Nov. 6, 2009 (PR Newswire) -- ATLANTA, Nov. 6 /PRNewswire-FirstCall/ --
-- Income from continuing operations of $55 million compared to income from
continuing operations of $1.607 billion for the third quarter of 2008
-- Adjusted EBITDA from continuing operations of $311 million compared to
adjusted EBITDA from continuing operations of $278 million for the third
quarter of 2008
-- Reduced 2009 adjusted EBITDA guidance from $873 million to $860 million
-- Increased 2010 adjusted EBITDA guidance from $570 million to $617
million
Mirant Corporation (NYSE: MIR) today reported income from continuing operations for the third quarter of 2009 of $55 million compared to income from continuing operations of $1.607 billion for the same period in 2008. Results for 2009 include unrealized losses, principally on hedges, of $174 million compared to unrealized gains, again principally on hedges, of $1.395 billion for 2008. Per share results from continuing operations for the third quarter of 2009 were $0.38 per share, compared to $8.69 per share from continuing operations for the third quarter of 2008.
Net Income to Adjusted Income from Continuing Operations and
Adjusted EBITDA
------------------ ------------------
Quarter Ending Quarter Ending
September 30, 2009 September 30, 2008
(in millions except per share) ------------------ ------------------
Per Per
Share(1) Share(1)
------- -------
Net income $55 $0.38 $1,607 $8.69
Unrealized (gains) losses 174 1.19 (1,395) (7.54)
Other 9 0.06 4 0.02
------- ------- ------- -------
Adjusted income from continuing
operations $238 $1.63 $216 $1.17
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Provision (benefit) for income taxes 3 (5)
Interest expense, net 33 32
Depreciation and amortization 37 35
------- -------
Adjusted EBITDA $311 $278
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(1) Per share amounts for 2009 are based on diluted weighted average
shares outstanding of 146 million. Per share amounts for 2008 are
based on diluted weighted average shares outstanding of 185 million.
Mirant reported adjusted income from continuing operations of $238 million for the third quarter of 2009, or $1.63 per diluted share, compared to adjusted income from continuing operations of $216 million for the same period of 2008, or $1.17 per diluted share. Adjusted income from continuing operations excludes unrealized gains and losses and other non-recurring items. The quarter over quarter increase resulted principally from higher realized gross margins.
Adjusted EBITDA from continuing operations for the third quarter of 2009 was $311 million, compared to adjusted EBITDA from continuing operations of $278 million for the third quarter of 2008. The increase in adjusted EBITDA resulted principally from higher realized value of hedges and higher realized results from proprietary trading activities, partially offset by lower energy gross margins from generation.
Net cash provided by operating activities of continuing operations for the third quarter of 2009 was $290 million compared to net cash provided by operating activities of continuing operations of $632 million for the same period in 2008. The decrease was primarily the result of significant cash collateral returned in the third quarter of 2008.
Nine Months 2009 versus Nine Months 2008
Mirant reported income from continuing operations of $598 million for the first nine months of 2009, compared to income from continuing operations of $621 million for the same period in 2008. Results for 2009 include unrealized gains, principally on hedges, of $66 million compared to unrealized gains, again principally on hedges, of $218 million for 2008. Per share results from continuing operations for the first nine months of 2009 were $4.12 per share, compared to $2.86 per share from continuing operations for the same period in 2008.
Net Income to Adjusted Income from Continuing Operations and
Adjusted EBITDA
------------------ ------------------
Year to Date Year to Date
(in millions except per share) September 30, 2009 September 30, 2008
------------------ ------------------
Per Per
Share(1) Share(1)
------- -------
Net income $598 $4.12 $672 $3.10
Income from discontinued operations - - 51 0.24
------ ------- ------ -------
Income from continuing operations 598 4.12 621 2.86
Unrealized gains (66) (0.45) (218) (1.00)
Bankruptcy charges and legal
contingencies (62) (0.43) 4 0.02
Other 14 0.10 33 0.15
------ ------- ------ -------
Adjusted income from continuing
operations $484 $3.34 $440 $2.03
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Provision for income taxes 11 5
Interest expense, net 102 79
Depreciation and amortization 109 108
------ ------
Adjusted EBITDA $706 $632
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(1) Per share amounts for 2009 are based on diluted weighted average
shares outstanding of 145 million. Per share amounts for 2008 are
based on diluted weighted average shares outstanding of 217 million.
Mirant reported adjusted income from continuing operations of $484 million for the first nine months of 2009, or $3.34 per diluted share, compared to adjusted income from continuing operations of $440 million for the same period in 2008, or $2.03 per diluted share. Adjusted income from continuing operations excludes unrealized gains, the MC Asset Recovery settlement with Southern Company and other non-recurring items. The period over period increase resulted principally from higher realized gross margins partially offset by higher net interest expense.
Adjusted EBITDA from continuing operations for the first nine months of 2009 was $706 million, compared to adjusted EBITDA from continuing operations of $632 million for the same period in 2008. The period over period increase resulted principally from higher realized value of hedges and higher realized results from proprietary trading activities, partially offset by lower energy gross margins from generation.
Net cash provided by operating activities of continuing operations during the first nine months of 2009 was $721 million compared to net cash provided by operating activities of continuing operations of $587 million in the same period of 2008. The increase was primarily the result of working capital changes and higher realized gross margins.
As of September 30, 2009, Mirant had cash and cash equivalents of $2.029 billion, of which $574 million was restricted at Mirant North America and its subsidiaries and not available for distribution to Mirant. The company expects Mirant North America will distribute approximately $116 million to its parent, Mirant Americas Generation, in November 2009. Although the company expects Mirant North America to remain in compliance with its financial covenants, it is likely it will be restricted from making distributions in future periods, beyond permitted interest payable by its parent, primarily because of the significant capital expenditure program underway to comply with the Maryland Healthy Air Act. Upon completion of its capital expenditure program, and after such expenditures no longer affect the free cash flow calculation, Mirant North America is expected to be able again to make distributions.
