OAKVILLE, Ontario, March 07, 2025--(BUSINESS WIRE)--Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) ("AQN", "Algonquin" or the "Company") announced today financial results for the fourth quarter and full year ended December 31, 2024. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted.
"The Company continued to make strides in its transition to a pure-play utility. Over the last 90 days, we successfully completed our Renewables and Atlantica sales, and we enter 2025 with a recapitalized balance sheet and significant opportunity for improvement," said Chris Huskilson, Chief Executive Officer of AQN. "It has been a privilege to lead Algonquin during this momentous period of transformation, and I look forward to seeing positive developments at the Company under Rod West's direction as he looks to accelerate our progress in 2025."
Fourth Quarter and Full Year Financial Results for Continuing Operations1
All amounts in U.S. $ millions except per share information |
Three months ended December 31 |
Twelve months ended December 31 |
|||||||||||||
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||
Revenue3 |
$ |
584.8 |
$ |
588.2 |
(1 |
)% |
$ |
2,319.5 |
$ |
2,403.9 |
(4 |
)% |
|||
Regulated Services Group Revenue |
576.2 |
576.4 |
— |
2,282.0 |
2,366.9 |
(4 |
)% |
||||||||
Hydro Group Revenue |
8.1 |
8.9 |
(9 |
)% |
36.1 |
35.6 |
1 |
% |
|||||||
Corporate Group Revenue |
0.4 |
0.5 |
(20 |
)% |
1.4 |
1.4 |
— |
% |
|||||||
Net earnings (loss) attributable to shareholders from continuing operations |
(107.5 |
) |
169.8 |
(163 |
)% |
65.3 |
(14.4 |
) |
553 |
% |
|||||
Per common share from continuing operations |
(0.14 |
) |
0.24 |
(160 |
)% |
0.07 |
(0.03 |
) |
333 |
% |
|||||
Net earnings (loss) attributable to shareholders including discontinued operations |
(189.1 |
) |
184.2 |
(203 |
)% |
(1,391.0 |
) |
20.3 |
N/A |
||||||
Per common share including discontinued operations |
(0.24 |
) |
0.26 |
(192 |
)% |
(1.90 |
) |
0.03 |
N/A |
||||||
Cash provided by operating activities |
48.1 |
200.7 |
(76 |
)% |
481.7 |
628.0 |
(23 |
)% |
|||||||
Adjusted Net Earnings2 |
45.2 |
81.3 |
(44 |
)% |
232.1 |
279.4 |
(17 |
)% |
|||||||
Per common share |
0.06 |
0.12 |
(50 |
)% |
0.30 |
0.39 |
(23 |
)% |
|||||||
Adjusted EBITDA2 |
248.6 |
262.1 |
(5 |
)% |
1,039.3 |
1,013.2 |
3 |
% |
|||||||
Adjusted EBITDA2 for Regulated Services Group |
234.4 |
229.0 |
2 |
% |
940.2 |
902.7 |
4 |
% |
|||||||
Adjusted EBITDA2 for Hydro Group |
6.1 |
7.0 |
(13 |
)% |
27.1 |
26.5 |
2 |
% |
|||||||
Adjusted EBITDA2 for Corporate Group |
8.1 |
26.1 |
(69 |
)% |
72.0 |
84.0 |
(14 |
)% |
|||||||
Adjusted Funds from Operations2 |
81.7 |
151.6 |
(46 |
)% |
515.7 |
586.2 |
(12 |
)% |
|||||||
Dividends per common share |
0.0650 |
0.1085 |
(40 |
)% |
0.3470 |
0.4340 |
(20 |
)% |
|||||||
Long-term Debt, continuing operations |
6,698.8 |
7,500.2 |
(11 |
)% |
6,698.8 |
7,500.2 |
(11 |
)% |
1 |
AQN's operations are organized across two business units consisting of: 1) the Regulated Services Group, which primarily owns and operates a portfolio of regulated electric, water distribution and wastewater systems, and natural gas utility systems and transmission operations in the United States, Canada, Bermuda and Chile; and 2) the Hydro Group, which consists of hydroelectric generation facilities located in Canada that were not sold as part of the sale of the Company’s renewable energy business. Additionally, the Company has a corporate function, the Corporate Group, consisting of corporate and shared services that primarily support the Regulated Services Group and the Hydro Group, in addition to holding certain ancillary investments. |
2 |
Please refer to "Non-GAAP Measures" below for further details. |
3 | Discontinued Operations Revenue for the three months and twelve months ended December 31, 2024 totaled $99.2 million and $339.7 million, respectively, versus $81.1 million and $294.1 million for the three months and twelve months ended December 31, 2023. |
Fourth Quarter and Full Year 2024 Operational Results and Corporate Actions
Subsequent Events
AQN will file its annual consolidated financial statements, annual management discussion & analysis (the "Annual MD&A"), and annual information form, each for the year ended December 31, 2024, with the applicable Canadian securities regulatory authorities. Copies of these documents and other supplemental information on AQN is made available on its website at www.AlgonquinPower.com and in its corporate filings on SEDAR+ at www.sedarplus.com (for Canadian filings) and EDGAR at www.sec.gov/edgar (for U.S. filings). A hard copy of AQN’s annual consolidated financial statements for the year ended December 31, 2024 can be obtained free of charge upon request to InvestorRelations@APUCorp.com. AQN will also file its Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission.
Earnings Conference Call
AQN will hold an earnings conference call at 8:30 a.m. eastern time on Friday, March 7, 2025, hosted by Chief Executive Officer, Chris Huskilson, incoming Chief Executive Officer, Rod West, and Chief Financial Officer, Darren Myers.
Date: |
Friday, March 7, 2025 |
|
Time: |
8:30 a.m. ET |
|
Conference Call: |
Toll Free Dial-In Number |
1 (800) 715-9871 |
Toll Dial-In Number |
1 (647) 932-3411 |
|
Conference ID |
4528692 |
|
Webcast: |
https://edge.media-server.com/mmc/p/b2sqen57 |
|
Presentation also available at: www.algonquinpower.com |
About Algonquin Power & Utilities Corp. and Liberty
Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility. AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common shares and Series 2019-A subordinated notes are listed on the New York Stock Exchange under the symbols AQN and AQNB, respectively.
Visit AQN at www.algonquinpower.com and follow us on X.com @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). The words "will", "intends", "expects", "looks", and "seeks" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements in this news release include, but are not limited to, statements regarding: expectations regarding rate cases, including the expected outcomes thereof; and expectations regarding the proceeds from the sale of the Company’s renewable energy business and the expected use thereof. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Forward-looking statements contained herein are provided for the purposes of assisting in understanding the Company and its business, operations, risks, financial performance, financial position and cash flows as at and for the periods indicated and to present information about management’s current expectations and plans relating to the future and such information may not be appropriate for other purposes. Material risk factors and assumptions include those set out in AQN's Annual Information Form and Annual MD&A for the year ended December 31, 2024, each of which is or will be available on SEDAR+ and EDGAR. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, AQN undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
Non-GAAP Measures
AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), while other measures do not have a standardized meaning under U.S. GAAP. These non-GAAP measures include non-GAAP financial measures and non-GAAP ratios, each as defined in Canadian National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure. AQN’s method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies.
The terms "Adjusted Net Earnings", "Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization" (or "Adjusted EBITDA"), "Adjusted Funds from Operations", and "Net Utility Sales", which are used in this news release, are non-GAAP financial measures. An explanation of each of these non-GAAP financial measures can be found in the section titled "Caution Concerning Non-GAAP Measures" in the Annual MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable U.S. GAAP measure, in each case, can be found below. In addition, "Adjusted Net Earnings" is presented in this news release on a per common share basis. Adjusted Net Earnings per common share is a non-GAAP ratio and is calculated by dividing Adjusted Net Earnings by the weighted average number of common shares outstanding during the applicable period.
Reconciliation of AQN Adjusted EBITDA to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to AQN Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings.
Three months ended |
Twelve months ended |
||||||||||||||
December 31 |
December 31 |
||||||||||||||
(all dollar amounts in $ millions) |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Net earnings (loss) attributable to shareholders |
$ |
(186.4 |
) |
$ |
186.3 |
$ |
(1,380.5 |
) |
$ |
28.7 |
|||||
Add (deduct): |
|||||||||||||||
Net earnings attributable to the non-controlling interest, exclusive of HLBV |
1.5 |
8.6 |
5.7 |
34.7 |
|||||||||||
Loss from discontinued operations, net of tax |
78.9 |
(16.5 |
) |
1,445.9 |
(43.1 |
) |
|||||||||
Income tax expense (recovery) |
153.5 |
13.0 |
186.8 |
(37.1 |
) |
||||||||||
Interest expense |
89.4 |
75.8 |
363.6 |
308.4 |
|||||||||||
Other net losses1 |
7.1 |
10.3 |
27.0 |
121.7 |
|||||||||||
Asset impairment charge |
— |
1.5 |
— |
1.5 |
|||||||||||
Pension and post-employment non-service costs |
3.7 |
4.7 |
14.1 |
19.9 |
|||||||||||
Change in value of investments carried at fair value2 |
2.0 |
(117.5 |
) |
(21.7 |
) |
215.3 |
|||||||||
Gain on derivative financial instruments |
(0.4 |
) |
(0.6 |
) |
(0.8 |
) |
(4.6 |
) |
|||||||
Loss on foreign exchange |
(0.3 |
) |
5.4 |
3.5 |
13.7 |
||||||||||
Depreciation and amortization |
99.6 |
91.1 |
395.7 |
354.1 |
|||||||||||
Adjusted EBITDA |
$ |
248.6 |
$ |
262.1 |
$ |
1,039.3 |
$ |
1,013.2 |
1 |
See Note 18 in the audited consolidated financial statements. |
2 |
See Note 8 in the audited consolidated financial statements. |
Reconciliation of Adjusted Net Earnings to Net Earnings
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net Earnings and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to consolidated net earnings in accordance with U.S. GAAP.
The following table shows the reconciliation of net earnings to Adjusted Net Earnings exclusive of these items:
Three months ended |
Twelve months ended |
||||||||||||||
December 31 |
December 31 |
||||||||||||||
(all dollar amounts in $ millions except per share information) |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Net earnings (loss) attributable to shareholders |
$ |
(186.4 |
) |
$ |
186.3 |
$ |
(1,380.5 |
) |
$ |
28.7 |
|||||
Add (deduct): |
|||||||||||||||
Loss (Earnings) from discontinued operations |
78.9 |
(16.5 |
) |
1,445.9 |
(43.1 |
) |
|||||||||
Gain on derivative financial instruments |
(0.4 |
) |
(0.6 |
) |
(0.8 |
) |
(4.6 |
) |
|||||||
Other net losses1 |
7.1 |
10.3 |
27.0 |
121.7 |
|||||||||||
Asset impairment charge |
— |
1.5 |
— |
1.5 |
|||||||||||
Loss on foreign exchange |
(0.3 |
) |
5.4 |
3.5 |
13.7 |
||||||||||
Change in value of investments carried at fair value2 |
2.0 |
(117.5 |
) |
(21.7 |
) |
215.3 |
|||||||||
Adjustment for taxes related to above |
144.3 |
12.4 |
158.7 |
(53.8 |
) |
||||||||||
Adjusted Net Earnings |
$ |
45.2 |
$ |
81.3 |
$ |
232.1 |
$ |
279.4 |
|||||||
Adjusted Net Earnings per common share |
$ |
0.06 |
$ |
0.12 |
$ |
0.30 |
$ |
0.39 |
1 |
See Note 18 in the audited consolidated financial statements. |
2 |
See Note 8 in the audited consolidated financial statements. |
Reconciliation of Adjusted Funds from Operations to Cash Provided by Operating Activities
The following table is derived from and should be read in conjunction with the consolidated statement of operations and consolidated statement of cash flows. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Funds from Operations and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to cash provided by operating activities in accordance with U.S GAAP.
The following table shows the reconciliation of cash provided by operating activities to Adjusted Funds from Operations exclusive of these items:
Three months ended |
Twelve months ended |
||||||||||||||
December 31 |
December 31 |
||||||||||||||
(all dollar amounts in $ millions) |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Cash provided by operating activities |
$ |
48.1 |
$ |
200.7 |
$ |
481.7 |
$ |
628.0 |
|||||||
Add (deduct): |
|||||||||||||||
Cash provided by operating activities of discontinued operations |
(41.8 |
) |
(49.8 |
) |
(121.3 |
) |
(128.5 |
) |
|||||||
Changes in non-cash operating items for continuing operations |
84.9 |
(1.8 |
) |
139.4 |
86.3 |
||||||||||
Changes in non-cash operating items from discontinued operations |
(9.5 |
) |
2.5 |
13.9 |
(0.8 |
) |
|||||||||
Production based cash contribution from non-controlling interest for continuing operations |
— |
— |
2.0 |
— |
|||||||||||
Costs related to tax equity financing |
— |
— |
— |
1.2 |
|||||||||||
Adjusted Funds from Operations |
$ |
81.7 |
$ |
151.6 |
$ |
515.7 |
$ |
586.2 |
Reconciliation of Regulated Services Group Adjusted EBITDA to Revenue
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Regulated Services Group Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings.
Three months ended |
Twelve months ended |
||||||||||||||
December 31 |
December 31 |
||||||||||||||
(all dollar amounts in $ millions) |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Revenue |
|||||||||||||||
Regulated electricity distribution |
$ |
304.6 |
$ |
297.0 |
$ |
1,276.1 |
$ |
1,295.5 |
|||||||
Less: Regulated electricity purchased |
(85.1 |
) |
(95.7 |
) |
(365.7 |
) |
(429.8 |
) |
|||||||
Net Utility Sales – electricity1 |
219.5 |
201.3 |
910.4 |
865.7 |
|||||||||||
Regulated gas distribution |
152.5 |
167.4 |
546.4 |
621.3 |
|||||||||||
Less: Regulated gas purchased |
(51.1 |
) |
(71.6 |
) |
(183.2 |
) |
(267.1 |
) |
|||||||
Net Utility Sales – natural gas1 |
101.4 |
95.8 |
363.2 |
354.2 |
|||||||||||
Regulated water reclamation and distribution |
104.0 |
100.5 |
406.1 |
399.1 |
|||||||||||
Less: Regulated water purchased |
(6.5 |
) |
(5.9 |
) |
(21.5 |
) |
(19.6 |
) |
|||||||
Net Utility Sales – water reclamation and distribution1 |
97.5 |
94.6 |
384.6 |
379.5 |
|||||||||||
Other revenue2 |
15.2 |
11.5 |
53.4 |
51.1 |
|||||||||||
Less: Other Cost of Sales |
(7.6 |
) |
(7.9 |
) |
(23.7 |
) |
(26.5 |
) |
|||||||
Net Utility Sales1,3 |
426.0 |
395.3 |
1,687.9 |
1,624.0 |
|||||||||||
Operating expenses |
(223.2 |
) |
(194.7 |
) |
(861.8 |
) |
(811.6 |
) |
|||||||
Income from long-term investments |
10.4 |
11.6 |
33.5 |
45.0 |
|||||||||||
HLBV4 |
21.2 |
16.8 |
80.6 |
45.3 |
|||||||||||
Adjusted EBITDA 1,5 |
$ |
234.4 |
$ |
229.0 |
$ |
940.2 |
$ |
902.7 |
1 |
See Caution Concerning Non-GAAP Measures. |
2 |
See Note 20 in the audited consolidated financial statements. |
3 |
This table contains a reconciliation of Net Utility Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the consolidated statement of operations and Note 20 in the audited consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Net Utility Sales and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Net Utility Sales should not be construed as an alternative to revenue. |
4 |
HLBV income represents the value of net tax attributes monetized by the Regulated Services Group in the period at the Luning and Turquoise Solar Facilities and the Neosho Ridge, Kings Point and North Fork Ridge Wind Facilities. |
5 |
This table contains a reconciliation of Adjusted EBITDA to revenue for the Regulated Services Group. The relevant sections of the table are derived from and should be read in conjunction with the audited consolidated statement of operations and Note 20 in the audited consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to revenue. |
Reconciliation of Hydro Group Adjusted EBITDA to Revenue
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Hydro Group Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings.
Three months ended |
Twelve months ended |
||||||||||
December 31 |
December 31 |
||||||||||
(all dollar amounts in $ millions) |
2024 |
2023 |
2024 |
2023 |
|||||||
Revenue |
$ |
8.1 |
$ |
8.6 |
$ |
35.3 |
$ |
34.3 |
|||
Less: Cost of Sales - Hydro |
— |
0.1 |
0.2 |
0.5 |
|||||||
Add: Other income |
— |
0.3 |
0.8 |
1.3 |
|||||||
Less: Operating expenses |
2.0 |
1.8 |
8.8 |
8.6 |
|||||||
Hydro Group Adjusted EBITDA1,2 |
$ |
6.1 |
$ |
7.0 |
$ |
27.1 |
$ |
26.5 |
1 |
See Caution Concerning Non-GAAP Measures. |
2 |
This table contains a reconciliation of Adjusted EBITDA to revenue for the Hydro Group. The relevant sections of the table are derived from and should be read in conjunction with the consolidated statement of operations and Note 20 in the audited consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA and provides additional information related to the operating performance of the Hydro Group. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to revenue. |
Reconciliation of Corporate Group Adjusted EBITDA to Revenue
The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Corporate Group Adjusted EBITDA and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings.
Three months ended |
Twelve months ended |
||||||
December 31 |
December 31 |
||||||
(all dollar amounts in $ millions) |
2024 |
2023 |
2024 |
2023 |
|||
Revenue |
0.4 |
0.5 |
1.4 |
1.4 |
|||
Add: Interest, dividend, equity, and other income |
11.7 |
29.3 |
80.0 |
86.6 |
|||
Less: Operating expenses |
4.0 |
3.7 |
9.4 |
4.0 |
|||
Corporate Group Adjusted EBITDA1,2 |
8.1 |
26.1 |
72.0 |
84.0 |
1 |
See Caution Concerning Non-GAAP Measures. |
2 |
This table contains a reconciliation of Adjusted EBITDA to revenue for the Corporate Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 20 in the audited consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA and provides additional information related to the operating performance of the Corporate Group. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to revenue. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250307640546/en/
Contacts
Investor Inquiries:
Brian Chin
Vice President, Investor Relations
Algonquin Power & Utilities Corp.
E-mail: InvestorRelations@APUCorp.com
Telephone: (905) 465-4500
Media Inquiries:
Stephanie Bose
Senior Director, Corporate Communications
Liberty
E-mail: Corporate.Communications@libertyutilities.com
Telephone: (905) 465-4500
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