Sunnova Energy International: Second Quarter 2022 Earnings Conference Call
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 “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “will”, “could”, “intend”, “target”, “plan”, “intend”, “believe”, “estimate”, “predict”, “potential” or “continue” or the negative of these words or d other similar terms or expressions relating to Sunnova’s expectations, strategy, priorities, plans or
intentions. Forward-looking statements in this presentation include, but are not limited to, statements regarding our level of growth, future contract value of customers, technology developments, service levels, future financial and operational performance, including its outlook. and its directions, the demand for Sunnova’s products and services, future financing and the ability to raise capital therefrom,
the maintenance and growth of our dealer and sub-dealer network, the future of solar power and energy storage services and the benefits of, and future operations and financial performance. Sunnova’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to predict our business due to our limited operating history. , the effects of the coronavirus pandemic on our business and
operations, supply chain uncertainties, results of operations and financial condition, our competition, changes in regulations applicable to our business, fluctuations in the solar energy and residential construction markets, the availability of capital, our ability to attract and retain dealers and customers and to manage our relationships with dealers and strategic partners, the ability to successfully integrate the SunStreet
acquisition, Sunnova’s ability to implement its plans, forecasts and other expectations regarding SunStreet’s business and realize the expected benefits of the acquisition. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those described more fully in Sunnova’s filings with the Securities and Exchange Commission, including Sunnova’s Annual Report on Form 10- K for the fiscal year ended December 31, 2021. , The forward-looking statements in this presentation are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law. ‘required.
In addition to financial information presented in accordance with United States generally accepted accounting principles (“GAAP”), this presentation and the accompanying oral presentation include certain non-GAAP financial measures, including adjusted EBITDA, adjusted operating cash flow, recurring operating cash flow and adjusted operating cash flow. Exploitation charges. These non-GAAP measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have
limitations as analytical tools, and they should not be considered in isolation or as a substitute for the analysis of other GAAP financial measures. Adjusted EBITDA and Adjusted Operating Expenses are non-GAAP financial measures that help management, investors and securities analysts evaluate Sunnova’s performance. These measures are not accounted for in accordance with
conform to GAAP and should not be considered as alternatives to performance measures conforming to GAAP. The GAAP measures most directly comparable to Adjusted EBITDA and Adjusted operating expenses are net income and total operating expenses, respectively. Adjusted operating cash flow and recurring operating cash flow are non-GAAP measures that help management, investors and analysts assess Sunnova’s liquidity and ability to meet its contractual obligations. These measures are not recognized in accordance with GAAP and should not be construed as a
alternative to GAAP liquidity measures. The most directly comparable GAAP measure to adjusted operating cash flow and recurring operating cash flow is net cash used in operating activities. Adjusted EBITDA, Adjusted Operating Cash Flow, Recurring Operating Cash Flow and Adjusted Operating Expenses have limitations as analytical tools and should not be considered
alone or in lieu of analysis of Sunnova’s results as reported under GAAP. Additionally, Adjusted EBITDA, Adjusted Operating Cash Flow, Recurring Operating Cash Flow and Adjusted Operating Expenses are not necessarily comparable to Adjusted EBITDA, Operating Cash Flow adjusted, recurring operating cash flow or adjusted operating expenses as calculated by other companies. Reconciliations of each of these measures to their most directly comparable GAAP measure are included in the appendix to this presentation for historical periods. Sunnova is
unable to reconcile projected adjusted EBITDA, adjusted operating expenses, recurring operating cash flow and adjusted operating cash flow to the most comparable financial measures calculated in accordance with GAAP due to rate fluctuations rates and their impact on our unrealized and realized interest rate hedging gains or losses. Sunnova offers a range for
forecasts of adjusted EBITDA, recurring operating cash flow and operating cash flow adjusted for variability in the timing of receipts and disbursements, customer usage of our assets and the impact on related reconciling items, many of which interact with each other . Therefore, the reconciliation of projected adjusted EBITDA, recurring operating cash flow and adjusted operating cash flow to projected net income (loss), total operating expenses or net cash provided by (used in) operations, as the case may be, is not available without unreasonable effort.
This presentation includes operational measures such as number of customers, weighted average number of systems, and estimated net and gross contract value of customers. These operational measures are not necessarily comparable to the same or similar measures calculated by other companies.
This presentation and the accompanying oral presentation also contain market data, statistical data, estimates and forecasts based on independent industry publications or other publicly available information, and other information based on our internal sources. This information involves numerous assumptions and limitations, and you are cautioned not to place undue weight on
such information. Certain data is also based on Sunnova’s good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although Sunnova believes these sources to be reliable, we have not independently verified the accuracy or completeness of the information contained in industry publications and other publicly available information. Accordingly, Sunnova makes no representation as to the accuracy or completeness of this information, nor does it undertake to update this information after the date of this presentation.