Sunrun Reports First Quarter 2020 Financial Results

298,000 Customers, an increase of 23% year-over-year

Net Earning Assets of $1.6 billion, an increase of 12% year-over-year

Transitioned to a Digital Sales and Streamlined Operating Model to Provide Essential Service and Reduce Soft Costs

PVTIME - Sunrun (Nasdaq: RUN), the nation’s leading provider of residential solar, storage and energy services, today announced financial results for the first quarter ended March 31, 2020.

“Sunrun has dramatically increased our
corporate metabolism over the past few weeks. We’ve made the process of
going solar nearly contact-free for our customers, launched digital
selling, made investments in our technology platform, and accelerated
process improvements. We will emerge a stronger business,” said Lynn
Jurich, Sunrun’s Chief Executive Officer and co-founder. “Our orders
reached a single-day all-time high at the end of April as consumers are
choosing to power through. Sunrun’s services give people peace of mind
financially and enable them to safeguard their families against the
increasingly unreliable electricity grid when they need power most, all
while making the planet a better place to live.”

Key Operating Metrics

In
the first quarter of 2020, Megawatts Deployed (MW) increased to 97 MW
from 86 MW in the first quarter of 2019, a 13% year-over-year
improvement.

Creation Cost per watt was $3.09 in the first
quarter of 2020, compared to $3.46 in the first quarter of 2019, an 11%
year-over-year improvement.

NPV created in the first quarter of
2020 was $81 million. Unlevered NPV in the first quarter of 2020 was
$0.98 per watt, representing approximately $7,100 per customer.

Gross
Earning Assets as of March 31, 2020 were $3.9 billion, up $695 million,
or 22%, from the prior year. Net Earning Assets as of March 31, 2020
were $1.6 billion, up $170 million, reflecting a 12% increase from the
prior year.

Cash, including restricted cash, increased $56.3
million from the prior year.  Cash Generation was $5 million in the
first quarter of 2020.  The company defines Cash Generation as the
increase in total cash, including restricted cash, less any increases in
recourse debt, and adjusted for certain items.  In the first quarter of
2020, Cash Generation was adjusted for $0.4 million investment in the
company’s Investment Tax Credit safe harbor program.

First Quarter 2020 GAAP Results

Total
revenue grew to $210.7 million in the first quarter of 2020, up $16.2
million, or 8%, from the first quarter of 2019. Customer agreements and
incentives revenue was $99.1 million, a decline of $0.7 million, or 1%,
compared to the first quarter of 2019, owing to a shift in tax equity
fund mix which has different revenue accounting treatment for
incentives. Customer agreements revenue was $94.3 million, an increase
of $15.7 million, or 20%, from the first quarter of 2019. Solar energy
systems and product sales revenue was $111.6 million, an increase of
$17.0 million, or 18%, compared to the first quarter of 2019. Customer
agreements revenue, solar energy systems revenue and product sales
revenue was $205.9 million in total, an increase of $32.7 million, or
19%, compared to the first quarter of 2019.

Total cost of
revenue was $169.9 million, an increase of 15% year-over-year. Total
operating expenses were $273.7 million, an increase of 15%
year-over-year.

Net loss attributable to common stockholders was $28.0 million, or $0.23 per share, in the first quarter of 2020.

Financing Activities

As
of May 6, 2020, considering only closed tax equity and debt capital
commitments, the company’s pre-arranged financings provide capital to
fund approximately 220 MW of leased projects beyond what was deployed
through the end of first quarter of 2020, at above 90% of contracted
Project Value. The company also has additional project finance capital
to fund installations at lower advance rates.

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