VANCOUVER, Nov. 28, 2013 /CNW/ - Run of River Power Inc.
("ROR Power" or "the Company") (TSXV: ROR) today announced
financial and operating results for the quarter ended September 30, 2013. The condensed consolidated
interim financial statements and management discussion and analysis
will be filed to SEDAR and posted on ROR Power's website
(www.runofriverpower.com). All figures reported herein are in
Canadian dollars unless otherwise stated.
Highlights
For the three and nine month period ending September 30, 2013 the Company recorded net
income of $208,121 and $2,466,270 respectively. The recognition of net
earnings for the three and nine month periods ended September 30, 2013, compared with a net loss for
the same periods in 2012, is in part due to unrealized gains on
derivative financial instruments and a fair value adjustment on the
convertible royalty interest. The following table outlines the
impact on net earnings (loss) of the unrealized net gain (loss) on
derivative financial instruments and convertible royalty
interest:
|
|
|
(In $'s) |
Three months |
Nine months |
For the periods ended September 30 |
2013 |
2012 |
2013 |
2012 |
Net income (loss) |
208,121 |
(327,535) |
2,466,270 |
(1,866,605) |
Add (Subtract) unrealized gain on derivative
financial instruments |
(1,856,503) |
- |
(5,416,936) |
- |
Add (Subtract) fair value adjustment on
convertible royalty interest |
2,411,446 |
- |
2,411,446 |
- |
Adjusted Net Income (Loss) |
763,064 |
(327,535) |
(539,220) |
(1,866,605) |
Financial Summary
|
|
|
($000's except per share and generation
amounts)
For the periods ended September 30 |
Three months |
Nine months |
|
2013 |
2012 |
2013 |
2012 |
Electricity sales |
745 |
725 |
1,605 |
1,535 |
Project development revenue |
1,143 |
- |
1,143 |
- |
EBITDA |
794 |
312 |
4,219 |
42 |
Net Income (Loss) |
208 |
(328) |
2,466 |
(1,867) |
Basic and diluted earnings (loss) per share |
0.00 |
(0.00) |
0.02 |
(0.02) |
Cash flow (used) from in operations |
831 |
290 |
660 |
178 |
Total assets |
28,951 |
29,178 |
28,951 |
29,178 |
Long-term debt |
9,019 |
13,437 |
9,019 |
13,437 |
Generation-MWh |
12,380 |
12,098 |
26,665 |
25,619 |
(1) |
EBITDA is earnings before interest, taxes, depreciation and
amortization and is not a measure under International Financial
Reporting Standards ("IFRS") and may not be comparable to similar
measures presented by other companies. Refer to Non-GAAP measures
section of the MD&A for an explanation and reconciliation. |
Operating Results
For the three month period ending September 30, 2013 ("Q3 2013") electricity sales
of $744,926 increased $19,981 or 2.8% compared to the three month
period ending September 30, 2012 ("Q3
2012") sales of $724,945 as a direct
result of increased electricity generated to 12,380 MWh from 12,098
MWh. For the nine month period ending September 30, 2013 ("YTD") electricity sales of
$1,604,556 increased $68,837 or 4.5% compared to the nine month period
ending September 30, 2012 ("2012
YTD") sales of $1,537,719. YTD
production increased 4.1% to 26,665 MWh from 25,619 MWh. The
increase in electricity generation and sales is attributable to
increased conversion effectiveness as a result of the Brandywine
runner upgrade completed in June
2013, using similar hydrology for comparative quarters.
Plant operations for Q3 2013 of $316,089 decreased by $13,753, or 4.2%, from the same quarter in 2012
of $329,842. YTD plant
operating expense of $940,378
decreased by $45,157, or 4.6%, from
2012 YTD expense of $985,535. The
decrease was due to increased reliability at the plant.
The Company recorded net income for the third quarter of
$208,121 compared to a loss of
$327,535 for the comparable quarter
in 2012. YTD net income of $2,466,270
increased $4,332,875 from the YTD
2012 loss of $1,866,605. The
significant increase in net income is a result of net unrealized
gains recorded on derivative financial instruments. The net loss
before unrealized gains on derivative financial instruments and the
fair value adjustment on the convertible royalty interest
("Adjusted Net Income (Loss)") for three and nine month period
ending September 30, 2013 is earnings
of $763,064 and a loss of
$539,220 respectively.
The Adjusted Net Income for Q3 2013 was $763,064 which represents an increase in earnings
of $1,090,599 from an Adjusted Net
Loss of $327,535 due to the
recognition of project development revenue in the quarter. The
Corporation incurred an YTD Adjusted Net Loss of $539,220 compared to an Adjust Net Loss of
$1,866,605 a decrease of $1,327,385. The change in the Adjusted Loss
compared to the YTD 2012 Adjusted Net Loss is a result of project
development revenue being recognized for the development of the
Skookum Project.
Funds from operations were $830,593 in the third quarter of 2013 compared to
funds from operations of $290,321 for
the third quarter of 2012. YTD funds from operations were
$659,893 compared to $177,679 for the comparable nine month period in
2012. The change in funds used in operations for the 2013 quarter
and YTD is due to the increase revenue from project development and
changes in working capital items.
Financial Position
At September 30,
2013, the Company had $1.1M in
cash on hand. These cash resources will be used to fund
operations.
The Company will need to raise capital to support its
administrative obligations, pursue development of its other early
stage projects as well as for the redemption of the 10% convertible
debentures, should they not be converted into shares of the Company
and for the redemption of the subordinated secured debentures which
come due in January 2014.
Non-GAAP Measures
The Company reports its financial position, results of
operations and cash flows in accordance with International
Financial Reporting Standards ("IFRS").
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its
portfolio of clean energy projects. The company helps diversify
BC's energy mix by providing a cleaner way to generate power and
increasing the security of BC's energy supply. ROR Power
operates an Eco Logo© certified hydroelectric power generation
station at Brandywine Creek, near Whistler, BC that provides green power for
about 4,000 homes. The company is well positioned for profitable
growth through power generation initiatives that include its
economic interest in the 25 MW Skookum Power Project. ROR Power's
total development potential is approximately 390 MW.
Forward-Looking Statements
Statements in this release which describe Run of River Power
Inc.'s intentions, expectations or predictions, or which relate to
matters that are not historical facts are forward-looking
statements. These forward-looking statements involve unknown risks
and uncertainties which may cause the actual results, performances
or achievements of Run of River Power Inc. to be materially
different from any future results, performances or achievements
expressed in or implied by such forward-looking statements. Run of
River Power Inc. 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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Run of River Power Inc.