Core Insights - Altus Power, Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, representing an earnings surprise of 266.67% [1] - The company posted revenues of $58.68 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.75%, and showing a year-over-year increase from $45.08 million [2] - Altus Power shares have declined approximately 49.9% year-to-date, contrasting with the S&P 500's gain of 25.8% [3] Earnings Performance - Over the last four quarters, Altus Power has exceeded consensus EPS estimates two times [2] - The company had a previous quarter earnings surprise of 433.33%, with actual earnings of $0.16 per share against an expected $0.03 [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $46.76 million, while for the current fiscal year, it is $0.28 on revenues of $198.72 million [7] - The estimate revisions trend for Altus Power is 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 bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Altus Power's stock performance [5]

Installed Capacity and Growth - As of September 30, 2024, Altus Power has installed a cumulative total of 1,013 megawatts (MW) of solar energy systems, representing a 40% increase from 721 MW as of September 30, 2023[198]. - Cumulative megawatts installed increased from 896 MW as of December 31, 2023, to 1,013 MW as of September 30, 2024, marking a 13% increase[199]. - The company’s pipeline of opportunities totals over 1 gigawatt (GW), with 162 MW in the construction phase and 258 MW in the contract/negotiation phase[190]. - The company displaces over 800,000 tons of CO2 emissions annually, providing clean electricity equivalent to the consumption of over 100,000 homes[178]. - As of September 30, 2024, the total megawatts installed across various states reached 1,013 MW, with New York leading at 205 MW, representing 20.2% of the total[200]. Revenue and Financial Performance - Adjusted EBITDA for the three months ended September 30, 2024, was $36,966,000, up from $29,060,000 in the same period of 2023, reflecting a significant increase[209]. - Operating revenues increased by $13.6 million, or 30.2%, to $58.7 million for the three months ended September 30, 2024, compared to $45.1 million for the same period in 2023[234]. - Net income attributable to Altus Power, Inc. was $17.6 million for the three months ended September 30, 2024, compared to $5.3 million in the same period in 2023, reflecting a 230.9% increase[234]. - Operating revenues for the nine months ended September 30, 2024, increased by $30.8 million, or 25.5%, to $151.8 million compared to $121.0 million for the same period in 2023[257]. - Net income attributable to Altus Power, Inc. for the nine months ended September 30, 2024, was $62.8 million, a significant increase of $45.0 million, or 253.3%, from $17.8 million in the same period in 2023[257]. Power Purchase Agreements and Revenue Sources - The company has long-term power purchase agreements (PPAs) with over 450 enterprise entities and approximately 30,000 residential customers, supported by 300 MW of community solar projects[178]. - The company derives its operating revenues primarily from Power Purchase Agreements (PPAs), net metering credit agreements (NMCAs), solar renewable energy credits (SRECs), and performance-based incentives[211]. - Power sales under Power Purchase Agreements (PPAs) rose by $4.1 million, or 23.4%, to $21.5 million, while sales under Non-Market Contracts (NMCAs) increased by $5.1 million, or 36.7%, to $18.9 million[236]. - Power sales under Power Purchase Agreements (PPAs) rose by $11.8 million, or 27.4%, totaling $54.9 million, while sales under Non-Market Capacity Agreements (NMCAs) increased by $10.4 million, or 30.7%, to $44.4 million[259]. Expenses and Cost Management - General and administrative expenses rose by $1.6 million, or 19.9%, to $9.8 million, primarily due to increased personnel costs from a higher headcount[240]. - Total operating expenses increased by $9.2 million, or 26.8%, to $43.4 million, driven by higher costs in operations and general administration[234]. - The cost of operations increased by 52.0% to $11.9 million, primarily due to the expansion of the solar facility portfolio[238]. - General and administrative expenses rose by $8.2 million, or 34.5%, totaling $32.1 million, mainly due to increased personnel costs from higher headcount[261]. - Depreciation, amortization, and accretion expenses increased by $12.4 million, or 32.6%, to $50.4 million, attributed to a larger number of operating solar facilities[262]. Debt and Financing - The outstanding principal balance of the APAF Term Loan was $465.2 million as of September 30, 2024, down from $474.6 million as of December 31, 2023[288]. - The outstanding principal balance of the APAF II Term Loan was $104.5 million as of September 30, 2024, down from $112.8 million as of December 31, 2023[290]. - The outstanding principal balance of the APAF III Term Loan was $417.6 million as of September 30, 2024, down from $426.6 million as of December 31, 2023[295]. - The outstanding principal balance of the APAF IV Term Loan was $100.5 million as of September 30, 2024[298]. - The company borrowed $100.0 million under the APAGH Term Loan on December 27, 2023, to fund future growth needs[301]. Cash Flow and Liquidity - As of September 30, 2024, the company had total cash, cash equivalents, and restricted cash of $111.3 million[278]. - The company expects to have sufficient cash and cash flows from operations to meet working capital, debt service obligations, and anticipated required capital expenditures for at least the next 12 months[281]. - During the nine months ended September 30, 2024, the company provided $20.4 million from operating activities, a decrease from $49.1 million in the same period of 2023[315][316]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $261.6 million, compared to $428.5 million in 2023[318][319]. - Net cash provided by financing activities was $133.7 million for the nine months ended September 30, 2024, down from $264.0 million in 2023[320][321].

Financial Performance - Third quarter 2024 revenues reached $58.7 million, a 30% increase compared to $45.1 million in the same period of 2023[2] - GAAP net income for the third quarter 2024 was $8.6 million, up from $6.8 million in the third quarter 2023[3] - Adjusted EBITDA for the third quarter 2024 was $37.0 million, reflecting a 27% increase from $29.1 million in the third quarter 2023[4] - Operating revenues for the three months ended September 30, 2024, were $58,681 million, a 30.3% increase from $45,079 million in the same period of 2023[26] - Net income attributable to Altus Power, Inc. for the nine months ended September 30, 2024, was $62,792 million, compared to $17,772 million in the same period of 2023, reflecting a significant increase[26] - Net income for the nine months ended September 30, 2024, was $45,813, compared to $13,991 for the same period in 2023, representing a significant increase[30] - Adjusted EBITDA for the three months ended September 30, 2024, was $36,966, up from $29,060 in 2023, indicating a growth of approximately 27%[31] - Adjusted EBITDA margin for the nine months ended September 30, 2024, was 58%, compared to 63% in the same period of 2023[31] Operational Highlights - The company surpassed 1 GW in operating assets nationwide as of September 30, 2024[1] - The Community Solar subscriber base expanded to approximately 30,000 households across nine states[1] - Generated 333 million kilowatt hours of clean electric power in the third quarter 2024, avoiding approximately 232,000 metric tons of carbon dioxide[1] - The increase in operating revenues was primarily due to a greater number of solar energy facilities placed in service over the past twelve months[2] - The year-over-year growth in adjusted EBITDA was mainly driven by increased revenue from additional solar energy facilities, despite rising operating and administrative expenses[4] - The company focuses on generating clean power close to consumption points to address energy demands and alleviate transmission strain[2] Guidance and Projections - The company reaffirmed its revenue guidance for FY2024 in the range of $196-201 million and adjusted EBITDA guidance of $111-115 million[5] Cash Flow and Assets - Total current assets decreased to $138,770 million as of September 30, 2024, from $228,797 million as of December 31, 2023[27] - Cash and cash equivalents decreased to $96,899 million as of September 30, 2024, from $160,817 million as of December 31, 2023[27] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $20,359 million, down from $49,096 million in the same period of 2023[28] - Capital expenditures for the nine months ended September 30, 2024, were $57,640 million, compared to $89,344 million in the same period of 2023[28] - Proceeds from the issuance of long-term debt amounted to $211,451 million for the nine months ended September 30, 2024, compared to $311,642 million in the same period of 2023[28] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $107,600 million for the nine months ended September 30, 2024[28] - Total stockholders' equity increased to $514,810 million as of September 30, 2024, from $447,078 million as of December 31, 2023[27] Expenses and Liabilities - Total liabilities increased slightly to $1,656,235 million as of September 30, 2024, compared to $1,565,338 million as of December 31, 2023[27] - Cash paid for interest in the nine months ended September 30, 2024, was $46,556, compared to $25,017 in 2023, showing an increase of approximately 86%[29] - Cash paid for taxes decreased to $34 in the nine months ended September 30, 2024, from $85 in 2023[29] - Noncontrolling interest assumed through acquisitions was $2,100 in the nine months ended September 30, 2024, down from $13,500 in 2023[29] - The company reported a change in fair value of Alignment Shares liability of $(48,172) for the nine months ended September 30, 2024, compared to $(23,331) in 2023[30] - Depreciation, amortization, and accretion expense for the nine months ended September 30, 2024, was $50,447, compared to $38,054 in 2023[30] - Acquisition and entity formation costs for the three months ended September 30, 2024, were $765, up from $268 in 2023[30]

Core Viewpoint - Altus Power, Inc. (AMPS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings potential, which is expected to positively influence its stock price [1][2]. Earnings Estimates and Revisions - The company is projected to earn $0.28 per share for the fiscal year ending December 2024, reflecting a significant year-over-year increase of 660% [5]. - Over the past three months, the Zacks Consensus Estimate for Altus Power has risen by 217%, indicating a strong upward trend in earnings estimates [5]. Impact of Institutional Investors - Changes in earnings estimates are closely correlated with stock price movements, as institutional investors adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [3]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4]. - Altus Power's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [7].

Core Viewpoint - Altus Power, Inc. (AMPS) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive earnings outlook that could favorably impact its stock price [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Altus Power for the fiscal year ending December 2024 is projected at $0.18 per share, reflecting a significant change of 460% from the previous year's reported figure [5]. - Over the past three months, the Zacks Consensus Estimate for Altus Power has increased by 110.3%, indicating a strong upward trend in earnings estimates [5]. Zacks Rating System - The Zacks rating system is based on changes in earnings estimates, which are a strong predictor of near-term stock price movements [3][4]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [4]. - The upgrade of Altus Power to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [7].

Group 1 - Altus Power, Inc. (AMPS) has experienced a significant downtrend, with a stock decline of 33.6% over the past four weeks, indicating strong selling pressure [1] - The stock is currently in oversold territory, as indicated by an RSI reading of 27.35, suggesting that the heavy selling may be exhausting itself and a potential bounce back could occur [4] - Wall Street analysts have raised earnings estimates for AMPS by 115% over the last 30 days, indicating a consensus that the company may report better earnings than previously predicted [6] Group 2 - AMPS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which suggests a strong potential for price appreciation in the near term [6]

分组1 - Altus Power, Inc. reported quarterly earnings of $0.16 per share, significantly exceeding the Zacks Consensus Estimate of $0.03 per share, representing an earnings surprise of 433.33% [1] - The company posted revenues of $52.46 million for the quarter ended June 2024, which was 8.95% below the Zacks Consensus Estimate and an increase from $46.51 million year-over-year [1] - Over the last four quarters, Altus Power has surpassed consensus EPS estimates only once and has missed revenue estimates three times [1] 分组2 - The stock has underperformed, losing approximately 50.4% since the beginning of the year, while the S&P 500 has gained 9% [2] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $62.84 million, and for the current fiscal year, it is $0.04 on revenues of $209.26 million [4] - The Zacks Industry Rank for Alternative Energy - Other is in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Second Quarter Earnings Presentation August 8, 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 ...

Financial Data and Key Metrics Changes - In Q2 2024, the company generated $52.5 million in revenue, a 13% increase from $46.5 million in Q2 2023, driven by portfolio growth and increased sales of clean electricity [21] - GAAP net income for the quarter was $33.1 million, compared to $3.4 million in Q2 2023, primarily due to a non-cash gain from the remeasurement of alignment shares and an income tax benefit [21] - Adjusted EBITDA was reported at $31.2 million, a 2% increase from $30.6 million in Q2 2023, attributed to portfolio growth but partially offset by higher operating and administrative expenses [22] Business Line Data and Key Metrics Changes - The company generated 364 million kilowatt hours of clean electricity from its nearly 1-gigawatt portfolio of operating assets [21] - Community solar credits accumulated during the quarter are expected to be recognized as revenue in the second half of 2024, with an estimated $4 million worth of revenue deferred from Q2 [23][48] Market Data and Key Metrics Changes - The company anticipates a slower ramp-up in incremental megawatt additions than previously expected, revising its 2024 revenue guidance to $196 million to $201 million and adjusted EBITDA to $111 million to $115 million [24] - The company remains focused on markets with attractive economics for landlords and tenants, particularly in states like Maryland, Maine, and Illinois, which are expanding community solar programs [37] Company Strategy and Development Direction - The company is prioritizing resources on technology and analytical teams to improve revenues and operating efficiency while deprioritizing non-core activities [8] - A three-pronged approach to analyzing the go-to-market strategy has been implemented, focusing on education, feedback from channel partners, and evaluating project timelines [12] - The company aims to leverage its partnership with CBRE to enhance enterprise customer engagement and pursue a more targeted, market-specific approach [15] Management's Comments on Operating Environment and Future Outlook - Management remains focused on long-term investment decisions and risk management, indicating that the pace of asset growth may be uneven in the short term [19] - The company is confident in its three-year guidance of 20% to 30% CAGR on megawatt growth despite the anticipated slower growth in 2024 [24] - Management believes the current environment is favorable for clean power companies, with opportunities for market share growth through competitive advantages [26] Other Important Information - The company finished Q2 2024 with a total cash balance of $92.3 million and has fully repaid borrowings under a corporate revolver [25] - The company has a robust pipeline of acquisition opportunities, particularly as market consolidation continues [44] Q&A Session Summary Question: How does the company plan to educate further and develop relationships with enterprises? - The company is restructuring its engagement with enterprises through partnerships, particularly with CBRE, to provide long-term advisory relationships rather than narrow solar-specific engagements [31][32] Question: What percentage of existing contracts have floating rates? - Currently, 54% of the company's Power Purchase Agreements (PPAs) are at floating rates, which will benefit from prevailing utility rate increases [35] Question: What markets are being targeted for near-term opportunities? - The company is focusing on states like Maryland, Maine, and Illinois, which are introducing programs that expand community solar opportunities [37] Question: What is the reason for the reduction in 2024 guidance? - The reduction is primarily due to utility and interconnection delays pushing out the timing of new build projects rather than a decrease in the number of megawatts [40][41] Question: What is the expected value of deferred community solar credits? - The deferred revenue from community solar credits generated in Q2 is estimated to be about $4 million, expected to be recognized in Q3 and Q4 [48]

Part I - Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Altus Power, Inc.'s unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes for Q2 2024 and 2023 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Condensed Consolidated Statements of Operations show significant increases in net income and operating revenues for both the three and six months ended June 30, 2024, compared to the prior year, driven by portfolio growth and a substantial income tax benefit | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | :---------------------------- | :---------------------------- | | Operating revenues, net | $52,460 | $46,513 | $93,119 | $75,891 | | Total operating expenses | $35,501 | $34,506 | $77,776 | $63,633 | | Operating income | $16,959 | $12,007 | $15,343 | $12,258 | | Income before income taxes | $12,110 | $4,499 | $21,061 | $9,232 | | Income tax benefit (expense) | $21,039 | $(1,129) | $16,143 | $(2,017) | | Net income | $33,149 | $3,370 | $37,204 | $7,215 | | Net income attributable to Altus Power, Inc. | $37,645 | $6,825 | $45,154 | $12,442 | | Basic EPS | $0.23 | $0.04 | $0.28 | $0.08 | | Diluted EPS | $0.23 | $0.04 | $0.27 | $0.08 | - Net income attributable to Altus Power, Inc. significantly increased by **$30,820 thousand** for the three months ended June 30, 2024, and by **$32,712 thousand** for the six months ended June 30, 2024, compared to the same periods in 2023[8](index=8&type=chunk)[225](index=225&type=chunk)[249](index=249&type=chunk) - Operating revenues, net, increased by **12.8% to $52,460 thousand** for the three months ended June 30, 2024, and by **22.7% to $93,119 thousand** for the six months ended June 30, 2024, primarily due to an increased number of operating solar energy facilities[8](index=8&type=chunk)[225](index=225&type=chunk)[251](index=251&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The Condensed Consolidated Statements of Comprehensive Income show a substantial increase in total comprehensive income for Altus Power, Inc. for the three and six months ended June 30, 2024, primarily driven by higher net income, despite a reclassification of realized gain on cash flow hedge to net income | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | :---------------------------- | :---------------------------- | | Net income | $33,149 | $3,370 | $37,204 | $7,215 | | Other comprehensive (loss) income, net of tax | $(433) | $3,770 | $(828) | $3,008 | | Total comprehensive income | $32,716 | $7,140 | $36,376 | $10,223 | | Comprehensive income attributable to Altus Power, Inc. | $37,212 | $10,595 | $44,326 | $15,450 | - Comprehensive income attributable to Altus Power, Inc. increased by **$26,617 thousand (251.2%)** for the three months ended June 30, 2024, and by **$28,876 thousand (186.9%)** for the six months ended June 30, 2024, compared to the same periods in 2023[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets show an increase in total assets and total equity as of June 30, 2024, compared to December 31, 2023, primarily driven by growth in property, plant and equipment, and a decrease in current portion of restricted cash | Metric | As of June 30, 2024 (in thousands) | As of December 31, 2023 (in thousands) | | :------------------------------------ | :------------------------- | :----------------------------- | | Total assets | $2,131,947 | $2,090,349 | | Total liabilities | $1,568,700 | $1,565,338 | | Total equity | $540,356 | $498,967 | | Cash and cash equivalents | $78,379 | $160,817 | | Current portion of restricted cash | $1,166 | $45,358 | | Property, plant and equipment, net | $1,751,125 | $1,619,047 | | Long-term debt, net | $1,180,168 | $1,163,307 | | Alignment Shares liability | $22,534 | $60,502 | | Metric | As of June 30, 2024 (in thousands) | As of December 31, 2023 (in thousands) | | :------------------------------------ | :------------------------- | :----------------------------- | | Total assets of consolidated VIEs | $1,005,410 | $958,656 | | Total liabilities of consolidated VIEs | $166,822 | $149,936 | - Total assets increased by **$41,598 thousand (2.0%)** from December 31, 2023, to June 30, 2024, primarily due to an increase in property, plant and equipment, net[12](index=12&type=chunk) - The Alignment Shares liability decreased significantly from **$60,502 thousand** at December 31, 2023, to **$22,534 thousand** at June 30, 2024, reflecting a gain on fair value remeasurement[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) The Condensed Consolidated Statements of Changes in Stockholders' Equity reflect an increase in total equity from December 31, 2023, to June 30, 2024, driven by net income and noncontrolling interest contributions, partially offset by stock-based compensation benefit and distributions | Metric | As of June 30, 2024 (in thousands) | As of December 31, 2023 (in thousands) | | :-------------------------------------- | :------------------------- | :----------------------------- | | Total Stockholders' Equity | $490,522 | $447,078 | | Non Controlling Interests | $49,834 | $51,889 | | Total Equity | $540,356 | $498,967 | | Net income (loss) | $45,154 | $45,154 | | Stock-based compensation (benefit) | $(892) | $(892) | | Cash contributions from noncontrolling interests | $4,103 | $4,103 | - Total equity increased by **$41,389 thousand** from December 31, 2023, to June 30, 2024, primarily due to net income of **$45,154 thousand** and cash contributions from noncontrolling interests of **$4,103 thousand**[21](index=21&type=chunk) - Stock-based compensation resulted in a benefit of **$892 thousand** for the six months ended June 30, 2024, contributing to the change in additional paid-in capital[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows indicate a net decrease in cash, cash equivalents, and restricted cash for the six months ended June 30, 2024, primarily due to significant cash used in investing activities, partially offset by cash provided by financing activities | Cash Flow Activity | Six Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | | :------------------------------------------------ | :---------------------------- | :---------------------------- | | Net cash (used for) provided by operating activities | $(1,078) | $25,491 | | Net cash used for investing activities | $(166,208) | $(373,318) | | Net cash provided by financing activities | $40,637 | $232,564 | | Net decrease