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Press release from Marketwire

Northland Power Announces 2010 Results

Thursday, February 24, 2011

Northland Power Announces 2010 Results21:48 EST Thursday, February 24, 2011TORONTO, ONTARIO--(Marketwire - Feb. 24, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR ITS POSSESSIONS. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW. Northland Power Inc. ("Northland") (TSX:NPI)(TSX:NPI.PR.A)(TSX:NPI.DB)(TSX:NPI.DB.A) reported the financial results today for Northland Power Income Fund ("Northland" or the "Fund") for the quarter and year ended December 31, 2010. Total cash distributions declared to Unitholders for the year amounted to $1.08 per unit.FINANCIAL AND OPERATING HIGHLIGHTS3 Months Ended Dec. 3112 Months Ended Dec. 312010200920102009FINANCIAL (thousands, except per unit amounts)Sales$90,173$57,530$304,170$193,370Income from operations$28,142$19,064$94,651$65,315EBITDA$37,531$26,254$137,807$91,534Net income$40,780$26,088$1,418$35,264Standardized distributable cash($102,316)($18,082)($231,391)($78,219)Distributable cash$12,007$20,546$63,816$70,522Cash distributions declared to Unitholders$20,137$19,270$78,312$70,400Per Trust Unit – basicStandardized distributable cash($1.38)($0.26)($3.20)($1.21)Distributable cash$0.16$0.29$0.88$1.09Cash distributions declared to Unitholders$0.27$0.27$1.08$1.08Energy VolumesElectricity (megawatthours)741,678434,8362,448,9811,454,020Steam (thousands of pounds)516,244271,0311,625,1821,031,247Fuel consumption (thousands of gigajoules)5,4343,36918,30312,387The Fund completed a successful fourth quarter before converting to Northland Power Inc., a Canadian public corporation, effective January 1, 2011. Construction continued on the Spy Hill, North Battleford and Mont Louis projects which in aggregate represent about $1 billion of capital investment; all remain within their schedules and on budget. A $106 million debt financing for Mont Louis was closed in November. In December, the Fund won a 24 MW wind project in partnership with the community of Frampton, Quebec and sold its 54 MW Mont Miller wind farm to NextEra Energy Canada. Also in December, the Ontario Minister of Energy directed the Ontario Power Authority to initiate negotiations in 2011 on combined heat and power projects and extensions to power purchase agreements (PPAs) scheduled to end later in the decade - Northland expects to be involved in both sets of negotiations in its efforts to secure PPAs for two combined heat and power projects that it has under development and to extend the terms of the PPAs at the Cochrane and Kirkland Lake facilities that are managed by Northland. Subsequent to year end, Northland announced a 50-50 partnership with the United Chiefs and Councils of Mnidoo Mnising First Nations ("UCCM") on a 60 MW wind farm on Manitoulin Island. The wind farm has a 20- year agreement to sell power under Ontario's Feed-in Tariff (FIT) program.The following comments are made with reference to the attached unaudited consolidated financial statements of the Fund and supplemental facility information. Where a comment refers to activities or events prior to January 1, 2011, "Northland" refers to Northland Power Income Fund. In referring to subsequent events, "Northland" refers to Northland Power Inc.The Fund's facilities generally operated well during the year. Consolidated sales in 2010 were $304.2 million and income from operations was $94.7 million, both up over 50% from 2009 due to contributions from the Thorold facility for 9 months (nil in 2009) and the Jardin d'Éole wind farm for 12 months (about 6 weeks in 2009).Largely as a result of Northland's aggressive growth program and one-time expenses, distributable cash in 2010 at $63.8 million was $6.7 million lower than the 2009 level. Growth-related items included $3.3 million of dividends on the preferred shares and $4.6 million of interest on the convertible debentures issued in the fourth quarter of 2009, the proceeds of which were used to invest in the $1 billion of projects currently under construction which will add to cash flow in future years. Also linked to growth was $6.7 million incurred for development-related activities (compared to $3.0 million for 5½ months in 2009). One-time expenses notably included a $5.5 million fee paid in Q4 to prepay the $40 million Thorold subordinated debt (on which the interest rate was approximately 12½%) to reduce future interest costs. One-time expenses recognized also included write-offs of a $3.4 million deferred development expense in Q4 and a $1.1 million receivable from AbitibiBowater, both of which were non-cash items in 2010 but affect cumulative distributable cash. On the plus side, $12.9 million was contributed by the Thorold facility from its nine months of operations (nil in 2009) and $2.4 million was contributed by Jardin d'Éole ($0.8 million in 2009).Full Year 2010 ResultsGross profit in 2010 was $68.1 million higher than in 2009, mostly due to contributions from 9 months of operations at Thorold LP which owns the Thorold facility and from a full year at Jardin LP which owns the Jardin d'Éole wind farm. The $12.2 million increase in total plant operating costs is largely attributable to additional costs at Thorold LP and Jardin LP.Management and administration costs were $7.8 million higher than 2009 as 2010 included costs associated with management of the Thorold and Jardin d'Éole facilities, costs related to the current high level of development activities for 12 months (vs. about 5½ months in 2009), and a number of one-time costs connected with corporatization, adoption of International Financial Reporting Standards and launch of a new website.Investment income at $12.6 million was higher than last year mainly due to receipt of a one-time fee and dividend indirectly related to the prepayment of the Panda senior loan; these payments more than offset the subsequent loss of interest income.Interest income was up slightly from 2009. Interest expense and bank charges were higher by $40 million largely due to recognition of Jardin LP and Thorold LP loan interest (which was mostly capitalized in 2009 when the facilities were under construction), the $5.5 million Thorold subordinated debt prepayment fee, interest paid on the convertible debentures issued in October 2009, and $1.3 million of amortization related to the fair value adjustment to Jardin LP's and Thorold LP's debt.As a result of its sale, Mont Miller's operating results for 2010 and 2009 have been removed from the applicable lines in the Consolidated Statements of Income and Deficit and appear on the line "income (loss) from discontinued operations." The reported 2010 income from discontinued operations of $4.7 million includes an accounting gain of $5.7 million on the sale of Miller LP.During the year, Northland recorded the following non-cash expenses: (i) a $53.8 million loss on the change in fair value of Northland's interest rate swaps on its project-level non-recourse debt due to falling interest rates, (ii) $3.4 million of previously deferred development costs associated with several wind projects not awarded PPAs in the most recent Hydro-Québec request for proposals, and (iii) a $0.5 million foreign exchange loss on U.S. and euro foreign exchange contracts. Positive adjustments included a $1.1 million foreign exchange gain related to the Panda senior loan which consisted of a $0.9 million realized gain on the settlement of the outstanding foreign exchange contracts and a $0.2 million unrealized non-cash gain. Contract amortization increased during the year, due to the Thorold facility becoming operational in April 2010 and a full year of amortization of contracts acquired in the NPI merger in July 2009.The factors described above, current taxes of $1.6 million and the reversal of $34.1 million of future income tax liabilities resulted in a net loss from continuing operations of $3.2 million. Combined with income from the discontinued operation, the net income for 2010 was $1.4 million.Distributable cash as determined by Northland at $63.8 million was $6.7 million lower than the 2009 level for reasons previously described.The Fund ended the 2010 year with $111.5 million of cash and no short-term borrowings under its credit facility.Fourth Quarter ResultsConsolidated sales for the quarter were $90.2 million, and income from operations was $28.1 million. The results included three months of operating results from the Thorold facility (none in 2009) and from the Jardin d'Éole wind farm (about six weeks in 2009). Management and administration costs were up $0.8 million in the quarter, largely due to costs associated with Thorold and Jardin d'Éole and the same development-related and one-time factors cited above. Northland's investment in Panda generated investment income of $0.6 million this quarter, lower by $1.4 million compared to the same period last year, due to the prepayment of the senior loan in the second quarter of 2010.As previously mentioned, Mont Miller's operating results for 2010 and 2009 have been removed from the applicable lines in the Consolidated Statements of Income and Deficit and appear on the line "income (loss) from discontinued operations."Interest expense and bank fees increased by $14.2 million this quarter due to the recognition of interest costs for the Jardin LP and Thorold LP construction and term loans, which had been capitalized during construction, the one-time Thorold subordinated loan prepayment fee of $5.5 million and amortization of the fair value adjustments to Jardin LP's and Thorold LP's debt.Non-cash adjustments during the quarter included the $3.4 million write-off of deferred development expenses for Quebec wind projects, $28.7 million in gains relating to interest rate swaps and a $2.1 million exchange loss on Northland's U.S. and euro foreign exchange contracts. Contract amortization expense increased during the quarter as a result of the Thorold facility becoming operational.The above factors, combined with a $1.5 million provision for current taxes and a future tax reduction of $9.2 million, resulted in an $8.7 million increase in fourth quarter income from continuing operations compared with 2009. With the addition of $5.8 million from the Mont Miller facility (income from discontinued operations) and a $5.7 million accounting gain on the sale of Miller LP, net income for the fourth quarter of 2010 was $40.8 million, up $14.7 million from the previous year.During the quarter, cash and cash equivalents related to continuing operations increased by $5.5 million. Construction costs at the Mont Louis wind farm, and the Spy Hill and North Battleford facilities were funded by cash reserves, proceeds from the Miller LP sale and $106 million in non- recourse construction financing for Mont Louis of which $50.5 million is included in cash reserves at December 31, 2010.Standardized distributable cash for the quarter was down largely due to the capital expenditures for the Mont Louis and Saskatchewan projects. Distributable cash at $12 million was $8.5 million lower than last year. The factors that affected this quarter were similar to those that affected the year: the $5.5 million Thorold subordinated loan prepayment fee, a $3.4 million write-off of deferred development costs and $2 million in preferred share dividends paid. Also, investment income was down by $1.4 million due to repayment of the Panda loan earlier in the year.Annual audited financial statements and Management, Discussion & Analysis will be filed at and posted on the Fund's website at management is committed to maintaining a dividend of $1.08 per year, payable monthly on its Shares. This payout level is anticipated to exceed free cash flow until the second half of 2013 when the last of the three projects now under construction will be operational. Meanwhile, Northland's cash flow will benefit from about $1.5 billion in tax deduction pools available to defer the payment of any material amount of cash taxes until near the end of the decade.Northland's Development PipelineNorthland owns a development portfolio of power projects at various stages of maturity. Currently this pipeline includes a total potential generating capacity of roughly 2,500 MW, of which 447 MW is under construction and 240 MW is in projects that have executed PPAs. The balance of Northland's pipeline includes potential development prospects being pursued in response to specific procurement announcements, or meeting anticipated needs for new power in various jurisdictions or from innovative generation technologies.Projects under ConstructionSpy Hill ProjectIn September 2009, NPI executed a PPA with SaskPower for an 86 MW gas-fired peaking plant to be built near Spy Hill, Saskatchewan. The commercial operations date (COD) under the PPA is December 1, 2011. The total cost of the project is budgeted at $141 million. The project is currently on schedule and budget.North Battleford ProjectIn February 2010, Northland executed a PPA with SaskPower for a 260 MW gas fired combined- cycle base load plant to be built near North Battleford, Saskatchewan. Completion under the EPC contract is scheduled for June 2013 at a budgeted cost of $700 million. The project is currently well within schedule and budget.Mont Louis Wind ProjectThe Mont Louis wind project is a 100 MW wind farm located on public land secured under leases near the town of Mont Louis in the Gaspésie region of Quebec. The total project cost is expected to be $180 million or net $150 million after reimbursement of substation and collection system costs by Hydro-Québec. Investissements Québec has committed to lend $15 million for the project.COD is scheduled for the third quarter of 2011, subject to the completion of the project's interconnection facilities by Hydro-Québec. The project is currently on schedule and budget.Loblaw Rooftop SolarThe Loblaw Rooftop Solar pilot projects are a group of four installations in various Ontario municipalities, including Ottawa (494 kilowatts (kW)), Whitby (433 kW), Ajax (226 kW), and Toronto (10 kW). Each project is located on the roof of a Loblaws store. Installation work began in October 2010. All projects are expected to be online in the second quarter of 2011.Projects in Advanced DevelopmentNorthland considers projects that have executed PPAs to be in the advanced stage of development.216 MW of Ontario Feed-In Tariff ProjectsNorthland continues to actively develop its renewable green energy projects awarded long-term PPAs under the Ontario FIT program. In total, Northland's FIT PPAs provide for 216 MW of capacity, including 130 MW from 13 ground-mounted solar projects located across the province, 26 MW from four run-of-river hydro projects on the Kabinakagami River in partnership with Constance Lake First Nation and a 60 MW Manitoulin Island wind farm. Total investment by Northland on FIT projects could reach $1 billion over the next four years.On February 10, 2011, Northland and UCCM announced they had formed a 50-50 partnership for the Manitoulin wind farm project. Northland has been developing the project for several years. It expects all environmental permitting and financing to be completed and construction to begin in 2011.Frampton Wind ProjectOn December 21, 2010, Northland announced it had been awarded a 20-year PPA to build and operate a 24 MW wind farm in Frampton, Quebec near the south shore of the St. Lawrence. The contract was awarded by Hydro-Québec under the province's request for community and First Nations wind proposals. Northland has partnered with the municipality of Frampton, which has a 33% interest in the project. The wind turbines will be supplied by Enercon from a facility it is constructing in Quebec. Commercial operation for the Frampton wind farm is expected in 2015.ABOUT NORTHLAND POWER INC.Northland owns or has an economic interest in 9 projects totalling over 1,050 MW (net 815 MW). Northland's assets comprise facilities that produce electricity from "clean" natural gas and "green" renewable sources such as wind and biomass for sale under long-term PPAs with creditworthy customers to assure revenue stability. Three wholly-owned natural-gas-fired plants are located in Ontario: the 120 MW Iroquois Falls facility, the 110 MW Kingston facility and the 265 MW Thorold facility. Through its 19% equity interest in Panda Energy Corporation, Northland has an interest in the 230 MW Panda-Brandywine combined-cycle power plant located outside Washington, D.C. For the natural-gas-fired plants, long-term contracts, as appropriate, assure the supply and price of natural gas, which is Northland's largest cost. Northland owns the 127.5 MW Jardin d'Éole wind farm near Matane, Quebec, which began commercial operations in late November 2009 and sells electricity under a long- term PPA to Hydro-Québec. Northland owns two wind farms located in Germany with 21.5 MW of installed capacity with all electricity generated being supplied to local power utilities under the terms of German renewable energy legislation. Northland manages two natural-gas- and biomass-fired generation facilities in Kirkland Lake and Cochrane, Ontario on behalf of third- party owners in exchange for management, gas purchase and performance incentive fees. Northland also owns a small chipping facility located on Vancouver Island and an engineering services business. Northland owns the 86 MW Spy Hill project, the 260 MW North Battleford project, the 100 MW Mont Louis wind farm and 4 roof top solar installations, all of which are under construction. In addition, Northland owns 216 MW of wind, solar and run-of-river hydro projects awarded PPAs under the Ontario Power Authority's FIT program and was recently awarded a 20-year PPA by Hydro-Québec to build and operate a 24 MW wind farm near Frampton, Quebec. Northland also has an extensive portfolio of projects under development. Once Northland's Saskatchewan projects are operational, Northland's cash flows will be diversified over five geographically separate regions and regulatory regimes.Northland's common shares, preferred shares and two series of convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.DB and NPI.DB.A, respectively, are qualified investments for RRSPs, RRIFs and DPSPs under the Canadian Income Tax Act. Northland has in place a dividend re-investment plan that allows common shareholders who are residents of Canada to automatically have their monthly cash dividends reinvested in additional common shares. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.FORWARD LOOKING STATEMENTSCertain statements in this News Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Fund's and its subsidiaries' current expectations. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, priorities, ongoingobjectives, strategies and outlook of Northland and its subsidiaries. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include those set out in the management's discussion and analysis section of Northland's 2009 annual report and in Northland's Annual Information Form dated March 31, 2010, certain of which are beyond the Manager's control. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or what benefits, including the amount of dividends, Northland and its Shareholders will derive therefrom.The forward-looking statements contained in this press release are based on assumptions that were considered reasonable as of the date hereof for the purpose of providing readers with Northland's expectations for the coming year. The forward- looking statements may not be appropriate for other purposes. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.NORTHLAND POWER INCOME FUNDConsolidated Balance Sheets(unaudited, stated in thousands)ASSETSDec. 31, 2010Dec. 31, 2009CurrentCash and cash equivalents$111,546$116,066Cash reserves72,1514,163Accounts and other receivables78,33971,044Inventories7,9334,873Prepaid expenses5,3542,525Current portion of Panda senior loan-2,401Current assets of discontinued operations-2,007Total current assets275,323203,079Deferred development costs10,4308,018Investment in Panda Energy Corporation5,8006,050Panda senior loan-61,879Goodwill122,467115,840Contracts240,729260,032Property, plant and equipment1,244,115962,015Long-term assets of discontinued operations-77,612$1,898,864$1,694,525LIABILITIES AND UNITHOLDERS' EQUITYCurrentAccounts payable and accrued liabilities$91,120$55,019Current portion of long-term debt42,94341,157Distribution payable to Unitholders6,7536,423Current liabilities of discontinued operations-2,669Total current liabilities140,816105,268Long-term debt697,429561,552Other long-term liabilities2,0511,525Asset retirement obligation3,4173,191Derivative financial instruments91,49937,019Non-controlling interests-22,008Convertible debentures75,463121,021Future income tax liability71,459100,287Long-term liabilities of discontinued operations-37,0561,082,134988,927Trust Units806,775761,217Preferred shares issued by subsidiary145,946-Exchangeable units236,491198,821Replacement rights46,88344,716Accumulated other comprehensive income381460Deficit(419,746)(299,616)Total Unitholders' equity816,730705,598$1,898,864$1,694,525NORTHLAND POWER INCOME FUNDConsolidated Statements of Income and Deficit(unaudited, stated in thousands except per unit amounts)3 Months Ended Dec. 3112 Months Ended Dec. 312010200920102009Sales Electricity$81,667$47,662$267,852$158,851 Steam2,8692,0299,2637,922 Natural gas3,6516,15021,33623,115 Other1,9861,6895,7193,482Total sales90,17357,530304,170193,370Cost of sales34,32022,567126,08383,398Gross profit55,85334,963178,087109,972Expenses Plant operating costs8,9834,92428,02615,801 Amortization of property, plant and equipment12,7117,19246,58724,853 Writedown of property, plant and equipment---1,512 Write-off of accounts receivable--1,111- Management and administration costs - operations4,1724,06813,3779,311 Management and administration costs - development2,3411,6316,6882,956 Accretion expense61242403428,26817,83996,02954,467Investment income5571,94012,5939,810Income from operations28,14219,06494,65165,315 Foreign exchange (gain)/loss2,087809(535)10,036 Amortization of contracts5,0743,89519,30314,900 Change in fair value of interest rate swaps(28,744)(9,298)53,761(9,157) Writedown in PEC investment to fair value--250- Write-off of deferred development costs3,383-3,383- Convertible debenture issuance costs-3,935-3,935 Interest income(166)(28)(387)(153) Interest expense and bank fees19,2785,10154,51314,509Income (loss) before income taxes27,23014,650(35,637)31,245Provision for (recovery of) income taxes Current1,4555511,57785 Future(9,165)(12,144)(34,133)(4,316)(7,710)(11,593)(32,556)(4,231)Minority interest in earnings of a subsidiary--151-Income (loss) for the period, continuing operations$34,940$26,243(3,232)35,476Income (loss) for the period, discontinued operations5,840(155)4,650(212)Net income40,78026,0881,41835,264Deficit, beginning of period(426,977)(299,160)(299,616)(250,565)Cash distributions declared to Unitholders(20,137)(19,270)(78,312)(70,400)Preferred share dividends, including taxes(1,982)-(3,399)-Distributions in kind(11,430)(7,274)(39,837)(13,915)Deficit, end of period$(419,746)$(299,616)$(419,746)$(299,616)Average number of units outstanding - basic100,81794,14497,72575,694Average number of units outstanding - diluted106,281104,95597,72575,952Net income (loss) per trust unit, continuing operations - basic$0.33$0.28$(0.07)$0.47Net income (loss) per trust unit, continuing operations - diluted$0.32$0.27$(0.07)$0.47Net income (loss) per trust unit, discontinued operations - basic$0.06$-$0.05$-Net income (loss) per trust unit, discontinued operations - diluted$0.06$-$0.05$-NORTHLAND POWER INCOME FUNDConsolidated Statement of Comprehensive Income(unaudited, stated in thousands)3 Months Ended Dec. 3112 Months Ended Dec. 312010200920102009Net income for the period$40,780$26,088$1,418$35,264Other comprehensive income(loss): Change in translation of net investment in foreign operations(370)(1,604)(1,338)(2,069) Change in fair value of hedged foreign currency forward contracts6377701,6111,682Future income tax effect of above(172)(130)(352)(239)Total other comprehensive income (loss)95(964)(79)(626)Total comprehensive income$40,87525,124$1,339$34,638NORTHLAND POWER INCOME FUNDConsolidated Statements of Cash Flows(unaudited, stated in thousands except per unit amounts)3 Months Ended Dec. 3112 Months Ended Dec. 312010200920102009Operating activitiesNet income for the period$40,780$26,088$1,418$35,264Items not involving cash: (Income) loss from discontinued operations(5,840)155(4,650)212 Amortization of property, plant and equipment12,7117,19246,58724,853 Amortization of contracts5,0743,89519,30314,900 Change in fair value of interest rate swaps(28,744)(9,298)53,761(9,157) Write-off of deferred development costs3,383-3,383- Foreign exchange2,08780940110,036 Accretion expense612424034 Convertible debenture issuance costs-3,935-3,935 Other long term liabilities172130563(1,584) Future income taxes(9,165)(12,144)(34,133)(4,316) Minority interest in earnings of subsidiary--151- Other671(587)(395)(732) Distributions from discontinued operations1,2588051,4813,876 Cash provided by (used in) discontinued operations218(184)1,1481,18022,66620,82089,25878,501Net change in non-cash working capital balances related to operations(6,325)(4,372)391(13,917)Cash provided by operating activities16,34116,44889,64964,584Investing activitiesCash reserves utilization (funding)12,9143,635(67,988)61,827Loan to Thorold LP---(3,145)Purchase of non-controlling interests in Jardin LP--(21,500)-Deferred development costs(4,592)(2,933)(14,642)(4,083)Net change in working capital related to investing activities(9,784)(45,658)24,292(45,165)Receipts of principal on Panda senior loan-81865,6493,205Net proceeds from sale of Miller LP43,044-43,044-Acquisition of Northland Power Inc, including cash acquired---5,014Purchase of property, plant and equipment(118,657)(34,530)(321,040)(142,803)Cash used in investing activities(77,075)(78,668)(292,185)(125,150)Financing activitiesPublic issuance receipts-161,392-161,392Repayment of Kingston LP term loans--(10,556)(9,082)Bank credit facility-(39,900)--Jardin LP financing (repayment), net(10,419)22,000(9,751)22,000Mont Louis financing106,000-106,000-Spy Hill LP financing25,300-47,300-Preferred share issuance by subsidiary, net--144,843-Thorold LP (repayment) financing, net(32,493)31,8242,78673,547Repayment of NP Holdings Inc. loan, net---(34,658)Public issuance costs-(7,570)-(7,720)Preferred share dividends(1,968)-(3,349)-Distributions to Unitholders(19,978)(18,667)(77,982)(72,083)Cash used in discontinued operations-(638)(948)(1,275)Cash provided by financing activities66,442148,441198,343132,121Effect of exchange rate differences on cash and cash equivalents(33)(50)(127)(216)Net change in cash and cash equivalents5,67586,171(4,320)71,339Cash and cash equivalents, beginning of the period106,08929,073116,06644,632Cash and cash equivalents, beginning of the period, discontinued operations7671,607785880Cash and cash equivalents, end of period, continuing operations$111,546$116,066$111,546$116,066Cash and cash equivalents, end of period, discontinued operations-785-785PER UNITDistributions declared to Unitholders$0.2700$0.2700$1.0800$1.0800NORTHLAND POWER INCOME FUNDDISTRIBUTIONS TO UNITHOLDERS AND DISTRIBUTABLE CASH(stated in thousands except per unit amounts)3 Months ended Dec. 3112 Months ended Dec. 31(unaudited, stated in thousands except per unit amounts)2010200920102009Cash provided by operating activities$16,341$16,448$89,649$64,584Capital expenditures(118,657)(34,530) (321,040)(142,803) Standardized distributable cash$(102,316)$(18,082)$(231,391)$(78,219)Northland adjustments:Net change in non-cash working capital balances related to operations6,1324,76257513,310Expansionary capital expenditures118,53433,736320,309141,728Scheduled receipts of principal on Panda senior loan-8181,2593,205PEC retructuring fee----Scheduled repayment of Miller LP term loan-(638)(948)(1,275)Scheduled repayment of Jardin LP debt(1,029)-(4,161)-Scheduled repayment of Kingston LP term loans--(10,556)(9,082)Scheduled repayment of Thorold LP term loans(3,292)-(3,292)-Write-off of deferred development costs(3,383)-(3,383)-Funds set aside for quarterly scheduled debt repayment-319--Perferred share dividends(1,968)-(3,349)-Kingston LP cash reserve drawdown(funding)(427)(347)(937)943Thorold LP cash reserve funding(222)-(222)-Funds set aside for future maintenance(22)(22)(88)(88)Distributable cash$12,007$20,546$63,816$70,522Cash Distributions paid to Unitholders$19,978$18,667$77,982$72,083Standardized distributable cash payout ratio(20%)(103%)(34%)(92%)Distributable cash payout ratio166%91%122%102%Cumulative - since inceptionStandardized distributable cash$152,355$383,746Distributable cash$697,745$633,929Cash distributions paid to Unitholders$651,387$573,405Standardized distributable cash payout ratio428%149%Distributable cash payout ratio93%90%Average number of trust units - basic (thousands of units) (1)74,21870,27772,29064,832Average number of trust units - fully diluted (thousands of units) (2)79,19980,69281,82169,895Per trust unit ($/unit)Standardized distributable cash - basic$(1.3786)$(0.2573)$(3.2009)$(1.2065)Standardized distributable cash - fully diluted$(1.2919)$(0.2573)$(3.2009)$(1.2065)Distributable cash - basic$0.1618$0.2924$0.8828$1.0878Distributable cash - fully diluted$0.1516$0.2743$0.8481$1.0100(1) The number of Units and the related per unit numbers are based solely on Trust Units of the Fund and do not include any Class A Exchangeable Units or Replacement Rights as they are not entitled to any cash distributions until January 2012. (2) Average number of Units diluted is the sum of the weighted average number of Units in the basic calculation plus the number of Units that would be issued assuming conversion of the convertible unsecured subordinated debentures. NORTHLAND POWER INCOME FUNDSupplemental Facility InformationIroquois Falls Facility3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)201,052201,410729,835721,592Steam (000 lb.)267,701271,031925,745941,913Fuel Consumption (000 GJs)1,8501,8316,7486,630SalesElectricity23,59022,32778,05972,647Steam2,2072,0297,7647,146Natural gas8641,6036,7073,945Emission allowances and credits--1708026,66125,95992,70083,818Cost of salesGas consumed9,7588,72837,24832,434Gas re-sold8641,5956,6914,02610,62210,32343,93936,460Gross profit16,03915,63648,76147,358Plant operating costs2,3502,1707,5547,410Kingston Facility3 months ended Dec. 3112 months ended Dec 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)226,629183,182808,261661,877Steam (000 lb.)---89,334Fuel consumption (000 GJs)1,8591,5386,7105,757SalesElectricity24,34521,12290,88779,051Steam---776Natural gas2,7874,54714,62919,17027,13225,669105,51698,997Cost of salesGas consumed11,5579,25143,76135,937Gas re-sold1,8542,4879,4039,95713,41111,73853,16445,894Gross profit13,72113,93152,35253,103Plant operating costs1,4751,6216,4776,224NORTHLAND POWER INCOME FUNDSupplemental Facility InformationThorold Facility3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)206,870-582,441-Steam (000 lb.)248,543-699,437-Fuel Consumption (000 GJs)1,725-4,845-SalesElectricity25,958-75,030-Steam662-1,499-26,620-76,529-Cost of salesGas consumed9,551-27,321-Gross profit17,069-49,208-Plant operating costs2,818-7,953-Mont Miller Facility3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)37,25034,846128,108143,858SalesElectricity2,4342,2468,3219,2012,4342,2468,3219,201Gross profit2,4342,2468,3219,201Plant operating costs5675382,1351,993NORTHLAND POWER INCOME FUNDSupplemental Facility InformationJardin d'Éole Facility3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)99,02740,672301,66240,672SalesElectricity6,6992,72420,3802,724Gross profit6,6992,72420,3802,724Plant operating costs1,6683463,996346German Facilities3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars except as indicated)2010200920102009Energy VolumeElectricity (MWh)8,1009,57226,78229,879SalesElectricity1,0751,4883,4964,429Gross profit1,0751,4883,4964,429Plant operating costs3984631,1261,206NORTHLAND POWER INCOME FUNDSupplemental Facility InformationManagement, Development and Other Services3 months ended Dec. 3112 months ended Dec. 31(in thousands of dollars)2010200920102009Sales, other1,9861,6895,5493,402Cost of sales, other7365061,6591,044Gross profit1,2501,1833,8902,358Management and administration : -Operations4,1724,06813,3779,311 -Development2,3411,6316,6882,956Total management and administration6,5135,69920,06512,267Panda Energy Corporation ("PEC"):Dividends557683,266404Interest income-1,8729,3277,8285571,94012,5938,232Thorold LP interest and fees---1,230Jardin LP interest and fees---348Total investment income5571,94012,5939,810FOR FURTHER INFORMATION PLEASE CONTACT: Barb BoklaNorthland Power Inc.Manager, Investor Relations(647) 288-1438ORBoris BalanNorthland Power Inc.Director of Communications(647) 288-1210(416) 962-6266 (FAX)