| 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, 2017 |
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December 31, 2016 |
Assets |
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Leased property, net of accumulated depreciation of $927,838 and $743,458 |
$ |
3,865,818 |
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$ |
4,050,198 |
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Investments |
479,840,250 |
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451,603,448 |
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Cash and cash equivalents |
6,662,474 |
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5,933,481 |
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Due from subsidiary |
7,302,678 |
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9,770,878 |
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Note receivable from subsidiary |
83,250,000 |
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128,244,591 |
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Deferred costs, net of accumulated amortization of $226,342 and $1,240,297 |
2,255,425 |
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1,548,255 |
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Prepaid expenses and other assets |
197,211 |
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178,168 |
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Total Assets |
$ |
583,373,856 |
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$ |
601,329,019 |
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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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Unsecured convertible senior notes, net of discount and debt issuance costs of $1,967,917 and $2,755,105 |
112,032,083 |
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111,244,895 |
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Accounts payable and other accrued liabilities |
987,881 |
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1,199,616 |
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Management fees payable |
1,748,426 |
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1,735,024 |
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Due to affiliate |
153,640 |
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153,640 |
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Total Liabilities |
$ |
114,922,030 |
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$ |
194,860,583 |
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Equity |
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Series A Cumulative Redeemable Preferred Stock 7.375%, $130,000,000 and $56,250,000 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 52,000 and 22,500 issued and outstanding at December 31, 2017 and December 31, 2016, respectively |
$ |
130,000,000 |
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$ |
56,250,000 |
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Capital stock, non-convertible, $0.001 par value; 11,915,830 and 11,886,216 shares issued and outstanding at December 31, 2017 and December 31, 2016 (100,000,000 shares authorized) |
11,916 |
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11,886 |
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Additional paid-in capital |
338,439,910 |
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350,217,746 |
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Accumulated other comprehensive loss |
— |
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(11,196 |
) |
Total Equity |
468,451,826 |
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406,468,436 |
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Total Liabilities and Equity |
$ |
583,373,856 |
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$ |
601,329,019 |
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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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2017 |
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2016 |
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2015 |
Revenue |
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Lease revenue |
$ |
— |
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$ |
— |
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$ |
638,243 |
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Earnings from subsidiary |
36,222,221 |
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32,856,338 |
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10,894,003 |
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Total Revenue |
36,222,221 |
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32,856,338 |
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11,532,246 |
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Expenses |
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General and administrative |
2,298,201 |
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2,236,358 |
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1,426,598 |
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Depreciation expense |
184,380 |
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184,380 |
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754,050 |
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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 |
2,487,897 |
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2,426,054 |
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2,185,964 |
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Operating Income |
$ |
33,734,324 |
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$ |
30,430,284 |
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$ |
9,346,282 |
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Other Income (Expense) |
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Net distributions and dividend income |
$ |
96,866 |
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$ |
12,963 |
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$ |
13,542 |
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Interest on loans to subsidiaries |
11,549,344 |
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11,705,465 |
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9,294,537 |
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Interest expense, net |
(11,451,944 |
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(12,485,510 |
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(6,334,450 |
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Loss on extinguishment of debt |
(225,801 |
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— |
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— |
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Total Other Income (Expense) |
(31,535 |
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(767,082 |
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2,973,629 |
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Net Income |
$ |
33,702,789 |
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$ |
29,663,202 |
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$ |
12,319,911 |
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Other comprehensive income: |
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Changes in fair value of qualifying hedges |
11,196 |
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(201,993 |
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(262,505 |
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Total Comprehensive Income |
$ |
33,713,985 |
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$ |
29,461,209 |
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$ |
12,057,406 |
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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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2017 |
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2016 |
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2015 |
Net cash provided by (used in) operating activities |
$ |
1,661,123 |
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$ |
(3,141,286 |
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$ |
7,166,380 |
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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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Issuance of note to subsidiary |
— |
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(47,414,250 |
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— |
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Principal payments received from notes to subsidiaries |
40,092,095 |
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11,899,659 |
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2,570,000 |
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Investment in consolidated subsidiaries |
(33,900,000 |
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— |
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(250,703,944 |
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Cash distributions from consolidated subsidiaries |
46,774,111 |
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39,139,897 |
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23,392,442 |
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Net cash provided by (used in) investing activities |
$ |
52,966,206 |
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$ |
3,625,306 |
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$ |
(217,063,256 |
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Financing Activities |
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Debt financing costs |
(1,360,241 |
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(193,000 |
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(1,439,929 |
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Net offering proceeds on Series A preferred stock |
71,161,531 |
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— |
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54,210,476 |
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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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Net offering proceeds on convertible debt |
— |
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— |
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111,262,500 |
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Repurchases of common stock |
— |
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(2,041,851 |
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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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Dividends paid on Series A preferred stock |
(8,227,734 |
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(4,148,437 |
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(3,503,125 |
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Dividends paid on common stock |
(34,731,892 |
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(34,896,727 |
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(28,528,224 |
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Advances on revolving line of credit |
10,000,000 |
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44,000,000 |
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42,000,000 |
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Payments on revolving line of credit |
(54,000,000 |
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— |
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(74,000,000 |
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Proceeds from term debt |
— |
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— |
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45,000,000 |
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Principal payments on term debt |
(36,740,000 |
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(6,460,000 |
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(1,800,000 |
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Net cash provided by (used in) financing activities |
$ |
(53,898,336 |
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$ |
(4,639,975 |
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$ |
216,386,377 |
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Net Change in Cash and Cash Equivalents |
$ |
728,993 |
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$ |
(4,155,955 |
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$ |
6,489,501 |
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Cash and Cash Equivalents at beginning of period |
5,933,481 |
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10,089,436 |
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3,599,935 |
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Cash and Cash Equivalents at end of period |
$ |
6,662,474 |
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$ |
5,933,481 |
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$ |
10,089,436 |
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Supplemental Disclosure of Cash Flow Information |
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Interest Paid |
$ |
10,080,764 |
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$ |
11,335,654 |
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$ |
5,254,591 |
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Income taxes paid (net of refunds) |
— |
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— |
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314,728 |
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Non-Cash Investing Activities |
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Conversion of note receivable from subsidiary to investments |
4,902,495 |
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— |
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— |
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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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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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Reinvestment of distributions by common stockholders in additional common shares |
962,308 |
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815,889 |
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817,915 |
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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 $46.8 million, $39.1 million and $23.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.
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