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
July 28, 2022
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 July 28, 2022, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the second quarter ended June 30, 2022. 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. datedJulyex991pressreleaseq2-2022.htm28,2022 |
| 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: July 28, 2022 | 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 Second Quarter 2022 Financial Results
•Net sales of $621 million
•Net income per diluted share of $0.52
•Cash, restricted cash, and marketable securities of $1.9 billion
•YTD net bookings of 27.1 GWDC
•10.4 GWDC of net bookings since prior earnings call have a base Average Selling Price (ASP), prior to the application of pricing adjustors, of $0.301 per watt
•Record expected module shipment backlog of over 44 GWDC
•Earnings guidance lowered due to legacy systems business asset impairment in Chile and Japanese Yen devaluation
TEMPE, Ariz., July 28, 2022 – First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the second quarter ended June 30, 2022.
Net sales for the second quarter were $621 million, an increase of $254 million from the prior quarter, primarily due to increased module sales.
Operating income for the second quarter was $145 million, compared to an operating loss of $58 million in the prior quarter. Second quarter operating income increased primarily due to increased module sales volume and a gain on the sale of the Company’s Japan project development platform, partially offset by an impairment associated with a legacy systems business asset in Chile.
The Company reported second quarter income per diluted share of $0.52, compared to a loss per diluted share of $0.41 in the prior quarter.
Cash, restricted cash, and marketable securities at the end of the second quarter increased to $1.9 billion from $1.6 billion at the end of the prior quarter. The increase was primarily due to proceeds from the sale of the Company’s Japan project development platform.
“We are pleased with our second quarter results,” said Mark Widmar, CEO of First Solar. “Our competitive differentiators, including our technology, agile contracting, certainty, and the promise of responsibly-produced solar, have sustained our bookings momentum and continue to drive demand.We now have a record backlog of over 44 GWs, extending the horizon for future expected deliveries to 2026. The 10.4 GWs of new bookings since our prior earnings call in April brings our total year-to-date bookings to 27.1 GWs.”
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The complete 2022 guidance has been updated as follows:
| Prior | Current | |
|---|---|---|
| Net Sales | $2.4B to $2.6B | $2.55B to $2.8B |
| Gross Profit (1)(2) | $155M to $215M | $115M to $165M |
| Operating Expenses (3) | $365M to $380M | $350M to $365M |
| Operating Income (2)(4)(5) | $55M to $150M | $5M to $70M |
| Earnings (Loss) per Diluted Share | $0.00 to $0.60 | $(0.25) to $0.25 |
| Net Cash Balance (6) | $1.1B to $1.35B | $1.3B to $1.5B |
| Capital Expenditures | $850M to $1.1B | Unchanged |
| Shipments | 8.9GW to 9.4GW | Unchanged |
——————————
(1)Includes $10 million to $15 million of underutilization losses
(2)Includes $40 million to $50 million of losses associated with a legacy systems business asset in Chile
(3)Includes $80 million to $85 million of production start-up expense
(4)Includes $90 million to $100 million of production start-up expense and underutilization losses
(5)Includes $245 million pre-tax gain related to the sale of the Japan project development and O&M platforms
(6)Defined as cash, marketable securities, and restricted cash less expected debt at the end of 2022
The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s second quarter 2022 financial results, 2022 guidance, and financial outlook.
Conference Call Details
First Solar has scheduled a conference call for today, July 28, 2022 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 Tuesday, August 27, 2022 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. A replay of the webcast will also be available on the Investors section of the Company’s website approximately five hours after the conclusion of the call and remain available for 90 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 research and development 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 concerning: demand for our technology; our expected module shipment backlog; the progression of our Japan operations and maintenance platform sale; the anticipated sale of our Luz del Norte project in Chile; our financial guidance for 2022, including future financial results, operating results, net sales, gross margin, operating expenses, operating income, earnings per share, loss per share, net cash balance, capital expenditures, shipments, bookings,
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products and our business and financial objectives for 2022; bookings momentum; and the strength our backlog of future expected deliveries. 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 proposed legislation intended to encourage renewable energy investments through tax credits; 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; the creditworthiness of our offtake counterparties and the ability of our offtake counterparties to fulfill their contractual obligations to us; 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; our ability to successfully develop and complete our systems business projects; our ability to convert existing production facilities to support new product lines, such as Series 6 module manufacturing; 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 resulting from pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; supply chain disruption, including the availability of shipping containers, port congestion, canceled shipments by logistic providers, and the cost of fuel, all of which may be exacerbated by the COVID-19 pandemic and the Russia-Ukraine conflict; 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 convert existing or construct production facilities to support new product lines; our ability to attract and retain key executive officers and associates; the severity and duration of the COVID-19 pandemic, including its 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 Conditions 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
investor@firstsolar.com
First Solar Media
media@firstsolar.com
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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| June 30,<br>2022 | December 31,<br>2021 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash | $ | 1,701,217 | $ | 1,450,654 |
| Marketable securities | 143,944 | 375,389 | ||
| Accounts receivable trade, net | 454,431 | 429,436 | ||
| Accounts receivable unbilled, net | 35,438 | 25,273 | ||
| Inventories | 810,461 | 666,299 | ||
| Other current assets | 237,926 | 244,192 | ||
| Total current assets | 3,383,417 | 3,191,243 | ||
| Property, plant and equipment, net | 2,988,979 | 2,649,587 | ||
| PV solar power systems, net | 156,215 | 217,293 | ||
| Project assets | 29,589 | 315,488 | ||
| Deferred tax assets, net | 61,732 | 59,162 | ||
| Restricted marketable securities | 200,266 | 244,726 | ||
| Goodwill | 14,462 | 14,462 | ||
| Intangible assets, net | 38,728 | 45,509 | ||
| Inventories | 239,025 | 237,512 | ||
| Other assets | 306,956 | 438,764 | ||
| Total assets | $ | 7,419,369 | $ | 7,413,746 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 160,963 | $ | 193,374 |
| Income taxes payable | 29,441 | 4,543 | ||
| Accrued expenses | 344,205 | 288,450 | ||
| Current portion of long-term debt | 5,150 | 3,896 | ||
| Deferred revenue | 227,466 | 201,868 | ||
| Other current liabilities | 36,329 | 34,747 | ||
| Total current liabilities | 803,554 | 726,878 | ||
| Accrued solar module collection and recycling liability | 134,146 | 139,145 | ||
| Long-term debt | 170,017 | 236,005 | ||
| Other liabilities | 415,825 | 352,167 | ||
| Total liabilities | 1,523,542 | 1,454,195 | ||
| Commitments and contingencies | ||||
| Stockholders’ equity: | ||||
| Common stock, $0.001 par value per share; 500,000,000 shares authorized; 106,594,255 and 106,332,315 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 107 | 106 | ||
| Additional paid-in capital | 2,868,945 | 2,871,352 | ||
| Accumulated earnings | 3,197,005 | 3,184,455 | ||
| Accumulated other comprehensive loss | (170,230) | (96,362) | ||
| Total stockholders’ equity | 5,895,827 | 5,959,551 | ||
| Total liabilities and stockholders’ equity | $ | 7,419,369 | $ | 7,413,746 |
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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2022 | March 31,<br>2022 | June 30,<br>2021 | June 30,<br>2022 | June 30,<br>2021 | ||||||
| Net sales | $ | 620,955 | $ | 367,040 | $ | 629,180 | $ | 987,995 | $ | 1,432,554 |
| Cost of sales | 644,155 | 355,577 | 455,062 | 999,732 | 1,073,669 | |||||
| Gross (loss) profit | (23,200) | 11,463 | 174,118 | (11,737) | 358,885 | |||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 38,894 | 36,728 | 36,346 | 75,622 | 88,433 | |||||
| Research and development | 25,229 | 27,108 | 23,935 | 52,337 | 43,808 | |||||
| Production start-up | 13,231 | 7,338 | 1,715 | 20,569 | 13,069 | |||||
| Total operating expenses | 77,354 | 71,174 | 61,996 | 148,528 | 145,310 | |||||
| Gain on sales of businesses, net | 245,381 | 1,907 | (1,745) | 247,288 | 149,150 | |||||
| Operating income (loss) | 144,827 | (57,804) | 110,377 | 87,023 | 362,725 | |||||
| Foreign currency loss, net | (2,984) | (4,198) | (1,000) | (7,182) | (3,595) | |||||
| Interest income | 2,880 | 2,325 | 1,288 | 5,205 | 2,244 | |||||
| Interest expense, net | (3,236) | (2,865) | (4,623) | (6,101) | (7,619) | |||||
| Other (expense) income, net | (1,883) | (212) | (3,247) | (2,095) | 5,201 | |||||
| Income (loss) before taxes | 139,604 | (62,754) | 102,795 | 76,850 | 358,956 | |||||
| Income tax (expense) benefit | (83,799) | 19,499 | (20,346) | (64,300) | (66,836) | |||||
| Net income (loss) | $ | 55,805 | $ | (43,255) | $ | 82,449 | $ | 12,550 | $ | 292,120 |
| Net income (loss) per share: | ||||||||||
| Basic | $ | 0.52 | $ | (0.41) | $ | 0.78 | $ | 0.12 | $ | 2.75 |
| Diluted | $ | 0.52 | $ | (0.41) | $ | 0.77 | $ | 0.12 | $ | 2.73 |
| Weighted-average number of shares used in per share calculations: | ||||||||||
| Basic | 106,586 | 106,412 | 106,313 | 106,500 | 106,201 | |||||
| Diluted | 107,056 | 106,412 | 106,836 | 106,965 | 106,866 |
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