FSLR First Solar Inc

• Net sales of $469 million
• GAAP loss per fully diluted share of ($0.62)
• Cash and marketable securities of $1.5 billion, net cash of $1.2 billion
• 593MWdc of new bookings. Year to date bookings of 905MWdc
• 16.3% lead line efficiency at end of April. 15.6% average lead line efficiency for Q1

First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first quarter of 2015. Net sales were $469 million in the quarter, a decrease of $539 million from the fourth quarter of 2014. The sequential decrease in net sales resulted from retaining projects which would otherwise have generated revenue in anticipation of the Company’s announced plans to pursue a YieldCo. In addition, delays on multiple projects in the current quarter, a higher mix of module only sales and the sale of the SolarGen 2 project in the prior quarter contributed to the lower revenue.

The Company reported a first quarter GAAP loss per fully diluted share of ($0.62), compared to earnings of $1.89 in the prior quarter. The decrease in net income compared to the prior quarter was due to lower revenue, the mix of systems projects under construction and a higher proportion of module only and module plus sales.

Cash and marketable securities at the end of the first quarter were approximately $1.5 billion, a decrease of approximately $507 million compared to the prior quarter. Cash flows used in operations were $418 million in the first quarter. The decrease in cash and marketable securities during the quarter was due also to the increase in project construction on balance sheet in preparation for a YieldCo launch.

“As anticipated, the first quarter was a transitional period as we executed on our plans to form 8point3 Energy Partners,” said Jim Hughes, CEO of First Solar. “We continue to enhance the overall strength of our business with our lead line now running at 16.3% efficiency and our announced strategic alliance with Caterpillar.”

The Company also provided guidance for the second quarter of 2015 as follows:

• Net Sales of $750 to $850 million
• Earnings of $0.45 to $0.55 per fully diluted share, including a non-recurring tax benefit of approximately $0.40
• Cash flow used in operating activities of ($250) to ($350) million

First Solar has scheduled a conference call for today, April 30, 2015 at 5:00 p.m. ET to discuss this announcement. A live webcast of this conference call is available at http://investor.firstsolar.com/events.cfm.

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 Wednesday, May 6, 2015 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 3108257. 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 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. These forward-looking statements include statements, among other things, concerning: our business strategy, including anticipated trends and developments in and management plans for our business and the markets in which we operate; future financial results, operating results, revenues, gross margin, operating expenses, products, projected costs, warranties, solar module efficiency and balance of systems cost reduction roadmaps, product reliability and capital expenditures; our ability to continue to reduce the cost per watt of our solar modules; our ability to reduce the costs to construct PV solar power systems; research and development programs and our ability to improve the conversion efficiency of our solar modules; sales and marketing initiatives; and competition. These forward-looking statements are often characterized by the use of words such as "estimate," "expect," "anticipate," "project," "plan," "intend," "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. 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. 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, the matters discussed in Item 1A: "Risk Factors," of our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC.

*Earnings per share guidance excludes impact related to potential 8point3 Energy Partners IPO transaction occurring in Q2

   

FIRST SOLAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

March 31, 2015

December 31,2014

ASSETS Current assets: Cash and cash equivalents $ 779,908 $ 1,482,054 Marketable securities 704,674 509,032 Accounts receivable trade, net 254,217 135,434 Accounts receivable, unbilled and retainage 81,587 76,971 Inventories 496,599 505,088 Balance of systems parts 119,959 125,083 Deferred project costs 311,118 29,354 Deferred tax assets, net 73,419 91,565 Assets held for sale 20,728 20,728 Notes receivable, affiliate 44,210 12,487 Prepaid expenses and other current assets 263,284   202,670 Total current assets 3,149,703 3,190,466 Property, plant and equipment, net 1,368,443 1,402,304 PV solar power systems, net 45,723 46,393 Project assets and deferred project costs 833,154 810,348 Deferred tax assets, net 210,536 222,326 Restricted cash and investments 421,875 407,053 Investments in unconsolidated affiliates and joint ventures 257,321 255,029 Goodwill 84,985 84,985 Other intangibles, net 118,364 119,236 Inventories 115,578 115,617 Note receivable, affiliate 9,127 9,127 Other assets 59,865   61,555 Total assets $ 6,674,674   $ 6,724,439 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 202,755 $ 214,656 Income taxes payable 2,882 1,727 Accrued expenses 436,913 388,156 Current portion of long-term debt 42,123 51,918 Billings in excess of costs and estimated earnings 171,331 195,346 Payments and billings for deferred project costs 71,639 60,591 Other current liabilities 57,263   88,702 Total current liabilities 984,906 1,001,096 Accrued solar module collection and recycling liability 236,155 246,307 Long-term debt 200,386 165,003 Other liabilities 266,121   284,546 Total liabilities 1,687,568   1,696,952 Commitments and contingencies Stockholders’ equity: Common stock, $0.001 par value per share; 500,000,000 shares authorized; 100,791,414 and 100,288,942 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively 101 100 Additional paid-in capital 2,698,134 2,697,558 Accumulated earnings 2,217,397 2,279,689 Accumulated other comprehensive income 71,474   50,140 Total stockholders’ equity 4,987,106   5,027,487 Total liabilities and stockholders’ equity $ 6,674,674   $ 6,724,439    

FIRST SOLAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended March 31,

 

2015   2014

Net sales

$ 469,209 $ 950,158 Cost of sales 430,228   713,447  

Gross profit

38,981 236,711 Operating expenses: Research and development 34,756 38,773 Selling, general and administrative 67,688 58,664 Production start-up 6,650   —   Total operating expenses 109,094   97,437   Operating (loss) income (70,113 ) 139,274   Foreign currency loss, net (1,596 ) (579 ) Interest income 5,064 4,321 Interest expense, net (194 ) (410 ) Other expense, net (1,259 ) (1,774 ) (Loss) income before taxes and equity in earnings of unconsolidated affiliates (68,098 ) 140,832 Income tax benefit (expense) 5,980 (28,853 ) Equity in earnings of unconsolidated affiliates, net of tax (174 ) 28   Net (loss) income $ (62,292 ) $ 112,007   Net (loss) income per share: Basic $ (0.62 ) $ 1.12   Diluted $ (0.62 ) $ 1.10   Weighted-average number of shares used in per share calculations: Basic 100,375   99,591   Diluted 100,375   101,822    

First Solar InvestorsDavid Brady+1 602-414-9315dbrady@firstsolar.comorSteve Haymore+1 602-414-9315stephen.haymore@firstsolar.comorFirst Solar MediaSteve Krum+1 602-427-3359steve.krum@firstsolar.com