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.