VANCOUVER,
May 29, 2014 /CNW/ - Run of River
Power Inc. ("ROR" or the "Company") (TSX-V:ROR)
announces its financial and operating results for the quarter ended
March 31, 2014. The unaudited
condensed consolidated interim financial statements and management
discussion and analysis for the quarter ended March 31, 2014 have been filed on SEDAR and
posted on ROR's website (www.runofriverpower.com). All figures
reported herein are in Canadian dollars unless otherwise
stated.
Financial Highlights
For the period ended March 31, 2014, the Company incurred a net
comprehensive loss of $1,002,881,
and, as at that date, has an accumulated deficit of $35,216,445 and a working capital deficit of
$19,068,607. To date, the
Company has financed its operations primarily through debt and
equity issuances and through the disposition of projects.
Selected Financial Information(1)
|
|
|
|
|
($000's except per share and generation
amounts) |
|
Q1 2014 |
|
Q1 2013 |
Electricity sales |
|
88 |
|
125 |
EBITDA |
|
(422) |
|
(391) |
Loss |
|
(1,003) |
|
(973) |
Basic and diluted loss per share |
|
(0.01) |
|
(0.01) |
Cash flow from (used in) operations |
|
135 |
|
(595) |
Total assets |
|
22,967 |
|
25,751 |
Long-term debt (reclassified to held for sale
disposal group March 2014) |
|
9,297 |
|
13,210 |
Generation-MWh |
|
1,367 |
|
2,080 |
(1)Selected financial information was derived from
the condensed consolidated interim financial statements for the
quarter ended March 31, 2014 with certain comparative figures and
is prepared in accordance with International Financial Reporting
Standards ("IFRS"). EBITDA is provided to assist
management and investors in determining the Corporation's cash flow
provided by operations before interest, taxes, depreciation and
amortization and does not have any meaning prescribed in IFRS and
may not be comparable to similar measures presented by other
companies. Refer to Non- GAAP measures - EBITDA following for the
reconciliation between this non-GAAP financial measure and
comparable measures calculated in accordance with IFRS. |
Operating Results
For the period ending March 31, 2014 ("Q1 2014") electricity sales of
$87,765 decreased $37,393 or 34.3% from March 31, 2013 ("Q1 2013") sales of $125,158 as a direct result of a decrease in
electricity generated to 1,367 MWh from 2,080 MWh. Electricity
production was down due to lower hydrology conditions for the year
despite an overall improvement in the facility's conversion
effectiveness.
Q1 2014 plant operating expense of $139,774 increased by $4,430 or 3.3% from the Q1 2013 figure of
$135,344. The increase was due
to added maintenance in the quarter.
General and administration ("G&A") expense
of $282,002 during Q1 2014 was
$98,071 or 25.8% lower than the total
of $380,073 during Q1 2013. The
decreased G&A was due to reduced project development activities
in Q1 2014.
The Corporation incurred net finance costs of
$400,331 during Q1 2014 compared to
$412,547 for Q1 2013. This decrease
of $12,216 or 3% was due to a
reduction in the long term debt for the Brandywine facility.
Funds used in operations in Q1 2013 were
$594,533 compared to funds from
operations of $135,806 in the current
period. This improvement of $730,339 was due to changes in working capital
items
Financial Position and Going Concern
As at March 31,
2014, the Corporation had $500,061 cash on hand, of which $5,113 was restricted cash. These cash
resources will be used to fund the Corporation's ongoing working
capital requirements.
The success of the Corporation is dependent on
its ability to economically generate electrical power and its
ability to sell the electricity generated on a profitable basis to
BC Hydro and other Electricity Purchase Agreements. There is
no certainty that such events will occur and that sources of
financing will be obtained on acceptable terms. Whether and
when the Corporation can achieve profitability and positive cash
flow is also uncertain. These material uncertainties cast
significant doubt on the Corporation's ability to continue as a
going concern.
On May 5, 2014, a
definitive arrangement agreement ("Arrangement") was entered into
with Concord SCCP General Partner (I) Inc. ("Concord"), ROR
Acquisition Ltd. ("AcquireCo"), a wholly-owned subsidiary of
Concord, the Company (or ROR
Power), Rockford Energy Corp. ("REC"), a wholly-owned subsidiary of
the Company, and 0999130 B.C. Ltd to sell the Corporation and the
remaining development assets held in the Corporation. If the
completion of the transaction is unsuccessful and the Corporation
is unable to find another entity to fund operations, the
Corporation would be considered insolvent.
Non-GAAP Measures
The Company reports its financial position, results of
operations and cash flows in accordance with IFRS.
About Run of River Power Inc.
ROR develops renewable, sustainable energy
through its portfolio of clean energy projects. The Company helps
diversify BC's energy mix by providing a cleaner way to generate
power and increasing the security of BC's energy supply. ROR
operates an Eco Logo© certified hydroelectric power generation
station at Brandywine Creek, near Whistler, BC that provides green power for
about 4,000 homes.
Disclaimer Regarding Forward Looking
Information
Certain information included in this press
release constitutes forward-looking information under applicable
securities legislation. Forward-looking information typically
contains statements with words such as "anticipate", "believe",
"expect", "plan", "intend", "estimate", "propose", "project" or
similar words suggesting future outcomes or statements regarding an
outlook, or statements that certain events or conditions "may"
occur. Forward-looking information in this press release
includes, but is not limited to, statements regarding the
expectations of management of ROR regarding: (i) the Transaction;
(ii) completion of the Transaction; (iii) entry into the Payment
Indenture; (iv) the intended results of the Transaction; (v) the
conditions to completion of the Transaction; (vi) the calculation
of and timing for payment of the ROR Consideration to the
Shareholders; (vii) the Shareholders' meeting in connection with
the Transaction; (viii) receipt of a fairness opinion and valuation
in connection with the Transaction; (ix) the preparation and
delivery of an information circular in connection with a
Shareholders meeting to consider the Transaction; and * the
proposed de-listing of the ROR Shares and the proposed ceasing to
be a reporting issuer of ROR.
Although ROR believes that the expectations
reflected in the forward-looking information are reasonable, undue
reliance should not be placed on forward-looking information
because ROR can give no assurance that such expectations will prove
to be correct. Such forward-looking statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
statements including, without limitation, the risks that: (1) the
Transaction may not be completed for any reason whatsoever,
including that the requisite Shareholder, court and/or regulatory
approval of the Transaction may not be obtained or that AcquireCo
and/or the REC Acquirer may not have the necessary funds to make
the Advance and the REC Purchase Price available to ROR; (2) an
Payment Indenture may never be entered into for any reason
whatsoever; (3) the Transaction, if completed, may not have the
intended effect as set out in this news release; (4) the aggregate
amount of the ROR liabilities to be deducted from the Available
Funds may be significant, and the resulting ROR Consideration, if
any, may be nominal; (5) the meeting of Shareholders to consider
the Transaction may not occur; (6) a fairness opinion and/or
valuation may not be obtained, or if obtained, may not provide a
favourable opinion as to the fairness or value of the Transaction;
(7) the information circular and other materials for the meeting of
Shareholders may not be prepared or delivered to Shareholders as
expected; (8) the ROR Shares may not be de-listed and ROR may not
cease to be a reporting issuer following closing for any reason
whatsoever, and (9) such other risks and uncertainties beyond the
control of ROR.
Readers are cautioned that the foregoing list is
not exhaustive of all factors and assumptions which have been used.
The forward-looking information contained in this press release is
made as of the date hereof and ROR undertakes no obligation to
update publicly or revise any forward-looking information, whether
as a result of new information, future events or otherwise, unless
required by applicable securities laws. The forward looking
information contained in this press release is expressly qualified
by this cautionary statement.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Run of River Power Inc.