First Solar, Inc. (Nasdaq: FSLR) today announced financial results
for the third quarter ended September 30, 2022.
Net sales for the third quarter were $629
million, an increase of $8 million from the prior quarter,
primarily due to increased module sales.
Operating loss for the third quarter was $68
million, compared to operating income of $145 million in the prior
quarter. Third quarter operating income decreased primarily due to
a gain on the sale of the Company’s Japan project development
platform recorded in the prior quarter and higher logistics charges
in the third quarter.
The Company reported a third quarter loss per
diluted share of $0.46, compared to income per diluted share of
$0.52 in the prior quarter.
Cash, cash equivalents, restricted cash, and
marketable securities at the end of the third quarter remained at
$1.9 billion, consistent with the prior quarter. Capital
expenditures for Series 7 expansions were funded by operating cash
flows and disbursements under the Company’s credit facility with
the U.S. International Development Finance Corporation supporting
the financing of the India manufacturing plant.
“Our focus continues to be on setting the stage
for long-term growth, and from this point of view, 2022 has so far
proven to be foundational,” said Mark Widmar, CEO of First Solar.
“This year we have developed the potential for our CdTe
semiconductor technology by progressing our next-generation Series
7 and bifacial platforms, set in motion plans to scale our global
manufacturing capacity to over 20 GWDC by 2025, and secured record
year-to-date bookings of 43.7 GWDC with deliveries extending into
2027.”
The complete 2022 guidance has been updated as
follows:
|
Prior |
Current |
Net Sales |
$2.55B to $2.8B |
$2.6B to $2.7B |
Gross Profit (1)(2) |
$115M to $165M |
$75M to $110M |
Operating Expenses (3) |
$350M to $365M |
$345M to $360M |
Operating Income (2)(4)(5) |
$5M to $70M |
$(30)M to $20M |
Earnings (Loss) per Diluted Share |
$(0.25) to $0.25 |
$(0.65) to $(0.35) |
Net Cash Balance (6) |
$1.3B to $1.5B |
$1.6B to $2.0B |
Capital Expenditures |
$850M to $1.1B |
$800M to $1.0B |
Shipments |
8.9GW to 9.4GW |
9.1GW to 9.4GW |
________________
(1) Includes $10 million to $15 million of
underutilization losses (2) Includes
$45 million to $50 million of losses associated with a legacy
systems business asset in Chile
(3) Includes $80 million to $85 million of
production start-up expense
(4) Includes $90 million to $100 million of
production start-up expense and underutilization losses
(5) Includes $245 million pre-tax gain
related to the sale of the Japan project development and O&M
platforms (6) Defined as cash, cash
equivalents, marketable securities, and restricted cash less
expected debt at the end of 2022
The guidance figures presented above are
forward-looking statements that 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 third quarter 2022
financial results, 2022 guidance, and financial outlook.
Conference Call Details
First Solar has scheduled a conference call for
today, October 27, 2022, 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. An
audio replay of the conference call will be available through
Friday, November 26, 2022, and can be accessed by dialing
+1 (800) 770-2030 if you are calling from within the United
States or +1 (647) 362-9199 if you are calling from
outside the United States. A replay of the webcast will also be
available on the Investors section of the Company’s website
approximately five hours after the conclusion of the call and
remain available for 30 days.
About First Solar, Inc.
First Solar is a leading American solar
technology company and global provider of responsibly-produced
eco-efficient solar modules advancing the fight against climate
change. Developed at research and development labs in California
and Ohio, the Company’s advanced thin film photovoltaic (“PV”)
modules represent the next generation of solar technologies,
providing a competitive, high-performance, lower-carbon alternative
to conventional crystalline silicon PV panels. From raw material
sourcing and manufacturing through end-of-life module recycling,
First Solar’s approach to technology embodies sustainability and a
responsibility towards people and the planet. For more information,
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: demand for
our technology; our expected module shipment backlog; the
anticipated sale of our Luz del Norte project in Chile; our
financial guidance for 2022, including future financial results,
operating results, net sales, gross margin, operating expenses,
operating income, earnings per share, loss per share, net cash
balance, capital expenditures, shipments, bookings, products and
our business and financial objectives for 2022; bookings momentum;
and the strength of our backlog of future expected deliveries.
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,” “contingent” 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 our forward-looking statements. These factors include,
but are not limited to: structural imbalances in global supply and
demand for PV solar modules; our competitive position and other key
competitive factors; the market for renewable energy, including
solar energy; the reduction, elimination, expiration or
introduction 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; the passage of legislation intended to encourage renewable
energy investments through tax credits; interest rate fluctuations
and both our and our customers’ ability to secure financing;
changes in the exchange rates between the functional currencies of
our subsidiaries and other currencies in which assets and
liabilities are denominated; our ability to execute on our
long-term strategic plans; the loss of any of our large customers,
or the ability of our customers and counterparties to perform under
their contracts with us; our ability to execute on our solar module
technology and cost reduction roadmaps; our ability to improve the
wattage of our solar modules; the creditworthiness of our offtake
counterparties and the ability of our offtake counterparties to
fulfill their contractual obligations to us; the satisfaction of
conditions precedent in our sales agreements; our ability to
attract new customers and to develop and maintain existing customer
and supplier relationships; our ability to successfully develop and
complete our systems business projects; our ability to convert
existing production facilities to support new product lines;
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; supply chain
disruption, including the availability of shipping containers, port
congestion, canceled shipments by logistic providers, and the cost
of fuel, demurrage, and detention charges, all of which may be
exacerbated by the COVID-19 pandemic and the Russia-Ukraine
conflict; 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 convert existing or
construct production facilities to support new product lines; our
ability to attract and retain key executive officers and
associates; the severity and duration of the COVID-19 pandemic,
including its potential impact on our business, financial
condition, and results of operations; and the matters discussed
under the captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Conditions and Results of Operations” of our
most recent Annual Report on Form 10-K and our subsequently filed
Quarterly Reports on Form 10-Q, as supplemented by our other
filings with the Securities and Exchange Commission.
Contacts
First Solar
Investorsinvestor@firstsolar.com
First Solar
Mediamedia@firstsolar.com
FIRST SOLAR,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(In thousands, except share
data)(Unaudited)
|
|
September 30,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,150,982 |
|
|
$ |
1,450,654 |
|
Marketable securities |
|
|
776,213 |
|
|
|
375,389 |
|
Accounts receivable trade, net |
|
|
325,421 |
|
|
|
429,436 |
|
Accounts receivable unbilled, net |
|
|
35,149 |
|
|
|
25,273 |
|
Inventories |
|
|
810,660 |
|
|
|
666,299 |
|
Other current assets |
|
|
240,325 |
|
|
|
244,192 |
|
Total current assets |
|
|
3,338,750 |
|
|
|
3,191,243 |
|
Property, plant and equipment,
net |
|
|
3,124,079 |
|
|
|
2,649,587 |
|
PV solar power systems,
net |
|
|
153,915 |
|
|
|
217,293 |
|
Project assets |
|
|
27,827 |
|
|
|
315,488 |
|
Deferred tax assets, net |
|
|
64,101 |
|
|
|
59,162 |
|
Restricted marketable securities |
|
|
182,208 |
|
|
|
244,726 |
|
Goodwill |
|
|
14,462 |
|
|
|
14,462 |
|
Intangible assets, net |
|
|
36,631 |
|
|
|
45,509 |
|
Inventories |
|
|
239,644 |
|
|
|
237,512 |
|
Other assets |
|
|
311,200 |
|
|
|
438,764 |
|
Total assets |
|
$ |
7,492,817 |
|
|
$ |
7,413,746 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
188,280 |
|
|
$ |
193,374 |
|
Income taxes payable |
|
|
25,771 |
|
|
|
4,543 |
|
Accrued expenses |
|
|
333,140 |
|
|
|
288,450 |
|
Current portion of long-term debt |
|
|
5,435 |
|
|
|
3,896 |
|
Deferred revenue |
|
|
235,293 |
|
|
|
201,868 |
|
Other current liabilities |
|
|
28,349 |
|
|
|
34,747 |
|
Total current liabilities |
|
|
816,268 |
|
|
|
726,878 |
|
Accrued solar module
collection and recycling liability |
|
|
120,173 |
|
|
|
139,145 |
|
Long-term debt |
|
|
254,224 |
|
|
|
236,005 |
|
Other liabilities |
|
|
473,815 |
|
|
|
352,167 |
|
Total liabilities |
|
|
1,664,480 |
|
|
|
1,454,195 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 106,605,913 and 106,332,315 shares issued and
outstanding at September 30, 2022 and December 31, 2021,
respectively |
|
|
107 |
|
|
|
106 |
|
Additional paid-in capital |
|
|
2,880,243 |
|
|
|
2,871,352 |
|
Accumulated earnings |
|
|
3,147,837 |
|
|
|
3,184,455 |
|
Accumulated other comprehensive loss |
|
|
(199,850 |
) |
|
|
(96,362 |
) |
Total stockholders’ equity |
|
|
5,828,337 |
|
|
|
5,959,551 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,492,817 |
|
|
$ |
7,413,746 |
|
FIRST SOLAR,
INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(In thousands,
except per share amounts)(Unaudited)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2022 |
|
September 30,2021 |
|
|
September 30,2022 |
|
September 30,2021 |
Net sales |
|
$ |
628,933 |
|
|
$ |
620,955 |
|
|
$ |
583,504 |
|
|
|
$ |
1,616,928 |
|
|
$ |
2,016,058 |
|
Cost of sales |
|
|
607,951 |
|
|
|
644,155 |
|
|
|
458,924 |
|
|
|
|
1,607,683 |
|
|
|
1,532,593 |
|
Gross profit (loss) |
|
|
20,982 |
|
|
|
(23,200 |
) |
|
|
124,580 |
|
|
|
|
9,245 |
|
|
|
483,465 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
46,368 |
|
|
|
38,894 |
|
|
|
43,476 |
|
|
|
|
121,990 |
|
|
|
131,909 |
|
Research and development |
|
|
29,183 |
|
|
|
25,229 |
|
|
|
25,426 |
|
|
|
|
81,520 |
|
|
|
69,234 |
|
Production start-up |
|
|
19,768 |
|
|
|
13,231 |
|
|
|
2,945 |
|
|
|
|
40,337 |
|
|
|
16,014 |
|
Total operating expenses |
|
|
95,319 |
|
|
|
77,354 |
|
|
|
71,847 |
|
|
|
|
243,847 |
|
|
|
217,157 |
|
Gain on sales of businesses,
net |
|
|
5,984 |
|
|
|
245,381 |
|
|
|
(1,866 |
) |
|
|
|
253,272 |
|
|
|
147,284 |
|
Operating (loss) income |
|
|
(68,353 |
) |
|
|
144,827 |
|
|
|
50,867 |
|
|
|
|
18,670 |
|
|
|
413,592 |
|
Foreign currency loss,
net |
|
|
(4,859 |
) |
|
|
(2,984 |
) |
|
|
(1,018 |
) |
|
|
|
(12,041 |
) |
|
|
(4,613 |
) |
Interest income |
|
|
9,749 |
|
|
|
2,880 |
|
|
|
1,752 |
|
|
|
|
14,954 |
|
|
|
3,996 |
|
Interest expense, net |
|
|
(2,991 |
) |
|
|
(3,236 |
) |
|
|
(2,958 |
) |
|
|
|
(9,092 |
) |
|
|
(10,577 |
) |
Other income (expense),
net |
|
|
4,774 |
|
|
|
(1,883 |
) |
|
|
(2,603 |
) |
|
|
|
2,679 |
|
|
|
2,598 |
|
(Loss) income before
taxes |
|
|
(61,680 |
) |
|
|
139,604 |
|
|
|
46,040 |
|
|
|
|
15,170 |
|
|
|
404,996 |
|
Income tax benefit
(expense) |
|
|
12,512 |
|
|
|
(83,799 |
) |
|
|
(837 |
) |
|
|
|
(51,788 |
) |
|
|
(67,673 |
) |
Net (loss) income |
|
$ |
(49,168 |
) |
|
$ |
55,805 |
|
|
$ |
45,203 |
|
|
|
$ |
(36,618 |
) |
|
$ |
337,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.46 |
) |
|
$ |
0.52 |
|
|
$ |
0.43 |
|
|
|
$ |
(0.34 |
) |
|
$ |
3.18 |
|
Diluted |
|
$ |
(0.46 |
) |
|
$ |
0.52 |
|
|
$ |
0.42 |
|
|
|
$ |
(0.34 |
) |
|
$ |
3.16 |
|
Weighted-average number of
shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
106,596 |
|
|
|
106,586 |
|
|
|
106,320 |
|
|
|
|
106,532 |
|
|
|
106,241 |
|
Diluted |
|
|
106,596 |
|
|
|
107,056 |
|
|
|
106,899 |
|
|
|
|
106,532 |
|
|
|
106,879 |
|
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