Ormat Announces That It Will Restate Its Second, Third and Fourth Quarter and Full-Year 2017 Financial Statements; Announces ...
May 16 2018 - 1:36AM
Ormat Technologies Inc. (NYSE:ORA) announced today that it will
restate its second, third and fourth quarter 2017 financial
statements and its full-year 2017 financial statements. This
decision was approved by, and with the continuing oversight of, the
Company’s Board of Directors upon the recommendation of its Audit
Committee.
As a result of the restatement, investors should no longer rely
upon the Company's previously issued financial statements for the
periods set forth above, earnings releases for these periods, and
other communications relating to these financial statements. In
addition, the Company is further delaying the filing of the
quarterly report on Form 10-Q for its first quarter of 2018 with
the Securities and Exchange Commission.
The decision to restate these financial statements is based on
the Company’s conclusion that there were errors in the income tax
provision primarily relating to the Company’s valuation allowance
based on the Company’s ability to utilize foreign tax credits in
the U.S. prior to their expiration. Additionally, the Company
netted certain deferred income tax assets and deferred income tax
liabilities across different tax jurisdictions that are not
permitted to be netted pursuant to United States generally accepted
accounting principles. The restatement is expected to impact the
“income tax (provision) benefit” line item in the Company’s
statements of operations, with associated impacts to net income and
earnings per share and the “deferred income taxes” line items on
its balance sheet. In connection with the restatement of the
full-year 2017 financial statements, the Company will also make
revisions to the same line items in certain quarterly financial
statements for 2016 and its full-year 2016 and 2015 financial
statements.
Although the Company cannot at this time estimate when it will
complete the restatement and refile its restated financial
statements and its Form 10-Q for the first quarter of 2018, it is
diligently pursuing completion of the restatement and intends to
file the Form 10-Q as soon as reasonably practicable. Because the
Company has not yet fully completed its review, the impact of the
restatement described above is preliminary and subject to
change.
As previously reported, the Company identified a material
weakness in its internal control over financial reporting related
to accounting for income taxes. Management, with the oversight of
the Audit Committee and the Board of Directors, continues to
dedicate significant resources and efforts to improve the Company’s
control environment and take steps to address the material
weakness identified. These efforts are intended both to
address the identified material weakness and to enhance the
Company’s overall financial control environment.
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 77 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 770
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 2,600 MW of gross capacity.
Ormat’s current 851 MW generating portfolio is spread globally in
the United States, Guatemala, Guadeloupe, Honduras, Indonesia and
Kenya. In March 2017, Ormat expanded its operations to provide
energy storage and energy management 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 energy
storage, demand response and energy management.
Ormat’s Safe Harbor Statement
Information provided in this press release contains
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. Examples of such forward-looking statements include,
but are not limited to, statements of our expectations regarding
the Company’s intended actions, timing and assessment related to
the restatement of the Company’s financial statements for the
restated periods described above.
These forward-looking statements are based on our
current beliefs, assumptions and expectations concerning future
events, which, in turn, are based on information currently
available to the Company. Such forward-looking statements
include the expected impact of the restatement for each of the
restated periods. Although we believe that the expectations
underlying any of these forward-looking statements are reasonable,
these expectations may prove to be incorrect and all of these
statements are subject to risks and uncertainties. A variety of
factors could cause actual events or results to differ materially
from those expressed or contemplated by the forward-looking
statements including, without limitation, additional information
that may become known prior to the expected filing with the
Securities and Exchange Commission of the restated financial
statements for the restated periods or that subsequent events may
occur that require the Company to make additional adjustments to
such restated financial statements.
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 Contact: Smadar LaviVP Corporate Finance and Head of
Investor Relations775-356-9029 (ext. 65726)slavi@ormat.com |
Investor
Relations Agency Contact: Rob FinkHayden -
IR646-415-8972rob@haydenir.com |
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