Boralex’s Third Quarter Results
Montréal,
August 1, 2002 – For the third quarter ended June 30, 2002, Boralex Inc.
(the “Corporation••), reports that its revenue totalled $17.6 million
as compared to $18.4 million in the same period in the previous year. The revenue
generated by three US power stations, located in Maine and acquired at the end
of 2001, was more than offset by the reduction in revenue following the sale of
the power stations to Boralex Power Income Fund (the “Fund”). The Corporation
incurred a net loss in the third quarter of $0.7 million, or $0.02 per share,
as compared to the net income of $0.1 million, or $0.00 per share, for the same
period in previous year. This loss is principally the result of the following
factors which total $0.055 per share:
_ _ _ _
The
temporary shutdown of the Stratton and Athens power stations due to the high cost
of wood residue;
A three week shutdown of the Livermore
Falls power station in April following a failure of its turbine generator; The
temporary shutdown of the Ashland power station, in June, due to difficult market
conditions for electricity;
A higher effective
tax rate related to the taxation of the distributions received from the Fund.
For the nine month period ended June 30, 2002, Boralex
generated revenue of $79.4 million as compared to $62.7 million in the corresponding
period in 2001. The revenue generated by the three new US power stations more
than offset the revenue lost from sale of seven power stations to the Fund. Net
income for the period was $59.6 million, or $1.99 per share as compared to $4.9
million, or $0.21 per share for the corresponding period last year. The results
for this period include an unusual after-tax gain of $58.1 million, or $1.94 per
share resulting from the sale of the power stations to the Fund in the second
quarter of the year. Following is a breakdown of the Corporation’s net income
(loss) for the reporting periods.
| | Quarter
ended
June 30, 2002 | Nine month
period ended
June 30, 2002 |
| | $ | Per
share | $ | Per
share |
| Unusual Gain | | | 58.1 | 1.94 |
| Operations | (0.7) | (0.02) | 1.5 | 0.05 |
| Total | ($0.7)
| ($0.02) | $59.6 | $1.99 |
“Current
market conditions in the Northeast USA electricity markets are the driving force
behind our continuing efforts to reduce the operating cost of our US power stations,
especially for wood residue. On the other hand we continue to look for major acquisitions
which will diversify our base of generation of electricity and that will be accretive
to earnings per share. Boralex has the distinct advantage, at this time, of having
a very strong balance sheet which is essential under these difficult conditions.
All our efforts are focused on increasing the Corporation’s profitability
in line with our business plan”, stated the President and Chief Executive
Officer, Mr. Jacques Gauthier.
Boralex
operates 11 power stations from biomass, natural gas and hydroelectricity in Quebec,
the United States and in France. Also, Boralex Power Income Fund, which is managed
by Boralex and in which Boralex holds an important position, operates eight power
stations in Quebec from the same sources of fuel. Together, these two entities
have nearly 230 employees and have a total installed capacity of 350 MW. Boralex’s
stock trades on the Toronto Stock Exchange under the ticker symbol BLX.A and Boralex
Power Income Fund’ stock trades under the ticker symbol BPT.UN.
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Conference Call : Boralex’s Third Quarter Results
Boralex
invites the financial analysts to participate in a conference call following the
release of the Corporation’s third quarter results, Tuesday, August 1st,
2002 at 11:00 A.M. , by dialing 514-985-7014 or 1 888-942-8096. After this date,
the recording will be accessible at your convenience until August, 7, 2002, at
1 800-558-5253, access code 20798308.
For further information, please
contact:
Mr. Germain Lecours
Vice-President and Chief Financial Officer
Boralex Inc.
Telephone: (514) 985-1348
Fax: (514) 284-9895
E-mail:
glecoursr@cascades.com
Mrs. Carole Villeneuve
Director of Communications
Boralex Inc.
Telephone: (514) 985-1353
Fax: (514) 985-1355
E-mail:
cvilleneuve@cascades.com
To get
the complete version of the press release
