Press Release Details

Vivint Solar Reports First Quarter 2019 Results

May, 09 2019

LEHI, Utah, May 9, 2019 /PRNewswire/ -- Vivint Solar, Inc. (NYSE: VSLR), today announced financial results for the first quarter ended March 31, 2019.

Vivint Solar (PRNewsfoto/Vivint Solar)

First Quarter 2019 Operating Highlights 

Key operating and development highlights include:

  • MW Installed of approximately 46 MWs for the quarter. Total cumulative MWs installed were approximately 1,107 MWs.
  • Installations were 6,514 for the quarter. Cumulative installations were 161,112.
  • Estimated Gross Retained Value increased by approximately $54 million during the quarter and is approximately $2.1 billion. Estimated Gross Retained Value per Watt at quarter end was $2.04.
  • Cost per Watt was $3.46, an increase from $3.18 in the fourth quarter of 2018 and an increase from $3.22 in the first quarter of 2018.
  • Margin created was $45 million, a 29% increase from the first quarter of 2018. Unlevered NPV per Watt was $0.99.

Financing Activity

As of March 31, 2019, the company had $305 million in undrawn capacity in the aggregation facility, $30 million in undrawn capacity in the forward flow loan facility, and approximately 59 MWs of undeployed tax equity financing capacity.

Summary First Quarter 2019 Financial Results

$ amounts in millions, except per share data











Three Months Ended Mar. 31,


2019



2018



YoY

Revenue:










     Customer agreements and incentives

$

39.6



$

31.1



up 27%

     Solar energy system and product sales


29.8




37.1



down 20%

Total Revenue


69.4




68.3



up 2%

Cost of revenue:










     Customer agreements and incentives


40.2




38.7



up 4%

     Solar energy system and product sales


17.3




26.0



down 34%

Total cost of revenue


57.5




64.7



down 11%

Gross profit


11.9




3.5



up 239%

Loss from Operations


(41.2)




(28.1)



down 47%

Net loss attributable to common stockholders

$

(26.2)



$

(13.0)



down 102%

Net loss per share attributable to common stockholders

$

(0.22)



$

(0.11)



down 100%

Non-GAAP net loss per share

$

(0.74)



$

(0.53)



down 40%


Note: Totals may not sum due to rounding.

Guidance for the Second Quarter 2019

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 2019 financial results.

For the second quarter of 2019, Vivint Solar expects:

  • MW Installed: 52 - 55 MWs
  • Cost per Watt: $3.32 - $3.40

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Thursday, May 9, 2019, at 5:00 p.m. ET to discuss these financial results. To access the conference call, dial 1.833.235.7641 or 1.647.689.4162 for international callers. The conference ID is 977 3839. A listen-only webcast will be accessible on the investor relations page of the company's website at investors.vivintsolar.com/. 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. Vivint Solar designs and installs 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, including power purchase agreements or lease agreements, where available. Vivint Solar also offers solar plus storage systems with LG home batteries. 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, undeployed tax equity financing capacity, 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 our recent and future 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)









March   31,



December   31,


2019



2018

ASSETS







Current assets:







Cash and cash equivalents

$

213,474



$

219,591

Accounts receivable, net


19,992




14,207

Inventories


11,532




13,257

Prepaid expenses and other current assets


29,294




31,201

Total current assets


274,292




278,256

Restricted cash and cash equivalents


75,010




71,305

Solar energy systems, net


1,590,888




1,938,874

Property and equipment, net


10,180




10,730

Other non-current assets, net


478,013




28,090

TOTAL ASSETS

$

2,428,383



$

2,327,255

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY







Current liabilities:







Accounts payable

$

38,937



$

45,929

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


6,591




7,846

Accrued compensation


21,121




25,520

Current portion of long-term debt


147,952




12,155

Current portion of deferred revenue


26,246




30,199

Current portion of finance lease obligation


769




1,921

Accrued and other current liabilities


49,658




42,860

Total current liabilities


291,274




166,430

Long-term debt, net of current portion


1,123,888




1,203,282

Deferred revenue, net of current portion


14,746




13,524

Finance lease obligation, net of current portion


874




505

Deferred tax liability, net


463,156




437,120

Other non-current liabilities


66,369




24,610

Total liabilities


1,960,307




1,845,471

Commitments and contingencies







Redeemable non-controlling interests


118,667




119,572

Stockholders' equity:







Common stock


1,206




1,201

Additional paid-in capital


577,961




574,248

Accumulated other comprehensive loss


(11,870)




(7,223)

Accumulated deficit


(306,028)




(279,631)

Total stockholders' equity


261,269




288,595

Non-controlling interests


88,140




73,617

Total equity


349,409




362,212

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

2,428,383



$

2,327,255

 


Vivint Solar, Inc.

Condensed Consolidated Unaudited Statements of Operations

(In thousands, except per share data)









Three Months Ended


March   31,


2019



2018

Revenue:







Customer agreements and incentives

$

39,603



$

31,114

Solar energy system and product sales


29,768




37,136

Total revenue


69,371




68,250

Cost of revenue:







Cost of revenue—customer agreements and incentives


40,191




38,687

Cost of revenue—solar energy system and product sales


17,263




26,045

Total cost of revenue


57,454




64,732

Gross profit


11,917




3,518

Operating expenses:







Sales and marketing


29,634




11,125

Research and development


469




486

General and administrative


23,049




19,987

Total operating expenses


53,152




31,598

Loss from operations


(41,235)




(28,080)

Interest expense, net


19,127




16,922

Other expense (income), net


1,385




(2,261)

Loss before income taxes


(61,747)




(42,741)

Income tax expense


27,487




18,643

Net loss


(89,234)




(61,384)

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


(62,992)




(48,408)

Net loss attributable to common stockholders

$

(26,242)



$

(12,976)

Net loss per share attributable to common stockholders:







Basic and diluted

$

(0.22)



$

(0.11)

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







Basic and diluted


120,307




115,155

 


Vivint Solar, Inc.

Condensed Consolidated Unaudited Statements of Cash Flows

(In thousands)









Three Months Ended


March   31,


2019



2018

CASH FLOWS FROM OPERATING ACTIVITIES:







Net loss

$

(89,234)



$

(61,384)

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







Depreciation and amortization


17,659




16,443

Deferred income taxes


27,727




18,969

Stock-based compensation


3,679




2,969

Loss on solar energy systems and property and equipment


1,233




570

Non-cash interest and other expense


1,645




2,007

Reduction in lease pass-through financing obligation


(695)




(687)

Losses (gains) on interest rate swaps


1,384




(2,262)

Changes in operating assets and liabilities:







Accounts receivable, net


(5,785)




1,429

Inventories


1,725




6,807

Prepaid expenses and other current assets


2,746




11,746

Other non-current assets, net


(26,539)




385

Accounts payable


1,876




374

Accrued compensation


(4,068)




(2,351)

Deferred revenue


(2,731)




(9,083)

Accrued and other liabilities


(615)




(103)

Net cash used in operating activities


(69,993)




(14,171)

CASH FLOWS FROM INVESTING ACTIVITIES:







Payments for the cost of solar energy systems


(64,526)




(72,208)

Payments for property and equipment


(291)




(40)

Proceeds from disposals of solar energy systems and property and equipment


649




775

Net cash used in investing activities


(64,168)




(71,473)

CASH FLOWS FROM FINANCING ACTIVITIES:







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


84,368




42,771

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


(9,013)




(18,122)

Proceeds from long-term debt


61,355




40,000

Payments on long-term debt


(5,593)




(7,748)

Proceeds from lease pass-through financing obligation


864




852

Principal payments on finance lease obligations


(271)




(1,015)

Proceeds from issuance of common stock


39




207

Net cash provided by financing activities


131,749




56,945

NET DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS


(2,412)




(28,699)

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


290,896




154,938

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

$

288,484



$

126,239

 

Vivint Solar, Inc.

Key Operating Metrics













Three Months Ended


March   31,



December   31,



March   31,


2019



2018



2018

 Installations


6,514




7,730




5,813

 Megawatts installed


45.6




54.3




40.4













As of


March   31,



December   31,



March   31,


2019



2018



2018

 Cumulative installations


161,112




154,598




132,643

 Cumulative megawatts installed


1,106.5




1,060.9




905.3

 Estimated nominal contracted payments remaining (in millions)

$

3,795.8



$

3,638.1



$

3,128.2

      Estimated retained value under energy contracts (in millions)

$

1,549.7



$

1,517.0



$

1,347.9

      Estimated retained value of renewal (in millions)

$

501.0



$

479.7



$

396.6

 Estimated gross retained value (in millions)

$

2,050.7



$

1,996.7



$

1,744.5

 Estimated gross retained value per watt

$

2.04



$

2.06



$

2.08

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 March 31, 2019, 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

$

1,822.0



$

1,549.7



$

1,335.2

 Estimated retained value of renewal


774.4




501.0




329.7

 Total estimated gross retained value

$

2,596.4



$

2,050.7



$

1,664.9

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

We report GAAP EPS, which is based upon net 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 ($0.74) for the three months ended March 31, 2019.

Vivint Solar, Inc.

Reconciliation from GAAP EPS to Non-GAAP EPS

(In thousands, except per share data)
































Three Months Ended


March   31, 2019



March   31, 2018


Net Loss



EPS



Net Loss



EPS

Net loss attributable to common stockholders

$

(26,242)



$

(0.22)



$

(12,976)



$

(0.11)

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


(62,992)




(0.52)




(48,408)




(0.42)

Non-GAAP net loss

$

(89,234)



$

(0.74)



$

(61,384)



$

(0.53)

Weighted-average shares used in computing net loss per share






120,307








115,155

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 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.

"EstimatedNominal 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.

"EstimatedGrossRetained Value" represents the net cash flows, discounted at 6%, that Vivint Solar expects to receive from customers pursuant to long-term customer contracts plus the value of contracted SRECs net of estimated cash distributions to fund investors, debt associated with our 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 plus the value of contracted SRECs, 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.

"EstimatedGrossRetained 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.

"Project Value" represents the net cash flows, discounted at 6% that Vivint Solar expects to receive from customers net of estimated distributions to fund investors and operating expenses, estimated utility and state incentives, and estimated finance proceeds from fund investors.

"NPV / Watt" represents the estimated weighted average unit margin of Vivint Solar's PPA / Lease business and its system sales business. It is calculated by dividing Margin Created during the period by the total MWs Installed during the period.

"Margin Created" represents the estimated margin created during the period. It is the estimated expected value of the PPA / Lease agreements and the value of the system sales less the costs required to create the value. Specifically, it is the sum of the project value per Watt multiplied by MWs Installed – PPA/Lease and Revenue – solar energy system and product sales less total creation costs.

"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

Press Contact:

Helen Langan
Senior Director of Communications
385-202-6577
pr@vivintsolar.com

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/vivint-solar-reports-first-quarter-2019-results-300847497.html

SOURCE Vivint Solar, Inc.

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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