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8point3 Energy Partners Reports Second Quarter 2016 Results
06/29/16

SAN JOSE, Calif., June 29, 2016 /PRNewswire/ -- 8point3 Energy Partners LP (NASDAQ: CAFD) today announced financial results for its second fiscal quarter ended May 31, 2016.

  • Partnership exceeds Q2 2016 revenue, net income, adjusted EBITDA and cash available for distribution ("CAFD") guidance
  • Declared Q2 2016 distribution of $0.2325 per share, an increase of 3.5 percent over the Q1 2016 distribution
  • Forecasts Q3 2016 distribution of $0.2406per share, an increase of 3.5 percent compared to the Q2 2016 distribution
  • Right of First Offer (ROFO) portfolio adjusted to support the partnership's targeted long-term growth

For the second quarter of fiscal 2016, 8point3 Energy Partners reported revenue of $13.5 million, net loss of $0.2 million, adjusted EBITDA of $17.4 million and CAFD of $10.3 million.

"Our strong second quarter results highlight the stability and strong performance of our 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 May, our portfolio consisted of interests in 525 megawatts (MW) of solar generating assets and we remain confident that with this asset portfolio, we will be able to achieve our targeted distribution growth rate of 12 to 15 percent through 2017.  Additionally, with the latest adjustment to the ROFO portfolio, we have reduced our reliance on the capital markets while maintaining our long-term distribution growth targets."

With the increased opportunity to potentially acquire solar power plant projects beyond 2016 due to the extension of the federal Investment Tax Credit and with the desire to finance acquisitions on favorable terms while simultaneously maintaining a conservative capital structure, the partnership has agreed to make certain further adjustments to its ROFO portfolio. These most recent adjustments include waiving the partnership's right of first offer on First Solar's 250 MW Moapa project and adding to the ROFO portfolio First Solar's 280 MW California Flats project, which has an expected commercial operation date in 2018.  The partnership believes that these additional adjustments better align the ROFO portfolio with its targeted long-term growth plan.   

The partnership previously announced that its Board of Directors has declared a second quarter distribution for its Class A shares of $0.2325 per share. The second quarter distribution will be paid on July 15, 2016 to shareholders of record as of July 5, 2016.

As of May 31, 2016, 8point3 Energy Partners had total liquidity of more than $120 million comprised of $20 million in cash on its balance sheet and $101 million available on its five-year revolving credit facility.  The company's liquidity position excludes up to $250 million in an accordion feature under its existing credit facility.    

"We were pleased with our second quarter performance as we exceeded our financial targets in addition to raising our quarterly shareholder distribution by 3.5 percent," said Mark Widmar, 8point3 Energy Partners chief financial officer.  "Our balance sheet remains strong and we have sufficient liquidity to acquire additional projects in the second half of the year if they meet our economic requirements."

Guidance 
The partnership's third quarter 2016 guidance is as follows:  revenue of $23.0 million to $24.0 million, net income of $10.0 million to $11.0 million, adjusted EBITDA of $29.0 million to $30.0 million, CAFD of $20.0 million to $21.0 million and a distribution per share of $0.2406, a forecasted increase of 3.5 percent compared to the Q2 2016 distribution. 

The partnership's 2016 guidance is as follows:  revenue of $57.1 million to $59.1 million, net income of $1.8 million to $3.8 million, adjusted EBITDA of $68.8 million to $70.8 million, CAFD of $71.0 million to $73.5 million.   The partnership's fiscal year CAFD guidance includes approximately $9.5 million in network upgrade reimbursements currently expected to be received in the fourth quarter of 2016. 

The partnership also reiterated that it expects to achieve its 12 to 15 percent distribution growth rate for 2016.

About 8point3 Energy Partners
8point3 Energy Partners LP (NASDAQ: CAFD) is a growth-oriented limited partnership formed by First Solar, Inc. and SunPower Corporation to own, operate and acquire solar energy generation projects. 8point3 Energy Partners' primary objective is to generate predictable cash distributions that grow at a sustainable rate. The partnership owns interests in projects in the United States that generate long-term contracted cash flows and serve utility, commercial and residential customers.  For more information about 8point3 Energy Partners, please visit: www.8point3energypartners.com.

For 8point3 Energy Partners Investors 
This press release includes various "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. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. You can identify our forward-looking statements by words such as "anticipate", "believe", "estimate", "expect", "forecast", "goals", "objectives", "outlook", "intend", "plan", "predict", "project", "risks", "schedule", "seek", "target", "could", "may", "will", "should" or "would" or other similar expressions that convey the uncertainty of future events or outcomes. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, these statements are accompanied by cautionary language identifying important factors, though not necessarily all such factors, which could cause future outcomes to differ materially from those set forth in forward-looking statements. In particular, expressed or implied statements concerning the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the partnership and its subsidiaries, including guidance regarding the partnership's revenue, adjusted EBITDA, cash available for distribution and distributions, other future actions, conditions or events such as the projected commercial operation dates of projects, future operating results or the ability to generate sales, income or cash flow or to make distributions are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Forward-looking statements speak only as of the date of this press release, June 29, 2016, and we disclaim any obligation to update such statements for any reason, except as required by law. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this paragraph. Many of the factors that will determine these results are beyond our ability to control or predict. These factors include the risk factors described under "Risk Factors" in the partnership's Transition Report on Form 10-K for the transition period from December 28, 2014 to November 30, 2015, filed with the Securities Exchange Commission on January 28, 2016. If any of those risks occur, it could cause our actual results to differ materially from those contained in any forward-looking statement. Because of these risks and uncertainties, you should not place undue reliance on any forward-looking statement.

Non-GAAP Financial Information 
This earnings release includes certain financial measures that are not defined under U.S. generally accepted accounting principles (GAAP), including Adjusted EBITDA and cash available for distribution. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. We reconcile these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP in the tables that accompany this release. In the introduction to such reconciliation tables that accompany this release, we disclose the reasons why we believe our use of the non-GAAP financial measures in this release provides useful information. Please read "Non-GAAP Financial Measures" below for further details on our use of non-GAAP financial measures. 

 

8point3 Energy Partners LP
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)










May 31,



November 30,




2016



2015


Assets









Current assets:









Cash and cash equivalents


$

19,995



$

56,781


Accounts receivable and short-term financing receivables, net



8,151




4,289


Prepaid and other current assets1



11,485




8,033


Total current assets



39,631




69,103


Property and equipment, net



680,067




486,942


Long-term financing receivables, net



81,724




83,376


Investments in unconsolidated affiliates



348,588




352,070


Other long-term assets



25,155




26,142


Total assets


$

1,175,165



$

1,017,633


Liabilities and Equity









Current liabilities:









Accounts payable and other current liabilities1


$

8,209



$

2,612


Short-term debt and financing obligations



1,964




1,964


Deferred revenue, current portion



512




489


Total current liabilities



10,685




5,065


Long-term debt and financing obligations



362,503




297,206


Deferred revenue, net of current portion



655




746


Other long-term liabilities



34,251




22,483


Total liabilities



408,094




325,500


Redeemable noncontrolling interests



22,549




89,747


Equity:









Class A shares, 20,014,658 and 20,007,281 issued and outstanding as of May 31, 2016 and November 30, 2015, respectively



392,860




392,748


Class B shares, 51,000,000 issued and outstanding as of May 31, 2016 and November 30, 2015







Accumulated earnings



22,075




15,580


Total shareholders' equity attributable to 8point3 Energy Partners LP



414,935




408,328


Noncontrolling interests



329,587




194,058


Total equity



744,522




602,386


Total liabilities and equity


$

1,175,165



$

1,017,633


1       

The Partnership has related-party balances for transactions made with the Sponsors. Related-party balances recorded within "Prepaid and other current assets" in the unaudited condensed consolidated balance sheets were $1.0 million and $0.9 million as of May 31, 2016 and November 30, 2015, respectively. Related-party balances recorded within "Accounts payable and other current liabilities" in the unaudited condensed consolidated balance sheets were $3.6 million and $0.2 million as of May 31, 2016 and November 30, 2015, respectively. 

 


8point3 Energy Partners LP
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)










Three Months Ended



Six Months Ended




May 31,



June 28,



May 31,



June 28,




2016



2015



2016



2015


Revenues:

















Operating revenues1


$

13,517



$

2,179



$

20,619



$

4,313


Total revenues



13,517




2,179




20,619




4,313


Operating costs and expenses1:

















Cost of operations



1,759




252




3,025




2,310


Cost of operations—SunPower, prior to IPO






234







468


Selling, general and administrative



1,656




4,519




3,292




7,798


Depreciation, amortization and accretion



5,388




748




10,014




1,478


Acquisition-related transaction costs



829







1,662





Total operating costs and expenses



9,632




5,753




17,993




12,054


Operating income (loss)



3,885




(3,574)




2,626




(7,741)


Other expense (income):

















Interest expense



3,051




480




5,924




1,526


Interest income



(328)




(1,064)




(613)




(1,064)


Other expense (income)



(334)




7,977




(260)




11,925


Total other expense, net



2,389




7,393




5,051




12,387


Income (loss) before income taxes



1,496




(10,967)




(2,425)




(20,128)


Income tax provision



(6,681)




(103)




(10,218)




(109)


Equity in earnings of unconsolidated investees



5,024




218




5,429




218


Net loss



(161)




(10,852)




(7,214)




(20,019)


Less: Predecessor loss prior to IPO on June 24, 2015






(10,928)







(20,095)


    Net income (loss) subsequent to IPO



(161)




76




(7,214)




76


Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests



(10,183)




(69)




(22,544)




(69)


Net income attributable to 8point3 Energy Partners LP Class A shares


$

10,022



$

145



$

15,330



$

145


Net income per Class A share:

















Basic


$

0.50



$

0.01



$

0.77



$

0.01


Diluted


$

0.50



$

0.01



$

0.77



$

0.01


Distributions per Class A share:


$

0.22



$



$

0.44



$


Weighted average number of Class A shares:

















Basic



20,011




20,000




20,009




20,000


Diluted



35,511




32,500




35,509




32,500



















1       

The Partnership has related-party activities for transactions made with the Sponsors. Related party transactions recorded within "Operating revenues" in the unaudited condensed consolidated statement of operations were $1.3 million and $2.6 million for the three and six months ended May 31, 2016, respectively, and $0.1 million for each of the three and six months ended June 28, 2015. Related party transactions recorded within "Operating costs and expenses" in the unaudited condensed consolidated statement of operations were $1.7 million and $3.1 million for the three and six months ended May 31, 2016, respectively, and $0.2 million and $0.5 million for the three and six months ended June 28, 2015, respectively.

 


8point3 Energy Partners LP
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)







Six Months Ended




May 31,



June 28,




2016



2015


Cash flows from operating activities:









Net loss


$

(7,214)



$

(20,019)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:









Depreciation, amortization and accretion



10,014




1,488


Loss on cash flow hedges






3,242


Unrealized gain on interest rate swap



(251)





Interest expense on financing obligation






1,193


Loss on termination of financing obligation






6,478


Reserve for rebates receivable






1,338


Cash distributions from unconsolidated investees



7,718





Equity in earnings of unconsolidated investees



(5,429)




(218)


Deferred income taxes



10,218




97


Share-based compensation



112





Amortization of debt issuance costs



306





Changes in allowance for doubtful accounts



166





Changes in operating assets and liabilities:









Accounts receivable and financing receivable, net



(2,432)




(332)


Cash grants receivable






146


Rebates receivable






(121)


Solar power systems to be leased under sales type leases






160


Prepaid and other current assets



(464)




(3,632)


Deferred revenue



(68)




(479)


Accounts payable and other current liabilities



951




1,326


Net cash provided by (used in) operating activities



13,627




(9,333)


Cash flows from investing activities:









Cash provided by (used in) purchases of property and equipment, net



1,143




(224,018)


Cash paid for acquisitions



(117,974)





Distributions from unconsolidated investees



1,193





Net cash used in investing activities



(115,638)




(224,018)


Cash flows from financing activities:









Proceeds from issuance of Class A shares, net of issuance costs






393,750


Proceeds from issuance of bank loans, net of issuance costs



64,991




461,192


Repayment of bank loans






(264,143)


Capital contributions from SunPower



9,973




337,793


Cash distribution to SunPower at IPO






(371,527)


Cash distribution to FirstSolar at IPO






(283,697)


Capital distribution to SunPower






(3,162)


Cash distribution to Class A members



(8,835)





Cash contributions from noncontrolling interests and redeemable noncontrolling interests - tax equity investors



372




1,039


Cash distributions to noncontrolling interests and redeemable noncontrolling interests - tax equity investors



(1,276)





Net cash provided by financing activities



65,225




271,245


Net increase (decrease) in cash and cash equivalents



(36,786)




37,894


Cash and cash equivalents, beginning of period



56,781





Cash and cash equivalents, end of period


$

19,995



$

37,894


Noncash transactions:









Assignment of financing receivables to a third-party financial institution


$



$

1,279


Property and equipment acquisitions funded by liabilities



3,435





ARO assumed through acquisition



1,528




2,130


Change in ARO assets and liabilities



(224)




4,570


Predecessor liabilities assumed by SunPower






48,588


Issuance by OpCo of OpCo common units, subordinated units and IDR for acquisition of interests in First Solar Project Entities






408,820


Settlement of related party payable by capital contribution from tax equity investor



46,837





Accrued distributions to noncontrolling interests and redeemable noncontrolling interests - tax equity investors



1,616





 

Non-GAAP Financial Measures

Our management uses a variety of financial metrics to analyze our performance. The key financial metrics we evaluate are Adjusted EBITDA and cash available for distribution.

Adjusted EBITDA.  We define Adjusted EBITDA as net income (loss) plus interest expense, net of interest income, income tax provision, depreciation, amortization and accretion, including our proportionate share of net interest expense, income taxes and depreciation, amortization and accretion from our unconsolidated affiliates that are accounted for under the equity method, and share-based compensation; and excluding the effect of certain other non-cash or non-recurring items that we do not consider to be indicative of our ongoing operating performance such as, but not limited to, mark to market adjustments to the fair value of derivatives related to our interest rate hedges and transaction costs incurred for our acquisitions of projects. Adjusted EBITDA is a non-U.S. GAAP financial measure. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The U.S. GAAP measure most directly comparable to Adjusted EBITDA is net income (loss). The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and borrowers' ability to service debt. In addition, Adjusted EBITDA is used by our management for internal planning purposes including certain aspects of our consolidated operating budget and capital expenditures. It is also used by investors to assess the ability of our assets to generate sufficient cash flows to make distributions to our Class A shareholders.

However, Adjusted EBITDA has limitations as an analytical tool because it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments, does not reflect changes in, or cash requirements for, working capital, does not reflect significant interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt or cash distributions on tax equity, does not reflect payments made or future requirements for income taxes, and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results of operations. Adjusted EBITDA is a non-U.S. GAAP measure and should not be considered an alternative to net income (loss) or any other performance or liquidity measure determined in accordance with U.S. GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of Adjusted EBITDA are not necessarily comparable to EBITDA as calculated by other companies. Investors should not rely on these measures as a substitute for any U.S. GAAP measure, including net income (loss).

Cash Available for Distribution.  We use cash available for distribution, which we define as Adjusted EBITDA less equity in earnings of unconsolidated affiliates, cash interest paid, cash income taxes paid, maintenance capital expenditures, cash distributions to noncontrolling interests and principal amortization of indebtedness plus cash distributions from unconsolidated affiliates, test electricity generation and cash proceeds from sales-type residential leases. Our cash flow is generated from distributions we receive from OpCo each quarter. OpCo's cash flow is generated primarily from distributions from the Project Entities. As a result, our ability to make distributions to our Class A shareholders depends primarily on the ability of the Project Entities to make cash distributions to OpCo and the ability of OpCo to make cash distributions to its unitholders.

We believe cash available for distribution is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make our minimum quarterly distribution. In addition, cash available for distribution is used by our management team for determining future acquisitions and managing our growth. The U.S. GAAP measure most directly comparable to cash available for distribution is net income (loss).

However, cash available for distribution has limitations as an analytical tool because it does not capture the level of capital expenditures necessary to maintain the operating performance of our projects, does not include changes in operating assets and liabilities and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations. Cash available for distribution is a non-U.S. GAAP measure and should not be considered an alternative to net income (loss) or any other performance or liquidity measure determined in accordance with U.S. GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of cash available for distribution are not necessarily comparable to cash available for distribution as calculated by other companies. Investors should not rely on these measures as a substitute for any U.S. GAAP measure, including net income (loss).

The following table presents a reconciliation of net loss to Adjusted EBITDA and cash available for distribution for the three months ended May 31, 2016, February 29, 2016 and June 28, 2015, respectively, and six months ended May 31, 2016 and June 28, 2015, respectively:

 


8point3 Energy Partners LP
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)
(Unaudited)










Three Months Ended



Six Months Ended




May 31,



February 29,



June 28,



May 31,



June 28,


(in thousands)


2016



2016



2015



2016



2015


Net loss


$

(161)



$

(7,053)



$

(10,852)



$

(7,214)



$

(20,019)


Add (Less):





















Interest expense, net of interest income



2,715




2,588




(583)




5,303




462


Income tax provision



6,681




3,537




103




10,218




109


Depreciation, amortization and accretion



5,388




4,626




748




10,014




1,478


Share-based compensation



56




56







112





Selling, general and administrative (1)









3,849







6,372


Loss on cash flow hedges related to Quinto interest rate swaps









2,206







5,448


Loss on termination of residential financing obligations









5,771







6,477


Acquisition-related transaction costs (2)



829




833







1,662





Unrealized (gain) loss on derivatives (3)



(325)




74







(251)





Add proportionate share from equity method investments (4)





















Interest expense, net of interest income



(53)




(42)




(15)




(95)




(15)


Depreciation, amortization and accretion



2,234




3,052




161




5,286




161


Adjusted EBITDA


$

17,364



$

7,671



$

1,388



$

25,035



$

473


Less:





















Equity in earnings of unconsolidated affiliates, net with (4) above (5)



(7,205)




(3,415)




(364)




(10,620)




(364)


Cash interest paid (6)



(3,110)




(2,788)







(5,898)





Cash distributions to non-controlling interests



(420)




(484)







(904)





Add:





















Cash distributions from unconsolidated affiliates (7)



2,633




6,424







9,057





State and local rebates (8)






299







299





Cash proceeds from sales-type residential leases (9)



630




641




794




1,271




1,492


Indemnity payment from SunPower (10)






9,973







9,973





Test electricity generation (11)



421










421





Estimated cash available for distribution


$

10,313



$

18,321



$

1,818



$

28,634



$

1,601























(1)

Represents the non-cash allocation of the Predecessor's corporate overhead in selling, general and administrative expenses.

(2)

Represents acquisition-related financial advisory, legal and accounting fees associated with ROFO Project interests purchased and expected to be purchased by us in the future.

(3)

Represents the changes in fair value of interest rate swaps that were not designated as cash flow hedges.

(4)

Represents our proportionate share of net interest expense, income taxes and depreciation, amortization and accretion from our unconsolidated affiliates that are accounted for under the equity method.

(5)

Equity in earnings of unconsolidated affiliates represents the earnings from the Solar Gen 2 Project, the North Star Project and the Lost Hills Blackwell Project and is included on our unaudited condensed consolidated statements of operations.

(6)

Represents cash interest payments related to our term loan and revolving credit facilities post-IPO. The interest payments for the Quinto Credit Facility on the Predecessor's combined carve-out financial statements were excluded as they were funded by one of our Sponsors.

(7)

Cash distributions from unconsolidated affiliates represent the cash received by OpCo with respect to its 49% interest in the Solar Gen 2 Project, the North Star Project and the Lost Hills Blackwell Project.

(8)

State and local rebates represent cash received from state or local governments for owning certain solar energy systems. The receipt of state and local rebates is accounted for as a reduction in the asset carrying value rather than operating revenue.

(9)

Cash proceeds from sales-type residential leases, net, represent gross rental cash receipts for sales-type leases, less sales-type revenue and lease interest income that is already reflected in net income (loss) during the period. The corresponding revenue for such leases was recognized in the period in which such lease was placed in service, rather than in the period in which the rental payment was received, due to the characterization of these leases under U.S. GAAP.

(10)

Represents an indemnity payment from SunPower related to the shortfall in the reimbursable network upgrade costs related to the Quinto Project, which is owed to OpCo in accordance with the Omnibus Agreement.

(11)

Test electricity generation represents the sale of electricity that was generated prior to COD by the Kingbird Project. Solar systems may begin generating electricity prior to COD as a result of the installation and interconnection of individual solar modules, which occurs over time during the construction and commission period. The sale of test electricity generation is accounted for as a reduction in the asset carrying value rather than operating revenue prior to COD, even though it generates cash for the related Project Entity.

 


8point3 Energy Partners LP
FY 2016 Q3 Guidance
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)








(in millions)


Low



High


Net income


$

10.0



$

11.0


Add (Less):









Income tax provision



6.0




6.0


Acquisition-related transaction costs



0.5




0.5


Interest expense, net of interest income



3.5




3.5


Depreciation, amortization and accretion



6.5




6.5


Add proportionate share from equity method investments (1):









Depreciation, amortization and accretion



2.5




2.5


Adjusted EBITDA


$

29.0



$

30.0


Less:









Equity in earnings of unconsolidated affiliates, net with (1)



(9.5)




(10.0)


Cash interest paid



(3.5)




(3.5)


Cash distributions to non-controlling interests



(3.0)




(3.0)


Add:









Cash distributions from unconsolidated affiliates



6.5




7.0


Cash proceeds from sales-type residential leases



0.5




0.5


Estimated cash available for distribution


$

20.0



$

21.0




(1)

Represents our proportionate share of net interest expense, income taxes and depreciation, amortization and accretion from our unconsolidated affiliates that are accounted for under the equity method.

 

8point3 Energy Partners LP
FY 2016 Guidance
Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution (CAFD)








(in millions)


Low



High


Net income


$

1.8



$

3.8


Add (Less):









Income tax provision



18.7




18.7


Acquisition-related transaction costs



3.2




3.2


Interest expense, net of interest income



12.3




12.3


Depreciation, amortization and accretion



22.7




22.7


Stock-based compensation



0.2




0.2


Unrealized gain on derivatives



(0.2)




(0.2)


Add proportionate share from equity method investments (1):









Depreciation, amortization and accretion



10.1




10.1


Adjusted EBITDA


$

68.8



$

70.8


Less:









Equity in earnings of unconsolidated affiliates, net with (1)



(25.5)




(26.5)


Cash interest paid



(12.9)




(12.9)


Cash distributions to non-controlling interests



(6.9)




(6.4)


Add:









Cash distributions from unconsolidated affiliates (2)



27.5




28.5


Indemnity payments from SunPower



10.0




10.0


Network upgrade refund



7.0




7.0


State and local rebate



0.3




0.3


Test electricity generation



0.4




0.4


Cash proceeds from sales-type residential leases



2.3




2.3


Estimated cash available for distribution


$

71.0



$

73.5




(1)

Represents our proportionate share of net interest expense, income taxes and depreciation, amortization and accretion from our unconsolidated affiliates that are accounted for under the equity method.

(2)

Cash distributions from unconsolidated affiliates represent the cash received by OpCo with respect to its 49% interest in the Solar Gen 2 Project, the North Star Project and the Lost Hills Blackwell Project. Cash distributions from unconsolidated affiliates includes approximately $2.5 million in network upgrade reimbursements currently expected to be received in the fourth quarter of 2016.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/8point3-energy-partners-reports-second-quarter-2016-results-300292243.html

SOURCE 8point3 Energy Partners LP

Investors, Bob Okunski, 408-240-5447, bokunski@8point3energypartners.com, Media, Natalie Wymer, 408-457-2348, nwymer@8point3energypartners.com