Key Takeaways
- Greenbacker continued to execute on project build-out, bringing online 211 MW of pre-operating assets and increasing its revenue-generating operating fleet by 15%, year-over-year.
- Total operating revenue of $58 million represented a 14% year-over-year increase, primarily driven by a 20% increase in clean power generation from the Company’s operating assets, which produced 916,000 MWh in the quarter.
- Wind and solar fleets both drove greater year-over-year production, as two dozen pre-operating solar assets entered commercial operation and wind repowers added to fleet performance.
- $41 million raised in vehicles managed by Greenbacker’s investment management segment, Greenbacker Capital Management (“GCM”) during the quarter, boosting fee-earning AUM to over $760 million; aggregate AUM was $3.7 billion.
- Company plans to significantly increase operating fleet over the next four years by completing the development and construction of its pre-operating assets, supporting the continued growth of long-term, predictable revenue and cash flow.
- Company’s investments continued to support sustainability, abating 7.2 million metric tons of carbon emissions, saving 7.0 billion gallons of water, and supporting over 6,800 green jobs.
NEW YORK, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer and energy transition-focused investment manager, has announced financial results1 for the second quarter of 2024, including year-over-year increases in revenue, operating capacity,2 and clean energy generation.
Greenbacker continued to execute on the build-out of its portfolio of projects, increasing its operating fleet 15% year-over-year by converting 211 MW of pre-operating projects into operating assets generating revenue and cash flow
Over the period, Greenbacker continued to execute on one of its primary objectives: completing construction on the pre-operating assets under its control, converting them into revenue-generating operating assets.
Year-over-year, the Company’s independent power producer (“IPP”) business segment placed 211 additional pre-operating megawatts (“MW”) into commercial operation, growing its operating fleet by over 15%.
As of June 30, 2024, the total capacity of GREC’s operating fleet had increased to 1.6 gigawatts (“GW”) of assets generating revenue and cash flow through the sale of clean energy.
Total operating revenue of $57.9 million in the second quarter represented a 14% year-over-year increase, driven by significant production increases
During the quarter, this increased capacity contributed to Greenbacker’s total operating revenue of $57.9 million—a year-over-year increase of 14% that amounted to an additional $7.1 million of operating revenue.
Revenue from the sale of clean energy within the IPP segment totaled $50.3 million in the quarter, approximately 90% (or $44.9 million) of which came from the Company’s long-term power purchase agreements (“PPAs”).
Funds From Operations (“FFO”) was $10.0 million for the period and represents $22.1 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors. The net loss attributable to Greenbacker was $10.8 million, driven by items such as depreciation, amortization, and impairment charges recorded during the period. The year-over-year decrease is primarily related to the allocation of tax equity benefits and losses associated with a large project that was placed into service in the second quarter of 2023, contributing to positive net income attributable to Greenbacker during that period.
| Select Financial Information for the Three Months Ended June 30 (in millions) | Second Quarter 2024 | Second Quarter 2023 | YoY Increase (total) | YoY increase (%) | |||
| Total Revenue | $ 54.4 | $46.0 | $8.4 | 18% | |||
| Total operating revenue* | $ 57.9 | $50.8 | $7.1 | 14% | |||
| Net income (loss) attributable to Greenbacker | $ (10.8) | $13.8 | $(24.6) | (178)% | |||
| Adjusted EBITDA† | $ 22.1 | $13.7 | $8.3 | 61% | |||
| FFO† | $ 10.0 | $2.5 | $7.5 | 300% | |||
NOTE: Figures are unaudited. See the Company’s quarterly 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. Adjusted EBITDA and FFO are unaudited.
The year-over-year increase in revenues was primarily driven by revenue related to greater clean power production from the Company’s fleet of operating assets, which produced over 900,000 megawatt-hours (“MWh”) of total power in the quarter, marking a year-over-year production increase of 20%.
| GREC Operating Fleet | Second Quarter 2024 | Second Quarter 2023 | YoY Increase (total) | YoY Increase (%) |
| Clean power produced by solar assets (MWh) | 576,925 | 483,816 | 93,109 | 19% |
| PPA revenue generated by solar assets (millions) | $27.7 | $24.1 | $3.6 | 15% |
| Clean power produced by wind assets (MWh) | 336,649 | 268,980 | 67,669 | 25% |
| PPA revenue generated by wind assets (millions) | $17.0 | $14.1 | $2.9 | 21% |
| Total clean power generated by wind and solar assets (MWh) | 913,574 | 752,796 | 160,778 | 21% |
| Total PPA operating revenue generated by wind and solar assets (millions) | $44.7 | $38.2 | $6.6 | 17% |
Some figures may not add to stated totals due to rounding. Total clean power generated does not include power produced by other renewable sources.
Solar and wind fleets substantially increased power production, due to additional solar assets brought online and the impact of Company’s wind repowers
During the second quarter, the Company’s solar assets generated 577,000 MWh of clean power, while its wind assets produced 337,000 MWh, representing year-over-year increases of 19% and 25%, respectively.
The year-over-year solar production increase was largely driven by the more than two dozen additional solar assets the Company placed into operation over the past 12 months. These included the 99 MW Fall River project in South Dakota, 50 MW of assets in New York, and Greenbacker’s 6.4 MW Montezuma solar project in Colorado, pictured below.
Greenbacker’s recent wind repower portfolio contributed significantly to the wind fleet’s year-over-year production increase. This was due to two of the portfolio’s three assets being strategically taken offline during the second quarter of 2023 to begin repowering, which temporarily muted production during that period, and because all three projects were fully operational and producing power with new, more efficient turbines for the entire second quarter of 2024.
The repowers are projected to significantly increase Greenbacker’s annual operating revenue for the remaining decades of their estimated useful life.3
$41 million raised in investment vehicles managed by the Company’s investment management segment, GCM, increasing fee-earning AUM to over $760 million
Greenbacker’s investment management (“IM”) business segment, Greenbacker Capital Management (“GCM”), raised $40.9 million for its managed funds during the second quarter, increasing its year-to-date capital raise to $85.1 million.
With this additional capital, fee-earning AUM4 increased to over $760 million, as of quarter end. Aggregate AUM,5 which includes the assets managed for Greenbacker Renewable Energy Company, for which GCM does not receive management fees, was approximately $3.7 billion.
Greenbacker’s IM business segment generated $5.6 million of revenue in the quarter, representing a year-over-year increase of 27%, or an additional $1.2 million of revenue, driven by the increase in fee-earning AUM.
Company plans to significantly increase revenue-generating operating capacity by constructing remaining pre-operating assets over next four years
Greenbacker plans to continue building out its pre-operating fleet. By the end of 2028, as the Company successfully carries out its development and construction plans, Greenbacker expects to substantially increase the capacity of its operating fleet, supporting long-term, predictable growth in revenues, cashflows, and Adjusted EBITDA, as its additional assets become operational and begin producing and selling electricity.6
The table below illustrates Greenbacker’s estimated timeline for its current pre-operational assets to enter commercial operation.7
| Operating Fleet (MW) | Pre-Operating Fleet (MW) | Total (MW) | |
| Q2 2024 | 1,597 | 1,631 | 3,228 |
| Q2 2025 | 1,747 | 1,481 | 3,228 |
| Q2 2026 | 1,832 | 1,396 | 3,228 |
| Q2 2027 | 2,793 | 435 | 3,228 |
| Q1 2028 | 3,228 | 0 | 3,228 |
Capacity figures in this table are rounded to nearest MW. Figures may not add to stated totals due to rounding. The table reflects estimated timelines as of 6/30/24. Figures and timelines may change or be adjusted based on market conditions or other factors.
Company’s investments abate carbon emissions, conserve water, and support green jobs
Along with executing on significant year-over-year increases in revenue, power production, and operating fleet capacity, GREC also continued to deliver on its sustainability goals.
As of June 30, 2024, Greenbacker’s clean energy assets had cumulatively produced over 10.1 million MWh of clean power since January 2016, abating nearly 7.2 million metric tons of carbon.8 The Company’s clean energy projects have saved approximately 7.0 billion gallons of water,9 compared to the amount of water needed to produce the same amount of power by burning coal. Greenbacker’s investment activities will sustain over 6,800 green jobs.10
Additional information regarding the Company’s impact can also be found in Greenbacker’s latest impact report.
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 calculations 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 considers 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) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 103,960 | $ | 96,872 | |||
| Restricted cash, current | 24,266 | 85,235 | |||||
| Accounts receivable, net | 33,275 | 23,310 | |||||
| Derivative assets, current | 25,569 | 24,062 | |||||
| Contingent consideration | 40,808 | — | |||||
| Other current assets | 58,293 | 62,429 | |||||
| Total current assets | 286,171 | 291,908 | |||||
| Noncurrent assets: | |||||||
| Restricted cash | 3,119 | 5,568 | |||||
| Property, plant and equipment, net | 2,203,483 | 2,133,877 | |||||
| Intangible assets, net | 434,688 | 453,214 | |||||
| Goodwill | 221,314 | 221,314 | |||||
| Investments, at fair value | 92,983 | 94,878 | |||||
| Derivative assets | 91,589 | 118,106 | |||||
| Other noncurrent assets | 130,976 | 140,740 | |||||
| Total noncurrent assets | 3,178,152 | 3,167,697 | |||||
| Total assets | $ | 3,464,323 | $ | 3,459,605 | |||
| Liabilities, Redeemable Noncontrolling Interests and Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 59,216 | $ | 79,288 | |||
| Shareholder distributions payable | — | 7,606 | |||||
| Contingent consideration, current | 20,402 | 16,546 | |||||
| Current portion of long-term debt | 100,782 | 82,855 | |||||
| Current portion of failed sale-leaseback financing and deferred ITC gain | 45,667 | 69,436 | |||||
| Other current liabilities | 13,970 | 7,997 | |||||
| Total current liabilities | 240,037 | 263,728 | |||||
| Noncurrent liabilities: | |||||||
| Long-term debt, net of current portion | 905,007 | 935,397 | |||||
| Failed sale-leaseback financing and deferred ITC gain, net of current portion | 220,461 | 169,829 | |||||
| Contingent consideration, net of current portion | 40,590 | 42,307 | |||||
| Deferred tax liabilities, net | 70,472 | 58,696 | |||||
| Operating lease liabilities | 108,564 | 108,406 | |||||
| Out-of-market contracts, net | 187,404 | 194,785 | |||||
| Other noncurrent liabilities | 51,397 | 53,492 | |||||
| Total noncurrent liabilities | 1,583,895 | 1,562,912 | |||||
| Total liabilities | $ | 1,823,932 | $ | 1,826,640 | |||
| Redeemable noncontrolling interests | $ | 1,831 | $ | 2,179 | |||
| Redeemable common shares, par value, $0.001 per share, 85 and 873 outstanding as of 2024 and 2023, respectively | — | 1 | |||||
| Redeemable common shares, additional paid-in capital | 657 | 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, 199,097 and 197,749 outstanding as of 2024 and 2023, respectively | 199 | 198 | |||||
| Additional paid-in capital | 1,790,491 | 1,770,060 | |||||
| Accumulated deficit | (362,756 | ) | (306,525 | ) | |||
| Accumulated other comprehensive income | 61,377 | 45,932 | |||||
| Noncontrolling interests | 148,592 | 113,875 | |||||
| Total equity | 1,637,903 | 1,623,540 | |||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 3,464,323 | $ | 3,459,605 | |||
| GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (unaudited) | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | |||||||||||||||
| Energy revenue | $ | 50,306 | $ | 44,599 | $ | 94,875 | $ | 82,394 | |||||||
| Investment Management revenue | 5,577 | 4,405 | 9,508 | 6,331 | |||||||||||
| Other revenue | 2,027 | 1,770 | 2,695 | 3,269 | |||||||||||
| Contract amortization, net | (3,460 | ) | (4,751 | ) | (6,075 | ) | (9,744 | ) | |||||||
| Total net revenue | $ | 54,450 | $ | 46,023 | $ | 101,003 | $ | 82,250 | |||||||
| Operating expenses | |||||||||||||||
| Direct operating costs | 24,063 | 26,514 | 51,053 | 49,484 | |||||||||||
| General and administrative | 22,863 | 13,337 | 42,211 | 32,658 | |||||||||||
| Depreciation, amortization and accretion | 20,451 | 33,163 | 40,936 | 50,146 | |||||||||||
| Gain on deconsolidation, net | (5,722 | ) | — | (5,722 | ) | — | |||||||||
| Impairment of long-lived assets, net | 2 | — | 6,330 | — | |||||||||||
| Total operating expenses | 61,657 | 73,014 | 134,808 | 132,288 | |||||||||||
| Operating loss | (7,207 | ) | (26,991 | ) | (33,805 | ) | (50,038 | ) | |||||||
| Interest (expense) income, net | (9,774 | ) | 947 | (14,024 | ) | (5,457 | ) | ||||||||
| Change in fair value of investments, net | (1,600 | ) | (1,895 | ) | (2,166 | ) | 678 | ||||||||
| Other (expense) income, net | (127 | ) | (9 | ) | (2 | ) | 30 | ||||||||
| Loss before income taxes | (18,708 | ) | (27,948 | ) | (49,997 | ) | (54,787 | ) | |||||||
| (Provision for) benefit from income taxes | (3,191 | ) | 7,412 | (6,255 | ) | 2,619 | |||||||||
| Net loss | $ | (21,899 | ) | $ | (20,536 | ) | $ | (56,252 | ) | $ | (52,168 | ) | |||
| Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (11,073 | ) | (34,350 | ) | (36,947 | ) | (48,981 | ) | |||||||
| Net (loss) income attributable to Greenbacker Renewable Energy Company LLC | $ | (10,826 | ) | $ | 13,814 | $ | (19,305 | ) | $ | (3,187 | ) | ||||
| Earnings per share | |||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.07 | $ | (0.10 | ) | $ | (0.02 | ) | ||||
| Diluted | $ | (0.05 | ) | $ | 0.07 | $ | (0.10 | ) | $ | (0.02 | ) | ||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 199,474 | 197,150 | 199,165 | 197,701 | |||||||||||
| Diluted | 199,474 | 197,150 | 199,165 | 197,701 | |||||||||||
| GREENBACKER RENEWABLE ENERGY COMPANY LLC AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
| Six months ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash Flows from Operating Activities | |||||||
| Net loss | $ | (56,252 | ) | $ | (52,168 | ) | |
| Adjustments to reconcile Net loss to Net cash provided by operating activities: | |||||||
| Depreciation, amortization and accretion | 47,011 | 59,890 | |||||
| Gain on deconsolidation, net | (5,722 | ) | — | ||||
| Impairment of long-lived assets, net | 6,330 | — | |||||
| Share-based compensation expense | 11,705 | 5,305 | |||||
| Changes in fair value of contingent consideration | 926 | 1,317 | |||||
| Amortization of financing costs and debt discounts | 2,927 | 2,394 | |||||
| Amortization of interest rate swap contracts | 732 | 3,333 | |||||
| Change in fair value of interest rate swaps, net | (12,255 | ) | (11,969 | ) | |||
| Gain on interest rate swaps, net | (1,410 | ) | — | ||||
| Change in fair value of investments | 2,166 | (678 | ) | ||||
| Deferred income taxes | 6,255 | (2,619 | ) | ||||
| Interest expense on failed sale-leaseback financing and deferred ITC gain | 3,736 | — | |||||
| Other | 1,439 | 1,624 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (10,796 | ) | (7,674 | ) | |||
| Current and noncurrent derivative assets | 53,749 | 9,496 | |||||
| Other current and noncurrent assets | 6,364 | (6,636 | ) | ||||
| Accounts payable and accrued expenses | (436 | ) | 6,577 | ||||
| Operating lease liabilities | (930 | ) | (1,023 | ) | |||
| Other current and noncurrent liabilities | (521 | ) | 1,302 | ||||
| Net cash provided by operating activities | 55,018 | 8,471 | |||||
| Cash Flows from Investing Activities | |||||||
| Purchases of property, plant and equipment | (127,271 | ) | (168,410 | ) | |||
| Net deposits returned (paid) for property, plant and equipment | 6,722 | (4,768 | ) | ||||
| Purchases of investments | (271 | ) | (2,707 | ) | |||
| Loans made to other parties | (8,658 | ) | — | ||||
| Receipts from notes receivable | 7,797 | 8,820 | |||||
| Net cash used in investing activities | (121,681 | ) | (167,065 | ) | |||
| Cash Flows from Financing Activities | |||||||
| Shareholder distributions | (37,341 | ) | (43,675 | ) | |||
| Repurchases of common shares | (1,357 | ) | (48,219 | ) | |||
| Deferred shareholder servicing fees | (1,595 | ) | (1,781 | ) | |||
| Contributions from noncontrolling interests | 39,595 | 55,674 | |||||
| Distributions to noncontrolling interests | (6,678 | ) | (6,575 | ) | |||
| Buyout of noncontrolling interest | (179 | ) | — | ||||
| Proceeds from borrowings | 131,047 | 159,655 | |||||
| Payments on borrowings | (135,305 | ) | (60,519 | ) | |||
| Proceeds from failed sale-leaseback | 111,453 | — | |||||
| Payments on failed sale-leaseback | (87,275 | ) | — | ||||
| Payments for loan origination costs | (2,032 | ) | (4,024 | ) | |||
| Net cash provided by financing activities | 10,333 | 50,536 | |||||
| Net decrease in Cash, cash equivalents and Restricted cash | (56,330 | ) | (108,058 | ) | |||
| Cash, cash equivalents and Restricted cash at beginning of period | 187,675 | 190,698 | |||||
| Cash, cash equivalents and Restricted cash at end of period | $ | 131,345 | $ | 82,640 | |||
Non-GAAP Reconciliations
Adjusted EBITDA and FFO
The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and FFO:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net (loss) income attributable to Greenbacker Renewable Energy Company LLC | $ | (10,826 | ) | $ | 13,814 | $ | (19,305 | ) | $ | (3,187 | ) | ||||
| Add back or deduct the following: | |||||||||||||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (11,073 | ) | (34,350 | ) | (36,947 | ) | (48,981 | ) | |||||||
| Provision for (benefit from) income taxes | 3,191 | (7,412 | ) | 6,255 | (2,619 | ) | |||||||||
| Interest expense (income), net | 9,774 | (947 | ) | 14,024 | 5,457 | ||||||||||
| Change in fair value of investments, net | 1,600 | 1,895 | 2,166 | (678 | ) | ||||||||||
| Other expense (income), net | 127 | 9 | 2 | (30 | ) | ||||||||||
| Depreciation, amortization and accretion(1) | 24,158 | 38,038 | 47,393 | 60,155 | |||||||||||
| EBITDA | $ | 16,951 | $ | 11,047 | $ | 13,588 | $ | 10,117 | |||||||
| Share-based compensation expense | 6,899 | 2,753 | 11,705 | 5,513 | |||||||||||
| Change in fair value of contingent consideration | 433 | (983 | ) | 926 | 1,317 | ||||||||||
| Gain on deconsolidation, net | (5,722 | ) | — | (5,722 | ) | — | |||||||||
| Impairment of long-lived assets, net | 2 | — | 6,330 | — | |||||||||||
| Non-recurring professional services and legal fees | 3,480 | 895 | 4,058 | 2,187 | |||||||||||
| Non-recurring salaries and personnel related expenses | 9 | — | 402 | — | |||||||||||
| Adjusted EBITDA | $ | 22,052 | $ | 13,712 | $ | 31,287 | $ | 19,134 | |||||||
| Cash portion of interest expense | (6,426 | ) | (5,922 | ) | (14,775 | ) | (11,905 | ) | |||||||
| Distributions to tax equity investors | (5,627 | ) | (5,255 | ) | (8,904 | ) | (8,487 | ) | |||||||
| FFO | $ | 9,999 | $ | 2,535 | $ | 7,608 | $ | (1,258 | ) | ||||||
| (1) Includes contract amortization, net in the amount of $3.5 million and $6.1 million for the three and six months ended June 30, 2024, respectively which are included in Contract amortization, net on the Consolidated Statements of Operations. Includes contract amortization, net in the amount of $4.8 million and $9.7 million for the three and six months ended June 30, 2024, 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.
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 excludes these distributions as the underlying source of distribution (collection of a loan) is not recorded within Adjusted EBITDA and is therefore not a component of our earnings from operations.
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:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Segment Adjusted EBITDA: | |||||||||||||||
| IPP Adjusted EBITDA | $ | 27,794 | $ | 21,283 | $ | 45,085 | $ | 36,803 | |||||||
| IM Adjusted EBITDA | 860 | (880 | ) | (300 | ) | (2,153 | ) | ||||||||
| Total Segment Adjusted EBITDA | $ | 28,654 | $ | 20,403 | $ | 44,785 | $ | 34,650 | |||||||
| Reconciliation: | |||||||||||||||
| Total Segment Adjusted EBITDA | $ | 28,654 | $ | 20,403 | $ | 44,785 | $ | 34,650 | |||||||
| Unallocated corporate expenses | (6,602 | ) | (6,691 | ) | (13,498 | ) | (15,516 | ) | |||||||
| Total Adjusted EBITDA | $ | 22,052 | $ | 13,712 | $ | 31,287 | $ | 19,134 | |||||||
| Less: | |||||||||||||||
| Share-based compensation expense | 6,899 | 2,753 | 11,705 | 5,513 | |||||||||||
| Change in fair value of contingent consideration | 433 | (983 | ) | 926 | 1,317 | ||||||||||
| Non-recurring professional services and legal fees | 3,480 | 895 | 4,058 | 2,187 | |||||||||||
| Non-recurring salaries and personnel related expenses | 9 | — | 402 | — | |||||||||||
| Depreciation, amortization and accretion(1) | 24,158 | 38,038 | 47,393 | 60,155 | |||||||||||
| Gain on deconsolidation, net | (5,722 | ) | — | (5,722 | ) | — | |||||||||
| Impairment of long-lived assets, net | 2 | — | 6,330 | — | |||||||||||
| Operating loss | $ | (7,207 | ) | $ | (26,991 | ) | $ | (33,805 | ) | $ | (50,038 | ) | |||
| Interest (expense) income, net | (9,774 | ) | 947 | (14,024 | ) | (5,457 | ) | ||||||||
| Change in fair value of investments, net | (1,600 | ) | (1,895 | ) | (2,166 | ) | 678 | ||||||||
| Other (expense) income, net | (127 | ) | (9 | ) | (2 | ) | 30 | ||||||||
| Loss before income taxes | $ | (18,708 | ) | $ | (27,948 | ) | $ | (49,997 | ) | $ | (54,787 | ) | |||
| (Provision for) benefit from income taxes | (3,191 | ) | 7,412 | (6,255 | ) | 2,619 | |||||||||
| Net loss | $ | (21,899 | ) | $ | (20,536 | ) | $ | (56,252 | ) | $ | (52,168 | ) | |||
| Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (11,073 | ) | (34,350 | ) | (36,947 | ) | (48,981 | ) | |||||||
| Net (loss) income attributable to Greenbacker Renewable Energy Company LLC | $ | (10,826 | ) | $ | 13,814 | $ | (19,305 | ) | $ | (3,187 | ) | ||||
| (1) Includes contract amortization, net in the amount of $3.5 million, $4.8 million, $6.1 million, and $9.7 million for the three months ended June 30, 2024 and 2023 and the six months ended June 30, 2024 and 2023, respectively, which are included in Contract amortization, net on the Consolidated Statements of Operations. | |||||||||||||||
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
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e31c88d4-b1e1-482a-9e9a-836c045e0f2a
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1 Past performance is not indicative of future results.
2 Total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”). The financial and portfolio metrics set forth herein are unaudited and subject to change. Data as of June 30, 2024.
3 Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release.
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 Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release, as well as Greenbacker's recent SEC filings and shareholder communication for more information regarding Key Factors Impacting Our Operating Results and Financial Condition, which include a number of factors that present significant opportunities for Greenbacker but also pose risks and challenges.
7 Compared with the estimated timeline included in Greenbacker’s first quarter results press release, the table reflects an overall net decrease of approximately 17 MW in GREC’s total fleet capacity. These MW largely represent assets which no longer align with the Company’s investment strategy and are negligible to GREC’s projected growth objectives and overall.
8 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. Data is as of June 30, 2024.
9 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. Data is as of June 30, 2024.
10 Green jobs are calculated from the International Renewable Energy Agency's measurement that one megawatt of renewable power supports approximately four jobs. Data is as of June 30, 2024.
