SAN JOSE, Calif., Aug. 5, 2020 /PRNewswire/ -- SunPower Corp.
(NASDAQ:SPWR) today announced financial results for its second
quarter ended June 28, 2020.
Second Quarter Company Highlights
- Exceeded revenue, gross margin, megawatt (MW) and Adjusted
EBITDA guidance
- Positive cash generation of approximately $30 million
SunPower Energy Services (SPES)
- U.S. Channels outperformance / Commercial Direct business -
positive Adjusted EBITDA
- New product expansion –SunVault, our Equinox residential
storage solution; OneRoof for new homes market
SunPower Technologies (SPT)
- Strong recovery in international distributed generation (DG)
demand
- Announced industry leading, 625W, Performance-5 bifacial
shingled panel; Enphase partnership for international DG
market
- Maxeon Solar Technologies successfully completed $325 million in financing to strengthen post-spin
balance sheet
($ Millions,
except percentages and per-share data)
|
2nd Quarter
2020
|
1st Quarter
2020
|
2nd Quarter
2019
|
GAAP
revenue
|
$352.9
|
$449.2
|
$436.3
|
GAAP gross
margin
|
6.1%
|
8.3%
|
4.5%
|
GAAP net income
(loss)
|
$19.4
|
$(1.4)
|
$121.5
|
GAAP net income
(loss) per diluted share
|
$0.11
|
$(0.01)
|
$0.75
|
Non-GAAP
revenue1
|
$352.9
|
$454.4
|
$481.9
|
Non-GAAP gross
margin1
|
9.8%
|
12.5%
|
10.5%
|
Non-GAAP net
loss1
|
$(37.2)
|
$(17.3)
|
$(31.1)
|
Non-GAAP net loss per
diluted share1
|
$(0.22)
|
$(0.10)
|
$(0.22)
|
Adjusted
EBITDA1
|
$(8.9)
|
$9.4
|
$8.0
|
MW
Recognized
|
464
|
538
|
622
|
Cash2
|
$235.3
|
$205.5
|
$167.3
|
|
1Information about SunPower's use of
non-GAAP financial information, including a reconciliation to U.S.
GAAP, is provided under "Use of Non-GAAP Financial Measures"
below.
|
2Includes
cash, and cash equivalents, excluding restricted cash
|
Second Quarter 2020 Results
"We were pleased with our
second quarter performance as strong execution enabled us to exceed
our guidance, generate close to $30
million in positive cash flow and launch new products
despite the Covid-19 virus disruption," said Tom Werner, SunPower CEO and chairman of the
board. "Overall, we saw improving trends in our global DG
business throughout the quarter with particular strength in our
U.S. channels business where the investments in our digital
initiatives enabled us to successfully transition to an on-line
model. We also took a number of important steps to complete
the spin-off of Maxeon Solar Technologies as their 20-F was
declared effective with an expected record date of Aug. 17, 2020 and distribution date of
Aug. 26, 2020. Finally, we
continued our leadership in innovation as we launched a number of
new products including our SunVault residential storage solution,
our OneRoof product for new homes as well as Maxeon's launch of its
new bifacial, shingled panel for the global power plant market.
Looking forward, our fundamentals remain strong and are
well-positioned for success given our differentiated model, new
products and strong balance sheet."
SunPower Energy Services (SPES)
"Our channels business
executed very well in a difficult environment as we saw better than
expected demand improvement as we went through the quarter.
This was reflected in our financial performance as Adjusted EBITDA
rose year over year with our Channels business generating
$33 million in positive cash flow in
the second quarter. Additionally, gross margins doubled compared to
last year, primarily the result of a lower loan and lease cost of
capital, increased sales in our new homes business, as well as the
successful execution of our cost reduction initiatives. Our second
quarter performance also reflected success in our rapid shift to
our residential online sales model as we saw further customer and
dealer adoption of our Design Studio and mySunPower applications,
both of which improve the efficiency of the sales process while
offering a superior customer experience. We were also pleased
to launch our SunVault residential storage solution during the
quarter and are currently rolling out this product nationally this
quarter. Demand for this proprietary all-in-one storage solution is
very strong with initial attach rates in above our 2020 goal of
20%. In new homes, we believe our new, innovative OneRoof product
will further cement our leadership position in this segment. This
product, designed in partnership with KB Home, provides a
fully-integrated, attractive, durable and cost-effective solution
specifically designed for this market. Builder demand for this
product is also high as we have already booked 19 communities
across six builders within two weeks of its initial launch.
With more than 50,000 systems installed and more than 45,000 home
in backlog, we are well-positioned to add to our more than 50
percent market share in new homes."
"Performance in our Commercial Direct business improved during
the quarter as we posted positive Adjusted EBITDA while maintaining
our leading market share. Install volume increased more than 50%
year over year and we remain confident that we will achieve
sustainable profitability in this business in the second half of
this year. Our origination teams again performed well as
approximately 100% of our 2020 forecast is currently in backlog and
were pleased to recently announce our 12.8MW award from the
Washington Metropolitan Area Transit Authority. Additionally, Helix
storage demand remains high as our pipeline exceeds 625 megawatt
hours (MWh) with attach rates of approximately 50% for the balance
of the year."
SunPower Technologies (SPT)
"Our SPT business posted a solid quarter as we exceeded our
shipment guidance by more than 15% with all factories back to
normal operations. Similar to the U.S. DG market, we saw DG demand
improve as we went through the quarter with particular strength in
our European and Australian markets. DG shipments totaled 67% of
volume in the second quarter and we expect further recovery in the
second half of the year. We also achieved a number of important
milestones related to the spin-off of our Maxeon Solar Technologies
business unit during the quarter including its 20-F filing which
was recently declared effective with an expected share distribution
date of August 26, 2020.
Finally, Maxeon continued to position itself as a technology leader
with the anticipated fourth quarter launch of its Perfomance-5
bifacial, up to 625W, shingled product for the global power plant
market, as well as announcing their partnership with Enphase Energy
to bring high-efficiency AC module technology and smart energy
solutions to the international DG market."
Consolidated Financials
"Our second quarter performance reflected the resilience of our
business and strong execution as we quickly responded to the
Covid-19 disruption," said Manavendra Sial, SunPower chief
financial officer. "Our rapid response, along with the proactive
implementation of a number of initiatives, enabled us to achieve
positive cash generation for the quarter with $500 million in liquidity identified for
Sun Power post spin. Additionally,
we were pleased to see Maxeon complete its successful $200 million convertible green bond offering and
closure of $125 million in banking
facilities. As a result, both companies will be well capitalized
post transaction. Finally, we added to our financing flexibility in
the Commercial Direct space as we closed a new, innovative
financing facility that allows for more efficient working capital
utilization while improving our
economics."
Second quarter of fiscal year 2020 non-GAAP results exclude net
adjustments that, in the aggregate, increased non-GAAP loss by
$56.6 million, including $71.1 million related to gain on mark-to-market
gain on equity investments, and $10.5
million related to gain on business divestiture. This was
partially offset by $9.6 million
related to the cost of above-market polysilicon, $5.9 million related to stock-based compensation
expense, $4.1 million related to
business reorganization costs and restructuring charges,
$2.4 million transaction-related
costs, $1.8 million related to
amortization of intangible assets, and $1.2
million related to other non-recurring items and tax
effects.
Financial Outlook
The company's third quarter 2020 GAAP and non-GAAP guidance is as
follows: on a GAAP and non-GAAP basis, revenue of $360 million to $400
million, GAAP gross margin of 0 percent to 5 percent and net
loss of $110 million to $95 million.
The company's third quarter 2020 Non-GAAP gross margin and
Adjusted EBITDA guidance, on a combined basis, now includes an
approximate $40 million impact for
the entire quarter in its SPT segment as a result of its out of
market polysilicon contract. Additionally, upon completion of the
Maxeon spin-off, expected on August 26,
2020, the obligation under the polysilicon contract will be
retained by Maxeon and will expire in fiscal 2022.
As a result, the company expects third quarter 2020 non-GAAP
gross margin of 0 percent to 6 percent and Adjusted EBITDA guidance
in the range of negative $35 million
to negative $20 million with SPT in
the range of negative $38 to
$28 million and SPES in the range of
positive $8 to $14 million.
The company also expects megawatts recognized to be in the range
of 500 MW to 560 MW as well as positive cash generation for
SunPower in the third quarter.
For the fourth quarter and after the company's expected spin-off
of Maxeon, both companies expect a continued improvement in the
global solar demand environment through the end of the year, with
particular strength in the DG segment.
Capital Markets Day
SunPower will discuss its
strategic outlook as well as provide additional details related to
its fiscal year 2020 financial performance at its virtual Capital
Markets Day to be held on September
10, 2020. Please note that the entire event will be
webcast and relevant materials will be posted to the company's
website prior to the event. To register for and listen to the
webcast, investors are encouraged to visit the company's Events and
Presentations section of the SunPower Investor Relations page at
http://investors.sunpower.com/events.cfm prior to the event.
The company will host a conference call for investors this
afternoon to discuss its second quarter 2020 performance at
1:30 p.m. Pacific Time. The call will
be webcast and can be accessed from SunPower's website at
http://investors.sunpower.com/events.cfm
This press release contains both GAAP and non-GAAP financial
information. Non-GAAP figures are reconciled to the closest GAAP
equivalent categories in the financial attachment of this press
release. Please note that the company has posted supplemental
information and slides related to its first quarter 2020
performance on the Events and Presentations section of SunPower's
Investor Relations page at
http://investors.sunpower.com/events.cfm
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) statements
regarding the anticipated spin-off of Maxeon Solar Technologies,
including timing and certainty; (b) our positioning for future
success; (c) our plans and expectations for our products and
planned products, including the timing and scope of planned
launches and rollouts, anticipated demand, and impacts on our
market position and our ability to meet our targets and goals; (d)
the expected financial performance of our business lines, including
the timing of anticipated demand recovery and timing and
expectations for returning our Commercial Direct business to
profitability; (e) our expectations regarding our industry and
market factors, including anticipated demand and volume; (f)
expectations regarding our future performance based on bookings,
backlog, and pipelines in our sales channels; (g) the amount,
likelihood, and timing of realization of potential additional
sources of liquidity; (h) our expectations for the financial
impacts of our new tax-equity partnership; (i) our third quarter
fiscal 2020 guidance, including GAAP revenue, gross margin, and net
loss, as well as non-GAAP revenue, gross margin, Adjusted EBITDA,
and MW deployed, and related assumptions; (j) plans and
expectations for SunPower and Maxeon Solar Technologies post-spin
off, including our expectations regarding global market factors,
demand improvement and the timing and focus thereof, the expected
financial performance of each company; (k) our plans and
expectations regarding SunPower's ability to achieve sustainable
profitability in the second half of the year and expected revenue
and gross margin improvement in its business segments in the fourth
quarter; (l) plans for and expected content of SunPower's planned
Capital Markets Day; and (m) expected demand recovery and market
traction for Maxeon Solar Technologies as a result of anticipated
product launches.
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. 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 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; and (10)
challenges managing our acquisitions, joint ventures and
partnerships, including our ability to successfully manage acquired
assets and supplier relationships. In addition, the proposed and
the associated investment by TZS in Maxeon Solar may not be
consummated within the anticipated period or at all and the
ultimate results of any separation depend on a number of factors,
including the development of final plans and the impact of local
regulatory requirements. 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 10-K,
particularly under the heading "Risk Factors." Copies of
these filings are available online from the SEC or on the SEC
Filings section of our Investor Relations website at
investors.sunpower.com. 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.
©2020 SunPower Corporation. All rights reserved. SUNPOWER,
the SUNPOWER logo, EQUINOX and HELIX are trademarks or registered
trademarks of SunPower Corporation in the U.S. and other countries
as well.
SUNPOWER
CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
Jun. 28
|
|
Dec. 29,
|
|
2020
|
|
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
235,307
|
|
$
422,955
|
Restricted cash and
cash equivalents, current portion
|
30,631
|
|
26,348
|
Restricted short-term
marketable securities
|
6,322
|
|
6,187
|
Accounts receivable,
net
|
157,132
|
|
226,476
|
Contract
assets
|
105,221
|
|
99,426
|
Inventories
|
360,416
|
|
358,257
|
Advances to
suppliers, current portion
|
108,464
|
|
107,388
|
Project assets -
plants and land, current portion
|
24,567
|
|
12,650
|
Prepaid expenses and
other current assets
|
84,718
|
|
121,244
|
Total current
assets
|
1,112,778
|
|
1,380,931
|
|
|
|
|
Restricted cash and
cash equivalents, net of current portion
|
8,420
|
|
9,354
|
Property, plant and
equipment, net
|
299,644
|
|
323,726
|
Operating lease
right-of-use assets
|
56,849
|
|
51,258
|
Solar power systems
leased, net
|
52,441
|
|
54,338
|
Advances to
suppliers, net of current portion
|
889
|
|
13,993
|
Other intangible
assets, net
|
3,280
|
|
7,466
|
Other long-term
assets
|
404,222
|
|
330,855
|
Total
assets
|
$
1,938,523
|
|
$
2,171,921
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
357,046
|
|
$
441,759
|
Accrued
liabilities
|
188,113
|
|
203,890
|
Operating lease
liabilities, current portion
|
11,833
|
|
9,463
|
Contract liabilities,
current portion
|
88,265
|
|
138,441
|
Short-term
debt
|
128,643
|
|
104,856
|
Convertible debt,
current portion
|
309,228
|
|
-
|
Total current
liabilities
|
1,083,128
|
|
898,409
|
|
|
|
|
Long-term
debt
|
92,676
|
|
113,827
|
Convertible
debt
|
421,822
|
|
820,259
|
Operating lease
liabilities, net of current portion
|
51,073
|
|
46,089
|
Contract liabilities,
net of current portion
|
61,782
|
|
67,538
|
Other long-term
liabilities
|
186,737
|
|
204,300
|
Total
liabilities
|
1,897,218
|
|
2,150,422
|
|
|
|
|
Equity:
|
|
|
|
Common
stock
|
170
|
|
168
|
Additional paid-in
capital
|
2,674,379
|
|
2,661,819
|
Accumulated
deficit
|
(2,431,732)
|
|
(2,449,679)
|
Accumulated other
comprehensive loss
|
(10,365)
|
|
(9,512)
|
Treasury stock, at
cost
|
(200,796)
|
|
(192,633)
|
Total stockholders'
equity
|
31,656
|
|
10,163
|
Noncontrolling
interests in subsidiaries
|
9,649
|
|
11,336
|
Total
equity
|
41,305
|
|
21,499
|
Total liabilities and
equity
|
$
1,938,523
|
|
$
2,171,921
|
SUNPOWER
CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
SunPower
Energy Services
|
|
$
217,885
|
|
$
289,869
|
|
$
211,726
|
|
$
507,754
|
|
$
389,947
|
SunPower
Technologies
|
|
170,435
|
|
248,196
|
|
314,971
|
|
418,631
|
|
545,775
|
Intersegment
eliminations
|
|
(35,406)
|
|
(88,875)
|
|
(90,416)
|
|
(124,281)
|
|
(151,216)
|
Total
revenue
|
|
352,914
|
|
449,190
|
|
436,281
|
|
802,104
|
|
784,506
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
SunPower
Energy Services
|
|
179,258
|
|
259,461
|
|
189,262
|
|
438,719
|
|
360,340
|
SunPower
Technologies
|
|
186,861
|
|
257,129
|
|
317,717
|
|
443,990
|
|
600,585
|
Intersegment
eliminations
|
|
(34,803)
|
|
(104,848)
|
|
(90,498)
|
|
(139,651)
|
|
(158,934)
|
Total cost of
revenue
|
|
331,316
|
|
411,742
|
|
416,481
|
|
743,058
|
|
801,991
|
Gross profit
(loss)
|
|
21,598
|
|
37,448
|
|
19,800
|
|
59,046
|
|
(17,485)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
12,335
|
|
15,638
|
|
18,159
|
|
27,973
|
|
33,152
|
Sales, general and
administrative
|
|
55,967
|
|
65,958
|
|
61,978
|
|
121,925
|
|
124,835
|
Restructuring
charges
|
|
1,259
|
|
1,576
|
|
2,453
|
|
2,835
|
|
1,788
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
141
|
|
(274)
|
|
8,301
|
|
(133)
|
|
17,527
|
Gain on business
divestiture
|
|
(10,458)
|
|
-
|
|
(137,286)
|
|
(10,458)
|
|
(143,400)
|
Total operating
expenses
|
|
59,244
|
|
82,898
|
|
(46,395)
|
|
142,142
|
|
33,902
|
Operating income
(loss)
|
|
(37,646)
|
|
(45,450)
|
|
66,195
|
|
(83,096)
|
|
(51,387)
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
174
|
|
404
|
|
566
|
|
578
|
|
1,418
|
Interest
expense
|
|
(10,205)
|
|
(10,537)
|
|
(16,424)
|
|
(20,742)
|
|
(33,215)
|
Other, net
|
|
70,032
|
|
55,069
|
|
67,768
|
|
125,101
|
|
100,841
|
Other income,
net
|
|
60,001
|
|
44,936
|
|
51,910
|
|
104,937
|
|
69,044
|
Income (loss) before
income taxes and equity in losses of unconsolidated
investees
|
|
22,355
|
|
(514)
|
|
118,105
|
|
21,841
|
|
17,657
|
Provision for income
taxes
|
|
(3,068)
|
|
(1,869)
|
|
(6,068)
|
|
(4,937)
|
|
(11,865)
|
Equity in earnings
(losses) of unconsolidated investees
|
|
(889)
|
|
245
|
|
(1,963)
|
|
(644)
|
|
(283)
|
Net income
(loss)
|
|
18,398
|
|
(2,138)
|
|
110,074
|
|
16,260
|
|
5,509
|
Net income attributable to noncontrolling interests and
redeemable
noncontrolling interests
|
|
980
|
|
707
|
|
11,385
|
|
1,687
|
|
26,226
|
Net income (loss)
attributable to stockholders
|
|
$
19,378
|
|
$
(1,431)
|
|
$
121,459
|
|
$
17,947
|
|
$
31,735
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share attributable to stockholders
|
|
$
0.11
|
|
$
(0.01)
|
|
$
0.85
|
|
$
0.11
|
|
$
0.22
|
Diluted net income
(loss) per share attributable to stockholders
|
|
$
0.11
|
|
$
(0.01)
|
|
$
0.75
|
|
$
0.10
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average shares
|
|
170,003
|
|
168,822
|
|
142,471
|
|
169,413
|
|
142,095
|
Diluted
weighted-average shares
|
|
178,118
|
|
168,822
|
|
166,837
|
|
170,971
|
|
143,062
|
SUNPOWER
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
18,398
|
|
$
(2,138)
|
|
$
110,074
|
|
|
$
16,260
|
|
$
5,509
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
16,918
|
|
16,892
|
|
22,534
|
|
|
33,810
|
|
46,724
|
Stock-based
compensation
|
|
5,879
|
|
6,867
|
|
6,270
|
|
|
12,746
|
|
11,936
|
Non-cash interest
expense
|
|
1,838
|
|
1,910
|
|
2,510
|
|
|
3,748
|
|
4,925
|
Non-cash
restructuring charges
|
|
-
|
|
-
|
|
2,346
|
|
|
-
|
|
2,346
|
Bad debt
expense
|
|
1,326
|
|
2,240
|
|
-
|
|
|
3,566
|
|
1,661
|
Equity in (earnings)
losses of unconsolidated investees
|
|
889
|
|
(245)
|
|
1,963
|
|
|
644
|
|
283
|
Gain on equity
investments
|
|
(71,062)
|
|
(49,152)
|
|
(67,500)
|
|
|
(120,214)
|
|
(100,500)
|
Gain on retirement of
convertible debt
|
|
-
|
|
(2,956)
|
|
-
|
|
|
(2,956)
|
|
-
|
Gain on business
divestiture
|
|
(10,458)
|
|
-
|
|
(137,286)
|
|
|
(10,458)
|
|
(143,400)
|
Deferred income
taxes
|
|
1,381
|
|
(349)
|
|
(4)
|
|
|
1,032
|
|
2,044
|
Gain (loss) on sale
and impairment of residential lease assets
|
|
140
|
|
289
|
|
16,728
|
|
|
429
|
|
25,954
|
Impairment of
property, plant and equipment
|
|
-
|
|
-
|
|
777
|
|
|
-
|
|
777
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
79,029
|
|
(20,120)
|
|
(60,827)
|
|
|
58,909
|
|
(50,292)
|
Contract
assets
|
|
(3,164)
|
|
295
|
|
5,697
|
|
|
(2,869)
|
|
7,409
|
Inventories
|
|
36,336
|
|
(43,061)
|
|
(20,386)
|
|
|
(6,725)
|
|
(62,104)
|
Project
assets
|
|
(3,024)
|
|
(8,881)
|
|
(6,974)
|
|
|
(11,905)
|
|
(6,198)
|
Prepaid expenses and
other assets
|
|
9,403
|
|
18,635
|
|
(27,212)
|
|
|
28,038
|
|
(15,485)
|
Operating lease
right-of-use assets
|
|
4,863
|
|
2,923
|
|
(11,383)
|
|
|
7,786
|
|
(8,780)
|
Long-term financing
receivables, net - held for sale
|
|
-
|
|
-
|
|
657
|
|
|
-
|
|
(954)
|
Advances to
suppliers
|
|
3,093
|
|
8,936
|
|
11,719
|
|
|
12,029
|
|
24,774
|
Accounts payable and
other accrued liabilities
|
|
(33,637)
|
|
(92,599)
|
|
40,018
|
|
|
(126,236)
|
|
11,199
|
Contract
liabilities
|
|
(34,324)
|
|
(16,130)
|
|
17,996
|
|
|
(50,454)
|
|
3,418
|
Operating lease
liabilities
|
|
(3,173)
|
|
(2,849)
|
|
11,222
|
|
|
(6,022)
|
|
8,663
|
Net cash provided by
(used in) operating activities
|
|
20,651
|
|
(179,493)
|
|
(81,061)
|
|
|
(158,842)
|
|
(230,091)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(4,592)
|
|
(6,213)
|
|
(11,656)
|
|
|
(10,805)
|
|
(18,204)
|
Cash paid for solar
power systems
|
|
(2,037)
|
|
(610)
|
|
(15,723)
|
|
|
(2,647)
|
|
(43,323)
|
Proceeds from sale of
equity investment and return of capital by an unconsolidated
investee
|
|
-
|
|
46,149
|
|
-
|
|
|
46,149
|
|
-
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
|
-
|
|
228
|
|
|
-
|
|
228
|
Proceeds from
business divestiture, net of de-consolidated cash
|
|
15,417
|
|
-
|
|
30,814
|
|
|
15,417
|
|
40,491
|
Proceeds from return
of capital of equity investments with fair value option
|
|
7,724
|
|
-
|
|
-
|
|
|
7,724
|
|
-
|
Cash paid for
investments with fair value option
|
|
-
|
|
-
|
|
(10,000)
|
|
|
-
|
|
(10,000)
|
Net cash provided by
(used in) investing activities
|
|
16,512
|
|
39,326
|
|
(6,337)
|
|
|
55,838
|
|
(30,808)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
loans and other debt
|
|
44,954
|
|
76,544
|
|
75,687
|
|
|
121,498
|
|
143,666
|
Repayment of bank
loans and other debt
|
|
(53,605)
|
|
(65,730)
|
|
(66,688)
|
|
|
(119,335)
|
|
(125,060)
|
Proceeds from
issuance of non-recourse residential financing, net of issuance
costs
|
|
-
|
|
-
|
|
43,476
|
|
|
-
|
|
65,731
|
Repayment of
non-recourse residential financing
|
|
-
|
|
-
|
|
(1,156)
|
|
|
-
|
|
(1,156)
|
Contributions from
noncontrolling interests and redeemable noncontrolling interests
attributable to residential projects
|
|
-
|
|
-
|
|
8,590
|
|
|
-
|
|
29,577
|
Distributions to
noncontrolling interests and redeemable noncontrolling interests
attributable to residential projects
|
|
-
|
|
-
|
|
(316)
|
|
|
-
|
|
(316)
|
Proceeds from
issuance of non-recourse power plant and commercial financing, net
of issuance costs
|
|
890
|
|
9,754
|
|
-
|
|
|
10,644
|
|
-
|
Payment for prior
business combination
|
|
-
|
|
-
|
|
(9,000)
|
|
|
-
|
|
(9,000)
|
Cash paid for
repurchase of convertible debt
|
|
-
|
|
(87,141)
|
|
-
|
|
|
(87,141)
|
|
-
|
Settlement of
contingent consideration arrangement, net of cash
received
|
|
1,811
|
|
423
|
|
-
|
|
|
2,234
|
|
(2,448)
|
Equity offering costs
paid
|
|
-
|
|
(928)
|
|
-
|
|
|
(928)
|
|
-
|
Purchases of stock
for tax withholding obligations on vested restricted
stock
|
|
(1,467)
|
|
(6,914)
|
|
(493)
|
|
|
(8,381)
|
|
(4,365)
|
Net cash (used in)
provided by financing activities
|
|
(7,417)
|
|
(73,992)
|
|
50,100
|
|
|
(81,409)
|
|
96,629
|
Effect of exchange
rate changes on cash, cash equivalents, restricted cash and
restricted cash equivalents
|
|
330
|
|
(216)
|
|
147
|
|
|
114
|
|
259
|
Net increase
(decrease) in cash, cash equivalents, restricted cash and
restricted cash equivalents
|
|
30,076
|
|
(214,375)
|
|
(37,151)
|
|
|
(184,299)
|
|
(164,011)
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents,
beginning of period
|
|
244,282
|
|
458,657
|
|
236,903
|
|
|
458,657
|
|
363,763
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents, end
of period1
|
|
$
274,358
|
|
$
244,282
|
|
$
199,752
|
|
|
$
274,358
|
|
$
199,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
transactions:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of solar power
systems sourced from existing inventory
|
|
$
-
|
|
$
-
|
|
$
4,767
|
|
|
$
-
|
|
$
21,173
|
Costs of solar power
systems funded by liabilities
|
|
$
1,716
|
|
$
1,184
|
|
$
4,529
|
|
|
$
1,716
|
|
$
4,529
|
Property, plant and
equipment acquisitions funded by liabilities
|
|
$
5,452
|
|
$
2,385
|
|
$
22,560
|
|
|
$
5,452
|
|
$
22,560
|
Contractual
obligations satisfied by inventory
|
|
$
-
|
|
$
975
|
|
$
-
|
|
|
$
-
|
|
$
-
|
Right-of-use assets
obtained in exchange of lease obligations2
|
|
$
963
|
|
$
12,461
|
|
$
13,280
|
|
|
$
13,424
|
|
$
94,805
|
Derecognition of
financing obligations upon business divestiture
|
|
$
-
|
|
$
-
|
|
$
590,884
|
|
|
$
-
|
|
$
590,884
|
Assumption of
liabilities in connection with business divestiture
|
|
$
9,085
|
|
$
-
|
|
$
-
|
|
|
$
9,085
|
|
$
-
|
Holdbacks in
connection with business divestiture
|
|
$
7,199
|
|
$
-
|
|
$
2,425
|
|
|
$
7,199
|
|
$
2,425
|
Aged supplier
financing balances reclassified from accounts payable to short-term
debt
|
|
$
18,933
|
|
$
5,000
|
|
$
-
|
|
|
$
23,933
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
1"Cash,
cash equivalents, restricted cash and restricted cash equivalents"
balance consisted of "cash and cash equivalents", "restricted cash
and cash equivalents, current portion" and "restricted cash and
cash equivalents, net of current portion" financial statement line
items on the condensed consolidated balance sheets for the
respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Amounts
for the six months ended June 30, 2019 include the transition
adjustment for the adoption of ASC 842 and new Right-of-Use ("ROU")
asset additions.
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), the company uses non-GAAP measures that are
adjusted for certain items from the most directly comparable GAAP
measures. The specific non-GAAP measures listed below are: revenue;
gross margin; net loss; net loss per diluted share; and adjusted
earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA"). Management believes that each of these
non-GAAP measures are useful to investors, enabling them to better
assess changes in each of these key elements of the company's
results of operations across different reporting periods on a
consistent basis, independent of certain items as described below.
Thus, each of these non-GAAP financial measures provide investors
with another method to assess the company's operating results in a
manner that is focused on its ongoing, core operating performance,
absent the effects of these items. Management uses these non-GAAP
measures internally to assess the business, its financial
performance, current and historical results, as well as for
strategic decision-making and forecasting future results. Many of
the analysts covering the company also use these non-GAAP measures
in their analysis. Given management's use of these non-GAAP
measures, the company believes these measures are important to
investors in understanding the company's operating results as seen
through the eyes of management. These non-GAAP measures are not
prepared in accordance with GAAP or intended to be a replacement
for GAAP financial data; and therefore, should be reviewed together
with the GAAP measures and are not intended to serve as a
substitute for results under GAAP, and may be different from
non-GAAP measures used by other companies.
Non-GAAP revenue includes adjustments relating to legacy utility
and power plant projects and construction revenue on solar service
contracts, each of which is described below. In addition to the
above adjustments, non-GAAP gross margin includes adjustments
relating to legacy sale-leaseback transactions, business process
improvement costs, gain/loss on sale and impairment of residential
lease assets, cost of above-market polysilicon, litigation,
stock-based compensation, amortization of intangible assets, and
business reorganization costs, each of which is described below. In
addition to the above adjustments, non-GAAP net loss and non-GAAP
net loss per diluted share are adjusted for adjustments relating to
mark to market gain on equity investments, gain on business
divestiture, impairment of property, plant, and equipment,
transaction-related costs, non-cash interest expense, restructuring
charges (credits), gain on convertible debt repurchased, tax effect
of these non-GAAP adjustments, each of which is described below. In
addition to the above adjustments, Adjusted EBITDA includes
adjustments relating to cash interest expense (net of interest
income), provision for income taxes, and depreciation.
Non-GAAP Adjustments Based on International Financial
Reporting Standards ("IFRS")
The company's non-GAAP results include adjustments under IFRS
that are consistent with the adjustments made in connection with
the company's internal reporting process as part of its status as a
consolidated subsidiary of Total SE, our controlling shareholder
and a foreign public registrant that reports under IFRS.
Differences between GAAP and IFRS reflected in the company's
non-GAAP results are further described below. In these situations,
management believes that IFRS enables investors to better evaluate
the company's performance, and assists in aligning the perspectives
of the management with those of Total SE.
- Legacy utility and power plant projects: The company included
adjustments related to the revenue recognition of certain utility
and power plant projects based on percentage-of-completion
accounting and, when relevant, the allocation of revenue and margin
to our project development efforts at the time of initial project
sale. Under IFRS, such projects were accounted for when the
customer obtains control of the promised goods or services which
generally results in earlier recognition of revenue and profit than
U.S. GAAP. Over the life of each project, cumulative revenue and
gross margin are eventually equivalent under both GAAP and IFRS;
however, revenue and gross margin is generally recognized earlier
under IFRS.
- Legacy sale-leaseback transactions: The company included
adjustments related to the revenue recognition on certain legacy
sale-leaseback transactions entered into before December 31, 2018, based on the net proceeds
received from the buyer-lessor. Under U.S. GAAP, these transactions
were accounted for under the financing method in accordance with
the applicable accounting guidance. Under such guidance, no revenue
or profit is recognized at the inception of the transaction, and
the net proceeds from the buyer-lessor are recorded as a financing
liability. Imputed interest is recorded on the liability equal to
our incremental borrowing rate adjusted solely to prevent negative
amortization. Under IFRS, such revenue and profit is recognized at
the time of sale to the buyer-lessor if certain criteria are met.
Upon adoption of IFRS 16, Leases, on December 31, 2018, IFRS is aligned with
GAAP.
- Mark-to-market gain in equity investments: The company
recognizes adjustments related to the fair value of equity
investments with readily determinable fair value based on the
changes in the stock price of these equity investments at every
reporting period. Under GAAP, mark-to-market gains and losses due
to changes in stock prices for these securities are recorded in
earnings while under IFRS, an election can be made to recognize
such gains and losses in other comprehensive income. Such an
election was made by Total SE. Further, we elected the Fair Value
Option ("FVO") for some of our equity method investments, and we
adjust the carrying value of those investments based on their fair
market value calculated periodically. Such option is not available
under IFRS, and equity method accounting is required for such
investments. Management believes that excluding these adjustments
on equity investments is consistent with our internal reporting
process as part of its status as a consolidated subsidiary of Total
SE and better reflects our ongoing results.
Other Non-GAAP Adjustments
- Business process improvement costs: During fiscal 2019, the
company initiated a project to improve its manufacturing and
related processes to improve gross margin in coming years and
engaged third party experts to consult on business process
improvements. Management believes it is appropriate to exclude
these consulting expenses from our non-GAAP results as they are
non-recurring in nature, and are not reflective of the company's
ongoing operating results.
- Gain/loss on sale and impairment of residential lease assets:
In fiscal 2018 and 2019, in an effort to deconsolidate all the
residential lease assets owned by us, the company sold membership
units representing a 49% membership interest in its residential
lease business and retained a 51% membership interest. The loss on
divestment, including adjustments to contingent consideration
shortly after the closure of the transaction, and the remaining
unsold residential lease assets impairment with its corresponding
depreciation savings are excluded from the company's non-GAAP
results as they are non-recurring in nature and not reflective of
ongoing operating results.
- Impairment of property, plant, and equipment: The Company
evaluates property, plant and equipment for impairment whenever
certain triggering events or changes in circumstances arise. This
evaluation includes consideration of technology obsolescence that
may indicate that the carrying value of such assets may not be
recoverable. In accordance with such evaluation, the company
recognizes a non-cash impairment charge when the asset group's fair
value is lower than its carrying value. Such impairment charge is
excluded from the company's non-GAAP results as it is non-recurring
in nature and not reflective of ongoing operating results. Any such
non-recurring impairment charge recorded by our equity method or
other unconsolidated investees is also excluded from our non-GAAP
results as it is not reflective of their ongoing operating
results.
- Construction revenue on solar services contracts: Upon adoption
of the new lease accounting guidance ("ASC 842") in the first
quarter of fiscal 2019, revenue and cost of revenue on solar
services contracts with residential customers are recognized
ratably over the term of those contracts, once the projects are
placed in service. For non-GAAP results, the company recognizes
revenue and cost of revenue upfront based on the expected cash
proceeds to align with the legacy lease accounting guidance.
Management believes it is appropriate to recognize revenue and cost
of revenue upfront based on total expected cash proceeds, as it
better reflects the company's ongoing results as such method aligns
revenue and costs incurred most accurately in the same period.
Starting in second quarter of fiscal 2020, we no longer have this
non-GAAP measure.
- Cost of above-market polysilicon: The company has entered into
multiple long-term, fixed-price supply agreements to purchase
polysilicon for periods of up to 10 years. The prices in select
legacy supply agreements, which incorporate a cash portion and a
non-cash portion attributable to the amortization of prepayments
made under the agreements, significantly exceed current market
prices. Additionally, in order to reduce inventory and improve
working capital, the company has periodically elected to sell
polysilicon inventory in the marketplace at prices below the
company's purchase price, thereby incurring a loss. Management
believes that it is appropriate to exclude the impact of its
above-market cost of polysilicon, including the effect of
above-market polysilicon on product costs, losses incurred on sales
of polysilicon to third parties, and inventory reserves and project
asset impairments from the company's non-GAAP results as they are
not reflective of ongoing operating results. Upon completion of the
Maxeon Solar Technologies Ltd. ("Maxeon") spin-off, the obligation
to purchase above-market polysilicon will be retained by Maxeon.
Given that these costs will not continue to be borne by the Company
following the spin, the Company will remove this expense from its
non-GAAP measure starting the third quarter of fiscal 2020.
- Stock-based compensation: Stock-based compensation relates
primarily to the company's equity incentive awards. Stock-based
compensation is a non-cash expense that is dependent on market
forces that are difficult to predict. Management believes that this
adjustment for stock-based compensation provides investors with a
basis to measure the company's core performance, including compared
with the performance of other companies, without the
period-to-period variability created by stock-based
compensation.
- Amortization of intangible assets: The company incurs
amortization of intangible assets as a result of acquisitions,
which includes patents, purchased technology, project pipeline
assets, and in-process research and development. Management
believes that it is appropriate to exclude these amortization
charges from the company's non-GAAP financial measures as they
arise from prior acquisitions, which are not reflective of ongoing
operating results.
- Gain on business divestiture: In second quarter of fiscal 2020,
the company sold its Operations and Maintenance ("O&M")
contracts business to a third-party buyer. Similarly, in fiscal
2019, the company sold all of its membership interests in certain
subsidiaries that own leasehold interests in projects subject to
sale-leaseback financing arrangements. In connection with these
divestitures, the company recognized gain within its income
statement in the period in which the sale was completed. The
company believe that it is appropriate to exclude this gain from
its segment results as it is not reflective of ongoing operating
results.
- Litigation: The company may be involved in various litigation,
claims and proceedings that result in payments or recoveries from
such proceedings. The company excludes any gains or losses on such
litigation recoveries or payments from the non-GAAP results as it
is not reflective of ongoing operating results.
- Transaction-related costs: In connection with material
non-recurring transactions such as acquisition or divestiture of a
business, the company incurred transaction costs including legal
and accounting fees. Management believes that it is appropriate to
exclude these costs from the company's non-GAAP results as it is
not reflective of ongoing operating results.
- Business reorganization costs: In connection with the
reorganization of our business into an upstream and downstream, and
subsequent announcement of the separation transaction to separate
the Company into two independent, and publicly traded companies, we
incurred and expect to continue to incur in upcoming quarters,
non-recurring charges on third-party legal and consulting expenses
to close the separation transaction. The company believes that it
is appropriate to exclude these from company's non-GAAP results as
it is not reflective of ongoing operating results.
- Non-cash interest expense: The company incurs non-cash interest
expense related to the amortization of items such as original
issuance discounts on its debt. The company excludes non-cash
interest expense because the expense does not reflect its financial
results in the period incurred. Management believes that this
adjustment for non-cash interest expense provides investors with a
basis to evaluate the company's performance, including compared
with the performance of other companies, without non-cash interest
expense.
- Restructuring charges (credits): The company incurs
restructuring expenses related to reorganization plans aimed
towards realigning resources consistent with the company's global
strategy and improving its overall operating efficiency and cost
structure. Although the company has engaged in restructuring
activities in the past, each has been a discrete event based on a
unique set of business objectives. The company believes that it is
appropriate to exclude these from company's non-GAAP results as it
is not reflective of ongoing operating results.
- Gain on convertible debt repurchased: In connection with the
early repurchase of a portion of our 0.875% Convertible debentures
due June 1, 2021, we recognized a
gain, represented by the difference between the book value of the
convertible debentures, net of the remaining unamortized discount
prior to repurchase and the reacquisition price of the convertible
notes upon repurchase. The company believes that it is appropriate
to exclude these from our non-GAAP results as it is not reflective
of ongoing operating results.
- Tax effect: This amount is used to present each of the
adjustments described above on an after-tax basis in connection
with the presentation of non-GAAP net income (loss) and non-GAAP
net income (loss) per diluted share. The company's non-GAAP tax
amount is based on estimated cash tax expense and reserves. The
company forecasts its annual cash tax liability and allocates the
tax to each quarter in a manner generally consistent with its GAAP
methodology. This approach is designed to enhance investors'
ability to understand the impact of the company's tax expense on
its current operations, provide improved modeling accuracy, and
substantially reduce fluctuations caused by GAAP to non-GAAP
adjustments, which may not reflect actual cash tax expense.
- Adjusted EBITDA adjustments: When calculating Adjusted EBITDA,
in addition to adjustments described above, the company excludes
the impact of the following items during the period:
-
- Cash interest expense, net of interest income
- Provision for income taxes
- Depreciation
For more information about these non-GAAP financial measures,
please see the tables captioned "Reconciliations of GAAP Measures
to Non-GAAP Measures" set forth at the end of this release, which
should be read together with the preceding financial statements
prepared in accordance with GAAP.
SUNPOWER
CORPORATION
|
RECONCILIATIONS OF
GAAP MEASURES TO NON-GAAP MEASURES
|
(In thousands,
except percentages and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP
revenue
|
|
$
352,914
|
|
$
449,190
|
|
$
436,281
|
|
$
802,104
|
|
$
784,506
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(207)
|
|
(23)
|
|
(207)
|
|
(194)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Construction revenue
on solar services contracts
|
|
-
|
|
5,392
|
|
45,614
|
|
5,392
|
|
109,119
|
Non-GAAP
revenue
|
|
$
352,914
|
|
$
454,375
|
|
$
481,872
|
|
$
807,289
|
|
$
893,431
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Gross Profit (Loss) / Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP gross profit
(loss)
|
|
$
21,598
|
|
$
37,448
|
|
$
19,800
|
|
$
59,046
|
|
$
(17,485)
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(34)
|
|
884
|
|
(34)
|
|
1,000
|
Legacy sale-leaseback
transactions
|
|
-
|
|
20
|
|
(3,684)
|
|
20
|
|
(4,507)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
793
|
|
2,464
|
|
-
|
|
3,257
|
|
-
|
Construction revenue
on solar service contracts
|
|
-
|
|
4,735
|
|
5,506
|
|
4,735
|
|
16,892
|
Gain on sale and
impairment of residential lease assets
|
|
(458)
|
|
(448)
|
|
(632)
|
|
(906)
|
|
(757)
|
Cost of above-market
polysilicon
|
|
9,569
|
|
10,043
|
|
25,950
|
|
19,612
|
|
75,378
|
Litigation
|
|
-
|
|
(163)
|
|
-
|
|
(163)
|
|
-
|
Stock-based
compensation expense
|
|
1,175
|
|
1,109
|
|
1,133
|
|
2,284
|
|
1,301
|
Amortization of
intangible assets
|
|
1,783
|
|
1,785
|
|
1,783
|
|
3,568
|
|
3,569
|
Business
reorganization costs
|
|
(7)
|
|
5
|
|
-
|
|
(2)
|
|
-
|
Non-GAAP gross
profit
|
|
$
34,453
|
|
$
56,964
|
|
$
50,740
|
|
$
91,417
|
|
$
75,391
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
(%)
|
|
6.1%
|
|
8.3%
|
|
4.5%
|
|
7.4%
|
|
-2.2%
|
Non-GAAP gross margin
(%)
|
|
9.8%
|
|
12.5%
|
|
10.5%
|
|
11.3%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Net
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net income
(loss) attributable to stockholders
|
|
$
19,378
|
|
$
(1,431)
|
|
$
121,459
|
|
$
17,947
|
|
$
31,735
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(34)
|
|
884
|
|
(34)
|
|
1,000
|
Legacy sale-leaseback
transactions
|
|
-
|
|
20
|
|
1,025
|
|
20
|
|
5,936
|
Mark-to-market gain
on equity investments
|
|
(71,060)
|
|
(47,871)
|
|
(67,500)
|
|
(118,931)
|
|
(100,500)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Business process
improvements costs
|
|
793
|
|
2,464
|
|
-
|
|
3,257
|
|
-
|
Construction revenue
on solar services contracts
|
|
-
|
|
4,735
|
|
(6,398)
|
|
4,735
|
|
(10,138)
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
(317)
|
|
(722)
|
|
15,554
|
|
(1,039)
|
|
23,867
|
Cost of above-market
polysilicon
|
|
9,569
|
|
10,043
|
|
25,950
|
|
19,612
|
|
75,378
|
Litigation
|
|
-
|
|
321
|
|
-
|
|
321
|
|
-
|
Stock-based
compensation expense
|
|
5,879
|
|
6,867
|
|
6,270
|
|
12,746
|
|
11,936
|
Amortization of
intangible assets
|
|
1,784
|
|
1,786
|
|
1,783
|
|
3,570
|
|
3,569
|
Gain on business
divestiture
|
|
(10,529)
|
|
-
|
|
(137,286)
|
|
(10,529)
|
|
(143,400)
|
Transaction-related
costs
|
|
2,382
|
|
481
|
|
1,173
|
|
2,863
|
|
2,595
|
Business
reorganization costs
|
|
2,861
|
|
6,193
|
|
4,156
|
|
9,054
|
|
6,805
|
Non-cash interest
expense
|
|
-
|
|
-
|
|
10
|
|
-
|
|
20
|
Restructuring
charges
|
|
1,259
|
|
1,576
|
|
2,453
|
|
2,835
|
|
1,788
|
Gain on convertible
debt repurchased
|
|
-
|
|
(2,956)
|
|
-
|
|
(2,956)
|
|
-
|
Tax effect
|
|
822
|
|
1,247
|
|
(669)
|
|
2,068
|
|
849
|
Non-GAAP net loss
attributable to stockholders
|
|
$
(37,179)
|
|
$
(17,281)
|
|
$
(31,136)
|
|
$
(54,461)
|
|
$
(88,560)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Net
income (loss) per diluted share:
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income (loss) per
diluted share
|
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) available to common stockholders1
|
|
$
19,378
|
|
$
(1,431)
|
|
$
121,459
|
|
$
17,947
|
|
$
31,735
|
Add: Interest expense on
4.00% debenture due 2023, net of tax
|
|
-
|
|
-
|
|
3,358
|
|
-
|
|
-
|
Add: Interest expense on
0.875% debenture due 2021, net of tax
|
|
535
|
|
-
|
|
691
|
|
-
|
|
-
|
GAAP net income (loss) available to common
stockholders1
|
|
19,913
|
|
(1,431)
|
|
125,508
|
|
17,947
|
|
$
31,735
|
Non-GAAP net loss
available to common stockholders1
|
|
$
(37,179)
|
|
$
(17,281)
|
|
$
(31,136)
|
|
$
(54,461)
|
|
$
(88,560)
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average
shares
|
|
170,003
|
|
168,822
|
|
142,471
|
|
169,413
|
|
142,095
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
Restricted stock
units
|
|
1,765
|
|
-
|
|
2,241
|
|
1,558
|
|
967
|
0.875% debentures due
2021
|
|
6,350
|
|
-
|
|
8,203
|
|
-
|
|
-
|
4.00% debentures due
2023
|
|
-
|
|
-
|
|
13,922
|
|
-
|
|
-
|
GAAP dilutive
weighted-average common shares:
|
|
178,118
|
|
168,822
|
|
166,837
|
|
170,971
|
|
143,062
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted-average shares
|
|
170,003
|
|
168,822
|
|
142,471
|
|
169,413
|
|
142,095
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP dilutive
weighted-average shares1
|
|
170,003
|
|
168,822
|
|
142,471
|
|
169,413
|
|
142,095
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) per diluted share
|
|
$
0.11
|
|
$
(0.01)
|
|
$
0.75
|
|
$
0.10
|
|
$
0.22
|
Non-GAAP net loss per
diluted share
|
|
$
(0.22)
|
|
$
(0.10)
|
|
$
(0.22)
|
|
$
(0.32)
|
|
$
(0.62)
|
|
|
|
|
|
|
|
|
|
|
|
1In
accordance with the if-converted method, net income (loss)
available to common stockholders excludes interest expense related
to the 0.875% and 4.0% debentures if the debentures are considered
converted in the calculation of net income (loss) per diluted
share. If the conversion option for a debenture is not in the
money for the relevant period, the potential conversion of the
debenture under the if-converted method is excluded from the
calculation of non-GAAP net income (loss) per diluted
share.
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 30,
|
|
Jun. 28,
|
|
Jun. 30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net income
(loss) attributable to stockholders
|
|
$
19,378
|
|
$
(1,431)
|
|
$
121,459
|
|
$
17,947
|
|
$
31,735
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(34)
|
|
884
|
|
(34)
|
|
1,000
|
Legacy sale-leaseback
transactions
|
|
-
|
|
20
|
|
1,025
|
|
20
|
|
5,936
|
Mark-to-market gain
on equity investment
|
|
(71,060)
|
|
(47,871)
|
|
(67,500)
|
|
(118,931)
|
|
(100,500)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
793
|
|
2,464
|
|
-
|
|
3,257
|
|
-
|
Construction revenue
on solar services contracts
|
|
-
|
|
4,735
|
|
(6,398)
|
|
4,735
|
|
(10,138)
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
(317)
|
|
(722)
|
|
15,554
|
|
(1,039)
|
|
23,867
|
Cost of above-market
polysilicon
|
|
9,569
|
|
10,043
|
|
25,950
|
|
19,612
|
|
75,378
|
Litigation
|
|
-
|
|
321
|
|
-
|
|
321
|
|
-
|
Stock-based
compensation expense
|
|
5,879
|
|
6,867
|
|
6,270
|
|
12,746
|
|
11,936
|
Amortization of
intangible assets
|
|
1,784
|
|
1,786
|
|
1,783
|
|
3,570
|
|
3,569
|
Gain on business
divestiture
|
|
(10,529)
|
|
-
|
|
(137,286)
|
|
(10,529)
|
|
(143,400)
|
Transaction-related
costs
|
|
2,382
|
|
481
|
|
1,173
|
|
2,863
|
|
2,595
|
Business
reorganization costs
|
|
2,861
|
|
6,193
|
|
4,156
|
|
9,054
|
|
6,805
|
Non-cash interest
expense
|
|
-
|
|
-
|
|
10
|
|
-
|
|
20
|
Restructuring charges
(credits)
|
|
1,259
|
|
1,576
|
|
2,453
|
|
2,835
|
|
1,788
|
Gain on convertible
debt repurchased
|
|
-
|
|
(2,956)
|
|
-
|
|
(2,956)
|
|
-
|
Cash interest
expense, net of interest income
|
|
10,030
|
|
10,133
|
|
11,148
|
|
20,163
|
|
21,354
|
Provision for income
taxes
|
|
3,068
|
|
1,868
|
|
6,068
|
|
4,936
|
|
11,865
|
Depreciation
|
|
15,954
|
|
15,896
|
|
21,286
|
|
31,851
|
|
40,467
|
Adjusted
EBITDA
|
|
$
(8,949)
|
|
$
9,369
|
|
$
8,035
|
|
$
421
|
|
$
(15,723)
|
Q3 2020
GUIDANCE
|
|
(in thousands
except percentages)
|
Q3
2020
|
Revenue (GAAP and
non-GAAP)
|
$360,000-$400,000
|
Gross margin
(GAAP)
|
0% - 5%
|
Gross margin
(non-GAAP)1
|
0% - 6%
|
Net loss
(GAAP)
|
$(110,000)-$(95,000)
|
Adjusted
EBITDA2
|
$(35,000)-$(20,000)
|
- Estimated non-GAAP amounts above for Q3 2020 include net
adjustments that increase gross margin by approximately
$1 million related to stock-based
compensation expense and $1 million
related to amortization of intangible assets.
- Estimated Adjusted EBITDA amounts above for Q3 2020 include net
adjustments that decrease net loss by approximately $21 million related to income taxes, $20 million in business reorganization costs,
$15 million related to depreciation,
$11 million related to interest
expense, $6 million related to
stock-based compensation expense, $1
million of restructuring charges, and $1 million related to amortization of intangible
assets.
SUPPLEMENTAL DATA
(In thousands,
except percentages)
The following supplemental data represent the adjustments that
are included or excluded from SunPower's non-GAAP revenue, gross
profit/margin, net income (loss) and net income (loss) per diluted
share measures for each period presented in the Consolidated
Statements of Operations contained herein.
|
|
SUNPOWER
CORPORATION
|
|
|
|
|
(In thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28,
2020
|
|
|
|
|
Revenue
|
|
Gross profit /
margin
|
|
Operating
expenses
|
|
Other income
(expense), net
|
|
Provision for
income taxes
|
|
Net income
(loss) attributable to stockholders
|
|
|
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
|
Research
and
development
|
|
Sales,
general
and administrative
|
|
Restructuring
charges
|
|
(Gain)/loss on
sale and impairment of residential lease assets
|
|
Gain on
business divestiture
|
|
|
|
|
|
GAAP
|
|
$
217,885
|
|
$
170,435
|
|
$
(35,406)
|
|
$
38,627
|
|
17.7%
|
|
$
(16,426)
|
|
-9.6%
|
|
$
(603)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
19,378
|
|
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market gain
on equity investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(71,060)
|
|
-
|
|
(71,060)
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
-
|
|
-
|
|
-
|
|
(123)
|
|
|
|
916
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
793
|
|
|
(Gain)/loss on sale
and impairment of residential lease assets
|
|
-
|
|
-
|
|
-
|
|
(458)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
141
|
|
-
|
|
-
|
|
-
|
|
(317)
|
|
|
Cost of above-market
polysilicon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
8,338
|
|
|
|
1,231
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9,569
|
|
|
Stock-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
471
|
|
|
|
704
|
|
|
|
-
|
|
|
631
|
|
4,073
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,879
|
|
|
Amortization of
intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
1,783
|
|
|
|
-
|
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,784
|
|
|
Gain on business
divestiture
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,458)
|
|
(71)
|
|
-
|
|
(10,529)
|
|
|
Business
reorganization costs
|
|
-
|
|
-
|
|
-
|
|
9
|
|
|
|
(16)
|
|
|
|
-
|
|
|
182
|
|
2,686
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,861
|
|
|
Transaction-related
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
2,382
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,382
|
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
1,259
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,259
|
|
|
Tax effect
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
822
|
|
822
|
|
|
Non-GAAP
|
|
$
217,885
|
|
$
170,435
|
|
$
(35,406)
|
|
$
38,526
|
|
17.7%
|
|
$
(4,701)
|
|
-2.8%
|
|
$
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(37,179)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 29,
2020
|
|
|
|
|
Revenue
|
|
Gross profit /
margin
|
|
Operating
expenses
|
|
Other income
(expense), net
|
|
Provision for
income taxes
|
|
Net income
(loss) attributable to stockholders
|
|
|
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
|
Research
and
development
|
|
Sales,
general
and administrative
|
|
Restructuring
charges
|
|
(Gain)/loss on
sale and impairment of residential lease assets
|
|
Gain on
business divestiture
|
|
|
|
|
|
GAAP
|
|
$
289,869
|
|
$
248,196
|
|
$
(88,875)
|
|
$
30,408
|
|
10.5%
|
|
$
(8,933)
|
|
-3.6%
|
|
$
15,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(1,431)
|
|
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(207)
|
|
-
|
|
-
|
|
|
|
(34)
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(34)
|
|
|
Legacy sale-leaseback
transactions
|
|
-
|
|
-
|
|
-
|
|
20
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
|
Mark-to-market gain
on equity investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(47,871)
|
|
-
|
|
(47,871)
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
2,464
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,464
|
|
|
(Gain)/loss on sale
and impairment of residential lease assets
|
|
-
|
|
-
|
|
-
|
|
(448)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
(274)
|
|
-
|
|
-
|
|
-
|
|
(722)
|
|
|
Construction revenue
on solar services contracts
|
|
5,392
|
|
-
|
|
-
|
|
4,735
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,735
|
|
|
Cost of above-market
polysilicon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
17,253
|
|
|
|
(7,210)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,043
|
|
|
Litigation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
(163)
|
|
|
|
-
|
|
|
-
|
|
485
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
321
|
|
|
Stock-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
559
|
|
|
|
551
|
|
|
|
-
|
|
|
760
|
|
4,997
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,867
|
|
|
Amortization of
intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
1,785
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,785
|
|
|
Business
reorganization costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
|
513
|
|
5,676
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,194
|
|
|
Transaction-related
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
481
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
481
|
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
1,576
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,576
|
|
|
Gain on convertible
debt repurchased
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,956)
|
|
-
|
|
(2,956)
|
|
|
Tax effect
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,247
|
|
1,247
|
|
|
Non-GAAP
|
|
$
295,261
|
|
$
247,989
|
|
$
(88,875)
|
|
$
35,274
|
|
11.9%
|
|
$
12,927
|
|
5.2%
|
|
$
8,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(17,281)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2019
|
|
|
|
|
Revenue
|
|
Gross profit /
margin
|
|
Operating
expenses
|
|
Other income
(expense), net
|
|
Provision for
income taxes
|
|
Gain (Loss)
attributable to non-controlling interests
|
|
Net income
(loss) attributable to stockholders
|
|
|
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
|
Research
and
development
|
|
Sales,
general
and administrative
|
|
Restructuring
charges
|
|
Loss on sale
and impairment of residential lease assets
|
|
Gain on
business divestiture
|
|
|
|
|
|
|
GAAP
|
|
$
211,726
|
|
$
314,971
|
|
$
(90,416)
|
|
$
22,464
|
|
10.6%
|
|
$
(2,746)
|
|
-0.9%
|
|
$
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
121,459
|
|
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(23)
|
|
-
|
|
-
|
|
|
|
884
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
884
|
|
|
Legacy sale-leaseback
transactions
|
|
-
|
|
-
|
|
-
|
|
(3,684)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,709
|
|
-
|
|
-
|
|
1,025
|
|
|
Mark-to-market gain
on equity investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67,500)
|
|
-
|
|
-
|
|
(67,500)
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain)/loss on sale
and impairment of residential lease assets
|
|
-
|
|
-
|
|
-
|
|
(632)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
16,728
|
|
-
|
|
-
|
|
-
|
|
(542)
|
|
15,554
|
|
|
Construction revenue
on solar services contracts
|
|
45,614
|
|
-
|
|
-
|
|
5,506
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(11,904)
|
|
(6,398)
|
|
|
Cost of above-market
polysilicon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
23,875
|
|
|
|
2,075
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
25,950
|
|
|
Stock-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
460
|
|
|
|
673
|
|
|
|
-
|
|
|
879
|
|
4,258
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,270
|
|
|
Amortization of
intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
1,783
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,783
|
|
|
Gain on business
divestiture
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(137,286)
|
|
-
|
|
-
|
|
-
|
|
(137,286)
|
|
|
Business
reorganization costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
777
|
|
3,379
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,156
|
|
|
Transaction-related
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
1,173
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,173
|
|
|
Non-cash interest
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10
|
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
2,453
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,453
|
|
|
Tax effect
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(669)
|
|
-
|
|
(669)
|
|
|
Non-GAAP
|
|
$
257,340
|
|
$
314,948
|
|
$
(90,416)
|
|
$
24,114
|
|
9.4%
|
|
$
24,469
|
|
7.8%
|
|
$
2,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(31,136)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28,
2020
|
|
|
|
|
|
|
Revenue
|
|
Gross profit /
margin
|
|
Operating
expenses
|
|
Other income
(expense), net
|
|
Provision
for income taxes
|
|
Net income
(loss) attributable to stockholders
|
|
|
|
|
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
|
Research
and
development
|
|
Sales,
general
and administrative
|
|
Restructuring
charges
|
|
(Gain)/loss on
sale and impairment of residential lease assets
|
|
Gain on
business divestiture
|
|
|
|
|
|
|
|
GAAP
|
|
$
507,754
|
|
$
418,631
|
|
$
(124,281)
|
|
$
69,034
|
|
13.6%
|
|
$
(25,359)
|
|
20.4%
|
|
$
15,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
17,947
|
|
|
|
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8point3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(207)
|
|
-
|
|
-
|
|
|
|
(34)
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(34)
|
|
|
|
|
Legacy sale-leaseback
transactions
|
|
-
|
|
-
|
|
-
|
|
20
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
|
|
|
Mark-to-market gain
on equity investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(118,931)
|
|
-
|
|
(118,931)
|
|
|
|
|
Other
adjustments:
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Business process
improvement costs
|
|
-
|
|
-
|
|
-
|
|
(123)
|
|
|
|
3,380
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,257
|
|
|
|
|
(Gain)/loss on sale
and impairment of residential lease assets
|
|
-
|
|
-
|
|
-
|
|
(906)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
(133)
|
|
-
|
|
-
|
|
-
|
|
(1,039)
|
|
|
|
|
Construction revenue
on solar services contracts
|
|
5,392
|
|
-
|
|
-
|
|
4,735
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,735
|
|
|
|
|
Cost of above-market
polysilicon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
25,591
|
|
|
|
(5,979)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
19,612
|
|
|
|
|
Litigation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
(163)
|
|
|
|
-
|
|
|
-
|
|
485
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
321
|
|
|
|
|
Stock-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
1,030
|
|
|
|
1,255
|
|
|
|
-
|
|
|
1,391
|
|
9,070
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,746
|
|
|
|
|
Amortization of
intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
3,568
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,568
|
|
|
|
|
Gain on business
divestiture
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,458)
|
|
(71)
|
|
-
|
|
(10,529)
|
|
|
|
|
Business
reorganization costs
|
|
-
|
|
-
|
|
-
|
|
9
|
|
|
|
(12)
|
|
|
|
-
|
|
|
695
|
|
8,362
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9,055
|
|
|
|
|
Transaction-related
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
2,863
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,863
|
|
|
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
2,835
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,835
|
|
|
|
|
Gain on convertible
debt repurchased
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,956)
|
|
-
|
|
(2,956)
|
|
|
|
|
Tax effect
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,069
|
|
2,069
|
|
|
|
|
Non-GAAP
|
|
$
513,146
|
|
$
418,424
|
|
$
(124,281)
|
|
$
73,799
|
|
14.4%
|
|
$
8,226
|
|
2.0%
|
|
$
9,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(54,461)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2019
|
|
|
|
|
Revenue
|
|
Gross profit /
margin
|
|
Operating
expenses
|
|
Other income
(expense), net
|
|
Provision
for income taxes
|
|
Gain (Loss)
attributable to non-controlling interests
|
|
Net income
(loss) attributable to stockholders
|
|
|
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
SunPower Energy
Services
|
|
SunPower
Technologies
|
|
Intersegment
eliminations
|
|
|
Research
and
development
|
|
Sales,
general
and administrative
|
|
Restructuring
charges
|
|
(Gain)/loss on
sale and impairment of residential lease assets
|
|
Gain on
business divestiture
|
|
|
|
|
|
|
GAAP
|
|
$
389,947
|
|
$
545,775
|
|
$
(151,216)
|
|
$
29,607
|
|
7.6%
|
|
$
(54,810)
|
|
-10.0%
|
|
$
7,718
|
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
31,735
|
|
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy utility and
power plant projects
|
|
-
|
|
(194)
|
|
-
|
|
125
|
|
|
|
875
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,000
|
|
|
Legacy sale-leaseback
transactions
|
|
-
|
|
-
|
|
-
|
|
(4,508)
|
|
|
|
1
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,443
|
|
-
|
|
-
|
|
5,936
|
|
|
Mark-to-market gain
on equity investments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(100,500)
|
|
-
|
|
-
|
|
(100,500)
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(Gain)/loss on sale
and impairment of residential lease assets
|
|
-
|
|
-
|
|
-
|
|
(757)
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
25,954
|
|
-
|
|
-
|
|
-
|
|
(1,330)
|
|
23,867
|
|
|
Construction revenue
on solar services contracts
|
|
109,119
|
|
-
|
|
-
|
|
16,892
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(27,030)
|
|
(10,138)
|
|
|
Cost of above-market
polysilicon
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
73,303
|
|
|
|
2,075
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
75,378
|
|
|
Stock-based
compensation expense
|
|
-
|
|
-
|
|
-
|
|
628
|
|
|
|
673
|
|
|
|
-
|
|
|
1,472
|
|
9,163
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11,936
|
|
|
Amortization of
intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
3,569
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,569
|
|
|
Gain on business
divestiture
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(143,400)
|
|
-
|
|
-
|
|
-
|
|
(143,400)
|
|
|
Business
reorganization costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
777
|
|
6,028
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,805
|
|
|
Transaction-related
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
2,595
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,595
|
|
|
Non-cash interest
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
1,788
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,788
|
|
|
Tax effect
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
849
|
|
-
|
|
849
|
|
|
Non-GAAP
|
|
$
499,066
|
|
$
545,581
|
|
$
(151,216)
|
|
$
41,987
|
|
8.4%
|
|
$
23,611
|
|
4.3%
|
|
$
9,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(88,560)
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sunpower-reports-second-quarter-2020-results-301106949.html
SOURCE SunPower Corp.