SPI Solar Announces Second-Quarter 2013 Financial Results

SPI Solar Announces Second-Quarter 2013 Financial Results

ROSEVILLE, Calif.--(BUSINESS WIRE)-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically integrated photovoltaic ("PV") solar developer, today announced its results for the second quarter ended June 30, 2013.

Total net sales for the second quarter of 2013 were $4.2 million, compared with $24.4 million for the second quarter of 2012. Construction starts with KDC Solar in New Jersey resumed in Q2 for the previously announced Imclone and Mountain Creek projects. Prospects for new projects beyond the current pipeline continue to be impacted by financial lending and solar industry conditions in general.


Total cost of goods sold for the second quarter of 2013 was $3.3 million, compared with $20.9 million for the second quarter of 2012. This reflected fewer projects initiated or completed during the second-quarter 2013 period, and the corresponding decrease in revenue.

Total operating expenses for the second quarter of 2013 were $7.4 million, compared with $6.3 million for the second quarter of 2012. Second quarter 2013 general and administrative expenses included one-time charges of $3.0 million for a bad debt reserve related to the pending collectability of a private solar project in New Jersey and $750,000 in impairment charges resulting from a change to extended payment conditions on the Greece projects. Without these one-time charges, the decline in operating expenses reflected the continued cost-reduction measures undertaken by the company.

Net loss for the second quarter of 2013 was $6.8 million, or ($0.03) per basic and diluted share. This compared with a net loss of $2.1 million, or ($0.01) per basic and diluted share, for the second quarter of 2012.

Cash and cash equivalents at June 30, 2013 were $0.2 million, compared with $17.8 million at December 31, 2012. During the first quarter of 2013, $13.0 million of construction funds provided by China Development Bank were drawn down and sent to KDC Solar to cover construction costs for the Imclone project. Short-term cash continues to be tight as the company has large amounts of pending accounts receivables from customers awaiting bank debt term financing for SPI-constructed and commissioned projects in Greece and New Jersey.

Business Outlook:

As noted in SPI Solar's fourth-quarter 2012 news release on April 3, 2013, due to difficult solar industry conditions in general, company-specific issues related to structuring third-party project financing, and delays in construction starts and completions, SPI Solar believes that providing a business outlook is not meaningful at this time. While the company will continue to file financial reports and issue earnings releases, it will not during the near term continue to hold quarterly earnings teleconferences. Should circumstances change or the markets become more predictable, SPI Solar will update investors through its reports and may re-institute quarterly earnings teleconferences.

About SPI Solar ( SOPW:OTCBB ):

SPI Solar ("SPI") (Solar Power, Inc.) is a vertically integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. Through the company's close relationship with LDK Solar, SPI extends the reach of its vertical integration from silicon to system. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities to its business, government and utility customers. For additional information visit: www.spisolar.com.

Safe Harbor Statement:

This release may contain certain "forward-looking statements" relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions. These statements involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

- Financials Attached -

 

SOLAR POWER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
(Unaudited)

       

June 30,
2013
(unaudited)

December 31,
2012

 
ASSETS
Current assets:
Cash and cash equivalents $ 172 $ 17,823
Accounts receivable, net of allowance for doubtful accounts of $4,076 and $393, respectively 17,513 43,807
Accounts receivable, related party 11,380 11,858
Notes receivable 7,007 14,120
Costs and estimated earnings in excess of billings on uncompleted contracts 18,537 31,423
Construction in progress 14,769 16,078
Inventories, net 1,403 1,618
Prepaid expenses and other current assets 4,685 4,267
Restricted cash   20   20
Total current assets 75,486 141,014
Intangible assets 1,418 1,703
Restricted cash 476 400
Accounts receivable, noncurrent 5,867 -
Notes receivable, noncurrent 38,993 -
Property, plant and equipment at cost, net 18,288 18,754
Other assets   609   958
Total assets $ 141,137 $ 162,829
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,081 $ 15,709
Accounts payable, related party 47,646 51,804
Lines of credit 7,857 10,877
Accrued liabilities 8,354 6,635
Billings in excess of costs and estimated earnings on uncompleted contracts 760 4,935
Billings in excess of costs and estimated earnings on uncompleted contracts, related party - 49
Loans payable and capital lease obligations   28,586   28,601
Total current liabilities 105,284 118,610
Financing and capital lease obligations, net of current portion 17,765 18,760
Other liabilities   1,337   1,337
Total liabilities   124,386   138,707
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, par $0.0001, 20,000,000 shares authorized; none issued and outstanding - -
Common stock, par $0.0001, 250,000,000 shares authorized; 198,214,456 and 198,214,456 shares, respectively, issued and outstanding 20 20
Additional paid in capital 50,928 48,219
Accumulated other comprehensive loss (393 ) (287 )
Accumulated deficit   (33,804 )   (23,830 )
Total stockholders' equity   16,751   24,122
Total liabilities and stockholders' equity $ 141,137 $ 162,829
 
 

 

SOLAR POWER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)

               

For the Three Months Ended
June 30,

For the Six Months Ended
June 30,

2013 2012 2013 2012
Net sales:
Net sales $ 4,199 $ 21,837 $ 5,965 $ 34,569
Net sales, related party   -   2,587   -   16,154
 
Total net sales 4,199 24,424 5,965 50,723
Cost of goods sold:
Cost of goods sold 3,194 18,446 4,481 28,795
Cost of goods sold, related party - 2,453 - 15,457
Impairment   85   -   85   -
 
Total cost of goods sold 3,279 20,899 4,566 44,252
Gross profit 920 3,525 1,399 6,471
Operating expenses:
General and administrative 6,691 2,661 8,951 5,395
Sales, marketing and customer service 439 2,153 1,178 3,004
Engineering, design and product 309 803 757 1,381
Impairment charge   -   712   -   712
 
Total operating expenses   7,439   6,329   10,886   10,492
 
Operating loss (6,519 ) (2,804 ) (9,487 ) (4,021 )
Other income (expense):
Interest expense (1,008 ) (907 ) (2,013 ) (1,824 )
Interest income 851 642 1,390 1,281
Other income (expense)   (55 )   (95 )   247   126

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