Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), an independent solar power producer, today released its condensed consolidated interim financial statements and related management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2012.
First Quarter 2012 Highlights
Production: Produced 20.1 million (2011: 12.2 million) kilowatt-hours of solar electricity from seven solar power projects, comprised of seventeen solar power plants. Revenue: Generated solar electricity revenues of US$10.7 million (2011: US$7.3 million).
EBITDA: Recognized earnings before interest, tax, depreciation and amortization (“EBITDA”) of US$9.1 million (2011: US$5.0 million).
Working Capital: Closed the first quarter of 2012 with a cash balance of US$38.2 million and positive working capital of US$21.9 million.
Management Comments
Marco A. Northland, the Company’s Chief Executive Officer, commented: “With a fully-funded solar portfolio of 60 megawatts (“MW”), we have substantial revenues and cash flows from operations and our solar parks continue to perform above budget. We look forward to entering the season of higher solar irradiation.”
Mr. Northland continued: “2012 continues to be an exciting year as we pursue our plans to diversify into new markets, particularly in the Americas and increase our installed capacity. We are making excellent progress on our development opportunities in Chile and look forward to providing an update on the new market and development pipeline next quarter. Etrion is well positioned to expand, diversify and achieve sustainable growth from market-driven energy contracts with industrial clients in markets with high electricity prices and attractive solar irradiation.”
Results
During the three months ended March 31, 2012, the Company reported a net loss of US$2.3 million (loss per share of US$0.01) compared to a net loss of US$1.5 million (loss per share of US$0.01) for the three months ended March 31, 2011.
The net results were adversely affected by non-cash items of US$3.7 million, including depreciation and amortization of US$5.1 million offset by other income of US$1.4 million associated with Mr. Northland’s previously held 10% equity interest in the Company’s subsidiary Solar Resources Holding Sarl. Excluding these non-cash items, the Company’s net income1 for the three months ended March 31, 2012, would have been US$1.4 million.
Solar-related revenues are subject to seasonality over the year due to the variability of daily sun hours in the summer versus winter months. However, for the three months ended March 31, 2012, the Company’s solar power projects performed approximately 16% above budget.