The Financial Highlights below include the results from Comax France S.A.S. ("COMAX") to December 2, 2016, the date the segment was sold, and Maxim Power (USA), Inc. ("MUSA") to December 31, 2016, both of which are recorded as discontinued operations in MAXIM's financial statements. Refer to MAXIM's audited consolidated financial statements and MD&A for further details.
FINANCIAL HIGHLIGHTS
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Three Months Ended Twelve Months Ended
December 31 December 31
($ in thousands except per share
amounts) 2016 2015 2016 2015
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Revenue $ 21,149 $ 32,792 $ 94,558 $ 123,045
Adjusted EBITDA (1) (2,878) 8,219 2,232 19,501
Net loss attributable to
shareholders (17,411) (65,155) (53,800) (77,418)
Per share - basic and diluted $ (0.32) $ (1.20) $ (0.99) $ (1.43)
FFO (1) (3,367) 4,444 (6,507) 10,263
Per share - basic and diluted $ (0.06) $ 0.08 $ (0.12) $ 0.19
Net Generation Capacity (MW) (2) 603 778 603 778
Average Alberta market power
price ($ per MWh) $ 22.03 $ 21.19 $ 18.28 $ 33.34
Average Milner realized power
price ($ per MWh) $ 34.58 $ 22.52 $ 30.23 $ 64.33
Average Northeast US realized
power price (US$ per MWh) $ 47.22 $ 41.83 $ 41.44 $ 61.85
(1) Select financial information was derived from the unaudited condensed
consolidated interim financial statements and is prepared in accordance
with GAAP, except adjusted earnings before interest, taxes, depreciation
and amortization ("EBITDA") and adjusted net loss. Adjusted EBITDA is
provided to assist management and investors in determining the
Corporation's approximate operating cash flows before interest, income
taxes, and depreciation and amortization and certain other income and
expenses. Funds from operating activities before changes in working
capital ("FFO") is provided to assist management and investors in
determining the Corporation's cash flows generated from operations before
the cash impact of working capital fluctuations. Adjusted EBITDA and FFO
do not have any standardized meaning prescribed by GAAP and may not be
comparable to similar measures presented by other companies.
(2) Generation capacity is manufacturer's nameplate capacity net of
minority ownership interests of third parties and uncontacted capacity on
contracted generating facilities.
OPERATING RESULTS
During the fourth quarter of 2016, revenue decreased primarily as a result of the sale of COMAX closing on December 2, 2016. Adjusted EBITDA decreased primarily as a result of a prior year sale of SO2 environmental credits in the Canadian segment, which did not recur in 2016, and an increase in costs related to strategic alternatives in 2016 in addition to the lower revenues noted above. FFO decreased primarily from lower revenues and an increase in costs related to strategic alternatives in the current year. Net loss attributable to shareholders was negatively impacted by all of these factors, however was lower in 2016 primarily due to impairments recognized in the Canadian segment in the prior year.
On a year-to-date basis, revenue, adjusted EBITDA and FFO have decreased and net loss attributable to shareholders improved when compared to 2015. The decrease in revenue is primarily due to lower Alberta pool prices, lower realized Northeast U.S. power price and the sale of COMAX as noted above. In addition to these unfavorable revenue items, amounts owing relating to the FERC Settlement Agreement, a prior year sale of SO2 environmental credits and an increase in costs related to strategic alternatives have caused a decrease in adjusted EBITDA and FFO. Net loss attributable to shareholders was lower in 2016 primarily due to impairments recognized in the Canadian segment in the prior year, partially offset by the unfavorable factors noted above.
AGREEMENT TO SELL COMAX
As previously reported on December 2, 2016, the Corporation announced that it had closed the sale of 100% of its ownership interest in COMAX to Vine Luxembourg SARL ("Vine"), an affiliate of Basalt Infrastructure Partners LP, for immediate net sales proceeds of approximately EUR17 million after accounting for debt and transaction costs. The agreement with Vine provides for a contingent payment of up to a further EUR6 million upon certain future events occurring. MAXIM will advise going forward, as applicable, on developments related to receipt of this contingent consideration.
