|By Marketwired .||
|August 7, 2013 06:27 PM EDT||
RENO, NV -- (Marketwired) -- 08/07/13 -- Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce its operating results for the second quarter ended June 30, 2013. This earnings release should be read in conjunction with Ram Power's financial statements, and management's discussion and analysis ("MD&A"), which are available on the Company's website at www.ram-power.com and have been posted on SEDAR at www.sedar.com.
The achievement of commercial operation of the Phase II expansion at San Jacinto in December 2012 continued to generate strong year-over-year revenue growth for the Company of $13.2 million for the three months ended June 30, 2013, compared to $7 million for the same period in 2012, an 88% increase. Adjusted EBITDA, as defined below, increased 240% to $11.2 million for the three months ended June 30, 2013 compared to $3.3 million for the three months ended June 30, 2012.
Significant accomplishments during the quarter and to date include:
- The Company reached an agreement on July 31, 2013, with its project lenders syndicate, led by the International Finance Corporation, to convert its Phase II Credit Facility construction loan for the San Jacinto-Tizate Project (the "Project") to a term loan amortizing over 11 years through 2024.
- The Company, together with Sinclair Knight Merz, finalized its resource remediation plan for the Project, entered into a drilling contract with ThermaSource Inc. to carry out the remediation program drilling, and commenced drilling on July 18, 2013.
- The Company has identified a buyer and is currently in discussions to finalize sale of the Geysers project by the end of 2013. Proceeds of the sale, net of selling costs, are expected to be approximately $6.4 million. The Company recognized an impairment loss of $16.5 million during the second quarter 2013 to reflect the current expected purchase price net of selling costs
The financial results of Ram Power for the three and six months ended June 30, 2013 are summarized below:
Three months ended Six months ended (all figures in U.S June 30, June 30, June 30, June 30, dollars) 2013 2012 2013 2012 ------------ ------------ ------------ ------------ Total revenue $ 13,201,640 $ 7,023,978 $ 25,100,370 $ 13,366,830 Other direct costs (1,455,511) (1,286,670) (2,703,067) (2,081,375) Depreciation and amortization of plant assets (6,126,158) (3,120,746) (12,259,520) (6,239,322) Gross profit 5,619,971 2,616,562 10,137,783 5,046,133 General and administrative expenses (2,727,422) (2,350,220) (5,604,245) (5,338,073) Operating income (loss) 2,846,724 (188,284) 4,570,871 (746,566) Loss on impairment (18,663,852) - (18,663,852) - Gain on warrant liability valuation (1,711,229) (3,918,935) (3,015,122) (3,794,626) Loss on prepayment option 1,556,974 - 1,556,974 - Other loss 1,863,263 7,823,994 3,721,599 7,598,654 Deferred taxes - - - - Total loss and comprehensive loss (19,877,906) (120,365) (27,806,247) (2,494,740) Total loss and comprehensive loss per share $ (0.07) $ (0.00) $ (0.09) $ (0.01) As at June 30, December 31, 2013 2012 ------------ ------------ Total assets $472,890,488 $506,823,848 Long-term debt 248,312,407 210,591,894 Total liabilities 286,225,869 294,542,373 Cash 31,800,175 51,330,351 Working capital 19,807,492 (11,325,167)
For the fiscal quarter ended June 30, 2013, the Company reported revenue of $13.2 million and a total loss and comprehensive loss of $19.9 million, or $(0.07) per share, compared to revenue of $7 million and a total loss and comprehensive loss of $0.1 million, or less than $(0.01) per share, for the same period in 2012. The 88% increase in revenue resulted primarily from commencement of San Jacinto Phase II operations in December 2012. Adjusted EBITDA, as defined below, increased $7.9 million to $11.2 million for the quarter ended June 30, 2013 compared to $3.3 million for the quarter ended June 30, 2012, which was primarily the result of $6.2 million increase in revenue from San Jacinto operations.
For the six months ended June 30, 2013, the Company reported revenue of $25.1 million and a total loss and comprehensive loss of $27.8 million, or $(0.09) per share, compared to revenue of $13.4 million and a total loss and comprehensive loss of $2.5 million, or $(0.01) per share, for the same period in 2012. The 88% increase in revenue resulted primarily from commencement of San Jacinto Phase II operations in December 2012. Adjusted EBITDA, as defined below, increased $12.7 million to $18.4 million for the six months ended June 30, 2013 compared to $5.8 million for the six months ended June 30, 2012, which was primarily the result of $11.7 million increase in revenue from San Jacinto operations.
For the six months ended June 30, 2013, the Company had net operating cash inflows of $1.7 million, net investing cash outflows of $10.1 million and net financing cash outflows of $11.1 million, which combined for a net decrease in cash of $19.5 million. The Company expended $12.7 million for additions to property, plant and equipment and geothermal properties, including $9.6 million for Phase II expansion of the San Jacinto project and $3 million for the costs related San Jacinto drilling and remediation activities. At June 30, 2013, the Company had cash of $31.8 million, of which $30.9 million was held for current use in the San Jacinto project.
"With the conversion of the Phase II Construction Loan to a term loan behind us, we are now focused on the remediation plan at San Jacinto," stated Antony Mitchell, Executive Chairman of Ram Power. "We are confident that the drilling plan and our team of SKM and PENSA will result in successful remediation efforts, and coupled with our disposition of assets outside of Nicaragua, will allow us to increase our cash resources to further increase shareholder value."
Ram Power will hold its earnings call to discuss the quarter ending June 30, 2013 financial and operating results on Thursday, August 8, 2013 at 10:00 am EDT (7:00 am PDT). To listen to the call, please dial 1- 866-696-5910 by entering the participant pass code 9816348, or on the web at http://bell.media-server.com/m/p/sw85cgpo
About Ram Power, Corp.
Ram Power is a renewable energy company engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America.
USE OF NON-GAAP MEASURES
Certain non-GAAP measures referenced in this news release have no standardized meaning under International Financial Reporting Standards ("IFRS") and, therefore, are unlikely to be comparable to similar measures presented by other issuers. Where we reference non-GAAP measures, we provide definitions. For example, EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. EBITDA is most directly comparable to the GAAP measure operating income or loss, except that depreciation and amortization of plant assets are included and other gains and losses are excluded in measuring operating income or loss, but depreciation and amortization expenses are excluded and other gains and losses are included in measuring EBITDA. Accordingly, where EBITDA measures are disclosed by the Company, they equal operating income or loss plus depreciation and amortization of plant assets and other gains, less other losses. Although a non-GAAP measure, management believes users of the Company's financial information find EBITDA and EBITDA adjusted to exclude non-cash stock compensation expense and credits, warrant liability gains and losses, and prepayment option gains and losses ("Adjusted EBITDA") useful in assessing the Company's financial performance. In the Company's earnings releases, consolidated financial statements and MD&As, unless otherwise noted, all financial data is prepared in accordance with IFRS.
This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenue, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this news release, including such forward-looking information, is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power assumes no obligation to update or revise such information to reflect new events or circumstances.