ONTARIO, Nov. 15, 2012 /PRNewswire-FirstCall/ -- Canadian
Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ), one
of the world's largest solar companies, today announced its
financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
- Solar module shipments were 384 MW, compared to 412 MW in the
second quarter of 2012.
- Net revenue was $326.0 million,
compared to $348.2 million in the
second quarter of 2012.
- Revenue derived from the Company's total solution business was
21.5% of total revenue, compared to 5.5% in the second quarter of
2012.
- Gross margin was 2.2%, compared to 12.4% in the second quarter
of 2012.
- Diluted loss per share was $1.01,
compared to $0.59 in the second
quarter of 2012.
- Cash, cash equivalents and restricted cash balances at the end
of the quarter were $690.8 million,
compared to $692.1 million at the end
of the second quarter 2012.
Third Quarter 2012 Results
Net revenue for the third quarter of 2012 was $326.0 million, down 6.4% from $348.2 million in the second quarter of 2012 and
down 34.8% from $499.6 million in the
third quarter of 2011. Total solar module shipments in the
third quarter of 2012 were 384 MW, compared to 412 MW in the second
quarter of 2012 and 355 MW in the third quarter of 2011.
Total solar module shipments in the third quarter of 2012 included
21.1 MW used in the Company's total solution business, up from
8.7MW in the second quarter of 2012, and up from 19.3 MW in the
third quarter of 2011.
By geography, in the third quarter of 2012, sales to European
markets represented 47.9% of net revenue, sales to North America represented 24.9% of net
revenue, and sales to Asia and all
other markets represented 27.2% of net revenue, compared to 69.4%,
15.7% and 14.9%, respectively, in the second quarter of 2012 and
61.7%, 16.1% and 22.2%, respectively, in the third quarter of
2011.
|
Q3 2012
|
Q2 2012
|
Q3 2011
|
US$M
|
%
|
US$M
|
%
|
US$M
|
%
|
Europe
|
156.2
|
47.9
|
241.5
|
69.4
|
308.2
|
61.7
|
America
|
81.1
|
24.9
|
54.5
|
15.7
|
80.6
|
16.1
|
Asia and others
|
88.7
|
27.2
|
52.2
|
14.9
|
110.8
|
22.2
|
Total
|
326.0
|
100.0
|
348.2
|
100.0
|
499.6
|
100.0
|
Gross profit in the third quarter of 2012 was $7.3 million, compared to $43.2 million in the second quarter of 2012 and
$11.9 million in the third quarter of
2011. The sequential quarterly decline in gross profit was
primarily due to lower shipment volume and continued downward
pressure on average selling prices, partially offset by lower
manufacturing costs. In the second quarter of 2012 the Company's
gross profit was impacted by an adjustment of $14 million primarily as result of the
recognition of the benefit from the Company's purchase of warranty
insurance. The year-over-year decline in gross profit
was primarily due to the decline in average selling prices,
partially offset by lower manufacturing costs and higher shipment
volume. In the third quarter of 2012, the Company recorded an
additional charge of $2.1 million,
representing 0.65% of revenue, to reflect the higher countervailing
duty on the Company's products imposed by the US Department of
Commerce in its final trade investigation determination. Gross
margin in the third quarter of 2012 was 2.2%, compared to 12.4% in
the second quarter of 2012 and 2.4% in the third quarter of
2011.
Total operating expenses were $41.8
million in the third quarter of 2012, compared to
$46.2 million in the second quarter
of 2012 and $42.6 million in the
third quarter of 2011.
Selling expenses were $21.4
million in the third quarter of 2012, down 12.4% from
$24.4 million in the second quarter
of 2012 and up 14.4% from $18.7
million in the third quarter of 2011. The sequential
quarterly decline in selling expenses was due to lower freight unit
costs and lower shipment volume. The year-over-year increase
in selling expenses was due to increases in freight and other
export-related expenses as a result of higher shipment volume, as
well as increases in sales force headcount and related salary
expenses.
General and administrative expenses were $17.0 million in the third quarter of 2012, down
7.4% from $18.4 million in the second
quarter of 2012 and up 6.1% from $16.0
million in the third quarter of 2011. The sequential
quarterly decline in general and administrative expenses was due to
a $1.3 million reversal of a bad debt
expense and lower bank charges, partially off-set by higher salary
expenses following the annual salary adjustment. The
year-over-year increase in general and administrative expenses was
due to higher consulting fees, increases in headcount as well as
the yearly salary adjustment.
Research and development expenses were $3.4 million in the third quarter of 2012, down
2.3% from $3.5 million in the second
quarter of 2012 and down 57.1% from $7.9
million in the third quarter of 2011. The
year-over-year decline in research and development expenses was due
to a reduced level of product development activities following the
completion of several key projects at the end of 2011.
Operating margin was negative 10.6% in the third quarter of
2012, compared to negative 0.9% in the second quarter of 2012 and
negative 6.1% in the third quarter of 2011. The sequential
quarterly and year-over-year decline in operating margin was due to
lower gross profit, partially offset by lower operating
expenses.
Interest expense in the third quarter of 2012 was $15.2 million, compared to $15.1 million in the second quarter of 2012 and
$10.8 million in the third quarter of
2011. The sequential quarterly and year-over-year increase in
interest expense was primarily due to higher bank borrowings in the
third quarter of 2012. Interest income in the third quarter
of 2012 was $3.6 million, compared to
$3.4 million in the second quarter of
2012 and $3.0 million in the third
quarter of 2011. The sequential quarterly and year-over-year
increase in interest income was due to higher restricted cash
balances.
The Company recorded a loss on change in fair value of
derivatives of $5.3 million in the
third quarter of 2012, compared to a loss of $1.1 million in the second quarter of 2012 and a
gain of $14.5 million in the third
quarter of 2011. Net foreign exchange gain in the third
quarter of 2012 was $7.0 million
compared to a net foreign exchange loss of $7.2 million in the second quarter of 2012 and a
net foreign exchange loss of $23.9
million in the third quarter of 2011.
Income tax benefit in the third quarter of 2012 was $1.8 million, compared to income tax expense of
$2.1 million in the second quarter of
2012 and income tax benefit of $3.4
million in the third quarter of 2011. In the third quarter
of 2012 the Company considered that some portion of the deferred
tax assets relating to the current year operating losses in its
Chinese manufacturing operations would not be realized based on its
current forecast. Therefore, it recorded approximately $4.4 million income tax charge as a result of
including the valuation allowance loss in the annual estimated tax
expenses.
Net loss attributable to Canadian Solar in the third quarter of
2012 was $43.7 million, or
$1.01 per share, compared to net loss
of $25.5 million, or $0.59 per share, in the second quarter 2012,and
net loss of $43.9 million, or
$1.02 per share, in the third quarter
of 2011.
Financial Condition
As of September 30, 2012, the
Company had $690.8 million of cash,
cash equivalents and restricted cash, compared to $692.1 million as of June
30, 2012. Operating cash flow was approximately
negative $57.6 million in the third
quarter of 2012, reflecting the impact of approximately
$68.6 million in cash outflows for
the Company's previously disclosed acquisition of 16 projects from
the former SkyPower Limited in Ontario, Canada. Excluding the impact of
this acquisition, adjusted operating cash flow, a non-GAAP measure,
was positive $11.0 million in the
third quarter of 2012 compared to $0.8
million in the second quarter of 2012. A table
providing a reconciliation of non-GAAP to the nearest GAAP measure
is set out at the end of this press release.
Accounts receivable balance, net of allowance for doubtful
accounts, at the end of the third quarter of 2012 was $257.8 million compared to $262.2 million at the end of the second quarter
of 2012. Accounts receivable turnover was 79 days in the
third quarter of 2012 compared to 69 days in the second quarter of
2012.
Inventories at the end of the third quarter of 2012 were
$317.8 million, compared to
$343.8 million at the end of the
second quarter of 2012. Inventory turnover was 102 days in
the third quarter of 2012 compared to 107 days in the second
quarter of 2012.
Accounts and notes payable at the end of the third quarter of
2012 were $462.8 million, compared to
$436.8 million at the end of the
second quarter of 2012. Accounts payable turnover in the
third quarter of 2012 was 128 days compared to 122 days in the
second quarter of 2012.
Short-term borrowings at the end of the third quarter of 2012
totaled $890.6 million, compared to
$927.7 million at the end of the
second quarter of 2012. Long-term debt at the end of the
third quarter 2012 was $224.2
million, compared to $136.3
million at the end of the second quarter of 2012. The
increase in long-term debt was primarily due to the drawdown of the
long-term credit facilities to finance the Company's acquisition of
16 projects from the former SkyPower Limited in Ontario, Canada. The Company's unused
borrowing lines of credit totaled $761
million at the end of the third quarter of 2012.
As of September 30, 2012, the
Company had $402.6 million in total
stockholders' equity, compared to $441.4
million as of June 30,
2012.
Dr. Shawn Qu, Chairman and Chief
Executive Officer of Canadian Solar, remarked: "Our results for the
third quarter were broadly in line with our guidance, despite
continued competitive pricing pressure and demand weakness.
During the quarter, we continued to strengthen our position as one
of the four largest suppliers of photovoltaic modules in the
world. But more importantly, we did so while maintaining
positive operating cash flow, net of our landmark acquisition of
highly accretive solar power projects in Canada. In the past
several weeks, we announced a series of solar power plant
development agreements, including the sale of our first solar power
project in Canada to Stonepeak
Infrastructure Partners, and a significant EPC agreement with Penn
Energy Renewables Ltd., which we have since then expanded.
After the end of the third quarter, we completed construction of
two TransCanada Corporation projects, which are now connected to
the grid, and we received REA approval for six out of the remaining
seven TransCanada projects, which are now in the initial phase of
construction. Clearly, we continue to make impressive headway on
the build-out of our project pipeline and the development of our
total solutions business. This is a major differentiator and
diversification strategy for Canadian Solar, which we believe will
be a key driver of our success and sustainability over the long
term."
Michael G. Potter, Senior Vice
President and Chief Financial Officer of Canadian Solar commented:
"Our gross margin was impacted by our lower shipment volume and
industry-wide pricing pressure. Better than expected volume
in Europe and strength in emerging
markets were offset by ongoing weakness in the U.S. We
continue to actively focus on strict cost and inventory
controls. We reduced inventory by approximately $26 million during the third quarter and expect a
further improvement in the fourth quarter. Importantly,
because we have managed our inventory and our balance sheet
prudently, we are not under the pressure to sell inventory
regardless of profitability that we believe some of our competitors
are facing. Our long-term debt increased in the quarter by
approximately $88 million. This
is directly related to the growth of our projects business and the
drawdown of our long-term credit facility in support of our
previously announced acquisition, and the ongoing construction, of
our Ontario solar power plant
projects. We remain in good standing with our bank syndicates
and we are actively managing these important relationships.
We do not currently plan to expand manufacturing capacity as we can
meet expected demand from our existing plants."
Utility Scale Project Pipeline Update
As previously announced, Canadian Solar completed the sale to
Stonepeak Infrastructure Partners of a utility-scale solar power
plant for approximately C$48.0
million (US$48.4 million) in
the third quarter of 2012. Shortly after the end of the third
quarter, the Company also finished construction of two projects:
Brockville 1 and William Rutley totaling 20MW (AC), which were
sold to TransCanada Corporation. Final payment and revenue
recognition for these two projects will be determined by testing,
which is currently underway. The Company currently expects
payment and revenue recognition for these two projects in the first
quarter of 2013. In addition, six of the seven remaining
solar power projects sold to TransCanada Corporation totaling 56MW
(AC) have received Ontario Renewable Energy Approval (REA) and
construction is expected to be completed between the second quarter
and the third quarter of 2013, with payment and revenue recognition
expected in the following quarter after acceptance testing is
completed. The Company now expects to recognize revenue of over
$400 million for eight of the nine
projects sold to TransCanada Corporation during 2013.
Additionally, the Company has also filed REA applications for
all sixteen of the projects it acquired from the former SkyPower
Limited and expects to receive notice to proceed (NTP) with, and
start construction on, these projects during the period from first
quarter to third quarter of 2013. The Company expects to generate
over $800 million in revenue from
these sixteen projects in the next 12 to 24 months.
During the third quarter, the Company entered into a turnkey
engineering, procurement and construction (EPC) contract and
operations and maintenance agreement with Penn Energy Renewables
Ltd. for the construction and operation of two new solar energy
farms totaling 18.7 MW (AC) in Ontario,
Canada. This agreement has since been expanded to three
solar energy farms totaling 28.7MW (AC), with expected completion
by the third quarter of 2013. The Company expects to recognize
revenue for these contracts on a percentage of completion
basis.
In the U.S. market, the Company made good progress expanding its
utility-scale project pipeline to approximately 243MW (DC) at the
end of the third quarter of 2012. Currently, the Company expects up
to 5MW (DC) to be built and recognized in the fourth quarter of
2012, including the recently announced 2.5 MW solar power plant in
Laurinburg, NC. In 2013, the
Company expects its U.S. projects business to increase rapidly,
with construction of up to 130MW expected during the year.
Business Outlook
The Company's business outlook is based on management's current
views with respect to operating and market conditions, its current
order book, and the challenging global financing environment, which
continues to result in customer demand uncertainty.
Management's views and estimates are subject to change without
notice.
For the fourth quarter of 2012, shipments are expected to be in
the range of approximately 380MW to 420MW, with gross margin
expected to be between 1.0% and 3.0%.
For the full year 2012, the Company is revising its shipment
guidance to be in the range of approximately 1.5GW to 1.6GW,
compared to its previous guidance of 1.8GW to 2.0GW.
Dr. Shawn Qu, Chairman and Chief
Executive Officer of Canadian Solar, remarked: "We are seeing
strong demand for our PV modules in the fourth quarter as customers
around the world start to consolidate their PV module procurement
in favor of tier-one manufacturers with solid quality, proven track
record and strong bankability, with some customers also rushing to
finish projects before the year end. We still, however, face
pricing pressure as industry consolidation is not yet
completed. We are taking a conservative approach, as we have
always done in the past. We are being very careful and
selective with regard to new opportunities to ensure certainty of
payment. For example, we expect to realize at least 30 MW of
Golden Sun projects in China in the fourth quarter and could
potentially realize up to 45 MW. On a geographic basis, we
have a robust pipeline in place in Canada, the U.S., Japan and China, with potential in India and South
America, among others. We are one of the world's
largest solar companies and one of the lowest cost suppliers of
solar photovoltaic modules. We have a strong and highly
bankable global brand. So while we expect the current
headwinds to continue, we are highly confident in our long-term
ability to succeed based on our differentiated strategy, market
leadership position, and balance sheet."
Recent Developments
On October 16, 2012, the Company
announced that its subsidiary, Canadian Solar Solutions Inc.,
expanded its relationship with Penn Energy Renewables Ltd. with an
additional 10MW (AC) turnkey engineering, procurement and
construction contract and operations and maintenance agreement for
the construction and operation of a solar power project in
Ontario.
On October 16, 2012, the Company
announced that its modules were installed in a 5MW (AC) solar plant
located in a dense agricultural area of Lancaster County, Pennsylvania. The
environment-friendly solar project, dubbed Keystone, was developed
by Community Energy Solar and constructed by groSolar.
On October 15, 2012, the Company
announced today that it will partner with the largest privately
held roofing company in the United States,PetersenDean,on a new
roofing program, which the Company is introducing.
PetersenDean has launched a successful solar division and
will actively promote the new roofing program, capitalizing on its
decades of roofing experience to improve the installation quality
and costs for installation of a residential solar system.
On October 9, 2012, the Company
announced that Canadian Solar Australia, a wholly owned subsidiary,
and REDSET, a solar products distribution company serving a network
of over 1,000 licensed installers across Australia, entered into a solar module supply
agreement.
On October 2, 2012, the Company
announced the delivery 26 MW of its high quality and
high-performing CS6P-P solar power modules to EPC contractor, TSK
Solar, for the "San Fermin" solar power plant installation in
Puerto Rico, co-developed by Uriel
Renewables Inc. and Coqui Power LLC. The solar power plant is
located in the North Eastern town of Loiza, a region that regularly
faces adverse weather conditions such as hurricanes, tropical
storms and flooding. Due to the specific nature of the
project and its location, the project's electrical equipment was
installed on structures that elevated them two to four meters above
ground and designed to withstand winds of up to 260 kilometers per
hour.
On September 24, 2012, the Company
announced that it provided the solar modules for one of
Europe's largest skiing halls -
the alpincenter in Hamburg-Wittenburg, Germany. The PV rooftop installation on
the alpincenter uses Canadian Solar modules with a total output of
3.6 MW. The alpincenter's operator reaps a double benefit:
using the self-produced solar power significantly offsets energy
costs while at the same time reducing the power needed to run the
cooling system thanks to the shadowing effect underneath the solar
system.
On September 11, 2012, the Company
announced a new program designed to make it even easier for
commercial installers and solar developers to bring more solar
projects to completion in the U.S. market. The new financial
solutions program will include extended terms and a commercial loan
offering in partnership with De Lage Landen Financial Services,
Inc. (DLL), a global provider of financing solutions, further
demonstrating Canadian Solar's commitment to its customers'
success.
On September 10, 2012, the Company
launched its new ResidentialAC module, the latest addition to the
Intelligratedâ„¢ Power product family, at Solar Power International
2012.
On September 5, 2012, the Company
and Mortenson Construction, a leading engineering, procurement and
construction (EPC) Contractor, broke ground on a 2.5 MW PV solar
installation in Laurinburg, N.C.,
an agricultural community in Scotland county. The solar project is
set to be completed in December
2012.
On September 5, 2012, the Company
announced it will supply solar modules for Turkey's first and largest governmental solar
PV project which will be installed by Gehrlicher Merk Solar, the
joint venture company for the Turkish market of Gehrlicher Solar
and Merk Solar Enerji. The two companies have won the public
tendering for the Gursu municipality of Bursa in Turkey. The milestone PV project has a
total capacity of 96 kW and is supported directly by the Turkish
Prime Minister's office. Canadian Solar was selected out of
13 different module manufacturers for this project.
On August 29, 2012, the Company
announced that it has supplied more than 8 MW of solar modules to
groSolar for three utility and commercial photovoltaic (PV)
projects in the United States.
On August 28, 2012, the Company
announced that its subsidiary, Canadian Solar Solutions Inc., has
closed an 18.7 MW AC turnkey engineering, procurement and
construction (EPC) contract and operations and maintenance
agreement for the construction and operation of two new solar
energy farms in Ontario, Canada
for Penn Energy Renewables Ltd. The construction will begin
in the third quarter of 2012, with the projects expected to be
fully operational in the summer of 2013.
On August 27, 2012, the Company
announced it completed the sale to Stonepeak Infrastructure
Partners of a utility-scale solar power plant for approximately
C$48.0 million (US$48.4 million). As the developer, EPC and
construction financier, Canadian Solar built the solar power plant
to provide enough clean, renewable energy to power more than 1,200
homes in eastern Ontario near the
town of Napanee.
On August 21, 2012, the Company
announced that, along with its partner MECOSUN, a French PV
integrator, it achieved the Pass'Innovation certification from the
CTSB, a French institution. The testing attests to the
integration of Canadian Solar's PV panels with MECOSUN's MV€
system.
Conference Call Details
The Company will hold a conference call on Thursday, November 15, 2012 at 8:00 a.m. U.S. Eastern Standard Time
(9:00 p.m., November 15, 2012 in Hong Kong) to discuss the Company's financial
results for the third quarter ended September 30, 2012 and provide an update to its
business strategy and outlook.
The dial-in phone number for the live audio call is
+1-617-786-2905 or +1-800-599-9795, with passcode 27534422.
A live webcast of the conference call will also be available
on Canadian Solar's website at www.canadiansolar.com.
A replay of the call will be available approximately two hours
after the conclusion of the live call through 10:00 a.m. on November 23,
2012, U.S. Eastern Standard Time (11:00 p.m., November 23,
2012 in Hong Kong) by
telephone at +1-888-286-8010 or +1-617-801-6888, with passcode
83917942. A webcast replay will also be available at
www.canadiansolar.com.
About Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar Inc. (NASDAQ: CSIQ) is one of the world's largest
solar companies. As a leading vertically integrated provider of
ingots, wafers, solar cells, solar modules and other solar
applications, Canadian Solar designs, manufactures and delivers
solar products and solar system solutions for on-grid and off-grid
use to customers worldwide. With operations in North America, Europe, Australia and Asia, Canadian Solar provides premium quality,
cost-effective and environmentally-friendly solar solutions to
support global, sustainable development. For more information,
please visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements:
Certain statements in this press release including but not
limited to statements regarding our expected future shipment
volumes, gross margins, supply cost, manufacturing capacities,
future market share, business prospects and future quarterly or
annual results, particularly the management quotations and the
statements in the "Business Outlook" section, 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 the risks regarding the
previously disclosed SEC investigation as well as 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; changes
in demand from major markets such as Germany; changes in customer order patterns;
changes in product mix; capacity utilization; level of competition;
pricing pressure and declines in average selling prices; delays in
new product introduction; delays in utility-scale project approval
process; delays in utility-scale project construction; continued
success in technological innovations and delivery of products with
the features customers demand; shortage in supply of materials or
capacity requirements; availability of financing; exchange rate
fluctuations; litigation and other risks as described in the
Company's SEC filings, including its annual report on Form 20-F
filed on April 27, 2012. Although the
Company believes that the expectations reflected in the forward
looking statements are reasonable, it cannot guarantee future
results, level of activity, performance, or achievements. You
should not place undue reliance on these forward-looking
statements. All information provided in this press release is as of
today's date, unless otherwise stated, and Canadian Solar
undertakes no duty to update such information, except as required
under applicable law.
FINANCIAL TABLES FOLLOW
Canadian Solar Inc.
|
Unaudited Condensed Consolidated Statement of
Operations
|
(In
Thousands of US Dollars, Except Share And Per Share Data And Unless
Otherwise Stated)
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
Item
|
September 30
|
June
30
|
September 30
|
September 30
|
September 30
|
|
2012
|
2012
|
2011
|
2012
|
2011
|
Net revenues
|
325,965
|
348,222
|
499,639
|
999,991
|
1,424,863
|
Cost of
revenues
|
318,696
|
305,054
|
487,735
|
924,499
|
1,283,964
|
Gross
profit
|
7,269
|
43,168
|
11,904
|
75,492
|
140,899
|
Selling
expenses
|
21,372
|
24,405
|
18,685
|
66,088
|
48,247
|
General
and administrative expenses
|
17,015
|
18,379
|
16,037
|
50,565
|
49,474
|
Research
and development expenses
|
3,380
|
3,459
|
7,885
|
9,870
|
14,827
|
Total
operating expenses
|
41,767
|
46,243
|
42,607
|
126,523
|
112,548
|
Income
(loss) from operations
|
(34,498)
|
(3,075)
|
(30,703)
|
(51,031)
|
28,351
|
Interest
expenses
|
(15,232)
|
(15,059)
|
(10,795)
|
(43,410)
|
(32,107)
|
Interest
income
|
3,552
|
3,416
|
3,040
|
9,698
|
6,683
|
Gain
(loss) on change in foreign currency derivatives
|
(5,328)
|
(1,079)
|
14,494
|
(6,636)
|
(8,158)
|
Foreign
exchange gain (loss)
|
7,041
|
(7,226)
|
(23,949)
|
91
|
(25,912)
|
Investment
income (loss)
|
(684)
|
(416)
|
309
|
(1,144)
|
91
|
Loss
before incomes taxes
|
(45,149)
|
(23,439)
|
(47,604)
|
(92,432)
|
(31,052)
|
Income tax
benefit (expenses)
|
1,796
|
(2,104)
|
3,379
|
2,142
|
(271)
|
Net
loss
|
(43,353)
|
(25,543)
|
(44,225)
|
(90,290)
|
(31,323)
|
Less:
Net income (loss) attributable to non–controlling
interest
|
315
|
(69)
|
(348)
|
194
|
(405)
|
Net
loss attributable to Canadian Solar Inc.
|
(43,668)
|
(25,474)
|
(43,877)
|
(90,484)
|
(30,918)
|
Loss per
share-basic
|
($1.01)
|
($0.59)
|
($1.02)
|
($2.10)
|
($0.72)
|
Shares
used in computation-basic
|
43,209,194
|
43,160,446
|
43,154,552
|
43,175,046
|
43,049,773
|
Loss per
share-diluted
|
($1.01)
|
($0.59)
|
($1.02)
|
($2.10)
|
($0.72)
|
Shares
used in computation-diluted
|
43,209,194
|
43,160,446
|
43,154,552
|
43,175,046
|
43,049,773
|
Canadian Solar Inc.
|
Unaudited Condensed Consolidated Statement of
Comprehensive Income
|
(In
Thousands of US Dollars)
|
|
|
|
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
|
September 30
|
June 30
|
September 30
|
September 30
|
September 30
|
|
2012
|
2012
|
2011
|
2012
|
2011
|
Net loss
|
(43,353)
|
(25,543)
|
(44,225)
|
(90,290)
|
(31,323)
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
Foreign
currency translation adjustments
|
2,785
|
(4,976)
|
258
|
2,656
|
9,404
|
Comprehensive loss
|
(40,568)
|
(30,519)
|
(43,967)
|
(87,634)
|
(21,919)
|
Less:
comprehensive income(loss) attributable to non-controlling
interest
|
485
|
(37)
|
51
|
552
|
5
|
Comprehensive loss attributable to Canadian Solar
Inc.
|
(41,053)
|
(30,482)
|
(44,018)
|
(88,186)
|
(21,924)
|
Canadian Solar Inc.
|
Unaudited Condensed Consolidated Balance
Sheet
|
(In
Thousands of US Dollars)
|
|
|
|
|
September 30, 2012
|
December 31, 2011
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and
cash equivalents
|
|
318,972
|
|
343,995
|
Restricted
cash
|
|
371,869
|
|
178,270
|
Accounts
receivable trade, net
|
|
257,762
|
|
292,176
|
Accounts
receivable, unbilled
|
|
9,669
|
|
51,371
|
Amount due
from related parties
|
|
5,850
|
|
19,836
|
Inventories
|
|
317,793
|
|
296,568
|
Value
added tax recoverable
|
|
9,351
|
|
16,974
|
Advances
to suppliers, net
|
|
11,636
|
|
11,309
|
Foreign
currency derivative assets
|
|
365
|
|
2,727
|
Project
assets-Current
|
|
91,595
|
|
37,133
|
Prepaid
expenses and other current assets
|
|
69,884
|
|
45,219
|
Total
current assets
|
|
1,464,746
|
|
1,295,578
|
Property,
plant and equipment, net
|
|
477,118
|
|
510,069
|
Deferred
tax assets
|
|
28,558
|
|
23,227
|
Advances
to suppliers, net
|
|
563
|
|
258
|
Prepaid
land use right
|
|
18,566
|
|
13,805
|
Investments in affiliates
|
|
12,184
|
|
11,008
|
Intangible
assets, net
|
|
4,379
|
|
8,516
|
Goodwill
|
|
490
|
|
2,265
|
Project
assets-Non current
|
|
273,860
|
|
-
|
Other
non-current assets
|
|
36,045
|
|
15,083
|
TOTAL
ASSETS
|
|
2,316,509
|
|
1,879,809
|
Current
liabilities:
|
|
|
|
|
Short-term
borrowings
|
|
890,569
|
|
743,687
|
Accounts
and notes payable
|
|
462,761
|
|
305,998
|
Amounts
due to related parties
|
|
1,727
|
|
3,008
|
Other
payables
|
|
79,037
|
|
84,676
|
Advances
from customers
|
|
11,179
|
|
65,216
|
Foreign
currency derivative liabilities
|
|
2,530
|
|
-
|
Other
current liabilities
|
|
32,870
|
|
33,862
|
Total
current liabilities
|
|
1,480,673
|
|
1,236,447
|
Accrued
warranty costs
|
|
55,835
|
|
47,021
|
Convertible notes
|
|
987
|
|
950
|
Long-term
borrowings
|
|
224,156
|
|
88,249
|
Liability
for uncertain tax positions
|
|
13,829
|
|
12,301
|
Deferred
tax liabilities - non current
|
|
66,440
|
|
-
|
Loss
contingency accruals
|
|
27,774
|
|
27,863
|
Total
liabilities
|
|
1,869,694
|
|
1,412,831
|
Mezzanine equity
|
|
44,197
|
|
-
|
Common
shares
|
|
502,562
|
|
502,403
|
Additional
paid-in capital
|
|
(39,494)
|
|
(53,331)
|
Accumulated deficit
|
|
(119,177)
|
|
(28,693)
|
Accumulated other comprehensive income
|
|
48,211
|
|
45,555
|
Total
Canadian Solar Inc. shareholders' equity
|
|
392,102
|
|
465,934
|
Non-controlling interest
|
|
10,516
|
|
1,044
|
Total
equity
|
|
402,618
|
|
466,978
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND
SHAREHOLDERS` EQUITY
|
|
2,316,509
|
|
1,879,809
|
About Non-GAAP Financial Measures
To supplement its financial disclosures presented in accordance
with GAAP, Canadian Solar uses non-GAAP measures which are adjusted
from the most directly comparable GAAP results for certain items,
as described below. The Company presents the non-GAAP adjusted
operating cash flow because it believes it is important for the
readers of the press release to know what the Company's adjusted
operating cash flow was before the impact of the acquisition of 16
projects in Ontario from former
SkyPower Limited. The non-GAAP adjusted operating cash flow is not
a measure of financial performance under U.S. GAAP, and should not
be considered in isolation or as an alternative to operating cash
flows and other measures determined in accordance with GAAP.
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2012
|
|
June
30, 2012
|
Non-GAAP
adjusted operating cash inflow
|
|
$11.0M
|
|
$0.8M
|
Subtract
consideration paid for acquisition
|
|
$68.6M
|
|
$70.4M
|
Operating
cash outflow
|
|
($57.6M)
|
|
($69.6M)
|
SOURCE Canadian Solar Inc.