Greenbacker delivers first quarter results

Key Takeaways

• Fleet added nearly 730 MW of additional clean energy capacity and over 50 new assets.
• Company closed on largest solar-plus-storage project to date.
• Portfolio acquisition more than doubled solar fleet in Wisconsin, expanded solar footprint into Iowa.
• Operational fleet continued to expand, supporting significant production increase.
• Operating revenue of over $41 million in the quarter, driven by energy revenue.
• Over $58 million capital raised in investment vehicles managed by GCM; AUM increased to approximately $3.1 billion.
• Company’s investments abate carbon emissions, conserve water, and support green jobs.
  

NEW YORK, May 16, 2023 (GLOBE NEWSWIRE) -- Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer and a leading climate-focused investment manager, has announced financial results¹ for the first quarter of 2023, as well as substantial year-over-year expansion that included closing on its largest solar-plus-storage project to date.

Fleet added nearly 730 MW of additional clean energy capacity and over 50 new assets

Greenbacker’s clean energy fleet grew by 52 assets, on a year-over-year basis, increasing the Company’s total project count to 456 (including both operating and pre-operational assets).²

This expansion represented nearly 730 MW of additional total clean energy–generating and storage capacity across the country. As of March 31, 2023, Greenbacker was conducting business in 32 states, Canada, Puerto Rico, and Washington, DC.

Company closed on largest solar-plus-storage project to date

This growth encompassed another clean energy milestone for Greenbacker, which closed on the acquisition of its largest solar-plus-storage asset to date.

When completed, the pre-operational Lincoln Solar project, will have a solar energy–generating capacity of 80 MWac / 104 MWdc. Its battery storage system will have a total power capacity of 50 MW and be able to store up to 200 megawatt-hours (“MWh”) of clean energy onsite that it can deploy during times of peak demand or power outage, contributing to lower energy costs for consumers and improving grid resiliency.

With the project, located in Wyoming, Greenbacker continued to expand its clean energy presence in the Western region, as well as its co-located solar-plus-storage fleet—which now represents over 550 MWh of energy storage across the country.

Portfolio acquisition more than doubled solar fleet in Wisconsin, expanded solar footprint into Iowa

GREC continued to expand its solar footprint during the quarter, closing on nine assets in Wisconsin as part of a recently acquired 52 MW pre-operational portfolio with a project footprint spanning four states. These projects, which have all secured long-term PPAs, represent approximately 28 MW of clean-power production capacity, more than doubling the Company’s solar capacity in the state, which now tops 48 MW.

The portfolio also includes solar assets in Colorado and Maryland, boosting Greenbacker’s solar portfolio in the respective states to 118 MW and 40 MW, as well as the Company’s first solar project in Iowa: the 2 MW Maple City solar project.

Charles Wheeler, CEO of Greenbacker, said:

“Greenbacker continues to expand into new geographies and set new Company records, bringing more clean power to consumers, making further strides toward a clean energy future, and bringing additional attractive energy transition investment opportunities to market.”

Company’s operating fleet continued to expand, supporting significant production increase

The power-production capacity of Greenbacker’s operating fleet of clean energy projects increased by 268 MW, representing year-over-year growth of 24%, as the Company moved under-construction projects into commercial operation and acquired new operational projects.

With this capacity growth, the Company’s fleet generated over 576,000 MWh of total clean power during the quarter, a 14% year-over-year increase that showcased continued production growth.

The table below summarizes the year-over-year expansion of Greenbacker’s portfolio.

GREC Portfolio Metrics*	March 31, 2023	March 31, 2022	YoY Increase (total)	YoY increase (%)
Power-production capacity of operating fleet at end of period	1.4 GW	1.1 GW	268 MW	24%
Power-generating capacity of pre-operational fleet at end of period	2.0 GW	1.5 GW	461 MW	30%
Total power-generating capacity of fleet at end of period	3.4 GW	2.6 GW	729 MW	28%
YTD total energy produced at end of period (MWh)	576,355	505,667	70,688	14%
Total number of fleet assets at end of period	456	404	52	13%

*Gigawatt (GW) figures rounded to nearest tenth of a GW.

Operating revenue of over $41 million in the quarter, driven by energy revenue

Greenbacker has also announced discrete first quarter financial information for its Independent Power Producer (“IPP”) and Investment Management (“IM”) business segments, the latter of which includes Greenbacker Capital Management (“GCM”) and its investment management platform.

Over the period, Greenbacker generated total operating revenue of $41.2 million, primarily from energy revenue within the IPP segment. Energy revenue was $37.8 million and included $28.8 million from our long-term PPAs.

In terms of PPA revenue, the Company’s operating solar fleet, which included 298 operating assets comprising 958 MW of capacity, generated $12.8 million from over 255,000 MWh of production. GREC’s operating wind fleet, which included 16 operating projects comprising 386 MW of capacity, generated $16.2 million from more than 305,000 MWh of production.

Adjusted EBITDA was $5.4 million for the quarter, largely driven by Adjusted EBITDA within the IPP segment of $15.6 million. Direct operating costs associated with capital raise efforts for certain of IM’s managed funds in their early stages and corporate expenses offset IPP results. The net loss attributable to Greenbacker was approximately $17.0 million.

Funds From Operations (“FFO”) was $(3.8) million for the period and represents the $5.4 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors.

For the three months ended March 31, 2023	In millions (unaudited)
Select Financial Information
Total Revenue	$36.2
Total operating revenue*	$41.2
Net loss attributable to Greenbacker	$(17.0)
Adjusted EBITDA†	$5.4
FFO†	$(3.8)

NOTE: See the Company’s first quarter 10-Q filed with the SEC for additional financial information and important related disclosures.
*Total operating revenue excludes non-cash contract amortization, net.
†See “Non-GAAP Financial Measures” for additional discussion.

Over $58 million capital raised in investment vehicles managed by GCM; AUM increased to approximately $3.1 billion

Greenbacker’s IM business segment continued to raise substantial additional capital from retail and institutional investors during the first quarter. The IM segment raised $58.1 million of new equity capital, on which GCM is entitled to collect management fees, bringing AUM³ to approximately $3.1 billion at the end of the period.

As of March 31, 2023, GCM served as the investment manager to four climate-focused funds. As a result of one of these funds (Greenbacker Renewable Energy Company II, LLC) reaching the $150 capital deployment milestone during the first quarter, management fees on that fund are now payable to GCM.

Company’s investments abate carbon emissions, conserve water, and support green jobs

Greenbacker’s renewable energy and energy transition investment activities continued to deliver on ESG metrics. As of March 31, 2023, the Company’s clean energy assets had cumulatively produced over 6.7 million MWh of clean power since January 2016, abating nearly 4.8 million metric tons of carbon.⁴

The Company’s clean energy projects have saved nearly 4.5 billion gallons of water,⁵ compared to the amount of water needed to produce the same amount of power by burning coal, and its business activities will sustain more than 5,900 green jobs.⁶

David Sher, Director of Greenbacker, said:

“With the high quality of the cashflows generated by our investments—and the historic tailwinds our industry continues to experience—we believe Greenbacker remains well positioned to continue delivering ESG metrics, delivering value for our shareholders, and delivering on our mission to empower a sustainable world.”

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

Non-GAAP Financial Measures
In addition to evaluating the Company’s performance on a U.S. GAAP basis, the Company now utilizes certain non-GAAP financial measures to analyze the operating performance of our segments as well as our consolidated business. Each of these measures should not be considered in isolation from or as superior to or as a substitute for other financial measures determined in accordance with U.S. GAAP, such as net income (loss) or operating income (loss). The Company uses these non-GAAP financial measures to supplement its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its operations.

Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business.

Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Funds From Operations
FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business. FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment. 

The Company believes that the analysis and presentation of FFO will enhance our investor’s understanding of the ongoing performance of our operating business. The Company will consider FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long term.

FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.

General Disclosure
This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice

GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
	March 31, 2023				December 31, 2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	79,042,613			$	143,223,982
Restricted cash		38,049,794				47,474,110
Accounts receivable		20,797,280				20,440,153
Derivative assets, current		23,961,003				24,446,790
Notes receivable, current		50,615,208				59,106,434
Other current assets		24,690,142				29,624,295
Total current assets		237,156,040				324,315,764
Noncurrent assets:
Property, plant and equipment, net		1,967,546,386				1,889,705,529
Intangible assets, net		530,144,164				540,620,964
Goodwill		221,313,776				221,313,776
Investments, at fair value		97,394,074				92,554,266
Derivative assets		127,895,375				171,392,726
Other noncurrent assets		152,802,330				147,339,466
Total noncurrent assets		3,097,096,105				3,062,926,727
Total assets	$	3,334,252,145			$	3,387,242,491
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities:
Accounts payable and accrued expenses	$	39,920,459			$	50,701,644
Shareholder distributions payable		-				9,670,283
Contingent consideration, current		24,517,751				25,891,317
Current portion of long-term debt		106,897,064				95,869,554
Redemptions payable		16,095,813				32,198,102
Other current liabilities		8,419,556				10,861,131
Total current liabilities		195,850,643				225,192,031
Noncurrent liabilities:
Long-term debt, net of current portion		911,993,052				850,760,441
Contingent consideration		78,000,000				75,700,000
Derivative liabilities		2,743,869				-
Deferred tax liabilities, net		80,482,128				85,654,803
Operating lease liabilities		104,487,520				101,281,144
Out-of-market contracts, net		214,700,962				218,112,321
Other noncurrent liabilities		43,013,685				39,825,898
Total noncurrent liabilities		1,435,421,216				1,371,334,607
Total liabilities	$	1,631,271,859			$	1,596,526,638
Redeemable noncontrolling interests		2,034,000				2,034,000
Equity:
Preferred shares, par value, $0.001 per share, 50,000,000 authorized; none issued and outstanding		-				-
Common shares, par value, $0.001 per share, 350,000,000 authorized, 196,868,820 and 198,044,410 outstanding, respectively		196,869				198,044
Additional paid-in capital		1,755,319,860				1,763,061,377
Accumulated deficit		(158,901,186	)			(114,679,721	)
Accumulated other comprehensive income		28,214,683				56,094,242
Noncontrolling interests		76,116,060				84,007,911
Total equity		1,700,946,286				1,788,681,853
Total liabilities, redeemable noncontrolling interests and equity	$	3,334,252,145			$	3,387,242,491

GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
	For the three months ended March 31, 2023
Revenue
Energy revenue	$	37,794,441
Investment Management revenue		1,925,989
Other revenue		1,499,979
Contract amortization, net		(4,993,445	)
Total revenue		36,226,964
Operating expenses
Direct operating costs		23,186,646
General and administrative		19,104,562
Depreciation, amortization and accretion		16,982,476
Total operating expenses		59,273,684
Operating loss		(23,046,720	)
Interest expense, net		(8,634,460	)
Unrealized gain on interest rate swaps, net		2,229,709
Unrealized gain on investments, net		2,572,468
Other income		39,936
Net loss before income taxes		(26,839,067	)
Provision for income taxes		(4,792,767	)
Net loss		(31,631,834	)
Net loss attributable to noncontrolling interests		(14,630,994	)
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(17,000,840	)
Earnings per share
Basic	$	(0.09	)
Weighted average shares outstanding
Basic		198,258,504

GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
	For the three months ended March 31, 2023
Cash Flows from Operating Activities
Net loss	$	(31,631,834	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion		21,975,921
Share-based compensation expense		2,658,723
Changes in fair value of contingent consideration		2,300,000
Amortization of financing costs and debt discounts		1,190,249
Amortization of interest rate swap contracts into net loss		1,616,204
Unrealized gain on interest rate swaps		(2,229,709	)
Unrealized gain on investments		(2,572,468	)
Deferred income taxes		4,792,767
Other		668,909
Changes in operating assets and liabilities:
Accounts receivable		(348,543	)
Current and noncurrent derivative assets		9,495,510
Other current and noncurrent assets		820,884
Accounts payable and accrued expenses		(4,316,669	)
Operating lease liabilities		(986,586	)
Other current and noncurrent liabilities		1,926,676
Net cash provided by operating activities		5,360,034
Cash Flows from Investing Activities
Purchases of property, plant and equipment		(99,475,546	)
Deposits paid for property, plant and equipment		(518,194	)
Purchases of investments		(2,267,340	)
Receipts from loans made to other parties		8,491,226
Net cash used in investing activities		(93,769,854	)
Cash Flows from Financing Activities
Shareholder distributions		(29,187,634	)
Repurchases of common shares		(32,198,102	)
Deferred sales commissions		(884,137	)
Contributions from noncontrolling interests		10,005,970
Distributions to noncontrolling interests		(3,818,177	)
Proceeds from borrowings		92,356,964
Payments on borrowings		(18,897,700	)
Payments for loan origination costs		(2,573,049	)
Net cash provided by financing activities		14,804,135
Net decrease in Cash, cash equivalents and Restricted cash		(73,605,685	)
Cash, cash equivalents and Restricted cash at beginning of period		190,698,092
Cash, cash equivalents and Restricted cash at end of period	$	117,092,407
Supplemental Disclosures
Interest paid, net of amounts capitalized	$	10,958,668
Non-cash investing and financing activities
Deferred sales commission payable		10,130,331
Capital expenditures incurred but not paid		17,819,421

Non-GAAP Reconciliations

Adjusted EBITDA
The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA:

	For the three months ended March 31, 2023
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(17,000,840	)
Add back or deduct the following:
Net loss attributable to noncontrolling interests		(14,630,994	)
Provision for income taxes		4,792,767
Interest expense, net		8,634,460
Unrealized gain on interest rate swaps, net		(2,229,709	)
Unrealized gain on investments, net		(2,572,468	)
Other income		(39,936	)
Depreciation, amortization and accretion(1)		22,117,218
EBITDA	$	(929,502	)
Share-based compensation expense		2,760,134
Change in fair value of contingent consideration		2,300,000
Non-recurring professional fees associated with the transition to the Non-Investment Basis		1,290,830
Adjusted EBITDA	$	5,421,462
(1) Includes contract amortization, net in the amount of $5.0 million for the three months ended March 31, 2023, which is included in Contract amortization, net on the Consolidated Statement of Operations.

The Company defines Adjusted EBITDA as net income (loss) before: (i) interest expense; (ii) income taxes; (iii) depreciation expense; (iv) amortization expense (including contract amortization); (v) accretion; (vi) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (vii) unrealized gains and losses on financial instruments; (viii) other income (loss); and (ix) foreign currency gain (loss). Additionally, the Company further adjusts for the following items described below:

• Share-based compensation is excluded from Adjusted EBITDA as it is different from other forms of compensation, as it is a non-cash expense and is highly variable. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time.
• The change in fair value of contingent consideration, which is related to Greenbacker’s acquisition of GCM and certain other affiliated companies, is excluded from Adjusted EBITDA, if any such change occurs during the period. The non-cash, mark-to-market adjustments are based on the expected achievement of revenue targets that are difficult to forecast and can be variable, making comparisons across historical and future quarters difficult to evaluate; and
• Other costs that are not consistently occurring, not reflective of expected future operating expense, and provide no insight into the fundamentals of current or past operations of our business are excluded from Adjusted EBITDA. This includes costs such as professional fees incurred as part of the transition to the Non-Investment Basis⁷ and other non-recurring costs unrelated to the ongoing operations of the Company.
  

The Company uses Segment Adjusted EBITDA to evaluate the financial performance of and allocate resources among our operating segments. Segment Adjusted EBITDA is determined for our segments consistent with the adjustments noted above but further excludes unallocated corporate expenses as these items are centrally controlled and are not directly attributable to any reportable segment.

The following table reconciles total Segment Adjusted EBITDA to Net loss attributable to Greenbacker Renewable Energy Company LLC:
	For the three months ended March 31, 2023
Segment Adjusted EBITDA:
IPP Adjusted EBITDA	$	15,589,613
IM Adjusted EBITDA		(1,311,815	)
Total Segment Adjusted EBITDA	$	14,277,798
Reconciliation:
Total Segment Adjusted EBITDA	$	14,277,798
Unallocated corporate expenses		(8,856,336	)
Total Adjusted EBITDA		5,421,462
Less:
Share-based compensation expense		2,760,134
Change in fair value of contingent consideration		2,300,000
Non-recurring professional fees associated with the transition to the Non-Investment Basis		1,290,830
Depreciation, amortization and accretion(1)		22,117,218
Operating loss		(23,046,720	)
Interest expense, net		(8,634,460	)
Unrealized gain on interest rate swaps, net		2,229,709
Unrealized gain on investments, net		2,572,468
Other income		39,936
Net loss before income taxes		(26,839,067	)
Provision for income taxes		(4,792,767	)
Net loss		(31,631,834	)
Less: Net loss attributable to noncontrolling interests		(14,630,994	)
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(17,000,840	)
(1) Includes contract amortization, net in the amount of $5.0 million for the three months ended March 31, 2023, which is included in Contract amortization, net on the Consolidated Statement of Operations.

Funds From Operations
The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and then to FFO:

	For the three months ended March 31, 2023
Net loss attributable to Greenbacker Renewable Energy Company LLC	$	(17,000,840	)
Add back or deduct the following:
Net loss attributable to noncontrolling interests		(14,630,994	)
Provision for income taxes		4,792,767
Interest expense, net		8,634,460
Unrealized gain on interest rate swaps, net		(2,229,709	)
Unrealized gain on investments, net		(2,572,468	)
Other income		(39,936	)
Depreciation, amortization and accretion(1)		22,117,218
Share-based compensation expense		2,760,134
Change in fair value of contingent consideration		2,300,000
Non-recurring professional fees associated with the transition to the Non-Investment Basis		1,290,830
Adjusted EBITDA	$	5,421,462
Cash portion of interest expense		(5,982,945	)
Distributions to tax equity investors		(3,232,071	)
FFO	$	(3,793,554	)
(1) Includes contract amortization, net in the amount of $5.0 million for the three months ended March 31, 2023, which is included in Contract amortization, net on the Consolidated Statement of Operations.

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing performance of the business.

FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment.

About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides investment management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its investment management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit https://greenbackercapital.com.

Greenbacker media contact
Chris Larson
Media Communications
847.313.0935
c.larson@greenbackercapital.com

_______________________

¹ Past performance is not indicative of future results.

² Total assets and megawatts statistics include those projects where the Company has contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”).

³ Total AUM includes GREC and GCM’s managed funds. AUM represents the underlying fair value of investments, determined generally in accordance with ASC 820, cash and cash equivalents and project level debt. These figures are unaudited and subject to change.

⁴ When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO₂ marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions.

⁵ Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.

⁶ Green jobs are calculated from the International Renewable Energy Agency's measurement that one megawatt of renewable power supports 4.6 jobs. Data is as of March 31, 2023.

⁷ We define "Non-Investment Basis" as "Non-investment company U.S. GAAP accounting the Company applied subsequent to the Acquisition" in the 10-Q.