Form 8-K Pattern Energy Group For: May 09

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May 9, 2016 6:17 AM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 9, 2016
  
PATTERN ENERGY GROUP INC.
(Exact name of registrant as specified in its charter)

Delaware
001-36087
90-0893251
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification Number)
   
Pier 1, Bay 3
San Francisco, CA 94111
(Address and zip code of principal executive offices)
(415) 283-4000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 
 




Item 2.02. Results of Operations and Financial Condition.
On May 9, 2016, we issued a press release announcing our financial results for the first quarter ended March 31, 2016. A copy of our press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This information is furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
Our press release, included herein, makes reference to non-U.S. GAAP financial measures, which management believes are useful for investors by offering the ability to better evaluate operating performance and to better understand how management evaluates the business. These non-U.S. GAAP financial measures are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by U.S. GAAP. Descriptions of the non-U.S. GAAP financial measures are discussed below.
We define cash available for distribution as net cash provided by operating activities as adjusted for certain other cash flow items that we associate with our operations. Cash available for distribution represents cash provided by operating activities as adjusted to (i) add or subtract changes in operating assets and liabilities, (ii) subtract net deposits into restricted cash accounts, which are required pursuant to the cash reserve requirements of financing agreements, to the extent they are paid from operating cash flows during a period, (iii) subtract cash distributions paid to noncontrolling interests, (iv) subtract scheduled project-level debt repayments in accordance with the related loan amortization schedule, to the extent they are paid from operating cash flows during a period, (v) subtract non-expansionary capital expenditures, to the extent they are paid from operating cash flows during a period, (vi) add cash distributions received from unconsolidated investments, to the extent such distributions were derived from operating cash flows and (vii) add or subtract other items as necessary to present the cash flows we deem representative of our core business operations.
We disclose cash available for distribution because management recognizes that it will be used as a supplemental measure by investors and analysts to evaluate our liquidity. However, cash available for distribution has limitations as an analytical tool because it excludes depreciation, amortization and accretion, does not capture the level of capital expenditures necessary to maintain the operating performance of our projects, is not reduced for principal payments on our project indebtedness except to the extent they are paid from operating cash flows during a period, and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations. Cash available for distribution is a non-U.S. GAAP measure and should not be considered an alternative to net cash provided by operating activities or any other liquidity measure determined in accordance with U.S. GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculation of cash available for distribution is not necessarily comparable to cash available for distribution as calculated by other companies.
We define Adjusted EBITDA as net loss before net interest expense, income taxes, and depreciation, amortization and accretion, including our proportionate share of net interest expense, income taxes, and depreciation, amortization and accretion of unconsolidated investments. Adjusted EBITDA also excludes the effect of certain mark-to-market adjustments and infrequent items not related to normal or ongoing operations, such as early payment of debt, realized derivative gain or loss from refinancing transactions, gain or loss related to acquisitions or divestitures, and adjustments from unconsolidated investments. In calculating Adjusted EBITDA, we exclude mark-to-market adjustments to the value of our derivatives because we believe that it is useful for investors to understand, as a supplement to net loss and other traditional measures of operating results, the results of our operations without regard to periodic, and sometimes material, fluctuations in the market value of such assets or liabilities.
During the three months ended March 31, 2016, we suspended the equity method of accounting for our investment at South Kent as our investment was reduced to zero. Our definition of Adjusted EBITDA has accordingly been modified in the current period to include adjustments from unconsolidated investments.
We disclose Adjusted EBITDA, which is a non-U.S. GAAP measure, because management believes this metric assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that our management believes are not indicative of our core operating performance. We use Adjusted EBITDA to evaluate our operating performance. You should not consider Adjusted EBITDA as an alternative to net loss, determined in accordance with U.S. GAAP.




Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:
•
Adjusted EBITDA
•
does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
•
does not reflect changes in, or cash requirements for, our working capital needs;
•
does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;
•
does not reflect our income tax expense or the cash requirement to pay our taxes; and
•
does not reflect the effect of certain mark-to-market adjustments and non-recurring items;
•
although depreciation, amortization and accretion are non-cash charges, the assets being depreciated, amortized and accreted will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
•
other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit
Number
Description
99.1
Press Release issued by Pattern Energy Group Inc. on May 9, 2016.




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Pattern Energy Group Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 9, 2016
 
 
 
 
 
 
PATTERN ENERGY GROUP INC.
 
 
 
 
 
 
By:
/s/ Michael J. Lyon
 
 
 
Name: Michael J. Lyon
 
 
 
Title:   Chief Financial Officer
 
 
 
(Principal Financial Officer)
 




Exhibit 99.1

Pattern Energy Reports First Quarter 2016 Financial Results
- $41.0 million in Q1 2016 CAFD on track for FY 2016 target -
- Declares increased dividend of $0.39 per Class A common share for Q2 2016 -
SAN FRANCISCO, California, May 9, 2016 - Pattern Energy Group Inc. (the “Company” or “Pattern Energy”) (NASDAQ: PEGI) (TSX: PEG) today announced its financial results for the 2016 first quarter.
Highlights
(Comparisons made between fiscal Q1 2016 and fiscal Q1 2015 results, unless otherwise noted)
•
Cash available for distribution (CAFD) of $41.0 million, up 340%, on track to meet full year guidance
•
Adjusted EBITDA of $78.1 million, up 67%
•
Proportional GWh sold of 1,801 GWh, up 92%
•
Revenue of $87.6 million, up 35%
•
Declared a second quarter dividend of $0.39 per Class A common share or $1.56 on an annualized basis, subsequent to the end of the period, representing a 2.4% increase over the previous quarter’s dividend
•
All 16 existing assets, representing 2,282 MW of owned capacity, are operational with no new capital required to be raised for existing ownership interest levels
“Our fleet continues to operate at a high turbine availability across all 16 operating projects. Delivering $41.0 million in CAFD is an excellent result for the first quarter. It keeps us on track to achieve our 2016 CAFD target and enabled us to increase our dividend for the ninth straight quarter,” said Mike Garland, President and CEO of Pattern Energy. “Our proven, successful relationship with Pattern Development continues to provide us with a strong growth outlook including 1.3 GW of identified ROFO assets and a growing pipeline of development stage assets. Pattern Development has also provided us more flexibility when we drop down future projects. Their development pipeline includes two solar projects that have commenced operations in Japan since March.”
Financial Results
Pattern Energy sold 1,801,034 MWh of electricity on a proportional basis in the first quarter of 2016 compared to 935,981 MWh sold in the same period last year. The increase was primarily attributable to projects which were acquired in May 2015 or became commercially operable since the third quarter of 2015. Specifically, it includes an increase in volume of 763,424 MWh from controlling interest in consolidated MWh; and an increase in volume of 101,629 MWh from unconsolidated investments due primarily to the acquisition of K2 in June 2015. As expected, El Niño conditions continued into early 2016 which resulted in lower wind speeds and lower production than the Company's long-term average forecast.
Adjusted EBITDA was $78.1 million for the first quarter of 2016 compared to $46.7 million for the same period last prior year, an increase of $31.3 million, or approximately 67.1%. The increase in Adjusted EBITDA for the first quarter as compared to the same period in the prior year was primarily attributable to projects which commenced commercial operations or were acquired since May 2015. Reconciliations of adjusted EBITDA to net loss determined in accordance with GAAP for the quarterly periods are shown below.
Net loss was $29.0 million in the first quarter of 2016, compared to $22.1 million in the same period last year. The change was primarily attributable to projects which were acquired in May 2015 or became commercially operable since the third quarter of 2015. Also contributing to the change were increases in other expense items related to interest expense and losses on undesignated

1


derivatives, net. These changes were partially offset by increases in earnings (losses) in unconsolidated investments, net primarily due to the acquisition of K2 in 2015.
Cash available for distribution was $41.0 million for the first quarter of 2016 as compared to $9.3 million for the same period in the prior year. This $31.7 million increase in cash available for distribution was due to additional revenues of $31.3 million (excluding unrealized loss on energy derivative and amortization of power purchase agreements) primarily from projects which commenced commercial operations or were acquired during 2015. Pattern Energy also received an increase of $14.1 million in cash distributions from its unconsolidated investments when compared to the same period in the prior year due to full operation at each of its unconsolidated investments in 2016. These increases were partially offset by increases in project expenses of $7.0 million and operating expenses of $3.4 million, primarily from projects which commenced commercial operations or were acquired during 2015, as well as, increased interest payments of $3.1 million and distributions to noncontrolling interests of $3.2 million. Reconciliations of cash available for distribution to net cash provided by operating activities determined in accordance with GAAP for the quarterly periods are shown below.
2016 Financial Guidance
Pattern Energy reaffirms its targeted annual cash available for distribution for 2016 in a range of $125 million to $145 million, representing an increase of 46% at the midpoint of the range, compared to cash available for distribution in 2015.(1) 
Quarterly Dividend
Pattern Energy declared an increased dividend for the second quarter 2016, payable on July 29, 2016, to holders of record on June 30, 2016 in the amount of $0.39 per Class A common share, which represents $1.56 on an annualized basis. This is a 2.4% increase from the first quarter 2016 dividend of $0.381.
Acquisition Pipeline
Pattern Energy has the Right of First Offer (ROFO) on a pipeline of acquisition opportunities from Pattern Development. The identified ROFO list stands at 1,298 MW of total owned capacity. This list of identified ROFO projects represents a portion of Pattern Development’s 5,900 MW pipeline of development projects, all of which are subject to Pattern Energy’s ROFO.
Since its IPO, Pattern Energy has purchased 832 MW from Pattern Development and in aggregate grown the identified ROFO list from 746 MW to a total of 2,130 MW. The table below sets forth the current list of identified ROFO projects:
Asset
 
Location
 
Owned MW
 
Status
Armow
 
Ontario
 
90
 
Operational
Kanagi Solar
 
Japan
 
6
 
Operational
Futtsu Solar
 
Japan
 
19
 
Operational
Meikle
 
British Columbia
 
180
 
In construction
Conejo Solar
 
Chile
 
84
 
In construction
Belle River
 
Ontario
 
50
 
Securing final permits
Broadview projects
 
New Mexico
 
259
 
Late stage development
Grady
 
New Mexico
 
176
 
Late stage development
Henvey Inlet
 
Ontario
 
150
 
Late stage development
North Kent
 
Ontario
 
43
 
Late stage development
Mont Sainte-Marguerite
 
Québec
 
147
 
Late stage development
Ohorayama
 
Japan
 
31
 
Late stage development
Tsugaru
 
Japan
 
63
 
Late stage development
Total
 
 
 
1,298
 
 
(1) The forward looking measure of cash available for distribution for 2016 is a non-GAAP measure that cannot be reconciled to net cash provided by operating activities as the most directly comparable GAAP financial measure without unreasonable effort. A description of the adjustments to determine CAFD can be found within Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations-Key Metrics, of Pattern Energy's 2016 Quarterly Report on Form 10-Q for the period ended March 31, 2016.

2


Cash Available for Distribution and Adjusted EBITDA Non-GAAP Reconciliations
The following tables reconcile non-GAAP net cash provided by operating activities to cash available for distribution and net loss to adjusted EBITDA, respectively, for the periods presented (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Net cash provided by operating activities
$
14,721

 
$
16,239

Changes in operating assets and liabilities
18,967

 
(4,657
)
Network upgrade reimbursement
—

 
618

Release of restricted cash to fund project and general and administrative costs
590

 
—

Operations and maintenance capital expenditures
(230
)
 
(38
)
Transaction costs for acquisitions
13

 
420

Distributions from unconsolidated investments
19,814

 
6,076

Other
—

 
(144
)
Less:
 
 
 
Distributions to noncontrolling interests
(3,917
)
 
(748
)
Principal payments paid from operating cash flows
(8,943
)
 
(8,435
)
Cash available for distribution
$
41,015

 
$
9,331

 
Three Months Ended March 31,
 
2016
 
2015
Net loss
$
(29,048
)
 
$
(22,059
)
Plus:
 
 
 
Interest expense, net of interest income
20,315

 
17,699

Tax provision (benefit)
1,298

 
(746
)
Depreciation, amortization and accretion
45,384

 
29,056

EBITDA
$
37,949

 
$
23,950

Unrealized loss (gain) on energy derivative (1)
4,825

 
(2,972
)
Loss on undesignated derivatives, net
13,631

 
3,400

Net (gain) loss on transactions
(33
)
 
1,284

Adjustments from unconsolidated investments
(1,712
)
 
—

Plus, proportionate share from unconsolidated investments:
 
 
 
Interest expense, net of interest income
7,219

 
5,438

Depreciation, amortization and accretion
6,293

 
4,509

Loss on undesignated derivatives, net
$
9,916

 
$
11,134

Adjusted EBITDA
$
78,088

 
$
46,743

 (1)     Amount is included in electricity sales on the consolidated statements of operations.
Conference Call and Webcast
Pattern Energy will host a conference call and webcast, complete with slide presentation, to discuss these results at 10:30 a.m. Eastern Time on Monday, May 9, 2016. Mike Garland, President and CEO, and Mike Lyon, CFO, will co-chair the call. Participants should call (888) 231-8191 or (647) 427-7450 and ask an operator for the Pattern Energy earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (855) 859-2056 or (416) 849-0833 and enter access code 95851150. The replay recording will be available until 11:59 p.m. Eastern Time, May 23, 2016.
A live webcast of the conference call will be also available on the events page in the investor section of Pattern’s website at www.patternenergy.com. An archived webcast will be available for one year.
About Pattern Energy
Pattern Energy Group Inc. is an independent power company listed on The NASDAQ Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 16 operating wind power facilities with a total owned interest of 2,282 MW in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy’s wind power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws, including statements regarding the ability to not require new capital to be raised for existing ownership levels, the ability to achieve the 2016 CAFD target, and the ability for the relationship with Pattern Development to provide the Company with a strong growth outlook and flexibility when the Company drops down projects. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company's annual report on Form 10-K and any quarterly reports on Form 10-Q. The risk factors and other factors noted therein could cause actual events or the Company's actual results to differ materially from those contained in any forward-looking statement.

# # #

Contacts:
Media Relations
Matt Dallas
917-363-1333
 
Investor Relations
Ross Marshall
416-526-1563
 

3


Pattern Energy Group Inc.
Consolidated Balance Sheets
(In thousands of U.S. Dollars, except share data)
(Unaudited)
 
March 31,
 
December 31,
 
2016
 
2015
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
90,624

 
$
94,808

Restricted cash
10,282

 
14,609

Funds deposited by counterparty
61,177

 
—

Trade receivables
42,341

 
45,292

Related party receivable
674

 
734

Reimbursable interconnection costs
—

 
38

Derivative assets, current
22,028

 
24,338

Prepaid expenses
13,173

 
14,498

Other current assets
5,457

 
6,891

Deferred financing costs, current, net of accumulated amortization of $5,775 and $5,192 as of March 31, 2016 and December 31, 2015, respectively
2,156

 
2,121

Total current assets
247,912

 
203,329

Restricted cash
16,835

 
36,875

Property, plant and equipment, net of accumulated depreciation of $455,523 and $409,161 as of March 31, 2016 and December 31, 2015, respectively
3,264,632

 
3,294,620

Unconsolidated investments
99,996

 
116,473

Derivative assets
37,865

 
44,014

Deferred financing costs
4,106

 
4,572

Net deferred tax assets
10,159

 
6,804

Finite-lived intangible assets, net of accumulated amortization of $6,046 and $4,357 as of March 31, 2016 and December 31, 2015, respectively
95,945

 
97,722

Other assets
26,007

 
25,183

Total assets
$
3,803,457

 
$
3,829,592

 

4


Pattern Energy Group Inc.
Consolidated Balance Sheets
(In thousands of U.S. Dollars, except share data)
(Unaudited)
 
March 31,
 
December 31,
 
2016
 
2015
Liabilities and equity
 
 
 
Current liabilities:
 
 
 
Accounts payable and other accrued liabilities
$
19,747

 
$
42,776

Accrued construction costs
4,854

 
23,565

Counterparty deposit liability
61,177

 
—

Related party payable
262

 
1,646

Accrued interest
2,859

 
9,035

Dividends payable
28,869

 
28,022

Derivative liabilities, current
16,364

 
14,343

Revolving credit facility
355,000

 
355,000

Current portion of long-term debt, net of financing costs of $3,677 and $3,671 as of March 31, 2016 and December 31, 2015, respectively
45,551

 
44,144

Other current liabilities
2,340

 
2,156

Total current liabilities
537,023

 
520,687

Long-term debt, net of financing costs of $21,905 and $22,632 as of March 31, 2016 and December 31, 2015, respectively
1,174,833

 
1,174,380

Convertible senior notes, net of financing costs of $4,727 and $5,014 as of March 31, 2016 and December 31, 2015, respectively
198,733

 
197,362

Derivative liabilities
56,154

 
28,659

Net deferred tax liabilities
22,695

 
22,183

Finite-lived intangible liability, net of accumulated amortization of $3,035 and $2,168 as of March 31, 2016 and December 31, 2015, respectively
57,265

 
58,132

Other long-term liabilities
54,891

 
52,427

Total liabilities
2,101,594

 
2,053,830

Commitments and contingencies
 
 
 
Equity:
 
 
 
Class A common stock, $0.01 par value per share: 500,000,000 shares authorized; 74,930,970 and 74,644,141 shares outstanding as of March 31, 2016 and December 31, 2015, respectively
750

 
747

Additional paid-in capital
955,455

 
982,814

Accumulated loss
(100,829
)
 
(77,159
)
Accumulated other comprehensive loss
(85,619
)
 
(73,325
)
Treasury stock, at cost; 66,376 and 65,301 shares of Class A common stock as of March 31, 2016 and December 31, 2015, respectively
(1,596
)
 
(1,577
)
Total equity before noncontrolling interest
768,161

 
831,500

Noncontrolling interest
933,702

 
944,262

Total equity
1,701,863

 
1,775,762

Total liabilities and equity
$
3,803,457

 
$
3,829,592

 
 
 
 


5


Pattern Energy Group Inc.
Consolidated Statements of Operations
(In thousands of U.S. dollars, except per share data)
(Unaudited)
 
Three months ended March 31,
 
2016
 
2015
Revenue:
 
 
 
Electricity sales
$
85,663

 
$
64,125

Related party revenue
1,215

 
803

Other revenue
761

 
(62
)
Total revenue
87,639

 
64,866

Cost of revenue:
 
 
 
Project expense
32,246

 
25,246

Depreciation and accretion
43,411

 
29,056

Total cost of revenue
75,657

 
54,302

Gross profit
11,982

 
10,564

Operating expenses:
 
 
 
General and administrative
9,569

 
6,221

Related party general and administrative
1,897

 
1,808

Total operating expenses
11,466

 
8,029

Operating income
516

 
2,535

Other income (expense):
 
 
 
Interest expense
(21,061
)
 
(17,918
)
Loss on undesignated derivatives, net
(13,631
)
 
(3,400
)
Earnings (losses) in unconsolidated investments, net
3,830

 
(3,082
)
Related party income
1,007

 
668

Net gain (loss) on transactions
33

 
(1,284
)
Other income (expense), net
1,556

 
(324
)
Total other expense
(28,266
)
 
(25,340
)
Net loss before income tax
(27,750
)
 
(22,805
)
Tax provision (benefit)
1,298

 
(746
)
Net loss
(29,048
)
 
(22,059
)
Net loss attributable to noncontrolling interest
(5,378
)
 
(2,160
)
Net loss attributable to Pattern Energy
$
(23,670
)
 
$
(19,899
)
 
 
 
 
Weighted average number of shares:
 
 
 
Class A common stock - Basic and diluted
74,437,998

 
65,892,005

Loss per share
 
 
 
Class A common stock:
 
 
 
Basic and diluted loss per share
$
(0.32
)
 
$
(0.30
)
Dividends declared per Class A common share
$
0.38

 
$
0.34



6


Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
(Unaudited)
 
Three months ended March 31,
 
2016
 
2015
Operating activities
 
 
 
Net loss
$
(29,048
)
 
$
(22,059
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Depreciation and accretion
43,411

 
29,056

Amortization of financing costs
1,746

 
1,743

Amortization of debt discount/premium, net
1,032

 
—

Amortization of power purchase agreements, net
753

 
—

Loss (gain) on derivatives, net
17,757

 
(531
)
Stock-based compensation
1,195

 
815

Deferred taxes
1,143

 
(878
)
(Earnings) losses in unconsolidated investments, net of distributions received
(3,517
)
 
3,082

Other noncash transactions
(784
)
 
354

Changes in operating assets and liabilities:
 
 
 
Funds deposited by counterparty
(61,177
)
 
—

Trade receivables
3,215

 
288

Prepaid expenses
1,360

 
5,089

Other current assets
1,022

 
118

Other assets (non-current)
(236
)
 
(80
)
Accounts payable and other accrued liabilities
(18,671
)
 
(688
)
Counterparty deposit liability
61,177

 
—

Related party receivable/payable
(1,292
)
 
565

Accrued interest
(6,235
)
 
(2,374
)
Other current liabilities
166

 
593

Long-term liabilities
1,704

 
1,146

Net cash provided by operating activities
14,721

 
16,239

Investing activities
 
 
 
Decrease in restricted cash
20,088

 
21,042

Increase in restricted cash
(51
)
 
(5,055
)
Capital expenditures
(24,084
)
 
(63,956
)
Distribution from unconsolidated investments
19,814

 
6,076

Reimbursable interconnection receivable
38

 
623

Other investing activities
(163
)
 
—

Net cash provided by (used in) investing activities
15,642

 
(41,270
)

7


 
Three months ended March 31,
 
2016
 
2015
Financing activities
 
 
 
Proceeds from public offering, net of issuance costs
$
—

 
$
196,923

Repurchase of shares for employee tax withholding
(19
)
 
(281
)
Dividends paid
(27,711
)
 
(15,578
)
Capital distributions - noncontrolling interest
(3,917
)
 
(748
)
Decrease in restricted cash
16,735

 
8,763

Increase in restricted cash
(12,405
)
 
(12,062
)
Refund of deposit for letters of credit
—

 
3,425

Proceeds from revolving credit facility
20,000

 
—

Repayment of revolving credit facility
(20,000
)
 
(50,000
)
Proceeds from construction loans
—

 
47,595

Repayment of long-term debt
(8,943
)
 
(8,435
)
Other financing activities
(124
)
 
(4
)
Net cash (used in) provided by financing activities
(36,384
)
 
169,598

Effect of exchange rate changes on cash and cash equivalents
1,837

 
(2,893
)
Net change in cash and cash equivalents
(4,184
)
 
141,674

Cash and cash equivalents at beginning of period
94,808

 
101,656

Cash and cash equivalents at end of period
$
90,624

 
$
243,330

Supplemental disclosures
 
 
 
Cash payments for income taxes
$
97

 
$
18

Cash payments for interest expense, net of capitalized interest
24,204

 
18,442

Schedule of non-cash activities
 
 
 
Change in fair value of designated interest rate swaps
$
(17,795
)
 
$
(7,266
)
Change in property, plant and equipment
11,599

 
(23,061
)
Amortization of deferred financing costs—included as construction in progress
—

 
2,515



8

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