{ "docId": "019de518-36cb-716e-be22-2ada4cde7f0b", "docSlug": "13f36e1ebab78b40f08022a6ed82eb17", "documentTitle": "Altus Power | Results Presentation Deck | 21 slides", "authorId": "altus-power", "authorName": "Altus Power", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-03-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 19, "pageCount": 21, "prevPage": 18, "nextPage": 20, "slideType": "disclaimer", "function": "establish_context", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de518-36cb-716e-be22-2ada4cde7f0b/19", "deckHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b", "deckJsonHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b.json", "deckAnchorHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b#slide-19", "components": [ { "bbox": { "h": 0.08, "w": 0.94, "x": 0.03, "y": 0.62 }, "kind": "paragraph", "text": "Adjusted EBITDA is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. Adjusted EBITDA should not be considered an alternative to but viewed in conjunction with GAAP results, as we believe it provides a more complete understanding of ongoing business performance and trends than GAAP measures alone. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0aad6aed-34ff-48b2-b528-594ef78f600b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.94, "x": 0.03, "y": 0.31 }, "kind": "paragraph", "text": "Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures that we use to measure our performance. We believe that investors and analysts also use adjusted EBITDA and adjusted EBITDA margin in evaluating our operating performance. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The GAAP measure most directly comparable to adjusted EBITDA is net income and to adjusted EBITDA margin is net income over operating revenues. The presentation of adjusted EBITDA and adjusted EBITDA margin should not be construed to suggest that our future results will be unaffected by non-cash or non-recurring items. In addition, our calculation of adjusted EBITDA and adjusted EBITDA margin are not necessarily comparable to adjusted EBITDA and adjusted EBITDA margin as calculated by other companies and investors and analysts should read carefully the components of our calculations of these non-GAAP financial measures.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1bc1ff60-c4c0-4c3c-a859-9a8fd4bf1bee", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.94, "x": 0.03, "y": 0.71 }, "kind": "paragraph", "text": "In addition to adjusted EBITDA, we may also refer to ARR or annual recurring revenues, or ARR, which is a non-GAAP measure. ARR is an estimate that management uses to determine the expected annual revenue potential of our operating asset base at the end of a calendar year. ARR assumes customary weather, production, expenses and other economic and market conditions, as well as seasonality. It is not derived from a GAAP financial measure so it is difficult to provide a meaningful reconciliation to GAAP. The elements of our financial statements that are considered or evaluated in determining our ARR are the following: the estimated megawatt hours of generation assuming all new build and operating assets added any time during the year were in place for the full year and the estimated power prices for such assets based on historical power prices. We believe this metric can be helpful to assess our portfolio asset base in operation at the beginning of an annual period, e.g. if we were to receive the benefit of assets added for a full year even if they were added during a partial year. This figure is only an estimate and is based on a number of assumptions by Altus Power's management that may or may not be realized.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3a15a6ed-59a8-426e-afa0-9d7e18add432", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.01, "w": 0.6, "x": 0.03, "y": 0.27 }, "kind": "paragraph", "text": "We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ea97681-3138-4142-9136-6568bd8a64f1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.94, "x": 0.03, "y": 0.15 }, "kind": "paragraph", "text": "We define adjusted EBITDA as net income plus net interest expense, depreciation, amortization and accretion expense, income tax expense or benefit, acquisition and entity formation costs, stock-based compensation expense, and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, gain or loss on fair value remeasurement of contingent consideration, gain or loss on disposal of property, plant and equipment, change in fair value of redeemable warrant liability, change in fair value of Alignment Shares liability, loss on extinguishment of debt, net, and other miscellaneous items of other income and expenses", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "80ebf7e8-74eb-4e83-85cb-40fa620224f0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.94, "x": 0.03, "y": 0.45 }, "kind": "paragraph", "text": "We believe adjusted EBITDA is useful to management, investors and analysts in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis. Factors in this determination include the exclusion of (1) variability due to gains or losses related to fair value remeasurement of contingent consideration and the change in fair value of redeemable warrant liability and Alignment Shares liability, (2) strategic decisions to acquire businesses, dispose of property, plant and equipment or extinguish debt, and (3) the non-recurring nature of stock-based compensation and other miscellaneous items of income and expense, which affect results in a given period or periods. In addition, adjusted EBITDA represents the business performance of the Company before the application of statutory income tax rates and tax adjustments corresponding to the various jurisdictions in which the Company operates, as well as interest expense and depreciation, amortization and accretion expense, which are not representative of our ongoing operating performance.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "87ce6a94-f382-435d-aabd-b48b51bb4e2d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.94, "x": 0.03, "y": 0.88 }, "kind": "paragraph", "text": "Altus Power does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty and without unreasonable effort, items such as acquisition and entity formation costs, gain on fair value remeasurement of contingent consideration, change in fair value of redeemable warrant liability, change in fair value of alignment shares. These items are uncertain, depend on various factors, and could be material to Altus Power's results computed in accordance with GAAP.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "94bb1f18-e3c6-4c93-ab32-b15d6d3851a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.01, "w": 0.02, "x": 0.95, "y": 0.94 }, "kind": "source-note", "text": "19", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc0b923f-60f9-42fa-9bca-0659ee20ada9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.39, "x": 0.03, "y": 0.04 }, "kind": "title", "text": "Non-GAAP Definitions", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f7ba3921-4613-4ef3-82bd-2a5fa1dee071", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 21, "from": 11, "beatId": "af98441f-6bb5-4237-bf10-15b47c131aed", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Action", "beatSlug": "aida-action", "evidence": "The appendix and contact information provide additional details and a call to action", "position": 3, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 21, "from": 11, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "20348717-daed-4364-a62d-7e7a47afd16e", "evidence": "The appendix and contact information provide additional details", "position": 2, "objective": "What are the implications of not investing in Altus Power?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }