Macquarie Power Income Fund Announces Third Quarter Results
TORONTO, November 8 2005 – The Macquarie Power Income Fund (TSX: MPT.UN - the
“Fund”) announced today results for the third quarter ended September 30, 2005.
The Fund generated revenue of $20.7 million for the third quarter ended September 30, 2005,
exceeding revenue in the corresponding period in 2004 by $2.0 million. Approximately $1.1
million of the increase is as a result of an adjustment by the Ontario Electricity Finance
Corporation (“OEFC”) to the 2005 electricity rate. The balance of the improvement in revenue
is from OEFC adjustments related to years prior to 2005 and improved operational factors and
reduced curtailment in the quarter when compared to the period in 2004.
The Fund’s earnings before interest, taxes, depreciation, amortization and unrealized gains
and losses (“EBITDA”) for the quarter ended September 30, 2005 was $6.0 million compared
to EBITDA of $4.4 million reported in the quarter ended September 30, 2004. The increase in
EBITDA was due to revenue factors identified above offset by planned expenditures in 2005
for Cardinal’s major maintenance in 2006.
During the third quarter ended September 30, 2005, the Fund generated distributable cash of
$6.3 million ($0.297 per unit) and declared distributions of $5.0 million ($0.238 per unit).
As at September 30, 2005, the Fund had cash and cash equivalents totalling $14.1 million, of
which $8.3 million was allocated to its general, major maintenance and capital expenditure
reserve accounts. The balance of this amount is maintained as free cash on hand and is
available to finance the seasonality of operations.
Mr Bob Rollinson, President and Chief Executive Officer, Macquarie Power Income Fund, said
“The Cardinal plant has completed another strong quarter, underpinning the Fund’s
performance. Our financial position remains robust as we move into the seasonally strong
fourth and first quarters.”
The Cardinal Power Purchase Agreement with the OEFC allows for lower rates of electricity
for the months from April to September. Despite these lower rates and preparation for major
maintenance activity during this period the Fund has been able to demonstrate excellent
financial results with a payout ratio of 85% for the 2005 year to date.
On October 18, 2005, the Fund completed a 45% indirect equity investment in leading Ontario
long-term care provider, Leisureworld Inc. and associated entities (Leisureworld). The
investment, which diversifies the Fund’s sources of stable cash available for distribution to
unitholders, was partly financed by an offering of 5,630,000 subscription receipts to a group of
underwriters on a bought deal basis which closed on September 30, 2005. In addition to the
issue of subscription receipts the fund also issued 3,349,390 Class B exchangeable units on
October 18, 2005 to certain vendors.
The Fund has reflected the issuance and closing of the subscription receipt offering in the
balance sheet of the Fund as at September 30, 2005. Financial results for the third quarter do
not include results from Leisureworld, which will be included in the Fund’s results for the fourth
quarter ending December 31, 2005.
“The integration of the Leisureworld business following financial close is progressing well and
is in accordance with our transition plan. We look forward to benefiting from the contribution
that Leisureworld will make to the Fund, providing a more diverse asset base and a further
source of long term cash flows,” said Mr Rollinson.
“The Fund expects that its investment in Leisureworld will be accretive to unitholders, providing
an increase to the Fund’s cash available for distribution,” he said.
Conference Call and Webcast
The Fund will hold a conference call to discuss the results on Wednesday, November 9, 2005
at 8:30 AM EST, at which time the Fund’s Manager will present the results for the third quarter
2005. The conference call will also be available via webcast through the Fund’s website at
www.macquarie.com/mpt and by telephone at 416-644-3431. A replay of the conference call
will be available until November 19, 2005 following the conference call and can be accessed
by dialling 416-640-1917, pass code 21162078#.
About Macquarie Power Income Fund
Macquarie Power Income Fund is an unincorporated limited purpose trust which owns a 156
MW gas-fired cogeneration power station located in Cardinal, Ontario and a 45% indirect
interest in Ontario long-term care provider Leisureworld. The Fund’s units are listed on the
Toronto Stock Exchange under the symbol MPT.UN. The Fund is managed by Macquarie
Power Management Ltd., a wholly-owned subsidiary of Macquarie Bank Limited and a
member of the Macquarie group.
More information on Macquarie Power Income Fund can be found at the Fund’s website,
For further information, please contact:
Chief Financial Officer
Macquarie Power Management Ltd.
Tel: (416) 607-5198
Tel: (212) 231-1710