Altus power, inc. announces second quarter 2022 financial results
Stamford, conn.--(business wire)--altus power, inc. (nyse: amps) (“altus power” or the “company”), a premier commercial-scale clean electrification company, today announced its financial results for the second quarter of 2022. “during second quarter we entered into a large number of commitments to supply clean energy with new customers stemming from our early collaboration with cbre and continued collaboration with blackstone and our channel partners," said lars norell, co-ceo of altus power. "converting on these opportunities is a crucial step in building our portfolio of long-term contracted assets we're focused on at altus power." "altus power's execution on this growing scale of customer engagement brings into focus our vision for a national construction platform," added gregg felton, co-ceo of altus power. "during the first six months of 2022 we've added significant talent to our team to help convert our pipeline into altus power operating projects.” second quarter financial results operating revenues during the second quarter of 2022 totaled $24.8 million, compared to $17.6 million during the same period of 2021, an increase of 41%. the increase reflects the growth of megawatts installed over the past twelve months. second quarter 2022 gaap net income totaled $21.6 million, compared to net loss of $0.4 million for the same period last year. the increase in net income in the quarter was driven by the $21.4 million non-cash gain from remeasurement of both warrants and alignment shares. this benefit from remeasurement is non-cash and is driven by a lower altus power common share price between march 31, 2022, and june 30, 2022. both the warrants and alignment shares are revalued quarterly according to our share price at the end of each quarter. adjusted ebitda* during the second quarter of 2022 was $13.9 million, compared to $10.2 million for the second quarter of 2021, a 37% increase. the quarter over quarter growth in adjusted ebitda* is primarily the result of increased revenue from additional solar energy facilities, partially offset by an increase in our general and administrative expenses. adjusted ebitda margin* during the second quarter of 2022 was 56%. balance sheet and liquidity altus power ended the second quarter of 2022 with $295.1 million in unrestricted cash and cash equivalents, and $538.3 million of total debt. the company expects to fund its operations using available cash, additional borrowings under debt facilities and third-party tax equity financing. 2022 guidance altus power reaffirms its full year 2022 adjusted ebitda* guidance range of $57-63 million, as well as guidance for 2022 adjusted ebitda margin* in the mid-50% range. management focuses on adjusted ebitda and adjusted ebitda margin as key measures of profitable growth and approximation of cash flow generation. conference call information the altus power management team will host a conference call to discuss its first quarter 2022 financial results on monday, august 15, 2022, at 8:30 a.m. eastern time. the call can be accessed via a live webcast accessible on the events & presentations page in the investor relations section of altus power’s website at www.altuspower.com. an archive of the webcast will be available after the call on the investor relations section of altus power’s website as well. about altus power, inc. altus power, based in stamford, connecticut, is a premier commercial-scale clean electrification company, serving commercial, industrial, public sector and community solar customers with an end-to-end solution. altus power originates, develops, owns and operates locally sited solar generation, energy storage, and ev charging infrastructure across 18 states from vermont to hawaii. visit altuspower.com to learn more. use of non-gaap financial information *denotes non-gaap financial measure. we present our operating results in accordance with accounting principles generally accepted in the u.s. (“gaap”). we believe certain financial measures, such as adjusted ebitda and adjusted ebitda margin provide users of our financial statements with supplemental information that may be useful in evaluating our business. the presentation of non-gaap financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with gaap. we define adjusted ebitda as net income (loss) plus net interest expense, depreciation, amortization and accretion expense, income tax expense, acquisition and entity formation costs, non-cash compensation expense, and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, gain on fair value remeasurement of contingent consideration, gain on disposal of property, plant and equipment, change in fair value of redeemable warrant liability, change in fair value of alignment shares, loss on extinguishment of debt, and other miscellaneous items of other income and expenses. we define adjusted ebitda margin as adjusted ebitda divided by operating revenues. adjusted ebitda and adjusted ebitda margin are non-gaap financial measures that we use to measure our performance. we believe that investors and analysts also use adjusted ebitda in evaluating our operating performance. this measurement is not recognized in accordance with gaap and should not be viewed as an alternative to gaap measures of performance. the gaap measure most directly comparable to adjusted ebitda is net income and to adjusted ebitda margin is net income over operating revenues. the presentation of adjusted ebitda and adjusted ebitda margin should not be construed to suggest that our future results will be unaffected by non-cash or non-recurring items. in addition, our calculation of adjusted ebitda and adjusted ebitda margin are not necessarily comparable to adjusted ebitda as calculated by other companies and investors and analysts should read carefully the components of our calculations of these non-gaap financial measures. we believe adjusted ebitda is useful to management, investors and analysts in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis. these adjustments are intended to exclude items that are not indicative of the ongoing operating performance of the business. adjusted ebitda is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. adjusted ebitda should not be considered an alternative to but viewed in conjunction with gaap results, as we believe it provides a more complete understanding of ongoing business performance and trends than gaap measures alone. adjusted ebitda has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under gaap. altus power does not provide gaap financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty and without unreasonable effort, items such as acquisition and entity formation costs, gain on fair value remeasurement of contingent consideration, change in fair value of redeemable warrant liability, change in fair value of alignment shares. these items are uncertain, depend on various factors, and could be material to altus power’s results computed in accordance with gaap. forward-looking statements this press release contains forward-looking statements. forward-looking statements may be identified by the use of words such as "believes," "expects," "intends," "aims", "may," “could,” "will," "should," "plans," “projects,” “forecasts,” “seeks,” “anticipates,” “goal,” “objective,” “target,” “estimate,” “future,” “outlook,” “vision,” or variations of such words or similar terminology that predict or indicate future events or trends or that are not statements of historical matters. these statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to altus power’s future prospects, developments and business strategies. these statements are based on altus power’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events. such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside altus power’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. these risks, uncertainties, assumptions and other important factors include, but are not limited to: (1) the ability of altus power to maintain its listing on the new york stock exchange; (2) the ability to recognize the anticipated benefits of the recently completed business combination and related transactions, which may be affected by, among other things, competition, the ability of altus power to grow and manage growth profitably, maintain relationships with customers, business partners, suppliers and agents and retain its management and key employees; (3) changes in applicable laws or regulations; (4) the possibility that altus power may be adversely affected by other economic, business, regulatory and/or competitive factors; and (5) the impact of covid-19, inflationary pressures, and supply chain issues on altus power’s business. additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found under the heading “risk factors” in altus power’s form 10-k filed with the securities and exchange commission on march 24th, 2022, as well as the other information we file with the securities and exchange commission. new risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. you are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made and the information and assumptions underlying such statement as we know it and on the date such statement was made, and altus power undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. this press release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in altus power and is not intended to form the basis of an investment decision in altus power. all subsequent written and oral forward-looking statements concerning altus power or other matters and attributable to altus power or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. altus power, inc. condensed consolidated statements of operations (unaudited) (in thousands, except share and per share data) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 operating revenues, net $ 24,762 $ 17,613 $ 43,961 $ 30,084 operating expenses cost of operations (exclusive of depreciation and amortization shown separately below) 4,290 3,236 8,354 6,156 general and administrative 6,558 4,220 12,942 7,443 depreciation, amortization and accretion expense 6,863 4,470 13,685 8,858 acquisition and entity formation costs 52 85 346 232 gain on fair value remeasurement of contingent consideration, net (1,140 ) (775 ) (971 ) (2,050 ) stock-based compensation 2,657 37 3,962 77 total operating expenses $ 19,280 $ 11,273 $ 38,318 $ 20,716 operating income 5,482 6,340 5,643 9,368 other (income) expense change in fair value of redeemable warrant liability (4,659 ) — (23,117 ) — change in fair value of alignment shares liability (16,705 ) — (63,051 ) — other income, net (608 ) (138 ) (593 ) (249 ) interest expense, net 5,173 4,826 10,111 8,739 total other (income) expense $ (16,799 ) $ 4,688 $ (76,650 ) $ 8,490 income before income tax expense $ 22,281 $ 1,652 $ 82,293 $ 878 income tax expense (707 ) (2,092 ) (584 ) (1,055 ) net income (loss) $ 21,574 $ (440 ) $ 81,709 $ (177 ) net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests (2,541 ) 749 (2,825 ) 50 net income (loss) attributable to altus power, inc. $ 24,115 $ (1,189 ) $ 84,534 $ (227 ) net income (loss) per share attributable to common stockholders basic $ 0.16 $ (0.01 ) $ 0.55 $ — diluted $ 0.16 $ (0.01 ) $ 0.55 $ — weighted average shares used to compute net income (loss) per share attributable to common stockholders basic 153,310,068 88,741,089 152,988,078 88,741,089 diluted 153,954,843 88,741,089 153,771,992 88,741,089 altus power, inc. condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) as of june 30, 2022 as of december 31, 2021 assets current assets: cash and cash equivalents $ 295,079 $ 325,983 current portion of restricted cash 2,459 2,544 accounts receivable, net 13,158 9,218 other current assets 5,748 6,659 total current assets 316,444 344,404 restricted cash, noncurrent portion 1,794 1,794 property, plant and equipment, net 764,884 745,711 intangible assets, net 19,383 16,702 other assets 3,547 4,638 total assets $ 1,106,052 $ 1,113,249 liabilities, redeemable noncontrolling interests, and stockholders' equity current liabilities: accounts payable $ 2,869 $ 3,591 interest payable 4,383 4,494 current portion of long-term debt 15,726 21,143 other current liabilities 4,597 3,663 total current liabilities 27,575 32,891 redeemable warrant liability 19,476 49,933 alignment shares liability 64,408 127,474 long-term debt, net of unamortized debt issuance costs and current portion 522,604 524,837 intangible liabilities, net 12,844 13,758 asset retirement obligations 7,689 7,628 deferred tax liabilities, net 10,153 9,603 other long-term liabilities 6,480 5,587 total liabilities $ 671,229 $ 771,711 commitments and contingent liabilities redeemable noncontrolling interests 16,103 15,527 stockholders' equity common stock $0.0001 par value; 988,591,250 shares authorized as of june 30, 2022, and december 31, 2021; 154,718,268 and 153,648,830 shares issued and outstanding as of june 30, 2022, and december 31, 2021, respectively 15 15 preferred stock $0.0001 par value; 10,000,000 shares authorized, zero shares issued and outstanding as of june 30, 2022, and december 31, 2021 — — additional paid-in capital 416,832 406,259 accumulated deficit (16,822 ) (101,356 ) total stockholders' equity $ 400,025 $ 304,918 noncontrolling interests 18,695 21,093 total equity $ 418,720 $ 326,011 total liabilities, redeemable noncontrolling interests, and stockholders' equity $ 1,106,052 $ 1,113,249 altus power, inc. condensed consolidated statements of cash flows (unaudited) (in thousands) six months ended june 30, 2022 2021 cash flows from operating activities net income (loss) $ 81,709 $ (177 ) adjustments to reconcile net income (loss) to net cash from operating activities: depreciation, amortization and accretion 13,685 8,858 unrealized gain on interest rate swaps (1,777 ) (292 ) deferred tax (benefit) expense 550 1,069 amortization of debt discount and financing costs 1,428 1,443 change in fair value of redeemable warrant liability (23,117 ) — change in fair value of alignment shares liability (63,051 ) — remeasurement of contingent consideration (971 ) (2,050 ) stock-based compensation 3,962 77 other (189 ) (194 ) changes in assets and liabilities, excluding the effect of acquisitions accounts receivable (3,940 ) (3,836 ) other assets 2,712 (4 ) accounts payable (722 ) 4,062 interest payable (78 ) 776 other liabilities 1,668 (247 ) net cash provided by operating activities 11,869 9,485 cash flows used for investing activities capital expenditures (23,338 ) (6,277 ) payments to acquire businesses, net of cash and restricted cash acquired — (2,126 ) payments to acquire renewable energy facilities from third parties, net of cash and restricted cash acquired (11,572 ) (4,968 ) net cash used for investing activities (34,910 ) (13,371 ) cash flows used for financing activities proceeds from issuance of long-term debt — 26,391 repayments of long-term debt (8,120 ) (16,680 ) payment of debt issuance costs (42 ) (596 ) payment of dividends and commitment fees on series a preferred stock — (8,380 ) payment of deferred transaction costs — (2,140 ) payment of contingent consideration (45 ) (102 ) payment of equity issuance costs (744 ) — contributions from noncontrolling interests 2,151 439 distributions to noncontrolling interests (1,148 ) (1,102 ) net cash used for financing activities (7,948 ) (2,170 ) net decrease in cash, cash equivalents, and restricted cash (30,989 ) (6,056 ) cash, cash equivalents, and restricted cash, beginning of period 330,321 38,206 cash, cash equivalents, and restricted cash, end of period $ 299,332 $ 32,150 non-gaap financial reconciliation reconciliation of gaap reported net income to non-gaap adjusted ebitda: three months ended june 30, six months ended june 30, 2022 2021 2022 2021 (in thousands) (in thousands) reconciliation of net income (loss) to adjusted ebitda: net income (loss) $ 21,574 $ (440 ) $ 81,709 $ (177 ) income tax expense 707 2,092 584 1,055 interest expense, net 5,173 4,826 10,111 8,739 depreciation, amortization and accretion expense 6,863 4,470 13,685 8,858 stock-based compensation 2,657 37 3,962 77 acquisition and entity formation costs 52 85 346 232 gain on fair value remeasurement of contingent consideration (1,140 ) (775 ) (971 ) (2,050 ) change in fair value of redeemable warrant liability (4,659 ) — (23,117 ) — change in fair value of alignment shares liability (16,705 ) — (63,051 ) — other income, net (608 ) (138 ) (593 ) (249 ) adjusted ebitda $ 13,914 $ 10,157 $ 22,665 $ 16,485 reconciliation of non-gaap adjusted ebitda margin: three months ended june 30, six months ended june 30, 2022 2021 2022 2021 (in thousands) (in thousands) reconciliation of adjusted ebitda margin: adjusted ebitda $ 13,914 $ 10,157 $ 22,665 $ 16,485 operating revenues, net 24,762 17,613 43,961 30,084 adjusted ebitda margin 56 % 58 % 52 % 55 % 1 conversion from megawatt hours according to epa avert calculator
