RE Royalties Announces Fiscal 2022 Year End Financial Results
May 2, 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 year ended December 31, 2022 ("FY2022"). For further information on these results please see the Company's Consolidated Financial Statements and Management's Discussion and Analysis for FY2022, filed on SEDAR at www.sedar.com.
Key financial and business highlights of FY2022 include:
Record annual revenue and income, including the share of income from the Company's investment in OCEP for FY2022, of $4,744,000, an increase of $2,819,000 or 146% over the prior year.
Annual gross profit, including changes in fair value of financial assets and share of income in OCEP for FY2022, of $4,413,000, an increase of $2,770,000 or 169% over the prior year.
Annual Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")1 for FY2022 of $2,010,000, an increase of $2,809,000 or 351% over the prior year.
Annual net loss after income tax for FY2022 of $434,000, a decrease of $1,696,000 or 80% over the prior year, and total comprehensive loss of $122,000, a decrease of $2,008,000 or 94% over the prior year.
Cash and cash equivalents, including restricted cash, of $7,580,000, at December 31, 2022.
Completed $23.4 million in investments encompassing solar, battery storage, renewable natural gas and energy efficiency.
Subsequent to the end of the year:
In the first quarter of 2023, the Company 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.
"We are very pleased with the results of our most recent completed financial year. Despite the unstable market conditions over the past year, we have continued to grow our investment portfolio with existing and new clients, and further increased our revenues, income and EBITDA during the year. Our business model and team has demonstrated the ability to create strong, growing, recurring and resilient cash flows, and to help renewable and clean technology companies grow their businesses. With the proceeds from our recent Series-3 Green Bonds and several potential transactions currently under due diligence, we expect to continue to build on our recent success over the coming quarters."
Grant of Stock Options, RSU and DSU
The Company also announces that it has granted an aggregate of 156,000 deferred share units, ("DSUs") to the directors of the Company and 144,000 restricted share units ("RSUs") to senior management of the Company. The RSUs have a three-year vesting period from the date of grant. In addition, the Company has granted 576,000 stock options to certain directors and officers of the Company. The stock options are exercisable at $0.65 per common share and are for a term of three years, subject to regulatory approval. Certain of these stock options are awarded on the basis of meeting certain performance metrics and will vest upon achievement of those metrics. The stock options, DSUs and RSUs are granted pursuant to the Company's stock option plans, which were approved by shareholders at the Company's annual general meeting.
Non-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.
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions 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 North America, Mexico, and Europe. 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:
RE Royalties Ltd.
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) 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, use of proceeds from the Private Placement, 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 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.