RENO, Nev., Feb. 22, 2011 /PRNewswire/ -- Ormat Technologies,
Inc. (NYSE: ORA) today announced financial results for the fourth
quarter and full year ended December 31,
2010.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
The highlights for the year and recent
development:
- 15.5% increase in Electricity Segment revenues;
- Annual net income of $37.2
million, or $0.82 per
share;
- Completed the 15 MW Jersey Valley Plant in Northern Nevada and the 8 MW Puna
expansion;
- Raised approximately $250 million
in debt offering;
- Refinanced $24.9 million in tax
equity transaction for OPC power plants;
- Increased land position to 343,000 acres;
- Acquired the balance of the Mammoth complex; and
- Continued progress in greenfield development sites.
Commenting on the results, Dita Bronicki, Chief Executive
Officer of Ormat, stated: "The significant resources we have
invested in the acquisition, exploration and development of new
leases, as well as project enhancements, are reflected in the
steady growth of our total generation. This positively
impacted revenue in our Electricity Segment, which reached
$291.8 million, a 15.5% increase over
last year. We currently have ten projects in various stages
of construction and development that we expect will add
significantly to our generation and top-line growth through
2013."
"Looking to the longer-term, we continue to search for new
geothermal fields while keeping a careful eye on value. Lease
acquisition and greenfield development remain key to our long-term
objectives, and are supported by our ability to raise attractive
financing. Our land portfolio totals over 343,000 acres and
we have 15 projects in various stages of exploration. We raised
approximately $250 million in a bond
offering and we will continue to pursue the benefits of the
stimulus ARRA where eligible. In our product business we see some
results from our marketing efforts with new orders added to our
backlog and are optimistic that some of current negotiations will
mature into additional orders in the near future."
"The low output and high costs of North Brawley materially impacted our results
in 2010. However, we expect to see improvement, both in terms
of revenue and costs towards the end of 2011. North Brawley
capacity was recently increased to approximately 30 MW following
the addition of a new injection area and work to increase the
output of the power plant will continue in 2011."
The North Brawley power plant
was tested under U.S. GAAP guidance for impairment in the current
year due to the low output and the higher than expected operating
costs. Based on these indicators we tested North Brawley for recoverability by estimating
its future cash flows. The test for recoverability concluded that
no impairment existed at December 31,
2010. However, if we will not be able to bring the
project capacity to approximately 45 MW and the operating costs to
the level of our current projections, we will have to record a
material impairment of the investment in the power plant. We
are continuously assessing our progress in achieving these
objectives.
Financial Summary
Annual Results
For the year ended December 31,
2010, total revenues were $373.2
million, compared to $412.0
million for the year ended December
31, 2009. Electricity Segment revenues increased by
15.5% to $291.8 million up from
$252.6 million in the year ended
December 31, 2009. Total output
increased by almost 14.0% and the average revenue rate of the
Company's electricity portfolio increased slightly from
$77 per MWh in 2009 to $78 per MWh in 2010.
Product Segment revenues for the year ended December 31, 2010 were $81.4 million, compared to the exceptionally
strong revenue of $159.4 million in
the year ended December 31, 2009, a
decrease of 48.9%. This decrease in our product revenue is a result
of a decline in our Product Segment customer orders, which we have
previously discussed.
Net income for the year ended December
31, 2010 was $37.2 million, or
$0.82 per share of common stock
(diluted), compared to $68.6 million,
or $1.51 per share of common stock
(diluted), for the year ended December 31,
2009. The decrease in net income is principally attributable
to a decrease in the total gross margin due to the decrease in
product revenues and the increase in electricity cost of revenues
relating mainly to North Brawley,
which had an after-tax loss of approximately $15.2 million, or $0.33 per share, for the year, and to an increase
in interest expense, net. This was partially offset by an after-tax
capital gain of $22.4 million,
related to the acquisition of a controlling interest in the Mammoth
complex in California.
Adjusted EBITDA for the year ended December 31, 2010 was $164.3 million compared to $167.0 million for the year ended December 31, 2009. 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 until August
1, 2010, the date we acquired the remaining 50% interest.
The reconciliation of GAAP net cash provided by operating
activities to Adjusted EBITDA and additional cash flows information
is set forth below in this release.
Cash and cash equivalents as of December 31, 2010 increased
to $82.8 million from
$46.3 million as of
December 31, 2009. In addition, as of December 31, 2010, we have available committed
lines of credit with commercial banks aggregating $402.5 million, of which $149.1 million is unused.
On February 22, 2011, Ormat's
Board of Directors approved the payment of a quarterly cash
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, subject to Board
approval. The dividend will be paid on March 24, 2011, to shareholders of record as of
the close of business on March 15,
2011. The Company expects to pay a dividend of $0.04 per share in the next three quarters.
Commenting on the outlook for 2011, Ms. Bronicki said, "We
expect our 2011 Electricity Segment revenues to be between
$315 million and $325 million. With
regard to our Product Segment, we expect that our 2011 revenues
will be between $75 million and $85
million."
Fourth Quarter Results
For the three-month period ended December
31, 2010, total revenues were $92.8
million, compared to $94.2
million in the fourth quarter of 2009. Electricity Segment
revenues increased by 17.1% to $73.6
million up from $62.8 million
in the fourth quarter of 2009.
Product Segment revenues for the three-month period ended
December 31, 2010 were $19.3 million, compared to $31.4 million in the same period in 2009.
For the quarter, the Company reported net income of $4.5 million or $0.10 per share (diluted), compared to
$16.1 million, or $0.35 per share (diluted), for the same period in
2009.
Adjusted EBITDA for the fourth quarter of 2010 was $29.4 million, compared to $41.8 million for the same period 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 until August 1, 2010, the date we acquired the
remaining 50% interest. The reconciliation of GAAP net cash
provided by operating activities to Adjusted EBITDA and additional
cash flows information is set forth below in this release.
Conference Call Details
Ormat will host a conference call to discuss its financial
results and other matters discussed in this press release at
10:00 A.M. EST on Wednesday, February 23, 2011. The call will
be available as a live, listen-only webcast at www.ormat.com.
During the webcast, management will refer to slides that will be
posted on the web site. The slides and accompanying webcast can be
accessed through the Webcast & Presentations in the Investor
Relations section of Ormat's website.
Webcast will be available approximately 2 hours after the
conclusion of the live call. A replay will be available from
1 p.m. EST on February 23, 2011. Please call: (800)
642-1687 (U.S. and Canada) (706)
645-9291 (International) and enter the Reply code: 17704060
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, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna,
Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and Amatitlan; in
Kenya – Olkaria III; and, in
Nicaragua - Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts
and projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally relate to
Ormat's plans, objectives and expectations for future operations
and are based upon its management's current estimates and
projections of future results or trends. Actual future results may
differ materially from those projected as a result of certain risks
and uncertainties. For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on 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, Inc. and
Subsidiaries
|
|
Condensed Consolidated
Statements of Operations
|
|
For the Three and Twelve-Month
Periods Ended December 31, 2010 and 2009
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
(in
thousands, except per share amounts)
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Electricity
|
$
73,551
|
|
$
62,822
|
|
$
291,820
|
|
$
252,621
|
|
|
Product
|
19,282
|
|
31,352
|
|
81,410
|
|
159,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
92,833
|
|
94,174
|
|
373,230
|
|
412,010
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
Electricity
|
62,775
|
|
46,612
|
|
242,326
|
|
179,101
|
|
|
Product
|
11,961
|
|
25,185
|
|
53,277
|
|
112,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
74,736
|
|
71,797
|
|
295,603
|
|
291,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
18,097
|
|
22,377
|
|
77,627
|
|
120,459
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
expenses
|
1,987
|
|
3,351
|
|
10,120
|
|
10,502
|
|
|
Selling and marketing
expenses
|
4,226
|
|
3,675
|
|
13,447
|
|
14,584
|
|
|
General and administrative
expenses
|
7,646
|
|
6,858
|
|
27,442
|
|
26,412
|
|
|
Write-off of unsuccessful
exploration activities
|
-
|
|
-
|
|
3,050
|
|
2,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
4,238
|
|
8,493
|
|
23,568
|
|
66,594
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
(89)
|
|
54
|
|
343
|
|
639
|
|
|
Interest expense, net
|
(10,372)
|
|
(4,178)
|
|
(40,473)
|
|
(16,241)
|
|
|
Foreign currency translation and
transaction gains (losses)
|
1,082
|
|
(371)
|
|
1,557
|
|
(1,695)
|
|
|
Impairment of auction rate
securities
|
(137)
|
|
-
|
|
(137)
|
|
(279)
|
|
|
Income attributable to sale of
tax benefits
|
2,337
|
|
3,112
|
|
8,729
|
|
15,515
|
|
|
Gain on acquisition of
controlling interest
|
-
|
|
-
|
|
36,928
|
|
-
|
|
|
Gain from extinguishment of
liability
|
-
|
|
13,348
|
|
-
|
|
13,348
|
|
|
Other non-operating income
(expense), net
|
314
|
|
(446)
|
|
267
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations before income taxes and equity in income (losses)
of investees
|
(2,627)
|
|
20,012
|
|
30,782
|
|
78,360
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
7,107
|
|
(5,198)
|
|
1,098
|
|
(15,430)
|
|
Equity in income (losses) of
investees, net
|
56
|
|
640
|
|
998
|
|
2,136
|
|
|
|
Income from continuing
operations
|
4,536
|
|
15,454
|
|
32,878
|
|
65,066
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
Income from discontinued
operations, net of related tax
|
-
|
|
672
|
|
14
|
|
3,487
|
|
|
Gain on sale of a subsidiary in
New Zealand, net of related tax
|
-
|
|
-
|
|
4,336
|
|
-
|
|
|
|
Net income
|
4,536
|
|
16,126
|
|
37,228
|
|
68,553
|
|
|
|
Net (loss) income attributable
to noncontrolling interest
|
(78)
|
|
62
|
|
90
|
|
298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
the Company's stockholders
|
$
4,458
|
|
$
16,188
|
|
$
37,318
|
|
$
68,851
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to the Company's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
0.10
|
|
$
0.35
|
|
$
0.73
|
|
$
1.44
|
|
|
Discontinued
operations
|
-
|
|
0.01
|
|
0.09
|
|
0.08
|
|
|
Net
income
|
$
0.10
|
|
$
0.36
|
|
$
0.82
|
|
$
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
0.10
|
|
$
0.34
|
|
$
0.73
|
|
$
1.43
|
|
|
Discontinued
operations
|
-
|
|
0.01
|
|
0.09
|
|
0.08
|
|
|
Net
income
|
$
0.10
|
|
$
0.35
|
|
$
0.82
|
|
$
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computation of earnings per share attributable to
the Company's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
45,431
|
|
45,426
|
|
45,431
|
|
45,391
|
|
|
Diluted
|
45,450
|
|
45,623
|
|
45,452
|
|
45,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In January 2010, we sold our
interest in our New Zealand subsidiary, Geothermal Development
Limited ("GDL"). As a result of such sale, the operations of
GDL have been included in discontinued operations in the three and
twelve-month periods ended December 31, 2010.
|
|
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
|
|
Condensed Consolidated Balance
Sheets
|
|
As of December 31, 2010 and
2009
|
|
(Unaudited)
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
82,815
|
|
$
46,307
|
|
|
Restricted cash, cash
equivalents and marketable securities
|
23,309
|
|
40,955
|
|
|
Receivables:
|
|
|
|
|
|
|
Trade
|
54,495
|
|
53,423
|
|
|
|
Related entities
|
303
|
|
441
|
|
|
|
Other
|
8,173
|
|
7,884
|
|
|
Due from Parent
|
272
|
|
422
|
|
|
Inventories
|
12,538
|
|
15,486
|
|
|
Costs and estimated earnings in
excess of billings on uncompleted contracts
|
6,146
|
|
14,640
|
|
|
Deferred income taxes
|
1,674
|
|
3,617
|
|
|
Prepaid expenses and
other
|
14,929
|
|
12,080
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
204,654
|
|
195,255
|
|
Long-term marketable
securities
|
1,287
|
|
652
|
|
Restricted cash, cash
equivalents and marketable securities
|
1,740
|
|
2,512
|
|
Unconsolidated investments
|
4,244
|
|
35,188
|
|
Deposits and other
|
21,353
|
|
18,653
|
|
Deferred income taxes
|
17,087
|
|
-
|
|
Deferred charges
|
37,571
|
|
31,724
|
|
Property, plant and equipment,
net
|
1,425,467
|
|
998,693
|
|
Construction-in-process
|
270,634
|
|
518,595
|
|
Deferred financing and lease
costs, net
|
19,017
|
|
20,940
|
|
Intangible assets
|
40,274
|
|
41,981
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
2,043,328
|
|
$
1,864,193
|
|
Liabilities and
Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
$
85,549
|
|
$
73,993
|
|
|
Billings in excess of costs and
estimated earnings on uncompleted contracts
|
3,153
|
|
3,351
|
|
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and
non-recourse
|
15,020
|
|
19,191
|
|
|
|
Full recourse
|
13,010
|
|
12,823
|
|
|
|
Senior secured notes
(non-recourse)
|
20,990
|
|
20,227
|
|
|
Due to Parent, including current
portion of notes payable to Parent
|
-
|
|
10,018
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
137,722
|
|
139,603
|
|
Long-term debt, net of current
portion:
|
|
|
|
|
|
Limited and
non-recourse
|
114,132
|
|
129,152
|
|
|
Full recourse:
|
|
|
|
|
|
Senior unsecured
bonds
|
142,003
|
|
-
|
|
|
Other
|
84,166
|
|
77,177
|
|
|
Revolving credit lines with
banks (full recourse)
|
189,466
|
|
134,000
|
|
|
Senior secured notes
(non-recourse)
|
210,882
|
|
231,872
|
|
Liability associated with sale
of tax benefits
|
66,587
|
|
73,246
|
|
Deferred lease income
|
71,264
|
|
72,867
|
|
Deferred income taxes
|
30,878
|
|
53,722
|
|
Liability for unrecognized tax
benefits
|
5,431
|
|
4,931
|
|
Liabilities for severance
pay
|
20,706
|
|
18,332
|
|
Asset retirement
obligation
|
19,903
|
|
14,238
|
|
Other long-term
liabilities
|
4,961
|
|
3,358
|
|
|
|
|
Total liabilities
|
1,098,101
|
|
952,498
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
The Company's stockholders'
equity:
|
|
|
|
|
|
|
Common stock
|
46
|
|
46
|
|
|
|
Additional paid-in
capital
|
716,731
|
|
709,354
|
|
|
|
Retained earnings
|
221,311
|
|
196,950
|
|
|
|
Accumulated other comprehensive
income
|
1,044
|
|
622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
939,132
|
|
906,972
|
|
|
Noncontrolling
interest
|
6,095
|
|
4,723
|
|
|
|
|
Total equity
|
945,227
|
|
911,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
2,043,328
|
|
$
1,864,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
|
|
Reconciliation of EBITDA and
Adjusted EBITDA and Additional Cash Flows
Information
|
|
For the Three and Twelve-Month
Periods Ended December 31, 2010 and 2009
|
|
(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 and
twelve-month periods ended December 31,
2010, and 2009:
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
21,759
|
|
$
33,076
|
|
$
101,403
|
|
$
110,772
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net (excluding
amortization
|
|
|
|
|
|
|
|
|
|
|
of deferred
financing costs)
|
|
9,544
|
|
3,422
|
|
37,590
|
|
13,623
|
|
|
Interest income
|
|
89
|
|
(54)
|
|
(343)
|
|
(639)
|
|
|
Income tax provision
|
|
(7,107)
|
|
5,485
|
|
908
|
|
16,924
|
|
|
Adjustments to reconcile net
income to net cash
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities (excluding
|
|
|
|
|
|
|
|
|
|
|
depreciation and
amortization)
|
|
5,077
|
|
(1,133)
|
|
22,586
|
|
22,392
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
29,362
|
|
40,796
|
|
162,144
|
|
163,072
|
|
Interest, taxes, depreciation
and amortization attributable
|
|
|
|
|
|
|
|
|
|
|
to the Company's equity in
Mammoth-Pacific L.P.
|
|
-
|
|
1,048
|
|
2,115
|
|
3,891
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
29,362
|
|
$
41,844
|
|
$
164,259
|
|
$
166,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
$
(50,800)
|
|
$
(37,155)
|
|
$
(203,820)
|
|
$
(286,036)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
$
62,616
|
|
$
30,117
|
|
$
138,925
|
|
$
187,036
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
22,300
|
|
$
15,582
|
|
$
86,761
|
|
$
64,376
|
|
|
|
|
|
|
|
|
|
|
|
Ormat Technologies
Contact:
|
Investor Relations
Contact:
|
|
Dita Bronicki
|
Marybeth Csaby/Rob
Fink
|
|
CEO
|
KCSA Strategic
Communications
|
|
775-356-9029
|
212-896-1236 (Marybeth)
/212-896-1206 (Rob)
|
|
dbronicki@ormat.com
|
mcsaby@kcsa.com/rfink@kcsa.com
|
|
|
|
SOURCE Ormat Technologies, Inc.