WOODSTOCK, Minn., April 5, 2011 /PRNewswire/ -- Juhl Wind, Inc. (OTCBB: JUHL), the Leader in Community Wind Power, held its 2010 Earnings Call and 2011 Outlook on Monday, April 4th and today the Company is providing a summary of the highlights from the call. The call was hosted by Juhl's President, John Mitola and its Chief Financial Officer, John Brand.
"Its very significant for our investors to note that we believe our company has completed more work on wind farms over the past year and a half than any other independent, publicly traded wind development company in the United States," stated John Mitola. "When you consider the fact that we have built or are in the process of completing six wind farms over this past year or so, totaling approximately $150 million in value, we think that level of activity is unmatched in the market."
"In the management discussion and analysis section of our 10K, we highlighted our subsequent events and reported that we received cash deposits in March of approximately $2.5 million," added John Brand. "These deposits exclude the receipt of $1 million we received in March from an advance of the sale of our development rights to a 40MW project, and we expect to receive an additional $1.8 million in April 2011 as a last installment on the Adams and Danielson projects. A substantial portion of our development fee revenues are going to be recognized in first and second quarters of 2011 since our revenue recognition accounting policy on this fee revenue essentially has us recording these fees upon the financial closing of a project. Thus, we expect approximately $5 million of development fee revenue will be recorded in the first and second quarters."
"We intend to use the cash we have coming in, coupled with our credible position in the market, to execute on a variety of strategic growth initiatives," continued John Mitola. "While our revenue for the year ended 2010 was down from 2009, our actual total development and construction activity that we were managing was way up with our work on those six projects and we are seeing the results of that work through the receipt of our development fee cash to our balance sheet. In addition to the $5 million of fee revenue John Brand described, we expect to derive another $1 to $1.5 million in fees from the completion of permanent financings on two other projects. So, we expect our cash position to be quite strong going into the second half of 2011."
"While our revenue for the year ended 2010 was approximately $6,268,000 compared to approximately $11,676,000 for 2009, or a decrease of 46%, we had twice as many projects under construction as we crossed into 2011 then we did at the end of 2009," stated John Brand. "This decrease needs some further explanation as you wouldn't necessarily know that our activity was up. There were changes in our construction responsibilities and turbine supply arrangements that led to a reduction in revenue recognition. Namely, in two of the projects, we acted in the role of a construction advisor as opposed to a general contractor. In addition to that, in one of the projects, revenue was eliminated under U.S. GAAP treatment as we had to take into account that the project was a variable interest entity, or VIE. The VIE rules require us to consolidate the project into our financials. And that's why you see some references on our balance sheet and income statement to a 'non-controlling interest'".
"We plan to use the strength of our balance sheet to help us continue to organically build the steady side of our revenue – our administrative services, operations and maintenance of our wind farms," continued Mitola. "And, in addition to that organic growth, we have begun the process of looking for strategic acquisitions to 'bolt on' to our core business. We have positioned the Company to take advantage of the growth occurring in the community wind industry and are now actively seeking acquisitions in other segments of our industry, such as wind farm management and turbine maintenance services. Management feels it is appropriate to focus on three areas of acquisitions."
"First, we are looking for additional wind services businesses – these would include other O&M providers and wind consulting providers. Second, we have developed a strategy where we may acquire ownership of existing wind farms that fit our distributed generation model and the size range of projects we typically develop – usually well under 100 megawatts in size. Lastly, given the fact that so many other independent developers have been unable to move projects forward in their own pipeline, we have begun looking to acquire or joint venture with other industry partners on specific projects. Our preferred model is to put together a joint venture on projects that can share with us the various elements of fee and profit – which include development fee, general construction, construction management and O&M. Since our team knows so many of the players in this industry, we have a wide array of projects to review that meet the criteria. This strategy could help us dramatically increase our project pipeline going forward. And since so much of the 'valuation' of wind development companies is derived from the size of their pipeline, we think this is a part of our business that will provide us with beneficial results."
"What we believe this all means for investors and for the underlying value of Juhl Wind, is that if we do nothing other than continue the development of the 20-odd wind projects in our pipeline, we will be continuing to grow our balance sheet over time and in turn increase shareholder value in 2011. If we are successful with a portion of the above-referenced acquisition strategy, we should also see solid increases in our top line revenue and operating income as well."
A complete replay of the recent year end teleconference will be available until April 18th, 2011, which can be accessed by dialing (877) 660-6853 if calling within the United States or (201) 612-7415, if calling internationally. Please enter account #286 and conference ID #370278 to access the replay. The web cast will also be available for review within the Investor Info section of the Juhl Wind home page at http://www.ir-site.com/juhlwind/index.asp.
About Juhl Wind, Inc.
Juhl Wind is an established leader in Community Based Wind Power development and management, focused on wind farm projects throughout the United States and Canada. Juhl Wind pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 18 wind farm projects and provides operations management and oversight across the portfolio. Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction and system operations and maintenance. With its acquisition of Next Generation Power Systems, Juhl Wind now provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Juhl Wind is based in Woodstock, Minnesota and is traded on the OTCBB under the symbol JUHL.OB. Additional information is available at the Company's website at www.juhlwind.com or by calling 877-584-5946 (or 877-JUHLWIN).
Juhl Wind Investor Relations
Phone: (888) 438-JUHL (5845)
Email: [email protected]
FORWARD LOOKING STATEMENTS
This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Wind's current expectations about its future results, performance, prospects and opportunities. Juhl Wind has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Wind and are subject to a number of risks, uncertainties and other factors that could cause Juhl Wind's actual results, performance, prospects or opportunities in the remainder of 2011 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks are referenced in Juhl Wind's current 10K or as may be described from time to time in Juhl Wind's subsequent SEC filings; and such factors as incorporated by reference.
SOURCE Juhl Wind, Inc.