8POINT3 ENERGY PARTNERS LP SAN JOSE, Calif., Sept. 20, 2016 /PRNewswire/ -- 8point3 Energy Partners LP (NASDAQ: CAFD) today announced financial results for its third fiscal quarter ended August 31, 2016.
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-- Exceeds Q3 2016 revenue, net income, Adjusted EBITDA and cash available
for distribution ("CAFD") guidance
-- Announced agreement to acquire 49 percent interest in 102-MW Henrietta
solar project
-- Declared Q3 2016 distribution of $0.2406 per share, an increase of 3.5
percent over the Q2 2016 distribution
-- Forecasts Q4 2016 distribution of $0.2490 per share, an increase of 3.5
percent compared to the Q3 2016 distribution
For the third quarter of fiscal 2016, 8point3 Energy Partners reported revenue of $26.1 million, net income of $15.9 million, Adjusted EBITDA of $32.9 million and CAFD of $24.1 million.
"Our strong results reflect the benefits of our stable and diversified solar project portfolio as we exceeded our financial targets for the third quarter," said Chuck Boynton, 8point3 Energy Partners CEO. "As of the end of August, our portfolio consisted of interests in 530-MW of U.S. solar generating assets."
"Additionally, as we announced today, we have signed an agreement to acquire SunPower's 49 percent minority interest in its 102-MW Henrietta project for $134 million in cash. The project is expected to generate approximately $10.9 million in annual cash distributions and has a 20 year contract life. The project was constructed utilizing SunPower's fully integrated Oasis(®) Power Plant system that is engineered to rapidly and cost-effectively deploy utility-scale solar projects while optimizing land use."
The Henrietta transaction is subject to a financing condition and other customary closing conditions and is expected to close on or about September 30, 2016. The partnership expects to fund the acquisition through some combination of cash on hand, borrowings under its existing credit facility and the issuance of additional equity.
The partnership also announced that a banking group has committed to funding a $250 million increase to its existing credit facility, including a combined $150 million from Bank of America Merrill Lynch and Wells Fargo, who are new to the partnership's bank group. The closing of this financing is contingent on the parties entering into definitive documentation as well as other matters.
In addition, the Board of Directors of the partnership's general partner declared a cash distribution for its Class A shares of $0.2406 per share for the third quarter. The third quarter distribution will be paid on October 14, 2016 to shareholders of record as of October 3, 2016.
As of August 31, 2016, 8point3 Energy Partners had total liquidity of more than $131 million comprised of $30 million in cash on its balance sheet and $101 million available on its five-year revolving credit facility. The partnership's liquidity position excludes the potential increase of up to $250 million pursuant to the exercise of the previously mentioned accordion feature in its existing credit facility.
"We were pleased with our third quarter performance as we exceeded our financial targets in addition to raising our quarterly shareholder distribution by 3.5 percent," said Bryan Schumaker, 8point3 Energy Partners chief financial officer. "With closing of our $250 million accordion credit facility, we will be well positioned to acquire additional projects as well as have sufficient resources to fund future growth."
Guidance
The partnership's fourth quarter 2016 guidance is as follows: revenue of $13.5 million to $14.5 million, net loss of ($1.0) million to breakeven, Adjusted EBITDA of $17.0 million to $18.0 million, CAFD of $22.0 million to $24.0 million and a distribution per share of $0.2490, a forecasted increase of 3.5 percent compared to the Q3 2016 distribution.
As a result of its third quarter 2016 results, the partnership is updating its 2016 guidance. It now expects revenue of $60.2 million to $61.3 million, net income of $7.7 million to $8.7 million, Adjusted EBITDA of $75 million to $76 million and CAFD of $74.8 million to $76.8 million. The partnership's fiscal year CAFD guidance includes approximately $9.0 million in network upgrade reimbursements currently expected to be received in the fourth quarter of 2016 per the partnership's existing interconnection agreement with a utility.
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 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, September 20, 2016, 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 Transition Report on Form 10-K for the transition period from December 28, 2014 to November 30, 2015, filed with the Securities and Exchange Commission on January 28, 2016. 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)
August 31, November 30,
2016 2015
---- ----
Assets
Current assets:
Cash and cash equivalents $29,890 $56,781
Accounts receivable and short-term
financing receivables, net 10,411 4,289
Prepaid and other current assets(1) 14,453 8,033
------ -----
Total current assets 54,754 69,103
Property and equipment, net 693,783 486,942
Long-term financing receivables,
net 80,823 83,376
Investments in unconsolidated
affiliates 349,791 352,070
Other long-term assets 24,823 26,142
------ ------
Total assets $1,203,974 $1,017,633
========== ==========
Liabilities and Equity
Current liabilities:
Accounts payable and other current
liabilities(1) $21,358 $2,612
Short-term debt and financing
obligations 1,964 1,964
Deferred revenue, current portion 1,097 489
----- ---
Total current liabilities 24,419 5,065
Long-term debt and financing
obligations 362,657 297,206
Deferred revenue, net of current
portion 608 746
Other long-term liabilities 39,729 22,483
------ ------
Total liabilities 427,413 325,500
------- -------
Redeemable noncontrolling interests 17,624 89,747
Equity:
Class A shares, 20,018,276 and
20,007,281 issued and outstanding
as of August 31, 2016 and November
30, 2015, respectively 392,916 392,748
Class B shares, 51,000,000 issued
and outstanding as of August 31,
2016 and November 30, 2015 - -
Accumulated earnings 25,016 15,580
------ ------
Total shareholders' equity
attributable to 8point3 Energy
Partners LP 417,932 408,328
Noncontrolling interests 341,005 194,058
------- -------
Total equity 758,937 602,386
------- -------
Total liabilities and equity $1,203,974 $1,017,633
========== ==========
(1) The
Partnership
has related-
party
balances for
transactions
made with
the
Sponsors.
Related-
party
balances
recorded
within
"Prepaid and
other
current
assets" in
the
unaudited
condensed
consolidated
balance
sheets were
$1.1 million
and $0.9
million as
of August
31, 2016 and
November 30,
2015,
respectively.
Related-
party
balances
recorded
within
"Accounts
payable and
other
current
liabilities"
in the
unaudited
condensed
consolidated
balance
sheets were
$17.6
million and
$0.2 million
as of August
31, 2016 and
November 30,
2015,
respectively.
8point3 Energy Partners LP
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Eight Months
Ended Ended
----- -----
August 31, August 31, August 31, August 31,
2016 2015 2016 2015
---- ---- ---- ----
Revenues:
Operating revenues(1) $26,116 $3,076 $46,735 $6,629
------- ------ ------- ------
Total revenues 26,116 3,076 46,735 6,629
Operating costs and expenses(1):
Cost of operations 1,928 73 4,953 2,389
Cost of operations-SunPower, prior
to IPO - 59 - 468
Selling, general and administrative 1,804 2,483 5,096 9,055
Depreciation, amortization and
accretion 6,311 1,172 16,325 2,374
Acquisition-related transaction
costs 599 - 2,261 -
--- --- ----- ---
Total operating costs and expenses 10,642 3,787 28,635 14,286
------ ----- ------ ------
Operating income (loss) 15,474 (711) 18,100 (7,657)
Other expense (income):
Interest expense 3,199 201 9,123 1,646
Interest income (296) (228) (909) (1,223)
Other expense (income) (291) 3,443 (551) 12,695
---- ----- ---- ------
Total other expense, net 2,612 3,416 7,663 13,118
----- ----- ----- ------
Income (loss) before income taxes 12,862 (4,127) 10,437 (20,775)
Income tax provision (5,063) (701) (15,281) (707)
Equity in earnings of unconsolidated
investees 8,075 6,115 13,504 6,115
----- ----- ------ -----
Net income (loss) 15,874 1,287 8,660 (15,367)
Less: Predecessor loss prior to IPO
on June 24, 2015 - (3,441) - (20,095)
--- ------ --- -------
Net income subsequent to IPO 15,874 4,728 8,660 4,728
Less: Net income (loss) attributable
to noncontrolling interests and
redeemable noncontrolling interests 8,281 3,695 (14,263) 3,695
----- ----- ------- -----
Net income attributable to 8point3
Energy Partners LP Class A shares $7,593 $1,033 $22,923 $1,033
====== ====== ======= ======
Net income per Class A share:
Basic $0.38 $0.05 $1.15 $0.05
Diluted $0.38 $0.05 $1.15 $0.05
Distributions per Class A share: $0.23 $ - $0.67 $ -
Weighted average number of Class A
shares:
Basic 20,015 20,002 20,011 20,002
Diluted 35,515 34,415 35,511 34,415
(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 and
$3.9 million
for the
three and
nine months
ended August
31, 2016,
respectively,
and $1.0
million for
the three
and eight
months ended
August 31,
2015.
Related
party
transactions
recorded
within
"Operating
costs and
expenses" in
the
unaudited
condensed
consolidated
statement of
operations
were $1.9
million and
$5.0 million
for the
three and
nine months
ended August
31, 2016,
respectively,
and $0.4
million and
$0.8 million
for the
three and
eight months
ended August
31, 2015,
respectively.
8point3 Energy Partners LP
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended Eight Months Ended
----------------- ------------------
August 31, August 31,
2016 2015
---- ----
Cash flows from operating activities:
Net income (loss) $8,660 $(15,367)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation, amortization and accretion 16,325 2,374
Loss on cash flow hedges - 3,242
Unrealized loss (gain) on interest rate swap (536) 770
Interest expense on financing obligation - 1,193
Loss on termination of financing obligation - 6,478
Reserve for rebates receivable - 1,338
Distributions from unconsolidated investees 15,130 -
Equity in earnings of unconsolidated investees (13,504) (6,115)
Deferred income taxes 15,281 695
Share-based compensation 168 56
Amortization of debt issuance costs 442 -
Changes in allowance for doubtful accounts 270 -
Changes in operating assets and liabilities:
Accounts receivable and financing receivable, net (4,290) 99
Cash grants receivable - 146
Rebates receivable - (121)
Solar power systems to be leased under sales type leases - 160
Prepaid and other current assets (1,398) (4,232)
Deferred revenue 467 426
Accounts payable and other current liabilities 806 1,564
--- -----
Net cash provided by (used in) operating activities 37,821 (7,294)
------ ------
Cash flows from investing activities:
Cash provided by (used in) purchases of property and
equipment 1,415 (225,225)
Cash paid for acquisitions (124,326) -
Distributions from unconsolidated investees 653 4,672
--- -----
Net cash used in investing activities (122,258) (220,553)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of Class A shares, net of issuance
costs (201) 393,750
Proceeds from issuance of bank loans, net of issuance costs 64,991 461,192
Repayment of bank loans - (264,143)
Capital contributions from SunPower 9,973 337,794
Cash distribution to SunPower at IPO - (371,527)
Cash distribution to SunPower for the remaining purchase
price payments of initial projects - (5,993)
Cash distribution to First Solar at IPO - (283,697)
Capital distribution to SunPower - (3,162)
Cash distribution to Class A members (13,487) -
Cash contributions from noncontrolling interests and
redeemable noncontrolling interests -tax equity investors 372 7,031
Cash distributions to noncontrolling interests and
redeemable noncontrolling interests -tax equity investors (4,102) -
------ ---
Net cash provided by financing activities 57,546 271,245
------ -------
Net increase (decrease) in cash and cash equivalents (26,891) 43,398
Cash and cash equivalents, beginning of period 56,781 -
------ ---
Cash and cash equivalents, end of period $29,890 $43,398
======= =======
Noncash transactions:
Assignment of financing receivables to a third-party
financial institution $ - $1,279
Property and equipment acquisitions funded by liabilities 17,410 -
Predecessor liabilities assumed by SunPower - 48,588
Issuance by OpCo of OpCo common units, subordinated units
and IDR for acquisition of interests in First Solar Project
Entities - 408,820
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 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 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, test electricity generation and cash proceeds from sales-type residential leases. 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 distribution. 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 tables present reconciliations of net income (loss) to Adjusted EBITDA and cash available for distribution for the three months ended August 31, 2016, May 31, 2016, and August 31, 2015, the nine months ended August 31, 2016, the eight months ended August 31, 2015, and for the three months ending and the twelve months ending November 30, 2016:
8point3 Energy Partners LP
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)
(Unaudited)
Three Months Ended Nine Months Eight Months
Ended Ended
----- -----
August 31, May 31, August 31, August 31, August 31,
(in thousands) 2016 2016 2015 2016 2015
---- ---- ---- ---- ----
Net income (loss) $15,874 $(161) $1,287 $8,660 $(15,367)
Add (Less):
Interest expense, net of interest
income 2,903 2,715 (27) 8,206 423
Income tax provision 5,063 6,681 701 15,281 707
Depreciation, amortization and
accretion 6,311 5,388 1,172 16,325 2,374
Share-based compensation 56 56 56 168 56
Acquisition-related transaction costs
(1) 599 829 - 2,261 -
Selling, general and administrative
(2) - - 973 - 6,372
Loss on cash flow hedges related to
Quinto interest - - 2,673 - 5,448
rate swaps
Loss on termination of residential
financing - - - - 6,477
obligations
Unrealized gain on derivatives (3) (285) (325) 770 (536) 770
Add proportionate share from equity
method
investments (4)
Interest expense, net of interest
income (54) (53) (21) (149) (21)
Depreciation, amortization and
accretion 2,397 2,234 2,160 7,683 2,160
----- ----- ----- ----- -----
Adjusted EBITDA $32,864 $17,364 $9,744 $57,899 $9,399
Less:
Equity in earnings of unconsolidated
affiliates, net with (4) above (5) (10,418) (7,205) (8,254) (21,038) (8,254)
Cash interest paid (6) (3,278) (3,110) (1,715) (9,176) (1,715)
Cash distributions to non-controlling
interests (2,826) (420) - (3,730) -
Add:
Cash distributions from unconsolidated
affiliates (7) 7,018 2,633 4,672 16,075 4,672
State and local rebates (8) - - - 299 -
Cash proceeds from sales-type
residential leases (9) 630 630 744 1,901 1,976
Indemnity payment from Sponsors (10) 64 - - 10,037 -
Test electricity generation (11) - 421 1,556 421 1,556
--- --- ----- --- -----
Cash available for distribution $24,054 $10,313 $6,747 $52,688 $7,634
======= ======= ====== ======= ======
(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
allocation of
the
Predecessor's
corporate
overhead in
selling, general
and
administrative
expenses.
(3) Represents the
changes in fair
value of
interest rate
swaps that were
not designated
as cash flow
hedges.
(4) Represents our
proportionate
share of net
interest
expense,
depreciation,
amortization and
accretion from
our
unconsolidated
affiliates that
are accounted
for under the
equity method.
(5) Equity in
earnings of
unconsolidated
affiliates
represents the
earnings from
the Solar Gen 2
Project, the
North Star
Project and the
Lost Hills
Blackwell
Project and is
included on our
unaudited
condensed
consolidated
statements of
operations.
(6) Represents cash
interest
payments related
to our term loan
and revolving
credit
facilities post-
IPO. The
interest
payments for the
Quinto Credit
Facility on the
Predecessor's
combined carve-
out financial
statements were
excluded as they
were funded by
one of our
Sponsors.
(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 and the
Lost Hills
Blackwell
Project.
(8) 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.
(9) 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.
(10) Represents
indemnity
payments from
Sponsors owed to
OpCo in
accordance with
the Amended and
Restated Omnibus
Agreement.
(11) 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.
8point3 Energy Partners LP
FY 2016 Q4 Guidance
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)
(in millions) Low High
--- ----
Net loss $(1.0) $ -
Add (Less):
Interest expense, net of interest income 4.0 4.0
Income tax provision 1.5 1.5
Depreciation, amortization and accretion 7.0 7.0
Acquisition-related transaction costs 1.5 1.5
Add proportionate share from equity method investments (1):
Depreciation, amortization and accretion 4.0 4.0
--- ---
Adjusted EBITDA $17.0 $18.0
----- -----
Less:
Equity in earnings of unconsolidated affiliates, net with (1) (8.0) (8.0)
Cash interest paid (4.0) (4.0)
Cash distributions to non-controlling interests (2.5) (2.5)
Add:
Cash distributions from unconsolidated affiliates (2) 12.5 13.0
Cash proceeds from sales-type residential leases 0.5 0.5
Network upgrade refund 6.5 7.0
--- ---
Cash available for distribution $22.0 $24.0
===== =====
(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.
(2) 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 and
the Lost Hills
Blackwell
Project. Cash
distributions
from
unconsolidated
affiliates
includes
approximately
$2.5 million
in network
upgrade
reimbursements
currently
expected to be
received in
the fourth
quarter of
2016.
8point3 Energy Partners LP
FY 2016 Guidance
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)
(in millions) Low High
--- ----
Net income $7.7 $8.7
Add (Less):
Interest expense, net of interest income 12.2 12.2
Income tax provision 16.8 16.8
Depreciation, amortization and accretion 23.3 23.3
Share-based compensation 0.2 0.2
Acquisition-related transaction costs 3.8 3.8
Unrealized gain on derivatives (0.5) (0.5)
Add proportionate share from equity method investments (1):
Depreciation, amortization and accretion 11.5 11.5
---- ----
Adjusted EBITDA $75.0 $76.0
----- -----
Less:
Equity in earnings of unconsolidated affiliates, net with (1) (29.0) (29.0)
Cash interest paid (13.2) (13.2)
Cash distributions to non-controlling interests (6.2) (6.2)
Add:
Cash distributions from unconsolidated affiliates (2) 28.6 29.1
State and local rebates 0.3 0.3
Cash proceeds from sales-type residential leases 2.4 2.4
Indemnity payments from SunPower 10.0 10.0
Test electricity generation 0.4 0.4
Network upgrade refund 6.5 7.0
--- ---
Cash available for distribution $74.8 $76.8
===== =====
(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.
(2) 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 and
the Lost Hills
Blackwell
Project. Cash
distributions
from
unconsolidated
affiliates
includes
approximately
$2.5 million
in network
upgrade
reimbursements
currently
expected to be
received in
the fourth
quarter of
2016.
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SOURCE 8point3 Energy Partners LP
