Ormat Technologies, Inc. · NYSE:ORA
Ormat Technologies — Q3 2016 Earnings Presentation
25 slides from Ormat Technologies's earnings presentation, Nov 8, 2016
Slide 1: Ormat Technologies, Inc. Third Quarter 2016 Earnings Call
Ormat Technologies, Inc. Third Quarter 2016 Earnings Call November 8, 2016 Green energy you can rely on Copyright © 2016 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 • Third Quarter 2016 prepared remarks • Q3 2016 highlights: Isaac Angel, CEO • Financial overview: Doron Blachar, CFO • Operations & business updates: Isaac Angel, CEO • Q&A 3 Copyright © 2016 Ormat Technologies, Inc.
Slide 4: Q3 2016 Highlights
Q3 2016 Highlights(1) Q3 2016 Q3 2015 Change Revenues Electricity 109.8 97.2 12.9% Product 74.8 65.6 14.0% Total Revenues 184.6 162.9 13.4% Gross margin 74.5 59.3 25.6% Operating income 48.2 46.5 3.7% Operating income, As Adjusted (2) 59.2 46.5 27.4% Adjusted EBITDA(3) 85.4 79.0 8.1% GAAP EPS 0.24 1
Slide 5: Financial Results
Financial Results Doron Blachar, CFO Green energy you can rely on 5 Copyright © 2016 Ormat Technologies, Inc.
Slide 6: Total Revenues
Total Revenues Total Revenues Total Cost of Revenues Segment Contribution +21.8 million (13.4%) +6.6 million (6.4%) 184.6 162.9 40% 103.5 110.1 60% Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2016 and Q3 2015 Electricity Segment Product Segment All amounts in million USD 6 Copyright © 2016 Ormat Technologies
Slide 7: Electricity Segment
Electricity Segment Revenues Cost of Revenues +$12.6 million (12.9%) +$5.0 million (8.1%) $109.8 $97.2 $66.5 $61.5 Q3 2015 Q3 2016 Q3 2015 Q3 2016 • Commencement of the second phase of Don A. Campbell • Additional cost of revenues from the second phase and plant 4 in Olkaria III of Don A. Campbell a
Slide 8: Product Segment
Product Segment Revenues Cost of Revenues +$9.2 million (14.0%) +$1.6 million (3.9%) $74.8 $65.6 $42.0 $43.6 Q3 2015 Q3 2016 Q3 2015 Q3 2016 • Increase of approximately $7 million in revenue • This increase was primarily attributable to the recognition from our new projects in Turkey increase in Pro
Slide 9: Gross Margin
Gross Margin Combined Electricity Segment Product Segment 40.3% 41.7% 39.4% 36.4% 36.8% 36.0% Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 2016 9 Copyright © 2016 Ormat Technologies, Inc.
Slide 10: Operating Income
Operating Income Total Electricity Segment Product Segment +$1.7million (3.8%) - $4.4 million (15.7%) +$6.2 million (34.1%) As adjusted +$12.7million (27.4%) As adjusted +$6.6 million (23.1%) $59.2 $46.5 $48.2 $34.9 $28.3 $24.3 $23.9 $18.1 Q3 2015 Q3 2016 Q3 2016, Q3 2015 Q3 2016 Q3 2016, Q3 2015 Q3
Slide 11: Net Income Attributable to the Company's Stockholders & EPS
Net Income Attributable to the Company's Stockholders & EPS1 Net Income Attributable to the Earnings per Share (Diluted) Company's Stockholders -$60.1 million (83.2%) As adjusted +$4.6 million (19.8%) $1.41 $72.1 $0.56 $28.1 $0.46 $23.4 $12.1 $0.24 Q3 2015 Q3 2015 Q3 2016 Q3 2016 Q3 2015 Q3 2015 Q3
Slide 12: Adjusted EBITDA
Adjusted EBITDA1 Total2 Electricity Segment2 Product Segment +$6.4 million (8.1%) +$0.8 million (1.4 %) +$5.6 million (27.7%) 85.4 79.0 58.8 59.6 25.8 20.2 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3-15 Q3-16 Q3-15 Q3-16 Q3-15 Q3-16 D&A3 25.4 25.1 D&A3 24.5 24.3 D&A3 0.9 0.8 1. All amounts in
Slide 13: Cash and Cash Equivalents
Cash and Cash Equivalents 203.5 249.5 158.0 108.0 $185.9 5.9 41.0 22.5 18.1 17.3 6.8 $90.1 December 31, Other Cash from Bonds Bonds Capital Debt Cash dividend Guadeloupe Cash paid to Purchase of September 30, 2015 operating proceeds prepayment expenditures Repayment acquisition non-controlling OFC b
Slide 14: Payment of Principal Due by Period
Payment of Principal Due by Period The average interest rate for the total debt is 5.3% Q4-2016 Year 2016 Long-term non-recourse debt & limited recourse debt 5,374 5,374 Senior Secured Notes (non-recourse) 11,656 11,656 Long-term loans (full recourse) 4,214 4,214 Total $21,244 $21,244 Remaining Tota
Slide 15: New Financing Update
New Financing Update • New Bonds issuance (Series 2 & 3) - $204 million • Series 2: $67 million will mature in September 2020 and bear interest at a fixed rate of 3.7% per annum • Series 3: $137 million will mature in September 2022 and bear interest at a fixed rate of 4.45% per annum • Series 2 & 3
Slide 16: Operations & Business Updates
Operations & Business Updates Isaac Angel, CEO Green energy you can rely on 16 Copyright © 2016 Ormat Technologies, Inc.
Slide 17: Organic Growth
Organic Growth • Generation increased by 10.8% QoQ due to commencement of commercial operation of: • The second phase of Don A. Campbell power plant in Nevada in September 2015 • Plant 4 at the Olkaria III complex in Kenya in January 2016 • Consolidation of the acquired Bouillante power plants in Gu
Slide 18: Organic Growth and M&A
Organic Growth and M&A • Expanding geographical footprint and diversifying technologies • Added 10 MW in July 2016 - Bouillante, Guadeloupe • Increased the output of this power plant to 13MW • Added 29 MW in January 2016 - Olkaria III, Plant 4, Kenya • Expect to add between 150MW and 180MW by YE 201
Slide 19: Support for New Geothermal Development
Support for New Geothermal Development • City of Los Angeles is setting a course for 100% renewable energy • DOE issues RFI for new 100-250 MW geothermal power plants in California • BLM held geothermal competitive lease sale • Ormat acquired seven new leased in Nevada and Utah in additional to five
Slide 20: CapEx for the Remainder of 2016
CapEx for the Remainder of 2016 CapEx ($ millions) 57 Construction & enhancements 10 Development & Exploration 10 Maintenance CapEx $77 Total CapEx $21 Debt repayment $98 Total 20 Copyright © 2016 Ormat Technologies, Inc.
Slide 21: Product Segment
Product Segment • Backlog of $204 million as of Nov. 7, 2016 • Including revenues for the period between Oct. 1 and Nov.7,2016 • Finalizing contracts with an aggregated amount of approximately $100 million dollars, for which we already received down payments and set delivery dates • Demonstrating ou
Slide 22: 2016 Guidance Update
2016 Guidance Update • We are increasing our 2016 full-year revenue guidance: • 2016 revenues guidance to be between $637 and $647 million • Electricity Segment - between $422 and $427 million • Product Segment - between $215 and $220 million • We are increasing our adjusted EBITDA guidance: • Adjus
Slide 23: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA 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 ass
Slide 24: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA 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 ass
Slide 25: Reconciliation of EPS
Reconciliation of EPS Three Months Ended September 30 2016 2015 (in thousands) Net income attributable to the Company's stockholders.............................................................................................................................................................. $ 12,080