Home
Why Solar
Retailer Price
Contract Price
Inverter Price
Weekly Snapshots
Price Download
Monthly Insights
Weekly Forecast
Price Forecast
Premier Insights
Premier Data
Advertising
Solar PV Corporate News Release
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
JinkoSolar Announces Third Quarter 2015 Financial Results

Canadian Solar Reports First Quarter 2017 Results

GUELPH, Ontario, June 6, 2017 /PRNewswire/ -- 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 first quarter of 2017 ended March 31, 2017.

First Quarter 2017 Highlights

  • Total solar module shipments were 1,480 MW, compared to 1,612 MW in the fourth quarter of 2016, and first quarter 2017 guidance was in the range of 1,150 MW to 1,200 MW.
  • Net revenue was $677.0 million, compared to $668.4 million in the fourth quarter of 2016, and first quarter 2017 guidance was in the range of $570 million to $590 million.
  • Net revenue from the total solutions business as a percentage of total net revenue was 18.8% compared to 6.6% in the fourth quarter of 2016.
  • Gross margin was 13.5%, compared to 13.9% (excluding the AD/CVD true-up provision of $44.1 million) or 7.3% (including the AD/CVD true-up provision of $44.1 million) in the fourth quarter of 2016, and first quarter 2017 guidance was in the range of 13.0% to 15.0%.
  • Net loss attributable to Canadian Solar was $13.3 million, or $0.23 per diluted share, compared to net loss of $13.3 million, or $0.23 per diluted share in the fourth quarter of 2016.
  • Non-GAAP adjusted net loss attributable to Canadian Solar, which is adjusted to exclude a one-time provision of $8.6 million as explained in later paragraph, net of income tax effect, was $6.0 million, or $0.10 per diluted share, in the first quarter of 2017, compared to non-GAAP adjusted net income attributable to Canadian Solar, which is adjusted to exclude the impact of the $44.1 million AD/CVD true-up provision, net of income tax effect, was $14.2 million, or $0.24 per diluted share in the fourth quarter of 2016. (For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures.")
  • Cash, cash equivalents and restricted cash balances as of March 31, 2017 was $961.4 million, compared to $1.01 billion as of December 31, 2016.
  • Net cash used in operating activities was approximately $55.8 million, compared to net cash used in operating activities of $109.3 million in the fourth quarter of 2016.
  • In March, the Company completed the sale of two solar power plants in China, for over RMB687.1 million (US$99.8 million). In February, the Company also completed the sale of three solar power plants in Canada, totaling 59.8 MWac, for over C$257 million ($195.32 million).
  • The Company's portfolio of solar power plants in commercial operation was 1,156.5 MWp as of March 31, 2017, with an estimated total resale value of approximately $1.6 billion.

First Quarter 2017 Results

Net revenue in the first quarter of 2017 was $677.0 million, up 1.3% from $668.4 million in the fourth quarter of 2016 and down 6.2% from $721.4 million in the first quarter of 2016. Solar module shipments recognized in revenue totaled 1,489 MW, compared to 1,581 MW recognized in revenue in the fourth quarter of 2016 and 1,172 MW recognized in revenue in the first quarter of 2016. Solar module shipments recognized in revenue in the first quarter of 2017 included 176.3 MW used in the Company's total solutions business, compared to 85.6 MW in the fourth quarter of 2016 and 24.8 MW in the first quarter of 2016.

The following table is a summary of net revenue by geographic region based on the location of customers' headquarters (in millions of US$, except percentages).

Q1 2017

Q4 2016

Q1 2016

US$M

%

US$M

%

US$M

%

The Americas

$200.1

29.6

$138.1

20.7

$311.3

43.1

Asia

394.3

58.2

419.3

62.7

320.2

44.4

Europe and Others

82.6

12.2

111.0

16.6

89.9

12.5

Total

677.0

100

668.4

100

721.4

100

Gross profit in the first quarter of 2017 was $91.4 million, compared $49.0 million in the fourth quarter of 2016 and $112.5 million in the first quarter of 2016. Gross margin in the first quarter of 2017 was 13.5%, compared to 13.9% in the fourth quarter of 2016, (excluding the AD/CVD true-up provision of $44.1 million) or compared to 7.3% (including the AD/CVD true-up provision of $44.1 million) in the fourth quarter of 2016, and compared to 15.6% in the first quarter of 2016.

Total operating expenses were $93.7 million in the first quarter of 2017, up 54.4% from $60.7 million in the fourth quarter of 2016 and up 26.5% from $74.1 million in the first quarter of 2016.

Selling expenses were $33.9 million in the first quarter of 2017, down 20.6% from $42.7 million in the fourth quarter of 2016 and down 2.4% from $34.8 million in the first quarter of 2016. The sequential decrease was primarily due to lower shipping and handling costs, external sales commissions and other expenses, including travel and office expenses. The year-over-year decrease was primarily due to the decrease in external sales commissions and marketing expenses, which was partially offset by a slight increase in insurance expenses.

General and administrative expenses were $55.1 million in the first quarter of 2017, down12.4% from $62.8 million in the fourth quarter of 2016 and up 55.0% from $35.5 million in the first quarter of 2016. The sequential decrease was primarily attributable to a $14.0 million decrease in fixed assets impairment, and a decrease in professional service fees and travel expenses, which was partially offset by an increase in labor costs and a one-time $8.6 million provision ("LDK provision") for a judgment made against the Company by the Xinyu Intermediate People's Court in favor of the bankruptcy liquidation committee of LDK Solar Co., Ltd. The Company disputes the merits of the judgment and continues to evaluate its legal options. The year-over-year increase was primarily due to an increase in labor costs, an increase in fixed assets impairment expenses, and the LDK provision.

Research and development expenses were $5.6 million in the first quarter of 2017, compared to $3.2 million in the fourth quarter of 2016 and $4.5 million in the first quarter of 2016. The sequential and year-over-year increase reflected the Company's continued commitment to investing in and commercializing solar energy technologies that differentiate the Company and strengthen its competitive position.

Loss from operations was $2.3 million in the first quarter of 2017, compared to loss from operations of $11.8 million in the fourth quarter of 2016, and income from operations of $38.4 million in the first quarter of 2016. Excluding the $8.6 million LDK provision and the $44.1 million AD/CVD true-up provision, income from operations would have been $6.3 million and $32.3 million in the first quarter of 2017 and in the fourth quarter of 2016, respectively. Operating margin was negative 0.3% in the first quarter of 2017, compared to negative 1.8% in the fourth quarter of 2016 and 5.3% in the first quarter of 2016. Excluding the $8.6 million LDK provision and the $44.1 million AD/CVD true-up provision, operating margin would have been 0.9% and 4.8% in the first quarter of 2017 and in the fourth quarter of 2016, respectively.

Non-cash depreciation and amortization charges were approximately $17.1 million in the first quarter of 2017, compared to $19.3 million in the fourth quarter of 2016, and $25.7 million in the first quarter of 2016. Non-cash equity compensation expense was $0.9 million in the first quarter of 2017, compared to $2.2 million in the fourth quarter of 2016 and $2.5 million in the first quarter of 2016.

Interest expense was $24.1 million in the first quarter of 2017, compared to $22.9 million in the fourth quarter of 2016 and $16.1 million in the first quarter of 2016.

Interest income was $2.5 million in the first quarter of 2017, compared to $2.4 million in the fourth quarter of 2016 and $3.4 million in the first quarter of 2016. 

The Company recorded a loss on change in fair value of derivatives, predominantly foreign exchange hedging positions of forwards, of $7.8 million in the first quarter of 2017, compared to a gain of $24.2 million in the fourth quarter of 2016 and a gain of $2.7 million in the first quarter of 2016. Foreign exchange gain in the first quarter of 2017 was $14.2 million compared to a foreign exchange loss of $12.5 million in the fourth quarter of 2016 and a foreign exchange gain of $8.5 million in the first quarter of 2016.

Income tax benefit was $3.1 million in the first quarter of 2017, compared to $10.6 million in the fourth quarter of 2016 and an income tax expense of $12.3 million in the first quarter of 2016.

Net loss attributable to Canadian Solar was $13.3 million or $0.23 per diluted share in the first quarter of 2017, compared to net loss of $13.3 million, or $0.23 per diluted share, in the fourth quarter of 2016 and net income of $22.6 million, or $0.39 per diluted share, in the first quarter of 2016. Non-GAAP adjusted net loss attributable to Canadian Solar, which is adjusted to exclude the LDK provision of $8.6 million, net of income tax effect, was $6.0 million, or $0.10 per diluted share, in the first quarter of 2017, compared to non-GAAP adjusted net income attributable to Canadian Solar, which is adjusted to exclude the impact of the $44.1 million AD/CVD true-up provision, net of income tax effect, was $14.2 million, or $0.24 per diluted share in the fourth quarter of 2016. For a reconciliation of measures presented in accordance with generally accepted accounting principles in the United States ("GAAP") to the non-GAAP measures, a table is available at the end of this press release.

Financial Condition

The Company had $961.4 million of cash, cash equivalents and restricted cash as of March 31, 2017, compared to $1.01 billion as of December 31, 2016.

Accounts receivable, net of allowance for doubtful accounts as of March 31, 2017 were $368.6 million, compared to $400.3 million as of December 31, 2016. Accounts receivable turnover was 59 days in the first quarter of 2017, compared to 65 days in the fourth quarter of 2016.

Inventories as of March 31, 2017 were $274.5 million, compared to $295.4 million as of December 31, 2016. Inventory turnover was 48 days in the first quarter of 2017, which remained unchanged from the fourth quarter of 2016.

Accounts and notes payable as of March 31, 2017 were $847.2 million, compared to $736.8 million as of December 31, 2016.

Excluding the borrowings included in 'Liabilities held-for-sale', short-term borrowings as of March 31, 2017 were $1.71 billion, compared to $1.60 billion as of December 31, 2016. Long-term borrowings as of March 31, 2017 were $462.1 million, compared to $493.5 million as of December 31, 2016.

The Company had approximately $972.0 million in non-recourse bank borrowings as of March 31, 2017. Senior convertible notes totaled $125.8 million as of March 31, 2017, compared to $125.6 million as of December 31, 2016. Total borrowings directly related to utility-scale solar power projects, which included $898.8 million of non-recourse borrowings, were $1.20 billion as of March 31, 2017, compared to $1.19 billion as of December 31, 2016.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked, "Solar module shipments and revenue in the first quarter exceeded expectations led by demand for our high performance solar modules out of China, Brazil, and the U.S, as well as unwavering execution on our total solutions business. We have successfully restored six cell production lines at our tornado damaged Funing cell factory, and have restored another six lines subsequently in Q2. We have also successfully ramped up our new solar cell plant in South East Asia. The equipment used in these cell factories features the latest production technologies, which gives us further cost and efficiency advantages and the desired capacity customers are seeking. We have completed five additional project sales in China and Canada in the first quarter. We are well underway in the process to monetize our other operating solar power plants in the U.S., Japan and China. We have just completed the second round of binding offers for the sales of our high quality solar power plant assets in the U.S. and will soon select the final winner. In Japan, we now have 65 MWp of solar power plants in commercial operation and made progress to launch the JREIT listing around the end of the third quarter, or in the fourth quarter this year. It is our expectation that as we continue to successfully execute our operating plan our share price will achieve a higher valuation in the market, one that more appropriately reflects the value of our operating assets, global project pipeline and prospects for continued success."

Dr. Huifeng Chang, Senior Vice President and Chief Financial Officer of Canadian Solar, added: "The higher manufacturing efficiency of our facilities and tight inventory management allowed us to partially offset the impact of solar module ASP declines and hold gross margin at 13.5%. We are also now positioned to benefit from having production facilities online in trade-friendly South East Asia, enabling us to meet demand requirements of the U.S. and other markets. Also, I am personally pleased with the progress our team has made at monetizing our operating asset portfolio in the U.S. These are major undertakings with equally significant potential upside for the Company as we focus on increasing returns on our project investments and maximizing operating cash flow. Finally, we believe we are in the final stage of negotiations with our insurance provider and expect to receive further compensation in the second quarter this year for the tornado damage and losses of our Funing cell factory."

Utility-Scale Solar Project Pipeline

The Company divides its utility-scale solar project pipeline into two parts: an early-to-mid-stage pipeline and a late-stage pipeline. The late-stage pipeline primarily includes projects that have energy off-take agreements and are expected to be built within the next two to four years. The Company cautions that some late-stage projects may not reach completion due to such risks as failure to secure permits and grid connection, among others.

Late-Stage Utility-Scale Solar Project Pipeline

As of March 31, 2017, the Company's late-stage solar project pipeline, including those in construction, totaled approximately 2.16 GWp, which included 626 MWp in Japan, 401 MWp in the U.S., 400 MWp in China, 399 MWp in Brazil, 144 MWp in India, 118 MWp in Australia, 68 MWp in Mexico and 6 MWp in Africa.

In the United States, as previously announced, the late-stage 92 MWp IS 42 project is in construction and is expected to reach commercial operation by the end of 2017. Two other projects (Tranquillity 8 and Gaskell West 1) are currently under development and are expected to reach commercial operation before the end of 2018.

The table below sets forth the Company's late-stage, utility-scale solar project pipeline in the U.S. as of March 31, 2017:

U.S. Project

MWp

Location

Status

Expected COD

Tranquillity 8

281

Fresno county, CA

Development

2018

Gaskell West 1

28

Kern county, CA

Development

2018

IS 42

92

Fayetteville, NC

Construction

2017

Total

401

In Japan, as of March 31, 2017, the Company's pipeline of late-stage utility-scale solar power projects totaled approximately 626 MWp, including 209.3 MWp in construction and 2 MWp at the ready-to-build stage. The table below sets forth the expected commercial operation schedule of the Company's late­-stage utility-scale solar power projects in Japan as of March 31, 2017:

Expected Japan COD Schedule (MWp)

2017

2018

2019

2020

2021 and Thereafter

Total

102.7

79.9

97.7

126.4

219.3

626

As of March 31, 2017, of the late-stage utility-scale solar power projects pipeline in Japan, Canadian Solar has executed interconnection agreements for 421.6 MWp of projects that are under construction or under development, with an additional 204.4 MWp of projects that are in a bidding process.

The table below sets forth the Company's late-stage, utility-scale solar project pipeline in Brazil as of March 31, 2017:

Brazil Project

MWp

Location

Status

Expected COD

Pirapora I

192

Brazil

Construction

2017

Pirapora II

115

Brazil

Development

2018

Pirapora III (formerly Vazante)

92

Brazil

Construction

2017

Total

399

The Company completed the sale of 80% interest in Pirapora I in the fourth quarter of 2016. And the Company supplies the modules for all Pirapora projects.  The Company also recently completed the sales of an 80% interest of both Pirapora II and III.

The table below sets forth the Company's late-stage utility-scale power project pipeline in India as of March 31, 2017:

India Project

MWp

Location

Status

Expected COD

Kamareddy

18

India

Construction

2017

Ramnapet

18

India

Construction

2017

SECI Maharashtra

108

India

Development

2017

Total

144

As previously announced, the Company secured power purchase agreements for an aggregate 80 MWac of solar power projects with the Solar Energy Corporation of India (SECI) in March 2017. These projects are expected to generate clean solar electricity for SECI over the next 25 years.

Solar Power Plants in Operation

In addition to its late stage, utility­scale solar project pipeline, the Company has a portfolio of solar power plants in operation totaling 1,156.5 MWp as of March 31, 2017 recorded on the balance sheet as Project assets  ($1,167.9 million), Assets held for sale ($156.0 million) and Solar power systems, net ($108.4 million). Revenue from the sale of electricity generated by these plants in the first quarter of 2017 totaled $5.2 million, compared to $11.8 million in the fourth quarter of 2016.

The sale of projects recorded as 'Project assets' (build­to­sell) on the balance sheet will be recorded as revenue once revenue recognition criteria are met, and the gain from the sale of projects recorded as 'Assets held-for-sale' and 'Solar power systems, net' (build­to­own) on the balance sheet will be recorded within 'Other operating income (expenses)' in the income statement.

The table below sets forth the Company's total portfolio of solar power plants in operation as of March 31, 2017:

Plants in Operation (MWp)

U.S.

Japan

U.K.

China

Other

Total

808

65

150

128.5

5

1,156.5

Manufacturing Capacity                                                                                                

The Company plans to expand its ingot, wafer, cell and module capacities to 1.1 GW, 4.0 GW, 4.49 GW and 7.04 GW, respectively, by December 31, 2017. The table below sets forth the Company's capacity expansion plan from December 31, 2016 to December 31, 2017:

Manufacturing Capacity Roadmap (MW)

December 31,2016

June 30, 2017

December 31, ,2017

Ingot

400

-

1,100

Wafer

1,000

2,000

4,000

Cell

2,440

4,490

4,490

Module

6,170

6,970

7,040

The Company successfully started, and is ramping up its new multi-crystalline silicon ingot casting workshop in Baotou, China, with 50 new casting furnaces and 700 MW annual capacity, operated in G6 mode producing 36 bricks per ingot. The Company is also in the process of relocating its older casting ingot furnaces, previously in Luoyang, China, to Baotou in order to benefit from the lower electricity cost. The Company expects to complete both the relocation and ramp up by the end of September and reach 1,100 MW of annual internal ingot casting capacity. We plan to migrate the 50 new casting furnaces to G7 mode, producing 49 bricks per ingot, by approximately the middle of 2018, therefore raising our ingot capacity to 1,350 GW and further reducing the cost. The new ingot factory will also help us to reduce the purchase of external ingots and thus reduce our all-in module manufacturing costs.

The Company's wafer manufacturing capacity recently reached 2.0 GW and will reach 4.0 GW by December 31, 2017, all of which will use diamond wire-saw technology. Diamond wire-saw technology works compatibly with the Company's proprietary and highly efficient Onyx black silicon multi-crystalline solar cell technology, significantly reducing silicon usage and therefore manufacturing cost.

The Company's solar cell manufacturing capacity, as of March 31, 2017, was 3.77 GW, and is expected to reach 4.49 GW by June 30, 2017. The Company restored a total of six cell production lines, with original nameplate capacity of 500 MW, at its Funing cell factory by March 31, 2017. The Company has since then restored the other 500 MW of original nameplate cell capacity, and therefore completed the full restoration of this factory, which was damaged by a severe tornado on June 23rd, 2016. With continued improvement, the Company expects to reach an actual capacity of 1,440 MW at its Funing factory. The Company's new 850 MW cell plant in South East Asia began to ramp-up production in March 2017. As a result, the Company's cell manufacturing capacity is expected to reach 4.49 GW by June 30, 2017.

The Company expects that its total worldwide module manufacturing capacity will exceed 7.0 GW by December 31, 2017.

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 uncertainties relating to customer final demand and solar project construction schedules. Management's views and estimates are subject to change without notice.

For the second quarter of 2017, the Company expects total solar module shipments to be in the range of approximately 1,530 MW to 1,580 MW, including approximately 120 MW of shipments to the Company's utility-scale solar power projects that may not be recognized as revenue in the second quarter of 2017. The Company is facing an overwhelming demand for its solar modules in China market at this moment. The demand is also healthy in major markets such as Europe, the U.S., and Japan. The Company's module shipment for quarter is limited by the internal solar cell production capacity and the supply shortage of third-party solar cells. Total revenue for the second quarter of 2017 is expected to be in the range of $615 million to $635 million. Gross margin for the second quarter is expected to be between 13% and 15%.

Considering shipment volume expected in the first half of 2017 and the constraint of internal solar cell and module capacities in the second half of the year, the Company's total module shipments in 2017 are now expected to be in the range of 6.0 to 6.5 GW, as compared to 6.5 GW to 7.0 GW previously. The module shipment recognized in revenue and the total annual revenue may also be lower than its previous guidance depending on market conditions, including but not limited to ASP trends. The Company continues to expect it will connect approximately 1 GW to 1.2 GW of new solar projects globally in 2017, based on the commercial operation date (COD). These projects are located in the U.S., Japan, China, UK, India, Brazil and Africa. The revenue from the Company's energy business will mainly come from the monetization of the Company's high quality solar power plant assets in the U.S., Japan, China, UK and Brazil. The Company continues to expect its cost of production will decrease throughout the year as new internal wafer, cell and module capacity comes online, and the percentage of external purchases and OEM is reduced. Management expects that the increase in vertical integration along the manufacturing cycle will help the Company maintain or improve its gross margin.

Recent Developments

On May 30, 2017, Canadian Solar announced that it supplied 268 MW of double-glass Dymond modules for the first phase of the 800 MW Mohammed bin Rashid Al Maktoum Solar Park (DEWA Project) in Dubai.

On May 11, 2017, Canadian Solar announced that it acquired a 10% equity interest in eNow, a U.S. company specializing in solar-based energy management systems for the commercial transportation industry.  Canadian Solar's total investment was less than $1 million.

On May 3, 2017, Canadian Solar announced energy industry veteran Ty Daul joined the Company as Energy Group Vice President, Americas. Mr. Daul will lead the Company's energy business units throughout Canada, Latin America and the United States, which includes the Company's wholly-owned subsidiary Recurrent Energy.

On May 2, 2017, Canadian Solar announced that it secured AUD65 million (US$50 million) of non-recourse project financing with a 5-year term for two of its solar farm power projects, totaling 47 MWp in Australia with the Bank of Tokyo-Mitsubishi UFJ, Ltd. and Clean Energy Finance Corporation.

On April 26, 2017, Canadian Solar announced that the Company supplied 10 MW of PV Modules to Soroti Photovoltaic Plant in Uganda. The project is the largest of its kind in East Africa.

On April 25, 2017, Canadian Solar announced that it secured financing for its 92 MWp IS-42 solar power project near Fayetteville, North Carolina.  The financing is in the form of a debt facility with Prudential Capital Group and a tax equity investment commitment from U.S. Bancorp Community Development Corporation. 

On April 12, 2017, Canadian Solar announced that its wholly-owned subsidiary, CSI New Energy Holding Co., Ltd.,  completed the sale of two solar power plants in China, totaling approximately 69.5 MWp to Shenzhen Energy Nanjing Holding Co., Ltd., a subsidiary of Shenzhen Energy Group Co., Ltd., for approximately RMB687.1 million (US$99.8 million). 

On April 3, 2017, Canadian Solar announced the completion of its second green project bond placement with Goldman Sachs Japan Co., Ltd.  The JPY5.4 billion (US$47.0 million) innovative dual-tenor green project bond was issued to finance Canadian Solar's 19.05 MWp Gunma Aramaki Solar Power Plant in Gunma Prefecture, Japan.

On March 30, 2017, Canadian Solar announced that its wholly-owned subsidiary Canadian Solar Projects K.K. entered into a 3-year credit agreement for JPY4 billion (US$35 million) with Sumitomo Mitsui Finance and Leasing Company, Limited, a member of Sumitomo Mitsui Financial Group.

On March 14, 2017, Canadian Solar announced that it secured power purchase agreements for an aggregate 80 MWac of solar power projects with the Solar Energy Corporation of India, a public sector undertaking of the Government of India. These projects are scheduled to commence operations by late 2017 and are expected to generate clean solar electricity for SECI over the next 25 years.

On March 6, 2017, Canadian Solar announced that it received US$20 million unsecured funding from the China and Portuguese-speaking Countries Cooperation and Development Fund to support the development of eligible projects in Brazil, including the 191 MWp Pirapora I Project in the state of Minas Gerais.

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 16 years, Canadian Solar has successfully delivered over 21 GW of premium quality modules to over 100 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, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

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 27, 2017. 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

March 31

December 31

March 31

2017

2016

2016

Net revenues

$     677,042

$     668,428

$     721,422

Cost of revenues

585,636

619,472

608,951

Gross profit

91,406

48,956

112,471

Operating expenses:

Selling expenses

33,941

42,749

34,790

General and administrative expenses

55,070

62,838

35,520

Research and development expenses

5,624

3,204

4,505

Other operating income

(898)

(48,074)

(720)

Total operating expenses

93,737

60,717

74,095

Income (loss) from operations

(2,331)

(11,761)

38,376

Other income (expenses):

Interest expense

(24,111)

(22,897)

(16,130)

Interest income

2,522

2,381

3,386

Gain (loss) on change in fair value of derivatives

(7,752)

24,246

2,664

Foreign exchange gain (loss)

14,214

(12,487)

8,511

Investment income (loss)

-

(971)

88

Gain on repurchase of convertible notes

-

-

1,909

Others

-

-

-

Other expenses, net

(15,127)

(9,728)

428

Income (loss) before income taxes and equity in
earnings (loss) of unconsolidated investees

(17,458)

(21,489)

38,804

Income tax (expense) benefit

3109

10,598

(12,253)

Equity in earnings (loss) of unconsolidated
investees

 

606

 

(2,885)

 

(2,762)

Net income (loss)

(13,743)

(13,776)

23,789

Less: Net income (loss) attributable to
non-controlling interests

(408)

(448)

1,205

Net income (loss) attributable to Canadian Solar
Inc.

$       (13,335)

$       (13,328)

$         22,584

Earnings (loss) per share - basic

(0.23)

(0.23)

$   0.40

Shares used in computation - basic

57,832,572

57,806,597

56,901,349

Earnings (loss) per share - diluted

(0.23)

(0.23)

$   0.39

Shares used in computation - diluted

57,832,572

57,806,597

57,810,531

  

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(In Thousands of US Dollars)

 

Three Months Ended

 March 31

December 31

March 31

2017

2016

2016

Net Income (loss)

(13,743)

(13,776)

23,789

Other comprehensive income (net of tax of nil):

Foreign currency translation adjustment

8,929

(42,554)

22,675

Gain on changes in fair value of derivatives

1,681

14,520

1,632

Comprehensive income (loss)

(3,133)

(41,810)

48,096

Less: comprehensive income (loss) attributable to
non-controlling interests

(2,438)

1,088

2,046

Comprehensive income (loss) attributable to Canadian
Solar Inc.

(695)

(42,898)

46,050

 

 

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheet

(In Thousands of US Dollars)

March 31,

December 31,

2017

2016

ASSETS

Current assets:

Cash and cash equivalents

$          519,866

$          511,039

Restricted cash - current

430,456

487,516

Accounts receivable trade, net

368,621

400,251

Accounts receivable, unbilled

3,484

3,425

Amounts due from related parties

29,188

19,082

Inventories

274,527

295,371

Value added tax recoverable

76,081

55,680

Advances to suppliers - current

17,120

29,312

Derivative assets - current

4,262

12,270

Project assets - current

1,378,969

1,317,902

Assets held-for-sale

166,661

392,089

Prepaid expenses and other current assets

252,225

266,826

Total current assets

3,521,460

3,790,763

Restricted cash - non-current

11,044

9,145

Property, plant and equipment, net

538,306

462,345

Solar power systems, net

108,382

112,062

Deferred tax assets, net

231,214

229,980

Advances to suppliers –non-current

84,264

54,080

Prepaid land use right

53,700

48,651

Investments in affiliates

415,395

368,459

Intangible assets, net

8,458

8,422

Goodwill

7,617

7,617

Derivatives assets - non-current

16,450

15,446

Project assets - non-current

281,715

182,391

Other non-current assets

120,404

117,245

TOTAL ASSETS

$         5,398,409

$         5,406,606

Current liabilities:

Short-term borrowings

$         1,713,968

$         1,600,033

Accounts and notes payable

847,202

736,779

Amounts due to related parties

11,561

19,912

Other payables

240,179

223,584

Short-term commercial paper

134,016

131,432

Advances from customers

92,393

90,101

Derivative liabilities - current

10,765

9,625

Liabilities held-for-sale

124,662

279,272

Financing liability

414,339

459,258

Other current liabilities

123,556

171,070

Total current liabilities

3,712,641

3,721,066

Accrued warranty costs

62,731

61,139

Convertible notes

125,794

125,569

Long-term borrowings

462,104

493,455

Derivatives liabilities - non-current

157

-

Liability for uncertain tax positions

8,547

8,431

Deferred tax liabilities - non-current

23,979

23,348

Loss contingency accruals

22,982

22,654

Other non-current liabilities

82,366

51,554

Total LIABILITIES

4,501,301

4,507,216

Equity:

Common shares

701,283

701,283

Additional paid-in capital

(8,046)

(8,897)

Retained earnings

270,774

284,109

Accumulated other comprehensive loss

(79,174)

(91,814)

Total Canadian Solar Inc. shareholders' equity

884,837

884,681

Non-controlling interests in subsidiaries

12,271

14,709

TOTAL EQUITY

897,108

899,390

TOTAL LIABILITIES AND EQUITY

$         5,398,409

$         5,406,606

 

About Non-GAAP Financial Measures

To supplement its financial disclosures presented in accordance with GAAP, the Company uses non-GAAP measures which are adjusted from the most comparable GAAP measures for certain items as described below. The Company presents non-GAAP net income and diluted earnings per share so that readers of the press release can better understand the underlying operating performance of the business before the impact of the LDK provision in the first quarter of 2017 and AD/CVD true-up provision in the fourth quarter of 2016. The non-GAAP numbers are not measures of financial performance under U.S. GAAP, and should not be considered in isolation or as an alternative to other measures determined in accordance with GAAP. These non-GAAP measures may differ from non-GAAP measures used by other companies, and therefore their comparability may be limited.

Reconciliation of U.S. GAAP to Non-GAAP financial measures

Statement of Operations Data:

(In Thousands, except per share amounts)

Three Months Ended

March 31, 2017

December 31, 2016

Net loss attributable to Canadian Solar Inc.

$         (13,335)

$        (13,328)

LDK provision

8,615

-

AD/CVD true-up provision

-

44,126

Income tax effect

(1,292)

(16,631)

Non-GAAP net income (loss) attributable to Canadian Solar Inc.

(6,012)

14,167

57,832,572

58,092,689

Shares used in computation – diluted                                                                                                                       

GAAP loss per share-diluted

(0.23)

(0.23)

Non-GAAP earnings (loss) per share-diluted

(0.10)

0.24

 

Mary Ma, Senior Supervisor, Investor Relations, Canadian Solar Inc., investor@canadiansolar.com

 

Copyright © 2017 PVinsights.com All rights reserved