VANCOUVER, April 30, 2013 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the year ended December 31, 2012. 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.
Management objectives in 2012 were to continue to reduce General and Administration ("G&A") costs of the Company and maximize shareholder value through the Skookum Creek Power Project (the "Project"). The Company is pleased to provide the following highlights:
- The Company succeeded in reducing G&A by $899,666 to $1,252,169, or 42% lower than the total of $2,151,835 during 2011.
- Run of River Power Inc. and Concord Green Energy Inc. entered into an equity financing transaction for the Project. ROR Power will continue to provide management services for the Project for a fee based on the Project's post-debt service cash flows. In addition, the Corporation has retained a royalty interest which will pay it 10% of the Project's gross revenues. ROR Power has an option to convert its royalty interest into a 50% equity interest after the fifth anniversary of the commercial operation date of the project.
- On July 6, 2012, the Company completed a private placement of $3.65 million in subordinated secured debentures bearing interest at 12%.
"ROR is very pleased to report that the Company continues to meet its objectives to enhance shareholder value through continued cost reduction efforts and the realization of the 25 MW Skookum Creek Project," stated Richard Hopp, ROR Power's President and CEO. "We have made significant progress on all phases of the Project including both equity and debt financing and advancing Project construction. The Project is on budget and on schedule for completion in the first quarter 2014 as planned."
|Period ended December 31||3 months||12 months|
|($000's except per share & generation amounts)||2012||2011||2012||2011|
|Basic and diluted loss per share||(0.00)||(0.01)||(0.02)||(0.03)|
|(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.|
2012 electricity sales of $1,936,444 decreased $153,781 or 7.4% from 2011 sales of $2,090,225 as a direct result of a decrease in electricity generated from 35,281 MWh to 32,314 MWh. Electricity production was down due to hydrology conditions and reduced output from one of the generating units at the plant, which is scheduled for replacement in Q2 2013.
The Corporation recorded a loss for 2012 of $2,301,191 compared to a loss of $2,717,177 for 2011. The decrease in the net loss, despite a reduction in revenue from the Brandywine facility, is due primarily to a reduction in G&A expense during the year. The Company also recognized the portion earned of the development fee received for the construction of the Skookum Project.
Funds used in operations were $179,921 in 2012 compared to $280,193 for 2011. This improvement of $100,272 was due principally to reduced Corporate G&A and receipt of a development fee for the Skookum Project.
At December 31, 2012, the Company had $2.5 million in cash on hand. These cash resources will be used to carry out further development of the Company's development prospects.
The Company will need to raise capital to support its administrative obligations, pursue development of its other early stage projects as well as for the redemption of the 10% convertible debentures should they not be converted into shares of the Corporation and for the redemption of the secured subordinated debentures which come due in July 2013.
The Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS").
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 390 MW.
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:
Richard W. Hopp
President and CEO