Press Release Details

Vivint Solar Reports Third Quarter 2018 Results

Nov, 06 2018

LEHI, Utah, Nov. 6, 2018 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), today announced financial results for the third quarter ended September 30, 2018.

Third Quarter 2018 Operating Highlights

Key operating and development highlights include:

  • MWs Booked of approximately 74 MWs for the quarter.
  • MWs Installed of approximately 54 MWs for the quarter. Total cumulative MWs installed were approximately 1,007 MWs.
  • Installations were 7,547 for the quarter. Cumulative installations were 146,868.
  • Estimated Gross Retained Value increased by approximately $74 million during the quarter to approximately $1.9 billion. Estimated Retained Value per Watt at quarter end was $2.03.
  • Cost per Watt was $3.21, an increase from $3.11 in the second quarter of 2018 and an increase from $2.94 in the third quarter of 2017. Adjusting for closing fees associated with the forward flow financing agreement, Vivint Solar's cost per Watt would have been $3.06.

Financing Activity

As of September 30, 2018, the company had $345 million in undrawn capacity in the aggregation facility, $118 million in undrawn capacity in the forward flow loan facility, and approximately 139 MWs of available installation capacity remaining in its tax equity funds.

Summary Third Quarter 2018 Financial Results

$ amounts in millions, except per share data













Three Months Ended Sept. 30,



2018



2017



YoY


Revenue:












     Operating leases and incentives

$

53.5



$

45.9



up 16%


     Solar energy system and product sales


24.3




29.2



down 17%


Total Revenue


77.8




75.1



up 4%


Cost of revenue:












     Operating leases and incentives


42.1




34.7



up 21%


     Solar energy system and product sales


17.7




22.2



down 20%


Total cost of revenue


59.8




56.9



up 5%


Gross profit


18.0




18.2



down 1%


Loss from Operations


(28.3)




(12.0)



down 136%


Net (loss) income

$

(7.9)



$

6.9



down 214%


Net (loss) income per share

$

(0.07)



$

0.06



down 217%


Non-GAAP net loss per share

$

(0.61)



$

(0.33)



down 85%


Guidance for the Fourth 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 fourth quarter of 2018, Vivint Solar expects:

  • MW Installed: 53 to 57 MWs
  • Cost per Watt: $3.00 - $3.07

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Tuesday, November 6, 2018, at 5:00 p.m. ET to discuss these financial results. To access the conference call, dial 1.833.286.5799 or 1.647.689.4443 for international callers. The conference ID is 357 9119. 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 February 28, 2019. 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)











September   30,



December   31,



2018



2017


ASSETS








Current assets:








Cash and cash equivalents

$

188,627



$

108,452


Accounts receivable, net


19,910




19,665


Inventories


15,780




22,597


Prepaid expenses and other current assets


24,662




34,049


Total current assets


248,979




184,763


Restricted cash and cash equivalents


68,341




46,486


Solar energy systems, net


1,858,743




1,673,532


Property and equipment, net


11,082




15,078


Intangible assets, net


676




862


Prepaid tax asset, net





505,883


Other non-current assets, net


28,696




37,325


TOTAL ASSETS

$

2,216,517



$

2,463,929


LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY








Current liabilities:








Accounts payable

$

44,909



$

40,736


Accounts payable—related party


83




163


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


11,236




16,437


Accrued compensation


25,789




20,992


Current portion of long-term debt


10,515




13,585


Current portion of deferred revenue


25,480




41,846


Current portion of capital lease obligation


2,305




4,166


Accrued and other current liabilities


37,328




29,675


Total current liabilities


157,645




167,600


Long-term debt, net of current portion


1,143,957




925,964


Deferred revenue, net of current portion


12,728




29,200


Capital lease obligation, net of current portion


648




1,599


Deferred tax liability, net


413,076




342,382


Other non-current liabilities


12,522




13,674


Total liabilities


1,740,576




1,480,419


Commitments and contingencies








Redeemable non-controlling interests


121,820




122,444


Stockholders' equity:








Common stock


1,193




1,151


Additional paid-in capital


570,506




559,788


Accumulated other comprehensive income


95




6,905


(Accumulated deficit) retained earnings


(266,767)




213,107


Total stockholders' equity


305,027




780,951


Non-controlling interests


49,094




80,115


Total equity


354,121




861,066


TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

2,216,517



$

2,463,929


 


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,



2018



2017



2018



2017


Revenue:
















Operating leases and incentives

$

53,470



$

45,909



$

139,349



$

119,711


Solar energy system and product sales


24,346




29,230




87,515




81,537


Total revenue


77,816




75,139




226,864




201,248


Cost of revenue:
















Cost of revenue—operating leases and incentives


42,135




34,731




122,188




103,564


Cost of revenue—solar energy system and product sales


17,700




22,168




62,735




63,664


Total cost of revenue


59,835




56,899




184,923




167,228


Gross profit


17,981




18,240




41,941




34,020


Operating expenses:
















Sales and marketing


15,841




9,808




40,999




28,037


Research and development


475




896




1,472




2,687


General and administrative


29,803




19,379




71,533




60,259


Amortization of intangible assets


142




139




408




418


Total operating expenses


46,261




30,222




114,412




91,401


Loss from operations


(28,280)




(11,982)




(72,471)




(57,381)


Interest expense, net


18,715




16,148




46,973




47,707


Other (income) expense, net


(1)




195




(6,371)




1,186


Loss before income taxes


(46,994)




(28,325)




(113,073)




(106,274)


Income tax expense


25,698




9,375




79,693




23,932


Net loss


(72,692)




(37,700)




(192,766)




(130,206)


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


(64,824)




(44,605)




(190,038)




(155,383)


Net (loss attributable) income available to common stockholders

$

(7,868)



$

6,905



$

(2,728)



$

25,177


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
















Basic

$

(0.07)



$

0.06



$

(0.02)



$

0.22


Diluted

$

(0.07)



$

0.06



$

(0.02)



$

0.21


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
















Basic


118,767




114,505




116,871




112,554


Diluted


118,767




119,465




116,871




117,825


 


Vivint Solar, Inc.


Condensed Consolidated Unaudited Statements of Cash Flows


(In thousands)



















Three Months Ended



Nine Months Ended



September   30,



September   30,



2018



2017



2018



2017


CASH FLOWS FROM OPERATING ACTIVITIES:
















Net loss

$

(72,692)



$

(37,700)



$

(192,766)



$

(130,206)


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
















Depreciation and amortization


17,665




15,632




50,839




44,671


Amortization of intangible assets


142




139




408




418


Deferred income taxes


25,948




33,238




80,121




98,493


Stock-based compensation


3,103




2,249




9,884




9,501


Loss on solar energy systems and property and equipment


1,414




1,258




4,439




5,024


Non-cash interest and other expense


1,661




2,044




15,317




7,355


Reduction in lease pass-through financing obligation


(1,385)




(1,550)




(3,549)




(3,545)


Losses (gains) on interest rate swaps





200




(1,279)




1,193


Changes in operating assets and liabilities:
















Accounts receivable, net


4,444




(7,844)




(245)




(16,859)


Inventories


(2,645)




(3,661)




6,817




(8,517)


Prepaid expenses and other current assets


655




(5,084)




8,931




16,289


Prepaid tax asset, net





(19,866)







(62,972)


Other non-current assets, net


(1,429)




104




(8,042)




(5,921)


Accounts payable


(957)




1,109




941




994


Accrued compensation


6,719




3,522




4,390




1,500


Deferred revenue


4,073




5,004




(6,441)




11,673


Accrued and other liabilities


9,092




(44)




7,177




6,235


Net cash used in operating activities


(4,192)




(11,250)




(23,058)




(24,674)


CASH FLOWS FROM INVESTING ACTIVITIES:
















Payments for the cost of solar energy systems


(87,301)




(66,192)




(233,548)




(211,225)


Payments for property and equipment


(64)




(39)




(129)




(672)


Proceeds from disposals of solar energy systems and property and equipment


492




852




2,335




1,952


Purchase of intangible assets


(223)







(223)





Proceeds from state tax credits





2,216







2,216


Net cash used in investing activities


(87,096)




(63,163)




(231,565)




(207,729)


CASH FLOWS FROM FINANCING ACTIVITIES:
















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


86,634




46,777




194,921




162,291


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


(13,171)




(11,294)




(41,729)




(33,774)


Proceeds from long-term debt


41,748




33,000




917,748




306,750


Payments on long-term debt


(4,462)




(5,631)




(693,782)




(164,935)


Payments for debt issuance and deferred offering costs


(3,494)




(267)




(21,209)




(13,677)


Proceeds from lease pass-through financing obligation


994




980




2,491




2,467


Principal payments on capital lease obligations


(732)




(1,070)




(2,663)




(3,413)


Proceeds from issuance of common stock


39




370




876




603


Net cash provided by financing activities


107,556




62,865




356,653




256,312


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


16,268




(11,548)




102,030




23,909


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


240,700




158,896




154,938




123,439


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

$

256,968



$

147,348



$

256,968



$

147,348


 

Vivint Solar, Inc.


Key Operating Metrics















Three Months Ended



September   30,



June   30,



September   30,



2018



2018



2017


 Installations


7,547




6,678




7,076


 Megawatts installed


54.3




47.0




46.5















As of



September   30,



June   30,



September   30,



2018



2018



2017


 Cumulative installations


146,868




139,321




120,363


 Cumulative megawatts installed


1,006.6




952.3




820.3


 Estimated nominal contracted payments remaining (in millions)

$

3,444.4



$

3,267.3



$

2,913.2


      Estimated retained value under energy contracts (in millions)

$

1,427.2



$

1,379.8



$

1,175.5


      Estimated retained value of renewal (in millions)

$

451.8



$

424.7



$

359.7


 Estimated gross retained value (in millions)

$

1,879.0



$

1,804.5



$

1,535.2


 Estimated gross retained value per watt

$

2.03



$

2.06



$

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 September 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

$

1,691.3



$

1,427.2



$

1,218.8


 Estimated retained value of renewal


699.1




451.8




295.2


 Total estimated gross retained value

$

2,390.4



$

1,879.0



$

1,514.0


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

We report GAAP EPS, which is based upon net (loss attributable) 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 ($0.61) and ($1.65) for the three and nine months ended September 30, 2018.

Vivint Solar, Inc.


Reconciliation from GAAP EPS to Non-GAAP EPS


(In thousands, except per share data)



















Three Months Ended



September   30, 2018



September   30, 2017



Net Loss



EPS



Net Loss



EPS


Net (loss attributable) income available to common stockholders

$

(7,868)



$

(0.07)



$

6,905



$

0.06


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


(64,824)




(0.54)




(44,605)




(0.39)


Non-GAAP net loss

$

(72,692)



$

(0.61)



$

(37,700)



$

(0.33)


Weighted-average shares used in computing net loss per share






118,767








114,505









Nine Months Ended



September   30, 2018



September   30, 2017



Net Loss



EPS



Net Loss



EPS


Net (loss attributable) income available to common stockholders

$

(2,728)



$

(0.02)



$

25,177



$

0.22


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


(190,038)



$

(1.63)




(155,383)



$

(1.38)


Non-GAAP net loss

$

(192,766)



$

(1.65)



$

(130,206)



$

(1.16)


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






116,871








112,554


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.

"GrossRetained 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, debt associated with forward flow facilities, 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.

"Gross 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 to download multimedia:http://www.prnewswire.com/news-releases/vivint-solar-reports-third-quarter-2018-results-300744967.html

SOURCE Vivint Solar

Stock Price

NYSE: VSLR 5.76 +3.6% Change: +0.20 Volume: 348,651 View details November 16, 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

Government Affairs

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