The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Newalta Reports Strong Third Quarter 2013 Results

Tuesday, November 05, 2013

Newalta Reports Strong Third Quarter 2013 Results

19:00 EST Tuesday, November 05, 2013

CALGARY, ALBERTA--(Marketwired - Nov. 5, 2013) - Newalta Corporation ("Newalta") (TSX:NAL) today reported results for the three and nine months ended September 30, 2013.

FINANCIAL HIGHLIGHTS 1

Three months ended
September 30,
Nine months ended
September 30,
($000s except per share data)
(unaudited)
2013 2012 % Increase
(Decrease)
2013 2012 % Increase
(Decrease)
Revenue 212,112 190,136 12 579,597 527,764 10
Gross profit 59,231 49,007 21 142,443 130,721 9
- % of revenue 28% 26% 8 25% 25% -
Net earnings 13,158 15,236 (14) 32,261 38,681 (17)
- per share ($) - basic 0.24 0.31 (23) 0.59 0.80 (26)
- per share ($) - diluted 0.24 0.31 (23) 0.58 0.78 (26)
Adjusted net earnings(2) 20,417 15,430 32 38,063 32,676 16
- per share ($) - basic(2) 0.37 0.32 16 0.69 0.67 3
Adjusted EBITDA(2) 51,199 42,526 20 117,270 108,846 8
- per share ($)(2) 0.93 0.87 7 2.14 2.24 (4)
Cash from operations 67,319 11,867 467 77,753 49,786 56
- per share ($) 1.22 0.24 408 1.42 1.02 39
Funds from operations(2) 49,339 41,756 18 100,682 94,312 7
- per share ($)(2) 0.90 0.86 5 1.84 1.94 (5)
Maintenance capital expenditures(2) 6,398 11,671 (45) 15,247 22,863 (33)
Growth capital expenditures(2) 37,012 20,660 79 83,675 92,077 (9)
Dividends declared 6,060 4,870 24 17,583 13,494 30
- per share ($)(2) 0.11 0.10 10 0.32 0.28 14
Dividends paid 4,918 4,870 1 12,937 12,512 3
Book value per share, September 30, 12.19 11.62 5 12.19 11.62 5
Weighted average shares outstanding 55,077 48,698 13 54,841 48,666 13
Shares outstanding, September 30,(3) 55,090 48,698 13 55,090 48,698 13
  1. Newalta's Unaudited Condensed Consolidated Financial Statements are attached. References to Generally Accepted Accounting Principles ("GAAP") are synonymous with IFRS and references to Unaudited Condensed Consolidated Financial Statements are synonymous with Financial Statements.
  2. These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-GAAP financial measures are identified and defined later in this document.
  3. Newalta has 55,170,805 shares outstanding as at November 5, 2013.

Management Commentary

"Results in the quarter were strong, driven by returns from our growth capital investments and contributions from all three divisions," said Al Cadotte, President and CEO of Newalta. "We continue to focus on delivering creative solutions for our customers and the recent collaboration with DuPont Canada is one example of how we're moving forward with these initiatives.

"We continue to make excellent progress in the execution of our business plan. The 2013 capital program is fully committed with investments prioritized towards areas that provide the highest returns, more stable cash flows and lowest risk. Our growth investments this year will drive strong performance and attractive returns in 2014 and beyond."

Consolidated Overview

Third quarter revenue was up 12% to $212.1 million and Adjusted EBITDA increased 20% to $51.2 million compared to Q3 2012. Improved results were primarily driven by contributions from growth investments in New Markets and higher event-based business at our Stoney Creek Landfill ("SCL"), further enhanced by a positive impact from commodity prices. Net earnings in the quarter decreased to $13.2 million compared to $15.2 million in the prior year. Excluding higher stock-based compensation expense, net finance charges related to a non-cash loss on embedded derivatives and income tax expense, net earnings would have increased 32% to $20.4 million compared to Q3 2012.

Year to date, revenue increased 10% to $579.6 million compared to prior year. Adjusted EBITDA was $117.3 million, 8% higher than prior year, driven by contributions from growth investments in New Markets and Oilfield.

Operational Overview

Revenue from New Markets in the quarter and year-to-date increased 11% and 21%, respectively, to $68.1 million and $165.0 million compared to prior year. Gross profit in the quarter and year-to-date increased 12% and 13%, respectively, to $25.1 million and $57.5 million compared to 2012. Strong performance in the quarter and year-to-date was primarily driven by returns from growth capital invested, including our two contracts to process mature fine tailings ("MFT").

Revenue from Oilfield in the quarter and year-to-date was $49.0 million and $137.1 million, respectively, up slightly from prior year. Gross profit in the quarter and year-to-date increased 19% and 13%, respectively, to $19.9 million and $52.9 million compared to prior year. Positive results were driven by contributions from growth capital investments and improved commodity prices.

Revenue from Industrial in the quarter and year-to-date increased 17% and 9%, respectively, to $95.1 million and $277.4 million compared to prior year. Gross profit in the quarter increased 46% to $14.2 million compared to prior year. Year-to-date gross profit was $32.1 million, flat to prior year.

Other Highlights

Newalta's Board of Directors declared a third quarter dividend of $0.11 per share ($0.44 per share annualized) paid October 15, 2013 to shareholders of record on September 30, 2013.

Revenue from contracts (fee for service solutions with terms longer than one year and no direct commodity price exposure) generated 13% of consolidated revenue trailing twelve months ("TTM") Q3 2013, compared to 8% in TTM Q3 2012.

Capital expenditures for the three and nine months ended September 30, 2013 were $43.4 million and $98.9 million, respectively, focused primarily on growth capital projects in New Markets and Oilfield.

Our Total Debt to Adjusted EBITDA ratio improved to 2.52 in Q3 2013, from 2.74 in Q2 2013. We anticipate ending the year at or about 2.50.

On October 17, 2013, we announced a development agreement with DuPont Canada to test an innovative water processing technology in the Alberta oil and gas industry. The water processing technology removes solids from water and facilitates a higher level of water re-use for customers at their sites. The collaboration between the companies will combine DuPont's innovative scientific and technical expertise with Newalta's operating capabilities and customer relationships.

O utlook

Adjusted EBITDA in the second half of 2013 is expected to be approximately 20% higher than last year, based on commodity prices and drilling activity remaining at Q3 levels. Growth capital investments made over the past 18 months continue to deliver strong returns. SCL volumes are anticipated to be at the annual permitted capacity by the end of the year, or approximately 132,000 MT in Q4. Ville Ste-Catherine ("VSC") volumes in the fourth quarter are expected to be in line with our historical quarterly average. Performance in New Markets and Oilfield for the second half of 2013 remains in line with management's expectations.

Our 2013 capital budget of $190 million is fully committed. We continue to focus on growing our portfolio of longer term contracts, strengthening our foundation of stable cash flow, and maximizing returns from our existing assets. We have good visibility on our pipeline of organic growth capital projects.

Quarterly Conference Call

Management will hold a conference call on Wednesday, November 6, 2013 at 11:00 a.m. (ET) to discuss Newalta's performance for the third quarter ended September 30, 2013. To participate in the teleconference, please call 416-981-9000, or 1-800-926-9174. To access the simultaneous webcast, please visit www.newalta.com. For those unable to listen to the live call, a taped broadcast will be available at www.newalta.com and, until midnight on Wednesday, November 13, 2013 by dialing 1-800-558-5253 and using pass code 21675657 followed by the pound sign.

The Unaudited Condensed Consolidated Financial Statements and Management's Discussion & Analysis, which contain additional notes and disclosures, are available on our website at www.newalta.com under Investor Relations/Financial Reports.

About Newalta

Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

SELECTED FINANCIAL INFORMATION

Three months ended
September 30,
Nine months ended
September 30,
($000s, except where otherwise noted) (unaudited) 2013 2012 % Increase
(Decrease)
2013 2012 % Increase
(Decrease)
New Markets
Revenue 68,063 61,560 11 165,041 136,317 21
Gross Profit 25,142 22,534 12 57,474 50,684 13
- % of revenue 37% 37% - 35% 37% (5)
Revenue by Business Unit
Heavy Oil 79% 74% 7 72% 69% 4
U.S. 21% 26% (19) 28% 31% (10)
Divisional EBITDA(1) 31,045 25,964 20 70,046 58,554 20
Assets Employed(2) 270,354 219,030 23
Assets Contributing(3) 235,554 207,030 14
Oilfield
Revenue 48,994 47,178 4 137,127 136,581 -
Gross Profit 19,898 16,736 19 52,858 46,711 13
- % of revenue 41% 35% 17 39% 34% 15
Divisional EBITDA(1) 23,008 19,723 17 61,923 55,575 11
Assets Employed(2) 363,207 343,827 6
Assets Contributing(3) 340,407 325,927 4
Industrial
Revenue 95,055 81,398 17 277,429 254,866 9
Gross Profit 14,191 9,737 46 32,111 33,326 (4)
- % of revenue 15% 12% 25 12% 13% (8)
Revenue by Business Unit
Western Industrial 27% 32% (16) 25% 28% (11)
Eastern Industrial 73% 68% 7 75% 72% 4
VSC as a percent of Industrial Division 26% 18% 44 33% 28% 18
Divisional EBITDA(1) 19,646 15,597 26 50,023 51,345 (3)
Assets Employed(2) 426,276 426,079 -
Assets Contributing(3) 414,676 409,279 1
Capital Expenditures
Maintenance capital expenditures 6,398 11,671 (45) 15,247 22,863 (33)
New Markets 1,685 2,099 (20) 2,577 4,531 (43)
Oilfield 1,802 3,302 (45) 5,908 6,825 (13)
Industrial 2,221 4,985 (55) 4,486 8,153 (45)
Growth capital expenditures 37,012 20,660 79 83,675 92,077 (9)
New Markets 17,896 5,775 210 39,217 51,190 (23)
Oilfield 7,931 5,627 41 18,952 14,194 34
Industrial 5,412 3,878 40 11,517 11,587 (1)
  1. "Divisional EBITDA" is a measure of the division's profitability and an indication of the results generated by the division's principal business activities prior to how the assets are amortized. Divisional EBITDA is the sum of gross profit and amortization.
  2. "Assets employed" is provided to assist management and investors in determining the effectiveness of the use of the assets at a divisional level. Assets employed is the sum of capital assets, intangible assets and goodwill allocated to each division.
  3. "Assets contributing" is provided to assist management and investors to understand how our capital spending contributes to our growth. It excludes assets related to growth capital projects not yet operational.

Condensed Consolidated Balance Sheets

(Unaudited - Expressed in thousands of Canadian Dollars)

September 30, 2013 December 31, 2012
Assets
Current assets
Cash - 409
Accounts and other receivables 164,062 150,347
Inventories 51,415 43,123
Prepaid expenses and other 16,638 10,627
232,115 204,506
Non-current assets
Property, plant and equipment 966,544 929,580
Permits and other intangible assets (Note 4) 58,445 58,614
Other long-term assets 25,572 23,443
Goodwill 103,976 102,615
TOTAL ASSETS 1,386,652 1,318,758
Liabilities
Current liabilities
Bank indebtedness 3,676 -
Accounts payable and accrued liabilities 184,636 188,370
Dividends payable (Note 9) 6,060 5,426
194,372 193,796
Non-current liabilities
Senior secured debt (Note 5) 119,500 76,500
Senior unsecured debentures (Note 6) 246,811 246,334
Other liabilities (Note 7) 2,842 4,228
Deferred tax liability 87,721 77,519
Decommissioning liability 63,763 78,941
TOTAL LIABILITIES 715,009 677,318
Shareholders' Equity
Shareholders' capital 406,019 394,048
Contributed surplus 2,881 2,881
Retained earnings 262,243 247,565
Accumulated other comprehensive income (loss) 500 (3,054)
TOTAL SHAREHOLDERS' EQUITY 671,643 641,440
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,386,652 1,318,758

Condensed Consolidated Statements of Operations

(Unaudited - Expressed in thousands of Canadian Dollars)

(Except per share data)

For the three months
ended September 30,
For the nine months
ended September 30,
2013 2012 2013 2012
Revenue 212,112 190,136 579,597 527,764
Cost of sales 152,881 141,129 437,154 397,043
Gross profit 59,231 49,007 142,443 130,721
Selling, general and administrative 32,785 26,574 80,075 71,542
Research and development 229 482 844 1,878
Earnings before finance charges and income taxes 26,217 21,951 61,524 57,301
Finance charges 6,646 7,691 20,249 20,956
Embedded derivative loss (gain) (Note 11) 507 (4,788) 370 (12,838)
Net financing charges expense 7,153 2,903 20,619 8,118
Earnings before income taxes 19,064 19,048 40,905 49,183
Income tax expense 5,906 3,812 8,644 10,502
Net earnings 13,158 15,236 32,261 38,681
Net earnings per share (Note 8) 0.24 0.31 0.59 0.80
Diluted earnings per share (Note 8) 0.24 0.31 0.58 0.78
Supplementary information:
Amortization included within cost of sales 14,468 12,277 39,549 34,753
Amortization included in selling, general and administrative 3,762 3,316 10,765 9,959
Total amortization 18,230 15,593 50,314 44,712

Condensed Consolidated Statements of Comprehensive Income

(Unaudited - Expressed in thousands of Canadian Dollars)

For the three months
ended September 30,
For the nine months
ended September 30,
2013 2012 2013 2012
Net earnings 13,158 15,236 32,261 38,681
Other comprehensive (loss) income:
Unrealized exchange (loss) gain on translating foreign operations (3,153) (3,575) 3,713 (4,018)
Unrealized (loss) gain on available for sale financial assets (Note 11) (127) 32 (159) (95)
Transfer of available for sale financial assets to financing charges - 1,557 - 1,557
Other comprehensive (loss) income (3,280) (1,986) 3,554 (2,556)
Total comprehensive income 9,878 13,250 35,815 36,125

Condensed Consolidated Statement of Changes in Equity

(Unaudited - Expressed in thousands of Canadian Dollars)

Shareholders'
capital
Contributed
surplus
Retained
earnings
Accumulated
other
comprehensive
income (loss)
Total
Balance, December 31, 2011 317,386 2,700 223,679 (1,844) 541,921
Changes in equity for the nine months ended September 30, 2012
Exercise of options 1,510 - - - 1,510
Cancellation of shares (181) 181
Dividends declared - - (13,494) - (13,494)
Other comprehensive loss - - - (2,556) (2,556)
Net earnings for the period - - 38,681 - 38,681
Balance, September 30, 2012 318,715 2,881 248,866 (4,400) 566,062
Changes in equity for the three months ended December 31, 2012
Exercise of options 933 - - - 933
Issuance of shares 74,400 - - - 74,400
Dividends declared - - (5,424) - (5,424)
Other comprehensive recovery - - - 1,346 1,346
Net earnings for the period - - 4,123 - 4,123
Balance, December 31, 2012 394,048 2,881 247,565 (3,054) 641,440
Changes in equity for the nine months ended September 30, 2013
Exercise of options 7,956 - - - 7,956
Shares issued under dividend reinvestment plan 4,015 - - - 4,015
Dividends declared - - (17,583) - (17,583)
Other comprehensive income - - - 3,554 3,554
Net earnings for the period - - 32,261 - 32,261
Balance, September 30, 2013 406,019 2,881 262,243 500 671,643

Condensed Consolidated Statements of Cash Flows

(Unaudited - Expressed in thousands of Canadian Dollars)

For the three months
ended September 30,
For the nine months
ended September 30,
2013 2012 2013 2012
Cash provided by (used for):
Operating Activities
Net earnings 13,158 15,236 32,261 38,681
Adjustments for:
Amortization 18,230 15,593 50,314 44,712
Income tax expense 5,906 3,812 8,644 10,502
Income tax (refund) paid (36) - 121 (43)
Stock-based compensation expense 5,762 4,660 1,117 4,500
Net financing charges 7,153 2,903 20,619 8,118
Finance charges paid (989) (443) (12,937) (11,732)
Other 155 (5) 543 (426)
Funds from Operations 49,339 41,756 100,682 94,312
Decrease (increase) in non-cash working capital (Note 12) 20,059 (28,953) (18,950) (42,655)
Decommissioning costs incurred (2,079) (936) (3,979) (1,871)
Cash from Operating Activities 67,319 11,867 77,753 49,786
Investing Activities
Additions to property, plant and equipment (Note 12) (44,261) (42,543) (113,669) (109,053)
Other 1,748 386 (1,309) 943
Cash used in Investing Activities (42,513) (42,157) (114,978) (108,110)
Financing Activities
Issuance of shares - - 2,361 642
(Decrease) increase in senior secured debt (10,000) 40,025 43,000 78,496
(Decrease) increase in bank indebtedness (9,460) (2,715) 3,676 (6,168)
Dividends paid (4,918) (4,870) (12,937) (12,512)
Cash (used in) from Financing Activities (24,378) 32,440 36,100 60,458
Effect of foreign exchange on cash (428) (873) 716 (857)
Change in cash - 1,277 (409) 1,277
Cash, beginning of period - - 409 -
Cash, end of period - 1,277 - 1,277

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute "forward-looking statements". When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Newalta Corporation and the subsidiaries of Newalta Corporation, or their management, are intended to identify forward-looking statements. In particular, forward-looking statements included or incorporated by reference in this document include statements with respect to:

  • future operating and financial results;
  • anticipated industry activity levels;
  • expected demand for our services;
  • business prospects and strategy;
  • capital expenditure programs and other expenditures;
  • the amount of dividends declared or payable in the future;
  • realization of anticipated benefits of growth capital investments, acquisitions and our technical development initiatives;
  • our projected cost structure; and
  • expectations and implications of changes in legislation.

Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation:

  • general market conditions of the industries we service;
  • strength of the oil and gas industry, including drilling activity;
  • fluctuations in commodity prices for oil and the price we received for our recovered oil;
  • fluctuations in commodity prices for lead including the price differential we pay for lead feedstock and the price we receive for our lead products;
  • fluctuations in base oil prices including the price differential we pay for used oil and the price we receive for our finished lube oil products;
  • fluctuations in interest rates and exchange rates;
  • supply of waste lead acid batteries as feedstock to support direct lead sales;
  • demand for our finished lead products by the battery manufacturing industry;
  • our ability to secure future capital to support and develop our business, including the issuance of additional common shares;
  • the highly regulated nature of the environmental services and waste management business in which we operate;
  • dependence on our senior management team and other operations management personnel with waste industry experience;
  • the competitive environment of our industry in Canada and the U.S.;
  • success of our growth, acquisition and technical development strategies including integration of businesses and processes into our operations and potential liabilities from acquisitions;
  • potential operational and safety risks and hazards and obtaining insurance for such risks and hazards on reasonable financial terms;
  • the seasonal nature of our operations;
  • costs associated with operating our landfills and reliance on third party waste volumes;
  • risk of pending and future legal proceedings;
  • risk to our reputation;
  • our ability to attract and retain skilled employees and maintain positive labour union relationships;
  • open access for new industry entrants and the general unprotected nature of technology used in the waste industry;
  • possible volatility of the price of, and the market for, our common shares, and potential dilution for shareholders in the event of a sale of additional shares;
  • financial covenants in our debt agreements that may restrict our ability to engage in transactions or to obtain additional financing; and
  • such other risks or factors described from time to time in reports we file with securities regulatory authorities.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and are expressly qualified by this cautionary statement. Unless otherwise required by law, we do not intend, or assume any obligation, to update these forward-looking statements.

The information contained on our website does not form part of this press release.

RECONCILIATION OF NON-GAAP MEASURES

This Press Release contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below:

"EBITDA", "EBITDA per share", "Adjusted EBITDA", and "Adjusted EBITDA per share" are measures of our operating profitability. EBITDA provides an indication of the results generated by our principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. In addition, Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. As such, Adjusted EBITDA provides improved continuity with respect to the comparison of our operating results over a period of time. EBITDA and Adjusted EBITDA are derived from the condensed consolidated statements of operations and comprehensive income. EBITDA per share and Adjusted EBITDA per share are derived by dividing EBITDA and Adjusted EBITDA by the basic weighted average number of shares.

They are calculated as follows:

Three months ended
September 30,
Nine months ended
September 30,
($000s) 2013 2012 2013 2012
Net earnings 13,158 15,236 32,261 38,681
Add back (deduct):
Income taxes 5,906 3,812 8,644 10,502
Net finance expense 7,153 2,903 20,619 8,118
Amortization 18,230 15,593 50,314 44,712
EBITDA 44,447 37,544 111,838 102,013
Add back (deduct):
Stock-based compensation expense 6,752 4,982 5,432 6,833
Adjusted EBITDA 51,199 42,526 117,270 108,846
Weighted average number of shares 55,077 48,698 54,841 48,666
EBITDA per share 0.81 0.77 2.04 2.10
Adjusted EBITDA per share 0.93 0.87 2.14 2.24

"Divisional EBITDA" provides an indication of the results generated by the division's principal business activities prior to how the assets are amortized, and before allocation of Selling, general and administrative costs. Divisional EBITDA is the sum of gross profit and amortization for the respective division. Divisional EBITDA is derived from EBITDA as follows:

Three months ended
September 30,
Nine months ended
September 30,
($000s) 2013 2012 2013 2012
Divisional EBITDA
New Markets 31,045 25,964 70,046 58,554
Oilfield 23,008 19,723 61,923 55,575
Industrial 19,646 15,597 50,023 51,345
Subtotal 73,699 61,284 181,992 165,474
Deduct:
Selling, general and administrative(1) 29,023 23,258 69,310 61,583
Research and development 229 482 844 1,878
EBITDA 44,447 37,544 111,838 102,013
  1. Selling, general and administrative excludes amortization of $3,762 and $10,765 for Q3 2013 and 2013 year-to-date, respectively, and $3,316 and $9,959 for Q3 2012 and 2012 year-to-date, respectively.

"Adjusted net earnings" and "Adjusted net earnings per share" are measures of our profitability. Adjusted net earnings provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation recovery or expense and the gain or loss on embedded derivatives. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. The gain on the embedded derivative is a result of the change in the trading price of the debentures and the volatility of the applicable bond market. As such, Adjusted net earnings provides improved continuity with respect to the comparison of our results over a period of time. Adjusted net earnings per share is derived by dividing Adjusted net earnings by the basic weighted average number of shares.

Three months ended
September 30,
Nine months ended
September 30,
($000s) 2013 2012 2013 2012
Net earnings 13,158 15,236 32,261 38,681
Add back (deduct):
Stock-based compensation expense 6,752 4,982 5,432 6,833
Embedded derivative gain 507 (4,788) 370 (12,838)
Adjusted net earnings 20,417 15,430 38,063 32,676
Weighted average number of shares 55,077 48,698 54,841 48,666
Adjusted net earnings per share 0.37 0.32 0.69 0.67

"Book value per share" is used to assist management and investors in evaluating the book value compared to the market value.

Nine months ended
September 30,
($000s) 2013 2012
Total Equity 671,643 566,062
Shares outstanding, September 30, 55,090 48,698
Book value per share 12.19 11.62

"Funds from operations" is used to assist management and investors in analyzing cash flow and leverage. Funds from operations as presented is not intended to represent operating funds from operations or operating profits for the period, nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Funds from operations is derived from the consolidated statements of cash flows and is calculated as follows:

Three months ended
September 30,
Nine months ended
September 30,
($000s) 2013 2012 2013 2012
Cash from operations 67,319 11,867 77,753 49,786
Add back (deduct):
(Decrease) increase in non-cash working capital (20,059) 28,953 18,950 42,655
Decommissioning obligations incurred 2,079 936 3,979 1,871
Funds from operations 49,339 41,756 100,682 94,312
Weighted average number of shares 55,077 48,698 54,841 48,666
Funds from operations per share 0.90 0.86 1.84 1.94

References to EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Divisional EBITDA, Adjusted net earnings, Adjusted net earnings per share, Funds from operations, and Funds from operations per share throughout this document have the meanings set out above. Adjusted SG&A is defined as SG&A adjusted for stock-based compensation and amortization.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Newalta Corporation
Anne M. Plasterer
Executive Director, Investor Relations
(403) 806-7019


Newalta Corporation
Stephanie MacVicar
Director, Investor Relations
(403) 806-7391
www.newalta.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections