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
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
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, introduced the technologies required for implementing these idea...
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, 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 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
SYS-CON Events announced today that Enzu 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.