SPI Solar Announces Second-Quarter 2014 Financial Results

ROSEVILLE, Calif.--()--SPI Solar (“SPI”) (SOPW:OTCBB), a vertically-integrated photovoltaic (PV) solar developer, today announced its results for the second quarter ended June 30, 2014.

Second-Quarter 2014 Results:

Total net sales for the second quarter of 2014 were $6.3 million, compared with $4.2 million for the second quarter of 2013. For the first quarter of 2014, SPI Solar reported total net sales of $3.6 million.

Total cost of goods sold for the second quarter of 2014 was $5.8 million, compared with $3.3 million for the second quarter of 2013. Total cost of goods sold for the first quarter of 2014 was $3.4 million.

Total operating expenses for the second quarter of 2014 were $1.2 million, compared with $7.4 million for the second quarter of 2013. Operating expenses for the first quarter of 2014 were $1.3 million.

During the second quarter of 2014, SPI Solar entered into an agreement with a non-U.S. investor and issued an $11 million convertible bond, bearing no interest. The convertible bond includes a $10.3 million beneficial conversion feature, which was recognized separately at issuance, resulting in a discount on the convertible bond, which will be amortized into interest expense. Interest expense of $0.7 million was recorded during the second quarter of 2014.

Net loss for the second quarter of 2014 was $1.3 million, or ($0.01) per basic and diluted share. This compared with a net loss of $6.8 million, or ($0.03) per basic and diluted share, for the second quarter of 2013, and with a net loss of $0.8 million, or ($0.00) per basic and diluted share, for the first quarter of 2014.

"During the quarter, we made significant progress in strengthening SPI as a platform for growth," said Xiaofeng Peng, Chairman of SPI. "Following the close of the quarter, we completed the previously announced private placement of $21.75 million and entered into a new private placement agreement for an additional $25.0 million. Importantly, these placements will dramatically improve our financial position and balance sheet to support our ambitious global growth strategy,” continued Peng. "In addition, we continued to work toward resuming growth of our global pipeline of solar PV projects, in conjunction with the roll out of our innovative Yes!® Solar solution targeting the high-growth residential segment,” Peng added. "Finally, we established for SPI during this quarter a strong foundation for a number of other important initiatives currently underway which we plan to capitalize on in the coming quarters."

Second-Quarter 2014 and Recent Updates:

  • Announced joint venture agreement with WIRCON GmbH to develop solar PV projects in the UK
  • Announced that the company had entered into a definitive purchase agreement for the sale of $25.0 million of common stock in a private placement
  • Entered into an agreement through SPI Solar’s wholly-owned subsidiary, Xinyu Xinwei New Energy Co., LTD. (“Xinwei”), to build and develop a 50 megawatt photovoltaic project in Fenyi County, China; subsequently announced an agreement for the sale and transfer of this project
  • Announced that Xinwei had entered into an agreement for the proposed construction of a 21 megawatt project in Jiangxi Province, China
  • Completed a $21.75 million private placement
  • Showcased the company’s Yes! Solar brand of high-quality, low-cost solar kits for residential deployment at the Intersolar North America 2014 trade show.

Cash and cash equivalents at June 30, 2014 were $5.9 million, compared with $1.0 million at December 31, 2013.

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. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities and turnkey residential solar solutions to its business, government and utility customers. For additional information visit: www.spisolar.com.

Safe Harbor Statement:

This release may contain 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. These statements involve known and unknown risks and uncertainties, including, but are not limited to, the ability of SPI Solar to complete its private placement of shares of common stock, generate new EPC projects and its ability to obtain funding for such projects, 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)

 

   June 30,   

December 31,
  2014     2013  
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 5,854 $ 1,031
Accounts receivable, net of allowance of $5,887, respectively 4,348 6,260
Accounts receivable, related party 3,855 3,905
Notes receivable - 8,450
Inventories, net 180 23
Prepaid expenses and other current assets   3,006     4,458  
Total current assets 17,243 24,127
Intangible assets 846 1,132
Restricted cash 160 400
Accounts receivable, noncurrent 11,345 12,349
Notes receivable, noncurrent 13,668 13,668
Notes receivable, noncurrent, related party 8,450 -
Other assets, noncurrent, related party 998 -
Investment in affiliates 8,912 7,536
Property, plant and equipment at cost, net   11,226     11,752  
Total assets $ 72,848   $ 70,964  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 3,325 $ 3,919
Accounts payable, related party 38,665 50,907
Line of credit - 4,250
Convertible bond, net 1,369 -
Accrued liabilities 738 741
Billings in excess of costs and estimated earnings on uncompleted contracts   -     862  
Total current liabilities 44,097 60,679
Financing and capital lease obligations 11,346 11,730
Other liabilities   1,415     1,422  
Total liabilities   56,858     73,831  
Stockholders’ equity (deficit):
Preferred stock, par $0.0001, 20,000,000 shares authorized; none issued and outstanding - -
Common stock, par $0.0001, 1,000,000,000 and 250,000,000 shares authorized; 238,839,456 and 198,214,456 shares issued and outstanding, respectively 24 20
Additional paid in capital 74,547 53,376
Accumulated other comprehensive loss (337 ) (189 )
Accumulated deficit   (58,244 )   (56,074 )
Total stockholders’ equity (deficit)   15,990     (2,867 )
Total liabilities and stockholders’ equity (deficit) $ 72,848   $ 70,964  
 

SOLAR POWER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

(unaudited)

 
For the Six Months Ended
June 30,
  2014       2013  
Net sales $ 9,942  

 

$ 5,965  
Total net sales 9,942 5,965
Cost of goods sold 9,184 4,481
Provision for losses on contracts   -     85  
Total cost of goods sold   9,184     4,566  
Gross profit 758 1,399
Operating expenses:
General and administrative 2,078 8,951
Sales, marketing and customer service 358 1,178
Engineering, design and product management   -     757  
Total operating expenses   2,436     10,886  
Operating loss (1,678 ) (9,487 )
Other (expense) income:
Interest expense (1,193 ) (2,013 )
Interest income 770 1,390
Other (expense) income, net   (69 )   247  
Total other expense, net   (492 )   (376 )
Loss before income taxes (2,170 ) (9,863 )
Provision for income taxes   -     111  
Net loss $ (2,170 ) $ (9,974 )
Net loss per common share:
Basic and Diluted $ (0.01 ) $ (0.05 )
Weighted average number of common shares used in computing per share amounts:
Basic and Diluted   201,322,191     198,214,456  
 

SOLAR POWER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

(unaudited)

 
For the three Months Ended
June 30,
  2014       2013  
Net sales $ 6,329  

 

$ 4,199  
Total net sales 6,329 4,199
Cost of goods sold 5,769

 

3,194
Provision for losses on contracts   -     85  
Total cost of goods sold   5,769     3,279  
Gross profit 560 920
Operating expenses:
General and administrative 1,110 6,691
Sales, marketing and customer service 40 439
Engineering, design and product management   -     309  
Total operating expenses   1,150     7,439  
Operating loss (590 ) (6,519 )
Other (expense) income:
Interest expense (1,072 ) (1,008 )
Interest income 360 851
Other expense, net   (38 )   (55 )
Total other expense, net   (750 )   (212 )
Loss before income taxes (1,340 ) (6,731 )
Provision for income taxes   -     102  
Net loss $ (1,340 ) $ (6,833 )
Net loss per common share:
Basic and Diluted $ (0.01 ) $ (0.03 )
Weighted average number of common shares used in computing per share amounts:
Basic and Diluted   204,395,775     198,214,456  

Contacts

Solar Power, Inc.
Roger Yu, 800-548-8767

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Contacts

Solar Power, Inc.
Roger Yu, 800-548-8767