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 2.05. | Costs Associated with Exit or Disposal Activities. |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Press release dated August 9, 2016 |
SUNPOWER CORPORATION | ||
August 9, 2016 | 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 August 9, 2016 |
($ Millions, except percentages and per-share data) | 2nd Quarter 2016 | 1st Quarter 2016 | 2nd Quarter 2015 |
GAAP revenue | $420.5 | $384.9 | $381.0 |
GAAP gross margin | 9.8% | 13.4% | 18.6% |
GAAP net income (loss) | $(70.0) | $(85.4) | $6.5 |
GAAP net income (loss) per diluted share | $(0.51) | $(0.62) | $0.04 |
Non-GAAP revenue1 | $401.8 | $433.6 | $376.7 |
Non-GAAP gross margin1 | 13.1% | 13.6% | 17.6% |
Non-GAAP net income (loss)1 | $(30.1) | $(41.2) | $27.2 |
Non-GAAP net income (loss) per diluted share1 | $(0.22) | $(0.30) | $0.18 |
EBITDA1 | $29.9 | $6.3 | $63.6 |
1 | Information 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. |
• | Workforce reduction of approximately 15 percent or 1,200 employees, primarily related to its Philippine facility closure |
• | Restructuring charges totaling $30-$45 million |
• | Substantial portion of charges to be incurred in the third quarter of 2016 with more than 50 percent of the total charges to be cash |
• | Annual operating expense reductions of approximately 10 percent |
Jul. 3, 2016 | Jan. 3, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 590,091 | $ | 954,528 | |||
Restricted cash and cash equivalents, current portion | 23,091 | 24,488 | |||||
Accounts receivable, net | 211,753 | 190,448 | |||||
Costs and estimated earnings in excess of billings | 32,677 | 38,685 | |||||
Inventories | 467,914 | 382,390 | |||||
Advances to suppliers, current portion | 72,061 | 85,012 | |||||
Project assets - plants and land, current portion | 904,429 | 479,452 | |||||
Prepaid expenses and other current assets | 306,616 | 359,517 | |||||
Total current assets | 2,608,632 | 2,514,520 | |||||
Restricted cash and cash equivalents, net of current portion | 45,891 | 41,748 | |||||
Restricted long-term marketable securities | 6,362 | 6,475 | |||||
Property, plant and equipment, net | 818,711 | 731,230 | |||||
Solar power systems leased and to be leased, net | 594,266 | 531,520 | |||||
Project assets - plants and land, net of current portion | 26,282 | 5,072 | |||||
Advances to suppliers, net of current portion | 246,468 | 274,085 | |||||
Long-term financing receivables, net | 429,910 | 334,791 | |||||
Goodwill and other intangible assets, net | 107,547 | 119,577 | |||||
Other long-term assets | 317,095 | 297,975 | |||||
Total assets | $ | 5,201,164 | $ | 4,856,993 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 518,598 | $ | 514,654 | |||
Accrued liabilities | 373,874 | 313,497 | |||||
Billings in excess of costs and estimated earnings | 92,295 | 115,739 | |||||
Short-term debt | 350,764 | 21,041 | |||||
Customer advances, current portion | 41,544 | 33,671 | |||||
Total current liabilities | 1,377,075 | 998,602 | |||||
Long-term debt | 578,231 | 478,948 | |||||
Convertible debt | 1,112,127 | 1,110,960 | |||||
Customer advances, net of current portion | 112,663 | 126,183 | |||||
Other long-term liabilities | 578,917 | 564,557 | |||||
Total liabilities | 3,759,013 | 3,279,250 | |||||
Redeemable noncontrolling interests in subsidiaries | 90,551 | 69,104 | |||||
Equity: |
Preferred stock | — | — | |||||
Common stock | 138 | 137 | |||||
Additional paid-in capital | 2,391,912 | 2,359,917 | |||||
Accumulated deficit | (903,018 | ) | (747,617 | ) | |||
Accumulated other comprehensive loss | (12,601 | ) | (8,023 | ) | |||
Treasury stock, at cost | (174,937 | ) | (155,265 | ) | |||
Total stockholders' equity | 1,301,494 | 1,449,149 | |||||
Noncontrolling interests in subsidiaries | 50,106 | 59,490 | |||||
Total equity | 1,351,600 | 1,508,639 | |||||
Total liabilities and equity | $ | 5,201,164 | $ | 4,856,993 |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Residential | $ | 177,715 | $ | 151,807 | $ | 152,205 | $ | 329,522 | $ | 307,529 | ||||||||||
Commercial | 97,846 | 52,241 | 62,984 | 150,087 | 112,047 | |||||||||||||||
Power Plant | 144,891 | 180,827 | 165,831 | 325,718 | 402,315 | |||||||||||||||
Total revenue | 420,452 | 384,875 | 381,020 | 805,327 | 821,891 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Residential | 138,959 | 118,160 | 116,979 | 257,119 | 239,751 | |||||||||||||||
Commercial | 89,523 | 45,226 | 58,842 | 134,749 | 105,722 | |||||||||||||||
Power Plant | 150,676 | 169,952 | 134,318 | 320,628 | 314,719 | |||||||||||||||
Total cost of revenue | 379,158 | 333,338 | 310,139 | 712,496 | 660,192 | |||||||||||||||
Gross margin | 41,294 | 51,537 | 70,881 | 92,831 | 161,699 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 31,411 | 32,706 | 20,560 | 64,117 | 41,728 | |||||||||||||||
Selling, general and administrative | 84,683 | 97,791 | 81,520 | 182,474 | 158,734 | |||||||||||||||
Restructuring charges | 117 | 96 | 1,749 | 213 | 5,330 | |||||||||||||||
Total operating expenses | 116,211 | 130,593 | 103,829 | 246,804 | 205,792 | |||||||||||||||
Operating loss | (74,917 | ) | (79,056 | ) | (32,948 | ) | (153,973 | ) | (44,093 | ) | ||||||||||
Other income (expense), net | (18,966 | ) | (18,416 | ) | 6,959 | (37,382 | ) | (10,786 | ) | |||||||||||
Loss before income taxes and equity in earnings (loss) of unconsolidated investees | (93,883 | ) | (97,472 | ) | (25,989 | ) | (191,355 | ) | (54,879 | ) | ||||||||||
Benefit from (provision for) income taxes | (6,648 | ) | (3,181 | ) | 659 | (9,829 | ) | (1,692 | ) | |||||||||||
Equity in earnings (loss) of unconsolidated investees | 8,350 | (764 | ) | 1,864 | 7,586 | 4,055 | ||||||||||||||
Net loss | (92,181 | ) | (101,417 | ) | (23,466 | ) | (193,598 | ) | (52,516 | ) | ||||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | 22,189 | 16,008 | 29,975 | 38,197 | 49,444 | |||||||||||||||
Net income (loss) attributable to stockholders | $ | (69,992 | ) | $ | (85,409 | ) | $ | 6,509 | $ | (155,401 | ) | $ | (3,072 | ) | ||||||
Net income (loss) per share attributable to stockholders: | ||||||||||||||||||||
- Basic | $ | (0.51 | ) | $ | (0.62 | ) | $ | 0.05 | $ | (1.13 | ) | $ | (0.02 | ) | ||||||
- Diluted | $ | (0.51 | ) | $ | (0.62 | ) | $ | 0.04 | $ | (1.13 | ) | $ | (0.02 | ) | ||||||
Weighted-average shares: | ||||||||||||||||||||
- Basic | 138,084 | 137,203 | 134,376 | 137,644 | 133,205 | |||||||||||||||
- Diluted | 138,084 | 137,203 | 156,995 | 137,644 | 133,205 |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss | $ | (92,181 | ) | $ | (101,417 | ) | $ | (23,466 | ) | $ | (193,598 | ) | $ | (52,516 | ) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
Depreciation and amortization expense | 40,898 | 42,117 | 31,442 | 83,015 | 60,005 | |||||||||||||||
Stock-based compensation | 16,475 | 16,520 | 14,040 | 32,995 | 27,586 | |||||||||||||||
Non-cash interest expense | 309 | 346 | 571 | 655 | 5,251 | |||||||||||||||
Equity in loss (earnings) of unconsolidated investees | (8,350 | ) | 764 | (1,864 | ) | (7,586 | ) | (4,055 | ) | |||||||||||
Excess tax benefit from stock-based compensation | — | — | (6,155 | ) | — | (6,727 | ) | |||||||||||||
Deferred income taxes | 2,018 | (1,169 | ) | 6,874 | 849 | (367 | ) | |||||||||||||
Gain on sale of residential lease portfolio to 8point3 Energy Partners LP | — | — | (27,915 | ) | — | (27,915 | ) | |||||||||||||
Other, net | 909 | 890 | 522 | 1,799 | 1,377 | |||||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||||||||||||||
Accounts receivable | (35,856 | ) | 12,561 | 32,467 | (23,295 | ) | 65,202 | |||||||||||||
Costs and estimated earnings in excess of billings | 23,826 | (17,525 | ) | (2,332 | ) | 6,301 | 138,638 | |||||||||||||
Inventories | (96,799 | ) | (18,248 | ) | (22,654 | ) | (115,047 | ) | (130,726 | ) | ||||||||||
Project assets | (254,007 | ) | (179,376 | ) | (218,624 | ) | (433,383 | ) | (311,774 | ) | ||||||||||
Prepaid expenses and other assets | 93,743 | (45,034 | ) | 54,515 | 48,709 | 29,425 | ||||||||||||||
Long-term financing receivables, net | (51,108 | ) | (44,011 | ) | (40,060 | ) | (95,119 | ) | (69,258 | ) | ||||||||||
Advances to suppliers | 28,656 | 11,913 | 11,191 | 40,569 | 25,094 | |||||||||||||||
Accounts payable and other accrued liabilities | 82,051 | (69,974 | ) | (21,911 | ) | 12,077 | (71,529 | ) | ||||||||||||
Billings in excess of costs and estimated earnings | (49,915 | ) | 26,866 | 3,709 | (23,049 | ) | 9,330 | |||||||||||||
Customer advances | (760 | ) | (5,124 | ) | (2,383 | ) | (5,884 | ) | (12,482 | ) | ||||||||||
Net cash used in operating activities | (300,091 | ) | (369,901 | ) | (212,033 | ) | (669,992 | ) | (325,441 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Increase in restricted cash and cash equivalents | (941 | ) | (1,806 | ) | (9,579 | ) | (2,747 | ) | (28,407 | ) | ||||||||||
Purchases of property, plant and equipment | (46,280 | ) | (47,044 | ) | (44,214 | ) | (93,324 | ) | (68,778 | ) |
Cash paid for solar power systems, leased and to be leased | (22,918 | ) | (23,238 | ) | (22,429 | ) | (46,156 | ) | (41,832 | ) | ||||||||||
Cash paid for solar power systems | (2,282 | ) | — | (10,007 | ) | (2,282 | ) | (10,007 | ) | |||||||||||
Proceeds from (payments to) 8point3 Energy Partners LP attributable to real estate projects and residential lease portfolio | 130 | (9,968 | ) | 341,174 | (9,838 | ) | 341,174 | |||||||||||||
Cash paid for investments in unconsolidated investees | (557 | ) | (9,752 | ) | (7,092 | ) | (10,309 | ) | (7,092 | ) | ||||||||||
Cash paid for intangibles | — | — | — | — | (526 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | (72,848 | ) | (91,808 | ) | 247,853 | (164,656 | ) | 184,532 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Cash paid for repurchase of convertible debt | — | — | — | — | (324,273 | ) | ||||||||||||||
Proceeds from settlement of 4.50% Bond Hedge | — | — | — | — | 74,628 | |||||||||||||||
Payments to settle 4.50% Warrants | — | — | (574 | ) | — | (574 | ) | |||||||||||||
Repayment of bank loans and other debt | (162 | ) | (7,725 | ) | (7,873 | ) | (7,887 | ) | (15,819 | ) | ||||||||||
Proceeds from issuance of non-recourse residential financing, net of issuance costs | 24,889 | 28,339 | 54,830 | 53,228 | 54,830 | |||||||||||||||
Repayment of non-recourse residential financing | (1,101 | ) | (1,065 | ) | (29,858 | ) | (2,166 | ) | (40,802 | ) | ||||||||||
Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | 33,083 | 24,082 | 46,046 | 57,165 | 91,936 | |||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | (1,596 | ) | (5,309 | ) | (2,307 | ) | (6,905 | ) | (4,567 | ) | ||||||||||
Proceeds from issuance of non-recourse power plant and commercial financing, net of issuance costs | 354,052 | 79,440 | 116,992 | 433,492 | 207,710 | |||||||||||||||
Repayment of non-recourse power plant and commercial financing | (51 | ) | (37,301 | ) | (226,488 | ) | (37,352 | ) | (226,578 | ) | ||||||||||
Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values | — | — | 29,300 | — | 29,300 | |||||||||||||||
Proceeds from exercise of stock options | — | — | 175 | — | 178 | |||||||||||||||
Excess tax benefit from stock-based compensation | — | — | 6,155 | — | 6,727 |
Purchases of stock for tax withholding obligations on vested restricted stock | (795 | ) | (18,876 | ) | (1,622 | ) | (19,671 | ) | (40,326 | ) | ||||||||||
Net cash provided by (used in) financing activities | 408,319 | 61,585 | (15,224 | ) | 469,904 | (187,630 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (467 | ) | 774 | 874 | 307 | (4,593 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 34,913 | (399,350 | ) | 21,470 | (364,437 | ) | (333,132 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 555,178 | 954,528 | 601,573 | 954,528 | 956,175 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 590,091 | $ | 555,178 | $ | 623,043 | $ | 590,091 | $ | 623,043 | ||||||||||
Non-cash transactions: | ||||||||||||||||||||
Assignment of residential lease receivables to third parties | $ | 1,379 | $ | 1,097 | $ | 382 | $ | 2,476 | $ | 1,689 | ||||||||||
Costs of solar power systems, leased and to be leased, sourced from existing inventory | 14,806 | 15,085 | 15,764 | 29,891 | 30,428 | |||||||||||||||
Costs of solar power systems, leased and to be leased, funded by liabilities | 6,282 | 9,050 | 3,971 | 6,282 | 3,971 | |||||||||||||||
Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets | 7,375 | — | 5,026 | 7,375 | 6,076 | |||||||||||||||
Property, plant and equipment acquisitions funded by liabilities | 73,247 | 81,369 | 37,017 | 73,247 | 37,017 | |||||||||||||||
Sale of residential lease portfolio in exchange for non-controlling equity interests in the 8point3 Group | — | — | 68,273 | — | 68,273 | |||||||||||||||
Net reclassification of cash proceeds offset by project assets in connection with the deconsolidation of assets sold to the 8point3 Group | — | 8,726 | — | 8,726 | — | |||||||||||||||
Exchange of receivables for an investment in an unconsolidated investee | 2,890 | — | — | 2,890 | — |
• | 8point3. In 2015, 8point3 Energy Partners LP ("8point3 Energy Partners"), a joint YieldCo vehicle, was 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. Class A shares of 8point3 Energy Partners 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 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. Under GAAP, such projects are accounted for under 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 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. |
• | Sale of operating lease assets. The company includes adjustments related to the revenue recognition of the sale of certain solar assets subject to an operating lease (or of solar assets that are leased by or intended to be leased by the third-party purchaser to another party) based on the net proceeds received from the purchaser. This treatment is consistent with accounting rules relating to the sale of such assets under IFRS. Under GAAP, these sales are accounted for as borrowing transactions in accordance with lease accounting guidance. Under such guidance, revenue and profit recognition is based on rental payments made by the end lessee, and the net proceeds from the purchaser are recorded as a non-recourse borrowing liability, with imputed interest expense recorded on the liability. This treatment continues until the company has transferred the substantial risks of ownership, as defined by lease accounting guidance, to the purchaser, at which point the sale is recognized. |
• | Sale-leaseback transactions. The company includes adjustments related to the revenue recognition of certain sale-leaseback transactions based on the net proceeds received from the buyer-lessor. This treatment is consistent with accounting rules relating to such transactions under IFRS. Under GAAP, these transactions are accounted for under the financing method in accordance with real estate accounting guidance. Under such guidance, no revenue or profit is recognized at the inception of the transaction, and the net proceeds from the buyer-lessor are recorded as a financing liability. Imputed interest is recorded on the liability equal to the company’s incremental borrowing rate adjusted solely to prevent negative amortization. |
• | 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 |
• | 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 a manner generally consistent with its GAAP methodology. 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 |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
GAAP revenue | $ | 420,452 | $ | 384,875 | $ | 381,020 | $ | 805,327 | $ | 821,891 | ||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||
8point3 | (1,400 | ) | (15,174 | ) | — | (16,574 | ) | — | ||||||||||||
Utility and power plant projects | (40,085 | ) | 53,538 | (4,313 | ) | 13,453 | (14,583 | ) | ||||||||||||
Sale of operating lease assets | 10,183 | 10,403 | — | 20,586 | — | |||||||||||||||
Sale-leaseback transactions | 12,646 | — | — | 12,646 | — | |||||||||||||||
Non-GAAP revenue | $ | 401,796 | $ | 433,642 | $ | 376,707 | $ | 835,438 | $ | 807,308 |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
GAAP gross margin | $ | 41,294 | $ | 51,537 | $ | 70,881 | $ | 92,831 | $ | 161,699 | ||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||
8point3 | (210 | ) | (4,642 | ) | — | (4,852 | ) | — | ||||||||||||
Utility and power plant projects | 4,128 | 3,557 | (4,328 | ) | 7,685 | (15,579 | ) | |||||||||||||
Sale of operating lease assets | 2,966 | 3,112 | — | 6,078 | — | |||||||||||||||
Sale-leaseback transactions | 2,988 | — | — | 2,988 | — | |||||||||||||||
Other adjustments: | ||||||||||||||||||||
Stock-based compensation expense | 5,464 | 4,125 | 3,259 | 9,589 | 5,825 | |||||||||||||||
Other | (4,038 | ) | 1,333 | (3,669 | ) | (2,705 | ) | 2,359 | ||||||||||||
Non-GAAP gross margin | $ | 52,592 | $ | 59,022 | $ | 66,143 | $ | 111,614 | $ | 154,304 | ||||||||||
GAAP gross margin (%) | 9.8 | % | 13.4 | % | 18.6 | % | 11.5 | % | 19.7 | % | ||||||||||
Non-GAAP gross margin (%) | 13.1 | % | 13.6 | % | 17.6 | % | 13.4 | % | 19.1 | % |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
GAAP net income (loss) attributable to stockholders | $ | (69,992 | ) | $ | (85,409 | ) | $ | 6,509 | $ | (155,401 | ) | $ | (3,072 | ) | ||||||
Adjustments based on IFRS: | ||||||||||||||||||||
8point3 | 18,039 | 10,719 | (4,688 | ) | 28,758 | (4,688 | ) | |||||||||||||
Utility and power plant projects | 4,128 | 3,557 | (4,328 | ) | 7,685 | (15,579 | ) | |||||||||||||
Sale of operating lease assets | 2,979 | 3,120 | — | 6,099 | — | |||||||||||||||
Sale-leaseback transactions | 2,988 | — | — | 2,988 | — | |||||||||||||||
Other adjustments: | ||||||||||||||||||||
Stock-based compensation expense | 16,475 | 16,520 | 14,040 | 32,995 | 27,586 | |||||||||||||||
Other | (2,235 | ) | 8,608 | 13,838 | 6,373 | 37,908 | ||||||||||||||
Tax effect | (2,454 | ) | 1,684 | 1,797 | (770 | ) | 4,737 | |||||||||||||
Non-GAAP net income (loss) attributable to stockholders | $ | (30,072 | ) | $ | (41,201 | ) | $ | 27,168 | $ | (71,273 | ) | $ | 46,892 |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
Net income (loss) per diluted share | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||
GAAP net income (loss) available to common stockholders1 | $ | (69,992 | ) | $ | (85,409 | ) | $ | 7,021 | $ | (155,401 | ) | $ | (3,072 | ) | ||||||
Non-GAAP net income (loss) available to common stockholders1 | $ | (30,072 | ) | $ | (41,201 | ) | $ | 27,679 | $ | (71,273 | ) | $ | 47,954 | |||||||
Denominator: | ||||||||||||||||||||
GAAP weighted-average shares | 138,084 | 137,203 | 156,995 | 137,644 | 133,205 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock options | — | — | — | — | 39 | |||||||||||||||
Restricted stock units | — | — | — | — | 2,239 | |||||||||||||||
Upfront Warrants (held by Total) | — | — | — | — | 7,055 | |||||||||||||||
Warrants (under the CSO2015) | — | — | — | — | 1,827 | |||||||||||||||
0.75% debentures due 2018 | — | — | — | — | 12,026 | |||||||||||||||
Non-GAAP weighted-average shares1 | 138,084 | 137,203 | 156,995 | 137,644 | 156,391 | |||||||||||||||
GAAP net income (loss) per diluted share | $ | (0.51 | ) | $ | (0.62 | ) | $ | 0.04 | $ | (1.13 | ) | $ | (0.02 | ) | ||||||
Non-GAAP net income (loss) per diluted share | $ | (0.22 | ) | $ | (0.30 | ) | $ | 0.18 | $ | (0.52 | ) | $ | 0.31 |
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 4.0% 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. |
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||||||
Jul. 3, 2016 | Apr. 3, 2016 | Jun. 28, 2015 | Jul. 3, 2016 | Jun. 28, 2015 | ||||||||||||||||
GAAP net income (loss) attributable to stockholders | $ | (69,992 | ) | $ | (85,409 | ) | $ | 6,509 | $ | (155,401 | ) | $ | (3,072 | ) | ||||||
Adjustments based on IFRS: | ||||||||||||||||||||
8point3 | 18,039 | 10,719 | (4,688 | ) | 28,758 | (4,688 | ) | |||||||||||||
Utility and power plant projects | 4,128 | 3,557 | (4,328 | ) | 7,685 | (15,579 | ) | |||||||||||||
Sale of operating lease assets | 2,979 | 3,120 | — | 6,099 | — | |||||||||||||||
Sale-leaseback transactions | 2,988 | — | — | 2,988 | — | |||||||||||||||
Other adjustments: | ||||||||||||||||||||
Stock-based compensation expense | 16,475 | 16,520 | 14,040 | 32,995 | 27,586 | |||||||||||||||
Cash interest expense, net of interest income | 13,144 | 12,184 | 8,023 | 25,328 | 19,115 | |||||||||||||||
Provision for (benefit from) income taxes | 6,648 | 3,181 | (659 | ) | 9,829 | 1,692 | ||||||||||||||
Depreciation | 37,730 | 33,826 | 30,820 | 71,556 | 59,424 | |||||||||||||||
Other | (2,235 | ) | 8,608 | 13,838 | 6,373 | 37,908 | ||||||||||||||
EBITDA | $ | 29,904 | $ | 6,306 | $ | 63,555 | $ | 36,210 | $ | 122,386 |
(in thousands except percentages) | Q3 2016 | FY 2016 | FY 2017 |
Revenue (GAAP) | $700,000-$800,000 | $2,800,000-$3,000,000 | N/A |
Revenue (non-GAAP)1 | $750,000-$850,000 | $3,000,000-$3,200,000 | N/A |
Gross margin (GAAP) | 14.5%-16.5% | 9.5%-11.5% | N/A |
Gross margin (non-GAAP)2 | 16.5%-18.5% | 10.5%-12.5% | N/A |
Net income (loss) (GAAP) | ($5,000)-$20,000 | ($175,000)-($125,000) | ($200,000)-($100,000) |
EBITDA3 | $115,000-$140,000 | $275,000-$325,000 | $300,000-$400,000 |
1. | Estimated non-GAAP amounts above for Q3 2016 include net adjustments that increase revenue by approximately $35 million related to 8point3, $10 million related to sale of operating lease assets, and $5 million related to sale-leaseback transactions. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase (decrease) revenue by approximately $20 million related to 8point3, $5 million related to utility and power plant projects, ($5) million related to sale of operating lease assets, and $180 million related to sale-leaseback transactions. |
2. | Estimated non-GAAP amounts above for Q3 2016 include net adjustments that increase gross margin by approximately $13 million related to 8point3, $3 million related to sale of operating lease assets, $1 million related to sale-leaseback transactions, $5 million related to stock-based compensation expense, and $1 million related to other items. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase (decrease) gross margin by approximately $15 million related to 8point3, ($2) million related to sale of operating lease assets, $20 million related to sale-leaseback transactions, and $20 million related to stock-based compensation expense. |
3. | Estimated EBITDA amounts above for Q3 2016 include net adjustments that increase (decrease) net income by approximately $16 million related to 8point3, $3 million related to sale of operating lease assets, $1 million related to sale-leaseback transactions, $17 million related to stock-based compensation expense, $20 million related to restructuring, $5 million related to other items, $15 million related to interest expense, ($2) million related to income taxes, and $45 million related to depreciation. Estimated EBITDA amounts above for fiscal 2016 include net adjustments that increase (decrease) net loss by approximately ($60) million related to 8point3, $2 million related to sale of operating lease assets, ($20) million related to sale-leaseback transactions, ($70) million related to stock-based compensation expense, ($30) million related to restructuring, ($17) million related to other items, ($55) million related to interest expense, ($20) million related to income taxes, and ($180) million related to depreciation. Estimated EBITDA amounts above for fiscal 2017 include net adjustments that decrease net loss by approximately ($65) million related to sale-leaseback transactions, ($70) million related to stock-based compensation expense, ($25) million related to other items, ($65) million related to interest expense, ($25) million related to income taxes, and ($250) million related to depreciation. |
July 3, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 177,715 | $ | 97,846 | $ | 144,891 | $ | 38,756 | 21.8 | % | $ | 8,323 | 8.5 | % | $ | (5,785 | ) | (4.0 | )% | $ | (69,992 | ) | |||||||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8point3 | (1,287 | ) | — | (113 | ) | (419 | ) | 179 | 30 | — | — | — | 1,061 | — | 17,188 | 18,039 | |||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | (40,085 | ) | — | — | 4,128 | — | — | — | — | — | — | 4,128 | |||||||||||||||||||||||||||||||||||||||||
Sale of operating lease assets | 10,183 | — | — | 2,966 | — | — | — | — | — | 13 | — | — | 2,979 | ||||||||||||||||||||||||||||||||||||||||||
Sale-leaseback transactions | — | 12,646 | — | — | 2,988 | — | — | — | — | — | — | — | 2,988 | ||||||||||||||||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 1,652 | 745 | 3,067 | 2,965 | 8,046 | — | — | — | — | 16,475 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (706 | ) | (262 | ) | (3,070 | ) | 1,190 | 508 | 117 | (12 | ) | — | — | (2,235 | ) | |||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | (2,454 | ) | — | (2,454 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 186,611 | $ | 110,492 | $ | 104,693 | $ | 42,249 | 22.6 | % | $ | 11,973 | 10.8 | % | $ | (1,630 | ) | (1.6 | )% | $ | (30,072 | ) |
April 3, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 151,807 | $ | 52,241 | $ | 180,827 | $ | 33,647 | 22.2 | % | $ | 7,015 | 13.4 | % | $ | 10,875 | 6.0 | % | $ | (85,409 | ) | ||||||||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8point3 | (1,312 | ) | — | (13,862 | ) | (485 | ) | — | (4,157 | ) | — | — | — | 1,062 | — | 14,299 | 10,719 | ||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | 53,538 | — | — | 3,557 | — | — | — | — | — | — | 3,557 | ||||||||||||||||||||||||||||||||||||||||||
Sale of operating lease assets | 10,403 | — | — | 3,112 | — | — | — | — | — | 8 | — | — | 3,120 | ||||||||||||||||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 827 | 652 | 2,646 | 3,032 | 9,363 | — | — | — | — | 16,520 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 482 | 665 | 186 | 1,827 | 5,352 | 96 | — | — | — | 8,608 | ||||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | 1,684 | — | 1,684 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 160,898 | $ | 52,241 | $ | 220,503 | $ | 37,583 | 23.4 | % | $ | 8,332 | 15.9 | % | $ | 13,107 | 5.9 | % | $ | (41,201 | ) |
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 (loss) 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 | |||||||||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8point3 | — | — | — | — | — | — | — | — | — | (4,688 | ) | — | — | (4,688 | ) | ||||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | (4,313 | ) | — | — | (4,328 | ) | — | — | — | — | — | — | (4,328 | ) | |||||||||||||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 1,212 | 531 | 1,516 | 2,380 | 8,401 | — | — | — | — | 14,040 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (1,028 | ) | (657 | ) | (1,984 | ) | 330 | 6,548 | 1,749 | 8,880 | — | — | 13,838 | |||||||||||||||||||||||||||||||||||||||
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 |
July 3, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 329,522 | $ | 150,087 | $ | 325,718 | $ | 72,403 | 22.0 | % | $ | 15,338 | 10.2 | % | $ | 5,090 | 1.6 | % | $ | (155,401 | ) | ||||||||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8point3 | (2,599 | ) | — | (13,975 | ) | (904 | ) | 179 | (4,127 | ) | — | — | — | 2,123 | — | 31,487 | 28,758 | ||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | 13,453 | — | — | 7,685 | — | — | — | — | — | — | 7,685 | ||||||||||||||||||||||||||||||||||||||||||
Sale of operating lease assets | 20,586 | — | — | 6,078 | — | — | — | — | — | 21 | — | — | 6,099 | ||||||||||||||||||||||||||||||||||||||||||
Sale-leaseback transactions | — | 12,646 | — | — | 2,988 | — | — | — | — | — | — | — | 2,988 | ||||||||||||||||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 2,479 | 1,397 | 5,713 | 5,997 | 17,409 | — | — | — | — | 32,995 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (224 | ) | 403 | (2,884 | ) | 3,017 | 5,860 | 213 | (12 | ) | — | — | 6,373 | |||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | (770 | ) | — | (770 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 347,509 | $ | 162,733 | $ | 325,196 | $ | 79,832 | 23.0 | % | $ | 20,305 | 12.5 | % | $ | 11,477 | 3.5 | % | $ | (71,273 | ) |
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 (loss) attributable to stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | Power Plant | Residential | Commercial | Power Plant | Research and development | Selling, general and administrative | Restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 307,529 | $ | 112,047 | $ | 402,315 | $ | 67,778 | 22.0 | % | $ | 6,325 | 5.6 | % | $ | 87,596 | 21.8 | % | $ | (3,072 | ) | ||||||||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8point3 | — | — | — | — | — | — | — | — | — | (4,688 | ) | — | — | (4,688 | ) | ||||||||||||||||||||||||||||||||||||||||
Utility and power plant projects | — | — | (14,583 | ) | — | — | (15,579 | ) | — | — | — | — | — | — | (15,579 | ) | |||||||||||||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | 2,134 | 919 | 2,772 | 4,653 | 17,108 | — | — | — | — | 27,586 | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 776 | (203 | ) | 1,786 | 660 | 10,331 | 5,330 | 19,228 | — | — | 37,908 | |||||||||||||||||||||||||||||||||||||||||
Tax effect | — | — | — | — | — | — | — | — | — | — | 4,737 | — | 4,737 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 307,529 | $ | 112,047 | $ | 387,732 | $ | 70,688 | 23.0 | % | $ | 7,041 | 6.3 | % | $ | 76,575 | 19.7 | % | $ | 46,892 |