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Pattern Energy Reports Second Quarter 2017 Financial Results

By Pattern Energy Operations LP
August 8th, 2017
PR Newswire

San Francisco, Aug. 8, 2017 /CNW/ -- Pattern Energy Group Inc. (the "Company" or "Pattern Energy") (NASDAQ & TSX: PEGI) today announced its financial results for the 2017 second quarter.

pattern_logo.jpg

Highlights
(Comparisons made between fiscal Q2 2017 and fiscal Q2 2016 results, unless otherwise noted)

  • Proportional gigawatt hours ("GWh") sold of 2,112 GWh, up 23%
  • Net cash provided by operating activities of $113.4 million, up 105%
  • Cash available for distribution ("CAFD") of $49.2 million, up 39% and on track to meet full year guidance(1)
  • Net loss of $14.7 million, an improvement of 6%
  • Adjusted EBITDA of $91.9 million, up 17%
  • Revenue of $107.8 million, up 15%
  • Declared a third quarter dividend of $0.4200 per Class A common share or $1.68 on an annualized basis, subsequent to the end of the period, representing a 0.5% increase over the previous quarter's dividend
  • Announced increased opportunities for growth and improved alignment with Pattern Development(2) as it secured up to $1 billion in long-term funding commitments to expand its development business to 10 gigawatts ("GW"), including a $60 million minority investment made by Pattern Energy for an approximate 20% interest in Pattern Development 2.0, ensuring the Company access to an exclusive project pipeline and enhancing alignment with the development business
  • Announced a strategic co-investment relationship with the Public Sector Pension Investment Board ("PSP Investments") in which PSP Investments will co-invest up to $500 million in projects acquired by Pattern Energy under the Company's right-of-first-offer ("ROFO") with Pattern Development
  • Announced Pattern Energy will acquire the Meikle and Mont Sainte-Marguerite projects with PSP Investments, and sell a partial interest in the Panhandle 2 Wind project to PSP Investments

"Our high-quality fleet continues to perform well which allowed us to deliver a strong quarter with CAFD in line with our expectation and on track for our 2017 CAFD guidance(1)," said Mike Garland, President and CEO of Pattern Energy. "We have designed the business and deployed a strategy to produce and grow stable, sustainable CAFD. Our announcements in June support and expand on this strategy. The investment in development has increased our opportunity set and improved our alignment with our development affiliate. This relationship has been validated by the participation of PSP Investments, a pension investment manager that is a recognized leader in renewable energy investments. The net result of these major initiatives is that Pattern Energy is stronger today, with access to a larger pipeline, higher returns through our direct involvement in the development business, improved alignment with both the development business and our new shareholder, PSP Investments, through the co-investment relationship, as well as access to capital to fund growth without relying solely on debt or equity."

(1) The forward looking measure of 2017 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 2017 Quarterly Report on Form 10-Q for the period ended June 30, 2017.

(2) In December 2016, Pattern Energy Group LP ("Pattern Development 1.0") formed Pattern Energy Group 2 LP ("Pattern Development 2.0"), and together such companies are referred to as "Pattern Development".

Financial and Operating Results

Pattern Energy sold 2,111,627 megawatt hours ("MWh") of electricity on a proportional basis in the second quarter of 2017 compared to 1,715,286 MWh sold in the same period last year. Pattern Energy sold 4,135,510 MWh of electricity on a proportional basis for the six months ended June 30, 2017 (YTD 2017) compared to 3,515,871 MWh sold in the same period last year. The 23% increase in the quarterly period was primarily attributable to favorable wind conditions in the current period compared to the same period in 2016, the acquisition of Broadview in the second quarter 2017 and the acquisition of Armow in the fourth quarter of 2016. Overall, wind and production were below the Company's expectation for the second quarter compared to its long-term forecast.

Net cash provided by operating activities was $113.4 million for the second quarter of 2017 compared to $55.3 million for the same period last year. Net cash provided by operating activities was $157.2 million for YTD 2017 compared to $70.0 million for the same period last year. The $58.2 million improvement in the quarterly period was primarily due to higher revenues of $9.7 million (excluding unrealized loss on energy derivative and amortization of PPAs) and increases of $7.4 million in cash receipts due to timing of collections from trade receivables, $14.8 million from distributions from unconsolidated investments, $26.3 million from increased payables and accrued liabilities primarily due to the timing of payments, as well as, $5.2 million from higher accrued interest associated primarily with the timing of payments on its unsecured senior notes due in 2024. These increases to net cash from operating activities were partially offset by increases of $4.6 million in transmission cost and $4.2 million in operating expenses.

Cash available for distribution was $49.2 million for the second quarter of 2017 compared to $35.5 million for the same period last year. Cash available for distribution was $94.4 million for YTD 2017 compared to $76.5 million for the same period in the prior year. The $13.7 million increase, or approximately 39%, in the quarterly period was primarily due to a $9.7 million increase in revenues (excluding unrealized loss on energy derivative and amortization of PPAs), an $8.3 million network upgrade reimbursement primarily related to the Broadview project, and a $7.1 million increase in total distributions from unconsolidated investments. These increases were partially offset by increases of $4.2 million in operating expense, $4.6 million in transmission cost and $2.2 million in distributions to noncontrolling interests.

Net loss was $14.7 million in the second quarter of 2017, compared to a net loss of $15.6 million for the same period last year. Net loss was $12.1 million for YTD 2017 compared to $44.7 million in the same period last year. The 6% improvement in the quarterly period was primarily attributable to an increase in revenues of $14.3 million and a decrease of $3.5 million in other expense. These contributions were partially offset by increased cost of revenue of $9.6 million primarily due to Broadview which was acquired during the second quarter 2017, and increased operating expenses of $4.2 million.

Adjusted EBITDA was $91.9 million for the second quarter of 2017 compared to $78.6 million for the same period last year. Adjusted EBITDA was $190.1 million for YTD 2017 compared to $156.7 million for the same period last year. The 17% increase in the quarterly period was primarily due to a $9.7 million increase in revenues (excluding unrealized loss on energy derivative and amortization of PPAs) and an $11.3 million increase in our proportionate share of Adjusted EBITDA from unconsolidated investments. These increases were partially offset by increases of $4.6 million in transmission cost and $4.2 million in operating expenses.

2017 Financial Guidance

Pattern Energy is re-confirming its targeted annual cash available for distribution for 2017 within a range of $140 million to $165 million, representing an increase of 15% at the midpoint of the range, compared to cash available for distribution in 2016. As noted above, forward-looking cash available for distribution 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 for the reasons stated above.

Quarterly Dividend

Pattern Energy declared an increased dividend for the third quarter 2017, payable on October 31, 2017, to holders of record on September 29, 2017 in the amount of $0.4200 per Class A common share, which represents $1.68 on an annualized basis. This is a 0.5% increase from the second quarter 2017 dividend of $0.4180.

Project Acquisitions and Divestment

Pattern Energy will acquire interests in the Meikle and Mont Sainte-Marguerite projects and will sell a partial interest in the Panhandle 2 project. These three projects are also the first co-investment projects with PSP Investments.

Meikle

Meikle will be jointly owned by Pattern Energy and PSP Investments. The 179 MW facility, located in the Peace River Regional District of British Columbia, commenced commercial operations in the first quarter of 2017 and operates under a 25-year power purchase agreement with BC Hydro, which has a AAA/Aaa credit rating.

Pattern Energy will acquire its 51% interest in Meikle for a total investment of approximately $65 million(1), which represents a CAFD multiple of 10x of the project's five-year average CAFD(2). The acquisition will be funded with available liquidity and is expected to close in the coming days, subject to customary closing conditions.

Mont Sainte-Marguerite

Mont Sainte-Marguerite will be jointly owned by Pattern Energy and PSP Investments. The 143 MW facility, located in the Chaudière-Appalaches region south of Québec City, is expected to commence commercial operations in late 2017 and operate under a 25-year power purchase agreement with Hydro-Québec, which has a A+/Aa2 credit rating.

Pattern Energy will acquire its 51% interest in Mont Sainte-Marguerite for a total investment of approximately $40 million(1), which represents a CAFD multiple of 10x of the five-year average CAFD(2). The acquisition is expected to close within 160 days, following the commencement of commercial operations and subject to customary closing conditions. It will be funded at the time of closing using available liquidity.

Panhandle 2

Pattern Energy has agreed to sell 49% of the Class B interests in its Panhandle 2 project to PSP Investments. The 182 MW facility,  located in Carson County, Texas, commenced commercial operations in the fourth quarter of 2014 and approximately 80% of its production is under a contracted hedge with Morgan Stanley.

Pattern Energy will receive $59 million from PSP Investments in return for 49% of the Class B ownership in the project, which represents a cash gain of 20% over the Company's net investment basis and implies a CAFD multiple(2) of more than 12x on the five-year average CAFD(2). The acquisition is, subject to customary closing conditions, expected to close within 90 days.

(1)

Based on a CAD to USD exchange rate of $1.32

(2)

This forward looking measure of five-year average annual purchase price multiple of CAFD contribution from the Meikle, Mont Sainte-Marguerite and Panhandle 2 projects 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 on page 60 of Pattern Energy's 2016 Annual Report on Form 10-K.

Acquisition Pipeline

Pattern Development has expanded its pipeline to 10 GW of development projects, all of which are subject to Pattern Energy's ROFO rights.

Pattern Energy has a ROFO on a pipeline of acquisition opportunities from Pattern Development. The identified ROFO list stands at 1,016 MW of total owned capacity. This list of identified ROFO projects represents a portion of the Pattern Development's 10 GW pipeline of development projects, all of which are subject to Pattern Energy's ROFO. Since its IPO, Pattern Energy has purchased, or agreed to purchase, 1,358 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 expects to acquire from Pattern Development in connection with Pattern Energy's project 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

                       

Otsuki Wind

 

Operational

 

Japan

 

n/a

 

2006

 

PPA

 

12

 

12

Kanagi Solar

 

Operational

 

Japan

 

2014

 

2016

 

PPA

 

10

 

6

Futtsu Solar

 

Operational

 

Japan

 

2014

 

2016

 

PPA

 

31

 

20

Conejo Solar(5)

 

Operational

 

Chile

 

2015

 

2016

 

PPA

 

104

 

104

El Cabo

 

In construction

 

New Mexico

 

2016

 

2017

 

PPA

 

298

 

125

Belle River

 

In construction

 

Ontario

 

2016

 

2017

 

PPA

 

100

 

43

Ohorayama

 

In construction

 

Japan

 

2016

 

2018

 

PPA

 

33

 

33

North Kent

 

In construction

 

Ontario

 

2017

 

2018

 

PPA

 

100

 

35

Henvey Inlet

 

Late stage development

 

Ontario

 

2017

 

2019

 

PPA

 

300

 

150

Tsugaru

 

Late stage development

 

Japan

 

2017

 

2020

 

PPA

 

122

 

103

Sumita

 

Late stage development

 

Japan

 

2019

 

2021

 

PPA

 

100

 

62

Pattern Development 2.0 Projects

                       

Stillwater Big Sky

 

Late stage development

 

Montana

 

2017

 

2018

 

PPA

 

79

 

67

Crazy Mountain

 

Late stage development

 

Montana

 

2017

 

2019

 

PPA

 

80

 

68

Grady

 

Late stage development

 

New Mexico

 

2018

 

2019

 

PPA

 

220

 

188

                       

1,589

 

1,016

(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.

   

(5)

From time to time, we conduct strategic reviews of our markets. We have been conducting a strategic review of the market, growth, and opportunities in Chile. In the event we believe we can utilize funds that have already been invested in Chile or funds that might otherwise be invested in Chile in a more productive manner elsewhere that could generate a higher return on investment, we may decide to exit Chile for other opportunities with greater potential. In addition, Pattern Development 1.0 is also concurrently exploring strategic alternatives for its assets in Chile.

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 income (loss) to Adjusted EBITDA, respectively, for the periods presented (in thousands):

 

Three months ended June 30,

 

Six months ended June 30,

 

2017

 

2016

 

2017

 

2016

Net cash provided by operating activities

$

113,431

   

$

55,255

   

$

157,183

   

$

69,976

 

Changes in operating assets and liabilities

(61,379)

   

(13,654)

   

(47,956)

   

5,313

 

Network upgrade reimbursement

8,273

       

8,590

   

 

Release of restricted cash to fund project and general and administrative costs

   

   

   

590

 

Operations and maintenance capital expenditures

(117)

   

(516)

   

(263)

   

(746)

 

Distributions from unconsolidated investments

4,185

   

11,960

   

8,390

   

31,774

 

Other

4,808

   

52

   

1,376

   

65

 

Less:

             

Distributions to noncontrolling interests

(6,517)

   

(4,270)

   

(9,164)

   

(8,187)

 

Principal payments paid from operating cash flows

(13,445)

   

(13,319)

   

(23,771)

   

(22,262)

 

Cash available for distribution

$

49,239

   

$

35,508

   

$

94,385

   

$

76,523

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2017

 

2016

 

2017

 

2016

Net loss

$

(14,684)

   

$

(15,646)

   

$

(12,145)

   

$

(44,694)

 

Plus:

             

Interest expense, net of interest income

24,238

   

21,008

   

46,299

   

41,323

 

Tax provision

4,541

   

1,429

   

9,316

   

2,727

 

Depreciation, amortization and accretion

52,752

   

45,835

   

99,979

   

91,219

 

EBITDA

66,847

   

52,626

   

143,449

   

90,575

 

Unrealized loss on energy derivative (1)

4,663

   

9,327

   

7,021

   

14,152

 

Loss on undesignated derivatives, net

4,751

   

5,879

   

5,399

   

19,510

 

Net (gain) loss on transactions

807

   

72

   

1,119

   

39

 

Adjustments from unconsolidated investments

   

(9,422)

   

   

(11,134)

 

Plus, proportionate share from unconsolidated investments:

             

Interest expense, net of interest income

9,498

   

7,925

   

18,838

   

15,144

 

Depreciation, amortization and accretion

8,575

   

6,671

   

17,029

   

12,964

 

(Gain) loss on undesignated derivatives, net

(3,272)

   

5,555

   

(2,788)

   

15,471

 

Adjusted EBITDA

$

91,869

   

$

78,633

   

$

190,067

   

$

156,721

 
   

(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, today, August 8, 2017. 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 58626636. The replay recording will be available until 11:59 p.m. Eastern Time, August 29, 2017.

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 20 wind power facilities, including the two projects it has agreed to acquire, with a total owned interest of 2,736 MW in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy's wind 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 2017 cash available for distribution target, the five year average annual CAFD generated by Meikle, Mont-Sainte Marguerite and Panhandle 2, the ability for the company's initiatives to make the Company stronger with access to a larger pipeline, potentially higher returns, and access to capital without relying solely on debt or equity, investment in Pattern Development 2.0 to ensure the Company access to an exclusive project pipeline and enhance alignment with the development business, the ability to consummate the acquisitions of Meikle and Mont Sainte-Marguerite and sell a partial interest in Panhandle 2, the outlook for renewable energy, and the ability of the Company's business model to deliver sustainable and growing returns for the Company's shareholders. 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.

Contacts:

Media Relations

Matt Dallas

917-363-1333

matt.dallas(at)patternenergy.com

 

Investor Relations

Ross Marshall

416-526-1563

ross.marshall(at)loderockadvisors.com

 

 

Pattern Energy Group Inc.

Consolidated Balance Sheets

(In thousands of U.S. Dollars, except share data)

(Unaudited)

 

June 30,

 

December 31,

 

2017

 

2016

Assets

     

Current assets:

     

Cash and cash equivalents

$

162,600

   

$

83,932

 

Restricted cash

13,137

   

11,793

 

Funds deposited by counterparty

34,436

   

43,635

 

Trade receivables

48,331

   

37,510

 

Derivative assets, current

18,680

   

17,578

 

Prepaid expenses

11,787

   

13,803

 

Deferred financing costs, current, net of accumulated amortization of $10,606 and $9,350 as of June 30, 2017 and December 31, 2016, respectively

2,461

   

2,456

 

Other current assets

12,658

   

7,350

 

Total current assets

304,090

   

218,057

 

Restricted cash

17,410

   

13,646

 

Property, plant and equipment, net

3,682,269

   

3,135,162

 

Unconsolidated investments

240,561

   

233,294

 

Derivative assets

16,058

   

26,712

 

Deferred financing costs

4,023

   

4,052

 

Net deferred tax assets

4,387

   

5,559

 

Finite-lived intangible assets, net

110,617

   

91,895

 

Other assets

24,864

   

24,390

 

Total assets

$

4,404,279

   

$

3,752,767

 
       

Liabilities and equity

     

Current liabilities:

     

Accounts payable and other accrued liabilities

$

64,974

   

$

31,305

 

Accrued construction costs

4,146

   

1,098

 

Counterparty deposit liability

34,436

   

43,635

 

Accrued interest

18,222

   

9,545

 

Dividends payable

36,991

   

35,960

 

Derivative liabilities, current

11,340

   

11,918

 

Revolving credit facility

60,000

   

180,000

 

Current portion of long-term debt, net

54,975

   

48,716

 

Other current liabilities

9,121

   

4,698

 

Total current liabilities

294,205

   

366,875

 

Long-term debt, net

1,711,670

   

1,334,956

 

Derivative liabilities

24,171

   

24,521

 

Net deferred tax liabilities

43,559

   

31,759

 

Finite-lived intangible liability, net

52,929

   

54,663

 

Contingent liabilities

58,346

   

576

 

Other long-term liabilities

91,685

   

60,673

 

Total liabilities

2,276,565

   

1,874,023

 

Commitments and contingencies

     

Equity:

     

Class A common stock, $0.01 par value per share: 500,000,000 shares authorized; 87,637,816 and 87,410,687 shares outstanding as of June 30, 2017 and December 31, 2016, respectively

878

   

875

 

Additional paid-in capital

1,075,448

   

1,145,760

 

Accumulated loss

(74,397)

   

(94,270)

 

Accumulated other comprehensive loss

(47,048)

   

(62,367)

 

Treasury stock, at cost; 115,146 and 110,964 shares of Class A common stock as of June 30, 2017 and December 31, 2016, respectively

(2,597)

   

(2,500)

 

Total equity before noncontrolling interest

952,284

   

987,498

 

Noncontrolling interest

1,175,430

   

891,246

 

Total equity

2,127,714

   

1,878,744

 

Total liabilities and equity

$

4,404,279

   

$

3,752,767

 

 

Pattern Energy Group Inc.

Consolidated Statements of Operations

(In thousands of U.S. dollars, except per share data)

(Unaudited)

 
 

Three months ended
June 30,

 

Six months ended June 30,

 

2017

 

2016

 

2017

 

2016

Revenue:

             

Electricity sales

$

105,736

   

$

91,370

   

$

204,170

   

$

177,033

 

Other revenue

2,024

   

2,068

   

4,423

   

4,044

 

Total revenue

107,760

   

93,438

   

208,593

   

181,077

 

Cost of revenue:

             

Project expense

33,405

   

33,246

   

62,505

   

65,327

 

Transmission costs

4,722

   

113

   

4,792

   

278

 

Depreciation and accretion

48,518

   

43,678

   

92,258

   

87,089

 

Total cost of revenue

86,645

   

77,037

   

159,555

   

152,694

 

Gross profit

21,115

   

16,401

   

49,038

   

28,383

 

Operating expenses:

             

General and administrative

11,777

   

9,265

   

22,901

   

17,827

 

Related party general and administrative

3,576

   

1,931

   

7,002

   

3,828

 

Total operating expenses

15,353

   

11,196

   

29,903

   

21,655

 

Operating income

5,762

   

5,205

   

19,135

   

6,728

 

Other income (expense):

             

Interest expense

(24,839)

   

(21,275)

   

(47,394)

   

(42,336)

 

Loss on undesignated derivatives, net

(4,751)

   

(5,879)

   

(5,399)

   

(19,510)

 

Earnings in unconsolidated investments, net

14,519

   

7,240

   

31,395

   

11,070

 

Net loss on transactions

(807)

   

(72)

   

(1,119)

   

(39)

 

Other income, net

(27)

   

564

   

553

   

2,120

 

Total other expense

(15,905)

   

(19,422)

   

(21,964)

   

(48,695)

 

Net loss before income tax

(10,143)

   

(14,217)

   

(2,829)

   

(41,967)

 

Tax provision

4,541

   

1,429

   

9,316

   

2,727

 

Net loss

(14,684)

   

(15,646)

   

(12,145)

   

(44,694)

 

Net loss attributable to noncontrolling interest

(28,904)

   

(12,423)

   

(32,018)

   

(17,801)

 

Net income (loss) attributable to Pattern Energy

$

14,220

   

$

(3,223)

   

$

19,873

   

$

(26,893)

 
               

Weighted-average number of common shares outstanding

             

Basic

87,065,591

   

74,443,901

   

87,064,110

   

74,440,950

 

Diluted

87,217,381

   

74,443,901

   

87,257,130

   

74,440,950

 

Earnings (loss) per share attributable to Pattern Energy

             

Class A common stock:

             

Basic and diluted

$

0.16

   

$

(0.04)

   

$

0.23

   

$

(0.36)

 

Dividends declared per Class A common share

$

0.42

   

$

0.39

   

$

0.83

   

$

0.77

 

 

Pattern Energy Group Inc.

Consolidated Statements of Cash Flows

(In thousands of U.S. dollars)

(Unaudited)

 

Six months ended June 30,

 

2017

 

2016

Operating activities

     

Net loss

$

(12,145)

   

$

(44,694)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

     

Depreciation and accretion

92,258

   

87,089

 

Amortization of financing costs

3,852

   

3,498

 

Amortization of debt discount/premium, net

2,227

   

2,074

 

Amortization of power purchase agreements, net

1,489

   

1,507

 

Loss on derivatives, net

10,331

   

32,209

 

Stock-based compensation

2,768

   

2,777

 

Deferred taxes

9,149

   

2,487

 

Earnings in unconsolidated investments, net

(31,395)

   

(11,070)

 

Distributions from unconsolidated investments

31,710

   

377

 

Other reconciling items

(1,017)

   

(965)

 

Changes in operating assets and liabilities:

     

Funds deposited by counterparty

9,199

   

(49,480)

 

Trade receivables

(7,995)

   

(3,753)

 

Prepaid expenses

2,202

   

3,400

 

Other current assets

(3,638)

   

(2,920)

 

Other assets (non-current)

2,561

   

1,839

 

Accounts payable and other accrued liabilities

31,001

   

(9,631)

 

Counterparty deposit liability

(9,199)

   

49,480

 

Accrued interest

8,569

   

(178)

 

Other current liabilities

4,333

   

(433)

 

Long-term liabilities

10,648

   

6,353

 

     Contingent liabilities

275

   

10

 

Net cash provided by operating activities

157,183

   

69,976

 

Investing activities

     

Cash paid for acquisitions, net of cash and restricted cash acquired

(170,028)

   

 

Capital expenditures

(39,087)

   

(25,953)

 

Distributions from unconsolidated investments

8,390

   

31,774

 

Other assets

7,552

   

38

 

Other investing activities

12

   

(163)

 

Net cash provided by (used in) investing activities

(193,161)

   

5,696

 

Financing activities

     

Dividends paid

(71,544)

   

(56,097)

 

Capital distributions - noncontrolling interest

(9,163)

   

(8,187)

 

Payment for deferred financing costs

(7,740)

   

(134)

 

Proceeds from revolving credit facility

85,000

   

20,000

 

Repayment of revolving credit facility

(205,000)

   

(40,000)

 

Proceeds from debt

404,395

   

 

Repayment of debt

(74,824)

   

(22,262)

 

Other financing activities

(3,618)

   

(1,060)

 

Net cash provided by (used in) financing activities

117,506

   

(107,740)

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

2,248

   

2,017

 

Net change in cash, cash equivalents and restricted cash

83,776

   

(30,051)

 

Cash, cash equivalents and restricted cash at beginning of period

109,371

   

146,292

 

Cash, cash equivalents and restricted cash at end of period

$

193,147

   

$

116,241

 

Supplemental disclosures

     

Cash payments for income taxes

$

288

   

$

155

 

Cash payments for interest expense

$

33,666

   

$

36,535

 

Schedule of non-cash activities

     

Change in property, plant and equipment

$

1,110

   

$

1,302

 

Change in other assets

$

2,492

   

$

 

 

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SOURCE: Pattern Energy Group Inc.

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