Vancouver, BC – April 30, 2010 – Run of River Power Inc. (“ROR” or “the Company”) (TSX-V: ROR) today announced financial and operating results for the year ended December 31, 2009. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed to SEDAR and posted on ROR’s website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.
Financial Summary
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Period ended December
31
|
3 months
|
12 months
| ||
|
($000’s except per share & generation amounts)
|
2009
|
2008
|
2009
|
2008
|
|
|
|
|
|
|
|
Electricity sales
|
274
|
431
|
1,371
|
1,681
|
|
EBITDA1
|
(381)
|
(187)
|
(857)
|
(814)
|
|
Net loss
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(594)
|
(511)
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(2,075)
|
(2,021)
|
|
Basic and diluted loss
per share
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(0.01)
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(0.01)
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(0.03)
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(0.03)
|
|
Cash flow used in
operations
|
(477)
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(346)
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(1,400)
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(1,406)
|
|
Total assets
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33,235
|
32,422
|
33,235
|
32,422
|
|
Generation (MWh)
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4,713
|
7,459
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23,566
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29,074
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1 EBITDA is earnings before interest, taxes, depreciation and
amortization. It is not a measure under Canadian Generally Accepted Accounting
Principles ("GAAP") and may not be comparable to similar measures
presented by other companies. Refer to Non-GAAP measures section of the
MD&A for an explanation and reconciliation.
Operating Results
During 2009, ROR’s electricity sales of $1,370,869 decreased by $310,590 or 18.5% from 2008 sales of $1,681,459 as a direct result of a reduction in electricity generated to 23,566 MWh from 29,074 MWh. The Company generated electricity revenue of $274,177 in the fourth quarter of 2009, compared to $431,363 in the same quarter of 2008. The decrease in electricity generation and sales for both the year the quarter are attributable to decreased production at the Brandywine Creek power facility, predominantly due to less than expected precipitation during the year.
On October 31, 2009, an outage at a BC Hydro substation led to an outage at the Brandywine facility that resulted in damage to one of its two generators. The damaged generator is expected to be back in service in late May 2010. There was no significant impact on revenue in the year as a result of this outage because seasonal water flows at Brandywine Creek in the last two months of the year can typically be captured by one generator during that period. The Company’s insurers have assessed the facility and repairs and business interruption are expected to be covered by insurance, subject to associated deductibles.
EBITDA for 2009 was negative $857,149, or $43,102 less than the same period in 2008. EBITDA for the fourth quarter of 2009 was negative $380,987 compared to EBITDA of negative $186,845 for the same period last year.
ROR recorded a net loss of $2.1 million for 2009, compared to a net loss of $2.0 million for 2008. The Company recorded a net loss of $593,846 for the fourth quarter of 2009, compared to a net loss of $511,479 in 2008. Funds used in operations totaled $1.4 million for each year ended December 31, 2009 and 2008.
Financial Position
ROR spent approximately $2.0 million during the year on development initiatives divided equally between its run of river projects and its biomass projects. These expenditures were funded from internal resources. In the latter part of the year, the Company completed two private placements for net aggregate proceeds of $3.3 million.
Subsequent to fiscal year end, BC Hydro selected ROR for an award of an Electricity Purchase Agreement for the 25 MW Mamquam Power Project located on Skookum Creek. Accordingly, the Company has commenced evaluating alternatives for raising the necessary equity capital and project debt totaling approximately $95 million.
Non-GAAP Measures
The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles (“GAAP”) in Canadian dollars.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio
of run-of-river and biomass projects in British Columbia (BC). The
Company operates an Eco Logo© certified hydroelectric power generation
station at Brandywine Creek, near Whistler, BC that generates cash flow
under a 20-year contract with BC Hydro. ROR Power is well positioned
for profitable growth through the company’s high-quality power
generation initiatives. ROR Power’s total development potential, in
excess of 740 MW, represents a significant opportunity to help BC meet
its rising demand for clean, sustainable power and achieve energy self
sufficiency by 2016.
Forward-Looking Statements
Statements in this release which describe Run of River Power Inc.'s
intentions, expectations or predictions, or which relate to matters
that are not historical facts are forward-looking statements. These
forward-looking statements involve unknown risks and uncertainties
which may cause the actual results, performances or achievements of Run
of River Power Inc. to be materially different from any future results,
performances or achievements expressed in or implied by such
forward-looking statements. Run of River Power Inc. may update or
revise any forward-looking statements, whether as a result of new
information, future events or changing market and business conditions
and will update such forward-looking statements as required pursuant to
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information Contact
Jako Krushnisky
President and CEO
Tel: (604) 946-9232
jako@runofriverpower.com
Vick Dusik
Chief Financial Officer
Tel: (604) 946-9232
vsdusik@runofriverpower.com