AMPS
Altus Power, INC
NYSE
8-K: Altus Power Reports Record 2023 Revenue and Adjusted EBITDA Growth, Eyes Continued Expansion in 2024
Sentiment:
Annual Results
14 March 2024 4:10 PM
Altus Power announced a 53% increase in full-year 2023 revenue and a 59% increase in adjusted EBITDA, alongside significant portfolio growth and customer additions.
Better than expected
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.
Summary
- Altus Power reported full-year 2023 revenues of $155.2 million, a 53% increase compared to 2022.
- The company's adjusted EBITDA for 2023 reached $93.1 million, a 59% increase year-over-year.
- Altus Power experienced a GAAP net loss of $26.0 million for the full year 2023, compared to a net income of $52.2 million in 2022, primarily due to non-cash remeasurement items.
- Net cash provided by operating activities was $79.4 million, a 125% increase over 2022.
- The company added approximately 150 enterprise customers, bringing the total to over 450.
- Altus Power's portfolio size increased by 91% to 896 MW during 2023.
- Approximately 74 MW of new-build assets were completed, and 352 MW of assets in operation were added.
- The company is approaching a 1 gigawatt portfolio with the closing of an 84 MW acquisition from Vitol in January 2024.
- Altus Power expects 2024 operating revenues to be in the range of $200-222 million and adjusted EBITDA in the range of $115-135 million.
- The company's year-end cash balance was $219 million, supporting its 2024 financing plan with no expected equity needs.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook with strong revenue and EBITDA growth, significant portfolio expansion, and a solid financial position. The net loss is a concern, but it is largely attributed to non-cash items. The company's guidance for 2024 is also very positive.
Positives
- Altus Power achieved significant revenue growth of 53% year-over-year.
- The company's adjusted EBITDA increased by 59%, demonstrating improved profitability.
- Net cash from operating activities saw a substantial increase of 125%, indicating strong cash generation.
- The company significantly expanded its portfolio size by 91%, showcasing rapid asset growth.
- Altus Power added a large number of new enterprise customers, expanding its customer base.
- The company completed a significant amount of new build assets and added a large amount of operating assets.
- The company has a strong cash balance of $219 million, providing financial stability.
- The company is the largest owner of commercial scale solar assets in the US, demonstrating market leadership.
- The company has provided strong guidance for 2024, indicating continued growth.
- The company has a large pipeline of projects, indicating future growth potential.
Negatives
- Altus Power reported a GAAP net loss of $26.0 million for the full year 2023, compared to a net income of $52.2 million in 2022.
- The fourth quarter of 2023 saw a GAAP net loss of $40.0 million, compared to a net income of $67.1 million in the same period of 2022.
- The net loss was primarily driven by non-cash losses from the remeasurement of alignment shares.
- General and administrative expenses increased, partially offsetting revenue gains.
Risks
- The company's future results could be affected by the ability to integrate acquisitions and realize their benefits.
- The company's performance is subject to the ability to retain customers and maintain relationships with partners.
- The company faces risks related to litigation and regulatory actions.
- Changes in applicable laws or regulations could adversely affect the company.
- The company is subject to economic, business, regulatory, and competitive factors that could impact performance.
- The company's forward-looking statements are based on current estimations and are subject to risks and uncertainties.
Future Outlook
Altus Power expects continued growth in 2024, with operating revenues projected to be between $200-222 million and adjusted EBITDA between $115-135 million. The company anticipates no equity needs for 2024, supported by its strong cash balance and access to financing.
Management Comments
- Lars Norell, co-CEO of Altus Power, stated that 2023 was a record year with revenue, adjusted EBITDA, customer additions, and asset growth reaching new highs.
- Gregg Felton, Co-CEO of Altus Power, highlighted the company's category leadership and ongoing platform scaling to support growth.
- Gregg Felton also mentioned the strategic acquisition from Vitol to bolster operational assets and a rich pipeline of new build opportunities.
Industry Context
Altus Power's results reflect a strong position in the growing commercial-scale solar market. The company's expansion and financial performance indicate a positive trend in the renewable energy sector, particularly in the commercial segment. The company's leadership position is supported by its large portfolio and customer base.
Comparison to Industry Standards
- Altus Power's 53% revenue growth and 59% adjusted EBITDA growth significantly outpace the average growth rates in the broader energy sector, which typically sees single-digit growth.
- Compared to companies like SunPower (SPWR) and First Solar (FSLR), which focus more on residential and utility-scale solar respectively, Altus Power's focus on commercial-scale solar provides a unique market position.
- The company's adjusted EBITDA margin of 60% is competitive with other leading renewable energy companies, indicating efficient operations.
- The company's 91% portfolio growth is a strong indicator of its ability to scale rapidly, which is a key differentiator in the competitive solar market.
- The company's ability to secure significant financing and maintain a strong cash balance is a positive sign compared to other companies that may struggle with capital constraints.
Stakeholder Impact
- Shareholders will likely view the strong revenue and EBITDA growth positively.
- Employees may benefit from the company's growth and expansion.
- Customers will benefit from the company's expanded portfolio and services.
- Suppliers and partners will benefit from the company's increased activity and growth.
- Creditors will be reassured by the company's strong financial position and cash flow.
Next Steps
- The company will continue to execute its growth strategy, focusing on customer acquisition and asset expansion.
- Altus Power will focus on integrating recent acquisitions and realizing their benefits.
- The company will continue to leverage its strong balance sheet and access to capital to support its growth plans.
- The company will continue to develop its pipeline of new build opportunities.
Key Dates
- March 7, 2024: Wood Mackenzie's US PV Leaderboard ranking date, where Altus Power was ranked as the largest owner of commercial scale solar assets.
- March 14, 2024: Date of the earnings release and conference call for the fourth quarter and full year 2023 financial results, and the filing of the 2023 Annual Report on Form 10-K.
Keywords
solar power, renewable energy, adjusted EBITDA, revenue growth, commercial solar, asset acquisition, portfolio expansion, financial results, clean energy, megawatts
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.
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
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.
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.
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.
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.
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.
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.