Sunrun announced financial results for the first quarter ended March 31, 2018.
"People want the freedom to take control of their energy and improve their family's lives. We are proud to have delivered reliable, clean energy and more than $200 million in savings to our 189,000 customers," said Lynn Jurich, Sunrun Chief Executive Officer and co-founder. "Sunrun is in the market leading position and is cash flow positive. We will use this athletic position to expand our service offerings and markets to improve the resiliency of our energy system and combat climate change."
Adoption of New Accounting Standards
On January 1, 2018, Sunrun adopted FASB's new accounting standards for contracts with customers ("Topic 606") and lease accounting rules ("ASC 842"), using retrospective methods. Adoption requires that prior financial results are recast to reflect the new standards. Unless otherwise specified, financial results for both the first quarter of 2018 and the first quarter of 2017 are presented in this release under Topic 606 and ASC 842. The financial results for the first quarter of 2017 may differ from those previously reported.
Key Operating Metrics
In the first quarter of 2018, MW deployed decreased to 68MW from 73MW in the first quarter of 2017, a 7% year-over-year decline.
Creation Cost per watt was $3.51 in the first quarter of 2018 compared to $3.38 in the first quarter of 2017, an increase of 4% year-over-year. The presentation of Creation Cost in the first quarter of 2017 remains as previously reported, as the new calculation methodology due to the adoption of the new accounting standards and the resulting recast financials would have resulted in immaterial changes in the Creation Cost for this period.
NPV per watt in the first quarter of 2018 was $1.10 compared to $0.83 in the first quarter of 2017. NPV created in the first quarter of 2018 was $65 million, a 16% increase from $56 million in the first quarter of 2017. Project Value per watt was $4.61, compared to $4.21 in the first quarter of 2017.
Gross Earning Assets as of March 31, 2018 were $2.4 billion, up $467 million, or 24%, since March 31, 2017. Net Earning Assets as of March 31, 2018 were $1.3 billion, up $213 million, or 20% from the prior year.
As of May 9, 2018, closed transactions and executed term sheets provide us expected tax equity capacity into the first quarter of 2019 and project debt capacity into the fourth quarter of 2018.
First Quarter 2018 GAAP Results
Customer agreements and incentives revenue grew 36% year-over-year to $67.0 million. Solar energy systems and product sales increased 38% year-over-year to $77.4 million. Total revenue grew to $144.4 million in the first quarter of 2018, up $39.3 million, or 37% from the first quarter of 2017.
Total cost of revenue was $119.2 million, an increase of 29% year-over-year. Total operating expenses were $201.1 million, an increase of 31% year-over-year.
Net income available to common stockholders was $28.0 million in the first quarter of 2018, compared to $9.9 million in the first quarter of 2017.
Diluted net earnings per share available to common shareholders was $0.25 per share.
Guidance for Q2 and Full Year 2018
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
In Q2, we expect to deploy approximately 88MW, reflecting approximately 16% growth year-over-year.
For the full year 2018, we continue to expect deployments to grow 15% year-over-year.