FINANCIAL HIGHLIGHTS
Three Months Ended | Nine Months Ended | |||
($ in thousands except per share amounts) | 2023 | 2022 | 2023 | 2022 |
Revenue | 2,468 | 57,091 | 2,468 | 141,263 |
Net income (loss) | (4,897) | 23,970 | 8,818 | 49,433 |
Earnings (loss) per share – basic | (0.10) | 0.48 | 0.18 | 0.99 |
Earnings (loss) per share – diluted | (0.10) | 0.39 | 0.18 | 0.82 |
Adjusted EBITDA (1) | (1,545) | 39,739 | 19,174 | 74,413 |
Total generation – (MWh) | 31,627 | 280,290 | 31,627 | 1,064,693 |
Total fuel consumption – (GJ) | 436,985 | 2,943,544 | 459,492 | 11,242,662 |
Average | 151.60 | 221.41 | 162.00 | 145.11 |
Average realized power price ($ per MWh) | 78.03 | 203.68 | 78.03 | 132.68 |
Total net debt (1) | 37,695 | 6,873 | 37,695 | 6,873 |
Total assets | 389,432 | 390,014 | 389,432 | 390,014 |
(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 third quarter of 2023, MAXIM recorded a net loss and negative Adjusted EBITDA(1) of
M2 CCGT EXPANSION COMMISSIONING
As previously reported, MAXIM has successfully commissioned the Combined Cycle Gas Turbine (“CCGT”) expansion of M2. Construction of the heat recovery technology required to expand M2 into a CCGT facility commenced in 2021 and the project was originally expected to commission in the fourth quarter of 2022. Commissioning was delayed due to the non-injury fire on
The CCGT expansion of M2 is expected to increase the maximum generation capacity of the HR Milner (“Milner”) site to 300 MW and has been designed to lower operations and maintenance costs per MWh. The CCGT expansion of M2 captures waste heat that would otherwise exhaust into the atmosphere and converts it into useful low carbon dispatchable electricity for the
This significant milestone completes the coal to gas energy transformation and repowering project at the Milner site which saw over
INSURANCE INFORMATION UPDATE
MAXIM reaffirms coverage for the non-injury fire incident subject to the terms and conditions of the Corporation’s property insurance policy, including business interruption provisions. As of the date of this press release, MAXIM has cumulatively submitted claims for
As previously reported, MAXIM submitted an additional insurance claim for a delay in start up related to the non-injury fire incident under its Course of Construction (“COC”) insurance policy, which includes a provision for Delay in Start Up (“DSU”) coverage relating to the CCGT expansion of M2. The Corporation has received a denial of coverage under this policy from the insurer and is currently evaluating its options in relation to this claim. No amounts have been recognized by the Corporation in relation to this claim.
NORMAL COURSE ISSUER BID UPDATE
MAXIM’s current Normal Course Issuer Bid (“NCIB”) program allows for the purchase and cancellation of up to 2,526,477 common shares of the Corporation (the “Shares”) with daily purchase limits of 2,296 Shares from
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 | Nine months ended | ||||||
( | 2023 | 2022 | 2023 | 2022 | |||
GAAP Measures from Condensed Consolidated Statement of Operations | |||||||
Net income (loss) | (4,897) | 23,970 | 8,818 | 49,433 | |||
Income tax expense (recovery) | (1,462) | 7,120 | 2,680 | 12,427 | |||
Finance expense, net | 1,292 | 1,779 | 3,909 | 5,219 | |||
Depreciation and amortization | 1,753 | 3,476 | 5,602 | 7,745 | |||
(3,314) | 36,345 | 21,009 | 74,824 | ||||
Adjustments: | |||||||
Other expense (income) | (5,229) | (2) | (43,757) | 39 | |||
Business interruption insurance claim | 5,500 | - | 40,022 | - | |||
Unrealized loss (gain) on commodity swaps | 1,324 | 3,248 | 1,412 | (841) | |||
Share-based compensation | 174 | 148 | 488 | 391 | |||
Adjusted EBITDA | (1,545) | 39,739 | 19,174 | 74,413 |
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 excludes 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 third quarter and first nine months 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, expected benefits and costs of the CCGT expansion of M2, including the reduction of carbon emissions by more than 60% and the increase in generation capacity to 300 MW, current expectation on MAXIM’s periodic outages resulting in intermittent generation of 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, insurance coverage, estimated final project costs, generation capacity following the expansion of M2 and reduction in carbon emissions.
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 that MAXIM may not generate full MW capacity from the CCGT expansion of M2 and that MAXIM may not be covered by insurance for the air inlet filter house repairs 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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