- Declares dividend of $0.4220
per Class A common share(1) for
first quarter 2020 -
SAN FRANCISCO, March 2, 2020 /CNW/ -- Pattern Energy Group
Inc. (the "Company" or "Pattern Energy") (NASDAQ & TSX: PEGI)
today announced its financial results for the 2019 fourth quarter
and year end.
Highlights
(Comparisons made between fiscal 2019
and fiscal 2018 results, unless otherwise noted)
- Proportional gigawatt hours ("GWh") sold of 8,144 GWh
- Revenue of $541 million
- Net loss of $107 million
- Adjusted EBITDA of $359
million
- Cash available for distribution ("CAFD") of $172 million, which met full year guidance
- Declared a first quarter dividend of $0.4220 per Class A common share(1) or
$1.688 on an annualized basis,
subsequent to the end of the period, unchanged from the previous
quarter's dividend
- Acquired 251 megawatts ("MW") of owned capacity in two
facilities, Henvey Inlet Wind ("Henvey Inlet") in Ontario and Grady
Wind ("Grady") in New
Mexico
- Received $256 million in a
private placement of 10.4 million shares of perpetual preferred
stock (the "Series A Preferred Stock")
- Entered into a definitive merger agreement (the "Merger
Agreement") announced November 4,
2019, through which Canada Pension Plan Investment Board
("CPP Investments") will acquire Pattern Energy in an all-cash
transaction for $26.75 per share, and
concurrently CPP Investments and Riverstone Holdings LLC
("Riverstone") entered into an agreement pursuant to which, at or
following the completion of the proposed acquisition of Pattern
Energy by CPP Investments, CPP Investments and Riverstone will
combine Pattern Energy and Pattern Energy Group Holdings 2 LP
("Pattern Development") under common ownership, bringing together
the operating assets of Pattern Energy with the world class
development projects and capabilities of Pattern Development
"The assets continue to perform well with wind resource just
below our long-term average during the quarter," said Mike Garland, CEO of Pattern Energy. "We met our
2019 full year guidance for CAFD and the business continues to
perform in line with management's plan."
(1) Such dividend will only be payable in the event the
record date, which is March 31, 2020,
occurs prior to the effective time of the merger under the Merger
Agreement.
Financial and Operating Results
Pattern Energy sold 2,179,090 megawatt hours ("MWh") of
electricity on a proportional basis in the fourth quarter of 2019,
compared to 1,966,677 MWh sold in the same period last year.
Pattern Energy sold 8,144,403 MWh of electricity on a proportional
basis for the year ended December 31,
2019 (the "full year 2019"), compared to 7,988,192 MWh in
2018. The 11% improvement in the quarterly period was primarily due
to volume increases resulting from acquisitions and less favorable
wind conditions in 2018 partially offset by volume decreases due to
divestitures.
Net income was $40 million in the
fourth quarter of 2019, compared to a net loss of $22 million for the same period in 2018.
The increase in net income in the quarterly period was
primarily due to a one-time $125
million distribution related to a refinancing at South Kent
and Grand, partially offset by a $71
million pre-tax gain on the sale of K2 in 2018.
Net loss for the full year 2019 was $107
million compared to $69
million for the same period in 2018. The increase in net
loss for the annual period was primarily due to $53 million in accelerated deprecation mainly as
a result of the repowering at the Gulf Wind project, a $14 million increase in corrective maintenance
repairs, a $14 million increase in
contingent consideration payable to Pattern Energy Group LP as a
result of construction cost savings at Tsugaru and the completion
of construction at Grady and a $71
million decrease in other income resulting from the sale of
K2 in 2018. These decreases were partially offset by a $106 million increase in earnings from our
unconsolidated investments as a result of the suspension of equity
method accounting and the recognition of distributions through
earnings in 2019 and a decrease in our proportionate share of
losses at Pattern Development.
Adjusted EBITDA was $94 million
for the fourth quarter of 2019 compared to $81 million for the same period in 2018. The 16%
increase in the quarterly period was primarily due to a
$30 million increase in earnings due
to new projects acquired and a $7
million decrease in losses at our development investment
segment, partially offset by a $11
million decrease in earnings as a result of our divestiture
of K2 and a $12 million decrease in
earnings from projects fully operational in both periods.
Adjusted EBITDA was $359 million
for the full year 2019 compared to $372
million for 2018. The $13
million decrease in Adjusted EBITDA during 2019 was
primarily due to a $39 million
decrease in earnings as a result of our divestiture of K2, a
$5 million increase in losses at our
development investment segment and a $24
million decrease in earnings from projects fully operational
in both periods, partially offset by a $55
million increase in earnings due to new projects acquired.
The decrease in earnings from projects fully operational in both
periods was primarily due to increased corrective maintenance
repairs.
Cash available for distribution was $44
million for the fourth quarter of 2019, compared to
$35 million for the same period in
2018. The change in the quarterly period was primarily due to
$21 million earned by new projects
acquired, partially offset by a $10
million decrease in earnings from projects fully operational
in both periods and a $2 million
reduction as a result of divestitures.
Cash available for distribution was $172
million for the full year 2019 compared to $167 million for 2018. The $5 million increase in the annual period was
primarily due to $30 million earned
by new projects acquired, partially offset by a $14 million reduction as a result of divestitures
and an $11 million decrease in
earnings from projects fully operational in both periods. Based on
dividends paid during 2019, Pattern Energy's dividend payout ratio
was 96% of 2019 cash available for distribution.
Financial Guidance
In light of the expected closing of the Merger Agreement, the
Company is not providing a target range for 2020 full year cash
available for distribution at this time. Moreover, the Company has
not evaluated its 2020 performance outlook for cash available for
distribution for (among other things) the effect of the Merger
Agreement and other recent market conditions. For more information
about the Company's cash available for distribution, refer to the
definitive proxy statement the Company filed on February 4, 2020.
Common Dividend
Pattern Energy declared a dividend for the first quarter 2020,
payable on April 30, 2020, to common
equity holders of record on March 31,
2020 in the amount of $0.4220
per Class A common share. Such dividend will only be payable in the
event the record date, which is March 31,
2020, occurs prior to the effective time of the merger under
the Merger Agreement. The quarterly dividend represents
$1.688 on an annualized basis. The
amount of the first quarter 2020 dividend is unchanged from the
fourth quarter 2019 dividend.
Preferred Dividend
Pattern Energy declared a dividend, payable on April 30, 2020, to holders of record of the
Series A Preferred Stock on April 15,
2020, aggregating to approximately $4
million.
New Acquisitions
Pattern Energy acquired two wind projects, Henvey Inlet and
Grady, from Pattern Energy Group LP and Pattern Development,
respectively, for total cash consideration of $293 million.
- Pattern Energy acquired 100% of Pattern Energy Group LP's 50%
equity ownership interest in the 300 MW Henvey Inlet facility for
approximately $193 million, subject
to adjustment, for an owned interest of 150 MW. Henvey Inlet is
located on the northeast shore of Georgian Bay in Ontario and commenced commercial operation in
September 2019. The facility utilizes
87 Vestas 3.45 MW turbines and has a 20-year PPA with the
Independent Electricity System Operator for 100% of its
production.
- Pattern Energy acquired 51% of Pattern Development's Class B
member interest in the 220 MW Grady facility for approximately
$100 million for an owned interest of
101 MW. Grady is located in Curry County,
New Mexico and commenced commercial operation in
August 2019. The facility utilizes 84
Siemens Gamesa 2.625 MW turbines and has a 25-year PPA with
Sacramento Municipal Utility District for 100% of its production,
up to 200 MW.
New Financing Arrangement(2)
In October 2019, Pattern Energy
issued 10.4 million shares of Series A Perpetual Preferred Stock
with a par value of $260 million
issued at a 1.5% discount. The Series A Preferred Shares are
entitled to receive, when declared by the board of directors,
cumulative cash dividends at an initial annual rate of 5.625%,
based on the $25.00 per share
liquidation preference. The annual dividend rate shall increase by
0.5% every year starting on the third anniversary of issuance date
to a maximum of four escalations, or 7.625%. The Series A Preferred
Shares are entitled to receive 12.6% of any cash distributions,
including the return of capital, made by Pattern Development to the
Company or any of its subsidiaries not to exceed $3.25 per Series A Preferred Share. Pattern
Energy received net proceeds of $256
million which it used to fund the acquisition of Henvey
Inlet, partially repay borrowings under the revolving credit
facility and pay related expenses and fees.
(2) The consummation of the Merger Agreement would affect the
terms of the Series A Preferred Shares described herein.
Acquisition Pipeline
Pattern Development has a pipeline of development projects
totaling more than 10 gigawatts ("GW"). Pattern Energy has a right
of first offer ("ROFO") on the entire pipeline of acquisition
opportunities. The identified ROFO list stands at 1,065 MW of total
capacity and represents a portion of the pipeline of development
projects, which are subject to Pattern Energy's ROFO. Since its
IPO, Pattern Energy has purchased more than 1.9 GW from Pattern
Energy Group LP and Pattern Development.
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Capacity
(MW)
|
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Identified
ROFO Projects
|
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Status
|
|
Location
|
|
Construction
Start
|
|
Commercial
Operations
|
|
Contract
Type
|
|
Rated
(1)
|
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Pattern
Development
Owned (2)
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Sumita
|
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Late stage
development
|
|
Japan
|
|
2020
|
|
2022
|
|
PPA
|
|
100
|
|
55
|
|
Ishikari
|
|
Late stage
development
|
|
Japan
|
|
2020
|
|
2023
|
|
PPA
|
|
112
|
|
112
|
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Tohoku
Project(s)
|
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Mid-stage
development
|
|
Japan
|
|
2021/2022
|
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2024/2025
|
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PPA
|
|
453
|
|
319
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Corona Wind
Project(s)
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Late stage
development
|
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New Mexico
|
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2020
|
|
2021
|
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PPA
|
|
400
|
|
340
|
|
|
|
|
|
|
|
|
|
|
|
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1,065
|
|
826
|
|
(1) Rated capacity represents
the maximum electricity generating capacity of a project in MW. As
a result of weather and other conditions,a project will not operate
at its rated capacity at all times and the amount of electricity
generated may be less than its rated capacity.
The amount of
electricity generated may vary based on a variety of
factors.
(2) Pattern Development
owned capacity represents the maximum, or rated, electricity
generating capacity of the project in MW multiplied by Pattern
Development's percentage ownership interest in the distributable
cash flow of the project.
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Pattern Energy
Group Inc.
Consolidated
Statements of Operations
(In millions of
U.S. dollars, except share data)
|
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|
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Three months
ended
December 31,
|
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For the year
ended
December 31,
|
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2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Electricity
sales
|
$
|
144
|
|
|
$
|
110
|
|
|
$
|
517
|
|
|
$
|
464
|
|
|
Other
revenue
|
3
|
|
|
3
|
|
|
24
|
|
|
19
|
|
|
Total
revenue
|
147
|
|
|
113
|
|
|
541
|
|
|
483
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Project
expense
|
45
|
|
|
38
|
|
|
166
|
|
|
143
|
|
|
Transmission
costs
|
8
|
|
|
5
|
|
|
25
|
|
|
26
|
|
|
Depreciation,
amortization and accretion
|
82
|
|
|
84
|
|
|
318
|
|
|
250
|
|
|
Total cost of
revenue
|
135
|
|
|
127
|
|
|
509
|
|
|
419
|
|
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Gross profit
(loss)
|
12
|
|
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(14)
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|
|
32
|
|
|
64
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General and
administrative
|
13
|
|
|
11
|
|
|
47
|
|
|
40
|
|
|
Development
expense
|
1
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
Related party general
and administrative
|
6
|
|
|
3
|
|
|
18
|
|
|
15
|
|
|
Impairment
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
Total operating
expenses
|
20
|
|
|
14
|
|
|
79
|
|
|
62
|
|
|
Operating income
(loss)
|
(8)
|
|
|
(28)
|
|
|
(47)
|
|
|
2
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
(33)
|
|
|
(28)
|
|
|
(111)
|
|
|
(109)
|
|
|
Gain (loss) on
derivatives
|
3
|
|
|
1
|
|
|
6
|
|
|
17
|
|
|
Earnings in
unconsolidated investments, net
|
123
|
|
|
(12)
|
|
|
107
|
|
|
1
|
|
|
Early extinguishment
of debt
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(6)
|
|
|
Net earnings (loss)
on transactions
|
(9)
|
|
|
71
|
|
|
(14)
|
|
|
69
|
|
|
Other income
(expense), net
|
(2)
|
|
|
(2)
|
|
|
(5)
|
|
|
(11)
|
|
|
Total other
expense
|
82
|
|
|
24
|
|
|
(17)
|
|
|
(39)
|
|
|
Net loss before
income tax
|
74
|
|
|
(4)
|
|
|
(64)
|
|
|
(37)
|
|
|
Income tax
provision
|
34
|
|
|
18
|
|
|
43
|
|
|
32
|
|
|
Net income
(loss)
|
40
|
|
|
(22)
|
|
|
(107)
|
|
|
(69)
|
|
|
Net loss attributable
to noncontrolling interests
|
(17)
|
|
|
(9)
|
|
|
(76)
|
|
|
(211)
|
|
|
Net income (loss)
attributable to Pattern Energy
|
57
|
|
|
(13)
|
|
|
(31)
|
|
|
142
|
|
|
Series A preferred
stock dividends
|
$
|
(4)
|
|
|
$
|
—
|
|
|
$
|
(4)
|
|
|
$
|
—
|
|
|
Net income (loss)
attributable to common shareholders
|
$
|
53
|
|
|
$
|
(13)
|
|
|
$
|
(35)
|
|
|
$
|
142
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
97,615,483
|
|
|
97,476,708
|
|
|
97,603,555
|
|
|
97,456,407
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|
|
Diluted
|
106,308,984
|
|
|
97,476,708
|
|
|
97,603,555
|
|
|
97,651,501
|
|
|
Net income (loss)
per share attributable to Pattern Energy
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.55
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.35)
|
|
|
$
|
1.45
|
|
|
Diluted
|
$
|
0.54
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.35)
|
|
|
$
|
1.45
|
|
Adjusted EBITDA and Cash Available for Distribution Non-GAAP
Reconciliations
The following tables present a reconciliation of Adjusted EBITDA
and cash available for distribution to net income (loss), the most
directly comparable GAAP financial measure, for the periods
indicated (in millions):
|
|
Three months
ended
December 31,
|
|
For the year
ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
40
|
|
|
$
|
(22)
|
|
|
$
|
(107)
|
|
|
$
|
(69)
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
31
|
|
|
28
|
|
|
107
|
|
|
107
|
|
|
Income tax
provision
|
|
34
|
|
|
18
|
|
|
43
|
|
|
32
|
|
|
Depreciation,
amortization and accretion
|
|
93
|
|
|
92
|
|
|
350
|
|
|
280
|
|
|
EBITDA
|
|
$
|
198
|
|
|
$
|
116
|
|
|
$
|
393
|
|
|
$
|
350
|
|
|
Unrealized (gain)
loss on derivatives
|
|
(2)
|
|
|
6
|
|
|
6
|
|
|
5
|
|
|
Early extinguishment
of debt
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
Impairment
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
Gain on asset
sales
|
|
—
|
|
|
(71)
|
|
|
—
|
|
|
(71)
|
|
|
Adjustments for
unconsolidated investments(1)
|
|
(118)
|
|
|
—
|
|
|
(126)
|
|
|
—
|
|
|
Other(2)
|
|
2
|
|
|
—
|
|
|
17
|
|
|
2
|
|
|
Plus,
proportionate share from unconsolidated investments:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
|
10
|
|
|
9
|
|
|
31
|
|
|
38
|
|
|
Income tax
provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Depreciation,
amortization and accretion
|
|
9
|
|
|
9
|
|
|
30
|
|
|
35
|
|
|
(Gain) loss on
derivatives
|
|
(5)
|
|
|
6
|
|
|
8
|
|
|
(1)
|
|
|
Adjusted
EBITDA
|
|
$
|
94
|
|
|
$
|
81
|
|
|
$
|
359
|
|
|
$
|
372
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Distributions from
unconsolidated investments(3)
|
|
10
|
|
|
10
|
|
|
45
|
|
|
58
|
|
|
Network upgrade
reimbursement
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Release of restricted
cash
|
|
1
|
|
|
—
|
|
|
7
|
|
|
4
|
|
|
Stock-based
compensation
|
|
1
|
|
|
1
|
|
|
5
|
|
|
5
|
|
|
Pay-go
contribution
|
|
6
|
|
|
4
|
|
|
6
|
|
|
4
|
|
|
Other
|
|
8
|
|
|
4
|
|
|
13
|
|
|
1
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Unconsolidated
investment earnings and proportionate shares
for EBITDA
|
|
(19)
|
|
|
(15)
|
|
|
(57)
|
|
|
(85)
|
|
|
Interest expense,
less non-cash items and interest income
|
|
(29)
|
|
|
(25)
|
|
|
(99)
|
|
|
(99)
|
|
|
Income
taxes
|
|
(1)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
Non-expansionary
capital expenditures
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
Distributions to
noncontrolling interests
|
|
(8)
|
|
|
(9)
|
|
|
(41)
|
|
|
(38)
|
|
|
Principal payments
paid from operating cash flows
|
|
(14)
|
|
|
(12)
|
|
|
(58)
|
|
|
(52)
|
|
|
Preferred stock
dividend
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
Cash available for
distribution
|
|
$
|
44
|
|
|
$
|
35
|
|
|
$
|
172
|
|
|
$
|
167
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
97,615,483
|
|
|
97,476,708
|
|
|
97,603,555
|
|
|
97,456,407
|
|
|
|
|
|
|
|
|
|
|
|
Cash available for
distribution per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
|
$
|
0.36
|
|
|
$
|
1.76
|
|
|
$
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amount consists of gains on distributions from unconsolidated
investments of $132 million and $142 million for the three and
twelve months ended
December 31, 2019, respectively, and
suspended equity earnings of $13 million and $16 million for the
three and twelve months ended December 31,
2019, respectively.
(2)
Included in Other for the three and twelve months ended December
31, 2019 is Development expense of $1 million and $14 million,
respectively,
related to the change in contingent
consideration for the purchase of the Japan Acquisition and the
Broadview Project acquisition, more fully described
in the Company's 2019 Form 10-K, Note
5, Acquisitions and Note 15, Fair Value
Measurements.
(3)
For the three and twelve months ended December 31, 2019, amount
excludes a one-time distribution of $125 million related to the
refinancing at South
Kent and Grand.
|
|
Pattern Energy
Group Inc.
Consolidated
Balance Sheets
(In millions of
U.S. dollars, except share and par value data)
|
|
December
31,
|
|
2019
|
|
2018
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
156
|
|
|
$
|
101
|
|
|
Restricted
cash
|
—
|
|
|
4
|
|
|
Counterparty
collateral
|
—
|
|
|
6
|
|
|
Trade
receivables
|
81
|
|
|
50
|
|
|
Related party
receivable
|
17
|
|
|
7
|
|
|
Derivative assets,
current
|
3
|
|
|
14
|
|
|
Prepaid
expenses
|
15
|
|
|
18
|
|
|
Deferred financing
costs, current, net of accumulated amortization of $6 and $3 as
of December 31, 2019 and December 31, 2018, respectively
|
2
|
|
|
2
|
|
|
Sales tax
receivable
|
33
|
|
|
1
|
|
|
Notes receivable,
current
|
13
|
|
|
—
|
|
|
Other current
assets
|
17
|
|
|
8
|
|
|
Total current
assets
|
337
|
|
|
211
|
|
|
Restricted
cash
|
63
|
|
|
18
|
|
|
Major construction
advances
|
39
|
|
|
84
|
|
|
Construction in
progress
|
545
|
|
|
259
|
|
|
Property, plant and
equipment, net
|
4,818
|
|
|
4,119
|
|
|
Unconsolidated
investments
|
298
|
|
|
270
|
|
|
Derivative
assets
|
8
|
|
|
9
|
|
|
Deferred financing
costs
|
9
|
|
|
8
|
|
|
Net deferred tax
assets
|
2
|
|
|
5
|
|
|
Intangible assets,
net
|
808
|
|
|
219
|
|
|
Goodwill
|
58
|
|
|
58
|
|
|
Notes
receivable
|
79
|
|
|
—
|
|
|
Other
assets
|
109
|
|
|
34
|
|
|
Total
assets
|
$
|
7,173
|
|
|
$
|
5,294
|
|
|
|
|
|
|
Liabilities,
mezzanine equity and equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
68
|
|
|
$
|
67
|
|
|
Accrued construction
costs
|
112
|
|
|
27
|
|
|
Counterparty
collateral liability
|
—
|
|
|
6
|
|
|
Accrued
interest
|
15
|
|
|
14
|
|
|
Dividends
payable
|
46
|
|
|
42
|
|
|
Derivative
liabilities, current
|
12
|
|
|
2
|
|
|
Revolving credit
facility, current
|
75
|
|
|
198
|
|
|
Current portion of
long-term debt, net
|
414
|
|
|
56
|
|
|
Contingent
liabilities, current
|
133
|
|
|
31
|
|
|
Asset retirement
obligations, current
|
21
|
|
|
24
|
|
|
Other current
liabilities
|
33
|
|
|
11
|
|
|
Total current
liabilities
|
929
|
|
|
478
|
|
|
Revolving credit
facility
|
25
|
|
|
25
|
|
|
Long-term debt,
net
|
2,887
|
|
|
2,004
|
|
|
Derivative
liabilities
|
103
|
|
|
31
|
|
|
Net deferred tax
liabilities
|
151
|
|
|
117
|
|
|
Intangible
liabilities, net
|
44
|
|
|
56
|
|
|
Contingent
liabilities
|
35
|
|
|
142
|
|
|
Asset retirement
obligations
|
242
|
|
|
185
|
|
|
Other long-term
liabilities
|
146
|
|
|
71
|
|
|
Contract
liability
|
27
|
|
|
26
|
|
|
Total
liabilities
|
4,589
|
|
|
3,135
|
|
|
Commitments and
contingencies
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
Series A Preferred
Stock, $0.01 par value per share; 100,000,000 preferred shares
authorized; 10,400,000 and 0 shares of Series A Preferred Stock
outstanding as of
December 31, 2019 and December 31, 2018, respectively
|
234
|
|
|
—
|
|
|
Equity:
|
|
|
|
|
Class A common stock,
$0.01 par value per share; 500,000,000 shares authorized;
98,199,909 and 98,051,629 shares outstanding as of December 31,
2019 and
December 31, 2018, respectively
|
1
|
|
|
1
|
|
|
Additional paid-in
capital
|
968
|
|
|
1,130
|
|
|
Accumulated
loss
|
(58)
|
|
|
(27)
|
|
|
Accumulated other
comprehensive loss
|
(69)
|
|
|
(52)
|
|
|
Treasury stock, at
cost; 289,690 and 223,040 shares of Class A common stock as of
December 31, 2019 and December 31, 2018, respectively
|
(6)
|
|
|
(5)
|
|
|
Total equity before
noncontrolling interests
|
836
|
|
|
1,047
|
|
|
Noncontrolling
interests
|
1,514
|
|
|
1,112
|
|
|
Total
equity
|
2,350
|
|
|
2,159
|
|
|
Total liabilities,
mezzanine equity and equity
|
$
|
7,173
|
|
|
$
|
5,294
|
|
|
Pattern Energy
Group Inc.
Consolidated
Statements of Cash Flows
(In millions of
U.S. dollars)
|
|
For the year ended
December 31,
|
|
2019
|
|
2018
|
|
Operating
activities
|
|
|
|
|
Net loss
|
$
|
(107)
|
|
|
$
|
(69)
|
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
amortization and accretion
|
353
|
|
|
280
|
|
|
Impairment
expense
|
—
|
|
|
7
|
|
|
Loss on
derivatives
|
5
|
|
|
4
|
|
|
Stock-based
compensation
|
5
|
|
|
5
|
|
|
Deferred
taxes
|
38
|
|
|
16
|
|
|
Earnings in
unconsolidated investments, net
|
(107)
|
|
|
(1)
|
|
|
Distributions from
unconsolidated investments
|
40
|
|
|
48
|
|
|
Gain on
transactions
|
—
|
|
|
(71)
|
|
|
Early extinguishment
of debt
|
—
|
|
|
6
|
|
|
Other reconciling
items
|
—
|
|
|
1
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Counterparty
collateral asset
|
6
|
|
|
24
|
|
|
Trade
receivables
|
(13)
|
|
|
1
|
|
|
Other current
assets
|
(19)
|
|
|
15
|
|
|
Other assets
(non-current)
|
(11)
|
|
|
(6)
|
|
|
Accounts payable and
other accrued liabilities
|
(24)
|
|
|
3
|
|
|
Counterparty
collateral liability
|
(6)
|
|
|
(24)
|
|
|
Contract
liability
|
—
|
|
|
34
|
|
|
Contingent
liabilities
|
5
|
|
|
—
|
|
|
Other current
liabilities
|
(1)
|
|
|
26
|
|
|
Other long-term
liabilities
|
3
|
|
|
(20)
|
|
|
Net cash provided by
operating activities
|
167
|
|
|
279
|
|
|
Investing
activities
|
|
|
|
|
Cash paid for
acquisitions and investments, net of cash and restricted cash
acquired
|
(326)
|
|
|
(415)
|
|
|
Proceeds from sale of
investments, net of cash and restricted cash distributed
|
—
|
|
|
214
|
|
|
Capital
expenditures
|
(264)
|
|
|
(181)
|
|
|
Distributions from
unconsolidated investments
|
131
|
|
|
10
|
|
|
Other
assets
|
(8)
|
|
|
(1)
|
|
|
Issuance of notes
receivable
|
(4)
|
|
|
—
|
|
|
Net cash used in
investing activities
|
(471)
|
|
|
(373)
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
preferred share offering
|
$
|
256
|
|
|
$
|
—
|
|
|
Dividends
paid
|
(165)
|
|
|
(165)
|
|
|
Preferred share
issuance costs
|
(1)
|
|
|
—
|
|
|
Capital contributions
- noncontrolling interests
|
28
|
|
|
98
|
|
|
Capital distributions
- noncontrolling interests
|
(41)
|
|
|
(38)
|
|
|
Payment for financing
fees
|
(5)
|
|
|
(9)
|
|
|
Proceeds from
long-term debt and other
|
454
|
|
|
226
|
|
|
Repayment of
long-term debt and other
|
(57)
|
|
|
(186)
|
|
|
Proceeds from
short-term debt
|
612
|
|
|
562
|
|
|
Repayment of
short-term debt
|
(654)
|
|
|
(402)
|
|
|
Cash paid for
contingent consideration
|
(21)
|
|
|
—
|
|
|
Proceeds (payments)
for termination of designated derivatives
|
(3)
|
|
|
1
|
|
|
Other financing
activities
|
(3)
|
|
|
(4)
|
|
|
Net cash provided by
financing activities
|
400
|
|
|
83
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
—
|
|
|
(4)
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
96
|
|
|
(15)
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
123
|
|
|
138
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
219
|
|
|
$
|
123
|
|
|
Supplemental
disclosures
|
|
|
|
|
Cash payments for
income taxes
|
$
|
16
|
|
|
$
|
2
|
|
|
Cash payments for
interest expense
|
$
|
100
|
|
|
$
|
97
|
|
|
Schedule of
non-cash activities
|
|
|
|
|
Change in property,
plant and equipment
|
$
|
33
|
|
|
$
|
224
|
|
|
Change in additional
paid-in capital
|
$
|
2
|
|
|
$
|
—
|
|
|
Accrual of equity
issuance costs
|
$
|
1
|
|
|
$
|
—
|
|
|
Preferred share
dividends declared
|
$
|
4
|
|
|
$
|
—
|
|
|
Purchase
consideration
|
$
|
3
|
|
|
$
|
—
|
|
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 28 renewable
energy projects with an operating capacity of 4.4 GW in
the United States, Canada and Japan that use proven, best-in-class
technology. 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 payment of the first quarter
2020 dividend, the ability to consummate the Merger Agreement and
the timing of any such consummation, statements with respect to
financial guidance, and the ability to consummate acquisitions from
the identified ROFO 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 resulting from 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
Matt
Dallas
917-363-1333
matt.dallas@patternenergy.com
|
|
Investor
Relations
Ross
Marshall
416-526-1563
ross.marshall@loderockadvisors.com
|
|
View original
content:http://www.prnewswire.com/news-releases/pattern-energy-reports-fourth-quarter-and-year-end-2019-financial-results-301014179.html
SOURCE Pattern Energy Group Inc.