Run of River Power Reports First Quarter Results

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 stated.

Highlights

  • Raised $1.2 million in January through a 12% debenture to fund ongoing development.

  • Subsequent to quarter end, a development plan for the 25 MW Skookum Power Project was submitted to the BC Ministry of Natural Resource Operations.

  • Subsequent to quarter end, $1.4 million was raised through a private placement.

"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 necessary funding."

Financial Summary

Three months ended March 31
($000's except per share & generation amounts)
 
2011
 
2010
 
Electricity sales
EBITDA1
Loss
Basic and diluted loss per share
Cash flow used in operations
Total assets
Generation (MWh)
 
 
152
(672)
(1,191)
(0.01)
(408)
26,680
2,563
 
 
180
(530)
(840)
(0.01)
(134)
29,700
3,069
 

(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.

Operating Results

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.

Financial Position

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.

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 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.

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.

For further information:

Richard W. Hopp
President and CEO
Tel: 604-946-9232
rhopp@runofriverpower.com
  Vick Dusik
Chief Financial Officer
Tel: 604-946-9232
vsdusik@runofriverpower.com

 

Profil de l'entreprise

Run of River Power Inc.

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