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Run of River Power Reports Results For Second Quarter 2009

^{Published on 2009-08-27 04:03:54, Last Modified on 2009-08-27 04:03:55 - Market Wire}
 

 VANCOUVER, Aug. 27, 2009 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Corporation") (TSX-V: ROR) today announced financial and operating results for the second quarter ended June 30, 2009. The management 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 in Canadian dollars unless otherwise stated. Summary - Electricity generated by the Brandywine Creek facility during Q2 was up 20% from the same period in 2008 and up 12% year to date. - Subsequent to quarter end, the B.C. Utilities Commission ruled that BC Hydro's Long Term Acquisition Program must be reevaluated and resubmitted in 2010. On Aug 24, BC Hydro announced with respect to the Clean Power Call that it anticipated any energy purchase agreement awards will occur in the fall of 2009. "ROR Power had a good second quarter. Power generation at Brandywine was in line with expectations and we continue to make progress on our portfolio of run-of-river and biomass projects," said Jako Krushnisky, President and CEO. "While the recent BCUC decision has added an element of uncertainty to the BC IPP sector, we anticipate and look forward to clarification in the weeks ahead. The Upper Pitt and Mamquam projects submitted into BC Hydro's Clean Power Call late last year represent 180 MW of capacity and our 60 MW Tsilhqot'in joint-venture biomass project has had a number of positive developments in recent months." Financial Summary ------------------------------------------------------------------------- ($ in thousands, except Three Months Ended Six Months Ended per share amounts) June 30 June 30 2009 2008 2009 2008 Electricity sales 577 477 662 586 EBITDA(1) (7) (182) (403) (686) Net loss (317) (464) (1,063) (1,232) Basic and diluted loss per share (0.00) (0.01) (0.02) (0.02) Cash flow used in operations (328) (488) (810) (989) Total assets 31,176 32,776 31,176 32,776 Generation (MWh) 9,918 8,243 11,389 10,131 ------------------------------------------------------------------------- (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 June 30, 2009, electricity generation increased 20% from the comparable period last year to 9,918 MWh, resulting in a similar increase in electricity sales to $576,934. YTD electricity generation increased 12%, resulting in a similar increase in electricity sales to $662,480. EBITDA in Q2 2009 of ($7,229) was a $174,294 improvement from the same period in 2008. YTD EBITDA of ($ 402,178) was a $283,183 improvement over the same period in 2008. The Corporation recorded a net loss for the second quarter of 2009 of $317,291 compared to $464,485 for the same period in 2008. Funds used in operations were $328,117 for the second quarter of 2009 compared to $487,727 for the same period of 2008. The increase in electricity generation and sales for the first six months of 2009 compared to the same period in 2008 are attributable to increased snowpack melt at the Brandywine facility. This increase in revenue, combined with lower general and administration costs, namely reduced legal expenditures and reduced stock based compensation, are the main factors contributing to the improvement in operating results for the first six months of 2009. 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. About Run of River Power Inc. ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects in British Columbia (BC). The Company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through the company's high-quality power generation initiatives. ROR Power's total development potential, in excess of 740 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016. 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. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. %SEDAR: 00013735E 

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