Adjusted net income of US$5.9 million for the quarter compared to an adjusted net income of US$3.6 million in the same period of the prior year
Second quarter 2012 Revenue of US$19.2 million, up 8% from prior year
Second quarter 2012 EBITDA of US$16 million, up 24% from prior year
Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), an independent solar power producer, has released its condensed consolidated interim financial statements and related management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2012.
Second Quarter 2012 Highlights
Production: Produced 37.4 million (2011: 29.3 million) and 57.4 million (2011: 42.1 million) kilowatt-hours of solar electricity for the three and six months ended June 30, 2012, respectively, from seven solar power projects, comprising seventeen solar power plants.
Revenue: Generated solar electricity revenues of US$19.2 million (2011: US$17.8 million) and US$29.9 million (2011: US$25.1 million) for the three and six months ended June 30, 2012, respectively.
EBITDA: Recognized earnings before interest, tax, depreciation and amortization (“EBITDA”) of US$16 million (2011: US$12.9 million) and US$25.1 million (2011: US$17.9 million) for the three and six months ended June 30, 2012, respectively.
Working Capital: Closed the second quarter of 2012 with a cash balance of US$31.3 million and positive working capital of US$25.1 million.
Management Comments
Marco A. Northland, the Company’s Chief Executive Officer, commented: “Etrion has a strong operating platform in Italy, which provides stable revenues and cash flows. Our team is committed to operational excellence and our plants continue to perform above plan.”
Mr. Northland continued: “2012 continues to be an exciting year as we pursue our plans to diversify into new markets, evolving beyond the need for government incentives. With the cost of solar generation continuing to drop, we believe Etrion can provide competitive electricity solutions to industrial clients. We are making excellent progress on our development opportunities in Chile and are currently negotiating our first power purchase agreement for a solar power project expected to be constructed in 2013. Our focus is on markets with abundant renewable resources, high wholesale electricity prices and a large energy demand, which will enable Etrion to grow and diversify through new opportunities.”
Results
During the three and six months ended June 30, 2012, the Company reported a net income of US$0.8 million (earnings per share of US$0.004) and a net loss of US$1.5 million (loss per share of US$0.008), respectively, compared to a net loss of US$2.1 million (loss per share of US$0.012) and US$3.6 million (loss per share of US$0.02) for the comparable periods in 2011.
The net results for the three months ended June 30, 2012, were adversely affected by non-cash items of US$5.1 million, including depreciation and amortization of US$4.9 million, unrealized fair value losses associated with derivative financial instruments of US$0.1 million and stock-based compensation of US$0.1 million. Excluding these non-cash items, the Company’s net income for the three months ended June 30, 2012, would have been US$5.9 million.
Despite a weakening of the Euro against the US dollar by 7% during the quarter compared to the same quarter of the prior year, Etrion generated significant revenues from operations and performed above plan.