Business and Financial Highlights
-
Closed Initial Public Offering (IPO) of 22,511,250 shares on July 22,
2013 at a price of $22 per share, above the initial pricing range of
$19 - $21 per share
-
Second Quarter Results:
-
Adjusted EBITDA of $61 million
-
Cash Available for Distribution of $32 million
-
Pro-rated initial quarterly dividend of $0.23 per share of Class A
common stock (based on initial quarterly dividend of $0.30) expected
to be declared and paid during the fourth quarter 2013
Providing Full Year 2013 and 2014 Guidance
-
Adjusted EBITDA: $240 million and $285 million for 2013 and 2014,
respectively
-
Cash Available for Distribution: $72 million and $103 million for 2013
and 2014, respectively
Reaffirming Twelve Months Ending June 30, 2014 and
June 30, 2015 Guidance
-
Adjusted EBITDA: $282 million and $286 million for June 30, 2014 and
June 30, 2015, respectively
-
Cash Available for Distribution: $87 million and $105 million for June
30, 2014 and June 30, 2015, respectively
PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 14, 2013--
NRG Yield, Inc. (NYSE: NYLD) today reported second quarter 2013
financial and operating results. NRG Yield, Inc. closed its initial
public offering on July 22, 2013 and the financial and operating results
for the second quarter 2013 discussed below reflect the results of the
predecessor of the Company.
“We are pleased to report strong financial and operating results for the
first quarter following our successful initial public offering,” said
NRG Yield Chairman, Chief Executive Officer and President David Crane.
“We believe this marks the beginning of our effort to deliver a
consistent, predictable and steadily growing stream of distributable
cash flows from our contracted asset portfolio to our shareholders.”
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|
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Table 1: Selected Financial Results
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
(dollars in millions)
|
|
6/30/13
|
|
6/30/12
|
|
|
6/30/13
|
|
6/30/12
|
|
Operating Revenue
|
|
79
|
|
42
|
|
|
132
|
|
86
|
|
Net Income
|
|
33
|
|
(1)
|
|
|
40
|
|
4
|
|
Adjusted EBITDA
|
|
61
|
|
25
|
|
|
95
|
|
50
|
|
Cash Available for Distribution
|
|
32
|
|
13
|
|
|
27
|
|
14
|
|
|
|
|
|
Table 2: Selected Operating Results
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
(MWh and MWt in thousands)
|
|
6/30/13
|
|
6/30/12
|
|
|
6/30/13
|
|
6/30/12
|
|
Equivalent Availability Factor (Conventional)
|
|
95.4%
|
|
96.4%
|
|
|
92.4%
|
|
97.3%
|
|
Renewable Generation (MWh)
|
|
241
|
|
124
|
|
|
423
|
|
250
|
|
Thermal Generation (MWht)
|
|
367
|
|
343
|
|
|
871
|
|
760
|
|
|
NRG Yield reported net income for the quarter of $33 million. For the
quarter, Adjusted EBITDA was $61 million and cash available for
distribution was $32 million. Adjusted EBITDA was higher by $36 million,
or 144%, when compared to the same quarter of 2012, primarily driven by
assets that came online during the fourth quarter of 2012 through the
first half of 2013. These assets include within our Renewable segment,
all of the MWs associated with Avra Valley, Alpine, Borrego, and 105MWs
from our 48.95% interest in CVSR, as well as Marsh Landing, which is
within our Conventional segment.
Segment Results
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|
|
Table 3: Adjusted EBITDA
|
|
(dollars in millions)
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
Segment
|
|
6/30/13
|
|
6/30/12
|
|
|
6/30/13
|
|
6/30/12
|
|
Conventional
|
|
26
|
|
8
|
|
|
34
|
|
16
|
|
Renewable
|
|
28
|
|
10
|
|
|
45
|
|
19
|
|
Thermal
|
|
9
|
|
9
|
|
|
20
|
|
19
|
|
Corporate
|
|
(2)
|
|
(2)
|
|
|
(4)
|
|
(4)
|
|
Adjusted EBITDA
|
|
61
|
|
25
|
|
|
95
|
|
50
|
|
|
|
|
|
Table 4: Net Income/(Loss)
|
|
(dollars in millions)
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
Segment
|
|
6/30/13
|
|
6/30/12
|
|
|
6/30/13
|
|
6/30/12
|
|
Conventional
|
|
15
|
|
4
|
|
|
19
|
|
8
|
|
Renewable
|
|
17
|
|
(7)
|
|
|
21
|
|
(5)
|
|
Thermal
|
|
4
|
|
3
|
|
|
9
|
|
7
|
|
Corporate
|
|
(3)
|
|
(1)
|
|
|
(9)
|
|
(6)
|
|
Net Income/(Loss)
|
|
33
|
|
(1)
|
|
|
40
|
|
4
|
|
|
Liquidity and Capital Resources
|
|
|
Table 5: Liquidity
|
|
(dollars in millions)
|
|
|
6/30/13
|
|
12/31/12
|
|
Cash and Cash Equivalents
|
|
|
17
|
|
22
|
|
Restricted Cash
|
|
|
67
|
|
20
|
|
Total Liquidity
|
|
|
84
|
|
42
|
|
|
As of June 30, 2013, NRG Yield had total liquidity of $84 million, an
increase of $42 million from December 31, 2012, driven by $21 million in
1603 cash grant proceeds from the Avra Valley solar project net of
repayment of the cash grant bridge loan, as well as $23 million of cash
held in reserve for remaining construction payments related to the Marsh
Landing facility.
On July 22, 2013, the Company raised $468 million in its initial public
offering with the sale of 22,511,250 shares of Class A common stock and
used $395 million to purchase Class A units in NRG Yield LLC from NRG
Energy Inc. representing a 29.1% interest. It also used $73 million to
purchase an additional 3.5 million Class A units, or 5.4% interest, in
NRG Yield LLC with such funds earmarked for general corporate purposes.
Concurrently, NRG Yield LLC, through its ownership of NRG Yield
Operating LLC, acquired a portfolio of solar, wind, and natural gas
generation and thermal infrastructure assets, primarily located in the
Northeast, Southwest and California regions of the United States from
NRG Energy Inc. in return for 42,738,750 Class B units in NRG Yield LLC.
In connection with the initial public offering NRG Yield LLC and NRG
Yield Operating LLC entered into a $60 million senior secured revolving
credit facility.
Guidance
NRG Yield is reaffirming the Adjusted EBITDA and Cash Available for
Distribution guidance as forecasted in our prospectus of July 16, 2013
of $282 million and $87 million, respectively, for the twelve months
ending June 30, 2014 and $286 million and $105 million, respectively,
for the twelve months ending June 30, 2015. We are also providing
Adjusted EBITDA guidance for the twelve months ending December 31, 2013
and 2014, of $240 million and $285 million respectively, and Cash
Available for Distribution guidance for the twelve months ending
December 31, 2013 and 2014 of $72 million and $103 million,
respectively. Finally, we are also reaffirming our intention to pay a
pro-rated initial quarterly dividend of $0.23 per share of Class A
common stock (calculated from the closing date of the offering through
and including September 30, 2013, and based on our initial quarterly
dividend of $0.30) expected to be declared and paid during the fourth
quarter 2013.
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|
|
Table 6: Adjusted EBITDA and Cash Available for Distribution
Guidance
|
|
|
|
For the twelve months ending
|
|
(dollars in millions)
|
|
12/31/13
|
|
06/30/14
|
|
12/31/14
|
|
06/30/15
|
|
Adjusted EBITDA
|
|
240
|
|
282
|
|
285
|
|
286
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates
|
|
(60)
|
|
(70)
|
|
(75)
|
|
(74)
|
|
Cash distributions from unconsolidated affiliates
|
|
20
|
|
22
|
|
38
|
|
44
|
|
Cash interest paid
|
|
(58)
|
|
(72)
|
|
(65)
|
|
(63)
|
|
Maintenance capital expenditures
|
|
(16)
|
|
(12)
|
|
(10)
|
|
(12)
|
|
Change in other assets
|
|
12
|
|
1
|
|
1
|
|
1
|
|
Principal amortization of indebtedness
|
|
(66)
|
|
(64)
|
|
(71)
|
|
(77)
|
|
Estimated Cash Available for Distribution
|
|
72
|
|
87
|
|
103
|
|
105
|
|
|
About NRG Yield
NRG Yield owns a diversified portfolio of contracted renewable and
conventional generation and thermal infrastructure assets in the U.S.,
including fossil fuel, solar and wind power generation facilities that
provide the capacity to support more than one 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 ten
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 of markets and of environmental emissions, 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 implement acquisitions, our ability to enter into new
contracts as existing contracts expire, our ability to obtain
anticipated Section 1603 Cash Grants 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 14, 2013, 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.
|
|
|
NRG YIELD
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
(In millions, except for per share
amounts)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
$
|
79
|
|
|
$
|
42
|
|
|
$
|
132
|
|
|
$
|
86
|
|
|
Operating Costs and Expenses
|
|
|
|
|
|
|
|
|
|
Cost of operations
|
|
30
|
|
|
26
|
|
|
59
|
|
|
53
|
|
|
Depreciation and amortization
|
|
9
|
|
|
6
|
|
|
19
|
|
|
12
|
|
|
General and administrative — affiliate
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
Total operating costs and expenses
|
|
41
|
|
|
34
|
|
|
82
|
|
|
69
|
|
|
Operating Income
|
|
38
|
|
|
8
|
|
|
50
|
|
|
17
|
|
|
Other Income/(Expense)
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
2
|
|
|
6
|
|
|
6
|
|
|
9
|
|
|
Interest expense
|
|
(6
|
)
|
|
(16
|
)
|
|
(11
|
)
|
|
(20
|
)
|
|
Total other expense
|
|
(4
|
)
|
|
(10
|
)
|
|
(5
|
)
|
|
(11
|
)
|
|
Income/(Loss) Before Income Taxes
|
|
34
|
|
|
(2
|
)
|
|
45
|
|
|
6
|
|
|
Income tax expense/(benefit)
|
|
1
|
|
|
(1
|
)
|
|
5
|
|
|
2
|
|
|
Net Income/(Loss)
|
|
33
|
|
|
(1
|
)
|
|
40
|
|
|
4
|
|
|
|
See accompanying notes to combined financial statements.
|
|
|
NRG YIELD
COMBINED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss)
|
|
$
|
33
|
|
|
$
|
(1
|
)
|
|
$
|
40
|
|
|
$
|
4
|
|
|
Other Comprehensive Income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) on derivatives, net of income taxes of $13,
$3, $15 and $5
|
|
18
|
|
|
(5
|
)
|
|
19
|
|
|
(7
|
)
|
|
Other comprehensive income/(loss)
|
|
18
|
|
|
(5
|
)
|
|
19
|
|
|
(7
|
)
|
|
Comprehensive Income/(Loss)
|
|
51
|
|
|
(6
|
)
|
|
59
|
|
|
(3
|
)
|
|
|
See accompanying notes to combined financial statements.
|
|
|
NRG YIELD
COMBINED BALANCE SHEETS
|
|
|
|
June 30, 2013
|
|
December 31, 2012
|
|
(In millions, except shares)
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
17
|
|
|
$
|
22
|
|
|
Restricted cash
|
|
67
|
|
|
20
|
|
|
Accounts receivable, net — trade
|
|
37
|
|
|
22
|
|
|
Due from NRG and subsidiaries
|
|
8
|
|
|
—
|
|
|
Inventory
|
|
9
|
|
|
5
|
|
|
Notes receivable — external
|
|
10
|
|
|
9
|
|
|
Renewable energy grant receivable
|
|
101
|
|
|
—
|
|
|
Deferred income taxes
|
|
10
|
|
|
1
|
|
|
Prepayments and other current assets
|
|
9
|
|
|
2
|
|
|
Total current assets
|
|
268
|
|
|
81
|
|
|
Property, plant and equipment, net of accumulated depreciation of
$134 and $115
|
|
1,492
|
|
|
1,598
|
|
|
Other Assets
|
|
|
|
|
|
Equity investments in affiliates
|
|
243
|
|
|
220
|
|
|
Notes receivable — affiliate
|
|
3
|
|
|
6
|
|
|
Notes receivable — external
|
|
7
|
|
|
8
|
|
|
Intangible assets, net of accumulated amortization of $5 and $3
|
|
30
|
|
|
30
|
|
|
Derivative instruments
|
|
6
|
|
|
—
|
|
|
Other non-current assets
|
|
25
|
|
|
21
|
|
|
Total other assets
|
|
314
|
|
|
285
|
|
|
Total Assets
|
|
$
|
2,074
|
|
|
$
|
1,964
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
126
|
|
|
$
|
58
|
|
|
Accounts payable — trade
|
|
15
|
|
|
166
|
|
|
Due to NRG and subsidiaries
|
|
37
|
|
|
26
|
|
|
Derivative instruments
|
|
23
|
|
|
19
|
|
|
Accrued expenses and other current liabilities
|
|
11
|
|
|
16
|
|
|
Total current liabilities
|
|
212
|
|
|
285
|
|
|
Other Liabilities
|
|
|
|
|
|
Long-term debt — external
|
|
1,051
|
|
|
723
|
|
|
Long-term debt — affiliate
|
|
25
|
|
|
26
|
|
|
Deferred income taxes
|
|
33
|
|
|
4
|
|
|
Derivative instruments
|
|
26
|
|
|
61
|
|
|
Other non-current liabilities
|
|
30
|
|
|
25
|
|
|
Total non-current liabilities
|
|
1,165
|
|
|
839
|
|
|
Total Liabilities
|
|
1,377
|
|
|
1,124
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
|
Additional paid-in capital
|
|
639
|
|
|
834
|
|
|
Retained earnings
|
|
63
|
|
|
30
|
|
|
Accumulated other comprehensive loss
|
|
(5
|
)
|
|
(24
|
)
|
|
Total Stockholders’ Equity
|
|
697
|
|
|
840
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
2,074
|
|
|
$
|
1,964
|
|
|
|
See accompanying notes to combined financial statements.
|
|
|
NRG YIELD
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
2013
|
|
2012
|
|
|
|
(In millions)
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
40
|
|
|
$
|
4
|
|
|
Adjustments to reconcile net income to net cash (used)/provided by
operating activities:
|
|
|
|
|
|
Distributions and equity in earnings of unconsolidated affiliates
|
|
3
|
|
|
3
|
|
|
Depreciation and amortization
|
|
19
|
|
|
12
|
|
|
Amortization of financing costs and debt discount/premiums
|
|
1
|
|
|
(1)
|
|
|
Amortization of intangibles and out-of-market contracts
|
|
1
|
|
|
1
|
|
|
Changes in deferred income taxes
|
|
5
|
|
|
2
|
|
|
Changes in derivative instruments
|
|
(10
|
)
|
|
11
|
|
|
Changes in other working capital
|
|
(70
|
)
|
|
26
|
|
|
Net Cash Used by Operating Activities
|
|
(11
|
)
|
|
58
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
Capital expenditures
|
|
(182
|
)
|
|
(156
|
)
|
|
(Increase)/decrease in restricted cash, net
|
|
(47
|
)
|
|
1
|
|
|
Decrease/(increase) in notes receivable
|
|
3
|
|
|
(12
|
)
|
|
Proceeds from renewable energy grants
|
|
24
|
|
|
25
|
|
|
Investments in unconsolidated affiliates
|
|
(19
|
)
|
|
(2
|
)
|
|
Net Cash Used by Investing Activities
|
|
(221
|
)
|
|
(144
|
)
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
Capital contributions from NRG
|
|
150
|
|
|
142
|
|
|
Dividends and returns of capital to NRG
|
|
(312
|
)
|
|
(23
|
)
|
|
Proceeds from issuance of long-term debt — external
|
|
420
|
|
|
10
|
|
|
Payment of debt issuance costs
|
|
(4
|
)
|
|
(8
|
)
|
|
Payments for long-term debt — external
|
|
(25
|
)
|
|
(27
|
)
|
|
Payments for long-term debt — affiliate
|
|
(2
|
)
|
|
(5
|
)
|
|
Net Cash Provided by Financing Activities
|
|
227
|
|
|
89
|
|
|
Net (Decrease)/Increase in Cash and Cash Equivalents
|
|
(5
|
)
|
|
3
|
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
22
|
|
|
24
|
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
17
|
|
|
$
|
27
|
|
|
|
See accompanying notes to combined financial statements.
|
|
|
Appendix Table A-1: Second Quarter 2013 Segment Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/ (loss):
|
|
|
|
(dollars in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
Net Income/(Loss)
|
|
15
|
|
17
|
|
4
|
|
(3)
|
|
33
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
Interest Expense, net
|
|
4
|
|
—
|
|
2
|
|
—
|
|
6
|
|
Depreciation and Amortization Expense
|
|
2
|
|
4
|
|
3
|
|
—
|
|
9
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
5
|
|
7
|
|
—
|
|
—
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
26
|
|
28
|
|
9
|
|
(2)
|
|
61
|
|
|
|
|
|
Appendix Table A-2: Second Quarter 2012 Segment Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/ (loss):
|
|
|
|
(dollars in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
Net Income/(Loss)
|
|
4
|
|
(7)
|
|
3
|
|
(1)
|
|
(1)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
|
Interest Expense, net
|
|
—
|
|
14
|
|
2
|
|
—
|
|
16
|
|
Depreciation and Amortization Expense
|
|
—
|
|
2
|
|
4
|
|
—
|
|
6
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
4
|
|
1
|
|
—
|
|
—
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
8
|
|
10
|
|
9
|
|
(2)
|
|
25
|
|
|
|
|
|
Appendix Table A-3: YTD June 30, 2013 Segment Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/ (loss):
|
|
|
|
(dollars in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
Net Income/(Loss)
|
|
19
|
|
21
|
|
9
|
|
(9)
|
|
40
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
—
|
|
—
|
|
—
|
|
5
|
|
5
|
|
Interest Expense, net
|
|
4
|
|
3
|
|
4
|
|
—
|
|
11
|
|
Depreciation and Amortization Expense
|
|
2
|
|
10
|
|
7
|
|
—
|
|
19
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
9
|
|
11
|
|
—
|
|
—
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
34
|
|
45
|
|
20
|
|
(4)
|
|
95
|
|
|
|
|
|
Appendix Table A-4: YTD June 30, 2012 Segment Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/ (loss):
|
|
|
|
(dollars in millions)
|
|
Conventional
|
|
Renewable
|
|
Thermal
|
|
Corporate
|
|
Total
|
|
Net Income/(Loss)
|
|
8
|
|
(5)
|
|
7
|
|
(6)
|
|
4
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
—
|
|
—
|
|
—
|
|
2
|
|
2
|
|
Interest Expense, net
|
|
—
|
|
16
|
|
4
|
|
—
|
|
20
|
|
Depreciation and Amortization Expense
|
|
—
|
|
4
|
|
8
|
|
—
|
|
12
|
|
Adjustments to reflect Yield’s pro-rata share of Adjusted EBITDA
from Unconsolidated Affiliates
|
|
8
|
|
4
|
|
—
|
|
—
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
16
|
|
19
|
|
19
|
|
(4)
|
|
50
|
|
|
|
|
|
Appendix 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
|
|
(dollars in millions)
|
|
6/30/13
|
|
6/30/12
|
|
6/30/13
|
|
6/30/12
|
|
Adjusted EBITDA
|
|
61
|
|
25
|
|
95
|
|
50
|
|
Pro-rata Adjusted EBITDA from unconsolidated affiliates
|
|
(14)
|
|
(11)
|
|
(26)
|
|
(21)
|
|
Cash distributions from unconsolidated affiliates
|
|
8
|
|
7
|
|
9
|
|
12
|
|
Cash interest paid
|
|
(7)
|
|
—
|
|
(19)
|
|
(9)
|
|
Maintenance Capital expenditures
|
|
(1)
|
|
—
|
|
(4)
|
|
(3)
|
|
Change in other assets
|
|
(5)
|
|
—
|
|
(5)
|
|
—
|
|
Principal amortization of indebtedness
|
|
(10)
|
|
(8)
|
|
(23)
|
|
(15)
|
|
Cash Available for Distribution
|
|
32
|
|
13
|
|
27
|
|
14
|
|
|
|
|
|
Appendix Table A-6: Adjusted EBITDA Guidance Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income:
|
|
|
|
For the Twelve Months Ending
|
|
(dollars in millions)
|
|
12/31/13
|
|
06/30/14
|
|
12/31/14
|
|
06/30/15
|
|
Net Income
|
|
77
|
|
64
|
|
58
|
|
62
|
|
Adjustments to net income to arrive at Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
|
Depreciation and amortization
|
|
51
|
|
65
|
|
66
|
|
67
|
|
Interest expense, net
|
|
45
|
|
68
|
|
66
|
|
64
|
|
Contract amortization
|
|
1
|
|
1
|
|
1
|
|
1
|
|
Income tax expense
|
|
30
|
|
43
|
|
41
|
|
41
|
|
Adjustment to reflect pro-rata Adjusted EBITDA from unconsolidated
affiliates
|
|
36
|
|
42
|
|
53
|
|
52
|
|
Adjusted EBITDA
|
|
240
|
|
282
|
|
285
|
|
286
|
|
|
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’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 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.
Source: NRG Yield, Inc.
NRG Yield, Inc.
Media:
Karen Cleeve, 609-524-4608
or
Michelle
Tsai, 609-524-5324
or
Investors:
Chad Plotkin,
609-524-4526
