Primary Energy Reports Fourth Quarter and Year End Results

Mar 09, 2011, 23:17 ET from Primary Energy Recycling Corporation

- Revenue Up 6.6% in 2010, Adjusted EBITDA 7.5% Higher - 

OAK BROOK, IL, March 9 /PRNewswire-FirstCall/ - Primary Energy Recycling Corporation (the "Company" or "Primary Energy") (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced its financial and operational results for the fourth quarter and year ended December 31, 2010.

Financial Highlights              

(in 000's of US$) Q4 2010 Q4 2009 Change 12-
Months
2010
12-
Months
2009
Change
Revenue $15,423 $15,329 + 0.6% $61,235 $57,462 + 6.6%
Operations and maintenance expense $  3,033 $  2,286 + 32.7 % $13,968 $10,337 + 35.1%
Operating (loss) income $(1,715) $  2,290 $(4,005) $  151 $  2,655 $(2,504)
Net income (loss) and comprehensive income (loss) $17,735 $(2,824) $20,559 $13,370 $  7,692 $ 5,678
1Adjusted EBITDA $10,074 $  9,975  + 1.0% $40,157 $37,358    + 7.5%
Net cash provided by operating activities   $  7,516 $  5,064 + 48.4% $31,457 $12,207 + 157.7%
2Adjusted Cash Flow $10,074 $  9,975 + 1.0% $40,157 $37,358   + 7.5%
Cash & cash equivalents   $22,467 $24,536 - 8.4% - - -
Credit facility debt $71,366 $105,000 - 32.0% - - -

Fourth Quarter and 2010 Highlights

  • Reported 2010 revenue of $61.2 million, representing a 6.6% increase over 2009 revenue;

  • Net income for the fourth quarter of 2010 was $17.7 million compared to a net loss of $2.8 million for the fourth quarter of 2009, an improvement of $20.5 million. The improvement was primarily due to the $19.8 million reduction of the tax valuation allowance offset by $3.3 million for stock based compensation;

  • Recorded $40.2 million of Adjusted EBITDA in 2010 compared to $37.4 million of Adjusted EBITDA in 2009, an increase of 7.5%;  

  • Interest expense for the fourth quarter of 2010 was $2.0 million compared to $3.8 million for the fourth quarter of 2009, a decrease of $1.8 million. Interest expense in 2010 was $9.6 million compared to $17.8 million in 2009, a decrease of $8.2 million. The year-over-year decrease is primarily due to the reduced level of debt outstanding partially offset by increased amortization of deferred finance fees during 2010;

  • Received notification from Corporate Knights Magazine, a prominent corporate social responsibility publication, that it chose Primary Energy to be one of its 2010 Cleantech 10™ companies;

  • Agreed to extend the Ironside contract until April, 2020 as compensation for delayed restart of the facility by the site host;  

  • Subsequent to quarter end, announced the signing of an interim agreement with the site host to proceed with upgrading the capacity of its North Lake Energy facility by 20%. The upgrades will re-rate the existing steam turbine generator, as well as certain key plant equipment, to 90 megawatts in a two-phase plan. Proceeding with the pre-specified upgrade work with the host's initial $3.1 million reimbursement commitment, subsequently increased to $4.2 million demonstrates the depth of cooperation between the two parties, and shows the mutual desire to keep the project on schedule;

  • Subsequent to quarter end, announced an agreement with the host to amend the contract related to the Harbor Coal joint venture. The terms of the amendment include Primary Energy agreeing to a tolling fee reduction on the project in return for the elimination of any responsibility for operation and maintenance costs on the project going forward.

"In the fourth quarter, and in 2010 in general, Primary Energy continued its emergence as a leading cleantech company that makes a positive impact on the environment while simultaneously generating significant amounts of revenue," said John Prunkl, President and Chief Executive Officer of the Company. "Our technology offers customers a compelling combination of lower costs, reduced emissions and higher reliability than they would realize with other renewable sources. Looking forward, we view 2011 as a period during which we can build on the past year's momentum through the successful renegotiations of some of our key contracts, and the expedited repayment of our debt." 

Operational Highlights

  Q4 2010 Q4 2009 Change 12-
Month
2010
12-
Month
2009
Change
3Total Gross Electric Production Megawatt Hours (MWh) 318,780 263,645 +20.9% 1,179,259 1,039,936 13.4%
4Total Thermal Energy Delivered (MMBtu) 1,319,925 1,511,163 -12.7% 5,069,081 5,431,856 -6.7%
5Harbor Coal Utilization (%) 81.4% 85.6%   -4.2% 85.7% 69.4% 16.3%


IFRS Impact
The adoption of IFRS is going to impact the Company's 2011 financials. From an income standpoint, it's expected that the Company will have a higher amount of depreciation as a result of the componentization of the major aspects of property plant and equipment along with the capitalization of overhaul activity that previously had been expensed as part of operations and maintenance expenses. 

Additionally, the reporting of the financial activity of the Company's investment in the PCI partnership will be impacted due to the use of the equity method versus the proportionate consolidation method. 

Outlook
Operations
We expect continued robust performance of our facilities through 2011, with financial results expected to be consistent with those achieved in 2010. We expect modest increases in the United States steel production with continued strong performance from the mills we serve. 

We anticipate that the North Lake contract will be renewed before the May, 2011 termination date and the new contract will require facility output be upgraded by 20%. A four-week outage at the North Lake facility is scheduled for the first quarter of 2011 to repair damage to a steam turbine experienced in July, 2010 and to perform preliminary work associated with the likely facility up-grade. Final up-grade work is expected to occur during a four-week outage in the second quarter of 2012. The total estimated cost of both outages and other up-grade work is $9 - $11 million, with $5 - $6 million being incurred in 2011 and $4 - $5 million being incurred in 2012. 

Other than the North Lake outage discussed above, there are no other extended outages scheduled for any facility during 2011. Operating and maintenance costs and general and administrative costs are assumed to be in line with 2010. An increase in boiler repair activities at the Cokenergy facility is planned for the upcoming year where an additional $0.5 million has been budgeted in 2011 compared to 2010 expenditures for similar work.

Other Activities
We continue to look for opportunities to purchase the 14.3% interest in PERH, indirectly owned by Capital Power Income LP ("Capital Power"), to buy out the management agreement between an affiliate of Capital Power and the Company and to internalize all management functions.

The Portside Energy revenue contract expires in August of 2013. We anticipate there will be significant work on the contract renewal in 2011 with the potential for reaching an extension agreement in 2011. As part of the renewal process we will explore the opportunity to add new equipment or services that would facilitate a longer extension than the five year extension option the current contract provides to the host.

The Cokenergy contract expires in September of 2013. It consists of bilateral agreements between Cokenergy and the site host and between Cokenergy and the operator of an adjoining coke plant. The coke plant operator has contracts with the site host that are coterminous with Cokenergy's contracts. Cokenergy's renewal negotiations will either be conducted in parallel or following completion of the site host's and the coke plant operator's negotiations to allow Cokenergy's obligations to be coordinated with the coke plant obligations.

The Company does not expect to reinstate a regular dividend in 2011, but does recognize the value of a dividend to many shareholders. We believe a regular dividend should only be initiated when there is confidence that the payments can continue long term, without interruption. The Board intends to reevaluate the dividend policy after the contracts for the North Lake, Portside and Cokenergy plants have been renewed.  

We continue to evaluate our options to refinance the senior debt. Our decision will be based on a number of factors, including the willingness of Capital Power to sell their interest in PERH, the expected timing of contract renewals for Portside and Cokenergy, potential needs for growth capital, credit agreement terms, and other factors. Should we choose not to refinance, we continue to expect to repay the full loan balance by the end of 2012.

We are actively evaluating potential growth strategies that may be available. Potential implementation of a growth strategy will take into account factors including market needs, expected returns on capital deployed, execution risks, management expertise, and expected impact on shareholder value. The Company has budgeted $0.5 million to be spent in 2011 on this evaluation.

Fourth Quarter and 2010 Financial Results
The Company's revenue of $15.4 million in the fourth quarter of 2010 increased $0.1 million, or 0.6%, compared with revenue of $15.3 million for the fourth quarter of 2009. The Company's revenue of $61.2 million in 2010 increased $3.7 million, or 6.6%, compared with revenue of $57.5 million in 2009. The increase for both the quarter-over-quarter and year-over-year periods is related to the variable portion of Energy Service revenue and improved market conditions in the steel industry, which resulted in increased steel production at the Company's site hosts.  

Operating and maintenance expense for the fourth quarter of 2010 was $3.0 million compared to $2.3 million for the fourth quarter of 2009, an increase of $0.7 million or 32.7%. The increase was primarily because of additional expenses of $0.7 million associated with boiler repairs, cooling tower system work, bag house expenditures and general maintenance. 

Operating and maintenance expense in 2010 was $14.0 million compared to $10.3 million in 2009, an increase of $3.7 million or 35.1%. The increase was largely because of additional expenses of $2.7 million incurred for boiler repairs, air filtration and bag house expenditures, and the Portside steam turbine outage expense, which cost approximately $0.7 million

General and administrative expense for the fourth quarter of 2010 was $2.4 million compared to $2.3 million for the fourth quarter of 2009, an increase of $0.1 million or 3.5%. The increase was primarily due to additional professional fees of $0.3 million offset by a $0.2 million reduction in compensation costs.

General and administrative expense in 2010 was $10.1 million compared to $10.5 million in 2009, a decrease of $0.4 million or 4.1%. The decrease is mainly due to reductions in professional fees of $0.9 million, retention based payroll costs of approximately $0.3 million and management fees of $0.2 million related to 2009 business restructuring activities that did not recur in 2010.  

Operating loss for the fourth quarter of 2010 was $1.7 million compared to operating income of $2.3 million for the fourth quarter of 2009, a decrease of $4.0 million. The decrease is the result of the non-cash charge for stock based compensation recorded in the fourth quarter of 2010. Operating income in 2010 was $0.2 million compared to $2.7 million in 2009, a decrease of $2.5 million

Interest expense for the fourth quarter of 2010 was $2.0 million compared to $3.8 million for the fourth quarter of 2009, a decrease of $1.8 million. This decrease is primarily due to the reduced level of debt outstanding partially offset by increased amortization of deferred finance fees during the fourth quarter of 2010. Interest expense in 2010 was $9.6 million compared to $17.8 million in 2009, a decrease of $8.2 million. This decrease is mostly due to the reduced level of debt outstanding partially offset by increased amortization of deferred finance fees during 2010.

Net income for the fourth quarter of 2010 was $17.7 million compared to a net loss of $2.8 million for the fourth quarter of 2009, an improvement of $20.5 million. The improvement was primarily due to the $19.8 million reduction of the tax valuation allowance partially offset by the additional expense of $3.3 million for stock based compensation and the result of the net effect of the other items discussed above.

Net income in 2010 was $13.4 million compared to $7.7 million in 2009, an improvement of $5.7 million. The improvement was primarily due to the $19.8 million reduction of the tax valuation allowance partially offset by the additional expense of $3.3 million for stock based compensation and the gain on cancellation of debt in 2009 and the result of the net effect of the other items discussed above.

At the end of the fourth quarter, the Company had cash and cash equivalents of $22.5 million, a fully funded $3.0 million debt service reserve account, and an outstanding loan balance of $71.4 million. Since the end of 2009, $33.6 million has been paid down on the Company's senior credit facility. 

The Company's full financial statements and Management's Discussion and Analysis are available at www.sedar.com or the Company's website at www.primaryenergyrecycling.com.

Conference Call and Webcast
Management will host a conference call to discuss the fourth quarter results on Thursday, March 10, 2011, at 10 am ET. Following management's presentation, there will be a question and answer session. To participate in the conference call, please dial (888) 231-8191 or (647) 427-7450.

A digital conference call replay will be available until midnight on March 17, 2011 (ET) by calling (800) 642-1687 or (416) 849-0833. Please enter the passcode 44509558 when instructed.

A webcast replay will be available for 90 days by accessing a link through the Investor Information section at www.primaryenergyrecycling.com.

Forward-Looking Statements
When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast", "outlook" 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 recovery in the steel industry, continued strong performance from the mills we serve consistent with historic patterns, timely renewal of contracts at the Company's facilities, no protracted outages (planned or unplanned) for any of our facilities (except as described in this press release), operating and maintenance costs and general and administrative costs being similar to recent years except as described in this press release, regulatory parameters, weather and economic conditions and other factors discussed in the Company's public filings available on SEDAR at www.sedar.com. Additional risks and uncertainties not currently known or that are currently deemed to be immaterial may also materially and adversely affect the Company's business operations and outlook. Any of the matters highlighted in the Company's risk factor disclosure could have a material adverse effect on the Company's results of operations, business prospects and outlook, financial condition or cash flow, in which case, the market price or value of the Common Shares could be adversely affected. 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.

About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation owns a majority interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly 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 283 megawatts and a combined steam generating capacity of 1.8M lbs/hour. PERH creates value for its customers by recycling recoverable heat and byproduct fuels 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.primaryenergyrecycling.com.

Non-GAAP Measures
The Company reports its financial results in accordance with generally accepted accounting principles in Canada ("GAAP"). The Company's management also evaluates and makes operating decisions using various other measures.  Two such measures are Adjusted EBITDA and Adjusted Cash Flow, which are non-GAAP financial measures. We believe these measures provide useful supplemental information regarding the performance of Company's business.

1As used herein Adjusted EBITDA means earnings before interest, taxes, depreciation and amortization and certain other adjustments as noted in the table below as well as adjustments for ARO accretion and certain one time adjustments including major maintenance/outage work expenses, general and administrative expense ('G&A") adjustments, and property tax adjustments.  The Adjusted EBITDA is reconciled to net loss in the table below.  Adjusted EBITDA is not a recognized measure under GAAP and does not have standardized meanings prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other companies.

                         
Reconcilation of Net Income to Adjusted EBITDA                
(in 000's of US$, except per share data)   Three Months Ended December 31,   For the Years Ended December 31,
            2010   2009   2010   2009
                         
Net income (loss)       $            17,735   $            (2,824)   $            13,370   $             7,692
Adjustment to net income (loss):                  
  Depreciation and amortization     8,428   8,473   33,712   33,954
  Interest expense       1,979   3,810   9,618   17,819
  Deferred finance fees upon extinguishment of debt   -   1,246   -   1,246
  Gain on cancelation of debt     -   -   -   (32,609)
  Realized and unrealized (gain) loss on derivative contracts   (2)   145   182   (2,941)
  Realized and unrealized loss on foreign currency translation   -   -   -   10,716
  Income tax (benefit) expense     (20,633)   1,086   (19,175)   3,806
  Non-controlling preferred interest     -   -   -   970
  Non-controlling common interest     (794)   (1,173)   (3,844)   (4,044)
EBITDA         6,713   10,763   33,863   36,609
                         
Adjustments to EBITDA:                    
  ARO accretion                           45                       62                     178                     249
  Major maintenance/outage work                         -                         -                    2,800                     400
  General and administrative                         -                         -                         -                    1,700
  Non-cash stock based compensation                  3,316                       -                    3,316                       -  
  Property tax                            -                      (850)                       -                   (1,600)
Adjusted EBITDA        $           10,074    $            9,975    $           40,157    $           37,358
                         

2As used herein, Adjusted PERC Cash Flow means Net Cash Provided by Operating Activities as adjusted for Non-Cash Interest Expense, Interest Expense, changes in working capital and certain non-recurring adjustments for major maintenance/outage work expenses, G&A adjustments, and annualized property tax adjustments.  These amounts, except the specified adjustments, are derived from those reflected in the income statement and statement of cash flows of publicly filed financial statements.  The specified adjustments are reconciled on the table below.  Adjusted PERC Cash Flow is not a recognized measure under GAAP and does not have standardized meanings prescribed by GAAP. Therefore, Adjusted PERC Cash Flow may not be comparable to similar measures presented by other companies.

Reconcilation of Net Cash Provided By Operating Activitie to Adjusted Cash Flow                  
(in 000's of US$, except per share data)   Three Months Ended December 31,   For the Years Ended December 31,
            2010   2009   2010   2009
                         
Net cash provided by operating activities   $             7,516   $             5,064   $            31,457   $            12,207
                         
Less: non-cash interest expense     (634)   (1,143)   (3,569)   (3,126)
Plus: interest expense       1,979   3,810   9,618   17,819
Plus: changes in working capital     1,213   3,094   (149)   9,958
Subtotal         10,074   10,825   37,357   36,858
                         
Adjustments:                      
  Plus: major maintenance/outage work                       -                         -                    2,800                     400
  Plus: general and administrative                        -                         -                         -                    1,700
  Plus: annualized property tax                         -                      (850)                       -                   (1,600)
  Total Adjustments                           -                      (850)                  2,800                     500
Adjusted Cash Flow        $           10,074    $            9,975    $           40,157    $           37,358
                         

3 Total Gross Electric Production means the aggregate amount of electricity produced by all of the Company's facilities during the period. The amount is gross generation and is not reduced by internal electric usage of the facilities' auxiliary equipment. The unit of measure is megawatt hours (MWh).  Due to the fixed and variable nature of customer contracts, MWh production cannot be directly tied to financial performance.  

4 Total Thermal Energy Delivered means the aggregate amount of heat energy contained in the steam and heated water delivered to customers by all of the Company's facilities during the period. The unit of measure is million of British Thermal Units (MMBTU). Due to the fixed and variable nature of customer contracts, MMBTU production cannot be directly tied to financial performance.

5 Harbor Coal Utilization is a factor that incorporates the production level of a blast furnace and the amount of coal utilization per unit of blast furnace production as compared to a reference blast furnace production level and coal utilization rate per unit of blast furnace production. The measurement unit is a ratio expressed as a percentage.

Management believes that Adjusted EBITDA, Adjusted PERC Cash Flow, Total Gross Electric Production, Total Thermal Energy Delivered and Harbor Coal Utilization provide useful supplemental information regarding the performance of the Company, facilitate comparisons of historic periods and are indicative of the Company's operating results.  Note however, these items are performance measures only, and do not provide any measure of the Company's cash flow or liquidity, and are not a substitute for GAAP financial measures.

Primary Energy Recycling Corporation
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
                     
ASSETS       December 31, 2010   December 31, 2009
                     
Current assets:        
  Cash and cash equivalents   $                22,467   $                24,536
  Accounts receivable   9,330   9,532
  Spare parts inventory   1,005   991
  Current portion of future tax asset    745   1,003
  Other current assets   1,243   833
Total current assets   34,790   36,895
                     
Non-current assets:        
  Property, plant and equipment    209,935   219,377
  Contract rights    76,754   100,964
  Restricted cash    2,991   3,729
  Net long-term portion of future tax asset    4,595   -
  Interest rate cap contract and other non-current assets   4   220
Total assets   $               329,069   $               361,185
                     
LIABILITIES, NON-CONTROLLING INTEREST        
  AND SHAREHOLDERS' EQUITY        
                     
Current liabilities:        
  Accounts payable   $                     361   $                     253
  Short-term debt   32,672   28,341
  Due to affiliates    604   478
  Accrued property taxes   2,083   2,520
  Accrued expenses   2,467   2,631
Total current liabilities   38,187   34,223
                     
Non-current liabilities:        
  Long-term debt    35,467   69,887
  Net long-term portion of future tax liability    -   14,680
  Asset retirement obligation    2,604   2,426
Total liabilities   76,258   121,216
                     
Commitments and contingencies         
                     
Non-controlling common interest    82,081   85,925
                     
Shareholders' equity:        
Common stock    274,479   274,479
Contributed surplus    3,316   -
Accumulated shareholders' deficit   (107,065)   (120,435)
Total shareholders' equity   170,730   154,044
Total liabilities, non-controlling        
   interest and shareholders' equity   $               329,069   $               361,185
                     

Primary Energy Recycling Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS AND
ACCUMULATED SHAREHOLDERS' DEFICIT
(In thousands of U.S. dollars, except share and per share amounts)
                         
            For the three months Ended December 31,   For the Years Ended December 31,
            2010   2009   2010   2009
                         
Revenue:                      
  Capacity         $                   9,018   $                   9,018   $                 36,071   $                 36,071
  Energy service       6,405   6,311   25,164   21,391
            15,423   15,329   61,235   57,462
Expenses:                      
  Operations and maintenance     3,033   2,286   13,968   10,337
  General and administrative     2,361   2,280   10,088   10,516
  Non-cash stock based compensation    3,316   -   3,316   -
  Depreciation and amortization     8,428   8,473   33,712   33,954
                         
Operating income        (1,715)   2,290   151   2,655
Other (expense) income                   
  Interest expense, net      (1,979)   (3,810)   (9,618)   (17,819)
  Deferred finance fees expensed upon extinguishment of debt    -   (1,246)   -   (1,246)
  Gain on cancellation of debt      -   -   -   32,609
  Realized and unrealized (loss) gain on derivative                  
    contracts       2   (145)   (182)   2,941
  Realized and unrealized loss on foreign                 
    currency translation      -   -   -   (10,716)
                         
(Loss) income before income taxes and non-controlling interest   (3,692)   (2,911)   (9,649)   8,424
Income tax benefit (expense)      20,633   (1,086)   19,175   (3,806)
                         
Income before non-controlling interest   16,941   (3,997)   9,526   4,618
Non-controlling preferred interest      -   -   -   (970)
Non-controlling common interest      794   1,173   3,844   4,044
                         
Net income and comprehensive income   $                 17,735   $                  (2,824)   $                 13,370   $                   7,692
                         
                         
Weighted average number of shares outstanding - basic    134,118,561   89,950,391   134,118,561   28,203,469
Weighted average number of shares outstanding - diluted    134,289,915   89,950,391   134,289,915   28,203,469
Basic and diluted net income per share     $                   0.13    $                  (0.03)    $                   0.10    $                   0.27
                         



Primary Energy Recycling Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS AND
ACCUMULATED SHAREHOLDERS' DEFICIT
(In thousands of U.S. dollars, unless specified)
                             
                Three Months Ended December 31,   For the Years Ended December 31,
                2010   2009   2010   2009
                             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss) and comprehensive income (loss)    $                     17,735    $                      (2,824)    $                     13,370    $                        7,692
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
  Depreciation and amortization   8,428   8,473   33,712   33,954
  Realized and unrealized loss (gain) on derivative contracts     (2)     145     182     (2,941)
  Realized and unrealized loss on foreign currency translation   -   -   -   10,716
  Deferred finance fees expensed upon extinguishment of debt   -   1,246   -   1,246
  Gain on cancellation of debt   -   -   -   (32,609)
  Non-cash interest expense   634   1,143   3,569   3,126
  Non-cash stock based compensation   3,316   -   3,316   -
  Non-controlling preferred interest   -   -   -   970
  Non-controlling common interest   (794)   (1,173)   (3,844)   (4,044)
  Income tax (benefit) expense    (20,633)   1,086   (19,175)   3,806
  Accretion of asset retirement obligations   45   62   178   249
                8,729   8,158   31,308   22,165
  Net change in non-cash working capital balances   (1,213)   (3,094)   149   (9,958)
  Net cash provided by operating activities   7,516   5,064   31,457   12,207
                             
CASH FLOWS FROM INVESTING ACTIVITIES:                
  Change in restricted cash   373   (3,729)   738   (3,729)
  Net cash settlement from derivative contracts    -   (331)   -   (2,032)
  Capital expenditures   (17)   (3)   (17)   (33)
  Net cash provided by (used in) investing activities   356   (4,063)   721   (5,794)
                             
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from issuance of debt   -   105,000   -   105,000
Proceeds from the Rights Offering   -   50,000   -   50,000
Equity proceeds from the non-controlling interest   -   8,346   -   8,346
Payments of deferred financing costs   -   (4,673)   (319)   (9,566)
Payments for stock issuance costs associated with the Rights Offering -   (4,969)   (285)   (4,969)
Payments of fees associated with the Recapitalization   -   (1,885)   (9)   (1,885)
Repayment of debt   (8,095)   (131,000)   (33,634)   (135,000)
Distributions on non-controlling preferred interest   -   -   -   (1,230)
Distributions on non-controlling common interest   -   -   -   (1,553)
Distributions on Common Shares   -   -   -   (6,540)
  Net cash (used in) provided by financing activities   (8,095)   20,819   (34,247)   2,603
Net (decrease) increase in cash   (223)   21,820   (2,069)   9,016
                             
Cash and cash equivalents - beginning of period   22,690   2,716   24,536   15,520
Cash and cash equivalents - end of period    $                     22,467    $                      24,536    $                     22,467    $                      24,536
                             
Supplemental disclosure of cash flow information:                
Cash paid during the period for interest    $                       1,320    $                        2,750    $                       6,045    $                      16,540
Cash paid during the period for income taxes    $                            30    $                           259   84   259
                             





SOURCE Primary Energy Recycling Corporation