Q2 net income increased 42.3% to $12.2 million; Products Backlog Increased
$144 million to $186 million
RENO, Nev., Aug. 5 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc.
(NYSE: ORA) today announced financial results for the second quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO)
Second Quarter Results
Electricity revenues for the second quarter increased by 11.6% to $61.8
million and product revenues decreased by 35.7% to $18.4 million. Total
revenues for the second quarter were $80.2 million compared to $84.1 million
for the second quarter of 2007, a decrease of 4.6%.
For the second quarter, the Company reported net income of $12.2 million,
or $0.28 per share of common stock (basic and diluted), as compared to net
income of $8.5 million, or $0.22 per share of common stock (basic and
diluted), for the second quarter of 2007.
Commenting on the quarter's results, Dita Bronicki, Chief Executive
Officer of Ormat, stated: "We remain on track with projects scheduled to come
online over the next two years with expected contribution of 101 MW by year's
end and 73 MW in 2009.
"Generating capacity for both the quarter and six-months increased even as
scheduled maintenance reduced production at several projects. We also built a
solid product backlog that added $176 million of new orders since the
beginning of the year, out of which $66 million are still subject to a Notice
to Proceed. These orders were geographically diverse with projects from New
Zealand, Turkey and the United States.
"The results confirm confidence in our growth goals. We secured
additional leases and raised approximately $246 million in capital by
completing two stock placements and the second leg of our tax monetization
transaction. The funding received from these activities provides us with ample
capital as we continue to advance our growth strategy," Ms. Bronicki
continued.
Electricity revenues for the three-month period ended June 30, 2008 were
$61.8 million compared to $55.4 million in the year ago period, an increase of
11.6%. The increase in electricity revenues is primarily attributable to a net
increase in domestic generating capacity of 3.6% to 539,966 MWh for the second
quarter of 2008, as well as increased rates from the Puna Project due to
higher oil prices. In addition, revenue increased from energy generated from
the Amatitlan Project in Guatemala and the Momotombo project in Nicaragua.
Revenues from the Products Segment totaled $18.4 million for the quarter,
compared to $28.7 million in 2007, a decrease of 35.7%. While revenues in the
segment decreased, manufacturing and construction activities were not reduced,
as manufacturing and construction activities for the Company's internal
projects increased.
Adjusted EBITDA for the second quarter of 2008 was $29.2 million, as
compared to $30.6 million in the same quarter last year. Adjusted EBITDA
includes consolidated EBITDA and the Company's share in the operating income
and depreciation and amortization totaling $1.3 million and $4.0 million for
the quarters ended June 30, 2008 and 2007, respectively, related to the
Company's unconsolidated investments. The reconciliation of GAAP net income to
Adjusted EBITDA is set forth below in this release.
Cash, cash equivalents and marketable securities as of June 30, 2008
increased to $137.8 million from $60.7 million as of December 31, 2007. In
addition, we have unused bank lines of credits aggregating $160 million.
On August 5, 2008, Ormat's Board of Directors approved the payment of a
quarterly cash dividend of $0.05 per share pursuant to the Company's dividend
policy, which targets an annual payout ratio of at least 20% of the Company's
net income, subject to Board approval. The dividend will be paid on August
29, 2008 to shareholders of record as of the close of business on August 19,
2008. The Company expects to pay a dividend of $0.05 per share in the next
quarter as well.
Commenting on the outlook for 2008, Ms. Bronicki said, "Following our
second quarter earnings results, we expect our 2008 Electricity Segment
revenues to be approximately $250 million. We also expect additional revenues
of approximately $9 million from our share of electricity revenues generated
by Mammoth that is accounted for under the equity method. With regard to our
Products Segment, we maintain our guidance for 2008 revenues and expect them
to be between $70 million and $80 million."
Ms. Bronicki concluded, "The first half of 2008 yielded both top and
bottom line growth that we expect will continue in the years to come, Ormat is
well positioned to contribute to the mitigation of harmful effects of
greenhouse gasses. We are pleased at the way in which both of our business
segments are prepared for future growth, and look forward to the coming
quarters."
Six Month Results
For the six month-period ended June 30, 2008, total revenues were $149.6
million, an increase of 2.6% from $145.8 million in the same period last year.
Net income for the period was $22.2 million, or $0.52 per share, compared to
$2.7 million, or $0.07 per share, in the first half of 2007.
Electricity Segment revenues for the six-month period were $121.3 million,
an increase of 22.5% from $99.0 million in the same period a year ago.
Products segment revenues for the first half of 2008 were $28.3 million, a
decrease of 39.5% from $46.8 million in the same period in 2007.
Adjusted EBITDA for the six-month period was $56.7 million, compared to
$44.0 million in the same period a year ago. Adjusted EBITDA includes
consolidated EBITDA and the Company's share in the operating income and
depreciation and amortization totaling $2.8 million and $8.2 million for the
six months ended June 30, 2008 and 2007, respectively, related to the
Company's unconsolidated investments. The reconciliation of GAAP net income
to Adjusted EBITDA is set forth below in the release.
Conference Call Details
Ormat will host a conference call to discuss its financial results and
other matters discussed in this press release at 10:00 a.m. U.S. E.D.T. on
Wednesday, August 6, 2008. The call will be available as a live, listen-only
webcast at http://www.ormat.com. During the webcast, management will refer to
slides that will be posted on the web site. The slides and accompanying
webcast can be accessed through the Event Calendar in the Investor Relations
section of Ormat's website.
A 30-day archive of the webcast will be available approximately 2 hours
after the conclusion of the live call. A replay will be available from
1:00 p.m. EDT on August 6, 2008 through 11:59 p.m. EDT, August 13, 2008.
Please call: (800) 642-1687 (U.S. and Canada) or (706) 645-9291
(International) and enter the code 55770992.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company
primarily engaged in the geothermal and recovered energy power business. The
Company designs, develops, owns and operates geothermal and recovered
energy-based power plants around the world. Additionally, the Company designs,
manufactures and sells geothermal and recovered energy power units and other
power-generating equipment, and provides related services. The Company has
more than four decades of experience in the development of
environmentally-sound power, primarily in geothermal and recovered-energy
generation. Ormat products and systems are covered by more than 75 patents.
Ormat currently operates the following geothermal and recovered energy-based
power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna,
Steamboat and OREG 1; in Guatemala -- Zunil and Amatitlan; in Kenya --
Olkaria; and in Nicaragua -- Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating
to current expectations, estimates, forecasts and projections about future
events that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
generally relate to Ormat's plans, objectives and expectations for future
operations and are based upon its management's current estimates and
projections of future results or trends. Actual future results may differ
materially from those projected as a result of certain risks and
uncertainties. For a discussion of such risks and uncertainties, see "Risk
Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 5, 2008.
Ormat Technologies Contact: Investor Relations Contact
Dita Bronicki Todd Fromer / Marybeth Csaby
CEO KCSA Strategic Communications
775-356-9029 212-896-1215 / 212-896-1236
dbronicki@ormat.com tfromer@kcsa.com / mcsaby@kcsa.com
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six-months periods Ended March 31, 2008 and 2007
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(in thousands, except per share amounts)
Revenues:
Electricity $61,774 $55,360 $121,293 $99,018
Products 18,447 28,692 28,315 46,781
Total revenues 80,221 84,052 149,608 145,799
Cost of revenues:
Electricity 41,506 35,328 80,182 75,050
Products 15,704 24,214 23,754 40,138
Total cost of revenues 57,210 59,542 103,936 115,188
Gross margin 23,011 24,510 45,672 30,611
Operating expenses:
Research and development expenses 785 1,061 1,481 1,765
Selling and marketing expenses 2,020 3,822 5,539 5,808
General and administrative expenses 5,925 5,162 11,952 10,909
Operating income 14,281 14,465 26,700 12,129
Other income (expense):
Interest income 1,052 1,621 2,098 3,036
Interest expense (2,867) (7,070) (6,470) (14,852)
Foreign currency translation and
transaction gains (losses) (1,359) 41 (1,542) (675)
Impairment of auction rate securities -- -- (328) --
Other non-operating income 309 (4) 349 348
Income (loss) before income taxes,
minority interest, and equity
in income of investees 11,416 9,053 20,807 (14)
Income tax benefit (provision) (2,613) (1,992) (4,684) 3
Minority interest 2,950 305 5,155 305
Equity in income of investees 408 1,181 947 2,412
Net income $12,161 $8,547 $22,225 $2,706
Earnings per share - basic and
diluted $0.28 $0.22 $0.52 $0.07
Weighted average number of shares
used in computation of earnings
per share:
Basic 43,828 38,123 42,995 38,116
Diluted 43,978 38,255 43,127 38,248
Net income for the three months ended June 30, 2008 and 2007 includes
stock-based compensation expense of $1.0 million, or $0.02 per share (basic
and diluted), and $1.0 million, or $0.03 per share (basic and diluted),
respectively.
Net income for the six months ended June 30, 2008 and 2007 includes
stock-based compensation expense of $2.1 million, or $0.05 per share (basic
and diluted), and $1.6 million, or $0.04 per share (basic and diluted),
respectively.
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2008 and December 31, 2007
(Unaudited)
June 30, December 31,
2008 2007
(in thousands)
Assets
Current assets:
Cash and cash equivalents $137,767 $47,227
Marketable securities - 13,489
Restricted cash, cash equivalents and marketable
securities 33,156 29,236
Receivables:
Trade 52,461 46,519
Related entities 602 385
Other 13,176 9,008
Due to Parent 668 253
Inventories, net 13,391 10,312
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,560 3,608
Deferred income taxes 1,784 1,732
Prepaid expenses and other 8,721 7,059
Total current assets 263,286 168,828
Long-term marketable securities 3,142 2,762
Restricted cash, cash equivalents and marketable
securities 4,313 5,605
Unconsolidated investments 29,306 30,560
Deposits and other 18,669 15,294
Deferred income taxes 11,888 12,427
Property, plant and equipment, net 820,018 743,386
Construction-in-process 320,249 234,014
Deferred financing and lease costs, net 13,195 14,044
Intangible assets, net 46,429 47,989
Total assets $1,530,495 $1,274,909
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $87,778 $75,836
Billings in excess of costs and estimated
earnings on uncompleted contracts 15,409 4,818
Current portion of long-term debt:
Limited and non-recourse 6,484 7,667
Full recourse - 1,000
Senior secured notes (non-recourse) 21,655 25,475
Due to Parent, including current portion of
notes payable to Parent 31,870 31,695
Total current liabilities 163,196 146,491
Long-term debt, net of current portion:
Limited and non-recourse 11,202 14,490
Senior secured notes (non-recourse) 266,136 273,840
Notes payable to Parent, net of current portion 9,600 26,200
Deferred lease income 74,856 76,198
Deferred income taxes 22,325 20,680
Liability for unrecognized tax benefits 5,817 5,330
Liabilities for severance pay 19,204 15,201
Asset retirement obligation 14,153 13,014
Total liabilities 586,489 591,444
Minority interest 123,306 65,382
Stockholders' equity:
Common stock 45 41
Additional paid-in capital 698,433 513,109
Retained earnings 121,393 103,545
Accumulated other comprehensive income 829 1,388
Total stockholders' equity 820,700 618,083
Total liabilities and stockholders' equity $1,530,495 $1,274,909
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of adjusted EBITDA
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and
amortization, equity income of investees, minority interest and other
non-operating expense (income). We calculate adjusted EBITDA to include
operating income, depreciation and amortization, interest and taxes
attributable to our equity investments in the Mammoth and Leyte Projects.
EBITDA and adjusted EBITDA are not measurements of financial performance under
accounting principles generally accepted in the United States of America and
should not be considered as an alternative to cash flow from operating
activities or as a measure of liquidity or an alternative to net earnings as
indicators of our operating performance or any other measures of performance
derived in accordance with accounting principles generally accepted in the
United States of America. EBITDA and adjusted EBITDA are presented because we
believe they are frequently used by securities analysts, investors and other
interested parties in the evaluation of a Company's ability to service and/or
incur debt. However, other companies in our industry may calculate EBITDA and
adjusted EBITDA differently than we do. The following table reconciles net
income to EBITDA and adjusted EBITDA, for the three and six-month periods
ended June 30, 2008 and 2007:
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(in thousands) (in thousands)
Net income $12,161 $8,547 $22,225 $2,706
Adjusted for:
Equity in income of investees (408) (1,181) (947) (2,412)
Minority interest (2,950) (305) (5,155) (305)
Interest expense, net (including
amortization of deferred financing
costs) 1,815 5,449 4,700 11,816
Other non-operating income 1,050 (37) 1,193 327
Income tax provision (benefit) 2,613 1,992 4,684 (3)
Depreciation and amortization 13,601 12,134 27,232 23,694
EBITDA 27,882 26,599 53,932 35,823
Equity in income of Mammoth-Pacific
L.P. and Ormat Leyte 408 1,181 947 2,412
Depreciation, amortization, interest
and taxes attributable to the
Company's equity in Mammoth-Pacific
L.P. and Ormat Leyte 918 2,848 1,837 5,752
Adjusted EBITDA $29,208 $30,628 $56,716 $43,987
SOURCE Ormat Technologies, Inc.
Dita Bronicki, CEO of Ormat Technologies, Inc., +1-775-356-9029,
dbronicki@ormat.com; or Investor Relations, Todd Fromer, +1-212-896-1215,
tfromer@kcsa.com, or Marybeth Csaby, +1-212-896-1236, mcsaby@kcsa.com, both of
KCSA Strategic Communications, for Ormat Technologies, Inc.
