Core Insights - Altus Power has acquired three ground-mounted solar projects in Florida, totaling 8.6 MWs [1] - The projects were purchased from Origis Energy and are already operational, delivering power to a local utility through long-term power purchase agreements (PPAs) [1] - The company emphasizes its strong reputation for execution and responsible stewardship of acquired projects [1]

Company Overview - Altus Power, Inc. (AMPS) is part of the Oils-Energy sector, which includes 247 companies and is currently ranked 7 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a favorable earnings outlook [3] Performance Metrics - Altus Power, Inc. has returned approximately 21.4% year-to-date, significantly outperforming the average return of 4.5% for Oils-Energy companies [4] - The Zacks Consensus Estimate for AMPS' full-year earnings has increased by 2.1% over the past quarter, reflecting improved analyst sentiment [4] Industry Comparison - Altus Power, Inc. belongs to the Alternative Energy - Other industry, which consists of 47 companies and is currently ranked 82 in the Zacks Industry Rank [6] - The Alternative Energy - Other industry has gained about 2.7% year-to-date, indicating that AMPS is performing better than its industry peers [6] Competitor Analysis - Magnolia Oil & Gas Corp (MGY), another stock in the Oils-Energy sector, has a year-to-date return of 8.3% and also holds a Zacks Rank of 2 (Buy) [5] - The Oil and Gas - Exploration and Production - United States industry, to which Magnolia belongs, has declined by 17.4% year-to-date, highlighting the relative strength of AMPS [7]

Core Viewpoint - Altus Power, Inc. reported a quarterly loss of $0.32 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -700% [1] Financial Performance - The company posted revenues of $44.47 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.48%, but showing an increase from $34.19 million year-over-year [2] - Over the last four quarters, Altus Power has surpassed consensus EPS estimates two times [2] Stock Performance - Altus Power shares have increased approximately 21.6% since the beginning of the year, contrasting with a -4.1% decline in the S&P 500 [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.07 for the coming quarter and -$0.10 for the current fiscal year [4][7] - The estimate revisions trend for Altus Power is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Alternative Energy - Other industry, to which Altus Power belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Company Overview - Altus Power owns over 1 gigawatt (GW) of solar PV systems and has long-term power purchase agreements (PPAs) with over 450 enterprise entities[15]. - The company serves over 36,000 residential customers through 360 megawatts (MW) of community solar projects, providing clean electricity equivalent to the consumption of approximately 100,000 homes[15]. - Altus Power displaces over 800,000 tons of CO2 emissions annually through its clean energy initiatives[15]. - Altus Power operates in 25 states and participates in various solar renewable energy credit (SREC) programs across the country[15]. Market Opportunity - The U.S. spends $400 billion on electricity each year, with $200 billion allocated to commercial and industrial (C&I) customers, indicating a significant market opportunity[29]. - C&I customers are projected to spend over $6 trillion on electricity between now and 2050, highlighting the growth potential in this sector[29]. - The solar energy market has penetrated less than 5% of its total addressable market in the U.S. C&I sector, indicating significant room for growth[67]. Technology and Innovation - Altus Power is developing a next-generation proprietary software stack that incorporates artificial intelligence and machine learning to enhance operational efficiency[36]. - The company must continuously innovate and develop new products to remain competitive in a rapidly changing technological landscape[78]. - The company's future growth depends on developing and maintaining proprietary technology for solar service offerings[168]. Merger Agreement - The company has entered into a merger agreement with Avenger Parent, Inc., with each share of Class A common stock valued at $5.00[21]. - The proposed merger is expected to close in the second quarter of 2025, subject to customary conditions and stockholder approval[23]. - The Merger Agreement stipulates a fixed cash payment of $5.00 per share for Class A common stock, which is not subject to adjustment based on the company's future performance or market conditions[142]. - If the Merger is not completed by November 5, 2025, either party may terminate the Merger Agreement, potentially incurring significant costs and management distraction[143]. - The company may be required to pay a termination fee of up to $60 million under certain conditions if the Merger Agreement is terminated[139]. - The Merger may cause substantial disruptions in business operations, affecting relationships with employees, customers, and suppliers[133]. - The company is subject to restrictions on business activities while the Merger is pending, which may hinder strategic opportunities[135]. - Litigation challenging the Merger Agreement could delay or prevent its consummation, impacting the expected timeline[141]. - The company has incurred significant costs related to the Merger, including regulatory fees and professional services, which may not yield benefits if the Merger does not proceed[140]. - The Merger Agreement contains provisions that may discourage competing acquisition proposals, potentially affecting the company's valuation[136]. Financial Performance - The company reported net revenue of $196.3 million, $155.2 million, and $101.2 million for the years ended December 31, 2024, 2023, and 2022, respectively, indicating significant growth[122]. - As of December 31, 2024, the company had U.S. federal net operating loss carryforwards of approximately $523.7 million and state net operating loss carryforwards of approximately $392.8 million, which begin expiring in varying amounts in 2034 and 2025[115]. - The company may need to raise additional capital in the future to scale its business and expand to new markets, with potential funding sources including equity issuance and debt securities[114]. Regulatory Environment - The Inflation Reduction Act of 2022 (IRA) provides a 30% investment tax credit (ITC) for solar power facilities installed between 2022 and 2032, contingent on meeting wage and apprenticeship requirements[45]. - The IRA includes additional incentives for solar facilities located in low-income communities, potentially providing a 20% bonus if low-income households receive at least half of the financial benefits[47]. - The company heavily relies on government policies supporting utility-scale renewable energy, which could significantly impact its business if these incentives are reduced or eliminated[149]. - Future regulatory changes could impose significant restrictions on the company's operations, potentially increasing costs and competitive pressures[146]. - The absence of net energy metering policies in some states may significantly reduce demand for the company's solar energy systems, impacting sales[152]. - Regulatory challenges regarding third-party-owned solar energy systems could adversely affect demand and access to capital for the company[155]. - Changes in electric utility regulations may present barriers to the purchase and use of solar energy offerings, potentially reducing demand[157]. - Proposed fees on solar energy system customers could increase costs and reduce demand for the company's products and services[158]. - The company is subject to complex laws and regulations, and failure to comply may adversely affect its operations and results[167]. Operational Risks - The company faces competition from traditional utilities and other renewable energy companies, which could impact its market position[62]. - Recent increases in solar panel prices may adversely affect the company's financial results, despite previous benefits from declining costs[62]. - The company may encounter risks related to project development, including financing, construction, and regulatory approvals, which could impede operations[62]. - The company is experiencing increased costs for solar panels and raw materials, which may slow growth and negatively impact financial results[75]. - The Uyghur Forced Labor Prevention Act has caused delays in the supply chain for polysilicon, affecting the availability of essential materials for solar modules[73]. - The company is diversifying its supplier base to mitigate risks associated with tariffs and supply chain disruptions, which may lead to delays[77]. - The company is subject to operational risks that could materially affect its financial condition and results, including equipment failures and weather-related disruptions[82]. - The company faces potential adverse effects from severe weather conditions, which can impact electricity demand, revenue, and operational costs[108]. - Cyberattacks and terrorist threats pose risks to the company's operations, potentially limiting its ability to generate and transmit power, affecting revenue and increasing costs[110]. - Disruptions in information technology systems or cybersecurity incidents could adversely affect the company's business operations[170]. Employee and Organizational Structure - As of December 31, 2024, Altus had 113 full-time employees, with no representation by labor unions[51]. - The company aims to create an inclusive environment and plans to form a diversity and inclusion committee to enhance recruitment and awareness[53]. - The company plans to grant stock options and other equity awards to attract and retain employees, but current stock options have exercise prices greater than the current stock price[103]. - The company had 113 full-time employees as of December 31, 2024, and may struggle to maintain an attractive incentive compensation structure to retain talent[104]. Strategic Relationships and Growth - The company is investing in establishing strategic relationships with third parties to generate new customers, but these programs may not produce anticipated results[96]. - The company may not realize anticipated benefits from acquisitions of solar project portfolios, as performance may vary across individual projects[95]. - The company’s business model relies on providing solar systems profitably through organic growth, geographic expansion, and strategic acquisitions[202]. Risks and Challenges - The company faces risks related to protecting its intellectual property, which could harm its competitive position and revenue[169]. - Estimates of market opportunity and growth forecasts may prove to be inaccurate, affecting the company's strategic planning and market positioning[123]. - The company may experience limitations on the use of its net operating loss carryforwards due to ownership changes, which could adversely impact its financial condition[116]. - Concentration of ownership among executive officers and directors may prevent new investors from influencing significant corporate decisions[186]. - The market price of the company's common stock is expected to be volatile, influenced by various external factors[188]. - The company may issue additional shares of Class A common stock or other equity securities without stockholder approval, potentially diluting ownership interests[193]. - Adverse economic conditions, such as recession and inflation, may negatively affect the company's business strategy and ability to raise additional capital[201]. - Regulatory decisions influenced by political and economic factors may adversely affect the company's operations and financial condition[204]. - The company maintains a formal incident response plan and business continuity procedures to address cybersecurity threats[208]. - The Board of Directors receives quarterly updates on cybersecurity threats and incidents, ensuring oversight of the company's cybersecurity risks[211]. - The Chief Digital Officer, with over 20 years of experience, leads the company's efforts in managing cybersecurity threats and compliance[212].

Financial Performance - Fourth quarter 2024 operating revenues totaled $44.5 million, a 30% increase from $34.2 million in the same period of 2023[4] - Full year 2024 operating revenues reached $196.3 million, representing a 26% increase compared to $155.2 million in 2023[9] - Fourth quarter 2024 GAAP net loss was $56.5 million, compared to a net loss of $40.0 million in the same period last year[5] - Full year 2024 GAAP net loss totaled $10.7 million, an improvement from a net loss of $26.0 million in 2023[7] - Adjusted EBITDA for the fourth quarter of 2024 was $23.8 million, a 37% increase from $17.3 million in the fourth quarter of 2023[6] - Full year 2024 adjusted EBITDA amounted to $111.6 million, a 20% increase compared to $93.1 million in 2023[8] - Operating revenues for Q4 2024 were $44,465,000, a 30% increase from $34,192,000 in Q4 2023[35] - Net loss attributable to Altus Power, Inc. for Q4 2024 was $61,469,000, compared to a net loss of $27,127,000 in Q4 2023[35] - Adjusted EBITDA for the year ended December 31, 2024, was $111,621 thousand, an increase from $93,073 thousand in 2023[43] - Operating revenues for the year ended December 31, 2024, reached $196,265 thousand, up from $155,162 thousand in 2023[43] Cash and Assets - The company ended 2024 with a cash balance of $123 million[9] - Cash and cash equivalents decreased to $104,902,000 as of December 31, 2024, down from $160,817,000 as of December 31, 2023[37] - Total assets increased to $2,348,963,000 as of December 31, 2024, compared to $2,090,349,000 as of December 31, 2023[37] - Long-term debt, net of unamortized debt issuance costs, was $1,192,379,000 as of December 31, 2024, compared to $1,163,307,000 in 2023[37] - Net cash provided by operating activities for the year ended December 31, 2024, was $40,348,000, down from $79,357,000 in 2023[40] - Capital expenditures for the year ended December 31, 2024, were $93,705,000, compared to $117,791,000 in 2023[40] Operational Highlights - The company surpassed 1 GW in operating assets and completed approximately 56 MW of new-build assets while adding around 96 MW of assets in operation[9] - Altus Power is focused on expanding its solar generation and energy storage capabilities across the nation[32] Mergers and Acquisitions - Altus Power signed a merger agreement with TPG for $5.00 per share, valuing the company at approximately $2.2 billion, including outstanding debt[10] - Due to the pending transaction with TPG, Altus Power will not provide a financial outlook for 2025[11] Expenses and Liabilities - Total operating expenses for Q4 2024 were $45,537,000, compared to $39,550,000 in Q4 2023, reflecting a 15% increase[35] - Interest expense, net for the year ended December 31, 2024, was $69,206 thousand, compared to $47,486 thousand in 2023[43] - Depreciation, amortization, and accretion expense for the year ended December 31, 2024, totaled $68,917 thousand, an increase from $53,627 thousand in 2023[43] - Stock-based compensation expense for the year ended December 31, 2024, was $9,213 thousand, down from $14,984 thousand in 2023[43] - Acquisition and entity formation costs for the year ended December 31, 2024, were $3,665 thousand, compared to $4,508 thousand in 2023[43] - Change in fair value of Alignment Shares liability resulted in a loss of $(41,023) thousand for the year ended December 31, 2024[43] - Loss on disposal of property, plant, and equipment for the year ended December 31, 2024, was $443 thousand, down from $649 thousand in 2023[43] Other Financial Metrics - Adjusted EBITDA margin for the three months ended December 31, 2024, was 53%, compared to 51% in the same period of 2023[43] - Net loss for the three months ended December 31, 2024, was $(56,480) thousand, compared to $(39,964) thousand for the same period in 2023[43] - The company reported a significant increase in accounts receivable, netting $21,808,000 as of December 31, 2024, compared to $17,100,000 in 2023[37]

Core Viewpoint - Kaskela Law LLC is investigating the fairness of the buyout of Altus Power, Inc. by TPG at a price of $5.00 per share, focusing on whether shareholders are receiving adequate consideration for their shares [1][3]. Summary by Sections Buyout Announcement - On February 5, 2025, Altus Power announced its agreement to be acquired by TPG for $5.00 per share in cash, resulting in shareholders being cashed out and the company's shares ceasing to be publicly traded [2]. Investigation Details - The investigation aims to assess if Altus Power's shareholders are receiving sufficient compensation and whether the company's officers or directors violated fiduciary duties or securities laws in agreeing to the buyout price [3]. - Analysts had set price targets for Altus Power's shares above $5.00, with at least one analyst recently targeting $7.00 per share [3]. Shareholder Communication - Altus Power shareholders are encouraged to contact Kaskela Law LLC for information regarding their legal rights and options related to the investigation [4].

Core Viewpoint - The Schall Law Firm is investigating potential breaches of fiduciary duty by the directors and management of Altus Power, Inc. in light of its recent acquisition announcement [1][2]. Group 1: Investigation Details - The investigation aims to determine if the Altus Power board has breached its fiduciary duties to shareholders [2]. - Altus Power announced an agreement to be acquired by TPG for $5.00 per share of its Class A common stock, valuing the company at approximately $2.2 billion, including outstanding debt [2]. Group 2: Shareholder Rights - Shareholders are encouraged to participate in the investigation and can contact the Schall Law Firm for discussions regarding their rights [3].

Core Viewpoint - Kaskela Law LLC is investigating the fairness of the proposed buyout of Altus Power, Inc. by TPG at a price of $5.00 per share, focusing on whether shareholders are receiving adequate consideration for their shares and if there were any breaches of fiduciary duties by the company's officers or directors [1][3]. Group 1: Buyout Details - On February 5, 2025, Altus Power announced an agreement to be acquired by TPG for $5.00 per share in cash, resulting in shareholders being cashed out and the company's shares ceasing to be publicly traded [2]. - The buyout price of $5.00 per share is under scrutiny as several analysts had price targets above this amount, with at least one analyst setting a target of $7.00 per share [3]. Group 2: Legal Investigation - The investigation by Kaskela Law LLC aims to assess the sufficiency of the buyout consideration and to determine if there were any violations of securities laws or fiduciary duties by Altus Power's management [3]. - Shareholders of Altus Power are encouraged to reach out to Kaskela Law LLC for information regarding their legal rights and options related to the investigation [4].

Financial Data and Key Metrics Changes - The company reported its third quarter 2024 earnings, with specific financial performance metrics discussed during the call [3][4]. Business Line Data and Key Metrics Changes - Detailed performance across various business lines was not provided in the available content [3]. Market Data and Key Metrics Changes - Specific market data and key metrics were not disclosed in the provided content [3]. Company Strategy and Development Direction and Industry Competition - The company emphasized its focus on future operations and financial performance, indicating a strategic outlook that may involve expansion and adaptation to market conditions [4][5]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the presence of risks and uncertainties that could impact future results, highlighting the importance of monitoring these factors [4][5]. Other Important Information - The company issued a press release and presentation related to the earnings call, which are accessible on its website [3]. Q&A Session All Questions and Answers Question: Inquiry about future operations and financial performance - Management discussed forward-looking statements regarding future operations, emphasizing the potential for variability in actual results due to various risks [4].

Investor Presentation November 2024 Cautionary Statements And Risk Factors That May Affect Future Results The following presentation for Altus Power, Inc. ("Altus Power" or the "Company") has been prepared by Altus Power's management. You should read the presentation together with our consolidated financial statements and related notes appearing in our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2024 (the "2023 Annual Report on Form 10-K"). Any refere ...