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Ram Power Announces 2010 First Quarter Results


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Published in Business and Finance on Thursday, May 13th 2010 at 10:20 GMT by Market Wire   Print publication without navigation


RENO, NV--(Marketwire - May 13, 2010) - Ram Power, Corp. (TSX: [ RPG ]) ("Ram Power" or the "Company") today reported its financial and operating results for the first quarter ended March 31, 2010. This earnings release should be read in conjunction with Ram Power's MD&A and financial statements, which are available on the Company's website at [ www.ram-power.com ] and have been posted on SEDAR at [ www.sedar.com ].

Concurrent with today's release, Hezy Ram, CEO of Ram Power, said, "In keeping with our business plan, the Company is continuing the process of consolidating its operations as a result of the October 2009 business combination. The construction at our San Jacinto-Tizate project proceeds both on budget and on schedule. The Company commenced drilling in Nicaragua and California, entered into new geothermal leases in the United States and began negotiations with relevant parties to accelerate development of some of its properties. We also drew down the first amount under the $77 million credit facility for the San Jacinto Phase I expansion and have begun the negotiation process for the Phase II expansion's financing."

Mr. Ram continued, "The financial results for the quarter were in line with our expectations, and we continue to make great strides in our Company."

OVERVIEW

The financial results of Ram Power for the three months ended March 31, 2010 and 2009 are summarized below:

 ---------------- ---------------- For the Three For the Three Months Ended Months Ended (All figures in U.S. dollars) March 31, 2010 March 31, 2009 ---------------- ---------------- Total Revenue $ 974,425 $ 1,365,544 Direct Cost of Energy Production (500,633) (594,664) Expenses (4,612,550) (1,088,689) Other Income (Loss) 94,754 (1,042,558) Net Loss (4,038,323) (1,352,526) Loss per share (0.03) (0.02) ---------------- ---------------- For the Three For the Twelve Months Ended Months Ended March 31, 2010 December 31, 2009 ---------------- ---------------- Total assets 373,170,441 357,784,707 Total liabilities 32,969,112 16,001,693 Cash and Cash Equivalents 119,090,656 123,341,372 Working Capital 112,701,300 115,150,121 

For the purpose of this summary, the results of Polaris for the three months ended March 31, 2009 are used as comparatives because, for accounting purposes, the financial statements of the Company are deemed to be a continuation of the financial statements of Polaris.

The Company's $4,038,323 loss is the result of a decrease in revenue of $391,119 and an increase in expenses of $3,523,861. The decrease in the Company´s revenues is the result of the existing 10MW project in Nicaragua being taken off-line for approximately two weeks due to the continuing construction of the San Jacinto Phase I and II expansions and a 2009 recovery of revenues earned in 2005. The $3,523,861 increase in expenses is primarily the result of $2,201,138 of compensation expenses related to the Company's stock option grant to its directors and officers in October 2009. The balance is attributed to additional general and administrative expenses related to the larger corporate infrastructure subsequent to the business combination in October 2009. The increase in expenses was partially offset by a decrease in direct costs of $94,031 due to reduced energy production.

OUTLOOK

Ram Power is currently in negotiations with several lenders to provide a project debt facility for the Phase II San Jacinto-Tizate expansion stage to 72 MW which is expected to close in third quarter 2010. Construction of Phase II is being conducted in parallel to Phase I. In addition, Ram Power will be actively developing its nearby Casita project for which the Company has entered into a letter of intent with the local utility to sell up to 157 MW of power. The Company's power purchase agreement with Southern California Edison for the Orita project was recently approved by the California Public Utilities Commission. The Company's New River project and other potential projects in the Imperial Valley, California are currently under various stages of development. Work continues with the Imperial Irrigation District to advance a 50 MW geothermal project pursuant to a recently executed letter of intent and permitting has commenced for the Clayton Valley project.

With respect to the Geysers property, the Company expects to make an announcement shortly about its plans to develop this project. Other geothermal properties will continue to be evaluated in the United States, Canada and Chile during 2010.

Hezy Ram, CEO of Ram Power, concluded, "We are continuing on our course to bring our projects closer to their commercial operation and to bring clean, renewable energy to the people of North and Latin America."

About Ram Power, Corp.

Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has interests in geothermal projects in the United States, Canada, and Latin America.

Ram Power, Corp. will hold its inaugural earnings call to discuss the 2009 Year End and First Quarter financial and operating results on Friday, May 14, 2010 at 10:00am EDT (7:00 am PDT).

Cautionary Statements

This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in this news release. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power, Corp. assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.


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