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SunPower Reports Fourth Quarter and Fiscal Year 2021 Results
- Fourth quarter results consistent with preliminary disclosure; achieved $385M revenue
- Drove fourth quarter Residential gross margin of 25.6%, a multi-year high
- Residential demand remains strong with largest backlog in company history
- Pivotal year: Created a fast-growing, dynamic residential solar company well positioned for the future
- Looking ahead: New supply agreement with Maxeon provides greater degree of freedom for furthering product diversification

SAN JOSE, Calif., Feb. 16, 2022 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced financial results for its fourth quarter ended January 2, 2022 in line with the preliminary results shared last month.

As previously disclosed, SunPower took a $27 million supplier-quality charge in fourth quarter 2021. The company is pursuing recovery of costs from the suppliers. The charges are expected to be funded with cash on hand.

Excluding the supplier-quality charge, SunPower reported fourth quarter revenue of a record $385 million, net income of $47 million and Adjusted EBITDA of $19 million. Factors affecting fourth quarter Adjusted EBITDA include approximately $6.5 million of Residential EBITDA effectively pushed into 2022 as the result of weather in California and COVID impacts. Another $3 million was invested in sales and marketing to rapidly expand SunPower's serviceable solar market to more customers in underpenetrated areas nationally.

SunPower recently announced an agreement to sell its Commercial & Industrial Solutions (CIS) business to TotalEnergies for up to $250 million in cash, including $190 million payable at closing, subject to customary adjustments, and up to $60 million in contingent payments subject to regulatory evolution. The transaction will complete SunPower's transition to a residential solar company with enhanced strategic focus on accelerating customer growth and expanding products and services to increase customer lifetime value.

"2021 was a pivotal year for SunPower as we charted a new course for the company with an enhanced focus on driving growth in the residential market, and the forward momentum continues into 2022" said Peter Faricy, CEO of SunPower. "Thanks to the strategic acquisition of Blue Raven, the sale of CIS, new executive hires, product innovation and our increased focus on lifetime customer experience, we have never been in a better position to optimize for growth in the year ahead making solar within reach for more homeowners across the nation. I am confident that our clear strategic direction will help create the industry's best experience for residential customers and deliver long-term value to our shareholders."

Solidified Strategic Position
With nearly 22,500 residential bookings in the quarter, up 42% versus the prior year, SunPower's total residential install base reached 427,000 in 2021 with a growing and record-high backlog.

In addition, SunPower further enhanced its strategic position during 2021 by:

  1. Acquiring Blue Raven Solar and introducing SunPower 25x25 commitments to help reach 100 million homes.
  2. Launching a financial services institution, SunPower Financial™, to make renewable energy affordable for more American homeowners while enabling SunPower to lower its cost of capital.
  3. Partnering with Wallbox to be the premier installer of electric vehicle (EV) charging solutions to make the switch to an electric lifestyle more convenient, affordable and sustainable.
  4. Raising the bar higher for customer experience with an increased focus on monitoring issues, auditing supplier quality, and making corrections before customers even notice, where possible. 
  5. Expanding SunVault battery storage capabilities nationwide – including initiating the roll-out of its Virtual Power Plant (VPP) program — which customers are increasingly demanding to address the impact of power outages and rising energy prices. Ended the year with $130 million in storage bookings run rate.

SunPower also continued to lead the new homes market including an exclusive agreement with The New Home Company to provide solar, battery storage and at-home EV chargers as standard features in its newest California community. New homes segment showed accelerated growth with 8,700 new customers in the quarter, a 50% increase from the previous year, entering 2022 with a potential homebuilder pipeline of a record-high 66,000 customers.

Optimizing for Growth and Innovation
SunPower's goal is to enable people to power nearly every aspect of their lives — from home appliances to cars - with the sun. At the beginning of 2022, the company made a number of strategic investments and decisions that underscore this effort. 

On February 14, SunPower entered into a new supply agreement with Maxeon. The new contract terms allow the company to exit from exclusivity ahead of schedule, providing the opportunity to continue offering Maxeon residential products while exploring additional panel providers. As a part of the negotiation, SunPower and Maxeon terminated their exclusivity agreement for Light Commercial Value-Added Reseller (CVAR) products.  SunPower has made the decision to exit this business, reinforcing the company's strategic direction to serve the consumer market exclusively.

This week, SunPower completed an investment in OhmConnect to help the fast-growing residential VPP provider deliver homeowners a full stack solution for energy savings and management. The investment and subsequent strategic affiliation will introduce new products and services that increase financial value for SunPower's solar and storage customers and create new opportunities to deepen relationships with them while enabling more grid reliability.

Financial Highlights

 

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

4th Quarter
2021

3rd Quarter
2021

4th Quarter
2020

Fiscal Year
2021

Fiscal Year
2020

GAAP revenue

$384.5

$323.6

$341.8

$1,323.5

$1,124.8

GAAP gross margin from continuing operations

13.3%

18.4%

22.0%

16.7%

14.9%

GAAP net income (loss) from continuing operations

$20.2

$(84.4)

$412.5

$(37.4)

$599.4

GAAP net income (loss) from continuing operations per diluted share

$0.11

$(0.49)

$2.08

$(0.22)

$3.11

Non-GAAP revenue1

$384.2

$322.0

$337.5

$1,312.7

$1,102.9

Non-GAAP gross margin1

13.9%

18.9%

22.4%

17.5%

16.8%

Non-GAAP net income (loss)1

$(12.8)

$10.6

$26.1

$12.5

$(3.7)

Non-GAAP net income (loss) from continuing operations per diluted share1

$(0.07)

$0.06

$0.14

$0.07

$(0.02)

Adjusted EBITDA1

$(7.6)

$18.2

$37.5

$46.8

$46.7

MW Recognized

154

121

153

527

483

Cash2

$127.1

$268.6

$232.8

$127.1

$232.8

 

Information presented for fiscal year 2020 above is for continuing operations only, and excludes results of Maxeon, other than Cash.

 

1Information 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

 

2Includes cash, and cash equivalents, excluding restricted cash

 

"As we enter 2022, the underlying fundamentals of our business are strong, with robust top of funnel lead generation and record-high bookings. We are also very pleased with residential gross margins that continued to come in well above 20% in the fourth quarter, reflecting strength in our sales and the trust we've built with homeowners," said Manavendra Sial, chief financial officer at SunPower.

Fourth quarter financial highlights include:

  1. Accelerating growth with 17,000 customers added in the quarter, growing 31% year over year. 
  2. Healthy Residential gross margins at 25.6%, up 100-basis points from the last year; and,
  3. Strong balance sheet at $297 million net recourse debt including $127 million unrestricted cash.

Financial Outlook
On a GAAP basis, SunPower is projecting net income of $85 million to $105 million in 2022.

For 2022, SunPower is guiding to Adjusted EBITDA of $90 million to $110 million. Relative to prior color for 2022, the midpoint represents a reduction of approximately $15 million as a result of the plan to exit the Light Commercial business and another $20 million is primarily driven by the updated supply agreement with Maxeon as the company accelerates a shift toward a more diversified customer offering and supply chain. It assumes limited customer price increases during the transition. Residential customer volume is projected to grow by 73,000 to 80,000 customers this year, greater than 35% versus 2021, an acceleration of growth versus 28% for the prior year. Ongoing Residential Adjusted EBITDA before product and digital operating expense is projected at $2,000 to $2,400 per customer, based on the midpoint of projected volume.

Moving forward, SunPower is shifting toward annual guidance for these metrics, with an emphasis on EBITDA generation per customer rather than per watt. This reflects a longer-term view of value creation per customer and the broader industry shift toward the provision of multiple products and services beyond the initial solar system.

Earnings Conference Call Information
The company will host a conference call for investors this afternoon to discuss its fourth quarter and full year 2021 performance at 1:30 p.m. Pacific Time. The call will be webcast and can be accessed from SunPower's Investor Relations along with supplemental financial information 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.  

About SunPower
Headquartered in California's Silicon Valley, SunPower (NASDAQ:SPWR) is a leading Distributed Generation Storage and Energy Services provider in North America. SunPower offers the only solar + storage solution designed and warranted by one company that gives customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners, businesses, governments, schools and utilities. For more information, 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 regarding our future performance based on bookings, backlog, lead-generation, and pipelines in our sales channels and for our products; (b) estimated quality-related accounting charges and anticipated funding source, as well as pursuit of recovery from suppliers; (c) our expectations for expansion of our serviceable solar market and into additional markets; (d) the planned sale of our CIS business to TotalEnergies, including timing and certainty of closing; (e) our strategic plans and areas of investment and focus, both current and future, and expectations for the results thereof; (f) our expectations regarding projected growth in 2022 and beyond, our positioning for future success, and ability to deliver long-term value to our shareholders; (g) our plans and expectations our acquisitions, strategic partnerships and initiatives, including our acquisition of Blue Raven Solar and our partnerships with Wallbox, OhmConnect, and the New Home Company; (h) our expectations regarding the impact of our 25X25 initiative to help ensure historically underserved communities benefit from solar and storage; (i) our expectations for our supply relationship with Maxeon, including plans to explore offering alternative products; (j) our planned areas of focus and investment, including our future focus on the consumer market and our plans to exit the light commercial business; (k) our plans for SunPower Financial, including impact on affordability of solar, and plans for expanded eligibility; (l) our plans to enhance our customer experience and quality programs, and anticipated results thereof; (m) the anticipated future success of our products and growth initiatives, including our ability to expand into new markets and increase adoption of our financial and other products, including impacts on our business and financial results; (n) our expectations for future business performance and sales based on the strength of our fundamentals and customer relationships; (o) our expectations for industry trends and factors, and the impact thereof on our business and strategic plans; and (p) our guidance for fiscal year 2022, including GAAP net income and Adjusted EBITDA, as well as expectations for residential customer volume, Residential EBITDA before product and digital operating expense per customer, and related assumptions.

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) regulatory changes and the availability of economic incentives promoting use of solar energy;  (2) potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including impacts of the Covid-19 pandemic, and other factors; (3) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (4) risks related to the introduction of new or enhanced products, including potential technical challenges, lead times, and our ability to match supply with demand while maintaining quality, sales, and support standards; (5) changes in public policy, including the imposition and applicability of tariffs; (6) our dependence on sole- or limited-source supply relationships, including our exclusive supply relationship with Maxeon Solar Technologies; (7) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (8) our liquidity, indebtedness, and ability to obtain additional financing for our projects and customers; and (9) challenges managing our acquisitions, joint ventures, and partnerships, including our ability to successfully manage acquired assets and supplier relationships. 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.

©2022 SunPower Corporation. All rights reserved. SUNPOWER, SUNPOWER FINANCIAL, SUNVAULT, and the SUNPOWER logo are trademarks or registered trademarks of SunPower Corporation in the U.S.

 

SUNPOWER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 
 

January 2, 2022

 

January 3, 2021

Assets

     

Current assets:

     

Cash and cash equivalents

$                    127,130

 

$                    232,765

Restricted cash and cash equivalents, current portion

4,157

 

5,518

Short-term investments

365,880

 

Accounts receivable, net

126,789

 

108,864

Contract assets

81,667

 

114,506

Inventories

242,993

 

210,582

Advances to suppliers, current portion

3,276

 

2,814

Project assets - plants and land, current portion

8,105

 

21,015

Prepaid expenses and other current assets

113,469

 

94,251

Total current assets

1,073,466

 

790,315

       

Restricted cash and cash equivalents, net of current portion

17,326

 

8,521

Property, plant and equipment, net

35,294

 

46,766

Operating lease right-of-use assets

59,226

 

54,070

Solar power systems leased, net

45,502

 

50,401

Goodwill

126,338

 

Other intangible assets, net

24,879

 

697

Other long-term assets

172,775

 

695,712

Total assets

$                 1,554,806

 

$                 1,646,482

       

Liabilities and Equity

     

Current liabilities:

     

Accounts payable

$                    177,055

 

$                    166,066

Accrued liabilities

114,908

 

121,915

Operating lease liabilities, current portion

12,153

 

9,736

Contract liabilities, current portion

88,844

 

72,424

Short-term debt

112,669

 

97,059

Convertible debt, current portion

 

62,531

Total current liabilities

505,629

 

529,731

       

Long-term debt

380

 

56,447

Convertible debt, net of current portion

423,677

 

422,443

Operating lease liabilities, net of current portion

38,766

 

43,608

Contract liabilities, net of current portion

27,801

 

30,170

Other long-term liabilities

168,529

 

157,597

Total liabilities

1,164,782

 

1,239,996

       

Equity:

     

Common stock

173

 

170

Additional paid-in capital

2,714,500

 

2,685,920

Accumulated deficit

(2,122,212)

 

(2,085,246)

Accumulated other comprehensive income (loss)

11,168

 

8,799

Treasury stock, at cost

(215,240)

 

(205,476)

Total stockholders' equity

388,389

 

404,167

Noncontrolling interests in subsidiaries

1,635

 

2,319

Total equity

390,024

 

406,486

Total liabilities and equity

$                 1,554,806

 

$                 1,646,482

 

SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

Revenues:

                   

Solar power systems, components, and other

 

$           378,782

 

$           318,607

 

$           338,507

 

$        1,302,034

 

$        1,103,823

Leasing revenue

 

5,750

 

5,029

 

3,303

 

21,459

 

21,006

Total revenues

 

384,532

 

323,636

 

341,810

 

1,323,493

 

1,124,829

Cost of revenues:

                   

Solar power systems, components, and other

 

329,423

 

260,251

 

264,515

 

1,089,831

 

946,164

Leasing revenue

 

4,057

 

3,735

 

2,144

 

12,055

 

11,538

Total cost of revenues

 

333,480

 

263,986

 

266,659

 

1,101,886

 

957,702

Gross profit

 

51,052

 

59,650

 

75,151

 

221,607

 

167,127

Operating expenses:

                   

Research and development

 

4,365

 

2,979

 

3,275

 

17,070

 

22,381

Sales, general, and administrative

 

76,610

 

51,169

 

52,510

 

232,253

 

164,703

Restructuring charges (credits)

 

175

 

(230)

 

(134)

 

4,519

 

2,604

(Gain) loss on sale and impairment of residential lease assets

 

 

 

(208)

 

(294)

 

45

(Gain) loss on business divestitures, net

 

 

 

124

 

(224)

 

(10,334)

Income from transition services agreement, net1

 

956

 

(468)

 

(4,371)

 

(4,255)

 

(6,260)

Total operating expenses

 

82,106

 

53,450

 

51,196

 

249,069

 

173,139

Operating income (loss)

 

(31,054)

 

6,200

 

23,955

 

(27,462)

 

(6,012)

Other income (expense), net:

                   

Interest income

 

39

 

83

 

72

 

288

 

754

Interest expense

 

(6,683)

 

(6,710)

 

(8,422)

 

(29,079)

 

(33,153)

Other, net

 

68,904

 

(86,074)

 

415,880

 

23,430

 

692,980

Other income (expense), net

 

62,260

 

(92,701)

 

407,530

 

(5,361)

 

660,581

Income (loss) from continuing operations before income taxes and equity in earnings (losses) of unconsolidated investees

 

31,206

 

(86,501)

 

431,485

 

(32,823)

 

654,569

(Provision for) benefits from income taxes

 

(10,212)

 

2,194

 

(18,833)

 

(5,219)

 

(57,549)

Net (loss) income from continuing operations

 

20,994

 

(84,307)

 

412,652

 

(38,042)

 

597,020

(Loss) income from discontinued operations before income taxes and equity in earnings (losses) of unconsolidated investees

 

 

 

 

 

(125,599)

Benefits from (provision for) income taxes

 

 

 

 

 

3,191

Equity in earnings (losses) of unconsolidated investees

 

 

 

 

 

(586)

Net (loss) income from discontinued operations, net of taxes

 

 

 

 

 

(122,994)

Net (loss) income

 

20,994

 

(84,307)

 

412,652

 

(38,042)

 

474,026

Net (income) loss from continuing operations attributable to noncontrolling interests

 

(798)

 

(69)

 

(177)

 

684

 

2,335

Net (income) loss from discontinued operations attributable to noncontrolling interests

 

 

 

 

 

(1,313)

Net (income) loss attributable to noncontrolling interests

 

(798)

 

(69)

 

(177)

 

684

 

1,022

Net (loss) income from continuing operations attributable to stockholders

 

20,196

 

(84,376)

 

412,475

 

(37,358)

 

599,355

Net (loss) income from discontinued operations attributable to stockholders

 

 

 

 

 

(124,307)

Net (loss) income attributable to stockholders

 

$             20,196

 

$            (84,376)

 

$           412,475

 

$            (37,358)

 

$           475,048

                     

Net income (loss) per share attributable to stockholders - basic:

                   

Continuing operations

 

$                  0.12

 

$                (0.49)

 

$                  2.42

 

$                (0.22)

 

$                  3.53

Discontinued operations

 

$                     —

 

$                     —

 

$                     —

 

$                     —

 

$                (0.73)

Net income (loss) per share - basic

 

$                  0.12

 

$                (0.49)

 

$                  2.42

 

$                (0.22)

 

$                  2.80

                     

Net income (loss) per share attributable to stockholders - diluted:

                   

Continuing operations

 

$                  0.11

 

$                (0.49)

 

$                  2.08

 

$                (0.22)

 

$                  3.11

Discontinued operations

 

$                     —

 

$                     —

 

$                     —

 

$                     —

 

$                (0.63)

Net income (loss) per share - diluted

 

$                  0.11

 

$                (0.49)

 

$                  2.08

 

$                (0.22)

 

$                  2.48

                     

Weighted-average shares:

                   

Basic

 

173,019

 

172,885

 

170,267

 

172,436

 

169,801

Diluted

 

175,807

 

172,885

 

200,132

 

172,436

 

197,242

 

SUNPOWER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

Cash flows from operating activities:

                   

Net income (loss)

 

$             20,994

 

$            (84,307)

 

$           412,652

 

$            (38,042)

 

$           474,026

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

                   

Depreciation and amortization

 

4,008

 

1,681

 

2,567

 

11,506

 

48,304

Stock-based compensation

 

6,126

 

4,726

 

6,029

 

25,902

 

24,817

Non-cash interest expense

 

947

 

940

 

1,067

 

5,042

 

6,562

Equity in losses (earnings) of unconsolidated investees

 

 

 

 

 

586

Loss (gain) on equity investments

 

(68,950)

 

86,254

 

(416,455)

 

(21,712)

 

(692,100)

(Gain) loss on retirement of convertible debt

 

 

 

878

 

 

(2,182)

(Gain) loss on sale of investments

 

 

 

 

(1,162)

 

(Gain) loss on business divestitures, net

 

 

 

125

 

(224)

 

(10,334)

Deferred income taxes

 

9,797

 

(2,472)

 

17,602

 

5,688

 

19,241

(Gain) loss on sale and impairment of residential lease assets

 

 

 

209

 

(226)

 

1,024

Other, net

 

439

 

(120)

 

(464)

 

(5,670)

 

534

Changes in operating assets and liabilities:

                   

Accounts receivable

 

(14,099)

 

(1,541)

 

(14,067)

 

(18,549)

 

98,962

Contract assets

 

6,163

 

4,189

 

10,708

 

34,850

 

(12,063)

Inventories

 

(1,567)

 

(5,583)

 

(17,701)

 

(5,325)

 

(29,808)

Project assets

 

1,581

 

(3,488)

 

3,015

 

4,398

 

(8,187)

Prepaid expenses and other assets

 

(21,786)

 

(11,512)

 

(1,837)

 

(32,701)

 

(6,161)

Operating lease right-of-use assets

 

2,548

 

2,344

 

654

 

11,257

 

10,552

Advances to suppliers

 

225

 

2,597

 

(2,814)

 

(462)

 

13,482

Accounts payable and other accrued liabilities

 

39,976

 

(14,016)

 

(3,129)

 

(16,269)

 

(78,269)

Contract liabilities

 

13,736

 

5,047

 

17,842

 

10,229

 

(35,976)

Operating lease liabilities

 

(2,549)

 

(3,868)

 

(1,759)

 

(13,006)

 

(10,401)

Net cash provided by (used in) operating activities

 

(2,411)

 

(19,129)

 

15,122

 

(44,476)

 

(187,391)

Cash flows from investing activities:

                   

Purchases of property, plant, and equipment

 

(6,090)

 

(1,623)

 

(1,403)

 

(10,024)

 

(14,577)

Investments in software development costs

 

(1,051)

 

(2,468)

 

 

(3,519)

 

Proceeds from sale of property, plant, and equipment

 

 

 

 

900

 

Cash paid for solar power systems

 

 

 

(1,134)

 

(635)

 

(6,528)

Purchases of marketable securities

 

 

 

 

 

(1,338)

Proceeds from maturities of marketable securities

 

 

 

 

 

6,588

Cash outflow upon Maxeon Solar Spin-off, net of proceeds

 

 

 

8,996

 

 

(131,136)

Cash received from sale of investments

 

 

 

 

1,200

 

Proceeds from business divestitures, net of de-consolidated cash

 

 

 

 

10,516

 

15,418

Proceeds from sale of equity investment

 

 

177,780

 

133,600

 

177,780

 

253,039

Cash paid for acquisitions, net of cash acquired

 

(124,200)

 

 

 

(124,200)

 

Proceeds from return of capital from equity investments

 

 

 

 

2,276

 

7,724

Net cash provided by (used in) investing activities

 

(131,341)

 

173,689

 

140,059

 

54,294

 

129,190

Cash flows from financing activities:

                   

Proceeds from bank loans and other debt

 

28,412

 

28,273

 

32,752

 

152,081

 

216,483

Repayment of bank loans and other debt

 

(24,385)

 

(52,813)

 

(44,607)

 

(180,771)

 

(227,677)

Proceeds from issuance of non-recourse residential and commercial financing, net of issuance costs

 

 

 

1,355

 

 

14,789

Repayment of non-recourse residential and commercial financing

 

 

 

(1,813)

 

(9,798)

 

(9,044)

Contributions from noncontrolling interests and redeemable noncontrolling interests attributable to residential projects

 

 

 

 

 

22

Distributions to noncontrolling interests and redeemable noncontrolling interests attributable to residential projects

 

 

 

(1,090)

 

 

(1,392)

Repayment of convertible debt

 

 

 

(239,554)

 

(62,757)

 

(334,732)

Proceeds from issuance of Maxeon Solar green convertible debt

 

 

 

 

 

200,000

Receipt of contingent asset of a prior business combination

 

 

 

 

 

2,245

Settlement of contingent consideration arrangement of a prior business combination

 

 

 

(776)

 

 

(776)

Issuance of common stock to executive

 

 

 

 

2,998

 

Equity offering costs paid

 

 

 

 

 

(928)

Purchases of stock for tax withholding obligations on vested restricted stock

 

(2,500)

 

(809)

 

(4,387)

 

(9,762)

 

(12,842)

Net cash (used in) provided by financing activities

 

1,527

 

(25,349)

 

(258,120)

 

(108,009)

 

(153,852)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

 

(22)

 

 

200

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(132,225)

 

129,211

 

(102,961)

 

(98,191)

 

(211,853)

Cash, cash equivalents, and restricted cash, beginning of period

 

280,838

 

151,627

 

349,765

 

246,804

 

458,657

Cash, cash equivalents, and restricted cash, end of period

 

$           148,613

 

$           280,838

 

$           246,804

 

$           148,613

 

$           246,804

                     

Reconciliation of cash, cash equivalents, and restricted cash to the unaudited consolidated balance sheets:

                   

Cash and cash equivalents

 

$           127,130

 

$           268,574

 

$           232,765

 

$           127,130

 

$           232,765

Restricted cash and cash equivalents, current portion

 

4,157

 

7,438

 

5,518

 

4,157

 

5,518

Restricted cash and cash equivalents, net of current portion

 

17,326

 

4,826

 

8,521

 

17,326

 

8,521

Total cash, cash equivalents, and restricted cash

 

$           148,613

 

$           280,838

 

$           246,804

 

$           148,613

 

$           246,804

                     

Supplemental disclosure of cash flow information:

                   

Costs of solar power systems funded by liabilities

 

$                     —

 

$                     —

 

$                   635

 

$                     —

 

$                   635

Property, plant, and equipment acquisitions funded by liabilities

 

$              (1,210)

 

$                1,356

 

$                   866

 

$                1,320

 

$                   866

Right-of-use assets obtained in exchange for lease obligations

 

$                3,671

 

$                4,429

 

$                1,008

 

$             19,628

 

$             22,794

Deconsolidation of right-of-use assets and lease obligations

 

$                     —

 

$                     —

 

$                     —

 

$                3,340

 

$                     —

Debt repaid in sale of commercial projects

 

$                     —

 

$                     —

 

$                     —

 

$                5,585

 

$                     —

Fair value of contingent consideration for business combination

 

$             11,100

 

$                     —

 

$                     —

 

$             11,100

 

$                     —

Assumption of liabilities in connection with business divestitures

 

$                     —

 

$                     —

 

$                9,056

 

$                     —

 

$                9,056

Holdbacks in connection with business divestitures

 

$                     —

 

$                     —

 

$                7,199

 

$                     —

 

$                7,199

Costs of solar power systems sourced from existing inventory

 

$                     —

 

$                     —

 

$                1,018

 

$                     —

 

$                1,018

Cash paid for interest

 

$                1,555

 

$             10,168

 

$                4,117

 

$             25,289

 

$             31,704

Cash paid for income taxes

 

$                2,509

 

$                     83

 

$                1,527

 

$             22,825

 

$             18,708

 

Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures listed below are: revenue; gross margin; net loss; net loss per diluted share; and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Management believes that each of these non-GAAP measures are 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 provide 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 analysis. 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; and therefore, 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 gross margin includes adjustments relating to gain/loss on sale and impairment of residential lease assets, litigation, stock-based compensation, and amortization of intangible assets, each of which is described below. In addition to the above adjustments, non-GAAP net loss and non-GAAP net loss per diluted share are adjusted for adjustments relating to mark to market gain on equity investments, gain on business divestitures, impairment of property, plant, and equipment, transaction-related costs, non-cash interest expense, restructuring charges (credits), gain on convertible debt repurchased, tax effect of these non-GAAP adjustments, each of which is described below. In addition to the above adjustments, Adjusted EBITDA includes adjustments relating to cash interest expense (net of interest income), provision for income taxes, and depreciation.

Non-GAAP Adjustments Based on International Financial Reporting Standards ("IFRS")

The company's non-GAAP results include adjustments under IFRS that are consistent with the adjustments made in connection with the company's internal reporting process as part of its status as a consolidated subsidiary of TotalEnergies SE, our controlling shareholder and a foreign public registrant that reports under IFRS. Differences between GAAP and IFRS reflected in the company's non-GAAP results are further described below. In these situations, management believes that IFRS enables investors to better evaluate the company's performance, and assists in aligning the perspectives of the management with those of TotalEnergies SE.

  • Mark-to-market loss (gain) in equity investments: We recognize adjustments related to the fair value of equity investments with readily determinable fair value based on the changes in the stock price of these equity investments at every reporting period. Under U.S. GAAP, mark-to-market gains and losses due to changes in stock prices for these securities are recorded in earnings while under IFRS, an election can be made to recognize such gains and losses in other comprehensive income. Such an election was made by TotalEnergies SE. Further, we elected the Fair Value Option ("FVO") for some of our equity method investments, and we adjust the carrying value of those investments based on their fair market value calculated periodically. Such option is not available under IFRS, and equity method accounting is required for those investments. We believe that excluding these adjustments on equity investments is consistent with our internal reporting process as part of its status as a consolidated subsidiary of TotalEnergies SE. and better reflects our ongoing results.

Other Non-GAAP Adjustments

  • Results of operations of Legacy business to be exited: We exclude the results of operations of our legacy businesses that we have exited from our Non-GAAP results. These are reported within our Others segment, and include our Hillsboro, Oregon facility that ceased manufacturing and revenue generation in the first quarter of 2021, as well as, results of our legacy power plant and legacy O&M businesses, where we are not doing new business and the remaining activities comprise of true-up of estimated milestones payments, settlement of certain warranty obligations on projects and other wind-down activities. As such, they are not reflective of ongoing operating results.
     
  • (Gain) loss on sale and impairment of residential lease assets: In fiscal 2018 and 2019, in an effort to sell all the residential lease assets owned by us, we sold membership units representing a 49% membership interest in majority of its residential lease business and retained a 51% membership interest. We record an impairment charge based on the expected fair value for a portion of residential lease assets portfolio that was retained. Any charges or credits on these remaining unsold residential lease assets impairment, as well as its corresponding depreciation savings, are excluded from our non-GAAP results as they are not reflective of ongoing operating results.
     
  • Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe 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.
     
  • Litigation: We may be involved in various instances of litigation, claims and proceedings that result in payments or recoveries. We exclude gains or losses associated with such events because the gains or losses do not reflect our underlying financial results in the period incurred. We also exclude all expenses pertaining to litigation relating to businesses that discontinued as a result of spin-off of Maxeon Solar, for which we are indemnifying them. We believe that it is appropriate to exclude such charges from our non-GAAP results as they are not reflective of ongoing operating results.
     
  • Transaction-related costs: In connection with material transactions such as acquisition or divestiture of a business, the company incurred transaction costs including legal and accounting fees. We believe that it is appropriate to exclude these costs from our non-GAAP results as they would not have otherwise been incurred as part of the business operations and therefore is not reflective of ongoing operating results.
     
  • Amortization of intangible assets: We incur amortization of intangible assets as a result of acquisitions, which includes non-compete arrangements, patents, purchased technology, project pipeline assets, and in-process research and development, including the acquisition of Blue Raven. We believe that it is appropriate to exclude these amortization charges from our non-GAAP results as they arise from prior acquisitions and are non-recurring in nature, and are therefore not reflective of ongoing operating results.
     
  • (Gain) loss on business divestitures, net: In the second quarter of fiscal 2021, we sold a portion of our residential lease business and certain commercial projects. We recognized a gain and a loss relating to these business divestitures, respectively. We believe that it is appropriate to exclude such gain and loss from the company's non-GAAP financial measures as it is not reflective of ongoing operating results.
     
  • Executive transition costs: We incur non-recurring charges related to the hiring and transition of new executive officers. During fiscal 2021, we appointed a new chief executive officer, as well as other chief executives, and we are investing resources in those executive transitions, and in developing new members of management as we complete our restructuring transformation. We believe that it is appropriate to exclude these from our non-GAAP results as they are not reflective of ongoing operating results.
     
  • Acquisition-related costs: We will incur certain costs in connection with the acquisition of Blue Raven, that are either paid as part of the transaction or will be paid shortly after, but are considered post-acquisition compensation under the applicable GAAP framework due to the nature of such items. A majority of the expense incurred in fourth quarter of fiscal 2021 represents cash paid to certain employees of Blue Raven for settlement of their pre-existing share-based payment plan, in excess of the respective fair value. Other post-combination expenses include change in fair value of contingent consideration as well as deferred post-combination employment expense payable to certain Blue Raven employees and sellers. We believe that it is appropriate to exclude these from our non-GAAP results as they are directly related to the acquisition transaction and non-recurring in nature, and are therefore not reflective of ongoing operating results.
     
  • Business reorganization costs: In connection with the spin-off of Maxeon into an independent, publicly traded company, we incurred and expect to continue to incur, non-recurring charges on third-party legal and consulting expenses, primarily to enable in separation of shared information technology systems and applications. We believe that it is appropriate to exclude these from our non-GAAP results as it is not reflective of ongoing operating results.
     
  • Restructuring charges (credits): We incur restructuring expenses related to reorganization plans aimed towards realigning resources consistent with the company's global strategy and improving its overall operating efficiency and cost structure. Although the company has engaged in restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. We believe that it is appropriate to exclude these from our non-GAAP results as it is not reflective of ongoing operating results.
     
  • 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 (loss) and non-GAAP net income (loss) per diluted share. Our non-GAAP tax amount is based on estimated cash tax expense and reserves. We forecast our annual cash tax liability and allocates the tax to each quarter in a manner generally consistent with its GAAP methodology. This approach is designed to enhance investors' ability to understand the impact of our 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, or tax impact of non-recurring items.
     
  • Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to adjustments described above, we exclude the impact of the following items during the period:
  • Cash interest expense, net of interest income
  • Provision for income taxes
  • Depreciation

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

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

GAAP revenue

 

$           384,532

 

$           323,636

 

$           341,810

 

$        1,323,493

 

$        1,124,829

Adjustments based on IFRS:

                   

Legacy utility and power plant projects

 

$                     —

 

$                     —

 

$                     —

 

$                     —

 

$                  (207)

Other adjustments:

                   

Results of operations of legacy business to be exited

 

$                  (318)

 

$              (1,677)

 

$              (4,331)

 

$            (10,825)

 

$            (27,131)

Construction revenue on solar services contracts

 

$                     —

 

$                     —

 

$                     —

 

$                     —

 

$                5,392

Non-GAAP revenue

 

$           384,214

 

$           321,959

 

$           337,479

 

$        1,312,668

 

$        1,102,883

 

Adjustments to Gross Profit (Loss) / Margin: 

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

GAAP gross profit from continuing operations

 

$          51,052

 

$          59,650

 

$          75,151

 

$        221,607

 

$        167,127

Adjustments based on IFRS:

                   

Legacy utility and power plant projects

 

 

 

 

 

(34)

Legacy sale-leaseback transactions

 

 

 

 

 

20

Other adjustments:

                   

Results of operations of legacy business to be exited

 

1,586

 

291

 

110

 

5,180

 

7,412

Construction revenue on solar service contracts

 

 

 

 

 

4,735

(Gain) loss on sale and impairment of residential lease assets

 

(275)

 

(249)

 

(485)

 

(1,537)

 

(1,860)

Stock-based compensation expense

 

1,183

 

1,029

 

952

 

4,062

 

2,605

Amortization of intangible assets

 

 

 

 

 

4,759

Restructuring (credits) charges

 

 

 

(12)

 

 

(12)

Non-GAAP gross profit

 

$          53,546

 

$          60,721

 

$          75,716

 

$        229,312

 

$        184,752

                     

GAAP gross margin (%)

 

13.3         %

 

18.4         %

 

22.0         %

 

16.7         %

 

14.9         %

Non-GAAP gross margin (%)

 

13.9         %

 

18.9         %

 

22.4         %

 

17.5         %

 

16.8         %

 

Adjustments to Net Income (Loss): 

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

GAAP net income (loss) from continuing operations attributable to stockholders

 

$             20,196

 

$            (84,376)

 

$           412,475

 

$            (37,358)

 

$           599,355

Adjustments based on IFRS:

                   

Legacy utility and power plant projects

 

 

 

 

 

(34)

Legacy sale-leaseback transactions

 

 

 

 

 

20

Mark-to-market (gain) loss on equity investments

 

(68,950)

 

86,254

 

(416,456)

 

(21,712)

 

(690,818)

Other adjustments:

                   

Results of operations of legacy business to be exited

 

2,661

 

938

 

294

 

11,683

 

9,383

Construction revenue on solar service contracts

 

 

 

 

 

4,735

(Gain) loss on sale and impairment of residential lease assets

 

(275)

 

(249)

 

(693)

 

(6,494)

 

(1,815)

Litigation

 

(9,311)

 

1,623

 

3,650

 

888

 

4,530

Stock-based compensation expense

 

6,040

 

4,693

 

6,008

 

25,717

 

19,387

Amortization of intangible assets

 

1,579

 

 

 

1,579

 

4,759

(Gain) loss on business divestitures, net

 

 

 

53

 

(224)

 

(10,476)

Transaction-related costs

 

1,545

 

1,329

 

175

 

3,229

 

2,033

Executive transition costs

 

1,254

 

827

 

 

2,583

 

Business reorganization costs

 

(129)

 

1,045

 

1,537

 

2,771

 

1,537

Restructuring (credits) charges

 

191

 

(154)

 

(146)

 

803

 

1,935

(Gain) loss on convertible debt repurchased

 

 

 

540

 

 

(2,520)

Acquisition-related costs

 

18,764

 

 

 

18,764

 

Tax effect

 

13,661

 

(1,293)

 

18,699

 

10,272

 

54,314

Non-GAAP net income (loss) attributable to stockholders

 

$            (12,774)

 

$             10,637

 

$             26,136

 

$             12,501

 

$              (3,675)

 

Adjustments to Net Income (loss) per diluted share

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

Net income (loss) per diluted share

                   

Numerator:

                   

GAAP net income (loss) available to common stockholders1

 

$             20,196

 

$            (84,376)

 

$           412,475

 

$            (37,358)

 

$           599,355

Add: Interest expense on 4.00% debenture due 2023, net of tax

 

 

 

3,126

 

 

12,499

Add: Interest expense on 0.875% debenture due 2021, net of tax

 

 

 

421

 

 

1,824

GAAP net income (loss) available to common stockholders1

 

$             20,196

 

$            (84,376)

 

$           416,022

 

$            (37,358)

 

$           613,678

                     

Non-GAAP net income (loss) available to common stockholders1

 

$            (12,774)

 

$             10,637

 

$             26,136

 

$             12,501

 

$              (3,675)

                     

Denominator:

                   

GAAP weighted-average shares

 

173,019

 

172,885

 

170,267

 

172,436

 

169,801

Effect of dilutive securities:

                   

Restricted stock units

 

2,788

 

 

5,217

 

 

318

0.875% debentures due 2021

 

 

 

7,581

 

 

10,055

4.00% debentures due 2023

 

 

 

17,068

 

 

17,068

GAAP dilutive weighted-average common shares:

 

175,807

 

172,885

 

200,133

 

172,436

 

197,242

                     

Non-GAAP weighted-average shares

 

173,019

 

172,885

 

170,267

 

172,436

 

169,801

Effect of dilutive securities:

                   

Restricted stock units

 

 

2,680

 

5,216

 

2,680

 

4.00% debentures due 2023

 

 

 

17,068

 

 

Non-GAAP dilutive weighted-average common shares1

 

173,019

 

175,565

 

192,551

 

175,116

 

169,801

                     

GAAP dilutive net income  (loss) per share - continuing operations

 

$                  0.11

 

$                (0.49)

 

$                  2.08

 

$                (0.22)

 

$                  3.11

Non-GAAP dilutive net income (loss) per share - continuing operations

 

$                (0.07)

 

$                  0.06

 

$                  0.14

 

$                  0.07

 

$                (0.02)

   

1

In accordance with the if-converted method, net loss available to common stockholders excludes interest expense related to the 0.875% and 4.00% debentures if the debentures are considered converted in the calculation of net 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 loss per diluted share.

 

 

Adjusted EBITDA:

 
   

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

   

January 2,
2022

 

October 3,
2021

 

January 3,
2021

 

January 2,
2022

 

January 3,
2021

GAAP net income (loss) from continuing operations attributable to stockholders

 

$             20,196

 

$            (84,376)

 

$           412,475

 

$            (37,358)

 

$           599,355

Adjustments based on IFRS:

                   

Legacy utility and power plant projects

 

 

 

 

 

(34)

Legacy sale-leaseback transactions

 

 

 

 

 

20

Mark-to-market (gain) loss  on equity investments

 

(68,950)

 

86,254

 

(416,456)

 

(21,712)

 

(690,818)

Other adjustments:

                   

Results of operations of legacy business to be exited

 

2,661

 

938

 

294

 

11,683

 

9,383

Construction revenue on solar service contracts

 

 

 

 

 

4,735

Gain on sale and impairment of residential lease assets

 

(275)

 

(249)

 

(693)

 

(6,494)

 

(1,815)

Litigation

 

(9,311)

 

1,623

 

3,650

 

888

 

4,530

Stock-based compensation expense

 

6,040

 

4,693

 

6,008

 

25,717

 

19,387

Amortization of intangible assets

 

1,579

 

 

 

1,579

 

4,759

(Gain) loss on business divestitures, net

 

 

 

53

 

(224)

 

(10,476)

Transaction-related costs

 

1,545

 

1,329

 

175

 

3,229

 

2,033

Executive transition costs

 

1,254

 

827

 

 

2,583

 

Business reorganization costs

 

(129)

 

1,045

 

1,537

 

2,771

 

1,537

Restructuring charges

 

191

 

(154)

 

(146)

 

803

 

1,935

(Gain) loss on convertible debt repurchased

 

 

 

540

 

 

(2,520)

Acquisition-related costs

 

18,764

 

 

 

18,764

 

Cash interest expense, net of interest income

 

6,582

 

6,543

 

8,348

 

28,566

 

32,435

Provision for (benefit from) income taxes

 

9,646

 

(2,194)

 

18,834

 

4,627

 

57,550

Depreciation

 

2,633

 

1,928

 

2,893

 

11,384

 

14,752

Adjusted EBITDA

 

$              (7,574)

 

$             18,207

 

$             37,512

 

$             46,806

 

$             46,748

 

FY 2022 GUIDANCE

 

(in thousands)

FY 2022

Residential Customers

73,000 - 80,000

Residential Adjusted EBITDA/Customer1

$2,000 - $2,400

Adjusted EBITDA

$90 million -$110 million

Net Income (GAAP)

$85 million -$105 million

 

  1. Excluding Product & Digital operating expenses for Residential only.
  2. Adjusted EBITDA guidance for FY 2022 includes net adjustments that decrease GAAP net income by approximately $5 million primarily relating to the following adjustments: stock-based compensation expense, results of operations of legacy business to be exited, (gain) loss on business divestitures, net, acquisition-related costs, interest expense, depreciation and amortization, income taxes, and other non-recurring adjustments.

 

SUPPLEMENTAL DATA
(In thousands, except percentages)

 

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

 

THREE MONTHS ENDED

 
 

January 2, 2022

 

Revenue

Gross Profit / Margin

Operating expenses

Other expense

(income),

net

(Benefits from) provision for  income

taxes

Net income (loss) attributable to stockholders

 

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Research

and

development

Sales,

general

and

administrative

Restructuring (credits)

charges

(Gain) loss on sale and impairment of residential lease assets

(Gain) loss on business divestitures, net

GAAP

$  347,512

$    36,702

$         318

$           —

$    61,773

$     (9,135)

$     (1,350)

$        (236)

$           —

$           —

$           —

$           —

$           —

$           —

$           —

$    20,196

Adjustments based on IFRS:

                               

Mark-to-market (gain) loss on equity investments

(68,950)

(68,950)

Other adjustments:

                               

Results of operations of legacy business to be exited

(318)

1,350

236

539

(15)

(14)

565

2,661

(Gain) loss on sale and impairment of residential lease assets

(275)

(275)

Litigation

(9,311)

(9,311)

Executive transition costs

1,254

1,254

Stock-based compensation expense

708

475

625

4,232

6,040

Amortization of intangible assets

1,579

1,579

(Gain) loss on business divestitures, net

Business reorganization costs

(129)

(129)

Transaction-related costs

1,545

1,545

Restructuring (credits) charges

191

191

Acquisition-related costs

18,764

18,764

Tax effect

13,661

13,661

Non-GAAP

$  347,512

$    36,702

$           —

$           —

$    62,206

$     (8,660)

$           —

$           —

             

$   (12,774)

 

 

October 3, 2021

 

Revenue

Gross Profit / Margin

Operating expenses

Other expense

(income),

net

(Benefits from) provision for  income

taxes

Net income (loss) attributable to stockholders

 

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Research

and

development

Sales,

general

and

administrative

Restructuring

(credits) charges

(Gain) loss on sale and impairment of residential lease assets

(Gain) loss on business divestitures, net

GAAP

$  281,635

$    40,324

$      1,677

$           —

$    62,680

$     (2,739)

$        (208)

$          (83)

$           —

$           —

$           —

$           —

$           —

$           —

$           —

$   (84,376)

Adjustments based on IFRS:

                               

Mark-to-market (gain) loss on equity investments

86,254

86,254

Other adjustments:

                               

Results of operations of legacy business to be exited

(1,677)

208

83

469

(75)

253

938

(Gain) loss on sale and impairment of residential lease assets

(249)

(249)

Litigation

1,623

1,623

Executive transition costs

827

827

Stock-based compensation expense

677

352

624

3,040

4,693

Business reorganization costs

1,045

1,045

Transaction-related costs

1,397

(68)

1,329

Restructuring (credits) charges

(154)

(154)

Tax effect

(1,293)

(1,293)

Non-GAAP

$  281,635

$    40,324

$           —

$           —

$    63,108

$     (2,387)

$           —

$           —

             

$    10,637

 

 

January 3, 2021

 

Revenue

Gross Profit / Margin

Operating expenses

Other expense

(income),

net

(Benefits from) provision for  income

taxes

Net income (loss) attributable to stockholders

 

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Research

and

development

Sales,

general

and

administrative

Restructuring

(credits) charges

(Gain) loss on sale and impairment of residential lease assets

(Gain) loss on business divestitures, net

GAAP

$  257,932

$    79,547

$      9,959

$     (5,628)

$    61,128

$    14,133

$     (5,875)

$      5,765

$           —

$           —

$           —

$           —

$           —

$           —

$           —

$  412,475

Adjustments based on IFRS:

                               

Mark-to-market (gain) loss on equity investments

(416,456)

(416,456)

Other adjustments:

                               

Results of operations of legacy business to be exited

(9,959)

5,628

5,875

(5,765)

(4)

170

18

294

(Gain) loss on sale and impairment of residential lease assets

(485)

(208)

(693)

Litigation

3,650

3,650

Stock-based compensation expense

952

904

4,152

6,008

(Gain) loss on business divestitures, net

124

(71)

53

Business reorganization costs

1,537

1,537

Transaction-related costs

175

175

Restructuring (credits) charges

(12)

(134)

(146)

(Gain) loss on convertible debt repurchased

540

540

Tax effect

18,699

18,699

Non-GAAP

$  257,932

$    79,547

$           —

$           —

$    61,583

$    14,133

$           —

$           —

             

$    26,136

 

TWELVE MONTHS ENDED

 
 

January 2, 2022

 

Revenue

Gross Profit / Margin

Operating expenses

Other expense

(income),

net

(Benefits from) provision for  income

taxes

Net income (loss) attributable to stockholders

 

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Research

and

development

Sales,

general

and

administrative

Restructuring (credits)

charges

(Gain) loss on sale and impairment of residential lease assets

(Gain) loss on business divestitures, net

GAAP

$  1,121,203

$  191,465

$    10,814

$           11

$  234,129

$     (7,342)

$       (6,541)

$      1,361

$           —

$           —

$           —

$           —

$           —

$           —

$           —

$   (37,358)

Adjustments based on IFRS:

                               

Mark-to-market (gain) loss on equity investments

(21,712)

(21,712)

Other adjustments:

                               

Results of operations of legacy business to be exited

(10,814)

(11)

6,541

(1,361)

1,907

3,718

284

594

11,683

(Gain) loss on sale and impairment of residential lease assets

(1,537)

(4,663)

(294)

(6,494)

Litigation

888

888

Executive transition costs

2,583

2,583

Stock-based compensation expense

2,853

1,209

3,075

18,580

25,717

Amortization of intangible assets

1,579

1,579

(Gain) loss on business divestiture

(224)

(224)

Business reorganization costs

2,771

2,771

Transaction-related costs

3,476

(247)

3,229

Restructuring (credits) charges

803

803

Acquisition-related costs

18,764

18,764

Tax effect

10,272

10,272

Non-GAAP

$  1,121,203

$  191,465

$           —

$           —

$  235,445

$     (6,133)

$           —

$           —

             

$    12,501

 

 

January 3, 2021

 

Revenue

Gross Profit / Margin

Operating expenses

Other expense (income),

net

(Benefits from) provision for income

taxes

Net income (loss) attributable to stockholders

 

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Residential, Light Commercial

Commercial and Industrial Solutions

Others

Intersegment eliminations

Research

and

development

Sales,

general

and

administrative

Restructuring (credits)

charges

(Gain) loss on sale and impairment of residential lease assets

(Gain) loss on business divestitures, net

GAAP

$  842,680

$  255,018

$    65,574

$   (38,443)

$  150,596

$    23,943

$   (24,782)

$    17,370

$           —

$           —

$           —

$           —

$           —

$           —

$           —

$  599,355

Adjustments based on IFRS:

                               

Legacy utility and power plant projects

(207)

(34)

(34)

Legacy sale-leaseback transactions

20

20

Mark-to-market (gain) loss on equity investments

(690,818)

(690,818)

Other adjustments:

                               

Results of operations of legacy business to be exited

(65,574)

38,443

24,782

(17,370)

(4)

766

57

1,028

9,383

(Gain) loss on sale and impairment of residential lease assets

(1,860)

45

(1,815)

Construction revenue on solar services contracts

5,392

4,735

4,735

Litigation

4,530

4,530

Stock-based compensation expense

2,605

904

15,878

19,387

Amortization of intangible assets

4,759

4,759

(Gain) loss on business divestitures, net

(10,334)

(142)

(10,476)

Business reorganization costs

1,537

1,537

Transaction-related costs

2,033

2,033

Restructuring charges (credits)

(12)

1,947

1,935

(Gain) loss on convertible debt repurchased

(2,520)

(2,520)

Tax effect

54,314

54,314

Non-GAAP

$  848,072

$  254,811

$           —

$           —

$  156,084

$    28,668

$           —

$           —

             

$     (3,675)

 

 

SOURCE SunPower Corp.

For further information: Investors: Mike Weinstein, 510-260-8585, Mike.Weinstein@sunpower.com; Media: Sarah Spitz, 832-444-7151, Sarah.Spitz@sunpower.com