RENO, Nevada, May 7, 2013 /PRNewswire/ -- Ormat
Technologies, Inc. (NYSE: ORA) today announced financial results
for the first quarter of 2013.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
Financial highlights & Recent
Developments:
- Total revenues amounted to $121.7
million; a 8.0% decrease from the first quarter of 2012,
mainly due to a reduction in the electricity segment revenues of
$9.3 million related to our SO#4 PPAs
in California and a net loss of
$4.6 million related to derivative
instruments;
- Product segment strength continues with a Backlog of
$224 million as of May 7, 2013.
- Replaced two SO#4 PPAs tied to natural gas at the Mammoth
complex with up to 21.5 MW of new long-term fixed price PPAs, with
higher rates.
- Net loss amounted to $1.9 million
or $0.04 per share compare to net
income of $8.0 million or
$0.17 per share; net income excluding
one-time termination fee of $9.0
million related to the replacement of Mammoth PPAs and a
$4.6 million loss related to oil and
gas derivative instruments was $11.6
million or $0.26 per
share;
- Received $35.7 million in cash as
a result of the ORTP tax equity transaction.
- Reached commercial operation for the 36 MW Olkaria III Plant 2
in Kenya; increasing our worldwide
generating capacity to 611 MW;
- Signed the Sarulla agreements and secured our role as a
supplier for approximately $254
million;
- Signed a 20-year PPA with Southern California Public Power
Authority (SCPPA) for our 16 MW Wild Rose project in Nevada;
Commenting on the results, Dita Bronicki, Chief Executive
Officer of Ormat, stated: "Since the beginning of the year,
we have achieved significant milestones that will further improve
both segments performance. Our 2013 organic growth plan to reach
637 MW is on schedule. The 36 MW Plant 2 in the Olkaria III complex
in Kenya reached commercial
operation bringing the total capacity of our portfolio to 611 MW,
and we are progressing with the construction of Heber Solar and Wild Rose projects that we
expect to complete by the end of 2013. In 2014, we plan to bring on
line plant 3 at the Olkaria III complex increasing its capacity to
approximately 100 MW."
"The power generation rose 4.2% over the same period last year,
driven mainly by our McGinness Hills power plant, which began
operations in July 2012. Additionally, we continue to take
action to increase earnings and reduce the effect that natural gas
prices have on our financial performance. We replaced two of the
SO#4 PPAs with new long-term fixed price PPAs for our Mammoth
complex in California. The
improved energy rates under the new PPAs are secured until 2033 and
will significantly improve the Mammoth complex profitability."
"Our product segment continued to benefit from strong demand for
new geothermal power plants and other power generating units.
The strong backlog coupled with recent positive development in the
Sarulla project provide enhanced visibility on our product revenue
for the coming few years."
Ms. Bronicki added, "We reaffirm our 2013 guidance and expect
total revenues to be between $515 million to
$535 million with electricity revenues between $335 million and $345 million and product segment
revenues between $180 million and $190
million."
Financial Summary
For the three months ended March 31,
2013, total revenues decreased 8.0 percent to $121.7 million from $132.4
million in the first quarter of 2012. Product revenues
increased slightly to $50.6 million
from $50.1 million in the three
months ended March 31, 2012.
Electricity revenues decreased 13.6 percent to $71.1 million from $82.2
million in the three months ended March 31, 2012. The decrease was mainly due to a
reduction of $9.3 million in revenues
due to the transition to short run avoided cost pricing linked to
natural gas prices in our SO#4 PPAs in California and a net loss of $4.6 million loss related to derivative
instruments; this decrease was offset by revenue contribution from
Tuscarora and McGinness power
plants.
Operating income for the three months ended March 31, 2013 was $8.5
million, compared to operating income of $25.7 million for the three months ended
March 31, 2012. The decrease was
primarily due to a decrease in our gross margin as a result of the
reduction in the electricity revenues and a one-time termination
fee related to the replacement of two Mammoth SO#4 PPAs included in
the selling and marketing expenses.
For the three months ended March 31,
2013, the company reported a net loss of $1.9 million, or $0.04 per share, compared to net income of
$8.0 million or $0.17 per share for the three months ended
March 31, 2012. Net income excluding
a one-time termination fee of $9.0
million related to the replacement of two Mammoth PPAs and
$4.6 million loss related to
derivative instruments was $11.6
million or $0.26 per
share;
Adjusted EBITDA for the three months ended March 31, 2013 was $45.7
million, compared to $51.5
million for the three months ended March 31, 2012. 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.
Net cash provided by operating activities was $18.2 million in the three months ended
March 31, 2013, compared to
$41.9 million in the three months
ended March 31, 2012.
As of March 31, 2013, cash, cash equivalents and a
short-term bank deposit were $60.6
million. In addition, as of March 31, 2013, the company
had available committed lines of credit with commercial banks
aggregating $440.9 million, of which
$152.9 million was unused.
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 8, 2013. 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.
A webcast will be available approximately two hours after the
conclusion of the live call. A replay of the call will be available
beginning approximately at 1 p.m. EDT
on May 8, 2013 through 11:59 p.m. EDT, May 15,
2013. To access the replay, interested investors should
call: (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (International) and
enter the Reply code: 55307557.
About Ormat Technologies
With over four decades of experience, Ormat Technologies, Inc.
is a leading geothermal company and the only vertically integrated
company solely engaged in geothermal and recovered energy
generation (REG). The company owns, operates, designs, manufactures
and sells geothermal and REG power plants primarily based on the
Ormat Energy Converter – a power generation unit that converts
low-, medium- and high-temperature heat into electricity. With over
82 U.S. patents, Ormat's power solutions have been refined and
perfected under the most grueling environmental conditions. Ormat's
flexible, modular solutions for geothermal power and REG are ideal
for the vast range of resource characteristics. The company has
engineered and built power plants, which it currently owns or has
supplied to utilities and developers worldwide, totaling
approximately 1600 MW of gross capacity. Ormat's current generating
portfolio of 611 MW (net) includes in the U.S.; in Guatemala; in Kenya; and, in Nicaragua.
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 11,
2013 and Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November
8, 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, 2013 and 2012
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March
31,
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
(In thousands, except per share
data)
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
|
71,102
|
|
$
|
82,247
|
Product
|
|
50,608
|
|
|
50,105
|
Total revenues
|
|
121,710
|
|
|
132,352
|
Cost
of revenues:
|
|
|
|
|
|
Electricity
|
|
56,937
|
|
|
57,931
|
Product
|
|
37,041
|
|
|
34,627
|
Total cost of revenues
|
|
93,978
|
|
|
92,558
|
Gross margin
|
|
27,732
|
|
|
39,794
|
Operating expenses:
|
|
|
|
|
|
Research and development
expenses
|
|
1,000
|
|
|
1,048
|
Selling and marketing
expenses
|
|
11,571
|
|
|
4,922
|
General and administrative
expenses
|
|
6,650
|
|
|
7,314
|
Write-off of unsuccessful
exploration activities
|
|
—
|
|
|
768
|
Operating income
|
|
8,511
|
|
|
25,742
|
Other income (expense):
|
|
|
|
|
|
Interest income
|
|
41
|
|
|
388
|
Interest expense,
net
|
|
(15,863)
|
|
|
(14,878)
|
Foreign currency translation
and transaction gains (losses)
|
|
1,682
|
|
|
14
|
Income attributable to sale
of tax benefits
|
|
3,532
|
|
|
2,517
|
Other non-operating expense,
net
|
|
1,417
|
|
|
(161)
|
Income (loss), before income taxes and equity
in
|
|
|
|
|
|
losses of investees
|
|
(680)
|
|
|
13,622
|
Income tax
provision
|
|
(1,217)
|
|
|
(5,457)
|
Equity in
losses of investees, net
|
|
—
|
|
|
(140)
|
Net income (loss)
|
|
(1,897)
|
|
|
8,025
|
Net income attributable to noncontrolling interest
|
|
(85)
|
|
|
(130)
|
Net income (loss) attributable to the Company's
stockholders
|
$
|
(1,982)
|
|
$
|
7,895
|
|
|
|
|
|
|
Earnings (loss) per share attributable to the
Company's stockholders — basic and diluted:
|
$
|
(0.04)
|
|
$
|
0.17
|
Weighted average number of shares used in
computation of earnings per share
attributable to the Company's
stockholders:
|
|
|
|
|
|
Basic
|
|
45,431
|
|
|
45,431
|
Diluted
|
|
45,431
|
|
|
45,437
|
Ormat
Technologies, Inc. and Subsidiaries
|
Condensed Consolidated Balance
Sheets
|
As of
March 31, 2013 and December 31, 2012
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
|
(In thousands)
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
57,627
|
|
$
|
66,628
|
Short-term bank deposit
|
|
|
3,015
|
|
|
3,010
|
Restricted cash, cash
equivalents and marketable securities
|
|
|
124,887
|
|
|
76,537
|
Receivables:
|
|
|
|
|
|
|
Trade
|
|
|
42,779
|
|
|
55,680
|
Related entity
|
|
|
397
|
|
|
373
|
Other
|
|
|
10,962
|
|
|
8,632
|
Due from Parent
|
|
|
364
|
|
|
311
|
Inventories
|
|
|
18,258
|
|
|
20,669
|
Costs and estimated earnings
in excess of billings on uncompleted contracts
|
|
|
10,135
|
|
|
9,613
|
Deferred income
taxes
|
|
|
1,238
|
|
|
637
|
Prepaid expenses and
other
|
|
|
30,151
|
|
|
34,144
|
Total current assets
|
|
|
299,813
|
|
|
276,234
|
Unconsolidated investments
|
|
|
2,789
|
|
|
2,591
|
Deposits
and other
|
|
|
39,670
|
|
|
36,187
|
Deferred
income taxes
|
|
|
52,939
|
|
|
53,989
|
Deferred
charges
|
|
|
35,217
|
|
|
35,351
|
Property,
plant and equipment, net
|
|
|
1,207,410
|
|
|
1,226,758
|
Construction-in-process
|
|
|
439,301
|
|
|
396,141
|
Deferred
financing and lease costs, net
|
|
|
31,748
|
|
|
31,371
|
Intangible
assets, net
|
|
|
34,681
|
|
|
35,492
|
Total assets
|
|
$
|
2,143,568
|
|
$
|
2,094,114
|
LIABILITIES AND EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
78,406
|
|
$
|
98,001
|
Deferred income
taxes
|
|
|
20,392
|
|
|
20,392
|
Billings in excess of costs
and estimated earnings on uncompleted contracts
|
|
|
21,749
|
|
|
25,408
|
Current portion of long-term
debt:
|
|
|
|
|
|
|
Limited and
non-recourse:
|
|
|
|
|
|
|
Senior secured notes
|
|
|
29,408
|
|
|
28,231
|
Other
|
|
|
15,494
|
|
|
11,453
|
Full recourse
|
|
|
28,760
|
|
|
28,649
|
Total current liabilities
|
|
|
194,209
|
|
|
212,134
|
Long-term
debt, net of current portion:
|
|
|
|
|
|
|
Limited and non-recourse:
|
|
|
|
|
|
|
Senior secured
notes
|
|
|
298,944
|
|
|
312,926
|
Other loans
|
|
|
281,930
|
|
|
242,815
|
Full recourse:
|
|
|
|
|
|
|
Senior unsecured
bonds
|
|
|
250,827
|
|
|
250,904
|
Other loans
|
|
|
78,882
|
|
|
82,344
|
Revolving credit lines
with banks (full recourse)
|
|
|
88,349
|
|
|
73,606
|
Liability
associated with sale of tax benefits
|
|
|
77,216
|
|
|
51,126
|
Deferred
lease income
|
|
|
65,696
|
|
|
66,398
|
Deferred
income taxes
|
|
|
45,118
|
|
|
45,059
|
Liability
for unrecognized tax benefits
|
|
|
7,795
|
|
|
7,280
|
Liabilities for severance pay
|
|
|
23,501
|
|
|
22,887
|
Asset
retirement obligation
|
|
|
19,665
|
|
|
19,289
|
Other
long-term liabilities
|
|
|
4,917
|
|
|
5,148
|
Total liabilities
|
|
|
1,437,049
|
|
|
1,391,916
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
The Company's
stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
|
46
|
|
|
46
|
Additional paid-in capital
|
|
|
733,683
|
|
|
732,140
|
Retained earnings
|
|
|
(39,717)
|
|
|
(37,735)
|
Accumulated other comprehensive income
|
|
|
609
|
|
|
651
|
|
|
|
694,621
|
|
|
695,102
|
Noncontrolling
interest
|
|
|
11,898
|
|
|
7,096
|
Total equity
|
|
|
706,519
|
|
|
702,198
|
Total liabilities and equity
|
|
$
|
2,143,568
|
|
$
|
2,094,114
|
Ormat
Technologies, Inc. and Subsidiaries
|
Reconciliation of EBITDA, Adjusted EBITDA and
Additional Cash Flows Information
|
For the
Three-Month Periods Ended March 31, 2013 and 2012
|
(Unaudited)
|
|
We
calculate EBITDA as net income before interest, taxes, depreciation
and amortization. We calculate Adjusted EBITDA as net income before
interest, taxes, depreciation and amortization, excluding
impairment of long-lived assets and one-time termination fee.
EBITDA and Adjusted EBITDA are 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 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, 2013 and 2012:
|
|
|
|
Three Months Ended March
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
Net cash
provided by operating activities
|
|
$
|
18,216
|
|
$
|
41,874
|
Adjusted
for:
|
|
|
|
|
|
|
Interest
expense, net (excluding amortization
|
|
|
|
|
|
|
of deferred financing
costs)
|
|
|
14,336
|
|
|
13,647
|
Interest
income
|
|
|
(41)
|
|
|
(388)
|
Income tax
provision (benefit)
|
|
|
1,217
|
|
|
5,457
|
Adjustments to reconcile net income or loss to net
cash
|
|
|
|
|
|
|
provided by operating activities (excluding
|
|
|
|
|
|
|
depreciation and amortization)
|
|
|
3,024
|
|
|
(9,105)
|
EBITDA
|
|
|
36,752
|
|
|
51,485
|
Termination fee
|
|
|
8,979
|
|
|
—
|
Adjusted
EBITDA
|
|
$
|
45,731
|
|
$
|
51,485
|
Net cash
used in investing activities
|
|
$
|
(98,244)
|
|
$
|
(62,333)
|
Net cash
provided by financing activities
|
|
$
|
71,027
|
|
$
|
5,153
|
Depreciation and amortization
|
|
$
|
23,137
|
|
$
|
24,744
|
SOURCE Ormat Technologies, Inc.