RENO, Nev., Nov. 5 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. today announced financial results for the third quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO) Third Quarter Results
For the three month period ended September 30, 2008, total revenues were $99.7 million, an increase of 25.5% from $79.5 million in the third quarter of 2007, consisting of a 12.1% increase in revenues from the Electricity Segment and a 71.0% increase in the Products Segment.
For the quarter, the Company reported net income of $15.9 million, or $0.35 per share of common stock (basic and diluted), as compared to net income of $15.8 million, or $0.41 per share of common stock (basic and diluted), for the same period a year ago. There were 45.5 million weighted average shares used in the computation of diluted earnings per share in the third quarter of 2008 and 38.3 million weighted average shares for the same quarter in 2007. Despite the significant increase in revenues, net income remained at a level similar to last year's primarily due to two factors: the weakening of the US dollar impacting activity outside the U.S. and non-recurring consulting and legal expenses related to an acquisition which did not materialize.
Commenting on the quarter's results, Dita Bronicki, Chief Executive Officer of Ormat, stated: "The increase in total revenue of 25.5% for the quarter reflects the continued growth of our company. Revenue from the Products Segment in the third quarter increased 71% in line with our expectation for the year. We also continued to increase our energy generation and moved closer to commercial operation of Phase II of the Olkaria III and North Brawley power plants. We expect to end the year with approximately 500 MW in our operating portfolio, an increase of approximately 100 MW for the year. For 2009 we expect an additional increase of approximately 70 MW, for which we have committed financing in place."
"The predictable cash flow from our fully contracted capacity, together with existing committed credit lines, allows us to continue executing on our growth plans despite the turbulent times within the global economic system."
Electricity revenues for the third quarter of 2008 were $68.8 million, an increase of 12.1% as compared to $61.4 million in the third quarter of 2007. The increase in electricity revenues is primarily attributable to a net increase in domestic generating capacity to 508,141 MWh for the quarter, up from 501,389 MWh in the same period of 2007. The increase in revenues is a result of new plants placed into service, but was partially offset by a generator failure in the Ormesa complex, the expected expiration of an "adder" paid under the Heber 2 power purchase agreement, and the shutdown of Steamboat 2/3 due to the replacement of its turbines with new turbines manufactured by us. Increased energy rates at the Puna project due to higher oil prices and increased generation in the Amatitlan and Momotombo projects also helped boost electricity revenues.
Revenues from the Products Segment for the three-month period ended September 30, 2008 were $30.9 million, compared to $18.1 million in the same period in 2007, an increase of 71.0%. The increase in product revenues was primarily attributable to the timing of the receipt of purchase orders, and the timing of revenue recognition.
Adjusted EBITDA for the third quarter of 2008 was $36.6 million, as compared to $38.0 million in the same quarter last year. Adjusted EBITDA includes operating income and depreciation and amortization totaling $1.3 million and $4.5 million for the quarters ended September 30, 2008 and 2007, respectively, related to the Company's unconsolidated investments. The reconciliation of GAAP net income to Adjusted EBITDA is set forth below in this release.
Cash, cash equivalents and marketable securities as of September 30, 2008 decreased to $38.1 million from $60.7 million as of December 31, 2007. In addition, we have committed bank lines of credits aggregating $310 million as of today.
On November 5, 2008, Ormat's Board of Directors approved the payment of a quarterly cash dividend of $0.05 per share pursuant to the Company's dividend policy, which targets an annual payout ratio of at least 20% of the Company's net income, subject to Board approval. The dividend will be paid on December 1, 2008 to shareholders of record as of the close of business on November 19, 2008.
Commenting on the outlook for 2008, Ms. Bronicki said, "With regard to our Electricity Segment, following our third quarter earnings results, we maintain our guidance for 2008 and expect electricity segment revenues for 2008 to be approximately $250 million. We also expect additional revenues of approximately $9 million from our share of electricity revenues generated by the Mammoth plant, the investment in which is accounted for under the equity method. Given our Products Segment results for the third quarter, we now anticipate revenues in this segment of between $75 and $80 million for the year being at the high end of previous guidance."
Nine-Month Results
For the nine-month period ended September 30, 2008, total revenues were $249.3 million, an increase of 10.7% from $225.3 million in the same period last year. Net income for the period was $38.1 million, or $0.87 per share, compared to $18.5 million, or $0.48 per share, in the same period in 2007. There were 43.9 million weighted average shares used in the computation of diluted earnings per share in the first nine months of 2008 and 38.2 million weighted average shares in the same period in 2007.
Electricity Segment revenues for the nine-month period ended September 30, 2008 were $190.1 million, an increase of 18.5% from $160.4 million in the same period a year ago. Products Segment revenues for the period were $59.2 million, a decrease of 8.7% from $64.8 million in the same period in 2007.
Adjusted EBITDA for the nine month period ended September 30, 2008 was $93.3 million dollars, as compared to $82.0 million in the same period a year ago. Adjusted EBITDA includes consolidated EBITDA and the Company's share in the operating income and depreciation and amortization totaling $4.1 million and $12.6 million for the nine months ended September 30, 2008 and 2007, respectively, related to the Company's unconsolidated investments. The reconciliation of GAAP net income to Adjusted EBITDA is set forth below in the release.
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. U.S. EST. on Thursday, November 6, 2008. The call will be available as a live, listen-only webcast at http://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 Event Calendar in the Investor Relations section of Ormat's website.
A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. A replay will be available from 12:00 p.m. EST on November 6, 2008 through 11:59 p.m. EST, November 13, 2008. Please call: (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and enter the code 68136404.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy- based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally- sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by more than 75 patents. Ormat currently operates the following geothermal and recovered energy-based power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna, Steamboat and OREG 1; in Guatemala -- Zunil and Amatitlan; in Kenya -- Olkaria; in Nicaragua -- Momotombo; and in New Zealand -- GDL.
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 5, 2008.
Ormat Technologies Contact:
Dita Bronicki
CEO
775-356-9029
Net income for the three months ended September 30, 2008 and 2007 includes stock-based compensation expense of $1.1 million, or $0.02 per share (basic and diluted) and $1.0 million, or $0.03 per share (basic and diluted), respectively.
Net income for the nine months ended September 30, 2008 and 2007 includes stock-based compensation expense of $3.2 million, or $0.07 per share (basic and diluted) and $2.6 million, or $0.07 per share (basic and diluted), respectively.
Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of September 30, 2008 and December 31, 2007 (Unaudited) September 30, December 31, 2008 2007 (in thousands) Assets Current assets: Cash and cash equivalents $38,143 $47,227 Marketable securities - 13,489 Restricted cash, cash equivalents and marketable securities 48,284 29,236 Receivables: Trade 68,600 46,519 Related entities 734 385 Other 12,572 9,008 Due to Parent 1,276 253 Inventories, net 12,196 10,312 Costs and estimated earnings in excess of billings on uncompleted contracts 4,057 3,608 Deferred income taxes 1,601 1,732 Prepaid expenses and other 10,508 7,059 Total current assets 197,971 168,828 Long-term marketable securities 2,848 2,762 Restricted cash, cash equivalents and marketable securities 3,919 5,605 Unconsolidated investments 29,916 30,560 Deposits and other 19,444 15,294 Deferred income taxes 11,932 12,427 Property, plant and equipment, net 825,069 743,386 Construction-in-process 429,660 234,014 Deferred financing and lease costs, net 13,034 14,044 Intangible assets, net 45,641 47,989 Total assets $1,579,434 $1,274,909 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $115,706 $75,836 Billings in excess of costs and estimated earnings on uncompleted contracts 21,371 4,818 Current portion of long-term debt: Limited and non-recourse 6,579 7,667 Full recourse - 1,000 Senior secured notes (non-recourse) 21,655 25,475 Due to Parent, including current portion of notes payable to Parent 32,652 31,695 Total current liabilities 197,963 146,491 Long-term debt, net of current portion: Limited and non-recourse 9,521 14,490 Senior secured notes (non-recourse) 266,136 273,840 Notes payable to Parent, net of current portion 9,600 26,200 Deferred lease income 74,774 76,198 Deferred income taxes 25,185 20,680 Liability for unrecognized tax benefits 5,817 5,330 Liabilities for severance pay 19,104 15,201 Asset retirement obligation 14,429 13,014 Total liabilities 622,529 591,444 Minority interest 120,340 65,382 Stockholders' equity: Common stock 45 41 Additional paid-in capital 699,883 513,109 Retained earnings 135,037 103,545 Accumulated other comprehensive income 1,600 1,388 Total stockholders' equity 836,565 618,083 Total liabilities and stockholders' equity $1,579,434 $1,274,909 Ormat Technologies, Inc. and Subsidiaries Reconciliation of adjusted EBITDA (Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and amortization, equity income of investees, minority interest and other non- operating expense (income). We calculate adjusted EBITDA to include operating income, depreciation and amortization, interest and taxes attributable to our equity investments in the Mammoth and Leyte Projects. EBITDA and adjusted EBITDA are not measurements of financial performance 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 income to EBITDA and adjusted EBITDA, for the three and nine-month periods ended September 30, 2008 and 2007:
Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 (in thousands) (in thousands) Net income $15,911 $15,762 $38,136 $18,468 Adjusted for: Equity in income of investees (372) (1,452) (1,319) (3,864) Minority interest (2,916) (1,280) (8,071) (1,585) Interest expense, net (including amortization of deferred financing costs) 2,267 5,813 6,967 17,629 Other non-operating income (expense) 1,049 (151) 2,242 176 Income tax provision 3,187 2,300 7,871 2,297 Depreciation and amortization 16,173 12,500 43,405 36,194 EBITDA 35,299 33,492 89,231 69,315 Equity in income of Mammoth-Pacific L.P. and Ormat Leyte 372 1,452 1,319 3,864 Depreciation, amortization, interest and taxes attributable to the Company's equity in Mammoth-Pacific L.P. and Ormat Leyte 899 3,024 2,736 8,776 Adjusted EBITDA $36,570 $37,968 $93,286 $81,955
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk,
