Trina Solar Announces Receipt of Favorable Arbitration Award and Adjusts Fourth Quarter and Full Year 2013 Earnings Results
CHANGZHOU, China, March 20, 2014 /PRNewswire/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV") modules, solutions, and services, today announced it has received US$20.4 million from a customer in an arbitration settlement involving an outstanding account balance under a solar module purchase agreement. The arbitration panel determined that Trina Solar was entitled to US$20.4 million, which included the full amount of the outstanding accounts receivable of US$17.4 million sought by the Company, plus sales tax and accrued interests.
Ms. Teresa Tan, CFO of Trina Solar, said, "We are pleased to see that our efforts to pursue outstanding accounts receivable in overseas markets are delivering positive results. Sound financial management is a key focus for Trina Solar. We remain strongly committed to maintaining a healthy balance sheet to support Trina's long-term growth."
The arbitration fund was received subsequent to the Company's fourth quarter and full year 2013 earnings results. As a result, the accounts receivable provision of US$5.7 million for bad debt previously accrued has been reversed in the fourth quarter of 2013. Consequently, related financial numbers previously stated in the Company's fourth quarter and full year 2013 earnings release are being adjusted to reflect this event.
For a comparison of the difference in the financial numbers, please refer to the tables below. To access the Company's full adjusted financial results for the fourth quarter and full year 2013, please refer to the full income statements and balance sheets attached at the end of this press release.
| Trina Solar Limited |
||||||
| Unaudited Condensed Consolidated Statements of Operations |
||||||
| (US dollars in thousands, except ADS and share data) |
||||||
| For the Three Months Ended |
For Year Ended |
|||||
| Line Items |
Adjusted |
Previous |
Adjusted |
Previous |
||
| General and administrative expenses |
19,741 |
25,445 |
103,523 |
109,228 |
||
| Total operating expenses |
59,314 |
65,018 |
256,273 |
261,978 |
||
| Operating income (loss) |
19,807 |
14,103 |
(38,079) |
(43,784) |
||
| Income (loss) before income taxes |
14,124 |
8,420 |
(85,266) |
(90,971) |
||
| Net income (loss) |
15,258 |
9,554 |
(72,236) |
(77,940) |
||
| Net income (loss) attributable to Trina Solar Limited |
15,464 |
9,760 |
(72,026) |
(77,730) |
||
| Earnings (loss) per ADS Basic Diluted |
0.22 0.21 |
0.14 0.13 |
(1.01) (1.01) |
(1.09) (1.09) |
||
| Trina Solar Limited |
||||||
| Unaudited Condensed Consolidated Statements of Comprehensive Income |
||||||
| (US dollars in thousands) |
||||||
| For the Three Months Ended |
For Year Ended |
|||||
| Line Items |
Adjusted |
Previous |
Adjusted |
Previous |
||
| Net income (loss) |
15,258 |
9,554 |
(72,236) |
(77,940) |
||
| Comprehensive income (loss) |
18,114 |
12,410 |
(66,039) |
(71,743) |
||
| Comprehensive income (loss) attributable to Trina Solar Limited |
18,321 |
12,617 |
(65,830) |
(71,534) |
||
| Trina Solar Limited |
|||
| Unaudited Condensed Consolidated Balance Sheets Dec. 31, 2013 |
|||
| (US dollars in thousands) |
|||
| Line Items |
Adjusted |
Previous |
|
| Accounts receivable, net |
435,092 |
429,387 |
|
| Total Currents assets |
1,521,701 |
1,515,996 |
|
| TOTAL ASSETS |
2,567,229 |
2,561,525 |
|
| Retained earnings |
143,369 |
137,665 |
|
| Total Trina Solar Limited shareholder's equity |
822,196 |
816,492 |
|
| Total equity |
822,479 |
816,775 |
|
| TOTAL LIABILITIES AND EQUITY |
2,567,229 |
2,561,525 |
|
About Trina Solar Limited
Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company's industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the Company's ability to operate as a public company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
For further information, please contact:
| Trina Solar Limited |
Brunswick Group Phone: + (86) 21-6039-6388 (Shanghai) Email: [email protected] |
| Yvonne Young |
| Trina Solar Limited |
|||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations |
|||||||||||||||
| (US dollars in thousands, except ADS and share data) |
|||||||||||||||
| For the Three Months Ended |
For Year Ended |
||||||||||||||
| Dec. 31, |
Sep. 30, |
Dec. 31, 2012 |
Dec. 31, |
Dec. 31, |
|||||||||||
| Net revenues |
$ 525,638 |
$ 548,386 |
$ 302,746 |
$1,774,971 |
$1,296,655 |
||||||||||
| Cost of revenues |
446,517 |
464,955 |
297,112 |
1,556,777 |
1,239,412 |
||||||||||
| Gross profit |
79,121 |
83,431 |
5,634 |
218,194 |
57,243 |
||||||||||
| Operating expenses |
|||||||||||||||
| Selling expenses |
33,566 |
37,511 |
30,350 |
132,823 |
118,885 |
||||||||||
| General and administrative expenses |
19,741 |
35,527 |
40,320 |
103,523 |
176,719 |
||||||||||
| Research and development expenses |
6,007 |
4,360 |
5,392 |
19,926 |
26,511 |
||||||||||
| Total operating expenses |
59,314 |
77,398 |
76,062 |
256,273 |
322,115 |
||||||||||
| Operating income (loss) |
19,807 |
6,033 |
(70,428) |
(38,079) |
(264,872) |
||||||||||
| Foreign exchange gain (loss) |
1,064 |
8,050 |
2,582 |
(13,576) |
908 |
||||||||||
| Interest expenses |
(8,975) |
(13,355) |
(12,682) |
(48,445) |
(51,887) |
||||||||||
| Interest income |
770 |
1,335 |
1,244 |
3,958 |
8,552 |
||||||||||
| Gain (loss) on change in fair value of derivative |
729 |
(79) |
2,153 |
2,180 |
8,542 |
||||||||||
| Other income, net |
729 |
2,995 |
1,209 |
8,696 |
6,797 |
||||||||||
| Income (loss) before income taxes |
14,124 |
4,979 |
(75,922) |
(85,266) |
(291,960) |
||||||||||
| Income tax benefit (expense) |
1,134 |
4,918 |
(11,256) |
13,030 |
25,405 |
||||||||||
| Net income (loss) |
15,258 |
9,897 |
(87,178) |
(72,236) |
(266,555) |
||||||||||
| Loss attributable to the noncontrolling interests |
206 |
4 |
- |
210 |
- |
||||||||||
| Net income (loss) attributable to Trina Solar Limited |
$ 15,464 |
$ 9,901 |
$ (87,178) |
$ (72,026) |
$ (266,555) |
||||||||||
| Earnings (loss) per ADS* |
|||||||||||||||
| Basic |
$ 0.22 |
$ 0.14 |
$ (1.23) |
$ (1.01) |
$ (3.77) |
||||||||||
| Diluted |
$ 0.21 |
$ 0.14 |
$ (1.23) |
$ (1.01) |
$ (3.77) |
||||||||||
| Weighted average ADS outstanding* |
|||||||||||||||
| Basic |
71,064,192 |
71,017,284 |
70,772,050 |
71,071,055 |
70,696,594 |
||||||||||
| Diluted |
72,526,455 |
71,757,097 |
70,772,050 |
71,071,055 |
70,696,594 |
||||||||||
| * "ADS" refers to any of our American depository shares, each representing 50 ordinary shares. |
|||||||||||||||
| Trina Solar Limited |
|||||||||||||||
| Unaudited Condensed Consolidated Statements of Comprehensive Income |
|||||||||||||||
| (US dollars in thousands) |
|||||||||||||||
| For the Three Months Ended |
For Year Ended |
||||||||||||||
| Dec. 31, 2013 |
Sep. 30, 2013 |
Dec. 31, 2012 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||||||||
| Net income (loss) |
$ 15,258 |
$ 9,897 |
$ (87,178) |
(72,236) |
(266,555) |
||||||||||
| Other comprehensive income (loss): |
|||||||||||||||
| Foreign currency translation adjustments |
2,856 |
(1,021) |
(877) |
6,197 |
(2,985) |
||||||||||
| Comprehensive income (loss) |
18,114 |
8,876 |
(88,055) |
(66,039) |
(269,540) |
||||||||||
| Comprehensive loss attributable to non-controlling interests |
207 |
4 |
- |
209 |
- |
||||||||||
| Comprehensive income (loss) attributable to Trina Solar Limited |
$ 18,321 |
$ 8,880 |
$ (88,055) |
$ (65,830) |
$ (269,540) |
||||||||||
| Trina Solar Limited |
||||||||
| Unaudited Condensed Consolidated Balance Sheets |
||||||||
| (US dollars in thousands) |
||||||||
| Dec. 31, |
Sep. 30, |
Dec. 31, |
||||||
| 2013 |
2013 |
2012 |
||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ 486,686 |
$ 448,602 |
$ 807,276 |
|||||
| Restricted cash |
74,720 |
109,180 |
110,920 |
|||||
| Inventories |
244,532 |
278,124 |
318,504 |
|||||
| Project assets, current portion |
73,305 |
58,948 |
7,960 |
|||||
| Accounts receivable, net |
435,092 |
603,009 |
390,157 |
|||||
| Current portion of advances to suppliers, net |
68,253 |
65,518 |
57,846 |
|||||
| Prepaid expenses and other current assets, net |
139,113 |
98,455 |
72,824 |
|||||
| Total current assets |
1,521,701 |
1,661,836 |
1,765,487 |
|||||
| Property, plant and equipment, net |
889,752 |
838,841 |
893,340 |
|||||
| Project assets, net of current portion |
6,097 |
10,271 |
23,398 |
|||||
| Land use rights, net |
43,287 |
43,451 |
41,961 |
|||||
| Advances to suppliers, net of current portion |
41,908 |
69,405 |
86,993 |
|||||
| Investment in equity affiliates |
11,770 |
12,899 |
10,961 |
|||||
| Deferred income tax assets, net |
50,901 |
62,411 |
41,048 |
|||||
| Other noncurrent assets |
1,813 |
1,364 |
1,669 |
|||||
| TOTAL ASSETS |
$ 2,567,229 |
$ 2,700,478 |
$ 2,864,857 |
|||||
| LIABILITIES AND EQUITY |
||||||||
| Current liabilities: |
||||||||
| Short-term borrowings, including current portion of |
$ 935,590 |
$ 965,569 |
$ 875,821 |
|||||
| Accounts payable |
476,533 |
573,744 |
428,626 |
|||||
| Convertible senior notes |
- |
- |
83,582 |
|||||
| Accrued expenses and other current liabilities |
128,420 |
122,316 |
91,126 |
|||||
| Total current liabilities |
1,540,543 |
1,661,629 |
1,479,155 |
|||||
| Long-term bank borrowings, excluding current portion |
100,502 |
136,136 |
415,150 |
|||||
| Accrued warranty costs |
81,743 |
76,924 |
65,780 |
|||||
| Other noncurrent liabilities |
21,962 |
23,765 |
22,987 |
|||||
| Total liabilities |
1,744,750 |
1,898,454 |
1,983,072 |
|||||
| Ordinary shares |
36 |
40 |
40 |
|||||
| Additional paid-in capital |
663,388 |
661,304 |
656,944 |
|||||
| Retained earnings |
143,369 |
127,905 |
215,395 |
|||||
| Accumulated other comprehensive income |
15,403 |
12,546 |
9,206 |
|||||
| Total Trina Solar Limited shareholders' equity |
822,196 |
801,795 |
881,585 |
|||||
| Non-controlling interests |
283 |
229 |
200 |
|||||
| Total equity |
822,479 |
802,024 |
881,785 |
|||||
| TOTAL LIABILITIES AND EQUITY |
$ 2,567,229 |
$ 2,700,478 |
$ 2,864,857 |
|||||
SOURCE Trina Solar Limited
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