Revolve Reports Q3 FY2024 Revenue Increase of 65%

Vancouver, BC, May 30, 2024 – Revolve Renewable Power Corp. (TSXV:REVV) (OTCQB:REVVF) (“Revolve” or the “Company”), a North American owner, operator and developer of renewable energy projects, is pleased to report its financial results for the three and nine month period ended March  31, 2024 (“Q3 FY2024”). All amounts reported are in US dollars.

Tania Ontiveros, CFO of Revolve commented, “This is the Company’s first quarter since completing the acquisition of WindRiver, which has allowed us to report a 65% increase in revenues over the same period last year. Momentum is building across the various parts of the business and we look forward to reporting further progress over the coming months.”

Key Business & Financial Highlights in Q3 2024

• Total revenues for the 3 month period to March 31, 2024 of US$337,439 consisting of electricity generation revenue from our operational DG portfolio and the Box Springs Wind project since the acquisition of WindRiver Power Corporation (“WindRiver”) closed in mid-February. Total revenues for the 9 month period to the same date were US$1,668,201, representing a 65% increase on the same period in FY2023. This included (i) the milestone payment received in August 2023 from the sale of the Parker Solar & Storage project (ii) electricity generation sales from the operating DG portfolio and Box Springs Wind project and (iii) asset management income from the operation of the Hunter Creek and Sakwi Creek Hydro projects.
• Renewable energy generation from the Company’s operational projects was 3,877,342kWh for the 3 month period to March 31, 2024 and 4,822,522kWh for the 9 month period to March 31, 2024.
• During the quarter the Company completed the acquisition of WindRiver, a Canadian based renewable energy operator and developer with interests in a number of operating hydro and wind projects as well as a hydro project development pipeline (https://revolve-renewablepower.com/revolve-completes-acquisition-of-windriver-power-corporation-a-canadian-renewable-energy-operator-and-developer/).
• Distributed Generation (“DG”) assets under construction remained at 3.45MW with permitting work continuing on the 3MW CHP project and installation work continuing on the 450kWp rooftop solar project both located in Mexico.
• Distribution Generation assets under development remained stable at c.140MW with a continued focus on converting this pipeline into signed power purchase agreements (“PPAs”) Letters of Intent (“LOI”) have been signed for a number of new DG projects with a combined capacity of 2.22MW. Progress has been slow in converting these to signed PPAs as customers are delaying final decisions until post the Mexican government elections in early June 2024. We remain hopeful that PPAs can be signed for these projects prior to the year end FY2024.
• Development work across our utility scale portfolio continues to be focused on the 80MWh/20MW Vernal BESS and 49.5MW Primus Wind projects in the US. An interconnection agreement was signed for the Vernal BESS project in April this year and the project remains on track to reach ready to build status within the next 12 months. The Primus Wind project is expected to complete the interconnection process in the coming months and a ready to build date within the next 12 months is also targeted for this project.
• The Company remains well positioned in the Mexican utility scale market with over 500MW of wind projects in mid to late stage development. As reported in our Q2 FY2024 financial results we are continuing to see signs of improving market conditions in Mexico and growing interest in renewable power purchase agreements from large corporates.
• We continue to analyse new greenfield development projects in Canada and the US with a view to adding further capacity to our pipeline by the end of FY2024. Limited transmission capacity and congested interconnection queues remain an issue for developers leading to the Company being selective in what opportunities are being pursued.
• Net Loss for the quarter ending March 31, 2024 was US$1,167,546 compared with a Net Profit of US$523,085 for the quarter ending March 31, 2023. The Company recorded a Net Loss for the 9 month period to March 31, 2024 of US$667,027 compared with a Net Loss of $235,972 for the 9 month period to March 31, 2023.
• Cash on balance sheet as at March 31, 2024 was US$1,295,455 following completion of the final tranche of the private placement during January 2024 as well as the consolidation of cash held by WindRiver and the Box Springs Wind project.

Full Financial Statements and Management Discussion and Analysis can be found on the Company’s website (https://revolve-renewablepower.com/financials/)  and is also filed on SEDAR+.

The Company has also issued a Q3 FY2024 Financial & Operating Results presentation, which can be found on the Company’s website:
(https://revolve-renewablepower.com/financials/).

About Revolve

Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US, Canada and Mexico. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW “behind the meter” distributed generation (or “DG”) assets. Revolve’s portfolio includes the following:

• Operating Assets: 11MW (net) of operating assets under long term power purchase agreements across Canada and Mexico covering wind, solar, battery storage and hydro generation;
• Under Construction: a 3MW CHP project and a 450kWp rooftop solar project that are both under construction and expected to be operational later this year; and
• Development: a diverse portfolio of utility scale development projects across the US, Canada and Mexico with a combined capacity of over 3,000MWs as well as a 140MW+ distributed generation portfolio that is under development.

Revolve has an accomplished management team with a demonstrated track record of taking projects from “greenfield” through to “ready to build” status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW of projects.

Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US, Canada and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG assets.

For further information contact: 

Tania Ontiveros , CFO
IR@revolve-renewablepower.com

Or

Sunita Prasad
VP, Corporate Development & Investor Relations
Phone:+1778-885-5550
IR@revolve-renewablepower.com

Forward Looking Information

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures including Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”). Non-IFRS measures and industry metrics do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. The term EBITDA consists of net loss or gain and excludes interest, taxes, depreciation and amortization. The most directly comparable measure to EBITDA calculated in accordance with IFRS is net gain or net loss. The term EBITDA margin consists of the percentage of net loss or gain and excludes interest, taxes, depreciation and amortization. These measures, have limitations, and are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our filings on SEDAR+ at sedarplus.ca and posted on our website.

Financial Projections

The Company’s financial projections are inherently speculative and may prove to be inaccurate. Any financial projections provided in this press release have been prepared in good faith based upon the estimates and assumptions considered reasonable by management. However, projections are no more than estimates of possible events and should not be relied upon to predict the results that the Company may attain. Future oriented financial information in this press release includes statements with respect to (i) revenues and EBITDA for FY2023; and (ii) that the Company’s revenue will increase to US$5m and that it will have a break-even EBITDA for FY2024; and (iii) that it’s increase in revenue and EBITDA will be driven by the Company’s existing operational distribution generation portfolio as well as further contingent milestone payments from utility scale projects previously sold to 3rd parties. There is a risk that the conditions related to these contingent payments may not be met and therefore the payments will not be received by the Company, which would materially impact the Company’s FY2024 projected revenues and EBITDA.  The projections are based upon a number of estimates and assumptions and have not been examined, reviewed or compiled by independent accountants or other third-party experts, including assumptions with respect to the Company’s anticipated expenses and future revenues from the Company’s existing operational distribution generation portfolio as well as further milestone payments from utility scale projects previously sold to 3rd parties. These assumptions may vary from the actual results. Accordingly, there is no assurance that future events will correspond to management’s assumptions or that actual results during the periods covered will approximate the financial projections. Any variations of actual results from projections may be material and adverse. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the reasonable assumptions of the Company and management as at the date hereof. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue, profitability, EBITDA may differ materially from any revenue, and profitability profiles provided in this press release. Such information is presented for illustrative purposes only and may not be an indication of our actual financial position or results of operations.

Revolve does not provide reconciliations for forward-looking non-GAAP financial measures as Revolve is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various events that have not yet occurred, are out of Revolve’s control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, Revolve is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Forward Looking Information

The forward-looking statements contained in this news release constitute ‘‘forward-looking information’’ within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and ‘‘forward-looking statements’’ within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, ‘‘forward-looking statements”). The words “will”, “expects”, “estimates”, “projections”, “forecast”, “intends”, “anticipates”, “believes”, “targets” (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include statements with respect to (i) statements with respect to the business plans of the Company, including it’s goal of developing 5,000MW of utility-scale projects in the US and Mexico and growing its portfolio of revenue-generating DG (distributed generation) assets; (ii) the Company’s intention to distribute it’s its FY2024 financial statements along with supplementary information providing an update on the business on October 30, 2024 before the markets open at 8am Eastern Time; and (iii) that  increases to the Company’s revenue and EBITDA for the 2024 financial year will be driven by the Company’s existing operational distribution generation portfolio as well as further milestone payments from utility scale projects previously sold to 3rd parties. This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Material factors underlying forward-looking information and management’s expectations include: the receipt of applicable regulatory approvals; the absence of material adverse regulatory decisions being received and the expectation of regulatory stability; the absence of any material equipment breakdown or failure; availability of financing on commercially reasonable terms and the stability of credit ratings of the Company and its subsidiaries; the absence of unexpected material liabilities or uninsured losses; the continued availability of commodity supplies and stability of commodity prices; the absence of interest rate increases or significant currency exchange rate fluctuations; the absence of significant operational, financial or supply chain disruptions or liability, including relating to import controls and tariffs; the continued ability to maintain systems and facilities to ensure their continued performance; the absence of a severe and prolonged downturn in general economic, credit, social or market conditions; the successful and timely development and construction of new projects; the absence of capital project or financing cost overruns; sufficient liquidity and capital resources; the continuation of long term weather patterns and trends; the absence of significant counterparty defaults; the continued competitiveness of electricity pricing when compared with alternative sources of energy; the realization of the anticipated benefits of the Company’s acquisitions and joint ventures; the absence of a change in applicable laws, political conditions, public policies and directions by governments, materially negatively affecting the Company; the ability to obtain and maintain licenses and permits; maintenance of adequate insurance coverage; the absence of material fluctuations in market energy prices; the absence of material disputes with taxation authorities or changes to applicable tax laws; continued maintenance of information technology infrastructure and the absence of a material breach of cybersecurity; the successful implementation of new information technology systems and infrastructure; favourable relations with external stakeholders; our ability to retain key personnel; our ability to maintain and expand distribution capabilities; and  our ability to continue investing in infrastructure to support our growth.

Such uncertainties and risks may include, among others, market conditions, delays in obtaining or failure to obtain required regulatory approvals in a timely fashion, or at all; the availability of financing, fluctuating prices, the possibility of project cost overruns, mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and unanticipated costs and expenses, variations in the cost of energy or materials or supplies or environmental impacts on operations, disruptions to the Company’s supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; risks related to the development and potential development of the Company’s projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company’s continuous disclosure filings on SEDAR+ at sedarplus.ca. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Such statements and information reflect the current view of the Company. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company does not undertake to update this information at any particular time except as required in accordance with applicable laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.