First Solar, Inc. Announces Second Quarter 2019 Financial Results
02 August 2019 - 6:05AM
First Solar, Inc. (Nasdaq: FSLR) today announced financial results
for the second quarter ended June 30, 2019. Net sales for the
second quarter were $585 million, an increase of $53 million from
the prior quarter, primarily due to increased module and system
sales in the U.S. and Australia.
The Company reported a second quarter loss per
share of $(0.18), compared to a loss per share of $(0.64) in the
first quarter of 2019.
Cash, restricted cash and marketable securities
at the end of the second quarter decreased to $2.1 billion from
$2.3 billion at the end of the prior quarter, primarily as a result
of continued capital investments in Series 6 manufacturing
capacity.
“We continued to make significant progress in
our Series 6 transition during Q2, with improvements across all
manufacturing metrics,” said Mark Widmar, CEO of First Solar. “We
had record module production and shipments during the second
quarter, and with our recent bookings success we are now
essentially sold out through 2020, with significant bookings
visibility into 2021.”
2019 guidance has been updated as follows:
|
|
|
|
|
|
|
|
2019 Guidance |
Prior |
Current |
|
|
|
Net Sales |
$3.5B to $3.7B |
Unchanged |
|
|
|
Gross Margin % (1) |
18% to 19% |
18.5% to 19.5% |
|
|
|
Operating Expenses (2) |
$370M to $390M |
$360M to $380M |
|
|
|
Operating Income |
$260M to $310M |
$290M to $340M |
|
|
|
Earnings per Share |
$2.25 to $2.75 |
Unchanged |
|
|
|
Net Cash Balance (3) |
$1.7B to $1.9B |
Unchanged |
|
|
|
Capital Expenditures |
$650M to $750M |
Unchanged |
|
|
|
Shipments |
5.4GW to 5.6GW |
Unchanged |
|
|
|
|
|
|
|
(1) |
|
Includes $60 to
$70 million of ramp costs ($45 to $55 million previously) |
|
(2) |
|
Includes $55 to
$65 million of production start-up expense ($70 to $80 million
previously) |
|
(3) |
|
Defined as cash,
restricted cash and marketable securities less expected debt at the
end of 2019 |
|
|
|
|
|
|
|
First Solar has scheduled a conference call for
today, August 1, 2019 at 4:30 p.m. ET to discuss this
announcement. A live webcast of this conference call and
accompanying materials are available at
investor.firstsolar.com.
The guidance figures presented above are subject
to a variety of assumptions and estimates. Investors are encouraged
to listen to the conference call and to review the accompanying
materials which contain more information about First Solar’s 2019
guidance.
An audio replay of the conference call will be
available approximately two hours after the conclusion of the call.
The audio replay will remain available through Thursday, August 8,
2019 and can be accessed by dialing +1 (800) 585-8367 if you are
calling from within the United States or +1 (416) 621-4642 if you
are calling from outside the United States and entering the replay
pass code 2308858. A replay of the webcast will also be available
on the Investors section of the Company’s website approximately
five hours after the conclusion of the call and remain available
for approximately 90 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. All statements in this
release, other than statements of historical fact, are
forward-looking statements. These forward-looking statements
include, but are not limited to, statements concerning: our
financial guidance for 2019; the transition to Series 6 module
manufacturing in 2019; net sales, gross margin, operating expenses,
operating income, earnings per share, net cash balance, capital
expenditures, shipments, bookings, products and our business and
financial objectives for 2019. These forward-looking statements are
often characterized by the use of words such as “estimate,”
“expect,” “anticipate,” “project,” “plan,” “intend,” “seek,”
“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
and therefore speak only as of the date of this release. 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, whether as a result of new information,
future developments or otherwise. 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: structural imbalances in global supply and demand for
PV solar modules; the market for renewable energy, including solar
energy; our competitive position and other key competitive factors;
reduction, elimination, or expiration of government subsidies,
policies, and support programs for solar energy projects; the
impact of public policies, such as tariffs or other trade remedies
imposed on solar cells and modules; our ability to execute on our
long-term strategic plans; our ability to execute on our solar
module technology and cost reduction roadmaps; our ability to
improve the wattage of our solar modules; interest rate
fluctuations and both our and our customers’ ability to secure
financing; the creditworthiness of our offtake counterparties and
the ability of our offtake counterparties to fulfill their
contractual obligations to us; the ability of our customers to
perform under their contracts with us; our ability to attract new
customers and to develop and maintain existing customer and
supplier relationships; our ability to successfully develop and
complete our systems business projects; our ability to convert
existing production facilities to support new product lines, such
as Series 6 module manufacturing; general economic and business
conditions, including those influenced by U.S., international, and
geopolitical events; environmental responsibility, including with
respect to cadmium telluride (“CdTe”) and other semiconductor
materials; claims under our limited warranty obligations; changes
in, or the failure to comply with, government regulations and
environmental, health, and safety requirements; effects resulting
from pending litigation, including the class action lawsuit against
us; future collection and recycling costs for solar modules covered
by our module collection and recycling program; our ability to
protect our intellectual property; our ability to prevent and/or
minimize the impact of cyber-attacks or other breaches of our
information systems; our continued investment in research and
development; the supply and price of components and raw materials,
including CdTe; our ability to attract and retain key executive
officers and associates; and the matters discussed under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Conditions and Results of Operations” of our most
recent Annual Report on Form 10-K and our subsequently filed
Quarterly Reports on Form 10-Q, as supplemented by our other
filings with the Securities and Exchange Commission.
Contacts
First Solar
Investorsinvestor@firstsolar.com
First Solar
Mediamedia@firstsolar.com
|
FIRST SOLAR, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands, except share data) |
(Unaudited) |
|
|
|
June 30, |
|
December 31, |
|
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,221,568 |
|
|
$ |
1,403,562 |
|
Marketable securities |
|
807,561 |
|
|
1,143,704 |
|
Accounts receivable trade, net |
|
269,527 |
|
|
128,282 |
|
Accounts receivable, unbilled and retainage |
|
127,972 |
|
|
458,166 |
|
Inventories |
|
586,621 |
|
|
387,912 |
|
Balance of systems parts |
|
91,728 |
|
|
56,906 |
|
Project assets |
|
1,703 |
|
|
37,930 |
|
Prepaid expenses and other current assets |
|
305,566 |
|
|
243,061 |
|
Total current assets |
|
3,412,246 |
|
|
3,859,523 |
|
Property, plant and equipment,
net |
|
2,006,334 |
|
|
1,756,211 |
|
PV solar power systems,
net |
|
304,657 |
|
|
308,640 |
|
Project assets |
|
528,246 |
|
|
460,499 |
|
Deferred tax assets, net |
|
76,892 |
|
|
77,682 |
|
Restricted cash and
investments |
|
328,591 |
|
|
318,390 |
|
Goodwill |
|
14,462 |
|
|
14,462 |
|
Intangible assets, net |
|
69,119 |
|
|
74,162 |
|
Inventories |
|
149,157 |
|
|
130,083 |
|
Notes receivable,
affiliate |
|
— |
|
|
22,832 |
|
Other assets |
|
248,103 |
|
|
98,878 |
|
Total assets |
|
$ |
7,137,807 |
|
|
$ |
7,121,362 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
242,541 |
|
|
$ |
233,287 |
|
Income taxes payable |
|
15,293 |
|
|
20,885 |
|
Accrued expenses |
|
421,595 |
|
|
441,580 |
|
Current portion of long-term debt |
|
28,312 |
|
|
5,570 |
|
Deferred revenue |
|
112,237 |
|
|
129,755 |
|
Other current liabilities |
|
23,341 |
|
|
14,380 |
|
Total current liabilities |
|
843,319 |
|
|
845,457 |
|
Accrued solar module
collection and recycling liability |
|
136,275 |
|
|
134,442 |
|
Long-term debt |
|
452,976 |
|
|
461,221 |
|
Other liabilities |
|
570,113 |
|
|
467,839 |
|
Total liabilities |
|
2,002,683 |
|
|
1,908,959 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 105,390,383 and 104,885,261 shares issued and
outstanding at June 30, 2019 and December 31, 2018,
respectively |
|
105 |
|
|
105 |
|
Additional paid-in capital |
|
2,826,533 |
|
|
2,825,211 |
|
Accumulated earnings |
|
2,355,406 |
|
|
2,441,553 |
|
Accumulated other comprehensive loss |
|
(46,920 |
) |
|
(54,466 |
) |
Total stockholders’ equity |
|
5,135,124 |
|
|
5,212,403 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,137,807 |
|
|
$ |
7,121,362 |
|
|
FIRST SOLAR, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net sales |
$ |
584,956 |
|
|
$ |
531,978 |
|
|
$ |
309,318 |
|
|
$ |
1,116,934 |
|
|
$ |
876,583 |
|
Cost of sales |
507,774 |
|
|
531,866 |
|
|
317,376 |
|
|
1,039,640 |
|
|
711,843 |
|
Gross profit (loss) |
77,182 |
|
|
112 |
|
|
(8,058 |
) |
|
77,294 |
|
|
164,740 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
50,934 |
|
|
45,352 |
|
|
50,854 |
|
|
96,286 |
|
|
91,980 |
|
Research and development |
24,395 |
|
|
21,877 |
|
|
20,370 |
|
|
46,272 |
|
|
40,694 |
|
Production start-up |
10,437 |
|
|
9,522 |
|
|
24,352 |
|
|
19,959 |
|
|
61,436 |
|
Total operating expenses |
85,766 |
|
|
76,751 |
|
|
95,576 |
|
|
162,517 |
|
|
194,110 |
|
Operating loss |
(8,584 |
) |
|
(76,639 |
) |
|
(103,634 |
) |
|
(85,223 |
) |
|
(29,370 |
) |
Foreign currency gain (loss),
net |
1,726 |
|
|
172 |
|
|
2,422 |
|
|
1,898 |
|
|
(95 |
) |
Interest income |
13,510 |
|
|
14,259 |
|
|
16,865 |
|
|
27,769 |
|
|
28,689 |
|
Interest expense, net |
(8,921 |
) |
|
(10,121 |
) |
|
(6,065 |
) |
|
(19,042 |
) |
|
(11,247 |
) |
Other (loss) income, net |
(4,438 |
) |
|
3,509 |
|
|
(4,328 |
) |
|
(929 |
) |
|
13,606 |
|
(Loss) income before taxes and
equity in earnings |
(6,707 |
) |
|
(68,820 |
) |
|
(94,740 |
) |
|
(75,527 |
) |
|
1,583 |
|
Income tax (expense)
benefit |
(11,744 |
) |
|
1,394 |
|
|
6,164 |
|
|
(10,350 |
) |
|
(5,461 |
) |
Equity in earnings, net of
tax |
(97 |
) |
|
(173 |
) |
|
40,085 |
|
|
(270 |
) |
|
38,338 |
|
Net (loss) income |
$ |
(18,548 |
) |
|
$ |
(67,599 |
) |
|
$ |
(48,491 |
) |
|
$ |
(86,147 |
) |
|
$ |
34,460 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.18 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.82 |
) |
|
$ |
0.33 |
|
Diluted |
$ |
(0.18 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.82 |
) |
|
$ |
0.32 |
|
Weighted-average number of
shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
105,369 |
|
|
105,046 |
|
|
104,776 |
|
|
105,208 |
|
|
104,664 |
|
Diluted |
105,369 |
|
|
105,046 |
|
|
104,776 |
|
|
105,208 |
|
|
106,234 |
|
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From Apr 2024 to May 2024
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From May 2023 to May 2024