Maxim Power Corp.

Maxim Power Corp.

November 07, 2007 18:45 ET

Maxim Power Corp. ("MAXIM") Announces Third Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Nov. 7, 2007) - MAXIM (TSX:MXG) is pleased to announce the release of financial and operating results for its third quarter of 2007. The unaudited financial statements, accompanying notes and MD&A will be filed November 8, 2007 on SEDAR and the documents will also be available on MAXIM's website. All figures reported herein are Canadian dollars unless otherwise stated.

Three Months Ended Nine Months Ended
September 30 September 30
2007 2006 2007 2006
($ in thousands except per share
Revenue $ 33,687 $ 29,521 $ 86,770 $ 70,767
EBITDA (1) 15,255 17,190 28,168 21,195
Operating income (loss) 13,497 15,005 20,397 15,802
Net income (loss) 8,271 10,093 11,386 9,353
Per share-basic and diluted $ 0.19 $ 0.23 $ 0.26 $ 0.21
Funds from Continuing Operations
(1) 14,517 16,882 17,673 20,474
Per share-basic and diluted $ 0.33 $ 0.38 $ 0.40 $ 0.47

Electricity Deliveries (MWh) 324,431 300,824 852,929 782,991
Net Generation Capacity (MW) (2) 492 437 492 437
Average Alberta Prices ($ per MWh) $ 92 $ 95 $ 69 $ 69

(1) Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") and Funds from Continuing Operations are not measures under
Canadian Generally Accepted Accounting Principles ("GAAP") and may not
be comparable to similar measures presented by other companies. Refer to
the Non-GAAP measures section of the MD&A for an explanation and
(2) Manufacturer's nameplate capacity net of minority ownership interests
of third parties.


Revenue for the third quarter and year to date increased significantly over comparable periods in 2006. EBITDA, operating income and net income also increased significantly compared to the first nine months of 2006 and decreased marginally compared to the third quarter of 2006. Funds from continuing operations decreased compared to the third quarter of 2006 and to the nine months ended September 30, 2006.

On a year to date basis, revenue from power sales and tolling agreements was $86.8 million, an increase of $16 million or 23% over the same period in 2006. EBITDA totaled $28.2 million, which is an increase of $6.9 million or 33% compared to $21.2 million in 2006. Funds from continuing operations were $17.7 million or $0.40 per share, down $2.8 million or 14% compared to $20.5 million or $0.47 per share for the first three quarters 2006. Net income increased to $11.4 million or $0.26 per share for the first nine months 2007 from $9.4 million or $0.21 per share during the same period in 2006. Net income in the first three quarters 2007 includes a current tax provision of $9.2 million and a future income tax recovery of $3.7 million for a net tax provision of $5.5 million compared to a net tax provision of $4 million in the first three quarters of 2006.

The improved operating results for the nine months ended September 30, 2007 over the same period 2006 was mainly due to increased production as MAXIM recorded generation of 852,929 MWh in the first three quarters 2007 versus 782,991 MWh during the same period in 2006. Milner produced 684,775 MWh during the nine months ended September 30, 2007 compared to 632,645 MWh for the same period of 2006. Overall production in the first nine months 2007 and 2006 reflects the inclusion of the operating results from MAXIM's projects as follows:

Nine Months Ended September 30
2007 2006
MWh Revenue MWh Revenue
($ in thousands)
Milner 684,775 $ 48,843 632,645 $ 44,763
MAXIM's other projects
Alberta 25,085 3,501 23,894 3,494
British Columbia 44,009 2,341 35,919 2,172
USA 54,327 16,144 16,280 4,420
France 44,733 15,941 74,253 15,918

Total 852,929 $ 86,770 782,991 $ 70,767
These production figures exclude facilities that provide capacity in
exchange for monthly capacity payments, or capacity based revenue.


MAXIM is pleased to announce the appointment of two officers and members to its executive team. Michael Mayder has been appointed to the position of Vice President, Finance and Chief Financial Officer and Brian Hanson has been appointed to the position of Vice President, Operations. Mr. Mayder has over twenty years of finance, accounting, and business development experience in the electrical energy and utility sectors. Mr. Hanson has been a member of the MAXIM team since 2001 and collectively has over twenty-five years of diversified operations and management experience in the electric and oil and gas industries.


Deerland Peaking Station

MAXIM is proposing to construct and operate a 190 MW natural gas-fired power generation facility on a site immediately south of the existing Deerland high voltage substation in Bruderheim, Alberta. The Corporation has obtained an option for the site and a public consultation process was initiated on July 26, 2007. In addition, regulatory applications for approvals to construct and operate the facility were submitted on October 16, 2007. MAXIM anticipates that the first phase (95 MW) will be operational in 2009. The facility will use state of the art combustion turbine technology.

Milner Coal Leases

MAXIM continues to invest in the development of Milner's coal leases, which when developed could support a significant expansion of the generating capacity at Milner. These leases have an estimated 13 million tonnes of recoverable coal reserves. To September 30, 2007, approximately $5.4 million has been spent on this project. MAXIM is in the process of obtaining mine permit and licenses with the Alberta Energy and Utilities Board and Alberta Environment for underground mine development.

HR Milner Expansion

MAXIM is proposing to expand the HR Milner Generating Station by adding 500 MW of coal-fired generating capacity at the existing HR Milner site in Grande Cache, Alberta. MAXIM is in the process of finalizing the Public Disclosure Documents for the HR Milner Expansion Project. These documents, which mark the first step in the regulatory process, will be released in December to facilitate stakeholder input into the environmental assessment that is required for permitting.


MAXIM will host a conference call for analysts and investors on Tuesday, November 13, 2007 at 9:00 a.m. MT (11:00 a.m. ET). The call will be hosted by John Bobenic, MAXIM's President and Chief Executive Officer and Mike Mayder, MAXIM's Vice President, Finance and CFO.

To participate in this conference call, please dial (800) 590-1508 or (416) 644-3429 in the Toronto area. It is recommended that participants call at least ten minutes prior to start time.

A recording of the conference call will be available from 11:00 a.m. MT on November 13, 2007 until November 20, 2007 at 11:59 p.m. MT. To access this replay, please dial (877) 289-8525 or (416) 640-1917 followed by the passcode 21252940#. In addition, the webcast will be available commencing November 20, 2007 in the Investor Relations section of MAXIM's website at


Based in Calgary, Alberta, MAXIM is an Independent Power Producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM currently owns and operates 32 power plants in western Canada, United States and France, having 492 MW of electric and 125 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward looking statements as required pursuant to applicable securities laws.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President and CEO
    (403) 750-9300
    Maxim Power Corp.
    Michael R. Mayder
    Vice President, Finance & CFO
    (403) 750-9311