We define Adjusted EBITDA as profit/(loss) for the period attributable to the Company, after previously adding back loss/(profit) attributable to non-controlling interest, income tax, financial expense (net), depreciation, amortization and impairment charges of entities included in the consolidated financial statements and including depreciation and amortization, financial expense and income tax expense of unconsolidated affiliates (pro rata of our equity ownership).
CAFD is calculated as cash distributions received by the Company from its subsidiaries minus cash expenses of the Company, including debt service and general and administrative expenses. CAFD per share is calculated as CAFD divided by the weighted average number of outstanding ordinary shares of the Company during the period (116,161,185 for the nine-months ended on September 30, 2024, and 116,149,149 for the nine-months ended on September 30, 2023).
Our management believes Adjusted EBITDA, CAFD and CAFD per share are useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.
Our management believes CAFD and CAFD per share are relevant supplemental measurements of the Company's ability to earn and distribute cash returns to investors and are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make quarterly distributions. In addition, CAFD and CAFD per share are used by our management team for determining future acquisitions and managing our growth. Adjusted EBITDA, CAFD and CAFD per share are widely used by other companies in the same industry.
Our management uses Adjusted EBITDA, CAFD and CAFD per share as measures of operating performance to assist in comparing performance from period to period on a consistent basis moving forward. They also readily view operating trends as a measure for planning and forecasting overall expectations, for evaluating actual results against such expectations, and for communicating with our board of directors, shareholders, creditors, analysts and investors concerning our financial performance.
In our discussion of operating results, we have included foreign exchange impacts in our revenue and Adjusted EBITDA by providing constant currency growth. The constant currency presentation is not a measure recognized under IFRS and excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations. We calculate constant currency amounts by converting our current period local currency revenue and Adjusted EBITDA using the prior period foreign currency average exchange rates and comparing these adjusted amounts to our prior period reported results. This calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to substitute for recorded amounts presented in conformity with IFRS as issued by the IASB nor should such amounts be considered in isolation.
Information presented as the pro-rata share of our unconsolidated affiliates reflects our proportionate ownership of each asset in our property portfolio that we do not consolidate and has been calculated by multiplying our unconsolidated affiliates' financial statement line items by our percentage ownership thereto. Note 7 to our consolidated financial statements as of and for the nine-month period ended September 30, 2024 includes a description of our unconsolidated affiliates and our pro rata share thereof. We do not control the unconsolidated affiliates. Multiplying our unconsolidated affiliates' financial statement line items by our percentage ownership may not accurately represent the legal and economic implications of holding a non-controlling interest in an unconsolidated affiliate. We include pro-rata share of depreciation and amortization, financial expense and income tax expense of unconsolidated affiliates because we believe it assists investors in estimating the effect of such items in the profit/(loss) of associates carried under the equity method (which is included in the calculation of our Adjusted EBITDA) based on our economic interest in such unconsolidated affiliates. Each unconsolidated affiliate may report a specific line item in its financial statements in a different manner. In addition, other companies in our industry may calculate their proportionate interest in unconsolidated affiliates differently than we do, limiting the usefulness of such information as a comparative measure. Because of these limitations, the information presented as the pro-rata share of our unconsolidated affiliates should not be considered in isolation or as a substitute for our or such unconsolidated affiliates' financial statements as reported under applicable accounting principles.
Consolidated Statements of Operations
(Amounts in thousands of U.S. dollars)
For the three-month
period ended September For the nine-month period
30, ended September 30,
2024 2023 2024 2023
----------- -------- ---------- ---------
Revenue $ 347,549 $ 303,964 $ 918,744 $ 858,583
Other operating
income 34,786 16,923 91,616 57,402
Employee benefit
expenses (28,454) (26,516) (85,174) (76,051)
Depreciation,
amortization,
and impairment
charges (115,361) (103,384) (325,578) (310,502)
Other operating
expenses (108,540) (76,643) (291,943) (237,930)
Operating profit $ 129,980 $ 114,344 $ 307,665 $ 291,502
=========== ========= ========= =========
Financial income 5,004 6,824 16,320 17,414
Financial
expense (81,377) (80,138) (245,011) (243,083)
Net exchange
differences (2,708) (155) (5,700) (244)
Other financial
expense, net (9,299) (5,068) (20,319) (12,011)
Financial
expense, net $ (88,380) $ (78,537) $(254,710) $ (237,924)
=========== ========= ========= =========
Share of profit
of entities
carried under
the equity
method 262 (3,947) 15,122 6,905
Profit before
income tax $ 41,862 $ 31,860 $ 68,077 $ 60,483
=========== ========= ========= =========
Income tax (24,977) (13,755) (28,919) (11,587)
Profit for the
period $ 16,885 $ 18,105 $ 39,158 $ 48,896
=========== ========= ========= =========
(Profit)/Loss
attributable to
non-controlling
interests (242) 3,284 (6,482) (2,846)
Profit for the
period
attributable to
the Company $ 16,643 $ 21,389 $ 32,676 $ 46,050
=========== ========= ========= =========
Weighted average
number of
ordinary shares
outstanding
(thousands) 116,165 116,154 116,161 116,149
Weighted average
number of
ordinary shares
diluted
(thousands) 120,073 119,719 119,971 119,717
Basic earnings
per share (U.S.
dollar per
share) $ 0.14 $ 0.18 $ 0.28 $ 0.40
Diluted earnings
per share (U.S.
dollar per
share) $ 0.14 $ 0.18 $ 0.28 $ 0.40
Consolidated Statement of Financial Position
(Amounts in thousands of U.S. dollars)
As of September 30, As of December 31,
Assets 2024 2023
------------------- ------------------
Non-current assets
Contracted concessional
assets, PP&E and other
intangible assets $ 7,051,069 $ 7,204,267
Investments carried under
the equity method 212,052 230,307
Derivative assets 40,052 56,708
Other financial assets 75,006 79,874
Deferred tax assets 175,597 160,995
------------------- ------------------
Total non-current assets $ 7,553,776 $ 7,732,151
=================== ==================
Current assets
Inventories $ 38,059 $ 29,870
Trade and other
receivables 320,805 286,483
Derivative assets 2,800 4,989
Other financial assets 199,193 183,897
Cash and cash equivalents 434,559 448,301
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