Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q1 2015 Earnings Presentation
25 slides from Ormat Technologies's earnings presentation, May 7, 2015
Slide 1: Ormat Technologies, Inc. First Quarter 2015 Earnings Call
Ormat Technologies, Inc. First Quarter 2015 Earnings Call May 7, 2015 Green energy you can rely on Copyright © 2015 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 • 2015 first quarter prepared remarks • Q1 2015 highlights: Isaac Angel, CEO • Financial overview: Doron Blachar, CFO • Operations & business updates: Isaac Angel, CEO • Q&A 3 Copyright © 2015 Ormat Technologies, Inc.
Slide 4: Multi-Year Plan
Multi-Year Plan Leveraging capabilities to exploit growth opportunities Focus on profitable growth by enhancing existing operations Continued diversification 4 Copyright © 2015 Ormat Technologies, Inc.
Slide 5: Q1 2015 Highlights and Recent Developments
Q1 2015 Highlights and Recent Developments: • Electricity revenues of $90.0 million, compared to $94.8 million in the first quarter of 2014; • Product Segment revenues of $30.3 million, compared to $47.6 million in the first quarter of 2014; • Cash flow from operation was $83.1 million, an increase
Slide 6: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 6 Copyright © 2015 Ormat Technologies, Inc.
Slide 7: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution -22.2 million (15.6%) -12.8 million (14.4%) $142.4 25% 33% $120.2 67% $89.0 75% $76.2 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Electricity Segment Product Segment All amounts in million USD 7 Copyright © 2015 Ormat Tech
Slide 8: Electricity Segment
Electricity Segment Revenues Cost of Revenues -4.8 million (5.1%) -1.4 million (2.5%) 3.6 6.6 $94.8 2.7 3.1 $90.0 1.4 $57.0 $55.6 Q1 2014 Reduction in Contribution Lower energy Lower Other Q1 2015 net loss on of MGH 2 rates 2 generation in Q1 2014 Q1 2015 derivative Puna 3 contracts1 1) Reduction in
Slide 9: Product Segment
Product Segment Revenues Cost of Revenues -17.3 million (36.4%) -11.3 million (35.4.%) $47.6 $30.3 $31.9 $20.6 Q1 2014 Q1 2015 Q1 2014 Q1 2015 All amounts in million USD 9 Copyright © 2015 Ormat Technologies, Inc.
Slide 10: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 37.5% 36.6% 39.8% 32.9% 38.2% 31.9% Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 10 Copyright © 2015 Ormat Technologies, Inc.
Slide 11: Operating Income
Operating Income Total Electricity Segment Product Segment $42.6 $29.9 $30.9 $24.0 $11.7 $5.9 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 All amounts in million USD 11 Copyright © 2015 Ormat Technologies, Inc.
Slide 12: Interest Expense, Net
Interest Expense, Net Interest Expense, Net Gross Interest Expense Capitalized Interest -2.7 million (13.1%) $20.5 $21.0 $17.8 $18.8 $0.5 $1.0 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Decrease was primarily due to • Lower interest expense as a result of principal payments, partially offset by
Slide 13: Net Income Attributable to the Company's Stockholders & EPS
Net Income Attributable to the Company's Stockholders & EPS Net Income Attributable to the Earnings per Share (Diluted) Company's Stockholders $21.6 $0.47 $10.0 $0.21 Q1 2014 Q1 2015 Q1 2014 Q1 2015 All amounts in million USD; 13 Copyright © 2015 Ormat Technologies, Inc.
Slide 14: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment -8.1 million (11.0%) -0.6 million (1.0%) -7.5 million (54.1%) $73.4 $65.3 $59.5 $58.9 $13.9 $6.4 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 D&A* 22.1 23.8 D&A* 21.3 23.1 D&A* 0.7 0.7 All am
Slide 15: Cash, Cash Equivalents, Marketable Securities and Short-Term Bank Deposit
Cash, Cash Equivalents, Marketable Securities and Short-Term Bank Deposit 42.4 83.1 22.3 10.5 3.9 $70.7 15.4 $40.2 0.8 10.3 Dec. 31 2014 Other Proceeds from Share exchange Cash from Capital Net change in Repayment of Cash dividend 1 31-Mar-15 revolving credit transaction operating expenditures restr
Slide 16: Payment of Principal Due by Period
Payment of Principal Due by Period The average interest rate for the total debt is 6.1% Q1-2015 Q2-2015 Q3-2015 Q4-2015 Year 2015 Long-term non-recourse debt & limited recourse debt 0 4,499 4,499 4,498 13,496 Senior Secured Notes (non-recourse) due 2020 0 11,173 2,111 18,669 31,953 Long-term loans (
Slide 17: Operations & Business Updates
Operations & Business Updates Isaac Angel, CEO Green energy you can rely on Copyright © 2015 Ormat Technologies, Inc.
Slide 18: Operations Update
Operations Update • Feb. 1, 2015 - began commercial Heber 1, California operation of McGinness Hills Phase 2, Nevada • Heber 1 enhancement Annual Generation (GWh) Quarterly Generation (GWh) 4.3 4.5 3.9 3.6 3.7 1.2 1.2 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 18 Copyright © 2015 Ormat Technologies, I
Slide 19: Construction Updates
Construction Updates • Don A. Campbell Phase 2, Nevada Don A. Campbell Phase 2, Nevada • Signed 20-yeasr PPA with SCPPA • 19 MW expected by the end of 2015 • Plant 4, Olkaria, Kenya • 24 MW expected in H2 2016 • Sarulla, Phase 1, Indonesia • 14 MW expected in 2016 • Above listed and additional proje
Slide 20: CapEx Needs for the Remainder of 2015
CapEx Needs for the Remainder of 2015 As of March 31, 2015 Capital Needs ($ millions) 112 Construction & Enhancements 26 Development & Exploration 10 Maintenance CapEx 3 Production Facility & other $151 Total CapEx $61 Debt repayment $212 Total 20 Copyright © 2015 Ormat Technologies, Inc.
Slide 21: Product Segment
Product Segment • Signed $98.8 million EPC contract for a geothermal project in Chile • Backlog increased to a record of $387.0 million as of May 6, 2015 • Includes revenues for the period between April 1 and May 6, 2015 • Revenues are expected to be recognized in the years 2015-2017 21 Copyright ©
Slide 22: Closed Equity Transaction
Closed Equity Transaction • Received $162.3 million cash from Northleaf Capital Partners • Northleaf acquired 36.75% equity interest at an aggregate valuation of $442 Million • The purchase price and the percentage interest acquired by Northleaf were affected by the devaluation of the Canadian dolla
Slide 23: Regulatory Updates
Regulatory Updates Continued support for renewables & geothermal • California • Gov. Jerry Brown announced Jan. 5 that he would like to raise the renewables portfolio standard target to 50% by 2030 • Hawaii • House and Senate Committees in Hawaii unanimously approved legislation to raise the state’s
Slide 24: Reiterating 2015 Guidance
Reiterating 2015 Guidance • Revenues • Electricity Segment - between $380 and $390 million • Product Segment - between $180 and $190 million • Total: between $560 and $580 million • Adjusted EBITDA • Between $280 and $290 million 24 Copyright © 2015 Ormat Technologies, Inc.
Slide 25: Reconciliation of EBITDA Adjusted EBITDA and Additional Cash Flows Information
Reconciliation of EBITDA Adjusted EBITDA and Additional Cash Flows Information • We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) write-off of un