8point3 Energy Partners Reports Third Quarter 2017 Results
SAN JOSE, Calif., Oct. 4, 2017 /PRNewswire/ -- 8point3 Energy Partners LP (NASDAQ:CAFD) today announced financial results for its third fiscal quarter ended August 31, 2017.
-- Exceeded Q3 2017 revenue, net income, Adjusted EBITDA and CAFD guidance
-- Sponsors' strategic review of Partnership interests continuing
-- Declared Q3 2017 distribution of $0.2721 per share, an increase of 3.0
percent over the Q2 2017 distribution
-- Forecasts Q4 2017 distribution of $0.2802 per share, an increase of 3.0
percent compared to the Q3 2017 distribution
-- Partnership reiterates 2017 distribution growth of 12 percent
For the third quarter of fiscal 2017, 8point3 Energy Partners reported revenue of $27.7 million, net income of $28.7 million, Adjusted EBITDA of $53.5 million and cash available for distribution (CAFD) of $33.2 million.
"The stable performance of our high-quality solar portfolio enabled us to exceed our financial goals for the quarter and raise our quarterly distribution for the ninth consecutive quarter," said Chuck Boynton, 8point3 Energy Partners' CEO. "We expect that our current portfolio of interests in 946 megawatts (MW) of U.S. solar assets will generate annual CAFD of more than $106 million in 2017.
"Also, our sponsors' strategic review related to their partnership interests in 8point3 is continuing. As SunPower announced last quarter, it has joined First Solar in its desire to sell its ownership stake in 8point3 though, as previously noted, there can be no assurances that a transaction will be consummated," concluded Boynton.
Additionally, during the quarter, the Board of Directors of the Partnership's general partner waived the negotiating period related to the offering of SunPower's 100-MW Boulder Solar 1 Right of First Offer (ROFO) project. As a result of this waiver, SunPower has the right to offer and sell this project to a third party in accordance with the terms of the ROFO Agreement.
The Board of Directors of the Partnership's general partner also declared a cash distribution for its Class A shares of $0.2721 per share for the third quarter. The third quarter distribution will be paid on October 13, 2017 to shareholders of record as of October 3, 2017.
"We were pleased with our third quarter results as our portfolio continued to perform as expected," said Bryan Schumaker, 8point3 Energy Partners' chief financial officer. "We are well positioned to meet our financial and operational goals for this year and remain committed to maintaining our 12 percent targeted distribution growth rate for 2017."
The Partnership did not utilize its $125 million at-the-market (ATM) equity offering program during the third quarter.
Guidance
The Partnership's fourth quarter 2017 guidance is as follows: revenue of $12.0 million to $15.0 million, net income of $1.5 million to $4.0 million, Adjusted EBITDA of $22.0 million to $25.0 million, CAFD of $32.0 million to $35.0 million and a distribution of $0.2802 per share, a forecasted increase of 3.0 percent compared to the Q3 2017 distribution.
As a result of its consistent asset performance, the Partnership is raising its fiscal year 2017 guidance. The Partnership now expects revenue of $66.5 million to $69.5 million, net income of $32.0 million to $34.5 million, Adjusted EBITDA of $117.0 million to $120.0 million and CAFD of $106.0 million to $109.0 million. The Partnership also reiterates its expected distribution growth rate of 12 percent for fiscal year 2017.
About 8point3 Energy Partners
8point3 Energy Partners LP (NASDAQ:CAFD) is a growth-oriented limited partnership formed by First Solar, Inc. and SunPower Corporation to own, operate and acquire solar energy generation projects. 8point3 Energy Partners' primary objective is to generate predictable cash distributions that grow at a sustainable rate. The Partnership owns interests in projects in the United States that generate long-term contracted cash flows and serve utility, commercial and residential customers. For more information about 8point3 Energy Partners, please visit: www.8point3energypartners.com.
For 8point3 Energy Partners Investors
This press release includes various "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. You can identify our forward-looking statements by words such as "anticipate", "believe", "estimate", "expect", "forecast", "goals", "objectives", "outlook", "intend", "plan", "predict", "project", "risks", "schedule", "seek", "target", "could", "may", "will", "should" or "would" or other similar expressions that convey the uncertainty of future events or outcomes. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, these statements are accompanied by cautionary language identifying important factors, though not necessarily all such factors, which could cause future outcomes to differ materially from those set forth in forward-looking statements. In particular, expressed or implied statements concerning the sponsors' ownership interest in the Partnership, expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries, including guidance regarding the Partnership's revenue, net income, Adjusted EBITDA, cash available for distribution and distributions, other future actions, conditions or events such as the projected commercial operation dates of projects, future operating results or the ability to generate sales, income or cash flow or to make distributions are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Forward-looking statements speak only as of the date of this press release, October 4, 2017, and we disclaim any obligation to update such statements for any reason, except as required by law. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this paragraph. Many of the factors that will determine these results are beyond our ability to control or predict. These factors include the risk factors described under "Risk Factors" in the Partnership's Annual Report on Form 10-K for the fiscal year ended November 30, 2016, filed with the Securities and Exchange Commission on January 26, 2017 and the Partnership's Quarterly Report on Form 10-Q for the quarterly period ended May 31, 2017, filed with the Securities and Exchange Commission on June 29, 2017. If any of those risks occur, it could cause our actual results to differ materially from those contained in any forward-looking statement. Because of these risks and uncertainties, you should not place undue reliance on any forward-looking statement.
Non-GAAP Financial Information
This earnings release includes certain financial measures that are not defined under U.S. generally accepted accounting principles (GAAP), including Adjusted EBITDA and CAFD. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. We reconcile these non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP in the tables that accompany this release. In the introduction to such reconciliation tables that accompany this release, we disclose the reasons why we believe our use of the non-GAAP financial measures in this release provides useful information. Please read "Non-GAAP Financial Measures" below for further details on our use of non-GAAP financial measures.
8point3 Energy Partners LP
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
August 31, 2017 November 30, 2016
--------------- -----------------
Assets
Current assets:
Cash and cash equivalents $10,361 $14,261
Accounts receivable and short-
term financing receivables, net 10,882 5,401
Prepaid and other current
assets(1) 12,312 15,745
------ ------
Total current assets 33,555 35,407
Property and equipment, net 719,868 720,132
Long-term financing
receivables, net 77,484 80,014
Investments in unconsolidated
affiliates 791,985 475,078
Other long-term assets 21,459 24,432
------ ------
Total assets $1,644,351 $1,335,063
========== ==========
Liabilities and Equity
Current liabilities:
Accounts payable and other
current liabilities(1) $6,565 $23,771
Short-term debt and financing
obligations(1) 2,201 1,964
Deferred revenue, current
portion 1,527 870
----- ---
Total current liabilities 10,293 26,605
Long-term debt and financing
obligations(1) 709,989 384,436
Deferred revenue, net of current
portion 128 308
Deferred tax liabilities 38,591 30,733
Asset retirement obligations 14,796 13,448
Other long-term liabilities 1,853 -
----- ---
Total liabilities 775,650 455,530
------- -------
Redeemable noncontrolling
interests 17,346 17,624
Equity:
Class A shares, 28,084,935 and
28,072,680 issued and
outstanding as of August 31,
2017 and November 30, 2016,
respectively 249,306 249,138
Class B shares, 51,000,000
issued and outstanding as of
August 31, 2017 and November
30, 2016 - -
Accumulated earnings 12,550 22,440
------ ------
Total shareholders' equity
attributable to 8point3 Energy
Partners LP 261,856 271,578
Noncontrolling interests 589,499 590,331
------- -------
Total equity 851,355 861,909
------- -------
Total liabilities and equity $1,644,351 $1,335,063
========== ==========
1 The Partnership has related-party
balances for transactions made
with the Sponsors and tax equity
investors. Related-party balances
recorded within "Prepaid and other
current assets" in the unaudited
condensed consolidated balance
sheets were $0.8 million and $0.9
million as of August 31, 2017 and
November 30, 2016, respectively.
Related-party balances recorded
within "Accounts payable and other
current liabilities" in the
unaudited condensed consolidated
balance sheets were $3.5 million
and $19.7 million due to Sponsors
as of August 31, 2017 and November
30, 2016, respectively, and $0.9
million and $1.0 million due to
tax equity investors as of August
31, 2017 and November 30, 2016,
respectively. Related-party
balances recorded within "Short-
term debt and financing
obligations" and "Long-term debt
and financing obligations" in the
unaudited condensed consolidated
balance sheets were $2.2 million
and $47.8 million, respectively,
as of August 31, 2017, and $2.0
million and zero, respectively, as
of November 30, 2016.
8point3 Energy Partners LP
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
August 31, 2017 August 31, 2016 August 31, 2017 August 31, 2016
--------------- --------------- --------------- ---------------
Revenues:
Operating revenues(1) $27,744 $26,116 $54,319 $46,735
------- ------- ------- -------
Total revenues 27,744 26,116 54,319 46,735
Operating costs and expenses(1):
Cost of operations 2,064 1,928 6,396 4,953
Selling, general and
administrative 2,050 1,804 5,894 5,096
Depreciation and
accretion 7,220 6,311 20,875 16,325
Acquisition-related
transaction costs 19 599 50 2,261
--- --- --- -----
Total operating costs and
expenses 11,353 10,642 33,215 28,635
------ ------ ------ ------
Operating income 16,391 15,474 21,104 18,100
Other expense (income):
Interest expense 6,060 3,199 17,429 9,123
Interest income (304) (296) (869) (909)
Other expense (income) 283 (291) (514) (551)
--- ---- ---- ----
Total other expense, net 6,039 2,612 16,046 7,663
----- ----- ------ -----
Income before income
taxes and equity in
earnings of
unconsolidated investees 10,352 12,862 5,058 10,437
Income tax provision (5,012) (5,063) (7,860) (15,281)
Equity in earnings of
unconsolidated investees 23,322 8,075 33,287 13,504
------ ----- ------ ------
Net income 28,662 15,874 30,485 8,660
Less: Net income (loss)
attributable to
noncontrolling interests
and redeemable
noncontrolling interests 21,189 8,281 18,765 (14,263)
------ ----- ------ -------
Net income attributable
to 8point3 Energy
Partners LP Class A
shares $7,473 $7,593 $11,720 $22,923
====== ====== ======= =======
Net income per Class A share:
Basic $0.27 $0.38 $0.42 $1.15
Diluted $0.27 $0.38 $0.42 $1.15
Distributions per Class A
share: $0.26 $0.23 $0.77 $0.67
Weighted average number of Class A shares:
Basic 28,081 20,015 28,077 20,011
Diluted 43,581 35,515 43,577 35,511
1 The Partnership has related-
party activities for
transactions made with the
Sponsors. Related party
transactions recorded within
"Operating revenues" in the
unaudited condensed
consolidated statement of
operations were $1.3 million
for each of the three months
ended August 31, 2017 and
August 31, 2016, and $3.9
million for each of the nine
months ended August 31, 2017
and August 31, 2016. Related
party transactions recorded
within "Operating costs and
expenses" in the unaudited
condensed consolidated
statement of operations were
$2.1 million and $1.9 million
for the three months ended
August 31, 2017 and August 31,
2016, respectively, and $6.3
million and $5.0 million for
the nine months ended August
31, 2017 and August 31, 2016,
respectively.
8point3 Energy Partners LP
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
August 31, 2017 August 31, 2016
--------------- ---------------
Cash flows from operating activities:
Net income $30,485 $8,660
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, amortization and
accretion 21,198 16,325
Unrealized gain on interest rate swap (349) (536)
Distributions from unconsolidated
investees 32,892 15,130
Equity in earnings of unconsolidated
investees (33,287) (13,504)
Deferred income taxes 7,858 15,281
Share-based compensation 168 168
Amortization of debt issuance costs 737 442
Other, net 1 270
Changes in operating assets and
liabilities:
Accounts receivable and financing
receivable, net (2,830) (4,290)
Prepaid and other assets 6,170 (1,398)
Deferred revenue 482 467
Accounts payable and other
liabilities 734 806
--- ---
Net cash provided by operating
activities 64,259 37,821
------ ------
Cash flows from investing activities:
Cash provided by (used in) purchases
of property and equipment, net (314) 1,415
Cash paid for acquisitions (313,183) (124,326)
Distributions from unconsolidated
investees 13,575 653
------ ---
Net cash used in investing activities (299,922) (122,258)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of Class A
shares, net of issuance costs - (201)
Proceeds from issuance of bank loans,
net of issuance costs 283,999 64,991
Repayment of bank loans (7,000) -
Repayment of promissory note to First
Solar (1,964) -
Capital contributions from SunPower - 9,973
Cash distribution to Class A
shareholders (21,610) (13,487)
Cash distributions to Sponsors as
OpCo unit holders (39,255) -
Cash contributions from
noncontrolling interests and
redeemable noncontrolling interests
-tax equity investors 24,353 372
Cash distributions to noncontrolling
interests and redeemable
noncontrolling interests -tax
equity investors (6,760) (4,102)
------ ------
Net cash provided by financing
activities 231,763 57,546
------- ------
Net decrease in cash and cash
equivalents (3,900) (26,891)
Cash and cash equivalents, beginning
of period 14,261 56,781
------ ------
Cash and cash equivalents, end of
period $10,361 $29,890
======= =======
Non-cash transactions:
Issuance by OpCo of promissory note
to First Solar in connection with
the Stateline Acquisition $50,000 $ -
Property and equipment acquisitions
funded by liabilities 2,618 17,410
Settlement of related party payable
by capital contribution from tax
equity investor - 46,837
Accrued distributions to
noncontrolling interests and
redeemable noncontrolling interests
-tax equity investors 923 795
Non-GAAP Financial Measures
Our management uses a variety of financial metrics to analyze our performance. The key financial metrics we evaluate are Adjusted EBITDA and CAFD.
Adjusted EBITDA.
We define Adjusted EBITDA as net income plus interest expense, net of interest income, income tax provision, depreciation, amortization and accretion, including our proportionate share of net interest expense, income taxes and depreciation, amortization and accretion from our unconsolidated affiliates that are accounted for under the equity method, and share-based compensation and transaction costs incurred for our acquisitions of projects; and excluding the effect of certain other non-cash or non-recurring items that we do not consider to be indicative of our ongoing operating performance such as, but not limited to, mark to market adjustments to the fair value of derivatives related to our interest rate hedges. Adjusted EBITDA is a non-U.S. GAAP financial measure. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The U.S. GAAP measure most directly comparable to Adjusted EBITDA is net income. The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and borrowers' ability to service debt. In addition, Adjusted EBITDA is used by our management for internal planning purposes including certain aspects of our consolidated operating budget and capital expenditures. It is also used by investors to assess the ability of our assets to generate sufficient cash flows to make distributions to our Class A shareholders.
However, Adjusted EBITDA has limitations as an analytical tool because it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments, does not reflect changes in, or cash requirements for, working capital, does not reflect significant interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt or cash distributions on tax equity, does not reflect payments made or future requirements for income taxes, and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results of operations. Adjusted EBITDA is a non-U.S. GAAP measure and should not be considered an alternative to net income or any other performance measure determined in accordance with U.S. GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of Adjusted EBITDA are not necessarily comparable to EBITDA as calculated by other companies. Investors should not rely on these measures as a substitute for any U.S. GAAP measure, including net income.
Cash Available for Distribution.
We use CAFD, which we define as Adjusted EBITDA less equity in earnings of unconsolidated affiliates, cash interest paid, cash income taxes paid, maintenance capital expenditures, cash distributions to noncontrolling interests and principal amortization payments on any project-level indebtedness plus cash distributions from unconsolidated affiliates, indemnity payments and promissory notes from Sponsors, test electricity generation, cash proceeds from sales-type residential leases, state and local rebates and cash proceeds for reimbursable network upgrade costs. Our cash flow is generated from distributions we receive from OpCo each quarter. OpCo's cash flow is generated primarily from distributions from the Project Entities. As a result, our ability to make distributions to our Class A shareholders depends primarily on the ability of the Project Entities to make cash distributions to OpCo and the ability of OpCo to make cash distributions to its unitholders.
We believe CAFD is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make our distributions. In addition, CAFD is used by our management team for determining future acquisitions and managing our growth. The U.S. GAAP measure most directly comparable to CAFD is net income.
However, CAFD has limitations as an analytical tool because it does not capture the level of capital expenditures necessary to maintain the operating performance of our projects, does not include changes in operating assets and liabilities and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations. CAFD is a non-U.S. GAAP measure and should not be considered an alternative to net income or any other performance measure determined in accordance with U.S. GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of CAFD are not necessarily comparable to CAFD as calculated by other companies. Investors should not rely on these measures as a substitute for any U.S. GAAP measure, including net income.
The following table presents a reconciliation of net income to Adjusted EBITDA and CAFD for the three months ended August 31, 2017, May 31, 2017 and August 31, 2016, respectively, and nine months ended August 31, 2017 and August 31, 2016, respectively:
8point3 Energy Partners LP
Reconciliation of Net Income to Adjusted EBITDA and CAFD
(Unaudited)
Three Months Ended Nine Months Ended
(in thousands) August 31, May 31, August 31, August 31, August 31,
2017 2017 2016 2017 2016
Net income $28,662 $7,143 $15,874 $30,485 $8,660
Add (Less):
Interest expense, net of
interest income 5,756 5,580 2,903 16,560 8,206
Income tax provision 5,012 2,315 5,063 7,860 15,281
Depreciation, amortization
and accretion 7,327 7,000 6,311 21,198 16,325
Share-based compensation 56 56 56 168 168
Acquisition-related
transaction costs (1) 19 18 599 50 2,261
Unrealized gain (loss) on
derivatives (2) 284 37 (285) (349) (536)
Add proportionate share from equity method
investments (3)
Interest expense, net of
interest income 141 169 (54) 440 (149)
Depreciation, amortization
and accretion 6,224 6,224 2,397 18,672 7,683
Adjusted EBITDA $53,481 $28,542 $32,864 $95,084 $57,899
Less:
Equity in earnings of
unconsolidated affiliates,
net with (3) above (4) (29,687) (15,752) (10,418) (52,399) (21,038)
Cash interest paid (5) (5,930) (5,666) (3,278) (16,357) (9,176)
Cash distributions to non-
controlling interests (2,599) (2,276) (2,826) (6,760) (3,730)
Maintenance capital
expenditures (177) - - (177) -
Short-term note (6) - - - (1,964) -
Add:
Cash distributions from
unconsolidated affiliates
(7) 17,169 11,587 7,018 46,467 16,075
Indemnity payment from
Sponsors (8) 41 27 64 133 10,037
State and local rebates (9) - - - - 299
Cash proceeds from sales-
type residential leases
(10) 746 695 630 2,112 1,901
Test electricity generation
(11) 1 22 - 33 421
Cash proceeds for
reimbursable network
upgrade costs (12) 125 1,630 - 7,878 -
CAFD $33,170 $18,809 $24,054 $74,050 $52,688
======= ======= ======= ======= =======
(1) Represents acquisition-related financial
advisory, legal and accounting fees
associated with ROFO Project interests
purchased and expected to be purchased by
us in the future.
(2) Represents the changes in fair value of
interest rate swaps that were not
designated as cash flow hedges.
(3) Represents our proportionate share of net
interest expense, depreciation,
amortization and accretion from our
unconsolidated affiliates that are
accounted for under the equity method.
(4) Equity in earnings of unconsolidated
affiliates represents the earnings from
the Solar Gen 2 Project, the North Star
Project, the Lost Hills Blackwell Project,
the Henrietta Project, and the Stateline
Project and is included on our unaudited
condensed consolidated statements of
operations.
(5) Represents cash interest payments related
to OpCo's senior secured credit facility
and the Stateline Promissory Note.
(6) Represents repayment of promissory note to
First Solar.
(7) Cash distributions from unconsolidated
affiliates represent the cash received by
OpCo with respect to its 49% interest in
the Solar Gen 2 Project, the North Star
Project, the Lost Hills Blackwell Project,
the Henrietta Project, and its 34%
interest in the Stateline Project.
(8) Represents indemnity payments from the
Sponsors owed to OpCo in accordance with
the Omnibus Agreement.
(9) State and local rebates represent cash
received from state or local governments
for owning certain solar power systems.
The receipt of state and local rebates is
accounted for as a reduction in the asset
carrying value rather than operating
revenue.
(10) Cash proceeds from sales-type residential
leases, net, represent gross rental cash
receipts for sales-type leases, less
sales-type revenue and lease interest
income that is already reflected in net
income during the period. The
corresponding revenue for such leases was
recognized in the period in which such
lease was placed in service, rather than
in the period in which the rental payment
was received, due to the characterization
of these leases under U.S. GAAP.
(11) For the three and nine months ended August
31, 2017, test electricity generation
represents the sale of electricity that
was generated prior to COD by the Macy's
Maryland Project. For the nine months
ended August 31, 2016, test electricity
generation represents the sale of
electricity that was generated prior to
COD by the Kingbird Project. Solar systems
may begin generating electricity prior to
COD as a result of the installation and
interconnection of individual solar
modules, which occurs over time during the
construction and commission period. The
sale of test electricity generation is
accounted for as a reduction in the asset
carrying value rather than operating
revenue prior to COD, even though it
generates cash for the related Project
Entity.
(12) Cash proceeds from a utility company
related to reimbursable network upgrade
costs associated with the Quinto Project
and the Kingbird Project.
8point3 Energy Partners LP
FY 2017 Q4 Guidance
Reconciliation of Net Income to Adjusted EBITDA and CAFD
(in millions) Low High
--- ----
Net income $1.5 $4.0
Add:
Interest expense, net of interest income 6.5 6.5
Income tax provision 0.3 0.8
Depreciation, amortization and accretion 7.3 7.3
Share-based compensation 0.1 0.1
Add proportionate share from equity method
investments (1):
Depreciation, amortization and accretion 6.3 6.3
--- ---
Adjusted EBITDA $22.0 $25.0
Less:
Equity in earnings of unconsolidated
affiliates, net with (1) (13.5) (14.0)
Cash interest paid (6.5) (6.5)
Cash distributions to non-controlling
interests (2.4) (2.4)
Add:
Cash distributions from unconsolidated
affiliates 30.5 30.5
Cash proceeds for reimbursable network
upgrade costs 1.0 1.5
Cash proceeds from sales-type residential
leases 0.9 0.9
CAFD $32.0 $35.0
===== =====
(1) Represents our proportionate share of
net interest expense, depreciation,
amortization and accretion from our
unconsolidated affiliates that are
accounted for under the equity
method.
8point3 Energy Partners LP
FY 2017 Guidance
Reconciliation of Net Income to Adjusted EBITDA and CAFD
(in millions) Low High
--- ----
Net income $32.0 $34.5
Add:
Interest expense, net
of interest income 23.1 23.1
Income tax provision 8.1 8.6
Depreciation,
amortization and
accretion 28.5 28.5
Share-based
compensation 0.2 0.2
Add proportionate
share from equity
method investments
(1):
Depreciation,
amortization and
accretion 25.1 25.1
Adjusted EBITDA $117.0 $120.0
Less:
Equity in earnings of
unconsolidated
affiliates, net with
(1) (65.9) (66.4)
Cash interest paid (22.9) (22.9)
Cash distributions to
non-controlling
interests (9.2) (9.2)
Short-term note (2.0) (2.0)
Add:
Cash distributions
from unconsolidated
affiliates 77.0 77.0
Cash proceeds for
reimbursable network
upgrade costs 8.9 9.4
Cash proceeds from
sales-type
residential leases 3.1 3.1
--- ---
CAFD $106.0 $109.0
====== ======
(1) Represents our proportionate share of
net interest expense, depreciation,
amortization and accretion from our
unconsolidated affiliates that are
accounted for under the equity
method.
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SOURCE 8point3 Energy Partners LP
