Run of River Power Reports Results For 2009
VANCOUVER, April 30, 2010 /CNW/ - Run of River Power Inc. ("ROR" or "the Company") (TSX-V: ROR) today announced financial and operating results for the year ended December 31, 2009. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed to SEDAR and posted on ROR's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.
Financial Summary
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Period ended December 31 3 months 12 months
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($000's except per share & generation
amounts) 2009 2008 2009 2008
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Electricity sales 274 431 1,371 1,681
EBITDA(1) (381) (187) (857) (814)
Net loss (594) (511) (2,075) (2,021)
Basic and diluted loss per share (0.01) (0.01) (0.03) (0.03)
Cash flow used in operations (477) (346) (1,400) (1,406)
Total assets 33,235 32,422 33,235 32,422
Generation (MWh) 4,713 7,459 23,566 29,074
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(1) EBITDA is earnings before interest, taxes, depreciation and
amortization. It 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
During 2009, ROR's electricity sales of $1,370,869 decreased by $310,590 or 18.5% from 2008 sales of $1,681,459 as a direct result of a reduction in electricity generated to 23,566 MWh from 29,074 MWh. The Company generated electricity revenue of $274,177 in the fourth quarter of 2009, compared to $431,363 in the same quarter of 2008. The decrease in electricity generation and sales for both the year and the quarter are attributable to decreased production at the Brandywine Creek power facility, predominantly due to less than expected precipitation during the year.
On October 31, 2009, an outage at a BC Hydro substation led to an outage at the Brandywine facility that resulted in damage to one of its two generators. The damaged generator is expected to be back in service in late May 2010. There was no significant impact on revenue in the year as a result of this outage because seasonal water flows at Brandywine Creek in the last two months of the year can typically be captured by one generator during that period. The Company's insurers have assessed the facility and repairs and business interruption are expected to be covered by insurance, subject to associated deductibles.
EBITDA for 2009 was negative $857,149, or $43,102 less than the same period in 2008. EBITDA for the fourth quarter of 2009 was negative $380,987 compared to EBITDA of negative $186,845 for the same period last year.
ROR recorded a net loss of $2.1 million for 2009, compared to a net loss of $2.0 million for 2008. The Company recorded a net loss of $593,846 for the fourth quarter of 2009, compared to a net loss of $511,479 in 2008. Funds used in operations totaled $1.4 million for each year ended December 31, 2009 and 2008.
Financial Position
ROR spent approximately $2.0 million during the year on development initiatives divided equally between its run of river projects and its biomass projects. These expenditures were funded from internal resources. In the latter part of the year, the Company completed two private placements for net aggregate proceeds of $3.3 million.
Subsequent to fiscal year end, BC Hydro selected ROR for an award of an Electricity Purchase Agreement for the 25 MW Mamquam Power Project located on Skookum Creek. Accordingly, the Company has commenced evaluating alternatives for raising the necessary equity capital and project debt totaling approximately $95 million.
Non-GAAP Measures
The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars.
About Run of River Power Inc.
ROR develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects in British Columbia (BC). The Company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR is well positioned for profitable growth through the company's high-quality power generation initiatives. ROR's total development potential, in excess of 740 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016.
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.
For further information: Information Contact: Jako Krushnisky, President and CEO, Tel: (604) 946-9232, [email protected]; Vick Dusik, Chief Financial Officer, Tel: (604) 946-9232, [email protected]
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