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>>> Ormat Technologies Reports a Double-Digit Growth in Revenues, Net Income, and Adjusted EBITDA in the Second Quarter



August 02, 2016



http://finance.yahoo.com/news/ormat-technologies-reports-double-digit-210000775.html



RENO, Nev., Aug. 02, 2016 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (ORA) today announced financial results for the second quarter ended June 30, 2016.


Second Quarter Highlights and Recent Developments:
•Total revenues of $159.9 million, up 13.8% compared to the second quarter of 2015;


•Electricity segment revenues of $104.0 million, up 14.4% compared to the second quarter of 2015, mainly due to new power plants commencing operations in the fourth quarter 2015 and early this year;


•Product segment revenues of $55.9 million, up 12.7% compared to the second quarter of 2015;


•Electricity generation increased 10.8% to 1.3 million MWh;


•Gross margin increased to 41.2% of total revenues compared to 36.1% in the second quarter of 2015, mainly as a result of improved operating efficiencies;


•Operating income grew 34.3% to $51.9 million compared to $38.6 million in the second quarter of 2015;


•Net income attributable to the company's shareholders of $24.3 million, or $0.49 per diluted share, compared to $14.4 million, or $0.28 per diluted share, in the second quarter of 2015;


•Adjusted EBITDA of $81.2 million, up 19.7% compared to $67.8 million in the second quarter of 2015;


•Declared a quarterly dividend of $0.07 per share for the second quarter of 2016;


•Secured $36.0 million Supply & EPC Contracts for a geothermal power plant in New Zealand;


•Completed construction of the Veyo Recovered Energy Generation Project in Southern Utah for UAMPS; and


•Closed the acquisition of the Bouillante Geothermal Power Plant on the Island of Guadeloupe.



“We continued to efficiently execute in the second quarter and delivered strong top-line growth and margin expansion, enabling us to deliver over 60% increase in net income and over 19% increase in Adjusted EBITDA compared to the second quarter last year,” noted Isaac Angel, Chief Executive Officer. “Our product segment has benefited, and will continue to benefit from higher revenue contribution, from several large contracts, and lower commodity prices, which drove gross margins in the products segment to higher than normal levels in the first half, a trend we expect to moderate through the end of the year. In the electricity segment, the contribution of new projects, and specifically the second phase of our Don Campbell Project in Nevada and Plant 4 of our Olkaria III complex in Kenya, is driving increased generation and revenues, while our focus on efficient utilization of infrastructure and operational enhancements are positively affecting gross margins.

“On the product side, we continued to win orders and strengthen our backlog,” added Mr. Angel. “In May, we signed $36 million Supply and EPC contracts, with Eastland Group for the Te Ahi O Maui geothermal project located near Kawerau, New Zealand. This contract as well as other new contracts that we recently signed increased our backlog to $228 million.”

“Looking forward we continue with the implementation of our strategic plan to expand our geographic presence as well as our footprint in the energy storage market which will further advance our goal of transitioning Ormat from a geothermal company to a recognized leader in the renewable energy industry,” continued Mr. Angel.

Guidance

Mr. Angel added, “The strong first-half performance and better than normal gross margins have enabled us to increase our guidance for full-year Adjusted EBITDA. We reiterate our revenue guidance and expect full-year 2016 total revenue of between $620 million and $640 million, with product segment revenue of between $210 million and $220 million. For the electricity segment, we expect revenues to be between $410 million and $420 million. We now expect 2016 Adjusted EBITDA of between $310 million and $320 million for the full year.”

Financial Summary

Second Quarter Results

For the three months ended June 30, 2016, total revenues were $159.9 million, up from $140.5 million in the second quarter of 2015, an increase of 13.8%. Electricity Segment revenues increased 14.4% to $104.0 million in the three months ended June 30, 2016, up from $90.9 million in the three months ended June 30, 2015. Product Segment revenues increased 12.7% to $55.9 million in the three months ended June 30, 2016, up from $49.6 million in the three months ended June 30, 2015.

The company reported net income attributable to the company’s shareholders of $24.3 million, or $0.49 per diluted share, compared to net income attributable to the company’s shareholders of $14.4 million, or $0.28 per diluted share, for the same period last year.

Adjusted EBITDA for the three months ended June 30, 2016 was $81.2 million, compared to $67.8 million for the three months ended June 30, 2015, an increase of 19.7%. The reconciliation of GAAP net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA and additional cash flow information is set forth below in this release.

On August 2, 2016, ORMAT’s Board of Directors approved a payment of a quarterly dividend of $0.07 per share pursuant to the company’s dividend policy. The dividend will be paid on August 30, 2016 to shareholders of record as of the close of business on August 16, 2016. In addition, the company expects to pay a quarterly dividend of $0.07 per share in the next quarter.

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