On November 13, 2023, Altus Power Inc (AMPS, Financial) released its 8-K filing, detailing a robust financial performance for the third quarter of 2023. The company, a leader in commercial-scale clean electric power, has reported significant year-over-year growth in revenue, net income, and adjusted EBITDA.
Financial Performance Overview
Altus Power Inc (AMPS, Financial) experienced a notable increase in operating revenues, which rose to $45.1 million in Q3 2023—a 48% jump from the $30.4 million reported in the same quarter of the previous year. This growth is primarily attributed to the company's successful completion of construction and acquisition of additional solar energy facilities over the past twelve months.
The company's GAAP net income for the quarter was $6.8 million, a significant turnaround from the net loss of $96.6 million reported in Q3 2022. The improvement was largely due to changes in the non-cash remeasurement of alignment shares.
Adjusted EBITDA, a non-GAAP financial measure, reached $29.1 million, marking a 50% increase from the $19.4 million in Q3 2022. The adjusted EBITDA margin remained stable at 64%, reflecting the company's ability to maintain profitability margins while expanding its operations.
Strategic Business Highlights
Altus Power Inc (AMPS, Financial) has reaffirmed its 2023 adjusted EBITDA guidance, projecting it to be in the range of $97-103 million, which would represent approximately 70% growth over 2022. The company's adjusted EBITDA margin is expected to remain in the mid-to-high fifty percent range.
In a strategic move to bolster its market presence, Altus Power executed an agreement to acquire 121 MW of solar assets for $120.4 million, significantly expanding its footprint in North and South Carolina. The company is also on track to complete the construction of approximately 75 MW of new assets by the end of 2023.
Altus Power unveiled Altus IQ, an industry-first AI-powered comprehensive carbon accounting platform for businesses, highlighting its commitment to innovation and sustainability. The company's total installed portfolio reached approximately 721 MW by the end of the quarter, with trailing twelve-month generation surpassing 730,000 megawatt-hours, avoiding over 517,000 metric tons of CO2 equivalent on behalf of its clients.
Management's Perspective
Co-CEOs Gregg Felton and Lars Norell expressed confidence in the company's trajectory despite challenging market conditions.
Despite challenging market conditions that are affecting large portions of our industry, Altus Power continues to deliver record growth in our adjusted EBITDA and operating cash flows, as demonstrated by our third quarter results,"said Felton. Norell added,
We continue to drive construction on many assets towards and across the finish line in multiple states and are pleased to see growing engagements with our CBRE and channel-partner sourced enterprise clients move through development and into construction."
Financial Statements Highlights
The condensed consolidated statements of operations reveal that the cost of operations, general and administrative expenses, and depreciation, amortization, and accretion expenses have all increased in line with the company's growth. Despite these increases, the operating income improved slightly to $10.8 million for the quarter.
The balance sheet shows a healthy financial position with total assets of $1.78 billion as of September 30, 2023, compared to $1.37 billion at the end of 2022. The company's cash and cash equivalents stood at $68.2 million, with a total equity of $503.1 million.
Altus Power Inc (AMPS, Financial)'s cash flow statement indicates a strong operational cash flow, which has facilitated significant investments in capital expenditures and acquisitions, positioning the company for continued expansion and growth.
Overall, Altus Power Inc (AMPS, Financial)'s third-quarter results reflect a company that is successfully navigating a complex market environment, achieving substantial growth, and laying the groundwork for future expansion. For detailed financial tables and further information, readers are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from Altus Power Inc for further details.
