- Declares dividend of $0.4220 per Class A common share for fourth quarter 2018 -
SAN FRANCISCO, Nov. 5, 2018 /PRNewswire/ -- Pattern Energy
Group Inc. (the "Company" or "Pattern Energy") (NASDAQ & TSX: PEGI) today announced its financial results for the 2018 third
quarter.
Highlights
(Comparisons made between fiscal Q3 2018 and fiscal Q3 2017 results, unless otherwise noted)
- Proportional gigawatt hours ("GWh") sold of 1,623 GWh, up 7%
- Net cash provided by operating activities of $106.9 million
- Cash available for distribution ("CAFD") of $31.7 million, up 235% and on track to meet full
year guidance(1)
- Net loss of $31.5 million
- Adjusted EBITDA of $79.5 million, up 45%
- Revenue of $118.4 million, up 29%
- Declared a fourth 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
- Committed to a plan to repower the 283 MW Gulf Wind project starting in 2019
- Acquired a 51% owned interest in the 143 MW Mont Sainte-Marguerite project in Québec, for a purchase price of $37.7 million, representing a 10x multiple of the five-year average CAFD(1) of the project
- Completed the sale of the Company's operations in Chile, which principally consist of its
81 MW owned interest in the 115 MW El Arrayán project ("El Arrayán") for which Pattern Energy received cash proceeds of
$70.4 million
"It was another solid quarter with CAFD up more than three times the same period last year, which puts us in a great position
to achieve our targeted CAFD(1) for the year," said Mike Garland, President of Pattern
Energy. "We continue to take proactive measures to increase our CAFD without issuing common equity including, asset recycling,
repowering Gulf Wind and the implementation of cost savings. During the quarter we sold El Arrayán at a premium to the multiple
at which we trade and we are in the final stages of a second sale. This asset recycling provides us additional flexibility to
make new investments in accretive opportunities, like the Mont Sainte-Marguerite acquisition or the Gulf Wind repowering, which
increase CAFD. As the opportunity set at Pattern Energy Group 2 LP ("Pattern Development 2.0") continues to mature and grow,
especially in exciting markets like Japan, our material ownership interest in the development
business is a clear differentiator to other players in the market."
(1) The forward looking measures of 2018 full year cash available for distribution (CAFD) and the five-year average annual
purchase price multiple are non-GAAP measures 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 September 30, 2018.
Financial and Operating Results
Pattern Energy sold 1,622,991 megawatt hours ("MWh") of electricity on a proportional basis in the third quarter of 2018
compared to 1,513,997 MWh sold in the same period last year. Pattern Energy sold 6,021,515 MWh of electricity on a proportional
basis for the nine months ended September 30, 2018 ("YTD 2018") compared to 5,663,782 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, favorable wind and increased availability compared to last year. Production for the quarter was 8%
below the long-term average forecast for the period with strength in Canada, Japan and Puerto Rico offset by weakness in the Eastern U.S.
Net cash provided by operating activities was $106.9 million for the third quarter of 2018
compared to $2.1 million for the same period last year. Net cash provided by operating activities
was $230.5 million for YTD 2018 as compared to $159.3 million for the
same period last year. The increase in the quarterly period of $104.8 million was primarily due to
a $24.3 million increase in revenue (excluding unrealized loss on energy derivative and
amortization included in electricity sales), a $33.8 million increase in advanced lease revenue,
decreased payments of $26.7 million in payable, accrued and current liabilities, due primarily to
the timing of payments, a $13.6 million increase in other current assets primarily due to a
$7.7 million increase in sales tax receivable and a $7.3 million
increase in related party receivable, a $6.5 million decrease in interest payments, and a
$1.7 million decrease in transmission costs. The increase to net cash provided by operating
activities was partially offset by a decrease of $1.6 million in distributions from unconsolidated
investments.
Cash available for distribution increased 235% to $31.7 million for the third quarter of 2018,
compared to $9.5 million for the same period last year. Cash available for distribution increased
28% to $133.4 million for YTD 2018 compared to $103.8 million for the
same period in the prior year. The $22.2 million increase in the quarterly period was primarily due
to a $24.3 million increase in revenues (excluding the unrealized loss on the energy derivative and
amortization included in electricity sales) due to acquisitions in 2017 and 2018, a $5.9 million
decrease in principal payments of project-level debt, a $1.7 million decrease in transmission costs
and a $0.8 million increase in the release of restricted cash. These increases were partially
offset by a $3.0 million increase in distributions to noncontrolling interests, a $4.0 million decrease in distributions from unconsolidated investments and $1.4
million of costs related to the sale of El Arrayán.
Net loss was $31.5 million in the third quarter of 2018, compared to a net loss of $48.4 million for the same period last year. Net loss was $45.9 million for YTD
2018 compared to a net loss of $60.5 million in the same period last year. The improvement of
$16.8 million in the quarterly period was primarily attributable to a $26.4
million increase in revenue due to 2017 and 2018 acquisitions and a $5.1 million decrease in
other expense primarily due to gains on derivatives. These increases were partially offset by a $4.5
million increase in cost of revenue related to 2017 and 2018 acquisitions, a $3.3 million
increase in operating expenses related to an impairment expense on the El Arrayán sale and a $6.9
million increase in tax provisions.
Adjusted EBITDA increased 45% to $79.5 million for the third quarter of 2018 compared to
$54.7 million for the same period last year. Adjusted EBITDA increased 19% to $292.2 million for YTD 2018 compared to $244.8 million for the same period last
year. The $24.8 million increase in the quarterly period was primarily due to a $24.3 million increase in revenue (excluding unrealized loss on energy derivative and amortization included in
electricity sales) primarily attributable to volume increases as a result of 2017 and 2018 acquisitions, favorable wind and
increased availability compared to last year. Adjusted EBITDA for the third quarter also reflects a charge to earnings of
approximately $4.3 million for the equity pick-up in the financial results of Pattern Development
2.0.
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
September 30, 2018.
Quarterly Dividend
Pattern Energy declared a dividend for the fourth quarter 2018, payable on January 31, 2019, to
holders of record on December 31, 2018 in the amount of $0.4220 per
Class A common share, which represents $1.688 on an annualized basis. The amount of the fourth
quarter 2018 dividend is unchanged from the third quarter 2018 dividend.
Acquisition Pipeline
Pattern Energy Group LP ("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 743 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
|
|
Operational
|
|
Montana
|
|
2018
|
|
2018
|
|
PPA
|
|
80
|
|
80
|
Crazy Mountain
|
|
Late stage development
|
|
Montana
|
|
2019
|
|
2019
|
|
PPA
|
|
80
|
|
80
|
Grady
|
|
In construction
|
|
New Mexico
|
|
2018
|
|
2019
|
|
PPA
|
|
220
|
|
188
|
Sumita
|
|
Late stage development
|
|
Japan
|
|
2019
|
|
2022
|
|
PPA
|
|
99
|
|
55
|
Ishikari
|
|
Late stage development
|
|
Japan
|
|
2020
|
|
2022
|
|
PPA
|
|
112
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
1,091
|
|
743
|
|
|
(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 wind 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
September 30,
|
|
Nine months ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net cash provided by operating activities(1)
|
$
|
106,922
|
|
|
$
|
2,147
|
|
|
$
|
230,466
|
|
|
$
|
159,330
|
|
Changes in operating assets and liabilities
|
(54,936)
|
|
|
25,481
|
|
|
(36,439)
|
|
|
(22,475)
|
|
Network upgrade reimbursement
|
303
|
|
|
346
|
|
|
879
|
|
|
8,936
|
|
Release of restricted cash
|
759
|
|
|
—
|
|
|
3,247
|
|
|
—
|
|
Operations and maintenance capital expenditures
|
(169)
|
|
|
(254)
|
|
|
(440)
|
|
|
(517)
|
|
Distributions from unconsolidated investments
|
419
|
|
|
2,821
|
|
|
4,752
|
|
|
11,211
|
|
Other
|
(2,779)
|
|
|
598
|
|
|
228
|
|
|
1,974
|
|
Less:
|
|
|
|
|
|
|
|
Distributions to noncontrolling interests
|
(7,592)
|
|
|
(4,537)
|
|
|
(28,867)
|
|
|
(13,701)
|
|
Principal payments paid from operating cash flows
|
(11,255)
|
|
|
(17,140)
|
|
|
(40,432)
|
|
|
(40,911)
|
|
Cash available for distribution
|
$
|
31,672
|
|
|
$
|
9,462
|
|
|
$
|
133,394
|
|
|
$
|
103,847
|
|
|
|
(1)
|
Included in net cash provided by operating activities for the three and
nine months ended September 30, 2018 and 2017 are the portions of distributions from unconsolidated investments paid
from cumulative earnings representing the return on investment.
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net loss
|
$
|
(31,547)
|
|
|
$
|
(48,376)
|
|
|
$
|
(45,941)
|
|
|
$
|
(60,521)
|
|
Plus:
|
|
|
|
|
|
|
|
Interest expense, net of interest income
|
27,021
|
|
|
26,710
|
|
|
79,415
|
|
|
73,009
|
|
Tax provision (benefit)
|
3,043
|
|
|
(3,839)
|
|
|
14,237
|
|
|
5,477
|
|
Depreciation, amortization and accretion
|
63,013
|
|
|
56,650
|
|
|
188,429
|
|
|
156,629
|
|
EBITDA
|
61,530
|
|
|
31,145
|
|
|
236,140
|
|
|
174,594
|
|
Unrealized loss on energy derivative (1)
|
318
|
|
|
3,113
|
|
|
14,991
|
|
|
10,134
|
|
(Gain) loss on derivatives
|
(1,536)
|
|
|
6,288
|
|
|
(15,997)
|
|
|
11,687
|
|
Impairment expense
|
2,325
|
|
|
—
|
|
|
6,563
|
|
|
—
|
|
Other
|
2,180
|
|
|
466
|
|
|
2,180
|
|
|
1,585
|
|
Plus, proportionate share from unconsolidated
investments:
|
|
|
|
|
|
|
|
Interest expense, net of interest income
|
9,306
|
|
|
10,270
|
|
|
28,280
|
|
|
29,108
|
|
Tax provision
|
1,142
|
|
|
—
|
|
|
935
|
|
|
—
|
|
Depreciation, amortization and accretion
|
8,888
|
|
|
9,361
|
|
|
26,397
|
|
|
26,390
|
|
Gain on derivatives
|
(4,619)
|
|
|
(5,908)
|
|
|
(7,333)
|
|
|
(8,696)
|
|
Adjusted EBITDA
|
$
|
79,534
|
|
|
$
|
54,735
|
|
|
$
|
292,156
|
|
|
$
|
244,802
|
|
|
|
(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 Monday, November 5, 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 4369558. The replay recording will be available until 11:59 p.m. Eastern Time,
November 28, 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 with a total owned interest of
2,861 MW in the United States, Canada and Japan 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
consummate a repowering of the Gulf Wind project, the ability of the Company to consummate the second sale as part of its asset
recycling strategy, the ability of the Company's measures to increase CAFD, the ability of the Company's ownership in Pattern
Development 2.0 to differentiate it in the market, and the anticipated commencement date of construction and commercial
operations of certain of the identified ROFO projects. 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)
|
|
|
September 30,
|
|
December 31,
|
|
2018
|
|
2017
|
Assets
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
125,689
|
|
|
$
|
116,753
|
|
Restricted cash
|
6,324
|
|
|
9,065
|
|
Counterparty collateral
|
5,855
|
|
|
29,780
|
|
Trade receivables
|
50,303
|
|
|
54,900
|
|
Derivative assets, current
|
15,842
|
|
|
19,445
|
|
Prepaid expenses
|
21,080
|
|
|
17,847
|
|
Deferred financing costs, current, net of accumulated amortization of
$2,670 and $2,580 as of September 30, 2018 and December 31, 2017, respectively
|
1,482
|
|
|
1,415
|
|
Other current assets
|
13,584
|
|
|
21,105
|
|
Total current assets
|
240,159
|
|
|
270,310
|
|
Restricted cash
|
13,899
|
|
|
12,162
|
|
Major construction advances
|
71,406
|
|
|
—
|
|
Construction in progress
|
221,185
|
|
|
—
|
|
Property, plant and equipment, net
|
4,109,864
|
|
|
3,965,121
|
|
Unconsolidated investments
|
372,380
|
|
|
311,223
|
|
Derivative assets
|
24,757
|
|
|
9,628
|
|
Deferred financing costs
|
8,797
|
|
|
7,784
|
|
Net deferred tax assets
|
1,616
|
|
|
6,349
|
|
Finite-lived intangible assets, net
|
221,183
|
|
|
136,048
|
|
Goodwill
|
56,453
|
|
|
—
|
|
Other assets
|
30,372
|
|
|
22,906
|
|
Total assets
|
$
|
5,372,071
|
|
|
$
|
4,741,531
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable and other accrued liabilities
|
$
|
57,360
|
|
|
$
|
53,615
|
|
Accrued construction costs
|
38,442
|
|
|
1,369
|
|
Counterparty collateral liability
|
5,855
|
|
|
29,780
|
|
Accrued interest
|
7,621
|
|
|
16,460
|
|
Dividends payable
|
42,185
|
|
|
41,387
|
|
Derivative liabilities, current
|
2,190
|
|
|
8,409
|
|
Revolving credit facility, current
|
186,372
|
|
|
—
|
|
Current portion of long-term debt, net
|
63,671
|
|
|
51,996
|
|
Contingent liabilities, current
|
24,771
|
|
|
2,592
|
|
Other current liabilities
|
12,955
|
|
|
11,426
|
|
Total current liabilities
|
441,422
|
|
|
217,034
|
|
Revolving credit facility
|
23,760
|
|
|
—
|
|
Long-term debt, net
|
2,105,834
|
|
|
1,878,735
|
|
Derivative liabilities
|
14,985
|
|
|
20,972
|
|
Net deferred tax liabilities
|
120,104
|
|
|
56,491
|
|
Finite-lived intangible liabilities, net
|
57,039
|
|
|
51,194
|
|
Contingent liabilities
|
140,048
|
|
|
62,398
|
|
Asset retirement obligations
|
192,006
|
|
|
56,619
|
|
Other long-term liabilities
|
64,033
|
|
|
49,946
|
|
Advanced lease revenue
|
28,268
|
|
|
—
|
|
Total liabilities
|
3,187,499
|
|
|
2,393,389
|
|
Commitments and contingencies
|
|
|
|
Equity:
|
|
|
|
Class A common stock, $0.01 par value per share: 500,000,000 shares
authorized; 98,095,886 and 97,860,048 shares outstanding as of September 30, 2018 and December 31, 2017,
respectively
|
983
|
|
|
980
|
|
Additional paid-in capital
|
1,170,450
|
|
|
1,234,846
|
|
Accumulated loss
|
(12,595)
|
|
|
(112,175)
|
|
Accumulated other comprehensive loss
|
(15,716)
|
|
|
(25,691)
|
|
Treasury stock, at cost; 178,783 and 157,812 shares of Class A common stock
as of September 30, 2018 and December 31, 2017, respectively
|
(3,901)
|
|
|
(3,511)
|
|
Total equity before noncontrolling interest
|
1,139,221
|
|
|
1,094,449
|
|
Noncontrolling interest
|
1,045,351
|
|
|
1,253,693
|
|
Total equity
|
2,184,572
|
|
|
2,348,142
|
|
Total liabilities and equity
|
$
|
5,372,071
|
|
|
$
|
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
September 30,
|
|
Nine months ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
Electricity sales
|
$
|
115,417
|
|
|
$
|
89,807
|
|
|
$
|
353,515
|
|
|
$
|
293,977
|
|
Other revenue
|
2,976
|
|
|
2,223
|
|
|
16,477
|
|
|
6,646
|
|
Total revenue
|
118,393
|
|
|
92,030
|
|
|
369,992
|
|
|
300,623
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
Project expense
|
37,229
|
|
|
33,932
|
|
|
105,456
|
|
|
96,437
|
|
Transmission costs
|
5,700
|
|
|
7,421
|
|
|
20,533
|
|
|
12,213
|
|
Depreciation, amortization and accretion
|
55,267
|
|
|
52,379
|
|
|
165,698
|
|
|
144,637
|
|
Total cost of revenue
|
98,196
|
|
|
93,732
|
|
|
291,687
|
|
|
253,287
|
|
Gross profit (loss)
|
20,197
|
|
|
(1,702)
|
|
|
78,305
|
|
|
47,336
|
|
Operating expenses:
|
|
|
|
|
|
|
|
General and administrative
|
9,305
|
|
|
9,068
|
|
|
29,100
|
|
|
31,969
|
|
Related party general and administrative
|
4,285
|
|
|
3,587
|
|
|
12,016
|
|
|
10,589
|
|
Impairment expense
|
2,325
|
|
|
—
|
|
|
6,563
|
|
|
—
|
|
Total operating expenses
|
15,915
|
|
|
12,655
|
|
|
47,679
|
|
|
42,558
|
|
Operating income (loss)
|
4,282
|
|
|
(14,357)
|
|
|
30,626
|
|
|
4,778
|
|
Other expense:
|
|
|
|
|
|
|
|
Interest expense
|
(27,460)
|
|
|
(27,147)
|
|
|
(80,613)
|
|
|
(74,541)
|
|
Gain (loss) on derivatives
|
1,536
|
|
|
(6,288)
|
|
|
15,997
|
|
|
(11,687)
|
|
Earnings (loss) in unconsolidated investments, net
|
(4,304)
|
|
|
(3,964)
|
|
|
13,166
|
|
|
27,431
|
|
Net earnings (loss) on transactions
|
1,130
|
|
|
(466)
|
|
|
(1,970)
|
|
|
(1,585)
|
|
Other income (expense), net
|
(3,688)
|
|
|
7
|
|
|
(8,910)
|
|
|
560
|
|
Total other expense
|
(32,786)
|
|
|
(37,858)
|
|
|
(62,330)
|
|
|
(59,822)
|
|
Net loss before income tax
|
(28,504)
|
|
|
(52,215)
|
|
|
(31,704)
|
|
|
(55,044)
|
|
Tax provision (benefit)
|
3,043
|
|
|
(3,839)
|
|
|
14,237
|
|
|
5,477
|
|
Net loss
|
(31,547)
|
|
|
(48,376)
|
|
|
(45,941)
|
|
|
(60,521)
|
|
Net loss attributable to noncontrolling interest
|
(18,952)
|
|
|
(18,548)
|
|
|
(201,986)
|
|
|
(50,566)
|
|
Net income (loss) attributable to Pattern Energy
|
$
|
(12,595)
|
|
|
$
|
(29,828)
|
|
|
$
|
156,045
|
|
|
$
|
(9,955)
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
97,460,492
|
|
|
87,370,979
|
|
|
97,464,012
|
|
|
87,146,465
|
|
Diluted
|
97,460,492
|
|
|
87,370,979
|
|
|
105,788,848
|
|
|
87,146,465
|
|
Earnings (loss) per share attributable to Pattern Energy
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.13)
|
|
|
$
|
(0.34)
|
|
|
$
|
1.60
|
|
|
$
|
(0.12)
|
|
Diluted
|
$
|
(0.13)
|
|
|
$
|
(0.34)
|
|
|
$
|
1.58
|
|
|
$
|
(0.12)
|
|
Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
(Unaudited)
|
|
Nine months ended
September 30,
|
|
2018
|
|
2017
|
Operating activities
|
|
|
|
Net loss
|
$
|
(45,941)
|
|
|
$
|
(60,521)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation, amortization and accretion
|
187,741
|
|
|
156,330
|
|
Impairment expense
|
6,563
|
|
|
—
|
|
Loss (gain) on derivatives
|
(3,236)
|
|
|
17,869
|
|
Stock-based compensation
|
3,517
|
|
|
4,085
|
|
Deferred taxes
|
13,910
|
|
|
9,133
|
|
Intraperiod tax allocation
|
—
|
|
|
(3,656)
|
|
Earnings in unconsolidated investments, net
|
(13,166)
|
|
|
(27,431)
|
|
Distributions from unconsolidated investments
|
42,838
|
|
|
43,093
|
|
Other reconciling items
|
1,802
|
|
|
(2,047)
|
|
Changes in operating assets and liabilities:
|
|
|
|
Counterparty collateral asset
|
23,925
|
|
|
10,105
|
|
Trade receivables
|
(47)
|
|
|
(2,861)
|
|
Prepaid expenses
|
(1,241)
|
|
|
(3,187)
|
|
Other current assets
|
13,749
|
|
|
(9,790)
|
|
Other assets (non-current)
|
(4,173)
|
|
|
2,457
|
|
Advanced lease revenue
|
33,792
|
|
|
—
|
|
Accounts payable and other accrued liabilities
|
(1,801)
|
|
|
16,389
|
|
Counterparty collateral liability
|
(23,925)
|
|
|
(10,105)
|
|
Accrued interest
|
(5,841)
|
|
|
(3,884)
|
|
Other current liabilities
|
(2,651)
|
|
|
6,650
|
|
Contingent liabilities, current
|
24,070
|
|
|
1,390
|
|
Long-term liabilities
|
7,366
|
|
|
14,569
|
|
Contingent liabilities
|
(27,013)
|
|
|
742
|
|
Derivatives
|
228
|
|
|
—
|
|
Net cash provided by operating activities
|
230,466
|
|
|
159,330
|
|
Investing activities
|
|
|
|
Cash paid for acquisitions, net of cash and restricted cash
acquired
|
(188,527)
|
|
|
(229,329)
|
|
Proceeds from sale of subsidiaries, net of cash and restricted cash
distributed
|
55,820
|
|
|
—
|
|
Payment for construction advances/deposits
|
(68,937)
|
|
|
—
|
|
Payment for construction in progress
|
(49,450)
|
|
|
—
|
|
Payment for property,plant and equipment
|
(10,212)
|
|
|
(44,295)
|
|
Distributions from unconsolidated investments
|
4,752
|
|
|
11,211
|
|
Other assets
|
(781)
|
|
|
7,607
|
|
Investment in Pattern Development 2.0
|
(86,254)
|
|
|
(60,000)
|
|
Net cash used in investing activities
|
(343,589)
|
|
|
(314,806)
|
|
Financing activities
|
|
|
|
Proceeds from public offerings, net of issuance costs
|
$
|
—
|
|
|
$
|
22,431
|
|
Dividends paid
|
(123,616)
|
|
|
(107,943)
|
|
Capital contributions - noncontrolling interest
|
3,383
|
|
|
—
|
|
Capital distributions - noncontrolling interest
|
(28,867)
|
|
|
(13,701)
|
|
Payment for financing fees
|
(7,478)
|
|
|
(7,763)
|
|
Proceeds from revolving credit facility
|
488,907
|
|
|
323,000
|
|
Repayment of revolving credit facility
|
(279,000)
|
|
|
(250,000)
|
|
Proceeds from long-term debt
|
164,673
|
|
|
404,395
|
|
Repayment of long-term debt
|
(53,274)
|
|
|
(192,109)
|
|
Repayment of note payable - related party
|
(909)
|
|
|
—
|
|
Repayment of short-term debt
|
(36,973)
|
|
|
—
|
|
Payment for termination of designated derivatives
|
—
|
|
|
(14,372)
|
|
Other financing activities
|
(2,771)
|
|
|
(3,712)
|
|
Net cash provided by financing activities
|
124,075
|
|
|
160,226
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted
cash
|
(3,020)
|
|
|
3,952
|
|
Net change in cash, cash equivalents and restricted cash
|
7,932
|
|
|
8,702
|
|
Cash, cash equivalents and restricted cash at beginning of
period
|
137,980
|
|
|
109,371
|
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
145,912
|
|
|
$
|
118,073
|
|
Supplemental disclosures
|
|
|
|
Cash payments for income taxes
|
$
|
490
|
|
|
$
|
335
|
|
Cash payments for interest expense
|
$
|
79,302
|
|
|
$
|
70,100
|
|
Schedule of non-cash activities
|
|
|
|
Change in major construction advances, construction in progress and
property, plant and equipment
|
$
|
225,898
|
|
|
$
|
619
|
|
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SOURCE Pattern Energy Group Inc.