Run of River Power Reports Third Quarter Results

VANCOUVER, Nov. 28, 2013 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSXV: ROR) today announced financial and operating results for the quarter ended September 30, 2013. The condensed consolidated interim financial statements and management discussion and analysis will be filed to SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.

Highlights

For the three and nine month period ending September 30, 2013 the Company recorded net income of $208,121 and $2,466,270 respectively. The recognition of net earnings for the three and nine month periods ended September 30, 2013, compared with a net loss for the same periods in 2012, is in part due to unrealized gains on derivative financial instruments and a fair value adjustment on the convertible royalty interest. The following table outlines the impact on net earnings (loss) of the unrealized net gain (loss) on derivative financial instruments and convertible royalty interest:

(In $'s)	Three months		Nine months
For the periods ended September 30	2013	2012	2013	2012
Net income (loss)	208,121	(327,535)	2,466,270	(1,866,605)
Add (Subtract) unrealized gain on derivative financial instruments	(1,856,503)	-	(5,416,936)	-
Add (Subtract) fair value adjustment on convertible royalty interest	2,411,446	-	2,411,446	-
Adjusted Net Income (Loss)	763,064	(327,535)	(539,220)	(1,866,605)

Financial Summary

($000's except per share and generation amounts) For the periods ended September 30	Three months		Nine months
	2013	2012	2013	2012
Electricity sales	745	725	1,605	1,535
Project development revenue	1,143	-	1,143	-
EBITDA	794	312	4,219	42
Net Income (Loss)	208	(328)	2,466	(1,867)
Basic and diluted earnings (loss) per share	0.00	(0.00)	0.02	(0.02)
Cash flow (used) from in operations	831	290	660	178
Total assets	28,951	29,178	28,951	29,178
Long-term debt	9,019	13,437	9,019	13,437
Generation-MWh	12,380	12,098	26,665	25,619

(1)

EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures section of the MD&A for an explanation and reconciliation.

Operating Results

For the three month period ending September 30, 2013 ("Q3 2013") electricity sales of $744,926 increased $19,981 or 2.8% compared to the three month period ending September 30, 2012 ("Q3 2012") sales of $724,945 as a direct result of increased electricity generated to 12,380 MWh from 12,098 MWh. For the nine month period ending September 30, 2013 ("YTD") electricity sales of $1,604,556 increased $68,837 or 4.5% compared to the nine month period ending September 30, 2012 ("2012 YTD") sales of $1,537,719. YTD production increased 4.1% to 26,665 MWh from 25,619 MWh. The increase in electricity generation and sales is attributable to increased conversion effectiveness as a result of the Brandywine runner upgrade completed in June 2013, using similar hydrology for comparative quarters.

Plant operations for Q3 2013 of $316,089 decreased by $13,753, or 4.2%, from the same quarter in 2012 of $329,842.  YTD plant operating expense of $940,378 decreased by $45,157, or 4.6%, from 2012 YTD expense of $985,535. The decrease was due to increased reliability at the plant.

The Company recorded net income for the third quarter of $208,121 compared to a loss of $327,535 for the comparable quarter in 2012. YTD net income of $2,466,270 increased $4,332,875 from the YTD 2012 loss of $1,866,605. The significant increase in net income is a result of net unrealized gains recorded on derivative financial instruments. The net loss before unrealized gains on derivative financial instruments and the fair value adjustment on the convertible royalty interest ("Adjusted Net Income (Loss)") for three and nine month period ending September 30, 2013 is earnings of $763,064 and a loss of $539,220 respectively.

The Adjusted Net Income for Q3 2013 was $763,064 which represents an increase in earnings of $1,090,599 from an Adjusted Net Loss of $327,535 due to the recognition of project development revenue in the quarter. The Corporation incurred an YTD Adjusted Net Loss of $539,220 compared to an Adjust Net Loss of $1,866,605 a decrease of $1,327,385.  The change in the Adjusted Loss compared to the YTD 2012 Adjusted Net Loss is a result of project development revenue being recognized for the development of the Skookum Project.

Funds from operations were $830,593 in the third quarter of 2013 compared to funds from operations of $290,321 for the third quarter of 2012.  YTD funds from operations were $659,893 compared to $177,679 for the comparable nine month period in 2012. The change in funds used in operations for the 2013 quarter and YTD is due to the increase revenue from project development and changes in working capital items.

Financial Position

At September 30, 2013, the Company had $1.1M in cash on hand. These cash resources will be used to fund operations.

The Company will need to raise capital to support its administrative obligations, pursue development of its other early stage projects as well as for the redemption of the 10% convertible debentures, should they not be converted into shares of the Company and for the redemption of the subordinated secured debentures which come due in January 2014.

Non-GAAP Measures

The Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS").

About Run of River Power Inc.

ROR Power 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 Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. The company is well positioned for profitable growth through power generation initiatives that include its economic interest in the 25 MW Skookum Power Project. ROR Power's total development potential is approximately 390 MW.

Forward-Looking Statements

Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

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.

Information Contact

Richard W. Hopp
President and CEO
Tel: [phone]
[email protected]