Trina Solar Announces Receipt of Favorable Arbitration Award and Adjusts Fourth Quarter and Full Year 2013 Earnings Results

News provided by

Trina Solar Limited

Mar 20, 2014, 07:00 ET

CHANGZHOU, China, March 20, 2014 /PRNewswire/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV") modules, solutions, and services, today announced it has received US$20.4 million from a customer in an arbitration settlement involving an outstanding account balance under a solar module purchase agreement. The arbitration panel determined that Trina Solar was entitled to US$20.4 million, which included the full amount of the outstanding accounts receivable of US$17.4 million sought by the Company, plus sales tax and accrued interests.

Ms. Teresa Tan, CFO of Trina Solar, said, "We are pleased to see that our efforts to pursue outstanding accounts receivable in overseas markets are delivering positive results. Sound financial management is a key focus for Trina Solar. We remain strongly committed to maintaining a healthy balance sheet to support Trina's long-term growth."

The arbitration fund was received subsequent to the Company's fourth quarter and full year 2013 earnings results. As a result, the accounts receivable provision of US$5.7 million for bad debt previously accrued has been reversed in the fourth quarter of 2013. Consequently, related financial numbers previously stated in the Company's fourth quarter and full year 2013 earnings release are being adjusted to reflect this event.

For a comparison of the difference in the financial numbers, please refer to the tables below. To access the Company's full adjusted financial results for the fourth quarter and full year 2013, please refer to the full income statements and balance sheets attached at the end of this press release.

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Operations

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

For the Three Months Ended 
Dec. 31, 2013

For Year Ended
Dec. 31, 2013

Line Items

Adjusted

Previous

Adjusted

Previous

General and administrative expenses

19,741

25,445

103,523

109,228

Total operating expenses

59,314

65,018

256,273

261,978

Operating income (loss)

19,807

14,103

(38,079)

(43,784)

Income (loss) before income taxes

14,124

8,420

(85,266)

(90,971)

Net income (loss)

15,258

9,554

(72,236)

(77,940)

Net income (loss) attributable to Trina Solar Limited

15,464

9,760

(72,026)

(77,730)

Earnings (loss) per ADS

Basic

Diluted

0.22

0.21

0.14

0.13

(1.01)

(1.01)

(1.09)

(1.09)

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Comprehensive Income

(US dollars in thousands)

For the Three Months Ended
Dec. 31, 2013

For Year Ended
Dec. 31, 2013

Line Items

Adjusted

Previous

Adjusted

Previous

Net income (loss)

15,258

9,554

(72,236)

(77,940)

Comprehensive income (loss)

18,114

12,410

(66,039)

(71,743)

Comprehensive income (loss) attributable to Trina Solar Limited

18,321

12,617

(65,830)

(71,534)

Trina Solar Limited

Unaudited Condensed Consolidated Balance Sheets Dec. 31, 2013

(US dollars in thousands)


Line Items

Adjusted

Previous

Accounts receivable, net

435,092

429,387

Total Currents assets

1,521,701

1,515,996

TOTAL ASSETS

2,567,229

2,561,525

Retained earnings

143,369

137,665

Total Trina Solar Limited shareholder's equity

822,196

816,492

Total equity

822,479

816,775

TOTAL LIABILITIES AND EQUITY

2,567,229

2,561,525

About Trina Solar Limited

Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company's industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.

Safe Harbor Statement

This announcement 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 announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the Company's ability to operate as a public company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

For further information, please contact: 

Trina Solar Limited
Teresa Tan, CFO
Phone: + (86) 519-8517-6823 (Changzhou)

Brunswick Group
Ilse Schache

Phone: + (86) 21-6039-6388 (Shanghai)

Email: [email protected]



Yvonne Young
Head of Investor Relations
Phone: + (86) 519-8517-6878 (Changzhou)
Email: [email protected]


Trina Solar Limited

Unaudited Condensed Consolidated Statements of Operations

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

For the Three Months Ended

For Year Ended











Dec. 31, 
2013

Sep. 30, 
2013

Dec. 31, 

2012 

Dec. 31, 
2013

Dec. 31, 
2012 









Net revenues

$ 525,638

$ 548,386

$ 302,746

$1,774,971

$1,296,655

Cost of revenues

446,517

464,955

297,112

1,556,777

1,239,412

Gross profit

79,121

83,431

5,634

218,194

57,243

Operating expenses









Selling expenses

33,566

37,511

30,350

132,823

118,885

General and administrative expenses

19,741

35,527

40,320

103,523

176,719

Research and development expenses

6,007

4,360

5,392

19,926

26,511

Total operating expenses

59,314

77,398

76,062

256,273

322,115

Operating income (loss)

19,807

6,033

(70,428)

(38,079)

(264,872)

Foreign exchange gain (loss)

1,064

8,050

2,582

(13,576)

908

Interest expenses

(8,975)

(13,355)

(12,682)

(48,445)

(51,887)

Interest income

770

1,335

1,244

3,958

8,552

Gain (loss) on change in fair value of derivative

729

(79)

2,153

2,180

8,542

Other income, net

729

2,995

1,209

8,696

6,797

Income (loss) before income taxes

14,124

4,979

(75,922)

(85,266)

(291,960)

Income tax benefit (expense)

1,134

4,918

(11,256)

13,030

25,405

Net income (loss) 

15,258

9,897

(87,178)

(72,236)

(266,555)

Loss attributable to the noncontrolling interests

206

4

-

210

-

Net income (loss) attributable to Trina Solar Limited

$ 15,464

$ 9,901

$ (87,178)

$ (72,026)

$ (266,555)









Earnings (loss) per ADS* 









Basic

$ 0.22

$ 0.14

$ (1.23)

$ (1.01)

$ (3.77)

Diluted

$ 0.21

$ 0.14

$ (1.23)

$ (1.01)

$ (3.77)

Weighted average ADS outstanding*









Basic

71,064,192

71,017,284

70,772,050

71,071,055

70,696,594

Diluted

72,526,455

71,757,097

70,772,050

71,071,055

70,696,594









* "ADS" refers to any of our American depository shares, each representing 50 ordinary shares.












Trina Solar Limited

                                                  Unaudited Condensed Consolidated Statements of Comprehensive Income

(US dollars in thousands)











For the Three Months Ended

For Year Ended





Dec. 31, 

2013

Sep. 30, 

2013

Dec. 31, 

2012 

Dec. 31, 

2013

Dec. 31, 

2012 









Net income (loss) 

$ 15,258

$ 9,897

$ (87,178)

(72,236)

(266,555)

Other comprehensive income (loss):









       Foreign currency translation adjustments

2,856

(1,021)

(877)

6,197

(2,985)

Comprehensive income (loss) 

18,114

8,876

(88,055)

(66,039)

(269,540)

       Comprehensive loss attributable to non-controlling interests

207

4

-

209

-

Comprehensive income (loss) attributable to Trina Solar Limited

$ 18,321

$ 8,880

$ (88,055)

$ (65,830)

$ (269,540)

Trina Solar Limited

Unaudited Condensed Consolidated Balance Sheets

(US dollars in thousands)


Dec. 31,

Sep. 30,

Dec. 31,


2013

2013

2012







ASSETS







Current assets:







Cash and cash equivalents


$        486,686

$     448,602

$        807,276

Restricted cash


74,720

109,180

110,920

Inventories


244,532

278,124

318,504

Project assets, current portion


73,305

58,948

7,960

Accounts receivable, net


435,092

603,009

390,157

Current portion of advances to suppliers, net

68,253

65,518

57,846

Prepaid expenses and other current assets, net

139,113

98,455

72,824

Total current assets


1,521,701

1,661,836

1,765,487

Property, plant and equipment, net


889,752

838,841

893,340

Project assets, net of current portion


6,097

10,271

23,398

Land use rights, net


43,287

43,451

41,961

Advances to suppliers, net of current portion

41,908

69,405

86,993

Investment in equity affiliates


11,770

12,899

10,961

Deferred income tax assets, net


50,901

62,411

41,048

Other noncurrent assets


1,813

1,364

1,669

TOTAL ASSETS


$     2,567,229

$  2,700,478

$     2,864,857







LIABILITIES AND EQUITY







Current liabilities:







     Short-term borrowings, including current portion of
     long-term borrowings

$        935,590

$     965,569

$        875,821

  Accounts payable


476,533

573,744

428,626

  Convertible senior notes


-

-

83,582

  Accrued expenses and other current liabilities

128,420

122,316

91,126

Total current liabilities


1,540,543

1,661,629

1,479,155

Long-term bank borrowings, excluding current portion

100,502

136,136

415,150

Accrued warranty costs


81,743

76,924

65,780

Other noncurrent liabilities


21,962

23,765

22,987

Total liabilities


1,744,750

1,898,454

1,983,072







Ordinary shares


36

40

40

Additional paid-in capital


663,388

661,304

656,944

Retained earnings


143,369

127,905

215,395

Accumulated other comprehensive income

15,403

12,546

9,206

Total Trina Solar Limited shareholders' equity

822,196

801,795

881,585

Non-controlling interests


283

229

200

Total equity


822,479

802,024

881,785

TOTAL LIABILITIES AND EQUITY


$     2,567,229

$  2,700,478

$     2,864,857

SOURCE Trina Solar Limited