Correction Consolidated Statements of Cash Flows: Sunrun Reports Fourth Quarter and Full Year 2015 Financial Results

Sunrun, the largest dedicated residential solar company in the United States,recently announced financial results for the fourth quarter and full year ended December 31, 2015.

Fourth Quarter 2015 Operating Highlights

• 80 MW booked, an increase of 117% year-over-year.
• 68 MW deployed, representing 83% growth year-over-year.
• Cumulative MW deployed of 596 MW.
• Quarterly NPV creation was $50 million, an increase of 1% quarter-over-quarter.
• Pre-tax Project Value per watt was $4.50, compared to $4.70 in the prior quarter.
• Creation Cost per watt of $3.64 decreased $0.11, or 3% quarter-over-quarter.

Full Year 2015 Operating Highlights

• 274 MW booked, an increase of 85% organic growth year-over-year.
• 203 MW deployed, representing 76% organic growth year-over-year.
• Creation Cost per watt of $3.89.
• Aggregate NPV creation of $160 million.

“Our customer-centric solar as a service business model has proven to be highly scalable even beyond our early expectations,” said Lynn Jurich, chief executive officer of Sunrun. “As industry fundamentals continue to improve, we believe that our consistent focus on customer net present value, and careful management of liquidity, positions us well in 2016 towards our goal to deliver the industry’s most valuable and satisfied customer base.”

Key Operating Metrics 

In the fourth quarter of 2015, MW booked increased to 80 MW from 37 MW in the fourth quarter of 2014 and MW deployed increased to 68 MW from 37 MW in the fourth quarter of 2014. This resulted in 117% year-over-year growth in MW booked and 83% year-over-year growth in MW deployed.

In full year 2015, MW booked increased to 274 MW from 148 MW in full year 2014 and MW deployed increased to 203 MW from 115 MW in full year 2014 (excluding 14.7 MW associated with an opportunistic asset purchase), slightly below our guidance of 205 MW for 2015, primarily due to the closure of the Nevada market. This resulted in 85% MW year-over-year organic growth in MW booked and 76% year-over-year organic growth in MW deployed.

NPV created in the fourth quarter of 2015 was $50.0 million, compared to $49.5 million in the third quarter of 2015, with $160 million of NPV created in full year 2015. Pre-tax project value per watt was $4.50, compared to $4.70 in the third quarter of 2015. Creation cost per watt was$3.64 in the fourth quarter of 2015 compared to $3.75 in the third quarter of 2015.

Estimated nominal contracted payments remaining as of December 31, 2015 totaled $2.4 billion, compared to $1.6 billion as of December 31, 2014, an increase of 51%. Estimated retained value as of December 31, 2015 was $1.5 billion compared to $1.0 billion as ofDecember 31, 2014, an increase of 52%.

Financing Activities

We have sufficient tax equity committed or subject to executed term sheets to fund our growth plans into November.

In January, we closed a $250 million credit facility at an approximate weighted average cost of 4.5%, which meets our expected volume and liquidity needs for the year.  Between the A and B tranches, the advance rate on this facility is approximately 75% of contracted cash flows available for distribution after tax equity dividends.  The initial draw on this facility is a significant factor in our expectation of being approximately cash flow breakeven in Q1 2016.

Fourth Quarter 2015 GAAP Results

Total revenue grew to $99.6 million in the fourth quarter of 2015 from $60.1 million in the fourth quarter of 2014. In the fourth quarter of 2015, operating leases and incentives revenue grew 41% year-over-year to $29.6 million. Solar energy systems and product sales were $70.1 million in the fourth quarter of 2015, an increase of 79% year-over-year.

Total cost of revenue was $96.9 million, an increase of 72% year-over-year. Total operating expenses were $164.8 million in the fourth quarter of 2015, an increase of 61% year-over-year.

Net loss attributable to common stockholders was $15.0 million in the fourth quarter of 2015, compared to a net loss of $2.8 million in the third quarter of 2015 and a net loss of $26.7 millionin the fourth quarter of 2014.

GAAP net loss per share available to common shareholders was ($0.15) per share.

Full Year 2015 GAAP Results

Total revenue grew to $304.6 million in full year 2015 from $198.6 million in 2014. Operating leases and incentives revenue grew 40% year-over-year to $118.0 million. Solar energy systems and product sales were $186.6 million in 2015, an increase of 63% year-over-year.

Total cost of revenue was $280.5 million, an increase of 62% year-over-year. Total operating expenses were $523.8 million in 2015, an increase of 58% year-over-year.

Net loss attributable to common stockholders was $28.2 million in 2015, compared to a net loss of $70.9 million in 2014.

GAAP net loss per share available to common shareholders was ($0.96) per share.

Guidance for Q1 and Full Year 2016

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.

For 2016, we expect to deploy approximately 285 MW. We expect our Sunrun built business to grow at a nearly 100% growth rate.

We will continue to target a $1 per watt of NPV across the full year despite compression due to our exit from Nevada and capacity investments to support the doubling of the direct business.

In Q1, we expect to deploy 56 MW. We have removed approximately 12 MW of backlog fromNevada that would have been deployed in the quarter.