U.S. Geothermal Inc.
TSX : GTH
NYSE MKT : HTM

U.S. Geothermal Inc.

March 16, 2015 16:23 ET

U.S. Geothermal Inc. Reports 2014 Year End Results, Reaffirms 2015 Guidance

BOISE, IDAHO--(Marketwired - March 16, 2015) - U.S. Geothermal Inc. (NYSE MKT:HTM)(TSX:GTH) -

Summary of Year End Financial Results:
(in millions, except per share amounts)
12 Months Ended
Dec 31
2014 2013
Operating Revenue $ 31.0 $ 27.4
Adjusted EBITDA $ 17.2 $ 15.3
EBITDA $ 14.9 $ 14.5
Net Income $ 14.9 $ 4.1
Net Income Attributable to US Geothermal $ 11.6 $ 1.9
Per Share $ 0.11 $ 0.02
Net Income Attributable to US Geothermal, As Adjusted* $ 1.8 $ 1.9

* Refer to Table 1 for further detail of Net Income, As Adjusted.

2015 Full Year Guidance (in millions):

2015
Operating Revenue $ 28 - 33
Adjusted EBITDA $ 15 - 19
EBITDA $ 12 - 16
Net Income $ 1.9 - 5.9

U.S. Geothermal Inc. (the "Company"), a leading and profitable renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today its financial and operating results for the 12 months ending December 31, 2014 (the "Year End"), and reaffirmed guidance for 2015, along with notable achievements for 2014. This earnings release should be read in conjunction with U.S. Geothermal's financial statements, and management's discussion and analysis ("MD&A"), which are available on the Company's website at www.usgeothermal.com and have been posted on SEDAR at www.sedar.com and at the U.S. Securities and Exchange Commission website at www.sec.gov.

Revenue for the Year End period was $31.0 million, compared to $27.4 million for the prior year period. Adjusted EBITDA for the Year End period was $17.2 million, compared to $15.3 million for the prior year period, while EBITDA was $14.9 million for the Year End period compared to $14.5 million for the prior year. Net Income for the Year End period was $14.9 million, compared to $4.1 million in the prior year period. Net Income attributable to U.S. Geothermal for the Year End period was $11.6 million, or $0.11 per share, compared to $1.9 million, or $0.02 per share in the prior year period. At Year End, the Company recognized a one-time, non-cash gain on recognition of a deferred tax asset as management now believes that, based on the past two years of profitable operations, the Company can reasonably expect to utilize these accumulated tax assets to offset future taxable gains.

"We are proud to report that our performance for 2014 exceeded our expectations, with Generation, Revenues, EBITDA, and Net Income all coming in towards the high end of the guidance that we had previously provided for calendar year 2014," said Dennis Gilles, U.S. Geothermal's Chief Executive Officer. "Wrapping up the year with an especially strong fourth quarter performance has put us in a strong operational and financial condition to continue growing the company; both from developing our internal project pipeline and through strategic acquisitions. All three facilities are operating with availability percentages in the high 90s. Our operating team has done an outstanding job of ensuring consistently strong generation from each facility."

U.S. Geothermal reaffirms 2015 full-year guidance for Operating Revenue estimated between $28 and $33 million, 2015 Adjusted EBITDA estimated at between $15 and $19 million, 2015 EBITDA estimated between $12 and $16 million, and provides 2015 full-year guidance for Net Income of between $1.9 and $5.9 million.

U.S. Geothermal Inc. will host a telephone conference call for investors and analysts on Tuesday, March 17th, 2015 at 11:00 a.m. ET (9:00 a.m. MT) to discuss their 2014 Year End results, which were filed after the Market Close on Monday March 16th, 2015.

The conference call may be accessed by dialing (877) 407-8133 in the United States or Canada, or (201) 689-8040 internationally. A simultaneous webcast of the conference call will be provided through www.investorcalendar.com/IC/CEPage.asp?ID=173709.

Notable Achievements for 2014 include:

  • Operations:
    • Generated fleet wide total 339,086 megawatt-hours in 2014, as compared to 309,687 megawatt-hours in 2013, a 9.5% increase
    • Delivered annual average availabilities for each plant (excluding planned maintenance hours) as follows: Raft River - 99.4%, San Emidio - 98.5%, Neal Hot Springs - 98.4%
    • Completed the acquisition of the WGP Geysers project
    • Completed the acquisition of Earth Power Resources
    • Completed the acquisition of leases for the Vale project
    • Drilled nine temperature gradient wells to define the target resource area for the El Ceibillo project, leased additional surface lands, and worked with the Guatemalan Ministry of Energy and Mines to adopt a new project construction schedule
    • Drilled two new wells, and constructed a tie-in pipeline at San Emidio for Phase II.
  • Cash Management:
    • Received combined $14.9 million cash flow from the 3 operating projects
    • Ended the year with $232.9 million in Total Assets, and Cash and Cash Equivalents of $13.0 million
    • Reduced long-term debt by $4.8 million.

Additional accomplishments can be found in the January 26, 2015 year end 2014 project update press release at the following link: www.usgeothermal.com/News.aspx.

"Our evaluation of potential M&A targets remains very active," said Dennis Gilles. "We have numerous targets in active due diligence, and are optimistic that we will continue to find attractive growth opportunities for the Company."

The below table summarizes revenues for the past 8 quarters, and reflects the seasonal variability by quarter of our generation and corresponding revenues, as well as the year over year comparison of revenues for the 4 quarters of each year.

Operating Revenue by Quarter:
2013 Versus 2014
Q1 Q2 Q3 Q4
2013 $ 7.09 $ 4.97 $ 5.76 $ 9.58
2014 $ 8.50 $ 5.85 $ 6.74 $ 9.91

Reconciliation of EBITDA:

EBITDA is calculated as net income before interest, income taxes, depreciation and amortization, and is not a measurement of financial performance or liquidity under generally accepted accounting principles in the United States. EBITDA is presented as a metric commonly used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt.

Year End Financial Results Twelve Months Ended
Dec 31
2014 2013
Net Income (Loss) $ 14.9 $ 4.1
Interest $ 4.1 $ 3.9
Income Taxes $ (10.3 ) $ 0.00
Depreciation & Amortization $ 6.2 $ 6.5
EBITDA $ 14.9 $ 14.5
Exploration costs, Asset impairment, Stock based comp. $ 2.3 $ 0.8
Adjusted EBITDA $ 17.2 $ 15.3

Full Year Guidance

2015
Net Income (Loss) $ 1.9-5.9
Interest $ 3.7
Income Taxes $ 0
Depreciation & Amortization $ 6.5
EBITDA $ 12-16
Exploration costs and Stock based compensation $ 3.0
Adjusted EBITDA $ 15-19

Adjusted EBITDA reflects EBITDA adjusted to exclude discretionary exploration costs, non-cash stock compensation as well as the value assigned to stock options granted, and write-off of discontinued exploration activities.

Net Income Attributable to US Geothermal was $11.6 million in 2014, compared to $1.9 million in the prior year period. The year-over-year improvement in Net Income was primarily due to a one time gain on the recognition of a deferred tax asset. As detailed in Table 1, Net Income Attributable to US Geothermal, As Adjusted was $1.8 million in 2014, compared to $1.9 million in the prior year period. The year-over-year change was driven largely by:

  • Recognition of Deferred Tax Asset
  • Impairment from decision to cancel development of our Granite Creek asset.

Table 1: Net Income, As Adjusted

12 Months Ended
Dec 31
(in millions, except per share amounts) 2014 2013
Net Income Attributable to US Geothermal $ 11.6 $ 1.9
Recognition of Deferred Tax Asset $ (10.3 ) $ N/A
Impairment Loss $ 0.5 $ N/A
Net Income Attributable to US Geothermal, As Adjusted $ 1.8 $ 1.9
Per Share, As Adjusted $ 0.02 $ 0.02

Please visit our website at www.usgeothermal.com.

About U.S. Geothermal Inc.:

U.S. Geothermal Inc. is a leading and profitable renewable energy company focused on the development, production and sale of electricity from geothermal energy. The company is currently operating geothermal power projects Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho for a total power generation of approximately 45 MWs. The company is also developing projects at: the Geysers, California; a second phase project at San Emidio, Nevada; the El Ceibillo project located near Guatemala City, Guatemala; and at Crescent Valley, Nevada. U.S. Geothermal's growth strategy is to reach 200 MWs of generation by 2020 through a combination of internal development and strategic acquisitions.

The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Readers are cautioned to review the risk factors identified by the company in its filings with US and Canadian securities agencies. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of U.S. Geothermal, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties; interpretation of the results of well tests; project development; resource megawatt capacity; capital expenditures; timelines; strategic plans; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from U.S. Geothermal's expectations include the uncertainties involving the availability of financing in the debt and capital markets; uncertainties involved in the interpretation of results of well tests; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction; unexpected cost increases, which could include significant increases in estimated capital and operating costs; and other risks and uncertainties disclosed in U.S. Geothermal's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities and in other U.S. Geothermal reports and documents filed with applicable securities regulatory authorities from time to time. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.

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