Yingli Green Energy (YGE) Misses Q1 EPS by 8c; Updates on Alt. Financing Plans

Yingli Green Energy (NYSE: YGE) reported Q1 EPS of ($0.60), $0.08 worse than the analyst estimate of ($0.52). Revenue for the quarter came in at $364.6 million versus the consensus estimate of $353.98 million.

Total photovoltaic ("PV") module shipments1 were 508.1 MW, compared to 504.5MW in the fourth quarter of 2015.

Updates on Repayment of Medium-Term Notes and Alternative Financing Plans

As of the date of this press release, the Company's subsidiaries had medium-term notes, or MTNs, of RMB 2,057.0 million outstanding, including RMB 357.0 million of the MTNs issued in 2010, which became due on October 13, 2015; RMB1.4 billion of the MTNs issued in 2011, which became due on May 12, 2016; and RMB 300.0 million of the MTNs issued in 2012, which will become due on May 3, 2017. The Company has had meetings with the noteholders several times and is still negotiating with the noteholders about revisions to the repayment schedules of the MTNs. The Company proposed to the noteholders not to require its subsidiaries to repay the MTNs before they have the ability to do so. The Company is also discussing with the noteholders and potential funding sources about various alternative financing plans for repayment of the MTNs, such as 1) introduction of strategic investors to invest in the Company or its subsidiaries, 2) introduction of new creditors to grant new borrowings to the Company or its subsidiaries, and 3) sales of certain long-lived assets including land use rights to get additional funds. Any plan for sale of long-lived assets, if executed, may take more than one year to complete. The Company expects such alternative financing plans, if successfully completed, will further increase its liquidity and improve its debt-to-equity ratio.

Business Outlook for Second Quarter 2016

Based on current market conditions, the Company's current operating conditions, estimated production capacity and forecasted customer demand, the Company expects its PV module shipments to be in the estimated range of 580MW to 620MW for the quarter ending June 30, 2016. The Company also expects its gross margin in the second quart of 2016 to be in the estimated range of 18% to 20%.

For earnings history and earnings-related data on Yingli Green Energy (YGE) click here.

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