| 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, 2015 |
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December 31, 2014 |
Assets |
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Leased property, net of accumulated depreciation of $559,078 and $374,699 |
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$ |
4,234,578 |
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$ |
4,418,957 |
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Leased property held for sale, net of accumulated depreciation of $0 and $5,878,933 |
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— |
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8,247,916 |
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Investments |
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458,088,998 |
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219,883,494 |
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Cash and cash equivalents |
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10,089,436 |
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3,599,935 |
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Due from subsidiary |
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8,317,719 |
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12,236,050 |
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Note receivable from subsidiary |
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92,730,000 |
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95,300,000 |
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Intangible lease asset, net of accumulated amortization of $0 and $1,021,784 |
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— |
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72,987 |
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Deferred debt issuance costs, net of accumulated amortization of $674,658 and $69,772 |
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2,450,323 |
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1,645,887 |
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Deferred lease costs, net of accumulated amortization of $16,123 and $10,808 |
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63,653 |
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68,968 |
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Income tax receivable |
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4,394 |
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319,122 |
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Prepaid expenses and other assets |
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116,475 |
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147,114 |
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Total Assets |
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$ |
576,095,576 |
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$ |
345,940,430 |
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Liabilities and Equity |
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Current Maturities of Long-Term Debt |
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3,600,000 |
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— |
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Accounts payable and other accrued liabilities |
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1,300,792 |
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1,339,739 |
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Management fees payable |
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1,763,747 |
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1,164,399 |
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Due to affiliate |
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153,640 |
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274,715 |
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Line of credit |
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— |
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32,000,000 |
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Unearned revenue |
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— |
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711,230 |
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Long-Term Debt |
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151,243,153 |
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Total Liabilities |
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$ |
158,061,332 |
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$ |
35,490,083 |
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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, $0.001 par value), 10,000,000 authorized; 22,500 and 0 issued and outstanding as of December 31, 2015, and December 31, 2014 |
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$ |
56,250,000 |
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$ |
— |
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Capital stock, non-convertible, $0.001 par value; 11,939,697 and 9,321,010 shares issued and outstanding at December 31, 2015, and December 31, 2014 (100,000,000 shares authorized) |
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11,940 |
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46,605 |
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Additional paid-in capital |
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361,581,507 |
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309,950,440 |
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Accumulated retained earnings |
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— |
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— |
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Accumulated other comprehensive income |
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190,797 |
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453,302 |
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Total Equity |
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418,034,244 |
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310,450,347 |
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Total Liabilities and Equity |
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$ |
576,095,576 |
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$ |
345,940,430 |
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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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2015 |
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2014 |
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2013 |
Revenue |
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Lease revenue |
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$ |
638,243 |
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$ |
2,552,976 |
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$ |
2,552,976 |
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Earnings (loss) from subsidiary |
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10,894,003 |
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6,730,060 |
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5,720,413 |
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Total Revenue |
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11,532,246 |
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9,283,036 |
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8,273,389 |
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Expenses |
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Depreciation expense |
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754,050 |
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2,463,062 |
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2,463,052 |
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Amortization expense |
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5,316 |
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5,318 |
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5,320 |
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General and administrative |
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1,426,598 |
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1,061,421 |
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1,509,297 |
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Total Expenses |
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2,185,964 |
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3,529,801 |
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3,977,669 |
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Operating Income (Loss) |
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$ |
9,346,282 |
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$ |
5,753,235 |
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$ |
4,295,720 |
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Other Income (Expense) |
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Net distributions and dividend income |
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$ |
13,542 |
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$ |
13,117 |
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$ |
6,681 |
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Net realized and unrealized gain (loss) on trading securities |
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— |
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— |
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— |
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Net realized and unrealized gain (loss) on other equity securities |
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— |
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— |
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— |
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Interest on loans to subsidiaries |
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9,294,537 |
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1,100,349 |
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752,305 |
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Interest income (expense) |
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(6,334,450 |
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147,155 |
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(49,214 |
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Total Other Income (Expense) |
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2,973,629 |
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1,260,621 |
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709,772 |
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Income (Loss) before income taxes |
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12,319,911 |
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7,013,856 |
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5,005,492 |
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Taxes |
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Current tax expense (benefit) |
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— |
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— |
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(540,111 |
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Deferred tax expense (benefit) |
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— |
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— |
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1,043,264 |
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Income tax expense (benefit), net |
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— |
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— |
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503,153 |
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Net Income (Loss) |
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12,319,911 |
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7,013,856 |
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4,502,339 |
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Other comprehensive income: |
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Changes in fair value of qualifying hedges |
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(262,505 |
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(324,101 |
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777,403 |
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Total Comprehensive Income |
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$ |
12,057,406 |
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$ |
6,689,755 |
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$ |
5,279,742 |
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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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2015 |
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2014 |
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2013 |
Net cash provided by (used in) operating activities |
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$ |
18,060,382 |
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$ |
(2,047,777 |
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$ |
(8,040,654 |
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Investing Activities |
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Proceeds from sale of leased property held for sale |
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7,678,246 |
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— |
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— |
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Issuance of note to subsidiary |
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— |
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(90,000,000 |
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— |
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Principal payments received from notes to subsidiaries |
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2,570,000 |
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— |
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— |
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Investment in consolidated subsidiaries |
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(261,597,946 |
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(96,570,263 |
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(1,651,956 |
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Cash distributions from consolidated subsidiaries |
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23,392,442 |
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18,559,328 |
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19,337,911 |
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Net cash provided by (used in) investing activities |
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$ |
(227,957,258 |
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$ |
(168,010,935 |
) |
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$ |
17,685,955 |
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Financing Activities |
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Debt financing costs |
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(1,439,929 |
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(1,600,908 |
) |
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(30,002 |
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Net offering proceeds on Series A preferred stock |
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54,210,476 |
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— |
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— |
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Net offering proceeds on common stock |
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73,184,679 |
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141,797,913 |
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(523,094 |
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Net offering proceeds on convertible debt |
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111,262,500 |
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— |
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— |
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Dividends paid on Series A preferred stock |
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(3,503,125 |
) |
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— |
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— |
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Dividends paid on common stock |
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(28,528,224 |
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(15,187,976 |
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(8,946,941 |
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Advances on revolving line of credit |
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42,000,000 |
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32,000,000 |
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— |
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Payments on revolving line of credit |
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(74,000,000 |
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— |
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— |
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Proceeds from term debt |
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45,000,000 |
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— |
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— |
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Principal payments on term debt |
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(1,800,000 |
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— |
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— |
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Net cash provided by (used in) financing activities |
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$ |
216,386,377 |
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$ |
157,009,029 |
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$ |
(9,500,037 |
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Net Change in Cash and Cash Equivalents |
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$ |
6,489,501 |
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$ |
(13,049,683 |
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$ |
145,264 |
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Cash and Cash Equivalents at beginning of period |
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3,599,935 |
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16,649,618 |
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16,504,354 |
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Cash and Cash Equivalents at end 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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Supplemental Disclosure of Cash Flow Information |
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Income taxes paid (net of refunds) |
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$ |
314,728 |
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$ |
192,938 |
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$ |
3,761,161 |
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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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$ |
(344,065 |
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$ |
(1,407,724 |
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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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$ |
(72,685 |
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$ |
72,685 |
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$ |
(523,094 |
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Change in accounts payable and accrued expenses related to debt financing costs |
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$ |
(30,607 |
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$ |
(176,961 |
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$ |
220,000 |
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Reinvestment of distributions by common stockholders in additional common shares |
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$ |
817,915 |
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$ |
140,108 |
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$ |
108,119 |
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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 $23.4 million, $18.6 million, and $19.3 million for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively.
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