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Ormat Technologies: Financial results for Q2 and H1 2012
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Reno, Nevada - Quarterly highlights and recent developments:
• Total revenues increased 24 percent to $129.8 million
• Cash flow from operations totals $30.2 million
• Operating income increased 34 percent to $26.0 million
• EBITDA of $50.8 million
• Robust product backlog of $242 million as of August 1, 2012
• 30MW McGinness Hills power plant in Nevada is operating at full power
• Received $72.2 million cash grant for three projects
Commenting on the results, Dita Bronicki, chief executive officer of Ormat, stated: "We had a very good second quarter. Total revenues increased 24 percent period-over-period. Operating income significantly improved. Our organic growth and improved operations results offset the impact of low natural gas prices on our energy rates under the SO#4 PPAs in California.
"We achieved a number of key milestones during the second quarter. On the product side, we continued to win orders and strengthen our already robust backlog. In July, we announced the closing of a $61.4 million engineering, procurement and construction contract with Enel Green Power North America, maintaining our robust product backlog of $242 million. On the electricity side, we recently received off-taker approval of the commercial operation date for our Tuscarora power plant. In addition, we successfully completed the construction of the 30-MW McGinness Hills geothermal power plant demonstrating the strength of our vertically integrated structure to move from green field to production. The 30 MW McGinness Hills power plant that is in full operation since June, increased the total generating capacity of our portfolio to 586 MW."
Financial Summary
Second Quarter Results
For the three months ended June 30, 2012, total revenues increased by 24.1 percent to $129.8 million from $104.6 million in the second quarter of 2011. Product revenues almost doubled to $44.8 million, from $23.4 million in the three months ended June 30, 2011. Electricity revenues increased 4.7 percent to $85.0 million, up from $81.2 million in the three months ended June 30, 2011.
Operating income for the three months ended June 30, 2012 increased by $6.6 million to $26.0 million from $19.4 million for the three months ended June 30, 2011. The increase is principally attributed to lower maintenance costs in our electricity segment and higher revenues in our product segment due to the increase in new customer orders that were secured in 2011.
For the quarter, the company reported net income of $8.7 million, or $0.19 per share (basic and diluted), compared to $8.2 million, or $0.18 per share (basic and diluted), for the same quarter a year ago.
EBITDA for the second quarter of 2012 was $50.8 million, compared to $47.7 million for the same quarter last year. The reconciliation of GAAP net cash provided by operating activities to EBITDA and additional cash flows information is set forth below.
As of June 30, 2012, cash, cash equivalents and marketable securities were $71.9 million. In addition, as of June 30, 2012, the company has available, committed lines of credit with commercial banks aggregating $466.8 million, of which $64.8 million is unused.
On August 1, 2012, Ormat's Board of Directors approved the payment of a quarterly dividend of $0.04 per share pursuant to the company's dividend policy, which targets an annual payout ratio of at least 20 percent of the company's net income. The dividend will be paid on August 23, 2012 to shareholders of record as of the close of business on August 14, 2012. The company expects to pay a dividend of $0.04 per share in the next quarter.
Commenting on the outlook for 2012, Bronicki said, "We currently maintain our 2012 product revenues to be $165 to $175 million. We narrow the range of our expected electricity forecast to be between $320 and $330 million."
Six-Month Results
For the six months ended June 30, 2012, total revenues increased 29.5 percent to $262.2 million from $202.4 million in the six months ended June 30, 2011. Net income for the period was $16.7 million, or $0.36 per share (basic and diluted), compared to net loss of $0.7 million, or $0.02 per share (basic and diluted), in the same period in 2011. The increase is principally attributable to the $29.2 million increase in operating income.
Product revenues more than doubled to $94.9 million, from $43.0 million in the six months ended June 30, 2011. Electricity revenues increased 4.9 percent to $167.3 million, up from $159.5 million in the six months ended June 30, 2011.
EBITDA for the six months ended June 30, 2012 was $102.3 million, compared to $74.8 million for the same period last year. The reconciliation of GAAP net cash provided by operating activities to EBITDA and additional cash flows information is set forth below.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters included in this press release at 10 a.m. EDT on Thursday, August 2, 2012. The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the Webcast & Presentations in the Investor Relations section of Ormat's website.
The webcast will be available approximately two hours after the conclusion of the live call. A replay will be available from 11 a.m. EDT on August 2, 2012. Please call: (855) 859-2056 (U.S. and Canada) (404) 537-3406 (International) and enter the replay code: 99938996.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 82 U.S. patents. Ormat has engineered and built power plants that it currently owns or has supplied to utilities and developers worldwide, totaling over 1,500 MW of gross capacity. Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3, and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Ormat Technologies Contact:
Investor Relations Contact:
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSA Strategic Communications
775-356-9029 212-896-1215 (Todd) /212-896-1206 (Rob)
[email protected] [email protected] / [email protected]
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six-Month Periods Ended June 30, 2012 and 2011
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
(In thousands, except per share data) (In thousands, except per share data)
Revenues:
Electricity $ 85,011 $ 81,190 $ 167,258 $ 159,458
Product 44,826 23,424 94,931 42,976
Total revenues 129,837 104,614 262,189 202,434
Cost of revenues:
Electricity 57,953 62,212 115,884 128,149
Product 31,818 9,249 66,445 26,139
Total cost of revenues 89,771 71,461 182,329 154,288
Gross margin 40,066 33,153 79,860 48,146
Operating expenses:
Research and development expenses 1,464 2,575 2,512 4,782
Selling and marketing expenses 4,666 3,725 9,588 6,385
General and administrative expenses 6,793 7,479 14,107 14,486
Write-off of unsuccessful exploration
activities 1,151 — 1,919 —
Operating income 25,992 19,374 51,734 22,493
Other income (expense):
Interest income 336 716 724 851
Interest expense, net (14,263) (17,442) (29,141) (30,522)
Foreign currency translation and
transaction gains (losses) (1,756) 596 (1,742) 1,113
Income attributable to sale of tax
benefits 2,589 3,141 5,106 5,280
Other non-operating expense, net 290 915 129 118
Income (loss), before income
taxes and equity in losses of
investees 13,188 7,300 26,810 (667)
Income tax provision (4,309) 1,007 (9,766) 421
Equity in losses of investees, net (157) (69) (297) (481)
Net income (loss) 8,722 8,238 16,747 (727)
Net income attributable to
noncontrolling interest (81) (105) (211) (115)
Net income (loss) attributable to
the Company's stockholders $ 8,641 $ 8,133 $ 16,536 $ (842)
Earnings (loss) per share attributable to the Company's stockholders — basic and diluted: $ 0.19 $ 0.18 $ 0.36 $ (0.02)
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic 45,431 45,431 45,431 45,431
Diluted 45,438 45,443 45,438 45,431
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2012 and December 31, 2011
(Unaudited)
June 30, December 31,
2012 2011
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 66,684 $ 99,886
Marketable securities 5,221 18,521
Restricted cash, cash equivalents and marketable securities 97,792 75,521
Receivables:
Trade 42,315 51,274
Related entity 329 287
Other 8,064 9,415
Due from Parent 161 260
Inventories 18,119 12,541
Costs and estimated earnings in excess of billings on uncompleted
contracts 10,051 3,966
Deferred income taxes 2,260 1,842
Prepaid expenses and other 24,467 18,672
Total current assets 275,463 292,185
Unconsolidated investments 3,783 3,757
Deposits and other 25,477 22,194
Deferred charges 39,711 40,236
Property, plant and equipment, net 1,560,127 1,518,532
Construction-in-process 325,206 370,551
Deferred financing and lease costs, net 27,188 28,482
Intangible assets, net 37,145 38,781
Total assets $ 2,294,100 $ 2,314,718
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 106,264 $ 105,112
Billings in excess of costs and estimated earnings on uncompleted
contracts 25,272 33,104
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes (non-recourse) 32,460 21,464
Other loans 13,677 13,547
Full recourse 20,647 20,543
Total current liabilities 198,320 193,770
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes (non-recourse) 330,161 341,157
Other loans 93,714 100,585
Full recourse:
Senior unsecured bonds 249,888 250,042
Other loans 53,273 63,623
Revolving credit lines with banks (full recourse) 203,369 214,049
Liability associated with sale of tax benefits 60,247 69,269
Deferred lease income 67,686 68,955
Deferred income taxes 59,755 54,665
Liability for unrecognized tax benefits 6,712 5,875
Liabilities for severance pay 20,857 20,547
Asset retirement obligation 22,118 21,284
Other long-term liabilities 3,789 4,253
Total liabilities 1,369,889 1,408,074
Equity:
The Company's stockholders' equity:
Common stock 46 46
Additional paid-in capital 728,873 725,746
Retained earnings 187,048 172,331
Accumulated other comprehensive income 482 595
916,449 898,718
Noncontrolling interest 7,762 7,926
Total equity 924,211 906,644
Total liabilities and equity $ 2,294,100 $ 2,314,718
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Additional Cash Flows Information
For the Three and Six-Month Periods Ended June 30, 2012 and 2011
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is not a measurement of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA is presented because we believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA differently than we do. The following table reconciles net cash provided by operating activities to EBITDA for the three and six-month periods ended June 30, 2012 and 2011:
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
(in thousands) (in thousands)
Net cash provided by operating activities $ 30,205 $ 26,440 $ 72,079 $ 39,506
Adjusted for:
Interest expense, net (excluding amortization
of deferred financing costs) 13,082 16,528 26,729 28,824
Interest income (336) (716) (724) (851)
Income tax provision (benefit) 4,309 (1,007) 9,766 (421)
Adjustments to reconcile net income or loss to net cash provided by operating activities (excluding depreciation and amortization) 3,530 6,433 (5,575) 7,772
EBITDA $ 50,790 $ 47,678 $ 102,275 $ 74,830
Net cash used in investing activities $ (4,695) $ (27,817) $ (67,028) $ (135,741)
Net cash provided by financing activities $ (43,406) $ 5,040 $ (38,253) $ 57,758
Depreciation and amortization $ 25,013 $ 24,635 $ 49,757 $ 48,005
Reno, Nevada - Quarterly highlights and recent developments:
• Total revenues increased 24 percent to $129.8 million
• Cash flow from operations totals $30.2 million
• Operating income increased 34 percent to $26.0 million
• EBITDA of $50.8 million
• Robust product backlog of $242 million as of August 1, 2012
• 30MW McGinness Hills power plant in Nevada is operating at full power
• Received $72.2 million cash grant for three projects
Commenting on the results, Dita Bronicki, chief executive officer of Ormat, stated: "We had a very good second quarter. Total revenues increased 24 percent period-over-period. Operating income significantly improved. Our organic growth and improved operations results offset the impact of low natural gas prices on our energy rates under the SO#4 PPAs in California.
"We achieved a number of key milestones during the second quarter. On the product side, we continued to win orders and strengthen our already robust backlog. In July, we announced the closing of a $61.4 million engineering, procurement and construction contract with Enel Green Power North America, maintaining our robust product backlog of $242 million. On the electricity side, we recently received off-taker approval of the commercial operation date for our Tuscarora power plant. In addition, we successfully completed the construction of the 30-MW McGinness Hills geothermal power plant demonstrating the strength of our vertically integrated structure to move from green field to production. The 30 MW McGinness Hills power plant that is in full operation since June, increased the total generating capacity of our portfolio to 586 MW."
Financial Summary
Second Quarter Results
For the three months ended June 30, 2012, total revenues increased by 24.1 percent to $129.8 million from $104.6 million in the second quarter of 2011. Product revenues almost doubled to $44.8 million, from $23.4 million in the three months ended June 30, 2011. Electricity revenues increased 4.7 percent to $85.0 million, up from $81.2 million in the three months ended June 30, 2011.
Operating income for the three months ended June 30, 2012 increased by $6.6 million to $26.0 million from $19.4 million for the three months ended June 30, 2011. The increase is principally attributed to lower maintenance costs in our electricity segment and higher revenues in our product segment due to the increase in new customer orders that were secured in 2011.
For the quarter, the company reported net income of $8.7 million, or $0.19 per share (basic and diluted), compared to $8.2 million, or $0.18 per share (basic and diluted), for the same quarter a year ago.
EBITDA for the second quarter of 2012 was $50.8 million, compared to $47.7 million for the same quarter last year. The reconciliation of GAAP net cash provided by operating activities to EBITDA and additional cash flows information is set forth below.
As of June 30, 2012, cash, cash equivalents and marketable securities were $71.9 million. In addition, as of June 30, 2012, the company has available, committed lines of credit with commercial banks aggregating $466.8 million, of which $64.8 million is unused.
On August 1, 2012, Ormat's Board of Directors approved the payment of a quarterly dividend of $0.04 per share pursuant to the company's dividend policy, which targets an annual payout ratio of at least 20 percent of the company's net income. The dividend will be paid on August 23, 2012 to shareholders of record as of the close of business on August 14, 2012. The company expects to pay a dividend of $0.04 per share in the next quarter.
Commenting on the outlook for 2012, Bronicki said, "We currently maintain our 2012 product revenues to be $165 to $175 million. We narrow the range of our expected electricity forecast to be between $320 and $330 million."
Six-Month Results
For the six months ended June 30, 2012, total revenues increased 29.5 percent to $262.2 million from $202.4 million in the six months ended June 30, 2011. Net income for the period was $16.7 million, or $0.36 per share (basic and diluted), compared to net loss of $0.7 million, or $0.02 per share (basic and diluted), in the same period in 2011. The increase is principally attributable to the $29.2 million increase in operating income.
Product revenues more than doubled to $94.9 million, from $43.0 million in the six months ended June 30, 2011. Electricity revenues increased 4.9 percent to $167.3 million, up from $159.5 million in the six months ended June 30, 2011.
EBITDA for the six months ended June 30, 2012 was $102.3 million, compared to $74.8 million for the same period last year. The reconciliation of GAAP net cash provided by operating activities to EBITDA and additional cash flows information is set forth below.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters included in this press release at 10 a.m. EDT on Thursday, August 2, 2012. The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the Webcast & Presentations in the Investor Relations section of Ormat's website.
The webcast will be available approximately two hours after the conclusion of the live call. A replay will be available from 11 a.m. EDT on August 2, 2012. Please call: (855) 859-2056 (U.S. and Canada) (404) 537-3406 (International) and enter the replay code: 99938996.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 82 U.S. patents. Ormat has engineered and built power plants that it currently owns or has supplied to utilities and developers worldwide, totaling over 1,500 MW of gross capacity. Ormat's current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3, and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2012.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Ormat Technologies Contact:
Investor Relations Contact:
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSA Strategic Communications
775-356-9029 212-896-1215 (Todd) /212-896-1206 (Rob)
[email protected] [email protected] / [email protected]
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six-Month Periods Ended June 30, 2012 and 2011
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
(In thousands, except per share data) (In thousands, except per share data)
Revenues:
Electricity $ 85,011 $ 81,190 $ 167,258 $ 159,458
Product 44,826 23,424 94,931 42,976
Total revenues 129,837 104,614 262,189 202,434
Cost of revenues:
Electricity 57,953 62,212 115,884 128,149
Product 31,818 9,249 66,445 26,139
Total cost of revenues 89,771 71,461 182,329 154,288
Gross margin 40,066 33,153 79,860 48,146
Operating expenses:
Research and development expenses 1,464 2,575 2,512 4,782
Selling and marketing expenses 4,666 3,725 9,588 6,385
General and administrative expenses 6,793 7,479 14,107 14,486
Write-off of unsuccessful exploration
activities 1,151 — 1,919 —
Operating income 25,992 19,374 51,734 22,493
Other income (expense):
Interest income 336 716 724 851
Interest expense, net (14,263) (17,442) (29,141) (30,522)
Foreign currency translation and
transaction gains (losses) (1,756) 596 (1,742) 1,113
Income attributable to sale of tax
benefits 2,589 3,141 5,106 5,280
Other non-operating expense, net 290 915 129 118
Income (loss), before income
taxes and equity in losses of
investees 13,188 7,300 26,810 (667)
Income tax provision (4,309) 1,007 (9,766) 421
Equity in losses of investees, net (157) (69) (297) (481)
Net income (loss) 8,722 8,238 16,747 (727)
Net income attributable to
noncontrolling interest (81) (105) (211) (115)
Net income (loss) attributable to
the Company's stockholders $ 8,641 $ 8,133 $ 16,536 $ (842)
Earnings (loss) per share attributable to the Company's stockholders — basic and diluted: $ 0.19 $ 0.18 $ 0.36 $ (0.02)
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic 45,431 45,431 45,431 45,431
Diluted 45,438 45,443 45,438 45,431
Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2012 and December 31, 2011
(Unaudited)
June 30, December 31,
2012 2011
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 66,684 $ 99,886
Marketable securities 5,221 18,521
Restricted cash, cash equivalents and marketable securities 97,792 75,521
Receivables:
Trade 42,315 51,274
Related entity 329 287
Other 8,064 9,415
Due from Parent 161 260
Inventories 18,119 12,541
Costs and estimated earnings in excess of billings on uncompleted
contracts 10,051 3,966
Deferred income taxes 2,260 1,842
Prepaid expenses and other 24,467 18,672
Total current assets 275,463 292,185
Unconsolidated investments 3,783 3,757
Deposits and other 25,477 22,194
Deferred charges 39,711 40,236
Property, plant and equipment, net 1,560,127 1,518,532
Construction-in-process 325,206 370,551
Deferred financing and lease costs, net 27,188 28,482
Intangible assets, net 37,145 38,781
Total assets $ 2,294,100 $ 2,314,718
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 106,264 $ 105,112
Billings in excess of costs and estimated earnings on uncompleted
contracts 25,272 33,104
Current portion of long-term debt:
Limited and non-recourse:
Senior secured notes (non-recourse) 32,460 21,464
Other loans 13,677 13,547
Full recourse 20,647 20,543
Total current liabilities 198,320 193,770
Long-term debt, net of current portion:
Limited and non-recourse:
Senior secured notes (non-recourse) 330,161 341,157
Other loans 93,714 100,585
Full recourse:
Senior unsecured bonds 249,888 250,042
Other loans 53,273 63,623
Revolving credit lines with banks (full recourse) 203,369 214,049
Liability associated with sale of tax benefits 60,247 69,269
Deferred lease income 67,686 68,955
Deferred income taxes 59,755 54,665
Liability for unrecognized tax benefits 6,712 5,875
Liabilities for severance pay 20,857 20,547
Asset retirement obligation 22,118 21,284
Other long-term liabilities 3,789 4,253
Total liabilities 1,369,889 1,408,074
Equity:
The Company's stockholders' equity:
Common stock 46 46
Additional paid-in capital 728,873 725,746
Retained earnings 187,048 172,331
Accumulated other comprehensive income 482 595
916,449 898,718
Noncontrolling interest 7,762 7,926
Total equity 924,211 906,644
Total liabilities and equity $ 2,294,100 $ 2,314,718
Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Additional Cash Flows Information
For the Three and Six-Month Periods Ended June 30, 2012 and 2011
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is not a measurement of financial performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. EBITDA is presented because we believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA differently than we do. The following table reconciles net cash provided by operating activities to EBITDA for the three and six-month periods ended June 30, 2012 and 2011:
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
(in thousands) (in thousands)
Net cash provided by operating activities $ 30,205 $ 26,440 $ 72,079 $ 39,506
Adjusted for:
Interest expense, net (excluding amortization
of deferred financing costs) 13,082 16,528 26,729 28,824
Interest income (336) (716) (724) (851)
Income tax provision (benefit) 4,309 (1,007) 9,766 (421)
Adjustments to reconcile net income or loss to net cash provided by operating activities (excluding depreciation and amortization) 3,530 6,433 (5,575) 7,772
EBITDA $ 50,790 $ 47,678 $ 102,275 $ 74,830
Net cash used in investing activities $ (4,695) $ (27,817) $ (67,028) $ (135,741)
Net cash provided by financing activities $ (43,406) $ 5,040 $ (38,253) $ 57,758
Depreciation and amortization $ 25,013 $ 24,635 $ 49,757 $ 48,005