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Solar PV Corporate News Release
Panasonic Solar Promotes First Group of Authorized Installers to Premium Level
Jul 26, 2017
Benefiting from the Leading Edge Technology, TZS Announced Mono-Crystalline Wafer Price Modification
Jul 18, 2017
Canadian Solar Reports First Quarter 2017 Results
Jun 06, 2017
JinkoSolar Announces First Quarter 2017 Financial Results
Jun 05, 2017
Hanwha Q CELLS Reports
May 25, 2017
JA Solar Announces First Quarter 2017 Results
May 24, 2017
Yingli Green Energy Reports Fourth Quarter and Full Year 2016 Results
Apr 13, 2017
Hanwha Q CELLS Reports Fourth Quarter and Full Year 2016 Results
Mar 23, 2017
JA Solar Announces Fourth Quarter and Fiscal Year 2016 Results
Mar 16, 2017
Higher yield of solar wafers and enhanced solar cell efficiency with new HeraGlaze coating by Heraeus
Mar 01, 2017
Heraeus enables significant higher efficiency gains with three new metallization pastes
Mar 01, 2017
First Solar, Inc. Announces Fourth Quarter & Full Year 2016 Financial Results
Feb 22, 2017
SunPower Reports Fourth Quarter 2016 Results
Feb 16, 2017
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
First Solar, Inc

First Solar, Inc. Announces Third Quarter 2016 Financial Results

·    Net sales of $688 million

·    GAAP earnings per share of $1.49

·    Non-GAAP earnings per share of $1.22

·    Cash and marketable securities of $2.1 billion, net cash of $1.3 billion

·    Maintain 2016 EPS guidance; Revenue guidance lowered for revised project sale timing

TEMPE, Ariz.-- First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the third quarter of 2016. Net sales were $688 million, a decrease of $246 million from the prior quarter, due to the completion of multiple systems projects during the quarter, partially offset by higher module-only sales.

The Company reported third quarter earnings per share of $1.49, compared to $0.13 in the prior quarter. The third quarter was impacted by pre-tax charges of $4 million, related to previously announced restructuring actions. Restructuring related charges in the second quarter were $86 million. Third quarter non-GAAP earnings per share, adjusted for restructuring charges and a foreign tax benefit, were $1.22, compared to $0.87 in the second quarter. Net income was higher versus the prior quarter as a result of lower restructuring charges and the aforementioned foreign tax benefit.

Cash and marketable securities at the end of the third quarter increased to $2.1 billion, primarily due to borrowing under the Company's revolving credit facility. The short-term borrowing is a result of the ongoing construction of large scale projects which have not yet been sold. Cash flows used in operations were $76 million in the third quarter.

"In the third quarter our operational and financial results were solid," said Mark Widmar, CEO of First Solar. "Our entire fleet module efficiency for the past quarter was 16.5% and our lead line efficiency exited the quarter at 16.9%, demonstrating continued execution on our technology roadmap. We are pleased with our current year financial performance; however, current market conditions are extremely challenging and require us to carefully assess our short and long-term strategic response."

The Company updated its 2016 guidance based on third quarter results and the revised sale timing for the California Flats and Moapa projects. These projects are now expected to be sold in 2017. The updated guidance is as follows:

2016 Guidance

 

 

Prior GAAP

 

 

Current GAAP

 

 

Prior Non-GAAP

 

 

Current Non-GAAP

Net Sales

 

 

$3.8B to $4.0B

 

 

$2.8B to $2.9B

 

 

 

 

 

 

Gross Margin %

 

 

18.5% to 19.0%

 

 

25.5% to 26.0%

 

 

 

 

 

 

Operating Expenses

 

 

$485M to $520M

 

 

$480M to $500M

 

 

$380M to $400M

 

 

$375M to $385M

Operating Income

 

 

$205M to $250M

 

 

$235M to $255M

 

 

$310M to $370M

 

 

$340M to $370M

Effective Tax Rate

 

 

4% to 6%

 

 

(5%) to (3%)

 

 

16% to 18%

 

 

8% to 10%

Earnings per Share1

 

 

$3.65 to $3.90

 

 

$3.75 to $3.90

 

 

$4.20 to $4.50

 

 

$4.30 to $4.50

Net Cash Balance2

 

 

$1.9B to $2.2B

 

 

$1.4B to $1.5B

 

 

 

 

 

 

Operating Cash Flow3

 

 

$500M to $650M

 

 

($100M) to $0M

 

 

 

 

 

 

Capital Expenditures

 

 

$275M to $325M

 

 

$225M to $275M

 

 

 

 

 

 

Shipments

 

 

2.9GW to 3.0GW

 

 

2.8GW to 2.9GW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Includes a gain of approximately $110 million, net of tax, from the expected sale of an equity method investment and our share of 8point3 earnings and a gain in other income of approximately $20 million, net of tax, from the sale of restricted investments in Q1 2016

2.

Defined as cash and marketable securities less expected debt at the end of 2016

3.

Excludes cash from the sale of an equity method investment treated as an investing cash flow

 

 

For a reconciliation of the non-GAAP measures presented above to measures presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"), see the tables below.

First Solar has scheduled a conference call for today, November 2, 2016, 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 November 9, 2016 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 4525767. 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 certain module manufacturing changes; 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; our ability to expand manufacturing capacity worldwide; 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," "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. 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)

 

 

 

 

September 30,
2016

December 31,
2015

ASSETS

Current assets:

Cash and cash equivalents

$

1,414,219

$

1,126,826

Marketable securities

675,985

703,454

Accounts receivable trade, net

323,049

500,629

Accounts receivable, unbilled and retainage

245,782

59,171

Inventories

369,086

380,424

Balance of systems parts

77,942

136,889

Deferred project costs

94,549

187,940

Notes receivable, affiliate

1,276

Prepaid expenses and other current assets

264,806

 

248,977

Total current assets

3,465,418

3,345,586

Property, plant and equipment, net

1,266,337

1,284,136

PV solar power systems, net

487,246

93,741

Project assets and deferred project costs

1,312,081

1,111,137

Deferred tax assets, net

347,081

357,693

Restricted cash and investments

409,640

333,878

Investments in unconsolidated affiliates and joint ventures

448,963

399,805

Goodwill

78,888

84,985

Other intangibles, net

72,386

110,002

Inventories

102,162

107,759

Notes receivable, affiliates

20,313

17,887

Other assets

77,145

 

69,722

Total assets

$

8,087,660

 

$

7,316,331

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

201,835

$

337,668

Income taxes payable

10,486

1,330

Accrued expenses

328,969

409,452

Current portion of long-term debt

626,026

38,090

Billings in excess of costs and estimated earnings

80,830

87,942

Payments and billings for deferred project costs

103,337

28,580

Other current liabilities

55,841

 

57,738

Total current liabilities

1,407,324

960,800

Accrued solar module collection and recycling liability

169,679

163,407

Long-term debt

161,131

251,325

Other liabilities

403,767

 

392,312

Total liabilities

2,141,901

 

1,767,844

Commitments and contingencies

Stockholders' equity:

Common stock, $0.001 par value per share; 500,000,000 shares authorized; 103,912,069 and
101,766,797 shares issued and outstanding at September 30, 2016 and December 31, 2015,
respectively

104

102

Additional paid-in capital

2,767,562

2,742,795

Accumulated earnings

3,128,229

2,790,110

Accumulated other comprehensive income

49,864

 

15,480

Total stockholders' equity

5,945,759

 

5,548,487

Total liabilities and stockholders' equity

$

8,087,660

 

$

7,316,331

 

 

 

FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

 

 

 

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

 

2015

2016

 

2015

Net sales

$

688,029

$

1,271,245

$

2,470,894

$

2,636,671

Cost of sales

501,749

 

786,880

 

1,830,504

 

1,948,842

 

Gross profit

186,280

484,365

640,390

687,829

Operating expenses:

Research and development

32,173

29,630

95,291

93,865

Selling, general and administrative

60,345

53,716

191,624

192,305

Production start-up

752

3,198

807

16,818

Restructuring and asset impairments

4,314

 

 

89,846

 

 

Total operating expenses

97,584

 

86,544

 

377,568

 

302,988

 

Operating income

88,696

397,821

262,822

384,841

Foreign currency loss, net

(2,296

)

(1,803

)

(8,259

)

(4,981

)

Interest income

5,894

5,322

18,829

16,444

Interest expense, net

(5,563

)

(1,775

)

(17,356

)

(2,795

)

Other income (expense), net

6,419

 

(1,678

)

48,725

 

(3,729

)

Income before taxes and equity in earnings of unconsolidated affiliates

93,150

397,887

304,761

389,780

Income tax benefit (expense)

50,522

(48,454

)

7,711

(9,134

)

Equity in earnings of unconsolidated affiliates, net of tax

10,474

 

(115

)

25,647

 

1,640

 

Net income

$

154,146

 

$

349,318

 

$

338,119

 

$

382,286

 

Net income per share:

Basic

$

1.49

 

$

3.46

 

$

3.30

 

$

3.80

 

Diluted

$

1.49

 

$

3.41

 

$

3.28

 

$

3.75

 

Weighted-average number of shares used in per share calculations:

Basic

103,339

 

100,906

 

102,496

 

100,713

 

Diluted

103,733

 

102,299

 

103,062

 

101,845

 

 

 

Non-GAAP Financial Measures

In the press release above, we provided non-GAAP earnings per share for the three months ended September 30, 2016. We have included this non-GAAP financial measure to adjust for (i) restructuring and asset impairment charges primarily related to severance benefits to terminated employees and certain other actions unrelated to the end of our crystalline silicon module production, (ii) write-downs of certain crystalline silicon module inventories, (iii) the reversal of a liability associated with an uncertain tax position related to the income of a foreign subsidiary and (iv) the tax benefits associated with these items. We believe non-GAAP earnings per share, when taken together with corresponding GAAP financial measures, to be relevant and useful information to our investors because it provides them with additional information in assessing our financial operating results. Our management uses this non-GAAP financial measure in evaluating our operating performance. However, this measure has limitations, including that it excludes the effect of certain changes to our assets and liabilities and certain amounts that we may ultimately have to pay in cash. Accordingly, this non-GAAP financial measure should be considered in addition to, and not as a substitute for, or superior to net earnings per share prepared in accordance with GAAP. The following is the reconciliation of earnings per share prepared in accordance with GAAP to non-GAAP earnings per share (in millions, except per share amounts):

 

 

Three Months Ended
September 30, 2016

Net income

$

154.1

 

Restructuring and asset impairments

4.3

Write-downs of crystalline silicon module inventories

4.9

Foreign tax benefit

(35.4

)

Tax effect*

(1.3

)

Non-GAAP net income

$

126.6

 

 

Weighted-average number of shares used for diluted earnings per share

103.7

 

GAAP earnings per share

$

1.49

Non-GAAP earnings per share

$

1.22

 

 

*

 

Restructuring treated as a non-discrete item for tax purposes and will be reflected in the effective tax rate over the duration of 2016.

 

 

In the press release above, we provided non-GAAP guidance for our operating expenses, operating income, effective tax rate and earnings per share for the year ending December 31, 2016 as of the date of this press release ("current non-GAAP 2016 guidance") and as of the date of the press release announcing our earnings for the quarter ended June 30, 2016 ("prior non-GAAP 2016 guidance"). We have included these forward-looking non-GAAP financial measures to adjust our GAAP projections of such financial measures for (i) restructuring and asset impairment charges primarily associated with the end of our crystalline silicon operations, (ii) additional restructuring activities expected during the remainder of the year and (iii) the reversal of a liability associated with an uncertain tax position related to the income of a foreign subsidiary. Other GAAP charges, including those related to asset impairments, restructuring programs or litigation, that would be excluded from non-GAAP earnings per share are possible for the year ending December 31, 2016, but such amounts are dependent on numerous factors that we currently cannot ascertain with sufficient certainty or are presently unknown. These GAAP charges are also dependent upon future events and valuations that have not yet occurred or been performed. We believe these forward-looking non-GAAP financial measures, when taken together with our corresponding financial guidance based on GAAP, to be relevant and useful information to our investors because they provide them with additional information in assessing our financial operating results. Our management also uses such non-GAAP guidance in evaluating our operating performance. However, such measures have limitations, including that they exclude the effect of certain changes to our assets and liabilities, certain amounts that we may ultimately have to pay in cash and certain tax benefits. Accordingly, these forward-looking non-GAAP financial measures that exclude the aforementioned items should be considered in addition to, and not as substitutes for or superior to, financial guidance based on GAAP. The following are the reconciliations of our current non-GAAP 2016 guidance and our prior non-GAAP 2016 guidance to the corresponding GAAP 2016 guidance as of the applicable date (in millions, except per share amounts):

Reconciliation of Current Non-GAAP 2016 Guidance to Current GAAP 2016 Guidance

 

 

 

 

 

 

 

 

GAAP Guidance

Restructuring
Charges1

Foreign Tax
Benefit2

Non-GAAP
Guidance

Operating Expenses

$480 to $500

($105 to $115)

-

$375 to $385

Operating Income

$235 to $255

$105 to $115

-

$340 to $370

Effective Tax Rate3

(5%) to (3%)

$15 to $20

$35

8% to 10%

Earnings per share

$3.75 to $3.90

$0.85 to $0.90

($0.30)

$4.30 to $4.50

 

 

1.

 

$90 to $95 million of restructuring, asset impairment and related charges primarily associated with the end of our crystalline silicon module production and $15 to $20 million associated with other actions

2.

Tax benefit in Q3 2016 from the reversal of a liability associated with an uncertain tax position related to the income of a foreign subsidiary

3.

Effective tax rate reconciliation provides the estimated tax benefit associated with restructuring and asset impairment charges and the reversal of an uncertain tax position liability

 

 

 

Reconciliation of Prior Non-GAAP 2016 Guidance to Prior GAAP 2016 Guidance

 

 

 

 

 

 

 

 

GAAP Guidance

Restructuring
Charges1

Foreign Tax
Benefit2

Non-GAAP
Guidance

Operating Expenses

$485 to $520

($105 to $120)

-

$380 to $400

Operating Income

$205 to $250

$105 to $120

-

$310 to $370

Effective Tax Rate3

4% to 6%

$15 to $25

$35

16% to 18%

Earnings per share

$3.65 to $3.90

$0.85 to $0.90

($0.30)

$4.20 to $4.50

 

 

1.

 

$90 to $100 million of restructuring, asset impairment and related charges primarily associated with the end of our crystalline silicon module production and $15 to $20 million associated with other actions

2.

Expected tax benefit in Q3 2016 from the reversal of a liability associated with an uncertain tax position related to the income of a foreign subsidiary

3.

Effective tax rate reconciliation provides the estimated tax benefit associated with restructuring and asset impairment charges and the reversal of an uncertain tax position liability

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161102006679r1&sid=acqr7&distro=nx&lang=enFirst Solar Investors
Steve Haymore
+1 602-414-9315
stephen.haymore@firstsolar.com
or
First Solar Media
Steve Krum
+1 602-427-3359
steve.krum@firstsolar.com

Source: First Solar, Inc.

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