Sunrun announced financial results for the third quarter ended September 30, 2017.
Third Quarter 2017 Operating Highlights
- Total deployments of90 MW, an increase of 12% year-over-year and exceeding the company's guidance of 88MWs
- Net Present Value (NPV) of $93 million created, an increase of 21% year-over-year
- Unlevered NPV of $1.15 per watt, the highest level in the company's history
- Cumulative MW deployed of 1,117MW, an increase of 39% year-over-year
- Net Earning Assets of $1.2 billion, reflecting a 24% increase year-over-year
"Our positive momentum continues in Q3. We are reiterating our full-year guidance of 15% growth in volumes while increasing our annual NPV target to 40% growth," said Lynn Jurich, Sunrun's chief executive officer. "I am proud of the company's performance and industry leadership. We have brought clean, affordable energy to more than 160,000 American families and provided job opportunities in hundreds of communities across the country. We have delivered our highest unit economics in the company's history and increased our cash balance, even while continuing to invest in new markets, BrightBox and grid services."
Key Operating Metrics
In the third quarter of 2017, MW deployed increased to 90MW from 80MW in the third quarter of 2016, a 12% year-over-year increase.
In the third quarter of 2017, MW booked were 93MW, an increase of 12% from the third quarter of 2016.
Creation Cost per watt was $3.34 in the third quarter of 2017 compared to $3.36 in the third quarter of 2016, an improvement of $0.02 year-over-year. Project Value per watt was $4.49 in the third quarter of 2017, an increase of $0.06 compared to the third quarter of 2016.
NPV created in the third quarter of 2017 was $93 million, a 21% increase from $76 million in the third quarter of 2016. Unlevered NPV per watt in the third quarter of 2017 was $1.15 compared to $1.07 in the prior year, reflecting the highest level in the company’s history.
Gross Earning Assets as of September 30, 2017 were $2.1 billion, up $399 million, or 24% from the prior year. Net Earning Assets as of September 30, 2017 were $1.2 billion, up $232 million, also reflecting a 24% increase from the prior year.
As of November 8, 2017, closed transactions and executed term sheets provide us expected tax equity and back-leverage capacity well into Q2 2018.
Third Quarter 2017 GAAP Results
Operating leases and incentives revenue grew 35% year-over-year to $58.5 million. Solar energy systems and product sales increased 20% year-over-year to $82.8 million. Total revenue grew to $141.3 million in the third quarter of 2017, up $29.3 million, or 26% from the third quarter of 2016.
Total cost of revenue was $118.8 million, an increase of 21% year-over-year. Total operating expenses were $189.0 million, an increase of 16% year-over-year.
Net income available to common stockholders was $27.8 million in the third quarter of 2017, an increase of 65% year-over-year.
Diluted net earnings per share available to common shareholders was $0.25 per share.
Guidance for Q4 and Full Year 2017
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
In Q4, we expect to deploy approximately 87MW. We continue to expect to deploy 325MWs for the full year 2017, reflecting 15% year-over-year growth.