- Record Quarterly Net sales of $1.3
billion
- Preliminary Quarterly GAAP earnings
per fully diluted share of $3.38
- Cash and marketable securities of
$1.8 billion, net cash of $1.5 billion
- Raise preliminary 2015 EPS guidance
to $4.30 to $4.50
- Record 1.7GWdc of new
bookings; Record annual bookings of 3.1GWdc
year-to-date
First Solar, Inc. (Nasdaq: FSLR) today announced preliminary
financial results for the third quarter of 2015. The Company
expects to release complete condensed consolidated financial
results and file its Quarterly Report on Form 10-Q on or prior to
November 9th, 2015.
The Company is issuing preliminary results while it completes
its analysis of a discrete income tax matter related to a foreign
jurisdiction. The Company believes that based on its preliminary
analysis, the tax matter could have an adverse financial impact of
up to $40 million. Preliminary results are being issued pending the
determination of the financial impact of this matter, if any.
Preliminary Financial
Results
Net sales were $1.3 billion in the quarter, an increase of $375
million from the second quarter of 2015. The increase in net sales
from the prior quarter resulted primarily from initial revenue
recognition on the sale of a majority interest in the partially
constructed Desert Stateline project. In addition revenue increased
due to higher third party module sales and an increase in systems
revenue across multiple projects.
The Company reported preliminary third quarter GAAP earnings per
fully diluted share of $3.38, compared to $0.93 in the prior
quarter. The sequential increase in net income was due to higher
gross margins associated with the majority sale of the Desert
Stateline project, improvements in systems project costs and a
decrease in our module collection and recycling obligation, which
reduced cost of sales by $70 million and operating expenses by $10
million.
Cash and marketable securities at the end of the third quarter
were approximately $1.8 billion, an increase of approximately $34
million compared to the prior quarter. Cash flows from operations
were $21 million in the third quarter. The increase in cash and
marketable securities during the quarter was primarily due to cash
received related to the majority sale of the Desert Stateline
project, partially offset by continued project construction on
balance sheet.
“We had tremendous execution in the third quarter from both a
financial and bookings perspective,” said Jim Hughes, CEO of First
Solar. “We have now exceeded our book-to-bill target for the year,
booked over 1GWdc of volume with deliveries after 2016, achieved
strong quarterly earnings and have significantly raised our full
year earnings guidance. We remain confident in our long term
strategy and our ability to execute successfully.”
The Company also provided preliminary updated guidance for 2015.
The following guidance is preliminary pending the determination of
the financial impact of the tax matter discussed previously.
2015 Guidance Update Prior
Current Net Sales
$3.5B to $3.6B
Unchanged
Gross Margin %1 21% to 22%
24% to 25% Operating
Expenses1 $415M to $425M
$395M to $405M
Operating Income1 $330M to $370M
$450M to $490M Effective Tax
Rate4 2% to 5%
4% to 6% Earnings per Share1,4
$3.30 to $3.60
$4.30 to $4.50
Net Cash Balance2, 4 $1.2B to
$1.4B
$1.3B to $1.4B Capital
Expenditures $175M to $200M
Unchanged Working Capital3
$1.1B to $1.3B
$1.1B to
$1.2B Shipments 2.8GW to 2.9GW
Unchanged 1- Includes
$80M benefit ($70M Gross Margin, $10M Opex) for a reduction in EOL
obligation. EPS impact is $0.60 2- Cash & Marketable securities
less debt at end of 2015 3- Expected increase in working capital
from December 31, 2014 4- Excludes impact of up to $40 million
related to pending tax matter
First Solar has scheduled a conference call for today, October
29, 2015 at 4:30 p.m. ET to discuss this announcement. A live
webcast of this conference call is available at http://investor.firstsolar.com/events.cfm.
An audio replay of the conference call will also be available
approximately two hours after the conclusion of the call. The audio
replay will remain available until Thursday, November 5, 2015 at
7:30 p.m. ET and can be accessed by dialing 888-203-1112 if you are
calling from within the United States or 719-457-0820 if you are
calling from outside the United States and entering the replay pass
code 3562138. A replay of the webcast will be available on the
Investors section of the Company’s website approximately two hours
after the conclusion of the call and remain available for
approximately 90 calendar days.
About First Solar, Inc.
First Solar is a leading global provider of comprehensive
photovoltaic (PV) solar systems which use its advanced module and
system technology. The Company's integrated power plant solutions
deliver an economically attractive alternative to fossil-fuel
electricity generation today. From raw material sourcing through
end-of-life module recycling, First Solar's renewable energy
systems protect and enhance the environment. For more information
about First Solar, please visit www.firstsolar.com.
For First Solar Investors
This release contains forward-looking statements which are made
pursuant to safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include statements, among other things, concerning: effects on our
financial statements and guidance resulting from the pending tax
matter described in this release, including our assessment of the
likelihood and amount of penalties that may be imposed on us (which
penalties, if any, could cause the estimated financial impact to be
significantly greater than the estimate provided in this release);
our business strategy, including anticipated trends and
developments in and management plans for our business and the
markets in which we operate; future financial results, operating
results, revenues, gross margin, operating expenses, products,
projected costs (including estimated future module collection and
recycling costs), warranties, solar module efficiency and balance
of systems cost reduction roadmaps, restructuring, product
reliability, investments in unconsolidated affiliates and capital
expenditures; our ability to continue to reduce the cost per watt
of our solar modules; our ability to reduce the costs to construct
PV solar power systems; research and development programs and our
ability to improve the conversion efficiency of our solar modules;
sales and marketing initiatives; and competition. These
forward-looking statements are often characterized by the use of
words such as "estimate," "expect," "anticipate," "project,"
"plan," "intend," "believe," "forecast," "foresee," "likely,"
"may," "should," "goal," "target," "might," "will," "could,"
"predict," "continue" and the negative or plural of these words and
other comparable terminology. Forward-looking statements are only
predictions based on our current expectations and our projections
about future events. You should not place undue reliance on these
forward-looking statements. We undertake no obligation to update
any of these forward-looking statements for any reason. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ
materially from those expressed or implied by these statements.
These factors include, but are not limited to, the matters
discussed in Item 1A: "Risk Factors," of our most recent Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other reports filed with the SEC.
FIRST SOLAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
PRELIMINARY
September 30,2015
December 31,2014
ASSETS Current assets: Cash and cash equivalents $ 1,189,703
$ 1,482,054 Marketable securities 619,814 509,032 Accounts
receivable trade, net 328,927 135,434 Accounts receivable, unbilled
and retainage 241,119 76,971 Inventories 379,183 505,088 Balance of
systems parts 104,392 125,083 Deferred project costs 98,421 29,354
Deferred tax assets, net 78,092 91,565 Notes receivable, affiliate
1,279 12,487 Prepaid expenses and other current assets 210,399
202,151 Total current assets 3,251,329 3,169,219 Property,
plant and equipment, net 1,330,054 1,419,988 PV solar power
systems, net 93,420 46,393 Project assets and deferred project
costs 1,030,436 810,348 Deferred tax assets, net 264,200 222,326
Restricted cash and investments 403,160 407,053 Investments in
unconsolidated affiliates and joint ventures 299,103 255,029
Goodwill 84,985 84,985 Other intangibles, net 112,470 119,236
Inventories 108,558 115,617 Notes receivable, affiliates 17,754
9,127 Other assets 65,173 61,670 Total assets $ 7,060,642
$ 6,720,991
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 303,593 $ 214,656 Income
taxes payable 2,028 1,727 Accrued expenses 412,167 388,156 Current
portion of long-term debt 34,082 51,399 Billings in excess of costs
and estimated earnings 74,102 195,346 Payments and billings for
deferred project costs 22,699 60,591 Other current liabilities
43,035 88,702 Total current liabilities 891,706 1,000,577 Accrued
solar module collection and recycling liability 164,304 246,307
Long-term debt 251,395 162,074 Other liabilities 332,392
284,546 Total liabilities 1,639,797 1,693,504 Commitments
and contingencies Stockholders’ equity:
Common stock, $0.001 par value per share;
500,000,000 shares authorized; 100,919,021 and100,288,942 shares
issued and outstanding at September 30, 2015 and December 31,
2014,respectively
101 100 Additional paid-in capital 2,734,161 2,697,558 Accumulated
earnings 2,658,092 2,279,689 Accumulated other comprehensive income
28,491 50,140 Total stockholders’ equity 5,420,845
5,027,487 Total liabilities and stockholders’ equity $ 7,060,642
$ 6,720,991
FIRST SOLAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
PRELIMINARY
Three Months EndedSeptember
30,
Nine Months EndedSeptember 30, 2015
2014 2015 2014 Net sales $
1,271,245 $ 889,310 $ 2,636,671 $ 2,383,821 Cost of sales 786,880
700,023 1,948,842 1,865,098 Gross
profit 484,365 189,287 687,829 518,723 Operating expenses: Research
and development 29,630 37,593 93,865 109,025 Selling, general and
administrative 53,716 66,528 192,305 182,859 Production start-up
3,198 1,406 16,818 1,897 Total
operating expenses 86,544 105,527 302,988
293,781 Operating income 397,821 83,760 384,841 224,942
Foreign currency (loss) gain, net (3,726 ) 169 (7,674 ) (389)
Interest income 5,322 4,297 16,444 13,151 Interest expense, net
(1,775 ) (89 ) (2,795 ) (1,429 ) Other expense, net (1,678 ) (2,476
) (3,729 ) (5,416 ) Income before taxes and equity in earnings of
unconsolidated affiliates 395,964 85,661 387,087 230,859 Income tax
(expense) benefit (49,644 ) 7,108 (10,324 ) (19,579 ) Equity in
earnings of unconsolidated affiliates, net of tax (115 ) (4,345 )
1,640 (6,321 ) Net income $ 346,205 $ 88,424 $
378,403 $ 204,959 Net income per share: Basic $ 3.43
$ 0.88 $ 3.76 $ 2.05 Diluted $ 3.38
$ 0.87 $ 3.72 $ 2.02 Weighted-average
number of shares used in per share calculations: Basic 100,906
100,197 100,713 99,981 Diluted 102,299
101,415 101,845 101,686
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151029006679/en/
First Solar InvestorsSteve
Haymore+1-602-414-9315stephen.haymore@firstsolar.comorFirst
Solar MediaSteve
Krum+1-602-427-3359steve.krum@firstsolar.com
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