RENO, Nev., Aug. 1, 2012 /PRNewswire/ -- Ormat
Technologies, Inc. (NYSE: ORA) today announced financial results
for the second quarter of 2012.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
Quarterly highlights and recent developments:
- Total revenues increased 24 percent to $129.8 million
- Cash flow from operations totals $30.2
million
- Operating income increased 34 percent to $26.0 million
- EBITDA of $50.8 million
- Robust product backlog of $242
million as of August 1,
2012
- 30MW McGinness Hills power plant in Nevada is operating at full power
- Received $72.2 million cash grant
for three projects
Commenting on the results, Dita Bronicki, chief executive
officer of Ormat, stated: "We had a very good second quarter.
Total revenues increased 24 percent period-over-period.
Operating income significantly improved. Our organic growth and
improved operations results offset the impact of low natural gas
prices on our energy rates under the SO#4 PPAs in California.
"We achieved a number of key milestones during the second
quarter. On the product side, we continued to win orders and
strengthen our already robust backlog. In July, we announced the
closing of a $61.4 million
engineering, procurement and construction contract with
Enel Green Power North America,
maintaining our robust product backlog of $242 million. On the electricity side, we
recently received off-taker approval of the commercial operation
date for our Tuscarora power
plant. In addition, we successfully completed the construction of
the 30-MW McGinness Hills geothermal power plant demonstrating the
strength of our vertically integrated structure to move from green
field to production. The 30 MW McGinness Hills power plant
that is in full operation since June, increased the total
generating capacity of our portfolio to 586 MW."
Financial Summary
Second Quarter Results
For the three months ended June 30,
2012, total revenues increased by 24.1 percent to
$129.8 million from $104.6 million in the second quarter of
2011. Product revenues almost doubled to $44.8 million, from $23.4
million in the three months ended June 30, 2011. Electricity revenues increased 4.7
percent to $85.0 million, up from
$81.2 million in the three months
ended June 30, 2011.
Operating income for the three months ended June 30, 2012 increased by $6.6 million to $26.0
million from $19.4 million for
the three months ended June 30, 2011.
The increase is principally attributed to lower maintenance costs
in our electricity segment and higher revenues in our product
segment due to the increase in new customer orders that were
secured in 2011.
For the quarter, the company reported net income of $8.7 million, or $0.19 per share (basic and diluted), compared to
$8.2 million, or $0.18 per share (basic and diluted), for the same
quarter a year ago.
EBITDA for the second quarter of 2012 was $50.8 million, compared to $47.7 million for 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 June 30, 2012, cash, cash
equivalents and marketable securities were $71.9 million. In addition, as of June 30, 2012, the company has available,
committed lines of credit with commercial banks aggregating
$466.8 million, of which $64.8 million is unused.
On August 1, 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 percent of the company's net income. The dividend
will be paid on August 23, 2012 to
shareholders of record as of the close of business on August 14, 2012. The company expects to pay
a dividend of $0.04 per share in the
next quarter.
Commenting on the outlook for 2012, Bronicki said, "We currently
maintain our 2012 product revenues to be $165 to $175 million. We narrow the range
of our expected electricity forecast to be between $320 and $330 million."
Six-Month Results
For the six months ended June 30,
2012, total revenues increased 29.5 percent to $262.2 million from $202.4
million in the six months ended June
30, 2011. Net income for the period was $16.7 million, or $0.36 per share (basic and diluted), compared to
net loss of $0.7 million, or
$0.02 per share (basic and diluted),
in the same period in 2011. The increase is principally
attributable to the $29.2 million
increase in operating income.
Product revenues more than doubled to $94.9 million, from $43.0
million in the six months ended June
30, 2011. Electricity revenues increased 4.9 percent
to $167.3 million, up from
$159.5 million in the six months
ended June 30, 2011.
EBITDA for the six months ended June 30,
2012 was $102.3 million,
compared to $74.8 million for the
same period last year. The reconciliation of GAAP net cash provided
by operating activities to EBITDA and additional cash flows
information is set forth below.
Conference Call Details
Ormat will host a conference call to discuss its financial
results and other matters included in this press release at
10 a.m. EDT on Thursday, August 2, 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
11 a.m. EDT on August 2, 2012. Please call: (855) 859-2056 (U.S.
and Canada) (404) 537-3406
(International) and enter the replay code: 99938996.
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 over 1,500 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, McGinness
Hills, 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 and Six-Month Periods Ended June 30, 2012 and
2011
(Unaudited)
|
|
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(In thousands, except per share
data)
|
|
(In thousands, except per share
data)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
$
|
85,011
|
|
$
|
81,190
|
|
$
|
167,258
|
|
$
|
159,458
|
Product
|
|
44,826
|
|
|
23,424
|
|
|
94,931
|
|
|
42,976
|
Total revenues
|
|
129,837
|
|
|
104,614
|
|
|
262,189
|
|
|
202,434
|
Cost
of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
|
57,953
|
|
|
62,212
|
|
|
115,884
|
|
|
128,149
|
Product
|
|
31,818
|
|
|
9,249
|
|
|
66,445
|
|
|
26,139
|
Total cost of revenues
|
|
89,771
|
|
|
71,461
|
|
|
182,329
|
|
|
154,288
|
Gross margin
|
|
40,066
|
|
|
33,153
|
|
|
79,860
|
|
|
48,146
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses
|
|
1,464
|
|
|
2,575
|
|
|
2,512
|
|
|
4,782
|
Selling and marketing
expenses
|
|
4,666
|
|
|
3,725
|
|
|
9,588
|
|
|
6,385
|
General and administrative
expenses
|
|
6,793
|
|
|
7,479
|
|
|
14,107
|
|
|
14,486
|
Write-off of unsuccessful
exploration
activities
|
|
1,151
|
|
|
—
|
|
|
1,919
|
|
|
—
|
Operating income
|
|
25,992
|
|
|
19,374
|
|
|
51,734
|
|
|
22,493
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
336
|
|
|
716
|
|
|
724
|
|
|
851
|
Interest expense,
net
|
|
(14,263)
|
|
|
(17,442)
|
|
|
(29,141)
|
|
|
(30,522)
|
Foreign currency translation
and
transaction gains
(losses)
|
|
(1,756)
|
|
|
596
|
|
|
(1,742)
|
|
|
1,113
|
Income attributable to sale
of tax
benefits
|
|
2,589
|
|
|
3,141
|
|
|
5,106
|
|
|
5,280
|
Other non-operating expense,
net
|
|
290
|
|
|
915
|
|
|
129
|
|
|
118
|
Income
(loss), before income
taxes and equity in losses
of
investees
|
|
13,188
|
|
|
7,300
|
|
|
26,810
|
|
|
(667)
|
Income tax
provision
|
|
(4,309)
|
|
|
1,007
|
|
|
(9,766)
|
|
|
421
|
Equity in
losses of investees, net
|
|
(157)
|
|
|
(69)
|
|
|
(297)
|
|
|
(481)
|
Net income (loss)
|
|
8,722
|
|
|
8,238
|
|
|
16,747
|
|
|
(727)
|
Net income attributable to
noncontrolling interest
|
|
(81)
|
|
|
(105)
|
|
|
(211)
|
|
|
(115)
|
Net income (loss) attributable to
the Company's stockholders
|
$
|
8,641
|
|
$
|
8,133
|
|
$
|
16,536
|
|
$
|
(842)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share attributable to the Company's stockholders — basic
and diluted:
|
$
|
0.19
|
|
$
|
0.18
|
|
$
|
0.36
|
|
$
|
(0.02)
|
Weighted
average number of shares used in computation of earnings per share
attributable to the Company's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
45,431
|
|
|
45,431
|
|
|
45,431
|
|
|
45,431
|
Diluted
|
|
45,438
|
|
|
45,443
|
|
|
45,438
|
|
|
45,431
|
Ormat
Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance
Sheets
As of
June 30, 2012 and December 31, 2011
(Unaudited)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
|
(In thousands)
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
66,684
|
|
$
|
99,886
|
Marketable
securities
|
|
|
5,221
|
|
|
18,521
|
Restricted cash, cash
equivalents and marketable securities
|
|
|
97,792
|
|
|
75,521
|
Receivables:
|
|
|
|
|
|
|
Trade
|
|
|
42,315
|
|
|
51,274
|
Related entity
|
|
|
329
|
|
|
287
|
Other
|
|
|
8,064
|
|
|
9,415
|
Due from Parent
|
|
|
161
|
|
|
260
|
Inventories
|
|
|
18,119
|
|
|
12,541
|
Costs and estimated earnings
in excess of billings on uncompleted
contracts
|
|
|
10,051
|
|
|
3,966
|
Deferred income
taxes
|
|
|
2,260
|
|
|
1,842
|
Prepaid expenses and
other
|
|
|
24,467
|
|
|
18,672
|
Total current assets
|
|
|
275,463
|
|
|
292,185
|
Unconsolidated investments
|
|
|
3,783
|
|
|
3,757
|
Deposits
and other
|
|
|
25,477
|
|
|
22,194
|
Deferred
charges
|
|
|
39,711
|
|
|
40,236
|
Property,
plant and equipment, net
|
|
|
1,560,127
|
|
|
1,518,532
|
Construction-in-process
|
|
|
325,206
|
|
|
370,551
|
Deferred
financing and lease costs, net
|
|
|
27,188
|
|
|
28,482
|
Intangible
assets, net
|
|
|
37,145
|
|
|
38,781
|
Total assets
|
|
$
|
2,294,100
|
|
$
|
2,314,718
|
LIABILITIES AND EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
106,264
|
|
$
|
105,112
|
Billings in excess of costs
and estimated earnings on uncompleted
contracts
|
|
|
25,272
|
|
|
33,104
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and
non-recourse:
|
|
|
|
|
|
|
Senior secured notes (non-recourse)
|
|
|
32,460
|
|
|
21,464
|
Other loans
|
|
|
13,677
|
|
|
13,547
|
Full recourse
|
|
|
20,647
|
|
|
20,543
|
Total current liabilities
|
|
|
198,320
|
|
|
193,770
|
Long-term
debt, net of current portion:
|
|
|
|
|
|
|
Limited and non-recourse:
|
|
|
|
|
|
|
Senior secured notes
(non-recourse)
|
|
|
330,161
|
|
|
341,157
|
Other loans
|
|
|
93,714
|
|
|
100,585
|
Full recourse:
|
|
|
|
|
|
|
Senior unsecured
bonds
|
|
|
249,888
|
|
|
250,042
|
Other loans
|
|
|
53,273
|
|
|
63,623
|
Revolving credit lines
with banks (full recourse)
|
|
|
203,369
|
|
|
214,049
|
Liability
associated with sale of tax benefits
|
|
|
60,247
|
|
|
69,269
|
Deferred
lease income
|
|
|
67,686
|
|
|
68,955
|
Deferred
income taxes
|
|
|
59,755
|
|
|
54,665
|
Liability
for unrecognized tax benefits
|
|
|
6,712
|
|
|
5,875
|
Liabilities for severance pay
|
|
|
20,857
|
|
|
20,547
|
Asset
retirement obligation
|
|
|
22,118
|
|
|
21,284
|
Other
long-term liabilities
|
|
|
3,789
|
|
|
4,253
|
Total liabilities
|
|
|
1,369,889
|
|
|
1,408,074
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
The Company's
stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
|
46
|
|
|
46
|
Additional paid-in capital
|
|
|
728,873
|
|
|
725,746
|
Retained earnings
|
|
|
187,048
|
|
|
172,331
|
Accumulated other comprehensive income
|
|
|
482
|
|
|
595
|
|
|
|
916,449
|
|
|
898,718
|
Noncontrolling
interest
|
|
|
7,762
|
|
|
7,926
|
Total equity
|
|
|
924,211
|
|
|
906,644
|
Total liabilities and equity
|
|
$
|
2,294,100
|
|
$
|
2,314,718
|
Ormat
Technologies, Inc. and Subsidiaries
|
Reconciliation of EBITDA and Additional Cash Flows
Information
|
For the
Three and Six-Month Periods Ended June 30, 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 and six-month periods ended June
30, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
(in thousands)
|
|
(in thousands)
|
Net cash
provided by operating activities
|
|
$
|
30,205
|
|
$
|
26,440
|
|
$
|
72,079
|
|
$
|
39,506
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net (excluding
amortization
of
deferred financing costs)
|
|
|
13,082
|
|
|
16,528
|
|
|
26,729
|
|
|
28,824
|
Interest
income
|
|
|
(336)
|
|
|
(716)
|
|
|
(724)
|
|
|
(851)
|
Income tax
provision (benefit)
|
|
|
4,309
|
|
|
(1,007)
|
|
|
9,766
|
|
|
(421)
|
Adjustments to reconcile net income or loss to
net cash provided by operating activities
(excluding depreciation and amortization)
|
|
|
3,530
|
|
|
6,433
|
|
|
(5,575)
|
|
|
7,772
|
EBITDA
|
|
$
|
50,790
|
|
$
|
47,678
|
|
$
|
102,275
|
|
$
|
74,830
|
Net cash
used in investing activities
|
|
$
|
(4,695)
|
|
$
|
(27,817)
|
|
$
|
(67,028)
|
|
$
|
(135,741)
|
Net cash
provided by financing activities
|
|
$
|
(43,406)
|
|
$
|
5,040
|
|
$
|
(38,253)
|
|
$
|
57,758
|
Depreciation and amortization
|
|
$
|
25,013
|
|
$
|
24,635
|
|
$
|
49,757
|
|
$
|
48,005
|
SOURCE Ormat Technologies, Inc.