-
Record annual net sales of $3.6 billion for 2015. Fourth quarter
net sales of $942 million.
-
Full year earnings per share of $5.37. Fourth quarter EPS of $1.60.
-
Cash and marketable securities of $1.8 billion, net cash of $1.5
billion.
-
Maintain 2016 EPS guidance at $4.00 to $4.50.
-
Record annual bookings of 3.4GWdc in 2015.
2016 year-to-date bookings of over 160MWdc.
TEMPE, Ariz.--(BUSINESS WIRE)--
First Solar, Inc. (Nasdaq: FSLR) today announced financial results for
the fourth quarter and year ended December 31, 2015. Net sales were $942
million in the quarter, a decrease of $329 million from the third
quarter of 2015. The decrease in net sales from the prior quarter was
primarily attributable to lower revenue from the Desert Stateline
project, which achieved initial revenue recognition in the third
quarter. In addition, sales of third party module and module plus
offerings decreased.
The Company reported fourth quarter earnings per share of $1.60,
compared to $3.41 in the prior quarter. The decrease in net income from
the third quarter was due to lower net sales, a decrease in gross
margins and higher operating expenses. In the third quarter, gross
margins and operating expenses benefited from a decrease in the
Company's module collection and recycling obligation. Partially
offsetting the decrease in net income versus the prior quarter was a
benefit from lower tax expense, which resulted from a favorable mix of
jurisdictional income.
Cash and marketable securities at the end of the fourth quarter remained
at $1.8 billion. Cash flows from operations were $53 million in the
fourth quarter.
"We exit 2015 with record annual revenues, record new bookings and
earnings per share of over five dollars," said Jim Hughes, CEO of First
Solar. "As we look back to the 2015 targets first provided to investors
at our Analyst Day nearly three years ago, we recognize that we have
achieved the efficiency, cost per watt and earnings targets outlined at
that time. We enter 2016 with tremendous technology, a strong pipeline
and an ongoing commitment to achieve the long-term objectives we have
communicated to our investors."
The Company maintained 2016 earnings per share guidance of $4.00 to
$4.50 and updated forecasted financial items as follows:
|
2016 Guidance
|
|
Prior
|
|
Current
|
|
Net Sales
|
|
$3.9B to $4.1B |
|
$3.8B to $4.0B
|
|
Gross Margin %
|
|
16% to 18%
|
|
17% to 18%
|
|
Operating Expenses
|
|
$380M to $400M |
|
Unchanged
|
|
Operating Income
|
|
$260M to $330M |
|
Unchanged
|
|
Effective Tax Rate
|
|
16% to 18%
|
|
Unchanged
|
|
Earnings per Share1 |
|
$4.00 to $4.50 |
|
Unchanged
|
|
Net Cash Balance2 |
|
$2.0B to $2.3B |
|
$1.9B to $2.2B
|
|
Operating Cash Flow3 |
|
$500M to $700M |
|
$400M to $600M
|
|
Capital Expenditures
|
|
$300M to $400M |
|
Unchanged
|
|
Shipments
|
|
2.9GW to 3.0GW
|
|
Unchanged
|
|
1 - Includes a gain of approximately $200 million, net of tax, from
the expected sale of an equity method investment and share of
8point3 earnings
|
|
2 - Cash and marketable securities less expected debt at the end of
2016
|
|
3 - Does not include approximately $450 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, February 23, 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 Tuesday, March 1, 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 8287868. 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
will 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; 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
CONSOLIDATED
BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,126,826
|
|
|
|
$
|
1,482,054
|
|
Marketable securities
|
|
|
703,454
|
|
|
|
509,032
|
|
Accounts receivable trade, net
|
|
|
500,629
|
|
|
|
135,434
|
|
Accounts receivable, unbilled and retainage
|
|
|
59,171
|
|
|
|
76,971
|
|
Inventories
|
|
|
380,424
|
|
|
|
505,088
|
|
Balance of systems parts
|
|
|
136,889
|
|
|
|
125,083
|
|
Deferred project costs
|
|
|
187,940
|
|
|
|
29,354
|
|
Notes receivable, affiliate
|
|
|
1,276
|
|
|
|
12,487
|
|
Prepaid expenses and other current assets
|
|
|
248,977
|
|
|
|
202,151
|
|
Total current assets
|
|
|
3,345,586
|
|
|
|
3,077,654
|
|
Property, plant and equipment, net
|
|
|
1,284,136
|
|
|
|
1,419,988
|
|
PV solar power systems, net
|
|
|
93,741
|
|
|
|
46,393
|
|
Project assets and deferred project costs
|
|
|
1,111,137
|
|
|
|
810,348
|
|
Deferred tax assets, net
|
|
|
357,693
|
|
|
|
313,891
|
|
Restricted cash and investments
|
|
|
333,878
|
|
|
|
407,053
|
|
Investments in unconsolidated affiliates and joint ventures
|
|
|
399,805
|
|
|
|
255,029
|
|
Goodwill |
|
|
84,985
|
|
|
|
84,985
|
|
Other intangibles, net
|
|
|
110,002
|
|
|
|
119,236
|
|
Inventories
|
|
|
107,759
|
|
|
|
115,617
|
|
Notes receivable, affiliates
|
|
|
17,887
|
|
|
|
9,127
|
|
Other assets
|
|
|
69,722
|
|
|
|
61,670
|
|
Total assets
|
|
|
$
|
7,316,331
|
|
|
|
$
|
6,720,991
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
337,668
|
|
|
|
$
|
214,656
|
|
Income taxes payable
|
|
|
1,330
|
|
|
|
1,727
|
|
Accrued expenses
|
|
|
409,452
|
|
|
|
388,156
|
|
Current portion of long-term debt
|
|
|
38,090
|
|
|
|
51,399
|
|
Billings in excess of costs and estimated earnings
|
|
|
87,942
|
|
|
|
195,346
|
|
Payments and billings for deferred project costs
|
|
|
28,580
|
|
|
|
60,591
|
|
Other current liabilities
|
|
|
57,738
|
|
|
|
88,664
|
|
Total current liabilities
|
|
|
960,800
|
|
|
|
1,000,539
|
|
Accrued solar module collection and recycling liability
|
|
|
163,407
|
|
|
|
246,307
|
|
Long-term debt
|
|
|
251,325
|
|
|
|
162,074
|
|
Other liabilities
|
|
|
392,312
|
|
|
|
320,584
|
|
Total liabilities
|
|
|
1,767,844
|
|
|
|
1,729,504
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock, $0.001 par value per share; 500,000,000 shares
authorized; 101,766,797 and
100,288,942 shares issued and
outstanding at December 31, 2015 and 2014, respectively
|
|
|
102
|
|
|
|
100
|
|
Additional paid-in capital
|
|
|
2,742,795
|
|
|
|
2,697,558
|
|
Accumulated earnings
|
|
|
2,790,110
|
|
|
|
2,243,689
|
|
Accumulated other comprehensive income
|
|
|
15,480
|
|
|
|
50,140
|
|
Total stockholders' equity
|
|
|
5,548,487
|
|
|
|
4,991,487
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
7,316,331
|
|
|
|
$
|
6,720,991
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST SOLAR, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
Net sales
|
|
|
$
|
942,324
|
|
|
$
|
1,007,993
|
|
|
|
$
|
3,578,995
|
|
|
$
|
3,391,187
|
|
|
Cost of sales
|
|
|
710,886
|
|
|
699,611
|
|
|
|
2,659,728
|
|
|
2,566,246
|
|
|
Gross profit
|
|
|
231,438
|
|
|
308,382
|
|
|
|
919,267
|
|
|
824,941
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
36,728
|
|
|
34,944
|
|
|
|
130,593
|
|
|
143,969
|
|
|
Selling, general and administrative
|
|
|
62,887
|
|
|
70,968
|
|
|
|
255,192
|
|
|
253,827
|
|
|
Production start-up
|
|
|
—
|
|
|
3,249
|
|
|
|
16,818
|
|
|
5,146
|
|
|
Total operating expenses
|
|
|
99,615
|
|
|
109,161
|
|
|
|
402,603
|
|
|
402,942
|
|
|
Operating income
|
|
|
131,823
|
|
|
199,221
|
|
|
|
516,664
|
|
|
421,999
|
|
|
Foreign currency loss, net
|
|
|
(1,887
|
)
|
|
(1,269
|
)
|
|
|
(6,868
|
)
|
|
(1,461
|
)
|
|
Interest income
|
|
|
6,072
|
|
|
4,879
|
|
|
|
22,516
|
|
|
18,030
|
|
|
Interest expense, net
|
|
|
(4,180
|
)
|
|
(553
|
)
|
|
|
(6,975
|
)
|
|
(1,982
|
)
|
|
Other (expense) income, net
|
|
|
(1,773
|
)
|
|
213
|
|
|
|
(5,502
|
)
|
|
(4,485
|
)
|
|
Income before taxes and equity in earnings of unconsolidated
affiliates
|
|
|
130,055
|
|
|
202,491
|
|
|
|
519,835
|
|
|
432,101
|
|
|
Income tax benefit (expense)
|
|
|
15,290
|
|
|
(10,545
|
)
|
|
|
6,156
|
|
|
(31,188
|
)
|
|
Equity in earnings of unconsolidated affiliates, net of tax
|
|
|
18,790
|
|
|
1,372
|
|
|
|
20,430
|
|
|
(4,949
|
)
|
|
Net income
|
|
|
$
|
164,135
|
|
|
$
|
193,318
|
|
|
|
$
|
546,421
|
|
|
$
|
395,964
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.62
|
|
|
$
|
1.93
|
|
|
|
$
|
5.42
|
|
|
$
|
3.96
|
|
|
Diluted
|
|
|
$
|
1.60
|
|
|
$
|
1.90
|
|
|
|
$
|
5.37
|
|
|
$
|
3.90
|
|
|
Weighted-average number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
101,400
|
|
|
100,246
|
|
|
|
100,886
|
|
|
100,048
|
|
|
Diluted
|
|
|
102,293
|
|
|
101,509
|
|
|
|
101,815
|
|
|
101,643
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160223006773/en/
First Solar Investors
Steve Haymore, +1 602-414-9315
stephen.haymore@firstsolar.com
or
First
Solar Media
Steve Krum, +1 602-427-3359
steve.krum@firstsolar.com
Source: First Solar, Inc.
News Provided by Acquire Media