EX-99.1 2 d497024dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

SolarCity Announces Fourth Quarter and Full Fiscal Year 2012 Financial Results

Customer base increased 243% in 2012, company surpassed $1 billion in solar energy systems deployed

SAN MATEO, Calif., March 6, 2013—SolarCity (Nasdaq: SCTY), a leading provider of clean energy, today announced financial results for its fourth quarter and full year ended December 31, 2012.

“SolarCity grew its customer base more than 243% in 2012 and surpassed $1 billion in solar energy systems deployed. Customers consistently choose SolarCity over alternatives, whether they are solar providers or utility companies. We sign up a new customer every five minutes,” said Lyndon Rive, CEO.

“SolarCity’s growth is proof that the company’s vertically-integrated model—to provide cleaner energy directly to customers at a discount to utility rates—is the key to attracting homeowners and businesses to solar,” continued Rive. “Furthermore, despite our triple-digit growth rate, we’ve scarcely begun to tap the potential of the distributed solar market. Less than half of one percent of energy consumers in the U.S. have adopted solar, and a massive growth opportunity remains.”

Operating Activities

SolarCity’s operating activities include collecting energy contract payments, acquiring new customers, operating and maintaining solar energy systems, technology development and additional activities that enable selling energy to customers.

Q4 2012 Operating Activity Highlights

 

  - 48 MW Deployed, an increase of 129% from the prior year period

 

  - 8,557 Total Customers, an increase of 192% from the prior year period

 

  - 6,810 Energy Contracts, an increase of 190% from the prior year period

 

  - 4,992 Transactions from other energy products and services, an increase of 350% from the prior year period

Full Year 2012 Operating Activity Highlights

 

  - 157 MW Deployed, an increase of 118% from the prior year

 

  - 30,950 Total Customers, an increase of 243% from the prior year

 

  - 26,327 Energy Contracts, an increase of 269% from the prior year

 

  - 15,425 Transactions from other energy products and services, an increase of 315% from the prior year

 

  - $1,091 Million Nominal Contracted Payments Remaining, an increase of 124% from the prior year


Investing Activities

SolarCity’s investing activities are primarily comprised of the Company’s investments in distributed generation solar energy systems under energy contracts.

Q4 2012 Investing Activity Highlights

 

  - Investments in Solar Energy Systems of $151.3 million

Full Year 2012 Investing Activity Highlights

 

  - Investments in Solar Energy Systems of $449.1 million

Financing Activities

SolarCity’s financing activities are primarily comprised of the financing funds we raise with partners to finance our investments in solar energy systems.

Financing Activity Highlights

 

  - Recently completed first restructuring of three financing funds, which lowered the cost of financing the contracted payments from more than 8% to 3.45%

 

  - Available financing funds for 115 MW as of February 28, 2013

GAAP Cash Flow Statement

With each new Energy Contract, we create a recurring, predictable cash flow stream. Our financial strategy is to maximize retained value for shareholders by covering Investing activities with cash generated from Financing and Operating activities. By this definition, the Company achieved positive net cash flow in Q4 2012.

For the year ended December 31, 2012, net cash provided by Operating activities was $60.3 million, net cash used in Investing activities was $449.1 million and net cash provided by Financing activities was $498.3 million. Net cash provided by Financing activities before equity issuances was $323.1 million and the net cash provided by the equity issuances was $175.2 million. The net increase in cash and cash equivalents for the year ended December 31, 2012 was $109.6 million.


Condensed GAAP Statements of Cash Flows

(in Thousands)

 

     Three months
ended
December 31,
    Three months
ended
December 31,
    Year Ended December 31,  
     2011     2012     2011     2012  

Net cash provided by (used in):

        

Operating activities

   $ 82,263      $ 64,723      $ 18,082      $ 60,333   

Investing activities

   ($ 95,270   ($ 151,288   ($ 304,252   ($ 449,059

Financing activities

   ($ 13,231   $ 104,548      $ 256,284      $ 323,129   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net cash provided (used) prior to equity issuances

   ($ 26,238   $ 17,983      ($ 29,886   ($ 65,597

Net cash provided by equity issuance

   $ 112      $ 92,779      $ 22,087      $ 175,206   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

   ($ 26,126   $ 110,762      ($ 7,799   $ 109,609   
  

 

 

   

 

 

   

 

 

   

 

 

 

2012 Fourth Quarter GAAP Results

Recurring Operating Leases Revenue grew 100%, to $14.0 million from $7.0 million in the fourth quarter of 2011, and total revenues grew to $25.3 million from $20.7 million over the same period. Gross Profit grew to $14.0 million from $8.3 million in the fourth quarter of 2011. Gross profit margin increased to 56% compared to 40% in the fourth quarter of 2011. Total Operating Expenses were $37.9 million compared to $22.3 million in the fourth quarter of 2011. Loss from Operations was $23.8 million compared to $14.0 million in the fourth quarter of 2011.

2012 Full Year GAAP Results

Recurring Operating Leases Revenue grew 106% to $47.6 million from $23.1 million in 2011, and total revenue grew to $128.7 million from $59.6 million over the same period. Gross Profit grew to $50.9 million from $12.4 million in 2011. Gross profit margin increased to 40% from 21% in 2011. Total Operating Expenses were $119.7 million compared to $73.7 million in 2011. Loss from Operations was $68.9 million compared to $61.3 million in 2011.

Earnings Conference Call

The Company will hold a conference call today to discuss its fourth quarter and full year results and its outlook for 2013 at 5:00 pm Eastern. A live webcast of the call may be accessed over the Internet from the Company’s Investor Relations website at http:// investors.solarcity.com.

Participants should follow the instructions provided on the website to download and install the necessary audio applications. In addition, an earnings related presentation will be available on the Company’s Investor Relations site at 5:00 pm Eastern. The conference call can be accessed live over the phone by dialing 1-877-407-4018, or for international callers, 1-201-689-8471. A replay will be available one hour after the call and can be accessed by dialing 1-877-870-5176, or for international callers, 1-858-384-5517. The passcode for the live call and the replay is 408735. The replay will be available until March 13, 2013.


About SolarCity

SolarCity® (NASDAQ: SCTY) provides clean energy. The company has disrupted the century-old energy industry by providing renewable electricity directly to homeowners, businesses and government organizations for less than they spend on utility bills. SolarCity gives customers control of their energy costs to protect them from rising rates. The company offers solar power, energy efficiency and electric vehicle services, and makes clean energy easy by taking care of everything from design and permitting to monitoring and maintenance. SolarCity currently serves 14 states and signs a new customer every five minutes. Visit the company online at www.solarcity.com and follow the company on Facebook & Twitter.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding SolarCity’s customer and market growth opportunities, financial strategies for cash generation and increasing shareholder value, the deployment of megawatts currently included in backlog, the amount of megawatts that can be deployed based on committed available financing, additional financial and operational forecasts to be discussed during the conference call referenced in this release, and assumptions relating to the foregoing.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including the effect of electric utility industry regulations, net metering and related policies, the availability and amount of rebates, tax credits and other financial incentives, the availability and amount of financing from fund investors, the retail price of utility-generated electricity or the availability of alternative energy sources, risks associated with SolarCity’s rapid growth, risks that consumers who have executed energy contracts included in reported nominal contracted payments remaining and backlog may seek to cancel those contracts, SolarCity’s limited operating history, particularly as a new public company, changes in strategic planning decisions by management or reallocation of internal resources, and general market, political, economic and business conditions. You should read the section entitled “Risk Factors” in our registration statement on Form S-1, which has been filed with the Securities and Exchange Commission and identifies certain of these and additional risks and uncertainties. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.


SolarCity Corporation

Condensed Consolidated Balance Sheets

(In Thousands)

 

     December 31,
2012
     December 31,
2011
 

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 160,080       $ 50,471   

Restricted cash

     7,516         1,796   

Accounts receivable – net

     25,145         10,651   

Rebates receivable

     17,501         13,684   

Inventories

     87,903         142,742   

Deferred income tax asset

     5,770         4,306   

Prepaid expenses and other current assets

     11,502         17,872   
  

 

 

    

 

 

 

Total current assets

     315,417         241,522   

Restricted cash

     2,810         3,764   

Solar energy systems, leased and to be leased – net

     1,002,184         535,609   

Property and equipment – net

     18,635         14,421   

Other assets

     22,796         17,857   
  

 

 

    

 

 

 

Total assets

   $ 1,361,842       $ 813,173   
  

 

 

    

 

 

 

Liabilities and equity

     

Current liabilities:

     

Accounts payable

   $ 62,986       $ 162,586   

Distributions payable to noncontrolling interests

     12,028         6,216   

Current portion of deferred U.S. Treasury grants income

     11,376         5,430   

Accrued and other current liabilities

     52,334         30,574   

Customer deposits

     8,753         13,933   

Current portion of deferred revenue

     31,516         13,504   

Borrowings under bank line of credit

     —           5,582   

Current portion of long-term debt

     20,613         2,640   

Current portion of lease pass-through financing obligation

     13,622         6,060   

Current portion of sale leaseback financing obligation

     389         361   
  

 

 

    

 

 

 

Total current liabilities

     213,617         246,886   

Deferred revenue, net of current portion

     204,396         101,359   

Long-term debt, net of current portion

     83,533         14,581   

Long-term deferred tax liability

     5,790         4,313   

Lease passthrough financing obligation, net of current portion

     125,884         46,541   

Sale leaseback financing obligation, net of current portion

     14,755         15,144   

Deferred U.S. Treasury grants income, net of current portion

     286,884         132,004   

Convertible redeemable preferred stock warrant liabilities

     —           5,325   

Other liabilities

     112,056         36,314   
  

 

 

    

 

 

 

Total liabilities

     1,046,915         602,467   

Convertible redeemable preferred stock

     —           125,722   

Total stockholders’ equity (deficit)

     214,320         (37,662

Noncontrolling interests in subsidiaries

     100,607         122,646   
  

 

 

    

 

 

 

Total equity

     314,927         210,706   
  

 

 

    

 

 

 

Total liabilities, convertible redeemable preferred stock and equity

   $ 1,361,842       $ 813,173   
  

 

 

    

 

 

 


SolarCity Corporation

Consolidated Statements of Operations

(In Thousands, Except Share and Per Share Amounts)

 

     Three Months Ended
December 31,
 
     2012     2011  

Revenue:

    

Operating leases

   $ 14,032      $ 7,042   

Solar energy systems sales

     11,241        13,700   
  

 

 

   

 

 

 

Total revenues

     25,273        20,742   

Cost of revenue:

    

Operating leases

     4,731        2,429   

Solar energy systems

     6,505        10,003   
  

 

 

   

 

 

 

Total cost of revenues

     11,236        12,432   
  

 

 

   

 

 

 

Gross profit

     14,037        8,310   

Operating expenses:

    

Sales and marketing

     19,416        14,758   

General and administrative

     18,451        7,538   
  

 

 

   

 

 

 

Total operating expenses

     37,867        22,296   
  

 

 

   

 

 

 

Loss from operations

     (23,830     (13,986

Interest expense

     5,220        1,756   

Other expense (income), net

     (15,376     1,213   
  

 

 

   

 

 

 

Loss before income taxes

     (13,674     (16,955

Income tax provision

     53        (30
  

 

 

   

 

 

 

Net loss

     (13,621     (16,985

Net loss attributable to noncontrolling interests

     (10,578     (31,058
  

 

 

   

 

 

 

Net income (loss) attributable to stockholders

   $ (3,043   $ 14,073   
  

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

    

Basic

   $ (13,134   $ 2,710   

Diluted

   $ (27,950   $ 3,673   

Net income (loss) per share attributable to common stockholders

    

Basic

   $ (0.54   $ 0.26   

Diluted

   $ (1.10   $ 0.24   

Weighted average shares used to compute net income (loss) per share attributable to common stockholders

    

Basic

     24,283,731        10,374,820   

Diluted

     25,310,651        15,413,884   


SolarCity Corporation

Consolidated Statements of Operations

(In Thousands, Except Share and Per Share Amounts)

 

     Year Ended December 31,  
     2012     2011     2010  

Revenue:

      

Operating leases

   $ 47,616      $ 23,145      $ 9,684   

Solar energy systems sales

     81,046        36,406        22,744   
  

 

 

   

 

 

   

 

 

 

Total revenues

     128,662        59,551        32,428   

Cost of revenue:

      

Operating leases

     13,346        5,718        3,191   

Solar energy systems

     64,429        41,418        26,953   
  

 

 

   

 

 

   

 

 

 

Total cost of revenues

     77,775        47,136        30,144   
  

 

 

   

 

 

   

 

 

 

Gross profit

     50,887        12,415        2,284   

Operating expenses:

      

Sales and marketing

     69,392        42,004        22,404   

General and administrative

     50,355        31,664        19,227   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     119,747        73,668        41,631   
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (68,860     (61,253     (39,347

Interest expense

     20,142        9,272        4,901   

Other expense, net

     2,519        3,097        2,761   
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (91,521     (73,622     (47,009

Income tax provision

     (54     (92     (65
  

 

 

   

 

 

   

 

 

 

Net loss

     (91,575     (73,714     (47,074

Net loss attributable to noncontrolling interests

     (27,384     (117,230     (8,457
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to stockholders

   $ (64,191   $ 43,516      $ (38,617
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

      

Basic

   $ (74,282   $ 8,225      $ (38,617

Diluted

   $ (74,559   $ 10,989      $ (38,617

Net income (loss) per share attributable to common stockholders

      

Basic

   $ (5.22   $ 0.82      $ (4.50

Diluted

   $ (5.23   $ 0.76      $ (4.50

Weighted average shares used to compute net income (loss) per share attributable to common stockholders

      

Basic

     14,240,187        9,977,646        8,583,772   

Diluted

     14,267,767        14,523,734        8,583,772   


SolarCity Corporation

Condensed Consolidated Statements of Cash Flows

(In Thousands)

 

     Year Ended December 31,  
     2012     2011     2010  

Operating activities:

      

Net loss

   $ (91,575   $ (73,714   $ (47,074

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

      

Loss on disposal of property, plant and equipment

     17        336        26   

Depreciation and amortization net of amortization of deferred U.S. Treasury grant income

     21,008        12,338        5,733   

Interest on lease pass-thorough financing obligation

     12,001        7,373        3,285   

Stock-based compensation

     10,734        5,101        1,773   

Donations of common stock to a charitable organization

     —          119        —     

Revaluation of convertible redeemable preferred stock warrants

     1,898        2,050        1,998   

Revaluation of preferred stock forward contract

     350        —          —     

Deferred income taxes

     13        7        —     

Reduction in lease pass-through financing obligation

     (16,159     (23,528     (7,421

Changes in operating assets and liabilities, net

     122,046        88,000        37,862   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     60,333        18,082        (3,818

Investing activities:

      

Payments for the cost of solar energy systems, leased and to be leased

     (440,692     (292,933     (156,495

Purchase of property and equipment

     (8,367     (8,772     (6,300

Acquisition of business, net of cash acquired

     —          (2,547     (67
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (449,059     (304,252     (162,862

Financing activities:

      

Investment fund financings and bank borrowings:

      

Borrowings under long-term debt

     133,386        17,270        1,292   

Repayments of long-term debt

     (52,299     (3,158     (1,014

Borrowings under bank line of credit

     19,418        5,582        —     

Repayments of bank line of credit

     (25,000     (4,495     —     

Proceeds from sale-leaseback financing obligation

     —          —          18,266   

Repayments of sale-leaseback financing obligation

     (361     (574     (7,603

Proceeds from lease pass-through financing obligation

     145,846        64,135        61,106   

Repayment of capital lease obligations

     (28,442     (7,323     —     

Proceeds from investment by noncontrolling interests in subsidiaries

     161,426        207,970        97,082   

Distributions paid to noncontrolling interest in a subsidiary

     (144,493     (88,636     (25,039

Proceeds from U.S. Treasury grants

     113,648        65,513        20,084   
  

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities before equity issuances

     323,129        256,284        164,174   

Equity issuances:

      

Proceeds of issuance of common stock

     92,386        —          —     

Proceeds from exercise of stock options

     1,724        1,090        92   

Proceeds from the exercise of convertible redeemable preferred stock warrants

     228        —          —     

Proceeds from issuance of convertible redeemable preferred stock warrants

     —          1,297        1,368   

Proceeds from issuance of convertible redeemable preferred stock

     80,868        19,700        21,404   
  

 

 

   

 

 

   

 

 

 

Net cash provided by equity issuances

     175,206        22,087        22,864   
  

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     498,335        278,371        187,038   
  

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     109,609        (7,799     20,358   

Cash and cash equivalents, beginning of period

     50,471        58,270        37,912   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 160,080      $ 50,471      $ 58,270   
  

 

 

   

 

 

   

 

 

 


Operating Activity Metrics    Q4 2011    Q4 2012    2011    2012    Cumulative

Total MW Deployed (1)

   21    48    72    157    287

Number of Customers (2)

   2,928    8,557    9,034    30,950    50,532

Number of Energy Contracts (3)

   2,345    6,810    7,132    26,327    40,456

Transactions from other energy products and services (4)

   1,110    4,992    3,716    15,425    19,630

Nominal contracted payments remaining as of year end $M (5)

         $486    $1,091   
                         As of 2/28/13

Backlog (6)

               194 MW
Investing Activity Metrics    Q4 2011    Q4 2012    2011    2012    Cumulative

Investments in Solar Energy Systems $M (7)

   $95    $151    $304    $449    $1,011
Financing Activity Metrics                        As of 2/28/13

Finance Available (8)

               115 MW

“MW” or “megawatts” represents the DC nameplate megawatt production capacity.

(1) “MW Deployed” represents the megawatt production capacity of solar energy systems that have had all required building department inspections completed during the applicable period. This metric includes solar energy systems deployed under Energy Contracts as well as solar energy system direct sales.

(2) “Customers” includes all residential, commercial and government buildings where we have installed or contracted to install a solar energy system, or performed or contracted to perform an energy efficiency evaluation or other energy efficiency services. Note that we have previously referred to the foregoing as “Buildings” and have chosen to redefine as we believe “customers” is a more appropriate descriptor.

(3)“Energy Contracts” includes all residential, commercial and government leases and power purchase agreements pursuant to which consumers use or will use energy generated by a solar energy system that we have sold or contracted to sell to the consumer or that we have installed or contracted to install. For landlord-tenant structures in which we contract with the landlord or development company, we include each residence as an individual contract. For commercial customers with multiple locations, each location is deemed a contract if we maintain a separate contract for that location. Note that we have previously referred to the foregoing as “Customers” and have chosen to redefine as we believe “energy contracts” is a more appropriate descriptor.

(4)“Transactions from other energy products and services” includes all transactions during the period when we perform or contract to perform a service or provide, install or contract to install a product. It excludes the outright sale or installation of a solar energy system under an Energy Contract and any related monitoring. Examples of such transactions are energy efficiency audits, energy efficiency retrofits, and electric vehicle charging stations.

(5) “Nominal Contracted Payments Remaining” equals the sum of cash payments obligated to be paid to us under our Energy Contracts over the remaining term of such contracts. This metric includes Energy Contracts for solar energy systems already deployed and in Backlog. As an example, if a customer is 2 years into her 20 year contract, then 18 years of contract payments remain. As an additional example, if a customer chose to pre-pay her Energy Contract, then it is included in Nominal Contracted Payments Remaining only while it is in Backlog as the pre-payment has not been received. Payments for direct sales are not included.

(6)“Backlog” represents the aggregate megawatt capacity of solar energy systems not yet deployed as of the date specified pursuant to Energy Contracts and contracts for solar energy system direct sales executed as of such date.

(7) “Investments in Solar Energy Systems” represents the sum of payments for the cost of solar energy systems leased and to be leased, purchase of property and equipment and acquisition of business net of cash required. Investments in Solar Energy Systems does not include solar energy system direct sales or solar energy systems sold via sale-leaseback.

(8) “Finance Available” represents a forecast of the amount of MW that can be deployed based on committed available financing for Energy Contracts.


Media Contact    Jonathan Bass
   650-963-5156
   press@solarcity.com
Investor Contact    SolarCity Investor Relations
   650-963-5920
   investors@solarcity.com