CorEnergy Releases First Quarter 2015 Results
KANSAS CITY, Mo.--(BUSINESS WIRE)-- CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the quarter ended March 31, 2015.
First Quarter Highlights and Subsequent Events
- Declared a 3.8% increase in the dividend to $0.135 for first quarter, payable on May 29, 2015, consistent with guidance for annualized common stock dividends of no less than $0.54 per share for 2015
- Achieved Adjusted Funds from Operations (AFFO) of $.15 per share, consistent with 2014 pro forma AFFO per share
- Raised $56 million in gross proceeds through Series A Preferred offering in January 2015
- Increased liquidity to approximately $116.6 million available for future investment
- Reiterated CorEnergy’s long-term annual growth target of 3-5% in common stock dividends
“CorEnergy met expectations in the first quarter of 2015, tracking with pro forma results previously reported for the acquisitions completed in 2014. Our revenue model is based on predictable long-term contracts for access to mission-critical energy infrastructure. We believe this model provides our investors with reliable, utility-like dividend predictability in a tax-friendly REIT structure,” said David Schulte, Chief Executive Officer of CorEnergy. “We are introducing the term ‘Contribution Margin’ to refer to Total Lease Revenue, Security Distributions, Financing Revenue and Operating Results as reported in our annual and quarterly MD&A.1 This metric provides added transparency to earnings after direct operating costs and before corporate costs.”
Mr. Schulte continued, “CorEnergy’s strong liquidity today positions us to take advantage of acquisition opportunities in midstream assets as the U.S. energy sector responds to a lower energy price environment. We expect accretive acquisitions to support our dividend growth target for the next several years, while the upside from our contracts should support dividend growth over the longer term.”
Quarterly Performance Summary
We believe our first quarter results are representative of quarterly expectations for the remainder of 2015, consistent with the 2014 pro forma data previously presented, unless we complete additional investments or acquisitions. First quarter 2015 and first quarter 2014 results are not directly comparable, due to CorEnergy’s acquisitions and capital markets activity in 2014 and early 2015.
First quarter 2015 Contribution Margin1 of $11.8 million was consistent with the pro forma results disclosed in the Company’s Form 10-K for 2014. Expenses were also consistent, resulting in first quarter Adjusted Funds from Operations (AFFO) of $7.0 million, $.15 per share, providing coverage of our common stock dividend of $0.135.
| First Quarter Ended March 31, 2015 Financial Summary | ||||||||
| For the Quarter Ended March 31, 2015 | ||||||||
| Total | Per Share | |||||||
| Net Income (attributable to Common Stockholders) | $ | 3,349,128 | $ | 0.07 | ||||
| NAREIT Funds from Operations (NAREIT FFO) | $ | 6,971,163 | $ | 0.15 | ||||
| Funds From Operations (FFO) | $ | 6,500,271 | $ | 0.14 | ||||
| Adjusted Funds From Operations (AFFO) | $ | 6,984,084 | $ | 0.15 | ||||
NAREIT FFO, FFO and AFFO are non-GAAP measures presented in accordance with the guidelines for calculation and reporting issued by the National Association of Real Estate Investment Trusts. NAREIT FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate-related depreciation and amortization (excluding amortization of deferred financing costs or loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. FFO as we have presented it here, and historically, also excludes the impact of transactions related to the Company’s legacy BDC securities holdings. The Company considers FFO an important supplemental measure of operating performance that is frequently used by securities analysts, investors and other interested parties. CorEnergy defines AFFO as FFO plus transaction costs, amortization of debt issuance costs, deferred leasing costs, above-market rent, and certain costs of a nonrecurring nature, less maintenance, capital expenditures (if any), amortization of debt premium and other adjustments as deemed appropriate. Management uses AFFO as a measure of long-term sustainable operational performance. A reconciliation of NAREIT FFO, FFO and AFFO, as presented, to Net income attributable to CorEnergy stockholders is included in the additional financial information attached to this press release.
As of March 31, 2015, CorEnergy had approximately $116.6 million available for future investment. The January 2015 public offering of perpetual Series A Cumulative Redeemable Preferred Stock strengthened CorEnergy’s balance sheet by repaying $32 million of indebtedness under its revolving line of credit and adding to cash. The ratio of indebtedness to total capitalization is well under the long-term target of 25-50%.
Portfolio Update
Among the asset-specific developments in the first quarter:
Pinedale Liquids Gathering System
Under the Pinedale Liquids Gathering System (LGS) lease to a subsidiary of Ultra Petroleum, the 2015 annual adjustment for changes in the Consumer Price Index resulted in an increase in quarterly rent of $85 thousand for the gathering system in Wyoming. The increase took effect in the first quarter.
MoGas Pipeline System
The MoGas Pipeline System, an interstate natural gas pipeline extending from the St. Louis region into central Missouri, produced $3.6 million in revenue in the quarter ended March 31, 2015, the first full quarter since CorEnergy acquired the MoGas system in November 2014.
Portland Terminal Facility
The Portland Terminal Facility in Portland, Oregon, is generating increased base rent from operator Arc Terminals triggered by progress of construction projects announced when CorEnergy acquired the site in January 2014. As of March 31, 2015, CorEnergy had invested approximately $7.8 million of a planned $10 million, increasing the rent to approximately $480 thousand per month.
Omega Pipeline/Mowood
Omega Pipeline's agreement with the Department of Defense ("DOD") to serve the natural gas needs of the US Army's Fort Leonard Wood was set to expire on January 31, 2015, with a competitive bidding process for a new 10-year contract. On January 28, 2015, Omega received a 6-month bridge extension to continue providing natural gas until a new agreement is reached. Omega currently expects, based on statements from DOD and knowledge of the local market, to reach agreement by the end of the second quarter of 2015 for an additional 10-year term.
Salt Water Disposal Assets
First-quarter 2015 revenue was approximately $660 thousand from interest received on financing notes provided in 2014 to Black Bison Water Services, which operates salt water disposal wells in Wyoming, and SWD Enterprises, a subsidiary of Four Wood Energy Partners, which operates a salt water disposal facility in North Dakota.
Subsequent Events
The Eastern Interconnect Project (EIP) was leased to Public Service Company of New Mexico (PNM) through March 31, 2015. As previously announced that lease terminated on April 1, 2015, with the sale of CorEnergy’s 40% interest in the power transmission property for cash of $7.7 million. Payment was received on April 1, 2015.
Due to reduced drilling activity in Black Bison Water Services’ area of operations, Black Bison requested, and the Company has granted, a waiver of certain financial covenants. One of those waivers will remain in place through December 31, 2015. In addition, CorEnergy has not yet received the first amortization payment from Black Bison, which was due March 31, 2015. The Company has no reason to believe the notes receivable with Black Bison are not fully collectible.
Outlook
CorEnergy expects its portfolio of energy infrastructure assets – the Pinedale LGS, MoGas Pipeline, Portland Terminal Facility, Omega Pipeline and salt water disposal assets – to produce stable, recurring revenues in 2015. CorEnergy believes the cash flows from these holdings in 2015 will support annualized dividend payments of no less than $0.54 per share, as well as the Company’s long-term dividend growth target of 3-5% annually.
CorEnergy is pursuing a broadening set of opportunities in the pipeline, which provide the potential to reach $50 to $250 million per project type. There can be no assurance that any of these acquisition opportunities will result in consummated transactions. The Company expects to utilize balance sheet resources, including prudent leverage when available, supplemented with equity issuance if accretive to long-term shareholder value through increased dividends and diversification of assets.
Dividend Policy
A first quarter common stock cash dividend of $0.135 was declared on April 29, 2015, and is payable on May 29, 2015. CorEnergy intends to maintain a quarterly common stock dividend payment cycle of February, May, August and November. Dividend payouts may be affected by cash flow requirements and remain subject to other risks and uncertainties.
For the 7.375% Series A Preferred Stock, the initial cash dividend of $0.635069444 per depositary share was declared on April 29, 2015, and is payable on June 1, 2015 (as May 31, 2015 is not a business day). The preferred stock dividends subsequently are to be paid on or about the last day of August, November, February and May, totaling $1.84375 per depositary share for each full year, or 7.375% of the $25.00 liquidation preference per depositary share.
First Quarter 2015 Earnings Conference Call
CorEnergy will host a conference call Tuesday, May 12, 2015, at 1:00 p.m. Central Time to discuss its financial results. Please dial into the call at 1-877-407-8035 (for international callers, 1-201-689-8035) approximately five to ten minutes prior to the scheduled start time.
The call will also be webcast in a listen-only format, and also for replay afterward, through a link available at corenergy.corridortrust.com.
A replay of the call will be available until 11:59 p.m. on June 12, 2015, by dialing 1-877-660-6853 (for international callers, 1-201-612-7415). The Conference ID # is 13608405.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR), the first publicly listed energy infrastructure Real Estate Investment Trust (REIT), primarily owns assets in the midstream and downstream U.S. energy sectors that perform utility-like functions, such as pipelines, storage terminals, and transmission and distribution assets. Our objective is to provide stockholders with a stable and growing cash dividend, supported by long-term contracted revenue from operators of our assets, primarily under triple-net participating leases. For more information, please visit corenergy.corridortrust.com.
Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although CorEnergy believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in CorEnergy’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, CorEnergy does not assume a duty to update any forward-looking statement. In particular, any distribution paid in the future to our stockholders will depend on the actual performance of CorEnergy, its costs of leverage and other operating expenses and will be subject to the approval of CorEnergy’s Board of Directors and compliance with leverage covenants.
1 Contribution Margin is a non-GAAP measure defined as Total Lease Revenue, Security Distributions, Financing Revenue and Operating Results, as reported in the MD&A section of CorEnergy’s Form 10-Q. Management believes that Lease Revenue, Security Distributions, Financing Revenue and Operating Results provides investors with information that will assist them in analyzing the operating performance of our leased assets, financing notes receivable, other equity securities and operating entities. As it pertains to other equity securities, the Company believes that net distributions received are indicative of the operating performance of the assets. Reconciliations of these results to Adjusted EBITDA Income Attributable to CorEnergy Stockholders and to Income Attributable to Common Stockholders are included in the additional financial information attached to this press release.
|
CorEnergy Infrastructure Trust, Inc. CONSOLIDATED BALANCE SHEETS |
||||||||
| March 31, 2015 | December 31, 2014 | |||||||
| Assets | (Unaudited) | |||||||
| Leased property, net of accumulated depreciation of $22,048,643 and $19,417,025 | $ | 259,676,456 | $ | 260,280,029 | ||||
| Leased property held for sale, net of accumulated depreciation of $6,448,603 and $5,878,933 | 7,678,246 | 8,247,916 | ||||||
| Property and equipment, net of accumulated depreciation of $3,455,219 and $2,623,020 | 122,004,387 | 122,820,122 | ||||||
| Financing notes and related accrued interest receivable, net | 20,881,295 | 20,687,962 | ||||||
| Other equity securities, at fair value | 10,363,438 | 9,572,181 | ||||||
| Cash and cash equivalents | 26,634,586 | 7,578,164 | ||||||
| Accounts and other receivables | 8,145,544 | 7,793,515 | ||||||
| Intangibles and deferred costs, net of accumulated amortization of $2,665,120 and $2,271,080 | 4,053,148 | 4,384,975 | ||||||
| Prepaid expenses and other assets | 722,865 | 732,110 | ||||||
| Goodwill | 1,718,868 | 1,718,868 | ||||||
| Total Assets | $ | 461,878,833 | $ | 443,815,842 | ||||
| Liabilities and Equity | ||||||||
| Current maturities of long-term debt | $ | 3,528,000 | $ | 3,528,000 | ||||
| Long-term debt | 62,650,000 | 63,532,000 | ||||||
| Accounts payable and other accrued liabilities | 3,015,434 | 3,935,307 | ||||||
| Management fees payable | 1,226,155 | 1,164,399 | ||||||
| Income Tax Liability | 480,637 | - | ||||||
| Deferred tax liability | 1,147,196 | 1,262,587 | ||||||
| Line of credit | 565,583 | 32,141,277 | ||||||
| Unearned revenue | — | 711,230 | ||||||
| Total Liabilities | $ | 72,613,005 | $ | 106,274,800 | ||||
| Equity | ||||||||
|
Series A Cumulative Redeemable Preferred Stock 7.375%, $56,250,000 |
$ | 56,250,000 | - | |||||
|
Capital stock, non-convertible, $0.001 par value; 46,619,681 and
46,605,055 |
46,619 | 46,605 | ||||||
| Additional paid-in capital | 306,036,447 | 309,950,440 | ||||||
| Accumulated retained earnings | - | - | ||||||
| Accumulated other comprehensive income | 177,195 | 453,302 | ||||||
| Total CorEnergy Equity | 362,510,261 | 310,450,347 | ||||||
| Non-controlling Interest | 26,755,567 | 27,090,695 | ||||||
| Total Equity | 389,265,828 | 337,541,042 | ||||||
| Total Liabilities and Equity | $ | 461,878,833 | $ | 443,815,842 | ||||
|
CorEnergy Infrastructure Trust, Inc. CONSOLIDATED STATEMENTS OF INCOME |
||||||||||
| For The Three Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||
| Revenue | ||||||||||
| Lease revenue | $ | 7,336,101 | $ | 6,762,408 | ||||||
| Sales revenue | 2,341,655 | 3,259,530 | ||||||||
| Financing revenue | 660,392 | 25,619 | ||||||||
| Transportation revenue | 3,649,735 | - | ||||||||
| Total Revenue | 13,987,883 | 10,047,557 | ||||||||
| Expenses | ||||||||||
| Cost of sales (excluding depreciation expense) | 1,248,330 | 2,707,358 | ||||||||
| Management fees | 1,171,974 | 783,868 | ||||||||
| Acquisition expense and professional fees | 1,241,955 | 415,345 | ||||||||
| Depreciation and amortization expense | 4,048,832 | 3,146,978 | ||||||||
| Transportation, maintenance and general and administrative | 991,608 | - | ||||||||
| Operating expenses | 206,360 | 222,741 | ||||||||
| Other expenses | 154,590 | 233,742 | ||||||||
| Total Expenses | 9,063,649 | 7,510,032 | ||||||||
| Operating Income | $ | 4,924,234 | $ | 2,537,525 | ||||||
| Other Income (Expense) | ||||||||||
| Net distributions and dividend income | $ | 590,408 | $ | 5,056 | ||||||
| Net realized and unrealized gain on other equity securities | 449,798 | 1,294,182 | ||||||||
| Interest expense | (1,147,272 | ) | (826,977 | ) | ||||||
| Total Other Income (Expense) | (107,066 | ) | 472,261 | |||||||
| Income before income taxes | 4,817,168 | 3,009,786 | ||||||||
| Taxes | ||||||||||
| Current tax expense | 435,756 | 854,075 | ||||||||
| Deferred tax benefit | (115,391 | ) | (340,562 | ) | ||||||
| Income tax expense, net | 320,365 | 513,513 | ||||||||
| Net Income | 4,496,803 | 2,496,273 | ||||||||
| Less: Net Income attributable to non-controlling interest | 410,175 | 391,114 | ||||||||
| Net Income available to CorEnergy Stockholders | $ | 4,086,628 | $ | 2,105,159 | ||||||
| Preferred dividend requirements | 737,500 | - | ||||||||
| Net Income attributable to Common Stockholders | $ | 3,349,128 | $ | 2,105,159 | ||||||
| Net Income | $ | 4,496,803 | $ | 2,496,273 | ||||||
| Other comprehensive income: | ||||||||||
| Changes in fair value of qualifying hedges attributable to CorEnergy stockholders | (276,107 | ) | (70,620 | ) | ||||||
| Changes in fair value of qualifying hedges attributable to non-controlling interest | (64,555 | ) | (16,511 | ) | ||||||
| Net Change in Other Comprehensive Income | $ | (340,662 | ) | $ | (87,131 | ) | ||||
| Total Comprehensive Income | 4,156,141 | 2,409,142 | ||||||||
| Less: Comprehensive income attributable to non-controlling interest | 345,620 | 374,603 | ||||||||
| Comprehensive Income attributable to CorEnergy Stockholders | $ | 3,810,521 | $ | 2,034,539 | ||||||
| Earnings Per Common Share: | ||||||||||
| Basic and Diluted | $ | 0.07 | $ | 0.07 | ||||||
| Weighted Average Shares of Common Stock Outstanding: | ||||||||||
| Basic and Diluted | 46,613,258 | 29,973,357 | ||||||||
| Dividends declared per share | $ | 0.130 | $ | 0.125 | ||||||
|
CorEnergy Infrastructure Trust, Inc. CONSOLIDATED STATEMENTS OF EQUITY |
||||||||||||||||||||||||||||||||||||||||
| Capital Stock |
|
Preferred Stock |
Additional |
Accumulated |
Retained |
Non- |
Total | |||||||||||||||||||||||||||||||||
| Shares |
Amount |
Amount | Warrants |
|
||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2013 | $ | 24,156,163 | $ | 24,156 | $ | - | $ | 1,370,700 | $ | 173,441,019 | $ | 777,403 | $ | 1,580,062 | $ | 28,348,030 | $ | 205,541,370 | ||||||||||||||||||||||
| Net Income | - | - | — | - | - | — | 7,013,856 | 1,556,157 | 8,570,013 | |||||||||||||||||||||||||||||||
| Net change in cash flow hedges | - | - | - | - | - | (324,101 | ) | — | (75,780 | ) | (399,881 | ) | ||||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | - | (324,101 | ) | 7,013,856 | 1,480,377 | 8,170,132 | ||||||||||||||||||||||||||||||
| Net offering proceeds from issuance of common stock | 22,425,000 | 22,425 | - | - | 141,702,803 | - | - | - | 141,725,228 | |||||||||||||||||||||||||||||||
| Dividends | - | — | - | - | (6,734,166 | ) | - | (8,593,918 | ) | - | (15,328,084 | ) | ||||||||||||||||||||||||||||
| Common stock issued under director's compensation plan | 4,027 | 4 | - | - | 29,996 | - | - | - | 30,000 | |||||||||||||||||||||||||||||||
| Distributions to Non-controlling interest | - | - | - | - | - | - | - | (2,737,712 | ) | (2,737,712 | ) | |||||||||||||||||||||||||||||
| Reinvestment of dividends paid to stockholders | 19,865 | 20 | - | - | 140,088 | - | - | - | 140,108 | |||||||||||||||||||||||||||||||
| Warrant expiration | - | — | - | (1,370,700 | ) | 1,370,700 | - | - | - | - | ||||||||||||||||||||||||||||||
| Balance at December 31, 2014 | 46,605,055 | 46,605 | - | - | 309,950,440 | 453,302 | - | 27,090,695 | 337,541,042 | |||||||||||||||||||||||||||||||
| Net income | - | — | - | - | - | — | 4,086,628 | 410,175 | 4,496,803 | |||||||||||||||||||||||||||||||
| Net change in cash flow hedges | - | — | - | - | - | (276,107 | ) | - | (64,555 | ) | (340,662 | ) | ||||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | - | (276,107 | ) | 4,086,628 | 345,620 | 4,156,141 | ||||||||||||||||||||||||||||||
| Series A cumulative redeemable preferred stock, 7.375% - redemption value | - | - | 56,250,000 | - | (2,039,524 | ) | - | - | - | 54,210,476 | ||||||||||||||||||||||||||||||
| Common stock dividends | - | - | - | - | (1,972,609 | ) | - | (4,086,628 | ) | - | (6,059,237 | ) | ||||||||||||||||||||||||||||
| Common stock issued under director's compensation plan | 4,484 | 4 | - | - | 29,996 | - | - | - | 30,000 | |||||||||||||||||||||||||||||||
| Distributions to Non-controlling interest | - | - | - | - | - | - | - | (680,748 | ) | (680,748 | ) | |||||||||||||||||||||||||||||
| Reinvestment of dividends paid to common stockholders | 10,142 | 10 | - | - | 68,144 | - | - | - | 68,154 | |||||||||||||||||||||||||||||||
| Balance at March 31, 2015 (Unaudited) | $ | 46,619,681 | $ | 46,619 | $ | 56,250,000 | $ | - | $ | 306,036,447 | $ | 177,195 | $ | - | $ | 26,755,567 | $ | 389,265,828 | ||||||||||||||||||||||
|
CorEnergy Infrastructure Trust, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
| For The Three Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||
| Operating Activities | ||||||||||
| Net Income | $ | 4,496,803 | $ | 2,496,273 | ||||||
|
Adjustments to reconcile net income to net cash provided by (used |
||||||||||
| Deferred income tax, net | (115,391 | ) | (340,561 | ) | ||||||
| Depreciation and amortization | 4,426,559 | 3,364,803 | ||||||||
|
Net distributions and dividend income, including recharacterization |
(371,323 | ) | (1,294,182 | ) | ||||||
| Net realized and unrealized gain on other equity securities | (449,798 | ) | (17,489 | ) | ||||||
| Unrealized gain on derivative contract | (16,880 | ) | - | |||||||
| Common stock issued under directors compensation plan | 30,000 | - | ||||||||
| Changes in assets and liabilities: | ||||||||||
| (Increase) decrease in accounts and other receivables | (352,029 | ) | 127,323 | |||||||
| Increase in financing note accrued interest receivable |
(200,167 |
) |
- | |||||||
| Increase in prepaid expenses and other assets | (295,441 | ) | (107,057 | ) | ||||||
| Increase in management fee payable | 61,756 | 92,262 | ||||||||
| Decrease in accounts payable and other accrued liabilities | (821,951 | ) | (84,245 | ) | ||||||
| Increase in current income tax liability | 480,637 | 1,033,247 | ||||||||
| Increase (decrease) in unearned revenue | (711,230 | ) | 2,844,914 | |||||||
| Net cash provided by operating activities |
$ |
6,161,545 |
$ | 8,115,288 | ||||||
| Investing Activities | ||||||||||
| Acquisition expenditures | (2,041,642 | ) | (41,887,644 | ) | ||||||
| Purchases of property and equipment | (16,464 | ) | - | |||||||
| Increase in financing notes receivable |
(31,442 |
) |
(4,107,955 | ) | ||||||
| Return of capital on distributions received | 29,864 | 491,260 | ||||||||
| Net cash used in investing activities |
$ |
(2,059,684 |
) |
$ | (45,504,339 | ) | ||||
| Financing Activities | ||||||||||
| Debt financing costs | (53,705 | ) | (220,000 | ) | ||||||
| Net offering proceeds | 54,137,791 | 45,624,563 | ||||||||
| Dividends paid | (5,991,083 | ) | (2,990,215 | ) | ||||||
| Distributions to non-controlling interest | (680,748 | ) | - | |||||||
| Advances on revolving line of credit | 1,945,361 | 1,523,266 | ||||||||
| Payments on revolving line of credit | (33,521,055 | ) | (1,122,096 | ) | ||||||
| Principal payment on credit facility | (882,000 | ) | (294,000 | ) | ||||||
| Net cash provided by financing activities | $ | 14,954,561 | $ | 42,521,518 | ||||||
| Net Change in Cash and Cash Equivalents | $ | 19,056,422 | $ | 5,132,467 | ||||||
| Cash and Cash Equivalents at beginning of period | 7,578,164 | 17,963,266 | ||||||||
| Cash and Cash Equivalents at end of period | $ | 26,634,586 | $ | 23,095,733 | ||||||
| Supplemental Disclosure of Cash Flow Information | ||||||||||
| Interest paid | $ | 943,101 | $ | 690,570 | ||||||
| Income taxes paid (net of refunds) | $ | 295,901 | $ | (179,172 | ) | |||||
| Non-Cash Operating Activities | ||||||||||
|
Change in accounts payable and accrued expenses related to |
$ | 19,096 | $ | - | ||||||
| Non-Cash Investing Activities | ||||||||||
|
Change in accounts payable and accrued expenses related to |
$ | (13,597 | ) | $ | 78,121 | |||||
|
Change in accounts payable and accrued expenses related to |
$ | (39,248 | ) | $ | - | |||||
| Non-Cash Financing Activities | ||||||||||
|
Change in accounts payable and accrued expenses related to the |
$ | (72,685 | ) | $ | - | |||||
|
Change in accounts payable and accrued expenses related to debt |
$ | 8,509 | $ | - | ||||||
|
Reinvestment of distributions by common stockholders in additional |
$ | 68,154 | $ | 29,305 | ||||||
|
CorEnergy Infrastructure Trust, Inc. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS |
||||||||||
| NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation | ||||||||||
|
For The Three |
For The Three |
|||||||||
| Net Income available to CorEnergy Stockholders | $ | 4,086,628 | $ | 2,105,159 | ||||||
| Less: | ||||||||||
| Preferred Dividend Requirements | 737,500 | — | ||||||||
| Net Income attributable to Common Stockholders | 3,349,128 | 2,105,159 | ||||||||
| Add: | ||||||||||
| Depreciation | 4,033,490 | 3,131,637 | ||||||||
| Less: | ||||||||||
| Non-Controlling Interest attributable to NAREIT FFO reconciling items | 411,455 | 411,455 | ||||||||
| NAREIT funds from operations (NAREIT FFO) | 6,971,163 | 4,825,341 | ||||||||
| Add: | ||||||||||
| Distributions received from investment securities | 248,949 | 496,316 | ||||||||
| Income tax expense, net | 320,365 | 513,513 | ||||||||
| Less: | ||||||||||
| Net distributions and dividend income | 590,408 | 5,056 | ||||||||
| Net realized and unrealized gain (loss) on other equity securities | 449,798 | 1,294,182 | ||||||||
| Funds from operations adjusted for securities investments (FFO) | 6,500,271 | 4,535,932 | ||||||||
| Add: | ||||||||||
| Transaction costs | 672,747 | 16,217 | ||||||||
| Amortization of debt issuance costs | 305,710 | 144,840 | ||||||||
| Amortization of deferred lease costs | 15,342 | 15,341 | ||||||||
| Amortization of above market leases | 72,987 | 72,984 | ||||||||
| Noncash costs associated with derivative instruments | (16,880 | ) | (17,489 | ) | ||||||
| Less: | ||||||||||
| EIP Lease Adjustment | 542,809 | 542,809 | ||||||||
| Non-Controlling Interest attributable to AFFO reconciling items | 23,284 | 23,170 | ||||||||
| Adjusted funds from operations (AFFO) | $ | 6,984,084 | $ | 4,201,846 | ||||||
| Weighted Average Common Shares | 46,613,258 | 29,973,357 | ||||||||
| NAREIT FFO attributable to Common Stockholders | $ | 0.15 | $ | 0.16 | ||||||
| FFO attributable to Common Stockholders | $ | 0.14 | $ | 0.15 | ||||||
| AFFO attributable to Common Stockholders | $ | 0.15 | $ | 0.14 | ||||||
|
Lease Revenue, Security Distributions, Financing Revenue, and Operating Results |
||||||||||
| For The Three Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||
| Lease Revenue, Security Distributions, Financing Revenue, and Operating Results | ||||||||||
| Leases: | ||||||||||
| Lease revenue | $ | 7,336,101 | $ | 6,762,408 | ||||||
| Other Equity Securities: | ||||||||||
| Net cash distributions received | 248,949 | 496,316 | ||||||||
| Financing: | ||||||||||
| Financing revenue | 660,392 | 25,619 | ||||||||
| Operations: | ||||||||||
| Sales revenue | 2,341,655 | 3,259,530 | ||||||||
| Transportation revenue | 3,649,735 | — | ||||||||
| Cost of sales | (1,248,330 | ) | (2,707,358 | ) | ||||||
| Transportation, maintenance and general and administrative | (991,608 | ) | — | |||||||
| Operating expenses (excluding depreciation and amortization) | (206,360 | ) | (222,741 | ) | ||||||
| Net Operations (excluding depreciation and amortization) | $ | 3,545,092 | $ | 329,431 | ||||||
| Total Lease Revenue, Security Distributions, Financing Revenue and Operating Results | $ | 11,790,534 | $ | 7,613,774 | ||||||
| Expenses | (2,568,519 | ) | (1,432,955 | ) | ||||||
| Non-Controlling Interest attributable to Adjusted EBITDA Items | (969,987 | ) | (956,414 | ) | ||||||
| Preferred dividend requirements | (737,500 | ) | - | |||||||
| Adjusted EBITDA attributable to Common Stockholders | $ | 7,514,528 | $ | 5,224,405 | ||||||
| For The Three Months Ended | ||||||||||
| March 31, 2015 | March 31, 2014 | |||||||||
|
Adjusted EBITDA attributable to Common Stockholders |
$ | 7,514,528 | $ | 5,224,405 | ||||||
| Other Adjustments: | ||||||||||
|
Distributions and dividends received in prior period previously
deemed a return |
371,323 | (491,260 | ) | |||||||
| Net realized and unrealized gain on securities, noncash portion | 419,934 | 1,294,182 | ||||||||
| Depreciation & amortization | (4,048,832 | ) | (3,146,978 | ) | ||||||
| Interest expense, net | (1,147,272 | ) | (826,977 | ) | ||||||
| Non-controlling interest attributable to depreciation, amortization and interest expense | 559,812 | 565,300 | ||||||||
| Income tax benefit (expense) | (320,365 | ) | (513,513 | ) | ||||||
| Income Attributable to Common Stockholders | $ | 3,349,128 | $ | 2,105,159 | ||||||
| Adjusted EBITDA per share (basic and diluted) | $ | 0.16 | $ | 0.17 | ||||||
| Net earnings per share (basic and diluted) | $ | 0.07 | $ | 0.07 | ||||||
| AFFO per share (basic and diluted)(1) | $ | 0.15 | $ | 0.14 | ||||||
| Book value per share (basic and diluted)(2) |
$ |
6.57 |
$ | 7.01 | ||||||
|
(1) |
For a full reconciliation of AFFO per share (basic and diluted) to Income Attributable to CorEnergy Stockholders, see FFO/AFFO Reconciliation table presented herein. |
|
|
(2) |
For the calculation of book value per share (basic and diluted), see Book Value Per Share table presented in the Form 10-Q. |
|
CorEnergy
Investor Relations
Debbie Hagen, 877-699-CORR
(2677)
info@corridortrust.com
Source: CorEnergy
Released May 11, 2015