SunPower Reports Third Quarter 2015 Results

SAN JOSE, Calif., Oct. 28, 2015 /PRNewswire/ -- SunPower Corp. (NASDAQ: SPWR) today announced financial results for its third fiscal quarter ended Sept. 27, 2015.

SunPower Logo.

 

($ Millions, except percentages and per-share data)

3rd Quarter

2015

2nd  Quarter

2015

3rd Quarter

2014

GAAP revenue

$380.2

$381.0

$662.7

GAAP gross margin

16.5%

18.6%

16.4%

GAAP net income (loss)

($56.3)

$6.5

$32.0

GAAP net income (loss) per diluted share

($0.41)

$0.04

$0.20

Non-GAAP revenue1

$441.4

$376.7

$704.2

Non-GAAP gross margin1

17.7%

17.6%

16.7%

Non-GAAP net income1

$20.5

$27.2

$46.4

Non-GAAP net income per diluted share1

$0.13

$0.18

$0.30

EBITDA1

$54.2

$63.6

$85.5

   

1

Information about SunPower's use of non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP Financial Measures" below.

 

"Our strong quarterly results reflect the continued success of our customer first, complete solution strategy as we executed well on our project commitments and exceeded our key financial targets for the quarter," said Tom Werner, SunPower president and CEO.  "Demand trends in both the power plant and distributed generation segments remain robust and we are well positioned to capitalize on positive market fundamentals for 2016.   Operationally, we met our cell and balance of systems cost targets and shipments of our industry leading technology now exceed one million cells per day.  With Fab 4 scheduled for large volume production next year, we believe we will have the capacity to meet customer demand for our high efficiency, high quality solutions.

"In the power plant segment, we successfully met our commitments and further built out our holdco asset base in preparation for project drop downs to 8point3 Energy Partners.  Specifically, our 135-megawatt (MW) Quinto project, which is now owned by 8point3 Energy Partners, remains on plan for non-GAAP revenue recognition in the fourth quarter.  Additionally, we completed the construction of our 8-MW Riverside Public Utilities project as well as expanded our international footprint with the completion of our 12-MW Roc du Doun power plant in France and 40 MW of projects developed for Apple in China.   Finally, we were awarded a 20-MW project for Sulphur Springs Valley Electric Cooperative in Arizona, scheduled for delivery in 2016. 

"We also executed well in our distributed generation business as demand for our industry leading solutions remained solid during the quarter.  In our commercial segment, our new and repeat customer bookings trend remained positive and we see strong fundamentals continuing through 2016.  Our 13-MW University of California Davis project, owned by 8point3 Energy Partners, achieved commercial operation date in September and contributed to our strong financial performance for the quarter.  We also launched our Helix platform, the world's first fully-integrated solar solution for commercial customers.  Designed for the rooftop, carport and commercial ground-mount markets, Helix delivers significantly lower costs and improved reliability while accelerating installation times.  When combined with our proprietary energy information services offering, this solution gives customers unprecedented visibility and control over their solar energy production and consumption.

"Our residential business was our best performing segment for the quarter.  In particular, North American demand remains high as customers continue to choose SunPower for our industry leading quality, reliability and performance.  As a result, non-GAAP revenue and gross margin exceeded our forecasts.  Additionally, our PV-integrated residential microinverter offering is gaining significant traction in the marketplace and we continue to invest in our next generation solutions including building out our Smart Energy platform," Werner concluded.

"The solid execution of our downstream strategy enabled us to post strong financial results for the quarter, including generating $54 million in EBITDA," said Chuck Boynton, SunPower CFO.  "In relation to working capital, we increased inventory in the third quarter in preparation to meet our significant 2016 backlog while adding assets to our holdco asset base.  With solid industry fundamentals, a diversified end channel strategy, new product introductions and further commitment to our manufacturing cost reduction roadmaps, we are well positioned for profitable growth in 2016."

Third quarter fiscal 2015 non-GAAP results include net adjustments that, in the aggregate, increase net income by $76.8 million, including $19.4 million related to 8point3 Energy Partners, ($0.5) million related to utility and power plant projects, ($7.5) million related to the First Philippine Solar Corporation arbitration ruling, $14.9 million related to stock-based compensation expense, $1.0 million related to our November 2014 Restructuring Plan, $1.2 million related to the 8point3 Energy Partners Initial Public Offering , $1.3 million related to other adjustments, and $47.0 million related to tax effect.

Financial Outlook

The company's fourth quarter fiscal 2015 non-GAAP guidance is as follows: revenue of $1.25 billion to $1.30 billion, gross margin of 28 percent to 29 percent, EBITDA of $300 to $325 million and megawatts deployed in the range of 275 MW to 305 MW.  On a GAAP basis, the company expects revenue of $300 million to $350 million, gross margin of 5 percent to 6 percent and net loss per diluted share of $1.25 to $1.15.  Fourth quarter 2015 GAAP guidance includes the impact of the company's holdco strategy and deferrals due to real estate accounting. 

For fiscal year 2015, the company's non-GAAP expectations are as follows:  revenue of $2.50 billion to $2.55 billion, gross margin of 23 percent to 24 percent, net income per diluted share of $1.95 to $2.05, capital expenditures of $250 million to $300 million and gigawatts deployed in the range of 1.15 GW to 1.18 GW.  On a GAAP basis, the company expects 2015 revenue of $1.50 billion to $1.55 billion, gross margin of 15 percent to 16 percent and net loss per diluted share of $1.70 to $1.60.   Fiscal year 2015 GAAP guidance includes the impact of the company's holdco strategy and deferrals due to real estate accounting.

The company is also raising its fiscal year 2015 EBITDA guidance to $475 million to $500 million, an increase from its previous guidance of $425 million to $475 million

The company will host a conference call for investors this afternoon to discuss its third-quarter 2015 performance at 1:30 p.m. Pacific Time.  The call will be webcast and can be accessed from SunPower's website at http://investors.sunpower.com/events.cfm.

SunPower will provide its fiscal year 2016 outlook at its Analyst Day to be held on November 12, 2015 in New York City starting at 9:00 a.m. Eastern Time.  Please note that the entire event will be webcast and relevant materials will be posted to the company's website before the event.  To register for and listen to the webcast, investors are encouraged to visit the company's Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm.

This press release contains both GAAP and non-GAAP financial information.  Non-GAAP figures are reconciled to the closest GAAP equivalent categories in the financial attachment of this press release.  Please note that the company has posted supplemental information and slides related to its third-quarter 2015 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpower.com/events.cfm.  The capacity of power plants in this release is described in approximate megawatts on a direct current (dc) basis unless otherwise noted.

About SunPower

As one of the world's most innovative and sustainable energy companies, SunPower Corp. (NASDAQ: SPWR) provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower's more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) expectations concerning the effect that 8point3 Energy Partners will have on our revenues cost of capital, future cash flows and the value we are able to generate for our shareholders; (b) anticipated construction timelines and milestones for certain of our commercial projects and for our major power plant projects, such as the Quinto project; (c) expansion of our international footprint and expanding our manufacturing capacity, including related to Fab 4, and our ability to meet customer demand; (d) the strength of the solar market and in particular, current and expected fourth quarter fiscal 2015 and fiscal year 2016 customer demand in our commercial and residential segments including in new and repeat bookings; (e) our positioning for long-term profitability; (f) strategically managing cash; (g) reducing operating expenses; (h) generating free cash flow; (i) expected benefits of our new Helix platform; (j) the expected adoption and benefits of our Smart Energy solutions; (k) fourth quarter fiscal 2015 non-GAAP guidance, including non-GAAP revenue, gross margin, EBITDA, and MW deployed; and fourth quarter fiscal 2015 GAAP guidance, including revenue, gross margin, and net loss per diluted share; (l) fiscal year 2015 non-GAAP guidance, including non-GAAP revenue, gross margin, capital expenditures, EBITDA, net income per diluted share, and GW deployed; and (m) fiscal year 2015 GAAP guidance, including GAAP revenue, gross margin, and net loss per diluted share.  These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the industry and downward pressure on average selling prices; (2) our liquidity, substantial indebtedness, and our ability to obtain additional financing for our projects and our customers; (3) risks relating to our residential lease business, including risks of customer default, challenges securing lease financing, and declining conventional electricity prices; (4) our ability to meet our cost reduction targets; (5) regulatory changes and the availability of economic incentives promoting use of solar energy; (6) challenges inherent in constructing and maintaining certain of our large projects, such as the Quinto project; (7) the success of our ongoing research and development efforts and our ability to commercialize of new products and services, including products and services developed through strategic partnerships; (8) fluctuations in our operating results; (9) maintaining or increasing our manufacturing capacity, containing manufacturing costs, and other manufacturing difficulties that could arise; (10) challenges managing our joint ventures and partnerships; (11) challenges executing on our holdco and YieldCo strategies, including the risk that 8point3 Energy Partners may be unsuccessful; (12) fluctuations or declines in the performance of our solar panels and other products and solutions; and (13) fluctuations or declines in the prices of conventional electricity.  A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors."  Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com.  All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.

SUNPOWER CORPORATION

 CONSOLIDATED BALANCE SHEETS 

 (In thousands) 

 (Unaudited) 

       
 

Sep. 27,

 

Dec. 28,

 

2015

 

2014

Assets

     

Current assets:

     

Cash and cash equivalents

$     502,881

 

$     956,175

Restricted cash and cash equivalents, current portion

24,957

 

18,541

Accounts receivable, net

207,073

 

504,316

Costs and estimated earnings in excess of billings

39,069

 

187,087

Inventories

349,615

 

208,573

Advances to suppliers, current portion

73,303

 

98,129

Project assets - plants and land, current portion

562,699

 

101,181

Prepaid expenses and other current assets

279,055

 

328,845

Total current assets

2,038,652

 

2,402,847

       

Restricted cash and cash equivalents, net of current portion

45,764

 

24,520

Restricted long-term marketable securities

6,577

 

7,158

Property, plant and equipment, net

681,380

 

585,344

Solar power systems leased and to be leased, net

492,149

 

390,913

Project assets - plants and land, net of current portion

18,141

 

15,475

Advances to suppliers, net of current portion

306,554

 

311,528

Long-term financing receivables, net

300,236

 

269,587

Goodwill and other intangible assets, net

112,570

 

37,981

Other long-term assets

392,302

 

300,229

Total assets

$  4,394,325

 

$  4,345,582

       

Liabilities and Equity

     

Current liabilities:

     

Accounts payable

$     444,045

 

$     419,919

Accrued liabilities

533,699

 

331,034

Billings in excess of costs and estimated earnings

79,472

 

83,440

Short-term debt

20,523

 

18,105

Convertible debt, current portion

-

 

245,325

Customer advances, current portion

27,814

 

31,788

Total current liabilities

1,105,553

 

1,129,611

       

Long-term debt

263,883

 

214,181

Convertible debt, net of current portion

694,214

 

692,955

Customer advances, net of current portion

131,861

 

148,896

Other long-term liabilities

552,120

 

555,344

Total liabilities

2,747,631

 

2,740,987

       

Redeemable noncontrolling interests in subsidiaries

49,833

 

28,566

       

Equity:

     

Preferred stock

-

 

-

Common stock

137

 

131

Additional paid-in capital

2,314,849

 

2,219,581

Accumulated deficit

(619,996)

 

(560,598)

Accumulated other comprehensive loss

(11,364)

 

(13,455)

Treasury stock, at cost

(153,892)

 

(111,485)

Total stockholders' equity

1,529,734

 

1,534,174

Noncontrolling interests in subsidiaries

67,127

 

41,855

Total equity

1,596,861

 

1,576,029

Total liabilities and equity

$  4,394,325

 

$  4,345,582

 

SUNPOWER CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

                   
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27, 

 

Jun. 28, 

 

Sep. 28,

 

Sep. 27, 

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

                   

Revenue:

                 

Residential 

$   163,563

 

$   152,205

 

$   153,947

 

$    471,092

 

$    474,799

Commercial

84,983

 

62,984

 

94,830

 

197,030

 

256,421

Power Plant

131,672

 

165,831

 

413,957

 

533,987

 

1,131,807

Total revenue

380,218

 

381,020

 

662,734

 

1,202,109

 

1,863,027

Cost of revenue:

                 

Residential 

126,411

 

116,979

 

126,552

 

366,162

 

384,241

Commercial

72,337

 

58,842

 

81,231

 

178,059

 

220,483

Power Plant

118,826

 

134,318

 

346,437

 

433,545

 

892,655

Total cost of revenue

317,574

 

310,139

 

554,220

 

977,766

 

1,497,379

Gross margin

62,644

 

70,881

 

108,514

 

224,343

 

365,648

Operating expenses:

                 

Research and development

24,973

 

20,560

 

17,291

 

66,701

 

50,618

Selling, general and administrative

81,109

 

81,520

 

68,394

 

239,843

 

213,821

Restructuring charges

726

 

1,749

 

188

 

6,056

 

(990)

   Total operating expenses

106,808

 

103,829

 

85,873

 

312,600

 

263,449

Operating income (loss)

(44,164)

 

(32,948)

 

22,641

 

(88,257)

 

102,199

  Other income (expense), net

(11,949)

 

6,959

 

(15,366)

 

(22,735)

 

(48,989)

  Income (loss) before income taxes and equity in earnings of unconsolidated investees

(56,113)

 

(25,989)

 

7,275

 

(110,992)

 

53,210

Benefit from (provision for) income taxes

(36,224)

 

659

 

8,320

 

(37,916)

 

2,868

Equity in earnings of unconsolidated investees

5,052

 

1,864

 

1,689

 

9,107

 

5,408

Net income (loss)  

(87,285)

 

(23,466)

 

17,284

 

(139,801)

 

61,486

  Net loss attributable to noncontrolling interests and redeemable noncontrolling interests

30,959

 

29,975

 

14,749

 

80,403

 

49,693

Net income (loss) attributable to stockholders

$   (56,326)

 

$        6,509

 

$     32,033

 

$    (59,398)

 

$    111,179

                   

Net income (loss) per share attributable to stockholders:

                 

- Basic

$        (0.41)

 

$          0.05

 

$          0.24

 

$         (0.44)

 

$           0.87

- Diluted

$        (0.41)

 

$          0.04

 

$          0.20

 

$         (0.44)

 

$           0.72

                   

Weighted-average shares:

                 

- Basic

136,473

 

134,376

 

131,204

 

134,294

 

127,716

- Diluted

136,473

 

156,995

 

167,117

 

134,294

 

158,962

 

SUNPOWER CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

                   
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

                   

Cash flows from operating activities:

                 

Net income (loss)

$  (87,285)

 

$  (23,466)

 

$    17,284

 

$ (139,801)

 

$    61,486

Adjustments to reconcile net income (loss) to net cash used in operating activities:

                 

Depreciation and amortization expense

37,364

 

31,442

 

25,727

 

97,369

 

75,124

Stock-based compensation

14,898

 

14,040

 

13,725

 

42,484

 

41,940

Non-cash interest expense

517

 

571

 

5,499

 

5,768

 

15,991

Equity in earnings of unconsolidated investees

(5,052)

 

(1,864)

 

(1,689)

 

(9,107)

 

(5,408)

Excess tax benefit from stock-based compensation

(18,363)

 

(6,155)

 

-

 

(25,090)

 

-

Deferred income taxes and other tax liabilities

28,480

 

(734)

 

(5,327)

 

22,668

 

(1,893)

Gain on sale of residential lease portfolio to 8point3 Energy Partners LP

-

 

(27,915)

 

-

 

(27,915)

 

-

Other, net

563

 

522

 

405

 

1,940

 

2,619

Changes in operating assets and liabilities, net of effect of acquisitions:

                 

Accounts receivable

226,900

 

32,467

 

(56,025)

 

292,102

 

(45,934)

Costs and estimated earnings in excess of billings

9,380

 

(2,332)

 

(14,393)

 

148,018

 

(14,469)

Inventories

(56,427)

 

(22,654)

 

21,884

 

(187,153)

 

23,860

Project assets

(188,073)

 

(218,624)

 

(31,670)

 

(499,847)

 

(33,338)

Prepaid expenses and other assets

(16,785)

 

54,515

 

(90,581)

 

12,640

 

(149,945)

Long-term financing receivables, net

(39,160)

 

(40,060)

 

(22,263)

 

(108,418)

 

(77,109)

Advances to suppliers

4,706

 

11,191

 

(6,097)

 

29,800

 

(18,578)

Accounts payable and other accrued liabilities

6,243

 

(14,303)

 

16,837

 

(59,841)

 

(15,376)

Billings in excess of costs and estimated earnings

(13,298)

 

3,709

 

100,020

 

(3,968)

 

40,440

Customer advances

(8,527)

 

(2,383)

 

(5,754)

 

(21,009)

 

(13,399)

Net cash used in operating activities

(103,919)

 

(212,033)

 

(32,418)

 

(429,360)

 

(113,989)

Cash flows from investing activities:

                 

Decrease (increase) in restricted cash and cash equivalents

748

 

(9,579)

 

(203)

 

(27,659)

 

(9,550)

Purchases of property, plant and equipment

(63,574)

 

(44,214)

 

(25,190)

 

(132,352)

 

(45,508)

Cash paid for solar power systems, leased and to be leased

(22,587)

 

(22,429)

 

(10,622)

 

(64,419)

 

(35,559)

Cash paid for solar power systems

-

 

(10,007)

 

(4,917)

 

(10,007)

 

(4,917)

Proceeds from sales or maturities of marketable securities

-

 

-

 

-

 

-

 

1,380

Proceeds from 8point3 Energy Partners LP attributable to real estate projects and residential lease portfolio

22,754

 

341,174

 

-

 

363,928

 

-

Purchases of marketable securities

-

 

-

 

-

 

-

 

(30)

Cash paid for acquisitions, net of cash acquired

(59,021)

 

-

 

(1,000)

 

(59,021)

 

(6,894)

Cash paid for investments in unconsolidated investees

3,000

 

(7,092)

 

-

 

(4,092)

 

(5,013)

Cash paid for intangibles

(2,875)

 

-

 

-

 

(3,401)

 

-

Net cash provided by (used in) investing activities

(121,555)

 

247,853

 

(41,932)

 

62,977

 

(106,091)

Cash flows from financing activities:

                 

Proceeds from issuance of convertible debt, net of issuance costs

-

 

-

 

-

 

-

 

395,275

Cash paid for repurchase of convertible debt

(79)

 

-

 

(51)

 

(324,352)

 

(42,153)

Proceeds from settlement of 4.75% Bond Hedge

-

 

-

 

-

 

-

 

68,842

Payments to settle 4.75% Warrants

-

 

-

 

-

 

-

 

(81,077)

Proceeds from settlement of 4.50% Bond Hedge

-

 

-

 

4

 

74,628

 

114

Payments to settle 4.50% Warrants

-

 

(574)

 

-

 

(574)

 

-

Proceeds from issuance of non-recourse debt financing, net of issuance costs

25,615

 

54,830

 

1,426

 

80,445

 

74,840

Repayment of non-recourse debt financing

(256)

 

(429)

 

-

 

(1,083)

 

-

Proceeds from issuance of project loans, net of issuance costs

21,356

 

100,500

 

-

 

211,847

 

-

Assumption of project loan by customer

-

 

-

 

-

 

-

 

(40,672)

Repayment of bank loans, project loans and other debt

(38)

 

(232,214)

 

(7,972)

 

(240,198)

 

(16,540)

Proceeds from residential lease financing

2,219

 

-

 

-

 

2,219

 

-

Repayment of residential lease financing

-

 

(29,429)

 

-

 

(39,975)

 

(15,686)

Proceeds from sale-leaseback financing

-

 

16,492

 

6,893

 

17,219

 

23,578

Repayment of sale-leaseback financing

-

 

(2,147)

 

(581)

 

(2,237)

 

(1,360)

Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values

-

 

29,300

 

-

 

29,300

 

-

Contributions from noncontrolling interests and

redeemable noncontrolling interests

41,796

 

46,046

 

22,534

 

133,732

 

75,312

Distributions to noncontrolling interests and

redeemable noncontrolling interests

(2,223)

 

(2,307)

 

(1,172)

 

(6,790)

 

(2,808)

Proceeds from exercise of stock options

289

 

175

 

309

 

467

 

939

Excess tax benefit from stock-based compensation

18,363

 

6,155

 

-

 

25,090

 

-

Purchases of stock for tax withholding obligations on vested restricted stock

(2,081)

 

(1,622)

 

(3,196)

 

(42,407)

 

(56,000)

Net cash provided by (used in) financing activities

104,961

 

(15,224)

 

18,194

 

(82,669)

 

382,604

Effect of exchange rate changes on cash and cash equivalents

351

 

874

 

(1,973)

 

(4,242)

 

(2,306)

Net increase (decrease) in cash and cash equivalents

(120,162)

 

21,470

 

(58,129)

 

(453,294)

 

160,218

Cash and cash equivalents, beginning of period

623,043

 

601,573

 

980,858

 

956,175

 

762,511

Cash and cash equivalents, end of period

$  502,881

 

$  623,043

 

$  922,729

 

$   502,881

 

$  922,729

                   

Non-cash transactions:

                 

Assignment of financing receivables to a third party financial institution

$      1,053

 

$          382

 

$      2,163

 

$        2,742

 

$      6,419

Costs of solar power systems, leased and to be leased, sourced from existing inventory

16,867

 

15,764

 

11,905

 

47,295

 

25,808

Costs of solar power systems, leased and to be leased, funded by liabilities

8,229

 

3,971

 

2,389

 

8,229

 

2,389

Costs of solar power systems under sale-leaseback financing arrangements sourced from project assets

-

 

5,026

 

2,064

 

6,076

 

17,333

Property, plant and equipment acquisitions funded by liabilities

43,083

 

37,017

 

12,146

 

43,083

 

12,146

Issuance of common stock upon conversion of convertible debt

-

 

-

 

-

 

-

 

188,263

Sale of residential lease portfolio in exchange for non-controlling equity interests in the 8point3 Group

-

 

68,273

 

-

 

68,273

 

-

Acquisition of intangible assets funded by liabilities

6,512

 

-

 

-

 

6,512

 

-

 

Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures, as described below. The specific non-GAAP measures listed below are: revenue; gross margin; net income; net income per diluted share; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and free cash flow. Management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in each of these key elements of the company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, each of these non-GAAP financial measures provides investors with another method to assess the company's operating results in a manner that is focused on its ongoing, core operating performance, absent the effects of these items. Management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Many of the analysts covering the company also use these non-GAAP measures in their analyses. Given management's use of these non-GAAP measures, the company believes these measures are important to investors in understanding the company's operating results as seen through the eyes of management. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; the non-GAAP measures should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

Non-GAAP revenue includes adjustments relating to 8point3 and utility and power plant projects as described below. Non-GAAP gross margin includes adjustments relating to 8point3, utility and power plant projects, the FPSC arbitration ruling, stock-based compensation, and other items as described below. In addition to those same adjustments, non-GAAP net income and non-GAAP net income per diluted share are adjusted for adjustments relating to the November 2014 Restructuring Plan, IPO-related costs, and the tax effect of these non-GAAP adjustments as described below. In addition to the same adjustments as non-GAAP net income, EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for (benefit from) income taxes, and depreciation. Free cash flow includes adjustments relating to investing cash flows and lease financings as described below.

Non-GAAP Adjustments

  • 8point3. In June 2015, 8point3 Energy Partners LP ("8point3 Energy Partners"), a joint YieldCo vehicle formed by the company and First Solar, Inc. ("First Solar" and, together with the company, the "Sponsors") to own, operate and acquire solar energy generation assets, completed an initial public offering ("IPO") of Class A shares representing limited partner interests in 8point3 Energy Partners. The IPO was consummated on June 24, 2015 whereupon the Class A shares are now listed on the NASDAQ Global Select Market under the trading symbol "CAFD." Immediately after the IPO, the company contributed a portfolio of 170 MW of its solar generation assets (the "SPWR Projects") to 8point3 Operating Company, LLC ("OpCo"), 8point3 Energy Partners' primary operating subsidiary. In exchange for the SPWR Projects, the company received cash proceeds of $371 million as well as equity interests in several 8point3 Energy Partners affiliated entities: primarily common and subordinated units representing a 40.7% stake in OpCo and a 50.0% economic and management stake in 8point3 Holding Company, LLC ("Holdings"), the parent company of the general partner of 8point3 Energy Partners and the owner of incentive distribution rights in OpCo. Holdings, OpCo, 8point3 Energy Partners and their respective subsidiaries are referred to herein as the "8point3 Group" or "8point3."

    The company includes adjustments related to the sales of projects contributed to 8point3 based on the difference between the fair market value of the consideration received and the net carrying value of the projects contributed, of which, a portion is deferred in proportion to the company's retained equity stake in 8point3. The deferred profit is subsequently recognized over time. This treatment is consistent with the accounting rules relating to the sale of such projects under International Financial Reporting Standards ("IFRS"). Under these rules, with certain exceptions such as for projects already in operation, the company's revenue is equal to the fair market value of the consideration received, and cost of goods sold is equal to the net carrying value plus a partial deferral of profit proportionate with the retained equity stake. Under GAAP, these sales are recognized under either real estate, lease, or consolidation accounting rules depending upon the nature of the individual asset contributed, with outcomes ranging from no profit recognition to full profit recognition. IFRS profit, less deferrals associated with retained equity, is recognized for sales related to the residential lease portfolio. Revenue recognition for other projects sold to 8point3 is deferred until these projects reach commercial operations consistent with IFRS rules. Equity in earnings of unconsolidated investees includes the impact of the company's share of 8point3's earnings related to sales of projects receiving sales recognition under IFRS but not GAAP.   Management believes that these adjustments for the impact of 8point3 enable investors to better evaluate the company's revenue and profit generation performance.
  • Utility and power plant projects. The company includes adjustments related to the revenue recognition of utility and power plant projects based on the separately-identifiable components of transactions in order to reflect the substance of the transactions. This treatment is consistent with accounting rules relating to such projects under IFRS. On a GAAP basis, such projects are accounted for under U.S. GAAP real estate accounting guidance. Management calculates separate revenue and cost of revenue amounts each fiscal period in accordance with the two treatments above and the aggregate difference for the company's affected projects is included in the relevant reconciliation tables below. Over the life of each project, cumulative revenue and gross margin will be equivalent under the two treatments; however, revenue and gross margin will generally be recognized earlier under the company's non-GAAP treatment than under the company's GAAP treatment. Among other factors, this is due to the attribution of non-GAAP revenue and margin to the company's project development efforts at the time of initial project sale as required under IFRS accounting rules, whereas no separate attribution to this element occurs under U.S. GAAP real estate accounting guidance. Within each project, the relationship between the adjustments to revenue and gross margins is generally consistent. However, as the company may have multiple utility and power plant projects in progress at any given time, the relationship in the aggregate will occasionally appear otherwise. Management believes that this adjustment for utility and power plant projects enables investors to evaluate the company's revenue generation performance relative to the direct costs of revenue of its core businesses.
  • FPSC arbitration ruling. On January 28, 2015, an arbitral tribunal of the International Court of Arbitration of the International Chamber of Commerce declared a binding partial award in the matter of an arbitration between First Philippine Electric Corporation ("FPEC") and First Philippine Solar Corporation ("FPSC") against SunPower Philippines Manufacturing, Ltd. ("SPML"), the company's wholly-owned subsidiary. The tribunal found SPML in breach of its obligations under its supply agreement with FPSC, and in breach of its joint venture agreement with FPEC. The second partial and final awards received on July 17, 2015 and October 19, 2015, respectively, reduced the estimated amounts to be paid to FPEC. As a result, the company recorded its best estimate of probable loss related to this case. As this loss is nonrecurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
  • Stock-based compensation. Stock-based compensation relates primarily to the company's equity incentive awards. Stock-based compensation is a non-cash expense that varies from period to period and is dependent on market forces that are difficult to predict. Due to this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.
  • November 2014 Restructuring Plan. In November 2014, the company approved a reorganization plan aimed towards realigning resources consistently with the company's global strategy and improving its overall operating efficiency and cost structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have historically occurred infrequently. Although SunPower has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from the company's non-GAAP financial measures as they are not reflective of ongoing operating results or contribute to a meaningful evaluation of a company's past operating performance.
  • IPO-related costs. Costs incurred related to the IPO of 8point3 included legal, accounting, advisory, valuation, and other expenses, as well as modifications to or terminations of certain existing financing structures in preparation for the sale to 8point3. As these costs are non-recurring in nature, excluding this data provides investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.
  • Other. The company combines amounts previously disclosed under separate captions into "Other" when amounts do not have a significant impact on the current fiscal period. Management believes that these adjustments provide investors with a basis to evaluate the company's performance, including compared with the performance of other companies, without similar impacts.

    The amounts recorded in "Other" during the third quarter of fiscal 2015 are driven by adjustments which would have previously been disclosed under other non-GAAP adjustment captions, including "Amortization of intangible assets" and "Non-cash interest expense."
  • Tax effect. This amount is used to present each of the adjustments described above on an after-tax basis in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. The company's non-GAAP tax amount is based on estimated cash tax expense and reserves. The company forecasts its annual cash tax liability and allocates the tax to each quarter in proportion to earnings for that period. This approach is designed to enhance investors' ability to understand the impact of the company's tax expense on its current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments, which may not reflect actual cash tax expense.
  • EBITDA adjustments. When calculating EBITDA, in addition to adjustments described above, the company excludes the impact during the period of the following items:
    • Cash interest expense, net of interest income
    • Provision for (benefit from) income taxes
    • Depreciation

Management presents this non-GAAP financial measure to give investors a basis to evaluate the company's performance, including compared with the performance of other companies.

  • Free cash flow adjustments. When calculating free cash flow, the company includes the impact during the period of the following items:
    • Net cash provided by (used in) investing activities
    • Proceeds from issuance of non-recourse debt financing, net of issuance costs
    • Repayment of non-recourse debt financing
    • Proceeds from residential lease financing
    • Repayment of residential lease financing
    • Proceeds from sale-leaseback financing
    • Repayment of sale-leaseback financing
    • Proceeds from 8point3 Energy Partners attributable to operating leases and unguaranteed sales-type lease residual values
    • Contributions from noncontrolling interests and redeemable noncontrolling interests
    • Distributions to noncontrolling interests and redeemable noncontrolling interests

Management presents this non-GAAP financial measure to enable investors to evaluate the company's performance, including compared with the performance of other companies.

For more information about these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP Measures to Non-GAAP Measures" set forth at the end of this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.

 

SUNPOWER CORPORATION

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except percentages and per share data)

(Unaudited)

                   

Adjustments to Revenue:

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

GAAP revenue

$   380,218

 

$   381,020

 

$  662,734

 

$  1,202,109

 

$  1,863,027

8point3

59,619

 

-

 

-

 

59,619

 

-

Utility and power plant projects

1,567

 

(4,313)

 

41,475

 

(13,016)

 

145,961

Non-GAAP revenue

$   441,404

 

$   376,707

 

$  704,209

 

$  1,248,712

 

$  2,008,988

                   

Adjustments to Gross margin:

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

GAAP gross margin

$      62,644

 

$      70,881

 

$  108,514

 

$     224,343

 

$     365,648

8point3

18,296

 

-

 

-

 

18,296

 

-

Utility and power plant projects

(516)

 

(4,328)

 

(721)

 

(16,095)

 

5,285

FPSC arbitration ruling

(7,500)

 

(7,100)

 

-

 

(14,600)

 

-

Stock-based compensation expense

4,210

 

3,259

 

3,972

 

10,035

 

10,878

Other

1,088

 

3,431

 

5,919

 

10,547

 

7,342

Non-GAAP gross margin

$      78,222

 

$      66,143

 

$  117,684

 

$     232,526

 

$     389,153

                   

GAAP gross margin (%)

16.5%

 

18.6%

 

16.4%

 

18.7%

 

19.6%

Non-GAAP gross margin (%)

17.7%

 

17.6%

 

16.7%

 

18.6%

 

19.4%

                   

Adjustments to Net income (loss):

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

GAAP net income (loss) attributable to stockholders

$   (56,326)

 

$        6,509

 

$    32,033

 

$     (59,398)

 

$     111,179

8point3

19,371

 

(4,688)

 

-

 

14,683

 

-

Utility and power plant projects

(516)

 

(4,328)

 

(721)

 

(16,095)

 

5,285

FPSC arbitration ruling

(7,500)

 

(7,100)

 

-

 

(14,600)

 

-

Stock-based compensation expense

14,898

 

14,040

 

13,725

 

42,484

 

41,940

November 2014 Restructuring Plan

985

 

1,866

 

-

 

6,638

 

-

IPO-related costs

1,233

 

15,231

 

-

 

26,364

 

-

Other

1,372

 

3,841

 

11,605

 

15,596

 

20,999

Tax effect

46,959

 

1,797

 

(10,199)

 

51,696

 

(13,706)

Non-GAAP net income attributable to stockholders

$      20,476

 

$      27,168

 

$    46,443

 

$        67,368

 

$     165,697

                   
                   

Adjustments to Net income (loss) per diluted share:

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

Net income (loss) per diluted share

                 

Numerator:

                 

GAAP net income (loss) available to common stockholders1

$   (56,326)

 

$        7,021

 

$    33,442

 

$     (59,398)

 

$     113,770

Non-GAAP net income available to common stockholders1

$      20,808

 

$      27,679

 

$    46,994

 

$        68,762

 

$     169,879

                   

IPO-related costs

                 

GAAP weighted-average shares

136,473

 

156,995

 

167,117

 

134,294

 

158,962

Effect of dilutive securities:

                 

Options

18

 

-

 

-

 

32

 

-

RSUs/PSUs

1,170

 

-

 

-

 

1,882

 

-

Upfront Warrant

6,531

 

-

 

-

 

6,880

 

-

Warrants (under the CSO2015)

-

 

-

 

-

 

1,218

 

-

0.75% debentures due 2018

12,026

 

-

 

-

 

12,026

 

-

0.875% debentures due 2021

-

 

-

 

(8,203)

 

-

 

(3,305)

4.75% debentures due 2014

-

 

-

 

-

 

-

 

3,347

Non-GAAP weighted-average shares1

156,218

 

156,995

 

158,914

 

156,332

 

159,004

                   

GAAP net income (loss) per diluted share

$        (0.41)

 

$          0.04

 

$         0.20

 

$          (0.44)

 

$            0.72

Non-GAAP net income per diluted share

$          0.13

 

$          0.18

 

$         0.30

 

$            0.44

 

$            1.07

   

1

In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.75% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share.  If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-GAAP net income per diluted share.

 

EBITDA:

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

GAAP net income (loss) attributable to stockholders

$   (56,326)

 

$        6,509

 

$    32,033

 

$     (59,398)

 

$     111,179

8point3

19,371

 

(4,688)

 

-

 

14,683

 

-

Utility and power plant projects

(516)

 

(4,328)

 

(721)

 

(16,095)

 

5,285

FPSC arbitration ruling

(7,500)

 

(7,100)

 

-

 

(14,600)

 

-

Stock-based compensation expense

14,898

 

14,040

 

13,725

 

42,484

 

41,940

November 2014 Restructuring Plan

985

 

1,866

 

-

 

6,638

 

-

IPO-related costs

1,233

 

15,231

 

-

 

26,364

 

-

Other

1,372

 

3,841

 

11,605

 

15,596

 

20,999

Cash interest expense, net of interest income

8,348

 

8,023

 

11,476

 

27,463

 

37,358

Provision for (benefit from) income taxes

36,224

 

(659)

 

(8,320)

 

37,916

 

(2,868)

Depreciation

36,142

 

30,820

 

25,727

 

95,566

 

75,124

EBITDA

$      54,231

 

$      63,555

 

$    85,525

 

$     176,617

 

$     289,017

                   

Free Cash Flow:

                 
 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

Sep. 27,

 

Jun. 28,

 

Sep. 28,

 

Sep. 27,

 

Sep. 28,

 

2015

 

2015

 

2014

 

2015

 

2014

Net cash used in operating activities

$ (103,919)

 

$ (212,033)

 

$  (32,418)

 

$   (429,360)

 

$   (113,989)

Net cash provided by (used in) investing activities

(121,555)

 

247,853

 

(41,932)

 

62,977

 

(106,091)

Proceeds from issuance of non-recourse debt financing, net of issuance costs

25,615

 

54,830

 

1,426

 

80,445

 

74,840

Repayment of non-recourse debt financing

(256)

 

(429)

 

-

 

(1,083)

 

-

Proceeds from residential lease financing

2,219

 

-

 

-

 

2,219

 

-

Repayment of residential lease financing

-

 

(29,429)

 

-

 

(39,975)

 

(15,686)

Proceeds from sale-leaseback financing

-

 

16,492

 

6,893

 

17,219

 

23,578

Repayment of sale-leaseback financing

-

 

(2,147)

 

(581)

 

(2,237)

 

(1,360)

Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values

-

 

29,300

 

-

 

29,300

 

-

Contributions from noncontrolling interests and redeemable noncontrolling interests

41,796

 

46,046

 

22,534

 

133,732

 

75,312

Distributions to noncontrolling interests and redeemable noncontrolling interests

(2,223)

 

(2,307)

 

(1,172)

 

(6,790)

 

(2,808)

Free cash flow

$ (158,323)

 

$   148,176

 

$  (45,250)

 

$   (153,553)

 

$     (66,204)

 

     
     

Q4 2015 and FY 2015 GUIDANCE

(in thousands except percentages percentages and per share data)

Q4 2015

FY 2015

Revenue (GAAP)

$300,000-$350,000

$1,500,000-$1,550,000

Revenue (non-GAAP) (1)

$1,250,000-$1,300,000

$2,500,000-$2,550,000

Gross margin (GAAP)

5%-6%

15%-16%

Gross margin (non-GAAP) (2)

28%-29%

23%-24%

Net loss per diluted share (GAAP)

($1.25)-($1.15)

($1.70)-($1.60)

Net income (loss) per diluted share (non-GAAP) (3)

N/A

$1.95-$2.05

EBITDA (4)

$300,000-$325,000

$475,000-$500,000

 

(1)

Estimated non-GAAP amounts above for Q4 2015 include net adjustments that increase revenue by approximately $950 million of revenue related to 8point3. Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) revenue by approximately $1,010 million of revenue related to 8point3 and ($10) million related to utility and power plant projects.

   

(2)

Estimated non-GAAP amounts above for Q4 2015 include net adjustments that increase gross margin by approximately $350 million related to 8point3, $4 million related to stock-based compensation expense, and $1 million related to other items. Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) gross margin by approximately $370 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $14 million related to stock-based compensation expense, and $11 million related to other items.

   

(3)

Estimated non-GAAP amounts above for fiscal 2015 include net adjustments that increase (decrease) net loss by approximately $400 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $60 million related to stock-based compensation expense, $25 million related to IPO-related costs, $30 million related to other items, and $45 million related to tax effect.

   

(4)

Estimated EBITDA amounts above for Q4 2015 include net adjustments that increase net loss by approximately $385 million related to 8point3, $17 million related to stock-based compensation expense, $5 million related to other items, $10 million related to interest expense, $30 million related to income taxes and $30 million related to depreciation. Estimated EBITDA amounts above for fiscal 2015 include net adjustments that increase (decrease) net loss by approximately $400 million related to 8point3, ($15) million related to utility and power plant projects, ($15) million related to the FPSC arbitration ruling, $60 million related to stock-based compensation expense, $25 million related to IPO-related costs, $30 million related to other items, $40 million related to interest expense, $65 million related to income taxes and $125 million related to depreciation.

   
   

 

The following supplemental data represent the adjustments, individual charges and credits that are included or excluded from SunPower's non-GAAP revenue, gross margin, net income and net income per diluted share measures for each period presented in the Consolidated Statements of Operations contained herein.

   

SUPPLEMENTAL DATA

   

(In thousands, except percentages)

                                                                 
   

THREE MONTHS ENDED

   

September 27, 2015

   

 Revenue 

 

 Gross margin 

 

 Operating expenses 

 

 Other income (expense), net 

 

 Benefit from (provision for) income taxes 

 

 Equity in earnings of unconsolidated investees 

 

 Net income (loss) attributable to stockholders 

   

Residential

 

Commercial

 

Power Plant

 

Residential

 

Commercial

 

Power Plant

 

 Research and

development 

 

 Selling, general

and administrative 

 

 Restructuring charges 

       

GAAP

 

$                     163,563

 

$          84,983

 

$        131,672

 

$      37,152

 

22.7%

 

$   12,646

 

14.9%

 

$      12,846

 

9.8%

                         

$                   (56,326)

8point3

 

(1,311)

 

60,930

 

-

 

(508)

     

18,804

     

-

     

-

 

-

 

-

 

993

 

-

 

82

 

19,371

Utility and power plant projects

 

-

 

-

 

1,567

 

-

     

-

     

(516)

     

-

 

-

 

-

 

-

 

-

 

-

 

(516)

FPSC arbitration ruling

 

-

 

-

 

-

 

(2,456)

     

(1,299)

     

(3,745)

     

-

 

-

 

-

 

-

 

-

 

-

 

(7,500)

Stock-based compensation expense

 

-

 

-

 

-

 

1,541

     

917

     

1,752

     

2,172

 

8,516

 

-

 

-

 

-

 

-

 

14,898

November 2014 Restructuring Plan

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

985

 

-

 

-

 

-

 

985

IPO-related costs

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

1,233

 

-

 

-

 

-

 

-

 

1,233

Other

 

-

 

-

 

-

 

352

     

194

     

542

     

330

 

197

 

(259)

 

16

 

-

 

-

 

1,372

Tax effect

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

-

 

46,959

 

-

 

46,959

Non-GAAP

 

$                     162,252

 

$        145,913

 

$        133,239

 

$      36,081

 

22.2%

 

$   31,262

 

21.4%

 

$      10,879

 

8.2%

                         

$                     20,476

                                                                 
                                                                 
   

June 28, 2015

   

 Revenue 

 

 Gross margin 

 

 Operating expenses 

 

 Other income (expense), net 

 

 Benefit from (provision for) income taxes 

 

 Equity in earnings of unconsolidated investees 

 

 Net income (loss) attributable to stockholders 

   

Residential

 

Commercial

 

Power Plant

 

Residential

 

Commercial

 

Power Plant

 

 Research and

development 

 

 Selling, general

and administrative 

 

 Restructuring charges 

       

GAAP

 

$                     152,205

 

$          62,984

 

$        165,831

 

$      35,226

 

23.1%

 

$     4,142

 

6.6%

 

$      31,513

 

19.0%

                         

$                       6,509

8point3

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

(4,688)

 

-

 

-

 

(4,688)

Utility and power plant projects

 

-

 

-

 

(4,313)

 

-

     

-

     

(4,328)

     

-

 

-

 

-

 

-

 

-

 

-

 

(4,328)

FPSC arbitration ruling

 

-

 

-

 

-

 

(1,969)

     

(1,294)

     

(3,837)

     

-

 

-

 

-

 

-

 

-

 

-

 

(7,100)

Stock-based compensation expense

 

-

 

-

 

-

 

1,212

     

531

     

1,516

     

2,380

 

8,401

 

-

 

-

 

-

 

-

 

14,040

November 2014 Restructuring Plan

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

1,866

 

-

 

-

 

-

 

1,866

IPO-related costs

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

6,351

 

-

 

8,880

 

-

 

-

 

15,231

Other

 

-

 

-

 

-

 

941

     

637

     

1,853

     

330

 

197

 

(117)

 

-

 

-

 

-

 

3,841

Tax effect

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

-

 

1,797

 

-

 

1,797

Non-GAAP

 

$                     152,205

 

$          62,984

 

$        161,518

 

$      35,410

 

23.3%

 

$     4,016

 

6.4%

 

$      26,717

 

16.5%

                         

$                     27,168

                                                                 
                                                                 
   

September 28, 2014

   

 Revenue 

 

 Gross margin 

 

 Operating expenses 

 

 Other income (expense), net 

 

 Benefit from (provision for) income taxes 

 

 Equity in earnings of unconsolidated investees 

 

 Net income (loss) attributable to stockholders 

   

Residential

 

Commercial

 

Power Plant

 

Residential

 

Commercial

 

Power Plant

 

 Research and

development 

 

 Selling, general

and administrative 

 

 Restructuring charges 

       

GAAP

 

$                     153,947

 

$          94,830

 

$        413,957

 

$      27,395

 

17.8%

 

$   13,599

 

14.3%

 

$      67,520

 

16.3%

                         

$                     32,033

Utility and power plant projects

 

-

 

-

 

41,475

 

-

     

-

     

(721)

     

-

 

-

 

-

 

-

 

-

 

-

 

(721)

Stock-based compensation expense

 

-

 

-

 

-

 

1,007

     

440

     

2,525

     

2,022

 

7,731

 

-

 

-

 

-

 

-

 

13,725

Other

 

-

 

-

 

-

 

174

     

75

     

5,670

     

6

 

742

 

188

 

4,750

 

-

 

-

 

11,605

Tax effect

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

-

 

(10,199)

 

-

 

(10,199)

Non-GAAP

 

$                     153,947

 

$          94,830

 

$        455,432

 

$      28,576

 

18.6%

 

$   14,114

 

14.9%

 

$      74,994

 

16.5%

                         

$                     46,443

                                                                 
                                                                 
                                                                 
   

NINE MONTHS ENDED

   

September 27, 2015

   

 Revenue 

 

 Gross margin 

 

 Operating expenses 

 

 Other income (expense), net 

 

 Benefit from (provision for) income taxes 

 

 Equity in earnings of unconsolidated investees 

 

 Net income (loss) attributable to stockholders 

   

Residential

 

Commercial

 

Power Plant

 

Residential

 

Commercial

 

Power Plant

 

 Research and

development 

 

 Selling, general

and administrative 

 

 Restructuring charges 

       

GAAP

 

$                     471,092

 

$        197,030

 

$        533,987

 

$   104,930

 

22.3%

 

$   18,971

 

9.6%

 

$   100,442

 

18.8%

                         

$                   (59,398)

8point3

 

(1,311)

 

60,930

 

-

 

(508)

     

18,804

     

-

     

-

 

-

 

-

 

(3,695)

 

-

 

82

 

14,683

Utility and power plant projects

 

-

 

-

 

(13,016)

 

-

     

-

     

(16,095)

     

-

 

-

 

-

 

-

 

-

 

-

 

(16,095)

FPSC arbitration ruling

 

-

 

-

 

-

 

(4,425)

     

(2,593)

     

(7,582)

     

-

 

-

 

-

 

-

 

-

 

-

 

(14,600)

Stock-based compensation expense

 

-

 

-

 

-

 

3,675

     

1,836

     

4,524

     

6,825

 

25,624

 

-

 

-

 

-

 

-

 

42,484

November 2014 Restructuring Plan

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

6,638

 

-

 

-

 

-

 

6,638

IPO-related costs

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

11,168

 

-

 

15,196

 

-

 

-

 

26,364

Other

 

-

 

-

 

-

 

3,097

     

1,285

     

6,165

     

990

 

593

 

(582)

 

4,048

 

-

 

-

 

15,596

Tax effect

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

-

 

51,696

 

-

 

51,696

Non-GAAP

 

$                     469,781

 

$        257,960

 

$        520,971

 

$   106,769

 

22.7%

 

$   38,303

 

14.8%

 

$      87,454

 

16.8%

                         

$                     67,368

                                                                 
   

September 28, 2014

   

 Revenue 

 

 Gross margin 

 

 Operating expenses 

 

 Other income (expense), net 

 

 Benefit from (provision for) income taxes 

 

 Equity in earnings of unconsolidated investees 

 

 Net income (loss) attributable to stockholders 

   

Residential

 

Commercial

 

Power Plant

 

Residential

 

Commercial

 

Power Plant

 

 Research and

development 

 

 Selling, general

and administrative 

 

 Restructuring charges 

       

GAAP

 

$                     474,799

 

$        256,421

 

$    1,131,807

 

$      90,558

 

19.1%

 

$   35,938

 

14.0%

 

$   239,152

 

21.1%

                         

$                   111,179

Utility and power plant projects

 

-

 

-

 

145,961

 

-

     

-

     

5,285

     

-

 

-

 

-

 

-

 

-

 

-

 

5,285

Stock-based compensation expense

 

-

 

-

 

-

 

2,891

     

1,471

     

6,516

     

5,731

 

25,331

 

-

 

-

 

-

 

-

 

41,940

Other

 

-

 

-

 

-

 

547

     

267

     

6,528

     

19

 

796

 

(990)

 

13,832

 

-

 

-

 

20,999

Tax effect

 

-

 

-

 

-

 

-

     

-

     

-

     

-

 

-

 

-

 

-

 

(13,706)

 

-

 

(13,706)

Non-GAAP

 

$                     474,799

 

$        256,421

 

$    1,277,768

 

$      93,996

 

19.8%

 

$   37,676

 

14.7%

 

$   257,481

 

20.2%

                         

$                   165,697

 

Logo - http://photos.prnewswire.com/prnh/20150713/235415LOGO

 

SOURCE SunPower Corp.

For further information: Investors, Bob Okunski, 408-240-5447, Bob.Okunski@sunpower.com, Media, Natalie Wymer, 408-457-2348, Natalie.Wymer@sunpower.com