VANCOUVER, May 29, 2014 /CNW/ - Run of River Power Inc. ("ROR" or the "Company") (TSX-V:ROR) announces its financial and operating results for the
quarter ended March 31, 2014. The unaudited condensed consolidated
interim financial statements and management discussion and analysis for
the quarter ended March 31, 2014 have been filed on SEDAR and posted on
ROR's website (www.runofriverpower.com). All figures reported herein
are in Canadian dollars unless otherwise stated.
For the period ended March 31, 2014, the Company incurred a net
comprehensive loss of $1,002,881, and, as at that date, has an
accumulated deficit of $35,216,445 and a working capital deficit of
$19,068,607. To date, the Company has financed its operations
primarily through debt and equity issuances and through the disposition
Selected Financial Information(1)
($000's except per share and generation amounts)
Basic and diluted loss per share
Cash flow from (used in) operations
Long-term debt (reclassified to held for sale disposal group March 2014)
(1)Selected financial information was derived from the condensed
consolidated interim financial statements for the quarter ended March
31, 2014 with certain comparative figures and is prepared in accordance
with International Financial Reporting Standards ("IFRS"). EBITDA is
provided to assist management and investors in determining the
Corporation's cash flow provided by operations before interest, taxes,
depreciation and amortization and does not have any meaning prescribed
in IFRS and may not be comparable to similar measures presented by
other companies. Refer to Non- GAAP measures - EBITDA following for the
reconciliation between this non-GAAP financial measure and comparable
measures calculated in accordance with IFRS.
For the period ending March 31, 2014 ("Q1 2014") electricity sales of
$87,765 decreased $37,393 or 34.3% from March 31, 2013 ("Q1 2013")
sales of $125,158 as a direct result of a decrease in electricity
generated to 1,367 MWh from 2,080 MWh. Electricity production was down
due to lower hydrology conditions for the year despite an overall
improvement in the facility's conversion effectiveness.
Q1 2014 plant operating expense of $139,774 increased by $4,430 or 3.3%
from the Q1 2013 figure of $135,344. The increase was due to added
maintenance in the quarter.
General and administration ("G&A") expense of $282,002 during Q1 2014
was $98,071 or 25.8% lower than the total of $380,073 during Q1 2013.
The decreased G&A was due to reduced project development activities in
The Corporation incurred net finance costs of $400,331 during Q1 2014
compared to $412,547 for Q1 2013. This decrease of $12,216 or 3% was
due to a reduction in the long term debt for the Brandywine facility.
Funds used in operations in Q1 2013 were $594,533 compared to funds from
operations of $135,806 in the current period. This improvement of
$730,339 was due to changes in working capital items
Financial Position and Going Concern
As at March 31, 2014, the Corporation had $500,061 cash on hand, of
which $5,113 was restricted cash. These cash resources will be used to
fund the Corporation's ongoing working capital requirements.
The success of the Corporation is dependent on its ability to
economically generate electrical power and its ability to sell the
electricity generated on a profitable basis to BC Hydro and other
Electricity Purchase Agreements. There is no certainty that such
events will occur and that sources of financing will be obtained on
acceptable terms. Whether and when the Corporation can achieve
profitability and positive cash flow is also uncertain. These material
uncertainties cast significant doubt on the Corporation's ability to
continue as a going concern.
On May 5, 2014, a definitive arrangement agreement ("Arrangement") was
entered into with Concord SCCP General Partner (I) Inc. ("Concord"),
ROR Acquisition Ltd. ("AcquireCo"), a wholly-owned subsidiary of
Concord, the Company (or ROR Power), Rockford Energy Corp. ("REC"), a
wholly-owned subsidiary of the Company, and 0999130 B.C. Ltd to sell
the Corporation and the remaining development assets held in the
Corporation. If the completion of the transaction is unsuccessful and
the Corporation is unable to find another entity to fund operations,
the Corporation would be considered insolvent.
The Company reports its financial position, results of operations and
cash flows in accordance with IFRS.
About Run of River Power Inc.
ROR 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 operates an Eco Logo© certified
hydroelectric power generation station at Brandywine Creek, near
Whistler, BC that provides green power for about 4,000 homes.
Disclaimer Regarding Forward Looking Information
Certain information included in this press release constitutes
forward-looking information under applicable securities legislation.
Forward-looking information typically contains statements with words
such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", "project" or similar words suggesting future
outcomes or statements regarding an outlook, or statements that certain
events or conditions "may" occur. Forward-looking information in this
press release includes, but is not limited to, statements regarding the
expectations of management of ROR regarding: (i) the Transaction; (ii)
completion of the Transaction; (iii) entry into the Payment Indenture;
(iv) the intended results of the Transaction; (v) the conditions to
completion of the Transaction; (vi) the calculation of and timing for
payment of the ROR Consideration to the Shareholders; (vii) the
Shareholders' meeting in connection with the Transaction; (viii)
receipt of a fairness opinion and valuation in connection with the
Transaction; (ix) the preparation and delivery of an information
circular in connection with a Shareholders meeting to consider the
Transaction; and * the proposed de-listing of the ROR Shares and the
proposed ceasing to be a reporting issuer of ROR.
Although ROR believes that the expectations reflected in the
forward-looking information are reasonable, undue reliance should not
be placed on forward-looking information because ROR can give no
assurance that such expectations will prove to be correct. Such
forward-looking statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements including, without
limitation, the risks that: (1) the Transaction may not be completed
for any reason whatsoever, including that the requisite Shareholder,
court and/or regulatory approval of the Transaction may not be obtained
or that AcquireCo and/or the REC Acquirer may not have the necessary
funds to make the Advance and the REC Purchase Price available to ROR;
(2) an Payment Indenture may never be entered into for any reason
whatsoever; (3) the Transaction, if completed, may not have the
intended effect as set out in this news release; (4) the aggregate
amount of the ROR liabilities to be deducted from the Available Funds
may be significant, and the resulting ROR Consideration, if any, may be
nominal; (5) the meeting of Shareholders to consider the Transaction
may not occur; (6) a fairness opinion and/or valuation may not be
obtained, or if obtained, may not provide a favourable opinion as to
the fairness or value of the Transaction; (7) the information circular
and other materials for the meeting of Shareholders may not be prepared
or delivered to Shareholders as expected; (8) the ROR Shares may not be
de-listed and ROR may not cease to be a reporting issuer following
closing for any reason whatsoever, and (9) such other risks and
uncertainties beyond the control of ROR.
Readers are cautioned that the foregoing list is not exhaustive of all
factors and assumptions which have been used. The forward-looking
information contained in this press release is made as of the date
hereof and ROR undertakes no obligation to update publicly or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward looking information contained in this
press release is expressly qualified by this cautionary statement.
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