ReneSola Announces First Quarter 2013 Results

Exceeds guidance with record quarterly solar module shipments of 327 MW

Exceeds guidance with total revenues of US$284 million

Achieves guidance with total shipments of 662 MW

Expects total solar module shipments to reach a record 400 MW to 420 MW in Q2 2013

Expects total shipments to exceed 700 MW in Q2 2013

Expects operating cash flow to exceed US$40 million in Q2 2013

16 May, 2013, 06:30 ET from ReneSola Ltd.

JIASHAN, China, May 16, 2013 /PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company") (NYSE: SOL), a leading brand and technology provider of solar photovoltaic ("PV") products, today announced its unaudited financial results for the first quarter ended March 31, 2013. (Logo: http://photos.prnewswire.com/prnh/20080506/CNTU030 )

First Quarter 2013 Financial and Operating Highlights

  • Total solar wafer and module shipments in Q1 2013 were 662.1 megawatts ("MW"), in line with the Company's guidance and representing a decrease of 7.2% from 713.2 MW in Q4 2012.
  • Q1 2013 net revenues were US$284.2 million, exceeding Company guidance and representing a decrease of 7.3% from US$306.5 million in Q4 2012.
  • Q1 2013 gross loss was US$5.6 million with a gross margin of negative 2.0%, compared to a gross profit of US$10.3 million with a gross margin of 3.3% in Q4 2012.
  • Q1 2013 operating loss was US$33.4 million with an operating margin of negative 11.8%, compared to an operating loss of US$23.8 million with an operating margin of negative 7.8% in Q4 2012.
  • Q1 2013 net loss was US$39.0 million, representing basic and diluted loss per share of US$0.23 and basic and diluted loss per American depositary share ("ADS") of US$0.45.
  • Cash and cash equivalents plus restricted cash were $442.7 million as of the end of Q1 2013, an increase from US$268.1 million as of the end of Q4 2012.
  • Q1 2013 net cash inflow from operating activities was US$4.2 million, compared to net cash inflow of US$25.8 million in Q4 2012.

"Over the past year, we have worked hard to transform our company into a leading global solar brand and technology leader," said Mr. Xianshou Li, ReneSola's chief executive officer. "With vigorous sales and marketing efforts, we have expanded our module business in several key markets, including the United Kingdom, Germany, France, the United States, Australia, India and Japan. Additionally, we continue to push our R&D with downstream products like our AC module and small-scale storage system, and we plan to offer residential PV solutions soon. Although we are seeing the solar market stabilize, a persistent demand-supply imbalance, coupled with competitive pricing, continues to impact our business and the overall industry. Despite this challenging macro environment, we will continue to invest in technologies that help reduce cost and improve efficiency in order to grow our business and gain new global market share."

First Quarter 2013 Results

Solar Wafer and Module Shipments

1Q13

4Q12

1Q12

Q-o-Q%

Y-o-Y%

Total Solar Wafer and Module Shipments (MW)

662.1

713.2

466.0

(7.2%)

42.1%

Wafer Shipments (MW)

335.5

392.7

375.1

(14.6%)

(10.6%)

Module Shipments (MW)

326.6

320.5

90.9

1.9%

259.3%

The sequential decrease in solar product shipments was mainly the result of a decrease in sales of the Company's wafer business due to additional wafers being used to produce ReneSola-branded modules, partially offset by increased demand for the Company's solar modules across a number of geographic regions and the increasing competitiveness of solar power as a viable power source.

Net Revenues

1Q13

4Q12

1Q12

Q-o-Q%

Y-o-Y%

Net Revenues (US$mln)

$284.2

$306.5

$211.5

(7.3%)

34.4%

Revenues in Q1 2013 decreased quarter over quarter due to a decrease in the average selling prices ("ASPs") of solar wafers and modules from US$0.24 per watt ("W") and US$0.63/W, respectively, to US$0.22/W and US$0.61/W, respectively, as well the decrease in wafer shipments.

Gross Profit (Loss)

1Q13

4Q12

1Q12

Q-o-Q%

Y-o-Y%

Gross Profit (Loss) (US$mln)

($5.6)

$10.3

($8.0)

(154.4%)

-

Gross Margin

(2.0%)

3.3%

(3.8%)

-

-

The decrease in gross profit was due to the significant decline in ASPs and the decrease in wafer shipments, as well as the temporary halt in production at the Company's Sichuan polysilicon plant to upgrade its facilities and equipment.

Operating Loss

1Q13

4Q12

1Q12

Q-o-Q%

Y-o-Y%

Operating Expenses (US$mln)

$27.8

$34.0

$29.8

(18.2%)

(6.7%)

Operating Loss (US$mln)

($33.4)

($23.8)

($37.8)

(40.3%)

-

Operating Margin 

(11.8%)

(7.8%)

(17.9 %)

-

-

The decrease in operating expenses was primarily due to a reduction in the Company's research and development ("R&D") expenses in Q1 2013.

Foreign Exchange Gain (Loss)

The Company had a foreign exchange loss of US$3.0 million in Q1 2013, primarily due to the depreciation of the euro against the renminbi ("RMB"), compared to a gain of US$3.1 million in Q4 2012. The Company also recognized a US$3.9 million gain on foreign currency derivatives, compared to a gain of US$0.9 million in Q4 2012.

Net Loss Attributable to Holders of Ordinary Shares

1Q13

4Q12

1Q12

Net Loss (US$mln)

($39.0)

($88.9)

($40.2)

Diluted Loss per Share

($0.23)

($0.51)

($0.23)

Diluted Loss per ADS

($0.45)

($1.03)

($0.47)

Business Highlights

Research and Development

ReneSola continued to invest in R&D in Q1 2013 to improve the technology behind its brand, products and manufacturing processes. With regard to solar wafers, the Company's next generation Virtus A+++ wafer, with an average efficiency of 0.15% to 0.20% higher than that of Virtus A++, will begin mass production in Q2 2013. 

With regard to solar modules, the Company's 210 W monocrystalline and 260 W multicrystalline modules are now in full production. The Company's full line of solar module products has achieved potential induced degradation ("PID") free status, further substantiating their reliability. Recently, the Company's solar modules have been accredited by TUV NORD, a leading German industry-certification body, demonstrating that ReneSola products can withstand difficult desert-like and dusty conditions.

ReneSola is developing a proprietary, second-generation Micro Replus microinverter, which will reduce the cost to customers by 20% compared to the first generation model. ReneSola is also developing an AC module that combines a solar module with Micro Replus. At the same time, a specialized, small-scale storage research team has been established to develop a series of systems that would largely increase the efficiency of ReneSola's products.

Recent Business Developments

  • In May 2013, ReneSola announced it had provided solar modules to solar tracker manufacturer and project developer AllEarth Renewables, Inc. for use in three community-scale solar power projects in Vermont.
  • In April 2013, ReneSola announced its 125-square monocrystalline module had been listed by the Japan Photovoltaic Expansion Center ("JPEC") as qualified for the Japan market.
  • In April 2013, ReneSola announced that following its participation at the World Future Energy Summit ("WFES") in Abu Dhabi earlier in the year, a range of its PV modules had been accredited by TUV NORD.
  • In April 2013, ReneSola announced it had agreed to provide Enerparc AG, an internationally oriented and dynamically growing provider of solar power plant installation and operation services, with 43.6 MW of solar modules, 35 MW of which will be delivered through original equipment manufacturers in Poland and India.
  • In April 2013, ReneSola announced it had signed a sales contract to supply 2 MW of its highest-efficiency polysilicon module, 260 W Virtus II, to a mega solar project in Uenohara-shi, Yamanashi Prefecture, Japan.
  • In April 2013, ReneSola announced it had been contracted to provide 7,200 of its 250 W high-efficiency polycrystalline solar PV modules for a solar project to be built by S&C Electric Company, a Chicago-based provider of equipment and services for electric power systems, in Roswell, New Mexico in 2013.
  • In April 2013, ReneSola announced it had agreed to provide more than 108,000 of its 300 W high-efficiency Virtus II 72-cell polycrystalline solar modules to Strata Solar, LLC, one of the top solar developers and EPCs in the United States, for use in five 6.5 MW solar farms in North Carolina.
  • In March 2013, ReneSola announced it had signed a RMB320 million (approximately US$50.9 million) 15-year loan agreement with China Development Bank.
  • In March 2013, ReneSola announced it had been contracted to provide 460 kilowatts ("kW") of its high-efficiency solar modules to Cummings Properties, one of the most prominent full-service commercial real estate development and property management organizations in Massachusetts.

Liquidity and Capital Resources

Net cash inflow from operating activities was US$4.2 million in Q1 2013, compared to net cash inflow from operating activities of US$25.8 million in Q4 2012. Net cash and cash equivalents plus restricted cash improved to US$442.7 million at the end of Q1 2013, compared to US$268.1 million at the end of Q4 2012.

Total debt was US$958.6 million at the end of Q1 2013, compared to US$790.2 million at the end of Q4 2012, excluding US$111.6 million of convertible notes due March 15, 2018, unless repurchased or converted at an earlier date. Short-term borrowings were US$832.8 million in Q1 2013, compared to US$733.6 million in Q4 2012.

Capital expenditures were US$5.7 million in Q1 2013, primarily to expand the Company's polysilicon production capacity and integrate Phase II of its Sichuan polysilicon production plant.

Outlook

For Q2 2013, the Company expects total solar wafer and module shipments to be in the range of 700 MW to 720 MW, with solar module shipments expected to be in the range of 400 MW to 420 MW. Revenues are expected to be in the range of US$310 million to US$330 million and gross margin is expected to be in the range of 3% to 5%. Operating cash flow is expected to exceed US$40 million.

For the full year 2013, the Company expects total solar wafer and module shipments to be in the range of 2.7 GW to 2.9 GW, with solar module shipments expected to be in the range of 1.4 GW to 1.6 GW.

Conference Call Information

ReneSola's management will host an earnings conference call on Thursday, May 16, 2013 at 8 am U.S. Eastern Time (8 pm Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S. / International:     

+1-718-354-1231

Hong Kong:                

+852-2475-0994

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "ReneSola Call".

A replay of the conference call may be accessed by phone at the following number until May 23, 2013:

International:  

+1-646-254-3697

Passcode:        

51826642

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola's website at www.renesola.com.

About ReneSola

Founded in 2005, ReneSola (NYSE: SOL) is a leading brand and technology provider of solar PV products. Leveraging its proprietary technologies, economies of scale and technical expertise, ReneSola uses in-house virgin polysilicon and a vertically integrated business model to provide customers with high-quality, cost-competitive products. ReneSola solar modules have scored top PVUSA Test Conditions (PTC) ratings with high annual kilowatt-hour output, according to the California Energy Commission (CEC). ReneSola solar PV modules can be found in projects ranging in size from a few kilowatts to multi-megawatts in markets around the world, including the United States, Germany, Italy, Belgium, China, Greece, Spain and Australia. For more information, please visit www.renesola.com.

Safe Harbor Statement

This press release contains statements that constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Whenever you read a statement that is not simply a statement of historical fact (such as when the Company describes what it "believes," "expects" or "anticipates" will occur, what "will" or "could" happen, and other similar statements), you must remember that the Company's expectations may not be correct, even though it believes that they are reasonable. The Company does not guarantee that the forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements is included in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on Form 20-F. The Company undertakes no obligation, beyond that required by law, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though the Company's situation may change in the future.

For investor and media inquiries, please contact:

In China:

Mr. Tony Hung ReneSola Ltd Tel: +86-573-8473-9011 Email: ir@renesola.com

Mr. Derek Mitchell Ogilvy Financial, Beijing Tel: +86-10-8520-3073 Email: sol@ogilvy.com

In the United States:

Ms. Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: sol@ogilvy.com

 

RENESOLA LTD

 Unaudited Consolidated Balance Sheet

 (US dollars in thousands)

Mar 31,

Dec 31,

 Mar 31,

2013

2012

2012

 ASSETS

 Current assets:

 Cash and cash equivalents 

142,983

93,283

338,899

 Restricted cash 

299,681

174,828

49,392

 Accounts receivable, net of allowances for doubtful accounts

263,737

216,835

170,817

 Inventories

292,767

254,880

176,410

 Advances to suppliers-current

10,355

23,614

25,449

 Amounts due from related parties

9,133

10,804

22,807

 Value added tax recoverable

35,271

34,962

55,369

 Income tax recoverable

3,011

2,753

8,308

 Prepaid expenses and other current assets 

27,748

32,799

26,408

 Project assets

30,572

25,802

-

 Deferred convertible bond issue costs-current

784

784

784

 Derivative assets

3,417

660

826

 Assets held-for-sale

-

-

6,449

 Deferred tax assets-current

2,856

1,773

15,770

 Total current assets 

1,122,315

873,777

897,688

 Property, plant and equipment, net

1,123,584

1,102,562

985,977

 Prepaid land use right

47,250

49,937

49,120

 Deferred tax assets-non-current

17,325

13,530

28,805

 Deferred convertible bond issue costs-non-current

1,530

1,726

2,314

 Advances to suppliers-non-current

5,928

5,928

15,604

 Advances for purchases of property, plant and equipment 

6,985

8,317

51,123

 Other long-term assets

2,365

2,546

10,942

 Goodwill

-

-

6,095

 Total assets 

2,327,282

2,058,323

2,047,668

 LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities:

 Short-term borrowings 

832,766

733,618

662,605

 Accounts payable 

569,391

483,025

283,067

 Advances from customers-current

70,067

40,384

55,603

 Amounts due to related parties 

24,886

18,826

26,147

 Other current liabilities 

199,620

162,849

99,876

 Income tax payable

2,680

2,552

4,111

 Derivative liabilities

131

975

150

 Total current liabilities 

1,699,541

1,442,229

1,131,559

 Convertible bond payable-non-current

111,616

111,616

111,616

 Long-term borrowings 

125,883

56,580

138,198

 Advances from customers-non-current

6,168

32,271

49,039

 Warranty 

12,317

10,317

13,816

 Deferred gain

36,527

29,894

29,527

 Other long-term liabilities 

8,042

11,014

12,339

 Total liabilities 

2,000,094

1,693,921

1,486,094

 Shareholders' equity

   Common shares 

421,461

421,461

420,370

   Additional paid-in capital 

5,525

5,250

5,106

   Retained earnings/(Accumulated losses)

(176,660)

(137,656)

64,650

   Accumulated other comprehensive income 

76,376

74,835

71,176

 Total equity attribute to ReneSola Ltd

326,702

363,890

561,302

 Non-controlling interest

486

512

272

 Total shareholders' equity

327,188

364,402

561,574

 Total liabilities and shareholders' equity 

2,327,282

2,058,323

2,047,668

 

RENESOLA LTD

Unaudited Consolidated Statements of Income

(US dollar in thousands, except ADS and share data)

Three Months Ended

Mar 31, 2013

Dec 31, 2012

Mar 31, 2012

Net revenues

284,165

306,454

211,485

Cost of revenues

(289,771)

(296,193)

(219,518)

Gross profit (loss)

(5,606)

10,261

(8,033)

GP%

(2.0%)

3.3%

(3.8%)

Operating (expenses) income:

Sales and marketing

(12,223)

(11,097)

(5,639)

General and administrative

(15,136)

(12,074)

(12,562)

Research and development

(5,982)

(10,612)

(11,713)

Other operating  income, net

5,522

3,894

143

Goodwill impairment

-

(378)

-

Intangible asset impairment

-

(3,764)

-

Total operating expenses

(27,819)

(34,031)

(29,771)

Loss from operations

(33,425)

(23,770)

(37,804)

Non-operating (expenses) income:

Interest income

1,548

1,380

2,806

Interest expense

(13,118)

(12,950)

(12,308)

Foreign exchange gain (loss)

(3,011)

3,054

801

Gain on derivatives, net

3,865

881

36

Total non-operating expenses

(10,716)

(7,635)

(8,665)

Loss before income tax, non-controlling interests

(44,141)

(31,405)

(46,469)

Income tax benefit (expense)

5,131

(57,508)

6,249

Net loss

(39,010)

(88,913)

(40,220)

Less: Net loss attributed to non-controlling interests

(6)

(2)

(11)

Net loss attributed to holders of ordinary shares

(39,004)

(88,911)

(40,209)

Earnings per share

  Basic

(0.23)

(0.51)

(0.23)

  Diluted

(0.23)

(0.51)

(0.23)

Earnings per ADS

  Basic

(0.45)

(1.03)

(0.47)

  Diluted

(0.45)

(1.03)

(0.47)

Weighted average number of shares used in computing earnings per share

  Basic

172,773,664

172,773,664

172,613,664

  Diluted

172,773,664

172,773,664

172,613,664

Three Months ended

Mar 31, 2013

Dec 31, 2012

Mar 31, 2012

Net loss

(39,010)

(88,913)

(40,220)

Other comprehensive income

Foreign exchange translation adjustment

1,541

4,129

(470)

Other comprehensive income

1,541

4,129

(470)

Comprehensive loss

(37,469)

(84,784)

(40,690)

Less: comprehensive loss attributable to non-controlling interest

(6)

(2)

(11)

Comprehensive loss attributable to ReneSola

(37,463)

(84,782)

(40,679)

 

 

 

RENESOLA LTD

Unaudited Consolidated Statements of Cash Flow

(US dollar in thousands)

 Three Months Ended 

Mar 31, 2013

Mar 31, 2012

Cash flow from operating activities:

Net loss

(39,010)

(40,220)

Adjustment to reconcile net loss to net cash (used in) provided by operating activity:

  Gain on disposal of subsidiary

-

(55)

  Inventory write-down

402

12,201

  Depreciation and amortization

24,882

22,897

  Amortization of deferred convertible bond issuances costs and premium

196

196

  Allowance of doubtful receivables and advance to suppliers

2,613

90

  Gains on derivatives

(3,865)

(36)

  Share-based compensation

275

995

  Loss on disposal of long-lived assets

31

115

  Gain on disposal of land use right

(4,694)

-

Changes in assets and liabilities:

  Accounts receivables

(56,437)

(63,987)

  Inventories

(38,422)

(34,740)

  Advances to suppliers

13,307

(7,255)

  Amounts due from related parties

7,679

4,626

  Value added tax recoverable

(202)

(13,512)

  Prepaid expenses and other current assets

7,165

(6,274)

  Prepaid land use rights

7,531

(127)

  Accounts payable

84,838

47,311

  Advances from customers

3,882

(1,613)

  Income tax payable

(7,713)

(356)

  Other current liabilities

8,164

(2,369)

  Other long-term liabilities

(3,248)

(241)

  Accrued warranty cost

1,964

986

  Deferred taxes assets

2,502

(6,249)

  Project assets

(5,681)

-

  Provision for litigation

(1,941)

-

Net cash provided by (used in) operating activities

4,218

(87,617)

Cash flow from investing activities:

  Purchases of property, plant and equipment

(5,730)

(45,020)

  Cash received from government subsidy

6,741

634

  Proceeds from disposal of property, plant and equipment

-

22

  Changes in restricted cash

(124,070)

8,895

  Net proceeds from settlement of derivatives

265

115

  Prepayment for investment

-

(1,912)

Net cash used in investing activities

(122,794)

(37,266)

Cash flow from financing activities:

  Proceeds from bank borrowings

488,567

278,764

  Repayment of bank borrowings

(320,325)

(193,253)

  Contribution from non-controlling interests

(21)

127

Net cash provided by financing activities

168,221

85,638

Effect of exchange rate changes

55

(895)

Net increase (decrease) in cash and cash equivalent

49,700

(40,140)

Cash and cash equivalent, beginning of year

93,283

379,039

Cash and cash equivalent, end of year

142,983

338,899

SOURCE ReneSola Ltd.



RELATED LINKS

http://www.renesola.com