TORONTO, Nov. 11, 2011 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott
Power" or "the Company") an owner, operator and developer of renewable
energy projects, today announced its financial and operational results
for the three and nine months ended September 30, 2011.
On August 16, 2011, the Company announced that its subsidiary, SP
Amherst Wind Power LP, had closed its $45.0 million non-recourse,
construction and take-out debt financing for its 31.5 MW Amherst, Nova
Scotia wind project. With the debt financing completed the project has
all the anticipated financing to build out the project. During the
three and nine months ended September 30, 2011, the Company incurred
approximately $6.8 and $19.6 million in construction and wind turbine
acquisition costs with respect to the build out of this wind farm. The
Company expects the project to be operational at the end of the first
quarter of 2012.
On September 19, 2011, the Company completed the sale of its non-core
hydro assets for gross proceeds of up to $4.8 million including $2.7
million in future payments conditional on the purchaser achieving
certain development milestones.
On October 6, 2011, the Company announced that it had acquired the
rights to a 100.0 MW development project near Fort MacLeod, Alberta.
With the addition of this project the Company has a total of 448.1 MW
in its pipeline including 77.2 MW that is operational and under
On November 7, 2011 the Company announced the introduction of an annual
$0.04 cash dividend, payable quarterly. The Board of Directors declared
the first such quarterly cash dividend of $0.01 per share payable on
January 16, 2012 to shareholders of record as of the close of business
on December 30, 2011.
Revenue for the three and nine months ended September 30, 2011, was $1.6
million and $6.2 million respectively. Had the Company consolidated the
revenue from its acquired companies from January 1, 2011, revenue for
the nine months ended September 30, 2011, would have been $7.3 million
(Q1 - $3.2; Q2 - $2.5; Q3 - $1.6). The decrease in the revenue run rate
was expected due to the naturally reduced wind resources in the calmer
Cash used in operations prior to changes in non-cash working capital for
the three and nine months ended September 30, 2011, was $0.7 million
and $0.2 million respectively.
Earnings before interest, income taxes, depreciation and amortization,
and acquisition gain and expenses ("EBITDA"1) was $0.1 million for the three months ended September 30, 2011, and
$2.1 million for the nine months ended September 30, 2011.
The net loss attributable to the shareholders' for the third quarter was
$1.7 million or $0.036 per share and year-to-date was $2.4 million or
$0.051 per share. Included in the loss per share calculations is the
non-cash loss on assets classified as held for sale of nil and $0.012
per share for in the quarter and year to date respectively.
At September 30, 2011, the Company had working capital of $3.9 million
including $5.9 million in cash and $11.0 million in restricted cash.
Current portion of long-term debt includes two tranches of debt on the
Company's Ontario assets which is maturing within 12 months. This debt
is currently being renegotiated and the Company expects that it will be
renewed which would increase the Company's working capital by
approximately $7.1 million. Total assets at September 30, 2011, were
$147.2 million including cash and short- and long-term restricted cash
of $20.8 million; long-term debt was $59.0 million; and total equity
before non-controlling interest was $52.2 million ($1.09 per share on a
non diluted basis).
"We are happy with the progress on the construction of our Amherst
project. Our third quarter production and revenue reflect the reduced
wind resources which naturally occur in the calmer summer months as
expected," said Jeff Jenner, CEO of Sprott Power. "The purchase of the
Alberta development assets adds to our project portfolio and we are
actively seeking further opportunities in North America. The sale of
our Anyox Creek Hydro Electric Project to the founding partners
provides us with $2.1 million in working capital and the best
opportunity for the successful development of the projects to realize
the additional payments."
The Company's full financial statements and Management's Discussion and
Analysis for the quarter ended September 30, 2011, can be found at www.sedar.com or the Company's website at www.sprottpower.com.
Non-IFRS Financial Measures
This press release includes financial terms (including EBITDA) that the
Company utilizes to assess the financial performance of its business
that are not measures recognized under International Financial
Reporting Standards ("IFRS"). These non-IFRS measures should not be
considered alternatives to performance measures determined in
accordance with IFRS and may not be comparable to similar measures
presented by other issuers.
About Sprott Power Corp.
Sprott Power is a publicly-traded (TSX: SPZ) Canadian-based company
dedicated to the development, owning and operating of renewable energy
projects. Through project development efforts, acquisitions,
partnerships and joint ventures, Sprott Power provides its shareholders
with income and growth from the renewable power generation sector of
the energy industry.
Certain information contained in this press release may constitute
"forward-looking information" which reflects the current expectations
of Sprott Power. This information, such as future proceeds on sale of
assets, reflects Sprott Power's current beliefs with respect to future
events and are based on information currently available to management.
Forward-looking information involves significant known and unknown
risks, uncertainties and assumptions. Many factors could cause actual
results, performance or achievements to be materially different from
any future results, performance or achievements that may be expressed
or implied by such forward-looking information including, without
limitation, the risks listed under the heading "Risk and Uncertainties"
in the Management Discussion and Analysis of Financial Results dated
June 13, 2011. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied by
the forward-looking information contained in this release. Although
forward-looking information contained in this release is based upon
what Sprott Power believes to be reasonable assumptions, management
cannot assure investors that actual results, performance or
achievements will be consistent with this forward-looking information.
The forward-looking information is made as of the date of this release
and Sprott Power does not assume any obligation to update or revise it
to reflect new events or circumstances, except as required by law.
1 This MD&A includes financial terms (including EBITDA) that the Company
utilizes to assess the financial performance of its business that are
not measures recognized under International Financial Reporting
Standards ("IFRS"). These non-IFRS measures should not be considered
alternatives to performance measures determined in accordance with IFRS
and may not be comparable to similar measures presented by other
SOURCE Sprott Power Corp.
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