Source: Polaris Infrastructure Inc.

Ram Power Announces 2013 First Quarter Results

RENO, NV--(Marketwired - May 15, 2013) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce its operating results for the first quarter ended March 31, 2013. This earnings release should be read in conjunction with Ram Power's financial statements, and management's discussion and analysis ("MD&A"), which are available on the Company's website at and have been posted on SEDAR at


The achievement of commercial operation of the Phase II expansion at San Jacinto in December 2012 generated strong year-over-year revenue growth for the Company of $11.9 million for the three months ended March 31, 2013 compared to $6.3 million for the same period in 2012, an 88% increase. Adjusted EBITDA, as defined below, increased 191% to $7.2 million for the three months ended March 31, 2013 compared to $2.5 million for the three months ended March 31, 2012.

Significant accomplishments in the first quarter ended March 31, 2013 included:

  • Completion of performance certification tests on the Phase II facility to verify that the plant meets its minimum generation capacity;
  • Successful close of a Cdn.$50.9 million Senior Debenture Private Placement maturing March 27, 2018 which immediately provided increased cash flow through reduced annual interest rate and fee expenses from 16% to 8.5% compared to the Company's previously existing $50 million corporate credit facility; and
  • Completion of the reorganization of the administrative offices in Reno, Nevada during the first quarter of 2013, which is expected to result in savings of $3 million in 2013 and $4 million annually thereafter.


The financial results of Ram Power for the quarter ended March 31, 2013 and 2012 are summarized below:

  For the three months ended  
(all figures in U.S dollars) March 31, 2013     March 31, 2012  
Total revenue $ 11,898,730     $ 6,342,852  
Other direct costs   (1,247,556 )     (794,705 )
Depreciation and amortization of plant assets   (6,133,362 )     (3,118,576 )
Gross profit   4,517,812       2,429,571  
General and administrative expenses   (2,876,823 )     (2,987,853 )
Operating loss   1,724,147       (558,282 )
Gain on warrant liability valuation   1,303,893       (124,309 )
Other loss   (749,450 )     678,752  
Total loss and comprehensive loss   (7,928,341 )     (2,374,375 )
Total loss and comprehensive loss per share $ (0.03 )   $ (0.01 )
  As at March 31, 2013     As at December 31, 2012  
Total assets $ 505,840,609     $ 506,823,848  
Long-term debt   254,499,034       210,591,894  
Total liabilities   299,955,027       294,542,373  
Cash   42,775,592       51,330,351  
Working capital   23,925,425       (11,325,167 )

For the fiscal quarter ended March 31, 2013, the Company reported revenue of $11.9 million and a total loss and comprehensive loss of $7.9 million, or $(0.03) per share, compared to revenue of $6.3 million and a total loss and comprehensive loss of $2.4 million, or $(0.01) per share, for the same period in 2012. The 88% increase in revenue resulted from commencement of San Jacinto Phase II operations in December 2012 and a 17% tariff increase effective October 2012.

Adjusted EBITDA, as defined below, increased $4.7 million to $7.2 million for the quarter ended March 31, 2013 compared to $2.5 million for the quarter ended March 31, 2012, which was primarily the result of $5.5 million increase in revenue from San Jacinto operations and $0.5 million increase in other direct costs.

For the quarter ended March 31, 2013, the Company had net operating cash inflows of $0.1 million, net investing cash outflows of $2.9 million and net financing cash outflows of $5.8 million, which combined for a net decrease in cash of $8.6 million. The Company expended $5.8 million for additions to property, plant and equipment and geothermal properties, including $5.1 million for Phase I and Phase II San Jacinto expansions. At March 31, 2013, the Company had cash of $42.8 million, of which $38.7 million was held for current use in the Phase I and Phase II San Jacinto expansions.



On May 1, 2013, the Company received formal notification terminating the 26 MW PPA from the Northern California Power Agency ("NCPA") for failure to meet certain development milestones. However, the Company continues to have dialogue with the NCPA while negotiating with a potential future buyer and a potential future partner to develop the project.


In February 2013, Cerro Colorado Power, S.A., a subsidiary of the Company, was awarded the exploitation concession for a period of 25 years and commenced negotiations for a formal contract and power purchase agreement. Cerro Colorado Power, S.A. is currently in the process of negotiating with the Nicaraguan Ministry of Energy and Mines ("MEM") and expects to enter into formal agreements over the next 3 months. In addition, the Company on May 2, 2013 has executed an agreement with PAF Securities, LLC ("PAF"), an affiliate of Pan American Finance, LLC, pursuant to which PAF shall serve as exclusive financial advisor to the Company in connection with one or a series of transactions pursuant to which the Company intends to raise approximately US$80 million in senior debt, mezzanine, and equity financing to drill and develop the initial phase of the Casita project.

"We continue to see strong operating results out of the San Jacinto Project," stated Antony Mitchell, Executive Chairman for Ram Power. "With a focus on converting the Phase II Construction Loan to a term loan in the second quarter, we will then shift our efforts attention to the successful remediation efforts drilling plan at San Jacinto, and the further development of our Casita project located in northwest Nicaragua Nicaraguan projects and the monetization of our Geysers Project assets in Northern California." 


Advance Notice Policy

The board of directors of the Company (the "Board") has adopted an advance notice policy (the "Advance Notice Policy"), the purpose of which is to require advance notice to the Company in circumstances where nominations of persons for election to the Board are made by shareholders of the Company (the "Shareholders"). The Board has proposed amendments to the Company's articles (the "Advance Notice Amendment") to include advance notice provisions in the articles that would mirror and replace the Advance Notice Policy. The Advance Notice Amendment will be considered by the Shareholders at the upcoming annual general and special meeting of Shareholders (the "Meeting") to be held on June 18, 2013. If the Advance Notice Amendment is not confirmed at the Meeting by resolution of Shareholders, the Advance Notice Policy will terminate and be of no further force and effect following the termination of the Meeting. The Advanced Notice Amendment is set out in Appendix "C" of the Management Information Circular of the Company dated May 10, 2013, which is available on SEDAR at and the Company's website at

Majority Voting Policy

The Board has also adopted a majority voting policy for the election of directors in uncontested elections. If any nominee for director receives a greater number of votes "withheld" from his or her election than votes "for" such election, the majority voting policy requires that such director promptly tenders his or her resignation to the Board following the meeting, to be effective upon acceptance by the Board. In such a case, the Nominating and Governance Committee will review the circumstances of the election and make a recommendation to the Board as to whether or not to accept the tendered resignation. Any director who has tendered his or her resignation may not participate in the deliberations of the Nominating and Governance Committee or the Board. The Board must determine whether or not to accept the tendered resignation as soon as reasonably possible and in any event within 90 days of the election and announce its decision through a press release. A copy of the majority voting policy is available on the Company's website at

Ram Power will hold its earnings call to discuss the quarter ending March 31, 2013 financial and operating results on Thursday, May 16, 2013 at 10:00 am EDT (7:00 am PDT). To listen to the call, please dial 1-866-696-5910 by entering the participant pass code 9816348, or on the web at

About Ram Power, Corp.

Ram Power is a renewable energy company engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America. 


Certain non-GAAP measures referenced in this news release have no standardized meaning under International Financial Reporting Standards ("IFRS") and, therefore, are unlikely to be comparable to similar measures presented by other issuers. Where we reference non-GAAP measures, we provide definitions. For example, EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. EBITDA is most directly comparable to the GAAP measure operating income or loss, except that depreciation and amortization of plant assets are included and other gains and losses are excluded in measuring operating income or loss, but depreciation and amortization expenses are excluded and other gains and losses are included in measuring EBITDA. Accordingly, where EBITDA measures are disclosed by the Company, they equal operating income or loss plus depreciation and amortization of plant assets and other gains, less other losses. Although a non-GAAP measure, management believes users of the Company's financial information find EBITDA and EBITDA adjusted to exclude non-cash stock compensation expense and credits, and warrant liability gains and losses ("Adjusted EBITDA") useful in assessing the Company's financial performance. In the Company's earnings releases, consolidated financial statements and MD&As, unless otherwise noted, all financial data is prepared in accordance with IFRS. 

Cautionary Statements 

This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenue, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this news release, including such forward-looking information, is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power assumes no obligation to update or revise such information to reflect new events or circumstances.

Contact Information:

Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711