SAN JOSE, Calif., Feb. 12, 2020 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR) today announced financial results for its fourth quarter ended Dec. 29, 2019.
Fourth Quarter Company Highlights
SunPower Energy Services (SPES)
SunPower Technologies (SPT)
($ Millions, except percentages and per-share data) | 4th Quarter 2019 | 3rd Quarter2019 | 4th Quarter 2018 | Fiscal Year2019 | Fiscal Year 2018 |
GAAP revenue | $603.8 | $476.0 | $456.8 | $1,864.2 | $1,726.1 |
GAAP gross margin | 15.8% | 10.1% | (1.7%) | 6.8% | (17.2%) |
GAAP net income (loss) | $5.4 | $(15.0) | $(158.2) | $22.2 | $(811.1) |
GAAP net income (loss) per diluted share | $0.03 | $(0.11) | $(1.12) | $0.15 | $(5.76) |
Non-GAAP revenue1 | $607.0 | $491.7 | $525.4 | $1,992.1 | $1,814.9 |
Non-GAAP gross margin1 | 20.8% | 15.9% | 6.9% | 14.0% | 7.5% |
Non-GAAP net income (loss)1 | $35.8 | $10.6 | $(30.3) | $(42.2) | $(101.4) |
Non-GAAP net income (loss) per diluted share1 | $0.23 | $0.07 | $(0.21) | $(0.29) | $(0.72) |
Adjusted EBITDA1 | $71.5 | $42.0 | $13.6 | $97.8 | $111.2 |
MW Recognized | 707 | 586 | 461 | 2,455 | 1,355 |
Cash2 | $423.0 | $189.0 | $309.4 | $423.0 | $309.4 |
1 | Information 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. |
2 | Includes cash, and cash equivalents, excluding restricted cash |
Fourth Quarter 2019 Results
"Overall, we exited the year with solid fourth quarter financial performance despite execution challenges in our commercial direct business," said Tom Werner, SunPower CEO and chairman of the board. "We also achieved a number of important strategic milestones during the quarter. These included the announcement of our proposed Maxeon Solar spin-off and planned equity investment from TZS, initial installations of our residential Equinox Storage system, as well as a successful capital raise and partial convertible bond retirement to further strengthen our balance sheet."
SunPower Energy Services (SPES)
"The strategic decision to combine our residential and commercial dealer operations into a combined channels business is paying dividends as we posted strong financial results for this unit in the fourth quarter. Our residential business achieved record revenue and installation volume, and in new homes, we remain the market leader as we grew this business by more than 50 percent last year and exited 2019 with a backlog of 45,000 homes. We expect new homes volume growth to exceed 50 percent in 2020 as we leverage the current California new home solar mandate. Finally, we remain very excited about the launch of our Equinox Storage product as we added to our beta installations in the fourth quarter and see strong demand for Equinox Storage in 2020.
"In Commercial Direct, we maintained our market share lead and increased installation volume year over year. Our origination teams once again performed well, but deployment execution remained challenged. As a result of this underperformance, we have taken a number of steps to improve results including changes to our reporting structure, instituting new processes to streamline permitting and regulatory requirements and actions to improve installation execution. We now expect our commercial direct business to return to profitability in the second half of this year. Demand for our Helix Storage solution remains strong as evidenced by our plan to add 20 megawatt hours (MWh) of storage to the Chevron Lost Hills solar project, our largest commercial storage award to date. Additionally, our storage pipeline continues to expand, now exceeding 175-MW with attach rates of 35 percent.
SunPower Technologies (SPT)
"SPT posted a very strong quarter, beating our financial targets across the board including volume, revenue, margin, EBITDA, and cash flow. Growth was driven primarily by demand in the global DG markets, with DG volume up over 95 percent year-over-year. For the full year 2019, DG shipments grew approximately 75 percent. During the fourth quarter, we completed commercialization of our Maxeon 5 technology, ramping our first line-pair to full production. Customer demand for this product is strong, and the technology is ready for accelerated ramp consistent with the planned $298 million equity investment from TZS. Demand for our Performance Series (P-Series) product also remains high, comprising approximately half of our fourth quarter and full year 2019 shipment volume.
"Finally, we were pleased to announce the strategic decision to separate into two independent, complementary, strategically-aligned and publicly-traded companies: SunPower and Maxeon Solar. This separation will enable each company to focus on distinct offerings built on extensive experience across the solar value chain while, we believe, unlocking long-term shareholder value. We remain on track to complete the separation in the second quarter of fiscal 2020, subject to closing conditions," Werner concluded.
Consolidated Financials
"Our solid fourth quarter performance reflects the results of our focus on the DG market and increased operational discipline," said Manavendra Sial, SunPower chief financial officer. "In relation to the balance sheet, we increased our liquidity as we generated positive cash at the business unit level, completed a successful capital raise and retired more than $30 million of convertible debt in the first quarter of 2020. We also continued to prudently manage our expenses while meeting our cost reduction targets. We remain committed to achieving positive cash flow this year while continuing to improve our profitability throughout 2020."
Fourth quarter fiscal year 2019 non-GAAP results exclude net adjustments that, in the aggregate, increased non-GAAP earnings by $30.4 million, including $27.5 million related to the cost of above-market polysilicon, $18.7 million related to business reorganization costs and restructuring charges, $8.0 million related to stock-based compensation expense, $1.8 million related to amortization of intangible assets, and $2.6 million related to other non-recurring items, partially offset by $28.2 million related to mark-to-market gain on equity investments, and tax effect of these items.
Financial Outlook
The company's first quarter 2020 GAAP and non-GAAP guidance is as follows: on a GAAP basis, revenue of $435 million to $470 million, gross margin of 3 percent to 6 percent and net loss of $85 million to $70 million. On a non-GAAP basis, the company expects revenue of $435 million to $470 million, gross margin of 9 percent to 12 percent, Adjusted EBITDA of ($15) million to $0 million and MW deployed in the range of 520 MW to 570 MW.
The company's fiscal year 2020 GAAP and non-GAAP guidance is as follows: on a GAAP basis, revenue of $2.1 billion to $2.3 billion and a net loss of $195 million to $145 million. On a non-GAAP basis, revenue of $2.1 billion to $2.3 billion and operational expenses of less than $260 million. Gigawatts recognized is expected to be in the range of 2.5 GW to 2.75 GW and capital expenditures of approximately $100 million.
As a result of the restructuring of its commercial direct business, the company expects fiscal year 2020 Adjusted EBITDA guidance in the range of $125 million to $175 million.
The company will host a conference call for investors this afternoon to discuss its fourth quarter and fiscal year 2019 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 fourth quarter and fiscal year 2019 performance on the Events and Presentations section of SunPower's Investor Relations page at http://investors.sunpower.com/events.cfm.
About SunPower
As one of the world's most innovative and sustainable energy companies, SunPower Corporation (NASDAQ:SPWR) provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower's more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and superb performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.
Forward-Looking Statements
This 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, including timing and certainty, the associated benefits and costs to the newly separated companies, and the equity investment by TZS into Maxeon Solar and the use of proceeds from such investment; (b) our plans and expectations regarding expansion of Maxeon 5 production; (c) our expectations regarding business restructuring and anticipated impact on financial performance; (d) our expectations and plans regarding market traction, growth, demand, and volume; (e) our plans and expectations for our products and planned products, including anticipated markets and demand, cost impacts, and impacts on our financial performance and our ability to meet our targets and goals; (f) our plans and expectations for initiatives to improve execution and performance in our Commercial Direct business, including timing and anticipated impact on financial performance and the anticipated timing of returning to profitability; (g) our plans and expectations regarding manufacturing expansion, and production goals and ramps, including the timing of our Maxeon 5 and P-Series production expansion; (h) our expectations regarding 2020 financial performance, including plans to achieve positive cash flow and improve profitability; (i) our first quarter fiscal 2020 guidance, including GAAP revenue, gross margin, and net income/(loss), as well as non-GAAP revenue, gross margin, Adjusted EBITDA, and MW deployed, and related assumptions; and (j) fiscal year 2020 guidance, including, GAAP and non-GAAP revenue, net income/(loss), non-GAAP operational expenses, non-GAAP GW deployed, non- GAAP capital expenditures, and Adjusted EBITDA, 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) challenges in executing transactions key to our strategic plans, including regulatory and other challenges that may arise; (2) 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; (3) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (4) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (5) changes in public policy, including the imposition and applicability of tariffs; (6) regulatory changes and the availability of economic incentives promoting use of solar energy; (7) fluctuations in our operating results; (8) potential disruptions to our operation and supply chain that may result from epidemics or natural disasters; (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 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.
©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) | |||
Dec. 29, | Dec. 30, | ||
2019 | 2018 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 422,955 | $ 309,407 | |
Restricted cash and cash equivalents, current portion | 26,348 | 41,762 | |
Restricted short-term marketable securities | 6,187 | - | |
Accounts receivable, net | 226,476 | 175,605 | |
Contract assets | 99,426 | 58,994 | |
Inventories | 358,257 | 308,146 | |
Advances to suppliers, current portion | 107,388 | 37,878 | |
Project assets - plants and land, current portion | 12,650 | 10,796 | |
Prepaid expenses and other current assets | 121,244 | 131,183 | |
Total current assets | 1,380,931 | 1,073,771 | |
Restricted cash and cash equivalents, net of current portion | 9,354 | 12,594 | |
Restricted long-term marketable securities | - | 5,955 | |
Property, plant and equipment, net | 323,726 | 839,871 | |
Operating lease right-of-use assets | 51,258 | - | |
Solar power systems leased and to be leased, net | 54,338 | 92,557 | |
Advances to suppliers, net of current portion | 13,993 | 133,694 | |
Long-term financing receivables, net - held for sale | - | 19,592 | |
Other intangible assets, net | 7,466 | 12,582 | |
Other long-term assets | 330,855 | 162,033 | |
Total assets | $ 2,171,921 | $ 2,352,649 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 441,759 | $ 325,550 | |
Accrued liabilities | 203,890 | 235,252 | |
Operating lease liabilities, current portion | 9,463 | - | |
Contract liabilities, current portion | 138,441 | 104,130 | |
Short-term debt | 104,856 | 40,074 | |
Total current liabilities | 898,409 | 705,006 | |
Long-term debt | 113,827 | 40,528 | |
Convertible debt | 820,259 | 818,356 | |
Operating lease liabilities, net of current portion | 46,089 | - | |
Contract liabilities, net of current portion | 67,538 | 99,509 | |
Other long-term liabilities | 204,300 | 839,136 | |
Total liabilities | 2,150,422 | 2,502,535 | |
Equity: | |||
Preferred stock | - | - | |
Common stock | 168 | 141 | |
Additional paid-in capital | 2,661,819 | 2,463,370 | |
Accumulated deficit | (2,449,679) | (2,480,988) | |
Accumulated other comprehensive loss | (9,512) | (4,150) | |
Treasury stock, at cost | (192,633) | (187,069) | |
Total stockholders' deficit | 10,163 | (208,696) | |
Noncontrolling interests in subsidiaries | 11,336 | 58,810 | |
Total deficit | 21,499 | (149,886) | |
Total liabilities and equity | $ 2,171,921 | $ 2,352,649 |
SUNPOWER CORPORATION | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
Revenue: | ||||||||||
SunPower Energy Services | $ 352,226 | $ 277,688 | $ 265,427 | $ 1,019,861 | $ 1,045,614 | |||||
SunPower Technologies | 434,708 | 333,896 | 277,256 | 1,314,379 | 1,069,010 | |||||
Intersegment eliminations | (183,173) | (135,626) | (85,846) | (470,015) | (388,539) | |||||
Total revenue | 603,761 | 475,958 | 456,837 | 1,864,225 | 1,726,085 | |||||
Cost of revenue: | ||||||||||
SunPower Energy Services | 306,698 | 248,417 | 245,301 | 915,455 | 889,410 | |||||
SunPower Technologies | 369,363 | 315,293 | 296,872 | 1,285,241 | 1,496,909 | |||||
Intersegment eliminations | (167,439) | (136,003) | (77,765) | (462,376) | (363,153) | |||||
Total cost of revenue | 508,622 | 427,707 | 464,408 | 1,738,320 | 2,023,166 | |||||
Gross profit (loss) | 95,139 | 48,251 | (7,571) | 125,905 | (297,081) | |||||
Operating expenses: | ||||||||||
Research and development | 18,262 | 16,101 | 15,481 | 67,515 | 81,705 | |||||
Sales, general and administrative | 70,875 | 64,734 | 53,839 | 260,443 | 260,111 | |||||
Restructuring charges | 8,039 | 4,283 | (1,107) | 14,110 | 17,497 | |||||
Loss on sale and impairment of residential lease assets | (2,931) | 10,756 | 81,086 | 25,352 | 251,984 | |||||
Gain on business divestiture | - | - | - | (143,400) | (59,347) | |||||
Total operating expenses | 94,245 | 95,874 | 149,299 | 224,020 | 551,950 | |||||
Operating income (loss) | 894 | (47,623) | (156,870) | (98,115) | (849,031) | |||||
Other income (expense), net: | ||||||||||
Interest income | 259 | 1,025 | 777 | 2,702 | 3,057 | |||||
Interest expense | (9,489) | (10,649) | (30,214) | (53,353) | (108,011) | |||||
Other, net | 28,709 | 45,184 | 6,539 | 174,734 | 55,314 | |||||
Other income (expense), net | 19,479 | 35,560 | (22,898) | 124,083 | (49,640) | |||||
Income (loss) before income taxes and equity in losses of unconsolidated investees | 20,373 | (12,063) | (179,768) | 25,968 | (898,671) | |||||
(Provision) benefit for income taxes | (9,388) | (5,378) | 8,379 | (26,631) | (1,010) | |||||
Equity in losses of unconsolidated investees | (5,008) | (1,767) | (757) | (7,058) | (17,815) | |||||
Net income (loss) | 5,977 | (19,208) | (172,146) | (7,721) | (917,496) | |||||
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | (537) | 4,191 | 13,972 | 29,880 | 106,405 | |||||
Net income (loss) attributable to stockholders | $ 5,440 | $ (15,017) | $ (158,174) | $ 22,159 | $ (811,091) | |||||
Basic net income (loss) per share attributable to stockholders | $ 0.04 | $ (0.11) | $ (1.12) | $ 0.15 | $ (5.76) | |||||
Diluted net income (loss) per share attributable to stockholders | $ 0.03 | $ (0.11) | $ (1.12) | $ 0.15 | $ (5.76) | |||||
Basic weighted-average shares | 152,439 | 142,553 | 141,136 | 144,796 | 140,825 | |||||
Diluted weighted-average shares | 156,004 | 142,553 | 141,136 | 147,525 | 140,825 |
SUNPOWER CORPORATION | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ 5,977 | $ (19,208) | $ (172,146) | $ (7,721) | $ (917,496) | |||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||
Depreciation and amortization | 18,059 | 15,298 | 24,060 | 80,081 | 127,204 | |||||
Stock-based compensation | 8,008 | 6,991 | 6,266 | 26,935 | 26,353 | |||||
Non-cash interest expense | 2,005 | 2,542 | 3,213 | 9,472 | 15,346 | |||||
Non-cash restructuring charges | - | 3,528 | - | 5,874 | - | |||||
Dividend from equity method investee | - | - | - | - | 3,947 | |||||
Equity in losses of unconsolidated investees | 5,008 | 1,767 | 756 | 7,058 | 17,815 | |||||
Mark-to-market (gain) loss on equity investment with readily determinable fair value | (29,250) | (28,538) | 150 | (158,288) | 6,375 | |||||
Gain on business divestiture | - | - | - | (143,400) | (59,347) | |||||
Gain on sale of investments without readily determinable fair value | - | (17,275) | (3,628) | (17,275) | (54,196) | |||||
Deferred income taxes | 4,567 | (1,545) | (9,868) | 5,067 | (6,862) | |||||
Impairment of equity method investment | - | - | - | - | - | |||||
Impairment of property, plant and equipment | - | - | - | 777 | 369,168 | |||||
(Gain) Loss on sale and impairment of residential lease assets | (2,931) | 10,755 | 81,086 | 33,778 | 251,984 | |||||
Gain on sale of assets | (3,829) | (21,383) | - | (25,212) | - | |||||
Other, net | - | - | (1,059) | - | (6,796) | |||||
Accounts receivable | (20,484) | 2,921 | 18,916 | (66,194) | (175) | |||||
Contract assets | (20,139) | (25,516) | (5,495) | (38,246) | (43,509) | |||||
Inventories | (20,311) | (45,989) | 64,617 | (128,404) | (39,174) | |||||
Project assets | 7,050 | (3,040) | 48,652 | (2,188) | 39,512 | |||||
Prepaid expenses and other assets | (10,228) | 16,967 | (17,161) | (8,746) | 22,763 | |||||
Operating lease right-of-use assets | 2,311 | 14,999 | - | 8,530 | - | |||||
Long-term financing receivables, net - held for sale | - | 481 | (31,006) | (473) | (182,937) | |||||
Advances to suppliers | 16,899 | 8,518 | 15,236 | 50,191 | 44,417 | |||||
Accounts payable and other accrued liabilities | 15,384 | 52,810 | (58,230) | 79,394 | (127,286) | |||||
Contract liabilities | 19,404 | 4,709 | 9,328 | 27,531 | (30,495) | |||||
Operating lease liabilities | (1,752) | (15,865) | - | (8,954) | - | |||||
Net cash used in operating activities | (4,252) | (36,073) | (26,313) | (270,413) | (543,389) | |||||
Cash flows from investing activities: | ||||||||||
Purchases of property, plant and equipment | (12,295) | (16,896) | (7,198) | (47,395) | (44,906) | |||||
Cash paid for solar power systems, leased, net | - | - | (12,953) | - | (68,612) | |||||
Cash paid for solar power systems | (1,458) | (8,503) | (37,468) | (53,284) | (41,808) | |||||
Cash outflow from sale of residential lease portfolio, net of cash sold | - | - | - | - | - | |||||
Proceeds from sale of cost method investment | - | - | - | - | - | |||||
Cash paid for acquisitions, net of cash acquired | - | - | (17,000) | - | (17,000) | |||||
Dividend from equity method investee | - | - | - | - | 12,952 | |||||
Proceeds from sale of investments | - | 42,957 | 35,942 | 42,957 | 453,708 | |||||
Proceeds from sale of assets | 20,000 | 39,742 | - | 59,970 | - | |||||
Proceeds from business divestiture, net of cash sold | - | - | 10,000 | 40,491 | 23,257 | |||||
Proceeds from sale of distribution rights of debt refinancing | 1,950 | - | - | 1,950 | - | |||||
Cash outflow from sale of residential lease portfolio, net of cash received | 5,474 | (16,397) | (28,004) | (10,923) | (28,004) | |||||
Cash paid for investments in unconsolidated investees | - | (2,400) | (626) | (12,400) | (14,687) | |||||
Net cash provided by (used in) investing activities | 13,671 | 38,503 | (57,307) | 21,366 | 274,900 | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from bank loans and other debt | 150,439 | 87,823 | 60,199 | 381,928 | 227,676 | |||||
Repayment of 0.75% debentures due 2018, bank loans and other debt | (61,920) | (84,035) | (59,023) | (271,015) | (535,252) | |||||
Proceeds from issuance of non-recourse residential financing, net of issuance costs | - | 6,528 | 5,079 | 72,259 | 192,287 | |||||
Repayment of non-recourse residential financing | - | (1,803) | (2,427) | (2,959) | (17,358) | |||||
Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | 4,371 | 1,842 | 43,526 | 35,790 | 151,204 | |||||
Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects | - | - | (2,742) | (316) | (21,918) | |||||
Proceeds of common stock equity offering, net of offering costs | 171,834 | - | - | 171,834 | - | |||||
Proceeds from issuance of non-recourse power plant and commercial financing, net of issuance costs | 3,004 | - | 75,754 | 3,004 | 126,020 | |||||
Repayment of non-recourse power plant and commercial financing | - | - | (26,383) | - | (31,282) | |||||
Payment for prior business combination | (30,000) | - | - | (39,000) | - | |||||
Settlement of contingent consideration arrangement, net of cash received | 802 | - | - | (1,646) | - | |||||
Purchases of stock for tax withholding obligations on vested restricted stock | (908) | (292) | (281) | (5,565) | (5,530) | |||||
Net cash provided by (used in) financing activities | 237,622 | 10,063 | 93,702 | 344,314 | 85,847 | |||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 881 | (1,510) | 1,296 | (374) | 2,068 | |||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 247,922 | 10,983 | 11,378 | 94,893 | (180,574) | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 210,735 | 199,752 | 352,385 | 363,763 | 544,337 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ 458,657 | $ 210,735 | $ 363,763 | $ 458,657 | $ 363,763 | |||||
Non-cash transactions: | ||||||||||
Stock consideration received from business divestiture | $ - | $ - | $ - | $ - | $ 42,600 | |||||
Costs of solar power systems, leased, sourced from existing inventory | $ - | $ - | $ 5,975 | $ - | $ 36,384 | |||||
Costs of solar power systems, leased, funded by liabilities | $ - | $ - | $ 3,631 | $ - | $ 3,631 | |||||
Costs of solar power systems sourced from existing inventory | $ 21,173 | $ 8,033 | $ - | $ 29,206 | $ - | |||||
Costs of solar power systems funded by liabilities | $ 2,671 | $ 3,604 | $ - | $ 2,671 | $ - | |||||
Costs of solar power systems under sale-leaseback financing arrangements, sourced from project assets | $ - | $ - | $ 56,332 | $ - | $ 86,540 | |||||
Property, plant and equipment acquisitions funded by liabilities | $ 13,745 | $ 11,911 | $ 8,214 | $ 13,745 | $ 8,214 | |||||
Contractual obligations satisfied with inventory | $ - | $ - | $ 7,924 | $ - | $ 56,840 | |||||
Acquisition of noncontrolling interests funded by Mezzanine Loan proceeds | $ - | $ - | $ - | $ - | $ 12,400 | |||||
Assumption of debt by buyer upon sale of equity interest | $ - | $ - | $ - | $ - | $ 27,321 | |||||
Assumption of debt by buyer in connection with sale of residential lease assets | $ - | $ 69,076 | $ 561,588 | $ 69,076 | $ 561,588 | |||||
Acquisition funded by liabilities | $ - | $ - | $ 9,000 | $ - | $ 9,000 | |||||
Retained interest in SunStrong lease portfolio | $ - | $ - | $ 9,750 | $ - | $ 9,750 | |||||
Receivables in connection with sale of residential lease assets | $ 2,570 | $ 8,043 | $ 12,510 | $ 2,570 | $ 12,510 | |||||
Right-of-use assets obtained in exchange for lease obligations | $ 7,398 | $ 8,939 | $ - | $ 111,142 | $ - | |||||
Derecognition of financing obligations upon business divestiture | $ - | $ - | $ - | $ 590,884 | $ - | |||||
Holdback related to business divestiture | $ 1,927 | $ - | $ - | $ 1,927 | $ - | |||||
Holdback related to sale of manufacturing facility | $ - | $ 18,300 | $ - | $ - | $ - | |||||
Aged supplier financing balances reclassified from AP to short-term debt | $ 22,500 | $ 22,852 | $ - | $ 45,352 | $ - | |||||
Settlement of prior debt obligation with inventory | $ 1,701 | $ - | $ - | $ 1,701 | $ - |
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 8point3, legacy utility and power plant projects, legacy sale-leaseback transactions and construction services for residential customer contracts, each of which is described below. In addition to the above adjustments, non-GAAP gross margin includes adjustments relating to business process improvement costs, loss on sale and impairment of residential lease assets, impairment of property, plant, and equipment, cost of above-market polysilicon, litigation, stock-based compensation, amortization of intangible assets, and depreciation of idle equipment, 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) loss on equity investments, gain on business divestiture, transaction-related costs, business reorganization costs, non-cash interest expense, restructuring charges, 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 consolidated subsidiary of Total S.A., 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 S.A.
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 | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
GAAP revenue | $ 603,761 | $ 475,958 | $ 456,837 | $ 1,864,225 | $ 1,726,085 | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | - | - | (8,588) | |||||
Legacy utility and power plant projects | (44) | (65) | (691) | (303) | (4,145) | |||||
Legacy sale-leaseback transactions | - | - | 69,254 | - | 101,581 | |||||
Other adjustments: | ||||||||||
Construction revenue on solar services contracts | 3,235 | 15,790 | - | 128,144 | - | |||||
Non-GAAP revenue | $ 606,952 | $ 491,683 | $ 525,400 | $ 1,992,066 | $ 1,814,933 | |||||
Adjustments to Gross Profit (Loss) / Margin: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
GAAP gross profit (loss) | $ 95,139 | $ 48,251 | $ (7,571) | $ 125,905 | $ (297,081) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | - | - | (8,337) | |||||
Legacy utility and power plant projects | - | (7) | (569) | 993 | (1,244) | |||||
Legacy sale-leaseback transactions | (75) | (181) | 6,132 | (4,763) | 242 | |||||
Other adjustments: | ||||||||||
Business process improvement costs | 1,091 | 2,279 | - | 3,370 | - | |||||
Construction revenue on solar service contracts | 1,966 | 1,160 | - | 20,018 | - | |||||
(Gain) loss on sale and impairment of residential lease assets | (435) | (511) | (2,163) | (1,703) | (14,847) | |||||
Impairment of property, plant and equipment | - | - | - | - | 355,107 | |||||
Cost of above-market polysilicon | 27,549 | 23,878 | 37,231 | 126,805 | 87,228 | |||||
Litigation | (2,515) | - | - | (2,515) | - | |||||
Stock-based compensation expense | 1,559 | 1,522 | 1,236 | 4,382 | 4,996 | |||||
Amortization of intangible assets | 1,783 | 1,783 | 1,889 | 7,135 | 8,966 | |||||
Depreciation of idle equipment | - | - | - | - | 721 | |||||
Non-GAAP gross profit | $ 126,062 | $ 78,174 | $ 36,185 | $ 279,627 | $ 135,751 | |||||
GAAP gross margin (%) | 15.8% | 10.1% | -1.7% | 6.8% | -17.2% | |||||
Non-GAAP gross margin (%) | 20.8% | 15.9% | 6.9% | 14.0% | 7.5% | |||||
Adjustments to Net income (loss): | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
GAAP net income (loss) attributable to stockholders | $ 5,440 | $ (15,017) | $ (158,174) | $ 22,159 | $ (811,091) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | - | - | (8,485) | |||||
Legacy utility and power plant projects | - | (7) | (569) | 993 | (1,244) | |||||
Legacy sale-leaseback transactions | (75) | (181) | 10,984 | 5,680 | 18,802 | |||||
Mark-to-market (gain) loss on equity investments | (28,250) | (27,595) | 150 | (156,345) | 6,375 | |||||
Other adjustments: | ||||||||||
Business process improvements costs | 1,091 | 2,279 | - | 3,370 | - | |||||
Construction revenue on solar services contracts | 1,966 | 1,160 | - | (7,012) | - | |||||
(Gain) Loss on sale and impairment of residential lease assets | (3,366) | 5,135 | 81,273 | 25,636 | 227,507 | |||||
Impairment of property, plant and equipment | 4,053 | - | - | 4,053 | 369,168 | |||||
Cost of above-market polysilicon | 27,549 | 23,878 | 37,231 | 126,805 | 87,228 | |||||
Litigation | (2,509) | - | - | (2,509) | - | |||||
Stock-based compensation expense | 8,006 | 6,992 | 6,424 | 26,934 | 28,215 | |||||
Amortization of intangible assets | 1,783 | 1,783 | 1,889 | 7,135 | 8,966 | |||||
Depreciation of idle equipment | - | - | - | - | 721 | |||||
Gain on business divestiture | - | - | - | (143,400) | (59,347) | |||||
Transaction-related costs | 1,723 | 976 | (3,142) | 5,294 | 17,727 | |||||
Business reorganization costs | 10,696 | 6,066 | 1,330 | 23,567 | 1,330 | |||||
Non-cash interest expense | 3 | 10 | 10 | 33 | 68 | |||||
Restructuring charges | 8,039 | 4,283 | (1,107) | 14,110 | 17,497 | |||||
Tax effect | (384) | 880 | (6,605) | 1,345 | (4,797) | |||||
Non-GAAP net loss attributable to stockholders | $ 35,765 | $ 10,642 | $ (30,306) | $ (42,152) | $ (101,360) | |||||
Adjustments to Net income (loss) per diluted share: | ||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
Net income (loss) per diluted share | ||||||||||
Numerator: | ||||||||||
GAAP net income (loss) available to common stockholders | $ 5,440 | $ (15,017) | $ (158,174) | $ 22,159 | $ (811,091) | |||||
GAAP net income (loss) available to common stockholders | $ 5,440 | $ (15,017) | $ (158,174) | $ 22,159 | $ (811,091) | |||||
Non-GAAP net income (loss) available to common stockholders | $ 35,765 | $ 10,642 | $ (30,306) | $ (42,152) | $ (101,360) | |||||
Denominator: | ||||||||||
GAAP weighted-average shares | 152,439 | 142,553 | 141,136 | 144,796 | 140,825 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 3,565 | - | - | 2,729 | - | |||||
GAAP dilutive weighted-average common shares: | 156,004 | 142,553 | 141,136 | 147,525 | 140,825 | |||||
Non-GAAP weighted-average shares1 | 152,439 | 142,533 | 141,136 | 144,796 | 140,825 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 3,565 | 4,826 | - | - | - | |||||
Non-GAAP weighted-average shares1 | 156,004 | 147,379 | 141,136 | 144,796 | 140,835 | |||||
GAAP net income (loss) per diluted share | $ 0.03 | $ (0.11) | $ (1.12) | $ 0.15 | $ (5.76) | |||||
Non-GAAP net loss per diluted share | $ 0.23 | $ 0.07 | $ (0.21) | $ (0.29) | $ (0.72) | |||||
1In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 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 | TWELVE MONTHS ENDED | |||||||||
Dec. 29, | Sep. 29, | Dec. 30, | Dec. 29, | Dec. 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
GAAP net income (loss) attributable to stockholders | $ 5,440 | $ (15,017) | $ (158,174) | $ 22,159 | $ (811,091) | |||||
Adjustments based on IFRS: | ||||||||||
8point3 | - | - | - | - | (8,485) | |||||
Legacy utility and power plant projects | - | (7) | (569) | 993 | (1,244) | |||||
Legacy sale-leaseback transactions | (75) | (181) | 10,984 | 5,680 | 18,802 | |||||
Mark-to-market (gain) loss on equity investment | (28,250) | (27,595) | 150 | (156,345) | 6,375 | |||||
Other adjustments: | ||||||||||
Business process improvement costs | 1,091 | 2,279 | - | 3,370 | - | |||||
Construction revenue on solar services contracts | 1,966 | 1,160 | - | (7,012) | - | |||||
(Gain) loss on sale and impairment of residential lease assets | (3,366) | 5,135 | 81,273 | 25,636 | 227,507 | |||||
Impairment of property, plant and equipment | 4,053 | - | - | 4,053 | 369,168 | |||||
Cost of above-market polysilicon | 27,549 | 23,878 | 37,231 | 126,805 | 87,228 | |||||
Litigation | (2,509) | - | - | (2,509) | - | |||||
Stock-based compensation expense | 8,006 | 6,992 | 6,424 | 26,934 | 28,215 | |||||
Amortization of intangible assets | 1,783 | 1,783 | 1,889 | 7,135 | 8,966 | |||||
Depreciation of idle equipment | - | - | - | - | 721 | |||||
Gain on business divestiture | - | - | - | (143,400) | (59,347) | |||||
Transaction-related costs | 1,723 | 976 | (3,142) | 5,294 | 17,727 | |||||
Business reorganization costs | 10,696 | 6,066 | 1,330 | 23,567 | 1,330 | |||||
Non-cash interest expense | 3 | 10 | 10 | 33 | 68 | |||||
Restructuring charges | 8,039 | 4,283 | (1,107) | 14,110 | 17,497 | |||||
Cash interest expense, net of interest income | 9,229 | 9,624 | 24,584 | 40,207 | 86,394 | |||||
Provision for income taxes | 9,388 | 5,378 | (8,379) | 26,631 | 1,010 | |||||
Depreciation | 16,773 | 17,205 | 21,054 | 74,445 | 120,367 | |||||
Adjusted EBITDA | $ 71,539 | $ 41,969 | $ 13,558 | $ 97,786 | $ 111,208 |
FY 2020 GUIDANCE
(in thousands except percentages) | Q1 2020 | FY 2020 |
Revenue (GAAP) | $435,000-$470,000 | $2,100,000-$2,300,000 |
Revenue (non-GAAP) | $435,000-$470,000 | $2,100,000-$2,300,000 |
Gross margin (GAAP) | 3% - 6% | N/A |
Gross margin (non-GAAP)1 | 9% - 12% | N/A |
Net loss (GAAP) | $(85,000)-$(70,000) | $(195,000)-$(145,000) |
Adjusted EBITDA2 | $(15,000)-$0 | $125,000-$175,000 |
1. | Estimated non-GAAP amounts above for Q1 2020 include net adjustments that increase gross margin by approximately $22 million related to cost of above-market polysilicon, $1 million related to stock-based compensation expense, and $2 million related to amortization of intangible assets. |
2. | Estimated Adjusted EBITDA amounts above for Q1 2020 include net adjustments that decrease net loss by approximately $22 million related to cost of above-market polysilicon, $16 million related to depreciation, $10 million in business reorganization costs, $10 million related to stock-based compensation expense, $8 million related to interest expense, $2 million related to amortization of intangible assets, $1 million related to restructuring charges, and $1 million related to income taxes. Estimated non-GAAP amounts above for fiscal 2020 include net adjustments that decrease net loss by approximately $115 million related to cost of above-market polysilicon, $64 million related to depreciation, $40 million related to stock-based compensation expense, $37 million related to interest expense, $37 million related to business reorganization charges, $15 million related to income taxes, $8 million related to amortization of intangible assets, and $4 million related to restructuring charges. |
SUNPOWER CORPORATION | ||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||
December 29, 2019 | ||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Net income (loss) attributable to non-controlling interests | |||||||||||||||||||||||||||||||||
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 | Other income (expense), net | Provision for income taxes | Equity in earnings of unconsolidated investees | ||||||||||||||||||||||||
GAAP | $ 352,226 | $ 434,708 | $ (183,173) | $ 45,528 | 12.9% | $ 65,345 | 15.0% | $ (15,734) | $ 5,440 | |||||||||||||||||||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | - | (44) | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | (75) | - | - | - | - | - | - | - | - | - | (75) | ||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | (29,250) | - | 1,000 | (28,250) | ||||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||||||||||||
Business process improvement costs | - | - | - | - | 1,091 | - | - | - | - | - | - | - | - | 1,091 | ||||||||||||||||||||||
Loss on sale and impairment of residential lease assets | - | - | - | (435) | - | - | - | - | - | (2,931) | - | - | - | (3,366) | ||||||||||||||||||||||
Construction revenue on solar services contracts | 3,235 | - | - | 1,966 | - | - | - | - | - | - | - | - | - | 1,966 | ||||||||||||||||||||||
Impairment of property, plant & equipment | - | - | - | - | - | - | - | - | - | - | - | - | 4,053 | 4,053 | ||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 29,181 | (1,632) | - | - | - | - | - | - | - | 27,549 | ||||||||||||||||||||||
Litigation | - | - | - | 709 | (3,224) | - | - | 6 | - | - | - | - | - | (2,509) | ||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 1,020 | 539 | - | 824 | 5,623 | - | - | - | - | - | 8,006 | ||||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 1,783 | - | - | (0) | - | - | - | - | - | 1,783 | ||||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | 569 | 10,127 | - | - | - | - | - | 10,696 | ||||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 1,723 | - | - | - | - | - | 1,723 | ||||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 3 | - | - | - | - | - | 3 | ||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 8,039 | - | - | - | - | 8,039 | ||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | (384) | - | (384) | ||||||||||||||||||||||
Non-GAAP | $ 355,461 | $ 434,664 | $ (183,173) | $ 48,713 | 13.7% | $ 94,715 | 21.8% | $ (17,366) | $ 35,765 | |||||||||||||||||||||||||||
September 29, 2019 | ||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | ||||||||||||||||||||||||||||||||||
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 | Other income (expense), net | Benefit from income taxes | Equity in earnings of unconsolidated investees | Loss attributable to non-controlling interests | Net income (loss) attributable to stockholders | ||||||||||||||||||||||
GAAP | $ 277,688 | $ 333,896 | $ (135,626) | $ 29,271 | 10.5% | $ 18,603 | 5.6% | $ 377 | $ (15,017) | |||||||||||||||||||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | - | (65) | - | (7) | - | - | - | - | - | - | - | - | - | - | (7) | |||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | (181) | - | - | - | - | - | - | - | - | - | - | (181) | |||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | (28,548) | - | 953 | - | (27,595) | |||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||||||||||||
Business process improvement costs | - | - | - | - | 2,279 | - | - | - | - | - | - | - | - | - | 2,279 | |||||||||||||||||||||
Loss on sale and impairment of residential lease assets | - | - | - | (511) | - | - | - | - | - | 10,756 | - | - | - | (5,110) | 5,135 | |||||||||||||||||||||
Construction revenue on solar services contracts | 15,790 | - | - | 1,160 | - | - | - | - | - | - | - | - | - | - | 1,160 | |||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 29,633 | (5,755) | - | - | - | - | - | - | - | - | 23,878 | |||||||||||||||||||||
Stock-based compensation expense | - | - | - | 741 | 781 | - | 903 | 4,567 | - | - | - | - | - | - | 6,992 | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 1,783 | - | - | - | - | - | - | - | - | - | 1,783 | |||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | - | 6,066 | - | - | - | - | - | - | 6,066 | |||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 976 | - | - | - | - | - | - | 976 | |||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 10 | - | - | - | - | - | - | 10 | |||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 4,283 | - | - | - | - | - | 4,283 | |||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | 880 | - | - | 880 | |||||||||||||||||||||
Non-GAAP | $ 293,478 | $ 333,831 | $ (135,626) | $ 30,473 | 10.4% | $ 53,079 | 15.9% | $ (5,378) | $ 10,642 | |||||||||||||||||||||||||||
December 30, 2018 | ||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | ||||||||||||||||||||||||||||||||||
SPES | SPT | Intersegment revenue eliminations | SPES | SPT | Intersegment revenue eliminations | Research and development | Sales, general and administrative | Restructuring charges | Loss on sale and impairment and sale of residential lease asset | Other income (expense), net | Benefit from income taxes | Loss attributable to non-controlling interests | Net income (loss) attributable to stockholders | |||||||||||||||||||||||
GAAP | $ 265,427 | $ 277,256 | $ (85,846) | $ 20,126 | 7.6% | $ (19,616) | -7.1% | $ (8,081) | $ (158,174) | |||||||||||||||||||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||||||||||||||||||
Legacy utility and power plant projects | (240) | (451) | - | (472) | (97) | - | - | - | - | - | - | - | - | (569) | ||||||||||||||||||||||
Legacy sale-leaseback transactions | 69,254 | - | - | 6,113 | 19 | - | - | - | - | - | 4,852 | - | - | 10,984 | ||||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | 150 | - | - | 150 | ||||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||||||||||||
Loss on sale and impairment of residential lease assets | - | - | - | (2,163) | - | - | - | - | - | 81,086 | - | - | 2,350 | 81,273 | ||||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | 2,055 | 35,176 | - | - | - | - | - | - | - | - | 37,231 | ||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 610 | 626 | - | 907 | 4,281 | - | - | - | - | - | 6,424 | ||||||||||||||||||||||
Amortization of intangible assets | - | - | - | 616 | 1,273 | - | - | - | - | - | - | - | - | 1,889 | ||||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | - | 1,330 | - | - | - | - | - | 1,330 | ||||||||||||||||||||||
Acquisition-related and other costs | - | - | - | - | - | - | - | (3,142) | - | - | - | - | - | (3,142) | ||||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 10 | - | - | - | - | - | 10 | ||||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | (1,107) | - | - | - | - | (1,107) | ||||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | (6,605) | - | (6,605) | ||||||||||||||||||||||
Non-GAAP | $ 334,441 | $ 276,805 | $ (85,846) | $ 26,885 | 8.0% | $ 17,381 | 6.3% | $ (8,081) | $ (30,306) | |||||||||||||||||||||||||||
TWELVE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||
December 29, 2019 | ||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in losses of unconsolidated investees | 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 | $ 1,019,861 | $ 1,314,379 | $ (470,015) | $ 104,406 | 10.2% | $ 29,138 | 2.2% | $ (7,639) | $ 22,159 | |||||||||||||||||||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||||||||||||||||||
8point3 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Legacy utility and power plant projects | - | (303) | - | 118 | 875 | - | - | - | - | - | - | - | - | - | - | 993 | ||||||||||||||||||||
Legacy sale-leaseback transactions | - | - | - | (4,764) | 1 | - | - | - | - | - | - | 10,443 | - | - | - | 5,680 | ||||||||||||||||||||
Mark-to-market gain on equity investments | - | - | - | - | - | - | - | - | - | - | - | (158,298) | - | 1,953 | - | (156,345) | ||||||||||||||||||||
Other adjustments: | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
Business process improvement costs | - | - | - | - | 3,370 | - | - | - | - | - | - | - | - | - | - | 3,370 | ||||||||||||||||||||
Intersegment mark-up | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Loss on sale and impairment of residential lease assets | - | - | - | (1,703) | - | - | - | - | - | 33,779 | - | - | - | - | (6,440) | 25,636 | ||||||||||||||||||||
Construction revenue on solar services contracts | 128,144 | - | - | 20,018 | - | - | - | - | - | - | - | - | - | - | (27,030) | (7,012) | ||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | - | 132,117 | (5,312) | - | - | - | - | - | - | - | - | - | 126,805 | ||||||||||||||||||||
Litigation | - | - | - | 709 | (3,224) | - | - | 6 | - | - | - | - | - | - | - | (2,509) | ||||||||||||||||||||
Impairment of property, plant & equipment | - | - | - | - | - | - | - | - | - | - | - | - | - | 4,053 | - | 4,053 | ||||||||||||||||||||
Stock-based compensation expense | - | - | - | 2,389 | 1,993 | - | 3,199 | 19,353 | - | - | - | - | - | - | - | 26,934 | ||||||||||||||||||||
Amortization of intangible assets | - | - | - | - | 7,135 | - | - | (0) | - | - | - | - | - | - | - | 7,135 | ||||||||||||||||||||
Gain on business divestiture | - | - | - | - | - | - | - | - | - | - | (143,400) | - | - | - | - | (143,400) | ||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | 1,346 | 22,221 | - | - | - | - | - | - | - | 23,567 | ||||||||||||||||||||
Transaction-related costs | - | - | - | - | - | - | - | 5,294 | - | - | - | - | - | - | - | 5,294 | ||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | - | 33 | - | - | - | - | - | - | - | 33 | ||||||||||||||||||||
Restructuring charges | - | - | - | - | - | - | - | - | 14,110 | - | - | - | - | - | - | 14,110 | ||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | 1,345 | - | - | 1,345 | ||||||||||||||||||||
Non-GAAP | $ 1,148,005 | $ 1,314,076 | $ (470,015) | $ 121,173 | 10.6% | $ 171,405 | 13.0% | $ (12,951) | $ (42,152) | |||||||||||||||||||||||||||
December 30, 2018 | ||||||||||||||||||||||||||||||||||||
Revenue | Gross profit / margin | Operating expenses | Other income (expense), net | Benefit from (provision for) income taxes | Equity in earnings of unconsolidated investees | Loss attributable to non-controlling interests | Net income (loss) attributable to stockholders | |||||||||||||||||||||||||||||
SPES | SPT | Intersegment revenue eliminations | SPES | SPT | Intersegment revenue eliminations | Research and development | Sales, general and administrative | Restructuring charges | Impairment and sale of residential lease asset | Gain on business divestitures | ||||||||||||||||||||||||||
GAAP | $ 1,045,614 | $ 1,069,010 | $ (388,539) | $ 156,204 | 14.9% | $ (427,899) | -40.0% | $ (25,386) | $ (811,091) | |||||||||||||||||||||||||||
Adjustments based on IFRS: | ||||||||||||||||||||||||||||||||||||
8point3 | (2,400) | (6,188) | - | (2,149) | (6,188) | - | - | - | - | - | - | - | - | (148) | - | (8,485) | ||||||||||||||||||||
Legacy utility and power plant projects | (828) | (3,317) | - | (787) | (457) | - | - | - | - | - | - | - | - | - | - | (1,244) | ||||||||||||||||||||
Sale-leaseback transactions | 101,581 | - | - | 661 | (419) | - | - | - | - | - | - | 18,560 | - | - | - | 18,802 | ||||||||||||||||||||
Mark-to-market loss on equity investments | - | - | - | - | - | - | - | - | - | - | - | 6,375 | - | - | - | 6,375 | ||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||||||||||||
Loss on sale and impairment and sale of residential lease assets | - | - | - | (14,847) | - | - | - | - | - | 251,984 | - | - | - | - | (9,630) | 227,507 | ||||||||||||||||||||
Impairment of property, plant and equipment | - | - | - | 33 | 355,074 | - | 12,832 | 1,229 | - | - | - | - | - | - | - | 369,168 | ||||||||||||||||||||
Cost of above-market polysilicon | - | - | - | (3,795) | 91,023 | - | - | - | - | - | - | - | - | - | - | 87,228 | ||||||||||||||||||||
Stock-based compensation expense | - | - | - | 2,370 | 2,626 | - | 5,496 | 17,723 | - | - | - | - | - | - | - | 28,215 | ||||||||||||||||||||
Amortization of intangible assets | - | - | - | 4,109 | 4,857 | - | - | - | - | - | - | - | - | - | - | 8,966 | ||||||||||||||||||||
Business reorganization costs | - | - | - | - | - | - | - | 1,330 | - | - | - | - | - | - | - | 1,330 | ||||||||||||||||||||
Depreciation of idle equipment | - | - | - | 289 | 432 | - | - | - | - | - | - | - | - | - | - | 721 | ||||||||||||||||||||
Gain on business divestitures | - | - | - | - | - | - | - | - | - | - | (59,347) | - | - | - | - | (59,347) | ||||||||||||||||||||
Acquisition-related and other costs | - | - | - | - | - | - | - | 17,727 | - | - | - | - | - | - | - | 17,727 | ||||||||||||||||||||
Non-cash interest expense | - | - | - | - | - | - | 7 | 61 | - | - | - | - | - | - | - | 68 | ||||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | - | - | 17,497 | - | - | - | - | - | - | 17,497 | ||||||||||||||||||||
Tax effect | - | - | - | - | - | - | - | - | - | - | - | - | (4,797) | - | - | (4,797) | ||||||||||||||||||||
Non-GAAP | $ 1,143,967 | $ 1,059,505 | $ (388,539) | $ 142,088 | 12.4% | $ 19,049 | 1.8% | $ (25,386) | $ (101,360) |
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SOURCE SunPower Corp.