GUELPH, Ontario, May 16, 2018 /PRNewswire/ -- Canadian Solar Inc.
("Canadian Solar" or the "Company") (NASDAQ: CSIQ), one of the
world's largest solar power companies, today announced its
financial results for the first quarter of 2018 ended March 31, 2018.
First Quarter 2018 Highlights
- Total solar module shipments were 1,374 MW, compared to 1,831
MW in the fourth quarter of 2017, and first quarter 2018 guidance
in the range of 1.30 GW to 1.35 GW.
- Net revenue was $1.42 billion,
compared to $1.11 billion in the
fourth quarter of 2017, and first quarter 2018 guidance in the
range of $1.37 billion to
$1.40 billion.
- Net revenue from the total solutions business as a percentage
of total net revenue was 64.2% compared to 36.4% in the fourth
quarter of 2017.
- Gross margin was 10.1%, compared to 19.7% in the fourth quarter
of 2017, and first quarter 2018 guidance in the range of 10.0% to
12.0%.
- Net income attributable to Canadian Solar was $43.4 million, or $0.72 per diluted share, compared to net income
of $61.4 million, or $1.01 per diluted share, in the fourth quarter of
2017.
- Cash, cash equivalents and restricted cash balances at the end
of the quarter totaled $1.19 billion,
compared to $1.19 billion at the end
of the fourth quarter of 2017.
- Net cash provided by operating activities was approximately
$253.4 million, compared to net cash
provided by operating activities of $189.3
million in the fourth quarter of 2017.
- During the quarter, the Company completed the sale of three
solar power plants in the U.S. totaling 309 MWp to the Korea
Electric Power Corporation ("KEPCO") for approximately $720.0 million and completed the sale of 142 MWp
of solar power plants in the UK for approximately GBP 191.2 million ($267.7
million) to Greencoat Capital LLP ("Greencoat").
- The Company's portfolio of utility-scale solar power plants in
operation as of April 30, 2018 was
approximately 948 MWp with an estimated total resale value of
approximately $1.1 billion. Only the
class B share value of the Company's tax equity deal projects in
the U.S. is included in this resale value.
First Quarter 2018 Results
Net revenue in the first quarter of 2018 was $1.42 billion, up 28.5% from $1.11 billion in the fourth quarter of 2017 and
up 110.5% from $677.0 million in the
first quarter of 2017. Solar module shipments in the first quarter
of 2018 were 1,374 MW, compared to 1,831 MW in the fourth quarter
of 2017, and first quarter 2018 guidance in the range of 1.30 GW to
1.35 GW.
Gross profit in the first quarter of 2018 was $143.9 million, compared $218.6 million in the fourth quarter of 2017 and
$91.4 million in the first quarter of
2017. Gross margin in the first quarter of 2018 was 10.1%, compared
to 19.7% in the fourth quarter of 2017 and 13.5% in the first
quarter of 2017, and first quarter 2018 guidance of 10.0% to 12.0%.
The sequential decrease in gross margin was primarily due to the
low margin associated with the 309 MWp of U.S. solar power plants
sold in the quarter, partially offset by an increased module
average selling price in the first quarter of 2018.
Total operating expenses in the first quarter of 2018 were
$65.7 million, down 25.7% from
$88.4 million in the fourth quarter
of 2017 and down 29.9% from $93.7
million in the first quarter of 2017.
Selling expenses in the first quarter of 2018 were $42.3 million, up 6.0% from $39.9 million in the fourth quarter of 2017 and
up 24.7% from $33.9 million in the
first quarter of 2017. The sequential increase was primarily due to
increased labor costs and transaction costs related to solar power
plant sales, partially offset by decreased shipping and handling
costs.
General and administrative expenses in the first quarter of 2018
were $48.8 million, down 30.0% from
$69.7 million in the fourth quarter
of 2017 and down 11.4% from $55.1
million in the first quarter of 2017. Excluding a
$10.2 million fixed asset impairment
charge in the fourth quarter of 2017, the sequential decrease was
primarily due to a reversal of $4.5
million in other payables and a decrease in professional
service expenses.
Research and development expenses in the first quarter of 2018
were $9.5 million, compared to
$8.6 million in the fourth quarter of
2017 and $5.6 million in the first
quarter of 2017, as the Company further strengthens its leadership
position by strategically investing in solar power technology
advancements and efficiencies.
Other operating income in the first quarter of 2018 was
$34.9 million, compared to
$29.8 million in the fourth quarter
of 2017 and $0.9 million in the first
quarter of 2017. Other operating income in the first quarter of
2018 reflects the net gain from the sale of solar power plants in
the U.K. and Japan.
Income from operations in the first quarter of 2018 was
$78.2 million, compared to
$130.2 million in the fourth quarter
of 2017, and a loss from operations of $2.3
million in the first quarter of 2017. Operating margin was
5.5% in the first quarter of 2018, compared to 11.7% in the fourth
quarter of 2017 and negative 0.3% in the first quarter of 2017. The
sequential decrease primarily reflects the higher revenue
contribution from the sale of lower margin solar power plants in
the first quarter of 2018.
Non-cash depreciation and amortization charges in the first
quarter of 2018 were approximately $34.5
million, compared to $37.2
million in the fourth quarter of 2017, and $17.1 million in the first quarter of 2017.
Non-cash equity compensation expense in the first quarter of 2018
was $2.1 million, compared to
$2.2 million in the fourth quarter of
2017 and $0.9 million in the first
quarter of 2017.
Interest expense in the first quarter of 2018 was $29.6 million, compared to $33.5 million in the fourth quarter of 2017 and
$24.1 million in the first quarter of
2017.
Interest income in the first quarter of 2018 was $3.6 million, compared to $3.2 million in the fourth quarter of 2017 and
$2.5 million in the first quarter of
2017.
The Company recorded a gain on the change in fair value of
derivatives in the first quarter of 2018 of $4.5 million, compared to a gain of $7.6 million in the fourth quarter of 2017 and a
loss of $7.8 million in the first
quarter of 2017. Foreign exchange loss in the first quarter of 2018
was $8.5 million, compared to
$9.5 million in the fourth quarter of
2017, and a foreign exchange gain of $14.2
million in the first quarter of 2017.
Income tax expense in the first quarter of 2018 was $4.1 million, compared to $28.9 million in the fourth quarter of 2017, and
an income tax benefit of $3.1 million
in the first quarter of 2017.
Net income attributable to Canadian Solar in the first quarter
of 2018 was $43.4 million or
$0.72 per diluted share, compared to
$61.4 million or $1.01 per diluted share in the fourth quarter of
2017 and a net loss of $13.3 million
or $0.23 per diluted share in the
first quarter of 2017.
Financial Condition
The Company had a cash, cash equivalents and restricted cash
balance of $1.19 billion as of
March 31, 2018, compared to
$1.19 billion as of December 31, 2017.
Accounts receivable, net of allowance for doubtful accounts, at
the end of the first quarter of 2018 were $354.3 million, compared to $358.1 million at the end of the fourth quarter
of 2017. Accounts receivable turnover in the first quarter of 2018
was 26 days, compared to 38 days in the fourth quarter of 2017.
Inventories at the end of the first quarter of 2018 were
$414.1 million, compared to
$346.1 million at the end of the
fourth quarter of 2017. Inventory turnover in the first quarter of
2018 was 28 days, compared to 35 days in the fourth quarter of
2017.
Accounts and notes payable at the end of the first quarter of
2018 were $914.0 million, compared to
$975.6 million at the end of the
fourth quarter of 2017.
Short-term borrowings at the end of the first quarter of 2018
were $1.86 billion, compared to
$1.96 billion at the end of the
fourth quarter of 2017. Long-term borrowings at the end of the
first quarter of 2018 were $328.1
million, compared to $404.3
million at the end of the fourth quarter of 2017.
Senior convertible notes totaled $126.7
million at the end of the first quarter of 2018, compared to
$126.5 million at the end of the
fourth quarter of 2017.
Total borrowings directly related to utility-scale solar power
projects were $1.12 billion at the
end of the first quarter of 2018, compared to $1.38 billion at the end of the fourth quarter of
2017. Total debt at the end of the first quarter of 2018 was
approximately $2.45 billion, of which
$785.7 million was non-recourse.
Approximately $708.4 million of the
non-recourse debt related to utility-scale solar power
projects.
Dr. Shawn Qu, Chairman and Chief
Executive Officer of Canadian Solar commented, "Results for the
first quarter 2018 are within our expectations, with solar module
shipments and revenue exceeding our guidance. The capacity
utilization level was lower than the fourth quarter of 2017, due to
several reasons, including seasonally low demand and holidays in
China, the Section 201 safeguard
decision on solar products by the U.S. government and the safeguard
trade investigations in India. On
the positive side, we maintained a flat to slightly up module
average selling price during the quarter. On the energy business
side, we are pleased to have completed the sale of three solar
power plants in the U.S. to KEPCO, reflecting the attractiveness of
our global power assets. We further diversified our utility scale
solar power project pipeline geographically into Australia, South
Korea and Argentina, as we
executed on additional growth opportunities. As of April 30, 2018, our portfolio of utility-scale
solar power plants in operation was approximately 948 MWp and our
portfolio of late-stage solar power projects, including those in
construction, was approximately 2.3 GWp."
Dr. Huifeng Chang, Senior Vice
President and Chief Financial Officer of Canadian Solar commented,
"We are encouraged by our success in monetizing our solar power
plants globally. During the quarter, we completed the sale of the
28 MWp Gaskell West 1 project to Southern Power, sold 142 MWp of
solar power plants in the U.K. to Greencoat and sold three solar
power plants in the U.S., totaling 309 MWp to KEPCO. Gross
margin was in line with our guidance in the range of 10.0% to
12.0%, as we absorbed the impact of the lower margin solar power
plants sales in the U.S. and higher than expected purchase prices
for raw materials used in module manufacturing. We are working to
secure approval for the sale of three other U.S. solar power plants
totaling 399 MWp. All together our actions have strengthened our
balance sheet and allow us to redeploy our capital to support the
profitable growth of our business and build value for
shareholders."
Utility-Scale Solar Project Pipeline
The Company divides its utility-scale solar project pipeline
into two categories: an early-to-mid-stage pipeline and a
late-stage pipeline. The late-stage pipeline primarily includes
projects that have energy off-take agreements and are expected to
be built within the next two to four years. The Company cautions
that some late-stage projects may not reach completion due to risks
such as failure to secure permits and grid connection, among other
risk factors.
Late-Stage Utility-Scale Solar Project Pipeline
As of April 30, 2018, the
Company's late-stage utility-scale solar project pipeline,
including those in construction, totaled approximately 2.3 GWp,
including 459 MWp in the U.S., 435.7 MWp in Mexico, 422.5 MWp in China, 351.3 MWp in Japan, 499.2 MWp in Brazil, 97.6 in Argentina, 24 MWp in India, 24.2 MWp in Australia, 18.4 MWp in Chile and 8 MWp in South Korea.
In the United States, as
of April 30, 2018, the Company's
late-stage, utility-scale solar project pipeline is detailed in the
table below.
Project
|
MWp
|
Location
|
Status
|
Expected
COD
|
Mustang
Two
|
210
|
California
|
Development
|
2020
|
Gaskell West
2
|
147
|
California
|
Development
|
2020
|
NC102
|
102
|
North
Carolina
|
Construction
|
2018
|
Total
|
459
|
|
|
|
In Japan, as of
April 30, 2018, the Company's
late-stage, utility-scale solar project pipeline for which
interconnection agreements and feed-in tarrif ("FIT") have been
secured totaled approximately 351.3 MWp, 122.7 MWp of which are
under construction and 228.6 MWp of which are under development.
The Company has an additional 9.4 MWp of projects in the bidding
process, which will be added to the list of late-stage projects
once FIT has been secured.
In January 2018, the Company
achieved commercial operation ("COD") on a 1 MWp solar power
project.
The table below sets forth the expected COD schedule of the
Company's late-stage utility-scale solar power projects in
Japan, as of April 30, 2018:
Expected COD
Schedule (MWp)
|
2018
|
|
2019
|
|
2020
|
|
2021 and
Thereafter
|
|
Total
|
72.7
|
|
97.5
|
|
45.3
|
|
135.8
|
|
351.3
|
In Brazil, as of
April 30, 2018, the Company's
late-stage, utility-scale solar project pipeline is detailed in the
table below.
Project
|
MWp
|
Location
|
Status
|
Expected
COD
|
Pirapora
II
|
23(1)
|
Minas
Gerais
|
Construction
|
2018
|
Francisco
Sa
|
122.2
|
Ceara
|
Development
|
2021
|
Jaiba
|
97.3
|
Minas
Gerais
|
Development
|
2021
|
Lavras
|
144.7
|
Minas
Gerais
|
Development
|
2021
|
Salgueiro
|
112
|
Pernambuco
|
Development
|
2020
|
Total
|
499.2
|
|
|
|
Note: (1) 23 MWp represents the Company's 20% equity
interest in 115 MWp Pirapora II.
In Brazil's A-4 auction held on
April 4, 2018, the Company won three
solar power projects totaling 364.2 MWp. The projects have been
awarded 20-year power purchase agreements with an average price of
118.15 BRL/MWh (approximately
US$35.58/MWh). The Company will
develop and build the projects and expects to bring them to COD in
2021.
In April 2018, the Company
completed the sale of its interest in the 80.6 MWp Guimarania solar
energy project in Brazil to Global
Power Generation, a subsidiary of the Spanish energy group Gas
Natural Fenosa.
In Mexico, as of
April 30, 2018, the Company's
late-stage, utility-scale solar project pipeline is detailed in the
table below.
Project
|
MWp
|
Location
|
Status
|
Expected
COD
|
EL Mayo
|
124
|
Sonora
|
Development
|
2020
|
Horus
|
119
|
Aguascalientes
|
Development
|
2020
|
Tastiota
|
125
|
Sonora
|
Development
|
2020
|
Aguascalientes
|
67.7
|
Aguascalientes
|
Construction
|
2018
|
Total
|
435.7
|
|
|
|
In China, as of
April 30, 2018, the Company's
late-stage, utility-scale power pipeline totaled 422.5 MWp.
Solar Power Plants in Operation
In addition to its late-stage utility-scale solar project
pipeline, as of April 30, 2018, the
Company's portfolio of utility-scale, solar power plants in
operation totaled 947.9 MWp. The plants are recorded on the
Company's balance sheet as "project assets", "assets held-for-sale"
and "solar power systems, net". Revenue from the sale of
electricity generated by the plants recorded as "assets
held-for-sale" and "solar power systems, net" totaled $2.6 million in the first quarter of 2018,
compared to $4.7 million in the
fourth quarter of 2017. The sequential decrease reflects a
reduction in the number of plants in operation as of April 30, 2018, compared to February 28, 2018.
The sale of projects recorded as "project assets" (build to
sell) on the balance sheet will be recorded as revenue once revenue
recognition criteria are met, and the gain from the sale of
projects recorded as "assets held-for-sale" and "solar power
systems, net" (build to own) on the balance sheet will be recorded
within "other operating income (expenses)" in the income
statement.
The table below sets forth the Company's total portfolio of
utility-scale, solar power plants in operation, as of April 30, 2018:
U.S.
|
Japan
|
Brazil
|
China
|
India
|
Others
|
Total
|
499
|
85.6
|
56.8
|
148.1
|
126.1
|
32.3
|
947.9
|
Manufacturing Capacity
Subject to market conditions, the Company plans to expand its
ingot, wafer, cell and module capacities by December 31, 2018 to 2.0 GW, 5.0 GW, 7.05 GW and
9.91 GW, respectively.
Manufacturing
Capacity Roadmap (MW)
|
|
31-Dec-17
|
30-Jun-18
|
31-Dec-18
|
Ingot
|
1,200
|
1,620
|
2,000
|
Wafer
|
5,000
|
5,000
|
5,000
|
Cell
|
5,450
|
5,450
|
7,050
|
Module
|
8,110
|
8,310
|
9,910
|
All of the Company's wafer manufacturing capacity uses diamond
wire-saw technology. Diamond wire-saw technology is compatible with
the Company's proprietary and highly efficient black silicon
multi-crystalline solar cell technology, thereby reducing silicon
usage and manufacturing cost.
Business Outlook
The Company's business outlook is based on management's current
views and estimates with respect to operating and market
conditions, its current order book and the global financing
environment. It is also subject to uncertainty relating to final
customer demand and solar project construction and sale schedules.
Management's views and estimates are subject to change without
notice.
For the second quarter of 2018, the Company expects total solar
module shipments to be in the range of approximately 1.50 GW to
1.60 GW, including approximately 100 MW of shipments to the
Company's utility-scale, solar power projects that may not be
recognized as revenue in second quarter 2018. Total revenue for the
second quarter of 2018 is expected to be in the range of
$690 million to $730 million. Gross margin for the second quarter
is expected to be between 20.0% and 22.0%.
Dr. Shawn Qu, Chairman and Chief
Executive Officer of Canadian Solar commented, "We expect a shift
in global demand to developing markets to offset China, India
and the U.S. We also expect demand in other markets to improve,
including Europe, Africa, Argentina and Mexico. These trends align themselves with the
Company's global footprint and should serve as a catalyst for
continued growth."
Recent Developments
On May 14, 2018, Canadian Solar
announced that it had acquired exclusive rights to an 8 MW
greenfield development project portfolio in South Korea that is expected to start
construction by early 2019.
On April 27, 2018, Canadian Solar
announced it had signed an agreement with Global Investment
Holdings to develop and operate a pipeline of solar power projects
with total capacity of up to 300 MWp in Europe, Middle
East and Africa. Canadian
Solar will provide engineering, procurement and construction for,
and operating and maintenance services to, the projects.
On April 16, 2018, Canadian Solar
announced it had completed the sale of its interest in the 80.6 MWp
Guimarania solar energy project in Brazil to Global Power Generation, a
subsidiary of Spanish energy group Gas Natural Fenosa.
On April 10, 2018, Canadian Solar
announced that it had won three solar photovoltaic projects
totaling 364 MWp in Brazil. The
projects have been awarded 20-year power purchase agreements with
an average price of 118.15 BRL/MWh
(approximately $35.58/MWh).
On March 29, 2018, Canadian Solar
announced that it had acquired a 97.6 MWp solar photovoltaic
project in Cafayate, Salta Province,
Argentina. The project received a
USD denominated 20-year power purchase agreement at $56.28/MWh.
On March 14, 2018, Canadian Solar
announced that it had successfully started commercial operation of
a 6 MWp solar power plant in Keetmanshoop, Namibia.
On March 13, 2018, Canadian Solar
announced that its wholly-owned subsidiary, Recurrent Energy, had
completed the sale of its interests in three solar power plants --
Astoria (100 MWac/131 MWp), Astoria 2 (75 MWac/100 MWp), and Barren
Ridge (60 MWac/78 MWp) projects -- totaling 235 MWac/309 MWp
to KEPCO, South Korea's largest
electric utility.
Conference Call Information
The Company will hold a conference call at 8:00 a.m. U.S. Eastern Daylight Time on
May 16, 2018 (8:00 p.m., May 16,
2018 in Hong Kong) to
discuss the Company's first quarter 2018 results and business
outlook. The dial-in phone number for the live audio call is
+1-866-519-4004 (toll-free from the U.S.), +852-3018-6771 (local
dial-in from HK) or +1-845-675-0437 (from international locations).
The passcode for the call is 7789205. A live webcast of the
conference call will also be available on the Investor Relations
section of Canadian Solar's website at www.canadiansolar.com.
A replay of the call will be available 2 hours after the
conclusion of the call until 9:00
a.m. U.S. Eastern Daylight Time on Thursday, May 24, 2018 (9:00 p.m., May 24,
2018 in Hong Kong) and can
be accessed by dialing +1-855-452-5696 (toll-free from the U.S.),
+852-3051-2780 (local dial-in from HK) or +1-646-254-3697 (from
international locations), with passcode 7789205. A webcast
replay will also be available on the investor relations section of
Canadian Solar's at www.canadiansolar.com.
About Canadian Solar Inc.
Founded in 2001 in Canada,
Canadian Solar is one of the world's largest and foremost solar
power companies. As a leading manufacturer of solar photovoltaic
modules and provider of solar energy solutions, Canadian Solar also
has a geographically diversified pipeline of utility-scale power
projects in various stages of development. In the past 17 years,
Canadian Solar has successfully delivered over 27GW of premium
quality modules to over 100 countries around the world.
Furthermore, Canadian Solar is one of the most bankable companies
in the solar industry, having been publicly listed on NASDAQ since
2006. For additional information about the Company, follow Canadian
Solar on LinkedIn or
visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release regarding the Company's
expected future shipment volumes, gross margins are forward-looking
statements that involve a number of risks and uncertainties that
could cause actual results to differ materially. These statements
are made under the "Safe Harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by such terms as "believes,"
"expects," "anticipates," "intends," "estimates," the negative of
these terms, or other comparable terminology. Factors that could
cause actual results to differ include general business and
economic conditions and the state of the solar industry;
governmental support for the deployment of solar power; future
available supplies of high-purity silicon; demand for end-use
products by consumers and inventory levels of such products in the
supply chain; changes in demand from significant customers; changes
in demand from major markets such as Japan, the U.S., India and China; changes in customer order patterns;
changes in product mix; capacity utilization; level of competition;
pricing pressure and declines in average selling prices; delays in
new product introduction; delays in utility-scale project approval
process; delays in utility-scale project construction; delays in
the completion of project sales; continued success in technological
innovations and delivery of products with the features customers
demand; shortage in supply of materials or capacity requirements;
availability of financing; exchange rate fluctuations; litigation
and other risks as described in the Company's SEC filings,
including its annual report on Form 20-F filed on April 26, 2018. Although the Company believes
that the expectations reflected in the forward looking statements
are reasonable, it cannot guarantee future results, level of
activity, performance, or achievements. Investors should not place
undue reliance on these forward-looking statements. All information
provided in this press release is as of today's date, unless
otherwise stated, and Canadian Solar undertakes no duty to update
such information, except as required under applicable law.
FINANCIAL TABLES FOLLOW
Canadian Solar
Inc.
|
Unaudited
Condensed Consolidated Statement of Operations
|
(In Thousands of
US Dollars, Except Share And Per Share Data And Unless Otherwise
Stated)
|
|
|
Three Months
Ended
|
|
|
March 31
|
|
December
31
|
|
March 31
|
|
|
2018
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
Net
revenues
|
$
1,424,911
|
|
$
1,108,764
|
|
$
677,042
|
Cost of
revenues
|
1,280,965
|
|
890,211
|
|
585,636
|
|
|
|
|
|
|
|
|
Gross
profit
|
143,946
|
|
218,553
|
|
91,406
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling
expenses
|
42,331
|
|
39,935
|
|
33,941
|
|
General and
administrative expenses
|
48,775
|
|
69,650
|
|
55,070
|
|
Research and
development expenses
|
9,499
|
|
8,564
|
|
5,624
|
|
Other operating
income
|
(34,906)
|
|
(29,756)
|
|
(898)
|
Total operating
expenses
|
65,699
|
|
88,393
|
|
93,737
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
78,247
|
|
130,160
|
|
(2,331)
|
Other income
(expenses):
|
|
|
|
|
|
|
Interest
expense
|
(29,594)
|
|
(33,487)
|
|
(24,111)
|
|
Interest
income
|
3,576
|
|
3,180
|
|
2,522
|
|
Gain (loss) on change
in fair value of derivatives
|
4,474
|
|
7,565
|
|
(7,752)
|
|
Foreign exchange gain
(loss)
|
(8,456)
|
|
(9,541)
|
|
14,214
|
|
Investment
loss
|
-
|
|
(3,607)
|
|
-
|
Other expenses,
net
|
(30,000)
|
|
(35,890)
|
|
(15,127)
|
|
|
|
|
|
|
|
Income (loss)
before income taxes and equity in
earnings (loss) of unconsolidated investees
|
48,247
|
|
94,270
|
|
(17,458)
|
Income tax (expense)
benefit
|
(4,092)
|
|
(28,940)
|
|
3,109
|
Equity in earnings
(loss) of unconsolidated investees
|
(269)
|
|
(2,550)
|
|
606
|
Net income
(loss)
|
43,886
|
|
62,780
|
|
(13,743)
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to
non-controlling interests
|
509
|
|
1,378
|
|
(408)
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Canadian Solar Inc.
|
$
43,377
|
|
$
61,402
|
|
$
(13,335)
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic
|
$
0.74
|
|
$
1.05
|
|
$
(0.23)
|
Shares used in
computation - basic
|
58,553,622
|
|
58,486,391
|
|
57,832,572
|
Earnings (loss) per
share - diluted
|
$
0.72
|
|
$
1.01
|
|
$
(0.23)
|
Shares used in
computation - diluted
|
61,952,777
|
|
61,936,162
|
|
57,832,572
|
Canadian Solar
Inc.
|
Unaudited
Condensed Consolidated Statement of Comprehensive
Income
|
(In Thousands of
US Dollars)
|
|
Three Months
Ended
|
|
March
31
|
|
December
31
|
|
March
31
|
|
2018
|
|
2017
|
|
2017
|
Net Income
(loss)
|
43,886
|
|
62,780
|
|
(13,743)
|
Other
comprehensive income (net of
tax of nil):
|
|
|
|
|
|
Foreign currency
translation adjustment
|
23,181
|
|
3,395
|
|
8,929
|
Gain on changes in
fair value of
derivatives
|
5,128
|
|
296
|
|
1,681
|
Comprehensive
income (loss)
|
72,195
|
|
66,471
|
|
(3,133)
|
Less: comprehensive
income (loss)
attributable to non-controlling interests
|
3,500
|
|
2,034
|
|
(2,438)
|
Comprehensive
income (loss)
attributable to Canadian Solar Inc.
|
68,695
|
|
64,437
|
|
(695)
|
Canadian Solar
Inc.
|
Unaudited
Condensed Consolidated Balance Sheet
|
(In Thousands of
US Dollars)
|
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
567,350
|
|
$
561,679
|
|
Restricted cash -
current
|
613,410
|
|
617,761
|
|
Accounts receivable
trade, net
|
354,333
|
|
358,091
|
|
Contract
assets
|
1,227
|
|
1,253
|
|
Amounts due from
related parties
|
16,194
|
|
26,102
|
|
Inventories
|
414,090
|
|
346,092
|
|
Value added tax
recoverable
|
88,045
|
|
94,503
|
|
Advances to suppliers
- current
|
66,090
|
|
61,399
|
|
Derivative assets -
current
|
23,023
|
|
16,200
|
|
Project assets -
current
|
958,759
|
|
1,523,342
|
|
Assets
held-for-sale
|
13,812
|
|
182,797
|
|
Prepaid expenses and
other current assets
|
296,574
|
|
296,084
|
Total current
assets
|
3,412,907
|
|
4,085,303
|
Restricted cash -
non-current
|
11,026
|
|
10,695
|
Property, plant and
equipment, net
|
790,662
|
|
747,235
|
Solar power systems,
net
|
63,144
|
|
63,964
|
Deferred tax assets,
net
|
134,971
|
|
131,796
|
Advances to suppliers
- non-current
|
58,959
|
|
38,325
|
Prepaid land use
right
|
91,368
|
|
78,649
|
Investments in
affiliates
|
414,839
|
|
414,215
|
Intangible assets,
net
|
11,409
|
|
10,986
|
Goodwill
|
4,061
|
|
6,248
|
Derivatives assets -
non-current
|
11,587
|
|
10,911
|
Project assets -
non-current
|
165,887
|
|
148,170
|
Other non-current
assets
|
128,854
|
|
143,130
|
TOTAL
ASSETS
|
$
5,299,674
|
|
$
5,889,627
|
Current
liabilities:
|
|
|
|
|
Short-term
borrowings
|
$
1,857,575
|
|
$
1,957,755
|
|
Accounts and notes
payable
|
914,022
|
|
975,595
|
|
Amounts due to
related parties
|
16,687
|
|
6,023
|
|
Other
payables
|
294,626
|
|
315,321
|
|
Convertible
notes
|
126,712
|
|
-
|
|
Advances from
customers
|
52,587
|
|
51,739
|
|
Derivative
liabilities - current
|
6,353
|
|
6,121
|
|
Liabilities
held-for-sale
|
569
|
|
185,872
|
|
Financing
liabilities-current
|
154,698
|
|
407,683
|
|
Other current
liabilities
|
196,365
|
|
201,903
|
Total current
liabilities
|
3,620,194
|
|
4,108,012
|
Accrued warranty
costs
|
60,214
|
|
55,659
|
Convertible
notes
|
-
|
|
126,476
|
Long-term
borrowings
|
328,120
|
|
404,341
|
Amounts due to
related parties
|
863
|
|
-
|
Derivatives
liabilities - non-current
|
-
|
|
359
|
Liability for
uncertain tax positions
|
8,097
|
|
9,264
|
Deferred tax
liabilities - non-current
|
5,737
|
|
5,562
|
Loss contingency
accruals
|
26,466
|
|
25,682
|
Financing liabilities
- non-current
|
30,597
|
|
12,243
|
Other non-current
liabilities
|
75,850
|
|
82,254
|
Total
LIABILITIES
|
4,156,138
|
|
4,829,852
|
Equity:
|
|
|
|
|
Common
shares
|
702,311
|
|
702,162
|
|
Additional paid-in
capital
|
2,480
|
|
417
|
|
Retained
earnings*
|
428,323
|
|
383,681
|
|
Accumulated other
comprehensive loss
|
(28,716)
|
|
(54,034)
|
Total Canadian
Solar Inc. shareholders' equity
|
1,104,398
|
|
1,032,226
|
Non-controlling
interests in subsidiaries
|
39,138
|
|
27,549
|
TOTAL
EQUITY
|
1,143,536
|
|
1,059,775
|
TOTAL LIABILITIES
AND EQUITY
|
$
5,299,674
|
|
$
5,889,627
|
|
|
|
|
|
|
Note: * The Company, starting from January 1, 2018, adopted Accounting Standards
Update 2014-09, Revenue from Contracts with Customers (ASC 606),
using the modified retrospective method. The reported results for
year 2018 reflect the adoption of ASC 606, while the reported
results for year 2017 were prepared under the previous revenue
recognition guidance. The adoption of ASC 606 has no material
impact on the revenue recognition for the first quarter of 2018.
The cumulative-effect adjustment to the beginning balance of
retained earnings on January 1, 2018
was an increase of $1.3 million from
$383.7 million to $385.0 million, related to variable consideration
recognized for project sales in year 2017. It has no impact on the
Company's cash flows for the first quarter of 2018.
View original
content:http://www.prnewswire.com/news-releases/canadian-solar-reports-first-quarter-2018-results-300649409.html
SOURCE Canadian Solar Inc.