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Sunnova(NOVA) - 2022 Q3 - Earnings Call Transcript
2022-10-27 21:41
Sunnova Energy International, Inc. (NYSE:NOVA) Q3 2022 Earnings Conference Call October 27, 2022 8:00 AM ET Company Participants Rodney McMahan - VP, IR William Berger - Chairman, President & CEO Robert Lane - EVP & CFO Conference Call Participants Philip Shen - ROTH Capital Partners Julien Dumoulin-Smith - Bank of America Merrill Lynch Maheep Mandloi - Cr??dit Suisse Sophie Karp - KeyBanc Capital Markets David Peters - Wolfe Research Sean Morgan - Evercore ISI Pavel Molchanov - Raymond James & Associates J ...
Sunnova(NOVA) - 2022 Q3 - Quarterly Report
2022-10-26 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ FORM 10-Q _______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ...
Sunnova(NOVA) - 2022 Q2 - Earnings Call Transcript
2022-07-28 21:00
Sunnova Energy International Inc. (NYSE:NOVA) Q2 2022 Earnings Conference Call July 28, 2022 8:00 AM ET Company Participants Rodney McMahan - Vice President, Investor Relations John Berger - Chairman & Chief Executive Officer Robert Lane - Executive Vice President & Chief Financial Officer. Conference Call Participants Mark Strouse - JPMorgan Philip Shen - ROTH Capital Julien Dumoulin-Smith - Bank of America Maheep Mandloi - Credit Suisse Ben Kallo - Baird Sophie Karp - KeyBanc Pavel Molchanov - Raymond Jam ...
Sunnova(NOVA) - 2022 Q2 - Earnings Call Presentation
2022-07-28 18:34
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------|-------|----------|-------|---------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Second Quarter | | | | July 27, 2022 | | | | | | | 2022 | | Earnings | | | | | | | | | | | | | | | | | | | Legal Disclaimer This presentation and the accompanying oral presentations contain fo ...
Sunnova(NOVA) - 2022 Q2 - Quarterly Report
2022-07-27 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________________ FORM 10-Q _______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...
Sunnova(NOVA) - 2022 Q1 - Earnings Call Transcript
2022-04-28 22:10
Financial Data and Key Metrics Changes - The company reported strong first quarter results, exceeding the expected 12% of full-year 2022 Adjusted EBITDA, with actual results ahead of that goal [8] - Total liquidity as of March 31, 2022, was $703 million, down from $831 million as of December 31, 2021, but up from $276 million as of March 31, 2021 [23] - The weighted average contract life remaining on customer contracts was 22.3 years, with expected cash inflows over the next twelve months increasing to $403 million [16] Business Line Data and Key Metrics Changes - The company added approximately 15,300 customers in Q1 2022, a 74% increase compared to the same period last year, and expects to meet full-year guidance of 85,000 to 89,000 customer additions [9] - Battery penetration rate reached 12.5% as of March 31, 2022, with a battery attachment rate on origination of 19% [14] - The Net Contracted Customer Value (NCCV) per customer was nearly $10,800 as of March 31, 2022, with a target of $18,000 to $20,000 by the end of 2025 [10] Market Data and Key Metrics Changes - The company is experiencing increased demand for energy services beyond solar, including batteries, electric vehicle charging, and generators [10] - The company has secured over $1.1 billion in firm contracts for equipment, which will not show up on the balance sheet [48][95] Company Strategy and Development Direction - The company aims to provide affordable, reliable, and sustainable energy, focusing on a combination of service, software, and aggregation to distinguish itself from competitors [37] - The Sunnova Adaptive Home concept integrates various energy services, positioning the company for future growth [41] - The company is committed to enhancing its ESG strategy and reporting, with a goal to offset 52 million metric tons of CO2 by year-end 2023 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing equipment and maintaining a strong position despite macroeconomic challenges [48] - The company anticipates continued improvement in returns and pricing strategies in response to rising utility rates and costs of capital [56][62] - Management emphasized the importance of cash flow per share and the ability to balance growth with shareholder returns [100] Other Important Information - The company has implemented new software to analyze customer data, resulting in a reduction of fewer than 3,000 customers from previous counts, ensuring a more accurate customer definition [11] - The company is focused on increasing cash flow per share by driving up value on a per-customer basis and growing its overall customer base [13] Q&A Session Summary Question: Impact of anti-circumvention case on business - Management indicated that they have stockpiled equipment and feel comfortable moving into 2023 regarding equipment availability [48][49] Question: Pricing strategy and increases - Management confirmed that they are constantly reviewing pricing and have already implemented price increases across the board, with room for further increases [66][70] Question: Financing and securitization strategy - Management stated that the ABS market remains attractive, and they are exploring various financing options while locking in favorable terms [81][82] Question: Balancing price increases against equipment costs - Management expects to see continued improvement in returns and has ample room to increase prices in response to rising utility rates [89][90]
Sunnova(NOVA) - 2022 Q1 - Earnings Call Presentation
2022-04-28 10:31
First Quarter 2022 Earnings April 27, 2022 Legal Disclaimer 2 This presentation and the accompanying oral presentations contain 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 " ...
Sunnova(NOVA) - 2022 Q1 - Quarterly Report
2022-04-27 16:00
Part I [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited condensed consolidated financial statements for Q1 2022, including Balance Sheets, Statements of Operations, Cash Flows, and Equity, with accompanying notes [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5.93 billion** as of March 31, 2022, driven by property and equipment and customer notes receivable growth Condensed Consolidated Balance Sheet Data (in thousands) | | As of March 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $562,551 | $615,742 | | **Property and equipment, net** | $3,056,898 | $2,909,613 | | **Customer notes receivable, net** | $1,449,991 | $1,204,073 | | **Total assets** | **$5,928,453** | **$5,504,234** | | **Total current liabilities** | $345,616 | $310,897 | | **Long-term debt, net** | $3,461,614 | $3,135,681 | | **Total liabilities** | **$4,275,844** | **$3,882,621** | | **Total equity** | **$1,507,423** | **$1,476,277** | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2022 revenue grew 59% to **$65.7 million**, but increased operating expenses resulted in an operating loss of **$34.2 million** and a net loss of **$33.6 million** Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Revenue** | $65,722 | $41,276 | | **Total operating expense, net** | $99,928 | $64,582 | | **Operating loss** | $(34,206) | $(23,306) | | **Net loss** | $(20,629) | $(24,064) | | **Net loss attributable to stockholders** | **$(33,583)** | **$(32,983)** | | **Net loss per share** | **$(0.30)** | **$(0.31)** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 cash flow included **$92.1 million** used in operations and **$357.7 million** in investing, largely funded by **$382.8 million** from financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(92,129) | $(49,908) | | **Net cash used in investing activities** | $(357,650) | $(226,213) | | **Net cash provided by financing activities** | $382,813 | $161,691 | | **Net decrease in cash and restricted cash** | $(66,966) | $(114,430) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail business operations, accounting policies, and financial components, including revenue sources, inventory, debt, derivatives, and various commitments - Sunnova is a residential energy service provider serving over **207,000 customers** in more than 25 U.S. states and territories, utilizing a dealer model for origination and installation[21](index=21&type=chunk)[22](index=22&type=chunk) Revenue Breakdown (in thousands) | Revenue Type | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | PPA revenue | $21,185 | $16,834 | | Lease revenue | $21,780 | $16,397 | | SREC revenue | $6,244 | $5,957 | | Cash sales revenue | $11,348 | $— | | Loan revenue | $3,376 | $1,195 | | Other revenue | $1,789 | $893 | | **Total** | **$65,722** | **$41,276** | - As of March 31, 2022, the company had future minimum purchase commitments for solar energy systems and accessories estimated to range from **$580.0 million to $640.0 million** through December 2023[88](index=88&type=chunk) - In April 2022, subsequent to the quarter end, the company issued **694,446 shares** of common stock to Lennar, LLC as part of an earnout agreement from the SunStreet acquisition[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 performance, financial condition, and key trends, highlighting customer growth, revenue increase, financing strategies, and key metrics like Adjusted EBITDA and Estimated Gross Contracted Customer Value [Recent Developments](index=31&type=section&id=Recent%20Developments) Recent developments include ongoing COVID-19 related supply chain disruptions and significant February 2022 financing transactions, such as a **$150.0 million** tax equity fund and **$298 million** in solar loan-backed notes - The industry is currently facing shortages and shipping delays for energy storage systems, modules, and component parts, partly attributed to the COVID-19 pandemic and supply chain issues[102](index=102&type=chunk) - In February 2022, the company secured a new tax equity investor with a total capital commitment of approximately **$150.0 million**[104](index=104&type=chunk) - In February 2022, a subsidiary issued the HELVIII Notes, a securitization of solar loans, totaling **$297.9 million** across three classes with interest rates ranging from **2.79% to 3.53%**[105](index=105&type=chunk) [Key Financial and Operational Metrics](index=33&type=section&id=Key%20Financial%20and%20Operational%20Metrics) Key metrics include customer base growth to **207,800**, Adjusted EBITDA of **$12.5 million**, and Estimated Gross Contracted Customer Value increasing to **$4.74 billion** Customer Growth | | As of March 31, 2022 | As of December 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Number of customers | 207,800 | 192,600 | 15,200 | Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net loss | $(20,629) | $(24,064) | | EBITDA | $(2,023) | $(3,618) | | **Adjusted EBITDA** | **$12,547** | **$12,783** | - Estimated Gross Contracted Customer Value was **$4.735 billion** as of March 31, 2022, calculated using a **4% discount rate**[128](index=128&type=chunk) [Results of Operations Comparison](index=42&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20March%2031%2C%202022%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202021) Q1 2022 revenue increased **$24.4 million** (59%) YoY, driven by customer base growth and SunStreet acquisition, but rising operating expenses widened the operating loss to **$34.2 million** - Revenue increased by **$24.4 million** YoY, primarily due to a higher number of solar energy systems in service and the April 2021 acquisition of SunStreet[161](index=161&type=chunk) - Cost of revenue—other increased by **$6.3 million**, with **$5.8 million** of that increase related to costs from cash sales revenue, which began with the SunStreet acquisition[164](index=164&type=chunk) - General and administrative expense increased by **$27.9 million** YoY, driven by higher payroll (**$10.4 million**), amortization of intangibles (**$7.3 million**), provision for credit losses (**$3.3 million**), and consultant fees (**$2.6 million**)[166](index=166&type=chunk) - Interest expense, net, decreased by **$10.5 million** YoY, primarily due to a **$16.6 million** increase in unrealized gains on derivative instruments[168](index=168&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, Sunnova had **$208.5 million** unrestricted cash and **$311.8 million** available borrowing capacity, with Q1 2022 financing activities providing **$382.8 million** in cash - As of March 31, 2022, the company had total cash of **$324.9 million**, of which **$208.5 million** was unrestricted, and **$311.8 million** of available borrowing capacity[173](index=173&type=chunk) Historical Cash Flow Summary (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(92,129) | $(49,908) | | Net cash used in investing activities | $(357,650) | $(226,213) | | Net cash provided by financing activities | $382,813 | $161,691 | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on variable-rate debt, mitigated by derivatives, with a hypothetical 10% rate increase impacting Q1 2022 interest expense by **$0.4 million** - The company's primary market risk exposure is to changes in interest rates on its floating-rate debt[187](index=187&type=chunk) - A hypothetical **10%** increase in interest rates on variable-rate debt facilities would have increased interest expense by **$0.4 million** for the three months ended March 31, 2022[187](index=187&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of March 31, 2022, while integrating SunStreet's internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[188](index=188&type=chunk) - The company is integrating SunStreet's internal controls, which has resulted in changes to its internal control over financial reporting[190](index=190&type=chunk) Part II [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in ordinary course legal matters but does not anticipate any material adverse effect on its financial position or operations - The company is not a party to any litigation or proceeding that it believes will have a material adverse impact on its financial position or operations[193](index=193&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the company's risk factors have occurred since its Annual Report on Form 10-K filed on February 24, 2022 - There have been no material changes in the company's risk factors since its last Annual Report on Form 10-K[194](index=194&type=chunk) [Other Part II Items](index=48&type=section&id=Other%20Part%20II%20Items) Items 2, 3, and 4 are marked as "Not applicable," and Item 5 is marked as "None" - Items 2, 3, and 4 are marked as "Not applicable," and Item 5 is marked as "None"[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including debt indentures for Series 2022-A Notes, a note purchase agreement, and CEO/CFO certifications - Key exhibits filed with this report include debt indentures for the HELVIII Notes (Series 2022-A), a note purchase agreement, and CEO/CFO certifications[199](index=199&type=chunk)
Sunnova(NOVA) - 2021 Q4 - Earnings Call Transcript
2022-02-24 23:21
Sunnova Energy International, Inc. (NYSE:NOVA) Q4 2021 Earnings Conference Call February 24, 2022 8:30 AM ET Company Participants Rodney McMahan - VP, IR William Berger - Chairman, President & CEO Robert Lane - EVP & CFO Conference Call Participants Maheep Mandloi - Cr??dit Suisse Sophie Karp - KeyBanc Capital Markets Philip Shen - ROTH Capital Partners Joseph Osha - Guggenheim Securities Pavel Molchanov - Raymond James & Associates Sean Morgan - Evercore ISI Ameet Thakkar - BMO Capital Markets Julien Dumou ...
Sunnova(NOVA) - 2021 Q4 - Earnings Call Presentation
2022-02-24 16:24
Fourth Quarter and Full-Year February 23, 2022 2021 Earnings Legal Disclaimer 2 This presentation and the accompanying oral presentations contain 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 conta ...