Ormat Technologies Reports 2013 First Quarter Results PR Newswire RENO, Nevada, May 7, 2013 RENO, Nevada, May 7, 2013 /PRNewswire/ --Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the first quarter of 2013. (Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO) Financial highlights & Recent Developments: oTotal revenues amounted to $121.7 million; a 8.0% decrease from the first quarter of 2012, mainly due to a reduction in the electricity segment revenues of $9.3 million related to our SO#4 PPAs in California and a net loss of $4.6 million related to derivative instruments; oProduct segment strength continues with a Backlog of $224 million as of May 7, 2013. oReplaced two SO#4 PPAs tied to natural gas at the Mammoth complex with up to 21.5 MW of new long-term fixed price PPAs, with higher rates. oNet loss amounted to $1.9 million or $0.04 per share compare to net income of $8.0 million or $0.17 per share; net income excluding one-time termination fee of $9.0 million related to the replacement of Mammoth PPAs and a $4.6 million loss related to oil and gas derivative instruments was $11.6 million or $0.26 per share; oReceived $35.7 million in cash as a result of the ORTP tax equity transaction. oReached commercial operation for the 36 MW Olkaria III Plant 2 in Kenya; increasing our worldwide generating capacity to 611 MW; oSigned the Sarulla agreements and secured our role as a supplier for approximately $254 million; oSigned a 20-year PPA with Southern California Public Power Authority (SCPPA) for our 16 MW Wild Rose project in Nevada; Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: "Since the beginning of the year, we have achieved significant milestones that will further improve both segments performance. Our 2013 organic growth plan to reach 637 MW is on schedule. The 36 MW Plant 2 in the Olkaria III complex in Kenya reached commercial operation bringing the total capacity of our portfolio to 611 MW, and we are progressing with the construction of Heber Solar and Wild Rose projects that we expect to complete by the end of 2013. In 2014, we plan to bring on line plant 3 at the Olkaria III complex increasing its capacity to approximately 100 MW." "The power generation rose 4.2% over the same period last year, driven mainly by our McGinness Hills power plant, which began operations in July 2012. Additionally, we continue to take action to increase earnings and reduce the effect that natural gas prices have on our financial performance. We replaced two of the SO#4 PPAs with new long-term fixed price PPAs for our Mammoth complex in California. The improved energy rates under the new PPAs are secured until 2033 and will significantly improve the Mammoth complex profitability." "Our product segment continued to benefit from strong demand for new geothermal power plants and other power generating units. The strong backlog coupled with recent positive development in the Sarulla project provide enhanced visibility on our product revenue for the coming few years." Ms. Bronicki added, "We reaffirm our 2013 guidance and expect total revenues to be between $515 million to $535 million with electricity revenues between $335 million and $345 million and product segment revenues between $180 million and $190 million." Financial Summary For the three months ended March 31, 2013, total revenues decreased 8.0 percent to $121.7 million from $132.4 million in the first quarter of 2012. Product revenues increased slightly to $50.6 million from $50.1 million in the three months ended March 31, 2012. Electricity revenues decreased 13.6 percent to $71.1 million from $82.2 million in the three months ended March 31, 2012. The decrease was mainly due to a reduction of $9.3 million in revenues due to the transition to short run avoided cost pricing linked to natural gas prices in our SO#4 PPAs in California and a net loss of $4.6 million loss related to derivative instruments; this decrease was offset by revenue contribution from Tuscarora and McGinness power plants. Operating income for the three months ended March 31, 2013 was $8.5 million, compared to operating income of $25.7 million for the three months ended March 31, 2012. The decrease was primarily due to a decrease in our gross margin as a result of the reduction in the electricity revenues and a one-time termination fee related to the replacement of two Mammoth SO#4 PPAs included in the selling and marketing expenses. For the three months ended March 31, 2013, the company reported a net loss of $1.9 million, or $0.04 per share, compared to net income of $8.0 million or $0.17 per share for the three months ended March 31, 2012. Net income excluding a one-time termination fee of $9.0 million related to the replacement of two Mammoth PPAs and $4.6 million loss related to derivative instruments was $11.6 million or $0.26 per share; Adjusted EBITDA for the three months ended March 31, 2013 was $45.7 million, compared to $51.5 million for the three months ended March 31, 2012. 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 $18.2 million in the three months ended March 31, 2013, compared to $41.9 million in the three months ended March 31, 2012. As of March31, 2013, cash, cash equivalents and a short-term bank deposit were $60.6 million. In addition, as of March31, 2013, the company had available committed lines of credit with commercial banks aggregating $440.9 million, of which $152.9 million was unused. Conference Call Details Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 9:00 A.M. EDT on Wednesday, May 8, 2013. The call will be available as a live, listen-only webcast atwww.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. EDT on May 8, 2013 through 11:59 p.m. EDT, May 15, 2013. To access the replay, interested investors should call: (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (International) and enter the Reply code: 55307557. 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 611 MW (net) includes in the U.S.; in Guatemala; in Kenya; and, 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 CommissiononMarch 11, 2013and 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) firstname.lastname@example.org email@example.com / firstname.lastname@example.org Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three-Month Periods Ended March 31, 2013 and 2012 (Unaudited) Three Months Ended March 31, 2013 2012 (In thousands, except per share data) Revenues: Electricity $ 71,102 $ 82,247 Product 50,608 50,105 Total revenues 121,710 132,352 Cost of revenues: Electricity 56,937 57,931 Product 37,041 34,627 Total cost of revenues 93,978 92,558 Gross margin 27,732 39,794 Operating expenses: Research and development expenses 1,000 1,048 Selling and marketing expenses 11,571 4,922 General and administrative 6,650 7,314 expenses Write-off of unsuccessful — 768 exploration activities Operating income 8,511 25,742 Other income (expense): Interest income 41 388 Interest expense, net (15,863) (14,878) Foreign currency translation and 1,682 14 transaction gains (losses) Income attributable to sale of 3,532 2,517 tax benefits Other non-operating expense, net 1,417 (161) Income (loss), before income taxes and equity in losses of investees (680) 13,622 Income tax provision (1,217) (5,457) Equity in losses of investees, net — (140) Net income (loss) (1,897) 8,025 Net income attributable to (85) (130) noncontrolling interest Net income (loss) attributable to the Company's $ (1,982) $ 7,895 stockholders Earnings (loss) per share attributable to the Company's $ (0.04) $ 0.17 stockholders — basic and diluted: Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: Basic 45,431 45,431 Diluted 45,431 45,437 Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2013 and December 31, 2012 (Unaudited) March 31, December31, 2013 2012 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 57,627 $ 66,628 Short-term bank deposit 3,015 3,010 Restricted cash, cash equivalents and 124,887 76,537 marketable securities Receivables: Trade 42,779 55,680 Related entity 397 373 Other 10,962 8,632 Due from Parent 364 311 Inventories 18,258 20,669 Costs and estimated earnings in excess of 10,135 9,613 billings on uncompleted contracts Deferred income taxes 1,238 637 Prepaid expenses and other 30,151 34,144 Total current assets 299,813 276,234 Unconsolidated investments 2,789 2,591 Deposits and other 39,670 36,187 Deferred income taxes 52,939 53,989 Deferred charges 35,217 35,351 Property, plant and equipment, net 1,207,410 1,226,758 Construction-in-process 439,301 396,141 Deferred financing and lease costs, net 31,748 31,371 Intangible assets, net 34,681 35,492 Total assets $ 2,143,568 $ 2,094,114 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 78,406 $ 98,001 Deferred income taxes 20,392 20,392 Billings in excess of costs and estimated 21,749 25,408 earnings on uncompleted contracts Current portion of long-term debt: Limited and non-recourse: Senior secured notes 29,408 28,231 Other 15,494 11,453 Full recourse 28,760 28,649 Total current liabilities 194,209 212,134 Long-term debt, net of current portion: Limited and non-recourse: Senior secured notes 298,944 312,926 Other loans 281,930 242,815 Full recourse: Senior unsecured bonds 250,827 250,904 Other loans 78,882 82,344 Revolving credit lines with banks (full 88,349 73,606 recourse) Liability associated with sale of tax benefits 77,216 51,126 Deferred lease income 65,696 66,398 Deferred income taxes 45,118 45,059 Liability for unrecognized tax benefits 7,795 7,280 Liabilities for severance pay 23,501 22,887 Asset retirement obligation 19,665 19,289 Other long-term liabilities 4,917 5,148 Total liabilities 1,437,049 1,391,916 Equity: The Company's stockholders' equity: Common stock 46 46 Additional paid-in capital 733,683 732,140 Retained earnings (39,717) (37,735) Accumulated other comprehensive income 609 651 694,621 695,102 Noncontrolling interest 11,898 7,096 Total equity 706,519 702,198 Total liabilities and equity $ 2,143,568 $ 2,094,114 Ormat Technologies, Inc. and Subsidiaries Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information For the Three-Month Periods Ended March 31, 2013 and 2012 (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 and one-time termination fee. EBITDA and Adjusted EBITDA are not a measurement 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 they are 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 operating activities to EBITDA and Adjusted EBITDA for the three-month periods ended March 31, 2013 and 2012: Three Months Ended March 31, 2013 2012 (in thousands) Net cash provided by operating activities $ 18,216 $ 41,874 Adjusted for: Interest expense, net (excluding amortization of deferred financing costs) 14,336 13,647 Interest income (41) (388) Income tax provision (benefit) 1,217 5,457 Adjustments to reconcile net income or loss to net cash provided by operating activities (excluding depreciation and amortization) 3,024 (9,105) EBITDA 36,752 51,485 Termination fee 8,979 — Adjusted EBITDA $ 45,731 $ 51,485 Net cash used in investing activities $ (98,244) $ (62,333) Net cash provided by financing activities $ 71,027 $ 5,153 Depreciation and amortization $ 23,137 $ 24,744 SOURCE Ormat Technologies, Inc. Website: http://www.ormat.com
Ormat Technologies Reports 2013 First Quarter Results
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