Today TerraForm Global (NASDAQ: GLBL) released its long-overdue Q2 2016 results, as a step towards regaining regulatory compliance in advance of a potential takeover by Canada’s Brookfield Asset Management.
The results show the yieldco getting its feet back under it following the collapse of SunEdison, its sponsor, and Global reported its the first clearly profitable quarter in some time. The company brought in $56 million in revenue and $17 million in operating income, and its $6 million in net income mostly offsets the losses from the previous quarter.
Global also reported $43 million in cash available for distribution (CAFD), and notes that the difference between its net income and CAFD comes largely through depreciation and non-operational general and administrative expenses. Global has had significant legal costs stemming from its dealings with SunEdison and its hiring of consultants.
However, over the full year figures are not expected to be as rosy. Earlier this month TerraForm Global reported that it estimates full-year 2016 losses at $65-$115 million, despite limited acquisitions.
But while the losses are expected to continue, TerraForm is swimming in cash. The company reported $870 million in unrestricted cash at the end of Q2, which should give it quite a bit of leverage as in terms of operational approaches.
Investors may not get more quarterly results before a decision is made by regarding the Brookfield buy-out. TerraForm expects to file its Q3 2016 report by a March deadline set by U.S. financial regulators, however TerraForm Global must also come to an agreement with Brookfield per the asset manager’s bid to buy it and TerraForm Power by March 7.
Global also does not expect to be able to file its 2016 annual results by a March deadline set by NASDAQ, but there is the potential for a similar extension as was granted with the previous quarterly reports.
The yieldco will hold a call to discuss the company’s Q2 2016 results on February 9.
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