SINGAPORE, May 20, 2021 /PRNewswire/ -- Maxeon Solar
Technologies, Ltd. (NASDAQ:MAXN) ("Maxeon" or "the Company"), a
global leader in solar innovation and channels, today announced its
financial results for the first quarter ended April 4,
2021.
Commenting on first quarter results, Maxeon's Chief Executive
Officer Jeff Waters noted, "As
expected, results for the first quarter of 2021 were in line with
our recently offered outlook. Shipment and revenue declines
reflected the natural seasonal pattern in our distributed
generation business, combined with our ongoing pause in large
scale. Gross margins were relatively stable considering the volume
decline, with better average selling prices offsetting volume
deleveraging. Operating expenses ran higher sequentially, but in
line with projections. As we conclude the remaining SunPower
separation activities, we expect to bring operating expenses down
in the quarters ahead."
Looking ahead, Waters elaborated, "We are optimistic about our
long-term prospects as we continue to make significant progress in
key strategic growth areas. Our newly announced initiative to bring
Performance line products to North
America is progressing rapidly, with an agreement to supply
approximately 1 GW for Primergy's Gemini Project. Our Beyond the
Panel strategy is unfolding as planned, with Maxeon AC panels on
track to exceed 20% of distributed generation revenues outside
the United States as we exit the
year. As well, we continue to optimize our manufacturing footprint
and support margins as we ramp Maxeon 6 production and phase out
our legacy Maxeon 2 line."
Waters concluded, "Maxeon has a heritage of leading the solar
industry through advanced technology development, and as an
independent company we are accelerating this effort. Two days ago,
we again demonstrated our technical leadership with the
introduction of Maxeon Air, a disruptive technology platform that
enables the production of frameless, thin, lightweight, and
conformable solar panels. The Maxeon Air solar panel can open new
market opportunities. Furthermore, research and development on our
next-generation Maxeon 7 is hitting its milestones, with visibility
for greater than 25% efficiency at launch. We are enthusiastic
about our technology roadmap, which we believe will drive robust
growth for years to come."
Selected Q1 Financial Summary
(In thousands,
except shipments)
|
Fiscal Q1
2021
|
|
Fiscal Q4
2020
|
|
Fiscal Q1
2020
|
Shipments, in
MW
|
379
|
|
|
655
|
|
|
531
|
|
Revenue(1)
|
$
|
165,417
|
|
|
$
|
245,564
|
|
|
$
|
227,640
|
|
Gross
profit(1)
|
1,051
|
|
|
7,313
|
|
|
3,232
|
|
Operating
expenses(1)
|
37,207
|
|
|
32,805
|
|
|
32,812
|
|
Net (loss) income
attributable to stockholders(1)
|
(38,814)
|
|
|
3,458
|
|
|
(31,749)
|
|
Capital
investments
|
10,958
|
|
|
13,301
|
|
|
5,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data(1), (2)
|
(In
thousands)
|
Fiscal Q1
2021
|
|
Fiscal Q4
2020
|
|
Fiscal Q1
2020
|
Non-GAAP gross
profit
|
$
|
1,274
|
|
|
$
|
7,657
|
|
|
$
|
3,698
|
|
Non-GAAP operating
expenses
|
35,067
|
|
|
31,644
|
|
|
31,389
|
|
Adjusted
EBITDA
|
(25,650)
|
|
|
(17,035)
|
|
|
(9,379)
|
|
|
|
(1)
|
The Company's GAAP
and Non-GAAP results were impacted by the effects of certain items.
Refer to "Supplementary information affecting GAAP and Non-GAAP
results" below.
|
|
|
(2)
|
The Company's use of
Non-GAAP financial information, including a reconciliation to U.S.
GAAP, is provided under "Use of Non-GAAP Financial Measures"
below.
|
Supplementary
information affecting GAAP and Non-GAAP results
|
|
|
Three Months
Ended
|
(In
thousands)
|
Financial
statements
item affected
|
April 4,
2021
|
|
January 3,
2021
|
|
March 29,
2020
|
Incremental cost of
above market
polysilicon(1)
|
Cost of
revenue
|
$
|
11,618
|
|
|
$
|
18,202
|
|
|
$
|
15,266
|
|
Loss on ancillary
sales of excess
polysilicon(2)
|
Cost of
revenue
|
1,720
|
|
|
2,544
|
|
|
1,987
|
|
|
|
(1)
|
Relates to the
difference between our contractual cost for the polysilicon under
the long-term fixed supply agreements with supplier and the price
of polysilicon available in the market as derived from publicly
available information at the time, multiplied by the volume of
polysilicon we have consumed.
|
|
|
(2)
|
In order to reduce
inventory and improve working capital, we have periodically elected
to sell polysilicon inventory procured under the long-term fixed
supply agreements in the market at prices below our purchase price,
thereby incurring a loss.
|
Second Quarter 2021 Outlook
For the second quarter of 2021, the Company anticipates the
following results:
(In millions,
except shipments)
|
Outlook
|
Shipments, in
MW
|
415 - 475
MW
|
Revenue
|
$165 -
$185
|
Gross
loss(1)
|
$5 - $15
|
Operating
expenses
|
$38 ± $2
|
Non-GAAP operating
expenses(2)
|
$31 ± $2
|
Adjusted
EBITDA(1), (3)
|
$(30) -
$(40)
|
Capital
investments(4)
|
$50 - $60
|
Out-of-market
polysilicon cost(1)
|
$16 - $19
|
Restructuring
charges(2), (5)
|
$5 - $6
|
|
|
(1)
|
Outlook for Gross
loss and Adjusted EBITDA includes out-of-market polysilicon
cost.
|
|
|
(2)
|
The Company's
Non-GAAP operating expenses are impacted by the effects of
adjusting for stock-based compensation expense and restructuring
charges.
|
|
|
(3)
|
The Company cannot
provide a reconciliation between its Adjusted EBITDA projection and
the most directly comparable GAAP measures without unreasonable
efforts because it is unable to predict with reasonable certainty
the ultimate outcome of the remeasurement gain or loss of prepaid
forward.
|
|
|
(4)
|
Capital investments
are directed mainly to upgrading production from Maxeon 2 to Maxeon
5 and 6 in our Malaysia factory, and research and development
activities related to the new Maxeon 7 technology.
|
|
|
(5)
|
We are in the process
of closing our module factory in Toulouse, France resulting in
anticipated restructuring charges. The restructuring charges are
included in operating expenses.
|
These anticipated results for the second quarter of 2021 are
preliminary, unaudited and represent the most current information
available to management. The Company's business outlook is based on
management's current views and estimates with respect to market
conditions, production capacity, the uncertainty of the continuing
impact of the COVID-19 pandemic, and the global economic
environment. Please refer to Forward Looking Statements
section below. Management's views and estimates are subject
to change without notice.
For more information
Maxeon's first quarter 2021 financial results and management
commentary can be found on Form 6-K by accessing the Financials
& Filings page of the Investor Relations section of Maxeon's
website at: https://www.maxeon.com/investor-relations. The Form 6-K
and Company's other filings are also available online from the
Securities and Exchange Commission at www.sec.gov.
Conference Call Details
The Company will hold a conference call on May 20, 2021, at 6:00
PM U.S. ET / May 21, 2021, at
6:00 AM Singapore Time, to discuss
results and to provide an update on the business. Conference call
details are below.
Dial-in:
North America (toll-free): +1
(833) 301-1154
International: +1 (914) 987-7395
Singapore: +65 3165-4607
Conference ID: 9747889
A simultaneous webcast of the conference call will be available
on Maxeon's website at
https://www.maxeon.com/events-and-presentations.
Listeners should dial in or log on 10 minutes in advance.
A replay will be available online within 24 hours after the
event.
A replay of the conference call may be accessed by phone at the
following numbers until May 27, 2021.
To access the replay, please reference the following numbers:
North America (toll-free): +1
(855) 859-2056 / +1 (800) 585-8367
International: +1 (404) 537-3406
Conference ID: 9747889
About Maxeon Solar Technologies
Maxeon Solar Technologies Ltd (NASDAQ: MAXN) is Powering
Positive ChangeTM. Headquartered in Singapore, Maxeon designs, manufactures and
manufactures Maxeon® and SunPower® brand solar panels, and has
sales operations in more than 100 countries, operating under the
SunPower brand in certain countries outside the United States. The Company is a leader in
solar innovation with access to over 1,000 patents and two
best-in-class solar panel product lines. With operations in
Africa, Asia, Oceania, Europe and Mexico, Maxeon's products span the global
rooftop and solar power plant markets through a network of more
than 1,200 trusted partners and distributors. A pioneer in
sustainable solar manufacturing, Maxeon leverages a 35-year history
in the solar industry and numerous awards for its technology. For
more information about how Maxeon is Powering Positive
ChangeTM visit us at https://www.maxeon.com/, on
LinkedIn and on Twitter.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding: (a) our
expectations regarding pricing trends, demand and growth
projections; (b) potential disruptions to our operations and supply
chain that may result from epidemics or natural disasters,
including the duration, scope and impact on the demand for our
products and the pace of recovery from the COVID-19 pandemic; (c)
anticipated product launch timing and our expectations regarding
ramp, customer acceptance and demand, upsell and expansion
opportunities; (d) our expectations and plans for short- and
long-term strategy, including our anticipated areas of focus and
investment, market expansion, product and technology focus, and
projected growth and profitability; (e) our liquidity, substantial
indebtedness, and ability to obtain additional financing or
renegotiate our existing financing arrangements; (f) our upstream
technology outlook, including anticipated fab utilization and
expected ramp and production timelines for the Company's Maxeon 5
and 6, next-generation Maxeon 7 and Performance line solar panels,
expected cost reduction, and future performance; (g) our strategic
goals and plans, including partnership discussions with respect to
the Company's next generation technology, and our relationships
with existing customers, suppliers and partners, and our ability to
achieve and maintain them; (h) expectations regarding our future
performance and revenues resulting from contracted orders,
bookings, backlog, and pipelines in our sales channels; (i)
expected demand recovery and market traction for Maxeon as a result
of anticipated product launches; (j) our second quarter
fiscal year 2021 guidance, including revenue, gross profit,
operating expenses, non-GAAP operating expenses, Adjusted EBITDA,
capital investments, restructuring charges, out-of-market
polysilicon cost, and related assumptions; (k) our expectations
regarding the potential outcome, or financial or other impact on
our business, as a result of the Spin-off from SunPower
Corporation; and (l) our projected effective tax rate and changes
to the valuation allowance related to our deferred tax assets. The
forward-looking statements can be also identified by terminology
such as "may," "might," "could," "will," "aims," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, the
quotations from management in this press release and Maxeon's
operations and business outlook contain forward-looking
statements.
These forward-looking statements are based on our current
assumptions, expectations and beliefs and involve substantial risks
and uncertainties that may cause results, performance or
achievement to materially differ from those expressed or implied by
these forward-looking statements. These statements are not
guarantees of future performance and are subject to a number of
risks. The reader should not place undue reliance on these
forward-looking statements, as there can be no assurances that the
plans, initiatives or expectations upon which they are based will
occur. Factors that could cause or contribute to such differences
include, but are not limited to: (1) challenges in executing
transactions key to our strategic plans, including regulatory and
other challenges that may arise; (2) potential disruptions to our
operations and supply chain that may result from damage or
destruction of facilities operated by our suppliers, epidemics or
natural disasters, including impacts of the COVID-19 pandemic; (3)
the success of our ongoing research and development efforts and our
ability to commercialize new products and services, including
products and services developed through strategic partnerships; (4)
competition in the solar and general energy industry and downward
pressure on selling prices and wholesale energy pricing; (5) our
liquidity, substantial indebtedness, and ability to obtain
additional financing for our projects and customers; (6) changes in
public policy, including the imposition and applicability of
tariffs; (7) regulatory changes and the availability of economic
incentives promoting use of solar energy; (8) fluctuations in our
operating results; (9) appropriately sizing our manufacturing
capacity and containing manufacturing and logistics difficulties
that could arise; (10) unanticipated impact to customer demand and
sales schedules due, among other factors, to the spread of COVID-19
and other environmental disasters; (11) challenges managing our
acquisitions, joint ventures and partnerships, including our
ability to successfully manage acquired assets and supplier
relationships; and (12) unpredictable outcomes resulting from our
litigation activities. A detailed discussion of these factors and
other risks that affect our business is included in filings we make
with the Securities and Exchange Commission ("SEC") from time to
time, including our most recent report on Form 20-F, particularly
under the heading "Risk Factors". Copies of these filings are
available online from the SEC at www.sec.gov, or on the SEC Filings
section of our Investor Relations website at
https://www.maxeon.com/investor-relations. All forward-looking
statements in this press release are based on information currently
available to us, and we assume no obligation to update these
forward-looking statements in light of new information or future
events.
Use of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP
gross profit, non-GAAP operating expenses and earnings before
interest, taxes, depreciation and amortization ("EBITDA") adjusted
for stock-based compensation, restructuring charges and
remeasurement gain on prepaid forward and physical delivery forward
("Adjusted EBITDA") to supplement our condensed consolidated and
combined financial results presented in accordance with GAAP.
Non-GAAP gross profit is defined as gross profit excluding
stock-based compensation. Non-GAAP operating expenses is defined as
operating expenses excluding stock-based compensation and
restructuring charges.
We believe that non-GAAP gross profit, non-GAAP operating
expenses and Adjusted EBITDA provide greater transparency into
management's view and assessment of the Company's ongoing operating
performance by removing items management believes are not
representative of our continuing operations and may distort our
longer-term operating trends. We believe these measures are useful
to help enhance the comparability of our results of operations
across different reporting periods on a consistent basis and with
our competitors, distinct from items that are infrequent or not
associated with the Company's core operations as presented above.
We also use these non-GAAP measures internally to assess our
business, financial performance and current and historical results,
as well as for strategic decision-making and forecasting future
results. Given our use of non-GAAP measures, we believe that these
measures may be important to investors in understanding our
operating results as seen through the eyes of management. These
non-GAAP measures are neither prepared in accordance with GAAP nor
are they intended to be a replacement for GAAP financial data,
should be reviewed together with GAAP measures and may be different
from non-GAAP measures used by other companies.
As presented in the "Reconciliation of Non-GAAP Financial
Measures" section, each of the non-GAAP financial measures excludes
one or more of the following items in arriving to the non-GAAP
measures:
- Stock-based compensation expense. Stock-based
compensation relates primarily to equity incentive awards.
Stock-based compensation is a non-cash expense that is dependent on
market forces that are difficult to predict and is excluded from
non-GAAP gross profit, non-GAAP operating expense and Adjusted
EBITDA. Management believes that this adjustment for stock-based
compensation expense provides investors with a basis to measure our
core performance, including the ability to compare our performance
with the performance of other companies, without the
period-to-period variability created by stock-based
compensation.
- Restructuring charges (benefits). We incur restructuring
charges related to reorganization plans aimed towards realigning
resources consistent with our global strategy and improving its
overall operating efficiency and cost structure. Restructuring
charges are excluded from non-GAAP operating expenses and Adjusted
EBITDA because they are not considered core operating activities
and such costs have historically occurred infrequently. Although we
have engaged in restructuring activities in the past, past
activities have been discrete events based on unique sets of
business objectives. As such, management believes that it is
appropriate to exclude restructuring charges from our non-GAAP
financial measures as they are not reflective of ongoing operating
results nor do these charges contribute to a meaningful evaluation
of our past operating performance.
- Remeasurement gain on prepaid forward and physical delivery
forward. This relates to the mark-to-market fair value
remeasurement of privately negotiated prepaid forward and physical
delivery transactions. The transactions were entered into in
connection with the issuance on July 17,
2020 of the 6.50% Green Convertible Senior Notes due 2025
for an aggregate principal amount of $200.0
million. The prepaid forward is remeasured to fair value at
the end of each reporting period, with changes in fair value booked
in earnings. The fair value of the prepaid forward is primarily
affected by the Company's share price. The physical delivery
forward was remeasured to fair value at the end of the Note
Valuation Period on September 29,
2020, and was reclassified to equity after remeasurement,
and will not be subsequently remeasured. The fair value of the
physical delivery forward was primarily affected by the Company's
share price. The remeasurement gain on prepaid forward and physical
delivery forward is excluded from Adjusted EBITDA because it is not
considered core operating activities. As such, management believes
that it is appropriate to exclude these mark-to-market adjustments
from our Adjusted EBITDA as they are not reflective of ongoing
operating results nor do these gains contribute to a meaningful
evaluation of our past operating performance.
Reconciliation of
Non-GAAP Financial Measures
|
|
Three Months
Ended
|
(In
thousands)
|
April 4,
2021
|
|
January 3,
2021
|
|
March 29,
2020
|
GAAP gross
profit
|
$
|
1,051
|
|
|
$
|
7,313
|
|
|
$
|
3,232
|
|
Stock-based
compensation
|
223
|
|
|
344
|
|
|
466
|
|
Non-GAAP gross
profit
|
1,274
|
|
|
7,657
|
|
|
3,698
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
37,207
|
|
|
32,805
|
|
|
32,812
|
|
Stock-based
compensation
|
(1,281)
|
|
|
(1,170)
|
|
|
(1,423)
|
|
Restructuring
(charges) benefits
|
(859)
|
|
|
9
|
|
|
—
|
|
Non-GAAP operating
expenses
|
35,067
|
|
|
31,644
|
|
|
31,389
|
|
|
|
|
|
|
|
GAAP net (loss)
income attributable to stockholders
|
(38,814)
|
|
|
3,458
|
|
|
(31,749)
|
|
Interest expense,
net
|
7,612
|
|
|
8,127
|
|
|
5,905
|
|
Provision for income
taxes
|
2,262
|
|
|
4,737
|
|
|
468
|
|
Depreciation
|
9,217
|
|
|
9,068
|
|
|
12,288
|
|
Amortization
|
65
|
|
|
39
|
|
|
1,820
|
|
EBITDA
|
(19,658)
|
|
|
25,429
|
|
|
(11,268)
|
|
Stock-based
compensation
|
1,504
|
|
|
1,514
|
|
|
1,889
|
|
Restructuring charges
(benefits)
|
859
|
|
|
(9)
|
|
|
—
|
|
Remeasurement gain on
prepaid forward and physical delivery
forward
|
(8,355)
|
|
|
(43,969)
|
|
|
—
|
|
Adjusted
EBITDA
|
(25,650)
|
|
|
(17,035)
|
|
|
(9,379)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Outlook
|
|
|
|
|
|
(In
millions)
|
|
|
Outlook
|
Operating
expenses
|
|
|
$38 ±
$2
|
Stock-based
compensation
|
|
|
$(1.5)
|
Restructuring
charges
|
|
|
$(5.5)
|
Non-GAAP operating
expenses
|
|
|
$31 ±
$2
|
©2021 Maxeon Solar Technologies, Ltd. All rights reserved.
MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd.
Visit www.maxeon.com/trademarks for more information.
MAXEON SOLAR
TECHNOLOGIES, LTD.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands,
except for shares data)
|
|
|
As
of
|
|
April 4,
2021
|
|
January 3,
2021
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
131,417
|
|
$
|
206,744
|
Restricted short-term
marketable securities
|
1,351
|
|
1,359
|
Accounts receivable,
net
|
60,479
|
|
76,702
|
Inventories
|
199,082
|
|
169,240
|
Advances to suppliers,
current portion
|
47,379
|
|
43,680
|
Prepaid expenses and
other current assets
|
44,605
|
|
49,470
|
Total current
assets
|
$
|
484,313
|
|
$
|
547,195
|
Property, plant and
equipment, net
|
264,262
|
|
246,908
|
Operating lease
right-of-use assets
|
12,884
|
|
13,482
|
Other intangible
assets, net
|
391
|
|
456
|
Advances to
suppliers, net of current portion
|
36,124
|
|
49,228
|
Other long-term
assets
|
129,696
|
|
123,074
|
Total
assets
|
$
|
927,670
|
|
$
|
980,343
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
167,320
|
|
$
|
159,184
|
Accrued
liabilities
|
65,926
|
|
77,307
|
Contract liabilities,
current portion
|
29,834
|
|
20,756
|
Short term
debt
|
35,587
|
|
48,421
|
Operating lease
liabilities, current portion
|
2,286
|
|
2,464
|
Total current
liabilities
|
$
|
300,953
|
|
$
|
308,132
|
Long-term
debt
|
752
|
|
962
|
Contract liabilities,
net of current portion
|
4,821
|
|
33,075
|
Operating lease
liabilities, net of current portion
|
11,516
|
|
12,064
|
Convertible
debt
|
137,608
|
|
135,071
|
Other long-term
liabilities
|
72,508
|
|
51,752
|
Total
liabilities
|
$
|
528,158
|
|
$
|
541,056
|
Commitments and
contingencies
|
|
|
|
Equity
|
|
|
|
Common stock, no par
value (34,223,806 and 33,995,116 issued and outstanding as of
April 4, 2021 and January 3, 2021, respectively)
|
$
|
—
|
|
$
|
—
|
Additional paid-in
capital
|
450,494
|
|
451,474
|
Accumulated
deficit
|
(47,255)
|
|
(8,441)
|
Accumulated other
comprehensive loss
|
(10,470)
|
|
(10,391)
|
Equity attributable
to the Company
|
392,769
|
|
432,642
|
Noncontrolling
interests
|
6,743
|
|
6,645
|
Total
equity
|
399,512
|
|
439,287
|
Total liabilities
and equity
|
$
|
927,670
|
|
$
|
980,343
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
CONDENSED
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
April 4,
2021
|
|
March 29,
2020
|
Revenue
|
$
|
165,417
|
|
|
$
|
227,640
|
|
Cost of
revenue
|
164,366
|
|
|
224,408
|
|
Gross
profit
|
1,051
|
|
|
3,232
|
|
Operating
expenses
|
|
|
|
Research and
development
|
13,030
|
|
|
8,570
|
|
Sales, general and
administrative
|
23,318
|
|
|
24,242
|
|
Restructuring
charges
|
859
|
|
|
—
|
|
Total operating
expenses
|
37,207
|
|
|
32,812
|
|
Operating
loss
|
(36,156)
|
|
|
(29,580)
|
|
Other income
(expense), net
|
|
|
|
Interest expense,
net
|
(7,612)
|
|
|
(5,905)
|
|
Other, net
|
9,444
|
|
|
4,631
|
|
Other income
(expense), net
|
1,832
|
|
|
(1,274)
|
|
Loss before income
taxes and equity in (losses) earnings of unconsolidated
investee
|
(34,324)
|
|
|
(30,854)
|
|
Provision for income
taxes
|
(2,262)
|
|
|
(468)
|
|
Equity in (losses)
earnings of unconsolidated investee
|
(2,130)
|
|
|
245
|
|
Net loss
|
(38,716)
|
|
|
(31,077)
|
|
Net income
attributable to noncontrolling interests
|
(98)
|
|
|
(672)
|
|
Net loss attributable
to stockholders
|
$
|
(38,814)
|
|
|
$
|
(31,749)
|
|
|
|
|
|
Net loss per share
attributable to stockholders:
|
|
|
|
Basic
|
$
|
(1.14)
|
|
|
$
|
(1.49)
|
|
Diluted
|
(1.14)
|
|
|
(1.49)
|
|
|
|
|
|
Weighted average
shares used to compute net loss per share:
|
|
|
|
Basic
|
34,123
|
|
|
21,265
|
|
Diluted
|
34,123
|
|
|
21,265
|
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
CONDENSED
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY
(unaudited)
(In
thousands)
|
|
|
Shares
|
|
Amount
|
|
Additional
Paid-in
Capital
|
|
Net Parent
Investment
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Equity
Attributable
to the
Company
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
Balance at January
3, 2021
|
33,995
|
|
|
$
|
—
|
|
|
$
|
451,474
|
|
|
$
|
—
|
|
|
$
|
(8,441)
|
|
|
$
|
(10,391)
|
|
|
$
|
432,642
|
|
|
$
|
6,645
|
|
|
$
|
439,287
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,814)
|
|
|
—
|
|
|
(38,814)
|
|
|
98
|
|
|
(38,716)
|
|
Issuance of common
stock for stock-
based compensation, net of tax
withheld
|
229
|
|
|
—
|
|
|
(2,550)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,550)
|
|
|
—
|
|
|
(2,550)
|
|
Recognition of
stock-based
compensation
|
—
|
|
|
—
|
|
|
1,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,570
|
|
|
—
|
|
|
1,570
|
|
Other comprehensive
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
(79)
|
|
|
(79)
|
|
|
—
|
|
|
(79)
|
|
Balance at April
4, 2021
|
34,224
|
|
|
$
|
—
|
|
|
$
|
450,494
|
|
|
$
|
—
|
|
|
$
|
(47,255)
|
|
|
$
|
(10,470)
|
|
|
$
|
392,769
|
|
|
$
|
6,743
|
|
|
$
|
399,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Additional
Paid-in
Capital
|
|
Net Parent
Investment
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Equity
Attributable
to the
Company
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
Balance at
December 29, 2019
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
369,837
|
|
|
$
|
—
|
|
|
$
|
(7,618)
|
|
|
$
|
362,219
|
|
|
$
|
5,304
|
|
|
$
|
367,523
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,749)
|
|
|
—
|
|
|
—
|
|
|
(31,749)
|
|
|
672
|
|
|
(31,077)
|
|
Other comprehensive
income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,612
|
|
|
1,612
|
|
|
—
|
|
|
1,612
|
|
Net Parent
contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
35,958
|
|
|
—
|
|
|
—
|
|
|
35,958
|
|
|
—
|
|
|
35,958
|
|
Balance at March
29, 2020
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
374,046
|
|
|
$
|
—
|
|
|
$
|
(6,006)
|
|
|
$
|
368,040
|
|
|
$
|
5,976
|
|
|
$
|
374,016
|
|
MAXEON SOLAR
TECHNOLOGIES, LTD.
CONDENSED
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(unaudited)
(In
thousands)
|
|
|
Three Months
Ended
|
|
April 4,
2021
|
|
March 29,
2020
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(38,716)
|
|
$
|
(31,077)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
9,292
|
|
14,658
|
Stock-based
compensation
|
1,504
|
|
1,889
|
Non-cash interest
expense
|
3,494
|
|
5,198
|
Equity in losses
(earnings) of unconsolidated investee
|
2,130
|
|
(245)
|
Deferred income
taxes
|
(919)
|
|
808
|
Gain on equity
investments
|
—
|
|
(1,281)
|
Remeasurement gain on
Prepaid Forward
|
(8,355)
|
|
—
|
Other, net
|
1,047
|
|
1,064
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
15,203
|
|
21,645
|
Contract
assets
|
311
|
|
(1,204)
|
Inventories
|
(29,793)
|
|
(13,015)
|
Prepaid expenses and
other assets
|
(446)
|
|
417
|
Operating lease
right-of-use assets
|
598
|
|
—
|
Advances to
suppliers
|
9,405
|
|
8,936
|
Accounts payable and
other accrued liabilities
|
(17,464)
|
|
(65,108)
|
Contract
liabilities
|
2,612
|
|
(36,564)
|
Operating lease
liabilities
|
(726)
|
|
69
|
Net cash used in
operating activities
|
(50,823)
|
|
(93,810)
|
Cash flows from
investing activities
|
|
|
|
Purchases of property,
plant and equipment
|
(10,958)
|
|
(5,746)
|
Proceeds from
dividends and partial return of capital by an
unconsolidated investee
|
—
|
|
2,462
|
Net cash used in
investing activities
|
(10,958)
|
|
(3,284)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
debt
|
50,083
|
|
64,144
|
Repayment of
debt
|
(62,816)
|
|
(60,949)
|
Repayment of finance
lease obligations
|
(180)
|
|
(156)
|
Payment for tax
withholding obligations for issuance of common
stock upon vesting of restricted stock units
|
(2,550)
|
|
—
|
Net Parent
contribution
|
—
|
|
29,273
|
Net cash (used in)
provided by financing activities
|
(15,463)
|
|
32,312
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
105
|
|
(261)
|
Net decrease in cash,
cash equivalents and restricted cash
|
(77,139)
|
|
(65,043)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
209,572
|
|
123,803
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
132,433
|
|
$
|
58,760
|
Non-cash
transactions
|
|
|
|
Property, plant and
equipment purchases funded by liabilities
|
$
|
23,537
|
|
$
|
1,334
|
Interest expense
financed by SunPower
|
—
|
|
4,250
|
Aged supplier
financing balances reclassified from accounts payable
to short term debt
|
—
|
|
5,000
|
The following table reconciles our cash and cash equivalents and
restricted cash reported on our Condensed Consolidated Balance
Sheets and the cash, cash equivalents and restricted cash reported
on our Condensed Consolidated and Combined Statements of Cash Flows
as of April 4, 2021 and March 29, 2020:
(In
thousands)
|
April 4,
2021
|
|
March 29,
2020
|
Cash and cash
equivalents
|
$
|
131,417
|
|
|
$
|
55,792
|
|
Restricted cash,
current portion, included in Prepaid expenses and other
current assets
|
489
|
|
|
2,966
|
|
Restricted cash, net
of current portion, included in Other long-term
assets
|
527
|
|
|
2
|
|
Total cash, cash
equivalents and restricted cash shown in Condensed
Consolidated and Combined Statements of Cash Flows
|
$
|
132,433
|
|
|
$
|
58,760
|
|
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SOURCE Maxeon Solar Technologies, Ltd.