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Solar PV Corporate News Release
Trina Solar Announces Third Quarter 2016 Results
Nov 23, 2016
Canadian Solar Reports Third Quarter 2016 Results
Nov 21, 2016
JASolar Announces Third Quarter 2016 Financial Results
Nov 17, 2016
JinkoSolar Announces Third Quarter 2016 Financial Results
Nov 16, 2016
SunPower Reports Third Quarter 2016 Results
Nov 10, 2016
First Solar, Inc. Announces Third Quarter 2016 Financial Results
Nov 03, 2016
Hanwha Q CELLS Reports Second Quarter 2016 Results
Aug 23, 2016
Yingli Green Energy Reports Second Quarter 2016 Results
Aug 23, 2016
Canadian Solar Reports Second Quarter 2016 Results
Aug 18, 2016
JA Solar Announces Second Quarter 2016 Results
Aug 17, 2016
SunPower Reports Second Quarter 2016 Results
Aug 10, 2016
First Solar, Inc. Announces Second Quarter 2016 Financial Results
Aug 04, 2016
First Solar, Inc. Announces First Quarter 2016 Financial Results
Apr 27, 2016
JinkoSolar Announces Fourth Quarter and Full Year 2015 Financial Results
Mar 01, 2016
First Solar, Inc. Announces Fourth Quarter & Full Year 2015 Financial Results
Feb 24, 2016
SunPower Corp. announced financial results for its fourth quarter and fiscal year ended Jan. 3, 2016
Feb 18, 2016
Trina Solar Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company
Dec 14, 2015
Hanwha Q CELLS Reports Third Quarter 2015 Results
Nov 19, 2015
JinkoSolar Announces Third Quarter 2015 Financial Results
Nov 19, 2015
JA Solar Announces Third Quarter 2015 Results
Nov 17, 2015
SunPower Announces Fiscal Year 2016 Guidance
Nov 12, 2015
SunEdison Reports Third Quarter 2015 Results
Nov 10, 2015
Canadian Solar Reports Third Quarter 2015 Results
Nov 10, 2015
Yingli Green Energy Reports Second Quarter 2015 Results
Sep 08, 2015
Hanwha Q CELLS Reports Second Quarter 2015 Results
Aug 27, 2015
TSMC to Cease Solar Manufacturing Operations
Aug 25, 2015
JinkoSolar Announces Better-Than-Expected Second Quarter 2015 Financial Results
Aug 20, 2015
Trina Solar Announces $43.1 million of Net Profits for Second Quarter 2015 Results
Aug 18, 2015
First Solar, Inc. Announces Second Quarter 2015 Financial Results with $896 million of Net sales.
Aug 05, 2015
Sunpower announced financial results of 377 million net profits for its second fiscal quarter ended June 28, 2015.
Jul 29, 2015
8point3 Energy Partners LP, a YieldCo Formed by First Solar, Inc. and SunPower Corporation, Announces Pricing of its Ini
Jun 19, 2015
JA Solar and Essel Infraprojects Limited Sign MOU on 500MW PV Joint Venture
May 25, 2015
First Solar, Inc. Announces First Quarter 2015 Financial Results with net loss of USD 62 million
May 01, 2015
Israeli Parliament Solar Project Adopts JA Solar Modules
Apr 07, 2015
JA Solar Supplies Modules Again to First Large-Scale Solar Farm in Central America
Mar 16, 2015
Hyundai offers compact 250W high-performance modules for UK rooftop market
Mar 12, 2015
JA Solar Launching 1500V PV Module
Mar 09, 2015
Trina Solar Announces New Efficiency Records for Silicon Solar Cells
Mar 05, 2015
Canadian Solar Reports Fourth Quarter and Full Year 2014 Results
Mar 05, 2015
JA Solar Makes Breakthrough in South Pacific Market in 2014
Feb 05, 2015
First Solar Achieves Efficiency, Durability Milestones
Feb 05, 2015
JA Solar Reaches 100MWp of PV Module Shipments to Solarcentury for UK Projects in 2014
Jan 05, 2015
JA Solar Supplies 100MW of Modules to First Large-Scale Solar Farm in Pakistan
Jan 05, 2015
Hanwha Solarone Files Shareholder Circular for Acquisition of Hanwha Q CELLS
Dec 29, 2014
Motech and Topcell Announced the Signing of Merger Agreement
Dec 26, 2014
JA Solar Supplies 100MW of Modules to First Large-Scale Solar Farm in Pakistan
Dec 08, 2014
Yingli Green Energy Reports Third Quarter 2014 Results
Nov 25, 2014
Trina Solar Announces Third Quarter 2014 Results
Nov 24, 2014
Hanwha SolarOne Reports Third Quarter 2014 Results
Nov 21, 2014
JA Solar Announces Third Quarter 2014 Results
Nov 19, 2014
Trina Solar Announces New Efficiency Records for Silicon Solar Cells
Nov 17, 2014
JA Solar Sets Power Output Record of over 280W for Multi-Si 60-cells Solar Modules
Nov 17, 2014
SunPower Announces Fiscal Year 2015 Guidance
Nov 13, 2014
WINAICO launches patented micro-crack preventing HeatCap technology at PV Taiwan
Oct 22, 2014
Trina Solar Announces Fourth Quarter and Full Year 2014 Results
Jan 01, 1970

Canadian Solar Reports Second Quarter 2016 Results

GUELPH, Ontario, Aug. 18, 2016 -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ), one of the world's largest solar power companies, today announced its financial results for the second quarter ended June 30, 2016. 

Second Quarter 2016 Highlights

Total solar module shipments recognized in revenue were 1,290 MW, compared to 1,172 MW recognized in revenue in the first quarter of 2016, and second quarter guidance in the range of 1,200 MW to 1,250 MW.

Net revenue was $805.9 million, compared to $721.4 million in the first quarter of 2016, and second quarter guidance in the range of $710 million to $760 million.

Net revenue from the total solutions business as a percentage of total net revenue was 8.5%, compared to 6.3% in the first quarter of 2016.

Gross margin was 17.2%, compared to 15.6% in the first quarter of 2016, and second quarter guidance in the range of 15.0% to 17.0%.

Net income attributable to Canadian Solar was $40.4 million, or $0.68 per diluted share, compared to $22.6 million, or $0.39 per diluted share, in the first quarter of 2016.

Cash, cash equivalents and restricted cash balances at the end of the quarter totaled $1.0 billion, compared to $1.0 billion at the end of the first quarter of 2016.

Net cash provided by operating activities was approximately $145.2 million, compared to net cash used in operating activities of $108.3 million in the first quarter of 2016.

The Company now owns a portfolio of solar power plants in operation totaling 472 MWp, with an estimated resale value of approximately $850.0 million and profit margin contribution[1] in the mid-teens.

[1] The sale of built-to-sell projects is recorded as revenue, and the net gain or loss from a sale of built-to-own projects is recorded as other income in the income statement

Second Quarter 2016 Results

Net revenue in the second quarter of 2016 was $805.9 million, up 11.7% from $721.4 million in the first quarter of 2016 and 26.6% from $636.7 million in the second quarter of 2015. Module shipments recognized in revenue totaled 1,290 MW, compared to 1,172 MW recognized in revenue in the first quarter of 2016 and 809 MW recognized in revenue in the second quarter of 2015. Solar module shipments recognized in revenue in the second quarter of 2016 included 18.7 MW used in the total solutions business, compared to 24.8 MW in the first quarter of 2016 and 90.0 MW in the second quarter of 2015.

By geography, in the second quarter of 2016, sales to the Americas represented 47.6% of net revenue, sales to Asia represented 39.5% of net revenue, and sales to Europe and others represented 12.9% of net revenue, compared to 43.1%, 44.4% and 12.5% respectively, in the first quarter of 2016 and 47.6%, 45.5%, 6.9% respectively, in the second quarter of 2015.

Q2 2016

Q1 2016

Q2 2015

US$M

%

US$M

%

US$M

%

The Americas

383.9

47.6

311.3

43.1

302.8

47.6

Asia

318.4

39.5

320.2

44.4

290.0

45.5

Europe and Others

103.6

12.9

89.9

12.5

43.9

6.9

Total

805.9

100

721.4

100

636.7

100

Gross profit in the second quarter of 2016 was $138.5 million, compared $112.5 million in the first quarter of 2016 and $96.5 million in the second quarter of 2015. Gross margin in the second quarter of 2016 was 17.2%, compared to 15.6% in the first quarter of 2016 and 15.2% in the second quarter of 2015. The sequential increase in gross margin was primarily due to lower module manufacturing cost.

Total operating expenses were $98.9 million in the second quarter of 2016, up 33.5% from $74.1 million in the first quarter of 2016 and up 54.4% from $64.1 million in the second quarter of 2015.  The sequential and year-over-year increases in total operating expenses were primarily due to higher general and administrative expenses.

Selling expenses were $33.9 million in the second quarter of 2016, down 2.7% from $34.8 million in the first quarter of 2016 and up 5.0% from $32.2 million in the second quarter of 2015. The sequential decrease in selling expenses was primarily due to lower shipping and handling expenses and lower external sales commissions partially offset by higher labor costs. The year-over-year slight increase in selling expenses was primarily due to higher labor costs and higher shipment volume, partially offset by lower shipping and handling unit costs.

General and administrative expenses were $60.0 million in the second quarter of 2016, up 72.3% from $34.8 million in the first quarter of 2016 and up 118.1% from $27.5 million in the second quarter of 2015.  The sequential and year-over-year increases in general and administrative expenses were primarily due to higher non-recurring professional service fees, including the write-off of $10.8 million in deferred expenses related to the now terminated YieldCo launch, and tornado damage to the Company's solar cell factory in Funing County, Jiangsu Province, estimated at approximately $7.6 million.  Research and development expenses were $5.1 million in the second quarter of 2016, compared to $4.5 million in the first quarter of 2016 and $4.3 million in the second quarter of 2015.

Income from operations was $39.6 million in the second quarter of 2016, compared to $38.4 million in the first quarter of 2016, and $32.5 million in the second quarter of 2015. Operating margin was 4.9% in the second quarter of 2016, compared to 5.3% in the first quarter of 2016 and 5.1% in the second quarter of 2015.

Non-cash depreciation and amortization charges were approximately $25.5 million in the second quarter of 2016, compared to $25.7 million in the first quarter of 2016, and $22.7 million in the second quarter of 2015. Non-cash equity compensation expense was $1.9 million in the second quarter of 2016, compared to $2.5 million in the first quarter of 2016, and $2.0 million in the second quarter of 2015.

Interest expense was $11.9 million in the second quarter of 2016, compared to $16.1 million in the first quarter of 2016, and $12.9 million in the second quarter of 2015.

Interest income was $2.4 million in the second quarter of 2016, compared to $3.4 million in the first quarter of 2016 and $4.1 million in the second quarter of 2015. 

The Company recorded a loss on change in fair value of derivatives of $1.6 million in the second quarter of 2016, compared to a gain on change in fair value of derivatives of $2.7 million in the first quarter of 2016 and a gain on change in fair value of derivatives of $1.6 million in the second quarter of 2015. The loss on change in fair value of derivatives of $1.6 million in the second quarter of 2016 included a foreign currency hedging loss of $5.9 million, a loss in change in fair value of swap/swaption for projects in the U.S, Canada and U.K. totaling $1.6 million, and a gain on change in fair value of warrants of $5.9 million. The warrants were issued in conjunction with the $180 million in financing arranged by Credit Suisse in the fourth quarter of 2015.  These warrants can be settled in cash at the discretion of the holder and as a result are liability derivatives which were fair valued at issuance and are subsequently marked to market at the end of each reporting period. 

The Company recorded a foreign exchange gain in the second quarter of 2016 of $24.9 million compared to a foreign exchange gain of $8.5 million in the first quarter of 2016 and a foreign exchange loss of $4.4 million in the second quarter of 2015.

Income tax expense was $16.3 million in the second quarter of 2016, compared to $12.3 million in the first quarter of 2016 and $2.7 million in the second quarter of 2015.

Net income attributable to Canadian Solar was $40.4 million, or $0.68 per diluted share, in the second quarter of 2016, compared to net income of $22.6 million, or $0.39 per diluted share, in the first quarter of 2016, and net income of $17.9 million, or $0.31 per diluted share, in the second quarter of 2015.

Financial Condition

The Company had $1.0 billion of cash, cash equivalents and restricted cash as of June 30, 2016, compared to $1.0 billion as of March 31, 2016. 

Accounts receivable, net of allowance for doubtful accounts, at the end of the second quarter of 2016 were $356.7 million, compared to $394.0 million at the end of the first quarter of 2016. Accounts receivable turnover was 60 days in the second quarter of 2016, compared to 72 days in the first quarter of 2016.

Inventories at the end of the second quarter of 2016 were $309.7 million, compared to $413.2 million at the end of the first quarter of 2016. Inventory turnover was 51 days in the second quarter of 2016, compared to 58 days in the first quarter of 2016.

Accounts and notes payable at the end of the second quarter of 2016 were $937.3 million, compared to $961.2 million at the end of the first quarter of 2016.

Short-term borrowings at the end of the second quarter of 2016 were $1.37 billion, compared to $1.35 billion at the end of the first quarter of 2016. Long-term debt at the end of the second quarter of 2016 was $828.5 million, compared to $818.5 million at the end of the first quarter of 2016. Senior convertible notes totaled $128.0 million at the end of the second quarter of 2016, compared to $132.2 million at the end of the first quarter of 2016. Short-term borrowings and long-term debt directly related to utility-scale solar power projects totaled $834.9 million at the end of the second quarter of 2016, compared to $758.9 million at the end of the first quarter of 2016.

At the end of the second quarter of 2016, the Company booked approximately $1.8 billion of solar power plant assets under non-current assets compared to $1.6 billion at the end of the first quarter of 2016. These assets include plants owned and operated and plants under construction. 

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: "We are pleased with our results for the second quarter which again came in above our guidance.  Our core solar module and project businesses remain strong, with a healthy balance sheet to support our near and long-term plan.  Our strategic decision to no longer pursue a YieldCo reflects the market environment and our primary focus on extracting the highest value for shareholders from our operating assets.  As a global leader, we are optimistic and remain favorably positioned moving forward.  Our low cost manufacturing structure, project asset scale, consistent execution and conservative strategy are helping us to mitigate the impact of headwinds facing the broader market, which are realistically never quite as bad as investors may think.   Our energy business now has approximately 472 MWp of solar power plants in operation, and approximately 900 MWp of additional solar power plants, after adjusting for our effective ownership, that will reach commercial operation in the second half of 2016.  Once completed, we will own approximately 1.37GWp of operating solar power plants, with a resale value of approximately $2.1 billion. We are actively pursuing several regional options to monetize these assets in the second half of 2016 and 2017."

Dr. Huifeng Chang, Senior Vice President and Chief Financial Officer of Canadian Solar, added: "We achieved revenue and gross margin above our guidance in the second quarter of 2016.  We benefited from a combination of strong demand for our modules, better than expected selling prices and solid cost control at our factories. We were also able to reduce inventory levels by over $100 million, secure financing for our solar power projects and sign the first agreement to monetize our solar power plants in China.  Our solar project construction schedule in the U.S., Japan, China and the U.K. remain on schedule.  In order to provide improved visibility into our operating plan, we made the formal decision to no longer launch a YieldCo.  We are instead implementing a flexible, localized strategy with respect to our solar project asset monetization.  We expect this decision and added clarity will help investors to more appropriately reflect the higher value of our business and operating assets."  

Utility Scale Solar Project Pipeline

The Company's utility-scale solar project pipeline totals 20.4 GWp, including approximately 2.4 GWp of projects in late-stage development, and 18.0 GWp in early- to mid-stage development. The Company cautions that some of the projects under development may fail to secure all the required permits and grid-connection approvals and as a result may not reach completion. 

Late-Stage Solar Project Pipeline

Canadian Solar's late-stage, utility-scale solar project pipeline totals approximately 2.4 GWp, of which 1,263 MWp are in the U.S., 576 MWp are in Japan, 384 MWp are in Brazil, 121 MWp are in China, 63 MWp are in Mexico, and 19 MWp are in the United Kingdom.

In the United States, seven of the Company's solar projects totaling 1,185 MWp are currently under construction with Barren Ridge, Mustang and Tranquillity expected to reach commercial operation before the end of September of 2016, while Astoria 1, Astoria 2, Garland and Roserock are expected to reach commercial operation before the end of December 2016. The Company's late-stage, utility-scale solar project pipeline in the U.S. is detailed in the table below:

Project

Gross MWp

Location

Status

Expected COD

Astoria 1

131

CA

Construction

2016

Astoria 2

100

CA

Construction

2016

Barren Ridge

78

CA

Construction

2016

Mustang

134

CA

Construction

2016

Tranquillity

258

CA

Construction

2016

Roserock

212

TX

Construction

2016

Garland

272

CA

Construction

2016

Project A

52

CA

Development

2017

Project B

26

CA

Development

2018

Total

1,263

In Japan, during the second quarter of 2016, the Company started commercial operation of two solar power plants, with a total capacity of approximately 700 KWp. As of August 1, 2016, the Company's pipeline of late-stage utility-scale solar power projects in development totaled approximately 576 MWp, with 112 MWp in construction and an additional 134.7 MWp at the ready-to-build stage. 

The expected commercial operation schedule of the Company's late-stage utility-scale solar power projects in Japan is detailed below:

Utility Scale Pipeline in Japan: Expected COD Schedule - MWp

2016

2017

2018

2019

2020

2021

2022

Total

44

109

156

48

114

42

63

576

METI has recently made two rule changes that will affect the Company's pipeline in Japan. In April 2016, METI announced that solar power projects that fail to execute an interconnection agreement with the applicable utility operator by April 1, 2017 will lose the approved feed-in tariff ("FIT"). In addition, in June 2016, METI announced that solar power projects which have not executed the interconnection agreement by August 1, 2016 must achieve commercial operation date (COD) by April 1, 2020.  Solar power projects that execute an interconnection agreement after August 1, 2016, (and before April 1, 2017) but do not reach commercial operation by the April 1, 2020 deadline will be subject to a penalty of either: 1) A FIT reduction of 5%/year or 2) reduction in the term of the FIT contract. The detailed penalty rules will be decided by METI's Calculation Committee for Procurement Price in the coming months.

As of August 1, 2016, Canadian Solar had executed interconnection agreements for 376.2 MWp of projects. The Company expects that, by April 1, 2017 it will have executed interconnection agreements for an additional 131.4 MWp of projects, thereby securing the existing FIT contract subject to meeting the COD deadline. The Company is working to advance an additional 89.4 MWp of projects, so that the interconnection agreements can be executed by April 1, 2017 in order to secure the existing FIT contract.

During the second quarter of 2016 the Company connected to the grid one solar power plant in China totaling 22 MWp, bringing its total to 218MWp of solar power plants in operation in China.

Solar Power Plants in Operation

In addition to its utility-scale solar project development pipeline, the Company now has a portfolio of solar power plants in operation totaling approximately 472 MWp. Revenue from the sale of electricity from these plants in the second quarter of 2016 totaled $22.5 million, compared to $10.2 million in the first quarter of 2016. The resale value of these plants is estimated at approximately $850.0 million, with expected profit margin contribution in the mid-teens. The market situation may however change, resulting in different resale values when the Company sell these projects. The sale of projects recorded on the balance sheet under project assets (built-to-sell) will be recorded as revenue once revenue recognition criteria is met, and the gain from sale of projects recorded on the balance sheet under property plant and equipment (built-to-own) will be recorded as other operating income in the income statement.

Plants in Operation - MWp

Canada

Japan

UK

China

Other

Total

100

21

115

218

18

472

Manufacturing Capacity  

The Company has revised its 2016 manufacturing capacity, as summarized in the table below:

Manufacturing Capacity Roadmap - MW

31-Dec-2015

30-Jun-2016

31-Dec-2016

Wafer

400

400

1,300

Cell

2,700

2,200

3,050

Module

4,330

4,330

5,800

The Company expects to increase its wafer capacity using new diamond wire-saw technology. This technology works compatibly with our proprietary Onyx black silicon multi-crystalline solar cell technology, significantly increasing solar cell efficiency while reducing silicon usage and therefore manufacturing cost. The Company's wafer manufacturing capacity is expected to reach 1.3 GW by the end of 2016, of which at least 900MW is expected to utilize diamond wire-saws.

As previously disclosed, a tornado damaged the Company's solar cell factory in Funing County Jiangsu Province on June 23, 2016. The Company responded promptly by dispatching its internal emergency response team to work with local government entities to support its employees and the local communities. Although damage to the property and manufacturing equipment was severe, there have been no casualties among the Company's employees. The recovery effort at the Funing factory is currently under way. The Company has removed damaged equipment from the site and together with its insurers, is carrying out an appraisal of damage caused to the factory and manufacturing equipment. The Company expects to have full capacity restored at this facility by the second quarter of 2017 and expects to recover substantially all of its financial losses through insurance. 

The Company's cell manufacturing capacity is expected to reach 3.05 GW by the end of 2016, which includes the new 850 MW cell manufacturing plant located in South Eastern Asia, to be commissioned in September of 2016, offset by the temporary reduction of 1.0GW capacity in the tornado affected factory in Funing

Based on its latest market assessment, the Company has decided to slow down solar module capacity expansion. The Company now expects internal module capacity to reach 5.8GW by the end of year, instead of 6.4GW as disclosed in the past. This includes 650 MW in South Eastern Asia already commissioned this month and 360 MW in Brazil to be commissioned in September of 2016.

Business Outlook

The Company's business outlook is based on management's current views and estimates with respect to operating and market conditions, its current order book and the global financing environment. It is also subject to uncertainty relating to customer final demand and solar project construction schedule.  Management's views and estimates are subject to change without notice.

For the third quarter of 2016, the Company expects total solar module shipments to be in the range of approximately 1.2 GW to 1.3 GW, including approximately 10 MW of shipments to the Company's utility-scale solar power projects that may not be recognized in third quarter 2016 revenue. Total revenue for the third quarter of 2016 is expected to be in the range of $660 million to $710 million, with gross margin expected to be between 14% and 16%. We have previously announced an agreement to sell two of our solar power plants in China. We expect the close of that transaction in Q4, therefore, our revenue guidance for the third quarter of 2016 does not include the sale of project assets.

For the full year 2016, the Company maintains its guidance for total module shipments to be in the range of approximately 5.4 GW to 5.5 GW, with approximately 5.0 GW recognized in revenue. Management also maintains its revenue guidance for the full year 2016 to be in the range of $3.0 billion to 3.2 billion. The Company is actively exploring opportunities to monetize its solar power plant assets, and subject to timing of these sales reported revenue may exceed the Company's revenue guidance.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: "Canadian Solar is in an excellent position to compete as we execute on our proven, long-term strategy.  We are an industry leader in quality, performance, efficiency and cost.  Our diversified project pipeline and strong backlog further sets us apart.  Importantly, we remain in the early stages of solar adoption, with our key markets in the U.S., Japan and China underpenetrated.  We are reducing the cost of incoming materials and processing cost in the meantime to maintain a mid-teen gross margin for our manufacturing business during the industry headwinds, while further reducing inventory and tightening credit controls. Our ongoing efforts to upgrade our technology and to improve our cost structure through selected capacity expansion are on track and we expect to end 2016 with 3.1 GW of internal cell capacity, including 850W in a tariff free location in South East Asia. At the same time, we continue to make progress as one of the leading developers and owners of high quality solar power plants around the world, with 472MW of solar power plants in operation and over 1.0GW of solar power plants under construction. Our focus remains on maximizing profitability, sustainable free cash flow and building shareholder value."

Recent Developments

On July 11, 2016, Canadian Solar announced that it had entered into a private placement with Prudential Capital Group, pursuant to which, Prudential Capital Group agreed to purchase non-recourse notes with principal amount totaling approximately JPY6.2 billion (US$60.0 million). The proceeds from the private placement have been used to finance a portfolio of solar power projects in Japan totaling 21.2MWp.

On July 6, 2016, Canadian Solar announced that it had entered into a project sale agreement to sell its operating solar power projects in Funing, Jiangsu, China to Create Technology & Science Co., Ltd. for approximately RMB218.5 million (US$32.8 million).  

On May 23, 2016, Canadian Solar announced that it had closed a £36.4 million (US$52 million) project financing facility with BayernLB to refinance a portfolio of four solar power plants in the UK, totaling 40.2MWp.

About Canadian Solar Inc.

Founded in 2001 in Canada, Canadian Solar is one of the world's largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar also has a geographically diversified pipeline of utility-scale power projects in various stages of development. In the past 14 years, Canadian Solar has successfully delivered over 15 GW of premium quality modules to over 90 countries around the world. Furthermore, Canadian Solar is one of the most bankable companies in the solar industry, having been publicly listed on NASDAQ since 2006. For additional information about the company, visit the Company's website or follow Canadian Solar on LinkedIn.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release regarding the Company's expected future shipment volumes, gross margins, business prospects and future quarterly or annual results, particularly the management quotations and the statements in the "Business Outlook" section, are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as Japan, the U.S., India and China; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20-F filed on April 20, 2016. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

 

FINANCIAL TABLES FOLLOW

 

 

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Operations

(In Thousands of US Dollars, Except Share And Per Share Data And Unless Otherwise Stated)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

Net revenues

$  805,906

$ 721,422

$   636,651

$  1,527,328

$   1,497,542

Cost of revenues

667,437

608,951

540,113

1,276,388

1,248,043

Gross profit

138,469

112,471

96,538

250,940

249,499

Operating expenses:

Selling expenses

33,864

34,790

32,239

68,654

73,078

General and administrative expenses

59,974

34,800

27,498

94,774

57,030

Research and development expenses

5,052

4,505

4,315

9,557

8,182

Total operating expenses

98,890

74,095

64,052

172,985

138,290

Income from operations

39,579

38,376

32,486

77,955

111,209

Other income (expenses):

Interest expense

(11,889)

(16,130)

(12,878)

(28,019)

(24,079)

Interest income

2,392

3,386

4,078

5,778

8,393

Gain (loss) on change in fair value of

derivatives

(1,632)

2,664

1,585

1,032

9,462

Foreign exchange gain (loss)

24,936

8,511

(4,432)

33,447

(5,466)

Investment income

1,070

88

-

1,158

2,342

Gain on repurchase of convertible notes

551

1,909

-

2,460

-

Others

-

-

-

-

389

Other income (expenses),net

15,428

428

(11,647)

15,856

(8,959)

Income before income taxes and equity in

earnings (loss) of unconsolidated investees

55,007

38,804

20,839

93,811

102,250

Income tax expense

(16,304)

(12,253)

(2,680)

(28,557)

(22,387)

Equity in earnings (loss) of unconsolidated

investees

1,374

(2,762)

410

(1,388)

482

Net income

40,077

23,789

18,569

63,866

80,345

Less: Net income (loss) attributable to non-

controlling interests

(302)

1,205

707

903

1,154

Net income attributable to Canadian Solar

Inc.

$  40,379

$   22,584

$    17,862

$    62,963

$      79,191

Earnings per share - basic

$    0.70

$     0.40

$     0.32

$      1.10

$       1.43

Shares used in computation - basic

57,605,169

56,901,349

55,786,475

57,253,259

55,534,166

Earnings per share - diluted

$    0.68

$     0.39

$     0.31

$      1.07

$       1.36

Shares used in computation - diluted

61,040,478

57,810,531

57,229,267

60,996,903

60,343,942

 

 

 

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(In Thousands of US Dollars)

 Three Months Ended

 Six Months Ended

 June 30,

 March 31,

 June 30,

 June 30,

 June 30,

2016

2016

2015

2016

2015

Net Income

40,077

23,789

18,569

63,866

80,345

Other comprehensive income (net of tax of nil):

Foreign currency translation adjustment

(10,680)

22,675

21,008

11,995

(15,866)

Gain (loss) on commodity hedge

(3,498)

1,632

-

(1,866)

-

Loss on interest rate swap

(1,959)

-

-

(1,959)

-

Comprehensive income

23,940

48,096

39,577

72,036

64,479

Less: comprehensive income attributable to non-

controlling interests

103

2,046

109

2,149

2,897

Comprehensive income attributable to Canadian

Solar Inc.

23,837

46,050

39,468

69,887

61,582

 

 

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets

(In Thousands of US Dollars)

June 30,

December 31,

2016

2015

Current assets:

Cash and cash equivalents

495,112

553,079

Restricted cash - current

496,431

534,707

Accounts receivable trade, net

356,685

426,803

Accounts receivable, unbilled

6,389

8,206

Amounts due from related parties

98,635

104,579

Inventories

309,679

334,489

Value added tax recoverable

46,395

44,615

Advances to suppliers - current

25,179

31,886

Derivative assets - current

9,494

6,259

Project assets - current

137,344

111,317

Prepaid expenses and other current assets

227,088

108,153

Total current assets

2,208,431

2,264,093

Restricted cash - non-current

15,187

46,897

Property, plant and equipment, net

277,622

331,052

Solar power systems, net

1,765,370

1,200,441

Deferred tax assets, net

124,552

97,134

Advances to suppliers - non-current

102,035

27,745

Prepaid land use rights

29,131

29,092

Investments in affiliates

179,084

187,131

Intangible assets, net

80,971

78,938

Goodwill

7,617

7,609

Derivative assets - non-current

1,725

2,072

Project assets - non-current

7,988

2,814

Other non-current assets

141,937

142,236

TOTAL ASSETS

4,941,650

4,417,254

Current liabilities:

Short-term borrowings

1,370,805

1,156,576

Accounts and notes payable

937,263

985,757

Amounts due to related parties

56,122

90,002

Other payables

171,781

151,174

Advances from customers

64,759

76,207

Derivative liabilities - current

18,213

35,228

Current maturities of capital lease obligation

16,074

8,712

Other current liabilities

88,482

152,668

Total current liabilities

2,723,499

2,656,324

Accrued warranty costs

73,786

65,193

Convertible notes

128,033

150,000

Long-term borrowings

828,539

606,577

Derivative liabilities - non-current

27,182

17,358

Liability for uncertain tax positions

14,688

14,468

Deferred tax liabilities - non-current

37,003

19,030

Loss contingency accruals

23,920

23,500

Long-term capital lease obligation

78,342

17,728

Other non-current liabilities

76,336

14,566

Total LIABILITIES

4,011,328

3,584,744

Equity:

Common shares

700,669

677,103

Additional paid-in capital

(13,103)

(17,139)

Retained earnings

281,823

218,860

Accumulated other comprehensive loss

(52,932)

(59,856)

Total Canadian Solar Inc. shareholders' equity

916,457

818,968

Non-controlling interests in subsidiaries

13,865

13,542

TOTAL EQUITY

930,322

832,510

TOTAL LIABILITIES AND EQUITY

$                                                       4,941,650

$                                                4,417,254

 

SOURCE Canadian Solar Inc.

 

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