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Ram Power Announces 2012 Year End Results

Ram Power Announces 2012 Year End Results 
RENO, NV -- (Marketwire) -- 03/27/13 --  Ram Power, Corp. (TSX: RPG)
("Ram Power" or the "Company"), a renewable energy company focused on
the development, production and sale of electricity from geothermal
energy, is pleased to announce its operating results for the fiscal
year ended December 31, 2012. This earnings release should be read in
conjunction with Ram Power's financial statements, and management's
discussion and analysis ("MD&A"), which are available on the
Company's website at www.ram-power.com and have been posted on SEDAR
at www.sedar.com. 
HIGHLIGHTS 
San Jacinto-Tizate Project 


 
--  Phase I, which commenced commercial operation in January 2012,
    generated 299,904 net MWh resulting in revenue of $28.1 million (an
    increase of 529%) and Adjusted EBITDA (as defined below) of $10.4
    million in 2012 compared to revenue of $4.4 million and Adjusted
    EBITDA of $(12.6) million in 2011;
--  Successfully negotiated a 17% increase to the tariff under the power
    purchase agreement to recoup additional project costs and enhance
    overall project returns;
--  The new tariff is expected to result in an increase in annual revenue
    of approximately $10 million in 2013; and
--  Successful completion of the Phase II project as scheduled and
    budgeted with commercial operation attained in December 2012.

  
Refinance of Corporate Credit Facility through the issuance of Senior
Debentures 


 
--  Successfully closed a C$50.9 million Senior Debenture Private
    Placement;
--  The net proceeds of the Private Placement, together with approximately
    C$4 million of the Company's funds, were used to repay in full the
    Company's existing corporate credit facility and associated
    transaction costs;
--  The Private Placement resulted in the Company reducing its cost of
    funds on its corporate debt from 16% to 8.5% on a per annum basis;
--  The Private Placement extended the term of the Company's corporate
    debt from September 30, 2013 to March 27, 2018 with the Senior
    Debentures maturing on that date; and
--  The January and February payments-in-kind of interest and fees with
    common shares under the prior corporate credit facility combined with
    the Private Placement 
is expected to increase the Company's liquidity
    $1.3 million in 2013 and $3.8 million annually thereafter.

  
Reorganization of its Reno, Nevada office 


 
--  Optimizes efficiency and aligns the organization to better focus on
    Nicaragua operations; and
--  Resulted in expected savings of $3 million in 2013, and $4 million
    annually thereafter.

  
FINANCIAL OVERVIEW 
The financial results of Ram Power for the year ended December 31,
2012 and 2011 are summarized below: 


 
                                                                            
                                           -------------------------------- 
                                            For the year ended December 31, 
(all figures in U.S dollars)                     2012             2011      
                                           ---------------  --------------- 
Total revenue                              $    28,061,520  $     4,458,153 
Direct costs of energy production                4,359,874        1,855,449 
Gross profit                                    23,701,646        2,602,704 
General and administrative expenses            (11,866,214)     (12,059,911)
Operating loss                                  (2,845,615)     (11,673,337)
Loss on impairment                             (42,518,283)    (152,213,219)
Gain on warrant liability valuation              5,008,947        8,739,785 
Other loss                                      (1,540,749)      (3,661,013)
Deferred taxes                                           -       12,421,558 
Total loss and comprehensive loss              (53,789,966)    (151,444,363)
Total loss and comprehensive loss per                                       
 share                                     $         (0.19) $         (0.64)
                                                                            
                                           -------------------------------- 
                                                  As at December 31,        
                                                 2012             2011      
                                           ---------------  --------------- 
Total assets                               $   506,823,848  $   510,825,081 
Long-term debt                                 210,591,894      212,984,403 
Total liabilities                              294,542,373      248,321,132 
Cash                                            51,330,351       57,195,330 
Working capital*                               (11,325,167)      45,918,495 
*2012 working capital included the net balance of the Corporate Credit      
 Facility of $47,635,186                                                    

 
For the fiscal year ended December 31, 2012, the Company reported
revenue of $28.1 million and a total loss and comprehensive loss of
$53.8 million, or $(0.19) per share, compared to revenue of $4.5
million and a total loss and comprehensive loss of $151.4 million, or
$(0.64) per share, for fiscal 2011. The 529% increase in revenue
resulted from commencing operations of the San Jacinto Phase I
expansion in January 2012. 
Adjusted EBITDA increased to $10.4 million for the year ended
December 31, 2012 compared to $(12.6) million for the prior year. The
$23 million increase in Adjusted EBITDA for the year ended December
31, 2012 principally resulted from: 


 
--  $21.1 million increase in gross profit from San Jacinto operations
--  $3.7 million increase due to 2011 delay damages and other gains and
    losses
--  $2.8 million increase due to reduced salaries and benefits related to
    the Company's 2011 restructuring
--  $2.8 million decrease due to a reduction in 2011 of the supplier tax
    accrual
--  $1.8 million decrease related to 2012 other operating costs associated
    with maintaining inactive exploration and development properties

  
For the year ended December 31, 2012, the Company had net operating
cash outflows of $3.6 million, net investing cash outflows of $53.8
million and net financing cash inflows of $51.5 million, which
combined for a net decrease in cash of $5.9 million. The Company
expended $57.3 million for additions to geothermal properties,
including $55.3 million for the Phase I and Phase II San Jacinto
expansions. At December 31, 2012, the Company had cash of $51.3
million, of which $44.1 million was held for current use in the Phase
I and Phase II San Jacinto expansions. 
Negative working capital of $11.3 million as of December 31, 2012
resulted from reclassification of the Company's $50 million Corporate
Credit Facility to current liabilities based on a maturity date of
September 30, 2013. On March 27, 2013, the Company completed an
offering of 50,855 units at a price of C$1,000 per unit for gross
proceeds of C$50.9 million. Each unit consists of a C$1,000 secured
debenture of the Company at an interest rate of 8.5% per annum
payable semi-annually, maturing on March 27, 2018, and 1,000 share
purchase warrants. Each warrant entitles the holder to acquire one
common share of the Company at a price of C$0.30 until March 27,
2018. The net proceeds from the offering were used to repay, in 
full,
the Corporate Credit Facility which eliminated the Company's negative
working capital position.  
"Commercial operation for the Phase II expansion at San Jacinto
brings to a close the construction of a state of the art facility
which will produce clean, renewable energy for decades to come,"
stated Antony Mitchell, Executive Chairman for Ram Power, Corp. "As
evidenced by the recent Company reorganization as well as
re-financing of the Corporate Credit Facility, the Company continues
to examine each facet of our business in our ongoing commitment to
deliver shareholder value."  
Ram Power will hold its earnings call to discuss the year ending
December 31, 2012 financial and operating results on Thursday, March
28, 2013 at 10:00 am EDT (7:00 am PDT). To listen to the call, please
dial 1-866-696-5910 by entering the participant pass code 8897919, or
on the web at
http://bellwebcasting.ca/audience/index.asp?eventid=44041078. 
About Ram Power, Corp. 
Ram Power is a renewable energy company engaged in the business of
acquiring, exploring, developing, and operating geothermal
properties, and has interests in geothermal projects in the United
States, Canada, and Latin America.  
USE OF NON-GAAP MEASURES 
Certain non-GAAP measures referenced in this news release have no
standardized meaning under International Financial Reporting
Standards ("IFRS") and, therefore, are unlikely to be comparable to
similar measures presented by other issuers. Where we reference
non-GAAP measures, we provide definitions. For example, EBITDA is
commonly defined as earnings before interest, taxes, depreciation and
amortization. EBITDA is most directly comparable to the GAAP measure
operating income or loss, except that depreciation and amortization
expenses are included and other gains and losses are excluded in
measuring operating income or loss, but depreciation and amortization
expenses are excluded and other gains and losses are included in
measuring EBITDA. Accordingly, where EBITDA measures are disclosed by
the Company, they equal operating income or loss plus depreciation
and amortization expenses and other gains, less other losses.
Although a non-GAAP measure, management believes users of the
Company's financial information find EBITDA and EBITDA adjusted to
exclude non-cash stock compensation expense and credits, and warrant
liability gains and losses ("Adjusted EBITDA") useful in assessing
the Company's financial performance. In the Company's earnings
releases, consolidated financial statements and MD&As, unless
otherwise noted, all financial data is prepared in accordance with
IFRS.  
Cautionary Statements  
This news release contains certain "forward-looking information"
which may include, but is not limited to, statements with respect to
future events or future performance, management's expectations
regarding the Company's growth, results of operations, estimated
future revenue, requirements for additional capital, revenue and
production costs, future demand for and prices of electricity,
business prospects and opportunities. In addition, statements
relating to estimates of recoverable geothermal energy "reserves" or
"resources" or energy generation are forward-looking information, as
they involve implied assessment, based on certain estimates and
assumptions, that the geothermal resources and reserves described can
be profitably produced in the future. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management. Often, but not always,
forward-looking statements can be identified by the use of words such
as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "predicts", "intends", "targets", "aims",
"anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could",
"should", "would", "might" or "will" be taken, occur or be achieved.
A number of known and unknown risks, uncertainties and other factors
may cause the actual results or performance to materially differ from
any future results or performance expressed or implied by the
forward-looking information. Such factors include, among others,
general business, economic, competitive, political and social
uncertainties; the actual results of current geothermal energy
production, development and/or exploration activities and the
accuracy of probability simulations prepared to predict prospective
geothermal resources; changes in project parameters as plans continue
to be refined; possible variations of production rates; failure of
plant, equipment or processes to operate as anticipated; accidents,
labor disputes and other risks of the geothermal industry; political
instability or insurrection or war; labor force availability and
turnover; delays in obtaining governmental approvals or in the
completion of development or construction activities, or in the
commencement of operations; as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form. These factors should be considered carefully and readers of
this news release should not place undue reliance on forward-looking
information. 
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. The information in this news release,
including such forward-looking information, is made as of the date of
this news release and, other than as required by applicable
securities laws, Ram Power assumes no obligation to update or revise
such information to reflect new events or circumstances. 
Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email: sscott@ram-power.com
www.ram-power.com 
 
 
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