Altus Power(US:AMPS)2024-05-09 20:14Solar Energy Portfolio - As of March 31, 2024, Altus Power has installed a total of 981 megawatts (MW) of solar PV, representing a 45% increase from 678 MW as of March 31, 2023[188]. - The company generated 210,000 megawatt hours (MWh) in the three months ended March 31, 2024, a 53% increase from 137,000 MWh in the same period of the previous year[192]. - Approximately 54% of the current installed portfolio consists of variable rate contracts, while fixed rate contracts account for 28% and fixed rate with escalator contracts for 18%[180]. - The company has long-term power purchase agreements (PPAs) with over 450 enterprise entities and contracts with over 24,000 residential customers[177]. - Altus Power's pipeline includes 14 MW of assets in construction and pre-construction in Maryland, with additional potential new build assets in Illinois[185]. - The partnership with CBRE provides access to a significant customer base, including 90% of the Fortune 100 companies[182]. - The company operates in 25 states, providing clean electricity equivalent to the consumption of over 100,000 homes, displacing over 550,000 tons of CO2 emissions annually[177]. - The average remaining life of the company's current contracts is approximately 15 years[180]. Financial Performance - Net income for the three months ended March 31, 2024, was $4,055,000, compared to $3,845,000 for the same period in 2023, representing an increase of approximately 5.5%[198]. - Adjusted EBITDA for the three months ended March 31, 2024, was $19,717,000, up from $16,040,000 in the prior year, reflecting a growth of about 22.3%[199]. - Operating revenues for the three months ended March 31, 2024, reached $40,659,000, compared to $29,378,000 in the same period of 2023, indicating an increase of approximately 38.3%[199]. - The Adjusted EBITDA margin decreased to 48% in Q1 2024 from 55% in Q1 2023[199]. - Net income attributable to Altus Power, Inc. was $7.5 million, a 33.7% increase compared to $5.6 million in the prior year[221]. - Total operating expenses increased by $13.1 million, or 45.1%, to $42.3 million for the three months ended March 31, 2024[221]. Operational Costs - The company expects its cost of operations to grow alongside business growth, but as a percentage of revenue, these costs are anticipated to decrease over time[208]. - General and administrative expenses are expected to increase as the company grows but are projected to decrease as a percentage of revenue over time[209]. - Cost of operations rose by $4.9 million, or 82.7%, to $10.9 million during the same period, primarily due to an increased number of operating solar energy facilities[222]. - General and administrative expenses increased by $2.7 million, or 36.1%, to $10.0 million, mainly due to higher personnel costs from increased headcount[223]. - Depreciation, amortization, and accretion expenses grew by $4.8 million, or 41.8%, to $16.1 million, attributed to the expanded solar energy facilities[226]. - Stock-based compensation expenses increased by $1.4 million, or 49.9%, to $4.3 million, primarily due to restricted stock units granted under the Omnibus Incentive Plan[230]. Debt and Financing - The outstanding principal balance of the APAF Term Loan was $471.5 million as of March 31, 2024, down from $474.6 million as of December 31, 2023[248]. - The outstanding principal balance of the APAF II Term Loan was $111.8 million as of March 31, 2024, compared to $112.8 million as of December 31, 2023[250]. - The APAF III Term Loan has a fixed interest rate of 6.03% after amendments made on December 20, 2023, with a maturity date of October 31, 2047[255]. - The APAF IV Term Loan, which matures on March 26, 2049, has an outstanding principal balance of $101.0 million as of March 31, 2024, with a fixed interest rate of 6.45% per annum[258][259]. - The Company borrowed $100.0 million under the APAGH Term Loan on December 27, 2023, to fund future growth needs, with an outstanding principal balance of $100.0 million as of March 31, 2024[260][261]. - As of March 31, 2024, the APAG Revolver had $65.0 million outstanding, with a total committed capacity of $200.0 million[263]. - A significant portion of the company's outstanding debt has a fixed interest rate, but there is modest risk from floating-rate borrowings based on LIBOR plus a specified margin[283]. - The company manages interest rate exposure on floating-rate debt through derivative instruments, but does not engage in trading or speculative derivatives[284]. Cash Flow and Liquidity - As of March 31, 2024, the company had total cash and restricted cash of $203.5 million[240]. - The company expects to have sufficient cash and cash flows from operations to meet working capital and debt service obligations for at least the next 12 months[242]. - During the three months ended March 31, 2024, cash provided by operating activities was $4.5 million, a decrease from $14.2 million in the same period of 2023[272]. - Net cash used in investing activities for the three months ended March 31, 2024, was $141.9 million, compared to $319.4 million in the same period of 2023[273]. - Net cash provided by financing activities was $122.0 million for the three months ended March 31, 2024, down from $190.0 million in the same period of 2023[274][276]. Tax and Other Expenses - The company recorded an income tax expense of $4.9 million for the three months ended March 31, 2024, resulting in an effective tax rate of 54.7%, compared to $0.9 million and an 18.8% rate for the same period in 2023[235]. - The change in fair value of Alignment Shares liability resulted in a loss of $26.1 million, compared to a loss of $17.0 million in the prior year, reflecting a 53.2% increase[231]. - Other income was $0.7 million for the three months ended March 31, 2024, compared to an expense of $0.1 million for the same period in 2023, primarily due to interest income[232]. - Interest expense increased by $3.7 million, or 30.1%, to $16.2 million for the three months ended March 31, 2024, compared to $12.4 million in the same period in 2023, mainly due to increased outstanding debt[233]. - Net loss attributable to redeemable noncontrolling interests increased by $1.7 million, or 94.9%, to $3.5 million for the three months ended March 31, 2024, compared to the same period in 2023[238].