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Ormat Technologies Reports 2013 First Quarter Results

            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)
dbronicki@ormat.com        tfromer@kcsa.com / rfink@kcsa.com







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