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Run of River Power Reports Results For First Quarter 2009

^{Published on 2009-05-27 06:39:34, Last Modified on 2009-05-27 06:41:13 - Market Wire}
 

 VANCOUVER, May 27, 2009 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Corporation") (TSX-V: ROR) today announced financial and operating results for the first quarter ended March 31, 2009. The Management's Discussion and Analysis, consolidated financial statements and accompanying notes will be filed to SEDAR and posted on ROR Power's website[ www.runofriverpower.com ]. All figures reported herein are Canadian dollars unless otherwise stated. Highlights - The outcome of the May 12 provincial election in British Columbia provides political certainty for the Corporation's run of river and biomass renewable energy development projects. - Operating results at the Brandywine Creek facility were down compared to the first quarter of last year due to reduced water flows from delayed snowpack melt and lower annual rainfall. With the completion of scheduled maintenance the facility resumed normal operations. "We are pleased the recent election result in British Columbia removed the uncertainty surrounding the future of independent power producers and clean energy in the province," said Jako Krushnisky, President and CEO. "IPPs will continue to be called upon to produce green energy as part of the province's pursuit of energy self sufficiency. We look forward to continued dialogue with BC Hydro about our Upper Pitt and Mamquam Power Projects, which together represent nearly 200 MW of capacity, that have been submitted to the Clean Power Call. ROR Power also continues to engage with First Nations in whose traditional territories our run of river and biomass projects are situated. Our open and forthright negotiations have been positive and we expect to announce several milestone agreements over the next several months." Financial Summary ------------------------------------------------------------------------- (All financial amounts Three Months Ended in Canadian dollars) March 31 2009 2008 ------------------------------------------------------------------------- Electricity Sales 85,546 109,197 EBITDA(1) (395,288) (504,222) Net loss (745,945) (767,716) Basic and diluted loss per share (0.01) (0.01) Cash flow from (used in) operations (470,840) (501,540) Total assets 31,455,032 33,243,461 Generation (MWh) 1,471 1,888 ------------------------------------------------------------------------- (1) EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under Canadian Generally Accepted Accounting Principles ("GAAP") and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures section of the MD&A for an explanation and reconciliation. Operating Results For the quarter ended March 31, 2009, electricity generation decreased 22% to 1,471 MWh, resulting in a similar drop in electricity sales to $85,546. EBITDA in Q1 2009 of ($395,288) was a $108,934 improvement from the same period in 2008. The Corporation recorded a net loss for the first quarter of 2009 of $745,945 compared to $767,716 for the same period in 2008. Funds used in operations were $470,840 for the first quarter of 2009 compared to $501,540 for the same period of 2008. Basic and diluted loss per share in Q1 2009 was $0.01, unchanged from the same period in 2008. The reduction in generation and resultant revenues is attributable to the Brandywine Creek facility, which is subject to weather-related factors and seasonality in which the first quarter is historically the lowest for the year. In the first quarter of 2009, generation was affected by slower than normal snowpack melt and reduced rainfall compared to last year. Offsetting this revenue reduction was lower general and administrative expenses, namely legal expenditures and stock based compensation. Non-GAAP Measures The Corporation reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars. Forward-Looking Statements Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. About Run Of River Power Inc. ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects in BC. The Corporation operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC, which generates cash flow under a long-term 20 year contract with BC Hydro. ROR Power is well positioned for profitable growth from generating green power and its dominant position in the sea-to-sky corridor in pursuit of high-quality, power generation initiatives. Its total development potential in excess of 740 MW is addressing the increasing demand for clean, sustainable power and energy self sufficiency. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. %SEDAR: 00013735E 

For further information: Jako Krushnisky, President and CEO, Run of River Power Inc., Tel: (604) 946-9232, [ jako@runofriverpower.com ]; Vick Dusik, Chief Financial Officer, Run of River Power Inc., Tel: (604) 946-9232, [ vsdusik@runofriverpower.com ]