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Blockchain Power Reports Q2 2019 Results

TORONTO, Aug. 29, 2019 (GLOBE NEWSWIRE) -- Blockchain Power Trust (“Blockchain Power” or the “Trust”) (BPWR-UN.V) is pleased to announce that it has released its financial results for the three and six months ended June 30, 2019. All amounts in this release are expressed in Canadian Dollars unless otherwise indicated.

Highlights

  • Energy generation from continuing operations of 37,748 megawatt hours (“MWh”) for the second quarter of 2019, representing an increase of 3,140 MWh or 9% on a year-over-year basis. 
  • For the six months ended June 30, 2019, energy generation was higher at all facilities year-over-year.  Energy generation from continuing operations of 84,698 MWh for the six months ended June 30, 2019, representing an increase of 4,867 MWh or 6% on a year-over-year basis.
  • Net income from continuing operations of $1.3 million or $0.01 per Unit for the second quarter. Net income from continuing operations of $0.04 million for the six months ended June 30, 2019 compared to a net loss of $2.5 million from continuing operations for the six months ended June 30, 2018.
  • Adjusted EBITDA1 from continuing operations of $2.6 million1 or $0.01 per Unit for the second quarter compared to $0.3 million from continuing operations for the comparable quarter in 2018.  Adjusted EBITDA from continuing operations of $4.0 million or $0.02 per Unit for the six months ended June 30, 2019 consistent with the comparative six months ended June 30, 2018. (see reconciliation of adjusted EBITDA under “Non-GAAP Measures”)
  • Revenue of $4.2 million for the second quarter of 2019, representing a decrease from $4.6 million in the second quarter of 2018.  Revenue of $9.0 million for the six months ended June 30, 2019, representing a decrease from $9.6 million for the six months ended June 30, 2018.
  • Earned operating margin (revenue less cost of sales excluding depreciation) from continuing operations of $2.5 million for the second quarter of 2019, consistent with the second quarter of 2018.  Earned operating margin from continuing operations of $6.0 million, representing an increase of 6%  from operating margin from continuing operations for the six months ended June 30, 2018.   (see reconciliation of operating margin under “Non-GAAP Measures”)
  • A decrease of 35% in general and administrative expenses and professional fees year-over-year on a year-to-date basis.
  • Generated operating cash flows from continuing operations of 2.5 million or $0.01 per Unit for the second quarter of 2019, representing an increase of 400% on a year-over-year basis. Generated operating cash flows from continuing operations $7.3 million or $0.03 per Unit for the six months ended June 30, 2019, compared to an outflow of $2.1 million from the same period in 2018.
  • Improved financial position through the generation of positive operating cash flows and asset portfolio operating to plan resulted in a positive working capital of $0.4 million compared to a working capital deficiency of $1.9 million as at December 31, 2018.

1 Includes foreign exchange gains (losses).

Colter Eadie, Chief Executive Officer of Blockchain Power Trust, commented  “We continue to focus on our renewable asset portfolio and are very pleased by the continued, consistent, and on-target performance of our assets to date.  Additionally, we are very pleased that our efforts taken to date continue to demonstrate significant improvements in the financial position of the Trust.”

For further information please contact:

Ravi Sood
Chairman
+1 647-987-7663
rsood@blockchainpower.com
J. Colter Eadie
Chief Executive Officer
+40 736-372-724
jceadie@blockchainpower.com
Betty Soares
Chief Financial Officer
+1 416-803-6760
bsoares@blockchainpower.com

About Blockchain Power

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under Blockchain Power’s issuer profile at www.sedar.com.

Forward-Looking Statements

Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. The forward-looking statements are founded on the basis of expectations and assumptions made by the Trust. Details of the risk factors relating to Blockchain Power and its business are discussed under the heading “Business Risks and Uncertainties” in Blockchain Power’s annual Management’s Discussion & Analysis for the year ended December 31, 2018, a copy of which is available on Blockchain Power’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Blockchain Power expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

NON-GAAP MEASURES

The Trust has included certain non-GAAP measures to supplement its condensed interim Consolidated Financial Statements (unaudited), which are presented in accordance with IFRS, including operating margin. 

Operating margin is calculated as cost of sales from revenues as follows:

  For the three months ended For the six months ended
   June 30, 2019
  June 30, 2018   June 30, 2019
  June 30, 2018  
Total revenue $   4,160,648   $ 4,597,028   $   9,038,124   $ 9,640,491  
Less:        
Cost of sales excluding depreciation     (1,708,345 )   (1,912,671 )      (3,027,319 )   (3,993,340 )
Operating margin $   2,452,303   $ 2,684,357   $   6,010,805   $ 5,647,151  


The following is a reconciliation of adjusted EBITDA and adjusted EBITDA per share:

  For the three months ended For the six months ended
   June 30, 2019
  June 30, 2018    June 30, 2019
  June 30, 2018  
Earnings (loss) for the period from continuing operations $           1,289,262   $           2,827,545   $   43,702   $ (2,451,900 )
Add-back:        
Interest and finance charges     582,819     1,386,503       1,811,713     3,313,308  
Income tax recovery (expense)     (53,879 )   (328,899 )     164,160     (365,620 )
Depreciation     846,968     1,679,119       2,179,571     3,310,136  
Fair value gain on debentures and conversion features     -      -       -      (1,184,248 )
(Gain) Loss on settlement of debt     -      (786,928 )     -      12,950,322  
Warrant revaluation gain     (101,042 )   (4,399,070 )     (245,019 )   (11,928,230 )
Adjusted EBITDA from continuing operations $   2,564,128   $ 378,270   $   3,954,127   $ 3,643,768  
Adjusted EBITDA per Unit from continuing operations $   0.01   $ -   $   0.02   $ 0.02  


The following is a reconciliation of operating cash from per Unit:

  For the three months ended For the six months ended
   June 30, 2019 June 30, 2018  June 30, 2019 June 30, 2018
Net provided by (used in) operating activities of continuing operations $   2,503,353 $ 4,747,562 $   7,318,630 $ (2,090,660 )
Weighted average number of Units     230,165,170   226,604,956     230,165,170   202,822,542  
Operating cash flow from continuing operations per Unit $   0.01 $ 0.02 $   0.03 $ (0.01 )
                   

The Trust believes that operating margin, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Trust.  Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other entities.  The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.  Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.