RENO, Nev., Nov. 6, 2012 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the third quarter of 2012.
Quarterly highlights and recent developments:
- Total revenues increased 23 percent to a record $136.1 million
- Adjusted EBITDA for the quarter amounted to $48.2 million ($150.5 million for the nine months ended September 30, 2012)
- Product backlog was $191.6 million as of November 6, 2012
- Received $47.0 million in cash grants for the McGinness Hills power plant
- $7.3 million non-cash pre-tax impairment charge and $3.8 million loss on put and swap contracts on oil and natural gas prices resulted in a $0.5 million net loss.
(Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
Commenting on the results, Dita Bronicki, chief executive officer of Ormat, stated: "We are pleased with the progress we made during the third quarter. Total revenues rose 23 percent, driven by a strong order pipeline in our product segment. Power plant generation grew by almost 12% as new capacity came on line. Operating income excluding impairment charges and the loss on put and swap contracts amounted to $25.3 million.
"We accomplished a number of key objectives during the third quarter. We took proactive steps to reduce our revenue exposure to natural gas and oil through hedging deals that will provide either a fixed or a minimum rate through 2013. For the long term, we have made progress in the replacement of part of the California SO#4 PPAs with fixed-price PPAs. Additionally, the 30 MW McGinness Hills power plant became fully commercial and received full energy rates through the quarter. We also received $47.0 million in cash grants for McGinness Hills. In Kenya, we signed an agreement for up to $310 million of non-recourse financing for the expansion of our Olkaria III geothermal plant. Out of the first draw under the loan, that is expected shortly, approximately $150 million will be used to refinance corporate loans and therefore replace corporate debt by non-recourse debt."
Financial Summary
Third Quarter Results
For the three months ended September 30, 2012, total revenues increased by 22.8 percent to $136.1 million from $110.8 million in the third quarter of 2011. Product revenues more than doubled to $54.7 million, from $24.0 million in the three months ended September 30, 2011. Electricity revenues decreased 6.2 percent to $81.5 million, from $86.8 million in the three months ended September 30, 2011.
During the third quarter of 2012, the OREG 4 power plant, which generates electricity using recovered heat and has a carrying value of $10.9 million, was tested for recoverability due to continued low output and was written down to its fair value of $3.6 million, resulting in an impairment loss of $7.3 million.
Operating income for the three months ended September 30, 2012 decreased by $10.0 million to $14.2 million from $24.2 million for the three months ended September 30, 2011. The decrease is principally attributed to the OREG 4 impairment loss, and lower gross margin in our electricity segment resulting mainly from the low gas prices in our SO#4 power purchase agreements in California and $3.8 million loss on put and swap contracts on oil and natural gas prices, offset by the contribution of the new Tuscarora and McGinness power plants and to higher gross margin in our product segment due to the increase in product revenues as a result of new customer orders that were secured in 2011 and 2012.
For the quarter, the company reported net loss of $0.5 million or $0.01 per share (basic and diluted), compared to net income of $1.0 million, or $0.02 per share (basic and diluted), for the same quarter a year ago.
Adjusted EBITDA for the third quarter of 2012 was $48.2 million, compared to $46.7 million for the same quarter last year. Adjusted EBITDA excludes the impairment loss in respect of the OREG 4 power plant. The reconciliation of GAAP net cash used in operating activities to Adjusted EBITDA and additional cash flows information is set forth below.
As of September 30, 2012, cash, cash equivalents and short-term bank deposit were $40.5 million. In addition, as of September 30, 2012, the company has available, committed lines of credit with commercial banks aggregating $487.2 million, of which $85.4 million is unused.
Commenting on the outlook for 2012, Bronicki said, "We expect our 2012 product revenues to be $175 to $180 million and our electricity revenues to be approximately $325 million."
Nine-Month Results
For the nine months ended September 30, 2012, total revenues increased 27.1 percent to $398.3 million from $313.3 million in the nine months ended September 30, 2011. Net income for the period was $16.2 million, or $0.35 per share (basic and diluted), compared to $0.3 million, or $0.00 per share (basic and diluted), in the same period in 2011. The increase is principally attributable to the $19.2 million increase in operating income and the $9.9 million decrease in interest expense, net of capitalized interest.
Product revenues more than doubled to $149.6 million, from $67.0 million in the nine months ended September 30, 2011. Electricity revenues slightly increased to $248.7 million, up from $246.3 million in the nine months ended September 30, 2011.
Adjusted EBITDA for the nine months ended September 30, 2012 was $150.5 million, compared to $121.6 million for the same period last year. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA and additional cash flows information is set forth below.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters included in this press release at 9 a.m. EST on Wednesday, November 7, 2012. 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.
The webcast will be available approximately two hours after the conclusion of the live call. A replay will be available from 11 a.m. EST on November 7, 2012. Please call: (855) 859-2056 (U.S. and Canada) (404) 537-3406 (International) and enter the replay code: 49596290.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat's products and systems are covered by 82 U.S. patents. Ormat has engineered and built power plants that it currently owns or has supplied to utilities and developers worldwide, totaling over 1,500 MW of gross capacity. Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3, and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.
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 February 29, 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, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Nine-Month Periods Ended September 30, 2012 and 2011 (Unaudited)
|
|||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||
(In thousands, except per share data) |
(In thousands, except per share data) |
||||||||||
Revenues: |
|||||||||||
Electricity |
$ |
81,452 |
$ |
86,815 |
$ |
248,710 |
$ |
246,273 |
|||
Product |
54,685 |
24,026 |
149,616 |
67,002 |
|||||||
Total revenues |
136,137 |
110,841 |
398,326 |
313,275 |
|||||||
Cost of revenues: |
|||||||||||
Electricity |
61,466 |
57,941 |
177,350 |
186,090 |
|||||||
Product |
42,130 |
17,137 |
108,575 |
43,276 |
|||||||
Total cost of revenues |
103,596 |
75,078 |
285,925 |
229,366 |
|||||||
Gross margin |
32,541 |
35,763 |
112,401 |
83,909 |
|||||||
Operating expenses: |
|||||||||||
Research and development expenses |
1,436 |
2,346 |
3,948 |
7,128 |
|||||||
Selling and marketing expenses |
3,445 |
2,940 |
13,033 |
9,325 |
|||||||
General and administrative expenses |
6,208 |
6,269 |
20,315 |
20,755 |
|||||||
Impairment of a power plant |
7,264 |
— |
7,264 |
— |
|||||||
Write-off of unsuccessful exploration activities |
— |
— |
1,919 |
— |
|||||||
Operating income |
14,188 |
24,208 |
65,922 |
46,701 |
|||||||
Other income (expense): |
|||||||||||
Interest income |
280 |
438 |
1,004 |
1,289 |
|||||||
Interest expense, net |
(15,400) |
(23,909) |
(44,541) |
(54,431) |
|||||||
Foreign currency translation and transaction gains (losses) |
615 |
(2,659) |
(1,127) |
(1,546) |
|||||||
Income attributable to sale of tax benefits |
2,311 |
2,344 |
7,417 |
7,624 |
|||||||
Other non-operating income, net |
215 |
347 |
344 |
465 |
|||||||
Income, before income taxes and equity in |
|||||||||||
losses of investees |
2,209 |
769 |
29,019 |
102 |
|||||||
Income tax benefit (provision) |
(1,479) |
305 |
(11,245) |
726 |
|||||||
Equity in losses of investees, net |
(1,245) |
(71) |
(1,542) |
(552) |
|||||||
Net income (loss) |
(515) |
1,003 |
16,232 |
276 |
|||||||
Net income attributable to noncontrolling interest |
(67) |
(137) |
(278) |
(252) |
|||||||
Net income (loss) attributable to the Company's stockholders |
$ |
(582) |
$ |
866 |
$ |
15,954 |
$ |
24 |
|||
Earnings (loss) per share attributable to the Company's stockholders — basic and diluted: |
$ |
(0.01) |
$ |
0.02 |
$ |
0.35 |
$ |
— |
|||
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: |
|||||||||||
Basic |
45,431 |
45,431 |
45,431 |
45,431 |
|||||||
Diluted |
45,431 |
45,440 |
45,438 |
45,442 |
|||||||
Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of September 30, 2012 and December 31, 2011 (Unaudited) |
||||||
September 30, |
December 31, |
|||||
2012 |
2011 |
|||||
(In thousands) |
||||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
37,524 |
$ |
99,886 |
||
Marketable securities |
— |
18,521 |
||||
Short-term bank deposit |
3,008 |
— |
||||
Restricted cash, cash equivalents and marketable securities |
76,296 |
75,521 |
||||
Receivables: |
||||||
Trade |
80,166 |
51,274 |
||||
Related entity |
351 |
287 |
||||
Other |
10,265 |
9,415 |
||||
Due from Parent |
196 |
260 |
||||
Inventories |
17,786 |
12,541 |
||||
Costs and estimated earnings in excess of billings on uncompleted contracts |
7,704 |
3,966 |
||||
Deferred income taxes |
1,729 |
1,842 |
||||
Prepaid expenses and other |
31,497 |
18,672 |
||||
Total current assets |
266,522 |
292,185 |
||||
Unconsolidated investments |
3,476 |
3,757 |
||||
Deposits and other |
27,416 |
22,194 |
||||
Deferred charges |
38,636 |
40,236 |
||||
Property, plant and equipment, net |
1,491,411 |
1,518,532 |
||||
Construction-in-process |
367,762 |
370,551 |
||||
Deferred financing and lease costs, net |
26,821 |
28,482 |
||||
Intangible assets, net |
36,319 |
38,781 |
||||
Total assets |
$ |
2,258,363 |
$ |
2,314,718 |
||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable and accrued expenses |
$ |
96,516 |
$ |
105,112 |
||
Billings in excess of costs and estimated earnings on uncompleted contracts |
32,546 |
33,104 |
||||
Current portion of long-term debt: |
||||||
Limited and non-recourse: |
||||||
Senior secured notes (non-recourse) |
25,609 |
21,464 |
||||
Other loans |
13,744 |
13,547 |
||||
Full recourse |
20,755 |
20,543 |
||||
Total current liabilities |
189,170 |
193,770 |
||||
Long-term debt, net of current portion: |
||||||
Limited and non-recourse: |
||||||
Senior secured notes (non-recourse) |
329,000 |
341,157 |
||||
Other loans |
93,015 |
100,585 |
||||
Full recourse: |
||||||
Senior unsecured bonds |
250,982 |
250,042 |
||||
Other loans |
49,869 |
63,623 |
||||
Revolving credit lines with banks (full recourse) |
187,474 |
214,049 |
||||
Liability associated with sale of tax benefits |
56,528 |
69,269 |
||||
Deferred lease income |
67,051 |
68,955 |
||||
Deferred income taxes |
58,758 |
54,665 |
||||
Liability for unrecognized tax benefits |
7,139 |
5,875 |
||||
Liabilities for severance pay |
20,818 |
20,547 |
||||
Asset retirement obligation |
22,548 |
21,284 |
||||
Other long-term liabilities |
2,857 |
4,253 |
||||
Total liabilities |
1,335,209 |
1,408,074 |
||||
Equity: |
||||||
The Company's stockholders' equity: |
||||||
Common stock |
46 |
46 |
||||
Additional paid-in capital |
730,583 |
725,746 |
||||
Retained earnings |
184,649 |
172,331 |
||||
Accumulated other comprehensive income |
697 |
595 |
||||
915,975 |
898,718 |
|||||
Noncontrolling interest |
7,179 |
7,926 |
||||
Total equity |
923,154 |
906,644 |
||||
Total liabilities and equity |
$ |
2,258,363 |
$ |
2,314,718 |
||
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information
For the Three and Nine-Month Periods Ended September 30, 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 nine-month periods ended September 30, 2012 and 2011:
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||
(in thousands) |
(in thousands) |
|||||||||||
Net cash provided by (used in) operating activities |
$ |
(9,695) |
$ |
59,008 |
$ |
62,384 |
$ |
98,514 |
||||
Adjusted for: |
||||||||||||
Interest expense, net (excluding amortization of deferred financing costs) |
14,202 |
23,222 |
40,931 |
52,046 |
||||||||
Interest income |
(280) |
(438) |
(1,004) |
(1,289) |
||||||||
Income tax provision (benefit) |
1,479 |
(305) |
11,245 |
(726) |
||||||||
Adjustments to reconcile net income or loss to net cash provided by operating activities (excluding depreciation and amortization) |
35,236 |
(34,749) |
29,661 |
(26,977) |
||||||||
EBITDA |
40,942 |
46,738 |
143,217 |
121,568 |
||||||||
Impairment charge |
7,264 |
— |
7,264 |
— |
||||||||
Adjusted EBITDA |
$ |
48,206 |
$ |
46,738 |
$ |
150,481 |
$ |
121,568 |
||||
Net cash provide by (used in) investing activities |
$ |
13,417 |
$ |
(102,445) |
$ |
(53,611) |
$ |
(238,186) |
||||
Net cash provided by (used in) financing activities |
$ |
(32,882) |
$ |
58,176 |
$ |
(71,135) |
$ |
115,934 |
||||
Depreciation and amortization |
$ |
26,056 |
$ |
23,256 |
$ |
75,813 |
$ |
71,261 |
||||
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) |
SOURCE Ormat Technologies, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article