SINO GAS & ENERGY HOLDINGS LIMITED CONFIDENTIAL
First Quarter 2020
Earnings
May 14, 2020 | sunnova.com |
Legal Disclaimer
- This presentation and the accompanying oral presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this presentation include, but are not limited to, statements regarding Sunnova's future customer growth rate, future contracted customer value, future financial and operating performance, including its outlook and guidance, demand for Sunnova's products and services, future financing and ability to raise capital therefrom, maintenance and growth of our dealer network and the future of solar energy and energy storage services. Sunnova's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, our competition, fluctuations in the solar and home-building markets, our ability to attract and retain dealers and customers and our dealer and strategic partner relationships. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those more fully described in Sunnova's filings with the Securities and Exchange Commission, including Sunnova's annual report on Form 10-K for the year ended December 31, 2019. The forward-looking statements in this presentation are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law.
- In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation and the accompanying oral presentation include certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Operating Cash Flow and Adjusted Operating Expense. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have limitations as analytical tools, and they should not be considered in isolation or as a substitute for analysis of other GAAP financial measures. Adjusted EBITDA and Adjusted Operating Expense are non-GAAP financial measures that help management, investors and securities analysts in evaluating Sunnova's performance. These measurements are not recognized in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. The GAAP measures most directly comparable to Adjusted EBITDA and Adjusted Operating Expense are net income/loss and total operating expense, respectively. Adjusted Operating Cash Flows is a non-GAAP measure that helps management, investors and analysts in evaluating Sunnova's liquidity and ability to service its contractual obligations. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of liquidity. The GAAP measure most directly comparable to Adjusted Operating Cash Flow is net cash used in operating activities. Adjusted EBITDA, Adjusted Operating Cash Flows and Adjusted Operating Expense have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of Sunnova's results as reported under GAAP. In addition, Adjusted EBITDA, Adjusted Operating Cash Flow and Adjusted Operating Expense are not necessarily comparable to Adjusted EBITDA, Adjusted Operating Cash Flow or Adjusted Operating Expense as calculated by other companies. Reconciliations of each of these measures to their most directly comparable GAAP measure are included in the appendix to this presentation for historical periods. Sunnova is unable to reconcile projected Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash Flow to the most comparable financial measures calculated in accordance with GAAP because of fluctuations in interest rates and their impact on our unrealized and realized interest rate hedge gains or losses. Sunnova provides a range for the forecasts of Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash Flow to allow for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliation of projected Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash Flow to projected net income (loss), total operating expense, or net cash provided by (used in) operating activities, as the case may be, is not available without unreasonable effort.
- This presentation includes operational metrics such as number of customers, weighted average number of customers and estimated net and gross contracted customer value. These operational metrics are not necessarily comparable to the same or similar metrics as calculated by other companies.
- This presentation and the accompanying oral presentation also contain market data, statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to such information. Some data are also based on Sunnova's good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although Sunnova believes these sources are reliable, we have not independently verified the accuracy or completeness of the information contained in the industry publications and other publicly available information. Accordingly, Sunnova makes no representations as to the accuracy or completeness of that information nor do we undertake to update such information after the date of this presentation.
2
Accelerating Growth Rates
85.4K Customers as of 3/31/2020
- Approximately 6,800 customers added in Q1 2020
- Rate of customer acquisition more than doubled to 107% in Q1 2020 vs Q1 2019
191 Dealers and
Sub-Dealers as of
3/31/2020
- Up from a total dealer and sub-dealer count of 155 at 12/31/2019
30% Storage
Attachment Rate in
Q1 2020(1)
- Up from Q4 2019 attachment rate of 24%
- Penetration rate of storage in customer base is 4.4% at 3/31/2020
3
1. Attachment rate on origination
Financial Results
$6.2 Million | $10.8 Million |
Q1 2020 Adjusted EBITDA(1) | Q1 2020 Principal(2) and Interest |
Payments Received on Solar Loans
$(20.1) Million | $2.0 Billion |
Q1 2020 Adjusted Operating Cash | Estimated Gross Contracted Customer |
Flow(1) | Value at 3/31/2020 Discounted at 6% |
4 | 1. | Adjusted EBITDA and Adjusted Operating Cash Flows are non-GAAP financial measures. Please see the Appendix for a reconciliation to the most directly comparable GAAP measure |
2. | Net of amounts recorded in revenue | |
Customer Growth Driving Changes in Financial Profile
Total Customers (000s) | Adjusted EBITDA(1) and P(2) & I ($M) | ||||||||||||||
85.4 | Adj. EBITDA | Interest | Principal | ||||||||||||
$6.4 | |||||||||||||||
63.6 | $3.4 | ||||||||||||||
49.8 | $2.3 | $4.4 | |||||||||||||
$1.3 | |||||||||||||||
$1.1 | $8.1 | $6.2 | |||||||||||||
$4.6 | |||||||||||||||
3/31/2018 | 3/31/2019 | 3/31/2020 | |||||||||||||
Q1 2018 | Q1 2019 | Q1 2020 | |||||||||||||
Battery Attachment Rate at Origination | Adjusted Operating Cash Flow(1) ($M) | ||||||||||||||
30% | ||||||
24% | ||||||
($16.0) | ($15.9) | |||||
15% | ($20.1) | |||||
11% | ||||||
Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q1 2018 | Q1 2019 | Q1 2020 |
5 | 1. | Adjusted EBITDA and Adjusted Operating Cash Flows are non-GAAP financial measures. Please see the Appendix for a reconciliation to the most directly comparable GAAP measure |
2. | Net of amounts recorded in revenue | |
Escalating Contracted Customer Value
Estimated Net Contracted | Estimated Gross Contracted |
Customer Value ($M) | Customer Value ($M) |
$1,492
$1,211$1,270
$861 | $952 | $895 | |
$641 | $709 | ||
$2,351
$2,035
$1,827
$1,568
3/31/2018 | 3/31/2019 | 3/31/2020 | 3/31/2018 | 3/31/2019 | 3/31/2020 | ||||||||
6% | Discount Rate | 4% Discount Rate | 6% | Discount Rate | 4% Discount Rate | ||||||||
Creating shareholder value by growing high quality, long-term contracted revenues
6
Financial Highlights
Key Financial Update
Three Months Ended March 31
$ millions
Key Financial Results | 2020 | 2019 | 2018 |
Revenue | $29.8 | $26.7 | $19.8 |
Adjusted Operating Expense(1) | $23.6 | $18.6 | $15.2 |
Adjusted EBITDA(1) | $6.2 | $8.1 | $4.6 |
Loan Principal Payments Received(2) | $6.4 | $3.4 | $1.3 |
Loan Interest Payments Received | $4.4 | $2.3 | $1.1 |
Adjusted Operating Cash Flow(1) | $(20.1) | $(15.9) | $(16.0) |
$ millions | 3/31/2020 | 3/31/2019 | 3/31/2018 |
Est. Gross Contracted Customer Value (6% discount rate) | $2,035 | $1,568 | $1,270 |
Est. Gross Contracted Customer Value (4% discount rate) | $2,351 | $1,827 | $1,492 |
Est. Net Contracted Customer Value (6% discount rate) | $895 | $709 | $641 |
Est. Net Contracted Customer Value (4% discount rate) | $1,211 | $952 | $861 |
8 | 1. | Adjusted Operating Expense, Adjusted EBITDA, and Adjusted Operating Cash Flow are non-GAAP financial measures. Please see the Appendix for a reconciliation to the most directly comparable GAAP measure |
2. | Net of amounts recorded in revenue | |
2020 Financing Activity
2020 Selected Accomplishments YTD ($M)
Feb | 2020-1 Securitization | $412.5 |
Feb | TPO Warehouse | $50 |
Feb | Tax Equity | $75 |
Mar | TPO Warehouse | $200 |
May | Tax Equity | $75 |
May | Convertible Debt | $190(1) |
Cash ($M)
3/31/2020 | 12/31/2019 | |
Cash | $73.4 | $83.5 |
Restricted Cash | $95.8 | $66.8 |
Total Cash | $169.2 | $150.3 |
1. Up to $190 million. On May 13, 2020, Sunnova closed on a $130 million senior unsecured convertible note facility which included a 30-day option in which the investors may purchase up to $60 million in additional notes
9
Guidance and Key Takeaways
Customer Additions
28,000 - 30,000
Adjusted EBITDA(1)
$58 - $62 Million
Principal Payments Received from Solar Loans(2)
$32 - $36 Million
Interest Payments Received from Solar Loans
$17 - $21 Million
Adjusted Operating Cash Flow(1)
$10 - $20 Million
2020 Guidance Reaffirmed
11
1. Adjusted EBITDA and Adjusted Operating Cash Flow are non-GAAP financial measures.
2. Net of amounts recorded in revenue
2020 Projected Cash Proceeds(1)
Cash Flow from Existing | Cash Proceeds: After Growth |
Operations | Investments and Financing |
$5 - $15 million | $85 - $105 million |
Represents Adjusted Operating Cash Flow(2) | Represents new investment in our customer |
less corporate capital expenditures | base, asset and corporate level financing, |
securitizations, interest rate hedge cashflows,
and debt amortization
Sunnova raised corporate capital of up to $190 million at accretive terms in order to provide the
liquidity needed to continue its strong growth and be fully prepared for any further market disruptions
12 | 1. | We believe this view of cash flow can be useful to investors as a measure of cash generated (used) by our existing operations, our growth, and our asset level financing. |
2. | Adjusted Operating Cash Flow is a non-GAAP financial measure. | |
Key Takeaways
GROWTH: Continued outsized customer growth
SERVICE: Premier provider of long-term customer service
CASH: Focused on long-term, recurring cash flow creation
13
Appendix
Non-GAAP Reconciliation - Adjusted EBITDA
Three Months Ended
March 31,
2020 | 2019 | 2018 | |
Reconciliation of Net Loss to Adjusted EBITDA: | (in thousands) | ||
Net loss | $(77,004) | $(35,496) | $(13,436) |
Interest expense, net | 67,318 | 31,661 | 4,983 |
Interest expense, net-affiliates | - | 1,822 | 2,493 |
Interest income | (4,620) | (2,494) | (1,192) |
Depreciation expense | 14,946 | 11,012 | 8,964 |
Amortization expense | 9 | 5 | 33 |
EBITDA | 649 | 6,510 | 1,845 |
Non-cash compensation expense | 2,690 | 387 | 726 |
ARO accretion expense | 489 | 313 | 211 |
Financing deal costs | 116 | 119 | 1,523 |
Natural disaster losses and related charges, net | 31 | - | 316 |
IPO costs | - | 739 | - |
Amortization of payments to dealers for exclusivity and other bonus arrangements | 351 | - | - |
Provision for current expected credit losses | 1,864 | - | - |
Adjusted EBITDA | $6,190 | $8,068 | $4,621 |
15
Non-GAAP Reconciliation - Adjusted Operating Cash Flow
Three Months Ended
March 31,
2020 | 2019 | 2018 | |
Reconciliation of Net Cash Used in Operating Activities to Adjusted Operating | (in thousands) | ||
Cash Flow: | |||
Net cash used in operating activities | $(58,112) | $(24,430) | $(19,220) |
Principal proceeds from customer notes receivable | 6,940 | 3,757 | 1,526 |
Financed insurance payments | (2,398) | - | - |
Derivative breakage fees from financing structure changes | 31,122 | 3,428 | (666) |
Distributions to redeemable noncontrolling interests | (1,373) | (3,652) | (339) |
Payments to dealers for exclusivity and other bonus arrangements | 5,344 | 2,000 | - |
Net inventory and prepaid inventory (sales) purchases | (1,593) | 2,967 | 2,742 |
Adjusted Operating Cash Flow | $(20,070) | $(15,930) | $(15,957) |
16
Non-GAAP Reconciliation - Adjusted Operating Expense
Three Months Ended
March 31,
2020 | 2019 | 2018 | |
Reconciliation of Total Operating Expense, Net to Adjusted Operating Expense: | (in thousands, except per customer data) | ||
Total operating expense, net | $44,135 | $31,222 | $26,936 |
Depreciation expense | (14,946) | (11,012) | (8,964) |
Amortization expense | (9) | (5) | (33) |
Non-cash compensation expense | (2,690) | (387) | (726) |
ARO accretion expense | (489) | (313) | (211) |
Financing deal costs | (116) | (119) | (1,523) |
Natural disaster losses and related charges, net | (31) | - | (316) |
IPO costs | - | (739) | - |
Amortization of payments to dealers for exclusivity and other bonus arrangements | (351) | - | - |
Provision for current expected credit losses | (1,864) | - | - |
Adjusted Operating Expense | $23,639 | $18,647 | $15,163 |
Adjusted Operating Expense per weighted average customer | $289 | $301 | $317 |
17
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
BALANCE SHEET
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||||||
Cash | $ | 27,172 | $ | 15,509 | $ | 56,318 | $ | 100,026 | $ | 53,723 | $ | 71,149 | $ | 52,706 | $ | 43,858 | $ | 58,776 | $ | 51,026 | $ | 83,485 | $ | 73,436 | |||||||||||||||
Accounts receivable - trade, net | 6,383 | 5,222 | 4,331 | 5,197 | 7,728 | 7,650 | 6,312 | 7,363 | 11,150 | 10,383 | 10,672 | 10,039 | |||||||||||||||||||||||||||
Accounts receivable - other | 10,242 | 2,442 | 7,821 | 5,744 | 7,571 | 10,050 | 3,721 | 3,153 | 4,531 | 5,922 | 6,147 | 9,264 | |||||||||||||||||||||||||||
Dealer advances | (A) | 9,255 | 12,306 | - | - | - | - | - | - | - | - | - | 45 | ||||||||||||||||||||||||||
Other current assets | 7,540 | 7,016 | 12,807 | 13,787 | 20,148 | 18,088 | 26,794 | 31,580 | 34,546 | 59,058 | 174,016 | 187,172 | |||||||||||||||||||||||||||
Total current assets | 60,592 | 42,495 | 81,277 | 124,754 | 89,170 | 106,937 | 89,533 | 85,954 | 109,003 | 126,389 | 274,320 | 279,956 | |||||||||||||||||||||||||||
Property and equipment, net | (B) | 974,285 | 1,044,741 | 1,113,073 | 1,165,281 | 1,224,378 | 1,280,802 | 1,328,457 | 1,399,299 | 1,499,891 | 1,620,048 | 1,745,060 | 1,884,576 | ||||||||||||||||||||||||||
Customer notes receivable, net | (C) | 52,455 | 60,435 | 73,657 | 93,714 | 118,872 | 143,682 | 172,031 | 197,780 | 223,645 | 255,070 | 297,975 | 338,514 | ||||||||||||||||||||||||||
Other assets | 47,378 | 51,641 | 60,781 | 71,264 | 78,146 | 93,814 | 75,064 | 86,430 | 120,125 | 148,279 | 169,712 | 179,134 | |||||||||||||||||||||||||||
Total assets | $ | 1,134,710 | $ | 1,199,312 | $ | 1,328,788 | $ | 1,455,013 | $ | 1,510,566 | $ | 1,625,235 | $ | 1,665,085 | $ | 1,769,463 | $ | 1,952,664 | $ | 2,149,786 | $ | 2,487,067 | $ | 2,682,180 | |||||||||||||||
Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 24,400 | $ | 27,997 | $ | 23,867 | $ | 18,838 | $ | 21,377 | $ | 25,612 | $ | 20,075 | $ | 34,904 | $ | 45,134 | $ | 40,342 | $ | 36,190 | $ | 59,657 | |||||||||||||||
Accrued expenses | (D) | 11,464 | 11,957 | 13,976 | 11,206 | 10,770 | 16,436 | 18,650 | 12,495 | 18,861 | 17,904 | 39,544 | 15,158 | ||||||||||||||||||||||||||
Current portion of long-term debt | 4,135 | 25,550 | 107,628 | 101,301 | 356,695 | 365,821 | 43,465 | 51,470 | 75,908 | 59,404 | 97,464 | 100,716 | |||||||||||||||||||||||||||
Other current liabilities | (E) | 6,117 | 3,652 | 8,425 | 7,527 | 10,109 | 6,636 | 13,214 | 11,206 | 18,701 | 13,501 | 21,804 | 15,324 | ||||||||||||||||||||||||||
Total current liabilities | 46,116 | 69,156 | 153,896 | 138,872 | 398,951 | 414,505 | 95,404 | 110,075 | 158,604 | 131,151 | 195,002 | 190,855 | |||||||||||||||||||||||||||
Long-term debt, net | (D) | 735,423 | 765,883 | 723,697 | 763,015 | 543,536 | 572,303 | 916,430 | 1,016,412 | 1,152,884 | 1,116,369 | 1,346,419 | 1,511,555 | ||||||||||||||||||||||||||
Other long-term liabilities | (F) | 33,239 | 38,398 | 41,422 | 42,747 | 48,195 | 53,057 | 66,453 | 75,645 | 92,044 | 119,128 | 127,406 | 145,323 | ||||||||||||||||||||||||||
Total liabilities | 814,778 | 873,437 | 919,015 | 944,634 | 990,682 | 1,039,865 | 1,078,287 | 1,202,132 | 1,403,532 | 1,366,648 | 1,668,827 | 1,847,733 | |||||||||||||||||||||||||||
Redeemable noncontrolling interests | 7,286 | 22,992 | 38,590 | 49,357 | 65,230 | 73,348 | 85,680 | 94,016 | 107,547 | 156,578 | 172,305 | 242,427 | |||||||||||||||||||||||||||
Stockholders' equity | 312,646 | 302,883 | 371,183 | 461,022 | 454,654 | 512,022 | 501,118 | 473,315 | 441,585 | 626,560 | 645,935 | 592,020 | |||||||||||||||||||||||||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ | 1,134,710 | $ | 1,199,312 | $ | 1,328,788 | $ | 1,455,013 | $ | 1,510,566 | $ | 1,625,235 | $ | 1,665,085 | $ | 1,769,463 | $ | 1,952,664 | $ | 2,149,786 | $ | 2,487,067 | $ | 2,682,180 | |||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||||||||||||||
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||||
Revenue | (G) $ | 21,743 | $ | 22,359 | $ | 17,802 | $ | 19,784 | $ | 28,963 | $ | 30,429 | $ | 25,206 | $ | 26,715 | $ | 34,612 | $ | 36,615 | $ | 33,614 | $ | 29,829 | |||||||||||||||
Operating expense: | |||||||||||||||||||||||||||||||||||||||
Cost of revenue - depreciation | 6,122 | 6,701 | 7,192 | 7,845 | 8,274 | 9,349 | 9,242 | 9,653 | 10,225 | 10,942 | 12,716 | 12,986 | |||||||||||||||||||||||||||
Cost of revenue - other | 314 | 398 | 429 | 412 | 448 | 614 | 533 | 652 | 1,076 | 1,186 | 963 | 1,043 | |||||||||||||||||||||||||||
Other operating expenses, net | 14,186 | 14,644 | 16,412 | 18,679 | 17,806 | 17,062 | 27,848 | 20,917 | 26,021 | 30,385 | 29,090 | 30,106 | |||||||||||||||||||||||||||
Total operating expense, net | 20,622 | 21,743 | 24,033 | 26,936 | 26,528 | 27,025 | 37,623 | 31,222 | 37,322 | 42,513 | 42,769 | 44,135 | |||||||||||||||||||||||||||
Operating income (loss) | 1,121 | 616 | (6,231) | (7,152) | 2,435 | 3,404 | (12,417) | (4,507) | (2,710) | (5,898) | (9,155) | (14,306) | |||||||||||||||||||||||||||
Interest expense, net | 25,153 | 15,523 | 12,243 | 4,983 | 10,724 | 9,416 | 26,459 | 31,661 | 37,310 | 30,884 | 8,169 | 67,318 | |||||||||||||||||||||||||||
Interest expense, net - affiliates | 11,428 | 2,665 | 2,523 | 2,493 | 2,354 | 2,398 | 2,303 | 1,822 | 1,575 | 701 | - | - | |||||||||||||||||||||||||||
Interest income | (766) | (854) | (959) | (1,192) | (1,418) | (1,763) | (2,077) | (2,494) | (2,967) | (3,407) | (3,615) | (4,620) | |||||||||||||||||||||||||||
Loss on extinguishment of long-term debt, net - affiliates | - | - | - | - | - | - | - | - | 10,645 | - | - | - | |||||||||||||||||||||||||||
Other (income) expense | - | - | - | - | (1) | - | - | - | 534 | 293 | 53 | - | |||||||||||||||||||||||||||
Loss before income tax | (34,694) | (16,718) | (20,038) | (13,436) | (9,224) | (6,647) | (39,102) | (35,496) | (49,807) | (34,369) | (13,762) | (77,004) | |||||||||||||||||||||||||||
Income tax | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net loss | (34,694) | (16,718) | (20,038) | (13,436) | (9,224) | (6,647) | (39,102) | (35,496) | (49,807) | (34,369) | (13,762) | (77,004) | |||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interests | 128 | 213 | (996) | 774 | 3,350 | (13) | 1,726 | 3,018 | 931 | 3,221 | 3,747 | (5,929) | |||||||||||||||||||||||||||
Net loss attributable to stockholders | $ | (34,822) | $ | (16,931) | $ | (19,042) | $ | (14,210) | $ | (12,574) | $ | (6,634) | $ | (40,828) | $ | (38,514) | $ | (50,738) | $ | (37,590) | $ | (17,509) | $ | (71,075) | |||||||||||||||
18
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
STATEMENT OF CASH FLOWS
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (34,694) | $ | (16,718) | $ | (20,038) | $ | (13,436) | $ | (9,224) | $ | (6,647) | $ | (39,102) | $ | (35,496) | $ | (49,807) | $ | (34,369) | $ | (13,762) | $ | (77,004) | |||||||||||||||
Adjustments to reconcile net loss to net cash (used in) | |||||||||||||||||||||||||||||||||||||||
operating activities: | |||||||||||||||||||||||||||||||||||||||
Depreciation | 7,025 | 7,612 | 8,219 | 8,964 | 9,386 | 10,650 | 10,290 | 11,012 | 11,627 | 12,348 | 14,353 | 14,946 | |||||||||||||||||||||||||||
Impairment and loss on disposals, net | 410 | 259 | 1,043 | 704 | 451 | 80 | 6,330 | 364 | 487 | 385 | 536 | 331 | |||||||||||||||||||||||||||
Amortization of deferred financing costs | 7,968 | 2,510 | 2,293 | 2,570 | 1,793 | 2,125 | 2,586 | 6,324 | 1,446 | 1,025 | 1,027 | 3,494 | |||||||||||||||||||||||||||
Amortization of debt discount | 28 | 453 | 269 | 242 | 259 | 265 | 317 | 472 | 820 | 735 | 991 | 4,663 | |||||||||||||||||||||||||||
Amortization of debt discount - affiliates | 8,402 | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Non-cash effect of equity-based compensation plans | 341 | 532 | 350 | 726 | 682 | 774 | 802 | 281 | 713 | 5,980 | 2,261 | 2,690 | |||||||||||||||||||||||||||
Non-cashpayment-in-kind interest on loan - affiliates | 880 | 1,426 | 1,263 | 1,297 | 1,403 | 1,432 | 1,392 | 1,158 | 1,043 | 515 | - | - | |||||||||||||||||||||||||||
Unrealized (gain) loss on derivatives | 5,105 | 1,832 | (1,502) | (9,140) | (4,518) | (6,989) | 26,747 | 7,032 | 10,417 | 12,813 | (11,025) | 7,596 | |||||||||||||||||||||||||||
Unrealized (gain) loss on fair value option instruments | - | - | - | - | - | - | - | - | 534 | (437) | 53 | - | |||||||||||||||||||||||||||
Loss on extinguishment of long-term debt, net - affiliates | - | - | - | - | - | - | - | - | 10,645 | - | - | - | |||||||||||||||||||||||||||
Other non-cash items | 595 | 731 | 1,075 | 1,599 | 1,026 | 976 | 1,217 | 1,000 | 2,470 | 1,167 | 3,805 | 3,424 | |||||||||||||||||||||||||||
Changes in components of operating assets and liabilities: | 2,691 | (1,167) | (5,430) | (1,409) | (1,343) | (2,755) | |||||||||||||||||||||||||||||||||
Accounts receivable | (1,927) | 867 | 643 | (1,154) | (3,328) | (3,192) | |||||||||||||||||||||||||||||||||
Dealer advances | (559) | (5,065) | (2,734) | (237) | - | - | - | - | - | - | - | (45) | |||||||||||||||||||||||||||
Other current assets | (692) | 1,065 | (1,157) | (3,640) | (2,965) | (789) | (3,937) | (8,961) | (396) | (2,396) | (119,988) | 4,169 | |||||||||||||||||||||||||||
Other assets | (1,187) | (1,050) | (1,107) | (1,546) | (2,054) | (2,971) | (1,958) | (3,979) | (22,084) | (11,724) | (2,331) | (8,682) | |||||||||||||||||||||||||||
Accounts payable | (2,169) | 987 | 267 | (1,064) | 485 | 434 | (851) | 6,771 | (4,492) | 2,877 | 136 | 13,768 | |||||||||||||||||||||||||||
Accrued expenses | 969 | 2,003 | 1,079 | (2,134) | 2,072 | 2,149 | 2,147 | (4,455) | 2,460 | (460) | 17,554 | (17,227) | |||||||||||||||||||||||||||
Other current liabilities | 2,764 | (2,469) | 4,654 | (776) | 2,603 | (3,471) | 6,582 | (2,206) | 7,568 | (5,287) | 8,377 | (6,446) | |||||||||||||||||||||||||||
Long-term debt - paid-in-kind - affiliates | (17,277) | - | - | (1,144) | - | - | (2,040) | - | - | (719) | - | - | |||||||||||||||||||||||||||
Other long-term liabilities | 444 | 445 | 1,026 | (1,051) | 588 | 493 | 459 | (2,580) | 715 | 112 | 3,632 | (1,034) | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (23,574) | (4,580) | (4,357) | (19,220) | (1,341) | (4,681) | 13,672 | (24,430) | (31,264) | (18,844) | (95,724) | (58,112) | |||||||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||
Purchases of property and equipment | (57,826) | (63,923) | (70,818) | (60,977) | (63,090) | (60,193) | (68,358) | (68,902) | (95,894) | (134,403) | (131,623) | (141,231) | |||||||||||||||||||||||||||
Payments for investments and customer notes receivable | (8,874) | (13,220) | (20,871) | (23,462) | (27,047) | (30,048) | (27,797) | (27,732) | (34,628) | (42,031) | (54,912) | (50,448) | |||||||||||||||||||||||||||
Proceeds from customer notes receivable | 1,020 | 615 | 739 | 1,526 | 2,242 | 1,965 | 1,982 | 3,757 | 5,579 | 4,736 | 7,532 | 6,940 | |||||||||||||||||||||||||||
State utility rebates and tax credits | 3 | 68 | 534 | 189 | 261 | 241 | 162 | 111 | 116 | 174 | 267 | 135 | |||||||||||||||||||||||||||
Other, net | (874) | 224 | 1,022 | (1,586) | 101 | 46 | 4,994 | 86 | 97 | (767) | 121 | 289 | |||||||||||||||||||||||||||
Net cash used in investing activities | (66,551) | (76,236) | (89,394) | (84,310) | (87,533) | (87,989) | (89,017) | (92,680) | (124,730) | (172,291) | (178,615) | (184,315) | |||||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||
Proceeds from long-term debt | 536,097 | 90,614 | 57,126 | 45,967 | 36,940 | 49,767 | 312,912 | 227,930 | 298,115 | 62,108 | 295,207 | 583,681 | |||||||||||||||||||||||||||
Payments of long-term debt | (316,607) | (51,666) | (4,912) | (10,448) | (3,973) | (12,624) | (265,046) | (123,858) | (163,505) | (31,492) | (23,685) | (408,695) | |||||||||||||||||||||||||||
Proceeds of long-term debt from affiliates | 80,000 | 15,000 | - | 15,000 | - | - | - | - | 15,000 | - | - | - | |||||||||||||||||||||||||||
Payments of long-term debt to affiliates | (196,835) | - | - | (20,000) | - | - | (20,000) | - | - | (56,236) | - | - | |||||||||||||||||||||||||||
Payments on notes payable | - | - | - | - | - | - | - | - | (248) | (1,929) | (2,495) | (2,398) | |||||||||||||||||||||||||||
Payments of deferred financing costs | (23,151) | (2,788) | (1,576) | (572) | (178) | (1,003) | (6,845) | (5,281) | (1,987) | (3,167) | (1,675) | (10,619) | |||||||||||||||||||||||||||
Payments of debt discounts | - | - | - | - | (70) | (1,813) | (582) | (525) | (559) | - | - | (229) | |||||||||||||||||||||||||||
Proceeds from issuance of common stock, net | - | - | - | - | - | - | - | 6 | (484) | 165,173 | (243) | (41) | |||||||||||||||||||||||||||
Proceeds from equity component of debt instrument, net | - | - | - | - | - | - | - | - | - | - | 13,984 | - | |||||||||||||||||||||||||||
Proceeds from issuance of convertible preferred stock, net | - | - | 64,890 | 99,877 | (2,731) | 59,971 | 15,654 | (2,253) | (256) | (1) | - | - | |||||||||||||||||||||||||||
Contributions from redeemable noncontrolling interests | 16,177 | 22,105 | 25,871 | 17,139 | 17,726 | 16,562 | 27,590 | 18,030 | 32,207 | 69,135 | 37,777 | 102,342 | |||||||||||||||||||||||||||
Distributions to redeemable noncontrolling interests | - | - | (294) | (339) | (450) | (533) | (695) | (3,652) | (1,491) | (1,146) | (1,270) | (1,373) | |||||||||||||||||||||||||||
Payments of costs related to redeemable noncontrolling interests | (84) | (44) | (877) | (832) | (47) | (106) | (525) | (1,035) | (587) | (1,533) | (2,240) | (1,295) | |||||||||||||||||||||||||||
Other, net | (29) | (19) | (19) | (1) | - | (5) | - | (11) | (2) | (2) | (1) | (1) | |||||||||||||||||||||||||||
Net cash provided by financing activities | 95,568 | 73,202 | 140,209 | 145,791 | 47,217 | 110,216 | 62,463 | 109,351 | 176,203 | 200,910 | 315,359 | 261,372 | |||||||||||||||||||||||||||
Net increase (decrease) in cash and restricted cash | 5,443 | (7,614) | 46,458 | 42,261 | (41,657) | 17,546 | (12,882) | (7,759) | 20,209 | 9,775 | 41,020 | 18,945 | |||||||||||||||||||||||||||
Cash and restricted cash at beginning of period | 37,491 | 42,934 | 35,320 | 81,778 | 124,039 | 82,382 | 99,928 | 87,046 | 79,287 | 99,496 | 109,271 | 150,291 | |||||||||||||||||||||||||||
Cash and restricted cash at end of period | 42,934 | 35,320 | 81,778 | 124,039 | 82,382 | 99,928 | 87,046 | 79,287 | 99,496 | 109,271 | 150,291 | 169,236 | |||||||||||||||||||||||||||
Restricted cash included in other current assets | (238) | (430) | (4,555) | (293) | (2,979) | (368) | (5,190) | (430) | (482) | (16,688) | (10,474) | (30,502) | |||||||||||||||||||||||||||
Restricted cash included in other assets | (15,524) | (19,381) | (20,905) | (23,720) | (25,680) | (28,411) | (29,150) | (34,999) | (40,238) | (41,557) | (56,332) | (65,298) | |||||||||||||||||||||||||||
Cash at end of period | $ | 27,172 | $ | 15,509 | $ | 56,318 | $ | 100,026 | $ | 53,723 | $ | 71,149 | $ | 52,706 | $ | 43,858 | $ | 58,776 | $ | 51,026 | $ | 83,485 | $ | 73,436 | |||||||||||||||
19
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
SELECTED BALANCE SHEET AND INCOME STATEMENT DETAIL
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||||
A - Other current assets | |||||||||||||||||||||||||||||||||||||||
Prepaid inventory | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 96,167 | $ | 17,100 | |||||||||||||||
Inventory | 798 | 773 | 1,853 | 2,711 | 4,339 | 4,627 | 9,187 | 15,787 | 16,526 | 17,125 | 43,749 | 115,107 | |||||||||||||||||||||||||||
Restricted cash | 238 | 430 | 4,555 | 293 | 2,979 | 368 | 5,190 | 430 | 482 | 16,688 | 10,474 | 30,502 | |||||||||||||||||||||||||||
Other prepaid assets | 3,991 | 2,728 | 3,030 | 4,999 | 5,047 | 4,197 | 2,739 | 4,559 | 5,510 | 9,626 | 7,380 | 7,123 | |||||||||||||||||||||||||||
Deferred receivables | 295 | 487 | 251 | 252 | 585 | 917 | 555 | 477 | 842 | 2,961 | 1,506 | 1,222 | |||||||||||||||||||||||||||
Current portion of customer notes receivable | 2,152 | 2,475 | 2,994 | 3,820 | 4,824 | 5,896 | 7,601 | 8,827 | 10,143 | 11,652 | 13,758 | 15,170 | |||||||||||||||||||||||||||
Current portion of other notes receivable | 66 | 123 | 124 | 1,712 | 1,647 | 1,588 | 1,522 | 1,500 | 1,043 | 1,006 | 982 | 947 | |||||||||||||||||||||||||||
Other | - | - | - | - | 727 | 495 | - | - | - | - | - | 1 | |||||||||||||||||||||||||||
Total other current assets | $ | 7,540 | $ | 7,016 | $ | 12,807 | $ | 13,787 | $ | 20,148 | $ | 18,088 | $ | 26,794 | $ | 31,580 | $ | 34,546 | $ | 59,058 | $ | 174,016 | $ | 187,172 | |||||||||||||||
B - Property and equipment, net | |||||||||||||||||||||||||||||||||||||||
Solar energy systems | $ | 873,099 | $ | 935,719 | $ | 1,031,555 | $ | 1,114,849 | $ | 1,186,890 | $ | 1,253,662 | $ | 1,311,458 | $ | 1,373,925 | $ | 1,459,249 | $ | 1,567,521 | $ | 1,689,457 | $ | 1,836,111 | |||||||||||||||
Construction in progress | 119,548 | 135,661 | 112,399 | 89,057 | 84,443 | 83,120 | 77,847 | 94,743 | 118,581 | 141,432 | 143,449 | 148,412 | |||||||||||||||||||||||||||
Asset retirement obligations | 11,801 | 12,729 | 13,864 | 14,948 | 15,893 | 16,687 | 17,381 | 18,160 | 19,118 | 20,335 | 26,967 | 29,021 | |||||||||||||||||||||||||||
Information technology systems | 9,277 | 9,299 | 12,063 | 12,103 | 12,159 | 12,854 | 17,380 | 18,618 | 20,488 | 20,488 | 28,320 | 28,495 | |||||||||||||||||||||||||||
Computers and equipment | 1,063 | 1,069 | 1,103 | 1,151 | 1,146 | 1,190 | 1,251 | 1,337 | 1,433 | 1,489 | 1,499 | 1,644 | |||||||||||||||||||||||||||
Leasehold improvements | 865 | 883 | 883 | 883 | 883 | 883 | 883 | 883 | 883 | 883 | 1,014 | 1,314 | |||||||||||||||||||||||||||
Furniture and fixtures | 730 | 732 | 733 | 733 | 733 | 733 | 735 | 735 | 735 | 735 | 735 | 811 | |||||||||||||||||||||||||||
Vehicles | 469 | 495 | 532 | 539 | 543 | 543 | 548 | 807 | 869 | 885 | 1,632 | 1,636 | |||||||||||||||||||||||||||
Other | 23 | 25 | 23 | 24 | 50 | 52 | 52 | 92 | 116 | 147 | 146 | 157 | |||||||||||||||||||||||||||
Property and equipment, gross | 1,016,875 | 1,096,612 | 1,173,155 | 1,234,287 | 1,302,740 | 1,369,724 | 1,427,535 | 1,509,300 | 1,621,472 | 1,753,915 | 1,893,219 | 2,047,601 | |||||||||||||||||||||||||||
Accumulated depreciation | (42,590) | (51,871) | (60,082) | (69,006) | (78,362) | (88,922) | (99,078) | (110,001) | (121,581) | (133,867) | (148,159) | (163,025) | |||||||||||||||||||||||||||
Total property and equipment, net | $ | 974,285 | $ | 1,044,741 | $ | 1,113,073 | $ | 1,165,281 | $ | 1,224,378 | $ | 1,280,802 | $ | 1,328,457 | $ | 1,399,299 | $ | 1,499,891 | $ | 1,620,048 | $ | 1,745,060 | $ | 1,884,576 | |||||||||||||||
C - Other assets | |||||||||||||||||||||||||||||||||||||||
Restricted cash | $ | 15,524 | $ | 19,381 | $ | 20,905 | $ | 23,720 | $ | 25,680 | $ | 28,411 | $ | 29,150 | $ | 34,999 | $ | 40,238 | $ | 41,557 | $ | 56,332 | $ | 65,298 | |||||||||||||||
Construction in progress - customer notes receivable | 7,947 | 12,562 | 18,235 | 19,937 | 19,661 | 22,441 | 20,395 | 19,209 | 23,124 | 32,184 | 37,137 | 33,903 | |||||||||||||||||||||||||||
Exclusivity and other bonus arrangements with dealers, net | - | - | - | - | - | - | - | 2,166 | 22,120 | 32,430 | 32,791 | 37,273 | |||||||||||||||||||||||||||
Straight-line revenue adjustment | 7,567 | 8,647 | 9,868 | 11,328 | 12,981 | 14,793 | 16,682 | 18,624 | 20,602 | 22,673 | 24,852 | 26,183 | |||||||||||||||||||||||||||
Other | 16,340 | 11,051 | 11,773 | 16,279 | 19,824 | 28,169 | 8,837 | 11,432 | 14,041 | 19,435 | 18,600 | 16,477 | |||||||||||||||||||||||||||
Total other assets | $ | 47,378 | $ | 51,641 | $ | 60,781 | $ | 71,264 | $ | 78,146 | $ | 93,814 | $ | 75,064 | $ | 86,430 | $ | 120,125 | $ | 148,279 | $ | 169,712 | $ | 179,134 | |||||||||||||||
D - Debt | |||||||||||||||||||||||||||||||||||||||
Sunnova Energy International Inc. | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 37,607 | $ | 38,267 | |||||||||||||||
Sunnova Energy Corporation | 78,474 | 95,275 | 81,791 | 77,603 | 79,316 | 81,155 | 60,681 | 61,855 | 90,827 | 4,924 | 2,428 | 30 | |||||||||||||||||||||||||||
Secure term loans and warehouse facilities: | |||||||||||||||||||||||||||||||||||||||
LV3 | 40,216 | 1,222 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
AP4 | 106,079 | 105,467 | 106,212 | 105,583 | 104,805 | 104,148 | 103,442 | 102,775 | 94,763 | 93,328 | 91,830 | - | |||||||||||||||||||||||||||
AP6WII | 10,005 | 63,026 | 82,927 | 114,525 | 135,281 | 133,602 | 54,294 | 70,765 | - | - | - | - | |||||||||||||||||||||||||||
LAPH | 234,397 | 236,603 | 234,666 | 232,697 | 230,823 | 227,060 | 43,170 | 42,877 | 42,865 | 42,490 | 42,119 | 10,402 | |||||||||||||||||||||||||||
EZOP | 30,900 | 29,880 | 29,740 | 29,350 | 28,523 | 40,500 | 58,200 | 96,204 | 41,318 | 54,799 | 119,222 | 166,459 | |||||||||||||||||||||||||||
TEPIH | - | 27,096 | 62,319 | 76,789 | 93,084 | 102,139 | 105,641 | - | - | - | - | - | |||||||||||||||||||||||||||
TEPIIH | - | - | - | - | - | 26,119 | 54,230 | 95,481 | 195,552 | 201,966 | 232,431 | - | |||||||||||||||||||||||||||
TEPH | - | - | - | - | - | - | - | - | - | 32,875 | 89,680 | 192,944 | |||||||||||||||||||||||||||
TEPINV | - | - | - | - | - | - | - | - | - | - | 90,144 | 84,427 | |||||||||||||||||||||||||||
Solar asset-backed and loan-backed notes: | |||||||||||||||||||||||||||||||||||||||
HELI | 239,487 | 232,864 | 233,670 | 227,769 | 228,399 | 223,401 | 224,017 | 217,038 | 217,641 | 212,956 | 213,550 | 209,304 | |||||||||||||||||||||||||||
HELII | - | - | - | - | - | - | 256,220 | 252,939 | 253,154 | 248,187 | 248,392 | 239,199 | |||||||||||||||||||||||||||
RAYSI | - | - | - | - | - | - | - | 127,948 | 130,035 | 129,147 | 126,849 | 124,389 | |||||||||||||||||||||||||||
HELIII | - | - | - | - | - | - | - | - | 162,637 | 155,101 | 149,631 | 144,167 | |||||||||||||||||||||||||||
SOLI | - | - | - | - | - | - | - | - | - | - | - | 402,683 | |||||||||||||||||||||||||||
Total debt | $ | 739,558 | $ | 791,433 | $ | 831,325 | $ | 864,316 | $ | 900,231 | $ | 938,124 | $ | 959,895 | $ | 1,067,882 | $ | 1,228,792 | $ | 1,175,773 | $ | 1,443,883 | $ | 1,612,271 | |||||||||||||||
20
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
SELECTED BALANCE SHEET AND INCOME STATEMENT DETAIL (continued)
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||||
E - Other current liabilities | |||||||||||||||||||||||||||||||||||||||
Interest payable | $ | 3,459 | $ | 1,391 | $ | 5,216 | $ | 1,964 | $ | 5,660 | $ | 2,538 | $ | 8,150 | $ | 5,063 | $ | 13,486 | $ | 7,257 | $ | 14,680 | $ | 8,978 | |||||||||||||||
Current portion of performance guarantee obligations | 680 | 754 | 958 | 1,961 | 2,215 | 2,529 | 2,580 | 3,058 | 3,618 | 3,885 | 4,067 | 2,502 | |||||||||||||||||||||||||||
Deferred revenue | 1,128 | 639 | 1,229 | 2,696 | 1,327 | 654 | 1,593 | 2,045 | 651 | 1,286 | 2,086 | 2,893 | |||||||||||||||||||||||||||
Current portion of lease liability | 844 | 860 | 875 | 891 | 907 | 914 | 871 | 1,032 | 946 | 531 | 561 | 924 | |||||||||||||||||||||||||||
Other | 6 | 8 | 147 | 15 | - | 1 | 20 | 8 | - | 542 | 410 | 27 | |||||||||||||||||||||||||||
Total other current liabilities | $ | 6,117 | $ | 3,652 | $ | 8,425 | $ | 7,527 | $ | 10,109 | $ | 6,636 | $ | 13,214 | $ | 11,206 | $ | 18,701 | $ | 13,501 | $ | 21,804 | $ | 15,324 | |||||||||||||||
F - Other long-term liabilities | $ | 21,296 | $ | 25,248 | $ | 28,595 | $ | 32,455 | $ | 35,900 | $ | 40,089 | $ | 45,609 | $ | 56,767 | $ | 65,664 | |||||||||||||||||||||
Deferred revenue | $ | 13,483 | $ | 15,539 | $ | 17,779 | |||||||||||||||||||||||||||||||||
Long-term derivative liability | 1,453 | 3,285 | 2,018 | - | - | - | 8,161 | 14,925 | 25,341 | 37,633 | 27,092 | 34,771 | |||||||||||||||||||||||||||
Asset retirement obligations | 12,973 | 14,011 | 15,347 | 16,641 | 17,988 | 19,056 | 20,033 | 21,123 | 22,407 | 23,970 | 31,053 | 33,594 | |||||||||||||||||||||||||||
Other | 5,330 | 5,563 | 6,278 | 4,810 | 4,959 | 5,406 | 5,804 | 3,697 | 4,207 | 11,916 | 12,494 | 11,294 | |||||||||||||||||||||||||||
Total other long-term liabilities | $ | 33,239 | $ | 38,398 | $ | 41,422 | $ | 42,747 | $ | 48,195 | $ | 53,057 | $ | 66,453 | $ | 75,645 | $ | 92,044 | $ | 119,128 | $ | 127,406 | $ | 145,323 | |||||||||||||||
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||||
G - Revenue | |||||||||||||||||||||||||||||||||||||||
PPA revenue | $ | 9,266 | $ | 8,530 | $ | 5,198 | $ | 7,288 | $ | 11,459 | $ | 11,508 | $ | 8,695 | $ | 9,612 | $ | 13,954 | $ | 14,329 | $ | 10,146 | $ | 12,633 | |||||||||||||||
Lease revenue | 5,227 | 5,799 | 5,940 | 7,237 | 8,144 | 8,452 | 9,247 | 9,638 | 9,620 | 10,238 | 10,695 | 11,542 | |||||||||||||||||||||||||||
SREC revenue | 6,992 | 7,773 | 6,406 | 4,964 | 8,898 | 9,944 | 6,824 | 6,592 | 9,716 | 10,603 | 11,542 | 4,363 | |||||||||||||||||||||||||||
Loan revenue | 104 | 122 | 147 | 178 | 224 | 251 | 280 | 371 | 363 | 418 | 493 | 599 | |||||||||||||||||||||||||||
Other revenue | 154 | 135 | 111 | 117 | 238 | 274 | 160 | 502 | 959 | 1,027 | 738 | 692 | |||||||||||||||||||||||||||
Total revenue | $ | 21,743 | $ | 22,359 | $ | 17,802 | $ | 19,784 | $ | 28,963 | $ | 30,429 | $ | 25,206 | $ | 26,715 | $ | 34,612 | $ | 36,615 | $ | 33,614 | $ | 29,829 | |||||||||||||||
KEY PERFORMANCE METRICS, NON-GAAP RECONCILIATIONS AND OTHER METRICS | |||||||||||||||||||||||||||||||||||||||
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||||
Cumulative number of customers | |||||||||||||||||||||||||||||||||||||||
Lease | 12,793 | 14,252 | 15,951 | 17,606 | 19,259 | 20,507 | 21,561 | 22,361 | 23,176 | 24,223 | 25,430 | 26,988 | |||||||||||||||||||||||||||
PPA | 24,195 | 25,375 | 27,259 | 28,934 | 30,228 | 31,449 | 32,634 | 34,180 | 36,355 | 39,104 | 42,115 | 45,595 | |||||||||||||||||||||||||||
Loan | 1,770 | 2,036 | 2,503 | 3,247 | 4,156 | 5,080 | 6,104 | 7,021 | 8,026 | 9,227 | 10,888 | 12,598 | |||||||||||||||||||||||||||
Other | - | - | - | - | - | - | - | 13 | 31 | 67 | 205 | 227 | |||||||||||||||||||||||||||
Total cumulative number of customers | 38,758 | 41,663 | 45,713 | 49,787 | 53,643 | 57,036 | 60,299 | 63,575 | 67,588 | 72,621 | 78,638 | 85,408 | |||||||||||||||||||||||||||
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||||
Weighted average number of customers | |||||||||||||||||||||||||||||||||||||||
Lease | 12,181 | 13,488 | 15,079 | 16,782 | 18,501 | 19,892 | 21,078 | 21,967 | 22,762 | 23,682 | 24,858 | 26,149 | |||||||||||||||||||||||||||
PPA | 23,458 | 24,788 | 26,211 | 28,123 | 29,576 | 30,850 | 32,062 | 33,361 | 35,268 | 37,728 | 40,580 | 43,818 | |||||||||||||||||||||||||||
Loan | 1,621 | 1,900 | 2,239 | 2,882 | 3,710 | 4,649 | 5,620 | 6,673 | 7,727 | 8,925 | 10,339 | 11,757 | |||||||||||||||||||||||||||
Other | - | - | - | - | - | - | - | 6 | 25 | 40 | 105 | 222 | |||||||||||||||||||||||||||
Total weighted average number of customers | 37,260 | 40,176 | 43,529 | 47,787 | 51,787 | 55,391 | 58,760 | 62,007 | 65,782 | 70,375 | 75,882 | 81,946 | |||||||||||||||||||||||||||
Estimated gross customer value (customer values in millions; per customer values in units) | |||||||||||||||||||||||||||||||||||||||
Estimated gross contracted customer value | $ | 948 | $ | 1,027 | $ | 1,127 | $ | 1,270 | $ | 1,316 | $ | 1,382 | $ | 1,476 | $ | 1,568 | $ | 1,652 | $ | 1,739 | $ | 1,879 | $ | 2,035 | |||||||||||||||
Estimated gross renewal customer value | 117 | 139 | 149 | 158 | 164 | 191 | 199 | 203 | 209 | 228 | 248 | $ | 269 | ||||||||||||||||||||||||||
Estimated gross total customer value | $ | 1,065 | $ | 1,166 | $ | 1,276 | $ | 1,428 | $ | 1,480 | $ | 1,573 | $ | 1,675 | $ | 1,771 | $ | 1,861 | $ | 1,967 | $ | 2,127 | $ | 2,304 | |||||||||||||||
Estimated gross total customer value per customer | $ | 27,448 | $ | 27,962 | $ | 27,921 | $ | 28,675 | $ | 27,612 | $ | 27,596 | $ | 27,778 | $ | 27,846 | $ | 27,530 | $ | 27,094 | $ | 27,061 | $ | 26,984 | |||||||||||||||
Estimated gross contracted customer value per customer | $ | 24,433 | $ | 24,628 | $ | 24,661 | $ | 25,502 | $ | 24,552 | $ | 24,246 | $ | 24,478 | $ | 24,654 | $ | 24,438 | $ | 23,953 | $ | 23,906 | $ | 23,832 |
21
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
KEY PERFORMANCE METRICS, NON-GAAP RECONCILIATIONS AND OTHER METRICS (continued)
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | ||||||||||||||||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||
Net loss | $ | (34,694) | $ | (16,718) | $ | (20,038) | $ | (13,436) | $ | (9,224) | $ | (6,647) | $ | (39,102) | $ | (35,496) | $ | (49,807) | $ | (34,369) | $ | (13,762) | $ | (77,004) | ||||||||||||||||
Interest expense, net | 25,153 | 15,523 | 12,243 | 4,983 | 10,724 | 9,416 | 26,459 | 31,661 | 37,310 | 30,884 | 8,169 | 67,318 | ||||||||||||||||||||||||||||
Interest expense, net - affiliates | 11,428 | 2,665 | 2,523 | 2,493 | 2,354 | 2,398 | 2,303 | 1,822 | 1,575 | 701 | - | - | ||||||||||||||||||||||||||||
Interest income | (766) | (854) | (959) | (1,192) | (1,418) | (1,763) | (2,077) | (2,494) | (2,967) | (3,407) | (3,615) | (4,620) | ||||||||||||||||||||||||||||
Depreciation expense | 7,025 | 7,612 | 8,219 | 8,964 | 9,386 | 10,650 | 10,290 | 11,012 | 11,627 | 12,348 | 14,353 | 14,946 | ||||||||||||||||||||||||||||
Amortization expense | 33 | 34 | 33 | 33 | 34 | 33 | 33 | 5 | 7 | 8 | 9 | 9 | ||||||||||||||||||||||||||||
EBITDA | 8,179 | 8,262 | 2,021 | 1,845 | 11,856 | 14,087 | (2,094) | 6,510 | (2,255) | 6,165 | 5,154 | 649 | ||||||||||||||||||||||||||||
Non-cash compensation expense | 341 | 532 | 350 | 726 | 824 | 916 | 944 | 387 | 1,884 | 5,980 | 2,261 | 2,690 | ||||||||||||||||||||||||||||
ARO accretion expense | 172 | 188 | 203 | 211 | 402 | 278 | 292 | 313 | 327 | 349 | 454 | 489 | ||||||||||||||||||||||||||||
Financing deal costs | 65 | (51) | 16 | 1,523 | (182) | (3) | 564 | 119 | 849 | 60 | 133 | 116 | ||||||||||||||||||||||||||||
Natural disaster losses and related charges, net | - | 98 | 936 | 316 | 296 | (182) | 7,787 | - | - | 54 | - | 31 | ||||||||||||||||||||||||||||
IPO costs | - | - | - | - | 1 | 80 | 482 | 739 | 1,307 | 1,758 | - | - | ||||||||||||||||||||||||||||
Loss on unenforceable contracts | - | - | - | - | - | - | - | - | - | - | 2,381 | - | ||||||||||||||||||||||||||||
Loss on extinguishment of long-term debt, net - affiliates | - | - | - | - | - | - | - | - | 10,645 | - | - | - | ||||||||||||||||||||||||||||
Unrealized (gain) loss on fair value option instruments | - | - | - | - | - | - | - | - | 534 | (437) | 53 | - | ||||||||||||||||||||||||||||
Realized loss on fair value option instruments | - | - | - | - | - | - | - | - | - | 730 | - | - | ||||||||||||||||||||||||||||
Amortization of payments to dealers for exclusivity and other bonus arrangements | - | - | - | - | - | - | - | - | 14 | 241 | 328 | 351 | ||||||||||||||||||||||||||||
Legal settlements | - | - | 575 | - | - | 150 | - | - | 293 | 967 | - | - | ||||||||||||||||||||||||||||
Provision for current expected credit losses | - | - | - | - | - | - | - | - | - | - | - | 1,864 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 8,757 | $ | 9,029 | $ | 4,101 | $ | 4,621 | $ | 13,197 | $ | 15,326 | $ | 7,975 | $ | 8,068 | $ | 13,598 | $ | 15,867 | $ | 10,764 | $ | 6,190 | ||||||||||||||||
Interest income from customer notes receivable | $ | 719 | $ | 796 | $ | 899 | $ | 1,133 | $ | 1,355 | $ | 1,672 | $ | 1,987 | $ | 2,328 | $ | 2,692 | $ | 3,136 | $ | 3,432 | $ | 4,372 | ||||||||||||||||
Principal proceeds from customer notes receivable, net of related revenue | $ | 916 | $ | 495 | $ | 592 | $ | 1,349 | $ | 2,031 | $ | 1,718 | $ | 1,714 | $ | 3,429 | $ | 5,224 | $ | 4,333 | $ | 7,058 | $ | 6,378 | ||||||||||||||||
Adjusted Operating Cash Flow | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Operating Cash Flow | ||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (23,574) | $ | (4,580) | $ | (4,357) | $ | (19,220) | $ | (1,341) | $ | (4,681) | $ | 13,672 | $ | (24,430) | $ | (31,264) | $ | (18,844) | $ | (95,724) | $ | (58,112) | ||||||||||||||||
Principal proceeds from customer note receivable | 1,020 | 615 | 739 | 1,526 | 2,242 | 1,965 | 1,982 | 3,757 | 5,579 | 4,736 | 7,532 | 6,940 | ||||||||||||||||||||||||||||
Financed insurance payments | - | - | - | - | - | - | - | - | (248) | (1,929) | (2,495) | (2,398) | ||||||||||||||||||||||||||||
Derivative breakage fees from financing structure changes | 2,833 | - | - | (666) | - | - | (17,127) | 3,428 | 8,652 | - | - | 31,122 | ||||||||||||||||||||||||||||
Distributions to redeemable noncontrolling interests | - | - | (294) | (339) | (450) | (533) | (695) | (3,652) | (1,491) | (1,146) | (1,270) | (1,373) | ||||||||||||||||||||||||||||
Payments to dealers for exclusivity and other bonus arrangements | - | - | - | - | - | - | - | 2,000 | 20,000 | 9,733 | - | 5,344 | ||||||||||||||||||||||||||||
Net inventory and prepaid inventory purchases | 59 | 90 | 1,671 | 2,742 | 2,298 | 1,710 | 6,350 | 2,967 | 4,180 | 1,036 | 110,366 | (1,593) | ||||||||||||||||||||||||||||
Payments of non-capitalized costs related to IPO | - | - | - | - | - | - | - | - | - | 4,060 | 884 | - | ||||||||||||||||||||||||||||
Adjusted Operating Cash Flow | $ | (19,662) | $ | (3,875) | $ | (2,241) | $ | (15,957) | $ | 2,749 | $ | (1,539) | $ | 4,182 | $ | (15,930) | $ | 5,408 | $ | (2,354) | $ | 19,293 | $ | (20,070) | ||||||||||||||||
Adjusted Operating Expense | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of Total Operating Expense, Net to Adjusted Operating Expense | ||||||||||||||||||||||||||||||||||||||||
Total operating expense, net | $ | 20,622 | $ | 21,743 | $ | 24,033 | $ | 26,936 | $ | 26,528 | $ | 27,025 | $ | 37,623 | $ | 31,222 | $ | 37,322 | $ | 42,513 | $ | 42,769 | $ | 44,135 | ||||||||||||||||
Depreciation expense | (7,025) | (7,612) | (8,219) | (8,964) | (9,386) | (10,650) | (10,290) | (11,012) | (11,627) | (12,348) | (14,353) | (14,946) | ||||||||||||||||||||||||||||
Amortization expense | (33) | (34) | (33) | (33) | (34) | (33) | (33) | (5) | (7) | (8) | (9) | (9) | ||||||||||||||||||||||||||||
Non-cash compensation expense | (341) | (532) | (350) | (726) | (824) | (916) | (944) | (387) | (1,884) | (5,980) | (2,261) | (2,690) | ||||||||||||||||||||||||||||
ARO accretion expense | (172) | (188) | (203) | (211) | (402) | (278) | (292) | (313) | (327) | (349) | (454) | (489) | ||||||||||||||||||||||||||||
Financing deal costs | (65) | 51 | (16) | (1,523) | 182 | 3 | (564) | (119) | (849) | (60) | (133) | (116) | ||||||||||||||||||||||||||||
Natural disaster losses and related charges, net | - | (98) | (936) | (316) | (296) | 182 | (7,787) | - | - | (54) | - | (31) | ||||||||||||||||||||||||||||
IPO costs | - | - | - | - | (1) | (80) | (482) | (739) | (1,307) | (1,758) | - | - | ||||||||||||||||||||||||||||
Loss on unenforceable contracts | - | - | - | - | - | - | - | - | - | - | (2,381) | - | ||||||||||||||||||||||||||||
Amortization of payments to dealers for exclusivity and other bonus arrangements | - | - | - | - | - | - | - | - | (14) | (241) | (328) | (351) | ||||||||||||||||||||||||||||
Legal settlements | - | - | (575) | - | - | (150) | - | - | (293) | (967) | - | - | ||||||||||||||||||||||||||||
Provision for current expected credit losses | - | - | - | - | - | - | - | - | - | - | - | (1,864) | ||||||||||||||||||||||||||||
Adjusted Operating Expense | $ | 12,986 | $ | 13,330 | $ | 13,701 | $ | 15,163 | $ | 15,767 | $ | 15,103 | $ | 17,231 | $ | 18,647 | $ | 21,014 | $ | 20,748 | $ | 22,850 | $ | 23,639 | ||||||||||||||||
Adjusted Operating Expense per weighted average customer | $ | 348 | $ | 332 | $ | 315 | $ | 317 | $ | 304 | $ | 273 | $ | 293 | $ | 301 | $ | 319 | $ | 295 | $ | 301 | $ | 289 |
22
Financial Statements & Operating Metrics
(dollars in thousands; customer counts and per customer values in units; customer values in millions)
KEY PERFORMANCE METRICS, NON-GAAP RECONCILIATIONS AND OTHER METRICS (continued)
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||||
Number of customers deployed during the period | |||||||||||||||||||||||||||||||||||||||
Lease | 1,077 | 1,459 | 1,699 | 1,655 | 1,653 | 1,248 | 1,054 | 800 | 815 | 1,047 | 1,207 | 1,558 | |||||||||||||||||||||||||||
PPA | 1,508 | 1,180 | 1,884 | 1,675 | 1,294 | 1,221 | 1,185 | 1,546 | 2,175 | 2,749 | 3,011 | 3,480 | |||||||||||||||||||||||||||
Loan | 277 | 266 | 467 | 744 | 909 | 924 | 1,024 | 917 | 1,005 | 1,201 | 1,661 | 1,710 | |||||||||||||||||||||||||||
Other | - | - | - | - | - | - | - | 13 | 18 | 36 | 138 | 22 | |||||||||||||||||||||||||||
Total number of customers deployed during the period | 2,862 | 2,905 | 4,050 | 4,074 | 3,856 | 3,393 | 3,263 | 3,276 | 4,013 | 5,033 | 6,017 | 6,770 | |||||||||||||||||||||||||||
Average kw per customer | 7.2 | 7.6 | 7.6 | 7.2 | 7.4 | 7.5 | 7.7 | 7.8 | 7.9 | 7.8 | 7.7 | 7.9 | |||||||||||||||||||||||||||
Estimated net system value deployed (in millions) | $ | 26 | $ | 29 | $ | 35 | $ | 35 | $ | 34 | $ | 28 | $ | 28 | $ | 25 | $ | 32 | $ | 38 | $ | 43 | $ | 49 | |||||||||||||||
Estimated net system value deployed per new customer | $ | 9,085 | $ | 9,983 | $ | 8,642 | $ | 8,591 | $ | 8,817 | $ | 8,252 | $ | 8,581 | $ | 7,639 | $ | 7,974 | $ | 7,550 | $ | 7,146 | $ | 7,276 | |||||||||||||||
Estimated net system value deployed, leases and PPAs (in millions) | $ | 24 | $ | 28 | $ | 34 | $ | 34 | $ | 32 | $ | 27 | $ | 26 | $ | 24 | $ | 31 | $ | 36 | $ | 39 | $ | 45 | |||||||||||||||
Estimated net system value deployed per new customer, leases and PPAs | $ | 9,284 | $ | 10,610 | $ | 9,489 | $ | 10,210 | $ | 10,859 | $ | 10,936 | $ | 11,612 | $ | 10,230 | $ | 10,368 | $ | 9,484 | $ | 9,246 | $ | 8,859 |
23
Key Performance Indicators & Other Metrics and Calculations
(dollars in millions; customer and per customer values in units)
KEY PERFORMANCE INDICATORS | |||||||||||||||||||||||||||||||||||||
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||
Cumulative number of customers | 38,758 | 41,663 | 45,713 | 49,787 | 53,643 | 57,036 | 60,299 | 63,575 | 67,588 | 72,621 | 78,638 | 85,408 | |||||||||||||||||||||||||
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||
Weighted average number of customers | 37,260 | 40,176 | 43,529 | 47,787 | 51,787 | 55,391 | 58,760 | 62,007 | 65,782 | 70,375 | 75,882 | 81,946 | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 8.8 | $ | 9.0 | $ | 4.1 | $ | 4.6 | $ | 13.2 | $ | 15.3 | $ | 8.0 | $ | 8.1 | $ | 13.6 | $ | 15.9 | $ | 10.8 | $ | 6.2 | |||||||||||||
Interest income from customer notes receivable | $ | 0.7 | $ | 0.8 | $ | 0.9 | $ | 1.1 | $ | 1.4 | $ | 1.7 | $ | 2.0 | $ | 2.3 | $ | 2.7 | $ | 3.1 | $ | 3.4 | $ | 4.4 | |||||||||||||
Principal proceeds from customer notes receivable, net of related revenue | $ | 0.9 | $ | 0.5 | $ | 0.6 | $ | 1.3 | $ | 2.0 | $ | 1.7 | $ | 1.7 | $ | 3.4 | $ | 5.2 | $ | 4.3 | $ | 7.1 | $ | 6.4 | |||||||||||||
Adjusted Operating Cash Flow | $ | (19.7) | $ | (3.9) | $ | (2.2) | $ | (16.0) | $ | 2.7 | $ | (1.5) | $ | 4.2 | $ | (15.9) | $ | 5.4 | $ | (2.4) | $ | 19.3 | $ | (20.1) | |||||||||||||
Adjusted Operating Expense | $ | 13.0 | $ | 13.3 | $ | 13.7 | $ | 15.2 | $ | 15.8 | $ | 15.1 | $ | 17.2 | $ | 18.6 | $ | 21.0 | $ | 20.7 | $ | 22.9 | $ | 23.6 | |||||||||||||
Adjusted Operating Expense per weighted average customer | $ | 348 | $ | 332 | $ | 315 | $ | 317 | $ | 304 | $ | 273 | $ | 293 | $ | 301 | $ | 319 | $ | 295 | $ | 301 | $ | 289 | |||||||||||||
Adjusted Operating Expense per customer, trailing twelve months | $ | 1,361 | $ | 1,288 | $ | 1,255 | $ | 1,210 | $ | 1,194 | $ | 1,178 | $ | 1,188 | $ | 1,198 | $ | 1,199 | $ | 1,185 | |||||||||||||||||
OTHER METRICS AND CALCULATIONS | |||||||||||||||||||||||||||||||||||||
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||
Estimated gross contracted customer value | $ | 948 | $ | 1,027 | $ | 1,127 | $ | 1,270 | $ | 1,316 | $ | 1,382 | $ | 1,476 | $ | 1,568 | $ | 1,652 | $ | 1,739 | $ | 1,879 | $ | 2,035 | |||||||||||||
Estimated gross contracted customer value per customer | $ | 24,433 | $ | 24,628 | $ | 24,661 | $ | 25,502 | $ | 24,552 | $ | 24,246 | $ | 24,478 | $ | 24,654 | $ | 24,438 | $ | 23,953 | $ | 23,906 | $ | 23,832 | |||||||||||||
Estimated gross total customer value | $ | 1,065 | $ | 1,166 | $ | 1,276 | $ | 1,428 | $ | 1,480 | $ | 1,573 | $ | 1,675 | $ | 1,771 | $ | 1,861 | $ | 1,967 | $ | 2,127 | $ | 2,304 | |||||||||||||
Estimated gross total customer value per customer | $ | 27,448 | $ | 27,962 | $ | 27,921 | $ | 28,675 | $ | 27,612 | $ | 27,596 | $ | 27,778 | $ | 27,846 | $ | 27,530 | $ | 27,094 | $ | 27,061 | $ | 26,984 | |||||||||||||
Estimated gross contracted customer value | $ | 948 | $ | 1,027 | $ | 1,127 | $ | 1,270 | $ | 1,316 | $ | 1,382 | $ | 1,476 | $ | 1,568 | $ | 1,652 | $ | 1,739 | $ | 1,879 | $ | 2,035 | |||||||||||||
(+) Estimated gross renewal customer value | 117 | 139 | 149 | 158 | 164 | 191 | 199 | 203 | 209 | 228 | 248 | 269 | |||||||||||||||||||||||||
Estimated gross customer value | 1,065 | 1,166 | 1,276 | 1,428 | 1,480 | 1,573 | 1,675 | 1,771 | 1,861 | 1,967 | 2,127 | 2,304 | |||||||||||||||||||||||||
(-) Project debt, net | (661) | (696) | (750) | (787) | (821) | (857) | (899) | (1,006) | (1,138) | (1,171) | (1,404) | (1,574) | |||||||||||||||||||||||||
Estimated net earning assets | 404 | 470 | 526 | 641 | 659 | 716 | 776 | 765 | 723 | 796 | 723 | 730 | |||||||||||||||||||||||||
(-) Corporate debt, net (including equity component) | (78) | (95) | (82) | (78) | (79) | (81) | (61) | (62) | (91) | (5) | (54) | (52) | |||||||||||||||||||||||||
(+) Cash and restricted cash | 43 | 35 | 82 | 124 | 82 | 100 | 87 | 79 | 99 | 109 | 150 | 169 | |||||||||||||||||||||||||
(+) Construction in process | 127 | 148 | 131 | 109 | 104 | 106 | 98 | 114 | 142 | 174 | 181 | 182 | |||||||||||||||||||||||||
(+) Inventory, prepaid inventory and inventory receivable | 1 | 1 | 2 | 3 | 4 | 5 | 9 | 16 | 17 | 17 | 140 | 135 | |||||||||||||||||||||||||
Estimated net customer value | 497 | 559 | 659 | 799 | 770 | 846 | 909 | 912 | 890 | 1,091 | 1,140 | 1,164 | |||||||||||||||||||||||||
(-) Estimated gross renewal customer value | (117) | (139) | (149) | (158) | (164) | (191) | (199) | (203) | (209) | (228) | (248) | (269) | |||||||||||||||||||||||||
Estimated net contracted customer value | $ | 380 | $ | 420 | $ | 510 | $ | 641 | $ | 606 | $ | 655 | $ | 710 | $ | 709 | $ | 681 | $ | 863 | $ | 892 | $ | 895 | |||||||||||||
Cumulative capital deployed in solar energy systems | $ | 873 | $ | 936 | $ | 1,032 | $ | 1,115 | $ | 1,187 | $ | 1,254 | $ | 1,311 | $ | 1,374 | $ | 1,459 | $ | 1,568 | $ | 1,689 | $ | 1,836 | |||||||||||||
Cumulative capital deployed in customer notes receivable | 40 | 47 | 58 | 74 | 97 | 120 | 146 | 169 | 193 | 220 | 253 | 285 | |||||||||||||||||||||||||
Exclusivity and other bonus arrangements with dealers, net | - | - | - | - | - | - | - | 2 | 22 | 32 | 33 | 37 | |||||||||||||||||||||||||
Cumulative capital deployed | $ | 913 | $ | 983 | $ | 1,090 | $ | 1,189 | $ | 1,284 | $ | 1,374 | $ | 1,457 | $ | 1,545 | $ | 1,674 | $ | 1,820 | $ | 1,975 | $ | 2,158 | |||||||||||||
Average cumulative capital deployed, trailing twelve months | $ | 937 | $ | 1,020 | $ | 1,099 | $ | 1,179 | $ | 1,274 | $ | 1,367 | $ | 1,479 | $ | 1,597 | $ | 1,716 | $ | 1,852 | |||||||||||||||||
Revenue | $ | 21.7 | $ | 22.4 | $ | 17.8 | $ | 19.8 | $ | 29.0 | $ | 30.4 | $ | 25.2 | $ | 26.7 | $ | 34.6 | $ | 36.6 | $ | 33.6 | $ | 29.8 | |||||||||||||
Interest income from customer notes receivable | $ | 0.7 | $ | 0.8 | $ | 0.9 | $ | 1.1 | $ | 1.4 | $ | 1.7 | $ | 2.0 | $ | 2.3 | $ | 2.7 | $ | 3.1 | $ | 3.4 | $ | 4.4 | |||||||||||||
Principal proceeds from customer notes receivable, net of related revenue | $ | 0.9 | $ | 0.5 | $ | 0.6 | $ | 1.3 | $ | 2.0 | $ | 1.7 | $ | 1.7 | $ | 3.4 | $ | 5.2 | $ | 4.3 | $ | 7.1 | $ | 6.4 | |||||||||||||
Adjusted EBITDA | $ | 8.8 | $ | 9.0 | $ | 4.1 | $ | 4.6 | $ | 13.2 | $ | 15.3 | $ | 8.0 | $ | 8.1 | $ | 13.6 | $ | 15.9 | $ | 10.8 | $ | 6.2 |
Note: Revenue, interest income from customer notes receivable, and principal proceeds from customer notes receivable, net of related revenue, all exclude benefits from tax credits, which are in financing cash flows, "platform services," loan sales and sales of other future cash flow streams.
24
Key Performance Indicators & Other Metrics and Calculations
(dollars in millions; customer and per customer values in units)
OTHER METRICS AND CALCULATIONS (continued) | |||||||||||||||||||||||||||||||||||||
Period | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | |||||||||||||||||||||||||
Number of customers deployed during the period | |||||||||||||||||||||||||||||||||||||
CA | 447 | 425 | 550 | 662 | 643 | 672 | 618 | 702 | 947 | 1,178 | 1,372 | 1,230 | |||||||||||||||||||||||||
NJ | 1,195 | 1,477 | 1,406 | 1,021 | 1,146 | 859 | 735 | 692 | 681 | 658 | 920 | 1,131 | |||||||||||||||||||||||||
CT | 20 | 91 | 258 | 406 | 530 | 563 | 603 | 525 | 740 | 752 | 732 | 783 | |||||||||||||||||||||||||
MA | 128 | 101 | 188 | 220 | 392 | 289 | 343 | 221 | 325 | 340 | 558 | 605 | |||||||||||||||||||||||||
MD | 33 | 57 | 182 | 103 | 118 | 116 | 160 | 250 | 194 | 171 | 225 | 258 | |||||||||||||||||||||||||
NY | 99 | 248 | 498 | 451 | 402 | 317 | 277 | 196 | 214 | 578 | 384 | 425 | |||||||||||||||||||||||||
PA | - | - | 2 | 39 | 74 | 136 | 182 | 183 | 212 | 272 | 278 | 277 | |||||||||||||||||||||||||
PR | 742 | 338 | 762 | 931 | 350 | 240 | 128 | 102 | 269 | 289 | 678 | 850 | |||||||||||||||||||||||||
RI | - | 1 | 6 | 8 | 18 | 62 | 60 | 94 | 112 | 135 | 135 | 165 | |||||||||||||||||||||||||
TX | 25 | 58 | 89 | 149 | 76 | 48 | 36 | 78 | 97 | 150 | 241 | 370 | |||||||||||||||||||||||||
All others | 173 | 109 | 109 | 84 | 107 | 91 | 121 | 233 | 222 | 510 | 494 | 676 | |||||||||||||||||||||||||
Total number of customers deployed during the period | 2,862 | 2,905 | 4,050 | 4,074 | 3,856 | 3,393 | 3,263 | 3,276 | 4,013 | 5,033 | 6,017 | 6,770 | |||||||||||||||||||||||||
Cumulative MW deployed | |||||||||||||||||||||||||||||||||||||
Lease | 92.1 | 103.9 | 117.8 | 130.0 | 142.0 | 151.4 | 159.3 | 165.8 | 172.8 | 181.4 | 191.2 | 203.5 | |||||||||||||||||||||||||
PPA | 164.3 | 172.2 | 185.2 | 196.4 | 205.9 | 215.2 | 224.6 | 236.3 | 253.5 | 275.5 | 300.0 | 328.0 | |||||||||||||||||||||||||
Loan | 11.6 | 13.9 | 17.8 | 23.8 | 30.9 | 37.8 | 45.5 | 52.9 | 60.6 | 69.1 | 80.9 | 94.1 | |||||||||||||||||||||||||
Total cumulative MW deployed | 268.0 | 290.0 | 320.8 | 350.2 | 378.8 | 404.4 | 429.4 | 455.0 | 486.9 | 526.0 | 572.1 | 625.6 | |||||||||||||||||||||||||
MW deployed during the period | |||||||||||||||||||||||||||||||||||||
Lease | 8.6 | 11.8 | 13.9 | 12.2 | 12.0 | 9.4 | 7.9 | 6.5 | 7.0 | 8.6 | 9.8 | 12.3 | |||||||||||||||||||||||||
PPA | 9.7 | 7.9 | 13.0 | 11.2 | 9.5 | 9.3 | 9.4 | 11.7 | 17.2 | 22.0 | 24.5 | 28.0 | |||||||||||||||||||||||||
Loan | 2.3 | 2.3 | 3.9 | 6.0 | 7.1 | 6.9 | 7.7 | 7.4 | 7.7 | 8.5 | 11.8 | 13.2 | |||||||||||||||||||||||||
Total MW deployed during period | 20.6 | 22.0 | 30.8 | 29.4 | 28.6 | 25.6 | 25.0 | 25.6 | 31.9 | 39.1 | 46.1 | 53.5 | |||||||||||||||||||||||||
Creation costs - total | $ | 64 | $ | 76 | $ | 117 | $ | 107 | $ | 99 | $ | 97 | $ | 86 | $ | 91 | $ | 125 | $ | 158 | $ | 185 | $ | 206 | |||||||||||||
Creation costs - leases and PPAs | $ | 55 | $ | 63 | $ | 96 | $ | 83 | $ | 72 | $ | 67 | $ | 58 | $ | 63 | $ | 91 | $ | 116 | $ | 130 | $ | 155 | |||||||||||||
Adjusted operating expense allocation | |||||||||||||||||||||||||||||||||||||
Customer service | $ | 8.2 | $ | 6.9 | $ | 6.8 | $ | 8.7 | $ | 8.4 | $ | 6.7 | $ | 10.0 | $ | 11.2 | $ | 12.2 | $ | 12.5 | $ | 13.6 | $ | 14.4 | |||||||||||||
Sales and marketing | $ | 4.8 | $ | 6.4 | $ | 6.9 | $ | 6.5 | $ | 7.4 | $ | 8.4 | $ | 7.3 | $ | 7.5 | $ | 8.9 | $ | 8.3 | $ | 9.2 | $ | 9.3 | |||||||||||||
Other | $ | (0.0) | $ | 0.0 | $ | (0.0) | $ | (0.0) | $ | (0.0) | $ | (0.0) | $ | (0.0) | $ | (0.0) | $ | (0.1) | $ | (0.0) | $ | (0.0) | $ | (0.0) | |||||||||||||
Estimated net system value deployed | $ | 26 | $ | 29 | $ | 35 | $ | 35 | $ | 34 | $ | 28 | $ | 28 | $ | 25 | $ | 32 | $ | 38 | $ | 43 | $ | 49 | |||||||||||||
Estimated net system value deployed per new customer | $ | 9,085 | $ | 9,983 | $ | 8,642 | $ | 8,591 | $ | 8,817 | $ | 8,252 | $ | 8,581 | $ | 7,639 | $ | 7,974 | $ | 7,550 | $ | 7,146 | $ | 7,276 | |||||||||||||
Estimated net system value deployed, leases and PPAs | $ | 24 | $ | 28 | $ | 34 | $ | 34 | $ | 32 | $ | 27 | $ | 26 | $ | 24 | $ | 31 | $ | 36 | $ | 39 | $ | 45 | |||||||||||||
Estimated net system value deployed per new customer, leases and PPAs | $ | 9,284 | $ | 10,610 | $ | 9,489 | $ | 10,210 | $ | 10,859 | $ | 10,936 | $ | 11,612 | $ | 10,230 | $ | 10,368 | $ | 9,484 | $ | 9,246 | $ | 8,859 | |||||||||||||
As of | 6/30/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | |||||||||||||||||||||||||
Customer contract sensitivities | |||||||||||||||||||||||||||||||||||||
Estimated gross total customer value - 4% discount rate | $ | 1,324 | $ | 1,452 | $ | 1,585 | $ | 1,762 | $ | 1,826 | $ | 1,943 | $ | 2,059 | $ | 2,170 | $ | 2,274 | $ | 2,403 | $ | 2,593 | $ | 2,804 | |||||||||||||
Estimated gross total customer value - 6% discount rate | $ | 1,065 | $ | 1,166 | $ | 1,276 | $ | 1,428 | $ | 1,480 | $ | 1,573 | $ | 1,675 | $ | 1,771 | $ | 1,861 | $ | 1,967 | $ | 2,127 | $ | 2,304 | |||||||||||||
Estimated gross contracted customer value - 4% discount rate | $ | 1,122 | $ | 1,214 | $ | 1,330 | $ | 1,492 | $ | 1,545 | $ | 1,619 | $ | 1,723 | $ | 1,827 | $ | 1,920 | $ | 2,018 | $ | 2,175 | $ | 2,351 | |||||||||||||
Estimated gross contracted customer value - 6% discount rate | $ | 948 | $ | 1,027 | $ | 1,127 | $ | 1,270 | $ | 1,316 | $ | 1,382 | $ | 1,476 | $ | 1,568 | $ | 1,652 | $ | 1,739 | $ | 1,879 | $ | 2,035 | |||||||||||||
Estimated net contracted customer value - 4% discount rate | $ | 553 | $ | 606 | $ | 711 | $ | 861 | $ | 831 | $ | 886 | $ | 948 | $ | 952 | $ | 932 | $ | 1,125 | $ | 1,188 | $ | 1,211 | |||||||||||||
Estimated net contracted customer value - 6% discount rate | $ | 380 | $ | 420 | $ | 510 | $ | 641 | $ | 606 | $ | 655 | $ | 710 | $ | 709 | $ | 681 | $ | 863 | $ | 892 | $ | 895 | |||||||||||||
25
Definitions
For more information about metrics and important notes regarding our financial statements please refer to our periodic reports filed with the SEC and our quarterly earnings presentations available on our website at investors.sunnova.com.
Cumulative Number of Customers includes each customer that is party to an in-service solar service agreement. For our leases, power purchase agreements ("PPA") and loan agreements, in-service means the related solar energy system and, if applicable, energy storage system, must have met all the requirements to begin operation and be interconnected to the electrical grid. For our Sunnova Protect services, in-service means the customer's system must have met the requirements to have the service activated. We do not include in our number of customers any customer under a lease, PPA or loan agreement for whom we have terminated the contract and removed the solar energy system. We also do not include in our number of customers any customer of our Sunnova Protect services that has been in default under his or her solar service agreement in excess of six months.
Weighted Average Number of Customers is calculated based on the number of months a given customer is in-service during a given measurement period. The weighted average number of customers reflects the number of customers at the beginning of the period, plus the total number of customers deployed during the period adjusted by a factor that accounts for the partial period nature of those new customers. For purposes of this calculation, we assume all customers deployed during a month were added in the middle of that month.
Number of Customers Deployed includes the change in the cumulative number of customers during a given measurement period.
Adjusted EBITDA is calculated as net income (loss) plus net interest expense, depreciation and amortization expense, income tax expense, financing deal costs, natural disaster losses and related charges, net, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, costs of our initial public offering ("IPO"), losses on unenforceable contracts, losses on extinguishment of long-term debt, realized and unrealized gains and losses on fair value option instruments and other non-cash items such as non-cash compensation expense, asset retirement obligation ("ARO") accretion expense and provision for current expected credit losses.
Interest Income and Principal Proceeds from Customer Notes Receivable, Net of Related Revenue are considered key performance metrics because under our loan agreements, the customer obtains financing for the purchase of a solar energy system from us, and we agree to operate and maintain the solar energy system throughout the duration of the agreement. Pursuant to the terms of the loan agreement, the customer makes scheduled principal and interest payments to us and has the option to prepay principal at any time in part or in full. Whereas we typically recognize payments from customers under our leases and PPAs as revenue, we recognize payments received from customers under our loan agreements (a) as interest income, to the extent attributable to earned interest on the contract that financed the customer's purchase of the solar energy system; (b) as a reduction of a note receivable on the balance sheet, to the extent attributable to a return of principal (whether scheduled or prepaid) on the contract that financed the customer's purchase of the solar energy system; and (c) as revenue, to the extent attributable to payments for operations and maintenance services provided by us.
Adjusted Operating Cash Flow is calculated as net cash used in operating activities plus principal proceeds from customer notes receivable, financed insurance payments and distributions to redeemable noncontrolling interests less derivative breakage fees from financing structure changes, payments to dealers for exclusivity and other bonus arrangements, net inventory and prepaid inventory (sales) purchases and payments of non-capitalized costs related to our IPO.
Adjusted Operating Expense is calculated as total operating expense less depreciation and amortization expense, financing deal costs, natural disaster losses and related charges, net, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, costs of our IPO, losses on unenforceable contracts and other non-cash items such as non-cash compensation expense, ARO accretion expense and provision for current expected credit losses.
Estimated Gross Contracted Customer Value represents the sum of the present value of the remaining estimated future net cash flows we expect to receive from existing customers during the initial contract term of our leases and PPAs, which are typically 25 years in length, plus the present value of future net cash flows we expect to receive from the sale of related solar renewable energy certificates ("SREC"), either under existing contracts or in future sales, plus the carrying value of outstanding customer loans on our balance sheet. From these aggregate estimated initial cash flows, we subtract the present value of estimated net cash distributions to redeemable noncontrolling interests and estimated operating, maintenance and administrative expenses associated with the solar service agreements. These estimated future cash flows reflect the projected monthly customer payments over the life of our solar service agreements and depend on various factors including but not limited to solar service agreement type, contracted rates, expected sun hours and the projected production capacity of the solar equipment installed. For the purpose of calculating this metric, we discount all future cash flows at 6% "unless otherwise specified". The anticipated operating, maintenance and administrative expenses included in the calculation of estimated gross contracted customer value include, among other things, expenses related to accounting, reporting, audit, insurance, maintenance and repairs. In the aggregate, we estimate these expenses are $20 per kilowatt per year initially, with 2% annual increases for inflation. We do not include maintenance and repair costs for inverters and similar equipment as those are largely covered by the applicable product and dealer warranties for the life of the product, but we do include additional cost for energy storage systems, which are only covered by a 10-year warranty.
Estimated Gross Renewal Customer Value represents the sum of the present value of future net cash flows we would receive from customers during two five-year renewal terms of our leases and PPAs, plus the present value of future net cash flows we expect to receive from the sale of related SRECs, either under existing contracts or in future sales. From these aggregate estimated renewal cash flows we subtract the present value of estimated net cash distributions to redeemable noncontrolling interests and the estimated operating, maintenance and administrative expenses associated with the solar service agreements. For the purpose of calculating this metric, we discount all future cash flows at 6% "unless otherwise specified". To calculate estimated renewal gross customer value, we use the established industry convention, which assumes 100% of solar leases and PPAs are renewed, due to the expected useful life of the system and costs to the customer associated with an election to purchase or remove the equipment. We further assume that these contracts are renewed at 90% of the contractual price in effect at expiration of the term of the solar service agreement. Because the customer has two renewal options of five years each, for the second renewal period we assume a contractual price of 90% of the price in the first renewal period. Our loan agreements do not contain a renewal feature, and therefore are not included in estimated renewal gross customer value.
Estimated Net Contracted Customer Value represents estimated gross contracted customer value, less debt, plus cash and restricted cash, construction in progress, inventory, prepaid inventory and inventory receivable.
Estimated Net System Value Deployed represents the sum of estimated gross customer value (which includes both contracted and renewal value), plus expected or received utility and up-front governmental incentives, to the extent not included in such estimated gross customer value, plus expected or received contributions from tax equity fund investors for redeemable noncontrolling interests in tax equity vehicles, as each relates to new customers placed in service within a specified period. From these aggregate estimated values, we subtract payments made or expected to be made to our dealers associated with customer solar energy systems.
Estimated Net System Value Deployed, Leases and PPAs represents the Estimated Net System Value Deployed attributable to our lease and PPA contracts and excludes amounts attributable to our loan contracts.
Creation Costs represents the property and equipment attributable to solar energy systems over the period plus all cash paid for customer notes receivable during the period plus the average amount recognized in each quarter for the trailing twelve months of payments to dealers for exclusivity and other bonus arrangements.
Creation Costs, Leases and PPAs represents Creation Costs attributable to our lease and PPA contracts and excludes amounts attributable to our loan contracts.
Cumulative Capital Deployed represents the property and equipment attributable to solar energy systems plus net customer notes receivable, less deferred revenue in other current liabilities and other long-term liabilities, plus payments to dealers for exclusivity and other bonus arrangements.
26
Sunnova
Investor
Relations
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Rodney McMahan - Investors Kelsey Hultberg - Media
investors.sunnova.com
IR@sunnova.com 877-770-5211
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Sunnova Energy International Inc. published this content on 15 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2020 20:39:07 UTC
