TORONTO, May 7, 2012 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott Power" or "the Company") an owner, operator and developer of renewable energy projects, today announced its financial and operational results for the three months ended March 31, 2012.
- The Company had its most productive fiscal quarter since inception, producing 36.6 gigawatt hours ("GWhs") of renewable energy for residents of Ontario and Nova Scotia. The quarterly production from these assets was almost 10% greater than 2011 production from January 1, 2011 to March 31, 2011 and management's expectations.
- On March 6, 2012, the Company completed a short form prospectus offering of units (the "Offering") for gross proceeds of approximately $22.8 million. The Offering helped increase the Company's cash position to $27.2 million as at March 31, 2012.
- In March, 2012, the first of the fifteen wind turbines at the Company's new Amherst facility began producing power. All fifteen turbines generated power in April and produced 7.5 GWhs during the month. This project was constructed on time and on budget.
- On April 17, 2012, the board of directors of the Company approved an increase in the Company's quarterly dividend to $0.01325 from $0.01 per share. The increase, reflecting the Company's improved cash flow, will be effective with the dividend declaration for the second quarter of 2012. The increase represents a 32.5% increase to an annualized $0.053 cash dividend.
- Revenue for the three months ended March 31, 2012 was $3.5 million compared to $2.1 million in the first quarter of 2011, an increase of $1.4 million or 66%. Approximately $1.1 million of the increase is the result of the inclusion of a full quarter of operations in the period ended March 31, 2012 versus approximately two months in the quarter ended March 31, 2011. On an adjusted basis revenue for the quarter ended March 31, 2012 increased almost 10% compared to the same period in 2011.
- Earnings before interest, income taxes, depreciation and amortization, and acquisition gain and expenses ("EBITDA"1) almost doubled for the three months ended March 31, 2012 to $1.9 million from $1.0 million in the same period in 2011.
- The net loss attributable to the shareholders' for the three months ended March 31, 2012 was less than $0.1 million or $0.001 per share compared to net income attributable to the shareholders' for the three months ended March 31, 2011, of $0.4 million or $0.011 per share. The decrease was primarily due to the recognition of a non cash gain in 2011 as a result of the acquisition of the Confederation Power Inc. assets.
- The net source of cash from operations prior to changes in working capital for the three months ended March 31, 2012 was $1.3 million. At March 31, 2012, the Company had working capital of $26.0 million including $27.2 million in cash. Total assets at March 31, 2012 were $214.6 million including cash and short and long-term restricted cash of $47.1 million, long-term debt was $51.3 million, and total equity before non-controlling interest was $70.8 million ($1.042 per share on a non diluted basis).
"I am extremely pleased with the operational and financial performance of the Company during the past quarter," said Jeff Jenner, Chief Executive Officer of Sprott Power. "With the recent commissioning of the 31.5 MW Amherst facility we look forward to continued growth over last year in both revenue and operating cash flow. Our team continues to advance our portfolio of projects including the additional turbine we are adding to our Glace Bay facility which is anticipated to be completed later this year."
Non-IFRS Financial Measures
This press release includes financial terms (including EBITDA) 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, 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, such as future electricity production, reflects Sprott Power's current beliefs with respect to future events and are 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 Annual Information Form 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 This MD&A 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 is calculated as follows from interim condensed financial statements:
|Three months ended March 31, 2012||Three months ended March 31, 2011|
|Profit from operating activities||$ 1,045,807||$ 542,332|
Facility operating costs - depreciation and amortization
|Corporate and administrative costs - depreciation and amortization||7,320||4,533|
2 Equity per share calculated as follows from annual financial statements: Total equity divided by common shares outstanding (non-diluted) = $70,835,452/68,204,970
For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Sprott Power Corp.
The Equicom Group
416-815-0700 ext. 264