Canadian Solar Reports Fourth Quarter and Year End 2008 Results
TORONTO ,March 17 /PRNewswire-Asia/ -- 2008 Results -- Q4 net revenues of$73.0 million , compared to Q4 2007 net revenues of$127.5 million and Q3 2008 net revenues of$252.4 million . -- Q4 net loss per diluted share of$1.42 compared to Q3 net income per diluted share of$0.31 . -- Full year 2008 net revenues of$709.2 million , a 134% increase over full year 2007 net revenues of$302.8 million . -- Q4 shipments of 19.6 MW, bringing full year 2008 shipments to 167.5 MW, a 100% increase over full year 2007 shipments of 83.4 MW. --December 31, 2008 cash position of$136.2 million , accounts receivables of$50.6 million and debt to equity ratio of 47%. 2009 Outlook and Developments -- Full year 2009 net revenue guidance of$600 to $800 million on shipments of 300 to 350 MW. -- Approximately 262 MW of projected 2009 module sales (74 - 87% of guidance) secured by contracts. Approximately 120 MW of the current contracts are for e-Modules.
Net revenues for the quarter were
The net loss in the fourth quarter included a
Net revenues for 2008 were
Our effective management helped us to mitigate the impact of foreign
exchange fluctuation in 2008. The total foreign exchange loss net of hedging
gain on financial instruments was
Dr.
Q408 Q308 Q407
Region Revenue % Revenue % Revenue %
Europe 57.0 78.1% 222.4 88.1% 124.1 97.3%
Asia 9.6 13.1% 16.5 6.5% 2.9 2.3%
America 6.4 8.8% 13.5 5.4% 0.5 0.4%
Total Net Revenue 73.0 100% 252.4 100% 127.5 100%
FY08 FY07
Region Revenue % Revenue %
Europe 635.3 89.6% 286.6 94.6%
Asia 41.6 5.9% 13.6 4.5%
America 32.3 4.5% 2.6 0.9%
Total Net Revenue 709.2 100% 302.8 100%
Recent Developments
-- Opened the cell research center, with cell efficiency targets of 18.5%
for mono-crystalline cells, 16.5% for multi-crystalline cells and 15.5%
for solar grade cells used in e-Modules by year-end 2009.
-- Moved the principal place of business of our U.S. subsidiary to San
Ramon, California in January 2009 .
-- Achieved 120-150 MW of ingot and wafer capacity and 270 MW of cell
capacity in 2008.
-- Renegotiated the prices and payment terms with certain wafer suppliers
reflecting the change in the market conditions. Further discussions are
currently ongoing with our strategic suppliers to adjust our long-term
supply contracts.
-- Customers installed and obtained financing for estimated 10-12 MW of
e-Modules in 2008 with up to 120 MW of installations expected in 2009.
Canadian Solar now has more than one year of field data from successful
installations of this product and from test installations.
Outlook
Based on current customer orders, market forecasts and supply contracts,
we are offering guidance on full year 2009 shipments of 300 to 350 MW, with
net revenues of
To protect cash flow from Euro sales against USD exchange rate fluctuation,
for the first half of 2009 we transacted
Dr. Qu stated: ''
We have already received record level inquiries from our customers with approximately 262 MW contracts signed and an additional 190 MW in the near-term contract pipeline.
We intend to continue our long-term supply chain strategy of combining internal solar wafer and cell production with direct purchasing from a select number of long-term strategic wafer and cell suppliers. The Company continues to develop and deploy new technologies; including the use of solar grade silicon based solar module products and improved PV cell structures including selective emitter, N-type and back contact cells."
Investor Conference Call / Webcast Details
A conference call has been scheduled for
The call may be accessed by dialing: +1-800-638-5495 (domestic) or
+1-617-614-3946 (international). The passcode to access the call is: 67938727.
A replay of the call will be available starting one hour after the call and
continuing until
About
Founded in 2001,
Contacts:
In Canada Alex Taylor , IR Director
Canadian Solar Inc.
Tel: +1-905-530-2334
Fax: +1-905-530-2001
Email: ir@csisolar.com
In the U.S.
Joseph Villalta The Ruth Group
Tel: +1-646-536-7003
Email: jvillalta@theruthgroup.com
Safe Harbor/Forward-Looking Statements
Certain statements in this press release including statements regarding
expected future financial and industry growth are forward-looking statements
that involve a number of risks and uncertainties that could cause actual
results to differ materially. These statements are made under the "Safe
Harbor" provisions of the U.S. Private Securities Litigation Reform Act of
1995. In some cases, you can identify forward-looking statements by such
terms as "believes," "expects," "anticipates," "intends," "estimates," the
negative of these terms, or other comparable terminology. Factors that could
cause actual results to differ include general business and economic
conditions and the state of the solar industry; governmental support for the
deployment of solar power; future shortage or availability of the supply of
high-purity silicon; demand for end-use products by consumers and inventory
levels of such products in the supply chain; changes in demand from
significant customers, including customers of our silicon materials sales;
changes in demand from major markets such as
Canadian Solar Inc.
Reconciliation of US GAAP Gross Profit (Loss), Operating Income
(Loss) and Net Income (Loss) to
Non-US GAAP Gross Profit (Loss), Operating Income (Loss) and Net
Income (Loss)
(Unaudited)
Use of Non-US GAAP Financial Information
To supplement its unaudited condensed consolidated financial statements
presented in accordance with US GAAP, Canadian Solar uses the following
measures as defined as non-US GAAP financial measures by the SEC: adjusted
gross profit, adjusted operating income (loss) and adjusted net income
(loss), each excluding share-based compensation and other one-time
non-cash charges, expenses or gains, which we refer to as special items.
Canadian Solar believes that non-US GAAP adjusted gross profit (loss),
adjusted operating income (loss) and adjusted net income (loss) measures
indicate the Company's baseline performance before subtracting those
charges. In addition, these non-US GAAP measures are among the primary
indicators used by the management as a basis for its planning and
forecasting of future periods. The presentation of these non-US GAAP
measures is not intended to be considered in isolation or as a substitute
for the financial information prepared and presented in accordance with US
GAAP.
2008 Q4
Operating
Gross loss loss Net loss
US GAAP (Loss)/Profit (25,220) (45,916) (50,620)
Share-Based Compensation 85 1,029 1,029
Total Special Items 85 1,029 1,029
Non-US GAAP (Loss)/Profit (25,135) (44,887) (49,591)
Non-US GAAP Earnings/(Loss) Per
Diluted Share ($1.39)
Adjusted Gross (Loss)/Margin -34.40%
Adjusted Operating (Loss)/Margin -61.5%
2008 Q3
Gross Operating
profit income Net income
US GAAP (Loss)/Profit 39,106 25,754 11,070
Share-Based Compensation 86 3,538 3,538
Total Special Items 86 3,538 3,538
Non-US GAAP (Loss)/Profit 39,192 29,292 14,608
Non-US GAAP Earnings/(Loss) Per
Diluted Share $0.41
Adjusted Gross (Loss)/Margin 15.5%
Adjusted Operating (Loss)/Margin 11.6%
2007 Q4
Gross Operating
profit income Net income
US GAAP (Loss)/Profit 14,608 5,491 5,993
Share-Based Compensation 90 2,181 2,181
Total Special Items 90 2,181 2,181
Non-US GAAP (Loss)/Profit 14,698 7,672 8,174
Non-US GAAP Earnings/(Loss) Per
Diluted Share $0.29
Adjusted Gross (Loss)/Margin 11.5%
Adjusted Operating (Loss)/Margin 6.0%
2008 1~12 2007 1~12
Net Operating Net
Gross Operating income/ Gross income/ income/
profit income (loss) profit (loss) (loss)
US GAAP Profit/(Loss) 75,198 23,132 (10,009) 23,776 (1,957) (210)
Share-Based
Compensation 350 9,102 9,102 253 9,200 9,200
Debt Conversion
Expenses -- -- 10,170 -- -- --
Total Special Items 350 9,102 19,272 253 9,200 9,200
Non-US GAAP Profit 75,548 32,234 9,263 24,029 7,243 8,990
Non-US GAAP Earnings Per
Diluted Share $0.29 $0.33
Adjusted Gross Margin 10.7% 7.9%
Adjusted Operating Margin 4.5% 2.4%
FINANCIAL TABLES BELOW:
Canadian Solar Inc.
Unaudited Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, Except Share And Per Share Data And
Unless Otherwise Stated)
Q4 2008 Q3 2008 Q4 2007
Net Revenues 73,013 252,362 127,459
Cost Of Revenues 98,233 213,256 112,851
Gross (Loss)/Profit (25,220) 39,106 14,608
Operating Expenses:
Selling Expenses 1,768 3,482 2,970
General And Administrative Expenses 18,455 9,267 5,826
Research And Development Expenses 473 603 321
Total Operating Expenses 20,696 13,352 9,117
(Loss)/Income From Operations (45,916) 25,754 5,491
Other Income/(Expenses):
Interest Expenses (2,479) (3,379) (1,423)
Interest Income 2,552 819 166
Tax Refund For Reinvestment -- -- 924
Debt Conversion Expenses -- -- --
Gain On Financial Instruments 7,031 7,424 --
Foreign Exchange (Loss)/Gain (10,363) (17,298) 727
(Loss)/Income Before Taxes (49,175) 13,320 5,885
Income Taxes (1,445) (2,250) 108
Net (Loss)/Income (50,620) 11,070 5,993
Basic (Loss)/Earnings Per Share ($1.42) $0.32 $0.22
Basic Weighted Average Number Of
Outstanding Shares 35,686,313 34,802,363 27,297,428
Diluted (Loss)/Earnings Per Share ($1.42) $0.31 $0.21
Diluted Weighted Average Number Of
Outstanding Shares 35,686,313 35,580,187 28,130,379
Canadian Solar Inc.
Unaudited Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, Except Share And Per Share Data And
Unless Otherwise Stated)
2008 1~12 2007 1~12
Net Revenues 709,196 302,798
Cost Of Revenues 633,998 279,022
Gross (Loss)/Profit 75,198 23,776
Operating Expenses:
Selling Expenses 10,608 7,531
General And Administrative Expenses 39,633 17,204
Research And Development Expenses 1,825 998
Total Operating Expenses 52,066 25,733
(Loss)/Income From Operations 23,132 (1,957)
Other Income/(Expenses):
Interest Expenses (11,266) (2,367)
Interest Income 3,531 562
Tax Refund For Reinvestment -- 924
Debt Conversion Expenses (10,170) --
Gain On Financial Instruments 14,455 --
Foreign Exchange (Loss)/Gain (20,087) 2,443
(Loss)/Income Before Taxes (405) (395)
Income Taxes (9,604) 185
Net (Loss)/Income (10,009) (210)
Basic (Loss)/Earnings Per Share ($0.32) ($0.01)
Basic Weighted Average Number Of
Outstanding Shares 31,566,503 27,283,305
Diluted (Loss)/Earnings Per Share ($0.32) ($0.01)
Diluted Weighted Average Number Of
Outstanding Shares 31,566,503 27,283,305
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands of U.S. Dollars)
Dec 31 Dec 31
2008 2007
ASSETS
Current Assets:
Cash And Cash Equivalents 115,661 37,667
Restricted Cash 20,622 1,625
Accounts Receivable, Net 50,678 58,637
Inventories 92,683 70,921
Value-Added Tax Recoverable 15,900 12,247
Advances To Suppliers 24,654 28,745
Foreign Currency Derivative Assets 6,974 --
Prepaid and Other Current Assets 10,919 10,058
Total Current Assets 338,091 219,900
Property, Plant and Equipment, Net 165,542 51,486
Intangible Assets 263 136
Deferred Convertible Notes Issuance Costs 36 3,296
Prepayments To Suppliers 43,087 4,103
Prepaid Rental 12,782 1,616
Investments 3,000 --
Deferred Tax Assets - Non-Current 6,998 3,966
TOTAL ASSETS 569,799 284,503
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities:
Short-Term Borrowings 99,858 40,374
Accounts Payable 29,957 8,251
Other Payables 24,043 6,153
Advances From Customers 3,571 1,962
Income Tax Payable 1,283 143
Amounts Due To Related Parties 94 209
Other Current Liabilities 2,737 2,121
Total Current Liabilities 161,543 59,213
Accrued Warranty Costs 10,847 3,879
Provision For Uncertain Tax Issue 8,704 2,278
Convertible Notes 1,000 75,000
Long-Term Debt 56,164 17,866
TOTAL LIABILITIES 238,258 158,236
Stockholders' Equity:
Common Shares 294,707 97,454
Additional Paid-In-Capital 35,538 26,436
Accumulated Deficit (13,613) (3,604)
Accumulated Other Comprehensive Income 14,909 5,981
TOTAL STOCKHOLDERS' EQUITY 331,541 126,267
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 569,799 284,503
SOURCECanadian Solar Inc. -0-03/17/2009 /CONTACT: In Canada:Alex Taylor , IR Director,Canadian Solar Inc. at +1-905-530-2334, fax: +1-905-530-2001 or ir@csisolar.com; in the U.S.:Joseph Villalta ,The Ruth Group at +1-646-536-7003 or jvillalta@theruthgroup.com forCanadian Solar / /Web site: http://www.csisolar.com / (CSIQ) CO:Canadian Solar Inc. ST:Canada ,China IN: OIL ENV GRE SU: ERN ERP CCA AR-AR -- CNTU024 -- 030403/17/2009 07:00 EDT http://www.prnewswire.com