Delaware | 94-3008969 |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
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)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Press release dated October 28, 2015 |
SUNPOWER CORPORATION | ||
October 28, 2015 | By: | /S/ CHARLES D. BOYNTON |
Name: | Charles D. Boynton | |
Title: | Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press release dated October 28, 2015 |
($ Millions, except percentages and per-share data) | 3rd Quarter 2015 | 2nd Quarter 2015 | 3rd Quarter 2014 |
GAAP revenue | $380.2 | $381.0 | $662.7 |
GAAP gross margin | 16.5% | 18.6% | 16.4% |
GAAP net income (loss) | $(56.3) | $6.5 | $32.0 |
GAAP net income (loss) per diluted share | $(0.41) | $0.04 | $0.20 |
Non-GAAP revenue1 | $441.4 | $376.7 | $704.2 |
Non-GAAP gross margin1 | 17.7% | 17.6% | 16.7% |
Non-GAAP net income1 | $20.5 | $27.2 | $46.4 |
Non-GAAP net income per diluted share1 | $0.13 | $0.18 | $0.30 |
EBITDA1 | $54.2 | $63.6 | $85.5 |
1 | Information about SunPower's use of non-GAAP financial information is provided under "Use of Non-GAAP Financial Measures" below. |
Sept. 27, 2015 | Dec. 28, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 502,881 | $ | 956,175 | |||
Restricted cash and cash equivalents, current portion | 24,957 | 18,541 | |||||
Accounts receivable, net | 207,073 | 504,316 | |||||
Costs and estimated earnings in excess of billings | 39,069 | 187,087 | |||||
Inventories | 349,615 | 208,573 | |||||
Advances to suppliers, current portion | 73,303 | 98,129 | |||||
Project assets - plants and land, current portion | 562,699 | 101,181 | |||||
Prepaid expenses and other current assets | 279,055 | 328,845 | |||||
Total current assets | 2,038,652 | 2,402,847 | |||||
Restricted cash and cash equivalents, net of current portion | 45,764 | 24,520 | |||||
Restricted long-term marketable securities | 6,577 | 7,158 | |||||
Property, plant and equipment, net | 681,380 | 585,344 | |||||
Solar power systems leased and to be leased, net | 492,149 | 390,913 | |||||
Project assets - plants and land, net of current portion | 18,141 | 15,475 | |||||
Advances to suppliers, net of current portion | 306,554 | 311,528 | |||||
Long-term financing receivables, net | 300,236 | 269,587 | |||||
Goodwill and other intangible assets, net | 112,570 | 37,981 | |||||
Other long-term assets | 392,302 | 300,229 | |||||
Total assets | $ | 4,394,325 | $ | 4,345,582 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 444,045 | $ | 419,919 | |||
Accrued liabilities | 533,699 | 331,034 | |||||
Billings in excess of costs and estimated earnings | 79,472 | 83,440 | |||||
Short-term debt | 20,523 | 18,105 | |||||
Convertible debt, current portion | — | 245,325 | |||||
Customer advances, current portion | 27,814 | 31,788 | |||||
Total current liabilities | 1,105,553 | 1,129,611 | |||||
Long-term debt | 263,883 | 214,181 | |||||
Convertible debt, net of current portion | 694,214 | 692,955 | |||||
Customer advances, net of current portion | 131,861 | 148,896 | |||||
Other long-term liabilities | 552,120 | 555,344 | |||||
Total liabilities | 2,747,631 | 2,740,987 | |||||
Redeemable noncontrolling interests in subsidiaries | 49,833 | 28,566 | |||||
Equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 137 | 131 | |||||
Additional paid-in capital | 2,314,849 | 2,219,581 | |||||
Accumulated deficit | (619,996 | ) | (560,598 | ) | |||
Accumulated other comprehensive loss | (11,364 | ) | (13,455 | ) | |||
Treasury stock, at cost | (153,892 | ) | (111,485 | ) | |||
Total stockholders' equity | 1,529,734 | 1,534,174 | |||||
Noncontrolling interests in subsidiaries | 67,127 | 41,855 | |||||
Total equity | 1,596,861 | 1,576,029 | |||||
Total liabilities and equity | $ | 4,394,325 | $ | 4,345,582 |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Residential | $ | 163,563 | $ | 152,205 | $ | 153,947 | $ | 471,092 | $ | 474,799 | ||||||||||
Commercial | 84,983 | 62,984 | 94,830 | 197,030 | 256,421 | |||||||||||||||
Power Plant | 131,672 | 165,831 | 413,957 | 533,987 | 1,131,807 | |||||||||||||||
Total revenue | 380,218 | 381,020 | 662,734 | 1,202,109 | 1,863,027 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Residential | 126,411 | 116,979 | 126,552 | 366,162 | 384,241 | |||||||||||||||
Commercial | 72,337 | 58,842 | 81,231 | 178,059 | 220,483 | |||||||||||||||
Power Plant | 118,826 | 134,318 | 346,437 | 433,545 | 892,655 | |||||||||||||||
Total cost of revenue | 317,574 | 310,139 | 554,220 | 977,766 | 1,497,379 | |||||||||||||||
Gross margin | 62,644 | 70,881 | 108,514 | 224,343 | 365,648 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 24,973 | 20,560 | 17,291 | 66,701 | 50,618 | |||||||||||||||
Selling, general and administrative | 81,109 | 81,520 | 68,394 | 239,843 | 213,821 | |||||||||||||||
Restructuring charges | 726 | 1,749 | 188 | 6,056 | (990 | ) | ||||||||||||||
Total operating expenses | 106,808 | 103,829 | 85,873 | 312,600 | 263,449 | |||||||||||||||
Operating income (loss) | (44,164 | ) | (32,948 | ) | 22,641 | (88,257 | ) | 102,199 | ||||||||||||
Other income (expense), net | (11,949 | ) | 6,959 | (15,366 | ) | (22,735 | ) | (48,989 | ) | |||||||||||
Income (loss) before income taxes and equity in earnings of unconsolidated investees | (56,113 | ) | (25,989 | ) | 7,275 | (110,992 | ) | 53,210 | ||||||||||||
Benefit from (provision for) income taxes | (36,224 | ) | 659 | 8,320 | (37,916 | ) | 2,868 | |||||||||||||
Equity in earnings of unconsolidated investees | 5,052 | 1,864 | 1,689 | 9,107 | 5,408 | |||||||||||||||
Net income (loss) | (87,285 | ) | (23,466 | ) | 17,284 | (139,801 | ) | 61,486 | ||||||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | 30,959 | 29,975 | 14,749 | 80,403 | 49,693 | |||||||||||||||
Net income (loss) attributable to stockholders | $ | (56,326 | ) | $ | 6,509 | $ | 32,033 | $ | (59,398 | ) | $ | 111,179 | ||||||||
Net income (loss) per share attributable to stockholders: | ||||||||||||||||||||
- Basic | $ | (0.41 | ) | $ | 0.05 | $ | 0.24 | $ | (0.44 | ) | $ | 0.87 | ||||||||
- Diluted | $ | (0.41 | ) | $ | 0.04 | $ | 0.20 | $ | (0.44 | ) | $ | 0.72 | ||||||||
Weighted-average shares: | ||||||||||||||||||||
- Basic | 136,473 | 134,376 | 131,204 | 134,294 | 127,716 | |||||||||||||||
- Diluted | 136,473 | 156,995 | 167,117 | 134,294 | 158,962 |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | (87,285 | ) | $ | (23,466 | ) | $ | 17,284 | $ | (139,801 | ) | $ | 61,486 | |||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||||||||
Depreciation and amortization expense | 37,364 | 31,442 | 25,727 | 97,369 | 75,124 | |||||||||||||||
Stock-based compensation | 14,898 | 14,040 | 13,725 | 42,484 | 41,940 | |||||||||||||||
Non-cash interest expense | 517 | 571 | 5,499 | 5,768 | 15,991 | |||||||||||||||
Equity in earnings of unconsolidated investees | (5,052 | ) | (1,864 | ) | (1,689 | ) | (9,107 | ) | (5,408 | ) | ||||||||||
Excess tax benefit from stock-based compensation | (18,363 | ) | (6,155 | ) | — | (25,090 | ) | — | ||||||||||||
Deferred income taxes and other tax liabilities | 28,480 | (734 | ) | (5,327 | ) | 22,668 | (1,893 | ) | ||||||||||||
Gain on sale of residential lease portfolio to 8point3 Energy Partners LP | — | (27,915 | ) | — | (27,915 | ) | — | |||||||||||||
Other, net | 563 | 522 | 405 | 1,940 | 2,619 | |||||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||||||||||||||
Accounts receivable | 226,900 | 32,467 | (56,025 | ) | 292,102 | (45,934 | ) | |||||||||||||
Costs and estimated earnings in excess of billings | 9,380 | (2,332 | ) | (14,393 | ) | 148,018 | (14,469 | ) | ||||||||||||
Inventories | (56,427 | ) | (22,654 | ) | 21,884 | (187,153 | ) | 23,860 | ||||||||||||
Project assets | (188,073 | ) | (218,624 | ) | (31,670 | ) | (499,847 | ) | (33,338 | ) | ||||||||||
Prepaid expenses and other assets | (16,785 | ) | 54,515 | (90,581 | ) | 12,640 | (149,945 | ) | ||||||||||||
Long-term financing receivables, net | (39,160 | ) | (40,060 | ) | (22,263 | ) | (108,418 | ) | (77,109 | ) | ||||||||||
Advances to suppliers | 4,706 | 11,191 | (6,097 | ) | 29,800 | (18,578 | ) | |||||||||||||
Accounts payable and other accrued liabilities | 6,243 | (14,303 | ) | 16,837 | (59,841 | ) | (15,376 | ) | ||||||||||||
Billings in excess of costs and estimated earnings | (13,298 | ) | 3,709 | 100,020 | (3,968 | ) | 40,440 | |||||||||||||
Customer advances | (8,527 | ) | (2,383 | ) | (5,754 | ) | (21,009 | ) | (13,399 | ) | ||||||||||
Net cash used in operating activities | (103,919 | ) | (212,033 | ) | (32,418 | ) | (429,360 | ) | (113,989 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Decrease (increase) in restricted cash and cash equivalents | 748 | (9,579 | ) | (203 | ) | (27,659 | ) | (9,550 | ) |
Purchases of property, plant and equipment | (63,574 | ) | (44,214 | ) | (25,190 | ) | (132,352 | ) | (45,508 | ) | ||||||||||
Cash paid for solar power systems, leased and to be leased | (22,587 | ) | (22,429 | ) | (10,622 | ) | (64,419 | ) | (35,559 | ) | ||||||||||
Cash paid for solar power systems | — | (10,007 | ) | (4,917 | ) | (10,007 | ) | (4,917 | ) | |||||||||||
Proceeds from sales or maturities of marketable securities | — | — | — | — | 1,380 | |||||||||||||||
Proceeds from 8point3 Energy Partners LP attributable to real estate projects and residential lease portfolio | 22,754 | 341,174 | — | 363,928 | — | |||||||||||||||
Purchases of marketable securities | — | — | — | — | (30 | ) | ||||||||||||||
Cash paid for acquisitions, net of cash acquired | (59,021 | ) | — | (1,000 | ) | (59,021 | ) | (6,894 | ) | |||||||||||
Cash paid for investments in unconsolidated investees | 3,000 | (7,092 | ) | — | (4,092 | ) | (5,013 | ) | ||||||||||||
Cash paid for intangibles | (2,875 | ) | — | — | (3,401 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | (121,555 | ) | 247,853 | (41,932 | ) | 62,977 | (106,091 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of convertible debt, net of issuance costs | — | — | — | — | 395,275 | |||||||||||||||
Cash paid for repurchase of convertible debt | (79 | ) | — | (51 | ) | (324,352 | ) | (42,153 | ) | |||||||||||
Proceeds from settlement of 4.75% Bond Hedge | — | — | — | — | 68,842 | |||||||||||||||
Payments to settle 4.75% Warrants | — | — | — | — | (81,077 | ) | ||||||||||||||
Proceeds from settlement of 4.50% Bond Hedge | — | — | 4 | 74,628 | 114 | |||||||||||||||
Payments to settle 4.5% Warrants | — | (574 | ) | — | (574 | ) | — | |||||||||||||
Proceeds from issuance of non-recourse debt financing, net of issuance costs | 25,615 | 54,830 | 1,426 | 80,445 | 74,840 | |||||||||||||||
Repayment of non-recourse debt financing | (256 | ) | (429 | ) | — | (1,083 | ) | — | ||||||||||||
Proceeds from issuance of project loans, net of issuance costs | 21,356 | 100,500 | — | 211,847 | — | |||||||||||||||
Assumption of project loan by customer | — | — | — | — | (40,672 | ) | ||||||||||||||
Repayment of bank loans, project loans and other debt | (38 | ) | (232,214 | ) | (7,972 | ) | (240,198 | ) | (16,540 | ) | ||||||||||
Proceeds from residential lease financing | 2,219 | — | — | 2,219 | — | |||||||||||||||
Repayment of residential lease financing | — | (29,429 | ) | — | (39,975 | ) | (15,686 | ) |
Proceeds from sale-leaseback financing | — | 16,492 | 6,893 | 17,219 | 23,578 | |||||||||||||||
Repayment of sale-leaseback financing | — | (2,147 | ) | (581 | ) | (2,237 | ) | (1,360 | ) | |||||||||||
Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values | — | 29,300 | — | 29,300 | — | |||||||||||||||
Contributions from noncontrolling interests and redeemable noncontrolling interests | 41,796 | 46,046 | 22,534 | 133,732 | 75,312 | |||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (2,223 | ) | (2,307 | ) | (1,172 | ) | (6,790 | ) | (2,808 | ) | ||||||||||
Proceeds from exercise of stock options | 289 | 175 | 309 | 467 | 939 | |||||||||||||||
Excess tax benefit from stock-based compensation | 18,363 | 6,155 | — | 25,090 | — | |||||||||||||||
Purchases of stock for tax withholding obligations on vested restricted stock | (2,081 | ) | (1,622 | ) | (3,196 | ) | (42,407 | ) | (56,000 | ) | ||||||||||
Net cash provided by (used in) financing activities | 104,961 | (15,224 | ) | 18,194 | (82,669 | ) | 382,604 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 351 | 874 | (1,973 | ) | (4,242 | ) | (2,306 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (120,162 | ) | 21,470 | (58,129 | ) | (453,294 | ) | 160,218 | ||||||||||||
Cash and cash equivalents, beginning of period | 623,043 | 601,573 | 980,858 | 956,175 | 762,511 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 502,881 | $ | 623,043 | $ | 922,729 | $ | 502,881 | $ | 922,729 | ||||||||||
Non-cash transactions: | ||||||||||||||||||||
Assignment of financing receivables to a third party financial institution | $ | 1,053 | $ | 382 | $ | 2,163 | 2,742 | $ | 6,419 | |||||||||||
Costs of solar power systems, leased and to be leased, sourced from existing inventory | 16,867 | 15,764 | 11,905 | 47,295 | 25,808 | |||||||||||||||
Costs of solar power systems, leased and to be leased, funded by liabilities | 8,229 | 3,971 | 2,389 | 8,229 | 2,389 | |||||||||||||||
Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets | — | 5,026 | 2,064 | 6,076 | 17,333 | |||||||||||||||
Property, plant and equipment acquisitions funded by liabilities | 43,083 | 37,017 | 12,146 | 43,083 | 12,146 | |||||||||||||||
Issuance of common stock upon conversion of convertible debt | — | — | — | — | 188,263 |
Sale of residential lease portfolio in exchange for non-controlling equity interests in the 8point3 Group | — | 68,273 | — | 68,273 | — | |||||||||||||||
Acquisition of intangible assets funded by liabilities | 6,512 | — | — | 6,512 | — |
• | 8point3. In June 2015, 8point3 Energy Partners LP ("8point3 Energy Partners"), a joint YieldCo vehicle formed by the company and First Solar, Inc. ("First Solar" and, together with the company, the "Sponsors") to own, operate and acquire solar energy generation assets, completed an initial public offering (“IPO”) of Class A shares representing limited partner interests in 8point3 Energy Partners. The IPO was consummated on June 24, 2015 whereupon the Class A shares are now listed on the NASDAQ Global Select Market under the trading symbol “CAFD.” Immediately after the IPO, the company contributed a portfolio of 170 MW of its solar generation assets (the “SPWR Projects”) to 8point3 Operating Company, LLC ("OpCo"), 8point3 Energy Partners' primary operating subsidiary. In exchange for the SPWR Projects, the company received cash proceeds of $371 million as well as equity interests in several 8point3 Energy Partners affiliated entities: primarily common and subordinated units representing a 40.7% stake in OpCo and a 50.0% economic and management stake in 8point3 Holding Company, LLC (“Holdings”), the parent company of the general partner of 8point3 Energy Partners and the owner of incentive distribution rights in OpCo. Holdings, OpCo, 8point3 Energy Partners and their respective subsidiaries are referred to herein as the “8point3 Group” or “8point3.” |
• | Utility and power plant projects. The company includes adjustments related to the revenue recognition of utility and power plant projects based on the separately-identifiable components of transactions in order to reflect the substance of the transactions. This treatment is consistent with accounting rules relating to such projects under IFRS. On a GAAP basis, such projects are accounted for under U.S. GAAP real estate accounting guidance. Management calculates separate revenue and cost of revenue amounts each fiscal period in accordance with the two treatments above and the aggregate difference for the company’s affected projects is included in the relevant reconciliation tables below. Over the life of each project, cumulative revenue and gross margin will be equivalent under the two treatments; however, revenue and gross margin will generally be recognized earlier under the company’s non-GAAP treatment than under the company’s GAAP treatment. Among other factors, this is due to the attribution of non-GAAP revenue and margin to the company’s project development efforts at the time of initial project sale as required under IFRS accounting rules, whereas no separate attribution to this element occurs under U.S. GAAP real estate accounting guidance. Within each project, the relationship between the adjustments to revenue and gross margins is generally consistent. However, as the company may have multiple utility and power plant projects in progress at any given time, the relationship in the aggregate will occasionally appear otherwise. Management believes that this adjustment for utility and power plant projects enables investors to evaluate the company's revenue generation performance relative to the direct costs of revenue of its core businesses. |
• | FPSC arbitration ruling. On January 28, 2015, an arbitral tribunal of the International Court of Arbitration of the International Chamber of Commerce declared a binding partial award in the matter of an arbitration between First Philippine Electric Corporation (“FPEC”) and First Philippine Solar Corporation (“FPSC”) against SunPower Philippines Manufacturing, Ltd. (“SPML”), the company’s wholly-owned subsidiary. The tribunal found SPML in breach of its obligations under its supply agreement with FPSC, and in breach of its joint venture agreement with FPEC. The second partial and final awards received on July 17, 2015 and October 19, 2015, respectively, reduced the estimated amounts to be paid to FPEC. As a result, the company recorded its best estimate of probable loss related to this case. As this loss is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts. |
• | Stock-based compensation. Stock-based compensation relates primarily to the company’s equity incentive awards. Stock-based compensation is a non-cash expense that varies from period to period and is dependent on market forces that are difficult to predict. Due to this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation. |
• | November 2014 Restructuring Plan. In November 2014, the company approved a reorganization plan aimed towards realigning resources consistently with the company's global strategy and improving its overall operating efficiency and cost structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have historically occurred infrequently. Although SunPower has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from the company's non-GAAP financial measures as they are not reflective of ongoing operating results or contribute to a meaningful evaluation of a company's past operating performance. |
• | IPO-related costs. Costs incurred related to the IPO of 8point3 included legal, accounting, advisory, valuation, and other expenses, as well as modifications to or terminations of certain existing financing structures in preparation for the sale to 8point3. As these costs are non-recurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts. |
• | Other. The company combines amounts previously disclosed under separate captions into “Other” when amounts do not have a significant impact on the current fiscal period. Management believes that these adjustments provide investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts. |
• | Tax effect. This amount is used to present each of the adjustments described above on an after-tax basis in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. The company's non-GAAP tax amount is based on estimated cash tax expense and reserves. The company forecasts its annual cash tax liability and allocates the tax to each quarter in proportion to earnings for that period. This approach is designed to enhance investors’ ability to understand the impact of the company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense. |
• | EBITDA adjustments. When calculating EBITDA, in addition to adjustments described above, the company excludes the impact during the period of the following items: |
• | Cash interest expense, net of interest income |
• | Provision for (benefit from) income taxes |
• | Depreciation |
• | Free cash flow adjustments. When calculating free cash flow, the company includes the impact during the period of the following items: |
• | Net cash provided by (used in) investing activities |
• | Proceeds from issuance of non-recourse debt financing, net of issuance costs |
• | Repayment of non-recourse debt financing |
• | Proceeds from residential lease financing |
• | Repayment of residential lease financing |
• | Proceeds from sale-leaseback financing |
• | Repayment of sale-leaseback financing |
• | Proceeds from 8point3 Energy Partners attributable to operating leases and unguaranteed sales-type lease residual values |
• | Contributions from noncontrolling interests and redeemable noncontrolling interests |
• | Distributions to noncontrolling interests and redeemable noncontrolling interests |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
GAAP revenue | $ | 380,218 | $ | 381,020 | $ | 662,734 | $ | 1,202,109 | $ | 1,863,027 | ||||||||||
8point3 | 59,619 | — | — | 59,619 | — | |||||||||||||||
Utility and power plant projects | 1,567 | (4,313 | ) | 41,475 | (13,016 | ) | 145,961 | |||||||||||||
Non-GAAP revenue | $ | 441,404 | $ | 376,707 | $ | 704,209 | $ | 1,248,712 | $ | 2,008,988 |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
GAAP gross margin | $ | 62,644 | $ | 70,881 | $ | 108,514 | $ | 224,343 | $ | 365,648 | ||||||||||
8point3 | 18,296 | — | — | 18,296 | — | |||||||||||||||
Utility and power plant projects | (516 | ) | (4,328 | ) | (721 | ) | (16,095 | ) | 5,285 | |||||||||||
FPSC arbitration ruling | (7,500 | ) | (7,100 | ) | — | (14,600 | ) | — | ||||||||||||
Stock-based compensation expense | 4,210 | 3,259 | 3,972 | 10,035 | 10,878 | |||||||||||||||
Other | 1,088 | 3,431 | 5,919 | 10,547 | 7,342 | |||||||||||||||
Non-GAAP gross margin | $ | 78,222 | $ | 66,143 | $ | 117,684 | $ | 232,526 | $ | 389,153 | ||||||||||
GAAP gross margin (%) | 16.5 | % | 18.6 | % | 16.4 | % | 18.7 | % | 19.6 | % | ||||||||||
Non-GAAP gross margin (%) | 17.7 | % | 17.6 | % | 16.7 | % | 18.6 | % | 19.4 | % |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
GAAP net income (loss) attributable to stockholders | $ | (56,326 | ) | $ | 6,509 | $ | 32,033 | $ | (59,398 | ) | $ | 111,179 | ||||||||
8point3 | 19,371 | (4,688 | ) | — | 14,683 | — | ||||||||||||||
Utility and power plant projects | (516 | ) | (4,328 | ) | (721 | ) | (16,095 | ) | 5,285 | |||||||||||
FPSC arbitration ruling | (7,500 | ) | (7,100 | ) | — | (14,600 | ) | — | ||||||||||||
Stock-based compensation expense | 14,898 | 14,040 | 13,725 | 42,484 | 41,940 | |||||||||||||||
November 2014 restructuring plan | 985 | 1,866 | — | 6,638 | — | |||||||||||||||
IPO-related costs | 1,233 | 15,231 | — | 26,364 | — | |||||||||||||||
Other | 1,372 | 3,841 | 11,605 | 15,596 | 20,999 | |||||||||||||||
Tax effect | 46,959 | 1,797 | (10,199 | ) | 51,696 | (13,706 | ) | |||||||||||||
Non-GAAP net income attributable to stockholders | $ | 20,476 | $ | 27,168 | $ | 46,443 | $ | 67,368 | $ | 165,697 |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
Net income (loss) per diluted share | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||
GAAP net income (loss) available to common stockholders1 | $ | (56,326 | ) | $ | 7,021 | $ | 33,442 | $ | (59,398 | ) | $ | 113,770 | ||||||||
Non-GAAP net income available to common stockholders1 | $ | 20,808 | $ | 27,679 | $ | 46,994 | $ | 68,762 | $ | 169,879 | ||||||||||
Denominator: | ||||||||||||||||||||
GAAP weighted-average shares | 136,473 | 156,995 | 167,117 | 134,294 | 158,962 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock options | 18 | — | — | 32 | — | |||||||||||||||
Restricted stock units | 1,170 | — | — | 1,882 | — | |||||||||||||||
Upfront Warrants (held by Total) | 6,531 | — | — | 6,880 | — | |||||||||||||||
Warrants (under the CSO2015) | — | — | — | 1,218 | — | |||||||||||||||
0.75% debentures due 2018 | 12,026 | — | — | 12,026 | — | |||||||||||||||
0.875% debentures due 2021 | — | — | (8,203 | ) | — | (3,305 | ) | |||||||||||||
4.75% debentures due 2014 | — | — | — | — | 3,347 | |||||||||||||||
Non-GAAP weighted-average shares1 | 156,218 | 156,995 | 158,914 | 156,332 | 159,004 | |||||||||||||||
GAAP net income (loss) per diluted share | $ | (0.41 | ) | $ | 0.04 | $ | 0.20 | $ | (0.44 | ) | $ | 0.72 | ||||||||
Non-GAAP net income per diluted share | $ | 0.13 | $ | 0.18 | $ | 0.30 | $ | 0.44 | $ | 1.07 |
1 | In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.75% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share. If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-GAAP net income per diluted share. |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
GAAP net income (loss) attributable to stockholders | $ | (56,326 | ) | $ | 6,509 | $ | 32,033 | $ | (59,398 | ) | $ | 111,179 | ||||||||
8point3 | 19,371 | (4,688 | ) | — | 14,683 | — | ||||||||||||||
Utility and power plant projects | (516 | ) | (4,328 | ) | (721 | ) | (16,095 | ) | 5,285 | |||||||||||
FPSC arbitration ruling | (7,500 | ) | (7,100 | ) | — | (14,600 | ) | — | ||||||||||||
Stock-based compensation expense | 14,898 | 14,040 | 13,725 | 42,484 | 41,940 | |||||||||||||||
November 2014 Restructuring Plan | 985 | 1,866 | — | 6,638 | — | |||||||||||||||
IPO-related costs | 1,233 | 15,231 | — | 26,364 | — | |||||||||||||||
Other | 1,372 | 3,841 | 11,605 | 15,596 | 20,999 | |||||||||||||||
Cash interest expense, net of interest income | 8,348 | 8,023 | 11,476 | 27,463 | 37,358 | |||||||||||||||
Provision for (benefit from) income taxes | 36,224 | (659 | ) | (8,320 | ) | 37,916 | (2,868 | ) | ||||||||||||
Depreciation | 36,142 | 30,820 | 25,727 | 95,566 | 75,124 | |||||||||||||||
EBITDA | $ | 54,231 | $ | 63,555 | $ | 85,525 | $ | 176,617 | $ | 289,017 |
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||||||
Sept. 27, 2015 | Jun. 28, 2015 | Sept. 28, 2014 | Sept. 27, 2015 | Sept. 28, 2014 | ||||||||||||||||
Net cash used in operating activities | $ | (103,919 | ) | $ | (212,033 | ) | $ | (32,418 | ) | $ | (429,360 | ) | $ | (113,989 | ) | |||||
Net cash provided by (used in) investing activities | (121,555 | ) | 247,853 | (41,932 | ) | 62,977 | (106,091 | ) | ||||||||||||
Proceeds from issuance of non-recourse debt financing, net of issuance costs | 25,615 | 54,830 | 1,426 | 80,445 | 74,840 | |||||||||||||||
Repayment of non-recourse debt financing | (256 | ) | (429 | ) | — | (1,083 | ) | — | ||||||||||||
Proceeds from residential lease financing | 2,219 | — | — | 2,219 | ||||||||||||||||
Repayment of residential lease financing | — | (29,429 | ) | — | (39,975 | ) | (15,686 | ) | ||||||||||||
Proceeds from sale-leaseback financing | — | 16,492 | 6,893 | 17,219 | 23,578 | |||||||||||||||
Repayment of sale-leaseback financing | — | (2,147 | ) | (581 | ) | (2,237 | ) | (1,360 | ) | |||||||||||
Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values | — | 29,300 | — | 29,300 | — | |||||||||||||||
Contributions from noncontrolling interests and redeemable noncontrolling interests | 41,796 | 46,046 | 22,534 | 133,732 | 75,312 | |||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (2,223 | ) | (2,307 | ) | (1,172 | ) | (6,790 | ) | (2,808 | ) | ||||||||||
Free cash flow | $ | (158,323 | ) | $ | 148,176 | $ | (45,250 | ) | $ | (153,553 | ) | $ | (66,204 | ) |
Q4 2015 and FY 2015 GUIDANCE (in thousands except percentages and per share data) | Q4 2015 | FY 2015 |
Revenue (GAAP) | $300,000-$350,000 | $1,500,000-$1,550,000 |
Revenue (non-GAAP)1 | $1,250,000-$1,300,000 | $2,500,000-$2,550,000 |
Gross margin (GAAP) | 5%-6% | 15%-16% |
Gross margin (non-GAAP)2 | 28%-29% | 23%-24% |
Net loss per diluted share (GAAP) | ($1.25)-($1.15) | ($1.70)-($1.60) |
Net income per diluted share (non-GAAP)3 | N/A | $1.95-$2.05 |
EBITDA4 | $300,000-$325,000 | $475,000-$500,000 |
1. | Estimated non-GAAP amounts above for Q4 2015 include net adjustments that increase revenue by approximately $950 million of revenue related to 8point3. Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) revenue by approximately $1,010 million of revenue related to 8point3 and ($10) million related to utility and power plant projects. |
2. | Estimated non-GAAP amounts above for Q4 2015 include net adjustments that increase gross margin by approximately $350 million related to 8point3, $4 million related to stock-based compensation expense, and $1 million related to other items. Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) gross margin by approximately $370 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $14 million related to stock-based compensation expense, and $11 million related to other items. |
3. | Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) net loss by approximately $400 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $60 million related to stock-based compensation expense, $25 million related to IPO-related costs, $30 million related to other items, and $45 million related to tax effect. |
4. | Estimated EBITDA amounts above for Q4 2015 include net adjustments that increase net loss by approximately $385 million related to 8point3, $17 million related to stock-based compensation expense, $5 million related to other items, $10 million related to interest expense, $30 million related to income taxes and $30 million related to depreciation. Estimated EBITDA amounts above for fiscal 2015 include net adjustments that increase (decrease) net loss by approximately $400 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $60 million related to stock-based compensation expense, $25 million related to IPO-related costs, $30 million related to other items, $40 million related to interest expense, $65 million related to income taxes and $125 million related to depreciation. |
September 27, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 163,563 | $ | 84,983 | $ | 131,672 | $ | 37,152 | 22.7 | % | $ | 12,646 | 14.9 | % | $ | 12,846 | 9.8 | % | $ | (56,326 | ) | ||||||||||||||||||||||||||||||||||
8point3 | (1,311 | ) | 60,930 | — | (508 | ) | 18,804 | — | — | — | — | 993 | — | 82 | 19,371 | ||||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | 1,567 | — | — | (516 | ) | — | — | — | — | — | — | (516 | ) | ||||||||||||||||||||||||||||||||||||||||
FPSC arbitration ruling | — | — | — | (2,456 | ) | (1,299 | ) | (3,745 | ) | — | — | — | — | — | — | (7,500 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 1,541 | 917 | 1,752 | 2,172 | 8,516 | — | — | — | — | 14,898 | ||||||||||||||||||||||||||||||||||||||||||
November 2014 restructuring plan | — | — | — | — | — | — | — | — | 985 | — | — | — | 985 | ||||||||||||||||||||||||||||||||||||||||||
IPO-related costs | — | — | — | — | — | — | — | 1,233 | — | — | — | — | 1,233 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 352 | 194 | 542 | 330 | 197 | (259 | ) | 16 | — | — | 1,372 | |||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | 46,959 | — | 46,959 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 162,252 | $ | 145,913 | $ | 133,239 | $ | 36,081 | 22.2 | % | $ | 31,262 | 21.4 | % | $ | 10,879 | 8.2 | % | $ | 20,476 |
June 28, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 152,205 | $ | 62,984 | $ | 165,831 | $ | 35,226 | 23.1 | % | $ | 4,142 | 6.6 | % | $ | 31,513 | 19.0 | % | $ | 6,509 | |||||||||||||||||||||||||||||||||||
8point3 | — | — | — | — | — | — | — | — | — | (4,688 | ) | — | — | (4,688 | ) | ||||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | (4,313 | ) | — | — | (4,328 | ) | — | — | — | — | — | — | (4,328 | ) | |||||||||||||||||||||||||||||||||||||||
FPSC arbitration ruling | — | — | — | (1,969 | ) | (1,294 | ) | (3,837 | ) | — | — | — | — | — | — | (7,100 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 1,212 | 531 | 1,516 | 2,380 | 8,401 | — | — | — | — | 14,040 | ||||||||||||||||||||||||||||||||||||||||||
November 2014 Restructuring plan | — | — | — | — | — | — | — | — | 1,866 | — | — | — | 1,866 | ||||||||||||||||||||||||||||||||||||||||||
IPO-related costs | — | — | — | — | — | — | — | 6,351 | — | 8,880 | — | — | 15,231 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 941 | 637 | 1,853 | 330 | 197 | (117 | ) | — | — | — | 3,841 | |||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | 1,797 | — | 1,797 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 152,205 | $ | 62,984 | $ | 161,518 | $ | 35,410 | 23.3 | % | $ | 4,016 | 6.4 | % | $ | 26,717 | 16.5 | % | $ | 27,168 |
September 28, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 153,947 | $ | 94,830 | $ | 413,957 | $ | 27,395 | 17.8 | % | $ | 13,599 | 14.3 | % | $ | 67,520 | 16.3 | % | $ | 32,033 | |||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | 41,475 | — | — | (721 | ) | — | — | — | — | — | — | (721 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 1,007 | 440 | 2,525 | 2,022 | 7,731 | — | — | — | — | 13,725 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 174 | 75 | 5,670 | 6 | 742 | 188 | 4,750 | — | — | 11,605 | ||||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | (10,199 | ) | — | (10,199 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 153,947 | $ | 94,830 | $ | 455,432 | $ | 28,576 | 18.6 | % | $ | 14,114 | 14.9 | % | $ | 74,994 | 16.5 | % | $ | 46,443 |
September 27, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 471,092 | $ | 197,030 | $ | 533,987 | $ | 104,930 | 22.3 | % | $ | 18,971 | 9.6 | % | $ | 100,442 | 18.8 | % | $ | (59,398 | ) | ||||||||||||||||||||||||||||||||||
8point3 | (1,311 | ) | 60,930 | — | (508 | ) | 18,804 | — | — | — | — | (3,695 | ) | — | 82 | 14,683 | |||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | (13,016 | ) | — | — | (16,095 | ) | — | — | — | — | — | — | (16,095 | ) | |||||||||||||||||||||||||||||||||||||||
FPSC arbitration ruling | — | — | — | (4,425 | ) | (2,593 | ) | (7,582 | ) | — | — | — | — | — | — | (14,600 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 3,675 | 1,836 | 4,524 | 6,825 | 25,624 | — | — | — | — | 42,484 | ||||||||||||||||||||||||||||||||||||||||||
November 2014 Restructuring Plan | — | — | — | — | — | — | — | — | 6,638 | — | — | — | 6,638 | ||||||||||||||||||||||||||||||||||||||||||
IPO-related costs | — | — | — | — | — | — | — | 11,168 | — | 15,196 | — | — | 26,364 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 3,097 | 1,285 | 6,165 | 990 | 593 | (582 | ) | 4,048 | — | — | 15,596 | |||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | 51,696 | — | 51,696 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 469,781 | $ | 257,960 | $ | 520,971 | $ | 106,769 | 22.7 | % | $ | 38,303 | 14.8 | % | $ | 87,454 | 16.8 | % | $ | 67,368 |
September 28, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 474,799 | $ | 256,421 | $ | 1,131,807 | $ | 90,558 | 19.1 | % | $ | 35,938 | 14.0 | % | $ | 239,152 | 21.1 | % | $ | 111,179 | |||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | 145,961 | — | — | 5,285 | — | — | — | — | — | — | 5,285 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 2,891 | 1,471 | 6,516 | 5,731 | 25,331 | — | — | — | — | 41,940 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 547 | 267 | 6,528 | 19 | 796 | (990 | ) | 13,832 | — | — | 20,999 | |||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | (13,706 | ) | — | (13,706 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 474,799 | $ | 256,421 | $ | 1,277,768 | $ | 93,996 | 19.8 | % | $ | 37,676 | 14.7 | % | $ | 257,481 | 20.2 | % | $ | 165,697 |