Ormat Technologies Reports Second Quarter 2024 Financial Results
Ormat Technologies (NYSE: ORA) reported strong Q2 2024 financial results, with total revenues increasing 9.3% year-over-year to $213.0 million. The company saw growth across all three operating segments:
- Electricity segment revenues up 7% to $166.2 million
- Product segment revenues up 13.1% to $37.8 million
- Energy Storage segment revenues up 48.1% to $8.9 million
Profitability improved significantly, with operating income up 45% to $35.1 million and adjusted EBITDA up 25% to $126.1 million. Ormat raised its full-year 2024 EBITDA guidance, now expecting $520-$550 million. The company aims to increase its generating portfolio to 2.1-2.3 GW by end of 2026, capitalizing on growing demand for renewable energy solutions.
Ormat Technologies (NYSE: ORA) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con entrate totali in aumento del 9,3% rispetto all'anno precedente, raggiungendo 213,0 milioni di dollari. L'azienda ha registrato crescita in tutti e tre i segmenti operativi:
- Entrate del segmento Elettricità aumentate del 7% a 166,2 milioni di dollari
- Entrate del segmento Prodotti aumentate del 13,1% a 37,8 milioni de dollari
- Entrate del segmento Stoccaggio Energetico aumentate del 48,1% a 8,9 milioni di dollari
La redditività è migliorata in modo significativo, con il reddito operativo aumentato del 45% a 35,1 milioni di dollari e l'EBITDA rettificato aumentato del 25% a 126,1 milioni di dollari. Ormat ha innalzato le previsioni per l'EBITDA dell'intero anno 2024, ora aspettandosi tra 520 e 550 milioni di dollari. L'azienda punta ad aumentare il proprio portafoglio di generazione a 2,1-2,3 GW entro la fine del 2026, capitalizzando sulla crescente domanda di soluzioni energetiche rinnovabili.
Ormat Technologies (NYSE: ORA) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos totales en aumento del 9.3% en comparación con el año anterior, alcanzando 213.0 millones de dólares. La compañía experimentó crecimiento en los tres segmentos operativos:
- Ingresos del segmento Electricidad aumentados en un 7% a 166.2 millones de dólares
- Ingresos del segmento Productos aumentados en un 13.1% a 37.8 millones de dólares
- Ingresos del segmento Almacenamiento de Energía aumentados en un 48.1% a 8.9 millones de dólares
La rentabilidad mejoró de manera significativa, con el ingreso operativo aumentando un 45% a 35.1 millones de dólares y el EBITDA ajustado aumentando un 25% a 126.1 millones de dólares. Ormat elevó su guía de EBITDA para todo el año 2024, esperando ahora entre 520 y 550 millones de dólares. La compañía tiene como objetivo aumentar su cartera de generación a 2.1-2.3 GW para finales de 2026, aprovechando la creciente demanda de soluciones energéticas renovables.
Ormat Technologies (NYSE: ORA)은 2024년 2분기 강력한 재무 결과를 보고했습니다. 총 수익이 전년 대비 9.3% 증가하여 2억 1,300만 달러에 달했습니다. 회사는 세 개의 운영 부문 모두에서 성장을 보았습니다:
- 전기 부문 수익이 7% 증가하여 1억 6,620만 달러
- 제품 부문 수익이 13.1% 증가하여 3,780만 달러
- 에너지 저장 부문 수익이 48.1% 증가하여 890만 달러
수익성이 크게 향상되어 영업 이익이 45% 증가하여 3,510만 달러, 조정 EBITDA가 25% 증가하여 1억 2,610만 달러에 달했습니다. Ormat은 2024년 연간 EBITDA 가이드를 상향 조정하여 이제 5억 2천만에서 5억 5천만 달러를 예상하고 있습니다. 회사는 2026년 말까지 발전 포트폴리오를 2.1-2.3 GW로 증가시키는 것을 목표로 하며, 증가하는 재생 에너지 솔루션에 대한 수요를 활용하고 있습니다.
Ormat Technologies (NYSE: ORA) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024, avec des revenus totaux en hausse de 9,3% par rapport à l'année précédente, atteignant 213,0 millions de dollars. L'entreprise a connu une croissance dans ses trois segments d'activité :
- Revenus du segment Électricité en hausse de 7% à 166,2 millions de dollars
- Revenus du segment Produits en hausse de 13,1% à 37,8 millions de dollars
- Revenus du segment Stockage d'Énergie en hausse de 48,1% à 8,9 millions de dollars
La rentabilité s'est considérablement améliorée, avec un résultat opérationnel en hausse de 45% à 35,1 millions de dollars et un EBITDA ajusté en hausse de 25% à 126,1 millions de dollars. Ormat a relevé ses prévisions d'EBITDA pour l'année 2024, s'attendant désormais à des revenus entre 520 et 550 millions de dollars. L'entreprise vise à augmenter son portefeuille de production à 2,1-2,3 GW d'ici fin 2026, en capitalisant sur la demande croissante pour des solutions d'énergie renouvelable.
Ormat Technologies (NYSE: ORA) berichtete über starke Finanzzahlen für das 2. Quartal 2024, mit einer Gesamteinnahmensteigerung von 9,3% im Jahresvergleich auf 213,0 Millionen Dollar. Das Unternehmen verzeichnete in allen drei Betriebssegmenten Wachstum:
- Die Einnahmen im Stromsegment stiegen um 7% auf 166,2 Millionen Dollar
- Die Einnahmen im Produktsegment stiegen um 13,1% auf 37,8 Millionen Dollar
- Die Einnahmen im Energiespeichersegment stiegen um 48,1% auf 8,9 Millionen Dollar
Die Rentabilität verbesserte sich erheblich, mit einem operativen Gewinn, der um 45% auf 35,1 Millionen Dollar anstieg, und einem bereinigten EBITDA, das um 25% auf 126,1 Millionen Dollar zunahm. Ormat hat die EBITDA-Prognose für das gesamte Jahr 2024 angehoben und erwartet nun 520-550 Millionen Dollar. Das Unternehmen hat sich zum Ziel gesetzt, sein Erzeugungsportfolio bis Ende 2026 auf 2,1-2,3 GW zu erhöhen und nutzt die wachsende Nachfrage nach Lösungen für erneuerbare Energien.
- Total revenues increased 9.3% year-over-year to $213.0 million
- Operating income grew 45% to $35.1 million
- Adjusted EBITDA increased 25% to $126.1 million
- Energy Storage segment revenues up 48.1% to $8.9 million
- Electricity segment gross margin improved from 29.6% to 33.5%
- Product segment gross margin increased from 10.4% to 13.7%
- Raised full-year 2024 EBITDA guidance to $520-$550 million
- Signed 15-year agreement for 80MW/320MWh Shirk Energy Storage facility
- Net income attributable to stockholders decreased 8.1% to $22.2 million
- Diluted EPS decreased 7.5% to $0.37
- Unplanned outage at Dixie Valley power plant impacted Electricity segment revenues
Insights
Ormat Technologies' Q2 2024 results show strong performance across all segments. Total revenues increased by
Key positives include improved margins across all segments and strategic expansion of the generating portfolio. The Energy Storage segment's transformation is particularly noteworthy, with significant revenue growth and margin improvement. However, investors should note the slight decrease in net income and EPS, partly due to write-offs related to decommissioning and exploration activities.
The increased full-year EBITDA guidance range demonstrates management's confidence in the company's outlook. With a strong backlog of
Ormat's Q2 results highlight its strategic positioning in the renewable energy sector. The company's diversified portfolio across geothermal, solar and energy storage is proving advantageous as demand for clean energy solutions grows. The improved performance at the Puna geothermal plant and the successful integration of acquired Enel assets demonstrate Ormat's operational expertise.
The Energy Storage segment's rapid growth (
Ormat's target to increase its generating portfolio to 2.6-2.8 GW by YE 2028 is ambitious but aligns with global trends towards decarbonization. The company's ability to leverage IRA tax benefits for improved project returns could provide a competitive edge in the U.S. market.
Ormat's Q2 performance reflects broader market trends in the renewable energy sector. The strong demand for geothermal and energy storage solutions aligns with global efforts to decarbonize power grids and enhance grid reliability. The company's revenue growth outpaces the overall renewable energy market, suggesting potential market share gains.
The improvement in the Product segment's margins (from
Investor sentiment towards Ormat may be influenced by its ability to execute on its ambitious growth plans while maintaining profitability. The company's focus on long-term contracts and diversification across multiple renewable technologies could be viewed favorably in an environment of increasing policy support for clean energy. However, rising interest rates and potential changes in government incentives remain key factors to watch.
Consistent Improvement Across All Operating Segments Highlights Committement Toward Continued Profitable Growth
HIGHLIGHTS
- TOTAL REVENUES FOR THE SECOND QUARTER INCREASED BY
9.3% YEAR-OVER-YEAR, WITH GROWTH REALIZED ACROSS ALL THREE OPERATING SEGMENTS - INCREASED PROFITABILITY IN ALL SEGMENTS DROVE A
45% INCREASE IN OPERATING INCOME AND A25% INCREASE IN ADJUSTED EBITDA - INCREASE IN FULL YEAR EBITDA GUIDANCE RANGE, DEMONSTRATING STRONG EXECUTION AND CONFIDENCE IN THE COMPANY’S FORWARD OUTLOOK
RENO, Nev., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading renewable energy company, today announced financial results for the second quarter ended June 30, 2024.
KEY FINANCIAL RESULTS
| Q2 2024 | Q2 2023 | Change (%) | H1 2024 | H1 2023 | Change (%) | |
| GAAP Measures | ||||||
| Revenues ($ millions) | ||||||
| Electricity | 166.2 | 155.3 | 357.5 | 325.6 | ||
| Product | 37.8 | 33.5 | 62.7 | 43.5 | ||
| Energy Storage | 8.9 | 6.0 | 17.0 | 10.9 | ||
| Total Revenues | 213.0 | 194.8 | 437.1 | 380.0 | ||
| Gross margin (%) | ||||||
| Electricity | ||||||
| Product | ||||||
| Energy Storage | (0.5)% | |||||
| Gross margin (%) | ||||||
| Operating income ($ millions) | 35.1 | 24.2 | 87.7 | 77.4 | ||
| Net income attributable to the Company’s stockholders | 22.2 | 24.2 | (8.1)% | 60.8 | 53.2 | |
| Diluted EPS ($) | 0.37 | 0.40 | (7.5)% | 1.00 | 0.90 | |
| Non-GAAP Measures1 | ||||||
| Adjusted Net income attributable to the Company’s stockholders | 24.3 | 24.2 | 63.9 | 53.2 | ||
| Adjusted Diluted EPS ($) | 0.40 | 0.40 | 1.05 | 0.90 | ||
| Adjusted EBITDA1 ($ millions) | 126.1 | 100.9 | 267.3 | 224.4 |
____________________________________
1 Reconciliation is set forth below in this release.
“Our strong second quarter results demonstrate Ormat’s track record of translating revenue growth into stronger results across our three-operating segments. This was evidenced by the
“Our Electricity segment continued to capture consistent growth during the quarter, which was largely driven by the addition of the Enel assets that we acquired at the beginning of the year, the continued improved generation performance at our Puna facility, and the contributions from a full quarter of performance at Heber following the recent upgrade.”
Blachar continued, “We are encouraged by the increased demand for renewable energy and zero emissions power generation solutions, and we remain confident with our long-term plans to increase our combined geothermal, energy storage and solar generating portfolio to approximately 2.1 to 2.3 GW by the end of 2026. We believe that we are well-positioned to capitalize on favorable industry tailwinds and support our customers’ needs with our diversified portfolio of geothermal, solar, and energy storage solutions.”
FINANCIAL AND RECENT BUSINESS HIGHLIGHTS
- Net income attributable to the Company’s stockholders for the second quarter was
$22.2 million , compared to$24.2 in the same period last year. Diluted EPS for the second quarter was$0.37 , compared with$0.40 in the prior year period. The net income was impacted by approximately$2.0 million in after tax write-offs related to the decommissioning of OREG 4, Recovered Energy Generation facility (REG), and to an unsuccessful exploration activity. - Adjusted net income attributable to the Company’s stockholders for the second quarter was
$24.3 million compared to$24.2 million last year, and diluted adjusted EPS was$0.40 , similar to the prior year period. In the second quarter 2024, the Company had higher revenues and improved margins across all three segments that was offset by higher interest costs. - Adjusted EBITDA for the second quarter was
$126.1 million , an increase of25.0% compared to 2023. The year-over-year increase in Adjusted EBITDA was driven by higher gross margins across all three business segments, which drove higher operating income. Better margins were mainly driven by the improved operation at our Puna power plant and the contribution of the Heber complex repowering. - Electricity segment revenues increased
7% year-over year. Second quarter revenue growth was primarily driven by the Company’s newly acquired Enel assets, a step up in operating performance and power generation at Puna, and the resumption of Heber 1 operations. The increase was partially offset by an unplanned outage at our Dixie Valley power plant. Gross margin in the segment grew from29.6% in the second quarter 2023 to33.5% in the same period this year, mainly due to improved performance at Puna. - Product segment revenues in the second quarter increased
13.1% compared to last year and gross margin improved from10.4% in the second quarter 2023 to13.7% in the second quarter 2024, supported by higher backlog, higher revenue recognition and increased profitability of our contracts. - Product segment backlog stands at approximately
$165 million as of August 5, 2024. - Energy Storage segment revenues increased
48.1% year-over-year, driven by the operation of an additional 83 MW since the second quarter of 2023 and improved prices from the Company’s Pomona 2 tolling agreement combined with higher merchant prices. The segment’s gross margin grew from1.9% in the second quarter 2023 to5.7% in the same period this year, as the Company benefited from higher profitability from our contracts and incrementally improved pricing in merchant markets mainly in the PJM market.
IN ADDITION, IN THE SECOND QUARTER, THE COMPANY:
- Hosted an Investor Day that highlighted Ormat’s commitment to continued profitable growth in its Electricity Segment and shared its plans to transform the Energy Storage segment into a high-growth unit through strategic organic growth, a strong pipeline, and improved project returns through higher PPA and tolling agreements combined with IRA tax benefits. The Company announced that it is targeting a generating portfolio of 2.6 to 2.8 GW by YE 2028.
- Subsequent to quarter end, the Company signed a 15-year Resource Adequacy Purchase and Sale Agreement with the City of Riverside for the 80MW/320MWh Shirk Energy Storage facility, which includes a guaranteed commercial operation date (COD) of March 1, 2026.
- Commenced commercial operation of the 6 MW Beowawe geothermal power plant upgrade.
2024 GUIDANCE
- Total revenues of between
$875 million and$910 million . - Electricity segment revenues between
$710 million and$720 million . - Product segment revenues of between
$130 million and$145 million . - Energy Storage segment revenues of between
$35 million and$45 million . - Adjusted EBITDA to be between
$520 million and$550 million .- Adjusted EBITDA attributable to minority interest of approximately
$20 million .
- Adjusted EBITDA attributable to minority interest of approximately
The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and six months ended June 30, 2024, and 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 the 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 August 06, 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 Wednesday, August 7, 2024, at 9:00 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 1,420MW with a 1,230MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 190MW 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”, “contemplate” or “targets” 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 23, 2024, 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 Six-Month periods Ended June 30, 2024, and 2023
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| (Dollars in thousands, except per share data) | ||||||||
| Revenues: | ||||||||
| Electricity | 166,226 | 155,324 | 357,479 | 325,634 | ||||
| Product | 37,829 | 33,458 | 62,661 | 43,500 | ||||
| Energy storage | 8,908 | 6,014 | 16,989 | 10,894 | ||||
| Total revenues | 212,963 | 194,796 | 437,129 | 380,028 | ||||
| Cost of revenues: | ||||||||
| Electricity | 110,515 | 109,424 | 227,245 | 204,182 | ||||
| Product | 32,662 | 29,985 | 53,816 | 39,336 | ||||
| Energy storage | 8,400 | 5,897 | 15,872 | 10,951 | ||||
| Total cost of revenues | 151,577 | 145,306 | 296,933 | 254,469 | ||||
| Gross profit | 61,386 | 49,490 | 140,196 | 125,559 | ||||
| Operating expenses: | ||||||||
| Research and development expenses | 1,730 | 2,083 | 3,294 | 3,371 | ||||
| Selling and marketing expenses | 4,167 | 5,369 | 9,293 | 9,317 | ||||
| General and administrative expenses | 18,026 | 17,814 | 37,563 | 35,481 | ||||
| Write-off of long-lived assets | 957 | — | 957 | — | ||||
| Write-off of unsuccessful exploration activities | 1,379 | — | 1,379 | — | ||||
| Operating income | 35,127 | 24,224 | 87,710 | 77,390 | ||||
| Other income (expense): | ||||||||
| Interest income | 2,604 | 4,942 | 4,443 | 6,793 | ||||
| Interest expense, net | (33,716 | ) | (24,393 | ) | (64,684 | ) | (48,024 | ) |
| Derivatives and foreign currency transaction gains (losses) | (332 | ) | (1,272 | ) | (1,914 | ) | (3,209 | ) |
| Income attributable to sale of tax benefits | 15,798 | 14,979 | 33,274 | 27,545 | ||||
| Other non-operating income (expense), net | 74 | 79 | 100 | 139 | ||||
| Income from operations before income tax and equity in earnings (losses) of investees | 19,555 | 18,559 | 58,929 | 60,634 | ||||
| Income tax (provision) benefit | 3,178 | 3,956 | 3,325 | (4,929 | ) | |||
| Equity in earnings (losses) of investees, net | 1,232 | 1,996 | 2,061 | 2,267 | ||||
| Net income | 23,965 | 24,511 | 64,315 | 57,972 | ||||
| Net income attributable to noncontrolling interest | (1,722 | ) | (320 | ) | (3,485 | ) | (4,752 | ) |
| Net income attributable to the Company's stockholders | 22,243 | 24,191 | 60,830 | 53,220 | ||||
| Earnings per share attributable to the Company's stockholders: | ||||||||
| Basic: | 0.37 | 0.40 | 1.01 | 0.91 | ||||
| Diluted: | 0.37 | 0.40 | 1.00 | 0.90 | ||||
| Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: | ||||||||
| Basic | 60,451 | 60,245 | 60,419 | 58,494 | ||||
| Diluted | 60,755 | 60,634 | 60,655 | 58,901 | ||||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
For the Periods Ended June 30, 2024 and December 31, 2023
| June 30, 2024 | December 31, 2023 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 66,262 | 195,808 | |||
| Marketable securities at fair value | — | — | |||
| Restricted cash and cash equivalents | 97,480 | 91,962 | |||
| Receivables: | |||||
| Trade | 147,328 | 208,704 | |||
| Other | 44,568 | 44,530 | |||
| Inventories | 44,647 | 45,037 | |||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 29,719 | 18,367 | |||
| Prepaid expenses and other | 86,991 | 41,595 | |||
| Total current assets | 516,995 | 646,003 | |||
| Investment in unconsolidated companies | 129,664 | 125,439 | |||
| Deposits and other | 48,737 | 44,631 | |||
| Deferred income taxes | 186,194 | 152,570 | |||
| Property, plant and equipment, net | 3,328,676 | 2,998,949 | |||
| Construction-in-process | 799,868 | 814,967 | |||
| Operating leases right of use | 26,192 | 24,057 | |||
| Finance leases right of use | 2,887 | 3,510 | |||
| Intangible assets, net | 316,515 | 307,609 | |||
| Goodwill | 151,074 | 90,544 | |||
| Total assets | 5,506,802 | 5,208,279 | |||
| LIABILITIES AND EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable and accrued expenses | 183,386 | 214,518 | |||
| Short term revolving credit lines with banks (full recourse) | — | 20,000 | |||
| Commercial paper | 99,974 | 99,971 | |||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 16,277 | 18,669 | |||
| Current portion of long-term debt: | |||||
| Limited and non-recourse (primarily related to VIEs): | 67,921 | 57,207 | |||
| Full recourse | 154,246 | 116,864 | |||
| Financing Liability | 3,620 | 5,141 | |||
| Operating lease liabilities | 4,041 | 3,329 | |||
| Finance lease liabilities | 1,267 | 1,313 | |||
| Total current liabilities | 530,732 | 537,012 | |||
| Long-term debt, net of current portion: | |||||
| Limited and non-recourse: | 540,995 | 447,389 | |||
| Full recourse: | 839,253 | 698,187 | |||
| Convertible senior notes | 424,268 | 423,104 | |||
| Financing liability | 219,682 | 220,619 | |||
| Operating lease liabilities | 20,480 | 19,790 | |||
| Finance lease liabilities | 1,684 | 2,238 | |||
| Liability associated with sale of tax benefits | 167,188 | 184,612 | |||
| Deferred income taxes | 78,850 | 66,748 | |||
| Liability for unrecognized tax benefits | 7,520 | 8,673 | |||
| Liabilities for severance pay | 10,009 | 11,844 | |||
| Asset retirement obligation | 125,035 | 114,370 | |||
| Other long-term liabilities | 33,858 | 22,107 | |||
| Total liabilities | 2,999,554 | 2,756,693 | |||
| Commitments and contingencies | |||||
| Redeemable noncontrolling interest | 9,985 | 10,599 | |||
| Equity: | |||||
| The Company's stockholders' equity: | |||||
| Common stock | 61 | 60 | |||
| Additional paid-in capital | 1,624,763 | 1,614,769 | |||
| Treasury stock, at cost | (17,964 | ) | (17,964 | ) | |
| Retained earnings | 766,137 | 719,894 | |||
| Accumulated other comprehensive income (loss) | (1,754 | ) | (1,332 | ) | |
| Total stockholders' equity attributable to Company's stockholders | 2,371,243 | 2,315,427 | |||
| Noncontrolling interest | 126,020 | 125,560 | |||
| Total equity | 2,497,263 | 2,440,987 | |||
| Total liabilities, redeemable noncontrolling interest and equity | 5,506,802 | 5,208,279 | |||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA
For the Three- and Six-Month Periods Ended June 30, 2024, and 2023
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 not designated as hedging instruments; (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.
The following table reconciles net income to EBITDA and Adjusted EBITDA for the three-and-six-month periods ended June 30, 2024, and 2023:
| Three Months Ended June 30, | Six Months ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (Dollars in thousands) | (Dollars in thousands) | ||||||||||
| Net income | 23,965 | 24,511 | (22.3)% | 64,315 | 57,972 | ||||||
| Adjusted for: | |||||||||||
| Interest expense, net (including amortization of deferred financing costs) | 31,112 | 19,451 | 60,241 | 41,231 | |||||||
| Income tax provision (benefit) | (3,178) | (3,956) | (3,325) | 4,929 | |||||||
| Adjustment to investment in an unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen | 3,418 | 4,050 | 6,770 | 7,032 | |||||||
| Depreciation and amortization | 62,683 | 52,939 | 124,359 | 105,335 | |||||||
| EBITDA | 118,000 | 96,995 | 21.7% | 252,360 | 216,499 | 16.6% | |||||
| Mark-to-market gains or losses from accounting for derivative | 466 | (402) | 1,279 | 591 | |||||||
| Stock-based compensation | 5,077 | 4,311 | 9,845 | 7,301 | |||||||
| Allowance for bad debt | 221 | — | 221 | — | |||||||
| Write-off of long-lived assets | 957 | — | 957 | — | |||||||
| Merger and acquisition transaction costs | — | — | 1,299 | — | |||||||
| Write-off of unsuccessful exploration activities | 1,379 | — | 1,379 | — | |||||||
| Adjusted EBITDA | 126,100 | 100,904 | 25% | 267,341 | 224,392 | 19.1% | |||||
ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three and Six-month Periods Ended June 30, 2024, and 2023
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 table reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three and six-month periods ended June 30, 2024 and 2023.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (in millions, except for EPS) | |||||||
| GAAP Net income attributable to the Company's stockholders | 22.2 | 24.2 | 60.8 | 53.2 | |||
| Write-off of long-lived assets | 0.8 | — | 0.8 | — | |||
| Write-off of unsuccessful exploration activities | 1.1 | — | 1.1 | — | |||
| M&A costs | — | — | 1.0 | — | |||
| Allowance for bad debt | 0.2 | — | 0.2 | — | |||
| Adjusted Net income attributable to the Company's stockholders | $24.3 | $24.2 | $63.9 | $53.2 | |||
| GAAP diluted EPS | 0.37 | 0.40 | 1.00 | 0.90 | |||
| Write-off of long-lived assets | 0.01 | — | 0.01 | — | |||
| Write-off of unsuccessful exploration activities | 0.02 | — | 0.02 | — | |||
| M&A costs | - | — | 0.02 | — | |||
| Allowance for bad debt | 0.00 | — | 0.00 | — | |||
| Diluted Adjusted EPS | $0.40 | $0.40 | $1.05 | $0.90 | |||
| 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 |
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