Canadian Solar Reports Fourth Quarter and Full Year 2017 Results

Publicado el 20 mar. 2018
CSI Solar 
Canadian Solar Inc. announced its financial results for the fourth quarter and full year ended December 31, 2017. 

Fourth Quarter 2017 and Related Highlights

- Total solar module shipments were 1,831 MW, compared to 1,870 MW in the third quarter of 2017, and fourth quarter guidance in the range of 1,720 MW to 1,820 MW.

- Net revenue was $1.11 billion, compared to $912.2 million in the third quarter of 2017, and fourth quarter 2017 guidance in the range of $1.04 billion to $1.08 billion.

- Net revenue from the total solutions business as a percentage of total net revenue was 36.4% compared to 21.6% in the third quarter of 2017.

- Gross margin was 19.7%, compared to 17.5% in the third quarter of 2017, and fourth quarter guidance in the range of 16.5% to 18.5%.

- Net income attributable to Canadian Solar was $61.4 million, or $1.01 per diluted share, compared to net income of $13.3 million, or $0.22 per diluted share, in the third quarter of 2017.

- Cash, cash equivalents and restricted cash balances at the end of the quarter totaled $1.19 billion, compared to $1.15 billion at the end of the third quarter of 2017.

- Net cash provided by operating activities was approximately $189.3 million, compared to net cash provided by operating activities of $153.8 million in the third quarter of 2017.

- During the quarter, the Company completed the sale of 13 solar power plants totaling 72.7 MWp in Japan to Canadian Solar Infrastructure Fund, Inc. ("CSIF") for approximately $270 million; completed the sale of 99 percent of its Class B membership interest in the 92 MWp IS-42 solar power plant in the U.S. for approximately $43 million; completed the sale of 44.3 MWp of solar power plants in China; and completed the sale of interests in three solar power projects totaling 117 MWp in Australia.

- The Company's portfolio of solar power plants in operation was approximately 1.2 GWp as of February 28, 2018.

Full Year 2017 Results

- Total solar module shipments were a record high of 6,828 MW in 2017, compared to 5,232 MW in 2016, and full year 2017 guidance in the range of 6.8 GW to 6.9 GW.

- Net revenue was $3.39 billion, compared to $2.85 billion in 2016, and full year 2017 guidance in the range of $3.33 billion to $3.37 billion.

- Net revenue from the total solutions business was 22.8% of total net revenue, compared to 8.1% in 2016.

- Net income attributable to Canadian Solar was $99.6 million, or $1.69 per diluted share, compared to $65.2 million, or $1.12 per diluted share, in 2016.

- Net cash provided by operating activities was approximately $203.9 million, compared to net cash used in operating activities of $278.1 million in 2016.

Fourth Quarter 2017 Results

Net revenue in the fourth quarter of 2017 was $1.11 billion, up 21.5% from $912.2 million in the third quarter of 2017 and up 65.9% from $668.4 million in the fourth quarter of 2016. Solar module shipments were 1,831 MW, compared to 1,870 MW in the third quarter of 2017, and fourth quarter guidance in the range of 1,720 MW to 1,820 MW.

Gross profit in the fourth quarter of 2017 was $218.6 million, compared $159.8 million in the third quarter of 2017 and $49.0 million in the fourth quarter of 2016. Gross margin in the fourth quarter of 2017 was 19.7%, compared to 17.5% in the third quarter of 2017 and 7.3% in the fourth quarter of 2016. The sequential increase in gross margin was primarily due to the high profit margin from the sales of Japanese projects to CSIF. The year-over-year increase in gross margin was primarily due to lower module blended manufacturing cost, lower anti-dumping and countervailing duty ("AD/CVD") charges, higher contributions from the Company's higher margin total solutions business, partially offset by decreased module average selling price.

Total operating expenses in the fourth quarter of 2017 were $88.4 million, down 13.4% from $102.0 million in the third quarter of 2017 and up 45.6% from $60.7 million in the fourth quarter of 2016.

Selling expenses in the fourth quarter of 2017 were $39.9 million, down 6.8% from $42.8 million in the third quarter of 2017 and down 6.6% from $42.7 million in the fourth quarter of 2016. The sequential decrease of $2.9 million was primarily due to a decrease in external sales commission and marketing expenses, partially offset by an increase in labor cost. The year-over-year decrease in selling expenses was primarily due to a decrease in marketing expenses and various professional services expenses, partially offset by an increase in labor cost and higher shipping and handling costs.

General and administrative expenses in the fourth quarter of 2017 were $69.7 million, up 30.6% from $53.3 million in the third quarter of 2017 and up 10.8% from $62.8 million in the fourth quarter of 2016. The sequential increase in general and administrative expenses was primarily due to a $10.2 million asset impairment charge relating to, among other things, certain idle manufacturing equipment, increased labor cost and higher withholding tax expense. The year-over-year increase in general and administrative expenses was primarily due to an increase in labor cost and higher withholding tax expense.

Research and development expenses in the fourth quarter of 2017 were $8.6 million, compared to $7.3 million in the third quarter of 2017 and $3.2 million in the fourth quarter of 2016, as the Company further strengthens its leadership position by strategically investing in solar technology advancements and efficiencies.

Other operating income in the fourth quarter of 2017 was $29.8 million, compared to $1.4 million in the third quarter of 2017 and $48.1 million in the fourth quarter of 2016. Other operating income in the fourth quarter of 2017 reflects a net gain from the sale of certain solar power projects to CSIF in Japan.

Income from operations in the fourth quarter of 2017 was $130.2 million, compared to $57.8 million in the third quarter of 2017, and a loss from operations of $11.8 million in the fourth quarter of 2016. Operating margin was 11.7% in the fourth quarter of 2017, compared to 6.3% in the third quarter of 2017 and negative 1.8% in the fourth quarter of 2016.

Non-cash depreciation and amortization charges in the fourth quarter of 2017 were approximately $37.2 million, compared to $23.8 million in the third quarter of 2017, and $19.3 million in the fourth quarter of 2016. Non-cash equity compensation expense in the fourth quarter of 2017 was $2.2 million, compared to $2.1 million in the third quarter of 2017 and $2.2 million in the fourth quarter of 2016.

Interest expense in the fourth quarter of 2017 was $33.5 million, compared to $33.7 million in the third quarter of 2017 and $22.9 million in the fourth quarter of 2016.

Interest income in the fourth quarter of 2017 was $3.2 million, compared to $3.4 million in the third quarter of 2017 and $2.4 million in the fourth quarter of 2016. 

The Company recorded a gain on change in fair value of derivatives in the fourth quarter of 2017 of $7.6 million, compared to a gain of $1.8 million in the third quarter of 2017 and a gain of $24.2 million in the fourth quarter of 2016. Foreign exchange loss in the fourth quarter of 2017 was $9.5 million, compared to $16.5 million in the third quarter of 2017, and $12.5 million in the fourth quarter of 2016.

Income tax expense in the fourth quarter of 2017 was $28.9 million, compared to $6.2 million in the third quarter of 2017 and an income tax benefit of $10.6 million in the fourth quarter of 2016.

Net income attributable to Canadian Solar in the fourth quarter of 2017 was $61.4 million or $1.01 per diluted share, compared to $13.3 million or $0.22 per diluted share in the third quarter of 2017 and a net loss of $13.3 million or $0.23 per diluted share in the fourth quarter of 2016.

Financial Condition

The Company had $1.19 billion of cash, cash equivalents and restricted cash as of December 31, 2017, compared to $1.15 billion as of September 30, 2017.

Accounts receivable, net of allowance for doubtful accounts, at the end of the fourth quarter of 2017 were $358.1 million, compared to $457.4 million at the end of the third quarter of 2017. Accounts receivable turnover in the fourth quarter of 2017 was 38 days, compared to 47 days in the third quarter of 2017.

Inventories at the end of the fourth quarter of 2017 were $346.1 million, compared to $301.5 million at the end of the third quarter of 2017. Inventory turnover in the fourth quarter of 2017 was 35 days, compared to 37 days in the third quarter of 2017.

Accounts and notes payable at the end of the fourth quarter of 2017 were $975.6 million, compared to $1.06 billion at the end of the third quarter of 2017.

Excluding the approximately $166.2 million of 'Liabilities held-for-sale', short-term borrowings at the end of the fourth quarter of 2017 were $1.96 billion, compared to $2.14 billion at the end of the third quarter of 2017. Long-term borrowings at the end of the fourth quarter of 2017 were $404.3 million, compared to $318.2 million at the end of the third quarter of 2017. 

Senior convertible notes totaled $126.5 million at the end of the fourth quarter of 2017, compared to $126.2 million at the end of the third quarter of 2017.

Total borrowings directly related to utility-scale solar power projects were $1.38 billion at the end of the fourth quarter of 2017, compared to $1.43 billion at the end of the third quarter of 2017. Excluding the approximately $166.2 million of 'Liabilities held-for-sale' but including the senior convertible notes, total borrowings at the end of the fourth quarter of 2017 were approximately $2.49 billion, of which $1.02 billion was non-recourse. Approximately $890.7 million of the non-recourse borrowings related to utility-scale solar power projects.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, "2017 was an exceptional and milestone year for the PV industry, in which total global new solar installation reached 100 GW for the first time in our history. This demonstrates that solar is quickly approaching grid parity and is penetrating more and more markets. Our revenue, shipments, gross margin and net income all exceeded our expectations for the fourth quarter and full year 2017. Our record-high solar module shipments for the full year 2017 were driven by strong demand from China, India, Europe and the United States. We are also pleased with the impressive project sale momentum we achieved, led by demand for our highly-attractive project assets, which we have carefully built up over the past few years in key markets worldwide. We remain focused on securing a competitive return on all of our project investments; and redeploying the capital received into new project opportunities, while also paying down our debt as we continue to build shareholder value. Our portfolio of solar power plants in operation was approximately 1.2 GWp as of February 28, 2018, with an estimated total resale value of approximately $1.5 billion. Our portfolio of late-stage solar power projects, as of February 28, 2018, including those in construction, totaled approximately 2.0 GWp giving us added visibility and confidence."

Dr. Huifeng Chang, Senior Vice President and Chief Financial Officer of Canadian Solar, added: "We benefitted from the higher margin contribution from the sale of 72.7 MWp of solar projects to CSIF in Japan. We are encouraged by our success in monetizing our operating solar power assets globally. This serves as a further validation of the strength of our business model. We will continue to execute on our strategy to enhance our balance sheet and redeploy our capital to support the profitable growth of our business and build value for shareholders."

Business Outlook

The Company's business outlook is based on management's current views and estimates with respect to operating and market conditions, its current order book and the global financing environment. It is also subject to uncertainty relating to final customer demand and solar project construction and sale schedules. Management's views and estimates are subject to change without notice.

For the first quarter of 2018, the Company expects total solar module shipments to be in the range of approximately 1.30 GW to 1.35 GW, including approximately 65 MW of shipments to the Company's utility-scale solar power projects that may not be recognized as revenue in first quarter 2018. Total revenue for the first quarter of 2018 is expected to be in the range of $1,370 million to $1,400 million, which includes recognized revenue from the sales of solar projects during the quarter. Gross margin for the first quarter is expected to be between 10.0% and 12.0%, which reflects the impact of lower margin U.S. solar projects we have already sold in the quarter.

For the full year 2018, the Company expects total module shipments to be in the range of 6.6 GW to 7.1 GW. Total revenue for the full year 2018 is expected to be in the range of $4.4 billion to $4.6 billion. We expect approximately 53% of total revenue for 2018 to come from our Solar Module and Components Business, while the balance will come from our Energy Business. The Energy Business revenue will mainly come from monetization of the Company's solar power plants in the U.S., Japan, China and the UK. The Company expects its cost of production will decrease throughout the year as material costs decrease and new, higher efficiency cell and module capacity comes online.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, "Moving into 2018, we have seen price adjustment throughout the solar value chain. We expect that our technology, new products and the increase in vertical integration along the manufacturing process will help the Company further build upon its leadership position."


Perfiles en ENF para compañías mencionadas en este artículo

CSI Solar (Materiales Solares): https://es.enfsolar.com/csi-solar
CSI Solar (Paneles Solares): https://es.enfsolar.com/csi-solar
CSI Solar (Componentes): https://es.enfsolar.com/csi-solar
CSI Solar (Instaladores): https://es.enfsolar.com/csi-solar
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