Ormat Technologies Inc. (NYSE:ORA) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 10:00 am ET


Ormat Technologies Inc. (NYSE:ORA) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Ormat Tech Q1 2020 Earnings Conference Call. [Operator Instructions] I'd now like to turn the conference over to Rob Fink. Please go ahead.

Rob Fink

Thank you, operator. Hosting the call today are Isaac Angel, Chief Executive Officer; Doron Blachar, President; Assi Ginzburg, Chief Financial Officer; and Smadar Lavi, Vice President of Corporate Finance and Investor Relations.

Before we begin, we would like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results or trends. Actual future results may differ materially from those projected as a result of certain risk factors and uncertainties. For a discussion of such risks and uncertainties, please see risk factors as described in Ormat Technologies' Annual Report on Form 10-K and quarterly reports on Form 10-Q that are filed with the SEC.

In addition, during the call, the Company will present non-GAAP financial measures such as adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures and management's reasons for presenting such information is set forth in the press release that was issued earlier this morning, as well as in the slides posted on the Company's website. Because these measures are not calculated in accordance with GAAP, they should not be considered in isolation from the financial statements prepared in accordance with GAAP.

Before I turn the call over to management, I would like to remind everyone that a slide presentation accompanying this call may be accessed on the Company's website at ormat.com under the Presentation link that's found on the Investor Relations tab.

With all that said, I would now like to turn the call over to Isaac Angel. Isaac, the call is yours.

Isaac Angel

Thank you very much, Rob, and good morning, everyone. Thank you for joining us today.

Starting with Slide 5, our financial results for the first quarter of 2020 demonstrate a strong start to the year, especially in terms of profitability. The world is currently facing a global health crisis, the impact and duration of which is still uncertain. In the first quarter, we took prompt steps to secure the safety of our employees, to optimize our supply chain and enhance our liquidity position in order to support our growth plans. These efforts, together with the inherent stable and long-term contracted portfolio for our electricity segment have enabled us to ease the impact of COVID-19 pandemic at this time. All our power plants and manufacturing facilities are operating as expected. Importantly, our efforts to streamline operations and optimize power generation at the plant level continues to produce benefits, leading to margin expansion and increased profitability.

Our gross profit and operating income also benefited from the receipt of $4.9 million related to the business