First Solar, Inc. Announces Third Quarter 2018 Financial Results
October 25 2018 - 4:02PM
First Solar, Inc. (Nasdaq: FSLR) today announced financial results
for the third quarter of 2018. Net sales for the third quarter were
$676 million, an increase of $367 million from the prior quarter
primarily due to ongoing construction activities at the California
Flats project and the sale of the Willow Springs and Manildra
projects.
The Company reported third quarter earnings per
share of $0.54, compared to a loss per share of $(0.46) in the
second quarter. Net income increased compared to the prior quarter
primarily due to improved net sales, the mix of higher gross profit
projects, and lower operating expenses.
Cash and marketable securities at the end of the
third quarter decreased to $2.7 billion from $3.1 billion at the
end of the second quarter. The decrease primarily resulted from
ongoing capital investments in Series 6 manufacturing capacity,
ongoing factory ramp activities and the timing of cash receipts
from certain systems project sales.
“We had good execution in the third quarter as
we closed the sales of certain key projects and delivered solid
financial results,” said Mark Widmar, CEO of First Solar. “In
addition, with the start of Series 6 production at our Vietnam
factory we now have three locations manufacturing our most advanced
product. Demand for Series 6 continues to be resilient as
demonstrated by bookings of 1.1GWDC since our prior earnings call.
This brings our total contracted volume to 11.3GWDC and provides us
with a strong competitive advantage as we move forward.”
Guidance ranges for 2018 have been updated as a
result of lower expected module sales, higher manufacturing ramp
costs and the revised expectation that the Ishikawa project in
Japan will now be sold in 2019. The complete update to 2018
guidance is as follows:
2018 GAAP Guidance |
Prior |
Current |
Net Sales |
$2.5B to $2.6B |
$2.3B to $2.4B |
Gross Margin % (1) |
20.5% to 21.5% |
18.5% to 19.5% |
Operating Expenses (2) |
$390M to $400M |
$345M to $355M |
Operating Income |
$120M to $160M |
$90M to $110M |
Earnings per Share |
$1.50 to $1.90 |
$1.40 to $1.60 |
Net Cash Balance (3) |
$2.2B to $2.4B |
$2.0B to $2.2B |
Operating Cash Flow |
$100M to $200M |
$(100M) to $0M |
Capital Expenditures |
$800M to $900M |
Unchanged |
Shipments |
2.8GW to 2.9GW |
2.6GW to 2.7GW |
|
|
|
____________________
- Includes approximately $100 million of ramp costs
- Includes approximately $90 million of production start-up
expense
- Defined as cash and marketable securities less expected debt at
the end of 2018
First Solar has scheduled a conference call for
today, October 25, 2018 at 4:30 p.m. ET to discuss this
announcement. A live webcast of this conference call is available
at investor.firstsolar.com. 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 until Thursday,
November 1, 2018 at 7:30 p.m. ET and can be accessed by dialing
888-203-1112 if you are calling from within the United States or
719-457-0820 if you are calling from outside the United States and
entering the replay pass code 2947631. 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 2018; the transition to Series 6 module
manufacturing in 2018; and our business and financial objectives
for 2018. 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; our
ability to execute on our long-term strategic plans; our ability to
execute on our solar module technology and cost reduction roadmaps;
interest rate fluctuations and both our and our customers’ ability
to secure financing; 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;
future collection and recycling costs for solar modules covered by
our module collection and recycling program; our ability to protect
our intellectual property; our ability to prevent and/or minimize
the impact of cyber-attacks or other breaches of our information
systems; our continued investment in research and development; the
supply and price of components and raw materials, including CdTe;
our ability to attract and retain key executive officers and
associates; and the matters discussed under the captions “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Conditions and Results of Operations” of our most recent Annual
Report on Form 10-K and our subsequently filed Quarterly Reports on
Form 10-Q, as supplemented by our other filings with the Securities
and Exchange Commission.
Contacts
First Solar InvestorsSteve
Haymore602-414-9315stephen.haymore@firstsolar.com
First Solar MediaSteve
Krum602-427-3359steve.krum@firstsolar.com
FIRST SOLAR, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except share
data)(Unaudited)
|
|
September 30,
2018 |
|
December 31,
2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,434,883 |
|
|
$ |
2,268,534 |
|
Marketable securities |
|
1,295,049 |
|
|
720,379 |
|
Accounts receivable trade, net |
|
141,699 |
|
|
211,797 |
|
Accounts receivable, unbilled and retainage |
|
421,134 |
|
|
174,608 |
|
Inventories |
|
296,038 |
|
|
172,370 |
|
Balance of systems parts |
|
51,448 |
|
|
28,840 |
|
Project assets |
|
28,978 |
|
|
77,931 |
|
Notes receivable, affiliate |
|
21,308 |
|
|
20,411 |
|
Prepaid expenses and other current assets |
|
195,552 |
|
|
157,902 |
|
Total current assets |
|
3,886,089 |
|
|
3,832,772 |
|
Property, plant and equipment, net |
|
1,671,129 |
|
|
1,154,537 |
|
PV
solar power systems, net |
|
310,493 |
|
|
417,108 |
|
Project assets |
|
463,624 |
|
|
424,786 |
|
Deferred tax assets, net |
|
108,636 |
|
|
51,417 |
|
Restricted cash and investments |
|
341,125 |
|
|
424,783 |
|
Equity method investments |
|
3,192 |
|
|
217,230 |
|
Goodwill |
|
14,462 |
|
|
14,462 |
|
Intangibles assets, net |
|
74,585 |
|
|
80,227 |
|
Inventories |
|
124,266 |
|
|
113,277 |
|
Note receivable, affiliate |
|
— |
|
|
48,370 |
|
Other assets |
|
96,954 |
|
|
85,532 |
|
Total assets |
|
$ |
7,094,555 |
|
|
$ |
6,864,501 |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
154,602 |
|
|
$ |
120,220 |
|
Income taxes payable |
|
49,941 |
|
|
19,581 |
|
Accrued expenses |
|
433,117 |
|
|
366,827 |
|
Current portion of long-term debt |
|
2,618 |
|
|
13,075 |
|
Deferred revenue |
|
215,900 |
|
|
81,816 |
|
Other current liabilities |
|
12,006 |
|
|
48,757 |
|
Total current liabilities |
|
868,184 |
|
|
650,276 |
|
Accrued solar module collection and recycling liability |
|
133,965 |
|
|
166,609 |
|
Long-term debt |
|
463,485 |
|
|
380,465 |
|
Other liabilities |
|
457,964 |
|
|
568,454 |
|
Total liabilities |
|
1,923,598 |
|
|
1,765,804 |
|
Commitments and contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.001 par value per share;
500,000,000 shares authorized; 104,814,322 and 104,468,460 shares
issued and outstanding at September 30, 2018 and December 31, 2017,
respectively |
|
105 |
|
|
104 |
|
Additional paid-in capital |
|
2,816,585 |
|
|
2,799,107 |
|
Accumulated earnings |
|
2,389,438 |
|
|
2,297,227 |
|
Accumulated other comprehensive (loss) income |
|
(35,171 |
) |
|
2,259 |
|
Total stockholders’ equity |
|
5,170,957 |
|
|
5,098,697 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,094,555 |
|
|
$ |
6,864,501 |
|
|
|
|
|
|
|
|
|
|
FIRST SOLAR, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
amounts)(Unaudited)
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Net sales |
|
$ |
676,220 |
|
|
$ |
309,318 |
|
|
$ |
1,087,026 |
|
|
$ |
1,552,803 |
|
|
$ |
2,602,143 |
|
Cost of sales |
|
547,093 |
|
|
317,376 |
|
|
795,226 |
|
|
1,258,936 |
|
|
2,115,266 |
|
Gross profit (loss) |
|
129,127 |
|
|
(8,058 |
) |
|
291,800 |
|
|
293,867 |
|
|
486,877 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
33,539 |
|
|
50,854 |
|
|
50,546 |
|
|
125,519 |
|
|
147,702 |
|
Research and development |
|
22,390 |
|
|
20,370 |
|
|
20,850 |
|
|
63,084 |
|
|
64,990 |
|
Production start-up |
|
14,723 |
|
|
24,352 |
|
|
12,624 |
|
|
76,159 |
|
|
22,155 |
|
Restructuring and asset impairments |
|
— |
|
|
— |
|
|
791 |
|
|
— |
|
|
39,108 |
|
Total operating expenses |
|
70,652 |
|
|
95,576 |
|
|
84,811 |
|
|
264,762 |
|
|
273,955 |
|
Operating income (loss) |
|
58,475 |
|
|
(103,634 |
) |
|
206,989 |
|
|
29,105 |
|
|
212,922 |
|
Foreign currency (loss) gain, net |
|
(2,383 |
) |
|
2,422 |
|
|
(3,968 |
) |
|
(2,478 |
) |
|
(6,166 |
) |
Interest income |
|
16,456 |
|
|
16,865 |
|
|
8,392 |
|
|
45,145 |
|
|
22,364 |
|
Interest expense, net |
|
(3,198 |
) |
|
(6,065 |
) |
|
(4,149 |
) |
|
(14,445 |
) |
|
(19,692 |
) |
Other (loss) income, net |
|
(5,971 |
) |
|
(4,328 |
) |
|
2,018 |
|
|
7,635 |
|
|
25,180 |
|
Income (loss) before taxes and equity in earnings |
|
63,379 |
|
|
(94,740 |
) |
|
209,282 |
|
|
64,962 |
|
|
234,608 |
|
Income tax (expense) benefit |
|
(2,396 |
) |
|
6,164 |
|
|
(7,580 |
) |
|
(7,857 |
) |
|
26,769 |
|
Equity in earnings, net of tax |
|
(3,233 |
) |
|
40,085 |
|
|
4,045 |
|
|
35,105 |
|
|
5,462 |
|
Net income (loss) |
|
$ |
57,750 |
|
|
$ |
(48,491 |
) |
|
$ |
205,747 |
|
|
$ |
92,210 |
|
|
$ |
266,839 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.55 |
|
|
$ |
(0.46 |
) |
|
$ |
1.97 |
|
|
$ |
0.88 |
|
|
$ |
2.56 |
|
Diluted |
|
$ |
0.54 |
|
|
$ |
(0.46 |
) |
|
$ |
1.95 |
|
|
$ |
0.87 |
|
|
$ |
2.54 |
|
Weighted-average number of shares used in per share
calculations: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
104,804 |
|
|
104,776 |
|
|
104,432 |
|
|
104,711 |
|
|
104,287 |
|
Diluted |
|
106,163 |
|
|
104,776 |
|
|
105,660 |
|
|
106,211 |
|
|
104,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From Mar 2024 to Apr 2024
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From Apr 2023 to Apr 2024