Maxim Power Corp.

Maxim Power Corp.

August 09, 2007 16:30 ET

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

CALGARY, ALBERTA--(Marketwire - Aug. 9, 2007) - MAXIM (TSX:MXG) is pleased to announce the release of its financial and operating results for the second quarter of 2007. The unaudited financial statements, accompanying notes and MD&A will be filed August 10, 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 Six Months Ended
June 30 June 30
2007 2006 2007 2006
($ in thousands except
per share amounts)
Revenue $ 19,031 $ 9,776 $ 53,083 $ 41,246
EBITDA (1) 2,913 (4,202) 12,914 4,005
Operating Income (loss) (1) 784 (5,584) 6,900 797
Net Income (loss) (207) (4,523) 3,115 (740)
Per share-basic and diluted ($ 0.01) ($ 0.10) $ 0.07 ($ 0.02)
Funds from Continuing Operations (1) 2,960 (4,511) 3,156 3,592
Per share-basic and diluted $ 0.07 ($ 0.10) $ 0.07 $ 0.08

Electricity Deliveries (MWh) 277,380 153,617 525,076 482,167
Net Generation Capacity (MW) 482 364 482 364
Average Alberta Prices ($ per MWh) $ 52 $ 54 $ 58 $ 55

(1) Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"), Operating Income (loss) 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 reconciliation.


Revenue, EBITDA, operating income, and net income for the three months and six months ended June 30, 2007 increased significantly over comparable periods in 2006. Funds from continuing operations also increased significantly compared to the second quarter of 2006 and decreased marginally compared to the first six months of 2006.

On a year to date basis, revenue was $53.1 million, an increase of $11.8 million or 29% over the same period in 2006. EBITDA totaled $12.9 million, which is an increase of $8.9 million or 222% compared to $4.0 million in 2006. Funds from continuing operations were $3.2 million or $0.07 per share, down $0.4 million or 12% compared to $3.6 million or $0.08 per share for the first two quarters 2006. Net income increased to $3.2 million or $0.07 per share for the first six months 2007 from a loss of $0.7 million or ($0.02) per share during the same period in 2006. Net income for the six months ended June 30, 2007 includes a current tax provision of $8.8 million and a future income tax recovery of $7.3 million for a net tax provision of $1.5 million compared to a net tax provision of $0.2 million in the first two quarters of 2006.

As previously reported, MAXIM advanced the annual turnaround of its HR Milner Generating Plant ("Milner") to the first quarter of 2007 to coordinate this maintenance initiative with other work underway at the plant. Milner resumed continuous operations during the second quarter on April 4, 2007 at 95 MW, and increased output to full capacity on April 9, 2007.

The improved operating results for the six months ended June 30, 2007 over the same period 2006 was due in part to increased electricity prices in Alberta, which averaged $58 per MWh in 2007 versus $55 per MWh for this period in 2006. Increased production also contributed to improved operating results as MAXIM recorded generation of 528,498 MWh in the first two quarters 2007 versus 482,167 MWh during the same period 2006. Milner produced 428,227 MWh during the six months ended June 30, 2007 compared to 359,561 MWh for the same period of 2006. Production and revenue in the first six months of 2007 and 2006 reflect the inclusion of the operating results from MAXIM's projects as follows:

Six Months Ended June 30
2007 2006
MWh Revenue MWh Revenue
($ in thousands)
Milner 428,227 $ 24,873 359,561 $ 19,810
MAXIM's other projects
Alberta 17,099 2,259 16,815 2,234
British Columbia 28,275 1,526 25,097 1,612
USA 10,164 8,486 6,441 1,286
France 44,733 15,939 74,253 16,304
Total 528,498 $ 53,083 482,167 $ 41,246
These production figures exclude the Basin Creek plant, CDECCA, and the 25
MW Alberta Power Project ("APP") as these facilities provide capacity in
exchange for monthly capacity payments, or capacity based revenue.


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 company has obtained an option for the site and commenced a public consultation process on July 26, 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 has invested approximately $5 million to June 30, 2007 on the development of Milner's coal leases. These leases have an estimated 13 million tonnes of recoverable coal reserves. MAXIM will be filing its application with the Alberta Energy and Utilities Board and Alberta Environment on August 10, 2007 to obtain an underground mine permit.

MAXIM also continues to explore a number of acquisition and greenfield development opportunities in its core markets of western North America, the northeast United States and France.


MAXIM will host a conference call for analysts and investors on Tuesday, August 21, 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.

To participate in this conference call, please dial (800) 732-9307 or (416) 644-3414 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 Tuesday, August 21, 2007 until Tuesday, August 28, 2007 at 11:59 p.m. MT. To access this replay, please dial (877) 289-8525 or (416) 640-1917 followed by the passcode 2124290#. In addition, the webcast will be available commencing August 21, 2007 in the Investor Relations section of MAXIM's web site 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 30 power plants in western Canada, United States and France, having 482 MW of electric and 121 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.

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