May 5, 2023
All currency references in USD unless otherwise indicated
Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR” or the “Corporation”), is pleased to report its financial results for the first quarter 2023 with a conference call to follow May 8, 2023 at 9:00 am EST.
The Corporation’s 50% owned Great Bay Renewables (“GBR”) joint venture recorded $2.0 million in royalty revenue for the quarter ended March 31, 2023. ARR reported proportionate revenue of $1.6 million and a net loss of $0.1 million. This compares to proportionate revenue of $0.6 million and a net loss of $0.2 million in Q1 2022. Total proportionate revenue in Q1 2023 was comprised of $1.0 million in royalty revenue and $0.6 million in interest income. Operating cash flows at GBR were $1.0 million in the first quarter of 2023 as compared to $0.6 million in Q1, 2022.
GBR’s royalty portfolio increased relative to the comparable period in 2022 from the additions of each of the Titan Solar, Young Wind, Appaloosa Run and Hansford County Wind projects, which were either acquired or reached operational status in the second half of 2022. Offsetting some of the production volume based growth were impacts from lower merchant pricing during the quarter that are largely a function of lower natural gas prices as compared to the prior year comparable period and mild winter weather.
The GBR Joint Venture continues to progress several new royalty investment opportunities spanning the full spectrum of development to production stage assets while several of its existing development stage royalty assets continue to advance towards construction and operations.
As of March 31, 2023, the Corporation held cash of $48.5 million and has 2023 expected commitments towards existing GBR investment agreements of approximately $10.0 million.
Commenting on the quarter, Frank Getman, CEO of GBR, said “Our royalty portfolio revenue and cash flow profile is benefitting from the addition of operational stage royalties while we are experiencing an increase in the number of potential investment opportunities we are seeing. This reflects strong industry tailwinds in the US that are related to supportive policies while at the same time competing equity and debt capital sources have tightened recently.”
Brian Dalton, CEO of ARR added that “The GBR joint venture continues to outpace our portfolio and production growth expectations as adoption of the royalty based funding model gains traction and appeal within the US renewable energy sector. We look forward to playing an increased role in supporting the energy transition and to adding further diversity and scale to the portfolio on behalf of shareholders.”
Non-GAAP Financial Measures
1. Management uses the following non-GAAP financial measures: proportionate royalty and other revenue (“proportionate revenue”) and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA).
2. 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 Monday, May 8, 2023 at 9:00 am EST to provide an update and to offer an open Q&A session for analysts and investors. Access details are as follows:
DATE Monday, May 8, 2023 at 9:00 am EST
EVENT ARR Q1 2023 Financial Results, ID 10413570
DIAL IN +1 888 396 8049 OR +1 416 764 8646
WEBCAST ARR Q1 2023
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 currently has 10 renewable energy royalties representing 2,068 MW of renewable power on operating projects, and an additional approximately 6.0 GW on projects in the construction and development phases, across several regional power pools in the U.S. The Corporation also expects future royalties from GBR’s investments in Bluestar Energy Capital and Hodson Energy. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
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.
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