Ormat Technologies has added a news release to its Investor Relations
website.
Title: Ormat Technologies Reports 2013 Second Quarter Results
Date(s): 7-Aug-2013 12:36 AM
For a complete listing of our news releases, please visit:
http://investor.ormat.com/phoenix.zhtml?c=181999&p=irol-news&nyo=0
Quarterly revenues increased 20.5% to a record $152.7 million
Quarterly dividend payments are resumed
RENO, Nev., Aug. 6, 2013 (GLOBE NEWSWIRE) --Ormat Technologies, Inc.
(NYSE:ORA) today announced financial results for the second quarter of 2013.
Quarterly financial highlights compared to the same quarter last year:
Total revenues grew 20.5%,
Product revenue grew 44.9% and reached $65.0 million
Electricity revenue grew 7.1% and reached 87.7 million
Operating income grew 55.3% to $37.9 million
Net income attributable to the Company's shareholders amounted to $25.2
million or $0.55 per share compared to $8.6 million or $0.19 per share; Net
income attributable to the Company's shareholders, excluding a $3.6 million
after-tax gain related to oil and gas derivative instruments and a $3.6
million after-tax gain on the sale of the Momotombo plant in Nicaragua, was
$18.0 million compared to $4.8 million or $0.41 per share compared to $0.11
per share.
EBITDA grew 37.3% to $69.7 million
Operational highlights and recent developments:
Increased electricity generation by 12.9% to 1.1 million MWh, driven by
new capacity coming on line at Olkaria III Plant 2 in Kenya and McGinness
Hills in Nevada.
Exceeded the expected capacity in both McGinness Hills and Olkaria III
complex which are contributing additional 6 MW, bringing the total
generating capacity to 595 MW.
Accelerated the handover of the 22 MW Momotombo power plant in Nicaragua
that was scheduled for mid- 2014.
Signed the Sarulla project agreements and secured our role as a supplier
for approximately $254 million of equipment;
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: "We are pleased with the good operational performance and the strong
financial results achieved this quarter. In the electricity segment, our
focus on prudently expanding generation capacity is paying off as reflected
in the results. In May 2013, we commenced commercial operation of the 36 MW
Olkaria III Plant 2 in Kenya. The addition of Olkaria combined with the
impact of McGinness Hills, which commenced operations in July 2012, drove a
12.9% year-over-year increase in generation capacity in the quarter. As we
increase capacity, we are also improving operational efficiencies at our
plants attaining a gross margin of 33.1%."
"In the product segment a greater progress in a number of contracts
resulting in exceptionally strong quarterly revenues. Our backlog remains
strong and stands at approximately $170 million with approximately $90 to
$100 million for recognition in 2014."
Ms. Bronicki added, "For the full year 2013, we are updating our
electricity segment guidance, in light of the sale of the Momotombo plant,
which reduced our expected revenues for the full year by $11.0 million. We
expect the electricity segment revenues to be between $325 million and $335
million. In the product segment we are increasing our guidance to be between
$185 million and $195 million. The total revenue for the full year 2013 is
expected to be between $510 million to $530 million."
Financial Summary
For the three months ended June 30, 2013, total revenues increased 20.5% to
$152.7 million from $126.7 million in the second quarter of 2012. Product
revenues increased 44.9% to $65.0 million from $44.8 million in the three
months ended June 30, 2012. Electricity revenues increased 7.1% to $87.7
million from $81.9 million in the three months ended June 30, 2012.
Operating income for the three months ended June 30, 2013 was $37.9
million, compared to operating income of $24.4 million for the three months
ended June 30, 2012.
For the three months ended June 30, 2013, the company reported net income
attributable to the Company's shareholders of $25.2 million or $0.55 per
share, compared to net income of $8.6 million or $0.19 per share for the
three months ended June 30, 2012. Second quarter 2013 results include an
after-tax capital gain of $3.6 million from the sale of the Momotombo
geothermal power plant.
EBITDA for the three months ended June 30, 2013 were $69.7 million,
compared to $50.8 million for the three months ended June 30, 2012. The
reconciliation of GAAP net cash provided by operating activities to EBITDA
and Adjusted EBITDA and additional cash flows information is set forth below
in this release.
Net cash provided by operating activities was $20.0 million in the six
months ended June 30, 2013, compared to $72.1 million in the six months
ended June 30, 2012.
On August 6, 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 August 29, 2013 to
shareholders of record as of closing of business on August 19, 2013. The
company expects to pay a dividend of $0.04 per share in the next quarter.
As of June 30, 2013 cash, cash equivalents and a short-term bank deposit
were $31.9 million. In addition, as of June 30, 2013, the company had
available committed lines of credit with commercial banks aggregating $484.3
million, of which $185.7 million is unused.
Conference Call Details
Ormat will host a conference call to discuss its financial results and
other matters discussed in this press release at 10:00 A.M. EST on
Wednesday, August 7, 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 589 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 Six and Three-Month Periods Ended June 30, 2013 and 2012
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2013
2012
2013
2012
(In thousands, except per share data)
(In thousands, except per share data)
Revenues:
Electricity
$87,713
$81,882
$156,011
$161,225
Product
64,966
44,826
115,574
94,931
Total revenues
152,679
126,708
271,585
256,156
Cost of revenues:
Electricity
58,641
56,565
113,729
112,795
Product
43,657
31,818
80,698
66,445
Total cost of revenues
102,298
88,383
194,427
179,240
Gross margin
50,381
38,325
77,158
76,916
Operating expenses:
Research and development expenses
1,608
1,464
2,608
2,512
Selling and marketing expenses
3,777
4,570
15,286
9,406
General and administrative expenses
7,134
6,757
13,718
14,031
Write-off of unsuccessful exploration activities
--
1,151
--
1,919
Operating income
37,862
24,383
45,546
49,048
Other income (expense):
Interest income
87
336
128
724
Interest expense, net
(17,504)
(14,263)
(33,367)
(29,141)
Foreign currency translation and transaction gains (losses)
904
(1,756)
2,586
(1,742)
Income attributable to sale of tax benefits
5,783
2,589
9,315
5,106
Other non-operating expense, net
29
286
1,446
122
Income (loss), before income taxes and equity in losses of investees
27,161
11,575
25,654
24,117
* Income tax provision
(5,780)
(3,884)
(9,827)
(9,060)
Equity in losses of investees, net
9
(157)
9
(297)
Income from continuing operations
21,390
7,534
15,836
14,760
Discontinued operations:
Income from discontinued operations (including gain on disposal
of $3,646, $0, $3,646 and $0, respectively)
4,480
1,613
5,311
2,693
Income tax provision
(363)
(425)
(614)
(706)
Total income from discontinued operations
4,117
1,188
4,697
1,987
* Net income
25,507
8,722
20,533
16,747
Net income attributable to noncontrolling interest
(322)
(81)
(407)
(211)
Net income attributable to the Company's stockholders
$25,185
$8,641
$20,126
$16,536
Earnings per share attributable to the Company's stockholders -- basic
and diluted:
Income from continuing operations
$0.46
$0.16
$0.34
$0.32
Discontinued operations
0.09
0.03
0.10
0.04
Earnings (loss) per share attributable to the Company's stockholders
-- basic and diluted:
$0.55
$0.19
$0.44
$0.36
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
45,448
45,438
45,443
45,438
* The "income tax provision" for the six months ended June 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. The Company is currently evaluating the manner in
which the correction will be reported in the financial statements for the
first quarter of 2013.
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2013 and December 31, 2012
(Unaudited)
June 30,
December 31,
2013
2012
As Revised
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$28,893
$66,628
Short-term bank deposit
3,021
3,010
Restricted cash, cash equivalents and marketable securities
85,512
76,537
Receivables:
Trade
67,545
55,680
Related entity
419
373
Other
12,191
8,632
Due from Parent
468
311
Inventories
17,906
20,669
Costs and estimated earnings in excess of billings on uncompleted
contracts
16,323
9,613
Deferred income taxes
368
637
Prepaid expenses and other
35,839
34,144
Total current assets
268,485
276,234
Unconsolidated investments
3,524
2,591
Deposits and other
38,361
36,187
Deferred income taxes
17,729
21,283
Deferred charges
34,705
35,351
Property, plant and equipment, net
1,415,163
1,252,873
Construction-in-process
295,635
396,141
Deferred financing and lease costs, net
30,437
31,371
Intangible assets, net
33,861
35,492
Total assets
$2,137,900
$2,087,523
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses
$90,651
$98,001
Deferred income taxes
20,428
20,392
Billings in excess of costs and estimated earnings on uncompleted
contracts
10,970
25,408
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes
39,568
28,231
Other loans
18,214
11,453
Full recourse
28,760
28,649
Total current liabilities
208,591
212,134
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes
288,001
312,926
Other loans
277,349
242,815
Full recourse:
Senior unsecured bonds
250,751
250,904
Other loans
67,934
82,344
Revolving credit lines with banks (full recourse)
80,247
73,606
Liability associated with sale of tax benefits
70,479
51,126
Deferred lease income
64,938
66,398
Deferred income taxes
49,688
45,059
Liability for unrecognized tax benefits
8,354
7,280
Liabilities for severance pay
22,883
22,887
Asset retirement obligation
20,047
19,289
Other long-term liabilities
4,923
5,148
Total liabilities
1,414,185
1,391,916
Equity:
The Company's stockholders' equity:
Common stock
46
46
Additional paid-in capital
734,997
732,140
Retained earnings
(24,200)
(44,326)
Accumulated other comprehensive income
567
651
711,410
688,511
Noncontrolling interest
12,305
7,096
Total equity
723,715
695,607
Total liabilities and equity
$2,137,900
$2,087,523
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows
Information
For the Three-Month Periods Ended June 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 table
reconciles net cash provided by operating activities to EBITDA and Adjusted
EBITDA for the six and three-month periods ended June 30, 2013 and 2012:
Three Months Ended June 30,
Six Months Ended June 30,
2013
2012
2013
2012
(in thousands)
(in thousands)
Net cash provided by operating activities
$1,734
$30,205
$19,950
$72,079
Adjusted for:
Interest expense, net (excluding amortization
of deferred financing costs)
15,626
13,082
29,962
26,729
Interest income
(87)
(336)
(128)
(724)
Income tax provision
6,143
4,309
10,441
9,766
Adjustments to reconcile net income or loss to net cash
provided by operating activities (excluding
depreciation and amortization)
46,303
3,530
46,246
(5,575)
EBITDA
$69,719
$50,790
$106,471
$102,275
Interest, taxes, depreciation and amortization
attributable to the Company's equity interest
Termination fee
--
--
8,979
--
Adjusted EBITDA
$69,719
$50,790
$115,450
$102,275
Net cash used in investing activities
$(4,925)
$(4,695)
$(103,169)
$(67,028)
Net cash (used in) provided by financing activities
$(25,543)
$(43,406)
$45,484
$(38,253)
Depreciation and amortization
$22,747
$25,013
$45,884
$49,757
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.
------------------------------------------------------------
If you are unable to click on the link above, please copy and paste the URL
below into a web browser
http://investor.ormat.com/phoenix.zhtml?c=181999&p=irol-news&nyo=0
------------------------------------------------------------
Thomson Reuters Inc. 22 Thomson Place Boston, MA 02210
To unsubscribe from this JoinMail list visit
http://origin-www.corporate-ir.net/ireye/unsubscribe.zhtml?t=32764&a=ir-news.
-----
.