SAN FRANCISCO, March 2, 2015 /CNW/ -- Pattern Energy Group Inc.
(the "Company" or "Pattern Energy") (NASDAQ: PEGI) (TSX: PEG) today
announced its financial results for the fourth quarter and full
year of 2014.
Highlights
(Comparisons made between fiscal 2014
and fiscal 2013 results, unless otherwise noted)
- Cash available for distribution (CAFD) of $62.1 million, up 46%
- Adjusted EBITDA of $198.1
million, up 40%
- Proportional GWh sold of 2,915 GWh, up 65%
- Revenue of $265.5 million, up
32%
- Declared a first quarter dividend of $0.342 per Class A common share or $1.368 on an annualized basis, subsequent to the
end of the period, representing a 2% increase over the previous
quarter's dividend
- Acquired Panhandle 2 and Logan's Gap from Pattern Development,
expanding its portfolio to 1,636 MW in owned capacity and 12 wind
projects
- Initiated commercial operations at two projects; Panhandle 2,
with an owned capacity of 147 MW, and Grand Renewable, with an
owned capacity of 67 MW
- Added three new projects to the identified Right of First Offer
(ROFO) list for a total of 977 MW owned capacity; Henvey Inlet and,
subsequent to the end of the period, Amazon Web Services Wind Farm
(Fowler Ridge) and Mont Sainte-Marguerite
- Pattern Development acquired a majority stake in Tokyo-based Green Power Investment Corporation
(GPI), subsequent to the end of the period, which has more than
1,000 MW in near and longer term wind and solar projects in
development and Pattern Development's interest in GPI's projects is
subject to Pattern Energy's ROFO
- Pattern Development signed a joint venture agreement with CEMEX
Energia, a subsidiary of CEMX S.A.B. (NYSE: CX), subsequent to the
end of the period, to develop renewable energy projects throughout
Mexico and Pattern Development's
interest in the joint venture's projects is subject to Pattern
Energy's ROFO
- Completed a $351 million
follow-on primary and secondary equity offering, subsequent to the
end of the period
"The $62.1 million in cash
available for distribution we reported for 2014 exceeds the target
we outlined during the IPO. This positive momentum reflects the
continuous growth we have demonstrated in our portfolio, which now
stands at 1,636 MW in owned capacity – up 57% since the IPO – as
well as in our identified ROFO list, which has grown by 781 MW in
owned capacity – an increase of 105% since the IPO," said
Mike Garland, President and CEO of
Pattern Energy. "At the same time, Pattern Development is also
expanding our reach by entering new markets, like Japan and Mexico through its relationships with GPI and
CEMEX, and contracting with new power buyers, like Walmart and
Amazon. Our high-quality operating portfolio and the clear path for
growth from our ROFO list underpin our stable and growing cash
flow."
Financial Results
Pattern Energy sold 888,577 MWh of
electricity on a proportional basis in the fourth quarter of 2014
compared to 440,623 MWh sold in the same period in 2013. Pattern
Energy sold 2,914,810 MWh of electricity on a proportional basis
for the full year 2014 compared to 1,771,772 MWh sold in 2013. The
increases were primarily attributable to the commencement of
commercial operations at South Kent, El Arrayan, Panhandle 1 and
Panhandle 2 at various times during the year and the twelve-month
figure also reflects an increase in production from an additional
42 MW at Ocotillo for the full year of 2014.
Net loss was $16.0 million in the
fourth quarter of 2014 compared to $19.4
million in the same period last year. Net loss was
$40.0 million for the full year 2014
compared to net income of $10.1
million in 2013. The change in the full year results was due
primarily to unrealized losses on interest rate and energy
derivatives (including the Company's proportion of the unrealized
losses at its unconsolidated investments) which increased by
$54.1 million for the year.
Adjusted EBITDA was $57.7 million
for the fourth quarter of 2014 compared to $29.4 million in the same period last year.
Adjusted EBITDA was $198.1 million
for the full year 2014 compared to $141.8
million in 2013. A reconciliation of Adjusted EBITDA to net
(loss) income determined in accordance with GAAP is shown
below.
Cash available for distribution was $17.3
million in the fourth quarter of 2014 compared to
$5.6 million in the same period last
year. Cash available for distribution was $62.1 million for the full year 2014 compared to
$42.6 million in 2013. The
$11.7 million and $19.5 million increases, in the respective
periods, were primarily the result of higher revenue primarily
attributable to the commencement of commercial operations at both
the El Arrayan and Panhandle 1 projects in June 2014 and a distribution from unconsolidated
investments, as well as, increased production at Ocotillo which
impacted the full year period. A reconciliation of cash available
for distribution to net cash provided by operating activities
determined in accordance with GAAP is shown below.
Quarterly Dividend
Pattern Energy declared an
increased dividend for the first quarter 2015, payable on
April 30, 2015, to holders of record
on March 31, 2015, in the amount of
$0.342 per Class A share, which
represents $1.368 on an annualized
basis. This is a 2% increase from the fourth quarter 2014 dividend
of $0.335.
Construction Pipeline
Two projects completed
construction and reached their commercial operation date on
schedule during the fourth quarter of 2014. Pattern Energy acquired
147 MW of the 182 MW Panhandle 2 project at the time of commercial
operation in November as agreed upon with Pattern Development.
Pattern Energy also owns a 67 MW interest in the 149 MW Grand
Renewable project which reached commercial operation in
December.
Pattern Energy currently has one project in construction as
detailed below.
Asset
|
Location
|
Owned
MW
|
Commercial
Operation
|
Logan's
Gap
|
Texas
|
164
|
Q4 2015
|
Acquisition Pipeline
Pattern Energy has the Right of
First Offer (ROFO) on a pipeline of acquisition opportunities from
Pattern Development. In addition, Pattern Energy may seek to
acquire assets from third parties.
Since the beginning of the fourth quarter, Pattern Energy
announced the addition of three new projects to its list of
identified ROFO projects from Pattern Development, consisting of
150 MW of the 300 MW Henvey Inlet Wind project in November, 116 MW
of the 150 MW Amazon Web Services Wind project (Fowler Ridge) in
January and the 147 MW Mont Sainte Marguerite Wind project in
February. With these new additions, the identified ROFO list now
consists of nine projects with a rated capacity of 1,719 MW and a
total owned capacity of 977 MW.
The Henvey Inlet Wind project, to be built in Parry Sound
County, Ontario, is a 50/50 joint
venture partnership between Pattern Development and Nigig Power
Corporation, which is wholly owned by Henvey Inlet First Nation.
The Project has a 20-year power purchase agreement (PPA) with the
Independent Electricity System Operator (IESO), formerly known as
Ontario Power Authority, for 100% of its expected production.
Pattern Development expects to arrange both construction and
long-term debt financing for Henvey Inlet in 2016. Upon completion,
it will be the largest First Nation wind project in Ontario.
The Amazon Web Services Wind Farm (Fowler Ridge), which is
located in Benton County, Indiana,
has a 13-year PPA to supply Amazon Web Services, an Amazon.com
company, with electricity. Pattern Development currently owns 100%
of the 150 MW project and it is anticipated that Pattern Energy
will acquire 116 MW of owned interest, with tax equity investors
acquiring the balance. Pattern Development expects to begin
construction of the Amazon Web Services Wind Farm (Fowler Ridge)
project in April and anticipates reaching commercial operation in
late 2015 or early 2016.
The Mont Sainte-Marguerite Wind project, which is located
approximately 50 kilometers south of Quebec City in the Chaudiere-Appalaches
region, has entered into a 25-year power PPA with
Hydro-Quebec. Pattern Development
currently owns 100% of the 147 MW project and it is anticipated
that Pattern Energy will acquire the full owned interest in the
project. Pattern Development expects to begin construction of the
project in the third quarter of 2016 and anticipates reaching
commercial operation in December
2017.
The list of identified ROFO projects represents a portion of
Pattern Development's 4,500 MW pipeline of development projects,
all of which are subject to Pattern Energy's ROFO. The
4,500 MW include Pattern Development's interests in both its
recently acquired majority stake in Tokyo-based GPI and its recently announced
joint venture with CEMEX Energia in Mexico. GPI has up to 1,000 MW of near and
longer term wind and solar projects in development. The joint
venture between Pattern Development and CEMEX Energia has a goal of
developing 1,000 MW of wind and solar generation in Mexico over the next five years where recent
reforms set a mandate of 35% of generation to come from clean
resources by 2024.
The table below sets forth the current list of identified ROFO
projects:
Asset
|
Location
|
Owned
MW
|
Commercial
Operations
|
Gulf Wind
|
Texas
|
76
|
Operational
|
K2
|
Ontario
|
90
|
2015
(In
construction)
|
Armow
|
Ontario
|
90
|
2015
(In
construction)
|
Meikle
|
British
Columbia
|
185
|
2016
(Ready for
financing)
|
Conejo
Solar
|
Chile
|
73
|
2016
(Ready for
financing)
|
Belle
River
|
Ontario
|
50
|
2017
(Securing final
permits)
|
Henvey
Inlet
|
Ontario
|
150
|
2017
(Late-stage
development)
|
Amazon
(Fowler
Ridge)
|
Indiana
|
116
|
2015 /
2016
(Ready for
financing)
|
Mont
Sainte-Marguerite
|
Quebec
|
147
|
2017 /
2018
(Late-stage
development)
|
Total
|
|
977
|
|
Adjusted EBITDA and Cash Available for Distribution
Reconciliations
The following tables reconcile net (loss)
income to Adjusted EBITDA and net cash provided by operating
activities to cash available for distribution, respectively, for
the periods presented (in thousands):
|
|
Three Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net (loss)
income
|
|
$
(15,986)
|
|
$
(19,376)
|
|
$
(39,999)
|
|
$
10,072
|
Plus:
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
19,044
|
|
15,186
|
|
66,729
|
|
61,118
|
Tax
provision
|
|
4,641
|
|
11,347
|
|
3,136
|
|
4,546
|
Depreciation and
accretion
|
|
31,941
|
|
21,422
|
|
104,417
|
|
83,180
|
EBITDA
|
|
$
39,640
|
|
$
28,579
|
|
$
134,283
|
|
$
158,916
|
Unrealized (gain)
loss on energy derivative
|
|
(7,265)
|
|
6,050
|
|
3,878
|
|
11,272
|
Unrealized loss
(gain) on derivatives
|
|
5,069
|
|
(4,692)
|
|
11,668
|
|
(15,601)
|
Interest rate
derivative settlements
|
|
993
|
|
1,040
|
|
4,075
|
|
2,099
|
Net loss (gain) on
transactions
|
|
626
|
|
1,205
|
|
(13,843)
|
|
(5,995)
|
Plus, proportionate
share from equity accounted investments:
|
|
|
|
|
|
|
|
|
Interest
expense, net of interest income
|
|
4,884
|
|
228
|
|
14,081
|
|
267
|
Tax (benefit)
provision
|
|
-
|
|
(88)
|
|
102
|
|
(172)
|
Depreciation and
accretion
|
|
4,697
|
|
6
|
|
13,720
|
|
20
|
Unrealized loss
(gain) on interest rate and currency derivatives
|
|
9,080
|
|
(2,985)
|
|
30,126
|
|
(9,076)
|
Realized loss on
interest rate and currency derivatives
|
|
-
|
|
74
|
|
22
|
|
39
|
Adjusted
EBITDA
|
|
$
57,724
|
|
$
29,417
|
|
$
198,112
|
|
$
141,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net cash provided by
operating activities
|
|
$
26,548
|
|
$
9,756
|
|
$
110,448
|
|
$
78,152
|
Changes in current
operating assets and liabilities
|
|
(1,282)
|
|
5,233
|
|
(9,002)
|
|
8,237
|
Network upgrade
reimbursement
|
|
-
|
|
618
|
|
2,472
|
|
1,854
|
Use of operating cash
to fund maintenance and debt reserves
|
|
-
|
|
-
|
|
-
|
|
-
|
Release of restricted
cash to fund general and administrative costs
|
|
13
|
|
318
|
|
223
|
|
318
|
Operations and
maintenance capital expenditures
|
|
(133)
|
|
(388)
|
|
(267)
|
|
(819)
|
Transaction costs for
acquisitions
|
|
602
|
|
-
|
|
1,730
|
|
-
|
Distributions from
unconsolidated investment
|
|
3,187
|
|
-
|
|
7,891
|
|
-
|
Less:
|
|
|
|
|
|
|
|
|
Distributions to
noncontrolling interests
|
|
(630)
|
|
(866)
|
|
(2,100)
|
|
(2,292)
|
Principal payments
paid from operating cash flows
|
|
(11,001)
|
|
(9,041)
|
|
(49,246)
|
|
(42,829)
|
Cash available for
distribution
|
|
$
17,304
|
|
$
5,630
|
|
$
62,149
|
|
$
42,621
|
Conference Call and Webcast
Pattern Energy will host
a conference call and webcast to discuss these results at
10:30 a.m. Eastern Time on
Monday, March 2, 2015. Mike Garland, President and CEO, and
Mike Lyon, CFO, will co-chair the
call. Participants should call (416) 260-0113 or (800) 524-8950 and
ask an operator for the Pattern Energy earnings call. Please dial
in 10 minutes prior to the call to secure a line. A replay will be
available shortly after the call. To access the replay, please dial
(647) 436-0148 or (888) 203-1112 and enter access code 7127191. The
replay recording will be available until 11:59 p.m. Eastern Time, March 9, 2015.
A live webcast of the conference call will be also available on
the events page in the investor section of Pattern's website at
www.patternenergy.com. An archived webcast will be available for
one year.
About Pattern Energy
Pattern Energy Group Inc. is an
independent power company listed on the NASDAQ ("PEGI") and Toronto
Stock Exchange ("PEG"). Pattern Energy has a portfolio of 12 wind
power projects, with a total owned interest of 1,636 MW, in
the United States, Canada and Chile that use proven, best-in-class
technology. Pattern Energy's wind power projects generate stable
long-term cash flows in attractive markets and provide a solid
foundation for the continued growth of the business.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian
securities laws, including statements regarding the ability of the
operating portfolio to underpin stable growth, the ability of the
ROFO list to provide a path to growth and grow cash flow, the
anticipated dates to arrange construction and long term debt
financing for Henvey Inlet, the anticipated construction start and
commercial operations dates of the Amazon Wind Services Wind Farm
and the Mont Sainte-Marguerite Wind Project, and the amount of MW
the Pattern Development-CEMEX Energia joint venture can develop in
the next five years. These forward-looking statements
represent the Company's expectations or beliefs concerning future
events, and it is possible that the results described in this press
release will not be achieved. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Company's control, which could cause actual
results to differ materially from the results discussed in the
forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in the
Company's annual report on Form 10-K. The risk factors and other
factors noted therein could cause actual events or the Company's
actual results to differ materially from those contained in any
forward-looking statement.
Contacts:
Media
Relations
Matt
Dallas
917-363-1333
matt.dallas@patternenergy.com
|
Investor
Relations
Sarah
Webster
415-283-4076
sarah.webster@patternenergy.com
|
Pattern Energy
Group Inc.
|
Consolidated
Balance Sheets
|
(In thousands of
U.S. dollars, except share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
101,656
|
|
$
103,569
|
Restricted
cash
|
|
7,945
|
|
-
|
Trade
receivables
|
|
35,759
|
|
20,951
|
Related party
receivable
|
|
671
|
|
167
|
Reimbursable
interconnection costs
|
|
2,532
|
|
3,967
|
Derivative assets,
current
|
|
18,506
|
|
13,937
|
Current deferred tax
assets
|
|
318
|
|
573
|
Prepaid expenses and
other current assets
|
|
27,954
|
|
11,415
|
Deferred financing
costs, current, net of accumulated amortization of $22,749 and
$16,225 as of December 31, 2014 and 2013, respectively
|
|
13,615
|
|
5,456
|
Total current
assets
|
|
208,956
|
|
160,035
|
|
|
|
|
|
Restricted
cash
|
|
39,745
|
|
32,636
|
Turbine
advances
|
|
79,637
|
|
-
|
Construction in
progress
|
|
26,195
|
|
-
|
Property, plant and
equipment, net of accumulated depreciation of $278,291
|
|
|
|
|
and $179,778 as of
December 31, 2014 and 2013, respectively
|
|
2,350,856
|
|
1,476,142
|
Unconsolidated
investments
|
|
29,079
|
|
107,055
|
Derivative
assets
|
|
49,369
|
|
82,167
|
Deferred financing
costs
|
|
30,053
|
|
30,336
|
Net deferred tax
assets
|
|
5,474
|
|
2,017
|
Other
assets
|
|
12,678
|
|
13,243
|
Total
assets
|
|
$
2,832,042
|
|
$
1,903,631
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
|
$
24,793
|
|
$
15,550
|
Accrued construction
costs
|
|
20,132
|
|
3,204
|
Related party
payable
|
|
5,757
|
|
1,245
|
Accrued
interest
|
|
3,634
|
|
495
|
Dividend
payable
|
|
15,734
|
|
11,103
|
Derivative
liabilities, current
|
|
16,307
|
|
16,171
|
Revolving credit
facility
|
|
50,000
|
|
-
|
Current portion of
long-term debt
|
|
121,561
|
|
48,851
|
Current net deferred
tax liabilities
|
|
149
|
|
-
|
Current portion of
contingent liabilities
|
|
4,000
|
|
-
|
Total current
liabilities
|
|
262,067
|
|
96,619
|
|
|
|
|
|
Long-term
debt
|
|
1,329,052
|
|
1,200,367
|
Derivative
liabilities
|
|
17,467
|
|
7,439
|
Asset retirement
obligations
|
|
29,272
|
|
20,834
|
Net deferred tax
liabilities
|
|
20,418
|
|
9,930
|
Other long-term
liabilities
|
|
9,032
|
|
438
|
Total
liabilities
|
|
1,667,308
|
|
1,335,627
|
|
|
|
|
|
Equity:
|
|
|
|
|
Class A common stock,
$0.01 par value per share: 500,000,000 shares authorized;
62,088,306 and 35,531,720 shares issued as of December 31, 2014 and
2013, respectively; 62,062,841 and 35,530,786 shares outstanding as
of December 31, 2014 and 2013, respectively
|
|
621
|
|
355
|
Class B convertible
common stock, $0.01 par value per share: 20,000,000 shares
authorized; 0 and 15,555,000 shares issued as of December 31, 2014
and 2013, respectively; 0 and 15,555,000 outstanding as of December
31, 2014 and 2013, respectively
|
|
-
|
|
156
|
Additional paid-in
capital
|
|
723,938
|
|
489,412
|
Accumulated
loss
|
|
(44,626)
|
|
(13,336)
|
Accumulated other
comprehensive loss
|
|
(45,068)
|
|
(8,353)
|
Treasury stock, at
cost; 25,465 and 934 shares of Class A common stock as of December
31, 2014 and 2013, respectively
|
|
(717)
|
|
(24)
|
Total equity before
noncontrolling interest
|
|
634,148
|
|
468,210
|
Noncontrolling
interest
|
|
530,586
|
|
99,794
|
Total
equity
|
|
1,164,734
|
|
568,004
|
Total liabilities and
equity
|
|
$
2,832,042
|
|
$
1,903,631
|
Pattern Energy
Group Inc.
|
Consolidated
Statements of Operations
|
(In thousands of
U.S. dollars, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenue:
|
|
|
|
|
|
|
|
|
Electricity
sales
|
|
$
60,847
|
|
$
42,737
|
|
$
245,022
|
|
$
173,270
|
Energy derivative
settlements
|
|
4,216
|
|
3,925
|
|
13,525
|
|
16,798
|
Unrealized gain
(loss) on energy derivative
|
|
7,265
|
|
(6,050)
|
|
(3,878)
|
|
(11,272)
|
Related party
revenue
|
|
987
|
|
446
|
|
3,317
|
|
911
|
Other
revenue
|
|
6,103
|
|
709
|
|
7,507
|
|
21,866
|
Total
revenue
|
|
79,418
|
|
41,767
|
|
265,493
|
|
201,573
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Project
expense
|
|
21,166
|
|
15,616
|
|
77,775
|
|
57,677
|
Depreciation and
accretion
|
|
31,941
|
|
21,422
|
|
104,417
|
|
83,180
|
Total cost of
revenue
|
|
53,107
|
|
37,038
|
|
182,192
|
|
140,857
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
26,311
|
|
4,729
|
|
83,301
|
|
60,716
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
6,570
|
|
4,256
|
|
22,533
|
|
4,819
|
Related party general
and administrative
|
|
1,632
|
|
(799)
|
|
5,787
|
|
8,169
|
Total operating
expenses
|
|
8,202
|
|
3,457
|
|
28,320
|
|
12,988
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
18,109
|
|
1,272
|
|
54,981
|
|
47,728
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(19,267)
|
|
(15,445)
|
|
(67,694)
|
|
(63,614)
|
Interest rate
derivative settlements
|
|
(993)
|
|
(1,040)
|
|
(4,075)
|
|
(2,099)
|
Unrealized (loss)
gain on derivatives
|
|
(5,069)
|
|
4,692
|
|
(11,668)
|
|
15,601
|
Equity in (losses)
earnings in unconsolidated investments
|
|
(4,057)
|
|
2,658
|
|
(25,295)
|
|
7,846
|
Related party
income
|
|
876
|
|
665
|
|
2,612
|
|
665
|
Net (loss) gain on
transactions
|
|
(626)
|
|
(1,205)
|
|
13,843
|
|
5,995
|
Other (expense)
income, net
|
|
(318)
|
|
373
|
|
433
|
|
2,496
|
Total other
expense
|
|
(29,454)
|
|
(9,302)
|
|
(91,844)
|
|
(33,110)
|
|
|
|
|
|
|
|
|
|
Net (loss) income
before income tax
|
|
(11,345)
|
|
(8,030)
|
|
(36,863)
|
|
14,618
|
Tax
provision
|
|
4,641
|
|
11,346
|
|
3,136
|
|
4,546
|
Net (loss)
income
|
|
(15,986)
|
|
(19,376)
|
|
(39,999)
|
|
10,072
|
Net income (loss)
attributable to noncontrolling interest
|
|
4,406
|
|
(6,197)
|
|
(8,709)
|
|
(6,887)
|
Net (loss) income
attributable to controlling interest
|
|
$
(20,392)
|
|
$
(13,179)
|
|
$
(31,290)
|
|
$
16,959
|
|
|
|
|
|
|
|
|
|
Earnings per share
information:
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to controlling interest prior to the IPO on October 2,
2013
|
|
(157)
|
|
|
|
(30,295)
|
Net loss attributable
to controlling interest subsequent to the IPO
|
|
$
(13,336)
|
|
|
|
$
(13,336)
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared on Class A common shares
|
|
(15,581)
|
|
(11,103)
|
|
(56,976)
|
|
(11,103)
|
Deemed dividends on
Class B common shares
|
|
(7,222)
|
|
-
|
|
(21,901)
|
|
-
|
Net loss attributable
to common stockholders
|
|
$
(43,195)
|
|
$
(24,439)
|
|
$
(110,167)
|
|
$
(24,439)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares:
|
|
|
|
|
|
|
|
|
Class A common stock
- Basic and diluted
|
|
46,335,288
|
|
35,448,056
|
|
42,361,959
|
|
35,448,056
|
Class B common stock
- Basic and diluted
|
|
15,555,000
|
|
15,555,000
|
|
15,555,000
|
|
15,555,000
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Class A common
stock:
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
|
$
(0.36)
|
|
$
(0.17)
|
|
$
(0.56)
|
|
$
(0.17)
|
|
|
|
|
|
|
|
|
|
Class B common
stock:
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
|
$
(0.23)
|
|
$
(0.48)
|
|
$
(0.49)
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per Class A common share
|
|
$
0.34
|
|
$
0.31
|
|
$
1.30
|
|
$
0.31
|
Deemed dividends per
Class B common share
|
|
$
0.46
|
|
$
-
|
|
$
1.41
|
|
$
-
|
Pattern Energy
Group Inc.
|
Consolidated
Statements of Cash Flows
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(15,986)
|
|
$
(19,376)
|
|
$
(39,999)
|
|
$
10,072
|
Adjustments to
reconcile net (loss) income to net cash
|
|
|
|
|
|
|
|
|
provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
accretion
|
|
31,941
|
|
21,422
|
|
104,417
|
|
83,180
|
Amortization of
financing costs
|
|
2,063
|
|
1,388
|
|
6,309
|
|
6,816
|
Unrealized (gain)
loss on derivatives
|
|
(2,196)
|
|
1,358
|
|
15,546
|
|
(4,329)
|
Stock-based
compensation
|
|
977
|
|
511
|
|
4,105
|
|
511
|
Net gain on
transactions
|
|
-
|
|
1,205
|
|
(16,526)
|
|
(5,995)
|
Deferred
taxes
|
|
4,453
|
|
11,347
|
|
2,948
|
|
4,546
|
Equity in losses
(earnings) in unconsolidated investments
|
|
4,057
|
|
(2,658)
|
|
25,295
|
|
(7,846)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
(3,000)
|
|
(786)
|
|
(8,255)
|
|
(8,721)
|
Reimbursable
interconnection receivable
|
|
-
|
|
(11)
|
|
-
|
|
(11)
|
Prepaid expenses and
other current assets
|
|
(351)
|
|
695
|
|
12,916
|
|
(2,698)
|
Other assets
(non-current)
|
|
(146)
|
|
(208)
|
|
(649)
|
|
(566)
|
Accounts payable and
other accrued liabilities
|
|
2,153
|
|
(1,826)
|
|
3,667
|
|
3,036
|
Related party
receivable/payable
|
|
75
|
|
481
|
|
(942)
|
|
190
|
Accrued interest
payable
|
|
2,294
|
|
(890)
|
|
1,377
|
|
(33)
|
Long-term
liabilities
|
|
214
|
|
(2,896)
|
|
239
|
|
-
|
Net cash provided by
operating activities
|
|
26,548
|
|
9,756
|
|
110,448
|
|
78,152
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Receipt of ITC Cash
Grant
|
|
-
|
|
-
|
|
-
|
|
173,446
|
Cash paid for
acquisitions, net of cash acquired
|
|
(138,999)
|
|
(30,070)
|
|
(306,584)
|
|
(30,070)
|
Proceeds from sale of
investments
|
|
-
|
|
-
|
|
-
|
|
14,254
|
Decrease in
restricted cash
|
|
22,839
|
|
2,785
|
|
46,700
|
|
66,517
|
Increase in
restricted cash
|
|
(30,384)
|
|
(2)
|
|
(40,790)
|
|
(80,569)
|
Capital
expenditures
|
|
(100,891)
|
|
(2,552)
|
|
(119,506)
|
|
(123,517)
|
Deferred development
costs
|
|
-
|
|
-
|
|
-
|
|
(528)
|
Distribution from
unconsolidated investments
|
|
4,915
|
|
-
|
|
22,019
|
|
10,463
|
Contribution to
unconsolidated investments
|
|
(331)
|
|
(941)
|
|
(2,651)
|
|
(9,678)
|
Reimbursable
interconnection receivable
|
|
2,474
|
|
-
|
|
3,892
|
|
49,715
|
Other assets
(non-current)
|
|
15,068
|
|
618
|
|
17,540
|
|
2,358
|
Net cash (used in)
provided by investing activities
|
|
(225,309)
|
|
(30,162)
|
|
(379,380)
|
|
72,391
|
Pattern Energy
Group Inc.
|
Consolidated
Statements of Cash Flows
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from public
offering, net of expenses
|
|
$
(77)
|
|
$
317,926
|
|
$
286,757
|
|
$
317,926
|
Proceeds from
exercise of stock options
|
|
54
|
|
-
|
|
327
|
|
-
|
Repurchase of shares
for employee tax withholding
|
|
(313)
|
|
(24)
|
|
(693)
|
|
(24)
|
Dividends
paid
|
|
(15,240)
|
|
-
|
|
(52,344)
|
|
-
|
Payment for
acquisition from Pattern Development
|
|
-
|
|
(49,430)
|
|
-
|
|
(49,430)
|
Capital distributions
- Contribution Transactions
|
|
-
|
|
(232,640)
|
|
-
|
|
(232,640)
|
Capital contributions
- Pattern Development
|
|
-
|
|
-
|
|
-
|
|
32,679
|
Capital contributions
- noncontrolling interest
|
|
198,255
|
|
-
|
|
200,805
|
|
-
|
Capital distributions
- Pattern Development
|
|
-
|
|
-
|
|
-
|
|
(98,886)
|
Capital distributions
- noncontrolling interest
|
|
(630)
|
|
(866)
|
|
(2,100)
|
|
(2,292)
|
Decrease in
restricted cash
|
|
6,119
|
|
6,035
|
|
19,627
|
|
122,689
|
Increase in
restricted cash
|
|
(4,395)
|
|
(894)
|
|
(17,903)
|
|
(127,369)
|
Deposit for letters
of credit
|
|
(3,422)
|
|
-
|
|
(3,422)
|
|
-
|
Payment for deferred
financing costs
|
|
(11,253)
|
|
-
|
|
(11,856)
|
|
(294)
|
Payment for deferred
equity issuance costs
|
|
(550)
|
|
-
|
|
(550)
|
|
-
|
Proceeds from
revolving credit facility
|
|
50,000
|
|
-
|
|
50,000
|
|
56,000
|
Repayment of
revolving credit facility
|
|
-
|
|
(56,000)
|
|
-
|
|
(56,000)
|
Repayment of
short-term debt
|
|
(195,351)
|
|
-
|
|
(210,191)
|
|
-
|
Proceeds from
short-term debt
|
|
58,691
|
|
-
|
|
59,778
|
|
-
|
Repayment of
long-term debt
|
|
(11,001)
|
|
(9,041)
|
|
(49,246)
|
|
(50,324)
|
Proceeds from
long-term debt
|
|
-
|
|
-
|
|
-
|
|
138,620
|
Repayment of
construction and grant loans
|
|
-
|
|
-
|
|
-
|
|
(114,056)
|
Net cash provided by
(used in) financing activities
|
|
70,887
|
|
(24,934)
|
|
268,989
|
|
(63,401)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(1,128)
|
|
(181)
|
|
(1,970)
|
|
(1,147)
|
Net change in cash
and cash equivalents
|
|
(129,002)
|
|
(45,521)
|
|
(1,913)
|
|
85,995
|
Cash and cash
equivalents at beginning of period
|
|
230,658
|
|
149,090
|
|
103,569
|
|
17,574
|
Cash and cash
equivalents at end of period
|
|
$
101,656
|
|
$
103,569
|
|
$
101,656
|
|
$
103,569
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure
|
|
|
|
|
|
|
|
|
Cash payments for
income taxes
|
|
$
131
|
|
$
-
|
|
$
131
|
|
$
-
|
Cash payments for
interest expenses, net of capitalized interest
|
|
14,012
|
|
11,386
|
|
53,776
|
|
53,295
|
Acquired capitalized
assets for El Arrayán, Panhandle 1, Panhandle 2, and Logan's
Gap
|
|
338,622
|
|
-
|
|
1,013,365
|
|
-
|
Schedule of
non-cash activities
|
|
|
|
|
|
|
|
|
Change in fair value
of designated interest rate swaps
|
|
(10,604)
|
|
9,389
|
|
(22,847)
|
|
36,875
|
Amortization of
deferred financing costs - included as construction in
progress
|
343
|
|
-
|
|
343
|
|
175
|
Change in property,
plant and equipment
|
|
(23,333)
|
|
(11,018)
|
|
(47,908)
|
|
(109,281)
|
Transfer of
capitalized assets to South Kent joint venture
|
|
-
|
|
-
|
|
-
|
|
49,275
|
Non-cash distribution
to Pattern Development
|
|
-
|
|
-
|
|
-
|
|
(5,748)
|
Assumption of
contingent liability related to Contribution
Transactions
|
|
-
|
|
(4,207)
|
|
-
|
|
(4,207)
|
Assumption of
contingent liability upon acquisition of Logan's Gap
|
|
(4,000)
|
|
-
|
|
(4,000)
|
|
-
|
Accrued IPO stock
issuance costs
|
|
-
|
|
(884)
|
|
-
|
|
(884)
|
Non-cash deemed
dividends on Class B convertible common stock
|
|
7,222
|
|
-
|
|
21,901
|
|
-
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pattern-energy-reports-fourth-quarter-and-full-year-2014-financial-results-300043377.html
SOURCE Pattern Energy Group Inc.