All amounts in Canadian dollars unless otherwise stated
May 29, 2023 Vancouver, BC – RE Royalties Ltd. (TSX.V: RE) (OTCQX: RROYF) (“RE Royalties” or the “Company”), a global leader in renewable energy royalty-based financing, is pleased to announce the financial results for the first quarter ended March 31, 2023 (“Q1 2023”). For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for Q1 2023, filed on SEDAR at www.sedar.com.
Key financial and business highlights of Q1 2023 include:
Quarterly revenue and income, including the share of income from the Company's investment in OCEP2 for the three months ended March 31, 2023, of $1,824,000, an increase of $1,169,000 or 178% over the similar period in the prior year.
Quarterly gross profit, including changes in fair value of financial assets and share of income in OCEP2, of $1,790,000, an increase of $1,253,000 or 233% over the similar period in the prior year.
Quarterly Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for Q1 2023 of $1,346,000, an increase of $1,358,000 over the similar period in the prior year.
Quarterly net income after income tax of $558,000, an increase of $1,108,000 over the similar period in the prior year.
Cash and cash equivalents of $17,862,000, including restricted cash.
Completed the offering of its Series-3 Green Bonds and issued a total of 16,423 Canadian dollar denominated Green Bonds for aggregate gross proceeds of $16,423,000 and 1,242 United States dollar denominated Green Bonds for aggregate gross proceeds of US$1,242,000. The Series-3 Green Bonds will have a maturity date of January 30, 2028, and bear interest at a rate of 9% per annum, payable quarterly.
In February 2023, the Company acquired a gross revenue royalty on the 27 MWdc (20 MWac) Jackson Center Solar Project Phase 2 from Teichos Energy LLC. The Company provided a US$1.8 million letter of credit on behalf of Teichos to meet their interconnection requirements.
Subsequent to the end of Q1 2023:
In May 2023, the Company acquired a royalty on 100MW of output from a wind project located in Alberta, Canada ("Alberta Wind Project") for $940,000 Canadian dollars. The Alberta Wind Project is owned by a major independent power producer with a power purchase agreement with a large corporate off taker. The Company will receive average annual royalty payments of approximately $132,000 per year, payable monthly for a period of 12 years.
Teichos Energy LLC also sold the Jackson Center Solar Project Phase 1 and 2, and subsequently repaid the outstanding loan and repurchased the royalty for US$1.15 million.
“Q1 2023 saw the highest quarterly revenues and income in our corporate history and represent the fifth consecutive quarter of delivering strong revenue and income, and EBITDA growth. Despite weak capital market conditions over the past few quarters, our investment portfolio continue to generate stable, recurring and resilient cash flows. With the additional capital raised from our recently completed Series 3 Green Bonds and a robust backlog of royalty investment opportunities currently under due diligence, we expect to continue to build on our recent success over the coming quarters.”
Conference Call on Thursday, June 1, 2023
Management will be hosting a first quarter conference call and live webcast to discuss its first quarter results. You can register for the webcast as follows:
Date: Thursday June 1, 2023
Time: 1:00pm PT (4:00pm ET)
Teams Link: Click Here or:
Meeting ID: 232 167 896 137
Or call in (audio only): (778)-725-6875
Phone Conference ID: 866 975 615#
1Non-GAAP Performance Measures
This document contains presentation of Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) as a non-GAAP financial measure. This measure may differ from similar measures used by, and may not be comparable to such measures as reported by, other companies. The Company believes that EBITDA is commonly used by certain investors, in conjunction with conventional IFRS measures, to enhance their understanding of the Company’s performance. These measures have been derived from the Company’s financial statements and applied on a consistent basis. Non-GAAP measures are intended to provide additional information, not to replace IFRS measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of our MD&A, which are available on Sedar or on the Company’s website.
2 OCEP refers to Outagamie Clean Energy Partners. Please refer to the Company’s financial statements for further details.
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties from renewable energy facilities and technologies by providing a non-dilutive financing solution to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, hydro, battery storage, energy efficiency and renewable natural gas projects in Canada, United States and Mexico. The Company’s business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
For further information, please contact:
Investor and Media Contact:
Melanee Henderson, Investor Relations
T: (778) 373-6731 TF 800-667-2114
Talia Beckett, VP of Communications and Sustainability T: (778) 374‐2000
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company’s future outlook and anticipated events or results and may include statements regarding the Company’s financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company’s most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company’s profile page at www.sedar.com.