SAN JOSE, Calif., June 29, 2017 /PRNewswire/ -- 8point3 Energy Partners LP (NASDAQ:CAFD) today announced financial results for its second fiscal quarter ended May 31, 2017.
- Exceeded Q2 2017 revenue, net income, Adjusted EBITDA and CAFD guidance
- Sponsors' strategic review of Partnership interests continuing
- Declared Q2 2017 distribution of $0.2642 per share, an increase of 3.0 percent over the Q1 2017 distribution
- Forecasts Q3 2017 distribution of $0.2721 per share, an increase of 3.0 percent compared to the Q2 2017 distribution
- Partnership reiterates fiscal year 2017 financial guidance and distribution growth of 12 percent
For the second quarter of fiscal 2017, 8point3 Energy Partners reported revenue of $16.7 million, net income of $7.1 million, Adjusted EBITDA of $28.5 million and cash available for distribution (CAFD) of $18.8 million.
"We were pleased with our performance as we exceeded our key financial metrics for the second quarter in addition to raising our quarterly distribution by 3 percent," said Chuck Boynton, 8point3 Energy Partners' CEO. "Our portfolio, which consisted of interests in 945 megawatts (MW) of U.S. solar generating assets at the end of the second quarter, continues to perform well and is expected to generate annual CAFD of approximately $100 million in 2017."
Additionally, during the quarter, the Board of Directors of the Partnership's general partner waived the negotiating period related to the offering of First Solar's 280-MW California Flats and 40-MW Cuyama Right of First Offer (ROFO) projects. As a result of this waiver, First Solar has the right to offer and sell these projects 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 $0.2642 per share for the second quarter. The second quarter distribution will be paid on July 14, 2017 to shareholders of record as of July 6, 2017.
"Our solid second quarter results reflect the continued stable performance of our asset portfolio," said Bryan Schumaker, 8point3 Energy Partners' chief financial officer. "Given our predictable cash flows, we remain committed to reducing the Partnership's leverage while 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 second quarter.
Guidance
The Partnership's third quarter 2017 guidance is as follows: revenue of $25.0 million to $26.0 million, net income of $21.0 million to $24.0 million, Adjusted EBITDA of $44.0 million to $47.5 million, CAFD of $28.0 million to $30.0 million and a distribution of $0.2721 per share, a forecasted increase of 3.0 percent compared to the Q2 2017 distribution.
The Partnership's fiscal year 2017 guidance remains unchanged: revenue of $63.3 million to $66.7 million, net income of $27.0 million to $32.6 million, Adjusted EBITDA of $106.5 million to $113.1 million and CAFD of $91.5 million to $101.0 million. The Partnership also expects a 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, 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, June 29, 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 February 28, 2017, filed with the Securities and Exchange Commission on April 5, 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 cash available for distribution. 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) |
||||||||
May 31, 2017 |
November 30, 2016 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
10,633 |
$ |
14,261 |
||||
Accounts receivable and short-term financing receivables, net |
8,591 |
5,401 |
||||||
Prepaid and other current assets1 |
9,574 |
15,745 |
||||||
Total current assets |
28,798 |
35,407 |
||||||
Property and equipment, net |
719,372 |
720,132 |
||||||
Long-term financing receivables, net |
78,455 |
80,014 |
||||||
Investments in unconsolidated affiliates |
785,832 |
475,078 |
||||||
Other long-term assets |
23,778 |
24,432 |
||||||
Total assets |
$ |
1,636,235 |
$ |
1,335,063 |
||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and other current liabilities1 |
$ |
9,251 |
$ |
23,771 |
||||
Short-term debt and financing obligations1 |
2,209 |
1,964 |
||||||
Deferred revenue, current portion |
941 |
870 |
||||||
Total current liabilities |
12,401 |
26,605 |
||||||
Long-term debt and financing obligations1 |
716,723 |
384,436 |
||||||
Deferred revenue, net of current portion |
172 |
308 |
||||||
Deferred tax liabilities |
33,579 |
30,733 |
||||||
Asset retirement obligations |
14,319 |
13,448 |
||||||
Other long-term liabilities |
1,692 |
— |
||||||
Total liabilities |
778,886 |
455,530 |
||||||
Redeemable noncontrolling interests |
17,346 |
17,624 |
||||||
Equity: |
||||||||
Class A shares, 28,081,032 and 28,072,680 issued and outstanding as of May 31, 2017 and November 30, 2016, respectively |
249,250 |
249,138 |
||||||
Class B shares, 51,000,000 issued and outstanding as of May 31, 2017 and November 30, 2016 |
— |
— |
||||||
Accumulated earnings |
12,494 |
22,440 |
||||||
Total shareholders' equity attributable to 8point3 Energy Partners LP |
261,744 |
271,578 |
||||||
Noncontrolling interests |
578,259 |
590,331 |
||||||
Total equity |
840,003 |
861,909 |
||||||
Total liabilities and equity |
$ |
1,636,235 |
$ |
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 May 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 $6.3 million and $19.7 million due to Sponsors as of May 31, 2017 and November 30, 2016, respectively, and $0.8 million and $1.0 million due to tax equity investors as of May 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 May 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 |
Six Months Ended |
||||||||||||||
May 31, 2017 |
May 31, 2016 |
May 31, 2017 |
May 31, 2016 |
||||||||||||
Revenues: |
|||||||||||||||
Operating revenues1 |
$ |
16,678 |
$ |
13,517 |
$ |
26,575 |
$ |
20,619 |
|||||||
Total revenues |
16,678 |
13,517 |
26,575 |
20,619 |
|||||||||||
Operating costs and expenses1: |
|||||||||||||||
Cost of operations |
2,110 |
1,759 |
4,332 |
3,025 |
|||||||||||
Selling, general and administrative |
1,942 |
1,656 |
3,844 |
3,292 |
|||||||||||
Depreciation and accretion |
6,892 |
5,388 |
13,655 |
10,014 |
|||||||||||
Acquisition-related transaction costs |
18 |
829 |
31 |
1,662 |
|||||||||||
Total operating costs and expenses |
10,962 |
9,632 |
21,862 |
17,993 |
|||||||||||
Operating income |
5,716 |
3,885 |
4,713 |
2,626 |
|||||||||||
Other expense (income): |
|||||||||||||||
Interest expense |
5,874 |
3,051 |
11,369 |
5,924 |
|||||||||||
Interest income |
(294) |
(328) |
(565) |
(613) |
|||||||||||
Other expense (income) |
37 |
(334) |
(797) |
(260) |
|||||||||||
Total other expense, net |
5,617 |
2,389 |
10,007 |
5,051 |
|||||||||||
Income (loss) before income taxes and equity in earnings of unconsolidated investees |
99 |
1,496 |
(5,294) |
(2,425) |
|||||||||||
Income tax provision |
(2,315) |
(6,681) |
(2,848) |
(10,218) |
|||||||||||
Equity in earnings of unconsolidated investees |
9,359 |
5,024 |
9,965 |
5,429 |
|||||||||||
Net income (loss) |
7,143 |
(161) |
1,823 |
(7,214) |
|||||||||||
Less: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests |
3,757 |
(10,183) |
(2,424) |
(22,544) |
|||||||||||
Net income attributable to 8point3 Energy Partners LP Class A shares |
3,386 |
$ |
10,022 |
4,247 |
$ |
15,330 |
|||||||||
Net income per Class A share: |
|||||||||||||||
Basic |
$ |
0.12 |
$ |
0.50 |
$ |
0.15 |
$ |
0.77 |
|||||||
Diluted |
$ |
0.12 |
$ |
0.50 |
$ |
0.15 |
$ |
0.77 |
|||||||
Distributions per Class A share: |
$ |
0.26 |
$ |
0.22 |
$ |
0.51 |
$ |
0.44 |
|||||||
Weighted average number of Class A shares: |
|||||||||||||||
Basic |
28,077 |
20,011 |
28,075 |
20,009 |
|||||||||||
Diluted |
43,577 |
35,511 |
43,575 |
35,509 |
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 May 31, 2017 and May 31, 2016, and $2.6 million for each of the six months ended May 31, 2017 and May 31, 2016. Related party transactions recorded within "Operating costs and expenses" in the unaudited condensed consolidated statement of operations were $2.2 million and $1.7 million for the three months ended May 31, 2017 and May 31, 2016, respectively, and $4.2 million and $3.1 million for the six months ended May 31, 2017 and May 31, 2016, respectively. |
8point3 Energy Partners LP Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
Six Months Ended |
||||||||
May 31, 2017 |
May 31, 2016 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ |
1,823 |
$ |
(7,214) |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation, amortization and accretion |
13,871 |
10,014 |
||||||
Unrealized gain on interest rate swap |
(633) |
(251) |
||||||
Distributions from unconsolidated investees |
9,965 |
7,718 |
||||||
Equity in earnings of unconsolidated investees |
(9,965) |
(5,429) |
||||||
Deferred income taxes |
2,846 |
10,218 |
||||||
Share-based compensation |
112 |
112 |
||||||
Amortization of debt issuance costs |
487 |
306 |
||||||
Other, net |
(62) |
166 |
||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable and financing receivable, net |
(1,559) |
(2,432) |
||||||
Prepaid and other assets |
7,104 |
(464) |
||||||
Deferred revenue |
(59) |
(68) |
||||||
Accounts payable and other liabilities |
1,050 |
951 |
||||||
Net cash provided by operating activities |
24,980 |
13,627 |
||||||
Cash flows from investing activities: |
||||||||
Cash provided by (used in) purchases of property and equipment, net |
(114) |
1,143 |
||||||
Cash paid for acquisitions |
(304,465) |
(117,974) |
||||||
Distributions from unconsolidated investees |
19,333 |
1,193 |
||||||
Net cash used in investing activities |
(285,246) |
(115,638) |
||||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of bank loans, net of issuance costs |
283,987 |
64,991 |
||||||
Repayment of promissory note to First Solar |
(1,964) |
— |
||||||
Capital contributions from SunPower |
— |
9,973 |
||||||
Cash distribution to Class A shareholders |
(14,193) |
(8,835) |
||||||
Cash distributions to Sponsors as OpCo unit holders |
(25,781) |
— |
||||||
Cash contributions from noncontrolling interests and redeemable noncontrolling interests - tax equity investors |
18,750 |
372 |
||||||
Cash distributions to noncontrolling interests and redeemable noncontrolling interests - tax equity investors |
(4,161) |
(1,276) |
||||||
Net cash provided by financing activities |
256,638 |
65,225 |
||||||
Net decrease in cash and cash equivalents |
(3,628) |
(36,786) |
||||||
Cash and cash equivalents, beginning of period |
14,261 |
56,781 |
||||||
Cash and cash equivalents, end of period |
$ |
10,633 |
$ |
19,995 |
||||
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 |
4,287 |
3,435 |
||||||
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 |
785 |
1,616 |
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 cash available for distribution.
Adjusted EBITDA.
We define Adjusted EBITDA as net income (loss) 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 (loss). 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 (loss) 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 (loss).
Cash Available for Distribution.
We use cash available for distribution, 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 of indebtedness plus cash distributions from unconsolidated affiliates, indemnity payments and working capital loans 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 cash available for distribution 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, cash available for distribution is used by our management team for determining future acquisitions and managing our growth. The U.S. GAAP measure most directly comparable to cash available for distribution is net income (loss).
However, cash available for distribution 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. Cash available for distribution is a non-U.S. GAAP measure and should not be considered an alternative to net income (loss) 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 cash available for distribution are not necessarily comparable to cash available for distribution as calculated by other companies. Investors should not rely on these measures as a substitute for any U.S. GAAP measure, including net income (loss).
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA and cash available for distribution for the three months ended May 31, 2017, February 28, 2017, and May 31, 2016, respectively, and six months ended May 31, 2017 and May 31, 2016, respectively:
8point3 Energy Partners LP |
|||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||
(in thousands) |
May 31, |
February 28, |
May 31, |
May 31, |
May 31, |
||||||||||||||
Net income (loss) |
$ |
7,143 |
$ |
(5,320) |
$ |
(161) |
$ |
1,823 |
$ |
(7,214) |
|||||||||
Add (Less): |
|||||||||||||||||||
Interest expense, net of interest income |
5,580 |
5,224 |
2,715 |
10,804 |
5,303 |
||||||||||||||
Income tax provision |
2,315 |
533 |
6,681 |
2,848 |
10,218 |
||||||||||||||
Depreciation, amortization and accretion |
7,000 |
6,871 |
5,388 |
13,871 |
10,014 |
||||||||||||||
Share-based compensation |
56 |
56 |
56 |
112 |
112 |
||||||||||||||
Acquisition-related transaction costs (1) |
18 |
13 |
829 |
31 |
1,662 |
||||||||||||||
Unrealized gain (loss) on derivatives (2) |
37 |
(670) |
(325) |
(633) |
(251) |
||||||||||||||
Add proportionate share from equity method investments (3) |
|||||||||||||||||||
Interest expense, net of interest income |
169 |
130 |
(53) |
299 |
(95) |
||||||||||||||
Depreciation, amortization and accretion |
6,224 |
6,224 |
2,234 |
12,448 |
5,286 |
||||||||||||||
Adjusted EBITDA |
$ |
28,542 |
$ |
13,061 |
$ |
17,364 |
$ |
41,603 |
$ |
25,035 |
|||||||||
Less: |
|||||||||||||||||||
Equity in earnings of unconsolidated affiliates, |
(15,752) |
(6,960) |
(7,205) |
(22,712) |
(10,620) |
||||||||||||||
Cash interest paid (5) |
(5,666) |
(4,761) |
(3,110) |
(10,427) |
(5,898) |
||||||||||||||
Cash distributions to non-controlling interests |
(2,276) |
(1,885) |
(420) |
(4,161) |
(904) |
||||||||||||||
Short-term note (6) |
— |
(1,964) |
— |
(1,964) |
— |
||||||||||||||
Add: |
|||||||||||||||||||
Cash distributions from unconsolidated affiliates (7) |
11,587 |
17,711 |
2,633 |
29,298 |
9,057 |
||||||||||||||
Indemnity payment from Sponsors (8) |
27 |
65 |
— |
92 |
9,973 |
||||||||||||||
State and local rebates (9) |
— |
— |
— |
— |
299 |
||||||||||||||
Cash proceeds from sales-type residential leases (10) |
695 |
671 |
630 |
1,366 |
1,271 |
||||||||||||||
Test electricity generation (11) |
22 |
10 |
421 |
32 |
421 |
||||||||||||||
Cash proceeds for reimbursable network upgrade costs (12) |
1,630 |
6,123 |
— |
7,753 |
— |
||||||||||||||
Cash available for distribution |
$ |
18,809 |
$ |
22,071 |
$ |
10,313 |
$ |
40,880 |
$ |
28,634 |
(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 a working capital loan from 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 (loss) 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 three and six months ended May 31, 2017, test electricity generation represents the sale of electricity that was generated prior to COD by Macy's Maryland Project. For the three and six months ended May 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 Q3 Guidance Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD) |
||||||||
(in millions) |
Low |
High |
||||||
Net income |
21.0 |
24.0 |
||||||
Add (Less): |
||||||||
Interest expense, net of interest income |
6.3 |
6.3 |
||||||
Income tax provision |
3.0 |
3.5 |
||||||
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 |
$ |
44.0 |
$ |
47.5 |
||||
Less: |
||||||||
Equity in earnings of unconsolidated affiliates, net with (1) |
(25.6) |
(27.1) |
||||||
Cash interest paid |
(6.3) |
(6.3) |
||||||
Cash distributions to non-controlling interests |
(2.6) |
(2.6) |
||||||
Add: |
||||||||
Cash distributions from unconsolidated affiliates |
17.7 |
17.7 |
||||||
Network upgrade refund |
0.1 |
0.1 |
||||||
Cash proceeds from sales-type residential leases |
0.7 |
0.7 |
||||||
Estimated cash available for distribution |
$ |
28.0 |
$ |
30.0 |
(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 Cash Available for Distribution (CAFD) |
||||||||
(in millions) |
Low |
High |
||||||
Net income |
$ |
27.0 |
$ |
32.6 |
||||
Add (Less): |
||||||||
Interest expense, net of interest income |
24.3 |
24.3 |
||||||
Income tax provision |
3.4 |
4.4 |
||||||
Depreciation, amortization and accretion |
26.3 |
26.3 |
||||||
Share-based compensation |
0.2 |
0.2 |
||||||
Add proportionate share from equity method investments (1): |
||||||||
Depreciation, amortization and accretion |
25.3 |
25.3 |
||||||
Adjusted EBITDA |
$ |
106.5 |
$ |
113.1 |
||||
Less: |
||||||||
Equity in earnings of unconsolidated affiliates, net with (1) |
(60.4) |
(63.5) |
||||||
Cash interest paid |
(24.3) |
(24.3) |
||||||
Cash distributions to non-controlling interests |
(9.2) |
(9.2) |
||||||
Add: |
||||||||
Cash distributions from unconsolidated affiliates |
65.1 |
71.1 |
||||||
Network upgrade refund |
13.2 |
13.2 |
||||||
Cash proceeds from sales-type residential leases |
2.6 |
2.6 |
||||||
Repayment of working capital loan |
(2.0) |
(2.0) |
||||||
Estimated cash available for distribution |
$ |
91.5 |
$ |
101.0 |
(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. |
SOURCE 8point3 Energy Partners LP
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