Great Lakes Hydro Income Fund Reports Fourth Quarter and Year-end Results
Several facility refurbishments completed in 2007
| Letter to unitholders | Unaudited Consolidated Financial Statements | Supplemental Information |
GATINEAU, Québec, February 12, 2008 – Great Lakes Hydro Income Fund today reported its financial and operating results for the quarter and year ended December 31, 2007. Additional information is provided in the Fund’s Letter to Unitholders and Supplemental Information available at www.greatlakeshydro.com under Investor Relations/Financial Highlights.
For the full-year period, power generation totaled 3,487 gigawatthours (GWh) compared with 4,151 GWh a year earlier and a long-term average of 3,875 GWh. Revenues were $155.8 million and income before non-cash items was $65.3 million. In the fourth quarter of 2007, power generation totaled 742 GWh, revenues amounted to $33.3 million and income before non-cash items was $11.3 million. Weak hydrological conditions, primarily in Québec and New England, accounted for the lower generation levels and financial results in 2007. By comparison, water inflows in the previous year were particularly strong and exceeded the long-term average.
The Fund paid distributions to unitholders of $60.3 million in 2007. The increase over a year ago reflects the full-year contribution from the Carmichael Falls, Ontario facility acquired on July 1, 2006.
| 2007 FINANCIAL AND OPERATING HIGHLIGHTS | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Unaudited (C$ millions, except where noted) |
Three months ended | Year ended | |||||||
| December 31 | December 31 | ||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||
| Revenues | $ | 33.3 | $ | 42.0 | $ | 155.8 | $ | 177.1 | |
| Income before non-cash items | 11.3 | 17.3 | 65.3 | 82.6 | |||||
| Distribution | 15.0 | 15.1 | 60.3 | 60.1 | |||||
| Per unit | |||||||||
| Income before non-cash items | 0.23 | 0.36 | 1.35 | 1.71 | |||||
| Distribution | 0.31 | 0.31 | 1.25 | 1.24 | |||||
| Power generated (GWh) | 742 | 968 | 3,487 | 4,151 | |||||
| Average price (¢/KWh) | 4.5 | 4.3 | 4.5 | 4.3 | |||||
In 2007, the total investment in sustaining capital expenditures and enhancement initiatives amounted to $35.7 million, with an additional $4.1 million invested in major maintenance. Major projects were completed at the Lois facility in B.C., the High Falls station in Quebec and the Millinocket facility in Maine, from which a positive contribution to financial results is expected in 2008.
“Our capital program has averaged $32 million over the last four years,” said Richard Legault, President and Chief Executive Officer. “In 2008, we expect our investment in our capital program to be approximately $18.6 million, which is the annual average required to preserve the long-term value and reliability of our assets.”
YEAR-END CONFERENCE CALL
A conference call for investors and media to review the fourth quarter and year results for 2007 will be held on Wednesday, February 13, 2008 at 10:00 a.m. (ET). To participate in the conference call, please dial 416-644-3414 or 1-800-733-7571 toll-free in North America, at 9:50 a.m. (ET). For those unable to participate in the conference call, a taped rebroadcast will also be available until midnight February 15, 2008. To access this rebroadcast, please call 1-877-289-8525 toll free in North America, and enter the passcode 21259979#. The conference call will also be webcast live on the Fund’s website at www.greatlakeshydro.com, where it will be archived for three months.
DISTRIBUTIONS
The schedule below sets out the cash distribution history for the last twelve months:
| RECORD DATE | PAYMENT DATE | DISTRIBUTION PER UNIT |
|---|---|---|
| November 30, 2007 | December 31, 2007 | 10.417 cents |
| October 31, 2007 | November 30, 2007 | 10.417 cents |
| September 30, 2007 | October 31, 2007 | 10.417 cents |
| August 31, 2007 | September 28, 2007 | 10.417 cents |
| July 31, 2007 | August 31, 2007 | 10.417 cents |
| June 30, 2007 | July 31, 2007 | 10.417 cents |
| May 31, 2007 | June 29, 2007 | 10.417 cents |
| April 30, 2007 | May 31, 2007 | 10.417 cents |
| March 31, 2007 | April 30, 2007 | 10.417 cents |
| February 28, 2007 | March 30, 2007 | 10.417 cents |
| January 31, 2007 | February 28, 2007 | 10.417 cents |
| December 29, 2006 | January 31, 2007 | 10.417 cents |
TAX INFORMATION
Tax information will be forwarded to the Canadian Depository for Securities Limited and will be posted on the Fund’s web site by Monday, March 3, 2008. Brokerage firms receive the tax information from the Canadian Depository System, and are responsible for preparing the required tax slips (T5013) for mailing to unitholders by March 31, 2008.
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements concerning the Great Lakes Hydro Income Fund (“Fund”) business and operations. Forward looking statements can be identified by the use of words, such as “believe”, “expect”, “well positioned”, “long-term”, “grow”, “expand”, “enhance” or variations of such words and phrases or state that certain actions, events or results “will” be taken, occur or be achieved. Forward looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results or performance expressed or implied by the forward statements. More details relating to risk factors can be found in the Fund’s annual information form in the section entitled Risk Factors.
Examples of such statements include, but are not limited to factors relating to production and the business, financial position, operations and prospects for the Fund. They include (1) the Fund’s level of generation; (2) the Fund’s cost of production; (3) interest rates as they bear on the Fund’s indebtedness; (4) planned capital expenditures; (5) the impact of changes in the Canadian dollar – U.S. dollar on the Fund’s costs and results of operations; (6) the negotiation of collective agreements with its unionized employees; (7) business and economic conditions; (8) the legislation governing air emissions, discharges into water, waste, hazardous materials and workers’ health and safety as well as the impact of future legislation and regulations on expenses,
capital expenditures and restrictions on operations; (9) regulatory investigations, claims, lawsuits and other proceedings; and (10) reliance on the guaranteed price for electricity by Brookfield Power Inc. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied in the forward-looking statements contained herein, and as a such, you are cautioned not to place undue reliance on these forward-looking statements.
These forward-looking statements represent our views as of the date of this news release. While the Fund anticipates that subsequent events and developments may cause the Fund’s views to change, the Fund disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Fund’s views as of any date subsequent to the date of this news release.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income fund. We are the largest power income fund in North America with 1,015 megawatts of power generating capacity and an average annual production of 3,875 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from environmentally friendly hydroelectric resources. The Fund owns, operates and manages 26 high quality hydroelectric generating stations located on eight river systems in four distinct geographic regions across North America: Quebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises all the power operations of Brookfield Asset Management, owns 50.1% of the Fund’s outstanding units.
Great Lakes Hydro Income Fund units are listed for trading on the Toronto Stock Exchange under the symbol GLH.UN.
For further information:
Grace Pollock
Director, Investor Relations
819-561-8072unitholderenquiries@greatlakeshydro.com