Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q3 2013 Earnings Presentation
27 slides from Ormat Technologies's earnings presentation, Nov 6, 2013
Slide 1: Third Quarter 2013 Earnings Call
Ormat Technologies, Inc. Third Quarter 2013 Earnings Call November 6, 2013 Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 2: Disclaimer
Disclaimer Information provided during this presentation 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 sta
Slide 3: Agenda
Agenda • 2013 Third Quarter Prepared Remarks • Quarter Highlights: Dita Bronicki, CEO • Financial Overview: Doron Blachar, CFO • Operations Update: Yoram Bronicki, President and COO • Closing Remarks: Dita Bronicki, CEO • Q&A 3 Copyright © 2013 Ormat Technologies, Inc.
Slide 4: Highlights: Financial highlights
Highlights Financial highlights • Electricity revenue increased by 14.7% to $89.0 million; • Gross margin grew 75 basis points to 30.4%; • Operating income reached $29.8 million compared to $12.1 million; • Net income attributable to the Company's shareholders was $13.0 million or $0.28 per share (d
Slide 5: Highlights: Operational highlights and recent developments
Highlights Operational highlights and recent developments: • Increased electricity generation by 5.0% to 985,531 MWh, driven by new capacity coming on line at Olkaria III Plant 2 in Kenya, and increased generation at the McGuiness Hills plant; • Successfully completed the world's largest binary geot
Slide 6: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 6 Copyright © 2013 Ormat Technologies, Inc.
Slide 7: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution -1.5 million (1.2%) -11.1 million (10.9%) 32% 132.3 130.7 41% 102.1 59% 68% 91.0 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Electricity Segment Product Segment All amounts in million USD 7 Copyright © 2013 Ormat Technolog
Slide 8: Electricity Segment
Electricity Segment Revenues Cost of Revenues +11.4 million (14.7%) +1.4 million (2.4%) 1 2 $89.0 3.3 3.4 6.4 $77.6 1.7 59.9 61.4 Q3 2012 Derivatives Improved Contribution Reduced Q3 2013 Q3 2012 Q3 2013 contracts generation & of Olkaria III generation & Energy rates Plant 2 Energy rates in Amatitla
Slide 9: Product Segment
Product Segment Revenues Cost of Revenues -12.9 million (23.6%) -12.5 million (29.7.%) 54.7 41.8 42.1 29.6 Q3 2012 Q3 2013 Q3 2012 Q3 2013 All amounts in million USD 9 Copyright © 2013 Ormat Technologies, Inc.
Slide 10: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 30.4% 31.1% 29.0% 22.9% 22.8% 23.0% Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 10 Copyright © 2013 Ormat Technologies, Inc.
Slide 11: Operating Income
Operating Income Total Electricity Segment Product Segment 29.8 20.7 12.1 9.1 7.4 4.7 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 The increase was principally attributable to: • Increase in Electricity segment gross margin • $7.3 million impairment charge recorded in Q3 2012 All amounts in milli
Slide 12: Interest Expense, Net
Interest Expense, Net Interest Expense, Net +3.1 million (19.9%) Gross Interest Expense Capitalized Interest 20.3 18.5 17.9 15.4 2.5 1.8 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Increase was primarily due to • $1.9 million increase in interest related to sale of tax benefit • $0.7 million dec
Slide 13: Net Income Attributable to the Company's Stockholders & EPS
Net Income Attributable to the Company's Stockholders & EPS Net Income Attributable to the Earnings per Share Company's Stockholders (Diluted) $13.0 $13.3 $0.28 $0.29 $3.1 $0.07 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2012 2013 2012 2013 2012 2013 2012 2013 ($0.6) ($0.01) Excluding item (A) Excluding item (A) • The
Slide 14: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment 175.7 150.5 134.2 125.2 +12.0 M (24.9%) +25.2 M (16.8%) +8.5 M (21.1%) +9.0 M (7.1%) +3.5 M (44.9%) +16.3 M (64.4%) 60.3 48.2 48.9 40.4 41.5 25.2 7.8 11.4 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2
Slide 15: Cash, Cash Equivalents and Short-Term Bank Deposit
Cash, Cash Equivalents and Short-Term Bank Deposit 49.7 45.0 144.6 31.4 32.2 $69.6 14.7 37.5 7.7 10.2 11.9 7.7 3.0 $35.4 Dec. 31 2012Net proceeds Cash grant Cash from Net proceedsNet proceedsNet proceeds Capital Repayment Cash paid to Repurchase Net change Other September from sale of from the U.S.
Slide 16: Payment of Principal Due by Period
Payment of Principal Due by Period The annual average interest rate for the total debt is 6.0% (As of September 30, 2013, Amounts in thousands) Q4-2013 Year 2013 Long-term non-recourse debt & limited recourse debt 4,544 4,544 Senior Secured Notes (non-recourse) due 2020 15,396 15,396 Long-term loans
Slide 17: Operations Update
Operations Update Yoram Bronicki, President and COO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 18: Total Generation (GWh)
Total Generation(GWh) Annual Quarterly & Nine Months 3,682 3,943 3,560 3,110 2,876 3,092 2,712 938 986 2008 2009 2010 2011 2012 Q3 2012 Q3 2013 9M 2012 9M 2013 18 Copyright © 2013 Ormat Technologies, Inc.
Slide 19: Projects under Construction
Projects under Construction Fully Released for Construction Projected Power May Qualify Projected # Project Location Generating Purchase for ITC Cash Completion Capacity (MW) Agreement Grant 10 1 Heber Solar California By YE-2013(1) (24,500 MWh /year) Don A. Campbell 2 Nevada 16 By YE-2013 (
Slide 20: Future Projects
Future Projects Projects under Various Stages of Development Projected Power Purchase # Project Location Generating Capacity (MW) Agreement 1 Crump Geyser (1) Oregon 10 - 2 Platanares(2) Honduras 35 3 Sarulla(3) Indonesia 42 4 McGinness Hills - Phase 2 Nevada 30 - 5 Wister(4) California 30 Tot
Slide 21: Future Projects - Exploration Prospects
Future Projects -Exploration Prospects • Ormat's growth beyond 2013 will depend on the success in its exploration efforts • Strong land position to support future growth Status of 39 Prospects Prospects: U.S. - 29; ROW - 10 19 U.S., 29 Guatemala, 2 Indonesia, 1 OR, 9 Chile,6 7 7 6 NV, 11 NZ, 1 UT, 2
Slide 22: Product Segment
Product Segment • Strong performance of the product segment • Approximately $173 million backlog as of November 5, 2013 • The backlog includes: • Revenue for the period between October 1 and November 5, 2013 • $21.4 million revenues from the Thermo 1 order expected to be partially recognized this ye
Slide 23: Business Overview
Business Overview Dita Bronicki, CEO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 24: Capital Needs & Sources for the Remainder of 2013
Capital Needs & Sources for the Remainder of 2013 As of the end of September 30, 2013 Capital Needs ($ millions) Sources of Capital ($ millions) 36 Construction of new projects & 35.4 Cash, cash equivalents and a short-term enhancements1 bank deposit 3 Development of new projects 145.2 Unused corpor
Slide 25: Revenue Guidance for 2013
Revenue Guidance for 2013 Expect total revenues between $525 and $535 million • Electricity Segment - approximately $330 million • Product Segment - between $195 million and $205 million 25 Copyright © 2013 Ormat Technologies, Inc.
Slide 26: Reconciliation of Adjusted EBITDA and Additional Cash Flows Information
Reconciliation of Adjusted EBITDA and Additional Cash Flows Information Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information For the Nine and Three-Month Periods Ended September 30, 2013 and 2012 (Unaudited) We calculate EBITDA as net income before interest, taxes, depreci
Slide 27: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA 27 Copyright © 2013 Ormat Technologies, Inc.