TORONTO, May 30, 2018 (GLOBE NEWSWIRE) -- Blockchain Power Trust (“ Blockchain Power ” or the “ Trust ”) (TSXV:BPWR.UN) today released its financial results for the three months ended March 31, 2018. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
Highlights
- Revenue of $5.1 million for the first quarter, an increase of 82% from the first quarter of 2017.
- Produced 45,354 MWh of energy for the first quarter generating revenue of $2.4 million from the sale of electricity and $2.7 million from green certificates, a production increase of 132% from the first quarter of 2017.
- Earned operating margin (revenue less cost of sales excluding depreciation) of $2.9 million for the quarter, an increase of 46% over the operating margin of $2.0 million for the first quarter of 2017 (see reconciliation of operating margin under “Non-GAAP Measures”).
- Recorded a loss of $5.4 million during the quarter (2017 - loss of $3.8 million) with basic and diluted loss of $0.03 per unit in the capital of the Trust (“Unit”) (2017 - loss of $0.08 per Unit).
- Adjusted EBITDA of $0.02 (1) per Unit (see reconciliation of adjusted EBITDA under “non-GAAP Measures).
- Acquired crypto-currency mining equipment with aggregate computing power of 27.5 PH/s. Subsequent to quarter end, Installed and operating 16.5 PH/s of equipment with the remaining 11 PH/s of capacity expected to be online in June 2018.
J. Colter Eadie, Chief Executive Officer of Blockchain Power commented “We are very pleased with our progress in the first quarter of 2018. With the addition of the OMV wind project at the end of 2017 and the completion of our financing in January, we have approximately doubled our power generation capacity and at the same time materially reduced our indebtedness thereby strengthening our balance sheet, and putting us in a position to service all remaining obligations and fund additional growth in our business.”
For further information please contact:
| Ravi Sood Chairman +1 647-987-7663 rsood@blockchainpower.com | J. Colter Eadie Chief Executive Officer +351 938 810 979 jceadie@blockchainpower.com | Betty Soares Chief Financial Officer +1 416-803-6760 bsoares@blockchainpower.com |
About Blockchain Power Trust
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, acquires interests in renewable energy, blockchain and cryptocurrency related assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable value creation, while preserving the capital value of its investment portfolio through investment in a range of operational green energy, blockchain and cryptocurrency related assets. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “ Tax Act ”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under the Trust’s issuer profile at www.sedar.com .
Forward-Looking Statements
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. The forward-looking statements are founded on the basis of expectations and assumptions made by the Trust. Details of the risk factors relating to Blockchain Power and its business are discussed under the heading “Business Risks and Uncertainties” in Blockchain Power’s annual management’s discussion & analysis dated May 15, 2018, a copy of which is available on Blockchain Power’s SEDAR profile at www.sedar.com . Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Blockchain Power expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
NON-GAAP MEASURES
The Trust has included certain non-GAAP measures to supplement its consolidated financial statements, which are presented in accordance with IFRS, including operating margin, adjusted earnings before interest, taxes and depreciation (“EBITDA”) and adjusted earnings before interest, taxes and depreciation per Unit.
Operating margin is calculated as cost of sales from revenues as follows:
| Three months ended | ||
| March 31, 2018 $ | March 31, 2017 $ | |
| Total revenue | 5,059,499 | 2,779,970 |
| Less: | 2,137,173 | 778,565 |
| Cost of sales excluding depreciation | ||
| Operating margin | 2,922,326 | 2,001,405 |
Adjusted EBITDA is calculated as follows:
| Three months ended | ||||
| March 31, 2018 $ | March 31, 2017 $ | |||
| (Loss) for the period | (5,441,309 | ) | (3,833,821 | ) |
| Add-back: Interest and finance charges | 2,922,326 | 2,029,536 | ||
| Income tax recovery | (35,278 | ) | (123,132 | ) |
| Depreciation | 1,693,263 | 981,788 | ||
| Fair value gain on debentures and conversion features Loss on settlement of debt | (1,184,249) 13,737,250 | - 320,254 | ||
| Warrant revaluation | (7,529,160 | ) | 2,072,830 | |
| Adjusted EBITDA | 3.218,552 | 1,447,455 | ||
| Adjusted EBITDA per Unit | 0.02 | 0.03 | ||
The Trust believes that operating margin and adjusted EBITDA, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Trust. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other entities. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
