VANCOUVER, BC,
Nov. 28, 2012 /CNW/ - Run of River
Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today
announced financial and operating results for the quarter ended
September 30, 2012. The consolidated
financial statements and management discussion and analysis will be
filed to SEDAR and posted on ROR Power's website
(www.runofriverpower.com). All figures reported herein are in
Canadian dollars unless otherwise stated.
Highlights
- Completed a private placement of $3.65
million in subordinated secured debentures bearing interest
at 12%.
- The Company continued construction on the 25 MW Skookum Creek
Power Project (the "Project").
- All major permits and licences for the Project have been issued
and received.
- Brandywine production and revenues down in Q3 due primarily to
hydrological conditions and decreased performance on one of
Brandywine's turbines.
"Q3 was a milestone quarter for the Company as construction went
into high gear on the 25 MW, $96
million Skookum Creek Power Project. The Company
is targeting to have the Project fully commissioned and operating
on or before the first quarter of 2014." stated Richard W. Hopp, ROR Power's President and
CEO.
Financial Summary
($000's except per share and generation
amounts) |
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|
2012 |
2011 |
2012 |
2011 |
Electricity sales
EBITDA
Loss
Basic and diluted loss per share
Cash flow from (used in) operations
Total assets
Long-term debt
Generation-MWh |
725
312
(328)
(0.00)
290
29,178
13,437
12,098 |
960
424
(99)
(0.00)
(214)
16,521
13,858
16,206 |
1,535
43
(1,867)
(0.02)
178
29,178
13,437
25,619 |
1,657
(534)
(2,126)
(0.02)
(863)
16,521
13,858
27,971 |
(1) EBITDA
is earnings before interest, taxes, depreciation and amortization
and is not a measure under International Financial Reporting
Standards ("IFRS") and may not be comparable to similar measures
presented by other companies. Refer to Non-GAAP measures section of
the MD&A for an explanation and reconciliation.
Operating Results
Q3 2012 electricity sales of $724,945 decreased $235,188 or 24.5% from Q3 2011 sales of
$960,133 as a direct result of
decreased electricity generated to 12,098 MWh from 16,206 MWh.
Electricity production was down due to lower than normal hydrology
conditions for the quarter and reduced output from one of the
generating units at the plant. September was the driest month on
record in over 100 years which contributed to the majority of the
reduction in electricity generated for the quarter. YTD 2012
electricity sales of $1,535,179
decreased $121,935 or 7.4% from 2011
YTD sales of $1,657,114. YTD
production decreased 8.4% to 25,619 MWh from 27,971 MWh, reflecting
the Q3 hydrology conditions and reduced generating efficiency on
one of the units.
The Corporation recorded a loss for the third
quarter of $327,535 compared to a
loss of $99,251 for the comparable
quarter in 2011. The increase in the net loss is a result of a
decrease in electricity sales and an increase in financing costs.
YTD loss decreased $259,257 to
$1,866,605 compared to 2011 YTD loss
of $2,125,862. The loss, before
impairment, would have been $1,587,399 for 2012 YTD, an improvement of
$538,463 compared to the YTD results
of 2011, due primarily to reduced G&A during the period.
Funds from operations were $290,321 in the third quarter of 2012 compared to
funds used in operations of $213,820
for the third quarter of 2011. YTD funds from operations were
$177,679 compared to funds use of
$862,620 for the comparable nine
month period in 2011. The change in funds used in operations for
the 2012 quarter and YTD is due primarily to changes in working
capital and reduced G&A.
Financial Position
On July 26, 2012
the Company completed a private placement of $3.65 million in subordinated secured debentures
("Debentures"). The principal amount of the Debentures will bear
interest at a rate of 12% per annum, payable quarterly in cash, and
the Debentures will mature in one year. The proceeds of the private
placement will be used to develop, with its partner Concord
Pacific, the Skookum Power Project and for general corporate and
working capital requirements.
Non-GAAP Measures
The Company reports its financial position, results of
operations and cash flows in accordance with International
Financial Reporting Standards ("IFRS").
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy
through its portfolio of clean energy projects. The company helps
diversify BC's energy mix by providing a cleaner way to generate
power and increasing the security of BC's energy supply. ROR Power
operates an Eco Logo© certified hydroelectric power generation
station at Brandywine Creek, near Whistler, BC that provides green power for
about 4,000 homes. With a total development potential of
approximately 400 MW, the company is well positioned for profitable
growth.
Forward-Looking Statements
Statements in this release which describe Run of
River Power Inc.'s intentions, expectations or predictions, or
which relate to matters that are not historical facts are
forward-looking statements. These forward-looking statements
involve unknown risks and uncertainties which may cause the actual
results, performances or achievements of Run of River Power Inc. to
be materially different from any future results, performances or
achievements expressed in or implied by such forward-looking
statements. Run of River Power Inc. 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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Run of River Power Inc.