Sunnova Reports Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter 2023 and Recent Highlights
- Deployed over 34,000 customers in the fourth quarter; bringing total customer count to 419,200 as of December 31, 2023;
- Increased single customer economics as expressed through fully burdened unlevered return;
- Continued to execute a cost reduction plan for 2024 enhancing cash generation; and
- Initiated 2025 cash generation guidance between $200 million and $500 million.
HOUSTON–(BUSINESS WIRE)–Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), a leading adaptive energy services company, today announced financial results for the fourth quarter and full year ended December 31, 2023.
“In 2023, Sunnova demonstrated good performance across its operations. For the year, we expanded our customer base to 419,200 and hit our 2023 targets for Adjusted EBITDA, interest income, and principal proceeds. Additionally, we increased our single customer economics and unveiled our Global Command Center to enhance customer service, solidifying our position as a leading adaptive energy services company,” said William J. (John) Berger, Sunnova’s founder and CEO.
“Looking ahead to the remainder of 2024, our focus will be on cash generation driven by cost reductions, asset sales, and expanding margins. By year end, we anticipate the combination of our revised cost structure and increased operating leverage will result in a decrease of over 20% in total Adjusted Operating Expense per customer. Through a combination of securitizations and sales, in 2024 we expect to generate enough cash to provide the working capital needed to hit our growth target, net of operating costs, and exit the year with an annual cash generation run rate between $200 million and $500 million.”
Fourth Quarter and Full Year 2023 Results
Revenue was relatively unchanged at $194.2 million for the three months ended December 31, 2023 compared to $195.6 million for the three months ended December 31, 2022.
Revenue increased to $720.7 million, or by $163.0 million, for the year ended December 31, 2023 compared to the year ended December 31, 2022. This increase was primarily the result of an increased number of solar energy systems in service, an increase in direct sales revenue primarily due to an increased focus on direct sales of additional services to existing customers, and an increase in service revenue primarily due to an increase in repair service revenue. This was partially offset by lower inventory sales revenue from the sale of inventory to our dealers or other parties.
Total operating expense, net increased to $290.8 million, or by $78.4 million for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. Total operating expense, net increased to $964.1 million, or by $324.9 million for the year ended December 31, 2023 compared to the year ended December 31, 2022. These increases were primarily the result of an increased number of solar energy systems in service, higher general and administrative expense, higher cost of revenue – other primarily due to an increased focus on direct sales of additional services to existing customers, a write off of goodwill in 2023 as the carrying amount exceeded the fair value, and a decrease in other operating income primarily due to changes in the fair value of certain financial instruments and contingent consideration. This was partially offset by lower cost of revenue – inventory sales from the sale of inventory to our dealers and other parties.
Adjusted Operating Expense increased to $114.9 million, or by $50.3 million, for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. Adjusted Operating Expense increased to $376.5 million, or by $161.3 million, for the year ended December 31, 2023 compared to the year ended December 31, 2022. These increases were 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 $234.8 million for the three months ended December 31, 2023 compared to a net loss of $62.0 million for the three months ended December 31, 2022. Sunnova incurred a net loss of $502.4 million for the year ended December 31, 2023 compared to a net loss of $130.3 million for the year ended December 31, 2022. These higher net losses were primarily the result of an increase in interest expense, higher general and administrative expense, a write off of goodwill in 2023 as the carrying amount exceeded the fair value, and a decrease in other operating income primarily due to changes in the fair value of certain financial instruments and contingent consideration. This was partially offset by an increase in interest income primarily due to our larger customer loan portfolio.
Adjusted EBITDA was $191.5 million for the three months ended December 31, 2023 compared to $25.6 million for the three months ended December 31, 2022. Adjusted EBITDA was $274.5 million for the year ended December 31, 2023 compared to $119.1 million for the year ended December 31, 2022. These increases were primarily the result of investment tax credit sales, which began in 2023.
Principal proceeds from customer notes receivable (net of amounts recorded in revenue) and proceeds from investments in solar receivables was $46.7 million for the three months ended December 31, 2023 compared to $27.0 million for the three months ended December 31, 2022. Principal proceeds from customer notes receivable (net of amounts recorded in revenue) and proceeds from investments in solar receivables was $158.3 million for the year ended December 31, 2023 compared to $103.8 million for the year ended December 31, 2022. These increases were primarily due to our larger customer loan portfolio.
Interest income was $34.2 million for the three months ended December 31, 2023 compared to $19.4 million for the three months ended December 31, 2022. Interest income was $115.9 million for the year ended December 31, 2023 compared to $59.8 million for the year ended December 31, 2022. These increases were primarily due to our larger customer loan portfolio.
Liquidity & Capital Resources
As of December 31, 2023, Sunnova had total cash of $494.4 million, including restricted and unrestricted cash.
2024 Full Year Guidance
Sunnova management reaffirms its 2024 full year guidance:
- Customer additions between 185,000 and 195,000;
- Adjusted EBITDA between $350 million and $450 million;
- Interest income 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.
Conference Call Information
Sunnova is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2023 results at 8:00 a.m. Eastern Time, on February 22, 2024. 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 227209.
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 276217. The replay will be available until February 29, 2024.
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 2024 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, 2023. 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 adaptive 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 sunnova.com.
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SUNNOVA ENERGY INTERNATIONAL INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts and share par values) |
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As of December 31, |
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|
|
2023 |
|
2022 |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
212,832 |
|
|
$ |
360,257 |
|
|
Accounts receivable—trade, net |
|
40,767 |
|
|
|
24,435 |
|
|
Accounts receivable—other |
|
253,350 |
|
|
|
212,397 |
|
|
Other current assets, net of allowance of $4,659 and $3,250 as of December 31, 2023 and 2022, respectively |
|
429,299 |
|
|
|
351,300 |
|
|
Total current assets |
|
936,248 |
|
|
|
948,389 |
|
|
|
|
|
|
||||
|
Property and equipment, net |
|
5,638,794 |
|
|
|
3,784,801 |
|
|
Customer notes receivable, net of allowance of $111,818 and $77,998 as of December 31, 2023 and 2022, respectively |
|
3,735,986 |
|
|
|
2,466,149 |
|
|
Intangible assets, net |
|
134,058 |
|
|
|
162,512 |
|
|
Goodwill |
|
— |
|
|
|
13,150 |
|
|
Other assets |
|
895,885 |
|
|
|
961,891 |
|
|
Total assets (1) |
$ |
11,340,971 |
|
|
$ |
8,336,892 |
|
|
|
|
|
|
||||
|
Liabilities, Redeemable Noncontrolling Interests and Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
355,791 |
|
|
$ |
116,136 |
|
|
Accrued expenses |
|
122,355 |
|
|
|
139,873 |
|
|
Current portion of long-term debt |
|
483,497 |
|
|
|
214,431 |
|
|
Other current liabilities |
|
133,649 |
|
|
|
71,506 |
|
|
Total current liabilities |
|
1,095,292 |
|
|
|
541,946 |
|
|
|
|
|
|
||||
|
Long-term debt, net |
|
7,030,756 |
|
|
|
5,194,755 |
|
|
Other long-term liabilities |
|
1,086,011 |
|
|
|
712,741 |
|
|
Total liabilities (1) |
|
9,212,059 |
|
|
|
6,449,442 |
|
|
|
|
|
|
||||
|
Redeemable noncontrolling interests |
|
165,872 |
|
|
|
165,737 |
|
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Common stock, 122,466,515 and 114,939,079 shares issued as of December 31, 2023 and 2022, respectively, at $0.0001 par value |
|
12 |
|
|
|
11 |
|
|
Additional paid-in capital—common stock |
|
1,755,461 |
|
|
|
1,637,847 |
|
|
Accumulated deficit |
|
(228,583 |
) |
|
|
(364,782 |
) |
|
Total stockholders’ equity |
|
1,526,890 |
|
|
|
1,273,076 |
|
|
Noncontrolling interests |
|
436,150 |
|
|
|
448,637 |
|
|
Total equity |
|
1,963,040 |
|
|
|
1,721,713 |
|
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
11,340,971 |
|
|
$ |
8,336,892 |
|
|
(1) The consolidated assets as of December 31, 2023 and 2022 include $5,297,816 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 $54,674 and $40,382 as of December 31, 2023 and 2022, respectively; accounts receivable—trade, net of $13,860 and $8,542 as of December 31, 2023 and 2022, respectively; accounts receivable—other of $187,607 and $810 as of December 31, 2023 and 2022, respectively; other current assets of $693,772 and $422,364 as of December 31, 2023 and 2022, respectively; property and equipment, net of $4,273,478 and $2,680,587 as of December 31, 2023 and 2022, respectively; and other assets of $74,425 and $48,586 as of December 31, 2023 and 2022, respectively. The consolidated liabilities as of December 31, 2023 and 2022 include $278,016 and $66,441, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $197,072 and $9,015 as of December 31, 2023 and 2022, respectively; accrued expenses of $157 and $287 as of December 31, 2023 and 2022, respectively; other current liabilities of $7,269 and $4,420 as of December 31, 2023 and 2022, respectively; and other long-term liabilities of $73,518 and $52,719 as of December 31, 2023 and 2022, respectively. |
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SUNNOVA ENERGY INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
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|
Revenue |
$ |
194,182 |
|
|
$ |
195,592 |
|
|
$ |
720,653 |
|
|
$ |
557,690 |
|
|
|
|
|
|
|
|
|
|
||||||||
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Operating expense: |
|
|
|
|
|
|
|
||||||||
|
Cost of revenue—depreciation |
|
37,999 |
|
|
|
26,345 |
|
|
|
130,261 |
|
|
|
96,280 |
|
|
Cost of revenue—inventory sales |
|
47,355 |
|
|
|
88,426 |
|
|
|
176,371 |
|
|
|
178,310 |
|
|
Cost of revenue—other |
|
39,266 |
|
|
|
19,513 |
|
|
|
120,865 |
|
|
|
52,487 |
|
|
Operations and maintenance |
|
37,691 |
|
|
|
12,892 |
|
|
|
96,997 |
|
|
|
36,679 |
|
|
General and administrative |
|
116,232 |
|
|
|
87,642 |
|
|
|
430,422 |
|
|
|
302,004 |
|
|
Goodwill impairment |
|
13,150 |
|
|
|
— |
|
|
|
13,150 |
|
|
|
— |
|
|
Other operating income |
|
(844 |
) |
|
|
(22,380 |
) |
|
|
(3,978 |
) |
|
|
(26,566 |
) |
|
Total operating expense, net |
|
290,849 |
|
|
|
212,438 |
|
|
|
964,088 |
|
|
|
639,194 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating loss |
|
(96,667 |
) |
|
|
(16,846 |
) |
|
|
(243,435 |
) |
|
|
(81,504 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
171,782 |
|
|
|
63,395 |
|
|
|
371,937 |
|
|
|
107,775 |
|
|
Interest income |
|
(34,202 |
) |
|
|
(19,371 |
) |
|
|
(115,872 |
) |
|
|
(59,799 |
) |
|
Other (income) expense |
|
(20 |
) |
|
|
(2,763 |
) |
|
|
3,949 |
|
|
|
(3,090 |
) |
|
Loss before income tax |
|
(234,227 |
) |
|
|
(58,107 |
) |
|
|
(503,449 |
) |
|
|
(126,390 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax (benefit) expense |
|
609 |
|
|
|
3,886 |
|
|
|
(1,023 |
) |
|
|
3,886 |
|
|
Net loss |
|
(234,836 |
) |
|
|
(61,993 |
) |
|
|
(502,426 |
) |
|
|
(130,276 |
) |
|
Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests |
|
(47,196 |
) |
|
|
(41,089 |
) |
|
|
(84,465 |
) |
|
|
31,366 |
|
|
Net loss attributable to stockholders |
$ |
(187,640 |
) |
|
$ |
(20,904 |
) |
|
$ |
(417,961 |
) |
|
$ |
(161,642 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss per share attributable to stockholders—basic and diluted |
$ |
(1.53 |
) |
|
$ |
(0.18 |
) |
|
$ |
(3.53 |
) |
|
$ |
(1.41 |
) |
|
Weighted average common shares outstanding—basic and diluted |
|
122,420,173 |
|
|
|
114,919,237 |
|
|
|
118,344,728 |
|
|
|
114,451,034 |
|
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SUNNOVA ENERGY INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
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Year Ended December 31, |
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|
|
2023 |
|
2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
||||
|
Net loss |
$ |
(502,426 |
) |
|
$ |
(130,276 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
|
Depreciation |
|
153,387 |
|
|
|
108,167 |
|
|
Impairment and loss on disposals, net |
|
56,592 |
|
|
|
8,459 |
|
|
Amortization of intangible assets |
|
28,432 |
|
|
|
28,441 |
|
|
Amortization of deferred financing costs |
|
25,226 |
|
|
|
13,640 |
|
|
Amortization of debt discount |
|
19,174 |
|
|
|
9,342 |
|
|
Non-cash effect of equity-based compensation plans |
|
25,535 |
|
|
|
24,218 |
|
|
Non-cash direct sales revenue |
|
(60,590 |
) |
|
|
(8,484 |
) |
|
Provision for current expected credit losses and other bad debt expense |
|
46,199 |
|
|
|
43,018 |
|
|
Unrealized (gain) loss on derivatives |
|
67,318 |
|
|
|
(19,451 |
) |
|
Unrealized (gain) loss on fair value instruments and equity securities |
|
188 |
|
|
|
(29,279 |
) |
|
Other non-cash items |
|
7,332 |
|
|
|
(34,962 |
) |
|
Changes in components of operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
101,125 |
|
|
|
(159,295 |
) |
|
Other current assets |
|
(105,743 |
) |
|
|
(119,794 |
) |
|
Other assets |
|
(115,488 |
) |
|
|
(124,981 |
) |
|
Accounts payable |
|
(5,493 |
) |
|
|
4,486 |
|
|
Accrued expenses |
|
(11,213 |
) |
|
|
48,385 |
|
|
Other current liabilities |
|
43,665 |
|
|
|
11,772 |
|
|
Other long-term liabilities |
|
(10,782 |
) |
|
|
(6,832 |
) |
|
Net cash used in operating activities |
|
(237,562 |
) |
|
|
(333,426 |
) |
|
|
|
|
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
||||
|
Purchases of property and equipment |
|
(1,832,714 |
) |
|
|
(868,208 |
) |
|
Payments for investments and customer notes receivable |
|
(909,488 |
) |
|
|
(1,236,228 |
) |
|
Proceeds from customer notes receivable |
|
180,721 |
|
|
|
109,760 |
|
|
Proceeds from investments in solar receivables |
|
11,582 |
|
|
|
12,394 |
|
|
Other, net |
|
5,238 |
|
|
|
680 |
|
|
Net cash used in investing activities |
|
(2,544,661 |
) |
|
|
(1,981,602 |
) |
|
|
|
|
|
||||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
||||
|
Proceeds from long-term debt |
|
3,507,828 |
|
|
|
2,903,727 |
|
|
Payments of long-term debt |
|
(1,406,022 |
) |
|
|
(758,355 |
) |
|
Payments on notes payable |
|
(7,151 |
) |
|
|
— |
|
|
Payments of deferred financing costs |
|
(75,920 |
) |
|
|
(30,791 |
) |
|
Purchase of capped call transactions |
|
— |
|
|
|
(48,420 |
) |
|
Proceeds from issuance of common stock, net |
|
81,316 |
|
|
|
(3,190 |
) |
|
Contributions from redeemable noncontrolling interests and noncontrolling interests |
|
692,894 |
|
|
|
449,398 |
|
|
Distributions to redeemable noncontrolling interests and noncontrolling interests |
|
(48,986 |
) |
|
|
(29,771 |
) |
|
Payments of costs related to redeemable noncontrolling interests and noncontrolling interests |
|
(11,881 |
) |
|
|
(13,091 |
) |
|
Proceeds from sales of investment tax credits for redeemable noncontrolling interests and noncontrolling interests |
|
5,971 |
|
|
|
— |
|
|
Other, net |
|
(6,998 |
) |
|
|
(802 |
) |
|
Net cash provided by financing activities |
|
2,731,051 |
|
|
|
2,468,705 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(51,172 |
) |
|
|
153,677 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
545,574 |
|
|
|
391,897 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
494,402 |
|
|
|
545,574 |
|
|
Restricted cash included in other current assets |
|
(62,188 |
) |
|
|
(51,733 |
) |
|
Restricted cash included in other assets |
|
(219,382 |
) |
|
|
(133,584 |
) |
|
Cash and cash equivalents at end of period |
$ |
212,832 |
|
|
$ |
360,257 |
|
|
Key Financial and Operational Metrics |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(in thousands) |
||||||||||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
|
Net loss |
$ |
(234,836 |
) |
|
$ |
(61,993 |
) |
|
$ |
(502,426 |
) |
|
$ |
(130,276 |
) |
|
Interest expense, net |
|
171,782 |
|
|
|
63,395 |
|
|
|
371,937 |
|
|
|
107,775 |
|
|
Interest income |
|
(34,202 |
) |
|
|
(19,371 |
) |
|
|
(115,872 |
) |
|
|
(59,799 |
) |
|
Income tax (benefit) expense |
|
609 |
|
|
|
3,886 |
|
|
|
(1,023 |
) |
|
|
3,886 |
|
|
Depreciation expense |
|
45,430 |
|
|
|
29,766 |
|
|
|
153,387 |
|
|
|
108,167 |
|
|
Amortization expense |
|
7,471 |
|
|
|
7,330 |
|
|
|
29,583 |
|
|
|
29,224 |
|
|
EBITDA |
|
(43,746 |
) |
|
|
23,013 |
|
|
|
(64,414 |
) |
|
|
58,977 |
|
|
Non-cash compensation expense |
|
5,723 |
|
|
|
4,159 |
|
|
|
25,535 |
|
|
|
24,218 |
|
|
ARO accretion expense |
|
1,414 |
|
|
|
1,014 |
|
|
|
4,905 |
|
|
|
3,701 |
|
|
Financing deal costs |
|
441 |
|
|
|
348 |
|
|
|
1,723 |
|
|
|
930 |
|
|
Natural disaster losses and related charges, net |
|
443 |
|
|
|
3 |
|
|
|
2,831 |
|
|
|
1,164 |
|
|
Acquisition costs |
|
87 |
|
|
|
2,179 |
|
|
|
1,224 |
|
|
|
7,801 |
|
|
Unrealized (gain) loss on fair value instruments and equity securities |
|
(658 |
) |
|
|
(25,143 |
) |
|
|
188 |
|
|
|
(29,279 |
) |
|
Amortization of payments to dealers for exclusivity and other bonus arrangements |
|
1,987 |
|
|
|
1,217 |
|
|
|
6,944 |
|
|
|
4,327 |
|
|
Legal settlements |
|
930 |
|
|
|
— |
|
|
|
1,680 |
|
|
|
(1,001 |
) |
|
Provision for current expected credit losses |
|
6,048 |
|
|
|
13,279 |
|
|
|
35,515 |
|
|
|
40,160 |
|
|
Non-cash inventory and other impairments |
|
28,889 |
|
|
|
4,511 |
|
|
|
50,995 |
|
|
|
5,375 |
|
|
Indemnification payments to tax equity investors |
|
(3,075 |
) |
|
|
1,010 |
|
|
|
(22 |
) |
|
|
2,737 |
|
|
ITC sales |
|
193,003 |
|
|
|
— |
|
|
|
207,425 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
191,486 |
|
|
$ |
25,590 |
|
|
$ |
274,529 |
|
|
$ |
119,110 |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
(in thousands) |
||||||||||
|
Interest income |
$ |
34,201 |
|
$ |
19,371 |
|
$ |
115,872 |
|
$ |
59,799 |
|
Principal proceeds from customer notes receivable, net of related revenue |
$ |
43,787 |
|
$ |
23,977 |
|
$ |
146,701 |
|
$ |
91,455 |
|
Proceeds from investments in solar receivables |
$ |
2,874 |
|
$ |
3,006 |
|
$ |
11,582 |
|
$ |
12,394 |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(in thousands, except per system data) |
||||||||||||||
|
Reconciliation of Total Operating Expense, Net to Adjusted Operating Expense: |
|
|
|
|
|
|
|
||||||||
|
Total operating expense, net |
$ |
290,849 |
|
|
$ |
212,438 |
|
|
$ |
964,088 |
|
|
$ |
639,194 |
|
|
Depreciation expense |
|
(45,430 |
) |
|
|
(29,766 |
) |
|
|
(153,387 |
) |
|
|
(108,167 |
) |
|
Amortization expense |
|
(7,471 |
) |
|
|
(7,330 |
) |
|
|
(29,583 |
) |
|
|
(29,224 |
) |
|
Non-cash compensation expense |
|
(5,723 |
) |
|
|
(4,159 |
) |
|
|
(25,535 |
) |
|
|
(24,218 |
) |
|
ARO accretion expense |
|
(1,414 |
) |
|
|
(1,014 |
) |
|
|
(4,905 |
) |
|
|
(3,701 |
) |
|
Financing deal costs |
|
(441 |
) |
|
|
(348 |
) |
|
|
(1,723 |
) |
|
|
(930 |
) |
|
Natural disaster losses and related charges, net |
|
(443 |
) |
|
|
(3 |
) |
|
|
(2,831 |
) |
|
|
(1,164 |
) |
|
Acquisition costs |
|
(87 |
) |
|
|
(2,179 |
) |
|
|
(1,224 |
) |
|
|
(7,801 |
) |
|
Amortization of payments to dealers for exclusivity and other bonus arrangements |
|
(1,987 |
) |
|
|
(1,217 |
) |
|
|
(6,944 |
) |
|
|
(4,327 |
) |
|
Legal settlements |
|
(930 |
) |
|
|
— |
|
|
|
(1,680 |
) |
|
|
1,001 |
|
|
Provision for current expected credit losses |
|
(6,048 |
) |
|
|
(13,279 |
) |
|
|
(35,515 |
) |
|
|
(40,160 |
) |
|
Non-cash inventory and other impairments |
|
(28,889 |
) |
|
|
(4,511 |
) |
|
|
(50,995 |
) |
|
|
(5,375 |
) |
|
Direct sales costs |
|
(14,850 |
) |
|
|
(2,152 |
) |
|
|
(48,049 |
) |
|
|
(6,262 |
) |
|
Cost of revenue related to cash sales |
|
(18,643 |
) |
|
|
(14,820 |
) |
|
|
(52,644 |
) |
|
|
(38,766 |
) |
|
Cost of revenue related to inventory sales |
|
(47,355 |
) |
|
|
(88,426 |
) |
|
|
(176,371 |
) |
|
|
(178,310 |
) |
|
Unrealized gain on fair value instruments |
|
638 |
|
|
|
22,380 |
|
|
|
3,761 |
|
|
|
26,189 |
|
|
Indemnification payments to tax equity investors |
|
3,075 |
|
|
|
(1,010 |
) |
|
|
22 |
|
|
|
(2,737 |
) |
|
Gain on held-for-sale loans |
|
8 |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
Adjusted Operating Expense |
$ |
114,859 |
|
|
$ |
64,604 |
|
|
$ |
376,504 |
|
|
$ |
215,242 |
|
|
Adjusted Operating Expense per weighted average system |
$ |
283 |
|
|
$ |
247 |
|
|
$ |
1,079 |
|
|
$ |
940 |
|
Contacts
Investor Contact:
Rodney McMahan
IR@sunnova.com
877-770-5211
Media Contact:
Ryan Bechtold
Ryan.Bechtold@sunnova.com
