Primary Energy Recycling Corp.(PRI.TO: Quote), a company involved in the recycling of recoverable heat and byproduct fuels, Friday reported a wider loss for its second quarter in comparison to the same year-ago quarter, reflecting higher expenses, particularly a management termination fee and a slump in total revenue from last year.
The company said it is declaring an annual sustainable dividend of US$0.20 per share, payable quarterly, in view of its expected renewal of the Cokenergy contract, which expires in the third quarter of 2013.
In its second quarter, Primary Energy' net loss widened to $5.45 million, or $0.09 loss per share from $0.7 million last year. Total expenses for the quarter touched $18.5 million, a substantial increase from last year's $13 million, management termination fees totaled $6 million which was non-existent last year.
On an adjusted basis, EBITDA were $8.5 million in the current quarter down from $9.2 million in the comparable period prior year. The adjustment majorly included the management fee incurred and which totaled $6 million.
Total revenues for Primary Energy decreased by 5.6 percent to $12.6 million from $13.3 million last year, reflecting the non-functionality of its North Lake facility for the entire month of May 2012 due to a planned turbine upgrade, said Primary Energy. The company's revenue, however beat analyst estimates by a slight margin.
Analysts polled by Thomson Reuters expected the company to report a revenue of $12.4 million in its second quarter. Analyst estimates typically exclude special items.
During the quarter, the company reported an operating loss of $5.4 million compared with an operating income of $1.4 million for the second quarter prior year.
On Thursday, Primary Energy Recycling Corp closed at $4.60 on the TSX.
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by RTT Staff Writer
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