Canadian Solar Reports Third Quarter 2009 Results and Issues 2010 Guidance
- 87% increase in net revenues to $213.1 million, compared to Q209 net revenues of $114.2 million.
- 113% increase in shipments of 102.6 MW, compared to Q209 shipments of 48.2 MW, setting a new quarterly shipping record.
- Gross margin of 16.3%, compared to Q209 gross margin of 20.2% and Q308 gross margin of 15.5%.
- Net income of $0.69 per diluted share in Q309, compared to $0.49 per diluted share in Q209. Net profit of $25.3 million sets new quarterly record. Net profit margin reaches 11.9%.
Net revenues for the third quarter of 2009 were
Net income for the third quarter of 2009 was
Shipments for the third quarter of 2009 were 102.6 MW, compared to
shipments of 48.2 MW for the second quarter of 2009 and 60 MW for the third
quarter of 2008. Third quarter 2009 sales came from all geographic markets
important to the solar industry, with
Dr.
Revenue by Geography |
|||||||||
Region |
|
3Q 2009 |
2Q 2009 |
3Q 2008 |
|||||
|
US$ million |
% |
|
US$ million |
% |
|
US$ million |
% |
|
Asia |
|
13.6 |
6.4% |
|
31.1 |
27.2% |
|
16.4 |
6.5% |
Europe |
|
186.6 |
87.6% |
|
66.9 |
58.6% |
|
222.4 |
88.1% |
America |
|
12.9 |
6.0% |
|
16.2 |
14.2% |
|
13.5 |
5.4% |
Total |
|
213.1 |
100.0% |
114.2 |
100.0% |
252.4 |
100.0% |
Recent Developments
- We completed batch testing of our enhanced selective emitter cells and
pre-launched our first commercially available 250/260 W modules at the
Solar Power International conference in Anaheim. We have begun converting the first cell line over to our proprietary enhanced selective emitter technology and expect to begin limited commercial delivery of 260 W enhanced selective emitter modules early in 2010. - We have begun field-testing a two-axis tracker, which we believe will be more effective but considerably less expensive than similar products currently available on the market.
- Completed a follow-on public offering of 6.9 million shares on
October 21, 2009 , which raised net proceeds of approximately$103.3 million . - Canadian Solar Japan recently received full JPEC certifications for our residential roof solar systems and JET certification for our solar modules. We have started to deliver these products to our Japanese customers.
- Appointed
Arthur Chien , our CFO, as our new Compliance Officer, effectiveNovember 2, 2009 . - Appointed
Charlotte Xi Klein as VP of Global Operations, effectiveNovember 2, 2009 . Ms. Klein joinedCanadian Solar as corporate controller in 2007 and most recently served as VP of Finance and Compliance Officer, where she was also instrumental in establishingCanadian Solar's overseas operations during the past 12 months. Prior to joiningCanadian Solar , she spent 18 years inthe United States , where she obtained her MBA and MA degrees and worked her way up from cost accounting to controllership in sizable corporate manufacturing facilities, such asSaint-Gobain Corporation andArmstrong World Industries . She was previously a financial executive atARAMARK Corporation , a Fortune 500 company. She is also a member of the AICPA and has been aTexas -licensed CPA since 1996. - Completed our recent expansion of solar module manufacturing capacity to 820 MW, which we believe is the world's third largest.
- On track in our Phase III solar cell capacity expansion, which we
expect to bring our cell capacity from 270MW to 420MW by
December 2009 .
Outlook for Q409 and 2010
The outlook below is based on the Company's current views with respect to operating and market conditions, its current order book and customer' forecasts, which are subject to change. The risks to our guidance also include changes in product pricing, availability and pricing of feedstock, and the project financing environment.
We are reiterating our fourth quarter 2009 guidance of shipments of approximately 128 MW to 138 MW, with gross margin expected to be in the high- teens on a percentage basis. We expect shipments of approximately 295 MW to 305 MW for the full year 2009.
For the full year 2010, we believe our shipments will be in the range of
600 MW to 700 MW. We believe that the demand for our high quality solar
modules will come from all major markets, including
Given the demand forecast, the Company plans to increase our solar module
production capacity from today's 820 MW to 1 GW by the end of
Under this expansion plan, we expect to produce approximately 450 MW to 500 MW of solar cells internally, while outsourcing approximately 200 MW to 250 MW from our long-term solar cell partners.
By achieving a higher ratio of internal cell production compared to external sourcing, we expect to sustain gross margins in the high teens and maintain a healthy net profit margin.
Dr.
Investor Conference Call / Webcast Details
The dial-in number for the live audio call, which will begin today,
A replay of the call will be available approximately one hour after the
conclusion of the live call through
About
Safe Harbor/Forward-Looking Statements:
Certain statements in this press release including statements regarding
our expected future shipment volumes, gross and net margins, manufacturing
capacities and cell conversion efficiencies, 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 available supplies 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. |
||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||
(In Thousands of U.S. Dollars, Except Share And Per Share Data And Unless Otherwise Stated) |
||||||||
Item |
|
3Q 2009 |
2Q 2009 |
3Q 2008 |
2009 1~9 |
2008 1~9 |
||
Net revenues |
|
$213,126 |
$114,176 |
$252,362 |
$376,767 |
$636,183 |
||
Cost of revenues |
|
178,392 |
91,096 |
213,256 |
322,848 |
535,765 |
||
Gross profit |
|
34,734 |
23,080 |
39,106 |
53,919 |
100,418 |
||
Selling expenses |
|
6,564 |
3,229 |
3,482 |
11,674 |
8,839 |
||
General and administrative expenses |
|
7,327 |
6,410 |
9,267 |
18,255 |
21,178 |
||
Research and development expenses |
|
964 |
530 |
603 |
1,963 |
1,352 |
||
Total operating expenses |
|
14,855 |
10,169 |
13,352 |
31,892 |
31,369 |
||
Income from operations |
|
19,879 |
12,911 |
25,754 |
22,027 |
69,049 |
||
Interest expenses |
|
(2,498) |
(1,913) |
(3,385) |
(6,665) |
(9,717) |
||
Interest income |
|
756 |
2,849 |
819 |
4,168 |
979 |
||
Gain on debt extinguishment |
|
- |
- |
- |
- |
2,430 |
||
Debt conversion expenses |
|
- |
- |
- |
- |
(10,170) |
||
Gain (Loss) on foreign currency derivatives |
|
(1,381) |
(1,050) |
7,424 |
8,935 |
7,424 |
||
Exchange gain (loss) |
|
9,665 |
6,038 |
(17,295) |
12,827 |
(9,602) |
||
Income before taxes |
|
26,421 |
18,835 |
13,317 |
41,292 |
50,393 |
||
Income tax |
|
|
(1,103) |
(1,163) |
(2,251) |
(3,086) |
(8,681) |
|
Net income |
|
$25,318 |
$17,672 |
$11,066 |
$38,206 |
$41,712 |
||
Less: net income attributable to non controlling interest |
|
|
(25) |
|
|
(25) |
|
|
|
|
|
$25,343 |
$17,672 |
$11,066 |
$38,231 |
$41,712 |
|
Basic earnings per share |
|
$0.71 |
$0.50 |
$0.32 |
$1.07 |
$1.39 |
||
Basic weighted average outstanding shares |
|
35,765,185 |
35,699,453 |
34,802,363 |
35,704,895 |
30,110,549 |
||
Diluted earnings per share |
|
$0.69 |
$0.49 |
$0.31 |
$1.06 |
$1.34 |
||
Diluted weighted average outstanding shares |
|
36,571,071 |
36,141,329 |
35,630,794 |
36,126,760 |
31,197,198 |
Note: The third quarter 2008 net profit was decreased by
Canadian Solar Inc. |
||||
Unaudited Condensed Consolidated Balance Sheets |
||||
(In Thousands of U.S. Dollars) |
||||
Item |
|
September 30, 2009 |
|
December 31,2008 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$103,094 |
|
$115,661 |
Restricted cash |
|
132,620 |
|
20,622 |
Accounts receivable, net of allowance for doubtful accounts |
|
227,704 |
|
51,611 |
Inventories |
|
144,351 |
|
92,683 |
Value added tax recoverable |
|
31,306 |
|
15,900 |
Advances to suppliers |
|
17,399 |
|
24,654 |
Foreign currency derivative assets |
|
- |
|
6,974 |
Prepaid and other current assets |
|
13,744 |
|
10,910 |
Current assets - subtotal |
|
670,218 |
|
339,015 |
Property, plant and equipment, net |
|
207,655 |
|
165,542 |
Intangible assets |
|
202 |
|
263 |
Advances to suppliers |
|
44,481 |
|
43,087 |
Prepaid land use right |
|
12,599 |
|
12,782 |
Investment |
|
4,171 |
|
3,000 |
Deferred tax assets - non current |
|
7,912 |
|
6,966 |
Total assets |
|
947,238 |
|
570,655 |
Liabilities and equity |
|
|
|
|
Current liabilities |
|
|
|
|
Short term borrowings |
|
321,962 |
|
110,665 |
Accounts payable |
|
156,487 |
|
29,957 |
Other payables |
|
26,712 |
|
24,043 |
Advances from customers |
|
1,839 |
|
3,571 |
Amounts due to related parties |
|
356 |
|
94 |
Foreign currency derivative liabilities |
|
1,850 |
|
- |
Other current liabilities |
|
6,470 |
|
4,333 |
Current liabilities - subtotal |
|
515,676 |
|
172,663 |
Accrued warranty costs |
|
14,282 |
|
10,847 |
Liability for uncertain tax positions |
|
10,384 |
|
8,704 |
Convertible notes |
|
857 |
|
830 |
Long term borrowings |
|
30,751 |
|
45,357 |
Total liabilities |
|
571,950 |
|
238,401 |
Common shares |
|
395,425 |
|
395,154 |
Additional paid in capitals |
|
(62,411) |
|
(66,705) |
Retained earnings (Accumulated deficit) |
|
27,127 |
|
(11,104) |
Accumulated other comprehensive income |
|
15,161 |
|
14,909 |
Total CSI stockholders’ equity |
|
375,302 |
|
332,254 |
Non-controlling interest |
|
(14) |
|
- |
Total equity |
|
375,288 |
|
332,254 |
Total liabilities and equity |
|
$947,238 |
|
570,655 |
SOURCE
In Canada, Alex Taylor, IR Director of Canadian Solar Inc., +1-519-954-2057, or fax, +1-519-954-2597, or ir@canadiansolar.com; or in the U.S., David Pasquale of Global IR Partners, +1-914-337-8801, or csiq@globalirpartners.com, for CSIQ