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 lateĀ-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, utilityĀscale 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'
(buildĀtoĀsell) 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' (buildĀtoĀown) 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.
Conference Call Information
The Company will hold a conference call on Tuesday, June 6, 2017 at 8:00 a.m. U.S. Eastern Daylight Time
(8:00 p.m., June 6, 2017
in Hong Kong) to discuss the Company's first quarter 2017
results and business outlook. The dial-in phone number for the live
audio call is +1 866 519 4004 (toll-free from the U.S.), +852 3018
6771 (local dial-in from Hong
Kong) or +1 845 675 0437 from international locations. The
passcode for the call is 19673070. A live webcast of the
conference call will also be available on the investor relations
section of Canadian Solar's website
at www.canadiansolar.com.
A replay of the call will be available four hours after the
conclusion of the call until 10:00
a.m. on Wednesday, June 14, 2017, U.S. Eastern
Daylight Time (10:00 p.m.,
June 14, 2017 in Hong Kong) and can be accessed by
dialing +1 855 452 5696 (toll-free from the U.S.), +852 3051 2780
(local dial-in from HK) or +1 646 254 3697 from international
locations, with passcode 19673070. A webcast replay will also be
available on the investor relations section of Canadian
Solar's at www.canadiansolar.com.
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
ānon-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 ā
diluted
|
GAAP loss per
share-diluted
|
(0.23)
|
(0.23)
|
Non-GAAP earnings
(loss) per share-diluted
|
(0.10)
|
0.24
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/canadian-solar-reports-first-quarter-2017-results-300469314.html
SOURCE Canadian Solar Inc.