Run of River Power Reports Q3 Results
VANCOUVER, BC, Nov. 28, 2012 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the quarter ended September 30, 2012. The consolidated 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.
- Completed a private placement of $3.65 million in subordinated secured debentures bearing interest at 12%.
- The Company continued construction on the 25 MW Skookum Creek Power Project (the "Project").
- All major permits and licences for the Project have been issued and received.
- Brandywine production and revenues down in Q3 due primarily to hydrological conditions and decreased performance on one of Brandywine's turbines.
"Q3 was a milestone quarter for the Company as construction went into high gear on the 25 MW, $96 million Skookum Creek Power Project. The Company is targeting to have the Project fully commissioned and operating on or before the first quarter of 2014." stated Richard W. Hopp, ROR Power's President and CEO.
|($000's except per share and generation amounts)||
Three Months Ended
Nine Months Ended
Basic and diluted loss per share
Cash flow from (used in) operations
(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.
Q3 2012 electricity sales of $724,945 decreased $235,188 or 24.5% from Q3 2011 sales of $960,133 as a direct result of decreased electricity generated to 12,098 MWh from 16,206 MWh. Electricity production was down due to lower than normal hydrology conditions for the quarter and reduced output from one of the generating units at the plant. September was the driest month on record in over 100 years which contributed to the majority of the reduction in electricity generated for the quarter. YTD 2012 electricity sales of $1,535,179 decreased $121,935 or 7.4% from 2011 YTD sales of $1,657,114. YTD production decreased 8.4% to 25,619 MWh from 27,971 MWh, reflecting the Q3 hydrology conditions and reduced generating efficiency on one of the units.
The Corporation recorded a loss for the third quarter of $327,535 compared to a loss of $99,251 for the comparable quarter in 2011. The increase in the net loss is a result of a decrease in electricity sales and an increase in financing costs. YTD loss decreased $259,257 to $1,866,605 compared to 2011 YTD loss of $2,125,862. The loss, before impairment, would have been $1,587,399 for 2012 YTD, an improvement of $538,463 compared to the YTD results of 2011, due primarily to reduced G&A during the period.
Funds from operations were $290,321 in the third quarter of 2012 compared to funds used in operations of $213,820 for the third quarter of 2011. YTD funds from operations were $177,679 compared to funds use of $862,620 for the comparable nine month period in 2011. The change in funds used in operations for the 2012 quarter and YTD is due primarily to changes in working capital and reduced G&A.
On July 26, 2012 the Company completed a private placement of $3.65 million in subordinated secured debentures ("Debentures"). The principal amount of the Debentures will bear interest at a rate of 12% per annum, payable quarterly in cash, and the Debentures will mature in one year. The proceeds of the private placement will be used to develop, with its partner Concord Pacific, the Skookum Power Project and for general corporate and working capital requirements.
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. With a total development potential of approximately 400 MW, the company is well positioned for profitable growth.
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.For further information:
Richard W. Hopp
President and CEO
Chief Financial Officer