- Net sales of $1.0 billion
- Net income per diluted share of $3.25
- Net cash balance of $1.2 billion
- Maintain full-year 2024 guidance
- YTD net bookings of 3.6 GW; 0.9 GW since first quarter
earnings call with an average selling price of 31.6 cents per watt,
excluding adjusters and India domestic sales
- Expected sales backlog of 75.9 GW
First Solar, Inc. (Nasdaq: FSLR) (the “Company”) today announced
financial results for the second quarter ended June 30, 2024.
Net sales for the second quarter were $1.0 billion, an increase
of $0.2 billion from the prior quarter. The increase was primarily
driven by an increase in the volume of modules sold and an increase
in the average selling price per watt of our modules.
The Company reported second quarter net income per diluted share
of $3.25, compared to net income per diluted share of $2.20 in the
first quarter of 2024.
Cash, cash equivalents, restricted cash, restricted cash
equivalents, and marketable securities, less debt at the end of the
second quarter, decreased to $1.2 billion from $1.4 billion at the
end of the prior quarter. The decrease was primarily a result of
capital expenditures associated with our new U.S. factories in
Alabama and Louisiana along with the repayment of working capital
loans in India, partially offset by increased operating cash flows
from our modules business.
“We are pleased with our financial and operational execution
through the first half of this year as we continue to deliver on
our commitments,” said Mark Widmar, CEO of First Solar. “Our
balanced approach to growth, profitability, and liquidity, combined
with multiple technological and business model points of
differentiation is enabling us to deliver value for both our
customers and our shareholders”.
Our 2024 guidance remains unchanged. The complete 2024 guidance
is as follows:
Prior
Current
Net Sales (1)
$4.4B to $4.6B
Unchanged
Gross Margin (1) (2)
$2.0B to $2.1B
Unchanged
Operating Expenses (1) (3)
$455M to $485M
Unchanged
Operating Income (1) (4)
$1.5B to $1.6B
Unchanged
Earnings per Diluted Share (1)
$13.00 to $14.00
Unchanged
Net Cash Balance (5)
$0.6B to $0.9B
Unchanged
Capital Expenditures
$1.8B to $2.0B
Unchanged
Volume Sold (1)
15.6GW to 16.3GW
Unchanged
——————————
(1)
From a second half earnings
cadence perspective, we anticipate our net sales and cost of sales
profile, excluding the advanced manufacturing production credit
available to us under Section 45X of the Internal Revenue Code
(“Section 45X tax credit”), to be approximately 40 % in the third
quarter and 60% in the fourth quarter. We forecast Section 45X tax
credits of approximately $240 million in the third quarter and $335
million in the fourth quarter. With an operating expense profile
roughly evenly split across the remainder of the year, this results
in a forecasted earnings per share profile of approximately 40% in
the third quarter of the year and 60% in the fourth quarter.
(2)
Assumes $40 million to $60
million of ramp costs and $1.0 billion to $1.05 billion of Section
45X tax credits
(3)
Assumes $70 million to $80
million of production start-up expense
(4)
Assumes $110 million to $140
million of production start-up expense and ramp costs, and $1.0
billion to $1.05 billion of Section 45X tax credits
(5)
Defined as cash, cash
equivalents, restricted cash, restricted cash equivalents, and
marketable securities, less expected debt at the end of 2024
The guidance figures presented above are forward-looking
statements that are subject to a variety of assumptions and
estimates, including with respect to certain factors related to the
Inflation Reduction Act of 2022 (the “IRA”). Among other things,
such factors include (i) the total Section 45X tax credit and (ii)
the timing and ability to monetize such credit. Investors are
encouraged to listen to the conference call and to review the
accompanying materials, which contain more information about First
Solar’s second quarter 2024 financial results, 2024 guidance, and
financial outlook.
Conference Call Details
First Solar has scheduled a conference call for today, July 30,
2024, 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. 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 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;
increased research and development investment; new domestic and
international capacity coming online; production and delivery of
our modules; our financial guidance for 2024, including future
financial results, net sales, gross margin, operating expenses,
operating income, earnings per diluted share, net cash balance,
capital expenditures, expected earnings cadence, volume sold,
shipments, bookings, products and our business and financial
objectives for 2024; the availability of benefits under certain
production linked incentive programs, and the impact of the IRA
including the total advanced manufacturing production credit
available to us under Section 45X of the Internal Revenue Code.
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, such as the IRA; the impact
of the IRA on our expected results of operations in future periods,
which may be affected by technical guidance, regulations,
subsequent amendments or interpretations of the law; 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; our ability to incorporate technology
improvements into our manufacturing process, including the
production of bifacial solar modules and the implementation of our
Copper Replacement (“CuRe”) program; 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; 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 arising from and results
of pending litigation; future collection and recycling costs for
solar modules covered by our module collection and recycling
program or otherwise as required by laws and regulations; supply
chain disruptions; our ability to protect our intellectual
property; our ability to prevent and/or minimize the impact of
cybersecurity incidents including breaches or outages 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 construct new production facilities
to support new product lines in line with anticipated timing;
evolving corporate governance and public disclosure regulations and
expectations, including with respect to environmental, social and
governance matters; our ability to avoid manufacturing
interruptions, including during the ramp of our manufacturing
facilities; our ability to attract and retain key executive
officers and associates; the severity and duration of public health
threats, including the 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 Condition and Results of Operations” of our
most recent Annual Report on Form 10-K, as supplemented by our
other filings with the Securities and Exchange Commission.
FIRST SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
June 30, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,702,913
$
1,946,994
Marketable securities
37,430
155,495
Accounts receivable trade, net
647,565
660,776
Government grants receivable, net
6,034
659,745
Inventories
1,027,872
819,899
Other current assets
527,109
391,900
Total current assets
3,948,923
4,634,809
Property, plant and equipment, net
5,139,000
4,397,285
Deferred tax assets, net
201,801
142,819
Restricted marketable securities
200,243
198,310
Government grants receivable
607,086
152,208
Goodwill
28,834
29,687
Intangible assets, net
59,267
64,511
Inventories
273,977
266,899
Other assets
555,124
478,604
Total assets
$
11,014,255
$
10,365,132
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
230,894
$
207,178
Income taxes payable
81,172
22,134
Accrued expenses
540,126
524,829
Current portion of debt
140,175
96,238
Deferred revenue
689,468
413,579
Other current liabilities
90,794
42,200
Total current liabilities
1,772,629
1,306,158
Accrued solar module collection and
recycling liability
134,803
135,123
Long-term debt
418,725
464,068
Deferred revenue
1,258,880
1,591,604
Other liabilities
173,821
180,710
Total liabilities
3,758,858
3,677,663
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per share;
500,000,000 shares authorized; 107,045,972 and 106,847,475 shares
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively
107
107
Additional paid-in capital
2,886,569
2,890,427
Accumulated earnings
4,557,038
3,971,066
Accumulated other comprehensive loss
(188,317
)
(174,131
)
Total stockholders’ equity
7,255,397
6,687,469
Total liabilities and stockholders’
equity
$
11,014,255
$
10,365,132
FIRST SOLAR, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net sales
$
1,010,482
$
794,108
$
810,673
$
1,804,590
$
1,358,959
Cost of sales
511,593
448,105
500,253
959,698
936,488
Gross profit
498,889
346,003
310,420
844,892
422,471
Operating expenses:
Selling, general and administrative
46,560
45,827
46,328
92,387
90,356
Research and development
51,937
42,742
36,745
94,679
67,255
Production start-up
27,451
15,408
23,377
42,859
42,871
Litigation loss
430
—
35,590
430
35,590
Total operating expenses
126,378
103,977
142,040
230,355
236,072
Gain on sales of businesses, net
—
1,115
135
1,115
118
Operating income
372,511
243,141
168,515
615,652
186,517
Foreign currency loss, net
(9,649
)
(2,858
)
(4,652
)
(12,507
)
(10,599
)
Interest income
24,599
27,245
25,026
51,844
50,848
Interest expense, net
(9,765
)
(9,210
)
(1,415
)
(18,975
)
(2,163
)
Other (expense) income, net
(565
)
(2,799
)
997
(3,364
)
(459
)
Income before taxes
377,131
255,519
188,471
632,650
224,144
Income tax expense
(27,775
)
(18,903
)
(17,892
)
(46,678
)
(11,004
)
Net income
$
349,356
$
236,616
$
170,579
$
585,972
$
213,140
Net income per share:
Basic
$
3.26
$
2.21
$
1.60
$
5.48
$
2.00
Diluted
$
3.25
$
2.20
$
1.59
$
5.45
$
1.99
Weighted-average number of shares used in
per share calculations:
Basic
107,042
106,910
106,827
107,011
106,791
Diluted
107,525
107,407
107,278
107,502
107,256
FIRST SOLAR, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2024
2023
Cash flows from operating
activities:
Net income
$
585,972
$
213,140
Adjustments to reconcile net income to
cash provided by (used in) operating activities:
Depreciation, amortization and
accretion
187,921
140,560
Share-based compensation
15,191
15,011
Deferred income taxes
(58,399
)
(42,607
)
Gain on sales of businesses, net
(1,115
)
(118
)
Other, net
1,650
(8,843
)
Changes in operating assets and
liabilities:
Accounts receivable, trade
29,613
(177,591
)
Inventories
(215,493
)
(131,625
)
Government grants receivable
205,528
(225,121
)
Other assets
(168,363
)
(96,617
)
Income tax receivable and payable
3,774
(20,090
)
Accounts payable and accrued expenses
(113,255
)
(42,994
)
Deferred revenue
(12,499
)
211,721
Other liabilities
212
40,898
Net cash provided by (used in) operating
activities
460,737
(124,276
)
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(778,618
)
(753,656
)
Purchases of marketable securities and
restricted marketable securities
(1,113,826
)
(2,492,495
)
Proceeds from sales and maturities of
marketable securities
1,224,167
2,538,069
Acquisitions, net of cash acquired
—
(35,540
)
Other investing activities
(7,697
)
—
Net cash used in investing activities
(675,974
)
(743,622
)
Cash flows from financing
activities:
Proceeds from borrowings under debt
arrangements, net of issuance costs
110,395
246,825
Repayment of debt
(111,375
)
—
Payments of tax withholdings for
restricted shares
(19,148
)
(30,247
)
Contingent consideration payment and other
financing activities
(7,527
)
—
Net cash (used in) provided by financing
activities
(27,655
)
216,578
Effect of exchange rate changes on cash,
cash equivalents, restricted cash, and restricted cash
equivalents
(5,600
)
2,454
Net decrease in cash, cash equivalents,
restricted cash, and restricted cash equivalents
(248,492
)
(648,866
)
Cash, cash equivalents, restricted cash,
and restricted cash equivalents, beginning of the period
1,965,069
1,493,462
Cash, cash equivalents, restricted cash,
and restricted cash equivalents, end of the period
$
1,716,577
$
844,596
Supplemental disclosure of noncash
investing and financing activities:
Property, plant and equipment acquisitions
funded by liabilities
$
402,263
$
183,482
Proceeds to be received from asset-based
government grants
$
158,908
$
—
Acquisitions funded by liabilities and
contingent consideration
$
11,000
$
18,686
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730174252/en/
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