Market Overview

Sunrun Reports Second Quarter 2018 Financial Results


Total deployments of 91 MWs, an increase of 20% year-over-year

Customers now exceed 202,000, an increase of 29% year-over-year

Reiterating full year guidance of 15% growth in deployments

SAN FRANCISCO, Aug. 09, 2018 (GLOBE NEWSWIRE) -- Sunrun (NASDAQ:RUN), the nation's largest provider of residential solar, storage and energy services, today announced financial results for the second quarter ended June 30, 2018.

"We continue to gain share, installing a record amount of solar energy and home batteries this quarter, driven by over 40% growth in our direct business," said Lynn Jurich, Sunrun's chief executive officer. "We have now delivered clean, resilient and affordable energy to more than 202,000 customers. Given our market leadership position and enormous opportunity for growth, we are investing heavily to strengthen our competitive advantages in customer acquisition and experience."

Adoption of New Accounting Standards

On January 1, 2018, Sunrun adopted FASB's new accounting standards for contracts with customers ("Topic 606") and lease accounting rules ("ASC 842"), using retrospective methods.  Adoption requires that prior financial results are recast to reflect the new standards.  Unless otherwise specified, financial results for both the second quarter of 2018 and the second quarter of 2017 are presented in this release under Topic 606 and ASC 842. The financial results for the second quarter of 2017 may differ from those previously reported.

Key Operating Metrics

In the second quarter of 2018, MW deployed increased to 91 MW from 76 MW in the second quarter of 2017, a 20% year-over-year increase.

Creation Cost per watt was $3.12 in the second quarter of 2018 compared to $3.37 in the second quarter of 2017, an improvement of 7% year-over-year. The presentation of Creation Cost for the second quarter of 2017 remains as previously reported, as the calculation due to the adoption of the new accounting standards and the resulting recast financials would have resulted in immaterial changes in the Creation Cost for that period.

NPV per watt in the second quarter of 2018 was $0.98 compared to $1.10 in the second quarter of 2017.

NPV created in the second quarter of 2018 was $77 million, a 4% increase from $74 million in the second quarter of 2017. Project Value per watt was $4.10, compared to $4.47 in the second quarter of 2017.

Gross Earning Assets as of June 30, 2018 were $2.6 billion, up $684 million, or 36% since June 30, 2017. Net Earning Assets as of June 30, 2018 were $1.3 billion, up $195 million, or 18% from the prior year.

Financing Activities

As of August 9, 2018, closed transactions and executed term sheets provide us expected project debt capacity into the first quarter of 2019 and tax equity capacity into the second quarter of 2019.

Second Quarter 2018 GAAP Results

Customer agreements and incentives revenue grew 58% year-over-year to $91.6 million. Solar energy systems and product sales increased 9% year-over-year to $78.9 million. Total revenue grew to $170.5 million in the second quarter of 2018, up $39.9 million, or 31% from the second quarter of 2017.

Total cost of revenue was $122.0 million, an increase of 15% year-over-year. Total operating expenses were $205.5 million, an increase of 20% year-over-year.

Net income available to common stockholders was $7.4 million in the second quarter of 2018, compared to $18.3 million in the second quarter of 2017.

Diluted net earnings per share available to common stockholders was $0.06 per share.

Guidance for Q3 and Full Year 2018

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

In Q3, we expect to deploy approximately 100 MW.

For the full year 2018, we continue to expect deployments to grow 15% year-over-year.

Conference Call Information

Sunrun is hosting a conference call for analysts and investors to discuss its second quarter 2018 results and outlook for its third quarter 2018 at 2:00 p.m. Pacific Time today, August 9, 2018. A live audio webcast of the conference call along with supplemental financial information will be accessible via the "Investor Relations" section of the Company's website at The conference call can also be accessed live over the phone by dialing (877) 470-1078 (domestic) or (615) 247-0087 (international) using ID #7085289. A replay will be available following the call via the Sunrun Investor Relations website or for one week at the following numbers (855) 859-2056 (domestic) or (404) 537-3406 (international) using ID #7085289.

About Sunrun                    

Sunrun (NASDAQ:RUN) is the nation's leading residential solar, storage and energy services company.  With a mission to create a planet run by the sun, Sunrun has led the industry since 2007 with its solar-as-a-service model, which provides clean energy to households with little to no upfront cost and at a saving compared to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the systems, while families receive predictable pricing for 20 years or more. The company also offers a home solar battery service, Sunrun Brightbox, that manages household solar energy, storage and utility power with smart inverter technology. For more information, please visit:

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our market leadership, competitive advantages, investments, market adoption rates, our future financial and operating guidance, operational and financial results such as growth, value creation, MW deployments, gross and net earning assets, project value, estimated creation costs and NPV, and the assumptions related to the calculation of the foregoing metrics, as well as our expectations regarding our growth and financing capacity. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to: the availability of additional financing on acceptable terms; changes in the retail prices of traditional utility generated electricity; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our limited operating history, particularly as a new public company; our ability to attract and retain our relationships with third parties, including our solar partners; our ability to meet the covenants in our investment funds and debt facilities; and such other risks identified in the reports that we file with the U.S. Securities and Exchange Commission, or SEC, from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Consolidated Balance Sheets
(In Thousands)
    June 30, 2018   December 31, 2017
Current assets:        
Cash   $ 215,706     $ 202,525  
Restricted cash   54,549     39,265  
Accounts receivable, net   123,334     112,069  
State tax credits receivable       11,085  
Inventories   81,304     94,427  
Prepaid expenses and other current assets   9,114     9,202  
Total current assets   484,007     468,573  
Restricted cash   148      
Solar energy systems, net   3,437,822     3,161,570  
Property and equipment, net   32,816     36,402  
Intangible assets, net   12,191     14,294  
Goodwill   87,543     87,543  
Other assets   244,841     194,754  
Total assets   $ 4,299,368     $ 3,963,136  
Liabilities and total equity        
Current liabilities:        
Accounts payable   $ 85,104     $ 115,193  
Distributions payable to noncontrolling interests and redeemable noncontrolling interests   15,063     13,583  
Accrued expenses and other liabilities   98,294     97,230  
Deferred revenue, current portion   45,194     42,609  
Deferred grants, current portion   8,173     8,193  
Finance lease obligations, current portion   7,332     7,421  
Non-recourse debt, current portion   24,571     21,529  
Pass-through financing obligation, current portion   38,762     5,387  
Total current liabilities   322.493     311,145  
Deferred revenue, net of current portion   534,848     522,243  
Deferred grants, net of current portion   223,019     227,519  
Finance lease obligations, net of current portion   5,685     5,811  
Recourse debt   247,000     247,000  
Non-recourse debt, net of current portion   1,226,038     1,026,416  
Pass-through financing obligation, net of current portion   221,405     132,823  
Other liabilities   39,691     42,743  
Deferred tax liabilities   103,939     83,119  
Total liabilities   2,924,118     2,598,819  
Redeemable noncontrolling interests   129,929     123,801  
Total stockholders' equity   958,416     881,582  
Noncontrolling interests   286,905     358,934  
Total equity   1,245,321     1,240,516  
Total liabilities, redeemable noncontrolling interests and total equity   $ 4,299,368     $ 3,963,136  

Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
    Three Months Ended June 30,   Six Months Ended June 30,
    2018   2017   2018   2017
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