Ormat Technologies Reports 2013 Third Quarter Results

Ormat Technologies Reports 2013 Third Quarter Results

            Electricity revenues increased 14.7% to $89.0 million
                   Company raises revenue guidance for 2013

RENO, Nev., Nov. 5, 2013 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc.
(NYSE:ORA) today announced financial results for the third quarter of 2013.

Quarterly financial highlights compared to the same quarter last year:

  oElectricity revenue increased by 14.7% to $89.0 million;
  oGross margin grew 75 basis points to 30.4%;
  oOperating income reached $29.8 million compared to $12.1 million;
  oNet income attributable to the Company's shareholders was $13.0 million or
    $0.28 per share (diluted), compared to a net loss of $0.6 million or $0.01
    per share (diluted);
  oAdjusted EBITDA grew 25.0% to $60.3 million; and
  oDeclared dividend of $0.04 per share

Operational highlights and recent developments:

  oIncreased electricity generation by 5.0% to 985,531 MWh, driven by new
    capacity coming on line at Olkaria III Plant 2 in Kenya, and increased
    generation at the McGuiness Hills plant;
  oSuccessfully completed the world's largest binary geothermal plant, the
    100 MW Ngatamariki in New Zealand, under a $142.0 million EPC contract;
  oSecured a 10-year Power Purchase Agreement (PPA) with the Southern
    California Public Power Authority to supply power from the Heber 1
    geothermal plant in California beginning December 16, 2015. The new PPA
    replaces the Standard Offer Contract No. 4 (SO#4), which is tied to
    natural gas prices, with fixed-price contract at a higher rate;
  oEntered into a jointdevelopment agreementwith eBay to develop a 5 MW
    recovered energy generation power plant in Utah to supply cleaner
    electricity to eBay's new data center; and
  oSigned an agreement for a greenfield development of the Hu'u Dompu
    geothermal prospect in Indonesia

Dita Bronicki, Chief Executive Officer of Ormat, stated: "During the third
quarter, we continued to deliver strong financial and operational results. In
the electricity segment, we benefitted from the first full quarter of
commercial operation of the Olkaria III Plant 2 in Kenya, which helped drive a
5.0% increase in generation. In addition, gross margin increased in the
electricity segment to 31.1% due to the contribution of the new plants added
to our portfolio in the past two years and to our continued focus on improving
operational efficiencies at our existing plants. Looking ahead, we are poised
to continue these positive trends and we aim to bring new capacity on line and
replace legacy PPAs with more favorable agreements."

"A substantial milestone in the product segment is the completion of the 100MW
Ngatamariki geothermal power plant. The completion of the plant in less than
24 months from the award with generation at 104% of its designed output is a
further testament to our execution capability and the suitability of our
technology to large geothermal facilities. Looking forward, our backlog
remains strong as we secured new orders in the third quarter 2013 and stands
at approximately $173.0million with more than $120.0 million expected to be
recognized in 2014."

Ms. Bronicki concluded, "We are raising our 2013 guidance and expect total
revenue to be between $525.0 million to $535.0 million with electricity
segment revenues to be approximately $330.0 million and product segment
revenues to be between $195.0 million and $205.0 million."

Financial Summary

For the three months ended September 30, 2013, total revenues reached $130.7
million from $132.3 million in the third quarter of 2012, a decrease of 1.2%.
Electricity revenues increased 14.7% to $89.0 million from $77.6 million in
the three months ended September 30, 2012. Product revenues decreased 23.6% to
$41.8 million from $54.7 million in the three months ended September 30, 2012.

Operating income for the three months ended September 30, 2013 was $29.8
million, compared to $12.1 million for the three months ended September 30,
2012. Third quarter 2012 results included a $7.3 million impairment loss
related to the OREG 4 recovered energy generation power plant.

For the three months ended September 30, 2013, the Company reported net income
attributable to the Company's shareholders of $13.0 million or $0.28 per share
(diluted) compared to net loss of $0.6 million or $0.01 per share (diluted)
for the three months ended September 30, 2012.

Adjusted EBITDA for the three months ended September 30, 2013 was $60.3
million, compared to $48.2 million for the three months ended September 30,
2012, an increase of 25.0%. The reconciliation of GAAP net cash provided by
(used in) operating activities and net income to EBITDA and Adjusted EBITDA
and additional cash flows information is set forth below in this release.

Net cash provided by operating activities was $32.2 million in the nine months
ended September 30, 2013, compared to $62.4 million in the nine months ended
September 30, 2012.

On November 5, 2013, ORMAT's Board of Directors approved a payment of a
quarterly dividend of $0.04 per share pursuant to the Company's dividend
policy, which targets an annual payoff ratio of at least 20% of the Company's
net income. The dividend will be paid on December 4, 2013 to shareholders of
record as of closing of business on November 20, 2013.

As of September 30, 2013 cash, cash equivalents were $35.4 million. In
addition, as of September 30, 2013, the Company had $145.2 million of unused
corporate borrowing capacity under existing lines of credit with different
commercial banks.

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. EST on Wednesday,
November 6, 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.

An archive of the webcast will be available approximately 10 minutes after the
conclusion of the live call.

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 has over 500 employees in
the United States and about 600 overseas. Ormat's flexible, modular solutions
for geothermal power and REG are ideal for the vast range of resource
characteristics. The company has engineered, manufactured and constructed
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 595 MW (net) is spread globally in the
U.S., Guatemala and Kenya.

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 to Ormat'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 in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 11, 2013.

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, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Nine and Three-Month Periods Ended September 30, 2013 and 2012
(Unaudited)
                                                                
                                  Three Months Ended    Nine Months Ended
                                   September 30       September 30
                                  2013        2012      2013       2012
                                  (In thousands, except (In thousands, except
                                  per share data)     per share data)
Revenues:                                                      
Electricity                       $88,994     $77,612   $245,005   $238,837
Product                           41,755      54,685    157,329    149,616
Total revenues                    130,749     132,297   402,334    388,453
Cost of revenues:                                              
Electricity                       61,356      59,924    175,085    172,785
Product                           29,637      42,130    110,335    108,575
Total cost of revenues            90,993      102,054   285,420    281,360
Gross margin                      39,756      30,243    116,914    107,093
Operating expenses:                                            
Research and development expenses 838         1,436     3,446      3,948
Selling and marketing expenses    2,575       3,346     17,861     12,752
General and administrative        6,546       6,132     20,264     20,163
expenses
Impairment charge                            7,264     --         7,264
Write-off of unsuccessful         --          --        --         1,919
exploration activities
Operating income                  29,797      12,065    75,343     61,047
Other income (expense):                                        
Interest income                   742         280       870        1,004
Interest expense, net             (18,459)    (15,400)  (51,826)   (44,541)
Foreign currency translation and  1,258       615       3,844      (1,127)
transaction gains (losses)
Income attributable to sale of    5,027       2,311     14,342     7,417
tax benefits
Other non-operating expense, net  137         215       1,583      344
Income before income taxes and     18,502      86        44,156     24,144
equity inlosses of investees
* Income tax provision             (5,201)     (1,088)   (15,028)   (10,148)
Equity in losses of investees, net (158)       (1,245)   (149)      (1,542)
Income (loss) from continuing     13,143      (2,247)   28,979     12,454
operations
Discontinued operations:                                       
Income from discontinued
operations (including gain on      --          2,123     5,311      4,875
disposal of $3,646,$0, $3,646 and
$0, respectively)
Income tax provision              --          (391)     (614)      (1,097)
Total income from discontinued    --          1,732     4,697      3,778
operations
                                                                
* Net income (loss)               13,143      (515)     33,676     16,232
Net income attributable to        (193)       (67)      (600)      (278)
noncontrolling interest
Net income(loss) attributable to $12,950     $(582)    $33,076    $15,954
the Company's stockholders
                                                                
Earnings (loss) per share
attributable to the Company's                                    
stockholders:
Basic:                                                         
Income (loss)from continuing     $0.29       $(0.05)   $0.62      $0.27
operations
Discontinued operations           --        0.04     0.10      0.08
Net Income (loss)                 $0.29       $(0.01)   $0.72      $0.35
                                                                
Diluted:                                                       
Income (loss)from continuing     $0.28       $(0.05)   $0.62      $0.27
operations
Discontinued operations           --        0.04     0.10      0.08
Net Income (loss)                 $0.28       $(0.01)   $0.72      $0.35
                                                                
Weighted average number of shares
used in computation of earnings                                  
per share attributable to the
Company's stockholders:
Basic                             45,438      45,431    45,433     45,431
Diluted                           45,494      45,431    45,454     45,438

* The "income tax provision" for the nine months ended September 30 2013
includes a correction of $3.1 million (increase) for the three-month period
ended March 31, 2013 previously reported by the Company, and a corresponding
reduction in net income.


Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of September 30, 2013 and December 31, 2012
(Unaudited)
                                                              
                                               September 30, December 31,
                                               2013            2012
                                                              As Revised
                                               (In thousands)
ASSETS
Current assets:                                              
Cash and cash equivalents                      $35,435       $66,628
Short-term bank deposit                       --              3,010
Restricted cash, cash equivalents and          84,197         76,537
marketable securities
Receivables:                                                 
Trade                                          60,526         55,680
Related entity                                 442            373
Other                                          24,643         8,632
Due from Parent                                373            311
Inventories                                    20,396         20,669
Costs and estimated earnings in excess of      36,201         9,613
billings on uncompleted contracts
Deferred income taxes                          162            637
Prepaid expenses and other                     36,724         34,144
Total current assets                           299,099        276,234
Unconsolidated investments                      5,419          2,591
Deposits and other                              31,110         36,187
Deferred income taxes                           15,966         21,283
Deferred charges                                34,635         35,351
Property, plant and equipment, net              1,383,353      1,252,873
Construction-in-process                         335,915        396,141
Deferred financing and lease costs, net         29,806         31,371
Intangible assets, net                          33,032         35,492
Total assets                                   $2,168,335    $2,087,523
LIABILITIES AND EQUITY
Current liabilities:                                         
Accounts payable and accrued expenses          $83,751       $98,001
Deferred income taxes                         20,428         20,392
Billings in excess of costs and estimated      12,708         25,408
earnings on uncompleted contracts
Current portion of long-term debt:                            
Limited and non-recourse:                                     
Senior secured notes                           30,059         28,231
Other loans                                    18,288         11,453
Full recourse                                  28,875         28,649
Total current liabilities                      194,109        212,134
Long-term debt, net of current portion:                        
Limited and non-recourse:                                     
Senior secured notes                           286,786        312,926
Other loans                                    272,710        242,815
Full recourse:                                                
Senior unsecured bonds                         250,674        250,904
Other loans                                    64,414         82,344
Revolving credit lines with banks (full        123,288        73,606
recourse)
Liability associated with sale of tax benefits  65,402         51,126
Deferred lease income                           64,217         66,398
Deferred income taxes                           52,233         45,059
Liability for unrecognized tax benefits         8,878          7,280
Liabilities for severance pay                   23,642         22,887
Asset retirement obligation                     20,436         19,289
Other long-term liabilities                     4,576          5,148
Total liabilities                              1,431,365      1,391,916
                                                              
Equity:                                                      
The Company's stockholders' equity:                          
Common stock                                   46             46
Additional paid-in capital                     737,125        732,140
Retained earnings                              (13,066)       (44,326)
Accumulated other comprehensive income         527            651
                                               724,632        688,511
Noncontrolling interest                        12,338         7,096
Total equity                                   736,970        695,607
Total liabilities and equity                   $2,168,335    $2,087,523



Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows
Information
For the Nine and Three-Month Periods Ended September 30, 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 tables reconcile net cash provided by (used in) operating
activities and net income to EBITDA and Adjusted EBITDA for the nine and
three-month periods ended September 30, 2013 and 2012:

                             Three Months Ended     Nine Months Ended
                              September 30           September 30
                             2013        2012        2013         2012
                                                               
                             (in thousands)        (in thousands)
Net cash provided by (used    $12,276   $(9,695)  $32,226    $62,384
in) operating activities
Adjusted for:                                                   
Interest expense, net
(excluding amortization of    17,405     14,202     47,367      40,931
deferred financing costs)
Interest income               (742)      (280)      (870)       (1,004)
Income tax provision          5,201      1,479      15,642      11,245
Adjustments to reconcile net
income or loss to net
cashprovided by operating    26,115     35,236     72,361      29,661
activities
(excludingdepreciation and
amortization)
EBITDA                        $60,255   $40,942   $166,726   $143,217
                                                               
Impairment charge             --        7,264      --         7,264
Termination fee               --        --        8,979       --
Adjusted EBITDA               $60,255   $48,206   $175,705   $150,481
Net cash provided by (used    $(25,029) $13,417   $(128,198) $(53,611)
in) investing activities
Net cashprovided by (used    $19,295   $(32,882) $64,779    $(71,135)
in) financing activities
                                                               
                                                               
                             Three Months Ended     Nine Months Ended
                              September 30           September 30
                             2013        2012        2013         2012
                                                               
                             (in thousands)        (in thousands)
Net income (loss)             $13,143   $(515)    $33,676    $16,232
Adjusted for:                                                   
Interest expense, net
(including amortization of    17,717     15,120     50,956      43,537
deferred financing costs)
Income tax provision          5,201      1,479      15,642      11,245
Depreciation and amortization 24,194     24,858     66,452      72,203
EBITDA                        $60,255   $40,942   $166,726   $143,217
                                                               
Impairment charge             --        7,264      --         7,264
Termination fee               --        --        8,979       --
Adjusted EBITDA               $60,255   $48,206   $175,705   $150,481
                                                               

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

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