- Net sales of $848 million
- Earnings per share of $1.66
- Cash and marketable securities of
$1.9 billion, net cash of $1.6 billion
- 2016 EPS guidance range updated to
$4.10 to $4.50
First Solar, Inc. (Nasdaq: FSLR) today announced financial
results for the first quarter of 2016. Net sales were $848 million
in the quarter, a decrease of $94 million from the fourth quarter
of 2015. The decrease in net sales from the prior quarter was
primarily due to the timing of systems revenue recognition across
multiple projects, partially offset by higher revenue from the
Desert Stateline project. In addition, net sales from module plus
offerings decreased versus the fourth quarter.
The increase in Desert Stateline revenue in the first quarter
resulted from an amendment to the original sale agreement with
Southern Company to include an additional 15% interest in the
project. This amendment did not impact expected full year 2016
earnings, but did accelerate the timing of certain earnings,
relative to prior expectations, from the second half of the year to
the first quarter.
The Company reported first quarter earnings per share of $1.66,
compared to $1.60 in the prior quarter. The increase in net income
versus the fourth quarter resulted from higher Desert Stateline
revenue, systems cost improvements and a one-time gain on the sale
of certain restricted investments. These items were partially
offset by an increase in tax expense.
Cash and marketable securities at the end of the first quarter
increased to $1.9 billion. Cash flows from operations were $50
million in the first quarter.
“Our first quarter results represent a very strong start to
2016,” said Jim Hughes, CEO of First Solar. “The sale of additional
economic interests in our Stateline project further strengthens our
relationship with a strategic business partner, and the transaction
provides greater flexibility for future dropdowns to 8point3. We
continue to operate our business with a disciplined approach and
are focused on achieving our 2016 objectives communicated at our
recent Analyst Day.”
The Company raised the low end of its 2016 earnings per share
guidance to $4.10 and updated other forecasted financial items as
follows:
2016 Guidance
Prior Current
Net Sales
$3.8B to $4.0B
Unchanged
Gross Margin %
17% to 18%
18% to 19%
Operating Expenses
$380M to $400M
Unchanged
Operating Income
$260M to $330M
$300M to $370M
Effective Tax Rate
16% to 18%
Unchanged
Earnings per Share1
$4.00 to $4.50
$4.10 to $4.50
Net Cash Balance2
$1.9B to $2.2B
Unchanged
Operating Cash Flow3
$400M to $600M
$500M to $700M
Capital Expenditures
$300M to $400M
Unchanged
Shipments
2.9GW to 3.0GW
Unchanged
1 – Includes a gain of approximately $145 million, net of tax,
from the expected sale of an equity method investment and our share
of 8point3 earnings. Also includes a gain in Other Income of
approximately $20 million, net of tax, from the sale of restricted
investments in Q1 2016.2 – Defined as cash and marketable
securities less expected debt at the end of 20163 – Does not
include approximately $320 million from the expected sale of an
equity method investment treated as an investing cash flow
First Solar has scheduled a conference call for today, April 27,
2016 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 Wednesday, May 4, 2016 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 8282574. 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: effects on our
financial statements and guidance resulting from pending tax
matters; 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 (including estimated future module collection and
recycling 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;
our ability to expand manufacturing capacity worldwide; 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,"
"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. 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.
FIRST SOLAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
March 31, 2016
December 31, 2015
ASSETS Current assets: Cash and cash equivalents $ 1,086,280
$ 1,126,826 Marketable securities 794,220 703,454 Accounts
receivable trade, net 349,467 500,629 Accounts receivable, unbilled
and retainage 86,875 59,171 Inventories 443,777 380,424 Balance of
systems parts 155,233 136,889 Deferred project costs 131,249
187,940 Notes receivable, affiliate 389 1,276 Prepaid expenses and
other current assets 226,667 248,977 Total current assets
3,274,157 3,345,586 Property, plant and equipment, net 1,278,386
1,284,136 PV solar power systems, net 102,249 93,741 Project assets
and deferred project costs 1,375,468 1,111,137 Deferred tax assets,
net 359,959 357,693 Restricted cash and investments 401,703 333,878
Investments in unconsolidated affiliates and joint ventures 392,169
399,805 Goodwill 84,985 84,985 Other intangibles, net 107,020
110,002 Inventories 106,085 107,759 Notes receivable, affiliates
17,851 17,887 Other assets 77,757 69,722 Total assets $
7,577,789 $ 7,316,331
LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable $ 274,991 $
337,668 Income taxes payable 7,414 1,330 Accrued expenses 351,865
409,452 Current portion of long-term debt 94,080 38,090 Billings in
excess of costs and estimated earnings 148,328 87,942 Payments and
billings for deferred project costs 104,076 28,580 Other current
liabilities 83,375 57,738 Total current liabilities
1,064,129 960,800 Accrued solar module collection and recycling
liability 167,650 163,407 Long-term debt 205,262 251,325 Other
liabilities 401,803 392,312 Total liabilities 1,838,844
1,767,844 Commitments and contingencies Stockholders’
equity: Common stock, $0.001 par value per share; 500,000,000
shares authorized; 102,219,007 and 101,766,797 shares issued and
outstanding at March 31, 2016 and December 31, 2015, respectively
102 102 Additional paid-in capital 2,751,074 2,742,795 Accumulated
earnings 2,960,675 2,790,110 Accumulated other comprehensive income
27,094 15,480 Total stockholders’ equity 5,738,945
5,548,487 Total liabilities and stockholders’ equity $ 7,577,789
$ 7,316,331
FIRST SOLAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended March 31,
2016 2015
Net sales $ 848,484 $ 469,209 Cost of sales 585,539 430,228
Gross profit 262,945 38,981 Operating expenses: Research and
development 30,187 34,756 Selling, general and administrative
67,503 67,688 Production start-up — 6,650 Total
operating expenses 97,690 109,094 Operating income
(loss) 165,255 (70,113 ) Foreign currency loss, net (3,240 ) (221 )
Interest income 6,406 5,064 Interest expense, net (4,642 ) (194 )
Other income (expense), net 35,553 (1,259 ) Income (loss)
before taxes and equity in earnings of unconsolidated affiliates
199,332 (66,723 ) Income tax (expense) benefit (33,764 ) 5,980
Equity in earnings of unconsolidated affiliates, net of tax 4,997
(174 ) Net income (loss) $ 170,565 $ (60,917 ) Net
income (loss) per share: Basic $ 1.67 $ (0.61 ) Diluted $
1.66 $ (0.61 ) Weighted-average number of shares used in per
share calculations: Basic 101,853 100,375 Diluted
102,745 100,375
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160427006686/en/
First Solar InvestorsSteve Haymore+1
602-414-9315stephen.haymore@firstsolar.comorFirst Solar
MediaSteve Krum+1 602-427-3359steve.krum@firstsolar.com
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From Feb 2024 to Mar 2024
First Solar (NASDAQ:FSLR)
Historical Stock Chart
From Mar 2023 to Mar 2024