NRG Yield, Inc. Announces Second Quarter 2013 Financial Results Following Successful Initial Public Offering

  NRG Yield, Inc. Announces Second Quarter 2013 Financial Results Following
  Successful Initial Public Offering

Business and Financial Highlights

  *Closed Initial Public Offering (IPO) of 22,511,250 shares on July 22, 2013
    at a price of $22 per share, above the initial pricing range of $19 - $21
    per share
  *Second Quarter Results:

       *Adjusted EBITDA of $61 million
       *Cash Available for Distribution of $32 million

  *Pro-rated initial quarterly dividend of $0.23 per share of Class A common
    stock (based on initial quarterly dividend of $0.30) expected to be
    declared and paid during the fourth quarter 2013

Providing Full Year 2013 and 2014 Guidance

  *Adjusted EBITDA: $240 million and $285 million for 2013 and 2014,
    respectively
  *Cash Available for Distribution: $72 million and $103 million for 2013 and
    2014, respectively

Reaffirming Twelve Months Ending June 30, 2014 and June 30, 2015 Guidance

  *Adjusted EBITDA: $282 million and $286 million for June 30, 2014 and June
    30, 2015, respectively
  *Cash Available for Distribution: $87 million and $105 million for June 30,
    2014 and June 30, 2015, respectively

Business Wire

PRINCETON, N.J. -- August 14, 2013

NRG Yield, Inc. (NYSE: NYLD) today reported second quarter 2013 financial and
operating results. NRG Yield, Inc. closed its initial public offering on July
22, 2013 and the financial and operating results for the second quarter 2013
discussed below reflect the results of the predecessor of the Company.

“We are pleased to report strong financial and operating results for the first
quarter following our successful initial public offering,” said NRG Yield
Chairman, Chief Executive Officer and President David Crane. “We believe this
marks the beginning of our effort to deliver a consistent, predictable and
steadily growing stream of distributable cash flows from our contracted asset
portfolio to our shareholders.”


Table 1: Selected Financial Results  Three Months Ended   Six Months Ended
(dollars in millions)                6/30/13   6/30/12   6/30/13  6/30/12
Operating Revenue                     79        42          132      86
Net Income                            33         (1)         40        4
Adjusted EBITDA                       61         25          95        50
Cash Available for Distribution      32        13        27       14



Table 2: Selected Operating Results  Three Months Ended   Six Months Ended
(MWh and MWt in thousands)           6/30/13   6/30/12   6/30/13  6/30/12
Equivalent Availability Factor        95.4%     96.4%       92.4%    97.3%
(Conventional)
Renewable Generation (MWh)            241        124         423       250
Thermal Generation (MWht)            367       343       871      760


NRG Yield reported net income for the quarter of $33 million. For the quarter,
Adjusted EBITDA was $61 million and cash available for distribution was $32
million. Adjusted EBITDA was higher by $36 million, or 144%, when compared to
the same quarter of 2012, primarily driven by assets that came online during
the fourth quarter of 2012 through the first half of 2013. These assets
include within our Renewable segment, all of the MWs associated with Avra
Valley, Alpine, Borrego, and 105MWs from our 48.95% interest in CVSR, as well
as Marsh Landing, which is within our Conventional segment.

Segment Results


Table 3: Adjusted EBITDA
(dollars in millions)  Three Months Ended   Six Months Ended
Segment                6/30/13   6/30/12   6/30/13  6/30/12
Conventional            26        8           34       16
Renewable               28         10          45        19
Thermal                 9          9           20        19
Corporate              (2)       (2)       (4)      (4)
Adjusted EBITDA        61        25        95       50



Table 4: Net Income/(Loss)
(dollars in millions)  Three Months Ended   Six Months Ended
Segment                6/30/13   6/30/12   6/30/13  6/30/12
Conventional            15        4           19       8
Renewable               17         (7)         21        (5)
Thermal                 4          3           9         7
Corporate              (3)       (1)       (9)      (6)
Net Income/(Loss)      33        (1)       40       4


Liquidity and Capital Resources


Table 5: Liquidity
(dollars in millions)       6/30/13  12/31/12
Cash and Cash Equivalents   17       22
Restricted Cash             67       20
Total Liquidity             84       42


As of June 30, 2013, NRG Yield had total liquidity of $84 million, an increase
of $42 million from December 31, 2012, driven by $21 million in 1603 cash
grant proceeds from the Avra Valley solar project net of repayment of the cash
grant bridge loan, as well as $23 million of cash held in reserve for
remaining construction payments related to the Marsh Landing facility.

On July 22, 2013, the Company raised $468 million in its initial public
offering with the sale of 22,511,250 shares of Class A common stock and used
$395 million to purchase Class A units in NRG Yield LLC from NRG Energy Inc.
representing a 29.1% interest. It also used $73 million to purchase an
additional 3.5 million Class A units, or 5.4% interest, in NRG Yield LLC with
such funds earmarked for general corporate purposes. Concurrently, NRG Yield
LLC, through its ownership of NRG Yield Operating LLC, acquired a portfolio of
solar, wind, and natural gas generation and thermal infrastructure assets,
primarily located in the Northeast, Southwest and California regions of the
United States from NRG Energy Inc. in return for 42,738,750 Class B units in
NRG Yield LLC. In connection with the initial public offering NRG Yield LLC
and NRG Yield Operating LLC entered into a $60 million senior secured
revolving credit facility.

Guidance

NRG Yield is reaffirming the Adjusted EBITDA and Cash Available for
Distribution guidance as forecasted in our prospectus of July 16, 2013 of $282
million and $87 million, respectively, for the twelve months ending June 30,
2014 and $286 million and $105 million, respectively, for the twelve months
ending June 30, 2015. We are also providing Adjusted EBITDA guidance for the
twelve months ending December 31, 2013 and 2014, of $240 million and $285
million respectively, and Cash Available for Distribution guidance for the
twelve months ending December 31, 2013 and 2014 of $72 million and $103
million, respectively. Finally, we are also reaffirming our intention to pay a
pro-rated initial quarterly dividend of $0.23 per share of Class A common
stock (calculated from the closing date of the offering through and including
September 30, 2013, and based on our initial quarterly dividend of $0.30)
expected to be declared and paid during the fourth quarter 2013.


Table 6: Adjusted EBITDA and Cash Available for Distribution Guidance
                                   For the twelve months ending
(dollars in millions)               12/31/13  06/30/14  12/31/14  06/30/15
Adjusted EBITDA                     240       282       285       286
Pro-rata Adjusted EBITDA from        (60)       (70)       (75)       (74)
unconsolidated affiliates
Cash distributions from              20         22         38         44
unconsolidated affiliates
Cash interest paid                   (58)       (72)       (65)       (63)
Maintenance capital expenditures     (16)       (12)       (10)       (12)
Change in other assets               12         1          1          1
Principal amortization of           (66)      (64)      (71)      (77)
indebtedness
Estimated Cash Available for        72        87        103       105
Distribution


About NRG Yield

NRG Yield owns a diversified portfolio of contracted renewable and
conventional generation and thermal infrastructure assets in the U.S.,
including fossil fuel, solar and wind power generation facilities that provide
the capacity to support more than one million American homes and businesses.
Our thermal infrastructure assets provide steam, hot water and/or chilled
water, and in some instances electricity, to commercial businesses,
universities, hospitals and governmental units in ten locations. NRG Yield is
traded on the New York Stock Exchange under the symbol NYLD. Visit
nrgyield.com for more information.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements are subject to certain
risks, uncertainties and assumptions and include our Adjusted EBITDA, cash
available for distribution, expected earnings, future growth and financial
performance, and typically can be identified by the use of words such as
“expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe” and similar
terms. Although NRG Yield believes that its expectations are reasonable, it
can give no assurance that these expectations will prove to have been correct,
and actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include, among
others, general economic conditions, hazards customary in the power industry,
weather conditions, competition in wholesale power markets, the volatility of
energy and fuel prices, failure of customers to perform under contracts,
changes in the wholesale power markets, changes in government regulation of
markets and of environmental emissions, the condition of capital markets
generally, our ability to access capital markets, unanticipated outages at our
generation facilities, adverse results in current and future litigation,
failure to identify or successfully implement acquisitions, our ability to
enter into new contracts as existing contracts expire, our ability to obtain
anticipated Section 1603 Cash Grants and our ability to maintain and grow our
quarterly dividends. Furthermore, any dividends are subject to available
capital, market conditions, and compliance with associated laws and
regulations.

NRG Yield undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. The Adjusted EBITDA and cash available for distribution are
estimates as of today’s date, August 14, 2013, and are based on assumptions
believed to be reasonable as of this date. NRG Yield expressly disclaims any
current intention to update such guidance. The foregoing review of factors
that could cause NRG Yield’s actual results to differ materially from those
contemplated in the forward-looking statements included in this news release
should be considered in connection with information regarding risks and
uncertainties that may affect NRG Yield’s future results included in NRG
Yield’s filings with the Securities and Exchange Commission at www.sec.gov. In
addition, NRG Yield makes available free of charge at www.nrgyield.com, copies
of materials it files with, or furnish to, the SEC.


NRG YIELD

COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

                                        Three months ended  Six months ended
                                         June 30,             June 30,
(In millions, except for per share      2013       2012    2013     2012
amounts)
Operating Revenues                                                   
Total operating revenues                 $  79       $ 42     $ 132     $ 86
Operating Costs and Expenses
Cost of operations                       30          26       59        53
Depreciation and amortization            9           6        19        12
General and administrative — affiliate   2          2       4        4    
Total operating costs and expenses       41         34      82       69   
Operating Income                         38         8       50       17   
Other Income/(Expense)
Equity in earnings of unconsolidated     2           6        6         9
affiliates
Interest expense                         (6     )    (16  )   (11   )   (20  )
Total other expense                      (4     )    (10  )   (5    )   (11  )
Income/(Loss) Before Income Taxes        34          (2   )   45        6
Income tax expense/(benefit)             1          (1   )   5        2    
Net Income/(Loss)                        33         (1   )   40       4    


           See accompanying notes to combined financial statements.


NRG YIELD

COMBINED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)
                                        Three months ended  Six months ended
                                         June 30,             June 30,
                                        2013       2012     2013      2012
                                                                         
Net Income/(Loss)                        $  33       $ (1 )   $  40      $ 4
Other Comprehensive Income, net of tax
Unrealized gain/(loss) on derivatives,
net of income taxes of $13, $3, $15      18         (5   )   19        (7  )
and $5
Other comprehensive income/(loss)        18         (5   )   19        (7  )
Comprehensive Income/(Loss)              51         (6   )   59        (3  )


           See accompanying notes to combined financial statements.


NRG YIELD

COMBINED BALANCE SHEETS
                                            June 30, 2013  December 31, 2012
(In millions, except shares)                 (unaudited)     
ASSETS
Current Assets
Cash and cash equivalents                    $   17          $    22
Restricted cash                              67              20
Accounts receivable, net — trade             37              22
Due from NRG and subsidiaries                8               —
Inventory                                    9               5
Notes receivable — external                  10              9
Renewable energy grant receivable            101             —
Deferred income taxes                        10              1
Prepayments and other current assets         9              2             
Total current assets                         268             81
Property, plant and equipment, net of        1,492           1,598
accumulated depreciation of $134 and $115
Other Assets
Equity investments in affiliates             243             220
Notes receivable — affiliate                 3               6
Notes receivable — external                  7               8
Intangible assets, net of accumulated        30              30
amortization of $5 and $3
Derivative instruments                       6               —
Other non-current assets                     25             21            
Total other assets                           314            285           
Total Assets                                 $   2,074      $    1,964    
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt            $   126         $    58
Accounts payable — trade                     15              166
Due to NRG and subsidiaries                  37              26
Derivative instruments                       23              19
Accrued expenses and other current           11             16            
liabilities
Total current liabilities                    212            285           
Other Liabilities
Long-term debt — external                    1,051           723
Long-term debt — affiliate                   25              26
Deferred income taxes                        33              4
Derivative instruments                       26              61
Other non-current liabilities                30             25            
Total non-current liabilities                1,165          839           
Total Liabilities                            1,377          1,124         
Commitments and Contingencies
Stockholders’ Equity
Additional paid-in capital                   639             834
Retained earnings                            63              30
Accumulated other comprehensive loss         (5         )    (24           )
Total Stockholders’ Equity                   697            840           
Total Liabilities and Stockholders’ Equity   $   2,074      $    1,964    


           See accompanying notes to combined financial statements.


NRG YIELD

COMBINED STATEMENTS OF CASH FLOWS

(Unaudited)

                                                    Six months ended June 30,
                                                     2013           2012
                                                     (In millions)
Cash Flows from Operating Activities
Net income                                           $   40          $  4
Adjustments to reconcile net income to net cash
(used)/provided by operating activities:
Distributions and equity in earnings of              3               3
unconsolidated affiliates
Depreciation and amortization                        19              12
Amortization of financing costs and debt             1               (1)
discount/premiums
Amortization of intangibles and out-of-market        1               1
contracts
Changes in deferred income taxes                     5               2
Changes in derivative instruments                    (10      )      11
Changes in other working capital                     (70      )      26     
Net Cash Used by Operating Activities                (11      )      58     
Cash Flows from Investing Activities
Capital expenditures                                 (182     )      (156   )
(Increase)/decrease in restricted cash, net          (47      )      1
Decrease/(increase) in notes receivable              3               (12    )
Proceeds from renewable energy grants                24              25
Investments in unconsolidated affiliates             (19      )      (2     )
Net Cash Used by Investing Activities                (221     )      (144   )
Cash Flows from Financing Activities
Capital contributions from NRG                       150             142
Dividends and returns of capital to NRG              (312     )      (23    )
Proceeds from issuance of long-term debt —           420             10
external
Payment of debt issuance costs                       (4       )      (8     )
Payments for long-term debt — external               (25      )      (27    )
Payments for long-term debt — affiliate              (2       )      (5     )
Net Cash Provided by Financing Activities            227            89     
Net (Decrease)/Increase in Cash and Cash             (5       )      3
Equivalents
Cash and Cash Equivalents at Beginning of Period     22             24     
Cash and Cash Equivalents at End of Period           $   17         $  27  


           See accompanying notes to combined financial statements.


Appendix Table A-1: Second Quarter 2013 Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss):

(dollars in millions)  Conventional  Renewable  Thermal  Corporate  Total
Net Income/(Loss)      15            17         4        (3)        33
Plus:                                                              
Income Tax              —              —           —         1           1
Interest Expense, net   4              —           2         —           6
Depreciation and        2              4           3         —           9
Amortization Expense
Adjustments to
reflect Yield’s
pro-rata share of       5              7           —         —           12
Adjusted EBITDA from
Unconsolidated
Affiliates
                                                               
Adjusted EBITDA        26            28         9        (2)        61



Appendix Table A-2: Second Quarter 2012 Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss):

(dollars in millions)  Conventional  Renewable  Thermal  Corporate  Total
Net Income/(Loss)      4             (7)        3        (1)        (1)
Plus:                                                              
Income Tax              —              —           —         (1)         (1)
Interest Expense, net   —              14          2         —           16
Depreciation and        —              2           4         —           6
Amortization Expense
Adjustments to
reflect Yield’s
pro-rata share of       4              1           —         —           5
Adjusted EBITDA from
Unconsolidated
Affiliates
                                                               
Adjusted EBITDA        8             10         9        (2)        25



Appendix Table A-3: YTD June 30, 2013 Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss):

(dollars in millions)  Conventional  Renewable  Thermal  Corporate  Total
Net Income/(Loss)      19            21         9        (9)        40
Plus:                                                              
Income Tax              —              —           —         5           5
Interest Expense, net   4              3           4         —           11
Depreciation and        2              10          7         —           19
Amortization Expense
Adjustments to
reflect Yield’s
pro-rata share of       9              11          —         —           20
Adjusted EBITDA from
Unconsolidated
Affiliates
                                                               
Adjusted EBITDA        34            45         20       (4)        95



Appendix Table A-4: YTD June 30, 2012 Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss):

(dollars in millions)  Conventional  Renewable  Thermal  Corporate  Total
Net Income/(Loss)      8             (5)        7        (6)        4
Plus:                                                              
Income Tax              —              —           —         2           2
Interest Expense, net   —              16          4         —           20
Depreciation and        —              4           8         —           12
Amortization Expense
Adjustments to
reflect Yield’s
pro-rata share of       8              4           —         —           12
Adjusted EBITDA from
Unconsolidated
Affiliates
                                                               
Adjusted EBITDA        16            19         19       (4)        50



Appendix A-5: Cash Available for Distribution Reconciliation

The following table summarizes the calculation of cash available for
distribution and provides a reconciliation to adjusted
EBITDA:
                                 Three Months Ended     Six Months Ended
(dollars in millions)            6/30/13    6/30/12    6/30/13    6/30/12
Adjusted EBITDA                   61         25          95         50
Pro-rata Adjusted EBITDA from     (14)        (11)        (26)        (21)
unconsolidated affiliates
Cash distributions from           8           7           9           12
unconsolidated affiliates
Cash interest paid                (7)         —           (19)        (9)
Maintenance Capital               (1)         —           (4)         (3)
expenditures
Change in other assets            (5)         —           (5)         —
Principal amortization of        (10)       (8)        (23)       (15)
indebtedness
Cash Available for               32         13         27         14
Distribution



Appendix Table A-6: Adjusted EBITDA Guidance Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income:
                                  For the Twelve Months Ending
(dollars in millions)              12/31/13   06/30/14  12/31/14  06/30/15
Net Income                         77         64        58        62
Adjustments to net income to
arrive at Adjusted EBITDA:
Interest income                     —           (1)        —          (1)
Depreciation and amortization       51          65         66         67
Interest expense, net               45          68         66         64
Contract amortization               1           1          1          1
Income tax expense                  30          43         41         41
Adjustment to reflect pro-rata
Adjusted EBITDA from               36         42        53        52
unconsolidated affiliates
Adjusted EBITDA                    240        282       285       286


EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements
are not recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance. The presentation of Adjusted
EBITDA should not be construed as an inference that NRG’s future results will
be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is presented
because NRG Yield considers it an important supplemental measure of its
performance and believes debt-holders frequently use EBITDA to analyze
operating performance and debt service capacity. EBITDA has limitations as an
analytical tool, and you should not consider it in isolation, or as a
substitute for analysis of our operating results as reported under GAAP. Some
of these limitations are:

  *EBITDA does not reflect cash expenditures, or future requirements for
    capital expenditures, or contractual commitments;
  *EBITDA does not reflect changes in, or cash requirements for, working
    capital needs;
  *EBITDA does not reflect the significant interest expense, or the cash
    requirements necessary to service interest or principal payments, on debt
    or cash income tax payments;
  *Although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized will often have to be replaced in the
    future, and EBITDA does not reflect any cash requirements for such
    replacements; and
  *Other companies in this industry may calculate EBITDA differently than NRG
    Yield does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of
discretionary cash available to use to invest in the growth of NRG Yield’s
business. NRG Yield compensates for these limitations by relying primarily on
our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See
the statements of cash flow included in the financial statements that are a
part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of operating
performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market
gains or losses, asset write offs and impairments; and factors which we do not
consider indicative of future operating performance. The reader is encouraged
to evaluate each adjustment and the reasons NRG Yield considers it appropriate
for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject
to all of the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG Yield may
incur expenses similar to the adjustments in this news release.

Cash available for distribution is adjusted EBITDA plus cash dividends from
unconsolidated affiliates, less maintenance capital expenditures, pro-rata
adjusted EBITDA from unconsolidated affiliates, cash interest paid, income
taxes paid, principal amortization of indebtedness and changes in others
assets. Management believes cash available for distribution is a relevant
supplemental measure of the Company’s ability to earn and distribute cash
returns to investors.

Contact:

NRG Yield, Inc.
Media:
Karen Cleeve, 609-524-4608
or
Michelle Tsai, 609-524-5324
or
Investors:
Chad Plotkin, 609-524-4526
 
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