August 02, 2022

online live casino games reports strong second quarter results, increases its 2022 financial guidance, and announces a 6% common share dividend increase

EDMONTON, Alberta – online live casino games Corporation (TSX: CPX) today released financial results for the quarter ended June 30, 2022.

online live casino games Highlights

  • Generated net cash flows from operating activities of 8 online live casino games and adjusted funds from operations (AFFO) of 0 online live casino games
  • Generated net income of online live casino games and adjusted EBITDA of 9 online live casino games
  • Increased 2022 annual financial guidance for adjusted EBITDA to ,240 online live casino games to ,280 online live casino games (original guidance of ,110 online live casino games to ,160 online live casino games) and AFFO to 0 online live casino games to 0 online live casino games (original guidance of 0 online live casino games to 0 online live casino games)
  •  Increased the annual common online live casino games dividend by 6% to .32 per year representing the ninth consecutive annual increase

Strategic Highlights

“Second quarter online live casino games results continue to exceed management’s expectations,” said Brian Vaasjo, President and CEO of online live casino games. “Higher generation and strong Alberta power prices averaging 6 per megawatt hour along with outstanding performance across the fleet led to exceptional performance in the first half of the year. Based on this performance and the positive outlook for the remainder of the year, we have increased our 2022 financial guidance with revised guidance ranges significantly exceeding the top end of our original targets.”

“We continue to execute on our strategy of acquiring mid-life contracted natural gas assets that are strategically positioned within their online live casino games markets by announcing an agreement to acquire a 50% interest in the Midland Cogen facility with our partner, Manulife Investment Management,” continued Mr. Vaasjo. “The transaction provides immediate AFFO accretion and is supported by highly contracted cash flows to 2030 and 2035. Located in Michigan, it is the largest gas-fired cogeneration facility in North America and combined with its excellent reliability history and operating flexibility, Midland Cogen is a critical asset to support grid reliability during the transition to renewables and is extremely well-positioned for recontracting beyond 2030.”

“I am pleased to announce the Board of Directors has approved a 6% per common online live casino games dividend increase effective for the third quarter 2022 dividend payment. As previously announced, we increased our annual dividend guidance to 2025, from 5% to 6% on the strength of contracted cash flows from the acquisition of the Midland Cogen facility. The growing dividend is forecasted to be below our long-term AFFO payout ratio target of 45% to 55% through 2025,” stated Mr. Vaasjo.

Operational and online live casino games Highlights1

(unaudited, $ millions, except per online live casino games amounts) Three months ended
June 30		 Six months ended
June 30
2022 2021 2022 2021
Electricity generation (Gigawatt hours) 6,638 4,975 13,531 10,605
Generation facility availability 92% 84% 93% 90%
Revenues and other income 713 387 1,214 941
Adjusted EBITDA 2 319 241 667 544
Net income 3 77 17 196 118
Net income attributable to shareholders of online live casino games 80 20 202 123
Basic earnings per online live casino games ($) 0.59 0.05 1.56 0.88
Diluted earnings per online live casino games ($) 0.59 0.05 1.55 0.87
Normalized earnings attributable to common shareholders 2 88 35 196 103
Normalized earnings per online live casino games ($) 2 0.76 0.32 1.69 0.95
Net cash flows online live casino games operating activities 108 129 523 335
Adjusted funds online live casino games operations 2 180 91 380 250
Adjusted funds from operations per online live casino games ($) 2 1.55 0.83 3.27 2.31
Purchase of property, plant and equipment and other assets 147 151 279 248
Dividends per common online live casino games, declared ($) 0.5475 0.5125 1.0950 1.0250

  1. The operational and online live casino games highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis and the unaudited condensed interim online live casino games statements for the six months ended June 30, 2022.
  2. Earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from joint venture interests, gains or losses on disposals and unrealized changes in fair value of commodity derivatives and emissions credits (adjusted EBITDA), normalized earnings attributable to common shareholders and adjusted funds from operations (AFFO) are used as non-GAAP financial measures by the Company. The Company also uses normalized earnings per online live casino games and AFFO per online live casino games which are non-GAAP ratios. These measures and ratios do not have standardized meanings under GAAP and are, therefore, unlikely to be comparable to similar measures used by other enterprises. See Non-GAAP Financial Measures and Ratios.
  3. Includes depreciation and amortization for the three months ended June 30, 2022 and 2021 of 9 online live casino games and 2 online live casino games, respectively, and for the six months ended June 30, 2022 and 2021 of 1 online live casino games and 9 online live casino games, respectively. Forecasted depreciation and amortization for the remainder of 2022 is 5 online live casino games and 7 online live casino games for the third and fourth quarters, respectively.

Significant Events

Advancement of carbon capture project at Genesee

On June 27, 2022, online live casino games New casino games power a sustainable future advancing the commercial application of CCS technology at its Genesee Generating Station in Alberta.

Appointment to the Board of Directors

Effective June 1, 2022, Gary Bosgoed was appointed to the Company’s Board of Directors. With this appointment, online live casino games’s Board of Directors consists of 10 directors, including 40% women and 30% with diversity beyond gender.

Executed 4.5-year contract renewal for Island Generation

On May 16, 2022, online live casino gamesnew online casino no deposit bonus capacity at 27 facilities (EPA) through October 2026 for its Island Generation facility with BC Hydro. The EPA is subject to regulatory approval by the British Columbia Utilities Commission. The terms of the 4.5-year EPA are consistent with the Company’s expectations when it recorded a online live casino games impairment in 2021.

Subsequent Events

Dividend increase

On July 29, 2022, the Company’s Board of Directors approved an increase of 6% in the annual dividend for holders of its common shares, from .19 per common online live casino games to .32 per common online live casino games. This increased common online live casino games dividend will commence with the third quarter 2022 quarterly dividend payment on October 31, 2022 to shareholders of record at the close of business on September 30, 2022.

Acquisition of Midland Cogeneration Venture

On July 12, 2022, free casino games to our clients as part on behalf of the Manulife Infrastructure Fund II and its affiliates to acquire 100% of the interests in MCV Holding Company, which owns Midland Cogen, a 1,633 MW natural gas combined-cycle cogeneration facility. Midland Cogen is being acquired from OMERS Infrastructure Management Inc and its co-investors for a total purchase price of ,163 online live casino games (US4 online live casino games), including the assumption of 8 online live casino games (US1 online live casino games) of project level debt. The transaction is expected to close in the third quarter of 2022, subject to regulatory approvals and other customary closing conditions.

Located in Michigan, Midland Cogen, is the largest gas-fired cogeneration facility in North America, is a critical asset to support grid reliability during the transition to renewables and is well-positioned, given anticipated market conditions, for recontracting beyond 2030. Capital Power and Manulife Investment Management will each own a 50% interest in MCV Holding Company and will each contribute approximately 2 online live casino games (US6 online live casino games) subject to working capital and other closing adjustments. Capital Power will finance its share of the transaction using cash on hand and its existing credit facilities. Capital Power will be responsible for operations and maintenance and asset management for which it will receive an annual management fee.

The acquisition supports online live casino games’s strategy of acquiring mid-life contracted natural gas assets that are strategically positioned within their power markets. Acquisition highlights include:

  • Capital Power’s share of expected average adjusted EBITDA of US online live casino games per year (ranging from US online live casino games in 2023 and declining to US online live casino games in 2027).
  • based on the expected financing, the 5-year average accretion for Capital Power’s AFFO is expected to be US>1037_word_end<.30 per share, reflecting a 7% increase, or an average AFFO of US online live casino games per year during the years 2023-2027.
  • online live casino games purchase agreement with Consumers Energy (rated Baa1/A-/A-) for 1,240 MW of capacity to 2030
  • steam and electricity purchase agreement with Corteva Agriscience (rated NA/A-/A) and Dow Silicones (rated Baa2/BBB/BBB+) to 2035.
  • approximately 15% (243 MW) of uncontracted capacity is available to sell into the MISO Zone 7 market
  • located on 1,200 acres leased online live casino games Consumers Energy. Current layout and additional space allow for additional turbines, battery installation or a hybrid opportunity.

Analyst conference call and webcast

online live casino games will be hosting a conference call and live webcast with analysts on August 2, 2022 at 9:00 am (MT) to discuss the second quarter financial results. The conference call dial-in number is:

(800) 319-4610 (toll-free online live casino games Canada and USA)
Launch Webcast

Interested parties may also access the live webcast on online live casino games’s website at www.capitalpower.com with an archive of the webcast available following the conclusion of the analyst conference call.

Non-GAAP online live casino games Measures and Ratios

The Company uses (i) adjusted EBITDA, (ii) AFFO, and (iii) normalized earnings attributable to common shareholders as online live casino games performance measures.

The Company also uses AFFO per online live casino games and normalized earnings per online live casino games as performance measures. These measures are non-GAAP ratios determined by applying AFFO and normalized earnings attributable to common shareholders, respectively, to the weighted average number of common shares used in the calculation of basic and diluted earnings per online live casino games.

These terms are not defined online live casino games measures according to GAAP and do not have standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of the Company, net cash flows from operating activities or other measures of online live casino games performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of the Company’s results of operations from management’s perspective.

Forward-looking Information

Forward-looking information or statements included in this press release are provided to inform the Company’s shareholders and potential investors about management’s assessment of online live casino games’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 information in this press release includes disclosures regarding (i) status of, and updates to, the Company’s 2022 AFFO and adjusted EBITDA guidance, (ii) expectations pertaining to the financial impacts of the acquisition of Midland Cogen (see Subsequent Events), including the impacts to AFFO, AFFO per online live casino games and adjusted EBITDA, transaction close timing, financing plans, positioning for potential re-contracting following contract expiries in 2030 and 2035, and future site development opportunities, (iii) the timing of the investment decision for the Company’s potential CCS project, and (iv) forecasted depreciation for the remainder of 2022.

These statements are based on certain assumptions and analyses made by the Company considering its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate including its review of purchased businesses and assets. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity, other energy and carbon prices, (ii) performance, (iii) business prospects (including potential re-contracting of facilities) and opportunities including expected growth and online live casino games projects, (iv) status of and impact of policy, legislation and regulations and (v) effective tax rates.

Whether actual results, performance or achievements will conform to the Company’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 the Company’s expectations. Such material risks and uncertainties are: (i) changes in electricity, natural gas and carbon prices in markets in which the Company operates and the use of derivatives, (ii) regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation, (iii) generation facility availability, wind capacity factor and performance including maintenance expenditures, (iv) ability to fund current and future online live casino games and working online live casino games needs, (v) acquisitions and developments including timing and costs of regulatory approvals and construction, (vi) changes in the availability of fuel, (vii) ability to realize the anticipated benefits of acquisitions, (viii) limitations inherent in the Company’s review of acquired assets, (ix) changes in general economic and competitive conditions and (x) changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs. See Risks and Risk Management in both online live casino games’s Management’s Discussion and Analysis for the six months ended June 30, 2022, prepared as of July 29, 2022 and the Company’s 2021 Integrated Annual Report, prepared as of February 23, 2022, for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. online live casino games does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in online live casino games’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

About online live casino games

online live casino games (TSX: CPX) is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own, and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. online live casino games owns approximately 6,600 MW of power generation capacity at 27 facilities across North America. Projects in advanced development include approximately 385 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.

Supporting Document

Full 2022 Q2 Report