Form 8-K FIRST SOLAR, INC. For: Nov 06
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section�13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): November 6, 2014
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FIRST SOLAR, INC.
(Exact name of registrant as specified in its charter)
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Delaware (State or other jurisdiction of incorporation) | 001-33156 (Commission File Number) | 20-4623678 (I.R.S. Employer Identification No.) | ||
350 West Washington Street
Suite�600
Tempe, Arizona 85281
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (602)�414-9300
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Not Applicable
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule�14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule�13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
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EX-99.1: Press Release of First Solar, Inc. dated November 6, 2014 |
Item�2.02����Results of Operations and Financial Condition.
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On November 6, 2014, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the third quarter ended September 30, 2014. A copy of the press release is furnished as Exhibit�99.1 to this Form 8-K.
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The information in this Form 8-K and in Exhibit�99.1 attached hereto shall not be deemed filed for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the Exchange Act ) or otherwise subject to the liability of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item�9.01����Financial Statements and Exhibits.
(d)�Exhibits. | |||
99.1 | Press Release of First Solar, Inc. dated November 6, 2014 | ||
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
� | FIRST SOLAR, INC. | ||
� | (Registrant) | ||
� | � | � | |
November 6, 2014 | By:�� | /s/ PAUL KALETA | |
� | Name:� | Paul Kaleta | |
� | Title:�� | Executive Vice President and General Counsel | |
EXHIBIT 99.1
News Release | ||||
First Solar, Inc. Announces Third Quarter 2014 Financial Results
" | Net sales of $889 million |
" | GAAP earnings per fully diluted share of $0.87 |
" | Cash and Marketable Securities of $1.1 billion, Net Cash of $0.9 billion |
" | Maintain 2014 guidance for EPS of $2.40 to $2.80 and operating cash flow of $300 - $500M |
" | 521MWdc of new bookings. Year to date bookings of 1.7GWdc� |
TEMPE, Ariz., Nov. 6, 2014 - First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the third quarter of 2014. Net sales were $889 million in the quarter, an increase of $345 million from the second quarter of 2014. The sequential increase in net sales resulted primarily from increased revenue recognition on the Desert Sunlight project.
The Company reported a third quarter GAAP earnings per fully diluted share of $0.87, compared to earnings of $0.04 in the prior quarter. The increase in net income compared to the prior quarter was due to higher profit from the Desert Sunlight project and other systems projects under construction, partially offset by an increase in operating expenses. The sequential increase in net income was also due to a one-time income tax benefit in the third quarter of $0.26 per fully diluted share.
Cash and marketable securities at the end of the third quarter were approximately $1.1 billion, a decrease of approximately $234 million compared to the prior quarter. Cash flows used in operations were $47 million in the third quarter. The reduction in cash and marketable securities during the quarter was due to the construction of multiple utility scale power plants which have not yet been sold. The Company continues to construct these projects while determining the optimal sales strategy for these projects.
The Company maintained its full year 2014 earnings per share guidance of $2.40 to $2.80 and operating cash flow guidance of $300 to $500 million. Other financial guidance items have been updated as shown in the table below.
2014 Guidance Update | Prior | Current | ||
Net Sales | $3.7B to $4.0B | $3.6B to $3.9B | ||
Gross Margin (%) | 18% to 19% | 19% to 20% | ||
Operating Expenses | $380M to $395M | $390M to $400M | ||
Operating Income | $290M to $340M | $300M to $340M | ||
Effective Tax Rate | 15% to 20% | 18% to 20%* | ||
Earnings Per Share | $2.40 to $2.80 | Unchanged* | ||
Operating Cash Flow | $300M to $500M | Unchanged | ||
Capital Expenditures | $300M to $350M | $250M to $300M | ||
Production | 1.8GW to 1.9GW | Unchanged | ||
*Excludes impact of $0.26 per share one-time tax benefit in Q314 | ||||
Following the project delays experienced in the prior quarter, our third quarter earnings have improved, and we continue to make progress towards our financial targets for the year said Jim Hughes, CEO of First Solar. Our year to date book-to-bill ratio is well above our objective of a one-to-one ratio, and we are on track to meet or exceed our bookings goal for the year.
First Solar has scheduled a conference call for today, November 6, 2014 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.
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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 Thursday, November 13, 2014 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 5135099. A replay of the webcast will be available on the Investors section of the Companys 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 Companys 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 Solars 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.
Contacts
First Solar Investors |
David Brady |
+1 602-414-9315 |
or |
Steve Haymore |
+1 602-414-9315 |
First Solar Media |
Steve Krum |
+1 602-427-3359 |
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FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
� � | September 30, 2014 | December 31, 2013 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 622,523 | $ | 1,325,072 | ||||
Marketable securities | 492,875 | 439,102 | ||||||
Accounts receivable trade, net | 282,783 | 136,383 | ||||||
Accounts receivable, unbilled and retainage | 538,913 | 521,323 | ||||||
Inventories | 445,201 | 388,951 | ||||||
Balance of systems parts | 101,120 | 133,731 | ||||||
Deferred project costs | 546,409 | 556,957 | ||||||
Deferred tax assets, net | 62,372 | 63,899 | ||||||
Assets held for sale | 20,728 | 132,626 | ||||||
Note receivable, affiliate | 7,829 | |||||||
Prepaid expenses and other current assets | 132,273 | 94,720 | ||||||
Total current assets | 3,253,026 | 3,792,764 | ||||||
Property, plant and equipment, net | 1,384,429 | 1,385,084 | ||||||
PV solar power systems, net | 47,901 | |||||||
Project assets and deferred project costs | 645,477 | 720,916 | ||||||
Deferred tax assets, net | 228,661 | 296,603 | ||||||
Restricted cash and investments | 489,388 | 279,441 | ||||||
Goodwill | 84,985 | 84,985 | ||||||
Other intangible assets, net | 119,448 | 117,416 | ||||||
Inventories | 113,111 | 129,664 | ||||||
Other assets | 73,528 | 76,629 | ||||||
Total assets | $ | 6,439,954 | $ | 6,883,502 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 219,997 | $ | 261,333 | ||||
Income taxes payable | 5,346 | 6,707 | ||||||
Accrued expenses | 348,602 | 320,077 | ||||||
Current portion of long-term debt | 54,607 | 60,543 | ||||||
Billings in excess of costs and estimated earnings | 133,779 | 117,766 | ||||||
Payments and billings for deferred project costs | 100,264 | 642,214 | ||||||
Other current liabilities | 56,077 | 179,421 | ||||||
Total current liabilities | 918,672 | 1,588,061 | ||||||
Accrued solar module collection and recycling liability | 247,441 | 225,163 | ||||||
Long-term debt | 163,646 | 162,780 | ||||||
Other liabilities | 316,978 | 404,381 | ||||||
Total liabilities | 1,646,737 | 2,380,385 | ||||||
Commitments and contingencies | ||||||||
Stockholders equity: | ||||||||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 100,209,077 and 99,506,941 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 100 | 100 | ||||||
Additional paid-in capital | 2,682,199 | 2,646,022 | ||||||
Accumulated earnings | 2,087,731 | 1,882,771 | ||||||
Accumulated other comprehensive income (loss) | 23,187 | (25,776 | ) | |||||
Total stockholders equity | 4,793,217 | 4,503,117 | ||||||
Total liabilities and stockholders equity | $ | 6,439,954 | $ | 6,883,502 | ||||
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FIRST SOLAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
� | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
� � | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales | $ | 889,310 | $ | 1,265,587 | $ | 2,383,821 | $ | 2,540,552 | ||||||||
Cost of sales | 700,023 | 901,553 | 1,865,098 | 1,867,094 | ||||||||||||
Gross profit | 189,287 | 364,034 | 518,723 | 673,458 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 37,593 | 34,984 | 109,025 | 95,879 | ||||||||||||
Selling, general and administrative | 66,528 | 63,870 | 182,859 | 204,600 | ||||||||||||
Production start-up | 1,406 | 1,897 | 2,768 | |||||||||||||
Restructuring and asset impairments | 57,276 | 62,004 | ||||||||||||||
Total operating expenses | 105,527 | 156,130 | 293,781 | 365,251 | ||||||||||||
Operating income | 83,760 | 207,904 | 224,942 | 308,207 | ||||||||||||
Foreign currency gain (loss) | 169 | (705 | ) | (389 | ) | (155 | ) | |||||||||
Interest income | 4,297 | 4,197 | 13,151 | 12,549 | ||||||||||||
Interest expense, net | (89 | ) | (275 | ) | (1,429 | ) | (1,900 | ) | ||||||||
Other expense, net | (6,821 | ) | (2,433 | ) | (11,737 | ) | (2,762 | ) | ||||||||
Income before income taxes | 81,316 | 208,688 | 224,538 | 315,939 | ||||||||||||
Income tax (benefit) expense | (7,108 | ) | 13,650 | 19,579 | 28,161 | |||||||||||
Net income | $ | 88,424 | $ | 195,038 | $ | 204,959 | $ | 287,778 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.88 | $ | 1.98 | $ | 2.05 | $ | 3.14 | ||||||||
Diluted | $ | 0.87 | $ | 1.94 | $ | 2.02 | $ | 3.08 | ||||||||
Weighted-average number of shares used in per share calculations: | ||||||||||||||||
Basic | 100,197 | 98,720 | 99,981 | 91,751 | ||||||||||||
Diluted | 101,415 | 100,378 | 101,686 | 93,517 | ||||||||||||
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