NYSE$HASI

Hannon Armstrong Sustainable Infrastructure Capital Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Hannon Armstrong reported strong first quarter results, demonstrating resilience in an uncertain environment and reaffirming 2020 Core EPS guidance.

Hannon Armstrong announced its first quarter 2020 results, reporting $0.35 GAAP EPS and $0.43 Core EPS. The company reaffirmed its 2020 Core EPS guidance and raised $550 million in growth capital year-to-date.

  • Delivered $0.35 GAAP EPS on a fully diluted basis in Q1 2020, compared to $0.21 in Q1 2019.
  • Delivered $0.43 Core EPS on a fully diluted basis in Q1 2020, compared to $0.33 Core EPS in Q1 2019.
  • Reaffirmed guidance for 2020 Core EPS (pre-CECL provision) to exceed previously communicated midpoint of $1.43.
  • Reported a Portfolio Yield of 7.7% as of the end of Q1 2020, compared to 6.9% at the end of Q1 2019.

Headline financials

Total Revenue

$40.8M

Previous: $32.9M+24.1%
EPS (adj)

$0.44

Previous: $0.33+33.3%
Portfolio Yield

7.7%

Previous: 6.9%+11.6%
Managed Assets

$6B

No prior period
Free Cash Flow

$24.3M

Previous: $13.6M+78.1%
Net Income

$24.3M

Previous: $13.6M+78.1%
Operating Income

$35.3M

Previous: $28.1M+25.6%
Gross Profit

$40.8M

Previous: $32.9M+24.1%
Cash & Equivalents

$173M

Previous: $62.1M+178.7%
Total Assets

$2.52B

Previous: $2.19B+15.4%
Stock-Based Comp

$3.55M

Previous: $3.58M-0.8%

Revenue & EPS history

Hannon Armstrong · Revenue · Quarterly

$40.8M

Q1 2020+24.1%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Hannon Armstrong · $43.9M total across 2 segments · Q4 2021

  • Interest and Rental Income
    $30.5M
  • Gain on Sale of Assets
    $13.3M

Forward guidance

The Company expects that annual core earnings per share in 2020 will exceed the previously communicated guidance midpoint of $1.43 (on a pre- Topic 326 provision basis), reflecting 2018 to 2020 annual Core EPS growth above the midpoint of the 2% to 6% from the 2017 baseline.

Tailwinds

  • Yield on its existing Portfolio
  • Yield on incremental Portfolio investments, inclusive of the Company’s existing pipeline
  • The volume and profitability of securitization transactions
  • Amount, timing, and costs of debt and equity capital to fund new investments
  • Changes in costs and expenses reflective of the Company’s forecasted operations

Headwinds

  • The ongoing impact of the current outbreak of COVID-19
  • The general interest rate and market environment
  • Severity and duration of the outbreak domestically and internationally
  • Effectiveness of federal, state and local governments’ efforts to contain the spread of COVID-19
  • Direct and indirect impact on the U.S. economy and economic activity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.6%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+0.7%

Avg return

30 days after

67%

35 / 52 earnings

Positive

+23.1%

Q3 2023

Best reaction

-11.9%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-4.6%-9.2%
Q4 2025+10.8%+5.4%-1.2%
Q3 2025+12.4%+18.8%+17.1%
Q1 2025+0.2%+6.3%-1.4%
Q4 2024+0.3%+3.6%+4.1%
Q3 2024-11.3%-16.6%-3.5%
Q2 2024-5.0%-8.0%-1.2%
Q1 2024+16.8%+23.1%+22.0%
Q4 2023+7.2%+6.0%-0.1%
Q3 2023+23.1%+14.3%+43.6%
Q2 2023+2.0%-9.1%-3.8%
Q1 2023+1.0%-4.2%-4.1%
Q4 2022-5.2%-11.1%-33.8%
Q3 2022+7.1%+10.9%+23.9%
Q2 2022+5.9%+15.3%+0.3%
Q1 2022+5.6%-3.0%-3.4%
Q4 2021+6.3%+3.6%+10.4%
Q3 2021-0.2%-0.1%-11.0%
Q2 2021+0.6%+4.1%+4.3%
Q1 2021-7.9%-7.2%-7.1%
Q4 2020+3.2%-5.1%-13.1%
Q3 2020+10.3%+11.5%+23.6%
Q2 2020+3.7%+2.3%+9.5%
Q1 2020+6.9%+1.0%+8.2%
Q4 2019+3.5%+0.8%-53.9%
Q3 2019+1.2%+0.6%-0.5%
Q2 2019+0.2%-1.2%+0.7%
Q1 2019+2.4%+4.0%-2.6%
Q4 2018+1.8%+5.9%+6.7%
Q3 2018+5.5%+9.6%+10.1%
Q2 2018+0.4%+1.9%+11.2%
Q1 2018-3.6%-2.3%-6.1%
Q4 2017-11.9%-10.9%-10.3%
Q3 2017-3.1%-1.7%-0.6%
Q2 2017+1.8%+4.3%-0.3%
Q1 2017-1.8%-0.5%-0.2%
Q4 2016+3.2%+3.1%+1.0%
Q3 2016-7.1%-8.5%-13.3%
Q2 2016+2.3%+2.7%+11.3%
Q1 2016+2.6%
Q4 2015+1.2%
Q3 2015-4.6%
Q2 2015-6.5%
Q1 2015-0.1%
Q4 2014+4.5%
Q3 2014-1.2%
Q2 2014+6.4%
Q1 2014+1.6%
Q4 2013-1.8%
Q3 2013-5.6%
Q2 2013+0.8%
Q1 2013+0.9%
Q3 2012
Q2 2012
Q1 2012
Q4 2011

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