Post Earnings Coverage as Atlantica Yield Reported Narrower than Expected Loss

Upcoming AWS Coverage on Dominion Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Atlantica Yield PLC (NASDAQ: ABY). The Company released its third quarter fiscal 2017 financial results on May 15, 2017. The sustainable total return Company that owns contracted assets in the energy and environment sectors reported net loss improved on a y-o-y basis. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Atlantica Yield’s competitors within the Electric Utilities space, Dominion Energy, Inc. (NYSE: D), announced on May 04, 2017, its unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (reported earnings) for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Dominion Energy in the coming days.

Today, AWS is promoting its earnings coverage on ABY; touching on D. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the three-month period ended March 31, 2017, Atlantica Yield’s revenue amounted to $198.1 million representing a 4% decrease in comparison with the revenue generated in Q1 2016 of $206.38 million. The decrease was due in part to translation differences driven by the depreciation of Euro against US dollar, and also due to the lower production at Kaxu, the Company’s solar plant in South Africa which experienced technical problems at the end of 2016. The Company’s revenue numbers came in below analysts’ consensus of $208 million.

For Q1 2017, Atlantica Yield’s further adjusted EBITDA, including unconsolidated affiliates, amounted to $165.0 million representing a 7% increase compared with $154.9 million in Q1 2016 despite lower than expected solar radiation in the Southwest of the United States. Furthermore, adjusted EBITDA margin improved to 83.3% in the reported quarter from 75% in the prior year’s same quarter

Atlantica Yield’s net loss attributable to the Company for the quarter was $11.77 million, or $0.12 per share, compared to a loss of $26.0 million, or $0.26 per share, in Q1 2016. The Company’s net loss was better than Wall Street’s expectations for a loss of $0.19 per share.

Important Events during the Quarter

In February 2017, Atlantica Yield successfully refinanced part of its corporate debt by signing a note facility with a group of funds managed by Westbourne Capital, an Australian infrastructure investor for a total amount of €275 million (approximately $293 million). With this new financing, the Company has evenly staggered the maturity of the new notes in a manner that each of the three notes of approximately €92 million matures in 2022, 2023, and 2024. Atlantica Yield had fixed the interest rate to 5.5% via an interest rate swap.

In addition, in Q1 2017, Atlantica Yield completed the acquisition of a 12.5% stake in a 114-mile transmission line which will connect California and Arizona. The asset will receive a FERC regulated rate of return, and is currently under development, with COD expected in 2020. The Company expects its total investment to be up to $10 million in the coming three years and stated that it holds a right to acquire an additional 12.5% interest in the asset.

Finally, in March 2017, Atlantica Yield obtained a waiver in Kaxu which waives any past potential cross-default with Abengoa in the project finance agreement and allows reduction of ownership by Abengoa below the 35% threshold.

Cash Matters

Atlantica Yield’s total liquidity as of March 31, 2017, represents $673.7 million and consists of $589.4 million of consolidated cash and cash equivalents, of which $102.0 million was available at the Atlantica corporate level and $84.3 million of cash classified as short-term financial investments at the project level.

As of March 31, 2017, Atlantica Yield’s net project debt amounted to $4,922.9 million and net corporate debt amounted to $565.9 million. The net corporate debt / CAFD pre-corporate debt service ratio improved to 2.6x compared to 2.7x as of December 31, 2016, and is significantly below the Company’s stated target of 3x.

During Q1 2017, Atlantica Yield’s net cash provided by operating activities amounted to $86.4 million, in-line with $84.5 million in Q1 2016. Cash Available for Distribution (“CAFD”) generation reached $60.9 million in the reported quarter compared to $18.7 million in the prior year’s corresponding quarter.

Dividend

On May 12, 2017, Atlantica Yield’s Board of Directors approved a dividend of $0.25 per share. This dividend is expected to be paid on or about June 15, 2017, to shareholders of record as of May 31, 2017.

Stock Performance

At the closing bell, on Tuesday, May 30, 2017, Atlantica Yield’s stock rose slightly by 0.05%, ending the trading session at $20.53. A total volume of 868.16 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 482.02 thousand shares. In the last six months and previous twelve months, shares of the Company have surged 8.28% and 15.14%, respectively. Moreover, the stock gained 6.10% since the start of the year. The stock is trading at a PE ratio of 218.40 and has a dividend yield of 4.87%. At Tuesday’s closing price, the stock’s net capitalization stands at $2.07 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464510