Ram Power announces record financial results for Q1 2012.

San Jacinto-Tizate, geothermal power plant, Ram Power/ Polaris Geothermal Nicaragua (source: Ram Power)
Alexander Richter 16 May 2012

Geothermal developer Ram Power Corp. announces a major improvement in the financial performance of the company in its financial results released for the first quarter of 2012. With $6.3 million in revenue and an EBITDA of $2.7 million, the company clearly improves its position for further growth.

In a release by the company, “Ram Power, Corp. announces its operating results for the first quarter ended March 31, 2012.

The achievement of commercial operation of the Phase I expansion at San Jacinto led to a major improvement in the financial performance of the Company. With $6.3 million in revenue and $2.7 million of earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter, the Company took a major step toward generating the levels of cash flow necessary to be able to allocate resources to pipeline projects including Casita and the Geysers. In addition, cost controls implemented in the second half of 2011 have contributed to the increased level of profitability.

Additional highlights for the three months ended March 31, 2012 include:

  • In January, the Phase I expansion at San Jacinto was placed into commercial operation;
  • Total revenue for the three months was $6.3 million, up $5.3 million from the prior year quarter;
  • EBITDA for the three months was $2.7 million, up $8.3 million from the prior year quarter;
  • General and administrative expenses for the three months decreased $3.2 million, or 53%, from the prior year quarter; and
  • The Company entered into a letter of intent with SNC-Lavalin for the construction of the Geysers Project.

For the three months ended March 31, 2012, the Company reported revenue of $6.3 million and a net loss of $2.4 million ($0.01 per share) versus revenue of $1 million and a net loss of $5.8 million ($0.04 per share) for the same period of the prior year. Increased revenue resulted from the San Jacinto-Tizate Phase I expansion being placed in service in January 2012.

EBITDA increased to $2.7 million for the current quarter versus negative EBITDA of $5.6 million in the prior year’s comparable period. The $8.3 million increase in EBITDA resulted from a $5.1 million increase in gross profit from San Jacinto operations, and a $3.2 million decrease in general and administrative expenses. Although EBITDA is a non-GAAP measure, the Company believes that many of its financial readers find it to be a useful in assessing the Company’s performance.

For the current period, the Company used $3.8 million for operating activities and $20.7 million for additions to geothermal properties and capital assets, including $20 million for the Phase I and II San Jacinto-Tizate expansion and $0.7 million for other exploration and development projects, with $21 million provided by the San Jacinto Phase II credit facility. At March 31, 2012, the Company had free cash of approximately $53.6 million, of which $40.9 million was held for use in the San Jacinto project.

Concurrent with today’s release, Shuman Moore, President and CEO of Ram Power, stated, “We are proud of the consistent operational results to date of our 36 MW net Phase I expansion of San Jacinto-Tizate, which commenced commercial operations this past January. Equally important, the Company continues to develop the San Jacinto-Tizate Phase II, 36 MW net expansion on time and on budget which when completed by year-end will provide another significant increase to revenue and EBITDA for fiscal year 2013. In addition, I am very pleased with the progress we have made with the Geysers project, and we are looking forward to finalizing the EPC contract for this project with SNC-Lavalin in the near term.”

Source: Company release via Marketwatch