VANCOUVER, April 30, 2013 /CNW/ - Run of River Power Inc.
("ROR Power" or "the Company") (TSX-V: ROR) today announced
financial and operating results for the year ended December 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.
Highlights
Management objectives in 2012 were to continue to reduce General
and Administration ("G&A") costs of the Company and maximize
shareholder value through the Skookum Creek Power Project (the
"Project"). The Company is pleased to provide the following
highlights:
- The Company succeeded in reducing G&A by $899,666 to $1,252,169, or 42% lower than the
total of $2,151,835 during 2011.
- Run of River Power Inc. and Concord Green Energy Inc. entered
into an equity financing transaction for the Project. ROR Power
will continue to provide management services for the Project for a
fee based on the Project's post-debt service cash flows. In
addition, the Corporation has retained a royalty interest which
will pay it 10% of the Project's gross revenues. ROR Power has an
option to convert its royalty interest into a 50% equity interest
after the fifth anniversary of the commercial operation date of the
project.
- On July 6, 2012, the Company
completed a private placement of $3.65
million in subordinated secured debentures bearing interest
at 12%.
"ROR is very pleased to report that the Company continues to
meet its objectives to enhance shareholder value through continued
cost reduction efforts and the realization of the 25 MW Skookum
Creek Project," stated Richard Hopp,
ROR Power's President and CEO. "We have made significant progress
on all phases of the Project including both equity and debt
financing and advancing Project construction. The Project is
on budget and on schedule for completion in the first quarter 2014
as planned."
Financial Summary
Period ended December 31 |
3
months |
12
months |
($000's except per share & generation
amounts) |
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Electricity sales |
401 |
433 |
1,936 |
2,090 |
EBITDA1 |
153 |
(209) |
195 |
(744) |
Loss |
(434) |
(591) |
(2,301) |
(2,717) |
Basic and diluted loss per share |
(0.00) |
(0.01) |
(0.02) |
(0.03) |
Total assets |
27,278 |
28,497 |
27,278 |
28,497 |
Generation (MWh) |
6,695 |
7,310 |
32,314 |
35,281 |
(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
2012 electricity sales of $1,936,444 decreased $153,781 or 7.4% from 2011 sales of $2,090,225 as a direct result of a decrease in
electricity generated from 35,281 MWh to 32,314 MWh. Electricity
production was down due to hydrology conditions and reduced output
from one of the generating units at the plant, which is scheduled
for replacement in Q2 2013.
The Corporation recorded a loss for 2012 of $2,301,191 compared to a loss of $2,717,177 for 2011. The decrease in the net
loss, despite a reduction in revenue from the Brandywine facility,
is due primarily to a reduction in G&A expense during the year.
The Company also recognized the portion earned of the development
fee received for the construction of the Skookum Project.
Funds used in operations were $179,921 in 2012 compared to $280,193 for 2011. This improvement of
$100,272 was due principally to
reduced Corporate G&A and receipt of a development fee for the
Skookum Project.
Financial Position
At December 31, 2012, the Company
had $2.5 million in cash on hand.
These cash resources will be used to carry out further development
of the Company's development prospects.
The Company will need to raise capital to support its
administrative obligations, pursue development of its other early
stage projects as well as for the redemption of the 10% convertible
debentures should they not be converted into shares of the
Corporation and for the redemption of the secured subordinated
debentures which come due in July
2013.
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 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 390 MW.
Forward-Looking Statements
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.
SOURCE Run of River Power Inc.