Altus Power(US:AMPS)2024-08-08 20:15Part I - Financial Information Item 1. Financial Statements 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 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 20238225249 - 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 facilities8225251 Condensed Consolidated Statements of Comprehensive Income 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 20239 Condensed Consolidated Balance Sheets 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, net12 - 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 remeasurement12 Condensed Consolidated Statements of Changes in Stockholders' Equity 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 thousand21 - 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 capital21 Condensed Consolidated Statements of Cash Flows 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