Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy
storage, solar PV and recovered energy power company, today
announced financial results for the first quarter ended March 31,
2022.
KEY FINANCIAL RESULTS
(Dollars in millions,
except per share) |
Q1 2022 |
Q1 2021 |
Change (%) |
GAAP Measures |
|
|
|
Revenues |
|
|
|
Electricity |
162.5 |
|
145.0 |
|
12.1 |
|
% |
Product |
14.6 |
|
8.6 |
|
69.2 |
|
% |
Energy Storage |
6.6 |
|
12.7 |
|
(48.5 |
) |
% |
Total Revenues |
183.7 |
|
166.4 |
|
10.4 |
|
% |
|
|
|
|
Gross margin (%) |
|
|
|
Electricity |
41.8 |
% |
44.9 |
% |
|
Product |
6.9 |
% |
6.6 |
% |
|
Energy Storage |
13.5 |
% |
62.4 |
% |
|
Gross margin (%) |
38.1 |
% |
44.3 |
% |
|
|
|
|
|
Operating income |
45.1 |
|
49.9 |
|
(9.6 |
) |
% |
Net income attributable to the
Company’s stockholders |
18.4 |
|
15.3 |
|
20.8 |
|
% |
Diluted EPS ($) |
0.33 |
|
0.27 |
|
22.2 |
|
% |
|
|
|
|
Non-GAAP Measures 1 |
|
|
|
Adjusted Net income
attributable to the Company’s stockholders |
19.9 |
|
24.1 |
|
(17.5 |
) |
% |
Adjusted Diluted EPS ($) |
0.35 |
|
0.42 |
|
(17.0 |
) |
% |
Adjusted EBITDA1 |
107.9 |
|
99.2 |
|
8.7 |
|
% |
“Ormat’s first quarter financial performance
demonstrated strong growth in both the Company’s top line and
Adjusted EBITDA, driven by strong performance from our leading
Electricity segment and strategic capacity additions,” said Doron
Blachar, Ormat’s Chief Executive Officer. “We are encouraged by the
Company’s ability to continue driving solid operating performance,
as we delivered strong quarterly net income and Adjusted EBITDA1
along with meaningful year-over-year growth in revenues. Overall
growth in the first quarter was driven by the McGinness Hills
enhancement, the increased capacity at Puna and the addition of the
Dixie Valley and Beowawe power plants to our asset portfolio.”
Blachar added, “This quarter we demonstrated
marked advancement towards many of our stated targets laid out in
Ormat’s recent Investor Day. We continue to make progress,
executing effectively against our growth plans in both our storage
and geothermal electricity portfolios. We recently commenced
commercial operation of Tungsten Mountain 2, which successfully
increased the total the Tungsten complex by 13 MW, and we are on
track to complete construction of the CD4 geothermal power plant,
the Tungsten Solar, the Steamboat Hills Solar and the Wister Solar
facilities by the end of the second quarter of this year.”
“We remain confident in our long-term plans to
increase our combined geothermal, energy storage and solar
generating portfolio to more than 1.5 GW by 2023. Further, we are
on track to deliver an annual Adjusted EBITDA of $500 million on a
run-rate basis towards the end of 2022 and expect these figures to
continue their healthy growth trajectory as we move forward with
our plans in 2022 and beyond.”
FINANCIAL AND RECENT BUSINESS
HIGHLIGHTS
- Net income
attributable to the Company's stockholders and diluted EPS for the
first quarter of 2022 increased 20.8% and 22.2%, respectively,
versus the prior year period. The increase was mainly due to the
increased contribution of our Electricity segment. In addition, in
the first quarter of 2021 the Company was negatively impacted by
the February power crisis in Texas that reduced net income
attributable to the Company’s stockholders and diluted EPS by $8.8
million and $0.16, respectively.
- Adjusted Net
income attributable to the Company's stockholders and adjusted
diluted EPS for the first quarter of 2022 decreased 17.5% and
17.0%, respectively, versus the prior year period. The decrease was
mainly due to higher interest expenses related to the TerraGen
acquisition and a higher tax rate.
- Adjusted EBITDA
for the first quarter of 2022 was $107.9 million, an increase of
8.7% compared to $99.2 million in 2021, supported by growth in the
Electricity segment.
- Electricity
segment revenues increased 12.1% for the first quarter of 2022,
compared to 2021, supported by contributions from the acquired
TerraGen geothermal assets in Q3 2021, the McGinness Hills
expansion, and the recovery of the Puna power plant, partially
offset by the shutdown of the Heber 1 power plant following a fire
that caused damage to the steam turbine in late February.
- Product segment
revenues increased 69.2% to $14.6 million. The sales growth
attributed to a higher backlog compared to the same period last
year.
- Product segment
backlog stands at $45.7 million as of May 2, 2022.
- Energy storage
segment revenues decreased 48.5% to $6.6 million, primarily due to
the absence of a one-time revenue of $5.4 million in the first
quarter of 2021 related to the February power crisis in Texas.
- Generation in
the first quarter of 2022 was 1.82 million MWh, an increase of 8.6%
compared to 1.68 million MWh in the first quarter of 2021.
IN ADDITION, THE COMPANY:
- Successfully
began commercial operation of the Tungsten 2 power plant in April
2022, which added 13MW to our Tungsten complex.
- Gradually
brought back to operation approximately 20 MW of the binary units
in the 40 MW Heber 1 plants following a fire in February 2022.
- Signed a 15-year
PPA with Peninsula Clean Energy to sell 26 MW of clean, renewable
energy from Ormat’s Heber 2 facility.
- Remained on
track with efforts to gradually increase Olkaria’s generation
following the power plant’s planned modification.
2022 GUIDANCE
- Total revenues
of between $710 million and $735 million
- Electricity
segment revenues between $630 million and $640 million, adjusted
down by $15 million due to the expected impact from Heber 1
shutdown following February fire.
- Product segment
revenues of between $50 million and $60 million
- Energy Storage
revenues of between $30 million and $35 million
- Adjusted EBITDA
to be between $430 million and $450 million, including $15.0
million for insurance proceeds
- Adjusted EBITDA
attributable to minority interest of approximately $32
million.
The Company provides a reconciliation of
Adjusted EBITDA, a non-GAAP financial measure for the three months
ended March 31, 2022. However, the Company does not provide
guidance on net income and is unable to provide a reconciliation
for its Adjusted EBITDA guidance range to net income without
unreasonable efforts due to high variability and complexity with
respect to estimating certain forward-looking amounts. These
include impairments and disposition and acquisition of business
interests, income tax expense, and other non-cash expenses and
adjusting items that are excluded from the calculation of Adjusted
EBITDA.
DIVIDEND
On May 2, 2022, the Company’s Board of Directors
declared, approved, and authorized payment of a quarterly dividend
of $0.12 per share pursuant to the Company’s dividend policy. The
dividend will be paid on May 31, 2022, to stockholders of record as
of the close of business on May 16, 2022. In addition, the Company
expects to pay a quarterly dividend of $0.12 per share in each of
the next two quarters.
CONFERENCE CALL DETAILS
Ormat will host a conference call to discuss its
financial results and other matters discussed in this press release
on Tuesday, May 3rd at 8:30 a.m. ET. The call will be available as
a live, listen-only webcast at investor.ormat.com. During the
webcast, management will refer to slides that will be posted on the
website. The slides and accompanying webcast can be accessed
through the News & Events in the Investor Relations section of
Ormat’s website. A replay of the webcast will be available
approximately 120 minutes after the conclusion of the live call and
will be archived for 12 months.
Investors may access the call by dialing: |
|
|
|
|
|
|
Canadian participant dial in (toll free): |
|
1-833-950-0062 |
|
United States participant international dial-in: |
|
1-844-200-6205 |
|
All other locations: |
|
+1-929-526-1599 |
|
Access code: |
|
176379 |
|
|
|
|
|
Conference replay |
|
|
|
|
US Toll Free: |
|
1-866-813-9403 |
|
Canada: |
|
1-226-828-7578 |
|
International Toll: |
|
+44-204-525-0658 |
|
Replay Access Code: |
|
492633 |
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal company and the only
vertically integrated company engaged in geothermal and recovered
energy generation (“REG”), with robust plans to accelerate
long-term growth in the energy storage market and to establish a
leading position in the U.S. energy storage market. The Company
owns, operates, designs, manufactures and sells geothermal and REG
power plants primarily based on the Ormat Energy Converter – a
power generation unit that converts low-, medium- and
high-temperature heat into electricity. The Company has engineered,
manufactured and constructed power plants, which it currently owns
or has installed for utilities and developers worldwide, totaling
approximately 3,200 MW of gross capacity. In addition, Ormat is
expanding its activity into energy storage services, solar
Photovoltaic (PV) and solar PV plus energy storage. Ormat’s current
total generating portfolio is 1.1 GW with 1,012 MW of geothermal
and solar generation portfolio that is spread globally in the U.S.,
Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 83 MW
energy storage portfolio that is located in the U.S.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may
contain statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that we expect or
anticipate will or may occur in the future, including such matters
as our projections of annual revenues, expenses and debt service
coverage with respect to our debt securities, future capital
expenditures, business strategy, competitive strengths, goals,
development or operation of generation assets, market and industry
developments and the growth of our business and operations, are
forward-looking statements. When used in this press release, the
words “may”, “will”, “could”, “should”, “expects”, “plans”,
“anticipates”, “believes”, “estimates”, “predicts”, “projects”,
“potential”, or “contemplate” or the negative of these terms or
other comparable terminology are intended to identify
forward-looking statements, although not all forward-looking
statements contain such words or expressions. These forward-looking
statements generally relate to Ormat's plans, objectives and
expectations for future operations and are based upon its
management's current estimates and projections of future results or
trends. Although we believe that our plans and objectives reflected
in or suggested by these forward-looking statements are reasonable,
we may not achieve these plans or objectives. Actual future results
may differ materially from those projected as a result of certain
risks and uncertainties and other risks described under "Risk
Factors" as described in Ormat’s annual report on Form 10-K filed
with the Securities and Exchange Commission (“SEC”) on February 25,
2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and
annual reports on Form 10-K that are filed from time to time with
the SEC.
These forward-looking statements are made only
as of the date hereof, and, except as legally required, we
undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events
or otherwise.
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESCondensed Consolidated
Statement of OperationsFor the Three-Month Periods Ended March 31,
2022, and 2021
|
Three Months Ended March 31, |
(Dollars in thousands,
except per share data) |
2022 |
2021 |
|
|
|
Revenues: |
|
|
Electricity |
162,525 |
|
144,988 |
|
Product |
14,628 |
|
8,643 |
|
Energy storage |
6,557 |
|
12,721 |
|
Total revenues |
183,710 |
|
166,352 |
|
Cost of revenues: |
|
|
Electricity |
94,521 |
|
79,851 |
|
Product |
13,613 |
|
8,074 |
|
Energy storage |
5,671 |
|
4,780 |
|
Total cost of revenues |
113,805 |
|
92,705 |
|
Gross profit |
69,905 |
|
73,647 |
|
Operating expenses: |
|
|
Research and development expenses |
1,064 |
|
876 |
|
Selling and marketing expenses |
4,365 |
|
4,276 |
|
General and administrative expenses |
17,572 |
|
18,606 |
|
Write-off of Energy Storage projects and assets |
1,826 |
|
— |
|
Operating income |
45,078 |
|
49,889 |
|
Other income (expense): |
|
|
Interest income |
342 |
|
263 |
|
Interest expense, net |
(21,081 |
) |
(19,016 |
) |
Derivatives and foreign currency transaction gains (losses) |
260 |
|
(16,866 |
) |
Income attributable to sale of tax benefits |
7,705 |
|
6,355 |
|
Other non-operating income (expense), net |
75 |
|
(331 |
) |
Income from operations before income tax and equity in earnings
(losses) of investees |
32,379 |
|
20,294 |
|
Income tax provision |
(10,163 |
) |
(3,007 |
) |
Equity in earnings (losses) of
investees, net |
577 |
|
542 |
|
Net income |
22,793 |
|
17,829 |
|
Net income attributable to noncontrolling interest |
(4,363 |
) |
(2,570 |
) |
Net income attributable to the Company's stockholders |
18,430 |
|
15,259 |
|
Earnings per share
attributable to the Company's stockholders: |
|
|
Basic: |
0.33 |
|
0.27 |
|
Diluted: |
0.33 |
|
0.27 |
|
Weighted average number of shares used in computation of earnings
per share attributable to the Company's stockholders: |
|
|
Basic |
56,063 |
|
55,988 |
|
Diluted |
56,366 |
|
56,735 |
|
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESCondensed Consolidated
Balance SheetFor the Periods Ended March 31, 2022, and December 31,
2021
|
March 31, 2022 |
|
December 31, 2021 |
(Dollars
in thousands) |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
130,006 |
|
|
239,278 |
|
Marketable securities at fair value |
42,927 |
|
|
43,343 |
|
Restricted cash and cash equivalents |
111,127 |
|
|
104,166 |
|
Receivables: |
|
|
|
Trade |
116,555 |
|
|
122,944 |
|
Other |
20,756 |
|
|
18,144 |
|
Inventories |
32,888 |
|
|
28,445 |
|
Costs and estimated earnings in excess of billings on uncompleted
contracts |
11,522 |
|
|
9,692 |
|
Prepaid expenses and other |
42,208 |
|
|
35,920 |
|
Total current assets |
507,989 |
|
|
601,932 |
|
Investment in unconsolidated
companies |
112,522 |
|
|
105,886 |
|
Deposits and other |
70,398 |
|
|
78,915 |
|
Deferred income taxes |
138,709 |
|
|
143,450 |
|
Property, plant and equipment,
net |
2,293,720 |
|
|
2,294,973 |
|
Construction-in-process |
819,560 |
|
|
721,483 |
|
Operating leases right of
use |
19,753 |
|
|
19,357 |
|
Finance leases right of
use |
5,762 |
|
|
6,414 |
|
Intangible assets, net |
355,185 |
|
|
363,314 |
|
Goodwill |
90,591 |
|
|
89,954 |
|
Total assets |
4,414,189 |
|
|
4,425,678 |
|
|
|
|
|
LIABILITIES AND EQUITY |
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
164,752 |
|
|
143,186 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
10,964 |
|
|
9,248 |
|
Current portion of long-term debt: |
|
|
|
Limited and non-recourse |
77,190 |
|
|
61.695 |
|
Full recourse |
313,178 |
|
|
313,846 |
|
Financing Liability |
13,039 |
|
|
10,835 |
|
Operating lease liabilities |
2,490 |
|
|
2,564 |
|
Finance lease liabilities |
2,378 |
|
|
2,782 |
|
Total current liabilities |
583,991 |
|
|
544,156 |
|
Long-term debt, net of current
portion: |
|
|
|
Limited and non-recourse: |
507,520 |
|
|
539,664 |
|
Full recourse: |
716,405 |
|
|
740,335 |
|
Financing Liability |
236,057 |
|
|
242,029 |
|
Operating lease liabilities |
17,082 |
|
|
16,462 |
|
Finance lease liabilities |
4,075 |
|
|
4,361 |
|
Liability associated with sale
of tax benefits |
129,381 |
|
|
134,953 |
|
Deferred income taxes |
83,352 |
|
|
84,662 |
|
Liability for unrecognized tax
benefits |
6,034 |
|
|
5,730 |
|
Liabilities for severance
pay |
15,552 |
|
|
15,694 |
|
Asset retirement
obligation |
86,109 |
|
|
84,891 |
|
Other long-term
liabilities |
4,374 |
|
|
4,951 |
|
Total liabilities |
2,389,932 |
|
|
2,417,888 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Redeemable noncontrolling
interest |
9,408 |
|
|
9,329 |
|
|
|
|
|
Equity: |
|
|
|
The Company's stockholders' equity: |
|
|
|
Common stock |
56 |
|
|
56 |
|
Additional paid-in capital |
1,274,838 |
|
|
1,271,925 |
|
Retained earnings |
596,912 |
|
|
585,209 |
|
Accumulated other comprehensive income (loss) |
(1,137 |
) |
|
(2,191 |
) |
Total stockholders' equity attributable to Company's
stockholders |
1,870,669 |
|
|
1,854,999 |
|
Noncontrolling interest |
144,180 |
|
|
143,462 |
|
Total equity |
2,014,849 |
|
|
1,998,461 |
|
Total liabilities, redeemable noncontrolling interest and
equity |
4,414,189 |
|
|
4,425,678 |
|
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation of EBITDA
and Adjusted EBITDA For the Three-Month Periods Ended March 31,
2022, and 2021
We calculate EBITDA as net income before
interest, taxes, depreciation and amortization. We calculate
Adjusted EBITDA as net income before interest, taxes, depreciation
and amortization, adjusted for (i) mark-to-market gains or losses
from accounting for derivatives, (ii) stock-based compensation,
(iii) merger and acquisition transaction costs, (iv) gain or loss
from extinguishment of liabilities, and (v) other unusual or
non-recurring items. We adjust for these factors as they may be
non-cash, unusual in nature and/or are not factors used by
management for evaluating operating performance. We believe that
presentation of these measures will enhance an investor’s ability
to evaluate Ormat’s financial and operating performance. EBITDA and
Adjusted EBITDA are not measurements of financial performance or
liquidity under accounting principles generally accepted in the
United States, or U.S. GAAP, and should not be considered as an
alternative to cash flow from operating activities or as a measure
of liquidity or an alternative to net earnings as indicators of our
operating performance or any other measures of performance derived
in accordance with U.S. GAAP. Our Board of Directors and senior
management use EBITDA and Adjusted EBITDA to evaluate our financial
performance. However, other companies in our industry may calculate
EBITDA and Adjusted EBITDA differently than we do.
The following table reconciles net income to
EBITDA and Adjusted EBITDA for the three-month periods ended March
31, 2022, and 2021.
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
(Dollars in thousands) |
Net income |
$ |
22,793 |
|
$ |
17,829 |
|
Adjusted for: |
|
|
|
Interest expense, net (including amortization of deferred financing
costs) |
|
20,739 |
|
|
18,753 |
|
Income tax provision |
|
10,163 |
|
|
3,007 |
|
Adjustment to investment in an unconsolidated company: our
proportionate share in interest expense, tax and depreciation and
amortization in Sarulla |
|
2,124 |
|
|
2,465 |
|
Depreciation and amortization |
|
46,769 |
|
|
40,829 |
|
EBITDA |
$ |
102,588 |
|
$ |
82,883 |
|
Mark-to-market (gains) or
losses from accounting for derivative |
|
277 |
|
|
2,086 |
|
Stock-based compensation |
|
2,814 |
|
|
2,097 |
|
Reversal of a contingent
liability |
|
— |
|
|
(418 |
) |
Allowance for bad debts |
|
115 |
|
|
2,980 |
|
Hedge losses resulting from
February power crisis in Texas |
|
— |
|
|
9,133 |
|
Write-off of related to Energy
Storage projects and activity |
|
1,825 |
|
|
— |
|
Merger and acquisition
transaction costs |
|
249 |
|
|
484 |
|
Adjusted EBITDA |
$ |
107,868 |
|
$ |
99,245 |
|
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation of
Adjusted Net Income attributable to the Company's stockholders and
Adjusted EPSFor the Three-Month Periods Ended March 31, 2022, and
2021
We calculate Adjusted Net income attributable to
the Company's stockholders and Adjusted EPS as net income
attributable to the company's stockholders and diluted EPS,
respectively, adjusted for one-time expense items that are not
representative of our ongoing business and operations. We believe
that presentation of these measures enhances the usefulness of
our financial information to our board of directors, senior
management and investors by providing measures to assess the
overall performance of our ongoing business. Other companies in our
industry may calculate net income attributable to the Company's
stockholders and diluted EPS differently than we do, and this
information should not be considered in isolation from, or as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP or other non-GAAP financial
measures.
The following tables reconciles net income
attributable to the Company's stockholders and Adjusted EPS for the
three-month periods ended March 31, 2022, and 2021.
|
Three Months Ended March 30, 2022 |
|
2022 |
|
2021 |
(in millions, except for EPS) |
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income attributable
to the Company's stockholders |
$ |
18.4 |
|
$ |
15.3 |
|
|
|
|
|
|
One-time net expense related
to the February power crisis in Texas, net of taxes |
|
— |
|
|
8.8 |
|
|
|
|
|
|
Write-off of related to Energy
Storage projects and activity |
$ |
1.4 |
|
|
— |
|
|
|
|
|
|
Adjusted Net income
attributable to the Company's stockholders |
$ |
19.9 |
|
$ |
24.1 |
|
|
|
|
|
|
GAAP diluted EPS |
$ |
0.33 |
|
$ |
0.27 |
|
|
|
|
|
|
One-time net expense related
to the February power crisis in Texas, net of taxes |
|
— |
|
|
0.16 |
|
|
|
|
|
|
Write-off of related to Energy
Storage projects and activity |
$ |
0.02 |
|
|
— |
|
|
|
|
|
|
Diluted Adjusted EPS |
$ |
0.35 |
|
$ |
0.42 |
_____________________________________
1 Reconciliation is set forth below in this
release
Ormat Technologies Contact: |
|
Investor Relations Agency Contact: |
Smadar Lavi |
|
Sam Cohen or Joseph Caminiti |
VP Head of IR and ESG Planning & Reporting |
|
Alpha IR Group |
775-356-9029 (ext. 65726) |
|
312-445-2870 |
slavi@ormat.com |
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ORA@alpha-ir.com |
Ormat Technologies (NYSE:ORA)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Ormat Technologies (NYSE:ORA)
Historical Stock Chart
Von Apr 2023 bis Apr 2024