Exhibit 99.1
PRESS RELEASE
For Immediate Release
Ormat Technologies Contact: Dita Bronicki CEO 775-356-9029 dbronicki@ormat.com |
Investor Relations Contact: Todd Fromer/Rob Fink KCSA Strategic Communications 212-896-1215(Todd)//212-896-1206 (Rob) tfromer@kcsa.com / rfink@kcsa.com |
ORMAT TECHNOLOGIES REPORTS SECOND QUARTER 2011 RESULTS
Q2 net income of $8.2 million with increased total revenues of $104.6 million
Product backlog reached $225 million
Q2 net income of $8.2 million with increased total revenues of $104.6 million
Product backlog reached $225 million
(RENO, Nev.) August 3, 2011 — Ormat Technologies, Inc. (NYSE: ORA) today announced financial
results for the second quarter of 2011.
Quarterly highlights:
| • | 18 percent increase in electricity revenues; |
| • | 11 percent increase in electricity generation; and |
| • | the largest product order which led to a record high backlog. |
Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated, “The second
quarter was highlighted by strength in electricity operations. The good performance of most of our
plants translated into growth in generation and in revenues from electricity, which increased to
$81.2 million.
“We successfully secured new contracts for the supply of geothermal power plants and other
power generating units. During the quarter we received a supply and engineering, procurement and
construction (EPC) contract from New Zealand, which has a collective value of approximately $130
million. This represents the largest product order in our company’s 46-year history, and, as a
result, the product backlog increased to approximately $225 million.
“During the quarter, we also have made additional progress toward diversifying our future
development portfolio by entering into a build, operate and transfer (BOT) agreement with Tikitere
Geothermal Power Limited (TGL) to explore, develop, supply, construct, own and operate a 45 MW
geothermal power plant in New Zealand.”
Financial Summary
Second Quarter Results
For the three months ended June 30, 2011, total revenues were $104.6 million, compared to
$96.3 million in the second quarter of 2010. Electricity revenues increased by 18.0 percent to
$81.2 million, up from $68.8 million in the second quarter of 2010. Electricity revenues in the
quarter include $4.8 million relating to our North Brawley power plant with corresponding cost of
revenues of $10.4 million. Total generation increased by 11.2 percent and the average revenue rate
of electricity operations was $83 per MWh, up from $78 per MWh in the second quarter of 2010.
Product revenues for the three months ended June 30, 2011 were $23.4 million, compared to $27.5
million in
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the same period in 2010. Product revenues in the quarter include $7.9 million relating to an
experimental REG plant in an LNG terminal in Spain.
For the quarter, the company reported net income of $8.2 million, or $0.18 per share (basic and
diluted), compared to a net loss of $1.5 million, or $0.03 per share (basic and diluted) for the
same period a year ago. The increase is principally attributable to the increase in the gross
margins of both our electricity and product revenues.
Adjusted EBITDA for the second quarter of 2011 was $47.7 million, compared to $24.0 million in the
same quarter last year. Adjusted EBITDA includes consolidated EBITDA and the company’s share in the
interest, taxes, depreciation and amortization related to its unconsolidated 50 percent interest in
the Mammoth complex in California in the three months ended June 30, 2010. The reconciliation of
GAAP net cash provided by operating activities to Adjusted EBITDA as well as additional cash flow
information is set forth below.
As of June 30, 2011, cash, cash equivalents and marketable securities were $67.4 million. In
addition, as of June 30, 2011, the company had available committed lines of credit with commercial
banks aggregating $407.5 million, of which $196.0 million is unused.
On August 3, 2011, Ormat’s Board of Directors approved the payment of a quarterly dividend of $0.04
per share pursuant to the company’s dividend policy, which targets an annual payout ratio of at
least 20 percent of the company’s net income. The dividend will be paid on August 25, 2011 to
shareholders of record as of the close of business on August 16, 2011. The company expects to pay
a dividend of $0.04 per share in the next quarter.
Commenting on the outlook for 2011, Bronicki said, “We continue to expect 2011 electricity revenues
to total $315 to $325 million. We are maintaining our product revenues guidance to be $90 to $100
million.”
Six-Month Results
For the six months ended June 30, 2011, total revenues were $202.4 million, an increase of
13.1 percent from $178.9 million in the same period last year. Net loss for the period was $0.7
million, or $0.02 per share (basic and diluted), compared to net income of $0.3 million, or $0.01
per share (basic and diluted), in the same period in 2010.
Electricity revenues for the six months ended June 30, 2011 were $159.5 million, compared to $134.9
million in the same period a year ago, an increase of 18.2 percent. Product revenues for the first
six months of 2011 were $43.0 million, compared to $44.0 million in the same period in 2010, a
decrease of 2.3 percent.
Adjusted EBITDA for the six months ended June 30, 2011 was $74.8 million, compared to $56.1 million
for the same period a year ago. Adjusted EBITDA includes consolidated EBITDA and the company’s
share in the interest, taxes, depreciation and amortization related to its unconsolidated 50
percent interest in the Mammoth complex in California for the six months ended June 30, 2010. The
reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA, as well as
additional cash flow information is set forth below.
Conference
Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in
this press release at 10 a.m. EDT on Thursday, August 4, 2011. The call will be available as a
live, listen-only webcast at 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 IR events & Presentations in the Investor Relations section of Ormat’s website.
The webcast replay will be available approximately two hours after the conclusion of the live call.
A telephonic replay will be available from 1 p.m. EDT on August 4, 2011 through 11:59 p.m. EDT on
August 11, 2011 by calling: (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and
entering the reply code: 83311580.
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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 ccompany
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 80 U.S. patents. Ormat has
engineered and built power plants, that it currently owns or has supplied to utilities and
developers worldwide, totaling approximately 1370 MW of gross capacity. Ormat’s current generating
portfolio includes the following geothermal and recovered energy-based power plants: in the United
States — Brady, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2,
OREG 3 and OREG 4; in Guatemala — Zunil and Amatitlan; in Kenya — Olkaria III; 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 February 28, 2011.
These forward-looking statements are made only as of the date hereof, and we undertake no
obligation to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
###
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Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)
Condensed Consolidated Statements of Operations
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (In thousands, except per | (In thousands, except per | |||||||||||||||
| share data) | share data) | |||||||||||||||
Revenues: |
||||||||||||||||
Electricity |
$ | 81,190 | $ | 68,807 | $ | 159,458 | $ | 134,912 | ||||||||
Product |
23,424 | 27,459 | 42,976 | 44,008 | ||||||||||||
Total revenues |
104,614 | 96,266 | 202,434 | 178,920 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Electricity |
62,212 | 63,498 | 128,149 | 118,021 | ||||||||||||
Product |
9,249 | 14,115 | 26,139 | 26,552 | ||||||||||||
Total cost of revenues |
71,461 | 77,613 | 154,288 | 144,573 | ||||||||||||
Gross margin |
33,153 | 18,653 | 48,146 | 34,347 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development expenses |
2,575 | 3,614 | 4,782 | 6,881 | ||||||||||||
Selling and marketing expenses |
3,725 | 2,686 | 6,385 | 5,888 | ||||||||||||
General and administrative expenses |
7,479 | 6,996 | 14,486 | 14,016 | ||||||||||||
Write-off of unsuccessful exploration activities |
— | 3,050 | — | 3,050 | ||||||||||||
Operating income |
19,374 | 2,307 | 22,493 | 4,512 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
716 | 95 | 851 | 292 | ||||||||||||
Interest expense, net |
(17,442 | ) | (9,426 | ) | (30,522 | ) | (19,140 | ) | ||||||||
Foreign currency translation and transaction gains (losses) |
596 | (1,033 | ) | 1,113 | (599 | ) | ||||||||||
Income attributable to sale of tax benefits |
3,141 | 2,070 | 5,280 | 4,209 | ||||||||||||
Other non-operating income (expense), net |
915 | 79 | 118 | (280 | ) | |||||||||||
Income
(loss) from continuing operations, before income taxes and equity in income (losses) of investees |
7,300 | (5,908 | ) | (667 | ) | (11,006 | ) | |||||||||
Income tax benefit |
1,007 | 3,365 | 421 | 5,922 | ||||||||||||
Equity in income (losses) of investees, net |
(69 | ) | 479 | (481 | ) | 1,025 | ||||||||||
Income (loss) from continuing operations |
8,238 | (2,064 | ) | (727 | ) | (4,059 | ) | |||||||||
Discontinued operations: |
||||||||||||||||
Income from discontinued operations, net of related tax |
— | — | — | 14 | ||||||||||||
Gain on sale of a subsidiary in New Zealand, net of related tax |
— | 570 | — | 4,336 | ||||||||||||
Net income (loss) |
8,238 | (1,494 | ) | (727 | ) | 291 | ||||||||||
Net loss (income) attributable to noncontrolling interest |
(105 | ) | 57 | (115 | ) | 110 | ||||||||||
Net income (loss) attributable to the Company’s stockholders |
$ | 8,133 | $ | (1,437 | ) | $ | (842 | ) | $ | 401 | ||||||
Weighted average number of shares used in computation of earnings (loss) per share
attributable to the Company’s stockholders: |
||||||||||||||||
Basic |
45,431 | 45,431 | 45,431 | 45,431 | ||||||||||||
Diluted |
45,443 | 45,431 | 45,431 | 45,431 | ||||||||||||
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Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2011 and December 31, 2010
(Unaudited)
Condensed Consolidated Balance Sheets
As of June 30, 2011 and December 31, 2010
(Unaudited)
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (In thousands) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 44,338 | $ | 82,815 | ||||
Marketable securities |
23,097 | — | ||||||
Restricted cash, cash equivalents and marketable securities |
28,713 | 23,309 | ||||||
Receivables: |
||||||||
Trade |
72,185 | 54,495 | ||||||
Related entity |
355 | 303 | ||||||
Other |
7,795 | 8,173 | ||||||
Due from Parent |
122 | 272 | ||||||
Inventories |
14,408 | 12,538 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts |
570 | 6,146 | ||||||
Deferred income taxes |
1,361 | 1,674 | ||||||
Prepaid expenses and other |
22,481 | 14,929 | ||||||
Total current assets |
215,425 | 204,654 | ||||||
Long-term marketable securities |
— | 1,287 | ||||||
Restricted cash, cash equivalents and marketable securities |
— | 1,740 | ||||||
Unconsolidated investments |
4,068 | 4,244 | ||||||
Deposits and other |
22,989 | 21,353 | ||||||
Deferred income taxes |
17,087 | 17,087 | ||||||
Deferred charges |
37,059 | 37,571 | ||||||
Property, plant and equipment, net |
1,417,931 | 1,425,467 | ||||||
Construction-in-process |
337,969 | 270,634 | ||||||
Deferred financing and lease costs, net |
19,609 | 19,017 | ||||||
Intangible assets, net |
38,676 | 40,274 | ||||||
Total assets |
$ | 2,110,813 | $ | 2,043,328 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ | 76,607 | $ | 85,549 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts |
18,818 | 3,153 | ||||||
Current portion of long-term debt: |
||||||||
Limited and non-recourse |
14,304 | 15,020 | ||||||
Full recourse |
14,775 | 13,010 | ||||||
Senior secured notes (non-recourse) |
20,622 | 20,990 | ||||||
Total current liabilities |
145,126 | 137,722 | ||||||
Long-term debt, net of current portion: |
||||||||
Limited and non-recourse |
107,390 | 114,132 | ||||||
Full recourse: |
||||||||
Senior unsecured bonds |
250,189 | 142,003 | ||||||
Other |
75,920 | 84,166 | ||||||
Revolving credit lines with banks |
151,461 | 189,466 | ||||||
Senior secured notes (non-recourse) |
203,382 | 210,882 | ||||||
Liability associated with sale of tax benefits |
78,519 | 66,587 | ||||||
Deferred lease income |
70,010 | 71,264 | ||||||
Deferred income taxes |
28,997 | 30,878 | ||||||
Liability for unrecognized tax benefits |
4,380 | 5,431 | ||||||
Liabilities for severance pay |
22,565 | 20,706 | ||||||
Asset retirement obligation |
20,684 | 19,903 | ||||||
Other long-term liabilities |
4,473 | 4,961 | ||||||
Total liabilities |
1,163,096 | 1,098,101 | ||||||
Equity: |
||||||||
The Company’s stockholders’ equity: |
||||||||
Common Sstock |
46 | 46 | ||||||
Additional paid-in capital |
722,522 | 716,731 | ||||||
Retained earnings |
216,362 | 221,311 | ||||||
Accumulated other comprehensive income |
729 | 1,044 | ||||||
| 939,659 | 939,132 | |||||||
Noncontrolling interest |
8,058 | 6,095 | ||||||
Total equity |
947,717 | 945,227 | ||||||
Total liabilities and equity |
$ | 2,110,813 | $ | 2,043,328 | ||||
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Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)
Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We
calculate adjusted EBITDA to include depreciation and amortization, interest and taxes attributable
to our equity investments in the Mammoth complex. EBITDA and adjusted EBITDA are not measurements
of financial performance or liquidity 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 cash provided by operating activities to EBITDA and adjusted
EBITDA, for the three and six- month periods ended June 30, 2011 and 2010:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||
Net cash provided by operating activities |
$ | 26,440 | $ | 10,694 | $ | 39,506 | $ | 58,934 | ||||||||
Adjusted for: |
||||||||||||||||
Interest
expense, net (excluding amortization of deferred financing costs) |
16,528 | 8,754 | 28,824 | 17,775 | ||||||||||||
Interest income |
(716 | ) | (95 | ) | (851 | ) | (292 | ) | ||||||||
Income tax benefit |
(1,007 | ) | (3,935 | ) | (421 | ) | (3,916 | ) | ||||||||
Adjustments
to reconcile net income to net cash provided by
operating activities (excluding depreciation and amortization) |
6,433 | 7,692 | 7,772 | (18,314 | ) | |||||||||||
EBITDA |
47,678 | 23,110 | 74,830 | 54,187 | ||||||||||||
Interest,
taxes, depreciation and amortization attributable
to the Company’s equity interest in Mammoth-Pacific L.P. |
— | 939 | — | 1,912 | ||||||||||||
Adjusted EBITDA |
$ | 47,678 | $ | 24,049 | $ | 74,830 | $ | 56,099 | ||||||||
Net cash used in investing activities |
$ | (27,817 | ) | $ | (44,033 | ) | $ | (135,741 | ) | $ | (109,014 | ) | ||||
Net cash provided by financing activities |
$ | 5,040 | $ | 44,423 | $ | 57,758 | $ | 57,968 | ||||||||
Depreciation and amortization |
$ | 24,635 | $ | 19,880 | $ | 48,005 | $ | 40,329 | ||||||||
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