Adjusted net income(1) of US$1.4 million compared to an adjusted net loss of US$0.8 million in the prior year
First quarter 2012 Revenue of US$10.7 million, up 48% from prior year
First quarter 2012 EBITDA of US$9.1 million, up 82% from prior year
Etrion Corporation ("Etrion" or the "Company") (ETX.TO)(ETX.ST), an independent solar power producer, today released its condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the three months ended March 31, 2012.
First Quarter 2012 Highlights
-- Production: Produced 20.1 million (2011: 12.2 million) kilowatt-hours of solar electricity from seven solar power projects, comprised of seventeen solar power plants. -- Revenue: Generated solar electricity revenues of US$10.7 million (2011: US$7.3 million). -- EBITDA: Recognized earnings before interest, tax, depreciation and amortization ("EBITDA") of US$9.1 million (2011: US$5.0 million). -- Working Capital: Closed the first quarter of 2012 with a cash balance of US$38.2 million and positive working capital of US$21.9 million.
Marco A. Northland, the Company's Chief Executive Officer, commented: "With a fully-funded solar portfolio of 60 megawatts ("MW"), we have substantial revenues and cash flows from operations and our solar parks continue to perform above budget. We look forward to entering the season of higher solar irradiation."
Mr. Northland continued: "2012 continues to be an exciting year as we pursue our plans to diversify into new markets, particularly in the Americas and increase our installed capacity. We are making excellent progress on our development opportunities in Chile and look forward to providing an update on the new market and development pipeline next quarter. Etrion is well positioned to expand, diversify and achieve sustainable growth from market-driven energy contracts with industrial clients in markets with high electricity prices and attractive solar irradiation."
During the three months ended March 31, 2012, the Company reported a net loss of US$2.3 million (loss per share of US$0.01) compared to a net loss of US$1.5 million (loss per share of US$0.01) for the three months ended March 31, 2011.
The net results were adversely affected by non-cash items of US$3.7 million, including depreciation and amortization of US$5.1 million offset by other income of US$1.4 million associated with Mr. Northland's previously held 10% equity interest in the Company's subsidiary Solar Resources Holding Sarl. Excluding these non-cash items, the Company's net income(1) for the three months ended March 31, 2012, would have been US$1.4 million.
Solar-related revenues are subject to seasonality over the year due to the variability of daily sun hours in the summer versus winter months. However, for the three months ended March 31, 2012, the Company's solar power projects performed approximately 16% above budget.
Etrion Corporation is an independent power producer that owns and operates renewable assets. Etrion currently owns approximately 60 MW of operational, ground-based solar photovoltaic power plants in Italy. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden (ticker symbol "ETX"). Etrion's largest shareholder is the Lundin family, which owns approximately 22% of the Company's shares through various trusts.
Note: The capacity of power plants in this release is described in approximate MW on a direct current ("DC") basis, also referred to as megawatt-peak ("MWp").
This news release includes non-IFRS measures not defined under IFRS, specifically adjusted net income/loss. Non-IFRS measures have no standardized meaning prescribed under IFRS and therefore such measures may not be comparable with those used by other companies. Adjusted net income/loss represents the Company's performance during the period on a cash-flow basis, excluding non-cash items, such as depreciation, share-based compensation, non-recurring other income/expenses and fair value movements associated with derivative financial instruments. Refer to Etrion's MD&A for the three months ended March 31, 2012, for a reconciliation of the adjusted net income reported during the period.
This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to solar electricity revenue which is subject to confirmation of both the applicable feed-in-tariff ("FiT") to which the Company is entitled by the state-owned company Gestore Servizi Energetici and the applicable spot market price by the local utilities for electricity sales to the national grid and statements relating to the Company's growth plans) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions including, without limitation, confirmation of the applicable FiT and spot market price for electricity sales. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the lack of confirmation or reduction of the applicable FiT and the spot market price for electricity sales by the designated entities and the risk that the Company may not be able to identify and/or acquire additional renewable energy projects on economic terms.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
(1) Adjusted net income is a non-International Financial Reporting Standard ("IFRS") measure (refer to "Non-IFRS Measures" of this press release).