“While results for the quarter met our recent expectations, at this juncture, we anticipate that fourth quarter results will continue to be impacted by project funding delays”
Total net sales for the third quarter of 2012 were $36.2 million, compared with $34.4 million for the third quarter of 2011 and with $24.4 million for the prior quarter.
Gross profit for the third quarter of 2012 was $5.2 million, compared with $2.2 million for the third quarter of 2011 and with $3.5 million for the second quarter of 2012.
Total operating expenses for the third quarter of 2012 were $10.4 million, or 28.7 percent of total net sales. This compared with total operating expenses of $3.3 million, or 9.6 percent of total net sales, for the third quarter of 2011 and with total operating expenses of $6.3 million, or 25.9 percent of total net sales, for the second quarter of 2012.
Operating expenses for the quarter included a goodwill impairment charge of $5.2 million as a result of SPI’s impairment analysis. The company recorded the impairment charge at the end of the quarter due primarily to the recent reduction in the company’s market capitalization, which resulted in SPI’s market value being significantly lower than its quarter-end book value.
Net loss for the third quarter of 2012 was $7.2 million, or ($0.04) per basic and diluted share. This compared with a net loss of $2.0 million, or ($0.01) per basic and diluted share, for the third quarter of 2011 and with a net loss of $2.1 million, or ($0.01) per basic and diluted share, for the prior quarter.
Cash and cash equivalents at September 30, 2012 were $20.4 million, compared with $24.5 million at December 31, 2011.
“While results for the quarter met our recent expectations, at this juncture, we anticipate that fourth quarter results will continue to be impacted by project funding delays,” said Stephen Kircher, CEO of SPI. “We are encouraged by the progress we have made to advance our project pipeline in Hawaii, which is a significant component of our 2013 revenue and profit plan. As more clarity emerges with the status of LDK and the solar industry in China we will update our strategy accordingly.”
2012 Business Outlook:
Due to continued delays on EPC projects that utilize solar panels from LDK Solar and require construction funding from China Development Bank, SPI now expects 2012 net sales in the range of $100 million to $120 million.
Teleconference and Webcast on November 14:
SPI Solar plans to hold a teleconference to discuss its third-quarter 2012 results today at 4:30 p.m. ET. The call can be accessed by dialing 1-877-941-1428 when calling within the United States, or 1-480-629-9808 when calling internationally. A playback will be available through November 21, 2012. To listen to the playback, call 1-877-870-5176 within the United States, or 1-858-384-5517 internationally, and use PIN number 4574731.
This call is also being webcast by ViaVid Broadcasting and can be accessed by clicking http://public.viavid.com/index.php?id=102461, or by visiting www.spisolar.com or ViaVid's website at www.viavid.net. The webcast will be available through November 21, 2012.
About SPI Solar (SOPW:OTCBB):
SPI Solar (“SPI”) (Solar Power, Inc.) is a vertically integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. Through the Company’s close relationship with LDK Solar, SPI extends the reach of its vertical integration from silicon to system. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities to its business, government and utility customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release contains certain “forward-looking statements” relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as “believes", “expects” or similar expressions. The forward-looking statements contained in this press release include statements regarding the company’s ability to execute its growth plan and meet revenue and sales estimates, enter into formal long-term supply agreements, market acceptance of products and services, and the impact of the company’s reorganization and its anticipated benefits on SPI Solar’s business model. In particular, this release contains forward-looking statements regarding the viability and potential profitability of projects to be reviewed and pursued, and whether those projects will ultimately meet underwriting criteria, or financial modeling sufficient for the company to undertake the projects. The commitments are to introduce and offer the projects, and the company cannot predict whether all projects will fit within its financial model for execution, or upon terms that are acceptable to all parties involved. These statements also involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
SOLAR POWER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
|September 30,||December 31,|
|2012||2011 As Recast (1)|
|Cash and cash equivalents||$||20,375||$||24,523|
|Accounts receivable, net of allowance for doubtful accounts of $94 and $115, respectively||55,257||71,266|
|Accounts receivable, related party||26,079||22,467|
|Costs and estimated earnings in excess of billings on uncompleted contracts||23,738||10,132|
|Costs and estimated earnings in excess of billings on uncompleted contracts, related party||-||360|
|Construction in progress||16,329||-|
|Assets held for sale||-||11,777|
|Prepaid expenses and other current assets||7,013||4,048|
|Total current assets||165,375||158,922|
|Property, plant and equipment at cost, net||19,635||14,081|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable, related party||52,915||62,215|
|Lines of credit||13,720||11,554|
|Income taxes payable||447||553|
|Billings in excess of costs and estimated earnings on uncompleted contracts||1,151||955|
|Billings in excess of costs and estimated earnings on uncompleted contracts, related party||188||2,992|
|Loans payable and capital lease obligations||28,473||4,319|
|Total current liabilities||128,526||97,602|
|Loans payable, financing and capital lease obligations, net of current portion||18,942||33,116|
|Commitments and contingencies||-||-|
|Preferred stock, par $0.0001, 20,000,000 shares authorized; none issued and outstanding||-||-|
|Common stock, par $0.0001, 250,000,000 shares authorized; 198,214,456 and 184,413,923 shares, respectively, issued and outstanding||20||18|
|Additional paid in capital||48,325||48,037|
|Accumulated other comprehensive loss||(308||)||(177||)|
|Retained earnings (accumulated deficit)||(9,360||)||1,061|
|Total stockholders’ equity||38,677||48,939|
|Total liabilities and stockholders’ equity||$||187,761||$||181,249|
|As recast to reflect the balances of Solar Green Technology S.p.A. (“SGT”) beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control.|
SOLAR POWER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
|For the Three Months Ended||For the Nine Months Ended|
|September 30,||September 30,|
2011 As Recast (1)
|2012||2011 As Recast (1)|
|Net sales, related party||12,470||
|Total net sales||36,232||34,376||86,955||78,449|
|Cost of goods sold:|
|Cost of goods sold||19,606||25,652||44,266||44,660|
|Cost of goods sold, related party||11,410||6,574||31,002||25,953|
|Total cost of goods sold||31,016||32,226||75,268||70,613|
|General and administrative||3,214||1,584||8,688||4,515|
|Sales, marketing and customer service||1,600||1,003||4,604||2,742|
|Engineering, design and product management||423||665||1,725||1,430|
|Total operating expenses||10,415||3,252||20,907||9,087|
|Other income (expense):|
|Other income (expense)||165||(760||)||290||133|
|Total other expense||(364||)||(1,081||)||(782||)||(864||)|
|Loss before income taxes||(5,563||)||(2,183||)||(10,002||)||(2,115||)|
|Provision for (benefit from) income taxes||1,645||(164||)||419||497|
|Net loss per common share:|
|Basic and Diluted||$||(0.04||)||$||(0.01||)||$||(0.06||)||$||(0.02||)|
|Weighted average number of common shares used in computing per share amounts:|
|Basic and Diluted||194,573,007||184,322,619||187,858,579||126,699,592|
|As recast to reflect the financial results of SGT beginning January 1, 2011 combined with the financial results of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control.|