Maxim Power Corp. Announces First Quarter 2009 Financial and Operating Results
May 14 2009 - 5:57PM
Marketwired Canada
Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") announced today that
it released its financial and operating results for the first quarter of 2009.
The unaudited consolidated financial statements, accompanying notes and
Management's Discussion and Analysis ("MD&A") will be available on SEDAR on May
15, 2009 and on MAXIM's website. All figures reported herein are in Canadian
dollars unless otherwise stated.
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31
2009 2008
($ in thousands except per share amounts)
Revenue $ 55,276 $ 47,414
EBITDA(1) 17,433 15,489
Net income 5,003 6,090
Per share diluted $ 0.09 $ 0.14
Cash provided by operations 20,298 22,002
Per share diluted $ 0.37 $ 0.50
Electricity Deliveries (MWh) 335,009 295,546
Net Generation Capacity (MW)(2) 773 492
Average Alberta Electricity Price ($ per MWh) $ 63 $ 77
Average Milner Realized Electricity Price ($ per
MWh) $ 69 $ 77
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization, and discontinued operations and is not a measure under
Canadian Generally Accepted Accounting Principles ("GAAP") and may not
be comparable to similar measures presented by other companies. Refer to
Non-GAAP measure section of the MD&A for an explanation and
reconciliation.
(2) Net generation capacity is manufacturer's nameplate capacity net of
minority ownership interests of third parties.
OPERATING RESULTS
The first quarter 2009 represented MAXIM's best first quarter ever in terms of
revenue. During the quarter, MAXIM generated revenue of $55.3 million compared
to $47.4 million for the same quarter in 2008, an increase of $7.9 million or
16.6%. Quarter over quarter, EBITDA was $17.4 million versus $15.5 million for
an increase of $1.9 million; cash provided by operations was $20.3 million
versus $22.0 for a decrease of $1.7 million; net income was $5.0 million versus
$6.1 million for a decrease of $1.1 million, and electrical generation was
335,009 MWh versus 295,546 MWh, an increase of 39,463 MWh.
The improved quarter-over-quarter performance for revenue and EBITDA was driven
by the 2008 acquisition of the Forked River and Pittsfield generating stations
and two cogeneration facilities in France, and the impact of a stronger U.S.
dollar and Euro vis-a-vis the Canadian dollar. This was offset by a lower
average power price realized at Milner of $69 per MWh during the first quarter
of 2009 versus $77 per MWh during the same period in 2008. The decrease in net
income is attributed to higher depreciation and amortization, as a result of the
acquisitions and higher interest costs resulting from the higher average debt
balance from the 2008 Milner turnaround and the acquisitions.
ACQUISITIONS
Sebi and Chabossiere
On February 27, 2009, Comax France S.A.S. ("COMAX"), MAXIM's wholly-owned
subsidiary, closed the purchase of the Sebi and Chabossiere facilities in France
for $1.6 million (EUR 1.0 million) plus working capital. These acquisitions were
initially funded through a new capital lease agreement on an existing facility
for $617 thousand (EUR 378 thousand) and internal cash flow. Subsequent to March
31, 2009, COMAX closed a loan agreement and received EUR 920 thousand to support
this acquisition. These acquisitions added 16 MW of electricity capacity,
bringing MAXIM's generating portfolio in France to 24 power plants having a
total of 148 MW electric and 127 MW thermal installed generating capacity. COMAX
intends on repowering theses facilities at an estimated cost of EUR 6.2 million
which is expected to be financed through debt. These renovations will add an
additional 10.8 MW of electrical and thermal capacity bringing the total
capacity in France to 160 MW of electrical and 137 MW of thermal.
GUIDANCE
MAXIM's results are significantly impacted by Alberta spot power prices. In
preparing its guidance, management uses Alberta forward electricity prices as a
proxy for Alberta spot electricity prices. The market for forward contracts is
relatively illiquid and forward prices may not be a good predictor of settled
prices as they may not factor in events such as unplanned outages that can cause
a significant increase in settled power prices. Notwithstanding, MAXIM prepares
its guidance using forward electricity prices from independent sources.
Management has determined that it is necessary to update its guidance due to a
reduction in forward electricity prices in Alberta.
Updated 2009 guidance
----------------------------------------------------------------------------
($000's, except per share amounts) Original Updated
Guidance Guidance
----------------------------------------------------------------------------
EBITDA 63,000 48,000
Net income 23,000 14,500
Per share - basic and diluted $ 0.42 $ 0.27
Cash provided by operations 45,000 42,000
Per share - basic and diluted (i) $ 0.82 $ 0.78
----------------------------------------------------------------------------
(i) Share data per assumptions.
The guidance provided herein is based on the following assumptions:
----------------------------------------------------------------------------
($000's, except as otherwise noted) Original Updated
Guidance Guidance
----------------------------------------------------------------------------
Electricity deliveries (MWh) 1,390,000 1,330,000
Net generation capacity at year ending
(MW) 757 773
Capital expenditures (excluding
acquisitions)
HR Milner 4,000 4,000
Other assets 6,000 6,000
Development projects 2,000 2,000
Average Alberta spot electricity price $ 82.00 $ 59.00
Average annual foreign exchange rates
C$/USD $ 1.09 $ 1.20
C$/EUR $ 1.60 $ 1.50
Weighted average shares outstanding
(000's) 54,574 54,182
----------------------------------------------------------------------------
The 2009 forecast assumes all sales of Milner output at Alberta spot market
prices. In France, the cogeneration season ends on March 31, 2009 and a new
season begins on November 1, 2009. There are no acquisitions assumed to take
place during 2009 other than the two France facilities acquired in February 2009
and the Corporation is not exposed to refinancing risk in 2009. MAXIM continues
its development initiatives related to the Milner Expansion project and the #14
Mine project. In addition, the 2009 forecast assumes turnaround maintenance will
occur in the first half of the year at both Milner and CDECCA, and in late fall
at Pawtucket. The 2009 Milner turnaround is expected to last twenty-seven days
in 2009, which is significantly shorter than the extended turnaround of eight
weeks in 2008.
CONFERENCE CALL FOR Q1 2009 RESULTS
MAXIM will host a conference call for analysts and investors on Friday, May 15,
2009 at 10:00 a.m. MDT (12:00 p.m. EDT). The call will be hosted by John
Bobenic, MAXIM's President and Chief Executive Officer and Mike Mayder, Vice
President, Finance and Chief Financial Officer.
To participate in this conference call, please dial (866) 225-2055 or (416)
340-8061 in the Toronto area. It is recommended that participants call at least
ten minutes prior to start time.
A recording of the conference call will be available from 1:00 p.m. MDT (2:00
p.m. EDT) on May 15, 2009 until May 22, 2009 at 9:59 p.m. MDT (11:59 p.m. EDT).
To access this replay, please dial (800) 408-3053 or (416) 695-5800 followed by
the passcode 4526543. In addition, the webcast will be available commencing May
28, 2009 in the Investor Relations section of MAXIM's web site at
www.maximpowercorp.com.
About MAXIM
Based in Calgary, Alberta, MAXIM is an Independent Power Producer, which
acquires or develops, owns and operates innovative and environmentally
responsible power projects. MAXIM currently owns and operates 37 power plants in
western Canada, the United States and France, having 773 MW of electric and 137
MW of thermal generating capacity. Approximately 80% of MAXIM's current
portfolio is comprised of clean burning natural gas, high efficiency
cogeneration, waste heat and landfill gas fuelled generation. MAXIM trades on
the TSX under the symbol "MXG". For more information about MAXIM, visit our
website at www.maximpowercorp.com.
Statements in this release which describe MAXIM's intentions, expectations or
predictions, or which relate to matters that are not historical facts are
forward-looking statements. These forward-looking statements involve known and
unknown risks and uncertainties which may cause the actual results, performances
or achievements of MAXIM to be materially different from any future results,
performances or achievements expressed in or implied by such forward-looking
statements. MAXIM 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.
Maxim Power (TSX:MXG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Maxim Power (TSX:MXG)
Historical Stock Chart
From Jul 2023 to Jul 2024
