| 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 |
December 31, 2019 |
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December 31, 2018 |
Assets |
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Leased property, net of accumulated depreciation of $1,296,598 and $1,112,218 |
$ |
3,497,058 |
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$ |
3,681,438 |
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Investments |
401,331,625 |
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415,674,601 |
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Cash and cash equivalents |
113,264,989 |
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64,574,701 |
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Due from subsidiary |
11,635,874 |
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10,549,719 |
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Note receivable from subsidiary |
75,412,500 |
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81,000,000 |
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Deferred costs, net of accumulated amortization of $1,198,023 and $712,182 |
1,283,744 |
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1,769,585 |
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Prepaid expenses and other assets |
306,939 |
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265,024 |
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Total Assets |
$ |
606,732,729 |
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$ |
577,515,068 |
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Liabilities and Equity |
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Unsecured convertible senior notes, net of discount and debt issuance costs of $3,768,504 and $1,180,729 |
118,323,496 |
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112,777,271 |
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Accounts payable and other accrued liabilities |
3,180,010 |
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1,075,045 |
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Management fees payable |
1,669,950 |
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1,831,613 |
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Due to affiliate |
153,640 |
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153,640 |
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Total Liabilities |
$ |
123,327,096 |
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$ |
115,837,569 |
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Equity |
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Series A Cumulative Redeemable Preferred Stock 7.375%, $125,493,175 and $125,555,675 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 50,197 and 50,222 issued and outstanding at December 31, 2019 and December 31, 2018, respectively |
$ |
125,493,175 |
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$ |
125,555,675 |
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Capital stock, non-convertible, $0.001 par value; 13,638,916 and 11,960,225 shares issued and outstanding at December 31, 2019 and December 31, 2018 (100,000,000 shares authorized) |
13,639 |
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11,960 |
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Additional paid-in capital |
367,510,691 |
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326,962,163 |
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Retained earnings (deficit) |
(9,611,872 |
) |
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9,147,701 |
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Total Equity |
483,405,633 |
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461,677,499 |
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Total Liabilities and Equity |
$ |
606,732,729 |
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$ |
577,515,068 |
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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 |
For the Years Ended December 31, |
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2019 |
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2018 |
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2017 |
Revenue |
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Earnings from subsidiary |
$ |
41,073,290 |
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$ |
48,353,177 |
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$ |
36,222,221 |
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Total Revenue |
41,073,290 |
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48,353,177 |
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36,222,221 |
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Expenses |
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General and administrative |
2,045,404 |
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2,353,593 |
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2,298,201 |
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Depreciation expense |
184,380 |
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184,380 |
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184,380 |
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Amortization expense |
5,316 |
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5,316 |
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5,316 |
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Total Expenses |
2,235,100 |
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2,543,289 |
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2,487,897 |
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Operating Income |
$ |
38,838,190 |
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$ |
45,809,888 |
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$ |
33,734,324 |
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Other Income (Expense) |
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Net distributions and other income |
$ |
1,252,749 |
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$ |
56,827 |
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$ |
96,866 |
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Interest on loans to subsidiaries |
5,916,317 |
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7,903,104 |
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11,549,344 |
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Interest expense, net |
(7,967,196 |
) |
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(10,057,943 |
) |
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(11,451,944 |
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Loss on extinguishment of debt |
(33,960,565 |
) |
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— |
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(225,801 |
) |
Total Other Expense |
(34,758,695 |
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(2,098,012 |
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(31,535 |
) |
Net Income |
$ |
4,079,495 |
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$ |
43,711,876 |
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$ |
33,702,789 |
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Other comprehensive income: |
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Changes in fair value of qualifying hedges |
— |
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— |
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11,196 |
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Total Comprehensive Income |
$ |
4,079,495 |
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$ |
43,711,876 |
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$ |
33,713,985 |
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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 |
For the Years Ended December 31, |
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2019 |
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2018 |
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2017 |
Net cash provided by (used in) operating activities |
$ |
(939,775 |
) |
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$ |
(6,257,124 |
) |
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$ |
1,661,123 |
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Investing Activities |
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Principal payments received from notes to subsidiaries |
5,587,500 |
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2,250,000 |
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40,092,095 |
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Investment in consolidated subsidiaries |
— |
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(73,996 |
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(33,900,000 |
) |
Cash distributions from consolidated subsidiaries |
55,416,267 |
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110,140,459 |
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46,774,111 |
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Net cash provided by investing activities |
$ |
61,003,767 |
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$ |
112,316,463 |
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$ |
52,966,206 |
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Financing Activities |
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Debt financing costs |
(372,759 |
) |
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— |
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(1,360,241 |
) |
Net offering proceeds on Series A preferred stock |
— |
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— |
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71,161,531 |
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Net offering proceeds on convertible debt |
116,355,125 |
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— |
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— |
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Cash paid for extinguishment of convertible debt |
(78,939,743 |
) |
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— |
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— |
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Repurchases of preferred stock debt |
(60,550 |
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(4,275,553 |
) |
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— |
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Dividends paid on Series A preferred stock |
(9,255,121 |
) |
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(9,587,500 |
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(8,227,734 |
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Dividends paid on common stock |
(39,100,656 |
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(34,284,059 |
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(34,731,892 |
) |
Advances on revolving line of credit |
— |
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— |
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10,000,000 |
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Payments on revolving line of credit |
— |
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— |
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(54,000,000 |
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Principal payments on term debt |
— |
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— |
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(36,740,000 |
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Net cash used in financing activities |
$ |
(11,373,704 |
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$ |
(48,147,112 |
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$ |
(53,898,336 |
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Net Change in Cash and Cash Equivalents |
$ |
48,690,288 |
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$ |
57,912,227 |
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$ |
728,993 |
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Cash and Cash Equivalents at beginning of period |
64,574,701 |
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6,662,474 |
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5,933,481 |
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Cash and Cash Equivalents at end of period |
$ |
113,264,989 |
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$ |
64,574,701 |
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$ |
6,662,474 |
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Supplemental Disclosure of Cash Flow Information |
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Interest Paid |
$ |
4,504,263 |
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$ |
8,794,086 |
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$ |
10,080,764 |
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Non-Cash Investing Activities |
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Conversion of note receivable from subsidiary to investments |
$ |
— |
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$ |
— |
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$ |
4,902,495 |
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Dissolution of investment in subsidiary upon liquidation |
— |
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(73,996 |
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— |
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Non-Cash Financing Activities |
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Common stock issued upon exchange and conversion of convertible notes |
$ |
66,064,966 |
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$ |
42,654 |
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$ |
— |
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Reinvestment of distributions by common stockholders in additional common shares |
403,831 |
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1,509,830 |
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962,308 |
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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 $55.4 million, $110.1 million and $46.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
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