Continued significant renewable energy production increases resulting in
operating revenue growth of 71% for the quarter
EBITDA from assets under management increases 320% for the quarter
TORONTO, May 15, 2013 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott
Power" or "the Company"), an owner, operator and developer of renewable
energy projects, today announced its results for the three months ended
March 31, 2013.
"It has been an exciting quarter for Sprott Power. Over the past two
years, Sprott Power has focused its efforts on a number of value
creation initiatives that, through their completion, are now
contributing to the growth evident in Sprott Power revenues and EBITDA
from assets under management," said Jeff Jenner, CEO of Sprott Power.
"These initiatives include the completion of the Amherst I Project in
2012 which helped grow revenue for the quarter ended March 31, 2013 to
$6.0 million. We also completed the acquisition of Glen Dhu and
Fitzpatrick Mountain in late 2012. The impact of Glen Dhu and
Fitzpatrick Mountain and Amherst helped grow EBITDA from assets under
management for the quarter ended March 31, 2013 to $8.4 million. We
look forward to announcing the results of our strategic review and
continuing to execute on our growth plans in 2013."
Operational and Growth Highlights
As at March 31, 2013, the Company partially or wholly owned ten
operating wind power facilities with an aggregate installed capacity of
143.2 MWs. These consist of three facilities in Ontario with an
aggregate installed capacity of 21.6 MWs and seven facilities in Nova
Scotia with an aggregate installed capacity of 121.6 MWs. Each of
these facilities sells its electricity under long-term power purchase
agreements ("PPAs") that expire between 2020 and 2037 with a weighted
average life of 17 years remaining on the contracts.
The Company's operating assets performed as expected, producing
approximately 118.1 gigawatt hours ("GWhs") of electricity during the
quarter ended March 31, 2013, which represents approximately 126% of
the 2012 comparable period.
3 Months Ended March 31 -
Gross GWhs produced
Total Generation (GWhs)
(1) GWhs shown includes certain Nova Scotia projects previously owned by
Shear Wind Inc. prior to November 23, 2012.
(2) GWhs shown represent quarterly production results for acquired
assets prior to the acquisition by the Company. The 2012 production
numbers do not include production from Amherst and from Glace Bay II as
both these assets were constructed later in the year.
During the quarter, the Company continued to advance contracted wind
power development projects representing 77.5 MW of capacity that are
subject to letters of intent and/or security agreements. The Company,
along with a financial partner, continues to move forward to acquiring
these projects, subject to customary terms and due diligence, including
any required consent from the Ontario Power Authority ("OPA") and the
approval of the board of directors of the Company (the "Board").
During the quarter ended March 31, 2013, the Company announced that the
Board had initiated a process to identify, examine and consider a range
of strategic options available to the Company with a view to finding
additional capital to fund its growth and enhancing shareholder value,
including a possible sale of the Company (the "Strategic Review").
During the quarter ended March 31, 2013, the Company announced that it
has decided to transition to internal management by way of a notice of
termination, effective July 31, 2013, of its Management Services
Agreement ("MSA") with Sprott Power Consulting LP ("SPCLP"), the
outsourced management firm on which it has been relying for management
services. The Company developed and began implementing a detailed
transition plan to ensure the smooth transition of operations upon the
termination of the MSA. In conjunction with the transition plan, the
Company has retained additional resources to assist with and manage the
Upon the termination of the MSA, the Company is to pay to SPCLP $8.5
million (the "Termination Fee") for amounts owing by the Company under
the MSA. The Termination Fee will be paid by cash or the issuance of
Shares. In the event of a sale of the Company, the Company is to
satisfy the Termination Fee concurrently with the completion of the
sale in cash or Shares depending upon the purchase consideration.
Approximately 40% of the Termination Fee will be paid to the Company's
Revenue from energy sales for the three months ended March 31, 2013 was
$6.0 million, as compared to $3.5 million, an increase of $2.5 million
or 71% from the same period of 2012. Gross Revenue1 from assets under management for the quarter ended March 31, 2013 was
$11.8 million, including $5.8 million as a result amounts generated
from Glen Dhu and Fitzpatrick Mountain, which are accounted for using
Earnings before interest, income taxes, depreciation and amortization
("EBITDA"1) from assets under management for the three months ended March 31, 2013
was $8.4 million as compared to $2.0 million, a net increase of $6.4
million or 320% as compared to in the same period of 2012. EBITDA from
assets under management includes $4.8 million generated from Glen Dhu
and Fitzpatrick Mountain, which are accounted for using equity
The net loss attributable to the shareholders for the three months ended
March 31, 2013 was $10.8 million or $0.159 per share, as compared to a
loss of $0.04 million or $0.001 per share in the same period of 2012.
The net loss in 2013 was primarily the result of expenses totaling
$10.8 million related to the termination of the MSA and the ongoing
The net increase in cash from operations before changes in working
capital for the three months ended March 31, 2013 was $0.3 million as
compared to $1.3 million in the same period of 2012.
At March 31, 2013, the Company had working capital of $4.3 million
including $13.8 million in cash and $8.7 million in restricted cash as
compared to working capital of $17.7 million, including $17.5 million
in cash and $9.8 in restricted cash, as at December 31, 2012.
At March 31, 2013 the Company had total assets of $232.4 million as
compared to $236.8 million as at December 31, 2012. At March 31, 2013
the Company had long-term debt of $129.2 million as compared to $129.9
million as at December 31, 2012.
The Company's unaudited consolidated financial statements and
Management's Discussion and Analysis for the quarter ended March 31,
2013, can be found at www.sedar.com or the Company's website at www.sprottpower.com.
About Sprott Power Corp.
Sprott Power is a publicly-traded (TSX: SPZ) Canadian-based company
dedicated to the development, ownership and operation 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 reflects Sprott Power's current
beliefs with respect to future events and is 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 Factors" in the Company's Revised Annual
Information Form dated April 2, 2013. 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 Gross Revenue and EBITDA from assets under management are terms 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. See the calculations included in the March
31, 2013 Management's Discussion and Analysis of Financial Results for
a discussion of these calculations.
SOURCE: Sprott Power Corp.
For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Sprott Power Corp.
(416) 815 0700 ext. 238