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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549         
 

 
FORM 8-K
 

 
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2025
Ormat Technologies, Inc. 
 

 
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
001-32347
No. 88-0326081
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
6884 Sierra Center Parkway, Reno, Nevada
 
89511
(Address of Principal Executive Offices)
 
(Zip Code)
(775) 356-9029
(Registrant’s Telephone Number, Including Area Code)
6140 Plumas Street, Reno, Nevada
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Exchange Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Shares
ORA
NYSE
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐
 


 






 
Item 2.02. Results of Operations and Financial Condition.
 
On February 26, 2025, Ormat Technologies, Inc. (the “Registrant”) reported its earnings for its fourth fiscal quarter ended December 31, 2024. A copy of the Registrant's press release containing this information is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.
 
 
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
 
The Registrant is making reference to non-GAAP financial measures in the press release. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
 
 
Item 9.01.     Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit
Description of Document
 
99.1
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 






 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
ORMAT TECHNOLOGIES, INC.
 
       
 
By:
/s /Doron Blachar
 
 
Name:    Doron Blachar
 
 
Title:      Chief Executive Officer
 
 
Date: February 26, 2025
 
EX-99.1 2 ex_783006.htm EXHIBIT 99.1 ex_783006.htm

Exhibit 99.1

 

Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
slavi@ormat.com

Investor Relations Agency Contact:
Joseph Caminiti or Josh Carroll
Alpha IR Group
312-445-2870
ORA@alpha-ir.com

 

ORMAT TECHNOLOGIES REPORTS FOURTH QUARTER AND YEAR-END 2024 FINANCIAL RESULTS

 

STRATEGIC PORTFOLIO EXPANSION SUPPORTS CONTINUED REVENUE AND ADJUSTED EBITDA GROWTH

 

STRONG FULL-YEAR RESULTS REINFORCES ORMAT’S MOMENTUM, REMAINING ON PACE TO ACHIEVE GENERATING CAPACITY GOALS OF 2.6 TO 2.8 GW BY 2028

 

 

HIGHLIGHTS

 

 

TOTAL REVENUES FOR THE FULL-YEAR INCREASED 6.1% COMPARED TO 2023, DRIVEN BY GROWTH IN ALL THREE SEGMENTS

 

 

FULL YEAR OPERATING INCOME AND ADJUSTED EBITDA IMPROVED 3.5% AND 14.3%, RESPECTIVELY

 

 

FOURTH QUARTER NET INCOME AND ADJUSTED NET INCOME IMPROVED BY 14.3% AND 7.7% YEAR-OVER-YEAR, RESPECTIVELY

 

 

ORMAT ANNOUNCES FULL YEAR 2025 OUTLOOK AND GROWTH EXPECTATIONS

 

 

RENO, Nev. February 26, 2025, Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading renewable energy company, today announced financial results for the fourth quarter and full year ended December 31, 2024.

 







 

KEY FINANCIAL RESULTS

 

   

Q4

2024

   

Q4

2023

   

Change

(%)

   

12 months

2024

   

12 months

2023

   

Change

(%)

 

GAAP Measures

                                               

Revenues ($ millions)

                                               

Electricity

    180.1       183.9       (2.1 )%     702.3       666.8       5.3 %

Product

    39.6       50.4       (21.4 )%     139.7       133.8       4.4 %

Energy Storage

    11.0       7.0       56.7 %     37.7       28.9       30.6 %

Total Revenues

    230.7       241.3       (4.4 )%     879.7       829.4       6.1 %
                                                 
Gross Profit     73.6       78.5       (6.2 )%     272.6       264.0       3.3 %
                                                 
Gross margin (%)                                                

Electricity

    34.9 %     39.5 %             34.6 %     36.6 %        

Product

    24.5 %     12.6 %             18.4 %     13.4 %        

Energy Storage

    9.5 %     (8.9 )%             10.9 %     6.4 %        

Gross margin (%)

    31.9 %     32.5 %             31.0 %     31.8 %        
                                                 

Operating income ($ millions)

    49.1       51.6       (4.9 )%     172.5       166.6       3.5 %

Net income attributable to the Company’s stockholders

    40.8       35.7       14.3 %     123.7       124.4       (0.5 )%

Diluted EPS ($)

    0.67       0.59       13.6 %     2.04       2.08       (1.9 )%
                                                 

Non-GAAP Measures

                                               

Adjusted Net income attributable to the Company’s stockholders

    43.6       40.5       7.7 %     133.7       121.9       9.7 %

Adjusted Diluted EPS ($)

    0.72       0.67       7.5 %     2.20       2.05       7.3 %

Adjusted EBITDA1 ($ millions)

    145.5       139.0       4.6 %     550.5       481.7       14.3 %

 

 

“2024 was another successful year for Ormat and our growth trajectory, highlighted by a top-line improvement of 6.1%, translating into a 3.5% increase in operating income and a 14.3% increase in adjusted EBITDA, with solid growth performance across all three of our business segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “In 2024, we added 253MW of new capacity organically and through strategic, accretive M&A, with 133MW added to our Electricity segment and 120MW to our Energy Storage business.”

 

“Within our Electricity segment, the Enel assets Ormat acquired at the beginning of the year have been immediately accretive and have played a key role in our year-over-year growth. Our performance was further supported by the Heber complex repowering project, the enhanced output at the Olkaria power plant, and the improved generation performance and pricing at the Puna power plant, helping to more than offset the impact of unplanned maintenance at Dixie Valley and the previously disclosed curtailments in the U.S.”

 

“We continue to make great progress towards improving the revenue and margin profile of our Energy Storage business, positioning the segment to become a more stable and consistent factor in our consolidated growth. This strategic effort is reflected by the 56.7% and 30.6% increase in revenue on a quarter-over-quarter and year-over-year basis, respectively. We expect this improved performance to carry forward into 2025 as we begin to recognize the benefits of the recent CODs at our 80MW/320MWh Bottleneck and 20MW/20MWh Montague facilities, as well as the other Energy Storage projects in our development pipeline that are expected to come online later this year.”

 

Blachar continued, “Looking ahead, we expect to benefit from the growing global demand for renewable power needed to support data centers and the transition to a cleaner energy future. We are currently in negotiations for approximately 250MW with hyper-scalers with favorable conditions for both new projects and expiring PPAs at rates exceeding $100 per MWh. To help ensure that we are well-positioned to meet the growing level of demand we have taken strategic actions to safe harbor, for PTC eligibility (pursuant to the current provisions of the Inflation Reduction Act and related guidance), all geothermal projects with expected CODs through 2028, as well as the associated ITC benefits for all energy storage projects through 2026. This has strengthened our confidence in our trajectory, and we believe will help us remain on track to achieve our generating capacity goals of 2.6 to 2.8 GW by the end of 2028.”

 







 

FINANCIAL HIGHLIGHTS

 

 

Net income attributable to the Company’s stockholders for the fourth quarter and for the full year 2024 was $40.8 million and $123.7 million, respectively, an increase of 14.3% and a decrease of 0.5%, respectively, compared to last year. Diluted EPS for the fourth quarter and for the full year 2024 were $0.67 and $2.04 per share, respectively, an increase of 13.6% and a decrease of 1.9%, respectively, compared to last year.

 

 

Adjusted net income attributable to the Company's stockholders and diluted EPS for the fourth quarter increased 7.7% and 7.5% compared to last year. Adjusted net income attributable to the Company's stockholders and diluted EPS for the full year 2024 increased 9.7% and 7.3% compared to last year.

 

 

Adjusted EBITDA for the fourth quarter and for the year was $145.5 million, and $550.5 million, respectively, an increase of 4.6% and 14.3%, respectively, compared to 2023. The year-over-year increase in Adjusted EBITDA was driven, in the Electricity segment, by the contribution of the acquired assets in the first quarter of 2024, the improved performance of the Olkaria complex in Kenya, higher pricing of our Puna power plant and the sale of tax benefits from newly built plants. In the Product segment, the increase was derived from the improved contracts’ margin and Energy Storage drove improved performance due to the contribution of the new assets as well as a legal settlement with a battery supplier, which we expect to continue to receive over the next 5 quarters, to compensate us for lost revenues as a result of battery non- supply.

 

 

Electricity segment revenues decreased by 2.1% for the fourth quarter and increased by 5.3% in the full year 2024, compared to 2023. The year-over-year decrease in fourth quarter revenue was driven by the partial outage at our Dixie Valley power plant, which returned to full operation in November 2024. Additionally, in the fourth quarter we experienced heavy curtailments mainly to our McGinness complex due to maintenance on the transmission line by the local grid operator. Full-year revenue growth was driven by the contribution of our acquired Enel assets, Heber complex repowering, and higher generation and pricing at Puna.

 

 

Product segment revenues decreased by 21.4% in the fourth quarter and increased by 4.4% in the full year 2024, largely due to the timing of revenue recognition. Gross margin increased from 12.6% in the fourth quarter 2023 to 24.5% in 2024 and from 13.4% in the full year 2023 to 18.4% in 2024.

 

 

Product segment backlog stands at a record of approximately $340.0 million as of February 25, 2025, and includes approximately $210.0 million from the recently signed Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 geothermal plant in New Zealand.

 

 

Energy Storage segment revenues increased 56.7% for the fourth quarter and 30.6% for the full year compared to 2023, supported by a total of 120MW/360 MWh of new capacity that started operation since the beginning of 2024 as well as new assets that came online during the second half of 2023.

 

BUSINESS HIGHLIGHTS:

 

 

Won a tender, in February 2025, issued by the Israeli Electricity Authority and was awarded two separate 15-year tolling agreements for two energy storage facilities. The facilities under the tolling agreements are expected to have a combined capacity of approximately 300MW/1200MWh and we will have 50% equity interest.

 

 

In February 2025, commenced commercial operations of the 35MW Ijen geothermal power plant in Indonesia, in which the Company holds a 49% equity interest.

 







 

 

Signed a 10-year Power Purchase Agreement (PPA), in January 2025, with Calpine Energy Solutions for up to 15MW of carbon-free geothermal capacity at favorable terms that will replace the current lower price PPA with Southern California Edison for Mammoth 2 in the first quarter of 2027.

 

 

In December 2024, commenced commercial operations at the Montague energy storage facility to deliver 20MW/20MWh of energy storage capacity to the PJM market.

 

 

In October 2024, commenced commercial operations of the 80MW/320MWh Bottleneck Energy Storage facility in the Central Valley of California. The Bottleneck facility is the Company’s largest energy storage facility in its portfolio.

 

2025 GUIDANCE

 

 

Total revenues of between $935 million and $975 million.

 

 

Electricity segment revenues between $710 million and $725 million.

 

 

Product segment revenues of between $172 million and $187 million.

 

 

Energy Storage revenues of between $53 million and $63 million.

 

 

Adjusted EBITDA to be between $563 million and $593 million.

 

 

Adjusted EBITDA attributable to minority interest of approximately $23 million.

 

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three and twelve months ended December 31, 2024. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

 

DIVIDEND

 

On February 26, 2025, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on March 26, 2025, to stockholders of record as of the close of business on March 12, 2025. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

 

CONFERENCE CALL DETAILS

 

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, February 27, 2025, at 10:00 a.m. ET.

 

Participants within the United States and Canada, please dial +1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. The access code for the call is 9044930. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast which will be hosted on the Investor Relations section of the Company's website.

 

A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 9044930. The webcast will also be archived on the Investor Relations section of the Company's website.

 







 

ABOUT ORMAT TECHNOLOGIES

 

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,538MW with a 1,248MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

 

ORMAT’S SAFE HARBOR STATEMENT

 

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and incentives and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s most recent annual report, and in subsequent filings.

 

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

 



 

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

Condensed Consolidated Statement of Operations

For the three and twelve month periods Ended December 31, 2024, and 2023

 

   

Three Months Ended

December 31,

   

Year Ended

December 31,

 
   

2024

   

2023

   

2024

   

2023

 
   

(Dollars in thousands, except per share data)

 

Revenues:

                               

Electricity

    180,147       183,921       702,264       666,767  

Product

    39,643       50,432       139,661       133,763  

Energy storage

    10,951       6,987       37,729       28,894  

Total revenues

    230,741       241,340       879,654       829,424  

Cost of revenues:

                               

Electricity

    117,340       111,201       459,526       422,549  

Product

    29,929       44,073       113,911       115,802  

Energy storage

    9,911       7,610       33,598       27,055  

Total cost of revenues

    157,180       162,884       607,035       565,406  

Gross profit

    73,561       78,456       272,619       264,018  

Operating expenses:

                               

Research and development expenses

    1,391       2,452       6,501       7,215  

Selling and marketing expenses

    4,153       4,307       17,694       18,306  

General and administrative expenses

    19,583       18,654       80,119       68,179  

Other operating income

    (3,125 )           (9,375 )      

Impairment of long-lived assets

                1,280        

Write-off of unsuccessful exploration activities and storage activities

    2,474       1,415       3,930       3,733  

Operating income

    49,085       51,628       172,470       166,585  

Other income (expense):

                               

Interest income

    1,389       2,363       7,883       11,983  

Interest expense, net

    (34,525 )     (25,803 )     (134,031 )     (98,881 )

Derivatives and foreign currency transaction gains (losses)

    (4,319 )     712       (4,187 )     (3,278 )

Income attributable to sale of tax benefits

    20,020       18,676       73,054       61,157  

Other non-operating income (expense), net

    66       1,272       188       1,519  

Income from operations before income tax and equity in earnings (losses) of investees

    31,716       48,848       115,377       139,085  

Income tax (provision) benefit

    11,771       (8,188 )     16,289       (5,983 )

Equity in earnings (losses) of investees

    (862 )     (1,827 )     (425 )     35  

Net income

    42,625       38,833       131,241       133,137  

Net income attributable to noncontrolling interest

    (1,804 )     (3,107 )     (7,508 )     (8,738 )

Net income attributable to the Company's stockholders

    40,821       35,726       123,733       124,399  

Earnings per share attributable to the Company's stockholders:

                               

Basic:

    0.67       0.59       2.05       2.09  

Diluted:

    0.67       0.59       2.04       2.08  

Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:

                               

Basic

    60,480       60,367       60,455       59,424  

Diluted

    60,770       60,505       60,790       59,762  

 







 

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

Condensed Consolidated Balance Sheet

For the Periods Ended December 31, 2024, and 2023

 

   

December 31, 2024

   

December 31, 2023

 

ASSETS

 

Current assets:

               

Cash and cash equivalents

    94,395       195,808  

Restricted cash and cash equivalents (primarily related to VIEs)

    111,377       91,962  

Receivables:

               

Trade less allowance for credit losses of $224 and $90, respectively (primarily related to VIEs)

    164,050       208,704  

Other

    50,792       44,530  

Inventories

    38,092       45,037  

Costs and estimated earnings in excess of billings on uncompleted contracts

    29,243       18,367  

Prepaid expenses and other

    59,173       41,595  

Total current assets

    547,122       646,003  

Investment in an unconsolidated company

    144,585       125,439  

Deposits and other

    75,383       44,631  

Deferred income taxes

    153,936       152,570  
                 

Property, plant and equipment, net ($3,271,248 and $2,802,920 related to VIEs, respectively)

    3,501,886       2,998,949  

Construction-in-process ($251,442 and $376,602 related to VIEs, respectively)

    755,589       814,967  

Operating leases right of use ($13,989 and $9,326 related to VIEs, respectively)

    32,114       24,057  

Finance leases right of use (none related to VIEs)

    2,841       3,510  

Intangible assets, net

    301,745       307,609  

Goodwill

    151,023       90,544  

Total assets

    5,666,224       5,208,279  
                 

LIABILITIES AND EQUITY

 

Current liabilities:

               

Accounts payable and accrued expenses

    234,334       214,518  

Short term revolving credit lines with banks (full recourse)

          20,000  

Commercial paper (less deferred financing costs of $23 and $29, respectively)

    99,977       99,971  

Billings in excess of costs and estimated earnings on uncompleted contracts

    23,091       18,669  
                 

Current portion of long-term debt:

               

Limited and non-recourse (primarily related to VIEs): 

    70,262       57,207  

Full recourse

    161,313       116,864  

Financing Liability

    4,093       5,141  

Operating lease liabilities

    3,633       3,329  

Finance lease liabilities

    1,375       1,313  

Total current liabilities

    598,078       537,012  

Long-term debt, net of current portion:

               

Limited and non-recourse (primarily related to VIEs and less deferred financing costs of $8,849 and $7,889, respectively)

    578,204       447,389  

Full recourse (less deferred financing costs of $4,671 and $3,056, respectively)

    822,828       698,187  

Convertible senior notes (less deferred financing costs of $6,820 and $8,146, respectively)

    469,617       423,104  

LT Financing liability-Dixie

    216,476       220,619  

Operating lease liabilities

    22,523       19,790  

Finance lease liabilities

    1,529       2,238  

Liability associated with sale of tax benefits

    152,292       184,612  

Deferred income taxes

    68,616       66,748  

Liability for unrecognized tax benefits

    6,272       8,673  

Liabilities for severance pay

    10,488       11,844  

Asset retirement obligation

    129,651       114,370  

Other long-term liabilities

    29,270       22,107  

Total liabilities

    3,105,844       2,756,693  
                 

Redeemable noncontrolling interest

    9,448       10,599  
                 

Equity:

               

The Company's stockholders' equity:

               

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,500,580 and 60,358,887 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

    61       60  

Additional paid-in capital

    1,635,245       1,614,769  

Treasury stock, at cost (258,667 shares held as of December 31, 2024 and 2023, respectively)

    (17,964 )     (17,964 )

Retained earnings

    814,518       719,894  

Accumulated other comprehensive loss

    (6,731 )     (1,332 )

Total stockholders' equity attributable to Company's stockholders

    2,425,129       2,315,427  

Noncontrolling interest

    125,803       125,560  

Total equity

    2,550,932       2,440,987  

Total liabilities, redeemable noncontrolling interest and equity

    5,666,224       5,208,279  

 







 

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

Reconciliation of EBITDA and Adjusted EBITDA

For the three and twelve month period ended December 31, 2024 and 2023

 

We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) costs related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

 

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and twelve month periods ended December 31, 2024, and 2023:

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2024

   

2023

   

2024

   

2023

 
   

(Dollars in thousands)

   

(Dollars in thousands)

 

Net income

    42,625       38,833       131,241       133,137  

Adjusted for:

                               

Interest expense, net (including amortization of deferred financing costs)

    33,136       23,440       126,148       86,898  

Income tax provision (benefit)

    (11,771 )     8,188       (16,289 )     5,983  

Adjustment to investment in unconsolidated companies: our Proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen

    4,964       5,243       17,637       16,069  

Depreciation, amortization and accretion

    68,907       59,331       259,151       221,415  

EBITDA

    137,861       135,035       517,888       463,502  

Mark-to-market on derivative instruments

    (14 )     (2,490 )     856       (2,206 )

Stock-based compensation

    5,310       4,243       20,197       15,478  

Impairment of long-lived assets

                1,280        

Allowance for bad debts

    13             355        

Merger and acquisition transaction costs

    570       816       1,949       1,234  

Legal fees related to a settlement agreement with a third-party battery systems supplier

    (750 )           4,000        

Write-off of unsuccessful exploration and Storage activities

    2,474       1,415       3,930       3,733  

Adjusted EBITDA

    145,464       139,019       550,455       481,741  

 







 

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS

For the Three and twelve-month periods ended December 31, 2024, and 2023

 

Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

 

The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three and twelve -month periods ended December 31, 2024, and 2023.

 

 

   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 
   

2024

   

2023

   

2024

   

2023

 
                                 

GAAP Net income attributable to the Company's stockholders

    40.8       35.7       123.7       124.4  

Impact of changes in the Kenya Finance Act 2023

          2.0             (7.4 )

Tax asset write-off in Sarulla, our unconsolidated company

    0.9       1.0       0.9       1.0  

Impairment of long-lived assets

                1.0        

Write-off of unsuccessful exploration activities and Storage activities

    2.0       1.1       3.1       2.9  

Merger and acquisition transaction costs

    0.5       0.6       1.5       1.0  

Allowance for bad debts

    0.0             0.3        

Legal fees related to a settlement agreement with a third-party battery suppliersupplier

    (0.6 )           3.2        

Adjusted Net income attributable to the Company's stockholders

    43.6       40.5       133.7       121.9  

GAAP diluted EPS

    0.67       0.59       2.04       2.08  

Impact of changes in the Kenya Finance Act 2023

          0.03             (0.12 )

Tax asset write-off in Sarulla, our unconsolidated company

    0.01       0.02       0.01       0.02  

Impairment of long-lived assets

                    0.02          

Write-off of unsuccessful exploration activities and Storage activities

    0.03       0.02       0.05       0.05  

Merger and acquisition transaction costs

    0.01       0.01       0.03       0.02  

Allowance for bad debts

    0.00             0.00        

Legal fees related to a settlement agreement with a third-party battery supplier

    (0.01 )           0.05        

Diluted Adjusted EPS ($)

    0.72       0.67       2.20       2.05