RICHMOND, Calif., Feb. 15, 2023 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced financial results for the fourth quarter, ending January 1, 2023.
"Solar helps customers reduce and stabilize their escalating electricity bills while making a positive impact on the planet. With more consumers transitioning toward full home electrification, and new incentives to support that transition, the solar value proposition is more compelling than it's ever been," said Peter Faricy, SunPower CEO. "This is evident in our 2022 results: we beat our topline guidance for customer growth, closing the year with SunPower on more than half a million roofs in the U.S. We enter 2023 with our lowest level of net debt since first issuing convertible debt after the IPO over 15 years ago, diverse new supply agreements, and a clear strategy to remain the industry leader in customer experience."
BUSINESS HIGHLIGHTS
World-class customer experience
Best, most affordable products
Growth
Digital innovation
World-class financial solutions
1 Based on public solar providers in the U.S. Includes average of BBB, Yelp, ConsumerAffairs, BestCompany, Google, SolarReviews and EnergySage reviews scores as of 12/31/22. |
Financial Highlights
($ Millions, except percentages, residential customers, and per-share data) | 4th Quarter2022 | 3rd Quarter 2022 | 4th Quarter 2021 | Fiscal Year 2022 | Fiscal Year 2021 |
GAAP revenue from continuing operations | $497.3 | $475.7 | $347.8 | $1,741.1 | $1,132.0 |
GAAP gross margin from continuing operations | 21.0 % | 22.2 % | 17.3 % | 20.9 % | 20.3 % |
GAAP net income (loss) from continuing operations | $7.6 | $139.4 | $38.9 | $102.4 | $6.1 |
GAAP net income (loss) from continuing operations per diluted share | $0.04 | $0.74 | $0.22 | $0.59 | $0.03 |
Non-GAAP revenue from continuing operations1 | $492.4 | $469.8 | $347.5 | $1,712.4 | $1,121.2 |
Non-GAAP gross margin from continuing operations1 | 21.3 % | 22.8 % | 17.9 % | 21.8 % | 21.0 % |
Non-GAAP net income (loss)from continuing operations1 | $26.2 | $23.6 | $4.1 | $57.9 | $46.8 |
Non-GAAP net income (loss)from continuing operations per diluted share1 | $0.15 | $0.13 | $0.02 | $0.33 | $0.27 |
Adjusted EBITDA1 | $36.2 | $32.6 | $7.7 | $95.1 | $75.3 |
Residential customers | 510,400 | 486,700 | 427,300 | 510,400 | 427,300 |
Cash2 | $377.0 | $396.5 | $123.7 | $377.0 | $123.7 |
The sale of our C&I Solutions business met the criteria for classification as "discontinued operations" in accordance with the guidance in ASC 205-20, Discontinued Operations, beginning the first quarter of fiscal 2022. For all periods presented, the financial results of C&I Solutions are excluded in the table above. |
1Information about SunPower's use of non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP Financial Measures" below |
2Includes cash, and cash equivalents, excluding restricted cash |
Looking toward 2023 "We will continue to invest in the business in 2023 to ensure SunPower remains at the forefront of home electrification while expanding access to solar so more Americans can realize its benefits," said Faricy. "Among our many advancements this year, we plan to launch a bi-directional charging product through our collaboration with GM and introduce more of their customers to solar; roll out our work with OhmConnect as well as add more Virtual Power Plant (VPP) offerings that enable customers to save more money while helping improve grid stability; expand our multifamily footprint; make more enhancements to SunVault storage; and elevate the digital experience to make it easier than ever to switch to solar."
2023 Financial Outlook SunPower initiated 2023 guidance of $2,450-$2,900 adjusted EBITDA per customer before platform investment and 90,000-110,000 incremental customers, resulting in $125-$155 million Adjusted EBITDA for the year.
Earnings Conference Call InformationSunPower will discuss its fourth quarter 2022 financial results on Wednesday, February 15 at 5 p.m. Eastern Time. The conference call can be accessed live by registering at https://edge.media-server.com/mmc/p/kqr37kfz.
About SunPowerSunPower (NASDAQ:SPWR) is a leading solar technology and energy services provider in North America. SunPower offers the only solar + storage solution designed and warranted by one company that gives customers control over electricity consumption and resiliency during power outages. For more information, visit www.sunpower.com.
Forward-Looking StatementsThis 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) expectations regarding demand and our future performance based on backlog, bookings, projected consumer demand, and pipelines in our sales channels and for our products, and our ability to meet consumer demand; (b) our plans and expectations with respect to our strategic partnerships and initiatives, including our relationship with General Motors, OhmConnect, and Maxeon and other suppliers, and the anticipated business and financial impacts thereof; (c) our strategic plans and areas of investment and focus, both current and future, and expectations for the results thereof, including improved customer experience, lease and loan funding capacity, increased installation capacity, and development of new products and services; (d) our expectations regarding projected demand and growth in 2023 and beyond, our positioning for future success, and our ability to capture demand and deliver long-term value to our shareholders; (e) our expectations for industry trends and factors, and the impact thereof on our business and strategic plans; (f) the availability and sufficiency of the supply of products and raw materials to meet consumer demand; and (g) our guidance for fiscal year 2023, including Adjusted EBITDA per customer, incremental customers, and Adjusted EBITDA, as well as platform investments and related assumptions.
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) regulatory changes and the availability of economic incentives promoting use of solar energy; (2) potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including impacts of the COVID-19 pandemic, and other factors; (3) competition in the solar and general energy industry, supply chain constraints, interest rates, inflation, and pricing pressures; (4) changes in public policy, including the imposition and applicability of tariffs and duties; (5) our dependence on sole- or limited-source supply relationships, including for our solar panels and other components of our products; (6) risks related to the introduction of new or enhanced products, including potential technical challenges, lead times, and our ability to match supply with demand while maintaining quality, sales, and support standards; (7) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (8) our liquidity, indebtedness, and ability to obtain additional financing for our projects and customers; and (9) challenges managing our acquisitions, joint ventures, and partnerships, including our ability to successfully manage acquired assets and supplier relationships. 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.
©2023 SunPower Corporation. All rights reserved. SUNPOWER, SUNPOWER FINANCIAL, SUNVAULT, and the SUNPOWER logo are trademarks or registered trademarks of SunPower Corporation in the U.S.
SUNPOWER CORPORATIONCONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) | |||
January 1, 2023 | January 2, 2022 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 377,026 | $ 123,735 | |
Restricted cash and cash equivalents, current portion | 9,855 | 691 | |
Short-term investments | 132,480 | 365,880 | |
Accounts receivable, net | 174,577 | 121,268 | |
Contract assets | 50,692 | 25,994 | |
Inventories | 316,815 | 214,432 | |
Advances to suppliers, current portion | 9,309 | 462 | |
Prepaid expenses and other current assets | 197,760 | 100,212 | |
Current assets of discontinued operations | — | 120,792 | |
Total current assets | 1,268,514 | 1,073,466 | |
Restricted cash and cash equivalents, net of current portion | 15,151 | 14,887 | |
Property, plant and equipment, net | 74,522 | 33,560 | |
Operating lease right-of-use assets | 36,926 | 31,654 | |
Solar power systems leased, net | 41,779 | 45,502 | |
Goodwill | 126,338 | 126,338 | |
Other intangible assets, net | 24,192 | 24,879 | |
Other long-term assets | 192,585 | 156,994 | |
Long-term assets of discontinued operations | — | 47,526 | |
Total assets | $ 1,780,007 | $ 1,554,806 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 242,229 | $ 138,514 | |
Accrued liabilities | 145,229 | 101,980 | |
Operating lease liabilities, current portion | 11,356 | 10,753 | |
Contract liabilities, current portion | 144,209 | 62,285 | |
Short-term debt | 82,404 | 109,568 | |
Convertible debt, current portion | 424,919 | — | |
Current liabilities of discontinued operations | — | 86,496 | |
Total current liabilities | 1,050,346 | 509,596 | |
Long-term debt | 308 | 380 | |
Convertible debt, net of current portion | — | 423,677 | |
Operating lease liabilities, net of current portion | 29,347 | 28,566 | |
Contract liabilities, net of current portion | 11,555 | 18,705 | |
Other long-term liabilities | 112,797 | 141,197 | |
Long-term liabilities of discontinued operations | — | 42,661 | |
Total liabilities | 1,204,353 | 1,164,782 | |
Equity: | |||
Common stock | 174 | 173 | |
Additional paid-in capital | 2,855,930 | 2,714,500 | |
Accumulated deficit | (2,066,175) | (2,122,212) | |
Accumulated other comprehensive income (loss) | 11,568 | 11,168 | |
Treasury stock, at cost | (226,646) | (215,240) | |
Total stockholders' equity | 574,851 | 388,389 | |
Noncontrolling interests in subsidiaries | 803 | 1,635 | |
Total equity | 575,654 | 390,024 | |
Total liabilities and equity | $ 1,780,007 | $ 1,554,806 |
SUNPOWER CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited) | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1, 2023 | October 2, 2022 | January 2, 2022 | January 1, 2023 | January 2, 2022 | ||||||
Total revenues | $ 497,312 | $ 475,711 | $ 347,830 | $ 1,741,072 | $ 1,132,029 | |||||
Total cost of revenues | 392,664 | 370,264 | 287,585 | 1,377,169 | 902,718 | |||||
Gross profit | 104,648 | 105,447 | 60,245 | 363,903 | 229,311 | |||||
Operating expenses: | ||||||||||
Research and development | 5,560 | 6,784 | 4,214 | 24,759 | 15,711 | |||||
Sales, general, and administrative | 82,160 | 87,124 | 68,717 | 339,323 | 204,166 | |||||
Restructuring charges (credits) | — | 111 | 175 | 244 | 4,519 | |||||
(Gain) loss on sale andimpairment of residential leaseassets | — | — | — | — | (294) | |||||
(Gain) loss on business divestitures, net | — | — | — | — | (5,290) | |||||
Expense (income) from transition services agreement, net | 1,356 | (1,059) | 956 | 69 | (4,255) | |||||
Total operating expenses | 89,076 | 92,960 | 74,062 | 364,395 | 214,557 | |||||
Operating income (loss) | 15,572 | 12,487 | (13,817) | (492) | 14,754 | |||||
Other income (expense), net: | ||||||||||
Interest income | 2,922 | 144 | — | 3,200 | 168 | |||||
Interest expense | (6,342) | (4,216) | (5,203) | (21,566) | (24,031) | |||||
Other, net | (6,755) | 135,368 | 68,871 | 115,405 | 22,332 | |||||
Other (expense) income, net | (10,175) | 131,296 | 63,668 | 97,039 | (1,531) | |||||
Income (loss) from continuingoperations before income taxes and equity in earnings (losses) of unconsolidated investees | 5,397 | 143,783 | 49,851 | 96,547 | 13,223 | |||||
Benefits from (provision for)income taxes | 2,856 | (3,109) | (10,814) | 8,164 | (7,267) | |||||
Equity in earnings (losses) ofunconsolidated investees | 365 | 1,958 | — | 2,323 | — | |||||
Net income (loss) from continuingoperations | 8,618 | 142,632 | 39,037 | 107,034 | 5,956 | |||||
(Loss) income from discontinued operations beforeincome taxes | — | — | (18,645) | (47,155) | (46,046) | |||||
Benefits from (provision for)income taxes | — | — | 602 | 584 | 2,048 | |||||
Net (loss) income from discontinued operations | — | — | (18,043) | (46,571) | (43,998) | |||||
Net income (loss) | 8,618 | 142,632 | 20,994 | 60,463 | (38,042) | |||||
Net (income) loss from continuing operations attributable to noncontrolling interests | (1,005) | (3,225) | (176) | (4,676) | 145 | |||||
Net (income) loss from discontinued operations attributable to noncontrolling interests | — | — | (622) | 250 | 539 | |||||
Net (income) loss attributable tononcontrolling interests | (1,005) | (3,225) | (798) | (4,426) | 684 | |||||
Net income (loss) from continuing operations attributable tostockholders | 7,613 | 139,407 | 38,861 | 102,358 | 6,101 | |||||
Net (loss) income from discontinued operations attributableto stockholders | — | — | (18,665) | (46,321) | (43,459) | |||||
Net income (loss) attributable tostockholders | $ 7,613 | $ 139,407 | $ 20,196 | $ 56,037 | $ (37,358) | |||||
Net income (loss) per share attributable to stockholders - basic: | ||||||||||
Continuing operations | $ 0.04 | $ 0.80 | $ 0.22 | $ 0.59 | $ 0.03 | |||||
Discontinued operations | $ — | $ — | $ (0.11) | $ (0.27) | $ (0.25) | |||||
Net income (loss) per share - basic | $ 0.04 | $ 0.80 | $ 0.11 | $ 0.32 | $ (0.22) | |||||
Net income (loss) per share attributable to stockholders - diluted: | ||||||||||
Continuing operations | $ 0.04 | $ 0.74 | $ 0.22 | $ 0.59 | $ 0.03 | |||||
Discontinued operations | $ — | $ — | $ (0.11) | $ (0.27) | $ (0.25) | |||||
Net income (loss) per share - diluted | $ 0.04 | $ 0.74 | $ 0.11 | $ 0.32 | $ (0.22) | |||||
Weighted-average shares: | ||||||||||
Basic | 174,231 | 174,118 | 173,019 | 173,919 | 172,436 | |||||
Diluted | 175,518 | 192,497 | 192,875 | 174,603 | 175,116 |
SUNPOWER CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1,2023 | October 2, 2022 | January 2, 2022 | January 1, 2023 | January 2, 2022 | ||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ 8,618 | $ 142,632 | $ 20,994 | $ 60,463 | $ (38,042) | |||||
Adjustments to reconcile netincome (loss) to net cash used in operating activities: | ||||||||||
Depreciation and amortization | 9,504 | 8,048 | 4,008 | 34,600 | 11,506 | |||||
Stock-based compensation | 7,378 | 6,557 | 6,126 | 26,434 | 25,902 | |||||
Non-cash interest expense | 1,108 | 997 | 947 | 3,664 | 5,042 | |||||
Equity in (earnings) losses of unconsolidated investees | (365) | (1,958) | — | (2,323) | — | |||||
Loss (gain) on equityinvestments | 6,255 | (134,905) | (68,950) | (114,710) | (21,712) | |||||
(Gain) loss on sale of investments | — | — | — | — | (1,162) | |||||
(Gain) loss on businessdivestitures, net | — | — | — | — | (224) | |||||
Unrealized loss (gain) onderivatives | 11 | (2,304) | — | (2,293) | — | |||||
Dividend from equity methodinvestees | (13) | 133 | — | 120 | — | |||||
Deferred income taxes | (1,367) | (1,410) | 9,797 | (13,973) | 5,688 | |||||
(Gain) loss on sale andimpairment of residential leaseassets | — | — | — | — | (226) | |||||
Other, net | 1,081 | (821) | 439 | 1,209 | (5,670) | |||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 2,643 | (28,315) | (14,099) | (63,611) | (18,549) | |||||
Contract assets | (11,943) | (5,007) | 6,163 | (9,617) | 34,850 | |||||
Inventories | (88,562) | (5,728) | (1,567) | (111,349) | (5,325) | |||||
Project assets | — | — | 1,581 | 295 | 4,398 | |||||
Prepaid expenses and other assets | 9,690 | (42,366) | (21,786) | (202,474) | (32,701) | |||||
Operating lease right-of-use assets | 2,833 | 2,992 | 2,548 | 11,257 | 11,257 | |||||
Advances to suppliers | (2,877) | (4,216) | 225 | (9,165) | (462) | |||||
Accounts payable and other accrued liabilities | 45,142 | 31,326 | 39,976 | 122,986 | (16,269) | |||||
Contract liabilities | 1,921 | 32,390 | 13,736 | 100,584 | 10,229 | |||||
Operating lease liabilities | (2,673) | (3,334) | (2,549) | (13,579) | (13,006) | |||||
Net cash (used in) provided by operating activities | (11,616) | (5,289) | (2,411) | (181,482) | (44,476) | |||||
Cash flows from investing activities: | ||||||||||
Purchases of property, plant, and equipment | (11,849) | (15,375) | (6,090) | (48,807) | (10,024) | |||||
Investments in software development costs | (1,465) | (1,500) | (1,051) | (5,690) | (3,519) | |||||
Proceeds from sale of property, plant, and equipment | — | — | — | — | 900 | |||||
Cash paid for solar power systems | — | — | — | — | (635) | |||||
Cash received from sale of investments | — | — | — | — | 1,200 | |||||
Proceeds from business divestitures, net of de-consolidated cash | — | — | — | 146,303 | 10,516 | |||||
Cash paid for acquisitions, net of cash acquired | — | — | (124,200) | — | (124,200) | |||||
Cash paid for equityinvestments under the DealerAccelerator Program and other | — | (14,500) | — | (30,920) | — | |||||
Proceeds from sale of equityinvestment | — | 290,278 | — | 440,108 | 177,780 | |||||
Proceeds from return of capital from equity investments | — | — | — | — | 2,276 | |||||
Cash paid for investments in unconsolidated investees | (2,431) | (2,424) | — | (8,173) | — | |||||
Dividend from equity method investees | 13 | 137 | — | 150 | — | |||||
Net cash (used in) provided byinvesting activities | (15,732) | 256,616 | (131,341) | 492,971 | 54,294 | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from bank loans and other debt | 21,482 | 24,453 | 28,412 | 146,211 | 152,081 | |||||
Repayment of bank loans and other debt | (15,271) | (68,959) | (24,385) | (182,274) | (180,771) | |||||
Repayment of non-recourseresidential and commercial financing | — | — | — | — | (9,798) | |||||
Distributions to noncontrollinginterests attributable toresidential projects | (9,201) | — | — | (9,201) | — | |||||
Repayment of convertible debt | — | — | — | — | (62,757) | |||||
Payments for financing leases | (666) | (617) | — | (1,401) | — | |||||
Issuance of common stock to executive | — | — | — | — | 2,998 | |||||
Purchases of stock for tax withholding obligations on vested restricted stock | (943) | (874) | (2,500) | (11,405) | (9,762) | |||||
Net cash (used in) provided byfinancing activities | (4,599) | (45,997) | 1,527 | (58,070) | (108,009) | |||||
Effect of exchange rate changes on cash, cash equivalents, andrestricted cash | — | — | — | — | — | |||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (31,947) | 205,330 | (132,225) | 253,419 | (98,191) | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 433,979 | 228,649 | 280,838 | 148,613 | 246,804 | |||||
Cash, cash equivalents, andrestricted cash, end of period | $ 402,032 | $ 433,979 | $ 148,613 | $ 402,032 | $ 148,613 | |||||
Reconciliation of cash, cashequivalents, and restricted cashto the consolidated balancesheets, including discontinued operations: | ||||||||||
Cash and cash equivalents | $ 377,026 | $ 396,510 | $ 127,130 | $ 377,026 | $ 127,130 | |||||
Restricted cash and cash equivalents, current portion | 9,855 | 13,204 | 4,157 | 9,855 | 4,157 | |||||
Restricted cash and cash equivalents, net of current portion | 15,151 | 24,265 | 17,326 | 15,151 | 17,326 | |||||
Total cash, cash equivalents, and restricted cash | $ 402,032 | $ 433,979 | $ 148,613 | $ 402,032 | $ 148,613 | |||||
Supplemental disclosure of cash flow information: | ||||||||||
Property, plant, and equipment acquisitions funded byliabilities (including financingleases) | $ 3,298 | $ 4,495 | $ (1,210) | $ 12,428 | $ 1,320 | |||||
Right-of-use assets obtained inexchange for lease obligations | $ 1,464 | $ 12,479 | $ 3,671 | $ 15,469 | $ 19,628 | |||||
Working capital adjustment related to C&I Solutions sale | $ — | $ 740 | $ — | $ 7,005 | $ — | |||||
Accrued legal expenditures on equity method investment | $ 130 | $ 5 | $ — | $ 298 | $ — | |||||
Accrued debt issuance costs | $ (437) | $ 919 | $ — | $ 482 | $ — | |||||
De-consolidation of right-of-use assets and lease obligations | $ — | $ — | $ — | $ — | $ 3,340 | |||||
Debt repaid in sale of commercial projects | $ — | $ — | $ — | $ — | $ 5,585 | |||||
Fair value of contingent consideration for businesscombination | $ — | $ — | $ 11,100 | $ — | $ 11,100 | |||||
Cash paid for interest | $ 741 | $ 9,137 | $ 1,555 | $ 21,064 | $ 25,289 | |||||
Cash paid for income taxes | $ 2,250 | $ 2,687 | $ 2,509 | $ 7,437 | $ 22,825 |
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures listed below are: revenue; gross margin; net loss; net loss per diluted share; and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Management believes that each of these non-GAAP measures are 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 provide 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 analysis. 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; and therefore, 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 results of operations of legacy business exited/to be exited. Non-GAAP gross margin includes adjustments relating to gain/loss on sale and impairment of residential lease assets, litigation, stock-based compensation, and amortization of intangible assets, each of which is described below. In addition to the above adjustments, non-GAAP net loss and non-GAAP net loss per diluted share are adjusted for adjustments relating to mark to market gain on equity investments, gain on business divestitures, impairment of property, plant, and equipment, transaction-related costs, non-cash interest expense, restructuring charges (credits), gain on convertible debt repurchased and tax effect of these non-GAAP adjustments, each of which is described below. In addition to the above adjustments, Adjusted EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for income taxes, and depreciation.
Non-GAAP Adjustments Based on International Financial Reporting Standards ("IFRS")
The company's non-GAAP results include adjustments under IFRS that are consistent with the adjustments made in connection with the company's internal reporting process as part of its status as a subsidiary and equity method investee of TotalEnergies SE, a foreign public registrant that reports under IFRS. Differences between GAAP and IFRS reflected in the company's non-GAAP results are further described below. In these situations, management believes that IFRS enables investors to better evaluate the company's performance, and assists in aligning the perspectives of the management with those of TotalEnergies SE.
Other Non-GAAP Adjustments
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 CORPORATIONRECONCILIATIONS 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 | |||||||||
January 1, 2023 | October 2,2022 | January 2, 2022 | January 1, 2023 | January 2, 2022 | ||||||
GAAP revenue | $ 497,312 | $ 475,711 | $ 347,830 | $ 1,741,072 | $ 1,132,029 | |||||
Other adjustments: | ||||||||||
Results of operations of legacy business to be exited | (4,893) | (5,894) | (318) | (28,669) | (10,824) | |||||
Non-GAAP revenue | $ 492,419 | $ 469,817 | $ 347,512 | $ 1,712,403 | $ 1,121,205 |
Adjustments to Gross Profit (Loss) / Margin: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1, 2023 | October 2, 2022 | January 2, 2022 | January 1, 2023 | January 2,2022 | ||||||
GAAP gross profit from continuing operations | $ 104,648 | $ 105,447 | $ 60,245 | $ 363,903 | $ 229,310 | |||||
Other adjustments: | ||||||||||
Results of operations of legacy business to be exited | (403) | 659 | 1,586 | 5,344 | 5,180 | |||||
(Gain) loss on sale andimpairment of residential leaseassets | (268) | (276) | (275) | (1,101) | (1,537) | |||||
Executive transition costs | (321) | 60 | — | 202 | — | |||||
Stock-based compensationexpense | 1,257 | 1,135 | 708 | 4,689 | 2,549 | |||||
Transaction-related costs | — | — | — | 56 | — | |||||
Business reorganization costs | — | — | — | 11 | — | |||||
Non-GAAP gross profit | $ 104,913 | $ 107,025 | $ 62,264 | $ 373,104 | $ 235,502 | |||||
GAAP gross margin (%) | 21.0 % | 22.2 % | 17.3 % | 20.9 % | 20.3 % | |||||
Non-GAAP gross margin (%) | 21.3 % | 22.8 % | 17.9 % | 21.8 % | 21.0 % |
Adjustments to Net Income (Loss): | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1, 2023 | October 2, 2022 | January 2, 2022 | January 1,2023 | January 2, 2022 | ||||||
GAAP net income (loss) from continuing operations attributableto stockholders | $ 7,613 | $ 139,407 | $ 38,861 | $ 102,358 | $ 6,101 | |||||
Adjustments based on IFRS: | ||||||||||
Mark-to-market loss (gain) on equity investments | 6,255 | (137,233) | (68,950) | (117,038) | (21,712) | |||||
Other adjustments: | ||||||||||
Results of operations of legacy business to be exited | 708 | 3,388 | 2,661 | 14,532 | 11,683 | |||||
(Gain) loss on sale andimpairment of residential leaseassets | (268) | (276) | (275) | (1,101) | (6,494) | |||||
Litigation | 1,242 | 488 | (9,311) | 5,073 | 892 | |||||
Stock-based compensation expense | 7,372 | 6,550 | 5,217 | 26,305 | 22,752 | |||||
Amortization of intangibleassets and software | 2,780 | 2,786 | 1,579 | 10,331 | 1,579 | |||||
(Gain) loss on businessdivestitures, net | — | — | — | — | (5,290) | |||||
Transaction-related costs | 44 | 144 | (22) | 1,411 | 72 | |||||
Executive transition costs | 3,599 | 1,685 | 1,254 | 10,437 | 2,583 | |||||
Business reorganization costs | 1 | 5 | (129) | 4,527 | 2,771 | |||||
Restructuring (credits) charges | — | — | 190 | (453) | 802 | |||||
Acquisition-related costs | 114 | 3,338 | 18,764 | 11,570 | 18,764 | |||||
Tax effect | (2,858) | 3,507 | 14,257 | (9,512) | 12,307 | |||||
Equity (income) loss from unconsolidated investees | (364) | (158) | — | (522) | — | |||||
Non-GAAP net income (loss) attributable to stockholders | $ 26,238 | $ 23,631 | $ 4,096 | $ 57,918 | $ 46,810 |
Adjustments to Net Income (loss) per diluted share | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1, 2023 | October 2, 2022 | January 2, 2022 | January 1, 2023 | January 2,2022 | ||||||
Net income (loss) per diluted share | ||||||||||
Numerator: | ||||||||||
GAAP net income (loss) available to common stockholders1 | $ 7,613 | $ 139,407 | $ 38,861 | $ 102,358 | $ 6,101 | |||||
Add: Interest expense on 4.00% debenture due 2023, net of tax | — | 3,026 | 3,026 | — | — | |||||
GAAP net income (loss) available to common stockholders1 | $ 7,613 | $ 142,433 | $ 41,887 | $ 102,358 | $ 6,101 | |||||
Non-GAAP net income (loss) available to common stockholders1 | $ 26,238 | $ 23,631 | $ 4,096 | $ 57,918 | $ 46,810 | |||||
Denominator: | ||||||||||
GAAP weighted-average shares | 174,231 | 174,118 | 173,019 | 173,919 | 172,436 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 1,287 | 1,311 | 2,788 | 684 | 2,680 | |||||
4.00% debentures due2023 | — | 17,068 | 17,068 | — | — | |||||
GAAP dilutive weighted-average common shares: | 175,518 | 192,497 | 192,875 | 174,603 | 175,116 | |||||
Non-GAAP weighted-average shares | 174,231 | 174,118 | 173,019 | 173,919 | 172,436 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 1,287 | 1,311 | 2,788 | 684 | 2,680 | |||||
Non-GAAP dilutive weighted-average commonshares1 | 175,518 | 175,429 | 175,807 | 174,603 | 175,116 | |||||
GAAP dilutive net income (loss) per share - continuingoperations | $ 0.04 | $ 0.74 | $ 0.22 | $ 0.59 | $ 0.03 | |||||
Non-GAAP dilutive netincome (loss) per share - continuing operations | $ 0.15 | $ 0.13 | $ 0.02 | $ 0.33 | $ 0.27 |
1In accordance with the if-converted method, net (loss) income available to common stockholders excludes interest expense related to the 4.00% debentures if the debentures are considered converted in the calculation of net (loss) 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 (loss) per diluted share. |
Adjusted EBITDA: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
January 1, 2023 | October 2, 2022 | January 2,2022 | January 1, 2023 | January 2, 2022 | ||||||
GAAP net income (loss) from continuing operations attributableto stockholders | $ 7,613 | $ 139,407 | $ 38,861 | $ 102,358 | $ 6,101 | |||||
Adjustments based on IFRS: | ||||||||||
Mark-to-market loss (gain) on equity investments | 6,255 | (137,233) | (68,950) | (117,038) | (21,712) | |||||
Other adjustments: | ||||||||||
Results of operations of legacy business to be exited | 708 | 3,388 | 2,661 | 14,532 | 11,683 | |||||
(Gain) loss on sale and impairment of residential leaseassets | (268) | (276) | (275) | (1,101) | (6,494) | |||||
Litigation | 1,242 | 488 | (9,311) | 5,073 | 892 | |||||
Stock-based compensation expense | 7,372 | 6,550 | 5,217 | 26,305 | 22,752 | |||||
Amortization of intangible assets and software | 2,780 | 2,786 | 1,579 | 10,331 | 1,579 | |||||
(Gain) loss on business divestitures, net | — | — | — | — | (5,290) | |||||
Transaction-related costs | 44 | 144 | (22) | 1,411 | 72 | |||||
Executive transition costs | 3,599 | 1,685 | 1,254 | 10,437 | 2,583 | |||||
Business reorganization costs | 1 | 5 | (129) | 4,527 | 2,771 | |||||
Restructuring charges | — | — | 190 | (453) | 802 | |||||
Acquisition-related costs | 114 | 3,338 | 18,764 | 11,570 | 18,764 | |||||
Equity (income) loss from unconsolidated investees | (364) | (158) | — | (522) | — | |||||
Cash interest expense, net of interest income | 3,480 | 4,108 | 5,141 | 18,295 | 23,634 | |||||
(Benefit from) provision forincome taxes | (2,883) | 3,082 | 10,242 | (8,757) | 6,657 | |||||
Depreciation | 6,476 | 5,257 | 2,508 | 18,177 | 10,500 | |||||
Adjusted EBITDA | $ 36,169 | $ 32,571 | $ 7,730 | $ 95,145 | $ 75,294 |
FY 2023 GUIDANCE | |
(in thousands) | FY 2023 |
Residential Customers | 90,000 - 110,000 |
Residential Adjusted EBITDA/Customer1 | $2,450 - $2,900 |
Adjusted EBITDA2 | $125 million - $155 million |
Net Income (GAAP) | $52 million - $82 million |
1. | Excluding Product & Digital operating expenses for Residential only. |
2. | Adjusted EBITDA guidance for FY 2023 includes net adjustments that increase GAAP net income by approximately $73 million primarily relating to the following adjustments: stock-based compensation expense, results of operations of businesses exited/to be exited, acquisition-related costs, interest expense, depreciation and amortization, income taxes, and other non-recurring adjustments. |
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SOURCE SunPower Corp.