Welcome!

News Feed Item

Ram Power Announces 2013 Year End Results

RENO, NV -- (Marketwired) -- 03/31/14 -- Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce its operating results for the fiscal year ended December 31, 2013. This earnings release should be read in conjunction with Ram Power's financial statements, and management's discussion and analysis ("MD&A"), which are available on the Company's website at www.ram-power.com and have been posted on SEDAR at www.sedar.com.

HIGHLIGHTS

San Jacinto-Tizate Project

  • The San Jacinto-Tizate Power Plant generated 423,998 (net) MWh resulting in revenue of $46.2 million for the year ended December 31, 2012 (an increase of 65% over 2012) and EBITDA (as defined below) of $30.5 million in 2013 compared to revenue of $28.1 million and EBITDA of $9.7 million in 2012;
  • Well SJ 12-3 was placed in commercial operation following an extensive thermal recovery period in late February, 2014. Well head temperature and pressures continue to oscillate since being placed into production, but will stabilize over time and the well is currently producing between 7-10 MW.
  • Well SJ 9-3 continues to be in thermal recovery. The Company has made four attempts to tie in the well into the plant after nine weeks of thermal recovery. SJ 9-3, when achieving well head pressure necessary for the operating pressure of the plant, has demonstrated a production output between 7-10 MW. The well continues to show improved thermal recovery of temperature and pressure, but will continue to be shut in for periods of time over coming weeks to allow for complete stabilization.

Corporate Update

  • The Company entered into a letter of intent on January 14, 2014 with an interested party for the purchase and sale of the Geysers Project. The Company is in the final stages of negotiating a purchase and sale agreement, and intends to execute an agreement in the immediate future. The Company anticipates an expected close and funding of the sale by April 30, 2014.
  • The Company continues to work with Dundee Securities on the strategic process, and expects letters of intent from interested parties by mid-April 2014.
  • The Company continues the process of selling and / or disposing of all non-core assets to focus its efforts on maximizing the cash flow and profitability of the Company's producing assets in Nicaragua. Accordingly, the Company has made the strategic decision to close the Reno, Nevada office effective May 31, 2014.

FINANCIAL OVERVIEW

The financial results of Ram Power for the year ended December 31, 2013 and 2012 are summarized below:



                                             ------------------------------
                                                       Year ended
                                              December 31,    December 31,
(all figures in U.S dollars)                      2013            2012
                                             ------------------------------
                                                              (As restated)
Total revenue                                $   46,210,054  $   28,061,520
Other direct costs                               (6,164,893)     (4,359,874)
Depreciation and amortization of plant
 assets                                         (24,500,650)    (12,514,916)
General and administrative expenses              (9,609,351)    (12,152,374)
Other operating income (costs)                       96,295      (1,879,975)
Operating income (loss)                           6,031,455      (2,845,619)
Recovery (loss) on impairment                   (20,348,852)    (42,518,283)
(Loss) gain on warrant liability valuation       (4,431,225)     (5,008,947)
Loss on prepayment option valuation               4,624,518               -
Other loss                                          460,489       8,477,149
Deferred taxes                                   (8,224,431)     (6,391,495)
Total loss and comprehensive loss               (50,935,278)    (60,181,461)
Total loss and comprehensive loss per share  $        (0.17) $        (0.21)

                                             ------------------------------
                                             As at December  As at December
                                                31, 2013        31, 2012
                                             ------------------------------
                                                               (As restated)
Total assets                                 $  457,959,404  $  506,823,848
Long-term debt                                  239,841,360     210,591,894
Total liabilities                               295,537,930     300,933,868
Cash                                             22,549,994      51,330,351
Working capital                                   6,329,850     (11,325,167)


For the year ended December 31, 2013, the Company reported revenue of $46.2 million and a total loss and comprehensive loss of $50.9 million, or $(0.17) per share, compared to revenue of $28.1 million and a total loss and comprehensive loss of $60.2 million, or $(0.21) per share, for 2012. The 65% increase in revenue resulted from commencing operations of the San Jacinto Phase II expansion in January 2013. Total loss and comprehensive loss for year ended December 31, 2013 was the result of non-cash depreciation and amortization expense of $24.5 million, a one-time loss on impairment of the Geysers and other North America projects of $20.3 million, deferred tax expense of $8.2 million and nonrecurring corporate restructuring costs of $1.3 million.

EBITDA increased to $30.5 million for the year ended December 31, 2013 compared to $9.7 million for the prior year. The $20.8 million increase in EBITDA for the year ended December 31, 2013 principally resulted from an $18.1 million increase in revenue and a $4.5 million decrease in general and administrative expenses and other operating costs, offset by increases in direct costs of plant operations of $1.8 million.

For the year ended December 31, 2013, the Company had net operating cash inflows of $8.4 million, net investing cash outflows of $20.4 million and net financing cash outflows of $16.8 million, which combined for a net decrease in cash of $28.8 million. The Company expended $24.8 million for additions to geothermal properties, including $8 million related to completion of Phase II of the San Jacinto expansion and $19.2 million related to San Jacinto drilling costs. At December 31, 2013, the Company had cash of $22.5 million, of which $19.9 million was held for current use in the San Jacinto project.

Antony Mitchell, Executive Chairman of Ram Power, said, "I am proud of what we have accomplished in 2013. Through a hard look at our overhead costs, we have emerged a leaner Company, with a sharp focus on the execution of our immediate goal of returning San Jacinto closer to its design capacity. And though the process of thermal recovery from our remediation program has taken longer than expected, I would like to thank our shareholders who continue to support the Company as we continue to work to maximize value for shareholders."

CORRECTION OF ERROR

In its financial statements for the year ended December 31, 2013, the Company determined the calculation of deferred income tax expense was in error for previously issued financial statements for the year ended December 31, 2012. The Company incorrectly recognized deferred tax assets related to net operating losses in PENSA. Nicaraguan law changed at the end of 2012, resulting in restrictions on the recognition of NOLs after a tax holiday. The law was substantially enacted by December 31, 2012. This change resulted in a $6.4 million understatement of 2012 deferred tax expense. As a result of this error, the previously reported balances of deferred tax liability and accumulated deficit as at December 31, 2012, were misstated and certain previously reported amounts in the consolidated statements of operations and comprehensive loss, consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the year ended December 31, 2012 were misstated. The amount of the error was significant, and the Company has restated the financial statements for the year ended December 31, 2012 to correct the error. Accordingly, the Company has restated its financial statements for the year ended December 31, 2012 to correct the error. The error and its correction had no effect on the Company's cash flows or cash balances. The restated financial statements and MD&A are available on the Company's website at www.ram-power.com and have been posted on SEDAR under the Company's profile at www.sedar.com.

Ram Power will hold its earnings call to discuss the year ending December 31, 2013 financial and operating results on Monday, April 7, 2014 at 10:00 am EDT (7:00 am PDT). To listen to the call, please dial 1-866-696-5910 by entering the participant pass code 1658549, or on the web at http://bell.media-server.com/m/p/xvc6oofu.

About Ram Power, Corp.

Ram Power is a renewable energy company engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America.

USE OF NON-GAAP MEASURES

Certain non-GAAP measures referenced in this news release have no standardized meaning under International Financial Reporting Standards ("IFRS") and, therefore, are unlikely to be comparable to similar measures presented by other issuers. Where we reference non-GAAP measures, we provide definitions. For example, EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. EBITDA is most directly comparable to the GAAP measure operating income or loss, except depreciation and amortization expenses of plant assets are excluded in the calculation of EBITDA. Accordingly, where EBITDA measures are disclosed by the Company, they equal operating income or loss plus depreciation and amortization of plant assets. Although a non-GAAP measure, management believes users of the Company's financial information find EBITDA useful in assessing the Company's financial performance. In the Company's earnings releases, consolidated financial statements and MD&As, unless otherwise noted, all financial data is prepared in accordance with IFRS.

Cautionary Statements

This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenue, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this news release, including such forward-looking information, is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power assumes no obligation to update or revise such information to reflect new events or circumstances.

Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email: Email Contact
www.ram-power.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
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...