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earnings or loss on this basis will enhance an investor’s understanding of the operating performance of its businesses. It is not intended to be representative of net earnings or loss determined in accordance with GAAP. 

The following table is derived from and should be read in conjunction with the audited Consolidated Statement of Operations. This supplementary disclosure is intended to more fully explain disclosures related to adjusted net earnings and provides additional information related to the operating performance of APUC. Investors are cautioned that this measure should not be construed as an alternative to consolidated net earnings in accordance with GAAP. 

The following table shows the reconciliation of net earnings to adjusted net earnings exclusive of these items: 

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For the year ended December 31, 2012, adjusted net earnings totalled $21.1 million as compared to adjusted net earnings of $38.3 million, a decrease of $17.2 million as compared to the same period in 2011. The decrease in adjusted net earnings for the year ended December 31, 2012 is primarily due to higher depreciation and amortization expense, higher interest expense, higher administration costs and decreased income tax recovery amounts, partially offset by higher income from operations, and interest and dividends as compared to the same period in 2011. 

For the three months ended December 31, 2012, adjusted net earnings totalled $5.4 million as compared to adjusted net earnings of $3.6 million, an increase of $1.8 million as compared to the same period in 2011. The increase in adjusted net earnings for the three months ended December 31, 2012 is primarily due to increased earnings from operations, and increased income tax recovery amounts, partially offset by higher depreciation and amortization expense, higher administration costs, and higher interest expense as compared to the same period in 2011. 

## Reconciliation of adjusted funds from operations to cash flows from operating activities 

Adjusted funds from operations is a non-GAAP metric used by investors to compare cash flows from operating activities without the effects of certain volatile items that generally have no current economic impact or items such as acquisition expenses and are viewed as not directly related to a company’s operating performance. Cash flows from operating activities of APUC can be impacted positively or negatively by changes in working capital balances, acquisition and litigation expense. 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 funds from operations to assess its performance without the effects of changes in working capital balances, acquisition and litigation expense as these are not reflective of the long-term performance of the underlying businesses of APUC. APUC believes that analysis and presentation of funds from operations on this basis will enhance an investor’s understanding of the operating performance of its businesses. It is not intended to be representative of cash flows from operating activities as determined in accordance with GAAP. 

The following table is derived from and should be read in conjunction with the audited Consolidated Statement of Operations and Statement of Cash Flows. This supplementary disclosure is intended to more fully explain disclosures related to adjusted funds from operations and provides additional information related to the operating performance of APUC. Investors are cautioned that this measure should not be construed as an alternative to funds from operations in accordance with GAAP. 

The following table shows the reconciliation of funds from operations to adjusted funds from operations exclusive of these items: 

