TORONTO, May 6, 2019 /CNW/ - Polaris Infrastructure Inc.
(TSX: PIF) ("Polaris Infrastructure" or the "Company"), a
Toronto-based company engaged in
the operation, acquisition and development of renewable energy
projects in Latin America, is
pleased to report its financial and operating results for the
quarter ended March 31, 2019. This
earnings release should be read in conjunction with Polaris
Infrastructure's financial statements and management's discussion
and analysis ("MD&A"), which are available on the Company's
website at www.polarisinfrastructure.com and have been posted on
SEDAR at www.sedar.com. The dollar figures below are
denominated in US Dollars unless noted otherwise.
HIGHLIGHTS
- Strong power generation: The San Jacinto project
generated 139 GWh (net) (an average of 64.3 MW (net)), resulting in
revenue of $18.6 million for the
three months ended March 31, 2019,
versus revenue of $14.7 million on
generation of 116 GWh (net) (an average of 53.9 MW (net)) in the
prior year period. The 27% revenue increase was due to higher
average production in the first quarter of 2019, the impact of the
3% annual tariff increase and a $0.4
million contribution from Canchayllo. The 5 MW capacity
Canchayllo facility produced total net 8.86 MWh for the
quarter.
- Strong cash flow generation: The Company generated
Adjusted EBITDA (a non-GAAP measure) of $15.9 million in the three months ended
March 31, 2019, a 30% increase from
the prior year period, reflecting revenue growth with ongoing
control of costs. See Use of Non-GAAP Measures section below for
reconciliation of Adjusted EBITDA to Total income (loss) and
comprehensive income (loss).
- Continued construction progress in Peru: The Company continues to execute on
its build-out and completion of the El Carmen and 8 de Agosto
projects acquired October 30, 2018.
Progress continues towards a COD of October
30, 2019 with ongoing progress involving tunnel,
transmission line easement & installation, forced penstock,
powerhouse, access road and valves chamber completion. Both
projects are currently at approximately total 80% completion.
- Successful conclusion of annual turbine
maintenance: Comprehensive preventative maintenance was
completed on the Unit 4 turbine at the San Jacinto project over the
course of approximately two and a half weeks in April
2019. This exercise was completed on schedule and on budget
and leaves the Company well-positioned for consistent turbine
performance throughout the balance of fiscal 2019, given that the
Unit 3 turbine was serviced in early 2018.
FINANCIAL OVERVIEW
The financial results of Polaris Infrastructure for the three
months ended March 31, 2019 and 2018
are summarized below:
|
|
|
|
Three months
ended
|
(all $ figures in
thousands except income (loss) per share)
|
March 31,
2019
|
March 31,
2018
|
Average
production
|
64.3 MW
(net)
|
53.9 MW
(net)
|
Total
revenue
|
$
|
18,601
|
$
|
14,730
|
Adjusted EBITDA
(1)
|
15,875
|
12,329
|
Finance
costs
|
(4,571)
|
(4,239)
|
Total earnings
attributable to Owners of the Company
|
3,380
|
512
|
|
|
|
Basic earnings per
share attrbutable to owners of the Company
|
$0.21
|
$0.03
|
|
|
|
Diluted earnings per
share attrbutable to owners of the Company
|
$0.20
|
$0.03
|
|
|
|
|
|
|
|
As at
March 31, 2019
|
As at
December 31, 2018
|
Total
assets
|
$
|
463,636
|
$
|
467,858
|
Long-term
debt
|
169,194
|
172,743
|
Total
liabilities
|
263,950
|
269,409
|
Cash
|
33,011
|
37,809
|
Working
capital
|
16,204
|
13,755
|
|
|
|
(1) Refer to Use
of Non-GAAP Measuressection for further details with respect to
calculation of Adjusted EBITDA.
|
For the three months ended March 31,
2019, the Company reported revenue of $18.6 million and Adjusted EBITDA of $15.9
million, compared to revenue of $14.7
million and Adjusted EBITDA of $12.3 million, for the
same period in 2018. The increase in revenue resulted from the 3%
annual tariff increase combined with a 20% increase in net power
generation at the San Jacinto project as well as contribution from
our newest Peruvian facility Canchayllo. The improvement in
Adjusted EBITDA reflects increased contribution from the San
Jacinto and Canchayllo plants combined with continued management of
costs. See Use of Non-GAAP Measures section below for
reconciliation of Adjusted EBITDA to Total loss and comprehensive
loss.
For the quarter ended March 31,
2019, the Company had net operating cash inflows of
$8.1 million, net investing cash
outflows of $6.9 million and net
financing cash outflows of $5.9
million. At March 31, 2019,
the Company had cash of $33.0
million.
The continued growth in cash flow generation at San Jacinto is
reflected in these numbers and will provide the basis to continue
to grow and diversify" noted Marc
Murnaghan, Chief Executive Officer of Polaris
Infrastructure. "The construction of the two projects in
Peru is in full mobilization now
and we expect to complete construction by the end of the year,
which will be another significant milestone for the Company."
Polaris
Infrastructure will hold its earnings call to discuss financial and
operating results for the quarter ended
March 31, 2019 on Monday, May 6, 2019 at 4:15 pm EST. To
listen to the call, please dial +1 (647) 427-7450 or +1 (888)
231-8191.
A digital recording of the earnings call will be
available for replay two hours after the call's completion,
until May 13, 2019. Please dial +1 (416) 849-0833
or +1 (855) 829-2056; Conference ID: 1161728.
|
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the
operation, acquisition and development of renewable energy projects
in Latin America. Currently, the Company operates a 72MW
geothermal project located in Nicaragua and a 5MW run-of-river project in
Peru. The Company is also completing the construction of
another 28 MW of run-of-river projects also located in Peru.
USE OF NON-GAAP MEASURES
Certain measures in this document do not have any standardized
meaning as prescribed by International Financial Reporting
Standards ("IFRS") and, therefore, are not considered generally
accepted accounting principles ("GAAP") measures. Where
non-GAAP measures or terms are used, definitions are provided. In
this document and in the Company's consolidated financial
statements, unless otherwise noted, all financial data is prepared
in accordance with IFRS.
EBITDA is a non-GAAP metric used by many investors to compare
companies on the basis of ability to generate cash from
operations. The Company uses Adjusted EBITDA to assess its
operating performance without the effects of (as applicable):
current and deferred tax expense, finance costs, interest income,
other gains and losses, impairment loss, depreciation and
amortization of plant assets, share-based compensation and other
non-recurring items. The Company adjusts for these factors as they
may be non-cash, unusual in nature and are not factors used by
management for evaluating the performance of the Company. The
Company believes the presentation of this measure will enhance an
investor's understanding of its operating performance. Adjusted
EBITDA is not intended to be representative of cash provided by
operating activities or results of operations determined in
accordance with GAAP. The table below reconciles between
Adjusted EBITDA and Net income (loss) and comprehensive Income
(loss), calculated in accordance with IFRS.
|
|
Three months
ended
|
(in
thousands)
|
March 31,
2019
|
March 31,
2018
|
Total earnings (loss)
attributable to Owners of the Company
|
$
|
3,380
|
$
|
512
|
Add
(deduct):
|
|
|
Net loss attributable
to non-controlling interest
|
-
|
7
|
Income tax (expense)
recovery
|
1,423
|
2,045
|
Finance
costs
|
4,571
|
4,239
|
Interest
income
|
(227)
|
(131)
|
Other
losses
|
588
|
36
|
Acquisition
costs
|
135
|
-
|
Decommissioning
liabilities adjustments
|
34
|
(19)
|
Depreciation and
amortization of plant assets
|
5,835
|
5,546
|
Share-based
compensation
|
136
|
94
|
Adjusted
EBITDA
|
$
|
15,875
|
$
|
12,329
|
Cautionary Statements
This news release contains certain "forward-looking information"
which may include, but is not limited to, statements with respect
to future events or future performance, management's expectations
regarding the Company's growth, results of operations, estimated
future revenue, requirements for additional capital, revenue and
production costs, future demand for and prices of electricity,
business prospects and opportunities. In addition, statements
relating to estimates of recoverable geothermal energy "reserves"
or "resources" or energy generation are forward-looking
information, as they involve implied assessment, based on certain
estimates and assumptions, that the geothermal resources and
reserves described can be profitably produced in the future. Such
forward-looking information reflects management's current beliefs
and is based on information currently available to management.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "predicts",
"intends", "targets", "aims", "anticipates" or "believes" or
variations (including negative variations) of such words and
phrases or may be identified by statements to the effect that
certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. A number of known and
unknown risks, uncertainties and other factors may cause the actual
results or performance to materially differ from any future results
or performance expressed or implied by the forward-looking
information. Such factors include, among others, general business,
economic, competitive, political and social uncertainties; the
actual results of current geothermal energy production, development
and/or exploration activities and the accuracy of probability
simulations prepared to predict prospective geothermal resources;
changes in project parameters as plans continue to be refined;
possible variations of production rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labor
disputes and other risks of the geothermal industry; political
instability or insurrection or war; labor force availability and
turnover; delays in obtaining governmental approvals or in the
completion of development or construction activities, or in the
commencement of operations; the ability of the Company to continue
as a going concern and general economic conditions, as well as
those factors discussed in the section entitled "Risk Factors" in
the Company's Annual Information Form. These factors should be
considered carefully and readers of this news release should not
place undue reliance on forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. The information in this news
release, including such forward-looking information, is made as of
the date of this news release and, other than as required by
applicable securities laws, Polaris Infrastructure assumes no
obligation to update or revise such information to reflect new
events or circumstances.
SOURCE Polaris Infrastructure Inc.