SunPower Reports First Quarter 2022 Results
- Recorded
$350 million GAAP revenue, including record-high$336 million non-GAAP residential revenue, 41% year-over-year residential growth - Added 16,500 customers, 40% year-over-year growth
- Entered second quarter with a record 13,800 backlog, up 169% year-over-year
- Advancing industry leadership with late-stage discussions to develop world's most innovative residential panel with
First Solar
"
Capturing Demand by Executing Across Strategic Pillars
Energy share-of-wallet is increasing faster than other spending categories, according to a 2021 Deloitte Insights Consumer Spending Forecast, which predicts customers will increase spending on energy products and services by more than 20% from 2021 to 2026 compared to a total 7% increase in projected disposable personal income during that time. Demand for cleaner, more reliable energy is higher than ever, yet less than 5% of the 100 million home addressable market have adopted solar, presenting a land-grab opportunity for solar providers.
SunPower is in late-stage discussions withFirst Solar (NASDAQ: FSLR) to co-develop the world's most advanced residential solar panel, exclusively forSunPower . This initiative is expected to supportSunPower's strategy to expand its catalog of suppliers while remaining the leader in superior products and tech innovation.SunPower launched its Dealer Accelerator Program, through which it is making investments in local solar dealers to advance their growth and expand into new territory. As part of the program, participating dealers agree to sell SunPower® solar systems, SunVault™ battery storage and SunPower Financial™ solutions, with the goal of accelerating adoption of solar throughSunPower's ecosystem of products. To date, the company has made minority investments inFreedom Solar , which servesTexas , theFront Range of Colorado and centralFlorida ; and SeaBright Solar , which servesNew Jersey ,New York andSouthern California .SunPower also added 83 new dealers to its network in the last quarter.New Homes continues to be a key pillar ofSunPower's business, providing meaningful growth in the first quarter and a record-high pipeline of more than 70,000 single and multifamily homes.SunPower currently holds a 41% market share among the top 60 builders inCalifornia and has five national agreements with the top 20 U.S. homebuilders.SunPower is actively expanding its new homes leadership across the country; in March, the company announced a multi-year exclusive agreement with builderLandsea Homes (NASDAQ: LSEA) coveringCalifornia ,Texas ,Arizona andFlorida .- SunPower Financial closed the Dorado 1 lease/PPA fund, adding approximately
$350 million of capacity to support customer demand and growth, reducing the combined cost of capital for lease and loan to less than 5.25%. SunPower's Net Promoter Score improved from 35 to 49, a 32% improvement year-over-year. Phone and Chat Service Levels also improved, reducing customer wait times 48% to less than one minute. The company's digital efforts also resulted in improvedApp Store ratings for the mySunPower mobile app and web page, with theApp Store rating up from 4.2 to 4.4.
Financial Highlights
($ Millions, except percentages, residential |
1st Quarter 2022 |
4th Quarter 2021 |
1st Quarter 2021 |
GAAP revenue from continuing operations |
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GAAP gross margin from continuing operations |
20.6% |
17.3% |
19.1% |
GAAP net income (loss) from continuing operations |
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GAAP net income (loss) from continuing operations |
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Non-GAAP revenue from continuing operations1 |
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Non-GAAP gross margin from continuing operations1 |
21.7% |
17.9% |
22.2% |
Non-GAAP net income (loss) from continuing operations1 |
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Non-GAAP net income (loss) from continuing |
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Adjusted EBITDA1 |
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Residential customers |
443,800 |
427,300 |
363,000 |
Cash2 |
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The pending sale of our C&I Solutions business met the criteria for classification as "discontinued operations" in accordance with the |
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1Information about SunPower's use of non-GAAP financial information, including a reconciliation to |
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2Includes cash and cash equivalents, excluding restricted cash |
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"Closing out a strong first quarter we continue to perform well, with GAAP gross margin of 20.6% and non-GAAP residential gross margins above 20% for six quarters in a row. Additionally, our direct business is growing rapidly and outperforming the market," said
Financial highlights include:
- Added 16,500 customers in this quarter, bringing total install base to 443,800
- Recorded GAAP gross margin of 20.6% and non-GAAP residential gross margin of 23.0%
- Achieved SunPower Financial attachment rate greater than 40%
Financial Outlook
Earnings Conference Call Information
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.
About
Headquartered in
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) expectations regarding demand and our future performance based on backlog, bookings, projected consumer demand, and pipelines in our sales channels and for our products, and our ability to meet consumer demand; (b) our plans and expectations our strategic partnerships and initiatives, including our proposed partnership with
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) regulatory changes and the availability of economic incentives promoting use of solar energy; (2) potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including impacts of the Covid-19 pandemic, and other factors; (3) competition in the solar and general energy industry, supply chain constraints, and pricing pressures; (4) changes in public policy, including the imposition and applicability of tariffs; (5) our dependence on sole- or limited-source supply relationships, including for our solar panels and other components of our products; (6) risks related to the introduction of new or enhanced products, including potential technical challenges, lead times, and our ability to match supply with demand while maintaining quality, sales, and support standards; (7) 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; (8) our liquidity, indebtedness, and ability to obtain additional financing for our projects and customers; and (9) challenges managing our acquisitions, joint ventures, and partnerships, including our ability to successfully manage acquired assets and supplier relationships. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the
©2022
SUNPOWER CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ 142,250 |
$ 123,735 |
|
Restricted cash and cash equivalents, current portion |
681 |
691 |
|
Short-term investments |
308,835 |
365,880 |
|
Accounts receivable, net |
116,354 |
121,268 |
|
Contract assets |
35,721 |
25,994 |
|
Inventories |
245,612 |
214,432 |
|
Advances to suppliers, current portion |
2,685 |
462 |
|
Prepaid expenses and other current assets |
128,271 |
100,212 |
|
Current assets of discontinued operations |
179,484 |
120,792 |
|
Total current assets |
1,159,893 |
1,073,466 |
|
Restricted cash and cash equivalents, net of current portion |
12,857 |
14,887 |
|
Property, plant and equipment, net |
42,495 |
33,560 |
|
Operating lease right-of-use assets |
30,337 |
31,654 |
|
Solar power systems leased, net |
44,550 |
45,502 |
|
|
126,338 |
126,338 |
|
Other intangible assets, net |
24,776 |
24,879 |
|
Other long-term assets |
129,529 |
156,994 |
|
Long-term assets of discontinued operations |
— |
47,526 |
|
Total assets |
$ 1,570,775 |
$ 1,554,806 |
|
Liabilities and Equity |
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Current liabilities: |
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Accounts payable |
$ 179,069 |
$ 138,514 |
|
Accrued liabilities |
129,569 |
101,980 |
|
Operating lease liabilities, current portion |
11,439 |
10,753 |
|
Contract liabilities, current portion |
66,127 |
62,285 |
|
Short-term debt |
107,863 |
109,568 |
|
Convertible debt, current portion |
423,987 |
— |
|
Current liabilities of discontinued operations |
138,153 |
86,496 |
|
Total current liabilities |
1,056,207 |
509,596 |
|
Long-term debt |
338 |
380 |
|
Convertible debt, net of current portion |
— |
423,677 |
|
Operating lease liabilities, net of current portion |
26,215 |
28,566 |
|
Contract liabilities, net of current portion |
19,059 |
18,705 |
|
Other long-term liabilities |
109,295 |
141,197 |
|
Long-term liabilities of discontinued operations |
— |
42,661 |
|
Total liabilities |
1,211,114 |
1,164,782 |
|
Equity: |
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Common stock |
174 |
173 |
|
Additional paid-in capital |
2,719,927 |
2,714,500 |
|
Accumulated deficit |
(2,150,083) |
(2,122,212) |
|
Accumulated other comprehensive income |
11,170 |
11,168 |
|
Treasury stock, at cost |
(222,573) |
(215,240) |
|
Total stockholders' equity |
358,615 |
388,389 |
|
Noncontrolling interests in subsidiaries |
1,046 |
1,635 |
|
Total equity |
359,661 |
390,024 |
|
Total liabilities and equity |
$ 1,570,775 |
$ 1,554,806 |
SUNPOWER CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
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THREE MONTHS ENDED |
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Total revenues |
$ 350,277 |
$ 347,830 |
$ 240,136 |
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Total cost of revenues |
277,968 |
287,585 |
194,170 |
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Gross profit |
72,309 |
60,245 |
45,966 |
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Operating expenses: |
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Research and development |
5,010 |
4,214 |
4,624 |
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Sales, general, and administrative |
76,996 |
68,717 |
42,267 |
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Restructuring charges (credits) |
627 |
175 |
3,766 |
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(Gain) loss on sale and impairment of residential lease |
— |
— |
(226) |
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(Income) expense from transition services agreement, net |
266 |
956 |
(3,087) |
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Total operating expenses |
82,899 |
74,062 |
47,344 |
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Operating income (loss) |
(10,590) |
(13,817) |
(1,378) |
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Other (expense) income, net: |
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Interest income |
42 |
— |
52 |
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Interest expense |
(5,044) |
(5,203) |
(7,027) |
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Other, net |
1,444 |
68,871 |
(44,515) |
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Other (expense) income, net |
(3,558) |
63,668 |
(51,490) |
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(Loss) income from continuing operations before income |
(14,148) |
49,851 |
(52,868) |
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Benefits from (provision for) income taxes |
11,643 |
(10,814) |
5,126 |
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Net (loss) income from continuing operations |
(2,505) |
39,037 |
(47,742) |
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(Loss) income from discontinued operations before income |
(26,298) |
(18,645) |
(1,854) |
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Benefits from (provision for) income taxes from |
343 |
602 |
98 |
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Net (loss) income from discontinued operations, net of taxes |
(25,955) |
(18,043) |
(1,756) |
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Net (loss) income |
(28,460) |
20,994 |
(49,498) |
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Net loss (income) from continuing operations attributable |
339 |
(176) |
595 |
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Net loss (income) from discontinued operations attributable |
250 |
(622) |
518 |
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Net loss (income) attributable to noncontrolling interests |
589 |
(798) |
1,113 |
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Net (loss) income from continuing operations attributable to |
(2,166) |
38,861 |
(47,147) |
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Net (loss) income from discontinued operations attributable to |
(25,705) |
(18,665) |
(1,238) |
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Net (loss) income attributable to stockholders |
$ (27,871) |
$ 20,196 |
$ (48,385) |
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Net (loss) income per share attributable to stockholders - |
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Continuing operations |
$ (0.01) |
$ 0.22 |
$ (0.28) |
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Discontinued operations |
$ (0.15) |
$ (0.11) |
$ (0.01) |
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Net (loss) income per share – basic |
$ (0.16) |
$ 0.11 |
$ (0.29) |
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Net (loss) income per share attributable to stockholders - |
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Continuing operations |
$ (0.01) |
$ 0.22 |
$ (0.28) |
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Discontinued operations |
$ (0.15) |
$ (0.11) |
$ (0.01) |
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Net (loss) income per share – diluted |
$ (0.16) |
$ 0.11 |
$ (0.29) |
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Weighted-average shares: |
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Basic |
173,376 |
173,019 |
171,200 |
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Diluted |
173,376 |
192,875 |
171,200 |
SUNPOWER CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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THREE MONTHS ENDED |
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Cash flows from operating activities: |
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Net (loss) income |
$ (28,460) |
$ 20,994 |
$ (49,498) |
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Adjustments to reconcile net (loss) income to net cash used in |
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Depreciation and amortization |
4,665 |
4,008 |
2,849 |
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Stock-based compensation |
5,427 |
6,126 |
5,437 |
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Non-cash interest expense |
726 |
947 |
1,505 |
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Loss (gain) on equity investments |
(1,315) |
(68,950) |
44,730 |
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(Gain) loss on sale of investments |
— |
— |
(1,162) |
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Deferred income taxes |
(13,750) |
9,797 |
(3,901) |
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(Gain) loss on sale and impairment of residential lease assets |
— |
— |
(226) |
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Other, net |
845 |
439 |
(5,054) |
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Changes in operating assets and liabilities: |
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Accounts receivable |
(12,354) |
(14,099) |
4,114 |
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Contract assets |
(6,519) |
6,163 |
487 |
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Inventories |
(35,081) |
(1,567) |
(8,271) |
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Project assets |
2,892 |
1,581 |
9,197 |
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Prepaid expenses and other assets |
(86,502) |
(21,786) |
1,429 |
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Operating lease right-of-use assets |
2,415 |
2,548 |
2,875 |
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Advances to suppliers |
(2,222) |
225 |
(3,852) |
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Accounts payable and other accrued liabilities |
41,444 |
39,976 |
(24,152) |
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Contract liabilities |
22,066 |
13,736 |
(13,461) |
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Operating lease liabilities |
(3,027) |
(2,549) |
(3,429) |
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Net cash (used in) provided by operating |
(108,750) |
(2,411) |
(40,383) |
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Cash flows from investing activities: |
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Purchases of property, plant and equipment |
(8,636) |
(6,090) |
(1,964) |
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Investments in software development costs |
(1,521) |
(1,051) |
— |
|||
Cash paid for solar power systems |
— |
— |
(635) |
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Cash received from sale of investments |
— |
— |
1,200 |
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Cash paid for acquisitions, net of cash acquired |
— |
(124,200) |
— |
|||
Cash paid for equity investments |
(7,000) |
— |
— |
|||
Proceeds from sale of equity investment |
149,830 |
— |
— |
|||
Cash paid for investments in unconsolidated investees |
(154) |
— |
— |
|||
Net cash provided by (used in) investing activities |
132,519 |
(131,341) |
(1,399) |
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Cash flows from financing activities: |
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Proceeds from bank loans and other debt |
21,458 |
28,412 |
71,323 |
|||
Repayment of bank loans and other debt |
(23,944) |
(24,385) |
(35,076) |
|||
Repayment of non-recourse residential and commercial |
— |
— |
(9,713) |
|||
Purchases of stock for tax withholding obligations on |
(7,332) |
(2,500) |
(2,118) |
|||
Net cash (used in) provided by financing |
(9,818) |
1,527 |
24,416 |
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Effect of exchange rate changes on cash, cash equivalents, and |
— |
— |
— |
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Net increase (decrease) in cash, cash equivalents, and restricted |
13,950 |
(132,225) |
(17,367) |
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Cash, cash equivalents and restricted cash, beginning of period |
148,613 |
280,838 |
246,804 |
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Cash, cash equivalents, and restricted cash, end of period |
$ 162,563 |
$ 148,613 |
$ 229,437 |
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Reconciliation of cash, cash equivalents, and restricted cash |
||||||
Cash and cash equivalents |
142,250 |
123,735 |
$ 213,105 |
|||
Restricted cash and cash equivalents, current portion |
681 |
691 |
10,928 |
|||
Restricted cash and cash equivalents, net of current portion |
12,857 |
14,887 |
5,404 |
|||
Cash, cash equivalents, and restricted cash from |
6,776 |
9,300 |
— |
|||
Total cash, cash equivalents, and restricted cash |
$ 162,564 |
$ 148,613 |
$ 229,437 |
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Supplemental disclosure of cash flow information: |
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Property, plant and equipment acquisitions funded by |
922 |
(1,210) |
1,647 |
|||
Right-of-use assets obtained in exchange of lease |
877 |
3,671 |
11,528 |
|||
Fair value of contingent consideration for business |
— |
11,100 |
— |
|||
Cash paid for interest |
9,874 |
1,555 |
11,437 |
|||
Cash paid for income taxes |
250 |
2,509 |
39 |
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures listed below are: revenue; gross margin; net loss; net loss per diluted share; and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Management believes that each of these non-GAAP measures are 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 provide 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 analysis. 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; and therefore, 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 gross margin includes adjustments relating to gain/loss on sale and impairment of residential lease assets, litigation, stock-based compensation, and amortization of intangible assets, each of which is described below. In addition to the above adjustments, non-GAAP net loss and non-GAAP net loss per diluted share are adjusted for adjustments relating to mark to market gain on equity investments, gain on business divestitures, impairment of property, plant, and equipment, transaction-related costs, non-cash interest expense, restructuring charges (credits), gain on convertible debt repurchased, tax effect of these non-GAAP adjustments, each of which is described below. In addition to the above adjustments, Adjusted EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for income taxes, and depreciation.
Non-GAAP Adjustments Based on International Financial Reporting Standards ("IFRS")
The company's non-GAAP results include adjustments under IFRS that are consistent with the adjustments made in connection with the company's internal reporting process as part of its status as a consolidated subsidiary of
- Mark-to-market loss (gain) in equity investments: We recognize adjustments related to the fair value of equity investments with readily determinable fair value based on the changes in the stock price of these equity investments at every reporting period. Under
U.S. GAAP, mark-to-market gains and losses due to changes in stock prices for these securities are recorded in earnings while under IFRS, an election can be made to recognize such gains and losses in other comprehensive income. Such an election was made byTotalEnergies SE . Further, we elected the Fair Value Option ("FVO") for some of our equity method investments, and we adjust the carrying value of those investments based on their fair market value calculated periodically. Such option is not available under IFRS, and equity method accounting is required for those investments. We believe that excluding these adjustments on equity investments is consistent with our internal reporting process as part of its status as a consolidated subsidiary ofTotalEnergies SE . and better reflects our ongoing results.
Other Non-GAAP Adjustments
- Results of operations of businesses exited/to be exited: We exclude the results of operations of our legacy businesses that we have exited, or to be exited, from our Non-GAAP results. These legacy businesses include our light commercial business that we exited starting this first fiscal quarter of 2022 to reinforce the Company's strategic direction to focus solely on the residential solar market,
Hillsboro, Oregon facility that ceased manufacturing and revenue generation in the first quarter of 2021, as well as, results of our legacy power plant and legacy O&M businesses. We are not doing new activities for these businesses, and the remaining activities comprise of true-up of estimated milestones payments, settlement of certain warranty obligations on projects and other wind-down activities. As such, these are excluded from our non-GAAP results as they are not reflective of our ongoing operating results.
- Loss/Gain on sale and impairment of residential lease assets: In fiscal 2018 and 2019, in an effort to sell all the residential lease assets owned by us, we sold membership units representing a 49% membership interest in majority of its residential lease business and retained a 51% membership interest. We record an impairment charge based on the expected fair value for a portion of residential lease assets portfolio that was retained. Any charges or credits on these remaining unsold residential lease assets impairment, as well as its corresponding depreciation savings, are excluded from our non-GAAP results as they are not reflective of ongoing operating results.
- Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.
- Litigation: We may be involved in various instances of litigation, claims and proceedings that result in payments or recoveries. We exclude gains or losses associated with such events because the gains or losses do not reflect our underlying financial results in the period incurred. We also exclude expenses pertaining to litigation relating to businesses that discontinued as a result of spin-off of Maxeon Solar, for which we are indemnifying them. We believe that it is appropriate to exclude such charges from our non-GAAP results as they are not reflective of ongoing operating results.
- Transaction-related costs: In connection with material transactions such as acquisition or divestiture of a business, the company incurred transaction costs including legal and accounting fees. We believe that it is appropriate to exclude these costs from our non-GAAP results as they would not have otherwise been incurred as part of the business operations and therefore is not reflective of ongoing operating results.
- Amortization of intangible assets and software: We incur amortization of intangible assets as a result of acquisitions, primarily from the Blue Raven acquisition, which includes brand, non-compete arrangements, and purchased technology. In addition, we also incur amortization of our capitalized internal-use software costs once the software has been placed into service, until the end of the useful life of the software. We believe that it is appropriate to exclude these amortization charges from our non-GAAP results as they are non-recurring in nature, and are therefore not reflective of ongoing operating results.
- Executive transition costs: We incur non-recurring charges related to the hiring and transition of new executive officers. During fiscal 2021, we appointed a new chief executive officer, as well as other chief executives, and we are investing resources in those executive transitions, and in developing new members of management as we complete our transformation. We believe that it is appropriate to exclude these from our non-GAAP results as they are not reflective of ongoing operating results.
- Acquisition-related costs: We incurred certain costs in connection with the acquisition of Blue Raven, that are either paid as part of the transaction or will be paid in the coming year, but are considered post-acquisition compensation under the applicable GAAP framework due to the nature of such items. A majority of the expense incurred in fourth quarter of fiscal 2021 represents cash paid to certain employees of Blue Raven for settlement of their pre-existing share-based payment plan, in excess of the respective fair value. Other post-combination expenses include change in fair value of contingent consideration as well as deferred post-combination employment expense payable to certain Blue Raven employees and sellers. We believe that it is appropriate to exclude these from our non-GAAP results as they are directly related to the acquisition transaction and non-recurring in nature, and are therefore not reflective of ongoing operating results.
- Business reorganization costs: In connection with the spin-off of Maxeon into an independent, publicly traded company, we incurred and expect to continue to incur, non-recurring charges on third-party legal and consulting expenses, primarily to enable in separation of shared information technology systems and applications. We believe that it is appropriate to exclude these from our non-GAAP results as it is not reflective of ongoing operating results.
- Restructuring charges (credits): We incur restructuring expenses related to reorganization plans aimed towards realigning resources consistent with the company's global strategy and improving its overall operating efficiency and cost structure. Although the company has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. We believe that it is appropriate to exclude these from our non-GAAP results as it is not reflective of ongoing operating results.
- 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 (loss) and non-GAAP net income (loss) per diluted share. Our non-GAAP tax amount is based on estimated cash tax expense and reserves. We forecast our 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 our 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, or tax impact of non-recurring items.
- Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to adjustments described above, we exclude the impact of the following items during the period:
- Cash interest expense, net of interest income
- Provision for income taxes
- Depreciation
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 |
||||||
|
|
|
||||
GAAP revenue |
$ 350,277 |
347,830 |
$ 240,135 |
|||
Results of operations of businesses exited/to be exited |
(14,208) |
(318) |
(2,198) |
|||
Non-GAAP revenue |
$ 336,069 |
347,512 |
$ 237,937 |
|||
Adjustments to Gross Profit Margin: |
||||||
THREE MONTHS ENDED |
||||||
|
|
|
||||
GAAP gross profit from continuing operations |
$ 72,309 |
$ 60,245 |
$ 45,966 |
|||
Other adjustments: |
||||||
Results of operations of businesses exited/to be exited |
(260) |
1,586 |
6,911 |
|||
Executive transition costs |
378 |
— |
— |
|||
(Gain) loss on sale and impairment of residential lease |
(279) |
(275) |
(494) |
|||
Stock-based compensation expense |
899 |
708 |
537 |
|||
Non-GAAP gross profit |
$ 73,047 |
$ 62,264 |
$ 52,920 |
|||
GAAP gross margin (%) |
20.6% |
17.3% |
19.1% |
|||
Non-GAAP gross margin (%) |
21.7% |
17.9% |
22.2% |
|||
Adjustments to Net Income (Loss): |
||||||
THREE MONTHS ENDED |
||||||
|
|
|
||||
GAAP net (loss) income from continuing operations |
$ (2,166) |
$ 38,861 |
$ (47,147) |
|||
Adjustments based on IFRS: |
||||||
Mark-to-market (gain) loss on equity investments |
(1,315) |
(68,950) |
44,730 |
|||
Other adjustments: |
||||||
Results of operations of businesses exited/to be exited |
2,933 |
2,661 |
11,200 |
|||
(Gain) loss on sale and impairment of residential lease |
(279) |
(275) |
(5,383) |
|||
Litigation |
177 |
(9,311) |
5,133 |
|||
Stock-based compensation expense |
5,329 |
5,217 |
4,354 |
|||
Amortization of intangible assets and software |
1,978 |
1,579 |
— |
|||
Transaction-related costs |
964 |
(22) |
200 |
|||
Executive transition costs |
1,469 |
1,254 |
— |
|||
Business reorganization costs |
— |
(129) |
954 |
|||
Restructuring charges (credits) |
186 |
190 |
(105) |
|||
Acquisition-related costs |
5,808 |
18,764 |
— |
|||
Tax effect |
(12,186) |
14,257 |
(3,741) |
|||
Non-GAAP net income (loss) attributable to stockholders |
$ 2,898 |
$ 4,096 |
$ 10,195 |
|||
Adjustments to Net Income (loss) per diluted share: |
||||||
THREE MONTHS ENDED |
||||||
|
|
|
||||
Net income (loss) per diluted share |
||||||
Numerator: |
||||||
GAAP net (loss) income available to common |
$ (2,166) |
$ 38,861 |
$ (47,147) |
|||
Add: Interest expense on 4.00% debenture due 2023, |
— |
3,026 |
— |
|||
Add: Interest expense on 0.875% debenture due 2021, |
— |
— |
— |
|||
GAAP net income (loss) available to common |
$ (2,166) |
$ 41,887 |
$ (47,147) |
|||
Non-GAAP net income (loss) available to common |
$ 2,898 |
$ 4,096 |
$ 10,195 |
|||
Denominator: |
||||||
GAAP weighted-average shares |
173,376 |
173,019 |
171,200 |
|||
Effect of dilutive securities: |
||||||
Restricted stock units |
— |
2,788 |
— |
|||
0.875% debentures due 2021 |
— |
— |
— |
|||
4.00% debentures due 2023 |
— |
17,068 |
— |
|||
GAAP dilutive weighted-average common shares: |
173,376 |
192,875 |
171,200 |
|||
Non-GAAP weighted-average shares |
173,376 |
173,019 |
171,200 |
|||
Effect of dilutive securities: |
||||||
Restricted stock units |
1,399 |
2,788 |
4,113 |
|||
4.00% debentures due 2023 |
— |
— |
17,068 |
|||
Non-GAAP dilutive weighted-average common |
174,775 |
175,807 |
192,381 |
|||
GAAP dilutive net (loss) income per share - continuing |
$ (0.01) |
$ 0.22 |
$ (0.28) |
|||
Non-GAAP dilutive net income (loss) per share - |
$ 0.02 |
$ 0.02 |
$ 0.05 |
|||
1In accordance with the if-converted method, net (loss) income available to common stockholders excludes interest expense related to the 0.875% and 4.00% |
Adjusted EBITDA: |
||||||
THREE MONTHS ENDED |
||||||
|
|
|
||||
GAAP net (loss) income from continuing operations |
$ (2,166) |
$ 38,861 |
$ (47,147) |
|||
Mark-to-market (gain) loss on equity investments |
(1,315) |
(68,950) |
44,730 |
|||
Other adjustments: |
||||||
Results of operations of businesses exited/to be exited |
2,933 |
2,661 |
11,200 |
|||
(Gain) loss on sale and impairment of residential lease |
(279) |
(275) |
(5,383) |
|||
Litigation |
177 |
(9,311) |
5,133 |
|||
Stock-based compensation expense |
5,329 |
5,217 |
4,354 |
|||
Amortization of intangible assets and software |
1,978 |
1,579 |
— |
|||
Transaction-related costs |
964 |
(22) |
200 |
|||
Executive transition costs |
1,469 |
1,254 |
— |
|||
Business reorganization costs |
— |
(129) |
954 |
|||
Restructuring charges (credits) |
186 |
190 |
(105) |
|||
Acquisition-related costs |
5,808 |
18,764 |
— |
|||
Cash interest expense, net of interest income |
4,878 |
5,141 |
6,951 |
|||
(Benefit from) provision for income taxes |
(11,676) |
10,242 |
(5,124) |
|||
Depreciation |
2,873 |
2,508 |
3,029 |
|||
Adjusted EBITDA |
$ 11,159 |
$ 7,730 |
$ 18,792 |
FY 2022 GUIDANCE |
|
(in thousands) |
FY 2022 |
Residential Customers |
73,000 - 80,000 |
Residential Adjusted EBITDA/Customer1 |
|
Adjusted EBITDA |
|
Net Income (GAAP) |
|
- Excluding Product & Digital operating expenses for Residential only.
- Adjusted EBITDA guidance for FY 2022 includes net adjustments that increase GAAP net income by approximately
$45 million primarily relating to the following adjustments: stock-based compensation expense, results of operations of businesses exited/to be exited, mark-to-market (gain) loss on equity investments, (gain) loss on business divestitures, net, acquisition-related costs, interest expense, depreciation and amortization, income taxes, and other non-recurring adjustments.
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SOURCE
Investors: Mike Weinstein, 510-260-8585, Mike.Weinstein@sunpower.com; Media: Sarah Spitz, 832-444-7151, Sarah.Spitz@sunpower.com