FINANCIAL HIGHLIGHTS
Three Months Ended | |||
($ in thousands except per share amounts) | 2023 | 2022 | |
Revenue | - | 35,792 | |
Net income | 7,751 | 16,898 | |
Earnings per share – basic | 0.15 | 0.34 | |
Earnings per share – diluted | 0.14 | 0.28 | |
Adjusted EBITDA(1) | 11,731 | 15,893 | |
Total generation – (MWh) | - | 393,591 | |
Total fuel consumption – (GJ) | 21,546 | 4,179,531 | |
Average | 142.00 | 89.80 | |
Average realized power price ($ per MWh) | - | 90.94 | |
Loans and borrowings | 82,296 | 83,570 | |
Net debt(1) | 30,961 | 48,464 | |
Total assets | 382,622 | 364,569 |
(1) | Select financial information was derived from the consolidated financial statements and is prepared in accordance with GAAP, except adjusted Earnings before Interest, Income Taxes, Depreciation and Amortization (“Adjusted EBITDA”), which is a non-GAAP measure (see Non-GAAP Financial Measures below). Net debt is included in the notes to the consolidated financial statements. It is calculated to include: loans and borrowings (including the convertible loan facility) less unrestricted cash |
OPERATING RESULTS
During the first quarter of 2023, MAXIM recorded net income and adjusted earnings before interest, taxes, depreciation and amortization, (“Adjusted EBITDA”(1)) of
M2 RETURN TO SERVICE UPDATE
MAXIM has disassembled the damaged air inlet filter house caused by the Incident at M2, procured a replacement air inlet filter house and is actively expediting the construction process to restore M2 to operational service as soon as possible. Installation of the new air inlet filter house commenced in
M2 CCGT EXPANSION PROJECT UPDATE
As previously reported, start up of the CCGT expansion project will be delayed due to the Incident. Construction of the CCGT expansion project is currently greater than 99% complete, however, hot-commissioning activities cannot occur until M2 is returned to service.
The estimated project cost, excluding borrowing costs and the net effect of
Completion of the CCGT expansion of M2 will allow for the capture of waste heat that would otherwise exhaust into the atmosphere and turn it into useful low carbon electricity for the
At this time, MAXIM forecasts it has sufficient liquidity to complete both the CCGT expansion of M2 and the replacement of the air inlet filter house and will fund these costs using cash on hand, available funds through the existing senior and subordinated credit facilities, and anticipated insurance proceeds, as required.
FINANCING UPDATE
MAXIM has amended and received consent for certain terms and conditions under the senior and subordinated credit facilities to make the necessary changes to maintain compliance and appropriately address the impact from the Incident at M2 and timing of the commissioning of the CCGT expansion of M2. Changes of most significance include revising the timing of the completion of the CCGT expansion of M2, including the air inlet filter house repair program, pausing the Corporation’s normal course issuer bid until after the CCGT expansion of M2 has achieved substantial completion and addressing other standard administrative changes for an event of this nature.
There were no changes to the availability of the senior and subordinated credit facilities which give access to an additional
INSURANCE INFORMATION UPDATE
As previously reported, MAXIM reaffirms insurance coverage for the Incident, subject to the terms and conditions of the Corporation’s
To date, MAXIM has submitted claims for
NON-GAAP FINANCIAL MEASURES
Management evaluates MAXIM’s performance using a variety of measures. The non-GAAP measure discussed below should not be considered as an alternative to or to be more meaningful than net income of the Corporation, as determined in accordance with GAAP, when assessing MAXIM’s financial performance or liquidity.
This measure does not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies.
Adjusted EBITDA
Adjusted EBITDA is provided to assist management and investors in determining the Corporation's approximate operating cash flows before interest, income taxes, and depreciation and amortization and certain other non-recurring income and expenses.
Three months ended | 2023 | 2022 | ||
GAAP Measures from Condensed Consolidated Interim Statement of Income (Loss) | ||||
Net income | 7,751 | 16,898 | ||
Income tax expense | 2,280 | 5,105 | ||
Finance expense, net | 1,356 | 1,683 | ||
Depreciation and amortization | 2,009 | 2,105 | ||
13,396 | 25,791 | |||
Adjustments: | ||||
Other income | (19,963 | ) | - | |
Unrealized gain on commodity swaps | - | (10,017 | ) | |
Business interruption insurance claim | 18,150 | - | ||
Share-based compensation | 148 | 119 | ||
Adjusted EBITDA | 11,731 | 15,893 |
Adjusted EBITDA is calculated as described above from its most directly comparable GAAP measure, net income, and adjusts for specific items that are not reflective of the Corporation’s underlying operations and excluding other non-cash items.
Adjusted EBITDA is provided to assist management and investors in determining the Corporation’s approximate operating cash flows attributable to shareholders before finance expense, income taxes, depreciation and amortization, and certain other non-recurring or non-cash income and expenses. Financing expense, income taxes, depreciation and amortization are excluded from the Adjusted EBITDA calculation, as they do not represent cash expenditures that are directly affected by operations. Management believes that presentation of this non-GAAP measure provides useful information to investors and shareholders as it assists in the evaluation of performance trends. Management uses Adjusted EBITDA to compare financial results among reporting periods and to evaluate MAXIM’s operating performance and ability to generate funds from operating activities.
In calculating Adjusted EBITDA for the quarter ended
About MAXIM
Based in
Forward-looking statements
This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to MAXIM's plans and other aspects of MAXIM's anticipated future operations, management focus, objectives, strategies, financial, operating and production results. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend", "may", "would", "could" or "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking information concerning, among other things, the timing of resuming M2 operations and repairs and replacement of the air inlet filter house, the timing of hot commissioning activities and damages to the M2 facility, expected benefits and costs of the CCGT expansion of M2, current expectation on MAXIM’s inability to generate electricity (and related revenue) from its Milner operations and MAXIM's insurance claim related to the same.
Forward-looking information is based on certain assumptions and analysis made by MAXIM in light of our experience and MAXIM’s perception of historical trends, current conditions, expected future developments and other factors MAXIM believes appropriate under the circumstances. These include, among other things, assumptions regarding the timing of resuming M2 operations and repairs, the timing of hot commissioning activities, insurance coverage, MAXIM's current assessment of damages to the M2 facility, estimated project costs and MAXIM's current expectations on its inability to generate electricity (and related revenue) from its Milner operations.
MAXIM's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that MAXIM will derive there from. Risk factors include MAXIM’s inability to repair the damage caused by the Incident in a timely manner, or at all, that MAXIM will not continue to have access to its credit facilities or that it will be in default thereunder, that MAXIM may not be able to resume electricity generating (and associated revenue generating) activities in the timelines described herein, that MAXIM will not have access to the necessary labour, equipment and materials to conduct all necessary repairs and that MAXIM may not be covered by insurance for the subject damages and business interruption. Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect MAXIM’s business, operations or financial results are included in the reports on file with applicable securities regulatory authorities, including but not limited to MAXIM’s Annual Information Form for the year ended
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