STAMFORD, Conn., Nov. 16, 2021 /PRNewswire/ -- Altus Power, Inc.
("Altus Power" or the "Company") today announced financial and
operational results for the third quarter ended September 30, 2021.
Altus Power previously announced an agreement for a business
combination with CBRE Acquisition Holdings, Inc. (NYSE: CBAH),
which is expected to result in Altus Power becoming a public
company listed on the New York Stock Exchange. CBAH is a
special-purpose acquisition company sponsored by a subsidiary of
CBRE Group, Inc. As previously announced, a general meeting of
stockholders is scheduled to be held December 6, 2021 to approve the business
combination and other proposals.
Altus Power Financial Results and Operational Updates
- Third quarter 2021 revenues of $20.1
million; up 53% compared to the same period in 2020
- Third quarter 2021 net loss of $1.3
million compared to net income of $1.9 million for the same period in
2020
- Third quarter 2021 adjusted EBITDA of $12.0 million; up 58% compared to the same period
in 2020
- Net loss of $1.5 million for the
first three quarters of 2021 due largely to expenses associated
with the extinguishment of debt
- Adjusted EBITDA of $30.5 million
for the first three quarters of 2021
- $44.3 million of cash and
availability under credit facilities as of September 30, 2021
- Completed acquisition of 79 MW portfolio of solar generation
assets from True Green; added a new state, Tennessee, to Altus Power's portfolio of
operating assets
- Maintain 900+ megawatts (MW) of actionable pipeline, providing
future visibility
- Moved into expanded headquarters in Stamford, CT to accommodate growing employee
count
Altus Power Recent Business Highlights
- Announced award of 35 MW of community solar projects for
development in New Jersey to Altus
Power, in partnership with Blackstone's portfolio company, Link
Logistics
- Announced acquisition of solar generation and energy storage
assets in Hawaii
- Announced acquisition of 9.9 MW of operational solar generation
assets in New Jersey
- Announced appointment of Julia
Sears to the new position of Chief Digital Officer
Gregg Felton, Co-CEO of Altus
Power, commented, "During the third quarter, Altus Power continued
to execute on its plans, both operational and financial. We
acquired the True Green assets and additional solar and energy
storage assets throughout the U.S. We remained focused on our
growth plans, including advancing our new partnership with CBRE. We
are accomplishing what we set out to do since our inception as a
company: delivering end-to-end clean electrification solutions to
our customers, and doing so profitably. Altus Power's unique market
position and approach, investment grade funding facilities, and
industry partnerships position us well for success now and into the
future."
Third Quarter 2021 Financial Results
Revenue increased to $20.1 million
for the three months ended September 30,
2021, an increase of $7.1
million compared to the three months ended September 30, 2020. Revenue increased to
$50.2 million for the nine months
ended September 30, 2021, an increase
of $16.2 million compared to the nine
months ended September 30, 2020.
These increases were primarily the result of an increase in the
number of Altus Power solar energy systems in service subsequent to
September 30, 2020.
Net loss was $1.3 million for the
three months ended September 30, 2021
compared to net income of $1.9
million for the three months ended September 30, 2020, a decrease of $3.2 million, partially due to loss on
extinguishment of debt related to the upsized senior funding
facility. Adjusted EBITDA was $12.0
million for the three months ended September 30, 2021 compared to $7.6 million for the three months ended
September 30, 2020, an increase of
$4.4 million. Net loss was
$1.5 million for the nine months
ended September 30, 2021 compared to
net income of $1.5 million for the
nine months ended September 30, 2020,
a decrease of $3.0 million.
This decrease was largely the result of expenses associated with
the extinguishment of debt related to the upsized senior funding
facility. Adjusted EBITDA was $30.5
million for the nine months ended September 30, 2021 compared to $19.9 million for the nine months ended
September 30, 2020, an increase of
$10.6 million. These increases in
adjusted EBITDA were the result of revenue growth from new solar
energy systems in service increasing at a faster rate than
expenses.
The Company ended the third quarter with $34.3 million of cash and $10.0 million of availability on its credit
facility, for a total of $44.3
million of available liquidity.
Business Highlights
Altus Power would like to highlight some recent accomplishments
to demonstrate our excellence in execution and delivery of our
growth plan, including but not limited to the following recent
announcements:
On November 8, Altus Power and
Link Logistics, operator of the largest portfolio of high-quality
logistics real estate assets located exclusively in the U.S.,
announced plans to build and operate a portfolio of rooftop
community solar projects to serve approximately 10,000 residential
customers throughout the state of New
Jersey with renewable energy. These ambitious programs will
support the state's clean energy goals, which we expect to produce
savings for residential customers with the majority of the clean
energy to be provided to historically underserved communities
throughout the state.
On November 1, Altus Power
announced it had acquired a portfolio of operating energy storage
and solar generation assets in Hawaii that support clean energy goals and
produce savings for local commercial entities, universities,
schools and municipal customers.
On October 25, Altus Power
announced that it acquired a 9.9 MW solar project in Lafayette Township, New Jersey. This project delivers power to
local utilities and receives NJ solar renewable energy credits.
On October 19, Altus Power
announced the operationalization of its tenth project in the Solar
Massachusetts Renewable Target (SMART) program, located in
Hinsdale, Massachusetts. The 4.2
MW solar system is expected to generate nearly 5,000 MWhs of clean
electricity per year, saving the equivalent of approximately 3,500
tons of CO2 emissions annually.
On October 6, Altus Power and CBAH
held an Analyst Day where the Altus Power and CBAH management teams
reviewed Altus Power's performance milestones to-date as well as
the strategic framework for Altus Power's next phase of
transformation and growth. Some of the topics covered included
Altus Power's current business and go-forward strategy within
commercial and industrial (C&I) solar generation, community
solar, and energy storage; highlights of Altus Power's strong
relationships with current and future investors, including CBRE and
Blackstone; and commentary on
Altus Power's end-to-end digital technology and analytics
capabilities.
On September 30, Altus Power
announced that it had completed a sale leaseback tax equity
structure for several SMART solar projects in Massachusetts and several community solar
projects in Minnesota. Due to its
long-standing funding relationship with Fifth Third Bank, National
Association, which has been a financing partner of Altus Power
since January 2020, Altus Power was
able to efficiently expand into this additional type of tax equity
structure with Fifth Third Bank.
Altus Power looks forward to continuing to deliver additional
updates on our growth strategy and accomplishments.
Key Hires
Altus Power has increased its number of employees by 64% from
the end of the second quarter of 2021 and made several key senior
hires during the third and fourth quarters.
Altus Power hired Julia Sears as
Chief Digital Officer, who will oversee Altus Power's technology
strategy, which includes creating digital applications for
traditional commercial, industrial, and public clients as well as
for Altus' B2C community solar clients and generating innovative
digital solutions for Altus' products and services in energy
generation, energy storage, EV charging, and demand and supply
chain management.
Altus Power appointed Steve D'Agostino to the new position of
Head of Analytics. In this position, Mr. D'Agostino leads the
Company's efforts to enhance Altus Power's analytics platform to
better track the delivery of benefits to the Company's customers
and provide real time analysis of the financial performance of
Altus Power's assets for the benefit of all stakeholders.
Use of Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. ("GAAP"). We believe
certain financial measures, such as Adjusted EBITDA provide users
of our financial statements with supplemental information that may
be useful in evaluating our business. The presentation of non-GAAP
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) plus net interest
expense, depreciation, amortization and accretion expense, income
tax expense, acquisition and entity formation costs, non-cash
compensation expense, and excluding the effect of certain
non-recurring items we do not consider to be indicative of our
ongoing operating performance such as, but not limited to, state
grants, and other miscellaneous items of other income and
expenses.
Adjusted EBITDA is a non-GAAP financial measure that we use as a
performance measure. We believe that investors and securities
analysts also use Adjusted EBITDA in evaluating our operating
performance. This measurement is not recognized in accordance with
GAAP and should not be viewed as an alternative to GAAP measures of
performance. The GAAP measure most directly comparable to adjusted
EBITDA is net income. The presentation of adjusted EBITDA should
not be construed to suggest that our future results will be
unaffected by non-cash or non-recurring items. In addition, our
calculation of adjusted EBITDA is not necessarily comparable to
adjusted EBITDA as calculated by other companies.
We believe Adjusted EBITDA is useful to management, investors
and analysts in providing a measure of core financial performance
adjusted to allow for comparisons of results of operations across
reporting periods on a consistent basis. These adjustments are
intended to exclude items that are not indicative of the ongoing
operating performance of the business. Adjusted EBITDA is also used
by our management for internal planning purposes, including our
consolidated operating budget, and by our board of directors in
setting performance-based compensation targets. Adjusted EBITDA
should not be considered an alternative to but viewed in
conjunction with GAAP results, as we believe it provides a more
complete understanding of ongoing business performance and trends
than GAAP measures alone. Adjusted EBITDA has limitations as an
analytical tool, and you should not consider it in isolation or as
a substitute for analysis of our results as reported under
GAAP.
GAAP to Non-GAAP Reconciliation
|
Q3
|
YTD
|
|
in
millions
|
Q3'21
|
Q3'20
|
As of Sept.
30,'21
|
As of Sept.
30, '20
|
|
GAAP Net (loss)
income
|
$ (1.3)
|
$ 1.9
|
$(1.5)
|
$1.5
|
|
Income tax
benefit
|
(2.5)
|
(1.1)
|
(1.5)
|
(0.9)
|
|
Interest expense,
net
|
5.2
|
3.6
|
14.0
|
10.3
|
|
Depreciation,
amortization and accretion expense
|
5.3
|
3.0
|
14.2
|
8.4
|
|
Non-cash
compensation expense
|
0
|
0
|
0.1
|
0.1
|
|
Acquisition and
entity formation costs
|
1.0
|
0.1
|
1.2
|
0.4
|
|
Other (income)
expense, net
|
4.3
|
0.1
|
4.0
|
0.1
|
|
Adjusted
EBITDA
|
12.0
|
7.6
|
30.5
|
19.9
|
Important Information About the Business Combination and
Where to Find It
CBAH has filed with the U.S. Securities and Exchange Commission
("SEC") a Registration Statement on Form S-4 (the "Registration
Statement"), which includes a proxy statement/prospectus in
connection with the proposed business combination between Altus
Power and CBAH (the "business combination") and the other
transactions contemplated by the business combination agreement
entered into by Altus Power and CBAH. The Registration Statement
was declared effective by the SEC on November 5, 2021 and CBAH also filed the
definitive proxy statement/prospectus with respect to the business
combination on that date. CBAH has mailed a definitive proxy
statement/prospectus and other relevant documents to its
stockholders of record as of October 27,
2021, the record date for the Special Meeting. CBAH's
stockholders and other interested persons are advised to read the
definitive proxy statement/prospectus in connection with CBAH's
solicitation of proxies for its stockholders' Special Meeting to be
held to approve the business combination because the proxy
statement/prospectus contains important information about CBAH,
Altus Power and the business combination. Stockholders will also be
able to obtain copies of the Registration Statement and the proxy
statement/prospectus, without charge at the SEC's website at
www.sec.gov or by directing a request to CBRE Acquisition Holdings,
Inc., 2100 McKinney Avenue, Suite 1250, Dallas, TX 75201.
Participants in the Solicitation
CBAH, Altus Power and certain of their respective directors and
officers may be deemed participants in the solicitation of proxies
of CBAH's stockholders with respect to the approval of the business
combination. CBAH and Altus Power urge investors, stockholders and
other interested persons to read the Registration Statement and the
definitive proxy statement/prospectus and exhibits thereto, as well
as other documents filed with the SEC in connection with the
business combination, as these materials will contain important
information about Altus Power, CBAH and the business combination.
Information regarding CBAH's directors and officers and a
description of their interests in CBAH is contained in the
Registration Statement and definitive proxy
statement/prospectus.
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "could", "continue", "expect", "estimate",
"may", "plan", "outlook", "future" and "project" and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These statements,
which involve risks and uncertainties, relate to analyses and other
information that are based on forecasts of future results and
estimates of amounts not yet determinable and may also relate to
CBAH's and Altus Power's future prospects, developments and
business strategies. In particular, such forward-looking statements
include statements concerning the timing of the business
combination, the business plans, objectives, expectations and
intentions of CBAH once the business combination and the other
transactions contemplated thereby (the "Transactions") and change
of name are complete ("New Altus"), and New Altus' estimated and
future results of operations, business strategies, competitive
position, industry environment and potential growth opportunities.
These statements are based on CBAH's or Altus Power's management's
current expectations and beliefs, as well as a number of
assumptions concerning future events.
Such forward-looking statements are subject to known and unknown
risks, uncertainties, assumptions and other important factors, many
of which are outside CBAH's or Altus Power's control, that could
cause actual results to differ materially from the results
discussed in the forward-looking statements. These risks,
uncertainties, assumptions and other important factors include, but
are not limited to: (1) the occurrence of any event, change or
other circumstances that could give rise to the termination of the
business combination agreement; (2) the inability to complete the
Transactions due to the failure to obtain approval of the
stockholders of CBAH or Altus Power or other conditions to closing
in the business combination agreement; (3) the ability of New Altus
to meet NYSE's listing standards (or the standards of any other
securities exchange on which securities of the public entity are
listed) following the business combination; (4) the inability to
complete the private placement of common stock of CBAH to certain
institutional accredited investors; (5) the risk that the
announcement and consummation of the Transactions disrupts Altus
Power's current plans and operations; (6) the ability to recognize
the anticipated benefits of the Transactions, which may be affected
by, among other things, competition, the ability of New Altus to
grow and manage growth profitably, maintain relationships with
customers, business partners, suppliers and agents and retain its
management and key employees; (7) costs related to the
Transactions; (8) changes in applicable laws or regulations and
delays in obtaining, adverse conditions contained in, or the
inability to obtain necessary regulatory approvals required to
complete the Transactions; (9) the possibility that Altus Power and
New Altus may be adversely affected by other economic, business,
regulatory and/or competitive factors; (10) the impact of COVID-19
on Altus Power's and New Altus' business and/or the ability of the
parties to complete the Transactions; (11) the outcome of any legal
proceedings that may be instituted against CBAH, Altus Power, New
Altus or any of their respective directors or officers, following
the announcement of the Transactions; and (12) the failure to
realize anticipated pro forma results and underlying assumptions,
including with respect to estimated stockholder redemptions and
purchase price and other adjustments.
Additional factors that could cause actual results to differ
materially from those expressed or implied in forward-looking
statements can be found in CBAH's most recent annual report on Form
10-K, subsequently filed quarterly reports on Form 10-Q and current
reports on Form 8-K, which are available, free of charge, at the
SEC's website at www.sec.gov, and are provided in the Registration
Statement and CBAH's proxy statement/prospectus. New risks and
uncertainties arise from time to time, and it is impossible for us
to predict these events or how they may affect us. You are
cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made, and CBAH and
Altus Power undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
changes in expectations, future events or otherwise.
This communication is not intended to be all-inclusive or to
contain all the information that a person may desire in considering
an investment in CBAH and is not intended to form the basis of an
investment decision in CBAH. All subsequent written and oral
forward-looking statements concerning CBAH and Altus Power, the
Transactions or other matters and attributable to CBAH and Altus
Power or any person acting on their behalf are expressly qualified
in their entirety by the cautionary statements above.
No Offer or Solicitation
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities.
About CBRE Acquisition Holdings, Inc.
CBRE Acquisition Holdings, Inc. ("CBAH") is a blank-check
company formed solely for the purpose of effecting a merger,
capital stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination with one or more
businesses. CBAH is sponsored by CBRE Acquisition Sponsor, LLC,
which is a subsidiary of CBRE Group, Inc.
About Altus Power
Altus Power, based in Stamford,
Connecticut, is creating a clean electrification ecosystem,
serving its commercial, public sector and community solar customers
with locally sited solar generation, energy storage, and
EV-charging stations across the U.S. Since its founding in 2009,
Altus Power has developed or acquired over 350 megawatts from
Vermont to Hawaii. Visit altuspower.com to learn
more.
Contacts:
CBRE Acquisition Holdings Contacts
Cash Smith
CBRE Acquisition Holdings, Inc.
Cash.Smith@cbre.com
Steven Iaco
CBRE Corporate Communications
Steven.Iaco@cbre.com
Altus Power Contacts
For Media:
Cory Ziskind
ICR, Inc.
AltusPowerPR@icrinc.com
For Investors:
Caldwell Bailey
ICR, Inc.
AltusPowerIR@icrinc.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/altus-power-inc-a-market-leading-clean-electrification-company-reports-third-quarter-2021-financial-and-operational-results-301425245.html
SOURCE Altus Power, Inc.