Run of River Power Reports Second Quarter Results

    




 VANCOUVER, Aug. 24, 2012 /CNW/ - Run of River Power Inc. ("ROR Power" or  "the Company")  today announced financial and operating  results for the quarter ended June 30, 2012. The consolidated financial  statements and management discussion and analysis 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. 

 Highlights 




        --  Quarterly production at the Brandywine hydro-electric facility
            - 11,165 MWh compared to the comparable quarter in 2011 of
            9,202 MWh - an increase of over 21.3%.

        --  Recorded a General and Administration ("G&A") reduction of
            $320,524, or 49.5% lower than G&A expense during the comparable
            quarter in 2011.

        --  The Company continues to work with its partner, Concord
            Pacific, to identify and secure the most favourable debt
            financing terms for the Skookum Power Project.

        --  Advanced finalization of the permits and licences required to
            begin construction of the Project.




 "ROR is very pleased to report that the Company continues to meet its  objectives to enhance shareholder value through continued plant  optimization, cost reduction efforts and the realization of the 25 MW  Skookum Creek Project," stated Richard Hopp, ROR Power's President and  CEO.  "We have made significant progress on Project financing and  advancing the required material permits for the Skookum Creek Power  Project.   We are still on target to commission the Project, as  planned, in the first quarter 2014." 

 Financial Summary  





                                                                   

    ($000's except per share and       Three Months Ended Six Months Ended
    generation amounts)                     June 30           June 30

                                         2012        2011    2012     2011

    Electricity sales                     669         545     810      697

    EBITDA                                162       (285)   (270)    (957)

    Loss                                (357)       (836) (1,539)  (2,027)

    Basic and diluted loss per share   (0.01)      (0.01)  (0.02)   (0.02)

    Cash flow used (from) in              361       (420)   (113)    (649)
    operations

    Total assets                       27,097      27,036  27,097   27,036

    Long-term debt                     13,541      10,112  13,541   10,112

    Generation-MWh                     11,165       9,202  13,521   11,765






  





    (1)      EBITDA is earnings before interest, taxes, depreciation and
             amortization and is not a
             measure under International Financial Reporting Standards
             ("IFRS") 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 

 The Brandywine facility over the last year continues to benefit from  improvements in conversion efficiency and increased generation  potential. Q2  2012 electricity sales of $669,078 increased $123,921 or  22.7% from Q2 2011 sales of $545,157 as a direct result of increased  electricity generated to 11,165  MWh from 9,202 MWh. YTD 2012  electricity sales of $810,234 increased $113,253 or 16.2% from 2011 YTD  sales of $696,981. YTD production increased 14.9% to 13,521 MWh from  11,765 MWh. The increase in electricity generation and sales is  attributable to increased water flows, primarily from a favourable  annual snow pack melt profile, and efficiency improvements at the  Brandywine Creek hydroelectric facility. 

 EBITDA for Q2 2012 was $161,316 compared to negative $284,668.  The  increase in EBITDA is due substantially to reduced General and  Administration ("G&A") expense compared to the comparable period in  2011 and increased production at the Brandywine hydro-electric  facility. G&A expense of $327,296 during Q2 2012 was $320,524, or 49.5%  lower than G&A expense of $647,820 during Q2 2011. 

 The Corporation recorded a loss for the second quarter of $356,760  compared to a loss of $835,861 for the comparable quarter in 2011. The  decrease in the net loss is a result of a reduction in G&A expense. YTD  loss decreased $487,541 to $1,539,070 compared to 2011 YTD loss of  $2,026,611. The loss, before impairment, would have been $1,342,610 for  2012 YTD, an improvement of $684,001 compared to the YTD results of  2011. 

 Funds from operations were $361,286 in the second quarter of 2012  compared to funds used in operations of $419,780 for the second quarter  of 2011.  YTD funds used in operations were $112,642 compared to  $648,800 for the comparable six month period in 2011. The change in  funds used in operations for the 2012 quarter and YTD is due primarily  to changes in working capital. 

 Financial Position 

 At June 30, 2012, the Corporation had $1.1 million in cash on hand.  These cash resources will be used to carry out further development of  the Mamquam watershed and future run-of-river development projects. 

 The Company recently entered into agreements with certain subsidiaries  in the Concord Pacific group of companies to provide equity financing  for ROR Power's 25 MW Skookum Power Project as more fully described in  the 2011 Annual Financial Statements as filed with ww.sedar.com.  Accordingly, the Company is evaluating alternatives for raising Project  debt to complete this project and is currently negotiating with a  lender. 

 Non-GAAP Measures 

 The Company reports its financial position, results of operations and  cash flows in accordance with International Financial Reporting  Standards ("IFRS"). 

 About Run of River Power Inc. 

 ROR Power develops renewable, sustainable energy through its portfolio  of clean energy projects. The company helps diversify BC's energy mix  by providing a cleaner way to generate power and increasing the  security of BC's energy supply.  ROR Power operates an Eco Logo©  certified hydroelectric power generation station at Brandywine Creek,  near Whistler, BC that provides green power for about 4,000 homes. The  company is well positioned for profitable growth through power  generation initiatives that include its 25 MW Skookum Power Project,  awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR  Power's total development potential is approximately 400 MW. 

 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. 

Run of River Power Inc.


CONTACT:  Information ContactRichard W. HoppPresident and CEOTel: [e-mail] 


    

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