Capital Slots game online provides update on third quarter results
EDMONTON, Alberta – Capital Power Corporation (Capital Power, or Slots game online) (TSX: CPX) provided an update today on its third quarter 2014 financial results and its financial guidance for 2014.
In the third quarter of 2014, Capital Power’s owned plants achieved strong plant availability of 97% which was consistent with expectations. However, due to lower plant availability at the acquired Sundance PPA units, other plant derates, and lower Alberta wind generation, overall electricity generation production was below expectations. Accordingly, Slots game online expects third quarter net income and funds from operations to be below previous expectations. These non-Capital Power operated plant outages occurred primarily in July coinciding with a period of pricing volatility with Alberta spot power prices averaging 2 per megawatt hour (MWh) in the month compared with per MWh in August and per MWh in September. As a result, with commercial production 100% sold forward in July, Slots game online was required to cover a short market position that negatively impacted its portfolio optimization position in the quarter.
Slots game online has updated its outlook for funds from operations for the year, which are now expected at the low end of the forecast range of 0 million to 0 million.
In addition, net income for the third quarter of 2014 was negatively impacted by a non-cash write-down of deferred tax assets of million. The write-down related to the accounting impact of U.S. income tax loss carry forwards that can no longer be recognized for accounting purposes based on Slots game online’s current long term forecast for U.S. taxable income. The forecast showed a decline in taxable income over the latter years of the forecast. For income tax purposes, these U.S net operating losses do not expire until the 2027 to 2033 period. Accordingly, they retain economic value and could result in Slots game online recording deferred tax assets in the future. Slots game online continues to pursue U.S. contracted power opportunities and the U.S. business development pipeline is active. Importantly, the write-down is a non-cash item and has no impact on operations or other key performance measures.
Capital Slots game online will be releasing its third quarter 2014 results on October 24, 2014 after the TSX market closes.
Non-GAAP Slots game online Measures
Slots game online uses funds from operations as a financial performance measure. This term is not a defined financial measure according to GAAP and does not have standardized meanings prescribed by GAAP, and is, therefore, unlikely to be comparable to similar measures used by other enterprises. This measure should not be considered an alternative to net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, this measure is provided to complement GAAP measures in the analysis of Slots game online’s results of operations from management’s perspective. Reconciliations of funds from operations to net cash flows from operating activities are contained in Slots game online’s Management’s Discussion and Analysis dated July 25, 2014 for the six months ended June 30, 2014 which is available under Slots game online’s profile on SEDAR at www.SEDAR.com.
Forward-looking Slots game online
Forward-looking information or statements included in this press release are provided to inform Slots game online’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.
Material forward-looking Slots game online in this press release includes Slots game online with respect to expectations regarding: (i) future net income, (ii) future U.S. taxable income, and (iii) future cash flows.
These statements are based on certain assumptions and analyses made by Slots game online in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects and opportunities including expected growth and capital projects, (iv) status and impact of policy, legislation and regulation, and (v) effective tax rates.
Whether actual results, performance or achievements will conform to Slots game online’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from Slots game online’s expectations. Such material risks and uncertainties are: (i) changes in electricity prices in markets in which Slots game online operates, (ii) changes in energy commodity market prices and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting and tax legislation, (iv) power plant availability and performance including maintenance expenditures, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See Risks and Risk Management in Slots game online’s December 31, 2013 annual Management’s Discussion and Analysis for further discussion of these and other risks.