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Press Release Details

Vivint Solar Announces Fourth Quarter 2016 And Fiscal 2016 Financial Results

Mar, 16 2017

LEHI, Utah, March 16, 2017 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), today announced financial results for the fourth quarter and year ended December 31, 2016.

Fourth Quarter 2016 Operating Highlights

Key operating and development highlights for the quarter ended December 31, 2016 include:

  • MW Booked of approximately 57 MWs for the quarter.
  • MW Installed of approximately 47 MWs. Total cumulative MWs installed were approximately 681 MWs.
  • Installations were 6,460 for the quarter. Cumulative installations were 99,598.
  • Estimated Nominal Contracted Payments Remaining increased by approximately $136 million during the quarter and was approximately $2.6 billion.
  • Estimated Retained Value increased by approximately $86 million during the quarter to approximately $1.3 billion.
  • Estimated Retained Value per Watt was $1.98.
  • Cost per Watt was $3.08, an increase from the third quarter of 2016 and down from $3.12 in the fourth quarter of 2015.

Fourth Quarter 2016 GAAP Financial Results

Summary GAAP financial results for the quarter ended December 31, 2016 include:

  • Operating Leases and Incentives Revenue was $25.3 million, up 63% from $15.5 million in the fourth quarter of the prior year. Total revenue for the quarter was $41.8 million, up 161% from $16.0 million in the fourth quarter of the prior year.
  • Cost of Revenue – Operating Leases and Incentives was $35.2 million, down from $36.4 million in the same period of 2015.
  • Total Operating Expenses, including cost of revenue, were $79.9 million, compared to $71.7 million in the fourth quarter of 2015.
  • Loss from Operations was $38.1 million compared to $55.7 million in the same period of 2015.
  • GAAP Net Income Available (Loss Attributable) per Diluted Share to Common Stockholders was $0.18, up from ($0.12) in the fourth quarter of 2015.
  • Non-GAAP Net Loss Attributable Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share was ($0.41), up from ($0.50) in the same period of 2015. See below for a further discussion of Non-GAAP Loss per Share.
  • Cash and Cash Equivalents as of December 31, 2016 were $96.6 million.

Full Year 2016 GAAP Financial Results

Summary GAAP financial results for the full year ended December 31, 2016 include:

  • Operating Leases and Incentives Revenue was $105.4 million, up 72% from $61.2 million in 2015. Total revenue for the year was $135.2 million, up 111% from $64.2 million in the prior year.
  • Cost of Revenue – Operating Leases and Incentives was $150.8 million in 2016, up from $131.2 million in 2015.
  • Total Operating Expenses, including cost of revenue, were $337.7 million in 2016, compared to $295.3 million in 2015.
  • Loss from Operations was $202.5 million compared to $231.1 million in 2015.
  • GAAP Net Income Available (Loss Attributable) per Diluted Share to Common Stockholders was $0.16.
  • Non-GAAP Net Loss Attributable Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share was ($1.90), an increase from ($2.39) in 2015. See below for a further discussion of Non-GAAP Net Loss per Share.

Financing Activity

As of December 31, 2016, the Company had fully drawn down on its working capital facility, had $188 million in undrawn capacity in the aggregation facility, and had approximately 114 MWs of installation capacity remaining in our tax equity funds. On March 9, 2017, the Company extended the term of the availability period for borrowing under its aggregation credit facility by an additional three years to March 2020 and the final maturity to September 2020.

Guidance for First Quarter 2017 and Full Year 2017

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements supersede all prior statements regarding 2017 financial results.

For the first quarter of 2017, we expect:

  • MW Installed: 43 to 46 MWs
  • Cost per Watt: $ 2.95 - $ 3.05

For the full year 2017, we expect:

  • MW Installed: 210 - 230 MWs
  • Cost per Watt: $ 2.82 - $ 2.94

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Thursday, March 16, 2017, at 5:00 p.m. ET to discuss these financial results. To access the conference call, dial 1.877.201.0168 or 1.647.788.4901 for international callers. The conference ID is 5249 2827. A listen-only webcast will be accessible on the investor relations page of the Company's website at http://investors.vivintsolar.com and will be archived and available on this site until April 30, 2017. Participants should follow the instructions provided on the website to download and install the necessary audio applications in advance of the call. In addition, the earnings presentation slides will be available on the investor relations page of the site by 5:00 p.m. ET along with this press release and the financial information discussed on today's conference call at http://investors.vivintsolar.com.

About Vivint Solar

Vivint Solar is a leading full-service residential solar provider in the United States. With Vivint Solar, customers can power their homes with clean, renewable energy and typically achieve significant financial savings. Offering integrated residential solar solutions for the entire customer lifecycle, Vivint Solar designs, installs, monitors and services the solar energy systems for its customers. In addition to being able to purchase a solar energy system outright, customers may benefit from Vivint Solar's affordable, flexible financing options or power purchase agreements. For more information, visit www.vivintsolar.com or follow @VivintSolar on Twitter.

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 guidance for megawatts installed and cost per watt, installation capacity remaining in tax equity funds, growth prospects, and operating and financial results, such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, including 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 other federal and state incentives; 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; 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 http://investors.vivintsolar.com.

Vivint Solar, Inc.


Consolidated Unaudited Balance Sheets


(In thousands)











December 31,



December 31,



2016



2015


ASSETS








Current assets:








Cash and cash equivalents

$

96,586



$

92,213


Accounts receivable, net


12,658




3,636


Inventories


11,285




631


Prepaid expenses and other current assets


46,683




17,078


Total current assets


167,212




113,558


Restricted cash and cash equivalents


26,853




15,035


Solar energy systems, net


1,458,355




1,102,157


Property and equipment, net


23,199




48,168


Intangible assets, net


1,420




2,031


Goodwill





36,601


Prepaid tax asset, net


419,474




277,496


Other non-current assets, net


29,843




14,024


TOTAL ASSETS

$

2,126,356



$

1,609,070


LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY








Current liabilities:








Accounts payable

$

46,630



$

49,986


Accounts payable—related party


191




1,905


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


16,176




11,347


Accrued compensation


20,003




13,758


Current portion of long-term debt


6,252





Current portion of deferred revenue


19,911




4,968


Current portion of capital lease obligation


5,163




5,489


Accrued and other current liabilities


19,364




29,017


Total current liabilities


133,690




116,470


Long-term debt, net of current portion


750,728




415,850


Deferred revenue, net of current portion


34,379




43,304


Capital lease obligation, net of current portion


5,476




10,055


Deferred tax liability, net


395,218




216,033


Other non-current liabilities


10,355




28,565


Total liabilities


1,329,846




830,277


Commitments and contingencies








Redeemable non-controlling interests


129,676




169,541


Stockholders' equity:








Common stock


1,102




1,066


Additional paid-in capital


542,348




530,646


Accumulated other comprehensive income


7,631





Retained earnings (accumulated deficit)


5,217




(12,769)


Total stockholders' equity


556,298




518,943


Non-controlling interests


110,536




90,309


Total equity


666,834




609,252


TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

2,126,356



$

1,609,070


 

Vivint Solar, Inc.


Consolidated Unaudited Statements of Operations


(In thousands, except per share data)



















Three Months Ended



Year Ended



December 31,



December 31,



2016



2015



2016



2015


Revenue:
















Operating leases and incentives

$

25,320



$

15,488



$

105,353



$

61,150


Solar energy system and product sales


16,451




540




29,814




3,032


Total revenue


41,771




16,028




135,167




64,182


Operating expenses:
















Cost of revenue—operating leases and incentives


35,230




36,414




150,796




131,213


Cost of revenue—solar energy system and product sales


12,579




378




23,185




1,762


Sales and marketing


9,358




10,897




41,436




48,078


Research and development


761




1,352




2,979




3,901


General and administrative


21,796




20,716




81,802




92,664


Amortization of intangible assets


139




1,977




901




13,172


Impairment of goodwill and intangible assets








36,601




4,506


Total operating expenses


79,863




71,734




337,700




295,296


Loss from operations


(38,092)




(55,706)




(202,533)




(231,114)


Interest expense


11,469




4,360




34,008




12,568


Other income


(1,342)




(553)




(1,437)




(154)


Loss before income taxes


(48,219)




(59,513)




(235,104)




(243,528)


Income tax (benefit) expense


(2,812)




(6,240)




7,433




9,737


Net loss


(45,407)




(53,273)




(242,537)




(253,265)


Net loss attributable to non-controlling interests and redeemable non-controlling interests


(65,545)




(40,083)




(260,523)




(266,345)


Net income available (loss attributable) to common stockholders

$

20,138



$

(13,190)



$

17,986



$

13,080


Net income available (loss attributable) per share to common stockholders:
















Basic

$

0.18



$

(0.12)



$

0.17



$

0.12


Diluted

$

0.18



$

(0.12)



$

0.16



$

0.12


Weighted-average shares used in computing net income available (loss attributable) per share to common stockholders:
















Basic


110,198




106,551




108,190




106,088


Diluted


114,898




106,551




112,538




109,858


 

Vivint Solar, Inc.


Consolidated Unaudited Statements of Cash Flows


(In thousands)



















Three Months Ended



Year Ended



December 31,



December 31,



2016



2015



2016



2015


CASH FLOWS FROM OPERATING ACTIVITIES:
















Net loss

$

(45,407)



$

(53,273)



$

(242,537)



$

(253,265)


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
















Depreciation and amortization


14,445




8,153




46,821




24,924


Amortization of intangible assets


139




1,977




901




13,172


Impairment of goodwill and intangible assets








36,601




4,506


Deferred income taxes


49,178




29,986




174,090




107,466


Stock-based compensation


4,469




2,398




10,614




25,604


Loss on solar energy systems and property and equipment


1,856




(145)




6,432




1,024


Non-cash interest and other expense


2,198




1,167




7,161




3,724


Reduction in lease pass-through financing obligation


(960)




(231)




(4,239)




(231)


Gain on ineffective portion of cash flow hedge


(1,333)







(1,591)





Excess tax detriment from stock-based compensation


(433)







(1,713)





Changes in operating assets and liabilities, net of acquisitions:
















Accounts receivable, net


(578)




1,828




(9,022)




(1,799)


Inventories


(4,763)




(159)




(10,654)




143


Prepaid expenses and other current assets


(32,624)




(2,074)




(32,526)




(576)


Prepaid tax asset, net


(19,665)




(29,635)




(141,978)




(165,586)


Other non-current assets, net


(1,823)




(4,278)




(6,078)




(5,268)


Accounts payable


2,034




(4,934)




2,698




1,636


Accounts payable—related party


(234)




361




(1,714)




(227)


Accrued compensation


(2,767)




(4,605)




5,567




(892)


Deferred revenue


2,622




17,731




6,018




43,492


Accrued and other liabilities


(8,164)




(8,876)




(10,541)




12,909


Net cash used in operating activities


(41,810)




(44,609)




(165,690)




(189,244)


CASH FLOWS FROM INVESTING ACTIVITIES:
















Payments for the cost of solar energy systems


(87,362)




(156,725)




(405,635)




(540,399)


Payments for property and equipment


(88)




(1,025)




(2,785)




(6,307)


Proceeds from disposals of property and equipment


220







913





Change in restricted cash and cash equivalents


(3,384)




(1,863)




(11,818)




(8,519)


Proceeds from tax credits and U.S. Treasury grants


5,169







5,169





Purchase of intangible assets





454




(291)




(1,221)


Net cash used in investing activities


(85,445)




(159,159)




(414,447)




(556,446)


CASH FLOWS FROM FINANCING ACTIVITIES:
















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


40,700




60,658




277,848




292,729


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


(9,904)




(8,395)




(32,134)




(25,541)


Proceeds from long-term debt


88,989




162,850




589,246




310,850


Payments on long-term debt


(8,844)







(233,244)





Payments for debt issuance costs





(2,344)




(16,774)




(5,422)


Proceeds from lease pass-through financing obligation


971




3,223




2,388




7,228


Principal payments on capital lease obligations


(1,300)




(1,763)




(5,657)




(5,363)


Proceeds from issuance of common stock


192




1




2,837




649


Excess tax benefits from stock-based compensation





(4)







1,713


Payments for deferred offering costs











(589)


Net cash provided by financing activities


110,804




214,226




584,510




576,254


NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS


(16,451)




10,458




4,373




(169,436)


CASH AND CASH EQUIVALENTS—Beginning of period


113,037




81,755




92,213




261,649


CASH AND CASH EQUIVALENTS—End of period

$

96,586



$

92,213



$

96,586



$

92,213


 

Vivint Solar, Inc.


Key Operating Metrics



























Three Months Ended



December 31,



September



December 31,



2016



2016



2015














 Installations


6,460




8,266




8,411


 Megawatts installed


47.1




58.8




58.6


 Cumulative installations


99,598




93,138




68,527


 Cumulative megawatts installed


681.1




634.0




458.9


 Estimated nominal contracted payments remaining (in millions)

$

2,568.6



$

2,432.2



$

1,871.9


      Estimated retained value under energy contract (in millions)

$

1,015.1



$

948.3



$

705.6


      Estimated retained value of renewal (in millions)

$

299.4



$

280.0



$

200.5


 Estimated retained value (in millions)

$

1,314.5



$

1,228.3



$

906.1


 Estimated retained value per watt

$

1.98



$

1.96



$

1.98


 

Sensitivity Analysis for Retained Value

The following table provides quantitative sensitivity analysis of our estimate of retained value of solar energy systems under contract as of December 31, 2016, including both the contracted and estimated renewal portion, at a range of discount rates (retained value amounts in million):



4%




6%




8%


 Estimated retained value under energy contract

$

1,219.0



$

1,015.1



$

856.2


 Estimated retained value of renewal


473.5




299.4




191.4


 Total estimated retained value

$

1,692.5



$

1,314.5



$

1,047.6


 

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. Additionally, we have excluded the effect of the goodwill impairment for the year ended December 31, 2016 as it is a non-cash, non-recurring event that is not representative of our ongoing business. We believe that presenting non-GAAP EPS provides a meaningful supplemental measure of operating performance. 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 ($0.41) and ($1.90) for the three months and year ended December 31, 2016.

Vivint Solar, Inc.


Reconciliation from GAAP EPS to Non-GAAP EPS


(In thousands, except per share data)



































Three Months Ended



December 31, 2016



December 31, 2015



Net Loss



EPS



Net Loss



EPS


Net income available (loss attributable) to common stockholders

$

20,138



$

0.18



$

(13,190)



$

(0.12)


Net loss attributable to non-controlling interests and redeemable non-controlling interests


(65,545)




(0.59)




(40,083)




(0.38)


Non-GAAP net loss

$

(45,407)



$

(0.41)



$

(53,273)



$

(0.50)


Weighted-average shares used in computing net loss per share






110,198








106,551


 


Year Ended



December 31, 2016



December 31, 2015



Net Loss



EPS



Net Loss



EPS


Net income available (loss attributable) to common stockholders

$

17,986



$

0.17



$

13,080



$

0.12


Net loss attributable to non-controlling interests and redeemable non-controlling interests


(260,523)



$

(2.41)




(266,345)



$

(2.51)


Impairment of goodwill


36,601



$

0.34






$


Non-GAAP net loss

$

(205,936)



$

(1.90)



$

(253,265)



$

(2.39)


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






108,190








106,088


 

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:

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

Media Contact:

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

Agency Contact:

Ashlyn Hewlett
Method Communications
801-461-9772
ashlyn@methodcommunications.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vivint-solar-announces-fourth-quarter-2016-and-fiscal-2016-financial-results-300424993.html

SOURCE Vivint Solar

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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