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8-K - 8-K - Vivint Solar, Inc.vslr-8k_20150811.htm

Exhibit 99.1

 

VIVINT SOLAR ANNOUNCES SECOND QUARTER 2015 FINANCIAL RESULTS

 

Megawatts Installed Increased 78% Year-over-Year

Retained Value Increased 119% Year-over-Year

Revenue Increased 146% Year-over-Year

 

 

LEHI, Utah, August 11, 2015 -- Vivint Solar (NYSE: VSLR), today announced financial results for the second quarter ended June 30, 2015.

 

Second Quarter 2015 Operating Highlights

 

Key operating and development highlights for the quarter ended June 30, 2015 include:

 

·

MW Booked of approximately 73 MWs for the quarter, up 40% year-over-year.

 

·

MW Installed of approximately 66 MWs, up 78% year-over-year. Total cumulative MWs installed were approximately 340 MWs.

 

·

Installations were 9,312 for the quarter, up 72% year-over-year. Cumulative installations were 51,458.

 

·

Estimated Nominal Contracted Payments Remaining increased by approximately $238 million during the quarter and was approximately $1.4 billion, up 123% year-over-year.

 

·

Estimated Retained Value increased by approximately $120 million during the quarter to approximately $680 million, up 119% year-over-year.

 

·

Estimated Retained Value per Watt was $2.00.

 

·

Cost per Watt was $3.00, down from $3.21 in the first quarter of 2015 and down from $3.55 in the second quarter of 2014.

 

Second Quarter 2015 GAAP Financial Results

 

Summary GAAP financial results for the quarter ended June 30, 2015 include:

 


·

Operating Leases and Incentives Revenue was $15.3 million, up 164% from $5.8 million in the second quarter of the prior year. Total revenue for the quarter was $16.1 million, up 146% from $6.6 million in the second quarter of the prior year.

 

·

Cost of Revenue – Operating Leases and Incentives was $33.3 million, up from $16.5 million in the same period of 2014.

 

·

Total Operating Expenses, including cost of revenue, were $88.5 million, compared to $40.7 million in the second quarter of 2014. Operating expenses included non-cash stock-based compensation expense of $17.9 million and amortization of intangibles of $3.7 million.

 

·

Loss from Operations was $72.3 million compared to $34.1 million in the same period of 2014.

 

·

GAAP Net Income Available to Stockholders per Diluted Share was $0.12.

 

·

Non-GAAP Loss Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share was ($0.85). See below for a further discussion of Non-GAAP Loss per Share.

 

·

Cash and Cash Equivalents as of June 30, 2015 were $152.2 million.

 

Financing Activity

 

As of June 30, 2015, the Company had $100 million in undrawn capacity in our working capital facility, $216.5 million in undrawn capacity in our aggregation facility, and 231 MWs of installation capacity remaining in our tax equity funds.

 

 

About Vivint Solar

 

Vivint Solar is a leading provider of distributed solar energy systems – electricity generated by a solar energy system installed at a customer’s location – to residential customers in the United States. Vivint Solar’s customers pay little to no money upfront, receive significant savings relative to utility generated electricity rates and continue to benefit from guaranteed energy prices over the 20-year term of their contracts.  Vivint Solar finances, designs, installs, monitors and services the solar energy systems to make things easy for its customers. For more information, visit www.vivintsolar.com or follow @VivintSolar.

 

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 operating and financial results such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, and 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 state incentives, that affect the pricing of our offering; 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; the proposed acquisition by SunEdison, Inc. does not close due to the failure to obtain financing for the payment of consideration in the transaction or regulatory approval or otherwise; the disruption to our business caused by the acquisition by SunEdison is greater than expected and makes it difficult to operate as a standalone company or maintain certain strategic relationships; Vivint Solar’s limited operating history, particularly as a new public company; 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 www.vivintsolar.com



Vivint Solar, Inc.

 

Condensed Consolidated Unaudited Balance Sheets

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

2015

 

 

2014

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

152,224

 

 

$

261,649

 

Accounts receivable, net

 

5,423

 

 

 

1,837

 

Inventories

 

342

 

 

 

774

 

Prepaid expenses and other current assets

 

20,209

 

 

 

16,806

 

Total current assets

 

178,198

 

 

 

281,066

 

Restricted cash and cash equivalents

 

12,648

 

 

 

6,516

 

Solar energy systems, net

 

848,604

 

 

 

588,167

 

Property and equipment, net

 

24,403

 

 

 

13,024

 

Intangible assets, net

 

6,827

 

 

 

18,487

 

Goodwill

 

36,601

 

 

 

36,601

 

Prepaid tax asset, net

 

199,103

 

 

 

111,910

 

Other non-current assets, net

 

9,534

 

 

 

8,553

 

TOTAL ASSETS

$

1,315,918

 

 

$

1,064,324

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

79,452

 

 

$

51,354

 

Accounts payable—related party

 

1,978

 

 

 

2,132

 

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

 

5,805

 

 

 

6,780

 

Accrued compensation

 

26,087

 

 

 

16,794

 

Current portion of deferred revenue

 

399

 

 

 

314

 

Current portion of capital lease obligation

 

4,473

 

 

 

3,502

 

Accrued and other current liabilities

 

25,710

 

 

 

14,016

 

Total current liabilities

 

143,904

 

 

 

94,892

 

Capital lease obligation, net of current portion

 

7,851

 

 

 

6,176

 

Long-term debt

 

208,500

 

 

 

105,000

 

Deferred tax liability, net

 

168,114

 

 

 

112,227

 

Deferred revenue, net of current portion

 

7,132

 

 

 

4,466

 

Build-to-suit lease liability

 

6,600

 

 

 

 

Total liabilities

 

542,101

 

 

 

322,761

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable non-controlling interests

 

153,901

 

 

 

128,427

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

1,065

 

 

 

1,053

 

Additional paid-in capital

 

525,638

 

 

 

502,785

 

Accumulated deficit

 

(47

)

 

 

(25,849

)

Total stockholders' equity

 

526,656

 

 

 

477,989

 

Non-controlling interests

 

93,260

 

 

 

135,147

 

Total equity

 

619,916

 

 

 

613,136

 

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

1,315,918

 

 

$

1,064,324

 

 



Vivint Solar, Inc.

 

Condensed Consolidated Unaudited Statements of Operations

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases and incentives

$

15,301

 

 

$

5,804

 

 

$

23,881

 

 

$

8,667

 

Solar energy system and product sales

 

834

 

 

 

754

 

 

 

1,799

 

 

 

1,398

 

Total revenue

 

16,135

 

 

 

6,558

 

 

 

25,680

 

 

 

10,065

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue—operating leases and incentives

 

33,295

 

 

 

16,459

 

 

 

57,175

 

 

 

27,646

 

Cost of revenue—solar energy system and product sales

 

476

 

 

 

485

 

 

 

914

 

 

 

883

 

Sales and marketing

 

18,697

 

 

 

5,790

 

 

 

25,130

 

 

 

11,009

 

Research and development

 

920

 

 

 

500

 

 

 

1,502

 

 

 

972

 

General and administrative

 

31,364

 

 

 

13,752

 

 

 

49,994

 

 

 

26,106

 

Amortization of intangible assets

 

3,721

 

 

 

3,691

 

 

 

7,484

 

 

 

7,428

 

Impairment of intangible assets

 

 

 

 

 

 

 

4,506

 

 

 

 

Total operating expenses

 

88,473

 

 

 

40,677

 

 

 

146,705

 

 

 

74,044

 

Loss from operations

 

(72,338

)

 

 

(34,119

)

 

 

(121,025

)

 

 

(63,979

)

Interest expense

 

2,730

 

 

 

2,673

 

 

 

4,857

 

 

 

4,074

 

Other expense

 

60

 

 

 

277

 

 

 

373

 

 

 

1,165

 

Loss before income taxes

 

(75,128

)

 

 

(37,069

)

 

 

(126,255

)

 

 

(69,218

)

Income tax expense

 

14,577

 

 

 

2,542

 

 

 

23,425

 

 

 

6,936

 

Net loss

 

(89,705

)

 

 

(39,611

)

 

 

(149,680

)

 

 

(76,154

)

Net loss attributable to non-controlling interests and redeemable

   non-controlling interests

 

(103,358

)

 

 

(45,104

)

 

 

(175,482

)

 

 

(88,688

)

Net income available to common stockholders

$

13,653

 

 

$

5,493

 

 

$

25,802

 

 

$

12,534

 

Net income available per share to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.13

 

 

$

0.07

 

 

$

0.24

 

 

$

0.17

 

Diluted

$

0.12

 

 

$

0.07

 

 

$

0.24

 

 

$

0.16

 

Weighted-average shares used in computing net income

   available per share to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

105,988

 

 

 

75,000

 

 

 

105,647

 

 

 

75,000

 

Diluted

 

109,794

 

 

 

76,267

 

 

 

109,424

 

 

 

76,194

 

 



Vivint Solar, Inc.

 

Condensed Consolidated Unaudited Statements of Cash Flows

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(89,705

)

 

$

(39,611

)

 

$

(149,680

)

 

$

(76,154

)

Adjustments to reconcile net loss to net cash used in operating

   activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

5,545

 

 

 

1,700

 

 

 

9,753

 

 

 

3,009

 

Amortization of intangible assets

 

3,721

 

 

 

3,764

 

 

 

7,484

 

 

 

7,501

 

Impairment of intangible assets

 

 

 

 

 

 

 

4,506

 

 

 

 

Stock-based compensation

 

17,903

 

 

 

379

 

 

 

20,610

 

 

 

816

 

Amortization of deferred financing costs

 

877

 

 

 

667

 

 

 

1,672

 

 

 

667

 

Noncash contributions for services

 

 

 

 

55

 

 

 

 

 

 

119

 

Noncash interest expense

 

 

 

 

1,478

 

 

 

 

 

 

2,877

 

Deferred income taxes

 

37,179

 

 

 

18,029

 

 

 

54,203

 

 

 

35,865

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

(2,049

)

 

 

(1,073

)

 

 

(3,586

)

 

 

(1,701

)

Inventories

 

430

 

 

 

(70

)

 

 

432

 

 

 

16

 

Prepaid expenses and other current assets

 

476

 

 

 

(4,795

)

 

 

252

 

 

 

(8,928

)

Prepaid tax asset, net

 

(50,756

)

 

 

(13,292

)

 

 

(87,193

)

 

 

(23,800

)

Other non-current assets, net

 

(324

)

 

 

(5,367

)

 

 

(228

)

 

 

(6,271

)

Accounts payable

 

1,022

 

 

 

1,091

 

 

 

1,051

 

 

 

5,091

 

Accounts payable—related party

 

154

 

 

 

873

 

 

 

(154

)

 

 

(761

)

Accrued compensation

 

4,080

 

 

 

1,373

 

 

 

3,611

 

 

 

(3,351

)

Deferred revenue

 

1,262

 

 

 

307

 

 

 

2,751

 

 

 

680

 

Accrued and other current liabilities

 

(9,344

)

 

 

4,329

 

 

 

10,927

 

 

 

6,108

 

Net cash used in operating activities

 

(79,529

)

 

 

(30,163

)

 

 

(123,589

)

 

 

(58,217

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments for the cost of solar energy systems

 

(125,865

)

 

 

(90,678

)

 

 

(234,050

)

 

 

(150,449

)

Payment in connection with business acquisition, net of cash

   acquired

 

 

 

 

 

 

 

 

 

 

(12,040

)

Payments for property and equipment

 

(2,226

)

 

 

(87

)

 

 

(3,402

)

 

 

(148

)

Change in restricted cash and cash equivalents

 

(488

)

 

 

(1,600

)

 

 

(6,132

)

 

 

(1,600

)

Purchase of intangible assets

 

(307

)

 

 

 

 

 

(329

)

 

 

 

Proceeds from U.S. Treasury grants

 

 

 

 

62

 

 

 

 

 

 

190

 

Net cash used in investing activities

 

(128,886

)

 

 

(92,303

)

 

 

(243,913

)

 

 

(164,047

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from investment by non-controlling interests and

   redeemable non-controlling interests

 

87,565

 

 

 

61,561

 

 

 

168,783

 

 

 

157,446

 

Distributions paid to non-controlling interests and redeemable non-

   controlling interests

 

(8,324

)

 

 

(851

)

 

 

(10,689

)

 

 

(1,932

)

Proceeds from long-term debt

 

86,000

 

 

 

 

 

 

103,500

 

 

 

 

Proceeds from short-term debt

 

 

 

 

75,500

 

 

 

 

 

 

75,500

 

Payments for debt issuance costs

 

 

 

 

 

 

 

(3,078

)

 

 

 

Proceeds from revolving lines of credit—related party

 

 

 

 

24,000

 

 

 

 

 

 

114,000

 

Payments on revolving lines of credit—related party

 

 

 

 

(24,000

)

 

 

 

 

 

(101,000

)

Principal payments on capital lease obligations

 

(1,057

)

 

 

(671

)

 

 

(2,070

)

 

 

(1,115

)

Proceeds from issuance of common stock

 

588

 

 

 

 

 

 

588

 

 

 

 

Payments for deferred offering costs

 

 

 

 

(1,268

)

 

 

(589

)

 

 

(1,443

)

Excess tax effects from stock-based compensation

 

1,632

 

 

 

 

 

 

1,632

 

 

 

 

Net cash provided by financing activities

 

166,404

 

 

 

134,271

 

 

 

258,077

 

 

 

241,456

 

NET (DECREASE) INCREASE IN CASH AND CASH

   EQUIVALENTS

 

(42,011

)

 

 

11,805

 

 

 

(109,425

)

 

 

19,192

 

CASH AND CASH EQUIVALENTS—Beginning of period

 

194,235

 

 

 

13,425

 

 

 

261,649

 

 

 

6,038

 

CASH AND CASH EQUIVALENTS—End of period

$

152,224

 

 

$

25,230

 

 

$

152,224

 

 

$

25,230

 



Vivint Solar, Inc.

 

Key Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

2015

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

Installations

 

9,312

 

 

 

6,426

 

 

 

6,864

 

Megawatts installed

 

65.5

 

 

 

46.2

 

 

 

50.0

 

Cumulative installations

 

51,458

 

 

 

42,146

 

 

 

35,720

 

Cumulative megawatts installed

 

339.9

 

 

 

274.4

 

 

 

228.2

 

Estimated nominal contracted payments remaining (in millions)

$

1,442.5

 

 

$

1,204.8

 

 

$

1,030.5

 

      Estimated retained value under energy contract (in millions)

$

531.3

 

 

$

442.8

 

 

$

383.1

 

      Estimated retained value of renewal (in millions)

$

148.7

 

 

$

117.2

 

 

$

97.9

 

Estimated retained value (in millions)

$

680.0

 

 

$

560.0

 

 

$

480.9

 

Estimated retained value per watt

$

2.00

 

 

$

2.05

 

 

$

2.11

 



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

 

We report GAAP EPS, which is based upon net 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 ($0.85) and ($1.42) for the three and six months ended June 30, 2015.

 

Vivint Solar, Inc.

 

Non-GAAP Net Loss per Share

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Net loss

$

(89,705

)

 

$

(39,611

)

 

$

(149,680

)

 

$

(76,154

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

(0.85

)

 

$

(0.53

)

 

$

(1.42

)

 

$

(1.02

)

Weighted-average shares used in computing net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

105,988

 

 

 

75,000

 

 

 

105,647

 

 

 

75,000

 



Glossary of Definitions

 

Installationsrepresents 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.

 

 

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Investor Contact:

 

Vivint Solar
Rob Kain
Vice President of Investor Relations
801-234-7066

ir@vivintsolar.com

 

Media Contact:

 

Vivint Solar
Casey Briggs
Public Relations
801-229-6443

PR@vivintsolar.com