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Vivint Solar Reports Fourth Quarter and Full Year 2019 Results

LEHI, Utah , March 10, 2020 /PRNewswire/ -- Vivint Solar , Inc. (NYSE: VSLR), today announced financial results for the fourth quarter and full year ended December 31, 2019 .

Vivint Solar (PRNewsfoto/Vivint Solar)

Fourth Quarter 2019 Operating Highlights  

Key operating and development highlights include:

  • MW Installed of approximately 66 MWs for the quarter, up 22% over fourth quarter 2018. Total cumulative MWs installed were approximately 1,294 MWs.
  • Installations were 9,558 for the quarter, up 24% over fourth quarter 2018. Cumulative installations were 188,291.
  • Revenue was $77 million , up 21% over fourth quarter 2018.
  • Estimated Gross Retained Value increased by approximately $98 million during the quarter to approximately $2.3 billion . Estimated Gross Retained Value per Watt at quarter end was $1.98 .
  • Cost per Watt was $3.54 .
  • On an adjusted basis, margin created was $62 million , up 10% over fourth quarter 2018. Unlevered NPV per Watt was $0.94 . 1

 




1   Note: Margin created and NPV per Watt have been adjusted to account for the material lag of revenue recognition compared to MW Installed for system sales in the quarter.

Financing Activity

As of December 31, 2019 , Vivint Solar had approximately $224 million in undrawn capacity in various debt facilities and approximately 67 MWs of undeployed tax equity financing capacity. Subsequent to quarter end, Vivint Solar entered into a new tax equity partnership that is expected to provide another 28 MWs of tax equity capacity.

Summary Fourth Quarter 2019 Financial Results


$ amounts in millions, except per share data












Three Months Ended Dec. 31,


2019



2018



YoY

Revenue:










     Customer agreements and incentives

$

43.6



$

34.7



up 25%

     Solar energy system and product sales


33.5




28.7



up 17%

Total Revenue


77.1




63.5



up 21%

Cost of revenue:










     Customer agreements and incentives


54.1




42.7



up 27%

     Solar energy system and product sales


19.7




20.6



down 4%

Total cost of revenue


73.8




63.4



up 16%

Gross profit


3.3




0.1



up 3752%

Loss from operations


(66.5)




(40.0)



down 66%

Net loss attributable to common stockholders

$

(33.5)



$

(12.9)



down 161%

Net loss attributable per share to common stockholders

$

(0.27)



$

(0.11)



down 145%

Non-GAAP net loss per share

$

(1.02)



$

(0.73)



down 40%


Note: Totals may not sum due to rounding.

 

Summary Full Year 2019 Financial Results


 $ amounts in millions, except per share data












Year Ended Dec. 31,


2019



2018



YoY

Revenue:











     Operating leases and incentives

$

217.3



$

174.1



up 25%

     Solar energy system and product sales


123.7




116.3



up 6%

Total Revenue


341.0




290.3



up 17%

Cost of revenue:











     Operating leases and incentives


186.3




164.9



up 13%

     Solar energy system and product sales


72.2




83.4



down 13%

Total cost of revenue


258.5




248.3



up 4%

Gross profit


82.5




42.0



up 96%

Loss from Operations


(188.6)




(112.5)



down 68%

Net loss attributable to common stockholders

$

(102.2)



$

(15.6)



down 555%

Net loss attributable per share to common stockholders

$

(0.84)



$

(0.13)



down 546%

Non-GAAP net loss per share

$

(3.49)



$

(2.38)



down 47%


Note: Totals may not sum due to rounding.

Guidance for the First Quarter and Full Year 2020

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements supersede all prior statements regarding projected 2020 financial and operational results.

For the first quarter of 2020, Vivint Solar expects:

  • MW Installed: 57 - 60 MWs
  • Cost per Watt: $3.68 - $3.75

For the full year of 2020, Vivint Solar expects to grow MWs Installed at 15% to 20%.

Earnings Conference Call

Vivint Solar will host an investor conference call and live webcast today, Tuesday, March 10, 2020 , at 5:00 p.m. ET to discuss these financial results. To access the conference call, dial 1.833.286.5799 or 1.647.689.4443 for international callers. The conference ID is 737 8666. A listen-only webcast will be accessible on the investor relations page of Vivint Solar's website at investors.vivintsolar.com/ . 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 the help of Vivint Solar, homeowners can power their homes with clean, renewable energy, typically achieving significant financial savings over time. Vivint Solar designs and installs solar energy systems for homeowners and offers monitoring and maintenance services. In addition to being able to purchase a solar energy system outright, homeowners may benefit from Vivint Solar's affordable, flexible financing options, including power purchase agreements, or lease agreements, where available. Vivint Solar also offers solar plus storage systems with LG Chem home batteries and electric vehicle chargers with ChargePoint Home. 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, but not limited to, Vivint Solar's guidance for Megawatts Installed and Cost per Watt, undeployed tax equity financing capacity, growth prospects, and operating and financial results, such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, margin created and unlevered NPV 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 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, product offering mix, and costs effectively, including attracting, training and retaining sales professionals and solar energy system installers; the availability and price of solar panels and other system components; the potential inaccuracy of the assumptions employed in calculating our operating metrics; the course and outcome of litigation, regulatory investigations and other disputes; macroeconomic conditions and impact of the COVID-19 virus outbreak; and such other risks identified in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, or SEC, from time to time. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in those statements will be achieved or will occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Except as required by law, Vivint Solar does not undertake and expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. You should read the documents Vivint Solar has filed with the SEC for more complete information about Vivint Solar. These documents are available on both the EDGAR section of the SEC's website at www.sec.gov and the Investors section of Vivint Solar's website at investors.vivintsolar.com/ .

Vivint Solar, Inc.

Consolidated Unaudited Balance Sheets

(In thousands)









December   31,



December   31,


2019



2018

ASSETS







Current assets:







Cash and cash equivalents

$

166,048



$

219,591

Accounts receivable, net


24,314




14,207

Inventories


20,576




13,257

Prepaid expenses and other current assets


41,137




31,201

Total current assets


252,075




278,256

Restricted cash and cash equivalents


89,892




71,305

Solar energy systems, net


1,759,861




1,938,874

Property and equipment, net


17,500




10,730

Other non-current assets, net


680,062




28,090

TOTAL ASSETS

$

2,799,390



$

2,327,255

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY







Current liabilities:







Accounts payable

$

59,007



$

45,929

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


10,253




7,846

Accrued compensation


34,149




25,520

Current portion of long-term debt


16,405




12,155

Current portion of deferred revenue


40,715




30,199

Current portion of finance lease obligation


2,274




1,921

Accrued and other current liabilities


78,539




42,860

Total current liabilities


241,342




166,430

Long-term debt, net of current portion


1,483,256




1,203,282

Deferred revenue, net of current portion


17,631




13,524

Finance lease obligation, net of current portion


6,443




505

Deferred tax liability, net


583,695




437,120

Other non-current liabilities


74,423




24,610

Total liabilities


2,406,790




1,845,471

Commitments and contingencies







Redeemable non-controlling interests


115,384




119,572

Stockholders' equity:







Common stock


1,231




1,201

Additional paid-in capital


591,639




574,248

Accumulated other comprehensive loss


(20,436)




(7,223)

Accumulated deficit


(381,961)




(279,631)

Total stockholders' equity


190,473




288,595

Non-controlling interests


86,743




73,617

Total equity


277,216




362,212

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$

2,799,390



$

2,327,255

 

...

Vivint Solar, Inc.

Consolidated Unaudited Statements of Operations

(In thousands, except per share data)

















Three Months Ended



Year Ended


December   31,



December   31,


2019



2018



2019



2018

Revenue:















Customer agreements and incentives

$

43,554



$

34,717



$

217,331



$

174,066

Solar energy system and product sales


33,510




28,740




123,710




116,255

Total revenue


77,064




63,457




341,041




290,321

Cost of revenue:















Cost of revenuecustomer agreements and incentives


54,067




42,732




186,325




164,920

Cost of revenuesolar energy system and product sales


19,723




20,640




72,221




83,375

Total cost of revenue


73,790




63,372




258,546




248,295

Gross profit


3,274




85




82,495




42,026

Operating expenses:















Sales and marketing


38,402




17,951




151,194




58,950

Research and development


540




395




2,043




1,867

General and administrative


30,808




21,762




117,822




93,703

Total operating expenses


69,750




40,108




271,059




154,520

Loss from operations


(66,476)




(40,023)




(188,564)




(112,494)

Interest expense, net


20,920




18,335




82,323




65,308

Other (income) expense, net


(5,223)




1,833




1,434




(4,538)

Loss before income taxes


(82,173)




(60,191)




(272,321)




(173,264)

Income tax expense


43,152




26,606




150,999




106,299

Net loss


(125,325)




(86,797)




(423,320)




(279,563)

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


(91,794)




(73,933)




(321,145)




(263,971)

Net loss attributable to common stockholders

$

(33,531)



$

(12,864)



$

(102,175)



$

(15,592)

Net loss attributable per share to common stockholders:















Basic and diluted

$

(0.27)



$

(0.11)



$

(0.84)



$

(0.13)

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