VANCOUVER, Aug. 29, 2013 /CNW/ - Run of River Power Inc.
("ROR Power" or "the Company") (TSX-V: ROR) today announced
financial and operating results for the quarter ended June 30, 2013. The condensed consolidated interim
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.
"ROR is very pleased to report that the Company continues to
meet its objectives to enhance shareholder value through cost
reductions, Brandywine performance and operations optimization
upgrades and the realization of the 25MW Skookum Creek Power
Project," stated Richard Hopp, ROR
Power's President and CEO. "We are nearing completion of the
Skookum Creek Project and, as planned, will be generating power to
the BC Hydro grid by the New Year. Completion of the project
will result in significant long term cash flows to ROR and along
with our efforts to rebalance our Balance Sheet will put ROR on a
solid footing with long term sustainable cash flows. The Company
also thanks its shareholders for their persistence and support to
get to where we are today", remarked Mr. Hopp.
Highlights
During the second quarter ended June 30,
2013 revenue increased 9.8% to $734,472 compared with the second quarter of 2012
due mainly to the increased electricity production as a result of
the runner upgrade carried out at the Brandywine facility and the
reduction in general and administrative costs. After adjusting for
net unrealized gains on derivative financial instruments, the net
loss for the quarter would have been $329,483 compared to $356,760 for the previous year.
The recognition of net earnings for the three and six month
periods ended June 30, 2013, compared
with a net loss for the same periods in 2012, is attributable to
unrealized gains on derivative financial instruments.
The following table outlines the impact on net earnings (loss)
of the unrealized net gain (loss) on derivative financial
instruments:
|
|
|
|
|
|
|
|
|
|
(In $'s) |
|
|
Three months |
|
|
Six months |
For the periods ended June 30 |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
Net income
(loss) |
|
|
3,230,950 |
|
|
(356,760) |
|
|
2,258,149 |
|
|
(1,539,070) |
(Subtract)
Unrealized gain on
derivative financial instruments |
|
|
(3,560,433) |
|
|
- |
|
|
(3,560,433) |
|
|
- |
Adjusted Net Loss |
|
|
(329,483) |
|
|
(356,760) |
|
|
(1,302,284) |
|
|
(1,539,070) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Summary
|
($000's except per share and generation
amounts) |
Three Months
Ended
June 30 |
Six Months Ended
June 30 |
|
2013 |
2012 |
2013 |
2012 |
Electricity sales |
734 |
669 |
860 |
810 |
EBITDA |
3,817 |
162 |
3,426 |
(270) |
Net Income (Loss) |
3,231 |
(357) |
2,258 |
(1,539) |
Basic and diluted earnings (loss) per share |
0.03 |
(0.01) |
0.02 |
(0.02) |
Cash flow (used) from in operations |
424 |
361 |
(171) |
(113) |
Total assets |
29,263 |
27,097 |
29,263 |
27,097 |
Long-term debt |
11,530 |
13,541 |
11,530 |
13,541 |
Generation-MWh |
12,206 |
11,165 |
14,286 |
13,521 |
(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
For the three month period ending June
30, 2013 ("Q2 2013") electricity sales of $734,472 increased $65,394 or 9.8% compared to the three month
period ending June 30, 2012 ("Q2
2012") sales of $669,078 as a direct
result of increased electricity generated to 12,206 MWh from 11,165
MWh. For the six month period ending June 30, 2013 ("YTD") electricity sales of
$859,630 increased $49,396 or 6.1% compared to the six month period
ending June 30, 2012 ("2012 YTD")
sales of $810,234. YTD production
increased 5.7% to 14,286 MWh from 13,521 MWh. The increase in
electricity generation and sales is attributable to increased
conversion effectiveness as a result of the Brandywine runner
upgrade completed in June 2013, using
similar hydrology for comparative quarters.
The Corporation recorded net income for the second quarter of
$3,230,950 compared to a loss of
$356,760 for the comparable quarter
in 2012. YTD net income of $2,258,149
increased $3,797,219 from the YTD
2012 loss of $1,539,070. The
significant increase in net income is a result of net unrealized
gains recorded on derivative financial instruments. The net loss
before unrealized gains ("Adjusted Net Loss") for three and six
month period ending June 30, 2013 is
$329,483 and 1,302,284
respectively.
The Adjusted Net Loss for Q2 2013 decreased 27,277 to
$329,483 from Q2 2012 net loss of
$356,760. The Company incurred a YTD
Adjusted Net Loss of $1,302,284
compared to a net loss of $1,539,070,
a decrease of $236,786 or
15.4%. The decreased in the Adjusted Net Loss compared to the
YTD 2012 net loss is a result of increased production at the
Brandywine Facility and a reduction in G&A.
Funds from operations were $424,103 in the second quarter of 2013 compared
to funds used in operations of $361,286 for the second quarter of 2012.
YTD funds used in operations were $170,700 compared to $112,642 for the comparable six month period in
2012. The change in funds used in operations for the 2013 quarter
and YTD is due primarily to changes in working capital.
Financial Position
At June 30, 2013,
the Company had $1.0M in cash on
hand. These cash resources will be used to fund operations.
The Company will need to raise capital to support its
administrative obligations, pursue development of its other early
stage projects as well as for the redemption of the 10% convertible
debentures, should they not be converted into shares of the Company
and for the redemption of the Amended Debentures which come due in
January 2014.
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. The company is well positioned for profitable
growth through power generation initiatives that include its 25 MW
Skookum Power Project, awarded an Electricity Purchase Agreement by
BC Hydro in 2010. ROR Power's total development potential is
approximately 390 MW.
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.