TORONTO, Nov. 22, 2021 (GLOBE NEWSWIRE) -- Jade Power Trust ("Jade Power" or the "Trust") (TSXV: JPWR.UN) is pleased to report its third quarter 2021 financial results. All amounts are expressed in Canadian Dollars unless otherwise noted.
Highlights1
- Energy generation of 30,516 MWh for the third quarter of 2021 compared to 34,713 MWh for the third quarter of 2020. Energy generation of 109,898 MWh for the nine months ended September 30, 2021, compared to 123,169 MWh with the comparable period in 2020. Energy generation for the third quarter and for the nine months ended September 30, 2021 was lower than the prior year's comparable periods primarily due to less favorable wind levels.
- Revenue of $4.3 million for the third quarter of 2021, compared to $4.5 million for the third quarter of 2020. Revenue of $13.8 million for the nine months ended September 30, 2021, compared to $14.8 million for the same period in 2020. The decrease in revenue was primarily a result of less energy generation, which was partially offset by an increase in income from Green Certificates.
- Net income of $1.6 million, or $0.07 per trust unit (each, a “Unit”), for the third quarter of 2021, compared to a net income of $0.9 million, or $0.04 per Unit, for the third quarter of 2020. Net income of $4.5 million, or $0.20 per Unit, for the nine months ended September 30, 2021, compared to $2.9 million, or $0.12 per Unit, for the same period in 2020. Net income for the quarter was impacted by a one-time gain of $0.7 million on the settlement of insurance claims relating to the repairs of a damaged wind turbine.
- Adjusted EBITDA of $2.3 million2, or $0.10 per Unit, for the third quarter compared to $2.3 million, or $0.10 per Unit, for the comparable quarter in 2020. Adjusted EBITDA of $7.6 million, or $0.33 per Unit, for the nine months ended September 30, 2021, compared to $8.4 million, or $0.36 per Unit, for the nine months ended September 30, 2020. (See reconciliation of adjusted EBITDA under “Non-IFRS Measures”)
- Operating cash flows of $2.6 million, or $0.11 per Unit, after net changes in working capital for the third quarter of 2021 compared to $0.8 million, or $0.03 per Unit, for the third quarter of 2020. Operating cash flows of $7.0 million, or $0.30 per Unit, after changes in working capital for the nine months ended September 30, 2021, compared to $4.4 million, or $0.19 per Unit, for the nine months ended September 30, 2020. (See reconciliation of operating cash flows after net changes in working capital under “Non-IFRS Measures”)
- In September 2021, the Trust completed a consolidation of all of its issued and outstanding Units on the basis of one (1) post-consolidation Unit for every ten (10) pre-consolidation Units, resulting in a reduction in the issued and outstanding Units from 231,216,256 Units to 23,121,625 Units, and launched a normal course issuer bid (“NCIB”) pursuant to which the Trust may purchase for cancellation, from time to time, up to a maximum of 5% of the outstanding Units of the Trust over a 12-month period from September 17, 2021 until September 16, 2022. There were no purchases under the NCIB during the third quarter of 2021.
J. Colter Eadie, Chief Executive Officer of Jade Power, commented,
"We had a positive third quarter continuing to generate positive free cash flow from our assets despite less windy conditions impacting our energy generation. Performance underpinned by the strength of our operating model and infrastructure continued to be in line with targets. We also successfully completed a Unit consolidation and launched a Unit buyback program which we believe is an attractive use of surplus funds as we believe that at certain times the market price of the Units may not fully reflect their value. We are focused on ways to improve value to our Unitholders.”
For further information, please contact:
| Ravi Sood Chairman +1 647-987-7663 rsood@jadepower.com | J. Colter Eadie Chief Executive Officer +40 736-372-724 jceadie@jadepower.com | Betty Soares Chief Financial Officer +1 416-803-6760 bsoares@jadepower.com |
About Jade Power
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Jade Power's issuer profile at www.sedar.com.
Forward-Looking Statements
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements are founded on the basis of expectations and assumptions made by the Trust. Details of the risk factors relating to Jade Power and its business are discussed under the heading "Business Risks and Uncertainties" in the Trust's annual Management's Discussion & Analysis for the year ended December 31, 2020, a copy of which is available on Jade Power's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Jade Power expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
NON-IFRS MEASURES
The Trust has included certain non-IFRS measures to supplement its consolidated financial statements, which are presented in accordance with IFRS:
The following is a reconciliation of adjusted EBITDA and adjusted EBITDA per Unit:
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net income for the period from continuing operations | $ | 1,647,261 | $ | 882,379 | $ | 4,520,600 | $ | 2,853,401 | ||||
| Add-back: | ||||||||||||
| Depreciation | 882,176 | 963,945 | 2,770,572 | 2,838,554 | ||||||||
| One-time business expenses | - | 50,821 | - | 440,980 | ||||||||
| Financing costs | 313,809 | 382,905 | 910,116 | 2,341,541 | ||||||||
| Other gains | (554,950 | ) | - | (554,950 | ) | - | ||||||
| Income tax expense | - | 35,677 | - | (54,450 | ) | |||||||
| Adjusted EBITDA from continuing operations | $ | 2,288,296 | $ | 2,315,727 | $ | 7,646,338 | $ | 8,420,026 | ||||
| Adjusted EBITDA per Unit from continuing operations | $ | 0.10 | $ | 0.10 | $ | 0.33 | $ | 0.36 | ||||
The following is a reconciliation of operating cash flow after changes in net working capital per unit:
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net used in operating activities from continuing operations | $ | 2,592,383 | $ | 758,909 | $ | 7,043,598 | $ | 4,440,113 | ||||
| Weighted average number of Units | 23,121,626 | 23,121,626 | 23,121,626 | 23,121,626 | ||||||||
| Operating cash flow from continuing operations per Unit | $ | 0.11 | $ | 0.03 | $ | 0.30 | $ | 0.19 | ||||
The Trust believes that these non-IFRS measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Trust. Non-IFRS financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other entities. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-IFRS and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
46647443.3
1 All per Unit amounts for the comparative periods have been restated to reflect the 10:1 Unit consolidation effective September 23, 2021
2 Includes foreign exchange gains (losses)
