SunPower Reports Fourth Quarter and Fiscal Year 2014 Results
- Q4 2014 GAAP Earnings Per Share of $0.83, Non-GAAP Earnings Per Share of $0.26
- FY 2014 GAAP Earnings Per Share of $1.55, Non-GAAP Earnings Per Share of $1.33
- Announced Intention to Form Joint YieldCo Vehicle with First Solar
SAN JOSE, Calif., Feb. 24, 2015 /PRNewswire/ -- SunPower Corp. (NASDAQ: SPWR) today announced financial results for its fourth quarter and fiscal year ended Dec. 28, 2014.
($ Millions, except percentages and per-share data) |
4th Quarter 2014 |
3rd Quarter 2014 |
4th Quarter 2013 |
2014 |
2013 |
GAAP revenue |
$1,164.2 |
$662.7 |
$638.1 |
$3,027.3 |
$2,507.2 |
GAAP gross margin |
22.3% |
16.4% |
20.5% |
20.6% |
19.6% |
GAAP net income |
$134.7 |
$32.0 |
$22.3 |
$245.9 |
$95.6 |
GAAP net income per diluted share |
$0.83 |
$0.20 |
$0.15 |
$1.55 |
$0.70 |
Non-GAAP revenue1 |
$609.7 |
$704.2 |
$758.2 |
$2,618.6 |
$2,602.3 |
Non-GAAP gross margin1 |
20.4% |
16.7% |
20.4% |
19.6% |
20.4% |
Non-GAAP net income1 |
$39.4 |
$46.4 |
$72.2 |
$205.1 |
$221.0 |
Non-GAAP net income per diluted share1 |
$0.26 |
$0.30 |
$0.47 |
$1.33 |
$1.68 |
1Information about SunPower's use of non-GAAP financial information is provided under "Use of Non-GAAP Financial Measures" below. |
"2014 was a very important year for SunPower in terms of our strategic development. We significantly expanded our international power plant market footprint while constructing the world's largest solar power plant in California. On the distributed generation (DG) side of our business, we made a number of acquisitions and strategic investments that we believe position SunPower as a leader in the emerging smart energy eco-system," said Tom Werner, SunPower president and CEO. "Exiting the year, we saw continued strength in both our power plant and DG businesses while executing well against our long term cost reduction roadmap. We also expect production of our first PV cell from our new Fab 4 facility mid-year 2015 as we continue our capacity expansion plans.
"Yesterday we announced another important strategic development, that we are in advanced negotiations to form a joint YieldCo vehicle with First Solar, Inc. into which each company expects to contribute a portfolio of selected solar generation assets. We believe that this joint venture will drive significant long-term value for our shareholders and we will provide additional details about the joint venture when they are finalized.
"North America was again our highest contributing region in the fourth quarter. Construction of the 579-megawatt (MW) ac Solar Star Projects for Berkshire Hathaway Energy and Southern California Edison is on plan with more than 412-MWac now connected to the grid, and with substantial completion expected by the end of the second quarter. Construction of our 135-MW Quinto project is proceeding with expected completion by the end of this year," continued Werner.
"The company continued to see significant demand in the commercial sector during the fourth quarter with strong repeat customer bookings as we added to our $1.4 billion pipeline. In the residential channel, bookings rose sequentially for cash, loan and lease. Customers clearly value our broad range of financing options that are tailored to their particular circumstances and desires.
"SunPower also announced several strategic investments during the quarter that enhanced our capabilities in what we call Smart Energy. Our exclusive commercial relationships with Sunverge Energy, Inc. in the area of residential battery storage and Tendril, Inc. in energy information and management software, position SunPower very well to offer comprehensive solar-based energy solutions that allow our customers greater control over their daily energy consumption and their overall energy bill. When combined with our recent acquisitions of SolarBridge Technologies, Inc. micro-inverter technology, and our new dealer operations software suite, we are rapidly broadening our differentiated residential Smart Energy platform.
"In EMEA, we saw volume increases and stable pricing in our distributed generation business and we are close to completing the restructuring of our European DG business aimed at improving profitability. In power plants, our strong position in France continues to yield promising momentum and solid bookings. In South Africa, construction of our 86-MWac Prieska project remains on plan as we ramp our 160-MW South African panel manufacturing facility to support our large scale project efforts in this region.
"We remain very positive on Asia Pacific. Our high efficiency panel technology with industry leading quality and reliability has allowed us to maintain a leading position in the Japanese rooftop market. In China, we are seeing significant traction through our manufacturing and project development joint ventures. With 250-MW of expected installations in 2015 and a pipeline of more than 4-GW, these two joint ventures uniquely position SunPower to participate meaningfully in the world's largest solar power market," Werner concluded.
"SunPower exited 2014 on a very strong note as our solid execution and demand for our high efficiency technology enabled us to meet or exceed our financial targets for the quarter," said Chuck Boynton, SunPower CFO. "We ended the year with total liquidity of $1.2 billion and successfully managed our working capital needs. We continued to add assets to our holdco project portfolio during the quarter and were pleased to announce our intention to form a joint YieldCo vehicle with First Solar. We believe this strategic approach will enable both companies to maximize project economics, lower the cost of capital and generate significant long term shareholder returns."
Fourth-quarter fiscal 2014 non-GAAP results include net adjustments that, in the aggregate, decrease net income by $95.3 million, including gross margin adjustments of ($196.0) million and $56.8 million related to the timing of revenue recognition from utility and power plant projects, and, loss on arbitration ruling, respectively, $13.7 million in stock-based compensation expense, $5.6 million in non-cash interest expense, $13.1 million in restructuring charges related to the November 2014 Restructuring Plan, $2.1 million of other adjustments and $9.4 million in tax effect.
First Quarter 2015 Financial Outlook
The company's first quarter 2015 consolidated non-GAAP guidance is as follows: revenue of $410 million to $460 million, gross margin of 18 percent to 20 percent, net income per diluted share of $0.05 to $0.15 and megawatts recognized in the range of 240 megawatts to 270 megawatts. On a GAAP basis, the company expects revenue of $420 million to $470 million, gross margin of 18 percent to 20 percent and net loss per diluted share of $0.20 to $0.10.
SunPower believes that its underlying business fundamentals for 2015 remain strong. However, as a result of company's announcement on February 23, 2015 of its intention to form a joint YieldCo vehicle with First Solar, the company is withdrawing its previously disclosed fiscal year 2015 guidance until such time the company can finalize the impact of the proposed YieldCo vehicle on its expected financial performance. The company will provide an update at a later date.
The company will host a conference call for investors this morning to discuss its fourth-quarter and fiscal year 2014 performance at 5:30 a.m. Pacific Time. The call will be webcast and can be accessed from SunPower's website at http://investors.sunpower.com/events.cfm.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP historical figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release. Please note that the company has posted supplemental information and slides related to its fourth-quarter 2014 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm. The capacity of power plants in this release is described in approximate megawatts on a direct current (dc) basis unless otherwise noted.
About SunPower Corp.
SunPower Corp. (NASDAQ: SPWR) designs, manufactures and delivers the highest efficiency, highest reliability solar panels and systems available today. Residential, business, government and utility customers rely on the company's quarter century of experience and guaranteed performance to provide maximum return on investment throughout the life of the solar system. Headquartered in San Jose, Calif., SunPower has offices in North America, Europe, Australia, Africa and Asia. For more information, visit www.sunpower.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) expanding our manufacturing capacity, including our Fab 4 ramp up; (b) anticipated construction timelines and milestones for our major projects; (c) growing demand in our North America commercial business as well as in residential leasing, and financing arrangements and capacity relating to our residential lease program; (d) financing strategies for our solar power systems, including any holdco strategies; (e) growing demand in Asia, particularly in Japan; (f) our growing international project pipeline; (g) expansion of our joint venture initiatives in China; (h) our efforts to reduce panel manufacturing costs and improve our competitive cost structure; (i) our positioning for long-term profitability; (j) strategically managing cash; (k) guidance for the first fiscal quarter of 2015, including non-GAAP revenue, gross margin, net income per diluted share and MW recognized and GAAP revenue, gross margin and net income per diluted share; (l) reducing operating expenses; (m) generating free cash flow; (n) additional leasing capacity; (o) optimization of our cost and capital structure and (p) our proposed yieldco joint venture with First Solar Inc.. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the industry and downward pressure on average selling prices; (2) our liquidity, substantial indebtedness, and our ability to obtain additional financing for our projects and our customers; (3) risks relating to our residential lease business, including risks of customer default, challenges securing lease financing, and declining conventional electricity prices; (4) our ability to meet our cost reduction targets; (5) regulatory changes and the availability of economic incentives promoting use of solar energy; (6) challenges inherent in constructing and maintaining certain of our large projects, such as the Solar Star projects; (7) the success of our ongoing research and development efforts and commercialization of new products and services; (8) fluctuations in our operating results; (9) maintaining or increasing our manufacturing capacity, containing manufacturing costs, and other manufacturing difficulties that could arise; and (10) challenges managing our joint ventures. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owner
SUNPOWER CORPORATION |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(In thousands) |
|||
(Unaudited) |
|||
Dec. 28, |
Dec. 29, |
||
2014 |
2013 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 956,175 |
$ 762,511 |
|
Restricted cash and cash equivalents, current portion |
18,541 |
13,926 |
|
Accounts receivable, net |
504,316 |
360,594 |
|
Costs and estimated earnings in excess of billings |
187,087 |
31,787 |
|
Inventories |
208,573 |
245,575 |
|
Advances to suppliers, current portion |
98,129 |
58,619 |
|
Project assets - plants and land, current portion |
101,181 |
69,196 |
|
Prepaid expenses and other current assets |
328,845 |
646,270 |
|
Total current assets |
2,402,847 |
2,188,478 |
|
Restricted cash and cash equivalents, net of current portion |
24,520 |
17,573 |
|
Restricted long-term marketable securities |
7,158 |
8,892 |
|
Property, plant and equipment, net |
585,344 |
533,387 |
|
Solar power systems leased and to be leased, net |
390,913 |
345,504 |
|
Project assets - plants and land, net of current portion |
15,475 |
6,411 |
|
Advances to suppliers, net of current portion |
311,528 |
324,695 |
|
Long-term financing receivables, net |
269,587 |
175,273 |
|
Goodwill and other intangible assets, net |
37,981 |
- |
|
Other long-term assets |
311,829 |
298,477 |
|
Total assets |
$ 4,357,182 |
$ 3,898,690 |
|
Liabilities and Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 419,919 |
$ 443,969 |
|
Accrued liabilities |
331,034 |
358,157 |
|
Billings in excess of costs and estimated earnings |
83,440 |
308,650 |
|
Short-term debt |
18,105 |
56,912 |
|
Convertible debt, current portion |
245,325 |
455,889 |
|
Customer advances, current portion |
31,788 |
36,883 |
|
Total current liabilities |
1,129,611 |
1,660,460 |
|
Long-term debt |
218,657 |
93,095 |
|
Convertible debt, net of current portion |
700,079 |
300,079 |
|
Customer advances, net of current portion |
148,896 |
167,282 |
|
Other long-term liabilities |
555,344 |
523,991 |
|
Total liabilities |
2,752,587 |
2,744,907 |
|
Redeemable noncontrolling interests in subsidiaries |
28,566 |
- |
|
Equity: |
|||
Preferred stock |
- |
- |
|
Common stock |
131 |
122 |
|
Additional paid-in capital |
2,219,581 |
1,980,778 |
|
Accumulated deficit |
(560,598) |
(806,492) |
|
Accumulated other comprehensive loss |
(13,455) |
(4,318) |
|
Treasury stock, at cost |
(111,485) |
(53,937) |
|
Total stockholders' equity |
1,534,174 |
1,116,153 |
|
Noncontrolling interests in subsidiaries |
41,855 |
37,630 |
|
Total equity |
1,576,029 |
1,153,783 |
|
Total liabilities and equity |
$ 4,357,182 |
$ 3,898,690 |
|
SUNPOWER CORPORATION |
||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
(In thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||
Revenue: |
||||||||||
AMERICAS |
$ 1,001,571 |
$ 517,799 |
$ 382,650 |
$ 2,323,441 |
$ 1,676,472 |
|||||
EMEA |
52,933 |
44,633 |
154,285 |
288,533 |
450,659 |
|||||
APAC |
109,734 |
100,302 |
101,199 |
415,291 |
380,072 |
|||||
Total revenue |
1,164,238 |
662,734 |
638,134 |
3,027,265 |
2,507,203 |
|||||
Cost of revenue: |
||||||||||
AMERICAS |
736,930 |
414,615 |
291,657 |
1,759,639 |
1,299,701 |
|||||
EMEA |
50,612 |
46,029 |
129,921 |
250,735 |
419,416 |
|||||
APAC |
117,217 |
93,576 |
85,888 |
391,764 |
297,014 |
|||||
Total cost of revenue |
904,759 |
554,220 |
507,466 |
2,402,138 |
2,016,131 |
|||||
Gross margin |
259,479 |
108,514 |
130,668 |
625,127 |
491,072 |
|||||
Operating expenses: |
||||||||||
Research and development |
22,725 |
17,291 |
16,972 |
73,343 |
58,080 |
|||||
Selling, general and administrative |
74,500 |
68,394 |
76,125 |
288,321 |
271,481 |
|||||
Restructuring charges |
13,213 |
188 |
897 |
12,223 |
2,602 |
|||||
Total operating expenses |
110,438 |
85,873 |
93,994 |
373,887 |
332,163 |
|||||
Operating income |
149,041 |
22,641 |
36,674 |
251,240 |
158,909 |
|||||
Other expense, net |
(17,637) |
(15,366) |
(25,428) |
(66,626) |
(117,326) |
|||||
Income before income taxes and equity in earnings of |
131,404 |
7,275 |
11,246 |
184,614 |
41,583 |
|||||
Benefit from (provision for) income taxes |
(11,628) |
8,320 |
(8,985) |
(8,760) |
(11,905) |
|||||
Equity in earnings of unconsolidated investees |
1,833 |
1,689 |
1,611 |
7,241 |
3,872 |
|||||
Net income |
121,609 |
17,284 |
3,872 |
183,095 |
33,550 |
|||||
Net loss attributable to noncontrolling interests and redeemable |
13,106 |
14,749 |
18,466 |
62,799 |
62,043 |
|||||
Net income attributable to stockholders |
$ 134,715 |
$ 32,033 |
$ 22,338 |
$ 245,894 |
$ 95,593 |
|||||
Net income per share attributable to stockholders: |
||||||||||
- Basic |
$ 1.03 |
$ 0.24 |
$ 0.18 |
$ 1.91 |
$ 0.79 |
|||||
- Diluted |
$ 0.83 |
$ 0.20 |
$ 0.15 |
$ 1.55 |
$ 0.70 |
|||||
Weighted-average shares: |
||||||||||
- Basic |
131,393 |
131,204 |
121,464 |
128,635 |
120,819 |
|||||
- Diluted |
164,075 |
167,117 |
151,337 |
162,751 |
138,980 |
|||||
SUNPOWER CORPORATION |
||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||
Cash flows from operating activities: |
||||||||||
Net income |
$ 121,609 |
$ 17,284 |
$ 3,872 |
$ 183,095 |
$ 33,550 |
|||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||||
Depreciation and amortization expense |
33,671 |
25,727 |
25,067 |
108,795 |
98,191 |
|||||
Stock-based compensation |
13,652 |
13,725 |
14,575 |
55,592 |
45,678 |
|||||
Non-cash interest expense |
5,593 |
5,499 |
12,634 |
21,585 |
49,016 |
|||||
Equity in earnings of unconsolidated investees |
(1,833) |
(1,689) |
(1,611) |
(7,241) |
(3,872) |
|||||
Gain on contract termination |
- |
- |
- |
- |
(51,988) |
|||||
Excess tax benefit from stock-based compensation |
(2,379) |
- |
- |
(2,379) |
- |
|||||
Deferred income taxes and other tax liabilities |
23,549 |
(5,327) |
(1,179) |
21,656 |
1,138 |
|||||
Other, net |
1,567 |
(23) |
1,184 |
1,591 |
4,396 |
|||||
Changes in operating assets and liabilities, net of effect of acquisition: |
||||||||||
Accounts receivable |
14,429 |
(56,025) |
(7,365) |
(31,505) |
(53,756) |
|||||
Costs and estimated earnings in excess of billings |
(140,831) |
(14,393) |
10,776 |
(155,300) |
4,608 |
|||||
Inventories |
(25,107) |
21,884 |
32,300 |
(1,247) |
(6,243) |
|||||
Project assets |
(34,909) |
(31,670) |
20,019 |
(68,247) |
(22,094) |
|||||
Prepaid expenses and other assets |
352,896 |
(90,153) |
(80,667) |
205,545 |
39,123 |
|||||
Long-term financing receivables, net |
(17,205) |
(22,263) |
(36,096) |
(94,314) |
(107,531) |
|||||
Advances to suppliers |
(7,765) |
(6,097) |
(18,174) |
(26,343) |
(31,909) |
|||||
Accounts payable and other accrued liabilities |
61,144 |
16,837 |
13,830 |
45,768 |
120,599 |
|||||
Billings in excess of costs and estimated earnings |
(265,650) |
100,020 |
55,321 |
(225,210) |
83,100 |
|||||
Customer advances |
(10,082) |
(5,754) |
(11,610) |
(23,481) |
(39,577) |
|||||
Net cash provided by (used in) operating activities |
122,349 |
(32,418) |
32,876 |
8,360 |
162,429 |
|||||
Cash flows from investing activities: |
||||||||||
Decrease (increase) in restricted cash and cash equivalents |
(2,012) |
(203) |
521 |
(11,562) |
15,465 |
|||||
Purchases of property, plant and equipment |
(56,997) |
(25,190) |
(8,594) |
(102,505) |
(34,054) |
|||||
Cash paid for solar power systems, leased and to be leased |
(15,415) |
(10,622) |
(13,616) |
(50,974) |
(97,235) |
|||||
Cash paid for solar power systems |
(8,540) |
(4,917) |
(21,257) |
(13,457) |
(21,257) |
|||||
Proceeds from sales or maturities of marketable securities |
- |
- |
- |
1,380 |
100,947 |
|||||
Proceeds from sale of equipment to third-party |
- |
- |
- |
- |
645 |
|||||
Purchases of marketable securities |
- |
- |
- |
(30) |
(99,928) |
|||||
Cash paid for acquisitions, net of cash acquired |
(28,184) |
(1,000) |
- |
(35,078) |
- |
|||||
Cash paid for investments in unconsolidated investees |
(92,000) |
- |
(16,350) |
(97,013) |
(17,761) |
|||||
Net cash used in investing activities |
(203,148) |
(41,932) |
(59,296) |
(309,239) |
(153,178) |
|||||
Cash flows from financing activities: |
||||||||||
Proceeds from issuance of convertible debt, net of issuance costs |
- |
- |
- |
395,275 |
296,283 |
|||||
Cash paid for repurchase of convertible debt |
(97) |
(51) |
- |
(42,250) |
- |
|||||
Proceeds from settlement of 4.75% Bond Hedge |
- |
- |
- |
68,842 |
- |
|||||
Payments to settle 4.75% Warrants |
- |
- |
- |
(81,077) |
- |
|||||
Proceeds from settlement of 4.50% Bond Hedge |
17 |
4 |
- |
131 |
- |
|||||
Proceeds from issuance of non-recourse debt financing, net of issuance costs |
7,086 |
1,426 |
- |
81,926 |
- |
|||||
Repayment of non-recourse debt financing |
(244) |
- |
- |
(244) |
- |
|||||
Proceeds from issuance of project loans, net of issuance costs |
61,537 |
- |
14,169 |
61,537 |
82,394 |
|||||
Assumption of project loan by customer |
- |
- |
(34,850) |
(40,672) |
(34,850) |
|||||
Repayment of bank loans, project loans and other debt |
(533) |
(7,972) |
(388) |
(17,073) |
(290,486) |
|||||
Proceeds from residential lease financing |
- |
- |
13,027 |
- |
96,392 |
|||||
Repayment of residential lease financing |
- |
- |
- |
(15,686) |
- |
|||||
Proceeds from sale-leaseback financing |
27,022 |
6,893 |
32,382 |
50,600 |
73,139 |
|||||
Repayment of sale-leaseback financing |
(2,856) |
(581) |
(3,680) |
(4,216) |
(8,804) |
|||||
Contributions from noncontrolling interests and |
25,371 |
22,534 |
26,607 |
100,683 |
100,008 |
|||||
Distributions to noncontrolling interests and |
(2,285) |
(1,172) |
(335) |
(5,093) |
(335) |
|||||
Proceeds from exercise of stock options |
113 |
309 |
58 |
1,052 |
156 |
|||||
Excess tax benefit from stock-based compensation |
2,379 |
- |
- |
2,379 |
- |
|||||
Purchases of stock for tax withholding obligations on vested restricted stock |
(1,548) |
(3,196) |
(2,245) |
(57,548) |
(19,829) |
|||||
Net cash provided by financing activities |
115,962 |
18,194 |
44,745 |
498,566 |
294,068 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
(1,717) |
(1,973) |
611 |
(4,023) |
1,705 |
|||||
Net increase (decrease) in cash and cash equivalents |
33,446 |
(58,129) |
18,936 |
193,664 |
305,024 |
|||||
Cash and cash equivalents, beginning of period |
922,729 |
980,858 |
743,575 |
762,511 |
457,487 |
|||||
Cash and cash equivalents, end of period |
$ 956,175 |
$ 922,729 |
$ 762,511 |
$ 956,175 |
$ 762,511 |
|||||
Non-cash transactions: |
||||||||||
Assignment of financing receivables to a third party financial institution |
$ 1,604 |
$ 2,163 |
$ 25,613 |
$ 8,023 |
$ 93,013 |
|||||
Costs of solar power systems, leased and to be leased, sourced from existing inventory |
15,396 |
11,905 |
10,380 |
41,204 |
53,721 |
|||||
Costs of solar power systems, leased and to be leased, funded by liabilities |
3,786 |
2,389 |
5,884 |
3,786 |
5,884 |
|||||
Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets |
10,926 |
2,064 |
6,043 |
28,259 |
30,442 |
|||||
Property, plant and equipment acquisitions funded by liabilities |
11,461 |
12,146 |
5,288 |
11,461 |
5,288 |
|||||
SUNPOWER CORPORATION |
||||||||||
REVENUE BY SIGNIFICANT CATEGORY |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||
Revenue: |
||||||||||
Solar power products1 |
$ 257,998 |
$ 209,864 |
$ 269,725 |
$ 943,652 |
$ 917,960 |
|||||
Solar power systems2 |
865,845 |
402,244 |
316,970 |
1,896,696 |
1,399,972 |
|||||
Residential leases3 |
27,610 |
30,941 |
41,556 |
129,962 |
137,054 |
|||||
Other revenue4 |
12,785 |
19,685 |
9,883 |
56,955 |
52,217 |
|||||
$ 1,164,238 |
$ 662,734 |
$ 638,134 |
$ 3,027,265 |
$ 2,507,203 |
||||||
1Solar power products represents direct sales of panels, balance of system components, and inverters to dealers, systems integrators, and residential, commercial, and utility customers in all regions. |
||||||||||
2Solar power systems represents revenue recognized in connection with our construction and development contracts. |
||||||||||
3Residential leases represents revenue recognized on solar power systems leased to customers under our solar lease program. |
||||||||||
4Other revenue includes revenue related to our solar power services and solutions, such as post-installation systems monitoring and maintenance and commercial power purchase agreements. |
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures, as described below. Management adjusts for these items because it does not consider such items when evaluating the core operational activities of the company. The specific non-GAAP measures listed below are revenue, gross margin, net income, net income per diluted share, earnings before interest, taxes, depreciation and amortization (EBITDA), and free cash flow. Management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in each of these key elements of the company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, each of these non-GAAP financial measures provides investors with another method to assess the company's operating results in a manner that is focused on its ongoing, core operating performance, absent the effects of these items. Management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Many of the analysts covering the company also use these non-GAAP measures in their analyses. Given management's use of these non-GAAP measures, the company believes these measures are important to investors in understanding the company's operating results as seen through the eyes of management. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; the non-GAAP measures should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
Non-GAAP revenue includes adjustments relating to utility and power plant projects as described below. Non-GAAP gross margin includes adjustments relating to utility and power plant projects, loss on arbitration ruling, gain on contract termination, stock-based compensation, non-cash interest expense, and other items as described below. In addition to those same adjustments, non-GAAP net income and non-GAAP net income per diluted share are adjusted for adjustments relating to the November 2014 Restructuring Plan and the tax effect of these non-GAAP adjustments as described below. In addition to the same adjustments as non-GAAP gross margin, EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for (benefit from) income taxes, and depreciation. Free cash flow includes adjustments relating to investing cash flows and lease financings as described below.
Non-GAAP Adjustments
- 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 International Financial Reporting Standards (IFRS). On a GAAP basis, such projects are accounted for under U.S. GAAP 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 U.S. 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. During the fourth quarter of fiscal 2014, the company met the requirements to recognize revenue and the corresponding costs for its Solar Star Projects in California under the full accrual method of U.S. GAAP real estate accounting guidance, resulting in the recognition of incremental GAAP revenue and margin of $429 million and $146 million, respectively. Management believes that this adjustment for utility and power plant projects enables investors to evaluate the company's revenue generation performance relative to the direct costs of revenue of its core businesses.
- Loss on arbitration ruling. On January 28, 2015, an arbitral tribunal of the International Court of Arbitration of the International Chamber of Commerce declared a binding partial award in the matter of an arbitration between First Philippine Electric Corporation ("FPEC") and First Philippine Solar Corporation ("FPSC") against SunPower Philippines Manufacturing, Ltd. ("SPML"), our wholly-owned subsidiary. The tribunal found SPML in breach of its obligations under its supply agreement with FPSC, and in breach of its joint venture agreement with FPEC. As a result, in the fourth quarter of fiscal 2014, the company recorded its best estimate of probable loss related to this case. As this loss is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
- Gain on contract termination. During the third quarter of fiscal 2013, the company agreed to terminate a contract with one of its suppliers. As a result, the company recorded a gain associated with the non-cash forfeiture of a previously recorded advance from the supplier. As this gain is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
- 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 compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.
- Non-cash interest expense. The company separately accounted for the fair value liabilities of the embedded cash conversion option and the over-allotment option on its 4.5% senior cash convertible debentures issued in 2010 as an original issue discount and a corresponding derivative conversion liability. As a result, the company incurs interest expense that is substantially higher than interest payable on its 4.5% senior cash convertible debentures. The company excludes non-cash interest expense because the expense does not reflect its financial results in the period incurred. In addition, in connection with the Liquidity Support Agreement with Total executed on February 28, 2012, the company issued warrants to Total to acquire 9,531,677 shares of its common stock. The fair value of the warrants was recorded as debt issuance costs and amortized over the expected life of the agreement. As a result, the company incurred non-cash interest expense associated with the amortization of the warrants. Management believes that this adjustment for non-cash interest expense provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without non-cash interest expense.
- November 2014 Restructuring Plan. In November 2014, the company approved a reorganization plan aimed towards realigning resources consistently with SunPower's global strategy and improving its overall operating efficiency and cost structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have historically occurred infrequently. Although SunPower has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from SunPower's non-GAAP financial measures as they are not reflective of ongoing operating results or contribute to a meaningful evaluation of a company's past operating performance.
- 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.
The adjustments recorded in "Other" for the fourth quarter of fiscal 2014 are primarily driven by adjustments which would have previously been disclosed under "Amortization of intangible assets" and "Loss on change in equity interest in unconsolidated investee." - 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 proportion to earnings for that period. 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
Management presents this non-GAAP financial measure to enable investors with a basis to evaluate the company's performance, including compared with the performance of other companies.
- Free cash flow adjustments. When calculating free cash flow, the company includes the impact during the period of the following items:
- Net cash used in investing activities
- Proceeds from issuance of non-recourse debt financing, net of issuance costs
- Repayment of non-recourse debt financing
- Proceeds from residential lease financing
- Repayment of residential lease financing
- Proceeds from sale-leaseback financing
- Repayment of sale-leaseback financing
- Contributions from noncontrolling interests and redeemable noncontrolling interests
- Distributions to noncontrolling interests and redeemable noncontrolling interests
Management presents this non-GAAP financial measure to enable investors with a basis to evaluate the company's performance, including compared with the performance of other companies.
For more information about these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP Measures to Non-GAAP Measures" set forth at the end of this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.
SUNPOWER CORPORATION |
||||||||||||
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES |
||||||||||||
(In thousands, except percentages and per share data) |
||||||||||||
(Unaudited) |
||||||||||||
Adjustments to Revenue: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
GAAP revenue |
$ 1,164,238 |
$ 662,734 |
$ 638,134 |
$ 3,027,265 |
$ 2,507,203 |
|||||||
Utility and power plant projects |
(554,577) |
41,475 |
120,058 |
(408,616) |
95,788 |
|||||||
Other |
- |
- |
- |
- |
(672) |
|||||||
Non-GAAP revenue |
$ 609,661 |
$ 704,209 |
$ 758,192 |
$ 2,618,649 |
$ 2,602,319 |
|||||||
Adjustments to Gross margin: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
GAAP gross margin |
$ 259,479 |
$ 108,514 |
$ 130,668 |
$ 625,127 |
$ 491,072 |
|||||||
Utility and power plant projects |
(195,997) |
(721) |
19,381 |
(190,712) |
77,338 |
|||||||
Loss on arbitration ruling |
56,806 |
- |
- |
56,806 |
- |
|||||||
Gain on contract termination |
- |
- |
- |
- |
(51,987) |
|||||||
Stock-based compensation expense |
3,443 |
3,972 |
3,664 |
14,321 |
10,816 |
|||||||
Non-cash interest expense |
661 |
699 |
699 |
2,759 |
2,411 |
|||||||
Other |
- |
5,220 |
514 |
5,244 |
729 |
|||||||
Non-GAAP gross margin |
$ 124,392 |
$ 117,684 |
$ 154,926 |
$ 513,545 |
$ 530,379 |
|||||||
GAAP gross margin (%) |
22.3% |
16.4% |
20.5% |
20.6% |
19.6% |
|||||||
Non-GAAP gross margin (%) |
20.4% |
16.7% |
20.4% |
19.6% |
20.4% |
|||||||
Adjustments to Net income: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
GAAP net income attributable to stockholders |
$ 134,715 |
$ 32,033 |
$ 22,338 |
$ 245,894 |
$ 95,593 |
|||||||
Utility and power plant projects |
(195,997) |
(721) |
19,381 |
(190,712) |
77,338 |
|||||||
Loss on arbitration ruling |
56,806 |
- |
- |
56,806 |
- |
|||||||
Gain on contract termination |
- |
- |
- |
- |
(51,987) |
|||||||
Stock-based compensation expense |
13,652 |
13,725 |
14,575 |
55,592 |
45,678 |
|||||||
Non-cash interest expense |
5,593 |
5,499 |
12,634 |
21,585 |
49,016 |
|||||||
November 2014 Restructuring Plan |
13,115 |
- |
- |
13,115 |
- |
|||||||
Other |
2,106 |
6,106 |
1,370 |
7,113 |
4,850 |
|||||||
Tax effect |
9,424 |
(10,199) |
1,900 |
(4,282) |
523 |
|||||||
Non-GAAP net income attributable to stockholders |
$ 39,414 |
$ 46,443 |
$ 72,198 |
$ 205,111 |
$ 221,011 |
|||||||
Adjustments to Net income per diluted share: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
Net income per diluted share |
||||||||||||
Numerator: |
||||||||||||
GAAP net income available to common stockholders1 |
$ 136,124 |
$ 33,442 |
$ 22,889 |
$ 252,524 |
$ 96,888 |
|||||||
Non-GAAP net income available to common stockholders1 |
$ 39,964 |
$ 46,994 |
$ 75,426 |
$ 209,843 |
$ 221,011 |
|||||||
Denominator: |
||||||||||||
GAAP weighted-average shares |
164,075 |
167,117 |
151,337 |
162,751 |
138,980 |
|||||||
Effect of dilutive securities: |
||||||||||||
0.75% debentures due 2018 |
- |
- |
- |
- |
(7,070) |
|||||||
0.875% debentures due 2021 |
(8,203) |
(8,203) |
- |
(4,530) |
- |
|||||||
4.75% debentures due 2014 |
- |
- |
8,712 |
- |
- |
|||||||
Non-GAAP weighted-average shares1 |
155,872 |
158,914 |
160,049 |
158,221 |
131,910 |
|||||||
GAAP net income per diluted share |
$ 0.83 |
$ 0.20 |
$ 0.15 |
$ 1.55 |
$ 0.70 |
|||||||
Non-GAAP net income per diluted share |
$ 0.26 |
$ 0.30 |
$ 0.47 |
$ 1.33 |
$ 1.68 |
|||||||
1In accordance with the if-converted method, net income available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.75% debentures if the debentures are considered converted in the calculation of net income 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 per diluted share. |
||||||||||||
Revenue by Significant Category: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
GAAP Solar power products |
$ 257,998 |
$ 209,864 |
$ 269,725 |
$ 943,652 |
$ 917,960 |
|||||||
Other |
- |
- |
- |
- |
(672) |
|||||||
Non-GAAP Solar power products |
$ 257,998 |
$ 209,864 |
$ 269,725 |
$ 943,652 |
$ 917,288 |
|||||||
GAAP Solar power systems |
$ 865,845 |
$ 402,244 |
$ 316,970 |
$ 1,896,696 |
$ 1,399,972 |
|||||||
Utility and power plant projects |
(554,577) |
41,475 |
120,058 |
(408,616) |
95,788 |
|||||||
Non-GAAP Solar power systems |
$ 311,268 |
$ 443,719 |
$ 437,028 |
$ 1,488,080 |
$ 1,495,760 |
|||||||
EBITDA: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
GAAP net income attributable to stockholders |
$ 134,715 |
$ 32,033 |
$ 22,338 |
$ 245,894 |
$ 95,593 |
|||||||
Utility and power plant projects |
(195,997) |
(721) |
19,381 |
(190,712) |
77,338 |
|||||||
Loss on arbitration ruling |
56,806 |
- |
- |
56,806 |
- |
|||||||
Gain on contract termination |
- |
- |
- |
- |
(51,987) |
|||||||
Stock-based compensation expense |
13,652 |
13,725 |
14,575 |
55,592 |
45,678 |
|||||||
Non-cash interest expense |
5,593 |
5,499 |
12,634 |
21,585 |
49,016 |
|||||||
November 2014 Restructuring Plan |
13,115 |
- |
- |
13,115 |
- |
|||||||
Other |
2,106 |
6,106 |
1,370 |
7,113 |
4,850 |
|||||||
Cash interest expense, net of interest income |
11,006 |
11,476 |
11,536 |
48,364 |
56,283 |
|||||||
Provision for (benefit from) income taxes |
11,628 |
(8,320) |
8,985 |
8,760 |
11,905 |
|||||||
Depreciation |
32,282 |
25,727 |
24,553 |
107,406 |
97,446 |
|||||||
EBITDA |
$ 84,906 |
$ 85,525 |
$ 115,372 |
$ 373,923 |
$ 386,122 |
|||||||
Free Cash Flow: |
||||||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
Dec. 28, |
Sep. 28, |
Dec. 29, |
Dec. 28, |
Dec. 29, |
||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
Net cash provided by (used in) operating activities |
$ 122,349 |
$ (32,418) |
$ 32,876 |
$ 8,360 |
$ 162,429 |
|||||||
Net cash used in investing activities |
(203,148) |
(41,932) |
(59,296) |
(309,239) |
(153,178) |
|||||||
Proceeds from issuance of non-recourse debt financing, net of issuance costs |
7,086 |
1,426 |
- |
81,926 |
- |
|||||||
Repayment of non-recourse debt financing |
(244) |
- |
- |
(244) |
- |
|||||||
Proceeds from residential lease financing |
- |
- |
13,027 |
- |
96,392 |
|||||||
Repayment of residential lease financing |
- |
- |
- |
(15,686) |
- |
|||||||
Proceeds from sale-leaseback financing |
27,022 |
6,893 |
32,382 |
50,600 |
73,139 |
|||||||
Repayment of sale-leaseback financing |
(2,856) |
(581) |
(3,680) |
(4,216) |
(8,804) |
|||||||
Contributions from noncontrolling interests and |
25,371 |
22,534 |
26,607 |
100,683 |
100,008 |
|||||||
Distributions to noncontrolling interests and |
(2,285) |
(1,172) |
(335) |
(5,093) |
(335) |
|||||||
Free cash flow |
$ (26,705) |
$ (45,250) |
$ 41,581 |
$ (92,909) |
$ 269,651 |
Q1 2015 GUIDANCE (in thousands except percentages and per share data) |
Q1 2015 |
|||||||||||||
Revenue (GAAP) |
$420,000-$470,000 |
|||||||||||||
Revenue (non-GAAP) (1) |
$410,000-$460,000 |
|||||||||||||
Gross margin (GAAP) |
18%-20% |
|||||||||||||
Gross margin (non-GAAP) (2) |
18%-20% |
|||||||||||||
Net loss per diluted share (GAAP) |
$(0.20)-$(0.10) |
|||||||||||||
Net income per diluted share (non-GAAP) (3) |
$0.05-$0.15 |
(1) |
Estimated non-GAAP amounts above include a net decrease of $10 million for Q1 2015 of revenue primarily related to utility and power plant projects. |
|||||||||||||
(2) |
Estimated non-GAAP amounts above for Q1 2015 include net adjustments that increase (decrease) gross margin by approximately $(5) million related to the non-GAAP revenue adjustments that are discussed above, $3 million related to stock-based compensation expense, and $1 million related to non-cash interest expense. |
|||||||||||||
(3) |
Estimated non-GAAP amounts above for Q1 2015 include net adjustments that increase (decrease) net income (loss) by approximately $(5) million related to the non-GAAP revenue adjustments that are discussed above, $15 million related to stock-based compensation expense, $6 million related to non-cash interest expense, $5 million related to the November 2014 restructuring plan, $3 million related to other items, and $6 million in tax effect. |
The following supplemental data represent the adjustments, individual charges and credits that are included or excluded from SunPower's non-GAAP revenue, gross margin, net income and net income per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.
SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
(In thousands, except percentages) |
||||||||||||||||||||||||||||||
THREE MONTHS ENDED |
||||||||||||||||||||||||||||||
December 28, 2014 |
||||||||||||||||||||||||||||||
Revenue |
Gross margin |
Operating expenses |
Other income (expense), net |
Benefit from (provision for) income taxes |
Net income (loss) attributable to stockholders |
|||||||||||||||||||||||||
AMERICAS |
EMEA |
APAC |
AMERICAS |
EMEA |
APAC |
Research and |
Selling, general |
Restructuring charges |
||||||||||||||||||||||
GAAP |
$ 1,001,571 |
$ 52,933 |
$ 109,734 |
$ 264,641 |
26.4% |
$ 2,321 |
4.4% |
$ (7,483) |
-6.8% |
$ 134,715 |
||||||||||||||||||||
Utility and power plant projects |
(554,577) |
- |
- |
(195,997) |
- |
- |
- |
- |
- |
- |
- |
(195,997) |
||||||||||||||||||
Loss on arbitration ruling |
- |
- |
- |
32,624 |
6,112 |
18,070 |
- |
- |
- |
- |
- |
56,806 |
||||||||||||||||||
Stock-based compensation expense |
- |
- |
- |
1,897 |
388 |
1,158 |
1,983 |
8,226 |
- |
- |
- |
13,652 |
||||||||||||||||||
Non-cash interest expense |
- |
- |
- |
380 |
71 |
210 |
6 |
21 |
- |
4,905 |
- |
5,593 |
||||||||||||||||||
November 2014 Restructuring Plan |
- |
- |
- |
- |
- |
- |
- |
- |
13,115 |
- |
- |
13,115 |
||||||||||||||||||
Other |
- |
- |
- |
- |
- |
- |
214 |
236 |
98 |
1,558 |
- |
2,106 |
||||||||||||||||||
Tax effect |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
9,424 |
9,424 |
||||||||||||||||||
Non-GAAP |
$ 446,994 |
$ 52,933 |
$ 109,734 |
$ 103,545 |
23.2% |
$ 8,892 |
16.8% |
$ 11,955 |
10.9% |
$ 39,414 |
||||||||||||||||||||
September 28, 2014 |
||||||||||||||||||||||||||||||
Revenue |
Gross margin |
Operating expenses |
Other income (expense), net |
Benefit from (provision for) income taxes |
Net income attributable to stockholders |
|||||||||||||||||||||||||
AMERICAS |
EMEA |
APAC |
AMERICAS |
EMEA |
APAC |
Research and |
Selling, general |
Restructuring charges |
||||||||||||||||||||||
GAAP |
$ 517,799 |
$ 44,633 |
$ 100,302 |
$ 103,184 |
19.9% |
$ (1,396) |
-3.1% |
$ 6,726 |
6.7% |
$ 32,033 |
||||||||||||||||||||
Utility and power plant projects |
41,475 |
- |
- |
(721) |
- |
- |
- |
- |
- |
- |
- |
(721) |
||||||||||||||||||
Stock-based compensation expense |
- |
- |
- |
2,310 |
408 |
1,254 |
2,022 |
7,731 |
- |
- |
- |
13,725 |
||||||||||||||||||
Non-cash interest expense |
- |
- |
- |
452 |
60 |
187 |
6 |
22 |
- |
4,772 |
- |
5,499 |
||||||||||||||||||
Other |
- |
- |
- |
(24) |
5,244 |
- |
- |
720 |
188 |
(22) |
- |
6,106 |
||||||||||||||||||
Tax effect |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(10,199) |
(10,199) |
||||||||||||||||||
Non-GAAP |
$ 559,274 |
$ 44,633 |
$ 100,302 |
$ 105,201 |
18.8% |
$ 4,316 |
9.7% |
$ 8,167 |
8.1% |
$ 46,443 |
||||||||||||||||||||
December 29, 2013 |
||||||||||||||||||||||||||||||
Revenue |
Gross margin |
Operating expenses |
Other income (expense), net |
Benefit from (provision for) income taxes |
Net income (loss) attributable to stockholders |
|||||||||||||||||||||||||
AMERICAS |
EMEA |
APAC |
AMERICAS |
EMEA |
APAC |
Research and |
Selling, general |
Restructuring charges |
||||||||||||||||||||||
GAAP |
$ 382,650 |
$ 154,285 |
$ 101,199 |
$ 90,993 |
23.8% |
$ 24,364 |
15.8% |
$ 15,311 |
15.1% |
$ 22,338 |
||||||||||||||||||||
Utility and power plant projects |
120,058 |
- |
- |
19,381 |
- |
- |
- |
- |
- |
- |
- |
19,381 |
||||||||||||||||||
Stock-based compensation expense |
- |
- |
- |
1,941 |
798 |
925 |
1,677 |
9,234 |
- |
- |
- |
14,575 |
||||||||||||||||||
Non-cash interest expense |
- |
- |
- |
401 |
127 |
171 |
19 |
23 |
- |
11,893 |
- |
12,634 |
||||||||||||||||||
Other |
- |
- |
- |
514 |
- |
- |
- |
(48) |
897 |
7 |
- |
1,370 |
||||||||||||||||||
Tax effect |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,900 |
1,900 |
||||||||||||||||||
Non-GAAP |
$ 502,708 |
$ 154,285 |
$ 101,199 |
$ 113,230 |
22.5% |
$ 25,289 |
16.4% |
$ 16,407 |
16.2% |
$ 72,198 |
||||||||||||||||||||
TWELVE MONTHS ENDED |
||||||||||||||||||||||||||||||
December 28, 2014 |
||||||||||||||||||||||||||||||
Revenue |
Gross margin |
Operating expenses |
Other income (expense), net |
Benefit from (provision for) income taxes |
Net income attributable to stockholders |
|||||||||||||||||||||||||
AMERICAS |
EMEA |
APAC |
AMERICAS |
EMEA |
APAC |
Research and |
Selling, general |
Restructuring charges |
||||||||||||||||||||||
GAAP |
$ 2,323,441 |
$ 288,533 |
$ 415,291 |
$ 563,802 |
24.3% |
$ 37,798 |
13.1% |
$ 23,527 |
5.7% |
$ 245,894 |
||||||||||||||||||||
Utility and power plant projects |
(408,616) |
- |
- |
(190,712) |
- |
- |
- |
- |
- |
- |
- |
(190,712) |
||||||||||||||||||
Loss on arbitration ruling |
- |
- |
- |
32,624 |
6,112 |
18,070 |
- |
- |
- |
- |
- |
56,806 |
||||||||||||||||||
Stock-based compensation expense |
- |
- |
- |
8,115 |
1,962 |
4,244 |
7,714 |
33,557 |
- |
- |
- |
55,592 |
||||||||||||||||||
Non-cash interest expense |
- |
- |
- |
1,624 |
352 |
783 |
25 |
89 |
- |
18,712 |
- |
21,585 |
||||||||||||||||||
November 2014 Restructuring Plan |
- |
- |
- |
- |
- |
- |
- |
- |
13,115 |
- |
- |
13,115 |
||||||||||||||||||
Other |
- |
- |
- |
- |
5,244 |
- |
214 |
964 |
(892) |
1,583 |
- |
7,113 |
||||||||||||||||||
Tax effect |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(4,282) |
(4,282) |
||||||||||||||||||
Non-GAAP |
$ 1,914,825 |
$ 288,533 |
$ 415,291 |
$ 415,453 |
21.7% |
$ 51,468 |
17.8% |
$ 46,624 |
11.2% |
$ 205,111 |
||||||||||||||||||||
December 29, 2013 |
||||||||||||||||||||||||||||||
Revenue |
Gross margin |
Operating expenses |
Other income (expense), net |
Benefit from (provision for) income taxes |
Net income attributable to stockholders |
|||||||||||||||||||||||||
AMERICAS |
EMEA |
APAC |
AMERICAS |
EMEA |
APAC |
Research and |
Selling, general |
Restructuring charges |
||||||||||||||||||||||
GAAP |
$ 1,676,472 |
$ 450,659 |
$ 380,072 |
$ 376,771 |
22.5% |
$ 31,243 |
6.9% |
$ 83,058 |
21.9% |
$ 95,593 |
||||||||||||||||||||
Utility and power plant projects |
95,788 |
- |
- |
77,338 |
- |
- |
- |
- |
- |
- |
- |
77,338 |
||||||||||||||||||
Gain on contract termination |
- |
- |
- |
(25,604) |
(9,395) |
(16,988) |
- |
- |
- |
- |
- |
(51,987) |
||||||||||||||||||
Stock-based compensation expense |
- |
- |
- |
5,150 |
2,660 |
3,006 |
5,414 |
29,448 |
- |
- |
- |
45,678 |
||||||||||||||||||
Non-cash interest expense |
- |
- |
- |
1,203 |
495 |
713 |
74 |
92 |
- |
46,439 |
- |
49,016 |
||||||||||||||||||
Other |
- |
- |
(672) |
957 |
186 |
(414) |
- |
1,482 |
2,602 |
37 |
- |
4,850 |
||||||||||||||||||
Tax effect |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
523 |
523 |
||||||||||||||||||
Non-GAAP |
$ 1,772,260 |
$ 450,659 |
$ 379,400 |
$ 435,815 |
24.6% |
$ 25,189 |
5.6% |
$ 69,375 |
18.3% |
$ 221,011 |
||||||||||||||||||||
SOURCE SunPower Corp.
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