VANCOUVER, May 27, 2009 /CNW/ - Run of River Power Inc. ("ROR Power" or
"the Corporation") (TSX-V: ROR) today announced financial and operating
results for the first quarter ended March 31, 2009. The Management's
Discussion and Analysis, consolidated financial statements and accompanying
notes will be filed to SEDAR and posted on ROR Power's website
www.runofriverpower.com. All figures reported herein are Canadian dollars
unless otherwise stated.Highlights
- The outcome of the May 12 provincial election in British Columbia
provides political certainty for the Corporation's run of river and
biomass renewable energy development projects.
- Operating results at the Brandywine Creek facility were down compared
to the first quarter of last year due to reduced water flows from
delayed snowpack melt and lower annual rainfall. With the completion
of scheduled maintenance the facility resumed normal operations."We are pleased the recent election result in British Columbia removed
the uncertainty surrounding the future of independent power producers and
clean energy in the province," said Jako Krushnisky, President and CEO. "IPPs
will continue to be called upon to produce green energy as part of the
province's pursuit of energy self sufficiency. We look forward to continued
dialogue with BC Hydro about our Upper Pitt and Mamquam Power Projects, which
together represent nearly 200 MW of capacity, that have been submitted to the
Clean Power Call. ROR Power also continues to engage with First Nations in
whose traditional territories our run of river and biomass projects are
situated. Our open and forthright negotiations have been positive and we
expect to announce several milestone agreements over the next several months."Financial Summary
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(All financial amounts Three Months Ended
in Canadian dollars) March 31
2009 2008
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Electricity Sales 85,546 109,197
EBITDA(1) (395,288) (504,222)
Net loss (745,945) (767,716)
Basic and diluted loss per share (0.01) (0.01)
Cash flow from (used in) operations (470,840) (501,540)
Total assets 31,455,032 33,243,461
Generation (MWh) 1,471 1,888
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(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
For the quarter ended March 31, 2009, electricity generation decreased
22% to 1,471 MWh, resulting in a similar drop in electricity sales to $85,546.
EBITDA in Q1 2009 of ($395,288) was a $108,934 improvement from the same
period in 2008. The Corporation recorded a net loss for the first quarter of
2009 of $745,945 compared to $767,716 for the same period in 2008. Funds used
in operations were $470,840 for the first quarter of 2009 compared to $501,540
for the same period of 2008. Basic and diluted loss per share in Q1 2009 was
$0.01, unchanged from the same period in 2008.
The reduction in generation and resultant revenues is attributable to the
Brandywine Creek facility, which is subject to weather-related factors and
seasonality in which the first quarter is historically the lowest for the
year. In the first quarter of 2009, generation was affected by slower than
normal snowpack melt and reduced rainfall compared to last year. Offsetting
this revenue reduction was lower general and administrative expenses, namely
legal expenditures and stock based compensation.
Non-GAAP Measures
The Corporation reports its financial position, results of operations and
cash flows in accordance with Canadian generally accepted accounting
principles ("GAAP") in Canadian dollars.
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. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this press release.
About Run Of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of
run-of-river and biomass projects in BC. The Corporation operates an Eco
Logo(C) certified hydroelectric power generation station at Brandywine Creek,
near Whistler, BC, which generates cash flow under a long-term 20 year
contract with BC Hydro. ROR Power is well positioned for profitable growth
from generating green power and its dominant position in the sea-to-sky
corridor in pursuit of high-quality, power generation initiatives. Its total
development potential in excess of 740 MW is addressing the increasing demand
for clean, sustainable power and energy self sufficiency.The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.%SEDAR: 00013735E
For further information: Jako Krushnisky, President and CEO, Run of
River Power Inc., Tel: (604) 946-9232, jako@runofriverpower.com; Vick Dusik,
Chief Financial Officer, Run of River Power Inc., Tel: (604) 946-9232,
vsdusik@runofriverpower.com
