Estimated read time: 26-27 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
[STK] NASDAQ-NMS:CSIQ
[IN] OIL UTI ENV ALT GRE
[SU] CCA ERN ERP
TO BUSINESS, ENERGY, AND ENVIRONMENTAL EDITORS:
Canadian Solar Reports Fourth Quarter and Full Year 2013 Results
GUELPH, Ontario, March 5, 2014 /PRNewswire-FirstCall/ -- Canadian
Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ), one of
the world's largest solar power companies, today announced its
financial results for the fourth quarter and full year ended December
31, 2013.
Fourth Quarter 2013 Highlights
-- Solar module shipments were 621 MW, compared to 478 MW in the third
quarter of 2013.
-- Net revenue was $519.5 million, compared to $490.9 million in the
third quarter of 2013.
-- Net revenue from the total solutions business was 23.4% of total
net revenue, compared to 41.1% in the third quarter of 2013.
-- Gross margin was 19.5%, compared to 20.4% in the third quarter of
2013.
-- Diluted earnings per share was $0.39, compared to diluted earnings
per share of $0.56 in the third quarter of 2013.
-- Cash, cash equivalents and restricted cash balances at the end of
the quarter totaled $679.4 million, compared to $681.7 million at the
end of the third quarter of 2013.
-- Cash flow from operations was approximately $73.2 million, compared
to $152.0 million in the third quarter of 2013.
-- Closed the sale of one solar power plant in Ontario, Canada valued
at over C$61 million to TransCanada Corporation (TSX, NYSE: TRP)
("TransCanada").
-- Increased the total late-stage solar project pipeline to
approximately 1.3 GW, with geographic diversification in Canada,
Japan, the U.S. and China.
Full Year 2013 Highlights
-- Solar module shipments were 1,894 MW, compared to 1,543 MW in 2012.
-- Net revenue was $1,654.4 million, compared to $1,294.8 million in
2012.
-- Net revenue from the total solutions business was 28.6% of total
net revenue, compared to 11.5% in 2012.
-- Diluted earnings per share was $0.63, compared to diluted loss per
share of $4.53 in 2012.
-- Cash flow from operations was approximately $229.5 million,
compared to negative $147.8 million in 2012.
Fourth Quarter 2013 Results
Net revenue for the fourth quarter of 2013 was $519.5 million, up 5.8%
from $490.9 million in the third quarter of 2013 and up 76.2% from
$294.8 million in the fourth quarter of 2012. Total solar module
shipments in the fourth quarter of 2013 were 621 MW, compared to 478
MW in the third quarter of 2013 and 404 MW in the fourth quarter of
2012. Solar module shipments to the Chinese market represented 42.9%
of total shipments in the fourth quarter of 2013, compared to less
than 1% in the third quarter of 2013, and 9.9% in the fourth quarter
of 2012. Solar module shipments to the Japanese market represented
19.7% of total shipments in the fourth quarter of 2013, compared to
29.5% in the third quarter of 2013 and 11.7% in the fourth quarter of
2012. Solar module shipments in the fourth quarter of 2013 included 41
MW used in the Company's total solutions business, compared to 60 MW
in the third quarter of 2013 and 16 MW in the fourth quarter of 2012.
By geography, in the fourth quarter of 2013, sales to the European
markets represented 5.5% of net revenue, sales to the Americas
represented 32.1% of net revenue, and sales to Asia and all other
markets represented 62.4% of net revenue, compared to 9.5%, 46.9% and
43.6%, respectively, in the third quarter of 2013 and 40.6%, 20.0% and
39.4%, respectively, in the fourth quarter of 2012.
Q4 2013 Q3 2013 Q4 2012
US$M % US$M % US$M %
Europe 28.7 5.5 46.4 9.5 119.7 40.6
Americas 167.0 32.1 230.3 46.9 58.8 20.0
Asia and others 323.8 62.4 214.2 43.6 116.3 39.4
Total 519.5 100.0 490.9 100.0 294.8 100.0
Gross profit in the fourth quarter of 2013 was $101.3 million,
compared to $100.2 million in the third quarter of 2013 and $14.9
million in the fourth quarter of 2012. The slight sequential increase
in gross profit was primarily due to higher module shipments and a $14
million reduction in warranty cost to reflect the general decline in
module prices, which more than off-set the lower contribution from the
Company's total solutions business in the fourth quarter of 2013. The
year-over-year increase in gross profit was primarily due to the
increase in revenue contribution from the Company's higher margin
total solutions business, as well as higher module shipments and lower
module manufacturing cost, which was partially off-set by a slight
decline in module average selling price. Gross margin in the fourth
quarter of 2013 was 19.5%, compared to 20.4% in the third quarter of
2013 and 5.0% in the fourth quarter of 2012.
Total operating expenses were $56.0 million in the fourth quarter of
2013, up 24.5% from $44.9 million in the third quarter of 2013 and
down 47.4% from $106.4 million in the fourth quarter of 2012.
Selling expenses were $28.5 million in the fourth quarter of 2013, up
33.9% from $21.2 million in the third quarter of 2013 and 14.0% from
$25.0 million in the fourth quarter of 2012. The sequential quarterly
increase in selling expenses was primarily due to higher shipping,
salary and credit insurance expenses. The year-over-year increase in
selling expenses was primarily due to higher salary and bonus as well
as higher shipping, credit insurance and rental expenses, partially
offset by lower marketing expenses.
General and administrative expenses were $24.3 million in the fourth
quarter of 2013, up 17.1% from $20.7 million in the third quarter of
2013 and down 69.0% from $78.3 million in the fourth quarter of
2012. The sequential increase in general and administrative expenses
was primarily due to an asset impairment charge of $3.7 million
related to the write-down of the Company's mono-crystalline ingot
furnaces, as well as increased salary expenses, partially off-set by a
$2.2 million decrease in bad debt expenses. The year-over-year
decrease in general and administrative expenses was primarily due to
provisions for bad debt and for an arbitration decision against the
Company totaled approximately $61.2 million in the fourth quarter of
2012.
Research and development expenses were $3.2 million in the fourth
quarter of 2013, compared to $3.0 million in the third quarter of 2013
and $3.1 million in the fourth quarter of 2012.
Operating margin was 8.7% in the fourth quarter of 2013, compared to
11.3% in the third quarter of 2013 and negative 31.0% in the fourth
quarter of 2012. The sequential decline in operating margin was
primarily due to the higher selling expenses, decline in gross margin
as well as the asset impairment charge in the fourth quarter of
2013. The year-over-year increase in operating margin was primarily
due to higher gross margin and lower operating expenses in the fourth
quarter of 2013 compared to the same period in 2012.
Interest expense in the fourth quarter of 2013 was $9.9 million,
compared to $11.8 million in the third quarter of 2013 and $9.9
million in the fourth quarter of 2012. The sequential decrease in
interest expense was primarily due to lower bank charges in the fourth
quarter of 2013.
Interest income in the fourth quarter of 2013 was $2.8 million,
compared to $2.7 million in the third quarter of 2013 and $3.7 million
in the fourth quarter of 2012.
The Company recorded a gain on change in fair value of derivatives of
$8.9 million in the fourth quarter of 2013, compared to a loss of $1.6
million in the third quarter of 2013 and a gain of $2.3 million in the
fourth quarter of 2012. Net foreign exchange loss in the fourth
quarter of 2013 was $18.5 million compared to a net foreign exchange
gain of $2.3 million in the third quarter of 2013 and a net foreign
exchange loss of $10.8 million in the fourth quarter of 2012.
Income tax expense in the fourth quarter of 2013 was $3.7million,
compared to income tax expense of $12.4 million in the third quarter
of 2013 and income tax benefit of $3.3 million in the fourth quarter
of 2012.
Net income attributable to Canadian Solar in the fourth quarter of
2013 was $20.9 million, or $0.39 per diluted share, compared to net
income of $27.7 million, or $0.56 per diluted share, in the third
quarter of 2013, and net loss of $105.0 million, or $2.43 per diluted
share, in the fourth quarter of 2012.
Management's expectations in respect to profitability in the fourth
quarter and the fiscal year 2013 are subject to the final ruling by
the Suzhou Intermediate Court on a contract dispute between Canadian
Solar and LDK as previously disclosed. If the court was to rule
against Canadian Solar and order the Company to pay the award to LDK,
before the company files its Annual Report on Form 20-F in April of
2014, Canadian Solar may have to make a provision for the fourth
quarter of 2013 and the full year of 2013, which would impact the
Company's profitability.
Financial Condition
As of December 31, 2013, the Company had $679.4 million of cash, cash
equivalents and restricted cash, compared to $681.7million as of
September 30, 2013.
On February 18, 2014, the Company closed a concurrent offering of
3,194,700 common shares and US$150 million in aggregate principal
amount of 4.25% convertible senior notes due 2019 and received
aggregate net proceeds of approximately US$255.7 million after
deducting discounts and commissions but before offering expenses.
Accounts receivable, net of allowance for doubtful accounts, at the
end of the fourth quarter of 2013 were $280.7 million, compared to
$271.8 million at the end of the third quarter of 2013. Accounts
receivable turnover was 59 days in the fourth quarter of 2013,
compared to 62 days in the third quarter of 2013.
Inventories at the end of the fourth quarter of 2013 were $231.2
million, compared to $220.6 million at the end of the third quarter of
2013. Inventory turnover was 53 days in the fourth quarter of 2013,
compared to 55 days in the third quarter of 2013.
Accounts and notes payable at the end of the fourth quarter of 2013
were $639.4 million, compared to $589.7 million at the end of the
third quarter of 2013.
Short-term borrowings at the end of the fourth quarter of 2013 were
$778.5 million, compared to $801.6 million at the end of the third
quarter of 2013. Long-term debt at the end of the fourth quarter of
2013 was $151.4 million, compared to $190.5 million at the end of the
third quarter of 2013. Short-term borrowings and long-term debt
directly related to utility-scale solar power projects totaled $201.9
million at the end of fourth quarter of 2013.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar,
remarked: "We are very pleased to have achieved our goal to return the
Company to profitability in 2013, underscoring the successful
execution of our strategy of expanding our higher margin total
solutions business, and seeking profitable growth in our module
business, rather than simply competing on MW volume and price. We
continue to capitalize on our high-visibility contracted late-stage
solar project pipeline, which increased to 1.3 GW DC, even after
completing construction of over 200 MW in 2013. Reflecting our
geographic diversity, our late-stage solar project pipeline, including
those projects currently in construction comprises approximately 477
MW DC in Canada, 329 MW DC in Japan, 164 MW DC in the U.S. and 290 MW
DC in China. We also have confidence in the ongoing development of our
early to mid-state project pipeline, which now exceeds 3.2 GW DC, and
we hope many of these opportunities will be converted into real
projects in the next 2-3 years. Finally, while our growth in 2013 was
led by our total solutions business, we had a positive contribution
from our solar module business due to global capacity rationalization,
stable average selling prices and robust demand across many key
geographies."
Michael G. Potter, Senior Vice President and Chief Financial Officer
of Canadian Solar, commented: "We achieved a 19.5% gross margin in the
fourth quarter of 2013, exceeding our previously upwardly revised
guidance of 16% to 18%, with total solar module shipments of 621
MW. We remain focused on driving profitable growth, while prudently
investing in support of our solar project pipeline growth. We exited
the fourth quarter of 2013 with one of the industry's strongest and
most flexible balance sheets. We have taken advantage of the favorable
financing environment to raise funds and lay the foundation for future
sustained, long-term profitable growth. Our strong cash position helps
us to fund the development of our existing project pipeline and to
take advantage of numerous other actionable project opportunities."
Utility Scale Project Pipeline Update
At the end of January of 2014, the Company had a pipeline of late
stage utility-scale solar projects totaling approximately 1.3 GW
DC. These projects include owned and joint-venture projects as well as
projects where we provide engineering, procurement and construction
(EPC) services.
In Canada, during the fourth quarter of 2013, the Company closed the
sale of the Mississippi Mills project in Ontario, Canada to
TransCanada for over C$61.0 million. In addition, one project, William
Rutley is in commercial operation pending completion of the sale to an
investor. The Company's late stage solar project pipeline in Ontario,
Canada, including those in construction now stands at, approximately
477 MW DC, including owned projects and EPC service contracts, which
combined represent a revenue opportunity of over C$1.7 billion once
the projects are built and connected to the grid.
The following table summarizes the status of the Company's Ontario,
Canada solar projects:
Canada Owned Projects MW DC Status Expected COD1 End Buyer
Liskeard 1, 3 and 4 39.6 In Construction 2014 Q2 TransCanada
William Rutley 13.9 Commercial Operation 2012 Q4 TransCanada
Alfred 13.6 Permitting 2015 Q2 TransCanada
Foto Light LP 14.0 Engineering 2014 Q4 TBD
Illumination LP 14.0 Engineering 2014 Q4 DIF
Little Creek 11.9 In Construction 2014 Q1 BluEarth
Gold Light LP 14.0 Engineering 2014 Q4 DIF
Beam Light LP 14.0 Engineering 2014 Q4 DIF
Earth Light LP 14.0 Permitting 2015 Q1 Concord
Lunar Light LP 14.0 Permitting 2015 Q2 BluEarth
Discovery Light LP 11.6 Engineering 2014 Q4 TBD
Sparkle Light LP 14.0 In Construction 2014 Q3 BluEarth
GlenArm LP 14.0 Engineering 2014 Q4 DIF
Good Light LP 14.0 In Construction 2014 Q2 BluEarth
Aria LP 12.6 Permitting 2015 Q1 Concord
Ray Light LP 14.0 In Construction 2014 Q3 Concord
Mighty Solar LP 14.0 In Construction 2014 Q2 Concord
City Lights LP 14.0 Permitting 2014 Q4 TBD
Highlight (Val Caron) 14.0 In Construction 2014 Q2 Concord
Oro-Medonte 4 11.5 Engineering 2014 Q4 BlackRock
Taylor Kidd 14.0 In Construction 2014 Q2 BlackRock
Demorestville 14.0 In Construction 2014 Q1 BlackRock
Westbrook 14.0 In Construction 2014 Q2 BlackRock
Canada EPC Projects MW DC Status COD End Buyer
Penn Energy 39.0 In Construction 2014 Q2/3 Penn Energy
Grand Renewable Ph. I (Samsung) 129.8 In Construction 2015 Q1 GRSP
Gross Total: 507.5
Percent of Completion Revenue Recognized in 2013 30.2 Penn Energy, Taylor Kidd, Demorestville, Samsung
Net Total Outstanding 477.3
(1) Commercial Operation Date.
In Japan, at the end of January of 2014, the Company's late stage,
utility-scale solar power project pipeline reached 329 MW DC. The
Company expects to begin construction of its first Japanese solar
power project in the first half of 2014.
The following table summarizes the status of the Company's solar
project pipeline in Japan:
Japan Project Pipeline MW dc FiT (Yen/kWh) COD
Project 1 44.5 40 2016
Project 2 29.7 36 2015
Project 3 25.2 40 2015
Project 4 1.2 40 2014
Project 5 3.4 40 2014
Project 6 25.0 36 2015
Project 7 20.0 36 2015
Project 8 20.0 36 2015
Project 9 40.0 36.0/40.0 2016
Project 10 1.1 40 2014
Project 11 1.6 36 2014
Project 12 0.9 40 2014
Project 13 2.0 36 2014
Project 14 2.0 40 2014
Project 15 2.0 36 2014
Project 16 1.6 40 2014
Project 17 1.7 36 2014
Project 18 2.0 36 2014
Project 19 10.0 36 2015
Project 20 2.0 36 2014
Project 21 3.5 40 2014
Project 22 39.4 36 2015
Project 23 10.0 36 2015
Project 24 7.0 36 2015
Project 25 16.0 36 2015
Project 26 17.0 36 2015
Total 328.8
In the United States, during the fourth quarter of 2013, the Company
completed construction of three solar power plants totaling
approximately 24 MW DC. At the end of the fourth quarter of 2013, the
Company's utility-scale project pipeline totals approximately 164 MW
DC.
The following table represents the status of the Company's United
States solar project pipeline:
U.S. Project Pipeline MW dc State Status COD
TA Acacia LLC 28.4 CA Construction 2014-Q3
Gasna 31P LLC 19.5 CA Design and Permitting 2015-Q2
Indigo Ranch Project LLC 5.6 CA Design and Permitting 2014-Q3
New Bern Farm LLC 6.2 NC Construction 2014-Q2
Mile Farm LLC 6.2 NC Design and Permitting 2014-Q2
Roxboro Farm LLC 6.2 NC Construction 2014-Q1
Vickers Farm LLC 2.5 NC Design and Permitting 2014-Q3
CSI Project Holdco LLC - P4 6.5 NC Construction 2014-Q2
CSI Project Holdco LLC - P1 6.5 NC Construction 2014-Q1
CSI Project Holdco LLC - P3 6.5 NC Construction 2014-Q4
CSI Project Holdco LLC - P2 6.5 NC Design and Permitting 2014-Q3
SE Solarne2.4.7 4 Various Design and Permitting 2014-Q3
SH Solarne2,3,4,6,7 5.5 Various Design and Permitting 2014-Q3
Other Projects 54 Various Design and Permitting 2014-15
Total 2014-15 164.1
In China, the Company built and connected to the grid a 30 MW DC solar
power plant in the western part of China and a 10MW DC project in the
Jiangsu Province. Exiting 2013 the Company has identified a pipeline
of late stage utility -scale projects in China totaling 290 MW, as
follows:
China Project Opportunity 2014 -15
Province (MW dc) Feed In Tariff
Jiangsu 30 MW RMB 1.0/kWh and RMB 0.2/kWh (Prov.)
Shandong 40 MW RMB 1.0/kWh and RMB 0.2/kWh (Prov.)
Hebei 40 MW RMB 0.95
Shanxi 50 MW RMB 0.95
Inner Mongolia 50MW RMB 0.90
Qinghai 50 MW RMB 0.90
Xinjiang 30 MW RMB 0.90 to 0.95/kWh
Total 290 MW
Business Outlook
The Company's business outlook is based on management's current views
and estimates with respect to operating and market conditions, its
current order book, global and local financing environment as well as
uncertainty relating to customer final demand and solar project
construction schedule. Management's views and estimates are subject to
change without notice.
For the first quarter of 2014, the Company expects module shipments to
be in the range of approximately 470 MW to 490 MW. Total revenue for
the first quarter of 2014 is expected to be in the range of $415
million to $430 million, with gross margin expected to be between 14%
and 16%.
Management continues to see strong demand for the Company's products
in the first quarter of 2014, as the seasonality in Chinese market was
more than compensated by the increase in demand from Japan and the
U.S. However, longer shipping time to these markets will push some
revenue to the second quarter of 2014. In addition, the production
output from the Company's module factories in China was low during the
Chinese New Year holiday period.
Meanwhile, the Company's revenue and gross margin in the first quarter
of 2014 are expected to be adversely affected by the severe winter
conditions in North America, which delayed construction and
recognition of approximately $100.0 million in revenue from some of
its utility-scale projects in Canada. The Company expects to recognize
this revenue in the second and third quarter of 2014. The expected
gross margin in the first quarter of 2014 is adversely impacted by
approximately 100 basis points (1.0 due to the recently reported
fire incident at the Company's cell plant in Suzhou. The Company
expects to fully recover its losses from its property and business
interruption insurance in later quarters.
For the full year 2014, the Company expects annual module shipments to
be in the range of 2.5 GW to 2.7 GW, including 400 MW to 500 MW of
project recognition. In addition, the Company expects to build and
hold up to 250MW of project assets during 2014. The Company expects
that its net revenue for 2014 will be in the range of approximately
$2.7 billion to $2.9 billion, with approximately 50% of revenue being
derived from its total solutions business.
The Company's Canadian and U.S. project revenue recognition is
expected to be back-end loaded in 2014 due to permitting and
construction schedule as well as US GAAP accounting rules which, for
most Canadian projects, only allow revenue recognition after
commercial operation date (COD) and the transfer of ownership to end
customers. The estimated COD of all of the Company's late-stage
projects is disclosed in this press release to provide
better granularity to investors.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar,
remarked: "We are excited about our outlook for 2014, given the size
of our existing project pipeline, the expected growth in the broader
solar market and the industry's continued capacity rationalization. We
expect China, Japan, Canada, the U.S. and India to remain healthy
markets for us through 2014. We are incrementally more positive on
China because of its market size and improved payment terms and
pricing. In addition, we see more opportunities in South Africa, the
Middle East, and South America. Customers and investors want to
partner with us because we are one of the largest and most successful
companies in the solar space, with a strong balance sheet, a proven
track record of execution, and offering integrated total solar
solutions."
Recent Developments
On February 26, 2014, Canadian Solar announced that Natixis, New York
Branch/Norddeutsche Landesbank Girozentrale, New York
Branch/Cooperative Centrale Raiffeisen-Boerenleenbank B.A./"Rabobank
Nederland", New York Branch, will provide the Company with up to C$52
Million, in non-recourse, construction plus term financing. The loan
facility has a maturity term of construction plus 10 years and will be
used to finance the previously announced 10MW (ac) utility-scale solar
power project "Glenarm", which is being acquired by DIF Infra 3 RE
Canada (Ltd).
On February 24, 2014, Canadian Solar announced that it was awarded a
module supply agreement to provide 18 MW of photovoltaic modules to
Hitachi, Ltd. for a solar power project in Japan. The project is owned
by Eurus Energy Holdings Corporation with Hitachi as its EPC
contractor.
On February 24, 2014, Canadian Solar announced that it was selected by
Strata Solar to power five utility scale solar projects totaling 30
MW.
On February 18, 2014, Canadian Solar announced the closing of its
offering of 3,194,700 common shares including 416,700 common shares
pursuant to the full exercise by the underwriters of their
over-allotment option, and the concurrent offering of $150 million in
aggregate principal amount of 4.25% convertible senior notes due 2019
(the "Notes"), including the full exercise by purchasers of their
option to acquire $20.0 million of additional Notes. The Company
received net proceeds of approximately $255.7 million from these
offerings, after deducting discounts and commissions but before
offering expenses.
On February 6, 2014, Canadian Solar announced that its subsidiary,
Canadian Solar Solutions Inc., entered into an agreement with a fund
managed by BlackRock ("BlackRock") pursuant to which, whereby
BlackRock will acquire the Company's Oro-Medonte solar power plant
totaling 10 MW AC at a valuation comparable to other recent project
sales completed by Canadian Solar on a per megawatt basis in the
Ontario market. This transaction follows BlackRock's previous
acquisitions of the Company's Demorestville, Taylor Kidd and Westbrook
solar power plants in Ontario, Canada.
On January 30, 2014, Canadian Solar, announced that it shipped a
record of 508 MW of PV modules under its own Canadian Solar brand to
Japan thus becoming the largest foreign PV module brand in the
Japanese market with an estimated 7% market share in 2013.
On January 29, 2014, Canadian Solar announced that it has been
selected as the sole PV module supplier for a 2.1MW solar power plant
at the Delhi International Airport in India.
On January 27, 2014, Canadian Solar announced that its subsidiary,
Canadian Solar Solutions Inc., entered into an agreement with a fund
managed by BlackRock pursuant to which BlackRock will acquire the
Company's Westbrook 10MW AC utility-scale solar power plant in
Kingston, Ontario at a valuation comparable to other recent project
sales completed by Canadian Solar on a per megawatt basis in the
Ontario market.
On January 27, 2014, Canadian Solar announced it was selected by
BELECTRIC Inc. to power four new solar power projects, totaling 7.8
MW, in San Bernardino County, Southern California.
On January 22, 2014, Canadian Solar announced that its subsidiary,
Canadian Solar Solutions Inc., signed a 10 MWac module supply
agreement with Silvercreek Solar Park Inc. ("Silvercreek"), pursuant
to which the Company will supply Silvercreek with Ontario-made modules
for Silver Creek's first, ground-mounted utility-scale solar power
plant in Ontario, Canada.
On January 21, 2014, Canadian Solar announced that the Company's PV
modules achieved the highest PTC ratings amongst all major poly module
manufacturers.
On January 9, 2014, Canadian Solar announced the successful completion
and grid connection of a 10 MW ground mounted solar power project in
Sihong County of Jiangsu Province in eastern China. This project was
developed by CSI Solar Power (China) Inc., a subsidiary of Canadian
Solar, with Gaochuangte New Energy as the EPC contractor.
On January 7, 2014, Canadian Solar announced it was selected to supply
84,480 solar modules to National Renewable Energy Corporation
(NARENCO) for four utility scale solar projects totaling 25.3 MW in
Wayne and Duplin counties of North Carolina.
On January 6, 2014, Canadian Solar announced the successful completion
and grid connection of a 30 MW ground mounted solar power project in
Tumushuke City, Xinjiang Uyghur Autonomous Region in Western
China. This project was developed by CSI Solar Power (China) Inc., a
subsidiary of Canadian Solar Inc., with Gaochuangte New Energy as the
EPC contractor.
On January 2, 2014, Canadian Solar announced that its wholly owned
subsidiary, Canadian Solar Solutions Inc., completed the sale of
Mississippi Mills, a 10 megawatt AC solar power plant valued at over
C$61.0 million to TransCanada Corporation (TSX, NYSE: TRP)
("TransCanada") on December 31, 2013.
On December 23, 2013, Canadian Solar announced that its subsidiary,
CSI Holdco LLC, sold two utility-scale solar power plants totaling 4.4
MW DC (3 MW AC) to PSEG's subsidiary, PSEG Solar Source. The plants
have a 20-year electricity off-take agreement with PG&E.
On December 16, 2013, Canadian Solar announced that its modules were
selected for the Clovis Unified School District solar installation in
Clovis, California.
On December 12, 2013, Canadian Solar announced that it was awarded a
module supply agreement to provide Zhenfa New Energy Science &
Technology Co., Ltd. with PV modules totaling 100 MW for three solar
power projects located in Gansu Province and one solar project in
Inner Mongolia Autonomous Region of China.
On December 9, 2013, Canadian Solar announced that it signed a $40
million loan agreement with Harvest North Star Capital. The loan
facility will be used to finance the development of several
ground-mounted solar power projects in Japan totaling around 145.1 MW
DC, with approximately 40-50 MW DC expected to start construction
during the first half of 2014.
On December 9, 2013, Canadian Solar announced it is the supplier of
8.7 MW of its MaxPower CS6X Solar Modules to EOSOL Mexico for a ground
mounted solar project located in Durango, Mexico. The project
represents Mexico's second largest PV project to date.
On December 2, 2013, Canadian Solar announced that National Bank of
Canada will provide the Company with up to C$35 million, in short-term
construction financing. This credit facility will be used to finance
the construction of one of the Company's solar projects in Ontario,
Canada.
On November 29, 2013, Canadian Solar announced that the Jiangsu Suzhou
Intermediate Court issued a civil decision that vacated its decision
in May 2013 (the "May Decision"), which dismissed a request by LDK
Solar Co., Ltd. ("LDK") to enforce an arbitration award in LDK's
ongoing dispute with the Company and ruled that the case be
re-adjudicated. The decision was issued following a request for
re-adjudication by the Jiangsu Provincial High Court, which reviewed
the May Decision.
On November 18, 2013, Canadian Solar announced that its subsidiary,
Canadian Solar Solutions Inc., entered into a sales agreement with a
fund managed by DIF pursuant to which DIF will acquire from Canadian
Solar four utility-scale solar power plants located in Ontario,
Canada, totaling 40 MWAC at a valuation comparable to other recent
project sales completed by the Company in the Ontario market.
Conference Call Information
The Company will hold a conference call on Wednesday, March 5, 2014 at
8:00 a.m. U.S. Eastern Standard Time (9:00 p.m., March 5, 2014 in Hong
Kong) to discuss the Company's fourth quarter results and its business
outlook. The dial-in phone number for the call is +1-866-318-8615 or
+1-617-399-5134, with passcode 60564093. A 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 4 hours after the conclusion of
the live call and until 11:00 p.m. on March 12, 2014, U.S. Eastern
Standard Time (11:00 a.m., March 13, 2014 in Hong Kong) and can be
accessed by dialing +1-617-801-6888 or +1-888-286-8010 and entering
the passcode 72091072. A webcast replay will also be available at
www.canadiansolar.com.
About Canadian Solar Inc.
Founded in 2001 in Canada, Canadian Solar Inc. (NASDAQ: CSIQ) is one
of the world's largest and foremost solar power companies. As a
leading vertically integrated provider of solar modules, specialized
solar products and solar power plants with operations in North
America, South America, Europe, Africa, the Middle East, Australia and
Asia, Canadian Solar has delivered more than 6 GW of premium quality
solar modules to customers in over 70 countries. Canadian Solar is
committed to improve the environment and dedicated to provide advanced
solar energy products, solutions and services to enable sustainable
development around the world. For more information, please visit
www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements:
Certain statements in this press release regarding the Company's
expected future shipment volumes, gross margins, 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, Japan, the U.S. and China; 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 26, 2013. 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 Twelve Months Ended
Item December 31 September 30 December 31 December 31 December 31
2013 2013 2012 2013 2012
Net revenues 519,469 490,897 294,839 1,654,356 1,294,829
Cost of revenues 418,213 390,686 279,969 1,378,661 1,204,468
Gross profit 101,256 100,211 14,870 275,695 90,361
Selling expenses 28,457 21,248 24,965 88,426 91,053
General and administrative expenses 24,268 20,722 78,260 44,768 128,826
Research and development expenses 3,234 2,968 3,128 11,685 12,998
Total operating expenses 55,959 44,938 106,353 144,879 232,877
Income (loss) from operations 45,297 55,273 (91,483) 130,816 (142,516)
Interest expenses (9,948) (11,769) (9,894) (46,244) (53,305)
Interest income 2,777 2,749 3,661 11,973 13,360
Gain (loss) on change in foreign currency derivatives 8,936 (1,608) 2,267 10,764 (4,369)
Foreign exchange gain (loss) (18,532) 2,279 (10,799) (51,469) (10,707)
Investment loss - - (1,082) - (1,082)
Others 428 - - 428 -
Income (loss) before income taxes 28,958 46,924 (107,330) 56,268 (198,619)
Income tax benefit (expenses) (3,687) (12,383) 3,291 (7,640) 5,433
Equity in loss of unconsolidated investees (1,216) (1,188) (826) (3,064) (1,969)
Net income (loss) 24,055 33,353 (104,865) 45,564 (195,155)
Less: Net income attributable to non-controlling interest 3,108 5,661 120 13,906 313
Net income (loss) attributable to Canadian Solar Inc. 20,947 27,692 (104,985) 31,658 (195,469)
Earnings (Loss) per share-basic $0.41 $0.58 ($2.43) $0.68 ($4.53)
Shares used in computation-basic 50,494,856 47,435,751 43,236,769 46,306,739 43,190,778
Earnings (Loss) per share-diluted $0.39 $0.56 ($2.43) $0.63 ($4.53)
Shares used in computation-diluted 53,317,482 49,567,538 43,236,769 50,388,284 43,190,778
Canadian Solar Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(In Thousands of US Dollars)
Three Months Ended Twelve Months Ended
December 31 September 30 December 31 December 31 December 31
2013 2013 2012 2013 2012
Net Income(loss) 24,055 33,353 (104,865) 45,564 (195,155)
Other comprehensive income, net of tax:
Foreign currency translation adjustments (3,420) 5,369 2,584 1,877 5,505
Comprehensive income (loss) 20,635 38,722 (102,281) 47,441 (189,650)
Less: comprehensive income attributable to non-controlling interest 2,115 5,908 168 12,667 579
Comprehensive income (loss) attributable to Canadian Solar Inc. 18,520 32,814 (102,449) 34,774 (190,229)
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheet
(In Thousands of US Dollars)
December 31, 2013 December 31, 2012
Assets
Current assets
Cash and cash equivalents 228,250 141,968
Restricted cash 451,153 422,357
Accounts receivable trade, net 280,694 254,906
Accounts receivable, unbilled 13,947 5,230
Amount due from related parties 4,689 9,977
Inventories 231,158 274,456
Value added tax recoverable 15,705 14,483
Advances to suppliers, net 42,028 28,998
Foreign currency derivative assets 7,323 1,351
Project assets -current 344,162 180,437
Prepaid expenses and other current assets 100,247 108,041
Total current assets 1,719,356 1,442,204
Property, plant and equipment, net 407,605 469,643
Deferred tax assets 62,950 39,082
Prepaid land use right 18,776 18,629
Investments in affiliates 34,070 26,728
Intangible assets, net 5,657 4,328
Project assets -non-current 160,836 218,710
Other non-current assets 44,485 39,989
TOTAL ASSETS 2,453,735 2,259,313
Current liabilities:
Short-term borrowings 778,513 858,927
Accounts and notes payable 639,376 461,631
Amounts due to related parties 19,872 5,037
Other payables 101,266 104,783
Advances from customers 75,328 18,659
Foreign currency derivative liabilities 597 365
Other current liabilities 163,407 90,848
Total current liabilities 1,778,359 1,540,250
Accrued warranty costs 40,605 58,334
Long-term borrowings 151,392 214,563
Liability for uncertain tax positions 17,192 14,804
Deferred tax liabilities - non current 24,044 56,152
Loss contingency accruals 29,698 28,461
Total liabilities 2,041,290 1,912,564
Redeemable non-controlling interest 10,948 45,166
Common shares 561,242 502,562
Additional paid-in capital (32,121) (38,296)
Accumulated deficit (192,503) (224,162)
Accumulated other comprehensive income 53,910 50,795
Total Canadian Solar Inc. shareholders' equity 390,528 290,899
Non-controlling interest 10,969 10,684
Total equity 401,497 301,583
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' EQUITY 2,453,735 2,259,313
SOURCE Canadian Solar Inc.
-0- 03/05/2014
/CONTACT: Ed Job, CFA, Director, Investor Relations, Canadian Solar Inc., Investors@canadiansolar.com; or David Pasquale, Global IR Partners, +1-914-337-8801, csiq@globalirpartners.com
/Web Site: http://www.canadiansolar.com
(NASDAQ-NMS:CSIQ) /
CO: Canadian Solar Inc.; TransCanada Corporation; DIF Infra 3 RE Canada (Ltd); Natixis; Norddeutsche Landesbank Girozentrale; Cooperative Centrale Raiffeisen-Boerenleenbank B.A.; Hitachi, Ltd.; Eurus Energy Holdings Corporation; Strata Solar; Canadian Solar Solutions Inc.; BlackRock; Delhi International Airport; BELECTRIC
ST: Canada Ontario
IN: OIL UTI ENV ALT GRE
SU: CCA ERN ERP
PRN
-- CN77129 --
0000 03/05/2014 11:59:00 EDT http://www.prnewswire.com
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.