First Solar, Inc. (Nasdaq: FSLR) today announced financial results for
the fourth quarter and year ended December 31, 2014. Net sales were
$1,008 million in the quarter, an increase of $119 million from the
third quarter of 2014. The sequential increase in net sales resulted
from the sale of the Solar Gen 2 project, initial revenue recognition on
the Silver State South project and other projects under construction.
Revenue recognition from the Desert Sunlight and Topaz projects were
lower as the projects reached completion.
The Company reported a fourth quarter GAAP earnings per fully diluted
share of $1.89, compared to earnings of $0.87 in the prior quarter. The
increase in net income compared to the prior quarter was due to higher
profit from the sale of the Solar Gen 2 project and project cost
improvements.
Cash and marketable securities at the end of the fourth quarter were
approximately $2.0 billion, an increase of approximately $876 million
compared to the prior quarter. Cash flows from operations were $928
million in the fourth quarter. The increase in cash and marketable
securities during the quarter was due to the sale of the Solar Gen 2
project and the collection of retention payments on the Topaz and Desert
Sunlight projects.
“We closed 2014 with strong execution across all fronts,” said Jim
Hughes, CEO of First Solar. “We have exceeded the earnings per share,
operating cash flow and bookings targets that we set at our 2014 Analyst
Day. In addition we have announced another new record cell efficiency.
With our strong bookings we are well positioned as we enter 2015 and
remain focused on executing to our strategy.”
Additionally, the Company announced yesterday that it is in advanced
negotiations to form a joint YieldCo vehicle with SunPower Corp. into
which each company expects to contribute a portfolio of selected solar
generation assets from their existing portfolio of assets. Additional
details about the joint venture will be provided when they become
available.
The Company also provided guidance for the first quarter of 2015 as
follows:
-
Net Sales of $550 to $650 million
-
Loss of ($0.25) to ($0.35) per fully diluted share
-
Cash used in operating activities of ($400) to ($500) million
Financial guidance for revenue, earnings, and operating cash flow for
the first quarter is lower relative to results in prior periods
primarily due to the completion of the Desert Sunlight and Topaz
projects and the retention of projects on balance sheet in relation to
the announced plan to pursue a joint YieldCo vehicle with SunPower. This
is also expected to weigh on financial results in future quarters over
the near-term. However, the Company believes this strategy will generate
significant value for shareholders over the long-term.
First Solar has scheduled a conference call for today, February 24, 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 Monday, March 2, 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 7310252. 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: 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, warranties, solar module efficiency and balance of systems (BoS)
cost reduction roadmaps, restructuring, product reliability 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 photovoltaic
(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 CONSOLIDATED
BALANCE SHEETS (In thousands, except share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,482,054
|
|
|
|
$
|
1,325,072
|
|
Marketable securities
|
|
|
509,032
|
|
|
|
439,102
|
|
Accounts receivable trade, net
|
|
|
135,434
|
|
|
|
136,383
|
|
Accounts receivable, unbilled and retainage
|
|
|
76,971
|
|
|
|
521,323
|
|
Inventories
|
|
|
505,088
|
|
|
|
388,951
|
|
Balance of systems parts
|
|
|
125,083
|
|
|
|
133,731
|
|
Deferred project costs
|
|
|
29,354
|
|
|
|
556,957
|
|
Deferred tax assets, net
|
|
|
91,565
|
|
|
|
63,899
|
|
Assets held for sale
|
|
|
20,728
|
|
|
|
132,626
|
|
Notes receivable, affiliate
|
|
|
12,487
|
|
|
|
—
|
|
Prepaid expenses and other current assets
|
|
|
202,670
|
|
|
|
94,720
|
|
Total current assets
|
|
|
3,190,466
|
|
|
|
3,792,764
|
|
Property, plant and equipment, net
|
|
|
1,402,304
|
|
|
|
1,385,084
|
|
PV solar power systems, net
|
|
|
46,393
|
|
|
|
—
|
|
Project assets and deferred project costs
|
|
|
810,348
|
|
|
|
720,916
|
|
Deferred tax assets, net
|
|
|
222,326
|
|
|
|
296,603
|
|
Restricted cash and investments
|
|
|
407,053
|
|
|
|
279,441
|
|
Investments in unconsolidated affiliates and joint ventures
|
|
|
255,029
|
|
|
|
17,321
|
|
Goodwill
|
|
|
84,985
|
|
|
|
84,985
|
|
Other intangibles, net
|
|
|
119,236
|
|
|
|
117,416
|
|
Inventories
|
|
|
115,617
|
|
|
|
129,664
|
|
Note receivable, affiliate
|
|
|
9,127
|
|
|
|
—
|
|
Other assets
|
|
|
61,555
|
|
|
|
59,308
|
|
Total assets
|
|
|
$
|
6,724,439
|
|
|
|
$
|
6,883,502
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
214,656
|
|
|
|
$
|
261,333
|
|
Income taxes payable
|
|
|
1,727
|
|
|
|
6,707
|
|
Accrued expenses
|
|
|
388,156
|
|
|
|
320,077
|
|
Current portion of long-term debt
|
|
|
51,918
|
|
|
|
60,543
|
|
Billings in excess of costs and estimated earnings
|
|
|
195,346
|
|
|
|
117,766
|
|
Payments and billings for deferred project costs
|
|
|
60,591
|
|
|
|
642,214
|
|
Other current liabilities
|
|
|
88,702
|
|
|
|
179,421
|
|
Total current liabilities
|
|
|
1,001,096
|
|
|
|
1,588,061
|
|
Accrued solar module collection and recycling liability
|
|
|
246,307
|
|
|
|
225,163
|
|
Long-term debt
|
|
|
165,003
|
|
|
|
162,780
|
|
Other liabilities
|
|
|
284,546
|
|
|
|
404,381
|
|
Total liabilities
|
|
|
1,696,952
|
|
|
|
2,380,385
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 100,288,942 and 99,506,941 shares issued and
outstanding at December 31, 2014 and 2013, respectively
|
|
|
100
|
|
|
|
100
|
|
Additional paid-in capital
|
|
|
2,697,558
|
|
|
|
2,646,022
|
|
Accumulated earnings
|
|
|
2,279,689
|
|
|
|
1,882,771
|
|
Accumulated other comprehensive income (loss)
|
|
|
50,140
|
|
|
|
(25,776
|
)
|
Total stockholders’ equity
|
|
|
5,027,487
|
|
|
|
4,503,117
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
6,724,439
|
|
|
|
$
|
6,883,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST SOLAR, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Net sales
|
|
|
$
|
1,007,993
|
|
|
$
|
768,437
|
|
|
|
$
|
3,391,814
|
|
|
$
|
3,308,989
|
|
Cost of sales
|
|
|
699,611
|
|
|
579,141
|
|
|
|
2,564,709
|
|
|
2,446,235
|
|
Gross profit
|
|
|
308,382
|
|
|
189,296
|
|
|
|
827,105
|
|
|
862,754
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
34,944
|
|
|
38,421
|
|
|
|
143,969
|
|
|
134,300
|
|
Selling, general and administrative
|
|
|
70,968
|
|
|
65,661
|
|
|
|
253,827
|
|
|
270,261
|
|
Production start-up
|
|
|
3,249
|
|
|
—
|
|
|
|
5,146
|
|
|
2,768
|
|
Restructuring and asset impairments
|
|
|
—
|
|
|
24,892
|
|
|
|
—
|
|
|
86,896
|
|
Total operating expenses
|
|
|
109,161
|
|
|
128,974
|
|
|
|
402,942
|
|
|
494,225
|
|
Operating income
|
|
|
199,221
|
|
|
60,322
|
|
|
|
424,163
|
|
|
368,529
|
|
Foreign currency loss, net
|
|
|
(2,628
|
)
|
|
(104
|
)
|
|
|
(3,017
|
)
|
|
(259
|
)
|
Interest income, net
|
|
|
4,326
|
|
|
4,219
|
|
|
|
16,048
|
|
|
14,868
|
|
Other income (expense), net
|
|
|
5,213
|
|
|
(1,945
|
)
|
|
|
(5,203
|
)
|
|
(4,758
|
)
|
Income before taxes and equity in earnings of unconsolidated
affiliates
|
|
|
206,132
|
|
|
62,492
|
|
|
|
431,991
|
|
|
378,380
|
|
Income tax (expense) benefit
|
|
|
(10,545
|
)
|
|
2,982
|
|
|
|
(30,124
|
)
|
|
(25,179
|
)
|
Equity in earnings of unconsolidated affiliates, net of tax
|
|
|
(3,628
|
)
|
|
(214
|
)
|
|
|
(4,949
|
)
|
|
(163
|
)
|
Net income
|
|
|
$
|
191,959
|
|
|
$
|
65,260
|
|
|
|
$
|
396,918
|
|
|
$
|
353,038
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.91
|
|
|
$
|
0.66
|
|
|
|
$
|
3.97
|
|
|
$
|
3.77
|
|
Diluted
|
|
|
$
|
1.89
|
|
|
$
|
0.64
|
|
|
|
$
|
3.91
|
|
|
$
|
3.70
|
|
Weighted-average number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
100,246
|
|
|
99,471
|
|
|
|
100,048
|
|
|
93,697
|
|
Diluted
|
|
|
101,509
|
|
|
101,260
|
|
|
|
101,643
|
|
|
95,468
|
|
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