Altius Renewable Royalties Reports Q1 2024 Financial Results
Altius Renewable Royalties Corp. reported strong financial results for Q1 2024, with a 145% increase in royalty revenue compared to the same period in 2023. The net loss was $0.2 million, proportionate revenue was $3.6 million, adjusted EBITDA was $2.5 million, and adjusted operating cash flow was $0.6 million. GBR joint venture's revenue growth was driven by non-recurring events like project sales proceeds and escrow releases. Despite increased revenues, there were also higher costs due to losses in equity investments. GBR announced new royalty investments and maintained annual revenue guidance for 2024. The holds significant cash and liquidity for future investments.
Strong 145% increase in royalty revenue for Q1 2024 compared to the same period in 2023.
Net loss of $0.2 million, proportionate revenue of $3.6 million, adjusted EBITDA of $2.5 million, and adjusted operating cash flow of $0.6 million for Q1 2024.
GBR joint venture saw revenue growth from non-recurring events like project sales proceeds and escrow releases.
New royalty investments announced by GBR and maintained annual revenue guidance for 2024.
Significant cash of $67.2 million and available liquidity of $105.6 million for future investments.
Increased costs due to losses in equity investments Bluestar Energy Capital and Nova Energy of approximately $2.9 million.
Higher expenses with minimal offsetting revenues at Bluestar and Nova due to early-stage renewable energy development.
Impact of non-recurring revenue events may not be sustainable for future quarters.
All currency references in USD unless otherwise indicated
ST. JOHN’S,
The Corporation's
Selected financial information for the Corporation is included in the table below:
|
Three Months ended |
|||||
March 31, 2024 |
March 31, 2023 |
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Revenue per consolidated financial statements |
$ |
1,087,000 |
|
$ |
558,000 |
|
Net loss |
|
(240,000 |
) |
|
(106,000 |
) |
Total assets |
|
218,915,000 |
|
|
202,004,000 |
|
Total liabilities |
|
10,370,000 |
|
|
6,301,000 |
|
|
|
|
||||
Non-GAAP financial measures(1) |
|
|
||||
Proportionate revenue (1) |
$ |
3,563,000 |
|
$ |
1,554,000 |
|
Adjusted EBITDA (1) |
|
2,513,000 |
|
|
569,000 |
|
Adjusted operating cash flow(1) |
|
637,000 |
|
|
19,000 |
|
For the quarter ended March 31, 2024, ARR reported a net loss of
Included in the GBR joint venture's first quarter revenue is
During the quarter Hexagon sold a 138 MWac solar energy project in
The Corporation’s current quarter results reflect the proportionate share of increased revenues at GBR offset by the proportionate share of increased costs including GBR’s non-cash share of loss in equity investments Bluestar Energy Capital LLC ("Bluestar") and Nova Energy LLC ("Nova") of approximately
During the quarter ended March 31, 2024 GBR announced that it had entered into a
GBR also entered into an interconnection (IC) support facility with Hexagon during the quarter, where GBR is providing financing for the refundable portion of interconnection deposits to support the further development of specific renewable energy projects that are also subject to its royalty funding agreement with Hexagon.
For 2024, GBR is maintaining the previously provided annual revenue guidance range of
At March 31, 2024 the Corporation held cash of
Commenting on the quarter, Frank Getman, CEO of GBR, said, "It was a busy quarter with the closing of the Angelo Solar investment with Apex and adding Canyon Wind, which stems from our TGE development portfolio investment, to our growing portfolio of operating royalties. We currently have 895 MW of projects with GBR royalties under construction which will contribute to our operating cash flow later this year and next. Market conditions remain attractive for future deployment into new royalty investments."
Brian Dalton, CEO of ARR added, "While the royalty portfolio continues to grow, I also commend GBR for continuing to innovate and offer solutions that address industry bottlenecks, such as the new interconnection support facility with Hexagon in the MISO Regional Transmission Organization ("RTO"). We look forward to seeing further growth this year and the continuing development of new use cases for GBR's royalty financing structures."
Non-GAAP Financial Measures
- Management uses the following non-GAAP financial measures: proportionate royalty and other revenue (“proportionate revenue”), adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) and adjusted operating cash flow. Management uses these measures to monitor the financial performance of the Corporation and believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors and/or evaluate the results of its underlying business which are held primarily in jointly controlled entities. These measures are intended to provide additional information, not to replace International Financial Reporting Standards (IFRS) measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of our MD&A.
Conference Call Details
A conference call and webcast will be held on Friday, May 3, 2024 at 9:30 am EDT to provide an update and to offer an open Q&A session for analysts and investors. Access details are as follows:
DATE |
Friday, May 3, 2024 at 9:30 am EDT |
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EVENT |
Altius Renewable Royalties Q1 2024 Financial Results Conference Call and Webcast |
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DIAL IN |
(+1) 289 514 5100 OR (+1) 800 717 1738 |
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WEBCAST |
About ARR
ARR is a renewable energy royalty company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. ARR has 35 renewable energy royalties representing approximately 2.4 GW of renewable power on operating projects and an additional approximate 5.8 GW on projects in construction and development phase, across several regional power pools in the
Forward-looking information
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502669813/en/
Flora Wood
Email: Flora@arr.energy
Tel: +1.877.576.2209
Direct: +1.416.346.9020
Ben Lewis
Email: Ben@arr.energy
Tel: +1.877.576.2209
Source: Altius Renewable Royalties Corp.
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