RENO, NV--(Marketwire - Aug 14, 2012) - Ram Power, Corp. (
QUARTER HIGHLIGHTS
The achievement of commercial operation of the Phase I expansion at San Jacinto in January 2012 led to record revenue and earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three and the six months ended June 30, 2012. The Company recorded revenue of $7 million and EBITDA of $6.9 million for the quarter, and revenue of $13.4 million and EBITDA of $9.5 million year-to-date.
Significant highlights include:
- Revenue increased 560% and 547% for the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011;
- EBITDA increased $12.6 million and $20.8 million for the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011.
- The San Jacinto-Tizate Phase I expansion (the "Phase I Expansion") operated with a net capacity factor of 97%, and 98% availability for the quarter;
- The San Jacinto-Tizate Phase II expansion (the "Phase II Expansion") continues to progress on schedule and on budget, with a projected Commercial Operation Date of December 2012.
FINANCIAL OVERVIEW
The financial results of Ram Power for the three and six months ended June 30, 2012 and 2011 and certain key balance sheet items as at June 30, 2012 and December 31, 2011 are summarized below:
| (all figures in U.S. | For the three months ended | For the six months ended | |||||||||||
| dollars) | June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||
| Total revenue | $ | 7,023,978 | $ | 1,063,790 | $ | 13,366,830 | $ | 2,067,046 | |||||
| Direct costs | (1,286,670 | ) | (395,805 | ) | (2,081,375 | ) | (901,868 | ) | |||||
| Gross profit | 5,737,308 | 667,985 | 11,285,455 | 1,165,178 | |||||||||
| General and administrative expenses | (2,280,592 | ) | (361,111 | ) | (5,173,617 | ) | (6,507,645 | ) | |||||
| Depreciation and amortization | (3,190,530 | ) | (557,176 | ) | (6,403,934 | ) | (1,075,807 | ) | |||||
| Other operating costs | (454,626 | ) | - | (454,626 | ) | - | |||||||
| Operating loss | (188,440 | ) | (250,302 | ) | (746,722 | ) | (6,418,274 | ) | |||||
| Other gains and losses | 3,905,215 | (6,012,863 | ) | 3,804,184 | (6,014,208 | ) | |||||||
| Deferred taxes | - | 734,818 | - | 1,571,482 | |||||||||
| Total loss and comprehensive loss | (120,365 | ) | (5,382,248 | ) | (2,494,740 | ) | (11,226,826 | ) | |||||
| Total loss and comprehensive loss per share | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.06 | ) | |
| EBITDA | 6,907,305 | (5,705,989 | ) | 9,461,396 | (11,356,675 | ) | |||||||
| As at June 30, 2012 |
As at December 31, 2011 |
||||||||||||
| Cash | $ | 38,300,100 | $ | 57,195,330 | |||||||||
| Total assets | 527,556,967 | 510,825,081 | |||||||||||
| Long-term debt, net | 229,252,758 | 212,984,403 | |||||||||||
| Total liabilities | 267,430,835 | 248,321,132 | |||||||||||
| Working capital | 20,981,804 | 42,918,495 | |||||||||||
For the three months ended June 30, 2012, the Company reported revenue of $7 million and a net loss of $0.1 million (less than $0.01 per share) versus revenue of $1.1 million and a net loss of $5.4 million ($0.02 per share) for the same period in 2011. Increased revenue resulted from the Phase I Expansion being placed in service in January 2012.
Currently, the Phase I Expansion is operating at 36 MW (net), and the Company is completing the full integration of the steamfield gathering and injection systems required for both Phase I and Phase II operations, which is expected to result in 72 MW (net) output upon completion of the Phase II Expansion. The existing 10 MW back pressure facility is not currently in operation, and will be decommissioned following the completion of the Phase II Expansion. In addition, the Company has deferred commencement of the planned 10 MW (net) San Jacinto-Tizate Binary Unit expansion until the available brine flow from the Phase I and Phase II Expansions is confirmed.
EBITDA increased to $6.9 million for the three months ended June 30, 2012 versus negative EBITDA of $5.7 million for the prior year's comparable period. The increase in EBITDA of $12.6 million principally resulted from a $5.1 million increase in gross profit from San Jacinto operations, a $6.4 million decrease in the valuation of the Company's warrant liability and $3.6 million of 2011 delay damages, partially offset by $2.6 million of 2011 stock compensation credits.
For the six months ended June 30, 2012, the Company reported revenue of $13.4 million and a net loss of $2.5 million ($0.01 per share) versus revenue of $2.1 million and a net loss of $11.2 million ($0.06 per share) for the same period in 2011. Increased revenue resulted from the Phase I Expansion being placed in service in January 2012.
EBITDA increased to $9.5 million for the six months ended June 30, 2012 versus negative EBITDA of $11.4 million in the prior year's comparable period. The increase in EBITDA of $20.9 million principally resulted from a $10.1 million increase in gross profit from San Jacinto operations, a $6.3 million decrease in the valuation of the Company's warrant liability, $3.6 million of 2011 delay damages and a $2.3 million decrease in other operating costs and expenses, partially offset by $1.4 million of 2011 stock compensation credits.
For the six months ended June 30, 2012, the Company used $4.8 million of cash for operating activities and $33.6 million for additions to geothermal properties and other capital assets, with $21 million of cash provided by the San Jacinto Phase II credit facility less $1.5 million in repayments of the San Jacinto Phase I credit facility. At June 30, 2012, the Company had cash of approximately $38.3 million of cash, of which $30.6 million was held for use in the San Jacinto project and operations.
Shuman Moore, President and CEO of Ram Power, stated, "The Company continues to make great strides in the development of the Phase II expansion. With approximately 84% of construction completed, we fully expect Phase II to be operational in December 2012, which will result in further increases in revenue and EBITDA in 2013. In addition, we have reached agreement with the supervising Government agencies on the tariff increase and are awaiting its final review and approval by President Ortega's Administration, which we expect in the near future."
Ram Power will hold its earnings call to discuss the second quarter ending June 30, 2012 financial and operating results on Wednesday, August 15, 2012 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 4611034, or on the web at http://www.bellwebcasting.ca/audience/index.asp?eventid=91308229.
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada, 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 measures referenced in this news release have no standardized meaning under International Financial Reporting Standards ("IFRS") and, therefore, are considered non-GAAP measures. 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 expenses 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 expenses and other gains, less other losses. Although EBITDA is a non-GAAP measure, management believes many readers of the Company's financial information find it useful in assessing the Company's 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.
Cautionary Statements
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.
Contact Information:
Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email:
www.ram-power.com