First Quarter 2021 and Recent Highlights
- Added approximately 8,900 customers in the first quarter,
bringing total customer count to 116,400 as of March 31, 2021;
- Reaffirmed full-year 2021 guidance;
- Completed the acquisition of Lennar's residential solar
platform SunStreet; and
- Published Inaugural Environmental, Social, and Governance (ESG)
Report, detailing the company's ESG strategy and performance.
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, 2021.
"Sunnova's strong first quarter results and continued rapid
growth reiterates the power of our business model and
capitalization strategy," said William J. (John) Berger, Chief
Executive Officer of Sunnova. "Our rapid growth has been made
possible through the value of the Sunnova Network, whereby software
and services enable aggregation capabilities to create additional
value for our customers, dealers and equipment partners.
"Thanks to a solid start to the year, the quick closing of the
SunStreet acquisition, and our continued strong customer growth, we
are well-positioned for an exciting year ahead."
Mr. Berger added, "At Sunnova, sustainability is not only a core
value, but a top priority. From driving innovation in residential
solar and storage services to inspiring positive social change in
our communities, we are committed to sustainable business practices
and to advancing corporate responsibility within the solar
industry. To document this commitment, we recently released our
inaugural ESG report that reaffirms our commitment to serving all
stakeholders. With a local focus and a global vision, Sunnova aims
to create a reliable energy future that will transform the world
for the better."
First Quarter 2021 Results
Revenue increased to $41.3 million, or by $11.4 million, for the
three months ended March 31, 2021 compared to the three months
ended March 31, 2020. This increase was primarily the result of an
increase in the number of customers served.
Total operating expense, net increased to $64.6 million, or by
$20.4 million, for the three months ended March 31, 2021 compared
to the three months ended March 31, 2020. This increase was
primarily the result of an increase in the number of customers
served, greater depreciation expense, and higher general and
administration expense. General and administration expense is
higher for the three months ended March 31, 2021 compared to the
three months ended March 31, 2020 due to $4.0 million in SunStreet
acquisition costs and higher payroll and employee related expense
due to an increase in non-cash equity compensation and the hiring
of personnel in commercial operations to support growth.
Adjusted Operating Expense increased to $28.5 million, or by
$4.9 million, for the three months ended March 31, 2021 compared to
the three months ended March 31, 2020. This increase was primarily
the result of an increase in the number of customers served.
Sunnova incurred a net loss of $24.1 million for the three
months ended March 31, 2021 compared to a net loss of $77.0 million
for the three months ended March 31, 2020. This smaller net loss
was primarily the result of lower net interest expense which was
driven by decreases in realized losses on interest rate swaps of
$31.3 million due to the termination of certain debt facilities in
2020, unrealized losses on interest rate swaps of $26.3 million and
debt discount amortization of $2.9 million. These decreases were
partially offset by an increase in interest expense of $2.5 million
due to an increase in the principal debt balance after entering
into new financing arrangements.
Adjusted EBITDA was $12.8 million for the three months ended
March 31, 2021 compared to $6.2 million for the three months ended
March 31, 2020, an increase of $6.6 million. Customer principal
(net of amounts recorded in revenue) and interest payments received
from solar loans increased to $12.3 million and $7.1 million,
respectively, for the three months ended March 31, 2021, or by $5.9
million and $2.7 million, respectively, compared to the three
months ended March 31, 2020. This overall increase was primarily
driven by customer growth increasing at a faster rate than
expenses.
Net cash used in operating activities was $49.9 million for the
three months ended March 31, 2021 compared to $58.1 million for the
three months ended March 31, 2020. This decrease was primarily the
result of a decrease in payments to dealers for exclusivity and
other bonus arrangements with net outflows of $3.7 million in 2021
compared to $5.3 million in 2020.
Adjusted Operating Cash Flow was $(5.4) million for the three
months ended March 31, 2021 compared to $(20.1) million for the
three months ended March 31, 2020. This increase was primarily the
result of customer growth increasing at a faster rate than cash
expenditures.
Liquidity & Capital Resources
As of March 31, 2021, Sunnova had total cash of $263.5 million,
including restricted and unrestricted cash.
2021 Guidance
Management reaffirms existing full-year 2021 guidance of:
- Customer additions of 55,000 - 58,000;
- Adjusted EBITDA of $80 million - $85 million;
- Customer principal payments received from solar loans, net of
amounts recorded in revenue of $57 million - $63 million;
- Customer interest payments received from solar loans of $28
million - $34 million;
- Adjusted Operating Cash Flow of $20 million - $30 million;
and
- Recurring Operating Cash Flow of $(5) million - $5
million.
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, Adjusted Operating Cash Flow, and Recurring
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 and Recurring Operating Cash Flow as liquidity
measures and believe Adjusted Operating Cash Flow and Recurring
Operating Cash Flow are supplemental financial measures 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 and Recurring Operating Cash Flow to evaluate
our liquidity and ability to service our contractual obligations.
Further, we believe that Recurring Operating Cash Flow allows
investors to analyze our ability to service the debt and customer
obligations associated with our in-service assets. However,
Adjusted Operating Cash Flow and Recurring Operating Cash Flow have
limitations as analytical tools because they do 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, Adjusted
Operating Cash Flow, and Recurring 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, Adjusted Operating Cash Flow, and
Recurring 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, Adjusted
Operating Cash Flow, and Recurring 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 2021 Financial and Operational Results
Conference Call Information
Sunnova is hosting a conference call for analysts and investors
to discuss its first quarter 2021 results at 8:30 a.m. Eastern
Time, on April 29, 2021. To register for this conference call,
please use the link
http://www.directeventreg.com/registration/event/7927159.
After registering, a confirmation will be sent through email,
including dial-in details and unique conference call codes for
entry. To ensure you are connected for the full call we suggest
registering at a minimum 10 minutes before the start of the call. 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
7927159. The replay will be available until June 5, 2021.
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 level of growth, the power of our business
model and capitalization strategy, the ability to achieve our 2021
operational and financial targets, that we are well-positioned for
an exciting year ahead and references to Adjusted EBITDA, customer
P&I payments from solar loans, Recurring Operating Cash Flow
and Adjusted Operating Cash Flow. 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, the effects of the
coronavirus pandemic on our business and operations, results of
operations and financial position, our competition, fluctuations in
the solar and home-building markets, availability of capital, our
ability to attract and retain dealers and customers and manage our
dealer and strategic partner relationships, the ability to
successfully integrate the SunStreet acquisition; the ability of
Sunnova to implement its plans, forecasts and other expectations
with respect to SunStreet's business and the realize expected
benefits of the acquisition. 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, 2020. 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 uninterrupted®.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
amounts and share par values)
As of March 31, 2021
As of December 31,
2020
Assets
Current assets:
Cash
$
150,892
$
209,859
Accounts receivable—trade, net
11,802
10,243
Accounts receivable—other
21,536
21,378
Other current assets, net of allowance of
$837 and $707 as of March 31, 2021 and December 31, 2020,
respectively
192,580
215,175
Total current assets
376,810
456,655
Property and equipment, net
2,446,103
2,323,169
Customer notes receivable, net of
allowance of $20,082 and $16,961 as of March 31, 2021 and December
31, 2020, respectively
622,901
513,386
Other assets
310,794
294,372
Total assets (1)
$
3,756,608
$
3,587,582
Liabilities, Redeemable
Noncontrolling Interests and Equity
Current liabilities:
Accounts payable
$
33,903
$
39,908
Accrued expenses
44,309
34,049
Current portion of long-term debt
116,205
110,883
Other current liabilities
22,932
26,013
Total current liabilities
217,349
210,853
Long-term debt, net
1,994,734
1,924,653
Other long-term liabilities
183,618
171,395
Total liabilities (1)
2,395,701
2,306,901
Redeemable noncontrolling interests
137,122
136,124
Stockholders' equity:
Common stock, 108,553,802 and 100,412,036
shares issued as of March 31, 2021 and December 31, 2020,
respectively, at $0.0001 par value
11
10
Additional paid-in capital—common
stock
1,547,375
1,482,716
Accumulated deficit
(524,511
)
(530,995
)
Total stockholders' equity
1,022,875
951,731
Noncontrolling interests
200,910
192,826
Total equity
1,223,785
1,144,557
Total liabilities, redeemable
noncontrolling interests and equity
$
3,756,608
$
3,587,582
(1) The consolidated assets as of March 31, 2021 and December
31, 2020 include $1,510,026 and $1,471,796, respectively, of assets
of variable interest entities ("VIEs") that can only be used to
settle obligations of the VIEs. These assets include cash of
$15,532 and $13,407 as of March 31, 2021 and December 31, 2020,
respectively; accounts receivable—trade, net of $3,822 and $2,953
as of March 31, 2021 and December 31, 2020, respectively; accounts
receivable—other of $813 and $583 as of March 31, 2021 and December
31, 2020, respectively; other current assets of $121,832 and
$182,646 as of March 31, 2021 and December 31, 2020, respectively;
property and equipment, net of $1,349,815 and $1,257,953 as of
March 31, 2021 and December 31, 2020, respectively; and other
assets of $18,212 and $14,254 as of March 31, 2021 and December 31,
2020, respectively. The consolidated liabilities as of March 31,
2021 and December 31, 2020 include $35,959 and $32,345,
respectively, of liabilities of VIEs whose creditors have no
recourse to Sunnova Energy International Inc. These liabilities
include accounts payable of $3,303 and $2,744 as of March 31, 2021
and December 31, 2020, respectively; accrued expenses of $886 and
$827 as of March 31, 2021 and December 31, 2020, respectively;
other current liabilities of $3,740 and $3,284 as of March 31, 2021
and December 31, 2020, respectively; and other long-term
liabilities of $28,030 and $25,490 as of March 31, 2021 and
December 31, 2020, respectively.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share
and per share amounts)
Three Months Ended March
31,
2021
2020
Revenue
$
41,276
$
29,829
Operating expense:
Cost of revenue—depreciation
17,408
12,986
Cost of revenue—other
1,234
1,043
Operations and maintenance
3,620
2,219
General and administrative
42,320
27,893
Other operating income
—
(6
)
Total operating expense, net
64,582
44,135
Operating loss
(23,306
)
(14,306
)
Interest expense, net
8,051
67,318
Interest income
(7,180
)
(4,620
)
Other income
(113
)
—
Loss before income tax
(24,064
)
(77,004
)
Income tax
—
—
Net loss
(24,064
)
(77,004
)
Net income (loss) attributable to
redeemable noncontrolling interests and noncontrolling
interests
8,919
(5,929
)
Net loss attributable to stockholders
$
(32,983
)
$
(71,075
)
Net loss per share attributable to common
stockholders—basic and diluted
$
(0.31
)
$
(0.85
)
Weighted average common shares
outstanding—basic and diluted
106,359,220
84,001,151
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended March
31,
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(24,064
)
$
(77,004
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
19,543
14,946
Impairment and loss on disposals, net
326
331
Amortization of deferred financing
costs
2,164
3,494
Amortization of debt discount
1,720
4,663
Non-cash effect of equity-based
compensation plans
7,924
2,690
Unrealized (gain) loss on derivatives
(18,705
)
7,596
Unrealized gain on fair value option
instruments
(113
)
—
Other non-cash items
(3,644
)
3,424
Changes in components of operating assets
and liabilities:
Accounts receivable
(1,771
)
(2,755
)
Other current assets
(26,808
)
4,124
Other assets
(7,501
)
(8,682
)
Accounts payable
(756
)
13,768
Accrued expenses
10,626
(17,227
)
Other current liabilities
(6,869
)
(6,446
)
Other long-term liabilities
(1,980
)
(1,034
)
Net cash used in operating activities
(49,908
)
(58,112
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of property and equipment
(117,459
)
(141,231
)
Payments for investments and customer
notes receivable
(122,532
)
(50,448
)
Proceeds from customer notes
receivable
13,459
6,940
State utility rebates and tax credits
111
135
Other, net
208
289
Net cash used in investing activities
(226,213
)
(184,315
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term debt
311,280
583,681
Payments of long-term debt
(174,800
)
(408,695
)
Payments on notes payable
(2,254
)
(2,398
)
Payments of deferred financing costs
(6,273
)
(10,619
)
Payments of debt discounts
(20
)
(229
)
Proceeds from issuance of common stock,
net
(1,037
)
(41
)
Contributions from redeemable
noncontrolling interests and noncontrolling interests
40,802
102,342
Distributions to redeemable noncontrolling
interests and noncontrolling interests
(2,833
)
(1,373
)
Payments of costs related to redeemable
noncontrolling interests and noncontrolling interests
(3,146
)
(1,295
)
Other, net
(28
)
(1
)
Net cash provided by financing
activities
161,691
261,372
Net increase (decrease) in cash and
restricted cash
(114,430
)
18,945
Cash and restricted cash at beginning of
period
377,893
150,291
Cash and restricted cash at end of
period
263,463
169,236
Restricted cash included in other current
assets
(43,603
)
(30,502
)
Restricted cash included in other
assets
(68,968
)
(65,298
)
Cash at end of period
$
150,892
$
73,436
Key Financial and Operational
Metrics
Three Months Ended March
31,
2021
2020
(in thousands)
Reconciliation of Net Loss to Adjusted
EBITDA:
Net loss
$
(24,064
)
$
(77,004
)
Interest expense, net
8,051
67,318
Interest income
(7,180
)
(4,620
)
Depreciation expense
19,543
14,946
Amortization expense
32
9
EBITDA
(3,618
)
649
Non-cash compensation expense
7,924
2,690
ARO accretion expense
652
489
Financing deal costs
1
116
Natural disaster losses and related
charges, net
—
31
Acquisition costs
4,010
—
Unrealized gain on fair value option
instruments
(113
)
—
Amortization of payments to dealers for
exclusivity and other bonus arrangements
614
351
Provision for current expected credit
losses
3,313
1,864
Adjusted EBITDA
$
12,783
$
6,190
Three Months Ended
March 31,
2021
2020
(in thousands)
Interest income from customer notes
receivable
$
7,097
$
4,372
Principal proceeds from customer notes
receivable, net of related revenue
$
12,302
$
6,378
Three Months Ended March
31,
2021
2020
(in thousands)
Reconciliation of Net Cash Used in
Operating Activities to Adjusted Operating Cash Flow:
Net cash used in operating activities
$
(49,908
)
$
(58,112
)
Principal proceeds from customer notes
receivable
13,459
6,940
Financed insurance payments
(2,254
)
(2,398
)
Derivative origination and breakage fees
from financing structure changes
8,936
31,122
Distributions to redeemable noncontrolling
interests and noncontrolling interests
(2,833
)
(1,373
)
Payments to dealers for exclusivity and
other bonus arrangements
3,665
5,344
Net inventory and prepaid inventory
(sales) purchases
20,854
(1,593
)
Payments of non-capitalized costs related
to acquisitions
2,051
—
Payments of non-capitalized costs related
to equity offerings
609
—
Adjusted Operating Cash Flow
$
(5,421
)
$
(20,070
)
Three Months Ended March
31,
2021
2020
(in thousands, except per
system data)
Reconciliation of Total Operating
Expense, Net to Adjusted Operating Expense:
Total operating expense, net
$
64,582
$
44,135
Depreciation expense
(19,543
)
(14,946
)
Amortization expense
(32
)
(9
)
Non-cash compensation expense
(7,924
)
(2,690
)
ARO accretion expense
(652
)
(489
)
Financing deal costs
(1
)
(116
)
Natural disaster losses and related
charges, net
—
(31
)
Acquisition costs
(4,010
)
—
Amortization of payments to dealers for
exclusivity and other bonus arrangements
(614
)
(351
)
Provision for current expected credit
losses
(3,313
)
(1,864
)
Adjusted Operating Expense
$
28,493
$
23,639
Adjusted Operating Expense per weighted
average system
$
253
$
289
As of
March 31, 2021
As of
December 31, 2020
Number of customers
116,400
107,500
Three Months Ended March
31,
2021
2020
Weighted average number of systems
(excluding loan agreements)
91,800
70,100
Weighted average number of systems with
loan agreements
20,800
11,800
Weighted average number of systems
112,600
81,900
As of March 31, 2021
As of December 31,
2020
(in millions, except per
customer data)
Estimated gross contracted customer
value
$
3,264
$
2,997
Estimated gross contracted customer value
per customer
$
28,048
$
27,887
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 cash flows we expect to receive from energy services programs
such as grid services, 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
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 4%.
Number of Customers. We define number of customers to
include each unique individual possessing an in-service solar
energy system with respect to which Sunnova is obligated to perform
a service under a written agreement between Sunnova and the
individual or between Sunnova and a third party. For all solar
energy systems installed by us, 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. 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 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 Systems. We calculate the
weighted average number of systems based on the number of months a
customer and any additional service obligation related to a solar
energy system is in-service during a given measurement period. The
weighted average number of systems reflects the number of systems
at the beginning of a period, plus the total number of new systems
added in the period adjusted by a factor that accounts for the
partial period nature of those new systems. For purposes of this
calculation, we assume all new systems added during a month were
added in the middle of that month. The number of systems for any
end of period will exceed the number of customers, as defined
above, for the same end of period as we are also including the
additional services and/or contracts a customer or third party
executed for the additional work for the same residence. We track
the weighted average system 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"), acquisition costs, 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, provision for
current expected credit losses and non-cash inventory
impairment.
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 and noncontrolling interests less derivative origination
and breakage fees from financing structure changes, payments to
dealers for exclusivity and other bonus arrangements, net inventory
and prepaid inventory (sales) purchases, payments of
non-capitalized costs related to our IPO, acquisitions and equity
offerings and direct sales costs to the extent the related solar
energy system is financed through a loan.
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, acquisition costs, losses
on unenforceable contracts and other non-cash items such as
non-cash compensation expense, ARO accretion expense, provision for
current expected credit losses and non-cash inventory
impairment.
Recurring Operating Cash Flow. We define Recurring
Operating Cash Flow as Adjusted Operating Cash Flow less principal
payments on our securitizations and corporate capital expenditures,
plus sales-related and sales-allocated cash operating expenses and
interest expense from our credit warehouses and inventory
facility.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428005976/en/
Investor Relations: Rodney McMahan, Vice President Investor
Relations IR@sunnova.com 877-770-5211
Media: Alina Eprimian, Media Relations Manager
Alina.Eprimian@sunnova.com
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