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Spruce Power Reports Second Quarter 2024 Results

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Spruce Power Holding (NYSE: SPRU) reported its Q2 2024 financial results, with revenues of $22.5 million, a net loss of $8.6 million, and Operating EBITDA of $14.4 million. The company ended the quarter with $116.6 million in unrestricted cash. Spruce refinanced its SP4 Facility, injecting over $6 million of incremental capital. The company maintains its 2024 guidance for Operating EBITDA of $68-$86 million and Adjusted Free Cash Flow of $0-$5 million, trending towards the lower end. Spruce owns cash flows from approximately 75,000 home solar assets across 18 U.S. states, with an average remaining contract life of 11 years. The company's Gross Portfolio Value was $778.0 million as of June 30, 2024.

Spruce Power Holding (NYSE: SPRU) ha riportato i risultati finanziari del Q2 2024, con ricavi di $22,5 milioni, una perdita netta di $8,6 milioni e un EBITDA operativo di $14,4 milioni. L'azienda ha chiuso il trimestre con $116,6 milioni di liquidità non vincolata. Spruce ha rifinanziato il suo impianto SP4, iniettando oltre $6 milioni di capitale aggiuntivo. L'azienda mantiene le previsioni per il 2024 di un EBITDA operativo compreso tra $68-$86 milioni e un flusso di cassa libero rettificato da $0-$5 milioni, tendendo verso il limite inferiore. Spruce possiede flussi di cassa da circa 75.000 impianti solari domestici in 18 stati americani, con una vita media residua del contratto di 11 anni. Il valore lordo del portafoglio dell'azienda era di $778,0 milioni al 30 giugno 2024.

Spruce Power Holding (NYSE: SPRU) reportó sus resultados financieros del Q2 2024, con ingresos de $22.5 millones, una pérdida neta de $8.6 millones y un EBITDA operativo de $14.4 millones. La empresa cerró el trimestre con $116.6 millones en efectivo no restringido. Spruce refinanció su instalación SP4, inyectando más de $6 millones de capital adicional. La empresa mantiene su guía para 2024 de un EBITDA operativo de entre $68-$86 millones y un flujo de caja libre ajustado de entre $0-$5 millones, con tendencia hacia el extremo inferior. Spruce posee flujos de efectivo de aproximadamente 75,000 activos solares residenciales en 18 estados de EE. UU., con una vida media de contrato restante de 11 años. El valor bruto de la cartera de la empresa era de $778.0 millones al 30 de junio de 2024.

Spruce Power Holding (NYSE: SPRU)는 2024년 2분기 재무 결과를 보고했으며, 수익은 $2250만, 순손실은 $860만, 운영 EBITDA는 $1440만입니다. 회사는 제한 없는 현금으로 $1억1660만을 보유한 상태로 분기를 종료했습니다. Spruce는 SP4 시설을 재융자하여 $600만 이상의 추가 자본을 주입했습니다. 회사는 운영 EBITDA에 대한 2024년 지침을 $6800만에서 $8600만으로 유지하고 있으며, 조정된 자유 현금 흐름은 $0에서 $500만으로 하향 추세를 보이고 있습니다. Spruce는 11년의 평균 계약 잔여 기간을 가지고 있는 18개 주에서 약 75,000개의 주택 태양광 자산의 현금 흐름을 소유하고 있습니다. 회사의 총 포트폴리오 가치는 2024년 6월 30일 기준으로 $7억7800만이었습니다.

Spruce Power Holding (NYSE: SPRU) a annoncé ses résultats financiers du 2ème trimestre 2024, avec des revenus de 22,5 millions de dollars, une perte nette de 8,6 millions de dollars et un EBITDA opérationnel de 14,4 millions de dollars. L'entreprise a terminé le trimestre avec 116,6 millions de dollars de liquidités non restreintes. Spruce a refinancé son installation SP4, injectant plus de 6 millions de dollars de capital supplémentaire. L'entreprise maintient ses prévisions pour 2024 d'un EBITDA opérationnel de 68-86 millions de dollars et d'un flux de trésorerie libre ajusté de 0-5 millions de dollars, tendant vers le bas. Spruce possède des flux de trésorerie provenant d'environ 75 000 actifs solaires résidentiels dans 18 états des États-Unis, avec une durée de contrat restante moyenne de 11 ans. La valeur brute du portefeuille de l'entreprise était de 778,0 millions de dollars au 30 juin 2024.

Spruce Power Holding (NYSE: SPRU) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht, mit Einnahmen von 22,5 Millionen US-Dollar, einem Nettoverlust von 8,6 Millionen US-Dollar und einem operativen EBITDA von 14,4 Millionen US-Dollar. Das Unternehmen schloss das Quartal mit 116,6 Millionen US-Dollar an nicht eingeschränkten Barmitteln ab. Spruce hat seine SP4-Anlage refinanziert und über 6 Millionen US-Dollar zusätzliches Kapital eingespritzt. Das Unternehmen hält an seiner Prognose für 2024 fest, die ein operatives EBITDA von 68-86 Millionen US-Dollar und einen bereinigten freien Cashflow von 0-5 Millionen US-Dollar vorsieht, mit einer Neigung zum unteren Ende. Spruce besitzt Cashflows aus etwa 75.000 Wohn-Solaranlagen in 18 US-Bundesstaaten mit einer durchschnittlichen verbleibenden Vertragslaufzeit von 11 Jahren. Der Bruttoportfolio-Wert des Unternehmens betrug am 30. Juni 2024 778,0 Millionen US-Dollar.

Positive
  • Strong liquidity position with $116.6 million in unrestricted cash
  • Refinanced SP4 Facility, providing over $6 million in incremental capital
  • Owns cash flows from 75,000 home solar assets across 18 U.S. states
  • Gross Portfolio Value of $778.0 million as of June 30, 2024
Negative
  • Net loss of $8.6 million for Q2 2024
  • Slight decrease in revenues from $22.8 million in Q2 2023 to $22.5 million in Q2 2024
  • Increase in core operating expenses from $19.0 million in Q2 2023 to $21.1 million in Q2 2024
  • Guidance trending towards the lower end of projected ranges
  • Higher than expected operating expenses due to CEO transition costs and legal expenses

Insights

Spruce Power's Q2 2024 results show a mixed financial picture. Revenues of $22.5 million represent a slight decrease from the previous year, primarily due to lower SREC revenues. The company reported a net loss of $8.6 million, which is concerning. However, the Operating EBITDA of $14.4 million indicates underlying operational strength.

The company's liquidity position remains strong with $116.6 million in unrestricted cash, providing a solid foundation for future growth initiatives. The recent refinancing of the SP4 Facility, injecting over $6 million of capital, demonstrates proactive financial management.

Investors should note the company's maintained guidance for 2024, albeit trending towards the lower end. This, coupled with higher operating expenses due to unforeseen costs, suggests potential challenges ahead. The company's focus on M&A opportunities and organic growth through Spruce Pro could be key drivers for future performance.

The solar energy market continues to show promise, with Spruce Power benefiting from accelerating consumer preference for solar leases and PPAs. This trend supports the company's M&A-focused customer acquisition strategy and third-party servicing offerings.

Spruce's portfolio of approximately 75,000 home solar assets across 18 U.S. states provides a diverse and stable revenue base. The average remaining contract life of 11 years ensures long-term cash flow visibility. However, the slight decrease in home solar assets compared to previous projections warrants attention.

The company's expansion into servicing third-party owned systems (4,500 as of Q2 2024) represents a strategic move to diversify revenue streams. This could prove valuable in a competitive market landscape. Investors should monitor the growth of this segment as an indicator of Spruce's market positioning and adaptability.

From a legal perspective, Spruce Power's Q2 2024 report raises a few points of interest. The mention of increased legal expenses associated with a proxy contest that led to a cooperation agreement suggests potential corporate governance challenges. While the resolution through a cooperation agreement is positive, investors should remain vigilant about ongoing corporate governance practices.

The company's debt structure, consisting entirely of non-recourse project finance loans, provides a layer of protection for the parent company. However, the total principal amount of $640.0 million with a 5.9% blended interest rate represents a significant financial obligation that requires careful management.

The ongoing share repurchase program, with $44.7 million remaining authorization, demonstrates confidence but also requires careful consideration of legal and financial implications, especially given the company's current net loss position.

DENVER--(BUSINESS WIRE)-- Spruce Power Holding Corporation (NYSE: SPRU) (“Spruce” or the “Company”), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the second quarter ended June 30, 2024.

Business Highlights

  • Reported 2Q revenues of $22.5 million, net loss attributable to stockholders of $8.6 million and Operating EBITDA of $14.4 million.
  • Ended quarter with strong liquidity position for future growth, with $116.6 million of unrestricted cash.
  • Continued to evaluate a pipeline of both operating residential solar portfolio M&A opportunities and organic growth prospects through Spruce Pro.
  • Refinanced nearest maturing debt facility, the SP4 Facility, providing for a net injection of incremental capital into the Company of over $6 million.

Management Commentary and Outlook

"In the second quarter, our owner-operator platform delivered solid performance, backed by reliable, long-term cash flows from approximately 75,000 home solar assets and contracts. We exited the quarter with substantial liquidity of over $100 million of unrestricted cash to pursue our burgeoning growth opportunity set," said Chris Hayes, Spruce’s Chief Executive Officer.

Hayes continued, "The fundamentals of our business have never been stronger as consumer preference for solar leases and power purchase agreements (PPAs) continues to accelerate. This dynamic creates a strong tailwind for our M&A focused customer acquisition strategy and third-party servicing offerings through Spruce Pro. We are focused on disciplined execution and driving positive inflection in our platform's free cash flow generation."

Consolidated Financial Results

Revenues totaled $22.5 million for the second quarter of 2024, compared to $22.8 million for the second quarter of 2023. The decrease was primarily due to lower solar renewable energy credit (SREC) revenues during the three months ended June 30, 2024.

Core operating expenses (excluding depreciation), including both selling, general & administrative expenses ("SG&A") and operations & maintenance, were $21.1 million for the second quarter of 2024, up from $19.0 million for the second quarter of 2023. The increase was primarily due to higher compensation expenses of $2.2 million, which included one-time severance costs of $1.9 million recognized upon the separation of the former Chief Executive Officer in the second quarter of 2024.

Net loss attributable to stockholders was $8.6 million for the second quarter of 2024.

Management considers Operating EBITDA a key measure in evaluating Spruce's operating performance. For the second quarter of 2024, Operating EBITDA was $14.4 million.

Balance Sheet and Liquidity

The Company's total principal amount of outstanding debt as of June 30, 2024, was $640.0 million with a blended interest rate of 5.9%, including the impact of hedge arrangements. All debt consists of project finance loans that are non-recourse to the Company itself.

Total cash as of June 30, 2024, was $150.2 million, including cash and cash equivalents of $116.6 million and restricted cash of $33.6 million. Cash and cash equivalents decreased from $120.6 million as of March 31, 2024. The decrease is primarily attributable to higher operations and maintenance expenditures, partially offset by net cash proceeds associated with the refinance of the Company's SP4 Facility.

2024 Guidance

Spruce Power maintains its guidance for 2024 Operating EBITDA in the range of $68 - $86 million and 2024 Adjusted Free Cash Flow in the range of $0 - $5 million, with current expectations trending to the lower end of the ranges.

While Spruce's M&A pipeline continued to grow, home solar assets and contracts at the end of the second quarter were lower than the assumptions underlying the Company's previously disclosed full year 2024 guidance, which contemplated growth in home solar assets and contracts via M&A activity during the first half of the year. Further, operating expenses have been higher than initially projected given unforeseen CEO transition costs, an increase in legal expenses associated with the proxy contest, that ultimately led to the Company entering a cooperation agreement, and timing of non-routine operations and maintenance expenditures.

Growth and Capital Allocation

Spruce is committed to maximizing long-term value for our shareholders through a disciplined approach that includes strategic acquisitions, capital expenditure projects, debt repayment, and shareholder return initiatives.

During the second quarter of 2024, the Company continued to evaluate a pipeline of both operating residential solar portfolio M&A opportunities and organic growth prospects through Spruce Pro.

In June 2024, the Company closed on a new $130 million non-recourse debt facility, refinancing the Company's previous term loan of $125 million (the "SP4 Facility"). The refinancing transaction provided for an injection of incremental capital into the Company of over $6 million, net of fees and inclusive of positive value realized in the termination of interest rate swaps underlying the previous term loan.

There were no common stock repurchases made during the second quarter of 2024. There was $44.7 million remaining under the Company's authorized $50.0 million common share repurchase program as of June 30, 2024. The Company will continue to assess common stock repurchases on a quarterly basis with its Board of Directors.

Key Operating Metrics

As of June 30, 2024, Spruce owned cash flows from approximately 75,000 home solar assets and contracts across 18 U.S. States with an average remaining contract life of approximately 11 years. Combined portfolio generation for the second quarter ended June 30, 2024, was approximately 133 thousand MWh of power. In addition, the Company also serviced approximately 4,500 third-party owned home solar systems and third-party loans as of June 30, 2024. Gross Portfolio Value, on a PV6 basis as described below, was $778.0 million as of June 30, 2024.

Conference Call Information

The Spruce management team will host a conference call for analysts and investors to discuss its second quarter 2024 financial results and business outlook today at 2:30 p.m. Mountain Time. The conference call can be accessed live over the telephone by dialing (888) 596-4144 and referencing Conference ID 6052195. Alternatively, the call can be accessed via a live webcast accessible on the Events & Presentations page in the Investor Relations section of the Company’s website at https://investors.sprucepower.com/overview/default.aspx. An audio replay will be available shortly after the call and can be accessed by dialing (800) 770-2030. The passcode for the replay is 6052195. The replay will be available until August 28, 2024.

About Spruce Power

Spruce Power is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to benefit from rooftop solar power and battery storage. Our power as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our Company owns the cash flows from approximately 75,000 home solar assets and contracts across the United States. For additional information, please visit www.sprucepower.com.

Forward Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements can be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intends,” “may,” “opportunity,” “plans,” “goals,” “target,” “predict,” “potential,” “estimate,” “should,” “will,” “would,” “continue,” “likely” or the negative of these terms or other words of similar meaning. These statements are based upon our current plans and strategies and reflect our current assessment of the risks and uncertainties. Forward-looking statements in this release include statements regarding 2024 guidance, potential future acquisitions and debt reductions, and the Company's prospects for long-term growth in revenues, business cash inflows and earnings. Repurchases under the stock repurchase program will depend upon market prices, trading volume, available cash and other factors, and therefore, there is no guarantee as to the number of shares that may be purchased. These statements are based on various assumptions, whether or not identified in this press release and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to: expectations regarding the growth of the solar industry and home electrification; the ability to identify and complete future acquisitions; the ability to develop and market new products and services; the effects of pending and future legislation; the highly competitive nature of the Company’s business and markets; the ability to execute on and consummate business plans in anticipated time frames; litigation, complaints, product liability claims, government investigations and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company’s products and services; the introduction of new technologies; the impact of natural disasters and other events beyond our control, such as hurricanes, wildfires or pandemics, on the Company’s business, results of operations, financial condition, regulatory compliance and customer experience; privacy and data protection laws, privacy or data breaches, or the loss of data; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; risks related to the rollout of the Company’s business and the timing of expected business milestones; the effects of competition on the Company’s future business; the availability of capital; and the other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 9, 2024, subsequent Quarterly and Annual Reports on Form 10-Q and Form 10-K, respectively, and other documents that the Company files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company specifically disclaims any obligation to update these forward-looking statements.

Use of Non-GAAP Financial Information

This press release includes references to certain non-GAAP financial measures. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to, the GAAP financial measures presented in this press release, our financial statements, and other publicly filed reports. This prospective financial information was not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information or U.S. GAAP with respect to forward-looking financial information. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.

Definitions of Non-GAAP Financial Information

Earnings (Loss) Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”):

We define EBITDA as our consolidated net income (loss) and adding back interest expense, net, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information to the performance of our business and therefore we use it to supplement our GAAP reporting. We believe that Adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year-to-year results, and is representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segment. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.

Operating EBITDA:

We define Operating EBITDA as Adjusted EBITDA plus proceeds from investment in lease agreement, net, proceeds from buyouts / prepayments and interest earned on cash investments. Proceeds from investment in lease agreement, net, represent cash flows from the Company's Spruce Power 4 Portfolio, which holds the 20-year use rights to customer payment streams of approximately 22,500 solar lease and power purchase agreements, net of servicing costs. Proceeds from buyouts / prepayments represent cash inflows from the early buyout of customer solar contracts and cash inflows from the prepayment of customer solar contracts. Interest earned on cash investments represent cash interest received on investments in money market funds / U.S. Treasury securities.

Adjusted Free Cash Flow:

We define Adjusted Free Cash Flow as Operating EBITDA less project finance debt service, platform capital expenditures, and other non-cash items. Project finance debt service represents principal and interest payments, including sweeps where applicable, on Spruce's non-recourse, project finance debt facilities. Other non-cash items represent miscellaneous non-cash income or expense associated with our various operating portfolios of residential solar assets.

Portfolio Value Metrics:

We believe Portfolio Value Metrics are helpful to management, investors, and analysts to understand the value of our business and to evaluate the estimated remaining value of our customer contracts, including present value implied from future, uncontracted sales of solar renewable energy credits generated from assets that the Company owns today.

  • Gross Portfolio Value reflects the remaining projected net cash flows from current customers discounted at 6% (“PV6”)
  • Projected cash flows include the customer’s initial agreement plus renewal

($ in millions)

As of June 30,
2024

Contracted Portfolio Value (1)

$

701

Renewal Portfolio Value (2)

 

61

Uncontracted Renewable Energy Credits (3)

 

16

Gross Portfolio Value (4)

$

778

(1) Contracted Portfolio Value represents the present value of the remaining net cash flows discounted at 6% per annum during the initial term of the Company’s customer agreements as of the measurement date. It is calculated as the present value of cash flows discounted at 6% that the Company expects to receive from customers in future periods as set forth in customer agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to third-party project equity investors. The calculation includes cash flows the Company expects to receive in future periods from state incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities or grid operators.

(2) Renewal Portfolio Value is the forecasted net present value the Company would receive upon or following the expiration of the initial customer agreement term, but before the 30th anniversary of the system’s activation in the form of cash payments during any applicable renewal period for customers as of the measurement date. The Company calculates the Renewal Portfolio Value amount at the expiration of the initial contract term assuming that, on average, Spruce's customers choose to renew 50% of the time at a contract rate representing a 35% discount to the contract rate in effect at the end of the initial contract term, for a term of 7-years.

(3) Uncontracted sales of SRECs based on forward market REC pricing curves, adjusted for liquidity discounts.

(4) Gross Portfolio Value represents the sum of Contracted Portfolio Value, Renewal Portfolio Value and Uncontracted SRECs.

Spruce Power Holding Corporation
Condensed Consolidated Statements of Operations (Unaudited)
For the Three Months Ended June 30, 2024 and 2023

 

 

Three Months Ended June 30,

(In thousands, except per share and share amounts)

 

2024

 

 

 

2023

 

 

 

 

 

Revenues

$

22,481

 

 

$

22,813

 

Operating expenses:

 

 

 

Cost of revenues

 

10,139

 

 

 

8,594

 

Selling, general and administrative expenses

 

16,701

 

 

 

15,985

 

Gain on asset disposal

 

(999

)

 

 

(794

)

Total operating expenses

 

25,841

 

 

 

23,785

 

Loss from operations

 

(3,360

)

 

 

(972

)

Other (income) expense:

 

 

 

Interest income

 

(5,257

)

 

 

(3,240

)

Interest expense, net

 

7,591

 

 

 

10,456

 

Change in fair value of warrant liabilities

 

(6

)

 

 

(33

)

Change in fair value of interest rate swaps

 

3,234

 

 

 

(9,190

)

Other income, net

 

(130

)

 

 

(752

)

Net income (loss) from continuing operations

 

(8,792

)

 

 

1,787

 

Net income (loss) from discontinued operations

 

219

 

 

 

(183

)

Net income (loss)

 

(8,573

)

 

 

1,604

 

Less: Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests

 

5

 

 

 

(1,461

)

Net income (loss) attributable to stockholders

$

(8,578

)

 

$

3,065

 

Net income (loss) from continuing operations per share, basic

$

(0.46

)

 

$

0.10

 

Net income (loss) from continuing operations per share, diluted

$

(0.46

)

 

$

0.09

 

Net income (loss) from discontinued operations per share, basic

$

0.01

 

 

$

(0.01

)

Net income (loss) from discontinued operations per share, diluted

$

0.01

 

 

$

(0.01

)

Net income (loss) attributable to stockholders per share, basic

$

(0.45

)

 

$

0.16

 

Net income (loss) attributable to stockholders per share, diluted

$

(0.45

)

 

$

0.15

 

Weighted-average shares outstanding, basic

 

19,271,954

 

 

 

18,611,757

 

Weighted-average shares outstanding, diluted

 

19,271,954

 

 

 

20,200,832

 

Spruce Power Holding Corporation
Reconciliation of Non-GAAP Financial Measures
For the Three Months Ended June 30, 2024 and 2023

 

 

Three Months Ended June 30,

(In thousands)

 

2024

 

 

 

2023

 

Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Operating EBITDA

 

 

 

Net income (loss) attributable to stockholders

$

(8,578

)

 

$

3,065

 

Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests

 

5

 

 

 

(1,461

)

Interest income

 

(5,257

)

 

 

(3,240

)

Interest expense, net

 

7,591

 

 

 

10,456

 

Depreciation and amortization

 

4,978

 

 

 

4,647

 

EBITDA

 

(1,261

)

 

 

13,467

 

Net (income) loss from discontinued operations

 

(219

)

 

 

183

 

Restructuring charges

 

 

 

 

293

 

Legal charges related to SEC investigation and shareholder lawsuits

 

879

 

 

 

3,083

 

Gain on asset disposal

 

(999

)

 

 

(794

)

Change in fair value of interest rate swaps

 

3,234

 

 

 

(9,190

)

Meter upgrade campaign

 

431

 

 

 

1,122

 

Other one-time costs

 

2,432

 

 

 

969

 

Change in fair value warrant liabilities

 

(6

)

 

 

(33

)

Stock based compensation

 

549

 

 

 

755

 

Bad debt expense

 

302

 

 

 

930

 

Accretion expense

 

60

 

 

 

 

Non-recurring acquisition/divestment expenses

 

 

 

 

446

 

Adjusted EBITDA

 

5,402

 

 

 

11,231

 

Proceeds from investment in lease agreement, net

 

5,637

 

 

 

3,695

 

Proceeds from buyouts / prepayments

 

1,902

 

 

 

1,943

 

Interest earned on cash investments

 

1,502

 

 

 

2,054

 

Operating EBITDA

$

14,443

 

 

$

18,923

 

Spruce Power Holding Corporation
Condensed Consolidated Balance Sheets (Unaudited)
June 30, 2024 and December 31, 2023

 

 

 

As of

(In thousands, except share and per share amounts)

 

June 30, 2024

 

December 31,
2023

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

116,588

 

 

$

141,354

 

Restricted cash

 

 

33,621

 

 

 

31,587

 

Accounts receivable, net of allowance of $1.1 million and $1.7 million as of June 30, 2024 and December 31, 2023, respectively

 

 

13,252

 

 

 

9,188

 

Interest rate swap assets, current

 

 

10,273

 

 

 

11,333

 

Prepaid expenses and other current assets

 

 

5,136

 

 

 

9,879

 

Total current assets

 

 

178,870

 

 

 

203,341

 

Investment related to SEMTH master lease agreement

 

 

141,078

 

 

 

143,095

 

Property and equipment, net

 

 

471,302

 

 

 

484,406

 

Interest rate swap assets, non-current

 

 

20,116

 

 

 

16,550

 

Intangible assets, net

 

 

9,577

 

 

 

10,196

 

Deferred rent assets

 

 

3,155

 

 

 

2,454

 

Right-of-use assets, net

 

 

5,324

 

 

 

5,933

 

Goodwill

 

 

28,757

 

 

 

28,757

 

Other assets

 

 

255

 

 

 

257

 

Long-term assets of discontinued operations

 

 

 

 

 

32

 

Total assets

 

$

858,434

 

 

$

895,021

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

1,417

 

 

$

1,120

 

Non-recourse debt, current, net

 

 

28,374

 

 

 

27,914

 

Accrued expenses and other current liabilities

 

 

20,811

 

 

 

40,634

 

Deferred revenue, current

 

 

2,101

 

 

 

878

 

Lease liability, current

 

 

1,042

 

 

 

1,166

 

Current liabilities of discontinued operations

 

 

65

 

 

 

 

Total current liabilities

 

 

53,810

 

 

 

71,712

 

Non-recourse debt, non-current, net

 

 

584,478

 

 

 

590,866

 

Deferred revenue, non-current

 

 

2,537

 

 

 

1,858

 

Lease liability, non-current

 

 

5,269

 

 

 

5,731

 

Warrant liabilities

 

 

2

 

 

 

17

 

Unfavorable solar renewable energy agreements, net

 

 

4,376

 

 

 

6,108

 

Interest rate swap liabilities, non-current

 

 

174

 

 

 

843

 

Other long-term liabilities

 

 

3,157

 

 

 

3,047

 

Long-term liabilities of discontinued operations

 

 

68

 

 

 

170

 

Total liabilities

 

 

653,871

 

 

 

680,352

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock, $0.0001 par value; 350,000,000 shares authorized at June 30, 2024 and December 31, 2023; 19,357,850 and 18,557,200 shares issued and outstanding at June 30, 2024, respectively, and 19,093,186 issued and 18,292,536 outstanding at December 31, 2023

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

476,711

 

 

 

475,654

 

Accumulated deficit

 

 

(268,920

)

 

 

(257,888

)

Treasury stock at cost, 800,650 shares at June 30, 2024 and December 31, 2023, respectively

 

 

(5,424

)

 

 

(5,424

)

Noncontrolling interests

 

 

2,194

 

 

 

2,325

 

Total stockholders’ equity

 

 

204,563

 

 

 

214,669

 

Total liabilities and stockholders’ equity

 

$

858,434

 

 

$

895,021

 

 

For More Information

Investor Contact: investors@sprucepower.com

Head of Investor Relations: Bronson Fleig

Media Contact: publicrelations@sprucepower.com

Source: Spruce Power Holding Corporation

FAQ

What were Spruce Power's (SPRU) Q2 2024 revenue and net loss?

Spruce Power (SPRU) reported Q2 2024 revenues of $22.5 million and a net loss attributable to stockholders of $8.6 million.

How much unrestricted cash did Spruce Power (SPRU) have at the end of Q2 2024?

Spruce Power (SPRU) ended Q2 2024 with $116.6 million in unrestricted cash.

What is Spruce Power's (SPRU) 2024 Operating EBITDA guidance?

Spruce Power (SPRU) maintains its 2024 Operating EBITDA guidance in the range of $68 - $86 million, with expectations trending towards the lower end of the range.

How many home solar assets does Spruce Power (SPRU) own as of Q2 2024?

As of Q2 2024, Spruce Power (SPRU) owns cash flows from approximately 75,000 home solar assets across 18 U.S. states.

What was Spruce Power's (SPRU) Gross Portfolio Value as of June 30, 2024?

Spruce Power's (SPRU) Gross Portfolio Value was $778.0 million as of June 30, 2024.

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