- Declares dividend of $0.4220 per Class A common share for third quarter 2018 -
SAN FRANCISCO, Aug. 9, 2018 /PRNewswire/ -- Pattern Energy
Group Inc. (the "Company" or "Pattern Energy") (NASDAQ & TSX: PEGI) today announced its financial results for the 2018 second
quarter.
Highlights
(Comparisons made between fiscal Q2 2018 and fiscal Q2 2017 results, unless otherwise noted)
- Proportional gigawatt hours ("GWh") sold of 2,263 GWh, up 7%
- Net cash provided by operating activities of $95.7 million
- Cash available for distribution ("CAFD") of $58.7 million, up 19% and on track to meet full
year guidance(1)
- Net loss of $1.8 million
- Adjusted EBITDA of $108.4 million, up 18%
- Revenue of $139.9 million, up 30%
- Declared a third quarter dividend of $0.4220 per Class A common share or $1.688 on an annualized basis, subsequent to the end of the period, unchanged from the previous quarter's
dividend
- Announced an agreement to sell the Company's operations in Chile, which principally
consist of its 81 megawatt ("MW") owned interest in the 115 MW El Arrayán Wind project ("El Arrayán Wind") for which Pattern
Energy will receive cash consideration of $68.5 million
- Returned the Santa Isabel project in Puerto Rico to full generating capacity with the
consent of the Puerto Rico Electric Power Authority ("PREPA")
- Since April 1, 2018, and including a funding to be made today, invested $50.9 million in Pattern Energy Group 2 LP ("Pattern Development 2.0"); Pattern Energy's ownership level will
increase to approximately 29% following a redemption to occur shortly at Pattern Development 2.0
"It was a great quarter with CAFD up 19%, as production was solid and our disciplined cost management initiatives delivering
results. We are on track to achieve our targeted CAFD(1) for the year," said Mike
Garland, President and CEO of Pattern Energy. "At 29% ownership of Pattern Development 2.0, we will have achieved our
target ownership level in the development business which we believe will provide meaningful value to shareholders. Our identified
ROFO ("right of first offer") list with Pattern Development 2.0 has grown by four new projects since our original investment in
June of last year. We anticipate the first realized development transaction gains by the end of 2018 or early 2019, and returns
from those gains will be retained and reinvested in the development business. Developing, owning and operating one of the very
best portfolios in the renewables market can be challenging, but we are in a great position to generate long-term value in this
exciting market."
(1) The forward looking measure of 2018 full year cash available for distribution (CAFD) is a non-GAAP measure that cannot
be reconciled to net cash provided by operating activities as the most directly comparable GAAP financial measure without
unreasonable effort primarily because of the uncertainties involved in estimating forward-looking changes in working capital
balances which are added to earnings to arrive at cash provided by operations and subtracted therefrom to arrive at CAFD. A
description of the adjustments to determine CAFD can be found within Item 2, Management's Discussion and Analysis of Financial
Condition and Results of Operations - Key Metrics, of Pattern Energy's 2018 Quarterly Report on Form 10-Q for the period ended
June 30, 2018.
Financial and Operating Results
Pattern Energy sold 2,262,811 megawatt hours ("MWh") of electricity on a proportional basis in the second quarter of 2018
compared to 2,111,627 MWh sold in the same period last year. Pattern Energy sold 4,398,526 MWh of electricity on a
proportional basis for the six months ended June 30, 2018 ("YTD 2018") compared to 4,135,510 MWh sold in the same period
last year. The 7% increase in the quarterly period was primarily due to volume increases as a result of acquisitions in 2017 and
2018 and favorable wind compared to last year, partially offset by curtailment at the Santa Isabel project. Production for the
quarter was 2% below the long-term average forecast for the period.
Net cash provided by operating activities was $95.7 million for the second quarter of 2018
compared to $113.4 million for the same period last year. Net cash provided by operating activities
was $123.5 million for YTD 2018 as compared to $157.2 million
for the same period last year. The decrease in the quarterly period of $17.7 million was primarily
due to $2.9 million in increased transmission costs due to acquisitions in 2017, increased interest
payments of $3.6 million, and increased payments of $43.1 million in
payable, accrued and current liabilities, due primarily to the timing of payments. The decrease to net cash provided by operating
activities was partially offset by a $32.9 million increase in revenue (excluding unrealized loss
on energy derivative and amortization of power purchase agreements ("PPAs")).
Cash available for distribution was $58.7 million for the second quarter of 2018, compared to
$49.2 million for the same period last year. Cash available for distribution was $101.7 million for YTD 2018 compared to $94.4 million for the same period in the
prior year. The $9.4 million, or 19.1% increase in the quarterly period was primarily due to a
$32.9 million increase in revenues (excluding the unrealized loss on the energy derivative and
amortization of PPAs) due to acquisitions in 2017 and early 2018 and a $4.4 million increase in
total distributions from unconsolidated investments. The improvement was partially offset by a $8.0
million decrease in network upgrade reimbursement, a $5.6 million increase in distributions
to noncontrolling interests, a $3.6 million increase in interest expense (excluding amortization of
financing costs and debt discount/premium), a $2.9 million increase in transmission costs, a
$2.7 million decrease in other and a $1.9 million increase in
principal payments of project-level debt.
Net loss was $1.8 million in the second quarter of 2018, compared to a net loss of $14.7 million for the same period last year. Net loss was $14.4 million for YTD
2018 compared to $12.1 million in the same period last year. The improvement of $12.9 million in the quarterly period was primarily attributable to a $32.2
million increase in revenues due to acquisitions in 2017 and 2018, and a $2.7 million
decrease in general and administrative expenses. These improvements were partially offset by increases of $9.6 million in cost of revenues due to the acquisitions in 2017 and 2018, a $4.2
million increase in impairment loss related to Chile assets held for sale, and a
$8.1 million increase in other expense primarily related to decreased earnings from unconsolidated
investments.
Adjusted EBITDA was $108.4 million for the second quarter of 2018 compared to $91.9 million for the same period last year. Adjusted EBITDA was $212.6 million
for YTD 2018 compared to $190.1 million for the same period last year. The $16.5 million increase in the quarterly period was primarily due to a $32.9
million increase in revenue (excluding unrealized loss on energy derivative and amortization of PPAs) primarily
attributable to volume increases as a result of the 2017 and 2018 acquisitions and favorable wind compared to last year,
partially offset by curtailment at the Santa Isabel project and a $2.7 million decrease in general
and administrative expenses primarily due to lower audit and consulting fees in 2018 compared to 2017. The increase was partially
offset by a $17.2 million decrease in earnings from unconsolidated investments, a $2.9 million increase in transmission costs, and a $1.2 million increase in net
loss on transactions, primarily related to the Chile assets held for sale.
2018 Financial Guidance
Pattern Energy is re-confirming its targeted annual cash available for distribution(2) for 2018 within a range of
$151 million to $181 million, representing an increase of 14%
compared to cash available for distribution in 2017.
(2) The forward looking measure of 2018 full year cash available for distribution (CAFD) is a non-GAAP measure that cannot
be reconciled to net cash provided by operating activities as the most directly comparable GAAP financial measure without
unreasonable effort primarily because of the uncertainties involved in estimating forward-looking changes in working capital
balances which are added to earnings to arrive at cash provided by operations and subtracted therefrom to arrive at CAFD. A
description of the adjustments to determine CAFD can be found within Item 2, Management's Discussion and Analysis of Financial
Condition and Results of Operations - Key Metrics, of Pattern Energy's 2018 Quarterly Report on Form 10-Q for the period ended
June 30, 2018.
Quarterly Dividend
Pattern Energy declared a dividend for the third quarter 2018, payable on October 31, 2018, to
holders of record on September 28, 2018 in the amount of $0.4220 per
Class A common share, which represents $1.688 on an annualized basis. The amount of the third
quarter 2018 dividend is unchanged from the second quarter 2018 dividend.
Acquisition Pipeline
Pattern Development 1.0 and Pattern Development 2.0 (together, the "Pattern Development Companies") have a pipeline of
development projects totaling more than 10 GW. Pattern Energy has a ROFO on the pipeline of acquisition opportunities from the
Pattern Development Companies. The identified ROFO list stands at 706 MW of potential owned capacity and represents a portion of
the pipeline of development projects of the Pattern Development Companies, which are subject to Pattern Energy's ROFO. Since its
IPO, Pattern Energy has purchased, or agreed to purchase, 1,564 MW from Pattern Development 1.0 and in aggregate grown the
identified ROFO list from 746 MW to more than 2 GW.
Below is a summary of the identified ROFO projects that Pattern Energy has the right to purchase from the Pattern
Development Companies in connection with its respective purchase rights:
|
|
|
|
|
|
|
|
|
|
|
|
Capacity (MW)
|
|
Identified
ROFO Projects
|
|
Status
|
|
Location
|
|
Construction
Start (1)
|
|
Commercial
Operations (2)
|
|
Contract
Type
|
|
Rated (3)
|
|
Pattern
Development-
Owned (4)
|
|
Pattern Development 1.0 Projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Belle River
|
|
Operational
|
|
Ontario
|
|
2016
|
|
2017
|
|
PPA
|
|
100
|
|
43
|
|
North Kent
|
|
Operational
|
|
Ontario
|
|
2017
|
|
2018
|
|
PPA
|
|
100
|
|
35
|
|
Henvey Inlet
|
|
In construction
|
|
Ontario
|
|
2017
|
|
2019
|
|
PPA
|
|
300
|
|
150
|
|
Pattern Development 2.0 Projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater Big Sky
|
|
In construction
|
|
Montana
|
|
2017
|
|
2018
|
|
PPA
|
|
79
|
|
67
|
|
Crazy Mountain
|
|
Late stage development
|
|
Montana
|
|
2019
|
|
2019
|
|
PPA
|
|
80
|
|
68
|
|
Grady
|
|
In construction
|
|
New Mexico
|
|
2018
|
|
2019
|
|
PPA
|
|
220
|
|
188
|
|
Sumita
|
|
Late stage development
|
|
Japan
|
|
2019
|
|
2021
|
|
PPA
|
|
100
|
|
55
|
|
Ishikari
|
|
Late stage development
|
|
Japan
|
|
2019
|
|
2022
|
|
PPA
|
|
100
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
1,079
|
|
706
|
|
|
|
(1)
|
Represents year of actual or anticipated commencement of
construction.
|
|
|
|
(2)
|
Represents year of actual or anticipated commencement of commercial
operations.
|
|
|
|
(3)
|
Rated capacity represents the maximum electricity generating capacity of a
project in MW. As a result of weather and other conditions, a project or a turbine will not operate at its rated capacity
at all times and the amount of electricity generated will be less than its rated capacity. The amount of electricity
generated may vary based on a variety of factors.
|
|
|
|
(4)
|
Pattern Development-Owned capacity represents the maximum, or rated,
electricity generating capacity of the project in MW multiplied by Pattern Development 1.0's or Pattern Development 2.0's
percentage ownership interest in the distributable cash flow of the project.
|
Cash Available for Distribution and Adjusted EBITDA Non-GAAP Reconciliations
The following tables reconcile non-GAAP net cash provided by operating activities to cash available for distribution and net
loss to Adjusted EBITDA, respectively, for the periods presented (in thousands):
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net cash provided by operating activities(1)
|
$
|
95,720
|
|
|
$
|
113,431
|
|
|
$
|
123,544
|
|
|
$
|
157,183
|
|
|
Changes in operating assets and liabilities
|
(10,079)
|
|
|
(61,379)
|
|
|
18,497
|
|
|
(47,956)
|
|
|
Network upgrade reimbursement
|
294
|
|
|
8,273
|
|
|
576
|
|
|
8,590
|
|
|
Release of restricted cash
|
—
|
|
|
—
|
|
|
2,488
|
|
|
—
|
|
|
Operations and maintenance capital expenditures
|
(10)
|
|
|
(117)
|
|
|
(271)
|
|
|
(263)
|
|
|
Distributions from unconsolidated investments(2)
|
(1,948)
|
|
|
4,185
|
|
|
4,333
|
|
|
8,390
|
|
|
Other
|
2,147
|
|
|
4,808
|
|
|
3,007
|
|
|
1,376
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Distributions to noncontrolling interests
|
(12,088)
|
|
|
(6,517)
|
|
|
(21,275)
|
|
|
(9,164)
|
|
|
Principal payments paid from operating cash flows
|
(15,374)
|
|
|
(13,445)
|
|
|
(29,177)
|
|
|
(23,771)
|
|
|
Cash available for distribution
|
$
|
58,662
|
|
|
$
|
49,239
|
|
|
$
|
101,722
|
|
|
$
|
94,385
|
|
|
|
|
(1)
|
Included in net cash provided by operating activities for the three and six
months ended June 30, 2018 and 2017 are the portions of distributions from unconsolidated investments paid from
cumulative earnings representing the return on investment.
|
|
|
|
(2)
|
Distributions from unconsolidated investments for the three months ended
June 30, 2018 includes an adjustment for a March 2018 distribution received in April 2018 previously included in the
first quarter 2018 cash available for distribution.
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net loss
|
$
|
(1,774)
|
|
|
$
|
(14,684)
|
|
|
$
|
(14,394)
|
|
|
$
|
(12,145)
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income
|
27,284
|
|
|
24,238
|
|
|
52,394
|
|
|
46,299
|
|
|
Tax provision
|
4,410
|
|
|
4,541
|
|
|
11,194
|
|
|
9,316
|
|
|
Depreciation, amortization and accretion
|
62,766
|
|
|
52,752
|
|
|
125,416
|
|
|
99,979
|
|
|
EBITDA
|
92,686
|
|
|
66,847
|
|
|
174,610
|
|
|
143,449
|
|
|
Unrealized loss on energy derivative (1)
|
3,626
|
|
|
4,663
|
|
|
14,673
|
|
|
7,021
|
|
|
(Gain) loss on derivatives
|
(8,801)
|
|
|
4,751
|
|
|
(14,461)
|
|
|
5,399
|
|
|
Impairment loss
|
4,238
|
|
|
—
|
|
|
4,238
|
|
|
—
|
|
|
Other
|
—
|
|
|
807
|
|
|
—
|
|
|
1,119
|
|
|
Adjustments from unconsolidated investments
|
|
|
|
|
|
|
|
|
Plus, proportionate share from unconsolidated
investments:
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income
|
9,506
|
|
|
9,498
|
|
|
18,974
|
|
|
18,838
|
|
|
Tax benefit
|
(207)
|
|
|
—
|
|
|
(207)
|
|
|
—
|
|
|
Depreciation, amortization and accretion
|
8,741
|
|
|
8,575
|
|
|
17,509
|
|
|
17,029
|
|
|
Gain on derivatives
|
(1,379)
|
|
|
(3,272)
|
|
|
(2,714)
|
|
|
(2,788)
|
|
|
Adjusted EBITDA
|
$
|
108,410
|
|
|
$
|
91,869
|
|
|
$
|
212,622
|
|
|
$
|
190,067
|
|
|
|
|
(1)
|
Amount is included in electricity sales on the consolidated statements of
operations.
|
Conference Call and Webcast
Pattern Energy will host a conference call and webcast to discuss these results at 10:30 a.m. Eastern
Time on Thursday, August 9, 2018. Mike Garland, President and CEO, and Mike Lyon, CFO, will co-chair the call. Participants should call (888) 231-8191 or (647) 427-7450
and ask an operator for the Pattern Energy earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay
will be available shortly after the call. To access the replay, please dial (855) 859-2056 or (416) 849-0833 and enter
access code 3199694. The replay recording will be available until 11:59 p.m. Eastern Time,
August 30, 2018.
A live webcast of the conference call will be also available on the events page in the investor section of Pattern Energy's
website at www.patternenergy.com. An archived webcast will be available
for one year.
About Pattern Energy
Pattern Energy Group Inc. (Pattern Energy) is an independent power company listed on the NASDAQ Global Select Market and
Toronto Stock Exchange. Pattern Energy has a portfolio of 24 wind and solar power facilities, including one project it has
agreed to acquire and one project it has agreed to sell, with a total owned interest of 2,861 MW in the United States, Canada, Japan and
Chile that use proven, best-in-class technology. Pattern Energy's wind and solar power
facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of
the business. For more information, visit www.patternenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities
laws, including statements regarding the ability to achieve the 2018 cash available for distribution target; the ability to fund
an additional investment into Pattern Development 2.0 shortly and for redemptions of certain other investors in Pattern
Development 2.0 to occur; the ability to consummate the agreement to sell the Company's operations in Chile; the ability of the investments in development to provide meaningful value to shareholders; the timing
of the receipt of the first development profits (if ever); and the ability of the Company's portfolio to generate long-term
value. These forward-looking statements represent the Company's expectations or beliefs concerning future events, and it is
possible that the results described in this press release will not be achieved. These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to
differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company
does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such
factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary
statements in the Company's annual report on Form 10-K and any quarterly reports on Form 10-Q. The risk factors and other factors
noted therein could cause actual events or the Company's actual results to differ materially from those contained in any
forward-looking statement.
|
Pattern Energy Group Inc.
Consolidated Balance Sheets
(In thousands of U.S. Dollars, except share data)
(Unaudited)
|
|
June 30,
|
|
December 31,
|
|
2018
|
|
2017
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
116,538
|
|
|
$
|
116,753
|
|
|
Restricted cash
|
4,336
|
|
|
9,065
|
|
|
Counterparty collateral
|
5,824
|
|
|
29,780
|
|
|
Trade receivables
|
59,371
|
|
|
54,900
|
|
|
Derivative assets, current
|
16,148
|
|
|
19,445
|
|
|
Prepaid expenses
|
18,660
|
|
|
17,847
|
|
|
Deferred financing costs, current, net of accumulated amortization of
$2,409 and $2,580 as of June 30, 2018 and December 31, 2017, respectively
|
1,422
|
|
|
1,415
|
|
|
Assets held for sale
|
307,231
|
|
|
—
|
|
|
Other current assets
|
21,726
|
|
|
21,105
|
|
|
Total current assets
|
551,256
|
|
|
270,310
|
|
|
Restricted cash
|
10,004
|
|
|
12,162
|
|
|
Major construction advances
|
48,898
|
|
|
—
|
|
|
Construction in progress
|
192,317
|
|
|
—
|
|
|
Property, plant and equipment, net
|
3,797,098
|
|
|
3,965,121
|
|
|
Unconsolidated investments
|
343,512
|
|
|
311,223
|
|
|
Derivative assets
|
17,341
|
|
|
9,628
|
|
|
Deferred financing costs
|
8,744
|
|
|
7,784
|
|
|
Net deferred tax assets
|
3,353
|
|
|
6,349
|
|
|
Finite-lived intangible assets, net
|
226,422
|
|
|
136,048
|
|
|
Goodwill
|
57,736
|
|
|
—
|
|
|
Other assets
|
27,421
|
|
|
22,906
|
|
|
Total assets
|
$
|
5,284,102
|
|
|
$
|
4,741,531
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable and other accrued liabilities
|
$
|
38,799
|
|
|
$
|
53,615
|
|
|
Accrued construction costs
|
9,383
|
|
|
1,369
|
|
|
Counterparty collateral liability
|
5,824
|
|
|
29,780
|
|
|
Accrued interest
|
14,383
|
|
|
16,460
|
|
|
Dividends payable
|
42,072
|
|
|
41,387
|
|
|
Derivative liabilities, current
|
3,188
|
|
|
8,409
|
|
|
Revolving credit facility
|
201,000
|
|
|
—
|
|
|
Current portion of long-term debt, net
|
61,583
|
|
|
51,996
|
|
|
Liabilities related to assets held for sale
|
207,073
|
|
|
—
|
|
|
Other current liabilities
|
25,643
|
|
|
14,018
|
|
|
Total current liabilities
|
608,948
|
|
|
217,034
|
|
|
Long-term debt, net
|
1,923,743
|
|
|
1,878,735
|
|
|
Derivative liabilities
|
24,464
|
|
|
20,972
|
|
|
Net deferred tax liabilities
|
116,849
|
|
|
56,491
|
|
|
Finite-lived intangible liability, net
|
58,195
|
|
|
51,194
|
|
|
Contingent liabilities
|
165,214
|
|
|
62,398
|
|
|
Other long-term liabilities
|
152,998
|
|
|
106,565
|
|
|
Total liabilities
|
3,050,411
|
|
|
2,393,389
|
|
|
Commitments and contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Class A common stock, $0.01 par value per share: 500,000,000 shares
authorized; 98,096,323 and 97,860,048 shares outstanding as of June 30, 2018 and December 31, 2017,
respectively
|
983
|
|
|
980
|
|
|
Additional paid-in capital
|
1,210,610
|
|
|
1,234,846
|
|
|
Accumulated income (loss)
|
—
|
|
|
(112,175)
|
|
|
Accumulated other comprehensive loss
|
(32,756)
|
|
|
(25,691)
|
|
|
Treasury stock, at cost; 178,346 and 157,812 shares of Class A common stock
as of June 30, 2018 and December 31, 2017, respectively
|
(3,892)
|
|
|
(3,511)
|
|
|
Total equity before noncontrolling interest
|
1,174,945
|
|
|
1,094,449
|
|
|
Noncontrolling interest
|
1,058,746
|
|
|
1,253,693
|
|
|
Total equity
|
2,233,691
|
|
|
2,348,142
|
|
|
Total liabilities and equity
|
$
|
5,284,102
|
|
|
$
|
4,741,531
|
|
|
Pattern Energy Group Inc.
|
|
Consolidated Statements of Operations
|
|
(In thousands of U.S. dollars, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Electricity sales
|
$
|
135,951
|
|
|
$
|
105,736
|
|
|
$
|
238,098
|
|
|
$
|
204,170
|
|
|
Other revenue
|
3,989
|
|
|
2,024
|
|
|
13,501
|
|
|
4,423
|
|
|
Total revenue
|
139,940
|
|
|
107,760
|
|
|
251,599
|
|
|
208,593
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Project expense
|
33,665
|
|
|
33,405
|
|
|
68,227
|
|
|
62,505
|
|
|
Transmission costs
|
7,643
|
|
|
4,722
|
|
|
14,833
|
|
|
4,792
|
|
|
Depreciation, amortization and accretion
|
54,979
|
|
|
48,518
|
|
|
110,431
|
|
|
92,258
|
|
|
Total cost of revenue
|
96,287
|
|
|
86,645
|
|
|
193,491
|
|
|
159,555
|
|
|
Gross profit
|
43,653
|
|
|
21,115
|
|
|
58,108
|
|
|
49,038
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
General and administrative
|
9,089
|
|
|
11,777
|
|
|
19,795
|
|
|
22,901
|
|
|
Related party general and administrative
|
3,663
|
|
|
3,576
|
|
|
7,731
|
|
|
7,002
|
|
|
Impairment loss
|
4,238
|
|
|
—
|
|
|
4,238
|
|
|
—
|
|
|
Total operating expenses
|
16,990
|
|
|
15,353
|
|
|
31,764
|
|
|
29,903
|
|
|
Operating income
|
26,663
|
|
|
5,762
|
|
|
26,344
|
|
|
19,135
|
|
|
Other expense:
|
|
|
|
|
|
|
|
|
Interest expense
|
(27,709)
|
|
|
(24,839)
|
|
|
(53,153)
|
|
|
(47,394)
|
|
|
Gain (loss) on derivatives
|
8,801
|
|
|
(4,751)
|
|
|
14,461
|
|
|
(5,399)
|
|
|
Earnings (loss) in unconsolidated investments, net
|
(742)
|
|
|
14,519
|
|
|
17,470
|
|
|
31,395
|
|
|
Net loss on transactions
|
(2,002)
|
|
|
(807)
|
|
|
(3,100)
|
|
|
(1,119)
|
|
|
Other income (expense), net
|
(2,375)
|
|
|
(27)
|
|
|
(5,222)
|
|
|
553
|
|
|
Total other expense
|
(24,027)
|
|
|
(15,905)
|
|
|
(29,544)
|
|
|
(21,964)
|
|
|
Net income (loss) before income tax
|
2,636
|
|
|
(10,143)
|
|
|
(3,200)
|
|
|
(2,829)
|
|
|
Tax provision
|
4,410
|
|
|
4,541
|
|
|
11,194
|
|
|
9,316
|
|
|
Net loss
|
(1,774)
|
|
|
(14,684)
|
|
|
(14,394)
|
|
|
(12,145)
|
|
|
Net loss attributable to noncontrolling interest
|
(34,492)
|
|
|
(28,904)
|
|
|
(183,034)
|
|
|
(32,018)
|
|
|
Net income attributable to Pattern Energy
|
$
|
32,718
|
|
|
$
|
14,220
|
|
|
$
|
168,640
|
|
|
$
|
19,873
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
97,459,472
|
|
|
87,065,591
|
|
|
97,444,016
|
|
|
87,064,110
|
|
|
Diluted
|
97,496,217
|
|
|
87,217,381
|
|
|
105,662,687
|
|
|
87,257,130
|
|
|
Earnings per share attributable to Pattern Energy
|
|
|
|
|
|
|
|
|
Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.34
|
|
|
$
|
0.16
|
|
|
$
|
1.73
|
|
|
$
|
0.23
|
|
|
Diluted
|
$
|
0.34
|
|
|
$
|
0.16
|
|
|
$
|
1.67
|
|
|
$
|
0.23
|
|
|
Dividends declared per Class A common share
|
$
|
0.42
|
|
|
$
|
0.42
|
|
|
$
|
0.84
|
|
|
$
|
0.83
|
|
|
Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
(Unaudited)
|
|
|
|
Six months ended June 30,
|
|
2018
|
|
2017
|
|
Operating activities
|
|
|
|
|
Net loss
|
$
|
(14,394)
|
|
|
$
|
(12,145)
|
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation, amortization and accretion
|
110,431
|
|
|
92,258
|
|
|
Contingent liability accretion
|
5,716
|
|
|
—
|
|
|
Impairment loss
|
4,238
|
|
|
—
|
|
|
Amortization of financing costs
|
2,526
|
|
|
3,852
|
|
|
Amortization of debt discount/premium, net
|
2,477
|
|
|
2,227
|
|
|
Amortization of power purchase agreements, net
|
3,894
|
|
|
1,489
|
|
|
Loss (gain) on derivatives
|
(1,542)
|
|
|
10,331
|
|
|
Stock-based compensation
|
2,277
|
|
|
2,768
|
|
|
Deferred taxes
|
10,914
|
|
|
9,149
|
|
|
Earnings in unconsolidated investments, net
|
(17,470)
|
|
|
(31,395)
|
|
|
Distributions from unconsolidated investments
|
33,041
|
|
|
31,710
|
|
|
Other reconciling items
|
(67)
|
|
|
(1,017)
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Counterparty collateral asset
|
23,956
|
|
|
9,199
|
|
|
Trade receivables
|
(9,689)
|
|
|
(7,995)
|
|
|
Prepaid expenses
|
899
|
|
|
2,202
|
|
|
Other current assets
|
6,316
|
|
|
(3,638)
|
|
|
Other assets (non-current)
|
(1,737)
|
|
|
2,561
|
|
|
Accounts payable and other accrued liabilities
|
(13,889)
|
|
|
31,001
|
|
|
Counterparty collateral liability
|
(23,956)
|
|
|
(9,199)
|
|
|
Accrued interest
|
166
|
|
|
8,569
|
|
|
Other current liabilities
|
(7,141)
|
|
|
4,333
|
|
|
Long-term liabilities
|
7,858
|
|
|
10,648
|
|
|
Contingent liabilities
|
(1,508)
|
|
|
275
|
|
|
Derivatives
|
228
|
|
|
—
|
|
|
Net cash provided by operating activities
|
123,544
|
|
|
157,183
|
|
|
Investing activities
|
|
|
|
|
Cash paid for acquisitions, net of cash and restricted cash
acquired
|
(157,543)
|
|
|
(170,028)
|
|
|
Payment for construction advances/deposits
|
(53,727)
|
|
|
—
|
|
|
Payment for construction in progress
|
(24,644)
|
|
|
—
|
|
|
Capital expenditures
|
(7,441)
|
|
|
(39,087)
|
|
|
Distributions from unconsolidated investments
|
4,333
|
|
|
8,390
|
|
|
Other assets
|
(319)
|
|
|
7,552
|
|
|
Investment in Pattern Development 2.0
|
(57,055)
|
|
|
—
|
|
|
Other investing activities
|
—
|
|
|
12
|
|
|
Net cash used in investing activities
|
(296,396)
|
|
|
(193,161)
|
|
|
Financing activities
|
|
|
|
|
Dividends paid
|
(82,487)
|
|
|
(71,544)
|
|
|
Capital distributions - noncontrolling interest
|
(21,274)
|
|
|
(9,163)
|
|
|
Payment for financing fees
|
(6,954)
|
|
|
(7,740)
|
|
|
Proceeds from revolving credit facility
|
333,000
|
|
|
85,000
|
|
|
Repayment of revolving credit facility
|
(132,000)
|
|
|
(205,000)
|
|
|
Proceeds from long-term debt
|
126,775
|
|
|
404,395
|
|
|
Repayment of long-term debt
|
(34,541)
|
|
|
(74,824)
|
|
|
Repayment of note payable - related party
|
(909)
|
|
|
—
|
|
|
Other financing activities
|
154
|
|
|
(3,618)
|
|
|
Net cash provided by financing activities
|
181,764
|
|
|
117,506
|
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted
cash
|
(2,388)
|
|
|
2,248
|
|
|
Net increase in cash, cash equivalents and restricted cash including cash
classified within current assets and liabilities held for sale
|
6,524
|
|
|
83,776
|
|
|
Add: Net (decrease) in cash classified within current assets and
liabilities held for sale
|
(13,626)
|
|
|
—
|
|
|
Net change in cash, cash equivalents and restricted cash
|
(7,102)
|
|
|
83,776
|
|
|
Cash, cash equivalents and restricted cash at beginning of
period
|
137,980
|
|
|
109,371
|
|
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
130,878
|
|
|
$
|
193,147
|
|
|
Supplemental disclosures
|
|
|
|
|
Cash payments for income taxes
|
$
|
443
|
|
|
$
|
288
|
|
|
Cash payments for interest expense
|
$
|
48,721
|
|
|
$
|
33,666
|
|
|
Business combination:
|
|
|
|
|
Assets acquired, net of cash and restricted cash acquired
|
$
|
627,241
|
|
|
$
|
665,014
|
|
|
Liabilities assumed
|
352,570
|
|
|
148,456
|
|
|
Less: Noncontrolling interests
|
11,113
|
|
|
325,600
|
|
|
Net assets acquired, net of cash and restricted cash
acquired
|
$
|
263,558
|
|
|
$
|
190,958
|
|
|
Schedule of non-cash activities
|
|
|
|
|
Change in property, plant and equipment
|
$
|
117,103
|
|
|
$
|
1,110
|
|
|
Change in other assets
|
$
|
202
|
|
|
$
|
2,492
|
|
|
Accrual of dividends
|
$
|
87
|
|
|
$
|
—
|
|
View original content with multimedia:http://www.prnewswire.com/news-releases/pattern-energy-reports-second-quarter-2018-financial-results-300694587.html
SOURCE Pattern Energy Group Inc.