Ormat Technologies Reports First Quarter 2011 Results

RENO, Nevada, May 4, 2011 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the first quarter of 2011.

Quarterly highlights:  

• An 18% increase in total revenues year-over-year;
• A 14% increase in electricity generation;
• Continuing operational challenges in North Brawley resulting in quarterly loss;
• Increase in Product Segment backlog;
• Acquired lease rights on 8,000 acres and option to leases on 264,000 acres of privately held land.

Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: "Total revenue increased 18.4% driven by strong results in both our Electricity and Product Segments.  Facilities added in the past year and the performance of most of our plants translated into growth in generation and in revenue, which increased to $78.3 million. Excluding North Brawley, gross margin from this segment in the first quarter of 2011 would have been approximately 30%.

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While generation from North Brawley continued to increase and recently demonstrated capacity of 33 MW, operating costs remain high, affecting profitability in the segment and masking the achievements of our other plants. We continue with our efforts to address the operational issues, reduce O&M costs and increase the generation of the power plant.

During the quarter, we had further success in our Product Segment entering into new contracts for the supply of geothermal power plants and other power generating units outside of the United States.  Product Segment backlog increased to approximately $84 million and we expect that the backlog of this segment will continue to grow with additional opportunities from international markets.

To support future development, we entered into agreements that will allow us to explore and develop projects on large blocks of privately owned land in the Pacific Northwest, which are not subject to the same delays that we experience on federal lands. Work on our early and advanced-stage projects continued to progress and we expect to add up to 220 MW to our generating capacity by the end of 2013."

For the three months ended March 31, 2011, total revenues were $97.8 million, compared to $82.7 million in the first quarter of 2010. Electricity Segment revenues increased by 18.4% to $78.3 million, up from $66.1 million in the first quarter of 2010. Total generation increased by 14.2% and the average revenue rate of the Company's Electricity Segment was $75 per MWh.  Product Segment revenues increased by 18.1% to $19.6 million, up from $16.5 million in the first quarter of 2010.

For the quarter, the Company reported net loss of $9.0 million, or $0.20 per share (basic and diluted), compared to net income of $1.8 million, or $0.04 per share (basic and diluted), for the same period a year ago. The decrease is principally attributable to the North Brawley power plant which had a pre-tax loss of approximately $10.3 million.

Adjusted EBITDA for the first quarter of 2011 was $27.2 million, compared to $32.1 million in the same quarter last year. Adjusted EBITDA includes consolidated EBITDA and the Company's share in the interest, taxes, depreciation and amortization related to its unconsolidated 50% interest in the Mammoth complex in California in the three months ended March 31, 2010. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA and additional cash flows information is set forth below.

As of March 31, 2011, cash, cash equivalents and marketable securities were $64.8 million. In addition, as of March 31, 2011, the Company has available committed lines of credit with commercial banks aggregating $402.5 million, of which $223.7 million is unused.

On May 4, 2011, Ormat's Board of Directors approved the payment of a quarterly dividend of $0.04 per share pursuant to the Company's dividend policy, which targets an annual payout ratio of at least 20% of the Company's net income.  The dividend will be paid on May 25, 2011 to shareholders of record as of the close of business on May 18, 2011.  The Company expects to pay a dividend of $0.04 per share in the next two quarters.

Commenting on the outlook for 2011, Ms. Bronicki said, "We continue to expect 2011 Electricity Segment revenues to total $315 to $325 million; in the Product Segment we are updating our revenues guidance to $80 to $85 million."

Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 9:00 A.M. EDT on Thursday, May 5, 2011.  The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the Webcast & Presentations in the Investor Relations section of Ormat's website.

The webcast will be available approximately 2 hours after the conclusion of the live call. A replay will be available from available from 1 p.m. EDT on May 5, 2011. Please call: (800) 642-1687 (U.S. and Canada) (706) 645-9291 (International) and enter the Reply code: 60633905.

About Ormat Technologies

Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 75 U.S. patents. Ormat has engineered and built power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1,300 MW of gross capacity.  Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.

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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2011.

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.

SOURCE Ormat Technologies, Inc.