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Section 1: 8-K (FORM 8-K)

ora20180807_8k.htm

 

Table of Contents

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 8, 2018 (August 7, 2018)

 

Ormat Technologies, Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware

(State or other jurisdiction

of incorporation)

001- 32347

Commission File Number

88-0326081

(I.R.S. Employer Identification

Number)

 

6225 Neil Road,

Reno, Nevada

(Address of principal executive offices)

89511-1136

(Zip code)

 

(775) 356-9029

(Registrant’s telephone number, including area code)

  

N.A.

(Former name or former address, if changes since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐  

 

 

Table of Contents

 

TABLE OF CONTENTS

 

 

 

Item 2.02     Results of Operation and Financial Condition

Item 9.01     Financial Statements and Exhibits

Signatures

Exhibit Index

Exhibit 99.1

Ex-99.1     Press Release

 

 

Table of Contents

 

INFORMATION TO BE INCLUDED IN THE REPORT 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 7, 2018, Ormat Technologies, Inc. (the “Registrant”) reported its earnings for its second fiscal quarter of 2018. A copy of the Registrant's press release containing this information is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.

 

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

The Registrant is making reference to non-GAAP financial measures in the press release. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

 

 

Item 9.01. Financial Statements and Exhibits.

 

(c) Exhibits

The following exhibit is furnished as part of this report on Form 8-K:

 

99.1     Press release of the Registrant dated August 7, 2018 containing financial information for its second fiscal quarter of 2018.

 

 

 

Safe Harbor Statement

 

Information provided in this report on Form 8-K 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 statements generally relate to the Registrant’s plans, objectives and expectations for future operations and are based upon management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.’s Annual Report on Form 10-K/A and Form 10Q for the first quarter 2018, both filed with the SEC on June 19, 2018.

 

 

 

These forward-looking statements are made only as of the date hereof, and the Registrant undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

ORMAT TECHNOLOGIES, INC.

(Registrant)

       
       
       
  By /s/ Isaac angel  
   

Isaac Angel

Chief Executive Officer

 

 

Date: August 8, 2018

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

ex_120863.htm

Exhibit 99.1

 

 

Ormat Technologies Contact:

Smadar Lavi

VP Corporate Finance and Head of Investor Relations

775-356-9029 (ext. 65726)

slavi@ormat.com

Investor Relations Agency Contact:

Rob Fink

Hayden - IR

646-415-8972

rob@haydenir.com

 

Ormat Technologies Reports SECOND quarter 2018 financial results

Total revenue of $178.3 million

electricity revenue up 10.2%, despite Volcano-related outage at PUNA Plant

 

RENO, Nev. August 7, 2018, Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the second quarter ended June 30, 2018. The financial results were impacted by two main events. First, the shutdown of the Puna Power Plant in Hawaii (the “Puna Plant”) on May 3, 2018 following the nearby Kilauea volcano eruption and second, the consolidation of U.S. Geothermal Inc. (“USG”), following the close of its acquisition on April 24, 2018.

 

($ millions, except per share amounts)

 

Q2 2018

   

Q2 2017

   

Change (%)

 

Revenues

                       

Electricity

    122.2       110.9       10.2 %

Product

    54.9       67.6       (18.7% )

Other

    1.2       0.9       36.8 %

Total Revenues

    178.3       179.4       (0.6% )

Gross margin (%)

                       

Electricity

    33.5       43.0          

Product

    31.6       35.7          

Other

    (68.3 )     (154.6 )        

Gross margin (%)

    32.2       39.3          

Operating income

    36.6       53.2       (31.2% )

Net income (loss) attributable to the Company’s shareholders

    (0.3 )     8.6          

Diluted EPS

  $ (0.01 )   $ 0.17          
                         

Adjusted Net income attributable to the Company’s stockholders1

    16.6       29.5          

Diluted Adjusted EPS

    0.32       0.58          

Adjusted EBITDA

    80.8       88.1       (8.3% )

 

 

 


1 A reconciliation of Adjusted Net income attributable to the Company’s stockholders is set forth below in this release

 

ORMAT TECHNOLOGIES, INC.   
6225 Neil Road Reno, Nevada  •  +1-775-356-9029  •  ormat@ormat.com           ormat.com

 

 

 

 

 

second quarter financial highlights

 

 

Total revenues of $178.3 million, down 0.6% compared to the second quarter of 2017.

 

 

Electricity segment revenues of $122.2 million, up 10.2% compared to the second quarter of 2017 despite the outage of the Puna Plant since May 3, 2018 following the Kilauea volcano eruption.

 

 

Electricity generation increased 7.7%, compared to the second quarter of 2017, from 1.33 million MWh to 1.43 million MWh.

 

 

Electricity segment gross margin was 33.5% compared to 43.0% last year. The reduction is mainly related to the outage of the Puna Plant, resulting in a reduction of approximately $5.7 million in gross profit. Gross margin was also impacted by planned maintenance activity at USG power plants that required their shut down as part of the operational integration plan and took longer than planned.

 

 

Electricity segment gross margin for the second quarter of 2018 excluding Puna and USG plants:

 

   

Q2 2018

   

Q2 2017

   

H1 2018

   

H1 2017

 

Gross Margin (%) Excluding Puna and USG Plants

                               
                                 

Electricity segment

    40.7 %     43.0 %     42.9 %     43.0 %

 

 

Product segment revenues of $54.9 million, down 18.7% compared to the second quarter of 2017.

 

 

Product segment backlog amounts to $229.0 million as of August 1, 20182.

 

 

Other segment revenue was $1.2 million in the quarter compared to $0.9 million last year.

 

 

Total gross margin was 32.2% compared to 39.3% in the second quarter of 2017; excluding the impact of the Kilauea volcano eruption near the Puna Plant and the planned maintenance activity at the USG power plants, gross margin was 37.0%.

 

 

Net loss attributable to the Company's shareholders was $0.3 million, or $0.01 per diluted share, compared to a net income attributable to the Company's shareholders of $8.6 million, or $0.17 per diluted share, in the second quarter of 2017.

 

 

Adjusted EBITDA of $80.8 million, compared to $88.1 million in the second quarter of 2017. The reduction was due to an expected reduction in revenue and profitability of the Product segment and gross loss in the Puna Plant and in USG. This reduction was partially offset by an increase in the Electricity segment revenues from new projects and by an increase in Ormat’s proportionate share in the EBITDA of Sarulla Geothermal Power Plant (“Sarulla”).

 

 

In the second quarter 2018, we recorded a non-cash a tax expense of $16.9 million. This expense represents a partial reverse, as expected, of the tax benefit of $44.4 million that was recorded in the first quarter of 2018 for the reduction of the valuation allowance related to foreign tax credits and production tax credits.

 

 

Adjusted net income attributable to the Company's shareholders of $16.6 million, or $0.32 per diluted share for the three months ended June 30, 2018, compared to $29.5 million, or $0.58 per diluted share, in the second quarter of 2017.

 

 

Declared a quarterly dividend of $0.10 per share for the second quarter of 2018.

 

 


2 The Product segment backlog includes revenues for the period between July 1, 2018 and August 1, 2018. The increase in the backlog is compared with the Backlog of $281.0 million as of May 7, 2018.

 

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Recent Developments

 

 

Completed testing and commenced commercial operation of the 11 MW Plant I expansion project in the Olkaria III complex in Kenya increasing the total generating capacity of the complex to 150 MW.

 

 

Closed a $33.4 million tax equity partnership transaction for Tungsten Mountain geothermal power plant whereby Ormat will continue to operate and maintain the power plant and will receive substantially all of the distributable cash flow generated by the power plant.

 

 

Commenced commercial operation of the third and final unit of Sarulla bringing the project to its full capacity of 330 MW.

 

“In the second quarter we delivered a 10.2% increase in Electricity segment revenue and a 7.7% increase in generation despite the significant impact of the Puna Plant outage following the Kilauea Volcano eruption,” commented Isaac Angel, Chief Executive Officer. “This speaks to the strength of our Electricity segment. The growth we delivered in the recent 12 months from organic growth and by acquisitions mitigated the impact of the shutdown in the Puna Plant and enabled us to increase the Electricity segment revenue and maintain a constant level of total revenues quarter over quarter by compensating for the expected reduction in the Product segment.

 

The outage we had this quarter in the Puna Plant and the planned maintenance activity in the USG plants impacted our profitability. However, despite this outage and planned maintenance and assuming we will receive the insurance payouts related to Puna Plant’s loss of profits by the end of the year, we expect that the profitability in the Electricity segment in the full year to be in line with profitability last year.”

 

Mr. Angel continued: “In Hawaii, lava continues to flow near our Puna Plant, and it is not yet possible to anticipate a timeline for the lava flow resolution. This impacts our financials, but we are in discussion with our insurers and expect to be reimbursed for loss of profits and property damages. Assuming the insurance reimbursement will be in line with our expectations we will meet our Adjusted EBITDA targets for the year. However, the timing of insurance commitment and payouts can impact this as we navigate the event.”

 

Mr. Angel added, “We continued with our growth plans in the second quarter. From the beginning of the year we added approximately 70 MW to our portfolio including 11 MW that were added in the second quarter to our Olkaria III complex in Kenya, bringing our total portfolio to 862 MW. We are on track with our near-term growth target and plan to add between 115 and 125 MW by the end of 2020.”

 

Guidance  

 

Mr. Angel added, “In light of the continued lava flow near the Puna Plant and the accounting treatment that does not allow to record insurance payouts in revenues, we are adjusting our full-year 2018 guidance for the Electricity segment revenues to be between $500 million and $510 million to reflect the Puna Plant shutdown. We are increasing our guidance for the Product segment revenues to be between $190 million and $200 million. There is no change to Revenues from energy storage and demand response activity which are expected to be between $8 million and $12 million. As such, guidance for the total revenues is between $698 million and $722 million. We increased our 2018 guidance for Adjusted EBITDA to be between $370 million and $380 million for the full year, assuming successful resolution by the end of 2018 of our insurance claim for loss of profits at the Puna Plant.

 

In the event we do not reach a resolution of our insurance claim by the end of 2018, the 2018 Adjusted EBITDA will be negatively impacted by approximately $20.0 million dollars.

 

We expect annual Adjusted EBITDA attributable to minority interest to be approximately $30.0 million. The minority interest includes our partners share in the insurance claim for the Puna Plant.

 

Page 3/9

 

 

 

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and six months ended June 30, 2018. However, the Company is unable to provide a reconciliation for its Adjusted EBITDA guidance range due to high variability and complexity with respect to estimating forward looking amounts for impairments and disposition and acquisition of business interests, income taxes including the tax impact of the repatriation of proceeds from sales in foreign jurisdictions and tax benefit or expense related to effects of the recently-enacted tax law reform in the United States and other non-cash expenses and adjusting items which are excluded from the calculation of Adjusted EBITDA..

 

second Quarter 2018 Financial Results

 

For the three months ended June 30, 2018, total revenues were $178.3 million, down 0.6% compared to the quarter ended June 30, 2017. Electricity segment revenues increased 10.2% to $122.2 million for the three months ended June 30, 2018, up from $110.9 million for the three months ended June 30, 2017. The increase was mainly attributable to the commencement of new power plants and the consolidation of USG and was offset by the outage at the Puna Plant. Product segment revenues decreased 18.7% to $54.9 million for the three months ended June 30, 2018, from $67.6 million for the three months ended June 30, 2017. Other segment revenue were $1.2 million in the second quarter of 2018 compared to $0.9 million in 2017.

 

General and administrative expenses for the three months ended June 30, 2018 were $15.9 million, or 8.9% of total revenues, compared to $12.2 million, or 6.8% of total revenues, for the three months ended June 30, 2017. The increase was primarily attributable to expenses of approximately $2.0 million related to USG consolidation that was acquired on April 24, 2018 and higher costs associated with the identified restatement of our second and third quarter of 2017 financial statements and our full-year 2017 financial statements and the associated work related to the restatement.

 

Other non-operating income (expense), net for the three months ended June 30, 2018 were $7.4 million reflecting insurance proceeds that we received for the loss of a rig at the Puna Plant.

 

The Company reported net loss attributable to the Company’s shareholders of $0.3 million, or $0.01 per diluted share, compared to net income attributable to the Company’s shareholders of $8.6 million, or $0.17 per diluted share, for the second quarter last year. Adjusted net income attributable to the Company's shareholders of $16.6 million, or $0.32 per diluted share for the three months ended June 30, 2018, compared to $29.5 million, or $0.58 per diluted share, in the second quarter of 2017; Adjusted Net income attributable to the Company’s stockholders and diluted EPS for the second quarter of 2018 excludes an increase in the valuation allowance related to foreign tax credits and production tax credit, which is volatile between the periods in light of the evolving regulations in the tax code in the US following the new tax act and is not indicative to our long term operational results.

 

Adjusted EBITDA for the three months ended June 30, 2018 was $80.8 million, compared to $88.1 million for the three months ended June 30, 2017. The reduction in Adjusted EBITDA is mainly related to the outage and planned maintenance described above and higher general and administrative expenses. The reconciliation of GAAP net income to EBITDA and Adjusted EBITDA is set forth below in this release.

 

Dividend

 

On August 7, 2018, the Company’s Board of Directors declared, approved and authorized payment of a quarterly dividend of $0.10 per share pursuant to the Company’s dividend policy. The dividend will be paid on August 29, 2018 to shareholders of record as of the close of business on August 21, 2018. In addition, the Company expects to pay quarterly dividends of $0.10 per share in the next quarter.

 

Conference Call Details

 

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Wednesday, August 8, at 9 a.m. ET. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat’s website.

 

An archive of the webcast will be available approximately 30 minutes after the conclusion of the live call.

Please ask to be joined into the Ormat Technologies, Inc. call.

 

Page 4/9

 

 

 

Participant telephone numbers

 

Participant dial in (toll free):     

1-877-511-6790

Participant international dial in:  

1-412-902-4141

Canada Toll Free:  

1-855-669-9657

   
Conference replay  
US Toll Free:   1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access Code: 10122171

 

About Ormat Technologies

 

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal Company and the only vertically integrated Company engaged in geothermal and recovered energy generation (REG), with the objective of becoming a leading global provider of renewable energy. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. With 77 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 530 employees in the United States and 770 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for vast range of resource characteristics. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,600 MW of gross capacity. Ormat’s current 862 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe. In March 2017, Ormat expanded its operations to provide energy storage and energy management solutions, by leveraging its core capabilities and global presence as well as through its Viridity Energy Solutions Inc. subsidiary, a Philadelphia-based Company with nearly a decade of expertise and leadership in energy storage, demand response and energy management.

 

Ormat’s Safe Harbor Statement

 

Information provided in this press release 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 statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Form 10-K/A and Form 10Q for the first quarter 2018, both filed with the SEC on June 19, 2018.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

Page 5/9

 

Ormat Technologies, Inc. and Subsidiaries

 

Ormat Technologies, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

For the Periods Ended June 30, 2018 and December 31, 2017

(Unaudited)

   

June 30,

   

December 31,

 
   

2018

   

2017

 
                 
   

(In thousands)

 

ASSETS

 

Current assets:

               

Cash and cash equivalents

  $ 66,696     $ 47,818  

Restricted cash, cash equivalents and marketable securities

    76,041       48,825  

Receivables:

               

Trade

    109,061       110,410  

Other

    20,731       13,828  

Inventories

    36,696       19,551  

Costs and estimated earnings in excess of billings on uncompleted contracts..

    46,573       40,945  

Prepaid expenses and other

    39,836       40,269  

Total current assets

    395,634       321,646  

Investment in an unconsolidated company

    66,551       34,084  

Deposits and other

    20,532       21,599  

Deferred income taxes

    102,162       57,337  

Deferred charges

          49,834  

Property, plant and equipment, net

    1,840,558       1,734,691  

Construction-in-process

    316,447       293,542  

Deferred financing and lease costs, net

    4,926       4,674  

Intangible assets, net

    207,206       85,420  

Goodwill

    40,133       21,037  

Total assets

  $ 2,994,149     $ 2,623,864  

LIABILITIES AND EQUITY

 

Current liabilities:

               

Accounts payable and accrued expenses

  $ 103,342     $ 153,796  

Short-term revolving credit lines with banks (full recourse)

    158,600       51,500  

Billings in excess of costs and estimated earnings on uncompleted contracts..

    16,136       20,241  

Current portion of long-term debt:

               

Limited and non-recourse:

               

Senior secured notes

    36,458       33,226  

Other loans

    21,495       21,495  

Full recourse

    5,000       3,087  

Total current liabilities

    341,031       283,345  

Long-term debt, net of current portion:

               

Limited and non-recourse:

               

Senior secured notes

    391,047       311,668  

Other loans

    230,973       242,385  

Full recourse:

               

Senior unsecured bonds

    303,527       203,752  

Other loans

    44,030       46,489  

Liability associated with sale of tax benefits

    70,574       44,634  

Deferred lease income

    49,973       51,520  

Deferred income taxes

    47,128       61,961  

Liability for unrecognized tax benefits

    9,637       8,890  

Liabilities for severance pay

    20,159       21,141  

Asset retirement obligation

    37,188       27,110  

Other long-term liabilities

    21,817       18,853  

Total liabilities

    1,567,084       1,321,748  
                 

Redeemable non-controlling interest

    8,268       6,416  
                 

Equity:

               

The Company's stockholders' equity:

               

Common stock

    51       51  

Additional paid-in capital

    892,601       888,778  

Retained earnings (accumulated deficit)

    405,353       327,255  

Accumulated other comprehensive income (loss)

    (2,297 )     (4,706 )
      1,295,708       1,211,378  

Noncontrolling interest

    123,089       84,322  

Total equity

    1,418,797       1,295,700  

Total liabilities and equity

  $ 2,994,149     $ 2,623,864  

 

Page 6/9

 

 

 

Ormat Technologies, Inc. and Subsidiaries

 

Ormat Technologies, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

For the Three and Six Months Periods Ended June 30, 2018 and 2017

(Unaudited)

 

   

Three Months Ended June 30

   

Six Months Ended June 30

 
   

2018

   

2017

   

2018

   

2017

 
                                 
   

(In thousands, except per share data)

   

(In thousands, except per share data)

 

Revenues:

                               

Electricity

  $ 122,179     $ 110,896     $ 254,668     $ 226,672  

Product

    54,915       67,587       103,587       141,709  

Other

    1,205       881       4,067       881  

Total revenues

    178,299       179,364       362,322       369,262  

Cost of revenues:

                               

Electricity

    81,236       63,196       154,718       129,232  

Product

    37,573       43,432       71,299       92,884  

Other

    2,028       2,243       5,471       2,243  

Total cost of revenues

    120,837       108,871       231,488       224,359  

Gross profit

    57,462       70,493       130,834       144,903  

Operating expenses:

                               

Research and development expenses

    1,251       1,050       2,359       1,652  

Selling and marketing expenses

    3,712       4,090       7,411       8,453  

General and administrative expenses

    15,866       12,201       29,719       22,150  

Write-off of unsuccessful exploration activities

                119        

Operating income

    36,633       53,152       91,226       112,648  

Other income (expense):

                               

Interest income

    189       362       302       606  

Interest expense, net

    (15,846 )     (14,540 )     (30,190 )     (29,463 )

Derivatives and foreign currency transaction gains (losses) .

    (529 )     1,703       (2,128 )     3,041  

Income attributable to sale of tax benefits

    3,556       4,356       10,917       10,513  

Other non-operating expense, net

    7,373       6       7,353       (86 )

Income before income taxes and equity in losses of investees

    31,376       45,039       77,480       97,259  

Income tax (provision) benefit

    (29,105 )     (32,765 )     (2,163 )     (43,769 )

Equity in losses of investees, net

    388       (428 )     1,598       (2,027 )
                                 

Net income

    2,659       11,846       76,915       51,463  

Net income attributable to noncontrolling interest......

    (3,002 )     (3,206 )     (7,750 )     (7,629 )

Net income attributable to the Company's stockholders...

  $ (343 )   $ 8,640     $ 69,165     $ 43,834  
                                 

Earnings per share attributable to the Company's stockholders - Basic and diluted:

                 

Basic:

                               

Net Income

  $ (0.01 )   $ 0.17     $ 1.37     $ 0.88  
                                 

Diluted:

                               

Net Income

  $ (0.01 )   $ 0.17     $ 1.36     $ 0.87  
                                 

Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:

                               

Basic

    50,623       49,771       50,618       49,726  

Diluted

    50,958       50,624       51,001       50,559  

 

Page 7/9

 

 

 

Ormat Technologies, Inc. and Subsidiaries

Reconciliation of EBITDA and Adjusted EBITDA

For the Three and Six Months Periods Ended June 30, 2018 and 2017

(Unaudited)

 

 

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) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain from extinguishment of liability, and (viii) gain on sale of subsidiary and property, plant and equipment. EBITDA and Adjusted EBITDA are not a measurement of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a Company’s ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

 

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and six-month periods ended June 30, 2018 and 2017.

 

   

Three Months Ended June 30

   

Six Months Ended June 30

 
   

2018

   

2017

   

2018

   

2017

 
                                 
   

(in thousands)

   

(in thousands)

 

Net income

  $ 2,659     $ 11,846     $ 76,915     $ 51,463  

Adjusted for:

                               

Interest expense, net (including amortization of deferred financing costs)

    15,657       14,178       29,888       28,857  

Income tax provision

    29,105       32,765       2,163       43,769  

Adjustment to investment in uncosolidated company:

                           

our proportionate share in interest, tax and depreciation and amortization ..

    4,454             7,984          

Depreciation and amortization

    31,859       25,749       61,296       51,290  

EBITDA

  $ 83,734     $ 84,538     $ 178,246     $ 175,379  
                                 

Mark-to-market gains or losses from accounting for derivatives

    537       (940 )     1,499       (2,463 )

Stock-based compensation

    2,116       3,630       3,823       5,343  

Gain on sale of subsidiary and property, plant and equipment

                       

Insurance proceeds in excess of assets carrying value

    (7,150 )           (7,150 )      

Losse from extinguishment of liability

                       

Settlement expenses

                       

Impairment of long-lived assets

                       

Merger and acquisition transaction cost

    1,571       900       2,670       1,700  

Write-off of unsuccessful exploration activities

                119        

Adjusted EBITDA

  $ 80,808     $ 88,128     $ 179,207     $ 179,959  

 

Page 8/9

 

 

 

Ormat Technologies, Inc. and Subsidiaries

Reconciliation of Adjusted Net Income Attributable to the Company's Shareholders

For the Three and Six Months Periods Ended June 30, 2018 and 2017

(Unaudited)

 

   

Three Months Ended June 30

 
   

2018

   

2017

 
                 
   

(in thousands)

 

Net income attributable to the Company's stockholders

  $ (0.3 )   $ 8.6  
                 

One-time settlement expenses

               
                 

One-time prepayment fees

               
                 

One-time tax Expense

    16.9       20.9  
                 

Adjusted net income attributable to the Company's stockholders

  $ 16.6     $ 29.5  
                 

Weighted average number of shares diluted used in computation of earnings per share attributable to the Company's stockholders:

    51.0       50.6  
                 

Adjusted EPS

    0.32       0.58  

 

Page 9/9

 

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