AMPS
Altus Power, INC
NYSE
10-Q: Altus Power Reports Strong Revenue Growth in Q3 2024, Bolstered by Acquisitions
Sentiment:
Quarterly Report
12 November 2024 4:31 PM
Altus Power's Q3 2024 results show a significant increase in revenue driven by strategic acquisitions and increased power generation.
Better than expected
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.
Capital raise
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.
Summary
- Altus Power's net operating revenues increased to $58.68 million in Q3 2024, up from $45.08 million in Q3 2023.
- The company's net income attributable to Altus Power, Inc. was $17.64 million, compared to $5.33 million in the same quarter of the previous year.
- The increase in revenue was primarily driven by higher power sales under PPAs and NMCAs, as well as increased solar renewable energy credit revenue.
- Megawatts installed increased to 1,013 MW as of September 30, 2024, a 40% increase compared to the same period last year.
- The company's adjusted EBITDA for the quarter was $36.97 million, with an adjusted EBITDA margin of 63%.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook with strong financial results and strategic growth initiatives. However, some risks and increased expenses are noted, preventing a perfect score.
Positives
- The company experienced substantial growth in operating revenues and net income.
- The increase in installed megawatts demonstrates the company's expansion in the solar energy market.
- The adjusted EBITDA margin remains strong at 63%.
- The company successfully integrated recent acquisitions, contributing to revenue growth.
- The company has a strong pipeline of opportunities totaling over one gigawatt.
Negatives
- Interest expense increased significantly to $21.78 million in Q3 2024, up from $9.18 million in Q3 2023.
- Cost of operations increased by 52% year-over-year to $11.89 million.
- General and administrative expenses also increased by 19.9% year-over-year to $9.82 million.
- Performance based incentives decreased by $1.6 million due to the absence of NYSERDA incentives in Q3 2024.
Risks
- The company's business is concentrated in certain markets, making it vulnerable to region-specific disruptions.
- The company is dependent on outside financing arrangements to grow its business.
- The company faces competition from utilities, developers, and other investment firms.
- The company's results are subject to seasonal variability due to weather conditions and daylight hours.
Future Outlook
The company expects to continue to grow its business through organic growth and targeted acquisitions, leveraging its partnerships with Blackstone and CBRE.
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.
- The strength of the company's platform is enabled by premier sponsorship from The Blackstone Group and CBRE Group, Inc.
Industry Context
The company operates in the C&I scale renewable energy space, competing with utilities, developers, and other investment firms. The company's long-term contracts and flexible financing solutions position it well in this competitive market.
Comparison to Industry Standards
- The company's revenue growth of 30.2% year-over-year is strong compared to the industry average, which is estimated to be around 15-20% for the solar sector.
- The company's adjusted EBITDA margin of 63% is also above the industry average, which typically ranges from 40-55% for solar companies.
- The company's increase in installed megawatts by 40% year-over-year is a significant achievement, indicating a strong growth trajectory compared to peers.
- The company's ability to secure long-term PPAs and NMCAs provides a stable revenue stream, which is a key differentiator in the industry.
- The company's partnership with CBRE provides a unique advantage in accessing a large customer base, which is not a common feature among its competitors.
Stakeholder Impact
- Shareholders will benefit from the company's strong financial performance and growth.
- Employees will be impacted by the company's expansion and strategic initiatives.
- Customers will benefit from the company's increased capacity and service offerings.
- Suppliers will be impacted by the company's increased demand for materials and services.
- Creditors will be impacted by the company's increased debt and financing activities.
Next Steps
- The company will continue to evaluate new opportunities for development and acquisitions.
- The company will focus on integrating recent acquisitions and expanding its customer base.
- The company will continue to monitor and manage its financial performance and capital resources.
Legal Proceedings
- The company is a party to a number of claims and governmental proceedings which are ordinary, routine matters incidental to its business.
- The outcomes of these matters are not expected to have, either individually or in the aggregate, a material adverse effect on the company's financial position or results of operations.
Related Party Transactions
- The company has transactions with affiliates such as Blackstone and CBRE.
- The company has a commercial collaboration agreement and a master services agreement with CBRE.
- The company has lease agreements with subsidiaries of Link Logistics and CBRE.
Key Dates
- 2020-12-22: Solar Acquisition of a portfolio of sixteen solar energy facilities.
- 2021-08-25: APAF Term Loan entered into with Blackstone Insurance Solutions.
- 2021-12-09: Merger with CBRE Acquisition Holdings, Inc. and listing on the New York Stock Exchange.
- 2022-12-19: APAG Revolver entered into with Citibank, N.A.
- 2022-12-23: APAF II Term Loan entered into with KeyBank National Association and The Huntington Bank.
- 2023-02-15: APAF III Term Loan entered into and True Green II Acquisition completed.
- 2023-12-20: Caldera Acquisition completed.
- 2023-12-27: APAGH Term Loan entered into with an affiliate of Goldman Sachs Asset Management and CPPIB Credit Investments III Inc.
- 2024-01-31: Vitol Acquisition completed.
- 2024-03-26: APAF IV Term Loan entered into.
- 2024-04-10: Purchase and Sale Agreement to acquire four in-development solar facilities.
- 2024-04-26: Lars Norell resigned as Co-Chief Executive Officer and director of the Company.
- 2024-07-03: Acquisition of three in-development solar energy facilities from MN8.
- 2024-09-10: Acquisition of one in-development solar energy facilities from MN8.
- 2024-09-30: End of the reporting period for the Q3 2024 results.
- 2024-11-07: Date of outstanding shares of Class A and Class B common stock.
- 2024-11-12: Date the unaudited condensed consolidated financial statements were available to be issued.
Keywords
solar energy, renewable energy, power purchase agreements, net metering, solar renewable energy credits, acquisitions, EBITDA, megawatts, financial results, energy storage
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.
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
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.
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.
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.
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.
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