First Solar, Inc. Announces First Quarter 2019 Financial Results
May 02 2019 - 4:05PM
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
First Solar has scheduled a conference call for
today, May 2, 2019 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 2019
guidance.
An audio replay of the conference call will also
be available approximately two hours after the conclusion of the
call. The audio replay will remain available through Thursday, May
9, 2019 and can be accessed by dialing 800-585-8367 if you are
calling from within the United States or 416-621-4642 if you are
calling from outside the United States and entering the replay pass
code 5479034. A replay of the webcast will be available on the
Investors section of the Company’s website approximately two hours
after the conclusion of the call and will remain available for
approximately 90 calendar days.
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.
Contacts
First Solar
Investorsinvestor@firstsolar.com
First Solar
Mediamedia@firstsolar.com
|
FIRST SOLAR, INC. AND
SUBSIDIARIESCONSOLIDATED 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
SUBSIDIARIESCONSOLIDATED 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: |
|
|
|
|
|
|
Basic |
|
105,046 |
|
|
104,845 |
|
|
104,550 |
|
Diluted |
|
105,046 |
|
|
105,819 |
|
|
106,305 |
|
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