Cumulative Deployments Exceeded 1 GW
Sunrun (Nasdaq:RUN), the nation’s largest dedicated provider of
residential solar, storage and energy services, today announced
financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Operating Highlights
- Total deployments of 76 MW, an increase of 16%
year-over-year
- Net Present Value of $74 million created, an increase of 56%
year-over-year
- Creation Cost per watt improved by 10% year-over-year
- Cumulative MW deployed of 1,027 MW, an increase of 42%
year-over-year
- Net Earning Assets exceeded $1 billion, reflecting a 29%
increase year-over-year
“We are pleased to deliver Q2 results that exceeded our guidance
and are proud that our customers have now saved $150 million and
represent over 1 GW of clean power resources,” said Lynn Jurich,
Sunrun’s chief executive officer. “We continue to innovate
and expand, having launched in seven new markets this year while
also exploring more ways distributed energy resources can deliver
value to consumers and modernize our energy infrastructure.”
Key Operating Metrics
In the second quarter of 2017, MW deployed increased to 76 MW
from 65 MW in the second quarter of 2016, a 16% year-over-year
increase.
In the second quarter of 2017, MW booked were 88 MW, an increase
of 28% from the second quarter of 2016.
Creation Cost per watt was $3.37 in the second quarter of 2017
compared to $3.75 in the second quarter of 2016, an improvement of
10% year-over-year. NPV per watt in the second quarter of 2017 was
$1.10 compared to $0.86 in the second quarter of 2016.
NPV created in the second quarter of 2017 was $74 million,
a 56% increase from $47 million in the second quarter of
2016. Project Value per watt was $4.47, compared to $4.61 in the
second quarter of 2016.
Gross Earning Assets as of June 30, 2017 were $1.9 billion. Net
Earning Assets as of June 30, 2017 were $1.1 billion, up $246
million, or 29% from the prior year.
Financing
Activities
As of August 7, 2017, our project finance pipeline remains
robust, with closed transactions and executed terms sheets that
provide us expected tax equity runway into Q2 of 2018 and
back-leverage capacity into Q4 of 2017.
Second Quarter 2017 GAAP Results
Operating leases and incentives revenue grew 44% year-over-year
to $65.3 million. Solar energy systems and product sales declined
6% year-over-year to $72.5 million. Total revenue grew to $137.8
million in the second quarter of 2017, up $15.3 million, or 12%
year-over-year.
Total cost of revenue was $108.1 million, an increase of 8%
year-over-year. Total operating expenses were $170.8 million, a
decline of 0.1% year-over-year.
Net income available to common stockholders was $25.1 million in
the second quarter of 2017, compared to net income available to
common stockholders of $12.7 million in the first quarter of
2017.
Diluted net earnings per share available to common shareholders
was $0.23 per share.
Guidance for Q3 and Full Year 2017
The following statements are based on current expectations.
These statements are forward-looking and actual results may differ
materially.
In Q3, we expect to deploy approximately 88 MW, reflecting 15%
growth for the first three quarters of 2017 compared to the prior
year.
For the full year 2017, we continue to expect to deploy 325 MWs,
reflecting 15% year-over-year growth.
Conference Call Information
Sunrun is hosting a conference call for analysts and investors
to discuss its second quarter 2017 results and outlook for its
third quarter 2017 at 2:00 p.m. Pacific Time today, August 7, 2017.
A live audio webcast of the conference call along with supplemental
financial information will be accessible via the “Investor
Relations” section of the Company’s website at
http://investors.sunrun.com. The conference call can also be
accessed live over the phone by dialing (877) 470-1078 (domestic)
or (615) 247-0087 (international) using ID #56202038. A replay will
be available following the call via the Sunrun Investor Relations
website or for one week at the following numbers (855) 859-2056
(domestic) or (404) 537-3406 (international) using ID
#56202038.
About
Sunrun
Sunrun (Nasdaq:RUN) is the nation’s largest dedicated
residential solar, storage and energy services company with a
mission to create a planet run by the sun. Since establishing the
solar as a service model in 2007, Sunrun leads the industry in
providing clean energy to homeowners with little to no upfront cost
and at a savings to traditional electricity. The company designs,
installs, finances, insures, monitors and maintains the systems,
while families receive predictable pricing for 20 years or more.
The company also offers Sunrun BrightBoxTM solar power generation
with smart inverter technology and home battery storage. For more
information, please visit: www.sunrun.com.
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 our future financial and operating guidance,
operational and financial results such as growth, value creation,
MW bookings and deployments, gross and net earning assets, project
value, estimated creation costs and NPV, and the assumptions
related to the calculation of the foregoing metrics, as well as our
expectations regarding our growth and financing capacity. The risks
and uncertainties that could cause our results to differ materially
from those expressed or implied by such forward-looking statements
include, but are not limited to: the availability of additional
financing on acceptable terms; changes in the retail prices of
traditional utility generated electricity; changes in policies and
regulations including net metering and interconnection limits or
caps; the availability of rebates, tax credits and other
incentives; the availability of solar panels and other raw
materials; our limited operating history, particularly as a new
public company; our ability to attract and retain our relationships
with third parties, including our solar partners; our ability to
meet the covenants in our investment funds and debt facilities; and
such other risks identified in the reports that we file with the
U.S. Securities and Exchange Commission, or SEC, from time to time.
All forward-looking statements in this press release are based on
information available to us as of the date hereof, and we assume no
obligation to update these forward-looking statements.
Consolidated Balance Sheets(In
Thousands) |
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash |
|
$ |
211,321 |
|
|
$ |
206,364 |
|
Restricted cash |
|
15,672 |
|
|
11,882 |
|
Accounts
receivable, net |
|
64,030 |
|
|
60,258 |
|
State tax
credits receivable |
|
— |
|
|
13,713 |
|
Inventories |
|
52,744 |
|
|
67,326 |
|
Prepaid
expenses and other current assets |
|
12,575 |
|
|
9,802 |
|
Total current assets |
|
356,342 |
|
|
369,345 |
|
Restricted cash |
|
5,952 |
|
|
6,117 |
|
Solar
energy systems, net |
|
2,951,260 |
|
|
2,629,366 |
|
Property
and equipment, net |
|
41,774 |
|
|
48,471 |
|
Intangible assets, net |
|
16,397 |
|
|
18,499 |
|
Goodwill |
|
87,543 |
|
|
87,543 |
|
Prepaid
tax asset |
|
— |
|
|
378,541 |
|
Other
assets |
|
29,834 |
|
|
34,936 |
|
Total assets |
|
$ |
3,489,102 |
|
|
$ |
3,572,818 |
|
Liabilities and
total equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
75,336 |
|
|
$ |
66,018 |
|
Distributions payable to noncontrolling interests and redeemable
noncontrolling interests |
|
13,212 |
|
|
10,654 |
|
Accrued
expenses and other liabilities |
|
52,961 |
|
|
59,261 |
|
Deferred
revenue, current portion |
|
70,601 |
|
|
70,849 |
|
Deferred
grants, current portion |
|
8,363 |
|
|
8,011 |
|
Capital
lease obligations, current portion |
|
8,525 |
|
|
10,015 |
|
Recourse
debt, current portion |
|
247,000 |
|
|
— |
|
Long-term
non-recourse debt, current portion |
|
18,883 |
|
|
14,153 |
|
Lease
pass-through financing obligation, current portion |
|
5,869 |
|
|
5,823 |
|
Total current liabilities |
|
500,750 |
|
|
244,784 |
|
Deferred
revenue, net of current portion |
|
578,484 |
|
|
583,401 |
|
Deferred
grants, net of current portion |
|
222,184 |
|
|
226,893 |
|
Capital
lease obligations, net of current portion |
|
8,745 |
|
|
12,965 |
|
Recourse
debt, net of current portion |
|
— |
|
|
244,000 |
|
Long-term
non-recourse debt, net of current portion |
|
761,349 |
|
|
639,870 |
|
Lease
pass-through financing obligation, net of current portion |
|
139,249 |
|
|
137,958 |
|
Other
liabilities |
|
10,682 |
|
|
5,457 |
|
Deferred
tax liabilities |
|
54,376 |
|
|
415,397 |
|
Total liabilities |
|
2,275,819 |
|
|
2,510,725 |
|
Redeemable
noncontrolling interests |
|
163,077 |
|
|
137,907 |
|
Total stockholders’ equity |
|
721,227 |
|
|
672,961 |
|
Noncontrolling interests |
|
328,979 |
|
|
251,225 |
|
Total equity |
|
1,050,206 |
|
|
924,186 |
|
Total liabilities, redeemable noncontrolling interests and
total equity |
|
$ |
3,489,102 |
|
|
$ |
3,572,818 |
|
Consolidated Statements of
Operations(In Thousands, Except Per Share Amounts) |
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
Operating
leases and incentives |
|
$ |
65,337 |
|
|
$ |
45,394 |
|
|
$ |
113,435 |
|
|
$ |
79,934 |
|
Solar
energy systems and product sales |
|
72,511 |
|
|
77,144 |
|
|
128,530 |
|
|
141,347 |
|
Total
revenue |
|
137,848 |
|
|
122,538 |
|
|
241,965 |
|
|
221,281 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Cost of
operating leases and incentives |
|
47,114 |
|
|
38,608 |
|
|
91,450 |
|
|
76,708 |
|
Cost of
solar energy systems and product sales |
|
60,938 |
|
|
61,600 |
|
|
110,369 |
|
|
119,112 |
|
Sales and
marketing |
|
32,784 |
|
|
43,716 |
|
|
64,460 |
|
|
86,904 |
|
Research
and development |
|
3,710 |
|
|
2,373 |
|
|
6,706 |
|
|
4,836 |
|
General
and administrative |
|
25,230 |
|
|
23,614 |
|
|
49,851 |
|
|
46,862 |
|
Amortization of intangible assets |
|
1,051 |
|
|
1,051 |
|
|
2,102 |
|
|
2,103 |
|
Total
operating expenses |
|
170,827 |
|
|
170,962 |
|
|
324,938 |
|
|
336,525 |
|
Loss from
operations |
|
(32,979 |
) |
|
(48,424 |
) |
|
(82,973 |
) |
|
(115,244 |
) |
Interest expense,
net |
|
16,602 |
|
|
13,063 |
|
|
31,879 |
|
|
24,578 |
|
Other expenses
(income), net |
|
208 |
|
|
30 |
|
|
683 |
|
|
(502 |
) |
Loss before income
taxes |
|
(49,789 |
) |
|
(61,517 |
) |
|
(115,535 |
) |
|
(139,320 |
) |
Income tax expense |
|
15,453 |
|
|
3,210 |
|
|
22,791 |
|
|
3,210 |
|
Net loss |
|
(65,242 |
) |
|
(64,727 |
) |
|
(138,326 |
) |
|
(142,530 |
) |
Net loss attributable
to noncontrolling interests and redeemable noncontrolling
interests |
|
(90,364 |
) |
|
(97,370 |
) |
|
(176,175 |
) |
|
(188,307 |
) |
Net income available to
common stockholders |
|
$ |
25,122 |
|
|
$ |
32,643 |
|
|
$ |
37,849 |
|
|
$ |
45,777 |
|
Net income per share
available to common stockholders |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.24 |
|
|
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.45 |
|
Diluted |
|
$ |
0.23 |
|
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.44 |
|
Weighted average shares
used to compute net income per share available to common
stockholders |
|
|
|
|
|
|
|
|
Basic |
|
105,093 |
|
|
101,969 |
|
|
104,568 |
|
|
101,621 |
|
Diluted |
|
107,347 |
|
|
104,768 |
|
|
106,911 |
|
|
104,494 |
|
Consolidated Statements of Cash
Flows(In Thousands) |
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(65,242 |
) |
|
$ |
(64,727 |
) |
|
$ |
(138,326 |
) |
|
$ |
(142,530 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization, net of amortization of deferred
grants |
|
33,572 |
|
|
24,968 |
|
|
65,282 |
|
|
46,564 |
|
Deferred
income taxes |
|
15,451 |
|
|
3,210 |
|
|
22,788 |
|
|
3,210 |
|
Stock-based compensation expense |
|
5,515 |
|
|
4,838 |
|
|
11,389 |
|
|
8,647 |
|
Noncash
interest expense |
|
3,550 |
|
|
1,833 |
|
|
9,481 |
|
|
5,335 |
|
Interest
on lease pass-through financing obligations |
|
2,988 |
|
|
3,017 |
|
|
5,949 |
|
|
6,019 |
|
Reduction
in lease pass-through financing obligations |
|
(4,616 |
) |
|
(5,255 |
) |
|
(9,162 |
) |
|
(9,491 |
) |
Other
noncash losses and expenses |
|
1,692 |
|
|
1,267 |
|
|
4,590 |
|
|
2,924 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
(10,577 |
) |
|
289 |
|
|
(4,215 |
) |
|
3,884 |
|
Inventories |
|
6,859 |
|
|
6,475 |
|
|
14,582 |
|
|
(16,839 |
) |
Prepaid
and other assets |
|
(1,413 |
) |
|
1,595 |
|
|
(2,854 |
) |
|
(2,760 |
) |
Accounts
payable |
|
6,993 |
|
|
214 |
|
|
2,636 |
|
|
(9,889 |
) |
Accrued
expenses and other liabilities |
|
4,162 |
|
|
3,535 |
|
|
(11,283 |
) |
|
3,218 |
|
Deferred
revenue |
|
(3,284 |
) |
|
(2,277 |
) |
|
(4,314 |
) |
|
3,295 |
|
Net cash
used in operating activities |
|
(4,350 |
) |
|
(21,018 |
) |
|
(33,457 |
) |
|
(98,413 |
) |
Investing
activities: |
|
|
|
|
|
|
|
|
Payments
for the costs of solar energy systems, leased and to be leased |
|
(188,577 |
) |
|
(167,843 |
) |
|
(356,726 |
) |
|
(332,472 |
) |
Purchases
of property and equipment |
|
(1,854 |
) |
|
(3,185 |
) |
|
(4,464 |
) |
|
(8,208 |
) |
Business
acquisition, net of cash acquired |
|
— |
|
|
(5,000 |
) |
|
— |
|
|
(5,000 |
) |
Net cash
used in investing activities |
|
(190,431 |
) |
|
(176,028 |
) |
|
(361,190 |
) |
|
(345,680 |
) |
Financing
activities: |
|
|
|
|
|
|
|
|
Proceeds
from state tax credits, net of recapture |
|
(217 |
) |
|
(79 |
) |
|
13,171 |
|
|
9,123 |
|
Proceeds
from issuance of recourse debt |
|
34,000 |
|
|
116,400 |
|
|
91,400 |
|
|
257,400 |
|
Repayment
of recourse debt |
|
(34,400 |
) |
|
(65,000 |
) |
|
(88,400 |
) |
|
(212,000 |
) |
Proceeds
from issuance of non-recourse debt |
|
161,300 |
|
|
83,346 |
|
|
199,525 |
|
|
189,746 |
|
Repayment
of non-recourse debt |
|
(79,926 |
) |
|
(14,383 |
) |
|
(84,830 |
) |
|
(16,543 |
) |
Payment
of debt fees |
|
(4,955 |
) |
|
(2,908 |
) |
|
(4,955 |
) |
|
(12,277 |
) |
Proceeds
from lease pass-through financing obligations |
|
1,614 |
|
|
3,059 |
|
|
3,062 |
|
|
12,805 |
|
Contributions received from noncontrolling interests and redeemable
noncontrolling interests |
|
140,980 |
|
|
84,677 |
|
|
303,545 |
|
|
239,621 |
|
Distributions paid to noncontrolling interests and redeemable
noncontrolling interests |
|
(11,748 |
) |
|
(8,271 |
) |
|
(24,635 |
) |
|
(18,257 |
) |
(Payments) proceeds from exercises of stock options, net of
withholding taxes on restricted stock units and issuance of shares
in connection with the Employee Stock Purchase Plan |
|
642 |
|
|
3,164 |
|
|
(425 |
) |
|
3,616 |
|
Offering
costs paid related to initial public offering |
|
— |
|
|
— |
|
|
— |
|
|
(437 |
) |
Payment
of capital lease obligations |
|
(2,513 |
) |
|
(3,301 |
) |
|
(5,262 |
) |
|
(6,416 |
) |
Change in
restricted cash |
|
(2,466 |
) |
|
(751 |
) |
|
(2,592 |
) |
|
1,068 |
|
Net cash
provided by financing activities |
|
202,311 |
|
|
195,953 |
|
|
399,604 |
|
|
447,449 |
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
7,530 |
|
|
(1,093 |
) |
|
4,957 |
|
|
3,356 |
|
Cash, beginning of
period |
|
203,791 |
|
|
208,313 |
|
|
206,364 |
|
|
203,864 |
|
Cash, end of
period |
|
$ |
211,321 |
|
|
$ |
207,220 |
|
|
$ |
211,321 |
|
|
$ |
207,220 |
|
Key Operating Metrics and Financial
Metrics |
|
|
Three Months Ended June 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
MW Booked (during the
period)(1) |
|
|
88 |
|
|
|
69 |
|
|
MW Deployed (during the
period) |
|
|
76 |
|
|
|
65 |
|
|
Cumulative MW Deployed
(end of period) |
|
|
1,027 |
|
|
|
721 |
|
|
Gross Earning Assets
under Energy Contract (end of period)(in millions)(2) |
|
$ |
1,229 |
|
|
$ |
992 |
|
|
Gross Earning Assets
Value of Purchase or Renewal (end of period)(in millions) |
|
$ |
665 |
|
|
$ |
507 |
|
|
Gross Earning Assets
(end of period)(in millions) |
|
$ |
1,894 |
|
|
$ |
1,499 |
|
|
Net Earning
Assets (end of period)(in millions)(2) |
|
$ |
1,089 |
|
|
$ |
843 |
|
|
|
Three Months Ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
Project Value,
Contracted Portion (per watt) |
|
$ |
3.89 |
|
|
$ |
4.03 |
|
Project Value, Renewal
Portion (per watt) |
|
$ |
0.58 |
|
|
$ |
0.58 |
|
Total Project Value
(per watt) |
|
$ |
4.47 |
|
|
$ |
4.61 |
|
Creation Cost (per
watt)(3) |
|
$ |
3.37 |
|
|
$ |
3.75 |
|
Unlevered NPV (per
watt)(2) |
|
$ |
1.10 |
|
|
$ |
0.86 |
|
NPV (in
millions)(2) |
|
$ |
74 |
|
|
$ |
47 |
|
(1) |
|
The
presentation of MW Booked for periods prior to December 31, 2016
reflects changes made to the calculation methodology as further
described in our Annual Report on Form 10-K filed with the SEC on
March 8, 2017.
|
(2) |
|
Numbers may
not sum due to rounding. |
(3) |
|
The
presentation of Creation Cost for periods prior to December 31,
2016 reflects changes made to the calculation methodology as
further described in our Fourth Quarter 2016 earnings presentation
available on our investor relations website. |
Definitions
Creation Cost includes (i) certain installation
and general and administrative costs after subtracting the gross
margin on solar energy systems and product sales divided by watts
deployed during the measurement period and (ii) certain sales and
marketing expenses under new Customer Agreements, net of
cancellations during the period divided by the related watts
deployed.
Customers refers to all residential homeowners
(i) who have executed a Customer Agreement or cash sales agreement
with us and (ii) for whom we have internal confirmation that the
applicable solar energy system has reached notice to proceed or
“NTP”, net of cancellations.
Customer Agreements refers to, collectively,
solar power purchase agreements and solar leases.
Gross Earning Assets represents the net cash
flows (discounted at 6%) we expect to receive during the initial
20-year term of our Customer Agreements for systems that have been
deployed as of the measurement date, plus a discounted estimate of
the value of the Customer Agreement renewal term or solar energy
system purchase at the end of the initial term. Gross Earning
Assets excludes estimated cash distributions to investors in
consolidated joint ventures and estimated operating, maintenance
and administrative expenses for systems deployed as of the
measurement date. In calculating Gross Earning Assets, we deduct
estimated cash distributions to our cash equity financing
providers. In calculating Gross Earning Assets, we do not deduct
customer payments we are obligated to pass through to investors in
lease pass-throughs as these amounts are reflected on our balance
sheet as long-term and short-term lease pass-through obligations,
similar to the way that debt obligations are presented. In
determining our finance strategy, we use lease pass-throughs and
long-term debt in an equivalent fashion as the schedule of payments
of distributions to lease pass-through investors is more similar to
the payment of interest to lenders than the internal rates of
return (IRRs) paid to investors in other tax equity structures.
Gross Earning Assets Under Energy
Contract represents the net cash flows during the initial
(typically 20 year) term of our Customer Agreements (less
substantially all value from SRECs prior to July 1, 2015), for
systems deployed as of the measurement date.
Gross Earning Assets Value
of Purchase or
Renewal is the forecasted net present value we
would receive upon or following the expiration of the initial
Customer Agreement term (either in the form of cash payments during
any applicable renewal period or a system purchase at the end of
the initial term), for systems deployed as of the measurement
date.
MW Booked represents the aggregate megawatt
production capacity of our solar energy systems, whether sold
directly to customers or subject to an executed Customer Agreement,
for which we have confirmation that the systems have reached NTP,
net of cancellations.
MW Deployed represents the aggregate megawatt
production capacity of our solar energy systems, whether sold
directly to customers or subject to executed Customer Agreements,
for which we have (i) confirmation that the systems are installed
on the roof, subject to final inspection or (ii) in the case of
certain system installations by our partners, accrued at least 80%
of the expected project cost.
Net Earning Assets represents Gross Earning
Assets less both project level debt and Lease Pass-Through
Financing Obligation, as of the same measurement date. Because
estimated cash distributions to our cash equity financing partners
are deducted from Gross Earning Assets, a proportional share of the
corresponding project level debt is deducted from Net Earning
Assets.
NPV equals Unlevered NPV multiplied by leased
megawatts deployed in period.
NTP or Notice to Proceed refers to our internal
confirmation that a solar energy system has met our installation
requirements for size, equipment and design.
Project Value represents the value of upfront
and future payments by customers, the benefits received from
utility and state incentives, as well as the present value of net
proceeds derived through investment funds. Specifically, Project
Value is calculated as the sum of the following items (all measured
on a per-watt basis with respect to megawatts deployed under
Customer Agreements during the period): (i) estimated Gross Earning
Assets, (ii) utility or upfront state incentives,
(iii) upfront payments from customers for deposits and partial
or full prepayments of amounts otherwise due under Customer
Agreements and which are not already included in Gross Earning
Assets and (iv) finance proceeds from tax equity investors,
excluding cash true-up payments or the value of asset contributions
in lieu of cash true-up payments made to investors. Project Value
includes contracted SRECs for all periods after July 1, 2015.
Unlevered NPV equals the difference between
Project Value and estimated Creation Cost on a per watt basis.
Investor Relations Contact:
Patrick Jobin
Vice President, Finance & Investor Relations
Investors@sunrun.com
(415) 638-4007
Sunrun (NASDAQ:RUN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sunrun (NASDAQ:RUN)
Historical Stock Chart
From Apr 2023 to Apr 2024