StockSelector.com
  Research, Select, & Monitor Saturday, September 23, 2017 5:45:57 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Ormat Technologies Inc$57.68($.10)(.17%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Ormat Technologies Reports Another Year with Record Revenue of $663.0 Million up 11.4% over Prior Year
   Tuesday, February 28, 2017 5:00:18 PM ET

Ormat Technologies, Inc. (ORA ) today announced financial results for the fourth quarter and full year ended December 31, 2016.

Financial Summary:

($ millions, except per share amounts)                         4Q 2016   4Q 2015   Change       2016    2015  Change
Revenues
Electricity                                                        114.6     97.8  17.2  %      436.3   375.9 16.1  %
Product                                                            51.9      73.3  (29.2 %)     226.3   218.7 3.5   %
Total revenues                                                     166.5     171.1 (2.7  %)     662.6   594.6 11.4  %
Gross profit                                                       66.6      64.1  3.9   %      270.8   218.3 24.1  %
Operating income                                                   51.2      49.1  4.4   %      201.9   164.1 23.1  %
Net income attributable to the Company’s stockholders              28.2      23.0  22.6  %      93.9    119.6 (21.5 %)
EPS                                                            $   0.56  $   0.46  21.8  %    $ 1.87  $ 2.43  (23.0 %)
Adjusted Operating income                                          51.2      49.1  4.4   %      212.9   164.1 29.7  %
Adjusted Net income attributable to the Company’s stockholders     28.2      23.0  22.6  %      109.9   70.9  55.1  %
Adjusted EPS                                                   $   0.56  $   0.46  21.8  %    $ 2.19  $ 1.44  52.1  %
Adjusted EBITDA                                                    76.9      79.1  (2.7  %)     323.8   291.3 11.2  %

Financial highlights for the full year:

-- Total revenues of $662.6 million in 2016, an increase of 11.4% from 2015;

-- Electricity segment revenues increased 16.1% to $436.3 million in 2016 from $375.9 million in 2015;

-- Product segment revenues reached record levels of $226.3 million from $218.7 million in 2015 representing a 3.5% increase;

-- Electricity generation increased 11.6%, compared to the full year 2015, from 4.8 million MWh to 5.4 million MWh;

-- Gross margin increased to 40.9% in 2016 compared to 36.7% for 2015;

-- Operating income increased 23.1% to $201.9 million compared to $164.1 million in the full year of 2015; exclusive of one-time settlement expenses, operating income grew 29.7%;

-- Adjusted EBITDA grew 11.2% to $323.8 million in 2016;

-- Net income attributable to the company’s shareholders was $93.9 million or $1.87 per diluted share in 2016, compared to $119.6 million or $2.43 per diluted share in 2015. Adjusted Net income attributable to the company’s shareholders was $109.9 million or $2.19 per diluted share in 2016 compared to $70.9 million or $1.44 per diluted share in 2015; an increase of 55.1% and 52.1%, respectively;

-- Declared a quarterly dividend of $0.17 per share for the fourth quarter of 2016;

-- Product segment backlog increased to $251.0 million.

Annual adjusted operating income excludes $11 million of one-time settlement expenses recorded in the third quarter of 2016.

Adjusted EPS excludes $11 million of one-time settlement expenses and $5 million one-time prepayment fees, both recorded in the third quarter of 2016 and $48.7 million tax benefits and related expenses recorded in the third quarter 2015.

Adjusted net income attributable to the company’s stockholders excludes $11 million of one-time settlement expenses and $5 million one-time prepayment fees, both recorded in the third quarter of 2016 and $48.7 million tax benefits and related expenses recorded in the third quarter 2015.

Operational and business developments for the full year 2016 and subsequent to year end:

-- Started construction to expand Olkaria III complex in Kenya by additional 10 MW and increase the complex capacity to 150 MW during 2018;

-- Signed an agreement to acquire the business and assets of Viridity Energy, Inc. and enter the growing energy storage and demand response markets;

-- Entered into a partnership transaction with a financial investor to efficiently monetize the federal tax incentives relating to five geothermal power plants located in eastern Nevada for an initial purchase price of $62.1 million and additional future installments totaling up to $21.0 million through 2022;

-- Closed $50.0 million loan facility agreement with Deutsche Investitions-und Entwicklungsgesellschaft Mbh (DEG) to finance our investment in the 29MW plant 4 in the Olkaria III complex, which commenced operation in February 2016;

-- Signed a $36 million engineering, procurement and construction (EPC) contract with Cyrq Energy, Inc. to provide one ORMAT(R) Energy Converter (OEC) at Cyrq’s Soda Lake geothermal power project in northern Nevada;

-- Closed private placement of $92.5 million senior secured notes to refinance the Don A. Campbell Phase I geothermal power project;

-- Signed a 25-year Power Purchase Agreement with Southern California Public Power Authority (SCPPA) to deliver electricity from the company’s Ormesa geothermal complex in Imperial Valley, Calif. beginning November 30, 2017;

-- Closed follow-on sale of 36.75% equity interest to Northleaf for $44.2 million to monetize the second phase of the Don A. Campbell geothermal power plant;

-- Raised $204 million of senior unsecured bonds at an average cost of 4.2%; Proceeds, together with other corporate funds, refinanced $250 million of high cost debt;

-- Closed the acquisition of the Bouillante Geothermal Power Plant on the Island of Guadeloupe;

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

-- Signed an agreement to jointly build, own, and operate the Rabbit Hill Energy Storage Project located in Georgetown, Texas which moves the company, for the first time, into the energy storage arena.

"This was a strong ending to an excellent year for Ormat, as we delivered another year of record revenue and adjusted EBITDA with double-digit growth and strong execution on all our key metrics," commented Isaac Angel, Chief Executive Officer. "The new capacity from the fourth plant at our Olkaria III complex and the contribution of the Bouillante geothermal power plant we acquired in 2016, together with the strong performance of the McGinness Hills and Don A. Campbell complexes which came on line during 2015, increased our electricity segment full year revenues and significantly improved our gross profits. The strength of our electricity and our products segment outperformed our estimates. Our efforts to reduce costs and shorten the delivery lead time enabled us to reap the benefits also in the Products segment where we successfully secured new contracts that supported record revenues in 2016 and robust backlog for 2017. During the fourth quarter we finalized several transactions and raised approximately $200 million net that will reduce our overall cost of debt, strengthen our balance sheet and improve our cash position to facilitate our growth plans."

Mr. Angel continued, "We are particularly excited about the pending acquisition of the business and assets of Viridity Energy, Inc. (VEI), a privately held company with nearly a decade of expertise and leadership in demand response, energy management and storage. This acquisition is scheduled to close shortly, and we intend to leverage Viridity to accelerate long term growth while expanding into new geographies and targeting a broader potential customer base. This acquisition marks one of many achievements we have accomplished as we execute our strategic plan designed to position us as a leading renewable energy provider."

Guidance

Mr. Angel added, "We expect full-year 2017 total revenues between $680.0 million and $700.0 million with electricity segment revenues between $460.0 million and $470.0 million and product segment revenues between $220.0 million and $230.0 million. We expect 2017 Adjusted EBITDA between $340 million and $350 million for the full year. We expect annual Adjusted EBITDA attributable to minority interest to be approximately $23.0 million."

Dividend

On February 28, 2017, ORMAT’s Board of Directors approved a payment of a quarterly dividend of $0.17 per share pursuant to the company’s dividend policy. The dividend will be paid on March 29, 2017 to shareholders of record as of the close of business on March 15, 2017. In addition, the company expects to pay quarterly dividends of $0.08 per share in the next three quarters.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">Conference Call Details</span>

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. ET on Wednesday, March 1, 2017. 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 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
Canada:                                  1-855-669-9658
International Toll:                      1-412-317-0088
Replay Access Code:                      10100684

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">About Ormat Technologies</span>

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 73 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 474 employees in the United States and over 700 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 2,200 MW of gross capacity. Ormat’s current 713 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, and Guadeloupe.

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">Ormat’s Safe Harbor Statement</span>

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, 2016.

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 and Twelve Month Periods Ended December 31, 2016 and 2015
(Unaudited)
                                                                                        Three Months Ended December 31         Twelve Months Ended December 31
                                                                                        2016             2015                  2016             2015
                                                                                        (In thousands, except per share data)  (In thousands, except per share data)
     Revenues:
     Electricity                                                                        $     114,628    $     97,796          $     436,292    $     375,920
     Product                                                                                  51,891           73,278                226,299          218,724
     Total revenues                                                                           166,519          171,074               662,591          594,644
     Cost of revenues:
     Electricity                                                                              69,163           63,008                261,573          242,612
     Product                                                                                  30,719           43,927                130,223          133,753
     Total cost of revenues                                                                   99,882           106,935               391,796          376,365
     Gross profit                                                                             66,637           64,139                270,795          218,279
     Operating expenses:
     Research and development expenses                                                        732              668                   2,762            1,780
     Selling and marketing expenses                                                           4,288            3,978                 16,424           16,077
     General and administrative expenses                                                      10,085           9,185                 46,710           34,782
     Write-off of unsuccessful exploration activities                                         303              1,220                 3,017            1,579
     Operating income                                                                         51,229           49,088                201,882          164,061
     Other income (expense):
     Interest income                                                                          140              191                   971              297
     Interest expense, net                                                                    (15,828 )        (18,142 )             (67,389 )        (72,577 )
     Derivatives and foreign currency transaction gains (losses)                              (2,942  )        (981    )             (5,534  )        (1,622  )
     Income attributable to sale of tax benefits                                              4,123            6,514                 16,503           25,431
     Other non-operating expense, net                                                         (39     )        (468    )             (5,345  )        (1,991  )
     Income before income taxes and equity in
     losses of investees                                                                      36,683           36,202                141,088          113,599
     Income tax provision (benefit)                                                           (2,450  )        (11,438 )             (31,837 )        15,258
     Equity in losses of investees, net                                                       (3,001  )        (616    )             (7,735  )        (5,508  )
     Net income                                                                               31,232           24,148                101,516          123,349
     Net income attributable to noncontrolling interest                                       (3,002  )        (1,160  )             (7,586  )        (3,776  )
     Net income attributable to the Company’s stockholders                              $     28,230     $     22,988          $     93,930     $     119,573
     Earnings per share attributable to the Company’s stockholders - Basic and diluted:
     Basic:
     Net Income                                                                         $     0.57       $     0.47            $     1.90       $     2.46
     Diluted:
     Net Income                                                                         $     0.56       $     0.46            $     1.87       $     2.43
     Weighted average number of shares used in computation of earnings per share
     attributable to the Company’s stockholders:
     Basic                                                                                    49,647           49,074                49,469           48,562
     Diluted                                                                                  50,293           49,668                50,140           49,187
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2016 and 2015
(Unaudited)
                                                                                      December 31,         December 31,
                                                                                      2016                 2015
                                                                                           (In thousands)
     ASSETS
     Current assets:
     Cash and cash equivalents                                                        $    230,214         $    185,919
     Restricted cash, cash equivalents and marketable securities                           34,262               49,503
     Receivables:
     Trade                                                                                 80,807               55,301
     Other                                                                                 17,482               7,885
     Inventories                                                                           12,000               18,074
     Costs and estimated earnings in excess of billings on uncompleted contracts           52,198               25,120
     Prepaid expenses and other                                                            45,867               33,334
     Total current assets                                                                  472,830              375,136
     Deposits and other                                                                    18,553               17,968
     Deferred charges                                                                      43,773               42,811
     Property, plant and equipment, net                                                    1,556,378            1,559,335
     Construction-in-process                                                               306,709              248,835
     Deferred financing and lease costs, net                                               3,923                4,022
     Intangible assets, net                                                                52,753               25,875
     Goodwill                                                                              6,650                --
     Total assets                                                                     $    2,461,569       $    2,273,982
     LIABILITIES AND EQUITY
     Current liabilities:
     Accounts payable and accrued expenses                                            $    91,650          $    91,955
     Billings in excess of costs and estimated earnings on uncompleted contracts....       31,630               33,892
     Current portion of long-term debt:
     Limited and non-recourse:
     Senior secured notes                                                                  32,234               29,930
     Other loans                                                                           21,495               21,495
     Full recourse                                                                         12,242               11,229
     Total current liabilities                                                             189,251              188,501
     Long-term debt, net of current portion:
     Limited and non-recourse:
     Senior secured notes                                                                  350,388              294,476
     Other loans                                                                           261,845              275,888
     Full recourse:
     Senior unsecured bonds                                                                203,577              249,698
     Other loans                                                                           57,063               18,687
     Accumulated losses of unconsolidated company in excess of investment                  11,081               8,100
     Liability associated with sale of tax benefits                                        54,662               11,665
     Deferred lease income                                                                 54,561               58,099
     Deferred income taxes                                                                 35,382               32,654
     Liability for unrecognized tax benefits                                               5,738                10,385
     Liabilities for severance pay                                                         18,600               19,323
     Asset retirement obligation                                                           23,348               20,856
     Other long-term liabilities                                                           21,294               1,776
     Total liabilities                                                                     1,286,790            1,190,108
     Reedemable non-controlling interest                                                   4,772                --
     Equity:
     The Company’s stockholders’ equity:
     Common stock                                                                          50                   49
     Additional paid-in capital                                                            869,463              849,223
     Retained earnings (accumulated deficit)                                               216,644              148,396
     Accumulated other comprehensive income (loss)                                         (7,732    )          (7,667    )
                                                                                           1,078,425            990,001
     Noncontrolling interest                                                               91,582               93,873
     Total equity                                                                          1,170,007            1,083,874
     Total liabilities and equity                                                     $    2,461,569       $    2,273,982

Ormat Technologies, Inc. and Subsidiaries

Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information

For the Three and Twelve Month Periods Ended December 31, 2016 and 2015

(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 or losses from extinguishment of debt, (viii) gain or losses on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. 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 and twelve month periods ended December 31, 2016 and 2015.

                                                                          Three Months Ended December 31        Twelve Months Ended December 31
                                                                          2016               2015               2016                2015
                                                                          (in thousands)                        (in thousands)
 Net cash provided by operating activities                                $    1,258         $    67,060        $    159,285        $    190,025
 Adjusted for:
 Interest expense, net (excluding amortization
 of deferred financing costs)                                                  13,284             16,231             60,553              63,802
 Interest income                                                               (140    )          (191    )          (971     )          (297    )
 Income tax provision                                                          2,450              11,438             31,837              (15,258 )
 Adjustments to reconcile net income or loss to net cash
 provided by operating activities (excluding
 depreciation and amortization)                                                58,386             (16,169 )          48,208              40,530
 EBITDA                                                                   $    75,238        $    78,369        $    298,912        $    278,802
 Mark-to-market gains or losses from accounting for derivatives                (478    )          (1,385  )          319                 1,409
 Stock-based compensation                                                      1,774              878                5,157               3,955
 Gains or losses on sale of subsidiary and property, plant and equipment       --                 --                 (686     )          --
 Gains or losses from extinguishment of debt                                   --                 --                 5,780               1,710
 Termination fees                                                              --                 --                 --                  --
 Impairment of long-lived assets                                               --                 --                 --                  --
 Merger and acquisition transaction cost                                       100                --                 335                 3,800
 Settlement expenses                                                           --                 --                 11,000              --
 Write-off of unsuccessful exploration activities                              303                1,220              3,017               1,579
 Adjusted EBITDA                                                          $    76,937        $    79,082        $    323,834        $    291,255
 Net cash used in investing activities                                    $    (33,342 )     $    (14,433 )     $    (158,531 )     $    (90,971 )
 Net cash provided by (used in) financing activities                      $    172,232       $    (38,249 )     $    43,541         $    46,635
                                                                          Three Months Ended December 31        Twelve Months Ended December 31
                                                                          2016               2015               2016                2015
                                                                          (in thousands)                        (in thousands)
 Net income                                                               $    31,232        $    24,148        $    101,516        $    123,349
 Adjusted for:
 Interest expense, net (including amortization
 of deferred financing costs)                                                  15,688             17,951             66,418              72,280
 Income tax provision                                                          2,450              11,438             31,837              (15,258 )
 Depreciation and amortization                                                 25,868             24,832             99,141              98,431
 EBITDA                                                                   $    75,238        $    78,369        $    298,912        $    278,802
 Mark-to-market gains or losses from accounting for derivatives                (478    )          (1,385  )          319                 1,409
 Stock-based compensation                                                      1,774              878                5,157               3,955
 Gains or losses on sale of subsidiary and property, plant and equipment       --                 --                 (686     )          --
 Gains or losses from extinguishment of debt                                   --                 --                 5,780               1,710
 Termination fees                                                              --                 --                 --                  --
 Impairment of long-lived assets                                               --                 --                 --                  --
 Merger and acquisition transaction cost                                       100                --                 335                 3,800
 Settlement expenses                                                           --                 --                 11,000              --
 Write-off of unsuccessful exploration activities                              303                1,220              3,017               1,579
 Adjusted EBITDA                                                          $    76,937        $    79,082        $    323,834        $    291,255
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EPS as adjusted
For Twelve Month Periods Ended December 31, 2016 and 2015
(Unaudited)
                                                                                     Year Ended December 31
                                                                                     2016             2015
                                                                                     (in thousands)
Net income attributable to the Company’s stockholders                                $       93,930   $       119,573
One-time settlement expenses                                                                 11,000           --
One-time prepayment fees                                                                     5,000            --
One-time tax benefit                                                                         --               (48,700 )
Adjusted net income attributable to the Company’s stockholders                       $       109,930  $       70,873
Weighted average number of shares diluted used in computation of earnings per share          50,140           49,187
attributable to the Company’s stockholders:
Adjusted earnings per share attributable to the Company’s stockholders diluted:              2.19             1.44
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

https://resource.globenewswire.com/Resource/Download/0d7fb068-4d6d-458a-a4e1-1ece74203e88?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzY3MDUxNjE=" alt="" width="1" height="1"/>



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.