Greenbacker delivers 2023 results


Company announces annual revenue; year-over-year increases in power generation and operating capacity; and 2023 highlights, including its first wind asset repowers, milestone monetization of IRA incentives, and new energy transition real estate strategy

Key Takeaways

  • Greenbacker completed its first project repowers and qualified them for a 40% tax credit, including the IRA’s new domestic content tax credit adder; monetizing this credit via sale-leaseback financing allowed the Company to finance the entire repower cost.
  • Company’s operating fleet added 292 MW in 2023, a year-over-year increase of 24% that included bringing online its second and third largest operating assets to date.
  • As IRA tailwinds for the energy transition asset class became clearer, Greenbacker was among the first to capitalize on both the domestic content bonus and the new solar production tax credit.
  • Greenbacker launched a new strategy focused on Energy Transition Real Estate via the Company’s investment management segment, Greenbacker Capital Management (“GCM”).
  • Company’s annual total operating revenue topped $181 million, driven by 38% year-over-year increase in solar power generation; overall production growth was muted due to the three wind assets strategically taken offline for repowers to extend projects’ useful life and potential long-term revenue.
  • Over $263 million was raised by GCM’s distribution business for its managed funds, increasing fee-earning AUM to approximately $700 million and boosting Company’s aggregate AUM to $3.8 billion.
  • Greenbacker continued to deliver on impact metrics, including carbon abatement, water conservation, and green jobs.

NEW YORK, April 04, 2024 (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 2023, including annual revenue and year-over-year growth in operating capacity and clean energy generation. During the year, the Company’s investment management business segment, Greenbacker Capital Management (“GCM”) also announced the launch of its fourth sustainability driven investment strategy, focused on Energy Transition Real Estate.

Company completed first project “repowers;” monetized domestic content bonus with sale-leaseback financing; and increased operating fleet by 24%

GREC’s fleet of renewable power projects continued to grow and diversify in 2023, as the Company captured opportunities created by the newly minted Inflation Reduction Act (“IRA”).

On the independent power producer (“IPP”) side of its business, Greenbacker—working closely with its contractor Bedrock Renewables (“Bedrock”)—completed its first wind repowers (replacing older wind turbines on existing GREC assets with new, more efficient ones), bringing three projects through redevelopment and construction. Two of these projects entered commercial operation in late 2023, with the third reaching that milestone in February 2024.

Repowering these facilities creates value for Greenbacker in several ways, including:

  1. Harnessing efficiency gains in newer technologies to improve the projects’ power-generating ability.
  2. Extending the projects’ expected useful life and contracted power purchase agreements (“PPAs”).
  3. Requalifying the projects for additional tax credits under the IRA.
  4. Reducing ongoing maintenance costs by completely replacing aging equipment with new equipment.

As part of Greenbacker’s repower strategy, the Company and Bedrock sourced equipment for the projects domestically, supporting well-paying long-term jobs for Americans and qualifying the facilities for the domestic content tax credit adder. The domestic content requirements of the IRA offer a 10% bonus investment tax credit (“ITC”), bringing the total credit to 40% of the qualified build cost. Monetizing this credit through a sale-leaseback financing allowed Greenbacker to fully finance the repower cost.

As IRA tailwinds for the energy transition asset class became clearer, Greenbacker was among the first to capitalize on two of its new incentives

While the IRA was passed into law in 2022, the benefits of the legislation were difficult to realize in 2023. Delays in IRS guidance for how the credits would be interpreted2 limited transactional volume throughout the year. As guidance was issued month by month, the market began to form a transactional precedent, and volumes increased. Greenbacker was at the forefront of these structural developments.

In addition to GREC transacting on one of the first domestic content tax credit transactions, a GCM-affiliated investment vehicle also completed one of the industry’s first solar PTC deals3—a $148 million tax equity commitment to finance what is now the largest operating clean energy asset to date across the combined GREC and GCM project fleet. In 2024, Greenbacker expects the tax equity financing market to stabilize even further as precedent becomes more established and transactional efficiencies increase.

Greenbacker launches new strategy focused on Energy Transition Real Estate; Company’s aggregate AUM increased to $3.8 billion

Greenbacker’s investment management business segment GCM also reached another new milestone in the year, launching its fourth sustainability driven investment strategy. GCM hired former Blackstone Managing Director David Zackowitz to the newly created position Head of Real Estate Investments to lead the strategy, as well as expand its real estate investment team with other key hires, including former Blackstone Principal Evan Sherman. The new strategy focuses on acquiring Energy Transition Real Estate where the company can leverage access to electricity to host distributed generation, storage, and charging infrastructure.

GCM raised over $263 million for its managed funds during the year, increasing fee-earning AUM4 to approximately $700 million, as of December 31, 2023. Aggregate AUM,5 which includes the assets managed for Greenbacker Renewable Energy Company, for which GCM does not receive management fees, rose to approximately $3.8 billion. As of December 31, 2023, GCM served as the investment manager to five energy transition-focused funds.

Company’s annual total operating revenue topped $181 million, driven by 38% year-over-year increase in solar power generation; total annual production increases were muted, due to wind assets strategically taken offline for repowering

GREC’s fleet of clean energy projects produced approximately 2.5 million megawatt-hours (“MWh”) of total power, representing a year-over-year increase of 7%. That increase was primarily due to a 38% annual production increase from Greenbacker’s operating solar fleet, which generated nearly 1.5 million MWh of clean power. The new solar assets brought online during 2023 helped drive this production growth and contributed an additional $11.4 million to the fleet’s annual operating revenue. In 2024, these new assets are expected to generate $21.8 million in operating revenue.

The fleet’s production growth was somewhat constrained by the three wind assets that Greenbacker strategically took offline to repower with new equipment. Despite being out of operation for portions of the year while that work was conducted, the three projects generated $14.6 million in annual operating revenue in 2023. With their repowering complete, those projects have now returned to operation, are generating wind energy at higher efficiency, and are expected to contribute $24.2 million to the fleet’s operating revenue in 2024.

GREC Operating Fleet20232022YoY Increase (total)YoY increase (%)
Clean power produced by solar assets (MWh)1,473,3841,067,114406,75038%
Clean power produced by wind assets (MWh)978,2361,198,236(220,000)(18)%
Total clean power generated* (MWh)2,452,1002,265,350186,7508%

*Does not include power generated by biomass facility.

During 2023, Greenbacker generated total operating revenue of $181.2 million, primarily driven by energy revenue within the IPP segment, which totaled $159.3 million and included $134.6 million from the Company’s long-term PPAs. Funds From Operations (“FFO”) was $(11.5) million for the period and represents the $31.8 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors. The net loss attributable to Greenbacker was approximately $79.5 million, driven by non-cash depreciation, amortization, and impairment charges recorded during the period.

For the year ended December 31, 2023In millions 
Select Financial Information 
Total Revenue$173.2 
Total operating revenue*$181.2 
Net loss attributable to Greenbacker$(79.5) 
  
Adjusted EBITDA$31.8 
FFO$(11.5) 

NOTE: See the Company’s 2023 10-K 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. Adjusted EBITDA and FFO are unaudited.

Operating fleet adds 292 MW, including Company’s second and third largest operating projects to date

Much of the Company’s new investment activity in 2023 was directed toward the repowers and the continued development of its pre-operational assets. During the year, Greenbacker’s development and construction capabilities resulted in 292 MW of renewable energy assets being placed into service, growing its operating fleet by nearly 24%, year-over-year.

This additional capacity included the Company’s second and third largest operating assets to date. (The largest operational asset in the GREC portfolio is the 104 MWdc / 80 MWac Graphite solar project in Carbon County, Utah, which came online in 2022).

The two new projects were the 103.7 MWdc / 80 MWac MTSun solar project which entered operation in Yellowstone County, Montana during the first quarter of 2023, and the 99 MWdc / 80 MWac Fall River solar asset in Fall River, South Dakota which reached commercial operation in September 2023. Both assets have long-term PPAs in place with investment-grade utilities.

“After continuing to accelerate Greenbacker’s growth in 2023, we look forward to pushing the boundaries even further in 2024,” said Charles Wheeler, CEO of GREC. “We expect to start construction on our largest pre-operational asset to date, as well as begin the process of repowering additional assets in our operational fleet. Looking further ahead, we expect to complete construction on the vast majority of our pre-operational fleet and place it into service on a rolling basis by the end of 2027.”

Majority of pre-operational fleet to enter operation, become revenue-generating by end of 2027

With the tailwinds of the IRA, and the expertise to harness them, Greenbacker plans to continue building out its pre-construction pipeline in 2024, converting development opportunities into risk mitigated pools of operational cash flows.

The Company expects that these additional operational assets will generate strong growth in revenues and EBITDA, as it begins benefiting from the additional contracted cash flows from an increasing number of operating projects.

The table below illustrates Greenbacker’s estimated timeline for bringing into service its current pre-operational pipeline.

 Operating Fleet (MW)Pre-Operating Fleet (MW)Total (MW)
4Q 20231,5331,7513,284
4Q 20241,7881,4963,284
4Q 20252,2461,0383,284
4Q 20263,1031813,284
4Q 20273,257273,284

Capacity figures are rounded to nearest MW. Figures may not add to stated totals due to rounding. The figures in this table reflect the estimated timeline as of 12/31/23. Timelines may change or be adjusted based on market conditions.

Compared with the estimated timeline included in Greenbacker’s third-quarter results press release, the table reflects approximately 64 MW that have been removed from Greenbacker's fleet. The majority of these MW represent pre-operational assets that no longer optimally align with the Company’s investment strategy for various reasons, and their removal was de minimis to GREC’s overall value.

“In 2024, we plan to capitalize on our operational expertise and seek to deliver value to shareholders through yield compression on our assets,” said Dan De Boer, Greenbacker’s new Head of Infrastructure. “History shows that the best opportunities to invest have come out of periods of turbulence and uncertainty; with global infrastructure fundraising down significantly in 20236 and, in our view, a period of unprecedented macro expansion ahead of us in the energy transition space, we believe that the time to act on that opportunity is now.”

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

Along with significant annual revenue and year-over-year production and capacity increases, GREC also continued to deliver on its sustainability and impact goals during the year.

As of December 31, 2023, Greenbacker’s clean energy assets had cumulatively produced approximately 8.7 million MWh of clean power since January 2016, abating over 6.1 million metric tons of carbon.7 The Company’s clean energy projects have saved more than 5.9 billion gallons of water,8 compared to the amount of water needed to produce the same amount of power by burning coal. Greenbacker’s investment activities will sustain over 6,400 green jobs.9

Additionally, Greenbacker officially became signatories of the internationally recognized Principles for Responsible Investment in 2023 and was also named to the prestigious ImpactAssets 50 2023 impact fund managers.

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 cash paid for 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 continue to 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 SHEETS
(in thousands, except per share data)
     
  December 31, 2023 December 31, 2022
    
Assets   
Current assets:   
Cash and cash equivalents$96,872  $143,224 
Restricted cash, current 85,235   47,474 
Accounts receivable 23,310   20,440 
Derivative assets, current 24,062   24,447 
Notes receivable, current 28,491   59,106 
Other current assets 33,938   29,624 
Total current assets 291,908   324,315 
Noncurrent assets:   
Restricted cash 5,568    
Property, plant and equipment, net 2,133,877   1,889,706 
Intangible assets, net 453,214   540,621 
Goodwill 221,314   221,314 
Investments, at fair value 94,878   92,554 
Derivative assets 118,106   171,393 
Other noncurrent assets 140,740   147,339 
Total noncurrent assets 3,167,697   3,062,927 
Total assets$3,459,605  $3,387,242 
    
Liabilities, Redeemable Noncontrolling Interests and Equity   
Current liabilities:   
Accounts payable and accrued expenses$79,288  $50,702 
Shareholder distributions payable 7,606   9,670 
Contingent consideration, current 16,546   25,891 
Current portion of long-term debt 82,855   95,870 
Current portion of failed sale-leaseback financing 69,436    
Redemptions payable 361   32,198 
Other current liabilities 7,636   10,862 
Total current liabilities 263,728   225,193 
Noncurrent liabilities:   
Long-term debt, net of current portion 935,397   850,760 
Failed sale-leaseback financing, net of current portion 169,829    
Contingent consideration 42,307   75,700 
Derivative liabilities 5,833    
Deferred tax liabilities, net 58,696   85,655 
Operating lease liabilities 108,406   101,281 
Out-of-market contracts, net 194,785   218,112 
Other noncurrent liabilities 47,659   39,826 
Total noncurrent liabilities 1,562,912   1,371,334 
Total liabilities$1,826,640  $1,596,527 
    
Redeemable noncontrolling interests 2,179   2,034 
Redeemable common shares, par value, $0.001 per share, 873 outstanding  1    
Redeemable common shares, additional paid-in capital 7,245    
     
Equity:   
Preferred stock, par value, $0.001 per share, 50,000 authorized; none issued and outstanding     
Common shares, par value, $0.001 per share, 350,000 authorized, 197,749 and 198,044 outstanding as of 2023 and 2022, respectively 198   198 
Additional paid-in capital 1,770,060   1,763,061 
Accumulated deficit (306,525)  (114,680)
Accumulated other comprehensive income 45,932   56,094 
Noncontrolling interests 113,875   84,008 
Total equity 1,623,540   1,788,681 
Total liabilities, redeemable noncontrolling interests and equity$3,459,605  $3,387,242 
     


GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
     
  For the year ended December 31, 2023 For the period from May 19, 2022 through December 31, 2022
Revenue   
Energy revenue$159,301  $101,596 
Investment Management revenue 13,490   1,919 
Other revenue 8,434   7,506 
Contract amortization, net (8,060)  (10,529)
Total revenue 173,165   100,492 
    
Operating expenses   
Direct operating costs 105,586   55,889 
General and administrative 60,014   45,442 
Depreciation, amortization and accretion 125,743   39,149 
Impairment of long-lived assets 59,294    
Total operating expenses 350,637   140,480 
    
Operating loss (177,472)  (39,988)
    
Interest expense, net (40,519)  (15,889)
Realized gain (loss) on interest rate swaps, net  2,428   (1,322)
Unrealized gain (loss) on interest rate swaps, net 17,763   (249)
Unrealized gain on investments, net 932   398 
Other expense, net (267)  (108)
    
Net loss before income taxes (197,135)  (57,158)
Benefit from (provision for) income taxes 21,548   (3,005)
Net loss (175,587)  (60,163)
Less: Net loss attributable to noncontrolling interests (96,935)  (59,439)
Less: Net income attributable to redeemable noncontrolling interests 819   - 
Net loss attributable to Greenbacker Renewable Energy Company LLC$(79,471) $(724)
    
Earnings per share   
Basic$(0.40) $0.00 
Diluted$(0.40) $0.00 
    
Weighted average shares outstanding   
Basic 199,293   201,668 
Diluted 199,293   201,668 
        


GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
     
  For the year ended December 31, 2023 For the period from May 19, 2022 through December 31, 2022
Cash Flows from Operating Activities   
Net loss$(175,587) $(60,163)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Depreciation, amortization and accretion 133,803   49,678 
Impairment of long-lived assets 59,294    
Share-based compensation expense 11,248   6,904 
Changes in fair value of contingent consideration (603)  2,100 
Amortization of financing costs and debt discounts 6,711   2,476 
Amortization of interest rate swap contracts 6,750   1,709 
Change in fair value of interest rate swaps (17,763)  249 
Realized (gain) loss on interest rate swaps (2,428)  1,322 
Change in fair value of investments (932)  (398)
Deferred income taxes (21,548)  3,005 
Other 5,743   1,553 
Changes in operating assets and liabilities:   
Accounts receivable (2,959)  7,641 
Current and noncurrent derivative assets 56,696    
Other current and noncurrent assets (10,661)  (5,209)
Accounts payable and accrued expenses 14,891   (2,723)
Operating lease liabilities (1,290)  32 
Other current and noncurrent liabilities 1,036   3,519 
Net cash provided by operating activities 62,401   11,695 
    
Cash Flows from Investing Activities   
Purchases of property, plant and equipment (360,650)  (393,257)
Deposits returned (paid) for property, plant and equipment, net 8,138   (16,450)
Purchases of investments (5,298)  (34,801)
Sales of investments 3,906    
Loans made to other parties    (48,238)
Receipts of notes receivable to other parties 30,725   17,467 
Cash acquired from Acquisition and consolidation of GDEV, net    1,714 
Proceeds from sale of investment in and deconsolidation of GDEV     5,467 
Net cash used in investing activities (323,179)  (468,098)
    
Cash Flows from Financing Activities   
Shareholder distributions (87,597)  (51,525)
Return of collateral paid for swap contract 1,735   11,827 
Repurchases of common shares (82,719)  (17,207)
Deferred sales commissions (3,486)  (1,852)
Contributions from noncontrolling interests 144,895   104,550 
Distributions to noncontrolling interests (17,498)  (11,151)
Proceeds from borrowings 425,532   499,654 
Payments on borrowings (351,764)  (81,621)
Proceeds from failed sale-leaseback 240,969    
Payments for loan origination costs (11,447)  (12,167)
Other capital activity (865)  1,144 
Net cash provided by financing activities 257,755   441,652 
    
Net decrease in Cash, cash equivalents and Restricted cash (3,023)  (14,751)
Cash, cash equivalents and Restricted cash at beginning of period* 190,698   205,449 
Cash, cash equivalents and Restricted cash at end of period $187,675  $190,698 
    
* Cash, cash equivalents and Restricted cash as of May 18, 2022 includes all consolidated subsidiaries of the Company upon the change in status.
 

Non-GAAP Reconciliations

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

         
(in thousands)For the three months ended December 31, 2023 For the three months ended December 31, 2022 For the year ended December 31, 2023 For the period from May 19, 2022 through December 31, 2022
Net (loss) income attributable to Greenbacker Renewable Energy Company LLC$(15,822) $2,316  $(79,471) $(724)
Add back or deduct the following:       
Net loss attributable to noncontrolling interests (31,126)  (35,340)  (96,935)  (59,439)
Net income attributable to redeemable noncontrolling interests 819      819    
(Benefit from) provision for income taxes (7,393)  4,123   (21,548)  3,005 
Interest expense, net 12,434   6,509   40,519   15,889 
Realized (gain) loss on interest rate swaps, net  (2,428)  1,322   (2,428)  1,322 
Unrealized loss (gain) on interest rate swaps, net 18,234   249   (17,763)  249 
Unrealized (gain) on investments, net (2,200)  (4,750)  (932)  (398)
Other expense (income), net 512   (364)  267   108 
Depreciation, amortization and accretion(1) 15,589   23,121   134,647   49,772 
EBITDA$(11,381) $(2,814) $(42,825) $9,784 
Share-based compensation expense 1,255   2,727   11,248   6,903 
Change in fair value of contingent consideration 3,500   1,300   (603)  2,100 
Impairment of long-lived assets 8,632      59,294    
Non-recurring professional services and legal fees 468   2,894   3,388   7,593 
Non-recurring salaries and personnel related expenses       1,250    
Adjusted EBITDA$2,474  $4,107  $31,752  $26,380 
         
(1) Includes Contract amortization, net in the amount of $(5.8) million, $4.3 million, $8.1 million and $10.5 million for the three months ended December 31, 2023, the three months ended December 31, 2022, the year ended December 31, 2023 and the period from May 19, 2022 through December 31, 2022, respectively, which are included in Contract amortization, net on the Consolidated Statements 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) impairment of long-lived assets; (vii) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (viii) unrealized gains and losses on financial instruments; (ix) other income (loss); and (x) 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.
  • 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 services and legal fees, some of which were incurred as part of the transition to non-investment company accounting, 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) income attributable to Greenbacker Renewable Energy Company LLC:

         
(in thousands)For the three months ended December 31, 2023 For the three months ended December 31, 2022 For the year ended December 31, 2023 For the period from May 19, 2022 through December 31, 2022
Segment Adjusted EBITDA:       
IPP Adjusted EBITDA$6,721  $18,419  $62,180  $53,627 
IM Adjusted EBITDA 1,601   (4,954)  (2,674)  (8,480)
Total Segment Adjusted EBITDA 8,322   13,465   59,506   45,147 
        
Reconciliation:       
Total Segment Adjusted EBITDA$8,322  $13,465  $59,506  $45,147 
Unallocated corporate expenses (5,848)  (9,358)  (27,754)  (18,767)
Total Adjusted EBITDA 2,474   4,107   31,752   26,380 
         
Less:       
Share-based compensation expense 1,255   2,727   11,248   6,903 
Change in fair value of contingent consideration 3,500   1,300   (603)  2,100 
Non-recurring professional services and legal fees 468   2,894   3,388   7,593 
Non-recurring salaries and personnel related expenses       1,250    
Depreciation, amortization and accretion(1) 15,589   23,121   134,647   49,772 
Impairment of long-lived assets 8,632      59,294    
Operating loss$(26,970) $(25,935) $(177,472) $(39,988)
        
Interest expense, net (12,434)  (6,509)  (40,519)  (15,889)
Realized gain (loss) on interest rate swaps, net  2,428   (1,322)  2,428   (1,322)
Unrealized (loss) gain on interest rate swaps, net (18,234)  (249)  17,763   (249)
Unrealized gain on investments, net 2,200   4,750   932   398 
Other (expense) income, net (512)  364   (267)  (108)
Net loss before income taxes (53,522)  (28,901)  (197,135)  (57,158)
        
Benefit from (provision for) income taxes 7,393   (4,123)  21,548   (3,005)
Net loss (46,129)  (33,024)  (175,587)  (60,163)
Less: Net loss attributable to noncontrolling interests (31,126)  (35,340)  (96,935)  (59,439)
Less: Net income attributable to redeemable noncontrolling interests 819      819    
Net (loss) income attributable to Greenbacker Renewable Energy Company LLC$(15,822) $2,316  $(79,471) $(724)
         
(1) Includes Contract amortization, net in the amount of $(5.8) million, $4.3 million, $8.1 million and $10.5 million for the three months ended December 31, 2023, the three months ended December 31, 2022, the year ended December 31, 2023 and the period from May 19, 2022 through December 31, 2022, respectively, which are included in Contract amortization, net on the Consolidated Statements of Operations.
 

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

         
(in thousands) For the three months ended December 31, 2023 For the three months ended December 31, 2022 For the year ended December 31, 2023 For the period from May 19, 2022 through December 31, 2022
Net (loss) income attributable to Greenbacker Renewable Energy Company LLC$(15,822) $2,316  $(79,471) $(724)
Add back or deduct the following:       
Net loss attributable to noncontrolling interests (31,126)  (35,340)  (96,935)  (59,439)
Net income attributable to redeemable noncontrolling interests 819      819    
(Benefit from) provision for income taxes (7,393)  4,123   (21,548)  3,005 
Interest expense, net 12,434   6,509   40,519   15,889 
Realized (gain) loss on interest rate swaps, net  (2,428)  1,322   (2,428)  1,322 
Unrealized loss (gain) on interest rate swaps, net 18,234   249   (17,763)  249 
Unrealized (gain) on investments, net (2,200)  (4,750)  (932)  (398)
Other expense (income), net 512   (364)  267   108 
Depreciation, amortization and accretion(1) 15,589   23,121   134,647   49,772 
Impairment of long-lived assets 8,632      59,294    
Share-based compensation expense 1,255   2,727   11,248   6,903 
Change in fair value of contingent consideration 3,500   1,300   (603)  2,100 
Non-recurring professional services and legal fees 468   2,894   3,388   7,593 
Non-recurring salaries and personnel related expenses       1,250    
Adjusted EBITDA$2,474  $4,107  $31,752  $26,380 
Cash portion of interest expense (7,869)  (3,732)  (27,473)  (11,783)
Distributions to tax equity investors (2,449)  (3,770)  (15,748)  (11,363)
FFO$(7,844) $(3,395) $(11,469) $3,234 
         
(1) Includes Contract amortization, net in the amount of $(5.8) million, $4.3 million, $8.1 million and $10.5 million for the three months ended December 31, 2023, the three months ended December 31, 2022, the year ended December 31, 2023 and the period from May 19, 2022 through December 31, 2022, respectively, which are included in Contract amortization, net on the Consolidated Statements 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
646.569.9532
c.larson@greenbackercapital.com

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4779bf19-9003-4d71-97c4-46a179053eba
https://www.globenewswire.com/NewsRoom/AttachmentNg/f402a30e-4171-4bfd-8a0f-6342e7fc78f7

______________________________
1 Past performance is not indicative of future results.
2 Treasury and IRS Publish Long-Awaited Guidance on Renewable Energy Investment Tax Credit, Morgan Lewis, November 28, 2023.
3 The solar PTC is the game-changer that hasn’t been, Utility Dive, December 20, 2023.

4 Fee-earning AUM represents the asset base upon which management fee revenue is earned from GCM's managed funds.
5 Aggregate 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.
6 Infrastructure fundraising slows down in 2023, Pensions & Investments, Larry Rothman, January 17, 2024.
7 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.
8 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.
9 Green jobs are calculated from the International Renewable Energy Agency's measurement that one megawatt of renewable power supports approximately 4 jobs. Data is as of December 31, 2023.


Greenbacker's 104 MW MTSun solar project Greenbacker's 99 MW Fall River solar asset