GREY:CRIUF - Post by User
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retiredcfon Jan 31, 2017 8:24am
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Post# 25776411
RBC
RBCFrom today's Canadian Energy Infrastructure report. GLTA
Crius Energy
Sector Perform – Speculative Risk ($11.00 One-Year Price Target)
Fourth-quarter earnings and ACFFO (tentative release date: March 16)
We expect Crius Energy’s Q4/16 ACFFO/unit to be US$0.20, compared to US$0.22 in Q4/15. We anticipate Adjusted EBITDA to increase to US$15 million, from US$8 million in Q4/15, which is largely attributable to a non-recurring US$5 million charge related to a change in solar revenue recognition and a mild winter in Q4/15. Despite a higher Adjusted EBITDA, we expect ACFFO/unit (diluted) to modestly decrease to US$0.20, down from US$0.22, which is largely due to a higher number of units outstanding following the corporate restructuring of the trust in Q3/16 (Crius Energy Trust ownership was increased to 100%, up from 43.1%).
We expect investors will focus on the integration of the company’s recent acquisitions of two solar platforms, as well as management’s outlook for 2017.
The FactSet mean EBITDA estimate for Q4/16 is US$13 million (five estimates with a range of US$10 million to US$15 million).