AMPS
Altus Power, INC
NYSE
10-K/A: Altus Power Files Amended 10-K, Clarifies Disclosures and Refiles Certifications
Sentiment:
Annual Results Amendment
6 December 2024 4:44 PM
Altus Power has filed an amendment to its annual report on Form 10-K to clarify certain disclosures in its Management's Discussion and Analysis and to refile required certifications.
Worse than expected
The company's net income decreased from a profit of $52.2 million in 2022 to a loss of $26 million in 2023, indicating worse than expected results.
Delay expected
Project timelines have been pushed out by approximately 3 to 6 months due to supply chain challenges and permitting and interconnection delays.
Capital raise
The company has an at-the-market (ATM) program to offer and sell up to $200 million of shares of Class A common stock.
The company is seeking to raise additional capital from borrowings under existing debt facilities, third party tax equity investors, and cash from operations.
Summary
- Altus Power filed an amendment to its annual report on Form 10-K to clarify disclosures in the Management's Discussion and Analysis (MD&A) section, specifically regarding pipeline definitions and revenue reporting.
- The amendment also includes refiled certifications from the CEO and CFO as required by the Exchange Act Rule 13a-14(a).
- The company's pipeline of opportunities totaled over one gigawatt as of December 31, 2023, including development projects and operating acquisitions.
- Altus Power's installed solar capacity reached 896 MW by the end of 2023, a 91% increase from 470 MW in 2022.
- The company generated 780,943 MWh of electricity in 2023, a 71% increase from 455,630 MWh in 2022.
- Adjusted EBITDA for 2023 was $93.1 million, compared to $58.6 million in 2022, with an adjusted EBITDA margin of 60% and 58% respectively.
- Operating revenues increased by 53.4% to $155.2 million in 2023, driven by increased power sales and SREC revenue.
- The company experienced a net loss of $26 million in 2023, compared to a net income of $52.2 million in 2022, primarily due to increased operating expenses and interest expenses.
- Altus Power closed on the acquisition of approximately 84 MW of solar assets for $119.7 million on January 31, 2024.
- The company has various debt facilities, including a $503 million term loan with Blackstone and a $100 million term loan with Goldman Sachs and CPPIB.
Sentiment
Score: 5
Explanation: The document presents a mixed picture. While there is strong growth in capacity and revenue, the shift to a net loss and the presence of delays and risks temper the overall sentiment. The company is growing but faces challenges.
Positives
- Altus Power demonstrated significant growth in installed capacity and electricity generation.
- The company achieved a substantial increase in adjusted EBITDA and maintained a strong adjusted EBITDA margin.
- Operating revenues saw a significant increase, driven by higher power sales and SREC revenue.
- The company has a robust pipeline of development and acquisition opportunities.
- Altus Power secured additional financing through various debt facilities.
- The company has long-term power purchase agreements, providing stable revenue streams.
- The company has a strong partnership with CBRE, providing access to a large customer base.
Negatives
- The company reported a net loss of $26 million in 2023, a significant decrease from the net income of $52.2 million in 2022.
- Operating expenses and interest expenses increased substantially, contributing to the net loss.
- The company experienced delays in project timelines due to supply chain issues and permitting delays.
- The company is experiencing higher prices on imported solar modules.
- The company has a partial valuation allowance on its deferred state tax assets.
Risks
- The company's business is concentrated in certain markets, making it vulnerable to region-specific disruptions.
- Changes in government policies and incentives could negatively impact the company's growth and profitability.
- The company faces competition from utilities, developers, and other financial institutions.
- Supply chain issues, interconnection and permitting delays, and inflationary pressures could impact project timelines and costs.
- The company is dependent on external financing to grow its business.
- The company's tax equity funds and debt instruments impose restrictions on its ability to draw on financing commitments.
Future Outlook
The company intends to leverage its competitive strengths and market position to become a one-stop-shop for the clean energy transition, expanding into EV charging and energy storage, and partnering with Blackstone and CBRE to increase its customer base. The company expects its cost of operations to decrease over time as a percentage of revenue, offsetting efficiencies and economies of scale with inflationary increases of certain costs. The company also expects increased general and administrative expenses as it continues to grow its business but to decrease over time as a percentage of revenue.
Management Comments
- The company believes it has the in-house expertise to develop, build and provide operations and maintenance and customer servicing for its assets.
- Management and employees will continue to own a significant interest in the Company.
- The company believes it is in the beginning stages of a market opportunity driven by the broad shift away from traditional energy sources to renewable energy.
- The company anticipates that its ability to originate, source, develop and finance projects will ensure it can continue to grow and meet the needs of its customers.
Industry Context
The company operates in the rapidly growing renewable energy sector, specifically focusing on commercial and industrial solar projects. The industry is experiencing a shift towards decarbonization, creating significant opportunities for companies like Altus Power. The company's partnerships with Blackstone and CBRE provide a competitive advantage in accessing capital and customers.
Comparison to Industry Standards
- Altus Power's growth in installed capacity of 91% year-over-year is significant, indicating a strong market position compared to other solar developers.
- The company's adjusted EBITDA margin of 60% is competitive within the renewable energy sector, suggesting efficient operations.
- The company's focus on long-term power purchase agreements aligns with industry best practices for securing stable revenue streams.
- The company's pipeline of over one gigawatt demonstrates a strong potential for future growth, which is comparable to other large-scale solar developers.
- The company's reliance on external financing is typical for the industry, but its access to capital through Blackstone provides a competitive edge.
- Compared to companies like SunPower and First Solar, Altus Power is more focused on the C&I market segment, which has different dynamics and growth potential.
Stakeholder Impact
- Shareholders may be concerned about the net loss but encouraged by the revenue growth and pipeline.
- Employees may benefit from the company's growth and expansion.
- Customers will benefit from the company's expanded offerings and commitment to clean energy.
- Suppliers may see increased business opportunities with the company's growth.
- Creditors may be concerned about the net loss but reassured by the company's access to financing.
Next Steps
- The company will continue to execute its growth strategies, including expanding into EV charging and energy storage.
- Altus Power will focus on leveraging its partnerships with Blackstone and CBRE to increase its customer base.
- The company will seek to raise additional capital to finance its growth and operations.
- Altus Power will continue to monitor and manage its supply chain and project timelines.
Key Dates
- August 25, 2021: APA Finance, LLC entered into a $503 million term loan facility with Blackstone Insurance Solutions.
- December 19, 2022: APA Generation, LLC entered into a $200 million revolving credit facility with Citibank, N.A.
- December 23, 2022: APA Finance II, LLC entered into a $125.7 million term loan facility with KeyBank and Huntington.
- February 15, 2023: The company, through its subsidiaries, entered into a $204 million term loan facility (APAF III Term Loan) and closed the True Green II Acquisition.
- April 6, 2023: The company entered into a Controlled Equity Offering Sales Agreement for an at-the-market (ATM) program.
- June 15, 2023: The company amended the APAF III Term Loan to add $47 million of additional borrowings.
- July 21, 2023: The company amended the APAF III Term Loan to add $28 million of additional borrowings.
- November 10, 2023: APACF II, LLC entered into a $200 million credit agreement.
- December 20, 2023: The company amended the APAF III Term Loan to add $163 million of additional borrowings and closed the Caldera Acquisition.
- December 27, 2023: APA Generation Holdings, LLC entered into a $100 million term loan facility with Goldman Sachs and CPPIB.
- January 31, 2024: The company closed on the purchase of approximately 84 MW of solar assets for $119.7 million.
- December 6, 2024: Date of the amended 10-K filing.
Keywords
solar energy, renewable energy, power purchase agreements, energy storage, solar assets, EBITDA, megawatts, SREC, pipeline, acquisitions, financing
AMPS
Altus Power, INC
NYSE
Sector: Utilities
Filings with Classifications
Better than expected
17 March 2025 9:03 PM
Earnings Release
- The company's full year revenue increased by 26% compared to the previous year.
- The company's net loss decreased compared to the previous year.
- The company's Adjusted EBITDA increased compared to the previous year.
Worse than expected
17 March 2025 5:02 PM
Annual Results
- The company reported a net loss of $10.667 million for the year ended December 31, 2024, compared to a net loss of $25.973 million for the year ended December 31, 2023, and a net income of $52.167 million for the year ended December 31, 2022.
Better than expected
17 March 2025 5:00 PM
Earnings Release
- Full year revenue increased by 26% to $196.3 million.
- Adjusted EBITDA for the full year increased by 20% to $111.6 million.
Capital raise
13 March 2025 9:01 PM
Merger Announcement
- TPG Guarantor has committed to capitalize Parent in an aggregate amount of up to $920,371,158 (the Equity Financing) at or prior to the Closing.
- Parent has obtained financing commitments pursuant to a debt commitment letter, dated as of February 5, 2025 (the Debt Commitment Letter) for the purpose of (a) refinancing the APAGH Term Loan concurrently with the Closing of the Merger and the other Transactions (the Refinancing), (b) paying fees and expenses incurred in connection with the Refinancing and the transactions related thereto and (c) making distributions to indirectly fund a portion of the Merger Consideration (the Committed Debt Financing).
Better than expected
6 February 2025 7:14 AM
Merger Announcement
- The acquisition price represents a 66% premium to Altus Power's unaffected closing price on October 15, 2024.
Better than expected
6 February 2025 7:11 AM
Merger Announcement
- The acquisition price represents a 66% premium to Altus Power's unaffected closing price, indicating a better than expected outcome for shareholders.
Capital raise
6 December 2024 4:44 PM
Annual Results Amendment
- The company has an at-the-market (ATM) program to offer and sell up to $200 million of shares of Class A common stock.
- The company is seeking to raise additional capital from borrowings under existing debt facilities, third party tax equity investors, and cash from operations.
Delay expected
6 December 2024 4:44 PM
Annual Results Amendment
- Project timelines have been pushed out by approximately 3 to 6 months due to supply chain challenges and permitting and interconnection delays.
Worse than expected
6 December 2024 4:44 PM
Annual Results Amendment
- The company's net income decreased from a profit of $52.2 million in 2022 to a loss of $26 million in 2023, indicating worse than expected results.
Capital raise
12 November 2024 4:31 PM
Quarterly Report
- The company has an at-the-market offering (ATM) program to sell shares of Class A common stock.
- The company may offer and sell up to $200 million of shares of Class A common stock pursuant to the Sales Agreement.
Better than expected
12 November 2024 4:31 PM
Quarterly Report
- The company's revenue and net income significantly exceeded the previous year's results.
- The company's installed capacity and adjusted EBITDA also showed substantial improvement.
Better than expected
12 November 2024 4:30 PM
Quarterly Report
- The company's revenue and adjusted EBITDA exceeded the previous year's results for the same quarter.
- The company surpassed 1 GW in operating assets, a significant milestone.
- The company reaffirmed its full-year guidance, indicating confidence in continued growth.
Capital raise
15 October 2024 4:32 PM
Strategic Review Announcement
- The strategic review is aimed at optimizing access to capital for the company.
- The company is exploring alternative ownership structures, which could include a capital raise.
Better than expected
8 August 2024 4:15 PM
Quarterly Report
- The company's net income and operating revenues significantly increased compared to the same period last year, indicating better than expected financial performance.
- The company's installed solar capacity and megawatt hours generated also showed substantial growth, exceeding expectations.
Capital raise
8 August 2024 4:15 PM
Quarterly Report
- The company has an at-the-market (ATM) program to offer and sell shares of Class A common stock, with a remaining capacity of $200 million.
- The company relies on external financing to grow its business and may seek additional capital from borrowings under existing debt facilities, third-party tax equity investors, and cash from operations.
Worse than expected
8 August 2024 4:13 PM
Quarterly Report
- The company revised its full-year revenue and adjusted EBITDA guidance downwards, indicating that the results are worse than previously expected.
Better than expected
9 May 2024 8:48 PM
Quarterly Report
- The company's revenue, adjusted EBITDA, and electricity generation all increased significantly year-over-year, indicating better than expected performance.
Capital raise
9 May 2024 4:14 PM
Quarterly Report
- The company has a Controlled Equity Offering Sales Agreement (ATM program) with Cantor Fitzgerald & Co., Nomura Securities International, Inc., and Truist Securities, Inc. to offer and sell up to $200 million of shares of Class A common stock.
- The company may seek to raise additional capital from borrowings under existing debt facilities, third party tax equity investors, and cash from operations.
Better than expected
9 May 2024 4:14 PM
Quarterly Report
- The company's revenue growth of 38.4% exceeded expectations.
- The company's net income attributable to Altus Power, Inc. increased from $5.6 million to $7.5 million year-over-year.
- The company's installed solar capacity grew by 45% year-over-year, indicating strong growth.
Better than expected
9 May 2024 4:11 PM
Quarterly Report
- The company's revenue and adjusted EBITDA exceeded the previous year's results, indicating better than expected performance.
Worse than expected
14 March 2024 4:11 PM
Annual Results
- The company reported a net loss of $25.9 million, which is worse than the net income of $52.2 million reported in 2022.
Delay expected
14 March 2024 4:11 PM
Annual Results
- The report mentions that historical timelines for projects from agreed terms to commercial operation have been pushed out by approximately 3 to 6 months due to supply chain challenges and permitting and interconnection delays.
Capital raise
14 March 2024 4:11 PM
Annual Results
- The company may need to raise additional capital in the future to further scale its business and expand to additional markets.
- The company may raise additional funds through the issuance of equity, equity-related or debt securities, through tax equity partnerships, or through obtaining credit from government or financial institutions.
Better than expected
14 March 2024 4:10 PM
Annual Results
- The company's revenue and adjusted EBITDA growth significantly exceeded the previous year's results.
- The company's portfolio size and customer base grew substantially, indicating strong market demand and execution.
- The company's 2024 guidance suggests continued growth, indicating positive future prospects.
Capital raise
31 January 2024 4:30 PM
Merger Announcement
- Altus Power expects to expand its funding facility with Blackstone in the near term to secure long-term financing.
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