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ORMAT TECHNOLOGIES, INC. Earnings Release 2017
6968_rns_2017-11-09_fe917c84-d0e9-4623-92a6-6580a5dfc6fb.pdf
Earnings Release
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: November 7, 2017
Ormat Technologies, Inc.
(Exact Name of Registrant as Specified in Its Charter)
001-32347
(Commission File Number)
Delaware (State of Incorporation)
6225 Neil Road, Reno, Nevada (Address of Principal Executive Offices) 89511-1136
(Zip Code)
No. 88-0326081 (I.R.S. Employer Identification No.)
(775) 356-9029
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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TABLE OF CONTENTS
| Item 2.02 Results of Operation and Financial Condition | |
|---|---|
| Item 9.01 Financial Statements and Exhibits | |
| Signatures | |
| Exhibit Index | |
| Exhibit 99.1 | |
| Ex-99.1 Press Release | |
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02. Results of Operations and Financial Condition.
On November 7, 2017, Ormat Technologies, Inc. (the "Registrant") reported its earnings for its third fiscal quarter of 2017. A copy of the Registrant's press release containing this information is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The Registrant is making reference to non-GAAP financial measures in the press release. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
The following exhibit is furnished as part of this report on Form 8-K:
99.1 Press release of the Registrant dated November 7, 2017 containing financial information for its third fiscal quarter of 2017.
Safe Harbor Statement
Information provided in this report on Form 8-K 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 statements generally relate to the Registrant's plans, objectives and expectations for future operations and are based upon management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2017.
These forward-looking statements are made only as of the date hereof, and the Registrant undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ORMAT TECHNOLOGIES, INC. (Registrant)
By /s/ Isaac Angel
Isaac Angel Chief Executive Officer
Date: November 8, 2017
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EXHIBIT INDEX
| Exhibit | ||
|---|---|---|
| Number | Description | |
| 99.1 | Press Release of Registrant dated November 7, 2017 |
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Exhibit 99.1
Ormat Technologies Contact: Smadar Lavi VP Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) [email protected]
Investor Relations Agency Contact: Rob Fink Hayden - IR 646-415-8972 [email protected]
ORMAT TECHNOLOGIES REPORTS 2017 THIRD QUARTER EARNINGS
MANAGEMENT AFFIRMS FULL-YEAR TOTAL REVENUE AND ADJUSTED EBITDA GUIDANCE
RENO, Nev. November 7, 2017, Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the third quarter ended September 30, 2017.
| (\$ millions, except per share amounts) | Q3 2017 | Q3 2016 | Change |
|---|---|---|---|
| Revenues | |||
| Electricity | \$ 112.3 |
\$ | 109.8 2.3% |
| Product | \$ 44.9 |
\$ | 74.8 (40.0%) |
| Total Revenues | \$ 157.2 |
\$ | 184.6 (14.9%) |
| Gross margin (%) | |||
| Electricity | 41.4% | 39.4% 5.1% |
|
| Product | 28.3% | 41.7% (32.2%) |
|
| Gross margin (%) | 37.7% | 40.3% (6.6%) |
|
| Operating income | \$ 44.0 |
\$ | 48.2 (8.8%) |
| Net income attributable to the Company's shareholders | \$ 19.2 |
\$ | 12.1 58.8% |
| Diluted EPS | \$ 0.38 |
\$ | 0.24 58.3% |
| Adjusted Net income attributable to the Company's stockholders (1) | \$ 21.1 |
\$ | 28.1 (24.9%) |
| Adjusted Diluted EPS (1) | \$ 0.42 |
\$ | 0.56 (25.0%) |
| Adjusted EBITDA | \$ 76.4 |
\$ | (10.5%) 85.4 |
1 Adjusted Net income attributable to the Company's stockholders and diluted EPS for the third quarter of 2017 excludes \$1.9 million or \$0.04 per diluted share, attributable to a one-time make whole premium paid in connection with the prepayment of OFC Senior Secured Notes and DEG loan. Adjusted Net income attributable to the Company's stockholders and diluted EPS for the third quarter of 2016 excludes \$16.0 million or \$0.32 per diluted share, related to \$11.0 million of expenses related to the settlement of a previously outstanding claim and \$5.0 million in one-time prepayment fees.
ORMAT TECHNOLOGIES, INC.
6225 Neil Road Reno, Nevada • +1-775-356-9029 • [email protected] ormat.com
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Third quarter 2017 highlights and recent developments:
- ● Total revenues of \$157.2 million, down 14.9% compared to the third quarter of 2016;
- ● Electricity segment revenues of \$112.3 million, up 2.3% compared to the third quarter of 2016, mainly due to higher performance of our Puna plant in Hawaii, our Bouillante power plant in Guadeloupe and partial contribution of the recently commenced Platanares power plant in Honduras, as well as revenue generated from our demand response and storage activity;
- ● Product segment revenues of \$44.9 million, down 40.0% compared to the third quarter of 2016, mainly due to near-completion of our Sarulla contract; Revenue for the full year 2017 are expected to remain on track with our full year guidance;
- ● Electricity generation decreased 2.2%, compared to the third quarter of 2016, from 1.26 million MWh to 1.23 million MWh;
- ● Gross margin was 37.7% of total revenues compared to 40.3% in the third quarter of 2016, due to lower revenues and lower margins in the Product segment, as expected; Electricity segment gross margin increased to 41.4% from 39.4%;
- ● Operating income decreased 8.8% to \$44.0 million compared to \$48.2 million in the third quarter of 2016;
- ● Net income attributable to the company's shareholders was \$19.2 million, or \$0.38 per diluted share, compared to \$12.1 million, or \$0.24 per diluted share, in the third quarter of 2016;
- ● Adjusted net income attributable to the company's shareholders of \$21.1 million, or \$0.42 per diluted share, compared to \$28.1 million, or \$0.56 per diluted share, in the third quarter of 2016;
- ● Adjusted EBITDA of \$76.4 million, down 10.5% compared to \$85.4 million in the third quarter of 2016;
- ● Declared a quarterly dividend of \$0.08 per share for the third quarter of 2017;
- ● Commenced commercial operation of the 35 MW Platanares power plant, the first geothermal power plant in Honduras that is expected to generate approximately \$33 million of annual revenues; and
- ● Commenced commercial operation of the second unit of the Sarulla geothermal power plant, located in Indonesia's North Sumatra and expanded its generating capacity to 220 MW (28 MW Ormat's share);
"This was a strategically important quarter in our electricity segment, as we increased revenue and gross margin mainly due to the performances of our Bouillante power plant in Guadeloupe, and our Puna plant in Hawaii," commented Isaac Angel, Chief Executive Officer. "Our revenues and gross margin from our electricity segment continue to benefit from our ongoing efforts to improve efficiencies, and we expect further improvements in 2018 and beyond. Our Platanares power plant in Honduras commences operation toward the end of the third quarter and contributed to the electricity segment results as well. We are very excited about the long-term potential in Honduras and with Platanares, our first facility in the region. We expect the Tungsten Mountain project in Nevada to come online by the end of 2017. Tungsten Mountain will increase our portfolio to 800 MW and will further strengthen our results and contribute to our innovative portfolio PPA with SCPPA."
"Product segment revenue for the full year 2017 is expected to remain strong," added Mr. Angel. "As we have previously indicated, quarterly fluctuations in our product segment do occur based on the status and timing of our sales orders, delivery of raw materials and the completion of manufacturing of such orders. Such fluctuations may cause lower revenues and profitability on a quarterly basis as it did in the quarter. Our efforts to secure new orders bore fruit and we reached a backlog of \$182 million as of November 7, 2017, strengthening and supporting our product segment revenue in 2018."
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Guidance
Mr. Angel added, "We remain confident in our full-year outlook, and are narrowing our guidance range, and slightly increasing the expectations for the total revenue and Adjusted EBITDA, based on increasing visibility into our fourth quarter results.
We reiterate our guidance and we expect full-year 2017 total revenues between \$686.0 million and \$696.0 million with electricity segment revenues between \$463.0 million and \$468.0 million and product segment revenues between \$223.0 million and \$228.0 million. We expect 2017 Adjusted EBITDA between \$343.0 million and \$348.0 million for the full year. We expect annual Adjusted EBITDA attributable to non-controlling interest to be approximately \$23.0 million."
Third Quarter 2017 Financial Results
For the three months ended September 30, 2017, total revenues were \$157.2 million, down from \$184.6 million for the three months ended September 30, 2016, a decrease of 14.9%. Electricity segment revenues increased 2.3% to \$112.3 million for the three months ended September 30, 2017, up from \$109.8 million for the three months ended September 30, 2016. Product segment revenues decreased 40.0% to \$44.9 million for the three months ended September 30, 2017, from \$74.8 million for the three months ended September 30, 2016.
General and administrative expenses for the three months ended September 30, 2017 were \$10.9 million, or 6.9% of total revenues, compared to \$19.1 million, or 10.3% of total revenues, for the three months ended September 30, 2016. The decrease was primarily attributable to \$11.0 million expenses in the three months ended September 30, 2016, related to a settlement of a previously outstanding claim. The decrease was partially offset by general and administrative expenses attributable to the demand response and storage activity that we acquired on March 15, 2017.
The company reported net income attributable to the company's shareholders of \$19.2 million, or \$0.38 per diluted share, compared to net income attributable to the company's shareholders of \$12.1 million, or \$0.24 per diluted share, for the same period last year. This increase in net income was primarily attributable to a decrease of \$5.4 million in interest expense, net, related to the early repayment of two higher interest loans and a decrease in other non-operating expense of \$4.0 million, partially offset by a decrease in operating income of \$4.3 million. Adjusted net income attributable to the company's shareholders was \$21.1 million, or \$0.42 per diluted share, which excludes \$1.9 million or \$0.04 per diluted share of attributable to the make whole premium associated with the full prepayment of the OFC Senior Secured Notes and DEG loan.
Adjusted EBITDA for the three months ended September 30, 2017 was \$76.4 million, compared to \$85.4 million for the three months ended September 30, 2016, a decrease of 10.5%. The reconciliation of GAAP net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA and additional cash flow information is set forth below in this release.
Backlog
Ormat's Product segment backlog, as of November 8, 2017, was \$182.0 million, which included revenues for the period between October 1, and November 8, 2017.
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Dividend
On November 7, 2017, the Company's Board of Directors approved and authorized payment of a quarterly dividend of \$0.08 per share pursuant to the company's dividend policy. The dividend will be paid on December 5, 2017 to shareholders of record as of the close of business on November 21, 2017.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. ET on Wednesday, November 8, 2017. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the New & Events in the Investor Relations section of Ormat's website.
An archive of the webcast will be available approximately 30 minutes after the conclusion of the live call.
Please ask to be joined into the Ormat Technologies, Inc. call.
| Participant telephone numbers | |
|---|---|
| Participant dial in (toll free): | 1-877-511-6790 |
| Participant international dial in: | 1-412-902-4141 |
| Canada Toll Free | 1-855-669-9657 |
| Conference replay | |
| US Toll Free: | 1-877-344-7529 |
| International Toll: | 1-412-317-0088 |
| Replay Access Code: | 10113007 |
About Ormat Technologies
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (REG), with the objective of becoming a leading global provider of renewable energy. The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. With 73 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 530 employees in the United States and 720 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,200 MW of gross capacity. Ormat's current 776 MW generating portfolio is spread globally in the U.S., Guatemala, Guadeloupe, Honduras, Indonesia and Kenya. Ormat also intends to expand its operations and provide energy management and energy storage solutions, by leveraging its core capabilities and global presence as well as through its Viridity Energy Solutions, Inc. subsidiary, a Philadelphia-based company with nearly a decade of expertise and leadership in demand response, energy management and storage.
Ormat's Safe Harbor Statement
Information provided in this press release 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 statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2017.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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Ormat Technologies, Inc. and Subsidiaries
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Nine-Month Periods Ended September 30, 2017 and 2016
(Unaudited)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2017 2016 |
2017 | 2016 | ||||||
| (In thousands, except per share data) | (In thousands, except per share data) | |||||||
| Revenues: | ||||||||
| Electricity | \$ | 112,273 | \$ | 109,795 | \$ | 339,826 | \$ | 321,664 |
| Product | 44,912 | 74,822 | 186,621 | 174,408 | ||||
| Total revenues | 157,185 | 184,617 | 526,447 | 496,072 | ||||
| Cost of revenues: | ||||||||
| Electricity | 65,774 | 66,481 | 197,249 | 192,410 | ||||
| Product | 32,218 | 43,647 | 125,102 | 99,504 | ||||
| Total cost of revenues | 97,992 | 110,128 | 322,351 | 291,914 | ||||
| Gross profit | 59,193 | 74,489 | 204,096 | 204,158 | ||||
| Operating expenses: | ||||||||
| Research and development expenses | 716 | 1,086 | 2,368 | 2,030 | ||||
| Selling and marketing expenses | 3,630 | 4,793 | 12,083 | 12,136 | ||||
| General and administrative expenses | 10,877 | 19,093 | 33,027 | 36,625 | ||||
| Write-off of unsuccessful exploration activities | — | 1,294 | — | 2,714 | ||||
| Operating income | 43,970 | 48,223 | 156,618 | 150,653 | ||||
| Other income (expense): | ||||||||
| Interest income | 255 | 266 | 861 | 831 | ||||
| Interest expense, net | (11,692) | (17,137) | (41,155) | (51,561) | ||||
| Derivatives and foreign currency transaction gains (losses) | (1,001) | (222) | 2,040 | (2,592) | ||||
| Income attributable to sale of tax benefits | 3,506 | 3,463 | 14,019 | 12,380 | ||||
| Other non-operating expense, net | (1,592) | (5,546) | (1,678) | (5,306) | ||||
| Income before income taxes and equity in losses of investees | 33,446 | 29,047 | 130,705 | 104,405 | ||||
| Income tax provision (benefit) | (11,003) | (11,988) | (28,258) | (29,387) | ||||
| Equity in losses of investees, net | 337 | (2,653) | (1,690) | (4,734) | ||||
| Net income | 22,780 | 14,406 | 100,757 | 70,284 | ||||
| Net income attributable to noncontrolling interest | (3,599) | (2,326) | (11,228) | (4,584) | ||||
| Net income attributable to the Company's stockholders | \$ | 19,181 | \$ | 12,080 | \$ | 89,529 | \$ | 65,700 |
| Earnings per share attributable to the Company's stockholders - Basic and diluted: | ||||||||
| Basic: | ||||||||
| Net Income | \$ | 0.38 | \$ | 0.24 | \$ | 1.79 | \$ | 1.33 |
| Diluted: | ||||||||
| \$ | 0.38 | \$ | 0.24 | \$ | 1.77 | \$ | 1.31 | |
| Net Income | ||||||||
| Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: |
||||||||
| Basic | 50,367 | 49,599 | 49,942 | 49,410 | ||||
| Diluted | 50,867 | 50,289 | 50,669 | 50,097 | ||||
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Ormat Technologies, Inc. and Subsidiaries Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheet As of September 30, 2017 and December 31, 2016 (Unaudited)
| September 30, 2017 |
December 31, 2016 (In thousands) |
|||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | \$ | 77,212 | \$ | 230,214 |
| Restricted cash, cash equivalents and marketable securities | 42,559 | 34,262 | ||
| Receivables: | ||||
| Trade | 98,384 | 80,807 | ||
| Other | 11,591 | 17,482 | ||
| Inventories | 18,685 | 12,000 | ||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 42,087 | 52,198 | ||
| Prepaid expenses and other | 41,727 | 45,867 | ||
| Total current assets | 332,245 | 472,830 | ||
| Investment in an unconsolidated company | 25,367 | — | ||
| Deposits and other | 17,371 | 18,553 | ||
| Deferred charges | 43,972 | 43,773 | ||
| Property, plant and equipment, net | 1,621,012 | 1,556,378 | ||
| Construction-in-process | 350,872 | 306,709 | ||
| Deferred financing and lease costs, net | 5,426 | 3,923 | ||
| Intangible assets, net | 86,806 | 52,753 | ||
| Goodwill | 20,667 | 6,650 | ||
| Total assets | \$ | 2,503,738 | \$ | 2,461,569 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | \$ | 103,335 | \$ | 91,650 |
| Short-term revolving credit lines with banks (full recourse) | 33,900 | — | ||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 6,015 | 31,630 | ||
| Current portion of long-term debt: | ||||
| Limited and non-recourse: | ||||
| Senior secured notes | 27,847 | 32,234 | ||
| Other loans | 21,495 | 21,495 | ||
| 864 | 12,242 | |||
| Full recourse | ||||
| Total current liabilities | 193,456 | 189,251 | ||
| Long-term debt, net of current portion: | ||||
| Limited and non-recourse: | ||||
| Senior secured notes | 322,299 | 350,388 | ||
| Other loans | 247,401 | 261,845 | ||
| Full recourse: | ||||
| Senior unsecured bonds | 203,715 | 203,577 | ||
| Other loans | 48,957 | 57,063 | ||
| Accumulated losses of unconsolidated company in excess of investment | — | 11,081 | ||
| Liability associated with sale of tax benefits | 46,803 | 54,662 | ||
| Deferred lease income | 52,273 | 54,561 | ||
| Deferred income taxes | 54,495 | 35,382 | ||
| Liability for unrecognized tax benefits | 6,188 | 5,738 | ||
| Liabilities for severance pay | 20,364 | 18,600 | ||
| Asset retirement obligation | 24,740 | 23,348 | ||
| Other long-term liabilities | 19,121 | 21,294 | ||
| Total liabilities | 1,239,812 | 1,286,790 | ||
| Redeemable non-controlling interest | 6,481 | 4,772 | ||
| Equity: | ||||
| The Company's stockholders' equity: | ||||
| Common stock | 51 | 50 | ||
| Additional paid-in capital | 896,005 | 869,463 | ||
| Retained earnings (accumulated deficit) | 289,561 | 216,644 | ||
| Accumulated other comprehensive income (loss) | (5,634) | (7,732) | ||
| 1,179,983 | 1,078,425 |
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|---|---|---|---|
| Total equity Total liabilities and equity |
\$ 1,257,445 2,503,738 |
\$ 1,170,007 2,461,569 |
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| Description: FORM 8-K, date of report 11-07-17 | Project ID: 40676 | Created At: 11/8/2017 12:47:32 PM EST |
Ormat Technologies, Inc. and Subsidiaries Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information For the Three and Nine-Month Periods Ended September 30, 2017 and 2016 (Unaudited)
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 assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction cost, (vi) stock-based compensation, (vii) gain from extinguishment of liability, and (viii) gain on sale of subsidiary and property, plant and equipment. EBITDA and Adjusted EBITDA are not a measurement of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.
The following tables reconcile net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA for the three-month and nine months periods ended September 30, 2017 and 2016.
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |||||
| (in thousands) | (in thousands) | |||||||
| Net cash provided by operating activities | \$ | 52,375 | \$ | 38,454 | \$ | 166,533 | \$ | 158,027 |
| Adjusted for: | ||||||||
| Interest expense, net (excluding amortization of deferred financing costs) | 10,515 | 15,977 | 37,186 | 47,269 | ||||
| Interest income | (255) | (266) | (861) | (831) | ||||
| Income tax provision | 11,003 | 11,988 | 28,258 | 29,387 | ||||
| Adjustments to reconcile net income or loss to net cash provided by operating activities | ||||||||
| (excluding depreciation and amortization) | (2,667) | 2,259 | 15,234 | (10,178) | ||||
| EBITDA | \$ | 70,971 | \$ | 68,412 | \$ | 246,350 | \$ | 223,674 |
| Mark-to-market gains or losses from accounting for derivatives | 1,663 | (1,697) | (800) | 797 | ||||
| Stock-based compensation | 1,861 | 1,724 | 7,204 | 3,383 | ||||
| Gains or losses on sale of subsidiary and property, plant and equipment | — | (686) | — | (686) | ||||
| Gains or losses from extinguishment of debt | 1,950 | 5,780 | 1,950 | 5,780 | ||||
| Termination fees | — | 11,000 | — | 11,000 | ||||
| Merger and acquisition transaction cost | — | (412) | 1,700 | 235 | ||||
| Write-off of unsuccessful exploration activities | — | 1,294 | — | 2,714 | ||||
| Adjusted EBITDA | \$ | 76,445 | \$ | 85,415 | \$ | 256,404 | \$ | 246,897 |
| Net cash used in investing activities | \$ | (67,465) | \$ | (69,900) | \$ | (261,570) | \$ | (125,189) |
| Net cash provided by (used in) financing activities | \$ | (26,088) | \$ | (71,045) | \$ | (57,965) | \$ | (128,692) |
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| Document Type: 8-K Document Type: EX-99.1 |
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| Project Type: 8-K | Document Version: TBD | Created By: Sean Martindale |
| Description: FORM 8-K, date of report 11-07-17 | Project ID: 40676 | Created At: 11/8/2017 12:47:32 PM EST |
| Filer: Ormat Technologies, Inc Project Type: 8-K |
Document Type: 8-K Document Type: EX-99.1 Document Version: TBD |
9 Sequence: Created By: Sean Martindale |
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| Description: FORM 8-K, date of report 11-07-17 | Project ID: 40676 | Created At: 11/8/2017 12:47:32 PM EST | |||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||
| (in thousands) | (in thousands) | ||||||||||
| Net income | \$ | 22,780 | \$ | 14,406 | \$ | 100,757 | \$ | 70,284 | |||
| Adjusted for: | |||||||||||
| Interest expense, net (including amortization of deferred financing costs) | 11,437 | 16,871 | 40,294 | 50,730 | |||||||
| Income tax provision | 11,003 | 11,988 | 28,258 | 29,387 | |||||||
| Depreciation and amortization | 25,751 | 25,147 | 77,041 | 73,273 | |||||||
| EBITDA | \$ | 70,971 | \$ | 68,412 | \$ | 246,350 | \$ | 223,674 | |||
| Mark-to-market gains or losses from accounting for derivatives | 1,663 | (1,697) | (800) | 797 | |||||||
| Stock-based compensation | 1,861 | 1,724 | 7,204 | 3,383 | |||||||
| Gains or losses on sale of subsidiary and property, plant and equipment | — | (686) | — | (686) | |||||||
| Gains or losses from extinguishment of debt | 1,950 | 5,780 | 1,950 | 5,780 | |||||||
| Settlement expenses | — | 11,000 | — | 11,000 | |||||||
| Merger and acquisition transaction cost | — | (412) | 1,700 | 235 | |||||||
| Write-off of unsuccessful exploration activities | — | 1,294 | — | 2,714 | |||||||
| Adjusted EBITDA | \$ | 76,445 | \$ | 85,415 | \$ | 256,404 | \$ | 246,897 | |||
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