OAK BROOK, IL, April 26 /PRNewswire-FirstCall/ - Primary Energy Recycling Corporation (TSX: PRI), (the "Company") a clean energy company that generates revenue from capturing and recycling waste energy from industrial processes, today announced its financial and operational results for the first quarter ended March 31, 2010.
Highlights for the first quarter:
- Increased revenues by 4.3% for the three months ended March 31, 2010 to $15.3 million versus the same period a year ago, and increased operating income to $1.7 million compared to a $0.4 million in the first quarter of 2009; - Continued to benefit from an ongoing recovery in the steel industry.; - Moved forward on contract renewal discussions with the host at the Company's North Lake project, which comes due in 2011; - Subsequent to quarter end, announced the appointment of Mr. Don Pether, current Chair of the Board of McMaster University and former CEO and Chair of Dofasco Inc., to the Company's Board of Directors. During his tenure at Dofasco, the company earned a reputation as a premier North American steel organization.
"The positive momentum that we saw in the steel industry at the end of the year continued in the first quarter of 2010 and was ultimately reflected in our financials results," said John Prunkl, President and Chief Executive Officer of Primary Energy Recycling. "Steel production, which results in large amounts of wasted heat and energy, is an ideal process to benefit from our energy recycling technology. Looking beyond steel, we see significant opportunity for growth in recycled energy and combined heat and power in other industries. Going forward, we intend to focus on paying down our debt, advancing contract renewal negotiations with our current host clients, and evaluating opportunities to diversify our customer base."
First Quarter Financial Results
The Company reported revenue of $15.3 million in the first quarter of 2010, an increase of $0.6 million or 4.3%, compared with revenue of $14.7 million for the first quarter of 2009. The increase is related to the variable portion of Energy Service revenue. Market conditions in the steel industry improved in the first quarter of 2010 compared to the same period in 2009 and resulted in increased steel production at the Company's site hosts.
Operating and maintenance expense for the first quarter of 2010 was $2.6 million, which was essentially flat compared to the first quarter of 2009. General and administrative expense for the first quarter of 2010 was $2.6 million versus $3.2 million for the same period a year ago, representing a decrease of $0.6 million or 17.8%. The decrease is primarily due to reductions in accrued property taxes of $0.4 million based upon reductions in tax rates.
Operating income for the first quarter of 2010 was $1.7 million compared to $0.4 million for the first quarter of 2009, an improvement of $1.3 million. The improvement is primarily driven by higher revenue and decreased expenses discussed above.
Interest expense for the first quarter of 2010 was $2.8 million compared to $4.6 million for the first quarter of 2009, a decrease of $1.8 million. This decrease is primarily due to the reduced level of debt outstanding offset by increased deferred finance fees during the first quarter of 2010.
Net loss for the first quarter of 2010 was $0.7 million compared to $5.1 million for the first quarter of 2009, an improvement of $4.4 million. The improvement was the result of the net effect of the items referenced above.
At the end of the first quarter, the Company's cash balance, not including the $3.7 million funded debt service reserve, was $23.0 million after making payments totaling $10.2 million that reduced outstanding senior debt balance.
Conference Call and Webcast
Management will host a conference call to discuss the first quarter results on Tuesday, April 27 2010 at 10:00 a.m. (ET). Following management's presentation, there will be a question and answer session. To participate in the conference call, please dial 1.888.231-8191 or 1.647.427-7450.
A digital conference call replay will be available until midnight on May 4, 2010 (ET) by calling (800) 642-1687 or (416) 849-0833. Please enter the pass code 68542491 when instructed. A webcast replay will be available for 90 days by accessing a link through the Investor Information section at www.primaryenergyrecycling.com.
When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining, but not limited, to operating performance, regulatory parameters, and weather and economic conditions and the factors discussed in the Company's public filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances except as required by applicable securities laws.
About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation owns a majority interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly owns and operates four recycled energy projects and a 50 per cent interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 283 megawatts and a combined steam generating capacity of 1.8M lbs/hour. PERH creates value for its customers by capturing and recycling waste energy from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for resale back to its customers. For more information, please see www.primaryenergy.com.
|SOURCE Primary Energy Recycling Corporation|
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