STAMFORD, Conn.–(BUSINESS WIRE)--Altus Power, Inc. (NYSE: AMPS), a premier commercial-scale clean electrification company, today announced its financial results for the third quarter of 2022.
“We are thrilled to be reporting our best quarter ever in terms of revenue and adjusted EBITDA. During the third quarter we took steps to significantly expand our operating portfolio of commercial-scale solar assets, which contribute to our profitable growth,” commented Gregg Felton, Co-CEO of Altus Power. “We are pleased to welcome all of these new long-term customers to Altus Power and look forward to expanding our relationships.”
“This quarter’s performance illustrates our determination to grow profitably in a challenging market environment,” added Lars Norell, Co-CEO of Altus Power. “Our construction team is working in close collaboration with CBRE Project Management to move additional assets into construction throughout the United States.”
Third Quarter Financial Results
Operating revenues during the third quarter of 2022 totaled $30.4 million, compared to $20.1 million during the same period of 2021, an increase of 51%. The increase reflects the growth of megawatts installed over the past twelve months. Third quarter 2022 GAAP net loss totaled $96.6 million, compared to net loss of $1.3 million for the same period last year. The increase in net loss during the quarter was driven by the $102.0 million loss from remeasurement of both warrants and alignment shares. This remeasurement is non-cash and is driven by the appreciation of Altus Power common share price between June 30, 2022, and September 30, 2022. Both the warrants and alignment shares are revalued quarterly according to our share price at the end of each quarter.
Adjusted EBITDA* during the third quarter of 2022 was $19.4 million, compared to $11.7 million for the third quarter of 2021, a 66% increase. The quarter over quarter growth in adjusted EBITDA* is primarily the result of increased revenue from additional solar energy facilities, partially offset by an increase in our general and administrative expenses. Adjusted EBITDA margin* during the third quarter of 2022 was 64%.
Closing of DESRI Portfolios
Altus Power announced today that the company has closed on the purchase of approximately 88 MWs of operating solar assets from D.E. Shaw Renewable Investments, L.L.C. (DESRI) which were previously under definitive agreements as announced on September 27, 2022.
Balance Sheet and Liquidity
Altus Power ended the third quarter of 2022 with $290.9 million in unrestricted cash and cash equivalents, and $545.0 million of total debt. The Company expects to fund its operations using available cash, additional borrowings under its debt facilities and third-party tax equity financing.
New Revolving Credit Facility
Today Altus Power announced it has obtained commitments with a syndicate of banks for up to $200 million revolving credit facility. This facility is expected to maximize the Company’s financial flexibility and enhance its liquidity. The company is currently in the process of definitive documentation and will update the market if and when completed.
Completed Warrant Redemption
As announced on October 20, 2022 the Company completed redemption of all of its outstanding public and private warrants in exchange for a total of 4,058,845 shares of Class A Common Stock and net cash proceeds of $83,061. In connection with the redemption, the Public Warrants ceased trading on the New York Stock Exchange on October 14, 2022 and were delisted. Please refer to the Companies press releases announcing the offering on September 15, 2022, completion of the offering on October 20, 2022 as well as our Warrant Holder redemption notice and Warrant Holder FAQ documents for additional information.
2022 Guidance
Altus Power’s 2022 adjusted EBITDA* is expected to be near the low-end of its previous guidance. The primary driver for the revision to the company’s adjusted EBITDA* outlook was the extended time to close its previously announced acquisition, which has now been completed. The Company’s expectation for 2022 adjusted EBITDA margin* remains unchanged in the mid-50% range.
About Altus Power, Inc.
Altus Power, based in Stamford, Connecticut, is a premier commercial-scale clean electrification company serving commercial, industrial, public sector and community solar customers with end-to-end solutions. Altus Power originates, develops, owns and operates locally-sited solar generation, energy storage and charging infrastructure across the nation. Visit www.altuspower.com to learn more.
