Western Wind Energy Announces $2 Million Net Income for the Year Ended Dec. 31, 2010 and Increase in Total Assets to $254 MillionBy Western Wind Energy, PRNE
Monday, April 11, 2011
Toronto Venture Exchange Symbol: "WND"
VANCOUVER, April 12, 2011 - Western Wind Energy Corp. ("Western Wind") announced today, its financial
results for the year ended December 31, 2010.
Highlights for the Year:
- Secured $299 million in project financing and commenced construction
for the 120MW Windstar Wind Project and the 10.5MW Kingman integrated
wind and solar project. Closing the financing for these projects
directly led to:
- The recognition of $11.5 million in new future income tax assets
as the GAAP test for realizing these assets in the near future is
now met; and
- First full year net income due to the future tax recovery of $11.5
million as the tax effect of previous net losses can now be
- Raised $6.9 million in new equity;
- Secured additional corporate debt totaling $14 million;
- Signed two Turbine Supply Agreements with Gamesa for Windstar and
- Secured additional prime wind and solar resource land in Tehachapi,
Subsequent to the Year End:
- Extended two loan agreements with institutional investors for a new
total of $2.8 million;
- Engaged Rabobank as its exclusive advisor to raise tax equity
- Executed a 40-year land lease with the Puerto Rico Land Authority for
a 400 acre parcel;
- Signed a 30 MW solar PPA with the Puerto Rico Electric Power
2010 FINANCIAL RESULTS
Western Wind generated it first profitable full year in 2010 with a net
income of $2,029,878, or four cents ($.04) per share for the year ended
December 31, 2010 and net loss of $5,023,162, or twelve cents ($0.12) per
share for the year ended December 31, 2009. The positive incomes relate to
the recognition of future tax recoveries of approximately $11.5 million for
continuing operations as the tax effect of previous net losses can now be
recognized as future tax assets given the future income expected from the
Windstar and Kingman projects.
Due to lower winds during the year, electricity production decreased 7%
to 55,001 MWh for the year ended December 31, 2010 compared to 58,859 MWh for
the year ended December 31, 2009. However an increase in available capacity
payments and higher natural gas prices which led to an increase in the
average Short Run Avoided Cost electricity selling prices, more than offset
the reduction in electricity production resulting in US dollar revenues
increasing 8% but a 10% drop in the value of the US Dollar resulted in a
overall 3% decrease in revenues to $2,717,417 compared to $2,798,496 for the
year ended December 31, 2009.
Expenses increased $3,229,613 (36%) to $12,210,811 for the year ended
December 31, 2010 compared to $8,981,198 for the same period in the prior
year due to a $4,607,890 increase in project development costs primarily from
a one-time bonus payable for the completion of the Windstar and Kingman
financing. The significant increase in project development costs was
partially offset by a $919,114 decrease in depreciation relating to the
extension of the Mesa right of way to 2037 and a $352,548 decrease in the
cost of operating Mesa and Windridge.
Loss from continuous operations before income tax was $9,454,001 compared
to $5,999,365 due to the increase in project development expenses but the
loss in 2010 was more than offset by the income tax recovery mentioned above
resulting in the net income from continuing operations of $2,029,878 or four
cents ($.04) per share compared to a net loss from continuing operations of
$5,023,162 for the previous year.
Western Wind's financial position continued to strengthen as Total Cash
increased from $2 million as at December 31, 2009 to $128 million as at
December 31, 2010 and total assets, including future income tax assets of $9
million, (net of approximately $2 million of future income tax liabilities),
increased from $29 million to $254 million. Shareholders equity improved
approximately 44% from $25 million last year to $36 million as at December
31, 2010 primarily due to the recognition of $11.5 million in future tax
recoveries as mentioned above.
The information in this news release should be read in conjunction with
the Consolidated Financial Statements for the year ended December 31, 2010,
prepared in accordance with Canadian generally accepted accounting
principles, and the Management Discussion and Analysis for the year ended
December 31, 2010. The financial statements and MD&A will be available at the
Company's website at www.westernwindenergy.com and at www.sedar.com.
About Western Wind Energy Corp.
Western Wind is a mid-tier vertically integrated renewable energy
production company that currently has by way of 100% direct ownership, over
500 wind turbines and 165 MW of net rated capacity in production or in
construction, and a further 311 MW of priority expansion development assets
in the States of California, Arizona and the Commonwealth of Puerto Rico. In
addition the company has a 1,300 MW California Development Initiative.
Western Wind is in the business of owning and acquiring land sites,
generation assets and technology for the production of electricity from wind
and solar energy. Management of Western Wind includes individuals involved in
the operations and ownership of utility scale wind energy facilities in
California since 1981.
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer and Director
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.
Certain statements in this press release constitute "forward-looking
statements" under applicable securities laws, which involve known and unknown
risks, uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or achievements
expressed or implied by such statements. Words such as "expects",
"anticipates", "intends", "projects", "plans", "will", "believes", "seeks",
"estimates", "should", "may", "could", and variations of such words and
similar expressions are intended to identify such forward-looking statements.
Such statements in this news release include, but are not limited to, the
Company's intended use of proceeds from the Offering. These statements are
based on management's current expectations and beliefs and actual events or
results may differ materially. There are many factors that could cause such
actual events or results expressed or implied by such forward-looking
statements to differ materially from any future results expressed or implied
by such statements. Such factors include, but are not limited to, the
Company's ability to profitably utilize the lands as planned and the other
factors discussed in the Company's annual report and annual information
contained in the Company's 20F Annual Report filed with the United States
Securities and Exchange Commission and securities regulators in Canada.
Forward-looking statements are based on current expectations and the Company
assumes no obligation to update such information to reflect later events or
developments, except as required by law.
N.B. All '$' symbols in this release are USD.
For further information: For further information: Lawrence Casse,
Investor Relations, +1-416-992-7227, alphaedgeincfajgmail.com
For further information: For further information: Lawrence Casse, Investor Relations, +1(416)992-7227, alphaedgeincfajgmail.com
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