Click here to close now.

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
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Alert Logic provides Security-as-a-Service for on-premises, cloud, and hybrid IT infrastructures, delivering deep security insight and continuous protection for cust...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
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...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th 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 no time to wait for long development...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
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...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner. 20,000+ business custome...
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.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...