VANCOUVER, May 26, 2011 /CNW/ - Run of River Power Inc. ("ROR Power" or
"the Company") (TSXV: ROR) today announced financial and operating
results for the quarter ended March 31, 2011. 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
Raised $1.2 million in January through a 12% debenture to fund ongoing
Subsequent to quarter end, a development plan for the 25 MW Skookum
Power Project was submitted to the BC Ministry of Natural Resource
Subsequent to quarter end, $1.4 million was raised through a private
"Energy generation at our Brandywine facility declined a small amount in
Q1 due primarily to colder than normal weather. The upside is that snow
inventories have continued to build to near record highs and we believe
some of the snowpack melt normally seen in this quarter may lead to
higher Q2 and Q3 generation," said Richard W. Hopp, President and CEO.
"We continue advancing our Skookum Power Project, preparing
construction schedules and evaluating alternatives for raising the
Three months ended March 31
($000's except per share & generation amounts)
Basic and diluted loss per share
Cash flow used in operations
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization 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 measures
section of the MD&A for an explanation and reconciliation.
Q1 2011 electricity sales of $151,824 decreased $27,875 or 15.5% from
2010 sales of $179,699 as a direct result of decreased electricity
generated to 2,563 MWh from 3,069 MWh. The decrease in electricity
generation and sales is attributable to decreased production at the
Brandywine Creek facility from an exceptionally cool winter.
EBITDA for Q1 2011 was negative $671,834 compared to negative $530,129.
The reduction in EBITDA is due to reduced production and higher G&A
expense related to terminations paid to former biomass employees.
The Company recorded a loss for the first quarter of $1,190,750 compared
to a loss of $840,331 for the comparable quarter in 2010. The
increased loss of $350,419 is due primarily to increased G&A expense
and finance costs. The Corporation incurred additional interest expense
of $219,875 in Q1 2011 on the $3.1 million 10% convertible debentures
issued in August 2010, the 12% debentures issued in January 2011, as
well as from the increase in the interest rate on the Brandywine
facility from 6.33% to 7.50%.
Funds used in operations were $408,078 in the first quarter of 2011
compared to $133,754 for the first quarter of 2010. This increase in
funds used in operations of $274,324 during the first quarter of 2011
is due principally to funding increased operating losses in Q1 2011.
On May 17, 2011, the Company closed a private placement for $1.4
million. All funds raised will be used for ongoing development and
general corporate purposes.
With the award of an EPA for the Skookum Power Project, the Company
forecasts that $80 million of additional debt and equity capital will
be required to complete this project, the majority of which will be
required in 2012 and 2013 as construction is initiated. Accordingly,
the Company is evaluating alternatives for raising the necessary equity
capital and project debt to complete this project.
The Company reports its financial position, results of operations and
cash flows in accordance with International Financial Reporting
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio
of clean energy projects. The Company operates an Eco Logo© certified
hydroelectric power generation station at Brandywine Creek, near
Whistler, BC that generates cash flow under a 20-year contract with BC
Hydro. ROR Power is well positioned for profitable growth through power
generation initiatives that include its 25 MW Skookum Power Project,
awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR
Power's total development potential in excess of 600 MW represents a
significant opportunity to help BC meet its rising demand for clean,
sustainable power and achieve energy self-sufficiency by 2016.
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.
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