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Jade Power Reports Q3 2019 Results and Announces Normal Course Issuer Bid

TORONTO, Nov. 29, 2019 (GLOBE NEWSWIRE) -- Jade Power Trust (“Jade Power” or the “Trust”) (TSXV:JPWR.UN) is pleased to announce that it has released its financial results for the three and nine months ended September 30, 2019. All amounts in this release are expressed in Canadian Dollars unless otherwise indicated.

Highlights1

  • Record energy generation of 30,572 megawatt hours (“MWh”) for the third quarter of 2019, representing an increase of 2,366 MWh or 8% on a year-over-year basis. 
  • Record energy generation of 115,270 MWh for the nine months ended September 30, 2019, representing an increase of 7,233 MWh or 7% on a year-over-year basis.
  • Revenue of $4.0 million for the third quarter of 2019, representing an increase of 11% from $3.6 million in the third quarter of 2018.  Revenue of $13.0 million for the nine months ended September 30, 2019, representing a 2% decrease from $13.2 million for the nine months ended September 30, 2018.
  • Earned operating margin (revenue less cost of sales excluding depreciation) of $1.7 million for the third quarter of 2019, compared to $2.1 million in the third quarter of 2018.  Earned operating margin of $7.7 million for the nine months ended September 30, 2019, consistent with $7.7 million for the nine months ended September 30, 2018. (see reconciliation of operating margin under “Non-GAAP Measures”)
  • Adjusted EBITDA of $2.1 million2, or $0.01 per Unit, for the third quarter of 2019 compared to $1.2 million, or $0.01 per Unit, for the comparable quarter in 2018, representing a 72% increase in total dollars period-over-period.  Adjusted EBITDA of $6.1 million, or $0.03 per Unit, for the nine months ended September 30, 2019 compared to $5.2 million, or $0.02 per Unit, for the nine months ended September 30, 2018. (see reconciliation of adjusted EBITDA under “Non-GAAP Measures”)
  • A decrease of 33% in general and administrative expenses and professional fees year-over-year on a year-to-date basis.
  • Operating cash flows of $0.4 million compared to $1.1 million for the comparable quarter of 2018.  Operating cash flows of $7.7 million or $0.03 per Unit for the nine months ended September 30, 2019, compared to an outflow of $1.0 million for the same period in 2018.

The Trust is also pleased to announce that the board of directors (the “Board”) of Jade Power Administrator Inc., the administrator of the Trust, has approved the purchase, for cancellation, of up to 11,525,131 Units, representing 5% of the issued and outstanding Units, over a 12-month period by way of the implementation of a normal course issuer bid (the “NCIB”).  All purchases made pursuant to the NCIB will be made through the facilities of the TSX Venture Exchange in open market transactions or by such other means as may be permitted under applicable securities laws and the policies of the TSX Venture Exchange.

Management of the Trust and the Board believe that the current market price of the Units does not adequately reflect their value and that the purchase of Units under the NCIB is in the best interests of the Trust, a desirable use of its available cash, and will enhance Unitholder value in general.

The implementation and commencement of the NCIB is subject to the approval of the TSX Venture Exchange. Upon receipt of such approval, additional details regarding the NCIB will be announced by the Trust.

Colter Eadie, Chief Executive Officer of Jade Power, commented, “We are very pleased with the record performance of our renewable asset portfolio and the financial improvements we have demonstrated over the course of 2019.   Management remains focused on maximizing the long-term value of the Trust through the optimization of our portfolio.  Management and the Board of Directors have also reviewed options with respect to the surplus cash being generated by the operations of the Trust and have concluded that the most accretive use of this cash is to repurchase Units through a normal course issuer bid.  We believe that an NCIB will improve liquidity in the Units and be an accretive use of cash that will benefit Unitholders in the long term."

For further information please contact:

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

About Jade 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 Jade 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 Jade Power and its business are discussed under the heading “Business Risks and Uncertainties” in the Trust’s annual Management’s Discussion & Analysis for the year ended December 31, 2018, a copy of which is available on Jade 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, Jade 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 nine months ended
   September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Total revenue $   4,008,238   $   3,572,848   $   13,046,362   $   13,213,339  
Less:        
Cost of sales excluding depreciation     (2,310,254 )     (1,501,729 )     (5,337,573 )     (5,495,069 )
Operating margin $   1,697,984   $   2,071,119   $   7,708,789   $   7,718,270  
                         

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

     
  For the three months ended For the nine months ended
   September 30, 2019  September 30, 2018  September 30, 2019  September 30, 2018
Earnings (loss) for the period from continuing operations
$
 
1,444,396
 
$

(4,281,477

)
$ 1,488,098   $ (6,733,377 )
Add-back:        
Interest and finance charges   294,428     753,872     2,106,141     4,067,180  
Income tax recovery (expense)   (53,199 )   (70,118 )   110,961     (435,738 )
Depreciation     526,843     1,023,268     2,706,414     4,333,404  
Fair value gain on debentures and conversion features     -         -        -      (1,184,248 )
(Gain) Loss on settlement of debt   (107,986 )     -        (107,986  )   12,950,322  
Transaction Costs     -        -        -        285,008  
Warrant revaluation gain     2,458       (865,833 )   (242,561 )   (12,794,063 )
Impairment charge     -      4,669,070       -      4,669,070  
Adjusted EBITDA from continuing operations $ 2,106,940   $ 1,228,782   $ 6,061,067   $ 5,157,558  
Adjusted EBITDA per Unit from continuing operations $   0.01   $   0.01   $   0.03   $   0.02  
                         

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

     
  For the three months ended For the nine months ended
   September 30, 2019 September 30, 2018  September 30, 2019 September 30, 2018
Net provided by (used in) operating activities of continuing operations $   357,907   $   1,086,559   $   7,676,536   $   (1,004,101 )
Weighted average number of Units     230,361,711       230,158,108       230,230,925       220,191,848  
Operating cash flow from continuing operations per Unit $   0.00   $   0.00   $   0.03   $   (0.00 )
                         

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.

                                                            

1 From continuing operations of the Trust.

2 Includes foreign exchange gains (losses).