Spruce Power Reports Third Quarter 2024 Results

In This Article:

DENVER, November 13, 2024--(BUSINESS WIRE)--Spruce Power Holding Corporation (NYSE: SPRU) ("Spruce" or the "Company"), a leading owner and operator of distributed solar energy assets across the United States, today reported financial results for the third quarter ended September 30, 2024.

Business Highlights

  • Reported 3Q revenues of $21.4 million, net loss attributable to stockholders of $53.5 million and Operating EBITDA of $17.7 million

  • Ended quarter with strong liquidity position for future growth, with $113.7 million of unrestricted cash

  • Executed a non-binding Letter of Intent ("LOI") to acquire a portfolio of approximately 10,000 home solar assets and contracts - this deal is expected to close in the fourth quarter of 2024, which if completed would bring ownership of total home solar assets and contracts to approximately 85,000

  • Continued to develop a pipeline of organic growth prospects through Spruce Pro, including the signing of a non-binding Memorandum of Understanding ("MOU") to service a portfolio with thousands of residential solar customers

Management Commentary and Outlook

"Spruce has built a highly attractive owner-operator platform that is poised for scale and long-term value creation. We continue to advance a pipeline of growth opportunities with a focus on profitable growth and driving inflection in the cash generating ability of our Company," said Chris Hayes, Spruce's Chief Executive Officer.

Hayes continued, "These efforts include the signing of an LOI for our next acquisition that, if completed, would position Spruce to add long-term, contracted cash flows from approximately 10,000 home solar assets and contracts, representing over 10% growth in our rooftop solar portfolio. Also, we remain laser-focused on unlocking value from investment in our comprehensive servicing platform through Spruce Pro third-party service offerings."

Consolidated Financial Results

Revenues totaled $21.4 million for the third quarter of 2024, compared to $23.3 million for the third quarter of 2023. The decrease was primarily due to lower solar renewable energy credit ("SREC") revenues and higher performance guarantee payments during the three months ended September 30, 2024.

Core operating expenses (excluding depreciation), which includes both selling, general & administrative expenses ("SG&A") and operations and maintenance ("O&M"), were $17.4 million for the third quarter of 2024, up from $15.9 million for the third quarter of 2023. The increase was primarily attributable to higher non-routine O&M, higher compensation cost, and legal costs tied to legal settlements and ongoing legal proceedings incurred during the quarter.

Waiting for permission
Allow microphone access to enable voice search

Try again.