First name*  
Last name*  
Phone*  
Zip*  
Email*  
Enter Text:
 
Enter the code shown above.
 

Press Release Details

Vivint Solar Announces Third Quarter 2015 Financial Results

Nov, 16 2015

Megawatts Installed Increased 24% Year-over-Year
Retained Value Increased 99% Year-over-Year
Revenue Increased 170% Year-over-Year

LEHI, Utah, Nov. 16, 2015 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), today announced financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 Operating Highlights

Key operating and development highlights for the quarter ended September 30, 2015 include:

  • MW Booked of approximately 71 MWs for the quarter, up 15% year-over-year.
  • MW Installed of approximately 61 MWs, up 24% year-over-year. Total cumulative MWs installed were approximately 400 MWs.
  • Installations were 8,658 for the quarter, up 25% year-over-year. Cumulative installations were 60,116.
  • Estimated Nominal Contracted Payments Remaining increased by approximately $214 million during the quarter and was approximately $1.7 billion, up 97% year-over-year.
  • Estimated Retained Value increased by approximately $113 million during the quarter to approximately $793 million, up 99% year-over-year.
  • Estimated Retained Value per Watt was $1.98.
  • Cost per Watt was $3.12, up from $3.00 in the second quarter of 2015 and flat compared to the third quarter of 2014.

Third Quarter 2015 GAAP Financial Results

Summary GAAP financial results for the quarter ended September 30, 2015 include:

  • Operating Leases and Incentives Revenue was $21.8 million, up 205% from $7.1 million in the third quarter of the prior year. Total revenue for the quarter was $22.5 million, up 170% from $8.3 million in the third quarter of the prior year.
  • Cost of Revenue – Operating Leases and Incentives was $37.6 million, up from $19.5 million in the same period of 2014.
  • Total Operating Expenses, including cost of revenue, were $76.9 million, compared to $66.7 million in the third quarter of 2014. Operating expenses included non-cash stock-based compensation expense of $2.6 million and amortization of intangibles of $3.7 million.
  • Loss from Operations was $54.4 million compared to $58.4 million in the same period of 2014.
  • GAAP Net Income Available to Stockholders per Diluted Share was $0.00, up from ($0.45) in the third quarter of 2014.
  • Non-GAAP Loss Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share was ($0.47), up from ($0.66) in the same period of 2014. See below for a further discussion of Non-GAAP Loss per Share.
  • Cash and Cash Equivalents as of September 30, 2015 were $81.8 million.

Financing Activity

As of September 30, 2015, the Company had $77 million in undrawn capacity in the working capital facility, $192 million in undrawn capacity in the aggregation facility, and 167 MWs of installation capacity remaining in our tax equity funds.

About Vivint Solar

Vivint Solar is a leading provider of distributed solar energy systems – electricity generated by a solar energy system installed at a customer's location – to residential customers in the United States. Vivint Solar's customers pay little to no money upfront, receive significant savings relative to utility generated electricity rates and continue to benefit from guaranteed energy prices over the 20-year term of their contracts.  Vivint Solar finances, designs, installs, monitors and services the solar energy systems to make things easy for its customers. For more information, visit www.vivintsolar.com or follow @VivintSolar.

Note on 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 Vivint Solar's growth prospects, and operating and financial results such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, estimated shares outstanding, the capacity of solar energy systems expected to be installed, estimated total revenue, and estimated total operating expenses and the assumptions related to the calculation of the foregoing metrics.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements should not be read as a guarantee of future performance or results, and they will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. These statements are based on current expectations and assumptions regarding future events and business performance as of the date of this press release, and they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including but not limited to: the availability of additional financing on acceptable terms; changes in the retail price of traditional utility generated electricity; changes in electric utility policies and regulations; the availability of rebates, tax credits and other incentives, including solar renewable energy certificates, or SRECs and state incentives, that affect the pricing of our offering; regulations and policies related to net metering; changes in regulations, tariffs and other trade barriers and tax policy affecting us and our industry; our ability to manage our recent and future growth effectively, including attracting, training and retaining sales personnel and solar energy system installers; the availability and price of solar panels and other system components, the assumptions employed in calculating our operating metrics may be inaccurate; Vivint Solar's limited operating history, particularly as a new public company; and such other risks identified in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, or SEC, from time to time. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in those statements will be achieved or will occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Except as required by law, Vivint Solar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. You should read the documents Vivint Solar has filed with the SEC for more complete information about the company. These documents are available on both the EDGAR section of the SEC's website at www.sec.gov and the Investor Relations section of the company's website at www.vivintsolar.com


 

Vivint Solar, Inc.


Condensed Consolidated Unaudited Balance Sheets


(In thousands)











September 30,



December 31,



2015



2014



(Unaudited)






ASSETS








Current assets:








Cash and cash equivalents

$

81,755



$

261,649


Accounts receivable, net


5,464




1,837


Inventories


472




774


Prepaid expenses and other current assets


20,861




16,806


Total current assets


108,552




281,066


Restricted cash and cash equivalents


13,172




6,516


Solar energy systems, net


986,908




588,167


Property and equipment, net


34,048




13,024


Intangible assets, net


4,462




18,487


Goodwill


36,601




36,601


Prepaid tax asset, net


247,861




111,910


Other non-current assets, net


9,409




8,553


TOTAL ASSETS

$

1,441,013



$

1,064,324


LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY








Current liabilities:








Accounts payable

$

87,890



$

51,354


Accounts payable—related party


1,544




2,132


Distributions payable to non-controlling interests and redeemable non-controlling interests


8,316




6,780


Accrued compensation


21,102




16,794


Current portion of deferred revenue


423




314


Current portion of capital lease obligation


5,147




3,502


Accrued and other current liabilities


34,286




14,016


Total current liabilities


158,708




94,892


Capital lease obligation, net of current portion


9,801




6,176


Long-term debt


253,000




105,000


Deferred tax liability, net


193,692




112,227


Deferred revenue, net of current portion


30,118




4,466


Other non-current liabilities


15,255





Total liabilities


660,574




322,761


Commitments and contingencies








Redeemable non-controlling interests


171,179




128,427


Stockholders' equity:








Common stock


1,065




1,053


Additional paid-in capital


528,252




502,785


Retained earnings (accumulated deficit)


421




(25,849)


Total stockholders' equity


529,738




477,989


Non-controlling interests


79,522




135,147


Total equity


609,260




613,136


TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

1,441,013



$

1,064,324


 

Vivint Solar, Inc.


Condensed Consolidated Unaudited Statements of Operations


(In thousands, except per share data)



















Three Months Ended



Nine Months Ended



September 30,



September 30,



2015



2014



2015



2014


Revenue:
















Operating leases and incentives

$

21,781



$

7,131



$

45,662



$

15,798


Solar energy system and product sales


693




1,202




2,492




2,600


Total revenue


22,474




8,333




48,154




18,398


Operating expenses:
















Cost of revenue—operating leases and incentives


37,624




19,515




94,799




47,161


Cost of revenue—solar energy system and product sales


470




627




1,384




1,510


Sales and marketing


12,051




5,220




37,181




16,229


Research and development


1,047




431




2,549




1,403


General and administrative


21,954




37,170




71,948




63,276


Amortization of intangible assets


3,711




3,727




11,195




11,155


Impairment of intangible assets








4,506





Total operating expenses


76,857




66,690




223,562




140,734


Loss from operations


(54,383)




(58,357)




(175,408)




(122,336)


Interest expense


3,351




3,261




8,208




7,335


Other expense


26




297




399




1,462


Loss before income taxes


(57,760)




(61,915)




(184,015)




(131,133)


Income tax (benefit) expense


(7,448)




(10,222)




15,977




(3,286)


Net loss


(50,312)




(51,693)




(199,992)




(127,847)


Net loss attributable to non-controlling interests and redeemable

   non-controlling interests


(50,780)




(16,415)




(226,262)




(105,103)


Net income available (loss attributable) to common stockholders

$

468



$

(35,278)



$

26,270



$

(22,744)


Net income available (loss attributable) per share to common

   stockholders:
















Basic

$

0.00



$

(0.45)



$

0.25



$

(0.30)


Diluted

$

0.00



$

(0.45)



$

0.24



$

(0.30)


Weighted-average shares used in computing net income

   available (loss attributable) per share to common stockholders:
















Basic


106,492




78,428




105,932




76,160


Diluted


110,223




78,428




109,694




76,160


 

Vivint Solar, Inc.


Condensed Consolidated Unaudited Statements of Cash Flows


(In thousands)



















Three Months Ended



Nine Months Ended



September 30,



September 30,



2015



2014



2015



2014


CASH FLOWS FROM OPERATING ACTIVITIES:
















Net loss

$

(50,312)



$

(51,693)



$

(199,992)



$

(127,847)


Adjustments to reconcile net loss to net cash used in operating activities:
















Depreciation and amortization


7,018




2,426




16,771




5,435


Amortization of intangible assets


3,711




3,769




11,195




11,270


Impairment of intangible assets








4,506





Loss on removal of solar energy systems


1,169







1,169





Stock-based compensation


2,596




20,030




23,206




20,846


Amortization of deferred financing costs


885




855




2,557




1,522


Noncash contributions for services





62







181


Noncash interest expense





1,403







4,280


Deferred income taxes


23,277




9,702




77,480




45,567


Changes in operating assets and liabilities, net of acquisitions:
















Accounts receivable, net


(41)




(192)




(3,627)




(1,893)


Inventories


(130)




5




302




21


Prepaid expenses and other current assets


1,246




(2,682)




1,498




(11,610)


Prepaid tax asset, net


(48,758)




(22,017)




(135,951)




(45,817)


Other non-current assets, net


(762)




(5,079)




(990)




(11,350)


Accounts payable


5,519




(3,848)




6,570




1,243


Accounts payable—related party


(434)




(2,300)




(588)




(3,061)


Accrued compensation


102




565




3,713




(2,786)


Deferred revenue


23,010




660




25,761




1,340


Accrued and other current liabilities


10,858




1,680




21,785




7,788


Net cash used in operating activities


(21,046)




(46,654)




(144,635)




(104,871)


CASH FLOWS FROM INVESTING ACTIVITIES:
















Payments for the cost of solar energy systems


(149,624)




(99,163)




(383,674)




(249,612)


Payment in connection with business acquisition, net of cash acquired











(12,040)


Payments for property and equipment


(1,880)




(2,908)




(5,282)




(3,056)


Change in restricted cash and cash equivalents


(524)




84




(6,656)




(1,516)


Purchase of intangible assets


(1,346)




(269)




(1,675)




(269)


Proceeds from U.S. Treasury grants











190


Net cash used in investing activities


(153,374)




(102,256)




(397,287)




(266,303)


CASH FLOWS FROM FINANCING ACTIVITIES:
















Proceeds from investment by non-controlling interests and redeemable non-controlling interests


63,288




83,417




232,071




240,863


Distributions paid to non-controlling interests and redeemable non- controlling interests


(6,457)




(3,552)




(17,146)




(5,484)


Proceeds from long-term debt


44,500




87,000




148,000




87,000


Proceeds from short-term debt











75,500


Payments on short-term debt





(75,500)







(75,500)


Payments for debt issuance costs








(3,078)





Proceeds from lease pass-through financing obligation


4,005







4,005





Proceeds from revolving lines of credit—related party





40,500







154,500


Payments on revolving lines of credit—related party





(40,500)







(141,500)


Principal payments on capital lease obligations


(1,530)




(695)




(3,600)




(1,810)


Proceeds from issuance of common stock


60




103,500




648




103,500


Payments for deferred offering costs





(4,341)




(589)




(5,784)


Excess tax effects from stock-based compensation


85







1,717





Net cash provided by financing activities


103,951




189,829




362,028




431,285


NET (DECREASE) INCREASE IN CASH AND CASH

   EQUIVALENTS


(70,469)




40,919




(179,894)




60,111


CASH AND CASH EQUIVALENTS—Beginning of period


152,224




25,230




261,649




6,038


CASH AND CASH EQUIVALENTS—End of period

$

81,755



$

66,149



$

81,755



$

66,149


 


Vivint Solar, Inc.


Key Operating Metrics















Three Months Ended



September 30,



June 30,



March 31,



2015



2015



2015














 Installations


8,658




9,312




6,426


 Megawatts installed


60.5




65.5




46.2


 Cumulative installations


60,116




51,458




42,146


 Cumulative megawatts installed


400.4




339.9




274.4


 Estimated nominal contracted payments remaining (in millions)

$

1,656.5



$

1,442.5



$

1,204.8


      Estimated retained value under energy contract (in millions)

$

616.6



$

531.3



$

442.8


      Estimated retained value of renewal (in millions)

$

176.0



$

148.7



$

117.2


 Estimated retained value (in millions)

$

792.6



$

680.0



$

560.0


 Estimated retained value per watt

$

1.98



$

2.00



$

2.05


 

Non-GAAP Earnings per Share (EPS) Before Noncontrolling Interests

We report GAAP EPS, which is based upon net income available (loss attributable) to common stockholders. We also report non-GAAP EPS. The difference between GAAP EPS and non-GAAP EPS is that non-GAAP EPS is based on net loss, which excludes net loss attributable to non-controlling interests and redeemable non-controlling interests. As we are in a net loss position for all periods reported, potentially issuable shares are excluded from the diluted EPS calculation since the effect would be antidilutive. Therefore, basic and diluted non-GAAP EPS are the same in each period presented.

Under GAAP accounting, we report net loss attributable to non-controlling interests and redeemable non-controlling interests to reflect our joint venture fund investors' allocable share in the results of these joint venture investment funds. Net loss attributable to non-controlling interests and redeemable non-controlling interests is calculated based primarily on the hypothetical liquidation at book value, or HLBV, method, which assumes that the joint venture funds are liquidated at the reporting date, even though liquidation may or may not ever occur. Additionally the returns that will be allocated to the investors over the expected terms of the investment funds may differ significantly from the amounts calculated under the HLBV method. Accordingly, we also report non-GAAP EPS based on our losses before net loss attributable to non-controlling interests and redeemable non-controlling interests per share, which we view as a better measure of our operating performance.  Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

According to this definition, the non-GAAP loss before the allocation of loss attributable to non-controlling interests and redeemable non-controlling interests per share was ($0.47) and ($1.89) for the three and nine months ended September 30, 2015.


Vivint Solar, Inc.


Non-GAAP Net Loss per Share


(In thousands, except per share data)



















Three Months Ended



Nine Months Ended



September 30,



September 30,



2015



2014



2015



2014


Net loss

$

(50,312)



$

(51,693)



$

(199,992)



$

(127,847)


Net loss per share:
















Basic and diluted

$

(0.47)



$

(0.66)



$

(1.89)



$

(1.68)


Weighted-average shares used in computing net loss per share:
















Basic and diluted


106,492




78,428




105,932




76,160


Glossary of Definitions

"Installations" represents the number of solar energy systems installed on customers' premises.

"MWs or megawatts" represents the DC nameplate megawatt production capacity.

"MW Booked" represents the aggregate megawatt nameplate capacity of solar energy systems that were permitted during the period net of cancellations in the period.

"MW Installed" represents the aggregate megawatt nameplate capacity of solar energy systems for which panels, inverters, and mounting and racking hardware have been installed on customer premises in the period.

"Nominal Contracted Payments Remaining" equals the sum of the remaining cash payments that Vivint Solar's customers are expected to pay over the term of their agreements for systems installed as of the measurement date. For a power purchase agreement, Vivint Solar multiplies the contract price per kilowatt-hour by the estimated annual energy output of the associated solar energy system to determine the estimated nominal contracted payments. For a customer lease, Vivint Solar includes the monthly fees and upfront fee, if any, as set forth in the lease.

"Retained Value" represents the net cash flows, discounted at 6%, that Vivint Solar expects to receive from customers pursuant to long-term customer contracts net of estimated cash distributions to fund investors and estimated operating expenses for systems installed as of the measurement date. For purposes of the calculation, Vivint Solar aggregates the estimated retained value from the solar energy systems during the typical 20-year term of Vivint Solar's contracts, which Vivint Solar refers to as estimated retained value under energy contracts, and the estimated retained value associated with an assumed 10-year renewal term following the expiration of the initial contract term, which Vivint Solar refers to as estimated retained value of renewal. To calculate estimated retained value of renewal, Vivint Solar assumes all contracts are renewed at 90% of the contractual price in effect at the expiration of the initial term.

"Retained Value per Watt" is calculated by dividing the estimated retained value as of the measurement date by the aggregate nameplate capacity of solar energy systems under long-term customer contracts that have been installed as of such date, and is subject to the same assumptions and uncertainties as estimated retained value.

"Undeployed Tax Equity Financing Capacity" represents a forecast of the amount of megawatts that can be deployed based on committed available tax equity financing for Energy Contracts.

Investor Contact:

Vivint Solar
Rob Kain
Vice President of Investor Relations
801-234-7066
ir@vivintsolar.com

Media Contact:

Vivint Solar
Casey Briggs
Public Relations
801-229-6443
pr@vivintsolar.com

Vivint Solar Logo.

Logo - http://photos.prnewswire.com/prnh/20130806/LA59260LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vivint-solar-announces-third-quarter-2015-financial-results-300179624.html

SOURCE Vivint Solar

Stock Price

NYSE: VSLR 4.07 +1.77% Change: +0.07 Volume: 6,296 View details January 17, 2018

Email Alerts

Email Address *
Mailing Lists *




 
Enter the code shown above.

Contact

Investors

Rob Kain
Vice President, Investor Relations
855-842-1844
ir@vivintsolar.com

Press

Helen Langan
Director, Public Relations
385-202-6577
pr@vivintsolar.com