UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2016
 
Vivint Solar, Inc.
(Exact name of registrant as specified in its charter)

			
  Delaware
(State or other jurisdiction
of incorporation)	001-36642
(Commission
File Number)	45-5605880
(IRS Employer
Identification No.)	
 
1800 West Ashton Blvd.
Lehi, Utah 84043
(Address of principal executive offices, including zip code)
(877) 404-4129
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item  2.02	Results of Operations and Financial Condition.	
On August 8, 2016, the Company issued a press release reporting its financial results for the second quarter ended June 30, 2016. A copy of the press release is furnished herewith as Exhibit 99.1.
The Company makes reference to non-GAAP financial measures in the press release, and includes information regarding such measures in the press release.
The Company also provided a memorandum outlining Vivint Solar, Inc.’s methodology for estimating its cost per watt for installing solar energy systems applicable to the Company’s residential segment that was updated for its financial results for the second quarter ended June 30, 2016. The memorandum is available on the Company’s website.
The information furnished in this Current Report under Item 2.02 and the exhibit attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item  9 .01	Financial Statements and Exhibits.	
(d) Exhibits.	 	 	
Pursuant to the rules and regulations of the Securities and Exchange Commission, the attached exhibit is deemed to have been furnished to, but not filed with, the Securities and Exchange Commission:	
Exhibit Number	  	Description	
99.1	  	Vivint Solar, Inc. press release dated August 8, 2016	

 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Vivint Solar, Inc.

 	By:	/s/ DANA C. RUSSELL
 Dana C. Russell
Chief Financial Officer	
 		and Executive Vice President	
Date: August 8, 2016

 
EXHIBIT INDEX

Exhibit Number	  	Description	
99.1	  	Vivint Solar, Inc. press release dated August 8, 2016	

 
Exhibit 99.1

VIVINT SOLAR ANNOUNCES SECOND QUARTER 2016 FINANCIAL RESULTS
 
Cost per Watt decreased to $2.94
Retained Value Increased 64% Year-over-Year
Revenue Increased 116% Year-over-Year

LEHI, Utah, August 8, 2016 -- Vivint Solar (NYSE: VSLR), today announced financial results for the second quarter ended June 30, 2016.
 
Second Quarter 2016 Operating Highlights
 
Key operating and development highlights for the quarter ended June 30, 2016 include:
 
 	·	MW Booked of approximately 74 MWs for the quarter, approximately flat year-over-year.	
 
 	·	MW Installed of approximately 61 MWs, down 6% year-over-year. Total cumulative MWs installed were approximately 575 MWs.	
 
 	·	Installations were 8,641 for the quarter, down 7% year-over-year. Cumulative installations were 84,872.	
 
 	·	Estimated Nominal Contracted Payments Remaining increased by approximately $191 million during the quarter and was approximately $2.3 billion, up 56% year-over-year.	
 
 	·	Estimated Retained Value increased by approximately $103 million during the quarter to approximately $1.1 billion, up 64% year-over-year.	
 
 	·	Estimated Retained Value per Watt was $1.95.	
 
 	·	Cost per Watt was $2.94, down from $3.34 in the first quarter of 2016 and down from $3.00 in the second quarter of 2015.	

 
Second Quarter 201 6 GAAP Financial Results
 
Summary GAAP financial results for the quarter ended June 30, 2016 include:
 
 	·	Operating Leases and Incentives Revenue was $30.1 million, up 97% from $15.3 million in the second quarter of the prior year. Total revenue for the quarter was $34.9 million, up 116% from $16.1 million in the second quarter of the prior year.	
 
 	·	Cost of Revenue – Operating Leases and Incentives was $38.5 million, up from $33.3 million in the same period of 2015 .	
 
 	·	Total Operating Expenses, including cost of revenue, were $71.4 million, compared to $88.5 million in the second quarter of 2015. Operating expenses included non-cash stock-based compensation expense of $0.8 million, and amortization of intangibles of $0.2 million.	
 
 	·	Loss from Operations was $36.5 million compared to $72.3 million in the same period of 2015.	
 
 	·	GAAP Net Income Available (Loss Attributable) to Stockholders per Diluted Share was $0.11, down from $0.12 in the second quarter of 2015.	
 
 	·	Non-GAAP Loss Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share was ($0.49), down from ($0.85) in the same period of 2015. See below for a further discussion of Non-GAAP Loss per Share.	
 
 	·	Cash and Cash Equivalents as of June 30, 2016 were $69.6 million.	
 
Financing Activity
 
As of June 30, 2016, the Company had $36.5 million in undrawn capacity in the aggregation facility, $125 million in undrawn capacity in the term debt facility, and 32 MWs of installation capacity remaining in our tax equity funds. Subsequent to quarter end, the Company entered into a $313 million term debt facility.

About Vivint Solar
 
Vivint Solar is a leading provider of distributed solar energy systems – electricity generated by a solar energy system installed at a customer’s location – to residential customers in the United States. Vivint Solar’s customers pay little to no money upfront, receive significant savings relative to utility generated electricity rates and continue to benefit from guaranteed energy prices over the 20-year term of their contracts.  Vivint Solar finances, designs, installs, monitors and services the solar energy systems to make things easy for its customers. For more information, visit www.vivintsolar.com or follow @VivintSolar.

 
 
Note on Forward Looking Statements
 
 This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding Vivint Solar’s growth prospects, and operating and financial results such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, estimated shares outstanding, the capacity of solar energy systems expected to be installed, estimated total revenue, and estimated total operating expenses and the assumptions related to the calculation of the foregoing metrics.
 
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements should not be read as a guarantee of future performance or results, and they will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. These statements are based on current expectations and assumptions regarding future events and business performance as of the date of this press release, and they 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 but not limited to: the availability of additional financing on acceptable terms; changes in the retail price of traditional utility generated electricity; changes in electric utility policies and regulations; the availability of rebates, tax credits and other incentives, including solar renewable energy certificates, or SRECs and state incentives, that affect the pricing of our offering; regulations and policies related to net metering; changes in regulations, tariffs and other trade barriers and tax policy affecting us and our industry; our ability to manage our recent and future growth effectively, including attracting, training and retaining sales personnel and solar energy system installers; the availability and price of solar panels and other system components, the assumptions employed in calculating our operating metrics may be inaccurate; Vivint Solar’s limited operating history, particularly as a new public company; and such other risks identified in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, or SEC, from time to time. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in those statements will be achieved or will occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Except as required by law, Vivint Solar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. You should read the documents Vivint Solar has filed with the SEC for more complete information about the company. These documents are available on both the EDGAR section of the SEC’s website at www.sec.gov and the Investor Relations section of the company’s website at www.vivintsolar.com

 
Vivint Solar, Inc.	 	
Condensed Consolidated Unaudited Balance Sheets	 	
(In thousands)	 	
 	 	 	 	 	 	 	 	
 	June 30,	 	 	December 31,	 	
 	2016	 	 	2015	 	
ASSETS	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	
Cash and cash equivalents	$	69,614	 	 	$	92,213	 	
Accounts receivable, net	 	11,940	 	 	 	3,636	 	
Inventories	 	3,867	 	 	 	631	 	
Prepaid expenses and other current assets	 	16,000	 	 	 	17,078	 	
Total current assets	 	101,421	 	 	 	113,558	 	
Restricted cash and cash equivalents	 	19,552	 	 	 	15,035	 	
Solar energy systems, net	 	1,303,904	 	 	 	1,102,157	 	
Property and equipment, net	 	28,743	 	 	 	48,168	 	
Intangible assets, net	 	1,901	 	 	 	2,031	 	
Goodwill	 	—	 	 	 	36,601	 	
Prepaid tax asset, net	 	364,536	 	 	 	277,496	 	
Other non-current assets, net	 	15,034	 	 	 	14,024	 	
TOTAL ASSETS	$	1,835,091	 	 	$	1,609,070	 	
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	
Accounts payable	$	54,268	 	 	$	49,986	 	
Accounts payable—related party	 	493	 	 	 	1,905	 	
Distributions payable to non-controlling interests and redeemable non-controlling interests	 	9,820	 	 	 	11,347	 	
Accrued compensation	 	19,111	 	 	 	13,758	 	
Current portion of deferred revenue	 	11,674	 	 	 	4,968	 	
Current portion of capital lease obligation	 	5,706	 	 	 	5,489	 	
Accrued and other current liabilities	 	32,792	 	 	 	29,017	 	
Total current liabilities	 	133,864	 	 	 	116,470	 	
Capital lease obligation, net of current portion	 	7,962	 	 	 	10,055	 	
Long-term debt	 	550,572	 	 	 	415,850	 	
Deferred tax liability, net	 	299,870	 	 	 	216,033	 	
Deferred revenue, net of current portion	 	37,772	 	 	 	43,304	 	
Other non-current liabilities	 	9,171	 	 	 	28,565	 	
Total liabilities	 	1,039,211	 	 	 	830,277	 	
Commitments and contingencies	 	 	 	 	 	 	 	
Redeemable non-controlling interests	 	150,686	 	 	 	169,541	 	
Stockholders' equity:	 	 	 	 	 	 	 	
Common stock	 	1,077	 	 	 	1,066	 	
Additional paid-in capital	 	532,611	 	 	 	530,646	 	
Accumulated deficit	 	(31,617	)	 	 	(12,769	)	
Total stockholders' equity	 	502,071	 	 	 	518,943	 	
Non-controlling interests	 	143,123	 	 	 	90,309	 	
Total equity	 	645,194	 	 	 	609,252	 	
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY	$	1,835,091	 	 	$	1,609,070	 	

 
Vivint Solar, Inc.	 	
Condensed Consolidated Unaudited Statements of Operations	 	
(In thousands, except per share data)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	Six Months Ended	 	
 	June 30,	 	 	June 30,	 	
 	2016	 	 	2015	 	 	2016	 	 	2015	 	
Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating leases and incentives	$	30,061	 	 	$	15,301	 	 	$	46,639	 	 	$	23,881	 	
Solar energy system and product sales	 	4,843	 	 	 	834	 	 	 	5,495	 	 	 	1,799	 	
Total revenue	 	34,904	 	 	 	16,135	 	 	 	52,134	 	 	 	25,680	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of revenue—operating leases and incentives	 	38,538	 	 	 	33,295	 	 	 	76,298	 	 	 	57,175	 	
Cost of revenue—solar energy system and product sales	 	3,716	 	 	 	476	 	 	 	4,138	 	 	 	914	 	
Sales and marketing	 	10,813	 	 	 	18,697	 	 	 	23,461	 	 	 	25,130	 	
Research and development	 	144	 	 	 	920	 	 	 	1,376	 	 	 	1,502	 	
General and administrative	 	18,064	 	 	 	31,364	 	 	 	40,984	 	 	 	49,994	 	
Amortization of intangible assets	 	155	 	 	 	3,721	 	 	 	420	 	 	 	7,484	 	
Impairment of goodwill and intangible assets	 	—	 	 	 	—	 	 	 	36,601	 	 	 	4,506	 	
Total operating expenses	 	71,430	 	 	 	88,473	 	 	 	183,278	 	 	 	146,705	 	
Loss from operations	 	(36,526	)	 	 	(72,338	)	 	 	(131,144	)	 	 	(121,025	)	
Interest expense	 	7,413	 	 	 	2,730	 	 	 	13,178	 	 	 	4,857	 	
Other expense	 	309	 	 	 	60	 	 	 	339	 	 	 	373	 	
Loss before income taxes	 	(44,248	)	 	 	(75,128	)	 	 	(144,661	)	 	 	(126,255	)	
Income tax expense	 	8,055	 	 	 	14,577	 	 	 	13,204	 	 	 	23,425	 	
Net loss	 	(52,303	)	 	 	(89,705	)	 	 	(157,865	)	 	 	(149,680	)	
Net loss attributable to non-controlling interests and redeemable
   non-controlling interests	 	(64,674	)	 	 	(103,358	)	 	 	(139,017	)	 	 	(175,482	)	
Net income available (loss attributable) to common stockholders	$	12,371	 	 	$	13,653	 	 	$	(18,848	)	 	$	25,802	 	
Net income available (loss attributable) per share to common
   stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	$	0.12	 	 	$	0.13	 	 	$	(0.18	)	 	$	0.24	 	
Diluted	$	0.11	 	 	$	0.12	 	 	$	(0.18	)	 	$	0.24	 	
Weighted-average shares used in computing net income available
   (loss attributable) per share to common stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	107,226	 	 	 	105,988	 	 	 	106,922	 	 	 	105,647	 	
Diluted	 	111,380	 	 	 	109,794	 	 	 	106,922	 	 	 	109,424	 	

 
Vivint Solar, Inc.	 	
Condensed Consolidated Unaudited Statements of Cash Flows	 	
(In thousands)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	Six Months Ended	 	
 	June 30,	 	 	June 30,	 	
 	2016	 	 	2015	 	 	2016	 	 	2015	 	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	$	(52,303	)	 	$	(89,705	)	 	$	(157,865	)	 	$	(149,680	)	
Adjustments to reconcile net loss to net cash used in operating
   activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	10,773	 	 	 	5,545	 	 	 	19,876	 	 	 	9,753	 	
Amortization of intangible assets	 	155	 	 	 	3,721	 	 	 	420	 	 	 	7,484	 	
Impairment of goodwill and intangible assets	 	—	 	 	 	—	 	 	 	36,601	 	 	 	4,506	 	
Deferred income taxes	 	39,466	 	 	 	37,179	 	 	 	83,837	 	 	 	54,203	 	
Stock-based compensation	 	842	 	 	 	17,903	 	 	 	2,467	 	 	 	20,610	 	
Loss on removal of solar energy systems and property and
   equipment	 	(185	)	 	 	—	 	 	 	259	 	 	 	—	 	
Non-cash interest and other expense	 	1,567	 	 	 	877	 	 	 	2,997	 	 	 	1,672	 	
Reduction in lease pass-through financing obligation	 	(1,228	)	 	 	—	 	 	 	(1,666	)	 	 	—	 	
Excess tax effects from stock-based compensation	 	(588	)	 	 	—	 	 	 	(981	)	 	 	—	 	
Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable, net	 	(4,915	)	 	 	(2,049	)	 	 	(8,304	)	 	 	(3,586	)	
Inventories	 	(2,337	)	 	 	430	 	 	 	(3,236	)	 	 	432	 	
Prepaid expenses and other current assets	 	4,449	 	 	 	476	 	 	 	2,307	 	 	 	252	 	
Prepaid tax asset, net	 	(45,043	)	 	 	(50,756	)	 	 	(87,040	)	 	 	(87,193	)	
Other non-current assets, net	 	(1,587	)	 	 	(324	)	 	 	(3,294	)	 	 	(228	)	
Accounts payable	 	(623	)	 	 	1,022	 	 	 	(1,078	)	 	 	1,051	 	
Accounts payable—related party	 	(393	)	 	 	154	 	 	 	(1,412	)	 	 	(154	)	
Accrued compensation	 	308	 	 	 	4,080	 	 	 	4,638	 	 	 	3,611	 	
Deferred revenue	 	116	 	 	 	1,262	 	 	 	1,174	 	 	 	2,751	 	
Accrued and other liabilities	 	3,293	 	 	 	(9,344	)	 	 	1,578	 	 	 	10,927	 	
Net cash used in operating activities	 	(48,233	)	 	 	(79,529	)	 	 	(108,722	)	 	 	(123,589	)	
CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Payments for the cost of solar energy systems	 	(104,925	)	 	 	(125,865	)	 	 	(211,622	)	 	 	(234,050	)	
Payments for property and equipment, net	 	(122	)	 	 	(2,226	)	 	 	(1,514	)	 	 	(3,402	)	
Change in restricted cash and cash equivalents	 	(1,904	)	 	 	(488	)	 	 	(4,517	)	 	 	(6,132	)	
Purchase of intangible assets	 	—	 	 	 	(307	)	 	 	(291	)	 	 	(329	)	
Net cash used in investing activities	 	(106,951	)	 	 	(128,886	)	 	 	(217,944	)	 	 	(243,913	)	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from investment by non-controlling interests and
   redeemable non-controlling interests	 	93,277	 	 	 	87,565	 	 	 	183,263	 	 	 	168,783	 	
Distributions paid to non-controlling interests and redeemable non-
   controlling interests	 	(5,419	)	 	 	(8,324	)	 	 	(11,813	)	 	 	(10,689	)	
Proceeds from long-term debt	 	50,204	 	 	 	86,000	 	 	 	144,706	 	 	 	103,500	 	
Payments on long-term debt	 	—	 	 	 	—	 	 	 	(4,150	)	 	 	—	 	
Payments for debt issuance costs	 	—	 	 	 	—	 	 	 	(6,230	)	 	 	(3,078	)	
Proceeds from lease pass-through financing obligation	 	579	 	 	 	—	 	 	 	860	 	 	 	—	 	
Principal payments on capital lease obligations	 	(1,497	)	 	 	(1,057	)	 	 	(3,059	)	 	 	(2,070	)	
Proceeds from issuance of common stock	 	490	 	 	 	588	 	 	 	490	 	 	 	588	 	
Excess tax effects from stock-based compensation	 	—	 	 	 	1,632	 	 	 	—	 	 	 	1,632	 	
Payments for deferred offering costs	 	—	 	 	 	—	 	 	 	—	 	 	 	(589	)	
Net cash provided by financing activities	 	137,634	 	 	 	166,404	 	 	 	304,067	 	 	 	258,077	 	
NET DECREASE IN CASH AND CASH EQUIVALENTS	 	(17,550	)	 	 	(42,011	)	 	 	(22,599	)	 	 	(109,425	)	
CASH AND CASH EQUIVALENTS—Beginning of period	 	87,164	 	 	 	194,235	 	 	 	92,213	 	 	 	261,649	 	
CASH AND CASH EQUIVALENTS—End of period	$	69,614	 	 	$	152,224	 	 	$	69,614	 	 	$	152,224	 	

 

Vivint Solar, Inc.	 	
Key Operating Metrics	 	

 	Three Months Ended	 	
 	June 30,	 	 	December 31,	 	 	June 30,	 	
 	2016	 	 	2015	 	 	2015	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Installations	 	8,641	 	 	 	8,411	 	 	 	9,312	 	
Megawatts installed	 	61.4	 	 	 	58.6	 	 	 	65.5	 	
Cumulative installations	 	84,872	 	 	 	68,527	 	 	 	51,458	 	
Cumulative megawatts installed	 	575.2	 	 	 	458.9	 	 	 	339.9	 	
Estimated nominal contracted payments remaining (in millions)	$	2,255.3	 	 	$	1,871.9	 	 	$	1,442.5	 	
      Estimated retained value under energy contract (in millions)	$	862.0	 	 	$	705.6	 	 	$	531.3	 	
      Estimated retained value of renewal (in millions)	$	252.9	 	 	$	200.5	 	 	$	148.7	 	
Estimated retained value (in millions)	$	1,115.0	 	 	$	906.1	 	 	$	680.0	 	
Estimated retained value per watt	$	1.95	 	 	$	1.98	 	 	$	2.00	 	

 
Non-GAAP Earnings per Share (EPS) Before Noncontrolling Interests
 
We report GAAP EPS, which is based upon net income available (loss attributable) to common stockholders. We also report non-GAAP EPS. The difference between GAAP EPS and non-GAAP EPS is that non-GAAP EPS is based on net loss, which excludes net loss attributable to non-controlling interests and redeemable non-controlling interests. Additionally, we have excluded the effect of the goodwill impairment for the six months ended June 30, 2016 as it is a non-cash, non-recurring event that is not representative of our ongoing business. As we are in a net loss position for all periods reported, potentially issuable shares are excluded from the diluted EPS calculation since the effect would be antidilutive. Therefore, basic and diluted non-GAAP EPS are the same in each period presented.
 
Under GAAP accounting, we report net loss attributable to non-controlling interests and redeemable non-controlling interests to reflect our joint venture fund investors’ allocable share in the results of these joint venture investment funds. Net loss attributable to non-controlling interests and redeemable non-controlling interests is calculated based primarily on the hypothetical liquidation at book value, or HLBV, method, which assumes that the joint venture funds are liquidated at the reporting date, even though liquidation may or may not ever occur. Additionally the returns that will be allocated to the investors over the expected terms of the investment funds may differ significantly from the amounts calculated under the HLBV method. Accordingly, we also report non-GAAP EPS based on our losses before net loss attributable to non-controlling interests and redeemable non-controlling interests per share, which we view as a better measure of our operating performance.  Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.
 
According to this definition, the non-GAAP loss before the allocation of loss attributable to non-controlling interests and redeemable non-controlling interests per share was ($0.49) and ($1.13) for the three and six months ended June 30, 2016.

Vivint Solar, Inc.	 	
Non-GAAP Net Loss per Share	 	
(In thousands, except per share data)	 	

 	Three Months Ended	 	 	Six Months Ended	 	
 	June 30,	 	 	June 30,	 	
 	2016	 	 	2015	 	 	2016	 	 	2015	 	
Net loss	$	(52,303	)	 	$	(89,705	)	 	$	(121,264	)	 	$	(149,680	)	
Net loss per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted	$	(0.49	)	 	$	(0.85	)	 	$	(1.13	)	 	$	(1.42	)	
Weighted-average shares used in computing net loss per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted	 	107,226	 	 	 	105,988	 	 	 	106,922	 	 	 	105,647	 	

 
 
Glossary of Definitions
 
“ Installations ” represents the number of solar energy systems installed on customers’ premises.
 
“ MWs or megawatts ” represents the DC nameplate megawatt production capacity.
 
“ MW Booked ” represents the aggregate megawatt nameplate capacity of solar energy systems that were permitted during the period net of cancellations in the period.
 
“ MW Installed ” represents the aggregate megawatt nameplate capacity of solar energy systems for which panels, inverters, and mounting and racking hardware have been installed on customer premises in the period.
 
“ Nominal Contracted Payments Remaining ” equals the sum of the remaining cash payments that Vivint Solar’s customers are expected to pay over the term of their agreements for systems installed as of the measurement date. For a power purchase agreement, Vivint Solar multiplies the contract price per kilowatt-hour by the estimated annual energy output of the associated solar energy system to determine the estimated nominal contracted payments. For a customer lease, Vivint Solar includes the monthly fees and upfront fee, if any, as set forth in the lease.
 
“ Retained Value ” represents the net cash flows, discounted at 6%, that Vivint Solar expects to receive from customers pursuant to long-term customer contracts net of estimated cash distributions to fund investors and estimated operating expenses for systems installed as of the measurement date. For purposes of the calculation, Vivint Solar aggregates the estimated retained value from the solar energy systems during the typical 20-year term of Vivint Solar’s contracts, which Vivint Solar refers to as estimated retained value under energy contracts, and the estimated retained value associated with an assumed 10-year renewal term following the expiration of the initial contract term, which Vivint Solar refers to as estimated retained value of renewal. To calculate estimated retained value of renewal, Vivint Solar assumes all contracts are renewed at 90% of the contractual price in effect at the expiration of the initial term.
 
“ Retained Value per Watt ” is calculated by dividing the estimated retained value as of the measurement date by the aggregate nameplate capacity of solar energy systems under long-term customer contracts that have been installed as of such date, and is subject to the same assumptions and uncertainties as estimated retained value.
 
“ Undeployed Tax Equity Financing Capacity ” represents a forecast of the amount of megawatts that can be deployed based on committed available tax equity financing for Energy Contracts.

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Investor Contact:
 
Vivint Solar
Rob Kain
Vice President of Investor Relations
855-842-1844
ir@vivintsolar.com
 
Media Contact:
 
Vivint Solar
Casey Briggs
Public Relations
801-229-6443
pr@vivintsolar.com