2023 Performance Highlights - Altus Power achieved record expansion during 2023, becoming the 1 market leader in commercial scale solar[8] - The company has over 450 enterprise customers[8] - As of December 31, 2023, Altus Power's portfolio reached 896 MWs[8] - Estimated Annual Recurring Revenues (ARR) from the year-end portfolio is $183 million[8] - Full year 2023 operating revenues reached $155 million[40] - Full year 2023 Adjusted EBITDA was $93 million, representing a 60% margin[40] - The company closed ~$470 million of new financings during Q4 2023[28] 2024 Guidance and Financing - Altus Power anticipates 2024 operating revenues in the range of $200 million to $222 million[12] - The company projects 2024 Adjusted EBITDA to be between $115 million and $135 million[12] - Blackstone Term Funding Facility will cover 60-70% of asset costs for new builds[30] - No equity financing is expected for the 2024 growth plan[31] Financial Results - The company reported a net loss of $26 million for 2023, compared to a net income of $522 million in 2022[11] - Fourth quarter 2023 net loss was $40 million, compared to a net income of $671 million in Q4 2022[18]

Financial Data and Key Metrics Changes - For Q4 2023, operating revenues increased to $34.2 million, up 28% from $26.8 million in Q4 2022. For the full year, revenues reached a record $155.2 million, a 53% increase from $101.2 million in 2022 [20][21] - GAAP net income for Q4 was a loss of $40 million, compared to a net income of $67.1 million in Q4 2022. For the full year, net loss was $26 million, down from a net income of $52.2 million in 2022 [20][21] - Adjusted EBITDA for Q4 was $17.3 million, a 5% increase from $16.6 million in Q4 2022. Full year adjusted EBITDA was $93.1 million, representing a 60% growth from $58.6 million in 2022 [21][22] Business Line Data and Key Metrics Changes - The company added 426 megawatts of assets in 2023, with 74 megawatts being new builds. The annual recurring revenue (ARR) from these assets is projected to be $183 million [10][22] - The company experienced operational downtime and onboarding delays, impacting revenue generation from new assets [12][13] Market Data and Key Metrics Changes - The company reported a significant increase in enterprise customers, growing by over 50% [9] - The company is pursuing over 1 gigawatt of new build opportunities and assets in operation, indicating strong market demand [15] Company Strategy and Development Direction - The company aims to maintain its leadership position in the commercial solar market by expanding its asset base and enhancing operational capabilities [9][15] - The company plans to grow its SG&A budget to support its market leadership and operational efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4 due to adverse weather conditions and operational downtime, but expressed confidence in achieving revenue targets for 2024, projecting revenues between $200 million and $222 million [12][14][23] - The company is focused on investor education and improving market communication, with plans for an Investor Day on May 14 [19] Other Important Information - The company closed a $200 million construction facility with Blackstone and announced a $163 million upsize of its term loan facility, enhancing its financial flexibility [24][25] - The company has no plans to issue dilutive equity, relying on existing cash and financing facilities to fund growth [25][51] Q&A Session Summary Question: Guidance and ARR - Management emphasized the importance of ARR in modeling future performance and indicated that they will provide more insights during the upcoming Investor Day [30][31] Question: Return Thresholds - Management noted that higher interest rates are translating into higher return opportunities, and they are focused on maintaining cash flow generation [36] Question: Q4 Generation Performance - Management explained that Q4 generation was significantly impacted by weather, with December being down over 20% from historical norms [40][64] Question: Project Timelines - Management indicated that project timelines vary by market, but they are expanding their workforce to improve construction timelines [42][44] Question: ARR and EBITDA per Megawatt - Management clarified that not all megawatts are equal in revenue potential, and the mix of new assets affects overall EBITDA per megawatt [48][49] Question: Financing Needs - Management reiterated their focus on avoiding dilutive equity and highlighted their strong cash position and access to non-dilutive financing [51][54] Question: M&A vs. Organic Growth - Management stated that they view acquisitions and organic growth as similar in terms of customer contracts and returns, with a focus on maintaining attractive returns [56]

Core Viewpoint - Altus Power, Inc. reported a quarterly loss of $0.04 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, marking a significant earnings surprise of -100% [1] - The company generated revenues of $34.19 million for the quarter, missing the Zacks Consensus Estimate by 20.21%, but showing an increase from $26.76 million year-over-year [1] Financial Performance - The quarterly loss of $0.04 per share compares to a loss of $0.03 per share a year ago, indicating a decline in performance [1] - Over the last four quarters, the company has consistently failed to meet consensus EPS estimates [1] - The company has exceeded consensus revenue estimates twice in the last four quarters [1] Market Performance - Altus Power, Inc. shares have decreased by approximately 12.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $41.85 million, and for the current fiscal year, it is -$0.04 on revenues of $225.54 million [4] - The estimate revisions trend for Altus Power, Inc. is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [4] Industry Context - The Alternative Energy - Other industry, to which Altus Power belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges ahead [5] - The performance of Altus Power's stock may be influenced by the overall outlook of the industry [5]

Company Overview - The company owns a portfolio of 896 megawatts (MW) of solar PV systems and has long-term power purchase agreements (PPAs) with over 450 enterprise entities[15] - The company serves over 20,000 residential customers through community solar projects, currently operating in 8 states, providing clean electricity equivalent to the consumption of over 100,000 homes[15] - The company displaces over 550,000 tons of CO2 emissions annually through its clean electricity generation[15] - The company has experienced significant growth due to organic expansion and targeted acquisitions, operating in 25 states[15] - The company has long-term power purchase agreements (PPAs) with over 450 enterprise entities and contracts with over 20,000 residential customers, serviced by over 240 MW of community solar projects[203] - The company experienced significant growth in the last fiscal year due to organic growth and targeted acquisitions, with a focus on becoming a "one-stop-shop" for clean energy transition[203][206] Market Potential - The total addressable market for electricity in the U.S. is approximately $400 billion annually, with $200 billion spent on commercial and industrial (C&I) electricity[23] - C&I customers are projected to spend over $6 trillion on electricity between now and 2050, indicating significant growth potential for the company[23] - Distributed solar has penetrated less than 5% of its total addressable market in the U.S. C&I sector, indicating significant growth potential[60] 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, which can enhance the company's project economics[38] - The company is eligible for an additional 10% or 20% energy community bonus under the IRA for certain ITC projects, contingent on meeting wage and apprenticeship requirements[40] - The company relies heavily on government policies that support renewable energy, and any reductions or modifications to these incentives could materially impact its business[121] - The Inflation Reduction Act extends the availability of investment tax credits, which the company expects to continue claiming for qualifying solar energy projects[122] - The absence of net energy metering policies in certain states may significantly reduce demand for electricity from the company's solar energy systems[123] - The company faces regulatory challenges related to third-party-owned solar energy systems, which could impact demand and pricing[128] - Changes in tax laws or market conditions could negatively affect the availability of tax equity for new solar energy projects[108] - Changes in federal, state, and local regulations may significantly reduce demand for solar energy offerings, impacting the company's financial condition and operations[129] - Proposed fees on customers purchasing solar energy systems could disproportionately affect demand, potentially harming the company's reputation and business[130] Financial Performance - The company reported net revenue of $155.2 million for the year ended December 31, 2023, compared to $101.2 million for the previous year, reflecting a growth of approximately 53%[114] - As of December 31, 2023, the company had U.S. federal net operating loss carryforwards of approximately $340.1 million, which begin expiring in 2034 if unused[109] - The company may need to raise additional capital in the future to scale its business and expand into new markets, potentially through equity or debt securities[108] - The company is subject to audits by taxing authorities, which could adversely affect its financial condition and results of operations[112] - The company’s financial results could be adversely affected by warranty expenses related to product quality or performance issues[99] - The company provides performance guarantees to customers, which could lead to financial losses if significant payments are triggered[101] - The company’s business is susceptible to adverse economic, regulatory, and weather conditions, which could impact operations and financial results[102] - The company’s ability to obtain insurance may be adversely affected by various events, potentially leading to increased costs[106] - The company is subject to various risks including economic conditions, regulatory changes, and fluctuations in customer demand for solar services, which could impact financial performance[180][182] Supply Chain and Operational Risks - The company faces competition from traditional utilities and other energy service providers, which may offer lower prices for electricity[56] - The recent increase in the price of solar panels may adversely affect the company's financial results, following a period of declining costs[52] - The company faces risks related to limited suppliers in the solar energy industry, which could adversely affect its ability to meet demand and financial performance[62] - Industry-wide shortages of key components, including solar panels, may lead to price increases and reduced supply, impacting the company's growth and profitability[63] - The U.S. government has imposed a protective tariff on solar panel components, which could increase costs and affect the company's ability to purchase competitively priced products[68] - The U.S. Department of Commerce has found that certain solar products are being circumvented through Southeast Asian countries, which may impede the company's ability to import solar modules[70] - The company is mitigating supply chain disruptions by diversifying suppliers and entering long-term flexible supply agreements[70] - The company has experienced increased costs for solar panels and raw materials, which could slow growth and negatively impact financial results[68] - The Uyghur Forced Labor Prevention Act has caused delays in polysilicon supply, affecting the solar module supply chain[65] - The company may face operational risks related to the maintenance and construction of facilities, which could adversely affect financial performance[75] Technology and Innovation - The company is developing a next-generation proprietary software stack that incorporates artificial intelligence and machine learning to improve operational efficiency and project performance tracking[29] - The company must continuously develop new products to keep pace with rapid technological changes in the market, which could involve substantial costs[71] - Delays in product development or failure to meet customer requirements could damage customer relationships and lead to loss of market share[73] - The company relies on proprietary technology for its solar service offerings, and failure to maintain this technology could harm its competitive position and revenue[143] Human Resources and Governance - As of December 31, 2023, Altus Power had 93 full-time employees, with no employees represented by a labor union[43] - As of December 31, 2023, the company had 93 full-time employees, and there are concerns about attracting and retaining skilled personnel in a competitive labor market[98] - Approximately 33% of the outstanding shares of Class A common stock are beneficially owned by directors, executive officers, and their affiliates, allowing them significant influence over corporate decisions[168] - The company has identified material weaknesses in its internal control over financial reporting, which could lead to material misstatements in its consolidated financial statements[157] - As of December 31, 2023, the company's internal controls over financial reporting were not effective, which may result in delayed filing of required periodic reports[162] - The company is currently working on a remediation plan that includes hiring additional finance department employees and formalizing risk assessment processes[160] Strategic Partnerships and Growth - The company has a robust pipeline supported by a network of developers and channel partners, enhancing its competitive advantage in the solar power industry[19] - The company is leveraging partnerships with The Blackstone Group and CBRE Group, Inc. to access client relationships and increase customer support[206] - The partnership with CBRE, which serves 90% of the Fortune 100, presents significant opportunities for expanding the customer base[211] Market Dynamics - Recent inflationary pressures and supply chain issues have led to increased prices for imported solar modules, impacting market economics[212] - Attachment rates for energy storage systems are trending higher, while acquisition costs are decreasing, indicating potential growth in this area[212]

[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Altus Power achieved significant 2023 revenue and EBITDA growth, expanding its portfolio and customer base, with strong cash for 2024 funding [Full Year 2023 Financial Highlights](index=1&type=section&id=Full%20Year%202023%20Financial%20Highlights) Altus Power reported significant growth in 2023, with a 53% increase in revenue and a 59% rise in Adjusted EBITDA. Despite this operational growth, the company recorded a GAAP net loss of $26.0 million, a reversal from the net income of $52.2 million in 2022. Net cash from operating activities saw a substantial 125% increase Full Year 2023 Key Financial Metrics | Metric | Full Year 2023 | Full Year 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $155.2 million | $101.2 million | 53% | | GAAP Net (Loss) Income | ($26.0 million) | $52.2 million | N/A | | Adjusted EBITDA* | $93.1 million | $58.6 million | 59% | | Net cash provided by operating activities | $79.4 million | $35.3 million | 125% | | Adjusted EBITDA margin* | 60% | 58% | +2 p.p. | [Business Highlights](index=1&type=section&id=Business%20Highlights) In 2023, Altus Power significantly expanded its operational footprint, nearly doubling its portfolio size to 896 MW and growing its enterprise customer base to over 450. The company solidified its position as the largest owner of commercial scale solar assets in the US and ended the year with a strong cash balance of $219 million, which is expected to fund 2024 growth without the need for new equity financing - Portfolio size increased by **91% to 896 MW** during 2023, comprising ~74 MW of new-build assets and ~352 MW of operating assets[2](index=2&type=chunk) - Added approximately **150 enterprise customers**, bringing the total to over 450[2](index=2&type=chunk) - The year-end cash balance of **$219 million** underpins the financing plan for 2024 with no expected equity needs[2](index=2&type=chunk) - The company is approaching a **1 gigawatt portfolio** following the closing of an 84 MW acquisition from Vitol in January 2024[2](index=2&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) Altus Power reported strong operating revenue and Adjusted EBITDA growth for Q4 and full year 2023, despite GAAP net losses [Fourth Quarter 2023 Financial Results](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Results) In Q4 2023, operating revenues grew 28% year-over-year to $34.2 million. However, the company posted a GAAP net loss of $40.0 million, a significant shift from the $67.1 million net income in Q4 2022. This loss was primarily driven by a $17.7 million non-cash loss from the remeasurement of alignment shares, contrasting with a large non-cash gain in the prior-year period. Adjusted EBITDA saw a modest 5% increase to $17.3 million Q4 2023 Financial Performance vs. Q4 2022 | Metric | Q4 2023 | Q4 2022 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $34.2 million | $26.8 million | 28% | | GAAP Net (Loss) Income | ($40.0 million) | $67.1 million | N/A | | Adjusted EBITDA* | $17.3 million | $16.6 million | 5% | - The decrease in GAAP net income was primarily driven by a **$17.7 million non-cash loss** from the remeasurement of alignment shares in Q4 2023, compared to a **$71.5 million non-cash gain** from remeasurement of warrants and alignment shares in Q4 2022[4](index=4&type=chunk) [Full Year 2023 Financial Results](index=1&type=section&id=Full%20Year%202023%20Financial%20Results) For the full year 2023, operating revenues increased 53% to $155.2 million, driven by customer additions and asset growth. The company recorded a GAAP net loss of $26.0 million, compared to a net income of $52.2 million in 2022, a change primarily attributed to a significant non-cash net gain from the remeasurement of warrants and alignment shares in 2022 that did not recur. Adjusted EBITDA grew 59% to $93.1 million Full Year 2023 Financial Performance vs. Full Year 2022 | Metric | Full Year 2023 | Full Year 2022 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $155.2 million | $101.2 million | 53% | | GAAP Net (Loss) Income | ($26.0 million) | $52.2 million | N/A | | Adjusted EBITDA* | $93.1 million | $58.6 million | 59% | [2024 Guidance](index=3&type=section&id=2024%20Guidance) Altus Power projects continued strong growth for 2024, anticipating significant increases in operating revenues and Adjusted EBITDA [Initiating 2024 Guidance](index=3&type=section&id=Initiating%202024%20Guidance) Altus Power has initiated its financial guidance for 2024, projecting continued strong growth. The company expects operating revenues to be between $200 million and $222 million and Adjusted EBITDA to be in the range of $115 million to $135 million. At their midpoints, these forecasts represent year-over-year growth of 36% and 34%, respectively 2024 Financial Guidance | Metric | 2024 Guidance Range | Midpoint Growth vs. 2023 | | :--- | :--- | :--- | | Operating Revenues | $200 - $222 million | 36% | | Adjusted EBITDA* | $115 - $135 million | 34% | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) The 2023 consolidated statements reflect substantial revenue growth, a net loss, significant asset expansion, and strong operating cash flow [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The 2023 consolidated statements of operations show a 53% increase in operating revenues to $155.2 million. However, a significant rise in operating expenses, particularly depreciation and interest expense, coupled with non-cash charges, resulted in a net loss of $26.0 million for the year, compared to a net income of $52.2 million in 2022 Consolidated Statements of Operations (in thousands) | Description | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Operating revenues, net** | **$155,162** | **$101,163** | | Total operating expenses | $138,064 | $83,048 | | Operating income | $17,098 | $18,115 | | Total other expense (income) | $43,754 | ($35,128) | | (Loss) income before income tax | ($26,656) | $53,243 | | **Net (loss) income** | **($25,973)** | **$52,167** | | Net (loss) income per share, diluted | ($0.06) | $0.35 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, Altus Power's total assets grew to $2.09 billion from $1.38 billion in 2022, primarily driven by a substantial increase in property, plant, and equipment. This asset growth was financed largely through an increase in long-term debt, which pushed total liabilities up to $1.57 billion from $913.8 million in the prior year Consolidated Balance Sheet Highlights (in thousands) | Description | As of Dec 31, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $160,817 | $193,016 | | Property, plant and equipment, net | $1,619,047 | $1,005,147 | | **Total assets** | **$2,090,349** | **$1,376,888** | | Current portion of long-term debt | $39,611 | $29,959 | | Long-term debt, net | $1,163,307 | $634,603 | | **Total liabilities** | **$1,565,338** | **$913,829** | | **Total stockholders' equity** | **$447,078** | **$424,101** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the year ended December 31, 2023, net cash from operating activities more than doubled to $79.4 million. The company made significant investments, with net cash used for investing activities totaling $586.8 million, primarily for acquiring renewable energy businesses. These investments were largely funded by net cash from financing activities of $527.0 million, mainly from the issuance of new long-term debt Consolidated Cash Flow Highlights (in thousands) | Description | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$79,357** | **$35,242** | | Net cash used for investing activities | ($586,813) | ($163,212) | | Net cash provided by (used for) financing activities | $526,985 | ($2,953) | | **Net increase (decrease) in cash** | **$19,529** | **($130,923)** | | Cash, cash equivalents, and restricted cash, end of year | $218,927 | $199,398 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and ARR to clarify core operating performance, with detailed reconciliations [Use and Definition of Non-GAAP Measures](index=3&type=section&id=Use%20and%20Definition%20of%20Non-GAAP%20Measures) Altus Power utilizes non-GAAP financial measures like Adjusted EBITDA and Adjusted EBITDA margin to supplement its GAAP results. The company believes these metrics offer a clearer view of its core operating performance by excluding certain non-recurring or non-cash items, such as fair value remeasurements of contingent consideration and alignment shares, acquisition costs, and stock-based compensation. These measures are used by management for internal planning and performance evaluation - Adjusted EBITDA is defined as net income adjusted for interest, taxes, depreciation, amortization, accretion, stock-based compensation, acquisition costs, and other non-recurring items like changes in fair value of warrants and alignment shares[10](index=10&type=chunk)[12](index=12&type=chunk) - The company also refers to Annual Recurring Revenue (ARR), a non-GAAP estimate of the expected annual revenue from its operating asset base, assuming customary conditions. It is not derived from a GAAP measure[13](index=13&type=chunk)[14](index=14&type=chunk) [Reconciliation of Net (Loss) Income to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20(Loss)%20Income%20to%20Adjusted%20EBITDA) The company provides a detailed reconciliation from GAAP Net (Loss) Income to non-GAAP Adjusted EBITDA. For the full year 2023, a net loss of $26.0 million was adjusted for items including interest ($47.5M), D&A ($53.6M), stock-based compensation ($15.0M), and fair value changes, resulting in an Adjusted EBITDA of $93.1 million. This corresponds to an Adjusted EBITDA margin of 60% on operating revenues of $155.2 million Reconciliation of Net (Loss) Income to Adjusted EBITDA (Full Year, in thousands) | Description | 2023 | 2022 | | :--- | :--- | :--- | | **Net (loss) income** | **($25,973)** | **$52,167** | | Income tax (benefit) expense | (683) | 1,076 | | Interest expense, net | 47,486 | 22,162 | | Depreciation, amortization and accretion expense | 53,627 | 29,600 | | Stock-based compensation | 14,984 | 9,404 | | Acquisition and entity formation costs | 4,508 | 3,629 | | Change in fair value of Alignment Shares liability | (5,632) | (61,314) | | Other adjustments | 4,756 | (1,124) | | **Adjusted EBITDA** | **$93,073** | **$58,605** | Adjusted EBITDA Margin Calculation (Full Year, in thousands) | Description | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted EBITDA | $93,073 | $58,605 | | Operating revenues, net | $155,162 | $101,163 | | **Adjusted EBITDA margin** | **60%** | **58%** |

Core Insights - The market anticipates Altus Power, Inc. (AMPS) will report a year-over-year increase in earnings driven by higher revenues when it releases its results for the quarter ended December 2023 [1] - The earnings report is expected on March 14, 2024, and actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [1] - The consensus estimate indicates a quarterly loss of $0.02 per share, reflecting a year-over-year change of +33.3%, with revenues projected at $42.85 million, up 60.1% from the previous year [2] Estimate Revisions - The consensus EPS estimate has been revised 5% lower in the last 30 days, indicating a reassessment by analysts [2] - The Most Accurate Estimate for Altus Power is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -25%, suggesting a bearish outlook from analysts [5] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [4] - Altus Power currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [5][6] Historical Performance - In the last reported quarter, Altus Power was expected to post earnings of $0.04 per share but delivered only $0.03, resulting in a surprise of -25% [7] - The company has not surpassed consensus EPS estimates in any of the last four quarters [7] Conclusion - Altus Power does not appear to be a compelling candidate for an earnings beat based on current estimates and historical performance [8] - Investors should consider other factors beyond earnings surprises when evaluating the stock ahead of its earnings release [8]

Core Viewpoint - The article highlights seven solar stocks that are attractive for investment in February 2024, emphasizing their growth prospects and favorable valuations driven by government policies supporting renewable energy adoption [1]. Group 1: Company Summaries - **SunPower (SPWR)**: Reported GAAP revenue of $432 million and a net loss of $32 million for the quarter, but added 18,800 customers. The company has a backlog of over 18,100 retrofit installations and strong sales of SunVault energy storage systems, particularly in California [2][3]. - **Atlantica Sustainable Infrastructure (AY)**: Maintained stable revenues of $858.6 million and EBITDA of $627.3 million. Cash available for distribution grew by 2.9% year-over-year to $184.2 million. Analysts project a 33.53% increase in stock price [5]. - **Nextracker (NXT)**: Achieved revenue of $710 million, a 38% year-over-year increase, with GAAP net income of $128 million. The company raised its fiscal 2024 guidance for adjusted EBITDA to between $475 million and $500 million, indicating strong growth potential [6][7]. - **Canadian Solar (CSIQ)**: Reported a 39% year-over-year increase in solar module shipments to 8.3 GW, with net revenues of $1.85 billion and a gross margin of 16.7%. Analysts expect a 44.60% rise in stock valuation within the next twelve months [9]. - **Altus Power (AMPS)**: Reported revenues of $45.1 million, a 48% increase year-over-year, with GAAP net income of $6.8 million. The company reaffirmed its adjusted EBITDA guidance of $97-103 million for 2023 [10]. - **Shoals Technologies (SHLS)**: Anticipates net income of $46 million for 2023 and $122 million for 2024, with a significant backlog indicating high demand. The company is considered 55.58% undervalued based on analyst consensus [12]. - **Sunrun (RUN)**: Reported a 20% growth in customer additions, reaching a total of 869,464 customers. The company installed 296.6 MW of solar capacity and expects to benefit from potentially decreasing interest rates, enhancing competitiveness against utility prices [13].

Core Viewpoint - Altus Power, Inc. (AMPS) has seen a 5.6% increase in share price over the past four weeks, closing at $6.42, with analysts projecting a mean price target of $8.94, indicating a potential upside of 39.3% [1] Price Targets - The average price target for AMPS is based on eight short-term estimates, ranging from a low of $7 to a high of $10, with a standard deviation of $1.08, suggesting a moderate agreement among analysts [1] - The lowest estimate indicates a 9% increase from the current price, while the highest suggests a 55.8% upside [1] Analyst Sentiment - Analysts show strong agreement regarding AMPS's ability to report better earnings than previously predicted, which supports the potential for stock upside [2] - A positive trend in earnings estimate revisions has been correlated with near-term stock price movements, reinforcing the optimistic outlook for AMPS [5] Earnings Estimates - Over the last 30 days, the Zacks Consensus Estimate for AMPS's current year earnings has increased by 125%, with no negative revisions reported [5] - AMPS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [5] Price Target Reliability - While consensus price targets are often sought after, they can mislead investors; thus, they should not be the sole basis for investment decisions [2][4] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts about the stock's price movement direction [4]

Core Viewpoint - Legion Partners Asset Management has nominated four candidates to the Board of Directors of The Chefs' Warehouse, Inc. to address the company's chronic underperformance and enhance profitability [1][2][3] Company Performance - The Chefs' Warehouse has shown long-term underperformance in share price compared to its peers and major indices, with a total shareholder return (TSR) of 17% over the past year, which is significantly lower than its core peers at 15% and other distribution peers at 9% [5][6][7] - The company has consistently failed to achieve its target adjusted EBITDA margin of 7%, with actual margins falling short over the years, including a projected 5.63% for 2023 [9][12] Board Composition and Accountability - The current Board is criticized for its lack of relevant experience and independence, with an average director tenure exceeding nine years, contributing to a culture of complacency [3][4] - The Board has not effectively held management accountable for achieving profitability targets, allowing nearly $800 million in capital to be deployed in a poorly conceived acquisition strategy [9][11] Future Potential - Despite past performance issues, there is optimism about the company's potential in specialty food distribution, with a target share price of over $85 in the next five years and an adjusted EBITDA of more than $320 million by fiscal 2028 [4][15] - Achieving a 7% adjusted EBITDA margin is seen as feasible through disciplined capital spending and limiting acquisitions [4][11] Nominees for Board Election - The four nominees proposed by Legion Partners possess extensive experience in operations, finance, and strategic planning, aimed at driving significant improvements in the company's governance and performance [13][14][16][20][22]

Core Viewpoint - Altus Power, Inc. will report its financial results for the full year of 2023 on March 14, 2024, after the market closes, followed by a conference call for investors [1] Company Overview - Altus Power, based in Stamford, Connecticut, is a leading provider of clean electric power, serving commercial, industrial, public sector, and Community Solar customers with comprehensive solutions [3] - The company focuses on originating, developing, owning, and operating locally-sited solar generation, energy storage, and charging infrastructure across the United States [3]