Primary Energy Reports Fourth Quarter and Fiscal 2012 Results

Wed Mar 6, 2013 10:55pm EST

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OAK BROOK, IL,  March 6, 2013  /PRNewswire/ - Primary Energy Recycling
 Corporation (TSX: PRI), a clean energy company that generates revenue
 from capturing and recycling recoverable heat and byproduct fuels from
 industrial processes, today announced its financial and operational
 results for the fourth quarter and year ended  December 31, 2012.

                                                                                                                                                  
 Financial Results                                                                                                                                
 (in 000's of US$)                                                                                                                                
                                                      Three Months Ended December 31,                                    For the Years Ended December 31, 
                                                      2012                        2011                 2012                        2011                    
                                                                                                                                                  
 Revenues                                             $          13,852          $          13,841   $          54,299          $          53,744 
 Operations and maintenance expense                               4,709                      5,291              17,507                     15,316 
 Operating income (loss)                                            976                      1,292               (907)                      6,266 
 Net income (loss) and comprehensive income (loss)               12,399                         22               7,285                    (2,490) 
 EBITDA (1)                                                       7,206                      7,528              24,228                     34,972 
 Adjusted EBITDA (2)                                              8,835                     10,277              36,212                     38,821 
 Net cash provided by operating activities                        7,487                      8,719              19,541                     32,329 
 Free Cash Flow (3)                                               5,253                      6,647               5,585                     25,833 
 Cash and cash equivalents                                       30,101                     20,567                   -                          - 
 Credit facility debt balance                                    80,048                     42,773                   -                          - 
                                                                                                                                                  


Fourth Quarter Highlights

* 
Contract renegotiation discussions are moving forward with the site host
 for Cokenergy. Management anticipates an agreement should be reached
 before the current contract expires in October of 2013.


* 
Subsequent to year end, the Company announced a favorable determination
 from the IRS regarding the Company's 2009 corporate income tax filing. 
 This outcome allows the Company to record a previously unrecognized net
 operating loss (NOL) carryfoward of  US$32.6 million  for a total NOL
 carryforward balance of approximately  $79.4 million, which is estimated
 to provide the Company with a tax shield extension to 2018-2019.


* 
The Company paid its first quarterly dividend of  $0.05  per Common Share
 during the fourth quarter of 2012.  In the first quarter of 2013, the
 Company paid a quarterly dividend of a  US$0.05  Common Share.


* 
For the year ended  December 31, 2012, the Company recorded an increase
 in cash and cash equivalents of  $9.5 million.  As of  December 31, 2012,
 the Company's cash balance was  $30.1 million  and unrestricted cash
 available for corporate purposes for the year ended  December 31, 2012
 was  $21.9 million.  The Company paid down  $3.1 million  in debt during
 the quarter.


* 
North Lake demonstrated performance in excess of 90 MW upgrade target
 during the fourth quarter. Management is anticipating final performance
 tests in the first quarter of 2013. The North Lake Project was
 completed on budget.


* 
The implementation of the Portside upgrades were completed on time and
 on-budget and subsequent to year end successfully passed its
 performance test.


* 
Harbor Coal volumes remain below normal due to low cost natural gas. 
 For 2013, management expects coal volumes similar to 2012.


* 
Subsequent to year end, Chief Financial Officer  Mike Alverson  announced
 his retirement. Chief Accounting Officer  Joe Powell  was promoted to
 Chief Financial Officer and  Christopher Fanella  rejoined the team as
 Chief Commercial Officer.

"In the fourth quarter of 2012, we continued to follow a disciplined and
 patient approach to building a strong company with predictable
 financial results," said  John Prunkl, President and Chief Executive
 Officer of Primary Energy. "As we look ahead to the remainder of 2013,
 we believe this disciplined approach will serve us well as our
 discussions around the renewal of the Cokenergy contract gain
 momentum."

                                                                                                                                                
 Operational Highlights                                                                                                                         
                                                                     Three Months Ending December 31,             For the Years Ending December 31, 
                                                             2012                      2011           2012                        2011          
                                                                                                                                                
 Total Gross Electric Production Megawatt Hours (MWh) (4)         335,418                   348,029       1,340,511                   1,298,867 
 Total Thermal Energy Delivered (MMBtu) (5)                     1,164,314                 1,351,913       4,590,147                   4,909,966 
 Harbor Coal Utilization (%) (6)                                    63.9%                     87.9%           69.3%                       90.4% 
                                                           


Fourth Quarter and 2012 Financial Results  


The Company's revenue of  $13.8 million  in the fourth quarter of 2012 was
 flat when compared to the fourth quarter of 2011. The Company's revenue
 of  $54.3 million  in 2012 increased  $0.6 million, or 1.0%, compared with
 revenue of  $53.7 million  in 2011.  Revenue increased at the North Lake
 and Ironside facilities as a result of increased host operations during
 2012.



Operations and maintenance expense for the fourth quarter of 2012 was
  $4.7 million  compared to  $5.3 million  for the fourth quarter of 2011, a
 decrease of  $0.6 million  or 11.0% primarily due to a one-time charge
 incurred in the fourth quarter of 2011 of  $1.2 million  related to site
 host maintenance costs offset by additional repair work of  $0.6 million
 in the fourth quarter of 2012.



Operations and maintenance expense in 2012 was  $17.5 million  compared to
  $15.3 million  in 2011, an increase of  $2.2 million  or 14.3%.  The
 Company incurred increased periodic costs for the year ended  December
 31, 2012  of  $5.4 million  compared to  $3.8 million  in 2011 primarily
 related to retubing and duct work repair work as well as additional
 general operations and maintenance expenses of  $0.6 million.



General and administrative and employee benefits expense for the fourth
 quarter of 2012 was  $3.4 million  compared to  $3.0 million  for the
 fourth quarter of 2011, an increase of  $0.4 million  or 12.5%.  General
 and administrative and employee benefits expense in 2012 was  $12.8
 million  compared to  $11.6 million  in 2011, an increase of  $1.2 million
 or 10.5%.  The increases for both the quarter and annual period are
 primarily due to additional professional fees and other general and
 administrative expenses ($0.1 million  of the expenses for the quarter
 and  $0.4 million  for the year are attributed to the buyout of the
 management agreement and the internalization of management).



Equity in earnings of the Harbor Coal joint venture for the fourth
 quarter of 2012 was  $0.4 million  compared to  $1.0 million  for the
 fourth quarter of 2011, a decrease of  $0.6 million. Equity in earnings
 of the Harbor Coal joint venture in 2012 was  $2.2 million  compared to
  $4.1 million  in 2011, a decrease of  $1.9 million. The decreases are the
 result of reduced revenue based on increased injection of low cost
 natural gas and reduced coal through-put.



Operating income for the fourth quarter of 2012 was  $1.0 million
 compared to  $1.3 million  for the fourth quarter of 2011, a decrease of
  $0.3 million.  Operating loss in 2012 was  $0.9 million  compared to
 operating income of  $6.3 million  in 2011, a decrease of  $7.2 million.
 The decrease was due in part to the  $6.0 million  fee payable on
 termination of the Company's management agreement as well as the
 additional operating expenses noted above.



Net income and comprehensive income for the fourth quarter of 2012 was
  $12.4 million  compared to  $0.02 million  for the fourth quarter of 2011,
 an improvement of  $12.4 million  primarily due to the recognition of an
 income tax benefit of  $12.8 million  associated with the NOL
 carryforward recorded upon completion of the Company's 2009 tax audit.
 Net income and comprehensive income for 2012 was  $7.3 million  compared
 to a net loss and comprehensive loss of  $2.5 million  for 2011, an
 increase of  $9.8 million.


Conference Call and Webcast


Management will host a conference call to discuss the second quarter
 results on  Thursday, March 7, 2013  at  10 am ET. Following management's
 presentation, there will be a question and answer session.  To
 participate in the conference call, please dial (888) 231-8191 or (647)
 427-7450.



A digital conference call replay will be available until midnight on
  March 21, 2013 (ET) by calling (855) 859-2056 or (416) 849-0833. Please
 enter the passcode 89944765 when instructed. A webcast replay will be
 available for 90 days by accessing a link through the Events section at
  www.primaryenergyrecycling.com

Forward-Looking Statements  


When used in this news release, the words "intend", "likely",
 "anticipate", "expect", "project", "believe", "estimate",
 "forecast", "outlook" and similar expressions, are intended to identify
 forward-looking statements, including statements regarding maintenance
 and capital expenditures. Such statements are subject to certain risks,
 uncertainties and assumptions pertaining, but not limited, to recovery
 in the steel industry, continued strong performance from the mills we
 serve consistent with historical patterns, timely renewal of contracts
 at the Company's facilities, no protracted outages (planned or
 unplanned) for any of our facilities, operating and maintenance costs
 and general and administrative costs being similar to recent years
 except as described in this press release, regulatory parameters,
 weather and economic conditions and other factors discussed in the
 Company's public filings available on SEDAR at  www.sedar.com. Additional risks
and uncertainties not currently known or that are
 currently deemed to be immaterial may also materially and adversely
 affect the Company's business operations and outlook. Any of the
 matters highlighted in the Company's risk factor disclosure could have
 a material adverse effect on the Company's results of operations,
 business prospects and outlook, financial condition or cash flow, in
 which case, the market price or value of the Company's Common Shares
 could be adversely affected. These forward-looking statements are made
 as of the date of this press release and the Company assumes no
 obligation to update or revise them to reflect new events or
 circumstances, except as required by applicable securities laws.


About Primary Energy Recycling Corporation  


Primary Energy Recycling Corporation, headquartered in  Oak Brook,
 Illinois, owns and operates four recycled energy projects and a 50%
 interest in a pulverized coal facility (collectively, the "Projects").
 The Projects have a combined electrical generating capacity of 293
 megawatts and a combined steam generating capacity of 1.8M lbs/hour.
 Primary Energy Recycling Corporation creates value for its customers by
 capturing and recycling waste energy from industrial and electric
 generation processes and converting it into reliable and economical
 electricity and thermal energy for resale back to its customers. For
 more information, please see  www.primaryenergy.com

1As used herein, EBITDA means earnings before interest, taxes,
 depreciation and amortization and certain other adjustments.   EBITDA
 is reconciled to net (loss) income and comprehensive (loss) income in
 the table below.  EBITDA is not a recognized measure under IFRS and
 does not have a standardized meaning prescribed by IFRS. Therefore,
 EBITDA may not be comparable to similar measures presented by other
 companies.


2As used herein, references to Adjusted EBITDA are to EBITDA as adjusted
 for certain non-recurring adjustments for major maintenance/outage work
 expenses, maintenance services settlement, management agreement
 termination fee, professional fees and other general and administrative
 expenses related to the buyout of the non-controlling interest and
 internalization of management and non-cash stock based compensation
 that represent recorded expenses based on specific circumstances and
 are not expected to be part of the Company's ongoing business activity.
 Adjusted EBITDA is reconciled to net income (loss) and comprehensive
 income (loss) in the table below. Adjusted EBITDA is not a recognized
 measure under IFRS and does not have a standardized meaning prescribed
 by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar
 measures presented by other companies.


3As used herein, Free Cash Flow means net cash provided by operating
 activities as adjusted for capital expenditures.  Free Cash Flow is not
 a recognized measure under IFRS and does not have a standardized
 meaning prescribed by IFRS. Therefore, Free Cash Flow may not be
 comparable to similar measures presented by other companies.


4Total Gross Electric Production means the aggregate amount of
 electricity produced by all of the Company's facilities during the
 period. The amount is gross generation and is not reduced by internal
 electric usage of the facilities' auxiliary equipment. The unit of
 measure is megawatt hours (MWh).  Due to the fixed and variable nature
 of customer contracts, MWh production cannot be directly tied to
 financial performance.


5Total Thermal Energy Delivered means the aggregate amount of heat energy
 contained in the steam and heated water delivered to customers by all
 of the Company's facilities during the period. The unit of measure is
 million of British Thermal Units (MMBTU). Due to the fixed and variable
 nature of customer contracts, MMBTU production cannot be directly tied
 to financial performance.


6Harbor Coal Utilization is a factor that incorporates the production
 level of a blast furnace and the amount of coal utilization per unit of
 blast furnace production as compared to a reference blast furnace
 production level and coal utilization rate per unit of blast furnace
 production. The measurement unit is a ratio expressed as a percentage.



Management believes that EBITDA, Adjusted EBITDA, Free Cash Flow, Total
 Gross Electric Production, Total Thermal Energy Delivered and Harbor
 Coal Utilization provide useful supplemental information regarding the
 performance of the Company, facilitate comparisons of historical
 periods and are indicative of the Company's operating results.  Note
 however, that these items are performance measures only, and do not
 provide any measure of the Company's cash flow or liquidity, and are
 not a substitute for IFRS financial measures.


Non-IFRS Measures  


The Company reports its financial results in accordance with IFRS. The
 Company's management also evaluates and makes operating decisions using
 various other measures.  Three such measures are EBITDA, Adjusted
 EBITDA and Free Cash Flow, which are non-IFRS financial measures. We
 believe these measures provide useful supplemental information
 regarding the performance of Company's business.

                                                                                                                                                                                                                     
 Reconcilation of Net Income (Loss) and Comprehensive                                                                                                                                                                   
 Income (Loss) to Adjusted EBITDA                                                                                                                                                                                    
 (in 000's of US$)                                                                                              Three Months Ended December 31,                            For the Years Ended December 31,                  
                                                                                                                2012                                2011                 2012                         2011               
                                                                                                                                                                                                                     
 Net income (loss) and comprehensive income (loss)                                                                         $       12,399                 $       22          $     7,285                 $  (2,490) 
 Adjustment to net income (loss) and comprehensive income (loss):                                                                                                                                                    
                                    Depreciation and amortization                                                                  5,221                      5,227               21,053                     24,170 
                                    Depreciation and amortization included in equity in earnings                                   1,009                      1,009                4,036                      4,036 
                                    
   of Harbor Coal joint venture                                                                                                                                                
                                    Interest expense                                                                               1,450                      1,241                5,690                      6,294 
                                    Deferred finance fees expensed upon extinguishment of debt                                         -                          -                  765                          - 
                                    Realized and unrealized (gain) loss on derivative contracts                                     (18)                          -                  554                          4 
                                    Loss on derecognition                                                                              -                          -                   46                        500 
                                    Income tax (benefit) expense                                                                (12,855)                         29             (15,201)                      2,458 
 EBITDA                                                                                                                    $        7,206                 $    7,528          $    24,228                 $   34,972 
                                                                                                                                                                                                                     
 Adjustments to EBITDA:                                                                                                                                                                                              
                                    Major maintenance (1)                                                                          1,475                      1,500                5,432                      2,600 
                                    Maintenance services settlement                                                                    -                      1,200                    -                      1,200 
                                    Management Agreement termination fee                                                               -                          -                6,000                          - 
                                    Professional fees and other general and administrative                                            76                         49                  369                         49 
                                    
   expenses related to the buyout of the non-controlling                                                                                                                       
                                    
   interest and internalization of management                                                                                                                                  
                                    Non-cash stock based compensation                                                                 78                          -                  183                          - 
 Adjusted EBITDA                                                                                                           $        8,835                 $   10,277          $    36,212                 $   38,821 
                                                                                                                                                                                                                     
 1)  Represents nonrecurring major maintenance expenditures for such                                                                                                                                                             
  items as boiler retubing work and other related maintenance                                                                                                                                                                    
  expenditures and ductwork repairs.                                                                                                                                                                                             
                                                                                                                                                                                                                     
 Reconcilation of Net Cash Provided by Operating                                                                                                                                                                     
 
   Activities to Free Cash Flow                                                                                                                                                                                    
 (in 000's of US$)                                                                                              Three Months Ended December 31,                            For the Years Ended December 31,                  
                                                                                                                2012                                2011                 2012                         2011               
                                                                                                                                                                                                                     
 Net cash provided by operating activities                                                                                 $        7,487                 $    8,719          $    19,541                 $   32,329 
                                                                                                                                                                                                                     
 Less: Capital expenditures                                                                                                       (2,234)                    (2,072)             (13,956)                    (6,496) 
 Free Cash Flow                                                                                                            $        5,253                 $    6,647          $     5,585                 $   25,833 
                                                                                                                                                                                                           


            
 Primary Energy Recycling Corporation                                                                                                     
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                                                                                            
 (In thousands of U.S. dollars)                                                                                                           
                                                                                                                                          
 ASSETS                                                                                  December 31, 2012        December 31, 2011 
 Current assets:                                                                                                                    
            Cash and cash equivalents                                                         $     30,101            $     20,567 
            Accounts receivable                                                                      8,266                   8,115 
            Inventory, net                                                                           1,126                     987 
            Tax receivable                                                                             691                     565 
            Prepaid expenses                                                                           987                     632 
            Other current assets                                                                       336                       - 
 Total current assets                                                                                41,507                  30,866 
                                                                                                                              
 Non-current assets:                                                                                                                
            Property, plant and equipment, net                                                     185,355                 180,844 
            Intangible assets, net                                                                  12,321                  24,632 
            Restricted cash                                                                          3,445                   1,930 
            Deferred tax asset, net                                                                      -                   2,519 
            Investment in Harbor Coal joint venture                                                 58,600                  63,190 
            Other non-current assets                                                                    85                     159 
 Total assets                                                                                  $    301,313            $    304,140 
                                                                                                                              
 LIABILITIES AND EQUITY                                                                                                             
                                                                                                                              
 Current liabilities:                                                                                                               
            Accounts payable                                                                  $        971            $      1,115 
            Short-term debt                                                                         11,133                  27,304 
            Due to affiliates                                                                            -                     333 
            Accrued property taxes                                                                   1,725                   1,963 
            Accrued expenses                                                                         6,558                   5,503 
 Total current liabilities                                                                           20,387                  36,218 
                                                                                                                              
 Non-current liabilities:                                                                                                           
            Long-term debt                                                                          64,913                  14,134 
            Deferred income tax liability, net                                                       1,753                       - 
            Interest rate swap                                                                         155                       - 
            Asset retirement obligations                                                             3,063                   4,239 
 Total liabilities                                                                                   90,271                  54,591 
                                                                                                                              
 Equity                                                                                                                          
                                                                                                                              
 Equity attributable to equity owners of the Company                                                                                
 Common stock: no par value, unlimited shares authorized;                                                                           
            44,706,186 issued and outstanding                                                      274,479                 274,479 
 Contributed surplus                                                                                 37,466                   3,316 
 Accumulated shareholders' deficit                                                                (100,903)               (107,748) 
 Total equity attributable to equity owners of the Company                                          211,042                 170,047 
 Non-controlling interest                                                                                 -                  79,502 
 Total equity                                                                                       211,042                 249,549 
 Total liabilities and equity                                                                  $    301,313            $    304,140 
                                                                              


                                                                                                                                                     
 Primary Energy Recycling Corporation                                                                                                                        
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                                                                                             
 (In thousands of U.S. dollars, except share and per share amounts)                                                                                          
                                                                                                                                                             
                                                                                                                        For the Years Ended December 31, 
                                                                                                  2012                           2011                  
                                                                                                                                                     
 Revenue:                                                                                                                                            
                                     Capacity                                                           $      36,071                 $      36,071 
                                     Energy service                                                            18,228                        17,673 
                                                                                                                54,299                        53,744 
 Expenses:                                                                                                                                           
                                     Operations and maintenance                                                17,507                        15,316 
                                     General and administrative                                                 8,778                         9,299 
                                     Management agreement termination fee                                       6,000                             - 
                                     Employee benefits                                                          4,023                         2,289 
                                     Depreciation and amortization                                             21,053                        24,170 
                                     Loss on derecognition                                                         46                           500 
 Total operating expenses                                                                                       57,407                        51,574 
                                                                                                                                                     
 Equity in earnings of Harbor Coal joint venture                                                                 2,201                         4,096 
                                                                                                                                                     
 Operating (loss) income                                                                                         (907)                         6,266 
                                                                                                                                                     
 Other expense                                                                                                                                       
                                     Interest expense                                                         (5,690)                       (6,294) 
                                     Deferred finance fees expensed upon extinguishment of debt                 (765)                             - 
                                     Realized and unrealized loss on derivative contracts                       (554)                           (4) 
                                                                                                                                                     
 Loss before income taxes                                                                                      (7,916)                          (32) 
 Income tax benefit (expense)                                                                                   15,201                       (2,458) 
 Net income (loss) and comprehensive income (loss)                                                       $       7,285                 $     (2,490) 
                                                                                                                                                     
 Net income (loss) and comprehensive income (loss) attributable to:                                                                                  
                                     Owners of the Company                                              $       9,080                 $          36 
                                     Non-controlling interest                                                 (1,795)                       (2,526) 
                                                                                                         $       7,285                 $     (2,490) 
                                                                                                                                                     
 Net income per share attributable to owners of the Company:                                                                                         
 Weighted average number of shares outstanding - basic                                                      44,706,186                    44,706,186 
 Weighted average number of shares outstanding - diluted                                                    45,336,916                    45,156,680 
 Basic and diluted net income per share attributable to owners of                                        $        0.20                 $        0.00 
 
   the Company (Note 13)                                                                                                                           
                                                                                                                                        


                                                                                                                                                                                                          
                                                                                                                                                                                                          
                                                                                                                                                                                                          
 Primary Energy Recycling Corporation                                                                                                                                                                     
 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                                                                                                                                                             
 (In thousands of U.S. dollars)                                                                                                                                                                           
                                                                                                                                                                                                    
                                                      Attributable to equity owners of the Company                                                                                                
                                                                                                                                                                                                
                                                      Common                  Contributed             Accumulated                Total               Non-controlling         Total            
                                                      stock                   surplus                 deficit                                        interest                equity           
 Balance - January 1, 2011                                 $  274,479              $   3,316              $  (107,784)             $  170,011            $    82,028    $       252,039 
                                                                                                                                                                                        
 Net income (loss) and comprehensive (income) loss                                                                                                                                      
 for the year ended December 31, 2011                               -                      -                        36                     36                (2,526)            (2,490) 
 Balance - December 31, 2011                               $  274,479              $   3,316              $  (107,748)             $  170,047            $    79,502    $       249,549 
                                                                                                                                                                                        
 Balance - January 1, 2012                                 $  274,479              $   3,316              $  (107,748)             $  170,047            $    79,502    $       249,549 
                                                                                                                                                                                        
 Net income (loss) and comprehensive income (loss)                                                                                                                                      
 for the year ended December 31, 2012                               -                      -                     9,080                  9,080                (1,795)              7,285 
 Dividends on Common Shares                                         -                      -                   (2,235)                (2,235)                      -            (2,235) 
 Buyout of non-controlling interest                                 -                 33,967                         -                 33,967               (77,707)           (43,740) 
 Stock compensation expense                                         -                    183                         -                    183                      -                183 
 Balance - December 31, 2012                               $  274,479              $  37,466              $  (100,903)             $  211,042            $         -    $       211,042 


                                 
 Primary Energy Recycling Corporation                                                                                                                        
 CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                       
 (In thousands of U.S. dollars)                                                                                                                              
                                                                                                                                                       
                                                                                          For the Years Ended December 31,                   
                                                                                          2012                         2011                
                                                                                                                                         
 CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                   
 Net income and comprehensive income for the period                                              $     7,285                 $   (2,490) 
 Adjustments for:                                                                                                                        
 Depreciation and amortization                                                                        21,053                      24,170 
 Loss on derecognition                                                                                    46                         500 
 Unrealized loss on derivative contracts                                                                 320                           4 
 Deferred finance fees expensed upon extinguishment of debt                                              765                           - 
 Equity in earnings of Harbor Coal joint venture                                                     (2,201)                     (4,096) 
 Distributions from investment in Harbor Coal joint venture                                            6,790                       7,627 
 Non-cash interest expense                                                                             2,221                       2,284 
 Non-cash stock based compensation                                                                       183                           - 
 Income tax                                                                                         (15,243)                       2,422 
                                                                                                      21,219                      30,421 
 Net change in non-cash working capital balances                                                     (1,678)                       1,908 
                                 Net cash provided by operating activities                           19,541                      32,329 
                                                                                                                                         
 CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                   
 Change in restricted cash                                                                           (1,515)                       1,061 
 Capital expenditures                                                                               (13,956)                     (6,496) 
                                 Net cash used in investing activities                             (15,471)                     (5,435) 
                                                                                                                                         
 CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                   
 Proceeds from issuance of debt                                                                       85,000                           - 
 Purchase of non-controlling interest                                                               (24,225)                           - 
 Payments of deferred financing costs                                                                (5,351)                       (139) 
 Repayment of debt                                                                                  (47,725)                    (28,593) 
 Dividends on Common Shares                                                                          (2,235)                           - 
                                 Net cash provided by (used in) financing activities                  5,464                    (28,732) 
 Net increase (decrease) in cash                                                                       9,534                     (1,838) 
                                                                                                                                         
 Cash and cash equivalents - beginning of period                                                      20,567                      22,405 
 Cash and cash equivalents - end of period                                                       $    30,101                 $    20,567 
                                                                                                                                         
 Supplemental disclosure of cash flow information:                                                                                       
 Cash paid during the period for interest                                                        $     3,510                 $     4,015 
 Cash paid during the period for income taxes                                                    $       168                 $       268 
                                                                                                                              


SOURCE  Primary Energy Recycling Corporation

Chief Commercial Officer

Christopher Fanella

Primary Energy Recycling

630.560.4227

investorinfo@primaryenergy.com

Media and Investor Relations

Adam Peeler

TMX Equicom

416.815.0700 ext. 225

apeeler@tmxequicom.com

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