Welcome!

News Feed Item

Ram Power Announces 2014 Second Quarter Results

RENO, NV -- (Marketwired) -- 08/12/14 -- 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 quarter ended June 30, 2014. 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 104,356 (net) MWh resulting in revenue of $11.7 million for the quarter ended June 30, 2014 (a decrease of 11% over the same period in 2013) and EBITDA (as defined below) of $8 million in second quarter 2014 compared to revenue of $13.2 million and EBITDA of $9 million in second quarter 2013. Revenue and EBITDA for the six months ended June 30, 2014 were $22.4 and $15.5 million, respectively and $25.1 and $16.8 million, respectively for the same period in 2013. The decline was caused by wells offline for the drilling remediation program during the first part of the year and the turbine overhaul in June;
  • In May 2014, the Company completed the 30-day stabilization period and the 7-day performance test of the resource field for the San Jacinto project. In accordance with the amendment to the project's credit facilities, the Company concluded a 30-day stabilization period on May 18th, followed immediately by a 7 day performance test which concluded on May 25th. During the 7-day performance test, the Project produced an average of 57.8 MW (gross) / 52.7 MW (net).

Corporate Update

  • In April 2014, the Company successfully completed the previously announced transaction with U.S. Geothermal Inc. for the sale of the Geysers project for a total of $6.4 million in cash. The Company's subsidiaries acquired by U.S. Geothermal Inc. as part of the acquisition were Western Geopower, Inc., Skyline Geothermal Holdings, Inc., and Etoile Holdings, Inc., which in turn includes all membership interests in Mayacamas Energy LLC and Skyline Geothermal LLC.
  • As previously disclosed, Ram Power formed a Mergers and Acquisitions Committee to explore and evaluate a broad range of strategic alternatives for the Company to enhance shareholder value. Dundee Securities Ltd. was appointed as financial advisor on the strategic alternatives review process, and is continuing to examine a range of strategic alternatives which may include the acquisition or disposition of assets, joint ventures, the sale of the Company, alternative operating models including maximizing operational efficiencies, or continuing with the current business plan, among other potential alternatives.

FINANCIAL OVERVIEW

The financial results of Ram Power for the three and six months ended June 30, 2014 and 2013 are summarized below:


                      Three months ended             Six months ended
(all figures in
 U.S dollars)    June 30, 2014  June 30, 2013  June 30, 2014  June 30, 2013
                 -------------  -------------  -------------  -------------
Total revenue    $  11,720,327  $  13,201,640  $  22,443,631  $  25,100,370
Other direct
 costs              (1,723,519)    (1,455,511)    (3,211,809)    (2,703,067)
Depreciation and
 amortization of
 plant assets       (6,515,746)    (6,126,158)   (12,929,052)   (12,259,520)
General and
 administrative
 expenses           (1,872,571)    (2,727,422)    (3,432,051)    (5,604,245)
Other operating
 income (costs)       (107,478)       (45,825)      (290,574)        37,333
Operating income     1,501,013      2,846,724      2,580,145      4,570,871
Loss on
 impairment            (97,915)   (18,663,852)     2,615,342    (18,663,852)
Gain on warrant
 liability
 valuation            (334,583)    (1,711,229)     1,083,612      3,015,122
Gain on
 prepayment
 option
 valuation           2,516,000      1,556,974     (1,357,000)    (1,556,974)
Other gains
 (losses)           (6,181,084)     1,863,263       (341,975)       805,303
Current and
 deferred tax
 expense            (1,865,110)    (2,056,108)    (3,751,777)    (4,112,216)
Total loss and
 comprehensive
 loss              (11,047,080)   (21,934,014)   (12,357,552)   (31,918,463)
Total loss and
 comprehensive
 loss per share  $       (0.03) $       (0.08) $       (0.03) $       (0.11)


                                                                  As at
                                                   As at       December 31,
                                               June 30, 2014       2013
                                               -------------  -------------
Total assets                                   $ 437,632,141  $ 457,959,404
Long-term debt                                    46,406,978    239,841,360
Total
 liabilities                                     287,431,868    295,537,930
Cash                                              18,802,574     22,549,994
Working capital                                    2,760,677      6,329,850

For the quarter ended June 30, 2014, the Company reported revenue of $11.7 million and a total loss and comprehensive loss of $11 million, or $(0.03) per share, compared to revenue of $13.2 million and a total loss and comprehensive loss of $21.9 million, or $(0.08) per share, for second quarter 2013. The 11% decrease in revenue resulted from wells offline for the drilling remediation program in 2014 and downtime related to a scheduled turbine overhaul in June. Total loss and comprehensive loss for quarter ended June 30, 2014 was the result of non-cash depreciation and amortization expense of $6.5 million, deferred tax expense of $1.9 million and other losses related to the valuation of the company's derivatives of $4 million.

EBITDA of $8 million for the quarter ended June 30, 2014 declined 11% compared to EBITDA of $9 million for the same period in 2013. The decrease principally resulted from a decrease in revenue of $1.5 million and increases in direct costs of $0.7 million, offset by cost savings in general and administrative expenses of $0.9 million.

The Company recognized a net loss of $12.4 million for the six months ended June 30, 2014 compared to a net loss of $31.9 million for the same period in 2013, which resulted in a decreased loss of $19.5 million due to various factors, including $21.3 million decrease related to impairment losses on the Geysers project offset by a $2.7 million increase related to decreased revenue from the San Jacinto project. Revenue for the six months ended June 30, 2014 of $22.4 million was $2.7 million less than revenue for the same period in 2013 of $25.1 million. EBITDA for the first six months of 2014 of $15.5 million also declined by 11% compared to $16.8 million for the same period in 2013. The drilling remediation program and turbine overhaul contributed to the decline.

For the six months ended June 30, 2014, the Company had net operating cash inflows of $4.3 million, net investing cash inflows of $2 million and net financing cash outflows of $10 million, which combined for a net decrease in cash of $3.7 million. The Company expended $5.3 million for additions to geothermal properties, principally related to San Jacinto drilling and turbine overhaul costs. At June 30, 2014, the Company had cash of $18.8 million, of which $14.6 million was held for current use in the San Jacinto project.

The Company reduced corporate financing costs and corporate overhead in 2013 through refinancing the corporate credit facility and restructuring the corporate office. As a result, we expect interest on corporate debt to be approximately $4 million and corporate costs, including North America project costs, to be approximately $4 million this year. The Company expects the corporate cash on hand as of June 30, 2014 of $4.3 million will allow the Company to continue to satisfy its obligations through January 2015, allowing the Company time to complete the strategic process.

"I'd like to thank our shareholders for their continued patience while we continue to work through the strategic process for the Company," stated Antony Mitchell, Executive Chairman of Ram Power. "During the second quarter, we successfully sold the Geysers project which allows for liquidity through the end of year. Additionally, we are working closely with our lender group, interested parties and the Government of Nicaragua to have a transaction which will maximize our shareholder value."

Ram Power will hold its earnings call to discuss the quarter ending June 30, 2014 financial and operating results on Wednesday, August 13, 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 7077888, or on the web at http://bell.media-server.com/m/p/zri7iuds.

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
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International 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 ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
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...
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...