Etrion Releases Third Quarter 2012 Results
Third quarter 2012 Revenue of US$18.3 million, EBITDA of US$14.4 million
Net income of US$0.4 million for the quarter compared to a net loss of
US$2.8 million in the same period of the prior year
Adjusted net income of US$5.6 million for the quarter compared to an
adjusted net income of US$1.2 million in the same period of the prior
Positive cash flow of US$5.1 million for the quarter compared to a
negative cash flow of US$6.1 million in the same period of the prior
November 7, 2012, Geneva, Switzerland - 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 and nine months ended September 30, 2012.
Third Quarter 2012 Highlights
Production: Produced 35.6 million (2011: 30.9 million) and 93.1 million
(2011: 72.4 million) kilowatt-hours of solar electricity for the three
and nine months ended September 30, 2012, respectively, from seven solar
power projects, comprising seventeen solar power plants.
Revenue: Generated solar electricity revenues of US$18.3 million (2011:
US$18.2 million) and US$48.3 million (2011: US$43.3 million) for the
three and nine months ended September 30, 2012, respectively.
EBITDA: Recognized earnings before interest, tax, depreciation and
amortization ("EBITDA") of US$14.4 million (2011: US$14.9 million) and
US$39.6 million (2011: US$32.8 million) for the three and nine months
ended September 30, 2012, respectively.
Cash flow: Recognized positive cash flow of US$5.1 million during the
third quarter of 2012 (2011: negative cash flow of US$6.1 million).
Working Capital: Closed the third quarter of 2012 with a cash balance of
US$36.3 million and positive working capital of US$23.8 million.
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 and continues to perform above plan."
Mr. Northland continued: "2012 continues to be an exciting year as we
execute on our plans to diversify into new markets, evolving beyond the
need for government incentives. Operating without government subsidies
is a turning point for our Company, leading our industry in competing
with traditional sources of energy on an equal footing. We are making
excellent progress on our development pipeline in Chile where we will
enter into competitive power purchase agreements directly with
During the three and nine months ended September 30, 2012, the Company
reported a net income of US$0.4 million (earnings per share of US$0.002)
and a net loss of US$1.2 million (loss per share of US$0.006),
respectively, compared to a net loss of US$2.8 million (loss per share
of US$0.015) and US$6.5 million (loss per share of US$0.035),
respectively, for the comparable periods in 2011.
The net results for the three months ended September 30, 2012, were
adversely affected by non-cash items of US$5.2 million, including
depreciation and amortization of US$4.9 million, unrealized fair value
losses associated with derivative financial instruments of US$0.2
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
September 30, 2012, would have been US$5.6 million.
Despite a weakening of the Euro against the US dollar by 9% during the
quarter compared to the same quarter of the prior year, Etrion generated
significant revenues from operations and performed above plan.
A conference call/webcast to present the Company's third quarter results
will be held on Thursday, November 8, 2012 at 9:00 a.m. Eastern Standard
Time (EST) / 3:00 p.m. Central European Time (CET).
North America: +1-416-340-8061
North America Toll Free: +1-866-225-2055
Europe Toll Free: 00-800-6578-9898
A webcast will be available at
In addition, the presentation, along with the Company's condensed
consolidated interim financial statements and related management's
discussion and analysis for the three and nine months ended September
30, 2012, will be available on the Company's website (www.etrion.com).
A replay of the telephone conference will be available until December 9,
North America: +1-905-694-9451
North America Toll Free: +1-800-408-3053
Europe Toll Free: 00-800-3366-3052
Pass code for replay: 6439478
Etrion Corporation is an independent power producer that owns and
operates renewable assets. Etrion currently owns approximately 60
megawatts ("MW") of operational, ground-based solar photovoltaic power
plants in Italy. The Company is listed on the Toronto Stock Exchange in
Canada and the NASDAQ OMX Stockholm exchange in Sweden (ticker symbol
"ETX"). Etrion's largest shareholder is the Lundin family, which owns
approximately 22% of the Company's shares through various trusts.
For additional information, please visit the Company's website at
www.etrion.com or contact:
Cheryl Eversden - Chief Financial Officer
Telephone: +41 (22) 715 20 90
Note: The capacity of power plants in this release is described in
approximate MW on a direct current ("DC") basis, also referred to as
This news release includes non-IFRS measures not defined under IFRS,
specifically adjusted net income/loss. Non-IFRS measures have no
standardized meaning prescribed under IFRS and therefore such measures
may not be comparable with those used by other companies. Adjusted net
income/loss represents the Company's performance during the period on a
cash-flow basis, excluding non-cash items, such as depreciation, share
-based compensation, non-recurring other income/expenses and fair value
movements associated with derivative financial instruments. Refer to
Etrion's MD&A for the three months ended September 30, 2012, for a
reconciliation of the adjusted net income reported during the period.
This press release contains certain "forward-looking information". All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements relating to solar electricity revenue which is
subject to confirmation of both the applicable feed-in-tariff ("FiT") to
which the Company is entitled by the state-owned company Gestore Servizi
Energetici and the applicable spot market price by the local utilities
for electricity sales to the national grid and statements relating to
the Company's growth plans) constitute forward-looking information.
This forward-looking information reflects the current expectations or
beliefs of the Company based on information currently available to the
Company as well as certain assumptions including, without limitation,
confirmation of the applicable FiT and spot market price for electricity
sales. Forward-looking information is subject to a number of
significant risks and uncertainties and other factors that may cause the
actual results of the Company to differ materially from those discussed
in the forward-looking information, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, but are not limited to, the lack of
confirmation or reduction of the applicable FiT and the spot market
price for electricity sales by the designated entities, the risk that
the Company may not be able to identify and/or acquire additional
renewable energy projects on economic terms and uncertainties with
respect to the Company's ability to negotiate PPAs with industrial
Any forward-looking information speaks only as of the date on which it
is made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any forward
-looking information, whether as a result of new information, future
events or results or otherwise. Although the Company believes that the
assumptions inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information due to
the inherent unce