- Added 18,800 customers in Q3, entering Q4 with a backlog of
18,400 retrofit customers and 38,000 New Homes customers
- GAAP Q3 Revenue of $432
million
- Reported Q3 GAAP Net Loss of $(32)
million; adjusted EBITDA of $(1)
million
- Updated guidance for remainder of 2023
- Increased bookings 59% month-over-month in
September
- More than doubled SunPower Financial bookings growth
quarter-over-quarter, attach rates exceed 50%
RICHMOND, Calif., Nov. 1, 2023
/PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR), a leading residential
solar technology and energy services provider, today announced
preliminary financial results for the third quarter, ending
October 1, 2023.
"We are reducing our 2023 guidance due to lower-than-expected
consumer demand as well as delayed revenue recognition from longer
cycle times," said Peter Faricy,
SunPower CEO. "We are focused on continuing to reduce costs while
prudently managing cash. With this emphasis, we are prioritizing
our efforts to build a stronger and more resilient company that can
withstand changing market conditions."
"Under these conditions, SunPower is competing effectively in a
difficult market and continues to gain market share†.
There are also some early signs of recovery in September and
October, and our battery and financial products customer attachment
rates are at all-time highs," continued Faricy.
Updated 2023 Guidance
Net Loss
(GAAP)
|
$(175) million -
$(165) million
|
Residential
Customers
|
70,000-80,000
|
Residential Adjusted
EBITDA/Customer1
|
$600 -
$700
|
Adjusted
EBITDA2
|
$(35) million -
$(25) million
|
|
|
1.
|
Excluding Product &
Digital operating expenses for Residential only.
|
2.
|
Adjusted EBITDA
guidance for FY 2023 includes net adjustments that decrease GAAP
net loss by approximately $140 million primarily relating to the
following adjustments: stock-based compensation expense of $29
million, restructuring charges of $13 million, mark-to-market
(gain) loss on equity investments, net of $11 million, amortization
of intangible assets and software of $12 million, interest expense
of $23 million, depreciation of $46 million, income taxes of $1
million, and other non-recurring adjustments of $5
million.
|
The company reduced 2023 guidance for GAAP net loss to
$(175) million to $(165) million.
Guidance for Adjusted EBITDA per customer before platform
investment was reduced to $600 -
$700 to reflect installation and
other costs spread over fewer customers than anticipated, delayed
revenue recognition from longer cycle-times as well as higher
year-over-year installation cost, and cost of goods sold impacted
by inventory carried at cost higher than current
market.
The company increased guidance for Platform Investment to
$70 million - $90 million for the year, primarily to reflect
higher legacy business unit costs and the restatement of
prior-period inventory value.
Guidance for adjusted EBITDA for the year was reduced to
$(35) million to $(25) million.
Form 8-K regarding Non-Reliance on Previously Issued
Financial Statements
The company recently announced in a Form 8-K filing that it
plans to restate, as soon as practicable, the financial statements
for fiscal year 2022, first quarter 2023 and second quarter 2023.
In connection with the preparation of the financial statements, the
company preliminarily determined that the value of consignment
inventory of microinverter components at certain third-party
locations had been overstated in the above periods in the range of
approximately $16 million to
$20 million, resulting in the
associated cost of revenue being understated. At this time, the
Company has not fully completed its review, and the expected
financial impact of the restatement described above is preliminary
and subject to change.
THIRD QUARTER BUSINESS HIGHLIGHTS
"While the industry-wide softness continued into the third
quarter, we saw positive signs in September and early October,
including our highest-ever month for storage sales, strong growth
in SunPower Financial, and improvement in consumer demand,"
continued Faricy.
World-class customer experience
- Highest-rated solar company: In the third quarter,
SunPower remained the top-rated solar company in the U.S. ^
- Modernized support experience for faster and more
transparent customer care: In October, SunPower unveiled a new
Help Center that allows customers to track and manage their support
cases, chat with an agent in real-time, or request a callback
directly through the mySunPower app or mySunPower.com, making
customer care simpler and faster than ever.
Best, most affordable products
- Storage sales surge: In the third quarter, the company
saw continued momentum for SunVault® battery storage with
sales up 163% quarter-over-quarter, making September the company's
largest ever month for battery sales. SunVault attach rates in
Calif. grew to more than 60% in the SunPower Direct channel, more
than four times higher than the first quarter.
Growth
- Topline growth: SunPower rebounded solar adoption in the
third quarter, with September retrofit bookings up nearly 60% from
August. The company also added 88 new dealers to its network in the
third quarter, expanding coverage in key states including
Texas and Florida.
- Continues to expand New Homes outside California: In the third quarter,
SunPower's New Homes business signed a number of builder agreements
for solar communities across the U.S. including with Meritage Homes
in Colo., CC Homes in Fla., Toll Brothers in Mass., Nev. and NY,
and Beazer Homes in Del. and
Md.
Digital innovation
- Accelerated solar purchases with digital enhancements:
This quarter, SunPower automated its sales processes to
significantly speed the time it takes for customers to speak with
SunPower about acquiring products and services. Since launch, the
company reduced time to contact by more than 90%. SunPower also
released a new sales proposal for New Homes customers allowing
builders to easily compare financing and equipment options in a
single view, streamlining the purchase process.
World-class financial solutions
- Lease bookings driving financial product growth:
SunPower Financial™ continued to drive growth in the third
quarter with a 56% attach rate for finance solutions, a 20%
increase year-over-year. In the third quarter, the company
continued to increase lease bookings, with total third quarter
Lease Net Bookings growing 217% year-over-year.
- Expanding lease with ADT: SunPower also completed the
first phase of its sales agreement with ADT Solar, now offering
lease and PPA to ADT Solar customers in seven states.
†Ohm Analytics Permit
Data Trends (September 2023) and SunPower/Blue Raven permit data by
state, excluding New Homes.
|
^ Based on average of
BBB, Yelp, ConsumerAffairs, BestCompany, Google, SolarReviews and
EnergySage reviews scores as of 9/30/23
|
Financial Highlights
($ Millions, except
percentages, residential customers, and per-share
data)
|
3rd Quarter
2023
|
3rd Quarter
20221
|
|
|
(As
Restated)
|
GAAP revenue from
continuing operations
|
$432.0
|
$476.3
|
GAAP gross margin from
continuing operations
|
15.4 %
|
22.2 %
|
GAAP net (loss) income
from continuing operations
|
$(30.0)
|
$137.6
|
GAAP net (loss) income
from continuing operations per diluted share
|
$(0.17)
|
$0.73
|
Non-GAAP revenue from
continuing operations2, 5
|
$432.2
|
$476.3
|
Non-GAAP gross margin
from continuing operations2, 4, 5
|
15.5 %
|
22.4 %
|
Non-GAAP net (loss)
income from continuing operations2, 4, 5
|
$(20.3)
|
$14.0
|
Non-GAAP net (loss)
income from continuing operations per diluted share2, 4,
5
|
$(0.12)
|
$0.08
|
Adjusted EBITDA2,
4, 5
|
$(0.8)
|
$25.3
|
Residential
customers
|
570,500
|
486,700
|
Cash3
|
$103.7
|
$396.5
|
|
The sale of our C&I
Solutions business met the criteria for classification as
"discontinued operations" in accordance with U.S. GAAP beginning
the first quarter of fiscal 2022. For all periods presented, the
financial results of C&I Solutions are excluded in the table
above.
|
1 Historical
comparisons are preliminary estimates ahead of the forthcoming
restatement of current and prior-period financials as disclosed in
our Oct 24, 2023 8-K filing.
|
2
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.
|
3 Includes
cash and cash equivalents, excluding restricted cash.
|
4 Beginning in the second quarter of
fiscal 2023, we are no longer excluding non-GAAP adjustments
related to "Transition Costs" from our non-GAAP results, and have
adjusted all comparative periods to reflect the current
presentation.
|
5
Beginning in the second quarter of fiscal 2023, we are no longer
excluding non-GAAP adjustments related to "Results of operations of
businesses exited/to be exited" from our non-GAAP results, with the
exception of certain charges related to our legacy power plant and
development projects sold in fiscal 2018 and 2019. All comparative
periods have been adjusted to reflect the current
presentation.
|
Earnings Conference Call Information
SunPower will
discuss its third quarter 2023 financial results on Wednesday, Nov. 1 at 8:00
a.m. ET. Analysts intending to participate in the Q&A
session must register for a personal link and dial-in at:
https://register.vevent.com/register/BI96173d8484274738917b9dc19795f661.
The results are scheduled to be released at 7:45 a.m. ET. The live audio webcast and
supplemental financial information will be available on SunPower's
investor website at http://investors.sunpower.com/events.cfm.
About SunPower
SunPower (NASDAQ:SPWR) is a leading residential solar technology
and energy services provider in North
America. SunPower offers solar + storage solutions designed
and warranted by one company that give customers control over
electricity consumption and resiliency during power outages while
providing cost savings. 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. Forward-looking statements often address expected future
business and financial performance, and often contain words such as
"believe," "expect," "anticipate," "intend," "plan," or "will." By
their nature, forward-looking statements address matters that are
subject to risks and uncertainties. Any such forward-looking
statements may involve risk and uncertainties that could cause
actual results to differ materially from any future results
encompassed within the forward-looking statements. All statements,
other than statements of historical fact, are forward-looking
statements. Examples of such forward-looking statements include,
but are not limited to, statements regarding: (a) our guidance for
fiscal year 2023, including, but not limited to, Net Loss (GAAP),
residential customers, residential Adjusted EBITDA per customer,
incremental customers, and Adjusted EBITDA, as well as platform
investments and related assumptions; (b) expectations regarding
demand and our future performance based on backlog, bookings,
projected consumer demand, and pipelines in our sales channels and
for our products, and our ability to meet consumer demand; (c) our
plans and expectations with respect to our strategic partnerships
and initiatives, and the anticipated business and financial impacts
thereof; (d) our strategic plans and areas of investment and focus,
both current and future, and expectations for the results thereof,
including improved customer experience, lease and loan funding
capacity, increased installation capacity, and development of new
products and services; (e) our expectations regarding projected
demand and growth in 2023 and beyond, our positioning for future
success, and our ability to capture demand and deliver long-term
value to our shareholders; (f) our expectations for industry trends
and factors, and the impact thereof on our business and strategic
plans; (g) the availability and sufficiency of the supply of
products and raw materials to meet consumer demand; (h) our
expectations with regard to any restated items in our financial
statements for the periods disclosed herein and the estimated
amounts and impacts thereof, and the anticipated timing of the
filing of our financial statements for such periods with the
Securities and Exchange Commission (SEC); (i) expectations
regarding the terms and conditions of any potential consent or
waiver under the Credit Agreement, and the timing thereof; and (j)
the effectiveness of the company's disclosure controls and
procedures and internal control over financial reporting.
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, and other factors; (3) competition in the solar
and general energy industry, supply chain constraints, interest
rates, inflation, and pricing pressures; (4) changes in public
policy, including the imposition and applicability of tariffs and
duties; (5) our dependence on sole- or limited-source supply
relationships, including for our solar panels and other components
of our products; (6) 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; (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; (9) challenges managing our
acquisitions, joint ventures, and partnerships, including our
ability to successfully manage acquired assets and supplier
relationships; (10) the time and effort required to complete the
restatement and amend the related Form 10-K and Form 10-Q filings,
and the subsequent discovery of additional adjustments to our
previously issued financial statements; (11) the timing and
execution of restructuring plans; (12) our ability to obtain a
waiver and consent to our Credit Agreement, and the timing and
outcome thereof; and (13) our ability to remediate the material
weakness related to internal control over financial reporting.
A detailed discussion of these factors and other risks
that affect our business is included in filings we make with the
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.
©2023 SunPower Corporation. All rights reserved. SUNPOWER, the
SUNPOWER logo, SUNPOWER FINANCIAL, MYSUNPOWER and SUNVAULT are
trademarks or registered trademarks of SunPower Corporation in the
U.S.
SUNPOWER CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
October 1,
2023
|
|
January 1,
2023
|
|
|
|
(As
Restated)
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
103,683
|
|
$
377,026
|
Restricted cash and
cash equivalents, current portion
|
2,728
|
|
9,855
|
Short-term
investments
|
—
|
|
132,480
|
Accounts receivable,
net
|
203,640
|
|
169,614
|
Contract
assets
|
37,128
|
|
57,070
|
Loan receivables held
for sale, net
|
17,041
|
|
—
|
Inventories
|
327,754
|
|
297,263
|
Advances to suppliers,
current portion
|
6,487
|
|
12,059
|
Prepaid expenses and
other current assets
|
232,926
|
|
195,846
|
Total current
assets
|
931,387
|
|
1,251,213
|
|
|
|
|
Restricted cash and
cash equivalents, net of current portion
|
9,548
|
|
15,151
|
Property, plant and
equipment, net
|
106,069
|
|
76,361
|
Operating lease
right-of-use assets
|
32,534
|
|
36,786
|
Solar power systems
leased, net
|
38,845
|
|
41,779
|
Goodwill
|
125,998
|
|
125,998
|
Other intangible
assets, net
|
19,830
|
|
24,192
|
Other long-term
assets
|
195,429
|
|
191,340
|
Total assets
|
$
1,459,640
|
|
$
1,762,820
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
181,359
|
|
$
243,050
|
Accrued
liabilities
|
107,556
|
|
126,125
|
Operating lease
liabilities, current portion
|
10,846
|
|
11,289
|
Contract liabilities,
current portion
|
231,019
|
|
140,776
|
Short-term
debt
|
4,080
|
|
82,240
|
Convertible debt,
current portion
|
—
|
|
424,919
|
Current liabilities of
discontinued operations
|
25,096
|
|
20,781
|
Total current
liabilities
|
559,956
|
|
1,049,180
|
|
|
|
|
Long-term
debt
|
302,550
|
|
308
|
Operating lease
liabilities, net of current portion
|
24,328
|
|
29,274
|
Contract liabilities,
net of current portion
|
9,746
|
|
10,529
|
Other long-term
liabilities
|
117,994
|
|
103,495
|
Long-term liabilities
of discontinued operations
|
11,930
|
|
12,412
|
Total
liabilities
|
1,026,504
|
|
1,205,198
|
|
|
|
|
Equity:
|
|
|
|
Common
stock
|
175
|
|
174
|
Additional paid-in
capital
|
2,853,487
|
|
2,855,930
|
Accumulated
deficit
|
(2,199,397)
|
|
(2,084,207)
|
Accumulated other
comprehensive income
|
11,569
|
|
11,568
|
Treasury stock, at
cost
|
(233,626)
|
|
(226,646)
|
Total stockholders'
equity
|
432,208
|
|
556,819
|
Noncontrolling
interests in subsidiaries
|
928
|
|
803
|
Total
equity
|
433,136
|
|
557,622
|
Total liabilities and
equity
|
$
1,459,640
|
|
$
1,762,820
|
SUNPOWER CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
Total
revenues
|
|
$
432,000
|
|
$
476,250
|
|
$ 1,331,717
|
|
$ 1,245,137
|
Total cost of
revenues
|
|
365,640
|
|
370,575
|
|
1,131,187
|
|
994,764
|
Gross profit
|
|
66,360
|
|
105,675
|
|
200,530
|
|
250,373
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
5,406
|
|
6,784
|
|
19,161
|
|
19,199
|
Sales, general, and
administrative
|
|
83,076
|
|
89,737
|
|
254,786
|
|
257,955
|
Restructuring charges
(credits)
|
|
5,873
|
|
111
|
|
5,873
|
|
244
|
Expense (income) from
transition services agreement, net
|
|
170
|
|
(1,059)
|
|
30
|
|
(1,287)
|
Total operating
expenses
|
|
94,525
|
|
95,573
|
|
279,850
|
|
276,111
|
Operating (loss)
income
|
|
(28,165)
|
|
10,102
|
|
(79,320)
|
|
(25,738)
|
Other (expense) income,
net:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,096
|
|
144
|
|
2,256
|
|
278
|
Interest
expense
|
|
(6,596)
|
|
(3,712)
|
|
(18,060)
|
|
(15,224)
|
Other, net
|
|
103
|
|
135,368
|
|
(10,591)
|
|
122,160
|
Other (expense)
income, net
|
|
(5,397)
|
|
131,800
|
|
(26,395)
|
|
107,214
|
(Loss) income from
continuing operations before income taxes and equity in earnings
(losses) of unconsolidated investees
|
|
(33,562)
|
|
141,902
|
|
(105,715)
|
|
81,476
|
Benefits from
(provision for) income taxes
|
|
202
|
|
(3,055)
|
|
(1,192)
|
|
5,425
|
Equity in earnings
(losses) of unconsolidated investees
|
|
3,362
|
|
1,958
|
|
3,920
|
|
1,958
|
Net (loss) income from
continuing operations
|
|
(29,998)
|
|
140,805
|
|
(102,987)
|
|
88,859
|
(Loss) income from
discontinued operations before income taxes and equity in earnings
(losses) of unconsolidated investees
|
|
(1,924)
|
|
(2,395)
|
|
(12,080)
|
|
(49,550)
|
Benefits from
(provision for) income taxes from discontinued
operations
|
|
—
|
|
—
|
|
—
|
|
584
|
Net (loss) income from
discontinued operations
|
|
(1,924)
|
|
(2,395)
|
|
(12,080)
|
|
(48,966)
|
Net (loss)
income
|
|
(31,922)
|
|
138,410
|
|
(115,067)
|
|
39,893
|
Net (income) loss from
continuing operations attributable to noncontrolling
interests
|
|
(29)
|
|
(3,225)
|
|
(124)
|
|
(3,671)
|
Net loss (income) from
discontinued operations attributable to noncontrolling
interests
|
|
—
|
|
—
|
|
—
|
|
250
|
Net (income) loss
attributable to noncontrolling interests
|
|
(29)
|
|
(3,225)
|
|
(124)
|
|
(3,421)
|
Net (loss) income from
continuing operations attributable to stockholders
|
|
(30,027)
|
|
137,580
|
|
(103,111)
|
|
85,188
|
Net (loss) income from
discontinued operations attributable to stockholders
|
|
(1,924)
|
|
(2,395)
|
|
(12,080)
|
|
(48,716)
|
Net (loss) income
attributable to stockholders
|
|
$
(31,951)
|
|
$
135,185
|
|
$
(115,191)
|
|
$
36,472
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share attributable to stockholders - basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.17)
|
|
$
0.79
|
|
$
(0.59)
|
|
$
0.49
|
Discontinued
operations
|
|
$
(0.01)
|
|
$
(0.01)
|
|
$
(0.07)
|
|
$
(0.28)
|
Net (loss) income per
share – basic
|
|
$
(0.18)
|
|
$
0.78
|
|
$
(0.66)
|
|
$
0.21
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share attributable to stockholders - diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.17)
|
|
$
0.73
|
|
$
(0.59)
|
|
$
0.44
|
Discontinued
operations
|
|
$
(0.01)
|
|
$
(0.01)
|
|
$
(0.07)
|
|
$
(0.25)
|
Net (loss) income per
share – diluted
|
|
$
(0.18)
|
|
$
0.72
|
|
$
(0.66)
|
|
$
0.19
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
175,241
|
|
174,118
|
|
174,937
|
|
173,815
|
Diluted
|
|
175,241
|
|
192,497
|
|
174,937
|
|
174,521
|
SUNPOWER CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(31,922)
|
|
$
138,410
|
|
$
(115,067)
|
|
$
39,893
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
14,017
|
|
6,720
|
|
37,193
|
|
22,208
|
Amortization of cloud
computing arrangements
|
|
1,439
|
|
1,557
|
|
4,251
|
|
3,549
|
Stock-based
compensation
|
|
5,603
|
|
6,557
|
|
21,139
|
|
19,056
|
Amortization of debt
issuance costs
|
|
369
|
|
997
|
|
1,532
|
|
2,556
|
Equity in (earnings)
losses of unconsolidated investees
|
|
(3,362)
|
|
(1,958)
|
|
(3,920)
|
|
(1,958)
|
(Gain) loss on equity
investments
|
|
—
|
|
(134,905)
|
|
10,805
|
|
(120,965)
|
Unrealized (gain) loss
on derivatives
|
|
(1,036)
|
|
(2,808)
|
|
(1,330)
|
|
(2,304)
|
Dividend from equity
method investee
|
|
—
|
|
133
|
|
596
|
|
133
|
Deferred income
taxes
|
|
58
|
|
(1,410)
|
|
(474)
|
|
(12,606)
|
(Gain) loss on loan
receivables held for sale
|
|
972
|
|
—
|
|
1,430
|
|
—
|
Other, net
|
|
360
|
|
(821)
|
|
935
|
|
128
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
16,148
|
|
(27,271)
|
|
(34,964)
|
|
(65,035)
|
Contract
assets
|
|
12,229
|
|
(6,371)
|
|
19,942
|
|
(318)
|
Inventories
|
|
75,877
|
|
(7,103)
|
|
(30,492)
|
|
(14,202)
|
Project
assets
|
|
3
|
|
—
|
|
3
|
|
295
|
Loan receivables held
for sale
|
|
(5,096)
|
|
—
|
|
(18,471)
|
|
—
|
Prepaid expenses and
other assets
|
|
(4,600)
|
|
(38,245)
|
|
(28,255)
|
|
(206,387)
|
Operating lease
right-of-use assets
|
|
2,882
|
|
3,133
|
|
8,258
|
|
8,757
|
Advances to
suppliers
|
|
(1,842)
|
|
(4,216)
|
|
5,572
|
|
(6,288)
|
Accounts payable and
other accrued liabilities
|
|
(35,086)
|
|
32,843
|
|
(65,951)
|
|
77,871
|
Contract
liabilities
|
|
7,465
|
|
31,196
|
|
89,460
|
|
97,614
|
Operating lease
liabilities
|
|
(3,397)
|
|
(4,090)
|
|
(9,391)
|
|
(11,972)
|
Net cash (used in)
provided by operating activities
|
|
51,081
|
|
(7,652)
|
|
(107,199)
|
|
(169,975)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(13,226)
|
|
(12,961)
|
|
(39,509)
|
|
(36,958)
|
Investments in
software development costs
|
|
(2,329)
|
|
(1,500)
|
|
(4,649)
|
|
(4,225)
|
Cash paid for working
capital settlement related to C&I Solutions sale
|
|
—
|
|
—
|
|
(30,892)
|
|
—
|
Cash received from
C&I Solutions sale, net of de-consolidated cash
|
|
—
|
|
—
|
|
—
|
|
146,303
|
Cash paid for equity
investments under the Dealer Accelerator Program and
other
|
|
—
|
|
(14,500)
|
|
(7,500)
|
|
(30,920)
|
Proceeds from sale of
equity investment
|
|
—
|
|
290,278
|
|
121,675
|
|
440,108
|
Cash paid for
investments in unconsolidated investees
|
|
(1,393)
|
|
(2,424)
|
|
(9,070)
|
|
(5,742)
|
Dividend from equity
method investee, in excess of cumulative earnings
|
|
—
|
|
137
|
|
149
|
|
137
|
Net cash (used in)
provided by investing activities
|
|
(16,923)
|
|
259,030
|
|
30,229
|
|
508,703
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
loans and other debt
|
|
54,339
|
|
24,453
|
|
493,440
|
|
124,729
|
Repayment of bank
loans and other debt
|
|
(101,841)
|
|
(69,010)
|
|
(267,482)
|
|
(166,901)
|
Repayment of
convertible debt
|
|
—
|
|
—
|
|
(424,991)
|
|
—
|
Payments for financing
leases
|
|
(1,285)
|
|
(617)
|
|
(3,091)
|
|
(728)
|
Purchases of stock for
tax withholding obligations on vested restricted stock
|
|
(686)
|
|
(874)
|
|
(6,979)
|
|
(10,462)
|
Net cash (used in)
provided by financing activities
|
|
(49,473)
|
|
(46,048)
|
|
(209,103)
|
|
(53,362)
|
Net (decrease) increase
in cash, cash equivalents, and restricted cash
|
|
(15,315)
|
|
205,330
|
|
(286,073)
|
|
285,366
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
131,274
|
|
228,649
|
|
402,032
|
|
148,613
|
Cash, cash equivalents,
and restricted cash, end of period
|
|
$
115,959
|
|
$
433,979
|
|
$
115,959
|
|
$
433,979
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets, including discontinued
operations:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
103,683
|
|
$
396,510
|
|
$
103,683
|
|
$
396,510
|
Restricted cash and
cash equivalents, current portion
|
|
2,728
|
|
13,204
|
|
2,728
|
|
13,204
|
Restricted cash and
cash equivalents, net of current portion
|
|
9,548
|
|
24,265
|
|
9,548
|
|
24,265
|
Total cash, cash
equivalents, and restricted cash
|
|
$
115,959
|
|
$
433,979
|
|
$
115,959
|
|
$
433,979
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash activities:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment acquisitions funded by liabilities (including financing
leases)
|
|
$
6,239
|
|
$
4,495
|
|
$
14,956
|
|
$
9,082
|
Right-of-use assets
obtained in exchange of lease obligations
|
|
197
|
|
12,479
|
|
4,006
|
|
12,988
|
Net working capital
settlement related to C&I Solutions sale
|
|
—
|
|
740
|
|
—
|
|
7,005
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
7,257
|
|
9,137
|
|
25,261
|
|
20,323
|
Cash paid for income
taxes
|
|
206
|
|
2,687
|
|
1,442
|
|
5,187
|
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) income; net (loss) income 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.
We exclude the following adjustments from our non-GAAP financial
measures:
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
subsidiary and equity method investee of TotalEnergies SE, 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 subsidiary and equity method investee of
TotalEnergies SE and better reflects our ongoing results.
Other Non-GAAP Adjustments
- Legacy power plant and development projects: We exclude from
our Non-GAAP results adjustments to variable consideration
resulting from the true-up of estimated milestone payments for two
legacy power plant projects sold in fiscal 2018 and 2019. We
believe that it is appropriate to exclude such charges from our
non-GAAP results as they are not reflective of ongoing operating
results.
- Loss/Gain 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 our residential lease
business and retained a 51% membership interest. We recorded
impairment charges based on the expected fair value for a portion
of residential lease assets portfolio that was retained.
Depreciation savings from the unsold residential lease assets
resulting from their exclusion from non-GAAP results historically,
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 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 and software: We incur
amortization of intangible assets as a result of acquisitions,
primarily from the Blue Raven acquisition, which includes brand,
non-compete arrangements, and purchased technology. In addition, we
also incur amortization of our capitalized internal-use software
costs once the software has been placed into service, until the end
of the useful life of the software. We believe that it is
appropriate to exclude these amortization charges from our non-GAAP
results as they are non-recurring in nature, and are therefore not
reflective of ongoing operating results.
- Acquisition-related costs: We incurred certain costs in
connection with the acquisition of Blue Raven, that are either paid
as part of the transaction or will be paid in the coming year, but
are considered post-acquisition compensation under the applicable
GAAP framework due to the nature of such items. For fiscal 2022,
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
non-recurring charges on third-party legal and consulting expenses,
primarily to enable in separation of shared information technology
systems and applications. In addition, we incurred certain
non-recurring costs upon amendment, settlement or termination of
historical agreements with Maxeon to fully enable separate
independent operations of the two companies that is focused on our
respective core business. 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.
- Equity (income) loss from unconsolidated investees: We account
for our minority investments in dealers included in the Dealer
Accelerator Program using the equity method of accounting and
recognize our proportionate share of the reported earnings or
losses of the investees through net income. We do not control or
manage the investees' business operations and operating and
financial policies. Therefore, we believe that it is appropriate to
exclude these from our non-GAAP results as it is not reflective of
ongoing operating results.
- Mark-to-market loss (gain) on interest rate swaps: We recognize
changes in fair value of our interest rate swaps as mark-to-market
gains or losses, excluding final settlements, and record within
"interest expense" and "total revenues" within our condensed
consolidated statements of operations dependent on the risk that is
being economically hedged and mitigated by the interest rate swap.
Such fair value changes are not necessarily indicative of the
actual settlement value of the underlying interest rate swap, thus,
we believe that excluding these adjustments from our non-GAAP
results is appropriate and allows investors to better understand
and analyze our 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
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
GAAP revenue
|
|
$
432,000
|
|
$
476,250
|
|
$ 1,331,717
|
|
$ 1,245,137
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
Legacy power plant and
development projects1
|
|
—
|
|
—
|
|
—
|
|
7,239
|
Mark-to-market loss
(gain) on interest rate swaps
|
|
171
|
|
—
|
|
91
|
|
—
|
Non-GAAP
revenue
|
|
$
432,171
|
|
$
476,250
|
|
$ 1,331,808
|
|
$ 1,252,376
|
|
1 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Results of operations of
businesses exited/to be exited" from our non-GAAP results, with the
exception of certain charges related to our legacy power plant and
development projects sold in fiscal 2018 and 2019. All comparative
periods have been adjusted to reflect the current
presentation.
|
Adjustments to Gross
Profit Margin:
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
GAAP gross profit from
continuing operations
|
|
$
66,360
|
|
$ 105,675
|
|
$ 200,530
|
|
$ 250,373
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
Legacy power plant and
development projects1
|
|
—
|
|
—
|
|
—
|
|
7,239
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
(266)
|
|
(276)
|
|
(800)
|
|
(833)
|
Stock-based
compensation expense
|
|
887
|
|
1,135
|
|
4,041
|
|
3,432
|
Business
reorganization costs
|
|
—
|
|
—
|
|
—
|
|
11
|
Transaction-related
costs
|
|
—
|
|
—
|
|
—
|
|
162
|
Mark-to-market loss
(gain) on interest rate swaps
|
|
171
|
|
—
|
|
91
|
|
—
|
Litigation
|
|
—
|
|
—
|
|
62
|
|
—
|
Non-GAAP gross
profit2
|
|
$
67,152
|
|
$ 106,534
|
|
$ 203,924
|
|
$ 260,384
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
(%)
|
|
15.4 %
|
|
22.2 %
|
|
15.1 %
|
|
20.1 %
|
Non-GAAP gross margin
(%)
|
|
15.5 %
|
|
22.4 %
|
|
15.3 %
|
|
20.8 %
|
|
1 Beginning in the second quarter of
fiscal 2023, we are no longer excluding non-GAAP adjustments
related to "Results of operations of businesses exited/to be
exited" from our non-GAAP results, with the exception of certain
charges related to our legacy power plant and development projects
sold in fiscal 2018 and 2019. All comparative periods have been
adjusted to reflect the current presentation.
|
2 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Transition Costs" from our
non-GAAP results, and have adjusted all comparative periods to
reflect the current presentation.
|
Adjustments to Net
(Loss) Income:
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
GAAP net (loss) income
from continuing operations attributable to stockholders
|
|
$
(30,027)
|
|
$
137,580
|
|
$
(103,111)
|
|
$
85,188
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
Mark-to-market (gain)
loss on equity investments
|
|
(2,177)
|
|
(137,233)
|
|
8,628
|
|
(123,293)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
Legacy power plant and
development projects1
|
|
—
|
|
—
|
|
—
|
|
7,239
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
(266)
|
|
(276)
|
|
(800)
|
|
(833)
|
Litigation
|
|
291
|
|
488
|
|
419
|
|
3,571
|
Stock-based
compensation expense
|
|
5,603
|
|
6,550
|
|
21,140
|
|
18,933
|
Amortization of
intangible assets and software
|
|
2,850
|
|
2,853
|
|
8,566
|
|
7,707
|
Transaction-related
costs
|
|
76
|
|
144
|
|
842
|
|
1,557
|
Business
reorganization costs
|
|
—
|
|
5
|
|
—
|
|
4,526
|
Restructuring charges
(credits)
|
|
5,880
|
|
—
|
|
5,880
|
|
(453)
|
Acquisition-related
costs
|
|
—
|
|
3,338
|
|
(197)
|
|
11,456
|
Equity (income) loss
from unconsolidated investees
|
|
(1,185)
|
|
(158)
|
|
(1,743)
|
|
(158)
|
Mark-to-market (gain)
loss on interest rate swaps
|
|
(1,035)
|
|
(2,808)
|
|
(1,329)
|
|
(2,304)
|
Tax effect
|
|
(299)
|
|
3,535
|
|
552
|
|
(6,120)
|
Non-GAAP net (loss)
income from continuing operations attributable to
stockholders2
|
|
$
(20,289)
|
|
$
14,018
|
|
$
(61,153)
|
|
$
7,016
|
|
1 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Results of operations of
businesses exited/to be exited" from our non-GAAP results, with the
exception of certain charges related to our legacy power plant and
development projects sold in fiscal 2018 and 2019. All comparative
periods have been adjusted to reflect the current
presentation.
|
2 Beginning in the second quarter of
fiscal 2023, we are no longer excluding non-GAAP adjustments
related to "Transition Costs" from our non-GAAP results, and have
adjusted all comparative periods to reflect the current
presentation.
|
Adjustments to Net
(Loss) Income per diluted share:
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
Net (loss) income per
diluted share
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
GAAP net (loss) income
from continuing operations attributable to
stockholders1
|
|
$
(30,027)
|
|
$
137,580
|
|
$
(103,111)
|
|
$
85,188
|
Add: Interest expense
on 4.00% debenture due 2023, net of tax
|
|
—
|
|
3,026
|
|
—
|
|
—
|
GAAP net (loss) income
from continuing operations attributable to
stockholders1
|
|
$
(30,027)
|
|
$
140,606
|
|
$
(103,111)
|
|
$
85,188
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss)
income from continuing operations attributable to
stockholders1, 2, 3
|
|
$
(20,289)
|
|
$
14,018
|
|
$
(61,153)
|
|
$
7,016
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
GAAP weighted-average
shares
|
|
175,241
|
|
174,118
|
|
174,937
|
|
173,815
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Restricted stock
units
|
|
—
|
|
1,311
|
|
—
|
|
706
|
4.00% debentures due
2023
|
|
—
|
|
17,068
|
|
—
|
|
—
|
GAAP dilutive
weighted-average common shares:
|
|
175,241
|
|
192,497
|
|
174,937
|
|
174,521
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted-average shares
|
|
175,241
|
|
174,118
|
|
174,937
|
|
173,815
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Restricted stock
units
|
|
—
|
|
1,311
|
|
—
|
|
706
|
Non-GAAP dilutive
weighted-average common shares1
|
|
175,241
|
|
175,429
|
|
174,937
|
|
174,521
|
|
|
|
|
|
|
|
|
|
GAAP dilutive net
(loss) income per share - continuing operations
|
|
$
(0.17)
|
|
$
0.73
|
|
$
(0.59)
|
|
$
0.49
|
Non-GAAP dilutive net
(loss) income per share - continuing operations2,
3
|
|
$
(0.12)
|
|
$
0.08
|
|
$
(0.35)
|
|
$
0.04
|
|
1 In
accordance with the if-converted method, net (loss) income
available to common stockholders excludes interest expense related
to the 4.00% debentures if the debentures are considered converted
in the calculation of net (loss) income 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 (loss) per diluted share.
|
2 Beginning in the second quarter of
fiscal 2023, we are no longer excluding non-GAAP adjustments
related to "Results of operations of businesses exited/to be
exited" from our non-GAAP results, with the exception of certain
charges related to our legacy power plant and development projects
sold in fiscal 2018 and 2019. All comparative periods have been
adjusted to reflect the current presentation.
|
3 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Transition Costs" from our
non-GAAP results, and have adjusted all comparative periods to
reflect the current presentation.
|
Adjusted
EBITDA:
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
October 1,
2023
|
|
October 2,
2022
|
|
October 1,
2023
|
|
October 2,
2022
|
|
|
|
|
(As
Restated)
|
|
(As
Restated)
|
GAAP net (loss) income
from continuing operations attributable to stockholders
|
|
$
(30,027)
|
|
$
137,580
|
|
$
(103,111)
|
|
$
85,188
|
Adjustments based on
IFRS:
|
|
|
|
|
|
|
|
|
Mark-to-market (gain)
loss on equity investments
|
|
(2,177)
|
|
(137,233)
|
|
8,628
|
|
(123,293)
|
Other
adjustments:
|
|
|
|
|
|
|
|
|
Legacy power plant and
development projects1
|
|
—
|
|
—
|
|
—
|
|
7,239
|
(Gain) loss on sale
and impairment of residential lease assets
|
|
(266)
|
|
(276)
|
|
(800)
|
|
(833)
|
Litigation
|
|
291
|
|
488
|
|
419
|
|
3,571
|
Stock-based
compensation expense
|
|
5,603
|
|
6,550
|
|
21,140
|
|
18,933
|
Amortization of
intangible assets and software
|
|
2,850
|
|
2,853
|
|
8,566
|
|
7,707
|
Transaction-related
costs
|
|
76
|
|
144
|
|
842
|
|
1,557
|
Business
reorganization costs
|
|
—
|
|
5
|
|
—
|
|
4,526
|
Restructuring charges
(credits)
|
|
5,880
|
|
—
|
|
5,880
|
|
(453)
|
Acquisition-related
costs
|
|
—
|
|
3,338
|
|
(197)
|
|
11,456
|
Equity (income) loss
from unconsolidated investees
|
|
(1,185)
|
|
(158)
|
|
(1,743)
|
|
(158)
|
Mark-to-market (gain)
loss on interest rate swaps
|
|
(1,035)
|
|
(2,808)
|
|
(1,329)
|
|
(2,304)
|
Cash interest expense,
net of interest income
|
|
6,706
|
|
6,371
|
|
17,224
|
|
17,087
|
(Benefit from)
provision for income taxes
|
|
(202)
|
|
3,055
|
|
1,192
|
|
(5,425)
|
Depreciation
|
|
12,703
|
|
5,417
|
|
33,247
|
|
12,205
|
Adjusted
EBITDA2
|
|
$
(783)
|
|
$
25,326
|
|
$
(10,042)
|
|
$
37,003
|
|
1 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Results of operations of
businesses exited/to be exited" from our non-GAAP results, with the
exception of certain charges related to our legacy power plant and
development projects sold in fiscal 2018 and 2019. All comparative
periods have been adjusted to reflect the current
presentation.
|
2 Beginning
in the second quarter of fiscal 2023, we are no longer excluding
non-GAAP adjustments related to "Transition Costs" from our
non-GAAP results, and have adjusted all comparative periods to
reflect the current presentation.
|
FY 2023
GUIDANCE
|
|
|
FY
2023
|
Net Loss
(GAAP)
|
$(175) million - $(165)
million
|
Residential
Customers
|
70,000 -
80,000
|
Residential Adjusted
EBITDA/Customer1
|
$600 - $700
|
Adjusted
EBITDA2
|
$(35) million - $(25)
million
|
|
|
1.
|
Excluding Product &
Digital operating expenses for Residential only.
|
2.
|
Adjusted EBITDA
guidance for FY 2023 includes net adjustments that decrease GAAP
net loss by approximately $140 million primarily relating to the
following adjustments: stock-based compensation expense of $29
million, restructuring charges of $13 million, mark-to-market
(gain) loss on equity investments, net of $11 million, amortization
of intangible assets and software of $12 million, interest expense
of $23 million, depreciation of $46 million, income taxes of $1
million, and other non-recurring adjustments of $5
million.
|
The company reduced 2023 guidance for GAAP net loss to
($175) million to ($165) million.
Guidance for Adjusted EBITDA per customer before platform
investment was reduced to $600 -
$700 to reflect installation and
other costs spread over fewer customers than anticipated, delayed
revenue recognition from longer cycle times as well as higher
year-over-year installation cost, and cost of goods sold impacted
by inventory carried at cost higher than current
market.
The company increased guidance for Platform Investment to
$70 million - $90 million for the year, primarily to reflect
higher legacy business unit costs and the restatement of
prior-period inventory value.
Guidance for adjusted EBITDA for the year was reduced to
($35) million to ($25) million.
View original
content:https://www.prnewswire.com/news-releases/sunpower-reports-preliminary-third-quarter-2023-results-301973688.html
SOURCE SunPower Corp.