Maxeon Solar Technologies Announces First Quarter 2022 Financial Results
Maxeon Solar Technologies (NASDAQ:MAXN) reported Q1 2022 results, showing a revenue increase to $223.1 million, up 35% year-over-year, despite a gross loss of $12.9 million. European module sales surged over 75%, while U.S. utility-scale shipments began. The company is ramping up production with Maxeon 6 and Performance lines, targeting profitability by 2023. The Q2 outlook suggests revenue between $215 million and $230 million, with anticipated shipments of 460-490 MW, but expects a gross loss between $15 million and $25 million due to supply chain challenges.
- Revenue increased to $223.1 million, up 35% year-over-year.
- European module sales rose over 75%, with AC module sales exceeding 40% in some countries.
- First U.S. utility-scale shipments successfully delivered.
- Reported a gross loss of $12.9 million.
- Projected gross loss for Q2 2022 between $15 million and $25 million.
- Continued supply chain challenges impacting production and costs.
--Record European DG Volume with new Beyond the Panel launches--
--First US Utility-Scale shipments delivered successfully--
SINGAPORE, May 26, 2022 /PRNewswire/ -- Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) ("Maxeon" or "the Company"), a global leader in solar innovation and channels, today announced its financial results for the first quarter ended April 3, 2022.
Maxeon's Chief Executive Officer Jeff Waters noted, "We kicked off 2022 with another record DG performance in Europe and the unveiling of our SunPower One ecosystem which we will start launching in various regions across the globe this year. Our module sales were up over
While supply chain conditions remain challenging, we remain focused on executing on our key transformation initiatives - specifically the ramping of our Maxeon 6 and Performance line for the US market which are critical for enabling our return to profitability in 2023. Maxeon 6 is scheduled to be fully ramped to 500MW in the second half of 2022 and Performance line capacity for the US market is scheduled to be fully ramped in the first half of 2023. As these projects near completion, our focus will pivot to Maxeon's next transformation steps led by Maxeon 7, the ramp of storage sales, direct US residential market entry and North America capacity expansion."
Selected Q1 Unaudited Financial Summary | |||||
(In thousands, except shipments) | Fiscal Q1 2022 | Fiscal Q4 2021 | Fiscal Q1 2021 | ||
Shipments, in MW | 488 | 577 | 379 | ||
Revenue | $ 223,081 | $ 221,479 | $ 165,417 | ||
Gross (loss) profit (1) | (12,964) | (10,545) | 1,051 | ||
GAAP Operating expenses | 37,410 | 35,518 | 37,207 | ||
GAAP Net loss attributable to the stockholders(1) | (59,112) | (73,332) | (38,814) | ||
Capital expenditures | 21,682 | 37,393 | 10,958 | ||
Other Financial Data(1), (2) | |||||
(In thousands) | Fiscal Q1 2022 | Fiscal Q4 2021 | Fiscal Q1 2021 | ||
Non-GAAP Gross (loss) profit | $ (12,542) | $ (10,056) | $ 1,274 | ||
Non-GAAP Operating expenses | 34,367 | 33,423 | 35,067 | ||
Adjusted EBITDA(3) | (33,590) | (32,777) | (23,520) | ||
(1) The Company's GAAP and Non-GAAP results were impacted by the effects of certain items. Refer to "Supplementary information affecting | |||||
(2) The Company's use of Non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP | |||||
(3) The Adjusted EBITDA for three months ended January 2, 2022 and April 4, 2021 did not contain an adjustment for equity in losses of | |||||
Supplementary information affecting GAAP and Non-GAAP results
Three Months Ended | ||||||
(In thousands) | Financial | April 3, 2022 | January 2, 2022 | April 4, 2021 | ||
Incremental cost of above market | Cost of revenue | 7,388 | 11,542 | 11,618 | ||
Loss on ancillary sales of excess | Cost of revenue | 8,328 | 2,621 | 1,720 | ||
(1) Relates to the difference between our contractual cost for the polysilicon under the long-term fixed supply agreements with our supplier and the | ||||||
(2) In order to reduce inventory and improve working capital, we have periodically elected to sell polysilicon inventory procured under the long-term | ||||||
(3) For the three months ended April 3, 2022, the loss on ancillary sales of excess polysilicon also included | ||||||
Second Quarter 2022 Outlook
For the second quarter of 2022, the Company anticipates the following results:
(In millions, except shipments) | Outlook | |
Shipments, in MW | 460 - 490 MW | |
Revenue | ||
Gross loss(1) | ||
Non-GAAP gross loss(1), (2) | ||
Operating expenses | ||
Non-GAAP operating expenses(3) | ||
Adjusted EBITDA(1), (4) | ||
Capital expenditures(5) | ||
Out-of-market polysilicon cost(1) | ||
(1) Outlook for Gross loss, Non-GAAP gross loss and Adjusted EBITDA includes out-of-market polysilicon cost. | ||
(2) The Company's Non-GAAP gross loss is impacted by the effects of adjusting for stock-based compensation expense. The Company does not | ||
(3) The Company's Non-GAAP operating expenses are impacted by the effects of adjusting for stock-based compensation expense and restructuring | ||
(4) The Company cannot provide a reconciliation between its Adjusted EBITDA projection and the most directly comparable GAAP measures without | ||
(5) Capital expenditures are directed mainly to upgrading production to Maxeon 6 in our Malaysia factory, the purchase of cell and module equipment for | ||
These anticipated results for the second quarter of 2022 are preliminary, unaudited and represent the most current information available to management. The Company's business outlook is based on management's current views and estimates with respect to market conditions, production capacity, the uncertainty of the continuing impact of the COVID-19 pandemic, and the global economic environment. Please refer to Forward Looking Statements section below. Management's views and estimates are subject to change without notice.
For more information
Maxeon's first quarter 2022 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-K and Company's other filings are also available online from the Securities and Exchange Commission at www.sec.gov.
Conference Call Details
The Company will hold a conference call on May 26, 2022, at 5:30 PM U.S. ET / May 27, 2022, at 5:30 AM Singapore Time, to discuss results and to provide an update on the business. Conference call details are below.
Dial-in:
North America (toll-free): +1 (833) 301-1154
International: +1 (914) 987-7395
Singapore: +65 3165-4607
Conference ID: 6144536
A simultaneous webcast of the conference call will be available on Maxeon's website at https://corp.maxeon.com/events-and-presentations.
Listeners should dial in or log on 10 minutes in advance. A replay will be available online within 24 hours after the event.
A replay of the conference call may be accessed by phone at the following numbers until June 2, 2022. To access the replay, please reference the following numbers:
North America (toll-free): +1 (855) 859-2056 / +1 (800) 585-8367
International: +1 (404) 537-3406
Conference ID: 6144536
About Maxeon Solar Technologies
Maxeon Solar Technologies Ltd (NASDAQ: MAXN) is Powering Positive ChangeTM. Headquartered in Singapore, Maxeon designs and manufactures Maxeon® and SunPower® brand solar panels, and has sales operations in more than 100 countries, operating under the SunPower brand in certain countries outside the United States. The Company is a leader in solar innovation with access to over 1,000 patents and two best-in-class solar panel product lines. Maxeon products span the global rooftop and solar power plant markets through a network of more than 1,400 trusted partners and distributors. A pioneer in sustainable solar manufacturing, Maxeon leverages a 35-year history in the solar industry and numerous awards for its technology. For more information about how Maxeon is Powering Positive ChangeTM visit us at https://www.maxeon.com/, on LinkedIn and on Twitter.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) our expectations regarding pricing trends, demand and growth projections; (b) potential disruptions to our operations and supply chain that may result from epidemics, natural disasters or military conflicts, including the duration, scope and impact on the demand for our products, market disruptions from the war in Ukraine and the pace of recovery from the COVID-19 pandemic; (c) anticipated product launch timing and our expectations regarding ramp, customer acceptance and demand, upsell and expansion opportunities; (d) our expectations and plans for short- and long-term strategy, including our anticipated areas of focus and investment, market expansion, product and technology focus, and projected growth and profitability; (e) our ability to meet short term and long term material cash requirements including our obligations under the long-term polysilicon supply agreement, our ability to complete an equity or debt offering at favorable terms, if at all, and our overall liquidity, substantial indebtedness and ability to obtain additional financing; (f) our technology outlook, including anticipated fab utilization and expected ramp and production timelines for the Company's Maxeon 5 and 6, next-generation Maxeon 7 and Performance line solar panels, expected cost reductions, and future performance; (g) our strategic goals and plans, including partnership discussions with respect to the Company's next-generation technology, and our relationships with existing customers, suppliers and partners, and our ability to achieve and maintain them; (h) our expectations regarding our future performance and revenues resulting from contracted orders, bookings, backlog, and pipelines in our sales channels; (i) our second quarter fiscal year 2022 guidance, including shipments, revenue, gross profit, non-GAAP gross profit, operating expenses, non-GAAP operating expenses, Adjusted EBITDA, capital expenditures, out-of-market polysilicon cost, and related assumptions; and (j) our projected effective tax rate and changes to the valuation allowance related to our deferred tax assets.
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, including regulatory and other challenges that may arise; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects, customers and operations; (3) our ability to manage supply chain cost increases and operating expenses; (4) potential disruptions to our operations and supply chain that may result from damage or destruction of facilities operated by our suppliers, difficulties in hiring or retaining key personnel, epidemics, natural disasters, including impacts of the COVID-19 pandemic, or the war in Ukraine; (5) our ability to manage our key customers and suppliers; (6) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (7) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (8) changes in regulation and public policy, including the imposition and applicability of tariffs; (9) our ability to comply with various tax holiday requirements as well as regulatory changes or findings affecting the availability of economic incentives promoting use of solar energy and availability of tax incentives or imposition of tax duties; (10) fluctuations in our operating results; (11) appropriately sizing our manufacturing capacity and containing manufacturing and logistics difficulties that could arise; (12) unanticipated impact to customer demand and sales schedules due, among other factors, to the spread of COVID-19, the war in Ukraine and other environmental disasters; (13) challenges managing our acquisitions, joint ventures and partnerships, including our ability to successfully manage acquired assets and supplier relationships; (14) reaction by securities or industry analysts to our quarterly guidance which, in combination with our results of operations, may cause them to cease publishing research or reports about us, or adversely change their recommendations regarding our ordinary shares, which may negatively impact the market price of our ordinary shares and volume of our stock trading; and (15) unpredictable outcomes resulting from our litigation activities or other disputes. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission ("SEC") from time to time, including our most recent report on Form 20-F, particularly under the heading "Risk Factors". Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://corp.maxeon.com/investor-relations. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
Use of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP gross profit (loss), non-GAAP operating expenses and earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for stock-based compensation, restructuring charges (credits) and fees, remeasurement loss (gain) on prepaid forward and physical delivery forward, loss on extinguishment of debt, impairment and equity in losses of unconsolidated investees ("Adjusted EBITDA") to supplement our consolidated financial results presented in accordance with GAAP. Non-GAAP gross profit (loss) is defined as gross profit (loss) excluding stock-based compensation. Non-GAAP operating expenses is defined as operating expenses excluding stock-based compensation and restructuring charges (credits) and fees.
We believe that non-GAAP gross profit (loss), 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 profit (loss), 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.
- Restructuring charges (credits) and fees. We incur restructuring charges (credits) 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 (credits) and fees 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 (credits) and fees 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.
- 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 on September 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 (gain) contribute to a meaningful evaluation of our past operating performance. - Impairment. This relates to the impairment of assets recorded by our equity method investee, Huansheng Photovoltaic (Jiangsu) Co., Ltd ("Huansheng JV"). Asset impairment is excluded from our Adjusted EBITDA financial measure as it is non-cash in nature and not reflective of ongoing operating results. As such, management believes that it is appropriate to exclude such charges as they do not contribute to a meaningful evaluation of our past operating performance.
- Equity in losses of unconsolidated investees. This relates to the loss on our unconsolidated equity investment Huansheng JV. 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) | April 3, 2022 | January 2, 2022 | April 4, 2021 | ||
Gross (loss) profit | $ (12,964) | $ (10,545) | $ 1,051 | ||
Stock-based compensation | 422 | 489 | 223 | ||
Non-GAAP Gross (loss) profit | (12,542) | (10,056) | 1,274 | ||
GAAP Operating expenses | 37,410 | 35,518 | 37,207 | ||
Stock-based compensation | (2,275) | (1,545) | (1,281) | ||
Restructuring charges and fees | (768) | (550) | (859) | ||
Non-GAAP Operating expenses | 34,367 | 33,423 | 35,067 | ||
GAAP Net loss attributable to the stockholders | (59,112) | (73,332) | (38,814) | ||
Interest expense, net | 4,786 | 6,511 | 7,612 | ||
Provision for (benefit from) income taxes | 825 | (1,016) | 2,262 | ||
Depreciation | 12,898 | 11,930 | 9,217 | ||
Amortization | 90 | 185 | 65 | ||
EBITDA | (40,513) | (55,722) | (19,658) | ||
Impairment | — | 5,058 | — | ||
Stock-based compensation | 2,697 | 2,034 | 1,504 | ||
Restructuring charges (credits) and fees | 768 | (378) | 859 | ||
Remeasurement loss (gain) on prepaid forward | 397 | 9,827 | (8,355) | ||
Equity in losses of unconsolidated investees | 3,061 | 6,404 | 2,130 | ||
Adjusted EBITDA(1) | (33,590) | (32,777) | (23,520) | ||
(1) The Adjusted EBITDA for three months ended January 2, 2022 and April 4, 2021 did not contain an adjustment for equity in losses of | |||||
Reconciliation of Non-GAAP Outlook | ||||
(In millions) | Outlook | |||
Operating expenses | ||||
Stock-based compensation | (2) | |||
Restructuring charges and fees | (1) | |||
Non-GAAP operating expenses | ||||
©2022 Maxeon Solar Technologies, Ltd. All rights reserved. MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd. Visit https://corp.maxeon.com/trademarks for more information.
MAXEON SOLAR TECHNOLOGIES, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except for shares data) | |||
As of | |||
April 3, 2022 | January 2, 2022 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 176,679 | $ 166,542 | |
Restricted short-term marketable securities | 1,049 | 1,079 | |
Accounts receivable, net | 52,113 | 39,730 | |
Inventories | 262,773 | 212,820 | |
Advances to suppliers, current portion | 39,311 | 51,045 | |
Prepaid expenses and other current assets | 72,080 | 61,904 | |
Total current assets | $ 604,005 | $ 533,120 | |
Property, plant and equipment, net | 394,688 | 386,630 | |
Operating lease right of use assets | 16,027 | 15,397 | |
Other intangible assets, net | 331 | 420 | |
Advances to suppliers, net of current portion | 1,407 | 716 | |
Deferred tax assets | 5,092 | 5,183 | |
Other long-term assets | 78,257 | 115,077 | |
Total assets | $ 1,099,807 | $ 1,056,543 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 259,992 | $ 270,475 | |
Accrued liabilities | 91,452 | 78,680 | |
Contract liabilities, current portion | 50,782 | 44,059 | |
Short-term debt | 48,008 | 25,355 | |
Operating lease liabilities, current portion | 2,742 | 2,467 | |
Total current liabilities | $ 452,976 | $ 421,036 | |
Long-term debt | 74 | 213 | |
Contract liabilities, net of current portion | 131,064 | 58,994 | |
Operating lease liabilities, net of current portion | 13,815 | 13,464 | |
Convertible debt | 188,698 | 145,772 | |
Deferred tax liabilities | 1,150 | 1,150 | |
Other long-term liabilities | 57,822 | 61,039 | |
Total liabilities | $ 845,599 | $ 701,668 | |
Commitments and contingencies | |||
Equity: | |||
Common stock, no par value (44,601,070 and 44,246,603 issued and outstanding as of | $ — | $ — | |
Additional paid-in capital | 573,536 | 624,261 | |
Accumulated deficit | (311,951) | (262,961) | |
Accumulated other comprehensive loss | (12,647) | (11,844) | |
Equity attributable to the Company | 248,938 | 349,456 | |
Noncontrolling interests | 5,270 | 5,419 | |
Total equity | 254,208 | 354,875 | |
Total liabilities and equity | $ 1,099,807 | $ 1,056,543 | |
MAXEON SOLAR TECHNOLOGIES, LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) | |||
Three Months Ended | |||
April 3, 2022 | April 4, 2021 | ||
Revenue | $ 223,081 | $ 165,417 | |
Cost of revenue | 236,045 | 164,366 | |
Gross (loss) profit | (12,964) | 1,051 | |
Operating expenses: | |||
Research and development | 13,894 | 13,030 | |
Sales, general and administrative | 23,751 | 23,318 | |
Restructuring (credits) charges | (235) | 859 | |
Total operating expenses | 37,410 | 37,207 | |
Operating loss | (50,374) | (36,156) | |
Other (expense) income, net | |||
Interest expense, net | (4,786) | (7,612) | |
Other, net | (151) | 9,444 | |
Other (expense) income, net | (4,937) | 1,832 | |
Loss before income taxes and equity in losses of unconsolidated investees | (55,311) | (34,324) | |
Provision for income taxes | (825) | (2,262) | |
Equity in losses of unconsolidated investees | (3,061) | (2,130) | |
Net loss | (59,197) | (38,716) | |
Net loss (income) attributable to noncontrolling interests | 85 | (98) | |
Net loss attributable to the stockholders | $ (59,112) | $ (38,814) | |
Net loss per share attributable to stockholders: | |||
Basic | $ (1.45) | $ (1.14) | |
Diluted | (1.45) | (1.14) | |
Weighted average shares used to compute net loss per share: | |||
Basic | 40,650 | 34,123 | |
Diluted | 40,650 | 34,123 | |
MAXEON SOLAR TECHNOLOGIES, LTD. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (In thousands) | |||||||||||||||
Shares | Amount | Additional | Accumulated | Accumulated | Equity | Noncontrolling Interests | Total Equity | ||||||||
Balance at January 2, 2022 | 44,247 | $ — | $ 624,261 | $ (262,961) | $ (11,844) | $ 349,456 | $ 5,419 | $ 354,875 | |||||||
Effect of adoption of ASU 2020-06 | — | — | (52,189) | 10,122 | — | (42,067) | — | (42,067) | |||||||
Net loss | — | — | — | (59,112) | — | (59,112) | (85) | (59,197) | |||||||
Issuance of common stock for stock-based | 354 | — | (2) | — | — | (2) | — | (2) | |||||||
Distribution to noncontrolling interest | — | — | — | — | — | — | (64) | (64) | |||||||
Recognition of stock-based compensation | — | — | 1,466 | — | — | 1,466 | — | 1,466 | |||||||
Other comprehensive income | — | — | — | — | (803) | (803) | — | (803) | |||||||
Balance at April 3, 2022 | 44,601 | $ — | $ 573,536 | $ (311,951) | $ (12,647) | $ 248,938 | $ 5,270 | $ 254,208 | |||||||
Shares | Amount | Additional | Accumulated | Accumulated | Equity | Noncontrolling | Total Equity | ||||||||
Balance at January 3, 2021 | 33,995 | $ — | $ 451,474 | $ (8,441) | $ (10,391) | $ 432,642 | $ 6,645 | $ 439,287 | |||||||
Net loss | — | — | — | (38,814) | — | (38,814) | 98 | (38,716) | |||||||
Issuance of common stock for stock-based | 229 | — | (2,550) | — | — | (2,550) | — | (2,550) | |||||||
Recognition of stock-based compensation | — | — | 1,570 | — | — | 1,570 | — | 1,570 | |||||||
Other comprehensive income | — | — | — | — | (79) | (79) | — | (79) | |||||||
Balance at April 4, 2021 | 34,224 | $ — | $ 450,494 | $ (47,255) | $ (10,470) | $ 392,769 | $ 6,743 | $ 399,512 | |||||||
MAXEON SOLAR TECHNOLOGIES, LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) | |||
Three Months Ended | |||
April 3, 2022 | April 4, 2021 | ||
Cash flows from operating activities | |||
Net loss | $ (59,197) | $ (38,716) | |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 12,988 | 9,292 | |
Stock-based compensation | 2,697 | 1,504 | |
Non-cash interest expense | 1,336 | 3,494 | |
Equity in losses of unconsolidated investees | 3,061 | 2,130 | |
Deferred income taxes | 91 | (919) | |
Loss on disposal of property, plant and equipment | 213 | — | |
Remeasurement loss (gain) on prepaid forward | 397 | (8,355) | |
Other, net | 430 | 1,047 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (12,821) | 15,203 | |
Contract assets | 532 | 311 | |
Inventories | (50,058) | (29,793) | |
Prepaid expenses and other assets | (5,172) | (446) | |
Operating lease right-of-use assets | 627 | 598 | |
Advances to suppliers | 11,043 | 9,405 | |
Accounts payable and other accrued liabilities | 30,344 | (17,464) | |
Contract liabilities | 78,805 | 2,612 | |
Operating lease liabilities | (631) | (726) | |
Net cash provided by (used in) operating activities | 14,685 | (50,823) | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (21,682) | (10,958) | |
Cash paid for disposal of property, plant and equipment | (11) | — | |
Net cash used in investing activities | (21,693) | (10,958) | |
Cash flows from financing activities | |||
Proceeds from debt | 66,318 | 50,083 | |
Repayment of debt | (43,598) | (62,816) | |
Repayment of finance lease obligations | (178) | (180) | |
Payment for tax withholding obligations for issuance of common stock upon vesting of restricted stock units | (2) | (2,550) | |
Distribution to noncontrolling interest | (64) | — | |
Net cash provided by (used in) financing activities | 22,476 | (15,463) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 64 | 105 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 15,532 | (77,139) | |
Cash, cash equivalents and restricted cash, beginning of period | 192,232 | 209,572 | |
Cash, cash equivalents and restricted cash, end of period | $ 207,764 | $ 132,433 | |
Non-cash transactions | |||
Property, plant and equipment purchases funded by liabilities | $ 31,948 | $ 23,537 | |
Right-of-use assets obtained in exchange for lease obligations | 1,257 | — | |
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 April 3, 2022 and April 4, 2021:
(In thousands) | April 3, 2022 | April 4, 2021 | |
Cash and cash equivalents | $ 176,679 | $ 131,417 | |
Restricted cash, current portion, included in Prepaid expenses and other current assets | 7,009 | 489 | |
Restricted cash, net of current portion, included in Other long-term assets | 24,076 | 527 | |
Total cash, cash equivalents and restricted cash shown in Condensed Consolidated Statements of Cash Flows | $ 207,764 | $ 132,433 |
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SOURCE Maxeon Solar Technologies, Ltd.
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