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| 8-K - SOLAR POWER, INC. 8-K - Solar Power, Inc. | a50927272.htm |
Exhibit 99.1
SPI Solar Announces Second-Quarter 2014 Financial Results
ROSEVILLE, Calif.--(BUSINESS WIRE)--August 19, 2014--SPI Solar (“SPI”) (SOPW:OTCBB), a vertically-integrated photovoltaic (PV) solar developer, today announced its results for the second quarter ended June 30, 2014.
Second-Quarter 2014 Results:
Total net sales for the second quarter of 2014 were $6.3 million, compared with $4.2 million for the second quarter of 2013. For the first quarter of 2014, SPI Solar reported total net sales of $3.6 million.
Total cost of goods sold for the second quarter of 2014 was $5.8 million, compared with $3.3 million for the second quarter of 2013. Total cost of goods sold for the first quarter of 2014 was $3.4 million.
Total operating expenses for the second quarter of 2014 were $1.2 million, compared with $7.4 million for the second quarter of 2013. Operating expenses for the first quarter of 2014 were $1.3 million.
During the second quarter of 2014, SPI Solar entered into an agreement with a non-U.S. investor and issued an $11 million convertible bond, bearing no interest. The convertible bond includes a $10.3 million beneficial conversion feature, which was recognized separately at issuance, resulting in a discount on the convertible bond, which will be amortized into interest expense. Interest expense of $0.7 million was recorded during the second quarter of 2014.
Net loss for the second quarter of 2014 was $1.3 million, or ($0.01) per basic and diluted share. This compared with a net loss of $6.8 million, or ($0.03) per basic and diluted share, for the second quarter of 2013, and with a net loss of $0.8 million, or ($0.00) per basic and diluted share, for the first quarter of 2014.
"During the quarter, we made significant progress in strengthening SPI as a platform for growth," said Xiaofeng Peng, Chairman of SPI. "Following the close of the quarter, we completed the previously announced private placement of $21.75 million and entered into a new private placement agreement for an additional $25.0 million. Importantly, these placements will dramatically improve our financial position and balance sheet to support our ambitious global growth strategy,” continued Peng. "In addition, we continued to work toward resuming growth of our global pipeline of solar PV projects, in conjunction with the roll out of our innovative Yes!® Solar solution targeting the high-growth residential segment,” Peng added. "Finally, we established for SPI during this quarter a strong foundation for a number of other important initiatives currently underway which we plan to capitalize on in the coming quarters."
Second-Quarter 2014 and Recent Updates:
- Announced joint venture agreement with WIRCON GmbH to develop solar PV projects in the UK
- Announced that the company had entered into a definitive purchase agreement for the sale of $25.0 million of common stock in a private placement
- Entered into an agreement through SPI Solar’s wholly-owned subsidiary, Xinyu Xinwei New Energy Co., LTD. (“Xinwei”), to build and develop a 50 megawatt photovoltaic project in Fenyi County, China; subsequently announced an agreement for the sale and transfer of this project
- Announced that Xinwei had entered into an agreement for the proposed construction of a 21 megawatt project in Jiangxi Province, China
- Completed a $21.75 million private placement
- Showcased the company’s Yes! Solar brand of high-quality, low-cost solar kits for residential deployment at the Intersolar North America 2014 trade show.
Cash and cash equivalents at June 30, 2014 were $5.9 million, compared with $1.0 million at December 31, 2013.
About SPI Solar (SOPW:OTCBB):
SPI Solar (“SPI”) (Solar Power, Inc.) is a vertically-integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities and turnkey residential solar solutions to its business, government and utility customers. For additional information visit: www.spisolar.com.
Safe Harbor Statement:
This release may contain certain “forward-looking statements” relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as “believes", “expects” or similar expressions. These statements involve known and unknown risks and uncertainties, including, but are not limited to, the ability of SPI Solar to complete its private placement of shares of common stock, generate new EPC projects and its ability to obtain funding for such projects, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
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SOLAR POWER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share data) |
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June 30, |
December 31, | |||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,854 | $ | 1,031 | ||||
| Accounts receivable, net of allowance of $5,887, respectively | 4,348 | 6,260 | ||||||
| Accounts receivable, related party | 3,855 | 3,905 | ||||||
| Notes receivable | - | 8,450 | ||||||
| Inventories, net | 180 | 23 | ||||||
| Prepaid expenses and other current assets | 3,006 | 4,458 | ||||||
| Total current assets | 17,243 | 24,127 | ||||||
| Intangible assets | 846 | 1,132 | ||||||
| Restricted cash | 160 | 400 | ||||||
| Accounts receivable, noncurrent | 11,345 | 12,349 | ||||||
| Notes receivable, noncurrent | 13,668 | 13,668 | ||||||
| Notes receivable, noncurrent, related party | 8,450 | - | ||||||
| Other assets, noncurrent, related party | 998 | - | ||||||
| Investment in affiliates | 8,912 | 7,536 | ||||||
| Property, plant and equipment at cost, net | 11,226 | 11,752 | ||||||
| Total assets | $ | 72,848 | $ | 70,964 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,325 | $ | 3,919 | ||||
| Accounts payable, related party | 38,665 | 50,907 | ||||||
| Line of credit | - | 4,250 | ||||||
| Convertible bond, net | 1,369 | - | ||||||
| Accrued liabilities | 738 | 741 | ||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | - | 862 | ||||||
| Total current liabilities | 44,097 | 60,679 | ||||||
| Financing and capital lease obligations | 11,346 | 11,730 | ||||||
| Other liabilities | 1,415 | 1,422 | ||||||
| Total liabilities | 56,858 | 73,831 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, par $0.0001, 20,000,000 shares authorized; none issued and outstanding | - | - | ||||||
| Common stock, par $0.0001, 1,000,000,000 and 250,000,000 shares authorized; 238,839,456 and 198,214,456 shares issued and outstanding, respectively | 24 | 20 | ||||||
| Additional paid in capital | 74,547 | 53,376 | ||||||
| Accumulated other comprehensive loss | (337 | ) | (189 | ) | ||||
| Accumulated deficit | (58,244 | ) | (56,074 | ) | ||||
| Total stockholders’ equity (deficit) | 15,990 | (2,867 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 72,848 | $ | 70,964 | ||||
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SOLAR POWER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) |
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| For the Six Months Ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net sales | $ | 9,942 |
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$ | 5,965 | |||
| Total net sales | 9,942 | 5,965 | ||||||
| Cost of goods sold | 9,184 | 4,481 | ||||||
| Provision for losses on contracts | - | 85 | ||||||
| Total cost of goods sold | 9,184 | 4,566 | ||||||
| Gross profit | 758 | 1,399 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 2,078 | 8,951 | ||||||
| Sales, marketing and customer service | 358 | 1,178 | ||||||
| Engineering, design and product management | - | 757 | ||||||
| Total operating expenses | 2,436 | 10,886 | ||||||
| Operating loss | (1,678 | ) | (9,487 | ) | ||||
| Other (expense) income: | ||||||||
| Interest expense | (1,193 | ) | (2,013 | ) | ||||
| Interest income | 770 | 1,390 | ||||||
| Other (expense) income, net | (69 | ) | 247 | |||||
| Total other expense, net | (492 | ) | (376 | ) | ||||
| Loss before income taxes | (2,170 | ) | (9,863 | ) | ||||
| Provision for income taxes | - | 111 | ||||||
| Net loss | $ | (2,170 | ) | $ | (9,974 | ) | ||
| Net loss per common share: | ||||||||
| Basic and Diluted | $ | (0.01 | ) | $ | (0.05 | ) | ||
| Weighted average number of common shares used in computing per share amounts: | ||||||||
| Basic and Diluted | 201,322,191 | 198,214,456 | ||||||
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SOLAR POWER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) |
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| For the three Months Ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net sales | $ | 6,329 |
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$ | 4,199 | |||
| Total net sales | 6,329 | 4,199 | ||||||
| Cost of goods sold | 5,769 |
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3,194 | |||||
| Provision for losses on contracts | - | 85 | ||||||
| Total cost of goods sold | 5,769 | 3,279 | ||||||
| Gross profit | 560 | 920 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 1,110 | 6,691 | ||||||
| Sales, marketing and customer service | 40 | 439 | ||||||
| Engineering, design and product management | - | 309 | ||||||
| Total operating expenses | 1,150 | 7,439 | ||||||
| Operating loss | (590 | ) | (6,519 | ) | ||||
| Other (expense) income: | ||||||||
| Interest expense | (1,072 | ) | (1,008 | ) | ||||
| Interest income | 360 | 851 | ||||||
| Other expense, net | (38 | ) | (55 | ) | ||||
| Total other expense, net | (750 | ) | (212 | ) | ||||
| Loss before income taxes | (1,340 | ) | (6,731 | ) | ||||
| Provision for income taxes | - | 102 | ||||||
| Net loss | $ | (1,340 | ) | $ | (6,833 | ) | ||
| Net loss per common share: | ||||||||
| Basic and Diluted | $ | (0.01 | ) | $ | (0.03 | ) | ||
| Weighted average number of common shares used in computing per share amounts: | ||||||||
| Basic and Diluted | 204,395,775 | 198,214,456 | ||||||
CONTACT:
Solar Power, Inc.
Roger Yu, 800-548-8767