A more detailed discussion of these factors is presented within the business unit analysis. 

Adjusted EBITDA in the three months ended December 31, 2012 totalled $33.4 million as compared to $24.3 million during the same period in 2011, an increase of $9.1 million or 37%. 

The increase in Adjusted EBITDA was primarily due to increased revenues from EnergyNorth Gas Utility, Granite State Electric Utility, Midwest Gas Utilities, and the U.S. Wind Project acquisitions, and increased demand at the Liberty Utilities (West)’s electric distribution utility. These items were partially offset by lower results from operations primarily from increased energy costs for APCO’s energy sales group, lower revenues from APCo’s EFW facility due to the expiry of the Region of Peel contract, and reduced wind resources at APCo’s St Leon facility. A more detailed analysis of these factors is presented within the reconciliation of Adjusted EBITDA to net earnings set out below (see Non-GAAP Performance Measures). 

For the three months ended December 31, 2012, net income attributable to Shareholders totalled $6.4 million as compared to net loss attributable to Shareholders of $8.5 million during the same period in 2011, an increase of $14.9 million. Net income per share totalled $0.04 for the three months ended December 31, 2012, as compared to net loss per share of $0.07 during the same period in 2011. 

The increase in net earnings attributable to Shareholders for the quarter ended December 31, 2012 was due to $10.0 million increased earnings from operating facilities, $15.2 million in decreased write-downs of long lived assets, $2.0 million due to a stronger U.S. dollar, $1.1 million in increased interest, dividend and other income, $2.0 million in increased gains from derivative instruments, $0.7 million in reduced losses from discontinued operations and $0.5 million in increased recoveries of income tax expense (tax explanations are discussed in APUC: Corporate and Other Expenses) as compared to the same period in 2011. These items were partially offset by $6.5 million increased depreciation and amortization expense, $0.5 million related to increased administration charges, $3.7 million in higher interest expense, $0.1 million in increased acquisition costs, and $5.8 million in increased allocations of earnings to non-controlling interests as compared to the same period in 2011. 

During the three months ended December 31, 2012, cash provided by operating activities totalled $16.1 million or $0.09 per share as compared to cash provided by operating activities of $1.4 million, or $0.01 per share during the same period in 2011. During the three months ended December 31, 2012, adjusted funds from operations totalled $26.9 million or $0.16 per share as compared to adjusted funds from operations of $12.7 million, or $0.10 per share during the same period in 2011. The change in adjusted funds from operations in the three months ended December 31, 2012, is primarily due to decreased earnings from operations, partially offset by increased interest, dividend and other income as compared to the same period in 2011. 

Cash per share provided by operating activities and per share adjusted funds from operations are non-GAAP measures. Per share cash provided by operating activities and per share adjusted funds from operations are not substitute measures of performance for earnings per share. Amounts represented by per share cash provided by operating activities and per share adjusted funds from operations do not represent amounts available for distribution to shareholders and should be considered in light of various charges and claims against APUC. 

## Outlook 

Overall APUC expects operational results for power generation in the first quarter of 2013 to reflect long-term average resource conditions for hydroelectric and wind power generation. 

APUC expects continuing modest customer growth throughout its regulated utilities service territories in 2013 and that utility operations will meet APUC’s expectations for the first quarter of 2013. 

As a result of several acquisitions concluded by APUC over the past 9 months, the Company’s results in the first quarter of 2013 is expected to show growth compared to the first quarter of 2012. APUC’s results will reflect several acquisitions which have now closed but were not part of APUC’s operations in the first quarter of 2012. These acquisitions include the Shady Oaks Wind Facility and the Gamesa Wind Facilities, the Pine Bluff Water Utility, the Midwest Gas Utilities, EnergyNorth Gas Utility and Granite State Electric Utility. 

