Vancouver, BC – August 25, 2011 – 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, 2011. The consolidated 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.
Highlights
"Our overall strategic focus includes maximizing revenue generation, reducing G&A costs and increasing value for our shareholders,” stated Richard Hopp, ROR Power's President and CEO. “In executing on our core strategies we’ve seen continued performance improvements at Brandywine, streamlined our management team and reduced our G&A costs by $500,000 a year. Overall, I'm really pleased with the progress we've made and look forward to sustained progress as we continue seeking ways in which to increase shareholder value."
Financial Summary
|
($ in thousands, except per share amounts) |
Three Months Ended |
Six Months Ended |
||
|
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
|
|
Electricity sales |
545 |
593 |
697 |
772 |
|
EBITDA(1) |
(285) |
(427) |
(957) |
(958) |
|
Loss |
(836) |
(810) |
(2,027) |
(1,651) |
|
Basic and diluted loss per share |
(0.01) |
(0.01) |
(0.02) |
(0.02) |
|
Cash flow used in operations |
(769) |
(805) |
(1,177) |
(939) |
|
Total assets |
27,036 |
29,383 |
27,036 |
29,383 |
|
Generation (MWh) |
9,202 |
10,120 |
11,765 |
13,189 |
(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.
Operating Results
Q2 2011 electricity sales of $545,157 decreased $47,468, or 8.0%, from 2010 sales of $592,625 as a result of decreased electricity generated to 9,202 MWh from 10,120 MWh. YTD 2011 electricity sales of $696,981 decreased 9.8% from 2010 YTD sales of $772,324. YTD production decreased 10.8% to 11,765 MWh from 13,189 MWh. The decrease in electricity generation and sales is attributable to decreased water flows at the Brandywine Creek facility due to delayed snowpack melt. Record snow pack year to date is expected to result in higher than normal production numbers in the months ahead.
The Corporation’s loss for the second quarter increased $25,450 to $835,861 from $810,411 for the comparable quarter in 2010. YTD loss increased $375,869 to $2,026,611 compared to 2010 YTD loss of $1,650,742. The increase in net loss for the quarter and YTD is due primarily to increased finance costs.
Funds used in operations were $768,732 in the second quarter of 2011 compared to $805,211 for the second quarter of 2010. YTD funds used in operations were $1,176,810 compared to $938,965 for the comparable six month period in 2010. The change in funds used in operations YTD is due primarily to an increased loss in 2011.
Financial Position
During the quarter, the Company raised $3.0 million through equity and convertible debt private placements. On August 22, the Company raised an additional $2.5 million of convertible debt. All funds raised will be used for ongoing development and general corporate purposes.
With the award of an EPA for the Skookum Power Project the Company is currently evaluating alternatives for raising the necessary equity capital and project debt to complete this project.
Non-GAAP Measures
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 operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power 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 in excess of 600 MW represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self-sufficiency by 2016.
Forward-Looking Statements
Certain information regarding the Company set forth in this press release, including management’s assessment of the Company’s future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s and management’s control, including but not limited to, the completion of the private placement, the impact of general economic conditions, industry conditions, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Company’s actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide any benefits to the Company.
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.
Information Contact
Vick Dusik
Chief Financial Officer
Tel: (604) 946-9232
vsdusik@runofriverpower.com
Richard W. Hopp
President and CEO
Tel: 604-946-9232
rhopp@runofriverpower.com