Run of River Power Reports Q3 Results, Appoints New CFO

VANCOUVER, Nov. 24, 2011 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the quarter ended September 30, 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

  • Set quarterly production record at the Brandywine hydro-electric facility - 16,206 MWh compared to previous best quarter of 12,134 MWh set in 2007 - an increase of over 33%

  • Development Plan for the 25 MW Skookum Power Project was deemed complete by the Ministry of Forests, Lands and Natural Resources and formally referred out to the relevant Federal and Provincial agencies and First Nations for review

  • Held a successful public open house for the Skookum Power Project in Squamish, BC

  • Raised $2.5 million of 10% convertible debentures due August 2014

"This quarter, we broke yet another production record at our Brandywine facility, beating the previous best quarterly production record by a wide margin," stated Richard W. Hopp, ROR Power's President and CEO. "Continued performance and reliability enhancements at Brandywine allowed us to fully capitalize on the delayed snowpack melt through the second quarter, resulting in another record-breaking performance.

"The referral of the Development Plan for the Skookum Power Project on August 23 marks another significant milestone for the Company," continued Hopp. "The successful referral is an essential step in obtaining the permits required to begin construction."

Financial Summary

($ in thousands, except per share amounts) Three Months Ended Nine Months Ended
  September 30 September 30
  2011 2010 2011 2010
         
Electricity sales 960 699 1,657 1,471
EBITDA(1) 424 (260) (534) (1,220)
Loss (99) (633) (2,126) (2,284)
Basic and diluted loss per share (0.00) (0.01) (0.02) (0.03)
Cash flow used in operations (663) (822) (1,840) (1,760)
Total assets 27,700 31,348 27,700 31,348
Generation (MWh) 16,206 11,931 27,971 25,120
         

(1)    EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under International Financial Reporting Standards ("IFRS") 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

Q3 2011 electricity sales of $960,133 increased $261,509, or 37.4%, from Q3 2010 sales of $698,624 as a result of increased electricity generated to 16,206 MWh from 11,931 MWh. YTD 2011 electricity sales of $1,657,114 increased 12.7% from 2010 YTD sales of $1,470,948.  YTD production increased to 27,971 MWh from 25,120 MWh. The increase in electricity generation and sales is attributable to sustained water flows through the second quarter and efficiency improvements undertaken at the Brandywine Creek hydroelectric facility.

The Corporation's loss for the third quarter decreased $533,766 to a loss of $99,251 from a loss of $633,017 for the comparable quarter in 2010.  YTD loss decreased $157,897 to $2,125,862 compared to 2010 YTD loss of $2,283,757.  The decrease in net loss for the quarter and YTD is due primarily to improved operating performance at the Brandywine facility and reduced G&A, partially offset by increased interest expense.

Funds used in operations were $663,056 in the third quarter of 2011 compared to $821,853 for the third quarter of 2010. The improvement in funds used in operations for the quarter was due primarily to improved operating results offset by $359,664 invested in net working capital.  YTD funds used in operations were $1,839,866 compared to $1,760,818 for the comparable nine month period in 2010.

Financial Position

On August 22, the Company raised an additional $2.5 million of 10% convertible debentures due August, 2014. 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 is currently 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").

Appointment of New CFO

The Board of Directors is pleased to announce the appointment of Khalid Amlani, CA, as Chief Financial Officer. ROR Power also advises that Vick Dusik, current CFO, will be leaving the Company effective December 31, 2011 to pursue other interests. Mr. Dusik has agreed to act as an advisor to the Board on an ongoing basis.

Mr. Amlani is a Chartered Accountant and brings with him a varied knowledge of finance, accounting, audit, tax and public markets to the Company.

Richard W. Hopp commented, "We are very pleased to have Khalid Amlani on board as our new CFO. The Board, Management, and Staff would like to thank Vick Dusik for his significant contributions over the past four years. Vick has been instrumental in reshaping the Company during some very challenging times and we wish him every success in his future endeavours."

About Run of River Power Inc.

ROR Power 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 Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. The company 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 is approximately 600 MW.

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:

Information Contact

Richard W. Hopp
President and CEO
Tel: 604-946-9232
rhopp@runofriverpower.com

Organization Profile

Run of River Power Inc.

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