Vivint Solar, Inc.

CIK:0001607716|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Total revenue	$ 106,394	$ 90,757	$ 197,545	$ 160,128
Cost of revenue:
Total cost of revenue	59,958	58,865	134,829	116,319
Gross profit	46,436	31,892	62,716	43,809
Operating expenses:
Sales and marketing	35,394	37,037	75,002	66,671
Research and development	286	524	842	993
General and administrative	36,860	31,205	64,886	54,254
Total operating expenses	72,540	68,766	140,730	121,918
Loss from operations	(26,104)	(36,874)	(78,014)	(78,109)
Interest expense, net	24,712	19,472	46,344	38,599
Other expense, net	1,145	1,365	29,503	2,750
Loss before income taxes	(51,961)	(57,711)	(153,861)	(119,458)
Income tax expense	32,406	29,950	55,820	57,437
Net loss	(84,367)	(87,661)	(209,681)	(176,895)
Net loss attributable to non-controlling interests and redeemable non-controlling interests	(83,126)	(59,094)	(168,180)	(122,086)
Net loss attributable to common stockholders	$ (1,241)	$ (28,567)	$ (41,501)	$ (54,809)
Net loss attributable per share to common stockholders:
Basic and diluted	$ (0.01)	$ (0.24)	$ (0.33)	$ (0.45)
Weighted-average shares used in computing net loss attributable per share to common stockholders:
Basic and diluted	124,844	120,869	124,383	120,589
Customer Agreements and Incentives
Revenue:
Total revenue	$ 81,835	$ 63,355	$ 133,111	$ 102,958
Cost of revenue:
Total cost of revenue	44,331	43,074	97,154	83,265
Solar Energy System and Product Sales
Revenue:
Total revenue	24,559	27,402	64,434	57,170
Cost of revenue:
Total cost of revenue	$ 15,627	$ 15,791	$ 37,675	$ 33,054

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (209,681)	$ (176,895)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	47,745	39,317
Deferred income taxes	61,074	57,678
Stock-based compensation	8,264	7,835
Loss on solar energy systems and property and equipment	9,534	4,157
Noncash interest and other expense	3,625	3,302
Reduction in lease pass-through financing obligation	(2,123)	(2,032)
Losses on interest rate swaps	29,503	2,750
Changes in operating assets and liabilities:
Accounts receivable, net	(8,158)	(13,979)
Inventories	7,432	186
Prepaid expenses and other current assets	11,813	816
Other non-current assets, net	(94,263)	(64,632)
Accounts payable	713	516
Accrued compensation	(8,586)	(999)
Deferred revenue	(13,570)	717
Accrued and other liabilities	5,916	179
Net cash used in operating activities	(150,762)	(141,084)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for the cost of solar energy systems	(135,247)	(124,400)
Payments for property and equipment	(2,926)	(994)
Proceeds from disposals of solar energy systems and property and equipment	1,357	1,128
Purchase of intangible assets	(527)	(115)
Net cash used in investing activities	(137,343)	(124,381)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from investment by non-controlling interests and redeemable non-controlling interests	161,827	159,638
Distributions paid to non-controlling interests and redeemable non-controlling interests	(24,995)	(18,051)
Proceeds from long-term debt	347,413	133,164
Payments on long-term debt	(19,703)	(20,913)
Payments for debt issuance and deferred offering costs	(9,604)	(2,962)
Proceeds from lease pass-through financing obligation	1,542	1,518
Principal payments on finance lease obligations	(2,116)	(577)
Proceeds from issuance of common stock, net of withholding taxes paid	747	270
Net cash provided by financing activities	455,111	252,087
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS	167,006	(13,378)
CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—Beginning of period	255,940	290,896
CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED AMOUNTS—End of period	422,946	277,518
NONCASH INVESTING AND FINANCING ACTIVITIES:
Costs of solar energy systems included in changes in accounts payable, accrued compensation and accrued and other liabilities	25,931	43,028
Right-of-use assets obtained in exchange for new operating lease liabilities	13,770	8,665
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 2,025	$ 3,756

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Current assets:

Cash and cash equivalents

$ 336,137

$ 166,048

Accounts receivable, net

32,162

24,314

Inventories

13,144

20,576

Prepaid expenses and other current assets

27,818

41,137

Total current assets

409,261

252,075

Restricted cash and cash equivalents

86,809

89,892

Solar energy systems, net

1,873,031

1,759,861

Property and equipment, net

20,021

17,500

Other non-current assets, net

716,186

680,062

TOTAL ASSETS

^[1]

3,105,308

2,799,390

Current liabilities:

Accounts payable

27,178

59,007

Distributions payable to non-controlling interests and redeemable non-controlling interests

15,458

10,253

Accrued compensation

25,435

34,149

Current portion of long-term debt

24,664

16,405

Current portion of deferred revenue

20,260

40,715

Current portion of finance lease obligation

2,534

2,274

Accrued and other current liabilities

85,847

78,539

Total current liabilities

201,376

241,342

Long-term debt, net of current portion

1,794,990

1,483,256

Deferred revenue, net of current portion

24,516

17,631

Finance lease obligation, net of current portion

6,029

6,443

Deferred tax liability, net

636,869

583,695

Other non-current liabilities

139,449

74,423

Total liabilities

^[1]

2,803,229

2,406,790

Commitments and contingencies (Note 19)

Redeemable non-controlling interests

114,989

115,384

Stockholders’ equity:

Common stock, $0.01 par value—1,000,000 shares authorized, 125,411 shares issued and outstanding as of June 30, 2020; 1,000,000 shares authorized, 123,056 shares issued and outstanding as of December 31, 2019

1,254

1,231

Additional paid-in capital

600,627

591,639

Accumulated other comprehensive loss

(41,589)

(20,436)

Accumulated deficit

(423,787)

(381,961)

Total stockholders’ equity

136,505

190,473

Non-controlling interests

50,585

86,743

Total equity

187,090

277,216

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

$ 3,105,308

$ 2,799,390

[1]

The Company’s assets as of June 30, 2020 and December 31, 2019 include $2,368.4 million and $2,194.3 million consisting of assets of variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs. These assets include cash and cash equivalents of $56.9 million and $82.8 million as of June 30, 2020 and December 31, 2019; accounts receivable, net, of $23.9 million and $8.9 million as of June 30, 2020 and December 31, 2019; prepaid expenses and other current assets of $2.1 million and $1.7 million as of June 30, 2020 and December 31, 2019; restricted cash and cash equivalents of $10.1 million and $8.9 million as of June 30, 2020 and December 31, 2019; solar energy systems, net, of $1,683.8 million and $1,587.4 million as of June 30, 2020 and December 31, 2019; and other non-current assets, net of $591.6 million and $504.7 million as of June 30, 2020 and December 31, 2019. The Company’s liabilities as of June 30, 2020 and December 31, 2019 include $297.6 million and $233.4 million of liabilities of VIEs whose creditors have no recourse to the Company. These liabilities include distributions payable to non-controlling interests and redeemable non-controlling interests of $15.5 million and $10.3 million as of June 30, 2020 and December 31, 2019; accrued and other current liabilities of $6.7 million and $6.4 million as of June 30, 2020 and December 31, 2019; long-term debt of $254.5 million and $201.6 million as of June 30, 2020 and December 31, 2019; deferred revenue of $20.7 million and $14.8 million as of June 30, 2020 and December 31, 2019; and other non-current liabilities of $0.3 million each period as of June 30, 2020 and December 31, 2019. For further information see Note 14—Investment Funds.