AMPS
Altus Power, INC
NYSE
10-K: Altus Power Reports 2023 Financial Results, Cites Significant Growth and Strategic Acquisitions
Sentiment:
Annual Results
14 March 2024 4:11 PM
Altus Power's 2023 annual report highlights substantial growth in installed solar capacity and revenue, driven by organic expansion and strategic acquisitions.
Worse than expected
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
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
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.
Summary
- Altus Power's 2023 annual report details significant growth, with installed solar capacity reaching 896 MW, a 91% increase from 2022.
- The company's revenue increased by 53.4% to $155.2 million, driven by growth in power purchase agreements, net metering credits, and renewable energy credit sales.
- Altus Power generated 780,943 MWh of electricity in 2023, a 71% increase compared to the previous year.
- The company operates in 25 states, providing clean electricity equivalent to the consumption of over 100,000 homes and displacing over 550,000 tons of CO2 emissions annually.
- The report highlights strategic acquisitions, including the Vitol acquisition of 84 MW of solar assets for $119.7 million, and the Caldera acquisition of 121 MW of solar assets for $121.7 million.
- Altus Power's pipeline of opportunities exceeds one gigawatt, comprising both operating acquisitions and development projects.
- The company's adjusted EBITDA increased to $93.1 million in 2023, compared to $58.6 million in 2022.
Sentiment
Score: 6
Explanation: The document presents a mixed picture. While there is strong growth in revenue and installed capacity, the net loss and identified material weaknesses in internal controls temper the positive outlook. The company's strategic acquisitions and partnerships are promising, but the risks associated with the business and the broader industry are also significant.
Positives
- The company experienced significant growth in installed solar capacity and electricity generation.
- Altus Power's revenue increased substantially, driven by multiple revenue streams.
- The company's adjusted EBITDA showed strong growth, indicating improved profitability.
- Strategic acquisitions have expanded the company's portfolio and market presence.
- The company has a robust pipeline of future projects, suggesting continued growth potential.
- Altus Power is contributing to environmental sustainability by displacing a significant amount of CO2 emissions.
Negatives
- The company reported a net loss of $25.9 million for 2023.
- Operating expenses increased significantly due to the expansion of operations and acquisitions.
- The company identified material weaknesses in its internal control over financial reporting.
- The company's stock price is volatile, which could cause the value of your investment to decline.
- The company is subject to risks associated with construction, such as cost overruns and delays.
Risks
- The company's growth strategy depends on the widespread adoption of solar power technology.
- Altus Power faces intense competition from other solar and energy companies.
- A reduction in the retail price of traditional utility-generated electricity could harm the company's business.
- The company is subject to supply chain risks, including shortages, delays, and price changes.
- The operation and maintenance of the company's facilities are subject to various operational risks.
- The company's business is concentrated in certain markets, making it vulnerable to region-specific disruptions.
- The company may not be successful in identifying or making acquisitions in the future.
- The company is subject to extensive regulation, which could adversely affect its business.
- Changes in government incentives or policies supporting solar energy could negatively impact the company.
- The company is subject to cybersecurity risks, which could disrupt operations and compromise data.
- The company has identified material weaknesses in its internal control over financial reporting.
Future Outlook
The company expects continued growth through strategic acquisitions, expansion of its product offerings, and leveraging its partnerships with Blackstone and CBRE. The company also expects to continue to experience higher prices on imported solar modules.
Management Comments
- 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 intends to leverage its competitive strengths and market position to become customers one-stop-shop for the clean energy transition.
- The company expects to grow its market share because of its development capability, long-term revenue contracts, flexible financing solutions, leadership, and CBRE partnership.
Industry Context
The report reflects the broader industry trend of increasing demand for renewable energy and the transition towards decarbonization. Altus Power is positioning itself to capitalize on this trend through strategic partnerships and acquisitions, particularly in the commercial and industrial sector.
Comparison to Industry Standards
- Altus Power's growth in installed capacity and revenue is consistent with the expansion seen in the broader solar industry.
- The company's focus on the C&I market aligns with the trend of increasing corporate adoption of renewable energy.
- The company's adjusted EBITDA margin of 60% is competitive with other players in the renewable energy sector.
- The company's strategic partnerships with Blackstone and CBRE are unique and provide a competitive advantage compared to other solar developers.
- The company's long-term power purchase agreements are similar to those used by other solar companies, providing stable revenue streams.
Stakeholder Impact
- Shareholders may be concerned about the net loss and material weaknesses in internal controls.
- Employees may benefit from the company's growth and expansion.
- Customers will benefit from the company's clean energy solutions and cost savings.
- Suppliers may benefit from the company's increased demand for solar equipment.
- Creditors may be concerned about the company's debt levels and financial performance.
Next Steps
- The company plans to continue to execute its growth strategies, including expanding its EV charging and energy storage offerings.
- Altus Power will continue to leverage its partnerships with Blackstone and CBRE to access new customer relationships.
- The company will continue to evaluate and pursue strategic acquisition opportunities.
- Altus Power plans to report how it oversees and manages ESG factors in an annual sustainability report.
Related Party Transactions
- The company has ongoing transactions with Blackstone and CBRE, including debt facilities and commercial collaboration agreements.
Key Dates
- October 13, 2020: Altus Power, Inc. was formed under the laws of the State of Delaware.
- July 12, 2021: Altus Power entered into a business combination agreement with CBRE Acquisition Holdings, Inc.
- August 25, 2021: APA Finance, LLC entered into a $503 million term loan facility with Blackstone Insurance Solutions.
- December 9, 2021: CBRE Acquisition Holdings, Inc. consummated the business combination with Altus Power, Inc.
- October 14, 2022: Altus Power's Public Warrants stopped trading on the NYSE and were delisted.
- December 23, 2022: APA Finance II, LLC entered into a $125.7 million term loan facility.
- February 15, 2023: Altus Power, through its subsidiaries, entered into a $204 million term loan facility and closed on the True Green II Acquisition.
- April 6, 2023: Altus Power entered into a Controlled Equity Offering Sales Agreement.
- June 15, 2023: The Company repaid all outstanding term loans of $15.8 million and terminated the Construction to Term Loan Facility.
- July 21, 2023: The Company amended the APAF III Term Loan to add $28.0 million of additional borrowings.
- December 20, 2023: The Company amended the APAF III Term Loan to add $163.0 million of additional borrowings and closed on the Caldera Acquisition.
- December 27, 2023: APA Generation Holdings, LLC entered into a $100 million credit agreement.
- January 31, 2024: Altus Power closed on the Vitol acquisition of 84 MW of solar assets.
Keywords
solar power, renewable energy, solar energy systems, power purchase agreements, net metering, renewable energy credits, energy storage, strategic acquisitions, financial results, EBITDA
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.
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.
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.
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.
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.
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 4:11 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.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.