OREANDA-NEWS.  InfraREIT, Inc. (NYSE: HIFR) ("InfraREIT" or the "Company") today reported financial results for the first quarter of 2016 and reaffirmed the Company's financial outlook.

InfraREIT reported the following first quarter 2016 financial highlights:

  • Net income was $8.8 million
  • Net income attributable to InfraREIT, Inc. common stockholders was $0.14 per share
  • Non-GAAP earnings per share (Non-GAAP EPS) was $0.31 per share
  • Cash available for distribution (CAD) was $19.3 million, or $0.32 per share
  • Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) was $38.1 million
  • Quarterly dividend declared of $0.25 per share of common stock, $1.00 per share annualized

Reaffirmed guidance:

  • Non-GAAP EPS range of $1.15 to $1.25 for 2016
  • CAD per share range of $1.15 to $1.25 for 2016
  • Dividend/distributions per share of $1.00 for 2016
  • Capital expenditure range of $640 million to $740 million for the period of 2016 through 2018
  • Three-year compound annual growth rate (CAGR) range of dividends per share of 8 percent to 10 percent for 2015 through 2018
  • Targeted dividend per share payout ratio of 80 percent to 90 percent of CAD

Regulatory update:

  • InfraREIT's tenant, Sharyland Utilities, L.P. (Sharyland), filed a system-wide rate case with the Public Utility Commission of Texas (PUCT) on April 29, 2016

"InfraREIT continues to deliver on its core plan for growth," said David A. Campbell, Chief Executive Officer of InfraREIT.  "We remain focused on investing to serve the infrastructure needs of our high-growth service territories and to further enhance system reliability and dependability."

"Our tenant's 2016 rate case reflects and addresses the dynamic markets that Sharyland serves," said Campbell.  "We believe the investments outlined in the case are prudent and necessary, and that a successful outcome to this case will enable Sharyland to continue providing safe and reliable service to the communities it serves."

Favorable Results in First Quarter 2016

Lease revenue, consisting only of base rent, increased approximately 15 percent to $33.7 million for the three months ended March 31, 2016, compared to the same period in 2015.  There was no percentage rent recognized during the first quarter of 2016 or 2015 as Sharyland's revenue did not exceed the annual specified breakpoints under the Company's leases.  The Company anticipates that revenue will grow over the year with little to no percentage rent recognized in the first and second quarters of each year with the largest amounts recognized during the third and fourth quarters of each year.

Net income was $8.8 million in the first quarter of 2016, compared to a net loss of $35.9 million in the first quarter of 2015.

Non-GAAP EPS was $0.31 per share for the first quarter of 2016 and $0.33 per share for the same period in 2015.  Non-GAAP EPS during the quarter ended March 31, 2016 was based on 60.6 million weighted average shares outstanding compared to 55.0 million weighted average shares outstanding during the same period of 2015.

In the first quarter of 2016, CAD was $19.3 million, or $0.32 per share, compared to $18.3 million, or $0.30 per share, in the same period in 2015.  Beginning with the quarter ended March 31, 2016, the Company changed the share amount used for the CAD per share calculation from an outstanding share amount as of the end of the respective time period to the weighted average shares outstanding during the respective time period, in order to be consistent with the Company's other per share calculations. Accordingly, CAD per share was based on weighted average shares outstanding of 60.6 million during the first quarter of 2016, compared to 60.6 million shares outstanding as of March 31, 2015.  CAD per share calculations prior to March 31, 2016 will continue to be presented based on the Company's historical method of calculation and, therefore, may not be comparable to CAD per share amounts calculated on a weighted average basis.

Adjusted EBITDA was $38.1 million in the first quarter of 2016, an increase of 11 percent, compared to $34.4 million in the same period in 2015.  Funds from Operations (FFO) was $19.9 million for the first quarter of 2016, compared to ($26.4) million from the same period in 2015.  For the first quarter of 2016, FFO on an adjusted basis (AFFO) was $29.1 million, an increase of 9 percent, compared to $26.8 million in the same period in 2015.

Liquidity and Capital Resources

As of March 31, 2016, the Company had $13.4 million of unrestricted cash and cash equivalents and $325 million of unused capacity under its revolving credit facilities.  On January 14, 2016, an InfraREIT subsidiary, Sharyland Distribution & Transmission, L.L.C. (SDTS), issued $100 million in 10-year senior secured notes, 3.86 percent per annum, series B, due January 14, 2026.  This completed the private placement funding of the $500 million of senior secured notes announced on December 3, 2015.  The proceeds received from the January 2016 issuance of the series B notes were used to repay the Company's outstanding balances on the SDTS revolving credit facility and for general operating purposes.

Outlook and Guidance

Non-GAAP EPS and CAD per share are estimated in the range of $1.15 to $1.25 for 2016.  Reconciliations of the Company's forecasted GAAP net income attributable to InfraREIT, Inc. per share to Non-GAAP EPS and CAD per share for the year ending December 31, 2016 are included in the Schedules at the end of this press release.

The Company estimates footprint capital expenditures in the following ranges over the next three years: $220 million to $240 million for 2016; $250 million to $280 million for 2017; and $170 million to $220 million for 2018.  The Company anticipates that footprint capital expenditures will enable a projected CAGR range in dividends per share of 8 percent to 10 percent from 2015 through 2018, with a targeted payout ratio of 80 percent to 90 percent of CAD.

The Company's consolidated debt profile continues to target debt as a percentage of total capitalization at or below 60 percent and AFFO-to-debt of at least 12 percent.

The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items.

Dividends and Distributions

On March 2, 2016, InfraREIT's board of directors declared a cash distribution by InfraREIT's operating partnership to all unit holders of record, including InfraREIT, on March 31, 2016 of $0.25 per unit for a total distribution of $15.2 million ($10.9 million to InfraREIT).  Also, on March 2, 2016, InfraREIT's board of directors declared a cash dividend to stockholders of record of InfraREIT on March 31, 2016, of $0.25 per share for a total of $10.9 million.  The cash distribution and cash dividend were paid on April 21, 2016.

InfraREIT's Tenant's Rate Case

On April 29, 2016, InfraREIT's tenant, Sharyland, filed a system-wide rate case with the PUCT to review and set regulatory transmission and delivery rates.  Sharyland is responsible for regulatory compliance and reporting requirements related to InfraREIT's assets.  Sharyland's 2016 rate case, PUCT Docket No. 45414, addresses conditions required by its 2013 rate case: the review of all invested capital subsequent to the test year ended December 31, 2012; the consolidation of two existing tariffs (the tariff for the Stanton, Brady and Celeste service territories and the tariff for the McAllen service territory); and the proposal and support of "cost-based rates."

In Sharyland's rate case filing it requested an allowed return on common equity (ROE) of 10.0 percent and maintaining its current capital structure of 55 percent for debt and 45 percent for equity.  Sharyland also requested a reduction in cost of debt to 4.97 percent, down from 6.73 percent.  The timing and outcome of Sharyland's rate case is uncertain at this time.

First Annual Stockholders Meeting

InfraREIT's first Annual Meeting of Stockholders will be held on Wednesday, May 18, 2016, at 11:00 a.m. U.S. Central, at the Fairmont Hotel, 1717 North Akard Street, Dallas, Texas 75201.  The board of directors established Monday, March 14, 2016, as the record date for determining stockholders entitled to vote at the Annual Meeting, in-person or by proxy.

InfraREIT, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)
(Unaudited)
 
   

Three Months Ended March 31,

  
   

2016

    

2015

  

Lease revenue

                

Base rent

  

$

33,665

    

$

29,372

  

Percentage rent

    

—

      

—

  

Total lease revenue

    

33,665

      

29,372

  

Operating costs and expenses

                

General and administrative expense

    

5,545

      

48,733

  

Depreciation

    

11,074

      

9,508

  

Total operating costs and expenses

    

16,619

      

58,241

  

Income (loss) from operations

    

17,046

      

(28,869)

  

Other (expense) income

                

Interest expense, net

    

(8,842)

      

(7,422)

  

Other income, net

    

759

      

626

  

Total other expense

    

(8,083)

      

(6,796)

  

Income (loss) before income taxes

    

8,963

      

(35,665)

  

Income tax expense

    

186

      

208

  

Net income (loss)

    

8,777

      

(35,873)

  

Less: Net income (loss) attributable to noncontrolling interest

    

2,462

      

(9,000)

  

Net income (loss) attributable to InfraREIT, Inc.

  

$

6,315

    

$

(26,873)

  

Net income (loss) attributable to InfraREIT, Inc. common stockholders per share:

                

Basic

  

$

0.14

    

$

(0.65)

  

Diluted

  

$

0.14

    

$

(0.65)

  

Cash dividends declared per common share

  

$

0.25

    

$

0.40

  

Weighted average common shares outstanding (basic shares)

    

43,570

      

41,204

  

Redemption of operating partnership units

    

—

      

—

  

Weighted average dilutive shares outstanding (diluted shares)

    

43,570

      

41,204

  

Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments:

                

Net income (loss) attributable to noncontrolling interest

  

$

2,462

    

$

(9,000)

  

Redemption of operating partnership units

    

17,057

      

13,801

  

InfraREIT, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
   

March 31, 2016

    

December 31, 2015

  
   

(Unaudited)

          

Assets

                

Current Assets

                

Cash and cash equivalents

  

$

13,416

    

$

9,471

  

Restricted cash

    

1,682

      

1,682

  

Due from affiliates

    

25,534

      

31,172

  

Inventory

    

6,874

      

6,731

  

Prepaids and other current assets

    

1,389

      

560

  

Total current assets

    

48,895

      

49,616

  

Electric Plant, net

    

1,482,508

      

1,434,531

  

Goodwill

    

138,384

      

138,384

  

Other Assets

    

40,633

      

40,979

  

Total Assets

  

$

1,710,420

    

$

1,663,510

  

Liabilities and Equity

                

Current Liabilities

                

Accounts payable and accrued liabilities

  

$

27,417

    

$

22,943

  

Short-term borrowings

    

—

      

54,000

  

Current portion of long-term debt

    

7,527

      

7,423

  

Dividends and distributions payable

    

15,157

      

13,634

  

Accrued taxes

    

3,497

      

3,312

  

Total current liabilities

    

53,598

      

101,312

  

Long-Term Debt, Less Deferred Financing Costs

    

715,392

      

617,305

  

Regulatory Liability

    

13,250

      

10,625

  

Total liabilities

    

782,240

      

729,242

  

Commitments and Contingencies

                

Equity

                

Common stock, $0.01 par value; 450,000,000 shares authorized; 43,570,230 and 43,565,495 issued and outstanding as of March 31, 2016 and December 31, 2015, respectively

    

436

      

436

  

Additional paid-in capital

    

702,302

      

702,213

  

Accumulated deficit

    

(29,103)

      

(24,526)

  

Total InfraREIT, Inc. equity

    

673,635

      

678,123

  

Noncontrolling interest

    

254,545

      

256,145

  

Total equity

    

928,180

      

934,268

  

Total Liabilities and Equity

  

$

1,710,420

    

$

1,663,510

  

InfraREIT, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
   

Three Months Ended March 31,

  
   

2016

    

2015

  

Cash flows from operating activities

                

Net income (loss)

  

$

8,777

    

$

(35,873)

  

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

                

Depreciation

    

11,074

      

9,508

  

Amortization of deferred financing costs

    

1,003

      

912

  

Allowance for funds used during construction - equity

    

(759)

      

(548)

  

Reorganization structuring fee

    

—

      

44,897

  

Realized gain on sale of marketable securities

    

—

      

(66)

  

Equity based compensation

    

292

      

123

  

Changes in assets and liabilities:

                

Due from affiliates

    

5,638

      

6,783

  

Inventory

    

(143)

      

(115)

  

Prepaids and other current assets

    

(829)

      

(1,026)

  

Accounts payable and accrued liabilities

    

7,487

      

584

  

Net cash provided by operating activities

    

32,540

      

25,179

  

Cash flows from investing activities

                

Additions to electric plant

    

(58,495)

      

(67,210)

  

Proceeds from sale of assets

    

—

      

41,211

  

Sale of marketable securities

    

—

      

1,065

  

Cash paid to InfraREIT, L.L.C. investors in the merger, net of cash assumed

    

—

      

(172,400)

  

Net cash used in investing activities

    

(58,495)

      

(197,334)

  

Cash flows from financing activities

                

Net proceeds from issuance of common stock upon initial public offering

    

—

      

493,722

  

Proceeds from short-term borrowings

    

—

      

33,000

  

Repayments of short-term borrowings

    

(54,000)

      

(253,000)

  

Proceeds from borrowings of long-term debt

    

100,000

      

—

  

Repayments of long-term debt

    

(1,817)

      

(4,772)

  

Deferred financing costs

    

(649)

      

(49)

  

Dividends and distributions paid

    

(13,634)

      

(25,842)

  

Net cash provided by financing activities

    

29,900

      

243,059

  

Net increase in cash and cash equivalents

    

3,945

      

70,904

  

Cash and cash equivalents at beginning of period

    

9,471

      

15,612

  

Cash and cash equivalents at end of period

  

$

13,416

    

$

86,516

  

Non-GAAP Measures

Schedule 1
InfraREIT, Inc.
Explanation and Reconciliation of Non-GAAP EPS

Non-GAAP EPS
InfraREIT defines non-GAAP net income as net income (loss) adjusted in a manner the Company believes is appropriate to show its core operational performance, including: (a) adding back the non-cash reorganization structuring fee, (b) adding back the reorganization expense related to the Company's IPO and related reorganization transactions, (c) adding back the expense related to the contingent consideration issued as deemed capital credits, (d) a quarterly, not annual, adjustment for the difference between the amount of percentage rent payments that the Company expects to receive with respect to the applicable period and the amount of percentage rent the Company recognizes under GAAP during the period and (e) an adjustment for the difference between the amount of base rent payments that the Company receives with respect to the applicable period and the amount of straight-line base rent recognized under GAAP.  The Company defines Non-GAAP EPS as non-GAAP net income (loss) divided by the weighted average shares outstanding calculated in the manner described in the footnotes below.

The following sets forth a reconciliation of net income (loss) attributable to InfraREIT, Inc. per diluted share to Non-GAAP EPS per share:

   

Three Months Ended March 31, 2016

    

Three Months Ended March 31, 2015

(In thousands, except share amounts, unaudited)

  

Amount

    

Per Share (3)

    

Amount

    

Per Share (4)

Net income (loss) attributable to InfraREIT, Inc.

  

$

6,315

    

$

0.15

    

$

(26,873)

    

$

(0.65)

Net income (loss) attributable to noncontrolling interest

    

2,462

      

0.14

      

(9,000)

      

(0.65)

Net income (loss)

    

8,777

      

0.15

      

(35,873)

      

(0.65)

Non-cash reorganization structuring fee

    

—

      

—

      

44,897

      

0.82

Reorganization expenses

    

—

      

—

      

333

      

—

Percentage rent adjustment (1)

    

6,990

      

0.11

      

6,464

      

0.12

Base rent adjustment (2)

    

3,035

      

0.05

      

2,063

      

0.04

Non-GAAP net income

  

$

18,802

    

$

0.31

    

$

17,884

    

$

0.33
   

(1)

Represents the difference between the amount of percentage rent payments and the amounts recognized during the applicable period, if any.  Although the Company receives percentage rent payments related to each quarter, it does not recognize lease revenue related to these percentage rent payments until the Company's tenant's annual gross revenues exceed minimum specified annual breakpoints under the leases.

(2)

This adjustment relates to the difference between the timing of cash base rent payments made under the Company's leases and when the Company recognizes base rent revenue under GAAP.  The Company recognizes base rent on a straight-line basis over the applicable term of the lease commencing when the related assets are placed in service, which is frequently different than the period in which the cash base rent becomes due.

(3)

The weighted average common shares outstanding of 43.6 million was used to calculate net income attributable to InfraREIT, Inc. per diluted share.  The weighted average redeemable partnership units outstanding of 17.0 million was used to calculate net income attributable to noncontrolling interest per share. The combination of the weighted average common shares and redeemable partnership units outstanding of 60.6 million was used for the remainder of the per share calculations for the three months ended March 31, 2016.

(4)

The weighted average common shares outstanding of 41.2 million was used to calculate net loss attributable to InfraREIT, Inc. per diluted share.  The weighted average redeemable partnership units outstanding of 13.8 million was used to calculate net loss attributable to noncontrolling interest per share.  The combination of the weighted average common shares and redeemable partnership units outstanding of 55.0 million was used for the remainder of the per share calculations for the three months ended March 31, 2015.

Schedule 2
InfraREIT, Inc.
Explanation and Reconciliation of CAD

CAD
The Company defines CAD in a manner that it believes is appropriate to show its core operational performance, which includes a deduction of the portion of capital expenditures needed to maintain its net assets which equals depreciation expense within the applicable period.  The portion of the capital expenditures in excess of depreciation, which the Company refers to as growth capital expenditures, will increase the Company's net assets.  The CAD calculation also includes various other adjustments from net income, as outlined below and described in more detail on Schedules 1, 3 and 4.

The following sets forth a reconciliation of net income (loss) to CAD:

   

Three Months Ended March 31,

    

(In thousands, except share amounts, unaudited)

  

2016

      

2015

    

Net income (loss)

  

$

8,777

      

$

(35,873)

    

Depreciation

    

11,074

        

9,508

    

Non-cash reorganization structuring fee

    

—

        

44,897

    

Percentage rent adjustment (1)

    

6,990

        

6,464

    

Base rent adjustment (2)

    

3,035

        

2,063

    

Amortization of deferred financing costs

    

1,003

        

912

    

Reorganization expenses

    

—

        

333

    

Non-cash equity compensation

    

292

        

123

    

Other income, net (3)

    

(759)

        

(626)

    

Capital expenditures to maintain net assets

    

(11,074)

        

(9,508)

    

CAD

  

$

19,338

      

$

18,293

    

Shares (mm of shares) (4)

    

60.6

  

(5)

    

60.6

  

(6)

CAD per share

  

$

0.32

      

$

0.30

    
   

(1)

See footnote (1) on Schedule 1 on Explanation and Reconciliation on Non-GAAP EPS

(2)

See footnote (2) on Schedule 1 on Explanation and Reconciliation on Non-GAAP EPS

(3)

Includes allowance for funds used during construction (AFUDC) on other funds of $0.8 million and $0.5 million for the three months ended March 31, 2016 and 2015, respectively.

(4)

As of March 31, 2016, the Company changed the share amount from an outstanding share amount at the end of the respective time period to the weighted average shares outstanding during the respective time period to be consistent with the Company's other per share calculations.  Calculations prior to March 31, 2016 will continue using the shares outstanding at the end of the respective time period.

(5)

Consists of 43.6 million weighted average common shares outstanding and 17.0 million weighted average redeemable partnership units outstanding as of March 31, 2016.

(6)

Consists of 43.6 million outstanding shares and 17.0 million redeemable partnership units outstanding as of March 31, 2015.

Schedule 3
InfraREIT, Inc.
Explanation and Reconciliation of EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA
InfraREIT defines EBITDA as net income (loss) before interest expense, net; income tax expense; depreciation and amortization.  Adjusted EBITDA is defined as EBITDA adjusted in a manner the Company believes is appropriate to show its core operational performance, including: (a) adding back the non-cash reorganization structuring fee, (b) a quarterly, not annual, adjustment for the difference between the amount of percentage rent payments that the Company expects to receive with respect to the applicable period and the amount of percentage rent the Company recognizes under GAAP during the period, (c) an adjustment for the difference between the amount of base rent payments that the Company receives with respect to the applicable period and the amount of straight-line base rent recognized under GAAP, (d) adding back the reorganization expense related to the Company's IPO and related reorganization transactions and (e) adjusting for other income (expense), net.

The following sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:

   

Three Months Ended March 31,

  

(In thousands, unaudited)

  

2016

    

2015

  

Net income (loss)

  

$

8,777

    

$

(35,873)

  

Interest expense, net

    

8,842

      

7,422

  

Income tax expense

    

186

      

208

  

Depreciation

    

11,074

      

9,508

  

EBITDA

    

28,879

      

(18,735)

  

Non-cash reorganization structuring fee

    

—

      

44,897

  

Percentage rent adjustment (1)

    

6,990

      

6,464

  

Base rent adjustment (2)

    

3,035

      

2,063

  

Reorganization expenses

    

—

      

333

  

Other income, net (3)

    

(759)

      

(626)

  

Adjusted EBITDA

  

$

38,145

    

$

34,396

  
   

(1)

See footnote (1) on Schedule 1 on Explanation and Reconciliation of Non-GAAP EPS

(2)

See footnote (2) on Schedule 1 on Explanation and Reconciliation of Non-GAAP EPS

(3)

See footnote (3) on Schedule 2 on Explanation and Reconciliation of CAD

Schedule 4
InfraREIT, Inc.
Explanation and Reconciliation of FFO and AFFO

FFO and AFFO
The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (computed in accordance with GAAP), excluding gains and losses from sales of property (net) and impairments of depreciated real estate, plus real estate depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.  Applying the NAREIT definition to the Company's consolidated financial statements, which is the basis for the FFO presented in this press release and the reconciliations below, results in FFO representing net income (loss) before depreciation, impairment of assets and gain (loss) on sale of assets.  FFO does not represent cash generated from operations as defined by GAAP and it is not indicative of cash available to fund all cash needs, including distributions.

AFFO is defined as FFO adjusted in a manner the Company believes is appropriate to show its core operational performance, including: (a) adding back the non-cash reorganization structuring fee, (b) a quarterly, not annual, adjustment for the difference between the amount of percentage rent payments that the Company expects to receive with respect to the applicable period and the amount of percentage rent the Company recognizes under GAAP during the period, (c) an adjustment for the difference between the amount of base rent payments that the Company receives with respect to the applicable period and the amount of straight-line base rent recognized under GAAP, (d) adding back the reorganization expense related to the Company's IPO and related reorganization transactions and (e) adjusting for other income (expense), net.

The following table sets forth a reconciliation of net income (loss) to FFO and AFFO:

   

Three Months Ended March 31,

  

(In thousands, unaudited)

  

2016

    

2015

  

Net income (loss)

  

$

8,777

    

$

(35,873)

  

Depreciation

    

11,074

      

9,508

  

FFO

    

19,851

      

(26,365)

  

Non-cash reorganization structuring fee

    

—

      

44,897

  

Percentage rent adjustment (1)

    

6,990

      

6,464

  

Base rent adjustment (2)

    

3,035

      

2,063

  

Reorganization expenses

    

—

      

333

  

Other income, net (3)

    

(759)

      

(626)

  

AFFO

  

$

29,117

    

$

26,766

  
   

(1)

See footnote (1) on Schedule 1 on Explanation and Reconciliation of Non-GAAP EPS

(2)

See footnote (2) on Schedule 1 on Explanation and Reconciliation of Non-GAAP EPS

(3)

See footnote (3) on Schedule 2 on Explanation and Reconciliation of CAD

Schedule 5
InfraREIT, Inc.
Explanation and Reconciliation of Forecasted Guidance for 2016

Forecasted GAAP net income attributable to InfraREIT, Inc. per share to Non-GAAP EPS and CAD per share
The Company provides yearly guidance for the supplemental financial measures it uses in evaluating the Company's operating performance. These metrics include:  Non-GAAP EPS and CAD per share.  The financial measures help the Company and investors better understand the Company's business, performance and ability to earn and distribute cash to stockholders by providing perspectives not immediately apparent from net income.

The following table sets forth a reconciliation of the forecasted GAAP net income attributable to InfraREIT, Inc. per share to Non-GAAP EPS and CAD per share for the year ending December 31, 2016.

   

Full Year 2016

  

(per share amounts, unaudited)

  

Low

    

High

  

Net income attributable to InfraREIT, Inc.

  

$

1.02

    

$

1.12

  

Net income attributable to noncontrolling interest

    

1.02

      

1.12

  

Net income

    

1.02

      

1.12

  

Base rent adjustment

    

0.13

      

0.13

  

Non-GAAP net income

    

1.15

      

1.25

  

Depreciation

    

0.81

      

0.81

  

Amortization of deferred financing costs

    

0.03

      

0.03

  

Non-cash equity compensation

    

0.01

      

0.01

  

Other income, net

    

(0.04)

      

(0.04)

  

Capital expenditures to maintain net assets

    

(0.81)

      

(0.81)

  

CAD

  

$

1.15

    

$

1.25