8-K
FIRST SOLAR, INC. (FSLR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
April 27, 2023
Date of Report (Date of earliest event reported)
FIRST SOLAR, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-33156 | 20-4623678 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
350 West Washington Street, Suite 600
Tempe, Arizona 85288
(Address of principal executive offices, including zip code)
(602) 414-9300
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading symbol(s)Name of each exchange on which registeredCommon stock, $0.001 par valueFSLRThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On April 27, 2023, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the first quarter ended March 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release of First Solar, Inc. dated April 27, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST SOLAR, INC. | ||
|---|---|---|
| Date: April 27, 2023 | By: | /s/ JASON DYMBORT |
| Name: | Jason Dymbort | |
| Title: | General Counsel & Secretary |
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Document
EXHIBIT 99.1
| News Release |
|---|
First Solar, Inc. Announces First Quarter 2023 Financial Results
•Net sales of $548 million
•Net income per diluted share of $0.40
•Net cash balance of $2.0 billion
•YTD net bookings of 12.1 GWDC; 4.8 GWDC since fourth quarter earnings call at an average selling price of $0.318 per watt
•Expected volume sold backlog of 71.6 GWDC
TEMPE, Ariz., April 27, 2023 – First Solar, Inc. (Nasdaq: FSLR) (the “Company”) today announced financial results for the first quarter ended March 31, 2023.
Net sales for the first quarter were $548 million, a decrease of $454 million from the prior quarter. The decrease was primarily driven by a decrease in the volume of modules sold to third parties.
The Company reported first quarter net income per diluted share of $0.40, compared to a net loss per diluted share of $0.07 in the fourth quarter of 2022.
Cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less debt at the end of the first quarter decreased to $2.0 billion from $2.4 billion at the end of the prior quarter. The decrease was primarily a result of capital expenditures related to expansions in Alabama, India, and Ohio, partially offset by a drawdown on our India credit facility and advance payments received for future module sales.
“We entered 2023 in a significantly stronger commercial, operational, and financial position than the previous year, setting the stage for growth and improved profitability in 2023 and beyond,” said Mark Widmar, CEO of First Solar. “The first quarter of the year reflects this direction as we commissioned our latest factory in the United States and started production of our next generation Series 7 modules, progressed our technology roadmap with a new cell efficiency record, and continued our strong bookings and ASP momentum.”
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2023 guidance remains unchanged. The complete 2023 guidance is as follows:
| Prior | Current | |
|---|---|---|
| Net Sales | $3.4B to $3.6B | Unchanged |
| Gross Margin (1) | $1.2B to $1.3B | Unchanged |
| Operating Expenses (2) | $415M to $440M | Unchanged |
| Operating Income (3) | $745M to $870M | Unchanged |
| Earnings per Diluted Share | $7.00 to $8.00 | Unchanged |
| Net Cash Balance (4) | $1.2B to $1.5B | Unchanged |
| Capital Expenditures | $1.9B to $2.1B | Unchanged |
| Volume Sold | 11.8GW to 12.3GW | Unchanged |
——————————
(1)Includes $110 million to $130 million of ramp and underutilization costs and $660 million to $710 million of Section 45X tax benefits
(2)Includes $85 million to $90 million of production start-up expense
(3)Includes $195 million to $220 million of production start-up expense and ramp and underutilization costs, and $660 million to $710 million of Section 45X tax benefits
(4)Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2023
The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to certain factors related to the Inflation Reduction Act of 2022 (the “IRA”). Among other things, such factors include (i) the total advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code and (ii) the timing and ability to monetize such credit. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s first quarter 2023 financial results, 2023 guidance, and financial outlook.
Conference Call Details
First Solar has scheduled a conference call for today, April 27, 2023 at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com. An audio replay of the conference call will be available through Saturday, May 27, 2023 and can be accessed by dialing +1 (800) 770-2030 if you are calling from within the United States or +1 (647) 362-9199 if you are calling from outside the United States and entering the replay passcode 99681. A replay of the webcast will also be available on the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for 30 days.
About First Solar, Inc.
First Solar is a leading American solar technology company and global provider of responsibly-produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the Company’s advanced thin film photovoltaic (“PV”) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.
For First Solar Investors
This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements
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concerning: demand for our technology; increased research and development investment; new domestic and international capacity coming online; a new Series 7 product; our financial guidance for 2023, including future financial results, net sales, gross margin, operating expenses, operating income, earnings per share, net cash balance, capital expenditures, volume sold, shipments, bookings, products and our business and financial objectives for 2023; the availability of benefits under certain production linked incentive programs, and the impact of the IRA including the total advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “contingent” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the reduction, elimination, expiration or introduction of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; the passage of legislation intended to encourage renewable energy investments through tax credits, such as the IRA; the impact of the IRA on our expected results of operations in future periods, which may be affected by technical guidance, regulations, subsequent amendments or interpretations of the law; interest rate fluctuations and both our and our customers’ ability to secure financing; changes in the exchange rates between the functional currencies of our subsidiaries and other currencies in which assets and liabilities are denominated; our ability to execute on our long-term strategic plans; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; our ability to incorporate technology improvements into our manufacturing process, including the production of bifacial solar modules and next generation Series 7 modules; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects arising from and results of pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; supply chain disruptions, including demurrage and detention charges; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cyber-attacks or other breaches of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to construct production facilities to support product lines, including Series 6 and Series 7 module manufacturing; our ability to attract and retain key executive officers and associates; the severity and duration of public health threats (including pandemics such as COVID-19 and similarly infectious diseases), including the potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission.
Contacts
First Solar Investors First Solar Media
investor@firstsolar.com media@firstsolar.com
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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| March 31,<br>2023 | December 31,<br>2022 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 906,634 | $ | 1,481,269 |
| Marketable securities | 1,364,607 | 1,096,712 | ||
| Accounts receivable trade, net | 298,620 | 324,337 | ||
| Accounts receivable unbilled | 25,894 | 30,654 | ||
| Inventories | 751,407 | 621,376 | ||
| Other current assets | 272,702 | 237,073 | ||
| Total current assets | 3,619,864 | 3,791,421 | ||
| Property, plant and equipment, net | 3,858,604 | 3,536,902 | ||
| Deferred tax assets, net | 136,411 | 78,680 | ||
| Restricted marketable securities | 196,591 | 182,070 | ||
| Government grants receivable | 70,114 | — | ||
| Goodwill | 14,462 | 14,462 | ||
| Intangible assets, net | 28,477 | 31,106 | ||
| Inventories | 253,353 | 260,395 | ||
| Other assets | 386,720 | 356,192 | ||
| Total assets | $ | 8,564,596 | $ | 8,251,228 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 285,760 | $ | 341,409 |
| Income taxes payable | 77,176 | 29,397 | ||
| Accrued expenses | 391,912 | 382,782 | ||
| Deferred revenue | 398,694 | 263,215 | ||
| Other current liabilities | 20,631 | 21,245 | ||
| Total current liabilities | 1,174,173 | 1,038,048 | ||
| Accrued solar module collection and recycling liability | 130,258 | 128,114 | ||
| Long-term debt | 320,378 | 184,349 | ||
| Deferred revenue | 949,687 | 944,725 | ||
| Other liabilities | 121,372 | 119,937 | ||
| Total liabilities | 2,695,868 | 2,415,173 | ||
| Commitments and contingencies | ||||
| Stockholders’ equity: | ||||
| Common stock, $0.001 par value per share; 500,000,000 shares authorized; 106,825,067 and 106,609,094 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 107 | 107 | ||
| Additional paid-in capital | 2,865,753 | 2,887,476 | ||
| Accumulated earnings | 3,182,850 | 3,140,289 | ||
| Accumulated other comprehensive loss | (179,982) | (191,817) | ||
| Total stockholders’ equity | 5,868,728 | 5,836,055 | ||
| Total liabilities and stockholders’ equity | $ | 8,564,596 | $ | 8,251,228 |
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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | ||||
| Net sales | $ | 548,286 | $ | 1,002,391 | $ | 367,040 |
| Cost of sales | 436,235 | 941,778 | 355,577 | |||
| Gross profit | 112,051 | 60,613 | 11,463 | |||
| Operating expenses: | ||||||
| Selling, general and administrative | 44,028 | 42,734 | 36,728 | |||
| Research and development | 30,510 | 31,284 | 27,108 | |||
| Production start-up | 19,494 | 32,740 | 7,338 | |||
| Total operating expenses | 94,032 | 106,758 | 71,174 | |||
| Gain on sales of businesses, net | (17) | 239 | 1,907 | |||
| Operating income (loss) | 18,002 | (45,906) | (57,804) | |||
| Foreign currency loss, net | (5,947) | (4,373) | (4,198) | |||
| Interest income | 25,822 | 18,330 | 2,325 | |||
| Interest expense, net | (748) | (3,133) | (2,865) | |||
| Other expense, net | (1,456) | 28,510 | (212) | |||
| Income (loss) before taxes | 35,673 | (6,572) | (62,754) | |||
| Income tax benefit (expense) | 6,888 | (976) | 19,499 | |||
| Net income (loss) | $ | 42,561 | $ | (7,548) | $ | (43,255) |
| Net income (loss) per share: | ||||||
| Basic | $ | 0.40 | $ | (0.07) | $ | (0.41) |
| Diluted | $ | 0.40 | $ | (0.07) | $ | (0.41) |
| Weighted-average number of shares used in per share calculations: | ||||||
| Basic | 106,675 | 106,606 | 106,412 | |||
| Diluted | 107,154 | 106,606 | 106,412 |
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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three Months Ended <br>March 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 42,561 | $ | (43,255) |
| Adjustments to reconcile net income (loss) to cash used in operating activities: | ||||
| Depreciation, amortization and accretion | 68,855 | 65,207 | ||
| Share-based compensation | 6,600 | 3,503 | ||
| Deferred income taxes | (55,282) | 1,083 | ||
| Gain on sales of businesses, net | 17 | (1,907) | ||
| Other, net | (698) | 2,165 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable, trade and unbilled | 33,933 | 144,286 | ||
| Inventories | (122,996) | (175,990) | ||
| Project assets and PV solar power systems | 6,099 | (98,695) | ||
| Government grants receivable | (70,114) | — | ||
| Other assets | (66,493) | (30,838) | ||
| Income tax receivable and payable | 43,646 | (23,502) | ||
| Accounts payable and accrued expenses | (61,552) | (38,043) | ||
| Deferred revenue | 139,713 | 77,042 | ||
| Other liabilities | 1,113 | (19,895) | ||
| Net cash used in operating activities | (34,598) | (138,839) | ||
| Cash flows from investing activities: | ||||
| Purchases of property, plant and equipment | (370,961) | (154,761) | ||
| Purchases of marketable securities and restricted marketable securities | (1,470,600) | (750,220) | ||
| Proceeds from maturities of marketable securities | 1,196,334 | 900,165 | ||
| Proceeds from sales of businesses | — | 1,860 | ||
| Other investing activities | — | 12 | ||
| Net cash used in investing activities | (645,227) | (2,944) | ||
| Cash flows from financing activities: | ||||
| Repayment of long-term debt | — | (737) | ||
| Proceeds from borrowings under long-term debt, net of issuance costs | 136,000 | 18,006 | ||
| Payments of tax withholdings for restricted shares | (28,314) | (11,505) | ||
| Net cash provided by financing activities | 107,686 | 5,764 | ||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 1,495 | 15,162 | ||
| Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents | (570,644) | (120,857) | ||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period | 1,493,462 | 1,455,837 | ||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period | $ | 922,818 | $ | 1,334,980 |
| Supplemental disclosure of noncash investing and financing activities: | ||||
| Property, plant and equipment acquisitions funded by liabilities | $ | 330,830 | $ | 105,643 |
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