SAN JOSE, Calif., Aug. 5, 2020 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR) today announced financial results for its second quarter ended June 28, 2020.
Second Quarter Company Highlights
SunPower Energy Services (SPES)
SunPower Technologies (SPT)
($ Millions, except percentages and per-share data) | 2nd Quarter 2020 | 1st Quarter 2020 | 2nd Quarter 2019 |
GAAP revenue | $352.9 | $449.2 | $436.3 |
GAAP gross margin | 6.1% | 8.3% | 4.5% |
GAAP net income (loss) | $19.4 | $(1.4) | $121.5 |
GAAP net income (loss) per diluted share | $0.11 | $(0.01) | $0.75 |
Non-GAAP revenue1 | $352.9 | $454.4 | $481.9 |
Non-GAAP gross margin1 | 9.8% | 12.5% | 10.5% |
Non-GAAP net loss1 |
$(37.2) | $(17.3) | $(31.1) |
Non-GAAP net loss per diluted share1 | $(0.22) | $(0.10) | $(0.22) |
Adjusted EBITDA1 | $(8.9) | $9.4 | $8.0 |
MW Recognized | 464 | 538 | 622 |
Cash2 | $235.3 | $205.5 | $167.3 |
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 |
Second Quarter 2020 Results"We were pleased with our second quarter performance as strong execution enabled us to exceed our guidance, generate close to $30 million in positive cash flow and launch new products despite the Covid-19 virus disruption," said Tom Werner, SunPower CEO and chairman of the board. "Overall, we saw improving trends in our global DG business throughout the quarter with particular strength in our U.S. channels business where the investments in our digital initiatives enabled us to successfully transition to an on-line model. We also took a number of important steps to complete the spin-off of Maxeon Solar Technologies as their 20-F was declared effective with an expected record date of Aug. 17, 2020 and distribution date of Aug. 26, 2020. Finally, we continued our leadership in innovation as we launched a number of new products including our SunVault residential storage solution, our OneRoof product for new homes as well as Maxeon's launch of its new bifacial, shingled panel for the global power plant market. Looking forward, our fundamentals remain strong and are well-positioned for success given our differentiated model, new products and strong balance sheet."
SunPower Energy Services (SPES)"Our channels business executed very well in a difficult environment as we saw better than expected demand improvement as we went through the quarter. This was reflected in our financial performance as Adjusted EBITDA rose year over year with our Channels business generating $33 million in positive cash flow in the second quarter. Additionally, gross margins doubled compared to last year, primarily the result of a lower loan and lease cost of capital, increased sales in our new homes business, as well as the successful execution of our cost reduction initiatives. Our second quarter performance also reflected success in our rapid shift to our residential online sales model as we saw further customer and dealer adoption of our Design Studio and mySunPower applications, both of which improve the efficiency of the sales process while offering a superior customer experience. We were also pleased to launch our SunVault residential storage solution during the quarter and are currently rolling out this product nationally this quarter. Demand for this proprietary all-in-one storage solution is very strong with initial attach rates in above our 2020 goal of 20%. In new homes, we believe our new, innovative OneRoof product will further cement our leadership position in this segment. This product, designed in partnership with KB Home, provides a fully-integrated, attractive, durable and cost-effective solution specifically designed for this market. Builder demand for this product is also high as we have already booked 19 communities across six builders within two weeks of its initial launch. With more than 50,000 systems installed and more than 45,000 home in backlog, we are well-positioned to add to our more than 50 percent market share in new homes."
"Performance in our Commercial Direct business improved during the quarter as we posted positive Adjusted EBITDA while maintaining our leading market share. Install volume increased more than 50% year over year and we remain confident that we will achieve sustainable profitability in this business in the second half of this year. Our origination teams again performed well as approximately 100% of our 2020 forecast is currently in backlog and were pleased to recently announce our 12.8MW award from the Washington Metropolitan Area Transit Authority. Additionally, Helix storage demand remains high as our pipeline exceeds 625 megawatt hours (MWh) with attach rates of approximately 50% for the balance of the year."
SunPower Technologies (SPT) "Our SPT business posted a solid quarter as we exceeded our shipment guidance by more than 15% with all factories back to normal operations. Similar to the U.S. DG market, we saw DG demand improve as we went through the quarter with particular strength in our European and Australian markets. DG shipments totaled 67% of volume in the second quarter and we expect further recovery in the second half of the year. We also achieved a number of important milestones related to the spin-off of our Maxeon Solar Technologies business unit during the quarter including its 20-F filing which was recently declared effective with an expected share distribution date of August 26, 2020. Finally, Maxeon continued to position itself as a technology leader with the anticipated fourth quarter launch of its Perfomance-5 bifacial, up to 625W, shingled product for the global power plant market, as well as announcing their partnership with Enphase Energy to bring high-efficiency AC module technology and smart energy solutions to the international DG market."
Consolidated Financials"Our second quarter performance reflected the resilience of our business and strong execution as we quickly responded to the Covid-19 disruption," said Manavendra Sial, SunPower chief financial officer. "Our rapid response, along with the proactive implementation of a number of initiatives, enabled us to achieve positive cash generation for the quarter with $500 million in liquidity identified for Sun Power post spin. Additionally, we were pleased to see Maxeon complete its successful $200 million convertible green bond offering and closure of $125 million in banking facilities. As a result, both companies will be well capitalized post transaction. Finally, we added to our financing flexibility in the Commercial Direct space as we closed a new, innovative financing facility that allows for more efficient working capital utilization while improving our economics."
Second quarter of fiscal year 2020 non-GAAP results exclude net adjustments that, in the aggregate, increased non-GAAP loss by $56.6 million, including $71.1 million related to gain on mark-to-market gain on equity investments, and $10.5 million related to gain on business divestiture. This was partially offset by $9.6 million related to the cost of above-market polysilicon, $5.9 million related to stock-based compensation expense, $4.1 million related to business reorganization costs and restructuring charges, $2.4 million transaction-related costs, $1.8 million related to amortization of intangible assets, and $1.2 million related to other non-recurring items and tax effects.
Financial OutlookThe company's third quarter 2020 GAAP and non-GAAP guidance is as follows: on a GAAP and non-GAAP basis, revenue of $360 million to $400 million, GAAP gross margin of 0 percent to 5 percent and net loss of $110 million to $95 million.
The company's third quarter 2020 Non-GAAP gross margin and Adjusted EBITDA guidance, on a combined basis, now includes an approximate $40 million impact for the entire quarter in its SPT segment as a result of its out of market polysilicon contract. Additionally, upon completion of the Maxeon spin-off, expected on August 26, 2020, the obligation under the polysilicon contract will be retained by Maxeon and will expire in fiscal 2022.
As a result, the company expects third quarter 2020 non-GAAP gross margin of 0 percent to 6 percent and Adjusted EBITDA guidance in the range of negative $35 million to negative $20 million with SPT in the range of negative $38 to $28 million and SPES in the range of positive $8 to $14 million.
The company also expects megawatts recognized to be in the range of 500 MW to 560 MW as well as positive cash generation for SunPower in the third quarter.
For the fourth quarter and after the company's expected spin-off of Maxeon, both companies expect a continued improvement in the global solar demand environment through the end of the year, with particular strength in the DG segment.
Capital Markets Day SunPower will discuss its strategic outlook as well as provide additional details related to its fiscal year 2020 financial performance at its virtual Capital Markets Day to be held on September 10, 2020. Please note that the entire event will be webcast and relevant materials will be posted to the company's website prior to the event. To register for and listen to the webcast, investors are encouraged to visit the company's Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm prior to the event.
The company will host a conference call for investors this afternoon to discuss its second quarter 2020 performance at 1:30 p.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 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 first quarter 2020 performance on the Events and Presentations section of SunPower's Investor Relations page at http://investors.sunpower.com/events.cfm
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) statements regarding the anticipated spin-off of Maxeon Solar Technologies, including timing and certainty; (b) our positioning for future success; (c) our plans and expectations for our products and planned products, including the timing and scope of planned launches and rollouts, anticipated demand, and impacts on our market position and our ability to meet our targets and goals; (d) the expected financial performance of our business lines, including the timing of anticipated demand recovery and timing and expectations for returning our Commercial Direct business to profitability; (e) our expectations regarding our industry and market factors, including anticipated demand and volume; (f) expectations regarding our future performance based on bookings, backlog, and pipelines in our sales channels; (g) the amount, likelihood, and timing of realization of potential additional sources of liquidity; (h) our expectations for the financial impacts of our new tax-equity partnership; (i) our third quarter fiscal 2020 guidance, including GAAP revenue, gross margin, and net loss, as well as non-GAAP revenue, gross margin, Adjusted EBITDA, and MW deployed, and related assumptions; (j) plans and expectations for SunPower and Maxeon Solar Technologies post-spin off, including our expectations regarding global market factors, demand improvement and the timing and focus thereof, the expected financial performance of each company; (k) our plans and expectations regarding SunPower's ability to achieve sustainable profitability in the second half of the year and expected revenue and gross margin improvement in its business segments in the fourth quarter; (l) plans for and expected content of SunPower's planned Capital Markets Day; and (m) expected demand recovery and market traction for Maxeon Solar Technologies as a result of anticipated product launches.
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) challenges in executing transactions key to our strategic plans, including regulatory and other challenges that may arise; (2) potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including impacts of the Covid-19 pandemic; (3) 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; (4) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (5) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (6) changes in public policy, including the imposition and applicability of tariffs; (7) regulatory changes and the availability of economic incentives promoting use of solar energy; (8) fluctuations in our operating results; (9) appropriately sizing our manufacturing capacity and containing manufacturing and logistics difficulties that could arise; and (10) challenges managing our acquisitions, joint ventures and partnerships, including our ability to successfully manage acquired assets and supplier relationships. In addition, the proposed and the associated investment by TZS in Maxeon Solar may not be consummated within the anticipated period or at all and the ultimate results of any separation depend on a number of factors, including the development of final plans and the impact of local regulatory requirements. 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 report on Form 10-K, 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.
©2020 SunPower Corporation. All rights reserved. SUNPOWER, the SUNPOWER logo, EQUINOX and HELIX are trademarks or registered trademarks of SunPower Corporation in the U.S. and other countries as well.
SUNPOWER CORPORATION | |||
CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
(Unaudited) | |||
Jun. 28 | Dec. 29, | ||
2020 | 2019 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 235,307 | $ 422,955 | |
Restricted cash and cash equivalents, current portion | 30,631 | 26,348 | |
Restricted short-term marketable securities | 6,322 | 6,187 | |
Accounts receivable, net | 157,132 | 226,476 | |
Contract assets | 105,221 | 99,426 | |
Inventories | 360,416 | 358,257 | |
Advances to suppliers, current portion | 108,464 | 107,388 | |
Project assets - plants and land, current portion | 24,567 | 12,650 | |
Prepaid expenses and other current assets | 84,718 | 121,244 | |
Total current assets | 1,112,778 | 1,380,931 | |
Restricted cash and cash equivalents, net of current portion | 8,420 | 9,354 | |
Property, plant and equipment, net | 299,644 | 323,726 | |
Operating lease right-of-use assets | 56,849 | 51,258 | |
Solar power systems leased, net | 52,441 | 54,338 | |
Advances to suppliers, net of current portion | 889 | 13,993 | |
Other intangible assets, net | 3,280 | 7,466 | |
Other long-term assets | 404,222 | 330,855 | |
Total assets | $ 1,938,523 | $ 2,171,921 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 357,046 | $ 441,759 | |
Accrued liabilities | 188,113 | 203,890 | |
Operating lease liabilities, current portion | 11,833 | 9,463 | |
Contract liabilities, current portion | 88,265 | 138,441 | |
Short-term debt | 128,643 | 104,856 | |
Convertible debt, current portion | 309,228 | - | |
Total current liabilities | 1,083,128 | 898,409 | |
Long-term debt | 92,676 | 113,827 | |
Convertible debt | 421,822 | 820,259 | |
Operating lease liabilities, net of current portion | 51,073 | 46,089 | |
Contract liabilities, net of current portion | 61,782 | 67,538 | |
Other long-term liabilities | 186,737 | 204,300 | |
Total liabilities | 1,897,218 | 2,150,422 | |
Equity: | |||
Common stock | 170 | 168 | |
Additional paid-in capital | 2,674,379 | 2,661,819 | |
Accumulated deficit | (2,431,732) | (2,449,679) | |
Accumulated other comprehensive loss | (10,365) | (9,512) | |
Treasury stock, at cost | (200,796) | (192,633) | |
Total stockholders' equity | 31,656 | 10,163 | |
Noncontrolling interests in subsidiaries | 9,649 | 11,336 | |
Total equity | 41,305 | 21,499 | |
Total liabilities and equity | $ 1,938,523 | $ 2,171,921 |
SUNPOWER CORPORATION | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28 | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
Revenue: | ||||||||||
SunPower Energy Services | $ 217,885 | $ 289,869 | $ 211,726 | $ 507,754 | $ 389,947 | |||||
SunPower Technologies | 170,435 | 248,196 | 314,971 | 418,631 | 545,775 | |||||
Intersegment eliminations | (35,406) | (88,875) | (90,416) | (124,281) | (151,216) | |||||
Total revenue | 352,914 | 449,190 | 436,281 | 802,104 | 784,506 | |||||
Cost of revenue: | ||||||||||
SunPower Energy Services | 179,258 | 259,461 | 189,262 | 438,719 | 360,340 | |||||
SunPower Technologies | 186,861 | 257,129 | 317,717 | 443,990 | 600,585 | |||||
Intersegment eliminations | (34,803) | (104,848) | (90,498) | (139,651) | (158,934) | |||||
Total cost of revenue | 331,316 | 411,742 | 416,481 | 743,058 | 801,991 | |||||
Gross profit (loss) | 21,598 | 37,448 | 19,800 | 59,046 | (17,485) | |||||
Operating expenses: | ||||||||||
Research and development | 12,335 | 15,638 | 18,159 | 27,973 | 33,152 | |||||
Sales, general and administrative | 55,967 | 65,958 | 61,978 | 121,925 | 124,835 | |||||
Restructuring charges | 1,259 | 1,576 | 2,453 | 2,835 | 1,788 | |||||
(Gain) loss on sale and impairment of residential lease assets | 141 | (274) | 8,301 | (133) | 17,527 | |||||
Gain on business divestiture | (10,458) | - | (137,286) | (10,458) | (143,400) | |||||
Total operating expenses | 59,244 | 82,898 | (46,395) | 142,142 | 33,902 | |||||
Operating income (loss) | (37,646) | (45,450) | 66,195 | (83,096) | (51,387) | |||||
Other income (expense), net: | ||||||||||
Interest income | 174 | 404 | 566 | 578 | 1,418 | |||||
Interest expense | (10,205) | (10,537) | (16,424) | (20,742) | (33,215) | |||||
Other, net | 70,032 | 55,069 | 67,768 | 125,101 | 100,841 | |||||
Other income, net | 60,001 | 44,936 | 51,910 | 104,937 | 69,044 | |||||
Income (loss) before income taxes and equity in losses of unconsolidated investees | 22,355 | (514) | 118,105 | 21,841 | 17,657 | |||||
Provision for income taxes | (3,068) | (1,869) | (6,068) | (4,937) | (11,865) | |||||
Equity in earnings (losses) of unconsolidated investees | (889) | 245 | (1,963) | (644) | (283) | |||||
Net income (loss) | 18,398 | (2,138) | 110,074 | 16,260 | 5,509 | |||||
Net income attributable to noncontrolling interests and redeemable noncontrolling interests | 980 | 707 | 11,385 | 1,687 | 26,226 | |||||
Net income (loss) attributable to stockholders | $ 19,378 | $ (1,431) | $ 121,459 | $ 17,947 | $ 31,735 | |||||
Basic net income (loss) per share attributable to stockholders | $ 0.11 | $ (0.01) | $ 0.85 | $ 0.11 | $ 0.22 | |||||
Diluted net income (loss) per share attributable to stockholders | $ 0.11 | $ (0.01) | $ 0.75 | $ 0.10 | $ 0.22 | |||||
Basic weighted-average shares | 170,003 | 168,822 | 142,471 | 169,413 | 142,095 | |||||
Diluted weighted-average shares | 178,118 | 168,822 | 166,837 | 170,971 | 143,062 |
SUNPOWER CORPORATION | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | |||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ 18,398 | $ (2,138) | $ 110,074 | $ 16,260 | $ 5,509 | ||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 16,918 | 16,892 | 22,534 | 33,810 | 46,724 | ||||||
Stock-based compensation | 5,879 | 6,867 | 6,270 | 12,746 | 11,936 | ||||||
Non-cash interest expense | 1,838 | 1,910 | 2,510 | 3,748 | 4,925 | ||||||
Non-cash restructuring charges | - | - | 2,346 | - | 2,346 | ||||||
Bad debt expense | 1,326 | 2,240 | - | 3,566 | 1,661 | ||||||
Equity in (earnings) losses of unconsolidated investees | 889 | (245) | 1,963 | 644 | 283 | ||||||
Gain on equity investments | (71,062) | (49,152) | (67,500) | (120,214) | (100,500) | ||||||
Gain on retirement of convertible debt | - | (2,956) | - | (2,956) | - | ||||||
Gain on business divestiture | (10,458) | - | (137,286) | (10,458) | (143,400) | ||||||
Deferred income taxes | 1,381 | (349) | (4) | 1,032 | 2,044 | ||||||
Gain (loss) on sale and impairment of residential lease assets | 140 | 289 | 16,728 | 429 | 25,954 | ||||||
Impairment of property, plant and equipment | - | - | 777 | - | 777 | ||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 79,029 | (20,120) | (60,827) | 58,909 | (50,292) | ||||||
Contract assets | (3,164) | 295 | 5,697 | (2,869) | 7,409 | ||||||
Inventories | 36,336 | (43,061) | (20,386) | (6,725) | (62,104) | ||||||
Project assets | (3,024) | (8,881) | (6,974) | (11,905) | (6,198) | ||||||
Prepaid expenses and other assets | 9,403 | 18,635 | (27,212) | 28,038 | (15,485) | ||||||
Operating lease right-of-use assets | 4,863 | 2,923 | (11,383) | 7,786 | (8,780) | ||||||
Long-term financing receivables, net - held for sale | - | - | 657 | - | (954) | ||||||
Advances to suppliers | 3,093 | 8,936 | 11,719 | 12,029 | 24,774 | ||||||
Accounts payable and other accrued liabilities | (33,637) | (92,599) | 40,018 | (126,236) | 11,199 | ||||||
Contract liabilities | (34,324) | (16,130) | 17,996 | (50,454) | 3,418 | ||||||
Operating lease liabilities | (3,173) | (2,849) | 11,222 | (6,022) | 8,663 | ||||||
Net cash provided by (used in) operating activities | 20,651 | (179,493) | (81,061) | (158,842) | (230,091) | ||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (4,592) | (6,213) | (11,656) | (10,805) | (18,204) | ||||||
Cash paid for solar power systems | (2,037) | (610) | (15,723) | (2,647) | (43,323) | ||||||
Proceeds from sale of equity investment and return of capital by an unconsolidated investee | - | 46,149 | - | 46,149 | - | ||||||
Proceeds from sale of property, plant and equipment | - | - | 228 | - | 228 | ||||||
Proceeds from business divestiture, net of de-consolidated cash | 15,417 | - | 30,814 | 15,417 | 40,491 | ||||||
Proceeds from return of capital of equity investments with fair value option | 7,724 | - | - | 7,724 | - | ||||||
Cash paid for investments with fair value option | - | - | (10,000) | - | (10,000) | ||||||
Net cash provided by (used in) investing activities | 16,512 | 39,326 | (6,337) | 55,838 | (30,808) | ||||||
Cash flows from financing activities: | |||||||||||
Proceeds from bank loans and other debt | 44,954 | 76,544 | 75,687 | 121,498 | 143,666 | ||||||
Repayment of bank loans and other debt | (53,605) | (65,730) | (66,688) | (119,335) | (125,060) | ||||||
Proceeds from issuance of non-recourse residential financing, net of issuance costs | - | - | 43,476 | - | 65,731 | ||||||
Repayment of non-recourse residential financing | - | - | (1,156) | - | (1,156) | ||||||
Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | - | - | 8,590 | - | 29,577 | ||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | - | - | (316) | - | (316) | ||||||
Proceeds from issuance of non-recourse power plant and commercial financing, net of issuance costs | 890 | 9,754 | - | 10,644 | - | ||||||
Payment for prior business combination | - | - | (9,000) | - | (9,000) | ||||||
Cash paid for repurchase of convertible debt | - | (87,141) | - | (87,141) | - | ||||||
Settlement of contingent consideration arrangement, net of cash received | 1,811 | 423 | - | 2,234 | (2,448) | ||||||
Equity offering costs paid | - | (928) | - | (928) | - | ||||||
Purchases of stock for tax withholding obligations on vested restricted stock | (1,467) | (6,914) | (493) | (8,381) | (4,365) | ||||||
Net cash (used in) provided by financing activities | (7,417) | (73,992) | 50,100 | (81,409) | 96,629 | ||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 330 | (216) | 147 | 114 | 259 | ||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 30,076 | (214,375) | (37,151) | (184,299) | (164,011) | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 244,282 | 458,657 | 236,903 | 458,657 | 363,763 | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period1 | $ 274,358 | $ 244,282 | $ 199,752 | $ 274,358 | $ 199,752 | ||||||
Non-cash transactions: | |||||||||||
Costs of solar power systems sourced from existing inventory | $ - | $ - | $ 4,767 | $ - | $ 21,173 | ||||||
Costs of solar power systems funded by liabilities | $ 1,716 | $ 1,184 | $ 4,529 | $ 1,716 | $ 4,529 | ||||||
Property, plant and equipment acquisitions funded by liabilities | $ 5,452 | $ 2,385 | $ 22,560 | $ 5,452 | $ 22,560 | ||||||
Contractual obligations satisfied by inventory | $ - | $ 975 | $ - | $ - | $ - | ||||||
Right-of-use assets obtained in exchange of lease obligations2 | $ 963 | $ 12,461 | $ 13,280 | $ 13,424 | $ 94,805 | ||||||
Derecognition of financing obligations upon business divestiture | $ - | $ - | $ 590,884 | $ - | $ 590,884 | ||||||
Assumption of liabilities in connection with business divestiture | $ 9,085 | $ - | $ - | $ 9,085 | $ - | ||||||
Holdbacks in connection with business divestiture | $ 7,199 | $ - | $ 2,425 | $ 7,199 | $ 2,425 | ||||||
Aged supplier financing balances reclassified from accounts payable to short-term debt | $ 18,933 | $ 5,000 | $ - | $ 23,933 | $ - | ||||||
1"Cash, cash equivalents, restricted cash and restricted cash equivalents" balance consisted of "cash and cash equivalents", "restricted cash and cash equivalents, current portion" and "restricted cash and cash equivalents, net of current portion" financial statement line items on the condensed consolidated balance sheets for the respective periods. | |||||||||||
2Amounts for the six months ended June 30, 2019 include the transition adjustment for the adoption of ASC 842 and new Right-of-Use ("ROU") asset additions. |
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 legacy utility and power plant projects and construction revenue on solar service contracts, each of which is described below. In addition to the above adjustments, non-GAAP gross margin includes adjustments relating to legacy sale-leaseback transactions, business process improvement costs, gain/loss on sale and impairment of residential lease assets, cost of above-market polysilicon, litigation, stock-based compensation, amortization of intangible assets, and business reorganization costs, 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 divestiture, impairment of property, plant, and equipment, transaction-related costs, non-cash interest expense, restructuring charges (credits), gain on convertible debt repurchased, 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 consolidated subsidiary of Total SE, our controlling shareholder and 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 Total 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 CORPORATION | ||||||||||
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||
(In thousands, except percentages and per share data) | ||||||||||
(Unaudited) | ||||||||||
Adjustments to Revenue: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
GAAP revenue | $ 352,914 | $ 449,190 | $ 436,281 | $ 802,104 | $ 784,506 | |||||
Adjustments based on IFRS: | ||||||||||
Legacy utility and power plant projects | - | (207) | (23) | (207) | (194) | |||||
Other adjustments: | ||||||||||
Construction revenue on solar services contracts | - | 5,392 | 45,614 | 5,392 | 109,119 | |||||
Non-GAAP revenue | $ 352,914 | $ 454,375 | $ 481,872 | $ 807,289 | $ 893,431 | |||||
Adjustments to Gross Profit (Loss) / Margin: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
GAAP gross profit (loss) | $ 21,598 | $ 37,448 | $ 19,800 | $ 59,046 | $ (17,485) | |||||
Adjustments based on IFRS: | ||||||||||
Legacy utility and power plant projects | - | (34) | 884 | (34) | 1,000 | |||||
Legacy sale-leaseback transactions | - | 20 | (3,684) | 20 | (4,507) | |||||
Other adjustments: | ||||||||||
Business process improvement costs | 793 | 2,464 | - | 3,257 | - | |||||
Construction revenue on solar service contracts | - | 4,735 | 5,506 | 4,735 | 16,892 | |||||
Gain on sale and impairment of residential lease assets | (458) | (448) | (632) | (906) | (757) | |||||
Cost of above-market polysilicon | 9,569 | 10,043 | 25,950 | 19,612 | 75,378 | |||||
Litigation | - | (163) | - | (163) | - | |||||
Stock-based compensation expense | 1,175 | 1,109 | 1,133 | 2,284 | 1,301 | |||||
Amortization of intangible assets | 1,783 | 1,785 | 1,783 | 3,568 | 3,569 | |||||
Business reorganization costs | (7) | 5 | - | (2) | - | |||||
Non-GAAP gross profit | $ 34,453 | $ 56,964 | $ 50,740 | $ 91,417 | $ 75,391 | |||||
GAAP gross margin (%) | 6.1% | 8.3% | 4.5% | 7.4% | -2.2% | |||||
Non-GAAP gross margin (%) | 9.8% | 12.5% | 10.5% | 11.3% | 8.4% | |||||
Adjustments to Net income (loss): | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
GAAP net income (loss) attributable to stockholders | $ 19,378 | $ (1,431) | $ 121,459 | $ 17,947 | $ 31,735 | |||||
Adjustments based on IFRS: | ||||||||||
Legacy utility and power plant projects | - | (34) | 884 | (34) | 1,000 | |||||
Legacy sale-leaseback transactions | - | 20 | 1,025 | 20 | 5,936 | |||||
Mark-to-market gain on equity investments | (71,060) | (47,871) | (67,500) | (118,931) | (100,500) | |||||
Other adjustments: | ||||||||||
Business process improvements costs | 793 | 2,464 | - | 3,257 | - | |||||
Construction revenue on solar services contracts | - | 4,735 | (6,398) | 4,735 | (10,138) | |||||
(Gain) loss on sale and impairment of residential lease assets | (317) | (722) | 15,554 | (1,039) | 23,867 | |||||
Cost of above-market polysilicon | 9,569 | 10,043 | 25,950 | 19,612 | 75,378 | |||||
Litigation | - | 321 | - | 321 | - | |||||
Stock-based compensation expense | 5,879 | 6,867 | 6,270 | 12,746 | 11,936 | |||||
Amortization of intangible assets | 1,784 | 1,786 | 1,783 | 3,570 | 3,569 | |||||
Gain on business divestiture | (10,529) | - | (137,286) | (10,529) | (143,400) | |||||
Transaction-related costs | 2,382 | 481 | 1,173 | 2,863 | 2,595 | |||||
Business reorganization costs | 2,861 | 6,193 | 4,156 | 9,054 | 6,805 | |||||
Non-cash interest expense | - | - | 10 | - | 20 | |||||
Restructuring charges | 1,259 | 1,576 | 2,453 | 2,835 | 1,788 | |||||
Gain on convertible debt repurchased | - | (2,956) | - | (2,956) | - | |||||
Tax effect | 822 | 1,247 | (669) | 2,068 | 849 | |||||
Non-GAAP net loss attributable to stockholders | $ (37,179) | $ (17,281) | $ (31,136) | $ (54,461) | $ (88,560) | |||||
Adjustments to Net income (loss) per diluted share: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
Net income (loss) per diluted share | ||||||||||
Numerator: | ||||||||||
GAAP net income (loss) available to common stockholders1 | $ 19,378 | $ (1,431) | $ 121,459 | $ 17,947 | $ 31,735 | |||||
Add: Interest expense on 4.00% debenture due 2023, net of tax | - | - | 3,358 | - | - | |||||
Add: Interest expense on 0.875% debenture due 2021, net of tax | 535 | - | 691 | - | - | |||||
GAAP net income (loss) available to common stockholders1 | 19,913 | (1,431) | 125,508 | 17,947 | $ 31,735 | |||||
Non-GAAP net loss available to common stockholders1 | $ (37,179) | $ (17,281) | $ (31,136) | $ (54,461) | $ (88,560) | |||||
Denominator: | ||||||||||
GAAP weighted-average shares | 170,003 | 168,822 | 142,471 | 169,413 | 142,095 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 1,765 | - | 2,241 | 1,558 | 967 | |||||
0.875% debentures due 2021 | 6,350 | - | 8,203 | - | - | |||||
4.00% debentures due 2023 | - | - | 13,922 | - | - | |||||
GAAP dilutive weighted-average common shares: | 178,118 | 168,822 | 166,837 | 170,971 | 143,062 | |||||
Non-GAAP weighted-average shares | 170,003 | 168,822 | 142,471 | 169,413 | 142,095 | |||||
Effect of dilutive securities: | ||||||||||
Non-GAAP dilutive weighted-average shares1 | 170,003 | 168,822 | 142,471 | 169,413 | 142,095 | |||||
GAAP net income (loss) per diluted share | $ 0.11 | $ (0.01) | $ 0.75 | $ 0.10 | $ 0.22 | |||||
Non-GAAP net loss per diluted share | $ (0.22) | $ (0.10) | $ (0.22) | $ (0.32) | $ (0.62) | |||||
1In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.875% and 4.0% debentures if the debentures are considered converted in the calculation of net income (loss) 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 | SIX MONTHS ENDED | |||||||||
Jun. 28, | Mar. 29, | Jun. 30, | Jun. 28, | Jun. 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
GAAP net income (loss) attributable to stockholders | $ 19,378 | $ (1,431) | $ 121,459 | $ 17,947 | $ 31,735 | |||||
Adjustments based on IFRS: | ||||||||||
Legacy utility and power plant projects | - | (34) | 884 | (34) | 1,000 | |||||
Legacy sale-leaseback transactions | - | 20 | 1,025 | 20 | 5,936 | |||||
Mark-to-market gain on equity investment | (71,060) | (47,871) | (67,500) | (118,931) | (100,500) | |||||
Other adjustments: | ||||||||||
Business process improvement costs | 793 | 2,464 | - | 3,257 | - | |||||
Construction revenue on solar services contracts | - | 4,735 | (6,398) | 4,735 | (10,138) | |||||
(Gain) loss on sale and impairment of residential lease assets | (317) | (722) | 15,554 | (1,039) | 23,867 | |||||
Cost of above-market polysilicon | 9,569 | 10,043 | 25,950 | 19,612 | 75,378 | |||||
Litigation | - | 321 | - | 321 | - | |||||
Stock-based compensation expense | 5,879 | 6,867 | 6,270 | 12,746 | 11,936 | |||||
Amortization of intangible assets | 1,784 | 1,786 | 1,783 | 3,570 | 3,569 | |||||
Gain on business divestiture | (10,529) | - | (137,286) | (10,529) | (143,400) | |||||
Transaction-related costs | 2,382 | 481 | 1,173 | 2,863 | 2,595 | |||||
Business reorganization costs | 2,861 | 6,193 | 4,156 | 9,054 | 6,805 | |||||
Non-cash interest expense | - | - | 10 | - | 20 | |||||
Restructuring charges (credits) | 1,259 | 1,576 | 2,453 | 2,835 | 1,788 | |||||
Gain on convertible debt repurchased | - | (2,956) | - | (2,956) | - | |||||
Cash interest expense, net of interest income | 10,030 | 10,133 | 11,148 | 20,163 | 21,354 | |||||
Provision for income taxes | 3,068 | 1,868 | 6,068 | 4,936 | 11,865 | |||||
Depreciation | 15,954 | 15,896 | 21,286 | 31,851 | 40,467 | |||||
Adjusted EBITDA | $ (8,949) | $ 9,369 | $ 8,035 | $ 421 | $ (15,723) |
Q3 2020 GUIDANCE | |
(in thousands except percentages) | Q3 2020 |
Revenue (GAAP and non-GAAP) | $360,000-$400,000 |
Gross margin (GAAP) | 0% - 5% |
Gross margin (non-GAAP)1 | 0% - 6% |
Net loss (GAAP) | $(110,000)-$(95,000) |
Adjusted EBITDA2 | $(35,000)-$(20,000) |
SUPPLEMENTAL DATA(In thousands, except percentages)
The following supplemental data represent the adjustments that are included or excluded from SunPower's non-GAAP revenue, gross profit/margin, net income (loss) and net income (loss) per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.
SUNPOWER CORPORATION | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||||||||||||||||
June 28, 2020 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Provision for income taxes | Net income (loss) attributable to stockholders | ||||||||||||||||||||||||||||||||
SunPower Energy Services | SunPower Technologies | Intersegment eliminations | SunPower Energy Services | SunPower Technologies | Intersegment eliminations | Research and development | Sales, general and administrative | Restructuring charges | (Gain)/loss on sale and impairment of residential lease assets | Gain on business divestiture | |||||||||||||||||||||||||||
GAAP | $ 217,885 | $ 170,435 | $ (35,406) | $ 38,627 | 17.7% | $ (16,426) | -9.6% | $ (603) | $ 19,378 | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (71,060) | - | (71,060) | |||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Business process improvement costs | - | - | - | (123) | 916 | - | - | - | - | - | - | - | - | 793 | |||||||||||||||||||||||
(Gain)/loss on sale and impairment of residential lease assets | - | - | - | (458) | - | - | - | - | - | 141 | - | - | - | (317) | |||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 8,338 | 1,231 | - | - | - | - | - | - | - | 9,569 | |||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 471 | 704 | - | 631 | 4,073 | - | - | - | - | - | 5,879 | |||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 1,783 | - | 1 | - | - | - | - | - | - | 1,784 | |||||||||||||||||||||||
Gain on business divestiture | - | - | - | - | - | - | - | - | - | - | (10,458) | (71) | - | (10,529) | |||||||||||||||||||||||
Business reorganization costs | - | - | - | 9 | (16) | - | 182 | 2,686 | - | - | - | - | - | 2,861 | |||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 2,382 | - | - | - | - | - | 2,382 | |||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 1,259 | - | - | - | - | 1,259 | |||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 822 | 822 | |||||||||||||||||||||||
Non-GAAP | $ 217,885 | $ 170,435 | $ (35,406) | $ 38,526 | 17.7% | $ (4,701) | -2.8% | $ 628 | $ (37,179) | ||||||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||||||||
March 29, 2020 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Provision for income taxes | Net income (loss) attributable to stockholders | ||||||||||||||||||||||||||||||||
SunPower Energy Services | SunPower Technologies | Intersegment eliminations | SunPower Energy Services | SunPower Technologies | Intersegment eliminations | Research and development | Sales, general and administrative | Restructuring charges | (Gain)/loss on sale and impairment of residential lease assets | Gain on business divestiture | |||||||||||||||||||||||||||
GAAP | $ 289,869 | $ 248,196 | $ (88,875) | $ 30,408 | 10.5% | $ (8,933) | -3.6% | $ 15,973 | $ (1,431) | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | - | (207) | - | - | (34) | - | - | - | - | - | - | - | - | (34) | |||||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | 20 | - | - | - | - | - | - | - | - | - | 20 | |||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (47,871) | - | (47,871) | |||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
Business process improvement costs | - | - | - | - | 2,464 | - | - | - | - | - | - | - | - | 2,464 | |||||||||||||||||||||||
(Gain)/loss on sale and impairment of residential lease assets | - | - | - | (448) | - | - | - | - | - | (274) | - | - | - | (722) | |||||||||||||||||||||||
Construction revenue on solar services contracts | 5,392 | - | - | 4,735 | - | - | - | - | - | - | - | - | - | 4,735 | |||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 17,253 | (7,210) | - | - | - | - | - | - | - | 10,043 | |||||||||||||||||||||||
Litigation | - | - | - | - | (163) | - | - | 485 | - | - | - | - | - | 321 | |||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 559 | 551 | - | 760 | 4,997 | - | - | - | - | - | 6,867 | |||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 1,785 | - | - | - | - | - | - | - | - | 1,785 | |||||||||||||||||||||||
Business reorganization costs | - | - | - | - | 5 | - | 513 | 5,676 | - | - | - | - | - | 6,194 | |||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 481 | - | - | - | - | - | 481 | |||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 1,576 | - | - | - | - | 1,576 | |||||||||||||||||||||||
Gain on convertible debt repurchased | - | - | - | - | - | - | - | - | - | - | - | (2,956) | - | (2,956) | |||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 1,247 | 1,247 | |||||||||||||||||||||||
Non-GAAP | $ 295,261 | $ 247,989 | $ (88,875) | $ 35,274 | 11.9% | $ 12,927 | 5.2% | $ 8,763 | $ (17,281) | ||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Provision for income taxes | Gain (Loss) attributable to non-controlling interests | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||||
SunPower Energy Services | SunPower Technologies | Intersegment eliminations | SunPower Energy Services | SunPower Technologies | Intersegment eliminations | Research and development | Sales, general and administrative | Restructuring charges | Loss on sale and impairment of residential lease assets | Gain on business divestiture | |||||||||||||||||||||||||||
GAAP | $ 211,726 | $ 314,971 | $ (90,416) | $ 22,464 | 10.6% | $ (2,746) | -0.9% | $ 82 | $ 121,459 | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | - | (23) | - | - | 884 | - | - | - | - | - | - | - | - | - | 884 | ||||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | (3,684) | - | - | - | - | - | - | - | 4,709 | - | - | 1,025 | ||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (67,500) | - | - | (67,500) | ||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||||
(Gain)/loss on sale and impairment of residential lease assets | - | - | - | (632) | - | - | - | - | - | 16,728 | - | - | - | (542) | 15,554 | ||||||||||||||||||||||
Construction revenue on solar services contracts | 45,614 | - | - | 5,506 | - | - | - | - | - | - | - | - | - | (11,904) | (6,398) | ||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 23,875 | 2,075 | - | - | - | - | - | - | - | - | 25,950 | ||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 460 | 673 | - | 879 | 4,258 | - | - | - | - | - | - | 6,270 | ||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 1,783 | - | - | - | - | - | - | - | - | - | 1,783 | ||||||||||||||||||||||
Gain on business divestiture | - | - | - | - | - | - | - | - | - | - | (137,286) | - | - | - | (137,286) | ||||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | 777 | 3,379 | - | - | - | - | - | - | 4,156 | ||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 1,173 | - | - | - | - | - | - | 1,173 | ||||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 10 | - | - | - | - | - | - | 10 | ||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 2,453 | - | - | - | - | - | 2,453 | ||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | (669) | - | (669) | ||||||||||||||||||||||
Non-GAAP | $ 257,340 | $ 314,948 | $ (90,416) | $ 24,114 | 9.4% | $ 24,469 | 7.8% | $ 2,157 | $ (31,136) | ||||||||||||||||||||||||||||
SIX MONTHS ENDED | |||||||||||||||||||||||||||||||||||||
June 28, 2020 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Provision for income taxes | Net income (loss) attributable to stockholders | ||||||||||||||||||||||||||||||||
SunPower Energy Services | SunPower Technologies | Intersegment eliminations | SunPower Energy Services | SunPower Technologies | Intersegment eliminations | Research and development | Sales, general and administrative | Restructuring charges | (Gain)/loss on sale and impairment of residential lease assets | Gain on business divestiture | |||||||||||||||||||||||||||
GAAP | $ 507,754 | $ 418,631 | $ (124,281) | $ 69,034 | 13.6% | $ (25,359) | 20.4% | $ 15,370 | $ 17,947 | ||||||||||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
8point3 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Legacy utility and power plant projects | - | (207) | - | - | (34) | - | - | - | - | - | - | - | - | (34) | |||||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | 20 | - | - | - | - | - | - | - | - | - | 20 | |||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (118,931) | - | (118,931) | |||||||||||||||||||||||
Other adjustments: | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Business process improvement costs | - | - | - | (123) | 3,380 | - | - | - | - | - | - | - | - | 3,257 | |||||||||||||||||||||||
(Gain)/loss on sale and impairment of residential lease assets | - | - | - | (906) | - | - | - | - | - | (133) | - | - | - | (1,039) | |||||||||||||||||||||||
Construction revenue on solar services contracts | 5,392 | - | - | 4,735 | - | - | - | - | - | - | - | - | - | 4,735 | |||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 25,591 | (5,979) | - | - | - | - | - | - | - | 19,612 | |||||||||||||||||||||||
Litigation | - | - | - | - | (163) | - | - | 485 | - | - | - | - | - | 321 | |||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 1,030 | 1,255 | - | 1,391 | 9,070 | - | - | - | - | - | 12,746 | |||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 3,568 | - | - | - | - | - | - | - | - | 3,568 | |||||||||||||||||||||||
Gain on business divestiture | - | - | - | - | - | - | - | - | - | - | (10,458) | (71) | - | (10,529) | |||||||||||||||||||||||
Business reorganization costs | - | - | - | 9 | (12) | - | 695 | 8,362 | - | - | - | - | - | 9,055 | |||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 2,863 | - | - | - | - | - | 2,863 | |||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 2,835 | - | - | - | - | 2,835 | |||||||||||||||||||||||
Gain on convertible debt repurchased | - | - | - | - | - | - | - | - | - | - | - | (2,956) | - | (2,956) | |||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 2,069 | 2,069 | |||||||||||||||||||||||
Non-GAAP | $ 513,146 | $ 418,424 | $ (124,281) | $ 73,799 | 14.4% | $ 8,226 | 2.0% | $ 9,391 | $ (54,461) | ||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Provision for income taxes | Gain (Loss) attributable to non-controlling interests | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||||
SunPower Energy Services | SunPower Technologies | Intersegment eliminations | SunPower Energy Services | SunPower Technologies | Intersegment eliminations | Research and development | Sales, general and administrative | Restructuring charges | (Gain)/loss on sale and impairment of residential lease assets | Gain on business divestiture | |||||||||||||||||||||||||||
GAAP | $ 389,947 | $ 545,775 | $ (151,216) | $ 29,607 | 7.6% | $ (54,810) | -10.0% | $ 7,718 | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 31,735 | ||||||||||||||||||||
Adjustments based on IFRS: | |||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | - | (194) | - | 125 | 875 | - | - | - | - | - | - | - | - | - | 1,000 | ||||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | (4,508) | 1 | - | - | - | - | - | - | 10,443 | - | - | 5,936 | ||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (100,500) | - | - | (100,500) | ||||||||||||||||||||||
Other adjustments: | - | ||||||||||||||||||||||||||||||||||||
(Gain)/loss on sale and impairment of residential lease assets | - | - | - | (757) | - | - | - | - | - | 25,954 | - | - | - | (1,330) | 23,867 | ||||||||||||||||||||||
Construction revenue on solar services contracts | 109,119 | - | - | 16,892 | - | - | - | - | - | - | - | - | - | (27,030) | (10,138) | ||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 73,303 | 2,075 | - | - | - | - | - | - | - | - | 75,378 | ||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 628 | 673 | - | 1,472 | 9,163 | - | - | - | - | - | - | 11,936 | ||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 3,569 | - | - | - | - | - | - | - | - | - | 3,569 | ||||||||||||||||||||||
Gain on business divestiture | - | - | - | - | - | - | - | - | - | - | (143,400) | - | - | - | (143,400) | ||||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | 777 | 6,028 | - | - | - | - | - | - | 6,805 | ||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 2,595 | - | - | - | - | - | - | 2,595 | ||||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 20 | - | - | - | - | - | - | 20 | ||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 1,788 | - | - | - | - | - | 1,788 | ||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 849 | - | 849 | ||||||||||||||||||||||
Non-GAAP | $ 499,066 | $ 545,581 | $ (151,216) | $ 41,987 | 8.4% | $ 23,611 | 4.3% | $ 9,793 | $ (88,560) |
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SOURCE SunPower Corp.