Click here to close now.




















Welcome!

News Feed Item

Maxim Power Corp. Announces 2012 Third Quarter Financial and Operating Results

CALGARY, ALBERTA -- (Marketwire) -- 11/09/12 -- Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") announced today the release of financial and operating results for its third quarter ended September 30, 2012. The unaudited financial statements, accompanying notes and Management Discussion and Analysis will be available on SEDAR and on MAXIM's website on November 9, 2012. All figures reported herein are Canadian dollars unless otherwise stated.


FINANCIAL HIGHLIGHTS                                                        
                                                                            
                                Three Months Ended         Nine Months Ended
                                     September 30,             September 30,
($ in thousands except                                                      
 per share amounts)              2012         2011         2012         2011
Net revenue (1)            $   41,620   $   37,593   $  105,454   $  110,474
Adjusted EBITDA (1)            16,612       13,690       25,259       27,523
Adjusted net income (1)         9,765        5,404        9,946        5,973
Net income                      8,343       17,787        2,253       16,871
 Per share - basic and                                                      
  diluted                  $     0.15   $     0.33   $     0.04   $     0.31
Funds from operations                                                       
 (2)                           16,700       13,618       25,666       27,313
 Per share - basic and                                                      
  diluted                  $     0.31   $     0.24   $     0.47   $     0.50
Electricity Deliveries                                                      
 (MWh)                        354,976      335,268      834,992      907,808
Net Generation Capacity                                                     
 (MW) (3)                         788          809          788          809
Average Alberta Power                                                       
 Prices ($ per MWh)        $    78.09   $    94.69   $    59.48   $    76.26
Average Milner Realized                                                     
 Electricity Price                                                          
($ per MWh)                $   134.70   $    95.41   $    87.48   $    76.91
                                                                            
(1) Select financial information was derived from the unaudited condensed   
consolidated interim financial statements and is prepared in accordance with
Part 1 of the Canadian Institute of Chartered Accountants Handbook ("GAAP"),
except net revenue, adjusted EBITDA, and adjusted net income. Net revenue is
provided to highlight revenue net of any gains or losses realized on        
commodity swaps. Adjusted EBITDA is provided to assist management and       
investors in determining the Corporation's approximate operating cash flows 
before interest, income taxes, and depreciation and amortization and certain
other income and expenses, and adjusted net income is used to compare       
MAXIM's results among reporting periods without consideration of unrealized 
gains and losses and to evaluate MAXIM's performance. Net revenue, adjusted 
EBITDA, and adjusted net income do not have any standardized meaning        
prescribed by GAAP and may not be comparable to similar measures presented  
by other companies.                                                         
(2) Funds from operations is an Additional GAAP measure provided to assist  
management and investors in determining the Corporation's cash flows        
generated by operations before the cash impact of working capital           
fluctuations.                                                               
(3) Generation capacity is manufacturer's nameplate capacity net of minority
ownership interests of third parties.                                       

OPERATING RESULTS

Net revenue, adjusted EBITDA, and funds from operations increased in the third quarter of 2012 when compared to the third quarter of 2011. The increase in these financial measures is primarily due to higher generation and pricing at MAXIM's Pittsfield facility in the Northeast US as well as higher realized prices at Milner due to greater price volatility with Milner remaining predominantly unhedged to commodity prices in the third quarter of 2012.

Net income in the third quarter of 2012 was favourably affected by the aforementioned factors, partially offset by an unrealized (non-cash) loss on a derivative coal contract in 2012 as compared to an unrealized gain in 2011.

On a year to date basis, net revenue, adjusted EBITDA, net income and funds from operations have decreased from the prior year. The decrease in these financial measures is primarily due to a decline in Alberta power prices which had led to lower generation and impacted Milner results. Net income further decreased because of the previously mentioned unrealized loss on a derivative coal contract, which was partially offset by a gain from the sale of the APP facility.

AMENDMENT OF COAL CONTRACT

On November 8, 2012, the Corporation, through a subsidiary, amended one of its long-term coal supply agreements. The amended agreement will expire in 2015 and based on the current prices in the amended agreement, the purchase commitment remaining decreases by $20.1 million.

GROWTH INITIATIVES

Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the construction of the 190 MW D1 Station to commence during 2013. MAXIM received regulatory approvals in 2008 to construct and operate D1. The D1 site is located near Bruderheim in Alberta's Industrial Heartland, and it is in close proximity to the entry point of the proposed Gateway pipeline and adjacent to the existing Deerland high voltage substation. This area is expected to experience significant growth in electrical demand. D1 is the only permitted peaking development project in the province of Alberta as at the date of this press release. This project is attractive due to an anticipated contraction of reliable base load supply in the Alberta power market. As such, MAXIM expects peaking requirements across Alberta to continue to grow to meet increasing demand and to provide firm backup for additional intermittent wind resources. During the second quarter of 2012, MAXIM entered into an agreement to secure firm natural gas transportation services for D1.

Summit Coal Limited Partnership ("SUMMIT") Mine 14 Project

SUMMIT is wholly owned by MAXIM and was formed in 2011 to advance the Mine 14 Project. SUMMIT has achieved certain key milestones essential to commencing commercial operations of Mine 14. In 2011, the ERCB granted the license to commence underground mining of the Mine 14 coal reserve. SUMMIT has firm terminal capacity and terminal processing services to enable the majority of Mine 14's proposed coal production to access the valuable seaborne coking coal market commencing January 1, 2015. SUMMIT has also secured firm 2013 delivery dates for critical mining equipment, including continuous miners and shuttle cars. The field work for the 2012 exploration program was recently completed and MAXIM anticipates providing an updated Technical Report during the first quarter of 2013, which will contribute to the advancement of a strategic review related to SUMMIT's Mine 14 project.

Milner Expansion ("M2")

The AUC has granted MAXIM approval to develop a 500 MW generating facility adjacent to the existing 150 MW generating facility ("M1"). A lengthy public consultation and regulatory process culminated in the project's final approval by the AUC on August 10, 2011. On September 12, 2012 the Government of Canada enacted new greenhouse gas legislation that limits the amount of carbon dioxide emitted by coal-fired generation facilities. MAXIM is examining ways to meet the new standards including development of a natural gas-fired facility. All aspects are presently being studied to determine the most viable and effective course of action.

Buffalo Atlee ("B1")

MAXIM acquired the B1 Power Project, situated near Brooks, Alberta, through an amalgamation with EarthFirst Canada Inc. This project has the potential for development of over 200 MW of wind generation capacity. Wind data has been collected on the site for approximately five years and supports project development based on higher power prices than those realized during recent months. MAXIM holds an exploratory Crown land permit with a term of five years, expiring on January 1, 2016. The addition of wind generation to MAXIM's existing portfolio of assets will diversify MAXIM's generation fuel types and provide the potential to offset the impact of the new greenhouse gas legislation.

OUTLOOK

2012 Guidance

MAXIM's results are significantly impacted by Alberta spot power prices. In preparing its guidance, management uses Alberta forward electricity prices as a proxy for Alberta spot electricity prices. The market for forward contracts is relatively illiquid and forward prices may not be a good predictor of settled prices as they may not factor in events such as unplanned outages that can cause a significant increase in settled power prices. Notwithstanding, MAXIM prepares its guidance using forward electricity price from independent sources.

MAXIM is updating guidance that was provided on August 9, 2012 as follows:


($ in thousands except per share amounts)                                   
----------------------------------------------------------------------------
                                    Guidance provided on        Updated 2012
Select guidance KPI's                     August 9, 2012            Guidance
----------------------------------------------------------------------------
Adjusted EBITDA                                   34,300              37,200
Funds from operations                             34,900              37,700
Funds from operations per share -                                           
 basic and diluted ($ per share)                    0.65                0.70
Adjusted net income                               11,600              14,200
Adjusted net income per share -                                             
 basic and diluted ($ per share)                    0.21                0.26
Net income                                         6,100               8,000
Net income per share- basic and                                             
 diluted ($ per share)                              0.11                0.15
----------------------------------------------------------------------------

MAXIM's revised 2012 guidance reflects an increase in all of its guidance KPI's. The increase is primarily due to improved performance at the Pittsfield facility during the third quarter as well as greater volatility in Alberta spot prices during the third quarter and beginning of the fourth quarter.

These projections are based on MAXIM`s existing portfolio of assets, do not include the impact of possible acquisitions or the commercialization of development initiatives, and are based on the following assumptions:


                                    Guidance provided on        Updated 2012
Guidance Assumptions                      August 9, 2012            Guidance
----------------------------------------------------------------------------
Electricity deliveries (MWh):                                               
 HR Milner                                       722,227             645,550
 Other facilities                                532,942             557,898
----------------------------------------------------------------------------
 Total electricity deliveries                  1,255,169           1,203,448
Net generation capacity at year end                                         
 (MW)                                                796                 796
Capital expenditures (excluding                                             
 acquisitions):                                                             
 France repowering and peaking                                              
  facilities                                       9,300               9,100
 Development projects                             12,500               8,900
 Other assets                                      3,400               3,500
 HR Milner                                         1,600               2,100
----------------------------------------------------------------------------
 Total capital expenditures                       26,800              23,600
Average Alberta spot electricity                                            
 price ($/MWh)                                     64.80               63.86
Average annual foreign exchange                                             
 rates:                                                                     
 C$/USD                                             1.00                1.00
 C$/Euro                                            1.27                1.25
Weighted average shares outstanding                                         
 - basic (000's)                                  54,084              54,084
Weighted average shares outstanding                                         
 - diluted (000's)                                54,086              54,085
----------------------------------------------------------------------------

The decrease in Milner generation from 722,227 MWh per August 9, 2012 guidance to 645,550 MWh is a result of reduced generation during periods of lower power prices during the third quarter, which is expected to continue in the fourth quarter. This is partially offset by an increase in generation in the Northeast US during the third quarter, primarily due to transmission constraints and weather based demand at the Pittsfield facility.

Forecasted capital expenditures have decreased primarily to reflect a deferral in the construction timeline for Deerland from 2012 to 2013.

CONFERENCE CALL FOR 2012 THIRD QUARTER RESULTS

MAXIM will host a conference call for analysts and investors on Friday November 9, 2012 at 11:30 am MT. The call will be hosted by John Bobenic, MAXIM's President and Chief Executive Officer, and by Mike Mayder, Vice President, Finance and Chief Financial Officer. To participate in this conference call, please dial (866) 696-5910 or (416) 340-2217 in the Toronto area. It is recommended that participants call at least ten minutes prior to start time.

A recording of the conference call will be available from November 9, 2012 to November 16, 2012. To access the replay, dial (800) 408-3053 or (905) 694-9451 followed by the passcode 6805469. In addition, the recording will be available commencing November 9, 2012 in the Investor Relations section of MAXIM's website at www.maximpowercorp.com.

About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power and power related projects. MAXIM currently owns and operates 40 power plants in western Canada, the United States and France, having 788 MW of electric and 111 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward- looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

Contacts:
Maxim Power Corp.
John R. Bobenic
President and CEO
(403) 750-9300

Maxim Power Corp.
Michael R. Mayder
Vice President, Finance and CFO
(403) 750-9311
www.maximpowercorp.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
Moving an existing on-premise infrastructure into the cloud can be a complex and daunting proposition. It is critical to understand the benefits as well as the challenges associated with either a full or hybrid approach. In his session at 17th Cloud Expo, Richard Weiss, Principal Consultant at Pythian, will present a roadmap that can be leveraged by any organization to plan, analyze, evaluate and execute on a cloud migration solution. He will review the five major cloud transformation phases a...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
eCube Systems has released NXTmonitor, a full featured application orchestration solution. NXTmonitor, which inherited the code base of NXTminder, has been extended to support multi-discipline processes and will act as a DevOps utility in a heterogeneous enterprise environment. Previously, NXTminder was packaged with NXTera middleware to configure and manage Entera and NXTera RPC servers. “Since we are widening the focus of this solution to DevOps, we felt the need to change the name to NXTmon...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.