SunPower Reports Fourth Quarter and Full Year 2023 Results

by

in

Added 16,000 customers in Q4, 75,900 new customers in FY 2023
Reported Q4 revenue of $357 million; FY 2023 revenue of $1.7 billion
Reported Q4 GAAP Net Loss of ($124) million and Adjusted EBITDA of ($68) million; FY 2023 GAAP Net Loss of ($247) million and Adjusted EBITDA of ($84) million
Announced $175 million of additional capital and $25 million of additional revolving debt capacity

RICHMOND, Calif., Feb. 15, 2024 /PRNewswire/ — SunPower Corp. (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced financial results for the fourth quarter and full year ending December 31, 2023.

“With the recent infusion of capital, SunPower is focused on driving positive free cash flow and profitability,” said Peter Faricy, SunPower CEO. “This is a new opportunity for SunPower to reinforce our strong foundation as we continue to navigate an uncertain market in early 2024. With this funding and industry tailwinds of extended tax credits and lower equipment costs, we believe SunPower is positioned to execute on maximizing the value proposition of solar and storage for our customers.”  

On February 15, the company announced it raised $175 million in new capital financing from TotalEnergies and Global Infrastructure Partners, including $45 million of prior bridge financing, $80 million in new investment, and $50 million that is available to be borrowed upon the satisfaction of certain conditions. As a part of the transaction, the Company also received $25 million of revolving debt capacity as part of new long-term waivers from key financial partners.

$48 million of the Adjusted EBITDA delta between guidance and our final reporting can be attributed to restatement impacts and items we believe are one-time charges or not expected to recur,” said Beth Eby, SunPower CFO. “For 2024, we are focused on profitability and free cash flow, and we expect to be cash flow positive in the second half of 2024 and beyond.  We will provide additional guidance later in the year, after we assess the implications of the recapitalization and restructuring.” 

FY 2024 GUIDANCE

Net Loss (GAAP)

($160) million – ($80) million

Gross Margin (Non-GAAP)

17% – 19%

Free Cash Flow1

Positive in second half 2024

1 Cash from operations minus capital expenditures

 

Financial Highlights

($ Millions, except percentages, residential customers, and per-share data)

4th Quarter 2023

4th Quarter 2022

Fiscal Year 2023

Fiscal Year 2022

GAAP revenue from continuing operations

$356.9

$498.0

$1,685.2

$1,741.9

GAAP gross margin from continuing operations

3.1 %

22.8 %

14.1 %

23.1 %

GAAP net (loss) income from continuing operations

$(115.6)

$5.1

$(227.1)

$93.7

GAAP net (loss) income from continuing operations per diluted share

$(0.66)

$0.03

$(1.30)

$0.54

Non-GAAP revenue from continuing operations1, 4

$361.3

$498.0

$1,689.7

$1,749.2

Non-GAAP gross margin from continuing operations1, 3, 4

4.5 %

23.0 %

14.6 %

23.7 %

Non-GAAP net (loss) income from continuing operations1, 3, 4

$(89.5)

$19.5

$(158.5)

$30.0

Non-GAAP net (loss) income from continuing operations per diluted share1, 3, 4

$(0.51)

$0.11

$(0.91)

$0.17

Adjusted EBITDA1, 3, 4

$(67.6)

$30.6

$(84.2)

$70.0

Residential customers

586,250

427,300

586,250

427,300

Cash2

$87.4

$123.7

$87.4

$123.7

The sale of our C&I Solutions business met the criteria for classification as “discontinued operations” in accordance with GAAP beginning the first quarter of fiscal 2022. For all periods presented, the financial results of C&I Solutions are excluded in the table above.

1 Information about SunPower’s use of non-GAAP financial information, including a reconciliation to GAAP, is provided under “Use of Non-GAAP Financial Measures” below

2 Includes cash, and cash equivalents, excluding restricted cash

3 Beginning in the second quarter of fiscal 2023, we are no longer excluding non-GAAP adjustments related to “Transition Costs” from our non-GAAP results, and have adjusted all comparative periods to reflect the current presentation.

4 Beginning in the second quarter of fiscal 2023, we are no longer excluding non-GAAP adjustments related to “Results of operations of businesses exited/to be exited” from our non-GAAP results, with the exception of certain charges related to our legacy power plant and development projects sold in fiscal 2018 and 2019. All comparative periods have been adjusted to reflect the current presentation.

Earnings Conference Call Information

SunPower will discuss its full year and fourth quarter 2023 financial results on Thursday, Feb. 15 at 8 a.m. ET. Analysts intending to participate in the Q&A session must register for a personal link and dial-in at:  https://register.vevent.com/register/BI49f0f6c1dcda48db936395f3333e1574.

The live audio webcast and supplemental financial information will be available on SunPower’s investor website at http://investors.sunpower.com/events.cfm.

About SunPower

SunPower (NASDAQ:SPWR) is a leading residential solar, storage and energy services provider in North America. SunPower offers solar + storage solutions that give customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. For more information, visit www.sunpower.com.

Forward-Looking Statements

This release includes information that constitutes forward-looking statements. Forward-looking statements often address expected future business and financial performance, and often contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” or “will.” By their nature, forward-looking statements address matters that are subject to risks and uncertainties. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. Examples of such forward-looking statements include, but are not limited to, statements regarding: the Company’s anticipated results, cash flow and financial outlook; expectations regarding growth, demand and our future performance and our ability to capture or meet consumer demand; the Company’s ability to continue as a going concern; expectations regarding our recent recapitalization, including our ability to satisfy conditions precedent to additional funding; our plans and expectations with respect to our strategic partnerships and initiatives; our strategic plans and areas of investment and focus; and our expectations for industry trends and factors, and the impact on our business and strategic plans. 

The anticipated results, financial outlook and other forward-looking statements presented in this release are estimates based on information available to management as of the date of this release and are subject to change. There can be no assurance that the Company’s actual results will not differ from the anticipated results, financial outlook and other forward-looking statements presented in this release. Factors that could cause or contribute to such differences include, but are not limited to the Company’s ability to realize the anticipated benefits of capital received and project financings; the Company’s ability to comply with its financing agreements, including debt covenants or cure any defaults; the Company’s ability to repay its obligations as they come due; and our liquidity, indebtedness, and ability to obtain additional financing for our projects and customers; challenges managing our acquisitions, joint ventures, and partnerships, including our ability to successfully manage acquired assets and supplier relationships; the timing and execution of any restructuring plans;  and the risks and other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023 and the Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2023, and the Company’s other filings with the SEC. These forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. 

©2024 SunPower Corporation. All rights reserved. SUNPOWER, the SUNPOWER logo, SUNPOWER FINANCIAL, MYSUNPOWER and SUNVAULT are trademarks or registered trademarks of SunPower Corporation in the U.S.

 

SUNPOWER CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

December 31, 2023

January 1, 2023

Assets

Current assets:

Cash and cash equivalents

$                     87,424

$                   377,026

Restricted cash and cash equivalents, current portion

1,949

10,668

Short-term investments

132,480

Accounts receivable, net

169,556

169,674

Contract assets

45,638

57,070

Loan receivables held for sale, net

4,467

Inventories

260,909

295,731

Advances to suppliers, current portion

659

12,059

Prepaid expenses and other current assets

258,164

197,811

Total current assets

828,766

1,252,519

Restricted cash and cash equivalents, net of current portion

9,111

18,812

Property, plant and equipment, net

108,198

76,473

Operating lease right-of-use assets

31,290

36,926

Solar power systems leased, net

37,892

41,779

Goodwill

125,998

125,998

Other intangible assets, net

14,018

24,192

Other long-term assets

191,811

186,927

Total assets

$                1,347,084

$                1,763,626

Liabilities and Equity

Current liabilities:

Accounts payable

$                   220,356

$                   243,139

Accrued liabilities

154,589

148,119

Operating lease liabilities, current portion

11,176

11,356

Contract liabilities, current portion

153,466

141,863

Short-term debt

344,332

82,240

Convertible debt, current portion

424,919

Total current liabilities

883,919

1,051,636

Long-term debt

249

308

Operating lease liabilities, net of current portion

23,619

29,347

Contract liabilities, net of current portion

10,553

11,588

Other long-term liabilities

122,075

114,702

Total liabilities

1,040,415

1,207,581

Equity:

Common stock

175

174

Additional paid-in capital

2,858,046

2,855,930

Accumulated deficit

(2,332,763)

(2,085,784)

Accumulated other comprehensive income (loss)

13,996

11,568

Treasury stock, at cost

(233,755)

(226,646)

Total stockholders’ equity

305,699

555,242

Noncontrolling interests in subsidiaries

970

803

Total equity

306,669

556,045

Total liabilities and equity

$                1,347,084

$                1,763,626

 

SUNPOWER CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

THREE MONTHS ENDED

TWELVE MONTHS ENDED

December 31, 2023

January 1, 2023

December 31, 2023

January 1, 2023

Total revenues

$           356,905

$           497,968

$        1,685,222

$        1,741,943

Total cost of revenues

345,926

384,204

1,446,767

1,338,942

Gross profit

10,979

113,764

238,455

403,001

Operating expenses:

Research and development

4,799

5,560

23,960

24,759

Sales, general, and administrative

104,865

92,848

393,026

387,260

Restructuring charges (credits)

6,806

12,679

244

Expense (income) from transition services

agreement, net

79

1,356

109

69

Total operating expenses

116,549

99,764

429,774

412,332

Operating (loss) income

(105,570)

14,000

(191,319)

(9,331)

Other (expense) income, net:

Interest income

490

2,922

2,746

3,200

Interest expense

(9,832)

(6,342)

(28,956)

(21,565)

Other, net

(1,242)

(6,755)

(11,833)

115,405

Other (expense) income, net

(10,584)

(10,175)

(38,043)

97,040

(Loss) income from continuing operations before

income taxes and equity in earnings (losses) of

unconsolidated investees

(116,154)

3,825

(229,362)

87,709

Benefits from (provision for) income taxes

623

1,903

(946)

8,383

Equity in earnings (losses) of unconsolidated investees

(36)

336

3,374

2,272

Net (loss) income from continuing operations

(115,567)

6,064

(226,934)

98,364

(Loss) income from discontinued operations before

income taxes and equity in (losses) earnings of

unconsolidated investees

(7,926)

(1,476)

(20,006)

(51,729)

(Provision for) benefits from income taxes

(363)

(158)

640

Net (loss) income from discontinued operations

(8,289)

(1,634)

(20,006)

(51,089)

Net (loss) income

(123,856)

4,430

(246,940)

47,275

Net (income) loss from continuing operations

attributable to noncontrolling interests

(43)

(1,005)

(167)

(4,676)

Net loss (income) from discontinued operations

attributable to noncontrolling interests

250

Net (income) loss attributable to noncontrolling

interests

(43)

(1,005)

(167)

(4,426)

Net (loss) income from continuing operations

attributable to stockholders

(115,610)

5,059

(227,101)

93,688

Net (loss) income from discontinued operations

attributable to stockholders

(8,289)

(1,634)

(20,006)

(50,839)

Net (loss) income attributable to stockholders

Full story available on Benzinga.com


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *