• Ormat Technologies Reports Fourth Quarter and Year-End 2020 Financial Results

    ソース: Nasdaq GlobeNewswire / 24 2 2021 16:30:00   America/New_York

    NET INCOME ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS FOR THE FOURTH QUARTER INCREASED 64.2% YEAR OVER YEAR

    COMPANY INCREASES ITS QUARTERLY DIVIDEND BY 9% TO $0.12 PER SHARE

    RENO, Nev., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the fourth quarter and full year ended December 31, 2020.

    KEY FINANCIAL RESULTS

    (Dollars in millions, except per share)Q4 2020Q4 2019Change (%)FY 2020FY 2019Change (%)
    GAAP Measures      
    Revenues      
    Electricity146.2 144.4 1.3%541.4 540.3 0.2%
    Product27.4 43.8 (37.5)%148.1 191.0 (22.5)%
    Energy Storage5.8 4.3 36.2%15.8 14.7 7.6%
    Total Revenues179.4 192.4 (6.8)%705.3 746.0 (5.5)%
                 
    Gross margin (%)            
    Electricity45.2%43.6%+160 bps 44.6%42.1%+250 bps 
    Product29.8%28.2%+160 bps 22.4%23.6%-120 bps 
    Energy Storage13.0%(19.0)%  11.1%(21.8)%  
    Gross margin (%)41.8%38.7%+310 bps 39.2%36.1%+310 bps 
            
    Operating income53.2 54.5 -2.3%214.0 193.8 10.4%
    Net income attributable to the Company’s stockholders20.7 12.6 64.2%85.5 88.1 -3.0%
    Diluted EPS ($)0.39 0.24 62.5%1.65 1.72 (4.1)%
               
    Non-GAAP Measures 1          
    Adjusted Net income attributable to the Company’s stockholders20.7 12.6 64.2%85.5 74.8 14.3%
    Adjusted Diluted EPS ($)0.39 0.24 62.5%1.65 1.46 13.0%
    Adjusted EBITDA1 109.2 102.2 6.9%420.2 384.3 9.3%
                 

    “This was a solid end to a strong year for Ormat, despite unprecedented global challenges,” commented Doron Blachar, Chief Executive Officer. “For the year, we met our Adjusted EBITDA guidance, supported by improved gross margin within our electricity and storage segments. Of a particular note, our energy storage segment is growing and is now profitable. We also strengthened our balance sheet through a combination of long-term debt and an equity offering. Finally, in the fourth quarter, we restarted operations at Puna and successfully resolved all pending Kenya tax assessments.”

    “Most importantly, this year we laid the foundation to accelerate the growth of our electricity and storage segments,” added Blachar. “With the tail wind of governments’ support around the world for renewable energy, we are increasing our capital expenditures for 2021 as we are confident with our solid growth plans aiming to increase our combined geothermal, energy storage and solar generating portfolio to approximately 1.5 GW by 2023 with a significant contribution coming from our energy storage business. We are targeting to reach an annual run-rate of $500 million in Adjusted EBITDA towards the end of 2022 that we expect to continue to grow as we move forward with our plans in 2023 and onwards.”

    FINANCIAL AND RECENT BUSINESS HIGHLIGHTS

    • Net income attributable to the Company's stockholders was $85.5 million, or $1.65 per diluted share, compared to $88.1 million, or $1.72 per diluted share in 2019, representing a decrease of 3% and 4.1%, respectively, mainly impacted by a non-recurring tax benefit recorded in 2019. Excluding this tax benefit, Net income attributable to the Company's stockholders and diluted share in 2020 over 2019 increased by 14.3% and 13%, respectively;
    • Adjusted EBITDA increased 9.3% to $420.2 million, up from $384.3 million in 2019;
    • Electricity segment revenues slightly increased compared to 2019, supported by a contribution from newly added capacity at our Steamboat Complex and partially offset by curtailments in the Olkaria power plant in Kenya due to COVID-19;
    • Product segment backlog stand at $33 million as of February 24, 2021;
    • During the fourth quarter the Puna Geothermal Power Plant resumed operation and partial generation, two and a half years after the eruption of the Kilauea Volcano disrupted operations. The Company continues the field development work and expects to increase the current 13 MW capacity to full operation by mid-2021;
    • In Kenya, the Company concluded an audit related to the three tax assessments totaling approximately to the $200 million issued by the Kenya Revenue Authority (KRA) in 2019 and reached a favorable settlement during the fourth quarter;
    • We completed a public offering of 4,772,500 shares resulting in net proceeds to the Company of approximately $340 million;
    • Completed the acquisition of a shovel-ready energy storage asset in Upton County, Texas. This acquisition follows the acquisition we announced in July of the operating Pomona energy storage facility in California that increased our energy storage portfolio to 73 MW; and
    • We plan to provide further details on our long-term growth plans and targets at an Analyst Day to be conducted in May 2021.

    _______________
    1 Reconciliation is set forth below in this release

    FOURTH QUARTER 2020 FINANCIAL RESULTS (COMPARING THE QUARTER ENDED DECEMBER 31, 2020 TO THE QUARTER ENDED DECEMBER 31, 2019)

    Total revenues for the quarter were $179.4 million, down 6.8% compared to the same quarter last year. Electricity segment revenues increased 1.3% to $146.2 million, up from $144.4 million last year. The increase was mainly attributable to Steamboat Hills enhancement and repowering plant in Ormesa offset by curtailments in Olkaria. Product segment revenues decreased 37.5% to $27.4 million, down from $43.8 million in the same quarter last year due to lower backlog impacted mainly by COVID-19. Energy Storage segment revenues were $5.8 million compared to $4.3 million in the same quarter last year. The increase was mainly driven by the addition of the Rabbit Hill project in Texas and the acquired Pomona asset in California.

    Net income attributable to the Company’s shareholders was $20.7 million, or $0.39 per diluted share, compared to $12.6 million, or $0.24 per diluted share, an increase of 64.2%.

    Adjusted EBITDA was $109.2 million in the fourth quarter of 2020 compared to $102.2 million in the fourth quarter of 2019. The increase in Adjusted EBITDA is mainly related to the improved performance of our Electricity segment. A reconciliation of GAAP net income to EBITDA and Adjusted EBITDA is set forth below in this release.

    FULL-YEAR 2020 FINANCIAL RESULTS (COMPARING THE YEAR ENDED DECEMBER 31, 2020 TO THE YEAR ENDED DECEMBER 31, 2019)

    For the year ended December 31, 2020, total revenues were $705.3 million, down 5.5% from $746.0 million for the year ended December 31, 2019. Electricity segment revenues increased 0.2% to $541.4 million for the year ended December 31, 2020, up from $540.3 million for 2019. Product segment revenues decreased 22.5% to $148.1 million for the year, down from $191.0 million last year. Energy Storage segment revenues were $15.8 million for the year ended December 31, 2020 compared to $14.7 million in 2019.

    Net income attributable to the Company’s stockholders was $85.5 million, or $1.65 per diluted share, compared to $88.1 million, or $1.72 per diluted share, for the same period a year ago.

    Adjusted EBITDA for the year ended December 31, 2020 was $420.2 million compared to $384.3 million for 2019, an increase of 9.3%. A reconciliation of GAAP Net income to EBITDA and Adjusted EBITDA is set forth below in this release.

    2021 GUIDANCE

    • Total revenues of between $640 million and $675 million
    • Electricity segment revenues between $570 million and $580 million
      • The electricity segment guidance includes $33 million from the Puna power plant in Hawaii, assuming we will meet our plans to bring it close to full operation in mid-2021.
    • Product segment revenues of between $50 million and $70 million
    • Energy Storage revenues of between $20 million and $25 million
    • Adjusted EBITDA to be between $400 million and $410 million
      • Adjusted EBITDA attributable to minority interest of approximately $32 million.

    The Company provides a reconciliation of Adjusted EBITDA, a Non-GAAP financial measure for the three months and year ended December 31, 2020. 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 tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

    DIVIDEND

    On February 24, 2021, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on March 29, 2021 to stockholders of record as of the close of business on March 11, 2021. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

    CONFERENCE CALL DETAILS

    Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, February 25th, 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 60 minutes after the conclusion of the live call.

    Investors may access the call by dialing:

    Participant dial in (toll free): 1-877-511-6790
    Participant international dial-in: 1-412-902-4141
       
    Conference replay
    		  
    US Toll Free: 1-877-344-7529
    International Toll: 1-412-317-0088
    Replay Access Code: 10151868
       

    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 robust plan to accelerate long-term growth in the energy segment market to establish leading position in the U.S. energy storage market. 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. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company activity into the energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current 932 MW of geothermal and Solar generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and its 73 MW energy storage portfolio is located in the U.S.

    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’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 2, 2020 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

    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.

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Statement of Operations
    For the Three and Twelve-Month Periods Ended December 31, 2020 and 2019

     Three Months Ended December 31,Twelve-Months Ended December 31,
     2020201920202019
     (Dollars in thousands, except per share data)
    Revenues:    
    Electricity146,192 144,368 541,393 540,333 
    Product27,388 43,814 148,125 191,009 
    Energy storage5,802 4,260 15,824 14,702 
    Total revenues179,382 192,442 705,342 746,044 
    Cost of revenues:    
    Electricity80,071 81,393 300,059 312,835 
    Product19,224 31,479 114,948 145,974 
    Energy storage5,046 5,068 14,060 17,912 
    Total cost of revenues104,341 117,940 429,067 476,721 
    Gross profit75,041 74,502 276,275 269,323 
    Operating expenses:    
    Research and development expenses1,114 1,875 5,395 4,647 
    Selling and marketing expenses3,660 4,123 17,384 15,047 
    General and administrative expenses17,072 14,032 60,226 55,833 
    Business interruption insurance income— — (20,743)— 
    Operating income53,195 54,472 214,013 193,796 
    Other income (expense):    
    Interest income248 320 1,717 1,515 
    Interest expense, net(19,139)(17,568)(77,953)(80,384)
    Derivatives and foreign currency transaction gains (losses)1,691 (72)3,802 624 
    Income attributable to sale of tax benefits8,902 4,415 25,720 20,872 
    Other non-operating income (expense), net75 (482)1,418 880 
    Income from operations before income tax and equity in earnings (losses) of investees44,972 41,085 168,717 137,303 
    Income tax provision(21,728)(25,477)(67,003)(45,613)
    Equity in earnings (losses) of investees, net288 (1,481)92 1,853 
    Net income23,532 14,127 101,806 93,543 
    Net income attributable to noncontrolling interest(2,834)(1,521)(16,350)(5,448)
    Net income attributable to the Company's stockholders20,698 12,606 85,456 88,095 
    Earnings per share attributable to the Company's stockholders:    
    Basic:    
    Net income0.39 0.25 1.66 1.73 
    Diluted:    
    Net income0.39 0.24 1.65 1.72 
    Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:    
    Basic53,106 51,017 51,567 50,867 
    Diluted53,551 51,511 51,937 51,227 
             

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Condensed Consolidated Balance Sheet
    For the Periods Ended December 31, 2020 and December 31, 2019

     December 31,
    2020    		 December 31,
    2019
     (Dollars in thousands)
    ASSETS
    Current assets:   
    Cash and cash equivalents448,252  71,173 
    Restricted cash and cash equivalents88,526  81,937 
    Receivables:   
    Trade149,170  154,525 
    Other17,987  22,048 
    Inventories35,321  34,949 
    Costs and estimated earnings in excess of billings on uncompleted contracts24,544  38,365 
    Prepaid expenses and other15,354  12,667 
    Total current assets779,154  415,664 
    Investment in unconsolidated companies98,217  81,140 
    Deposits and other66,989  38,284 
    Deferred income taxes119,299  129,510 
    Property, plant and equipment, net2,099,046  1,971,415 
    Construction-in-process479,315  376,555 
    Operating leases right of use16,347  17,405 
    Finance leases right of use11,633  14,161 
    Intangible assets, net194,421  186,220 
    Goodwill24,566  20,140 
    Total assets3,888,987  3,250,494 
        
    LIABILITIES AND EQUITY
    Current liabilities:   
    Accounts payable and accrued expenses152,763  141,857 
    Short term revolving credit lines with banks (full recourse)—  40,550 
    Commercial paper—  50,000 
    Billings in excess of costs and estimated earnings on uncompleted contracts11,179  2,755 
    Current portion of long-term debt:   
    Senior secured notes24,949  24,473 
    Other loans35,897  34,458 
    Full recourse17,768  76,572 
    Operating lease liabilities2,922  2,743 
    Finance lease liabilities3,169  3,068 
    Total current liabilities248,647  376,476 
    Long-term debt, net of current portion:   
    Limited and non-recourse:   
    Senior secured notes315,195  339,336 
    Other loans284,928  317,395 
    Senior unsecured bonds717,534  286,453 
    Other loans59,556  68,747 
    Operating lease liabilities12,897  14,008 
    Finance lease liabilities9,104  11,209 
    Liability associated with sale of tax benefits111,476  123,468 
    Deferred income taxes87,972  97,126 
    Liability for unrecognized tax benefits1,970  14,643 
    Liabilities for severance pay18,749  18,751 
    Asset retirement obligation63,457  50,183 
    Other long-term liabilities6,235  8,039 
    Total liabilities1,937,720  1,725,834 
        
        
    Redeemable noncontrolling interest9,830  9,250 
        
    Equity:   
    The Company's stockholders' equity:   
    Common stock56  51 
    Additional paid-in capital1,262,446  913,150 
    Retained earnings550,103  487,873 
    Accumulated other comprehensive income (loss)(6,620) (8,654)
    Total stockholders' equity attributable to Company's stockholders1,805,985  1,392,420 
    Noncontrolling interest135,452  122,990 
    Total equity1,941,437  1,515,410 
    Total liabilities, redeemable noncontrolling interest and equity3,888,987  3,250,494 
          

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of EBITDA and Adjusted EBITDA
    For the Three and Twelve-Month Periods Ended December 31, 2020 and 2019

    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 or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, 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 U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. 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 Twelve-Month periods ended December 31, 2020 and 2019.

     Three Months Ended December 31,Twelve-Months Ended December 31,
     2020201920202019
     (Dollars in thousands)(Dollars in thousands)
    Net income23,532 14,127 101,806 93,543 
    Adjusted for:    
    Interest expense, net (including amortization of deferred financing costs)18,891 17,248 76,236 78,869 
    Income tax provision (benefit)21,728 25,477 67,003 45,613 
    Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla1,278 5,205 11,549 13,089 
    Depreciation and amortization39,643 36,260 151,371 143,242 
    EBITDA105,072 98,317 407,965 374,356 
    Mark-to-market gains or losses from accounting for derivative420 507 (1,192)(1,402)
    Stock-based compensation2,770 2,127 9,830 9,358 
    Loss from extinguishment of liability— 468 — 468 
    Merger and acquisition transaction costs910 733 2,279 1,483 
    Settlement expenses— — 1,277 — 
    Adjusted EBITDA109,172 102,152 420,159 384,263 
             

    ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
    Reconciliation of Adjusted Net Income and Adjusted EPS
    For the Three and Twelve-Month Periods Ended December 31, 2020 and 2019

    Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

    The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three-month and 12-month periods ended December 31, 2020 and 2019.

      Three Months Ended December 31 Twelve Months Ended December 31
      20202019 2020 2019
      (Dollars in millions, except per share)
             
    Net income attributable to the Company's stockholders ($ million) 20.712.6 $85.5 88.1 
    One-time tax items ($ million) ——  — (13.3)
    Adjusted Net income attributable to the Company's stockholders ($ million) 20.712.6 $85.5 74.8 
    Weighted average number of shares diluted used in computation of earnings per share attributable to the Company's stockholders (million) 53.651.5  51.9 51.2 
    Diluted Adjusted EPS ($) 0.390.24  1.65 1.46 
             


    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
    FNK IR
    646-415-8972
    rob@FNKIR.com
      

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