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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
Entire Document
 



22. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Quarterly results of operations for the year ended December 31, 2018 were as follows:
(In thousands, except per share data)
 
Q11,2
 
Q23,4
 
Q33,4
 
Q43,4,5
Operating revenues, net
 
$
127,547

 
$
179,888

 
$
246,042

 
$
213,093

Operating (loss) income
 
(22,049
)
 
27,299

 
56,666

 
8,063

Interest expense, net
 
53,554

 
50,892

 
72,416

 
72,349

Net loss
 
(76,313
)
 
(27,612
)
 
(19,051
)
 
(30,351
)
Net income (loss) attributable to Class A common stockholders
 
82,796

 
(21,337
)
 
(33,590
)
 
(15,489
)
Weighted average Class A common shares outstanding - basic
 
148,139

 
161,568

 
209,142

 
209,142

Weighted average Class A common shares outstanding - diluted
 
148,166

 
161,568

 
209,142

 
209,142

Net earnings (loss) per weighted average Class A common share - basic and diluted
 
$
0.56

 
$
(0.13
)
 
$
(0.16
)
 
$
(0.07
)
———
(1)
During the first quarter of 2018, the Company recognized an impairment charge of $15.2 million on renewable energy facilities due to the bankruptcy of a significant customer significant to a distributed generation solar project (see Note 5. Renewable Energy Facilities).
(2)
During the first quarter of 2018, the Company recorded a reduction of $151.2 million to the non-controlling interests balance and a corresponding allocation of net loss attributable to non-controlling interests due to the change in the tax rate input in the HLBV methodology used by the Company.  As a result of the reduction of the federal income tax rate from 35% to 21% as specified in the Tax Act, the Company allocated significantly lower amounts to certain non-controlling interests (i.e., tax equity investors) in order to achieve their contracted after-tax rate of return.
(3)
On June 12, 2018 the Company acquired approximately 95.28% of the outstanding shares of Saeta, a Spanish renewable power company with then-1,028 MW of wind and solar facilities (approximately 250 MW of solar and 778 MW of wind) located primarily in Spain. The Company pursued a statutory squeeze out procedure under Spanish law to procure the remaining approximately 4.72% of the shares of Saeta on July 2, 2018 (see Note 4. Acquisitions and Dispositions). Saeta contributed the below to the Company’s results for the year ended December 31, 2018:

(In thousands, except per share data)
 
Q1
 
Q2
 
Q3
 
Q4
Operating revenues, net
 
N/A
 
$24,681
 
$107,903
 
$88,642
Operating income
 
N/A
 
10,055
 
37,212
 
21,824
Interest (income) expense, net
 
N/A
 
(4,114)
 
13,241
 
14,405
Net income
 
N/A
 
11,545
 
21,850
 
4,819
(4)
During the second quarter of 2018, the Company discontinued hedge accounting for a certain long-dated commodity contract as it was no longer considered highly effective in offsetting the cash flows associated with the underlying risk being hedged. The gains (losses) in fair value on this commodity contract were recorded in earnings within operating revenues, net and amounted to $10.8 million, $0.9 million and $(5.3) million for the second, third and fourth quarters of 2018, respectively (see Note 12. Derivatives).
(5)
During the fourth quarter of 2018, the Company revised the accretion period related to its wind projects and determined that these obligations should be accreted to expected future value over the remaining useful life of the corresponding renewable energy facility rather than the terms of the related PPAs. This change in accretion period resulted in a $15.7 million reduction in the Company’s previously reported accretion and depreciation expense by $6.3 million, of which $4.4 million of the accretion and depreciation expense reduction related to amounts previously reported for the years ended December 31, 2017, 2016 and 2015. The quarterly accretion and depreciation expense reduction that relates to each of the first three quarters of 2018 was $0.5 million.

    


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