RENO, Nev., May 8, 2012 /PRNewswire/ -- Ormat
Technologies, Inc. (NYSE: ORA) today announced financial results
for the first quarter of 2012.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
Quarterly highlights and recent developments:
- Total revenues increased 35 percent to $132.4 million;
- Cash flow from operations of $41.9
million;
- Operating income of $25.7 million
and EBITDA of $51.5 million;
- Gross margin percentage 30.1 percent compared to 15.3 percent
during same period last year; and
- Robust product backlog of $207
million as of May 8,
2012.
Commenting on the results, Dita Bronicki, Chief Executive
Officer of Ormat, stated: "We had a very good first quarter.
Total revenues increased 35 percent year-over-year, while our
combined gross margin almost doubled from the same period last
year. Net income significantly improved and we continued to
invest in our long-term growth strategy.
"The good results of the quarter are a testament to the
continued progress that we have made in both our electricity and
product segments. On the electricity side, we see the result
of the well field and equipment improvement which increased
generation and reduced operating costs. On the product side, we
have successfully translated our technological leadership and
proven execution abilities into a substantial backlog."
Financial Summary
For the three months ended March 31,
2012, total revenues increased 35.3 percent to $132.4 million from $97.8
million in the first quarter of 2011. Product revenues
more than doubled to $50.1 million,
from $19.6 million in the three
months ended March 31, 2011.
Electricity revenues increased 5.1 percent to $82.2 million, up from $78.3 million in the three months ended
March 31, 2011.
Operating income for the three months ended March 31, 2012 increased by $22.6 million to $25.7
million from $3.1 million for
the three months ended March 31,
2011. The increase is principally attributable to higher
rates and lower operating costs in our electricity segment and
higher volumes of customer orders in our product segment.
For the quarter, the company reported net income of $8.0 million, or $0.17 per share (basic and diluted), compared to
net loss of $9.0 million, or
$0.20 per share (basic and diluted),
for the same quarter a year ago. The increase is principally
attributable to the $22.6 million
increase in operating income.
EBITDA for the first quarter of 2012 was $51.5 million, compared to $27.2 million in the same quarter last year. The
reconciliation of GAAP net cash provided by operating activities to
EBITDA and additional cash flows information is set forth
below.
As of March 31, 2012, cash, cash
equivalents and marketable securities were $100.3 million. In addition, as of March 31, 2012, the company has available
committed lines of credit with commercial banks aggregating
$420.0 million, of which $52.6 million is unused.
On May 8, 2012, 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 30, 2012 to
shareholders of record as of the close of business on May 21, 2012. The company expects to pay a
dividend of $0.04 per share in the
next two quarters.
Commenting on the outlook for 2012, Ms. Bronicki said, "We
currently expect our 2012 product revenues to be $165 to $175 million. We are maintaining our
electricity forecast of $315 to $330
million. The wide range is due to the uncertainty around
natural gas prices."
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 Wednesday, May 9, 2012. 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 two hours after the
conclusion of the live call. A replay will be available from
12 p.m. EDT on May 9, 2012. Please call: (877) 258-8832 (U.S.
and Canada) (404) 537-3406
(International) and enter the Reply code: 72895260.
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 82 U.S. patents. Ormat has engineered and built power plants
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1,430 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, Tuscarora, 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 29, 2012.
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/Rob Fink
|
CEO
|
KCSA
Strategic Communications
|
775-356-9029
|
212-896-1215 (Todd) /212-896-1206 (Rob)
|
dbronicki@ormat.com
|
tfromer@kcsa.com / rfink@kcsa.com
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Operations
For the
Three-Month Periods Ended March 31, 2012 and
2011
(Unaudited)
|
|
|
|
Three
Months Ended March 31,
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
(In
thousands, except per share data)
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
|
82,247
|
|
$
|
78,268
|
Product
|
|
50,105
|
|
|
19,552
|
Total
revenues
|
|
132,352
|
|
|
97,820
|
Cost of
revenues:
|
|
|
|
|
|
Electricity
|
|
57,931
|
|
|
65,937
|
Product
|
|
34,627
|
|
|
16,890
|
Total cost of
revenues
|
|
92,558
|
|
|
82,827
|
Gross
margin
|
|
39,794
|
|
|
14,993
|
Operating
expenses:
|
|
|
|
|
|
Research and development
expenses
|
|
1,048
|
|
|
2,207
|
Selling and marketing
expenses
|
|
4,922
|
|
|
2,660
|
General and administrative
expenses
|
|
7,314
|
|
|
7,007
|
Write-off of unsuccessful exploration
activities
|
|
768
|
|
|
—
|
Operating
income
|
|
25,742
|
|
|
3,119
|
Other
income (expense):
|
|
|
|
|
|
Interest income
|
|
388
|
|
|
135
|
Interest expense, net
|
|
(14,878)
|
|
|
(13,080)
|
Foreign currency translation and
transaction gains (losses)
|
|
14
|
|
|
517
|
Income attributable to sale of tax
benefits
|
|
2,517
|
|
|
2,139
|
Other non-operating expense,
net
|
|
(161)
|
|
|
(797)
|
Income (loss), before
income taxes and equity in
|
|
|
|
|
|
losses of investees
|
|
13,622
|
|
|
(7,967)
|
Income tax
provision
|
|
(5,457)
|
|
|
(586)
|
Equity in
losses of investees, net
|
|
(140)
|
|
|
(412)
|
Net income
(loss)
|
|
8,025
|
|
|
(8,965)
|
Net income
attributable to noncontrolling interest
|
|
(130)
|
|
|
(10)
|
Net income (loss)
attributable to the Company's stockholders
|
$
|
7,895
|
|
$
|
(8,975)
|
|
|
|
|
|
|
Earnings
(loss) per share attributable to the Company's stockholders — basic
and diluted:
|
$
|
0.17
|
|
$
|
(0.20)
|
Weighted
average number of shares used in computation of earnings per
share
attributable to the Company's
stockholders:
|
|
|
|
|
|
Basic
|
|
45,431
|
|
|
45,431
|
Diluted
|
|
45,437
|
|
|
45,431
|
|
|
Ormat Technologies, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
As of
March 31, 2012 and December 31, 2011
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
|
(In
thousands)
|
ASSETS
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
84,580
|
|
$
|
99,886
|
Marketable securities
|
|
|
15,719
|
|
|
18,521
|
Restricted cash, cash equivalents and
marketable securities
|
|
|
75,145
|
|
|
75,521
|
Receivables:
|
|
|
|
|
|
|
Trade
|
|
|
43,545
|
|
|
51,274
|
Related entity
|
|
|
307
|
|
|
287
|
Other
|
|
|
8,058
|
|
|
9,415
|
Due from Parent
|
|
|
123
|
|
|
260
|
Inventories
|
|
|
17,200
|
|
|
12,541
|
Costs and estimated earnings in excess
of billings on uncompleted contracts
|
|
|
8,618
|
|
|
3,966
|
Deferred income taxes
|
|
|
2,315
|
|
|
1,842
|
Prepaid expenses and other
|
|
|
19,863
|
|
|
18,672
|
Total current assets
|
|
|
275,473
|
|
|
292,185
|
Unconsolidated investments
|
|
|
3,732
|
|
|
3,757
|
Deposits
and other
|
|
|
22,940
|
|
|
22,194
|
Deferred
charges
|
|
|
40,066
|
|
|
40,236
|
Property,
plant and equipment, net
|
|
|
1,505,543
|
|
|
1,518,532
|
Construction-in-process
|
|
|
413,998
|
|
|
370,551
|
Deferred
financing and lease costs, net
|
|
|
28,054
|
|
|
28,482
|
Intangible
assets, net
|
|
|
37,963
|
|
|
38,781
|
Total assets
|
|
$
|
2,327,769
|
|
$
|
2,314,718
|
LIABILITIES AND EQUITY
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
98,993
|
|
$
|
105,112
|
Billings in excess of costs and
estimated earnings on uncompleted contracts
|
|
|
32,155
|
|
|
33,104
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and
non-recourse:
|
|
|
|
|
|
|
Senior secured notes (non-recourse)
|
|
|
22,247
|
|
|
21,464
|
Other loans
|
|
|
13,612
|
|
|
13,547
|
Full
recourse
|
|
|
20,647
|
|
|
20,543
|
Total current liabilities
|
|
|
187,654
|
|
|
193,770
|
Long-term
debt, net of current portion:
|
|
|
|
|
|
|
Limited and non-recourse:
|
|
|
|
|
|
|
Senior secured notes
(non-recourse)
|
|
|
340,374
|
|
|
341,157
|
Other loans
|
|
|
99,921
|
|
|
100,585
|
Full recourse:
|
|
|
|
|
|
|
Senior unsecured
bonds
|
|
|
249,964
|
|
|
250,042
|
Other loans
|
|
|
60,273
|
|
|
63,623
|
Revolving credit lines
with banks (full recourse)
|
|
|
227,642
|
|
|
214,049
|
Liability
associated with sale of tax benefits
|
|
|
64,383
|
|
|
69,269
|
Deferred
lease income
|
|
|
68,321
|
|
|
68,955
|
Deferred
income taxes
|
|
|
59,399
|
|
|
54,665
|
Liability
for unrecognized tax benefits
|
|
|
6,409
|
|
|
5,875
|
Liabilities for severance pay
|
|
|
21,674
|
|
|
20,547
|
Asset
retirement obligation
|
|
|
21,697
|
|
|
21,284
|
Other
long-term liabilities
|
|
|
4,021
|
|
|
4,253
|
Total liabilities
|
|
|
1,411,732
|
|
|
1,408,074
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
The Company's stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
46
|
|
|
46
|
Additional paid-in
capital
|
|
|
727,403
|
|
|
725,746
|
Retained
earnings
|
|
|
180,226
|
|
|
172,331
|
Accumulated other
comprehensive income
|
|
|
518
|
|
|
595
|
|
|
|
908,193
|
|
|
898,718
|
Noncontrolling interest
|
|
|
7,844
|
|
|
7,926
|
Total
equity
|
|
|
916,037
|
|
|
906,644
|
Total liabilities and
equity
|
|
$
|
2,327,769
|
|
$
|
2,314,718
|
|
|
Ormat
Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Additional Cash Flows
Information
For the
Three-Month Periods Ended March 31, 2012 and 2011
(Unaudited)
|
|
We
calculate EBITDA as net income before interest, taxes, depreciation
and amortization. EBITDA is not a measurement 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 is
presented because we believe it is 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 differently than we
do. The following table reconciles net cash provided by operating
activities to EBITDA for the three-month periods ended March 31,
2012 and 2011:
|
|
|
|
Three
Months Ended March 31,
|
|
|
2012
|
|
2011
|
|
|
(in thousands)
|
Net cash
provided by operating activities
|
|
$
|
41,874
|
|
$
|
13,066
|
Adjusted
for:
|
|
|
|
|
|
|
Interest
expense, net (excluding amortization
|
|
|
|
|
|
|
of deferred financing
costs)
|
|
|
13,647
|
|
|
12,296
|
Interest
income
|
|
|
(388)
|
|
|
(135)
|
Income tax
provision (benefit)
|
|
|
5,457
|
|
|
586
|
Adjustments to reconcile net income or loss to net
cash
|
|
|
|
|
|
|
provided by operating activities (excluding
|
|
|
|
|
|
|
depreciation and amortization)
|
|
|
(9,105)
|
|
|
1,339
|
EBITDA
|
|
$
|
51,485
|
|
$
|
27,152
|
Net cash
used in investing activities
|
|
$
|
(62,333)
|
|
$
|
(107,924)
|
Net cash
provided by financing activities
|
|
$
|
5,153
|
|
$
|
52,718
|
Depreciation and amortization
|
|
$
|
24,744
|
|
$
|
23,370
|
SOURCE Ormat Technologies, Inc.