Ormat Technologies Inc (ORA)

[Pro-Life]

Ormat Technologies Reports Third Quarter 2010 Results

http://www.ormat.com/news/latest-items/ormat-technologies-reports-third-quarter-2010-results

RENO, Nevada, November 2, 2010 -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the third quarter 2010.

Quarterly Highlights:

• A 23% increase in Electricity Segment revenues;
• Net income of $32 million (including after tax capital gain of $23 million);
• Received cash grant of $108 million for North Brawley under the ARRA in September 2010;
• Substantial progress in moving prospective projects into “start of construction”.

Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “In the third quarter we continued to make progress in the acquisition and development of new sites. We also started construction on two additional sites that we believe will qualify for an ITC cash grant, which brings the total expected capacity already in the status of ‘start of construction’ to 120 MW.”

“In the financing area, we completed a bond offering of $142 million, received a $108 million ITC cash grant under the ARRA and made progress in a $350 million DOE loan guarantee to finance three of our Nevada projects which are already under construction.”

“The otherwise good performance of our operating power plants continued to be impacted by North Brawley, even though its output increased to 25 MW, and while we continue to make improvements in the plant, its negative impact on gross margin is expected to continue through 2011.”

Financial Summary
Third Quarter Results

ltsFor the three-month period ended September 30, 2010, total revenues were $101.5 million, compared to $119.0 million in the third quarter of 2009. Electricity Segment revenues increased by 22.7% to $83.4 million up from $67.9 million in the third quarter of 2009. Total output increased by almost 20% from 783,532 MWh in the third quarter of 2009 to 937,402 MWh in the third quarter of 2010. The average revenue rate of the Company’s electricity portfolio increased from $87 per MWh in the third quarter of 2009 to $89 per MWh in the third quarter of 2010.

Product Segment revenues for the three-month period ended September 30, 2010 were $18.1 million, compared to $51.1 million in the same period in 2009. As noted in recent earnings releases, the Company expects revenues in the Product Segment to be down from last year’s unusual high level throughout the rest of the year.

For the quarter, the Company reported net income of $32.4 million or $0.71 per share (basic and diluted), compared to net income of $21.9 million, or $0.48 per share (basic and diluted), for the same period in 2009 (as revised). The increase is principally attributable to an after-tax capital gain of $22.6 million, related to the acquisition of controlling interest in the Mammoth complex in California. The pre-tax gain of $36.9 million is equal to the difference between the acquisition-date fair value of the previously-held investment in the Mammoth complex and the acquisition-date book value of such investment. The North Brawley power plant had an after-tax loss of approximately $4.0 million, or $0.09 per share, for the quarter.

Adjusted EBITDA for the third quarter of 2010 was $78.8 million, compared to $48.0 million (as revised) for the same period last year. Adjusted EBITDA includes consolidated EBITDA and the Company’s share in the interest, taxes, depreciation and amortization related to the Company's unconsolidated 50% interest in the Mammoth complex in California. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA and additional cash flows information is set forth below in this release.

Cash and cash equivalents as of September 30, 2010 were $49.2 million. The Company has available committed lines of credit with commercial banks aggregating $402.5 million, of which $222.7 million is unused.

On November 2, 2010, Ormat’s Board of Directors approved the payment of a quarterly dividend of $0.05 per share pursuant to the Company’s dividend policy, which targets an annual payout ratio of at least 20% of the Company’s net income. The dividend will be paid on November 30, 2010 to shareholders of record as of the close of business on November 17, 2010.

Commenting on the outlook for 2010, Ms. Bronicki said, “We currently expect 2010 Electricity Segment revenues to be between $290 million and $295 million. This number does not include our share in the revenues of the Mammoth complex of approximately $6 million for the first seven months of 2010 that was accounted by the equity method. With regard to the Product Segment, we expect 2010 revenues to be approximately $80 million.”

Nine-Month Results

For the nine-month period ended September 30, 2010, total revenues were $280.4 million a decrease of 11.8% from $317.8 million in the same period last year. Net income for the period was $32.7 million, or $0.72 per share (basic and diluted), compared to net income of $52.4 million, or $1.16 per share (basic and diluted), in the same period in 2009 (as revised).

Electricity Segment revenues for the nine-month period ended September 30, 2010 were $218.3 million, compared to $189.8 million in the same period a year ago. Product Segment revenues for the first nine months of 2010 were $62.1 million, compared to $128.0 million in the same period in 2009.

Adjusted EBITDA for the nine-month period ended September 30, 2009 was $134.9 million, compared to $125.1 million (as revised) for the same period a year ago. Adjusted EBITDA includes consolidated EBITDA and the Company’s share in the interest, taxes, depreciation and amortization related to the Company's unconsolidated 50% interest in the Mammoth complex in California. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA and additional cash flows information is set forth below in this release.

Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 9:00 A.M. EDT on Wednesday, November 3, 2010. The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the Webcast & Presentations in the Investor Relations section of Ormat’s website.

A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. A replay will be available from available from 1 p.m. EDT on November 3, 2010 through 11:59 p.m. EST, November 10, 2010. Please call: [phone] (U.S. and Canada) [phone] (International) and enter the Reply code: 17704060