Press release from CNW Group
Run of River Power Reports Second Quarter Results
Thursday, August 29, 2013
Run of River Power Reports Second Quarter Results19:00 EDT Thursday, August 29, 2013
VANCOUVER, Aug. 29, 2013 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the quarter ended June 30, 2013. The condensed consolidated interim financial statements and management discussion and analysis will be filed to SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.
"ROR is very pleased to report that the Company continues to meet its objectives to enhance shareholder value through cost reductions, Brandywine performance and operations optimization upgrades and the realization of the 25MW Skookum Creek Power Project," stated Richard Hopp, ROR Power's President and CEO. "We are nearing completion of the Skookum Creek Project and, as planned, will be generating power to the BC Hydro grid by the New Year. Completion of the project will result in significant long term cash flows to ROR and along with our efforts to rebalance our Balance Sheet will put ROR on a solid footing with long term sustainable cash flows. The Company also thanks its shareholders for their persistence and support to get to where we are today", remarked Mr. Hopp.
During the second quarter ended June 30, 2013 revenue increased 9.8% to $734,472 compared with the second quarter of 2012 due mainly to the increased electricity production as a result of the runner upgrade carried out at the Brandywine facility and the reduction in general and administrative costs. After adjusting for net unrealized gains on derivative financial instruments, the net loss for the quarter would have been $329,483 compared to $356,760 for the previous year.
The recognition of net earnings for the three and six month periods ended June 30, 2013, compared with a net loss for the same periods in 2012, is attributable to unrealized gains on derivative financial instruments.
The following table outlines the impact on net earnings (loss) of the unrealized net gain (loss) on derivative financial instruments:
|(In $'s)||Three months||Six months|
|For the periods ended June 30||2013||2012||2013||2012|
|Net income (loss)||3,230,950||(356,760)||2,258,149||(1,539,070)|
| (Subtract) Unrealized gain on
derivative financial instruments
|Adjusted Net Loss||(329,483)||(356,760)||(1,302,284)||(1,539,070)|
|($000's except per share and generation amounts)||Three Months Ended
|Six Months Ended
|Net Income (Loss)||3,231||(357)||2,258||(1,539)|
|Basic and diluted earnings (loss) per share||0.03||(0.01)||0.02||(0.02)|
|Cash flow (used) from in operations||424||361||(171)||(113)|
|(1) EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under
International Financial Reporting Standards ("IFRS") 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.
For the three month period ending June 30, 2013 ("Q2 2013") electricity sales of $734,472 increased $65,394 or 9.8% compared to the three month period ending June 30, 2012 ("Q2 2012") sales of $669,078 as a direct result of increased electricity generated to 12,206 MWh from 11,165 MWh. For the six month period ending June 30, 2013 ("YTD") electricity sales of $859,630 increased $49,396 or 6.1% compared to the six month period ending June 30, 2012 ("2012 YTD") sales of $810,234. YTD production increased 5.7% to 14,286 MWh from 13,521 MWh. The increase in electricity generation and sales is attributable to increased conversion effectiveness as a result of the Brandywine runner upgrade completed in June 2013, using similar hydrology for comparative quarters.
The Corporation recorded net income for the second quarter of $3,230,950 compared to a loss of $356,760 for the comparable quarter in 2012. YTD net income of $2,258,149 increased $3,797,219 from the YTD 2012 loss of $1,539,070. The significant increase in net income is a result of net unrealized gains recorded on derivative financial instruments. The net loss before unrealized gains ("Adjusted Net Loss") for three and six month period ending June 30, 2013 is $329,483 and 1,302,284 respectively.
The Adjusted Net Loss for Q2 2013 decreased 27,277 to $329,483 from Q2 2012 net loss of $356,760. The Company incurred a YTD Adjusted Net Loss of $1,302,284 compared to a net loss of $1,539,070, a decrease of $236,786 or 15.4%. The decreased in the Adjusted Net Loss compared to the YTD 2012 net loss is a result of increased production at the Brandywine Facility and a reduction in G&A.
Funds from operations were $424,103 in the second quarter of 2013 compared to funds used in operations of $361,286 for the second quarter of 2012. YTD funds used in operations were $170,700 compared to $112,642 for the comparable six month period in 2012. The change in funds used in operations for the 2013 quarter and YTD is due primarily to changes in working capital.
At June 30, 2013, the Company had $1.0M in cash on hand. These cash resources will be used to fund operations.
The Company will need to raise capital to support its administrative obligations, pursue development of its other early stage projects as well as for the redemption of the 10% convertible debentures, should they not be converted into shares of the Company and for the redemption of the Amended Debentures which come due in January 2014.
The Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS").
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply. ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. The company is well positioned for profitable growth through power generation initiatives that include its 25 MW Skookum Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential is approximately 390 MW.
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.
SOURCE: Run of River Power Inc.
For further information:
Richard W. Hopp
President and CEO