RENO, Nevada, May 4, 2011 /PRNewswire/ -- Ormat
Technologies, Inc. (NYSE: ORA) today announced financial results
for the first quarter of 2011.
Quarterly highlights:
- An 18% increase in total revenues year-over-year;
- A 14% increase in electricity generation;
- Continuing operational challenges in North Brawley resulting in quarterly
loss;
- Increase in Product Segment backlog;
- Acquired lease rights on 8,000 acres and option to leases on
264,000 acres of privately held land.
Commenting on the results, Dita Bronicki, Chief Executive
Officer of Ormat, stated: "Total revenue increased 18.4% driven by
strong results in both our Electricity and Product Segments.
Facilities added in the past year and the performance of most
of our plants translated into growth in generation and in revenue,
which increased to $78.3 million.
Excluding North Brawley, gross
margin from this segment in the first quarter of 2011 would have
been approximately 30%.
(Logo:
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While generation from North
Brawley continued to increase and recently demonstrated
capacity of 33 MW, operating costs remain high, affecting
profitability in the segment and masking the achievements of our
other plants. We continue with our efforts to address the
operational issues, reduce O&M costs and increase the
generation of the power plant.
During the quarter, we had further success in our Product
Segment entering into new contracts for the supply of geothermal
power plants and other power generating units outside of
the United States. Product
Segment backlog increased to approximately $84 million and we expect that the backlog of
this segment will continue to grow with additional opportunities
from international markets.
To support future development, we entered into agreements that
will allow us to explore and develop projects on large blocks of
privately owned land in the Pacific Northwest, which are not
subject to the same delays that we experience on federal lands.
Work on our early and advanced-stage projects continued to progress
and we expect to add up to 220 MW to our generating capacity by the
end of 2013."
For the three months ended March 31,
2011, total revenues were $97.8
million, compared to $82.7
million in the first quarter of 2010. Electricity Segment
revenues increased by 18.4% to $78.3
million, up from $66.1 million
in the first quarter of 2010. Total generation increased by 14.2%
and the average revenue rate of the Company's Electricity Segment
was $75 per MWh. Product
Segment revenues increased by 18.1% to $19.6
million, up from $16.5 million
in the first quarter of 2010.
For the quarter, the Company reported net loss of $9.0 million, or $0.20 per share (basic and diluted), compared to
net income of $1.8 million, or
$0.04 per share (basic and diluted),
for the same period a year ago. The decrease is principally
attributable to the North Brawley
power plant which had a pre-tax loss of approximately $10.3 million.
Adjusted EBITDA for the first quarter of 2011 was $27.2 million, compared to $32.1 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 its unconsolidated 50% interest in the Mammoth complex in
California in the three months
ended March 31, 2010. The
reconciliation of GAAP net cash provided by operating activities to
Adjusted EBITDA and additional cash flows information is set forth
below.
As of March 31, 2011, cash, cash
equivalents and marketable securities were $64.8 million. In addition, as of March 31, 2011, the Company has available
committed lines of credit with commercial banks aggregating
$402.5 million, of which $223.7 million is unused.
On May 4, 2011, Ormat's Board of
Directors approved the payment of a quarterly dividend of
$0.04 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, 2011 to
shareholders of record as of the close of business on May 18, 2011. The Company expects to pay a
dividend of $0.04 per share in the
next two quarters.
Commenting on the outlook for 2011, Ms. Bronicki said, "We
continue to expect 2011 Electricity Segment revenues to total
$315 to $325 million; in the Product
Segment we are updating our revenues guidance to $80 to $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. EDT on Thursday, May 5, 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.
The webcast will be available approximately 2 hours after the
conclusion of the live call. A replay will be available from
available from 1 p.m. EDT on
May 5, 2011. Please call:
(800) 642-1687 (U.S. and Canada)
(706) 645-9291 (International) and enter the Reply code:
60633905.
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,
which it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1,300 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 February 28, 2011.
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
|
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
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Operations
For the Three-Month Periods
Ended March 31, 2011 and 2010
(Unaudited)
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
78,268
|
|
$
66,105
|
|
|
Product
|
19,552
|
|
16,549
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
97,820
|
|
82,654
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
Electricity
|
65,937
|
|
54,523
|
|
|
Product
|
16,890
|
|
12,437
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
82,827
|
|
66,960
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
14,993
|
|
15,694
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
expenses
|
2,207
|
|
3,267
|
|
|
Selling and marketing
expenses
|
2,660
|
|
3,202
|
|
|
General and administrative
expenses
|
7,007
|
|
7,020
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
3,119
|
|
2,205
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest income
|
135
|
|
197
|
|
|
Interest expense, net
|
(13,080)
|
|
(9,714)
|
|
|
Foreign currency translation and
transaction gains
|
517
|
|
434
|
|
|
Income attributable to sale of
tax benefits
|
2,139
|
|
2,139
|
|
|
Other non-operating expense,
net
|
(797)
|
|
(359)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations before income taxes
|
|
|
|
|
|
|
|
and equity in income
(losses) of investees
|
(7,967)
|
|
(5,098)
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision)
|
(586)
|
|
2,557
|
|
Equity in income (losses) of
investees, net
|
(412)
|
|
546
|
|
|
|
|
Loss from continuing operations
|
(8,965)
|
|
(1,995)
|
|
Discontinued
operations:
|
|
|
|
|
|
Income from discontinued
operations, net of related tax
|
-
|
|
14
|
|
|
Gain on sale of a subsidiary in
New Zealand, net of related tax
|
-
|
|
3,766
|
|
|
|
|
Net income (loss)
|
(8,965)
|
|
1,785
|
|
|
|
|
Net loss (income) attributable
to noncontrolling interest
|
(10)
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
the Company's stockholders
|
$
(8,975)
|
|
$
1,838
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
attributable to the Company's stockholders - basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(0.20)
|
|
$
(0.04)
|
|
|
|
Discontinued
operations
|
-
|
|
0.08
|
|
|
|
Net income (loss0
|
$
(0.20)
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computation of earnings (loss)
|
|
|
|
|
per share
attributable to the Company's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
45,431
|
|
45,431
|
|
|
Diluted
|
45,431
|
|
45,457
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
As of March 31, 2011 and
December 31, 2010
(Unaudited)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
40,675
|
|
$
82,815
|
|
|
Marketable securities
|
24,149
|
|
-
|
|
|
Restricted cash, cash
equivalents and marketable securities
|
54,828
|
|
23,309
|
|
|
Receivables:
|
|
|
|
|
|
|
Trade
|
70,491
|
|
54,495
|
|
|
|
Related entities
|
332
|
|
303
|
|
|
|
Other
|
6,544
|
|
8,173
|
|
|
Due from Parent
|
503
|
|
272
|
|
|
Inventories
|
14,554
|
|
12,538
|
|
|
Costs and estimated earnings in
excess of billings on uncompleted contracts
|
3,531
|
|
6,146
|
|
|
Deferred income taxes
|
1,582
|
|
1,674
|
|
|
Prepaid expenses and
other
|
13,791
|
|
14,929
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
230,980
|
|
204,654
|
|
Long-term marketable
securities
|
-
|
|
1,287
|
|
Restricted cash, cash
equivalents and marketable securities
|
-
|
|
1,740
|
|
Unconsolidated investments
|
3,832
|
|
4,244
|
|
Deposits and other
|
22,086
|
|
21,353
|
|
Deferred income taxes
|
17,087
|
|
17,087
|
|
Deferred charges
|
37,294
|
|
37,571
|
|
Property, plant and equipment,
net
|
1,426,485
|
|
1,425,467
|
|
Construction-in-process
|
296,930
|
|
270,634
|
|
Deferred financing and lease
costs, net
|
19,774
|
|
19,017
|
|
Intangible assets
|
39,479
|
|
40,274
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
2,093,947
|
|
$
2,043,328
|
|
Liabilities and
Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
$
76,743
|
|
$
85,549
|
|
|
Billings in excess of costs and
estimated earnings on uncompleted contracts
|
15,376
|
|
3,153
|
|
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and
non-recourse
|
14,667
|
|
15,020
|
|
|
|
Full recourse
|
14,775
|
|
13,010
|
|
|
|
Senior secured notes
(non-recourse)
|
20,990
|
|
20,990
|
|
|
Due to Parent, including current
portion of notes payable to Parent
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
142,551
|
|
137,722
|
|
Long-term debt, net of current
portion:
|
|
|
|
|
|
Limited and
non-recourse
|
113,532
|
|
114,132
|
|
|
Full recourse:
|
|
|
|
|
|
Senior unsecured
bonds
|
251,425
|
|
142,003
|
|
|
Other
|
80,920
|
|
84,166
|
|
|
Revolving credit lines with
banks (full recourse)
|
118,500
|
|
189,466
|
|
|
Senior secured notes
(non-recourse)
|
210,882
|
|
210,882
|
|
Liability associated with sale
of tax benefits
|
83,894
|
|
66,587
|
|
Deferred lease income
|
70,324
|
|
71,264
|
|
Deferred income taxes
|
30,608
|
|
30,878
|
|
Liability for unrecognized tax
benefits
|
4,294
|
|
5,431
|
|
Liabilities for severance
pay
|
21,987
|
|
20,706
|
|
Asset retirement
obligation
|
20,290
|
|
19,903
|
|
Other long-term
liabilities
|
4,704
|
|
4,961
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
1,153,911
|
|
1,098,101
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
The Company's stockholders'
equity:
|
|
|
|
|
|
|
Common stock
|
46
|
|
46
|
|
|
|
Additional paid-in
capital
|
720,801
|
|
716,731
|
|
|
|
Retained earnings
|
210,046
|
|
221,311
|
|
|
|
Accumulated other comprehensive
income
|
968
|
|
1,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
931,861
|
|
939,132
|
|
|
Noncontrolling
interest
|
8,175
|
|
6,095
|
|
|
|
|
Total equity
|
940,036
|
|
945,227
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
2,093,947
|
|
$
2,043,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Reconciliation of EBITDA and
Adjusted EBITDA and Additional Cash Flows
Information
For the Three-Month Periods
Ended March 31, 2011 and 2010
(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, 2011 and 2010:
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
13,066
|
|
$
48,240
|
|
Adjusted for:
|
|
|
|
|
|
|
Interest expense, net (excluding
amortization
|
|
|
|
|
|
|
of deferred
financing costs)
|
|
12,296
|
|
9,021
|
|
|
Interest income
|
|
(135)
|
|
(197)
|
|
|
Income tax benefit
|
|
586
|
|
19
|
|
|
Adjustments to reconcile net
income (loss) to net cash
|
|
|
|
|
|
|
provided by operating
activities (excluding
|
|
|
|
|
|
|
depreciation and
amortization)
|
|
1,339
|
|
(26,006)
|
|
|
|
|
|
|
|
|
EBITDA
|
|
27,152
|
|
31,077
|
|
Interest, taxes, depreciation
and amortization attributable
|
|
|
|
|
|
|
to the Company's equity in
Mammoth-Pacific L.P.
|
|
-
|
|
973
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
27,152
|
|
$
32,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
$
(107,924)
|
|
$
(64,981)
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
$
52,718
|
|
$
13,545
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
23,370
|
|
$
20,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Ormat Technologies, Inc.