Click here to close now.

Welcome!

News Feed Item

Maxim Power Corp. Announces 2014 Second Quarter Financial and Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 08/05/14 -- Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today the release of financial and operating results for the second quarter ended June 30, 2014. The unaudited condensed consolidated interim financial statements, accompanying notes and Management Discussion and Analysis will be available on SEDAR and on MAXIM's website on August 5, 2014. All figures reported herein are Canadian dollars unless otherwise stated.


FINANCIAL HIGHLIGHTS                                                        
----------------------------------------------------------------------------
                                     Three Months Ended     Six Months Ended
                                                June 30              June 30
($ in thousands except per share                                            
 amounts)                               2014       2013      2014       2013
----------------------------------------------------------------------------
Revenue                            $  19,138  $  36,383 $  88,270  $  91,887
Adjusted EBITDA (1)                   (3,604)    14,337    12,969     28,404
Adjusted net income (loss) (1)        (4,566)     5,720      (751)    10,710
  Per share - basic and diluted    $   (0.08) $    0.11 $   (0.01) $    0.20
Net income (loss) attributable to                                           
 shareholders                         (4,325)     6,446      (838)    11,032
  Per share - basic and diluted    $   (0.08) $    0.12 $   (0.02) $    0.20
FFO (2)                               (3,922)    13,021    11,079     27,135
  Per share - basic and diluted    $   (0.07) $    0.25 $    0.20  $    0.51
Electricity Deliveries (MWh)         219,644    191,683   557,865    493,885
Net Generation Capacity (MW) (3)         785        804       785        804
Average Alberta power price -                                               
 market ($ per MWh)                $   42.43  $  123.41 $   51.46  $   94.52
Average Alberta power price -                                               
 Milner realized ($ per MWh)       $   51.73  $  178.59 $   65.06  $  134.78
Average US power price - Northeast                                          
 U.S. realized (US$ per MWh)       $   56.65  $   97.63 $  234.02  $  171.01
                                                                            
(1) Select financial information was derived from the unaudited condensed   
    consolidated interim financial statements and is prepared in accordance 
    with IFRS, except adjusted EBITDA and adjusted net income (loss).       
    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. Adjusted net income (loss) is used to compare
    MAXIM's results among reporting periods without consideration of        
    unrealized gains and losses and to evaluate MAXIM's performance.        
    Adjusted EBITDA and adjusted net income (loss) do not have any          
    standardized meaning prescribed by IFRS and may not be comparable to    
    similar measures presented by other companies.                          
                                                                            
(2) Funds from operating activities before changes in working capital       
    ("FFO") 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

Revenue, adjusted EBITDA, adjusted net income (loss), net income (loss) attributable to shareholders and FFO decreased in the second quarter of 2014 when compared to the second quarter of 2013. The decrease in these financial measures is primarily due to lower power prices in both Alberta and the Northeast U.S.

On a year to date basis, revenue, adjusted EBITDA, adjusted net income (loss), net income (loss) attributable to shareholders and FFO decreased in 2014 when compared to 2013. The decrease in these financial measures is primarily due to lower power prices in Alberta, partially offset by higher power prices and generation in the Northeast U.S.

ALBERTA UTILITIES COMMISSION ("AUC") LOSS FACTOR DECISION

As previously reported, the AUC has upheld the complaint made by the Corporation that the current ISO Line Loss Rules contravene the Transmission Regulation and are unjust, unreasonable, unduly preferential, arbitrarily or unjustly discriminatory and inconsistent with or in contravention of the 2003 Electric Utilities Act (AUC Decision 2014-110). The AUC is proceeding with the second phase of its consideration of Milner's complaint to determine the relief or remedy to be given and is expected to issue a process letter during the third quarter.

FEDERAL ENERGY REGULATORY COMMISSION ("FERC") INQUIRY

As previously reported, MAXIM and its external legal counsel have made a submission to FERC and FERC's Office of Enforcement refuting the allegations made in the Office of Enforcement's preliminary findings on this matter. Neither FERC nor its Office of Enforcement has responded to MAXIM's submission.

SALE OF MAXIM POWER (B.C.) INC.

On July 17, 2014, MAXIM closed the sale of its wholly-owned subsidiary, Maxim Power (B.C.) Inc. ("Maxim BC") to Village Farms International, Inc. Maxim BC owns and operates the Vancouver Landfill Power Project, a 7.4 MW electrical and 9.1 MW thermal energy landfill gas cogeneration project in Delta, BC. Proceeds from the sale are $5.2 million and will be utilized for strategic corporate purposes. This transaction concludes the sale of MAXIM's investments in British Columbia, with the sale of MAXIM's other B.C. asset, the Hartland Generating Facility, in 2013. The sale of these two investments resulted in an approximate net gain of $128 thousand.

COMAX FRANCE S.A.S. ("COMAX") CAPITAL PROGRAM

COMAX has secured debt financing of $8.8 million (6.0 million Euro) for four of its five 2014 renovation projects. The terms of the loans are favorable with leverage ranging from 80% to 91% of the project investment and fixed interest rates ranging from 3.0% to 4.5%. MAXIM anticipates securing the debt financing for the fifth project in August 2014. Total 2014 capital expenditures related to the renovation program in COMAX are anticipated to be $14.4 million (9.8 million Euro) of which $12.0 million (8.2 million Euro) will be financed with debt. COMAX has revised the scope of two of its 2014 renovation projects in addition to deferring two additional renovation projects, originally included in the 2014 renovation program scope, to early 2015.

GROWTH INITIATIVES

Summit Coal Limited Partnership ("SUMMIT")

SUMMIT is MAXIM's development initiative located north of Grande Cache, Alberta that owns metallurgical coal leases for Mine 14 ("M14") and Mine 16S ("M16S"). This initiative is construction ready and is the most advanced metallurgical coal mine development project in North America.

Current estimates for M14 are 18.9 million tonnes of low-mid volatile metallurgical coal reserves with a mine life of 17 years based on the NI 43-101 Technical Report filed on SEDAR on March 21, 2013. M16S is located 30 kilometers northwest of M14 and represents 1,792 hectares or 29% of SUMMIT's total area of coal leases. A NI 43-101 Technical Report has not been prepared for the Mine 16S property. The coal quality of M14 has been tested by numerous potential buyers and independent labs and is a very coveted mid to low volatility coking coal with other attributes which are best-in-class.

The Corporation considers the advancement of the M14 and M16S development projects strategic for MAXIM primarily because of the value of metallurgical coal and partially due to Milner's ability to utilize tailings and lower quality fuels, which are by-products of the beneficiation of coal, to produce electricity. All monetization options including: i) construction, own and operate, ii) joint venture or iii) outright sale, have been preserved for SUMMIT and the evaluation of these options is ongoing.

Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the full-scale construction of the 190 MW D1 Station. This project is attractive due to an anticipated contraction of reliable base load supply in the Alberta power market. MAXIM had previously received regulatory approvals to construct and operate D1 and has entered into an agreement to secure firm natural gas transportation services. 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.

Milner Expansion ("M2")

On June 4, 2014, the AUC approved MAXIM's application to convert the fuel source for the M2 project from coal to natural gas and to increase the generating capacity of the proposed expansion from 500 MW to 520 MW. The M2 facility would be adjacent to the existing 150 MW Milner generating facility. The existing infrastructure at the Milner site allows MAXIM to leverage benefits including electrical connection, fuel delivery, water licenses and a skilled operations team. The Corporation incurred costs in 2014 related to engineering and consulting work for permit amendments and will incur further costs in 2014 on engineering consultation.

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 six years and supports project development based on expected new provincial greenhouse gas legislation and/or higher power prices than currently forecasted. 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 expected new provincial greenhouse gas legislation.

CONFERENCE CALL FOR Q2 2014 RESULTS

MAXIM will host a conference call for analysts and investors on Wednesday, August 6, 2014 at 11:00 am MDT. 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 (877) 223-4471 or (647) 788-4922 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 August 6, 2014 to August 13, 2014. To access the replay, dial (800) 585-8367 or (416) 621-4642 followed by the passcode 79725472. In addition, the recording will be available commencing August 6, 2014 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 39 power plants in Alberta, the United States and France, having 777 MW of electric 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
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
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 to 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...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"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.
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...