SAN JOSE, Calif., Oct. 4, 2017 /PRNewswire/ -- 8point3 Energy
Partners LP (NASDAQ:CAFD) today announced financial results for its
third fiscal quarter ended August 31,
2017.
- Exceeded Q3 2017 revenue, net income, Adjusted EBITDA and
CAFD guidance
- Sponsors' strategic review of Partnership interests
continuing
- Declared Q3 2017 distribution of $0.2721 per share, an increase of 3.0 percent
over the Q2 2017 distribution
- Forecasts Q4 2017 distribution of $0.2802 per share, an increase of 3.0
percent compared to the Q3 2017 distribution
- Partnership reiterates 2017 distribution growth of 12
percent
For the third quarter of fiscal 2017, 8point3 Energy Partners
reported revenue of $27.7 million,
net income of $28.7 million, Adjusted
EBITDA of $53.5 million and cash
available for distribution (CAFD) of $33.2
million.
"The stable performance of our high-quality solar portfolio
enabled us to exceed our financial goals for the quarter and raise
our quarterly distribution for the ninth consecutive quarter," said
Chuck Boynton, 8point3 Energy
Partners' CEO. "We expect that our current portfolio of interests
in 946 megawatts (MW) of U.S. solar assets will generate annual
CAFD of more than $106 million in
2017.
"Also, our sponsors' strategic review related to their
partnership interests in 8point3 is continuing. As SunPower
announced last quarter, it has joined First Solar in its desire to
sell its ownership stake in 8point3 though, as previously noted,
there can be no assurances that a transaction will be consummated,"
concluded Boynton.
Additionally, during the quarter, the Board of Directors of the
Partnership's general partner waived the negotiating period related
to the offering of SunPower's 100-MW Boulder Solar 1 Right of First
Offer (ROFO) project. As a result of this waiver, SunPower has the
right to offer and sell this project to a third party in accordance
with the terms of the ROFO Agreement.
The Board of Directors of the Partnership's general partner also
declared a cash distribution for its Class A shares of $0.2721 per share for the third quarter. The
third quarter distribution will be paid on October 13, 2017 to shareholders of record as of
October 3, 2017.
"We were pleased with our third quarter results as our portfolio
continued to perform as expected," said Bryan Schumaker, 8point3 Energy Partners' chief
financial officer. "We are well positioned to meet our financial
and operational goals for this year and remain committed to
maintaining our 12 percent targeted distribution growth rate for
2017."
The Partnership did not utilize its $125
million at-the-market (ATM) equity offering program during
the third quarter.
Guidance
The Partnership's fourth quarter 2017
guidance is as follows: revenue of $12.0
million to $15.0 million, net income of $1.5 million to $4.0 million, Adjusted EBITDA of
$22.0 million to $25.0 million, CAFD
of $32.0 million to $35.0 million and
a distribution of $0.2802 per share,
a forecasted increase of 3.0 percent compared to the Q3 2017
distribution.
As a result of its consistent asset performance, the Partnership
is raising its fiscal year 2017 guidance. The Partnership now
expects revenue of $66.5 million to $69.5
million, net income of $32.0 million
to $34.5 million, Adjusted EBITDA of $117.0 million to $120.0 million and CAFD of
$106.0 million to $109.0 million. The
Partnership also reiterates its expected distribution growth rate
of 12 percent for fiscal year 2017.
About 8point3 Energy Partners
8point3 Energy Partners
LP (NASDAQ:CAFD) is a growth-oriented limited partnership formed by
First Solar, Inc. and SunPower Corporation to own, operate and
acquire solar energy generation projects. 8point3 Energy Partners'
primary objective is to generate predictable cash distributions
that grow at a sustainable rate. The Partnership owns interests in
projects in the United States that
generate long-term contracted cash flows and serve utility,
commercial and residential customers. For more information about
8point3 Energy Partners, please visit:
www.8point3energypartners.com.
For 8point3 Energy Partners Investors
This press
release includes various "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management's current expectations and assumptions and involve known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking
statements include, among other things, statements expressing
management's expectations, beliefs, estimates, forecasts,
projections and assumptions. You can identify our forward-looking
statements by words such as "anticipate", "believe", "estimate",
"expect", "forecast", "goals", "objectives", "outlook", "intend",
"plan", "predict", "project", "risks", "schedule", "seek",
"target", "could", "may", "will", "should" or "would" or other
similar expressions that convey the uncertainty of future events or
outcomes. In accordance with "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, these statements
are accompanied by cautionary language identifying important
factors, though not necessarily all such factors, which could cause
future outcomes to differ materially from those set forth in
forward-looking statements. In particular, expressed or implied
statements concerning the sponsors' ownership interest in the
Partnership, expectations of plans, strategies, objectives and
growth and anticipated financial and operational performance of the
Partnership and its subsidiaries, including guidance regarding the
Partnership's revenue, net income, Adjusted EBITDA, cash available
for distribution and distributions, other future actions,
conditions or events such as the projected commercial operation
dates of projects, future operating results or the ability to
generate sales, income or cash flow or to make distributions are
forward-looking statements. Forward-looking statements are not
guarantees of performance. They involve risks, uncertainties and
assumptions. Future actions, conditions or events and future
results of operations may differ materially from those expressed in
these forward-looking statements. Forward-looking statements speak
only as of the date of this press release, October 4, 2017, and we disclaim any obligation
to update such statements for any reason, except as required by
law. All forward-looking statements contained in this press release
are expressly qualified in their entirety by the cautionary
statements contained or referred to in this paragraph. Many of the
factors that will determine these results are beyond our ability to
control or predict. These factors include the risk factors
described under "Risk Factors" in the Partnership's Annual Report
on Form 10-K for the fiscal year ended November 30, 2016, filed with the Securities and
Exchange Commission on January 26,
2017 and the Partnership's Quarterly Report on Form 10-Q for
the quarterly period ended May 31,
2017, filed with the Securities and Exchange Commission on
June 29, 2017. If any of those
risks occur, it could cause our actual results to differ materially
from those contained in any forward-looking statement. Because of
these risks and uncertainties, you should not place undue reliance
on any forward-looking statement.
Non-GAAP Financial Information
This earnings release
includes certain financial measures that are not defined under U.S.
generally accepted accounting principles (GAAP), including Adjusted
EBITDA and CAFD. Such non-GAAP financial measures should be
considered only as supplemental to, and not as superior to,
financial measures prepared in accordance with GAAP. We reconcile
these non-GAAP financial measures to the most directly comparable
financial measure prepared in accordance with GAAP in the tables
that accompany this release. In the introduction to such
reconciliation tables that accompany this release, we disclose the
reasons why we believe our use of the non-GAAP financial measures
in this release provides useful information. Please read "Non-GAAP
Financial Measures" below for further details on our use of
non-GAAP financial measures.
8point3 Energy
Partners LP
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except share data)
|
(Unaudited)
|
|
|
|
August 31,
2017
|
|
November 30,
2016
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,361
|
|
|
$
|
14,261
|
|
Accounts receivable
and short-term financing receivables, net
|
|
10,882
|
|
|
5,401
|
|
Prepaid and other
current assets1
|
|
12,312
|
|
|
15,745
|
|
Total current
assets
|
|
33,555
|
|
|
35,407
|
|
Property and
equipment, net
|
|
719,868
|
|
|
720,132
|
|
Long-term financing
receivables, net
|
|
77,484
|
|
|
80,014
|
|
Investments in
unconsolidated affiliates
|
|
791,985
|
|
|
475,078
|
|
Other long-term
assets
|
|
21,459
|
|
|
24,432
|
|
Total
assets
|
|
$
|
1,644,351
|
|
|
$
|
1,335,063
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other current liabilities1
|
|
$
|
6,565
|
|
|
$
|
23,771
|
|
Short-term debt and
financing obligations1
|
|
2,201
|
|
|
1,964
|
|
Deferred revenue,
current portion
|
|
1,527
|
|
|
870
|
|
Total current
liabilities
|
|
10,293
|
|
|
26,605
|
|
Long-term debt and
financing obligations1
|
|
709,989
|
|
|
384,436
|
|
Deferred revenue, net
of current portion
|
|
128
|
|
|
308
|
|
Deferred tax
liabilities
|
|
38,591
|
|
|
30,733
|
|
Asset retirement
obligations
|
|
14,796
|
|
|
13,448
|
|
Other long-term
liabilities
|
|
1,853
|
|
|
—
|
|
Total
liabilities
|
|
775,650
|
|
|
455,530
|
|
Redeemable
noncontrolling interests
|
|
17,346
|
|
|
17,624
|
|
Equity:
|
|
|
|
|
Class A shares,
28,084,935 and 28,072,680 issued and outstanding as of
August 31, 2017 and November 30, 2016, respectively
|
|
249,306
|
|
|
249,138
|
|
Class B shares,
51,000,000 issued and outstanding as of August 31, 2017 and
November 30, 2016
|
|
—
|
|
|
—
|
|
Accumulated
earnings
|
|
12,550
|
|
|
22,440
|
|
Total shareholders'
equity attributable to 8point3 Energy Partners LP
|
|
261,856
|
|
|
271,578
|
|
Noncontrolling
interests
|
|
589,499
|
|
|
590,331
|
|
Total
equity
|
|
851,355
|
|
|
861,909
|
|
Total liabilities and
equity
|
|
$
|
1,644,351
|
|
|
$
|
1,335,063
|
|
|
|
1
|
The Partnership has
related-party balances for transactions made with the Sponsors and
tax equity investors. Related-party balances recorded within
"Prepaid and other current assets" in the unaudited condensed
consolidated balance sheets were $0.8 million and $0.9 million as
of August 31, 2017 and November 30, 2016, respectively.
Related-party balances recorded within "Accounts payable and other
current liabilities" in the unaudited condensed consolidated
balance sheets were $3.5 million and $19.7 million due to Sponsors
as of August 31, 2017 and November 30, 2016,
respectively, and $0.9 million and $1.0 million due to tax equity
investors as of August 31, 2017 and November 30, 2016,
respectively. Related-party balances recorded within "Short-term
debt and financing obligations" and "Long-term debt and financing
obligations" in the unaudited condensed consolidated balance sheets
were $2.2 million and $47.8 million, respectively, as of
August 31, 2017, and $2.0 million and zero, respectively, as
of November 30, 2016.
|
8point3 Energy
Partners LP
|
Condensed
Consolidated Statements of Operations
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
August 31,
2017
|
|
August 31,
2016
|
|
August 31,
2017
|
|
August 31,
2016
|
Revenues:
|
|
|
|
|
|
|
|
Operating
revenues1
|
$
|
27,744
|
|
|
$
|
26,116
|
|
|
$
|
54,319
|
|
|
$
|
46,735
|
|
Total
revenues
|
27,744
|
|
|
26,116
|
|
|
54,319
|
|
|
46,735
|
|
Operating costs and
expenses1:
|
|
|
|
|
|
|
|
Cost of
operations
|
2,064
|
|
|
1,928
|
|
|
6,396
|
|
|
4,953
|
|
Selling, general and
administrative
|
2,050
|
|
|
1,804
|
|
|
5,894
|
|
|
5,096
|
|
Depreciation and
accretion
|
7,220
|
|
|
6,311
|
|
|
20,875
|
|
|
16,325
|
|
Acquisition-related
transaction costs
|
19
|
|
|
599
|
|
|
50
|
|
|
2,261
|
|
Total operating costs
and expenses
|
11,353
|
|
|
10,642
|
|
|
33,215
|
|
|
28,635
|
|
Operating
income
|
16,391
|
|
|
15,474
|
|
|
21,104
|
|
|
18,100
|
|
Other expense
(income):
|
|
|
|
|
|
|
|
Interest
expense
|
6,060
|
|
|
3,199
|
|
|
17,429
|
|
|
9,123
|
|
Interest
income
|
(304)
|
|
|
(296)
|
|
|
(869)
|
|
|
(909)
|
|
Other expense
(income)
|
283
|
|
|
(291)
|
|
|
(514)
|
|
|
(551)
|
|
Total other expense,
net
|
6,039
|
|
|
2,612
|
|
|
16,046
|
|
|
7,663
|
|
Income before income
taxes and equity in earnings of unconsolidated investees
|
10,352
|
|
|
12,862
|
|
|
5,058
|
|
|
10,437
|
|
Income tax
provision
|
(5,012)
|
|
|
(5,063)
|
|
|
(7,860)
|
|
|
(15,281)
|
|
Equity in earnings of
unconsolidated investees
|
23,322
|
|
|
8,075
|
|
|
33,287
|
|
|
13,504
|
|
Net income
|
28,662
|
|
|
15,874
|
|
|
30,485
|
|
|
8,660
|
|
Less: Net income
(loss) attributable to noncontrolling interests and redeemable
noncontrolling interests
|
21,189
|
|
|
8,281
|
|
|
18,765
|
|
|
(14,263)
|
|
Net income
attributable to 8point3 Energy Partners LP Class A
shares
|
$
|
7,473
|
|
|
$
|
7,593
|
|
|
$
|
11,720
|
|
|
$
|
22,923
|
|
Net income per Class
A share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.27
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
1.15
|
|
Diluted
|
$
|
0.27
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
1.15
|
|
Distributions per
Class A share:
|
$
|
0.26
|
|
|
$
|
0.23
|
|
|
$
|
0.77
|
|
|
$
|
0.67
|
|
Weighted average
number of Class A shares:
|
|
|
|
|
|
|
|
Basic
|
28,081
|
|
|
20,015
|
|
|
28,077
|
|
|
20,011
|
|
Diluted
|
43,581
|
|
|
35,515
|
|
|
43,577
|
|
|
35,511
|
|
|
|
1
|
The Partnership has
related-party activities for transactions made with the Sponsors.
Related party transactions recorded within "Operating revenues" in
the unaudited condensed consolidated statement of operations were
$1.3 million for each of the three months ended August 31,
2017 and August 31, 2016, and $3.9 million for each of the
nine months ended August 31, 2017 and August 31, 2016.
Related party transactions recorded within "Operating costs and
expenses" in the unaudited condensed consolidated statement of
operations were $2.1 million and $1.9 million for the three months
ended August 31, 2017 and August 31, 2016, respectively,
and $6.3 million and $5.0 million for the nine months ended
August 31, 2017 and August 31, 2016,
respectively.
|
8point3 Energy
Partners LP
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
August 31,
2017
|
|
August 31,
2016
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
|
30,485
|
|
|
$
|
8,660
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
21,198
|
|
|
16,325
|
|
Unrealized gain on
interest rate swap
|
|
(349)
|
|
|
(536)
|
|
Distributions from
unconsolidated investees
|
|
32,892
|
|
|
15,130
|
|
Equity in earnings of
unconsolidated investees
|
|
(33,287)
|
|
|
(13,504)
|
|
Deferred income
taxes
|
|
7,858
|
|
|
15,281
|
|
Share-based
compensation
|
|
168
|
|
|
168
|
|
Amortization of debt
issuance costs
|
|
737
|
|
|
442
|
|
Other, net
|
|
1
|
|
|
270
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable
and financing receivable, net
|
|
(2,830)
|
|
|
(4,290)
|
|
Prepaid and other
assets
|
|
6,170
|
|
|
(1,398)
|
|
Deferred
revenue
|
|
482
|
|
|
467
|
|
Accounts payable and
other liabilities
|
|
734
|
|
|
806
|
|
Net cash provided by
operating activities
|
|
64,259
|
|
|
37,821
|
|
Cash flows from
investing activities:
|
|
|
|
|
Cash provided by
(used in) purchases of property and equipment, net
|
|
(314)
|
|
|
1,415
|
|
Cash paid for
acquisitions
|
|
(313,183)
|
|
|
(124,326)
|
|
Distributions from
unconsolidated investees
|
|
13,575
|
|
|
653
|
|
Net cash used in
investing activities
|
|
(299,922)
|
|
|
(122,258)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
issuance of Class A shares, net of issuance costs
|
|
—
|
|
|
(201)
|
|
Proceeds from
issuance of bank loans, net of issuance costs
|
|
283,999
|
|
|
64,991
|
|
Repayment of bank
loans
|
|
(7,000)
|
|
|
—
|
|
Repayment of
promissory note to First Solar
|
|
(1,964)
|
|
|
—
|
|
Capital contributions
from SunPower
|
|
—
|
|
|
9,973
|
|
Cash distribution to
Class A shareholders
|
|
(21,610)
|
|
|
(13,487)
|
|
Cash distributions to
Sponsors as OpCo unit holders
|
|
(39,255)
|
|
|
—
|
|
Cash contributions from
noncontrolling interests and redeemable noncontrolling
interests - tax equity investors
|
|
24,353
|
|
|
372
|
|
Cash distributions to
noncontrolling interests and redeemable noncontrolling interests -
tax equity investors
|
|
(6,760)
|
|
|
(4,102)
|
|
Net cash provided by
financing activities
|
|
231,763
|
|
|
57,546
|
|
Net decrease in cash
and cash equivalents
|
|
(3,900)
|
|
|
(26,891)
|
|
Cash and cash
equivalents, beginning of period
|
|
14,261
|
|
|
56,781
|
|
Cash and cash
equivalents, end of period
|
|
$
|
10,361
|
|
|
$
|
29,890
|
|
Non-cash
transactions:
|
|
|
|
|
Issuance by OpCo of
promissory note to First Solar in connection with the Stateline
Acquisition
|
|
$
|
50,000
|
|
|
$
|
—
|
|
Property and equipment
acquisitions funded by liabilities
|
|
2,618
|
|
|
17,410
|
|
Settlement of related
party payable by capital contribution from tax equity
investor
|
|
—
|
|
|
46,837
|
|
Accrued distributions
to noncontrolling interests and redeemable noncontrolling interests
- tax equity investors
|
|
923
|
|
|
795
|
|
Non-GAAP Financial Measures
Our management uses a variety of financial metrics to analyze
our performance. The key financial metrics we evaluate are Adjusted
EBITDA and CAFD.
Adjusted EBITDA.
We define Adjusted EBITDA as net income plus interest expense,
net of interest income, income tax provision, depreciation,
amortization and accretion, including our proportionate share of
net interest expense, income taxes and depreciation, amortization
and accretion from our unconsolidated affiliates that are accounted
for under the equity method, and share-based compensation and
transaction costs incurred for our acquisitions of projects; and
excluding the effect of certain other non-cash or non-recurring
items that we do not consider to be indicative of our ongoing
operating performance such as, but not limited to, mark to market
adjustments to the fair value of derivatives related to our
interest rate hedges. Adjusted EBITDA is a non-U.S. GAAP financial
measure. This measurement is not recognized in accordance with U.S.
GAAP and should not be viewed as an alternative to U.S. GAAP
measures of performance. The U.S. GAAP measure most directly
comparable to Adjusted EBITDA is net income. The presentation of
Adjusted EBITDA should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
We believe Adjusted EBITDA is useful to investors in evaluating
our operating performance because securities analysts and other
interested parties use such calculations as a measure of financial
performance and borrowers' ability to service debt. In addition,
Adjusted EBITDA is used by our management for internal planning
purposes including certain aspects of our consolidated operating
budget and capital expenditures. It is also used by investors to
assess the ability of our assets to generate sufficient cash flows
to make distributions to our Class A shareholders.
However, Adjusted EBITDA has limitations as an analytical tool
because it does not reflect our cash expenditures or future
requirements for capital expenditures or contractual commitments,
does not reflect changes in, or cash requirements for, working
capital, does not reflect significant interest expense or the cash
requirements necessary to service interest or principal payments on
our outstanding debt or cash distributions on tax equity, does not
reflect payments made or future requirements for income taxes, and
excludes the effect of certain other cash flow items, all of which
could have a material effect on our financial condition and results
of operations. Adjusted EBITDA is a non-U.S. GAAP measure and
should not be considered an alternative to net income or any other
performance measure determined in accordance with U.S. GAAP, nor is
it indicative of funds available to fund our cash needs. In
addition, our calculations of Adjusted EBITDA are not necessarily
comparable to EBITDA as calculated by other companies. Investors
should not rely on these measures as a substitute for any U.S. GAAP
measure, including net income.
Cash Available for Distribution.
We use CAFD, which we define as Adjusted EBITDA less equity in
earnings of unconsolidated affiliates, cash interest paid, cash
income taxes paid, maintenance capital expenditures, cash
distributions to noncontrolling interests and principal
amortization payments on any project-level indebtedness
plus cash distributions from unconsolidated affiliates, indemnity
payments and promissory notes from Sponsors, test
electricity generation, cash proceeds from sales-type residential
leases, state and local rebates and cash proceeds for reimbursable
network upgrade costs. Our cash flow is generated from
distributions we receive from OpCo each quarter. OpCo's cash flow
is generated primarily from distributions from the Project
Entities. As a result, our ability to make distributions to our
Class A shareholders depends primarily on the ability of the
Project Entities to make cash distributions to OpCo and the ability
of OpCo to make cash distributions to its unitholders.
We believe CAFD is useful to investors in evaluating our
operating performance because securities analysts and other
interested parties use such calculations as a measure of our
ability to make our distributions. In addition, CAFD is used by our
management team for determining future acquisitions and managing
our growth. The U.S. GAAP measure most directly comparable to CAFD
is net income.
However, CAFD has limitations as an analytical tool because it
does not capture the level of capital expenditures necessary to
maintain the operating performance of our projects, does not
include changes in operating assets and liabilities and excludes
the effect of certain other cash flow items, all of which could
have a material effect on our financial condition and results from
operations. CAFD is a non-U.S. GAAP measure and should not be
considered an alternative to net income or any other performance
measure determined in accordance with U.S. GAAP, nor is it
indicative of funds available to fund our cash needs. In addition,
our calculations of CAFD are not necessarily comparable
to CAFD as calculated by other companies. Investors should not
rely on these measures as a substitute for any U.S. GAAP measure,
including net income.
The following table presents a reconciliation of net income to
Adjusted EBITDA and CAFD for the three months ended
August 31, 2017, May 31, 2017 and August 31, 2016,
respectively, and nine months ended August 31, 2017 and
August 31, 2016, respectively:
8point3 Energy
Partners LP
|
Reconciliation of
Net Income to Adjusted EBITDA and CAFD
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(in
thousands)
|
August
31,
2017
|
|
May
31,
2017
|
|
August
31,
2016
|
|
August
31,
2017
|
|
August
31,
2016
|
Net income
|
$
|
28,662
|
|
|
$
|
7,143
|
|
|
$
|
15,874
|
|
|
$
|
30,485
|
|
|
$
|
8,660
|
|
Add
(Less):
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
5,756
|
|
|
5,580
|
|
|
2,903
|
|
|
16,560
|
|
|
8,206
|
|
Income tax
provision
|
5,012
|
|
|
2,315
|
|
|
5,063
|
|
|
7,860
|
|
|
15,281
|
|
Depreciation,
amortization and accretion
|
7,327
|
|
|
7,000
|
|
|
6,311
|
|
|
21,198
|
|
|
16,325
|
|
Share-based
compensation
|
56
|
|
|
56
|
|
|
56
|
|
|
168
|
|
|
168
|
|
Acquisition-related
transaction costs (1)
|
19
|
|
|
18
|
|
|
599
|
|
|
50
|
|
|
2,261
|
|
Unrealized gain
(loss) on derivatives (2)
|
284
|
|
|
37
|
|
|
(285)
|
|
|
(349)
|
|
|
(536)
|
|
Add proportionate
share from equity method investments (3)
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
141
|
|
|
169
|
|
|
(54)
|
|
|
440
|
|
|
(149)
|
|
Depreciation,
amortization and accretion
|
6,224
|
|
|
6,224
|
|
|
2,397
|
|
|
18,672
|
|
|
7,683
|
|
Adjusted
EBITDA
|
$
|
53,481
|
|
|
$
|
28,542
|
|
|
$
|
32,864
|
|
|
$
|
95,084
|
|
|
$
|
57,899
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (3) above (4)
|
(29,687)
|
|
|
(15,752)
|
|
|
(10,418)
|
|
|
(52,399)
|
|
|
(21,038)
|
|
Cash interest paid
(5)
|
(5,930)
|
|
|
(5,666)
|
|
|
(3,278)
|
|
|
(16,357)
|
|
|
(9,176)
|
|
Cash distributions to
non-controlling interests
|
(2,599)
|
|
|
(2,276)
|
|
|
(2,826)
|
|
|
(6,760)
|
|
|
(3,730)
|
|
Maintenance capital
expenditures
|
(177)
|
|
|
—
|
|
|
—
|
|
|
(177)
|
|
|
—
|
|
Short-term note
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,964)
|
|
|
—
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Cash distributions
from unconsolidated affiliates (7)
|
17,169
|
|
|
11,587
|
|
|
7,018
|
|
|
46,467
|
|
|
16,075
|
|
Indemnity payment
from Sponsors (8)
|
41
|
|
|
27
|
|
|
64
|
|
|
133
|
|
|
10,037
|
|
State and local
rebates (9)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
299
|
|
Cash proceeds from
sales-type residential leases (10)
|
746
|
|
|
695
|
|
|
630
|
|
|
2,112
|
|
|
1,901
|
|
Test electricity
generation (11)
|
1
|
|
|
22
|
|
|
—
|
|
|
33
|
|
|
421
|
|
Cash proceeds for
reimbursable network upgrade costs (12)
|
125
|
|
|
1,630
|
|
|
—
|
|
|
7,878
|
|
|
—
|
|
CAFD
|
$
|
33,170
|
|
|
$
|
18,809
|
|
|
$
|
24,054
|
|
|
$
|
74,050
|
|
|
$
|
52,688
|
|
|
|
(1)
|
Represents
acquisition-related financial advisory, legal and accounting fees
associated with ROFO Project interests purchased and expected to be
purchased by us in the future.
|
(2)
|
Represents the
changes in fair value of interest rate swaps that were not
designated as cash flow hedges.
|
(3)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
(4)
|
Equity
in earnings of unconsolidated affiliates represents the earnings
from the Solar Gen 2 Project, the North Star Project, the Lost
Hills Blackwell Project, the Henrietta Project, and the Stateline
Project and is included on our unaudited condensed consolidated
statements of operations.
|
(5)
|
Represents cash
interest payments related to OpCo's senior secured credit facility
and the Stateline Promissory Note.
|
(6)
|
Represents repayment
of promissory note to First Solar.
|
(7)
|
Cash distributions
from unconsolidated affiliates represent the cash received by OpCo
with respect to its 49% interest in the Solar Gen 2 Project, the
North Star Project, the Lost Hills Blackwell Project, the Henrietta
Project, and its 34% interest in the Stateline Project.
|
(8)
|
Represents indemnity
payments from the Sponsors owed to OpCo in accordance with the
Omnibus Agreement.
|
(9)
|
State and local
rebates represent cash received from state or local governments for
owning certain solar power systems. The receipt of state and local
rebates is accounted for as a reduction in the asset carrying value
rather than operating revenue.
|
(10)
|
Cash proceeds from
sales-type residential leases, net, represent gross rental cash
receipts for sales-type leases, less sales-type revenue and lease
interest income that is already reflected in net income during the
period. The corresponding revenue for such leases was recognized in
the period in which such lease was placed in service, rather than
in the period in which the rental payment was received, due to the
characterization of these leases
under U.S. GAAP.
|
(11)
|
For the three
and nine months ended August 31, 2017, test electricity
generation represents the sale of electricity that was generated
prior to COD by the Macy's Maryland Project. For the nine months
ended August 31, 2016, test electricity generation represents
the sale of electricity that was generated prior to COD by the
Kingbird Project. Solar systems may begin generating electricity
prior to COD as a result of the installation and interconnection of
individual solar modules, which occurs over time during the
construction and commission period. The sale of test electricity
generation is accounted for as a reduction in the asset carrying
value rather than operating revenue prior to COD, even though it
generates cash for the related Project Entity.
|
(12)
|
Cash proceeds from a
utility company related to reimbursable network upgrade costs
associated with the Quinto Project and the Kingbird
Project.
|
8point3 Energy
Partners LP
|
FY 2017 Q4
Guidance
|
Reconciliation of
Net Income to Adjusted EBITDA and CAFD
|
|
(in
millions)
|
|
Low
|
|
High
|
Net income
|
|
$
|
1.5
|
|
|
$
|
4.0
|
|
Add:
|
|
|
|
|
Interest expense, net
of interest income
|
|
6.5
|
|
|
6.5
|
|
Income tax
provision
|
|
0.3
|
|
|
0.8
|
|
Depreciation,
amortization and accretion
|
|
7.3
|
|
|
7.3
|
|
Share-based
compensation
|
|
0.1
|
|
|
0.1
|
|
Add proportionate
share from equity method investments (1):
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
6.3
|
|
|
6.3
|
|
Adjusted
EBITDA
|
|
$
|
22.0
|
|
|
$
|
25.0
|
|
Less:
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (1)
|
|
(13.5)
|
|
|
(14.0)
|
|
Cash interest
paid
|
|
(6.5)
|
|
|
(6.5)
|
|
Cash distributions to
non-controlling interests
|
|
(2.4)
|
|
|
(2.4)
|
|
Add:
|
|
|
|
|
Cash distributions
from unconsolidated affiliates
|
|
30.5
|
|
|
30.5
|
|
Cash proceeds for
reimbursable network upgrade costs
|
|
1.0
|
|
|
1.5
|
|
Cash proceeds from
sales-type residential leases
|
|
0.9
|
|
|
0.9
|
|
CAFD
|
|
$
|
32.0
|
|
|
$
|
35.0
|
|
|
|
(1)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
8point3 Energy
Partners LP
|
FY 2017
Guidance
|
Reconciliation of
Net Income to Adjusted EBITDA and CAFD
|
|
(in
millions)
|
|
Low
|
|
High
|
Net income
|
|
$
|
32.0
|
|
|
$
|
34.5
|
|
Add:
|
|
|
|
|
Interest expense, net
of interest income
|
|
23.1
|
|
|
23.1
|
|
Income tax
provision
|
|
8.1
|
|
|
8.6
|
|
Depreciation,
amortization and accretion
|
|
28.5
|
|
|
28.5
|
|
Share-based
compensation
|
|
0.2
|
|
|
0.2
|
|
Add proportionate
share from equity method investments (1):
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
25.1
|
|
|
25.1
|
|
Adjusted
EBITDA
|
|
$
|
117.0
|
|
|
$
|
120.0
|
|
Less:
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates, net with (1)
|
|
(65.9)
|
|
|
(66.4)
|
|
Cash interest
paid
|
|
(22.9)
|
|
|
(22.9)
|
|
Cash distributions to
non-controlling interests
|
|
(9.2)
|
|
|
(9.2)
|
|
Short-term
note
|
|
(2.0)
|
|
|
(2.0)
|
|
Add:
|
|
|
|
|
Cash distributions
from unconsolidated affiliates
|
|
77.0
|
|
|
77.0
|
|
Cash proceeds for
reimbursable network upgrade costs
|
|
8.9
|
|
|
9.4
|
|
Cash proceeds from
sales-type residential leases
|
|
3.1
|
|
|
3.1
|
|
CAFD
|
|
$
|
106.0
|
|
|
$
|
109.0
|
|
|
|
(1)
|
Represents our
proportionate share of net interest expense, depreciation,
amortization and accretion from our unconsolidated affiliates that
are accounted for under the equity method.
|
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SOURCE 8point3 Energy Partners LP