Ormat Technologies has added a news release to its Investor Relations
website.
Title: Ormat Technologies Reports 2013 Third Quarter Results
Date(s): 5-Nov-2013 5:36 PM
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Electricity revenues increased 14.7% to $89.0 million
Company raises revenue guidance for 2013
RENO, Nev., Nov. 5, 2013 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc.
(NYSE:ORA) today announced financial results for the third quarter of 2013.
Quarterly financial highlights compared to the same quarter last year:
Electricity revenue increased by 14.7% to $89.0 million;
Gross margin grew 75 basis points to 30.4%;
Operating income reached $29.8 million compared to $12.1 million;
Net income attributable to the Company's shareholders was $13.0 million or
$0.28 per share (diluted), compared to a net loss of $0.6 million or $0.01
per share (diluted);
Adjusted EBITDA grew 25.0% to $60.3 million; and
Declared dividend of $0.04 per share
Operational highlights and recent developments:
Increased electricity generation by 5.0% to 985,531 MWh, driven by new
capacity coming on line at Olkaria III Plant 2 in Kenya, and increased
generation at the McGuiness Hills plant;
Successfully completed the world's largest binary geothermal plant, the
100 MW Ngatamariki in New Zealand, under a $142.0 million EPC contract;
Secured a 10-year Power Purchase Agreement (PPA) with the Southern
California Public Power Authority to supply power from the Heber 1
geothermal plant in California beginning December 16, 2015. The new PPA
replaces the Standard Offer Contract No. 4 (SO#4), which is tied to natural
gas prices, with fixed-price contract at a higher rate;
Entered into a joint development agreement with eBay to develop a 5 MW
recovered energy generation power plant in Utah to supply cleaner
electricity to eBay's new data center; and
Signed an agreement for a greenfield development of the Hu'u Dompu
geothermal prospect in Indonesia
Dita Bronicki, Chief Executive Officer of Ormat, stated: "During the third
quarter, we continued to deliver strong financial and operational results.
In the electricity segment, we benefitted from the first full quarter of
commercial operation of the Olkaria III Plant 2 in Kenya, which helped drive
a 5.0% increase in generation. In addition, gross margin increased in the
electricity segment to 31.1% due to the contribution of the new plants added
to our portfolio in the past two years and to our continued focus on
improving operational efficiencies at our existing plants. Looking ahead, we
are poised to continue these positive trends and we aim to bring new
capacity on line and replace legacy PPAs with more favorable agreements."
"A substantial milestone in the product segment is the completion of the
100MW Ngatamariki geothermal power plant. The completion of the plant in
less than 24 months from the award with generation at 104% of its designed
output is a further testament to our execution capability and the
suitability of our technology to large geothermal facilities. Looking
forward, our backlog remains strong as we secured new orders in the third
quarter 2013 and stands at approximately $173.0 million with more than
$120.0 million expected to be recognized in 2014."
Ms. Bronicki concluded, "We are raising our 2013 guidance and expect total
revenue to be between $525.0 million to $535.0 million with electricity
segment revenues to be approximately $330.0 million and product segment
revenues to be between $195.0 million and $205.0 million."
Financial Summary
For the three months ended September 30, 2013, total revenues reached
$130.7 million from $132.3 million in the third quarter of 2012, a decrease
of 1.2%. Electricity revenues increased 14.7% to $89.0 million from $77.6
million in the three months ended September 30, 2012. Product revenues
decreased 23.6% to $41.8 million from $54.7 million in the three months
ended September 30, 2012.
Operating income for the three months ended September 30, 2013 was $29.8
million, compared to $12.1 million for the three months ended September 30,
2012. Third quarter 2012 results included a $7.3 million impairment loss
related to the OREG 4 recovered energy generation power plant.
For the three months ended September 30, 2013, the Company reported net
income attributable to the Company's shareholders of $13.0 million or $0.28
per share (diluted) compared to net loss of $0.6 million or $0.01 per share
(diluted) for the three months ended September 30, 2012.
Adjusted EBITDA for the three months ended September 30, 2013 was $60.3
million, compared to $48.2 million for the three months ended September 30,
2012, an increase of 25.0%. The reconciliation of GAAP net cash provided by
(used in) operating activities and net income to EBITDA and Adjusted EBITDA
and additional cash flows information is set forth below in this release.
Net cash provided by operating activities was $32.2 million in the nine
months ended September 30, 2013, compared to $62.4 million in the nine
months ended September 30, 2012.
On November 5, 2013, ORMAT's Board of Directors approved a payment of a
quarterly dividend of $0.04 per share pursuant to the Company's dividend
policy, which targets an annual payoff ratio of at least 20% of the
Company's net income. The dividend will be paid on December 4, 2013 to
shareholders of record as of closing of business on November 20, 2013.
As of September 30, 2013 cash, cash equivalents were $35.4 million. In
addition, as of September 30, 2013, the Company had $145.2 million of unused
corporate borrowing capacity under existing lines of credit with different
commercial banks.
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. EST on Wednesday,
November 6, 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.
An archive of the webcast will be available approximately 10 minutes after
the conclusion of the live call.
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 has over 500
employees in the United States and about 600 overseas. Ormat's flexible,
modular solutions for geothermal power and REG are ideal for the vast range
of resource characteristics. The company has engineered, manufactured and
constructed 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 595 MW (net) is spread
globally in the U.S., Guatemala and Kenya.
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.
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 Nine and Three-Month Periods Ended September 30, 2013 and 2012
(Unaudited)
Three Months Ended
Nine Months Ended
September 30
September 30
2013
2012
2013
2012
(In thousands, except
(In thousands, except
per share data)
per share data)
Revenues:
Electricity
$88,994
$77,612
$245,005
$238,837
Product
41,755
54,685
157,329
149,616
Total revenues
130,749
132,297
402,334
388,453
Cost of revenues:
Electricity
61,356
59,924
175,085
172,785
Product
29,637
42,130
110,335
108,575
Total cost of revenues
90,993
102,054
285,420
281,360
Gross margin
39,756
30,243
116,914
107,093
Operating expenses:
Research and development expenses
838
1,436
3,446
3,948
Selling and marketing expenses
2,575
3,346
17,861
12,752
General and administrative expenses
6,546
6,132
20,264
20,163
Impairment charge
7,264
--
7,264
Write-off of unsuccessful exploration activities
--
--
--
1,919
Operating income
29,797
12,065
75,343
61,047
Other income (expense):
Interest income
742
280
870
1,004
Interest expense, net
(18,459)
(15,400)
(51,826)
(44,541)
Foreign currency translation and transaction gains (losses)
1,258
615
3,844
(1,127)
Income attributable to sale of tax benefits
5,027
2,311
14,342
7,417
Other non-operating expense, net
137
215
1,583
344
Income before income taxes and equity in losses of investees
18,502
86
44,156
24,144
* Income tax provision
(5,201)
(1,088)
(15,028)
(10,148)
Equity in losses of investees, net
(158)
(1,245)
(149)
(1,542)
Income (loss) from continuing operations
13,143
(2,247)
28,979
12,454
Discontinued operations:
Income from discontinued operations (including gain on disposal of
$3,646, $0, $3,646 and $0, respectively)
--
2,123
5,311
4,875
Income tax provision
--
(391)
(614)
(1,097)
Total income from discontinued operations
--
1,732
4,697
3,778
* Net income (loss)
13,143
(515)
33,676
16,232
Net income attributable to noncontrolling interest
(193)
(67)
(600)
(278)
Net income (loss) attributable to the Company's stockholders
$12,950
$(582)
$33,076
$15,954
Earnings (loss) per share attributable to the Company's stockholders:
Basic:
Income (loss) from continuing operations
$0.29
$(0.05)
$0.62
$0.27
Discontinued operations
--
0.04
0.10
0.08
Net Income (loss)
$0.29
$(0.01)
$0.72
$0.35
Diluted:
Income (loss) from continuing operations
$0.28
$(0.05)
$0.62
$0.27
Discontinued operations
--
0.04
0.10
0.08
Net Income (loss)
$0.28
$(0.01)
$0.72
$0.35
Weighted average number of shares used in computation of earnings per
share attributable to the Company's stockholders:
Basic
45,438
45,431
45,433
45,431
Diluted
45,494
45,431
45,454
45,438
* The "income tax provision" for the nine months ended September 30 2013
includes a correction of $3.1 million (increase) for the three-month period
ended March 31, 2013 previously reported by the Company, and a corresponding
reduction in net income.
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of September 30, 2013 and December 31, 2012
(Unaudited)
September 30,
December 31,
2013
2012
As Revised
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$ 35,435
$ 66,628
Short-term bank deposit
--
3,010
Restricted cash, cash equivalents and marketable securities
84,197
76,537
Receivables:
Trade
60,526
55,680
Related entity
442
373
Other
24,643
8,632
Due from Parent
373
311
Inventories
20,396
20,669
Costs and estimated earnings in excess of billings on uncompleted
contracts
36,201
9,613
Deferred income taxes
162
637
Prepaid expenses and other
36,724
34,144
Total current assets
299,099
276,234
Unconsolidated investments
5,419
2,591
Deposits and other
31,110
36,187
Deferred income taxes
15,966
21,283
Deferred charges
34,635
35,351
Property, plant and equipment, net
1,383,353
1,252,873
Construction-in-process
335,915
396,141
Deferred financing and lease costs, net
29,806
31,371
Intangible assets, net
33,032
35,492
Total assets
$ 2,168,335
$ 2,087,523
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses
$ 83,751
$ 98,001
Deferred income taxes
20,428
20,392
Billings in excess of costs and estimated earnings on uncompleted
contracts
12,708
25,408
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes
30,059
28,231
Other loans
18,288
11,453
Full recourse
28,875
28,649
Total current liabilities
194,109
212,134
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes
286,786
312,926
Other loans
272,710
242,815
Full recourse:
Senior unsecured bonds
250,674
250,904
Other loans
64,414
82,344
Revolving credit lines with banks (full recourse)
123,288
73,606
Liability associated with sale of tax benefits
65,402
51,126
Deferred lease income
64,217
66,398
Deferred income taxes
52,233
45,059
Liability for unrecognized tax benefits
8,878
7,280
Liabilities for severance pay
23,642
22,887
Asset retirement obligation
20,436
19,289
Other long-term liabilities
4,576
5,148
Total liabilities
1,431,365
1,391,916
Equity:
The Company's stockholders' equity:
Common stock
46
46
Additional paid-in capital
737,125
732,140
Retained earnings
(13,066)
(44,326)
Accumulated other comprehensive income
527
651
724,632
688,511
Noncontrolling interest
12,338
7,096
Total equity
736,970
695,607
Total liabilities and equity
$ 2,168,335
$ 2,087,523
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows
Information
For the Nine and Three-Month Periods Ended September 30, 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 tables reconcile net cash provided by (used in) operating
activities and net income to EBITDA and Adjusted EBITDA for the nine and
three-month periods ended September 30, 2013 and 2012:
Three Months Ended September 30
Nine Months Ended September 30
2013
2012
2013
2012
(in thousands)
(in thousands)
Net cash provided by (used in) operating activities
$ 12,276
$ (9,695)
$ 32,226
$ 62,384
Adjusted for:
Interest expense, net (excluding amortization of deferred financing
costs)
17,405
14,202
47,367
40,931
Interest income
(742)
(280)
(870)
(1,004)
Income tax provision
5,201
1,479
15,642
11,245
Adjustments to reconcile net income or loss to net cash provided by
operating activities (excluding depreciation and amortization)
26,115
35,236
72,361
29,661
EBITDA
$ 60,255
$ 40,942
$ 166,726
$ 143,217
Impairment charge
--
7,264
--
7,264
Termination fee
--
--
8,979
--
Adjusted EBITDA
$ 60,255
$ 48,206
$ 175,705
$ 150,481
Net cash provided by (used in) investing activities
$ (25,029)
$ 13,417
$ (128,198)
$ (53,611)
Net cash provided by (used in) financing activities
$ 19,295
$ (32,882)
$ 64,779
$ (71,135)
Three Months Ended September 30
Nine Months Ended September 30
2013
2012
2013
2012
(in thousands)
(in thousands)
Net income (loss)
$ 13,143
$ (515)
$ 33,676
$ 16,232
Adjusted for:
Interest expense, net (including amortization of deferred financing
costs)
17,717
15,120
50,956
43,537
Income tax provision
5,201
1,479
15,642
11,245
Depreciation and amortization
24,194
24,858
66,452
72,203
EBITDA
$ 60,255
$ 40,942
$ 166,726
$ 143,217
Impairment charge
--
7,264
--
7,264
Termination fee
--
--
8,979
--
Adjusted EBITDA
$ 60,255
$ 48,206
$ 175,705
$ 150,481
CONTACT: Ormat Technologies Contact:
Dita Bronicki
CEO
775-356-9029
dbronicki@ormat.com
Investor Relations Contact:
Todd Fromer/Rob Fink
KCSA Strategic Communications
212-896-1215 (Todd) /212-896-1206 (Rob)
tfromer@kcsa.com / rfink@kcsa.com
Ormat Technologies, Inc.
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