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  "docSlug": "522270211ac4",
  "documentTitle": "Sunnova Energy International Inc. (NOVA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-09-29 00:00:00",
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  "pageNumber": 16,
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  "notes": "The table highlights the shifting terminology and values used by the company over time.",
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      "text": "We believe investors should have little confidence in the quality of Sunnova's inventory adjustments and presentation of financials given such frequent changes.",
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      "text": "Adjusted Operating Cash Flow",
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      "text": "Sunnova adds back “Inventory and Prepaid Inventory Purchases” to its adjusted operating cash flow. Spruce Point disagrees with this as: 1) None of Sunnova’s solar peers have reported inventory add-backs to operating cash flow, 2) The Company provides no disclosure to its rationale for such an add-back, and 3) Since going public in July 2019, the Company has used four (4) different inventory line item disclosure classifications on its adjusted operating cash flow bridge. The table below illustrates these murky changes. We believe investors should have little confidence in the quality of Sunnova’s inventory adjustments and presentation of financials given such frequent changes. Notably, the inclusion of prepaid inventory provides Sunnova greater flexibility to increase Adjusted Operating Cash Flow by a material amount in 2019.",
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      "text": "1) 6 month ending figure\nSource: Spruce Point research",
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      "text": "Inventory Operating Cash Flow Adjustments Frequently Change, Undermine Confidence",
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