Spruce Power (US:SPRU)2023-11-13 22:07Financial Performance - Total revenues for Q3 2023 were $23.25 million, a significant increase from $5.08 million in Q3 2022, representing a growth of approximately 357%[17] - Operating expenses for Q3 2023 totaled $47.77 million, compared to $29.26 million in Q3 2022, reflecting an increase of about 63%[17] - The net loss attributable to stockholders for Q3 2023 was $19.31 million, compared to a net loss of $22.01 million in Q3 2022, showing an improvement of approximately 8%[17] - The company reported a loss from operations of $24.52 million for Q3 2023, slightly higher than the loss of $24.18 million in Q3 2022[17] - For the nine months ended September 30, 2023, the net loss was $36,407 thousand, an improvement from a net loss of $50,361 thousand in the same period of 2022, reflecting a reduction of approximately 27%[27] - The company reported a net income of $1,583,000 for the three months ended June 30, 2023, compared to a net loss of $18,805,000 for the same period in the previous year[20] - Net loss attributable to stockholders for the three months ended September 30, 2023, was $19.3 million, resulting in a basic and diluted loss per share of $1.11[179] Cash and Liquidity - Cash and cash equivalents decreased to $154.21 million as of September 30, 2023, down from $220.32 million as of December 31, 2022, a decline of about 30%[14] - The cash and cash equivalents at the end of the period were $192,733 thousand, down from $271,634 thousand at the beginning of the period, reflecting a net change of $47,411 thousand[28] - The total cash, cash equivalents, and restricted cash amounted to $192.7 million as of September 30, 2023, down from $271.6 million in 2022, a decrease of 29.0%[53] - The company has not experienced any credit loss related to cash and cash equivalents, which are primarily held in treasury bills[51] Assets and Liabilities - Total assets increased to $940.12 million as of September 30, 2023, up from $826.55 million as of December 31, 2022, representing a growth of approximately 14%[14] - Long-term debt, net of current portion, rose to $599.61 million as of September 30, 2023, compared to $474.44 million as of December 31, 2022, an increase of about 26%[14] - The accumulated deficit increased to $227.70 million as of September 30, 2023, from $193.34 million as of December 31, 2022[15] - As of September 30, 2023, total debt was $627.3 million, an increase from $499.8 million as of December 31, 2022[131] - Accrued expenses and other current liabilities totaled $51.6 million as of September 30, 2023, compared to $21.5 million as of December 31, 2022[130] Shareholder Equity and Stock Activity - As of September 30, 2023, the total stockholders' equity was $244,135,000, with a net loss of $19,188,000 for the quarter[20] - The weighted-average shares outstanding for Q3 2023 were 17,351,796, compared to 17,861,935 in Q3 2022[17] - The total number of common shares outstanding increased to 18,925,126 as of September 30, 2023, up from 18,046,903 at the end of December 2022[20] - The company executed share repurchases totaling 497,725 shares during the quarter, resulting in a reduction of $3,505,000 in equity[20] - The company has $44.9 million remaining available for future share repurchases under its share repurchase program as of September 30, 2023[187] Acquisitions and Investments - The company has made significant investments related to the SEMTH master lease agreement, totaling $145.67 million as of September 30, 2023[14] - The Company acquired Legacy Spruce Power for $32.6 million, consisting of cash payments of $61.8 million less cash and restricted cash acquired of $29.2 million[109] - The acquisition of Legacy Spruce Power added approximately 51,000 customer subscribers, significantly expanding the company's customer base[37] - The company completed the SEMTH Acquisition on March 23, 2023, for approximately $23.0 million in cash and assumed $125.0 million in senior indebtedness[122] - The Tredegar Acquisition on August 18, 2023, involved acquiring approximately 2,400 home solar assets for $20.9 million, funded by term loans[126] Revenue Streams - PPA revenues for the three months ended September 30, 2023, were $11.37 million, compared to $2.43 million in the same period of 2022, reflecting a growth of 368%[81] - SLA revenues increased to $7.60 million for the three months ended September 30, 2023, from $1.68 million in the same period of 2022, representing a growth of 352%[81] - The company generated $5,068 thousand from the sale of solar energy systems, a significant increase from $249 thousand in the prior year[28] - The company recognized $2.07 million in solar renewable energy credit revenues for the three months ended September 30, 2023, compared to $760,000 in the same period of 2022[81] Operational Efficiency - Cash used in continuing operating activities decreased to $10,737 thousand from $30,104 thousand year-over-year, indicating improved operational efficiency[27] - Selling, general and administrative expenses decreased by $3.6 million, or 22%, to $12.4 million[211] - Cost of revenues rose by $1.2 million, or 14%, to $9.8 million, mainly due to increased depreciation related to solar energy systems and higher operation and maintenance costs[213] Legal and Regulatory Matters - The Company accrued a settlement amount of $19.5 million related to securities class action proceedings as of September 30, 2023, expecting to offset this with $4.5 million from its directors and officers liability insurance[164] - A civil monetary penalty of $11.0 million was paid to the SEC in October 2023 as part of a settlement, which was accrued as of September 30, 2023[169] Discontinued Operations - The company discontinued its Drivetrain and XL Grid operations in the fourth quarter of 2022, impacting its financial results[180] - For the three months ended September 30, 2023, XL Grid reported revenues of $0, compared to $2,422,000 in the same period of 2022, reflecting a significant decline[183] - The total net loss from discontinued operations for the nine months ended September 30, 2023, was $4,253,000, compared to a loss of $25,393,000 in the same period of 2022[181]