Run of River Power Reports Second Quarter Results
VANCOUVER, Aug. 26, 2010 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the second quarter ended June 30, 2010. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed on SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.
Highlights
- On May 6, 2010, BC Hydro and ROR Power signed an Electricity Purchase
Agreement ("EPA") for the 25 MW Mamquam Power Project.
- On July 15, 2010, the Company registered the 34 MW Tsilhqot'in Power
Project and the 34 MW Suskwa Power Project in BC Hydro's Bioenergy
Phase 2 Call. ROR Power is currently preparing project proposals and
intends to submit them prior to the October 28, 2010, deadline.
Selection of preferred proponents by BC Hydro is currently scheduled
for mid-January 2011, with final approvals and EPA signings expected
in April 2011.
- Repairs to the generator at the Company's Brandywine facility were
completed in early May. The facility has been fully operational since
that time.
Financial Summary
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($ in thousands, except Three Months Ended Six Months Ended
per share amounts) June 30 June 30
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2010 2009 2010 2009
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Electricity sales 593 577 772 662
EBITDA(1) (367) (7) (761) (403)
Net loss (733) (317) (1,423) (1,063)
Basic and diluted loss per share (0.01) (0.00) (0.02) (0.02)
Cash flow used in operations (739) (328) (747) (810)
Total assets 32,243 31,176 32,243 31,176
Generation (MWh) 10,121 9,918 13,189 11,389
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(1) EBITDA is earnings before interest, taxes, depreciation and
amortization and 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
Electricity sales during the second quarter of 2010 totaled $592,625, an increase of 3% from the same quarter of 2009. The gain resulted from a 3% increase in electricity generated, to 10,121 MWh.
For the first six months of 2010, electricity sales totaled $772,324, representing an increase of 17% from the same period last year. Year-to-date electricity production increased by 16% to 13,189 MWh. The increase in electricity generation and sales is attributable to increased water flows and performance and reliability improvements at the Brandywine Creek facility.
Net loss for the second quarter totaled $733,353, an increase of $416,062 from the same quarter in 2009. Six-month net loss increased by $359,543 to $1,422,779. The increase in net loss for the quarter and year to date is primarily attributable to severance payments and an increase in stock-based compensation.
Funds used in operations were $738,946 in the second quarter of 2010, compared to $328,118 last year. For the six-month period, the total was $746,610 compared to $810,366 in 2009. The improvement in funds used in operations for the half year is substantially due to the collection of a GST refund received in the first quarter of 2010, which more than offset the increase in G&A and net interest expense.
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 Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects. 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 Power is well positioned for profitable growth through power generation initiatives that include its Mamquam Power Project, selected by BC Hydro for an Electricity Purchase Agreement. ROR Power's total development potential, in excess of 715 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: Vick Dusik, Chief Financial Officer, Tel: 604-946-9232, [email protected]
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