Maxeon Solar Technologies Announces Second Quarter 2024 Financial Results
-- Second Quarter Revenue of
-- TZE makes
In a letter addressed to the Company's shareholders, Maxeon's Chief Executive Officer
Maxeon's financial performance was largely consistent with our guidance for the second quarter, but the Company continues to face significant market headwinds and uncertainties due to intense competitive pressures, subdued distributed generation (DG) market demand, project delays and order cancellations affecting our large-scale business, and an unpredictable policy environment. In addition to these broader challenges, we recently experienced Customs and Border Protection's (CBP) first-ever detentions of our modules being imported into the
Because of this unprecedented level of uncertainty, we are currently unable to provide financial guidance for the third quarter and are therefore withdrawing full year 2024 revenue and adjusted EBITDA guidance. However, we expect that our third quarter revenue will decline significantly from the second quarter for the reasons discussed above. Due to these uncertainties as well as the rolling closing of the recapitalization-related transactions and related note conversions, we will not conduct a conference call to discuss second quarter results. Instead, we are providing an overview of our business as detailed in this letter. We intend to resume quarterly earnings conference calls once the business has stabilized, and we can offer more meaningful insights on current business metrics and future expectations.
We are taking aggressive actions to address the challenges we face. We recently improved our balance sheet by securing consequential new financing and renegotiating maturing debt. We have put a special committee in place to drive transformation, and we are evaluating several aspects of our operations to respond to the new market environment. We share below some of the actions we are taking to address the current challenges, and resume growth and profitability.
First, we will review second quarter results, which were largely in line with our expectations.
Business Overview
The Company's second quarter 2024 revenue stood at
In our utility scale business, we increased revenue by 12% sequentially to
Revenue for our DG business landed at
Recapitalization
We are taking critical actions to fund our immediate cash needs, provide capital to invest in our transformation initiatives, and to reduce pressures from debt maturities. As we close the transactions described below, we believe we will be on an improved financial footing, with a strengthened balance sheet, and higher equity book value.
Unfortunately, these transactions have significantly diluted and will continue to dilute current shareholders. Total shares outstanding increased from 55.7 million prior to the restructuring to approximately 1.4 billion currently. We expect further dilution to existing shareholders as detailed later in this section. The Company's proposed 100 for 1 reverse share split was approved by its shareholders during the recent Annual General Meeting and once effected is intended to increase the market price per share to regain compliance with the Nasdaq listing-requirements.
The Company has made substantial progress on its capital raising and debt restructuring initiatives, as announced previously. On
The conversion prices of the Tranche B Adjustable-Rate Convertible Second Lien Senior Secured Notes, Variable Rate Convertible First Lien Senior Secured Notes and 9.00% Convertible First Lien Senior Secured Notes were all reset using the 10-day VWAP from
Transformation Initiatives
We have established a Strategy and Transformation Office ("STO") led by Mr.
Leadership Changes
As previously announced, Mr.
CBP Detentions
In
Conclusion
Maxeon faces significant and unprecedented challenges primarily due to external market and policy factors. At the same time, our assets include almost 40 years of industry experience, a reputation for technology and product leadership, the industry's leading IP portfolio, a unique DG channel strategy, and a strong legacy of participation in utility-scale projects in the U.S. With critical financial support now in place from TZE, we look forward to utilizing these assets to first stabilize our business and then restore growth and profitability.
|
Selected Q2 Unaudited Financial Summary |
|||||
|
|
|||||
|
(In thousands, except shipments) |
Fiscal Q2 2024 |
|
Fiscal Q1 2024 |
|
Fiscal Q2 2023 |
|
Shipments, in MW |
526 |
|
488 |
|
807 |
|
Revenue |
$ 184,219 |
|
$ 187,456 |
|
$ 348,373 |
|
Gross (loss) profit(1) |
(7,785) |
|
(14,871) |
|
56,223 |
|
GAAP Operating expenses |
61,670 |
|
48,668 |
|
47,830 |
|
Net income (loss) attributable to the stockholders(1) |
11,664 |
|
(80,148) |
|
(1,509) |
|
Capital expenditures |
17,707 |
|
19,216 |
|
24,169 |
|
|
|
|
|
|
|
|
|
Other Financial Data(1) |
||||
|
(In thousands) |
Fiscal Q2 2024 |
|
Fiscal Q1 2024 |
|
Fiscal Q2 2023 |
|
Non-GAAP Gross (loss) profit |
$ (5,794) |
|
$ (12,888) |
|
$ 56,748 |
|
Non-GAAP Operating expenses |
40,180 |
|
38,520 |
|
40,883 |
|
Adjusted EBITDA |
(36,574) |
|
(38,977) |
|
30,240 |
|
|
|
|
(1) |
The Company's use of Non-GAAP financial information, including a reconciliation to |
For more information
Maxeon's second quarter 2024 financial results and management commentary can be found on Form 6-K by accessing the Financials & Filings page of the Investor Relations section of Maxeon's website at: https://corp.maxeon.com/investor-relations. The Form 6-
About
Forward-Looking Statements
This press release contains 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, including, but not limited to, statements regarding: (a) our ability to (i) meet short-term and long-term material cash requirements, (ii) complete an equity, debt or other financing, refinancing, exchange, or recapitalize our existing debt at favorable terms, if at all, (iii) service our outstanding debts and make payments as they come due and (iv) continue as a going concern; (b) the success of our ongoing restructuring initiatives; (c) our expectations regarding product pricing trends, demand and growth projections, including our efforts to enforce our intellectual property rights against our competitors; (d) disruptions to our operations and supply chain resulting from, among other things, government regulatory or enforcement actions, such as the detentions of our products by the
The forward-looking statements can be also identified by terminology such as "may," "might," "could," "will," "aims," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and Maxeon's operations and business outlook contain forward-looking statements.
These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. Factors that could cause or contribute to such differences include, but are not limited to: (1) challenges in executing transactions key to our strategic plans, transformation initiatives and ongoing restructuring efforts, including regulatory and other challenges that may arise; (2) our liquidity, substantial indebtedness, terms and conditions upon which our indebtedness is incurred, and ability to obtain additional financing for our projects, customers and operations on favorable terms, or at all; (3) our ability to manage supply chain shortages and/or excess inventory and cost increases and operating expenses; (4) potential disruptions to our operations and supply chain resulting from, among other things, government regulatory or enforcement activities, such as the detentions of our products by the
Use of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP gross (loss) profit, non-GAAP operating expenses and earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for stock-based compensation, restructuring charges and fees, remeasurement loss on prepaid forward and physical delivery forward, loss on extinguishment of debt and equity in income of unconsolidated investees and associated gains ("Adjusted EBITDA") to supplement our consolidated financial results presented in accordance with GAAP. Non-GAAP gross (loss) profit is defined as gross (loss) profit excluding stock-based compensation and restructuring charges and fees. Non-GAAP operating expenses is defined as operating expenses excluding stock-based compensation and restructuring charges and fees.
We believe that non-GAAP gross (loss) profit, non-GAAP operating expenses and Adjusted EBITDA provide greater transparency into management's view and assessment of the Company's ongoing operating performance by removing items management believes are not representative of our continuing operations and may distort our longer-term operating trends. We believe these measures are useful to help enhance the comparability of our results of operations across different reporting periods on a consistent basis and with our competitors, distinct from items that are infrequent or not associated with the Company's core operations as presented above. We also use these non-GAAP measures internally to assess our business, financial performance and current and historical results, as well as for strategic decision-making and forecasting future results. Given our use of non-GAAP measures, we believe that these measures may be important to investors in understanding our operating results as seen through the eyes of management. These non-GAAP measures are neither prepared in accordance with GAAP nor are they intended to be a replacement for GAAP financial data, should be reviewed together with GAAP measures and may be different from non-GAAP measures used by other companies.
As presented in the "Reconciliation of Non-GAAP Financial Measures" section, each of the non-GAAP financial measures excludes one or more of the following items in arriving to the non-GAAP measures:
- Stock-based compensation expense. Stock-based compensation relates primarily to equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict and is excluded from non-GAAP gross (loss) profit, non-GAAP operating expense and Adjusted EBITDA. Management believes that this adjustment for stock-based compensation expense provides investors with a basis to measure our core performance, including the ability to compare our performance with the performance of other companies, without the period-to-period variability created by stock-based compensation.
-
Provision for expected credit losses. This relates to the expected credit loss in relation to the financial assets under the Separation and Distribution Agreement dated
November 8, 2019 (the "SDA") entered into with SunPower Corporation ("SunPower") in connection with the Company's spin-off from SunPower. Such loss is excluded from non-GAAP operating expense and Adjusted EBITDA as this relates to SunPower's business which Maxeon did not and will not have economic benefits to, as the Company's involvement is solely through SunPower's indemnification obligations set forth in the SDA. As such, management believes that this is not part of core operating activity and it is appropriate to exclude the provision for expected credit losses from our non-GAAP financial measures as it is not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance. - Restructuring charges and fees (benefits). We incur restructuring charges, inventory impairment and other inventory related costs associated with the re-engineering of our IBC capacity, and fees related to reorganization plans aimed towards realigning resources consistent with our global strategy and improving its overall operating efficiency and cost structure. Restructuring charges and fees (benefits) are excluded from non-GAAP operating expenses and Adjusted EBITDA because they are not considered core operating activities. Although we have engaged in restructuring activities and initiatives, past activities have been discrete events based on unique sets of business objectives. As such, management believes that it is appropriate to exclude restructuring charges and fees (benefits) from our non-GAAP financial measures as they are not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance.
-
Gain on extinguishment of debt. This relates to the gain that arose from the substantial modification of our Green Convertible Senior Notes due 2025 and 2027 Notes in
June 2024 . Gain on debt extinguishment is excluded from Adjusted EBITDA because it is not considered part of core operating activities. Such activities are discrete events based on unique sets of business objectives. As such, management believes that it is appropriate to exclude the gain on extinguishment of debt from our non-GAAP financial measures as it is not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance. -
Remeasurement loss (gain) on prepaid forward and physical delivery forward. This relates to the mark-to-market fair value remeasurement of privately negotiated prepaid forward and physical delivery transactions. The transactions were entered into in connection with the issuance on
July 17, 2020 of the 6.50% Green Convertible Senior Notes due 2025 for an aggregate principal amount of$200 million . The prepaid forward is remeasured to fair value at the end of each reporting period, with changes in fair value booked in earnings. The fair value of the prepaid forward is primarily affected by the Company's share price. The physical delivery forward was remeasured to fair value at the end of the Note Valuation Period onSeptember 29, 2020 , and was reclassified to equity after remeasurement, and will not be subsequently remeasured. The fair value of the physical delivery forward was primarily affected by the Company's share price. The remeasurement loss (gain) on prepaid forward and physical delivery forward is excluded from Adjusted EBITDA because it is not considered core operating activities. As such, management believes that it is appropriate to exclude the mark-to-market adjustments from our Adjusted EBITDA as it is not reflective of ongoing operating results nor do the loss contribute to a meaningful evaluation of our past operating performance. - Equity in income of unconsolidated investees and related gains. This relates to the income on our former unconsolidated equity investment Huansheng JV and gains on such investment on divestment. This is excluded from our Adjusted EBITDA financial measure as it is non-cash in nature and not reflective of our core operational performance. As such, management believes that it is appropriate to exclude such charges as they do not contribute to a meaningful evaluation of our performance.
|
Reconciliation of Non-GAAP Financial Measures |
|||||
|
|
|||||
|
|
Three Months Ended |
||||
|
(In thousands) |
|
|
|
|
|
|
Gross (loss) profit |
$ (7,785) |
|
$ (14,871) |
|
$ 56,223 |
|
Stock-based compensation |
166 |
|
696 |
|
525 |
|
Restructuring charges and fees |
1,825 |
|
1,287 |
|
— |
|
Non-GAAP Gross (loss) profit |
(5,794) |
|
(12,888) |
|
56,748 |
|
|
|
|
|
|
|
|
GAAP Operating expenses |
61,670 |
|
48,668 |
|
47,830 |
|
Stock-based compensation |
(5,070) |
|
(6,182) |
|
(7,071) |
|
Provision for expected credit losses |
(11,462) |
|
— |
|
— |
|
Restructuring (charges and fees) benefits |
(4,958) |
|
(3,966) |
|
124 |
|
Non-GAAP Operating expenses |
40,180 |
|
38,520 |
|
40,883 |
|
|
|
|
|
|
|
|
Net income (loss) attributable to the stockholders |
11,664 |
|
(80,148) |
|
(1,509) |
|
Interest expense, net |
10,109 |
|
8,741 |
|
8,903 |
|
Provision for income taxes |
3,212 |
|
1,203 |
|
5,893 |
|
Depreciation |
10,338 |
|
10,330 |
|
14,546 |
|
Amortization |
220 |
|
228 |
|
45 |
|
EBITDA |
35,543 |
|
(59,646) |
|
27,878 |
|
Stock-based compensation |
5,236 |
|
6,878 |
|
7,596 |
|
Provision for expected credit losses |
11,462 |
|
— |
|
— |
|
Gain on extinguishment of debt |
(77,266) |
|
— |
|
— |
|
Restructuring charges and fees (benefits) |
6,783 |
|
5,253 |
|
(124) |
|
Remeasurement loss (gain) on prepaid forward |
5,751 |
|
8,538 |
|
(4,718) |
|
Equity in income of unconsolidated investees and related gains |
(24,083) |
|
— |
|
(392) |
|
Adjusted EBITDA |
(36,574) |
|
(38,977) |
|
30,240 |
©2024 Maxeon Solar Technologies, Ltd. All rights reserved. MAXEON is a registered trademark of
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except for shares data) |
|||
|
|
|||
|
|
As of |
||
|
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 81,381 |
|
$ 190,169 |
|
Restricted short-term marketable securities |
1,337 |
|
1,403 |
|
Accounts receivable, net |
32,035 |
|
62,687 |
|
Inventories |
230,912 |
|
308,948 |
|
Prepaid expenses and other current assets |
43,430 |
|
55,812 |
|
Total current assets |
$ 389,095 |
|
$ 619,019 |
|
Property, plant and equipment, net |
291,713 |
|
280,025 |
|
Operating lease right of use assets |
24,219 |
|
22,824 |
|
Other intangible assets, net |
2,915 |
|
3,352 |
|
|
7,879 |
|
7,879 |
|
Other long-term assets |
48,335 |
|
68,910 |
|
Total assets |
$ 764,156 |
|
$ 1,002,009 |
|
Liabilities and Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 145,108 |
|
$ 153,020 |
|
Accrued liabilities |
120,421 |
|
113,456 |
|
Contract liabilities, current portion |
11,125 |
|
134,171 |
|
Short-term debt |
2,113 |
|
25,432 |
|
Operating lease liabilities, current portion |
6,913 |
|
5,857 |
|
Total current liabilities |
$ 285,680 |
|
$ 431,936 |
|
Long-term debt |
973 |
|
1,203 |
|
Contract liabilities, net of current portion |
73,548 |
|
113,564 |
|
Operating lease liabilities, net of current portion |
24,117 |
|
19,611 |
|
Convertible debt |
363,180 |
|
385,558 |
|
Deferred tax liabilities |
6,994 |
|
7,001 |
|
Other long-term liabilities |
31,474 |
|
38,494 |
|
Total liabilities |
$ 785,966 |
|
$ 997,367 |
|
Commitments and contingencies |
|
|
|
|
Equity: |
|
|
|
|
Common stock, no par value (55,705,553 and 53,959,109 issued and outstanding as of |
$ — |
|
$ — |
|
Additional paid-in capital |
853,164 |
|
811,361 |
|
Accumulated deficit |
(864,576) |
|
(796,092) |
|
Accumulated other comprehensive loss |
(15,514) |
|
(16,378) |
|
Equity attributable to the Company |
(26,926) |
|
(1,109) |
|
Noncontrolling interests |
5,116 |
|
5,751 |
|
Total equity |
(21,810) |
|
4,642 |
|
Total liabilities and equity |
$ 764,156 |
|
$ 1,002,009 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) |
|||||||
|
|
|||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
Revenue |
$ 184,219 |
|
$ 348,373 |
|
$ 371,675 |
|
$ 666,705 |
|
Cost of revenue |
192,004 |
|
292,150 |
|
394,331 |
|
556,857 |
|
Gross (loss) profit |
(7,785) |
|
56,223 |
|
(22,656) |
|
109,848 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
9,425 |
|
13,012 |
|
19,322 |
|
24,088 |
|
Sales, general and administrative |
52,315 |
|
34,492 |
|
88,034 |
|
65,520 |
|
Restructuring (benefits)/charges |
(70) |
|
326 |
|
2,982 |
|
143 |
|
Total operating expenses |
61,670 |
|
47,830 |
|
110,338 |
|
89,751 |
|
Operating (loss) income |
(69,455) |
|
8,393 |
|
(132,994) |
|
20,097 |
|
Other income (expense), net |
|
|
|
|
|
|
|
|
Interest expense |
(10,623) |
|
(11,070) |
|
(20,177) |
|
(21,873) |
|
Interest income |
514 |
|
2,167 |
|
1,327 |
|
3,971 |
|
Gain on extinguishment of debt |
77,266 |
|
— |
|
77,266 |
|
— |
|
Other, net |
16,595 |
|
4,550 |
|
9,874 |
|
28,993 |
|
Other income (expense), net |
83,752 |
|
(4,353) |
|
68,290 |
|
11,091 |
|
Income (loss) before income taxes and equity in income (losses) of unconsolidated investees |
14,297 |
|
4,040 |
|
(64,704) |
|
31,188 |
|
Provision for income taxes |
(3,212) |
|
(5,893) |
|
(4,415) |
|
(11,877) |
|
Equity in income (losses) of unconsolidated investees |
— |
|
392 |
|
— |
|
(354) |
|
Net income (loss) |
11,085 |
|
(1,461) |
|
(69,119) |
|
18,957 |
|
Net loss (income) attributable to noncontrolling interests |
579 |
|
(48) |
|
635 |
|
(195) |
|
Net income (loss) attributable to the stockholders |
$ 11,664 |
|
$ (1,509) |
|
$ (68,484) |
|
$ 18,762 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to stockholders: |
|
|
|
|
|
|
|
|
Basic |
$ 0.23 |
|
$ (0.03) |
|
$ (1.35) |
|
$ 0.43 |
|
Diluted |
0.03 |
|
(0.03) |
|
(1.35) |
|
0.43 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
51,198 |
|
45,158 |
|
50,851 |
|
43,273 |
|
Diluted |
668,426 |
|
45,158 |
|
50,851 |
|
44,110 |
|
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (In thousands) |
|||||||||||||||
|
|
|||||||||||||||
|
|
Shares |
|
Amount |
|
Additional Paid In Capital |
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Loss |
|
Equity Attributable to the Company |
|
Noncontrolling Interests |
|
Total Equity |
|
Balance at |
53,959 |
|
$ — |
|
$ 811,361 |
|
$ (796,092) |
|
$ (16,378) |
|
$ (1,109) |
|
$ 5,751 |
|
$ 4,642 |
|
Net loss |
— |
|
— |
|
— |
|
(80,148) |
|
— |
|
(80,148) |
|
(56) |
|
(80,204) |
|
Issuance of common stock for stock-based compensation, net of tax withheld |
725 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Recognition of stock-based compensation |
— |
|
— |
|
7,027 |
|
— |
|
— |
|
7,027 |
|
— |
|
7,027 |
|
Other comprehensive income |
— |
|
— |
|
— |
|
— |
|
1,019 |
|
1,019 |
|
— |
|
1,019 |
|
Balance at |
54,684 |
|
$ — |
|
$ 818,388 |
|
$ (876,240) |
|
$ (15,359) |
|
$ (73,211) |
|
$ 5,695 |
|
$ (67,516) |
|
Net loss |
— |
|
$ — |
|
$ — |
|
$ 11,664 |
|
$ — |
|
$ 11,664 |
|
$ (579) |
|
$ 11,085 |
|
Issuance of common stock for stock-based compensation, net of tax withheld |
201 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Issuance of common stock for settlement of obligation |
821 |
|
— |
|
4,140 |
|
— |
|
— |
|
4,140 |
|
— |
|
4,140 |
|
Issuance of warrants, net of issuance cost |
— |
|
— |
|
24,771 |
|
— |
|
— |
|
24,771 |
|
— |
|
24,771 |
|
Recognition of stock-based compensation |
— |
|
— |
|
5,865 |
|
— |
|
— |
|
5,865 |
|
— |
|
5,865 |
|
Other comprehensive income |
— |
|
— |
|
— |
|
— |
|
(155) |
|
(155) |
|
— |
|
(155) |
|
Balance at |
55,706 |
|
— |
|
853,164 |
|
(864,576) |
|
(15,514) |
|
(26,926) |
|
5,116 |
|
(21,810) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
Amount |
|
Additional Paid In Capital |
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Loss |
|
Equity Attributable to the Company |
|
Noncontrolling
|
|
Total Equity |
|
Balance at |
45,033 |
|
$ — |
|
$ 584,808 |
|
$ (520,263) |
|
$ (22,108) |
|
$ 42,437 |
|
$ 5,633 |
|
$ 48,070 |
|
Net loss |
— |
|
— |
|
— |
|
20,271 |
|
— |
|
20,271 |
|
147 |
|
20,418 |
|
Issuance of common stock for stock-based compensation, net of tax withheld |
377 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Recognition of stock-based compensation |
— |
|
— |
|
4,033 |
|
— |
|
— |
|
4,033 |
|
— |
|
4,033 |
|
Other comprehensive income |
— |
|
— |
|
— |
|
— |
|
1,627 |
|
1,627 |
|
— |
|
1,627 |
|
Balance at |
45,410 |
|
$ — |
|
$ 588,841 |
|
$ (499,992) |
|
$ (20,481) |
|
$ 68,368 |
|
$ 5,780 |
|
$ 74,148 |
|
Net (loss) income |
— |
|
— |
|
— |
|
(1,509) |
|
— |
|
(1,509) |
|
48 |
|
(1,461) |
|
Issuance of common stock, net of issuance cost |
7,120 |
|
|
|
193,491 |
|
— |
|
— |
|
193,491 |
|
— |
|
193,491 |
|
Issuance of common stock for stock-based compensation, net of tax withheld |
116 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Recognition of stock-based compensation |
— |
|
— |
|
6,980 |
|
— |
|
— |
|
6,980 |
|
— |
|
6,980 |
|
Other comprehensive loss |
— |
|
— |
|
— |
|
— |
|
(65) |
|
(65) |
|
— |
|
(65) |
|
Balance at |
52,646 |
|
— |
|
789,312 |
|
(501,501) |
|
(20,546) |
|
267,265 |
|
5,828 |
|
273,093 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) |
|||
|
|
|||
|
|
Six Months Ended |
||
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Net (loss) profit |
$ (69,119) |
|
$ 18,957 |
|
Adjustments to reconcile net (loss) profit to operating cash flows |
|
|
|
|
Depreciation and amortization |
21,116 |
|
29,042 |
|
Stock-based compensation |
12,114 |
|
12,257 |
|
Non-cash interest expense |
4,056 |
|
4,657 |
|
Gain on disposal of equity in unconsolidated investees |
(24,083) |
|
— |
|
Equity in losses of unconsolidated investees |
— |
|
354 |
|
Deferred income taxes |
(7) |
|
(460) |
|
Loss on impairment of property, plant and equipment |
1,542 |
|
442 |
|
Loss on impairment of right of use of asset |
4,525 |
|
— |
|
(Gain) loss on disposal of property, plant and equipment |
(837) |
|
9 |
|
Gain on debt extinguishment |
(77,266) |
|
— |
|
Remeasurement loss (gain) on prepaid forward |
14,289 |
|
(28,567) |
|
Provision for (utilization of) inventory reserves |
15,767 |
|
(10,377) |
|
Provision for expected credit losses |
11,655 |
|
201 |
|
Other, net |
1,048 |
|
(181) |
|
Changes in operating assets and liabilities |
|
|
|
|
Accounts receivable |
22,202 |
|
(23,850) |
|
Inventories |
60,427 |
|
(65,706) |
|
Prepaid expenses and other assets |
11,632 |
|
1,384 |
|
Operating lease right-of-use assets |
3,006 |
|
2,303 |
|
Accounts payable and other accrued liabilities |
(33,018) |
|
(13,507) |
|
Contract liabilities |
(122,861) |
|
48,661 |
|
Operating lease liabilities |
(3,364) |
|
(1,928) |
|
Net cash used in operating activities |
(147,176) |
|
(26,309) |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property, plant and equipment |
(36,923) |
|
(40,669) |
|
Purchases of intangible assets |
(10) |
|
(135) |
|
Proceeds from maturity of short-term securities |
— |
|
76,000 |
|
Purchase of short-term securities |
— |
|
(60,000) |
|
Purchase of restricted short-term marketable securities |
— |
|
(10) |
|
Proceeds from disposal of equity in unconsolidated investees |
24,000 |
|
— |
|
Proceeds from disposal of asset held for sale |
462 |
|
— |
|
Proceeds from disposal of property, plant and equipment |
824 |
|
— |
|
Net cash used in investing activities |
(11,647) |
|
(24,814) |
|
Cash flows from financing activities |
|
|
|
|
Proceeds from debt |
51,249 |
|
114,539 |
|
Repayment of debt |
(74,572) |
|
(129,526) |
|
Repayment of finance lease obligations |
(258) |
|
(252) |
|
Payment for transaction costs for ongoing equity issuance |
(2,424) |
|
— |
|
Net proceeds from issuance of common stock |
— |
|
194,226 |
|
Net proceeds from issuance and modification of convertible notes and warrants |
74,364 |
|
— |
|
Net cash provided by financing activities |
$ 48,359 |
|
$ 178,987 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(94) |
|
81 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
$ (110,558) |
|
$ 127,945 |
|
Cash, cash equivalents and restricted cash, beginning of period |
195,511 |
|
267,961 |
|
Cash, cash equivalents and restricted cash, end of period |
$ 84,953 |
|
$ 395,906 |
|
Non-cash transactions |
|
|
|
|
Property, plant and equipment purchases funded by liabilities |
$ 1,910 |
|
$ 16,485 |
|
Interest paid in shares |
4,140 |
|
— |
|
Interest paid by issuance of convertible notes |
5,519 |
|
— |
|
Right-of-use assets obtained in exchange for lease obligations |
7,986 |
|
10,322 |
The following table reconciles our cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets and the cash, cash equivalents and restricted cash reported on our Condensed Consolidated Statements of Cash Flows as of
|
(In thousands) |
|
|
|
|
Cash and cash equivalents |
$ 81,381 |
|
$ 375,461 |
|
Restricted cash, current portion, included in Prepaid expenses and other current assets |
3,474 |
|
20,443 |
|
Restricted cash, net of current portion, included in Other long-term assets |
98 |
|
2 |
|
Total cash, cash equivalents and restricted cash shown in Condensed Consolidated Statements of Cash Flows |
$ 84,953 |
|
$ 395,906 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/maxeon-solar-technologies-announces-second-quarter-2024-financial-results-302236538.html
SOURCE
