Mirant Reports Third Quarter 2009 Results
November 06 2009 - 7:30AM
PR Newswire (US)
ATLANTA, Nov. 6 /PRNewswire-FirstCall/ -- -- Income from continuing
operations of $55 million compared to income from continuing
operations of $1.607 billion for the third quarter of 2008 --
Adjusted EBITDA from continuing operations of $311 million compared
to adjusted EBITDA from continuing operations of $278 million for
the third quarter of 2008 -- Reduced 2009 adjusted EBITDA guidance
from $873 million to $860 million -- Increased 2010 adjusted EBITDA
guidance from $570 million to $617 million Mirant Corporation
(NYSE:MIR) today reported income from continuing operations for the
third quarter of 2009 of $55 million compared to income from
continuing operations of $1.607 billion for the same period in
2008. Results for 2009 include unrealized losses, principally on
hedges, of $174 million compared to unrealized gains, again
principally on hedges, of $1.395 billion for 2008. Per share
results from continuing operations for the third quarter of 2009
were $0.38 per share, compared to $8.69 per share from continuing
operations for the third quarter of 2008. Net Income to Adjusted
Income from Continuing Operations and Adjusted EBITDA
------------------ ------------------ Quarter Ending Quarter Ending
September 30, 2009 September 30, 2008 (in millions except per
share) ------------------ ------------------ Per Per Share(1)
Share(1) ------- ------- Net income $55 $0.38 $1,607 $8.69
Unrealized (gains) losses 174 1.19 (1,395) (7.54) Other 9 0.06 4
0.02 ------- ------- ------- ------- Adjusted income from
continuing operations $238 $1.63 $216 $1.17 ======= =======
Provision (benefit) for income taxes 3 (5) Interest expense, net 33
32 Depreciation and amortization 37 35 ------- ------- Adjusted
EBITDA $311 $278 ======= =======
-------------------------------------------------------------------------
(1) Per share amounts for 2009 are based on diluted weighted
average shares outstanding of 146 million. Per share amounts for
2008 are based on diluted weighted average shares outstanding of
185 million. Mirant reported adjusted income from continuing
operations of $238 million for the third quarter of 2009, or $1.63
per diluted share, compared to adjusted income from continuing
operations of $216 million for the same period of 2008, or $1.17
per diluted share. Adjusted income from continuing operations
excludes unrealized gains and losses and other non-recurring items.
The quarter over quarter increase resulted principally from higher
realized gross margins. Adjusted EBITDA from continuing operations
for the third quarter of 2009 was $311 million, compared to
adjusted EBITDA from continuing operations of $278 million for the
third quarter of 2008. The increase in adjusted EBITDA resulted
principally from higher realized value of hedges and higher
realized results from proprietary trading activities, partially
offset by lower energy gross margins from generation. Net cash
provided by operating activities of continuing operations for the
third quarter of 2009 was $290 million compared to net cash
provided by operating activities of continuing operations of $632
million for the same period in 2008. The decrease was primarily the
result of significant cash collateral returned in the third quarter
of 2008. Nine Months 2009 versus Nine Months 2008 Mirant reported
income from continuing operations of $598 million for the first
nine months of 2009, compared to income from continuing operations
of $621 million for the same period in 2008. Results for 2009
include unrealized gains, principally on hedges, of $66 million
compared to unrealized gains, again principally on hedges, of $218
million for 2008. Per share results from continuing operations for
the first nine months of 2009 were $4.12 per share, compared to
$2.86 per share from continuing operations for the same period in
2008. Net Income to Adjusted Income from Continuing Operations and
Adjusted EBITDA ------------------ ------------------ Year to Date
Year to Date (in millions except per share) September 30, 2009
September 30, 2008 ------------------ ------------------ Per Per
Share(1) Share(1) ------- ------- Net income $598 $4.12 $672 $3.10
Income from discontinued operations - - 51 0.24 ------ -------
------ ------- Income from continuing operations 598 4.12 621 2.86
Unrealized gains (66) (0.45) (218) (1.00) Bankruptcy charges and
legal contingencies (62) (0.43) 4 0.02 Other 14 0.10 33 0.15 ------
------- ------ ------- Adjusted income from continuing operations
$484 $3.34 $440 $2.03 ======= ======= Provision for income taxes 11
5 Interest expense, net 102 79 Depreciation and amortization 109
108 ------ ------ Adjusted EBITDA $706 $632 ====== ======
--------------------------------------------------------------------------
(1) Per share amounts for 2009 are based on diluted weighted
average shares outstanding of 145 million. Per share amounts for
2008 are based on diluted weighted average shares outstanding of
217 million. Mirant reported adjusted income from continuing
operations of $484 million for the first nine months of 2009, or
$3.34 per diluted share, compared to adjusted income from
continuing operations of $440 million for the same period in 2008,
or $2.03 per diluted share. Adjusted income from continuing
operations excludes unrealized gains, the MC Asset Recovery
settlement with Southern Company and other non-recurring items. The
period over period increase resulted principally from higher
realized gross margins partially offset by higher net interest
expense. Adjusted EBITDA from continuing operations for the first
nine months of 2009 was $706 million, compared to adjusted EBITDA
from continuing operations of $632 million for the same period in
2008. The period over period increase resulted principally from
higher realized value of hedges and higher realized results from
proprietary trading activities, partially offset by lower energy
gross margins from generation. Net cash provided by operating
activities of continuing operations during the first nine months of
2009 was $721 million compared to net cash provided by operating
activities of continuing operations of $587 million in the same
period of 2008. The increase was primarily the result of working
capital changes and higher realized gross margins. As of September
30, 2009, Mirant had cash and cash equivalents of $2.029 billion,
of which $574 million was restricted at Mirant North America and
its subsidiaries and not available for distribution to Mirant. The
company expects Mirant North America will distribute approximately
$116 million to its parent, Mirant Americas Generation, in November
2009. Although the company expects Mirant North America to remain
in compliance with its financial covenants, it is likely it will be
restricted from making distributions in future periods, beyond
permitted interest payable by its parent, primarily because of the
significant capital expenditure program underway to comply with the
Maryland Healthy Air Act. Upon completion of its capital
expenditure program, and after such expenditures no longer affect
the free cash flow calculation, Mirant North America is expected to
be able again to make distributions. Mirant does not expect the
potential restriction on future distributions to have any effect on
its operations. As of September 30, 2009, Mirant had total
outstanding debt of $2.633 billion. Guidance Mirant today reduced
its 2009 adjusted EBITDA guidance from $873 million to $860 million
and increased its 2010 adjusted EBITDA guidance from $570 million
to $617 million. "In these challenging economic times during which
prices for commodities, including electricity, have remained at
relatively low levels, our strategy of hedging has mitigated the
impact on Mirant in 2009 and somewhat in 2010," said Edward R.
Muller, chairman and chief executive officer. "Hedging, together
with our balance sheet that provides adequate liquidity for our
business, has kept us financially healthy." Earnings Call Mirant is
hosting an earnings call today to discuss its third quarter 2009
financial results. The call will be held from 9-10 a.m. EST. The
conference call can be accessed via the investor relations section
of the company's website at http://www.mirant.com/ or analysts are
invited to listen to the call by dialing 888 213 3710
(International 913 312 0654) and entering pass code 4279837.
Presentation slides for the analyst call have been posted to the
company's website. The presentation may include certain non-GAAP
financial measures as defined under SEC rules. In such event, a
reconciliation of those measures to the most directly comparable
GAAP measures will also be available via the investor relations
section of the company's website at http://www.mirant.com/. A
recording of the event will be available for playback on the
company's website beginning today at noon EST. A replay also will
be available by dialing 888 203 1112 (International 719 457 0820)
and entering the pass code 4279837. Mirant is a competitive energy
company that produces and sells electricity in the United States.
Mirant owns or leases approximately 10,112 megawatts of electric
generating capacity. The company operates an asset management and
energy marketing organization from its headquarters in Atlanta. For
more information, please visit http://www.mirant.com/. Regulation G
Reconciliations Net Income to Adjusted Income from Continuing
Operations and Adjusted EBITDA ------------------
------------------ Quarter Ending Quarter Ending (in millions
except per share) September 30, 2009 September 30, 2008
------------------ ------------------ Per Per Share(1) Share(1)
------- ------- Net income $55 $0.38 $1,607 $8.69 Unrealized
(gains) losses 174 1.19 (1,395) (7.54) Impairment losses 14 0.10 -
- Lower of cost or market inventory adjustments, net (6) (0.04) - -
Other 1 - 4 0.02 ------ ------- ------- ------- Adjusted income
from continuing operations $238 $1.63 $216 $1.17 ======= =======
Provision (benefit) for income taxes 3 (5) Interest expense, net 33
32 Depreciation and amortization 37 35 ------ ------- Adjusted
EBITDA $311 $278 ====== =======
----------------------------------------------------------------------
(1) Per share amounts for 2009 are based on diluted weighted
average shares outstanding of 146 million. Per share amounts for
2008 are based on diluted weighted average shares outstanding of
185 million. Adjusted income from continuing operations and
adjusted EBITDA are non-GAAP financial measures. Management and
some members of the investment community utilize adjusted income
from continuing operations and adjusted EBITDA to measure financial
performance on an ongoing basis. These measures are not recognized
in accordance with GAAP and should not be viewed as an alternative
to GAAP measures of performance. In evaluating these adjusted
measures, the reader should be aware that in the future Mirant may
incur expenses similar to the adjustments set forth above. Net
Income to Adjusted Income from Continuing Operations and Adjusted
EBITDA ------------------ ------------------ Year to Date Year to
Date (in millions except per share) September 30, 2009 September
30, 2008 ------------------ ------------------ Per Per Share(1)
Share(1) ------- ------- Net income $598 $4.12 $672 $3.10 Income
from discontinued operations - - 51 0.24 ------ ------- ------
------- Income from continuing operations 598 4.12 621 2.86
Unrealized gains (66) (0.45) (218) (1.00) Bankruptcy charges and
legal contingencies (62) (0.43) 4 0.02 Severance and bonus plan for
dispositions 13 0.09 14 0.06 Impairment losses 14 0.10 - - Lovett
shut down costs 4 0.03 10 0.05 Lower of cost or market inventory
adjustments, net (17) (0.12) - - Loss on repurchase of MAG 2011
bonds - - 8 0.04 Other - - 1 - ------ ------- ------ -------
Adjusted income from continuing operations $484 $3.34 $440 $2.03
======= ======= Provision for income taxes 11 5 Interest expense,
net 102 79 Depreciation and amortization 109 108 ------ ------
Adjusted EBITDA $706 $632 ====== ======
-------------------------------------------------------------------------
(1) Per share amounts for 2009 are based on diluted weighted
average shares outstanding of 145 million. Per share amounts for
2008 are based on diluted weighted average shares outstanding of
217 million. Adjusted income from continuing operations and
adjusted EBITDA are non-GAAP financial measures. Management and
some members of the investment community utilize adjusted income
from continuing operations and adjusted EBITDA to measure financial
performance on an ongoing basis. These measures are not recognized
in accordance with GAAP and should not be viewed as an alternative
to GAAP measures of performance. In evaluating these adjusted
measures, the reader should be aware that in the future Mirant may
incur expenses similar to the adjustments set forth above. Current
Expected Cash Flow from Operations to Projected Adjusted EBITDA
Guidance For the years ending December 31, 2009 and 2010
----------------- ----------------- (in millions) Year Ending Year
Ending December 31, 2009 December 31, 2010 -----------------
----------------- Net cash provided by operating activities of
continuing operations $693 $316 Emission allowance sales proceeds
21 7 Capitalized interest (72) (6) ----------------
---------------- Adjusted net cash provided by operating activities
$642 $317 Interest, net (including amounts capitalized) 193 186
Income taxes paid (refund) 9 (20) Working capital and other changes
16 134 ---------------- ---------------- Adjusted EBITDA $860 $617
================ ================
-------------------------------------------------------------------------
Adjusted EBITDA and adjusted net cash provided by operating
activities are non-GAAP financial measures. Management and some
members of the investment community utilize adjusted EBITDA and
adjusted net cash provided by operating activities to measure
financial performance on an ongoing basis. These measures are not
recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance. Previous Expected Cash
Flow from Operations to Projected Adjusted EBITDA Guidance For the
years ending December 31, 2009 and 2010 -----------------
----------------- (in millions) Year Ending Year Ending December
31, 2009 December 31, 2010 ----------------- ----------------- Net
cash provided by operating activities of continuing operations $671
$389 Emission allowance sales proceeds 21 9 Capitalized interest
(68) (5) ---------------- ---------------- Adjusted net cash
provided by operating activities $624 $393 Interest, net (including
amounts capitalized) 191 178 Income taxes paid (refund) 12 (20)
Working capital and other changes 46 19 ----------------
---------------- Adjusted EBITDA $873 $570 ================
================
------------------------------------------------------------------------
Adjusted EBITDA and adjusted net cash provided by operating
activities are non-GAAP financial measures. Management and some
members of the investment community utilize adjusted EBITDA and
adjusted net cash provided by operating activities to measure
financial performance on an ongoing basis. These measures are not
recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance. Cautionary Language
Regarding Forward-Looking Statements Some of the statements
included herein involve forward-looking information. Mirant
cautions that these statements involve known and unknown risks and
that there can be no assurance that such results will occur. There
are various important factors that could cause actual results to
differ materially from those indicated in the forward-looking
statements, such as, but not limited to, legislative and regulatory
initiatives regarding deregulation, regulation or restructuring of
the industry of generating, transmitting and distributing
electricity (the "electricity industry"); changes in state, federal
and other regulations affecting the electricity industry (including
rate and other regulations); changes in, or changes in the
application of, environmental and other laws and regulations to
which Mirant and its subsidiaries and affiliates are or could
become subject; the failure of Mirant's plants to perform as
expected, including outages for unscheduled maintenance or repair;
environmental regulations that restrict Mirant's ability or render
it uneconomic to operate its business, including regulations
related to the emission of CO2 and other greenhouse gases;
increased regulation that limits Mirant's access to adequate water
supplies and landfill options needed to support power generation or
that increases the costs of cooling water and handling,
transporting, and disposing off-site of ash and other byproducts;
changes in market conditions, including developments in the supply,
demand, volume and pricing of electricity and other commodities in
the energy markets, including efforts to reduce demand for
electricity, and the extent and timing of the entry of additional
competition in our markets; continued poor economic and financial
market conditions, including impacts on financial institutions and
other current and potential counterparties and negative impacts on
liquidity in the power and fuel markets in which Mirant and its
subsidiaries hedge and transact; increased credit standards, margin
requirements, market volatility or other market conditions that
could increase Mirant's obligations to post collateral beyond
amounts that are expected, including additional collateral costs
associated with over-the-counter hedging activities as a result of
proposed over-the-counter regulation; Mirant's inability to access
effectively the over-the-counter and exchange-based commodity
markets or changes in commodity market conditions and liquidity,
including as a result of proposed over-the-counter regulation,
which may affect Mirant's ability to engage in asset management,
proprietary trading and fuel oil management activities as expected,
or result in material extraordinary gains or losses from open
positions; deterioration in the financial condition of Mirant's
counterparties and the resulting failure to pay amounts owed to
Mirant or to perform obligations due to Mirant beyond collateral
posted; hazards customary to the power generation industry and the
possibility that Mirant may not have adequate insurance to cover
losses resulting from such hazards or the inability of Mirant's
insurers to provide agreed upon coverage; price mitigation
strategies employed by ISOs or RTOs that reduce Mirant's revenue
and may result in a failure to compensate Mirant's generation units
adequately for all their costs; changes in the rules used to
calculate capacity and energy payments; legal and political
challenges to the rules used to calculate capacity, energy and
ancillary services payments; volatility in Mirant's gross margin as
a result of Mirant's accounting for derivative financial
instruments used in its asset management, proprietary trading and
fuel oil management activities and volatility in its cash flow from
operations resulting from working capital requirements, including
collateral, to support its asset management, proprietary trading
and fuel oil management activities; Mirant's ability to enter into
intermediate and long-term contracts to sell power and to obtain
adequate supply and delivery of fuel for its facilities, at
Mirant's required specifications and on terms and prices acceptable
to it; the failure to utilize new or advancements in power
generation technologies; the inability of Mirant's operating
subsidiaries to generate sufficient cash flow to support its
operations; the potential limitation or loss of Mirant's net
operating losses notwithstanding the implementation of a
stockholder rights plan; Mirant's ability to borrow additional
funds and access capital markets; strikes, union activity or labor
unrest; Mirant's ability to obtain or develop capable leaders and
its ability to retain or replace the services of key employees;
weather and other natural phenomena, including hurricanes and
earthquakes; the cost and availability of emissions allowances;
curtailment of operations and reduced prices for electricity
resulting from transmission constraints; Mirant's inability to
complete construction of Mirant's emissions reduction equipment by
January 2010 to meet the requirements of the Maryland Healthy Air
Act, which may result in reduced unit operations and reduced cash
flows and revenues from operations; Mirant's ability to execute its
business plan in California, including entering into new tolling
arrangements in respect of its existing generating facilities and,
in respect of its Marsh Landing generating facility, (i) obtaining
the permits necessary for construction and operation of the
generating facility, (ii) securing the necessary project financing
for construction of the generating facility, and (iii) completing
the construction of the generating facility by May 2013; Mirant's
relative lack of geographic diversification in revenue sources
resulting in concentrated exposure to the Mirant Mid-Atlantic
market; the ability of lenders under Mirant North America's
revolving credit facility to perform their obligations; war,
terrorist activities, cyberterrorism and inadequate cybersecurity,
or the occurrence of a catastrophic loss; the failure to provide a
safe working environment for Mirant's employees and visitors
thereby increasing Mirant's exposure to additional liability, loss
of productive time, other costs, and a damaged reputation; Mirant's
consolidated indebtedness and the possibility that Mirant or its
subsidiaries may incur additional indebtedness in the future;
restrictions on the ability of Mirant's subsidiaries to pay
dividends, make distributions or otherwise transfer funds to
Mirant, including restrictions on Mirant North America contained in
its financing agreements and restrictions on Mirant Mid-Atlantic
contained in its leveraged lease documents, which may affect
Mirant's ability to access the cash flow of those subsidiaries to
make debt service and other payments; the failure to comply with,
or monitor provisions of Mirant's loan agreements and debt may lead
to a breach and, if not remedied, result in an event of default
thereunder, which would limit access to needed capital and damage
Mirant's reputation and relationships with financial institutions;
and the disposition of the pending litigation described in Mirant's
Form 10-Q for the quarter ended September 30, 2009, filed with the
Securities and Exchange Commission. Mirant undertakes no obligation
to update publicly or revise any forward-looking statements to
reflect events or circumstances that may arise. The foregoing
review of factors that could cause Mirant's actual results to
differ materially from those contemplated in the forward-looking
statements included in this news release should be considered in
connection with information regarding risks and uncertainties that
may affect Mirant's future results included in Mirant's filings
with the Securities and Exchange Commission at http://www.sec.gov/.
Stockholder inquiries: 678 579 7777 DATASOURCE: Mirant Corporation
CONTACT: Investor Relations and Media contacts: Steve Himes,
+1-678-579-3655, , or Audrey Emerson, +1-678-579-3231, Web Site:
http://www.mirant.com/
Copyright
Mirion Technologies (NYSE:MIR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mirion Technologies (NYSE:MIR)
Historical Stock Chart
From Jul 2023 to Jul 2024