FSLR
$165.58
First Solar
($.31)
(.19%)
Earnings Details
3rd Quarter September 2022
Thursday, October 27, 2022 4:02:00 PM
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Summary

First Solar Misses

First Solar (FSLR) reported a 3rd Quarter September 2022 loss of $0.46 per share on revenue of $628.9 million. The consensus estimate was a loss of $0.23 per share on revenue of $692.1 million. The Earnings Whisper number was for a loss of $0.11 per share. Revenue grew 7.8% on a year-over-year basis.

The company said it expects a 2022 loss of $0.65 to $0.35 per share on revenue of $2.60 billion to $2.70 billion. The company's previous guidance was results to range from a loss of $0.25 per share to earnings of $0.25 per share on revenue of $2.55 billion to $2.80 billion and the current consensus estimate is a loss of $0.12 per share on revenue of $2.48 billion for the year ending December 31, 2022.

First Solar is a leading global provider of comprehensive photovoltaic 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 solutions protect and enhance the environment.

Results
Reported Earnings
($0.46)
Earnings Whisper
($0.11)
Consensus Estimate
($0.23)
Reported Revenue
$628.9 Mil
Revenue Estimate
$692.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

First Solar, Inc. Announces Third Quarter 2022 Financial Results

  • Net sales of $629 million
  • Net loss per diluted share of $0.46
  • Cash, cash equivalents, restricted cash, and marketable securities of $1.9 billion
  • YTD net bookings of 43.7 GWDC
  • 16.6 GWDC of net bookings since prior earnings call
  • Record expected module shipment backlog of over 58 GWDC
  • Reduce FY 2022 earnings guidance primarily to reflect unforeseen logistics costs

TEMPE, Ariz., Oct. 27, 2022 (GLOBE NEWSWIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the third quarter ended September 30, 2022.

Net sales for the third quarter were $629 million, an increase of $8 million from the prior quarter, primarily due to increased module sales.

Operating loss for the third quarter was $68 million, compared to operating income of $145 million in the prior quarter. Third quarter operating income decreased primarily due to a gain on the sale of the Company’s Japan project development platform recorded in the prior quarter and higher logistics charges in the third quarter.

The Company reported a third quarter loss per diluted share of $0.46, compared to income per diluted share of $0.52 in the prior quarter.

Cash, cash equivalents, restricted cash, and marketable securities at the end of the third quarter remained at $1.9 billion, consistent with the prior quarter. Capital expenditures for Series 7 expansions were funded by operating cash flows and disbursements under the Company’s credit facility with the U.S. International Development Finance Corporation supporting the financing of the India manufacturing plant.

“Our focus continues to be on setting the stage for long-term growth, and from this point of view, 2022 has so far proven to be foundational,” said Mark Widmar, CEO of First Solar. “This year we have developed the potential for our CdTe semiconductor technology by progressing our next-generation Series 7 and bifacial platforms, set in motion plans to scale our global manufacturing capacity to over 20 GWDC by 2025, and secured record year-to-date bookings of 43.7 GWDC with deliveries extending into 2027.”

The complete 2022 guidance has been updated as follows:

 PriorCurrent
Net Sales$2.55B to $2.8B$2.6B to $2.7B
Gross Profit (1)(2)$115M to $165M$75M to $110M
Operating Expenses (3)$350M to $365M$345M to $360M
Operating Income (2)(4)(5)$5M to $70M$(30)M to $20M
Earnings (Loss) per Diluted Share$(0.25) to $0.25$(0.65) to $(0.35)
Net Cash Balance (6)$1.3B to $1.5B$1.6B to $2.0B
Capital Expenditures$850M to $1.1B$800M to $1.0B
Shipments8.9GW to 9.4GW9.1GW to 9.4GW

________________
   (1)   Includes $10 million to $15 million of underutilization losses
   (2)   Includes $45 million to $50 million of losses associated with a legacy systems business asset in Chile
   (3)   Includes $80 million to $85 million of production start-up expense
   (4)   Includes $90 million to $100 million of production start-up expense and underutilization losses
   (5)   Includes $245 million pre-tax gain related to the sale of the Japan project development and O&M platforms
   (6)   Defined as cash, cash equivalents, marketable securities, and restricted cash less expected debt at the end of 2022

The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s third quarter 2022 financial results, 2022 guidance, and financial outlook.

Conference Call Details

First Solar has scheduled a conference call for today, October 27, 2022, 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. An audio replay of the conference call will be available through Friday, November 26, 2022, and can be accessed by dialing +1 (800) 770-2030 if you are calling from within the United States or +1 (647) 362-9199 if you are calling from outside the United States. 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 30 days.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly-produced eco-efficient solar modules advancing the fight against climate change. Developed at research and development labs in California and Ohio, the Company’s advanced thin film photovoltaic (“PV”) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, 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: demand for our technology; our expected module shipment backlog; the anticipated sale of our Luz del Norte project in Chile; our financial guidance for 2022, including future financial results, operating results, net sales, gross margin, operating expenses, operating income, earnings per share, loss per share, net cash balance, capital expenditures, shipments, bookings, products and our business and financial objectives for 2022; bookings momentum; and the strength of our backlog of future expected deliveries. 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,” “contingent” 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 our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the reduction, elimination, expiration or introduction 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; the passage of legislation intended to encourage renewable energy investments through tax credits; interest rate fluctuations and both our and our customers’ ability to secure financing; changes in the exchange rates between the functional currencies of our subsidiaries and other currencies in which assets and liabilities are denominated; our ability to execute on our long-term strategic plans; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; the creditworthiness of our offtake counterparties and the ability of our offtake counterparties to fulfill their contractual obligations to 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; 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; supply chain disruption, including the availability of shipping containers, port congestion, canceled shipments by logistic providers, and the cost of fuel, demurrage, and detention charges, all of which may be exacerbated by the COVID-19 pandemic and the Russia-Ukraine conflict; 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 convert existing or construct production facilities to support new product lines; our ability to attract and retain key executive officers and associates; the severity and duration of the COVID-19 pandemic, including its potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Conditions 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.

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)

  September 30,
2022
 December 31,
2021
ASSETS    
Current assets:    
Cash and cash equivalents $1,150,982  $1,450,654 
Marketable securities  776,213   375,389 
Accounts receivable trade, net  325,421   429,436 
Accounts receivable unbilled, net  35,149   25,273 
Inventories  810,660   666,299 
Other current assets  240,325   244,192 
Total current assets  3,338,750   3,191,243 
Property, plant and equipment, net  3,124,079   2,649,587 
PV solar power systems, net  153,915   217,293 
Project assets  27,827   315,488 
Deferred tax assets, net  64,101   59,162 
Restricted marketable securities  182,208   244,726 
Goodwill  14,462   14,462 
Intangible assets, net  36,631   45,509 
Inventories  239,644   237,512 
Other assets  311,200   438,764 
Total assets $7,492,817  $7,413,746 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $188,280  $193,374 
Income taxes payable  25,771   4,543 
Accrued expenses  333,140   288,450 
Current portion of long-term debt  5,435   3,896 
Deferred revenue  235,293   201,868 
Other current liabilities  28,349   34,747 
Total current liabilities  816,268   726,878 
Accrued solar module collection and recycling liability  120,173   139,145 
Long-term debt  254,224   236,005 
Other liabilities  473,815   352,167 
Total liabilities  1,664,480   1,454,195 
Commitments and contingencies    
Stockholders’ equity:    
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 106,605,913 and 106,332,315 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively  107   106 
Additional paid-in capital  2,880,243   2,871,352 
Accumulated earnings  3,147,837   3,184,455 
Accumulated other comprehensive loss  (199,850)  (96,362)
Total stockholders’ equity  5,828,337   5,959,551 
Total liabilities and stockholders’ equity $7,492,817  $7,413,746 



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

  Three Months Ended   Nine Months Ended
  September 30,
2022
 June 30,
2022
 September 30,
2021
  September 30,
2022
 September 30,
2021
Net sales $628,933  $620,955  $583,504   $1,616,928  $2,016,058 
Cost of sales  607,951   644,155   458,924    1,607,683   1,532,593 
Gross profit (loss)  20,982   (23,200)  124,580    9,245   483,465 
Operating expenses:           
Selling, general and administrative  46,368   38,894   43,476    121,990   131,909 
Research and development  29,183   25,229   25,426    81,520   69,234 
Production start-up  19,768   13,231   2,945    40,337   16,014 
Total operating expenses  95,319   77,354   71,847    243,847   217,157 
Gain on sales of businesses, net  5,984   245,381   (1,866)   253,272   147,284 
Operating (loss) income  (68,353)  144,827   50,867    18,670   413,592 
Foreign currency loss, net  (4,859)  (2,984)  (1,018)   (12,041)  (4,613)
Interest income  9,749   2,880   1,752    14,954   3,996 
Interest expense, net  (2,991)  (3,236)  (2,958)   (9,092)  (10,577)
Other income (expense), net  4,774   (1,883)  (2,603)   2,679   2,598 
(Loss) income before taxes  (61,680)  139,604   46,040    15,170   404,996 
Income tax benefit (expense)  12,512   (83,799)  (837)   (51,788)  (67,673)
Net (loss) income $(49,168) $55,805  $45,203   $(36,618) $337,323 
            
Net (loss) income per share:           
Basic $(0.46) $0.52  $0.43   $(0.34) $3.18 
Diluted $(0.46) $0.52  $0.42   $(0.34) $3.16 
Weighted-average number of shares used in per share calculations:           
Basic  106,596   106,586   106,320    106,532   106,241 
Diluted  106,596   107,056   106,899    106,532   106,879 


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Source: First Solar, Inc.