| SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CorEnergy Infrastructure Trust, Inc.
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CONDENSED BALANCE SHEETS |
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December 31, 2016 |
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December 31, 2015 |
Assets |
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Leased property, net of accumulated depreciation of $743,458 and $559,078 |
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$ |
4,050,198 |
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$ |
4,234,578 |
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Investments |
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451,603,448 |
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458,088,998 |
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Cash and cash equivalents |
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5,933,481 |
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10,089,436 |
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Due from subsidiary |
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9,770,878 |
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8,317,719 |
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Note receivable from subsidiary |
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128,244,591 |
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92,730,000 |
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Deferred costs, net of accumulated amortization of $1,240,297 and $633,687 |
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1,548,255 |
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2,003,575 |
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Prepaid expenses and other assets |
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173,774 |
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116,475 |
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Income tax receivable |
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4,394 |
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4,394 |
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Total Assets |
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$ |
601,329,019 |
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$ |
575,585,175 |
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Liabilities and Equity |
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Secured credit facilities, net |
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80,527,408 |
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42,908,842 |
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Unsecured convertible senior notes, net of discount and debt issuance costs of $2,755,105 and $3,576,090 |
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111,244,895 |
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111,423,910 |
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Accounts payable and other accrued liabilities |
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1,199,616 |
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1,300,792 |
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Management fees payable |
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1,735,024 |
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1,763,747 |
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Due to affiliate |
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153,640 |
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153,640 |
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Total Liabilities |
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$ |
194,860,583 |
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$ |
157,550,931 |
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Equity |
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Series A Cumulative Redeemable Preferred Stock 7.375%, $56,250,000 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 22,500 issued and outstanding at December 31, 2016, and December 31, 2015 |
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$ |
56,250,000 |
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$ |
56,250,000 |
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Capital stock, non-convertible, $0.001 par value; 11,886,216 and 11,939,697 shares issued and outstanding at December 31, 2016, and December 31, 2015 (100,000,000 shares authorized) |
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11,886 |
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11,940 |
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Additional paid-in capital |
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350,217,746 |
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361,581,507 |
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Accumulated other comprehensive income |
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(11,196 |
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190,797 |
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Total Equity |
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406,468,436 |
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418,034,244 |
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Total Liabilities and Equity |
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$ |
601,329,019 |
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$ |
575,585,175 |
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See accompanying Schedule I Notes to Condensed Financial Statements. |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CorEnergy Infrastructure Trust, Inc. - Continued
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CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
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For the Years Ended December 31, |
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2016 |
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2015 |
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2014 |
Revenue |
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Lease revenue |
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$ |
— |
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$ |
638,243 |
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$ |
2,552,976 |
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Earnings from subsidiary |
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32,856,338 |
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10,894,003 |
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6,730,060 |
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Total Revenue |
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32,856,338 |
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11,532,246 |
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9,283,036 |
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Expenses |
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General and administrative |
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2,236,358 |
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1,426,598 |
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1,061,421 |
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Depreciation expense |
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184,380 |
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754,050 |
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2,463,062 |
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Amortization expense |
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5,316 |
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5,316 |
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5,318 |
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Total Expenses |
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2,426,054 |
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2,185,964 |
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3,529,801 |
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Operating Income |
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$ |
30,430,284 |
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$ |
9,346,282 |
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$ |
5,753,235 |
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Other Income (Expense) |
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Net distributions and dividend income |
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$ |
12,963 |
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$ |
13,542 |
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$ |
13,117 |
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Interest on loans to subsidiaries |
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11,705,465 |
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9,294,537 |
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1,100,349 |
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Interest income (expense), net |
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(12,485,510 |
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(6,334,450 |
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147,155 |
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Total Other Income (Expense) |
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(767,082 |
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2,973,629 |
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1,260,621 |
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Net Income |
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29,663,202 |
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12,319,911 |
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7,013,856 |
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Other comprehensive income: |
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Changes in fair value of qualifying hedges |
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(201,993 |
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(262,505 |
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(324,101 |
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Total Comprehensive Income |
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29,461,209 |
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$ |
12,057,406 |
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$ |
6,689,755 |
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See accompanying Schedule I Notes to Condensed Financial Statements. |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CorEnergy Infrastructure Trust, Inc. - Continued
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CONDENSED STATEMENTS OF CASH FLOW |
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For the Years Ended December 31, |
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2016 |
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2015 |
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2014 |
Net cash provided by (used in) operating activities |
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$ |
(3,141,286 |
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$ |
7,166,380 |
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$ |
(2,047,777 |
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Investing Activities |
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Proceeds from sale of leased property held for sale |
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— |
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7,678,246 |
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— |
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Issuance of note to subsidiary |
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(47,414,250 |
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— |
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(90,000,000 |
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Principal payments received from notes to subsidiaries |
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11,899,659 |
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2,570,000 |
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— |
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Investment in consolidated subsidiaries |
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— |
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(250,703,944 |
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(96,570,263 |
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Cash distributions from consolidated subsidiaries |
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39,139,897 |
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23,392,442 |
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18,559,328 |
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Net cash provided by (used in) investing activities |
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$ |
3,625,306 |
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$ |
(217,063,256 |
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$ |
(168,010,935 |
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Financing Activities |
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Debt financing costs |
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(193,000 |
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(1,439,929 |
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(1,600,908 |
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Net offering proceeds on Series A preferred stock |
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— |
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54,210,476 |
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— |
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Net offering proceeds on common stock |
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— |
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73,184,679 |
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141,797,913 |
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Net offering proceeds on convertible debt |
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— |
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111,262,500 |
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— |
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Repurchases of common stock |
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(2,041,851 |
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— |
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— |
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Repurchases of convertible debt |
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(899,960 |
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— |
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— |
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Dividends paid on Series A preferred stock |
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(4,148,437 |
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(3,503,125 |
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— |
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Dividends paid on common stock |
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(34,896,727 |
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(28,528,224 |
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(15,187,976 |
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Advances on revolving line of credit |
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44,000,000 |
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42,000,000 |
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32,000,000 |
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Payments on revolving line of credit |
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— |
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(74,000,000 |
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— |
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Proceeds from term debt |
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— |
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45,000,000 |
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— |
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Principal payments on term debt |
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(6,460,000 |
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(1,800,000 |
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— |
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Net cash provided by (used in) financing activities |
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$ |
(4,639,975 |
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$ |
216,386,377 |
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$ |
157,009,029 |
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Net Change in Cash and Cash Equivalents |
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$ |
(4,155,955 |
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$ |
6,489,501 |
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$ |
(13,049,683 |
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Cash and Cash Equivalents at beginning of period |
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10,089,436 |
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3,599,935 |
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16,649,618 |
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Cash and Cash Equivalents at end of period |
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$ |
5,933,481 |
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$ |
10,089,436 |
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$ |
3,599,935 |
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Supplemental Disclosure of Cash Flow Information |
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Interest Paid |
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$ |
11,335,654 |
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$ |
5,254,591 |
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$ |
— |
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Income taxes paid (net of refunds) |
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$ |
— |
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$ |
314,728 |
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$ |
192,938 |
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Non-Cash Investing Activities |
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Change in accounts payable and accrued expenses related to acquisition expenditures |
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$ |
— |
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$ |
— |
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$ |
(344,065 |
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Non-Cash Financing Activities |
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Change in accounts payable and accrued expenses related to the issuance of equity |
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$ |
— |
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$ |
(72,685 |
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$ |
72,685 |
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Change in accounts payable and accrued expenses related to debt financing costs |
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$ |
— |
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$ |
(30,607 |
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$ |
(176,961 |
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Reinvestment of distributions by common stockholders in additional common shares |
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$ |
815,889 |
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$ |
817,915 |
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$ |
140,108 |
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See accompanying Schedule I Notes to Condensed Financial Statements. |
NOTES TO SCHEDULE I CONDENSED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
In the parent-company-only financial statements, the Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The parent-company-only financial statements should be read in conjunction with the Company's consolidated financial statements.
NOTE B - DIVIDENDS FROM SUBSIDIARIES
Cash dividends paid to CorEnergy Infrastructure Trust, Inc. from the Company's consolidated subsidiaries were $39.1 million, $23.4 million, and $18.6 million for the years ended December 31, 2016, 2015, and 2014, respectively.
NOTE C - BASIS OF PRESENTATION
The Company reclassified $10.9 million in Earnings from subsidiary in the Condensed Statement of Cash Flows for the 2015 period. The amount previously reported in operating cash flows has been reclassified and presented in investing cash flows in the current year presentation. Line items on the Condensed Statement of Cash Flows impacted by the correction are as follows:
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2015
Previously Reported
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Reclassification |
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2015
As
Adjusted
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Net Cash provided by operating activities |
18,060,382 |
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(10,894,002 |
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7,166,380 |
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Investing Activities |
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Investment in consolidated subsidiaries |
(261,597,946 |
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10,894,002 |
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(250,703,944 |
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Net Cash used in investing activities |
(227,957,258 |
) |
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10,894,002 |
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(217,063,256 |
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