TORONTO, ONTARIO–(Marketwired – May 30, 2016) – Transeastern Power Trust (“Transeastern” or the “Trust”) (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) has released its unaudited financial results for the quarter ended March 31, 2016. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
Q1 2016 Highlights
- Produced a total of 5,187 MWh of energy (1,470 MWh from its hydro projects and 3,717 from its solar projects), an increase of 144% over Q1, 2015
- Generated revenues of $1,306,036, an increase of 292% over Q1 2015
- Declared and paid first quarterly distribution of $0.021875 per unit of the Trust (each, a “Unit”) in accordance with the annualized target dividend of $0.0875 through a combination of cash and Unit issuances to unitholders who elected to participate in the Trust’s distribution reinvestment plan
- Incurred net loss of $553,354 with basic and diluted net loss per Unit of $0.02
- Earned operating margin(1) of $628,059, an increase of 2,394% over 2015 where operating margin was $25,175.
- In connection with its proposed acquisition and refinancing plans, the Trust:
- signed letters of intent for the acquisition of a 17 MW operational wind project and three operational hydro projects totaling 3.65 MW, each located in Romania;
- signed a letter of intent to obtain a $10 million secured debt and royalty facility; and
- entered into a non-binding term sheet for the refinancing of EUR17.5 million of existing debt facilities.
Subsequent Events
- Subsequent to the end of the first quarter of 2016, the Trust closed two private placements for total net proceeds of $1.0 million and issued 1,472,442 Units, 1,472,442 Unit purchase warrants and a total of 90,263 broker warrants.
J. Colter Eadie, Chief Executive Officer of Transeastern, commented, “We are encouraged to see the improvements in energy production and increases in operating cash flow driven by our solar operations. We remain focused on our vision of growing, diversifying, and de-risking our business to deliver steady returns to our Unitholders through regular distributions. Our previously announced financings and proposed acquisitions are progressing with a target to close the transactions by the end of the second quarter.”
About Transeastern
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under Transeastern’s issuer profile at www.sedar.com.
Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading “Risks and Uncertainties” in Transeastern’s annual management discussion and analysis dated April 29, 2016, a copy of which is available on Transeastern’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the 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.
(1) Operating margin is a non-GAAP measure calculated by deducting cost of sales from revenues. Refer to “Non-GAAP Measure” in the Trust’s Management’s Discussion and Analysis for the three month period ended March 31, 2016 for further details.
Ravi Sood
Chairman
+1 (647) 987-7663
rsood@transeastern.com
Transeastern Power Trust
J. Colter Eadie
Chief Executive Officer
+40 736 372 724
jceadie@transeastern.com
Transeastern Power Trust
Mike Murphy
Chief Financial Officer
+1 (416) 625-5064
mmurphy@transeastern.com
www.transeastern.com