LEHI, Utah, May 7, 2020 /PRNewswire/ -- Vivint Solar,
Inc. (NYSE: VSLR), today announced financial results for the first
quarter ended March 31, 2020.
First Quarter 2020 Operating Highlights
Key operating and development highlights include:
- MWs Installed of approximately 56 MWs for the quarter, up 23%
over the year ago period. Total cumulative MWs installed were
approximately 1,350 MWs.
- Installations were 8,238 for the quarter. Cumulative
installations were 196,529.
- Estimated Gross Retained Value increased by approximately
$88 million during the quarter to
approximately $2.4 billion. Estimated
Gross Retained Value per Watt at quarter end was $1.97.
- Cost per Watt was $3.80, an
increase from $3.54 in the fourth
quarter of 2019 and an increase from $3.46 in the first quarter of 2019.
- Margin created was $60 million, a
31% increase from the first quarter of 2019. Unlevered NPV per Watt
was $1.06.
David Bywater, Vivint Solar's
chief executive officer, stated, "COVID-19 has been unlike any
other crisis that we have experienced in our lifetimes. The health
and safety of our customers and employees has been our greatest
concern during this pandemic. We have responded by making painful
but necessary changes to our sales practices and cost structure.
Our team has shown great resilience and remains focused on the
values of our business. Although our volumes have declined, we
expect that navigating this crisis will make us a stronger and more
nimble company in the future."
Financing Activity
As of March 31, 2020, Vivint Solar
had $45 million in undrawn capacity
in the warehouse facility, $35
million in undrawn capacity in the 2019 forward flow loan
facility, $66 million in undrawn
capacity in the asset financing facility, and approximately 43 MWs
of undeployed tax equity financing capacity. Subsequent to quarter
end, Vivint Solar expanded an existing tax equity partnership
providing an anticipated additional 28MWs of tax equity financing
capacity.
Summary First Quarter 2020 Financial Results
|
$ amounts in
millions, except per share data
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Mar. 31
|
|
2020
|
|
|
2019
|
|
|
YoY
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Customer agreements and
incentives
|
$
|
51.3
|
|
|
$
|
39.6
|
|
|
up 29%
|
|
Solar energy system and
product sales
|
|
39.9
|
|
|
|
29.8
|
|
|
up 34%
|
|
Total
Revenue
|
|
91.2
|
|
|
|
69.4
|
|
|
up 31%
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
Customer agreements and
incentives
|
|
52.8
|
|
|
|
40.2
|
|
|
up 31%
|
|
Solar energy system and
product sales
|
|
22.0
|
|
|
|
17.3
|
|
|
up 28%
|
|
Total cost of
revenue
|
|
74.9
|
|
|
|
57.5
|
|
|
up 30%
|
|
Gross
profit
|
|
16.3
|
|
|
|
11.9
|
|
|
up 37%
|
|
Loss from
operations
|
|
(51.9)
|
|
|
|
(41.2)
|
|
|
down 26%
|
|
Net loss attributable
to common stockholders
|
$
|
(40.3)
|
|
|
$
|
(26.2)
|
|
|
down 53%
|
|
Net loss attributable
per share to common stockholders
|
$
|
(0.32)
|
|
|
$
|
(0.22)
|
|
|
down 45%
|
|
Non-GAAP net loss per
share
|
$
|
(1.01)
|
|
|
$
|
(0.74)
|
|
|
down 36%
|
|
|
Note: Totals may
not sum due to rounding.
|
Guidance for the Second Quarter 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 results.
For the second quarter of 2020, Vivint Solar expects:
- MWs Installed: 35 - 38 MWs
In addition, Vivint Solar is withdrawing its full year 2020
guidance that was provided on March 10,
2020.
Earnings Conference Call
Vivint Solar will host an investor conference call and live
webcast today, Thursday, May 7, 2020,
at 5:00 p.m. ET to discuss these
financial results. To access the conference call, dial
1.833.513.0547 or 1.236.714.2204 for international callers. The
conference ID is 286 1289. 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 Vivint Solar's guidance for MWs Installed,
undeployed tax equity financing capacity, growth prospects, and
operating and financial results, such as estimates of nominal
contracted payments remaining, estimated retained value, and
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 continued negative impact of the COVID-19 pandemic
on general economic conditions, the capital and credit markets, and
Vivint Solar's business, financial condition, liquidity and results
of operations; 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 personnel 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 and investigations; 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 investor relations section of Vivint Solar's
website at investors.vivintsolar.com/.
|
Vivint Solar,
Inc.
|
|
Condensed
Consolidated Unaudited Balance Sheets
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
131,077
|
|
|
$
|
166,048
|
|
Accounts receivable,
net
|
|
25,952
|
|
|
|
24,314
|
|
Inventories
|
|
14,383
|
|
|
|
20,576
|
|
Prepaid expenses and
other current assets
|
|
33,838
|
|
|
|
41,137
|
|
Total current
assets
|
|
205,250
|
|
|
|
252,075
|
|
Restricted cash and
cash equivalents
|
|
94,611
|
|
|
|
89,892
|
|
Solar energy systems,
net
|
|
1,854,904
|
|
|
|
1,759,861
|
|
Property and
equipment, net
|
|
20,888
|
|
|
|
17,500
|
|
Other non-current
assets, net
|
|
683,012
|
|
|
|
680,062
|
|
TOTAL
ASSETS
|
$
|
2,858,665
|
|
|
$
|
2,799,390
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
52,355
|
|
|
$
|
59,007
|
|
Distributions payable
to non-controlling interests and redeemable non-controlling
interests
|
|
7,474
|
|
|
|
10,253
|
|
Accrued
compensation
|
|
28,892
|
|
|
|
34,149
|
|
Current portion of
long-term debt
|
|
24,396
|
|
|
|
16,405
|
|
Current portion of
deferred revenue
|
|
24,631
|
|
|
|
40,715
|
|
Current portion of
finance lease obligation
|
|
2,497
|
|
|
|
2,274
|
|
Accrued and other
current liabilities
|
|
72,410
|
|
|
|
78,539
|
|
Total current
liabilities
|
|
212,655
|
|
|
|
241,342
|
|
Long-term debt, net
of current portion
|
|
1,548,228
|
|
|
|
1,483,256
|
|
Deferred revenue, net
of current portion
|
|
20,383
|
|
|
|
17,631
|
|
Finance lease
obligation, net of current portion
|
|
6,669
|
|
|
|
6,443
|
|
Deferred tax
liability, net
|
|
604,473
|
|
|
|
583,695
|
|
Other non-current
liabilities
|
|
137,245
|
|
|
|
74,423
|
|
Total
liabilities
|
|
2,529,653
|
|
|
|
2,406,790
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
116,481
|
|
|
|
115,384
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
1,247
|
|
|
|
1,231
|
|
Additional paid-in
capital
|
|
596,589
|
|
|
|
591,639
|
|
Accumulated other
comprehensive loss
|
|
(39,621)
|
|
|
|
(20,436)
|
|
Accumulated
deficit
|
|
(422,546)
|
|
|
|
(381,961)
|
|
Total
stockholders' equity
|
|
135,669
|
|
|
|
190,473
|
|
Non-controlling
interests
|
|
76,862
|
|
|
|
86,743
|
|
Total
equity
|
|
212,531
|
|
|
|
277,216
|
|
TOTAL LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
$
|
2,858,665
|
|
|
$
|
2,799,390
|
|
Vivint Solar,
Inc.
|
|
Condensed
Consolidated Unaudited Statements of Operations
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
|
2019
|
|
Revenue:
|
|
|
|
|
|
|
|
Customer agreements
and incentives
|
$
|
51,276
|
|
|
$
|
39,603
|
|
Solar energy system
and product sales
|
|
39,875
|
|
|
|
29,768
|
|
Total
revenue
|
|
91,151
|
|
|
|
69,371
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of
revenue—customer agreements and incentives
|
|
52,823
|
|
|
|
40,191
|
|
Cost of revenue—solar
energy system and product sales
|
|
22,048
|
|
|
|
17,263
|
|
Total cost of
revenue
|
|
74,871
|
|
|
|
57,454
|
|
Gross
profit
|
|
16,280
|
|
|
|
11,917
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
39,608
|
|
|
|
29,634
|
|
Research and
development
|
|
556
|
|
|
|
469
|
|
General and
administrative
|
|
28,026
|
|
|
|
23,049
|
|
Total operating
expenses
|
|
68,190
|
|
|
|
53,152
|
|
Loss from
operations
|
|
(51,910)
|
|
|
|
(41,235)
|
|
Interest expense,
net
|
|
21,632
|
|
|
|
19,127
|
|
Other expense,
net
|
|
28,358
|
|
|
|
1,385
|
|
Loss before income
taxes
|
|
(101,900)
|
|
|
|
(61,747)
|
|
Income tax
expense
|
|
23,414
|
|
|
|
27,487
|
|
Net loss
|
|
(125,314)
|
|
|
|
(89,234)
|
|
Net loss attributable
to non-controlling interests and redeemable non-controlling interests
|
|
(85,054)
|
|
|
|
(62,992)
|
|
Net loss attributable
to common stockholders
|
$
|
(40,260)
|
|
|
$
|
(26,242)
|
|
Net loss attributable
per share to common stockholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.32)
|
|
|
$
|
(0.22)
|
|
Weighted-average
shares used in computing net loss attributable per share to common stockholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
123,922
|
|
|
|
120,307
|
|
Vivint Solar,
Inc.
|
|
Condensed
Consolidated Unaudited Statements of Cash Flows
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
|
2019
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(125,314)
|
|
|
$
|
(89,234)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
21,224
|
|
|
|
17,659
|
|
Deferred income
taxes
|
|
27,937
|
|
|
|
27,727
|
|
Stock-based
compensation
|
|
3,939
|
|
|
|
3,679
|
|
Loss on solar energy
systems and property and equipment
|
|
4,811
|
|
|
|
1,233
|
|
Noncash interest and
other expense
|
|
1,553
|
|
|
|
1,645
|
|
Reduction in lease
pass-through financing obligation
|
|
(712)
|
|
|
|
(695)
|
|
Losses on interest
rate swaps
|
|
28,358
|
|
|
|
1,384
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(1,948)
|
|
|
|
(5,785)
|
|
Inventories
|
|
6,193
|
|
|
|
1,725
|
|
Prepaid expenses and
other current assets
|
|
6,227
|
|
|
|
2,746
|
|
Other non-current
assets, net
|
|
(51,116)
|
|
|
|
(26,539)
|
|
Accounts
payable
|
|
5,062
|
|
|
|
1,876
|
|
Accrued
compensation
|
|
(5,460)
|
|
|
|
(4,068)
|
|
Deferred
revenue
|
|
(13,332)
|
|
|
|
(2,731)
|
|
Accrued and other
liabilities
|
|
(3,284)
|
|
|
|
(615)
|
|
Net cash used in
operating activities
|
|
(95,862)
|
|
|
|
(69,993)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Payments for the cost
of solar energy systems
|
|
(79,190)
|
|
|
|
(64,526)
|
|
Payments for property
and equipment
|
|
(2,361)
|
|
|
|
(291)
|
|
Proceeds from
disposals of solar energy systems and property and
equipment
|
|
890
|
|
|
|
649
|
|
Purchase of intangible
assets
|
|
(228)
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(80,889)
|
|
|
|
(64,168)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
investment by non-controlling interests and redeemable
non-controlling interests
|
|
85,749
|
|
|
|
84,368
|
|
Distributions paid to
non-controlling interests and redeemable non-controlling
interests
|
|
(12,258)
|
|
|
|
(9,013)
|
|
Proceeds from
long-term debt
|
|
77,373
|
|
|
|
61,355
|
|
Payments on long-term
debt
|
|
(5,073)
|
|
|
|
(5,593)
|
|
Proceeds from lease
pass-through financing obligation
|
|
877
|
|
|
|
864
|
|
Principal payments on
finance lease obligations
|
|
(1,196)
|
|
|
|
(271)
|
|
Net proceeds from
issuance of common stock
|
|
1,027
|
|
|
|
39
|
|
Net cash provided by
financing activities
|
|
146,499
|
|
|
|
131,749
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS
|
|
(30,252)
|
|
|
|
(2,412)
|
|
CASH AND CASH
EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—Beginning of
period
|
|
255,940
|
|
|
|
290,896
|
|
CASH AND CASH
EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—End of period
|
$
|
225,688
|
|
|
$
|
288,484
|
|
Vivint Solar,
Inc.
|
|
Key Operating
Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
2020
|
|
|
2019
|
|
|
2019
|
|
Installations
|
|
8,238
|
|
|
|
9,558
|
|
|
|
6,514
|
|
Megawatts
installed
|
|
56.1
|
|
|
|
66.4
|
|
|
|
45.6
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
2020
|
|
|
2019
|
|
|
2019
|
|
Cumulative
installations
|
|
196,529
|
|
|
|
188,291
|
|
|
|
161,112
|
|
Cumulative
megawatts installed
|
|
1,350.1
|
|
|
|
1,294.0
|
|
|
|
1,106.5
|
|
Estimated
nominal contracted payments remaining (in millions)
|
$
|
4,636.6
|
|
|
$
|
4,434.0
|
|
|
$
|
3,795.8
|
|
Estimated retained
value under energy contracts (in millions)
|
$
|
1,747.7
|
|
|
$
|
1,690.0
|
|
|
$
|
1,549.7
|
|
Estimated retained
value of renewal (in millions)
|
$
|
630.6
|
|
|
$
|
600.7
|
|
|
$
|
501.0
|
|
Estimated gross
retained value (in millions)
|
$
|
2,378.3
|
|
|
$
|
2,290.7
|
|
|
$
|
2,050.7
|
|
Estimated gross
retained value per watt
|
$
|
1.97
|
|
|
$
|
1.98
|
|
|
$
|
2.04
|
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 March 31, 2020,
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
|
$
|
2,045.7
|
|
|
$
|
1,747.7
|
|
|
$
|
1,510.5
|
|
Estimated
retained value of renewal
|
|
965.0
|
|
|
|
630.6
|
|
|
|
416.5
|
|
Total estimated
gross retained value
|
$
|
3,010.7
|
|
|
$
|
2,378.3
|
|
|
$
|
1,927.0
|
Non-GAAP Earnings per Share (EPS) Before
Non-controlling Interests
We report GAAP EPS, which is based upon net 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. 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 ($1.01) for the three months ended March 31, 2020.
|
Vivint Solar,
Inc.
|
|
Reconciliation
from GAAP EPS to Non-GAAP EPS
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31, 2020
|
|
|
March 31, 2019
|
|
Net
Loss
|
|
|
EPS
|
|
|
Net
Loss
|
|
|
EPS
|
|
Net loss attributable
to common stockholders
|
$
|
(40,260)
|
|
|
$
|
(0.32)
|
|
|
$
|
(26,242)
|
|
|
$
|
(0.22)
|
|
Net loss attributable
to non-controlling interests and redeemable non-controlling interests
|
|
(85,054)
|
|
|
|
(0.69)
|
|
|
|
(62,992)
|
|
|
|
(0.52)
|
|
Non-GAAP net
loss
|
$
|
(125,314)
|
|
|
$
|
(1.01)
|
|
|
$
|
(89,234)
|
|
|
$
|
(0.74)
|
|
Weighted-average
shares used in computing net loss per share
|
|
|
|
|
|
123,922
|
|
|
|
|
|
|
|
120,307
|
Glossary of Definitions
"Cost per Watt" represents the unit
costs of installed solar energy systems on customers' premises.
Please refer to Vivint Solar's Estimated Cost per Watt Methodology
found on the investor relations page of Vivint Solar's website.
"Installations" represents the number of
solar energy systems installed on customers' premises.
"MWs or megawatts" represents the DC
nameplate megawatt production capacity.
"MWs 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.
"Estimated 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.
"Estimated Gross Retained
Value" represents the net cash flows, discounted at
6%, that Vivint Solar expects to receive from customers pursuant to
long-term customer contracts plus the value of contracted SRECs net
of estimated cash distributions to fund investors, debt associated
with our forward flow facilities, 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 and 25
year terms of Vivint Solar's contracts plus the value of contracted
SRECs, which Vivint Solar refers to as estimated retained value
under energy contracts, and the estimated retained value associated
with an assumed 5 and 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.
"Estimated Gross 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.
"Project Value" represents the net cash
flows, discounted at 6% that Vivint Solar expects to receive from
customers net of estimated distributions to fund investors and
operating expenses, estimated utility and state incentives, and
estimated finance proceeds from fund investors.
"NPV / Watt" represents the estimated
weighted average unit margin of Vivint Solar's PPA / Lease business
and its system sales business. It is calculated by dividing Margin
Created during the period by the total MWs Installed during the
period.
"Margin Created" represents the estimated
margin created during the period. It is the estimated expected
value of the PPA / Lease agreements and the value of the system
sales less the costs required to create the value. Specifically, it
is the sum of the project value per Watt multiplied by MWs
Installed – PPA/Lease and Revenue – solar energy system and product
sales less total creation costs.
"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:
Wyatt Semanek
Public Relations Manager
385-202-6577
pr@vivintsolar.com
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SOURCE Vivint Solar, Inc.