First Quarter 2020 Highlights
- Added approximately 6,800 customers in the first quarter of
2020, bringing total customer count to 85,400 as of March 31,
2020;
- Increased storage attachment rate on origination to 30% in the
first quarter of 2020;
- Closed a private placement of convertible debt for up to $190
million and an additional privately negotiated exchange of $55
million of our existing convertible debt for an equal principal
amount; and
- Reaffirmed full-year 2020 guidance despite recent public health
and economic challenges.
Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), one
of the leading U.S. residential solar and storage service
providers, today announced financial results for the quarter ended
March 31, 2020.
"As a leading residential solar and storage provider in the
United States, Sunnova has a deep commitment to providing
best-in-class energy service to our customers, in good times and in
bad. As the world learns how to navigate the many challenges
brought on by the COVID-19 pandemic, we realize that the work we do
has become more essential than ever before," said William J. (John)
Berger, Chief Executive Officer of Sunnova. "Despite these
challenges, as a designated essential service provider, we
responded quickly and decisively in the early days of COVID-19 to
ensure not only the health and safety of our customers, dealers,
and employees, but to also ensure our customers continued to
receive the highest level of service. In addition, we have made
every effort to position the company with ample liquidity by
cutting costs and closing on several key financing transactions,
includes additional tax equity, amendments to expand our warehouse
facilities for third party operated assets, and up to $190 million
of convertible debt. This capital will provide the liquidity
Sunnova needs to continue our strong growth and to be fully
prepared for any future market disruptions as a result of this
crisis.
“Thanks to the steps we have taken to minimize the operational
and financial impact of COVID-19 on the business, coupled with our
disciplined approach, flexible business model, strong first quarter
2020 results, and the ability of our dealers to quickly pivot to
new virtual online sales practices, we are pleased to be able to
reaffirm our 2020 guidance."
Mr. Berger added, "With millions of Americans now working from
home, and economic hardship beginning to grip the country,
consumers are now focused more than ever on ensuring the power they
consume is clean, affordable, and resilient so they can power their
homes even when the electric grid fails them. This new reality has
led to consumers seeking out greener, more economic, and more
reliable sources of power, which we are able to provide with our
Sunnova SunSafeTM solar + storage product.
“During these difficult times, Sunnova has remained focused on
delivering energy independence to its customers. Due to the hard
work of our employees and our dealers, we are confident we will
emerge from this crisis stronger than ever."
First Quarter 2020 Results
Revenue increased to $29.8 million, or by $3.1 million, in the
three months ended March 31, 2020 compared to the three months
ended March 31, 2019. This increase in revenues is primarily a
result of an increase in the number of customers served.
Total operating expense, net increased to $44.1 million, or by
$12.9 million, in the three months ended March 31, 2020 compared to
the three months ended March 31, 2019. This increase is the result
of an increase in the number of customers served, greater
depreciation expense, and higher period-over-period general and
administrative expenses due to the hiring of personnel to support
growth.
Adjusted Operating Expense increased to $23.6 million, or by
$5.0 million, in the three months ended March 31, 2020 compared to
the three months ended March 31, 2019. This increase is the result
of an increase in the number of customers served and higher
period-over-period general and administrative expenses due to the
hiring of personnel to support growth.
Sunnova incurred a net loss of $77.0 million for the three
months ended March 31, 2020 compared to a net loss of $35.5 million
for the three months ended March 31, 2019. This larger net loss was
driven by the factors described above as well as higher net
interest expense, including higher realized net losses on interest
rate swaps.
Adjusted EBITDA was $6.2 million for the three months ended
March 31, 2020 compared to $8.1 million for the three months ended
March 31, 2019, a decrease of $1.9 million. Customer principal (net
of amounts recorded in revenue) and interest payments received from
solar loans increased to $6.4 million and $4.4 million,
respectively, for the three months ended March 31, 2020, or by $2.9
million and $2.0 million, respectively, compared to the three
months ended March 31, 2019. The overall increase in this activity
was driven by customer growth increasing at a faster rate than
expenses.
Net cash used in operating activities was $58.1 million for the
three months ended March 31, 2020 compared to $24.4 million for the
three months ended March 31, 2019. This change was primarily due to
an increase in payments to dealers for exclusivity and other bonus
arrangements with net outflows of $5.3 million in 2020 compared to
$2.0 million in 2019. This increase in net cash used in operations
is also due to net outflows of $39.9 million in 2020 compared to
net outflows of $7.9 million in 2019 based on (a) our net loss of
$77.0 million in 2020 excluding non-cash operating items of $37.1
million and (b) our net loss of $35.5 million in 2019 excluding
non-cash operating items of $27.6 million. These net differences
between the two periods results in a net change in operating cash
flow of $32.0 million in 2020 compared to 2019 primarily driven by
an increase in realized loss on interest rate swaps of $28.3
million due to the termination of certain debt facilities in
2020.
Adjusted Operating Cash Flow was $(20.1) million in the three
months ended March 31, 2020 compared to $(15.9) million for the
three months ended March 31, 2019. This decrease in Adjusted
Operating Cash Flow was primarily due to changes in our working
capital and higher interest expense.
Liquidity & Capital Resources
As of March 31, 2020, Sunnova had total cash of $169.2 million,
including restricted and unrestricted cash.
On May 13, 2020, Sunnova entered into a new $130 million senior
unsecured convertible note facility (the "Facility") to issue and
sell $130.0 million aggregate principal amount of 9.75% convertible
senior notes due 2025 (the "new notes") in a private placement. The
Facility includes a 30-day option in which the investors may
purchase up to $60 million in additional notes. The notes are
convertible at the option of the investors at an initial conversion
rate equivalent to $13.50 per share of common stock. The company
may convert the notes under certain circumstances on or after May
14, 2023. The investors included affiliates of Kayne Anderson
Capital Advisors, L.P., who acted as lead investor, as well as
Liberty Mutual Group, Newlight Partners LP, and Magnetar Capital.
BofA Securities, Inc. acted as sole capital markets advisor on the
transaction.
The Company also announced that it entered into privately
negotiated exchanges (the “Exchanges”) with a small number of
institutional investors in its 7.75% convertible senior notes due
2027 (the “existing notes") whereby such investors exchanged all
$55.0 million aggregate principal amount of existing notes for an
equal principal amount of the new notes. The Facility and the
Exchanges are expected to close on or about May 14, 2020, subject
to customary closing conditions.
The Company offered and sold the new notes to the investors in
reliance on the exemption from registration provided by Section
4(a)(2) of the Securities Act, in reliance upon the safe harbor
provided by Rule 506(c) of Regulation D promulgated thereunder.
The new notes have not been registered under the Securities Act,
or any state securities law and, unless so registered, may not be
offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as
amended, and applicable state securities laws. This press release
does not constitute an offer to sell, or a solicitation of an offer
to buy, any security and shall not constitute an offer,
solicitation or sale in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful.
Billing and Collections
To date, Sunnova customer payment behavior has not materially
changed since the onset of COVID-19. The percentage of Sunnova
customer payables collected in April was 99.5% of the preceding
twelve-month average. Customer payments for the month of May have
not fully settled through the commercial bank processing network,
but management is encouraged by intra-month cycle draft results and
other leading customer payment indicators.
2020 Guidance
While the full impact of COVID-19 is still unknown, Sunnova’s
business model, strong first quarter in-service achievements, the
large backlog of systems that are mechanically completed and
awaiting permission to operate from the local authorities having
jurisdiction, current pace of origination and placement of solar
energy systems in-service, and the proactive measures that the
company has taken to respond to changing conditions, has allowed
management to reaffirm full-year 2020 guidance of:
- Customer additions of 28,000 - 30,000;
- Adjusted EBITDA of $58 million - $62 million;
- Customer principal payments received from solar loans, net of
amounts recorded in revenue of $32 million - $36 million;
- Customer interest payments received from solar loans of $17
million - $21 million; and
- Adjusted Operating Cash Flow of $10 million - $20 million
“We have a high level of confidence in achieving our 2020
financial targets as our business model continues to provide
excellent visibility into future cash flows,” added Mr. Berger.
“This visibility is reflected in the fact 91% of the mid-point of
our 2020 targeted revenue and principal and interest from solar
loans is locked in through existing customers as of May 1,
2020.
“Critical to our ability to reaffirm our 2020 guidance is the
fact that our dealers continued to work closely with their
respective authorities having jurisdiction to place customers
in-service through electronic and digital actions, which allowed us
to meet our April in-service goal,” Mr. Berger continued.
“Additionally, sales volumes increased throughout the month of
April and into May as our dealers began to recover from the
slowdown they experienced in March as they transitioned to
zero-contact sales practices.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. ("GAAP"). We believe
certain financial measures, such as Adjusted EBITDA, Adjusted
Operating Expense and Adjusted Operating Cash Flow, which are
non-GAAP measures, provide users of our financial statements with
supplemental information that may be useful in evaluating our
business. We use Adjusted EBITDA and Adjusted Operating Expense as
performance measures, and believe investors and securities analysts
also use Adjusted EBITDA and Adjusted Operating Expense in
evaluating our performance. While Adjusted EBITDA effectively
captures the operating performance of our leases and PPAs, it only
reflects the service portion of the operating performance under our
loan agreements. Therefore, we separately show customer P&I
payments. Adjusted EBITDA is also used by our management for
internal planning purposes, including our consolidated operating
budget, and by our board of directors in setting performance-based
compensation targets. We use Adjusted Operating Cash Flow as a
liquidity measure and believe Adjusted Operating Cash Flow is a
supplemental financial measure useful to management, analysts,
investors, lenders and rating agencies as an indicator of our
ability to internally fund origination activities, service or incur
additional debt and service our contractual obligations. We believe
investors and analysts will use Adjusted Operating Cash Flow to
evaluate our liquidity and ability to service our contractual
obligations. However, Adjusted Operating Cash Flow has limitations
as an analytical tool because it does not account for all future
expenditures and financial obligations of the business or reflect
unforeseen circumstances that may impact our future cash flows, all
of which could have a material effect on our financial condition
and results of operations. We believe that such non-GAAP measures,
when read in conjunction with our operating results presented under
GAAP, can be used both to better assess our business from period to
period and to better assess our business against other companies in
our industry, without regard to financing methods, historical cost
basis or capital structure. Our calculation of these non-GAAP
financial measures may differ from similarly-titled non-GAAP
measures, if any, reported by other companies. In addition, other
companies may not publish these or similar measures. Such non-GAAP
measures should be considered as a supplement to, and not as a
substitute for, financial measures prepared in accordance with
GAAP. Sunnova is unable to reconcile projected Adjusted EBITDA,
Adjusted Operating Expense and Adjusted Operating Cash Flow to the
most comparable financial measures calculated in accordance with
GAAP because of fluctuations in interest rates and their impact on
our unrealized and realized interest rate hedge gains or losses.
Sunnova provides a range for the forecasts of Adjusted EBITDA,
Adjusted Operating Expense and Adjusted Operating Cash Flow to
allow for the variability in the timing of cash receipts and
disbursements, customer utilization of our assets, and the impact
on the related reconciling items, many of which interplay with each
other. Therefore, the reconciliation of projected Adjusted EBITDA,
Adjusted Operating Expense and Adjusted Operating Cash Flow to
projected net income (loss), total operating expense, or net cash
provided by (used in) operating activities, as the case may be, is
not available without unreasonable effort.
First Quarter 2020 Financial and Operational Results
Conference Call Information
Sunnova is hosting a conference call for analysts and investors
to discuss its first quarter 2020 results at 8:30 a.m. Eastern
Time, on May 15, 2020. The conference call can be accessed live
over the phone by dialing 866-211-4135, or for international
callers, 647-689-6729. A replay will be available two hours after
the call and can be accessed by dialing 800-585-8367, or for
international callers, 416-621-4642. The conference ID for the live
call and the replay is 3492226. The replay will be available until
May 22, 2020.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by logging onto the
Investor Relations section of Sunnova’s website at
www.sunnova.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally relate to future
events or Sunnova’s future financial or operating performance. In
some cases, you can identify forward-looking statements because
they contain words such as "may," "will," "should," "expects,"
"plans," "anticipates," "going to," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts,"
"potential" or "continue" or the negative of these words or other
similar terms or expressions that concern Sunnova’s expectations,
strategy, priorities, plans or intentions. Forward-looking
statements in this release include, but are not limited to,
statements regarding our service levels, our liquidity and position
and its ability to support our growth, our level of growth, our
ability to handle market disruptions related to the COVID crisis,
the ability of our dealers to quickly pivot to new virtual sales
practices, the ability to achieve our 2020 operational and
financial targets, and references to future rate of customer
additions, Adjusted EBITDA, customer P&I payments from solar
loans and adjusted operating cash flows. Sunnova’s expectations and
beliefs regarding these matters may not materialize, and actual
results in future periods are subject to risks and uncertainties
that could cause actual results to differ materially from those
projected, including risks regarding our ability to forecast our
business due to our limited operating history, our competition,
fluctuations in the solar and home-building markets, our ability to
attract and retain dealers and customers and our dealer and
strategic partner relationships. The forward-looking statements
contained in this release are also subject to other risks and
uncertainties, including those more fully described in Sunnova’s
filings with the Securities and Exchange Commission, including
Sunnova’s annual report on Form 10-K for the year ended December
31, 2019. The forward-looking statements in this release are based
on information available to Sunnova as of the date hereof, and
Sunnova disclaims any obligation to update any forward-looking
statements, except as required by law.
About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is a leading
residential solar and energy storage service provider with
customers across the U.S. and its territories. Sunnova's goal is to
be the source of clean, affordable and reliable energy with a
simple mission: to power energy independence so that homeowners
have the freedom to live life uninterruptedTM.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
amounts and share par values)
As of March 31, 2020
As of December 31,
2019
Assets
Current assets:
Cash
$
73,436
$
83,485
Accounts receivable—trade, net
10,039
10,672
Accounts receivable—other
9,264
6,147
Other current assets, net of allowance of
$567 and $112 as of March 31, 2020 and December 31, 2019,
respectively
187,217
174,016
Total current assets
279,956
274,320
Property and equipment, net
1,884,576
1,745,060
Customer notes receivable, net of
allowance of $11,569 and $979 as of March 31, 2020 and December 31,
2019, respectively
338,514
297,975
Other assets
179,134
169,712
Total assets (1)
$
2,682,180
$
2,487,067
Liabilities, Redeemable
Noncontrolling Interests and Stockholders' Equity
Current liabilities:
Accounts payable
$
59,657
$
36,190
Accrued expenses
15,158
39,544
Current portion of long-term debt
100,716
97,464
Other current liabilities
15,324
21,804
Total current liabilities
190,855
195,002
Long-term debt, net
1,511,555
1,346,419
Other long-term liabilities
145,323
127,406
Total liabilities (1)
1,847,733
1,668,827
Redeemable noncontrolling interests
242,427
172,305
Stockholders' equity:
Common stock, 84,026,290 and 83,980,885
shares issued as of March 31, 2020 and December 31, 2019,
respectively, at $0.0001 par value
8
8
Additional paid-in capital—common
stock
1,010,655
1,007,751
Accumulated deficit
(418,643
)
(361,824
)
Total stockholders' equity
592,020
645,935
Total liabilities, redeemable
noncontrolling interests and stockholders' equity
$
2,682,180
$
2,487,067
(1) The consolidated assets as of March 31, 2020 and December
31, 2019 include $1,038,771 and $790,211, respectively, of assets
of variable interest entities ("VIEs") that can only be used to
settle obligations of the VIEs. These assets include cash of $7,641
and $7,347 as of March 31, 2020 and December 31, 2019,
respectively; accounts receivable—trade, net of $1,989 and $1,460
as of March 31, 2020 and December 31, 2019, respectively; accounts
receivable—other of $42 and $4 as of March 31, 2020 and December
31, 2019, respectively; other current assets of $127,631 and
$47,606 as of March 31, 2020 and December 31, 2019, respectively;
property and equipment, net of $893,123 and $726,415 as of March
31, 2020 and December 31, 2019, respectively; and other assets of
$8,345 and $7,379 as of March 31, 2020 and December 31, 2019,
respectively. The consolidated liabilities as of March 31, 2020 and
December 31, 2019 include $16,046 and $13,440, respectively, of
liabilities of VIEs whose creditors have no recourse to Sunnova
Energy International Inc. These liabilities include accounts
payable of $1,972 and $1,926 as of March 31, 2020 and December 31,
2019, respectively; accrued expenses of $111 and $35 as of March
31, 2020 and December 31, 2019, respectively; other current
liabilities of $1,137 and $612 as of March 31, 2020 and December
31, 2019, respectively; and other long-term liabilities of $12,826
and $10,867 as of March 31, 2020 and December 31, 2019,
respectively.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share
and per share amounts)
Three Months Ended March
31,
2020
2019
Revenue
$
29,829
$
26,715
Operating expense:
Cost of revenue—depreciation
12,986
9,653
Cost of revenue—other
1,043
652
Operations and maintenance
2,219
2,254
General and administrative
27,893
18,681
Other operating income
(6
)
(18
)
Total operating expense, net
44,135
31,222
Operating loss
(14,306
)
(4,507
)
Interest expense, net
67,318
31,661
Interest expense, net—affiliates
—
1,822
Interest income
(4,620
)
(2,494
)
Loss before income tax
(77,004
)
(35,496
)
Income tax
—
—
Net loss
(77,004
)
(35,496
)
Net income (loss) attributable to
redeemable noncontrolling interests
(5,929
)
3,018
Net loss attributable to stockholders
(71,075
)
(38,514
)
Dividends earned on Series A convertible
preferred stock
—
(9,511
)
Dividends earned on Series C convertible
preferred stock
—
(2,692
)
Net loss attributable to common
stockholders—basic and diluted
$
(71,075
)
$
(50,717
)
Net loss per share attributable to common
stockholders—basic and diluted
$
(0.85
)
$
(5.87
)
Weighted average common shares
outstanding—basic and diluted
84,001,151
8,635,527
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended March
31,
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(77,004
)
$
(35,496
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
14,946
11,012
Impairment and loss on disposals, net
331
364
Amortization of deferred financing
costs
3,494
6,324
Amortization of debt discount
4,663
472
Non-cash effect of equity-based
compensation plans
2,690
281
Non-cash payment-in-kind interest on
loan—affiliates
—
1,158
Unrealized loss on derivatives
7,596
7,032
Other non-cash items
3,424
1,000
Changes in components of operating assets
and liabilities:
Accounts receivable
(2,755
)
(1,167
)
Other current assets
4,124
(8,961
)
Other assets
(8,682
)
(3,979
)
Accounts payable
13,768
6,771
Accrued expenses
(17,227
)
(4,455
)
Other current liabilities
(6,446
)
(2,206
)
Other long-term liabilities
(1,034
)
(2,580
)
Net cash used in operating activities
(58,112
)
(24,430
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of property and equipment
(141,231
)
(68,902
)
Payments for investments and customer
notes receivable
(50,448
)
(27,732
)
Proceeds from customer notes
receivable
6,940
3,757
State utility rebates and tax credits
135
111
Other, net
289
86
Net cash used in investing activities
(184,315
)
(92,680
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term debt
583,681
227,930
Payments of long-term debt
(408,695
)
(123,858
)
Payments on notes payable
(2,398
)
—
Payments of deferred financing costs
(10,619
)
(5,281
)
Payments of debt discounts
(229
)
(525
)
Proceeds from issuance of common stock,
net
(41
)
6
Proceeds from issuance of convertible
preferred stock, net
—
(2,253
)
Contributions from redeemable
noncontrolling interests
102,342
18,030
Distributions to redeemable noncontrolling
interests
(1,373
)
(3,652
)
Payments of costs related to redeemable
noncontrolling interests
(1,295
)
(1,035
)
Other, net
(1
)
(11
)
Net cash provided by financing
activities
261,372
109,351
Net increase (decrease) in cash and
restricted cash
18,945
(7,759
)
Cash and restricted cash at beginning of
period
150,291
87,046
Cash and restricted cash at end of
period
169,236
79,287
Restricted cash included in other current
assets
(30,502
)
(430
)
Restricted cash included in other
assets
(65,298
)
(34,999
)
Cash at end of period
$
73,436
$
43,858
Key Financial and Operational
Metrics
Three Months Ended March
31,
2020
2019
(in thousands)
Reconciliation of Net Loss to Adjusted
EBITDA:
Net loss
$
(77,004
)
$
(35,496
)
Interest expense, net
67,318
31,661
Interest expense, net—affiliates
—
1,822
Interest income
(4,620
)
(2,494
)
Depreciation expense
14,946
11,012
Amortization expense
9
5
EBITDA
649
6,510
Non-cash compensation expense (1)
2,690
387
ARO accretion expense
489
313
Financing deal costs
116
119
Natural disaster losses and related
charges, net
31
—
IPO costs
—
739
Amortization of payments to dealers for
exclusivity and other bonus arrangements
351
—
Provision for current expected credit
losses
1,864
—
Adjusted EBITDA
$
6,190
$
8,068
(1) Amount includes non-cash effect of equity-based compensation
plans of $2.7 million and $0.3 million for the three months ended
March 31, 2020 and 2019, respectively, and partial forgiveness of a
loan to an executive officer used to purchase our capital stock of
$0.1 million for the three months ended March 31, 2019.
Three Months Ended March
31,
2020
2019
(in thousands)
Interest income from customer notes
receivable
$
4,372
$
2,328
Principal proceeds from customer notes
receivable, net of related revenue
$
6,378
$
3,429
Three Months Ended March
31,
2020
2019
(in thousands)
Reconciliation of Net Cash Used in
Operating Activities to Adjusted Operating Cash Flow:
Net cash used in operating activities
$
(58,112
)
$
(24,430
)
Principal proceeds from customer notes
receivable
6,940
3,757
Financed insurance payments
(2,398
)
—
Derivative breakage fees from financing
structure changes
31,122
3,428
Distributions to redeemable noncontrolling
interests
(1,373
)
(3,652
)
Payments to dealers for exclusivity and
other bonus arrangements
5,344
2,000
Net inventory and prepaid inventory
(sales) purchases
(1,593
)
2,967
Adjusted Operating Cash Flow
$
(20,070
)
$
(15,930
)
Three Months Ended March
31,
2020
2019
(in thousands, except per
customer data)
Reconciliation of Total Operating
Expense, Net to Adjusted Operating Expense:
Total operating expense, net
$
44,135
$
31,222
Depreciation expense
(14,946
)
(11,012
)
Amortization expense
(9
)
(5
)
Non-cash compensation expense
(2,690
)
(387
)
ARO accretion expense
(489
)
(313
)
Financing deal costs
(116
)
(119
)
Natural disaster losses and related
charges, net
(31
)
—
IPO costs
—
(739
)
Amortization of payments to dealers for
exclusivity and other bonus arrangements
(351
)
—
Provision for current expected credit
losses
(1,864
)
—
Adjusted Operating Expense
$
23,639
$
18,647
Adjusted Operating Expense per
weighted average customer
$
289
$
301
As of March 31, 2020
As of December 31,
2019
Number of customers
85,400
78,600
Three Months Ended March
31,
2020
2019
Weighted average number of customers
(excluding loan agreements)
70,100
55,300
Weighted average number of customers with
loan agreements
11,800
6,700
Weighted average number of customers
81,900
62,000
As of March 31, 2020
As of December 31,
2019
(in millions, except per
customer data)
Estimated gross contracted customer
value
$
2,035
$
1,879
Estimated gross contracted customer value
per customer
$
23,832
$
23,906
Key Terms for Our Key Metrics and Non-GAAP Financial
Measures
Estimated Gross Contracted Customer Value. Estimated
gross contracted customer value as of a specific measurement date
represents the sum of the present value of the remaining estimated
future net cash flows we expect to receive from existing customers
during the initial contract term of our leases and power purchase
agreements ("PPAs"), which are typically 25 years in length, plus
the present value of future net cash flows we expect to receive
from the sale of related solar renewable energy certificates
("SRECs"), either under existing contracts or in future sales, plus
the carrying value of outstanding customer loans on our balance
sheet. From these aggregate estimated initial cash flows, we
subtract the present value of estimated net cash distributions to
redeemable noncontrolling interests and estimated operating,
maintenance and administrative expenses associated with the solar
service agreements. These estimated future cash flows reflect the
projected monthly customer payments over the life of our solar
service agreements and depend on various factors including but not
limited to solar service agreement type, contracted rates, expected
sun hours and the projected production capacity of the solar
equipment installed. For the purpose of calculating this metric, we
discount all future cash flows at 6%.
Number of Customers. We define number of customers to
include each customer that is party to an in-service solar service
agreement. For our leases, PPAs and loan agreements, in-service
means the related solar energy system and, if applicable, energy
storage system, must have met all the requirements to begin
operation and be interconnected to the electrical grid. For our
Sunnova Protect services, in-service means the customer’s solar
energy system must have met the requirements to have the service
activated. We do not include in our number of customers any
customer under a lease, PPA or loan agreement that has reached
mechanical completion but has not received permission to operate
from the local utility or for whom we have terminated the contract
and removed the solar energy system. We also do not include in our
number of customers any customer of our Sunnova Protect services
that has been in default under his or her solar service agreement
in excess of six months. We track the total number of customers as
an indicator of our historical growth and our rate of growth from
period to period.
Weighted Average Number of Customers. We calculate the
weighted average number of customers based on the number of months
a given customer is in-service during a given measurement period.
The weighted average customer count reflects the number of
customers at the beginning of a period, plus the total number of
new customers added in the period adjusted by a factor that
accounts for the partial period nature of those new customers. For
purposes of this calculation, we assume all new customers added
during a month were added in the middle of that month. We track the
weighted average customer count in order to accurately reflect the
contribution of the appropriate number of customers to key
financial metrics over the measurement period.
Definitions of Non-GAAP Measures
Adjusted EBITDA. We define Adjusted EBITDA as net income
(loss) plus net interest expense, depreciation and amortization
expense, income tax expense, financing deal costs, natural disaster
losses and related charges, net, amortization of payments to
dealers for exclusivity and other bonus arrangements, legal
settlements and excluding the effect of certain non-recurring items
we do not consider to be indicative of our ongoing operating
performance such as, but not limited to, costs of our initial
public offering ("IPO"), losses on unenforceable contracts, losses
on extinguishment of long-term debt, realized and unrealized gains
and losses on fair value option instruments and other non-cash
items such as non-cash compensation expense, asset retirement
obligation ("ARO") accretion expense and provision for current
expected credit losses.
Adjusted Operating Cash Flow. We define Adjusted
Operating Cash Flow as net cash used in operating activities plus
principal proceeds from customer notes receivable, financed
insurance payments and distributions to redeemable noncontrolling
interests less derivative breakage fees from financing structure
changes, payments to dealers for exclusivity and other bonus
arrangements, net inventory and prepaid inventory (sales) purchases
and payments of non-capitalized costs related to our IPO.
Adjusted Operating Expense. We define Adjusted Operating
Expense as total operating expense less depreciation and
amortization expense, financing deal costs, natural disaster losses
and related charges, net, amortization of payments to dealers for
exclusivity and other bonus arrangements, legal settlements and
excluding the effect of certain non-recurring items we do not
consider to be indicative of our ongoing operating performance such
as, but not limited to, costs of our IPO, losses on unenforceable
contracts and other non-cash items such as non-cash compensation
expense, ARO accretion expense and provisions for current expected
credit losses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200514005603/en/
Rodney McMahan - Investors Kelsey Hultberg - Media
IR@sunnova.com 877-770-5211
Sunnova Energy (NYSE:NOVA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Sunnova Energy (NYSE:NOVA)
Historical Stock Chart
From Mar 2023 to Mar 2024