Vancouver, BC – May 30, 2012 – Run of River Power Inc. (“ROR Power” or “the Company”) (TSX-V: ROR) today announced financial and operating results for the quarter ended March 31, 2012. 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.
“The Company continues to meet its objectives to enhance shareholder value through continued plant optimization, cost reduction efforts and realizing the 25 MW Skookum Creek Project,” stated Richard Hopp, ROR Power's President and CEO. “We have found a strong partner with Concord to enable us to build the Project with the additional benefit of not having to issue any additional equity. Our key focus now is to secure the required permits and long term debt financing for the Project. We are targeting to have this complete and to begin construction of the Project in the second half of 2012, which will result in the startup of the Project, as planned, in the first quarter 2014.”
Three months ended March 31
($000’s except per share & generation amounts)
|Basic and diluted loss per share||(0.01)||(0.01)|
|Cash flow used in operations||(474)||(229)|
(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.
Improvements at the Brandywine facility over the last year continue to yield high conversion efficiencies and increased generation potential. Q1 2012 electricity sales of $141,156 decreased $10,668 or 7.0% from Q1 2011 sales of $151,824 as a direct result of decreased electricity generated to 2,356 MWh from 2,563 MWh. The decrease in electricity generation and sales is attributable to decreased production at the Brandywine Creek facility due to decreased water flows during the period. The snow pack is above average and the Company expects to see increased electricity generation in the next quarter.
EBITDA for Q1 2011 was negative $431,219 compared to negative $671,834. The increase in EBITDA is due substantially to reduced General and Administration ("G&A") expense compared to the comparable period in 2011. G&A expense of $414,457 during the first quarter of 2012 was $280,083, or 40.3% lower than G&A expense of $694,540 during the first quarter of 2011. The lower G&A costs during the quarter were primarily attributable to cost control initiatives implemented in 2011.
The Company recorded a loss for the first quarter of $1,182,310, including the $220,715 impairment charge of the Bella Coola cluster, compared to a loss of $1,190,750 for the comparable quarter in 2011. The loss, before impairment, would have been $961,591, an improvement of $229,155, compared to the first quarter of 2011, due primarily to reduced G&A during the quarter.
Funds used in operations were $473,928 in the first quarter of 2012 compared to $229,020 for the first quarter of 2011. This increase in funds used in operations of $244,098 during the first quarter of 2012 is due primarily to changes in working capital.
At March 31, 2011, the Company had $1.2 million in cash on hand. These cash resources will be used to carry out further development of the Mamquam watershed and future run-of-river development prospects.
The Company recently entered into agreements with certain subsidiaries in the Concord Pacific group of companies to provide equity financing for ROR Power’s 25 MW Skookum Power Project as more fully described in the 2011 Annual Financial Statements as filed with ww.sedar.com. Accordingly, the Company is evaluating alternatives for raising Project debt to complete this project and is currently negotiating with a lender.
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 400 MW.
Richard W. Hopp
President and CEO
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.Back