Ormat Technologies has added a news release to its Investor Relations
website.
Title: Ormat Technologies Reports 2013 Fourth Quarter and Year End Results
Date(s): 25-Feb-2014 8:40 PM
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Net Income Attributable to Company's Shareholders of $0.91 Per Share for
the Full Year
Record Adjusted EBITDA Reached $227M
RENO, Nev., Feb. 25, 2014 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc.
(NYSE:ORA) today announced financial results for the fourth quarter and full
year ended December 31, 2013.
Highlights for the year and recent developments:
Total revenues for the year increased 6.3% to $533.2 million;
Record revenues in the product segment: 8.9% increase to $203.5 million;
Record adjusted EBITDA for the year: 22.3% increase to $227.1 million;
Fourth quarter adjusted EBITDA increased 45.8% to $51.4 million
Gross margin increased from 25.7% to 30.0%;
Electricity generation increased 7.9% to 4.3 million MWh, driven by
contributions from Olkaria III Plant 2, McGinness Hills, Jersey Valley and
Tuscarora;
Net income attributable to the company's shareholders of $41.2 million or
$0.91 per share;
Declared dividend of $0.06 per share for fourth quarter 2013;
Completed 58 MW expansion of the Olkaria III geothermal complex in Kenya
bringing the complex's total generating capacity to 110 MW;
Completed the 16 MW Don A. Campbell geothermal power plant in Nevada;
Completed the acquisition of the Platanares project in Honduras and
released McGinness Hills phase 2 for construction; and,
Secured Purchase Agreements (PPAs) for Heber 1 in California and for
Mammoth G1 and G3 to replace the Standard Offer Contract No. 4 (SO#4), which
are tied to natural gas prices, with fixed-price contracts;
Dita Bronicki, chief executive officer of Ormat, stated: "We are very
pleased to deliver strong financial results marking our return to earnings
growth while making significant progress developing a geographically
balanced portfolio of geothermal projects. During 2013 and early 2014, we
added 70 MW of new generating capacity from three new geothermal power
plants bringing our total portfolio to 626 MW.
"In the product segment, we've received a robust flow of orders for our
unique power solutions resulting in record revenues of $203.5 million.
During 2013 and the first part of 2014, we successfully completed nine power
plants with approximately 270 MW of gross generating capacity. The plants,
which we completed for our clients and for our own portfolio, significantly
contributed to the growth of the geothermal industry. Our strength in the
market and appetite for continued growth will continue to support our
backlog currently standing at $165.0 million, excluding the Sarulla project
supply contract. With growing demand for geothermal energy across the globe
and financial incentives in place to foster its development, we continue to
be optimistic about Ormat's future growth."
Bronicki added, "We expect our 2014 electricity revenues to be between $370
million and $380 million and our product segment revenues to be between $170
million and $180 million, including $36 million revenue from the Sarulla
project."
Financial Summary
Annual Results
For the year ended December 31, 2013, total revenues increased 6.3% from
$501.8 million in 2012 to $533.2 million in 2013. Product revenues increased
8.9% to $203.5 million, up from $186.9 million in the year ended December
31, 2012. The increase in product revenues reflects the increase in new
customer orders that we secured in 2012 and 2013. Electricity revenues
increased 4.7% from $314.9 million in 2012 to $329.7 in 2013. The increase
in electricity revenues was primarily due to a revenue contribution of $37.3
million from Olkaira III Plant 2, McGinness Hills and Tuscarora. The
increase was offset by an $11.0 million decrease resulting from the natural
gas prices; a $2.8 million mark to market loss compared to a $2.3 million
mark to market gain on derivative contracts on oil and natural gas prices;
reduced generation in some power plants; and a reduction in energy rates at
Puna and Amatitlan power plants.
Operating income for the year ended December 31, 2013 was $97.0 million,
compared to an operating loss of $159.9 million for the year ended December
31, 2012.
For the year ended December 31, 2013, the company reported net income
attributable to the company's shareholders of $41.2 million or $0.91 per
share compared to net loss of $213.0 million or $4.69 per share which
included an impairment charge of $236.4 million for the year ended December
31, 2012.
Adjusted EBITDA for the year ended December 31, 2013 was $227.1 million,
compared to $185.7 million for the year ended December 31, 2012. 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 $86.8 million in the year
ended December 31, 2013, compared to $89.5 million in the year ended
December 31, 2012.
As of December 31, 2013 cash, cash equivalents were $57.4 million. In
addition, as of December 31, 2013, the company had $160.0 million of unused
corporate borrowing capacity under existing lines of credit with different
commercial banks.
Fourth Quarter Results
For the three months ended December 31, 2013, total revenues reached $130.9
million from $113.3 million in the fourth quarter of 2012, an increase of
15.5%. Electricity revenues increased 11.4% to $84.7 million from $76.1
million in the three months ended December 31, 2012. Product revenues
increased 23.9% to $46.2 million from $37.3 million in the three months
ended December 31, 2012.
For the three months ended December 31, 2013, the company reported net
income attributable to the company's shareholders of $8.2 million or $0.18
per share compared to net loss of $229.0 million or $5.04 per share which
included an impairment charge of $229.1 million for the three months ended
December 31, 2012.
Adjusted EBITDA for the three months ended December 31, 2013 was $51.4
million, compared to $35.2 million for the three months ended December 31,
2012. 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.
On February 25, 2014, ORMAT's Board of Directors approved a payment of a
quarterly dividend of $0.06 per share which is in addition to a payment of
$0.08 per share paid in 2013, 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 March 27, 2014 to shareholders of
record as of closing of business on March 13, 2014. The dividend payment was
resumed in the second quarter of 2013 after satisfying the clawback
provision resulted from 2012 dividend payment, in compliance with the
requirement of the covenants in our financing documents. In addition, the
company expects to pay dividends of $0.05 per share in the next three
quarters.
Conference Call Details
Ormat will host a conference call to discuss its financial results and
other matters discussed in this press release at 10 a.m. EST on Wednesday,
February 26, 2014. 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 website. 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
77 U.S. patents, Ormat's power solutions have been refined and perfected
under the most grueling environmental conditions. Ormat has 480 employees in
the United States and about 640 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 over 1,750 MW of gross
capacity. Ormat's current generating portfolio of 626 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 Three-Month Periods and Years Ended December 31, 2013 and 2012
(Unaudited)
Three Months Ended
December 31
Year Ended
December 31
2013
2012
2013
2012
As Revised
(In thousands, except per share data)
(In thousands, except per share data)
Revenues:
Electricity
$ 84,742
$ 76,057
$ 329,747
$ 314,894
Product
46,163
37,263
203,492
186,879
Total revenues
130,905
113,320
533,239
501,773
Cost of revenues:
Electricity
57,789
64,630
232,874
237,415
Product
30,212
26,771
140,547
135,346
Total cost of revenues
88,001
91,401
373,421
372,761
Gross margin
42,904
21,919
159,818
129,012
Operating expenses:
Research and development expenses
1,519
2,160
4,965
6,108
Selling and marketing expenses
6,752
2,966
24,613
15,718
General and administrative expenses
8,924
7,903
29,188
28,066
Impairment charge
229,113
--
236,377
Write-off of unsuccessful exploration activities
4,094
720
4,094
2,639
Operating income (loss)
21,615
(220,943)
96,958
(159,896)
Other income (expense):
Interest income
462
197
1,332
1,201
Interest expense, net
(21,950)
(19,528)
(73,776)
(64,069)
Foreign currency translation and transaction gains
1,241
1,369
5,085
242
Income attributable to sale of tax benefits
5,603
2,710
19,945
10,127
Other non-operating income, net
9
246
1,592
590
Income (loss), before income taxes and equity in losses of investees
6,980
(235,949)
51,136
(211,805)
Income tax benefit (provision)
1,476
8,321
(13,552)
(1,827)
Equity in losses of investees, net
(101)
(980)
(250)
(2,522)
Income (loss) from continuing operations
8,355
(228,608)
37,334
(216,154)
Discontinued operations:
Income (loss) from discontinued operations (including gain on disposal
of $3,646, $0, $3,646 and $0, respectively)
--
(64)
5,311
4,811
Income tax provision
--
(167)
(614)
(1,264)
Total income (loss) from discontinued operations
--
(231)
4,697
3,547
Net income (loss)
8,355
(228,839)
42,031
(212,607)
Net income attributable to noncontrolling interest
(193)
(136)
(793)
(414)
Net income (loss) attributable to the Company's stockholders
$ 8,162
$ (228,975)
$ 41,238
$ (213,021)
Earnings (losses) per share attributable to the Company's
stockholders:
Basic:
Income (loss) from continuing operations
$ 0.18
$ (5.03)
$ 0.81
$ (4.77)
Discontinued operations
--
(0.01)
0.10
0.08
Net Income (loss)
$ 0.18
$ (5.04)
$ 0.91
$ (4.69)
Diluted:
Income (loss) from continuing operations
$ 0.18
$ (5.03)
$ 0.81
$ (4.77)
Discontinued operations
--
(0.01)
0.10
0.08
Net Income (loss)
$ 0.18
$ (5.04)
$ 0.91
$ (4.69)
Weighted average number of shares used in computation of earnings
(losses) per share
attributable to the Company's stockholders:
Basic
45,461
45,431
45,440
45,431
Diluted
45,610
45,431
45,475
45,431
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2013 and December 31, 2012
(Unaudited)
December 31,
December 31,
2013
2012
As Revised
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$ 57,354
$ 66,628
Short-term bank deposit
--
3,010
Restricted cash, cash equivalents and marketable securities
51,065
76,537
Receivables:
Trade
95,365
55,680
Related entity
442
373
Other
11,049
8,632
Due from Parent
382
311
Inventories
22,289
20,669
Costs and estimated earnings in excess of billings on uncompleted
contracts
21,217
9,613
Deferred income taxes
523
637
Prepaid expenses and other
29,654
34,144
Total current assets
289,340
276,234
Unconsolidated investments
7,076
2,591
Deposits and other
22,114
36,187
Deferred income taxes
891
21,283
Deferred charges
36,738
35,351
Property, plant and equipment, net
1,452,336
1,252,873
Construction-in-process
288,827
396,141
Deferred financing and lease costs, net
30,178
31,371
Intangible assets, net
31,933
35,492
Total assets
$ 2,159,433
$ 2,087,523
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses
$ 98,047
$ 98,001
Deferred income taxes
--
20,392
Billings in excess of costs and estimated earnings on uncompleted
contracts
7,903
25,408
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes
31,137
28,231
Other loans
20,377
11,453
Full recourse
28,875
28,649
Total current liabilities
186,339
212,134
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes
270,310
312,926
Other loans
311,078
242,815
Full recourse:
Senior unsecured bonds
250,596
250,904
Other loans
53,467
82,344
Revolving credit lines with banks (full recourse)
112,017
73,606
Liability associated with sale of tax benefits
60,985
51,126
Deferred lease income
63,496
66,398
Deferred income taxes
55,035
45,059
Liability for unrecognized tax benefits
4,950
7,280
Liabilities for severance pay
23,841
22,887
Asset retirement obligation
18,679
19,289
Other long-term liabilities
3,529
5,148
Total liabilities
1,414,322
1,391,916
Equity:
The Company's stockholders' equity:
Common stock
46
46
Additional paid-in capital
738,929
732,140
Retained earnings
(6,722)
(44,326)
Accumulated other comprehensive income
487
651
732,740
688,511
Noncontrolling interest
12,371
7,096
Total equity
745,111
695,607
Total liabilities and equity
$ 2,159,433
$ 2,087,523
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows
Information
For the Three-Month Periods and Years Ended December 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 tables reconcile net cash provided by (used in) operating
activities and net income to EBITDA and Adjusted EBITDA for the three-month
periods and years ended December 31, 2013 and 2012:
Three Months Ended
December 31
Year Ended
December 31
2013
2012
2013
2012
As revised
(in thousands)
(in thousands)
Net cash provided by operating activities
$ 54,534
$ 27,087
$ 86,760
$ 89,471
Adjusted for:
Interest expense, net (excluding amortization of deferred financing
costs)
20,310
16,780
67,677
57,711
Interest income
(462)
(197)
(1,332)
(1,201)
Income tax provision
(1,476)
(8,154)
14,166
3,091
Adjustments to reconcile net income or loss to net cash provided by
(used in) operating activities (excluding depreciation and amortization)
(24,158)
(229,399)
48,203
(199,738)
EBITDA
$ 48,748
$ (193,883)
$ 215,474
$ (50,666)
Impairment charge
--
229,113
--
236,377
Termination fees
2,625
--
11,604
--
Adjusted EBITDA
$ 51,373
$ 35,230
$ 227,078
$ 185,711
Net cash used in investing activities
$ (28,955)
$ (47,179)
$ (157,153)
$ (100,790)
Net cash (used in) provided by financing activities
$ (3,660)
$ 49,196
$ 61,119
$ (21,939)
Three Months Ended
December 31
Year Ended
December 31
2013
2012
2013
2012
As revised
(in thousands)
(in thousands)
Net income (loss)
$ 8,355
$ (228,839)
$ 42,031
$ (212,607)
Adjusted for:
Interest expense, net (including amortization of deferred financing
costs)
21,488
19,331
72,444
62,868
Income tax provision (benefit)
(1,476)
(8,154)
14,166
3,091
Depreciation and amortization
20,381
23,779
86,833
95,982
EBITDA
$ 48,748
$ (193,883)
$ 215,474
$ (50,666)
Impairment charge
--
229,113
--
236,377
Termination fees
2,625
--
11,604
--
Adjusted EBITDA
$ 51,373
$ 35,230
$ 227,078
$ 185,711
CONTACT: Ormat Technologies:
Dita Bronicki
CEO
775-356-9029
dbronicki@ormat.com
Investor Relations:
Rob Fink/Brad Nelson
KCSA Strategic Communications
212-896-1206 (Fink) /212-896-1249 (Nelson)
rfink@kcsa.com / bnelson@kcsa.com
Ormat Technologies, Inc.
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