SPI Solar Announces Fourth-Quarter and Full-Year 2012 Financial Results

SPI Solar Announces Fourth-Quarter and Full-Year 2012 Financial Results

ROSEVILLE, Calif.--(BUSINESS WIRE)-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically integrated photovoltaic ("PV") solar developer, today announced its results for the fourth quarter and year ended December 31, 2012.

Fourth-Quarter 2012 Results:


Total net sales for the fourth quarter of 2012 were $13.0 million compared with $61.3 million for the fourth quarter of 2011, which included a $42.0 million solar panel shipment to KDC Solar LLC.

Total cost of goods sold for the fourth quarter of 2012 was $16.1 million compared with $53.3 million for the fourth quarter of 2011. Cost of goods sold for the fourth quarter of 2012 included $3.1 million in impairment charges due to $2.7 million in cost in excess of projected budgets on the Greek project portfolio and $0.4 million in impairment for inventory obsolescence.

Total operating expenses for the fourth quarter of 2012 were $11.4 million compared with $4.6 million for the fourth quarter of 2011. Operating expenses for the fourth quarter of 2012 included $3.1 million in non-recurring charges, $2.1 million of consulting and commission expenses related to the Company's Italian subsidiary, $1.1 million in audit-related expenses, and $0.1 million in impairment of an intangible asset due to a change in business strategy.

Net loss for the fourth quarter of 2012 was $15.2 million, or ($0.08) per basic and diluted share. This compared with net income of $3.8 million, or $0.02 per basic and diluted share, for the fourth quarter of 2011.

Full-Year 2012 Results:

As a reminder, the historical financials and comparisons noted below reflect the acquisition of Solar Green Technologies, the Company's Italian subsidiary, as required under U.S. GAAP accounting guidelines for a transfer of an entity under common control. As a result, excluded from the results of operations below are the results of legacy Solar Power, Inc. for the three months ended March 31, 2011, as follows: net sales of $5.8 million, cost of goods sold of $5.1 million, and operating expenses of $2.2 million.

For the year ended December 31, 2012, total net sales were $100.0 million, compared with $139.8 million for 2011. Gross profit for 2012 was $8.6 million, compared with $15.9 million for 2011.

For 2012, the Company reported total cost of goods sold of $91.4 million, compared with $123.9 million for 2011.

For 2012, the Company reported total operating expenses of $32.3 million, which included goodwill impairment and other charges of $6.0 million. This compared with total operating expenses of $13.7 million for 2011.

The Company recorded a net loss for 2012 of $25.6 million, or ($0.13) per basic and diluted share, compared with net income of $1.2 million, or $0.01 per basic and diluted share, for 2011.

Cash and cash equivalents at December 31, 2012 were $17.8 million, compared with $24.5 million at December 31, 2011.

10-K Filing Delay:

SPI Solar announced yesterday the delay in the filing of the Company's Annual Report on Form 10-K with the Securities and Exchange Commission for the year ended December 31, 2012 due to accounting issues related to its Italian operations and subsequent delays in completing the required consolidation under U.S. GAAP. The Company intends to file its Form 10-K for the period as soon as practicable.

Business Outlook:

The solar industry in general has gone through several fundamental shifts as a policy driven market, including but not limited to continued difficulty in structuring third party project financing whether debt or tax equity. In addition, the Company has experienced delays in construction starts and completions due to the impact on contractors and vendors in the industry. As such, the Company has recently determined that providing a business outlook would no longer be meaningful at this time, given the uncertainties around such projections that are beyond the Company's control. As such, although the Company will continue to file financial reports and issue earnings releases, it will not during the near term continue to hold quarterly earnings teleconferences or issue a business outlook. Should circumstances change or the markets become more predictable, we will update investors through our reports and may re-institute quarterly earnings teleconferences.

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 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, 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)
(unaudited)
 
December 31,December 31,
20122011 As Recast (1)

 

ASSETS
Current assets:

 

Cash and cash equivalents$17,823$24,523

Accounts receivable, net of allowance for doubtful accounts of $393 and $115, respectively

56,086

71,335

Accounts receivable, related party11,85824,584
Notes receivable14,1205,862
Costs and estimated earnings in excess of billings on uncompleted contracts31,42310,132
Costs and estimated earnings in excess of billings on uncompleted contracts, related party-360
Construction in progress16,078-
Inventories, net1,6187,949
Assets held for sale-11,777
Prepaid expenses and other current assets5,2611,863
Restricted cash 20  270 
Total current assets154,287158,655
Intangible assets1,7032,565
Goodwill-5,178
Restricted cash400688
Property, plant and equipment at cost, net18,75514,081
Other assets 205  83 
Total assets$175,350 $

181,250

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$29,364$11,913
Accounts payable, related party50,48062,215
Lines of credit10,87711,554
Accrued liabilities7,581

3,107

Income taxes payable-553
Billings in excess of costs and estimated earnings on uncompleted contracts4,935955
Billings in excess of costs and estimated earnings on uncompleted contracts, related party492,992
Loans payable and capital lease obligations 28,478  4,319 
Total current liabilities131,764

97,608

Financing and capital lease obligations, net of current portion18,87633,116
Other liabilities 1,337  1,479 
Total liabilities 151,977  

132,203

 
Commitments and contingencies--
Stockholders' 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 and 184,413,923 shares, respectively, issued and outstanding2018
Additional paid in capital48,21948,037
Accumulated other comprehensive loss(410)(177)
Retained earnings (accumulated deficit) (24,456) 

1,169

 

Total stockholders' equity

 23,373  

49,047

 
Total liabilities and stockholders' equity$175,350 $181,250 
 
(1) As adjusted to reflect the balances of Solar Green Technology S.p.A. 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)
(unaudited)
 
For the Three Months EndedFor the Years Ended
December 31,December 31,
20122011 As Recast (1)2012

2011 As Recast (1)

Net sales:

 

Net sales$10,935

 

$59,106$64,417$108,297
Net sales, related party 2,066 

 

 2,212  35,539  

31,470

 
Total net sales13,00161,31899,956

139,767

Cost of goods sold:
Cost of goods sold11,38850,80255,65495,462
Cost of goods sold, related party1,6152,45232,617

28,405

Impairment charges 3,091  -  3,091  - 
Total cost of goods sold16,09453,25491,362

123,867

Gross profit(3,093)8,0648,594

15,900

Operating expenses:

 

General and administrative4,3332,58513,021

7,100

Sales, marketing and customer service6,0431,45510,647

4,197

Impairment charges148-6,038

400

Engineering, design and product management 910  534  2,636  

1,964

 
Total operating expenses 11,434  4,574  32,342  

13,661

 
Operating (loss) income(14,527)3,490(23,748)

2,239

Other (expense) income:
Interest expense(971)(425)(4,065)

(1,490

)
Interest income5061152,527

183

Other (expense) income (426) 728  (135) 

861

 
Total other expense, net (891) 418  (1,673) (446)
(Loss) income before income taxes(15,418)3,908(25,421)

1,793

Provision for income taxes (216) 119  204  

616

 
Net (loss) income$(15,202)$3,789 $(25,625)$

1,177

 
Net (loss) income per common share:
Basic$(0.08)$0.02 $(0.13)$

0.01

 
Diluted$(0.08)$0.02 $(0.13)$

0.01

 
Weighted average number of common shares used in computing per share amounts:

 

Basic 198,214,456  157,289,831  190,461,696  

184,413,923

 
Diluted 198,214,456  157,318,316  190,461,696  

184,442,408

 
 
(1) As recast to reflect the balances of Solar Green Technology S.p.A. 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.
Jim Pekarsky, CFO, 415-590-3803

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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