December 15th, 2015

First Solar, Inc. Announces Second Quarter 2020 Financial Results

  • Net sales of $642 million
  • Net income per share of $0.35
  • Cash, restricted cash, and marketable securities of $1.6 billion, net cash of $1.2 billion
  • 0.8 GWDC of bookings since prior earnings call, including 0.5 GWDC of systems bookings
  • Strong Series 6 Production; fleet-wide capacity utilization of over 100% during May, June, and July
  • Maintain 2020 module production and capital expenditures guidance

TEMPE, Ariz., Aug. 06, 2020 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the second quarter ended June 30, 2020.

“We remain pleased with our operational performance with strong metrics across the board,” said Mark Widmar, CEO of First Solar. “Our COVID-19 response continues to center on balancing our top priority of safety with meeting our commitments to our customers. This approach, together with our associates’ dedication, and the strengths of our differentiated business model, enabled us to deliver solid financial results for the second quarter.”

Net sales for the second quarter were $642 million, an increase of $110 million from the prior quarter, primarily due to the sale of the American Kings project.

The Company reported second quarter net income per share of $0.35, compared to net income per share of $0.85 in the first quarter of 2020.

Cash, restricted cash, and marketable securities at the end of the second quarter totaled $1,642 million, an increase of $44 million from the prior quarter, primarily due to cash collections on systems projects in the United States and module segment operating cash flows. This was partially offset by capital expenditures during the quarter.

Full-Year 2020 Module Production, Operating Expenses, and Capital Expenditure Guidance

As of the date of this release, the Company and its financial results have not been materially impacted by COVID-19. However, given the significant uncertainties that remain regarding the severity and duration of the pandemic and its impact on the Company’s operations and financial results, as well as on energy and capital markets, the Company is continuing to provide limited guidance that it believes is largely within its control or within reasonable line of sight at this time.

  • Module production: 5.9 GWDC, including 5.7 GWDC of Series 6 and 0.2 GWDC of Series 4
  • Operating expenses: $345 to $365 million (including $45 to $55 million of start-up expenses)
  • Capital expenditures: $450 to $550 million

Conference Call Details

First Solar has scheduled a conference call for today, August 6, 2020 at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com.

Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s second quarter financial results and financial outlook.

An audio replay of the conference call will be available through Thursday, August 13, 2020 and can be accessed by dialing +1 (800) 585-8367 if you are calling from within the United States or +1 (416) 621-4642 if you are calling from outside the United States and entering the replay passcode 6365007. A replay of the webcast will also be available on the Investors section of the Company’s website approximately five hours after the conclusion of the call and remain available for 90 days.

About First Solar, Inc.

First Solar is a leading global provider of comprehensive photovoltaic (“PV”) solar energy solutions, 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. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: net sales, gross margin, operating expenses, operating income, earnings per share, loss per share, net cash balance, capital expenditures, shipments, bookings, production, products and our business and financial objectives for 2020. 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 and therefore speak only as of the date of this release. 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, whether as a result of new information, future developments or otherwise. 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 severity and duration of the COVID-19 pandemic, including its potential impact on our business, results of operations, and financial condition; structural imbalances in global supply and demand for PV solar modules; the market for renewable energy, including solar energy; our competitive position and other key competitive factors; reduction, elimination, or expiration of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; our ability to execute on our long-term strategic plans; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; interest rate fluctuations and both our and our customers’ ability to secure financing; the creditworthiness of our off-take counterparties and the ability of our off-take counterparties to fulfill their contractual obligations to us; the ability of our customers and counterparties to perform under their contracts with us; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; our ability to successfully develop and complete our systems business projects; our ability to convert existing production facilities to support new product lines, such as Series 6 module manufacturing; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects resulting from pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cyber-attacks or other breaches of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to attract and retain key executive officers and associates; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. You should carefully consider the risks and uncertainties described in these reports.

Contacts

First Solar Investors
investor@firstsolar.com

First Solar Media
media@firstsolar.com


FIRST SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

  June 30,
2020
 December 31,
2019
ASSETS    
Current assets:    
Cash and cash equivalents $1,052,700   $1,352,741  
Marketable securities (amortized cost of $494,000 and allowance for credit losses of $124 at June 30, 2020) 494,080   811,506  
Accounts receivable trade 291,018   476,425  
Less: allowance for credit losses (3,334) (1,386)
Accounts receivable trade, net 287,684   475,039  
Accounts receivable, unbilled and retainage 64,773   183,473  
Less: allowance for credit losses (734) —  
Accounts receivable, unbilled and retainage, net 64,039   183,473  
Inventories 518,242   443,513  
Balance of systems parts 34,536   53,583  
Project assets 591   3,524  
Prepaid expenses and other current assets 279,304   276,455  
Total current assets 2,731,176   3,599,834  
Property, plant and equipment, net 2,324,413   2,181,149  
PV solar power systems, net 465,543   476,977  
Project assets 381,559   333,596  
Deferred tax assets, net 204,942   130,771  
Restricted marketable securities (amortized cost of $243,367 and allowance for credit losses of $0 at June 30, 2020) 253,236   223,785  
Goodwill 14,462   14,462  
Intangible assets, net 61,194   64,543  
Inventories 185,028   160,646  
Other assets 451,065   329,926  
Total assets $7,072,618   $7,515,689  
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $158,800   $218,081  
Income taxes payable 16,951   17,010  
Accrued expenses 310,649   351,260  
Current portion of long-term debt 77,029   17,510  
Deferred revenue 130,575   323,217  
Accrued litigation 19,000   363,000  
Other current liabilities 34,032   28,130  
Total current liabilities 747,036   1,318,208  
Accrued solar module collection and recycling liability 140,539   137,761  
Long-term debt 387,727   454,187  
Other liabilities 570,520   508,766  
Total liabilities 1,845,822   2,418,922  
Commitments and contingencies    
Stockholders’ equity:    
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 105,960,516 and 105,448,921 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively 106   105  
Additional paid-in capital 2,848,928   2,849,376  
Accumulated earnings 2,445,022   2,326,620  
Accumulated other comprehensive loss (67,260) (79,334)
Total stockholders’ equity 5,226,796   5,096,767  
Total liabilities and stockholders’ equity $7,072,618   $7,515,689  


FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

  Three Months Ended  Six Months Ended
  June 30,
2020
 March 31,
2020
 June 30,
2019
 June 30,
2020
 June 30,
2019
Net sales $642,411   $532,124   $584,956   $1,174,535   $1,116,934  
Cost of sales 504,951   441,786   507,774   946,737   1,039,640  
Gross profit 137,460   90,338   77,182   227,798   77,294  
Operating expenses:          
Selling, general and administrative 51,770   58,587   50,934   110,357   96,286  
Research and development 22,483   25,613   24,395   48,096   46,272  
Production start-up 6,311   4,482   10,437   10,793   19,959  
Litigation loss 6,000   —   —   6,000   —  
Total operating expenses 86,564   88,682   85,766   175,246   162,517  
Operating income (loss) 50,896   1,656   (8,584) 52,552   (85,223)
Foreign currency (loss) income, net (1,299) (398) 1,726   (1,697) 1,898  
Interest income 3,674   9,330   13,510   13,004   27,769  
Interest expense, net (3,254) (6,789) (8,921) (10,043) (19,042)
Other expense, net (3,195) (2,222) (4,438) (5,417) (929)
Income (loss) before taxes and equity in earnings 46,822   1,577   (6,707) 48,399   (75,527)
Income tax (expense) benefit (10,214) 89,215   (11,744) 79,001   (10,350)
Equity in earnings, net of tax 303   (88) (97) 215   (270)
Net income (loss) $36,911   $90,704   $(18,548) $127,615   $(86,147)
           
Net income (loss) per share:          
Basic $0.35   $0.86   $(0.18) $1.21   $(0.82)
Diluted $0.35   $0.85   $(0.18) $1.20   $(0.82)
Weighted-average number of shares used in per share calculations:          
Basic 105,927   105,595   105,369   105,761   105,208  
Diluted 106,473   106,386   105,369   106,429   105,208  
           

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