Ormat Technologies, Inc. (the “Company”, “we”, “Ormat” or “us”)
(NYSE: ORA) today announced financial results for the fourth
quarter and full year ended December 31, 2019 and a transition of
its senior management.
MANAGEMENT TRANSITIONS
Mr. Angel has decided to retire from his
position as Chief Executive Officer, effective July 1, 2020, after
six years of successful service to the Company, its employees and
its shareholders. It is intended that Mr. Angel will become a
member of Ormat’s Board of Directors before his retirement as Chief
Executive Officer and will continue to be employed by the Company
through December 31, 2020 in order to assist with the management
transition.
Ormat’s Board of Directors has appointed Mr.
Blachar, the Company’s President and Chief Financial Officer, to
succeed Mr. Angel. Mr. Blachar will assume the role of Chief
Executive Officer on July 1, 2020 upon Mr. Angel’s retirement. Mr.
Blachar has served as Chief Financial Officer of Ormat since 2013
and was instrumental in the strategic development and growth of the
company during that period. Previously, he held senior managerial
positions with Shikun & Binui Ltd., A.D.O. Group Ltd., Teva
Pharmaceutical Industries Ltd. and Amdocs Limited.
Mr. Blachar will be succeeded in his role as
Chief Financial Officer by Assaf Ginzburg, effective May 10, 2020,
at which point Mr. Blachar will serve as President of the Company
until assuming his role as Chief Executive Officer on July 1, 2020.
Mr. Ginzburg currently serves as Executive Vice President and Chief
Financial Officer of Delek US Holdings, Inc. (NYSE: DK) and Delek
Logistics Partners, LP (NYSE: DKL), and has over 15 years of
experience in the energy industry. In his financial positions, Mr.
Ginzburg supervised teams of senior financial professionals and has
significant experience in all aspects of corporate finance,
financial planning, tax, accounting and investor relations.
“Ormat is well positioned with broad and
committed senior leadership, enabling a smooth and seamless
transition,” commented Mr. Angel. “Over the last seven years, Doron
has proved himself to be a talented and outstanding executive with
demonstrated ability as a business leader. I am confident that
Doron will lead Ormat to continued success. Assaf Ginzburg is a
proven financial executive with significant experience and Ormat
will benefit from his expertise as we continue to grow. I look
forward to continuing to be part of the Ormat family and, in the
future, to contribute to Ormat’s success as a member of the Board
of Directors.”
The Board of Directors of Ormat issued the
following statement: “Isaac has led Ormat to become not only a
geothermal industry leader, but also in the development of
initiatives in the broader renewable energy sector. Isaac
established a strong and responsible corporate culture, built a
strong management team and created lasting value for employees,
customers, and shareholders. We wish him the best in his
well-deserved retirement from day-to-day leadership of Ormat and
are grateful that he has agreed to continue to serve the Company in
the future as a member of the Board of Directors. The Board is
confident that the Company will reach new heights under Doron’s
leadership. Doron has been a strategic executive with a deep
understanding of our industry and how to grow our business
profitably. He has proven invaluable over the past seven years.
Finally, we welcome Assaf Ginzburg to the Ormat team.”
FINANCIAL RESULTS
($ millions, except per share amounts) |
Q4 2019 |
Q4 2018 |
Change(%) |
FY 2019 |
FY 2018 |
Change(%) |
Revenues |
|
|
|
|
|
|
Electricity |
144.4 |
|
138.3 |
|
4.4 |
% |
540.3 |
|
509.9 |
|
6.0 |
% |
Product |
43.8 |
|
49.7 |
|
(11.9 |
%) |
191.0 |
|
201.7 |
|
(5.3 |
%) |
Energy Storage & Management Services |
4.3 |
|
2.4 |
|
75.5 |
% |
14.7 |
|
7.6 |
|
92.3 |
% |
Total revenues |
192.4 |
|
190.5 |
|
1.0 |
% |
746.0 |
|
719.3 |
|
3.7 |
% |
Gross profit |
74.5 |
|
90.8 |
|
(18.0 |
%) |
269.3 |
|
270.4 |
|
(0.4 |
%) |
Gross margin (%) |
|
|
|
|
|
|
Electricity |
43.6 |
% |
54.0 |
% |
|
42.1 |
% |
41.5 |
% |
|
Product |
28.2 |
% |
32.2 |
% |
|
23.6 |
% |
30.3 |
% |
|
Energy Storage & Management Services |
(19.0 |
%) |
7.9 |
% |
|
(21.8 |
%) |
(29.2 |
%) |
|
Gross margin (%) |
38.7 |
% |
47.7 |
% |
|
36.1 |
% |
37.6 |
% |
|
|
|
|
|
|
|
|
Operating income |
54.5 |
|
68.0 |
|
(19.9 |
%) |
193.8 |
|
185.1 |
|
4.7 |
% |
Net income attributable to the Company’s stockholders |
12.6 |
|
18.2 |
|
(30.8 |
%) |
88.1 |
|
98.0 |
|
(10.1 |
%) |
Diluted EPS |
0.24 |
|
0.36 |
|
(33.3 |
%) |
1.72 |
|
1.92 |
|
(10.4 |
%) |
|
|
|
|
|
|
|
Adjusted net income attributable to the Company’s
stockholders1 |
12.6 |
|
21.3 |
|
(40.8 |
%) |
74.8 |
|
106.1 |
|
(29.5 |
%) |
Diluted adjusted EPS1 |
0.24 |
|
0.42 |
|
(42.9 |
%) |
1.46 |
|
2.08 |
|
(29.8 |
%) |
|
|
|
|
|
|
|
Adjusted EBITDA1 |
102.2 |
|
113.2 |
|
(9.7 |
%) |
384.3 |
|
368.0 |
|
4.4 |
% |
Selected numbers without the impact of Puna |
|
|
|
|
|
|
Adjusted Electricity gross margin without the impact of
Puna2 |
46.9 |
% |
48.6 |
% |
|
44.1 |
% |
41.9 |
% |
|
Adjusted total gross margin without the impact of Puna2 |
41.2 |
% |
43.7 |
% |
|
37.5 |
% |
37.8 |
% |
|
Diluted adjusted EPS without the impact of Puna1 |
0.31 |
|
0.33 |
|
(6.1 |
%) |
1.60 |
|
1.95 |
|
(17.9 |
%) |
Adjusted EBITDA without the impact of Puna1 |
104.7 |
|
103.6 |
|
1.1 |
% |
385.5 |
|
354.7 |
|
8.7 |
% |
“This was a positive ending to a strong year for
Ormat,” commented Mr. Angel, Chief Executive Officer. “With the
encouraging regulatory environment, robust growth plan and
increasing market demand for base-load renewable energy, Ormat is
well-positioned for continued success in 2020 and beyond. Our
electricity segment delivered 6.0% full-year growth despite no
contribution by Puna for all of 2019 and we signed three important
PPAs in Hawaii and California, giving us great visibility into the
coming year. We now expect Puna to re-start operations in the
second half of 2020 due to a delay in a building permit that was
received just last week. In the product segment, we are close
to signing a significant contract that, if signed, would replenish
our backlog. Our storage and management services segment is
growing, and as customers continue to seek innovative ways to
improve efficiency of renewable energy systems through storage, we
believe that this portion of our business will become increasingly
relevant.”
Mr. Angel continued, “Confidence in our business
is growing with the recent extension of federal tax incentives,
which supports our accelerated growth plans in the U.S. Today, we
announce our 2022 growth targets, which projects the addition of
180MW to 200MW of new megawatts of generating capacity from
geothermal and solar by the end of 2022 and are in an advance stage
of securing a new operating and development pipeline of energy
storage projects, demonstrating progress towards our stated goal to
evolve from a geothermal leader to a leader in renewable energy.
This evolution ties nicely with our energy storage efforts,
positioning Ormat as an industry leader with a comprehensive range
of products, solutions, properties and expertise to deliver clean,
renewable energy in a variety of ways.”
FINANCIAL HIGHLIGHTS FOR THE FULL YEAR 2019
- Total revenues of $746.0 million, up 3.7% compared to
2018;
- Electricity segment revenues of $540.3 million, up 6.0%
compared to 2018;
- Electricity segment gross margin was 42.1% compared to 41.5%
for 2018; gross margin without the impact of Puna was 44.1% in 2019
compared to 41.9% in 2018;
- Product segment revenues of $191.0 million, down 5.3% compared
to 2018;
- Product segment backlog was approximately $141.9 million as of
February 25, 2020;
- Energy Storage & Management Services segment revenues of
$14.7 million compared to $7.6 million in 2018;
- Total gross margin was 36.1% compared to 37.6% in 2018;
adjusted total gross margin without the impact of Puna was 37.5% in
2019 compared to 37.8% in 2018;
- Net income was $93.5 million compared to $110.1 million in
2018;
- Net income attributable to the Company's stockholders was $88.1
million, or $1.72 per diluted share, compared to $98.0 million, or
$1.92 per diluted share in 2018;
- Adjusted net income attributable to the Company's stockholders3
for 2019 of $74.8 million, or $1.46 per diluted share. Adjusted net
income attributable to the company's stockholders and diluted EPS
for 2018 of $106.1 million or, $2.08 per diluted share;
- Adjusted EBITDA3 increased 4.4% to $384.3 million, up from
$368.0 million in 2018; without the impact of Puna adjusted EBITDA
in 2019 was $385.6 million; and
- The Company declared a quarterly dividend of $0.11 per share
for the fourth quarter of 2019.
RECENT DEVELOPMENTS
- Ormat signed two similar 10-year PPAs with Silicon Valley Clean
Energy (SVCE) and Monterey Bay Community Power (MBCP), under which
SVCE and MBCP will each purchase 7MW (for a total of 14MW) of power
generated by the expected 30MW Casa Diablo-IV (CD4) geothermal
project located in Mammoth Lakes, California.
- Ormat’s subsidiary, Puna Geothermal Venture (PGV), and Hawaiian
Electric’s Hawaii Electric Light amended and restated a PPA for
dispatchable geothermal power sold from Ormat’s Puna complex,
located on the Big Island of Hawaii through 2052. The PPA increased
contracted capacity under the agreement and provided for new fixed
prices, regardless of changes to fossil fuel pricing.
- The United States federal government retroactively revived and
extended the full Production Tax Credit (PTC) for geothermal
facilities through 2020. The PTC provides a credit for each
kilowatt-hour of energy produced by the taxpayer from qualified
renewable energy facilities.
- Ormat announced the commercial operation of the Hinesburg
Battery Energy Storage System (Hinesburg BESS) under an agreement
with Vermont Electric Cooperative (VEC).
- Ormat announced the appointment of Mr. Blachar as the Company’s
President. Mr. Blachar is assisting the Chief Executive Officer,
Isaac Angel, with the Company’s strategic direction and operational
management until he assumes Mr. Angel’s position in July 1,
2020.
2020 GUIDANCE
Mr. Angel added, “We expect full-year 2020 total
revenues of between $720 million and $740 million with electricity
segment revenues between $560 million and $570 million. We expect
product segment revenues of between $140 million and $150 million.
Revenues from energy storage and demand response activity are
expected to be between $15 million and $20 million. We expect 2020
Adjusted EBITDA of between $405 million and $415 million for the
full year. We expect annual Adjusted EBITDA attributable to
minority interest to be approximately $26 million.”
The Company provides a reconciliation of
Adjusted EBITDA, a non-GAAP financial measure for the three months
and year ended December 31, 2019. However, the Company is unable to
provide a reconciliation for its Adjusted EBITDA guidance range due
to high variability and complexity with respect to estimating
forward looking amounts for impairments and disposition and
acquisition of business interests, income taxes expense related to
still evolving effects of the tax law reform in the United States
and other non-cash expenses and adjusting items that are excluded
from the calculation of Adjusted EBITDA.
FOURTH QUARTER 2019 FINANCIAL RESULTS (COMPARING
THE QUARTER ENDED DECEMBER 31, 2019 TO THE QUARTER ENDED DECEMBER
31, 2018)
Total revenues for the quarter were $192.4
million, up 1.0% compared to the same quarter last year.
Electricity segment revenues increased 4.4% to $144.4 million, up
from $138.3 million last year. The increase was mainly attributable
to the commencement of commercial operation of the third phase of
the McGinness Hills Complex in Nevada, which began in December
2018. Product segment revenues decreased 11.9% to $43.8 million,
down from $49.7 million in the same quarter last year due to timing
of revenue recognition of the projects included in our backlog.
Energy Storage and Management Services segment revenues were $4.3
million compared to $2.4 million in the same quarter last year. The
increase was mainly driven by the start of operation of two storage
energy facilities in the PJM market.
General and administrative expenses were $14.0
million, or 7.3% of total revenues, compared to $4.4 million, or
2.3% of total revenues. The increase was primarily attributable to
$10.3 million of income resulting from the release of an earn-out
provision related to the acquisition of our Viridity business that
offset expenses in the year ended December 31, 2018. General and
administrative expenses for the three months ended December 31,
2018 constituted 7.7% of total revenues for such period excluding
the earn-out adjustment.
Net income attributable to the Company’s
shareholders was $12.6 million, or $0.24 per diluted share,
compared to $18.2 million, or $0.36 per diluted share.
Adjusted EBITDA4 was $102.2 million in the
fourth quarter of 2019 and $104.7 million excluding the impact of
Puna that was shutdown following the volcanic eruption in 2018,
compared to $113.2 million in the fourth quarter of 2018 and $103.6
million excluding the impact of Puna. The increase in Adjusted
EBITDA without the impact of Puna is mainly related to the
commencement of commercial operation of the third phase of the
McGinness Hills Complex. A reconciliation of GAAP net income to
EBITDA and Adjusted EBITDA is set forth below in this release.
FULL YEAR 2019 FINANCIAL HIGHLIGHTS
For the year ended December 31, 2019, total
revenues were $746.0 million, up from $719.3 million for the year
ended December 31, 2018, an increase of 3.7%. Electricity segment
revenues increased 6.0% to $540.3 million for the year ended
December 31, 2019, up from $509.9 million for 2018. Product segment
revenues decreased 5.3% to $191.0 million for the year, down from
$201.7 million last year. Energy Storage and Management Services
segment revenues were $14.7 million for the year ended December 31,
2019 compared to $7.6 million in 2018.
General and administrative expenses for the full
year of 2019 were $55.8 million, or 7.5% of total revenues,
compared to $47.8 million, or 6.6% of total revenues last year.
This increase was mainly due to a $10.3 million adjustment in
respect to an earn out related to the acquisition of the Viridity
business in 2018, which was partially offset by costs related to
the identification of a material weakness related to taxes in the
fourth quarter of 2017 and the restatement of 2017 financial
statements and costs related to the acquisition of USG.
Net income for the year ended December 31, 2019
was $93.5 million compared to $110.1 million for the prior year
period.
Net income attributable to the company’s
stockholders was $88.1 million, or $1.72 per diluted share,
compared to $98.0 million, or $1.92 per diluted share, for the same
period a year ago.
Adjusted Net income attributable to the
Company's stockholders4 for 2019 of $74.8 million, or $1.46 per
diluted share. Adjusted net income attributable to the company's
stockholders and diluted EPS for 2018 of $106.1 million or, $2.08
per diluted share.
Adjusted EBITDA4 for the year ended December 31,
2019 was $384.3 million and $385.5 excluding the impact of Puna
that was shutdown following the volcanic eruption in 2018, compared
to $368.0 million for 2018 and $354.7 million, respectively, an
increase of 8.7% in the Adjusted EBITDA without the impact of Puna.
The reconciliation of GAAP Net income to EBITDA and Adjusted EBITDA
is set forth below in this release.
DIVIDEND
On February 25, 2020, the Company’s Board of Directors declared,
approved and authorized payment of a quarterly dividend of $0.11
per share pursuant to the Company’s dividend policy. The dividend
will be paid on March 26, 2020 to shareholders of record as of the
close of business on March 12, 2020. In addition, the Company
expects to pay a quarterly dividend of $0.11 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 Wednesday, February 26, 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 60 minutes after the conclusion of the live call.
Investors may access the call by dialing:
Participant dial in (toll free): |
1-877-511-6790 |
Participant
international dial-in: |
1-412-902-4141 |
|
|
Conference
replay |
|
|
|
US Toll
Free: |
1-877-344-7529 |
International Toll: |
1-412-317-0088 |
Replay
Access Code: |
10138458 |
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, solar 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 584 employees in the United
States and 762 overseas. Ormat’s flexible, modular solutions for
geothermal power and REG are ideal for 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 approximately 3,000
MW of gross capacity. Ormat’s current 914 MW generating portfolio
is spread globally in the U.S., Kenya, Guatemala, Indonesia,
Honduras, and Guadeloupe. 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.
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’s Form 10-K
filed with the Securities and Exchange Commission (“SEC”) on March
1, 2019 and from time to time, in Ormat’s quarterly reports on Form
10-Q that are filed with the SEC.
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
Statement of OperationsFor the Three- and 12-Month Periods Ended
December 31, 2019 and 2018
|
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
|
(In thousands, except per share data) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Electricity |
$ |
144,368 |
|
|
$ |
138,320 |
|
|
$ |
540,333 |
|
|
$ |
509,879 |
|
Product |
|
43,814 |
|
|
|
49,717 |
|
|
|
191,009 |
|
|
|
201,743 |
|
Other |
|
4,260 |
|
|
|
2,428 |
|
|
|
14,702 |
|
|
|
7,645 |
|
Total revenues |
|
192,442 |
|
|
|
190,465 |
|
|
|
746,044 |
|
|
|
719,267 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
Electricity |
|
81,392 |
|
|
|
63,692 |
|
|
|
312,835 |
|
|
|
298,255 |
|
Product |
|
31,479 |
|
|
|
33,729 |
|
|
|
145,974 |
|
|
|
140,697 |
|
Other |
|
5,069 |
|
|
|
2,235 |
|
|
|
17,912 |
|
|
|
9,880 |
|
Total cost of revenues |
|
117,940 |
|
|
|
99,656 |
|
|
|
476,721 |
|
|
|
448,832 |
|
Gross profit |
|
74,502 |
|
|
|
90,809 |
|
|
|
269,323 |
|
|
|
270,435 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
1,874 |
|
|
|
1,118 |
|
|
|
4,647 |
|
|
|
4,183 |
|
Selling and marketing expenses |
|
4,124 |
|
|
|
3,813 |
|
|
|
15,047 |
|
|
|
19,802 |
|
General and administrative expenses |
|
14,032 |
|
|
|
4,432 |
|
|
|
55,833 |
|
|
|
47,750 |
|
Impairment charge |
|
— |
|
|
|
13,464 |
|
|
|
— |
|
|
|
13,464 |
|
Write-off of unsuccessful exploration activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
126 |
|
Operating income |
|
54,472 |
|
|
|
67,982 |
|
|
|
193,796 |
|
|
|
185,110 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
320 |
|
|
|
458 |
|
|
|
1,515 |
|
|
|
974 |
|
Interest expense, net |
|
(17,568 |
) |
|
|
(22,034 |
) |
|
|
(80,384 |
) |
|
|
(70,924 |
) |
Derivatives and foreign currency transaction gains
(losses) |
|
(72 |
) |
|
|
(2,250 |
) |
|
|
624 |
|
|
|
(4,761 |
) |
Income attributable to sale of tax benefits |
|
4,415 |
|
|
|
4,020 |
|
|
|
20,872 |
|
|
|
19,003 |
|
Other non-operating expense, net |
|
(482 |
) |
|
|
117 |
|
|
|
880 |
|
|
|
7,779 |
|
Income before income taxes and equity in |
|
|
|
|
|
|
|
|
|
|
|
losses of investees |
|
41,085 |
|
|
|
48,293 |
|
|
|
137,303 |
|
|
|
137,181 |
|
Income tax (provision)
benefit |
|
(25,477 |
) |
|
|
(31,386 |
) |
|
|
(45,613 |
) |
|
|
(34,733 |
) |
Equity in losses of investees,
net |
|
(1,481 |
) |
|
|
6,182 |
|
|
|
1,853 |
|
|
|
7,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
14,127 |
|
|
|
23,089 |
|
|
|
93,543 |
|
|
|
110,111 |
|
Net income attributable to noncontrolling interest |
|
(1,521 |
) |
|
|
(4,869 |
) |
|
|
(5,448 |
) |
|
|
(12,145 |
) |
Net income attributable to the Company's stockholders |
$ |
12,606 |
|
|
$ |
18,220 |
|
|
$ |
88,095 |
|
|
$ |
97,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to the Company's stockholders - Basic and
diluted: |
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
0.25 |
|
|
$ |
0.36 |
|
|
$ |
1.73 |
|
|
$ |
1.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
0.24 |
|
|
$ |
0.36 |
|
|
$ |
1.72 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computation of earnings per share |
|
|
|
|
|
|
|
|
|
|
|
attributable to the
Company's stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
51,017 |
|
|
|
50,691 |
|
|
|
50,867 |
|
|
|
50,643 |
|
Diluted |
|
51,511 |
|
|
|
50,936 |
|
|
|
51,227 |
|
|
|
50,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETFor the Periods Ended
December 31, 2019 and December 31, 2018
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
(In thousands) |
ASSETS |
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
71,173 |
|
|
$ |
98,802 |
|
Restricted cash and cash equivalents |
|
81,937 |
|
|
|
78,693 |
|
Receivables: |
|
|
|
|
|
Trade |
|
154,525 |
|
|
|
137,581 |
|
Other |
|
22,048 |
|
|
|
19,393 |
|
Inventories |
|
34,949 |
|
|
|
45,024 |
|
Costs and estimated earnings in excess of billings on
uncompleted contracts |
|
38,365 |
|
|
|
42,130 |
|
Prepaid expenses and other |
|
12,667 |
|
|
|
51,441 |
|
Total current assets |
|
415,664 |
|
|
|
473,064 |
|
Investment in an
unconsolidated company |
|
81,140 |
|
|
|
71,983 |
|
Deposits and other |
|
37,276 |
|
|
|
18,209 |
|
Deferred income taxes |
|
129,510 |
|
|
|
113,760 |
|
Property, plant and equipment,
net |
|
1,971,415 |
|
|
|
1,959,578 |
|
Construction-in-process |
|
376,555 |
|
|
|
261,690 |
|
Operating lease right of
use |
|
17,405 |
|
|
|
— |
|
Financing lease right of
use |
|
14,161 |
|
|
|
— |
|
Deferred financing and lease
costs, net |
|
1,008 |
|
|
|
3,242 |
|
Intangible assets, net |
|
186,220 |
|
|
|
199,874 |
|
Goodwill |
|
20,140 |
|
|
|
19,950 |
|
Total assets |
$ |
3,250,494 |
|
|
$ |
3,121,350 |
|
LIABILITIES AND EQUITY |
Current
liabilities: |
|
|
|
|
|
Accounts payable and accrued expenses |
$ |
141,857 |
|
|
$ |
116,362 |
|
Short-term revolving credit lines with banks (full
recourse) |
|
40,550 |
|
|
|
159,000 |
|
Commercial paper |
|
50,000 |
|
|
|
— |
|
Billings in excess of costs and estimated earnings on
uncompleted contracts |
|
2,755 |
|
|
|
18,402 |
|
Current portion of long-term debt: |
|
|
|
|
|
Limited and non-recourse: |
|
|
|
|
|
Senior secured notes |
|
24,473 |
|
|
|
33,493 |
|
Other loans |
|
34,458 |
|
|
|
29,687 |
|
Full recourse |
|
76,572 |
|
|
|
5,000 |
|
Operating lease
liabilities |
|
2,743 |
|
|
|
— |
|
Finance lease liabilities |
|
3,068 |
|
|
|
— |
|
Total current liabilities |
|
376,476 |
|
|
|
361,944 |
|
Long-term debt, net of current
portion: |
|
|
|
|
|
Limited and non-recourse: |
|
|
|
|
|
Senior secured notes |
|
339,336 |
|
|
|
375,337 |
|
Other loans |
|
317,395 |
|
|
|
320,242 |
|
Full recourse: |
|
|
|
|
|
Senior unsecured bonds |
|
286,453 |
|
|
|
303,575 |
|
Other loans |
|
68,747 |
|
|
|
41,579 |
|
Operating lease
liabilities |
|
14,008 |
|
|
|
— |
|
Finance lease liabilities |
|
11,209 |
|
|
|
— |
|
Liability associated with sale
of tax benefits |
|
123,468 |
|
|
|
69,893 |
|
Deferred lease income |
|
1,201 |
|
|
|
48,433 |
|
Deferred income taxes |
|
97,126 |
|
|
|
61,323 |
|
Liability for unrecognized tax
benefits |
|
14,643 |
|
|
|
11,769 |
|
Liabilities for severance
pay |
|
18,751 |
|
|
|
17,994 |
|
Asset retirement
obligation |
|
50,183 |
|
|
|
39,475 |
|
Other long-term
liabilities |
|
6,838 |
|
|
|
16,087 |
|
Total liabilities |
|
1,725,834 |
|
|
|
1,667,651 |
|
|
|
|
|
|
|
Redeemable non-controlling
interest |
|
9,250 |
|
|
|
8,603 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
The Company's stockholders' equity: |
|
|
|
|
|
Common stock |
|
51 |
|
|
|
51 |
|
Additional paid-in capital |
|
913,150 |
|
|
|
901,363 |
|
Retained earnings (accumulated deficit) |
|
487,873 |
|
|
|
422,222 |
|
Accumulated other comprehensive income (loss) |
|
(8,654 |
) |
|
|
(3,799 |
) |
|
|
1,392,420 |
|
|
|
1,319,837 |
|
Noncontrolling interest |
|
122,990 |
|
|
|
125,259 |
|
Total equity |
|
1,515,410 |
|
|
|
1,445,096 |
|
Total liabilities and equity |
$ |
3,250,494 |
|
|
$ |
3,121,350 |
|
|
|
|
|
|
|
ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIESReconciliation of
EBITDA and Adjusted EBITDAFor the Three- and 12-Month Periods Ended
December 31, 2019 and 2018
We calculate EBITDA as net income before
interest, taxes, depreciation and amortization. We calculate
Adjusted EBITDA as net income before interest, taxes, 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 or
loss from extinguishment of liabilities, (viii) gain or loss on
sale of subsidiary and property, plant and equipment and (ix) other
unusual or non-recurring items. EBITDA and Adjusted EBITDA are not
measurements of financial performance or liquidity under accounting
principles generally accepted in the United States, or U.S. GAAP,
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 U.S. GAAP.
We use EBITDA and Adjusted EBITDA as a performance metric because
it is a metric used by our Board of Directors and senior management
in evaluating our financial performance. However, other companies
in our industry may calculate EBITDA and Adjusted EBITDA
differently than we do.
The following table reconciles net income to EBITDA and Adjusted
EBITDA for the three and 12-month periods ended December 31, 2019
and 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
|
2019 |
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
Net income |
$ |
14,127 |
|
$ |
23,089 |
|
|
$ |
93,543 |
|
|
$ |
110,111 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
(including amortization |
|
|
|
|
|
|
|
|
|
|
|
of deferred financing
costs) |
|
17,248 |
|
|
21,576 |
|
|
|
78,869 |
|
|
|
69,950 |
|
Income tax (benefit)
provision |
|
25,477 |
|
|
31,386 |
|
|
|
45,613 |
|
|
|
34,733 |
|
Adjustment to investment in
unconsolidated company: |
|
|
|
|
|
|
|
|
|
|
|
our proportionate share in
interest, tax and depreciation and amortization |
|
5,205 |
|
|
(2,584 |
) |
|
|
13,089 |
|
|
|
9,184 |
|
Depreciation and
amortization |
|
36,260 |
|
|
32,749 |
|
|
|
143,242 |
|
|
|
127,732 |
|
EBITDA |
$ |
98,317 |
|
$ |
106,216 |
|
|
$ |
374,356 |
|
|
$ |
351,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market gains or losses
from accounting for derivatives |
|
507 |
|
|
830 |
|
|
|
(1,402 |
) |
|
|
2,032 |
|
Stock-based compensation |
|
2,127 |
|
|
2,836 |
|
|
|
9,358 |
|
|
|
10,218 |
|
Insurance proceeds in excess
of assets carrying value |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(7,150 |
) |
Loss from extinguishment of
liability |
|
468 |
|
|
— |
|
|
|
468 |
|
|
|
— |
|
Impairment of goodwill, net of
reversal of a contingent liability |
|
— |
|
|
3,142 |
|
|
|
— |
|
|
|
3,142 |
|
Termination fee |
|
— |
|
|
— |
|
|
|
— |
|
|
|
4,973 |
|
Merger and acquisition
transaction cost |
|
733 |
|
|
120 |
|
|
|
1,483 |
|
|
|
2,910 |
|
Write-off of unsuccessful
exploration activities |
|
— |
|
|
7 |
|
|
|
— |
|
|
|
126 |
|
Adjusted EBITDA |
$ |
102,152 |
|
$ |
113,151 |
|
|
$ |
384,263 |
|
|
$ |
367,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Puna's related EBITDA |
|
2,591 |
|
|
(9,587 |
) |
|
|
1,280 |
|
|
|
(13,254 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding
Puna's impact |
|
104,743 |
|
|
103,564 |
|
|
|
385,543 |
|
|
|
354,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIESReconciliation of
Adjusted Net Income attributable to the Company's stockholdersFor
the Three-Month and 12-Month Periods Ended December 31, 2019 and
2018
Adjusted Net Income attributable to the Company's stockholders
and Adjusted EPS are adjusted for one-time expense items that are
not representative of our ongoing business and operations. The use
of Adjusted Net income attributable to the Company's stockholders
and Adjusted EPS is intended to enhance the usefulness of our
financial information by providing measures to assess the overall
performance of our ongoing business.
The following tables reconciles Net income attributable to the
Company's stockholders, Adjusted EPS and Adjusted EPS without the
impact of Puna for the three-month and 12-month periods ended
December 31, 2019 and 2018.
|
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
|
2019 |
|
2018 |
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
(in thousands) |
Net income attributable to the Company's stockholders |
$ |
12.6 |
|
$ |
18.2 |
|
$ |
88.1 |
|
|
$ |
98.0 |
|
|
|
|
|
|
|
|
|
|
|
|
One-time termination
fee |
|
— |
|
|
— |
|
|
— |
|
|
|
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
One-time Goodwill impairment
charge net of earnouts |
|
— |
|
|
3.1 |
|
|
— |
|
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
One-time tax
items |
|
— |
|
|
— |
|
|
(13.3 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income
attributable to the Company's stockholders |
$ |
12.6 |
|
$ |
21.3 |
|
$ |
74.8 |
|
|
$ |
106.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares diluted used in computation of earnings per share
attributable to the Company's stockholders: |
|
51.5 |
|
|
50.9 |
|
|
51.2 |
|
|
|
51.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted
EPS |
|
0.24 |
|
|
0.42 |
|
|
1.46 |
|
|
|
2.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
|
2019 |
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
(in thousands) |
Net income attributable to the Company's stockholders |
$ |
12.6 |
|
$ |
18.2 |
|
|
$ |
88.1 |
|
|
$ |
98.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time termination
fee |
|
— |
|
|
— |
|
|
|
— |
|
|
|
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time Goodwill impairment
charge net of earnouts |
|
— |
|
|
3.1 |
|
|
|
— |
|
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time tax
items |
|
— |
|
|
— |
|
|
|
(13.3 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income
attributable to the Company's stockholders |
$ |
12.6 |
|
$ |
21.3 |
|
|
$ |
74.8 |
|
|
$ |
106.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Puna related matters |
|
3.2 |
|
|
(4.5 |
) |
|
|
7.0 |
|
|
|
(6.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income
attributable to the Company's stockholders excluding impact of
Puna |
|
15.9 |
|
|
16.9 |
|
|
|
81.8 |
|
|
|
99.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares diluted used in computation of earnings per share
attributable to the Company's stockholders: |
|
51.5 |
|
|
50.9 |
|
|
|
51.2 |
|
|
|
51.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted EPS
excluding impact of Puna |
|
0.31 |
|
|
0.33 |
|
|
|
1.60 |
|
|
|
1.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________
1 Reconciliation is set forth below in this release2 Puna’s
gross margin (loss) in the fourth quarter and year-end 2019 was
$(4.5) million and $(9.7) million respectively. Puna’s gross margin
in the fourth quarter and year-end 2018 was $7.8 million and $5.6
million respectively3 Reconciliation is set forth below in this
release4 Reconciliation is set forth below in this release
|
|
Ormat Technologies Contact: |
Investor Relations Agency Contact: |
|
|
Smadar Lavi |
Rob Fink |
|
|
VP Corporate Finance and Head of Investor Relations |
FNK IR |
|
|
775-356-9029 (ext. 65726) |
646-415-8972 |
|
|
slavi@ormat.com |
rob@FNKIR.com |
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