Revolve Reports Fiscal Year 2023 Financial Results in Line with Expectations
- Total revenues for FY2023 were US$1,109,374, compared to no revenue in the previous year.
- Renewable energy generation for FY2023 was 1,618,456kWh.
- Gross profit margin for FY2023 was 90%.
- The company acquired WindRiver Power Corporation, adding 96.63MW of net operational and development capacity to its portfolio.
- None.
VANCOUVER, BC / ACCESSWIRE / October 31, 2023 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company") a North American owner, operator and developer of renewable energy projects, reported its financial results for the year ended June 30, 2023 ("FY2023"). All amounts reported are in US dollars.
FY2023 marked a significant transition for the Company as it began the implementation of its strategy to move to an owner and operator of renewable energy projects incorporating a focus on building long term recurring revenue and cashflow for the business.
During FY2023 the Company completed a number of material transactions including: (i) the acquisition of Centrica Business Solutions Mexico S.A. de C.V. and its 2.85MW portfolio of operating distribution generation assets and a further 3MW distribution generation asset that is under construction, (ii) the completion of the construction and commissioning of a 3.2MWh battery storage system in Cancun, Mexico and (iii) the successful sale of 1,250MW of US utility-scale development assets to ENGIE.
Key FY 2023 business and financial highlights:
- Total revenues of US
$1,109,374 for the 12-month period ending June 30, 2023, consisting of electricity generation revenue from our operational Distributed Generation (or ‘DG") portfolio and receipt of the initial proceeds from the sale of the development rights to the Bouse and Parker Solar & Storage projects to ENGIE. The Company recorded no revenue for the comparable 12-month period financial period to June 30, 2022. - Renewable energy generation for the 12-month period ending June 30, 2023 was 1,618,456kWh. Extensions to various power purchase agreements (or "PPAs") agreed with existing customers increasing the average contract length of PPAs remaining to just under 9 years.
- Strong gross profit margin trend continues driven by low operating costs associated with rooftop solar DG projects and contribution from Utility Scale project sale proceeds. Gross margins for the 12-month period ending June 30, 2023 were
90% . - DG assets under construction at the year ended June 30, 2023, consist of a 3MW CHP project. The Company announced the successful commissioning of a 3.2MWh battery storage project in May 2023, which is now operational and generating revenue.
- The Company continues to increase its DG project pipeline, which currently stands at c.150MW as at the date of this release. This increase is the result of a number of business development initiatives undertaken since the beginning of the year, which have begun to generate new project opportunities. The Company continues to remain focused on converting this pipeline into signed power purchase agreements and has signed a number of new letters of intent for three new distribution generation projects with a combined capacity of 1.9MW.
- Utility scale projects under development stand at 2,838MW as at the date of this release, after taking into effect (i) the sale of 1,250MW of US solar and storage projects to ENGIE on January 11, 2023 (https://revolve-renewablepower.com/revolve-announces-sale-of-1250mw-of-utility-scale-solar-and-storage-projects) and (ii) the addition of 480MW of new greenfield development projects in the US during the period.
- Net Loss for the year ending June 30, 2023 was (US
$2,342,561) compared with a Net Loss of (US$6,456,046) for the year ending June 30, 2022. - Cash on balance sheet as at June 30, 2023 was US
$611,922 , following receipt of the US$2m upfront payment from ENGIE from the sale of the Bouse and Parker solar & storage projects. This does not include a further US$874,000 held as interconnection and security projects for a number of the Company's utility scale development projects.
Material Subsequent Events occurring after June 30, 2023
- On July 12, 2023, the Company announced the completion of the interconnection milestone related to the 250MW Parker Solar and Storage Project (sold to ENGIE in January 2023). This resulted in the Company receiving a further milestone payment of US
$850,000 during August 2023. The Company also realized revenue of US$240,000 with respect to this Project which was moved from deferred revenue. - On September 11, 2023, the Company announced a development update in relation to its 80MWh Vernal Battery Storage project in Vernal, Utah whereby the Company had completed the last phase of the interconnection process and indicated that it expected to sign an interconnection agreement for the project before the year end.
- On October 4, 2023, the Company announced the proposed acquisition of WindRiver Power Corporation, a Canadian renewable energy operator and developer. This proposed acquisition would add 96.63MW of net operational and development capacity to the Company's portfolio. All the projects in WindRiver are in located Canada.
Steve Dalton, CEO of Revolve commented: "Our financial results for FY2023 provide an early indicator to shareholders on our broader strategy towards building a North American focused renewable independent power producer. We began the financial year with the acquisition of the Centrica DG portfolio in Mexico adding our first portfolio of long-term operating and revenue generating assets. The Company then completed our first significant sale of development assets in the US to ENGIE in January 2023, which has already yield US2.85m in revenues and with the potential to generate a further US
The Company continues to reiterate its previous financial guidance for FY2024 as announced on September 5, 2023 (https://revolve-renewablepower.com/revolve-announces-forward-guidance-for-fy2023-financial-results-and-a-fy2024-financial-forecasts/). The Company is projecting revenue to increase to US
Full financial results and Management's Discussion and Analysis are posted on SEDAR (www.sedar.com) and well as posted on the company's website at the link below https://revolve-renewablepower.com/financials/#finan
About Revolve
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of approx. 2,838MW under development. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. Revolve Renewable Business Solutions currently has an operating portfolio of 6MW with an additional 3MW under construction phase and 156MW under development.
Revolve has an accomplished management team with a demonstrated track record of taking projects from "greenfield" through to "ready to build" (or "RTB") status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
For further information contact:
Steve Dalton, CEO
IR@revolve-renewablepower.com
Or
Sunita Prasad
VP, Corporate Development & Investor Relations
Phone:+1778-885-5550
IR@revolve-renewablepower.com
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures including Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"). Non-IFRS measures and industry metrics do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. The term EBITDA consists of net loss or gain and excludes interest, taxes, depreciation and amortization. The most directly comparable measure to EBITDA calculated in accordance with IFRS is net gain or net loss. The term EBITDA margin consists of the percentage of net loss or gain and excludes interest, taxes, depreciation and amortization. These measures, have limitations, and are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our filings on SEDAR+ at sedarplus.ca and posted on our website.
Financial Projections
The Company's financial projections are inherently speculative and may prove to be inaccurate. Any financial projections provided in this press release have been prepared in good faith based upon the estimates and assumptions considered reasonable by management. However, projections are no more than estimates of possible events and should not be relied upon to predict the results that the Company may attain. Future oriented financial information in this press release includes statements with respect to (i) revenues and EBITDA for FY2023; and (ii) that the Company's revenue will increase to US
Revolve does not provide reconciliations for forward-looking non-GAAP financial measures as Revolve is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various events that have not yet occurred, are out of Revolve's control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, Revolve is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Forward Looking Information
The forward-looking statements contained in this news release constitute ‘‘forward-looking information'' within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and ‘‘forward-looking statements'' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, ‘‘forward-looking statements"). The words "will", "expects", "estimates", "projections", "forecast", "intends", "anticipates", "believes", "targets" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include statements with respect to (i) statements with respect to the business plans of the Company, including it's goal of developing 5,000MW of utility-scale projects in the US and Mexico and growing its portfolio of revenue-generating DG (distributed generation) assets; (ii) the Company's intention to distribute it's its FY2023 financial statements along with supplementary information providing an update on the business on October 30, 2023 before the markets open at 8am Eastern Time; and (iii) that increases to the Company's revenue and EBITDA for the 2024 financial year will be driven by the Company's existing operational distribution generation portfolio as well as further milestone payments from utility scale projects previously sold to 3rd parties. This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Material factors underlying forward-looking information and management's expectations include: the receipt of applicable regulatory approvals; the absence of material adverse regulatory decisions being received and the expectation of regulatory stability; the absence of any material equipment breakdown or failure; availability of financing on commercially reasonable terms and the stability of credit ratings of the Company and its subsidiaries; the absence of unexpected material liabilities or uninsured losses; the continued availability of commodity supplies and stability of commodity prices; the absence of interest rate increases or significant currency exchange rate fluctuations; the absence of significant operational, financial or supply chain disruptions or liability, including relating to import controls and tariffs; the continued ability to maintain systems and facilities to ensure their continued performance; the absence of a severe and prolonged downturn in general economic, credit, social or market conditions; the successful and timely development and construction of new projects; the absence of capital project or financing cost overruns; sufficient liquidity and capital resources; the continuation of long term weather patterns and trends; the absence of significant counterparty defaults; the continued competitiveness of electricity pricing when compared with alternative sources of energy; the realization of the anticipated benefits of the Company's acquisitions and joint ventures; the absence of a change in applicable laws, political conditions, public policies and directions by governments, materially negatively affecting the Company; the ability to obtain and maintain licenses and permits; maintenance of adequate insurance coverage; the absence of material fluctuations in market energy prices; the absence of material disputes with taxation authorities or changes to applicable tax laws; continued maintenance of information technology infrastructure and the absence of a material breach of cybersecurity; the successful implementation of new information technology systems and infrastructure; favourable relations with external stakeholders; our ability to retain key personnel; our ability to maintain and expand distribution capabilities; and our ability to continue investing in infrastructure to support our growth.
Such uncertainties and risks may include, among others, market conditions, delays in obtaining or failure to obtain required regulatory approvals in a timely fashion, or at all; the availability of financing, fluctuating prices, the possibility of project cost overruns, mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and unanticipated costs and expenses, variations in the cost of energy or materials or supplies or environmental impacts on operations, disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR+ at sedarplus.ca. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Such statements and information reflect the current view of the Company. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Revolve Renewable Power Corp.
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