Financial Highlights
-
$187 million of Adjusted EBITDA for second quarter 2015
-
$26 million of Cash Available for Distribution (CAFD) for second
quarter 2015
-
$0.20 per share quarterly dividend to Class A and Class C common stock
($0.80 per share annualized) paid on June 15, 2015 to shareholders of
record as of June 1, 2015
-
Announcing increase in common stock dividend payable in third quarter
of 2015 by 5% over the current quarterly dividend rate, a 15% increase
over third quarter 2014
Completed New Corporate Financings
-
Issued 28,198,000 shares of Class C common stock at $22.00 per share
-
Issued $287.5 million of senior unsecured convertible notes
Acquired 25% Interest in Desert Sunlight
-
Acquired a 25% interest in the Desert Sunlight Solar Farm in
Riverside, CA from GE Unit (NYSE: GE) GE Energy Financial Services for
approximately $285 million, subject to working capital adjustments,
plus the assumption of $287 million of non-recourse project level debt
NRG Energy, Inc. Offer of ROFO Assets
-
NRG Energy, Inc. (NRG) offered NRG Yield the opportunity to purchase a
75% interest in a portfolio of twelve wind facilities consisting of
assets acquired in the EME transaction
Updating Guidance
-
Reducing 2015 Adjusted EBITDA guidance from $690 million to $660
million and 2015 CAFD guidance from $195 million to $160 million to
reflect lower expected wind production across the fleet and a modified
pace of residential solar deployments by NRG Home Solar over the
balance of 2015, partially offset by the impact of acquisitions
-
Excluding the impact of future drop downs, NRG Yield expects its
existing portfolio to deliver $760 million of Adjusted EBITDA and $245
million of CAFD on an annual run rate basis
-
Targeting $0.25 per share quarterly dividend ($1.00 per share
annualized) by the fourth quarter 2016, a 19% increase over the
current rate and a 67% increase since our first post-IPO dividend in
the fourth quarter 2013
PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 4, 2015--
NRG Yield, Inc. (NYSE:NYLD, NYLD.A) today reported second quarter 2015
financial results including Adjusted EBITDA of $187 million and CAFD of
$26 million. Net income attributable to Class A and Class C stockholders
for the three months ended June 30, 2015 was $10 million or $0.15 per
Class A and Class C common share.
“NRG Yield continues to be one of the most prudently robust and diverse
yieldcos in the market, allowing us to continue to transform the energy
industry at an accelerated pace,” said David Crane, Chairman and CEO of
NRG Yield. “While the industry as a whole underperformed this quarter,
as a result of historically low wind resource, NRG Yield’s diversified
asset portfolio provides lower potential volatility, enabling us to
reaffirm both our current dividend and our anticipated trajectory of
dividend growth going forward.”
Overview of Financial and Operating Results
Note 1: In accordance with GAAP, 2014 results have been recast
to include the Drop Down Assets transferred to NRG Yield by NRG on June
30, 2014 and January 2, 2015 as if the combination has been in effect
since the inception of common control.
Table 1: Selected Financial Results
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
($ in millions)
|
|
6/30/15
|
|
6/30/14
|
|
6/30/15
|
|
6/30/14
|
|
|
Operating Revenue
|
|
$
|
217
|
|
$
|
173
|
|
$
|
397
|
|
$
|
313
|
|
|
Net Income
|
|
|
41
|
|
|
42
|
|
|
25
|
|
|
68
|
|
|
Adjusted EBITDA
|
|
|
187
|
|
|
141
|
|
|
309
|
|
|
233
|
|
|
Cash Available for Distribution
|
|
|
26
|
|
|
43
|
|
|
32
|
|
|
48
|
|
Segment Results
Table 2: Adjusted EBITDA
|
($ in millions)
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
Segment
|
|
6/30/15
|
|
6/30/14
|
|
6/30/15
|
|
6/30/14
|
|
|
Conventional
|
|
$
|
78
|
|
|
$
|
79
|
|
|
$
|
143
|
|
|
$
|
131
|
|
|
|
Renewable
|
|
|
100
|
|
|
|
51
|
|
|
|
147
|
|
|
|
73
|
|
|
|
Thermal
|
|
|
12
|
|
|
|
13
|
|
|
|
25
|
|
|
|
33
|
|
|
|
Corporate
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
|
Adjusted EBITDA
|
|
$
|
187
|
|
|
$
|
141
|
|
|
$
|
309
|
|
|
$
|
233
|
|
|
Table 3: Net Income / (Loss)
|
($ in millions)
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Segment
|
|
6/30/15
|
|
6/30/14
|
|
6/30/15
|
|
6/30/14
|
|
Conventional
|
|
$
|
33
|
|
|
$
|
26
|
|
|
$
|
59
|
|
|
$
|
51
|
|
|
Renewable
|
|
|
24
|
|
|
|
20
|
|
|
|
(12
|
)
|
|
|
15
|
|
|
Thermal
|
|
|
5
|
|
|
|
6
|
|
|
|
11
|
|
|
|
19
|
|
|
Corporate
|
|
|
(21
|
)
|
|
|
(10
|
)
|
|
|
(33
|
)
|
|
|
(17
|
)
|
|
Net Income
|
|
$
|
41
|
|
|
$
|
42
|
|
|
$
|
25
|
|
|
$
|
68
|
|
For quarter ended June 30, 2015, NRG Yield reported Net Income of $41
million, Adjusted EBITDA of $187 million, and CAFD of $26 million.
Second quarter Adjusted EBITDA was higher than the same period in 2014
by $46 million primarily as a result of the acquisition of the Alta Wind
portfolio in the third quarter 2014. Second quarter CAFD was $17 million
lower than the same period in 2014 primarily as a result of the timing
of the Alta Wind debt service and additional corporate interest.
Operational Performance
|
Table 4: Selected Operating Results
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
(MWh and MWht in thousands)
|
|
6/30/15
|
|
6/30/14
|
|
6/30/15
|
|
6/30/14
|
|
|
Equivalent Availability Factor (Conventional)
|
|
96.5 %
|
|
97.6 %
|
|
89.4 %
|
|
92.8 %
|
|
|
Renewable Generation Sold (MWh)
|
|
1,181
|
|
563
|
|
1,904
|
|
774
|
|
|
Thermal Generation Sold (MWht)1
|
|
517
|
|
494
|
|
1,178
|
|
1,233
|
|
1 Also includes Thermal MWh sold
For second quarter 2015, NRG Yield maintained strong safety performance
with a 0.97 incident rate. Generation in the renewable segment was 110%
higher in the second quarter versus the same period in 2014 as a result
of the Alta acquisition. Although overall renewable generation was
substantially higher from the addition of assets, our wind assets
continue to experience historically low wind resource leading to a
downward adjustment to expected wind production over the balance of the
year.
Liquidity and Capital Resources
Table 5: Liquidity
|
($ in millions)
|
|
6/30/15
|
|
3/31/15
|
|
12/31/14
|
|
|
Cash and Cash Equivalents
|
|
$
|
281
|
|
$
|
114
|
|
$
|
406
|
|
|
Restricted Cash
|
|
|
38
|
|
|
46
|
|
|
45
|
|
|
Total Cash
|
|
$
|
319
|
|
$
|
160
|
|
$
|
451
|
|
|
Revolver Availability
|
|
|
196
|
|
|
219
|
|
|
412
|
|
|
Total Liquidity
|
|
$
|
515
|
|
$
|
379
|
|
$
|
863
|
|
Total liquidity as of June 30, 2015 was $515 million, a decrease of $348
million from December 31, 2014. This reflects a decrease in revolver
availability of $216 million and a decrease in cash of $132 million
primarily used to fund drop down acquisitions from NRG.1
Distributed Generation Partnership
On May 8, 2015, NRG and NRG Yield completed the formation of a new
partnership that will invest in and hold operating portfolios of
distributed solar assets developed by NRG Renew, a subsidiary of NRG.
Under the terms of the partnership agreement, NRG Yield will receive 95%
of the portfolio economics until achieving a targeted return after which
NRG will receive 95% of the economics.
NRG Yield has initially committed to invest up to $100 million of cash
equity into the partnership, of which approximately $4 million has been
invested to date. The partnership is expected to be fully funded within
18 months from formation.
Completed Acquisition of 25% Interest in Desert Sunlight
On June 29, 2015, NRG Yield acquired a 25 percent interest in the Desert
Sunlight Solar Farm in Riverside, CA from GE for $285 million, subject
to working capital adjustments, plus the assumption of $287 million of
non-recourse project level debt2.
The acquisition, which results in an increase of 137.5 MW of operating
solar capacity owned by NRG Yield, places the Company into a partnership
with subsidiaries of NextEra Energy and Sumitomo Financial, who are the
50 percent and 25 percent owners of Desert Sunlight, respectively. The
transaction is expected to contribute Adjusted EBITDA of $45 million and
CAFD of $22 million on an annual run rate basis.
Completed Tax Equity Financing of Alta X and Alta XI Wind Facilities
On June 30, 2015, NRG Yield closed a new tax equity facility primarily
to monetize production tax credits from the Alta Wind X and XI wind
projects. This financing resulted in $119 million of cash proceeds after
expenses. Proceeds from this transaction and a portion of the proceeds
from the recently completed equity and debt offerings were utilized to
repay the entire outstanding project indebtedness associated with Alta X
and Alta XI wind facilities resulting in an increase in annual run rate
CAFD of $28 million.
Completed Class C Common Stock Offering and Convertible Debt Issuance
On June 29, 2015, NRG Yield issued 28,198,000 shares of Class C common
stock at $22.00 per share for net proceeds of $600 million.
Additionally, NRG Yield issued $287.5 million of 3.25% convertible
senior notes due 2020. The net proceeds of both of these issuances were
used for the acquisition of a 25% interest in the Desert Sunlight Solar
Farm for $285 million3, to repay a portion of the $491
million in debt associated with the Alta X and Alta XI wind facilities
(in order to facilitate the tax equity financing transaction described
above), and to repay a portion of the outstanding indebtedness under NRG
Yield’s revolving credit facility.
Drop-Down of Assets from NRG
NRG offered the Company the opportunity to acquire a 75% stake in an 814
net MW portfolio of twelve wind projects consisting of assets acquired
by NRG in the EME transaction and part of the expanded ROFO agreement.
The portfolio is subject to a tax equity arrangement. The acquisition,
subject to approval by NRG Yield’s independent directors, is expected to
generate approximately $35 million in annual Adjusted EBITDA and $20
million of annual CAFD on a run rate basis4. The wind assets
included in the portfolio are:
-
Elkhorn Ridge – 54 MW wind facility located in Bloomfield, NE
-
San Juan Mesa – 90 MW wind facility located in Elida, NM
-
Wildorado – 161 MW wind facility located in Vega, TX
-
Crosswinds – 21 MW wind facility located in Ayrshire, IA
-
Forward – 29 MW wind facility located in Berlin, PA
-
Hardin – 15 MW wind facility located in Jefferson, IA
-
Odin – 20 MW wind facility located in Odin, MN
-
Sleeping Bear – 95 MW wind facility located in Woodward, OK
-
Spanish Fork – 19 MW wind facility located in Spanish Fork, UT
-
Lookout – 38 MW wind facility located in Berlin, PA
-
Goat Wind – 150 MW wind facility located in Sterling City, TX
-
Elbow Creek – 122 MW wind facility located in Howard County, TX
Quarterly Dividend Updates
On May 20, 2015, the Company’s Board of Directors declared a quarterly
dividend on each of the Company’s Class A and Class C common stock of
$0.20 per share ($0.80 per share annualized) paid on June 15, 2015 to
shareholders of record as of June 1, 2015. This equates to a 2.6%
increase over the prior quarter.
On August 4, 2015, the Company announced the declaration of a quarterly
dividend on Class A and Class C common stock of $0.21 per share ($0.84
per share annualized) payable on September 15, 2015 to shareholders of
record as of September 1, 2015. This equates to a 5% increase over the
prior quarter and a 15% increase year over year.
The Company's common stock dividend is subject to available capital,
market conditions and compliance with associated laws and regulations.
Seasonality
NRG Yield’s quarterly operating results and CAFD are significantly
impacted by seasonal factors. The majority of NRG Yield’s revenues are
generated from the months of May through September, as contracted
pricing and renewable resources are at their highest levels in the
Company’s core markets. The factors driving the fluctuation in Adjusted
EBITDA and CAFD include the following:
-
Higher summer capacity prices from conventional assets
-
Higher solar intensity during the summer months; and
-
Debt service payments which are disbursed either quarterly or
semi-annually, thereby allowing distributions to be allowed from the
projects with non-recourse debt
The Company has taken into consideration the timing of such revenues and
costs to ensure sufficient funds are available for distribution on a
quarterly basis.
Financial Guidance
Due to the continued unusually low wind production across the fleet, the
Company has revised its expectations for wind production over the
balance of 2015. As a result of these reduced expectations, combined
with a lower expected pace of deployments of residential solar leases
from NRG, NRG Yield is updating full year guidance for Adjusted EBITDA
to $660 million and CAFD to $160 million. The Company does not expect
the reduction in 2015 Adjusted EBITDA and CAFD guidance to have any
impact on either its current dividend or expected long-term dividend
growth.
Without any effect to future acquisitions or drop downs, the Company
expects the current portfolio to generate $760 million of Adjusted
EBITDA and $245 million of CAFD on an annual run rate basis. Based on
these updated annual run-rate projections, the Company is also targeting
a quarterly dividend of $0.25 per share ($1.00 per share annualized) on
each of the Company’s Class A and Class C common stock by the 4th
quarter of 2016. This represents a 19% increase over the current
annualized dividend rate and 67% increase since NRG Yield’s first
dividend in the fourth quarter of 2013.
For third quarter 2015, the Company expects Adjusted EBITDA of $195
million and CAFD of $110 million, although actual results may vary
depending on the operating performance of the assets.
Table 6: Adjusted EBITDA and Cash Available for Distribution Guidance
|
($ in millions)
|
|
Third Quarter
|
|
2015 Full Year
|
|
Annual Run Rate
|
|
|
Adjusted EBITDA
|
|
$
|
195
|
|
|
$
|
660
|
|
|
$
|
760
|
|
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates
|
|
|
(45
|
)
|
|
|
(101
|
)
|
|
|
(119
|
)
|
|
|
Cash distributions from unconsolidated affiliates
|
|
|
25
|
|
|
|
82
|
|
|
|
62
|
|
|
|
Cash interest paid
|
|
|
(54
|
)
|
|
|
(241
|
)
|
|
|
(234
|
)
|
|
|
Maintenance capital expenditures
|
|
|
(7
|
)
|
|
|
(15
|
)
|
|
|
(20
|
)
|
|
|
Change in other assets
|
|
|
66
|
|
|
|
(12
|
)
|
|
|
(3
|
)
|
|
|
Principal amortization of indebtedness
|
|
|
(70
|
)
|
|
|
(213
|
)
|
|
|
(201
|
)
|
|
|
Estimated Cash Available for Distribution
|
|
$
|
110
|
|
|
$
|
160
|
|
|
$
|
245
|
|
|
About NRG Yield
NRG Yield owns a diversified portfolio of contracted renewable and
conventional generation and thermal infrastructure assets in the United
States, including fossil fuel, solar and wind power generation
facilities that provide the capacity to support more than two million
American homes and businesses. Our thermal infrastructure assets provide
steam, hot water and/or chilled water, and in some instances
electricity, to commercial businesses, universities, hospitals and
governmental units in multiple locations. NRG Yield is traded on the New
York Stock Exchange under the symbol NYLD. Visit nrgyield.com for more
information.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements are
subject to certain risks, uncertainties and assumptions and include our
Adjusted EBITDA, cash available for distribution, expected earnings,
future growth and financial performance, and typically can be identified
by the use of words such as “expect,” “estimate,” “anticipate,”
“forecast,” “plan,” “believe” and similar terms. Although NRG Yield
believes that its expectations are reasonable, it can give no assurance
that these expectations will prove to have been correct, and actual
results may vary materially. Factors that could cause actual results to
differ materially from those contemplated above include, among others,
general economic conditions, hazards customary in the power industry,
weather conditions, competition in wholesale power markets, the
volatility of energy and fuel prices, failure of customers to perform
under contracts, changes in the wholesale power markets, changes in
government regulation, the condition of capital markets generally, our
ability to access capital markets, unanticipated outages at our
generation facilities, adverse results in current and future litigation,
failure to identify or successfully execute acquisitions, our ability to
enter into new contracts as existing contracts expire, our ability to
acquire assets from NRG Energy, Inc. or third parties, our ability to
maintain or create successful partnering relationships with NRG Energy
and other third parties, our ability to close the drop-down
transactions, and our ability to maintain and grow our quarterly
dividends. Furthermore, any dividends are subject to available capital,
market conditions, and compliance with associated laws and regulations.
NRG Yield undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The Adjusted EBITDA and cash available for
distribution are estimates as of today’s date, August 4, 2015, and are
based on assumptions believed to be reasonable as of this date. NRG
Yield expressly disclaims any current intention to update such guidance.
The foregoing review of factors that could cause NRG Yield’s actual
results to differ materially from those contemplated in the
forward-looking statements included in this news release should be
considered in connection with information regarding risks and
uncertainties that may affect NRG Yield’s future results included in NRG
Yield’s filings with the Securities and Exchange Commission at www.sec.gov.
In addition, NRG Yield makes available free of charge at www.nrgyield.com,
copies of materials it files with, or furnish to, the SEC.
|
|
|
|
|
|
|
|
|
ITEM 1 - FINANCIAL STATEMENTS
|
|
|
NRG YIELD, INC.
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
(In millions, except per share amounts)
|
|
2015
|
|
2014(a)
|
|
2015
|
|
2014(a)
|
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
$
|
217
|
|
|
$
|
173
|
|
|
$
|
397
|
|
|
$
|
313
|
|
|
Operating Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations
|
|
67
|
|
|
53
|
|
|
142
|
|
|
113
|
|
|
Depreciation and amortization
|
|
59
|
|
|
54
|
|
|
113
|
|
|
78
|
|
|
General and administrative - affiliate
|
|
3
|
|
|
2
|
|
|
6
|
|
|
4
|
|
|
Acquisition-related transaction and integration costs
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
Total operating costs and expenses
|
|
130
|
|
|
109
|
|
|
262
|
|
|
195
|
|
|
Operating Income
|
|
87
|
|
|
64
|
|
|
135
|
|
|
118
|
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
9
|
|
|
14
|
|
|
10
|
|
|
15
|
|
|
Other income, net
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
Loss on debt extinguishment
|
|
(7
|
)
|
|
-
|
|
|
(7
|
)
|
|
-
|
|
|
Interest expense
|
|
(44
|
)
|
|
(34
|
)
|
|
(114
|
)
|
|
(61
|
)
|
|
Total other expense, net
|
|
(42
|
)
|
|
(20
|
)
|
|
(110
|
)
|
|
(45
|
)
|
|
Income Before Income Taxes
|
|
45
|
|
|
44
|
|
|
25
|
|
|
73
|
|
|
Income tax expense
|
|
4
|
|
|
2
|
|
|
-
|
|
|
5
|
|
|
Net Income
|
|
41
|
|
|
42
|
|
|
25
|
|
|
68
|
|
|
Less: Pre-acquisition net income of Drop Down Assets
|
|
-
|
|
|
17
|
|
|
-
|
|
|
25
|
|
|
Net Income Excluding Pre-acquisition Net Income of Drop Down
Assets
|
|
41
|
|
|
25
|
|
|
25
|
|
|
43
|
|
|
Less: Net income attributable to noncontrolling interests (b)
|
|
31
|
|
|
19
|
|
|
20
|
|
|
33
|
|
|
Net Income Attributable to NRG Yield, Inc.
|
|
$
|
10
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
10
|
|
|
Earnings Per Share Attributable to NRG Yield, Inc. Class A and
Class C Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of Class A and Class C common shares
outstanding - basic and diluted
|
|
35
|
|
|
23
|
|
|
35
|
|
|
23
|
|
|
Earnings per Weighted Average Class A and Class C Common Share -
Basic and Diluted
|
|
$
|
0.15
|
|
|
$
|
0.13
|
|
|
$
|
0.07
|
|
|
$
|
0.21
|
|
|
Dividends Per Class A Common Share
|
|
0.20
|
|
|
0.35
|
|
|
0.59
|
|
|
0.68
|
|
|
Dividends Per Class C Common Share
|
|
$
|
0.20
|
|
|
N/A
|
|
|
$
|
0.20
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Retrospectively adjusted as discussed in Note 1, Nature
of Business.
(b) The calculation of income attributable to noncontrolling
interests excludes pre-acquisition net income of the Drop Down Assets.
See accompanying notes to consolidated financial statements.
|
|
|
|
|
|
|
NRG YIELD, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
|
|
2015
|
|
2014 (a)
|
|
2015
|
|
2014 (a)
|
|
|
|
(In millions)
|
|
Net Income
|
|
$
|
41
|
|
|
$
|
42
|
|
|
$
|
25
|
|
|
$
|
68
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on derivatives, net of income tax benefit
(expense) of ($4), $0, $4 and $0
|
|
21
|
|
|
(22
|
)
|
|
4
|
|
|
(34
|
)
|
|
Other comprehensive income (loss)
|
|
21
|
|
|
(22
|
)
|
|
4
|
|
|
(34
|
)
|
|
Comprehensive Income
|
|
62
|
|
|
20
|
|
|
29
|
|
|
34
|
|
|
Less: Pre-acquisition net income of Drop Down Assets
|
|
-
|
|
|
17
|
|
|
-
|
|
|
25
|
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
|
46
|
|
|
1
|
|
|
31
|
|
|
8
|
|
|
Comprehensive Income (Loss) Attributable to NRG Yield, Inc.
|
|
$
|
16
|
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
(a) Retrospectively adjusted as discussed in Note 1, Nature
of Business.
See accompanying notes to consolidated financial statements.
|
|
|
|
|
|
|
NRG YIELD, INC.
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
June 30, 2015
|
|
2014(a)
|
|
ASSETS
|
|
(In millions)
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
281
|
|
|
$
|
406
|
|
|
Restricted cash
|
|
38
|
|
|
45
|
|
|
Accounts receivable - trade
|
|
98
|
|
|
85
|
|
|
Accounts receivable - affiliate
|
|
1
|
|
|
-
|
|
|
Inventory
|
|
29
|
|
|
27
|
|
|
Derivative instruments
|
|
4
|
|
|
-
|
|
|
Notes receivable
|
|
7
|
|
|
6
|
|
|
Deferred income taxes
|
|
14
|
|
|
16
|
|
|
Prepayments and other current assets
|
|
19
|
|
|
21
|
|
|
Total current assets
|
|
491
|
|
|
606
|
|
|
Property, plant and equipment
|
|
|
|
|
|
In service
|
|
4,919
|
|
|
4,796
|
|
|
Under construction
|
|
8
|
|
|
8
|
|
|
Total property, plant and equipment
|
|
4,927
|
|
|
4,804
|
|
|
Less accumulated depreciation
|
|
(449
|
)
|
|
(338
|
)
|
|
Net property, plant and equipment
|
|
4,478
|
|
|
4,466
|
|
|
Other Assets
|
|
|
|
|
|
Equity investments in affiliates
|
|
549
|
|
|
227
|
|
|
Notes receivable
|
|
13
|
|
|
15
|
|
|
Intangible assets, net of accumulated amortization of $64 and $36
|
|
1,389
|
|
|
1,423
|
|
|
Derivative instruments
|
|
4
|
|
|
2
|
|
|
Deferred income taxes
|
|
140
|
|
|
118
|
|
|
Other non-current assets
|
|
144
|
|
|
108
|
|
|
Total other assets
|
|
2,239
|
|
|
1,893
|
|
|
Total Assets
|
|
$
|
7,208
|
|
|
$
|
6,965
|
|
(a) Retrospectively adjusted as discussed in Note 1, Nature
of Business.
See accompanying notes to consolidated financial statements.
|
|
|
|
|
|
|
NRG YIELD, INC.
CONSOLIDATED BALANCE SHEETS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
June 30, 2015
|
|
2014(a)
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
(In millions, except share
information)
|
|
Current Liabilities
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
407
|
|
|
$
|
214
|
|
|
Accounts payable
|
|
23
|
|
|
20
|
|
|
Accounts payable — affiliate
|
|
60
|
|
|
46
|
|
|
Derivative instruments
|
|
43
|
|
|
48
|
|
|
Accrued expenses and other current liabilities
|
|
37
|
|
|
61
|
|
|
Total current liabilities
|
|
570
|
|
|
389
|
|
|
Other Liabilities
|
|
|
|
|
|
Long-term debt
|
|
4,336
|
|
|
4,573
|
|
|
Derivative instruments
|
|
44
|
|
|
69
|
|
|
Other non-current liabilities
|
|
52
|
|
|
49
|
|
|
Total non-current liabilities
|
|
4,432
|
|
|
4,691
|
|
|
Total Liabilities
|
|
5,002
|
|
|
5,080
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none
issued
|
|
|
|
|
|
|
|
Class A, Class B, Class C and Class D common stock, $0.01 par value;
3,000,000,000 shares authorized (Class A 500,000,000, Class B
500,000,000, Class C 1,000,000,000, Class D 1,000,000,000);
182,848,000 (Class A 34,586,250, Class B 42,738,750, Class C
62,784,250, Class D 42,738,750) and 154,650,000 (Class A 34,586,250,
Class B 42,738,750, Class C 34,586,250, Class D 42,738,750) shares
issued and outstanding at June 30, 2015 and December 31, 2014
|
|
1
|
|
|
—
|
|
|
Additional paid-in capital
|
|
1,852
|
|
|
1,240
|
|
|
Retained earnings
|
|
8
|
|
|
3
|
|
|
Accumulated other comprehensive loss
|
|
(16
|
)
|
|
(9
|
)
|
|
Noncontrolling interest
|
|
361
|
|
|
651
|
|
|
Total Stockholders' Equity
|
|
2,206
|
|
|
1,885
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
7,208
|
|
|
$
|
6,965
|
|
(a) Retrospectively adjusted as discussed in Note 1, Nature
of Business.
See accompanying notes to consolidated financial statements.
|
|
|
|
|
NRG YIELD, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
2015
|
|
2014 (a)
|
|
|
|
(In millions)
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
25
|
|
|
$
|
68
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Distributions in excess of equity in earnings of unconsolidated
affiliates
|
|
18
|
|
|
(8
|
)
|
|
Depreciation and amortization
|
|
113
|
|
|
78
|
|
|
Amortization of financing costs and debt discount/premiums
|
|
6
|
|
|
5
|
|
|
Amortization of intangibles and out-of-market contracts
|
|
26
|
|
|
1
|
|
|
Adjustment for debt extinguishment
|
|
7
|
|
|
-
|
|
|
Changes in deferred income taxes
|
|
-
|
|
|
5
|
|
|
Changes in derivative instruments
|
|
(35
|
)
|
|
(5
|
)
|
|
Changes in other working capital
|
|
(72
|
)
|
|
(69
|
)
|
|
Net Cash Provided by Operating Activities
|
|
88
|
|
|
75
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
(37
|
)
|
|
-
|
|
|
Acquisition of Drop Down Assets, net of cash acquired
|
|
(489
|
)
|
|
(336
|
)
|
|
Capital expenditures
|
|
(8
|
)
|
|
(29
|
)
|
|
Decrease in restricted cash
|
|
7
|
|
|
49
|
|
|
Decrease in notes receivable
|
|
3
|
|
|
5
|
|
|
Proceeds from renewable energy grants
|
|
-
|
|
|
137
|
|
|
Investments in unconsolidated affiliates
|
|
(313
|
)
|
|
(15
|
)
|
|
Other
|
|
-
|
|
|
11
|
|
|
Net Cash Used in Investing Activities
|
|
(837
|
)
|
|
(178
|
)
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
Contributions from noncontrolling interests
|
|
119
|
|
|
-
|
|
|
Capital contributions from NRG
|
|
-
|
|
|
2
|
|
|
Distributions and return of capital to NRG
|
|
-
|
|
|
(25
|
)
|
|
Proceeds from the issuance of common stock
|
|
600
|
|
|
-
|
|
|
Payment of dividends and distributions to shareholders
|
|
(61
|
)
|
|
(44
|
)
|
|
Proceeds from issuance of long-term debt
|
|
575
|
|
|
386
|
|
|
Payment of debt issuance costs
|
|
(11
|
)
|
|
(13
|
)
|
|
Payments for long-term debt
|
|
(598
|
)
|
|
(154
|
)
|
|
Net Cash Provided by Financing Activities
|
|
624
|
|
|
152
|
|
|
Net (Decrease) Increase in Cash and Cash Equivalents
|
|
(125
|
)
|
|
49
|
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
406
|
|
|
59
|
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
281
|
|
|
$
|
108
|
|
(a) Retrospectively adjusted as discussed in Note 1, Nature
of Business.
See accompanying notes to consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-1: Second Quarter 2015 Segment Adjusted EBITDA
Reconciliation
|
|
|
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to Net Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
|
Net Income/(Loss)
|
|
33
|
|
24
|
|
5
|
|
(21)
|
|
41
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
-
|
|
-
|
|
-
|
|
4
|
|
4
|
|
|
Interest Expense, net
|
|
13
|
|
16
|
|
2
|
|
13
|
|
44
|
|
|
Depreciation, Amortization, and ARO Expense
|
|
20
|
|
34
|
|
4
|
|
-
|
|
58
|
|
|
Contract Amortization
|
|
1
|
|
12
|
|
1
|
|
-
|
|
14
|
|
|
Loss on Debt Extinguishment
|
|
7
|
|
-
|
|
-
|
|
-
|
|
7
|
|
|
Merger and Transaction Costs
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|
Mark to Market (MtM) Losses/(Gains) on economic hedges
|
|
-
|
|
4
|
|
-
|
|
-
|
|
4
|
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
4
|
|
10
|
|
-
|
|
-
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
78
|
|
100
|
|
12
|
|
(3)
|
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-2: Second Quarter 2014 Segment Adjusted EBITDA
Reconciliation
|
|
|
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to Net Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
|
Net Income/(Loss)
|
|
26
|
|
20
|
|
6
|
|
(10)
|
|
42
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
-
|
|
-
|
|
-
|
|
2
|
|
2
|
|
|
Interest Expense, net
|
|
15
|
|
12
|
|
2
|
|
6
|
|
35
|
|
|
Depreciation, Amortization, and ARO Expense
|
|
34
|
|
15
|
|
5
|
|
-
|
|
54
|
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
4
|
|
4
|
|
-
|
|
-
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
79
|
|
51
|
|
13
|
|
(2)
|
|
141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-3: YTD June 30, 2015 Segment Adjusted EBITDA
Reconciliation
|
|
|
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to Net Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
|
Net Income/(Loss)
|
|
59
|
|
(12)
|
|
11
|
|
(33)
|
|
25
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense, net
|
|
25
|
|
59
|
|
4
|
|
26
|
|
114
|
|
|
Depreciation, Amortization, and ARO Expense
|
|
42
|
|
62
|
|
9
|
|
-
|
|
113
|
|
|
Contract Amortization
|
|
2
|
|
23
|
|
1
|
|
-
|
|
26
|
|
|
Loss on Debt Extinguishment
|
|
7
|
|
-
|
|
-
|
|
-
|
|
7
|
|
|
Merger and Transaction Costs
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|
Mark to Market (MtM) Losses/(Gains) on economic hedges
|
|
-
|
|
(3)
|
|
-
|
|
-
|
|
(3)
|
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
8
|
|
18
|
|
-
|
|
-
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
143
|
|
147
|
|
25
|
|
(6)
|
|
309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-4: YTD June 30, 2014 Segment Adjusted EBITDA
Reconciliation
|
|
|
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to Net Income/(Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
|
Net Income/(Loss)
|
|
51
|
|
15
|
|
19
|
|
(17)
|
|
68
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
-
|
|
-
|
|
-
|
|
5
|
|
5
|
|
|
Interest Expense, net
|
|
26
|
|
23
|
|
4
|
|
8
|
|
61
|
|
|
Depreciation, Amortization, and ARO Expense
|
|
47
|
|
22
|
|
9
|
|
-
|
|
78
|
|
|
Contract Amortization
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
7
|
|
13
|
|
-
|
|
-
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
131
|
|
73
|
|
33
|
|
(4)
|
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-5: Cash Available for Distribution Reconciliation
|
|
|
The following table summarizes the calculation of Cash Available
for Distribution and provides a reconciliation to adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
($ in millions)
|
|
6/30/15
|
|
6/30/14
|
|
6/30/15
|
|
6/30/14
|
|
|
Adjusted EBITDA
|
|
187
|
|
141
|
|
309
|
|
233
|
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates
|
|
(22)
|
|
(21)
|
|
(35)
|
|
(34)
|
|
|
Cash distributions from unconsolidated affiliates
|
|
3
|
|
3
|
|
43
|
|
10
|
|
|
Cash interest paid
|
|
(65)
|
|
(33)
|
|
(122)
|
|
(55)
|
|
|
Maintenance Capital expenditures
|
|
(3)
|
|
(2)
|
|
(6)
|
|
(5)
|
|
|
Change in other assets
|
|
(29)
|
|
(30)
|
|
(66)
|
|
(52)
|
|
|
Principal amortization of indebtedness
|
|
(45)
|
|
(15)
|
|
(91)
|
|
(49)
|
|
|
Cash Available for Distribution
|
|
26
|
|
43
|
|
32
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-6: YTD Second Quarter 2015 Sources and Uses of
Liquidity
|
|
The following table summarizes the sources and uses of liquidity
in the first half of 2015.
|
|
|
|
|
|
|
|
Six months ended
|
|
($ in millions)
|
|
June 30, 2015
|
|
Sources:
|
|
|
|
Proceeds from Issuance of Class C Shares, net of expenses
|
|
$ 600
|
|
Proceeds from Convertible Debt, net of expenses
|
|
281
|
|
Proceeds from Revolver, net of payments
|
|
267
|
|
Proceeds from Alta X/XI Tax Equity, net of expenses
|
|
119
|
|
Net cash Provided by Operating Activities
|
|
88
|
|
Other Cash Inflows
|
|
10
|
|
Uses:
|
|
|
|
Acquisition of Businesses, net of cash acquired
|
|
526
|
|
Payments for Alta X/XI Long-Term Debt
|
|
491
|
|
Investments in unconsolidated affiliates
|
|
313
|
|
Payments for Long-Term Debt
|
|
91
|
|
Dividends and Distributions to NRG Yield. Inc. Shareholders and NRG
Energy
|
|
61
|
|
Capital Expenditures
|
|
8
|
|
|
|
|
|
Change in Cash and Cash Equivalents
|
|
($ 125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix Table A-7: Run-Rate Adjusted EBITDA and Cash Available
for Distribution Reconciliation
|
|
The following table summarizes the calculation of adjusted EBITDA
and cash available for distribution to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alta X-XI Tax
|
|
75% interest of
|
|
|
|
Desert Sunlight
|
|
Equity, net of
|
|
EME Wind Drop
|
|
|
|
Run-Rate
|
|
Corp Debt
|
|
Down
|
|
($ in millions)
|
|
|
|
Run-Rate5
|
|
Run-Rate6
|
|
Income/(Loss) before Tax
|
|
13
|
|
-
|
|
(9)
|
|
Plus:
|
|
|
|
|
|
|
|
Interest Expense, net
|
|
-
|
|
-
|
|
10
|
|
Depreciation, Amortization, and ARO Expense
|
|
-
|
|
-
|
|
45
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
32
|
|
-
|
|
1
|
|
Adjusted EBITDA
|
|
45
|
|
-
|
|
47
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates
|
|
(45)
|
|
-
|
|
(10)
|
|
Cash distributions from unconsolidated affiliates
|
|
22
|
|
-
|
|
10
|
|
Tax Equity Proceeds
|
|
-
|
|
-
|
|
9
|
|
Distributions to non-controlling interest
|
|
-
|
|
(4)
|
|
(7)
|
|
Cash interest paid
|
|
-
|
|
11
|
|
(11)
|
|
Maintenance Capital expenditures
|
|
-
|
|
-
|
|
(1)
|
|
Principal amortization of indebtedness
|
|
-
|
|
21
|
|
(17)
|
|
Cash Available for Distribution
|
|
22
|
|
28
|
|
20
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. These
measurements are not recognized in accordance with GAAP and should not
be viewed as an alternative to GAAP measures of performance. The
presentation of Adjusted EBITDA should not be construed as an inference
that NRG Yield’s future results will be unaffected by unusual or
non-recurring items.
EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is
presented because NRG Yield considers it an important supplemental
measure of its performance and believes debt-holders frequently use
EBITDA to analyze operating performance and debt service capacity.
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for analysis of our
operating results as reported under GAAP. Some of these limitations are:
-
EBITDA does not reflect cash expenditures, or future requirements for
capital expenditures, or contractual commitments;
-
EBITDA does not reflect changes in, or cash requirements for, working
capital needs;
-
EBITDA does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
debt or cash income tax payments;
-
Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced
in the future, and EBITDA does not reflect any cash requirements for
such replacements; and
-
Other companies in this industry may calculate EBITDA differently than
NRG Yield does, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered as a
measure of discretionary cash available to use to invest in the growth
of NRG Yield’s business. NRG Yield compensates for these limitations by
relying primarily on our GAAP results and using EBITDA and Adjusted
EBITDA only supplementally. See the statements of cash flow included in
the financial statements that are a part of this news release.
Adjusted EBITDA is presented as a further supplemental measure of
operating performance. Adjusted EBITDA represents EBITDA adjusted for
mark-to-market gains or losses, asset write offs and impairments; and
factors which we do not consider indicative of future operating
performance. The reader is encouraged to evaluate each adjustment and
the reasons NRG Yield considers it appropriate for supplemental
analysis. As an analytical tool, Adjusted EBITDA is subject to all of
the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG Yield
may incur expenses similar to the adjustments in this news release.
Cash Available for Distribution (CAFD) is adjusted EBITDA plus cash
dividends from unconsolidated affiliates, less maintenance capital
expenditures, pro-rata adjusted EBITDA from unconsolidated affiliates,
cash interest paid, income taxes paid, principal amortization of
indebtedness and changes in others assets. Management believes cash
available for distribution is a relevant supplemental measure of the
Company’s ability to earn and distribute cash returns to investors.
1 See Appendix A-6 for YTD second quarter 2015 Sources and
Uses of Liquidity detail
2 Reflecting the Company’s pro-rata share of non-recourse
project level debt
3 Subject to working capital adjustments
4 Reflects NRG Yield’s pro-rata share of EBITDA and CAFD
expected to be generated by the portfolio on an annual run rate basis
5 Alta reflects interest and principal savings on debt
extinguishment of $491 million of non-recourse debt a run rate basis
6 75% interest in 814 net MW of wind assets primarily
acquired by NRG in the EME transaction, Adjusted EBITDA will be
consolidated on NRG Yield, 75% pro-rata Adjusted EBITDA is approximately
$35 million
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804005857/en/
Source: NRG Yield, Inc.
NRG Yield, Inc.
Media:
Karen Cleeve, 609-524-4608
Marijke
Shugrue, 609-524-5262
or
Investors:
Matt
Orendorff, 609-524-4526
Lindsey Puchyr, 609-524-4527
