Ormat Technologies Reports Fourth Quarter and Year-End 2023 Financial Results
- Ormat Technologies reported strong financial results for the fourth quarter and full year ended December 31, 2023.
- The company's annual diluted EPS and adjusted diluted EPS saw significant increases compared to the prior year.
- Ormat is on track to meet its 2026 generating capacity goals.
- Total revenues for the fourth quarter increased by 17.4% year-over-year, driven by growth in the electricity and product segments.
- Operating income showed a substantial increase for both the fourth quarter and full year compared to 2022.
- Ormat provided a full year 2024 adjusted EBITDA outlook of $515 to $545 million.
- Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the fourth quarter decreased compared to last year.
- Energy Storage segment revenues saw a decrease for the fourth quarter and full year compared to 2022.
- Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the full year 2023 increased, but at a lower rate compared to the previous year.
Insights
An examination of Ormat Technologies' latest financial results reveals a robust performance, particularly in terms of annual diluted EPS and adjusted diluted EPS. The substantial growth in these key metrics, 77.8% and 25.0% respectively, suggests a strong operational year. This is underscored by the company's revenue growth in both electricity and product segments, with a notable 56.7% increase in the latter. These figures are indicative of successful project execution and expansion.
Furthermore, the company's forward-looking statements regarding its 2024 EBITDA outlook and tax benefits from ITC suggest strategic financial planning and a favorable tax position. The anticipated EBITDA increase, coupled with the expected $40 million in tax savings, could signify enhanced profitability and shareholder value in the upcoming year. Stakeholders should closely monitor the company's progress towards its 2026 generating capacity goals, as this could have significant implications for long-term revenue streams and market positioning within the renewable energy sector.
Ormat's performance can be viewed within the broader context of the renewable energy market. The company's growth trajectory is aligned with increasing demand for sustainable electricity. Ormat's strategic focus on expanding its geothermal, solar PV and energy storage portfolio is timely, as these segments are experiencing heightened interest due to global sustainability goals.
The energy storage segment, despite a revenue decrease, remains a critical area for future growth, particularly as energy storage solutions become more vital in managing grid stability with the rise of intermittent renewable sources. The company's strategic acquisitions and PPA agreements highlight its commitment to diversifying and strengthening its renewable energy offerings, which could be pivotal in maintaining competitive advantage and meeting the rising global demand for clean energy solutions.
Ormat's announcement reflects the company's operational excellence and strategic positioning within the renewable energy sector. The significant increase in operating income and net income points to efficient management and successful integration of new projects. The company's focus on increasing generating capacity with an aim of 2.1 to 2.3 GW by 2026 demonstrates a clear roadmap for growth and is indicative of the company's commitment to scaling operations in a rapidly evolving energy landscape.
The approval of the PPA between Puna Geothermal Venture and Hawaiian Electric, along with the acquisition of geothermal and solar assets, show proactive steps towards capitalizing on market opportunities and enhancing energy production capabilities. These developments, along with the 2024 guidance, are likely to have a positive impact on investor sentiment, offering insights into the company's future revenue and profitability potential.
DELIVERED A
COMPANY ON TRACK TO MEET 2026 GENERATING CAPACITY GOALS OF 2.1 TO 2.3 GW
HIGHLIGHTS
- TOTAL REVENUES FOR THE FOURTH QUARTER INCREASED BY 17.4% YEAR-OVER-YEAR DRIVEN BY GROWTH IN BOTH THE ELECTRICITY AND PRODUCT SEGMENTS
- OPERATING INCOME INCREASED BY 70.8% FOR THE FOURTH QUARTER AND 9.0% FOR THE FULL YEAR COMPARED TO 2022
- ORMAT ANNOUNCES FULL YEAR 2024 ADJUSTED EBITDA OUTLOOK OF $515 TO $545 MILLION, WITH ADDITIONAL
$40 MILLION EXPECTED THROUGH REDUCED TAX EXPENSE AS A RESULT OF ITC BENEFITS
RENO, Nev., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (the “Company,” “Ormat,” “we” or “us”), a leading renewable energy company, today announced financial results for the fourth quarter and full year ended December 31, 2023.
KEY FINANCIAL RESULTS
| (Dollars in millions, except per share) | Q4 2023 | Q4 2022 | Change (%) | FY 2023 | FY 2022 | Change (%) | ||||||
| GAAP Measures | ||||||||||||
| Revenues | ||||||||||||
| Electricity | 183.9 | 165.2 | 11.3 | % | 666.8 | 631.7 | 5.5 | % | ||||
| Product | 50.4 | 32.2 | 56.7 | % | 133.8 | 71.4 | 87.3 | % | ||||
| Energy Storage & Management Services | 7.0 | 8.1 | (14.0 | )% | 28.9 | 31.0 | (6.8 | )% | ||||
| Total Revenues | 241.3 | 205.5 | 17.4 | % | 829.4 | 734.1 | 13.0 | % | ||||
| Gross margin (%) | ||||||||||||
| Electricity | 39.5 | % | 43.5 | % | 36.6 | % | 39.8 | % | ||||
| Product | 12.6 | % | 22.8 | % | 13.4 | % | 15.3 | % | ||||
| Energy Storage & Management Services | (8.9 | )% | 11.7 | % | 6.4 | % | 21.0 | % | ||||
| Gross margin (%) | 32.5 | % | 39.0 | % | 31.8 | % | 36.6 | % | ||||
| Operating income | 51.6 | 30.2 | 70.8 | % | 166.6 | 152.8 | 9.0 | % | ||||
| Net income attributable to the Company’s stockholders | 35.7 | 18.0 | 98.0 | % | 124.4 | 65.8 | 88.9 | % | ||||
| Diluted EPS ($) | 0.59 | 0.32 | 84.4 | % | 2.08 | 1.17 | 77.8 | % | ||||
| Non-GAAP Measures 1 | ||||||||||||
| Adjusted Net income attributable to the Company’s stockholders | 40.5 | 41.2 | (1.7 | )% | 121.9 | 92.2 | 32.2 | % | ||||
| Adjusted Diluted EPS ($) | 0.67 | 0.73 | (8.2 | )% | 2.05 | 1.63 | 25.0 | % | ||||
| Adjusted EBITDA1 | 139.0 | 124.7 | 11.5 | % | 481.7 | 435.5 | 10.6 | % | ||||
1 Reconciliation is set forth below in this release
“I am pleased to report that Ormat delivered another quarter of solid results, marking a strong conclusion to a successful year in 2023,” said Doron Blachar, Chief Executive Officer of Ormat. “Our core Electricity segment achieved record quarterly revenues of
“Our annual net income attributable to the Company’s stockholders increased by
“The escalating demand for sustainable electricity continues to support Ormat's multi-year growth trajectory. From the beginning of 2023 and to this point in 2024 we have added 239MW of new capacity through development and acquisition, of which 157MW was added to the Electricity segment, including 100MW of geothermal and solar PV assets acquired in January 2024, and 82MW from five new storage facilities in our Storage segment. This growth helps further advance our efforts towards meeting our 2026 capacity expansion targets, which we believe should help to increase our EBITDA and earnings generation in 2024 and beyond.”
Doron Blachar, continued, “Looking forward, we are on track with our capacity expansions in both the Electricity and the Storage segments, with the potential to reach capacity of between 2.1 GW to 2.3 GW by the end of 2026. We anticipate an increase of
FINANCIAL AND RECENT BUSINESS HIGHLIGHTS
- Net income attributable to the Company’s stockholders for the fourth quarter and for the year 2023 was
$35.7 million and$124.4 million , respectively, an increase of98.0% and88.9% , respectively, compared to last year. Diluted EPS for the fourth quarter and for the year 2023 were$0.59 and$2.08 per share, respectively, an increase of84.4% and77.8% , respectively, compared to last year. - Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the fourth quarter decreased
1.7% and8.2% compared to last year due to higher tax rates during Q4 2023 compared to income tax benefits for the same period last year, in addition to the fact that Electricity Segment gross margin and adjusted EBITDA in the fourth quarter of 2022 included$6.4 million of business interruption income related to Heber 1. - Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the full year 2023 increased
32.2% and25.0% compared to the previous year. - Adjusted EBITDA for the fourth quarter and for the year 2023 were
$139.0 million , and$481.7 million , respectively, an increase of11.5% and10.6% , respectively, compared to 2022. Adjusted EBITDA in the quarter increased mainly due to the recovery of the Heber complex and Puna power plant, the contribution from the new North Valley power plant and the new PTCs associated with our new geothermal assets. - Electricity segment revenues increased
11.3% for the fourth quarter and5.5% for the year compared to 2022, supported in the quarter by contributions from new projects added early in 2023, as well as improved generation at the Heber and Puna power plants. - Product segment revenues increased
56.7% for the fourth quarter and87.3% for the year compared to 2022, supported by higher backlog and the timing of revenue recognition. - Product segment backlog stands at
$152.0 million as of February 21, 2024. - Energy Storage segment revenues decreased
14.0% for the fourth quarter and6.8% for the year compared to 2022, driven mainly by lower merchant rates at PJM and CAISO.
IN ADDITION:
- Received Hawai‘i Public Utilities Commission’s approval of the Power Purchase Agreement (PPA) between Puna Geothermal Venture (PGV) and Hawaiian Electric. The approval follows PGV’s completion and submission of its final environmental impact statement for operations in Puna, Hawai’i.
- Completed the acquisition of contracted operating geothermal and solar assets from Enel Green Power North America, helping advance Ormat’s Electricity segment growth plans and further strengthening the Company’s presence in the U.S. renewable energy sector.
- Signed a 25-year power purchase agreement with Dominica Electricity Services Ltd. (DOMLEC) for the development of a 10MW binary geothermal power plant in the Caribbean country of Dominica.
- Secured a 15-year Energy Storage service agreement with San Diego Community Power (SDCP) for the 20MW/40MWh Pomona 2 Energy Storage System (BESS) located in Los Angeles County, California.
2024 GUIDANCE
- Total revenues of between
$860 million and$910 million . - Electricity segment revenues between
$710 million and$730 million . - Product segment revenues of between
$115 million and$135 million . - Energy Storage revenues of between
$35 million and$45 million . - Adjusted EBITDA to be between
$515 million and$545 million .- Adjusted EBITDA attributable to minority interest of approximately
$18 million .
- Adjusted EBITDA attributable to minority interest of approximately
The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the quarter and year ended December 31, 2023. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.
DIVIDEND
On February 21, 2024, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of
CONFERENCE CALL DETAILS
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, February 22, 2024, at 10:00 a.m. ET.
Participants within the United States and Canada, please dial 1-888-770-2286, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. Access code for the call is 9122486. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a webcast live on the Investor Relations section of the Company's website.
A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 9122486. The webcast will also be archived on the Investor Relations section of the Company's website.
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 robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. 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. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,385 MW with a 1,215 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 170 MW energy storage portfolio that is located in the U.S.
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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023, and in Ormat’s subsequent quarterly reports on Form 10-Q that are filed from time to time with the SEC.
These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Statement of Operations
For the Three-and Twelve-Month periods Ended December 31, 2023, and 2022
| Three Months Ended December 31, | Twelve Months Ended December 31 | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| (Dollars in thousands, except per share data) | ||||||||
| Revenues: | ||||||||
| Electricity | 183,921 | 165,187 | 666,767 | 631,727 | ||||
| Product | 50,432 | 32,177 | 133,763 | 71,414 | ||||
| Energy storage | 6,987 | 8,122 | 28,894 | 31,018 | ||||
| Total revenues | 241,340 | 205,486 | 829,424 | 734,159 | ||||
| Cost of revenues: | ||||||||
| Electricity | 111,201 | 93,270 | 422,549 | 380,361 | ||||
| Product | 44,073 | 24,835 | 115,802 | 60,479 | ||||
| Energy storage | 7,610 | 7,171 | 27,055 | 24,495 | ||||
| Total cost of revenues | 162,884 | 125,276 | 565,406 | 465,335 | ||||
| Gross profit | 78,456 | 80,210 | 264,018 | 268,824 | ||||
| Operating expenses: | ||||||||
| Research and development expenses | 2,452 | 1,388 | 7,215 | 5,078 | ||||
| Selling and marketing expenses | 4,307 | 3,783 | 18,306 | 16,193 | ||||
| General and administrative expenses | 18,654 | 14,119 | 68,179 | 61,274 | ||||
| Impairment charge | — | 30,695 | — | 32,648 | ||||
| Write-off of unsuccessful exploration activities | 1,415 | — | 3,733 | 828 | ||||
| Operating income | 51,628 | 30,224 | 166,585 | 152,803 | ||||
| Other income (expense): | ||||||||
| Interest income | 2,363 | 1,237 | 11,983 | 3,417 | ||||
| Interest expense, net | (25,803 | ) | (23,841 | ) | (98,881 | ) | (87,743 | ) |
| Derivatives and foreign currency transaction gains (losses) | 712 | (2,013 | ) | (3,278 | ) | (6,044 | ) | |
| Income attributable to sale of tax benefits | 18,676 | 7,540 | 61,157 | 33,885 | ||||
| Other non-operating income (expense), net | 1,272 | (197 | ) | 1,519 | (709 | ) | ||
| Income from operations before income tax and equity in earnings (losses) of investees | 48,848 | 12,950 | 139,085 | 95,609 | ||||
| Income tax (provision) benefit | (8,188 | ) | 8,778 | (5,983 | ) | (14,742 | ) | |
| Equity in earnings (losses) of investees, net | (1,827 | ) | (1,498 | ) | 35 | (3,072 | ) | |
| Net income | 38,833 | 20,230 | 133,137 | 77,795 | ||||
| Net income attributable to noncontrolling interest | (3,107 | ) | (2,190 | ) | (8,738 | ) | (11,954 | ) |
| Net income attributable to the Company's stockholders | 35,726 | 18,040 | 124,399 | 65,841 | ||||
| Earnings per share attributable to the Company's stockholders: | ||||||||
| Basic: | 0.59 | 0.32 | 2.09 | 1.17 | ||||
| Diluted: | 0.59 | 0.32 | 2.08 | 1.17 | ||||
| Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: | ||||||||
| Basic | 60,367 | 56,077 | 59,424 | 56,063 | ||||
| Diluted | 60,505 | 56,501 | 59,762 | 56,503 | ||||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
For the Periods Ended December 31, 2023, and 2022
| December 31, 2023 | December 31, 2022 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | 195,808 | 95,872 | ||
| Marketable securities at fair value | — | — | ||
| Restricted cash and cash equivalents | 91,962 | 130,804 | ||
| Receivables: | ||||
| Trade | 208,704 | 128,818 | ||
| Other | 44,530 | 32,415 | ||
| Inventories | 45,037 | 22,832 | ||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 18,367 | 16,405 | ||
| Prepaid expenses and other | 41,595 | 29,571 | ||
| Total current assets | 646,003 | 456,717 | ||
| Investment in unconsolidated companies | 125,439 | 115,693 | ||
| Deposits and other | 44,631 | 39,762 | ||
| Deferred income taxes | 152,570 | 161,365 | ||
| Property, plant and equipment, net | 2,998,949 | 2,493,457 | ||
| Construction-in-process | 814,967 | 893,198 | ||
| Operating leases right of use | 24,057 | 23,411 | ||
| Finance leases right of use | 3,510 | 3,806 | ||
| Intangible assets, net | 307,609 | 333,845 | ||
| Goodwill | 90,544 | 90,325 | ||
| Total assets | 5,208,279 | 4,611,579 | ||
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | 214,518 | 149,423 | ||
| Short term revolving credit lines with banks (full recourse) | 20,000 | — | ||
| Commercial paper | 99,971 | — | ||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 18,669 | 8,785 | ||
| Current portion of long-term debt: | ||||
| Limited and non-recourse (primarily related to VIEs): | 57,207 | 64,044 | ||
| Full recourse | 116,864 | 101,460 | ||
| Financing Liability | 5,141 | 16,270 | ||
| Operating lease liabilities | 3,329 | 2,347 | ||
| Finance lease liabilities | 1,313 | 1,581 | ||
| Total current liabilities | 537,012 | 343,910 | ||
| Long-term debt, net of current portion: | ||||
| Limited and non-recourse: | 447,389 | 521,885 | ||
| Full recourse: | 698,187 | 676,512 | ||
| Convertible senior notes | 423,104 | 420,805 | ||
| Financing liability | 220,619 | 225,759 | ||
| Operating lease liabilities | 19,790 | 19,788 | ||
| Finance lease liabilities | 2,238 | 2,262 | ||
| Liability associated with sale of tax benefits | 184,612 | 166,259 | ||
| Deferred income taxes | 66,748 | 83,465 | ||
| Liability for unrecognized tax benefits | 8,673 | 6,559 | ||
| Liabilities for severance pay | 11,844 | 12,833 | ||
| Asset retirement obligation | 114,370 | 97,660 | ||
| Other long-term liabilities | 22,107 | 3,317 | ||
| Total liabilities | 2,756,693 | 2,581,014 | ||
| Commitments and contingencies | ||||
| Redeemable noncontrolling interest | 10,599 | 9,590 | ||
| Equity: | ||||
| The Company's stockholders' equity: | ||||
| Common stock | 60 | 56 | ||
| Additional paid-in capital | 1,614,769 | 1,259,072 | ||
| Treasury stock, at cost | (17,964 | ) | -17,964 | |
| Retained earnings | 719,894 | 623,907 | ||
| Accumulated other comprehensive income (loss) | (1,332 | ) | 2,500 | |
| Total stockholders' equity attributable to Company's stockholders | 2,315,427 | 1,867,571 | ||
| Noncontrolling interest | 125,560 | 153,404 | ||
| Total equity | 2,440,987 | 2,020,975 | ||
| Total liabilities, redeemable noncontrolling interest and equity | 5,208,279 | 4,611,579 | ||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA
For the three and twelve month period ended December 31, 2023 and 2022
We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives; (ii) stock-based compensation; (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, 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 U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.
Starting in the fourth quarter of 2022, we include accretion expenses related to asset retirement obligation in the adjustments to net income when calculating EBITDA and adjusted EBITDA. The presentation of EBITDA and adjusted EBITDA includes accretion expenses for the three and twelve months ended December 31, 2023; however, the prior year has not been recast to include accretion expenses as the amounts were immaterial.
The following table reconciles net income to EBITDA and Adjusted EBITDA for the three- and twelve-month period ended December 31, 2023 and 2022:
| Three Months Ended December 31, | Year ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| (Dollars in thousands) | (Dollars in thousands) | ||||||||||
| Net income | 38,833 | 20,230 | 133,137 | 77,795 | |||||||
| Adjusted for: | |||||||||||
| Interest expense, net (including amortization of deferred financing costs) | 23,440 | 22,604 | 86,898 | 84,326 | |||||||
| Income tax provision (benefit) | 8,188 | (8,778 | ) | 5,983 | 14,742 | ||||||
| Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla | 5,243 | 3,758 | 16,069 | 13,199 | |||||||
| Depreciation and amortization | 59,331 | 55,637 | 221,415 | 198,603 | |||||||
| EBITDA | 135,035 | 93,451 | 463,502 | 388,665 | |||||||
| Mark-to-market on derivative instruments | (2,490 | ) | (1,064 | ) | (2,206 | ) | 1,613 | ||||
| Stock-based compensation | 4,243 | 3,017 | 15,478 | 11,646 | |||||||
| Make-whole premium related to long-term debt prepayment | — | — | — | 1,102 | |||||||
| Reversal of a contingent liability related to a business combination transaction | — | (1,829 | ) | — | (1,829 | ) | |||||
| Impairment of long-lived assets | — | 30,693 | — | 32,648 | |||||||
| Reversal of a contingent liability related to a business combination transaction | — | — | — | 115 | |||||||
| Merger and acquisition transaction costs | 816 | 427 | 1,234 | 675 | |||||||
| Write-off of unsuccessful exploration activities | 1,415 | — | 3,733 | 828 | |||||||
| Adjusted EBITDA | 139,019 | 124,695 | 481,741 | 435,463 | |||||||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three and twelve-month periods ended December 31, 2023, and 2022
Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.
The following tables reconcile Net income attributable to the Company's stockholders and Adjusted EPS for the three and twelve-month periods ended December 31, 2023 and 2022.
| Three Months Ended December 31, | Year Ended December 31, | |||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||
| GAAP Net income attributable to the Company's stockholders | 35.7 | 18.0 | 124.4 | 65.8 | ||||||
| Impact of changes in the Finance Law in Kenya | 2.0 | — | (7.4 | ) | — | |||||
| Impairment of long-lived assets | — | 24.3 | — | 25.8 | ||||||
| Tax asset write-off in Sarulla, our unconsolidated company | 1.0 | — | 1.0 | — | ||||||
| Write-off of unsuccessful exploration activities | 1.1 | — | 2.9 | 0.7 | ||||||
| M&A costs | 0.6 | 0.3 | 1.0 | 0.5 | ||||||
| Reversal of earn-out | — | (1.4 | ) | — | (1.4 | ) | ||||
| Make-whole premium related to repayment of long-term debt | — | — | — | 0.8 | ||||||
| Adjusted Net income attributable to the Company's stockholders | 40.5 | 41.2 | 121.9 | 92.2 | ||||||
| GAAP diluted EPS | 0.59 | 0.32 | 2.08 | 1.17 | ||||||
| Impact of changes in the Finance Law in Kenya | 0.03 | — | (0.12 | ) | — | |||||
| Impairment of long-lived assets | — | 0.43 | — | 0.46 | ||||||
| Tax asset write-off in Sarulla, our unconsolidated company | 0.02 | — | 0.02 | — | ||||||
| Write-off of unsuccessful exploration activities | 0.02 | — | 0.05 | 0.01 | ||||||
| M&A costs | 0.01 | 0.01 | 0.02 | 0.01 | ||||||
| Reversal of earn-out | — | (0.03 | ) | — | (0.03 | ) | ||||
| Make-whole premium related to repayment of long-term debt | — | — | — | 0.01 | ||||||
| Diluted Adjusted EPS ($) | 0.67 | 0.73 | 2.05 | 1.63 | ||||||
| Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com | Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com |
FAQ
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What was the percentage increase in total revenues for the fourth quarter compared to the previous year?
What financial results did Ormat Technologies announce for the fourth quarter and full year ended December 31, 2023?
What was the change in operating income for the fourth quarter compared to 2022?
