Maxim Power Corp. Announces Second Quarter 2011 Financial and Operating Results
August 11 2011 - 6:33PM
Marketwired Canada
Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today the
release of financial and operating results for its second quarter ended June 30,
2011. The unaudited financial statements, accompanying notes and Management
Discussion and Analysis will be available on SEDAR on August 12, 2011 and on
MAXIM's website. All figures reported herein are Canadian dollars unless
otherwise stated.
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
($ in thousands except per share
amounts) 2011 2010 2011 2010
----------------------------------------------------------------------------
Revenue $ 17,844 $ 32,657 $ 72,881 $ 83,432
Adjusted EBITDA (1) (2,199) 10,676 13,593 23,237
Net income (loss) (5,475) 534 (916) 24,774
Per share-basic and diluted $ (0.10) $ 0.01 $ (0.02) $ 0.46
Funds from (used in) operations (135) 7,440 14,177 18,961
Per share-basic and diluted $ (0.00) $ 0.14 $ 0.26 $ 0.35
Electricity Deliveries (MWh) 180,535 261,942 572,540 646,577
Net Generation Capacity (MW)(2) 809 773 809 773
Average Alberta Prices ($ per MWh) $ 52.12 $ 80.56 $ 67.73 $ 60.72
Average Milner Realized Electricity
Price ($ per MWh) $ 53.70 $ 92.69 $ 64.78 $ 64.05
----------------------------------------------------------------------------
(1) Select financial information was derived from the unaudited interim
consolidated financial statements and is prepared in accordance with
Canadian generally accepted accounting principles ("GAAP"), except
Adjusted EBITDA and Funds from operations ("FFO"). Adjusted EBITDA is
provided to assist management and investors in determining the
Corporation's approximate operating cash flows before interest, income
taxes, and depreciation and amortization and FFO is provided to assist
management and investors in determining the Corporation's cash flows
generated by operations before the cash impact of working capital
fluctuations. Adjusted EBITDA and FFO do not have any standardized
meaning prescribed by Canadian GAAP and may not be comparable to similar
measures presented by other companies. Refer to Non-GAAP measures in
MAXIM's MD&A for reconciliations between non-GAAP financial measures and
comparable measures calculated in accordance with Canadian GAAP.
(2) Generation capacity is manufacturer's nameplate capacity net of minority
ownership interests of third parties.
OPERATING RESULTS
Revenue for the second quarter of 2011 decreased $14.8 million or 45% to $17.8
million. Earnings before interest, taxes, depreciation and amortization (refer
to Non-IFRS measures - "Adjusted EBITDA" in the MD&A), decreased $12.9 million
to ($2.2) million in the second quarter of 2011 from $10.7 million in the same
quarter of 2010. MAXIM generated 180,535 MWh in second quarter of 2011 compared
to 261,942 MWh for the same quarter in 2010, which is a decrease of 81,407 MWh
or 31%. The drop in these performance measures reflects the impact of lower
Alberta power prices during the quarter. Adjusted EBITDA and funds from
operations decreased by a lesser amount than revenue due to the reduced coal
costs associated with Milner's reduced electricity generation.
MAXIM incurred a net loss of $5.5 million during the second quarter of 2011,
which reflects a $6.0 million decrease from the $0.5 million in net income
earned during the same period of prior year. The decrease in net income is due
to the lower revenue noted above and is further reduced by a non-cash unrealized
loss on floating for fixed price commodity swaps. Note that prior year net
income was reduced by $7.6 million because of a non-recurring impact of an
arbitration settlement reached in May 2010.
On a year to date basis, revenue, adjusted EBITDA, and funds from operations
have decreased $10.5 million, $9.6 million, and $4.8 million, respectively, when
compared to the same period of 2010. The negative impact of low second quarter
2011 Alberta power prices and production volumes across MAXIM's generation
portfolio was partially offset by higher Alberta power prices and higher
earnings from MAXIM's US Northeast facilities for the first half of the year.
GROWTH INITIATIVES
Mine 14
MAXIM has extracted, and is now testing unoxidized coal in order to prepare
detailed metallurgical specifications of the low volatile resource and finalize
the wash plant design. Subject to confirmation of satisfactory financing
arrangements, construction activities are targeted to commence in September 2011
and MAXIM anticipates that Mine 14 will be fully commissioned and producing coal
in 2013. Various options to capitalize/monetize Mine 14 are still under
evaluation.
Milner Expansion
On June 30, 2011, the Alberta Utilities Commission ("AUC") issued an interim
decision to approve MAXIM's application to construct and operate the 500 MW HR
Milner expansion project ("M2"). Subsequently, a party made an application for
leave to appeal the interim decision of the AUC. On August 10, 2011, the AUC
issued their final decision approving the project and rescinding the interim
decision. MAXIM did not consider that any appeal of the interim decision would
have merit and intends to oppose any application for leave to be granted for the
final decision.
Deerland Peaking Station
MAXIM received all required regulatory approvals to construct and operate the
Deerland Peaking Station which is a 190 MW natural gas-fired peaking facility
that will be located in Bruderheim, Alberta, immediately adjacent to the
existing Deerland high voltage substation in Alberta's Industrial Heartland.
This area is expected to experience significant growth in electrical demand.
Subject to satisfactory electricity market conditions and conclusion of
commercial arrangements necessary to support the investment, MAXIM will initiate
construction of this shovel-ready project.
Buffalo Atlee
The Buffalo Atlee Power Project, situated near Brooks, Alberta, has the
potential for over 200 MW of wind generation capacity. Wind data has been
collected on the 22,000 acre project site for 5 years. MAXIM holds an
exploratory Crown land permit with a term of five years, expiring on January 1,
2016. The addition of wind generation to MAXIM's existing portfolio of assets
would diversify MAXIM's generation fuel types.
CONFERENCE CALL FOR Q2 2011 RESULTS
MAXIM will host a conference call for analysts and investors on August 23, 2011
at 10:00 a.m. MT (12:00 p.m. ET). The call will be hosted by John Bobenic,
MAXIM's President and Chief Executive Officer, and by Mike Mayder, Vice
President, Finance and Chief Financial Officer. To participate in this
conference call, please dial (877) 240-9772 or (416) 340-8527 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. MT (3:00
p.m. EDT) on August 23, 2011 until September 6, 2011 at 9:59 p.m. MDT (11:59
p.m. ET). To access this replay, please dial (800) 408-3053 or (905) 694-9451
followed by the passcode 1006485. In addition, the recording will be available
commencing August 24, 2011 in the Investor Relations section of MAXIM's website.
About MAXIM
Based in Calgary, Alberta, MAXIM is an Independent Power Producer ("IPP")
engaged in the acquisition and development, ownership and operation of power
generation facilities and the resultant sale of generating capacity, electricity
and thermal energy. MAXIM currently owns and operates 44 power plants in western
Canada, United States and France, having 809 MW of electric and 117 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
