Acquisitions and disposals A. Energy Marketing - United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. On June 1, 2001, the corporation purchased the remaining 50 per cent interest of Merchant Energy Group of the Americas A·mer·i·cas , the See America. (MEGA (1) Million (10 to the 6th power). Abbreviated "M". In communications, mega typically refers to 1,000,000. In storage, mega typically refers to 1,048,576. See MB, binary values and space/time. (2) A prefix attached to words that means a very large size or quantity. ) for cash consideration of US$0.3 million (Cdn $0.4 million). The purchase included negative working capital of US$5.0 million, capital and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of US$9.2 million and a future income tax liability of US$3.9 million. B. IPP - Canada In August 2001, the corporation sold its Fort Nelson gas-fired facility for cash proceeds of $44.1 million. The gain on disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of was $1.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ($0.01 per common share). The book value of the assets was $42.8 million. In September 2001, the corporation sold its 60 per cent interest in its Fort Saskatchewan cogeneration facility to TransAlta Cogeneration, L.P. (TA Cogen), a limited partnership owned 50.01 per cent by the corporation and 49.99 per cent by TransAlta Power, L.P. (TA Power), a publicly owned Publicly owned can refer to:
3. Discontinued operations Effective Dec. 31, 1999, TransAlta adopted formal plans to pursue divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). opportunities relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc both its New Zealand and Alberta distribution and retail (D&R) operations. On Mar. 31, 2000, TransAlta sold its interest in New Zealand for total proceeds of NZ$832.5 million (approximately Cdn$605 million) resulting in an after-tax gain of $22.3 million ($0.13 per common share). On Aug. 31, 2000, TransAlta sold its Alberta D&R operation for proceeds of $857.3 million and recognized an after-tax gain of $262.4 million ($1.55 per common share). Effective Dec. 31, 2000, the corporation adopted a formal plan to pursue divestiture opportunities related to its composter facility in Edmonton, Alberta which commenced commercial operations in August 2000. In the fourth quarter of 2000, the corporation recorded a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the assets of $17.9 million ($0.11 per common share). On June 29, 2001, the facility was sold for cash proceeds of $97.0 million. On July 4, 2001, the corporation signed a purchase and sale agreement for the disposal of its Transmission operations for cash proceeds of approximately $850 million. The expected closing date is the first quarter of 2002, subject to regulatory approval. For reporting purposes, the results of the New Zealand, Alberta D&R, Edmonton Composter and Transmission operations have been presented as discontinued operations in the statement of earnings.
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
---------------------------------------------- -------------------
Transmission, prior to
measurement date $ 0.3 $ 13.3 $ 23.4 $ 34.2
Transmission, subsequent to
measurement date 7.7 - 7.7 -
Edmonton Composter operation
earnings - 0.6 0.7 0.6
Alberta D&R operation earnings - 17.7 - 33.3
New Zealand operations earnings - - - 10.8
Gain on disposition of New Zealand
operations - - - 22.3
Gain on disposition of Alberta
D&R operation - 262.4 - 262.4
------------------ -------------------
$ 8.0 $ 294.0 $ 31.8 $ 363.6
------------------ -------------------
At Sept. 30, 2001, all of the corporation's discontinued
operations have been sold except for those of the Transmission
operation. Balance sheet amounts are as follows:
September 30, 2001 December 31, 2000
--------------- -------------------------------------
Transmission Transmission Edmonton Total
Composter
--------------- -------------------------------------
Current assets $ 41.2 $ 52.6 $ 2.4 $ 55.0
Capital assets 618.4 622.3 119.7 742.0
Other assets 2.9 2.0 - 2.0
Current liabilities (10.6) (12.1) (3.9) (16.0)
--------------- -------------------------------------
Total net assets $ 651.9 $ 664.8 $ 118.2 $ 783.0
--------------- -------------------------------------
--------------- -------------------------------------
4. Investments In February 2001, the corporation increased its investment in a wind power generation company by $1.5 million. On Apr. 10, 2001, the corporation purchased a minority interest in a Western Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or company for $2.9 million. On May 3, 2001, the corporation purchased an interest in an independent power producer focused on serving the distributed generation and oilfield marketplaces for $5.0 million. 5. 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. On Sept. 26, 2001, the corporation renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. its medium term note facility to a maximum amount of $1.5 billion. At Sept. 30, 2001, no amounts had been issued under the agreement. 6. Non-controlling interest On Sept. 10, 2001, the corporation's subsidiary redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. its preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. for $122.1 million. 7. Common shares issued and outstanding TransAlta Corporation is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to issue an unlimited number of voting common shares without nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. or par value. At Sept. 30, 2001, the corporation had 168.6 million (Dec. 31, 2000 - 168.6 million) common shares issued and outstanding plus outstanding employee stock options to purchase an additional 2.0 million shares (2000 - 2.4 million). 8. Prior period regulatory decisions Financial results for 2000 were affected by EUB EUB Energy and Utilities Board (Alberta, Canada) EUB EU–Büro (Bundesministerium für Bildung und Forschung; German ministry of Science) EUB Electric Upright Bass EUB European Union Bank EUB Essential User Bypass decisions related to other reporting periods. The impact of such regulatory decisions is recorded when the effect of such decisions is known without adjustment to the financial statements of prior periods. On Feb. 1, 2000, the EUB announced an amendment to its 1999 Phase I decision concerning a 1999 revenue requirement issue that partially offset the effect of its original decision which was recorded in 1999. This amendment increased pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings from continuing operations by $30.6 million ($16.4 million after-tax; $0.10 per common share) and was recorded in the first quarter of 2000. The decision also included a reduction in earnings of approximately $0.8 million related to the discontinued Alberta D&R operation. In September 2000, TransAlta negotiated a settlement resulting in the receipt of $17.8 million ($9.9 million after-tax; $0.06 per common share) under the Temporary Suspension suspension, in vehicles suspension, in automobiles, system of springs used to suspend the frame, body, engine, and power train above the wheels. Its principal purpose is to lessen the jarring of the automobile that is caused by irregularities in the roads Regulation (TSR (Terminate and Stay Resident) Refers to a program that remains in memory when the user exits it in order that it be immediately available at the press of a hotkey. ) to compensate the corporation for obligation payments incurred as a result of Alberta generation production outages occurring in 1999 and 2000. 9. Other contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. In August 2000, a single thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. generating unit was shut down due to safety concerns related to possible corrosion fatigue Corrosion fatigue is fatigue in a corrosive environment. It is the mechanical degradation of a material under the joint action of corrosion and cyclic loading. Nearly all engineering structures experience some form of alternating stress and are exposed to harmful environments cracks within the waterwall tubing of its boiler. Repairs were completed late in the second quarter of 2001 and the unit returned to service in June 2001. The corporation filed for relief of approximately $18 million of obligation payments occurring from the date of shut down to the end of 2000 and the corporation will record such relief upon receipt of a regulatory decision. Commencing Jan. 1, 2001, the unit is subject to the terms of a power purchase arrangement (PPA). Under the PPA's force majeure article, the corporation is not obligated to supply electricity during the period of repair, subject to confirmation by the administrator of the PPAs. Should such confirmation not occur, the corporation might be obligated to repay the cost of obtaining an alternative source of electricity to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. its PPA supply obligations during the affected period. No specific amount has been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in these financial statements for this potential liability as neither the outcome nor amount was determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. at the reporting date. 10. Comparative Figures Certain comparative figures have been reclassified to conform with the current period's presentation.
11. Segment Disclosures
(in millions of dollars)
a) Segment financial information
Unaudited
---------------------------------------
Energy
Generation IPP Marketing Totals
---------------------------------------------------------------------
i) Earnings information
3 MONTHS ENDED SEPTEMBER 30, 2001
Revenues $ 341.2 $ 204.0 $ 424.0 $ 969.2
Trading purchases - - (378.5) (378.5)
---------------------------------------------------------------------
Net segment revenues 341.2 204.0 45.5 590.7
Fuel and purchased power 223.6 40.2 - 263.8
---------------------------------------------------------------------
Gross margin 117.6 163.8 45.5 326.9
Operations, maintenance and
administration 52.9 73.3 7.5 133.7
Depreciation and amortization 34.1 67.1 2.9 104.1
Taxes, other than income taxes 3.3 0.8 - 4.1
---------------------------------------------------------------------
EBIT before corporate
allocations $ 27.3 $ 22.6 $ 35.1 $ 85.0
Corporate allocations 13.6 4.7 1.5 19.8
---------------------------------------------------------------------
EBIT $ 13.7 $ 17.9 $ 33.6 $ 65.2
-----------------------------------------------------------
Other expenses (1.6)
Net interest charges (12.4)
---------------------------------------------------------------------
Earnings from continuing operations before income taxes and
non-controlling interests $ 51.2
---------------------------------------------------------------------
3 MONTHS ENDED SEPTEMBER 30, 2000
Revenues $ 246.7 $ 83.8 $ 326.6 $ 657.1
SPP payments and trading
purchases (9.4) - (306.2) (315.6)
---------------------------------------------------------------------
Net segment revenues 237.3 83.8 20.4 341.5
Fuel and purchased power 103.0 26.2 - 129.2
---------------------------------------------------------------------
Gross margin 134.3 57.6 20.4 212.3
Operations, maintenance and
administration 22.4 32.0 1.5 55.9
Depreciation and amortization 33.4 14.2 0.7 48.3
Taxes, other than income taxes 4.0 0.5 - 4.5
Prior period regulatory decisions
(Note 8) (17.8) - - (17.8)
---------------------------------------------------------------------
EBIT before corporate
allocations $ 92.3 $ 10.9 $ 18.2 $ 121.4
Corporate allocations 13.8 6.2 1.7 21.7
---------------------------------------------------------------------
EBIT $ 78.5 $ 4.7 $ 16.5 $ 99.7
-----------------------------------------------------------
Other income 1.2
Net interest charges (41.7)
---------------------------------------------------------------------
Earnings from continuing operations before income taxes and
non-controlling interests $ 59.2
---------------------------------------------------------------------
a) Segment financial information
Unaudited
---------------------------------------
Energy
Generation IPP Marketing Totals
---------------------------------------------------------------------
i) Earnings information
9 MONTHS ENDED SEPTEMBER 30, 2001
Revenues $1,385.3 $ 415.3 $2,167.8 $3,968.4
Trading purchases - - (2,009.4) (2,009.4)
---------------------------------------------------------------------
Net segment revenues 1,385.3 415.3 158.4 1,959.0
Fuel and purchased power 895.2 150.7 - 1,045.9
---------------------------------------------------------------------
Gross margin 490.1 264.6 158.4 913.1
Operations, maintenance and
administration 165.8 113.2 34.6 313.6
Depreciation and amortization 100.7 85.7 7.0 193.4
Taxes, other than income taxes 11.7 2.4 - 14.1
---------------------------------------------------------------------
EBIT before corporate
allocations $ 211.9 $ 63.3 $ 116.8 $ 392.0
Corporate allocations 43.9 15.0 4.7 63.6
---------------------------------------------------------------------
EBIT $ 168.0 $ 48.3 $ 112.1 $ 328.4
-----------------------------------------------------------
Other expenses (1.8)
Net interest charges (75.7)
---------------------------------------------------------------------
Earnings from continuing operations before income taxes and
non-controlling interests $ 250.9
---------------------------------------------------------------------
9 MONTHS ENDED SEPTEMBER 30, 2000
Revenues $ 655.1 $ 255.8 $ 639.7 $1,550.6
SPP payments and trading
purchases (21.9) - (596.9) (618.8)
---------------------------------------------------------------------
Net segment revenues 633.2 255.8 42.8 931.8
Fuel and purchased power 179.3 102.9 - 282.2
---------------------------------------------------------------------
Gross margin 453.9 152.9 42.8 649.6
Operations, maintenance and
administration 117.1 67.2 4.9 189.2
Depreciation and amortization 93.2 41.5 2.0 136.7
Taxes, other than income taxes 16.8 1.3 - 18.1
Prior period regulatory decisions
(Note 8) (44.1) - - (44.1)
---------------------------------------------------------------------
EBIT before corporate
allocations $ 270.9 $ 42.9 $ 35.9 $ 349.7
Corporate allocations 38.9 16.3 4.4 59.6
---------------------------------------------------------------------
EBIT $ 232.0 $ 26.6 $ 31.5 290.1
-----------------------------------------------------------
Other income 0.5
Net interest charges (78.1)
---------------------------------------------------------------------
Earnings from continuing operations before income taxes and
non-controlling interests $ 212.5
---------------------------------------------------------------------
b) Reconciliations
Unaudited Unaudited
-----------------------------------------
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
---------------------------------------------- -------------------
i) Operations, maintenance and administration
Operations, maintenance and
administration for reportable
segments $ 133.7 $ 55.9 $ 313.6 $ 189.2
Corporate operations,
maintenance and
administration 14.1 19.1 46.3 49.1
-------- -------- -------- ---------
Consolidated total $ 147.8 $ 75.0 $ 359.9 $ 238.3
-------- -------- -------- ---------
ii) Depreciation and amortization (D&A)
D&A expense for reportable
segments $ 104.1 $ 48.3 $ 193.4 $ 136.7
D&A on corporate assets 5.7 2.6 17.3 10.5
-------- -------- -------- ---------
Consolidated total $ 109.8 $ 50.9 $ 210.7 $ 147.2
-------- -------- -------- ---------
iii) D&A per statement of cash flows
D&A expense for reportable
segments $ 104.1 $ 48.3 $ 193.4 $ 136.7
D&A on corporate assets 5.7 2.6 17.3 10.5
Discontinued operations
- Alberta Distribution and Retail - 13.5 - 51.7
- New Zealand - - - 8.8
- Edmonton Composter - 0.7 1.5 0.7
- Transmission 11.2 11.6 33.6 34.6
Other 7.0 1.0 11.2 6.5
-------- -------- -------- ---------
Consolidated total $ 128.0 $ 77.7 $ 257.0 $ 249.5
-------- -------- -------- ---------
iv) Additions to capital assets
Total additions to capital
assets for reportable
segments $ (327.0) $ (168.1) $ (773.9) $ (408.7)
Other corporate additions to
capital assets (19.4) 16.5 (21.4) (3.9)
Discontinued operations
- Alberta Distribution and Retail - (49.0) - (46.4)
- New Zealand - - - (8.9)
- Transmission (11.3) (2.3) (32.2) (38.1)
-------- -------- -------- ---------
Consolidated total $ (357.7) $ (202.9) $ (827.5) $ (506.0)
-------- -------- -------- ---------
September December
30, 2001 31, 2000-
(unaudited)
BALANCE SHEETS ---------------------------
i) Assets
Total assets for reportable segments $ 6,300.9 6,053.4
Other corporate assets 563.4 774.7
Discontinued operations
- Edmonton Composter - 122.1
- Transmission 662.5 676.9
--------- ---------
Consolidated total $ 7,526.8 $ 7,627.1
--------- ---------
ii) Accounts payable and other current liabilities
Total accounts payable and other current
liabilities for reportable segments $ 1,084.9 1,376.1
Other corporate accounts payable and other
current liabilities 56.2 45.8
Discontinued operations
- Edmonton Composter - 3.9
- Transmission 10.6 12.1
--------- ----------
Consolidated total $ 1,151.7 $ 1,437.9
--------- ----------
- 2000 amounts derived from the audited annual financial statements
Unaudited
---------------------------------------
Energy
Generation IPP Marketing Totals
---------------------------------------
ii) Selected cash flow information
3 MONTHS ENDED SEPTEMBER 30, 2001
Depreciation and amortization $ 34.1 $ 67.1 $ 2.9 $ 104.1
Additions to segment capital
assets $ (211.9) $ (111.2) $ (3.9) $ (327.0)
Acquisitions $ - $ - $ - $ -
3 MONTHS ENDED SEPTEMBER 30, 2000
Depreciation and amortization $ 33.4 $ 14.2 $ 0.7 $ 48.3
Additions to segment capital
assets $ (101.2) $ (44.4) $ (22.5) $ (168.1)
Acquisitions $ (92.0) $ (0.3) $ - $ (92.3)
---------------------------------------
Energy
Generation IPP Marketing Totals
---------------------------------------
9 MONTHS ENDED SEPTEMBER 30, 2001
Depreciation and amortization $ 100.7 $ 85.7 $ 7.0 $ 193.4
Additions to segment capital
assets $ (499.6) $ (232.5) $ (41.8) $ (773.9)
Acquisitions - (9.4) $ (0.4) $ (9.8)
9 MONTHS ENDED SEPTEMBER 30, 2000
Depreciation and amortization $ 93.2 $ 41.5 $ 2.0 $ 136.7
Additions to segment capital
assets $ (145.6) $ (238.2) $ (24.9) $ (408.7)
Acquisitions $ (868.7) $ (18.6) $ - $ (887.3)
iii) Selected balance sheet information
SEPTMBER 30, 2001
Segment assets $3,830.8 $1,796.2 $ 673.9 $6,300.9
Segment accounts payable $ 303.7 $ 161.4 $ 619.8 $1,084.9
DECEMBER 31, 2000
Segment assets $3,275.0 $1,689.7 $1,088.7 $6,053.4
Segment accounts payable $ 155.1 $ 269.4 $ 951.6 $1,376.1
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