8point3 Energy Partners LP recently announced financial results for its first fiscal quarter ended February 29, 2016.
• Recorded Cash Available for Distribution (“CAFD”) of $18.3 million, approximately $3 million above Q1 guidance
• Recently completed acquisitions – 50 MW (AC) Hooper project, 40 MW (AC) Kingbird project
• Declared Q1 2016 distribution of $0.2246 per share, an increase of 3.5 percent over the Q4 2015 distribution
• Forecasts Q2 2016 distribution of approximately $0.232 per share, an increase of 3.5 percent compared to the Q1 2016 distribution
For the first quarter of fiscal 2016, 8point3 Energy Partners reported revenue of $7.1 million, a net loss of $7.1 million and adjusted EBITDA of $7.7 million. CAFD for the quarter was $18.3 million and exceeded the company’s Q1 guidance by approximately $3 million. “Our first quarter results reflect the continued strong performance of our high quality, U.S. solar project asset base as we exceeded our CAFD guidance for the quarter,” said Chuck Boynton, 8point3 Energy Partners CEO. “As of the end of February, our portfolio consisted of 432 MW of solar generating assets, not including our recently acquired 20 MW Kern County project which is expected to contribute approximately $3.3 million in additional annual pre-tax CAFD when all three phases are operational later this year. We were also pleased to announce that we have agreed to acquire an interest in First Solar’s 40 MW Kingbird project as well as an interest in SunPower’s operating 50 MW Hooper project. These two new projects are expected to generate approximately $9 million in combined annual pre-tax CAFD and have 20 year contract terms. When completed, these two new projects bring our total generation assets to more than 542 MW.”
Additionally, as recently announced, the partnership has agreed to make certain adjustments to the ROFO portfolio. This decision was reached as a result of the recent extension of the federal Investment Tax Credit, which provides an increased opportunity to acquire power plant projects beyond 2016. The partnership believes that these adjustments better align the ROFO portfolio with its targeted long-term growth plan while maintaining its stated targeted annual distribution growth. The partnership previously announced that its Board of Directors has declared a first quarter distribution for its Class A shares of $0.2246 per share. The first quarter distribution will be paid on April 14, 2016.
As of February 29, 2016, 8point3 Energy Partners had total liquidity of more than $240 million comprised of $65 million in cash on its balance sheet, $151 million available on its five-year revolving credit facility and $25 million available through a delayed draw on its debt facility. The partnership acquired the Kingbird and Hooper projects during the second quarter for approximately $113 million using cash on hand and existing credit facilities.
“We were pleased to meet or exceed our first quarter financial goals in addition to raising our quarterly shareholder distribution by 3.5 percent,” said Mark Widmar, 8point3 Energy Partners CFO. “Our liquidity position remains strong and with the recent additions of the Hooper and Kingbird projects when combined with our existing portfolio, we are well positioned to support our targeted 12 to 15 percent annual distribution growth rate through 2017.”