Algonquin Power & Utilities Corp. – Consolidated Financial Statements Algonquin Power & Utilities Corp. Consolidated Statements of Operations ( thousands of Canadian dollars, except per share amounts)  2012 2011 Revenue: Regulated electricity sales and distribution $ 108,457 $ 77,368  Regulated gas sales and distributions 75,718  - Regulated water reclamation and distribution 46,423 44,989 Non-regulated energy sales 121,150 128,311 Waste disposal fees 14,288 16,406 Other revenue 3,851 3,643 369,887 270,717 Expenses Operating 130,333 84,018 Regulated electricity purchased  68,209 46,508 Regulated gas purchased  37,461  - Non-regulated fuel for generation 14,589 24,628 Depreciation of property, plant and equipment 50,382 37,988 Amortization of intangible assets 4,151 6,433 Administrative expenses 19,608 17,534 Write down of long-lived assets   - 15,166 Gain on foreign exchange (561) (652) 324,172 231,623 Operating income from continuing operations 45,715 39,094 Interest expense 35,941 30,437 Interest, dividend income and other income  (7,239) (5,659) Acquisition-related costs 7,709 2,965 Loss/(gain) on derivative financial instruments (note 24(b)) (233) 5,844 36,178 33,587 9,537 5,507 Income tax expense (recovery) (note 17) Current 738 300 Deferred (14,304) (22,847) (13,566) (22,547) Earnings from continuing operations 23,103 28,054 Loss from discontinued operations net of tax (note 18) (1,157) (752) Net earnings 21,946 27,302 Net earnings attributable to non-controlling interests 7,414 3,921 $ 14,532 $ 23,381 $ 0.10 $ 0.21 (0.01) (0.01) 0.09 0.20 0.10 0.21 (0.01) (0.01) Diluted net earnings per share (note 20) $ 0.09 $ 0.20 Basic net loss per share from discontinued operations (note 20) Basic net earnings per share (note 20) Diluted net earnings per share from continuing operations (note 20) Diluted net loss per share from discontinued operations (note 20) Earnings from continuing operations before income taxes Basic net earnings per share from continuing operations (note 20) Net earnings attributable to shareholders of Algonquin Power & Utilities Corp. See accompanying notes to consolidated financial statements 74 2012 Annual Report