Pattern Energy Reports Third Quarter 2017 Financial Results
- Increases dividend to $0.422 per Class A common share for Q4 2017 -
SAN FRANCISCO, Nov. 9, 2017 /PRNewswire/ -- Pattern Energy Group Inc. (the "Company" or "Pattern Energy") (NASDAQ & TSX: PEGI) today announced its financial results for the 2017 third quarter.
Highlights
(Figures reported below are for the third quarter of fiscal 2017, unless otherwise noted)
-- Proportional gigawatt hours ("GWh") sold of 1,514 GWh
-- Net cash provided by operating activities of $2.1 million
-- Cash available for distribution ("CAFD") of $9.5 million, and on track
to meet the narrowed full year guidance((1))
-- Net loss of $48.4 million
-- Adjusted EBITDA of $54.7 million
-- Revenue of $92.0 million
-- Declared a fourth quarter dividend of $0.422 per Class A common share or
$1.69 on an annualized basis, subsequent to the end of the period,
representing a 0.5% increase over the previous quarter's dividend
-- Completed the acquisition of a 51% interest in the 179 MW Meikle Wind
facility from Pattern Energy Group LP ("Pattern Development 1.0")((2))
for a total investment of approximately $68 million
-- Announced the addition of the 100 megawatt ("MW") Ishikari wind project
in Japan to the Company's identified ROFO ("right of first offer") list,
and as such the identified ROFO list now totals 1,150 MW of potential
owned capacity
-- Completed an equity offering of approximately $215 million in gross
proceeds, subsequent to the end of the period
"The strategic transactions we announced earlier this year together with the new capital we raised last month represent the beginning of the next phase of our growth strategy," said Mike Garland, President and CEO of Pattern Energy. "With the steps we have taken this year, the business is significantly stronger today. We have a clear opportunity to capitalize on the assets from the identified ROFO list and our investment in Pattern Development 2.0. The expansion of the identified ROFO list demonstrates the progress we are making toward achieving our goal of 5 gigawatts ("GW") by 2020."
(1) The forward looking measure of 2017 full year
cash available for distribution (CAFD) is a
non-GAAP measure that cannot be reconciled to
net cash provided by operating activities as
the most directly comparable GAAP financial
measure without unreasonable effort primarily
because of the uncertainties involved in
estimating forward-looking changes in working
capital balances which are added to earnings
to arrive at cash provided by operations and
subtracted therefrom to arrive at CAFD. A
description of the adjustments to determine
CAFD can be found within Item 2, Management's
Discussion and Analysis of Financial Condition
and Results of Operations - Key Metrics, of
Pattern Energy's 2017 Quarterly Report on Form
10-Q for the period ended September 30, 2017.
(2) In December 2016, Pattern Energy Group LP
("Pattern Development 1.0") formed Pattern
Energy Group 2 LP ("Pattern Development 2.0"),
and together such companies are referred to as
"Pattern Development".
Financial and Operating Results
Pattern Energy sold 1,513,997 megawatt hours ("MWh") of electricity on a proportional basis in the third quarter of 2017 compared to 1,472,300 MWh sold in the same period last year. Pattern Energy sold 5,663,782 MWh of electricity on a proportional basis for the nine months ended September 30, 2017 (YTD 2017) compared to 4,988,621 MWh sold in the same period last year. The 3% increase in the quarterly period was primarily attributable to the acquisition of new projects, specifically Armow in the fourth quarter of 2016, Broadview in the second quarter 2017 and Meikle in the third quarter of 2017, offset by unfavorable wind conditions as previously announced in the press release dated September 29, 2017. Production for the quarter was 15% below the long-term average forecast for the period.
Net cash provided by operating activities was $2.1 million for the third quarter of 2017 compared to $37.4 million for the same period last year. Net cash provided by operating activities was $159.3 million for YTD 2017 compared to $107.4 million for the same period last year. The change in the quarterly period was primarily due to increases of $21.6 million in cash payments for accounts payable and accrued liabilities due to timing of payments, $13.8 million in interest payments due to the issuance of the Unsecured Senior Notes in January 2017 and debt associated with the acquisitions in 2017, $7.3 million in transmission costs and $2.7 million in project expenses, as well as a decrease of $4.7 million in cash receipts due to timing of collections from trade receivables. These changes to net cash from operating activities were partially offset by a $11.4 million increase in distributions from unconsolidated investments and by a $2.6 million increase in revenues (excluding unrealized loss on energy derivative and amortization of PPAs).
Cash available for distribution was $9.5 million for the third quarter of 2017, which is above the midpoint of the guidance provided in the Company's press release dated September 29, 2017, compared to $20.2 million for the same period last year. Cash available for distribution was $103.8 million for YTD 2017 compared to $96.7 million for the same period in the prior year. The $10.7 million change in the quarterly period was primarily due to increases of $7.3 million in interest expense from the issuance of the Unsecured Senior Notes in January 2017 and debt associated with the acquisitions in 2017, $7.3 million in transmission costs, $2.7 million in project expenses and $1.0 million in distributions to noncontrolling interests. The change was partially offset by increases of $5.9 million in total distributions from unconsolidated investments, $2.6 million in revenues (excluding unrealized loss on energy derivative and amortization of PPAs), $0.3 million network upgrade reimbursement related to Broadview, as well as a decrease of $0.5 million in operating expense.
Net loss was $48.4 million in the third quarter of 2017, compared to $11.1 million for the same period last year. Net loss was $60.5 million for YTD 2017 compared to $55.7 million in the same period last year. The change in the quarterly period was primarily attributable to increases of $18.7 million in cost of revenues due to the acquisitions in 2017 and $24.4 million in other expense related to a decrease in earnings in unconsolidated investments, net of increases to interest expense, loss on undesignated derivatives and realized loss on designated derivatives. The impact of these items was partially offset by an increase in tax benefit of $5.2 million.
Adjusted EBITDA was $54.7 million for the third quarter of 2017 compared to $62.3 million for the same period last year. Adjusted EBITDA was $244.8 million for YTD 2017 compared to $219.0 million for the same period last year. The $7.6 million change in the quarterly period was primarily due to increases of $7.3 million in transmission costs and $2.7 million in project expense, and a decrease of $0.7 million in the proportionate share of Adjusted EBITDA from unconsolidated investments. These changes were partially offset by a $2.6 million increase in revenues (excluding unrealized loss on energy derivative and amortization of PPAs) and a $0.5 million decrease in operating expense.
Fourth Quarter Wind Conditions
Based on conditions to date in the fourth quarter of 2017, wind levels for the fourth quarter are in line with the long-term average forecast, which represents a substantial improvement from the wind levels in the first two months of the third quarter.
2017 Financial Guidance
Pattern Energy is narrowing its targeted annual cash available for distribution for 2017 to a range of $145 million to $160 million. The new range maintains the midpoint of the original range and that midpoint represents an increase of 15% compared to cash available for distribution in 2016. The range assumes long-term average proportionate production of the fleet for the remainder of 2017 and takes into account a potential adverse impact of any extended electric grid outage in Puerto Rico during the fourth quarter of 2017. As noted above, forward-looking cash available for distribution is a non-GAAP measure that cannot be reconciled to net cash provided by operating activities as the most directly comparable GAAP financial measure without unreasonable effort for the reasons stated above.
Quarterly Dividend
Pattern Energy declared an increased dividend for the fourth quarter 2017, payable on January 31, 2018, to holders of record on December 29, 2017 in the amount of $0.422 per Class A common share, which represents $1.69 on an annualized basis. This is a 0.5% increase from the third quarter 2017 dividend of $0.42.
Operations Update
The completed evaluation of the 101 MW Santa Isabel project in Puerto Rico reported no material damage to the turbines or the project. While all of the turbines are operational, at present Santa Isabel has not been reconnected to the high voltage grid and the timing of when the project will be reconnected is not certain. Pattern Energy is working with the Puerto Rico Electric Power Authority ("PREPA"), the offtaker for the Santa Isabel project, to support PREPA's broader efforts to restore the high voltage grid so the project can help support providing much needed power to the Puerto Rican communities.
Project Acquisition
During the third quarter, Pattern Energy acquired a 91 MW owned interest in the 179 MW Meikle project, with PSP Investments acquiring the remaining 88 MW interest. The Meikle project, located in the Peace River Regional District of British Columbia, commenced commercial operations in the first quarter of 2017 and operates under a 25-year power purchase agreement with BC Hydro, which has a AAA/Aaa2 credit rating.
Pattern Energy acquired its 51% interest in Meikle for a total investment of approximately $68 million((1)), paid at closing, which represents a CAFD multiple of 10x of the project's five-year average CAFD((2)).
Construction Pipeline
Pattern Energy has agreed to acquire a 51% interest in the 143 MW Mont Sainte-Marguerite project, located in the Chaudière-Appalaches region south of Québec City. The project is currently in the final stages of construction and commissioning and is expected to commence commercial operations in late 2017. The project will operate under a 25-year power purchase agreement with Hydro-Québec, which has a AA-/Aa2 credit rating.
Pattern Energy will acquire its 51% interest in Mont Sainte-Marguerite for a total investment of approximately $40 million((3)), which represents a CAFD multiple of 10x of the five-year average CAFD((2)). The acquisition is expected to close during the first quarter of 2018, following the commencement of commercial operations and subject to customary closing conditions. It will be funded at the time of closing using available liquidity.
(1) Based on a CAD to USD exchange rate
of $1.27
(2) This forward looking measure of five-
year average annual purchase price
multiple of CAFD contribution from
the Meikle and Mont Sainte-
Marguerite projects is a non-GAAP
measure that cannot be reconciled to
net cash provided by operating
activities as the most directly
comparable GAAP financial measure
without unreasonable effort primarily
because of the uncertainties involved
in estimating forward-looking
changes in working capital balances
which are added to earnings to arrive
at cash provided by operations and
subtracted therefrom to arrive at
CAFD. A description of the
adjustments to determine CAFD can be
found within Item 2, Management's
Discussion and Analysis of Financial
Condition and Results of Operations -
Key Metrics, of Pattern Energy's
2017 Quarterly Report on Form 10-Q
for the period ended September 30,
2017.
(3) Based on a CAD to USD exchange rate
of $1.32
Acquisition Pipeline
Pattern Development's pipeline of development projects totals more than 10 GW. Pattern Energy has a ROFO on a pipeline of acquisition opportunities from Pattern Development. The identified ROFO list stands at 1,150 MW of potential owned capacity and represents a portion of the Pattern Development pipeline of development projects, all of which are subject to Pattern Energy's ROFO. Since its IPO, Pattern Energy has purchased, or agreed to purchase, 1,358 MW from Pattern Development 1.0 and in aggregate grown the identified ROFO list from 746 MW to more than 2 GW.
Below is a summary of the identified ROFO projects that Pattern Energy expects to acquire from Pattern Development in connection with Pattern Energy's project purchase rights:
Capacity (MW)
Identified Status Location Construction Commercial Contract Rated (3) Pattern
ROFO Projects Start (1) Operations (2) Type Development-
Owned (4)
--- --------
Pattern Development 1.0 Projects
Otsuki Wind Operational Japan n/a 2006 PPA 12 12
Kanagi Solar Operational Japan 2014 2016 PPA 10 10
Futtsu Solar Operational Japan 2014 2016 PPA 31 31
Conejo Solar(5) Operational Chile 2015 2016 PPA 104 104
El Cabo In construction New Mexico 2016 2017 PPA 298 125
Belle River In construction Ontario 2016 2017 PPA 100 43
Ohorayama In construction Japan 2016 2018 PPA 33 33
North Kent In construction Ontario 2017 2018 PPA 100 35
Henvey Inlet Late stage development Ontario 2017 2019 PPA 300 150
Tsugaru Late stage development Japan 2017 2020 PPA 122 122
Sumita Late stage development Japan 2019 2021 PPA 100 62
Pattern Development 2.0 Projects
Stillwater Big Sky Late stage development Montana 2017 2018 PPA 79 67
Crazy Mountain Late stage development Montana 2017 2019 PPA 80 68
Grady Late stage development New Mexico 2018 2019 PPA 220 188
Ishikari Late stage development Japan 2019 2022 PPA 100 100
--- ---
1,689 1,150
===== =====
(1) Represents year of actual or anticipated
commencement of construction.
(2) Represents year of actual or anticipated
commencement of commercial operations.
(3) Rated capacity represents the maximum
electricity generating capacity of a
project in MW. As a result of wind and
other conditions, a project or a
turbine will not operate at its rated
capacity at all times and the amount of
electricity generated will be less than
its rated capacity. The amount of
electricity generated may vary based on
a variety of factors.
(4) Pattern Development-Owned capacity
represents the maximum, or rated,
electricity generating capacity of the
project in MW multiplied by Pattern
Development 1.0's or Pattern
Development 2.0's percentage ownership
interest in the distributable cash flow
of the project.
(5) From time to time, the Company conducts
strategic reviews of its markets.
Pattern Energy is conducting a
strategic review of the market, growth,
and opportunities in Chile. In the
event management believes the Company
can utilize funds that have already
been invested in Chile or funds that
might otherwise be invested in Chile in
a more productive manner elsewhere that
could generate a higher return on
investment, the Company may decide to
exit Chile for other opportunities with
greater potential. In addition, Pattern
Development 1.0 is also concurrently
exploring strategic alternatives for
its assets in Chile.
Cash Available for Distribution and Adjusted EBITDA Non-GAAP Reconciliations
The following tables reconcile non-GAAP net cash provided by operating activities to cash available for distribution and net income (loss) to Adjusted EBITDA, respectively, for the periods presented (in thousands):
Three months ended Nine months ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Net cash provided by
operating
activities(1) $2,147 $37,395 $159,330 $107,371
Changes in operating
assets and
liabilities 25,481 (4,513) (22,475) 800
Network upgrade
reimbursement 346 - 8,936 -
Release of restricted
cash to fund project
and general and
administrative costs - - - 590
Operations and
maintenance capital
expenditures (254) (133) (517) (879)
Distributions from
unconsolidated
investments 2,821 8,292 11,211 40,066
Other 598 (195) 1,974 (130)
Less:
Distributions to
noncontrolling
interests (4,537) (3,584) (13,701) (11,771)
Principal payments
paid from operating
cash flows (17,140) (17,060) (40,911) (39,322)
------- ------- ------- -------
Cash available for
distribution $9,462 $20,202 $103,847 $96,725
====== ======= ======== =======
(1) Included in net cash provided by
operating activities is the portion
of distributions from unconsolidated
investments paid from cumulative
earnings representing the return on
investment.
Three months ended Nine months ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Net loss $(48,376) $(11,050) $(60,521) $(55,744)
Plus:
Interest expense, net of
interest income 26,710 19,583 73,009 60,906
Tax (benefit) provision (3,839) 1,311 5,477 4,038
Depreciation, amortization
and accretion 56,650 45,755 156,629 136,974
------ ------ ------- -------
EBITDA 31,145 55,599 174,594 146,174
Unrealized loss on energy
derivative (1) 3,113 818 10,134 14,970
Gain (loss) on undesignated
derivatives, net 4,081 (1,825) 9,480 17,685
Realized loss on
derivatives 2,207 - 2,207 -
Net loss on transactions 466 314 1,585 353
Adjustments from
unconsolidated investments - (8,439) - (19,573)
Plus, proportionate share
from unconsolidated
investments:
Interest expense, net of
interest income 10,270 7,634 29,108 22,778
Depreciation, amortization
and accretion 9,361 6,660 26,390 19,624
(Gain) loss on undesignated
derivatives, net (5,908) 1,544 (8,696) 17,015
------ ----- ------ ------
Adjusted EBITDA $54,735 $62,305 $244,802 $219,026
======= ======= ======== ========
(1) Amount is included in
electricity sales on the
consolidated statements of
operations.
Conference Call and Webcast
Pattern Energy will host a conference call and webcast to discuss these results at 10:30 a.m. Eastern Time, today, November 9, 2017. Mike Garland, President and CEO, and Mike Lyon, CFO, will co-chair the call. Participants should call (888) 231-8191 or (647) 427-7450 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 (855) 859-2056 or (416) 849-0833 and enter access code 8787979. The replay recording will be available until 11:59 p.m. Eastern Time, November 30, 2017.
A live webcast of the conference call will be also available on the events page in the investor section of Pattern Energy's website at www.patternenergy.com. An archived webcast will be available for one year.
About Pattern Energy
Pattern Energy Group Inc. (Pattern Energy) is an independent power company listed on the NASDAQ Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 20 wind power facilities, including one project it has agreed to acquire, with a total owned interest of 2,736 MW in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy's wind power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.
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 to achieve the 2017 cash available for distribution target; achieve the five year average annual CAFD generated by Meikle and Mont Sainte-Marguerite; achieve the next phase of its growth strategy; capitalize on the assets from the iROFO list and investment in Pattern Development 2.0; achieve its target of 5 GW by 2020; the outcome of wind conditions in the fourth quarter; the timing for the Santa Isabel project to be reconnected to the high voltage grid or for PREPA to restore the high voltage grid in Puerto Rico; the timing of the consummation of the acquisition of Mont Sainte-Marguerite; and the ability of the Company to consummate additional acquisitions from the iROFO list. 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 and any quarterly reports on Form 10-Q. 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 Investor Relations
Matt Dallas Ross Marshall
917-363-1333 416-526-1563
matt.dallas@patternenergy.com ross.marshall@loderockadvisors.com
Pattern Energy Group Inc.
Consolidated Balance Sheets
(In thousands of U.S. Dollars, except share data)
(Unaudited)
September 30, December 31,
2017 2016
---- ----
Assets
Current assets:
Cash and cash
equivalents $91,057 $83,932
Restricted cash 7,150 11,793
Funds deposited by
counterparty 33,530 43,635
Trade receivables 48,960 37,510
Derivative assets,
current 18,824 17,578
Prepaid expenses 18,405 13,803
Deferred financing
costs, current, net of
accumulated
amortization of $11,360
and $9,350 as of
September 30, 2017 and
December 31, 2016,
respectively 2,514 2,456
Other current assets 19,058 7,350
Total current assets 239,498 218,057
Restricted cash 19,866 13,646
Property, plant and
equipment, net 4,023,355 3,135,162
Unconsolidated
investments 303,833 233,294
Derivative assets 14,865 26,712
Deferred financing costs 4,339 4,052
Net deferred tax assets 6,107 5,559
Finite-lived intangible
assets, net 138,516 91,895
Other assets 22,649 24,390
Total assets $4,773,028 $3,752,767
========== ==========
Liabilities and equity
Current liabilities:
Accounts payable and
other accrued
liabilities $53,200 $31,305
Accrued construction
costs 2,765 1,098
Counterparty deposit
liability 33,530 43,635
Accrued interest 7,043 9,545
Dividends payable 37,645 35,960
Derivative liabilities,
current 12,095 11,918
Revolving credit
facility 253,000 180,000
Current portion of long-
term debt, net 58,213 48,716
Other current
liabilities 13,133 4,698
------ -----
Total current
liabilities 470,624 366,875
Long-term debt, net 1,871,607 1,334,956
Derivative liabilities 21,979 24,521
Net deferred tax
liabilities 50,573 31,759
Finite-lived intangible
liability, net 52,062 54,663
Contingent liabilities 58,820 576
Other long-term
liabilities 98,519 60,673
------ ------
Total liabilities 2,624,184 1,874,023
Commitments and contingencies
Equity:
Class A common stock,
$0.01 par value per
share: 500,000,000
shares authorized;
88,569,377 and
87,410,687 shares
outstanding as of
September 30, 2017 and
December 31, 2016,
respectively 886 875
Additional paid-in
capital 1,062,252 1,145,760
Accumulated loss (104,225) (94,270)
Accumulated other
comprehensive loss (24,821) (62,367)
Treasury stock, at cost;
115,146 and 110,964
shares of Class A
common stock as of
September 30, 2017 and
December 31, 2016,
respectively (2,597) (2,500)
------ ------
Total equity before
noncontrolling interest 931,495 987,498
Noncontrolling interest 1,217,349 891,246
--------- -------
Total equity 2,148,844 1,878,744
Total liabilities and
equity $4,773,028 $3,752,767
========== ==========
Pattern Energy Group Inc.
Consolidated Statements of Operations
(In thousands of U.S. dollars, except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Revenue:
Electricity sales $89,807 $89,919 $293,977 $266,952
Other revenue 2,223 1,995 6,646 6,039
----- ----- ----- -----
Total revenue 92,030 91,914 300,623 272,991
------ ------ ------- -------
Cost of revenue:
Project expense 33,932 31,271 96,437 96,711
Transmission costs 7,421 113 12,213 278
Depreciation and
accretion 52,379 43,693 144,637 130,782
------ ------ ------- -------
Total cost of revenue 93,732 75,077 253,287 227,771
------ ------ ------- -------
Gross profit (loss) (1,702) 16,837 47,336 45,220
------ ------ ------ ------
Operating expenses:
General and
administrative 9,068 9,598 31,969 27,425
Related party general
and administrative 3,587 3,553 10,589 7,381
----- ----- ------ -----
Total operating expenses 12,655 13,151 42,558 34,806
------ ------ ------ ------
Operating income (loss) (14,357) 3,686 4,778 10,414
------- ----- ----- ------
Other income (expense):
Interest expense (27,147) (19,798) (74,541) (62,134)
Gain (loss) on
undesignated
derivatives, net (4,081) 1,825 (9,480) (17,685)
Realized loss on
designated derivatives (2,207) - (2,207) -
Earnings (loss) in
unconsolidated
investments, net (3,964) 4,685 27,431 15,755
Net loss on transactions (466) (314) (1,585) (353)
Other income, net 7 177 560 2,297
--- --- --- -----
Total other expense (37,858) (13,425) (59,822) (62,120)
------- -------
Net loss before income
tax (52,215) (9,739) (55,044) (51,706)
------- ------ ------- -------
Tax (benefit) provision (3,839) 1,311 5,477 4,038
------ ----- ----- -----
Net loss (48,376) (11,050) (60,521) (55,744)
------- ------- ------- -------
Net loss attributable to
noncontrolling interest (18,548) (7,037) (50,566) (24,838)
-------
Net loss attributable to
Pattern Energy $(29,828) $(4,013) $(9,955) $(30,906)
======== ======= ======= ========
Weighted-average number of common shares
outstanding
Basic and diluted 87,370,979 81,531,775 87,146,465 76,821,811
Loss per share attributable to Pattern
Energy
Class A common stock:
Basic and diluted $(0.34) $(0.05) $(0.12) $(0.40)
====== ====== ====== ======
Dividends declared per
Class A common share $0.42 $0.40 $1.25 $1.17
===== ===== ===== =====
Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
(Unaudited)
Nine months ended
September 30,
2017 2016
---- ----
Operating activities
Net loss $(60,521) $(55,744)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and accretion 144,637 130,782
Amortization of financing
costs 5,879 5,242
Amortization of debt discount/
premium, net 3,379 3,147
Amortization of power purchase
agreements, net 2,435 2,278
Loss on derivatives, net 15,662 29,757
Realized loss on derivatives,
net 2,207 -
Stock-based compensation 4,085 4,362
Deferred taxes 9,133 3,681
Intraperiod tax allocation (3,656) -
Earnings in unconsolidated
investments, net (27,431) (15,755)
Distributions from
unconsolidated investments 43,093 377
Other reconciling items (2,047) 44
Changes in operating assets and liabilities:
Funds deposited by
counterparty 10,105 (46,643)
Trade receivables (2,861) 6,078
Prepaid expenses (3,187) (1,005)
Other current assets (9,790) (3,709)
Other assets (non-current) 2,457 865
Accounts payable and other
accrued liabilities 16,389 (2,658)
Counterparty deposit liability (10,105) 46,643
Accrued interest (3,884) (6,017)
Other current liabilities 8,040 811
Long-term liabilities 14,569 4,952
Contingent liabilities 742 (117)
--- ----
Net cash provided by operating
activities 159,330 107,371
Investing activities
Cash paid for acquisitions,
net of cash and restricted
cash acquired (289,329) (4,024)
Capital expenditures (44,295) (31,554)
Distributions from
unconsolidated investments 11,211 40,066
Other assets 7,607 1,619
Other investing activities - (136)
--- ----
Net cash provided by (used in)
investing activities (314,806) 5,971
Financing activities
Proceeds from public offering,
net of issuance costs $22,431 $286,583
Dividends paid (107,943) (85,159)
Capital distributions -
noncontrolling interest (13,701) (11,771)
Payment for deferred financing
costs (7,763) (134)
Proceeds from revolving credit
facility 323,000 20,000
Repayment of revolving credit
facility (250,000) (340,000)
Proceeds from debt 404,395 -
Repayment of debt (192,109) (39,322)
Payment for interest rate
swaps (14,372) -
Other financing activities (3,712) (634)
------
Net cash provided by (used in)
financing activities 160,226 (170,437)
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash 3,952 1,750
----- -----
Net change in cash, cash
equivalents and restricted
cash 8,702 (55,345)
Cash, cash equivalents and
restricted cash at beginning
of period 109,371 146,292
------- -------
Cash, cash equivalents and
restricted cash at end of
period $118,073 $90,947
======== =======
Supplemental disclosures
Cash payments for income taxes $335 $233
Cash payments for interest
expense $70,100 $59,172
Schedule of non-cash activities
Change in property, plant and
equipment $619 $6,132
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SOURCE Pattern Energy Group Inc.
