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April 5, 2011 /PRNewswire/ -- Juhl Wind, Inc. (OTCBB: JUHL), the Leader in Community Wind Power, held its 2010 Earnings Call and 2011 Outlook on
Monday, April 4th and today the Company is providing a summary of the highlights from the call. The call was hosted by Juhl's President,
John Mitola and its Chief Financial Officer,
"Its very significant for our investors to note that we believe our company has completed more work on wind farms over the past year and a half than any other independent, publicly traded wind development company in
the United States," stated
John Mitola. "When you consider the fact that we have built or are in the process of completing six wind farms over this past year or so, totaling approximately
$150 million in value, we think that level of activity is unmatched in the market."
"In the management discussion and analysis section of our 10K, we highlighted our subsequent events and reported that we received cash deposits in March of approximately
$2.5 million," added
John Brand. "These deposits exclude the receipt of
$1 million we received in March from an advance of the sale of our development rights to a 40MW project, and we expect to receive an additional
$1.8 million in
April 2011 as a last installment on the
Adams and Danielson projects. A substantial portion of our development fee revenues are going to be recognized in first and second quarters of 2011 since our revenue recognition accounting policy on this fee revenue essentially has us recording these fees upon the financial closing of a project. Thus, we expect approximately
$5 million of development fee revenue will be recorded in the first and second quarters."
"We intend to use the cash we have coming in, coupled with our credible position in the market, to execute on a variety of strategic growth initiatives," continued
John Mitola. "While our revenue for the year ended 2010 was down from 2009, our actual total development and construction activity that we were managing was way up with our work on those six projects and we are seeing the results of that work through the receipt of our development fee cash to our balance sheet. In addition to the
$5 million of fee revenue
John Brand described, we expect to derive another
$1 to $1.5 million in fees from the completion of permanent financings on two other projects. So, we expect our cash position to be quite strong going into the second half of 2011."
"While our revenue for the year ended 2010 was approximately
$6,268,000 compared to approximately
$11,676,000 for 2009, or a decrease of 46%, we had twice as many projects under construction as we crossed into 2011 then we did at the end of 2009," stated
John Brand. "This decrease needs some further explanation as you wouldn't necessarily know that our activity was up. There were changes in our construction responsibilities and turbine supply arrangements that led to a reduction in revenue recognition. Namely, in two of the projects, we acted in the role of a construction advisor as opposed to a general contractor. In addition to that, in one of the projects, revenue was eliminated under U.S. GAAP treatment as we had to take into account that the project was a variable interest entity, or VIE. The VIE rules require us to consolidate the project into our financials. And that's why you see some references on our balance sheet and income statement to a 'non-controlling interest'".
"We plan to use the strength of our balance sheet to help us continue to organically build the steady side of our revenue – our administrative services, operations and maintenance of our wind farms," continued Mitola. "And, in addition to that organic growth, we have begun the process of looking for strategic acquisitions to 'bolt on' to our core business. We have positioned the Company to take advantage of the growth occurring in the community wind industry and are now actively seeking acquisitions in other segments of our industry, such as wind farm management and turbine maintenance services. Management feels it is appropriate to focus on three areas of acquisitions."