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Atlantic Power Corporation

Company Summary

Financial Data:

NYSE:AT from Google Finance

Tickers:

AT - New York Stock Exchange

ATP - Toronto Stock Exchange

Related Entities

Company Transactions

Date: 6/30/2021
Type: Acquisition

BUYERS:

I Squared Capital

SELLERS:

Atlantic Power Corporation

DETAILS:

COST: 961 $MM

NOTES:
I Squared Capital has reached a deal to acquire Atlantic Power Corporation for an enterprise value of $961 million. Common shareholders will receive $3.03/share in cash (48% premium) and all convertible debentures will be converted into common shares with a make-whole premium. If approved, closing is planned for the second quarter of 2021.

REGIONS:

United States

Date: 9/30/2019
Type: Acquisition

BUYERS:

Atlantic Power Corporation

SELLERS:

EDF Renewable Energy

ASSETS:

Allendale Biomass

Dorchester Biomass

DETAILS:

COST: 13 $MM

VOLUMES: 40 MW

NOTES:
Atlantic Power has entered into a deal to acquire two biomass generating plants in South Carolina from EDF Renewables for $ 13 million.

REGIONS:

Southeast

Date: 8/1/2018
Type: Acquisition

BUYERS:

Atlantic Power Corporation

SELLERS:

Covanta Hydro Ops West Inc

Covanta Energy Co

ASSETS:

Koma Kulshan Hydro Plant

DETAILS:

COST: 13.2 $MM

VOLUMES: 7.5

NOTES:
Atlantic Power announced that on June 29, 2018, they entered into a deal with Covanta to acquire a 50% stake in the Koma Kulshan 13-MW Hydro Project

	Limit on Purchases (Principal Amount)
	Total Limit ⁽¹⁾	Daily Limit ⁽²⁾
a) 6.0% Cdn$115.0 Million Debentures	Cdn$5,750,000	Cdn$7,706

	Limit on Purchases (Number of Shares)
	Total Limit ⁽³⁾	Daily Limit ⁽⁴⁾
b) Common Shares	8,554,391	10,420
c) Series 1 Preferred Shares	346,570	1,000
d) Series 2 Preferred Shares	243,976	1,000
e) Series 3 Preferred Shares	93,889	1,000

Notes
	1	Represents 5% of the public float. As of December 17, 2020, the public float of the 6.0% Cdn$115.0 Million Debentures was $115,000,000.
	2	Represents 25% of the 6-month Average Daily Trading Value ("ADTVA") on the TSX. The ADTVA for the 6.0% Cdn$115.0 Million Debentures is Cdn$30,826.
	3	For the Common Shares, represents 10% of the public float. For the Series 1 Preferred Shares, Series 2 Preferred Shares and Series 3 Preferred Shares, represents 10% of the public float. As of December 17, 2020, the public float of the Common Shares was 85,543,916; the public float of the Series 1 Preferred Shares was 3,465,706; the public float of the Series 2 Preferred Shares was 2,439,766; and the public float of the Series 3 Preferred Shares was 938,891.
	4	Represents the greater of 25% of the 6-month Average Daily Trading Volume ("ADTVO") on the TSX or 1,000 shares. The ADTVO for the Common Shares is 41,683; the ADTVO for the Series 1 Preferred Shares is 1,221; the ADTVO for the Series 2 Preferred Shares is 993; and the ADTVO for the Series 3 Preferred Shares is 836.

Atlantic Power Corporation
Table 1 - Financial Results
(in millions of U.S. dollars)
Unaudited	Three months ended			Nine months ended
	September 30,			September 30,
	2020	2019	Variance	2020	2019	Variance
Project revenue	$65.2	$71.1	($5.9)	$200.3	$215.4	($15.1)
Project income	38.0	27.9	10.1	82.3	80.1	2.2
Net income attributable to Atlantic Power Corp.	16.2	12.6	3.6	40.0	22.7	17.3
Earnings per share attributable to Atlantic Power Corp. - basic	0.18	0.12	0.06	0.41	0.21	0.20
Earnings per share attributable to Atlantic Power Corp. - diluted	0.15	0.10	0.05	0.34	0.19	0.15
Project Adjusted EBITDA	49.5	48.9	0.6	137.1	153.2	(16.1)
All amounts are in U.S. dollars and are approximate unless otherwise indicated. Project Adjusted EBITDA is not a recognized measure under generally accepted accounting principles in the United States ("GAAP") and does not have a standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to similar measures presented by other companies. Please refer to "Non-GAAP Disclosures" on page 14 of this news release for an explanation and a reconciliation of "Project Adjusted EBITDA" as used in this news release to Project income (loss).

Atlantic Power Corporation
Table 2 - Project Income (Loss) and Project Adjusted EBITDA by Segment
(in millions of U.S. dollars)
Unaudited
	Three months ended			Nine months ended
	September 30,			September 30,
	2020	2019	Variance	2020	2019	Variance
Project income (loss)
Solid Fuel	$10.8	$5.4	$5.4	$4.5	$10.3	($5.8)
Natural Gas	25.2	23.0	2.2	61.8	51.6	10.2
Hydroelectric	0.7	1.4	(0.7)	21.0	26.6	(5.6)
Corporate	1.3	(1.9)	3.2	(5.0)	(8.4)	3.4
Total	$38.0	$27.9	$10.1	$82.3	$80.1	$2.2
Project Adjusted EBITDA
Solid Fuel	$17.1	$13.2	$3.9	$23.3	$31.5	($8.2)
Natural Gas	27.1	29.6	(2.5)	79.1	80.6	(1.5)
Hydroelectric	5.6	6.3	(0.7)	35.7	41.2	(5.5)
Corporate	(0.3)	(0.2)	(0.1)	(1.0)	(0.1)	(0.9)
Total	$49.5	$48.9	$0.6	$137.1	$153.2	($16.1)

Atlantic Power Corporation
Table 3 - Cash Flow Results
(in millions of U.S. dollars)
Unaudited	Three months ended			Nine months ended
	September 30,			September 30,
	2020	2019	Variance	2020	2019	Variance
Net cash provided by operating activities	$27.8	$36.4	($8.6)	$72.1	$104.5	($32.4)
Net cash used in investing activities	(6.5)	(29.1)	22.6	(9.4)	(28.0)	18.6
Net cash used in financing activities	(26.9)	(20.3)	(6.6)	(112.4)	(87.1)	(25.3)

Atlantic Power Corporation
Table 4 - Liquidity
(in millions of U.S. dollars)
Unaudited
	September 30, 2020	June 30, 2020
Cash and cash equivalents, parent	$15.9	$16.1
Cash and cash equivalents, projects	14.4	21.9
Total cash and cash equivalents	30.3	38.0
Revolving credit facility	180.0	180.0
Letters of credit outstanding	(78.0)	(77.9)
Availability under revolving credit facility	102.0	102.1
Total liquidity	$132.3	$140.1
Excludes restricted cash of⁽¹⁾:	$2.6	$0.5
⁽¹⁾ Includes $1.2 million and $0.2 million at September 30, 2020 and June 30, 2020, respectively, from Cadillac insurance proceeds for use in reconstruction of the plant.

Atlantic Power Corporation
Table 5 - Bridge of 2020 Project Adjusted EBITDA Guidance to Cash Provided by Operating Activities
(in millions of U.S. dollars)
Unaudited
	2020 Guidance
	(Initiated 2/27/20)	2019 Actual
Project Adjusted EBITDA	$175 - $190	$196.1
Adjustment for equity method projects⁽¹⁾	(8.0)	(3.5)
Corporate G&A (cash)	(23.0)	(22.4)
Cash interest payments	(36.0)	(37.6)
Cash taxes	(4.0)	(2.3)
Decommissioning (San Diego projects)	(4.0)	(1.0)
Other (including changes in working capital)	-	15.4
Cash provided by operating activities	$100 - $115	$144.7
Note: For the purpose of providing bridge of Project Adjusted EBITDA guidance to a cash flow measure, the impact of changes in working capital on Cash provided by operating activities is assumed to be nil in 2020 estimate.
⁽¹⁾ For equity method projects, represents difference between Project Adjusted EBITDA and cash distribution.

Atlantic Power Corporation
Table 6 – Consolidated Balance Sheet
(in millions of U.S. dollars)
Unaudited
	September 30,	December 31,
	2020	2019
Assets
Current assets:
Cash and cash equivalents	$30.3	$74.9
Restricted cash	2.6	7.7
Accounts receivable	29.4	30.4
Insurance recovery receivable	-	13.5
Current portion of derivative instruments asset	-	0.7
Inventory	19.5	18.6
Prepayments	5.5	3.8
Income taxes receivable	2.4	1.8
Lease receivable	-	0.9
Other current assets	0.2	0.4
Total current assets	89.9	152.7
Property, plant, and equipment, net	494.8	502.1
Equity method investments in unconsolidated affiliates	91.4	96.6
Power purchase agreements and intangible assets, net	125.8	144.3
Goodwill	21.3	21.3
Operating lease right-of-use assets	4.9	6.3
Deferred income taxes	11.7	10.4
Other assets	0.6	1.9
Total assets	$840.4	$935.6
Liabilities
Current liabilities:
Accounts payable	$4.0	$8.9
Accrued interest	3.4	2.6
Other accrued liabilities	19.3	20.8
Current portion of long-term debt	91.0	76.4
Current portion of derivative instruments liability	10.6	12.0
Operating lease liabilities	2.0	2.0
Other current liabilities	0.6	0.2
Total current liabilities	130.9	122.9
Long-term debt, net of unamortized discount and deferred financing costs	399.7	473.5
Convertible debentures, net of discount and unamortized deferred financing costs	79.8	81.1
Derivative instruments liability	9.1	15.9
Deferred income taxes	25.8	23.7
Power purchase agreements and intangible liabilities, net	18.1	19.8
Asset retirement obligations, net	50.2	51.5
Operating lease liabilities	3.4	4.8
Other long-term liabilities	4.1	4.7
Total liabilities	$721.1	$797.9
Equity
Common shares, no par value, unlimited authorized shares; 89,222,568 and 108,675,294 issued and outstanding at September 30, 2020 and December 31, 2019	1,219.4	1,259.9
Accumulated other comprehensive loss	(144.7)	(140.7)
Retained deficit	(1,124.2)	(1,164.2)
Total Atlantic Power Corporation shareholders' deficit	(49.5)	(45.0)
Preferred shares issued by a subsidiary company	168.8	182.7
Total equity	119.3	137.7
Total liabilities and equity	$840.4	$935.6

Atlantic Power Corporation
Table 7 - Consolidated Statements of Operations
(in millions of U.S. dollars, except per share amounts)
Unaudited
	Three months ended		Nine months ended
	September 30,		September 30,
	2020	2019	2020	2019
Project revenue:
Energy sales	$30.3	$29.2	$102.1	$102.7
Energy capacity revenue	29.7	38.0	84.8	99.8
Other	5.2	3.9	13.4	12.9
	65.2	71.1	200.3	215.4
Project expenses:
Fuel	17.5	19.4	51.3	55.2
Operations and maintenance	21.2	19.5	64.0	54.6
Depreciation and amortization	14.5	16.2	45.3	48.5
	53.2	55.1	160.6	158.3
Project other income (loss):
Change in fair value of derivative instruments	8.1	1.1	5.6	(8.3)
Equity in earnings of unconsolidated affiliates	12.1	12.1	31.8	34.4
Interest, net	(0.4)	(0.3)	(1.0)	(0.9)
Insurance gain (loss)	6.2	(1.0)	6.2	(1.0)
Other expense, net	-	-	-	(1.2)
	26.0	11.9	42.6	23.0
Project income	38.0	27.9	82.3	80.1

Administrative and other expenses:
Administration	5.6	5.5	16.8	17.3
Interest expense, net	10.8	10.9	31.7	33.0
Foreign exchange loss (gain)	5.1	(2.8)	(6.2)	7.1
Other (income) expense, net	(3.8)	(0.2)	(2.7)	0.7
	17.7	13.4	39.6	58.1
Income from operations before income taxes	20.3	14.5	42.7	22.0
Income tax expense	2.5	0.2	5.2	2.4
Net income	17.8	14.3	37.5	19.6
Net income (loss) attributable to preferred shares of a subsidiary company	1.6	1.7	(2.5)	(3.1)
Net income attributable to Atlantic Power Corporation	$16.2	$12.6	$40.0	$22.7
Net earnings per share attributable to Atlantic Power Corporation shareholders:
Basic	$0.18	$0.12	$0.41	$0.21
Diluted	$0.15	$0.10	$0.34	$0.19
Weighted average number of common shares outstanding:
Basic	89.5	109.4	98.1	109.4
Diluted	117.8	137.8	126.4	138.3

Atlantic Power Corporation
Table 8 - Consolidated Statements of Cash Flows
(in millions of U.S. dollars)	Nine months ended
Unaudited	September 30,
	2020	2019
Cash provided by operating activities:
Net income	$37.5	$19.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	45.3	48.5
Share-based compensation	1.1	1.2
Other gain	-	(0.8)
Asset retirement obligations	-	1.4
Gain on disposal of fixed assets and inventory	(0.8)	(0.1)
Insurance loss	-	1.0
Equity in earnings from unconsolidated affiliates	(31.8)	(34.4)
Distributions from unconsolidated affiliates	37.3	41.4
Unrealized foreign exchange (gain) loss	(6.6)	7.3
Change in fair value of derivative instruments	(7.3)	9.8
Amortization of debt discount and deferred financing costs	4.7	5.3
Non-cash operating lease expense	1.4	1.1
Deferred income taxes	0.6	(1.8)
Change in other operating balances
Accounts receivable	1.2	4.7
Inventory	(1.0)	0.3
Prepayments and other assets	(0.4)	(0.2)
Accounts payable	(6.1)	(1.3)
Accruals and other liabilities	(3.0)	1.5
Cash provided by operating activities	72.1	104.5

Cash used in investing activities:
Investment in unconsolidated affiliate	-	(18.7)
Insurance proceeds	12.7	-
Cash paid for acquisition, net of cash received	-	(10.0)
Proceeds from sales of assets	0.9	1.6
Purchase of property, plant and equipment	(23.0)	(0.9)
Cash used in investing activities	(9.4)	(28.0)

Cash used in financing activities:
Common share repurchases	(41.6)	(0.8)
Preferred share repurchases	(6.4)	(8.0)
Repayment of corporate and project-level debt	(57.1)	(52.3)
Repayment of convertible debentures	-	(18.5)
Cash payments for vested LTIP withheld for taxes	(0.7)	(2.0)
Deferred financing costs	(1.6)	-
Dividends paid to preferred shareholders	(5.0)	(5.5)
Cash used in financing activities	(112.4)	(87.1)

Net decrease in cash, restricted cash and cash equivalents	(49.7)	(10.6)
Cash, restricted cash and cash equivalents at beginning of period	82.6	70.4
Cash, restricted cash and cash equivalents at end of period	$32.9	$59.8

Supplemental cash flow information
Interest paid	$26.6	$27.0
Income taxes paid, net	3.8	3.5
Accruals for construction in progress	1.7	0.2

Nominee	Votes For	% For	Votes Withheld	% Withheld
R. Foster Duncan	52,371,896	91.70%	4,738,952	8.30%
Kevin T. Howell	55,251,141	96.74%	1,859,708	3.26%
Danielle S. Mottor	55,796,378	97.70%	1,314,471	2.30%
Gilbert S. Palter	55,765,345	97.64%	1,345,403	2.36%
James J. Moore, Jr.	55,870,700	97.83%	1,240,149	2.17%

Atlantic Power Corporation
Table 9 - Reconciliation of Net Income to Project Adjusted EBITDA
(in millions of U.S. dollars)
Unaudited
	Three months ended		Nine months ended
	September 30,		September 30,
	2020	2019	2020	2019
Net income attributable to Atlantic Power Corporation	$16.2	$12.6	$40.0	$22.7
Net income (loss) attributable to preferred share dividends of a subsidiary company	1.6	1.7	(2.5)	(3.1)
Net income	$17.8	$14.3	$37.5	$19.6
Income tax expense	2.5	0.2	5.2	2.4
Income from operations before income taxes	20.3	14.5	42.7	22.0
Administration	5.6	5.5	16.8	17.3
Interest expense, net	10.8	10.9	31.7	33.0
Foreign exchange loss (gain)	5.1	(2.8)	(6.2)	7.1
Other (income) expense, net	(3.8)	(0.2)	(2.7)	0.7
Project income	$38.0	$27.9	$82.3	$80.1

Reconciliation to Project Adjusted EBITDA
Change in the fair value of derivative instruments	($8.1)	($1.0)	($5.6)	$8.3
Depreciation and amortization	18.8	20.2	58.3	60.6
Interest, net	0.8	0.8	2.1	2.0
Insurance loss	-	1.0	-	1.0
Other project expense	-	-	-	1.2
Project Adjusted EBITDA	$49.5	$48.9	$137.1	$153.2

Atlantic Power Corporation
Table 2 - Project (Loss) Income and Project Adjusted EBITDA by Segment
(in millions of U.S. dollars)
Unaudited
	Three months ended			Six months ended
	June 30,			June 30,
	2020	2019	Variance	2020	2019	Variance
Project (loss) income
Solid Fuel	($7.9)	$1.6	($9.5)	($6.4)	$5.1	($11.5)
Natural Gas	17.4	10.0	7.4	36.8	28.4	8.4
Hydroelectric	9.9	14.4	(4.5)	20.3	25.2	(4.9)
Corporate	0.3	(4.3)	4.6	(6.3)	(6.5)	0.2
Total	$19.7	$21.7	($2.0)	$44.4	$52.2	($7.8)
Project Adjusted EBITDA
Solid Fuel	($1.6)	$8.3	($9.9)	$6.2	$18.4	($12.2)
Natural Gas	23.8	22.9	0.9	52.0	51.0	1.0
Hydroelectric	14.8	19.3	(4.5)	30.1	34.9	(4.8)
Corporate	(0.3)	0.3	(0.6)	(0.7)	0.2	(0.9)
Total	$36.7	$50.8	($14.1)	$87.6	$104.5	($16.9)

Atlantic Power Corporation
Table 9 - Reconciliation of Net (Loss) Income to Project Adjusted EBITDA
(in millions of U.S. dollars)
Unaudited
	Three months ended		Six months ended
	June 30,		June 30,
	2020	2019	2020	2019
Net (loss) income attributable to Atlantic Power Corporation	($5.7)	$1.2	$23.8	$10.1
Net income (loss) attributable to preferred share dividends of a subsidiary company	1.7	1.7	(4.1)	(4.8)
Net (loss) income	($4.0)	$2.9	$19.7	$5.3
Income tax expense	1.2	1.6	2.7	2.2
(Loss) income from operations before income taxes	(2.8)	4.5	22.4	7.5
Administration	4.5	5.0	11.2	11.8
Interest expense, net	10.2	11.0	21.0	22.1
Foreign exchange loss (gain)	9.3	4.9	(11.3)	9.9
Other (income) expense, net	(1.5)	(3.7)	1.1	0.9
Project income	$19.7	$21.7	$44.4	$52.2

Reconciliation to Project Adjusted EBITDA
Change in the fair value of derivative instruments	($3.1)	$7.0	$2.5	$9.4
Depreciation and amortization	19.4	20.0	39.3	40.2
Interest, net	0.7	0.8	1.4	1.5
Other project expense	-	1.3	-	1.2
Project Adjusted EBITDA	$36.7	$50.8	$87.6	$104.5

Atlantic Power Corporation
Table 1 - Summary of Financial Results
(in millions of U.S. dollars)
Unaudited	Three months ended
	March 31,
	2020	2019	Variance
Project revenue	$72.8	$73.0	($0.2)
Project income	24.7	30.6	(5.9)
Net income attributable to Atlantic Power Corporation	29.5	8.9	20.6
Earnings per share attributable to Atlantic Power Corporation - basic	0.28	0.08	0.20
Earnings per share attributable to Atlantic Power Corporation - diluted	0.23	0.07	0.16
Project Adjusted EBITDA	50.8	53.7	(2.9)
All amounts are in U.S. dollars and are approximate unless otherwise indicated. Project Adjusted EBITDA is not a recognized measure under generally accepted accounting principles in the United States ("GAAP") and does not have a standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to similar measures presented by other companies. Please refer to "Non-GAAP Disclosures" on page 15 of this news release for an explanation and a reconciliation of "Project Adjusted EBITDA" as used in this news release to Project income (loss).

Atlantic Power Corporation
Table 2 - Liquidity
(in millions of U.S. dollars)
Unaudited
	Dec. 31, 2019	Sept. 30, 2019
Cash and cash equivalents, parent	$48.9	$31.2
Cash and cash equivalents, projects⁽¹⁾	26.0	26.9
Total cash and cash equivalents	74.9	58.1
Revolving credit facility	200.0	200.0
Letters of credit outstanding	(78.3)	(76.9)
Availability under revolving credit facility	121.7	123.1
Total liquidity	$196.6	$181.2
Excludes restricted cash of⁽²⁾:	$7.7	$1.7
⁽¹⁾Dec. 31, 2019 includes $4.0 million from Cadillac insurance proceeds for use in reconstruction of the plant.
⁽²⁾ Dec. 31, 2019 includes $7.3 million from Cadillac insurance proceeds for use in reconstruction of the plant.

Atlantic Power Corporation
Table 3 - Bridge of 2020 Project Adjusted EBITDA Guidance to Cash Provided by Operating Activities
(in millions of U.S. dollars)
Unaudited
	2020 Guidance	2019 Actual
	(As of 2/27/20)
Project Adjusted EBITDA	$175 - $190	$196.1
Adjustment for equity method projects⁽¹⁾	(8)	(3.5)
Corporate G&A (cash)	(24)	(22.4)
Cash interest payments	(36)	(37.6)
Cash taxes	(4)	(2.3)
Decommissioning (San Diego projects)	(4)	(1.0)
Other (including changes in working capital)	-	15.4
Cash provided by operating activities	$100 - $115	$144.7
Note: For the purpose of providing bridge of Project Adjusted EBITDA guidance to a cash flow measure, the impact of changes in working capital on Cash provided by operating activities is assumed to be nil. See comment in preceding paragraph.
⁽¹⁾ For equity method projects, represents difference between Project Adjusted EBITDA and cash distribution.

Atlantic Power Corporation
Table 4 – Consolidated Balance Sheet
(in millions of U.S. dollars)
Unaudited
	December 31,	December 31,
	2019	2018
Assets
Current assets:
Cash and cash equivalents	$74.9	$68.3
Restricted cash	7.7	2.1
Accounts receivable	30.4	35.7
Insurance recovery receivable	13.5	-
Current portion of derivative instruments asset	0.7	4.2
Inventory	18.6	15.8
Prepayments	3.8	4.0
Income taxes receivable	1.8	0.3
Lease receivable	0.9	-
Other current assets	0.4	5.9
Total current assets	152.7	136.3
Property, plant, and equipment, net	502.1	549.5
Equity investments in unconsolidated affiliates	96.6	140.8
Power purchase agreements and intangible assets, net	144.3	170.1
Goodwill	21.3	21.3
Derivative instruments asset	-	0.3
Operating lease right-of-use assets	6.3	-
Deferred income taxes	10.4	7.0
Other assets	1.9	6.2
Total assets	$935.6	$1,031.5
Liabilities
Current liabilities:
Accounts payable	$8.9	$2.5
Accrued interest	2.6	2.3
Other accrued liabilities	20.8	20.2
Current portion of long-term debt	76.4	68.1
Current portion of derivative instruments liability	12.0	4.5
Convertible debentures	-	18.1
Operating lease liabilities	2.0	-
Other current liabilities	0.2	0.2
Total current liabilities	122.9	115.9
Long-term debt, net of unamortized discount and deferred financing costs	473.5	540.7
Convertible debentures, net of discount and unamortized deferred financing costs	81.1	75.7
Derivative instruments liability	15.9	15.4
Deferred income taxes	23.7	16.0
Power purchase agreements and intangible liabilities, net	19.8	21.2
Asset retirement obligations, net	51.5	49.2
Operating lease liabilities	4.8	-
Other long-term liabilities	4.7	5.0
Total liabilities	$797.9	$839.1
Equity
Common shares, no par value, unlimited authorized shares; 108,675,294 and 108,341,738 issued and outstanding at December 31, 2019 and December 31, 2018	1,259.9	1,260.9
Accumulated other comprehensive loss	(140.7)	(146.2)
Retained deficit	(1,164.2)	(1,121.6)
Total Atlantic Power Corporation shareholders' equity	(45.0)	(6.9)
Preferred shares issued by a subsidiary company	182.7	199.3
Total equity	137.7	192.4
Total liabilities and equity	$935.6	$1,031.5

Atlantic Power Corporation
Table 5 - Consolidated Statements of Operations
(in millions of U.S. dollars, except per share amounts)
Unaudited
	Three months ended			Twelve months ended
	December 31,		December 31,
	2019	2018		2019	2018
Project revenue:
Energy sales	$35.3	$36.1		$138.0	$130.9
Energy capacity revenue	25.6	25.0		125.4	97.9
Other	5.3	9.6		18.2	53.5
	66.2	70.7		281.6	282.3
Project expenses:
Fuel	17.1	19.1		72.3	73.1
Operations and maintenance	22.4	18.6		77.0	85.0
Depreciation and amortization	16.0	18.1		64.5	83.7
	55.5	55.8		213.8	241.8
Project other (loss) income:
Change in fair value of derivative instruments	(0.6)	(1.3)		(8.9)	2.2
Equity in (loss) earnings of unconsolidated affiliates	(37.5)	9.4		(3.0)	43.2
Interest, net	(0.2)	(0.4)		(1.1)	(1.8)
Impairment	(5.8)	-		(5.8)	-
Insurance loss	-	-		(1.0)	-
Other (expense) income, net	-	(2.5)		(1.2)	4.1
	(44.1)	5.2		(21.0)	47.7
Project (loss) income	(33.4)	20.1		46.8	88.2

Administrative and other expenses:
Administration	6.6	5.9		23.9	23.9
Interest expense, net	11.0	12.0		44.0	52.7
Foreign exchange loss (gain)	4.8	(13.7)		11.9	(22.8)
Other expense (income), net	0.3	(3.4)		1.0	(3.0)
	22.7	0.9		80.8	50.8
(Loss) income from operations before income taxes	(56.1)	19.2		(34.0)	37.4
Income tax expense (benefit)	7.3	(7.5)		9.8	0.2
Net (loss) income	(63.4)	26.7		(43.8)	37.2
Net income (loss) attributable to preferred shares of a subsidiary company	1.9	2.0		(1.2)	0.4
Net (loss) income attributable to Atlantic Power Corporation	($65.3)	$24.7		($42.6)	$36.8
Net (loss) earnings per share attributable to Atlantic Power Corporation shareholders:
Basic	($0.60)	$0.23		($0.39)	$0.33
Diluted	($0.60)	$0.18		($0.39)	$0.29
Weighted average number of common shares outstanding:
Basic	109.3	109.6		109.3	112.0
Diluted	109.3	140.7		109.3	141.8

Atlantic Power Corporation
Table 6 - Consolidated Statements of Cash Flows
(in millions of U.S. dollars)	Twelve months ended
Unaudited	December 31,
	2019		2018
Cash provided by operating activities:
Net (loss) income	($43.8)		$37.2
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	64.4		83.7
Gain on disposal of fixed assets and inventory	(0.9)		(0.4)
Asset retirement obligations	1.4		3.5
Gain on step acquisition of equity investment	-		(7.2)
Share-based compensation	1.5		2.7
Impairment	5.8		-
Insurance loss	1.0		-
Equity in loss (earnings) from unconsolidated affiliates	3.0		(43.2)
Distributions from unconsolidated affiliates	59.5		61.6
Unrealized foreign exchange loss (gain)	12.2		(22.0)
Change in fair value of derivative instruments	10.7		(5.5)
Amortization of debt discount, deferred financing costs and operating lease right-of-use assets		8.6	9.4
Deferred income taxes	4.8		(3.6)
Change in other operating balances
Accounts receivable	8.2		18.8
Inventory	(1.8)		1.6
Prepayments and other assets	3.9		8.7
Accounts payable	5.1		(1.2)
Accruals and other liabilities	1.1		(6.6)
Cash provided by operating activities	144.7		137.5

Cash used in investing activities:
Investment in unconsolidated affiliate	(18.7)		-
Insurance proceeds	11.3		-
Cash paid for acquisition, net of cash received	(8.6)		(12.8)
Deposit for acquisition	-		(2.6)
Proceeds from sales of assets and equity investments, net	1.6		0.2
Purchase of property, plant and equipment	(7.3)		(1.8)
Cash used in investing activities	(21.7)		(17.0)

Cash used in financing activities:
Proceeds from convertible debenture issuance	-		92.2
Repayment of convertible debentures	(18.5)		(88.1)
Common share repurchases	(2.5)		(16.6)
Preferred share repurchases	(8.0)		(8.0)
Repayment of corporate and project-level debt	(72.3)		(100.3)
Cash payments for vested LTIP units, including amounts withheld for taxes	(2.1)		(0.8)
Deferred financing costs	-		(5.1)
Dividends paid to preferred shareholders	(7.4)		(8.3)
Cash used in financing activities:	(110.8)		(135.0)

Net increase (decrease) in cash, restricted cash and cash equivalents	12.2		(14.5)
Cash, restricted cash and cash equivalents at beginning of period	70.4		84.9
Cash, restricted cash and cash equivalents at end of period	$82.6		$70.4

Supplemental cash flow information
Interest paid	$37.6		$41.3
Income taxes paid, net	$2.3		$3.1
Accruals for construction in progress	$0.3		($1.5)

Atlantic Power Corporation
Table 7 - Project Income (Loss) and Project Adjusted EBITDA by Segment
(in millions of U.S. dollars)
Unaudited
	Three months ended		Twelve months ended
	December 31,		December 31,
	2019	2018	2019	2018
Project (loss) income
Solid Fuel	($60.2)	$0.2	($49.8)	$19.7
Natural Gas	16.9	12.5	68.5	33.3
Hydroelectric	9.4	10.3	36.0	35.8
Corporate	0.5	(3.0)	(7.9)	(0.6)
Total	($33.4)	$20.1	$46.8	$88.2
Project Adjusted EBITDA
Solid Fuel	$1.3	$6.7	$32.7	$46.7
Natural Gas	27.6	24.9	108.2	90.4
Hydroelectric	14.3	14.8	55.5	47.5
Corporate	(0.3)	0.2	(0.3)	0.5
Total	$42.9	$46.6	$196.1	$185.1

Atlantic Power Corporation

Company Summary

Financial Data:

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Atlantic Power Corporation
Table 8 - Reconciliation of Net (Loss) Income to Project Adjusted EBITDA
(in millions of U.S. dollars)
Unaudited
	Three months ended		Twelve months ended
	December 31,		December 31,
	2019	2018	2019	2018
Net (loss) income attributable to Atlantic Power Corporation	($65.3)	$24.7	($42.6)	$36.8
Net income (loss) attributable to preferred share dividends of a subsidiary company	1.9	2.0	(1.2)	0.4
Net (loss) income	($63.4)	$26.7	($43.8)	$37.2
Income tax expense (benefit)	7.3	(7.5)	9.8	0.2
(Loss) income from operations before income taxes	(56.1)	19.2	(34.0)	37.4
Administration	6.6	5.9	23.9	23.9
Interest expense, net	11.0	12.0	44.0	52.7
Foreign exchange loss (gain)	4.8	(13.7)	11.9	(22.8)
Other expense (income), net	0.3	(3.4)	1.0	(3.0)
Project (loss) income	($33.4)	$20.1	$46.8	$88.2

Reconciliation to Project Adjusted EBITDA
Depreciation and amortization	$20.3	$21.8	$80.7	$99.7
Interest expense, net	0.4	0.8	2.5	3.4
Change in the fair value of derivative instruments	0.6	1.3	8.9	(2.2)
Impairment	55.0	-	55.0	-
Insurance loss	-	-	1.0	-
Other expense (income), net	-	2.5	1.2	(4.0)
Project Adjusted EBITDA	$42.9	$46.6	$196.1	$185.1

Notes:

	1.	Represents 10% of the public float. As of December 17, 2019, the public float of the 6.0% Cdn$115.0 Million Debentures was $115,000,000.

	2.	Represents 25% of the 6-month Average Daily Trading Value ("ADTVA") on the TSX. The ADTVA for the 6.0% Cdn$115.0 Million Debentures is Cdn$20,984.

	3.	For the Common Shares, represents 10% of the public float. For the Series 1 Preferred Shares, Series 2 Preferred Shares and Series 3 Preferred Shares, represents 10% of the public float. As of December 17, 2019, the public float of the Common Shares was 105,787,997; the public float of the Series 1 Preferred Shares was 3,847,500; the public float of the Series 2 Preferred Shares was 2,230,717; and the public float of the Series 3 Preferred Shares was 1,330,305.

	4.	Represents the greater of 25% of the 6-month Average Daily Trading Volume ("ADTVO") on the TSX or 1,000 shares. The ADTVO for the Common Shares is 36,972; the ADTVO for the Series 1 Preferred Shares is 1,899; the ADTVO for the Series 2 Preferred Shares is 1,147; and the ADTVO for the Series 3 Preferred Shares is 1,041.

Atlantic Power Corporation
Table 3 - Bridge of 2019 Project Adjusted EBITDA Guidance to Cash Provided by Operating Activities
(in millions of U.S. dollars)
Unaudited
	2019 Guidance	2019 Guidance
	(Revised 10/31/19)	(Initial 2/28/19)
Project Adjusted EBITDA	$185 - $195	$175 - $190
Adjustment for equity method projects⁽¹⁾	(5)	(5)
Corporate G&A expense	(22)	(22)
Cash interest payments	(39)	(39)
Cash taxes	(2)	(4)
Decommissioning (San Diego projects)	(1)	(5)
Other (including changes in working capital)	-	-
Cash provided by operating activities	$115 - $125	$100 - $115
Note: For the purpose of providing bridge of Project Adjusted EBITDA guidance to a cash flow measure, the impact of changes in working capital on Cash provided by operating activities is assumed to be nil. See comment in preceding paragraph.
⁽¹⁾ For equity method projects, represents difference between Project Adjusted EBITDA and cash distribution.

Atlantic Power Corporation
Table 8 - Reconciliation of Net Income (Loss) to Project Adjusted EBITDA
(in millions of U.S. dollars)
Unaudited
	Three months ended		Nine months ended
	September 30,		September 30,
	2019	2018	2019	2018
Net income (loss) attributable to Atlantic Power Corporation	$12.6	($3.2)	$22.7	$12.1
Net income (loss) attributable to preferred share dividends of a subsidiary company	1.7	(1.5)	(3.1)	(1.6)
Net income (loss)	$14.3	($4.7)	$19.6	$10.5
Income tax expense	0.2	3.6	2.4	7.7
Income (loss) from operations before income taxes	14.5	(1.1)	22.0	18.2
Administration	5.5	5.7	17.3	17.9
Interest expense, net	10.9	14.6	33.0	40.7
Foreign exchange (gain) loss	(2.8)	4.5	7.1	(9.1)
Other (income) expense, net	(0.2)	2.5	0.7	0.3
Project income	$27.9	$26.2	$80.1	$68.0

Reconciliation to Project Adjusted EBITDA
Depreciation and amortization	$20.2	$25.0	$60.6	$78.0
Interest expense, net	0.8	(0.6)	2.0	2.7
Change in the fair value of derivative instruments	(1.0)	-	8.3	(3.5)
Insurance loss	1.0	-	1.0	-
Other (income) expense, net	-	(5.2)	1.2	(6.7)
Project Adjusted EBITDA	$48.9	$45.4	$153.2	$138.5

Atlantic Power Corporation Table 8 - Reconciliation of Net Income (Loss) to Project Adjusted EBITDA (in millions of U.S. dollars) Unaudited

	Three months ended		Six months ended
	June 30,		June 30,
	2019	2018	2019	2018
Net income (loss) attributable to Atlantic Power Corporation	$1.2	($0.6)	$10.1	$15.2
Net income (loss) attributable to preferred share dividends of a subsidiary company	1.7	1.6	(4.8)	(0.1)
Net income	$2.9	$1.0	$5.3	$15.1
Income tax expense	1.6	0.9	2.2	4.2
Income from operations before income taxes	4.5	1.9	7.5	19.3
Administration	5.0	6.2	11.8	12.2
Interest expense, net	11.0	11.1	22.1	26.1
Foreign exchange loss (gain)	4.9	(5.4)	9.9	(13.6)
Other (income) expense, net	(3.7)	(0.2)	0.9	(2.2)
Project income	$21.7	$13.6	$52.2	$41.8

Reconciliation to Project Adjusted EBITDA
Depreciation and amortization	$20.1	$25.1	$40.2	$53.1
Interest expense, net	0.8	0.9	1.5	1.9
Change in the fair value of derivative instruments	7.0	0.2	9.4	(3.6)
Other expense, net	1.2	-	1.2	-
Project Adjusted EBITDA	$50.8	$39.8	$104.5	$93.2

Atlantic Power Corporation
Table 1 – Summary of Financial Results
(in millions of U.S. dollars) Unaudited
	Three months ended December 31,		Twelve months ended December 31,
	2018	2017	2018	2017
Project revenue	$70.7	$100.0	$282.3	$431.0
Project income (loss)	20.1	(39.7)	88.2	(47.4)
Net income (loss) attributable to Atlantic Power Corporation	24.7	(41.1)	36.8	(98.6)

Cash provided by operating activities	39.7	30.5	137.5	169.2
Cash (used in) provided by investing activities	(0.1)	1.4	(17.0)	(4.3)
Cash (used in) financing activities	(27.1)	(81.9)	(135.0)	(178.9)

Project Adjusted EBITDA	46.6	62.1	185.1	288.8
All amounts are in U.S. dollars and are approximate unless otherwise indicated. Project Adjusted EBITDA is not a recognized measure under generally accepted accounting principles in the United States ("GAAP") and does not have a standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to similar measures presented by other companies. Please refer to "Non-GAAP Disclosures" on page 15 of this news release for an explanation and a reconciliation of "Project Adjusted EBITDA" as used in this news release to Project income (loss), the most directly comparable measure on a GAAP basis, and Net Income (loss).

Atlantic Power Corporation
Table 2 – Liquidity (in millions of U.S. dollars)
Unaudited
	Dec. 31, 2018	Sept. 30, 2018
Cash and cash equivalents, parent	$45.9	$39.1
Cash and cash equivalents, projects	22.4	18.5
Total cash and cash equivalents	68.3	57.6
Revolving credit facility	200.0	200.0
Letters of credit outstanding	(76.9)	(77.0)
Availability under revolving credit facility	123.1	123.0
Total liquidity	$191.4	$180.6

Excludes restricted cash of:	$2.1	$0.3

Atlantic Power Corporation Table 3 – Bridge of 2019 Project Adjusted EBITDA Guidance to Cash Provided by Operating Activities (in millions of U.S. dollars) Unaudited

	2019 Guidance (initiated 2/28/19)	2018 Actual
Project Adjusted EBITDA	$175 - $190	$185.1
Adjustment for equity method projects⁽¹⁾	(5)	(0.0)
Corporate G&A expense	(22)	(23.9)
Cash interest payments	(39)	(41.3)
Cash taxes	(4)	(3.1)
Decommissioning (San Diego projects)	(5)	(0.5)
Other (including changes in working capital)	-	21.2
Cash provided by operating activities	$100 - $115	$137.5
Note: For the purpose of providing bridge of Project Adjusted EBITDA guidance to a cash flow measure, the impact of changes in working capital on Cash provided by operating activities is assumed to be nil. See comment in preceding paragraph.
⁽¹⁾ For equity method projects, represents difference between Project Adjusted EBITDA and cash distribution from equity method projects.


Atlantic Power Corporation Table 4 – Consolidated Balance Sheet (in millions of U.S. dollars) Unaudited
	Dec. 31,	Dec. 31,
	2018	2017
Assets
Current assets:
Cash and cash equivalents	$68.3	$78.7
Restricted cash	2.1	6.2
Accounts receivable	35.7	52.7
Current portion of derivative instruments asset	4.2	2.7
Inventory	15.8	17.7
Prepayments	4.0	6.9
Income taxes receivable	0.3	1.0
Other current assets	5.9	3.1
Total current assets	136.3	169.0
Property, plant and equipment, net	549.5	602.3
Equity investments in unconsolidated affiliates	140.8	163.7
Power purchase agreements and intangible assets, net	170.1	191.2
Goodwill	21.3	21.3
Derivative instruments asset	0.3	2.8
Other assets	6.2	8.5
Total assets	$1,024.5	$1,158.8

Liabilities
Current liabilities:
Accounts payable	$2.5	$2.2
Accrued interest	2.3	0.3
Other accrued liabilities	20.2	25.5
Current portion of long-term debt	68.1	99.5
Current portion of derivative instruments liability	4.5	4.4
Convertible debentures	18.1	-
Other current liabilities	0.2	1.0
Total current liabilities	115.9	132.9
Long-term debt, net of unamortized discount and deferred financing costs	540.7	616.3
Convertible debentures, net of discount and unamortized deferred financing costs	75.7	105.4
Derivative instruments liability	15.4	19.9
Deferred income taxes	9.0	11.7
Power purchase agreements and intangible liabilities, net	21.2	24.1
Asset retirement obligations, net	49.2	45.3
Other long-term liabilities	5.0	6.4
Total liabilities	$832.1	$962.0

Equity
Common shares, no par value, unlimited authorized shares; 108,341,738 and 115,211,976 issued and outstanding at Dec. 31, 2018 and Dec. 31, 2017, respectively	1,260.9	1,274.8
Accumulated other comprehensive loss	(146.2)	(134.8)
Retained deficit	(1,121.6)	(1,158.4)
Total Atlantic Power Corporation shareholders' equity	(6.9)	(18.4)
Preferred shares issued by a subsidiary company	199.3	215.2
Total equity	192.4	196.8
Total liabilities and equity	$1,024.5	$1,158.8

Atlantic Power Corporation Table 5 – Consolidated Statements of Operations (in millions of U.S. dollars, except per share amounts) Unaudited

	Three months ended December 31,			Twelve months ended December 31,
		2018	2017	2018	2017
Project revenue:
Energy sales		$36.1	$35.3	$130.9	$148.9
Energy capacity revenue		25.0	20.1	97.9	105.8
Other		9.6	44.6	53.5	176.3
		70.7	100.0	282.3	431.0
Project expenses:
Fuel		19.1	27.2	73.1	106.3
Operations and maintenance		18.6	24.4	85.0	87.8
Depreciation and amortization		18.1	22.7	83.7	113.1
		55.8	74.3	241.8	307.2
Project other income (loss):
Change in fair value of derivative instruments		(1.3)	7.9	2.2	2.1
Equity in earnings (loss) of unconsolidated affiliates		9.4	(18.7)	43.2	(54.8)
Interest, net		(0.4)	(10.8)	(1.8)	(17.5)
Impairment		-	(43.9)	-	(101.1)
Other (expense) income, net		(2.5)	0.1	4.1	0.1
		5.2	(65.4)	47.7	(171.2)
Project income (loss)		20.1	(39.7)	88.2	(47.4)
Administrative and other expenses:
Administration		5.9	6.0	23.9	23.6
Interest expense, net		12.0	14.7	52.7	64.2
Foreign exchange (gain) loss		(13.7)	(1.4)	(22.8)	16.3
Other income, net		(3.4)	(0.4)	(3.0)	(0.4)
		0.9	18.9	50.8	103.7
Income (loss) from operations before income taxes		19.2	(58.6)	37.4	(151.1)
Income tax (benefit) expense		(7.5)	(19.7)	0.2	(58.1)
Net income (loss)		26.7	(38.9)	37.2	(93.0)
Net income attributable to preferred share dividends of a subsidiary company		2.0	2.2	0.4	5.6
Net income (loss) attributable to Atlantic Power Corporation		$24.7	($41.1)	$36.8	($98.6)
Net earnings (loss) per share attributable to Atlantic Power Corporation shareholders:
Basic		$0.23	($0.36)	$0.33	($0.86)
Diluted		0.18	(0.36)	0.29	(0.86)
Weighted average number of common shares outstanding:
Basic		109.6	115.2	112.0	115.1
Diluted		140.7	115.2	141.8	115.1