ANNAPOLIS, Md., Nov. 4, 2015 /PRNewswire/ -- Hannon
Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong," "we," "our" or the "Company;"
NYSE: HASI), 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
September 30, 2015, of $8.5 million or $0.26 per share, an increase of 18% over the
$0.22 per share in the same quarter
last year. For the nine months ended September 30, 2015, Core Earnings were
$24.0 million or $0.79 per share, as compared to $13.2 million or $0.64 per share in the same period last year.
![Hannon Armstrong Sustainable Infrastructure Logo Hannon Armstrong Sustainable Infrastructure Logo](http://photos.prnewswire.com/prnvar/20130808/PH61447LOGO)
On a GAAP basis, net income for the quarter ended September 30, 2015, was $2.1 million or $0.06 per share as compared to $2.6 million or $0.11 per share in the same quarter in 2014. For
the nine months ended September 30,
2015, GAAP net income was $5.7
million or $0.16 per share as
compared to $8.1 million or
$0.40 per share in the same period
last year. The decline in GAAP earnings was, in part, a
result of GAAP treatment of the wind equity investments. A
reconciliation of our Core Earnings to GAAP net income is included
in this press release.
"With our recent equity raise and the closing of our asset
backed securitization – we remain optimistic
about our ability to execute on the robust pipeline of
opportunities in our target markets," said Jeffrey Eckel, President & CEO. "As
spreads continue to widen in many
of today's clean energy markets, the stage is set
for us to continue to grow our balance sheet and dividend, from
assets that generate attractive risk-adjusted returns, and which
reduce greenhouse gas emissions."
Highlights
- Year to date completed approximately $595 million of transactions as compared to
approximately $503 million in the
same period last year;
- Completed $101 million, 19 year
term, 4.28% Sustainable Yield Bonds™ offering;
- Raised $99 million in additional
capital through a follow-on equity offering in October 2015;
- Achieved approximately 2 to 1 leverage and 43% of our debt is
fixed; and
- Diversified pipeline of investment opportunities remains in
excess of $2.5 billion.
Portfolio
Our Portfolio totaled $1.1 billion
at September 30, 2015 with
approximately 29% energy efficiency, 67% renewable energy (wind and
solar) and 4% other sustainable infrastructure investments. The
following is an analysis of our Portfolio by type of obligor and
credit quality as of September 30,
2015, with 99% of the Debt and Real Estate portion of the
Portfolio rated investment grade as shown below:
|
Investment
Grade
|
|
|
|
|
|
|
|
|
|
Government (1)
|
|
Commercial
Investment
Grade(2)
|
|
Commercial
Non-
Investment Grade (3)
|
|
Subtotal, Debt
and Real Estate
|
|
Equity Method
Investments(4)
|
|
Total
|
|
(dollars in
millions)
|
Financing
receivables
|
$ 328
|
|
$ 408
|
|
$
-
|
|
$ 736
|
|
$
—
|
|
$ 736
|
Financing receivables
held-for-sale
|
41
|
|
—
|
|
—
|
|
41
|
|
—
|
|
41
|
Investments
|
—
|
|
15
|
|
13
|
|
28
|
|
—
|
|
28
|
Real
estate(5)
|
—
|
|
155
|
|
—
|
|
155
|
|
—
|
|
155
|
Equity method
investments
|
—
|
|
—
|
|
—
|
|
—
|
|
165
|
|
165
|
Total
|
$
369
|
|
$
578
|
|
$
13
|
|
$
960
|
|
$ 165
|
|
$ 1,125
|
% of Debt and Real
Estate Portfolio
|
39%
|
|
60%
|
|
1%
|
|
100%
|
|
N/A
|
|
N/A
|
Average Remaining
Balance(6)
|
$
11
|
|
$
10
|
|
$
13
|
|
$
10
|
|
$
15
|
|
$ 11
|
(1)
|
Transactions where
the ultimate obligor is the U.S. Federal Government or state or
local governments where the obligors are rated investment grade
(either by an independent rating agency or based upon our internal
credit analysis). This amount includes $269 million of U.S. Federal
Government transactions and $100 million of transactions where the
ultimate obligors are state or local governments. Transactions may
have guaranties of energy savings from third party service
providers, the majority of which are entities rated investment
grade by an independent rating agency.
|
(2)
|
Transactions where
the projects or the ultimate obligors are commercial entities,
including institutions such as hospitals or universities, that
have been rated investment grade (either by an independent rating
agency or based on our internal credit analysis). Of this
total, $51 million of the transactions have been rated investment
grade by an independent rating agency. Commercial investment
grade financing receivables includes $164 million of internally
rated residential solar loans where the cash flows which support
our financing receivables are subordinated to the tax equity
investors (whose return is largely derived from the renewable
energy tax incentives) and for which we rely on certain tax related
indemnities of the publicly traded residential solar
provider.
|
(3)
|
Transactions where
the projects or the ultimate obligors are commercial entities,
including institutions such as hospitals or universities, that
have ratings below investment grade (either by an independent
rating agency or using our internal credit analysis).
|
(4)
|
Consists of minority
ownership interest in operating wind projects in which we earn a
preferred return.
|
(5)
|
Includes the real
estate and the lease intangible assets through which we receive
scheduled lease payments, typically under long-term triple net
lease agreements.
|
(6)
|
Excludes 78
transactions each with outstanding balances that are less than $1
million and that in the aggregate total $25 million.
|
Third Quarter Core Earnings
Hannon Armstrong reported
third-quarter 2015 Core Earnings of $8.5
million or $0.26 per share, as
compared with Core Earnings of $5.0
million, or $0.22 per share,
in the three months ended September 30,
2014. The increase in Core Earnings was largely due to an
increase in Core Net Investment Revenue, which increased to
$9.6 million from $4.4 million in the three months ended
September 30, 2014, due to
approximately an 85% growth in the Portfolio from September 30, 2014, to September 30, 2015. This $5.2 million increase in Core Net Investment
Revenue was partially offset by a decrease in Other Investment
Revenue of $0.9 million as well as a
$0.7 million increase in Core Other
Expenses, net.
As of September 30, 2015, we held
43% of our debt at fixed rates as shown in the chart below:
|
September 30,
2015
|
|
% of
Total
|
|
(dollars in
millions)
|
|
|
Floating-Rate Credit
Facility
|
$ 378
|
|
57%
|
Fixed-Rate HASI
Asset-backed Debt
|
288
|
|
43%
|
Total
Debt(1)
|
$ 666
|
|
100%
|
|
|
|
(1) Excludes
match-funded other nonrecourse debt of $105 million where the debt
is match-funded with corresponding assets and we have no interest
rate risk.
|
|
|
|
|
|
As of September 30, 2015,
leverage, as measured by debt-to-equity, was 2 to 1. This
calculation excludes securitizations that are not consolidated on
our balance sheet (where the collateral is typically borrowings
with U.S. government obligors) and our on balance sheet match
funded nonrecourse debt.
"We now have over 100 individual transactions in our diversified
Portfolio," said Chief Financial Officer Brendan Herron. "We continue to focus our
origination efforts on energy efficiency, wind and solar
transactions with both commercial and governmental customers to
create additional diversity for our Portfolio."
Conference Call and Webcast Information
Hannon Armstrong will host an
investor conference call today at 5
p.m. ET. Interested parties are invited to listen to the
conference call by dialing 1-877-548-7911, or for international
callers, 1-719-325-4752. A replay will be available two hours after
the call and can be accessed by dialing 1-877-870-5176, or for
international callers, 1-858-384-5517. The passcode for the live
call and the replay is 405127. The replay will be available until
November 11, 2015.
A webcast of the conference call will also be available through
the Investor Relations section of our website,
at www.hannonarmstrong.com.
A copy of this press release is also available on our
website.
About Hannon Armstrong
Hannon Armstrong (NYSE: HASI)
provides debt and equity financing to the energy efficiency and
renewable energy markets. We focus on providing preferred or senior
level capital to established sponsors and high credit quality
obligors for assets that generate long-term, recurring and
predictable cash flows. We are based in Annapolis, Maryland, and we elected and
qualified to be taxed as a real estate investment trust ("REIT")
for federal income-tax purposes, beginning with our taxable year
ended December 31, 2013.
Forward-Looking Statements
Some of the information contained in this press release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. When used in this
press release, the words such as "believe," "expect," "anticipate,"
"estimate," "plan," "continue," "intend," "should," "may,"
"target," or similar expressions, are intended to identify such
forward-looking statements. Forward-looking statements are subject
to significant risks and uncertainties. Investors are cautioned
against placing undue reliance on such statements. Actual results
may differ materially from those set forth in the forward-looking
statements. Factors that could cause actual results to differ
materially from those described in the forward-looking statements
include those discussed under the caption "Risk Factors" included
in our most recent Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission, as well as in other reports
that we file with the SEC. Those factors include:
- our equity method investments in wind
projects;
- our acquisition and integration of American Wind Capital
Company, LLC as well as subsequent real estate
acquisitions;
- our expectations related to payments under our $13 million senior secured debt securities in an
operating wind project;
- the state of government legislation, regulation and policies
that support energy efficiency, renewable energy and
sustainable infrastructure projects and that enhance the economic
feasibility of energy efficiency, renewable energy and sustainable
infrastructure projects and the general market demands for such
projects;
- market trends in our industry, energy markets, commodity
prices, interest rates, the debt and lending markets or the general
economy;
- our business and investment strategy;
- our ability to complete potential new financing
opportunities in our pipeline;
- our relationships with originators, investors, market
intermediaries and professional advisers;
- competition from other providers of financing;
- our or any other companies' projected operating
results;
- actions and initiatives of the U.S. federal, state and local
governments and changes to U.S. federal, state and local government
policies and the execution and impact of these actions, initiatives
and policies;
- the state of the U.S. economy generally or in specific
geographic regions, states or municipalities; economic trends and
economic recoveries;
- our ability to obtain and maintain financing arrangements on
favorable terms, including securitizations;
- general volatility of the securities markets in which we
participate;
- changes in the value of our assets, our portfolio of assets
and our investment and underwriting process
- interest rate and maturity mismatches between our assets and
any borrowings used to fund such assets;
- changes in interest rates and the market value of our
assets;
- changes in commodity prices;
- effects of hedging instruments on our assets;
- rates of default or decreased recovery rates on our
assets;
- the degree to which our hedging strategies may or may not
protect us from interest rate volatility;
- impact of and changes in governmental regulations, tax law
and rates, accounting guidance and similar matters;
- our ability to maintain our qualification, as a REIT for
U.S. federal income-tax purposes;
- our ability to maintain our exception from registration
under the Investment Company Act of 1940;
- availability of opportunities to originate energy
efficiency, renewable energy and sustainable
infrastructure projects;
- availability of qualified personnel;
- estimates relating to our ability to make distributions to
our stockholders in the future; and
- our understanding of our competition.
Forward-looking statements are based on beliefs, assumptions
and expectations as of the date of this press release. We disclaim
any obligation to publicly release the results of any revisions to
these forward-looking statements reflecting new estimates, events
or circumstances after the date of this earnings release.
The risks included here are not exhaustive. Additional
factors could adversely affect our business and financial
performance. Moreover, we operate in a very competitive and rapidly
changing environment. New risk factors emerge from time to time and
it is not possible for management to predict all such risk factors,
nor can we assess the impact of all such risk factors on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual
results.
Investor Relations
410-571-6189
investors@hannonarmstrong.com
EXPLANATORY NOTES
Non-GAAP Financial Measures
Core Earnings
Core Net Investment Revenue, Core Total Revenue, Core Other
Expenses, net and Core Earnings ("Core Financial Metrics") are
non-GAAP financial measures. Core Net Investment Revenue reflects
the wind equity investments adjusted to an effective interest
method and the add back of non-cash real estate intangible
amortization and the provision for credit losses, if any.
Our equity method investments in the wind projects are
structured using typical wind partnership "flip" structures where
we, along with other institutional investors, if any, receive a
pre-negotiated preferred return consisting of priority
distributions from the project cash flows along with tax
attributes. Once this preferred return is achieved, the
partnership flips and the wind energy company, which operates the
project, receives the majority of the cash flows through its equity
interests with the institutional investors retaining an ongoing
residual interest. Given this structure, we negotiated our
purchase price of our wind investments based on our assessment of
the expected cash flows from each investment discounted back to net
present value based on a discount rate that represented an expected
yield on the investment. This is similar to how we value the
expected cash flows in financing receivables. Under U.S. GAAP, we
are required to account for these investments utilizing the
hypothetical liquidation at book value method ("HLBV"), in which we
recognize income or loss based on the change in the amount each
partner would receive if the assets were liquidated at book value,
in this case, at the end of the immediately preceding quarter after
adjusting for any distributions or contributions made during such
quarter. As HLBV incorporates non-cash items, such as
depreciation, and because we are entitled to receive a preferred
return of cash flows on our investments independent of how profits
and losses are allocated, the HLBV allocation does not, in our
opinion, reflect the economics of our investments. As a result, and
in an attempt to treat these investments in a manner similar to our
other investments and our initial valuation, in calculating our
Core Net Investment Revenue for the above periods, we adjusted the
income we receive from these investments as if we were recognizing
income or loss based on an effective interest methodology.
Generally, under this methodology income is recognized over the
life of the asset using a constant effective yield. The
initial constant effective yield we selected is equal to the
discount rates we used in making our investment decisions. On at
least a quarterly basis, we will review and, if appropriate, adjust
the discount rates and the income or loss we receive from these
investments for purposes of calculating our Core Net Investment
Revenue in future periods, as necessary, to reflect changes in both
actual cash flows received and our estimates of the future cash
flows from the projects. Our allocation of profits and losses
is projected to change in 2019, which is expected to result in an
increase of the amount of HLBV profits or losses allocated to us.
In June 2015, JPMorgan Chase
& Co. ("JPMorgan"), our joint venture partner and one of the
project holding companies entered into an agreement regarding the
treatment of certain tax matters that had the impact of reducing
our expected future cash flows from that holding company. As
a result of this agreement, JPMorgan paid us approximately
$3 million, which effectively reduced
our investment in that entity.
In accordance with the methodology described above, we have
calculated a new constant effective yield based upon the reduced
investment amount and the reduction in expected future cash flows.
We have used this new effective yield, which is not materially
different from our initial constant effective yield, in the quarter
ended September 30, 2015.
We have borrowed $115 million on a
nonrecourse basis using our equity method investment in one of our
joint ventures as collateral and used the $3
million payment from JPMorgan to repay a portion of this
loan. Included in our U.S. GAAP investment interest
expense for the nine months ended September
30, 2015, was approximately $5
million of interest expense related to this nonrecourse
loan. For the nine months ended September 30, 2015, we collected cash
distributions from all of our wind investments of approximately
$21 million (in addition to the
$3 million payment), of which
$9.5 million represents our Core
Earnings adjustment for these investments based upon the effective
yield methodology discussed above.
Core Other Expenses, net reflects the add back of non-cash
equity-based compensation, amortization of intangible assets, GAAP
HLBV income or loss on our equity method investments, and business
acquisition costs, if any. Core Earnings represent earnings
utilizing the adjustments for Core Net Investment Revenue and Core
Other Expenses, net and adjusting for any non-cash taxes and the
minority interest. Our Core Financial Metrics are also adjusted to
exclude one-time events pursuant to changes in GAAP and certain
other non-cash charges, if any, as approved by a majority of our
independent directors.
We believe that the Core Financial Metrics provide additional
measures of our core operating performance by eliminating the
impact of certain non-cash income and expenses and facilitating a
comparison of our financial results to those of other comparable
REITs with fewer or no non-cash charges and a comparison of our
operating results from period to period. Our management uses Core
Financial Metrics in this way. We believe that our investors also
use our Core Financial Metrics or a comparable supplemental
performance measure to evaluate and compare our performance to our
peers, and as such, we believe that the disclosure of our Core
Financial Metrics is useful to our investors.
Core Earnings does not represent cash generated from operating
activities in accordance with GAAP and should not be considered as
an alternative to net income (determined in accordance with GAAP),
or an indication of our cash flows from operating activities
(determined in accordance with GAAP), a measure of our liquidity or
an indication of funds available to fund our cash needs, including
our ability to make cash distributions. In addition, our
methodology for calculating our Core Financial Metrics may differ
from the methodologies employed by other REITs to calculate the
same or similar supplemental performance measures, and accordingly,
our reported Core Earnings may not be comparable to the Core
Earnings reported by other REITs.
The table below provides a reconciliation of the GAAP Net
Investment Revenue, net to Core Net Investment Revenue:
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended
|
|
For the Nine
Months
Ended
|
|
September
30, 2015
|
|
September 30,
2014
|
|
September
30, 2015
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
Net Investment
Revenue (GAAP)
|
$5,727
|
|
$4,269
|
|
$15,428
|
|
$9,744
|
Adjustments:
|
|
|
|
|
|
|
|
Real estate
intangibles (1)
|
476
|
|
111
|
|
788
|
|
148
|
Equity affiliate
adjustment (2)
|
3,360
|
|
-
|
|
9,382
|
|
|
Core Net Investment
Revenue Adjustments
|
3,836
|
|
111
|
|
10,170
|
|
148
|
Core Net
Investment Revenue (3)
|
$9,563
|
|
$4,380
|
|
$25,598
|
|
$9,892
|
|
|
|
|
|
|
|
|
(1) Reflects add
back of non-cash amortization of lease
intangibles.
|
(2) See discussion
of Core Earnings above.
|
(3) Core Net
Investment Revenue plus GAAP Other Investment Revenue would equal
Core Total Revenue, net of investment interest
expense.
|
The table below provides a reconciliation of the GAAP Other
Expenses, net to Core Other Expenses, net:
|
For the Three
Months
Ended
|
|
For the Nine
Months
Ended
|
|
|
September
30, 2015
|
|
September 30,
2014
|
|
September
30, 2015
|
|
September 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
Other Expenses, net
(GAAP)
|
$6,188
|
|
$4,604
|
|
$17,693
|
|
$12,957
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Non-cash equity-based
compensation charge (1)
|
(2,701)
|
|
(1,657)
|
|
(7,728)
|
|
(3,627)
|
|
Equity affiliate
adjustment(2)
|
187
|
|
-
|
|
(162)
|
|
-
|
|
Amortization of
intangibles (3)
|
(51)
|
|
(51)
|
|
(151)
|
|
(152)
|
|
Business combination
acquisition costs(4)
|
-
|
|
-
|
|
-
|
|
(1,104)
|
|
Core Other Expenses,
Net Adjustments
|
(2,565)
|
|
(1,708)
|
|
(8,041)
|
|
(4,883)
|
|
Core Other
Expenses, net
|
$3,623
|
|
$2,896
|
|
$9,652
|
|
$8,074
|
|
|
|
(1)
Reflects add back of non-cash
amortization of stock based compensation. Outstanding
shares
related to stock based compensation are included in Core Earnings
per share calculation.
|
(2)
See discussion of Core
Earnings above.
|
(3)
Adds back non-cash amortization of pre
IPO intangibles.
|
(4)
Acquisition related costs, such as legal
fees or third party transaction based fees associated with
transactions that are
accounted for as a business combination.
|
We calculated our Core Earnings and provided a reconciliation of
our net income to Core Earnings in the table below:
|
For the Three
Months
Ended
|
|
For the Three
Months
Ended
|
|
|
September 30,
2015
|
|
Per
Share
|
|
September 30,
2014
|
|
Per
Share
|
|
|
|
(dollars in
thousands, except per share data)
|
|
Net income
attributable to controlling shareholders
|
$2,119
|
|
$0.06
|
|
$2,564
|
|
$0.11
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Core Net
Investment Revenue Adjustments
|
3,836
|
|
|
|
111
|
|
|
|
|
Core Other
Expenses, net Adjustments
|
2,565
|
|
|
|
1,708
|
|
|
|
|
Net income
attributable to minority interest
|
23
|
|
|
|
38
|
|
|
|
|
Non-cash
provision (benefit) for taxes
|
0
|
|
|
|
599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
Earnings(1)
|
$8,543
|
|
$0.26
|
|
$5,020
|
|
$0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Core Earnings
per share for the three months ended September 30, 2015 and
September 30, 2014, are based on 32,787,514
shares and 23,079,912 shares outstanding, respectively, which
represent the weighted average number of fully diluted shares
outstanding during such period and includes unvested restricted
stock and the shares issuable upon redemption of limited
partnership interests in the Operating Partnership as the income
attributable to the minority interest is also
included.
|
|
For the Nine
Months
Ended
|
|
For the Nine
Months
Ended
|
|
|
September 30,
2015
|
|
Per
Share
|
|
September 30,
2014
|
|
Per
Share
|
|
|
|
(dollars in
thousands, except per share data)
|
|
Net income
attributable to controlling shareholders
|
$5,712
|
|
$0.16
|
|
$8,145
|
|
$0.40
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Core Net
Investment Revenue Adjustments
|
10,170
|
|
|
|
148
|
|
|
|
|
Core Other
Expenses, net Adjustments
|
8,041
|
|
|
|
4,883
|
|
|
|
|
Net income
attributable to minority interest
|
62
|
|
|
|
145
|
|
|
|
|
Non-cash
provision (benefit) for taxes
|
47
|
|
|
|
(170)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
Earnings(1)
|
$24,032
|
|
$0.79
|
|
$13,151
|
|
$0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Core Earnings per share for the nine
months ended September 30, 2015 and September 30, 2014, are based
on 30,585,319 shares
and 20,418,079 shares outstanding, respectively, which represent
the weighted average number of fully diluted shares outstanding
during such period and includes unvested restricted stock and the
shares issuable upon redemption of limited partnership
interests
in the Operating Partnership as the income attributable to the
minority interest is also included.
|
HANNON ARMSTRONG
SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
|
|
|
For the Three
Months Ended September 30,
|
For the Nine
Months Ended September 30,
|
|
|
2015
|
2014
|
2015
|
2014
|
|
Net Investment
Revenue:
|
|
|
|
|
|
Interest Income,
Financing receivables
|
$
10,064
|
$
6,234
|
$
26,609
|
$
16,081
|
|
Interest Income,
Investments
|
364
|
822
|
1,118
|
3,254
|
|
Rental
Income
|
1,988
|
1,187
|
6,641
|
1,597
|
|
Investment
Revenue
|
12,416
|
8,243
|
34,368
|
20,932
|
|
Investment interest
expense
|
(6,689)
|
(3,974)
|
(18,940)
|
(11,188)
|
|
Net Investment
Revenue
|
5,727
|
4,269
|
15,428
|
9,744
|
|
Provision for credit
losses
|
-
|
-
|
-
|
-
|
|
Net Investment
Revenue, net of provision for credit losses
|
5,727
|
4,269
|
15,428
|
9,744
|
|
Other Investment
Revenue:
|
|
|
|
|
|
Gain on sale of
receivables and investments
|
2,529
|
3,361
|
6,956
|
9,608
|
|
Fee income
|
98
|
183
|
1,160
|
1,732
|
|
Other Investment
Revenue
|
2,627
|
3,544
|
8,116
|
11,340
|
|
Total Revenue, net
of investment interest expense and provision
|
8,354
|
7,813
|
23,544
|
21,084
|
|
Compensation and
benefits
|
(4,341)
|
(3,111)
|
(12,171)
|
(7,648)
|
|
General and
administrative
|
(1,706)
|
(1,433)
|
(4,772)
|
(4,031)
|
|
Acquisition
costs
|
-
|
-
|
-
|
(1,104)
|
|
Other, net
|
(328)
|
(60)
|
(588)
|
(174)
|
|
Gain (loss) from
equity method investments in affiliates
|
187
|
-
|
(162)
|
-
|
|
Other Expenses,
net
|
(6,188)
|
(4,604)
|
(17,693)
|
(12,957)
|
|
Net income before
income taxes
|
2,166
|
3,209
|
5,851
|
8,127
|
|
Income tax (expense)
benefit
|
(24)
|
(607)
|
(77)
|
163
|
|
Net
Income
|
$
2,142
|
$
2,602
|
$
5,774
|
$
8,290
|
|
Net income
attributable to non-controlling interest holders
|
23
|
38
|
62
|
145
|
|
Net Income
Attributable to Controlling Shareholders
|
$
2,119
|
$
2,564
|
$
5,712
|
$
8,145
|
|
Basic earnings per
common share
|
$
0.06
|
$
0.11
|
$
0.16
|
$
0.40
|
|
Diluted earnings per
common share
|
$
0.06
|
$
0.11
|
$
0.16
|
$
0.40
|
|
Weighted average
common shares outstanding—basic
|
31,221,982
|
21,774,411
|
29,046,742
|
19,235,121
|
|
Weighted average
common shares outstanding—diluted
|
31,221,982
|
21,774,411
|
29,046,742
|
19,235,121
|
|
HANNON ARMSTRONG
SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2015 and DECEMBER 31, 2014
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
|
|
|
September 30,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
Financing
receivables
|
$
736,250
|
|
$ 552,706
|
Financing receivables
held-for-sale
|
41,206
|
|
62,275
|
Investments
available-for-sale
|
28,186
|
|
27,273
|
Real estate
|
129,344
|
|
90,907
|
Real estate related
intangible assets
|
25,840
|
|
23,058
|
Equity method
investments in affiliates
|
165,280
|
|
143,903
|
Cash and cash
equivalents
|
30,680
|
|
58,199
|
Restricted cash and
cash equivalents
|
14,371
|
|
11,943
|
Other
assets
|
36,408
|
|
39,993
|
Total
Assets
|
$
1,207,565
|
|
$ 1,010,257
|
Liabilities and
Equity
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable,
accrued expenses and other
|
$
16,592
|
|
$ 11,408
|
Deferred funding
obligations
|
78,436
|
|
88,288
|
Credit
facility
|
378,096
|
|
315,748
|
Asset-backed
nonrecourse notes (secured by assets
of $360 million and $248 million, respectively)
|
288,300
|
|
208,246
|
Other nonrecourse debt
(secured by financing receivables of
$101 million and $108 million, respectively)
|
104,761
|
|
112,525
|
Total
Liabilities
|
866,185
|
|
736,215
|
|
|
|
|
Equity:
|
|
|
|
Preferred stock, par
value $0.01 per share, 50,000,000 shares
authorized, no shares issued and outstanding
|
—
|
|
—
|
Common stock, par
value $0.01 per share, 450,000,000 shares
authorized, 31,221,982 and 26,377,111 shares issued and
outstanding, respectively
|
312
|
|
264
|
Additional paid in
capital
|
381,424
|
|
293,635
|
Retained
deficit
|
(43,467)
|
|
(25,006)
|
Accumulated other
comprehensive (loss) income
|
(862)
|
|
406
|
Non-controlling
interest
|
3,973
|
|
4,743
|
Total
Equity
|
341,380
|
|
274,042
|
Total Liabilities
and Equity
|
$
1,207,565
|
|
$ 1,010,257
|
Number of shares of common stock outstanding: 38,269,566 shares
of common stock, par value $0.01 per
share, were outstanding as of November 4,
2015 (which includes 1,297,584 shares of unvested restricted
common stock).
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SOURCE Hannon Armstrong Sustainable Infrastructure Capital,
Inc.