Primary Energy announces tax shield extension
OAK BROOK, IL, Jan. 29, 2013 /PRNewswire/ - Primary Energy Recycling Corporation (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced it has received a favorable determination from the IRS regarding the Company's 2009 corporate income tax filing. The IRS issued a report indicating that no changes were required. This outcome allows the Company to record a previously unrecognized net operating loss (NOL) carryfoward of US$32.6 million.
"The IRS decision provides the Company with a reduction in future tax expenses of approximately US$12.8 million," said John Prunkl, President and Chief Executive Officer of Primary Energy Recycling. "With the addition of these NOLs, Primary Energy Recycling's NOL carryforward balance will be approximately US$80.0 million, which is estimated to provide the Company with a tax shield extension to 2018-2019."
The US$32.6 million NOL carryforward is related to the cancellation-of-debt gain from Primary Energy Recycling's 2009 recapitalization. The adjustment will be reflected in the Company's 2012 financial statements.
About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation, headquartered in Oak Brook, Illinois, owns and operates four recycled energy projects and a 50 per cent interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 293 megawatts and a combined steam generating capacity of 1.8M lbs/hour. Primary Energy Recycling Corporation creates value for its customers by capturing and recycling waste energy from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for resale back to its customers. For more information, please see www.primaryenergy.com.
When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining, but not limited to, the anticipated benefits of the IRS decision described in this press release, operating performance, regulatory parameters, weather and economic conditions and other factors discussed in the Company's public filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances except as required by applicable securities laws.
SOURCE Primary Energy Recycling Corporation