- | Declared third quarter 2014 dividend distribution of $0.130, payable on November 28, 2014 |
- | Reiterating annualized dividend guidance of no less than $0.52 per share |
- | Successfully established a new $30 million senior secured revolving facility, replacing prior facility |
- | Completed VantaCore sale for approximately $13.6 million in gross proceeds |
- | Amended and upsized Black Bison secured financing transaction |
Third Quarter Ended September 30, 2014 Financial Summary
|
||||||||
For the Three-Month Period Ended September 30, 2014
|
||||||||
Total
|
Per Share
|
|||||||
Net Income (attributable to CorEnergy Stockholders)
|
$
|
1,888,418
|
$
|
0.06
|
||||
Funds From Operations (FFO)
|
$
|
5,082,515
|
$
|
0.16
|
||||
Adjusted Funds From Operations (AFFO)
|
$
|
4,995,439
|
$
|
0.16
|
|
September 30, 2014
|
December 31, 2013
|
||||||
Assets
|
(Unaudited)
|
|||||||
Leased property, net of accumulated depreciation of $22,115,766, and $12,754,588
|
$
|
268,670,473
|
$
|
232,220,618
|
||||
Other equity securities, at fair value
|
25,420,877
|
23,304,321
|
||||||
Financing notes and related accrued interest receivable, net
|
15,510,956
|
-
|
||||||
Cash and cash equivalents
|
5,476,216
|
17,963,266
|
||||||
Property and equipment, net of accumulated depreciation of $2,243,135 and $2,037,685
|
3,116,874
|
3,318,483
|
||||||
Lease receivable
|
1,421,211
|
711,229
|
||||||
Accounts receivable
|
1,086,587
|
2,068,193
|
||||||
Warrant investment
|
508,000
|
-
|
||||||
Intangible lease asset, net of accumulated amortization of $948,800 and $729,847
|
145,971
|
364,924
|
||||||
Deferred debt issuance costs, net of accumulated amortization of $918,811 and $572,830
|
1,081,881
|
1,225,524
|
||||||
Deferred lease costs, net of accumulated amortization of $109,299 and $63,272
|
811,164
|
857,190
|
||||||
Hedged derivative asset
|
577,584
|
680,968
|
||||||
Income tax receivable
|
-
|
834,382
|
||||||
Prepaid expenses and other assets
|
497,391
|
326,561
|
||||||
Total Assets
|
$
|
324,325,185
|
$
|
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)
|
64,414,000
|
67,060,000
|
||||||
Accounts payable and other accrued liabilities
|
3,329,284
|
2,920,267
|
||||||
Unearned revenue
|
1,422,458
|
-
|
||||||
Deferred tax liability
|
5,573,233
|
5,332,087
|
||||||
Income tax payable
|
75,522
|
-
|
||||||
Line of credit
|
-
|
81,935
|
||||||
Total Liabilities
|
$
|
78,342,497
|
$
|
78,334,289
|
||||
|
||||||||
Equity
|
||||||||
Warrants, no par value; 0 and 945,594 issued and outstanding at September 30, 2014 and December 31, 2013, respectively (5,000,000 authorized)
|
$
|
-
|
$
|
1,370,700
|
||||
Capital stock, non-convertible, $0.001 par value; 31,644,877 shares issued and outstanding at September 30, 2014 and 24,156,163 shares issued and outstanding at December 31, 2013 (100,000,000 shares authorized)
|
31,645
|
24,156
|
||||||
Additional paid-in capital
|
217,893,695
|
173,441,019
|
||||||
Accumulated retained earnings
|
-
|
1,580,062
|
||||||
Accumulated other comprehensive income
|
650,547
|
777,403
|
||||||
Total CorEnergy Equity
|
218,575,887
|
177,193,340
|
||||||
Non-controlling interest
|
27,406,801
|
28,348,030
|
||||||
Total Equity
|
245,982,688
|
205,541,370
|
||||||
Total Liabilities and Equity
|
$
|
324,325,185
|
$
|
283,875,659
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
September 30, 2013
|
|||||||||||||
Revenue
|
||||||||||||||||
Lease revenue
|
$
|
7,191,187
|
$
|
5,638,244
|
$
|
21,019,272
|
$
|
16,914,732
|
||||||||
Sales revenue
|
1,741,209
|
1,935,868
|
6,814,346
|
6,381,213
|
||||||||||||
Financing revenue
|
413,482
|
-
|
578,829
|
-
|
||||||||||||
Total Revenue
|
9,345,878
|
7,574,112
|
28,412,447
|
23,295,945
|
||||||||||||
Expenses
|
||||||||||||||||
Cost of sales (excluding depreciation expense)
|
1,284,711
|
1,411,318
|
5,377,067
|
4,891,305
|
||||||||||||
Management fees
|
813,921
|
647,380
|
2,359,054
|
1,937,588
|
||||||||||||
Asset acquisition expenses
|
102,591
|
640,302
|
139,540
|
725,513
|
||||||||||||
Professional fees
|
622,864
|
305,326
|
1,287,506
|
1,191,017
|
||||||||||||
Depreciation expense
|
3,237,261
|
2,857,412
|
9,573,809
|
8,571,860
|
||||||||||||
Amortization expense
|
15,343
|
15,342
|
46,026
|
45,963
|
||||||||||||
Operating expenses
|
210,009
|
204,446
|
646,283
|
714,830
|
||||||||||||
Directors' fees
|
50,481
|
74,437
|
178,791
|
124,994
|
||||||||||||
Other expenses
|
251,636
|
129,748
|
644,517
|
403,766
|
||||||||||||
Total Expenses
|
6,588,817
|
6,285,711
|
20,252,593
|
18,606,836
|
||||||||||||
Operating Income
|
$
|
2,757,061
|
$
|
1,288,401
|
$
|
8,159,854
|
$
|
4,689,109
|
||||||||
Other Income (Expense)
|
||||||||||||||||
Net distributions and dividend income
|
$
|
1,688,830
|
$
|
568,332
|
$
|
1,699,874
|
$
|
584,157
|
||||||||
Net realized and unrealized loss on trading securities
|
-
|
(567,276
|
)
|
-
|
(251,213
|
)
|
||||||||||
Net realized and unrealized gain (loss) on other equity securities
|
(865,470
|
)
|
1,439,296
|
2,512,738
|
3,834,306
|
|||||||||||
Interest expense
|
(977,635
|
)
|
(818,134
|
)
|
(2,623,972
|
)
|
(2,462,790
|
)
|
||||||||
Total Other Income (Expense)
|
(154,275
|
)
|
622,218
|
1,588,640
|
1,704,460
|
|||||||||||
Income before income taxes
|
2,602,786
|
1,910,619
|
9,748,494
|
6,393,569
|
||||||||||||
Taxes
|
||||||||||||||||
Current tax expense (benefit)
|
486,054
|
(680,281
|
)
|
1,340,129
|
187,367
|
|||||||||||
Deferred tax expense
|
(161,171
|
)
|
1,785,406
|
241,146
|
2,180,456
|
|||||||||||
Income tax expense, net
|
324,883
|
1,105,125
|
1,581,275
|
2,367,823
|
||||||||||||
Net Income
|
2,277,903
|
805,494
|
8,167,219
|
4,025,746
|
||||||||||||
Less: Net Income attributable to non-controlling interest
|
389,485
|
366,042
|
1,167,734
|
1,103,469
|
||||||||||||
Net Income attributable to CORR Stockholders
|
$
|
1,888,418
|
$
|
439,452
|
$
|
6,999,485
|
$
|
2,922,277
|
||||||||
Net income
|
$
|
2,277,903
|
$
|
805,494
|
$
|
8,167,219
|
$
|
4,025,746
|
||||||||
Other comprehensive income (expense):
|
||||||||||||||||
Changes in fair value of qualifying hedges attributable to CORR Stockholders
|
214,602
|
(262,972
|
)
|
(126,856
|
)
|
658,470
|
||||||||||
Changes in fair value of qualifying hedges attributable to non-controlling interest
|
50,175
|
(61,485
|
)
|
(29,660
|
)
|
153,954
|
||||||||||
Net Change in Other Comprehensive Income (Expense)
|
$
|
264,777
|
$
|
(324,457
|
)
|
$
|
(156,516
|
)
|
$
|
812,424
|
||||||
Total Comprehensive Income
|
2,542,680
|
481,037
|
8,010,703
|
4,838,170
|
||||||||||||
Less: Comprehensive income attributable to non-controlling interest
|
439,660
|
304,557
|
1,138,074
|
1,257,423
|
||||||||||||
Comprehensive Income attributable to CORR Stockholders
|
$
|
2,103,020
|
$
|
176,480
|
$
|
6,872,629
|
$
|
3,580,747
|
||||||||
Earnings Per Common Share:
|
||||||||||||||||
Basic and Diluted
|
$
|
0.06
|
$
|
0.02
|
$
|
0.23
|
$
|
0.12
|
||||||||
Weighted Average Shares of Common Stock Outstanding:
|
||||||||||||||||
Basic and Diluted
|
31,641,851
|
24,151,700
|
31,090,370
|
24,147,163
|
||||||||||||
Dividends declared per share
|
$
|
0.130
|
$
|
0.125
|
$
|
0.384
|
$
|
0.375
|
Capital Stock
|
Additional
Paid-in
|
Accumulated Other Comprehensive
|
Accumulated Retained
|
Non-Controlling
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
Warrants
|
Capital
|
Income
|
Earnings
|
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
|
-
|
-
|
-
|
-
|
-
|
6,999,485
|
1,167,734
|
8,167,219
|
||||||||||||||||||||||||
Net change in cash flow hedges
|
-
|
-
|
-
|
-
|
(126,856
|
)
|
-
|
(29,660
|
)
|
(156,516
|
)
|
|||||||||||||||||||||
Total comprehensive income
|
-
|
-
|
-
|
-
|
(126,856
|
)
|
6,999,485
|
1,138,074
|
8,010,703
|
|||||||||||||||||||||||
Net offering proceeds
|
7,475,000
|
7,475
|
-
|
45,617,088
|
-
|
-
|
-
|
45,624,563
|
||||||||||||||||||||||||
Dividends
|
-
|
-
|
-
|
(2,634,179
|
)
|
-
|
(8,579,547
|
)
|
-
|
(11,213,726
|
)
|
|||||||||||||||||||||
Distributions to non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,079,303
|
)
|
(2,079,303
|
)
|
||||||||||||||||||||||
Reinvestment of dividends paid to stockholders
|
13,714
|
14
|
-
|
99,067
|
-
|
-
|
-
|
99,081
|
||||||||||||||||||||||||
Warrant expiration
|
-
|
-
|
(1,370,700
|
)
|
1,370,700
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Balance at September 30, 2014 (Unaudited)
|
31,644,877
|
$
|
31,645
|
$
|
-
|
$
|
217,893,695
|
$
|
650,547
|
$
|
-
|
$
|
27,406,801
|
$
|
245,982,688
|
|
For the Nine Months Ended
|
|||||||
|
September 30, 2014
|
September 30, 2013
|
||||||
Operating Activities
|
||||||||
Net Income
|
$
|
8,167,219
|
$
|
4,025,746
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Deferred income tax, net
|
241,146
|
2,180,456
|
||||||
Depreciation
|
9,573,809
|
8,571,860
|
||||||
Amortization
|
860,960
|
650,330
|
||||||
Realized and unrealized loss on trading securities
|
-
|
251,213
|
||||||
Realized and unrealized gain on other equity securities
|
(4,199,375
|
)
|
(3,834,306
|
)
|
||||
Unrealized (gain) loss on derivative contract
|
(53,132
|
)
|
29,239
|
|||||
Distributions received from investment securities
|
823,499
|
(567,276
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable
|
981,606
|
(220,004
|
)
|
|||||
(Increase) in lease receivable
|
(709,982
|
)
|
-
|
|||||
(Increase) decrease in prepaid expenses and other assets
|
(170,830
|
)
|
330,715
|
|||||
Increase (decrease) in accounts payable and other accrued liabilities
|
(68,421
|
)
|
(1,571,999
|
)
|
||||
Increase (decrease) in current income tax liability
|
909,904
|
(4,626,710
|
)
|
|||||
Increase (decrease) in unearned revenue
|
1,422,458
|
(2,133,685
|
)
|
|||||
Net cash provided by operating activities
|
$
|
17,778,861
|
$
|
3,085,579
|
||||
|
||||||||
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
|
(45,524,755
|
)
|
(37,696
|
)
|
||||
Purchases of property and equipment
|
(11,970
|
)
|
(42,242
|
)
|
||||
Issuance of financing note receivable
|
(15,510,956
|
)
|
-
|
|||||
Retirement of property and equipment
|
948
|
-
|
||||||
Return of capital on distributions received
|
873,820
|
1,142,488
|
||||||
Net cash (used in) provided by investing activities
|
$
|
(60,172,913
|
)
|
$
|
6,620,795
|
|||
|
||||||||
Financing Activities
|
||||||||
Payments on lease obligation
|
-
|
(20,698
|
)
|
|||||
Debt financing costs
|
(383,678
|
)
|
(10,999
|
)
|
||||
Net offering proceeds
|
45,624,563
|
-
|
||||||
Dividends paid
|
(11,114,645
|
)
|
(5,957,317
|
)
|
||||
Distributions to non-controlling interest
|
(2,079,303
|
)
|
(2,479,425
|
)
|
||||
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
|
(2,058,000
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
$
|
29,907,002
|
$
|
(8,468,439
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
$
|
(12,487,050
|
)
|
$
|
1,237,935
|
|||
Cash and cash equivalents at beginning of period
|
17,963,266
|
17,680,783
|
||||||
Cash and cash equivalents at end of period
|
$
|
5,476,216
|
$
|
18,918,718
|
||||
|
||||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
2,104,349
|
$
|
1,948,486
|
||||
Net income taxes paid (refunds received)
|
$
|
430,225
|
$
|
4,781,617
|
||||
Non-Cash Investing Activities
|
||||||||
Change in accounts payable and accrued expenses related to acquisition expenditures
|
$
|
408,778
|
$
|
-
|
||||
Non-Cash Financing Activities
|
||||||||
Reinvestment of distributions by common stockholders in additional common shares
|
$
|
99,081
|
$
|
78,755
|
||||
Change in accounts payable and accrued expenses related to debt financing costs
|
$
|
(220,000
|
)
|
$
|
-
|
|
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
September 30, 2013
|
||||||||||||
Net Income (attributable to CorEnergy Stockholders):
|
$
|
1,888,418
|
$
|
439,452
|
$
|
6,999,485
|
$
|
2,922,277
|
||||||||
Add:
|
||||||||||||||||
Depreciation
|
3,237,261
|
2,857,412
|
9,573,809
|
8,571,860
|
||||||||||||
Distributions received from investment securities
|
864,575
|
510,963
|
1,697,319
|
1,142,486
|
||||||||||||
Income tax expense, net
|
324,883
|
1,105,125
|
1,581,275
|
2,367,823
|
||||||||||||
Less:
|
||||||||||||||||
Net distributions and dividend income from investment securities
|
$
|
1,686,637
|
$
|
567,276
|
$
|
1,686,637
|
$
|
567,276
|
||||||||
Net realized and unrealized gain on trading securities
|
-
|
(567,276
|
)
|
-
|
(251,213
|
)
|
||||||||||
Net realized and unrealized gain (loss) on other equity securities
|
(865,470
|
)
|
1,439,296
|
2,512,738
|
3,834,306
|
|||||||||||
Non-controlling interest attributable to FFO reconciling items
|
411,455
|
411,384
|
1,234,365
|
1,234,146
|
||||||||||||
Funds from operations (FFO):
|
$
|
5,082,515
|
$
|
3,062,272
|
$
|
14,418,148
|
$
|
9,619,931
|
||||||||
Add:
|
||||||||||||||||
Asset acquisition costs
|
102,591
|
640,302
|
139,540
|
725,513
|
||||||||||||
Amortization of debt issuance costs
|
306,300
|
128,618
|
595,982
|
385,412
|
||||||||||||
Amortization of deferred lease costs
|
15,343
|
15,342
|
46,026
|
45,963
|
||||||||||||
Amortization of above market leases
|
72,985
|
72,985
|
218,954
|
218,955
|
||||||||||||
Noncash costs associated with derivative instruments
|
(18,200
|
)
|
(16,990
|
)
|
(53,132
|
)
|
58,210
|
|||||||||
Nonrecurring personnel costs
|
-
|
-
|
-
|
113,232
|
||||||||||||
Less:
|
||||||||||||||||
EIP lease adjustment
|
542,809
|
542,809
|
1,628,427
|
1,628,427
|
||||||||||||
Non-controlling interest attributable to AFFO reconciling items
|
23,286
|
23,138
|
69,635
|
98,348
|
||||||||||||
Adjusted funds from operations (AFFO):
|
$
|
4,995,439
|
$
|
3,336,582
|
$
|
13,667,456
|
$
|
9,440,441
|
||||||||
|
||||||||||||||||
Weighted Average Shares
|
31,641,851
|
24,151,700
|
31,090,370
|
24,147,163
|
||||||||||||
FFO per share
|
$
|
0.16
|
$
|
0.13
|
$
|
0.46
|
$
|
0.40
|
||||||||
AFFO per share
|
$
|
0.16
|
$
|
0.14
|
$
|
0.44
|
$
|
0.39
|