Hannon Armstrong Sustainable Infrastructure Capital ( NYSE: HASI ) rose 2.3% in after hours trading after responding to short seller Muddy Waters short report from Tuesday.
Hannon Armstrong ( HASI ) said it that believes that its accounting is fully compliant with GAAP and SEC regulations and is an accurate representation of its financial performance. HASI also said it has sufficient portfolio cash flow to pay its dividend.
Muddy Waters alleged in the short report on Tuesday that HASI's accounting is complex and that the company appears to inflate its GAAP earnings, though Muddy Waters founder Carson Block reiterated several times that HASI wasn't doing anything illegal. HASI shares plummeted 20% on the short report on Tuesday.
"We have sufficient portfolio cash flow to pay our dividend," HASI said in a statement. "The report assumes the non-cash earnings present in our financial statements result in a shortfall in the cash flow required to fund our dividend each year. This is absolutely false."
Hannon Armstrong ( HASI ) rose 2.7% in regular trading on Wednesday as several analysts came out to defend the company and urged investors to buy on weakness.
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Hannon Armstrong gains after rebutting claims from short report