Maxim Power Corp.
TSX : MXG

Maxim Power Corp.

August 13, 2008 19:05 ET

Maxim Power Corp. ("MAXIM") Announces Second Quarter 2008 Results

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2008) - MAXIM (TSX:MXG) is pleased to announce the release of financial and operating results for its second quarter of 2008. The unaudited consolidated financial statements, accompanying notes and MD&A will be filed August 14, 2008 on SEDAR and the documents will also be available on MAXIM's website. All figures reported herein are Canadian dollars unless otherwise stated.



FINANCIAL HIGHLIGHTS

----------------------------------------------------------------------------
Three Months Ended Six Months Ended
($ in thousands except per share June 30 June 30
amounts) 2008 2007 2008 2007
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Revenue $ 14,797 $ 18,979 $ 62,211 $ 52,963
EBITDA (1) (5,109) 2,912 10,254 12,913
Net income (loss) (5,993) (207) (37) 3,115
Per share-basic and diluted ($0.13) ($0.01) $ 0.00 $ 0.07
Cash provided by operations (7,966) 3,038 9,008 24,880
Per share-basic and diluted ($0.18) $ 0.07 $ 0.20 $ 0.57

Electricity Deliveries (MWh) 95,567 280,802 391,113 528,498
Net Generation Capacity (MW) (2) 584 482 584 482
Average Alberta Prices
($ per MWh) $ 108 $ 52 $ 92 $ 58

(1) EBITDA is earnings before interest, taxes, depreciation and
amortization and is not a measure under Canadian Generally Accepted
Accounting Principles ("GAAP") and may not be comparable to similar
measures presented by other companies. Refer to Non-GAAP measure
section of the MD&A for an explanation and reconciliation.
(2) Net generation capacity is manufacturer's nameplate capacity net of
minority ownership interests of third parties.


OPERATING RESULTS

During the second quarter, MAXIM successfully completed an eight week turnaround on the HR Milner Facility, on time and on budget. This turnaround was longer than in recent years and is part of the facility's life-cycle maintenance program where extended work is required every six to eight years. As a result of removing HR Milner from service for the turnaround, revenue, EBITDA, cash provided by operations and net income all decreased compared to the same quarter in 2007. During the quarter MAXIM also acquired the Forked River generating facility, which contributed favorably to MAXIM's results and partially offset impacts of the turnaround.

For the six months ended June 30, 2008, MAXIM's strong first quarter in 2008 offset the lower operating results in the second quarter. Revenues increased $9.2 million from $53.0 million in 2007 to $62.2 million in 2008, primarily due to increased power prices and the acquisition of generating facilities in North America and France. Decreases over the first half of 2008 in EBITDA, net income and cash provided by operations were primarily due to the extended duration of the 2008 HR Milner turnaround. Production for HR Milner during the first half of 2008 totaled 289,880 MWh compared to 428,227 MWh in 2007, reflecting the duration of this turnaround.

GROWTH INITIATIVES

Deerland Peaking Station

As previously announced, MAXIM received regulatory approvals from the Alberta Utilities Commission and Alberta Environment to construct and operate the Deerland Peaking Station, a 190 MW natural gas-fired peaking facility. The station will be located immediately adjacent to the existing Deerland high voltage substation in Alberta's industrial heartland, an area expected to experience significant growth in electrical demand. The Deerland Peaking Station will be constructed in two 95 MW phases with each phase configured with two General Electric LM6000 combustion turbine generator packages. Commercial operation for each of the phases is expected to be achieved in 2009 and 2010, respectively, subject to electricity market conditions and the ability of MAXIM to conclude all commercial arrangements necessary to support construction.

#14 Mine Project

MAXIM has completed and submitted the necessary application materials for the development of three Milner coal leases on its HR Milner site, which represent 13 million tonnes of recoverable coal. The Company is currently waiting for approval of these filings.

Milner Expansion

MAXIM is continuing the preliminary engineering and environmental studies relating to the Milner expansion project. Once completed, the necessary regulatory applications will be completed and submitted to the appropriate regulatory body for approval.

CONFERENCE CALL AND WEBCAST FOR THE SECOND QUARTER 2008 RESULTS

MAXIM will host a conference call for analysts and investors on Thursday, September 4, 2008 at 9:00 a.m. MT (11:00 a.m. ET). The call will be hosted by John R. Bobenic, MAXIM's President and Chief Executive Officer and Michael R. Mayder, MAXIM's Vice President, Finance and Chief Financial Officer.

To participate in this conference call, please dial (866) 542-4265 or (416) 641-6137 in the Toronto area. It is recommended that participants call at least fifteen minutes prior to start time.

A recording of the conference call will be available from 2:00 p.m. MT (4:00 p.m. ET) on Thursday, September 4, 2008 until Thursday, September 11, 2008 at 9:59 p.m. MT (11:59 p.m. ET). To access this replay, please dial (416) 695-5800 or (800) 408-3053 followed by the passcode 3268786. In addition, the webcast will be available commencing September 11, 2008 in the Investor Relations section of MAXIM's web site at www.maximpowercorp.com.

ABOUT MAXIM

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 34 power plants in western Canada, United States and France, having 754 MW of electric and 132 MW of thermal net generating capacity. MAXIM will continue to execute on its strategy as an independent power producer and is targeting significant growth through acquisitions and development of power projects which utilize hydrocarbon based fuels and renewables in the markets of Western Canada, United States and France. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

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.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President and CEO
    (403) 750-9300
    or
    Maxim Power Corp.
    Michael R. Mayder
    Vice President, Finance and CFO
    (403) 750-9311
    Website: www.maximpowercorp.com