RENO, Nev., May 5 /PRNewswire-FirstCall/ -- Ormat
Technologies, Inc. (NYSE: ORA) today announced financial results
for the first quarter 2010.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO)
For the three months ended March 31,
2010, total revenues were $82.7
million, compared to $99.3
million in the first quarter of 2009. Revenues from
the Electricity Segment rose 6.5% from the first quarter of last
year, and, as previously noted, revenues from the Product Segment
were down from last year’s exceptional highs.
For the quarter, the Company reported net income of $1.8 million or $0.04 per share (basic and diluted), compared to
net income of $14.5 million, or
$0.32 per share (basic and diluted),
for the same period a year ago. The decrease is principally
attributable to a reduction in our Product Segment revenues and
gross margins, and a decrease in our Electricity Segment gross
margins.
Commenting on the results, Dita Bronicki, Chief Executive
Officer, stated: “Electricity Segment revenues increased 6.5% as a
result of an increase in generation to approximately 918,000 MWh
from 876,000 MWh last year. The increase in generation is the
result of additional capacity and solid performance from all
facilities other than North
Brawley and Puna.
"From an earnings perspective, we expected the first half of the
year to be challenging due to a decrease from very high revenues
and gross margins in our Product Segment in 2009, lower revenues
from Puna and lower revenues and high operating costs from
North Brawley. Based on the
progress that was made in repair work in Puna, we expect revenues
to improve in the second quarter. In North Brawley, we expect
generation to ramp up towards the end of the year.
“While these known challenges impacted our financials, our
growth strategy remains the same. Last week we announced that we
made significant progress in our negotiations to revise the Energy
Sales Contract (ESC) at the Sarulla project in Indonesia. We have agreed on a levelized
power price of $68 per MWh, and we
expect to sign an amended ESC within the next three months.
"Additionally, we acquired several properties that we believe
present strong prospects for growth. The Hot Sulphur Springs
acquisition closed in mid-March, allowing us to move forward with
development of the Tuscarora
project. We also leased new land for development in the U.S.
that is near existing prospects, which brings our total leases for
exploration to approximately 300,000 acres. Earlier in the quarter,
we signed a letter of intent to increase the capacity of the
Olkaria complex in Kenya by up to
52 MW.”
Electricity revenues for the first quarter of 2010 were
$66.1 million, an increase of 6.5%
from $62.1 million in the first
quarter of 2009. Excluding Puna, we saw an increase in
electricity generation at all of our power plants. The single most
significant contributor to our electricity generation was the
placement in service of our North
Brawley plant in January 2010.
The increase in our electricity segment revenues is also
attributable to a slight increase in the average revenue rate of
our electricity portfolio from $71
per MWh in the first quarter of 2009 to $72 per MWh in the first quarter of 2010.
Revenues from the Product Segment for the three-month period
ended March 31, 2010 were
$16.5 million, compared to
$37.3 million in 2009. As we noted in
our 2010 guidance, we expect this reduction to affect revenues from
our Product Segment throughout this year.
Loss from continuing operations for the first quarter of 2010
was $2.0 million, compared to
income from continuing operations of $14.4 million in the same period in 2009.
Such decrease in income from continuing operations is principally
attributable to the decrease in our gross margins resulting from
both a decrease in our Product Segment revenues and the high costs
associated with the operation of the North Brawley power plant.
Adjusted EBITDA for the first quarter of 2010 was $32.1 million, as compared to $37.4 million in the same quarter last year.
Adjusted EBITDA includes consolidated EBITDA and the Company’s
share in the interest, taxes, depreciation and amortization related
to the Company's unconsolidated 50% interest in the Mammoth complex
in California. As further
described in “Reconciliation of EBITDA and Adjusted EBITDA and
Additional Cash Flows Information” below, we changed the method for
calculating EBITDA and adjusted EBITDA beginning in the third
quarter of 2009.
As of March 31, 2010, our cash and
cash equivalents were $43.1 and we have available committed
lines of credit with commercial banks aggregating $362.5 million, of which $141.6 million is unused.
On May 5, 2010, Ormat's Board of
Directors approved the payment of a quarterly dividend of
$0.05 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 25, 2010 to
shareholders of record as of the close of business on May 18, 2010. The Company expects to pay a
dividend of $0.05 per share in the
next two quarters.
Commenting on the outlook for 2010, Ms. Bronicki said, "We
continue to expect 2010 Electricity Segment revenues of
$275 million to $285 million. We also
expect an additional $9 million of
revenues from our share of electricity revenues generated by a
subsidiary, which is accounted for under the equity method. 2010
Product Segment revenues are expected to be between
$75 million and $85 million."
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 Thursday, May 6, 2010. 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 and Presentation 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 a.m. EDT on
May 6, 2010 through 11:59 p.m. EDT, May 13,
2010. Please call: (888) 562-3356 (U.S. and
Canada) or (973) 582-2700
(International) and enter the code 70933863.
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 engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1300 MW of gross capacity.
Ormat's current generating portfolio includes the following
geothermal and recovered energy-based power plants: in the United States - Brady, North Brawley, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG
1, OREG 2 and Peetz; 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 March
8, 2010.
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
Contact:
|
Investor Relations
Contact:
|
|
Dita
Bronicki
|
Todd Fromer /
Marybeth Csaby
|
|
CEO
|
KCSA Strategic
Communications
|
|
775-356-9029
|
212-896-1215/212-896-1236
|
|
dbronicki@ormat.com
|
tfromer@kcsa.com mcsaby@kcsa.com
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Operations
For the Three-Month Periods
Ended March 31, 2010 and
2009
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
66,105
|
|
$
62,060
|
|
|
Product
|
16,549
|
|
37,251
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
82,654
|
|
99,311
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
Electricity
|
54,523
|
|
43,686
|
|
|
Product
|
12,437
|
|
24,243
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues
|
66,960
|
|
67,929
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
15,694
|
|
31,382
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
expenses
|
3,267
|
|
801
|
|
|
Selling and marketing
expenses
|
3,202
|
|
4,301
|
|
|
General and administrative
expenses
|
7,020
|
|
7,535
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
2,205
|
|
18,745
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
Interest income
|
197
|
|
152
|
|
|
Interest expense, net
|
(9,714)
|
|
(3,290)
|
|
|
Foreign currency translation and
transaction gains (losses)
|
434
|
|
(2,393)
|
|
|
Income attributable to sale of tax
benefits
|
2,139
|
|
4,168
|
|
|
Other non-operating loss,
net
|
(359)
|
|
(150)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations before income taxes
|
|
|
|
|
|
|
|
and equity in income of
investees
|
(5,098)
|
|
17,232
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision)
|
2,557
|
|
(3,429)
|
|
Equity in income of investees,
net
|
546
|
|
550
|
|
|
|
|
Income (loss) from continuing
operations
|
(1,995)
|
|
14,353
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
Income from discontinued operations,
net of related tax of $6 and $60
|
14
|
|
153
|
|
|
|
Gain on sale of a subsidiary in New
Zealand, net of related tax of $2,570
|
3,766
|
|
-
|
|
|
|
|
Net income
|
1,785
|
|
14,506
|
|
Net loss attributable to
noncontrolling interest
|
53
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the
Company's stockholders
|
$
1,838
|
|
$
14,585
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable
to the Company's stockholders - basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$
(0.04)
|
|
$
0.32
|
|
|
|
|
Income from discontinued operations
|
0.08
|
|
-
|
|
|
|
|
Net income
|
$
0.04
|
|
$
0.32
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used
in computation of earnings (loss)
|
|
|
|
|
|
|
per share attributable to
the Company's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
45,431
|
|
45,353
|
|
|
|
|
Diluted
|
45,457
|
|
45,405
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc.
and Subsidiaries
Condensed Consolidated Balance
Sheets
As of March 31, 2010 and December 31,
2009
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
43,111
|
|
$
46,307
|
|
|
Restricted cash, cash equivalents and
marketable securities
|
52,266
|
|
40,955
|
|
|
Receivables:
|
|
|
|
|
|
|
Trade
|
49,904
|
|
53,423
|
|
|
|
Related entities
|
647
|
|
441
|
|
|
|
Other
|
9,629
|
|
7,884
|
|
|
Due from Parent
|
709
|
|
422
|
|
|
Inventories
|
20,014
|
|
15,486
|
|
|
Costs and estimated earnings in excess
of billings on uncompleted contracts
|
3,112
|
|
14,640
|
|
|
Deferred income taxes
|
3,860
|
|
3,617
|
|
|
Prepaid expenses and other
|
9,914
|
|
12,080
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
193,166
|
|
195,255
|
|
Long-term marketable
securities
|
1,304
|
|
652
|
|
Restricted cash, cash equivalents and
marketable securities
|
1,764
|
|
2,512
|
|
Unconsolidated investments
|
29,104
|
|
35,527
|
|
Deposits and other
|
19,259
|
|
18,314
|
|
Deferred charges
|
30,466
|
|
22,532
|
|
Property, plant and equipment,
net
|
1,320,754
|
|
998,693
|
|
Construction-in-process
|
239,505
|
|
518,595
|
|
Deferred financing and lease costs,
net
|
20,175
|
|
20,940
|
|
Intangible assets
|
41,203
|
|
41,981
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 1,896,700
|
|
$
1,855,001
|
|
Liabilities and Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
$
87,511
|
|
$
73,993
|
|
|
Billings in excess of costs and
estimated earnings on uncompleted contracts
|
7,681
|
|
3,351
|
|
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and non-recourse
|
16,055
|
|
19,191
|
|
|
|
Full recourse
|
12,916
|
|
12,823
|
|
|
|
Senior secured notes
(non-recourse)
|
20,227
|
|
20,227
|
|
|
Due to Parent, including current
portion of notes payable to Parent
|
10,198
|
|
10,018
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
154,588
|
|
139,603
|
|
Long-term debt, net of current
portion:
|
|
|
|
|
|
Limited and non-recourse
|
128,199
|
|
129,152
|
|
|
Full recourse
|
75,695
|
|
77,177
|
|
|
Revolving credit lines with banks
(full recourse)
|
158,500
|
|
134,000
|
|
|
Senior secured notes
(non-recourse)
|
231,872
|
|
231,872
|
|
Liability associated with sale of
equity interests
|
72,454
|
|
73,246
|
|
Deferred lease income
|
72,590
|
|
72,867
|
|
Deferred income taxes
|
52,130
|
|
44,530
|
|
Liability for unrecognized tax
benefits
|
5,184
|
|
4,931
|
|
Liabilities for severance
pay
|
19,477
|
|
18,332
|
|
Asset retirement obligation
|
14,350
|
|
14,238
|
|
Other long-term liabilities
|
2,297
|
|
3,358
|
|
|
|
|
Total liabilities
|
987,336
|
|
943,306
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
The Company's stockholders'
equity:
|
|
|
|
|
|
|
Common stock
|
46
|
|
46
|
|
|
|
Additional paid-in capital
|
710,770
|
|
709,354
|
|
|
|
Retained earnings
|
193,333
|
|
196,950
|
|
|
|
Accumulated other comprehensive
income
|
545
|
|
622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
904,694
|
|
906,972
|
|
|
Noncontrolling interest
|
4,670
|
|
4,723
|
|
|
|
|
Total equity
|
909,364
|
|
911,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$ 1,896,700
|
|
$
1,855,001
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA and Additional
Cash Flows Information
(Unaudited)
We calculate EBITDA as net income before interest, taxes,
depreciation and amortization. We calculate adjusted EBITDA to
include 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 or liquidity under accounting principles generally
accepted in the United States of
America and should not be considered as an alternative to
cash flow from operating activities or as a measure of liquidity or
an alternative to net earnings as indicators of our operating
performance or any other measures of performance derived in
accordance with accounting principles generally accepted in
the United States of America.
EBITDA and adjusted EBITDA are presented because we believe they
are frequently used by securities analysts, investors and other
interested parties in the evaluation of a Company's ability to
service and/or incur debt. However, other companies in our industry
may calculate EBITDA and adjusted EBITDA differently than we do.
The following table reconciles net cash provided by operating
activities to EBITDA and adjusted EBITDA, for the three-month
periods ended March 31 2010, and
2009:
|
|
Three Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
$
48,240
|
|
$
42,534
|
|
Adjusted for:
|
|
|
|
|
|
Interest expense, net (excluding
amortization
|
|
|
|
|
|
of deferred
financing costs)
|
9,021
|
|
2,391
|
|
|
Interest income
|
(197)
|
|
(152)
|
|
|
Income tax provision
|
19
|
|
3,489
|
|
|
Adjustments to reconcile net income to
net cash
|
|
|
|
|
|
provided by operating
activities (excluding
|
|
|
|
|
|
depreciation and
amortization)
|
(26,006)
|
|
(11,896)
|
|
|
|
|
|
|
|
EBITDA
|
31,077
|
|
36,366
|
|
Interest, taxes, depreciation and
amortization attributable
|
|
|
|
|
|
to the Company's equity in
Mammoth-Pacific L.P.
|
973
|
|
989
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
32,050
|
|
$
37,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
$
(64,981)
|
|
$
(91,225)
|
|
|
|
|
|
|
|
Net cash provided by financing
activities
|
$
13,545
|
|
$
56,986
|
|
|
|
|
|
|
|
|
|
|
|
|
We previously calculated EBITDA to exclude equity income of
investees and other non-operating expense (income) and adjusted
EBITDA to exclude other non-operating expense (income). In
addition, we now reconcile EBITDA and adjusted EBITDA to our net
cash provided by operating activities for each of the periods
shown, rather than net income amounts we have used for
reconciliation in prior periods. Accordingly, the information in
the tables below is not directly comparable to similar
reconciliation information we have reported for prior periods not
reflected in the tables below. The change in the way we now
calculate EBITDA and adjusted EBITDA results in higher EBITDA and
adjusted EBITDA for each of the periods shown above than we would
have reported using our prior method for calculating EBITDA and
adjusted EBITDA. The following table shows, for each period
reported above, the differences in our reported EBITDA and adjusted
EBITDA resulting from the change in our method for computing these
amounts.
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
EBITDA, as previously
calculated
|
$
24,537
|
|
$
34,358
|
|
Adjusted for inclusion:
|
|
|
|
|
|
Equity in income of
investees
|
546
|
|
550
|
|
|
Other non-operating income
(expense)
|
5,994
|
|
1,458
|
|
|
|
|
|
|
|
EBITDA, as currently
calculated
|
$
31,077
|
|
$
36,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, as previously
calculated
|
$
26,056
|
|
$
35,897
|
|
Adjusted for inclusion -
|
|
|
|
|
|
Other non-operating income
(expense)
|
5,994
|
|
1,458
|
|
|
|
|
|
|
|
Adjusted EBITDA, as currently
calculated
|
$
32,050
|
|
$
37,355
|
|
|
|
|
|
|
|
This comparative non-GAAP information is provided to assist
investors in evaluating the impact of the change in the way we
calculate these amounts in performing their financial analysis of
our operations for the periods presented. This information
should not be considered in isolation or as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP or other non-GAAP financial measures.
SOURCE Ormat Technologies, Inc.