First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first quarter of 2014. Net sales were $950 million in the quarter, an increase of $182 million from the fourth quarter of 2013. The sequential increase in net sales is primarily attributable to achieving revenue recognition on our Campo Verde project.
The Company reported first quarter GAAP net income per fully diluted share of $1.10, compared to $0.64 in the prior quarter. The increase in net income compared to the prior quarter was primarily due to higher net sales, project cost improvements, and lower restructuring and asset impairment charges.
Cash and Marketable Securities at the end of the first quarter were approximately $1.4 billion, a decrease of approximately $385 million compared to the end of the fourth quarter of 2013. Cash flows used in operations were $318 million in the first quarter. The use of cash in the quarter is primarily related to ongoing construction of projects which have not yet been sold.
Based on the results of the first quarter the Company is increasing full-year 2014 guidance as follows:
- Gross Margin percentage of 17-18%, compared to prior guidance of 16-18%
- Operating Income of $290 to $340 million, compared to prior guidance of $270 to $320 million
- Earnings per fully diluted share guidance of $2.40 to $2.80, compared to prior guidance of $2.20 to $2.60
- Operating cash flow guidance of $300 - $500 million, compared to prior guidance of $250 – $450 million
“In the first quarter we demonstrated significant progress towards achieving the financial and operational targets we outlined at our recent Analyst Day,” said Jim Hughes, CEO of First Solar. “We delivered strong earnings in the first quarter and are increasing our financial guidance for the year based on these results. We have also made significant progress in new bookings and continue to execute on our technology roadmap.”
First Solar has scheduled a conference call for today, May 6, 2014 at 4:30 p.m. ET to discuss this announcement. Investors may access a live webcast of this conference call by visiting 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, May 12, 2014 at 11:59 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 1522767. A replay of the webcast will be available on the Investors section of the Company’s web site 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 ("BoS") cost reduction roadmaps, restructuring, 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 photovoltaic ("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 Annual Report on Form 10-K for the year ended December 31, 2013, 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, | December 31, | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 975,194 | $ | 1,325,072 | ||||||
| Marketable securities | 404,033 | 439,102 | ||||||||
| Accounts receivable trade, net | 233,761 | 136,383 | ||||||||
| Accounts receivable, unbilled and retainage | 532,151 | 521,323 | ||||||||
| Inventories | 387,050 | 388,951 | ||||||||
| Balance of systems parts | 82,563 | 133,731 | ||||||||
| Deferred project costs | 233,075 | 556,957 | ||||||||
| Deferred tax assets, net | 64,622 | 63,899 | ||||||||
| Assets held for sale | 20,748 | 132,626 | ||||||||
| Prepaid expenses and other current assets | 102,840 | 94,720 | ||||||||
| Total current assets | 3,036,037 | 3,792,764 | ||||||||
| Property, plant and equipment, net | 1,370,537 | 1,385,084 | ||||||||
| Project assets and deferred project costs | 1,022,105 | 720,916 | ||||||||
| Deferred tax assets, net | 233,172 | 296,603 | ||||||||
| Restricted cash and investments | 304,757 | 279,441 | ||||||||
| Goodwill | 84,985 | 84,985 | ||||||||
| Other intangible assets, net | 117,117 | 117,416 | ||||||||
| Inventories | 128,129 | 129,664 | ||||||||
| Other assets | 79,514 | 76,629 | ||||||||
| Total assets | $ | 6,376,353 | $ | 6,883,502 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 186,278 | $ | 261,333 | ||||||
| Income taxes payable | 6,638 | 6,707 | ||||||||
| Accrued expenses | 321,339 | 320,077 | ||||||||
| Current portion of long-term debt | 60,656 | 60,543 | ||||||||
| Payments and billings for deferred project costs | 229,530 | 642,214 | ||||||||
| Other current liabilities | 193,493 | 297,187 | ||||||||
| Total current liabilities | 997,934 | 1,588,061 | ||||||||
| Accrued solar module collection and recycling liability | 241,390 | 225,163 | ||||||||
| Long-term debt | 138,229 | 162,780 | ||||||||
| Other liabilities | 365,411 | 404,381 | ||||||||
| Total liabilities | 1,742,964 | 2,380,385 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ equity: | ||||||||||
| Common stock, $0.001 par value per share; 500,000,000 shares authorized; 100,094,905 and 99,506,941 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 100 | 100 | ||||||||
| Additional paid-in capital | 2,646,395 | 2,646,022 | ||||||||
| Accumulated earnings | 1,994,779 | 1,882,771 | ||||||||
| Accumulated other comprehensive loss | (7,885 | ) | (25,776 | ) | ||||||
| Total stockholders’ equity | 4,633,389 | 4,503,117 | ||||||||
| Total liabilities and stockholders’ equity | $ | 6,376,353 | $ | 6,883,502 | ||||||
FIRST SOLAR, INC. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share amounts) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
| 2014 | 2013 | |||||||||
| Net sales | $ | 950,158 | $ | 755,205 | ||||||
| Cost of sales | 713,447 | 585,879 | ||||||||
| Gross profit | 236,711 | 169,326 | ||||||||
| Operating expenses: | ||||||||||
| Research and development | 38,773 | 29,931 | ||||||||
| Selling, general and administrative | 58,664 | 74,465 | ||||||||
| Production start-up | — | 1,376 | ||||||||
| Restructuring and asset impairments | — | 2,347 | ||||||||
| Total operating expenses | 97,437 | 108,119 | ||||||||
| Operating income | 139,274 | 61,207 | ||||||||
| Foreign currency (loss) gain | (579 | ) | 1,618 | |||||||
| Interest income | 4,321 | 4,947 | ||||||||
| Interest expense, net | (410 | ) | (750 | ) | ||||||
| Other income, net | (1,746 | ) | (833 | ) | ||||||
| Income before income taxes | 140,860 | 66,189 | ||||||||
| Income tax expense | 28,853 | 7,047 | ||||||||
| Net income | $ | 112,007 | 59,142 | |||||||
| Net income per share: | ||||||||||
| Basic | $ | 1.12 | $ | 0.68 | ||||||
| Diluted | $ | 1.10 | $ | 0.66 | ||||||
| Weighted-average number of shares used in per share calculations: | ||||||||||
| Basic | 99,591 | 87,206 | ||||||||
| Diluted | 101,822 | 89,377 | ||||||||
Contacts:
David Brady
+1 602-414-9315
dbrady@firstsolar.com
or
Steve
Haymore
+1 602-414-9315
stephen.haymore@firstsolar.com
or
First
Solar Media
Steve Krum
+1 602-427-3359
steve.krum@firstsolar.com
