First Quarter Earnings Presentation
May 9, 2024
Cautionary Statements And Risk Factors
That May Affect Future Results
The following presentation for Altus Power, Inc. ("Altus Power" or the "Company") has been prepared by Altus Power's management. You should read the presentation together with our consolidated financial statements and related notes appearing in our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2024 (the "2023 Annual Report on Form 10-K"). Any references in this section to "we," "our" or "us" shall mean Altus Power. In addition to historical information, this presentation contains statements that are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of our plans, strategies and intentions, or our future performance or goals that are based upon management's current expectations. Our forward-looking statements can often be identified by the use of forward-looking terminology such as "aims," "believes," "expects," "intends," "may," "could," "will," "should," "plans," "projects," "forecasts," "seeks," "anticipates," "goal," "objective," "target," "estimate," "future," "outlook," "strategy," "vision," or variations of such words or similar terminology. Investors and prospective investors are cautioned that such forward-looking statements are only projections based on current estimations. These statements involve risks and uncertainties and are based upon various assumptions. Such risks and uncertainties include, but are not limited to, the risks as described in the "Risk Factors" in our 2023 Annual Report on Form 10-K These risks and uncertainties, among others, could cause our actual future results to differ materially from those described in our forward-looking statements or from our prior results. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks to circumstances only as of the date on which it is made. Except as required by applicable law, we are not obligated to update these forward-looking statements, even though our situation may change in the future.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Altus Power's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (1) the risk that pending acquisitions may not close in the anticipated timeframe or at all due to a closing condition not being met; (2) failure to obtain required consents or regulatory approvals in a timely manner or otherwise; (3) the ability of Altus Power to successfully integrate into its business and recognize the anticipated benefits of recently completed business combinations and related transactions and generate profit from their operations; (4) the ability of Altus Power to retain customers and maintain and expand relationships with business partners, suppliers and customers; (5) the risk of litigation and/or regulatory actions related to the proposed acquisition of solar assets; and (6) the possibility that Altus Power may be adversely affected by other economic, business, regulatory and/or competitive factors.
The presentation includes financial information not prepared in accordance with generally accepted accounting principles ("Non-GAAP Financial Measures"). A reconciliation of the Non-GAAP Financial Measures to financial information prepared in accordance with generally accepted accounting principles ("GAAP"), as required by Regulation G, appears in the presentation, except where there is no comparable GAAP financial measure. The Company is providing disclosure of the reconciliation of reported Non-GAAP Financial Measures used in the presentation, among other places, to its comparable financial measures on a GAAP basis. The Company believes that the Non-GAAP Financial Measures provide investors additional ways to view our operations, when considered with both our GAAP results and the reconciliation to net income and net cash provided by operating activities, which we believe provide a more complete understanding of our business than could be obtained absent this disclosure. We believe the Non-GAAP Financial Measures also provide investors a useful tool to assess shareholder value.
All rights to the trademarks, copyrights, logos and other intellectual property in this presentation belong to their respective owners and Altus Power's use thereof does not imply an affiliation with, or endorsement by the owners or such trademarks, copyrights, logos or other intellectual property.
Altus Power's earnings presentation for the first quarter ended March 31, 2023, which was held on May 9, 2024, is intended to assist in understanding information Altus Power's management discussed in that call. This presentation should be viewed in conjunction with the May 9, 2024, earnings call, a reply of which is available on Altus Power's website at www.altuspower.com, under Investor.
The information contained in the presentation is summary information that is intended to be considered in the context of the Company's SEC filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.
This presentation is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Altus Power and is not intended to form the basis of an investment decision in Altus Power. All subsequent written and oral forward-looking statements concerning Altus Power or other matters and attributable to Altus Power or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
2
Inflection of US Electricity Demand
Benefits from Increased Pressure on Retail Rates
Potential Organic Revenue Growth
Majority of our Contracts Have Direct Exposure to
Rising Utility Rates1
Demand for New Generation
Higher Retail Rates Enhance Economics of Altus
Systems for Potential Customers
5500
5300
5100
4900
4700
4500
4300
4100
3900
3700
3500
2003
US Electricity Consumption
(Trillions of KWH)
…Shifting to an expected Decade of Electrification3
Twenty Years of Flat
Electricity Demand…2
20232033
1 Reference to contracts with rates set at a fixed discount to prevailing utility rate | |
2EIA Data. | 3 |
3 NERC Forecast |
First Quarter Earnings Summary
Operating Revenues
($MM)
$40.7
$29.4
Q123Q124
Net Income*
Q124 $4.1 million
Q123 $3.8 million
Adjusted EBITDA1
($MM)
$19.7
$16.0
Q123Q124
Generation
(Billions of kWh)
210,000
137,000
Q123Q124
*GAAP Net Income figures include non-cash gain from remeasurement of alignment shares of $17.0M and $26.1M for 1Q23 and 1Q24, respectively. | 4 |
1Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please see Financial Statements in the Appendix for a reconciliation to the most directly comparable GAAP measures. | |
Altus Power Portfolio Comprises 981 Megawatts Across 25 States1
Recent Highlights
- Closing of 84 megawatt Vitol portfolio in Northeast
- Added ~4,000 Community Solar subscribers, total now over 24,000
- ~290 megawatts of assets to serve Community Solar customers
State | MWs | % |
New York | 205 | 21% |
New Jersey | 177 | 18% |
Massachusetts | 150 | 15% |
California | 120 | 12% |
North Carolina | 67 | 7% |
Minnesota | 60 | 6% |
South Carolina | 42 | 4% |
Hawaii | 34 | 4% |
Nevada | 21 | 2% |
All other | 105 | 11% |
Total | 981 | 100% |
1As of March 31, 2023 | 5 |
Pipeline Review
Progress Update
Altus Origination - Western US
Colorado & California
- Initial projects entering construction and pre-construction
CBRE Investment Management | • | 14 megawatts now in construction and pre-construction | |||
Maryland | • | Expected to serve 2,000 Community Solar customers | |||
CBRE Customers | • | Additional new build opportunities in discussion | |||
Illinois | |||||
Operating Acquisitions | • | ~100-150 megawatts of opportunities currently under evaluation | |||
Across the US | |||||
Updating Pipeline
o Revisiting new customer engagement strategy with a focus on execution certainty o Assessing timelines to execute on programmatic customer relationships
6
First Quarter Results
Revenue ($M)
$29.4 | $40.7 |
1Q 2023 | 1Q 2024 |
Net Income ($M)*
1Q 2023 | 1Q 2024 |
$3.8 | $4.1 |
Adjusted EBITDA1 ($M)
$16.0 | $19.7 |
1Q 2023 | 1Q 2024 |
*GAAP Net Income figures include non-cash (loss) and gain from remeasurement of alignment shares of $17.0M and $26.1M for 1Q 2023 and 1Q 2024, respectively.
1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please see Financial Statements in the Appendix for a reconciliation to the most directly comparable GAAP measures.
7
ARR1 Update & 2024 Guidance
ARR and Generation As of 3/31/24
S | $196 million of annual |
recurring revenue (ARR) |
1,160,000 kilowatt-hours
2024 Guidance Ranges
$200-222
Million
$115-135
Million
1
Revenue | Adjusted EBITDA2 |
Key Variables
Generation - range of irradiance, including the 2023 scenario Timing of new asset additions throughout the year
1 ARR is an estimate that management uses to determine the expected annual revenue potential of our operating asset base at the end of a calendar year. ARR assumes customary weather, production, expenses and other | 8 |
economic and market conditions, as well as seasonality. It is not derived from a GAAP financial measure so it is difficult to provide a meaningful reconciliation to GAAP. Please see the Appendix for additional disclosures |
2. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please see Financial Statements in the Appendix for a reconciliation to the most directly comparable GAAP measures.
Historical Seasonality Of Revenues
Historical Quarterly Revenue Distribution
Q1 between
18%-20%
of Revenues
Q2 between
25%-29%
of Revenues
Q3 between
29%-31%
of Revenues
Q4 between
22%-26%
of Revenues
9
2024 Expected Financing Plan
Sources of Financing
for New Builds
Blackstone
Term Funding Facility
60-70%
of Asset Cost
Tax Equity1
30%
of Asset Cost
Cash
0-10% of Asset Cost
$204 millionquarter-end Cash Balance2
$168 millionof capacity on Blackstone Construction Facility
$115 millionof capacity on Corporate Revolver (for working capital) Expected significant Cash Generation during remainder of 2024
1 Tax equity available for new-build projects | 10 |
2 Cash, cash equivalents and restricted cash as of March 31, 2024
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Disclaimer
Altus Power Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 21:20:58 UTC.