ORA Ormat Technologies Inc

Q1 net income increased 45.2% to $14.5 million; Q1 total revenues increased 44.0% to $99.9 million with record Products Segment revenues of $37.3 million. RENO, Nev., May 11 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE:ORA) today announced financial results for the first quarter 2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO ) For the three month period ended March 31, 2009, total revenues were $99.9 million, an increase of 44.0% from $69.4 million in the first quarter of 2008, consisting of a $3.1 million increase in revenues from the Electricity Segment, and a $27.4 million increase in revenues from the Products Segment. For the quarter, the Company reported net income of $14.5 million or $0.32 per share (basic and diluted), as compared to net income of $10.0 million, or $0.24 per share (basic and diluted), for the same period a year ago. The increase in net income is primarily attributable to an increase in sales within the Products Segment primarily derived from EPC contracts for the construction of two large geothermal projects and additional energy generated year-over-year in our Electricity Segment. Commenting on the quarter's results, Dita Bronicki, Chief Executive Officer of Ormat, stated: "Growth continued during the quarter with improvements in both our revenues and net income. Revenue from our Products Segment accounted for a significant portion of this quarter's growth. Revenues from our Products Segment are expected to continue to grow throughout the year with an expected increase of 20% to 30% compared to last year. An increase in generation in our Electricity Segment compared to last year also contributed to our record results but its impact was not fully reflected, primarily because of lower energy rates at our Puna facility, the only facility which is sensitive to oil prices. While North Brawley has not yet reached commercial operation, the 35 MW expansion of our Olkaria III power plant in Kenya, is operating as planned. "In March 2009, we received the first $90.0 million out of a $105 million project financing loan for the Olkaria III power plants. This additional capital, when combined with operating cash flow and $241.1 million of unutilized secured lines of credit with banks, will fund our growth plans that are expected to add 72 MW to 84 MW over the next two years, and to include approximately $30 million for exploration in 2009 alone, to support projects beyond 2010." Electricity revenues for the first quarter of 2009 were $62.6 million, an increase of 5.2% as compared to $59.5 million in the first quarter of 2008. The increase in electricity revenues is primarily attributable to a net increase in the U.S. and international generation to 889,693 MWh for the quarter, up from 732,266 MWh in the same period of 2008, an increase of 21.5%. Revenues, however, increased at a lower percentage due to the decline in the energy rate in Puna and the expiration of the "adder" payment in Heber 1. Revenues from the Products Segment for the three-month period ended March 31, 2009 were $37.3 million, compared to $9.9 million in 2008. The increase in the Products Segment revenues was primarily derived from EPC contracts for the construction of two large geothermal projects. Adjusted EBITDA for the first quarter of 2009 was $35.9 million, as compared to $27.5 million in the same quarter last year. Adjusted EBITDA includes operating income and depreciation and amortization totaling $1.5 million for each of the quarters ended March 31, 2009 and 2008 related to the Company's unconsolidated investment interest of 50% in the Mammoth complex in California. The reconciliation of GAAP net income to Adjusted EBITDA is set forth below in this release. Cash and cash equivalents as of March 31, 2009 increased to $42.7 million from $34.4 million as of December 31, 2008. In addition, we have unutilized committed bank lines of credits aggregating $241.1 million. On May 8, 2009, Ormat's Board of Directors approved the payment of a quarterly cash dividend of $0.06 per share pursuant to the Company's dividend policy, which targets an annual payout ratio of at least 20% of the Company's net income. The dividend will be paid on May 27, 2009 to shareholders of record as of the close of business on May 20, 2009. The Company expects to pay a dividend of $0.06 per share in the next two quarters. Commenting on the outlook for 2009, Ms. Bronicki said, "With regard to our Electricity Segment, due to the delays in the commercial operation of North Brawley we expect electricity revenues for 2009 to be between $265 million and $275 million. We also expect additional revenues of approximately $9 million from our share of electricity revenues generated by the Mammoth complex, the investment in which is accounted for under the equity method. With respect to our Products Segment, we currently expect that our 2009 revenue will be between $110 million and $120 million." Ms. Bronicki concluded, "These excellent results reflect the strong fundamentals of our development and enhancement activities as well as customer support for our proven technology. Our already strong capital base positions us well for the future as we continue to invest in our growth." 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. U.S. EDT on Monday, May 11, 2009. The call will be available as a live, listen-only webcast at http://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 Event Calendar in the Investor Relations section of Ormat's website. A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. A replay will be available from 11:00 a.m. EDT on May 11, 2009 through 11:59 p.m. EDT, May 18, 2009. Please call: (800) 642 1687 (U.S. and Canada) or (706) 645 9291 (International) and enter the code 96561575. 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 products and systems are covered by 75 U.S. patents. Ormat has built over approximately 1,200 MW of plants half for its own account and half as supplies to utilities and developers. Ormat current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2 and Peetz; in Guatemala - Zunil and Amatitlan; in Kenya - Olkaria; in Nicaragua - Momotombo and in New Zealand - GDL. 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 2, 2009 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-month periods Ended March 31, 2009 and 2008 (Unaudited) Three Months Ended March 31, ------------------- 2009 2008 (1) ---- -------- (in thousands, except per share amounts) Revenues: Electricity $62,638 $59,519 Products 37,251 9,868 ------ ----- Total revenues 99,889 69,387 ------ ------ Cost of revenues: Electricity 43,884 38,676 Products 24,243 8,050 ------ ----- Total cost of revenues 68,127 46,726 ------ ------ Gross margin 31,762 22,661 Operating expenses: Research and development expenses 801 696 Selling and marketing expenses 4,301 3,519 General and administrative expenses 7,535 6,027 ----- ----- Operating income 19,125 12,419 Other income (expense): Interest income 152 1,046 Interest expense (3,290) (4,786) Foreign currency translation and transaction (losses (2,560) (183) Impairment of auction rate securities (280) (328) Income attributable to sale of equity interests 4,168 3,316 Other non-operating income, net 130 40 --- -- Income before income taxes and equity in income of investees 17,445 11,524 Income tax provision (3,489) (2,071) Equity in income of investees 550 539 --- --- Net income 14,506 9,992 Net loss attributable to noncontrolling interest 79 72 -- -- Net income attributable to the Company's stockholders $14,585 $10,064 ======= ======= Earnings per share attributable to the Company's stockholders - basic and diluted $0.32 $0.24 ===== ===== Weighted average number of shares used in computation of earnings per share: Basic 45,353 42,163 ====== ====== Diluted 45,405 42,271 ====== ====== (1) Amounts have been reclassified to reflect the implementation of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 151. Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2009 and December 31, 2008 (Unaudited) March 31, December 31, 2009 2008 ---- ---- (in thousands) Assets Current assets: Cash and cash equivalent $42,711 $34,393 Restricted cash, cash equivalents and marketable securities 41,673 24,439 Receivables: Trade 57,393 49,839 Related entity 546 338 Other 9,216 15,654 Due to Parent 2,068 1,085 Inventories 12,724 13,724 Costs and estimated earnings in excess of billings on uncompleted contracts 12,849 6,982 Deferred income taxes 4,423 3,003 Prepaid expenses and other 14,303 16,222 ------ ------ Total current assets 197,906 165,679 Long-term marketable securities 1,873 1,994 Restricted cash, cash equivalents and marketable securities 2,792 2,951 Unconsolidated investments 32,743 30,559 Deposits and other 16,006 16,876 Deferred income taxes 14,315 13,965 Property, plant and equipment, net 975,997 958,186 Construction-in-process 422,536 386,501 Deferred financing and lease costs, net 19,969 19,240 Intangible assets, net 44,057 44,853 ------ ------ Total assets $1,728,194 $1,640,804 ========== ========== Liabilities and Equity Current liabilities: Accounts payable and accrued expenses $100,171 $103,336 Billings in excess of costs and estimated earnings on uncompleted contracts 30,245 15,670 Current portion of long-term debt: Limited and non-recourse 11,513 6,676 Senior secured notes (non-recourse) 20,088 20,085 Due to Parent, including current portion of notes payable to Parent 9,732 16,616 ----- ------ Total current liabilities 171,749 162,383 Long-term debt, net of current portion: Limited and non-recourse 91,345 7,814 Revolving credit lines with banks (full recourse) 80,000 100,000 Senior secured notes (non-recourse) 252,099 252,060 Notes payable to Parent, net of current portion 9,600 9,600 Liability associated with sale of equity interests 111,089 113,327 Deferred lease income 74,338 74,427 Deferred income taxes 38,351 33,231 Liability for unrecognized tax benefits 3,657 3,425 Liabilities for severance pay 16,303 17,640 Asset retirement obligation 13,696 13,438 ------ ------ Total liabilities 862,227 787,345 ------- ------- Equity: The Company's stockholders' equity: Common stock 45 45 Additional paid-in capital 702,567 701,273 Retained earnings 155,875 144,465 Accumulated other comprehensive income 528 645 --- --- 859,015 846,428 Noncontrolling interest 6,952 7,031 ----- ----- Total equity 865,967 853,459 ------- ------- Total liabilities and equity $1,728,194 $1,640,804 ========== ========== Ormat Technologies, Inc. and Subsidiaries Reconciliation of adjusted EBITDA (Unaudited) We calculate EBITDA as net income before interest, taxes, depreciation and amortization, equity income of investees and other non-operating expense (income). We calculate adjusted EBITDA to include operating income, depreciation and amortization, interest and taxes attributable to our equity investments in the Mammoth complex. EBITDA and adjusted EBITDA are not measurements of financial performance under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA and adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a Company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do. The following table reconciles net income to EBITDA and adjusted EBITDA, for the three-month periods ended March 31, 2009 and 2008: Three Months Ended March 31, ------------- 2009 2008 ---- ---- (in thousands) Net income $14,506 $9,992 Adjusted for: Equity in income of investees (550) (539) Interest expense, net (including amortization of deferred financing costs) 3,138 3,740 Other non-operating income (1,458) (2,845) Income tax provision 3,489 2,071 Depreciation and amortization 15,233 13,631 ------ ------ EBITDA 34,358 26,050 Equity in income of Mammoth-Pacific L.P. 550 539 Depreciation, amortization, interest and taxes attributable to the Company's equity in Mammoth-Pacific L.P. 989 919 --- --- Adjusted EBITDA $35,897 $27,508 ======= ======= Ormat Technologies Contact: Investor Relations Contact Dita Bronicki Todd Fromer / Marybeth Csaby CEO KCSA Strategic Communications 775-356-9029 212-896-1215 / 212-896-1236 / http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO http://photoarchive.ap.org/ DATASOURCE: Ormat Technologies, Inc. CONTACT: Dita Bronicki, CEO of Ormat Technologies, +1-775-356-9029, ; or Investor Relations, Todd Fromer, +1-212-896-1215, , or Marybeth Csaby, +1-212-896-1236, , both of KCSA Strategic Communications, for Ormat Technologies, Inc. Web Site: http://www.ormat.com/

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