Greenbacker delivers second quarter results
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)
SecondQuarter2024
SecondQuarter2023
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
SecondQuarter2024
SecondQuarter2023
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 MeasuresIn 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 OperationsFFO 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 DisclosureThis 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
