Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q1 2014 Earnings Presentation
24 slides from Ormat Technologies's earnings presentation, May 9, 2014
Slide 1: First Quarter 2014 Earnings Call
Ormat Technologies, Inc. First Quarter 2014 Earnings Call May 9, 2014 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 • 2014 First Quarter Prepared Remarks • Quarter 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: Quarterly financial highlights
Highlights Quarterly financial highlights: • Quarterly revenues increased 19.8% to $142.4 million • Gross margin increased from to 22.5% to 37.5% • Operating income reached $42.6 million compared to $7.7 million • Net income attributable to the Company’s shareholders was $21.6 million, or $0.47 per
Slide 5: Highlights: Operational highlights and recent developments
Highlights Operational highlights and recent developments: • Increased electricity generation by 15.5% year-over-year to 1.2 million MWh, driven primarily by new capacity coming on line at Olkaira III Plants 2 and 3 in Kenya as well as at the Don A. Campbell Plant in Nevada • The Sarulla consortium
Slide 6: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 6 Copyright © 2014 Ormat Technologies, Inc.
Slide 7: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution +23.5 million (19.8%) -3.2 million (3.4%) 142.4 33% 118.9 43% 57% 67% 92.1 89.0 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Electricity Segment Product Segment All amounts in million USD 7 Copyright © 2014 Ormat Technologi
Slide 8: Electricity Segment
Electricity Segment Revenues Cost of Revenues +26.5 million (38.8%) +1.9 million (3.5%) $94.8 14.8 3.6 5.9 $68.3 2.2 55.1 57.0 Q1 2013 Net loss on Higher energy Improved Contribution of Q1 2014 Q1 2013 Q1 2014 derivative rates under the generation & Olkaria and contracts SO#4 contracts others DAC •
Slide 9: Product Segment
Product Segment Revenues Cost of Revenues -3.0 million (5.9%) -5.1 million (13.8.%) 50.6 47.6 37.0 31.9 Q1 2013 Q1 2014 Q1 2013 Q1 2014 All amounts in million USD 9 Copyright © 2014 Ormat Technologies, Inc.
Slide 10: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 39.8% 37.5% 32.9% 26.8% 22.5% 19.3% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 10 Copyright © 2014 Ormat Technologies, Inc.
Slide 11: Operating Income
Operating Income Total Electricity Segment Product Segment 42.6 30.9 16.7 11.7 7.7 9.0 7.7 Q1 2013 Q1 2013 Q1 2014 Q1 2013 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Excl. (1.3) Excl. Termination fee Termination fee Increase was primarily due to • Increase in gross margin in our Electricity Segment; and, • A o
Slide 12: Interest Expense, Net
Interest Expense, Net Interest Expense, Net +4.7 million (29.3%) Gross Interest Expense Capitalized Interest 20.5 21.0 18.6 15.9 2.7 0.5 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Increase was primarily due to • Increase in interest expense related to new loans in the amount of $90.0 million re
Slide 13: Net Income Attributable to Stockholders & EPS
Net Income (loss) Attributable to the Company's Stockholders & EPS Net Income (loss) Attributable to the Earnings (loss) per Share Company's Stockholders (Diluted) $21.6 $0.47 Q1 2013 Q1 2014 Q1 2013 Q1 2014 ($0.11) ($5.0) All amounts in million USD; 13 Copyright © 2014 Ormat Technologies, Inc.
Slide 14: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment +24.9 M (54.4 %) +24.9 M (73.5%) -0.0 M (0.4%) 70.6 58.8 45.7 33.9 11.9 11.8 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 D&A* 21.6 22.1 D&A* 20.6 21.3 D&A* 1.0 0.8 All amounts in million USD
Slide 15: Cash, Cash Equivalents and Short-Term Bank Deposit
Cash, Cash Equivalents and Short-Term Bank Deposit 48.3 68.1 23.3 21.8 14.8 12.9 $57.4 15.0 10.5 4.6 $47.9 Dec. 31 2013 Proceeds from Cash grant from Cash from Capital Net change in Net repayment Repurchase Repayment of Others1 March 31, 2014 Heber Solar sale the U.S. operating expenditures restrict
Slide 16: Payment of Principal Due by Period
Payment of Principal Due by Period The annual average interest rate for the total debt is 6.1% Q1-2014 Q2-2014 Q3-2014 Q4-2014 Year 2014 Long-term non-recourse debt & limited recourse debt 0 5,252 5,272 5,291 15,815 Senior Secured Notes (non-recourse) due 2020 0 10,073 1,215 15,573 26,861 Long-term
Slide 17: Operations Update
Operations Update Yoram Bronicki, President and COO Green energy you can rely on Copyright © 2014 Ormat Technologies, Inc.
Slide 18: Total Generation (GWh)
Total Generation(GWh) Annual Quarterly 4,253 3,943 3,560 3,682 3,110 1,040 1,201 2009 2010 2011 2012 2013 Q1 2013 Q1 2014 18 Copyright © 2014 Ormat Technologies, Inc.
Slide 19: Investment Plan for 2014 to Support Future Growth
Investment Plan for 2014 to Support Future Growth • 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 • 14 MW Sarulla Phase 1, Indonesia • The aforementioned and a
Slide 20: Product Segment
Product Segment • Approximately $120.4 million backlog as of May 4, 2014 • Revenues for the period between April 1 and May 4, 2014 are included • $254 million supply contract signed for the 330 MW Sarulla project in Indonesia is not included in the backlog • Expect to complete financing and begin co
Slide 21: Business Overview
Business Overview Dita Bronicki, CEO Green energy you can rely on Copyright © 2014 Ormat Technologies, Inc.
Slide 22: CapEx Needs & Sources for the Balance of 2014
CapEx Needs & Sources for the Balance of 2014 As of the end of March 31, 2014 Capital Needs ($ millions) Sources of Capital ($ millions) 97 Construction & Enhancements1 47.9 Cash and cash equivalents 43 Development of new projects 208.1 Unused corporate lines of credit 27 Exploration activities 256.
Slide 23: 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 23 Copyright © 2014 Ormat Technologies, Inc.
Slide 24: Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information
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 March 31, 2014 and 2013 (Unaudited) We calculate EBITDA as net income before interest, taxes, depreciation and am