First Solar, Inc.
Announces First Quarter 2019 Financial Results
Net sales of $532 million
Net loss per share of $(0.64)
Cash, restricted cash and marketable securities of $2.3 billion, net cash
of $1.7 billion
YTD net bookings of 2.3GWDC; 1.1GWDC since
prior earnings call
Raise 2019 net sales and net cash guidance; Maintain 2019 EPS guidance of
$2.25 to $2.75
TEMPE, Ariz., May 02, 2019 -- First
Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first
quarter ended March 31, 2019. Net sales for the first quarter were $532
million, a decrease of $159 million from the prior quarter, primarily due to
lower systems project revenue in the United States and Japan.
The Company reported a first quarter
loss per share of $(0.64), compared to earnings per share of $0.49 in the
fourth quarter of 2018.
Cash, restricted cash and marketable
securities at the end of the first quarter decreased to $2.3 billion from $2.7
billion at the end of the prior quarter, primarily as a result of ongoing
capital investments in Series 6 manufacturing capacity, factory ramp activities
and the timing of cash receipts from certain systems project sales.
"During the first
quarter of 2019 we continued to realize advancements in Series 6 throughput and
efficiency and we are particularly pleased with the start-up and ongoing ramp
of our second facility in Vietnam, said Mark Widmar,
CEO of First Solar. "Series 6 demand
remains robust, and we are encouraged by the strong year-to-date bookings which
are on track to exceed our targeted annual bookings-to-shipments ratio."
2019 guidance has been updated as a
result of greater expected module and system sales, increased ramp related and
EPC costs, and lower projected operating costs. The complete 2019 guidance is
as follows:
2019 Guidance
Prior
Current
Net Sales
$3.25B to $3.45B
$3.5B to $3.7B
Gross Margin % (1)
19.5% to 20.5%
18% to 19%
Operating Expenses (2)
$375M to $395M
$370M to $390M
Operating Income
$260M to $310M
Unchanged
Earnings per Share
$2.25 to $2.75
Unchanged
Net Cash Balance (3)
$1.6B to $1.8B
$1.7B to $1.9B
Capital Expenditures
$650M to $750M
Unchanged
Shipments
5.4GW to 5.6GW
Unchanged
Includes $45 to $55 million
of ramp costs ($35 to $45 million previously)
Includes $70 to $80 million
of production start-up expense ($75 to $85 million previously)
Defined as cash, restricted cash and marketable
securities less expected debt at the end of 2019
About First
Solar, Inc.
First Solar is a
leading global provider of comprehensive photovoltaic ("PV") solar systems
which use its advanced module and system technology. The Company's integrated power plant solutions
deliver an economically attractive alternative to fossil-fuel electricity
generation today. From raw material sourcing through end-of-life module
recycling, First Solar's renewable energy
systems protect and enhance the environment. For more information about First
Solar, please visit www.firstsolar.com.
For First Solar
Investors
This release
contains forward-looking statements which are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. All
statements in this release, other than statements of historical fact, are
forward-looking statements. These forward-looking statements include, but are
not limited to, statements concerning: our financial guidance for 2019; the
transition to Series 6 module manufacturing in 2019; net sales, gross margin,
operating expenses, operating income, earnings per share, net cash balance,
capital expenditures, shipments, products and our business and financial
objectives for 2019. These forward-looking statements are often characterized
by the use of words such as "estimate,""expect,""anticipate,""project,""plan,""intend,""seek,""believe,""forecast,""foresee,""likely,""may,""should,""goal,""target,""might,""will,""could,""predict,""continue" and the negative
or plural of these words and other comparable terminology. Forward-looking
statements are only predictions based on our current expectations and our
projections about future events and therefore speak only as of the date of this
release. You should not place undue reliance on these forward-looking
statements. We undertake no obligation to update any of these forward-looking
statements for any reason, whether as a result of new information, future
developments or otherwise. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievements to differ materially
from those expressed or implied by these statements. These factors include, but
are not limited to: structural imbalances in global supply and demand for PV
solar modules; the market for renewable energy, including solar energy; our
competitive position and other key competitive factors; reduction, elimination,
or expiration of government subsidies, policies, and support programs for solar
energy projects; the impact of public policies, such as tariffs or other trade
remedies imposed on solar cells and modules; our ability to execute on our
long-term strategic plans; our ability to execute on our solar module
technology and cost reduction roadmaps; our ability to improve the wattage of
our solar modules; interest rate fluctuations and both our and our customers' ability to
secure financing; the creditworthiness of our offtake counterparties and the
ability of our offtake counterparties to fulfill their contractual obligations
to us; the ability of our customers to perform under their contracts with us;
our ability to attract new customers and to develop and maintain existing
customer and supplier relationships; our ability to successfully develop and
complete our systems business projects; our ability to convert existing
production facilities to support new product lines, such as Series 6 module
manufacturing; general economic and business conditions, including those
influenced by U.S., international, and geopolitical events; environmental
responsibility, including with respect to cadmium telluride ("CdTe") and other semiconductor materials;
claims under our limited warranty obligations; changes in, or the failure to
comply with, government regulations and environmental, health, and safety
requirements; effects resulting from pending litigation, including the class
action lawsuit against us; future collection and recycling costs for solar
modules covered by our module collection and recycling program; our ability to
protect our intellectual property; our ability to prevent and/or minimize the
impact of cyber-attacks or other breaches of our information systems; our
continued investment in research and development; the supply and price of
components and raw materials, including CdTe; our
ability to attract and retain key executive officers and associates; and the
matters discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of
Financial Conditions and Results of Operations" of our most recent Annual Report on Form 10-K, as
supplemented by our other filings with the Securities and Exchange Commission.
FIRST SOLAR, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)
March 31,
2019
December 31,
2018
ASSETS
Current assets:
Cash and cash equivalents
$
1,013,402
$
1,403,562
Marketable securities
1,103,812
1,143,704
Accounts receivable trade, net
301,669
128,282
Accounts receivable, unbilled and retainage
367,140
458,166
Inventories
459,472
387,912
Balance of systems parts
59,890
56,906
Project assets
80,278
37,930
Prepaid expenses and other current assets
277,163
243,061
Total current assets
3,662,826
3,859,523
Property, plant and equipment, net
1,859,293
1,756,211
PV solar power systems, net
305,628
308,640
Project assets
492,011
460,499
Deferred tax assets, net
78,283
77,682
Restricted cash and investments
388,637
318,390
Goodwill
14,462
14,462
Intangible assets, net
71,641
74,162
Inventories
142,192
130,083
Notes receivable, affiliate
-
22,832
Other assets
241,953
98,878
Total assets
$
7,256,926
$
7,121,362
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
221,738
$
233,287
Income taxes payable
7,865
20,885
Accrued expenses
408,031
441,580
Current portion of long-term debt
12,361
5,570
Deferred revenue
166,984
129,755
Other current liabilities
19,537
14,380
Total current liabilities
836,516
845,457
Accrued solar module collection and recycling
liability
134,228
134,442
Long-term debt
558,356
461,221
Other liabilities
598,665
467,839
Total liabilities
2,127,765
1,908,959
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value per share;
500,000,000 shares authorized; 105,352,685
and 104,885,261 shares issued and outstanding at March 31, 2019 and December
31, 2018, respectively
105
105
Additional paid-in capital
2,814,115
2,825,211
Accumulated earnings
2,373,954
2,441,553
Accumulated other comprehensive loss
(59,013
)
(54,466
)
Total stockholders' equity
5,129,161
5,212,403
Total liabilities and stockholders' equity
$
7,256,926
$
7,121,362
FIRST SOLAR, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
Three Months Ended
March 31,
2019
December 31,
2018
March 31,
2018
Net sales
$
531,978
$
691,241
$
567,265
Cost of sales
531,866
592,931
394,467
Gross profit
112
98,310
172,798
Operating expenses:
Selling, general and administrative
45,352
51,338
41,126
Research and development
21,877
21,388
20,324
Production start-up
9,522
14,576
37,084
Total operating expenses
76,751
87,302
98,534
Operating (loss) income
(76,639
)
11,008
74,264
Foreign currency gain (loss), net
172
1,908
(2,517
)
Interest income
14,259
14,643
11,824
Interest expense, net
(10,121
)
(11,476
)
(5,182
)
Other income, net
3,509
32,102
17,934
(Loss) income before taxes and equity in earnings
(68,820
)
48,185
96,323
Income tax benefit (expense)
1,394
4,416
(11,625
)
Equity in earnings, net of tax
(173
)
(485
)
(1,747
)
Net (loss) income
$
(67,599
)
$
52,116
$
82,951
Net (loss) income per share:
Basic
$
(0.64
)
$
0.50
$
0.79
Diluted
$
(0.64
)
$
0.49
$
0.78
Weighted-average number of shares used in per
share calculations:
