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* Interest expense is net of AFUDC Allowance for equity funds. See note 1(i) of notes to the financial statements. 

For the year ended December 31, 2012, Adjusted EBITDA totalled $106.2 million as compared to $103.7 million, an increase of $2.5 million or 2% as compared to the same period in 2011. For the quarter ended December 31, 2012, Adjusted EBITDA totalled $33.4 million as compared to $24.3 million, an increase of $9.1 million or 37% as compared to the same period in 2011. 

The major factors impacting Adjusted EBITDA are set out below. A more detailed analysis of these factors is presented within the business unit analysis. 

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## Reconciliation of adjusted net earnings to net earnings 

Adjusted net earnings is a non-GAAP metric used by many investors to compare net earnings from operations without the effects of certain volatile primarily non-cash items that generally have no current economic impact or items such as acquisition expenses or litigation expenses and are viewed as not directly related to a company’s operating performance. Net earnings of APUC can be impacted positively or negatively by gains and losses on derivative financial instruments, including foreign exchange forward contracts, interest rate swaps and energy forward purchase contracts as well as to movements in foreign exchange rates on foreign currency denominated debt and working capital balances. Adjusted weighted average shares outstanding represents weighted average shares outstanding adjusted to remove the dilution effect related to shares issued in advance of funding requirements. APUC uses adjusted net earnings to assess its performance without the effects of gains or losses on foreign exchange, foreign exchange forward contracts, interest rate swaps, acquisition costs, litigation expenses and write down of intangibles and property, plant and equipment as these are not reflective of the performance of the underlying business of APUC. APUC believes that analysis and presentation of net 

