A financial summary and reconciliation of Adjusted Earnings to earnings attributable to equity owners is provided below:
For the Three Months For the Year Ended December 31 Ended December 31----------------------------------------------------------------------------($ Millions except per share data) 2012 2011 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------Adjusted Earnings (1) 141 109 517 471Adjustments for Rate Regulated Activities (2) (5) 37 9 45Acquisition Transaction Costs - - - (50)Dividends on Equity Preferred Shares 8 10 35 30----------------------------------------------------------------------------Earnings Attributable to Equity Owners 144 156 561 496--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings Per Share 1.06 1.14 4.12 3.65--------------------------------------------------------------------------------------------------------------------------------------------------------Revenues 855 827 3,139 2,999--------------------------------------------------------------------------------------------------------------------------------------------------------Funds Generated By Operations (3) 416 414 1,483 1,319--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Adjusted Earnings are earnings attributable to equity owners after adjusting for the timing of revenues and expenses associated with rate regulated activities and dividends on equity preferred shares of Canadian Utilities. Adjusted Earnings also exclude one-time gains and losses and items that are not in the normal course of business or day- to-day operations. Adjusted Earnings present earnings on the same basis as was used prior to adopting International Financial Reporting Standards (IFRS) - that basis being the U.S. accounting principles for rate regulated entities - and they are a key measure used to assess segment performance, to reflect the economics of rate regulation and to facilitate comparability of Canadian Utilities' earnings with other Canadian rate regulated companies.(2) Refer to Note 4 to the consolidated financial statements for descriptions of the adjustments for rate regulated activities and the timing of their recovery from or refund to customers.(3) This measure is cash flow from operations before changes in non-cash working capital. It does not have standardized meaning under IFRS and may not be comparable to similar measures used by other companies.
The $140 million annual increase in revenues ($28 million in the fourth quarter) was due primarily to increased rate base in the utilities and the acquisition of ATCO Gas Australia in the third quarter of 2011. These increases in revenues were partially offset by lower flow through natural gas sales in ATCO Energy Solution's natural gas liquids extraction operations.
Funds Generated by Operations increased $164 million for the year ($2 million in the fourth quarter) primarily for the same reasons earnings increased, as well as higher contributions by utility customers required to connect customers to utility infrastructure.
Canadian Utilities' consolidated financial statements and management's discussion and analysis for the three months and year ended December 31, 2012, will be available on the Canadian Utilities website (www.canadianutilities.com), via SEDAR (www.sedar.com) or can be requested from the Corporation.
Canadian Utilities Limited, an ATCO company, with more than 7,100 employees and assets of approximately $13 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions).
More information can be found at www.canadianutilities.com.
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Corporation's expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
Contacts:
Canadian Utilities Limited
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.canadianutilities.com
