Ormat Technologies Reports 2012 Fourth Quarter and Year End Results

     Ormat Technologies Reports 2012 Fourth Quarter and Year End Results

PR Newswire

RENO, Nev., Feb. 27, 2013

RENO, Nev., Feb. 27, 2013 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA)
today announced financial results for the fourth quarter and full year ended
December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)

The highlights for the year and recent 2013 developments:

  oTotal revenues increased 17.7 percentfor the year to $514.4 million;
  oProduct segment revenues increased 65.1 percent to a record of $186.9
    million with a record backlog of $262.0 million as of February 15, 2013, 9
    percent over last year;
  oElectricity generation increased by 7.3 percent with the addition of 51 MW
    from Tuscarora and McGinness Hills which became commercial in January 2012
    and July 2012, respectively;
  oAdjusted EBITDA increased 11.5 percent to $185.8 million;
  oObtainedfavorable financingfor Olkaria III Plant 1 and Plant 2 currently
    under construction and secured financing for the expected construction of
    Plant 3;
  oReceived $35.7 million in a tax equity transaction; and
  oRecorded an impairment charge of $229.1 million relating to the North
    Brawley power plant which resulted in a net loss of $206.7 million in the
    year.

Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat,
stated: "2012 was highlighted by total revenue growth of 17.7 percent as a
result of the continued strong performance of our product segment and the
steady, consistent growth in our electricity segment. New capacity, and
project enhancement implemented during the course of the year enabled us to
maintain margins in our electricity segment despite the influence of low
natural gas prices on the rates that we get from some of our older PPAs.

"The demand for new geothermal power plants and other power generating units
continues to drive significant growth in our product segment. 2013 as well,
started with a strong order flow.

"While net income was substantially affected by the non-cash impairment
charges of $236.4 million related to the North Brawley and OREG 4 power
plants, adjusted EBITDA increased 11.5 percent to $185.8 million with
operating cash flow of $93.2 million.

"Our long-term goal remains to develop projects where both resource and
markets allow them to be successful and to deliver the best possible products
to our customers. We will also continue to look for technical and commercial
ways to improve operations as a way to maximize value to our shareholders."

Ms. Bronicki added, "We expect our 2013 electricity revenues to be between
$335 million and $345 million and our product segment revenues to be between
$180 million and $190 million."

Financial Summary

Annual Results

For the year ended December 31, 2012, total revenues increased 17.7 percent
from $437.0 million in 2011 to $514.4 million in 2012. Product revenues
increased 65.1 percent to $186.9 million, up from $113.2 million in the year
ended December 31, 2011. The increase in product revenues reflects the
increase in new customer orders that we secured mainly in 2011. Electricity
revenues increased slightly to $327.5 million up from $323.8 million in the
year ended December 31, 2011. The increase in electricity revenues was
primarily due to the following:

  oRevenue contribution of $23.5 million from our Tuscarora and McGinness
    Hills power plant;
  oAdditional net revenue contribution of $3.2 million from other power
    plants in our portfolio; and
  oNet gain of $2.2 million on derivative contracts on oil and natural gas
    prices.

This increase was substantially offset by a $25.2 million reduction in
revenues due to the transition to short run avoided cost (SRAC) pricing under
our SO#4 contracts in California.

Operating loss for the year ended December 31, 2012 was $155.1 million,
compared to operating income of $64.0 million for the year ended December 31,
2011. The operating loss in 2012 was primarily attributable to the non-cash
impairment charges of $236.4 million taken at North Brawley and OREG 4.

For the year ended December 31, 2012, the company reported a net loss of
$206.7 million, or $4.56 per share, compared to $42.7 million or $0.95 per
share for the year ended December 31, 2011.

Adjusted EBITDA for the year ended December 31, 2011 was $185.8 million,
compared to $166.7 million for the year ended December 31, 2011. Adjusted
EBITDA excludes the impairment charges for the North Brawley and OREG 4 power
plants.  The reconciliation of GAAP net cash provided by operating activities
to Adjusted EBITDA and additional cash flows information is set forth below in
this release.

Net cash provided by operating activities was $93.2 million in the year ended
December 31, 2012, compared to $132.7 million in the year ended December 31,
2011. The decrease in cash provided by operating activity is mainly due to a
substantial change in working capital as a result of decrease in advance
payments on project under construction in the product segment.

As of December31, 2012 cash, cash equivalents and a short-term bank deposit
were $69.6 million. In addition, as of December31, 2012, the company had
available committed lines of credit with commercial banks aggregating $445.8
million, of which $184.9 million is unused.

Although the company has completed substantially all of its work on its tax
provision, certain review procedures are still to be completed prior to the
filing of its annual report on Form 10-K. As a result, while the company
believes the results contained in this release are materially correct, certain
amounts could be revised when the company files its annual report on Form
10-K.

Fourth Quarter Results

For the three-month period ended December 31, 2012, total revenues decreased
6.2 percent from $123.7 million in the fourth quarter of 2011 to $116.1
million in the fourth quarter of 2012. Electricity revenues increased 1.6
percent to $78.8 million from $77.6 million in the fourth quarter of 2011.
Product revenues decreased 19.3 percent to $37.3 million from $46.2 million in
the fourth quarter of 2011. This decrease is principally attributable to the
timing of revenue recognition in accordance with the percentage of completion
method for each of our products.

For the quarter, the company reported a net loss of $222.9 million or $4.91
per share, compared to $43.0 million, or $0.95 per share for the same period
in 2011.

Adjusted EBITDA for the fourth quarter of 2012 was $35.3 million, compared to
$45.1 million for the same period last year. The adjusted EBITDA was impacted
by various factors including timing of recognition of product segment revenue,
reduction in the electricity revenues associated with the SO#4 PPAs and a
mining tax in the amount of $3.3 million in respect of the years 2008 – 2010
that we have appealed. Adjusted EBITDA excludes the impairment charge for the
North Brawley power plant. The reconciliation of GAAP net cash provided by
operating activities to Adjusted EBITDA and additional cash flows information
is set forth below in this release.

Conference Call Details

Ormat will host a conference call to discuss its financial results and other
matters discussed in this press release at 10:00 A.M. EST on Wednesday,
February 27, 2013. The call will be available as a live, listen-only webcast
at www.ormat.com. During the webcast, management will refer to slides that
will be posted on the web site. The slides and accompanying webcast can be
accessed through the Webcast & Presentations in the Investor Relations section
of Ormat's website.

A webcast will be available approximately two hours after the conclusion of
the live call. A replay of the call will be available beginning approximately
at 1 p.m. EST on February 27, 2013 until 11:59 p.m. EST on March 6, 2013. To
access the replay, interested investors should call: (855) 859-2056 (U.S. and
Canada) or (404) 537-3406 (International) and enter the Reply code: 94897605.

About Ormat Technologies

With over four decades of experience, Ormat Technologies, Inc. is a leading
geothermal company and the only vertically integrated company solely engaged
in geothermal and recovered energy generation (REG). The company owns,
operates, designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation unit that
converts low-, medium- and high-temperature heat into electricity. With over
82 U.S. patents, Ormat's power solutions have been refined and perfected under
the most grueling environmental conditions. Ormat's flexible, modular
solutions for geothermal power and REG are ideal for the vast range of
resource characteristics. The company has engineered and built power plants,
which it currently owns or has supplied to utilities and developers worldwide,
totaling approximately 1600 MW of gross capacity. Ormat's current generating
portfolio of 575 MW (net) includes Brady, Brawley, Heber, Jersey Valley,
Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2,
OREG 3 and OREG 4 in the U.S.; Zunil and Amatitlan in Guatemala; Olkaria III
in Kenya; and, Momotombo in Nicaragua.

Ormat's Safe Harbor Statement

Information provided in this press release may contain statements relating to
current expectations, estimates, forecasts and projections about future events
that are "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements generally
relate toOrmat's plans, objectives and expectations for future operations and
are based upon its management's current estimates and projections of future
results or trends. Actual future results may differ materially from those
projected as a result of certain risks and uncertainties. For a discussion of
such risks and uncertainties, see "Risk Factors" as described inOrmat
Technologies, Inc.'s Annual Report on Form 10-K filed with theSecurities and
Exchange CommissiononFebruary 29, 2012and Quarterly Report on Form 10-Q
filed with theSecurities and Exchange CommissiononNovember 8, 2012.

These forward-looking statements are made only as of the date hereof, and we
undertake no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.

Ormat Technologies Contact: Investor Relations Contact:
Dita Bronicki               Todd Fromer/Rob Fink
CEO                         KCSA Strategic Communications
775-356-9029                212-896-1215 (Todd) /212-896-1206 (Rob)
dbronicki@ormat.com         tfromer@kcsa.com/ rfink@kcsa.com

Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Twelve-Month Periods Ended December 31, 2012 and 2011
(Unaudited)
                            Three Months Ended      Year Ended
                             December 31,            December 31,
                            2012          2011        2012          2011
                            (In thousands,          (In thousands,
                            except per share data)  except per share data)
Revenues:
 Electricity            $  78,819     $ 77,576    $  327,529    $ 323,849
 Product                   37,263       46,158       186,879      113,160
 Total revenues       116,082      123,734      514,408      437,009
Cost of revenues:
 Electricity               67,284       57,947       244,634      244,037
 Product                   26,771       32,796       135,346      76,072
 Total cost of        94,055       90,743       379,980      320,109
revenues
 Gross margin         22,027       32,991       134,428      116,900
Operating expenses:
 Research and              2,160        1,673        6,108        8,801
development expenses
 Selling and marketing     3,089        6,882        16,122       16,207
expenses
 General and               7,952        7,130        28,267       27,885
administrative expenses
 Impairment Charges        229,113      —            236,377      —
 Write-off of
unsuccessful exploration       720          —            2,639        —
activities
 Operating income     (221,007)    17,306       (155,085)    64,007
(loss)
Other income (expense):
 Interest income           197          138          1,201        1,427
 Interest expense, net     (19,528)     (15,028)     (64,069)     (69,459)
 Foreign currency
translation and transaction    1,369        196          242          (1,350)
gains (losses)
 Income attributable to    2,710        3,850        10,127       11,474
sale of tax benefits
 Other non-operating       246          206          590          671
income (expense), net
 Income (loss),
before income taxes and        (236,013)    6,668        (206,994)    6,770
equity inlosses of
investees
Income tax benefit             14,108       (49,261)     2,863        (48,535)
(expense)
Equity in losses of            (980)        (407)        (2,522)      (959)
investees, net
 Net loss             (222,885)    (43,000)     (206,653)    (42,724)
 Net income
attributable to                (136)        (80)         (414)        (332)
noncontrolling interest
 Net loss
attributable to the         $  (223,021)  $ (43,080)  $  (207,067)  $ (43,056)
Company's stockholders
Loss per share attributable
to the Company's            $  (4.91)     $ (0.95)    $  (4.56)     $ (0.95)
stockholders -- basic and
diluted
Weighted average number of
shares used in computation
of loss per share              45,431       45,431       45,431       45,431
attributable to the
Company's stockholders -
basic and diluted

Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2012 and 2011
(Unaudited)
                                                      December 31,
                                                      2012         2011
                                                      (In thousands)
ASSETS
Current assets:
 Cash and cash equivalents                        $ 66,628     $ 99,886
 Marketable securities                              —            18,521
 Short-term bank deposit                            3,010        —
 Restricted cash, cash equivalents and marketable   76,537       75,521
securities
 Receivables:
 Trade                                         55,680       51,274
 Related entity                                373          287
 Other                                         8,632        9,415
 Due from Parent                                    311          260
 Inventories                                        20,669       12,541
 Costs and estimated earnings in excess of          9,613        3,966
billings on uncompleted contracts
 Deferred income taxes                              1,241        1,842
 Prepaid expenses and other                         34,144       18,672
 Total current assets                     276,838      292,185
Unconsolidated investments                              2,591        3,757
Deposits and other                                      36,187       22,194
Deferred charges                                        36,521       40,236
Property, plant and equipment, net                      1,226,758    1,518,532
Construction-in-process                                 396,141      370,551
Deferred financing and lease costs, net                 31,371       28,482
Intangible assets, net                                  35,492       38,781
 Total assets                           $ 2,041,899  $ 2,314,718
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable and accrued expenses            $ 98,001     $ 105,112
 Billings in excess of costs and estimated          25,408       33,104
earnings on uncompleted contracts
 Current portion of long-term debt:
 Limited and non-recourse                      11,453       13,547
 Full recourse                                 28,649       20,543
 Senior secured notes (non-recourse)           28,231       21,464
 Total current liabilities                191,742      193,770
Long-term debt, net of current portion:
 Limited and non-recourse                           242,815      100,585
 Full recourse:
 Senior unsecured bonds                        250,904      250,042
 Other                                         82,344       63,623
 Revolving credit lines with banks                  73,606       214,049
 Senior secured notes (non-recourse)                312,926      341,157
Liability associated with sale of tax benefits          51,126       69,269
Deferred lease income                                   66,398       68,955
Deferred income taxes                                   13,873       54,665
Liability for unrecognized tax benefits                 7,280        5,875
Liabilities for severance pay                           22,887       20,547
Asset retirement obligation                             19,289       21,284
Other long-term liabilities                             5,148        4,253
 Total liabilities                        1,340,338    1,408,074
Equity:
 The Company's stockholders' equity:
 Common stock                                  46           46
 Additional paid-in capital                    732,140      725,746
 Retained earnings (accumulated deficit)       (38,372)     172,331
 Accumulated other comprehensive income        651          595
                                                        694,465      898,718
 Noncontrolling interest                            7,096        7,926
 Total equity                                  701,561      906,644
 Total liabilities and equity                $ 2,041,899  $ 2,314,718

Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows
Information
For the Three and Twelve-Month Periods Ended December 31, 2012 and 2011
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and
amortization. We calculate adjusted EBITDA as net income before interest,
taxes, depreciation and amortization, excluding impairment of long-lived
assets. EBITDA and adjusted EBITDA are not measurements of financial
performance or liquidity under accounting principles generally accepted in the
United States of America and should not be considered as an alternative to
cash flow from operating activities or as a measure of liquidity or an
alternative to net earnings as indicators of our operating performance or any
other measures of performance derived in accordance with accounting principles
generally accepted in the United States of America. EBITDA and adjusted EBITDA
are presented because we believe it is frequently used by securities analysts,
investors and other interested parties in the evaluation of a company's
ability to service and/or incur debt. However, other companies in our industry
may calculate EBITDA and adjusted EBITDA differently than we do. The following
table reconciles net cash provided by or used in operating activities to
EBITDA and Adjusted EBITDA for the three and twelve-month periods ended
December 31, 2012 and 2011:

                      Three Months Ended December  Year Ended December 31,
                      31,
                      2012            2011           2012          2011
                      (in thousands)               (in thousands)
Net cash provided by  $  30,835       $  34,220      $  93,219     $ 132,734
operating activities
Adjusted for:
Interest expense, net
(excluding
amortizationof          16,780          13,874         57,711       65,920
deferred financing
costs)
Interest income          (197)           (138)          (1,201)      (1,427)
Income tax provision     (14,108)        49,261         (2,863)      48,535
(benefit)
Adjustments to
reconcile net income
to net cashprovided
by operating             (227,080)       (52,083)       (197,419)    (79,060)
activities (excluding
depreciation and
amortization)
EBITDA                   (193,770)       45,134         (50,553)     166,702
Impairment charges       229,113         —              236,377      —
Adjusted EBITDA       $  35,343       $  45,134      $  185,824    $ 166,702
Net cash used in      $  (50,926)     $  (102,816)   $  (104,537)  $ (341,002)
investing activities
Net cash provided by
(used in) financing   $  49,196       $  109,405     $  (21,939)   $ 225,339
activities
Depreciation and      $  26,641       $  25,137      $  102,453    $ 96,398
amortization



SOURCE Ormat Technologies, Inc.

Website: http://www.ormat.com