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