TORONTO, July 24, 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 and six months ended June 30, 2012.
- In April 2012, the commissioning of the Amherst I 31.5 megawatt ("MW") project in Nova Scotia was completed. This project has a 25 year power purchase agreement ("PPA") and on an annual basis is anticipated to generate approximately 100 gigawatt hours ("GWhs") of renewable energy to power approximately 10,000 homes. The Amherst facility contributed 18.6 GWhs in the second quarter.
- Energy production for the second quarter of 2012 was 43.3 GWhs as compared to 26.3 GWhs in 2011, an increase of 17.0 GWhs or 65%. On a year-to-date basis production was 79.8 GWhs, an increase of 31.9 GWhs or 67% as compared to the same period in 2011. The increase includes the impact of the new Amherst I project and the inclusion of a full quarter of production in the first quarter of 2012 versus only two months in the first quarter of 2011.
- During the quarter commenced construction of a 2.3 MW turbine near its existing Lingan Nova Scotia facility which it expects to reach commercial operation by the end of September 2012.
- In early June 2012, the board of directors of the Company (the "Board") declared a quarterly of $0.01325 per share to be paid to on July 16, 2012, to shareholders of record on June 29, 2012. The dividend was a 32% increase over the previous dividend payments.
- Revenue for the three months ended June 30, 2012, was $4.0 million compared to $2.5 million for the same three month period in 2011, an increase of $1.5 or 60%. The increase is attributable to the new Amherst I wind farm, which contributed $1.6 million in revenue during the second quarter. Revenue from other operations was $2.4 million, slightly down from the $2.5 million in the same quarter of 2011. For the six months ended June 30, 2012, revenue was $7.5 million compared to $4.6 million for the same period in 2011, an increase of 65%. The increase includes the Amherst I wind farm and the inclusion of a full first quarter of operations in 2012. On a "same wind farm" basis revenue for the six months ended June 30, 2012, increased by approximately 3%.
- Earnings before interest, income taxes, depreciation and amortization, and acquisition gain and expenses ("EBITDA"1) was $1.9 million and $3.9 million for the three and six months ended June 30, 2012, respectively. EBITDA for both the three and six months ended June 30, 2012, has almost doubled compared to 2011 due to the new Amherst I project and the inclusion of a full quarter of operating results in the first quarter of 2012.
- The net loss attributable to the shareholders was $0.016 and $0.014 for the three and six months ended June 30, 2012, as compared to $0.021 and $0.014 in the same periods in 2011.
- Cash from operations prior to changes in working capital for the three months ended June 30, 2012, was $0.8 million compared to $0.3 million for the three months ended June 30, 2011. On a year-to-date basis cash from operations was $2.1 million compared to $0.4 million for the six months ended June 30, 2011.
- As at June 30, 2012, the Company had working capital of $24.9 million including $20.9 million in cash.
"We are pleased to announce another fiscal quarter of more than 60% growth in revenues, EBITDA and cash flows," said Jeff Jenner, Chief Executive Officer of Sprott Power. "Our new Amherst project performed well and the other assets showed only a small reduction in expected production in the quarter even with the early onset of warm weather resulting in lower than normal wind resources."
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
June 30, 2012
| Three months ended
June 30, 2011
| Six months ended
June 30, 2012
| Six months ended
June 30, 2011
|Profit from operating activities||$ 466,575||$ 148,640||$ 1,512,381||$ 690,972|
|Add: Depreciation and amortization|
|Less: Other income||(253,776)||(254,110)||(507,552)||(444,768)|
|EBITDA||$ 1,948,993||$ 1,020,645||$ 3,897,776||$2,022,905|
SOURCE: Sprott Power Corp.
For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Sprott Power Corp.
The Equicom Group
416-815-0700 ext. 264