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
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, 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. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, 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. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.