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Revenues of
MW Deployed Growth of 63% Year-Over-Year
Cumulative 656 MW Deployed
First Quarter 2016 Operating Highlights
- Total deployments of 60 MW, an increase of 63% year-over-year.
Sunrun -built deployments grew 148% year-over-year. - Cumulative MW deployed of 656 MW.
- Pre-tax Project Value per watt was
$4.51 , flat with Q4 2015. - Pro forma Creation Cost (excluding one-time items related to
Nevada exit) per watt of$4.11 decreased$0.25 , or 6% year-over-year.
“The industry has reached a new milestone with one million solar homes underscoring the increasing power and relevance of rooftop solar in our energy future,” said
Key Operating Metrics
In the first quarter of 2016, total MW deployed increased to 60 MW from 37 MW in the first quarter of 2015, a 63% year-over-year increase.
Pre-tax project value per watt was
Pro forma net bookings (excluding cancellation of
Pro forma NPV created in the first quarter of 2016 was $20.6 million, compared to $23.3 million in the first quarter of 2015. Estimated nominal contracted payments remaining as of
Financing Activities
As of
First Quarter 2016 GAAP Results
Total revenue grew to
Total cost of revenue was
Net income attributable to common stockholders was
GAAP net earnings per share attributable to common shareholders was
Guidance for Q2 and Full Year 2016
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
For 2016, we expect deployments of approximately 285 MW but we will focus primarily on delivering NPV of above
In Q2, we expect to deploy approximately 60 MW.
Conference Call Information
About
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, operational and financial results such as growth, value creation, MW bookings and deployments, estimates of nominal contracted payments remaining, estimated retained value, project value, estimated creation costs and NPV, and the assumptions related to the calculation of the foregoing metrics, as well as our expectations regarding our growth and financing capacity. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: the availability of additional financing on acceptable terms; changes in the retail prices of traditional utility generated electricity; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our limited operating history, particularly as a new public company; our ability to attract and retain our relationships with third parties, including our solar partners; our ability to meet the covenants in our investment funds and debt facilities; and such other risks identified in the reports that we file with the
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In Thousands, Except Share Par Values) | ||||||||
| March 31, 2016 | December 31, 2015 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 208,313 | $ | 203,864 | ||||
| Restricted cash | 9,246 | 9,203 | ||||||
| Accounts receivable (net of allowances for doubtful accounts of $1,167 and $1,641 as of March 31, 2016 and December 31, 2015, respectively) |
56,774 | 60,275 | ||||||
| State tax credits receivable | — | 9,198 | ||||||
| Inventories | 94,682 | 71,258 | ||||||
| Prepaid expenses and other current assets | 13,903 | 5,917 | ||||||
| Total current assets | 382,918 | 359,715 | ||||||
| Restricted cash | 6,125 | 8,094 | ||||||
| Solar energy systems, net | 2,137,015 | 1,992,021 | ||||||
| Property and equipment, net | 51,897 | 44,866 | ||||||
| Intangible assets, net | 21,653 | 22,705 | ||||||
| Goodwill | 87,543 | 87,543 | ||||||
| Prepaid tax asset | 222,596 | 190,146 | ||||||
| Other assets | 31,833 | 29,502 | ||||||
| Total assets | $ | 2,941,580 | $ | 2,734,592 | ||||
| Liabilities and total equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 93,701 | $ | 104,133 | ||||
| Distributions payable to noncontrolling interests and redeemable noncontrolling interests |
7,368 | 8,144 | ||||||
| Accrued expenses and other liabilities | 53,826 | 49,146 | ||||||
| Deferred revenue, current portion | 65,820 | 59,726 | ||||||
| Deferred grants, current portion | 14,399 | 13,949 | ||||||
| Capital lease obligation, current portion | 10,890 | 8,951 | ||||||
| Long-term non-recourse debt, current portion | 5,591 | 4,722 | ||||||
| Lease pass-through financing obligation, current portion | 4,540 | 3,710 | ||||||
| Total current liabilities | 256,135 | 252,481 | ||||||
| Deferred revenue, net of current portion | 577,220 | 559,066 | ||||||
| Deferred grants, net of current portion | 216,176 | 220,784 | ||||||
| Capital lease obligation, net of current portion | 17,154 | 15,042 | ||||||
| Recourse debt | 191,000 | 197,000 | ||||||
| Long-term non-recourse debt, net of current portion | 436,196 | 333,042 | ||||||
| Lease pass-through financing obligation, net of current portion |
143,020 | 153,188 | ||||||
| Other liabilities | 8,863 | 7,144 | ||||||
| Deferred tax liabilities | 222,596 | 190,146 | ||||||
| Total liabilities | 2,068,360 | 1,927,893 | ||||||
| Redeemable noncontrolling interests | 138,049 | 147,139 | ||||||
| Stockholders’ equity | 565,793 | 554,069 | ||||||
| Noncontrolling interests | 169,378 | 105,491 | ||||||
| Total equity | 735,171 | 659,560 | ||||||
| Total liabilities, redeemable noncontrolling interests and total equity | $ | 2,941,580 | $ | 2,734,592 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenue: | ||||||||
| Operating leases and incentives | $ | 34,540 | $ | 22,308 | ||||
| Solar energy systems and product sales | 64,203 | 27,369 | ||||||
| Total revenue | 98,743 | 49,677 | ||||||
| Operating expenses: | ||||||||
| Cost of operating leases and incentives | 38,100 | 21,377 | ||||||
| Cost of solar energy systems and product sales | 57,512 | 25,330 | ||||||
| Sales and marketing | 43,188 | 24,926 | ||||||
| Research and development | 2,463 | 2,287 | ||||||
| General and administrative | 23,248 | 20,306 | ||||||
| Amortization of intangible assets | 1,052 | 542 | ||||||
| Total operating expenses | 165,563 | 94,768 | ||||||
| Loss from operations | (66,820 | ) | (45,091 | ) | ||||
| Interest expense, net | 11,515 | 7,130 | ||||||
| Other expenses (income), net | (532 | ) | 299 | |||||
| Loss before income taxes | (77,803 | ) | (52,520 | ) | ||||
| Income tax benefit | — | — | ||||||
| Net loss | (77,803 | ) | (52,520 | ) | ||||
| Net loss attributable to noncontrolling interests and redeemable noncontrolling interests |
(90,937 | ) | (34,525 | ) | ||||
| Net income (loss) attributable to common stockholders | $ | 13,134 | $ | (17,995 | ) | |||
| Net income (loss) per share attributable to common stockholders | ||||||||
| Basic | $ | 0.13 | $ | (0.74 | ) | |||
| Diluted | $ | 0.13 | $ | (0.74 | ) | |||
| Weighted average shares used to compute net income (loss) per share attributable to common stockholders |
||||||||
| Basic | 101,273 | 24,427 | ||||||
| Diluted | 104,219 | 24,427 | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (77,803 | ) | $ | (52,520 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Noncash losses | 1,321 | — | ||||||
| Depreciation and amortization, net of amortization of deferred grants | 21,596 | 15,429 | ||||||
| Bad debt expense | 336 | 457 | ||||||
| Interest on lease pass-through financing | 3,002 | 3,474 | ||||||
| Noncash interest expense | 3,502 | 2,635 | ||||||
| Stock-based compensation expense | 3,809 | 3,220 | ||||||
| Reduction in lease pass-through financing obligations | (4,236 | ) | (4,887 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 3,595 | (5,535 | ) | |||||
| Inventories | (23,314 | ) | (11,537 | ) | ||||
| Prepaid and other assets | (4,355 | ) | 5,069 | |||||
| Accounts payable | (10,103 | ) | 26,932 | |||||
| Accrued expenses and other liabilities | (317 | ) | 2,643 | |||||
| Deferred revenue | 5,572 | 12,304 | ||||||
| Net cash used in operating activities | (77,395 | ) | (2,316 | ) | ||||
| Investing activities: | ||||||||
| Payments for the costs of solar energy systems, leased and to be leased | (164,629 | ) | (131,291 | ) | ||||
| Purchases of property and equipment | (5,023 | ) | (1,947 | ) | ||||
| Net cash used in investing activities | (169,652 | ) | (133,238 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from grants and state tax credits, net of recapture | 9,202 | 5,153 | ||||||
| Proceeds from recourse debt | 141,000 | — | ||||||
| Repayment of recourse debt | (147,000 | ) | — | |||||
| Proceeds from issuance of non-recourse debt | 106,400 | — | ||||||
| Repayment of non-recourse debt | (2,160 | ) | (690 | ) | ||||
| Payment of debt fees | (9,369 | ) | — | |||||
| Proceeds from lease pass-through financing obligations | 9,746 | 35,130 | ||||||
| Contributions received from noncontrolling interests and redeemable noncontrolling interests | 154,944 | 59,341 | ||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (9,986 | ) | (7,521 | ) | ||||
| Proceeds from exercises of stock options, net of withholding taxes on restricted stock units | 452 | 1,058 | ||||||
| Offering costs paid related to initial public offering | (437 | ) | — | |||||
| Payment of capital lease obligation | (3,115 | ) | (602 | ) | ||||
| Change in restricted cash | 1,819 | (2,996 | ) | |||||
| Net cash provided by financing activities | 251,496 | 88,873 | ||||||
| Net increase (decrease) in cash | 4,449 | (46,681 | ) | |||||
| Cash, beginning of period | 203,864 | 152,154 | ||||||
| Cash, end of period | $ | 208,313 | $ | 105,473 | ||||
| Key Operating Metrics | |||||||||||||
| As of March 31, | |||||||||||||
| 2016 | 2015 | ||||||||||||
| MW Booked | 56 (1) | 38 | |||||||||||
| MW Deployed | 60 | 37 | |||||||||||
| Cumulative MW Deployed | 656 | 430 | |||||||||||
| Estimated Nominal Contracted Payments Remaining (in millions) | $ | 2,633 | $ | 1,713 | |||||||||
| Estimated Retained Value under Energy Contract (in millions) | $ | 1,115 | $ | 711 | |||||||||
| Estimated Retained Value of Purchase or Renewal (in millions) | $ | 518 | $ | 377 | |||||||||
| Estimated Retained Value (in millions) | $ | 1,633 | $ | 1,087 | |||||||||
| Estimated Retained Value (per watt) | $ | 2.36 | $ | 2.41 | |||||||||
| Three Months Ended March 31, |
|||||||||||||||
| 2016 | 2015 |
||||||||||||||
| Project Value (per watt) | $ | 4.51 | $ | 5.02 | |||||||||||
| Creation Cost (2) (per watt) | $ | 4.11 (3) | $ | 4.36 | |||||||||||
| Unlevered NPV (per watt) | $ | 0.40 | $ | 0.66 | |||||||||||
| NPV (in millions) | $ | 21 (3) | $ | 23 | |||||||||||
(1) Excludes 13 MW due to
(2) Excludes IDC costs paid prior to deployments and excludes non-cash items such as amortization of intangible assets and stock-based compensation.
(3) Excludes
Definitions
Creation Cost includes (i) certain installation and general and administrative costs after subtracting the gross margin on solar energy systems and product sales divided by watts deployed and (ii) certain sales and marketing expenses under new customer agreements, net of cancellations during the period divided by the related watts booked.
Customers refers to residential customers with solar energy systems that are installed or under contract to install, net of cancellations.
Estimated Nominal Contracted Payments Remaining equals the sum of the remaining cash payments that customers are expected to pay over the initial terms of their agreements (not including the value of any renewal or system purchase at the end of the initial agreement term), including estimated uncollected prepayments, for systems contracted as of the measurement date.
Estimated Retained Value represents the cash flows (discounted at 6%) we expect to receive pursuant to customer agreements during the initial agreement term, excluding substantially all value from solar renewable energy credits (“SRECs”) prior to
MW Booked represents the aggregate megawatt production capacity of our solar energy systems sold to customers or subject to an executed customer agreement, net of cancellations.
MW Deployed represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to customer agreements, for which we have (i) confirmation that the systems are installed on the roof, subject to final inspection or (ii) in the case of certain system installations by our partners, accrued at least 80% of the expected project cost.
NPV equals unlevered NPV multiplied by leased megawatts booked in period.
Project Value represents the value of upfront and future payments by customers, the benefits received from utility and state incentives, as well as the present value of net proceeds derived through investment funds. Project value is calculated as the sum of the following items (all measured on a per-watt basis with respect to megawatts deployed under customer agreements during the period): (i) estimated retained value, (ii) utility or upfront state incentives, (iii) upfront payments from customers for deposits and partial or full prepayments of amounts otherwise due under customer agreements and which are not already included in estimated retained value and (iv) finance proceeds from tax equity investors. Project value includes contracted SRECs. Project value does not include cash true-up payments or the value of asset contributions in lieu of cash true-up payments made to investment fund investors, the cumulative impact of which is expected to be immaterial in 2016.
Unlevered NPV equals the difference between project value and estimated creation cost on a per watt basis.
Investor Relations Contact:Charlotte Coultrap-Bagg Investors@sunrun.com (415) 510-4833