Hannon Armstrong Announces First Quarter 2016 Financial Results; 19% Increase in Core Earnings to $0.32 Per Share
Hannon Armstrong Sustainable Infrastructure Capital, Inc. a leading provider of debt and equity financing to the energy efficiency and renewable energy markets, today reported Core Earnings, a non GAAP financial measure for the quarter ended March 31, 2016, were $12.2 million, or $0.32 per share, as compared to $7.4 million, or $0.27 per share, in the same period in 2015, a 19% increase per share.On a GAAP basis, the Company recorded net income for the quarter ended March 31, 2016, of $3.2 million, or $0.07 per share, as compared to $2.1 million, or $0.07 per share, in the same period in 2015. A reconciliation of our Core Earnings to GAAP net income is included in this press release.
“We continued to execute in the quarter, just as we have since we went public three years ago and that discipline has helped us produce an excellent quarter and total stockholder return of over 100% since the IPO,” said Chairman and CEO Jeffrey Eckel. “Our efficiency, wind and solar markets continue to be robust and our pipeline remains strong at more than $2.5 billion.”
Closed $213 million of transactions in the first quarter of 2016 compared to $104 million in the same period in 2015
19% quarterly Core EPS Growth over first quarter 2015
$0.30 per share quarterly dividend, for an annualized yield of 6.1% based on our closing stock price of $19.65 on May 3, 2016
Grew balance sheet to approximately $1.5 billion, with over 110 separate investments
Gross asset yield increased to 6.3%, from 6.2% at December 31, 2015
Achieved 66% fixed rate debt target
Debt to equity ratio of 2.3 to 1 as of March 31, 2016
Maintained a diversified pipeline of over $2.5 billion
“Our investment thesis of earning better risk adjusted returns from investing on the right side of the climate line, combined with our preference for senior and preferred positions in quality assets, continues to benefit us during this period of energy and financial market volatility,” said Mr. Eckel.
Our Portfolio totaled approximately $1.4 billion as of March 31, 2016, and included $387 million of energy efficiency investments, $955 million of renewable energy (wind and solar) transactions and $23 million of other sustainable infrastructure investments. The following is an analysis of our Portfolio by type of obligor and credit quality as of March 31, 2016:
First Quarter Financial Results
Hannon Armstrong reported first-quarter 2016 Core Earnings of $12.2 million, or $0.32 per share, as compared with Core Earnings of $7.4 million, or $0.27 per share, in first quarter 2015. The Core Total Revenue increase of approximately $11 millionwas offset by higher interest expense of approximately $5 million and higher Core Other Expenses, net of approximately $1 million.
As of March 31, 2016, leverage, as measured by our debt-to-equity ratio, was 2.3 to 1. This calculation excludes securitizations that are not consolidated on our balance sheet (where the collateral is typically financing receivables with U.S. government obligors).
“We continue to execute towards our 2.5 to 1 leverage target and utilize our long-standing securitization platform in order to minimize equity capital requirements in 2016,” said Chief Financial Officer Brendan Herron. “We have become more flexible in the timing of equity capital raises, which is especially important in periods of market volatility.”