Company reports increases in revenue and clean power production year over year; adds industry veterans to Greenbacker Capital Management
Greenbacker accomplished a number of key objectives:
- Placed 22 new projects into service, representing an additional 105 MW of revenue-generating capacity and marking a 7% year-over-year increase in its operating fleet.
- Generated operating revenue of $55.4 million, a 13% year-over-year increase, driven by significant power production increases from the Company’s operating assets, which produced 797,000 MWh in the quarter.
- Greenbacker Capital Management (“GCM”), Greenbacker’s investment management segment, increased revenue 72% year over year; added two distribution and capital raising professionals.
Looking ahead, Greenbacker expects to:
- Increase its operating fleet significantly over the next four years by completing the development and construction of its pre-operating assets, supporting the continued growth of long-term, predictable revenue and cash flow.
- Continue to deliver on sustainability goals, abating millions of metric tons of carbon emissions, saving billions of gallons of water, and supporting thousands of green jobs.
NEW YORK, NY, November 25, 2024 — Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer (“IPP”) and energy transition-focused investment manager, has announced financial results1 for the third quarter of 2024, including year-over-year increases in operating capacity,2 clean energy generation, and revenue.
Greenbacker continued to execute on project build-out, growing operating fleet by 7% year-over-year with 105 MW of new revenue-generating assets
Through the quarter, Greenbacker continued to advance one of its core objectives: building out the pre-operating projects under its control into fully constructed, revenue-generating assets. As of September 30, 2024, GREC’s operating fleet had expanded to over 1.6 gigawatts (“GW”) of clean energy assets, representing a 7% year-over-year increase and an additional 105 megawatts (“MW”) of operating capacity.
This accomplishment highlights Greenbacker’s execution of its strategy to expand its fleet of clean energy assets, each of which is actively contributing to revenue growth and cash flow through the sale of clean, sustainably-produced electricity.
Greenbacker placed 22 new solar assets into service, driving significant year-over-year production increase for solar fleet; wind repowers, all fully operational since early 2024, continued to contribute to substantial wind fleet production increase
During the third quarter, the Company’s solar and wind energy assets saw significant year-over-year production increases of 15% and 39%, respectively.
Greenbacker celebrated placing nearly two dozen solar assets into service in the year-over-year period—including its 6.5 MW South Street solar project—fueling the solar fleet’s production increases and resulting revenue growth.
GREC’s milestone repowers drove the wind fleet’s year-over-year increases in revenue and production. Three wind energy assets were strategically taken offline during portions of the third quarter last year to retrofit with updated, US-made components—one of the clean energy industry’s first deals to utilize the 10% domestic content bonus created by the Inflation Reduction Act. All three had returned to full operation by late 2023 and early 2024, and continued to produce additional power with new, more efficient turbines through the end of the third quarter.
Along with increasing power production and extending the assets’ contracts to sell electricity, the repowers are expected to significantly increase Greenbacker’s annual operating revenue for the remaining decades of their estimated useful life.3
New operational solar asset celebrated with ribbon cutting
Greenbacker expanded its investment management segment with hire of two seasoned professionals
Greenbacker recently expanded the distribution and capital raising capabilities of its investment management segment, Greenbacker Capital Management (“GCM”), adding two industry veterans to its business development team: Adam Evans CAIA, CIMA and John Hennessey.
Evans came to GCM with 20 years of experience distributing financial services products to institutional and retail investors, which is complemented by Hennessey’s 15 years of expertise distributing investment strategies to the registered investment advisor (“RIA”), family office, and institutional channels.
In their roles at GCM, they oversee the distribution of Company strategies across all channels, respectively focused on the Central and Southeastern US, broadening Greenbacker’s ability to meet rising investor demand for energy transition investments.
Greenbacker’s investment management business increased revenue 72% year-over-year, generating $4.9 million in the quarter
GCM generated $4.9 million of revenue in the third quarter, representing a year-over-year increase of 72%, or an additional $2.0 million of revenue, driven by an increase in fee-earning AUM.
As of quarter end, Greenbacker’s fee-earning AUM4 was $753 million. The Company’s Aggregate AUM,5 which includes the assets managed for Greenbacker Renewable Energy Company, for which GCM does not receive management fees, was approximately $3.7 billion.
As of September 30, 2024, GCM served as the SEC-registered investment advisor to four energy transition-focused strategies.
Revenue-generating operating capacity expected to increase significantly, as Company builds out its remaining pre-operating assets over next four years
By the end of 2028, as Greenbacker continues to advance its development and construction plans, it anticipates a substantial increase in its operating fleet capacity. This progress is expected to drive long-term, stable growth in revenues, cash flows, and Adjusted EBITDA as the Company moves additional assets into operation, producing and selling clean electricity.6
Total operating revenue of $55 million in the third quarter represented a 13% year-over-year increase, driven by continued successful fleet build out
Greenbacker’s increased power generation capacity contributed to its total operating revenue of $55.4 million in the quarter—a 13% year-over-year increase that amounted to an additional $6.2 million of operating revenue.
Revenue from the sale of clean energy within Greenbacker’s IPP segment totaled $48.4 million, of which $41.4 million, or approximately 86%, came from the Company’s long-term power purchase agreements (“PPAs”).
For the third quarter, Funds From Operations (“FFO”) was $(11.2) million, Adjusted EBTIDA was $2.1 million, and the net loss attributable to Greenbacker was $(46.4) million, representing year-over-year changes of (371)%, (80)%, and 23%, respectively. These results were driven primarily by a cost related to the termination of a procurement contract (approximately $16 million), as well as by depreciation, amortization, and impairment charges in the period. Greenbacker terminated the contract after determining it had become less favorable relative to market.
The Company has secured a more favorable replacement contract that provides both reduced exposure to tariff risk and significant cost savings, which the Company expects to outweigh the cost of terminating the previous contract.
| Select Financial Information for the Three Months Ended September 30 (in millions) | Third Quarter 2024 | Third Quarter 2023 | YoY Change (total) | YoY Change (%) |
| Total net revenue | $ 52.0 | $ 45.1 | $ 6.9 | 15% |
| Total operating revenue* | $ 55.4 | $ 49.2 | $ 6.2 | 13% |
| Net loss attributable to Greenbacker | $ (46.4) | $ (60.5) | $ 14.1 | 23% |
| Adjusted EBITDA† | $ 2.1 | $ 10.1 | $ (8.1) | (80)% |
| FFO† | $ (11.2) | $ (2.4) | $ (8.8) | (371)% |
*Total operating revenue excludes non-cash contract amortization, net.
†See “Non-GAAP Financial Measures” for additional discussion. Adjusted EBITDA and FFO are unaudited.
The revenue increases were primarily driven by increased clean power production from Greenbacker’s operating solar and wind fleets, which generated nearly 800,000 megawatt-hours (“MWh”) of combined total power in the quarter, representing a year-over-year production increase of 21%.
| GREC Operating Fleet | Third Quarter 2024 | Third Quarter 2023 | YoY Increase (total) | YoY Increase (%) |
| Clean power produced by solar assets (MWh) | 555,386 | 483,643 | 71,743 | 15% |
| PPA revenue generated by solar assets (millions) | $ 28.7 | $ 24.1 | $ 4.5 | 19% |
| Clean power produced by wind assets (MWh) | 241,533 | 173,682 | 67,851 | 39% |
| PPA revenue generated by wind assets (millions) | $ 12.7 | $ 9.8 | $ 2.9 | 29% |
| Total clean power generated by wind and solar assets (MWh) | 796,919 | 657,325 | 139,594 | 21% |
| Total PPA operating revenue generated by wind and solar assets (millions) | $ 41.4 | $ 35.8* | $ 5.6 | 16% |
Some figures may not add to stated totals due to rounding.
Company’s investments abate carbon emissions, conserve water, and support green jobs
In addition to executing on significant year-over-year increases in revenue, power production, and operating fleet capacity, GREC also continued to deliver on its sustainability goals.
As of September 30, 2024, Greenbacker’s clean energy assets had cumulatively produced over 10 million MWh of clean power since January 2016, abating more than 7 million metric tons of carbon7 and saving over 7 billion gallons of water.8 Greenbacker’s fleet of operating and pre-operating projects currently support, or are expected to support, thousands of green jobs.9
Additional information regarding the Company’s impact can also be found in Greenbacker’s latest impact report.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.
Non-GAAP Financial Measures
In addition to evaluating the Company’s performance on a U.S. GAAP basis, the Company now utilizes certain non-GAAP financial measures to analyze the operating performance of our segments as well as our consolidated business. Each of these measures should not be considered in isolation from or as superior to or as a substitute for other financial measures determined in accordance with U.S. GAAP, such as net income (loss) or operating income (loss). The Company uses these non-GAAP financial measures to supplement its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its operations.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business.
Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculations of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Funds From Operations
FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business. FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment.
The Company believes that the analysis and presentation of FFO will enhance our investor’s understanding of the ongoing performance of our operating business. The Company considers FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long term.
FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.
General Disclosure
This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.
Non-GAAP Reconciliations
Adjusted EBITDA and FFO
The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and FFO:
The Company defines Adjusted EBITDA as net income (loss) before: (i) interest expense; (ii) income taxes; (iii) depreciation expense; (iv) amortization expense (including contract amortization); (v) accretion; (vi) impairment of long-lived assets; (vii) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (viii) unrealized gains and losses on financial instruments; (ix) other income (loss); and (x) foreign currency gain (loss). Additionally, the Company further adjusts for the following items described below:
- Share-based compensation is excluded from Adjusted EBITDA as it is different from other forms of compensation, as it is a non-cash expense and is highly variable. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time.
- The change in fair value of contingent consideration, which is related to Greenbacker’s acquisition of GCM and certain other affiliated companies, is excluded from Adjusted EBITDA, if any such change occurs during the period. The non-cash, mark-to-market adjustments are based on the expected achievement of revenue targets that are difficult to forecast and can be variable, making comparisons across historical and future quarters difficult to evaluate.
- Other costs that are not consistently occurring, not reflective of expected future operating expense, and provide no insight into the fundamentals of current or past operations of our business are excluded from Adjusted EBITDA. This includes costs such as professional services and legal fees, some of which were incurred as part of the transition to non-investment company accounting, and other non-recurring costs unrelated to the ongoing operations of the Company.
FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment. The Company excludes these distributions as the underlying source of distribution (collection of a loan) is not recorded within Adjusted EBITDA and is therefore not a component of our earnings from operations.
The Company uses Segment Adjusted EBITDA to evaluate the financial performance of and allocate resources among our operating segments. Segment Adjusted EBITDA is determined for our segments consistent with the adjustments noted above but further excludes unallocated corporate expenses as these items are centrally controlled and are not directly attributable to any reportable segment.
The following table reconciles total Segment Adjusted EBITDA to Net loss attributable to Greenbacker Renewable Energy Company LLC:
About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides investment management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its investment management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit https://greenbackercapital.com.
About Greenbacker Capital Management
Greenbacker Capital Management LLC is an SEC registered investment adviser that provides advisory and oversight services related to project development, acquisition, and operations in the renewable energy, energy efficiency, and sustainability industries. For more information, please visit www.greenbackercapital.com.
1 Past performance is not indicative of future results.
2 Data as of September 30, 2024. Total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”). The financial and portfolio metrics set forth herein are unaudited and subject to change.
3 Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release.
4 Fee-earning AUM represents the asset base upon which management fee revenue is earned from GCM’s managed funds.
5 Aggregate AUM includes GREC and GCM’s managed funds. AUM represents the underlying fair value of investments, determined generally in accordance with ASC 820, cash and cash equivalents and project level debt. These figures are unaudited and subject to change.
6 Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release, as well as Greenbacker’s recent SEC filings and shareholder communication for more information regarding Key Factors Impacting Our Operating Results and Financial Condition, which include a number of factors that present significant opportunities for Greenbacker but also pose risks and challenges.
7 Data is as of September 30, 2024. When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO2 marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions.
8 Data is as of September 30, 2024. Water saved by Greenbacker’s clean energy projects is compared to the amount of water needed to produce the same amount of power by burning coal. Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.
9 Data is as of September 30, 2024. Green jobs calculated using The National Renewable Energy Laboratory (NREL) State Clean Energy Employment Projection Support, nrel.gov.
