SAN JOSE, Calif., Feb. 13, 2019 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR) today announced financial results for its fourth quarter ended December 30, 2018.
Fourth Quarter Highlights
($ Millions, except percentages and per-share data) | 4th Quarter 2018 | 3rd Quarter 2018 | 4th Quarter 20173 | FY 2018 | FY 20173 |
GAAP revenue | $456.8 | $428.3 | $651.1 | $1,726.1 | $1,794.0 |
GAAP gross margin | (1.7%) | 2.3% | (2.0%) | (17.2%)4 | (1.0%) |
GAAP net loss | $(158.2) | $(89.8) | $(572.7) | $(811.1)4 | $(929.9) |
GAAP net loss per diluted share | $(1.12) | $(0.64) | $(4.1) | $(5.76)4 | $(6.67) |
Non-GAAP revenue1 | $525.4 | $443.4 | $824.0 | $1,814.9 | $2,128.6 |
Non-GAAP gross margin1,2 | 6.9% | 4.7% | 11.9% | 7.5% | 11.1% |
Non-GAAP net income (loss)1,2 | $(30.3) | $(40.9) | $35.8 | $(101.4) | $(34.4) |
Non-GAAP net income (loss) per diluted share1,2 | $(0.21) | $(0.29) | $0.25 | $(0.72) | $(0.25) |
Adjusted EBITDA1,2 | $13.6 | $6.7 | $100.3 | $111.2 | $189.7 |
Net debt | $589.6 | $1,254.4 | $1,169.8 | $589.6 | $1,169.8 |
1Information about SunPower's use of non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP Financial Measures" below. |
2Excludes polysilicon costs related to its above market polysilicon contracts |
3The company adopted the new revenue recognition standard effective January 1, 2018. The prior periods presented here have been restated to reflect adoption of the new standard. |
4Includes impairment charges of approximately $369.2 million for legacy manufacturing assets of which $355.1 million is recorded in GAAP gross margin in second quarter 2018. |
"I'm pleased we were able to post solid financial performance for the quarter while achieving a number of strategic milestones including re-segmenting our business structure to improve transparency and accountability, the initial production of our NGT cell and panel technology, as well as further delevering our balance sheet through the successful deconsolidation of our residential lease portfolio," said Tom Werner, SunPower CEO and chairman of the board.
SunPower Energy Services (SPES) ? North American Residential and Commercial Businesses
"We executed well in our North American distributed generation (DG) business as demand remained strong in the fourth quarter. In particular, our U.S. residential business saw annual deployment growth of more than 15 percent. We saw increased demand for our complete residential Equinox solution , further traction for our loan product, and expanded our leadership position in the new homes channel with partnerships with 17 of the top 20 U.S. new home builders. Finally, we continue to see strong interest in our residential storage and services offerings and remain on plan to launch our Equinox residential storage solution this year.
"In Commercial, we remain the market share leader. For the quarter, we posted record bookings from both new and repeat customers including Cabot and Walmart. With the addition of these orders, we now have material revenue and volume visibility for the second half of 2019 with more than 80 percent of our 2019 commercial forecast already in backlog.
"We also continue to see significant interest in our Helix solar-plus-storage solution with attach rates of 35 percent. With the continuing success of the rollout of our Helix storage solution, we see significant opportunity in bringing this industry leading technology to our commercial installed base of more than 1.3 gigawatts (GW).
SunPower Technologies (SPT) ? Manufacturing, International DG / Power Plant panel businesses
"First, we were pleased to appoint Jeff Waters as our new SPT business unit CEO during the quarter. Jeff brings a wealth of technology, operational and international business expertise to our team and we look forward to working together as he leads our manufacturing, research and development (R&D) and international downstream activities.
"We made significant progress on NGT as we started initial customer shipments for this industry leading technology in the fourth quarter of 2018. Additionally, we have already started the process to ramp our second manufacturing line which will more than double our NGT name plate capacity to approximately 250 MW by the end of 2019. Also, we recently began production of our P-Series technology at our manufacturing facility in Oregon and expect to ship up to 150 MW of P-Series from this facility this year, expanding our DG product offering in the U.S.
"SPT demand also remained solid in the quarter as we saw continued strength in our EMEA DG business and increased bookings in our international power plant supply agreement business. With these orders, we now have more than 750 MW of our 2019 international business in backlog.
Business Segmentation
"Finally, we materially completed our corporate transformation efforts during the quarter. As we have mentioned, over the last year, we have successfully simplified our business model, delevered our balance sheet and reduced operating expenses. We focused our investments in those areas that we believe offer the best opportunities for growth including our industry leading NGT cell and panel technology, solar-plus-storage solutions for our DG business, our digital platform to improve customer service and satisfaction, as well our energy services offerings," Werner concluded.
"Strong execution enabled us to achieve our strategic initiatives for the quarter," said Manavendra Sial, SunPower chief financial officer. "With the sale and deconsolidation of our residential lease portfolio during the quarter, we have simplified our financial statements and reduced our net debt by more than 50 percent to less than $600 million by the end of the year. Additionally, we improved our cash position and prudently managed our operating expenses while further investing in our growth initiatives. With the completion of our strategic transformation, DG-focused strategy and commitment to technological innovation, we are well positioned for sustainable profitability in 2019."
Fourth quarter fiscal year 2018 non-GAAP results exclude net adjustments that, in the aggregate, improved non-GAAP earnings by $127.9 million, including $81.3 million related to impairment and sale of residential lease assets, $37.2 million related to cost of above-market polysilicon, $11.0 million related to sale-leaseback transactions, $6.4 million related to stock-based compensation expense, $1.9 million related to intangibles, $1.3 million related to business reorganization costs and, partially offset by $6.6 million related to tax effect, $3.1 million acquisition-related and other costs, $1.1 million related to restructuring expense, and $0.5 million related to utility and power plant projects.
Financial Outlook
The company expects financial performance to improve on a quarterly basis throughout fiscal year 2019 with performance weighted towards the second half of the year given its record commercial bookings in the fourth quarter of 2018 as well as normal seasonality in its residential business. The company also expects fiscal year 2019 adjusted EBITDA to increase approximately 60 percent on a normalized basis adjusting for non-controlling interest due to the sale of its residential lease portfolio, as well as the impact of Section 201 tariffs paid during the year, both of which will not occur in 2019. The company believes that the change in its leasing business structure will improve lease economics starting in 2019. The company will provide additional details on its 2019 financial guidance at its Capital Markets Day on March 27, 2019.
Specifically, the company's first quarter fiscal year 2019 GAAP and non-GAAP guidance is as follows: On a GAAP basis, revenue of $290 million to $330 million, gross margin of (3) percent to 0 percent and a net loss of $70 million to $50 million. On a non-GAAP basis, the company expects revenue of $350 million to $390 million, gross margin of 3 percent to 5 percent, Adjusted EBITDA of $(40) million to $(20) million and MW deployed in the range of 360 MW to 400 MW.
The company's fiscal year 2019 GAAP and non-GAAP guidance is as follows: revenue of $1.8 billion to $1.9 billion on a GAAP basis and $1.9 billion to $2.0 billion on a non-GAAP basis, GW deployed in the range of 1.9 GW to 2.1 GW, non-GAAP operational expenses of less than $280 million, capital expenditures of approximately $75 million and Adjusted EBITDA of $80 million to $110 million.
Capital Markets Day
SunPower will discuss its strategic outlook as well as provide additional details related to its fiscal year 2019 financial performance at its Capital Markets Day to be held on March 27, 2019 in New York City starting at 9:00 a.m. Eastern Time. Please note that the entire event will be webcast and relevant materials will be posted to the company's website prior to the event. To register for and listen to the webcast, investors are encouraged to visit the company's Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm prior to the event.
The company will also host a conference call for investors this afternoon to discuss its fourth quarter 2018 performance at 1:30 p.m. Pacific Time. The call will be webcast and can be accessed from SunPower's website at http://investors.sunpower.com/events.cfm.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release. Please note that the company has posted supplemental information and slides related to its fourth quarter 2018 performance on the Events and Presentations section of SunPower's Investor Relations page at http://investors.sunpower.com/events.cfm. The capacity of power plants in this release is described in approximate MW on a direct current (dc) basis unless otherwise noted.
About SunPower
As one of the world's most innovative and sustainable energy companies, SunPower Corporation (NASDAQ:SPWR) provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower's more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and superb performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) our plans and expectations regarding manufacturing expansion, and production goals and ramps, including the timing of our ramp of NGT production and planned product shipments, and plans for P-Series manufacturing and product shipments from our facility in Oregon; (b) the impact of our corporate transformation initiatives, including efforts to delever our balance sheet, simplify our financial statements, and re-segment our business structure, on our transparency, profitability, financial performance, and results of operations; (c) our expectations and plans regarding demand, revenue and volume, market opportunity, product focus and adoption, and market share growth; (d) our expected areas of focus, including with respect to specific products and offerings and lines of business; (e) our expectations regarding our future financial performance, including with respect to EBITDA, margins, profitability, and tariff impact; (f) predictions regarding trends and seasonality in our overall results and those of our business lines; (g) our positioning for future success and profitability and long-term competitiveness, and our ability to achieve our financial and strategic goals; (h) our plans for a Capital Markets Day and the topics we expect to discuss; (i) our first quarter fiscal 2019 guidance, including GAAP revenue, gross margin, and net loss, as well as non-GAAP revenue, gross margin, Adjusted EBITDA, and MW deployed, and related assumptions; and (j) fiscal year 2019 guidance, including expected quarterly performance improvement and weighting, GAAP revenue, gross margin, and net loss, as well as non-GAAP GW deployed, Adjusted EBITDA, non-GAAP revenue, gross margin, Adjusted EBITDA and MW deployed, and related assumptions. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (3) changes in public policy, including the imposition and applicability of tariffs; (4) regulatory changes and the availability of economic incentives promoting use of solar energy; (5) challenges inherent in constructing certain of our large projects, including regulatory hurdles and other difficulties that may arise; (6) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (7) fluctuations in our operating results; (8) appropriately sizing our manufacturing capacity and containing manufacturing and logistics difficulties that could arise; (9) challenges managing our acquisitions, joint ventures and partnerships, including our ability to successfully manage acquired assets and supplier relationships; (10) challenges in executing transactions key to our strategic plans; and (11) our ability to successfully implement actions to complete our restructuring plan and associated initiatives, including plans to streamline our business and focus. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
©2019 SunPower Corporation. All rights reserved. SUNPOWER, the SUNPOWER logo, EQUINOX and HELIX are trademarks or registered trademarks of SunPower Corporation in the U.S. and other countries as well.
SUNPOWER CORPORATION | |||
CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
(Unaudited) | |||
Dec. 30, | Dec. 31, | ||
2018 | 2017 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 309,407 | $ 435,097 | |
Restricted cash and cash equivalents, current portion | 41,762 | 43,709 | |
Accounts receivable, net | 175,605 | 204,966 | |
Contract assets | 58,994 | 35,074 | |
Inventories | 308,146 | 352,829 | |
Advances to suppliers, current portion | 37,878 | 30,689 | |
Project assets - plants and land, current portion | 10,796 | 103,063 | |
Prepaid expenses and other current assets | 131,183 | 146,209 | |
Total current assets | 1,073,771 | 1,351,636 | |
Restricted cash and cash equivalents, net of current portion | 12,594 | 65,531 | |
Restricted long-term marketable securities | 5,955 | 6,238 | |
Property, plant and equipment, net | 839,871 | 1,147,845 | |
Solar power systems leased and to be leased, net | 92,557 | 369,218 | |
Advances to suppliers, net of current portion | 133,694 | 185,299 | |
Long-term financing receivables, net | 19,592 | 330,672 | |
Other intangible assets, net | 12,582 | 25,519 | |
Other long-term assets | 162,033 | 546,698 | |
Total assets | $ 2,352,649 | $ 4,028,656 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 325,550 | $ 406,902 | |
Accrued liabilities | 235,252 | 231,771 | |
Contract liabilities, current portion | 104,130 | 101,723 | |
Short-term debt | 40,074 | 58,131 | |
Convertible debt, current portion | - | 299,685 | |
Total current liabilities | 705,006 | 1,098,212 | |
Long-term debt | 40,528 | 430,634 | |
Convertible debt, net of current portion | 818,356 | 816,454 | |
Contract liabilities, net of current portion | 99,509 | 133,390 | |
Other long-term liabilities | 839,136 | 842,342 | |
Total liabilities | 2,502,535 | 3,321,032 | |
Redeemable noncontrolling interests in subsidiaries | - | 15,236 | |
Equity: | |||
Preferred stock | - | - | |
Common stock | 141 | 140 | |
Additional paid-in capital | 2,463,370 | 2,442,513 | |
Accumulated deficit | (2,480,988) | (1,669,897) | |
Accumulated other comprehensive loss | (4,150) | (3,008) | |
Treasury stock, at cost | (187,069) | (181,539) | |
Total stockholders' equity | (208,696) | 588,209 | |
Noncontrolling interests in subsidiaries | 58,810 | 104,179 | |
Total equity | (149,886) | 692,388 | |
Total liabilities and equity | $ 2,352,649 | $ 4,028,656 | |
SUNPOWER CORPORATION | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(In thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | |||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||
Revenue: | |||||||||||
SunPower Energy Services revenue | $ 265,427 | $ 263,576 | $ 259,260 | $ 1,045,614 | $ 910,206 | ||||||
SunPower Technologies revenue | 277,256 | 289,630 | 541,415 | 1,069,010 | 1,350,790 | ||||||
Intersegment eliminations | (85,846) | (124,943) | (149,541) | (388,539) | (466,949) | ||||||
Total revenue | 456,837 | 428,263 | 651,134 | 1,726,085 | 1,794,047 | ||||||
Cost of revenue: | |||||||||||
SunPower Energy Services cost of revenue | 245,301 | 217,196 | 249,688 | 889,410 | 820,628 | ||||||
SunPower Technologies cost of revenue | 296,872 | 307,527 | 553,222 | 1,496,909 | 1,430,539 | ||||||
Intersegment eliminations | (77,765) | (106,337) | (138,999) | (363,153) | (438,475) | ||||||
Total cost of revenue | 464,408 | 418,386 | 663,911 | 2,023,166 | 1,812,692 | ||||||
Gross profit (loss) | (7,571) | 9,877 | (12,777) | (297,081) | (18,645) | ||||||
Operating expenses: | |||||||||||
Research and development | 15,481 | 15,898 | 20,400 | 81,705 | 82,247 | ||||||
Sales, general and administrative | 53,839 | 76,069 | 72,765 | 260,111 | 278,645 | ||||||
Restructuring charges | (1,107) | 3,923 | 2,769 | 17,497 | 21,045 | ||||||
Impairment and sale of residential lease assets | 81,086 | 53,537 | 624,335 | 251,984 | 624,335 | ||||||
Gain on business divestitures | - | (59,347) | - | (59,347) | - | ||||||
Total operating expenses | 149,299 | 90,080 | 720,269 | 551,950 | 1,006,272 | ||||||
Operating loss | (156,870) | (80,203) | (733,046) | (849,031) | (1,024,917) | ||||||
Other income (expense), net: | |||||||||||
Interest income | 777 | 1,087 | 139 | 3,057 | 2,100 | ||||||
Interest expense | (30,214) | (25,973) | (24,851) | (108,011) | (90,288) | ||||||
Other, net | 6,539 | (3,642) | 1,468 | 55,314 | (87,645) | ||||||
Other expense, net | (22,898) | (28,528) | (23,244) | (49,640) | (175,833) | ||||||
Loss before income taxes and equity in earnings (losses) of unconsolidated investees | (179,768) | (108,731) | (756,290) | (898,671) | (1,200,750) | ||||||
Benefit from (provision for) income taxes | 8,379 | (3,680) | 2,870 | (1,010) | 3,944 | ||||||
Equity in earnings (losses) of unconsolidated investees | (757) | (1,500) | (146) | (17,815) | 25,938 | ||||||
Net loss | (172,146) | (113,911) | (753,566) | (917,496) | (1,170,868) | ||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | 13,972 | 24,085 | 180,915 | 106,405 | 241,747 | ||||||
Net loss attributable to stockholders | $ (158,174) | $ (89,826) | $ (572,651) | $ (811,091) | $ (929,121) | ||||||
Net loss per share attributable to stockholders: | |||||||||||
- Basic | $ (1.12) | $ (0.64) | $ (4.10) | $ (5.76) | $ (6.67) | ||||||
- Diluted | $ (1.12) | $ (0.64) | $ (4.10) | $ (5.76) | $ (6.67) | ||||||
Weighted-average shares: | |||||||||||
- Basic | 141,136 | 141,027 | 139,613 | 140,825 | 139,370 | ||||||
- Diluted | 141,136 | 141,027 | 139,613 | 140,825 | 139,370 | ||||||
SUNPOWER CORPORATION | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | |||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||
Cash flows from operating activities: | |||||||||
Net loss | $ (172,146) | $ (113,911) | $ (753,566) | $ (917,497) | $ (1,170,868) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation and amortization | 24,060 | 24,743 | 54,292 | 127,204 | 185,283 | ||||
Stock-based compensation | 6,266 | 6,390 | 9,294 | 26,353 | 34,674 | ||||
Non-cash interest expense | 3,213 | 3,871 | 5,837 | 15,346 | 18,390 | ||||
Dividend from equity method investees | - | - | 7,859 | 3,947 | 30,091 | ||||
Equity in (earnings) losses of unconsolidated investees | 756 | 1,501 | 145 | 17,815 | (25,939) | ||||
Gain on sale of equity investments, net | 2,212 | (543) | (5,346) | (48,356) | (5,346) | ||||
Gain on sale of cost method investment | (5,840) | - | - | (5,840) | - | ||||
Gain on business divestitures | - | (59,347) | - | (59,347) | - | ||||
Deferred income taxes | (9,868) | 1,575 | (8,541) | (6,862) | (6,966) | ||||
Unrealized loss on equity investments with readily determinable fair value | 150 | 6,225 | - | 6,375 | - | ||||
Impairment of equity method investment | - | - | 7,993 | - | 89,564 | ||||
Impairment of property, plant and equipment | - | - | - | 369,168 | |||||
Loss on sale and impairment of residential lease assets | 81,086 | 53,537 | 624,335 | 251,984 | 624,335 | ||||
Other, net | (1,059) | (3,294) | (3,881) | (6,796) | 1,299 | ||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 18,916 | (15,057) | (40,469) | (174) | (1,191) | ||||
Contract assets | (5,495) | (2,639) | 7,104 | (43,509) | 10,660 | ||||
Inventories | 64,617 | (27,942) | 28,776 | (39,174) | (38,236) | ||||
Project assets | 48,652 | (20,226) | 71,536 | 39,512 | 2,393 | ||||
Prepaid expenses and other assets | (17,161) | 5,616 | 14,103 | 22,763 | 110,530 | ||||
Long-term financing receivables, net | (31,006) | (42,775) | (32,308) | (182,937) | (123,674) | ||||
Advances to suppliers | 15,236 | 14,059 | 16,075 | 44,417 | 68,767 | ||||
Accounts payable and other accrued liabilities | (58,230) | 10,387 | 4,281 | (127,286) | (216,349) | ||||
Contract liabilities | 9,328 | (3,904) | 40,373 | (30,495) | 145,171 | ||||
Net cash used in operating activities | (26,313) | (161,734) | 47,892 | (543,389) | (267,412) | ||||
Cash flows from investing activities: | |||||||||
Purchases of property, plant and equipment | (7,198) | (12,346) | (12,177) | (44,906) | (69,791) | ||||
Cash paid for solar power systems, leased and to be leased | (12,953) | (16,971) | (22,007) | (68,612) | (86,539) | ||||
Cash paid for solar power systems | (37,468) | (904) | (88,306) | (41,808) | (126,548) | ||||
Cash paid for acquisitions, net of cash acquired | (17,000) | - | - | (17,000) | - | ||||
Purchases of marketable securities | - | - | - | - | (1,306) | ||||
Dividend from equity method investees | - | - | 882 | 12,952 | 3,773 | ||||
Proceeds from business divestiture | 10,000 | 13,257 | - | 23,257 | - | ||||
Proceeds from sale of cost method investment | 33,402 | - | - | 33,402 | - | ||||
Proceeds from sale of equity method investments | 2,540 | - | 5,954 | 420,306 | 5,954 | ||||
Proceeds from sale of equity interest in residential lease portfolio, net of transaction costs | (28,004) | - | - | (28,004) | - | ||||
Cash paid for investments in unconsolidated investees | (626) | - | (2,680) | (14,687) | (18,627) | ||||
Net cash provided by (used in) investing activities | (57,307) | (16,964) | (118,334) | 274,900 | (293,084) | ||||
Cash flows from financing activities: | |||||||||
Proceeds from bank loans and other debt | 60,199 | 51,018 | 56,104 | 227,676 | 339,253 | ||||
Repayment of 0.75% debentures due 2018, bank loans and other debt | (59,023) | (56,702) | (54,755) | (535,252) | (358,317) | ||||
Proceeds from issuance of non-recourse residential financing, net of issuance costs | 5,079 | 120,099 | 6,435 | 192,287 | 89,612 | ||||
Repayment of non-recourse residential financing | (2,427) | (5,032) | (2,133) | (17,358) | (6,888) | ||||
Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | 43,526 | 34,388 | 55,591 | 151,204 | 196,628 | ||||
Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | (2,742) | (6,594) | (5,200) | (21,918) | (18,228) | ||||
Proceeds from issuance of non-recourse power plant and commercial financing, net of issuance costs | 75,754 | 27,980 | 209,222 | 126,020 | 527,897 | ||||
Repayment of non-recourse power plant and commercial financing | (26,383) | (221) | (27,463) | (31,282) | (176,069) | ||||
Contributions from noncontrolling interests attributable to power plant and commercial projects | - | - | - | - | 800 | ||||
Purchases of stock for tax withholding obligations on vested restricted stock | (281) | (349) | (366) | (5,530) | (4,756) | ||||
Net cash (used in) provided by financing activities | 93,702 | 164,587 | 237,435 | 85,847 | 589,932 | ||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 1,296 | 1,896 | (609) | 2,068 | 689 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 11,378 | (12,215) | 166,384 | (180,574) | 30,125 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 352,385 | 364,600 | 377,953 | 544,337 | 514,212 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ 363,763 | $ 352,385 | $ 544,337 | $ 363,763 | $ 544,337 | ||||
Non-cash transactions: | |||||||||
Assignment of residential lease receivables to third parties | $ - | $ - |
$ - | $ - | $ 129 | ||||
Stock consideration received due to business divestiture |
$ - | $ 42,600 | $ - | $ 42,600 | $ - | ||||
Costs of solar power systems, leased and to be leased, sourced from existing inventory | $ 5,975 | $ 8,769 | $ 15,296 | $ 36,384 | $ 57,688 | ||||
Costs of solar power systems, leased and to be leased, funded by liabilities | $ 3,631 | $ 4,903 | $ 5,527 | $ 3,631 | $ 5,527 | ||||
Costs of solar power systems under sale-leaseback financing arrangements, sourced from project assets | $ 54,967 | $ 14,628 | $ 44,490 | $ 87,307 | $ 110,375 | ||||
Property, plant and equipment acquisitions funded by liabilities | $ 8,214 | $ 11,453 | $ 15,706 | $ 46,863 | $ 15,706 | ||||
Contractual obligations satisfied with inventory | $ 7,924 | $ 8,035 | $ 14,820 | $ 56,840 | $ 34,675 | ||||
Accounts receivable due to business divestiture | $ - | $ 10,000 | $ - | $ - | $ - | ||||
Acquisition of noncontrolling interests funded by Mezzanine Loan proceeds | $ - | $ 12,400 | $ - | $ 12,400 | $ - | ||||
Assumption of debt by buyer upon sale of equity interest | $ - | $ - | $ - | $ 27,321 | $ - | ||||
Assumption of mezzanine loan by SunStrong in connection with sale of residential lease assets | $ 106,958 | $ - | $ - | $ 106,958 | $ - | ||||
Assumption of back leverage loans by SunStrong in connection with sale of residential lease assets | $ 454,630 | $ - | $ - | $ 454,630 | $ - | ||||
Acquisition funded by liabilities | $ 9,000 | $ - | $ - | $ 9,000 | $ - | ||||
Retained interest in SunStrong lease portfolio | $ 9,750 | $ - | $ - | $ 9,750 | $ - | ||||
Net reclassification of cash proceeds offset by project assets in connection with the deconsolidation of assets sold to the 8point3 Group | $ - | $ - | $ - | $ - | $ 4,918 | ||||
Assumption of debt by buyer upon sale of projects | $ - | $ - | $ 196,104 | $ - | $ 196,104 | ||||
Receivables in connection with sale of residential lease portfolio | $ 12,510 | $ - | $ - | $ 12,510 | $ - | ||||
Supplemental information: | |||||||||
Cash paid for interest, net of amount capitalized | $ 54,996 | $ - | $ - |
$ 54,996 | $ 59,885 | ||||
Cash paid for income taxes | $ 6,710 | $ - | $ - | $ 6,710 | $ 12,795 |
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures, as described below. The specific non-GAAP measures listed below are: revenue; gross profit/margin; net income (loss); net income (loss) per diluted share; and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in each of these key elements of the company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, each of these non-GAAP financial measures provides investors with another method to assess the company's operating results in a manner that is focused on its ongoing, core operating performance, absent the effects of these items. Management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Many of the analysts covering the company also use these non-GAAP measures in their analyses. Given management's use of these non-GAAP measures, the company believes these measures are important to investors in understanding the company's operating results as seen through the eyes of management. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; the non-GAAP measures should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
Non-GAAP revenue includes adjustments relating to 8point3, legacy utility and power plant projects, sale-leaseback transactions and unrealized loss on equity investments, each as described below. In addition to those same adjustments, Non-GAAP gross profit/margin includes adjustments relating to impairment of property, plant and equipment, impairment and sale of residential lease assets, cost of above-market polysilicon, stock-based compensation, amortization of intangible assets, depreciation of idle equipment, and non-cash interest expense, each as described below. In addition to those same adjustments, non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share are adjusted for adjustments relating to gain on business divestiture, acquisition-related and other costs, business reorganization costs, restructuring expense, IPO-related costs, the tax effect of these non-GAAP adjustments, and other items, each as described below. In addition to the same adjustments as non-GAAP net income (loss), Adjusted EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for (benefit from) income taxes, and depreciation.
Non-GAAP Adjustments Based on International Financial Reporting Standards ("IFRS")
The company's non-GAAP results include adjustments to recognize revenue and profit under IFRS that are consistent with the adjustments made in connection with the company's reporting process as part of its status as a consolidated subsidiary of Total S.A., a foreign public registrant which reports under IFRS. Differences between GAAP and IFRS reflected in the company's non-GAAP results are further described below. In these situations, management believes that IFRS enables investors to better evaluate the company's revenue and profit generation performance, and assists in aligning the perspectives of our management and noncontrolling shareholders with those of Total S.A., our controlling shareholder.
Other Non-GAAP Adjustments
For more information about these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP Measures to Non-GAAP Measures" set forth at the end of this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.
SUNPOWER CORPORATION | ||||||||||
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||
(In thousands, except percentages and per share data) | ||||||||||
(Unaudited) | ||||||||||
Adjustments to Revenue: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | ||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||
GAAP revenue | $ 456,837 | $ 428,263 | $ 651,134 | $ 1,726,085 | $ 1,794,047 | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | - | (8,588) | 7,198 | |||||
Legacy utility and power plant projects | (691) | (361) | 9,024 | (4,145) | 54,659 | |||||
Sale-leaseback transactions | 69,254 | 15,529 | 163,837 | 101,581 | 272,654 | |||||
Non-GAAP revenue | $ 525,400 | $ 443,431 | $ 823,995 | $ 1,814,933 | $ 2,128,558 | |||||
Adjustments to Gross Profit (Loss) / Margin: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | ||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||
GAAP gross profit (loss) | $ (7,571) | $ 9,877 | $ (12,777) | $ (297,081) | $ (18,645) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | (62) | (8,337) | (2,656) | |||||
Legacy utility and power plant projects | (569) | 162 | (3,538) | (1,244) | 41,746 | |||||
Sale-leaseback transactions | 6,132 | (2,492) | 25,839 | 242 | 31,094 | |||||
Other adjustments: | ||||||||||
Impairment and sale of residential lease assets | (2,163) | (4,679) | - | (14,847) | - | |||||
Impairment of property, plant and equipment | - | - | - | 355,107 | - | |||||
Cost of above-market polysilicon | 37,231 | 14,628 | 81,804 | 87,228 | 166,906 | |||||
Stock-based compensation expense | 1,236 | 1,239 | 2,145 | 4,996 | 5,489 | |||||
Amortization of intangible assets | 1,889 | 2,142 | 2,505 | 8,966 | 10,206 | |||||
Depreciation of idle equipment | - | - | 2,300 | 721 | 2,300 | |||||
Non-cash interest expense | - | - | 2 | - | 32 | |||||
Non-GAAP gross profit | $ 36,185 | $ 20,877 | $ 98,218 | $ 135,751 | $ 236,472 | |||||
GAAP gross margin (%) | -1.7% | 2.3% | -2.0% | -17.2% | -1.0% | |||||
Non-GAAP gross margin (%) | 6.9% | 4.7% | 11.9% | 7.5% | 11.1% | |||||
Adjustments to Net income (loss): | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | ||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||
GAAP net loss attributable to stockholders | $ (158,174) | $ (89,826) | $ (572,651) | $ (811,091) | $ (929,121) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | 8,130 | (8,485) | 78,990 | |||||
Legacy utility and power plant projects | (569) | 162 | (3,538) | (1,244) | 41,746 | |||||
Sale-leaseback transactions | 10,984 | 2,258 | 28,491 | 18,802 | 39,318 | |||||
Unrealized loss on equity investments | 150 | 6,225 | - | 6,375 | - | |||||
Other adjustments: | ||||||||||
Impairment and sale of residential lease assets | 81,273 | 50,735 | 473,709 | 227,507 | 473,709 | |||||
Impairment of property, plant and equipment | - | - | - | 369,168 | - | |||||
Cost of above-market polysilicon | 37,231 | 14,628 | 81,804 | 87,228 | 166,906 | |||||
Stock-based compensation expense | 6,424 | 6,390 | 9,294 | 28,215 | 34,674 | |||||
Amortization of intangible assets | 1,889 | 2,142 | 8,769 | 8,966 | 19,048 | |||||
Depreciation of idle equipment | - | - | 2,300 | 721 | 2,300 | |||||
Gain on business divestitures | - | (59,347) | - | (59,347) | - | |||||
Acquisition-related and other costs | (3,142) | 20,869 | - | 17,727 | - | |||||
Business reorganization costs | 1,330 | - | - | 1,330 | - | |||||
Non-cash interest expense | 10 | 13 | 25 | 68 | 128 | |||||
Restructuring expense | (1,107) | 3,923 | 2,769 | 17,497 | 21,045 | |||||
IPO-related costs | - | - | - | - | (82) | |||||
Tax effect | (6,605) | 906 | (3,338) | (4,797) | 16,932 | |||||
Non-GAAP net income (loss) attributable to stockholders | $ (30,306) | $ (40,922) | $ 35,764 | $ (101,360) | $ (34,407) | |||||
Adjustments to Net income (loss) per diluted share: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | ||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||
Net income (loss) per diluted share | ||||||||||
Numerator: | ||||||||||
GAAP net loss available to common stockholders1 | $ (158,174) | $ (89,826) | $ (572,651) | $ (811,091) | $ (929,121) | |||||
Non-GAAP net income (loss) available to common stockholders1 | $ (30,306) | $ (40,922) | $ 35,764 | $ (101,360) | $ (34,407) | |||||
Denominator: | ||||||||||
GAAP weighted-average shares | 141,136 | 141,027 | 139,613 | 140,825 | 139,370 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | - | - | 1,570 | - | - | |||||
Upfront warrants (held by Total) | - | - | 49 | - | - | |||||
Non-GAAP weighted-average shares1 | 141,136 | 141,027 | 141,232 | 140,825 | 139,370 | |||||
GAAP net loss per diluted share | $ (1.12) | $ (0.64) | $ (4.10) | $ (5.76) | $ (6.67) | |||||
Non-GAAP net income (loss) per diluted share | $ (0.21) | $ (0.29) | $ 0.25 | $ (0.72) | $ (0.25) | |||||
1In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.0% 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 (loss) per diluted share. | ||||||||||
Adjusted EBITDA: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 30, | Sep. 30, | Dec. 31, | Dec. 30, | Dec. 31, | ||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||
GAAP net loss attributable to stockholders | $ (158,174) | $ (89,826) | $ (572,651) | $ (811,091) | $ (929,121) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | 8,130 | (8,485) | 78,990 | |||||
Legacy utility and power plant projects | (569) | 162 | (3,538) | (1,244) | 41,746 | |||||
Sale-leaseback transactions | 10,984 | 2,258 | 28,491 | 18,802 | 39,318 | |||||
Unrealized loss on equity securities | 150 | 6,225 | - | 6,375 | - | |||||
Other adjustments: | ||||||||||
Impairment and sale of residential lease assets | 81,273 | 50,735 | 473,709 | 227,507 | 473,709 | |||||
Impairment of property, plant and equipment | - | - | - | 369,168 | - | |||||
Cost of above-market polysilicon | 37,231 | 14,628 | 81,804 | 87,228 | 166,906 | |||||
Stock-based compensation expense | 6,424 | 6,390 | 9,294 | 28,215 | 34,674 | |||||
Amortization of intangible assets | 1,889 | 2,142 | 8,769 | 8,966 | 19,048 | |||||
Depreciation of idle equipment | - | - | 2,300 | 721 | 2,300 | |||||
Gain on business divestitures | - | (59,347) | - | (59,347) | - | |||||
Acquisition-related and other costs | (3,142) | 20,869 | - | 17,727 | - | |||||
Business reorganization costs | 1,330 | - | - | 1,330 | - | |||||
Non-cash interest expense | 10 | 13 | 25 | 68 | 128 | |||||
Restructuring expense | (1,107) | 3,923 | 2,769 | 17,497 | 21,045 | |||||
IPO-related costs | - | - | - | - | (82) | |||||
Cash interest expense, net of interest income | 24,584 | 20,136 | 22,058 | 86,394 | 79,965 | |||||
Provision for (benefit from) income taxes | (8,379) | 3,680 | (2,870) | 1,010 | (3,943) | |||||
Depreciation | 21,054 | 24,754 | 41,960 | 120,367 | 164,970 | |||||
Adjusted EBITDA | $ 13,558 | $ 6,742 | $ 100,250 | $ 111,208 | $ 189,653 | |||||
Q1 2019 and FY 2019 GUIDANCE
(in thousands except percentages) | Q1 2019 | FY 2019 |
Revenue (GAAP) | $290,000-$330,000 | $1,800,000-$1,900,000 |
Revenue (non-GAAP)1 | $350,000-$390,000 | $1,900,000-$2,000,000 |
Gross margin (GAAP) | (3)% - 0% | N/A |
Gross margin (non-GAAP)2 | 3% - 5% | N/A |
Net loss (GAAP) | $50,000-$70,000 | $150,000-$175,000 |
Adjusted EBITDA3 | $(40,000)-$(20,000) | $80,000-$110,000 |
1. | Estimated non-GAAP amounts above for Q1 2019 and fiscal 2019 include net adjustments that increase revenue by approximately $60 million and $100 million, respectively related to construction services for residential customer contracts. |
2. | Estimated non-GAAP amounts above for Q1 2019 include net adjustments that increase (decrease) gross margin by approximately $(1) million related to construction services for residential customer contracts, $22 million related to cost of above-market polysilicon, $2 million related to stock-based compensation expense, and $1 million related to amortization of intangible assets. |
3. | Estimated Adjusted EBITDA amounts above for Q1 2019 include net adjustments that decrease (increase) net loss by approximately $(12) million related to construction services for residential customer contracts, $(40) million related to sale-leaseback transactions, $22 million related to cost of above-market polysilicon, $9.5 million related to impairment of lease assets, $8 million related to stock-based compensation expense, $15 million related to depreciation, $1 million related to amortization of intangible assets, $13 million related to restructuring, $10.5 million related to interest expense, and $3 million related to income taxes. Estimated non-GAAP amounts above for fiscal 2019 include net adjustments that decrease (increase) net loss by approximately $(10) million related to construction services for residential customer contracts, $(40) million related to sale-leaseback transactions, $(6) million related to impairment of property, plant and equipment, $120 million related to cost of above-market polysilicon, $9.5 million related to impairment of lease assets, $31 million related to stock-based compensation expense, $60 million related to depreciation, $7 million related to amortization of intangible assets, $32 million related to restructuring, $36 million related to interest expense, and $18 million related to income taxes. |
SUNPOWER CORPORATION | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||||||||||||||||
December 30, 2018 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | |||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment | SPES | SPT | Intersegment | Research and | Sales, general | Restructuring | Impairment and | Gain on business | Other income | Benefit from | Equity in | Gain (Loss) | Net income (loss) | ||||||||||||||||||||||
GAAP | $ 265,427 | $ 277,256 | $ (85,846) | $ 20,126 | 7.6% | $ (19,616) | -7.1% | $ (8,081) | $ (158,174) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | (240) | (451) | - | (472) | (97) | - | - | - | - | - | - | - | - | - | - | (569) | |||||||||||||||||||||
Sale-leaseback transactions | 69,254 | - | - | 6,113 | 19 | - | - | - | - | - | - | 4,852 | - | - | - | 10,984 | |||||||||||||||||||||
Unrealized loss on equity investments | - | - | - | - | - | - | - | - | - | - | - | 150 | - | - | - | 150 | |||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Impairment and sale of residential lease assets | - | - | - | (2,163) | - | - | - | - | - | 81,086 | - | - | - | - | 2,350 | 81,273 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | 2,055 | 35,176 | - | - | - | - | - | - | - | - | - | - | 37,231 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 610 | 626 | - | 907 | 4,281 | - | - | - | - | - | - | - | 6,424 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 616 | 1,273 | - | - | - | - | - | - | - | - | - | - | 1,889 | |||||||||||||||||||||
Business reorganization costs | - | 1,330 | - | - | - | - | - | - | - | 1,330 | |||||||||||||||||||||||||||
Acquisition-related and other costs | - | - | - | - | - | - | - | (3,142) | - | - | - | - | - | - | - | (3,142) | |||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | 10 | - | - | - | - | - | - | - | 10 | ||||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | (1,107) | - | - | - | - | - | - | (1,107) | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | (6,605) | - | - | (6,605) | |||||||||||||||||||||
Non-GAAP | $ 334,441 | $ 276,805 | $ (85,846) | $ 26,885 | 8.0% | $ 17,381 | 6.3% | $ (8,081) | $ (30,306) | ||||||||||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | |||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment | SPES | SPT | Intersegment | Research and | Sales, general | Restructuring charges | Impairment and sale of residential lease asset | Gain on business divestitures | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Gain (Loss) attributable to non-controlling interests | Net income (loss) | ||||||||||||||||||||||
GAAP | $ 263,576 | $ 289,630 | $ (124,943) | $ 46,380 | 17.6% | $ (17,897) | -6.2% | $ (18,606) | $ (89,826) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | (114) | (247) | - | 141 | 21 | - | - | - | - | - | - | - | - | - | - | 162 | |||||||||||||||||||||
Sale-leaseback transactions | 15,529 | - | - | (2,054) | (438) | - | - | - | - | - | - | 4,750 | - | - | - | 2,258 | |||||||||||||||||||||
Unrealized loss on equity investments | - | - | - | - | - | - | - | - | - | - | - | 6,225 | - | - | - | 6,225 | |||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Impairment and sale of residential lease assets | - | - | - | (4,679) | - | - | - | - | - | 53,537 | - | - | - | - | 1,877 | 50,735 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | (2,336) | 16,964 | - | - | - | - | - | - | - | - | - | - | 14,628 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 598 | 641 | - | 806 | 4,345 | - | - | - | - | - | - | - | 6,390 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 972 | 1,170 | - | - | - | - | - | - | - | - | - | - | 2,142 | |||||||||||||||||||||
Gain on business divestitures | - | - | - | - | - | - | - | - | - | - | (59,347) | - | - | - | - | (59,347) | |||||||||||||||||||||
Acquisition-related and other costs | - | - | - | - | - | - | - | 20,869 | - | - | - | - | - | - | - | 20,869 | |||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | 1 | 12 | - | - | - | - | - | - | - | 13 | |||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | 3,923 | - | - | - | - | - | - | 3,923 | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 906 | - | - | 906 | |||||||||||||||||||||
Non-GAAP | $ 278,991 | $ 289,383 | $ (124,943) | $ 39,022 | 14.0% | $ 461 | 0.2% | $ (18,606) | $ (40,922) | ||||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | |||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment | SPES | SPT | Intersegment | Research and | Sales, general | Restructuring charges | Impairment and sale of residential lease asset | Gain on business divestitures | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Gain (Loss) attributable to non-controlling interests | Net income (loss) | ||||||||||||||||||||||
GAAP | $ 259,260 | $ 541,415 | $ (149,541) | $ 9,572 | 3.7% | $ (11,807) | -2.2% | $ (10,542) | $ (572,651) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
8point3 | - | - | - | (62) | - | - | - | - | - | - | - | 8,086 | - | 106 | - | 8,130 | |||||||||||||||||||||
Legacy utility and power plant projects | 10,344 | (1,320) | - | 373 | (3,911) | - | - | - | - | - | - | - | - | - | - | (3,538) | |||||||||||||||||||||
Sale-leaseback transactions | 163,837 | - | - | 25,839 | - | - | - | - | - | - | - | 2,652 | - | - | - | 28,491 | |||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Impairment and sale of residential lease assets | - | - | - | - | - | - | - | - | - | 624,335 | - | - | - | - | (150,626) | 473,709 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | 4 | 81,800 | - | - | - | - | - | - | - | - | - | - | 81,804 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 1,105 | 1,040 | - | 1,565 | 5,584 | - | - | - | - | - | - | - | 9,294 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 1,390 | 1,115 | - | - | 6,264 | - | - | - | - | - | - | - | 8,769 | |||||||||||||||||||||
Depreciation of idle equipment | - | - | - | 930 | 1,370 | - | - | - | - | - | - | - | - | - | - | 2,300 | |||||||||||||||||||||
Non-cash interest expense | - | - | - | 1 | 1 | - | 4 | 19 | - | - | - | - | - | - | - | 25 | |||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | 2,769 | - | - | - | - | - | - | 2,769 | |||||||||||||||||||||
IPO-related costs | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
Other | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | (3,338) | - | - | (3,338) | |||||||||||||||||||||
Non-GAAP | $ 433,441 | $ 540,095 | $ (149,541) | $ 39,152 | 9.0% | $ 69,608 | 12.9% | $ (10,542) | $ 35,764 | ||||||||||||||||||||||||||||
TWELVE MONTHS ENDED | |||||||||||||||||||||||||||||||||||||
December 30, 2018 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | |||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment | SPES | SPT | Intersegment | Research and | Sales, general | Restructuring charges | Impairment and sale of residential lease asset | Gain on business divestitures | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Gain (Loss) attributable to non-controlling interests | Net income (loss) | ||||||||||||||||||||||
GAAP | $ 1,045,614 | $ 1,069,010 | $ (388,539) | $ 156,204 | 14.9% | $ (427,899) | -40.0% | $ (25,386) | $ (811,091) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
8point3 | (2,400) | (6,188) | - | (2,149) | (6,188) | - | - | - | - | - | - | - | - | (148) | - | (8,485) | |||||||||||||||||||||
Legacy utility and power plant projects | (828) | (3,317) | - | (787) | (457) | - | - | - | - | - | - | - | - | - | - | (1,244) | |||||||||||||||||||||
Sale-leaseback transactions | 101,581 | - | - | 661 | (419) | - | - | - | - | - | - | 18,560 | - | - | - | 18,802 | |||||||||||||||||||||
Unrealized loss on equity investments | - | - | - | - | - | - | - | - | - | - | - | 6,375 | - | - | - | 6,375 | |||||||||||||||||||||
Other adjustments: | - | - | |||||||||||||||||||||||||||||||||||
Impairment and sale of residential lease assets | - | - | - | (14,847) | - | - | - | - | - | 251,984 | - | - | - | - | (9,630) | 227,507 | |||||||||||||||||||||
Impairment of property, plant and equipment | - | - | - | 33 | 355,074 | - | 12,832 | 1,229 | - | - | - | - | - | - | - | 369,168 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | (3,795) | 91,023 | - | - | - | - | - | - | - | - | - | - | 87,228 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 2,370 | 2,626 | - | 5,496 | 17,723 | - | - | - | - | - | - | - | 28,215 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 4,109 | 4,857 | - | - | - | - | - | - | - | - | - | - | 8,966 | |||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | - | 1,330 | - | - | - | - | - | - | - | 1,330 | |||||||||||||||||||||
Depreciation of idle equipment | - | - | - | 289 | 432 | - | - | - | - | - | - | - | - | - | - | 721 | |||||||||||||||||||||
Gain on business divestitures | - | - | - | - | - | - | - | - | - | - | (59,347) | - | - | - | - | (59,347) | |||||||||||||||||||||
Acquisition-related and other costs | - | - | - | - | - | - | - | 17,727 | - | - | - | - | - | - | - | 17,727 | |||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | 7 | 61 | - | - | - | - | - | - | - | 68 | |||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | 17,497 | - | - | - | - | - | - | 17,497 | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | (4,797) | - | - | (4,797) | |||||||||||||||||||||
Non-GAAP | $ 1,143,967 | $ 1,059,505 | $ (388,539) | $ 142,088 | 12.4% | $ 19,049 | 1.8% | $ (25,386) | $ (101,360) | ||||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | |||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment | SPES | SPT | Intersegment | Research and | Sales, general | Restructuring charges | Impairment and sale of residential lease asset | Gain on business divestitures | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Gain (Loss) attributable to non-controlling interests | Net income (loss) | ||||||||||||||||||||||
GAAP | $ 910,206 | $ 1,350,790 | $ (466,949) | $ 89,578 | 9.8% | $ (79,749) | -5.9% | $ (28,474) | $ (929,121) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
8point3 | 7,164 | 34 | - | (2,553) | (103) | - | - | - | - | - | - | 86,050 | - | (4,404) | - | 78,990 | |||||||||||||||||||||
Legacy utility and power plant projects | 10,665 | 43,994 | - | 1,443 | 40,303 | - | - | - | - | - | - | - | - | - | - | 41,746 | |||||||||||||||||||||
Sale-leaseback transactions | 242,217 | 30,437 | - | 31,573 | (479) | - | - | - | - | - | - | 8,224 | - | - | - | 39,318 | |||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Impairment and sale of residential lease assets | - | - | - | - | - | - | - | - | - | 624,335 | - | - | - | - | (150,626) | 473,709 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | (1) | 166,907 | - | - | - | - | - | - | - | - | - | - | 166,906 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 2,600 | 2,889 | - | 6,448 | 22,737 | - | - | - | - | - | - | - | 34,674 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 5,790 | 4,416 | - | 1,201 | 7,641 | - | - | - | - | - | - | - | 19,048 | |||||||||||||||||||||
Depreciation of idle equipment | - | - | - | 930 | 1,370 | - | - | - | - | - | - | - | - | - | - | 2,300 | |||||||||||||||||||||
Non-cash interest expense | - | - | - | 13 | 19 | - | 16 | 80 | - | - | - | - | - | - | - | 128 | |||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | 21,045 | - | - | - | - | - | - | 21,045 | |||||||||||||||||||||
IPO-related costs | - | - | - | - | - | - | - | (82) | - | - | - | - | - | - | - | (82) | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 16,932 | - | - | 16,932 | |||||||||||||||||||||
Non-GAAP | $ 1,170,252 | $ 1,425,255 | $ (466,949) | $ 129,373 | 11.1% | $ 135,573 | 9.5% | $ (28,474) | $ (34,407) |
SOURCE SunPower Corp.
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