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 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 85281
(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 28, 2022, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the first quarter ended March 31, 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. dated April 28, 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: April 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 First Quarter 2022 Financial Results
•Net sales of $367 million
•Net loss per diluted share of $0.41
•Cash, restricted cash, and marketable securities of $1.6 billion
•YTD net bookings of 16.7 GWDC; 11.9 GWDC since prior earnings call
•Record expected module shipment backlog of over 35 GWDC
•Reiterated full year 2022 guidance
TEMPE, Ariz., April 28, 2022 – First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first quarter ended March 31, 2022.
Net sales for the first quarter were $367 million, a decrease of $540 million from the prior quarter, primarily due to a decrease in module sold volume, a decrease in the module average selling price, and lower project revenue in Japan.
The Company reported a first quarter loss per share of $0.41, compared to earnings per diluted share of $1.23 in the fourth quarter of 2021.
Cash, restricted cash, and marketable securities at the end of the first quarter decreased to $1.6 billion from $1.8 billion at the end of the prior quarter. The decrease was primarily a result of capital expenditures related to expansion in India and Ohio and operating expenses.
“We are encouraged by our strong bookings progress, as we booked 11.9 GWDC in less than 60 days since the prior earnings call, bringing our year-to-date bookings total to 16.7 GWDC, further setting ourselves up for 2023 and beyond,” said Mark Widmar, CEO of First Solar. “Our agile approach to contracting continues to attract customers looking for long-term certainty and value.”
2022 guidance remains unchanged. The complete 2022 guidance is as follows:
| Prior | Current | |
|---|---|---|
| Net Sales | $2.4B to $2.6B | Unchanged |
| Gross Margin (1) | $155M to $215M | Unchanged |
| Operating Expenses (2) | $365M to $380M | Unchanged |
| Operating Income (3)(4) | $55M to $150M | Unchanged |
| Earnings per Diluted Share | $0.00 to $0.60 | Unchanged |
| Net Cash Balance (5) | $1.1B to $1.35B | Unchanged |
| 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 $85 million to $90 million of production start-up expense
(3)Includes $95 million to $105 million of production start-up expense and underutilization losses
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(4)Includes $270 million to $290 million pre-tax gain related to the potential sale of the Japan project development and O&M platform
(5)Defined as cash, cash equivalents, 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 first quarter 2022 financial results, 2022 guidance, and financial outlook.
Conference Call Details
First Solar has scheduled a conference call for today, April 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, May 12, 2022 and can be accessed by dialing +1 (800) 585-8367 if you are calling from within the United States or +1 (416) 621-4642 if you are calling from outside the United States and entering the replay passcode 9984077. 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 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 concerning: demand for our technology; our expected module shipment backlog; the progression of our Japan project development and O&M platform sale discussions; our financial guidance for 2022, net sales, gross margin, operating expenses, operating income, earnings per share, net cash balance, capital expenditures, shipments, bookings, products and our business and financial objectives for 2022; our ability to attract customers looking for long term certainty and value. 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; interest rate fluctuations and both our and our customers’ ability to secure financing; our ability to execute on our long-term strategic plans;
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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)
| March 31,<br>2022 | December 31,<br>2021 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash | $ | 1,326,363 | $ | 1,450,654 |
| Marketable securities | 223,091 | 375,389 | ||
| Accounts receivable trade, net | 293,357 | 429,436 | ||
| Accounts receivable unbilled, net | 28,764 | 25,273 | ||
| Inventories | 840,750 | 666,299 | ||
| Other current assets | 282,668 | 244,192 | ||
| Total current assets | 2,994,993 | 3,191,243 | ||
| Property, plant and equipment, net | 2,785,824 | 2,649,587 | ||
| PV solar power systems, net | 214,386 | 217,293 | ||
| Project assets | 391,774 | 315,488 | ||
| Deferred tax assets, net | 61,794 | 59,162 | ||
| Restricted marketable securities | 220,167 | 244,726 | ||
| Goodwill | 14,462 | 14,462 | ||
| Intangible assets, net | 42,769 | 45,509 | ||
| Inventories | 237,854 | 237,512 | ||
| Other assets | 435,202 | 438,764 | ||
| Total assets | $ | 7,399,225 | $ | 7,413,746 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 146,233 | $ | 193,374 |
| Income taxes payable | 4,759 | 4,543 | ||
| Accrued expenses | 334,975 | 288,450 | ||
| Current portion of long-term debt | 4,701 | 3,896 | ||
| Deferred revenue | 218,923 | 201,868 | ||
| Other current liabilities | 25,399 | 34,747 | ||
| Total current liabilities | 734,990 | 726,878 | ||
| Accrued solar module collection and recycling liability | 137,455 | 139,145 | ||
| Long-term debt | 247,354 | 236,005 | ||
| Other liabilities | 404,251 | 352,167 | ||
| Total liabilities | 1,524,050 | 1,454,195 | ||
| Commitments and contingencies | ||||
| Stockholders’ equity: | ||||
| Common stock, $0.001 par value per share; 500,000,000 shares authorized; 106,583,300 and 106,332,315 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 107 | 106 | ||
| Additional paid-in capital | 2,863,318 | 2,871,352 | ||
| Accumulated earnings | 3,141,200 | 3,184,455 | ||
| Accumulated other comprehensive loss | (129,450) | (96,362) | ||
| Total stockholders’ equity | 5,875,175 | 5,959,551 | ||
| Total liabilities and stockholders’ equity | $ | 7,399,225 | $ | 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 | ||||||
|---|---|---|---|---|---|---|
| March 31,<br>2022 | December 31,<br>2021 | March 31,<br>2021 | ||||
| Net sales | $ | 367,040 | $ | 907,319 | $ | 803,374 |
| Cost of sales | 355,577 | 660,830 | 618,607 | |||
| Gross profit | 11,463 | 246,489 | 184,767 | |||
| Operating expenses: | ||||||
| Selling, general and administrative | 36,728 | 38,411 | 52,087 | |||
| Research and development | 27,108 | 29,881 | 19,873 | |||
| Production start-up | 7,338 | 5,038 | 11,354 | |||
| Total operating expenses | 71,174 | 73,330 | 83,314 | |||
| Gain on sales of businesses, net | 1,907 | — | 150,895 | |||
| Operating (loss) income | (57,804) | 173,159 | 252,348 | |||
| Foreign currency loss, net | (4,198) | (3,362) | (2,595) | |||
| Interest income | 2,325 | 2,183 | 956 | |||
| Interest expense, net | (2,865) | (2,530) | (2,996) | |||
| Other (expense) income, net | (212) | (2,284) | 8,448 | |||
| (Loss) income before taxes | (62,754) | 167,166 | 256,161 | |||
| Income tax benefit (expense) | 19,499 | (35,796) | (46,490) | |||
| Net (loss) income | $ | (43,255) | $ | 131,370 | $ | 209,671 |
| Net (loss) income per share: | ||||||
| Basic | $ | (0.41) | $ | 1.24 | $ | 1.98 |
| Diluted | $ | (0.41) | $ | 1.23 | $ | 1.96 |
| Weighted-average number of shares used in per share calculations: | ||||||
| Basic | 106,412 | 106,327 | 106,088 | |||
| Diluted | 106,412 | 107,007 | 106,890 |
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