Algonquin Power Income Fund Announces First Quarter 2008 Financial Results

OAKVILLE, ON, May. 08 /PRNewswire/ --

OAKVILLE, ON, May 8 /PRNewswire-FirstCall/ - Algonquin Power Income Fund (the "Fund" or "Algonquin Power") today announced financial results for the first quarter ended March 31, 2008.

For the first quarter of 2008, revenue was $48.0 million, as compared to $47.6 million in first quarter of 2007. The increase in revenue as compared to the first quarter of 2007 was primarily due to a combination of higher energy production and increased weighted average energy rates generated in the Renewable Energy division, a combination of changes in production and average energy rates in the Thermal Energy division, and rate increases combined with organic growth at existing facilities in the Utility division. Algonquin reported lower revenue of $3.7 million from its operations in the United States ("U.S.") as a result of the stronger Canadian dollar.

Net earnings in the first quarter of 2008 were $(1.6) million as compared to $6.9 million in the first quarter of 2007. The decrease in net earnings resulted primarily from additional interest expense due to increased average borrowings, losses on financial instruments resulting from changes in interest and foreign exchange rates, lower earnings on portfolio investments, foreign exchange losses and an increased income tax expense booked in the quarter.

Cash available for distribution in the first quarter of 2008 was $15.9 million or $0.21 per trust unit compared to $15.1 million or $0.20 per trust unit in the first quarter of 2007. During the quarter ended March 31, 2008 cash provided by operating activities totalled $14.7 million or $0.20 per trust unit as compared to cash provided by operating activities of $10.0 million or $0.14 per trust unit during the same period in 2007. The change in cash provided by operating activities in the quarter ended March 31, 2008 is primarily due to increased cash generated by operations and greater cash generated from working capital as compared to the same period in 2007. Cash distributions in the first quarter of 2008 were $0.23 per trust unit, unchanged from the first quarter of 2007.

Performance Summary for the first quarter of 2008: - Revenue of $48.0 million in Q1 2008 as compared to $47.6 million in Q1 2007. - Net earnings from continuing operations of $(1.6) million or $(0.02) per trust unit in Q1 2008 as compared to net earnings from continuing operations of $6.9 million or $0.09 per trust unit in Q1 2007. - Cash available for distribution of $15.9 million or $0.21 per trust unit in Q1 2008 as compared to $15.0 million or $0.20 per trust unit in Q1 2007. Distributions for the first quarter of both 2008 and 2007 were $0.23 per trust unit.

"At the beginning of the year, to more effectively position itself to compete in its chosen business sectors Algonquin Power re-aligned its operations into two major business units consisting of Power Generation & Development, and Utility Services", commented Dave Kerr, a senior manager with the Fund. "Algonquin's performance in the newly formed Power Generation & Development business unit exceeded management's expectations during the first quarter of 2008, while the Utility Services business unit fell slightly below expectations due to reduced service demand as a result of the water and waste water treatment service areas experiencing cool, wet weather during the quarter."

Kerr continued, "The re-aligned business units allow Algonquin to manage according to the respective management disciplines and better reflect Algonquin's business strategy, planning and performance measurement. Algonquin continues to focus on the performance of its portfolio of renewable, thermal and utility assets, while maximizing growth and development opportunities within each business unit."

To view a detailed report of first quarter 2008 results visit www.algonquinpower.com .

Algonquin Power Income Fund will hold an earnings conference call on Friday, May 9, 2008, hosted by Executive Directors, David Kerr and Chris Jarratt. The call is scheduled to begin at 10:00 a.m. eastern time.

Conference call details are as follows: Date: Friday, May 9, 2008 Start Time: 10:00 a.m. eastern Phone Number: Toll free within North America: 1-800-732-0232 or local 416-644-3414. Conference ID#: 21267649

For those unable to attend the live call, a digital recording will be available for replay two hours after the call by dialing 1-877-289-8525 or 416-640-1917 access code 21267649# from May 9, 2008 until May 16, 2008.

About Algonquin Power

Algonquin Power is an open-ended investment trust that owns and has interests in a diverse portfolio of clean, renewable power generation and sustainable infrastructure assets across North America, including 42 renewable energy facilities, 12 thermal energy facilities, and 17 water distribution and waste-water facilities. Algonquin Power was established in 1997 to provide stable earnings through a diversified portfolio of renewable energy assets. Algonquin Power's units and convertible debentures are traded on the Toronto Stock Exchange under the symbols APF.UN, APF.DB & APF.DB.A and units are included in the S&P/TSX Composite Index.