Third Quarter 2023 and Recent Highlights
- Added over 37,000 customers in the third quarter; bringing
total customer count to 386,200 as of September 30, 2023;
- Took several actions to increase corporate liquidity and
thereby lowered our forecasted 2024 corporate capital need from
$500 million to $0;
- Priced our first U.S. Department of Energy guaranteed loan
securitization resulting in the residential solar industry's first
AAA rated securitization;
- Entered into a $145 million tax credit transfer transaction
that involves the sale of investment tax credits to a tax credit
buyer with $14.4 million in sales completed as of September 30,
2023; and
- Initiated 2024 full year guidance of $800 million at the
midpoint for Adjusted EBITDA together with the interest income and
principal proceeds from customer notes receivable.
Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a
leading energy services company, today announced financial results
for the third quarter ended September 30, 2023.
"Maintaining a strong focus on liquidity, increasing operating
leverage and profitability, and growing cash flow remain the top
objectives of management," said William J. (John) Berger, the
founder and CEO of Sunnova. "As we navigate this higher interest
rate and lower liquidity environment, it's essential to recognize
the unique opportunity that arises from the convergence of
declining solar equipment prices and the steady uptick in utility
rates, creating a distinct wedge of value for our customers. This
same wedge of value enables us to continue to increase our pricing
power, which is reflected in our increased fully burdened unlevered
return.
"In the third quarter, Sunnova entered into a tax credit
transfer transaction involving the sale of up to $145 million in
investment tax credits. We are proud to be among the pioneers
embracing the newly introduced transferred credit program under the
Inflation Reduction Act. Sunnova is dedicated to shaping and
supporting the growth of this nascent market, reaffirming our
position as a market leader in our industry.
"We have undertaken a multitude of initiatives to better
position Sunnova for a prolonged period of challenging
macroeconomic conditions, including a concerted effort to reduce
working capital demands, stringently managing our operating
expenses, reducing our future corporate capital needs, and
integrating advanced software and artificial intelligence
applications to maximize operational efficiency. This comprehensive
approach is geared towards improving cash flow, increasing overall
profitability, and fortifying our liquidity position, all of which
we are confident will establish a solid foundation for our enduring
success in this elevated interest rate environment."
Third Quarter 2023 Results
Revenue increased to $198.4 million, or by $49.0 million, for
the three months ended September 30, 2023 compared to the three
months ended September 30, 2022. This increase was primarily the
result of an increased number of solar energy systems in service,
higher inventory sales revenue from the sale of inventory to our
dealers or other parties, and an increase in service revenue
primarily due to an increased focus on direct sales of additional
services to existing customers.
Revenue increased to $526.5 million, or by $164.4 million, for
the nine months ended September 30, 2023 compared to the nine
months ended September 30, 2022. This increase was primarily the
result of an increased number of solar energy systems in service,
an increase in service revenue primarily due to an increased focus
on direct sales of additional services to existing customers, and
higher inventory sales revenue from the sale of inventory to our
dealers or other parties, which began in April 2022.
Total operating expense, net increased to $236.6 million, or by
$59.5 million for the three months ended September 30, 2023
compared to the three months ended September 30, 2022. This
increase was primarily the result of an increased number of solar
energy systems in service, higher general and administrative
expense, higher cost of revenue - inventory sales from the sale of
inventory to our dealers and other parties, and higher cost of
revenue - other due to an increased focus on direct sales of
additional services to existing customers. This was partially
offset by a decrease in other operating expense due to changes in
the fair value of certain financial instruments and contingent
consideration.
Total operating expense, net increased to $673.2 million, or by
$246.5 million for the nine months ended September 30, 2023
compared to the nine months ended September 30, 2022. This increase
was primarily the result of an increased number of solar energy
systems in service, higher general and administrative expense,
higher cost of revenue - other due to an increased focus on direct
sales of additional services to existing customers, and an increase
in cost of revenue - inventory sales from the sale of inventory to
our dealers or other parties, which began in April 2022.
Adjusted Operating Expense increased to $96.4 million, or by
$42.7 million, for the three months ended September 30, 2023
compared to the three months ended September 30, 2022. This
increase was primarily the result of an increased number of solar
energy systems in service and higher general and administrative
expense.
Adjusted Operating Expense increased to $261.6 million, or by
$111.0 million, for the nine months ended September 30, 2023
compared to the nine months ended September 30, 2022. This increase
was primarily the result of an increased number of solar energy
systems in service and higher general and administrative
expense.
Sunnova incurred a net loss of $56.5 million for the three
months ended September 30, 2023 compared to a net loss of $32.3
million for the three months ended September 30, 2022. This higher
net loss was primarily the result of an increase in interest
expense, net of $36.8 million and higher general and administrative
expense. This was partially offset by an increase in interest
income of $14.4 million due to our larger customer loan portfolio,
a decrease in other operating expense due to changes in the fair
value of certain financial instruments and contingent
consideration, and an increase in income tax benefit primarily due
to investment tax credit sales that resulted in an income tax
benefit offset by an increase in taxable income related to tax
gains recognized on the sale of solar energy systems and energy
storage systems located in separate tax-reporting
jurisdictions.
Sunnova incurred a net loss of $267.6 million for the nine
months ended September 30, 2023 compared to a net loss of $68.3
million for the nine months ended September 30, 2022. This higher
net loss was primarily the result of an increase in interest
expense, net of $155.8 million and higher general and
administrative expense. This was partially offset by an increase in
interest income of $41.2 million due to our larger customer loan
portfolio and an increase in income tax benefit primarily due to
investment tax credit sales that resulted in an income tax benefit
offset by an increase in taxable income related to tax gains
recognized on the sale of solar energy systems and energy storage
systems located in separate tax-reporting jurisdictions.
Adjusted EBITDA was relatively unchanged at $40.4 million for
the three months ended September 30, 2023 compared to $41.3 million
for the three months ended September 30, 2022.
Adjusted EBITDA was $83.0 million for the nine months ended
September 30, 2023 compared to $93.5 million for the nine months
ended September 30, 2022. This decrease was primarily the result of
an increase in spending related to higher than expected growth.
Principal proceeds from customer notes receivable (net of
amounts recorded in revenue) and proceeds from investments in solar
receivables was $40.7 million for the three months ended September
30, 2023 compared to $26.1 million for the three months ended
September 30, 2022. Principal proceeds from customer notes
receivable (net of amounts recorded in revenue) and proceeds from
investments in solar receivables was $111.6 million for the nine
months ended September 30, 2023 compared to $76.9 million for the
nine months ended September 30, 2022. These increases were due to
our larger customer loan portfolio.
Interest income from customer notes receivable was $26.8 million
for the three months ended September 30, 2023 compared to $15.1
million for the three months ended September 30, 2022. Interest
income from customer notes receivable was $69.9 million for the
nine months ended September 30, 2023 compared to $39.1 million for
the nine months ended September 30, 2022. These increases were due
to our larger customer loan portfolio.
Liquidity & Capital Resources
As of September 30, 2023, Sunnova had total cash of $725.1
million, including restricted and unrestricted cash.
2023 Full Year Guidance
Sunnova management is reaffirming its 2023 full year guidance
for customer additions, Adjusted EBITDA, interest income from
customer notes receivable, and principal proceeds from customer
notes receivable, net of amounts recorded in revenue, and proceeds
from investments in solar receivables.
- Customer additions between 135,000 and 145,000 reaffirmed;
- Adjusted EBITDA between $235 million and $255 million
reaffirmed;
- Interest income from customer notes receivable between $110
million and $120 million reaffirmed; and
- Principal proceeds from customer notes receivable, net of
amounts recorded in revenue, and proceeds from investments in solar
receivables between $150 million and $190 million reaffirmed.
2024 Full Year Guidance
Sunnova management initiates its 2024 full year guidance.
- Customer additions between 185,000 and 195,000;
- Adjusted EBITDA between $350 million and $450 million;
- Interest income from customer notes receivable between $150
million and $190 million; and
- Principal proceeds from customer notes receivable, net of
amounts recorded in revenue, and proceeds from investments in solar
receivables between $210 million and $250 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 and Adjusted
Operating Expense, 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 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 and Adjusted Operating Expense 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 and
Adjusted Operating Expense 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 and Adjusted Operating Expense to
projected net income (loss) and total operating expense, as the
case may be, is not available without unreasonable effort.
Third Quarter Conference Call Information
Sunnova is hosting a conference call for analysts and investors
to discuss its third quarter 2023 results at 8:00 a.m. Eastern
Time, on October 26, 2023. The conference call can be accessed live
over the phone by dialing 833-470-1428, or for international
callers, 929-526-1599. The access code for the live call is
663505.
A replay will be available two hours after the call and can be
accessed by dialing 866-813-9403, or for international callers, +44
204-525-0658. The access code for the replay is 520385. The replay
will be available until November 2, 2023.
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.
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, customer value
propositions, technological developments, service levels, the
ability to achieve our 2023 operational and financial targets,
operating performance, including its outlook and guidance, demand
for Sunnova’s products and services, future financing and ability
to raise capital therefrom, and references to Adjusted EBITDA and
customer P&I payments from solar loans. 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, supply chain
uncertainties, results of operations and financial position, our
competition, changes in regulations applicable to our business,
fluctuations in the solar and home-building markets, availability
of capital, and our ability to attract and retain dealers and
customers and manage 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, 2022 and
subsequent quarterly reports on Form 10-Q. 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 an
industry-leading energy services company focused on making clean
energy more accessible, reliable, and affordable for homeowners and
businesses. Through its adaptive energy platform, Sunnova provides
a better energy service at a better price to deliver its mission of
powering energy independence. For more information, visit
www.sunnova.com.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
amounts and share par values)
As of
September 30, 2023
As of
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
467,902
$
360,257
Accounts receivable—trade, net
40,170
24,435
Accounts receivable—other
101,907
212,397
Other current assets, net of allowance of
$4,276 and $3,250 as of September 30, 2023 and December 31, 2022,
respectively
383,961
351,300
Total current assets
993,940
948,389
Property and equipment, net
5,119,027
3,784,801
Customer notes receivable, net of
allowance of $106,385 and $77,998 as of September 30, 2023 and
December 31, 2022, respectively
3,531,083
2,466,149
Intangible assets, net
141,175
162,512
Goodwill
13,150
13,150
Other assets
986,930
961,891
Total assets (1)
$
10,785,305
$
8,336,892
Liabilities, Redeemable
Noncontrolling Interests and Equity
Current liabilities:
Accounts payable
$
194,551
$
116,136
Accrued expenses
107,140
139,873
Current portion of long-term debt
470,133
214,431
Other current liabilities
96,949
71,506
Total current liabilities
868,773
541,946
Long-term debt, net
6,710,734
5,194,755
Other long-term liabilities
1,003,922
712,741
Total liabilities (1)
8,583,429
6,449,442
Redeemable noncontrolling interests
124,082
165,737
Stockholders' equity:
Common stock, 122,405,788 and 114,939,079
shares issued as of September 30, 2023 and December 31, 2022,
respectively, at $0.0001 par value
12
11
Additional paid-in capital—common
stock
1,749,419
1,637,847
Accumulated deficit
(191,513
)
(364,782
)
Total stockholders' equity
1,557,918
1,273,076
Noncontrolling interests
519,876
448,637
Total equity
2,077,794
1,721,713
Total liabilities, redeemable
noncontrolling interests and equity
$
10,785,305
$
8,336,892
(1) The consolidated assets as of
September 30, 2023 and December 31, 2022 include $4,712,182 and
$3,201,271, respectively, of assets of variable interest entities
("VIEs") that can only be used to settle obligations of the VIEs.
These assets include cash of $51,260 and $40,382 as of September
30, 2023 and December 31, 2022, respectively; accounts
receivable—trade, net of $13,789 and $8,542 as of September 30,
2023 and December 31, 2022, respectively; accounts receivable—other
of $1,198 and $810 as of September 30, 2023 and December 31, 2022,
respectively; other current assets of $805,774 and $422,364 as of
September 30, 2023 and December 31, 2022, respectively; property
and equipment, net of $3,778,707 and $2,680,587 as of September 30,
2023 and December 31, 2022, respectively; and other assets of
$61,454 and $48,586 as of September 30, 2023 and December 31, 2022,
respectively. The consolidated liabilities as of September 30, 2023
and December 31, 2022 include $88,275 and $66,441, respectively, of
liabilities of VIEs whose creditors have no recourse to Sunnova
Energy International Inc. These liabilities include accounts
payable of $17,502 and $9,015 as of September 30, 2023 and December
31, 2022, respectively; accrued expenses of $77 and $287 as of
September 30, 2023 and December 31, 2022, respectively; other
current liabilities of $6,112 and $4,420 as of September 30, 2023
and December 31, 2022, respectively; and other long-term
liabilities of $64,584 and $52,719 as of September 30, 2023 and
December 31, 2022, respectively.
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share
and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue
$
198,398
$
149,364
$
526,471
$
362,098
Operating expense:
Cost of revenue—depreciation
33,743
24,663
92,262
69,935
Cost of revenue—inventory sales
50,694
40,917
129,016
89,884
Cost of revenue—other
30,981
15,567
81,599
32,974
Operations and maintenance
18,702
9,774
59,306
23,787
General and administrative
111,545
75,897
314,190
214,362
Other operating (income) expense
(9,051
)
10,267
(3,134
)
(4,186
)
Total operating expense, net
236,614
177,085
673,239
426,756
Operating loss
(38,216
)
(27,721
)
(146,768
)
(64,658
)
Interest expense, net
57,601
20,824
200,155
44,380
Interest income
(30,590
)
(16,185
)
(81,670
)
(40,428
)
Other (income) expense
561
(12
)
3,969
(327
)
Loss before income tax
(65,788
)
(32,348
)
(269,222
)
(68,283
)
Income tax benefit
(9,325
)
—
(1,632
)
—
Net loss
(56,463
)
(32,348
)
(267,590
)
(68,283
)
Net income (loss) attributable to
redeemable noncontrolling interests and noncontrolling
interests
6,684
32,195
(37,269
)
72,455
Net loss attributable to stockholders
$
(63,147
)
$
(64,543
)
$
(230,321
)
$
(140,738
)
Net loss per share attributable to
stockholders—basic and diluted
$
(0.53
)
$
(0.56
)
$
(1.97
)
$
(1.23
)
Weighted average common shares
outstanding—basic and diluted
119,554,008
114,816,879
116,971,318
114,293,251
SUNNOVA ENERGY INTERNATIONAL
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(267,590
)
$
(68,283
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
107,957
78,401
Impairment and loss on disposals, net
24,930
2,971
Amortization of intangible assets
21,324
21,333
Amortization of deferred financing
costs
17,007
9,690
Amortization of debt discount
12,971
6,273
Non-cash effect of equity-based
compensation plans
19,812
20,059
Non-cash direct sales revenue
(43,034
)
(4,448
)
Provision for current expected credit
losses and other bad debt expense
35,085
28,773
Unrealized gain on derivatives
(10,208
)
(27,580
)
Unrealized (gain) loss on fair value
instruments and equity securities
846
(4,136
)
Other non-cash items
2,633
(38,412
)
Changes in components of operating assets
and liabilities:
Accounts receivable
99,753
(100,537
)
Other current assets
(77,976
)
(139,946
)
Other assets
(95,321
)
(84,142
)
Accounts payable
(6,711
)
1,403
Accrued expenses
(35,193
)
41,571
Other current liabilities
9,604
(4,243
)
Other long-term liabilities
(10,680
)
(4,542
)
Net cash used in operating activities
(194,791
)
(265,795
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of property and equipment
(1,315,192
)
(637,556
)
Payments for investments and customer
notes receivable
(716,972
)
(902,773
)
Proceeds from customer notes
receivable
126,980
79,870
Proceeds from investments in solar
receivables
8,708
9,388
Other, net
4,707
(282
)
Net cash used in investing activities
(1,891,769
)
(1,451,353
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term debt
2,859,489
2,308,033
Payments of long-term debt
(1,090,338
)
(571,261
)
Payments on notes payable
(4,356
)
—
Payments of deferred financing costs
(60,336
)
(24,748
)
Purchase of capped call transactions
—
(48,420
)
Proceeds from issuance of common stock,
net
81,329
(3,345
)
Contributions from redeemable
noncontrolling interests and noncontrolling interests
520,611
236,661
Distributions to redeemable noncontrolling
interests and noncontrolling interests
(30,159
)
(20,847
)
Payments of costs related to redeemable
noncontrolling interests and noncontrolling interests
(8,475
)
(10,380
)
Proceeds from sales of investment tax
credits for redeemable noncontrolling interests and noncontrolling
interests
4,950
—
Other, net
(6,662
)
(601
)
Net cash provided by financing
activities
2,266,053
1,865,092
Net increase in cash, cash equivalents and
restricted cash
179,493
147,944
Cash, cash equivalents and restricted cash
at beginning of period
545,574
391,897
Cash, cash equivalents and restricted cash
at end of period
725,067
539,841
Restricted cash included in other current
assets
(30,307
)
(14,584
)
Restricted cash included in other
assets
(226,858
)
(112,676
)
Cash and cash equivalents at end of
period
$
467,902
$
412,581
Key Financial and Operational
Metrics
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(in thousands)
Reconciliation of Net Loss to Adjusted
EBITDA:
Net loss
$
(56,463
)
$
(32,348
)
$
(267,590
)
$
(68,283
)
Interest expense, net
57,601
20,824
200,155
44,380
Interest income
(30,590
)
(16,185
)
(81,670
)
(40,428
)
Income tax benefit
(9,325
)
—
(1,632
)
—
Depreciation expense
40,082
27,594
107,957
78,401
Amortization expense
7,416
7,309
22,112
21,894
EBITDA
8,721
7,194
(20,668
)
35,964
Non-cash compensation expense
5,494
4,463
19,812
20,059
ARO accretion expense
1,257
952
3,491
2,687
Financing deal costs
608
162
1,282
582
Natural disaster losses and related
charges, net
1,442
1,161
2,388
1,161
Acquisition costs
150
3,005
1,137
5,622
Unrealized (gain) loss on fair value
instruments and equity securities
(8,482
)
10,625
846
(4,136
)
Amortization of payments to dealers for
exclusivity and other bonus arrangements
1,996
1,185
4,957
3,110
Legal settlements
—
(1,001
)
750
(1,001
)
Provision for current expected credit
losses
8,360
10,967
29,467
26,881
Non-cash inventory and other
impairments
6,443
864
22,106
864
Indemnification payments to tax equity
investors
—
1,727
3,053
1,727
ITC sales
14,422
—
14,422
—
Adjusted EBITDA
$
40,411
$
41,304
$
83,043
$
93,520
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(in thousands)
Interest income from customer notes
receivable
$
26,761
$
15,119
$
69,950
$
39,051
Principal proceeds from customer notes
receivable, net of related revenue
$
36,966
$
22,284
$
102,914
$
67,478
Proceeds from investments in solar
receivables
$
3,779
$
3,768
$
8,708
$
9,388
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(in thousands, except per
system data)
Reconciliation of Total Operating
Expense, Net to Adjusted Operating Expense:
Total operating expense, net
$
236,614
$
177,085
$
673,239
$
426,756
Depreciation expense
(40,082
)
(27,594
)
(107,957
)
(78,401
)
Amortization expense
(7,416
)
(7,309
)
(22,112
)
(21,894
)
Non-cash compensation expense
(5,494
)
(4,463
)
(19,812
)
(20,059
)
ARO accretion expense
(1,257
)
(952
)
(3,491
)
(2,687
)
Financing deal costs
(608
)
(162
)
(1,282
)
(582
)
Natural disaster losses and related
charges, net
(1,442
)
(1,161
)
(2,388
)
(1,161
)
Acquisition costs
(150
)
(3,005
)
(1,137
)
(5,622
)
Amortization of payments to dealers for
exclusivity and other bonus arrangements
(1,996
)
(1,185
)
(4,957
)
(3,110
)
Legal settlements
—
1,001
(750
)
1,001
Provision for current expected credit
losses
(8,360
)
(10,967
)
(29,467
)
(26,881
)
Non-cash inventory and other
impairments
(6,443
)
(864
)
(22,106
)
(864
)
Direct sales costs
(12,635
)
(3,237
)
(33,199
)
(4,110
)
Cost of revenue related to cash sales
(12,698
)
(10,225
)
(34,001
)
(23,946
)
Cost of revenue related to inventory
sales
(50,694
)
(40,917
)
(129,016
)
(89,884
)
Unrealized gain (loss) on fair value
instruments
9,043
(10,637
)
3,123
3,809
Indemnification payments to tax equity
investors
—
(1,727
)
(3,053
)
(1,727
)
Gain on held-for-sale loans
8
—
11
—
Adjusted Operating Expense
$
96,390
$
53,681
$
261,645
$
150,638
Adjusted Operating Expense per weighted
average system
$
262
$
227
$
793
$
691
As of
September 30, 2023
As of
December 31, 2022
Number of customers
386,200
279,400
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Weighted average number of systems
(excluding loan agreements and cash sales)
225,200
171,600
210,900
163,800
Weighted average number of systems with
loan agreements
133,300
60,800
110,500
50,900
Weighted average number of systems with
cash sales
10,000
4,300
8,600
3,300
Weighted average number of systems
368,500
236,700
330,000
218,000
As of
September 30, 2023
As of
December 31, 2022
(in millions)
Estimated gross contracted customer value
- PV6
$
8,244
$
5,875
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 customer agreements, 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
6%.
Number of Customers. We define number of customers to
include every unique premises on which a Sunnova product is
installed or on which Sunnova is obligated to perform services for
a counterparty. 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 that same end of period as we are also including any
additional services and/or contracts a customer or third party
executed for the additional work for the same residence or
business. We track the weighted average system count in order to
accurately reflect the contribution of the appropriate number of
systems 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, losses on extinguishment of
long-term debt, realized and unrealized gains and losses on fair
value instruments and equity securities, amortization of payments
to dealers for exclusivity and other bonus arrangements, legal
settlements, investment tax credit ("ITC") sales 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, acquisition costs, losses on unenforceable contracts,
indemnification payments to tax equity investors 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 and other
impairments.
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, direct
sales costs, cost of revenue related to cash sales, cost of revenue
related to inventory sales, unrealized gains and losses on fair
value instruments, gains and losses on held-for-sale loans 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, acquisition costs, losses on unenforceable
contracts, indemnification payments to tax equity investors and
other non-cash items such as non-cash compensation expense, ARO
accretion expense, provision for current expected credit losses and
non-cash inventory and other impairments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231024474790/en/
Investor Contact: Rodney McMahan IR@sunnova.com 877-770-5211
Media Contact: Srishti Ahuja Tandon
srishti.ahujatandon@sunnova.com
Sunnova Energy (NYSE:NOVA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Sunnova Energy (NYSE:NOVA)
Gráfica de Acción Histórica
De May 2023 a May 2024