Etrion Corporation today released its condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2015.
- Production Italy: Produced 34.6 million (2014: 34.6 million) and 88.4 million (2014: 86.5 million) kilowatt-hours ("kWh") of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company's 100%-owned 60 megawatt ("MW") portfolio comprising 17 solar power plants in Italy.
- Production Chile: Produced 36.5 million (2014: nil) and 113.2 million (2014: nil) kWh of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company's 70%-owned 70MW Salvador solar power plant in Chile.
- Production Japan: Produced 2.6 million (2014: nil) and 3.2 million (2014: nil) kWh of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company's 87%-owned 9.3MW Mito solar power project, comprising five solar power plants in Japan.
- Operations and Maintenance ("O&M"): Renegotiated the various O&M agreements with ABB, SMA and SunPower for the Company's 60MW portfolio in Italy to reduce expected costs by approximately US$1.6 million per year while increasing the level of service.
- Revenue: Generated revenues of US$15.9 million (2014: US$17.1 million) and US$43.4 million (2014: US$43.3 million) during the three and nine months ended September 30, 2015, respectively.
- EBITDA: Recognized earnings before interest, taxes, depreciation and amortization ("EBITDA") of US$10.0 million (2014: US$13.2 million) and US$24.8 million (2014: US$31.2 million) during the three and nine months ended September 30, 2015, respectively.
- Cash and Working Capital: Closed the third quarter of 2015 with a cash balance of US$73.6 million (December 2014: US$95.3 million) and positive working capital of US$53.1 million (December 2014: US$36.5 million).
- VAT Reimbursement: Fully repaid Project Salvador's total outstanding VAT credit facility of US$24 million five months ahead of schedule following cash reimbursement from the Chilean tax authorities for VAT credits accumulated during construction.
Marco A. Northland, the Company's Chief Executive Officer, commented, "We reported slightly lower revenue and EBITDA than last year due to lower prices in Italy, the lower EUR/USD exchange rate and extraordinary impairment charges, but we look forward to adding fully-funded solar projects in Japan over the next 12 months."
Effective immediately, Tom Dinwoodie has resigned from the board of directors in order to spend more time on environmental policy projects.
Etrion's Chairman, Ian Lundin, commented, "We thank Tom for his commitment to Etrion over the last few years. He brought a unique perspective to the board from his passion for sustainable energy and resource efficiency, and he will be missed."
Effective November 16, 2015, the Company has appointed Paul Rapisarda as Chief Financial Officer. Mr. Rapisarda replaces Garrett Soden who will remain on the board.
Paul Rapisarda has more than 20 years of experience in direct investing, investment banking and public company senior executive roles. He has a strong background in the energy industry, including cross-border and emerging markets experience. Mr. Rapisarda was most recently Executive Vice President – Commercial Development at Atlantic Power Corporation (NYSE: AT/TSX: ATP), a Canadian independent power producer with substantial assets in renewable technologies such as wind, hydro and biomass. Prior to that, he was a Principal at Compass Advisors LLC, a boutique M&A advisory and private equity firm. Mr. Rapisarda holds a bachelor's degree from Amherst College and an MBA from Harvard Business School.
Etrion's CEO, Marco A. Northland, commented, "I am very pleased with the appointment of Paul as Chief Financial Officer. He has extensive experience and deep relationships in the energy sector. Paul has raised debt and equity capital in both the public and private markets, and he will be a great addition to the team as we look to grow the Company long-term in the most efficient way possible."
During the three months ended September 30, 2015, Etrion reported a net loss of US$4.4 million (loss per share of US$0.009) compared to a net income of US$1.2 million (earning per share of US$0.004) for the comparable period in 2014. Despite negative consolidated net results, primarily attributable to lower electricity prices, exchange rates and the impairment of US$0.4 million in capitalized development costs, the Company reported a gross profit of US$7.2 million (2014: US$10.0 million) and generated adjusted operating cash flow of US$10.5 million (2014: US$17.8 million).
During the nine months ended September 30, 2015, Etrion reported a net loss of US$16.9 million (loss per share of US$0.042) compared to a net loss of US$8.4 million (loss per share of US$0.026) for the comparable period in 2014. The net results during this period were adversely impacted by lower electricity prices, exchange rates and the impairment of capitalized development costs.