2014

LDK Solar Reports Financial Results for the Second Quarter of Fiscal 2013

XINYU CITY, China and SUNNYVALE, Calif., Aug. 27, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today reported its unaudited financial results for the second quarter ended June 30, 2013.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Second Quarter Highlights:

  • Net sales of $114.7 million;
  • Shipped 303.9 megawatts (MW) of wafers; and
  • Shipped 35.3 MW of cells and modules in the second quarter.

Net sales for the second quarter of fiscal 2013 were $114.7 million, compared to $104.3 million for the first quarter of fiscal 2013, and $235.4 million for the second quarter of fiscal 2012.

Gross loss for the second quarter of fiscal 2013 was $53.8 million, compared to gross loss of $59.5 million in the first quarter of fiscal 2013, and gross loss of $92.0 million for the second quarter of fiscal 2012.

Gross margin for the second quarter of fiscal 2013 was negative 46.9%, compared to negative 57.0% in the first quarter of fiscal 2013, and negative 39.1% in the second quarter of fiscal 2012.

LDK Solar's management determined that a loss on recoverable VAT of $19.5 million and an inventory write-down of $3.7 million was required during the preparation of its second quarter 2013 financial results.  As a result, gross margin and results from operations were negatively impacted in the second quarter of fiscal 2013.

Loss from operations for the second quarter of fiscal 2013 was $95.1 million, compared to loss from operations of $93.2 million for the first quarter of fiscal 2013, and loss from operations of $172.7 million for the second quarter of fiscal 2012. During the second quarter of 2013, LDK Solar's management determined that a provision for doubtful trade receivables of $9.0 million was required in view of the deteriorating solar market which negatively affected our customers.

Operating margin for the second quarter of fiscal 2013 was negative 82.9% compared to negative 89.4% in the first quarter of fiscal 2013, and negative 73.4% in the second quarter of fiscal 2012.

Income tax benefit for the second quarter of fiscal 2013 was $4.8 million, compared to income tax benefit of $1.3 million in the first quarter of fiscal 2013 and income tax benefit of $23.7 million in the second quarter of fiscal 2012.

Net loss available to LDK Solar's shareholders for the second quarter of fiscal 2013 was $165.3 million, or a loss of $0.97 per diluted ADS, compared to net loss of $187.1 million, or a loss of $1.21 per diluted ADS for the first quarter of fiscal 2013 and net loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 170.5 million for the second quarter of fiscal 2013.

LDK Solar ended the second quarter of fiscal 2013 with $85.1 million in cash and cash equivalents and $203.0 million in short-term pledged bank deposits.

"We delivered second quarter revenue that was in line with expectations and reduced our net loss both sequentially and on a year-over-year basis," stated Sam Tong, President and CEO of LDK Solar.  "We have been navigating the challenging solar industry dynamics with a focus on improving our cost structure and becoming a more nimble company.  We are starting to see early signs of improvement within the PV market as ASP's are beginning to stabilize.  We are also encouraged by recent updates on solar policies from China and the EU." 

"We have built a solid pipeline of solar project business worldwide and we remain committed to working with the relevant shareholders, banks and government agencies to secure the resources needed to drive these projects forward," continued Mr. Tong.

"We continue to work diligently on initiatives to improve our cost structure by driving down production costs and tightening operating expenses.   By adapting our business to the evolving demand environment, we believe we will position LDK Solar for long term growth—furthering our ability to take advantage of the substantial market opportunity to address global energy needs with solar power," concluded Mr. Tong.

Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $140 million to $180 million, wafer shipments between 350 MW and 450 MW and cell and module shipments between 60 MW and 80 MW.

Conference Call Details
The LDK Solar Second Quarter 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on August 27, 2013.  To listen to the live conference call, please dial 877-941-2068 (within U.S.) or 480-629-9712 (outside U.S.) at 8:00 a.m. ET on August 27, 2013.  An audio replay of the call will be available through September 6, 2013, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4635695#.

A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.

 

LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Balance Sheet Information

(In US$'000)


 6/30/2013


3/31/2013

Assets




Current assets




    Cash and cash equivalents

85,142


174,101

    Pledged bank deposits

202,952


168,415

    Trade accounts and bills receivable, net

113,188


162,511

    Inventories

211,751


230,222

    Prepayments to suppliers, net

22,185


20,391

    Assets classified as held for sale

-


508,142

    Other current assets

195,631


194,964

Total current assets

830,849


1,458,746

Property, plant and equipment, net

3,018,596


3,040,452

Deposits for purchases of property, plant and equipment and land use rights

157,160


155,983

Land use rights

244,615


242,412

Prepayments to suppliers expected to be utilized beyond one year, net

6,523


7,214

Pledged bank deposits – non-current

3,896


13,221

Investments in associates

8,005


8,241

Other non-current assets

108,715


66,991

Total assets                                                               

4,378,359


4,993,260





Liabilities, redeemable non-controlling interests and equity




Current liabilities




    Short-term borrowings and current installments of long-term borrowings

2,391,319


2,522,826

    Trade accounts and bills payable

699,245


647,817

    Advance payments from customers, current

         installments                                                         

 

138,703


 

129,467

    Accrued expenses and other payables

860,945


739,046

    Liabilities directly associated with assets classified as

          held for sale                                                        

 

-


 

537,112

RMB-denominated US$-settled senior notes, less debt discount

264,028


260,214

    Convertible senior notes, less debt discount

-


23,791

    Other financial liabilities

81,352


91,723

Total current liabilities

4,435,592


4,951,996





Long-term borrowings, excluding current installments and long-term PRC notes

103,423


109,759

Advance payments from customers – non-current

35,931


39,816

Other liabilities

215,153


195,668

Total liabilities

4,790,099


5,297,239





Redeemable non-controlling interests

382,847


356,604





Equity








Total LDK Solar Co., Ltd. shareholders' equity

(770,033)


(639,357)

Non-controlling interests

(24,554)


(21,226)





Total equity

(794,587)


(660,583)





Total liabilities, redeemable non-controlling interests and equity

4,378,359


4,993,260






 

LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

(In US$'000, except per ADS data)


For the 3 Months Ended


06/30/2013


03/31/2013





Net sales

114,710


104,341

Cost of goods sold

(168,482)


(163,829)

Gross loss

(53,772)


(59,488)

Selling expenses

(3,786)


(4,832)

General and administrative expenses

(33,797)


(25,914)

Research and development expenses

(3,697)


(2,995)

Total operating expenses

(41,280)


(33,741)

Loss from operations

(95,052)


(93,229)

Other income (expenses):




   Interest income

1,731


1,207

   Interest expense and amortization of debt issuance costs and debt discount

(58,917)


(57,821)

   Foreign currency exchange loss, net

(8,443)


(9,404)

   Others, net

12,543


1,855

Loss before income tax

(148,138)


(157,392)

Income tax benefit

4,776


1,341

Net loss

(143,362)


(156,051)

Loss attributable to non-controlling interests

3,251


2,966

Loss attributable to redeemable non-controlling interests

7,030


6,154

Net loss attributable to LDK Solar Co., Ltd. shareholders

(133,081)


(146,931)





Accretion to redemption value of redeemable non-controlling interests

 

(32,221)


 

(40,155)

Net loss available to LDK Solar Co., Ltd. shareholders

 

(165,302)


 

(187,086)





Net loss per ADS, Diluted

$     (0.97)


$     (1.21)





 

Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

(In US$ '000)





 

Net loss

(143,362)


(156,051)

Other comprehensive loss




Foreign currency exchange translation adjustment, net of nil tax

8,361


6,471

Fair value changes in available-for-sale equity security, net of tax effect

(548)


724

Comprehensive loss

(135,549)


(148,856)

Less: comprehensive loss attributable to non-controlling interests

(3,339)


(2,829)

Less: comprehensive loss attributable to redeemable non-controlling interests

(5,478)


(5,845)





Comprehensive loss attributable to LDK Solar Co., Ltd. shareholders

(126,732)


(140,182)










About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, cells, modules, systems, power projects and solutions. LDK Solar's headquarters and principal manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. LDK Solar's office in the United States is located in Sunnyvale, California. For more information about LDK Solar and its products, please visit www.ldksolar.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing projects, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the PV industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.

SOURCE LDK Solar Co., Ltd.



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