China Wind Power Reports Second Quarter FY2011 Financial Results
29 November 2010 - 11:00PM
PR Newswire (Canada)
TORONTO, Nov. 29 /CNW/ -- TORONTO, Nov. 29 /CNW/ - China Wind Power
International Corp. (TSX-V: CNW) today reported its financial
results for the three- and six-month periods ended September 30,
2010. All amounts are in Canadian dollars unless otherwise
indicated. Selected Second Quarter Financial Highlights
_____________________________________________________________________
|In thousands except share or % |Sept. 30, 2010|Sept. 30, 2009|
Change| |data | | | |
|_______________________________|______________|______________|_______|
|Total sales | $1,217| $705| +72.6%|
|_______________________________|______________|______________|_______|
|Recorded revenue | $1,217| -|+$1,217|
|_______________________________|______________|______________|_______|
|Adjusted EBITDA(1) | $1,291| ($393)|+$1,684|
|_______________________________|______________|______________|_______|
|Net earnings (loss) | ($569)| ($2,726)|+$2,158|
|_______________________________|______________|______________|_______|
|Net earnings (loss) per share -| | | | |diluted(2) | ($0.01)|
($0.06)| +$0.05|
|_______________________________|______________|______________|_______|
| |Sept. 30, 2010|March 31, 2010| Change|
|_______________________________|______________|______________|_______|
|Cash and Cash equivalents | $1,789| $373|+$1,416|
|_______________________________|______________|______________|_______|
|Total assets | $133,598| $114,185| +17.0%|
|_______________________________|______________|______________|_______|
|Total liabilities | $86,425| $71,075| +21.6%|
|_______________________________|______________|______________|_______|
(_____________________________________) (1) Earnings
before interest, taxes, depreciation and amortization (EBITDA) is
often used as a measure of financial performance. However, EBITDA
is not a term that has specific meaning in accordance with
generally accepted accounting principles and may be calculated
differently by other companies. China Wind reconciles EBITDA to its
net earnings (loss). Adjusted EBITDA excludes stock-based
compensation. (2) China Wind Power's weighted average number
of shares at September 30, 2010 was 61,642,698 compared to
47,979,497 at September 30, 2009. "Consistent with expectations,
our second quarter was marked by steady improvement to each of our
key financial metrics," said Mr. Jun Liu, Chief Executive Officer,
China Wind Power International Corp. "In particular, we generated
record revenue and record adjusted EBITDA. We also posted our
lowest net loss to date. This progress positions us very well as we
enter the time of year when wind speeds in China are at their
highest and the potential for power generation is at its peak." Q2
Operational Highlights -- Generated more than 15.2 million KWh of
electricity in Q2 for an aggregate production to date of 83 million
KWh as of September 30, 2010. -- Continued construction of Phase 2,
which is expected to be completed in the second quarter of calendar
2011 and generate a capacity of 49.5 MW of wind energy output.
Highlights subsequent to Quarter-end -- Closed a non-brokered
private placement that generated gross proceeds of $4.3 million. --
In final process with the Agricultural Development Bank of China
for additional debt financing that will support the completion of
Phase 2 and future wind power projects. -- Generated 10.7 million
KHh of electricity in October, 2010. Selected Year-to-Date 6-Month
Financial Highlights
_________________________________________________________________
|In thousands except share or % data | FY2011| FY2010| Change|
|_______________________________________|________|________|_______|
|Total sales | $2,423| $1,334| +81.6%|
|_______________________________________|________|________|_______|
|Recorded revenue | $2,423| -|+$2,423|
|_______________________________________|________|________|_______|
|Adjusted EBITDA | $1,890| ($785)|+$2,675|
|_______________________________________|________|________|_______|
|Net earnings (loss) |($1,974)|($3,129)|+$1,155|
|_______________________________________|________|________|_______|
|Net earnings (loss) per share - diluted| ($0.03)| ($0.08)| +$0.05|
|_______________________________________|________|________|_______|
Review of Second Quarter Financial Results Total electricity sales
for the second quarter of FY2011 were $1.2 million, up 72.7% from
$0.7 million for the corresponding period of FY2010. The growth is
due to the completion of Phase 1 of the Company's wind energy
projects and the resulting start of commercial energy production.
Total sales for Q2 FY2011 were impacted by slower wind speed, which
is common in China during the summer months. Subsequent to
quarter end, the Company generated 10.7 million KWh of electricity
in October. The increase in electricity product is
attributable to a combination of factors, including higher wind
speeds that are prevalent in China during the fall months as well
as improved turbine performance resulting from the ongoing
calibration and tuning of equipment. Phase 1 is currently operating
at an average of 60% capacity consistent with Management's
expectation and previous guidance given ongoing calibration and
tuning of turbines. It is expected that full production capacity
for Phase 1 will be achieved in the first quarter of calendar 2011.
Revenue for Q2 FY2011 was $1.2 million. The Company had no recorded
revenue for the corresponding period of FY2010 after excluding the
recovery of wind farm plant costs of $705,162. The recovery
costs were recorded during the testing, tuning and calibration of
the Phase 1 wind project. Adjusted EBITDA for Q2 FY2011 was $1.3
million, up from adjusted negative EBITDA of $0.4 million for the
corresponding of FY2010, representing a positive turnaround of $1.7
million. The year-over-year improvement in adjusted EBITDA
was due to a number of factors, including higher revenue and higher
amortization and interest expenses as the Company continues its
roll-out of its five-phased development plan. Adjusted EBITDA
for Q2 FY2011 excluded a stock-based compensation charge of $0.2
million as well as amortization expenses of $0.9 million and
interest expenses of $0.8 million. Net loss for Q2 FY2010 was
$0.6 million, or $0.01 per share. This compares to a net loss
of $2.7 million, or $0.06 per share, for Q1 FY2010. The
decline in net loss was primarily attributable to the recording of
revenue sales of $1.2 million and a decline in stock-based
compensation charges of more than $2.1 million on a year over year
basis. At September 30, 2010, China Wind had cash totaling
$1.8 million, total assets of $133.6 million and total liabilities
of $86.4 million. These compare to $0.4 million, $114.2 million and
$71.1 million, respectively at March 31, 2010. Subsequent to
quarter end, the Company closed a private placement that generated
gross proceeds of $4.3 million. Outlook "Our recent financing will
help us to accelerate completion of Phase 2 of our wind farm
project, which we now expect to be completed by the end of the
second quarter of calendar 2011," added Mr. Liu. "Adding
another 49.5 MW of capacity will be a key milestone on our path
towards completing our five-phased development plan, which will
generate 547 MW of wind energy, by the end of 2014." About China
Wind Power International Corp. China Wind Power International Corp.
is an Ontario company that is uniquely positioned to capitalize on
the growing demand for wind power in China. The Company
indirectly holds the exclusive rights for wind energy development
in Du Mon County, Heilongjiang Province, which has a demonstrated
potential installed capacity of 1,150 MW of wind energy developable
over an area of 612 square km. While 1,150 MW represents the
Company's long-term potential for wind power in the area, its
current plans are for building out 546 MW over five development
phases. The Company's common shares are listed on the TSX
Venture Exchange under the symbol CNW. The Company has
approximately 61.5 million shares outstanding. For more information
and the latest updates on China Wind Power, visit our investor
relations blog at http://chinawindpower.posterous.com or follow us
on Twitter at http://twitter.com/ChinaWindPower Forward-looking
statements Certain statements that are not historical facts made in
this press release may be forward looking statements subject to
risks and uncertainties. Statements containing words such as
"will", "could", "expect", "may", "anticipate", "believe",
"intend", "estimate", "plan" and other similar expressions are
forward-looking statements that represent management's beliefs at
the time the statements are made and are based on certain factors
and assumptions including wind farm construction and commercial
production schedule, output and capacity, revenue and earnings
expectations and market potential. These forward-looking statements
are subject to a variety of risks and uncertainties and other
factors that could cause actual events to differ materially from
those projected in forward-looking statements. Important factors
that could cause actual results to differ materially from the
Company's expectations include uncertainties involving the
availability of financing; fluctuations in currency exchange rates;
uncertainties relating to economic and market conditions;
uncertainty of estimates of capital and operating costs; the
need to obtain additional financing to develop the projects and
uncertainty as to the availability and terms of future financing;
the possibility of delay in construction projects and uncertainty
of meeting anticipated program milestones; uncertainty as to timely
availability of permits and other governmental approvals; and other
risks and uncertainties disclosed in the information circular dated
May 29, 2009 relating to the Company's reverse take-over with
Berkshire Griffin Inc., which is available at www.sedar.com under
the Company's profile. Except as required by applicable securities
laws, the Company undertakes no obligation to update any forward
looking statement to reflect events or circumstances after the date
on which such statement is made. 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. table border="0"
valign="top"tr valign="top"td align="left"Wendell Zhangbr/ Chief
Financial Officerbr/ China Wind Power International Corp.br/ Tel:
416-916-4205br/ Email: a
href="mailto:wzhang@chinawindpowerinternational.com"wzhang@chinawindpowerinternational.com/a/td
td /td td /td td align="left"Joe Racanellibr/ Investor
Relationsbr/ The Equicom Group Inc.br/ Tel: 416-815-0700 ext 243br/
Email: a
href="mailto:jracanelli@equicomgroup.com"jracanelli@equicomgroup.com/a /td/tr/table
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