Primary Energy Reports Second Quarter 2013 Results
OAK BROOK, IL, Aug. 13, 2013 /PRNewswire/ - Primary Energy Recycling Corporation (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced its unaudited financial and operational results for the three and six months ended June 30, 2013.
| Financial Results | ||||||||||||||||
| (in 000's of US$) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues | $ | 13,571 | $ | 12,565 | $ | 28,246 | $ | 26,787 | ||||||||
| Operations and maintenance expense | 4,451 | 4,165 | 9,521 | 8,376 | ||||||||||||
| Operating (loss) income | (11) | (5,385) | 1,209 | (3,076) | ||||||||||||
| Net loss and comprehensive loss | (893) | (5,453) | (1,002) | (4,901) | ||||||||||||
| EBITDA (1) | 6,480 | 936 | 14,102 | 9,524 | ||||||||||||
| Adjusted EBITDA (2) | 8,045 | 8,445 | 17,942 | 18,228 | ||||||||||||
| Net cash provided by (used in) operating activities | 4,102 | (743) | 11,117 | 6,645 | ||||||||||||
| Free Cash Flow (3) | 2,902 | (6,589) | 6,771 | (893) | ||||||||||||
| Cash and cash equivalents | 28,466 | 30,898 | - | - | ||||||||||||
| Credit facility debt balance | 75,942 | 85,000 | - | - | ||||||||||||
Second Quarter Review
- Customer blast furnace availability was down in the second quarter of 2013 which impacted operations of North Lake and Harbor Coal;
- The Ironside facility experienced a forced turbine outage in May and is expected to return to service in September 2013. Lost variable revenue in the third quarter is expected to be recovered through business interruption insurance;
- The Cokenergy facility completed the major overhaul of its steam turbine and condenser on time and on budget;
- The Portside facility had a solid quarter with revenue contribution from the condensing economizer and boiler turndown projects;
- Contract renegotiation discussions continued with the site host for Cokenergy. Management anticipates an agreement on terms before the current contract expires in October 2013;
- The Company declared and paid a dividend of $0.05 per Common Share; and
- Subsequent to quarter end, on August 1, 2013, the Company declared a $0.05 per Common Share dividend for payment on August 30, 2013 to shareholders of record on August 15, 2013.
"Furnace-related challenges created downward pressure on North Lake and Harbor Coal production in the second quarter," said John Prunkl, President and Chief Executive Officer of Primary Energy. "Towards the end of the reporting period, we did see improvement in blast furnace production levels back to the low end of the typical operating range, but we will not be surprised if challenges continue to occur until the furnace is overhauled in 2014."
| Operational Highlights | |||||||||||
| Three Months Ending June 30, | Six Months Ending June 30, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||
| Total Gross Electric Production Megawatt Hours (MWh) (4) | 304,779 | 313,023 | 689,139 | 650,151 | |||||||
| Total Thermal Energy Delivered (MMBtu) (5) | 918,254 | 946,452 | 2,106,579 | 2,429,557 | |||||||
| Harbor Coal Utilization (%) (6) | 42.9% | 68.3% | 55.2% | 72.5% | |||||||
Second Quarter 2013 Financial Results
The Company's revenue of $13.6 million for the second quarter of 2013 increased $1.0 million, or 8.0%, compared with revenue of $12.6 million for the second quarter of 2012. Revenue at the Portside facility increased by $0.6 million during the second quarter of 2013 primarily due to fuel cost savings of $0.4 million generated from the condensing economizer and boiler turndown capability and $0.2 million related to increased host operating levels. Revenue at the North Lake facility increased by $0.8 million primarily due to being fully operational during the second quarter of 2013 compared to only two months of operation in the second quarter of 2012. Revenue at the Ironside facility was impacted by a $0.3 million decrease due to an unplanned outage starting in May of 2013 and a decrease of $0.1 million due to reduced host operating levels.
The Company's revenue of $28.3 million for the first six months of 2013 increased $1.5 million, or 5.5%, compared with revenue of $26.8 million for the first six months of 2012. Revenue at the Portside facility increased by $1.4 million during 2013 primarily due to fuel cost savings of $1.2 million generated from the condensing economizer and boiler turndown capability and $0.2 million related to increased host operating levels. Revenue at the North Lake facility increased by $0.5 million primarily due to being fully operational for the six months in 2013 compared to only five months of operation in 2012. Revenue at the Ironside facility was impacted by a $0.3 million decrease due to an unplanned outage starting in May of 2013 and a decrease of $0.1 million due to reduced host operating levels.
Operations and maintenance expense for the second quarter of 2013 was $4.5 million compared to $4.2 million for the second quarter of 2012, an increase of $0.3 million or 6.9%. Operations and maintenance expense for the first six months of 2013 was $9.5 million compared to $8.4 million for the first six months of 2012, an increase of $1.1 million or 13.7%. The Company incurred periodic costs for the first six months of 2013 comprised of $2.9 million for boiler retubing work, $0.7 million for an emergency boiler repair and $0.1 million for ductwork repairs compared to periodic costs for the first six months of 2012 totaling $2.1 million for boiler retubing work and $0.4 million for ductwork repairs.
General and administrative expense for the second quarter of 2013 was $2.0 million compared to $2.1 million for the second quarter of 2012, a decrease of $0.1 million or 3.6%. General and administrative expense for the first six months of 2013 was $3.9 million compared to $4.6 million for the first six months of 2012, a decrease of $0.7 million or 15.2%. The Company did not incur management fees for the first six months of 2013 resulting in a net cost savings totaling $1.1 million when compared to the same period in 2012 offset by increased expenses of $0.4 million comprised of plant and liability insurance, accrued property taxes, IT expenses and other general expenses.
Employee benefits expense for the second quarter of 2013 was $1.5 million compared to $0.8 million for the second quarter of 2012, an increase of $0.7 million. Employee benefits expense for the first six months of 2013 was $3.1 million compared to $1.5 million for the first six months of 2012, an increase of $1.6 million. The increases noted are primarily due to additional compensation costs associated with transferred employees hired by the Company upon termination of the Management Agreement as well as cost recovery fees provided to the Company under the Management Agreement in the first six months of 2012 that did not recur in the first six months of 2013. Prior to June 1, 2012, the transferred employees were employees of the Company's former manager who previously provided operational and administrative services to the Company under the Management Agreement. For the period prior to June 1, 2012, management fees incurred by the Company totaled $1.1 million and were recorded as general and administrative expenses.
On a combined basis, general and administrative expense and employee benefits expense for the second quarter of 2013 was $3.5 million compared to $2.9 million for the second quarter of 2012, an increase of $0.6 million. The increase in expenses is comprised of $0.3 million of accrued property taxes, $0.2 million of stock based compensation , $0.1 million of plant compensation expense and plant and liability insurance of $0.1 million. The increase in expenses was offset by reduced professional fees of $0.1 million. On a combined basis, general and administrative expense and employee benefits expense for the first six months of 2013 was $7.0 million compared to $6.1 million for the first six months of 2012, an increase of $0.9 million. The increase in expenses is comprised of $0.3 million of stock based compensation, plant and liability insurance of $0.2 million, $0.2 million of plant compensation expense, $0.1 of IT expenses and $0.1 million of accrued property taxes offset by a reduction in professional fees of $0.2 million.
Equity in earnings of the Harbor Coal joint venture for the second quarter of 2013 was $(0.05) million compared to $0.5 million for the second quarter of 2012, a decrease of $0.6 million.
Equity in earnings of the Harbor Coal joint venture for the first six months of 2013 was $0.4 million compared to $1.2 million for the first six months of 2012, a decrease of $0.8 million. The decrease noted in the current quarter is the result of reduced revenue due to reduced blast furnace operation. Year to date revenue was down on a comparative basis due to increased natural gas injection due to its low cost and reduced coal through-put as well as reduced blast furnace operation that began in the second quarter.
Operating loss for the second quarter of 2013 was $0.01 million compared to $5.4 million for the second quarter of 2012, a decrease of $5.4 million. The decrease was the result of the net effect of the items discussed above.
Operating income for the first six months of 2013 was $1.2 million compared to an operating loss of $3.1 million for the first six months of 2012, an increase of $4.3 million. The increase was the result of the net effect of the items discussed above.
Net loss and comprehensive loss for the second quarter of 2013 was $0.9 million compared to $5.4 million for the second quarter of 2012, a decrease of $4.5 million. The decrease was the result of the net effect of the items discussed above.
Net loss and comprehensive loss for the first six months of 2013 was $1.0 million compared to $4.9 million for the first six months of 2012, a decrease of $3.9 million. The decrease was the result of the net effect of the items discussed above.
Conference Call and Webcast
Management will host a conference call to discuss the second quarter results on Wednesday, August 14, 2013 at 10 am ET. Following management's presentation, there will be a question and answer session. To participate in the conference call, please dial (888) 231-8191 or (647) 427-7450.
A digital conference call replay will be available until midnight on August 28, 2013 (ET) by calling (855) 859-2056 or (416) 849-0833. Please enter the password 20414104 when instructed. A webcast replay will be available for 365 days by accessing a link through the Events section at www.primaryenergyrecycling.com.
Forward-Looking Statements
When used in this news release, the words "intend", "likely", "anticipate", "expect", "project", "believe", "estimate", "forecast", "outlook" and similar expressions, are intended to identify forward-looking statements, including statements regarding maintenance and capital expenditures and the acquisition of the minority interest in PERH and the termination of Primary Energy's management agreement. Such statements are subject to certain risks, uncertainties and assumptions pertaining, but not limited, to recovery in the steel industry, continued strong performance from the mills we serve consistent with historical patterns, timely renewal of contracts at the Company's facilities, no protracted outages (planned or unplanned) for any of our facilities, operating and maintenance costs and general and administrative costs being similar to recent years except as described in this press release, regulatory parameters, weather and economic conditions and other factors discussed in the Company's public filings available on SEDAR at www.sedar.com. Additional risks and uncertainties not currently known or that are currently deemed to be immaterial may also materially and adversely affect the Company's business operations and outlook. Any of the matters highlighted in the Company's risk factor disclosure could have a material adverse effect on the Company's results of operations, business prospects and outlook, financial condition or cash flow, in which case, the market price or value of the Company's Common Shares could be adversely affected. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws.
About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation, headquartered in Oak Brook, Illinois, owns and operates four recycled energy projects and a 50% interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 298 megawatts and a combined steam generating capacity of 1.8M lbs/hour. Primary Energy Recycling Corporation creates value for its customers by capturing and recycling waste energy from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for resale back to its customers. For more information, please see www.primaryenergy.com
| 1As used herein, EBITDA means earnings before interest, taxes, depreciation and amortization and certain other adjustments. EBITDA is reconciled to net (loss) income and comprehensive (loss) income in the table below. EBITDA is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented by other companies. |
| 2As used herein, references to Adjusted EBITDA are to EBITDA as adjusted for certain non-recurring adjustments for major maintenance/outage work expenses, professional fees and other general and administrative expenses related to the buyout of the non-controlling interest and internalization of management and stock based compensation that represent recorded expenses based on specific circumstances and are not expected to be part of the Company's ongoing business activity. Adjusted EBITDA is reconciled to net income (loss) and comprehensive income (loss) in the table below. Adjusted EBITDA is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other companies. |
| 3As used herein, Free Cash Flow means net cash provided by operating activities as adjusted for capital expenditures. Free Cash Flow is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS. Therefore, Free Cash Flow may not be comparable to similar measures presented by other companies. |
| 4Total Gross Electric Production means the aggregate amount of electricity produced by all of the Company's facilities during the period. The amount is gross generation and is not reduced by internal electric usage of the facilities' auxiliary equipment. The unit of measure is megawatt hours (MWh). Due to the fixed and variable nature of customer contracts, MWh production cannot be directly tied to financial performance. |
| 5Total Thermal Energy Delivered means the aggregate amount of heat energy contained in the steam and heated water delivered to customers by all of the Company's facilities during the period. The unit of measure is million of British Thermal Units (MMBTU). Due to the fixed and variable nature of customer contracts, MMBTU production cannot be directly tied to financial performance. |
| 6Harbor Coal Utilization is a factor that incorporates the production level of a blast furnace and the amount of coal utilization per unit of blast furnace production as compared to a reference blast furnace production level and coal utilization rate per unit of blast furnace production. The measurement unit is a ratio expressed as a percentage. |
| Management believes that EBITDA, Adjusted EBITDA, Free Cash Flow, Total Gross Electric Production, Total Thermal Energy Delivered and Harbor Coal Utilization provide useful supplemental information regarding the performance of the Company, facilitate comparisons of historical periods and are indicative of the Company's operating results. Note however, that these items are performance measures only, and do not provide any measure of the Company's cash flow or liquidity, and are not a substitute for IFRS financial measures. |
Non-IFRS Measures
The Company reports its financial results in accordance with IFRS. The Company's management also evaluates and makes operating decisions using various other measures. Three such measures are EBITDA, Adjusted EBITDA and Free Cash Flow, which are non-IFRS financial measures. We believe these measures provide useful supplemental information regarding the performance of Company's business.
| Reconcilation of Net Loss and Comprehensive Loss | ||||||||||||||||
| to Adjusted EBITDA | ||||||||||||||||
| (in 000's of US$) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net loss and comprehensive loss | $ | (893) | $ | (5,453) | $ | (1,002) | $ | (4,901) | ||||||||
| Adjustment to net loss and comprehensive loss: | ||||||||||||||||
| Depreciation and amortization | 5,365 | 5,266 | 10,758 | 10,536 | ||||||||||||
| Depreciation and amortization included in equity in | ||||||||||||||||
| earnings of Harbor Coal joint venture | 1,009 | 1,009 | 2,018 | 2,018 | ||||||||||||
| Interest expense | 1,188 | 1,534 | 2,520 | 2,715 | ||||||||||||
| Deferred finance fees expensed upon extinguishment of debt | - | 765 | - | 765 | ||||||||||||
| Realized and unrealized (gain) loss on derivative contracts | (198) | 280 | (258) | 280 | ||||||||||||
| Loss on derecognition | 117 | 46 | 117 | 46 | ||||||||||||
| Income tax benefit | (108) | (2,511) | (51) | (1,935) | ||||||||||||
| EBITDA | $ | 6,480 | $ | 936 | $ | 14,102 | $ | 9,524 | ||||||||
| Adjustments to EBITDA: | ||||||||||||||||
| Major maintenance (1) | 1,443 | 1,393 | 3,659 | 2,486 | ||||||||||||
| Management Agreement termination fee | - | 6,000 | - | 6,000 | ||||||||||||
| Professional fees and other general and administrative expenses related to | ||||||||||||||||
| the buyout of the non-controlling interest and internalization of management | - | 90 | - | 192 | ||||||||||||
| Stock based compensation | 122 | 26 | 181 | 26 | ||||||||||||
| Adjusted EBITDA | $ | 8,045 | $ | 8,445 | $ | 17,942 | $ | 18,228 | ||||||||
1) Represents nonrecurring major maintenance expenditures for such items as boiler retubing work and other related maintenance expenditures and ductwork repairs.
| Reconcilation of Net Cash Provided by Operating Activities | ||||||||||||||||
| to Free Cash Flow | ||||||||||||||||
| (in 000's of US$) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net cash provided by (used in) operating activities |
$ | 4,102 | $ | (743) | $ | 11,117 | $ | 6,645 | ||||||||
| Less: Capital expenditures | (1,200) | (5,846) | (4,346) | (7,538) | ||||||||||||
| Free Cash Flow | $ | 2,902 | $ | (6,589) | $ | 6,771 | $ | (893) | ||||||||
| Primary Energy Recycling Corporation | ||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||
| (In thousands of U.S. dollars) | ||||||||||||
| ASSETS | June 30, 2013 | December 31, 2012 | ||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 28,466 | $ | 30,101 | ||||||||
| Accounts receivable | 8,583 | 8,266 | ||||||||||
| Inventory, net | 1,379 | 1,126 | ||||||||||
| Tax receivable | 728 | 691 | ||||||||||
| Prepaid expenses | 1,975 | 987 | ||||||||||
| Other current assets | 30 | 336 | ||||||||||
| Total current assets | 41,161 | 41,507 | ||||||||||
| Non-current assets: | ||||||||||||
| Property, plant and equipment, net | 185,309 | 185,355 | ||||||||||
| Intangible assets, net | 6,166 | 12,321 | ||||||||||
| Restricted cash | 3,275 | 3,445 | ||||||||||
| Interest rate cap | 148 | 85 | ||||||||||
| Investment in Harbor Coal joint venture | 56,059 | 58,600 | ||||||||||
| Total assets | $ | 292,118 | $ | 301,313 | ||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 2,446 | $ | 971 | ||||||||
| Short-term debt | 12,661 | 11,133 | ||||||||||
| Accrued property taxes | 1,043 | 1,725 | ||||||||||
| Accrued expenses | 5,996 | 6,558 | ||||||||||
| Total current liabilities | 22,146 | 20,387 | ||||||||||
| Non-current liabilities: | ||||||||||||
| Long-term debt | 59,702 | 64,913 | ||||||||||
| Deferred income tax liability, net | 1,727 | 1,753 | ||||||||||
| Interest rate swap | 84 | 155 | ||||||||||
| Asset retirement obligations | 2,759 | 3,063 | ||||||||||
| Total liabilities | 86,418 | 90,271 | ||||||||||
| Equity | ||||||||||||
| Common stock: no par value, unlimited shares authorized; | ||||||||||||
| 44,706,186 issued and outstanding | 274,479 | 274,479 | ||||||||||
| Contributed surplus | 37,596 | 37,466 | ||||||||||
| Accumulated shareholders' deficit | (106,375) | (100,903) | ||||||||||
| Total equity | 205,700 | 211,042 | ||||||||||
| Total liabilities and equity | $ | 292,118 | $ | 301,313 | ||||||||
| Primary Energy Recycling Corporation | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
| (In thousands of U.S. dollars, except share and per share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue: | ||||||||||||||||
| Capacity | $ | 9,018 | $ | 9,018 | $ | 18,036 | $ | 18,036 | ||||||||
| Energy service | 4,553 | 3,547 | 10,210 | 8,751 | ||||||||||||
| 13,571 | 12,565 | 28,246 | 26,787 | |||||||||||||
| Expenses: | ||||||||||||||||
| Operations and maintenance | 4,451 | 4,165 | 9,521 | 8,376 | ||||||||||||
| General and administrative | 2,060 | 2,138 | 3,920 | 4,620 | ||||||||||||
| Management agreement termination fee | - | 6,000 | - | 6,000 | ||||||||||||
| Employee benefits | 1,535 | 852 | 3,148 | 1,515 | ||||||||||||
| Depreciation and amortization | 5,365 | 5,266 | 10,758 | 10,536 | ||||||||||||
| Loss on derecognition | 117 | 46 | 117 | 46 | ||||||||||||
| Total operating expenses | 13,528 | 18,467 | 27,464 | 31,093 | ||||||||||||
| Equity in earnings of Harbor Coal joint venture | (54) | 517 | 427 | 1,230 | ||||||||||||
| Operating (loss) income | (11) | (5,385) | 1,209 | (3,076) | ||||||||||||
| Other expense | ||||||||||||||||
| Interest expense | (1,188) | (1,534) | (2,520) | (2,715) | ||||||||||||
| Deferred finance fees expensed upon extinguishment of debt | - | (765) | - | (765) | ||||||||||||
| Realized and unrealized gain on derivative | ||||||||||||||||
| contracts | 198 | (280) | 258 | (280) | ||||||||||||
| Loss before income taxes | (1,001) | (7,964) | (1,053) | (6,836) | ||||||||||||
| Income tax benefit | 108 | 2,511 | 51 | 1,935 | ||||||||||||
| Net loss and comprehensive loss | $ | (893) | $ | (5,453) | $ | (1,002) | $ | (4,901) | ||||||||
| Net loss and comprehensive loss attributable to: | ||||||||||||||||
| Owners of the Company | $ | (893) | $ | (4,070) | $ | (1,002) | $ | (3,106) | ||||||||
| Non-controlling interest | - | (1,383) | - | (1,795) | ||||||||||||
| $ | (893) | $ | (5,453) | $ | (1,002) | $ | (4,901) | |||||||||
| Net loss per share attributable | ||||||||||||||||
| to owners of the Company: | ||||||||||||||||
| Weighted average number of shares outstanding - basic | 44,706,186 | 44,706,186 | 44,706,186 | 44,706,186 | ||||||||||||
| Weighted average number of shares outstanding - diluted | 44,706,186 | 44,706,186 | 44,706,186 | 44,706,186 | ||||||||||||
| Basic and diluted net loss per share attributable to owners of the Company | $ | (0.02) | $ | (0.09) | $ | (0.02) | $ | (0.07) | ||||||||
| Primary Energy Recycling Corporation | ||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||
| (In thousands of U.S. dollars) | ||||||||||||
| Common | Contributed | Accumulated | Non-controlling | Total | ||||||||
| stock | surplus | deficit | Total | interest | equity | |||||||
| Balance - January 1, 2012 | $ | 274,479 | $ | 3,316 | $ | (107,748) | $ | 170,047 | $ | 79,502 | $ | 249,549 |
| Net loss and comprehensive loss | ||||||||||||
| for the six months ended June 30, 2012 | - | - | (3,106) | (3,106) | (1,795) | (4,901) | ||||||
| Buyout of non-controlling interest | - | 33,766 | - | 33,766 | (77,707) | (43,941) | ||||||
| Stock-based compensation | - | 26 | - | 26 | - | 26 | ||||||
| Balance - June 30, 2012 | $ | 274,479 | $ | 37,108 | $ | (110,854) | $ | 200,733 | $ | - | $ | 200,733 |
| Balance - January 1, 2013 | $ | 274,479 | $ | 37,466 | $ | (100,903) | $ | 211,042 | $ | - | $ | 211,042 |
| Net loss and comprehensive loss | ||||||||||||
| for the six months ended June 30, 2013 | - | - | (1,002) | (1,002) | - | (1,002) | ||||||
| Dividends on Common Shares | - | - | (4,470) | (4,470) | - | (4,470) | ||||||
| Stock-based compensation | - | 130 | - | 130 | - | 130 | ||||||
| Balance - June 30, 2013 | $ | 274,479 | $ | 37,596 | $ | (106,375) | $ | 205,700 | $ | - | $ | 205,700 |
| Primary Energy Recycling Corporation | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||
| (In thousands of U.S. dollars) | |||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
| Net loss and comprehensive loss for the period | $ | (893) | $ | (5,453) | $ | (1,002) | $ | (4,901) | |||||||||||
| Adjustments for: | |||||||||||||||||||
| Depreciation and amortization | 5,365 | 5,266 | 10,758 | 10,536 | |||||||||||||||
| Loss on derecognition | 117 | 46 | 117 | 46 | |||||||||||||||
| Unrealized gain on derivative contracts | (198) | 93 | (288) | 93 | |||||||||||||||
| Deferred finance fees expensed upon extinguishment of debt | - | 765 | - | 765 | |||||||||||||||
| Equity in earnings of Harbor Coal joint venture | 54 | (517) | (427) | (1,230) | |||||||||||||||
| Distributions from investment in Harbor Coal joint venture | 1,527 | 1,761 | 2,968 | 3,747 | |||||||||||||||
| Non-cash interest expense | 348 | 658 | 803 | 1,139 | |||||||||||||||
| Non-cash stock based compensation | 71 | 26 | 130 | 26 | |||||||||||||||
| Income tax | (85) | (2,502) | (26) | (1,935) | |||||||||||||||
| 6,306 | 143 | 13,033 | 8,286 | ||||||||||||||||
| Net change in non-cash working capital balances | (2,204) | (886) | (1,916) | (1,641) | |||||||||||||||
| Net cash provided by (used in) operating activities | 4,102 | (743) | 11,117 | 6,645 | |||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
| Change in restricted cash | - | (1,821) | 170 | (1,515) | |||||||||||||||
| Capital expenditures | (1,200) | (5,846) | (4,346) | (7,538) | |||||||||||||||
| Net cash used in investing activities | (1,200) | (7,667) | (4,176) | (9,053) | |||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
| Proceeds from issuance of debt | - | 85,000 | - | 85,000 | |||||||||||||||
| Purchase of non-controlling interest | - | (24,225) | - | (24,225) | |||||||||||||||
| Payments of deferred financing costs | - | (5,195) | - | (5,263) | |||||||||||||||
| Repayment of debt | (1,527) | (36,416) | (4,106) | (42,773) | |||||||||||||||
| Dividends on Common Shares | (2,235) | - | (4,470) | - | |||||||||||||||
| Net cash (used in) provided by financing activities | (3,762) | 19,164 | (8,576) | 12,739 | |||||||||||||||
| Net (decrease) increase in cash | (860) | 10,754 | (1,635) | 10,331 | |||||||||||||||
| Cash and cash equivalents - beginning of period | 29,326 | 20,144 | 30,101 | 20,567 | |||||||||||||||
| Cash and cash equivalents - end of period | $ | 28,466 | $ | 30,898 | $ | 28,466 | $ | 30,898 | |||||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||||||
| Cash paid during the period for interest | $ | 895 | $ | 863 | $ | 1,762 | $ | 1,565 | |||||||||||
| Cash paid during the period for income taxes | $ | - | $ | 130 | $ | 12 | $ | 168 | |||||||||||
SOURCE Primary Energy Recycling Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article