2014

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

XINYU CITY, China and SUNNYVALE, Calif., Nov. 26, 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 third quarter ended September 30, 2013.

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

Third Quarter Highlights:

  • Net sales of $156.6 million;
  • Shipped 463.1 megawatts (MW) of photovoltaic products, consisting of 384.7 MW of wafers and 78.4 MW of cells and modules.

Net sales for the third quarter of fiscal 2013 were $156.6 million, compared to $114.7 million for the second quarter of fiscal 2013, and $291.5 million for the third quarter of fiscal 2012.

Gross loss for the third quarter of fiscal 2013 was $37.6 million, compared to gross loss of $53.8 million in the second quarter of 2013, and gross loss of $32.5 million for the third quarter of fiscal 2012.

Gross margin for the third quarter of fiscal 2013 was negative 24.0%, compared to negative 46.9% in the second quarter of fiscal 2013, and negative 11.2% in the third quarter of fiscal 2012.

LDK Solar's management determined that an inventory write-down and provision for firm purchase commitment of $3.2 million was required during the preparation of the third quarter 2013 financial results.  As a result, gross margin and results from operations were negatively impacted in the third quarter of fiscal 2013.

Loss from operations for the third quarter of fiscal 2013 was $77.5 million, compared to loss from operations of $95.1 million for the second quarter of fiscal 2013, and loss from operations of $75.7 million for the third quarter of fiscal 2012. During the third quarter of fiscal 2013, LDK Solar's management determined that a provision for doubtful trade receivables of $4.6 million was required in view of the deteriorating solar market which negatively affected customers.

Operating margin for the third quarter of fiscal 2013 was negative 49.5% compared to negative 82.9% in the second quarter of fiscal 2013, and negative 26.0% in the third quarter of fiscal 2012.

Income tax benefit for the third quarter of fiscal 2013 was $3.1 million, compared to income tax benefit of $4.8 million in the second quarter of fiscal 2013 and income tax benefit of $25.4 million in the third quarter of fiscal 2012.

Net loss available to LDK Solar's shareholders for the third quarter of fiscal 2013 was $127.0 million, or a loss of $0.65 per diluted ADS, compared to net loss of $165.3 million, or a loss of $0.97 per diluted ADS for the second quarter of fiscal 2013 and net loss of $136.9 million, or a loss of $1.08 per diluted ADS for the third quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 194.8 million for the third quarter of fiscal 2013.

LDK Solar ended the third quarter of fiscal 2013 with $95.4 million in cash and cash equivalents and $130.4 million in short-term pledged bank deposits, with substantially all of the balance of cash and cash equivalents and pledged bank deposits onshore in the accounts of LDK Solar's subsidiaries in China.

"Our third quarter results were in line with expectations," stated Sam Tong, President and CEO of LDK Solar.  "We were pleased to deliver 37% sequential revenue growth and reduce our net loss available to LDK Solar's shareholders both sequentially and on a year-over-year basis.  We saw some signs of further improvement in the PV market during the quarter.  While European PV markets remained soft, we experienced increased demand from China, North America and other emerging solar markets."

"As announced, we recently signed a new onshore loan facility framework agreement with a syndicate of 11 commercial banks in China for a credit facility in the aggregate principal amount of RMB 1.56 billion. Although the drawdown under the facility will be subjected to various conditions, this new credit facility will support the ramp up of our onshore manufacturing operations for polysilicon, wafers, cells and modules within Jiangxi Province.  We remain committed to improving our cost structure by driving down production costs, reducing operating expenses and adapting our business to the evolving demand environment," continued Mr. Tong.

"During the quarter, we continued to pursue a number of initiatives focused on restructuring our business operations and on our liability management.  While the onshore syndicate facility will alleviate some of our onshore operating cash flow pressure in Jiangxi Province, our offshore value and cash flow are insufficient to solve even our short-term liquidity associated with our offshore indebtedness. We are working closely with our stakeholders and relevant advisors to negotiate a consensual solution to our offshore debt obligations," 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 fourth quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $200 million to $250 million, wafer shipments between 480 MW and 520 MW and cell and module shipments between 120 MW and 160 MW.

Conference Call Details

The LDK Solar Third Quarter 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on November 26, 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 November 26, 2013.  An audio replay of the call will be available through December 6, 2013, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4649644#.

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)






9/30/2013


6/30/2013

Assets




Current assets




    Cash and cash equivalents

95,426


85,142

    Pledged bank deposits

130,363


202,952

    Trade accounts and bills receivable, net

119,368


113,188

    Inventories

210,192


211,751

    Prepayments to suppliers, net

34,977


22,185

    Other current assets

180,786


195,631

Total current assets

771,112


830,849

Property, plant and equipment, net

2,973,787


3,018,596

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

140,656


157,160

Land use rights

244,495


244,615

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

5,756


6,523

Pledged bank deposits – non-current

3,837


3,896

Investments in associates

8,768


8,005

Other non-current assets

109,520


108,715

Total assets                                                               

4,257,931


4,378,359





Liabilities, redeemable non-controlling interests and equity




Current liabilities




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

 

2,408,664


 

2,391,319

    Trade accounts and bills payable

642,702


699,245

    Advance payments from customers, current

         installments                                                         

 

140,509


 

138,703

    Accrued expenses and other payables

876,077


860,945

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

265,361


264,028

    Other financial liabilities

113,211


81,352

Total current liabilities

4,446,524


4,435,592





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

103,827


103,423

Advance payments from customers – non-current

32,047


35,931

Other liabilities

215,358


215,153

Total liabilities

4,797,756


4,790,099





Redeemable non-controlling interests

382,847


382,847





Equity




Total LDK Solar Co., Ltd. shareholders' equity

(895,804)


(770,033)

Non-controlling interests

(26,868)


(24,554)

Total equity

(922,672)


(794,587)

Total liabilities, redeemable non-controlling interests and equity

4,257,931


4,378,359






LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

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



For the 3 Months Ended


09/30/2013


06/30/2013





Net sales

156,593


114,710

Cost of goods sold

(194,218)


(168,482)

Gross loss

(37,625)


(53,772)

Selling expenses

(4,539)


(3,786)

General and administrative expenses

(31,065)


(33,797)

Research and development expenses

(4,291)


(3,697)

Total operating expenses

(39,895)


(41,280)

Loss from operations

(77,520)


(95,052)

Other income (expenses):




   Interest income

2,655


1,731

   Interest expense and amortization of debt issuance costs and debt discount

 

(59,997)


 

(58,917)

   Foreign currency exchange gain (loss), net

1,994


(8,443)

   Others, net

69


12,543

Loss before income tax

(132,799)


(148,138)

Income tax benefit

3,061


4,776

Net loss

(129,738)


(143,362)

Loss attributable to non-controlling interests

 

2,279


 

3,251

Loss attributable to redeemable non-controlling interests

 

7,060


 

7,030

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

 

(120,399)


 

(133,081)





Accretion to redemption value of redeemable non-controlling interests

 

(6,596)


 

(32,221)

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

(126,995)


(165,302)





Net loss per ADS, Diluted

$       (0.65)


$       (0.97)





Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

(In US$ '000)





 

Net loss

(129,738)


(143,362)

Other comprehensive loss




Foreign currency exchange translation adjustment, net of nil tax

(931)


8,361

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

1,054


(548)

Comprehensive loss

(129,615)


(135,549)

Less: comprehensive loss attributable to non-controlling interests

(2,328)


(3,339)

Less: comprehensive loss attributable to redeemable non-controlling interests

(6,596)


(5,478)





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

(120,691)


(126,732)

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, its ability to achieve a consensual solution to its offshore liabilities, 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.



RELATED LINKS
http://www.ldksolar.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.