Press release from CNW Group
Sprott Power Corp. Announces 2011 Third Quarter Results
Friday, November 11, 2011
TORONTO, Nov. 11, 2011 /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 nine months ended September 30, 2011.
- On August 16, 2011, the Company announced that its subsidiary, SP Amherst Wind Power LP, had closed its $45.0 million non-recourse, construction and take-out debt financing for its 31.5 MW Amherst, Nova Scotia wind project. With the debt financing completed the project has all the anticipated financing to build out the project. During the three and nine months ended September 30, 2011, the Company incurred approximately $6.8 and $19.6 million in construction and wind turbine acquisition costs with respect to the build out of this wind farm. The Company expects the project to be operational at the end of the first quarter of 2012.
- On September 19, 2011, the Company completed the sale of its non-core hydro assets for gross proceeds of up to $4.8 million including $2.7 million in future payments conditional on the purchaser achieving certain development milestones.
- On October 6, 2011, the Company announced that it had acquired the rights to a 100.0 MW development project near Fort MacLeod, Alberta. With the addition of this project the Company has a total of 448.1 MW in its pipeline including 77.2 MW that is operational and under construction.
- On November 7, 2011 the Company announced the introduction of an annual $0.04 cash dividend, payable quarterly. The Board of Directors declared the first such quarterly cash dividend of $0.01 per share payable on January 16, 2012 to shareholders of record as of the close of business on December 30, 2011.
- Revenue for the three and nine months ended September 30, 2011, was $1.6 million and $6.2 million respectively. Had the Company consolidated the revenue from its acquired companies from January 1, 2011, revenue for the nine months ended September 30, 2011, would have been $7.3 million (Q1 - $3.2; Q2 - $2.5; Q3 - $1.6). The decrease in the revenue run rate was expected due to the naturally reduced wind resources in the calmer summer months.
- Cash used in operations prior to changes in non-cash working capital for the three and nine months ended September 30, 2011, was $0.7 million and $0.2 million respectively.
- Earnings before interest, income taxes, depreciation and amortization, and acquisition gain and expenses ("EBITDA"1) was $0.1 million for the three months ended September 30, 2011, and $2.1 million for the nine months ended September 30, 2011.
- The net loss attributable to the shareholders' for the third quarter was $1.7 million or $0.036 per share and year-to-date was $2.4 million or $0.051 per share. Included in the loss per share calculations is the non-cash loss on assets classified as held for sale of nil and $0.012 per share for in the quarter and year to date respectively.
- At September 30, 2011, the Company had working capital of $3.9 million including $5.9 million in cash and $11.0 million in restricted cash. Current portion of long-term debt includes two tranches of debt on the Company's Ontario assets which is maturing within 12 months. This debt is currently being renegotiated and the Company expects that it will be renewed which would increase the Company's working capital by approximately $7.1 million. Total assets at September 30, 2011, were $147.2 million including cash and short- and long-term restricted cash of $20.8 million; long-term debt was $59.0 million; and total equity before non-controlling interest was $52.2 million ($1.09 per share on a non diluted basis).
"We are happy with the progress on the construction of our Amherst project. Our third quarter production and revenue reflect the reduced wind resources which naturally occur in the calmer summer months as expected," said Jeff Jenner, CEO of Sprott Power. "The purchase of the Alberta development assets adds to our project portfolio and we are actively seeking further opportunities in North America. The sale of our Anyox Creek Hydro Electric Project to the founding partners provides us with $2.1 million in working capital and the best opportunity for the successful development of the projects to realize the additional payments."
The Company's full financial statements and Management's Discussion and Analysis for the quarter ended September 30, 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) 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 future proceeds on sale of assets, 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 and Uncertainties" in the Management Discussion and Analysis of Financial Results dated June 13, 2011. 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) 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.
For further information:
| Jeff Jenner, CA, CBV |
President and Chief Executive Officer
Sprott Power Corp.
| Babak Pedram |
The Equicom Group
416-815-0700 ext. 264