-
Net sales of $660 million for the fourth quarter and $2.8 billion
for 2011
-
GAAP EPS loss of $4.78 in the fourth quarter and $0.46 for 2011
-
Non-GAAP EPS of $1.26 per fully diluted share in the fourth quarter
and $6.01 for 2011
-
Cash and Marketable Securities of $788 million
-
Updates 2012 Guidance
TEMPE, Ariz.--(BUSINESS WIRE)--
First Solar, Inc. (Nasdaq: FSLR) today announced financial results for
the fourth quarter and year ended December 31, 2011. Fourth quarter 2011
net sales were $660 million, a decrease of $345 million from the third
quarter of 2011, primarily due to the timing of revenue recognition in
our systems business and lower volume for module-only sales. Relative to
the fourth quarter of 2010, quarterly net sales increased $50 million
from $610 million. Net sales for 2011 were $2.8 billion, up about 8%
from fiscal year 2010.
Fourth quarter net loss per fully diluted share was $4.78, compared to a
net income per fully diluted share of $2.25 in the third quarter of 2011
and $1.80 in the fourth quarter of 2010. The fourth quarter of 2011 was
impacted by pre-tax charges of $393 million (reducing EPS by $3.90)
associated with a non-cash goodwill impairment for our components
business, $164 million (reducing EPS by $1.67) related to warranty and
cost in excess of normal warranty expense, and $60 million (reducing EPS
by $0.43) related to restructuring activities, as announced in December
2011. Excluding these items, the non-GAAP net income per fully diluted
share in the fourth quarter 2011 was $1.26. Net loss per share in 2011
was $0.46, compared to a net income per fully diluted share of $7.68 in
2010. Excluding the fourth-quarter 2011 charges listed above as well as
$46.9 million of warranty and cost in excess of normal warranty expensed
earlier this year, non-GAAP net income per fully diluted share was $6.01
for 2011. For a reconciliation of these non-GAAP measures to measures
presented in accordance with generally accepted accounting principles in
the United States ("GAAP"), please see tables below.
Cash and Marketable Securities at the end of the fourth quarter were
$788 million, down slightly from $795 million at the end of the third
quarter.
First Solar achieved several milestones in 2011:
-
Announced or completed the sale of four of the world's largest solar
projects under construction — Agua Caliente, Desert Sunlight, Antelope
Valley Solar Ranch One, and Topaz. In January 2012, First Solar
energized the first 30 MW block of the Agua Caliente project.
-
Set a world record for the efficiency of solar cells and modules using
cadmium telluride (CdTe) semiconductor technology, achieving 17.3
percent and 13.4 percent, respectively, as certified by US Department
of Energy's National Renewable Energy Labs (NREL). In January 2012,
First Solar eclipsed its own record, reaching 14.4 percent module
efficiency using commercial-scale equipment and materials.
-
Increased average module efficiency to 12.2%, up 0.6 percentage points
from the fourth quarter of 2010.
-
Reduced average module manufacturing cost to $0.73 per watt, down
$0.02 from the fourth quarter of 2010.
-
Added approximately 650 MW AC of new projects to the Company's project
pipeline, growing our pipeline to 2.7 GW AC.
-
Exceeded 5 GW of cumulative production, enough to provide clean
electricity for approximately 2.5 million homes and displace 3.3
million metric tons of CO2 annually.
"First Solar's performance in the quarter was impacted by an aggressive
competitive environment, an uncertain regulatory environment,
warranty-related charges, and restructuring costs incurred to help
position our business for the future," said Mike Ahearn, Chairman and
interim Chief Executive Officer of First Solar. "Despite these
headwinds, we continue to make strides reducing manufacturing costs,
increasing module efficiency, and successfully building out our captive
project pipeline. These improvements, combined with our recent
restructuring and strategic repositioning, enhance our competitive
position in a very challenging environment."
First Solar is updating 2012 guidance as follows:
-
reducing net sales from $3.7-$4.0 billion to $3.5-$3.8 billion;
-
reiterating earnings per fully diluted share of $3.75 to $4.25,
excluding any impairment and restructuring charges that we may be
taking in 2012; and
-
reducing operating cash flow from $0.9-$1.1 billion to $0.8-$0.9
billion.
First Solar has scheduled a conference call at 4:30 p.m. EST on February
28, 2012 to discuss the fourth quarter results and updated 2012
guidance. 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, March 5, 2012 at 11:59 p.m.
EST 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 8612954. 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 manufactures solar modules with an advanced semiconductor
technology, and is a premier provider of comprehensive photovoltaic (PV)
system solutions. The company is delivering an economically viable
alternative to fossil-fuel generation today. From raw material sourcing
through end-of-life collection and recycling, First Solar is focused on
creating value-driven renewable energy solutions that 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 the safe harbor provisions of Section 21E of the Securities Exchange
Act of 1934. The forward-looking statements in this release do not
constitute guarantees of future performance. Those statements involve a
number of factors that could cause actual results to differ materially,
including risks associated with the company's business involving the
company's products, their development and distribution, economic and
competitive factors and the company's key strategic relationships and
other risks detailed in the company's filings with the Securities and
Exchange Commission. First Solar assumes no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein.
|
FIRST SOLAR, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
605,619
|
|
|
$
|
765,689
|
|
|
Marketable securities
|
|
66,146
|
|
|
167,889
|
|
|
Accounts receivable trade, net
|
|
310,568
|
|
|
305,537
|
|
|
Accounts receivable, unbilled
|
|
533,399
|
|
|
1,482
|
|
|
Inventories
|
|
475,867
|
|
|
195,863
|
|
|
Balance of systems parts
|
|
53,784
|
|
|
4,579
|
|
|
Deferred tax assets, net
|
|
41,144
|
|
|
388
|
|
|
Prepaid expenses and other current assets
|
|
526,734
|
|
|
143,033
|
|
|
Total current assets
|
|
2,613,261
|
|
|
1,584,460
|
|
|
Property, plant and equipment, net
|
|
1,815,958
|
|
|
1,430,789
|
|
|
Project assets
|
|
374,881
|
|
|
320,140
|
|
|
Deferred tax assets, net
|
|
340,274
|
|
|
259,236
|
|
|
Marketable securities
|
|
116,192
|
|
|
180,271
|
|
|
Restricted cash and investments
|
|
200,550
|
|
|
86,003
|
|
|
Goodwill
|
|
65,444
|
|
|
433,288
|
|
|
Inventories
|
|
60,751
|
|
|
42,728
|
|
|
Other assets
|
|
190,303
|
|
|
43,488
|
|
|
Total assets
|
|
$
|
5,777,614
|
|
|
$
|
4,380,403
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
176,448
|
|
|
$
|
82,312
|
|
|
Income taxes payable
|
|
9,541
|
|
|
16,831
|
|
|
Accrued expenses
|
|
406,659
|
|
|
244,271
|
|
|
Current portion of long-term debt
|
|
44,505
|
|
|
26,587
|
|
|
Other current liabilities
|
|
336,571
|
|
|
99,676
|
|
|
Total current liabilities
|
|
973,724
|
|
|
469,677
|
|
|
Accrued solar module collection and recycling liability
|
|
167,378
|
|
|
132,951
|
|
|
Long-term debt
|
|
619,143
|
|
|
210,804
|
|
|
Other liabilities
|
|
373,506
|
|
|
112,026
|
|
|
Total liabilities
|
|
2,133,751
|
|
|
925,458
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 86,467,873 and
85,843,511 shares issued and
outstanding at December 31, 2011 and December 31, 2010,
respectively
|
|
86
|
|
|
86
|
|
|
Additional paid-in capital
|
|
2,022,743
|
|
|
1,815,420
|
|
|
Contingent consideration
|
|
—
|
|
|
1,118
|
|
|
Accumulated earnings
|
|
1,626,071
|
|
|
1,665,564
|
|
|
Accumulated other comprehensive loss
|
|
(5,037
|
)
|
|
(27,243
|
)
|
|
Total stockholders' equity
|
|
3,643,863
|
|
|
3,454,945
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
5,777,614
|
|
|
$
|
4,380,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST SOLAR, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
December 26,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,766,207
|
|
|
$
|
2,563,515
|
|
|
$
|
2,066,200
|
|
|
Cost of sales
|
|
1,794,456
|
|
|
1,378,669
|
|
|
1,021,618
|
|
|
Gross profit
|
|
971,751
|
|
|
1,184,846
|
|
|
1,044,582
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
140,523
|
|
|
94,797
|
|
|
78,161
|
|
|
Selling, general and administrative
|
|
412,541
|
|
|
321,704
|
|
|
272,898
|
|
|
Production start-up
|
|
33,620
|
|
|
19,442
|
|
|
13,908
|
|
|
Goodwill impairment
|
|
393,365
|
|
|
—
|
|
|
—
|
|
|
Restructuring
|
|
60,366
|
|
|
—
|
|
|
—
|
|
|
Total operating expenses
|
|
1,040,415
|
|
|
435,943
|
|
|
364,967
|
|
|
Operating (loss) income
|
|
(68,664
|
)
|
|
748,903
|
|
|
679,615
|
|
|
Foreign currency gain (loss)
|
|
995
|
|
|
(3,468
|
)
|
|
5,207
|
|
|
Interest income
|
|
13,391
|
|
|
14,375
|
|
|
9,735
|
|
|
Interest expense, net
|
|
(100
|
)
|
|
(6
|
)
|
|
(5,258
|
)
|
|
Other income (expense), net
|
|
665
|
|
|
2,273
|
|
|
(2,985
|
)
|
|
(Loss) income before income taxes
|
|
(53,713
|
)
|
|
762,077
|
|
|
686,314
|
|
|
Income tax (benefit) expense
|
|
(14,220
|
)
|
|
97,876
|
|
|
46,176
|
|
|
Net (loss) income
|
|
$
|
(39,493
|
)
|
|
$
|
664,201
|
|
|
$
|
640,138
|
|
|
Net (loss) income per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.46
|
)
|
|
$
|
7.82
|
|
|
$
|
7.67
|
|
|
Diluted
|
|
$
|
(0.46
|
)
|
|
$
|
7.68
|
|
|
$
|
7.53
|
|
|
Weighted-average number of shares used in per share calculations:
|
|
|
|
|
|
|
|
Basic
|
|
86,067
|
|
|
84,891
|
|
|
83,500
|
|
|
Diluted
|
|
86,067
|
|
|
86,491
|
|
|
85,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP financial measures included in the tables below are
non-GAAP net income and non-GAAP net income per share, which adjust for
the following items: Warranty and Cost in Excess of Normal Warranty
Expense, Goodwill Impairment and Restructuring. We believe the
presentation of these non-GAAP financial measures, when taken together
with the corresponding GAAP financial measures, provides meaningful
supplemental information regarding the Company's operating performance.
Our management uses these non-GAAP financial measures in assessing the
Company's performance to prior periods and investors benefit from an
understanding of these non-GAAP financial measures. The use of non-GAAP
financial measures has limitations and you should not consider these
performance measures in isolation from or as an alternative to measures
presented in accordance with GAAP such as net (loss) income and net
(loss) income per share.
Warranty and Cost in Excess of Normal Warranty Expense: Included
in our GAAP presentation of cost of sales and operating expenses,
warranty and cost in excess of normal warranty expense primarily reflect
estimated costs related to our remediation of a manufacturing excursion
that occurred between June 2008 and June 2009. We exclude this expense
from our non-GAAP measures because we do not believe they reflect
expected future costs.
Goodwill Impairment: Included in our GAAP presentation of
operating expenses, goodwill impairment primarily represents a
write-down of most of the goodwill we booked from our acquisitions of
OptiSolar in 2009 and NextLight in 2010. We exclude the impairment of
goodwill from our non-GAAP measures because it does not reflect future
performance, does not affect our cash position, and does not affect our
cash flows from operating activities.
Restructuring: Included in our GAAP presentation of operating
expenses, restructuring costs represent asset impairment and related
costs due to certain research and development activities we are no
longer pursuing outside of our core technology, as well as severance for
headcount reductions. We exclude restructuring from our non-GAAP
measures because the impairment portion of the charges does not reflect
our cash position or our cash flows from operating activities, and the
restructuring charges overall do not reflect future operating expenses,
are not indicative of our core operating performance, and are not
meaningful in comparing to our past operating performance.
|
Three Months Ended December 31, 2011 (in thousands except per
share data)
|
|
|
|
|
|
|
GAAP (1)
|
|
Warranty and Cost in Excess of
Normal Warranty
Expense
|
|
Goodwill
Impairment
Charge
|
|
Restructuring
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income
before
income
taxes
|
|
|
$
|
(481,442
|
)
|
|
|
$
|
163,525
|
(4
|
)
|
|
$
|
393,365
|
|
|
$
|
60,366
|
|
|
$
|
135,814
|
|
Income
tax
(benefit)
expense
|
|
|
(68,329
|
)
|
|
|
18,023
|
(5
|
)
|
|
53,211
|
(5
|
)
|
|
22,915
|
(5
|
)
|
|
$
|
25,820
|
|
Net (loss)
income
|
|
|
$
|
(413,113
|
)
|
|
|
$
|
145,502
|
|
|
$
|
340,154
|
|
|
$
|
37,451
|
|
|
$
|
109,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
per share
|
|
|
$
|
(4.74
|
)
|
(2
|
)
|
|
$
|
1.67
|
|
|
$
|
3.90
|
|
|
$
|
0.43
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
-average
shares
outstanding
|
|
|
87,123
|
|
(3
|
)
|
|
87,123
|
|
|
87,123
|
|
|
87,123
|
|
|
|
87,123
|
|
(1)
|
|
Except for Net (loss) income per share and Weighted-average shares
outstanding.
|
|
(2)
|
|
Reflects Non-GAAP net (loss) income per share. GAAP net (loss)
income per share was $(4.78).
|
|
(3)
|
|
Reflects Non-GAAP weighted-average shares outstanding. GAAP
weighted-average shares outstanding were 86,428.
|
|
(4)
|
|
Balance includes (i) $70.1 million in product warranty expense
reflecting the net increase in the expected number of replacement
modules required in connection with our remediation efforts for
the 2008-2009 manufacturing excursion (ii) $37.8 million for an
increase in the expected number of warranty claims primarily due
to increases related to future claims expected due to modules
installed in certain climates (iii) $31.8 million for compensation
payments to customers under certain circumstances for power lost
prior to the remediation of the customers system under our
remediation program and (iv) $23.9 million in connection with our
remediation efforts for module removal, replacement and logistical
services related to the manufacturing excursion.
|
|
(5)
|
|
The amount adjusts the provision for income taxes to reflect the
effect of the non-GAAP adjustments on non-GAAP net income.
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2011 (in thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (1)
|
|
Warranty and Cost in
Excess of Normal
Warranty
Expense
|
|
Goodwill
Impairment
Charge
|
|
Restructuring
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income
before
income
taxes
|
|
|
$
|
(53,713
|
)
|
|
|
$
|
210,414
|
(4
|
)
|
|
$
|
393,365
|
|
|
$
|
60,366
|
|
|
$
|
610,432
|
|
Income
tax
(benefit)
expense
|
|
|
(14,220
|
)
|
|
|
24,970
|
(5
|
)
|
|
53,211
|
(5
|
)
|
|
22,915
|
(5
|
)
|
|
$
|
86,876
|
|
Net (loss)
income
|
|
|
$
|
(39,493
|
)
|
|
|
$
|
185,444
|
|
|
$
|
340,154
|
|
|
$
|
37,451
|
|
|
$
|
523,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
per share
|
|
|
$
|
(0.45
|
)
|
(2
|
)
|
|
$
|
2.13
|
|
|
$
|
3.90
|
|
|
$
|
0.43
|
|
|
$
|
6.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
-average
shares
outstanding
|
|
|
87,117
|
|
(3
|
)
|
|
87,117
|
|
|
87,117
|
|
|
87,117
|
|
|
87,117
|
|
(1)
|
|
Except for Net (loss) income per share and Weighted-average shares
outstanding.
|
|
(2)
|
|
Reflects Non-GAAP net (loss) income per share. GAAP net (loss)
income per share was $(0.46).
|
|
(3)
|
|
Reflects Non-GAAP weighted-average shares outstanding. GAAP
weighted-average shares outstanding were 86,067.
|
|
(4)
|
|
Balance includes (i) $70.1 million in product warranty expense
reflecting the net increase in the expected number of replacement
modules required in connection with our remediation efforts for
the 2008-2009 manufacturing excursion (ii) $37.8 million for an
increase in the expected number of warranty claims primarily due
to increases related to future claims expected due to modules
installed in certain climates (iii) $40.3 million for compensation
payments to customers under certain circumstances for power lost
prior to the remediation of the customers system under our
remediation program and (iv) $62.2 million in connection with our
remediation efforts for module removal, replacement and logistical
services related to the manufacturing excursion.
|
|
(5)
|
|
The amount adjusts the provision for income taxes to reflect the
effect of the non-GAAP adjustments on non-GAAP net income.
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2010 (In thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (1)
|
|
Warranty and
Cost in Excess of
Normal
Warranty
Expense
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$
|
173,365
|
|
$
|
8,456
|
(1
|
)
|
|
$
|
181,821
|
|
Income tax expense
|
|
|
17,421
|
|
1,252
|
(2
|
)
|
|
$
|
18,673
|
|
Net income
|
|
|
$
|
155,944
|
|
$
|
7,204
|
|
|
$
|
163,148
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
|
$
|
1.8
|
|
$
|
0.08
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average shares outstanding
|
|
|
86,840
|
|
86,840
|
|
|
86,840
|
|
(1)
|
|
Expense in connection with our remediation efforts for module
removal, replacement and logistical services related to the
2008-2009 manufacturing excursion.
|
|
(2)
|
|
The amount adjusts the provision for income taxes to reflect the
effect of the non-GAAP adjustments on non-GAAP net income.
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2010 (In thousands, except per share
amounts)
|
|
|
|
|
GAAP (1)
|
|
Warranty and
Cost in Excess of
Normal
Warranty
Expense
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$
|
762,077
|
|
$
|
36,129
|
(1
|
)
|
|
$
|
798,206
|
|
Income tax expense
|
|
|
97,876
|
|
5,317
|
(2
|
)
|
|
$
|
103,193
|
|
Net income
|
|
|
$
|
664,201
|
|
$
|
30,812
|
|
|
$
|
695,013
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
|
$
|
7.68
|
|
$
|
0.36
|
|
|
$
|
8.04
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average shares outstanding
|
|
|
86,491
|
|
86,491
|
|
|
86,491
|
|
(1)
|
|
Balance includes (i) $30.5 million in connection with our
remediation efforts for module removal, replacement and logistical
services related to the 2008-2009 manufacturing excursion and (ii)
$5.6 million for compensation payments to customers under certain
circumstances for power lost prior to the remediation of the
customers system under our remediation program.
|
|
(2)
|
|
The amount adjusts the provision for income taxes to reflect the
effect of the non-GAAP adjustments on non-GAAP net income.
|
First Solar, Inc.
Investors:
David Brady
Vice
President, Treasury and Investor Relations
+1 (602) 414-9315
David.brady@firstsolar.com
or
Luke
Fairborn
Director, Investor Relations
+1 (602) 414-9315
Lucas.fairborn@firstsolar.com
or
Media:
Ted
Meyer
+1 (602) 427-3318
Ted.meyer@firstsolar.com
Source: First Solar, Inc.
News Provided by Acquire Media