SunPower Corp. (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced financial results for the second quarter, ending July 3, 2022.
"There is a ubiquitous need for reliable electricity at an affordable price that isn't being met with our traditional energy sources," said Peter Faricy, SunPower CEO. "With our strategic growth plan, investment in world-class customer experience and robust pipeline, SunPower is well positioned to capture the strong resulting demand for solar and storage. This quarter we added a record number of customers, including an all-time high for new homes installs, and accumulated a backlog that we expect to set us up for high growth in the second half of the year."
SECOND QUARTER BUSINESS HIGHLIGHTS
SunPower continues to execute across its five strategic pillars to capture demand and cement its leadership position as the company delivering the most innovative ecosystem of home energy products with unmatched customer experience.
World-class customer experience | |
1. | Highest rated solar company: In the second quarter of 2022, SunPower remained the only 4+ star rated solar provider in the U.S. with an average review score of 4.3. SunPower's Net Promoter Score improved to 51, a 38% improvement year-over-year (YoY). |
2. | Improved time to resolution: The company continued its trend of significantly improving customer response speed. In the last quarter, it minimized wait times to 31 seconds, a 45% improvement YoY, and shortened the average time it takes to resolve a customer query by 36% YoY. |
Best, most affordable products | |
3. | Significant progress on ground-breaking panel: SunPower and First Solar (NASDAQ: FSLR) are finalizing negotiations to develop the world's most-advanced residential solar panels. The companies have agreed on the majority of key terms and are working toward definitive agreements. They are expected to sign a deal in the next quarter and promptly move forward to operationalize production. |
4. | Increasing panel supply: SunPower secured additional product volume under their agreement with Maxeon Solar Technologies (NASDAQ: MAXN) for increased panel supply through the end of the year. Along with additional supply chain agreements, this further ensures the company's ability to meet unprecedented demand. |
Growth | |
5. | Joining forces with IKEA U.S.: In May, SunPower announced a new strategic relationship with IKEA U.S. to introduce solar and storage to a new consumer market and make renewable energy easier to access. Through the collaboration, SunPower home energy products will be featured in select IKEA stores, and members of IKEA's customer loyalty program will be able to initiate their solar journey from the showroom floor. Home Solar with IKEA is expected to launch in select California markets in Fall 2022. |
6. | Driving growth in new homes: SunPower continues to stand out as an industry leader in new homes. It recorded a 46% increase YoY for contracted active solar-standard communities, with previously sold backlog growing to 34,0001 customers. This quarter, the company further expanded its category presence across the country: it solidified a multiyear national contract extension with KB Home (NYSE: KBH) and finalized a deal with Dream Finders Homes (NASDAQ: DFH) to build nearly 400 solar-standard homes across five communities in Colorado. |
Digital innovation | |
7. | Completed significant monitoring upgrade: SunPower finalized a multiyear project to redesign its monitoring systems for a superior customer experience. The new system enables faster load times and activates features such as panel-level monitoring and alerts for customers and dealers. With the implementation, SunPower reduced maximum delay time between when panels measure power production and when that data is visible in the mySunPower app from one hour to less than two minutes. The new monitoring system is expected to save SunPower more than $4 million in annual operating costs by gaining efficiency and reducing third party vendor fees. |
World-class financial solutions | |
8. | Grew financing product portfolio: SunPower Financial introduced several new offerings in the second quarter to help keep customers' monthly payments low, including low-APR loans and expanded eligibility up to $150,000. |
1Backlog calculated as of July 22, 2022. |
In June, SunPower closed the sale of its Commercial & Industrial Solutions (CIS) business to TotalEnergies. Additionally in the second quarter, TotalEnergies and Global Infrastructure Partners (GIP) signed a deal where GIP is expected to acquire an approximate 50% interest in a new joint venture that will hold TotalEnergies' 51% ownership in SunPower Corporation.
"This agreement is a strong signal from energy leaders and investors that accelerating the energy transition is an imperative and a powerful vote of confidence that SunPower is well suited to play a leading role in that change," said Faricy.
Financial Highlights
($ Millions, except percentages, residential | 2nd Quarter 2022 | 1st Quarter 2022 | 2nd Quarter 2021 |
GAAP revenue from continuing operations | $417.8 | $350.3 | $260.8 |
GAAP gross margin from continuing operations | 19.5 % | 20.6 % | 23.3 % |
GAAP net income (loss) from continuing operations | $(42.5) | $(2.2) | $87.1 |
GAAP net income (loss) from continuing operations | $(0.24) | $(0.01) | $0.46 |
Non-GAAP revenue from continuing operations1 | $414.1 | $336.1 | $254.1 |
Non-GAAP gross margin from continuing operations1 | 21.3 % | 21.7 % | 22.5 % |
Non-GAAP net income (loss) from continuing operations1 | $5.2 | $2.9 | $12.1 |
Non-GAAP net income (loss) from continuing | $0.03 | $0.02 | $0.07 |
Adjusted EBITDA1 | $15.2 | $11.2 | $22.4 |
Residential customers | 463,600 | 443,800 | 363,000 |
Cash2 | $206.4 | $142.3 | $209.8 |
The sale of our C&I Solutions business met the criteria for classification as "discontinued operations" in accordance with the guidance in ASC 205-20, Discontinued Operations, beginning the first quarter of fiscal 2022. For all periods presented, the financial results of C&I Solutions are excluded in the table above. |
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 |
2022 Financial Outlook
SunPower affirmed prior 2022 guidance of $2,000-$2,400 Adjusted EBITDA per customer and 73,000-80,000 incremental customers, resulting in $90-$110 million Adjusted EBITDA for the year.
Earnings Conference Call Information
SunPower will discuss its second quarter, 2022 financial results on Tuesday, August 2 at 8:30 a.m. Eastern Time. The conference call can be accessed live by registering at https://register.vevent.com/register/BI8045a492c8dd47d6be8faf25537fcfbd. 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 solar technology 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. 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 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; (b) our plans and expectations with respect to our strategic partnerships and initiatives, including our proposed partnership with First Solar, our strategic relationship with IKEA, and our agreements with KB Home and Dream Finders Homes, and the anticipated business and financial impacts thereof; (c) our strategic plans and areas of investment and focus, both current and future, and expectations for the results thereof, including improved customer experience, increased installation capacity, development of new products and services, and cost savings; (d) our expectations regarding projected demand and growth in 2022 and beyond, our positioning for future success, and our ability to capture demand and deliver long-term value to our shareholders; (e) our expectations for industry trends and factors, and the impact thereof on our business and strategic plans; and (f) our guidance for fiscal year 2022, including Adjusted EBITDA per customer, incremental customers, and Adjusted EBITDA, 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, supply chain constraints, interest rates, and pricing pressures; (4) changes in public policy, including the imposition and applicability of tariffs; (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; 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 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
(Unaudited) | |||
July 3, 2022 | January 3, 2021 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 206,355 | $ 123,735 | |
Restricted cash and cash equivalents, current portion | 1,024 | 691 | |
Short-term investments | 293,580 | 365,880 | |
Accounts receivable, net | 149,166 | 121,268 | |
Contract assets | 30,358 | 25,994 | |
Inventories | 222,524 | 214,432 | |
Advances to suppliers, current portion | 2,216 | 462 | |
Prepaid expenses and other current assets | 166,364 | 100,212 | |
Current assets of discontinued operations | — | 120,792 | |
Total current assets | 1,071,587 | 1,073,466 | |
Restricted cash and cash equivalents, net of current portion | 21,270 | 14,887 | |
Property, plant and equipment, net | 50,675 | 33,560 | |
Operating lease right-of-use assets | 28,809 | 31,654 | |
Solar power systems leased, net | 43,510 | 45,502 | |
Goodwill | 126,338 | 126,338 | |
Other intangible assets, net | 24,401 | 24,879 | |
Other long-term assets | 169,882 | 156,994 | |
Long-term assets of discontinued operations | — | 47,526 | |
Total assets | $ 1,536,472 | $ 1,554,806 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 148,147 | $ 138,514 | |
Accrued liabilities | 155,273 | 101,980 | |
Operating lease liabilities, current portion | 10,506 | 10,753 | |
Contract liabilities, current portion | 102,778 | 62,285 | |
Short-term debt | 62,089 | 109,568 | |
Convertible debt, current portion | 424,298 | — | |
Current liabilities of discontinued operations | — | 86,496 | |
Total current liabilities | 903,091 | 509,596 | |
Long-term debt | 54,130 | 380 | |
Convertible debt, net of current portion | — | 423,677 | |
Operating lease liabilities, net of current portion | 23,544 | 28,566 | |
Contract liabilities, net of current portion | 18,674 | 18,705 | |
Other long-term liabilities | 117,942 | 141,197 | |
Long-term liabilities of discontinued operations | — | 42,661 | |
Total liabilities | 1,117,381 | 1,164,782 | |
Equity: | |||
Common stock | 174 | 173 | |
Additional paid-in capital | 2,840,028 | 2,714,500 | |
Accumulated deficit | (2,213,195) | (2,122,212) | |
Accumulated other comprehensive income | 11,139 | 11,168 | |
Treasury stock, at cost | (224,829) | (215,240) | |
Total stockholders' equity | 413,317 | 388,389 | |
Noncontrolling interests in subsidiaries | 5,774 | 1,635 | |
Total equity | 419,091 | 390,024 | |
Total liabilities and equity | $ 1,536,472 | $ 1,554,806 | |
SUNPOWER CORPORATION | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
Total revenues | $ 417,772 | $ 350,277 | $ 260,751 | $ 768,049 | $ 500,887 | |||||
Total cost of revenues | 336,273 | 277,968 | 200,040 | 614,241 | 394,210 | |||||
Gross profit | 81,499 | 72,309 | 60,711 | 153,808 | 106,677 | |||||
Operating expenses: | ||||||||||
Research and development | 7,405 | 5,010 | 4,258 | 12,415 | 8,882 | |||||
Sales, general, and administrative | 93,043 | 76,996 | 49,478 | 170,039 | 91,745 | |||||
Restructuring (credits) charges | (494) | 627 | 808 | 133 | 4,574 | |||||
(Gain) loss on sale and impairment of | — | — | (68) | — | (294) | |||||
(Income) expense from transition | (494) | 266 | (1,656) | (228) | (4,743) | |||||
Total operating expenses | 99,460 | 82,899 | 47,530 | 182,359 | 94,874 | |||||
Operating (loss) income | (17,961) | (10,590) | 13,181 | (28,551) | 11,803 | |||||
Other (expense) income, net: | ||||||||||
Interest income | 92 | 42 | 73 | 134 | 125 | |||||
Interest expense | (5,964) | (5,044) | (6,630) | (11,008) | (13,657) | |||||
Other, net | (14,652) | 1,444 | 84,075 | (13,208) | 39,560 | |||||
Other (expense) income, net | (20,524) | (3,558) | 77,518 | (24,082) | 26,028 | |||||
(Loss) income from continuing operations | (38,485) | (14,148) | 90,699 | (52,633) | 37,831 | |||||
(Provision for) benefits from income | (3,226) | 11,643 | (3,594) | 8,417 | 1,532 | |||||
Net (loss) income from continuing | (41,711) | (2,505) | 87,105 | (44,216) | 39,363 | |||||
(Loss) income from discontinued | (20,857) | (26,298) | (13,505) | (47,155) | (15,359) | |||||
Benefits from (provision for) income | 241 | 343 | 1,169 | 584 | 1,267 | |||||
Net (loss) income from discontinued | (20,616) | (25,955) | (12,336) | (46,571) | (14,092) | |||||
Net (loss) income | (62,327) | (28,460) | 74,769 | (90,787) | 25,271 | |||||
Net (income) loss from continuing | (785) | 339 | (11) | (446) | 584 | |||||
Net (income) loss from discontinued | — | 250 | 449 | 250 | 967 | |||||
Net (income) loss attributable to | (785) | 589 | 438 | (196) | 1,551 | |||||
Net (loss) income from continuing | (42,496) | (2,166) | 87,094 | (44,662) | 39,947 | |||||
Net (loss) income from discontinued | (20,616) | (25,705) | (11,887) | (46,321) | (13,125) | |||||
Net (loss) income attributable to | $ (63,112) | $ (27,871) | $ 75,207 | $ (90,983) | $ 26,822 | |||||
Net (loss) income per share attributable to | ||||||||||
Continuing operations | $ (0.24) | $ (0.01) | $ 0.50 | $ (0.26) | $ 0.23 | |||||
Discontinued operations | $ (0.12) | $ (0.15) | $ (0.07) | $ (0.27) | $ (0.08) | |||||
Net (loss) income per share – basic | $ (0.36) | $ (0.16) | $ 0.43 | $ (0.53) | $ 0.15 | |||||
Net (loss) income per share attributable to | ||||||||||
Continuing operations | $ (0.24) | $ (0.01) | $ 0.46 | $ (0.26) | $ 0.23 | |||||
Discontinued operations | $ (0.12) | $ (0.15) | $ (0.07) | $ (0.27) | $ (0.08) | |||||
Net (loss) income per share – diluted | $ (0.36) | $ (0.16) | $ 0.39 | $ (0.53) | $ 0.15 | |||||
Weighted-average shares: | ||||||||||
Basic | 173,951 | 173,376 | 172,640 | 173,664 | 171,920 | |||||
Diluted | 173,951 | 173,376 | 194,363 | 173,664 | 176,794 | |||||
SUNPOWER CORPORATION | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
Cash flows from operating activities: | ||||||||||
Net (loss) income | $ (62,327) | $ (28,460) | $ 74,769 | $ (90,787) | $ 25,271 | |||||
Adjustments to reconcile net (loss) income | ||||||||||
Depreciation and amortization | 12,383 | 4,665 | 2,968 | 17,048 | 5,817 | |||||
Stock-based compensation | 7,072 | 5,427 | 9,613 | 12,499 | 15,050 | |||||
Non-cash interest expense | 833 | 726 | 1,650 | 1,559 | 3,155 | |||||
Loss (gain) on equity investments | 15,255 | (1,315) | (83,746) | 13,940 | (39,016) | |||||
(Gain) loss on sale of investments | — | — | — | — | (1,162) | |||||
(Gain) loss on business divestitures, | — | — | (224) | — | (224) | |||||
Deferred income taxes | 2,554 | (13,750) | 2,264 | (11,196) | (1,637) | |||||
Other, net | 104 | 845 | (935) | 949 | (6,215) | |||||
Changes in operating assets and | ||||||||||
Accounts receivable | (25,585) | (12,354) | (7,023) | (37,939) | (2,909) | |||||
Contract assets | 13,852 | (6,519) | 24,011 | 7,333 | 24,498 | |||||
Inventories | 18,022 | (35,081) | 10,096 | (17,059) | 1,825 | |||||
Project assets | (2,597) | 2,892 | (2,892) | 295 | 6,305 | |||||
Prepaid expenses and other assets | (83,296) | (86,502) | 702 | (169,798) | 5,180 | |||||
Operating lease right-of-use assets | 3,017 | 2,415 | 3,490 | 5,432 | 6,365 | |||||
Advances to suppliers | 150 | (2,222) | 568 | (2,072) | (3,284) | |||||
Accounts payable and other | 5,074 | 41,444 | (18,077) | 46,518 | (42,229) | |||||
Contract liabilities | 44,207 | 22,066 | 4,907 | 66,273 | (8,554) | |||||
Operating lease liabilities | (4,545) | (3,027) | (3,160) | (7,572) | (6,589) | |||||
Net cash (used in) provided | (55,827) | (108,750) | 18,981 | (164,577) | (18,353) | |||||
Cash flows from investing activities: | ||||||||||
Purchases of property, plant and | (12,947) | (8,636) | (1,881) | (21,583) | (6,894) | |||||
Investments in software development | (1,204) | (1,521) | — | (2,725) | — | |||||
Proceeds from sale of property, plant | — | — | 900 | — | 900 | |||||
Cash paid for solar power systems | — | — | — | — | (635) | |||||
Cash received from sale of | — | — | — | — | 1,200 | |||||
Proceeds from business divestitures, | — | — | 10,516 | — | 10,516 | |||||
Cash received from C&I Solutions | 146,303 | — | — | 146,303 | — | |||||
Cash paid for equity investments | (9,420) | (7,000) | — | (16,420) | — | |||||
Proceeds from sale of equity | — | 149,830 | — | 149,830 | — | |||||
Proceeds from return of capital from | — | — | 2,276 | — | 2,276 | |||||
Cash paid for investments in | (3,164) | (154) | — | (3,318) | — | |||||
Net cash provided by (used in) | 119,568 | 132,519 | 11,811 | 252,087 | 7,363 | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from bank loans and other | 78,818 | 21,458 | 24,073 | 100,276 | 95,396 | |||||
Repayment of bank loans and other | (74,100) | (23,944) | (68,497) | (98,044) | (103,573) | |||||
Repayment of non-recourse | — | — | (85) | — | (9,798) | |||||
Repayment of convertible debt | — | — | (62,757) | — | (62,757) | |||||
Payments for financing leases | (118) | — | — | (118) | — | |||||
Issuance of common stock to | — | — | 2,998 | — | 2,998 | |||||
Purchases of stock for tax withholding | (2,256) | (7,332) | (4,335) | (9,588) | (6,453) | |||||
Net cash (used in) provided | 2,344 | (9,818) | (108,603) | (7,474) | (84,187) | |||||
Net increase (decrease) in cash, cash | 66,085 | 13,951 | (77,810) | 80,036 | (95,177) | |||||
Cash, cash equivalents and restricted cash, | 162,564 | 148,613 | 229,437 | 148,613 | 246,804 | |||||
Cash, cash equivalents, and restricted | $ 228,649 | $ 162,564 | $ 151,627 | $ 228,649 | $ 151,627 | |||||
Reconciliation of cash, cash equivalents, | ||||||||||
Cash and cash equivalents | $ 206,355 | $ 142,250 | $ 140,462 | $ 206,355 | $ 140,462 | |||||
Restricted cash and cash equivalents, | 1,024 | 681 | 5,818 | 1,024 | 5,818 | |||||
Restricted cash and cash equivalents, | 21,270 | 12,857 | 5,347 | 21,270 | 5,347 | |||||
Cash, cash equivalents, and restricted | — | 6,776 | — | — | — | |||||
Total cash, cash | $ 228,649 | $ 162,564 | $ 151,627 | $ 228,649 | $ 151,627 | |||||
Supplemental disclosure of cash flow | ||||||||||
Property, plant and equipment | $ 3,713 | $ 922 | $ (473) | $ 4,635 | $ 1,174 | |||||
Right-of-use assets obtained in | 649 | 877 | — | 1,526 | 11,528 | |||||
Working capital adjustment related to | 6,265 | — | — | 6,265 | — | |||||
Accrued legal expenditures on equity | 163 | — | — | 163 | — | |||||
Deconsolidation of right-of-use assets | — | — | 3,340 | — | 3,340 | |||||
Debt repaid in sale of commercial | — | — | 5,585 | — | 5,585 | |||||
Cash paid for interest | 1,312 | 9,874 | 2,090 | 11,186 | 13,527 | |||||
Cash paid for income taxes | 2,250 | 250 | 20,194 | 2,500 | 20,233 | |||||
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 revenue includes adjustments relating to results of operations of legacy business exited/to be exited. 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.
Other Non-GAAP Adjustments
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 | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
GAAP revenue | $ 417,772 | 350,277 | $ 260,751 | $ 768,049 | $ 500,886 | |||||
Other adjustments: | ||||||||||
Results of operations of businesses | (3,674) | (14,208) | (6,631) | (17,882) | (8,829) | |||||
Non-GAAP revenue | $ 414,098 | 336,069 | $ 254,120 | $ 750,167 | $ 492,057 | |||||
Adjustments to Gross Profit Margin: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
GAAP gross profit from continuing operations | $ 81,499 | $ 72,309 | $ 60,710 | $ 153,808 | $ 106,676 | |||||
Other adjustments: | ||||||||||
Results of operations of businesses | 5,348 | (260) | (3,608) | 5,088 | 3,303 | |||||
Executive transition costs | 85 | 378 | — | 463 | — | |||||
(Gain) loss on sale and impairment of | (278) | (279) | (519) | (557) | (1,013) | |||||
Stock-based compensation expense | 1,398 | 899 | 627 | 2,297 | 1,164 | |||||
Business reorganization costs | 11 | — | — | 11 | — | |||||
Transaction-related costs | 56 | — | — | 56 | — | |||||
Non-GAAP gross profit | $ 88,119 | $ 73,047 | $ 57,210 | $ 161,166 | $ 110,130 | |||||
GAAP gross margin (%) | 19.5 % | 20.6 % | 23.3 % | 20.0 % | 21.3 % | |||||
Non-GAAP gross margin (%) | 21.3 % | 21.7 % | 22.5 % | 21.5 % | 22.4 % | |||||
Adjustments to Net Income (Loss): | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
GAAP net (loss) income from continuing | $ (42,496) | $ (2,166) | $ 87,094 | $ (44,662) | $ 39,947 | |||||
Adjustments based on IFRS: | ||||||||||
Mark-to-market loss (gain) on equity | 15,255 | (1,315) | (83,746) | 13,940 | (39,016) | |||||
Other adjustments: | ||||||||||
Results of operations of businesses | 7,503 | 2,933 | (3,116) | 10,436 | 8,084 | |||||
(Gain) loss on sale and impairment of | (278) | (279) | (587) | (557) | (5,970) | |||||
Litigation | 3,166 | 177 | 3,447 | 3,343 | 8,580 | |||||
Stock-based compensation expense | 7,054 | 5,329 | 9,188 | 12,383 | 13,542 | |||||
Amortization of intangible assets and | 2,786 | 1,978 | — | 4,764 | — | |||||
(Gain) loss on business divestitures, net | — | — | (5,290) | — | (5,290) | |||||
Transaction-related costs | 259 | 964 | (82) | 1,223 | 118 | |||||
Executive transition costs | 3,685 | 1,469 | 502 | 5,154 | 502 | |||||
Business reorganization costs | 4,521 | — | 901 | 4,521 | 1,855 | |||||
Restructuring (credits) charges | (639) | 186 | 871 | (453) | 766 | |||||
Acquisition-related costs | 2,310 | 5,808 | — | 8,118 | — | |||||
Tax effect | 2,025 | (12,186) | 2,911 | (10,161) | (830) | |||||
Non-GAAP net income (loss) attributable | $ 5,151 | $ 2,898 | $ 12,093 | $ 8,049 | $ 22,288 | |||||
Adjustments to Net Income (loss) per diluted share: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
Net income (loss) per diluted share | ||||||||||
Numerator: | ||||||||||
GAAP net (loss) income available | $ (42,496) | $ (2,166) | $ 87,094 | $ (44,662) | $ 39,947 | |||||
Add: Interest expense on 4.00% | — | — | 3,126 | — | — | |||||
Add: Interest expense on 0.875% | — | — | 67 | — | 168 | |||||
GAAP net income (loss) available | $ (42,496) | $ (2,166) | $ 90,287 | $ (44,662) | $ 40,115 | |||||
Non-GAAP net income (loss) | $ 5,151 | $ 2,898 | $ 12,093 | $ 8,049 | $ 22,288 | |||||
Denominator: | ||||||||||
GAAP weighted-average shares | 173,951 | 173,376 | 172,640 | 173,664 | 171,920 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | — | — | 3,084 | — | 3,299 | |||||
0.875% debentures due 2021 | — | — | 1,571 | — | 1,575 | |||||
4.00% debentures due 2023 | — | — | 17,068 | — | — | |||||
GAAP dilutive weighted-average | 173,951 | 173,376 | 194,363 | 173,664 | 176,794 | |||||
Non-GAAP weighted-average | 173,951 | 173,376 | 172,640 | 173,664 | 171,920 | |||||
Effect of dilutive securities: | ||||||||||
Restricted stock units | 770 | 1,399 | 3,084 | 790 | 3,299 | |||||
Non-GAAP dilutive weighted- | 174,721 | 174,775 | 175,724 | 174,454 | 175,219 | |||||
GAAP dilutive net (loss) income per | $ (0.24) | $ (0.01) | $ 0.46 | $ (0.26) | $ 0.23 | |||||
Non-GAAP dilutive net income (loss) | $ 0.03 | $ 0.02 | $ 0.07 | $ 0.05 | $ 0.13 | |||||
1In accordance with the if-converted method, net (loss) income 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) 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. |
Adjusted EBITDA: | ||||||||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||
July 3, 2022 | April 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||
GAAP net (loss) income from continuing | $ (42,496) | $ (2,166) | $ 87,094 | $ (44,662) | $ 39,947 | |||||
Adjustments based on IFRS: | ||||||||||
Mark-to-market loss (gain) on equity | 15,255 | (1,315) | (83,746) | 13,940 | (39,016) | |||||
Other adjustments: | ||||||||||
Results of operations of businesses | 7,503 | 2,933 | (3,116) | 10,436 | 8,084 | |||||
(Gain) loss on sale and impairment of | (278) | (279) | (587) | (557) | (5,970) | |||||
Litigation | 3,166 | 177 | 3,447 | 3,343 | 8,580 | |||||
Stock-based compensation expense | 7,054 | 5,329 | 9,188 | 12,383 | 13,542 | |||||
Amortization of intangible assets and | 2,786 | 1,978 | — | 4,764 | — | |||||
(Gain) loss on business divestitures, | — | — | (5,290) | — | (5,290) | |||||
Transaction-related costs | 259 | 964 | (82) | 1,223 | 118 | |||||
Executive transition costs | 3,685 | 1,469 | 502 | 5,154 | 502 | |||||
Business reorganization costs | 4,521 | — | 901 | 4,521 | 1,855 | |||||
Restructuring (credits) charges | (639) | 186 | 871 | (453) | 766 | |||||
Acquisition-related costs | 2,310 | 5,808 | — | 8,118 | — | |||||
Cash interest expense, net of interest | 5,829 | 4,878 | 6,498 | 10,707 | 13,449 | |||||
Provision for (benefit from) income | 2,720 | (11,676) | 3,560 | (8,956) | (1,564) | |||||
Depreciation | 3,571 | 2,873 | 3,198 | 6,444 | 6,227 | |||||
Adjusted EBITDA | $ 15,246 | $ 11,159 | $ 22,438 | $ 26,405 | $ 41,230 | |||||
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 (Loss) Income (GAAP) | $(15) million -$(35) million |
| Last Trade: | US$0.12 |
| Daily Volume: | 0 |
| Market Cap: | US$21.550M |
May 22, 2024 February 20, 2024 February 15, 2024 November 14, 2023 November 01, 2023 | |
