Ormat Technologies, Inc. (NYSE:ORA) today announced financial
results for the fourth quarter and full year ended December 31,
2017.
|
($ millions, except per share amounts) |
Q4 2017 |
Q4 2016 |
Change |
|
|
2017 |
|
|
2016 |
|
Change |
|
Revenues |
|
|
|
|
|
|
|
|
Electricity |
$ |
128.5 |
|
$ |
114.6 |
|
12.1 |
% |
|
$ |
468.3 |
|
$ |
436.3 |
|
7.3 |
% |
|
Product |
$ |
37.9 |
|
$ |
51.9 |
|
-27.0 |
% |
|
$ |
224.5 |
|
$ |
226.3 |
|
-0.8 |
% |
| Total
Revenues |
$ |
166.4 |
|
$ |
166.5 |
|
-0.1 |
% |
|
$ |
692.8 |
|
$ |
662.6 |
|
4.6 |
% |
| Gross
margin (%) |
|
|
|
|
|
|
|
|
Electricity1 |
|
41.6 |
% |
|
39.7 |
% |
|
|
|
41.9 |
% |
|
40.0 |
% |
|
|
Product |
|
28.7 |
% |
|
40.8 |
% |
|
|
|
32.2 |
% |
|
42.5 |
% |
|
| Gross
margin (%) |
|
38.7 |
% |
|
40.0 |
% |
|
|
|
38.7 |
% |
|
40.9 |
% |
|
| |
|
|
|
|
|
|
|
|
Operating income |
$ |
48.4 |
|
$ |
51.2 |
|
-5.5 |
% |
|
$ |
205.0 |
|
$ |
201.9 |
|
1.6 |
% |
| |
|
|
|
|
|
|
|
|
Income before income taxes and equity in losses of investees |
$ |
40.0 |
|
$ |
36.7 |
|
9.1 |
% |
|
$ |
170.7 |
|
$ |
141.1 |
|
21.0 |
% |
|
Adjusted Income before income taxes and equity in losses of
investees2 |
$ |
40.0 |
|
$ |
36.7 |
|
9.1 |
% |
|
$ |
172.6 |
|
$ |
157.1 |
|
9.9 |
% |
|
Adjusted EBITDA3 |
$ |
87.4 |
|
$ |
76.9 |
|
13.6 |
% |
|
$ |
343.8 |
|
$ |
323.8 |
|
6.2 |
% |
_______________________
1 Electricity revenues for the full year
ended December 31, 2017 includes $2.7 million of revenues and $5.4
million cost of revenues from Viridity. Electricity revenues for
the fourth quarter of 2017 includes $0.5 million of revenues and
$1.9 million cost of revenues from Viridity.
2 Adjusted Income before income taxes and
equity in losses of investees for the full year 2017 excludes $1.9
million attributable to a one-time make whole premium paid in
connection with the prepayment of OFC Senior Secured Notes and DEG
loan, recorded in the third quarter of 2017. Adjusted Income before
income taxes and equity in losses of investees for the full year
2016 excludes $16 million related to: (i) $11.0 million of one-time
settlement expenses and (ii) $5.0 million of one-time prepayment
fees, both recorded in the third quarter of 2016.
3 The way we compute Adjusted EBITDA and a reconciliation
of GAAP income before income taxes and equity in losses of
investees to EBITDA and Adjusted EBITDA is set forth below in this
release.
FULL-YEAR 2017 FINANCIAL HIGHLIGHTS:
- Total revenues of $692.8 million, up 4.6% compared to
2016:
- Electricity segment revenues of $468.3 million, up 7.3%
compared to 2016, mainly due to new power plants coming online and
improved generation in Puna;
- Electricity generation increased 1.7%, compared to 2016, from
5.4 million MWh to 5.5 million MWh;
- Product segment revenues of $224.5 million, down 0.8% compared
to 2016;
- Product segment backlog increased to $243.0 million as of
February 26, 20184;
- Gross margin was 38.7% of total revenues compared to 40.9% in
2016, due to lower margins in the product segment; Electricity
segment gross margin increased to 41.9% from 40.0%;
- Income before income taxes and equity in losses of investees
was $170.7 million, compared to $141.1 million in 2016;
- Adjusted EBITDA of $343.8 million, up 6.2% compared to $323.8
million in 2016; and
- Declared a quarterly dividend of $0.23 per share for the fourth
quarter of 2017.
“Ormat enters 2018 in its strongest competitive
position ever, with a growing portfolio of operating power plants,
a robust pipeline, and new opportunities as a result of strategic
M&A activity,” commented Isaac Angel, Chief Executive Officer.
“During 2017, we added approximately 90 MW of new capacity from our
Platanares and Tungsten Mountain power plants, and our share of the
Sarulla power plants, and reached a total portfolio of
approximately 800 MW. The new power plants will contribute to our
earnings growth and margin expansion in 2018 and beyond. Looking
ahead, our pipeline remains strong, and we are targeting an
incremental 190-200 MW from organic growth by the end of 2020.”
Mr. Angel added, “Our product segment continues
to benefit from our industry leadership, with new contracts in
Turkey, New Zealand and the Philippines. These contracts and others
increased our backlog to $243.0 million which will support our
revenues in 2018 and 2019.”
“The acquisition of the Viridity business has
positioned us to strengthen and expand our presence in the energy
storage market,” Mr. Angel noted. “With integration efforts
squarely behind us, we have advanced a new offering and are
developing three Battery Storage systems in New Jersey: a 1MW/1MWh
behind the meter energy storage system that is expected to come on
line in the first quarter of 2018 and two 20MW/20MWh
In-Front-of-the-Meter energy storage systems expected by the end of
this year.”
“In addition, we recently announced the signing
of a definitive merger agreement pursuant to which we will acquire
U.S. Geothermal Inc.,” Mr. Angel continued. “This acquisition,
which we expect to close in the second quarter of 2018, will
diversify our operations in the United States, and will create
additional opportunities to expand our development pipeline. Upon
closing of the transaction, we are confident that we can leverage
our unique core capabilities to improve the generation and
efficiency of U.S. Geothermal’s operating portfolio and increase
its profitability in 2019”.
_______________________4 The Product
segment backlog includes revenues for the period between January 1,
2018 and February 26, 2018.
GUIDANCE
Mr. Angel added, “Beginning in 2018, we
anticipate reporting three discrete line items for revenue. We will
be adding an “Other” line item, reflecting storage and demand
response revenue, in addition to the Electricity and Product
segment line items. Additionally, as we have not yet closed the
U.S. Geothermal acquisition, we did not include any of the expected
financial contribution from this proposed acquisition in our 2018
guidance.”
“We expect full-year 2018 total revenues between
$688 million and $712 million with Electricity segment revenues
between $500 million and $510 million and Product segment revenues
between $180 million and $190 million. Revenues from energy
storage and demand response activity are expected to be between $8
million and $12 million.
We expect 2018 Adjusted EBITDA5 between $355
million and $365 million for the full year. We expect annual
Adjusted EBITDA attributable to minority interest to be
approximately $24 million.”
“As we previously stated, we are focused on
increasing the portion of revenues from the Electricity segment,”
added Mr. Angel. “In 2018, we expect that the increase in
profitability of the Electricity segment will mainly come from the
full contribution of the new capacity that came on line in 2017,
including Platanares and Tunsgten Mountain as well as Sarulla (SIL
and NIL), which is accounted under the equity method and is
expected to have a notable contribution to our EBITDA in 2018 and
beyond. We expect that this increase in revenues and margin
expansion in the Electricity segment will mitigate the expected
reduction in Product segment sales, increase total EBITDA margins
and contribute to our profitable growth.”
_______________________5 The Company
is unable to provide a corresponding GAAP equivalent for its
Adjusted EBITDA guidance. In providing its full year 2018
Adjusted EBITDA guidance, the Company notes that there could be
differences between expected reported GAAP net income and estimated
GAAP net income for matters such as, but not limited to (i)
unrealized gains or losses related to derivative transactions; (ii)
unrealized foreign currency gains or losses; (iii) gains or losses
and associated benefits and costs due to disposition and
acquisition of business interests, including the tax impact of the
repatriation of proceeds from sales in foreign jurisdictions; (iv)
losses due to impairments; (v) gains, losses and expenses related
to prepayment of debt and (vi) tax benefit or expense related to
effects of the recently-enacted U.S. tax law reform.
FOURTH QUARTER 2017 FINANCIAL RESULTS
For the three months ended December 31, 2017,
total revenues were $166.4 million, 0.1% down from $166.5 million
for the three months ended December 31, 2016. Electricity segment
revenues increased 12.1% to $128.5 million for the three months
ended December 31, 2017, up from $114.6 million for the three
months ended December 31, 2016. Product segment revenues decreased
27% to $37.9 million for the three months ended December 31, 2017,
from $51.9 million for the three months ended December 31,
2016.
General and administrative expenses for the
three months ended December 31, 2017 were $9.9 million, or 5.9% of
total revenues, compared to $10.1 million, or 6.1% of total
revenues, for the three months ended December 31, 2016. The
decrease is related to $2.1 million of income from the adjustment
of the earn out due in connection with the Viridity acquisition in
the three months ended December 31, 2017.
The Company reported income before income taxes
and equity in losses of investees of $40.0 million, compared to
income before income taxes and equity in losses of investees of
$36.7 million, for the previous year. This increase was primarily
attributable to an increase in revenues and gross margin in the
Electricity segment as well as a decrease in interest expenses
partially offset by the reduction of revenues and gross margin in
the Product segment.
Adjusted EBITDA for the three months ended
December 31, 2017 was $87.4 million, compared to $76.9 million for
the three months ended December 31, 2016, an increase of 13.6%. The
reconciliation of GAAP income before income taxes and equity in
losses of investees to EBITDA and Adjusted EBITDA.
FULL-YEAR 2017 FINANCIAL RESULTS
For the year ended December 31, 2017, total
revenues were $692.8 million, up from $662.6 million for the year
ended December 31, 2016, an increase of 4.6%. Electricity segment
revenues increased 7.3% to $468.3 million for the year ended
December 31, 2017, up from $436.3 million for 2016. Product segment
revenues decreased 0.8% to $224.5 million for the year, from $226.3
million last year.
General and administrative expenses for the full
year of 2017 were $42.9 million, or 6.2% of total revenues,
compared to $46.7 million, or 7.0% of total revenues last year.
This decrease was mainly due to $11.0 million of expenses in 2016,
related to a settlement of the qui tam claim, $2.1 million of
income from the adjustment of the earn out due in connection with
the Viridity acquisition, partially offset by a $2.1 million charge
for stock-based compensation expense associated with the
acceleration of the vesting period of the stock options previously
held by our CEO and CFO in connection with the ORIX acquisition of
approximately 22% of the shares of the Company; general and
administrative expenses from our Viridity business which we
acquired on March 15, 2017; and $2.5 million of costs associated
with the ORIX transaction and other acquisitions and sales
activities in 2017.
The Company reported income before income taxes
and equity in losses of investees of $170.7 million, compared to
income before income taxes and equity in losses of investees of
$141.1 million, for the previous year. This increase was primarily
attributable to an increase in revenues and gross margin in the
Electricity segment as well as a decrease in interest expenses
partially offset by the reduction of revenues and gross margin in
the Product segment.
Adjusted EBITDA for the year ended December 31,
2017 was $343.8 million, compared to $323.8 million last year, an
increase of 6.2%. The reconciliation of GAAP income before income
taxes and equity in losses of investees to EBITDA and Adjusted
EBITDA.
DELAY IN ISSUING ANNUAL REPORT ON FORM 10-K
The Company expects to file its Annual Report on
Form 10-K for the fiscal year ended December 31, 2017 (the “2017
Form 10-K”) on or before March 16, 2018. The company will be filing
a Form 12b-25, Notification of Late Filing, with the U.S.
Securities and Exchange Commission.
The delay in filing is a result of the need to
complete additional review procedures primarily with respect to the
Company’s accounting for income taxes and financial reporting.
Although the Company’s analysis is still ongoing, as part of its
evaluation of its internal controls over financial reporting, the
Company identified a material weakness related to its risk
assessment of the accounting for income taxes. This material
weakness in internal controls resulted in income tax errors which
management has determined were not material to the previously
issued 2017 unaudited interim financial statement, but which will
be corrected for in its 2017 annual financial results.
Since the Company’s review and assessment of the
above matters is on-going as of the date of this release certain
review procedures are still to be completed prior to the filing of
its annual report on Form 10-K. As a result, while the company
believes the results contained in this release are materially
correct, certain amounts in the financial statement could be
revised when the company files its annual report on Form 10-K. The
Company is in the process of designing and implementing a
remediation plan to address the material weakness identified in its
review. The Company is working diligently to complete such
review and assessment.
DIVIDEND
On March 1, 2018, the Company’s Board of
Directors approved and authorized payment of a quarterly dividend
of $0.23 per share pursuant to the Company’s dividend policy. The
dividend will be paid on March 29, 2018 to shareholders of record
as of the close of business on March 14, 2018. In addition, the
Company expects to pay a quarterly dividend of $0.10 per share in
each of the next three quarters.
CONFERENCE CALL DETAILS
Ormat will host a conference call to discuss its
financial results and other matters discussed in this press release
on Thursday, March 1, at 10 a.m. ET. The call will be available as
a live, listen-only webcast at investor.ormat.com. During the
webcast, management will refer to slides that will be posted on the
website. The slides and accompanying webcast can be accessed
through the News & Events in the Investor Relations section of
Ormat’s website.
An archive of the webcast will be available
approximately 30 minutes after the conclusion of the live call.
Please ask to be joined into the Ormat
Technologies, Inc. call.
Participant telephone numbersParticipant dial in
(toll free): 1-877-511-6790Participant international
dial in: 1-412-902-4141Canada Toll Free:
1-855-669-9657
Conference replayUS Toll Free:
1-877-344-7529International Toll: 1-412-317-0088Replay Access
Code: 10116087
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal Company and the only
vertically integrated company engaged in geothermal and recovered
energy generation (REG), with the objective of becoming a leading
global provider of renewable energy. The Company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 73 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 530 employees in the United States and 720
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for the vast range of resource characteristics.
The company has engineered, manufactured and constructed power
plants, which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,500 MW of gross capacity.
Ormat’s current approximately 800 MW generating portfolio is spread
globally in the U.S., Guatemala, Guadeloupe, Honduras, Indonesia
and Kenya. Ormat also intends to expand its operations and provide
energy management and energy storage solutions, by leveraging its
core capabilities and global presence as well as through its
Viridity Energy Solutions, Inc. subsidiary, a Philadelphia-based
Company with nearly a decade of expertise and leadership in demand
response, energy management and storage.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may
contain statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to Ormat's plans, objectives and expectations for
future operations and are based upon its management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties. For a discussion of such
risks and uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 1, 2017.
These forward-looking statements are made only
as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
| |
|
|
|
|
|
|
|
|
|
|
|
| ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIESCondensed
Consolidated Statements of OperationsFor the Three and Twelve-Month
Periods Ended December 31, 2017 and 2016(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months
EndedDecember 31 |
|
Year Ended December
31 |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
(In thousands, except
pershare data) |
|
(In thousands, except
pershare data) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Electricity |
$ |
128,503 |
|
|
$ |
114,628 |
|
|
$ |
468,329 |
|
|
$ |
436,292 |
|
|
Product |
|
37,862 |
|
|
|
51,891 |
|
|
|
224,483 |
|
|
|
226,299 |
|
| Total
revenues |
|
166,365 |
|
|
|
166,519 |
|
|
|
692,812 |
|
|
|
662,591 |
|
| Cost of
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Electricity |
|
75,017 |
|
|
|
69,163 |
|
|
|
272,266 |
|
|
|
261,573 |
|
|
Product |
|
26,992 |
|
|
|
30,719 |
|
|
|
152,094 |
|
|
|
130,223 |
|
| Total
cost of revenues |
|
102,009 |
|
|
|
99,882 |
|
|
|
424,360 |
|
|
|
391,796 |
|
| Gross
profit |
|
64,356 |
|
|
|
66,637 |
|
|
|
268,452 |
|
|
|
270,795 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Research
and development expenses |
|
789 |
|
|
|
732 |
|
|
|
3,157 |
|
|
|
2,762 |
|
| Selling
and marketing expenses |
|
3,517 |
|
|
|
4,288 |
|
|
|
15,600 |
|
|
|
16,424 |
|
| General
and administrative expenses |
|
9,854 |
|
|
|
10,085 |
|
|
|
42,881 |
|
|
|
46,710 |
|
| Write-off
of unsuccessful exploration activities |
|
1,796 |
|
|
|
303 |
|
|
|
1,796 |
|
|
|
3,017 |
|
| Operating
income |
|
48,400 |
|
|
|
51,229 |
|
|
|
205,018 |
|
|
|
201,882 |
|
| Other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
| Interest
income |
|
127 |
|
|
|
140 |
|
|
|
988 |
|
|
|
971 |
|
| Interest
expense, net |
|
(12,987 |
) |
|
|
(15,828 |
) |
|
|
(54,142 |
) |
|
|
(67,389 |
) |
|
Derivatives and foreign currency transaction gains (losses) |
|
614 |
|
|
|
(2,942 |
) |
|
|
2,654 |
|
|
|
(5,534 |
) |
| Income
attributable to sale of tax benefits |
|
3,859 |
|
|
|
4,123 |
|
|
|
17,878 |
|
|
|
16,503 |
|
| Other
non-operating expense, net |
|
12 |
|
|
|
(39 |
) |
|
|
(1,666 |
) |
|
|
(5,345 |
) |
| Income
before income taxes and equity in losses of investees |
|
40,025 |
|
|
|
36,683 |
|
|
|
170,730 |
|
|
|
141,088 |
|
| |
|
|
|
|
|
|
| ORMAT
TECHNOLOGIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance
SheetAs of December 31, 2017, and 2016(Unaudited) |
| |
|
|
|
|
|
|
| |
|
December
31, |
|
December
31, |
| |
|
2017 |
|
2016 |
| |
|
|
|
|
|
|
| |
|
|
(In
thousands) |
| ASSETS |
| Current assets: |
|
|
|
|
|
|
| Cash and
cash equivalents |
|
$ |
47,818 |
|
|
$ |
230,214 |
|
|
Restricted cash, cash equivalents and marketable securities |
|
|
48,825 |
|
|
|
34,262 |
|
|
Receivables: |
|
|
|
|
|
|
|
Trade |
|
|
110,410 |
|
|
|
80,807 |
|
|
Other |
|
|
13,828 |
|
|
|
17,482 |
|
|
Inventories |
|
|
19,551 |
|
|
|
12,000 |
|
| Costs and
estimated earnings in excess of billings on uncompleted
contracts |
|
|
40,945 |
|
|
|
52,198 |
|
| Prepaid
expenses and other |
|
|
40,269 |
|
|
|
45,867 |
|
| Total
current assets |
|
|
321,646 |
|
|
|
472,830 |
|
|
Investment in an unconsolidated company |
|
|
34,084 |
|
|
|
— |
|
| Deposits
and other |
|
|
21,599 |
|
|
|
18,553 |
|
| Deferred
charges |
|
|
49,834 |
|
|
|
43,773 |
|
|
Property, plant and equipment, net |
|
|
1,734,691 |
|
|
|
1,556,378 |
|
|
Construction-in-process |
|
|
293,542 |
|
|
|
306,709 |
|
| Deferred
financing and lease costs, net |
|
|
4,674 |
|
|
|
3,923 |
|
|
Intangible assets, net |
|
|
85,420 |
|
|
|
52,753 |
|
|
Goodwill |
|
|
21,037 |
|
|
|
6,650 |
|
| Total
assets |
|
$ |
2,566,527 |
|
|
$ |
2,461,569 |
|
| LIABILITIES AND
EQUITY |
| Current
liabilities: |
|
|
|
|
|
|
| Accounts
payable and accrued expenses |
|
$ |
153,796 |
|
|
$ |
91,650 |
|
|
Short-term revolving credit lines with banks (full recourse) |
|
|
51,500 |
|
|
|
— |
|
| Billings
in excess of costs and estimated earnings on uncompleted
contracts |
|
|
20,241 |
|
|
|
31,630 |
|
| Current
portion of long-term debt: |
|
|
|
|
|
|
| Limited
and non-recourse: |
|
|
|
|
|
|
| Senior
secured notes |
|
|
33,226 |
|
|
|
32,234 |
|
| Other
loans |
|
|
21,495 |
|
|
|
21,495 |
|
| Full
recourse |
|
|
3,087 |
|
|
|
12,242 |
|
| Total
current liabilities |
|
|
283,345 |
|
|
|
189,251 |
|
| Long-term debt, net of
current portion: |
|
|
|
|
|
|
| Limited
and non-recourse: |
|
|
|
|
|
|
| Senior
secured notes |
|
|
311,668 |
|
|
|
350,388 |
|
| Other
loans |
|
|
242,385 |
|
|
|
261,845 |
|
| Full
recourse: |
|
|
|
|
|
|
| Senior
unsecured bonds |
|
|
203,752 |
|
|
|
203,577 |
|
| Other
loans |
|
|
46,489 |
|
|
|
57,063 |
|
|
Accumulated losses of unconsolidated company in excess of
investment |
|
|
— |
|
|
|
11,081 |
|
| Liability associated
with sale of tax benefits |
|
|
44,634 |
|
|
|
54,662 |
|
| Deferred lease
income |
|
|
51,520 |
|
|
|
54,561 |
|
| Deferred income
taxes |
|
|
17,612 |
|
|
|
35,382 |
|
| Liability for
unrecognized tax benefits |
|
|
8,890 |
|
|
|
5,738 |
|
| Liabilities for
severance pay |
|
|
21,141 |
|
|
|
18,600 |
|
| Asset retirement
obligation |
|
|
27,110 |
|
|
|
23,348 |
|
| Other long-term
liabilities |
|
|
18,853 |
|
|
|
21,294 |
|
| Total
liabilities |
|
|
1,277,399 |
|
|
|
1,286,790 |
|
| |
|
|
|
|
|
|
| Redeemable
non-controlling interest |
|
|
6,416 |
|
|
|
4,772 |
|
| |
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
| The
Company's stockholders' equity: |
|
|
|
|
|
|
| Common
stock |
|
|
51 |
|
|
|
50 |
|
|
Additional paid-in capital |
|
|
888,778 |
|
|
|
869,463 |
|
| Retained
earnings (accumulated deficit) |
|
|
313,875 |
|
|
|
216,644 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(4,314 |
) |
|
|
(7,732 |
) |
| |
|
|
1,198,390 |
|
|
|
1,078,425 |
|
|
Noncontrolling interest |
|
|
84,322 |
|
|
|
91,582 |
|
| Total
equity |
|
|
1,282,712 |
|
|
|
1,170,007 |
|
| Total
liabilities and equity |
|
$ |
2,566,527 |
|
|
$ |
2,461,569 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIESReconciliation of
EBITDA, Adjusted EBITDA For the Three and Twelve-Month Periods
Ended December 31, 2017 and 2016(Unaudited)
Due to the matters mentioned above, for the purposes of this
release, we have calculated EBITDA as income before income taxes
and equity in losses of investees before interest, depreciation and
amortization. We calculated Adjusted EBITDA as income before income
taxes and equity in losses of investees before interest,
depreciation and amortization, adjusted for (i) termination fees,
(ii) impairment of long-lived assets, (iii) write-off of
unsuccessful exploration activities, (iv) any mark-to-market gains
or losses from accounting for derivatives, (v) merger and
acquisition transaction costs, (vi) stock-based compensation, (vii)
gain from extinguishment of liability, and (viii) gain on sale of
subsidiary and property, plant and equipment. EBITDA and Adjusted
EBITDA are not a measurement of financial performance or liquidity
under accounting principles generally accepted in the United States
of America and should not be considered as an alternative to cash
flow from operating activities or as a measure of liquidity or an
alternative to net earnings as indicators of our operating
performance or any other measures of performance derived in
accordance with accounting principles generally accepted in the
United States of America. EBITDA and Adjusted EBITDA are presented
because we believe they are frequently used by securities analysts,
investors and other interested parties in the evaluation of a
Company’s ability to service and/or incur debt. However, other
companies in our industry may calculate EBITDA and Adjusted EBITDA
differently than we do.
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31 |
|
Year Ended December 31 |
| |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(in thousands) |
|
(in thousands) |
| Income before income
taxes and equity in losses of investees |
|
$ |
40,025 |
|
|
$ |
36,683 |
|
|
$ |
170,730 |
|
|
$ |
141,088 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net
(including amortization of deferred financing costs) |
|
|
12,860 |
|
|
|
15,688 |
|
|
|
53,154 |
|
|
|
66,418 |
|
| Equity in losses of
investees, net |
|
|
(267 |
) |
|
|
(3,001 |
) |
|
|
(1,957 |
) |
|
|
(7,735 |
) |
| Adjustment to
investment in unconsolidated company: |
|
|
|
|
|
|
|
|
|
|
|
|
| Our
proportionate share in interest, tax and depreciation and
amortization |
|
|
(265 |
) |
|
|
|
|
|
(265 |
) |
|
|
|
| Depreciation and
amortization |
|
|
31,652 |
|
|
|
25,868 |
|
|
|
108,693 |
|
|
|
99,141 |
|
| EBITDA |
|
$ |
84,005 |
|
|
$ |
75,238 |
|
|
$ |
330,355 |
|
|
$ |
298,912 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Mark-to-market on
derivatives instruments |
|
|
(700 |
) |
|
|
(478 |
) |
|
|
(1,500 |
) |
|
|
319 |
|
| Stock-based
compensation |
|
|
1,556 |
|
|
|
1,774 |
|
|
|
8,760 |
|
|
|
5,157 |
|
| Gain on sale of
subsidiary and property, plant and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(686 |
) |
| Loss from
extinguishment of liability |
|
|
— |
|
|
|
— |
|
|
|
1,950 |
|
|
|
5,780 |
|
| Settlement
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,000 |
|
| Merger and acquisition
transaction cost |
|
|
760 |
|
|
|
100 |
|
|
|
2,460 |
|
|
|
335 |
|
| Write-off of
unsuccessful exploration activities |
|
|
1,796 |
|
|
|
303 |
|
|
|
1,796 |
|
|
|
3,017 |
|
| Adjusted EBITDA |
|
$ |
87,417 |
|
|
$ |
76,937 |
|
|
$ |
343,821 |
|
|
$ |
323,834 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Ormat
Technologies Contact: Smadar Lavi VP Corporate Finance and Head of
Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com |
Investor
Relations Agency Contact: Rob Fink Hayden - IR 646-415-8972
rob@haydenir.com |
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