Canadian Solar Reports Fourth Quarter and Full Year 2009 Results
ONTARIO, Canada, March 3 /PRNewswire-Asia-FirstCall/ -- Canadian Solar Inc. ("the Company", "Canadian Solar" or "we") (Nasdaq: CSIQ), one of the world's largest solar companies, today announced its unaudited financial results for the fourth quarter and the year ended December 31, 2009.
Financial Highlights
-- 4Q09 net revenues of $287.0 million, compared to 3Q09 net revenues of
$213.1 million and 4Q08 revenues of $68.8 million.
-- 4Q09 shipments of 155.5 MW, compared to 3Q09 shipments of 102.6 MW and
4Q08 shipments of 19.6MW. 4Q09 gross margin of 15.4%, compared to 3Q09
gross margin of 16.3% and 4Q08 gross margin of negative 42.7%. 4Q09 net
income per diluted share of $0.35 compared to 3Q09 net income per
diluted share of $0.69 and 4Q08 net loss of $1.38 per diluted share.
-- Full year 2009 net revenues of $663.8 million, compared with full year
2008 net revenues of $705.0 million.
-- Full year 2009 shipments of 325.5 MW, a 94% increase over full year
2008 shipments of 167.5 MW.
For the fourth quarter of 2009, net revenues were $287.0 million, compared to net revenues of $68.8 for the fourth quarter of 2008 and $213.1 million for the third quarter of 2009. Net income for the fourth quarter was $14.9 million, or $0.35 per diluted share, compared to a net loss of $49.2 million, or $1.38 per diluted share, for the fourth quarter of 2008.
4Q09 shipment is 155.5 MW including 146.5 MW of module sales, approximately 6.5 MW of off-spec solar cells, and 2.5 MW of modules shipped to a solar power plant project, which the Company built and sold during the quarter. The net proceeds of these project sales are classified as investment income in the profit and loss statement.
For the full year 2009, net revenues were $663.8 million, compared to $705.0 million for full year 2008. Net income for the full year 2009 was $53.1 million, or $1.41 per diluted share, compared to a net loss for the full year 2008 of $7.5 million, or $0.24 per diluted share.
Dr. Shawn Qu, Chairman and CEO, commented: "In 2009 we rebounded from net revenues of $49.5 million in the first quarter to over $287.0 million in the fourth quarter; a record for both our quarterly revenue and shipments. The rapid quarterly shipment and revenue increase we achieved is due to our world-wide market share growth and improving cost structure. We delivered products to more than 300 customers in seven core country markets and 18 secondary markets. In 2010 we expect shipments growth in ten core countries: Germany, Italy, Spain, the Czech Republic, France, the U.S., Canada, Japan, Korea and China. We are excited about our growth potential in these markets with the increasing brand recognition."
Arthur Chien, CFO of CSI, noted: "Gross profit increased significantly to more than $40 million in 4Q09, compared to a loss of nearly $30 million in 4Q08. We achieved this increase by investing in our business to support revenue growth opportunities. Accordingly there were increased sales, general and administrative expenses during the quarter, both to support increased year end shipments and to prepare ourselves for ongoing growth in sales in 2010. 4Q09 results also reflect the impact of a $5.1 million foreign exchange loss. Overall, we achieved an increase in net income for 2009 of $53.1 million compared to a loss in 2008 of $7.5 million. Both inventory days and accounts receivable days declined quarter over quarter, while our cash position, leverage ratios and balance sheet improved considerably year over year. We expect these improvements to continue into 2010."
Revenue by Geography
Revenue by Geography
4Q 2009 3Q 2009 4Q 2008 Year 2009 Year 2008
Region US$M % US$M % US$M % US$M % US$M %
Europe 236.7 82.5% 186.6 87.6% 52.8 76.7% 526.3 79.3% 631.1 89.5%
America 24.8 8.6% 12.9 6.0% 6.4 9.3% 56.5 8.5% 32.3 4.6%
Asia and
others 25.5 8.9% 13.6 6.4% 9.6 14.0% 81.0 12.2% 41.6 5.9%
Total 287.0 100.0% 213.1 100.0% 68.8 100.0% 663.8 100.0% 705.0 100.0%
Recent Developments
-- Enhanced selective emitter products are expected to begin shipping in
March 2010.
-- Produced first metal wrap-through (MWT) cells, and commenced testing
and engineering work to determine the commercialization timeline of
this product.
-- Dual-axis trackers and specialty residential rooftop module products
are expected to begin shipping in March 2010.
-- Commenced the site selection and approvals process to establish a
module manufacturing facility in Ontario, Canada.
-- Entered into an 18 MW distribution deal with West Holding Ltd of Japan
and a similar arrangement with another Japanese distributor. Started
regular shipments in December 2009
-- Entered into a 60 MW contract with Fire Energy Group. Fire Energy
Group will promote and distribute Canadian Solar's PV products in
Spain, Germany, Italy, the U.S., the Czech Republic, Morocco and China.
-- The Company completed and sold its first 250 kW PV system in Ontario.
-- Five of our solar module products are currently ranked amongst the
highest performing in California's mandatory PV USA (PTC) ratings for
P-Type modules. PTC ratings are becoming a widely accepted standard for
measuring real-world module power and performance.
-- Tai Seng Png, Vice President, Business Integration, resigned effective
April 12, 2010. His duties are being assumed by Charlotte Xi Klein,
Vice President, Global Operations.
Financial Outlook
The outlook below is based on the Company's current views with respect to operating and market conditions, its current order book and customers' forecasts, which are subject to change. The risks to our guidance also include changes in product pricing, availability and pricing of feedstock, and the project financing and exchange rate environment.
For the first quarter of 2010, we expect shipments of approximately 180 MW to 190 MW and gross margin in the mid-teens.
For the second quarter of 2010, we expect continued growth in MW shipments and a relatively stable pricing environment.
For the full year 2010, we reiterate expectations that shipments will be in the range of 600 MW to 700 MW. However, we recognize that the demand for our high quality solar modules will come in very strong from all major markets, including Germany, Italy, the U.S., the Czech Republic, Korea and Spain. We also expect strong growth from our newer markets, such as Canada, Japan and France. We plan to revisit and update our annual guidance as the year progresses.
Given the strong demand forecast, we expect to have an equal or slightly higher volume of externally purchased cells than internally produced cells in both Q1 and Q2. We are targeting to maintain a mid-teen gross margin level with this supply chain structure. The Company is on track to increase our internal cell production capacity from today's 420 MW to 700 MW by July 2010. We also believe that we are on track to improve the yield of our newly ramped-up ingot and wafer facility and expect a positive margin contribution in Q2. We also intend to further increase our internal ingot and wafer capacity in 2010.
Dr. Shawn Qu continued: "Demand is expected to be very strong for all of 2010. In the 1Q10, we are expecting shipments growth over 4Q09 with further sequential shipments growth in 2Q10. For the second half of the year, we expect the improved cost structure to result from both lower processing costs and from increased internal cell capacity. Finally some of our new premium products and new markets are expected to contribute positively to our earnings, especially in Q3 and Q4."
Investor Conference Call/Webcast Details
The Company will hold a conference call to discuss its financial results for the fourth quarter 2009 and business outlook today, Wednesday, March 3, 2010 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. March 3, 2010 in Hong Kong). The dial-in phone number is +1-617-597-5343, with passcode 61962000. A live webcast of the conference call will also be available on Canadian Solar's website at http://www.canadiansolar.com .
A replay of the call will be available approximately one hour after the conclusion of the live call through 10:00 a.m. on March 10, 2010, U.S. Eastern Time (11:00 p.m., March 10, 2010 in Hong Kong) by telephone at +1-617-801-6888. To access the replay, use passcode 21133073. A webcast replay will also be available at http://www.canadiansolar.com .
About Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar Inc. is one of the world's largest solar companies. As a leading vertically integrated provider of ingot, wafer, solar cell, solar module and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe and Asia, Canadian Solar provides premium quality, cost-effective and environmentally friendly solar solutions to support global, sustainable development. For more information, visit http://www.canadiansolar.com .
Safe Harbor/Forward-Looking Statements
Certain statements in this press release including statements regarding expected future demand, shipment volumes, production capacity, outsourcing volumes and cost structures, are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers, including customers of our silicon materials sales; changes in demand from major markets such as Germany and Canada; risks associated with building our new Ontario facility; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling prices; delays in new product introduction; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20-F originally filed on June 8, 2009, as amended by its report on Form 20-F/A filed on October 14, 2009. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.
Canadian Solar Inc.
Unaudited Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, Except Share And Per Share Data And Unless
Otherwise Stated)
Item 2009 Q4 2009 Q3 2008 Q4 2009 1~12 2008 1~12
Net revenues $286,996 $213,126 $68,824 $663,763 $705,006
Cost of
revenues 242,738 178,392 98,233 565,586 633,999
Gross profit
(loss) 44,258 34,734 (29,409) 98,177 71,008
Selling
expenses 10,453 6,564 1,768 22,127 10,608
General and
admini-
strative
expenses 11,900 7,327 13,332 30,155 34,510
Research and
development
expenses 1,212 964 473 3,175 1,825
Total operating
expenses 23,565 14,855 15,573 55,457 46,943
Income (loss)
from
operations 20,693 19,879 (44,982) 42,720 24,065
Interest
expenses (2,794) (2,498) (2,484) (9,459) (12,201)
Interest
income 916 756 2,552 5,084 3,531
Gain on debt
extinguish-
ment -- -- -- -- 2,430
Debt
conversion
expenses -- -- -- -- (10,170)
Gain (Loss)
on foreign
currency
derivatives 935 (1,381) 7,031 9,870 14,455
Investment
income 1,788 -- -- 1,788 --
Exchange
gain (loss) (5,147) 9,665 (10,387) 7,680 (19,989)
Income (loss)
before taxes 16,391 26,421 (48,270) 57,683 2,120
Income tax (1,352) (1,103) (974) (4,438) (9,654)
Net income
(loss) 15,039 25,318 (49,244) 53,245 (7,534)
Less: net
income (loss)
attributable
to non-
controlling
interest 157 (25) -- 132 --
Net income
(loss)
attributable
to CSI $14,882 $25,343 $(49,244) $53,113 $(7,534)
Basic earnings
(loss) per
share $0.36 $0.71 $(1.38) $1.43 $(0.24)
Basic weighted
average
outstanding
shares 41,349,901 35,765,185 35,686,313 37,102,723 31,566,503
Diluted
earnings
(loss) per
share $0.35 $0.69 $(1.38) $1.41 $(0.24)
Diluted
weighted
average
outstanding
shares 42,421,414 36,571,071 35,686,313 37,743,464 31,566,503
Note: The fourth quarter 2008 net profit was decreased by $757,748 and the
twelve months to December, 2008 net profit was increased by $1.9 million,
as compared to the fourth quarter 2008 and the twelve months to December
30, 2008 net profit as per prior press release announcements due to
retrospective application of ASC 470-20 on January 1, 2009.
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands of U.S. Dollars)
Item December 31, 2009 December 31, 2008
Assets
Current assets
Cash and cash equivalents $160,111 $115,661
Restricted cash 179,390 20,622
Accounts receivable, net of
allowance for doubtful accounts 199,339 51,611
Inventories 138,759 92,683
Value added tax recoverable 39,494 17,493
Advances to suppliers 17,207 24,654
Foreign currency
derivative assets -- 6,974
Prepaid and other current assets 28,663 9,317
Current assets - subtotal 762,963 339,015
Property, plant and equipment, net 217,136 165,542
Intangible assets 1,824 263
Advances to suppliers 44,054 43,087
Prepaid land use right 12,535 12,782
Investment 7,101 3,000
Deferred tax assets - non current 11,044 6,966
Total assets 1,056,657 570,655
Liabilities and equity
Current liabilities
Short term borrowings 251,702 110,665
Accounts payable 92,271 29,957
Notes payable 105,218 629
Other payables 34,906 24,043
Advances from customers 3,644 3,571
Amounts due to related parties 261 94
Foreign currency
derivative liabilities 523 --
Other current liabilities 13,672 4,333
Current liabilities - subtotal 502,197 172,663
Accrued warranty costs 17,130 10,847
Liability for uncertain
tax positions 10,705 8,704
Convertible notes 866 830
Long term borrowings 29,290 45,357
Total liabilities 560,188 238,401
Common shares 500,322 395,154
Additional paid in capital (61,269) (66,705)
Retained earnings
(Accumulated deficit) 42,009 (11,104)
Accumulated other
comprehensive income 15,122 14,909
Total Canadian Solar Inc.
stockholders' equity 496,184 332,254
Non-controlling interest 285 --
Total equity 496,469 332,254
Total liabilities and equity 1,056,657 570,655
SOURCE Canadian Solar Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article