Solar
Power, Inc. (“SPI”) (OTCBB:SOPW),
a leading developer of photovoltaic (“PV”) solar energy facilities
(“SEF”), announced results for a record fourth quarter and year ended
December 31, 2011.
Fourth Quarter 2011 Results:
Total net sales for the fourth quarter of 2011 were $59.0 million, up
from $13.1 million for the fourth quarter of 2010 and up from $22.1
million for the third quarter of 2011.
Gross profit for the fourth quarter of 2011 was $8.7 million, compared
with $2.1 million for the fourth quarter of 2010 and with $1.4 million
for the third quarter of 2011.
Total operating expenses for fourth quarter 2011 were $3.0 million, or
5.0 percent of total net sales. This compared with total operating
expenses of $2.3 million, or 17.6 percent of total net sales, for the
fourth quarter of 2010 and with total operating expenses of $2.6
million, or 11.8 percent of total net sales, for the third quarter of
2011.
Net income for the fourth quarter of 2011 was $4.8 million, or $0.03 per
basic and diluted share. This compared with a net loss of $0.4 million,
or ($0.01) per basic and diluted share, for the fourth quarter of 2010
and with a net loss of $1.3 million, or ($0.01) per basic and diluted
share, for the prior quarter.
Year 2011 Results:
For the year ended December 31, 2011, total net sales were $103.1
million, compared with total net sales of $35.4 million for 2010. Gross
profit for 2011 was $12.8 million, compared with $5.3 million for 2010.
For 2011, the Company reported total operating expenses of $11.2
million, compared with total operating expenses of $12.2 million for
2010. The Company recorded a net loss of $0.5 million for 2011, or $0.00
per basic and diluted share, compared with a net loss of $9.4 million,
or ($0.18) per basic and diluted share for 2010.
Cash and cash equivalents at December 31, 2011 were $23.9 million,
compared with $1.4 million at December 31, 2010 and with $5.8 million at
September 30, 2011.
“We’re pleased with our record fourth quarter and year 2011 financial
results, which marked a year in which we completed SPI’s repositioning
as a SEF developer,” said Stephen Kircher, CEO of SPI. “This enables SPI
to pursue newer, more profitable projects, accelerating our access to
market growth opportunities, and favorably impacting our outlook for
total net sales for 2012.”
Recent Highlights:
-
Successfully shipped and recorded in fourth-quarter 2011 total net
sales is a previously announced $42 million order from KDC Solar LLC
for deployment of SEF projects in New Jersey -
Announced a second large-scale project in Evros, Greece to develop a 2
megawatt fixed-ground-mount SEF -
Selected to install a second solar system for Twentieth Century Fox
Film Corporation comprising an additional 230 kilowatts for a rooftop
PV solar system -
Awarded engineering, construction and procurement contract to build
11.3 megawatt utility-scale project for the state of New Jersey -
Secured $64 million in project financing, including $44 million from
China Development Bank to fund SEFs in New Jersey and $20 million from
LDK Solar, our parent company, for two projects in California
The company has filed a Form 8-K to report that it will file an amended
Form 10-K/A for the year 2010 and amended quarterly reports on Form
10-Q/A for the first three quarters of 2011 to restate prior year
financial statements due to a correction in accounting treatment for a
single SEF project (Aerojet 1) initiated in 2009.
The potential impact of the restatement on the 2011 financial statements
increases revenue by $1.8 million with a net loss of $35,000 and has no
impact on 2011 earnings per share or cash. The restatement also
increases total assets by $13.9 million and total liabilities of $14.6
million, with the difference being depreciation and interest expense.
2012 Business Outlook:
As noted in the Company’s news release issued February 22, 2012, SPI
continues to expect that 2012 net sales will approximately double its
2011 levels.
Teleconference and Webcast on March 28:
SPI will hold a teleconference to discuss its fourth quarter and year
end results today at 4:30 p.m. EDT on March 28, 2012. The call can be
accessed by dialing 1-877-941-1428 when calling within the United
States, or 1-480-629-9665 when calling internationally. A playback will
be available through April 2, 2012. To listen to the playback, call
1-877-870-5176 within the United States, or 1-858-384-5517
internationally, and use PIN number 4526873.
This call is also being webcast by ViaVid Broadcasting and can be
accessed by clicking on http://viavid.net/dce.aspx?sid=0000954D
or by visiting www.spisolar.com
or ViaVid’s website at www.viavid.net.
The webcast will be available through April 2, 2012.
About Solar Power, Inc.:
Solar Power, Inc. is a vertically integrated PV 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 PV
solar energy facilities to its business, government and utility
customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release contains certain “forward-looking statements” relating to
the business of Solar Power, Inc., its subsidiaries and the solar
industry, which can be identified by the use of forward-looking
terminology such as “believes”, “expects” or similar expressions. The
forward-looking statements contained in this press release include
statements regarding the Company’s ability to execute its growth plan
and meet revenue and sales estimates, enter into formal long-term supply
agreements, and market acceptance of products and services. In
particular, this release contains forward-looking statements regarding
the viability and potential profitability of projects to be reviewed and
pursued, and whether those projects will ultimately meet underwriting
criteria, or financial modeling sufficient for the Company to undertake
the projects. The commitments are to introduce and offer the projects,
and the Company cannot predict whether all projects will fit within its
financial model for execution, or upon terms that are acceptable to all
parties involved. These statements also 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.
SOLAR POWER, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
As of December 31,
2011
2010
ASSETS
Current assets:
Cash and cash equivalents
$
23,855
$
1,441
Accounts receivable, net of allowance for doubtful accounts of $611
and $28
59,621
5,988
Accounts receivable, related party
17,494
–
Note receivable
5,862
–
Costs and estimated earnings in excess of billings on uncompleted
contracts
8,885
2,225
Costs and estimated earnings in excess of billings on uncompleted
contracts,
related party
360
–
Inventories, net
6,878
4,087
Asset held for sale
6,269
6,669
Prepaid expenses and other current assets
1,339
702
Restricted cash
250
285
Total current assets
130,813
21,397
Goodwill
435
435
Restricted cash
420
1,059
Property, plant and equipment at cost, net
14,010
15,024
Total assets
$
145,678
$
37,915
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
7,736
$
6,055
Accounts payable, related party
46,125
–
Line of credit
6,000
–
Accrued liabilities
2,420
4,298
Income taxes payable
258
2
Billings in excess of costs and estimated earnings on uncompleted
contracts
955
1,767
Billings in excess of costs and estimated earnings on uncompleted
contracts,
related party
2,992
–
Loans payable and capital lease obligations
4,319
3,808
Total current liabilities
70,805
15,930
Loans payable and capital lease obligations, net of current portion
33,116
14,633
Other liabilities
1,479
–
Total liabilities
105,400
30,563
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
184,413,923 and 52,292,576 shares issued and outstanding
18
5
Additional paid in capital
75,336
42,114
Accumulated other comprehensive loss
(88
)
(240
)
Accumulated deficit
(34,988
)
(34,527
)
Total stockholders’ equity
40,278
7,352
Total liabilities and stockholders’ equity
$
145,678
$
37,915
SOLAR POWER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except for share data)
For the Three Months Ended December 31,
For the Years Ended December 31,
2011
2010
2011
2010
Net Sales
Net sales
$
58,550
$
13,077
$
90,169
$
35,353
Net sales, related party
490
–
12,903
–
Total sales
59,040
13,077
103,072
35,353
Cost of goods sold
Cost of goods sold
49,509
10,960
77,676
30,066
Cost of goods sold, related party
795
–
12,561
–
Total cost of goods sold
50,304
10,960
90,237
30,066
Gross profit
8,736
2,117
12,835
5,287
Operating expenses:
General and administrative
2,039
1,594
7,161
7,639
Sales, marketing and customer service
775
559
3,018
3,652
Engineering, design and product management
162
144
657
947
Impairment charge
–
–
400
–
Total operating expenses
2,976
2,297
11,236
12,238
Operating (loss) income
5,760
(180
)
1,599
(6,951
)
Other income (expense):
Interest expense
(309
)
(359
)
(1,517
)
(1,433
)
Interest income
114
(2
)
185
–
Other income, net
(501
)
22
(469
)
(1,138
)
Total other expense
(696
)
(339
)
(1,801
)
(2,571
)
Income (loss) before income taxes
5,064
(519
)
(202
)
(9,522
)
Income tax expense (benefit)
259
(144
)
259
(141
)
Net income (loss)
$
4,805
$
(375
)
$
(461
)
$
(9,381
)
Net income (loss) per common share
Basic and Diluted
$
0.03
$
(0.01
)
$
(0.00
)
$
(0.18
)
Weighted average number of common shares
used in computing per share amounts
Basic and Diluted
184,322,619
52,292,576
141,246,766
52,292,576