SAN JOSE, Calif., April 5, 2017 /PRNewswire/ -- 8point3 Energy
Partners LP (NASDAQ:CAFD) today announced financial results for its
first fiscal quarter ended February 28,
2017.
- Exceeded Q1 2017 revenue, net loss, Adjusted EBITDA and CAFD
guidance
- Completed acquisition of minority stake in First Solar's
Stateline project
- Declared Q1 2017 distribution of $0.2565 per share, an increase of 3.0 percent
over the Q4 2016 distribution
- Forecasts Q2 2017 distribution of $0.2642 per share, an increase of 3.0
percent compared to the Q1 2017 distribution
- 2017 financial guidance remains unchanged, reiterates fiscal
year 2017 distribution growth of 12%
For the first quarter of fiscal 2017, 8point3 Energy Partners
reported revenue of $9.9 million, net
loss of $5.3 million, adjusted EBITDA
of $13.1 million and cash available
for distribution (CAFD) of $22.1
million.
"Our high-quality solar portfolio performed well as we exceeded
our key financial metrics for the quarter while once again raising
our quarterly distribution," said Chuck
Boynton, 8point3 Energy Partners CEO. "As of the end of
February, our portfolio consisted of interests in 945-megawatts
(MW) of U.S. solar generating assets including the recent
acquisition of First Solar's 34 percent minority interest in its
300-MW Stateline project. The Stateline project is expected
to generate approximately $32 million
in annual cash distributions and has a 20 year contract life.
With this acquisition, our portfolio is now expected to generate
annual CAFD of approximately $100
million in 2017."
"We were pleased to achieve our financial goals for the quarter
as we benefitted from the continued stable performance of our asset
portfolio," said Bryan Schumaker,
8point3 Energy Partners chief financial officer. "With the
completion of our Stateline interest acquisition and the
predictable cash flows from our other projects, we believe we will
be able to reduce leverage and achieve our distribution growth rate
target of 12 percent this year."
Also, First Solar, one of the Partnership's sponsors, has
publicly announced and notified the general partner's Board of
Directors of its intention to explore alternatives related to its
interests in the Partnership. Given First Solar's intention,
SunPower, the Partnership's other sponsor, has likewise publicly
announced and notified the general partner's Board of Directors
that it is exploring alternatives related to its interests in the
Partnership, including but not limited to, seeking a potential new
joint venture partner in the Partnership.
The sponsors have stated that they will engage financial
advisors to review their alternatives with respect to their
interests in the Partnership and that they intend to coordinate
their review process. Although our sponsors have publicly
announced their current intentions, there is no assurance that
either or both of our sponsors will pursue or effect any particular
alternative. The decision by the sponsors to consider their
alternatives for their interests in the Partnership may result in
interest from third parties about also acquiring the public
ownership in the Partnership. In such event, the Partnership
would refer any such proposal to the Conflicts Committee of the
Board of Directors of the Partnership's general partner for
evaluation. The Partnership does not intend to disclose
further developments with respect to this evaluation process except
as required by law or otherwise deemed appropriate. The
sponsor-appointed directors and officers of the general partner of
the Partnership remain committed to prudently managing the
partnership throughout this evaluation process.
"8point3's strong operating performance over the last two years
has shown that owning a portfolio of high-quality solar assets can
successfully generate long-term, stable cash flow growth for
investors. Despite the sponsors' review of alternatives with
respect to their interests in the Partnership, I want to assure our
investors that we do not expect this process to have an impact on
our financial results for the year. Given our cash flow
profile, we are well positioned to achieve our guidance for the
year as well as reach our 12 percent distribution growth rate for
2017," concluded
Boynton.
Additionally, the Conflicts Committee of the Board of Directors
of the Partnership's general partner has agreed to waive the
negotiation period with respect to First Solar's 179-MW Switch
Station project, allowing for a potential third party sale.
Also, First Solar has formally offered its 280-MW California Flats
and 40-MW Cuyama projects, currently included in the Right of First
Offer (ROFO) portfolio, to the Partnership. If the
Partnership does not acquire these projects from First Solar, those
projects are expected to be sold to third parties as permitted
under our ROFO with First Solar.
The Board of Directors of the Partnership's general partner also
declared a cash distribution for its Class A shares of $0.2565 per share for the first quarter. The
first quarter distribution will be paid on April 14, 2017 to shareholders of record as of
April 4, 2017.
Additionally, the Partnership commenced a $125 million at-the-market (ATM) equity offering
program during the quarter. The Partnership did not utilize
the facility during the first quarter of 2017.
Guidance
The Partnership's second quarter 2017
guidance is as follows: revenue of $14.0
million to $16.0 million, net income of $3.0 million to $5.0 million, adjusted EBITDA of
$24.0 million to $26.5 million, CAFD
of $15.0 million to $17.5 million and
a distribution of $0.2642 per share,
a forecasted increase of 3.0 percent compared to the Q1 2017
distribution.
The Partnership's fiscal year 2017 guidance remains
unchanged: revenue of $63.3 million to
$66.7 million, net income of $27.0
million to $32.6 million, Adjusted EBITDA of $106.5 million to $113.1 million and CAFD of
$91.5 million to $101.0
million. The Partnership also expects a distribution
growth rate of 12 percent for fiscal year 2017.
About 8point3 Energy Partners
8point3 Energy Partners LP (NASDAQ:CAFD) is a growth-oriented
limited partnership formed by First Solar, Inc. and SunPower
Corporation to own, operate and acquire solar energy generation
projects. 8point3 Energy Partners' primary objective is to generate
predictable cash distributions that grow at a sustainable rate. The
Partnership owns interests in projects in the United States that generate long-term
contracted cash flows and serve utility, commercial and residential
customers. For more information about 8point3 Energy Partners,
please visit: www.8point3energypartners.com.
For 8point3 Energy Partners Investors
This press
release includes various "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management's current expectations and assumptions and involve known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking
statements include, among other things, statements expressing
management's expectations, beliefs, estimates, forecasts,
projections and assumptions. You can identify our forward-looking
statements by words such as "anticipate", "believe", "estimate",
"expect", "forecast", "goals", "objectives", "outlook", "intend",
"plan", "predict", "project", "risks", "schedule", "seek",
"target", "could", "may", "will", "should" or "would" or other
similar expressions that convey the uncertainty of future events or
outcomes. In accordance with "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, these statements
are accompanied by cautionary language identifying important
factors, though not necessarily all such factors, which could cause
future outcomes to differ materially from those set forth in
forward-looking statements. In particular, expressed or implied
statements concerning the sponsors' ownership interest in the
Partnership, expectations of plans, strategies, objectives and
growth and anticipated financial and operational performance of the
Partnership and its subsidiaries, including guidance regarding the
Partnership's revenue, Adjusted EBITDA, cash available for
distribution and distributions, other future actions, conditions or
events such as the projected commercial operation dates of
projects, future operating results or the ability to generate
sales, income or cash flow or to make distributions are
forward-looking statements. Forward-looking statements are not
guarantees of performance. They involve risks, uncertainties and
assumptions. Future actions, conditions or events and future
results of operations may differ materially from those expressed in
these forward-looking statements. Forward-looking statements speak
only as of the date of this press release, April 5, 2017, and we disclaim any obligation to
update such statements for any reason, except as required by law.
All forward-looking statements contained in this press release are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this paragraph. Many of the factors
that will determine these results are beyond our ability to control
or predict. These factors include the risk factors described under
"Risk Factors" in the Partnership's Annual Report on Form 10-K for
the fiscal year ended November 30,
2016, filed with the Securities and Exchange Commission on
January 26, 2017. If any of those
risks occur, it could cause our actual results to differ materially
from those contained in any forward-looking statement. Because of
these risks and uncertainties, you should not place undue reliance
on any forward-looking statement.
Non-GAAP Financial Information
This earnings release
includes certain financial measures that are not defined under U.S.
generally accepted accounting principles (GAAP), including Adjusted
EBITDA and cash available for distribution. Such non-GAAP financial
measures should be considered only as supplemental to, and not as
superior to, financial measures prepared in accordance with GAAP.
We reconcile these non-GAAP financial measures to the most directly
comparable financial measure prepared in accordance with GAAP in
the tables that accompany this release. In the introduction to such
reconciliation tables that accompany this release, we disclose the
reasons why we believe our use of the non-GAAP financial measures
in this release provides useful information. Please read "Non-GAAP
Financial Measures" below for further details on our use of
non-GAAP financial measures.
8point3 Energy
Partners LP Condensed Consolidated Balance
Sheets (In thousands, except share
data) (Unaudited)
|
|
|
|
February
28,
|
|
|
November
30,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,010
|
|
|
$
|
14,261
|
|
Accounts receivable
and short-term financing receivables, net
|
|
|
5,665
|
|
|
|
5,401
|
|
Prepaid and other
current assets1
|
|
|
9,369
|
|
|
|
15,745
|
|
Total current
assets
|
|
|
22,044
|
|
|
|
35,407
|
|
Property and
equipment, net
|
|
|
726,189
|
|
|
|
720,132
|
|
Long-term financing
receivables, net
|
|
|
79,232
|
|
|
|
80,014
|
|
Investments in
unconsolidated affiliates
|
|
|
788,000
|
|
|
|
475,078
|
|
Other long-term
assets
|
|
|
25,515
|
|
|
|
24,432
|
|
Total
assets
|
|
$
|
1,640,980
|
|
|
$
|
1,335,063
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
other current liabilities1
|
|
$
|
11,144
|
|
|
$
|
23,771
|
|
Short-term debt and
financing obligations1
|
|
|
2,200
|
|
|
|
1,964
|
|
Deferred revenue,
current portion
|
|
|
612
|
|
|
|
870
|
|
Total current
liabilities
|
|
|
13,956
|
|
|
|
26,605
|
|
Long-term debt and
financing obligations1
|
|
|
708,473
|
|
|
|
384,436
|
|
Deferred revenue, net
of current portion
|
|
|
243
|
|
|
|
308
|
|
Deferred tax
liabilities
|
|
|
31,264
|
|
|
|
30,733
|
|
Asset retirement
obligations
|
|
|
14,129
|
|
|
|
13,448
|
|
Total
liabilities
|
|
|
768,065
|
|
|
|
455,530
|
|
Redeemable
noncontrolling interests
|
|
|
17,346
|
|
|
|
17,624
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Class A shares,
28,076,907 and 28,072,680 issued and outstanding as of
February 28, 2017 and November 30, 2016,
respectively
|
|
|
249,194
|
|
|
|
249,138
|
|
Class B shares,
51,000,000 issued and outstanding as of February 28, 2017 and November 30,
2016
|
|
|
—
|
|
|
|
—
|
|
Accumulated
earnings
|
|
|
16,311
|
|
|
|
22,440
|
|
Total shareholders'
equity attributable to 8point3 Energy Partners LP
|
|
|
265,505
|
|
|
|
271,578
|
|
Noncontrolling
interests
|
|
|
590,064
|
|
|
|
590,331
|
|
Total
equity
|
|
|
855,569
|
|
|
|
861,909
|
|
Total liabilities and
equity
|
|
$
|
1,640,980
|
|
|
$
|
1,335,063
|
|
|
|
1
|
The Partnership has
related-party balances for transactions made with the Sponsors and
tax equity investors. Related-party balances recorded within
"Prepaid and other current assets" in the unaudited condensed
consolidated balance sheets were $0.8 million and $0.9 million as
of February 28, 2017 and November 30, 2016, respectively.
Related-party balances recorded within "Accounts payable and other
current liabilities" in the unaudited condensed consolidated
balance sheets were $6.4 million and $19.7 million due to Sponsors
as of February 28, 2017 and November 30, 2016, respectively, and
$1.0 million due to tax equity investors as of both February 28,
2017 and November 30, 2016. Related-party balances recorded within
"Short-term debt and financing obligations" and "Long-term debt and
financing obligations" in the unaudited condensed consolidated
balance sheets were $2.2 million and $47.8 million, respectively,
as of February 28, 2017, and $2.0 million and zero, respectively,
as of November 30, 2016.
|
8point3
Energy Partners LP Condensed Consolidated Statements
of Operations (In thousands, except per share
data) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
February
28,
|
|
|
February
29,
|
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Operating
revenues1
|
|
$
|
9,897
|
|
|
$
|
7,102
|
|
Total
revenues
|
|
|
9,897
|
|
|
|
7,102
|
|
Operating costs and
expenses1:
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
2,222
|
|
|
|
1,266
|
|
Selling, general and
administrative
|
|
|
1,902
|
|
|
|
1,636
|
|
Depreciation and
accretion
|
|
|
6,763
|
|
|
|
4,626
|
|
Acquisition-related
transaction costs
|
|
|
13
|
|
|
|
833
|
|
Total operating costs
and expenses
|
|
|
10,900
|
|
|
|
8,361
|
|
Operating
loss
|
|
|
(1,003)
|
|
|
|
(1,259)
|
|
Other expense
(income):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
5,495
|
|
|
|
2,873
|
|
Interest
income
|
|
|
(271)
|
|
|
|
(285)
|
|
Other expense
(income):
|
|
|
(834)
|
|
|
|
74
|
|
Total other expense,
net
|
|
|
4,390
|
|
|
|
2,662
|
|
Loss before income
taxes
|
|
|
(5,393)
|
|
|
|
(3,921)
|
|
Income tax
provision
|
|
|
(533)
|
|
|
|
(3,537)
|
|
Equity in earnings of
unconsolidated investees
|
|
|
606
|
|
|
|
405
|
|
Net loss
|
|
|
(5,320)
|
|
|
|
(7,053)
|
|
Less: Net loss
attributable to noncontrolling interests and redeemable noncontrolling interests
|
|
|
(6,181)
|
|
|
|
(12,361)
|
|
Net income
attributable to 8point3 Energy Partners LP Class A shares
|
|
$
|
861
|
|
|
$
|
5,308
|
|
Net income per Class
A share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
|
$
|
0.27
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.27
|
|
Distributions per
Class A share:
|
|
$
|
0.25
|
|
|
$
|
0.22
|
|
Weighted average
number of Class A shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,073
|
|
|
|
20,007
|
|
Diluted
|
|
|
43,573
|
|
|
|
35,507
|
|
|
|
1
|
The Partnership has
related-party activities for transactions made with the Sponsors.
Related party transactions recorded within "Operating revenues" in
the unaudited condensed consolidated statement of operations were
$1.3 million for each of the three months ended February 28, 2017
and February 29, 2016. Related party transactions recorded within
"Operating costs and expenses" in the unaudited condensed
consolidated statement of operations were $2.0 million and $1.4
million for the three months ended February 28, 2017 and February
29, 2016, respectively.
|
8point3 Energy
Partners LP Condensed Consolidated Statements of Cash
Flows (In thousands) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
February
28,
|
|
|
February
29,
|
|
|
|
2017
|
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,320)
|
|
|
$
|
(7,053)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
|
6,871
|
|
|
|
4,626
|
|
Unrealized loss (gain)
on interest rate swap
|
|
|
(670)
|
|
|
|
74
|
|
Distributions from
unconsolidated investees
|
|
|
1,107
|
|
|
|
2,694
|
|
Equity in earnings of
unconsolidated investees
|
|
|
(606)
|
|
|
|
(405)
|
|
Deferred income
taxes
|
|
|
531
|
|
|
|
3,537
|
|
Share-based
compensation
|
|
|
56
|
|
|
|
56
|
|
Amortization of debt
issuance costs
|
|
|
237
|
|
|
|
153
|
|
Other, net
|
|
|
(8)
|
|
|
|
95
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
and financing receivable, net
|
|
|
501
|
|
|
|
(546)
|
|
Prepaid and other
current assets
|
|
|
5,627
|
|
|
|
(550)
|
|
Deferred
revenue
|
|
|
(319)
|
|
|
|
(336)
|
|
Accounts payable and
other current liabilities
|
|
|
1,457
|
|
|
|
553
|
|
Net cash provided by
operating activities
|
|
|
9,464
|
|
|
|
2,898
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Cash provided by (used
in) purchases of property and equipment
|
|
|
(86)
|
|
|
|
1,341
|
|
Cash paid for
acquisitions
|
|
|
(304,432)
|
|
|
|
(4,887)
|
|
Distributions from
unconsolidated investees
|
|
|
16,604
|
|
|
|
3,584
|
|
Net cash provided by
(used in) investing activities
|
|
|
(287,914)
|
|
|
|
38
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of bank loans, net of issuance costs
|
|
|
275,987
|
|
|
|
—
|
|
Repayment of
promissory note to First Solar
|
|
|
(1,964)
|
|
|
|
—
|
|
Capital contributions
from SunPower
|
|
|
—
|
|
|
|
9,973
|
|
Cash distribution to
Class A shareholders
|
|
|
(6,990)
|
|
|
|
(4,341)
|
|
Cash distributions to
Sponsors as OpCo unit holders
|
|
|
(12,699)
|
|
|
|
—
|
|
Cash contributions
from noncontrolling interests and redeemable
noncontrolling interests -
tax equity investors
|
|
|
18,750
|
|
|
|
—
|
|
Cash distributions to
noncontrolling interests and redeemable noncontrolling
interests - tax equity
investors
|
|
|
(1,885)
|
|
|
|
(484)
|
|
Net cash provided by
financing activities
|
|
|
271,199
|
|
|
|
5,148
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(7,251)
|
|
|
|
8,084
|
|
Cash and cash
equivalents, beginning of period
|
|
|
14,261
|
|
|
|
56,781
|
|
Cash and cash
equivalents, end of period
|
|
$
|
7,010
|
|
|
$
|
64,865
|
|
Non-cash
transactions:
|
|
|
|
|
|
|
|
|
Issuance by OpCo of
promissory note to First Solar in connection with the Stateline Acquisition
|
|
$
|
50,000
|
|
|
$
|
—
|
|
Property and equipment
acquisitions funded by liabilities
|
|
|
4,287
|
|
|
|
3,435
|
|
Noncontrolling
interests obtained through acquisition
|
|
|
1,078
|
|
|
|
864
|
|
Accrued distributions
to noncontrolling interests and redeemable noncontrolling interests - tax equity
investors
|
|
|
581
|
|
|
|
630
|
|
Non-GAAP Financial Measures
Our management uses a variety of financial metrics to analyze
our performance. The key financial metrics we evaluate are Adjusted
EBITDA and cash available for distribution.
Adjusted EBITDA. We define Adjusted EBITDA as net income
(loss) plus interest expense, net of interest income, income tax
provision, depreciation, amortization and accretion, including our
proportionate share of net interest expense, income taxes and
depreciation, amortization and accretion from our unconsolidated
affiliates that are accounted for under the equity method, and
share-based compensation and transaction costs incurred for our
acquisitions of projects; and excluding the effect of certain other
non-cash or non-recurring items that we do not consider to be
indicative of our ongoing operating performance such as, but not
limited to, mark to market adjustments to the fair value of
derivatives related to our interest rate hedges. Adjusted EBITDA is
a non-U.S. GAAP financial measure. This measurement is not
recognized in accordance with U.S. GAAP and should not be viewed as
an alternative to U.S. GAAP measures of performance. The U.S. GAAP
measure most directly comparable to Adjusted EBITDA is net income
(loss). The presentation of Adjusted EBITDA should not be construed
as an inference that our future results will be unaffected by
unusual or non-recurring items.
We believe Adjusted EBITDA is useful to investors in evaluating
our operating performance because securities analysts and other
interested parties use such calculations as a measure of financial
performance and borrowers' ability to service debt. In addition,
Adjusted EBITDA is used by our management for internal planning
purposes including certain aspects of our consolidated operating
budget and capital expenditures. It is also used by investors to
assess the ability of our assets to generate sufficient cash flows
to make distributions to our Class A shareholders.
However, Adjusted EBITDA has limitations as an analytical tool
because it does not reflect our cash expenditures or future
requirements for capital expenditures or contractual commitments,
does not reflect changes in, or cash requirements for, working
capital, does not reflect significant interest expense or the cash
requirements necessary to service interest or principal payments on
our outstanding debt or cash distributions on tax equity, does not
reflect payments made or future requirements for income taxes, and
excludes the effect of certain other cash flow items, all of which
could have a material effect on our financial condition and results
of operations. Adjusted EBITDA is a non-U.S. GAAP measure and
should not be considered an alternative to net income (loss) or any
other performance measure determined in accordance with U.S. GAAP,
nor is it indicative of funds available to fund our cash needs. In
addition, our calculations of Adjusted EBITDA are not necessarily
comparable to EBITDA as calculated by other companies. Investors
should not rely on these measures as a substitute for any U.S. GAAP
measure, including net income (loss).
Cash Available for Distribution. We use cash available
for distribution, which we define as Adjusted EBITDA less equity in
earnings of unconsolidated affiliates, cash interest paid, cash
income taxes paid, maintenance capital expenditures, cash
distributions to noncontrolling interests and principal
amortization of indebtedness plus cash distributions from
unconsolidated affiliates, indemnity payments and working capital
loans from Sponsors, test electricity generation, cash proceeds
from sales-type residential leases, state and local rebates and
cash proceeds for reimbursable network upgrade costs. Our cash flow
is generated from distributions we receive from OpCo each quarter.
OpCo's cash flow is generated primarily from distributions from the
Project Entities. As a result, our ability to make distributions to
our Class A shareholders depends primarily on the ability of the
Project Entities to make cash distributions to OpCo and the ability
of OpCo to make cash distributions to its unitholders.
We believe cash available for distribution is useful to
investors in evaluating our operating performance because
securities analysts and other interested parties use such
calculations as a measure of our ability to make our distributions.
In addition, cash available for distribution is used by our
management team for determining future acquisitions and managing
our growth. The U.S. GAAP measure most directly comparable to cash
available for distribution is net income (loss).
However, cash available for distribution has limitations as an
analytical tool because it does not capture the level of capital
expenditures necessary to maintain the operating performance of our
projects, does not include changes in operating assets and
liabilities and excludes the effect of certain other cash flow
items, all of which could have a material effect on our financial
condition and results from operations. Cash available for
distribution is a non-U.S. GAAP measure and should not be
considered an alternative to net income (loss) or any other
performance measure determined in accordance with U.S. GAAP, nor is
it indicative of funds available to fund our cash needs. In
addition, our calculations of cash available for distribution are
not necessarily comparable to cash available for distribution as
calculated by other companies. Investors should not rely on these
measures as a substitute for any U.S. GAAP measure, including net
income (loss).
The following table presents a reconciliation of net income
(loss) to Adjusted EBITDA and cash available for distribution for
the three months ended February 28,
2017, November 30, 2016 and
February 29, 2016:
8point3 Energy
Partners LP Reconciliation of Net Income (Loss) to
Adjusted EBITDA and Cash Available for Distribution
(CAFD) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
February
28,
|
|
|
November
30,
|
|
|
February
29,
|
|
(in
thousands)
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Net income
(loss)
|
|
$
|
(5,320)
|
|
|
$
|
4,250
|
|
|
$
|
(7,053)
|
|
Add
(Less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
|
5,224
|
|
|
|
2,664
|
|
|
|
2,588
|
|
Income tax
provision
|
|
|
533
|
|
|
|
2,963
|
|
|
|
3,537
|
|
Depreciation,
amortization and accretion
|
|
|
6,871
|
|
|
|
6,556
|
|
|
|
4,626
|
|
Share-based
compensation
|
|
|
56
|
|
|
|
56
|
|
|
|
56
|
|
Acquisition-related
transaction costs (1)
|
|
|
13
|
|
|
|
10
|
|
|
|
833
|
|
Unrealized gain
(loss) on derivatives (2)
|
|
|
(670)
|
|
|
|
(972)
|
|
|
|
74
|
|
Add proportionate
share from equity method
investments (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of interest income
|
|
|
130
|
|
|
|
(375)
|
|
|
|
(42)
|
|
Depreciation,
amortization and accretion
|
|
|
6,224
|
|
|
|
3,142
|
|
|
|
3,052
|
|
Adjusted
EBITDA
|
|
$
|
13,061
|
|
|
$
|
18,294
|
|
|
$
|
7,671
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (3) above (4)
|
|
|
(6,960)
|
|
|
|
(7,604)
|
|
|
|
(3,415)
|
|
Cash interest paid
(5)
|
|
|
(4,761)
|
|
|
|
(3,000)
|
|
|
|
(2,788)
|
|
Cash income taxes
paid
|
|
|
—
|
|
|
|
(2)
|
|
|
|
—
|
|
Maintenance capital
expenditures
|
|
|
—
|
|
|
|
(50)
|
|
|
|
—
|
|
Cash distributions to
non-controlling interests
|
|
|
(1,885)
|
|
|
|
(2,412)
|
|
|
|
(484)
|
|
Short-term note
(6)
|
|
|
(1,964)
|
|
|
|
—
|
|
|
|
—
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions
from unconsolidated affiliates (7)
|
|
|
17,711
|
|
|
|
14,054
|
|
|
|
6,424
|
|
Indemnity payment from
Sponsors (8)
|
|
|
65
|
|
|
|
279
|
|
|
|
9,973
|
|
State and local
rebates (9)
|
|
|
—
|
|
|
|
—
|
|
|
|
299
|
|
Cash proceeds from
sales-type residential leases, net (10)
|
|
|
671
|
|
|
|
649
|
|
|
|
641
|
|
Test electricity
generation (11)
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
Cash proceeds for
reimbursable network upgrade costs (12)
|
|
|
6,123
|
|
|
|
222
|
|
|
|
—
|
|
Cash available for
distribution
|
|
$
|
22,071
|
|
|
$
|
20,430
|
|
|
$
|
18,321
|
|
|
|
(1)
|
Represents
acquisition-related financial advisory, legal and accounting fees
associated with ROFO Project interests purchased and expected to be
purchased by us in the future.
|
|
|
(2)
|
Represents the
changes in fair value of interest rate swaps that were not
designated as cash flow hedges.
|
|
|
(3)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
|
|
(4)
|
Equity in earnings of
unconsolidated affiliates represents the earnings from the Solar
Gen 2 Project, the North Star Project, the Lost Hills Blackwell
Project, the Henrietta Project, and the Stateline Project and is
included on our unaudited condensed consolidated statements of
operations.
|
|
|
(5)
|
Represents cash
interest payments related to OpCo's senior secured credit facility
and the Stateline Promissory Note.
|
|
|
(6)
|
Represents repayment
of a working capital loan from First Solar.
|
|
|
(7)
|
Cash distributions
from unconsolidated affiliates represent the cash received by OpCo
with respect to its 49% interest in the Solar Gen 2 Project, the
North Star Project, the Lost Hills Blackwell Project, the Henrietta
Project, and its 34% interest in the Stateline
Project.
|
|
|
(8)
|
Represents indemnity
payments from the Sponsors owed to OpCo in accordance with the
Omnibus Agreement.
|
|
|
(9)
|
State and local
rebates represent cash received from state or local governments for
owning certain solar power systems. The receipt of state and local
rebates is accounted for as a reduction in the asset carrying value
rather than operating revenue.
|
|
|
(10)
|
Cash proceeds from
sales-type residential leases, net, represent gross rental cash
receipts for sales-type leases, less sales-type revenue and lease
interest income that is already reflected in net income (loss)
during the period. The corresponding revenue for such leases was
recognized in the period in which such lease was placed in service,
rather than in the period in which the rental payment was received,
due to the characterization of these leases
under U.S. GAAP.
|
|
|
(11)
|
Test electricity
generation represents the sale of electricity that was generated
prior to COD by Macy's Maryland Project for the three months ended
February 28, 2017. Solar systems may begin generating electricity
prior to COD as a result of the installation and interconnection of
individual solar modules, which occurs over time during the
construction and commission period. The sale of test electricity
generation is accounted for as a reduction in the asset carrying
value rather than operating revenue prior to COD, even though it
generates cash for the related Project Entity.
|
|
|
(12)
|
Cash proceeds from a
utility company related to reimbursable network upgrade costs
associated with the Quinto Project and the Kingbird
Project.
|
8point3 Energy
Partners LP
|
FY 2017 Q2
Guidance
|
Reconciliation of
Net Income to Adjusted EBITDA and Cash Available for Distribution
(CAFD)
|
|
|
|
|
|
(in
millions)
|
|
Low
|
|
High
|
Net income
|
|
$
3.0
|
|
$
5.0
|
Add
(Less):
|
|
|
|
|
Interest expense, net
of interest income
|
|
6.3
|
|
6.3
|
Income tax
provision
|
|
1.3
|
|
1.8
|
Depreciation,
amortization and accretion
|
|
7.0
|
|
7.0
|
Share-based
compensation
|
|
0.1
|
|
0.1
|
Add proportionate
share from equity method investments (1):
|
|
|
|
|
Depreciation, amortization
and accretion
|
|
6.3
|
|
6.3
|
Adjusted
EBITDA
|
|
$
24.0
|
|
$
26.5
|
Less:
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (1)
|
|
(13.6)
|
|
(13.6)
|
Cash interest
paid
|
|
(6.3)
|
|
(6.3)
|
Cash distributions to
non-controlling interests
|
|
(2.4)
|
|
(2.4)
|
Add:
|
|
|
|
|
Cash distributions from
unconsolidated affiliates
|
|
9.2
|
|
9.2
|
Network upgrade
refund
|
|
3.5
|
|
3.5
|
Cash proceeds from
sales-type residential leases
|
|
0.6
|
|
0.6
|
Estimated cash
available for distribution
|
|
$
15.0
|
|
$
17.5
|
|
|
(1)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
8point3 Energy
Partners LP
|
FY 2017
Guidance
|
Reconciliation of
Net Income to Adjusted EBITDA and Cash Available for Distribution
(CAFD)
|
|
|
|
|
|
(in
millions)
|
|
Low
|
|
High
|
Net income
|
|
$
27.0
|
|
$
32.6
|
Add
(Less):
|
|
|
|
|
Interest expense, net
of interest income
|
|
24.3
|
|
24.3
|
Income tax
provision
|
|
3.4
|
|
4.4
|
Depreciation,
amortization and accretion
|
|
26.3
|
|
26.3
|
Share-based
compensation
|
|
0.2
|
|
0.2
|
Add proportionate
share from equity method investments (1):
|
|
|
|
|
Depreciation, amortization
and accretion
|
|
25.3
|
|
25.3
|
Adjusted
EBITDA
|
|
$
106.5
|
|
$
113.1
|
Less:
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (1)
|
|
(60.4)
|
|
(63.5)
|
Cash interest
paid
|
|
(24.3)
|
|
(24.3)
|
Cash distributions to
non-controlling interests
|
|
(9.2)
|
|
(9.2)
|
Add:
|
|
|
|
|
Cash distributions from
unconsolidated affiliates
|
|
65.1
|
|
71.1
|
Network upgrade
refund
|
|
13.2
|
|
13.2
|
Cash proceeds from
sales-type residential leases
|
|
2.6
|
|
2.6
|
Repayment of working capital
loan
|
|
(2.0)
|
|
(2.0)
|
Estimated cash
available for distribution
|
|
$
91.5
|
|
$
101.0
|
|
|
(1)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/8point3-energy-partners-reports-first-quarter-2017-results-300435457.html
SOURCE 8point3 Energy Partners LP