TORONTO, June 04, 2019 (GLOBE NEWSWIRE) -- Blockchain Power Trust ("Blockchain Power" or the "Trust") BPWR has released its financial results for the three and twelve months ended December 31, 2018. All amounts in this release are expressed in Canadian Dollars unless otherwise indicated.
Highlights
- Record energy generation of 147,847 MWh for the year; an energy production increase of 95% from 2017. Energy generation of 39,510 MW for the fourth quarter of 2018; an energy production increase of 121% from the fourth quarter of 2017.
- Full year of operations from East Wind (formerly "OMV"), acquired at the end of December 2017, adding an additional 45 MW of capacity to the Trust's energy portfolio for an aggregate capacity of 81 MW from continuing operations.
- Record revenues of $17.3 million for the year; an increase of 42% from 2017 from continuing operations. Revenues of $4.1 million for the fourth quarter from continuing operations; an increase of 49% from the fourth quarter of 2017.
- Earned operating margin (revenue less cost of sales excluding depreciation) from continuing operations of $8.5 million for 2018. Earned operating loss (revenue less cost of sales excluding depreciation) from continuing operations of $0.06 million for the fourth quarter of 2018 (see reconciliation of operating margin under "Non-GAAP Measures").
- Net income from continuing operations of $5.6 million or $0.03 per Unit for the year compared to a net loss from continuing operations of $34.4 million or net loss of $0.70 per Unit in 2017. Net income from continuing operations of $11.8 million or $0.05 per Unit for the fourth quarter compared to a net loss from continuing operations of $30.3 million in the fourth quarter of 2017. The net income from continuing operations for the fourth quarter of 2018 included a non-cash reversal of over accrued losses in respect to the settlement of debt recognized in prior periods.
- Adjusted EBITDA from continuing operations of $5.9 million1 or $0.03 per Unit for the year compared to $3.2 million from continuing operations for 2017; an increase of 84% from 2017. Adjusted EBITDA from continuing operations of $0.4 million or $0.00 per Unit for the fourth quarter of 2018 compared to an adjusted loss of $1.1 million or $0.02 per Unit for the fourth quarter of 2017 (see reconciliation of adjusted EBITDA under "Non-GAAP Measures").
- Generated operating cash flows from continuing operations of $4.2 million or $0.02 per Unit for the year after net changes in working capital and $7.6 million before net changes in working capital. Generated operating cash flows from continuing operations of $4.1 million or $0.02 per Unit for the fourth quarter of 2018 after net changes in working capital and $0.2 million before changes in net working capital.
- An improvement of $78,600,000 in the Trust's working capital position.
J. Colter Eadie, Chief Executive Officer of Blockchain Power commented "Our renewable energy portfolio has performed consistently and according to plan this year. Local electricity markets continue to exhibit strength, under-pinned by positive long-term fundamentals. This past year was one of transition and we are pleased with the steps that have been made to date in improving the profitability and cash flow generation of the Trust."
For further information please contact:
| Ravi Sood Chairman +1 647-987-7663 rsood@blockchainpower.com | J. Colter Eadie Chief Executive Officer +40 736 372 724 jceadie@blockchainpower.com | Betty Soares Chief Financial Officer +1 416-803-6760 bsoares@blockchainpower.com |
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1 Includes foreign exchange gains (losses).
About Blockchain Power Trust
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, acquires interests in renewable energy, blockchain and cryptocurrency related 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 value creation, while preserving the capital value of its investment portfolio through investment in a range of operational green energy, blockchain and cryptocurrency related assets. 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 the Trust's issuer profile at www.sedar.com.
Forward-Looking Statements
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements are founded on the basis of expectations and assumptions made by the Trust. Details of the risk factors relating to Blockchain Power and its business are discussed under the heading "Business Risks and Uncertainties" in Blockchain Power's annual management's discussion & analysis dated June 4, 2019 a copy of which is available on Blockchain Power'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, Blockchain Power 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 TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
NON-GAAP MEASURES
The Trust has included certain non-GAAP measures to supplement its consolidated financial statements, which are presented in accordance with IFRS, including operating margin.
Operating margin is calculated as cost of sales from revenues as follows:
| For the three months ended | For the twelve months ended | |||||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||
| Total revenue | $ | 4,120,086 | $ | 2,765,700 | $ | 17,336,628 | $ | 12,242,373 | ||||
| Less: | ||||||||||||
| Cost of sales excluding depreciation | (4,176,609 | ) | (977,549 | ) | $ | (8,842,652 | ) | (4,105,267 | ) | |||
| Operating margin | $ | (56,523 | ) | $ | 1,788,151 | $ | 8,493,976 | $ | 8,137,106 | |||
The following is a reconciliation of adjusted EBITDA and adjusted EBITDA per share:
| For the three months ended | For the twelve months ended | ||||||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||
| Earnings (loss) for the period from continuing operations | $ | 11,843,055 | $ | (30,280,677 | ) | $ | 5,604,500 | $ | (34,365,889 | ) | |||
| Add-back: | |||||||||||||
| Interest and finance charges | 1,112,176 | 5,057,281 | 5,290,020 | 10,157,517 | |||||||||
| Income tax recovery | (4,959,742 | ) | (1,357,153 | ) | (5,395,480 | ) | (1,056,681 | ) | |||||
| Depreciation | 1,265,104 | 1,075,383 | 5,598,508 | 3,871,254 | |||||||||
| Fair value gain on debentures and conversion features | - | 4,830,404 | (1,184,249 | ) | 3,259,904 | ||||||||
| Gain (loss) on settlement of debt | (9,915,000 | ) | 1,786,079 | 3,035,322 | 2,729,403 | ||||||||
| Warrant revaluation gain (loss) | (1,277,941 | ) | 883,377 | (14,072,004 | ) | 1,634,073 | |||||||
| Impairment charge | 2,314,967 | 16,952,029 | 6,984,037 | 16,952,029 | |||||||||
| Adjusted EBITDA from continuing operations | $ | 382,619 | $ | (1,053,277 | ) | $ | 5,860,654 | $ | 3,181,610 | ||||
| Adjusted EBITDA per Unit from continuing operations | $ | 0.00 | $ | (0.02 | ) | $ | 0.03 | $ | 0.06 | ||||
The following is a reconciliation of operating cash from per Unit:
| For the three months ended | For the twelve months ended | |||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||
| Net used in operating activities of continuing operations | $ | 4,057,430 | $ | (4,924,531 | ) | $ | 4,150,731 | $ | (1,454,055 | ) |
| Weighted average number of Units | 230,158,418 | 48,997,457 | 222,711,103 | 48,997,457 | ||||||
| Operating cash flow from continuing operations per Unit | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.03 | ) |
The Trust believes that operating margin, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Trust. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other entities. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
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