Atlantic Power 8-K APLP HOLDINGS limited partnership

APLP HOLDINGS limited partnership

AND SUBSIDIARIES

Consolidated Financial Statements (unaudited)

For the Years Ended December 31,  2018 and 2017 

APLP HOLDINGS LIMITED PARTNERSHIP

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (in millions of U.S. dollars)

(unaudited)

	December 31,		December 31,
	2018		2017
Assets
Current assets:
Cash and cash equivalents	$	22.4	$	29.1
Restricted cash		2.1		6.1
Accounts receivable - trade, unbilled and other		35.5		52.3
Accounts receivable - related party		33.6		36.6
Current portion of derivative instruments asset		4.2		2.7
Inventory		15.8		17.7
Prepayments and other current assets		6.7		12.2
Total current assets		120.3		156.7
Property, plant, and equipment, net		550.5		603.6
Equity investment in unconsolidated affiliates		140.9		163.6
Power purchase agreements and intangible assets, net		170.1		191.2
Goodwill		21.4		21.4
Derivative instruments asset		0.3		2.8
Other assets		5.8		8.1
Total assets	$	1,009.3	$	1,147.4
Liabilities
Current liabilities:
Accounts payable	$	2.1	$	1.7
Related party payables		20.8		27.2
Accrued interest		0.2		0.3
Other accrued liabilities		14.9		23.1
Current portion of long-term debt		68.1		99.5
Current portion of derivative instruments liability		3.3		4.4
Other current liabilities		0.1		1.0
Total current liabilities		109.5		157.2
Long-term debt, net of unamortized discount and deferred financing costs		540.7		616.3
Derivative instruments liability		15.5		19.9
Deferred income taxes		9.4		12.3
Power purchase and fuel supply agreement liabilities, net		21.2		24.1
Other long-term liabilities		51.0		47.6
Total liabilities		747.3		877.4
Commitments and contingencies
Equity
Partners' capital		1,128.5		1,325.8
Accumulated other comprehensive loss		(144.4)		(133.4)
Retained deficit		(921.4)		(1,137.6)
Total APLP Holdings Limited Partnership equity		62.7		54.8
Preferred shares issued by a subsidiary company		199.3		215.2
Total equity		262.0		270.0
Total liabilities and equity	$	1,009.3	$	1,147.4

APLP HOLDINGS LIMITED PARTNERSHIP

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 (in millions of U.S. dollars)

(unaudited)

	Years ended December 31,
	2018		2017
Project revenue:
Energy sales	$	130.9	$	148.9
Energy capacity revenue		97.9		105.7
Other		53.5		176.3
		282.3		430.9
Project expenses:
Fuel		73.1		106.4
Operations and maintenance		84.6		88.3
Depreciation and amortization		83.7		113.1
		241.4		307.8
Project other income (expense):
Change in fair value of derivative instruments		2.2		2.1
Equity in earnings (loss) of unconsolidated affiliates		43.2		(54.8)
Interest expense, net		(1.8)		(17.5)
Impairment		-		(101.1)
Other income		4.1		0.1
		47.7		(171.2)
Project income (loss)		88.6		(48.1)
Administrative and other expenses (income):
Administration		5.1		4.1
Interest, net		42.1		55.3
Foreign exchange (gain) loss		(13.3)		12.2
Other expense		14.1		13.0
		48.0		84.6
Income (loss) before income taxes		40.6		(132.7)
Income tax benefit		(0.2)		(59.0)
Net income (loss)		40.8		(73.7)
Net income attributable to preferred shares of a subsidiary company		0.4		5.6
Net income (loss) attributable to APLP Holdings Limited Partnership	$	40.4	$	(79.3)

APLP HOLDINGS LIMITED PARTNERSHIP

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in millions of U.S. dollars)

(unaudited)

	December 31,
	2018		2017
Cash flows from operating activities:
Net income (loss)	$	40.8	$	(73.7)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		83.7		113.1
Asset retirement obligations		3.5		-
Loss on sale of assets		(0.4)		0.1
Gain on purchase and cancellation of convertible debentures		(7.2)		-
Stock-based compensation expense		2.7		2.1
Distributions from unconsolidated affiliates		61.6		47.3
Equity in (earnings) loss from unconsolidated affiliates		(43.2)		54.9
Unrealized foreign exchange (gain) loss		(12.8)		11.0
Change in fair value of derivative instruments		(2.2)		(2.1)
Change in deferred income taxes		(3.7)		(62.6)
Impairment		-		101.1
Change in other operating balances
Accounts receivable		21.6		(11.5)
Inventory		1.6		(1.6)
Prepayments, supplies and other assets		14.8		10.1
Accounts payable		(4.9)		(1.5)
Accruals and other liabilities		(8.7)		0.2
Cash flows provided by operating activities		147.2		186.9
Cash flows used in investing activities:
Proceeds from sale of equity investment		-		1.0
Cash paid for acquisition, net of cash received		(12.8)		-
Deposit for acquisition		0.2		-
Purchase of property, plant and equipment		(1.8)		(5.3)
Cash flows used in investing activities		(14.4)		(4.3)
Cash flows used in financing activities:
Dividends paid to Parent		(39.0)		(67.9)
Contribution from Parent		12.8		59.6
Dividends paid on preferred shares of a subsidiary company		(8.2)		(8.7)
Repurchase of preferred shares of a subsidiary company		(8.0)		(3.1)
Cash payments for vested LTIP units withheld for taxes		(0.7)		(0.7)
Repayment of corporate and project-level debt		(100.3)		(165.9)
Cash flows used in financing activities		(143.4)		(186.7)
Net decrease in cash, restricted cash and cash equivalents		(10.6)		(4.1)
Cash, restricted cash and cash equivalents at beginning of period		35.1		39.2
Cash, restricted cash and cash equivalents at end of period	$	24.5	$	35.1
Supplemental cash flow information
Interest paid	$	36.6	$	65.7
Taxes paid	$	3.2	$	3.7
Accruals for construction	$	-	$	1.2