Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q2 2013 Earnings Presentation
25 slides from Ormat Technologies's earnings presentation, Aug 7, 2013
Slide 1: Second Quarter 2013 Earnings Call
Ormat Technologies, Inc. Second Quarter 2013 Earnings Call August 7, 2013 Olkaria III Geothermal Complex, Kenya Multi-Phase Development to over 100 MW by 2014 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 Second 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
Highlights Financial highlights • Total revenues grew 20.5% to a record of $152.7 million • Product revenue grew 44.9% to $65.0 million; Electricity revenue grew 7.1% to 87.7 million • Operating income grew 55.3% to $37.9 million • Net income attributable to the Company's stockholders amounted to $2
Slide 5: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 5 Copyright © 2013 Ormat Technologies, Inc.
Slide 6: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution +26.0 million (20.5%) +13.9 million (15.7 %) 152.7 126.7 35% 43% 102.3 65% 57% 88.4 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Electricity Segment Product Segment All amounts in million USD 6 Copyright © 2013 Ormat Techno
Slide 7: Electricity Segment
Electricity Segment Revenues Cost of Revenues +5.8 million (7.1%) +2.1 million (3.7%) 11.3 5.5 $87.7 $81.9 56.6 58.6 Q2 2012 Contribution of Reduction in Q2 2013 Q2 2012 Q2 2013 Olkaria III & generation & McGinness Hills Energy rates* • Average revenue rate was $82 per MWh in Q2 2013 • Additional co
Slide 8: Product Segment
Product Segment Revenues Cost of Revenues +20.1 million (44.9%) +11.8 million (37.2%) 65.0 44.8 43.7 31.8 Q2 2012 Q2 2013 Q2 2012 Q2 2013 All amounts in million USD 8 Copyright © 2013 Ormat Technologies, Inc.
Slide 9: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 33.0% 33.1% 30.2% 30.9% 32.8% 29.0% Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 9 Copyright © 2013 Ormat Technologies, Inc.
Slide 10: Operating Income
Operating Income Total Electricity Segment Product Segment 37.9 24.4 22.6 16.6 15.2 7.8 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 The increase was principally due to increase in our gross margin in both our electricity and product segments All amounts in million USD 10 Copyright © 2013 Ormat T
Slide 11: Interest Expense, Net
Interest Expense, Net Interest Expense, Net +3.2 million (22.7%) Gross Interest Expense Capitalized Interest 17.9 19.2 17.5 14.3 3.7 1.7 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Increase was primarily due to • $1.3 million increase in interest related to sale of tax benefit • $2.0 million in
Slide 12: Interest Expense
Interest Expense • Completed the conversion of the debt facility with OPIC from a floating interest rate to a fixed interest rate • The conversion applies to both tranches of the facility, which is being used to finance the Olkaria III complex in Naivasha, Kenya • The average fixed interest rate for
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 Company's Stockholders Earnings per Share $25.2 $18.0 $0.55 $0.40 $8.6 $4.8 $0.19 $0.11 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Excluding items Excluding items (A) and (B)* (A) and (B)*
Slide 14: Adjusted EBITDA
Adjusted EBITDA Total Electricity Segment Product Segment 115.5 102.3 84.9 85.3 69.7 50.8 51.4 43.8 30.2 18.3 17.4 7.0 Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Q2-12 Q2-13 H1-12 H1-13 Q2-12 Q2-13 H1-12 H1-13 Q2-12 Q2-13 H1-12 H1-13 D&A 25.0 22.7
Slide 15: Cash, Cash Equivalents and Short-Term Bank Deposit
Cash, Cash Equivalents and Short-Term Bank Deposit 45.0 102.0 31.5 20.0 $69.6 7.7 6.6 18.8 11.9 9.0 6.8 $31.9 38.7 31.9 Dec. 31 2012 Net proceeds Net proceeds Cash from Net proceeds Net proceeds Capital Repayment of of Repurchase Net change in Cash paid to the June 30,2013 from borrowers from sale o
Slide 16: Payment of Principal Due by Period
Payment of Principal Due by Period Q3-2013 Q4-2013 Year 2013 Long-term non-recourse debt & limited recourse debt 4,527 4,544 9,071 Senior Secured Notes (non-recourse) due 2020 10,719 15,396 26,115 Long-term loans (full recourse) 3,404 10,948 14,352 Total $18,650 $30,888 $49,538 Remaining Total 2013
Slide 17: Operations Update
Operations Update Yoram Bronicki, President and COO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 18: Projects under Construction
Projects under Construction Fully Released for Construction Power May Qualify Projected Generating Projected # Project Location Purchase for ITC Cash Capacity (MW) Completion Agreement Grant 10 1 Heber Solar California Q4 2013/Q1 2014 (24,500 MWh /year) 2 Wild Rose Nevada 16 By the end of 2013
Slide 19: 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 Wister(4) California 30 Total 117 MW (1) Ormat has signed a 50:50 J
Slide 20: 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 41 Prospects Prospects: U.S. - 32; ROW - 9 Less than $1 million $3 million OR, 9 20 ID, 1 NV, 13 CA, 2 UT, 2 NM, 1 Guatem
Slide 21: Product Segment
Product Segment • Strong performance of the product segment • Approximately $170 million backlog as of August 6, 2013 • The backlog includes: • Revenue for the period between July 1 and August 6, 2013 • $21.4 million revenues from the Thermo 1 order expected to be partially recognized this year and
Slide 22: Business Overview
Business Overview Dita Bronicki, CEO Green energy you can rely on Copyright © 2013 Ormat Technologies, Inc.
Slide 23: Capital Needs & Sources for the Remainder of 2013
Capital Needs & Sources for the Remainder of 2013 As of the end of June 30, 2013 Capital Needs ($ millions) Sources of Capital ($ millions) 67 Construction of new projects & 32 Cash, cash equivalents and a short-term enhancements1 bank deposit 8 Development of new projects 181 Unused corporate lines
Slide 24: Revenue Guidance for 2013
Revenue Guidance for 2013 Total revenues: between $510 and $530 million Electricity Segment Guidance Product Segment Guidance $335-$345 $11 $325-$335 $180-190 $5 $185-$195 May Guidance Update - August update May Guidance Update - accelerated August update Momotombo rev. recognition sale 24 Copyright
Slide 25: Reconciliation of Adjusted EBITDA and Additional Cash Flows Information
Reconciliation of Adjusted EBITDA and Additional Cash Flows Information 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, excluding impairment of long-lived assets