Maxim Power Corp. Announces Third Quarter 2009 Results
November 12 2009 - 4:08PM
Marketwired Canada
Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") announced today that
it released its financial and operating results for the third quarter of 2009.
The unaudited consolidated financial statements, accompanying notes and
Management's Discussion and Analysis ("MD&A") will be available on SEDAR on
November 13, 2009 and on MAXIM's website. All figures reported herein are in
Canadian dollars unless otherwise stated.
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
($ in thousands except per
share amounts) 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue $ 27,628 $ 31,042 $ 101,761 $ 93,253
EBITDA (1) 6,696 11,189 24,844 21,143
Net income 848 3,804 1,624 3,792
Per share-basic and diluted $ 0.02 $ 0.07 $ 0.03 $ 0.08
Cash provided by operations 4,631 5,350 23,887 13,595
Per share-basic and diluted $ 0.09 $ 0.10 $ 0.44 $ 0.29
Electricity Deliveries (MWh) 329,301 275,297 864,088 666,410
Net Generation Capacity
(MW)(2) 788 757 788 757
Average Alberta Prices
($ per MWh) $ 50 $ 80 $ 48 $ 88
Average Milner Realized
Electricity Price
($ per MWh) $ 50 $ 75 $ 51 $ 79
----------------------------------------------------------------------------
(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
During the third quarter of 2009, Milner generated the highest number of
megawatt ("MW") hours for a quarter since the commencement of commercial
operations in 1972. On an overall company basis, the third quarter of 2009 also
included two of the best generating months since the company was formed. The
benefit of increased generation was offset by lower power prices realized at
Milner, which averaged $50 per MWh for the third quarter of 2009 compared to $75
per MWh for the same quarter in 2008. As a result of the decrease in the average
Alberta power price, revenue, EBITDA, net income and cash provided by operations
have decreased compared to the third quarter of 2008.
On a year to date basis, revenue, EBITDA, and cash provided by operations all
increased primarily due to the shorter duration of the 2009 Milner turnaround
compared to 2008, acquisitions of generating facilities in North America and
France, and the strength of the US dollar and Euro compared to the Canadian
dollar. This increase was partially offset by lower power prices realized at
Milner, which averaged $51 per MWh in the first nine months of 2009 compared to
$79 per MWh in 2008. Production for the first nine months of 2009 totaled
864,088 MWh compared to 666,410 MWh in 2008, reflecting the shorter duration of
the 2009 turnaround, the acquisition of Pittsfield, and the strong performance
at Milner during the third quarter.
DEVELOPMENT PROJECTS
#14 Mine
As previously announced, the Energy Resources Conservation Board ("ERCB" or
"Board") has decided that, subject to the customary authorization of the
Lieutenant Governor in Council, the Board will approve the application by
MAXIM's wholly-owned subsidiary, Milner Power Inc., for a permit to develop the
Milner #14 coal mine and a license to commence mining operations. In its
decision, the Board noted that the application meets all ERCB requirements.
MAXIM anticipates that it will receive authorization of the Lieutenant Governor
in Council prior to the end of 2009.
The #14 Mine is an underground coal mine to be located north of Grande Cache,
Alberta and is estimated to contain 26 million tonnes (13 million recoverable
tonnes) of high quality metallurgical coal (refer to technical report filed on
SEDAR on May 22, 2005). MAXIM considers this resource to be valuable both as a
potential fuel source for its existing HR Milner generating facility and its
planned 500 MW expansion of the HR Milner generating facility, and for potential
sale to international metallurgical coal markets.
Deerland Peaking Station
As previously announced, MAXIM has received regulatory approvals from the
Alberta Utilities Commission and Alberta Environment to construct and operate
the Deerland Peaking Station, a 190 MW natural gas-fired peaking facility. The
station is to be located immediately adjacent to the existing Deerland high
voltage substation in Alberta's industrial heartland, an area expected to
experience significant growth in electrical demand. Construction of the facility
is expected to take approximately twelve months once the key commercial
arrangements necessary to support construction have been concluded. These
arrangements will in MAXIM's opinion surface with improved market heat rates.
Milner Expansion
In January 2009 MAXIM submitted applications to the Alberta Utilities Commission
and Alberta Environment to construct and operate a 500 MW coal-fired generation
facility adjacent to its existing Milner facility. The regulatory review process
has commenced and is expected to conclude in 2010.
Buffalo Atlee
MAXIM is acquiring the Buffalo Atlee Power Project ("Buffalo Atlee"), situated
near Brooks, Alberta, through an amalgamation with EarthFirst Canada Inc. This
project has the potential for development of 200 MW of wind generation capacity.
Wind data has been collected on the site for approximately four years and
Buffalo Atlee holds an exploratory Crown land permit with a term of four years,
expiring on January 1, 2011. The addition of wind generation to MAXIM's existing
portfolio of assets will diversify MAXIM's generation fuel types and provides
the potential to offset the impact of proposed carbon legislation. MAXIM intends
to further investigate the economic feasibility of developing this project
following the amalgamation with EarthFirst Canada Inc. Closing of the
amalgamation is subject to certain conditions including completion of the
previously announced sale by EarthFirst of its Dokie I project, a vote by MAXIM
shareholders in favour of the Arrangement, approval of the arrangement agreement
by the Court of Queen's Bench of Alberta pursuant to EarthFirst's ongoing CCAA
proceedings, and customary court and regulatory approvals (including those of
the Toronto Stock Exchange) required for the Arrangement.
FINANCING
Sebi and Chabossiere
On July 29, 2009, COMAX closed the bank financing for the purpose of repowering
the Sebi and Chabossiere facilities acquired on February 27, 2009. COMAX has
arranged for a twelve year term loan agreement with a French bank for $9.5
million (EUR 6.2 million).
GUIDANCE
MAXIM is confirming guidance for projected 2009 EBITDA and Cash Flow from
Operations, and is updating guidance for 2009 Net Income.
----------------------------------------------------------------------------
2009 Guidance Provided Updated 2009
($000's, except per share amounts) on August 14, 2009 Guidance
----------------------------------------------------------------------------
EBITDA 39,000. 39,000
Net income 7,800 5,900
Per share - basic and diluted $ 0.14 $ 0.11
Cash provided by operations 34,000 34,000
Per share - basic and diluted $ 0.63 $ 0.63
----------------------------------------------------------------------------
Net income forecast for 2009 declines from estimated net income of $7.8 million
as forecast on August 14, 2009 to $5.9 million as forecast on November 12, 2009.
The decline of $1.9 million is primarily due to depreciation expense for Milner
being higher than anticipated.
CONFERENCE CALL FOR THE THIRD QUARTER 2009 RESULTS
MAXIM will host a conference call for analysts and investors on Thursday,
November 19, 2009 at 12:00 p.m. MT (2:00 p.m. ET). The call will be hosted by
John R. Bobenic, MAXIM's President and Chief Executive Officer and Michael R.
Mayder, MAXIM's Vice President, Finance and Chief Financial Officer.
To participate in this conference call, please dial (416) 340-8018 or (866)
223-7781. It is recommended that participants call at least ten minutes prior to
start time.
A recording of the conference call will be available following the conference
call from 2:00 p.m. MT (4:00 p.m. ET) on November 19, 2009 until November 26,
2009 at 9:59 p.m. MT (11:59 p.m. ET). To access this replay, please dial (416)
695-5800 followed by the passcode 7173402. In addition, the webcast will be
available in the Investor Relations section of MAXIM's website 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 39 power plants in
western Canada, United States and France, having 788 MW of electric and 137 MW
of thermal net 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
