SunEdison Reports Second Quarter 2015 Results

Aug 06, 2015, 06:00 ET from SunEdison, Inc.

MARYLAND HEIGHTS, Mo., Aug. 6, 2015 /PRNewswire/ -- SunEdison, Inc. (NYSE: SUNE), the world's largest renewable energy development company, today announced financial results for the 2015 second quarter.

Quarterly Review:

  • SunEdison Devco: Unmatched Organic Execution
    • Record 404 MW delivered Q2 vs. guidance of 300-340 MW; up 186 MW year-over-year
    • 1.9 GW of projects under construction, up 1.1 GW quarter-over-quarter 
    • 8.1 GW Pipeline and 5.6 GW Backlog, 1.0 GW of gross pipeline additions
    • 4.2 GW - 4.5 GW 2016 guidance initiated, up 50 percent vs. prior outlook
  • TerraForm Power: Delivering World Class Execution and Growth
    • $65 million Q2 cash available for distribution, $0.335 DPS
    • $1.35 2015 DPS guidance on track, up 50 percent since IPO
  • Platform Transformation: Largely Complete
    • #1 Global Renewable Utility Scale Developer
    • DG leadership with Vivint Solar acquisition
    • GLBL IPO delivers widest geographic coverage of peers
    • SunEdison Semiconductor: remaining shares sold down during the quarter

"During the second quarter, we continued to balance operational execution while meeting our strategic objectives.  On the operations front, our leading organic development engine continues to execute as we exceeded our megawatt (MW) and Retained Cash Available for Distribution (CAFD) guidance, delivering 404 MW and $63 million, respectively," said Ahmad Chatila, SunEdison chief executive officer and TerraForm Power chairman.  "In addition, TerraForm Power delivered $65 million of CAFD and continues to create value for shareholders with its leading DPS growth. Finally, we have largely completed our platform transformation with the agreement to acquire Vivint Solar, a leader in residential solar, as well as the IPO of our Emerging Markets-focused asset ownership platform, TerraForm Global."

Key Operating Metrics

2Q 2015 Guidance

2Q 2015 Actual

Annualized Unlevered CAFD for Retained MW ($M)1

35-40

63

Delivered MW

300-340

404

Retained MW1

245-270

359

3rd Party Sales MW1

55-70

45

1 Defined in Supplemental Definitions

Renewable Energy Development - Operating Metrics

Pipeline Summary (MW)

2Q'15

1Q'15

2Q'14

Qtr/Qtr

Yr/Yr

Pipeline 1

8,117

7,519

3,176

598

or

8%

4,941

or

156%

Backlog 2

5,598

5,201

608

397

or

8%

4,990

or

821%

Construction

1,853

774

475

1,079

or

139%

1,378

or

290%

Pipeline Additions 3

1,002

2,681

  Note: Table unaudited

(1) Includes Backlog and Construction

(2) Includes Construction

(3)Net additions

Renewable Energy Development ended the quarter with a project pipeline of 8.1 gigawatt (GW), up 598 MW quarter-over-quarter and 4.9 GW year-over-year.  Net additions to pipeline projects were 1.0 GW, and net additions to backlog projects were 801 MW.  Under construction projects for the quarter was a record 1.9 GW, up 1.1 GW quarter-over-quarter and 1.4 GW year-over-year.

56.1 GW of Market Opportunities

GW

33.4

14.6

2.5

5.6

Stage

Leads

Qualified Leads

Pipeline Ex. Backlog

Backlog

Conversion %1

10.0%

40.0%

60.0%

90.0%

1 The percentages noted above are the historic rates at which projects in each stage have converted to completed projects

Renewable Energy Development ended the quarter with leads, qualified leads and pipeline totaling 56.1 GW of opportunities, up 3.4 GW quarter-over-quarter.  Based on historical conversion rates, these combined leads, qualified leads, pipeline and backlog are forecasted to convert into 15.7 GW of completed projects and $2.5 billion of Gross Annualized Unlevered CAFD from completed projects.

Discontinued Operations

On July 1, 2015, SunEdison disposed of 10,608,903 ordinary shares of SunEdison Semiconductor Ltd. ("SSL") in connection with an underwritten public offering of 15,935,828 ordinary shares at a price to the public of $18.25 per share. We received net proceeds from the disposal of $186 million.  As a result of this transaction, we have effectively liquidated our investment in SSL.  The disposal of our controlling interest in SSL completes a strategic shift that has a material effect on our operations and financial results.  As a result, our Semiconductor Materials segment is no longer considered a reportable segment and we have reported the historical results of operations and financial position of SSL as discontinued operations in the condensed consolidated financial statements for all periods presented.

TerraForm Power

TerraForm Power reported adjusted revenue of $132 million, adjusted EBITDA of $108 million, and CAFD of $65 million in the second quarter.  TerraForm Power today announced that its board of directors declared a second quarter dividend for TerraForm Power's Class A common stock of $0.335 per share, or $1.34 per share on an annualized basis. The cash distribution received by SunEdison on its class B units in TerraForm Power, LLC will be $20 million.

During the second quarter, TerraForm Power acquired 146 MW of contracted solar power plants from SunEdison located in the United States and United Kingdom. All of these power plants were on TerraForm Power's call right list, which is comprised of SunEdison projects which TerraForm Power has the exclusive right to purchase upon completion.

Outlook

The company has provided the following key metrics for the third quarter and full year 2015. The company expects the following, assuming no significant worldwide economic issues or other material events in these periods.

Key Metrics

3Q 2015 Outlook

FY 2015 Outlook

Unlevered Annualized CAFD for Retained MW ($M)

75 to 85

275 to 325

Total MW

540 to 600

2,100 to 2,300

Retained MW

490 to 530

1,840 to 2,000

3rd Party Sales MW

50 to 70

260 to 300

Conference Call

SunEdison will host a joint conference call with TerraForm Power today, Aug. 6, 2015, at 8:00 a.m. ET to discuss the company's 2015 second quarter results and related business matters.  A live webcast will be available on the company's web site at investors.sunedison.com.  The call-in number for the US and Canada is (800) 288-8960, and the international call-in number is   (612) 332-0335.  Callers may join by referencing "SunEdison," or the conference code 366216.  A copy of the slide presentation related to the conference call will be posted on the company's web site prior to the start of the call.

Telephone replays will be available starting two hours after the call ends.  The US and Canada number for replays is (800) 475-6701, and the international number is (320) 365-3844.  The access code is 366216.  A replay will also be available on the company's web site at investors.sunedison.com.

About SunEdison

SunEdison is the world's largest renewable energy development company and is transforming the way energy is generated, distributed, and owned around the globe. The company develops, finances, installs, owns and operates renewable power plants, delivering predictably priced electricity to its residential, commercial, government and utility customers.  SunEdison is one of the world's largest renewable energy asset managers and provides customers with asset management, operations and maintenance, monitoring and reporting services. Corporate headquarters are in the United States with additional offices and technology manufacturing around the world. SunEdison's common stock is listed on the New York Stock Exchange under the symbol "SUNE."  To learn more visit www.SunEdison.com.

Forward-Looking Statements

This communication may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks, and uncertainties and typically include words or variation of words such as "expect," "anticipate," "believe," "intend," "plan," "seek," "estimate," "predict," "project," "goal," "guidance," "outlook," "objective," "forecast," "target," "potential," "continue," "would," "will," "should," "could," or "may" or other comparable terms and phrases. All statements that address operating performance, events, or developments that SunEdison expects or anticipates will occur in the future are forward-looking statements. They may include estimates of expected cash available for distribution (CAFD), earnings, revenues, capital expenditures, liquidity, capital structure, future growth, and other financial performance items (including future dividends per share), descriptions of management's plans or objectives for future operations, products, or services, or descriptions of assumptions underlying any of the above. Forward-looking statements provide SunEdison's current expectations or predictions of future conditions, events or results and speak only as of the date they are made.  Although SunEdison believes its expectations and assumptions are reasonable, it can give no assurance that these expectations and assumptions will prove to have been correct and actual results may vary materially.

By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, delays or unexpected costs during the completion of projects under construction; regulatory requirements and incentives for production of renewable and solar power; operating and financial restrictions under agreements governing indebtedness; the condition of capital markets and our ability to borrow additional funds and access capital markets; the ability to compete against traditional and renewable energy companies; challenges inherent in constructing and maintaining renewable energy projects; the success of ongoing research and development efforts; the ability to successfully integrate the businesses of acquired companies and realize the benefits of such acquisitions; and hazards customary to the power production industry and power generation operations, such as unusual weather conditions and outages. Furthermore, any dividends are subject to available capital, market conditions and compliance with associated laws and regulations. Many of these factors are beyond SunEdison's control.

SunEdison disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data, or methods, future events, or other changes, except as required by law. The foregoing list of factors that might cause results to differ materially from those contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties which are described in SunEdison's Form 10-K for the fiscal year ended December 31, 2014, as well as additional factors it may describe from time to time in other filings with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions; except per share data)

Three Months Ended,

Six Months Ended,

June 30,

2015

March 31, 2015

June 30,

2014

June 30,

2015

June 30, 2014

Net sales

$

455

$

323

$

431

$

778

$

771

Cost of goods sold

352

289

426

641

728

Gross profit

103

34

5

137

43

Operating expenses:

Marketing and administration

259

198

108

457

201

Restructuring charges

53

7

53

14

Long-lived asset impairment charges

17

17

Operating loss

(173)

(217)

(110)

(390)

(172)

Non-operating expense (income):

Interest expense

146

156

93

302

160

Interest income

(12)

(2)

(6)

(14)

(9)

Loss on early extinguishment of debt, net

64

20

84

Loss on convertible notes derivatives, net

48

499

Gain on previously held equity investment

(146)

(146)

Other, net

(18)

16

2

(2)

10

Total non-operating expense (income)

180

190

(9)

370

514

Loss from continuing operations before income tax benefit and equity in (loss) earnings of equity method investments

(353)

(407)

(101)

(760)

(686)

Income tax benefit

(105)

(106)

(27)

(211)

(10)

Loss from continuing operations before equity in (loss) earnings of equity method investments

(248)

(301)

(74)

(549)

(676)

Equity in (loss) earnings of equity method investments, net of tax

(8)

(4)

9

(12)

10

Loss from continuing operations

(256)

(305)

(65)

(561)

(666)

(Loss) income from discontinued operations, net of tax

(119)

14

(119)

(1)

Net loss

(256)

(424)

(51)

(680)

(667)

Net loss attributable to noncontrolling interests and redeemable noncontrolling interests

(7)

52

10

45

12

Net loss attributable to SunEdison stockholders

$

(263)

$

(372)

$

(41)

$

(635)

$

(655)

Amounts attributable to SunEdison stockholders:

Loss from continuing operations

$

(263)

$

(251)

$

(55)

$

(514)

$

(654)

Loss (income) from discontinued operations

(121)

14

(121)

(1)

Net loss attributable to SunEdison stockholders

$

(263)

$

(372)

$

(41)

$

(635)

$

(655)

Basic (loss) earnings per share:

Continuing operations [*]

$

(0.93)

$

(0.92)

$

(0.21)

$

(1.81)

$

(2.46)

Discontinued operations

(0.44)

0.05

(0.43)

Total basic loss per share [*]

$

(0.93)

$

(1.36)

$

(0.16)

$

(2.24)

$

(2.46)

Diluted (loss) earnings per share:

Continuing operations [*]

$

(0.93)

$

(0.92)

$

(0.21)

$

(1.81)

$

(2.46)

Discontinued operations

(0.44)

0.05

(0.43)

Total diluted loss per share [*]

$

(0.93)

$

(1.36)

$

(0.16)

$

(2.24)

$

(2.46)

Weighted-average shares used in computing basic loss per share

284

273

268

284

268

Weighted-average shares used in computing diluted loss per share

284

273

268

284

268

[*] For the six months ended June 30, 2014, the numerator of the EPS calculation was reduced by $3 million for the holder's share of the net income of the subsidiaries as a result of a share sale agreement entered into with the noncontrolling interest holder.

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

June 30,  2015

December 31, 2014

Assets

Current assets:

Cash and cash equivalents

$

1,294

$

856

Cash committed for construction projects

704

131

Current portion of restricted cash

291

156

Accounts receivable, net

361

373

Prepaid and other current assets

954

909

Current assets of discontinued operations

365

Total current assets

3,604

2,790

Investments

332

149

Property, plant and equipment, net:

Renewable energy systems

9,250

5,336

Other property, plant and equipment

1,214

1,140

Restricted cash

121

115

Goodwill

425

73

Other intangible assets

1,713

586

Other assets

898

626

Non-current assets of discontinued operations

685

Total assets

$

17,557

$

11,500

Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity

Current liabilities:

Current portion of long-term debt and short-term borrowings

$

1,551

$

1,078

Accounts payable

852

1,098

Accrued and other current liabilities

930

660

Current portion of deferred revenue

77

92

Current portion of contingent consideration liabilities

446

26

Current liabilities of discontinued operations

192

Total current liabilities

3,856

3,146

Long-term debt, less current portion

9,171

5,915

Deferred revenue, less current portion

601

204

Contingent consideration liabilities, less current portion

85

17

Other liabilities

536

442

Non-current liabilities of discontinued operations

291

Total liabilities

14,249

10,015

Redeemable noncontrolling interests

39

Stockholders' equity:

Common stock

3

3

Additional paid-in capital

2,721

1,698

Accumulated deficit

(1,983)

(1,348)

Accumulated other comprehensive loss

(34)

(111)

Treasury stock

(75)

(9)

Total SunEdison stockholders' equity

632

233

Noncontrolling interests

2,637

1,252

Total stockholders' equity

3,269

1,485

Total liabilities, redeemable noncontrolling interests and stockholders' equity

$

17,557

$

11,500

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Three Months Ended,

Six Months Ended,

June 30, 2015

March 31, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Cash flows from operating activities:

Net loss

$

(256)

$

(424)

$

(51)

$

(680)

$

(667)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

122

84

92

206

154

Stock-based compensation

18

19

6

37

14

Deferred tax benefit

(122)

(97)

(39)

(219)

(42)

Deferred revenue

(24)

(15)

(90)

(39)

(140)

Restructuring charges

53

53

Long-lived asset impairment charges

17

17

Loss on sale of equity interest in SSL

123

123

Loss on convertible notes derivatives, net

48

499

Loss on early extinguishment of debt, net

64

20

84

Gain on previously held equity investment

(146)

(146)

Other non-cash

9

12

11

21

13

Changes in operating assets and liabilities:

Accounts receivable

14

82

(10)

96

43

Prepaid and other current assets

(109)

(33)

(72)

(142)

(104)

Accounts payable

(249)

(131)

8

(380)

(106)

Deferred revenue for renewable energy systems

18

18

101

36

159

Accrued liabilities

112

13

6

125

38

Other assets and liabilities

(235)

(32)

57

(267)

(9)

Net cash used in operating activities

(621)

(308)

(79)

(929)

(294)

Cash flows from investing activities:

Capital expenditures

(65)

(62)

(75)

(127)

(95)

Construction of renewable energy systems

(525)

(344)

(325)

(869)

(652)

Proceeds from sale of equity interest in SSL

188

188

Purchases of cost and equity method investments, net of proceeds

(13)

(10)

(30)

(23)

(47)

Change in restricted cash

(84)

29

(34)

(55)

(49)

Change in cash committed for construction projects

(574)

(2)

2

(576)

83

Cash paid for acquisitions, net of cash acquired

(651)

(1,530)

(242)

(2,181)

(256)

Other

4

(31)

(27)

Net cash used in investing activities

(1,908)

(1,762)

(704)

(3,670)

(1,016)

Cash flows from financing activities:

Proceeds from short-term and long-term debt

2,874

2,386

1,438

5,260

1,899

Principal payments on short-term and long-term debt

(918)

(619)

(253)

(1,537)

(274)

Payments for capped call option

(123)

(38)

(161)

Proceeds from (payments for) note hedge

635

(174)

635

(174)

(Payments for) proceeds from warrant transactions

(632)

124

(632)

124

Proceeds from TerraForm equity offerings

667

391

1,058

Proceeds from SSL IPO and private placement transactions

185

185

Common stock issued and repurchased

2

4

3

6

3

Contributions from noncontrolling interests, net

665

4

14

669

24

Cash paid for contingent consideration for acquisitions

(9)

(9)

(2)

Debt financing fees

(112)

(67)

(60)

(179)

(91)

Dividends paid by TerraForm Power

(17)

(17)

(34)

Other

(6)

(55)

(6)

(61)

(4)

Net cash provided by financing activities

3,035

1,980

1,271

5,015

1,690

Effect of exchange rate changes on cash and cash equivalents

(1)

(2)

3

(3)

1

Net increase in cash and cash equivalents

505

(92)

491

413

381

Cash (used in) provided by discontinued operations

(25)

78

(25)

75

Net change in cash and cash equivalents from continuing operations

505

(67)

413

438

306

Cash and cash equivalents at beginning of period

789

856

426

856

533

Cash and cash equivalents at end of period

$

1,294

$

789

$

839

$

1,294

$

839

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

(In millions)

SUMMARY OF CONSOLIDATED DEBT OUTSTANDING

Weighted Average Annual Interest Rate

June 30,  2015

December 31,  2014

Renewable Energy Development segment debt:

Convertible senior notes due 2018, net of discount

2.00%

$

249

$

485

Convertible senior notes due 2020, net of discount

0.25%

445

432

Convertible senior notes due 2021, net of discount

2.75%

220

429

Convertible senior notes due 2022, net of discount

2.38%

338

Convertible senior notes due 2023, net of discount

2.63%

303

Convertible senior notes due 2025, net of discount

3.38%

281

System pre-construction, construction and term debt

12.00%

8

8

Financing leaseback obligations

—%

32

Other credit facilities

2.71%

266

215

Total recourse to SunEdison, Inc.

2,110

1,601

Warehouse 1.0 term loan

6.25%

466

TerraForm Private warehouse term loan

5.75%

280

Margin loan due 2017

6.25%

410

Exchangeable notes due 2020

3.75%

328

Acquisition facility

9.00%

460

150

SMP Ltd. credit facilities

5.40%

370

355

System pre-construction, construction and term debt

5.87%

2,335

1,760

Financing leaseback obligations

4.59%

1,461

1,372

Other credit facilities

2.65%

236

157

Total non-recourse to SunEdison, Inc.

6,346

3,794

Total Renewable Energy Development segment debt

$

8,456

$

5,395

TerraForm Power segment debt(a):

Senior notes due 2023, net of discount

5.88%

$

947

$

Term loan facility

5.33%

574

Total recourse to TerraForm Power, Inc.

947

574

Other system financing transactions

4.78%

1,320

1,024

Total non-recourse to TerraForm Power, Inc.

1,320

1,024

Total TerraForm Power segment debt

$

2,267

$

1,598

Total debt outstanding

$

10,723

$

6,993

(a) Non-recourse to SunEdison

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

(In millions)

Supplemental Revenue Schedule

Three Months Ended,

June 30,  2015

March 31,  2015

June 30,  2014

Previously deferred GAAP revenue recognized due to the expiration of guarantees related to the sale of renewable energy systems(1)

$

1

$

11

$

17

Revenue from our sale-leaseback transactions accounted for as financings(2)

22

13

22

(1) On certain direct sales of renewable energy systems we are required to defer profit up to the amount of our maximum exposure for power warranties, system uptime guarantees and breach of contract provisions offered to the direct sale customers, as these contract provisions are considered continuing involvement by us in the sold renewable energy systems. This revenue is not recognized in the period in which the sale occurred under GAAP real estate accounting rules because the renewable energy systems are considered integral to the real estate on which they were built. Absent real estate accounting requirements, deferred revenues related to continuing involvement would be recognized under GAAP during the reporting period because we have historically experienced minimal losses related to these guarantees.

(2) For our sale-leaseback transactions accounted for as financings, we received cash at the transaction date for the legal sale of the solar energy system to the purchaser that was not recognized as revenue under GAAP real estate accounting rules due to the system being considered integral to the land or building on which it resides and because we have continuing involvement with the system through a purchase option. Instead, revenue from our sale-leaseback transactions is recognized through the sale of electricity and energy credits which are generated as energy is produced. Upon termination of the related lease through the non-cash extinguishment of the debt offset by any remaining net book value of the solar energy system asset, we will recognize a system development margin equal to the difference between (a) the cash proceeds from our financing partners in sale-leaseback transactions considered financings and (b) our total costs to construct the solar energy systems sold under the sale-leaseback transactions.

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR THE RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power

Consolidating Adjustments

Net sales

$

455

$

329

$

130

$

(4)

(1)

Cost of goods sold

352

286

70

(4)

(1)

Gross profit

103

43

60

Operating expenses:

Marketing and administration

259

239

20

Long-lived asset impairment charges

17

17

Operating (loss) income

(173)

(213)

40

Non-operating expense (income):

Interest expense

146

110

36

Interest income

(12)

(12)

Loss (gain) on early extinguishment of debt

64

75

(11)

Other, net

(18)

(3)

(15)

Total non-operating expense (income)

180

170

10

Loss from continuing operations before income tax (benefit) expense and equity in (loss) earnings of equity method investments

(353)

(383)

30

Income tax (benefit) expense

(105)

(106)

1

Loss from continuing operations before equity in loss of equity method investments

(248)

(277)

29

Equity in loss of equity method investments, net of tax

(8)

(8)

Loss from continuing operations

(256)

(285)

29

(Loss) income from discontinued operations, net of tax

Net loss

(256)

(285)

29

Net loss (income) attributable to noncontrolling interests and redeemable noncontrolling interests

(7)

4

(11)

Net loss attributable to SunEdison stockholders

$

(263)

$

(281)

$

18

$

(1) Adjustment represents the elimination of net sales, cost of goods sold and intercompany profit in inventory related to intercompany sales transactions.

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR THE RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power

Consolidating Adjustments

Net sales

$

323

$

262

$

71

$

(10)

(1)

Cost of goods sold

289

243

56

(10)

(1)

Gross profit

34

19

15

Operating expenses:

Marketing and administration

198

171

27

Restructuring charges

53

53

Operating loss

(217)

(205)

(12)

Non-operating expense (income):

Interest expense

156

119

37

Interest income

(2)

(2)

Loss on early extinguishment of debt, net

20

20

Other, net

16

1

15

Total non-operating expense (income)

190

118

72

Loss from continuing operations before income tax benefit and equity in loss of equity method investments

(407)

(323)

(84)

Income tax benefit

(106)

(106)

Loss from continuing operations before equity in loss of equity method investments

(301)

(217)

(84)

Equity in loss of equity method investments, net of tax

(4)

(4)

Loss from continuing operations

(305)

(221)

(84)

(Loss) income from discontinued operations, net of tax

(119)

(119)

(2)

Net loss

(424)

(221)

(84)

(119)

Net loss (income) attributable to noncontrolling interests and redeemable noncontrolling interests

52

(2)

56

(2)

(3)

Net loss attributable to SunEdison stockholders

$

(372)

$

(223)

$

(28)

$

(121)

(1) Adjustment represents the elimination of net sales, cost of goods sold and intercompany profit in inventory related to intercompany sales transactions.

(2) Adjustment represents $4 million in net income from SunEdison Semiconductor Ltd. prior to the disposal of our controlling interest on January 20, 2015 offset by a loss on disposal of $123 million.

(3) Adjustments represents $2 million in net income attributable to noncontrolling interests in SunEdison Semiconductor Ltd. prior to the disposal of our controlling interest on January 20, 2015.

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR THE RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power

Consolidating Adjustments

Net sales

$

431

$

427

$

22

$

(18)

(1)

Cost of goods sold

426

437

7

(18)

(1)

Gross profit

5

(10)

15

Operating expenses:

Marketing and administration

108

101

7

Restructuring charges

7

7

Operating (loss) income

(110)

(118)

8

Non-operating expense (income):

Interest expense

93

69

24

Interest income

(6)

(6)

Loss on convertible notes derivatives, net

48

48

Gain on previously held equity investment

(146)

(146)

Other, net

2

2

Total non-operating expense (income)

(9)

(35)

26

Loss from continuing operations before income tax benefit and equity in (loss) earnings of equity method investments

(101)

(83)

(18)

Income tax benefit

(27)

(22)

(5)

Loss from continuing operations before equity in loss of equity method investments

(74)

(61)

(13)

Equity in income of equity method investments, net of tax

9

9

Loss from continuing operations

(65)

(52)

(13)

Income from discontinued operations, net of tax

14

14

(2)

Net loss

(51)

(52)

(13)

14

Net loss attributable to noncontrolling interests

10

11

(1)

Net loss attributable to SunEdison stockholders

$

(41)

$

(41)

$

(14)

$

14

(1) Adjustment represents the elimination of net sales, cost of goods sold and intercompany profit in inventory related to intercompany sales transactions.

(2) Adjustment represents $14 million in net income from SunEdison Semiconductor Ltd.

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR THE RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power

Consolidating Adjustments

Net sales

$

778

$

591

$

201

$

(14)

(1)

Cost of goods sold

641

529

126

(14)

(1)

Gross profit

137

62

75

Operating expenses:

Marketing and administration

457

410

47

Restructuring charges

53

53

Long-lived asset impairment charges

17

17

Operating (loss) income

(390)

(418)

28

Non-operating expense (income):

Interest expense

302

229

73

Interest income

(14)

(14)

Loss on early extinguishment of debt, net

84

75

9

Other, net

(2)

(2)

Total non-operating expense (income)

370

288

82

Loss from continuing operations before income tax (benefit) expense and equity in loss of equity method investments

(760)

(706)

(54)

Income tax (benefit) expense

(211)

(212)

1

Loss from continuing operations before equity in loss of equity method investments

(549)

(494)

(55)

Equity in loss of equity method investments, net of tax

(12)

(12)

Loss from continuing operations

(561)

(506)

(55)

(Loss) income from discontinued operations, net of tax

(119)

(119)

(2)

Net loss

(680)

(506)

(55)

(119)

Net loss (income) attributable to noncontrolling interests and redeemable noncontrolling interests

45

2

45

(2)

(3)

Net loss attributable to SunEdison stockholders

$

(635)

$

(504)

$

(10)

$

(121)

(1) Adjustment represents the elimination of net sales, cost of goods sold and intercompany profit in inventory related to intercompany sales transactions.

(2) Adjustment represents $4 million in net income from SunEdison Semiconductor Ltd. prior to the disposal of our controlling interest on January 20, 2015 offset by a loss on disposal of $123 million.

(3) Adjustments represents $2 million in net income attributable to noncontrolling interests in SunEdison Semiconductor Ltd. prior to the disposal of our controlling interest on January 20, 2015.

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR THE RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power

Consolidating Adjustments

Net sales

$

771

$

773

$

30

$

(32)

(1)

Cost of goods sold

728

749

11

(32)

(1)

Gross profit

43

24

19

Operating expenses:

Marketing and administration

201

192

9

Restructuring charges

14

14

Operating (loss) income

(172)

(182)

10

Non-operating expense (income):

Interest expense

160

129

31

Interest income

(9)

(9)

Loss on convertible notes derivatives, net

499

499

Gain on previously held equity investment

(146)

(146)

Other, net

10

7

3

Total non-operating expense (income)

514

480

34

Loss from continuing operations before income tax benefit and equity in earnings of equity method investments

(686)

(662)

(24)

Income tax benefit

(10)

(3)

(7)

Loss from continuing operations before equity in earnings of equity method investments

(676)

(659)

(17)

Equity in earnings of equity method investments, net of tax

10

10

Loss from continuing operations

(666)

(649)

(17)

(Loss) income from discontinued operations, net of tax

(1)

(1)

(2)

Net loss

(667)

(649)

(17)

(1)

Net loss (income) attributable to noncontrolling interests

12

2

(1)

1

(3)

Net loss attributable to SunEdison stockholders

$

(655)

$

(647)

$

(18)

$

(1) Adjustment represents the elimination of net sales, cost of goods sold and intercompany profit in inventory related to intercompany sales transactions.

(2) Adjustment represents $1 million in net loss from SunEdison Semiconductor Ltd.

(3) Adjustments represents $1 million in net loss attributable to noncontrolling interests in SunEdison Semiconductor Ltd.

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR CASH FLOW

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power (1)

Discontinued Operations

Consolidating Adjustments

Cash flows from operating activities:

Net loss

$

(680)

$

(506)

$

(55)

$

(119)

$

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

206

109

87

10

Stock-based compensation

37

29

7

1

Deferred tax benefit

(219)

(220)

1

Deferred revenue

(39)

(38)

(1)

Long-lived asset impairment charges

17

17

Restructuring charges

53

53

Loss on sale of equity interest in SSL

123

123

Loss on early extinguishment of debt

84

75

9

Other non-cash

21

19

2

Changes in operating assets and liabilities

(532)

(501)

(15)

(16)

Net cash used in operating activities

(929)

(963)

35

(1)

Cash flows from investing activities:

Capital expenditures

(127)

(112)

(1)

(14)

Construction of renewable energy systems

(869)

(862)

(350)

343

Contribution of renewable energy systems

343

(343)

Proceeds from sale of equity interest in SSL

188

188

Purchases of cost and equity method investments

(23)

(23)

Change in restricted cash

(55)

(59)

4

Change in cash committed for construction projects

(576)

(576)

Cash paid for acquisitions, net of cash acquired

(2,181)

(1,176)

(1,005)

Change in intercompany note balances

15

(15)

Other

(27)

(8)

(10)

(9)

Net cash used in investing activities

(3,670)

(2,270)

(1,377)

(23)

Cash flows from financing activities:

Proceeds from short-term and long-term debt

5,260

3,803

1,457

Principal payments on short-term and long-term debt

(1,537)

(595)

(942)

Payments for capped call option

(161)

(161)

Proceeds from (payments for) note hedge

635

635

(Payments for) proceeds from warrant transactions

(632)

(632)

Proceeds from TerraForm equity offerings

1,058

136

922

Net parent investment and other intercompany financing activity

53

(53)

Common stock issued and repurchased

6

6

Contributions from noncontrolling interests, net

669

641

28

Cash paid for contingent consideration for acquisitions

(9)

(9)

Debt financing fees

(179)

(137)

(42)

Dividends (paid by) received from TerraForm Power,

(34)

17

(51)

Other

(61)

(6)

(55)

Net cash provided by financing activities

5,015

3,751

1,264

Effect of exchange rate changes on cash and cash equivalents

(3)

(2)

(1)

Net decrease in cash and cash equivalents

413

516

(78)

(25)

Cash used by discontinued operations

(25)

(25)

Net change in cash and cash equivalents from continuing operations

438

516

(78)

Cash and cash equivalents at beginning of period

856

388

468

Cash and cash equivalents at end of period

$

1,294

$

904

$

390

(1) TerraForm Power reflects amounts that have been recast for activity associated with assets and liabilities contributed by SunEdison in accordance with rules applicable to transactions between entities under common control.

 

 

SUNEDISON, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION FOR CASH FLOW

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(In millions)

Supplemental Consolidating Data

Consolidated

Renewable Energy Development

TerraForm Power (1)

Discontinued Operations

Consolidating Adjustments

Cash flows from operating activities:

Net loss

$

(667)

$

(649)

$

(17)

$

(1)

$

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization

154

73

23

58

Stock-based compensation

14

10

4

Deferred tax benefit

(42)

(4)

(7)

(31)

Deferred revenue

(140)

(140)

Loss on convertible notes derivatives, net

499

499

Gain on previously held equity investment

(146)

(146)

Other non-cash

13

13

Changes in operating assets and liabilities

21

118

13

(110)

Net cash (used in) provided by operating activities

(294)

(226)

12

(80)

Cash flows from investing activities:

Capital expenditures

(95)

(53)

(42)

Construction of renewable energy systems

(652)

(600)

(524)

472

Contribution of renewable energy systems

472

(472)

Purchases of cost and equity method investments

(47)

(47)

Change in restricted cash

(49)

(58)

9

Change in cash committed for construction projects

83

83

Cash paid for acquisitions, net of cash acquired

(256)

(65)

(191)

Change in intercompany note balances

(6)

3

3

Other

Net cash used in investing activities

(1,016)

(274)

(703)

(39)

Cash flows from financing activities:

Proceeds from short-term and long-term debt

1,899

1,137

552

210

Principal payments on short-term and long-term debt

(274)

(220)

(43)

(11)

Payments for capped call option

Payments for note hedge

(174)

(174)

Proceeds from warrant transactions

124

124

Proceeds from SSL IPO and private placement transactions

185

185

Net parent investment and other intercompany financing activity

(39)

218

(179)

Common stock issued and repurchased

3

(183)

186

Contributions from noncontrolling interests

24

22

2

Cash paid for contingent consideration for acquisitions

(2)

(2)

Debt financing fees

(91)

(56)

(23)

(12)

Other

(4)

(4)

Net cash provided by (used in) financing activities

1,690

790

706

194

Effect of exchange rate changes on cash and cash equivalents

1

1

Net increase in cash and cash equivalents

381

291

15

75

Cash provided by discontinued operations

75

75

Net change in cash and cash equivalents from continuing operations

306

291

15

Cash and cash equivalents at beginning of period

533

532

1

Cash and cash equivalents at end of period

$

839

$

823

$

16

(1) TerraForm Power reflects amounts that have been recast for activity associated with assets and liabilities contributed by SunEdison in accordance with rules applicable to transactions between entities under common control.

Supplemental Definitions

Adjusted EBITDA: A supplemental non-GAAP financial measure which eliminates the impact on net income of certain unusual or non-recurring items and other factors that we do not consider indicative of future operating performance. This measurement, which is used by TerraForm Power, Inc., is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income. The presentation of Adjusted EBITDA should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities. In addition, Adjusted EBITDA is used by our management for internal planning purposes and for analysis of performance. See the detailed definition and reconciliation of this TerraForm Power non-GAAP measure in the press release issued by TerraForm Power today and furnished by TerraForm Power in a Form 8-K.

Gross Annualized Unlevered CAFD: 12 months of post-completion project operating cash flow, calculated as project revenue, inclusive of cash received directly or indirectly due to governmental incentive programs (including but not limited to feed-in-tariffs, and sale or allocation of solar renewable energy credits, production tax credits, etc.), less project operating expenses but prior to interest payments for project level debt and payments to tax equity investors.  Gross Annualized Unlevered CAFD is an operational measure that is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income, net cash provided by (used in) operating activities or any other liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs.  We believe Gross Annualized Unlevered CAFD is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance. In addition, Gross Annualized Unlevered CAFD is used by our management team for internal planning purposes and for analysis of performance.

Backlog: A project that qualifies for pipeline that has an associated executed PPA, other executed off-take agreement, such as a feed-in-tariff, or an un-executed, alternative energy off-take agreement (i.e. hedge) in advanced stages of negotiation and in a liquid market where the off-take agreement is readily available.

Cash Available for Distribution (CAFD): net cash provided by operating activities as adjusted for certain other cash flow items that we associate with our operations.  CAFD is a supplemental non-GAAP measure used by TerraForm Power, Inc. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income, net cash provided by (used in) operating activities or any other liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs. We believe cash available for distribution is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance. In addition, cash available for distribution is used by our management team for internal planning purposes and for analysis of performance.  See the detailed definition and reconciliation of this TerraForm Power non-GAAP measure in the press release issued by TerraForm Power today and furnished by TerraForm Power in a Form 8-K.

Delivered MW: The aggregate of Retained MW and 3rd Party Sales MW for the period.

Lead: An early stage project for which a potential customer or offtake has been identified.

MW: All references to watts (e.g., Megawatts, Gigawatts, MW, GW, etc.) refer to measurements of direct current, or "DC," with respect to solar generation assets, and measurements of alternating current, or "AC," with respect to wind generation assets. Represents the nameplate production capacity.  Nameplate capacity for solar projects represents the maximum generating capacity at standard test conditions of a facility.  Nameplate capacity for wind facilities represents the manufacturer's maximum nameplate generating capacity of each turbine multiplied by the number of turbines at a facility.

Pipeline: A project with either a signed or awarded PPA or other energy offtake agreement or that has achieved each of the following three items: a) site control, b) an identified interconnection point with an estimate of the interconnection costs, and c) a determination that there is a reasonable likelihood that an energy offtake agreement will be signed.

Qualified Lead: A project with an identified customer or offtake and more clearly identified characteristics including but not limited to governmental program qualification and interconnection point.

Retained MW: Represents the number of MW for completed projects and percentage of completion for projects under construction during that period that are associated with the expected receipt of ongoing cash flow due to control or contract with SunEdison, a subsidiary, or affiliate.

Retained Annualized Unlevered CAFD:  Gross Annualized Unlevered CAFD associated with Retained MW.  Retained Annualized Unlevered CAFD is an operational measure that is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income, net cash provided by (used in) operating activities or any other liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs.  We believe Retained Annualized Unlevered CAFD is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance. In addition, Retained Annualized Unlevered CAFD is used by our management team for internal planning purposes and for analysis of performance.

TERP Drops: Represents the number of MW for completed and operational projects that were dropped down to TerraForm during the period.

3rd Party Sales MW: Represents the number of MW for completed projects and percentage of completion for projects under construction during the period that will be sold to third parties. Also included are cash sales through channel partners including installations, kits, modules, solar water pumps, and other residential and small commercial equipment and system sales.

Under Construction: A project within pipeline and backlog, in various stages of completion, which is not yet operational.

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SOURCE SunEdison, Inc.



RELATED LINKS

http://www.sunedison.com