Sunnova Reports Third Quarter 2021 Financial Results
Sunnova Energy International reported its Q3 2021 results, showing a customer increase of 14,300 to a total of 176,900. Revenue rose to $68.9 million, a $18.7 million year-over-year increase. The net loss decreased to $25.9 million from $73.3 million a year earlier. Sunnova's liquidity remains strong with $951 million available. The company reaffirmed its 2021 guidance while initiating new guidance for 2022, projecting 83,000-87,000 customer additions and Adjusted EBITDA of $117 million-$137 million.
- Customer base increased to 176,900, with 14,300 new customers in Q3 2021.
- Revenue increased by $18.7 million year-over-year to $68.9 million in Q3 2021.
- Net loss reduced to $25.9 million from $73.3 million year-over-year.
- Strong liquidity with $951 million of cash and available liquidity.
- Total operating expenses increased to $77.1 million in Q3 2021, up $28.5 million from the previous year.
- Net cash used in operating activities grew to $36.2 million for Q3 2021 from $18.9 million in the same period last year.
Third Quarter 2021 Highlights
-
Added 14,300 customers in the third quarter, bringing total customer count to 176,900 as of
September 30, 2021 ; -
$951 million September 30, 2021 ; - Single customer economics as expressed through implied spread remain robust; and
- Battery attachment rate continues to recover as supply constraints abate and customers remain focused on resiliency.
"We are pleased to report another quarter of strong results and to initiate our complete 2022 guidance," said
"At Sunnova, we are committed to providing an unparalleled energy experience to our customers. We see brand and service as the critical differentiators in our industry and we are continuing to develop our technological, operational, and logistical capabilities to improve the quality and response time of the energy service we provide. As more equipment manufacturers enter our rapidly growing industry and broaden their equipment offerings, it has become clear that consumers require a service provider who integrates all of the capabilities and technological advancements into a simple, seamless, and integrated energy system that is backed up with quick and efficient service - and that is who Sunnova is. Our vision is to be a wireless power provider and it is our goal to electrify the home for our customers so that they have the freedom to live life uninterrupted."
Third Quarter 2021 Results
Revenue increased to
Total operating expense, net increased to
Adjusted Operating Expense increased to
Sunnova incurred a net loss of
Sunnova incurred a net loss of
Adjusted EBITDA was relatively unchanged at
Customer principal (net of amounts recorded in revenue) and interest payments received from solar loans increased to
Net cash used in operating activities was
Net cash used in the operating activities was
Liquidity & Capital Resources
As of
2021 Guidance
Management reaffirms existing full-year 2021 guidance.
- Customer additions of 55,000 - 58,000 (excluding legacy SunStreet customers);
-
Adjusted EBITDA of
$80 million $85 million -
Customer interest payments received from solar loans of
$28 million $34 million -
Customer principal payments received from solar loans, net of amounts recorded in revenue of
$62 million $68 million
2022 Guidance
Management initiates complete full-year 2022 guidance.
- Customer additions of 83,000 - 87,000;
-
Adjusted EBITDA of
$117 million $137 million -
Customer interest payments received from solar loans of
$45 million $55 million -
Customer principal payments received from solar loans, net of amounts recorded in revenue of
$134 million $154 million
Non-GAAP Financial Measures
We present our operating results in accordance with accounting principles generally accepted in the
Third Quarter 2021 Conference Call Information
Sunnova is hosting a conference call for analysts and investors to discuss its third quarter 2021 results at
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of Sunnova’s website at investors.sunnova.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding our level of growth, customer value propositions, technological developments, service levels, the ability to achieve our 2021 and 2022 operational and financial targets, and references to Adjusted EBITDA and customer P&I payments from solar loans. Sunnova’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, supply chain uncertainties, results of operations and financial position, our competition, changes in regulations applicable to our business, fluctuations in the solar and home-building markets, availability of capital, our ability to attract and retain dealers and customers and manage our dealer and strategic partner relationships, the ability to successfully integrate the SunStreet acquisition, the ability of Sunnova to implement its plans, forecasts and other expectations with respect to SunStreet's business and realize the expected benefits of the acquisition. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova’s filings with the
About Sunnova
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts and share par values) |
|||||||
|
As of
|
|
As of
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
408,156 |
|
|
$ |
209,859 |
|
Accounts receivable—trade, net |
25,440 |
|
|
10,243 |
|
||
Accounts receivable—other |
24,318 |
|
|
21,378 |
|
||
Other current assets, net of allowance of |
259,773 |
|
|
215,175 |
|
||
Total current assets |
717,687 |
|
|
456,655 |
|
||
|
|
|
|
||||
Property and equipment, net |
2,737,619 |
|
|
2,323,169 |
|
||
Customer notes receivable, net of allowance of |
962,497 |
|
|
513,386 |
|
||
Intangible assets, net |
197,763 |
|
|
49 |
|
||
|
13,150 |
|
|
— |
|
||
Other assets |
431,699 |
|
|
294,324 |
|
||
Total assets (1) |
$ |
5,060,415 |
|
|
$ |
3,587,583 |
|
|
|
|
|
||||
Liabilities, Redeemable Noncontrolling Interests and Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
53,612 |
|
|
$ |
39,908 |
|
Accrued expenses |
57,894 |
|
|
34,049 |
|
||
Current portion of long-term debt |
118,589 |
|
|
110,883 |
|
||
Other current liabilities |
33,099 |
|
|
26,014 |
|
||
Total current liabilities |
263,194 |
|
|
210,854 |
|
||
|
|
|
|
||||
Long-term debt, net |
2,932,123 |
|
|
1,924,653 |
|
||
Other long-term liabilities |
372,924 |
|
|
171,395 |
|
||
Total liabilities (1) |
3,568,241 |
|
|
2,306,902 |
|
||
|
|
|
|
||||
Redeemable noncontrolling interests |
142,377 |
|
|
136,124 |
|
||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock, 112,264,654 and 100,412,036 shares issued as of |
11 |
|
|
10 |
|
||
Additional paid-in capital—common stock |
1,600,940 |
|
|
1,482,716 |
|
||
Accumulated deficit |
(505,793) |
|
|
(530,995) |
|
||
Total stockholders' equity |
1,095,158 |
|
|
951,731 |
|
||
Noncontrolling interests |
254,639 |
|
|
192,826 |
|
||
Total equity |
1,349,797 |
|
|
1,144,557 |
|
||
Total liabilities, redeemable noncontrolling interests and equity |
$ |
5,060,415 |
|
|
$ |
3,587,583 |
|
(1) The consolidated assets as of
|
|||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
$ |
68,901 |
|
|
$ |
50,177 |
|
|
$ |
176,733 |
|
|
$ |
122,796 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense: |
|
|
|
|
|
|
|
||||||||
Cost of revenue—depreciation |
19,665 |
|
|
15,113 |
|
|
55,621 |
|
|
42,120 |
|
||||
Cost of revenue—other |
7,342 |
|
|
1,403 |
|
|
13,572 |
|
|
5,315 |
|
||||
Operations and maintenance |
6,035 |
|
|
3,469 |
|
|
14,640 |
|
|
8,614 |
|
||||
General and administrative |
53,372 |
|
|
28,549 |
|
|
144,028 |
|
|
84,575 |
|
||||
Other operating income |
(9,337 |
) |
|
(6 |
) |
|
(5,303 |
) |
|
(28 |
) |
||||
Total operating expense, net |
77,077 |
|
|
48,528 |
|
|
222,558 |
|
|
140,596 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
(8,176 |
) |
|
1,649 |
|
|
(45,825 |
) |
|
(17,800 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
26,588 |
|
|
29,954 |
|
|
84,748 |
|
|
127,804 |
|
||||
Interest income |
(9,098 |
) |
|
(5,999 |
) |
|
(24,266 |
) |
|
(17,299 |
) |
||||
Loss on extinguishment of long-term debt, net |
— |
|
|
50,721 |
|
|
9,824 |
|
|
50,721 |
|
||||
Other (income) expense |
189 |
|
|
91 |
|
|
60 |
|
|
(175 |
) |
||||
Loss before income tax |
(25,855 |
) |
|
(73,118 |
) |
|
(116,191 |
) |
|
(178,851 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
64 |
|
|
176 |
|
|
64 |
|
|
176 |
|
||||
Net loss |
(25,919 |
) |
|
(73,294 |
) |
|
(116,255 |
) |
|
(179,027 |
) |
||||
Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests |
1,622 |
|
|
(9,113 |
) |
|
7,665 |
|
|
(18,513 |
) |
||||
Net loss attributable to stockholders |
$ |
(27,541 |
) |
|
$ |
(64,181 |
) |
|
$ |
(123,920 |
) |
|
$ |
(160,514 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.73 |
) |
|
$ |
(1.12 |
) |
|
$ |
(1.88 |
) |
Weighted average common shares outstanding—basic and diluted |
112,159,698 |
|
|
87,768,712 |
|
|
110,185,333 |
|
|
85,276,841 |
|
||||
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
|||||||
|
Nine Months Ended
|
||||||
|
2021 |
|
2020 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
||||
Net loss |
$ |
(116,255 |
) |
|
$ |
(179,027 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation |
62,286 |
|
|
47,811 |
|
||
Impairment and loss on disposals, net |
3,522 |
|
|
1,768 |
|
||
Amortization of intangible assets |
14,111 |
|
|
22 |
|
||
Amortization of deferred financing costs |
11,556 |
|
|
6,781 |
|
||
Amortization of debt discount |
8,231 |
|
|
12,205 |
|
||
Non-cash effect of equity-based compensation plans |
13,937 |
|
|
8,389 |
|
||
Non-cash payment-in-kind interest on loan |
— |
|
|
780 |
|
||
Unrealized (gain) loss on derivatives |
(5,574 |
) |
|
2,755 |
|
||
Unrealized gain on fair value instruments |
(4,665 |
) |
|
(165 |
) |
||
Loss on extinguishment of long-term debt, net |
9,824 |
|
|
50,721 |
|
||
Other non-cash items |
12,622 |
|
|
10,544 |
|
||
Changes in components of operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
(27,194 |
) |
|
(2,785 |
) |
||
Other current assets |
(99,731 |
) |
|
(10,688 |
) |
||
Other assets |
(41,404 |
) |
|
(32,541 |
) |
||
Accounts payable |
(5,226 |
) |
|
(3,274 |
) |
||
Accrued expenses |
19,923 |
|
|
(8,566 |
) |
||
Other current liabilities |
(1,617 |
) |
|
(2,781 |
) |
||
Other long-term liabilities |
(1,193 |
) |
|
(3,745 |
) |
||
Net cash used in operating activities |
(146,847 |
) |
|
(101,796 |
) |
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
||||
Purchases of property and equipment |
(344,044 |
) |
|
(439,855 |
) |
||
Payments for investments and customer notes receivable |
(553,475 |
) |
|
(180,725 |
) |
||
Proceeds from customer notes receivable |
47,300 |
|
|
25,028 |
|
||
State utility rebates and tax credits |
418 |
|
|
327 |
|
||
Other, net |
2,620 |
|
|
950 |
|
||
Net cash used in investing activities |
(847,181 |
) |
|
(594,275 |
) |
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from long-term debt |
1,890,185 |
|
|
1,182,912 |
|
||
Payments of long-term debt |
(815,710 |
) |
|
(667,670 |
) |
||
Payments on notes payable |
(34,555 |
) |
|
(3,017 |
) |
||
Payments of deferred financing costs |
(27,031 |
) |
|
(18,317 |
) |
||
Payments of debt discounts |
(2,324 |
) |
|
(3,132 |
) |
||
Purchase of capped call transactions |
(91,655 |
) |
|
— |
|
||
Proceeds from issuance of common stock, net |
9,911 |
|
|
4,269 |
|
||
Proceeds from equity component of debt instrument, net |
— |
|
|
73,657 |
|
||
Contributions from redeemable noncontrolling interests and noncontrolling interests |
226,432 |
|
|
197,360 |
|
||
Distributions to redeemable noncontrolling interests and noncontrolling interests |
(10,407 |
) |
|
(4,484 |
) |
||
Payments of costs related to redeemable noncontrolling interests and noncontrolling interests |
(8,159 |
) |
|
(4,108 |
) |
||
Other, net |
(283 |
) |
|
(1 |
) |
||
Net cash provided by financing activities |
1,136,404 |
|
|
757,469 |
|
||
Net increase in cash and restricted cash |
142,376 |
|
|
61,398 |
|
||
Cash and restricted cash at beginning of period |
377,893 |
|
|
150,291 |
|
||
Cash and restricted cash at end of period |
520,269 |
|
|
211,689 |
|
||
Restricted cash included in other current assets |
(52,042 |
) |
|
(54,096 |
) |
||
Restricted cash included in other assets |
(60,071 |
) |
|
(72,958 |
) |
||
Cash at end of period |
$ |
408,156 |
|
|
$ |
84,635 |
|
|
|||||||||||||||
Key Financial and Operational Metrics |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands) |
||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(25,919 |
) |
|
$ |
(73,294 |
) |
|
$ |
(116,255 |
) |
|
$ |
(179,027 |
) |
Interest expense, net |
26,588 |
|
|
29,954 |
|
|
84,748 |
|
|
127,804 |
|
||||
Interest income |
(9,098 |
) |
|
(5,999 |
) |
|
(24,266 |
) |
|
(17,299 |
) |
||||
Income tax expense |
64 |
|
|
176 |
|
|
64 |
|
|
176 |
|
||||
Depreciation expense |
21,961 |
|
|
16,997 |
|
|
62,286 |
|
|
47,811 |
|
||||
Amortization expense |
7,204 |
|
|
8 |
|
|
14,362 |
|
|
24 |
|
||||
EBITDA |
20,800 |
|
|
(32,158 |
) |
|
20,939 |
|
|
(20,511 |
) |
||||
Non-cash compensation expense |
3,093 |
|
|
2,345 |
|
|
13,937 |
|
|
8,389 |
|
||||
ARO accretion expense |
745 |
|
|
564 |
|
|
2,094 |
|
|
1,577 |
|
||||
Financing deal costs |
480 |
|
|
1,819 |
|
|
837 |
|
|
3,506 |
|
||||
Natural disaster losses and related charges, net |
— |
|
|
— |
|
|
— |
|
|
31 |
|
||||
Acquisition costs |
1,565 |
|
|
— |
|
|
7,053 |
|
|
— |
|
||||
Loss on extinguishment of long-term debt, net |
— |
|
|
50,721 |
|
|
9,824 |
|
|
50,721 |
|
||||
Unrealized (gain) loss on fair value instruments |
(8,834 |
) |
|
91 |
|
|
(4,665 |
) |
|
(165 |
) |
||||
Amortization of payments to dealers for exclusivity and other bonus arrangements |
832 |
|
|
488 |
|
|
2,089 |
|
|
1,235 |
|
||||
Provision for current expected credit losses |
6,567 |
|
|
1,544 |
|
|
15,032 |
|
|
4,824 |
|
||||
Non-cash inventory impairments |
— |
|
|
— |
|
|
982 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
25,248 |
|
|
$ |
25,414 |
|
|
$ |
68,122 |
|
|
$ |
49,607 |
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands) |
||||||||||||||
Interest income from customer notes receivable |
$ |
8,904 |
|
|
$ |
5,939 |
|
|
$ |
23,863 |
|
|
$ |
16,879 |
|
Principal proceeds from customer notes receivable, net of related revenue |
$ |
14,333 |
|
|
$ |
9,185 |
|
|
$ |
42,408 |
|
|
$ |
23,104 |
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands, except per system data) |
||||||||||||||
Reconciliation of Total Operating Expense, Net to Adjusted Operating Expense: |
|
|
|
|
|
|
|
||||||||
Total operating expense, net |
$ |
77,077 |
|
|
$ |
48,528 |
|
|
$ |
222,558 |
|
|
$ |
140,596 |
|
Depreciation expense |
(21,961 |
) |
|
(16,997 |
) |
|
(62,286 |
) |
|
(47,811 |
) |
||||
Amortization expense |
(7,204 |
) |
|
(8 |
) |
|
(14,362 |
) |
|
(24 |
) |
||||
Non-cash compensation expense |
(3,093 |
) |
|
(2,345 |
) |
|
(13,937 |
) |
|
(8,389 |
) |
||||
ARO accretion expense |
(745 |
) |
|
(564 |
) |
|
(2,094 |
) |
|
(1,577 |
) |
||||
Financing deal costs |
(480 |
) |
|
(1,819 |
) |
|
(837 |
) |
|
(3,506 |
) |
||||
Natural disaster losses and related charges, net |
— |
|
|
— |
|
|
— |
|
|
(31 |
) |
||||
Acquisition costs |
(1,565 |
) |
|
— |
|
|
(7,053 |
) |
|
— |
|
||||
Amortization of payments to dealers for exclusivity and other bonus arrangements |
(832 |
) |
|
(488 |
) |
|
(2,089 |
) |
|
(1,235 |
) |
||||
Provision for current expected credit losses |
(6,567 |
) |
|
(1,544 |
) |
|
(15,032 |
) |
|
(4,824 |
) |
||||
Non-cash inventory impairments |
— |
|
|
— |
|
|
(982 |
) |
|
— |
|
||||
Direct sales costs |
(310 |
) |
|
— |
|
|
(358 |
) |
|
— |
|
||||
Cost of revenue related to cash sales |
(4,591 |
) |
|
— |
|
|
(8,413 |
) |
|
— |
|
||||
Unrealized gain on fair value instruments |
9,023 |
|
|
— |
|
|
4,725 |
|
|
— |
|
||||
Adjusted Operating Expense |
$ |
38,752 |
|
|
$ |
24,763 |
|
|
$ |
99,840 |
|
|
$ |
73,199 |
|
Adjusted Operating Expense per weighted average system |
$ |
227 |
|
|
$ |
261 |
|
|
$ |
689 |
|
|
$ |
827 |
|
|
As of
|
|
As of
|
||
Number of customers |
176,900 |
|
|
107,500 |
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Weighted average number of systems (excluding loan agreements and cash sales) |
140,600 |
|
|
80,200 |
|
|
119,700 |
|
|
75,200 |
|
Weighted average number of systems with loan agreements |
29,400 |
|
|
14,800 |
|
|
24,900 |
|
|
13,300 |
|
Weighted average number of systems with cash sales |
700 |
|
|
— |
|
|
300 |
|
|
— |
|
Weighted average number of systems |
170,700 |
|
|
95,000 |
|
|
144,900 |
|
|
88,500 |
|
|
As of
|
|
As of
|
||||
|
(in millions, except per customer data) |
||||||
Estimated gross contracted customer value |
$ |
3,785 |
|
|
$ |
2,997 |
|
Key Terms for Our Key Metrics and Non-GAAP Financial Measures
Estimated Gross Contracted Customer Value. Estimated gross contracted customer value as of a specific measurement date represents the sum of the present value of the remaining estimated future net cash flows we expect to receive from existing customers during the initial contract term of our leases and power purchase agreements ("PPAs"), which are typically 25 years in length, plus the present value of future net cash flows we expect to receive from the sale of related solar renewable energy certificates ("SRECs"), either under existing contracts or in future sales, plus the cash flows we expect to receive from energy services programs such as grid services, plus the carrying value of outstanding customer loans on our balance sheet. From these aggregate estimated initial cash flows, we subtract the present value of estimated net cash distributions to redeemable noncontrolling interests and noncontrolling interests and estimated operating, maintenance and administrative expenses associated with the solar service agreements. These estimated future cash flows reflect the projected monthly customer payments over the life of our solar service agreements and depend on various factors including but not limited to solar service agreement type, contracted rates, expected sun hours and the projected production capacity of the solar equipment installed. For the purpose of calculating this metric, we discount all future cash flows at
Number of Customers. We define number of customers to include every unique individual possessing an in-service product that is subject to a Sunnova lease, PPA or loan agreement, or with respect to which Sunnova is obligated to perform a service under an active agreement between Sunnova and the individual or between Sunnova and a third party. For all solar energy systems installed by us, in-service means the related solar energy system and, if applicable, energy storage system, must have met all the requirements to begin operation and be interconnected to the electrical grid. For all products other than solar energy systems or energy storage systems, which are subject to a loan agreement between Sunnova and a customer, in-service means the customer is obligated to begin making payments to Sunnova under the loan agreement. We do not include in our number of customers any customer possessing a solar energy system or energy storage system under a lease, PPA or loan agreement that has reached mechanical completion but has not received permission to operate from the local utility or for whom we have terminated the contract and removed the solar energy system. We also do not include in our number of customers any customer that has been in default under his or her lease, PPA or loan agreement in excess of six months. We track the total number of customers as an indicator of our historical growth and our rate of growth from period to period.
Weighted Average Number of Systems. We calculate the weighted average number of systems based on the number of months a customer and any additional service obligation related to a solar energy system is in-service during a given measurement period. The weighted average number of systems reflects the number of systems at the beginning of a period, plus the total number of new systems added in the period adjusted by a factor that accounts for the partial period nature of those new systems. For purposes of this calculation, we assume all new systems added during a month were added in the middle of that month. The number of systems for any end of period will exceed the number of customers, as defined above, for that same end of period as we are also including the additional services and/or contracts a customer or third party executed for the additional work for the same residence. We track the weighted average system count in order to accurately reflect the contribution of the appropriate number of systems to key financial metrics over the measurement period.
Definitions of Non-GAAP Measures
Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) plus net interest expense, depreciation and amortization expense, income tax expense, financing deal costs, natural disaster losses and related charges, net, losses on extinguishment of long-term debt, realized and unrealized gains and losses on fair value instruments, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, costs of our initial public offering ("IPO"), acquisition costs, losses on unenforceable contracts and other non-cash items such as non-cash compensation expense, asset retirement obligation ("ARO") accretion expense, provision for current expected credit losses and non-cash inventory impairments.
Adjusted Operating Expense. We define Adjusted Operating Expense as total operating expense less depreciation and amortization expense, financing deal costs, natural disaster losses and related charges, net, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements, direct sales costs, cost of revenue related to cash sales, unrealized losses on fair value instruments and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, costs of our IPO, acquisition costs, losses on unenforceable contracts and other non-cash items such as non-cash compensation expense, ARO accretion expense, provision for current expected credit losses and non-cash inventory impairments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006071/en/
Investor Relations:
IR@sunnova.com
877-770-5211
Media:
Alina Eprimian, Media Relations Manager
Alina.Eprimian@sunnova.com
Source:
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