Q1 2024 Revenues of $479.5 million, up 19%
year-over-year
Nextracker (Nasdaq: NXT), one of the world’s leading providers
of intelligent solar tracker and software solutions, today
announced financial results for the first quarter ended June 30,
2023.
First Quarter Fiscal 2024 Financial Highlights:
- Revenue of $479.5 million, an increase of 19%
year-over-year
- GAAP net income of $63.6 million, $0.43 EPS
- Adjusted EBITDA of $83.7 million, an increase of 161%
year-over-year
- Adjusted net income of $70.9 million, $0.48 Adjusted non-GAAP
EPS
An explanation and reconciliation of non-GAAP financial measures
to GAAP financial measures is presented in Schedules IV and V
attached to this press release.
First Quarter Fiscal 2024 Business Highlights:
- Significant customer wins in Fiscal year 2023 Q1; new record
backlog over $3 billion
- Global manufacturing expansion progressing on plan
- Completed successful secondary public offering, increasing
Nextracker’s public float
“I am very pleased with our Q1 results against both operational
and financial metrics, as we continue serving global markets,” said
Dan Shugar, Nextracker Founder and CEO. “Solid execution combined
with sustained sales momentum produced our new record backlog of
over $3 billion, along with profitability that exceeded
pre-pandemic levels. From this foundation we are increasing our
FY24 guidance.
“As we maintain pricing discipline, our relentless focus on
innovation is allowing customers to increase their project
profitability. Solar’s growth prospects as the largest source of
new power generation continues to strengthen as a result of
technology progress, cost reduction, capacity expansion, and
favorable policies; Nextracker is well positioned to continue
leading the industry,” concluded Shugar.
Fiscal Year 2024 Outlook
- Revenue: $2.2 billion to $2.4 billion
- GAAP Net Income: $176 million to $205 million
- GAAP EPS: $1.20 to $1.40
- Adjusted EBITDA: $290 million to $340 million
- Adjusted non-GAAP EPS: $1.45 to $1.65 which excludes $0.25 for
stock-based compensation expense and net intangible
amortization
These statements are forward-looking and actual results may
differ materially as a result of many factors. Refer to the
Forward-Looking Statements section below for information on factors
that could cause Nextracker’s actual results to differ materially
from these forward-looking statements.
Conference Call
Nextracker will host a conference call at 1:30pm PT today to
discuss its financial results and outlook. The conference call will
be available via live webcast and replay at the Investor Relations
section of Nextracker’s website:
https://investors.nextracker.com/events-and-presentations/default.aspx
About Nextracker
Nextracker is a leading provider of intelligent, integrated
solar tracker and software solutions used in utility-scale and
ground-mounted distributed generation solar projects around the
world. Our products enable solar panels power plants to follow the
sun’s movement across the sky and optimize plant performance. With
power plants operating in more than 30 countries worldwide,
Nextracker offers solar tracker technologies that increase energy
production while reducing costs for significant plant ROI. For more
information, please visit Nextracker.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to the trends for future solar
adoption and Nextracker’s outlook for fiscal 2024 and other
periods. These forward-looking statements are based on various
assumptions and on the current expectations of Nextracker’s
management. These statements involve risks and uncertainties that
could cause the actual results to differ materially from those
anticipated by these forward-looking statements, including risks
and uncertainties that are described under “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in Nextracker’s most recent Annual Report on
Form 10-K and other documents that Nextracker has filed or will
file with the Securities and Exchange Commission. There may be
additional risks that Nextracker is not aware of or that Nextracker
currently believes are immaterial that could also cause actual
results to differ from the forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking
statements. Nextracker assumes no obligation to update these
forward-looking statements.
Schedule I
Nextracker Inc
Unaudited condensed consolidated
statements of operations and comprehensive income
(In thousands, except share and
per share data)
Three-months ended
June 30, 2023
July 1, 2022
Revenue
$
479,543
$
403,230
Cost of sales
365,799
$
353,367
Gross profit
113,744
49,863
Selling, general and administrative
expenses
34,235
16,117
Research and development
5,629
3,977
Operating income
73,880
29,769
Interest and other (income) expense,
net
1,134
(61
)
Income before income taxes
72,746
29,830
Provision for income taxes
9,101
5,700
Net income and comprehensive income
63,645
24,130
Less: Net income attributable to
Nextracker LLC prior to the reorganization transactions
—
24,130
Less: Net income attributable to
redeemable non-controlling interests
43,216
—
Net income attributable to Nextracker
Inc.
$
20,429
$
—
Earnings per share attributable to the
stockholders of Nextracker Inc. (1)
Basic
$
0.44
N/A
Diluted
$
0.43
N/A
Weighted-average shares used in computing
per share amounts:
Basic
46,411,859
N/A
Diluted
146,868,852
N/A
(1)
Basic and diluted earnings per share is
applicable only for the period following the initial public
offering (“IPO”) and the related Transactions.
Schedule II
Nextracker Inc
Unaudited condensed consolidated
balance sheets
(In thousands)
As of June 30, 2023
As of March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
355,081
$
130,008
Accounts receivable, net of allowance of
$1,621 and $1,768, respectively
222,750
271,159
Contract assets
320,124
297,960
Inventories
136,656
138,057
Other current assets
82,195
35,081
Total current assets
1,116,806
872,265
Property and equipment, net
6,914
7,255
Goodwill
265,153
265,153
Other intangible assets, net
1,258
1,321
Deferred tax assets and other assets
266,741
273,686
Total assets
$
1,656,872
$
1,419,680
LIABILITIES, REDEEMABLE INTERESTS AND
STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
293,451
211,355
Accrued expenses
57,280
59,770
Deferred revenue
251,040
176,473
Due to related parties
22,049
12,239
Other current liabilities
52,318
47,589
Total current liabilities
676,138
507,426
Long-term debt
147,289
147,147
TRA liability and other liabilities
276,298
280,246
Total liabilities
1,099,725
934,819
Redeemable non-controlling interest
3,909,522
3,560,628
Total stockholders' deficit
$
(3,352,375
)
$
(3,075,767
)
Total liabilities, redeemable interests,
and stockholders' deficit
$
1,656,872
$
1,419,680
Schedule III
Nextracker Inc
Unaudited condensed consolidated
statements of cash flows
(In thousands)
Three-months ended
June 30, 2023
July 1, 2022
Cash flows from operating activities:
Net income
$
63,645
$
24,130
Depreciation and amortization
1,046
1,269
Changes in working capital and other,
net
161,076
(22,605
)
Net cash provided by operating
activities
225,767
2,794
Cash flows from investing activities:
Purchases of property and equipment
(694
)
(427
)
Net cash used in investing activities
(694
)
(427
)
Cash flows from financing activities:
Net transfers to Parent
—
(309
)
Net cash used in financing activities
—
(309
)
Effect of exchange rate on cash and cash
equivalents
—
—
Net increase in cash
225,073
2,058
Cash and cash equivalents beginning of
period
130,008
29,070
Cash and cash equivalents end of
period
$
355,081
$
31,128
Three-months ended
Adjusted free cash flow
June 30, 2023
July 1, 2022
Net cash provided by operating
activities
$
225,767
$
2,794
Purchases of property and equipment
(694
)
(427
)
Adjusted free cash flow
$
225,073
$
2,367
Schedule IV
Nextracker Inc
Reconciliation of GAAP to
Non-GAAP Financial measures
(In thousands, except
percentages, shares and per share data)
Three-months ended
June 30, 2023
July 1, 2022
GAAP gross profit
$
113,744
49,863
Stock-based compensation expense
1,926
410
Intangible amortization
63
63
Non-GAAP gross profit
$
115,733
$
50,336
GAAP operating income
$
73,880
$
29,769
Stock-based compensation expense
8,460
1,005
Intangible amortization
63
541
Non-GAAP operating income
$
82,403
$
31,315
GAAP net income
$
63,645
$
24,130
Stock-based compensation expense
8,460
1,005
Intangible amortization
63
541
Adjustment for taxes
(1,225
)
(921
)
Non-GAAP net income
$
70,943
$
24,755
GAAP Net income
$
63,645
$
24,130
Interest, net
1,420
(64
)
Provision for income taxes
9,101
5,700
Depreciation expense
983
728
Intangible amortization
63
541
Stock-based compensation expense
8,460
1,005
Adjusted EBITDA
$
83,672
$
32,040
Net income (% of revenue)
13.3
%
6.0
%
Adjusted EBITDA (% of revenue)
17.4
%
7.9
%
Diluted earnings per share
GAAP
$
0.43
N/A
Non-GAAP
$
0.48
N/A
Diluted shares used in computing per share
amounts
146,868,852
N/A
See the accompanying notes on Schedule V
attached to this press release
Schedule V
Nextracker Inc Notes
(1) To supplement Nextracker’s unaudited selected financial data
presented consistent with U.S. Generally Accepted Accounting
Principles (“GAAP”), the Company discloses certain non-GAAP
financial measures that exclude certain charges and gains,
including Adjusted earnings before interest, taxes, depreciation,
and amortization (“EBITDA”), non-GAAP gross profit, non-GAAP
operating income, and non-GAAP net income. These supplemental
measures exclude certain legal and other charges, stock-based
compensation expense and intangible amortization, other discrete
events as applicable and the related tax effects. These non-GAAP
measures are not in accordance with or an alternative for GAAP and
may be different from non-GAAP measures used by other companies. We
believe that these non-GAAP measures have limitations in that they
do not reflect all the amounts associated with Nextracker’s results
of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate Nextracker’s results of
operations in conjunction with the corresponding GAAP measures. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the most directly
comparable GAAP measures. We compensate for the limitations of
non-GAAP financial measures by relying upon GAAP results to gain a
complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain
items to facilitate a review of the comparability of the Company’s
operating performance on a period-to-period basis because such
items are not, in our view, related to the Company’s ongoing
operational performance. We use non-GAAP measures to evaluate the
operating performance of our business, for comparison with
forecasts and strategic plans, for calculating return on
investment, and for benchmarking performance externally against
competitors. In addition, management’s incentive compensation is
determined using certain non-GAAP measures. Since we find these
measures to be useful, we believe that investors benefit from
seeing results “through the eyes” of management in addition to
seeing GAAP results. We believe that these non-GAAP measures, when
read in conjunction with the Company’s GAAP financials, provide
useful information to investors by offering:
- the ability to make more meaningful period-to-period
comparisons of the Company’s ongoing operating results;
- the ability to better identify trends in the Company’s
underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the
Company’s underlying business; and
- an easier way to compare the Company’s operating results
against analyst financial models and operating results of
competitors that supplement their GAAP results with non-GAAP
financial measures.
The following are explanations of each of the adjustments that
we incorporate into non-GAAP measures, as well as the reasons for
excluding each of these individual items in the reconciliations of
these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges
for the estimated fair value of unvested restricted share unit and
stock option awards granted to employees and assumed in business
acquisitions. The Company believes that the exclusion of these
charges provides for more accurate comparisons of its operating
results to peer companies due to the varying available valuation
methodologies, subjective assumptions, and the variety of award
types. In addition, the Company believes it is useful to investors
to understand the specific impact stock-based compensation expense
has on its operating results.
During fiscal year 2023, the Company granted equity compensation
awards to employees under the First Amended and Restated 2022
Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”),
Vesting of awards under the Plan was contingent on a Nextracker
Initial Public Offering (IPO) which occurred on February 9, 2023.
In addition to the 2022 Nextracker Plan, Flex maintains several
stock-based incentive plans for the benefit of certain of its
officers, directors, and employees, including the employees of
Nextracker. Stock-based compensation expense for the three-month
periods also include expense recognized under the Flex plan.
Intangible amortization consists primarily of non-cash charges
that can be impacted by, among other things, the timing and
magnitude of acquisitions. The Company considers its operating
results without these charges when evaluating its ongoing
performance and forecasting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial measures.
The Company believes that the assessment of its operations
excluding these costs is relevant to its assessment of internal
operations and comparisons to the performance of its
competitors.
Adjustment for taxes relates to the tax effects of the various
adjustments that we incorporate into non-GAAP measures to provide a
more meaningful measure on non-GAAP net income and certain
adjustments related to non-recurring settlements of tax
contingencies or other non-recurring tax charges, when
applicable.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230726911147/en/
Investors & Analysts Don Quinby Director, Finance
Investor@nextracker.com
Media & Press Kristan Kirsh Vice President, Global Marketing
KKirsh@nextracker.com
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