Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis granted APUC summary judgment on its counter-claims against Trafalgar. The District Court found that  Trafalgar was in default of the indenture and the loan agreements and that APUC was entitled to proceed to  enforce its rights against its collateral. Trafalgar has filed a notice of appeal of the Memorandum-Decision and  Order. Algonquin filed its brief on October 19, 2012 with a hearing dated anticipated in the first quarter of 2013.  The bankruptcy proceedings are continuing with a Second Circuit Court of Appeal hearing scheduled for  December 12, 2012 to hear the appeal of the District Court’s October 25, 2011 decision holding that Algonquin  does not have a security interest in the monies transferred by Trafalgar before it filed for bankruptcy protection.  With respect to the bankruptcy proceedings, on January 30, 2013, the U.S Second Circuit Court of Appeals held  that APCo did have a security interest in Trafalgar’s engineering malpractice claim and its proceeds. On  February 20, 2013, Trafalgar filed a petition for a rehearing with the U.S, Second Circuit Court of Appeals.  On October 21, 2011 the Québec Court of Appeal ordered a subsidiary of APUC to pay approximately $5.4  million (including interest) to the government of Québec relating to water lease payments that the APUC  subsidiary has been paying to the St. Lawrence Seaway Management Corporation (“Seaway Management”)  under its water lease with Seaway Management in prior years. The water lease with Seaway Management  contains an indemnification clause which management believes mitigates this claim and management intends to  vigorously defend its position. The potential unrecoverable loss, if any, for the related prior periods could be up  to $5.8 million. The parties are attempting to resolve this matter through good faith negotiations.  Liberty Utilities may have facilities located within areas of the United States experiencing growth. These utilities  may have an obligation to service new residential, commercial and industrial customers. While expansion to  serve new customers will likely result in increased future cash flows, it may require significant capital  commitments in the immediate term. Accordingly, Liberty Utilities may be required to solicit additional capital or  obtain additional borrowings to finance these future construction obligations.  The following is a summary of unaudited quarterly financial information for the eight quarter ended December  31, 2012: The quarterly results are impacted by various factors including seasonal fluctuations and acquisitions of facilities  as noted in this MD&A.  2012 Annual Report 65 1$^{st}$ Quarter  2011  2$^{nd}$ Quarter  2011  3$^{rd}$ Quarter  2011  4$^{th}$ Quarter  2011  Revenue $ 70.1 $ 64.9 $ 65.1 $ 70.5 Adjusted EBITDA  26.7  27.9  25.8  24.3  Net earnings / (loss) attributable to shareholders from  continuing operations  4.8 7.0 19.6 (7.7) Net earnings/(loss) attributable to shareholders  5.0  7.3  19.6  (8.5)  Net earnings / (loss) per share from continuing operations  0.05  0.06  0.16  (0.6)  Net earnings/(loss) per share  0.05  0.06  0.16  (0.07)  Adjusted net earnings  5.1  7.9  22.4  3.6  Adjust net earnings per share  0.05  0.07  0.19  0.03  Total Assets  1,175.8  1,177.7  1,263.1  1,282.6  Long term debt*  507.0  451.1  472.2  455.0  Dividend declared per common share  0.07  0.07  0.07  0.07  Millions of dollars (except per share amounts)  1$^{st}$ Quarter  2012  2$^{nd}$ Quarter  2012  3$^{rd}$ Quarter  2012  4$^{th}$ Quarter  2012  Revenue $ 63.3 $ 64.6 $ 98.7 $ 143.1 Adjusted EBITDA  23.0  25.1  24.8  33.4  Net earnings / (loss) attributable to shareholders from  continuing operations  2.5 6.3 0.04 6.6 Net earnings / (loss) attributable to shareholders  2.3  6.1  (0.2)  6.4  Net earnings / (loss) per share from continuing operations  0.02  0.04  0.00  0.04  Net earnings / (loss) per share  0.02  0.04  0.00  0.04  Adjusted net earnings  4.3  7.1  3.9  5.4  Adjust net earnings per share  0.03  0.05  0.02  0.03  Total Assets  1,265.6  1,416.0  1,967.1  2,778.2  Long term debt*  403.7  473.8  705.1  771.8  Dividend declared per common share  0.07  0.07  0.08  0.08  * Long term debt includes current and long term portion of debt and convertible debentures Quarterly Financial Information  Obligations to serve 