Boralex: Revenue Up in First Quarter 2009

MONTREAL, May 11 /PRNewswire-FirstCall/ - Boralex Inc. ("Boralex" or the
"Corporation") increased its energy sales revenue by 5% to $57.2 million in
the first quarter 2009 compared to the same period in 2008.

(in millions of dollars, except per share data)
-------------------------------------------------------------------------
Three months ended
-----------------------------
March 31, March 31,
2009 2008
-----------------------------
Revenue from energy sales 57.2 54.5
EBITDA 21.0 23.9
Net earnings 7.2 9.2
Net earnings per share (basic) $ 0.19 $ 0.25
Cash flows from operations 15.3 20.7
-------------------------------------------------------------------------

The revenue increase stems mainly from the favourable impact of the
depreciation of the Canadian dollar in relation to the U.S. dollar and the
euro, combined with the positive impact of the higher average price of the
electricity sold by Boralex. The increase occurred despite an 11% decline in
total power generation, stemming mainly from less favourable climate
conditions compared to the corresponding quarter of 2008 in the wind and
hydroelectric segments and targeted shutdowns by wood-residue thermal power
plants outside rush periods. Earnings before interest, taxes, depreciation and
amortization (EBITDA) amounted to $21.0 million in the first quarter 2009
compared to $23.9 million a year earlier. The 12% decrease is mainly due to
higher development costs related to Boralex's growth strategy, higher
maintenance costs and a lower contribution from the Boralex Power Income Fund.
Boralex closed the first quarter 2009 with net earnings of $7.2 million, or
$0.19 per share (basic and diluted), compared to $9.2 million or $0.25 per
share (basic) for the same period in 2008.
In the first quarter, unfavourable climate conditions resulted in lower power
generation at the wind power sites, slightly reducing revenue from this
segment by $1.0 million to $9.1 million and EBITDA by $1.3 million, closing at
$7.2 million. For the hydroelectric power stations, hydrology was not as good
as in the first quarter of 2008, but was still higher than historical
averages. This, combined with lower power prices on the New York State open
electricity market, resulted in revenue of $2.8 million for the three months
ended March 31, 2009, down $1.0 million from the same period in 2008. The
wood-residue thermal power segment recorded growth of 12.7% in revenue and
6.3% in EBITDA, amounting respectively to $38.2 million and $11.8 million for
the first quarter of 2009. This growth is due to an increase of 10.5% (in $US)
of the average electricity selling price in this segment, due to our forward
sales contract strategy. Lastly, in the first quarter of 2009, revenue from
energy sales in the natural gas-fired thermal power station was up 7.5%, and
EBITDA 15.4%, due mainly to the sale of excess CO2 quota.
Boralex is proud of its cash balance of $62 million as at March 31, 2009.
Given the current market situation, Boralex can count on this significant
level of cash to take advantage of business opportunities as they arise and
continue to grow.
"Although it will be hard to equal the record operating results of 2008 in
2009, we are expecting good overall performance in most of our segments", said
Mr. Patrick Lemaire, President and Chief Executive Officer of Boralex. In
fact, Boralex's financial health and operational reliability ensure a
promising future for the Corporation's development projects. "Despite the
current recession, Boralex continues to prepare for the longer-term outlook.
We are also watching for the business opportunities that will certainly
present themselves in the current economic context. We will also continue to
explore the potential of new technologies for producing renewable energy, and
will pay close attention to the responsible management of our operating costs,
business risk and capital structure", said Mr. Lemaire. Boralex still plans to
start up Phase 1 of the 40 MW Thames River wind farm in Ontario in the third
quarter 2009.

About Boralex

Boralex is a major private electricity producer whose core business is the
development and operation of power stations that run on renewable energy.
Employing over 300 people, the Corporation owns and operates 22 power stations
with a total installed capacity of 365 MW in Canada, in the Northeastern
United States and in France. In addition, the Corporation has more than 300 MW
of power projects under development. Boralex is distinguished by its
diversified expertise and in-depth experience in three power generation
segments - wind, hydroelectric and thermal. Boralex shares are listed on the
Toronto Stock Exchange under the ticker symbol BLX. www.boralex.com
Boralex also holds a 23% interest in Boralex Power Income Fund, which has 10
power stations with a total installed capacity of 190 MW in Quebec and the
United States. These sites are managed by Boralex.

Certain statements in this release, including statements regarding future
results and performance, are forward-looking statements based on current
expectations. The accuracy of such statements is subject to a number of risks,
uncertainties and assumptions that may cause actual results to differ
materially from those projected, including, but not limited to, the effect of
general economic conditions, decreased demand for Boralex's products,
increases in raw material costs, fluctuations in currency exchange rates,
fluctuations in sales prices and adverse changes in general market and
industry conditions. The summarized financial statements included in this
press release also contain certain financial measurements that are not
recognized as Generally Accepted Accounting Principles of Canada (GAAP).
To assess the operating performance of its assets and reporting segments, the
Corporation uses Earnings before interest, taxes, depreciation and
amortization (EBITDA) and Cash flows from operations as performance
measurements. These measures are not defined under GAAP of Canada and do not
have a standardized meaning prescribed by GAAP. Therefore, they may not be
comparable to smilar measures presented by other enterprises. EBITDA is
defined in the summarized financial statements included with this press
release. Cash flows from operations corresponds to cash flows from operating
activities before changes in non-cash working capital items as disclosed in
the consolidated statements of cash flows attached in this press release.

Notice to shareholders

The interim financial statements as at March 31, 2009 and 2008 have not been
reviewed by our auditors PricewaterhouseCoopers LLP. The financial statements
are the responsibility of the management of Boralex Inc. They have been
reviewed and approved by the Board of Directors on the recommendation of its
Audit Committee.
The following financial informations were extracted from the interim
consolidated financial statements of Boralex Inc. The complete interim
financial statements were prepared conformingly with the Canadian generally
accepted accounting principles (GAAP). They are available on the Boralex's
website (www.boralex.com) and filed with SEDAR.

Consolidated Balance Sheets

AS AT AS AT
MARCH DECEMBER
31, 31,
(in thousands of dollars) (unaudited) 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 62,391 69,195
Accounts receivable 43,116 48,812
Future income taxes 391 238
Inventories 12,735 8,833
Prepaid expenses 3,360 2,106
-------------------------------------------------------------------------
121,993 129,184
Investment 69,779 69,348
Property, plant and equipment 331,072 330,443
Power sales contracts 25,085 26,402
Other assets 82,496 67,578
-------------------------------------------------------------------------
630,425 622,955
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES
CURRENT LIABILITIES
Bank loans and advances 3,689 -
Accounts payable and accrued liabilities 19,208 22,115
Income taxes 2,973 1,716
Other liabilities 5,317 5,718
Current portion of long-term debt 29,351 29,410
-------------------------------------------------------------------------
60,538 58,959
Long-term debt 147,451 158,035
Future income taxes 42,250 39,437
Fair value of derivative financial instruments 5,889 3,000
Non-controlling interests 580 804
-------------------------------------------------------------------------
256,708 260,235
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 222,694 222,694
Contributed surplus 3,326 3,069
Retained earnings 142,673 135,461
Accumulated other comprehensive income 5,024 1,496
-------------------------------------------------------------------------
373,717 362,720
-------------------------------------------------------------------------
630,425 622,955
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consolidated Statements of Earnings

FOR THE QUARTERS
(in thousands of dollars, except amounts ENDED MARCH 31,
per share and number of shares) (unaudited) 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

Revenue from energy sales 57,198 54,455
Renewable energy tax credits 3,488 3,122
Operating costs 39,653 33,953
-------------------------------------------------------------------------
21,033 23,624
Share in earnings of the Fund 2,303 3,248
Management revenues from the Fund 1,380 1,341
Other revenues 1,504 163
-------------------------------------------------------------------------
26,220 28,376
-------------------------------------------------------------------------

OTHER EXPENSES
Management and operation of the Fund 1,129 938
Administrative expenses 4,139 3,547
-------------------------------------------------------------------------
5,268 4,485
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

OPERATING EARNINGS BEFORE AMORTIZATION 20,952 23,891

Amortization 6,465 5,810
Foreign exchange gain (43) (474)
Financial instruments (115) 319
Financing costs 3,418 3,466
-------------------------------------------------------------------------
9,725 9,121
-------------------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 11,227 14,770

Income taxes 3,956 5,444
-------------------------------------------------------------------------
7,271 9,326
Non-controlling interests (59) (94)
-------------------------------------------------------------------------
NET EARNINGS 7,212 9,232

Net earnings per Class A share (basic) $ 0.19 $ 0.25
Net earnings per Class A share (diluted) $ 0.19 $ 0.24
Weighted average number of Class A shares
outstanding (basic) 37,740,921 37,566,967
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consolidated Statements of Retained Earnings

FOR THE QUARTERS
ENDED MARCH 31,
(in thousands of dollars) (unaudited) 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

Balance - beginning of period, as
previously reported 135,783 115,669
Application of Section 3064 (322) (336)
-------------------------------------------------------------------------
Balance - beginning of period 135,461 115,333
Net earnings for the period 7,212 9,232
-------------------------------------------------------------------------
Balance - end of period 142,673 124,565
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consolidated Statements of Comprehensive Income

FOR THE QUARTERS
ENDED MARCH 31,
(in thousands of dollars) (unaudited) 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

Net earnings for the period 7,212 9,232
-------------------------------------------------------------------------

Other comprehensive income
TRANSLATION ADJUSTMENTS
Unrealized foreign exchange gains on translation
of financial statements of self-sustaining
foreign operations 4,751 9,053
Foreign exchange gains related to the reduction
of net investment in self-sustaining foreign
operations (65) -
Share of cumulative translation adjustments
of the Fund 539 591
Taxes (127) (78)
CASH FLOW HEDGES
Change in fair value of financial instruments 6,726 (463)
Hedging items realized and recognized in net
earnings (6,677) (121)
Hedging items realized and recognized in
balance sheet (1,097) -
Taxes (42) 187
-------------------------------------------------------------------------
4,008 9,169
-------------------------------------------------------------------------
Comprehensive income for the period 11,220 18,401
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consolidated Statements of Cash Flows

FOR THE QUARTERS
ENDED MARCH 31,
(in thousands of dollars) (unaudited) 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

OPERATING ACTIVITIES
Net earnings 7,212 9,232
Distributions received from the Fund 2,409 3,098
Adjustments for non-cash items
Financial instruments (115) 319
Share in earnings of the Fund (2,303) (3,248)
Amortization 6,465 5,810
Amortization of deferred financing
costs and monetization program expenses 772 708
Renewable energy tax credits (867) (1,093)
Future income taxes 2,143 5,442
Other (395) 479
-------------------------------------------------------------------------
15,321 20,747
Change in non-cash working capital items (1,040) (5,213)
-------------------------------------------------------------------------
14,281 15,534
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Additions to property, plant and equipment (6,763) (4,327)
Change in debt servicing reserves (21) (29)
Development projects (5,885) (14,227)
Other (3,324) (478)
-------------------------------------------------------------------------
(15,993) (19,061)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Increase in bank loans and advances 3,689 -
Payments on long-term debt (6,691) (9,000)
Net proceeds from share issuance - 1,466
-------------------------------------------------------------------------
(3,002) (7,534)
-------------------------------------------------------------------------
TRANSLATION ADJUSTMENT ON CASH AND CASH
EQUIVALENTS (2,090) 2,361
-------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (6,804) (8,700)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 69,195 79,195
-------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS - END OF PERIOD 62,391 70,495

SUPPLEMENTAL INFORMATION
-------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS PAID FOR:
Interest 2,116 2,442
Income taxes 269 303
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Segmented information

The Corporation's power stations are grouped under four distinct segments:
wind power, hydroelectric power, wood-residue thermal power and natural gas
thermal power, and are engaged mainly in the production of energy. The
classification of these segments is based on the cost structures relating to
each of the four types of power stations.
The Corporation analyzes the performance of its operating segments based
on their earnings before interest, taxes, depreciation and amortization
("EBITDA"). EBITDA is not a measure of performance under Canadian GAAP.
However, management uses this measure to assess the operating performance of
its segments. Earnings for each segment are presented on the same basis as
those of the Corporation.
The following table reconciles EBITDA with net earnings:

FOR THE QUARTERS
ENDED MARCH 31,
2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

Net earnings 7,212 9,232
Non-controlling interests 59 94
Income taxes 3,956 5,444
Financing costs 3,418 3,466
Financial instruments (115) 319
Foreign exchange gain (43) (474)
Amortization 6,465 5,810
-------------------------------------------------------------------------
EBITDA 20,952 23,891
-------------------------------------------------------------------------

INFORMATION BY SEGMENT FOR THE QUARTERS
ENDED MARCH 31,
2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------

POWER GENERATION (MWh)
Wind power stations 60,761 75,822
Hydroelectric power stations 35,666 43,380
Wood-residue thermal power stations 296,688 327,908
Natural gas thermal power station 22,613 22,493
-------------------------------------------------------------------------
415,728 469,603
-------------------------------------------------------------------------
-------------------------------------------------------------------------

REVENUE FROM ENERGY SALES
Wind power stations 9,083 10,065
Hydroelectric power stations 2,760 3,790
Wood-residue thermal power stations 38,181 33,877
Natural gas thermal power station 7,174 6,723
-------------------------------------------------------------------------
57,198 54,455
-------------------------------------------------------------------------
-------------------------------------------------------------------------

EBITDA
Wind power stations 7,215 8,504
Hydroelectric power stations 1,709 3,034
Wood-residue thermal power stations 11,803 11,071
Natural gas thermal power station 1,511 1,321
Corporate and eliminations (1,286) (39)
-------------------------------------------------------------------------
20,952 23,891
-------------------------------------------------------------------------
-------------------------------------------------------------------------

ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
Wind power stations 5,141 2,686
Hydroelectric power stations - 6
Wood-residue thermal power stations 1,459 1,200
Natural gas thermal power station 22 -
Corporate and eliminations 141 435
-------------------------------------------------------------------------
6,763 4,327
-------------------------------------------------------------------------
-------------------------------------------------------------------------

AS AT AS AT
MARCH DECEMBER
31, 31,
2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(RESTATED)

ASSETS
Wind power stations 236,075 242,944
Hydroelectric power stations 24,776 23,019
Wood-residue thermal power stations 192,098 183,881
Natural gas thermal power station 17,920 17,151
Corporate and eliminations 159,556 155,960
-------------------------------------------------------------------------
630,425 622,955
-------------------------------------------------------------------------
-------------------------------------------------------------------------

SOURCE Boralex Inc.

Ms. Sophie Paquet, Communications Advisor, Boralex Power Inc., (514) 985-1353,
sophie.paquet@boralex.com