TORONTO, ON--(Marketwired - November 07, 2017) - Polaris Infrastructure Inc. (
HIGHLIGHTS
San Jacinto-Tizate Project Highlights
FINANCIAL OVERVIEW
The financial results of Polaris Infrastructure for the three and nine months ended September 30, 2017 and 2016 are summarized below:
Three months ended | Nine months ended | |||
(all $ figures in thousands except income (loss) per share) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 |
Average production | 56.7 MW (net) | 54.6 MW (net) | 55.4 MW (net) | 49.8 MW (net) |
Total revenue | $ 15,266 | $ 14,260 | $ 44,547 | $ 38,965 |
Adjusted EBITDA (1) | 12,910 | 11,961 | 37,384 | 32,178 |
Finance costs | (4,356) | (6,201) | (13,006) | (14,687) |
Total earnings (loss) attributable to Owners of the Company | 890 | (1,642) | 911 | (6,017) |
Total earnings (loss) per share (basic and diluted) attributable to Owners of the Company | $0.06 | ($0.10) | $0.06 | ($0.39) |
As at September 30, 2017 |
As at December 31, 2016 |
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Total assets | $ 407,872 | $ 409,248 | ||
Long-term debt | 158,851 | 166,238 | ||
Total liabilities | 219,366 | 214,590 | ||
Cash | 40,887 | 45,739 | ||
Working capital | 33,203 | 43,921 | ||
(1) Refer to Use of Non-GAAP Measures section for further details with respect to calculation of Adjusted EBITDA. |
For the three months ended September 30, 2017, the Company reported revenue of $15.3 million and Adjusted EBITDA of $12.9 million, compared to revenue of $14.3 million and Adjusted EBITDA of $12.0 million, for the same period in 2016. The increase in revenue resulted from the 3% annual tariff increase combined with a 4% increase in average power generation at the San Jacinto project. The improvement in Adjusted EBITDA reflects increased contribution from the San Jacinto plant, combined with continued focus on cost control. See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total loss and comprehensive loss.
For the nine months ended September 30, 2017, the Company reported revenue of $44.5 million and Adjusted EBITDA of $37.4 million, compared to revenue of $39.0 million and Adjusted EBITDA of $32.2 million, for the same period in 2016. The increase in revenue resulted from the 3% annual tariff increase combined with an 11% increase in average power generation at the San Jacinto project. The improvement in Adjusted EBITDA reflects increased revenue from the San Jacinto plant with minimal accompanying cost increases. See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total loss and comprehensive loss.
For the nine months ended September 30, 2017, the Company had net operating cash inflows of $25.8 million, net investing cash outflows of $17.5 million and net financing cash outflows of $13.2 million. At September 30, 2017, the Company had a cash balance of $40.9 million, of which $25.1 million was held for current use in the San Jacinto project.
"We are pleased with our achievements during the third quarter of 2017," noted Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. "The San Jacinto steamfield continues to deliver consistent generation and validates our strategy to expand the size of the resource and capitalize on the operating leverage we maintain. To that end, our 2017 drilling program appears to be yielding strong results and we look forward to providing further updates in the weeks ahead, as wells are assessed and then flow-tested."
Polaris Infrastructure will hold its earnings call to discuss financial and operating results for the quarter ended September 30, 2017 on Wednesday, November 8, 2017 at 10:00 am EST. |
To listen to the call, please dial +1 (647) 427-2311 or +1 (866) 521-4909. |
A digital recording of the earnings call will be available for replay two hours after conclusion of the call, until November 15, 2017. Please dial +1 (416) 621-4642 or +1 (800) 585-8367; Conference ID: 85394674. |
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.
USE OF NON-GAAP MEASURES
Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures. Where non-GAAP measures or terms are used, definitions are provided. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.
EBITDA is a non-GAAP metric used by many investors to compare companies on the basis of ability to generate cash from operations. The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, other gains and losses, impairment loss, depreciation and amortization of plant assets, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and are not factors used by management for evaluating the performance of the Company. The Company believes the presentation of this measure will enhance an investor's understanding of its operating performance. Adjusted EBITDA is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with GAAP. The table below reconciles between Adjusted EBITDA and Net income (loss) and comprehensive Income (loss), calculated in accordance with IFRS.
Three months ended | Nine months ended | ||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||
Total earnings (loss) attributable to Owners of the Company | $ 890 | $ (1,642 | ) | $ 911 | $ (6,017 | ) | |||
Add (deduct): | |||||||||
Net loss attributable to non-controlling interest | (16 | ) | (12 | ) | (1 | ) | (48 | ) | |
Income tax (expense) recovery | 2,050 | 2,100 | 6,230 | 5,696 | |||||
Finance costs | 4,356 | 6,201 | 13,006 | 14,687 | |||||
Interest income | (178 | ) | (51 | ) | (417 | ) | (219 | ) | |
Other losses | 257 | 303 | 491 | 469 | |||||
Depreciation and amortization of plant assets | 5,443 | 4,865 | 16,240 | 16,807 | |||||
Share-based compensation | 108 | 197 | 924 | 803 | |||||
Adjusted EBITDA | $ 12,910 | $ 11,961 | $ 37,384 | $ 32,178 |
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; the ability of the Company to continue as a going concern and general economic conditions, 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, Polaris Infrastructure assumes no obligation to update or revise such information to reflect new events or circumstances.
Contact Information:
Investor Relations
Polaris Infrastructure Inc.
Phone: +1 416-849-2587
Email: info@polarisinfrastructure.com