LEHI, Utah, May 8, 2018 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), today announced financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Operating Highlights

Key operating and development highlights include:

  • MW Booked of approximately 52 MWs for the quarter.
  • MW Installed of approximately 40 MWs for the quarter. Total cumulative MWs installed were approximately 905 MWs.
  • Installations were 5,813 for the quarter. Cumulative installations were 132,643.
  • Estimated Retained Value increased by approximately $77 million during the quarter to approximately $1.7 billion. Estimated Retained Value per Watt at quarter end was $2.02.
  • Cost per Watt was $3.15, an increase from $2.95 in the fourth quarter of 2017 and an increase from $2.98 in the first quarter of 2017.

Financing Activity

As of March 31, 2018, the company had $200 million in undrawn capacity in the aggregation facility and approximately 29 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 $101 million commitment that will fund the installation of approximately 64 MWs with a new tax equity investor.

Summary First Quarter 2018 Financial Results

$ amounts in millions, except per share data













Three Months Ended March 31,



2018



2017



YoY


Revenue:












     Operating leases and incentives

$

31.1



$

30.4



up 2%


     Solar energy system and product sales


37.1




22.7



up 63%


Total Revenue


68.3




53.1



up 28%


Cost of revenue:












     Operating leases and incentives


38.7




35.1



up 10%


     Solar energy system and product sales


26.0




18.7



up 40%


Total cost of revenue


64.7




53.7



up 20%


Gross profit (loss)


3.5




(0.6)



up 667%


Loss from Operations


(28.1)




(31.1)



up 10%


Net (loss) income

$

(13.0)



$

13.3



down 198%


Net (loss) income per diluted share

$

(0.11)



$

0.11



down 200%


Non-GAAP net loss per share

$

(0.53)



$

(0.50)



down 6%













Note: Totals may not sum due to rounding.

Guidance for the Second 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 second quarter of 2018, Vivint Solar expects:

  • MW Installed: 45 to 48 MWs
  • Cost per Watt: $3.05 - $3.13

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Tuesday, May 8, 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 233 7889. 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 May 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)











March 31,



December 31,



2018



2017


ASSETS








Current assets:








Cash and cash equivalents

$

78,466



$

108,452


Accounts receivable, net


18,236




19,665


Inventories


15,790




22,597


Prepaid expenses and other current assets


22,234




34,049


Total current assets


134,726




184,763


Restricted cash and cash equivalents


47,773




46,486


Solar energy systems, net


1,727,479




1,673,532


Property and equipment, net


13,315




15,078


Intangible assets, net


725




862


Prepaid tax asset, net


—




505,883


Other non-current assets, net


41,763




37,325


TOTAL ASSETS

$

1,965,781



$

2,463,929


LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY








Current liabilities:








Accounts payable

$

40,751



$

40,736


Accounts payable—related party


529




163


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


7,501




16,437


Accrued compensation


19,890




20,992


Current portion of long-term debt


13,566




13,585


Current portion of deferred revenue


24,255




41,846


Current portion of capital lease obligation


3,439




4,166


Accrued and other current liabilities


25,989




29,675


Total current liabilities


135,920




167,600


Long-term debt, net of current portion


959,187




925,964


Deferred revenue, net of current portion


11,311




29,200


Capital lease obligation, net of current portion


1,226




1,599


Deferred tax liability, net


356,984




342,382


Other non-current liabilities


12,623




13,674


Total liabilities


1,477,251




1,480,419


Commitments and contingencies








Redeemable non-controlling interests


130,107




122,444


Stockholders' equity:








Common stock


1,153




1,151


Additional paid-in capital


562,962




559,788


Accumulated other comprehensive income


13,694




6,905


(Accumulated deficit) retained earnings


(277,015)




213,107


Total stockholders' equity


300,794




780,951


Non-controlling interests


57,629




80,115


Total equity


358,423




861,066


TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

1,965,781



$

2,463,929


 

Vivint Solar, Inc.


Condensed Consolidated Unaudited Statements of Operations


(In thousands, except per share data)











Three Months Ended



March 31,



2018



2017


Revenue:








Operating leases and incentives

$

31,114



$

30,389


Solar energy system and product sales


37,136




22,725


Total revenue


68,250




53,114


Cost of revenue:








Cost of revenue—operating leases and incentives


38,687




35,070


Cost of revenue—solar energy system and product sales


26,045




18,665


Total cost of revenue


64,732




53,735


Gross profit (loss)


3,518




(621)


Operating expenses:








Sales and marketing


11,125




8,818


Research and development


486




896


General and administrative


19,851




20,579


Amortization of intangible assets


136




140


Total operating expenses


31,598




30,433


Loss from operations


(28,080)




(31,054)


Interest expense


16,922




14,721


Other (income) expense, net


(2,261)




276


Loss before income taxes


(42,741)




(46,051)


Income tax expense


18,643




9,401


Net loss


(61,384)




(55,452)


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


(48,408)




(68,744)


Net (loss attributable) income available to common stockholders

$

(12,976)



$

13,292


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








Basic

$

(0.11)



$

0.12


Diluted

$

(0.11)



$

0.11


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








Basic


115,155




110,765


Diluted


115,155




116,398


 

Vivint Solar, Inc.


Condensed Consolidated Unaudited Statements of Cash Flows


(In thousands)











Three Months Ended



March 31,



2018



2017


CASH FLOWS FROM OPERATING ACTIVITIES:








Net loss

$

(61,384)



$

(55,452)


Adjustments to reconcile net loss to net cash (used in) provided by operating activities:








Depreciation and amortization


16,307




14,162


Amortization of intangible assets


136




140


Deferred income taxes


18,969




36,125


Stock-based compensation


2,969




3,922


Loss on solar energy systems and property and equipment


570




2,025


Non-cash interest and other expense


2,007




2,126


Reduction in lease pass-through financing obligation


(687)




(649)


(Gains) losses on interest rate swaps


(2,262)




276


Changes in operating assets and liabilities:








Accounts receivable, net


1,429




(4,481)


Inventories


6,807




(2,115)


Prepaid expenses and other current assets


11,746




27,901


Prepaid tax asset, net


—




(24,181)


Other non-current assets, net


385




(3,861)


Accounts payable


374




641


Accrued compensation


(2,351)




(1,763)


Deferred revenue


(9,083)




2,109


Accrued and other liabilities


(103)




6,473


Net cash (used in) provided by operating activities


(14,171)




3,398


CASH FLOWS FROM INVESTING ACTIVITIES:








Payments for the cost of solar energy systems


(72,208)




(75,140)


Payments for property and equipment


(40)




(278)


Proceeds from disposals of solar energy systems and property and equipment


775




171


Net cash used in investing activities


(71,473)




(75,247)


CASH FLOWS FROM FINANCING ACTIVITIES:








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


42,771




58,560


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


(18,122)




(15,027)


Proceeds from long-term debt


40,000




253,750


Payments on long-term debt


(7,748)




(141,159)


Payments for debt issuance and deferred offering costs


—




(10,430)


Proceeds from lease pass-through financing obligation


852




852


Principal payments on capital lease obligations


(1,015)




(1,196)


Proceeds from issuance of common stock


207




147


Net cash provided by financing activities


56,945




145,497


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


(28,699)




73,648


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


154,938




123,439


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

$

126,239



$

197,087


 

Vivint Solar, Inc.


Key Operating Metrics



























Three Months Ended



March 31,



December 31,



March 31,



2018



2017



2017














 Installations


5,813




6,467




6,581


 Megawatts installed


40.4




44.6




45.8


 Cumulative installations


132,643




126,830




106,179


 Cumulative megawatts installed


905.3




864.9




726.9


 Estimated nominal contracted payments remaining (in millions)

$

3,128.2



$

3,021.6



$

2,691.9


      Estimated retained value under energy contracts (in millions)

$

1,295.7



$

1,238.0



$

1,068.3


      Estimated retained value of renewal (in millions)

$

396.6



$

377.1



$

317.4


 Estimated retained value (in millions)

$

1,692.3



$

1,615.1



$

1,385.7


 Estimated retained value per watt

$

2.02



$

2.00



$

1.97


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, 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

$

1,541.0



$

1,295.7



$

1,102.6


 Estimated retained value of renewal


617.0




396.6




257.8


 Total estimated retained value

$

2,158.0



$

1,692.3



$

1,360.4


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 ($0.53) for the three months ended March 31, 2018.

Vivint Solar, Inc.


Reconciliation from GAAP EPS to Non-GAAP EPS


(In thousands, except per share data)



































Three Months Ended



March 31, 2018



March 31, 2017



Net Loss



EPS



Net Loss



EPS


Net (loss attributable) income available to common stockholders

$

(12,976)



$

(0.11)



$

13,292



$

0.12


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


(48,408)




(0.42)




(68,744)




(0.62)


Non-GAAP net loss

$

(61,384)



$

(0.53)



$

(55,452)



$

(0.50)


Weighted-average shares used in computing net loss per share






115,155








110,765


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

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SOURCE Vivint Solar