BEIJING, June 19, 2013 /PRNewswire-FirstCall/ -- China
Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China Hydroelectric"
or "the Company"), an owner, developer and operator of small
hydroelectric power projects in the
People's Republic of China, today announced its unaudited
financial results for the first quarter ended March 31, 2013.
"Our results for the first quarter were satisfactory in light of
the ongoing drought conditions in two of our three main operating
regions," stated Mr. Amit Gupta,
Chairman of China Hydroelectric. "Precipitation was 16% below the
long-term average for the Company as a whole, and significantly
below the first quarter of 2012, which was particularly wet.
Despite the external headwinds, I am happy to highlight that the
Company has been able to deliver significant reductions in general
and administrative expenses and average costs of debt, which are in
line with management targets."
Dr. You Su-Lin, interim Chief Executive Officer added, "I am
pleased with our operational performance in the first quarter.
Despite an 18% decline in electricity production, we mitigated the
precipitation fluctuation through our tight control of operating
expenses and reduction in average cost of debt. Naturally, weather
patterns will vary from quarter to quarter, but we are managing our
operations and costs to cushion the downside in unfavorable
hydrologic periods, while maximizing the upside when conditions are
good."
Operating Highlights
Precipitation in Q1 2013 was below the long-term average in two
of the three provinces in which the Company operates, resulting in
total precipitation approximately 16% below the long-term average.
In contrast, the first quarter of 2012 was unusually wet, with
total precipitation at 133% of the long-term average. Precipitation
levels are one of the principal factors affecting the Company's
revenues, profitability and cash generated by operations. Other
factors include, but are not limited to: consistency of
precipitation; upstream reservoir conditions; the cascading effects
of multiple hydroelectric power projects on a single waterway; and
upstream precipitation levels in the Company's river basins. The
various provinces in which the Company operates are subject to
different weather patterns or systems and precipitation fluctuates
from region to region and quarter to quarter.
The following table presents precipitation levels for the
regions as a percentage of historical long term average for the
periods indicated.
Precipitation – Percentage of Long-Term Average
(1)(2)
Province
|
|
Q1 2013
|
Q1 2012
|
|
Fiscal
2012
|
Fiscal
2011
|
Fiscal
2010
|
Zhejiang
|
|
106%
|
160%
|
|
134%
|
70%
|
130%
|
Fujian
|
|
77%
|
137%
|
|
128%
|
62%
|
114%
|
Yunnan
|
|
49%
|
66%
|
|
87%
|
86%
|
N/M
|
Total
Company
|
|
84%
|
133%
|
|
121%
|
84%
|
120%
|
|
(1) Data collected by
the Company and by provincial and national meteorological recording
stations
|
(2) The Company has
refined collection of precipitation data since our last press
release and believes refined collections are more representative of
historical data.
|
N/M – Not
material.
|
Due to the shortfall in precipitation, electricity sold declined
approximately 18% when compared to the year ago quarter. Reduced
rainfall resulted in a utilization rate of 29.4%, approximately 7
percentage points below the first quarter of 2012.
The following table presents some key comparative financial and
other information (in US$ millions, except for electricity sold,
effective tariff, per ADS data and percentages):
Summary
Data
|
|
Q1 2013
|
|
Q1 2012
|
|
% Change
|
Continuing
Operations
|
|
|
|
|
|
|
Electricity sold
(millions kWh)
|
|
329.2
|
|
402.7
|
|
-18%
|
Effective tariff
(RMB/kWh)
|
|
0.38
|
|
0.36
|
|
6%
|
Average effective
utilization rate
|
|
29.4%
|
|
36.5%
|
|
-19%
|
Revenues
|
|
$18.3
|
|
$21.1
|
|
-13%
|
Gross
profit
|
|
$10.1
|
|
$13.0
|
|
-22%
|
Adjusted EBITDA
(1)
|
|
$12.8
|
|
$16.9
|
|
-24%
|
GAAP net
(loss)/income
|
|
($1.6)
|
|
$0.8
|
|
-300%
|
GAAP net
(loss)/income per ADS
|
|
($0.03)
|
|
$0.01
|
|
-400%
|
Non-GAAP net income
(2)
|
|
$0.2
|
|
$1.8
|
|
-89%
|
Non-GAAP net income
per ADS (2)
|
|
$0.00
|
|
$0.03
|
|
-100%
|
Net gain from
discontinued operations
|
|
-
|
|
1.81
|
|
-100%
|
|
|
|
|
|
|
|
(1) See "Net
(loss)/income to adjusted EBITDA reconciliation" below
|
(2) See "GAAP net
(loss)/income to non-GAAP net income reconciliation"
below
|
Financial Highlights
Revenues
Revenues, net of value added taxes, from continuing operations
for the first quarter of 2013 were $18.3
million, a decrease of 13%, or $2.8
million, from $21.1 million
for the first quarter of 2012. The decrease was principally due to
lower precipitation levels in all of the Company's three operating
regions compared to the first quarter of 2012. The Company
sold 329.2 million kWh from continuing operations in the first
quarter of 2013, a decrease of 73.5million kWh, or 18%, from 402.7
million kWh sold in the first quarter of 2012. The decrease in
electricity sold was partially offset by a higher effective tariff.
The effective tariff for the first quarter of 2013 was RMB 0.38/kWh, compared to RMB 0.36/kWh in Q1 2012.
Cost of Revenues
Cost of revenues for the first quarter of 2013 was $8.2 million, unchanged from the first quarter of
2012. Cost of revenues in the first quarter of 2013 primarily
includes (i) repairs and maintenance costs of $0.3 million, (ii) labor cost of $0.9 million, and (iii) depreciation and
amortization (non-cash expenses included in cost of revenues from
continuing operations) of $5.7
million. Each category was unchanged from the first quarter
of 2012.
Gross Profit and Margin
Gross profit for the first quarter of 2013 decreased 22% to
$10.1 million, from $13.0 million in the prior-year period. Gross
margin for the first quarter of 2013 decreased to 55.2% compared to
61.6% in the same period of 2012 primarily due to decreased
revenues and the fixed nature of certain expenses included in cost
of revenues.
Operating Expenses
General and administrative expenses ("G&A expenses") for the
first quarter of 2013 decreased 35.7% to $2.7 million, from $4.2
million for the first quarter of 2012. The decrease was due
to the closure of the U.S. office and reduction of professional
service expenses.
Adjusted EBITDA and EBITDA Margin
Adjusted EBITDA attributable to common shareholders decreased
24% to $12.8 million in the first
quarter of 2013 compared to $16.9
million in the same period of 2012. Adjusted EBITDA margin
decreased to 70% for the first quarter of 2013 compared to 75% in
the same period of 2012. On a continuing basis, Adjusted EBITDA
decreased 9%, or $1.2 million, to
$12.8 million in the first quarter of
2013 from $14.0 million in the same
period of 2012. Thus, on a continuing basis, Adjusted EBITDA margin
increased from 66% to 70% year over year.
Interest Expenses, net
Net interest expense was $6.4
million in the first quarter of 2013, compared to
$7.4 million in the same period of
2012. The decrease was primarily due to a decrease in interest
payments on loans owed to third party individuals due to a decrease
in the balance of third party loans from the first quarter of
2012.
GAAP and Non-GAAP Net Income /(Loss)
Net loss attributable to common shareholders was $1.6 million in the first quarter of 2013
compared to net income of $0.8
million in the same period of 2012. The net loss was mainly
caused by the change in fair value of warrant liability which
amounted to $1.8 million, a result of
an increase in the Company's stock price from December 31, 2012 to March
31, 2013.
Non-GAAP net income was $0.2
million, or $0.00 per diluted
ADS, for the first quarter of 2013, compared to net income of
$1.8 million, or $0.03 per diluted ADS, for the first quarter of
2012. For reconciliation between GAAP and non-GAAP earnings, see
the table below entitled "GAAP Net (Loss)/Income to Non-GAAP Net
Income Reconciliation."
Weighted average American depository shares ("ADSs") used in the
first quarter of 2013 and 2012 per share calculations were 54.0
million ADSs, representing 162.0 million ordinary shares,
respectively.
Balance Sheet
Cash and cash equivalents were $9.2
million as of March 31, 2013,
compared to $8.0 million as of
December 31, 2012. Long term bank
loans were $247.9 million (including
current portion of long-term loan, amounted to $36.4 million) as of March
31, 2013, a slight decrease from $248.5 million (including current portion of
long-term loan, amounted to $35.5
million) as of December 31,
2012. The short term loans as of March 31, 2013 were unchanged from December 31, 2012.
Liquidity
During the first quarter of 2013, the Company's working capital
deficiency was $80 million. The
Company raised $3.1 million through
borrowings from banks and other institutions. Investors should
expect the Company to have a working capital deficit in the
foreseeable future, due to the use of leverage to finance the
construction and acquisition of hydroelectric projects. The Company
regularly raises funds through various means, such as new
borrowings from banks and other non-financial institutions. New
borrowings are used for multiple purposes, such as daily operating
liquidity, to fund new projects, and to refinance existing
short-term loans into longer-term debt.
Historically, the Company relied on the ready availability of
credit in China to fund its
operations and expansion. Commencing in 2011 and extending into
2012, the Company's ability to obtain financing from its principal
lenders in China was constrained
by restrictions on bank lending imposed by the central government
in an effort to contain inflation. The Company started exploring
wider forms of financing since Q4 2012 and is currently in various
stages of negotiations with a number of financial institutions that
could provide refinancing packages to extend the duration of the
Company's debt obligations.
The management remains confident in the Company's ability to
secure capital in order to fund its liquidity needs, debt
obligations and growth plans, but obtaining financing cannot be
guaranteed. In the event that the Company fails to raise funds
sufficient to meet its liquidity needs, the Company may be forced
to substantially curtail its operations or otherwise take measures
that would materially and adversely affect its current operations
and business prospects.
Second Quarter 2013 Precipitation Update
Regional precipitation imbalances are continuing in the second
quarter of 2013. Yunnan continues
to face drought conditions and Fujian and Zhejiang experienced at- or above-average
levels of precipitation. Please note that all precipitation updates
are offered as of the date of this release, and may be materially
different when actual precipitation results are reported.
Non-GAAP Net Income Figures
Non-GAAP net income for the first quarter of 2013 and 2012
excludes the following non-cash charges: stock-based compensation
expenses, exchange gains or losses and the change in fair value of
warrant liabilities. A reconciliation of GAAP and non-GAAP items is
provided in the table entitled "GAAP Net (Loss) to Non-GAAP Net
Income Reconciliation."
Net Income/(Loss) to Adjusted EBITDA Reconciliation
Adjusted EBITDA is defined by the Company as earnings before
interest, taxes, depreciation and amortization and excluding
certain non-cash charges, including: stock-based compensation
expenses, exchange losses, and change in fair value of warrant
liabilities. For further details, see the table entitled "Net
income/(loss) to adjusted EBITDA reconciliation."
Conference Call
China Hydroelectric will host a conference call at 6:00 am (Pacific) / 9:00
am (Eastern) / 9:00 pm
(Beijing/Hong Kong) on Friday,
June 21, 2013 to discuss its first quarter financial results
and recent business activities. To access the live teleconference,
please dial (U.S.) +1-888-481-2844 or (International)
+1-719-457-2645, and enter pass code 7826538. This call is being
webcast by ViaVid Communications and can be accessed by clicking on
this link: http://public.viavid.com/index.php?id=105001, or at
ViaVid's website at http://www.viavid.com.
A playback will be available through July
5, 2013, by dialing (U.S.) +1-877-870-5176 or
(International) +1-858-384-5517 and entering the pass code
7826538.
About China Hydroelectric Corporation
China Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China
Hydroelectric" or "the Company") is an owner, developer and
operator of small hydroelectric power projects in the People's Republic of China. Through its
geographically diverse portfolio of operating assets, the Company
generates and sells electric power to local power grids. The
Company's primary business is to identify, evaluate, acquire,
develop, construct and finance hydroelectric power projects. The
Company currently owns 25 operating hydropower stations in
China with total installed
capacity of 517.8 MW, of which it acquired 21 operating stations
and constructed four. These hydroelectric power projects are
located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan. Hydropower is an
important factor in meeting China's electric power needs, accounting for
approximately 22% of total nation-wide capacity.
For further information about China Hydroelectric Corporation,
please visit the Company's website at:
http://www.chinahydroelectric.com.
Cautionary Note Regarding Forward-looking Statements and
Weather Data
Statements contained herein that address operating results,
performance, events or developments that we expect or anticipate
will occur in the future are forward-looking statements. The
forward-looking statements include, among other things, statements
relating to the Company's business strategies and plan of
operations, the Company's ability to acquire hydroelectric assets,
the Company's capital expenditure and funding plans, the Company's
operations and business prospects, projects under development,
construction or planning, the Company's ability to meet its
liquidity needs, the availability of restructuring measure or of
lending by financing sources, including banks in China, the regulatory environment, and the
business outlook for second quarter 2013. The forward-looking
statements are based on the Company's current expectations and
involve a number of risks, uncertainties and contingencies, many of
which are beyond the Company's control, which may cause actual
results, performance or achievements to differ materially from
those anticipated. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, estimated or projected. Among the factors that could
cause actual results to materially differ include: supply and
demand changes in the electric markets, changes in electricity
tariffs, hydrological conditions, the Company's relationship with
and other conditions affecting the power grids we service, the
Company's production and transmission capabilities, availability of
sufficient and reliable transmission resources, our plans and
objectives for future operations and expansion or consolidation,
interest rate and exchange rate changes, the effectiveness of the
Company's cost-control measures, the Company's liquidity and
financial condition, environmental laws and changes in political,
economic, legal and social conditions in China, the availability of financing from
lenders in China due to bank
restrictions or otherwise, and other factors affecting the
Company's operations that are set forth in the Company's Annual
Report on Form 20-F for the year ended December 31, 2012 filed with the Securities and
Exchange Commission (the "SEC") on April 18,
2013 and in the Company's future filings with the SEC.
Unless required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
This release also contains statistical data and estimates that
we obtained from provincial and national meteorological recording
stations. Although we believe that this data is reliable and
consistent with our experience, we have not independently verified
it.
About Non-GAAP Financial Measures
To supplement China Hydroelectric consolidated financial results
presented in accordance with GAAP, China Hydroelectric uses
non-GAAP net income and adjusted EBITDA, which are non-GAAP
financial measures. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP
financial measures, please see the tables captioned "Net
Income/(Loss) to Adjusted EBITDA Reconciliation" and "GAAP Net
(Loss) to Non-GAAP Net Income Reconciliation" below.
China Hydroelectric believes that these non-GAAP financial
measures provide meaningful supplemental information regarding its
performance and liquidity by excluding certain expenses that may
not be indicative of its operating performance and financial
condition from a cash perspective. We believe that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing the Company's performance and when planning
and forecasting future periods. These non-GAAP financial measures
also facilitate management's internal comparisons to China
Hydroelectric historical performance and liquidity. China
Hydroelectric has computed its non-GAAP financial measures using
methods consistent with the Company's annual report on Form 20-F.
We believe these non-GAAP financial measures are useful for
investors because they permit greater transparency with respect to
supplemental information used by management in its financial and
operational decision making. A limitation of using these non-GAAP
financial measures is that they exclude certain charges that have
been and may continue for the foreseeable future to be significant
expenses in the Company's results of operations.
Statement Regarding Unaudited Financial Information
The financial information set forth in this press release is
unaudited and subject to adjustments. Adjustments to the financial
statements may be identified when our annual financial statements
are prepared and audit work is performed for the year end audit,
which could result in significant differences from this unaudited
financial information.
For further information, please contact:
China Hydroelectric
Corporation
Scott
Powell
Investor Relations
and Corporate Communications
Phone (U.S.):
+1-646-650-1351
Email:
ir@chinahydroelectric.com
ICR, LLC
William
Zima
Managing
Director
Phone (U.S.):
+1-646-308-1635
Phone (China):
+86-10-6583-7511
Email:
william.zima@icrinc.com
|
James Hull
Financial
Analyst
Phone (China):
+86-10-6408-2341
Email:
james.hull@chinahydroelectric.com
|
CHINA HYDROELECTRIC
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In US$ 000's, except
for share and per share data)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2013
|
|
March 31,
2012
|
Continuing
Operations:
|
|
|
|
|
Revenues
|
|
18,337
|
|
21,134
|
Cost of
revenues
|
|
(8,209)
|
|
(8,169)
|
Gross
profit
|
|
10,128
|
|
12,965
|
Operating
expenses
|
|
|
|
|
General and
administrative expenses(including share-based
compensation
expense of US$88 and nil for the
period ended March 31, 2013 and 2012,
respectively)
|
|
(2,718)
|
|
(4,150)
|
Total operating
expenses
|
|
(2,718)
|
|
(4,150)
|
Operating
income
|
|
7,410
|
|
8,815
|
Interest
income
|
|
36
|
|
8
|
Interest
expense
|
|
(6,479)
|
|
(7,450)
|
Changes in fair value
of warrant liabilities
|
|
(1,775)
|
|
(1,009)
|
Exchange
loss
|
|
(13)
|
|
(11)
|
Other income/(loss),
net
|
|
24
|
|
(143)
|
(Loss)/income
before income tax expenses
|
|
(797)
|
|
210
|
Income tax
expense
|
|
(888)
|
|
(1,306)
|
Net loss from
continuing operations
|
|
(1,685)
|
|
(1,096)
|
|
|
|
|
|
Net income from
discontinued operations
|
|
-
|
|
1,808
|
|
|
|
|
|
Net(loss)/income
|
|
(1,685)
|
|
712
|
|
|
|
|
|
Less:
|
|
|
|
|
Net loss
attributable to non-controlling interests
|
|
44
|
|
73
|
|
|
|
|
|
Net (loss)/income
attributable to China Hydroelectric Corporation
shareholders
|
|
(1,641)
|
|
785
|
- Continuing
operations
|
|
(1,641)
|
|
(1,023)
|
- Discontinued
operations
|
|
-
|
|
1,808
|
|
|
|
|
|
Other Comprehensive
income (loss), net of taxes
|
|
|
|
|
Foreign
currency translation adjustments
|
|
1,041
|
|
(389)
|
Comprehensive
(loss) income
|
|
(644)
|
|
323
|
Less:
comprehensive loss attributable to non-controlling
interest
|
|
50
|
|
87
|
Comprehensive
(loss) income attributable to CHC shareholders
|
|
(594)
|
|
410
|
|
|
|
|
|
GAAP net (loss)
income per ADS – basic and diluted
|
|
(0.03)
|
|
0.01
|
From continuing
operation
|
|
(0.03)
|
|
(0.02)
|
From discontinued
operation
|
|
0.00
|
|
0.03
|
|
|
|
|
|
GAAP net (loss)
income per share – basic and diluted
|
|
(0.01)
|
|
0.00
|
From continuing
operation
|
|
(0.01)
|
|
(0.01)
|
From discontinued
operation
|
|
0.00
|
|
0.01
|
|
|
|
|
|
Weighted average
American Depository Shares – basic and diluted
|
|
54,001,716
|
|
53,996,366
|
Weighted average
ordinary shares – basic and diluted
|
|
162,005,149
|
|
161,989,097
|
|
|
|
|
|
CHINA HYDROELECTRIC
CORPORATION
|
GAAP NET
(LOSS)/INCOME TO NON-GAAP NET INCOME RECONCILIATION
|
(In US$
000's)
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2013
|
|
March 31, 2012
|
Net (loss)/income
attributable to CHC shareholders
|
|
(1,641)
|
|
785
|
Non-GAAP
adjustments:
|
|
|
|
|
Exchange
loss
|
|
13
|
|
11
|
Stock based
compensation expense(1)
|
|
88
|
|
-
|
Change in fair value
of warrant liabilities(2)
|
|
1,775
|
|
1,009
|
Non-GAAP net
/income
|
|
235
|
|
1,805
|
|
|
|
|
|
Non-GAAP net income
per ADS – basic and diluted (3)
|
|
0.00
|
|
0.03
|
From continuing
operation
|
|
0.00
|
|
0.00
|
From discontinued
operation
|
|
0.00
|
|
0.03
|
Non-GAAP net income
per ordinary share – basic and diluted
|
|
0.00
|
|
0.01
|
From continuing
operation
|
|
0.00
|
|
0.00
|
From discontinued
operation
|
|
0.00
|
|
0.01
|
|
|
|
|
|
Weighted average
American depository shares – basic and diluted
|
|
54,001,716
|
|
53,996,366
|
Weighted average
ordinary shares – basic and diluted
|
|
162,005,149
|
|
161,989,097
|
|
|
|
|
|
(1)
Stock-Based Compensation Related Items: We provide non-GAAP
information relative to our expense for stock-based compensation.
We include stock-based compensation expense in our GAAP financial
measures in accordance with Financial Accounting Standards Board
("FASB") Accounting Standards Codification ("ASC") Topic 718,
Compensation – Stock Compensation ("FASB ASC Topic 718"). Because
of varying available valuation methodologies, subjective
assumptions and the variety of award types, which affect the
calculations of stock-based compensation, we believe that the
exclusion of stock-based compensation allows for more accurate
comparisons of our operating results to our peer companies.
Stock-based compensation is very different from other forms of
compensation. The expense associated with granting an employee a
stock option is spread over multiple years unlike other
compensation expenses which are more proximate to the time of award
or payment. For example, we may recognize expense on a stock option
in a year in which the stock option is significantly underwater and
typically would not be exercised or would not generate any
compensation for the employee. The expense associated with an award
of a stock option for 1,000 shares of stock by us in one quarter,
for example may have a very different expense than an award of an
identical number of shares in a different quarter. Further, the
expense recognized by us for such an option may be very different
than the expense recognized by other companies for the award of a
comparable option. This makes it difficult to assess our operating
performance relative to our competitors. Because of these unique
characteristics of stock-based compensation, management excludes
these expenses when analyzing the organization's business
performance. We also believe that presentation of such non-GAAP
information is important to enable readers of our financial
statements to compare current period results with future
periods.
|
|
(2)
Warrant liabilities Related Items: We provide non-GAAP
information relative to the change in fair value of warrant
liabilities. We include the change in fair value of warrant
liabilities in our GAAP financial measures in accordance with
Financial Accounting Standards Board ("FASB") Accounting Standards
Codification ("ASC") Topic 815, Derivatives and Hedging ("FASB ASC
Topic 815"). Because of varying available valuation methodologies,
and subjective assumptions, which affect the calculations of the
change in fair value of warrant liabilities, we believe that the
exclusion of the change in fair value of warrant liabilities allows
for more accurate comparisons of our operating results to our peer
companies. Because of the characteristics of warrant liabilities,
management excludes the change in fair value when analyzing the
organization's business performance. We also believe that
presentation of such non-GAAP information is important to enable
readers of our financial statements to compare current period
results with future periods.
|
|
|
|
(3)
The Company's American depository shares ("ADS") convert to
ordinary shares at a rate of one ADS to three ordinary
shares.
|
|
|
|
(4)
All the reconciliation items are attributed to China
Hydroelectric Corporation Shareholders.
|
CHINA HYDROELECTRIC
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In US$
000's)
|
|
|
As of March 31,
|
|
As of December 31,
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
9,180
|
|
7,967
|
Restricted
cash
|
6,261
|
|
5,171
|
Accounts receivable
(net of allowance for doubtful accounts of nil as of March 31, 2013
and December 31, 2012)
|
8,734
|
|
5,772
|
Notes
receivable
|
1,068
|
|
1,877
|
Deferred tax
assets
|
1,626
|
|
1,659
|
Amounts due from
related parties
|
86
|
|
86
|
Prepayments and other
current assets
|
9,404
|
|
14,150
|
Total current
assets
|
36,359
|
|
36,682
|
|
|
|
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
544,602
|
|
548,511
|
Land use right,
net
|
48,481
|
|
48,640
|
Intangible assets,
net
|
4,631
|
|
4,660
|
Goodwill
|
112,779
|
|
112,481
|
Deferred tax
assets
|
1,470
|
|
1,329
|
Other non-current
assets
|
1,952
|
|
2,013
|
Total non-current
assets
|
713,915
|
|
717,634
|
|
|
|
|
TOTAL
ASSETS
|
750,274
|
|
754,316
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
2,160
|
|
3,124
|
Short-term
loans
|
21,677
|
|
21,676
|
Current portion of
long-term loans
|
36,428
|
|
35,537
|
Amounts due to
related parties
|
12,947
|
|
12,705
|
Accrued expenses and
other current liabilities
|
40,104
|
|
43,825
|
Warrant
liabilities
|
2,614
|
|
839
|
Total current
liabilities
|
115,930
|
|
117,706
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Long term
loans
|
211,460
|
|
212,970
|
Deferred tax
liabilities
|
23,938
|
|
24,345
|
Other non-current
liabilities
|
6,987
|
|
6,780
|
Total non-current
liabilities
|
242,385
|
|
244,095
|
|
|
|
|
TOTAL
LIABILITIES
|
358,315
|
|
361,801
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Ordinary shares (par
value US$0.001 per share, 400,000,000 shares authorized as of March
31, 2013 and December 31, 2012; 162,075,007 and 161,989,097 shares
issued and outstanding as of March 31, 2013 and December 31, 2012,
respectively)
|
162
|
|
162
|
Additional paid in
capital
|
509,753
|
|
509,665
|
Accumulated other
comprehensive income
|
42,644
|
|
41,597
|
Accumulated
deficit
|
(161,113)
|
|
(159,472)
|
Total China
Hydroelectric Corporation shareholders' equity
|
391,446
|
|
391,952
|
Non-controlling
interests
|
513
|
|
563
|
TOTAL
SHAREHOLDER'S EQUITY
|
391,959
|
|
392,515
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
750,274
|
|
754,316
|
CHINA HYDROELECTRIC
CORPORATION
|
NET (LOSS)/INCOME
TO ADJUSTED EBITDA RECONCILIATION
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2013
|
|
March 31, 2012
|
Net (loss)/ income
attributable to China Hydroelectric
Corporation
shareholders
|
|
(1,641)
|
|
785
|
Interest expenses,
net
|
|
6,242
|
|
7,243
|
Other non-cash
charges, including exchange loss, change in fair
value of warrant liabilities, and stock-based compensation
expense
|
|
1,876
|
|
1,020
|
Income tax
expenses
|
|
815
|
|
1,304
|
Interest expenses,
income tax expenses, depreciation and amortization related to
discontinued operations
|
|
-
|
|
1,014
|
Depreciation of
property, plant and equipment and amortization of land use rights
and intangible assets
|
|
5,510
|
|
5,488
|
EBITDA, attributable
to China Hydroelectric Corporation shareholders, as
adjusted
|
|
12,802
|
|
16,854
|
|
|
|
|
|
EBITDA margin
attributable to China Hydroelectric Corporation shareholders, as
adjusted
|
|
70%
|
|
75%
|
|
|
|
|
|
Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization and certain non-cash charges including exchange loss,
change in fair value of warrant liability, stock-based
compensation. We believe that EBITDA is widely used by other
companies in the power industry and may be useful to investors as a
measure of the Company's financial performance. Given the
significant investments that we have made in net property, plant
and equipment, depreciation and amortization expense comprises a
meaningful portion of the Company's cost structure. We believe that
EBITDA will provide a useful tool for comparability between periods
because it eliminates depreciation and amortization expenses
attributable to capital expenditures and business acquisitions. The
presentation of EBITDA should not be construed as an indication
that the Company's future results will be unaffected by other
charges and gains we consider to be outside the ordinary course of
our business.
|
|
All the
reconciliation items are attributed to China Hydroelectric
Corporation Shareholders.
|
|
EBITDA margin
attributable to China Hydroelectric Corporation shareholders, as
adjusted, is calculated by dividing the period's EBITDA by net
revenue including discontinued operations.
|
CHINA HYDROELECTRIC
CORPORATION
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In US$
000's)
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2013
|
|
March 31,
2012
|
Cash flows from
operating activities:
|
|
|
|
|
Net
(loss)/income
|
|
(1,685)
|
|
712
|
Adjustments to
reconcile net (loss) income to net cash generated from
operating
activities:
|
|
|
|
|
Depreciation
of property, plant and equipment and amortization of
land use rights and
intangible assets
|
|
5,800
|
|
5,979
|
Deferred income taxes
|
|
39
|
|
(58)
|
Changes in
fair value of warrant liabilities
|
|
1,775
|
|
1,009
|
Amortization
of debt issuance costs
|
|
190
|
|
15
|
Authorization
of government grant
|
|
(1)
|
|
(1)
|
Stock-based
compensation expense
|
|
88
|
|
-
|
Loss from
disposal of property, plant and equipment
|
|
25
|
|
315
|
Exchange
loss
|
|
13
|
|
11
|
Gain from
disposal of discontinued operation
|
|
-
|
|
(1,383)
|
Net pension
cost recognized
|
|
-
|
|
(60)
|
Changes in
operating assets and liabilities
|
|
|
|
|
Accounts receivable
|
|
(2,944)
|
|
(9,696)
|
Notes receivable
|
|
812
|
|
-
|
Prepayments and other current assets
|
|
(307)
|
|
(1,721)
|
Other non-current assets
|
|
(757)
|
|
148
|
Accounts payable
|
|
(364)
|
|
(320)
|
Amounts due to related
parties
|
|
208
|
|
-
|
Other non-current liabilities
|
|
208
|
|
(577)
|
Accrued expenses and other current liabilities
|
|
(3,270)
|
|
(2,361)
|
Net cash used in
operating activities
|
|
(170)
|
|
(7,988)
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
|
-
|
|
(1,191)
|
Proceeds from
the disposal of subsidiaries, net of tax
|
|
4,572
|
|
-
|
Acquisition of
property, plant and equipment
|
|
(620)
|
|
(2,875)
|
Proceeds from
disposal of property, plant and equipment
|
|
13
|
|
117
|
Payment to
contractors for construction projects
|
|
(55)
|
|
(973)
|
Net cash provided
by/(used in) investing activities
|
|
3,910
|
|
(4,922)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
short-term loans
|
|
1,850
|
|
4,088
|
Proceeds from
long-term loans
|
|
777
|
|
1,588
|
Proceeds
from loans from related parties
|
|
-
|
|
159
|
Proceeds
from loans from third parties
|
|
494
|
|
6,352
|
Repayment
of loans from third parties
|
|
(563)
|
|
-
|
Repayment
of short-term loans
|
|
(2,457)
|
|
(1,383)
|
Repayment
of long-term loans
|
|
(1,513)
|
|
(2,064)
|
Restricted
cash
|
|
(1,090)
|
|
-
|
Net cash (used
in)/provided by financing activities
|
|
(2,502)
|
|
8,740
|
Net increase
(decrease) in cash and cash equivalents
|
|
1,238
|
|
(4,170)
|
Effect of changes in
exchange rate on cash and cash equivalents
|
|
(25)
|
|
(16)
|
Cash and cash
equivalents at the beginning of the period
|
|
7,967
|
|
8,402
|
Cash and cash
equivalents at the end of the period
|
|
9,180
|
|
4,216
|
SOURCE China Hydroelectric Corporation