SPI Solar Announces First-Quarter 2013 Financial Results

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SPI Solar Announces First-Quarter 2013 Financial Results

ROSEVILLE, Calif.--(BUSINESS WIRE)-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically integrated photovoltaic ("PV") solar developer, today announced its results for the first quarter ended March 31, 2013.

Total net sales for the first quarter of 2013 were $1.8 million, compared with $26.3 million for the first quarter of 2012. Construction starts in New Jersey are expected to resume in Q2 with KDC Solar for the previously announced Imclone and Mountain Creek projects. Prospects for new projects beyond the current pipeline continue to be impacted by the financial lending and solar industry conditions in general.


Total cost of goods sold for the first quarter of 2013 was $1.3 million, compared with $23.4 million for the first quarter of 2012. This is reflected by fewer projects initiated or completed in the first-quarter 2013 period, and the corresponding decrease in revenue.

Total operating expenses for the first quarter of 2013 were $3.4 million, compared with $4.2 million for the first quarter of 2012. The decline in operating expenses is a reflection of continued cost-reduction measures taken by the company.

Net loss for the first quarter of 2013 was $3.1 million, or ($0.02) per basic and diluted share. This compared with a net loss of $1.1 million, or ($0.01) per basic and diluted share, for the first quarter of 2012.

Cash and cash equivalents at March 31, 2013 were $1.8 million, compared with $17.8 million at December 31, 2012. During the first quarter of 2013, $13.0 million of construction funds, provided by China Development Bank, were drawn down and sent to KDC Solar to cover construction costs for the Imclone project, which had been delayed for over one year.

Business Outlook:

As noted in SPI Solar's fourth-quarter 2012 news release on April 3, 2013, due to difficult solar industry conditions in general, company-specific issues related to structuring third-party project financing, and delays in construction starts and completions, SPI Solar believes that providing a business outlook is not meaningful at this time. While 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. Should circumstances change or the markets become more predictable, SPI Solar will update investors through its 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)
 
March 31,
2013December 31,
(unaudited)2012
 
ASSETS
Current assets:
Cash and cash equivalents$1,775$17,823
Accounts receivable, net of allowance for doubtful accounts of $396 and $393, respectively44,87543,807
Accounts receivable, related party11,44011,858
Notes receivable7,00714,120
Costs and estimated earnings in excess of billings on uncompleted contracts37,28131,423
Construction in progress14,70216,078
Inventories, net1,4481,618
Prepaid expenses and other current assets4,4044,267
Restricted cash 20  20 
Total current assets122,952141,014
Intangible assets1,5601,703
Restricted cash494400
Notes receivable, noncurrent7,938-
Property, plant and equipment at cost, net18,50018,754
Other assets 822  958 
Total assets$152,266 $162,829 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$13,055$15,709
Accounts payable, related party51,35051,804
Lines of credit9,81910,877
Accrued liabilities6,5006,635
Billings in excess of costs and estimated earnings on uncompleted contracts2,1664,935
Billings in excess of costs and estimated earnings on uncompleted contracts, related party-49
Loans payable and capital lease obligations 28,579  28,601 
Total current liabilities111,469118,610
Financing and capital lease obligations, net of current portion18,26918,760
Other liabilities 1,337  1,337 
Total liabilities 131,075  138,707 
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 198,214,456 shares, respectively, issued and outstanding2020
Additional paid in capital48,29048,219
Accumulated other comprehensive loss(148)(287)
Accumulated deficit (26,971) (23,830)
Total stockholders' equity 21,191  24,122 
Total liabilities and stockholders' equity$152,266 $162,829 
 
SOLAR POWER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
    
For the Three Months Ended
March 31,
20132012 As Recast (1)
Net sales:
Net sales$1,766

 

$12,732
Net sales, related party - 

 

 13,567 
Total net sales1,76626,299
Cost of goods sold:
Cost of goods sold1,28710,411
Cost of goods sold, related party -  12,942 
Total cost of goods sold 1,287  23,353 
Gross profit4792,946
Operating expenses:
General and administrative2,2602,734
Sales, marketing and customer service739851

Engineering, design and product management

 448  577 
Total operating expenses 3,447  4,162 
Operating loss(2,968)(1,216)
Other (expense) income:
Interest expense(1,005)(917)
Interest income539639
Other income 302  219 

Total other expense, net

 (164) (59)
Loss before income taxes(3,132)(1,275)
Provision for (benefit from) income taxes 9  (179)
Net loss$(3,141)$(1,096)
Net loss per common share:
Basic$(0.02)$(0.01)
Diluted$(0.02)$(0.01)
Weighted average number of common shares used in computing per share amounts:
Basic 198,214,456  184,413,923 
Diluted 198,214,456  184,413,923 
(1) 

As recast to reflect the balances of Solar Green Technology S.p.A. combined with the balances of Solar Power, Inc. 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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