LEHI, Utah, Nov. 7, 2017 /PRNewswire/ -- Vivint Solar (NYSE:
VSLR), today announced financial results for the third quarter
ended September 30, 2017.
Third Quarter 2017 Operating Highlights
Key operating and development highlights for the quarter ended
September 30, 2017 include:
- MW Booked of approximately 53 MWs for the quarter.
- MW Installed of approximately 47 MWs. Total cumulative MWs
installed were approximately 820 MWs.
- Installations were 7,076 for the quarter. Cumulative
installations were 120,363.
- Estimated Nominal Contracted Payments Remaining increased by
approximately $111 million during the
quarter to approximately $2.9
billion.
- Estimated Retained Value increased by approximately
$75 million during the quarter to
approximately $1.5 billion.
- Estimated Retained Value per Watt was $1.98.
- Cost per Watt was $2.94, an
increase from $2.88 in the second
quarter of 2017 and up from $2.85 in
the third quarter of 2016.
Third Quarter 2017 GAAP Financial Results
Summary GAAP financial results for the quarter ended
September 30, 2017 include:
- Operating Leases and Incentives Revenue was $45.9 million, up 37% from $33.4 million in the third quarter of the prior
year. Total revenue for the quarter was $75.1 million, up 82% from $41.3 million in the third quarter of the prior
year.
- Cost of Revenue – Operating Leases and Incentives was
$34.7 million, down from $39.3 million in the same period of 2016.
- Total Operating Expenses, including cost of revenue, were
$87.1 million, compared to
$74.6 million in the third quarter of
2016.
- Loss from Operations was $12.0
million compared to $33.3
million in the same period of 2016.
- GAAP Net Income Available (Loss Attributable) per Share to
Common Stockholders was $0.06, down
from $0.15 in the third quarter of
2016.
- Non-GAAP Net Loss Attributable Before Non-Controlling Interests
and Redeemable Non-Controlling Interests per Share was ($0.33), up from ($0.36) in the same period of 2016. See below for
a further discussion of Non-GAAP Loss per Share.
- Cash and Cash Equivalents as of September 30, 2017 were $101.8 million.
Financing Activity
As of September 30, 2017, the
company had $15 million in undrawn
capacity in the working capital facility, had $275 million in undrawn capacity in the
aggregation facility, and had approximately 76 MWs of installation
capacity remaining in its tax equity funds.
Guidance for Fourth Quarter 2017
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 2017 financial results.
For the fourth quarter of 2017, Vivint Solar expects:
- MW Installed: 46 to 50 MWs
- Cost per Watt: $2.90 - $3.00
Earnings Conference Call
Vivint Solar will host an investor conference call and live
webcast today, Tuesday, November 7,
2017, at 5:00 p.m. ET to
discuss these financial results. To access the conference call,
dial 1.844.579.6824 or 1.763.488.9145 for international callers.
The conference ID is 9870 3603. 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 November 30, 2017.
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. Through
an exclusive collaboration, Vivint Solar also offers solar plus
storage systems with Mercedes-Benz 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, 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, 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 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 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,
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
101,755
|
|
|
$
|
96,586
|
|
Accounts receivable,
net
|
|
29,517
|
|
|
|
12,658
|
|
Inventories
|
|
19,802
|
|
|
|
11,285
|
|
Prepaid expenses and
other current assets
|
|
29,519
|
|
|
|
46,683
|
|
Total current
assets
|
|
180,593
|
|
|
|
167,212
|
|
Restricted cash and
cash equivalents
|
|
45,593
|
|
|
|
26,853
|
|
Solar energy systems,
net
|
|
1,622,561
|
|
|
|
1,458,355
|
|
Property and
equipment, net
|
|
17,040
|
|
|
|
23,199
|
|
Intangible assets,
net
|
|
1,002
|
|
|
|
1,420
|
|
Prepaid tax asset,
net
|
|
482,446
|
|
|
|
419,474
|
|
Other non-current
assets, net
|
|
36,889
|
|
|
|
29,843
|
|
TOTAL
ASSETS
|
$
|
2,386,124
|
|
|
$
|
2,126,356
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
42,315
|
|
|
$
|
46,630
|
|
Accounts
payable—related party
|
|
476
|
|
|
|
191
|
|
Distributions payable
to non-controlling interests and redeemable non-controlling
interests
|
|
11,664
|
|
|
|
16,176
|
|
Accrued
compensation
|
|
23,199
|
|
|
|
20,003
|
|
Current portion of
long-term debt
|
|
13,454
|
|
|
|
6,252
|
|
Current portion of
deferred revenue
|
|
32,283
|
|
|
|
19,911
|
|
Current portion of
capital lease obligation
|
|
4,571
|
|
|
|
5,163
|
|
Accrued and other
current liabilities
|
|
25,044
|
|
|
|
19,364
|
|
Total current
liabilities
|
|
153,006
|
|
|
|
133,690
|
|
Long-term debt, net
of current portion
|
|
882,672
|
|
|
|
750,728
|
|
Deferred revenue, net
of current portion
|
|
33,680
|
|
|
|
34,379
|
|
Capital lease
obligation, net of current portion
|
|
2,294
|
|
|
|
5,476
|
|
Deferred tax
liability, net
|
|
491,834
|
|
|
|
395,218
|
|
Other non-current
liabilities
|
|
13,999
|
|
|
|
10,355
|
|
Total
liabilities
|
|
1,577,485
|
|
|
|
1,329,846
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
127,833
|
|
|
|
129,676
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
1,148
|
|
|
|
1,102
|
|
Additional paid-in
capital
|
|
554,420
|
|
|
|
542,348
|
|
Accumulated other
comprehensive income
|
|
6,027
|
|
|
|
7,631
|
|
Retained
earnings
|
|
29,186
|
|
|
|
5,217
|
|
Total stockholders'
equity
|
|
590,781
|
|
|
|
556,298
|
|
Non-controlling
interests
|
|
90,025
|
|
|
|
110,536
|
|
Total
equity
|
|
680,806
|
|
|
|
666,834
|
|
TOTAL LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
$
|
2,386,124
|
|
|
$
|
2,126,356
|
|
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,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating leases and
incentives
|
$
|
45,909
|
|
|
$
|
33,394
|
|
|
$
|
119,711
|
|
|
$
|
80,033
|
|
Solar energy system
and product sales
|
|
29,230
|
|
|
|
7,868
|
|
|
|
81,537
|
|
|
|
13,363
|
|
Total
revenue
|
|
75,139
|
|
|
|
41,262
|
|
|
|
201,248
|
|
|
|
93,396
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue—operating leases and incentives
|
|
34,731
|
|
|
|
39,268
|
|
|
|
103,564
|
|
|
|
115,566
|
|
Cost of revenue—solar
energy system and product sales
|
|
22,168
|
|
|
|
6,468
|
|
|
|
63,664
|
|
|
|
10,606
|
|
Sales and
marketing
|
|
9,808
|
|
|
|
8,617
|
|
|
|
28,037
|
|
|
|
32,078
|
|
Research and
development
|
|
896
|
|
|
|
842
|
|
|
|
2,687
|
|
|
|
2,218
|
|
General and
administrative
|
|
19,379
|
|
|
|
19,022
|
|
|
|
60,259
|
|
|
|
60,006
|
|
Amortization of
intangible assets
|
|
139
|
|
|
|
342
|
|
|
|
418
|
|
|
|
762
|
|
Impairment of
goodwill
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
36,601
|
|
Total operating
expenses
|
|
87,121
|
|
|
|
74,559
|
|
|
|
258,629
|
|
|
|
257,837
|
|
Loss from
operations
|
|
(11,982)
|
|
|
|
(33,297)
|
|
|
|
(57,381)
|
|
|
|
(164,441)
|
|
Interest
expense
|
|
16,148
|
|
|
|
9,361
|
|
|
|
47,707
|
|
|
|
22,539
|
|
Other expense
(income), net
|
|
195
|
|
|
|
(434)
|
|
|
|
1,186
|
|
|
|
(95)
|
|
Loss before income
taxes
|
|
(28,325)
|
|
|
|
(42,224)
|
|
|
|
(106,274)
|
|
|
|
(186,885)
|
|
Income tax expense
(benefit)
|
|
9,375
|
|
|
|
(2,959)
|
|
|
|
23,932
|
|
|
|
10,245
|
|
Net loss
|
|
(37,700)
|
|
|
|
(39,265)
|
|
|
|
(130,206)
|
|
|
|
(197,130)
|
|
Net loss attributable
to non-controlling interests and redeemable non-controlling interests
|
|
(44,605)
|
|
|
|
(55,961)
|
|
|
|
(155,383)
|
|
|
|
(194,978)
|
|
Net income available
(loss attributable) to common stockholders
|
$
|
6,905
|
|
|
$
|
16,696
|
|
|
$
|
25,177
|
|
|
$
|
(2,152)
|
|
Net income available
(loss attributable) per share to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.06
|
|
|
$
|
0.15
|
|
|
$
|
0.22
|
|
|
$
|
(0.02)
|
|
Diluted
|
$
|
0.06
|
|
|
$
|
0.15
|
|
|
$
|
0.21
|
|
|
$
|
(0.02)
|
|
Weighted-average
shares used in computing net income available (loss attributable) per share to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
114,505
|
|
|
|
108,692
|
|
|
|
112,554
|
|
|
|
107,516
|
|
Diluted
|
|
119,465
|
|
|
|
113,344
|
|
|
|
117,825
|
|
|
|
107,516
|
|
Vivint Solar,
Inc.
|
|
Condensed
Consolidated Unaudited Statements of Cash Flows
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(37,700)
|
|
|
$
|
(39,265)
|
|
|
$
|
(130,206)
|
|
|
$
|
(197,130)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
15,632
|
|
|
|
12,500
|
|
|
|
44,671
|
|
|
|
32,376
|
|
Amortization of
intangible assets
|
|
139
|
|
|
|
342
|
|
|
|
418
|
|
|
|
762
|
|
Impairment of
goodwill
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
36,601
|
|
Deferred income
taxes
|
|
33,238
|
|
|
|
41,075
|
|
|
|
98,493
|
|
|
|
124,912
|
|
Stock-based
compensation
|
|
2,249
|
|
|
|
3,678
|
|
|
|
9,501
|
|
|
|
6,145
|
|
Loss on solar energy
systems and property and equipment
|
|
1,258
|
|
|
|
4,317
|
|
|
|
5,024
|
|
|
|
4,576
|
|
Non-cash interest and
other expense
|
|
2,044
|
|
|
|
1,966
|
|
|
|
7,355
|
|
|
|
4,963
|
|
Reduction in lease
pass-through financing obligation
|
|
(1,550)
|
|
|
|
(1,613)
|
|
|
|
(3,545)
|
|
|
|
(3,279)
|
|
Losses (gains) on
interest rate swaps
|
|
200
|
|
|
|
(258)
|
|
|
|
1,193
|
|
|
|
(258)
|
|
Excess tax detriment
from stock-based compensation
|
|
—
|
|
|
|
(299)
|
|
|
|
—
|
|
|
|
(1,280)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(7,844)
|
|
|
|
(140)
|
|
|
|
(16,859)
|
|
|
|
(8,444)
|
|
Inventories
|
|
(3,661)
|
|
|
|
(2,655)
|
|
|
|
(8,517)
|
|
|
|
(5,891)
|
|
Prepaid expenses and
other current assets
|
|
(5,084)
|
|
|
|
(2,209)
|
|
|
|
16,289
|
|
|
|
98
|
|
Prepaid tax asset,
net
|
|
(19,866)
|
|
|
|
(35,273)
|
|
|
|
(62,972)
|
|
|
|
(122,313)
|
|
Other non-current
assets, net
|
|
104
|
|
|
|
(961)
|
|
|
|
(5,921)
|
|
|
|
(4,255)
|
|
Accounts
payable
|
|
936
|
|
|
|
1,742
|
|
|
|
874
|
|
|
|
664
|
|
Accounts
payable—related party
|
|
173
|
|
|
|
(68)
|
|
|
|
120
|
|
|
|
(1,480)
|
|
Accrued
compensation
|
|
3,522
|
|
|
|
3,696
|
|
|
|
1,500
|
|
|
|
8,334
|
|
Deferred
revenue
|
|
5,004
|
|
|
|
2,222
|
|
|
|
11,673
|
|
|
|
3,396
|
|
Accrued and other
liabilities
|
|
(44)
|
|
|
|
(3,955)
|
|
|
|
6,235
|
|
|
|
(2,377)
|
|
Net cash used in
operating activities
|
|
(11,250)
|
|
|
|
(15,158)
|
|
|
|
(24,674)
|
|
|
|
(123,880)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for the cost
of solar energy systems
|
|
(66,192)
|
|
|
|
(106,651)
|
|
|
|
(211,225)
|
|
|
|
(318,273)
|
|
Payments for property
and equipment
|
|
(39)
|
|
|
|
(809)
|
|
|
|
(672)
|
|
|
|
(2,697)
|
|
Proceeds from
disposals of solar energy systems and property and equipment
|
|
852
|
|
|
|
319
|
|
|
|
1,952
|
|
|
|
693
|
|
Change in restricted
cash and cash equivalents
|
|
(2,309)
|
|
|
|
(3,917)
|
|
|
|
(18,740)
|
|
|
|
(8,434)
|
|
Proceeds from state
tax credits
|
|
2,216
|
|
|
|
—
|
|
|
|
2,216
|
|
|
|
—
|
|
Purchase of intangible
assets
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(291)
|
|
Net cash used in
investing activities
|
|
(65,472)
|
|
|
|
(111,058)
|
|
|
|
(226,469)
|
|
|
|
(329,002)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
investment by non-controlling interests and redeemable non-controlling interests
|
|
46,777
|
|
|
|
53,885
|
|
|
|
162,291
|
|
|
|
237,148
|
|
Distributions paid to
non-controlling interests and redeemable non-controlling interests
|
|
(11,294)
|
|
|
|
(10,417)
|
|
|
|
(33,774)
|
|
|
|
(22,230)
|
|
Proceeds from
long-term debt
|
|
33,000
|
|
|
|
355,551
|
|
|
|
306,750
|
|
|
|
500,257
|
|
Payments on long-term
debt
|
|
(5,631)
|
|
|
|
(220,250)
|
|
|
|
(164,935)
|
|
|
|
(224,400)
|
|
Payments for debt
issuance and deferred offering costs
|
|
(267)
|
|
|
|
(10,544)
|
|
|
|
(13,677)
|
|
|
|
(16,774)
|
|
Proceeds from lease
pass-through financing obligation
|
|
980
|
|
|
|
557
|
|
|
|
2,467
|
|
|
|
1,417
|
|
Principal payments on
capital lease obligations
|
|
(1,070)
|
|
|
|
(1,298)
|
|
|
|
(3,413)
|
|
|
|
(4,357)
|
|
Proceeds from issuance
of common stock
|
|
370
|
|
|
|
2,155
|
|
|
|
603
|
|
|
|
2,645
|
|
Net cash provided by
financing activities
|
|
62,865
|
|
|
|
169,639
|
|
|
|
256,312
|
|
|
|
473,706
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(13,857)
|
|
|
|
43,423
|
|
|
|
5,169
|
|
|
|
20,824
|
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
|
115,612
|
|
|
|
69,614
|
|
|
|
96,586
|
|
|
|
92,213
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
|
101,755
|
|
|
$
|
113,037
|
|
|
$
|
101,755
|
|
|
$
|
113,037
|
|
Vivint Solar,
Inc.
|
|
Key Operating
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installations
|
|
7,076
|
|
|
|
7,108
|
|
|
|
8,266
|
|
Megawatts
installed
|
|
46.5
|
|
|
|
46.9
|
|
|
|
58.8
|
|
Cumulative
installations
|
|
120,363
|
|
|
|
113,287
|
|
|
|
93,138
|
|
Cumulative
megawatts installed
|
|
820.3
|
|
|
|
773.8
|
|
|
|
634.0
|
|
Estimated
nominal contracted payments remaining (in millions)
|
$
|
2,913.2
|
|
|
$
|
2,802.4
|
|
|
$
|
2,432.2
|
|
Estimated retained
value under energy contracts (in millions)
|
$
|
1,175.5
|
|
|
$
|
1,121.6
|
|
|
$
|
948.3
|
|
Estimated retained
value of renewal (in millions)
|
$
|
359.7
|
|
|
$
|
339.0
|
|
|
$
|
280.0
|
|
Estimated
retained value (in millions)
|
$
|
1,535.2
|
|
|
$
|
1,460.6
|
|
|
$
|
1,228.3
|
|
Estimated
retained value per watt
|
$
|
1.98
|
|
|
$
|
1.98
|
|
|
$
|
1.96
|
|
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, 2017,
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
|
$
|
1,405.6
|
|
|
$
|
1,175.5
|
|
|
$
|
995.1
|
|
Estimated
retained value of renewal
|
|
562.8
|
|
|
|
359.7
|
|
|
|
232.4
|
|
Total estimated
retained value
|
$
|
1,968.4
|
|
|
$
|
1,535.2
|
|
|
$
|
1,227.5
|
|
Non-GAAP Earnings per Share (EPS) Before
Noncontrolling Interests
We report GAAP EPS, which is based upon net income available
(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. Additionally, we have excluded the
effect of the goodwill impairment for the nine months ended
September 30, 2016 as it is a
non-cash, non-recurring event that is not representative of our
ongoing business. 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 ($0.33) and ($1.16)
for the three and nine months ended September 30, 2017.
Vivint Solar,
Inc.
|
|
Reconciliation
from GAAP EPS to Non-GAAP EPS
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2017
|
|
|
September 30,
2016
|
|
|
Net
Loss
|
|
|
EPS
|
|
|
Net
Loss
|
|
|
EPS
|
|
Net income available
to common stockholders
|
$
|
6,905
|
|
|
$
|
0.06
|
|
|
$
|
16,696
|
|
|
$
|
0.15
|
|
Net loss attributable
to non-controlling interests and redeemable non-controlling interests
|
|
(44,605)
|
|
|
|
(0.39)
|
|
|
|
(55,961)
|
|
|
|
(0.51)
|
|
Non-GAAP net
loss
|
$
|
(37,700)
|
|
|
$
|
(0.33)
|
|
|
$
|
(39,265)
|
|
|
$
|
(0.36)
|
|
Weighted-average
shares used in computing net loss per share
|
|
|
|
|
|
114,505
|
|
|
|
|
|
|
|
108,692
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September 30,
2017
|
|
|
September 30,
2016
|
|
|
Net
Loss
|
|
|
EPS
|
|
|
Net
Loss
|
|
|
EPS
|
|
Net income available
(loss attributable) to common stockholders
|
$
|
25,177
|
|
|
$
|
0.22
|
|
|
$
|
(2,152)
|
|
|
$
|
(0.02)
|
|
Net loss attributable
to non-controlling interests and redeemable non-controlling interests
|
|
(155,383)
|
|
|
$
|
(1.38)
|
|
|
|
(194,978)
|
|
|
$
|
(1.81)
|
|
Impairment of
goodwill
|
|
—
|
|
|
$
|
—
|
|
|
|
36,601
|
|
|
$
|
0.34
|
|
Non-GAAP net
loss
|
$
|
(130,206)
|
|
|
$
|
(1.16)
|
|
|
$
|
(160,529)
|
|
|
$
|
(1.49)
|
|
Weighted-average
shares used in computing net loss per share:
|
|
|
|
|
|
112,554
|
|
|
|
|
|
|
|
107,516
|
|
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
Vice President of Investor Relations
855-842-1844
ir@vivintsolar.com
Press Contact:
Ashlyn Hewlett
Method Communications
801-461-9772
ashlyn@methodcommunications.com
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SOURCE Vivint Solar