Press Release Details

Vivint Solar Reports Second Quarter 2018 Results

Aug, 07 2018

LEHI, Utah, Aug. 7, 2018 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), today announced financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Operating Highlights

Key operating and development highlights include:

  • MWs Booked of approximately 64 MWs for the quarter.
  • MWs Installed of approximately 47 MWs for the quarter. Total cumulative MWs installed were approximately 952 MWs.
  • Installations were 6,678 for the quarter. Cumulative installations were 139,321.
  • Estimated Retained Value increased by approximately $112 million during the quarter to approximately $1.8 billion. Estimated Retained Value per Watt at quarter end was $2.06.
  • Cost per Watt was $3.11, a decrease from $3.15 in the first quarter of 2018 and an increase from $2.88 in the second quarter of 2017.

Financing Activity

As of June 30, 2018, the company had $375 million in undrawn capacity in the aggregation facility and approximately 62 MWs of available installation capacity remaining in its tax equity funds. Subsequent to quarter end, the company closed a new tax equity partnership with a $50 million commitment that will fund the installation of approximately 32 MWs with a new tax equity investor. In addition, the company entered into a project financing transaction with a total commitment of up to $327 million for 95 MWs of new residential installations.

Summary Second Quarter 2018 Financial Results

$ amounts in millions, except per share data











Three Months Ended June 30,


2018



2017



YoY

Revenue:










     Operating leases and incentives

$

54.8



$

43.4



up 26%

     Solar energy system and product sales


26.0




29.6



down 12%

Total Revenue


80.8




73.0



up 11%

Cost of revenue:










     Operating leases and incentives


41.4




33.8



up 23%

     Solar energy system and product sales


19.0




22.8



down 17%

Total cost of revenue


60.4




56.6



up 7%

Gross profit


20.4




16.4



up 25%

Loss from Operations


(16.1)




(14.3)



down 12%

Net income

$

18.1



$

5.0



up 264%

Net income per diluted share

$

0.15



$

0.04



up 275%

Non-GAAP net loss per share

$

(0.50)



$

(0.33)



down 52%


Note: Totals may not sum due to rounding.

Guidance for the Third Quarter 2018

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 projected 2018 financial results.

For the third quarter of 2018, Vivint Solar expects:

  • MW Installed: 51 to 54 MWs
  • Cost per Watt: $3.15 - $3.23

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Tuesday, August 7, 2018, at 5:00 p.m. ET to discuss these financial results. To access the conference call, dial 1.866.393.4306 or 1.734.385.2616 for international callers. The conference ID is 118 1885. A listen-only webcast will be accessible on the investor relations page of the company's website at investors.vivintsolar.com/ and will be archived and available on this site until October 31, 2018. 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 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 over time. Offering integrated residential solar solutions for the entire customer lifecycle, Vivint Solar designs and installs the solar energy systems for its customers, and offers monitoring and maintenance services. In addition to being able to purchase a solar energy system outright, customers may benefit from Vivint Solar's affordable, flexible financing options, power purchase agreements, or lease agreements, where available. 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, and 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 growth, product offering mix, and costs 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 and expressly disclaims 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 investors.vivintsolar.com/.

 


Vivint Solar, Inc.

Condensed Consolidated Unaudited Balance Sheets

(In thousands)









June   30,



December   31,


2018



2017

ASSETS







Current assets:







Cash and cash equivalents

$

174,006



$

108,452

Accounts receivable, net


24,354




19,665

Inventories


13,135




22,597

Prepaid expenses and other current assets


25,620




34,049

Total current assets


237,115




184,763

Restricted cash and cash equivalents


66,694




46,486

Solar energy systems, net


1,784,800




1,673,532

Property and equipment, net


12,018




15,078

Intangible assets, net


595




862

Prepaid tax asset, net





505,883

Other non-current assets, net


28,064




37,325

TOTAL ASSETS

$

2,129,286



$

2,463,929

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY







Current liabilities:







Accounts payable

$

44,435



$

40,736

Accounts payable—related party


73




163

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


10,114




16,437

Accrued compensation


18,015




20,992

Current portion of long-term debt


10,018




13,585

Current portion of deferred revenue


22,108




41,846

Current portion of capital lease obligation


2,758




4,166

Accrued and other current liabilities


26,090




29,675

Total current liabilities


133,611




167,600

Long-term debt, net of current portion


1,110,044




925,964

Deferred revenue, net of current portion


12,027




29,200

Capital lease obligation, net of current portion


957




1,599

Deferred tax liability, net


385,907




342,382

Other non-current liabilities


16,870




13,674

Total liabilities


1,659,416




1,480,419

Commitments and contingencies







Redeemable non-controlling interests


122,647




122,444

Stockholders' equity:







Common stock


1,185




1,151

Additional paid-in capital


567,372




559,788

Accumulated other comprehensive (loss) income


(3,185)




6,905

(Accumulated deficit) retained earnings


(258,899)




213,107

Total stockholders' equity


306,473




780,951

Non-controlling interests


40,750




80,115

Total equity


347,223




861,066

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

2,129,286



$

2,463,929

 


Vivint Solar, Inc.

Condensed Consolidated Unaudited Statements of Operations

(In thousands, except per share data)

















Three Months Ended



Six Months Ended


June   30,



June   30,


2018



2017



2018



2017

Revenue:















Operating leases and incentives

$

54,765



$

43,413



$

85,879



$

73,802

Solar energy system and product sales


26,033




29,582




63,169




52,307

Total revenue


80,798




72,995




149,048




126,109

Cost of revenue:















Cost of revenue—operating leases and incentives


41,366




33,763




80,053




68,833

Cost of revenue—solar energy system and product sales


18,990




22,831




45,035




41,496

Total cost of revenue


60,356




56,594




125,088




110,329

Gross profit


20,442




16,401




23,960




15,780

Operating expenses:















Sales and marketing


14,033




9,411




25,158




18,229

Research and development


511




895




997




1,791

General and administrative


21,879




20,301




41,730




40,880

Amortization of intangible assets


130




139




266




279

Total operating expenses


36,553




30,746




68,151




61,179

Loss from operations


(16,111)




(14,345)




(44,191)




(45,399)

Interest expense


11,336




16,838




28,258




31,559

Other (income) expense, net


(4,109)




715




(6,370)




991

Loss before income taxes


(23,338)




(31,898)




(66,079)




(77,949)

Income tax expense


35,352




5,156




53,995




14,557

Net loss


(58,690)




(37,054)




(120,074)




(92,506)

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


(76,806)




(42,034)




(125,214)




(110,778)

Net income available to common stockholders

$

18,116



$

4,980



$

5,140



$

18,272

Net income available per share to common stockholders:















Basic

$

0.16



$

0.04



$

0.04



$

0.16

Diluted

$

0.15



$

0.04



$

0.04



$

0.16

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















Basic


116,650




112,351




115,907




111,562

Diluted


121,753




117,570




120,969




116,988

 


Vivint Solar, Inc.

Condensed Consolidated Unaudited Statements of Cash Flows

(In thousands)

















Three Months Ended



Six Months Ended


June   30,



June   30,


2018



2017



2018



2017

CASH FLOWS FROM OPERATING ACTIVITIES:















Net loss

$

(58,690)



$

(37,054)



$

(120,074)



$

(92,506)

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















Depreciation and amortization


16,867




14,877




33,174




29,039

Amortization of intangible assets


130




139




266




279

Deferred income taxes


35,204




29,130




54,173




65,255

Stock-based compensation


3,812




3,330




6,781




7,252

Loss on solar energy systems and property and equipment


2,455




1,741




3,025




3,766

Non-cash interest and other expense


11,649




3,185




13,656




5,311

Reduction in lease pass-through financing obligation


(1,477)




(1,346)




(2,164)




(1,995)

Losses (gains) on interest rate swaps


983




717




(1,279)




993

Changes in operating assets and liabilities:















Accounts receivable, net


(6,118)




(4,534)




(4,689)




(9,015)

Inventories


2,655




(2,741)




9,462




(4,856)

Prepaid expenses and other current assets


(3,470)




(6,528)




8,276




21,373

Prepaid tax asset, net





(18,925)







(43,106)

Other non-current assets, net


(6,998)




(2,164)




(6,613)




(6,025)

Accounts payable


1,524




(756)




1,898




(115)

Accrued compensation


22




(259)




(2,329)




(2,022)

Deferred revenue


(1,431)




4,560




(10,514)




6,669

Accrued and other liabilities


(1,812)




(194)




(1,915)




6,279

Net cash used in operating activities


(4,695)




(16,822)




(18,866)




(13,424)

CASH FLOWS FROM INVESTING ACTIVITIES:















Payments for the cost of solar energy systems


(74,039)




(69,893)




(146,247)




(145,033)

Payments for property and equipment


(25)




(355)




(65)




(633)

Proceeds from disposals of solar energy systems and property and equipment


1,068




929




1,843




1,100

Net cash used in investing activities


(72,996)




(69,319)




(144,469)




(144,566)

CASH FLOWS FROM FINANCING ACTIVITIES:















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


65,516




56,954




108,287




115,514

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


(10,436)




(7,453)




(28,558)




(22,480)

Proceeds from long-term debt


836,000




20,000




876,000




273,750

Payments on long-term debt


(681,572)




(18,145)




(689,320)




(159,304)

Payments for debt issuance and deferred offering costs


(17,715)




(2,980)




(17,715)




(13,410)

Proceeds from lease pass-through financing obligation


645




635




1,497




1,487

Principal payments on capital lease obligations


(916)




(1,147)




(1,931)




(2,343)

Proceeds from issuance of common stock


630




86




837




233

Net cash provided by financing activities


192,152




47,950




249,097




193,447

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS


114,461




(38,191)




85,762




35,457

CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—Beginning of period


126,239




197,087




154,938




123,439

CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—End of period

$

240,700



$

158,896



$

240,700



$

158,896

 

Vivint Solar, Inc.

Key Operating Metrics
























Three Months Ended


June   30,



March   31,



June   30,


2018



2018



2017












 Installations


6,678




5,813




7,108

 Megawatts installed


47.0




40.4




46.9

 Cumulative installations


139,321




132,643




113,287

 Cumulative megawatts installed


952.3




905.3




773.8

 Estimated nominal contracted payments remaining (in millions)

$

3,267.3



$

3,128.2



$

2,802.4

      Estimated retained value under energy contracts (in millions)

$

1,379.8



$

1,295.7



$

1,121.6

      Estimated retained value of renewal (in millions)

$

424.7



$

396.6



$

339.0

 Estimated retained value (in millions)

$

1,804.5



$

1,692.3



$

1,460.6

 Estimated retained value per watt

$

2.06



$

2.02



$

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 contracts as of June 30, 2018, including both the contracted and estimated renewal portion, at a range of discount rates (retained value amounts in millions):



4%


6%


8%

 Estimated retained value under energy contracts

$

1,636.5


$

1,379.8


$

1,177.5

 Estimated retained value of renewal


658.4



424.7



277.0

 Total estimated retained value

$

2,294.9


$

1,804.5


$

1,454.5

 

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

We report GAAP EPS, which is based upon net income available 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 ($0.50) and ($1.04) for the three and six months ended June 30, 2018.

 

Vivint Solar, Inc.

Reconciliation from GAAP EPS to Non-GAAP EPS

(In thousands, except per share data)
































Three Months Ended


June   30, 2018



June   30, 2017


Net Loss



EPS



Net Loss



EPS

Net income available to common stockholders

$

18,116



$

0.16



$

4,980



$

0.04

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


(76,806)




(0.66)




(42,034)




(0.37)

Non-GAAP net loss

$

(58,690)



$

(0.50)



$

(37,054)



$

(0.33)

Weighted-average shares used in computing net loss per share






116,650








112,351






Six Months Ended


June   30, 2018



June   30, 2017


Net Loss



EPS



Net Loss



EPS

Net income available to common stockholders

$

5,140



$

0.04



$

18,272



$

0.16

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


(125,214)



$

(1.08)




(110,778)



$

(0.99)

Non-GAAP net loss

$

(120,074)



$

(1.04)



$

(92,506)



$

(0.83)

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






115,907








111,562

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
855-842-1844
ir@vivintsolar.com

Press Contact:

Helen Langan
385-202-6577
pr@vivintsolar.com

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/vivint-solar-reports-second-quarter-2018-results-300693320.html

SOURCE Vivint Solar

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NYSE: VSLR 5.08 -0.78% Change: -0.04 Volume: 524,340 View details December 12, 2018

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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

Government Affairs

Erica Dahl
Vice President, Government Affairs
385-455-5501
erica.dahl@vivintsolar.com