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SolarCity Announces First Quarter 2013 Financial Results

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 annual report on our Form 10-K, 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, March 31,
  2012 2013
  (audited) (unaudited)
Assets     
Current assets:     
Cash and cash equivalents   $ 160,080  $ 127,294
Restricted cash   7,516  3,154
Accounts receivable, net  25,145  19,041
Rebates receivable   17,501  16,294
Inventories   87,903  77,681
Deferred income tax asset  5,770  5,377
Prepaid expenses and other current assets   11,502  26,304
Total current assets   315,417  275,145
     
Restricted cash   2,810  2,513
Solar energy systems - net  1,002,184  1,131,119
Property, plant and equipment – net   18,635  19,793
Other assets  22,796  23,420
Total assets   $ 1,361,842  $ 1,451,990
     
Liabilities and equity     
Current liabilities:     
Accounts payable   $ 62,986  $ 57,525
Distributions payable to noncontrolling interests  12,028  19,435
Current portion of deferred U.S. Treasury grants income  11,376  13,684
Accrued and other current liabilities   52,334  36,395
Customer deposits   8,753  8,349
Current portion of deferred revenue   31,516  35,109
Current portion of long-term debt   20,613  14,211
Current portion of lease pass-through financing obligation  13,622  27,165
Current portion of sale leaseback financing obligation  389  491
Total current liabilities   213,617  212,364
     
Deferred revenue, net of current portion   204,396  234,907
Long-term debt, net of current portion   83,533  96,224
Long-term deferred tax liability  5,790  5,400
Lease passthrough financing obligation, net of current portion  125,884  101,168
Sale leaseback financing obligation, net of current portion  14,755  14,653
Deferred U.S. Treasury grants income, net of current portion  286,884  354,321
Other liabilities and deferred credits  112,056  118,560
Total liabilities   1,046,915  1,137,597
     
Stockholders' equity:     
Common stock 7 7
Additional paid-in capital   325,705  329,941
Accumulated deficit   (111,392)  (142,386)
Total stockholders' equity   214,320  187,562
Noncontrolling interests in subsidiaries  100,607  126,831
Total equity   314,927  314,393
Total liabilities and equity   $ 1,361,842  $ 1,451,990
     
SolarCity Corporation
Condensed Consolidated Statements of Operations
 
 
In Thousands, Except Share Par Values Three months ended 
  March 31, March 31,
  2012 2013
  (unaudited) (unaudited)
Revenue:     
Operating leases   $ 8,139  $ 15,089
Solar energy systems sales   16,702  14,899
Total revenues   24,841  29,988
     
Cost of revenue:     
Operating leases  2,582  5,503
Solar energy systems   12,125  11,789
Total cost of revenues   14,707  17,292
     
Gross profit  10,134  12,696
     
Operating expenses:     
Sales and marketing   16,131  17,879
General and administrative   8,562  16,618
Total operating expenses   24,693  34,497
     
Loss from operations   (14,559)  (21,801)
     
Interest expense, net  3,494  6,319
     
Other expense, net   8,974  140
     
Loss before income taxes  (27,027)  (28,260)
Income tax (provision) benefit   (35)  105
Net loss  (27,062)  (28,155)
Net (loss) income attributable to noncontrolling interests  (29,818)  2,839
Net income (loss) attributable to stockholders  $ 2,756  $ (30,994)
     
Net Income (Loss) Attributable to Common Stockholders    
Basic  $ 453  $ (30,994)
Diluted  $ 656  $ (30,994)
Net Income (Loss) per Share Attributable to Common Stockholders    
Basic  $ 0.04  $ (0.41)
Diluted  $ 0.04  $ (0.41)
Weighted average shares used to compute net income (loss) per share attributable to common stockholders    
Basic 10,503,931 75,186,430
Diluted 17,076,717 75,186,430
 
     
SolarCity Corporation
Condensed Consolidated Statements of Cash Flows
     
  Three months ended
In Thousands March 31, March 31,
  2012 2013
  (Unaudited) (Unaudited)
Operating activities:    
Net loss  $ (27,062)  $ (28,155)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization net of amortization of deferred U.S. Treasury grant income  3,961  7,482
Interest on lease pass-thorough financing obligation  1,899  3,871
Stock-based compensation  2,091  3,722
Revaluation of convertible redeemable preferred stock warrants  8,588  –
Revaluation of preferred stock forward contract  350  –
Deferred income taxes  3  3
Reduction in lease pass-through financing obligation  (3,865)  (5,482)
Changes in operating assets and liabilities:    
Restricted cash  92  757
Accounts receivable  (25,150)  6,104
Rebates receivable  (2,941)  1,207
Inventories  (7,446)  10,222
Prepaid expenses and other current assets  2,223  (10,785)
Other assets  (2,374)  (624)
Accounts payable  (68,772)  (5,461)
Accrued and other liabilities  7,872  (7,663)
Customer deposits  (253)  (404)
Deferred revenue  33,899  34,104
Net cash provided by (used in) operating activities  (76,885)  8,898
Investing activities:    
Payments for the cost of solar energy systems, leased and to be leased  (83,465)  (138,221)
Purchase of property and equipment  (3,366)  (2,355)
Net cash used in investing activities  (86,831)  (140,576)
Financing activities:    
Investment fund financings and bank borrowings:    
Borrowings under long-term debt  57,570  15,435
Repayments of long-term debt  (427)  (9,729)
Borrowings under bank line of credit  19,418  –
Repayments of sale-leaseback financing obligation  (88)  –
Proceeds from lease pass-through financing obligation  59,155  4,631
Repayment of capital lease obligations  (5,481)  (833)
Proceeds from investment by noncontrolling interests in subsidiaries  3,469  74,578
Distributions paid to noncontrolling interest in a subsidiary  (37,829)  (43,786)
Proceeds from U.S. Treasury grants  26,871  58,082
Net cash provided by financing activites before equity issuances  122,658  98,378
Equity issuances:     
Proceeds from exercise of stock options  387  514
Proceeds from issuance of convertible redeemable preferred stock  80,868  –
Net cash provided by equity issuances   81,255  514
Net cash provided by financing activities  203,913  98,892
     
Net increase (decrease) in cash and cash equivalents  40,197  (32,786)
Cash and cash equivalents, beginning of period  50,471  160,080
Cash and cash equivalents, end of period  $ 90,668  $ 127,294
     
           
Operating Activity Metrics 2011 2012 Q1 2012 Q1 2013 Cumulative
MW Deployed (1) 72 157 41 46 333
MW Backlog as of May 8, 2013 (2)         195
New Customers (3) 9,034 30,950 8,299 6,884 57,416
New Energy Contracts Outstanding (4) 7,132 26,327 7,746 6,387 46,843
Estimated Nominal Contracted Payments Remaining -- $m (5) 486 1,109     1,222
           

"MW" or "megawatts" represents the DC nameplate megawatt production capacity.

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