TORONTO, March 27, 2012 /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 and year ended December 31, 2011.
Operational Highlights (all dollar amounts in millions except per share information)
- The Company's operating assets performed as expected during 2011, producing approximately 114.1 gigawatt hours ("GWhs") of electricity from January to December, 2011, which represents 99.3% of the 2010 comparable period.
||12 Months Ended December 31 - GWhs produced|
|Total Generation (GWhs)||114.1||114.9||91.3|
- In November 2011, the Company introduced an annual $0.04 cash dividend, payable quarterly.
- In December 2011, the Company completed construction of the first of the wind turbines at its Amherst I 31.5 MW wind farm project in Nova Scotia. Construction of all 15 of the turbines has since been completed and commissioning has commenced. Management anticipates having 10 of the 15 turbines commissioned by the end of March, 2012, with the remainder being commissioned in April, 2012. The Amherst I project is expected to generate almost 100 GWhs of electricity annually, doubling the Company's annual gross production to approximately 215 GWhs.
- In December, 2011, the Company completed the refinancing of the term debt on its Ontario operating assets extending the maturity to December 2016. In addition, the Company secured an additional $2.7 of financing that was utilized to repay $1.6 of the Company's vendor take-back debt and for working capital.
- Subsequent to December 31, 2011, the Company completed its first offering as a public company on March 6, 2012. The short form prospectus offering of units generated gross proceeds of approximately $22.8.
Financial Summary (all dollar amounts in millions except per share information)
- Revenue for the three months and year ended December 31, 2011 was $3.5 and $9.6, respectively. Had the Company consolidated the revenue from the acquired companies from January 1, 2011, revenue for the year ended December 31, 2011 would have been approximately $10.8 (Q1 - $3.2; Q2 - $2.5; Q3 - $1.6; Q4 - $3.5). The Company's quarterly revenue trend reflects the expected seasonality of wind resources.
- Earnings before interest, income taxes, depreciation and amortization, and acquisition gain and expenses ("EBITDA"4) for the three and twelve months ended December 31, 2011 were $1.7 and $3.8 respectively.
- The net income attributable to the shareholders for the fourth quarter was $0.4, or $0.008 per share. Net loss attributable to the shareholders for the twelve months ended December 31, 2011 was $1.9, or $0.042 per share. Included in annual loss per share calculations is the non-cash loss on assets classified as held for sale of $0.5 or $0.012 per share for the twelve months ended December 31, 2011.
- The net source of cash from operations prior to changes in working capital for the three and twelve months ended December 31, 2011 were $1.0 and $0.8, respectively.
- As at December 31, 2011, the Company had working capital of $10.2 including $8.5 in cash. As at December 31, 2011, total assets were $177.9 including cash and short and long-term restricted cash of $26.8.
- As at December 31, 2011, long-term debt, including the Amherst construction loan, was $87.9 and total equity before non-controlling interest was $52.1 ($1.095 per share on a non diluted basis).
"The past year has been exciting and transformative for Sprott Power. We successfully completed two significant transactions which resulted in Sprott Power becoming public with a portfolio of operating and development assets which we expect to advance to commercial operations," said Jeff Jenner, CEO of Sprott Power. "In addition we successfully refinanced our Ontario wind assets and advanced construction on our Amherst I wind farm project. These steps, plus the success of our recent public offering, underline the support we have from our partners and shareholders. We will continue to make attractive and accretive investments in the North American renewable power sector, aiming to build a portfolio of 500MW of operating assets by 2015."
The Company's full audited consolidated financial statements and Management's Discussion and Analysis for the quarter and year ended December 31, 2011, can be found at www.sedar.com or the Company's website at www.sprottpower.com.
Non-IFRS Financial Measures
This press release includes financial terms (including EBITDA and equity per share) 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.
About Sprott Power Corp.
Sprott Power is a publicly-traded (TSX: SPZ) Canadian-based company dedicated to the development, owning and operating 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, such as expected amounts of future electricity generation, among others, 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 and Uncertainties" in the Annual Information Form of the Company dated March 26, 2012. 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||GWhs shown are for a full year and include results prior to acquisition by the Company.|
|2||Projects previously owned by SkyGen prior to February 8, 2011. At the end of 2009 the SkyGen Proof Line site was commissioned providing an additional 6.6 MWs in name plate capacity starting in 2010.|
|3||Projects previously owned by Confederation Power Inc. prior to February 1, 2011.|
|4||This release includes financial terms (including EBITDA and total equity per share) 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.|
EBITDA calculated as follows from interim and annual financial statements:
|Three months ended December 31, 2011||Year ended December 31, 2011|
|Profit from operating activities||$ 798,440||$ 662,211|
Facility operating costs - depreciation and amortization
|Corporate and administrative costs - depreciation and amortization||1,595||19,237|
|5||Equity per share calculated as follows from annual financial statements: Total equity divided by common shares outstanding (non-diluted) = $52,139,919/47,952,220|
For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Sprott Power Corp.
The Equicom Group
416-815-0700 ext. 264