-
|
Declared second quarter 2014 dividend distribution of $0.130, payable on August 29, 2014
|
-
|
Reiterating annualized dividend guidance of no less than $0.52 per share
|
-
|
Joined the Russell 2000, Russell 3000, Russell Microcap and Russell Global Indexes
|
-
|
Amended and upsized the Black Bison secured financing transaction
|
-
|
Entered into a non-binding term sheet to upsize and replace existing credit facility
|
Second Quarter Ended June 30, 2014 Financial Summary
|
|||
|
|
||
|
For the Three-Month Period Ended June 30, 2014
|
||
|
Total
|
|
Per Share
|
Net Income (attributable to CorEnergy Stockholders)
|
$3,005,908
|
|
$0.10
|
Funds From Operations (FFO)
|
$4,799,701
|
|
$0.15
|
Adjusted Funds From Operations (AFFO)
|
$4,470,169
|
|
$0.14
|
|
|
|
|
June 30, 2014
|
December 31, 2013
|
|||||||
Assets
|
(Unaudited)
|
|||||||
Leased property, net of accumulated depreciation of $18,949,516, and $12,754,588
|
$ | 270,189,704 | $ | 232,220,618 | ||||
Other equity securities, at fair value
|
25,786,785 | 23,304,321 | ||||||
Financing note and related accrued interest receivable, net
|
4,299,356 | - | ||||||
Cash and cash equivalents
|
18,986,616 | 17,963,266 | ||||||
Property and equipment, net of accumulated depreciation of $2,179,305 and $2,037,685
|
3,176,863 | 3,318,483 | ||||||
Lease receivable
|
1,099,264 | 711,229 | ||||||
Accounts receivable
|
1,116,161 | 2,068,193 | ||||||
Intangible lease asset, net of accumulated amortization of $875,816 and $729,847
|
218,955 | 364,924 | ||||||
Deferred debt issuance costs, net of accumulated amortization of $862,512 and $572,830
|
935,842 | 1,225,524 | ||||||
Deferred lease costs, net of accumulated amortization of $93,955 and $63,272
|
826,507 | 857,190 | ||||||
Hedged derivative asset
|
294,607 | 680,968 | ||||||
Income tax receivable
|
412,495 | 834,382 | ||||||
Prepaid expenses and other assets
|
483,614 | 326,561 | ||||||
Total Assets
|
$ | 327,826,769 | $ | 283,875,659 | ||||
Liabilities and Equity
|
||||||||
Current maturities of long-term debt
|
$ | 3,528,000 | $ | 2,940,000 | ||||
Long-term debt (net of current maturities)
|
65,296,000 | 67,060,000 | ||||||
Accounts payable and other accrued liabilities
|
2,961,460 | 2,920,267 | ||||||
Unearned revenue
|
2,133,686 | - | ||||||
Deferred tax liability
|
5,734,405 | 5,332,087 | ||||||
Line of credit
|
- | 81,935 | ||||||
Total Liabilities
|
$ | 79,653,551 | $ | 78,334,289 | ||||
Equity
|
||||||||
Warrants, no par value; 0 and 945,594 issued and outstanding at June 30, 2014 and December 31, 2013, respectively (5,000,000 authorized)
|
$ | - | $ | 1,370,700 | ||||
Capital stock, non-convertible, $0.001 par value; 31,640,158 shares issued and outstanding at June 30, 2014 and 24,156,163 shares issued and outstanding at December 31, 2013 (100,000,000 shares authorized)
|
31,640 | 24,156 | ||||||
Additional paid-in capital
|
220,080,751 | 173,441,019 | ||||||
Accumulated retained earnings
|
- | 1,580,062 | ||||||
Accumulated other comprehensive income
|
435,945 | 777,403 | ||||||
Total CorEnergy Equity
|
220,548,336 | 177,193,340 | ||||||
Non-controlling Interest
|
27,624,882 | 28,348,030 | ||||||
Total Equity
|
248,173,218 | 205,541,370 | ||||||
Total Liabilities and Equity
|
$ | 327,826,769 | $ | 283,875,659 |
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
June 30, 2014
|
June 30, 2013
|
June 30, 2014
|
June 30, 2013
|
|||||||||||||
Revenue
|
||||||||||||||||
Lease revenue
|
$ | 7,065,677 | $ | 5,638,244 | $ | 13,828,085 | $ | 11,276,488 | ||||||||
Sales revenue
|
1,813,607 | 1,929,772 | 5,073,137 | 4,445,345 | ||||||||||||
Financing revenue
|
139,728 | - | 165,347 | - | ||||||||||||
Total Revenue
|
9,019,012 | 7,568,016 | 19,066,569 | 15,721,833 | ||||||||||||
Expenses
|
||||||||||||||||
Cost of sales (excluding depreciation expense)
|
1,384,998 | 1,476,348 | 4,092,356 | 3,479,987 | ||||||||||||
Management fees
|
761,265 | 646,394 | 1,545,133 | 1,290,208 | ||||||||||||
Asset acquisition expenses
|
20,732 | 53,394 | 36,949 | 85,211 | ||||||||||||
Professional fees
|
265,514 | 431,508 | 664,642 | 885,691 | ||||||||||||
Depreciation expense
|
3,204,911 | 2,857,412 | 6,336,548 | 5,714,448 | ||||||||||||
Amortization expense
|
15,342 | 15,342 | 30,683 | 30,621 | ||||||||||||
Operating expenses
|
213,533 | 303,480 | 436,274 | 510,384 | ||||||||||||
Directors' fees
|
63,276 | 32,557 | 128,310 | 50,557 | ||||||||||||
Other expenses
|
224,173 | 151,312 | 392,881 | 274,018 | ||||||||||||
Total Expenses
|
6,153,744 | 5,967,747 | 13,663,776 | 12,321,125 | ||||||||||||
Operating Income
|
2,865,268 | 1,600,269 | 5,402,793 | 3,400,708 | ||||||||||||
Other Income (Expense)
|
||||||||||||||||
Net distributions and dividend income
|
$ | 5,988 | $ | 2,701 | $ | 11,044 | $ | 15,825 | ||||||||
Net realized and unrealized gain on trading securities
|
- | - | - | 316,063 | ||||||||||||
Net realized and unrealized gain on other equity securities
|
2,084,026 | (30,976 | ) | 3,378,208 | 2,395,010 | |||||||||||
Interest Expense
|
(819,360 | ) | (907,275 | ) | (1,646,337 | ) | (1,644,656 | ) | ||||||||
Total Other Income
|
1,270,654 | (935,550 | ) | 1,742,915 | 1,082,242 | |||||||||||
Income before income taxes
|
4,135,922 | 664,719 | 7,145,708 | 4,482,950 | ||||||||||||
Taxes
|
||||||||||||||||
Current tax expense
|
- | 581,757 | 854,075 | 867,648 | ||||||||||||
Deferred tax expense (benefit)
|
742,879 | (340,003 | ) | 402,317 | 395,050 | |||||||||||
Income tax expense, net
|
742,879 | 241,754 | 1,256,392 | 1,262,698 | ||||||||||||
Net Income
|
3,393,043 | 422,965 | 5,889,316 | 3,220,252 | ||||||||||||
Less: Net Income attributable to non-controlling interest
|
387,135 | 352,893 | 778,249 | 737,427 | ||||||||||||
Net Income attributable to CORR Stockholders
|
$ | 3,005,908 | $ | 70,072 | $ | 5,111,067 | $ | 2,482,825 | ||||||||
Net income
|
$ | 3,393,043 | $ | 422,965 | $ | 5,889,316 | $ | 3,220,252 | ||||||||
Other comprehensive income (expense)
|
||||||||||||||||
Changes in fair value of qualifying hedges attributable to CORR Stockholders
|
(270,838 | ) | 921,442 | (341,458 | ) | 921,442 | ||||||||||
Changes in fair value of qualifying hedges attributable to non-controlling interest
|
(63,324 | ) | 215,439 | (79,835 | ) | 215,439 | ||||||||||
Net Change in Other Comprehensive Income
|
$ | (334,162 | ) | $ | 1,136,881 | $ | (421,293 | ) | $ | 1,136,881 | ||||||
Total Comprehensive Income
|
3,058,881 | 1,559,846 | 5,468,023 | 4,357,133 | ||||||||||||
Less: Comprehensive income attributable to non-controlling interest
|
323,811 | 568,332 | 698,414 | 952,866 | ||||||||||||
Comprehensive Income attributable to CORR Stockholders
|
$ | 2,735,070 | $ | 991,514 | $ | 4,769,609 | $ | 3,404,267 | ||||||||
Earnings Per Common Share:
|
||||||||||||||||
Basic and Diluted
|
$ | 0.10 | $ | - | $ | 0.17 | $ | 0.10 | ||||||||
Weighted Average Shares of Common Stock Outstanding:
|
||||||||||||||||
Basic and Diluted
|
31,637,568 | 24,147,958 | 30,810,060 | 24,144,856 | ||||||||||||
Dividends declared per share
|
$ | 0.129 | $ | 0.125 | $ | 0.254 | $ | 0.250 |
Accumulated
|
Retained
|
|||||||||||||||||||||||||||||||
Other
|
Earnings
|
Non-
|
||||||||||||||||||||||||||||||
Capital Stock
|
Additional Paid-
|
Comprehensive
|
(Accumulated
|
Controlling
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
Warrants
|
in Capital
|
Income
|
Deficit)
|
Interest
|
Total
|
|||||||||||||||||||||||||
Balance at December 31, 2012
|
24,140,667 | $ | 24,141 | $ | 1,370,700 | $ | 175,256,675 | $ | - | $ | 4,209,023 | $ | 29,981,653 | $ | 210,842,192 | |||||||||||||||||
Net income
|
- | - | - | - | - | 4,502,339 | 1,466,767 | 5,969,106 | ||||||||||||||||||||||||
Net change in cash flow hedges
|
- | - | - | - | 777,403 | - | 181,762 | 959,165 | ||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | 777,403 | 4,502,339 | 1,648,529 | 6,928,271 | ||||||||||||||||||||||||
Dividends
|
- | - | - | (1,923,760 | ) | - | (7,131,300 | ) | - | (9,055,060 | ) | |||||||||||||||||||||
Distributions to non-controlling interest
|
- | - | - | - | - | - | (3,282,152 | ) | (3,282,152 | ) | ||||||||||||||||||||||
Reinvestment of dividends paid to stockholders
|
15,496 | 15 | - | 108,104 | - | - | - | 108,119 | ||||||||||||||||||||||||
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
|
- | - | - | - | - | 5,111,067 | 778,249 | 5,889,316 | ||||||||||||||||||||||||
Net change in cash flow hedges
|
- | - | - | - | (341,458 | ) | - | (79,835 | ) | (421,293 | ) | |||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | (341,458 | ) | 5,111,067 | 698,414 | 5,468,023 | |||||||||||||||||||||||
Net offering proceeds
|
7,475,000 | 7,475 | - | 45,617,088 | - | - | - | 45,624,563 | ||||||||||||||||||||||||
Dividends
|
- | - | - | (409,376 | ) | - | (6,691,129 | ) | - | (7,100,505 | ) | |||||||||||||||||||||
Distributions to non-controlling interest
|
- | - | - | - | - | - | (1,421,562 | ) | (1,421,562 | ) | ||||||||||||||||||||||
Reinvestment of dividends paid to stockholders
|
8,995 | 9 | - | 61,320 | - | - | - | 61,329 | ||||||||||||||||||||||||
Warrant expiration
|
- | - | (1,370,700 | ) | 1,370,700 | - | - | - | - | |||||||||||||||||||||||
Balance at June 30, 2014 (Unaudited)
|
31,640,158 | $ | 31,640 | $ | - | $ | 220,080,751 | $ | 435,945 | $ | - | $ | 27,624,882 | $ | 248,173,218 |
For the Six Months Ended
|
||||||||
June 30, 2014
|
June 30, 2013
|
|||||||
Operating Activities
|
||||||||
Net Income
|
$ | 5,889,316 | $ | 3,220,252 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Deferred income tax, net
|
402,318 | 395,050 | ||||||
Depreciation
|
6,336,548 | 5,714,448 | ||||||
Amortization
|
466,334 | 433,386 | ||||||
Realized and unrealized gain on trading securities
|
- | (316,063 | ) | |||||
Realized and unrealized gain on other equity securities
|
(3,378,208 | ) | (2,395,010 | ) | ||||
Unrealized (gain) loss on derivative contract
|
(34,932 | ) | 46,228 | |||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable
|
952,032 | (352,037 | ) | |||||
(Increase) in lease receivable
|
(388,035 | ) | - | |||||
(Increase) decrease in prepaid expenses and other assets
|
(94,053 | ) | 31,321 | |||||
Decrease in accounts payable and other accrued liabilities
|
(366,777 | ) | (1,217,791 | ) | ||||
Increase in dividends payable to shareholders
|
- | 3,018,495 | ||||||
Increase in distributions payable to non-controlling interest
|
- | 1,690,413 | ||||||
Increase (decrease) in current income tax liability
|
421,887 | (3,855,947 | ) | |||||
Increase (decrease) in unearned revenue
|
2,133,686 | (1,422,457 | ) | |||||
Net cash provided by (used in) operating activities
|
$ | 12,340,116 | $ | 4,990,288 | ||||
Investing Activities
|
||||||||
Proceeds from sale of long-term investment of trading and other equity securities
|
- | 5,563,865 | ||||||
Deferred lease costs
|
- | (5,620 | ) | |||||
Acquisition of leased assets
|
(43,536,044 | ) | - | |||||
Purchases of property and equipment
|
- | (42,242 | ) | |||||
Issuance of financing note receivable
|
(4,299,356 | ) | - | |||||
Return of capital on distributions received
|
832,744 | 631,524 | ||||||
Net cash (used in) provided by investing activities
|
$ | (47,002,656 | ) | $ | 6,147,527 | |||
Financing Activities
|
||||||||
Payments on lease obligation
|
- | (20,698 | ) | |||||
Debt financing costs
|
(220,000 | ) | (10,999 | ) | ||||
Net offering proceeds
|
45,624,563 | - | ||||||
Dividends paid
|
(7,039,176 | ) | (5,986,937 | ) | ||||
Distributions to non-controlling interest
|
(1,421,562 | ) | (1,690,413 | ) | ||||
Advances on revolving line of credit
|
2,535,671 | 139,397 | ||||||
Payments on revolving line of credit
|
(2,617,606 | ) | (139,397 | ) | ||||
Principal payment on credit facility
|
(1,176,000 | ) | - | |||||
Net cash provided by (used in) financing activities
|
$ | 35,685,890 | $ | (7,709,047 | ) | |||
Net change in cash and cash equivalents
|
$ | 1,023,350 | $ | 3,428,768 | ||||
Cash and cash equivalents at beginning of period
|
17,963,266 | 17,680,783 | ||||||
Cash and cash equivalents at end of period
|
$ | 18,986,616 | $ | 21,109,551 | ||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Interest paid
|
$ | 1,399,619 | $ | 1,242,441 | ||||
Net income taxes paid (refunds received)
|
$ | 432,187 | $ | 4,776,354 | ||||
Non-Cash Investing Activities
|
||||||||
Change in accounts payable and accrued expenses related to acquisition expenditures
|
$ | 627,970 | $ | - | ||||
Non-Cash Financing Activities
|
||||||||
Reinvestment of distributions by common stockholders in additional common shares
|
$ | 61,329 | $ | 49,141 | ||||
Change in accounts payable and accrued expenses related to debt financing costs
|
$ | (220,000 | ) | $ | - |
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
June 30, 2014
|
June 30, 2013
|
June 30, 2014
|
June 30, 2013
|
|||||||||||||
Net Income (attributable to CorEnergy Stockholders):
|
$ | 3,005,908 | $ | 70,072 | $ | 5,111,067 | $ | 2,482,825 | ||||||||
Add:
|
||||||||||||||||
Depreciation
|
3,204,911 | 2,857,412 | 6,336,548 | 5,714,448 | ||||||||||||
Distributions received from investment securities
|
341,484 | 317,184 | 832,744 | 631,524 | ||||||||||||
Income tax expense, net
|
742,879 | 241,754 | 1,256,392 | 1,262,698 | ||||||||||||
Less:
|
||||||||||||||||
Net realized and unrealized gain on trading securities
|
- | - | - | 316,063 | ||||||||||||
Net realized and unrealized gain (loss) on other equity securities
|
2,084,026 | (30,976 | ) | 3,378,208 | 2,395,010 | |||||||||||
Non-controlling interest attributable to FFO reconciling items
|
411,455 | 411,384 | 822,910 | 822,762 | ||||||||||||
Funds from operations (FFO):
|
$ | 4,799,701 | $ | 3,106,014 | $ | 9,335,633 | $ | 6,557,660 | ||||||||
Add:
|
||||||||||||||||
Transaction costs
|
20,732 | 53,394 | 36,949 | 85,211 | ||||||||||||
Amortization of debt issuance costs
|
144,840 | 128,320 | 289,682 | 256,794 | ||||||||||||
Amortization of deferred lease costs
|
15,342 | 15,342 | 30,623 | 30,621 | ||||||||||||
Amortization of above market leases
|
72,985 | 72,985 | 145,969 | 145,970 | ||||||||||||
Noncash costs associated with derivative instruments
|
(17,443 | ) | 71,850 | (34,932 | ) | 75,200 | ||||||||||
Nonrecurring personnel costs
|
- | 113,232 | - | 113,232 | ||||||||||||
Less:
|
||||||||||||||||
EIP lease adjustment
|
542,809 | 542,809 | 1,085,618 | 1,085,618 | ||||||||||||
Non-controlling interest attributable to AFFO reconciling items
|
23,179 | 39,929 | 46,349 | 75,210 | ||||||||||||
Adjusted funds from operations (AFFO):
|
$ | 4,470,169 | $ | 2,978,399 | $ | 8,671,957 | $ | 6,103,860 | ||||||||
Weighted Average Shares
|
31,637,568 | 24,147,958 | 30,810,060 | 24,144,856 | ||||||||||||
FFO per share
|
$ | 0.15 | $ | 0.13 | $ | 0.30 | $ | 0.27 | ||||||||
AFFO per share
|
$ | 0.14 | $ | 0.12 | $ | 0.28 | $ | 0.25 |