TransAlta Power, L.P. Announces Third Quarter Results and Increases Cash Distributions.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. 23, 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. Power, L.P. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TPW TPW The Perfect World (website) TPW Texas Parks & Wildlife TPW Total Precipitable Water TPW Turbo Pascal for Windows (Borland) TPW Toscana Photographic Workshops TPW Technical & Professional Writing .UN.) today announced net income for the nine months ended Sept. 30, 2001 of $8.8 million, compared to $5.1 million reported for the same period in 2000. Net income for the three months ended Sept. 30, 2001 was $1.8 million, compared to $0.6 million in 2000. The increase is primarily due to increased revenue and lower depreciation. TransAlta Power also declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. cash distributions of $0.0615 per unit today for payment on each of November November: see month. 30, December December: see month. 31 and January January: see month. 31 to unitholders of record at the close of business October October: see month. 31, November 30 and December 31, respectively. Cash distributions to date have been fully tax-deferred tax-de·ferred adj. 1. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. 2. and are expected to continue to be so at least through 2003. As a result, unitholders are not required to pay income tax on these distributions in the year of receipt. "We continue to deliver strong results compared to last year," says Ian Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. , president and director. "Our recent acquisition of 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. power plant will enable us to increase cash distributions once again, for a total of $0.7345 per unit this year compared to $0.70 in 2000." In September September: see month. , TransAlta Power, L.P. issued 4.5 million limited partnership units at a price of $8.50 each. 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 the offering were used to fund the acquisition of additional units of TransAlta 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. , L.P., which in turn used the funds to partially finance the acquisition of TransAlta's sixty percent interest in the Fort Saskatchewan Power Plant. Commissioned in 1999, the plant is operated through a joint venture between TransAlta and Air Liquide
TransAlta Power, L.P. financial highlights
for the three months for the nine months
ended September 30 ended September 30
(unaudited) (unaudited)
---------------------------------------------------------------------
(in thousands except where noted)
2001 2000 2001 2000
Net income $ 1,814 $ 590 $ 8,754 $ 5,067
Cash distributions declared $ 5,577 $ 3,848 $ 16,489 $ 14,801
Distribution per unit $ 0.18 $ 0.13 $ 0.55 $ 0.50
Units outstanding 33,988 29,600 33,988 29,600
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TransAlta Power, L.P. owns a 49.99 per cent interest in TransAlta Cogeneration, L.P., which wholly owns three Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. cogeneration facilities and a 60 per cent interest in the Fort Saskatchewan cogeneration plant. TransAlta owns the remaining 50.01 per cent interest in TransAlta Cogeneration, L.P. and is responsible for the operation and maintenance of the plants. The Ontario plants have a total generating capacity of 250 megawatts of electric power. Electricity from the plants is sold to Ontario Electricity Financial Corporation (formerly Ontario Hydro Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies ) under long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts; steam and other thermal energy thermal energy Internal energy of a system in thermodynamic equilibrium (see thermodynamics) by virtue of its temperature. A hot body has more thermal energy than a similar cold body, but a large tub of cold water may have more thermal energy than a cup of boiling produced is supplied to manufacturing plants and other facilities. The Fort Saskatchewan, Alberta Fort Saskatchewan is a city of 14,957 (2006 census) located km ( mi) northeast of downtown Edmonton, Alberta, Canada. The two city's boundaries touch across the North Saskatchewan River. History In 1875, under the command of Inspector W.D. plant has a total generating capacity of 120 megawatts. Electricity and steam from this plant are sold to Dow Chemical under a long-term contract.
TRANSALTA POWER, L.P.
(in thousands except number of units outstanding)
Balance Sheets
Unaudited Audited
------------ ------------
September 30, December 31,
2001 2000
---------------------------------------------------------------------
ASSETS
Current assets
Cash $ 73 $ 443
Due from TransAlta Corporation (Note 3) 36,378 -
Distribution receivable from TransAlta
Cogeneration, L.P. 2,089 5,905
Prepaid expenses 1 5
---------------------------------------------------------------------
38,541 6,353
Investment in TransAlta Cogeneration, L.P.
(Note 3) 272,206 244,716
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$310,747 $251,069
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LIABILITIES AND PARTNERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 40 $ 49
Due to TransAlta Cogeneration, L.P. (Note 3) 35,000 -
Due to TransAlta Energy Corporation 971 826
Distributions payable 2,039 5,899
---------------------------------------------------------------------
38,050 6,774
Partners' equity (Note 3) 272,697 244,295
---------------------------------------------------------------------
$310,747 $251,069
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Statement of Partners' Equity
Number
of Units General Limited
Outstanding Partner Partners Total
---------------------------------------------------------------------
Balance, December 31,
1999 - Audited(1) 29,600,000 $ (2) $256,204 $256,202
Redemption of limited
partnership units (109,100) (1,091) (1,091)
Contributed surplus 371 371
Net income 1 9,512 9,513
Distributions declared (2) (20,698) (20,700)
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Balance, December 31,
2000 - Audited(1) 29,490,900 $ (3) $244,298 $244,295
Subscriptions (Note 3) 4,500,000 38,250 38,250
Issue costs (Note 3) (2,092) (2,092)
Redemption of limited
partnership units (3,200) (32) (32)
Contributed surplus 11 11
Net income 1 8,753 8,754
Distributions declared (2) (16,487) (16,489)
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Balance, September 30,
2001 - Unaudited 33,987,700 $ (4) $272,701 $272,697
---------------------------------------------------------------------
(1)Derived from the audited financial statements
See accompanying notes.
TRANSALTA POWER, L.P.
(in thousands except per unit amounts)
Statements of Earnings
Unaudited
----------------------------------------
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
----------------------------------------------- -------------------
Revenues
Equity income from
TransAlta Cogeneration,
L.P. $ 1,860 $ 680 $ 8,998 $ 5,300
Expenses
Management and administration
expenses 46 90 244 233
------------------------------------------------------------------
Net income $ 1,814 $ 590 $ 8,754 $ 5,067
----------------------------------------------- -------------------
Net income per unit $ 0.06 $ 0.02 $ 0.29 $ 0.17
----------------------------------------------- -------------------
Statements of Distributable Cash
Net income $ 1,814 $ 590 $ 8,754 $ 5,067
Deduct: Equity income from
TransAlta Cogeneration,
L.P. (1,860) (680) (8,998) (5,300)
Deduct: Purchase of TransAlta
Cogeneration, L.P. units (35,000) - (35,000) -
Add: Distributions from
TransAlta Cogeneration,
L.P. 5,628 3,833 16,508 15,196
Add: Proceeds on issuance
of partnership units 36,158 - 36,158 -
----------------------------------------------- -------------------
Cash available for
distribition $ 6,740 $ 3,743 $ 17,422 $ 14,963
----------------------------------------------- -------------------
Cash available for
distribution per unit $ 0.22 $ 0.13 $ 0.56 $ 0.50
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Statements of Cash Flows
----------------------------------------------- -------------------
Operating activities
Net income $ 1,814 $ 590 $ 8,754 $ 5,067
Equity income from TransAlta
Cogeneration, L.P. (1,860) (680) (8,998) (5,300)
Change in non-cash operating
working capital balances 196 82 118 (226)
----------------------------------------------- -------------------
150 (8) (126) (459)
----------------------------------------------- -------------------
Investing activities
Distributions received from
TransAlta Cogeneration, L.P. 7,700 4,488 20,324 18,026
----------------------------------------------- -------------------
Financing activities
Proceeds from issue of
partnership units 36,158 - 36,158 -
Advance to TransAlta
Corporation (36,378) - (36,378) -
Advance from TransAlta
Energy Corporation - - 21 -
Redemption of limited
partnership units - - (21) -
Distributions to unitholders (7,666) (4,144) (20,348) (17,762)
----------------------------------------------- -------------------
(7,886) (4,144) (20,568) (17,762)
----------------------------------------------- -------------------
Increase (decrease) in cash (36) 336 (370) (195)
Cash at beginning of period 109 164 443 695
----------------------------------------------- -------------------
Cash at end of period $ 73 $ 500 $ 73 $ 500
----------------------------------------------- -------------------
See accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. 1) Accounting policies The accounting policies used in the preparation of these interim financial statements conform with those used in TransAlta Power, L.P.'s (TransAlta Power) annual financial statements. These interim financial statements do not include all of the disclosures included in TransAlta Power's annual financial statements. Accordingly, these interim 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 annual financial statements. 2) Seasonality TransAlta Power's earnings result from its 49.99 per cent interest in TransAlta Cogeneration, L.P. (TA Cogen). TA Cogen's operations are seasonal in nature with higher electricity rates and production volumes contracted under power purchase agreements with Ontario Electricity Financial Corporation in the winter months. 3) Partnership Unit Issuance TransAlta Power issued 4.5 million limited partnership units at $8.50 per unit resulting in net proceeds, after deducting issuance fees and expenses, of $36.2 million. The net proceeds were invested on a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. demand basis with TransAlta Corporation to be repaid on October 1, 2001. TransAlta Power used $35.0 million of the net proceeds to subscribe To sign up for a service. Contrast with unsubscribe. See opt-in and syndication format. (messaging) subscribe - To request to receive messages posted to a mailing list or newsgroup. In contrast to the mundane use of the word this is often free of charge. for limited partnership units of TA Cogen. The subscription agreement is effective September 30, 2001 with a closing date of October 1, 2001.
TRANSALTA COGENERATION, L.P.
(in thousands except number of units outstanding)
Balance Sheets
Unaudited Audited
------------ ------------
September 30, December 31,
2001 2000
---------------------------------------------------------------------
ASSETS
Current assets
Cash $ 1,982 $ -
Accounts receivable 22,147 25,559
Due from TransAlta Power Limited Partnership
(Note 4) 35,000 -
Prepaid expenses 763 1,416
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59,892 26,975
Power plants (Note 4) 616,454 564,127
---------------------------------------------------------------------
$676,346 $591,102
---------------------------------------------------------------------
LIABILITIES AND PARTNERS' EQUITY
Current liabilities
Bank overdraft $ - $ 308
Accounts payable and accrued liabilities 16,208 8,199
Distributions payable 4,179 11,812
Due to TransAlta Energy Corporation and
subsidiaries (Note 4) 45,530 13,148
Current portion of long-term debt 3,100 2,935
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69,017 36,402
Long-term debt 62,878 65,224
Partners' equity (Note 4) 544,451 489,476
---------------------------------------------------------------------
$676,346 $591,102
---------------------------------------------------------------------
Statement of Partners' Equity
Number
of Units General Limited
Outstanding Partner Partners Total
---------------------------------------------------------------------
Balance, December 31,
1999 - Audited(2) 55,805,581 $ (4) $512,111 $512,107
Net income 2 19,577 19,579
Distributions declared (4) (42,206) (42,210)
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Balance, December 31,
2000 - Audited* 55,805,581 $ (6) $489,482 $489,476
Subscriptions (Note 4) 8,104,760 - 70,000 70,000
Net income 1 17,998 17,999
Distributions declared (2) (33,022) (33,024)
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Balance, September 30,
2001 - Unaudited 63,910,341 $ (7) $544,458 $544,451
---------------------------------------------------------------------
(2)Derived from the audited financial statements
See accompanying notes
TRANSALTA COGENERATION, L.P.
(in thousands)
Statements of Earnings
Unaudited Unaudited
------------------ -------------------
3 months ended 9 months ended
September 30 September 30
------------------ -------------------
2001 2000 2001 2000
----------------------------------------------- -------------------
Revenues
Power $ 29,786 $ 25,073 $ 96,276 $ 88,475
Thermal and other 793 3,997 5,895 8,790
----------------------------------------------- -------------------
30,579 29,070 102,171 97,265
----------------------------------------------- -------------------
Operating expenses
Cost of gas 16,389 15,431 52,339 49,042
Depreciation 5,880 6,994 18,152 23,594
Operating and maintenance
expenses 3,375 3,772 9,919 9,768
----------------------------------------------- ------------------
25,644 26,197 80,410 82,404
----------------------------------------------- ------------------
Operating income 4,935 2,873 21,761 14,861
Interest expense (1,216) (1,512) (3,762) (4,258)
----------------------------------------------- -------------------
Net income $ 3,719 $ 1,361 $ 17,999 $ 10,603
----------------------------------------------- -------------------
Statements of Distributable Cash
Net income $ 3,719 $ 1,361 $ 17,999 $ 10,603
Add: Depreciation 5,880 6,994 18,152 23,594
Add: Intercompany debt
principal issuance 4,028 - 2,167 -
Deduct: Repayment of long-term
debt principal (740) (688) (2,181) (1,140)
Deduct: Maintenance reserve (1,629) - (3,113) (2,659)
----------------------------------------------- -------------------
Cash available for
distribution $ 11,258 $ 7,667 $ 33,024 $ 30,398
----------------------------------------------- -------------------
Statements of Cash Flows
----------------------------------------------- -------------------
Operating activities
Net income $ 3,719 $ 1,361 $ 17,999 $ 10,603
Depreciation 5,880 6,994 18,152 23,594
----------------------------------------------- -------------------
9,599 8,355 36,151 34,197
Change in non-cash operating
working capital balances 7,438 (2,222) 9,456 8,005
----------------------------------------------- -------------------
17,037 6,133 45,607 42,202
----------------------------------------------- -------------------
Investing activities
Restricted investments - - - 80,300
Additions to power plants (424) (790) (480) (11,372)
Change in non-cash investing
working capital balances 351 - - -
----------------------------------------------- -------------------
(73) (790) (480) 68,928
----------------------------------------------- -------------------
Financing activities
Repayment of promissory note
due to Transalta Energy
Corporation - - - (80,300)
Distributions to
unitholders (15,402) (8,977) (40,656) (36,059)
Repayment of long-term debt
principal (740) (688) (2,181) (1,140)
Restricted deposit - 3,737 - 3,446
----------------------------------------------- -------------------
(16,142) (5,928) (42,837) (114,053)
----------------------------------------------- -------------------
Increase (decrease) in cash 822 (585) 2,290 (2,923)Cash (bank overdraft) at
beginning of period 1,160 1,704 (308) 4,042
----------------------------------------------- -------------------
Cash at end of period $ 1,982 $ 1,119 $ 1,982 $ 1,119
----------------------------------------------- -------------------
Cash interest paid $ 1,219 $ 1,553 $ 3,779 $ 4,430
See accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS (dollar amounts in thousands) 1) Accounting policies The accounting policies used in the preparation of these interim financial statements conform with those used in TransAlta Cogeneration, L.P's ("TA Cogen") annual financial statements except as noted below. These interim financial statements do not include all of the disclosures included in TA Cogen's annual financial statements, accordingly, these interim financial statements should be read in conjunction with the annual financial statements. 2) Change in accounting estimate Effective January 1, 2001, the estimated remaining useful life of the power plants has increased to 27 years from 17 years. The effect of this change on the current period's results is a reduction in depreciation of $7,069. 3) Seasonality TA Cogen's operations are seasonal in nature with higher electricity rates and production volumes contracted under power purchase agreements with Ontario Electricity Financial Corporation in the winter months. 4) Acquisition of Investment Effective September 30, 2001, TA Cogen acquired 3759628 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 Inc.'s 60 per cent interest in the Fort Saskatchewan Cogeneration Project, a 120 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt cogeneration facility. 3759628 Canada Inc. is a
100 per cent owned subsidiary of TransAlta Energy Corporation. As
consideration, 3759628 Canada Inc. received $35,000 of TA Cogen
partnership units and a $35,000 promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. from TA Cogen due
October 1, 2001. TA Cogen issued $35,000 partnership units to TransAlta
Power Limited Partnership with consideration to be received October 1,
2001. The total purchase price of $70,000 has been allocated to capital
assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) .TA Cogen's interest in the Fort Saskatchewan Cogeneration Project is accounted for as a joint venture and accordingly will reflect only TA Cogen's proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. interest in the related assets, liabilities, revenues and expenses. |
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