Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — FY2013 Earnings Presentation
28 slides from Ormat Technologies's earnings presentation, Feb 26, 2014
Slide 1: Fourth Quarter and Year-End 2013 Earnings Call
Ormat Technologies, Inc. Fourth Quarter and Year-End 2013 Earnings Call February 26, 2014 110 MW Olkaria III Geothermal Complex, Kenya Green energy you can rely on Copyright © 2014 Ormat Technologies, Inc.
Slide 2: Disclaimer
Disclaimer Information provided during this presentation may contain statements relating to current expectations, estimates, forecasts and projections about future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking sta
Slide 3: Agenda
Agenda • Fourth Quarter and Year-End 2013 Prepared Remarks • Year-End Highlights: Dita Bronicki, CEO • Financial Overview: Doron Blachar, CFO • Operations Update: Yoram Bronicki, President and COO • Closing Remarks: Dita Bronicki, CEO • Q&A 3 Copyright © 2014 Ormat Technologies, Inc.
Slide 4: Highlights
Highlights • Total revenues for the year increased 6.3% to $533.2 million; • Record revenues in the product segment: 8.9% increase to $203.5 million; • Record adjusted EBITDA for the year: 22.3% increase to $227.1 million; Fourth quarter adjusted EBITDA increased 45.8% to $51.4 million • Gross margi
Slide 5: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 5
Slide 6: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution +31.5 million (6.3%) +0.7 million (0.2%) Electricity Segment Product Segment $533.2 $501.8 $372.8 $373.4 37% 38% 2012 63% 2013 62% YE 2012 YE 2013 YE 2012 YE 2013 All amounts in million USD 6 Copyright © 2014 Ormat Technologie
Slide 7: Electricity Segment
Electricity Segment Revenues Cost of Revenues +14.8 million (4.7%) -4.5 million (1.9 %) 37.3 11.0 5.1 1 6.4 $329.7 $314.9 $237.4 $232.9 YE 2012 Contribution Transition to Mark to Reduced YE 2013 of Olkaria, SRAC market generation YE 2012 YE 2013 MGH & adjustment - and energy Tuscarora derivative rat
Slide 8: Product Segment
Product Segment Total Revenues Total Cost of Revenues +16.6 million (8.9%) +5.2 million (3.8%) $203.5 $186.9 $135.3 $140.5 YE 2012 YE 2013 YE 2012 YE 2013 • The increase in our Product Segment revenues reflects the increase in new customer orders that we secured in 2012 and 2013 All amounts in milli
Slide 9: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 30.0% 29.4% 30.9% 25.7% 27.6% 24.6% YE 2012 YE 2013 YE 2012 YE 2013 YE 2012 YE 2013 9 Copyright © 2014 Ormat Technologies, Inc.
Slide 10: Operating Income (Loss)
Operating Income (Loss) Total Electricity Segment Product Segment +20.5 (26.8%) +7.9 (17.0%) +12.6 (41.9%) $97.0 $76.5 $46.4 $54.3 $42.7 $30.1 YE 2012 YE 2012 YE 2013 YE 2012 YE 2012 YE 2013 YE 2012 YE 2013 Excl. Excl. impairment impairment ($159.9) ($190.0) The increase was principally attributable
Slide 11: Interest Expense, Net
Interest Expense, Net Interest Expense, Net +9.7 million (15.2 %) Gross Interest Expense Capitalized Interest $81.4 $73.8 $76.1 $64.1 $12.0 $7.6 YE 2012 YE 2013 YE 2012 YE 2013 YE 2012 YE 2013 Increase was primarily due to • $6.9 million increase in interest expense related to the sale of tax benefi
Slide 12: Net Income (Loss) Attributable to the Company's Stockholders & EPS
Net Income (Loss) Attributable to the Company's Stockholders & EPS Net Income (Loss) Attributable to Earnings (Loss) per Share the Company's Stockholders (Diluted) $41.2 $0.91 YE 2012 YE 2013 YE 2012 YE 2013 ($4.69) ($213.0) All amounts in million USD; Except per share amounts 12 Copyright © 2014 Or
Slide 13: Fourth Quarter Revenues
Fourth Quarter Revenues Total Revenues Electricity Segment Product Segment +17.6 million (15.5%) +8.7 million (11.4%) +8.9 million (23.9%) $130.9 $113.3 $84.7 $76.1 $46.2 $37.3 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 2012 Q4 2013 All amounts in million USD; 13 Copyright © 2014 Ormat Technologies, Inc.
Slide 14: Fourth Quarter Results
Fourth Quarter Results Net Income (Loss) Attributable to Operating Income (Loss) the Company's Stockholders $21.6 $8.2 $8.2 Q4 2012 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Excl. impairment ($220.9) ($229.0) All amounts in million USD; 14 Copyright © 2014 Ormat Technologies, Inc.
Slide 15: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment $227.1 $185.7 $174.2 $153.6 +41.4 M (22.3%) +16.1M (45.8%) +20.6 M (13.4%) +11.7 M (41.2%) +20.8 M (64.6%) +4.5 M (65.3%) $51.4 $52.9 $35.2 $40.0 $28.3 $32.1 $6.9 $11.4 2012 2013 Q4 Q4 2012 2013 Q4 Q4 2012 2013 Q4 Q4 2012 2013 2012 2013 2012
Slide 16: Cash, Cash Equivalents, Marketable Securities and Short Term Bank Deposits
Cash, Cash Equivalents, Marketable Securities and Short Term Bank Deposits 1 204.6 167.5 86.8 68.4 25.5 13.4 14.7 11.9 8.4 $69.6 $57.4 Dec. 31 2012 Cash grant from Net change in Cash from Net proceeds Capital Repayment of of Cash paid to the Repurchase OFC Other Dec. 31 2013 the U.S. restricted cash
Slide 17: Payment of Principal Due by Period
Payment of Principal Due by Period Q1-2014 Q2-2014 Q3-2014 Q4-2014 Year 2014 Long-term non-recourse debt & limited recourse debt 4,562 5,252 5,272 5,291 20,377 Senior Secured Notes (non-recourse) due 2020 2,502 10,944 1,215 16,476 31,137 Long-term loans (full recourse) 3,461 10,947 3,519 10,948 28,8
Slide 18: Operations Update
Operations Update Yoram Bronicki President and COO Green energy you can rely on
Slide 19: Operations Highlights
Operations Highlights Generation • Completed 70 MW (net) of new capacity in the Kenya and the U.S. • Completed enhancements and operational improvements at existing plants • Jersey Valley, NV - brought the plant to its designed generating capacity • Mammoth G1, CA - replaced the original equipment w
Slide 20: Operations Highlights
Operations Highlights Annual Generation (GWh) All Inclusive OpEx1 ($/MWh) 44 4,253 41 3,943 38 37 36 3,560 3,682 3,110 2009 2010 2011 2012 2013 2009 2010 2011 2012 2 2013 1 All Inclusive OpEx includes fixed O&M, variable O&M, field O&M, royalties, and related G&A. 2 2012 figure excludes a non- recur
Slide 21: Worldwide Operating Portfolio - 626 MW
Worldwide Operating Portfolio - 626 MW Generating Capacity Power Plant Location (MW) Domestic Geothermal Brady Complex Nevada 18 Don A. Campbell Nevada 16 Heber Complex California 92 Jersey Valley Nevada 12 Mammoth Complex California 29 McGinness Hills Nevada 38 North Brawley California 27 Ormesa Co
Slide 22: Investment Plan for 2014
Investment Plan for 2014 • Plan to invest approximately $150 million in new projects in development and construction • 30 MW McGinness Hills Phase 2, Nevada - by mid-2015 • 18 MW Platanares Phase 1, Honduras in 2016 • 15 MW Menangai, Kenya • 14 MW Sarulla Phase 1, Indonesia • Above and other U.S. an
Slide 23: Product Segment
Product Segment • Strong performance of the product segment • Record revenues reaching $203 million in 2013 • Approximately $165 million backlog as of February 25, 2014 • Revenues for the period between January 1 and February 25, 2014 are included • $254 million supply contract signed for the 330 MW
Slide 24: Business Overview
Business Overview Dita Bronicki, CEO Green energy you can rely on
Slide 25: Business Overview - Demand Remains Strong
Business Overview - Demand Remains Strong Global Market • Power Africa initiative - double the access to power over the next five years • The U.S. will invest up to $7 billion in seven sub-Saharan states of which, Kenya, Ethiopia and Tanzania have a potential for geothermal energy • Asia-Pacific com
Slide 26: CapEx Needs & Sources for 2014
CapEx Needs & Sources for 2014 As of the end of December 31, 2013 Capital Needs ($ millions) Sources of Capital ($ millions) 130 Construction & Enhancements1 54.7 Cash and cash equivalents 45 Development of new projects 160.0 Unused corporate lines of credit 28 Exploration activities 214.7 Total sou
Slide 27: Revenues Guidance for 2014
Revenues Guidance for 2014 • Electricity Segment - between $370 and $380 million • Product Segment - between $170 and $180 million • Including $36 million revenues from the Sarulla project • Total: between $540 and $560 million 27 Copyright © 2014 Ormat Technologies, Inc.
Slide 28: Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information
Reconciliation of EBITDA Adjusted EBITDA and Additional Cash Flows Information For the Three-Month Periods and Years Ended December 31, 2013 and 2012 (Unaudited) We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before