First Solar, Inc. Announces Full-Year 2020 Guidance
February 20 2020 - 4:25PM
First Solar, Inc. (Nasdaq: FSLR) today announced full-year 2020
guidance. Forecasted net sales for 2020 are $2.7 to $2.9 billion,
with third party module net sales expected to comprise
approximately 70% of the total net sales. Earnings per share
(“EPS”) is forecasted to be between $3.25 and $3.75. The EPS
guidance provided is inclusive of production ramp costs of $5 to
$15 million, production start-up expenses of $50 to $60 million
associated with the deployment of Series 6 capacity in 2020 and
approximately $30 million of Series 4 shutdown and other severance
costs. The 2020 ending net cash balance is projected to be in the
range of $1.3 to $1.5 billion. The complete 2020 guidance is as
follows:
|
2020 Guidance |
Net Sales |
$2.7B to $2.9B |
Gross Margin % (1) |
26% to 27% |
Operating Expenses (2) |
$340M to $360M |
Operating Income (3) |
$360M to $420M |
Earnings per Share |
$3.25 to $3.75 |
Net Cash Balance (4) |
$1.3B to $1.5B |
Capital Expenditures |
$450M to $550M |
Shipments |
5.8GW to 6.0GW |
____________________
- Includes $5 to $15 million of ramp costs
- Includes $50 to $60 million of plant start-up expense
- Includes $55 to $75 million of ramp costs and plant start-up
expense, and $30 million of Series 4 shutdown and other severance
costs
- Defined as cash, marketable securities and restricted cash less
expected debt at the end of 2020
First Solar also announced today that it,
working together with advisors, is reviewing options for its U.S.
project development business.
“First Solar, at its core, is a technology and
module manufacturing company,” said Mark Widmar, CEO of First
Solar. “Given the significant evolution of developing utility-scale
PV projects in the United States, we believe now is an appropriate
time to evaluate our options with respect to our U.S. project
development business line.”
The consideration of potential options for its
U.S. project development business by First Solar is at a
preliminary stage and may not result in any transaction being
consummated. First Solar does not intend to disclose further
developments with respect to this evaluation process except to the
extent the process is concluded or it is required by law or
otherwise deemed appropriate.
First Solar has scheduled a conference call for
today, February 20, 2020 at 4:30 p.m. ET to discuss this
announcement. A live webcast of this conference call and
accompanying materials are available at
investor.firstsolar.com.
The guidance figures presented above are subject
to a variety of assumptions and estimates. Investors are encouraged
to listen to the conference call and to review the accompanying
materials, which contain more information about First Solar’s 2020
Guidance.
An audio replay of the conference call will be
available through Thursday, February 27, 2020 and can be accessed
by dialing +1 (800) 585-8367 if you are calling from within the
United States or +1 (416) 621-4642 if you are calling from outside
the United States and entering the replay pass code 5717879. A
replay of the webcast will also be available on the Investors
section of the Company’s website approximately five hours after the
conclusion of the call and remain available for 90 days.
About First Solar, Inc.
First Solar is a leading global provider of
comprehensive photovoltaic (“PV”) solar solutions 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 solutions 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 2020; the transition to Series 6 module
manufacturing in 2020; net sales, gross margin, gross margin
percentage, operating expenses, operating income, earnings per
share, net cash balance, capital expenditures, shipments, bookings,
products; the review of options for our U.S. project development
business; and our business and financial objectives for 2020. 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 and counterparties to perform
under their contracts with us; the satisfaction of conditions
precedent in our project sales agreements; 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 opt-out action 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 and our subsequently filed Quarterly Reports on
Form 10-Q, as supplemented by our other filings with the Securities
and Exchange Commission.
Contacts
First Solar
Investorsinvestor@firstsolar.com
First Solar
Mediamedia@firstsolar.com
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