There were 1,610 press releases posted in the last 24 hours and 413,540 in the last 365 days.

Ormat Technologies Reports All-Time Record Annual Revenue of $595 Million and Adjusted EBITDA of $291 Million

Higher Product Segment Revenue and Continued Margin Improvements Drive Annual Results Past 2015 Guidance

Total Book Equity Exceeds $1 Billion

RENO, Nev., Feb. 23, 2016 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) today announced record financial results for the fourth quarter and full year ended December 31, 2015.

Financial highlights for the full year:

  • Total revenues of  $594.6 million in 2015, an increase of 6.3% from 2014;
  • Product segment revenues reached record levels of $218.7 million in 2015 from $177.2 million in 2014 representing a 23.4% increase;
  • Electricity segment revenues decreased 1.7% to $375.9 million in 2015 from $382.3 million in 2014, mainly related to lower oil and natural gas prices; 
  • Electricity generation increased 8.6% to 4.8 million MWh;
  • Gross margin increased to 36.7% in 2015 compared to 36.4% in 2014;
  • Operating income grew 14.3% to $164.1 million in 2015 from $143.5 million in 2014; 
  • Adjusted EBITDA grew 6.8% to $291.3 million in 2015;
  • Net income attributable to the company's shareholders, increased 120.7% compared to 2014 and reached $119.6 million, or $2.43 per diluted share in 2015 ([1]);
  • Net income attributable to the company's shareholders excluding the non-recurring tax benefit recorded in the third quarter (1), was $70.9 million, or $1.44 per diluted share in 2015; 
  • Total book equity exceeded $1 billion; and 
  • Declared a quarterly dividend of $0.31 per share for the fourth quarter of 2015.

(1) In the third quarter of 2015, the Company recorded income tax benefit that includes deferred tax asset and related expenses of $48.7 million relating to a new tax law in Kenya, which extended the period of utilizing investment deductions for the Olkaria 3 power plant from five years to 10 years.

Operational and business developments for the full year:

  • Commenced commercial operation of three new power plants with an aggregate capacity of over 90 MW. All three plants were constructed and started operating ahead of planned schedule, including:
    • Plant 4 in Olkaria III in Kenya, expanding complex capacity to nearly 140 MW in January 2016;  
    • Phase 2 of Don A. Campbell geothermal power plant in Nevada came on line in September 2015. The complex annual generating capacity increased to approximately 41 MW following the commencement of Phase 2; and
    • Phase 2 of the McGinness Hills geothermal power plant in Nevada came on line February 2015 and increased the complex’s generating capacity to approximately 83 MW;
  • Heber 1 geothermal power plant started selling power under a new PPA with an average fixed energy price of $85.62, reducing our portfolio exposure to natural gas price fluctuations to approximately 90 MW; 
  • Commenced construction of the 35 MW Platanares geothermal project in Honduras;
  • Signed MOU to acquire 85% of the Bouillante geothermal power plant in the Island of Guadeloupe;
  • Signed a strategic collaboration agreement with Toshiba Corporation to develop opportunities in the areas of geothermal power generation systems and related equipment;
  • Closed and received $162.3 million cash from Northleaf Capital Partners for a 36.75% equity investment in certain power plants;
  • Closed $42 million loan agreement for the Amatitlan power plant in Guatemala;
  • Signed an approximate $100.0 million EPC contract in Chile; and
  • Completed a share exchange transaction with Ormat Industries Ltd.

“We executed well in 2015, delivered strong financial results and made significant progress on our long-term growth strategy positioning us well for continued success in 2016 and beyond,” noted Isaac Angel, Chief Executive Officer. “Our methodical efforts to improve operational efficiency, expand profit margins, and diversify revenue are progressing well and driving record financial results. During 2015, our product segment grew significantly, balancing headwinds in our electricity segment mainly related to lower oil and natural gas prices. We entered 2016 with strong momentum and we believe we are well positioned for continued success and expect to achieve profitable growth as well as expand opportunities around the world for both our operating segments, including as a result of our collaboration with Toshiba.”

“We have a plan to add 160 to 190 megawatts by the end of 2018 by bringing new plants online, expanding existing plants as well as adding capacity from the recent acquisition,” continued Mr. Angel. “As part of this expansion plan, we recently began development efforts in two sites in Nevada. These two projects, Tungsten Mountain and Dixie Meadows, are each expected to generate 25 to 35 MW once they come online in 2017 or 2018. We have drilled several exploration wells at both sites, and while drilling activity is ongoing, we are making progress towards securing PPAs. We believe that these projects may qualify for production tax credits.”

“In 2015, we took action to increase shareholder value by completing the Northleaf and restructuring transactions,” continued Mr. Angel. “We continue to enhance all aspects of Ormat’s value chain to improve our performance as well as to progress with near and long-term initiatives in our core geothermal business and in new activities to provide long-term sustainable growth. I am encouraged by our progress in the last year, and as we progress in each of our key initiatives, we are setting our intermediate and long-term strategies.”

Guidance

Mr. Angel added, “We 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. The Electricity segment revenue guidance assumes current oil and natural gas prices. We expect 2016 Adjusted EBITDA of $300 to $310 million for the full year. This estimate includes approximately $9 million of expected income related to tax equity transactions compared to $25 million in 2015. We expect annual adjusted EBITDA attributable to minority’s interest to be approximately $17 million. This amount assumes the inclusion of the second phase of the Don A. Campbell power plant in the joint venture with Northleaf.”

Financial Summary

Annual Results

For the year ended December 31, 2015, total revenues increased 6.3% from $559.5 million in 2014 to $594.6 million in 2015. Electricity segment revenues decreased 1.7% from $382.3 million in 2014 to $375.9 million in 2015. This decrease was primarily due to the impact of lower commodity prices and the hurricane-related damage at the Puna plant in Hawaii last year. Product segment revenues increased by 23.4% to $218.7 million in 2015 compared to $177.2 million in 2014.

Operating income for the full year 2015 was $164.1 million, up 14.3% compared to $143.5 million in 2014.

The company reported that net income attributable to the company’s shareholders increased 120.7% to $119.6 million, or $2.43 per share diluted, for 2015 compared to $54.2 million or $1.18 per share diluted, last year. Full-year profitability included a non-recurring, non-cash income tax benefit of $48.7 million relating to a new tax law in Kenya which extended the period of utilizing investment deductions from five years to ten years for the Olkaria 3 power plant recorded in the third quarter of 2015. The net income attributable to the company's shareholders excluding the non-recurring tax benefit, was $70.9 million, or $1.44 per share diluted in 2015;

Adjusted EBITDA for the year ended December 31, 2015 was $291.3 million, compared to $272.7 million for the year ended December 31, 2014. The reconciliation of GAAP net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA and additional cash flows information is set forth below in this release.

Net cash provided by operating activities was $190.0 million in the year ended December 31, 2015, compared to $213.2 million in the year ended December 31, 2014.

As of December 31, 2015, cash and cash equivalents were $185.9 million. In addition, as of December 31, 2015, the company had $145.3 million of unused corporate borrowing capacity under existing lines of credit.

Fourth Quarter Results

For the three months ended December 31, 2015, total revenues reached $171.1 million from $149.2 million in the fourth quarter of 2014, an increase of 14.6%. Electricity revenues increased 4.8% to $97.8 million in the three months ended December 31, 2015, from $93.3 million in the three months ended December 31, 2014. Product revenues increased 31.0% to $73.3 million in the three months ended December 31, 2015, from $56.0 million in the three months ended December 31, 2014.

The company reported net income attributable to the company’s shareholders of $23.0 million or $0.46 per share diluted compared to net income attributable to the company’s shareholders of $7.0 million or $0.15 per share for the same period last year.

Adjusted EBITDA for the three months ended December 31, 2015 was $79.1 million, compared to $68.3 million for the three months ended December 31, 2014. The reconciliation of GAAP net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA and additional cash flows information is set forth below in this release.

On February 23, 2016, Ormat's Board of Directors approved a payment of a quarterly dividend of $0.31 per share pursuant to the company’s dividend policy. The dividend will be paid on March 29, 2016 to shareholders of record as of closing of business on March 15, 2016. In addition, the company expects to pay quarterly dividends of $0.07 per share in the next three quarters.

Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. EST on Wednesday, February 24, 2016. 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 website. The slides and accompanying webcast can be accessed through the Events & Presentations in the Investor Relations section of Ormat's website.

An archive of the webcast will be available approximately 30 minutes after the conclusion of the live call.

Please ask to be joined into the Ormat Technologies, Inc. call. 

PARTICIPANT TELEPHONE NUMBERS
PARTICIPANT DIAL IN (TOLL FREE): 1-877-511-6790
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-902-4141
Canada Toll Free 1-855-669-9657
     
CONFERENCE REPLAY
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Replay Access Code: 10077988
   

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 the objective of becoming a leading global provider of renewable energy. 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. With 69 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 470 employees in the United States and over 600 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,000 MW of gross capacity. Ormat’s current 697 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.                                            

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. 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2015.

These forward-looking statements are made only as of the date hereof, and 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 Subsidiaries
Condensed Consolidated Statements of Operations
For the Three-Month Periods and Years Ended December 31, 2015 and 2014
(Unaudited)
       
  Three Months Ended
December 31
  Year Months Ended
December 31
  2015   2014   2015   2014
                       
  (In thousands, except per
share data)
  (In thousands, except per
share data)
Revenues:                      
Electricity $   97,796     $   93,286     $   375,920     $   382,301  
Product     73,278         55,957         218,724         177,223  
Total revenues     171,074         149,243         594,644         559,524  
Cost of revenues:                                      
Electricity     63,008         60,547         242,612         246,630  
Product     43,927         33,836         133,753         109,143  
Total cost of revenues     106,935         94,383         376,365         355,773  
Gross margin     64,139         54,860         218,279         203,751  
Operating expenses:                      
Research and development expenses     668         388         1,780         783  
Selling and marketing expenses     3,978         4,572         16,077         15,425  
General and administrative expenses     9,185         7,767         34,782         28,614  
Write-off of unsuccessful exploration activities     1,220         7,332         1,579         15,439  
Operating income      49,088         34,801         164,061         143,490  
Other income (expense):                      
Interest income     191         76         297         312  
Interest expense, net     (18,142 )       (19,570 )       (72,577 )       (84,654 )
Foreign currency translation and transaction gains (losses)      (981 )       (2,200 )       (1,622 )       (5,839 )
Income attributable to sale of tax benefits     6,514         5,809         25,431         24,143  
Gain from sale of property, plant and equipment                             7,628  
Other non-operating expense, net     (468 )       107         (1,991 )       756  
Income before income taxes and equity in                                      
losses of investees     36,202         19,023         113,599         85,836  
Income tax provision (benefit)     (11,438 )       (9,877 )       15,258         (27,608 )
Equity in losses of investees, net     (616 )       (2,003 )       (5,508 )       (3,213 )
                                       
Net income      24,148         7,143         123,349         55,015  
Net income attributable to noncontrolling interest     (1,160 )       (163 )       (3,776 )       (833 )
Net income attributable to the Company's stockholders $   22,988     $   6,980     $   119,573     $   54,182  
                                       
Earnings per share attributable to the Company's stockholders - Basic and diluted:                      
Basic:                      
Income from continuing operations  $   0.47     $   0.15     $   2.46     $   1.19  
Discontinued operations     -         -         -         -  
Net Income $   0.47     $   0.15     $   2.46     $   1.19  
                                       
Diluted:                                      
Income from continuing operations  $   0.46     $   0.15     $   2.43     $   1.18  
Discontinued operations     -         -         -         -  
Net Income  $   0.46     $   0.15     $   2.43     $   1.18  
                                       
Weighted average number of shares used in computation of earnings per share
  attributable to the Company's stockholders:
                                     
Basic     49,074         45,537         48,562         45,508  
Diluted     49,668         46,018         49,187         45,859  
                                       


Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2015 and December 31, 2014
(Unaudited)
         
    December 31,   December 31,
    2015   2014
             
      (In thousands)
ASSETS                    
Current assets:            
Cash and cash equivalents    $   185,919     $   40,230  
Restricted cash, cash equivalents and marketable securities       49,503         93,248  
Receivables:            
Trade       55,301         48,609  
Related entity               451  
Other       7,885         10,141  
Due from Parent               1,337  
Inventories       18,074         16,930  
Costs and estimated earnings in excess of billings on uncompleted contracts       25,120         27,793  
Deferred income taxes               251  
Prepaid expenses and other       33,334         34,884  
Total current assets       375,136         273,874  
Deposits and other       17,968         20,044  
Deferred charges       42,811         37,567  
Property, plant and equipment, net        1,559,335         1,437,637  
Construction-in-process       248,835         296,722  
Deferred financing and lease costs, net       23,084         27,057  
Intangible assets, net       25,875         28,655  
Total assets   $   2,293,044     $   2,121,556  
LIABILITIES AND EQUITY                    
Current liabilities:            
Accounts payable and accrued expenses   $   91,955     $   88,276  
Deferred income taxes               974  
Short term revolving credit lines with banks (full recourse)               20,300  
Billings in excess of costs and estimated earnings on uncompleted contracts       33,892         24,724  
Current portion of long-term debt:            
Limited and non-recourse:            
Senior secured notes        29,930         34,368  
Other loans       21,495         17,995  
Full recourse       11,229         19,116  
Total current liabilities       188,501         205,753  
Long-term debt, net of current portion:            
Limited and non-recourse:            
Senior secured notes        305,328         360,366  
Other loans       283,380         264,625  
Full recourse:            
Senior unsecured bonds       249,981         250,289  
Other loans       19,122         34,351  
Unconsolidated investments       8,100         3,617  
Liability associated with sale of tax benefits       11,665         39,021  
Deferred lease income       58,099         60,560  
Deferred income taxes       32,654         66,220  
Liability for unrecognized tax benefits       10,385         7,511  
Liabilities for severance pay       19,323         20,399  
Asset retirement obligation       20,856         19,142  
Other long-term liabilities       1,776         2,956  
Total liabilities       1,209,170         1,334,810  
                     
Equity:                    
The Company's stockholders' equity:            
Common stock       49         46  
Additional paid-in capital       849,223         742,006  
Retained earnings (accumulated deficit)       148,396         41,539  
Accumulated other comprehensive income (loss)       (7,667 )       (8,668 )
        990,001         774,923  
Noncontrolling interest       93,873         11,823  
Total equity       1,083,874         786,746  
Total liabilities and equity   $   2,293,044     $   2,121,556  



Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information
For the Three-Month Periods and Years Ended December 31, 2015 and 2014
(Unaudited)

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) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction cost, (vi) stock-based compensation, (vii) gain from extinguishment of liability, and (viii) gain on sale of subsidiary and property, plant and equipment. EBITDA and Adjusted EBITDA are not a measurement of financial performance or liquidity under accounting principles generally accepted in the United States of America 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 accounting principles generally accepted in the United States of America. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a company’s ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following tables reconcile net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA for the three-month periods and years ended December 31, 2015 and 2014: the quarterly table is not correct – there should be an M&A line and not share exchange, the M&A line is should be write off of exploration

    Three Months Ended December 31   Year Ended December 31
    2015   2014   2015   2014
                         
    (in thousands)   (in thousands)
Net cash provided by operating activities   $   67,060     $   34,465     $   190,025     $   213,235  
Adjusted for:                        
Interest expense, net (excluding amortization                        
of deferred financing costs)       16,231         17,604         63,802         76,970  
Interest income       (191 )       (76 )       (297 )       (312 )
Income tax provision       11,438         9,877         (15,258 )       27,608  
Adjustments to reconcile net income or loss to net cash                        
provided by operating activities (excluding                        
depreciation and amortization)       (16,169 )       (1,360 )       40,530         (57,422 )
EBITDA   $   78,369     $   60,510     $   278,802     $   260,079  
                                         
Mark to market on derivative instruments which represents swap contracts on natural gas and oil prices               (2,493 )       4,129         (6,960 )
Stock-based compensation       878         1,263         3,955         5,571  
Gain on sale of a subsidiary and property, plant and equipment                               (7,628 )
Loss from extinguishment of liability                       1,710          
Merger and acquisition transaction costs               1,000         3,800         1,000  
Write-off of unsuccessful exploration activities       1,220         7,332         1,579         15,439  
Mark to market on derivatives which represents currency forward contracts       (1,385 )       699         (2,720 )       5,172  
Adjusted EBITDA   $   79,082     $   68,311     $   291,255     $   272,673  
                                         
                         
Net cash provided by investing activities   $   (14,433 )   $   6,273     $   (90,971 )   $   (129,162 )
Net cash provided by (used in) financing activities   $   (38,249 )   $   (42,959 )   $   46,635     $   (101,197 )
                                         
                         
    Three Months Ended December 31   Year Ended December 31
    2015   2014   2015   2014
                         
    (in thousands)   (in thousands)
Net income   $   24,148     $   7,143     $   123,349     $   55,015  
Adjusted for:                        
Interest expense, net (including amortization                        
of deferred financing costs)       17,951         19,494         72,280         84,342  
Income tax provision       11,438         9,877         (15,258 )       27,608  
Depreciation and amortization       24,832         23,996         98,431         93,114  
EBITDA   $   78,369     $   60,510     $   278,802     $   260,079  
                                         
Mark to market on derivative instruments which represents swap contracts on natural gas and oil prices               (2,493 )       4,129         (6,960 )
Stock-based compensation       878         1,263         3,955         5,571  
Gain on sale of a subsidiary and property, plant and equipment                               (7,628 )
Loss from extinguishment of liability                       1,710          
Merger and acquisition transaction costs               1,000         3,800         1,000  
Write-off of unsuccessful exploration activities       1,220         7,332         1,579         15,439  
Mark to market on derivatives which represents currency forward contracts       (1,385 )       699         (2,720 )       5,172  
Adjusted EBITDA   $   79,082     $   68,311     $   291,255     $   272,673  
                                         
Ormat Technologies Contact:
Smadar Lavi
Investor Relations
775-356-9029 (ext. 65726)
slavi@ormat.com

Investor Relations Agency Contact:	
Rob Fink/Brett Maas
Hayden - IR
646-415-8972/646-536-7331
rob@haydenir.com / brett@haydenir.com

Primary Logo