ROSEVILLE, Calif.--(BUSINESS WIRE)--SPI Solar (“SPI”) (SOPW:OTCBB), a vertically integrated photovoltaic solar developer, today announced its results for the fourth quarter and year ended December 31, 2013.
Fourth-Quarter 2013 Results:
Total net sales for the fourth quarter of 2013 were $15.4 million, compared with $13.0 million for the fourth quarter of 2012. For the third quarter of 2013, SPI Solar reported total net sales of $21.3 million.
Total cost of goods sold for the fourth quarter of 2013 was $18.7 million, compared with $16.1 million for the fourth quarter of 2012. Total cost of goods sold for the third quarter of 2013 was $22.2 million.
Total operating expenses for the fourth quarter of 2013 were $14.5 million, compared with $11.5 million for the fourth quarter of 2012. Operating expenses for the third quarter of 2013 were $3.4 million.
Net loss for the fourth quarter of 2013, including several one-time charges, was $18.7 million, or ($0.09) per basic and diluted share. This compared with a net loss of $15.0 million, or ($0.08) per basic and diluted share, for the fourth quarter of 2012, and with a net loss of $3.6 million, or ($0.02) per basic and diluted share, for the third quarter of 2013.
The one-time charges for the fourth quarter of 2013 totaled $11.1 million and included a $7.5 million long term investment impairment charge to the Mountain Creek project, $2.7 million of contract losses and a $4.4 million bad debt reserve which was offset by a gain from the deconsolidation of SGT of $3.5 million.
“The solar market is finally moving out of winter and we are confident that SPI’s positioning in the downstream business is a right choice,” said Charlotte Xi, president, global chief operating officer and interim chief financial officer. “We will continue to focus on our EPC specialties and explore further business opportunities in solar. In addition, we believe SPI’s unique balance sheet position will allow us to effectively resolve the note from Cathay Bank in the near future.”
Full-Year 2013 Results:
For the year ended December 31, 2013, total net sales were $42.6 million, compared with $100.0 million for 2012.
For the year ended December 31, 2013, total cost of goods sold was $45.4 million, compared with $91.4 million for 2012.
For 2013, the Company reported total operating expenses of $28.8 million. This compared with total operating expenses of $32.4 million for 2012.
The Company recorded a net loss for 2013 of $32.2 million including the one-time charges described above, or ($0.16) per basic and diluted share, compared with a net loss of $25.4 million, or ($0.13) per basic and diluted share, for 2012.
Cash and cash equivalents at December 31, 2013 were $1.0 million, compared with $17.8 million at December 31, 2012.
SPI Solar’s majority shareholder, LDK Solar, has recently disclosed plans to liquidate itself and the result of these activities and the impact on SPI Solar’s business are currently unknown. SPI Solar plans to file its Annual Report on Form 10-K in conjunction with this news release, and investors are encouraged to review the 10-K for a review of all potential risks to the Company and its business. The 10-K filing and other filings with the Securities & Exchange Commission (SEC) can be found on the SEC Filings page of SPI Solar’s website, or by visiting the SEC’s website at sec.gov.
Recent Project & Business Segment Updates:
- Announced financing for Imclone project, removing $28.3 million of construction loan liability and interest payable from SPI Solar’s balance sheet while creating a pathway toward funding other projects
- Executed an agreement with KDC Solar to jointly develop and own the Mountain Creek solar project in New Jersey, enabling both companies to move forward in completing the project while evolving its business model toward more favorable financial results
- Made progress on other EPC projects toward seeking further funding from China Development Bank with expected funding completion to be approximately mid-year of 2014.
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 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 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.
– Financials Attached –
SOLAR POWER, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
|Cash and cash equivalents||$||1,031||$||17,823|
Accounts receivable, net of allowance for doubtful accounts of $5,887 and $393, respectively
|Accounts receivable, related party||3,905||11,858|
|Costs and estimated earnings in excess of billings on uncompleted contracts||-||31,423|
|Construction in progress||-||16,078|
|Prepaid expenses and other current assets||4,458||4,267|
|Total current assets||24,127||141,014|
|Restricted cash, net of current portion||400||400|
|Accounts receivable, noncurrent||12,349||-|
|Notes receivable, noncurrent||13,668||-|
|Property, plant and equipment at cost, net||11,752||18,754|
|Investment in affiliate||7,536||-|
|LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY|
|Accounts payable, related party||50,907||51,804|
|Lines of credit||4,250||10,877|
|Billings in excess of costs and estimated earnings on uncompleted contracts||862||4,935|
|Billings in excess of costs and estimated earnings on uncompleted contracts, related party||-||49|
|Loans payable and capital lease obligations||-||28,601|
|Total current liabilities||60,679||118,511|
|Financing and capital lease obligations, net of current portion||11,730||18,760|
|Commitments and contingencies||-||-|
|Stockholders’ (deficit) equity:|
|Preferred stock, par $0.0001, 20,000,000 shares authorized; none issued and outstanding||-||-|
|Common stock, par $0.0001, 250,000,000 shares authorized; 198,214,456 shares issued and outstanding||20||20|
|Additional paid in capital||53,376||48,219|
|Accumulated other comprehensive loss||(189||
|Total stockholders’ (deficit) equity||(2,867||)||24,122|
|Total liabilities and stockholders’ (deficit) equity||$||70,964||$||162,829|
|SOLAR POWER, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands except for share data)|
For the Three Months Ended
For the Year Ended
|Net sales, related party||-||2,066||-||35,539|
|Total net sales||15,375||13,001||42,629||99,956|
|Cost of goods sold|
|Cost of goods sold||15,950||11,750||42,582||56,016|
|Cost of goods sold, related party||-||1,615||-||32,617|
|Provision for losses on contracts||2,731||2,729||2,816||2,729|
|Total cost of goods sold||18,681||16,094||45,398||91,362|
|Gross (loss) profit||(3,306||)||(3,093||)||(2,769||)||8,594|
|General and administrative||5,915||4,373||17,534||13,061|
|Sales, marketing and customer service||496||6,043||2,050||10,647|
|Engineering, design and product management||625||910||1,761||2,636|
|Total operating expenses||14,536||11,474||28,845||32,382|
|Other income (expense):|
|Gain from deconsolidation||3,537||-||3,537||-|
|Total other income (expense), net||(20||)||(938||)||183||(1,720||)|
|Loss before income taxes||(17,862||)||(15,505||)||(31,431||)||(25,508||)|
|Provision (benefit) for income taxes||825||(500||)||813||(80||)|
|Net loss per common share|
|Basic and Diluted||$||(0.09||)||$||(0.08||)||$||(0.16||)||$||(0.13||)|
|Weighted average number of common shares used in computing per share amounts|
|Basic and Diluted||198,214,456||198,214,456||198,214,456||190,461,696|