UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2015
FIRST SOLAR, INC.
(Exact name of registrant as specified in its charter)
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| | | | |
Delaware (State or other jurisdiction of incorporation) | | 001-33156 (Commission File Number) | | 20-4623678 (I.R.S. Employer Identification No.) |
350 West Washington Street
Suite 600
Tempe, Arizona 85281
(Address of principal executive offices, including zip code)
(602) 414-9300
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On August 4, 2015, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the second quarter ended June 30, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
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| | |
Exhibit Number | | Description |
99.1 | | Press Release of First Solar, Inc. dated August 4, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| FIRST SOLAR, INC. |
| | | |
Dated: August 4, 2015 | By: | | /s/ PAUL KALETA |
| Name: | | Paul Kaleta |
| Title: | | Executive Vice President and General Counsel |
EXHIBIT 99.1
First Solar, Inc. Announces Second Quarter 2015 Financial Results
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• | Net sales of $896 million |
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• | GAAP earnings per fully diluted share of $0.93 |
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• | Cash and marketable securities of $1.8 billion, net cash of $1.5 billion |
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• | 537MWdc of new bookings. Year-to-date bookings of 1.4GWdc |
TEMPE, Ariz., Aug 4, 2015 - First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the second quarter of 2015. Net sales were $896 million in the quarter, an increase of $427 million from the first quarter of 2015. The increase in net sales from the prior quarter resulted from increased revenue recognition on the Silver State South project and the sale of majority interests in the North Star and Lost Hills-Blackwell projects.
The Company reported second quarter GAAP earnings per fully diluted share of $0.93, compared to a loss of ($0.62) in the prior quarter. The sequential increase in net income was due to higher systems project revenue, project cost improvements and a discrete tax benefit in the second quarter of approximately $42 million.
Cash and marketable securities at the end of the second quarter were approximately $1.8 billion, an increase of approximately $291 million compared to the prior quarter. The increase in cash and marketable securities during the quarter was due to receipts from the sale of majority interests in the North Star and Lost Hills-Blackwell projects as well as proceeds received in conjunction with the 8point3 Energy Partners IPO.
“We achieved significant financial and technological milestones this past quarter with the IPO of 8point3 Energy Partners and a new record module conversion efficiency of 18.6%,” said Jim Hughes, CEO of First Solar. “In combination with year-to-date bookings of 1.4GW and full year earnings guidance of over three dollars per share, we continue to execute across all elements of our business.”
The Company also provided guidance for 2015 as follows:
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| |
| Guidance Range |
Net Sales | $3.5B to $3.6B |
Gross Margin % | 21% to 22% |
Operating Expenses | $415M to $425M |
Operating Income | $330M to $370M |
Effective Tax Rate1 | 2% to 5% |
Earnings per Share1, 4 | $3.30 to $3.60 |
Net Cash Balance2 | $1.2B to $1.4B |
Capital Expenditures | $175M to $200M |
Working Capital3 | $1.1B to $1.3B |
Shipments | 2.8GW to 2.9GW |
1.Includes $42 million benefit from discrete tax item in Q2 2015
2.Cash & Marketable securities less debt at end of 2015
3.Expected increase in working capital from December 31, 2014
4.Includes $0.16 of equity in earnings, primarily related to ownership interest in 8point3
First Solar has scheduled a conference call for today, August 4, 2015 at 4:30 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 Monday, August 10, 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 2733708. 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, restructuring, product reliability, investments in unconsolidated affiliates 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.
Contacts
First Solar Investors
Steve Haymore
+1 602 414-9315
stephen.haymore@firstsolar.com
First Solar Media
Steve Krum
+1 602-427-3359
steve.krum@firstsolar.com
FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
|
| | | | | | | | |
| | June 30,
2015 | | December 31,
2014 |
ASSETS | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 1,075,144 |
| | $ | 1,482,054 |
|
Marketable securities | | 700,017 |
| | 509,032 |
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Accounts receivable trade, net | | 276,819 |
| | 135,434 |
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Accounts receivable, unbilled and retainage | | 70,367 |
| | 76,971 |
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Inventories | | 481,975 |
| | 505,088 |
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Balance of systems parts | | 94,360 |
| | 125,083 |
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Deferred project costs | | 73,739 |
| | 29,354 |
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Deferred tax assets, net | | 77,709 |
| | 91,565 |
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Notes receivable, affiliate | | 43,345 |
| | 12,487 |
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Prepaid expenses and other current assets | | 262,731 |
| | 202,151 |
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Total current assets | | 3,156,206 |
| | 3,169,219 |
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Property, plant and equipment, net | | 1,356,231 |
| | 1,419,988 |
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PV solar power systems, net | | 43,233 |
| | 46,393 |
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Project assets and deferred project costs | | 1,060,780 |
| | 810,348 |
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Deferred tax assets, net | | 262,389 |
| | 222,326 |
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Restricted cash and investments | | 377,401 |
| | 407,053 |
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Investments in unconsolidated affiliates and joint ventures | | 153,508 |
| | 255,029 |
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Goodwill | | 84,985 |
| | 84,985 |
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Other intangibles, net | | 115,454 |
| | 119,236 |
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Inventories | | 108,558 |
| | 115,617 |
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Note receivable, affiliate | | 9,852 |
| | 9,127 |
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Other assets | | 75,208 |
| | 61,670 |
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Total assets | | $ | 6,803,805 |
| | $ | 6,720,991 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
Current liabilities: | | | | |
Accounts payable | | $ | 273,280 |
| | $ | 214,656 |
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Income taxes payable | | 4,771 |
| | 1,727 |
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Accrued expenses | | 367,354 |
| | 388,156 |
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Current portion of long-term debt | | 41,898 |
| | 51,399 |
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Billings in excess of costs and estimated earnings | | 168,587 |
| | 195,346 |
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Payments and billings for deferred project costs | | — |
| | 60,591 |
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Other current liabilities | | 58,217 |
| | 88,702 |
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Total current liabilities | | 914,107 |
| | 1,000,577 |
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Accrued solar module collection and recycling liability | | 240,972 |
| | 246,307 |
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Long-term debt | | 257,787 |
| | 162,074 |
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Other liabilities | | 349,469 |
| | 284,546 |
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Total liabilities | | 1,762,335 |
| | 1,693,504 |
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Commitments and contingencies | | | | |
Stockholders’ equity: | | | | |
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 100,891,055 and 100,288,942 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | | 101 |
| | 100 |
|
Additional paid-in capital | | 2,716,493 |
| | 2,697,558 |
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Accumulated earnings | | 2,311,888 |
| | 2,279,689 |
|
Accumulated other comprehensive income | | 12,988 |
| | 50,140 |
|
Total stockholders’ equity | | 5,041,470 |
| | 5,027,487 |
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Total liabilities and stockholders’ equity | | $ | 6,803,805 |
| | $ | 6,720,991 |
|
FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Net sales | | $ | 896,217 |
| | $ | 544,353 |
| | $ | 1,365,426 |
| | $ | 1,494,511 |
|
Cost of sales | | 731,734 |
| | 451,628 |
| | 1,161,962 |
| | 1,165,075 |
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Gross profit | | 164,483 |
| | 92,725 |
| | 203,464 |
| | 329,436 |
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Operating expenses: | | | | | | | | |
Research and development | | 29,479 |
| | 32,659 |
| | 64,235 |
| | 71,432 |
|
Selling, general and administrative | | 70,901 |
| | 57,667 |
| | 138,589 |
| | 116,331 |
|
Production start-up | | 6,970 |
| | 491 |
| | 13,620 |
| | 491 |
|
Total operating expenses | | 107,350 |
| | 90,817 |
| | 216,444 |
| | 188,254 |
|
Operating income (loss) | | 57,133 |
| | 1,908 |
| | (12,980 | ) | | 141,182 |
|
Foreign currency (loss) gain, net | | (2,352 | ) | | 21 |
| | (3,948 | ) | | (558 | ) |
Interest income | | 6,058 |
| | 4,533 |
| | 11,122 |
| | 8,854 |
|
Interest expense, net | | (826 | ) | | (930 | ) | | (1,020 | ) | | (1,340 | ) |
Other expense, net | | (792 | ) | | (1,166 | ) | | (2,051 | ) | | (2,940 | ) |
Income (loss) before taxes and equity in earnings of unconsolidated affiliates | | 59,221 |
| | 4,366 |
| | (8,877 | ) | | 145,198 |
|
Income tax benefit (expense) | | 33,340 |
| | 2,166 |
| | 39,320 |
| | (26,687 | ) |
Equity in earnings (loss) of unconsolidated affiliates, net of tax | | 1,929 |
| | (2,004 | ) | | 1,755 |
| | (1,976 | ) |
Net income | | $ | 94,490 |
| | $ | 4,528 |
| | $ | 32,198 |
| | $ | 116,535 |
|
Net income per share: | | | | | | | | |
Basic | | $ | 0.94 |
| | $ | 0.05 |
| | $ | 0.32 |
| | $ | 1.17 |
|
Diluted | | $ | 0.93 |
| | $ | 0.04 |
| | $ | 0.32 |
| | $ | 1.14 |
|
Weighted-average number of shares used in per share calculations: | | | | | | | | |
Basic | | 100,852 |
| | 100,148 |
| | 100,615 |
| | 99,871 |
|
Diluted | | 101,607 |
| | 101,814 |
| | 101,631 |
| | 101,820 |
|
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