Achieves Record Revenue and Profits
First U.S. Solar Company to Achieve 100
Gigawatts Global Shipment Milestone
Nextracker (Nasdaq: NXT), a global market leader of intelligent
solar tracker and software solutions, today announced financial
results for the fourth quarter and fiscal year ended March 31,
2024.
Full FY2024 Financial Highlights
- Revenue $2.5 billion, up 31% YoY
- GAAP net income $496 million, diluted EPS $3.37
- Adjusted EBITDA $521 million, up 150% YoY (excludes IRA 45X tax
credit benefits)
- Adjusted net income $451 million, adjusted diluted EPS $3.06
(excludes IRA 45X tax credit benefits)
- Operating cash flow of $429 million and adjusted free cash flow
of $427 million
Full FY2024 Business Highlights
- Milestone of 100-gigawatts (GW) shipped globally since company
inception
- Record backlog of over $4 billion; Robust demand in U.S. and
international markets
- Launched 3 new products: NX Horizon Hail Pro™, NX Horizon
XTR-1.5™, TrueCapture’s Zonal Diffuse™
- 20 new or expanded U.S. partner manufacturing facilities since
2021
- Global annual supply capacity over 50 gigawatts, including U.S.
capacity of over 30 gigawatts
Q4 FY2024 Financial Highlights:
- Revenue $737 million, up 42% YoY
- GAAP net income $223 million, diluted EPS $1.51
- Adjusted EBITDA $160 million, up 120% YoY (excludes IRA 45X tax
credit benefits)
“Fiscal year 2024 was a year of strong execution and significant
growth for Nextracker, and we reached a record backlog of over $4
billion that more than tripled in 2 years,” said Dan Shugar,
founder and CEO of Nextracker. “We’ve accelerated our pace of
product innovation, scaled global revenue and supply chain, more
than doubled our profits from the prior year, and exceeded all
elements of our full year guidance.”
“We also reached a tremendous milestone being the first U.S.
solar company to surpass 100 gigawatts of global shipments since
Nextracker’s inception, which underscores our sustained leadership
position in the market. As we look ahead, we’re very excited about
solar accelerating its position as the number one source of new
power generation in the U.S. and abroad.”
FY2025 Annual Guidance
- Revenue: $2.8 billion to $2.9 billion
- GAAP net income: $369 million to $399 million
- GAAP diluted EPS: $2.41 to $2.61
- Adjusted EBITDA: $600 million to $650 million, which excludes
approximately $95 million for stock-based compensation expense and
net intangible amortization
- Adjusted diluted EPS: $2.89 to $3.09, which excludes
approximately $0.48 for stock-based compensation expense and net
intangible amortization
Q4 FY2024 Earnings Call
May 14, 2024 2:00 p.m. PT / 5:00 p.m. ET Live webcast available
on investors.nextracker.com
The webcast replay, along with supporting materials, will be
available on the Nextracker IR website following the conclusion of
the event.
About Nextracker
Nextracker is a leading provider of intelligent, integrated
solar tracker and software solutions used in utility-scale and
ground-mounted distributed generation solar projects around the
world. Our products enable solar panels power plants to follow the
sun’s movement across the sky and optimize plant performance. With
power plants operating in more than 30 countries worldwide,
Nextracker offers solar tracker technologies that increase energy
production while reducing costs for significant plant ROI. For more
information, please visit www.nextracker.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to the trends for future solar
adoption and Nextracker’s outlook for fiscal 2025 and other
periods. These forward-looking statements are based on various
assumptions and on the current expectations of Nextracker’s
management. These statements involve risks and uncertainties that
could cause the actual results to differ materially from those
anticipated by these forward-looking statements, including risks
and uncertainties that are described under “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in Nextracker’s most recent Quarterly Report
on form 10-Q, Annual Report on Form 10-K and other documents that
Nextracker has filed or will file with the Securities and Exchange
Commission. There may be additional risks that Nextracker is not
aware of or that Nextracker currently believes are immaterial that
could also cause actual results to differ from the forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements. Nextracker assumes no obligation
to update these forward-looking statements.
Use of Non-GAAP Financial Information
An explanation and reconciliation of non-GAAP financial measures
to GAAP financial measures is presented in Schedules IV and V
attached to this press release, and can be found, along with other
financial information including the Earnings Presentation, on the
investor relations section of our website at
investors.nextracker.com.
Channels for Disclosure of Information
Nextracker intends to announce material information to the
public through the Nextracker Investor Relations website
investors.nextracker.com, SEC filings, press releases, public
conference calls, and public webcasts. Nextracker uses these
channels to communicate with its investors, customers, and the
public about the company, its offerings, and other issues. As such,
Nextracker encourages investors, the media, and others to follow
the channels listed above and to review the information disclosed
through such channels.
Schedule I
Nextracker Inc.
Unaudited condensed consolidated
statements of operations and comprehensive income
(In thousands, except share and
per share data)
Three-months ended
Twelve-months ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Revenue
$
736,515
$
518,395
$
2,499,841
$
1,902,137
Cost of sales
396,045
428,083
1,686,792
1,615,164
Gross profit
340,470
90,312
813,049
286,973
Selling, general and administrative
expenses
56,706
41,394
183,571
96,869
Research and development
13,090
8,336
42,360
21,619
Operating income
270,674
40,582
587,118
168,485
Interest, net
988
2,212
2,124
1,833
Other income, net
(13,378
)
(1,692
)
(23,003
)
(2,431
)
Income before income taxes
283,064
40,062
607,997
169,083
Provision for income taxes
59,864
12,532
111,782
47,750
Net income and comprehensive income
223,200
27,530
496,215
121,333
Less: Net income attributable to
Nextracker LLC prior to the reorganization transactions
—
23,941
—
117,744
Less: Net income attributable to
redeemable non-controlling interests and non-controlling
interests
18,037
2,446
189,974
2,446
Net income attributable to Nextracker
Inc.
$
205,163
$
1,143
$
306,241
$
1,143
Earnings per share attributable to the
stockholders of Nextracker Inc.
Basic
$
1.48
$
0.02
$
3.97
$
0.02
Diluted
$
1.51
$
0.02
$
3.37
$
0.02
Weighted-average shares used in computing
per share amounts:
Basic
138,389,259
45,886,065
77,067,639
45,886,065
Diluted
148,144,066
145,851,637
147,284,330
145,851,637
Schedule II
Nextracker Inc.
Unaudited condensed consolidated
balance sheets
(In thousands)
As of March 31, 2024
As of March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
474,054
$
130,008
Accounts receivable, net of allowance of
$3,872 and $1,768, respectively
382,687
271,159
Contract assets
397,123
297,960
Inventories
201,736
138,057
Other current assets
312,635
35,081
Total current assets
1,768,235
872,265
Property and equipment, net
9,236
7,255
Goodwill
265,153
265,153
Other intangible assets, net
1,546
1,321
Deferred tax assets and other assets
474,612
273,686
Total assets
$
2,518,782
$
1,419,680
LIABILITIES, REDEEMABLE INTERESTS AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
456,639
211,355
Accrued expenses
82,410
59,770
Deferred revenue
225,539
176,473
Due to related parties
—
12,239
Other current liabilities
126,898
47,589
Total current liabilities
891,486
507,426
Long-term debt
143,967
147,147
TRA liability and other liabilities
491,301
280,246
Total liabilities
1,526,754
934,819
Redeemable non-controlling interest
—
3,560,628
Total stockholders' equity (deficit)
$
992,028
$
(3,075,767
)
Total liabilities, redeemable interests
and stockholders' equity (deficit)
$
2,518,782
$
1,419,680
Schedule III
Nextracker Inc.
Unaudited condensed consolidated
statements of cash flows
(In thousands)
Twelve-months ended
March 31, 2024
March 31, 2023
Cash flows from operating activities:
Net income
$
496,215
$
121,333
Depreciation and amortization
4,363
4,626
Changes in working capital and other,
net
(71,605
)
(18,290
)
Net cash provided by operating
activities
428,973
107,669
Cash flows from investing activities:
Purchases of property and equipment
(6,160
)
(3,183
)
Proceeds from the disposition of property
and equipment
—
24
Purchase of intangible assets
(500
)
—
Net cash used in investing activities
(6,660
)
(3,159
)
Cash flows from financing activities:
Proceeds from bank borrowings and
long-term debt
—
170,000
Repayments of bank borrowings
(1
)
(20,000
)
Net proceeds from issuance of Class A
shares
552,009
693,781
Net proceeds from issuance of Class B
shares
—
76
Purchase of LLC common units from Yuma,
Inc.
(552,009
)
(693,781
)
Distribution to non-controlling interest
holders
(66,881
)
(175,000
)
Net transfers (to) from Flex
(8,335
)
24,205
Other financing activities
(3,050
)
(2,853
)
Net cash used in financing activities
(78,267
)
(3,572
)
Effect of exchange rate on cash and cash
equivalents
—
—
Net increase in cash and cash
equivalents
344,046
100,938
Cash and cash equivalents beginning of
period
130,008
29,070
Cash and cash equivalents end of
period
$
474,054
$
130,008
Twelve-months ended
Adjusted free
cash flow
March 31, 2024
March 31, 2023
Net cash provided by operating
activities
$
428,973
$
107,669
Purchases of property and equipment
(6,160
)
(3,183
)
Proceeds from the disposition of property
and equipment
—
24
Other financing
3,750
—
Adjusted free cash flow
$
426,563
$
104,510
Schedule IV
Nextracker Inc.
Reconciliation of GAAP to
Non-GAAP Financial measures
(In thousands, except
percentages, shares and per share data)
Three-months ended
Twelve-months ended
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
GAAP gross profit
$
340,470
$
90,312
$
813,049
$
286,973
Stock-based compensation expense
3,096
11,689
10,764
12,794
Intangible amortization
87
62
275
250
Advanced manufacturing tax credit vendor
rebate
$
(121,405
)
$
—
$
(121,405
)
$
—
Non-GAAP gross profit
$
222,248
$
102,063
$
702,683
$
300,017
GAAP operating income
$
270,674
$
40,582
$
587,118
$
168,485
Stock-based compensation expense
16,889
29,204
56,783
31,994
Intangible amortization
87
62
275
1,207
Legal costs and other
—
—
—
1,441
Advanced manufacturing tax credit vendor
rebate
(121,405
)
—
(121,405
)
—
Non-GAAP operating income
$
166,245
$
69,848
$
522,771
$
203,127
GAAP net income
$
223,200
$
27,530
$
496,215
$
121,333
Stock-based compensation expense
16,889
29,204
56,783
31,994
Intangible amortization
87
62
275
1,207
Adjustment for taxes
23,567
(897
)
19,527
(2,880
)
Legal costs and other
—
—
—
1,441
Advanced manufacturing tax credit vendor
rebate
(121,405
)
—
(121,405
)
—
Non-GAAP net income
$
142,338
$
55,899
$
451,395
$
153,095
GAAP Net income
$
223,200
$
27,530
$
496,215
$
121,333
Interest, net
988
2,212
2,124
1,833
Provision for income taxes
59,864
12,532
111,782
47,750
Depreciation expense
1,138
970
4,088
3,419
Intangible amortization
87
62
275
1,207
Stock-based compensation expense
16,889
29,204
56,783
31,994
Legal costs and other
—
—
—
1,441
Advanced manufacturing tax credit vendor
rebate
(121,405
)
—
(121,405
)
—
Other tax related income, net
(21,138
)
—
(28,397
)
—
Adjusted EBITDA
$
159,623
$
72,510
$
521,465
$
208,977
Net income (% of revenue)
30.3
%
5.3
%
19.8
%
6.4
%
Non-GAAP gross margin
30.2
%
19.7
%
28.1
%
15.8
%
Adjusted EBITDA (% of revenue)
21.7
%
14.0
%
20.9
%
11.0
%
Diluted earnings per share
GAAP
$
1.51
$
0.02
$
3.37
$
0.02
Earnings per share attributable to
Non-GAAP adjustments
$
(0.55
)
$
—
$
(0.30
)
$
—
Non-GAAP
$
0.96
$
0.02
$
3.06
$
0.02
Diluted shares used in computing per share
amounts
148,144,066
145,851,637
147,284,330
145,851,637
See the accompanying notes on Schedule V attached to this press
release
Schedule V
Nextracker Inc.
Notes
(1) To supplement Nextracker’s unaudited selected financial data
presented consistent with U.S. Generally Accepted Accounting
Principles (“GAAP”), the Company discloses certain non-GAAP
financial measures that exclude certain charges and gains,
including Adjusted earnings before interest, taxes, depreciation,
and amortization (“Adjusted EBITDA”), non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income, non-GAAP diluted
earnings per share, and adjusted free cash flow. These supplemental
measures exclude certain legal and other charges, stock-based
compensation expense and intangible amortization, other discrete
events as applicable and the related tax effects. These non-GAAP
measures are not in accordance with or an alternative for GAAP and
may be different from non-GAAP measures used by other companies. We
believe that these non-GAAP measures have limitations in that they
do not reflect all the amounts associated with Nextracker’s results
of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate Nextracker’s results of
operations in conjunction with the corresponding GAAP measures. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the most directly
comparable GAAP measures. We compensate for the limitations of
non-GAAP financial measures by relying upon GAAP results to gain a
complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain
items to facilitate a review of the comparability of the Company’s
operating performance on a period-to-period basis because such
items are not, in our view, related to the Company’s ongoing
operational performance. We use non-GAAP measures to evaluate the
operating performance of our business, for comparison with
forecasts and strategic plans, for calculating return on
investment, and for benchmarking performance externally against
competitors. In addition, management’s incentive compensation is
determined using certain non-GAAP measures. Since we find these
measures to be useful, we believe that investors benefit from
seeing results “through the eyes” of management in addition to
seeing GAAP results. We believe that these non-GAAP measures, when
read in conjunction with the Company’s GAAP financials, provide
useful information to investors by offering:
- the ability to make more meaningful period-to-period
comparisons of the Company’s ongoing operating results;
- the ability to better identify trends in the Company’s
underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the
Company’s underlying business; and
- an easier way to compare the Company’s operating results
against analyst financial models and operating results of
competitors that supplement their GAAP results with non-GAAP
financial measures.
The following are explanations of each of the adjustments that
we incorporate into non-GAAP measures, as well as the reasons for
excluding each of these individual items in the reconciliations of
these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges
for the estimated fair value of unvested restricted share unit and
stock option awards granted to employees and assumed in business
acquisitions. The Company believes that the exclusion of these
charges provides for more accurate comparisons of its operating
results to peer companies due to the varying available valuation
methodologies, subjective assumptions, and the variety of award
types. In addition, the Company believes it is useful to investors
to understand the specific impact stock-based compensation expense
has on its operating results.
During fiscal year 2023, the Company granted equity compensation
awards to employees under the First Amended and Restated 2022
Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”),
Vesting of awards under the Plan was contingent on a Nextracker
Initial Public Offering (IPO) which occurred on February 9, 2023.
In addition to the 2022 Nextracker Plan, prior to the Flex
spin-off, Flex maintained several stock-based incentive plans for
the benefit of certain of its officers, directors, and employees,
including the employees of Nextracker. Stock-based compensation
expense for the period prior to the Flex spin-off also include
expense recognized under the Flex plan.
Intangible amortization consists primarily of non-cash charges
that can be impacted by, among other things, the timing and
magnitude of acquisitions. The Company considers its operating
results without these charges when evaluating its ongoing
performance and forecasting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial measures.
The Company believes that the assessment of its operations
excluding these costs is relevant to its assessment of internal
operations and comparisons to the performance of its
competitors.
The 45X Advanced Manufacturing Production Tax Credit (“45X
Credit”) which was established as part of the Inflation Reduction
Act (IRA), is a per-unit tax credit earned over time for each clean
energy component domestically produced and sold by a manufacturer.
The 45X Credit was eligible for domestic parts manufactured after
January 1, 2023. The Company has executed agreements with certain
suppliers to ramp up its U.S. manufacturing footprint. These
suppliers produce 45X Credit eligible parts, including torque
tubes, and structural fasteners, that will then be incorporated
into a solar tracker. The Company has contractually agreed with
these suppliers to share a portion of the credit related to
Nextracker’s purchases. The Company accounts for these credits as a
reduction of the purchase price of the parts acquired from the
vendor and therefore a reduction of inventory until the part is
sold, at which point the Company recognizes such credit as a
reduction of cost of sales on the unaudited condensed consolidated
statements of operations and comprehensive income. During the
fourth quarter of fiscal 2024, the Company determined the amount of
the 45X vendor rebates it expects to receive in accordance with the
vendor contracts and recognized a cumulative reduction to cost of
sales of $121.4 million related to 45X Credit vendor rebates earned
on production of eligible components shipped to projects starting
on or after January 1, 2023. The Company believes that the
assessment of its operations excluding the benefit from the vendor
credits provides a more consistent comparison of its performance
given the cumulative nature of the amount recorded in the fiscal
fourth quarter.
Legal costs and other consist primarily of costs not directly
related to core business results and may include matters relating
to commercial disputes, government regulatory and compliance,
intellectual property, antitrust, tax, employment or shareholder
issues, product liability claims and other issues on a global
basis.
Adjustment for taxes relates to the tax effects of the various
adjustments that we incorporate into non-GAAP measures to provide a
more meaningful measure on non-GAAP net income and certain
adjustments related to non-recurring settlements of tax
contingencies or other non-recurring tax charges, when
applicable.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240514143342/en/
Investors, Financial Media & Press Mary Lai VP, IR &
Financial Communications Investor@nextracker.com
Media & Press Kristan Kirsh SVP, Global Marketing
Media@nextracker.com
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