Welcome!

.NET Authors: Pat Romanski, Elizabeth White, ChandraShekar Dattatreya, Trevor Parsons, Peter Silva

News Feed Item

Western Wind Energy Reports Net Earnings of $0.13 per Share for the Third Quarter Ended September 30, 2012

VANCOUVER, November 29, 2012 /PRNewswire/ --

TSX.V Symbol: "WND"

OTCQX Symbol: "WNDEF"

Issued and Outstanding: 69,449,541

Western Wind Energy Corp. (the "Company") reported today, its unaudited condensed interim consolidated financial results for the three and nine months ended September 30, 2012. For complete details of the third quarter Condensed Interim Consolidated Financial Statements and related Management's Discussion and Analysis, please see the Company's filings on SEDAR (http://www.sedar.com) or on EDGAR (http://www.sec.gov).  All amounts herein are reported in U.S. dollars unless otherwise specified.

RECENT DEVELOPMENTS

  • On July 30, 2012, the Company announced that it would be seeking a buyer for the Company and its assets.  On August 10, 2012, the Company announced that it had engaged Rothschild (Canada) Inc. as its lead financial advisor to manage and structure a comprehensive and efficient auction process, with PI Financial Corp. engaged as a co-advisor. On October 24, 2012, the Company announced that the auction process was progressing as planned, with a limited number of bidders having been invited to conduct a second round of very extensive due diligence, as well as the addition of new participants as the proxy battle caused at least 8 weeks of delay in the auction process due to the uncertainty caused by a proxy battle. On November 23, 2012, Brookfield Renewable Energy Partners L.P. ("Brookfield"), announced Brookfield's intention to make an offer to acquire all of the outstanding common shares of the Company for cash consideration of C$2.50 per share (the "Brookfield Offer"). On November 26, 2012, the Company issued an announcement to highlight that some of the initial expressions received from auction participants that are currently conducting due diligence in the second round of the process, would imply a value significantly greater than the Brookfield Offer. There is no guarantee that any of the initial expressions of interest received by the Company will result in a formal offer being made or a binding agreement being entered into at this time.
  • The Company's generating facilities produced operating revenues of $8,353,723 (2011 - $747,281) and $27,641,941 (2011 - $2,305,843) for the three and nine months ended September 30, 2012, respectively.
  • For the three months ended September 30, 2012, net earnings improved significantly to $8,524,018, or $0.13 per share, compared to a net loss of ($1,581,610) (negative $0.03 per share) for the same period in 2011.  For the nine months, net earnings increased to $10,254,631, or $0.16 per share compared to a net loss of ($3,214,675) (negative $0.06 per share) for the same period in 2011.
  • For the three and nine months ended September 30, 2012, adjusted earnings before interest, income taxes, depreciation and amortization, and other expenses or income ("Adjusted EBITDA"[1]) increased to a loss of $(788,828), or a negative $0.01 per share[1],compared to loss of $(1,282,278) (negative $0.02 per share), and increased to $12,121,114, or a positive $0.19 per share,[1] compared to a loss of $(2,842,028) (negative $0.04 per share) the 2011 comparative periods.
  • On July 16, 2012, the Company received $78,334,713 in tax free cash grant under the U.S. Internal Revenue Code Section 1603 in connection with its 120MW Windstar project.  $68,933,897 was used to repay Windstar bridge financing, $5,248,127 was used to increase the debt service reserve account and $4,710,468 was set aside in restricted cash for the ongoing arbitration between the Company and its deferred financing vendor.  The amount awarded was $12,221,994 less than the $90,556,707 included in the Company's application and the Company has subsequently provided further supporting documentation to the Department of Treasury to support and request this shortfall.  Ongoing communication and numerous discussions with the Department of Treasury have been positive to-date.  While the Company is hopeful that an additional amount will be received, the timing and amount are uncertain and therefore the Company has not accrued this shortfall in its financial statements as at September 30, 2012.
  • On October 31, 2012, the Company was in compliance with its Windstar senior secured notes agreement covenants and received its first distribution of $2,307,622.
  • On November 16, 2012, the Company's subsidiary Western Wind Energy US Corporation closed a $25,000,000 corporate loan.  The corporate loan is structured in two parts, with the first draw of $15,000,000 being available immediately for repayment of the Company's existing corporate bridge financing, and is secured by a lien on future Windstar cash distributions and an equity interest in its direct borrowing subsidiaries.  The term of the loan will be for five (5) years and with an interest rate hedge, the annual interest rate will not exceed 11.5% for the term of the loan. The second commitment of $10,000,000 would be available to partially fund the Company's equity contribution and/or the REC promissory note to the Yabucoa solar project and to facilitate financial close of project financing, and will be secured by a lien on future Yabucoa cash distributions and an equity interest in its direct borrowing subsidiaries.  The Yabucoa commitment under the corporate loan agreement expires May 16, 2013 and a commitment fee of 4% per annum is charged on the undrawn amount.  As partial consideration for advancing the loan, the Company issued to the Lender an aggregate of 400,000 share purchase warrants for a five (5) year term and an exercise price of $2.50 per share for a period of five (5) years after the date the Lender's Warrants are issued.  In addition, the Company will grant the Lender a security interest in and to certain of its projects and assets as security for the facility.
  • On November 16, 2012 the Company received $15,000,000 from its first draw on the corporate loan.  These proceeds were used to pay the arrangement fee, transactions costs and to repay the following corporate bridge financing, extinguishing all terms and conditions of the respective agreements; the $778,287 loan was repaid; the $2,220,000 loan was repaid, the $2,764,395 loan was repaid, and a partial payment of $4,373,498 was paid on the $5,070,840 loan.
                                              SELECTED QUARTERLY INFORMATION
 
                                     Three Months Ended              Nine Months Ended
                                         September 30                   September 30
                                  2012              2011        2012              2011
                                    $                 $           $                 $
    Total operating revenues    8,353,723          747,281    27,641,941        2,305,843
    Adjusted EBITDA[1]           (788,828)      (1,282,278)   12,121,114       (2,842,028)
    Net earnings (loss)         8,524,018       (1,581,610)   10,254,631       (3,214,675)
      Adjusted EBITDA per share
            - Basic              $ (0.01)         $ (0.02)      $ 0.19          $ (0.05)
            - Diluted            $ (0.01)         $ (0.02)      $ 0.19          $ (0.05)
      Earnings (loss) per share
            - Basic               $ 0.13          $ (0.03)      $ 0.16          $ (0.06)
            - Diluted             $ 0.13          $ (0.03)      $ 0.16          $ (0.06)
    Weighted average commons shares outstanding
            - Basic            65,745,516       59,850,396    63,519,756       58,180,213
            - Diluted          67,163,980       59,850,396    64,709,149       58,180,213


RESULTS OF OPERATIONS

Operating Revenues

For the three and nine months ended September 30, 2012, operating revenues increased from $747,281 to $8,353,723,  and from $2,305,843 to $27,641,941, compared to operating revenues for the 2011 comparative periods, respectively.  This increase in operating revenues was driven by a 408% increase in energy production to 63,944MWh (2011 - 12,591MWh) and by a 389% increase in energy production to 234,202MWh (2011 - 47,914MWh) for the three and nine months ended September 30, 2012, respectively, due to the additional energy production and sales from the newly operational Windstar and Kingman generating facilities.

Adjusted EBITDA

For the three and nine months ended September 30, 2012, adjusted earnings before interest, income taxes, depreciation and amortization, and other expenses or income ("Adjusted EBITDA"[1]) increased to a loss of $(788,828), or a negative $0.01 per share,[1] compared to a loss of $(1,282,278) (negative $0.01 per share) and increased to $12,121,114, or a positive $0.19 per share,[1] compared to a loss of $(2,842,028) (negative $0.05 per share) the 2011 comparative periods.

Net Earnings (Loss)

For the three and none months ended September 30, 2012, net earnings increased to $8,524,018, or a positive $0.13 per share, compared to a net loss of $(1,581,610), or a loss of $(0.03) per share, and to $10,254,621, or a positive $0.16 per share, compared to a net loss of $(3,214,675), or a loss of $(0.06) per share.

NON-GAAP PERFORMANCE MEASURES

Adjusted EBITDA, and Adjusted EBITDA per share, are non-GAAP performance measures that management uses to assess the amount of cash generated by the Company, and to measure the operating performance of the Company, excluding the effects of interest, income taxes, depreciation and amortization, and other expenses or income.  Management measures performance, excluding these items, as they may be non-cash, unusual in nature, and/or are not factors used by management for evaluating the operating performance of the Company.  Adjusted EBITDA, and Adjusted EBITDA per share, are not recognized measures under GAAP, and therefore, may not be comparable with those presented by other reporting issuers.  Further, Adjusted EBITDA is not intended to be representative of cash flows from operating activities or the results of operations as determined in accordance with GAAP.  However, the Company believes that these measures are important, as they provide management and the reader with additional information about its operating, and cash generating capabilities, and facilitates the comparison of results over different periods.

ABOUT WESTERN WIND ENERGY CORP.

Western Wind Energy is a vertically integrated renewable energy production company that currently owns wind and solar generation facilities with 165MW of rated capacity in production, in the States of California and Arizona.  Western Wind further owns substantial development assets for both solar and wind energy in the U.S. and Canada.  The Company is headquartered in Vancouver, BC and has branch offices in Scottsdale, Arizona and Tehachapi, California.  Western Wind trades on the Toronto Venture Exchange under the symbol "WND", and in the United States on the OTCQX under the symbol "WNDEF".

The Company owns and operates three wind energy generation facilities in California, and one fully integrated combined wind and solar energy generation facility in Arizona.  The three operating wind generation facilities in California are comprised of the 120MW Windstar, 4.5MW Windridge facilities in Tehachapi, and the 30MW Mesa wind generation facility near Palm Springs.  The facility in Arizona is the Company's 10.5MW Kingman integrated solar and wind facility. The Company is further developing wind and solar energy projects in California, Arizona, and Puerto Rico.

ON BEHALF OF THE BOARD OF DIRECTORS

"SIGNED"

Jeffrey J. Ciachurski
President & Chief Executive Officer

Neither the 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.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains certain statements that may be considered "forward-looking statements, such as references to the intended sale of Western Wind Energy Corp. and its assets. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.  The forward-looking statements in this press release include statements regarding the intention of the Company to complete the sale of the Company or its assets.  The forward-looking statements included in this press release are based on reasonable assumptions, including that the Company will be able to successfully identify a prospective buyer, negotiate the terms of sale and satisfy all conditions required to complete the sale. Factors that may cause results to vary from anticipations include the risk that the proxy dispute with Sativr may disrupt and impede the sale process, the risk that the Company may not be able to successfully identify a buyer, negotiate acceptable terms or obtain all applicable government, regulatory and shareholder consents required to complete the sale, that the terms of those consents may not be acceptable to the Company, or, assuming the Company is able to successfully complete the sale, the Company is not able to achieve expected results following such sale.  Although Western Wind Energy Corp. believes the expectations expressed in the forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those contained in forward looking statements.  Forward looking statements are based on the beliefs, estimates and opinions of Western Wind Energy Corp.'s management on the date the statements are made. Western Wind Energy Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

[1] Refer to "Non-GAAP Performance Measures" 

For further information:
Investor Relations Contact:
Lawrence Casse
AlphaEdge
Tel:  +1(416) 992-7227
Email:  [email protected]


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...