Recurring revenue increases 310% based on increased energy generation
VANCOUVER, BC / ACCESSWIRE / November 27, 2024 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company"), a North American owner, operator and developer of renewable energy projects, reported its financial results for the three months ended September 30, 2024 (Q1 FY2025). This earnings release should be read in conjunction with the Company's consolidated financial statements and management's discussion and analysis, which are available on the Company's website at www.revolve-renewablepower.com and have been posted on SEDAR+ at www.sedarplus.ca.
"The first quarter marked a significant inflection point for Revolve as our team accelerated our transition to an owner and operator of renewable energy projects with a focus on long term recurring revenue and cashflow for the business," said CEO Myke Clark. "Our recurring revenue stream has increased more than 300% and is targeted to generate in excess of US$2 million on an annualized basis. In addition to our operating assets, we have advanced the 20 MW/80 MWh Vernal BESS, 49.5 MW Primus Wind and 30 MW Alberta projects to the stage that all three are expected to reach "ready to build" status by the end of 2025. Our near-term project pipeline and recurring revenue growth are supported by the longer-term investments in utility scale projects we are developing across North America, with expected continued progress on the Bouse & Parker project by ENGIE, where Revolve has the potential to generate a further US$50m+ in revenues over the coming years."
Key financial highlights (all figures reported in USD):
Recurring revenue streams from operating assets of $448,442, an increase of 310% from recurring revenue of $109,880 in Q1, FY2024. On a full year basis, recurring revenue from these operating assets is expected to range between $1,800,000 to $2,200,000.
Energy Production of 2,893,980 kWh from operating assets, an increase of 384% from 597,695 kWh in Q1, FY2024.
The significant increase in recurring revenue is the result of an accelerated scaling of the Company's operational portfolio.
Total revenue of $448,842, compared to total revenue of $1,199,880 in Q1, FY2024. Total revenues in Q1, FY2024 were higher due to the receipt of a milestone payment related to sale of the Parker solar project.
Gross profit of $300,573, representing a gross profit margin of 67%. The Company expects to improve the gross margin on its operating asset portfolio as it realizes operating efficiencies from the scaling of the portfolio.
The net loss for the quarter was $1,095,599, compared to net income of $921,776 in Q1, FY2024, the result of continued investment in developing Revolve's project development portfolio and capabilities.
Cash and security deposits on the balance sheet as at September 30, 2024 was $2,680,821.
Key business highlights:
Utility scale projects under development stand at 3,015MW's as at the date of this release. The Company made significant progress on its 20MW/80MWh Vernal BESS and 49.5MW Primus Wind projects during the period, which have now moved to late-stage development status and are expected to reach ready to build by the end of 2025.
In addition to this the Company recently acquired a 30MW solar development project in Alberta. Development works have been accelerated and a 20MW first phase of this project is also expected to be ready to build by the end of 2025.
Distributed Generation ("DG") assets under construction remained at 3.45MW with permitting work continuing on the 3MW CHP project and final commissioning work now being completed on the 450kWp rooftop solar project, both located in Mexico.
The Company's DG project pipeline remained stable at c.150MW as at the date of this release. The Company continues to remain focused on prioritizing near term opportunities to sign PPA's for new projects from this pipeline.
"Revolve continues to assess additional acquisition opportunities to accelerate our near-term recurring revenue stream even more aggressively. This focused strategy of combining near-term, cash flowing operating projects with longer-term, larger utility scale development provides investors with a diversified investment opportunity that is unique in the current market environment," concluded Clark.
For further information contact:
Myke Clark, CEO
IR@revolve-renewablepower.com
778-372-8499
About Revolve
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar, hydro and battery storage projects in the US, Canada and Mexico. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. Revolve's portfolio includes the following:
Operating Assets: 11MW (net) of operating assets under long term power purchase agreements across Canada and Mexico covering wind, solar, battery storage and hydro generation;
Under Construction: a 3MW CHP project and a 450kWp rooftop solar project that are both under construction and expected to be operational later this year; and
Development: a diverse portfolio of utility scale development projects across the US, Canada and Mexico with a combined capacity of over 3,000MWs as well as a 140MW+ distributed generation portfolio that is under development.
Revolve has an accomplished management team with a demonstrated track record of taking projects from "greenfield" through to "ready to build" status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US, Canada and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG assets.
Non-IFRS Measures
This press release refers to certain non-IFRS measures including Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"). Non-IFRS measures and industry metrics do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. The term EBITDA consists of net loss or gain and excludes interest, taxes, depreciation and amortization. The most directly comparable measure to EBITDA calculated in accordance with IFRS is net gain or net loss. The term EBITDA margin consists of the percentage of net loss or gain and excludes interest, taxes, depreciation and amortization. These measures, have limitations, and are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our filings on SEDAR+ at sedarplus.ca and posted on our website.
Financial Projections
The Company's financial projections are inherently speculative and may prove to be inaccurate. Any financial projections provided in this press release have been prepared in good faith based upon the estimates and assumptions considered reasonable by management. However, projections are no more than estimates of possible events and should not be relied upon to predict the results that the Company may attain. Future oriented financial information in this press release includes statements with respect to forecasted revenues and EBITDA that are expected to be generated by the Project. There is a risk that the assumptions related to these revenue and EBITDA forecasts may not be met and that the Project will not meet the conditions to start construction. The projections are based upon several estimates and assumptions and have not been examined, reviewed or compiled by independent accountants or other third-party experts, including assumptions with respect to the anticipated expenses and future revenues from the Project. These assumptions may vary from the actual results. Accordingly, there is no assurance that future events will correspond to management's assumptions for the Project. Any variations of actual results from projections related to the Project may be material and adverse. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the reasonable assumptions of the Company and management as at the date hereof. Our actual financial position and results of operations and the Project may differ materially from management's current expectations and, as a result, our revenue, profitability, EBITDA may differ materially from any revenue, and profitability profiles provided in this press release. Such information is presented for illustrative purposes only and may not be an indication of our actual financial position or results of operations.
Revolve does not provide reconciliations for forward-looking non-GAAP financial measures as Revolve is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or number of various events that have not yet occurred, are out of Revolve's control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, Revolve is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Forward Looking Information
The forward-looking statements contained in this news release constitute 'forward-looking information' within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements"). The words "will", "expects", "estimates", "projections", "forecast", "intends", "anticipates", "believes", "targets" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include statements with respect to the proposed acquisition of the Project. This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions considering our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Material factors underlying forward-looking information and management's expectations include: the receipt of applicable regulatory approvals; the absence of material adverse regulatory decisions being received and the expectation of regulatory stability; the absence of any material equipment breakdown or failure; availability of financing on commercially reasonable terms and the stability of credit ratings of the Company and its subsidiaries; the absence of unexpected material liabilities or uninsured losses; the continued availability of commodity supplies and stability of commodity prices; the absence of interest rate increases or significant currency exchange rate fluctuations; the absence of significant operational, financial or supply chain disruptions or liability, including relating to import controls and tariffs; the continued ability to maintain systems and facilities to ensure their continued performance; the absence of a severe and prolonged downturn in general economic, credit, social or market conditions; the successful and timely development and construction of new projects; the absence of capital project or financing cost overruns; sufficient liquidity and capital resources; the continuation of long term weather patterns and trends; the absence of significant counterparty defaults; the continued competitiveness of electricity pricing when compared with alternative sources of energy; the realization of the anticipated benefits of the Company's acquisitions and joint ventures; the absence of a change in applicable laws, political conditions, public policies and directions by governments, materially negatively affecting the Company; the ability to obtain and maintain licenses and permits; maintenance of adequate insurance coverage; the absence of material fluctuations in market energy prices; the absence of material disputes with taxation authorities or changes to applicable tax laws; continued maintenance of information technology infrastructure and the absence of a material breach of cybersecurity; the successful implementation of new information technology systems and infrastructure; favourable relations with external stakeholders; our ability to retain key personnel; our ability to maintain and expand distribution capabilities; and our ability to continue investing in infrastructure to support our growth.
Such uncertainties and risks may include, among others, market conditions, delays in obtaining or failure to obtain required regulatory approvals in a timely fashion, or at all; the availability of financing, fluctuating prices, the possibility of project cost overruns, mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and unanticipated costs and expenses, variations in the cost of energy or materials or supplies or environmental impacts on operations, disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR+ at sedarplus.ca. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required by law.
Such statements and information reflect the current view of the Company. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company does not undertake to update this information at any time except as required in accordance with applicable laws.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE: Revolve Renewable Power Corp.
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