Recent FSLR transcripts
Associated FSLR filings
| Mitchell Ennis | Manager, IR |
| Mark Widmar | CEO & Director |
| Alexander Bradley | CFO |
| Philip Shen | ROTH Capital Partners |
| Benjamin Kallo | Robert W. Baird & Co. |
| Brian Lee | Goldman Sachs Group |
Good afternoon, everyone, and welcome to the First Solar's Second Quarter 2021 Earnings Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. [Operator Instructions]. I would now like to turn the call over to Mr. Mitch Ennis from First Solar Investor Relations. Mr. begin. may you Ennis,
press for afternoon, technology company thank announced Widmar, our investor.firstsolar.com. issued financial Mark website of quarter Good available presentation us. First on providing by will its for Mark Officer; Today, XXXX Solar's the copy quarter, update. A the a will results. and Alex everyone, you. associated discuss Chief you the and are then and at joining second Alex release Thank press me results guidance With are Bradley, updated and financial begin a Executive today for Chief Officer. provide business Financial XXXX. release
release actual for include management's from to expectations, remarks, open involve differ including, safe Officer. more my uncertainties that current Following and review introduce risks among the and note, contained in cause this of and severity you encourage Widmar, questions. forward-looking pleasure the uncertainties, results duration to statements press call the will presentation call of We effects harbor materially Executive is risks Chief we'll now statements other could pandemic. Mark description. Please It that COVID-XX and for the Mark? to the today's complete a
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a permitting are approximately and to environmental lower map technology level. watt year, market we footprint manufacturing capacity for booked From produce in our our record to we the for Commercially, advantaged CdTe prior competitively intending First our of have satisfactory a Seven incentives existing manufacturing record significant months of gigawatts invest an X.X in production represent annual add is exceeding gigawatts, technology with pleased expected record XXXX. our technology at are X lines a modules. standpoint, government already approval announce To of CdTe into XX.X% samples by record illustrate National our and Additionally, in to forward this Laboratory point, and to during cost Energy production and next-generation fleet. external for modules efficiency factories confirmed submitted gigawatts These were India. module. that road to Solar, are regular will area contingent process Renewable million X.X verification a demand leap per produced a $XXX upon most I'm our our at that the world compared glass
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and discussing will Please before chain supply I to However, turn provide opportunities, X. cost market these COVID-XX near-term first Slide updates.
our operations applicable COVID-XX As Vietnam, to safety adhering United with company and the the to the top a commitment health our Malaysia in steadfast with States, of global and a associates protocols. manufacturing priority,
and elected would remain to working to I associates our date our are local with vaccination on-site associates. also order to immense of have part As this testing Vietnam who like to continuity. gratitude to express for site manufacturing governments in to on manufacturing facilitate effort, maintain we
commitments. your ingenuity and acknowledge we to leadership clearly is plan operational this your While time, resiliency, deliver a challenging incredible
other restrictions COVID-XX While Malaysia operations and chain the of to to government Vietnam plans. production, risks in cases rise manufacturing to maintain present date, and our we implementation permitted been have and and and supply able technology potential
site metrics Delays our government manner. and this who to implementations Vietnam. or But other tool to cure the relates Vietnam installers and we COVID-related X. case relevant at as by in in current our safe work restrictions, execute on travel updates CuRe this resulting U.S.-based reflected as it with agencies continue in from we factory rates international as environment to support our essential both transition the Vietnam the timing in manufacturing continue requires navigate an associates. may well travel impact the As our program, and from Despite increase of third-party performance Slide equipment a uncertainty,
led global to cancellation in Since the logistic cost limited rise. outbreaks the the container reverberated events. issues previously, other providers, across global the and April have and by logistics freight. in due availability, to highlighted shipping increase COVID-XX call, significant remains disruptions caused shipping the have reliability have additionally, global Southeast These port to of and continued Asia, And of have impacts shipments restrictions increase congestion, China challenges, in rates coupled a earnings strong challenging which with transoceanic environment demand As an scheduled market.
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see to impacts the have on continue of expect we adverse for remainder However, results. our seen financial and XXXX to
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vessel constrained elevated availability, use space and ability our to fuel near-term weeks impacting anticipate container secured to on vessels. delays continue We -- cost, average including facilitate X of challenges,
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our disruptive call XXXX our module now has and guidance. a we over we discuss this to be residential of who type quarter second edge. to and financial will in potential and the position to competitive As believe and C&I the seek Alex, competitive turn us with markets, grow presence results the I'll provide
Thanks, Mark.
XXXX a reiterate create like and operating shareholder I'd growth, disciplined financial endeavoring guidance, to balancing Before discussing decision-making framework, and results QX principle core profitability. our through our of liquidity to value
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summary to turning information. discuss sheet cash I'll X, fixed balance and flow Next Slide items
to balance. Our quarter restricted cash, $XXX our cash end prior $X.X compared of increase cash equivalents, at impacting quarter an million billion, marketable securities the balance the several quarter cash and ended with factors
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-- systems clarity guidance sale increased Additionally, end project to accountants. account on we've for the low range our of guidance
increase $XXX end rate. million million Our in $XX gross inbound million margin low increase sales represents decrease expected our in X.X for high in rate an a guidance also is module accounted a partially an previous $XX freight Revised guidance range. inbound $XXX an previous are the expected million. which sales segment million to this of guidance in and and of end due to end $XX Whilst guidance to reduction relative risk offset to shipments reduction costs the and to in range our increase expected low guidance million $XX gigawatt guidance, by due previous our represents the our
result a anticipate we module margin will our of the full As approximately to XX% X gross for these be factors, year. XX%
by to impact reduced in full year percentage total anticipate underutilization will XX to rate margin expect $XX and the our gross And For and of reduce sales segment addition, points. the warranty XX ramp we throughput million. XXXX, we module
clarity our and and guidance reflects remaining due $XXX systems -- recognized of to full revenue year million margin year million anticipate segment quarter low sale to to $XX on systems project economics. aforementioned in a that which million gross the year. Our fourth due range the gross the to remaining we end We a of $XX the of margin, agreement million, the $XXX majority is the guidance the segment increase settlement data increase
guidance million start-up $XXX income start-up gain Our million, million reduced depreciation U.S. and to sale share-based of revised million of the of million, $XX million, American $XXX on range expense development total related expense end expenses of to to ramp $XX to $XXX $XXX $XXX SG&A $XXX revised gross operating reflects $XXX to and production and are to high $XX of $XXX million. operating project throughput of to $XX North includes the anticipated expenses unchanged. million of a $XX We combined and million the million million of businesses million range. and our in O&M of $XXX a decrease $XX margin R&D million million and guidance which million, amortization underutilization, $XXX compensation million and of production
nonoperating to items. Turning
foreign previous interest We to an interest $XX $X interest income other negative expense, to due our and to guidance expect net million, losses. increase million of exchange compared expense net income, higher
million Our tax guidance to million $XXX of $XXX is unchanged.
is to share. guidance per $X.XX share Our revised earnings $X per
EPS XXXX. there As for are guidance impacting our of a number reminder, a items
contribute reduced are utilization, XXXX. $X.XX to driven throughput in on production start-up EPS ramp by to factory expected Firstly, and a expense, upgrades, headwind
historic require remained approximately downtime contribute lower across And to is expected will upgrades to these both in to elevated finally, and sales significantly of weeks Secondly, rate inbound planned which comparison X the fleet, production. levels. freight
recently guidance $XXX range capital by of our $XXX to increased expenditure Our a expansion million, has to revised driven plan by million announced $XXX million.
lastly, the our represents which costs, end our result to XXXX net X to guidance X.X of $X.XX to low billion. high revised guidance a year-end a shipment guidance cash XXXX gigawatts CapEx range range. gigawatt in X.X a and additional And billion $X.XX reduction logistics we As to of of decreased is the
EPS our key year-to-date our to Ohio we current guidance cash of From financial expansion Slide India. delivered announced market. XXXX freight today. XX, remained messages perspective, our started account in Turning of $X.X billion range I'll to announced a position for EPS recently flight from and for the summarize the call and factory strong, we net revised into the Operationally, preparation manufacturing $X.XX,
result is our demand a we X previous which bookings, finally, and gigawatts the capacity earnings Series prepared And record that, the gigawatts level we X.X will at of since high with our call. with a X call will Operator? for As conclude gigawatts net and this of expansion in open optimization our remarks anticipate nameplate XXXX. And of includes existing manufacturing year-to-date reach XX fleet, questions.
Instructions]. [Operator
line of Partners. the from ROTH Shen from Philip comes question first Capital Our
The first COVID situation there. one is the on Vietnam with and Malaysia
you a maybe that maintain point you mentioned a at here. out And available at roll new terms I of how talk some there utilization. to for ability a And are to any nice to future? this secondarily, your is production how guys still the XXXX. and have shutdown think, of impacting updates bunch facility in Mark, and you hard working trend had even the about people utilization ahead? Can you Is expect risk living for so There's then bookings in bookings, time in forth?
you maybe mentioned later could possibly see booked? you think Or I get that you think XXXX? I When X do that do we carry into year? mean, gigawatts. to might expect this booked that
Yes, Phil.
and Malaysia there's requirements -- what's -- time of So countries. And both going fortunately, in to control on essential. got obviously, Malaysia And we've in has we've with the some around all have on comply so deemed been and been cases, movement guess periods there over -- be in of I to orders. been those
try us allow associates make with both all to continues to already sure we to get our started in requirements. of to continue to facilities, our that and local comply operate the vaccinated. So we We've also, the process
able to So most provide expect in here received have both term, of facilities the we'd associates the the shot. of our we'd be the in shot first and near second
of Vietnam number being here trending But well. would a seen the significantly, standards. at that's Vietnam by pretty increase relatively and low X that On as so. one you fatalities most is are I basis, the significant last So weeks over or more that's we've look historical say cases helping the could a relative right?
you imposed to are government quarantine requirement there's run the So to to your on requirements, has going the that extent factory, a site. other made to and continue including
schedule accommodations a we periods there number a be be place where would would time. in of made over for over the able current to a we've then which staff to And got new have time, where come the quarantine. times assets our associates quarantine in for associates So for of period rotate be of through would we'd
a able in phenomenal continue been done that have to hit team I they prepared metrics. remarks, the to to manage, and alluded my we operational job. has So their And
chain, situation. Malaysia our and Vietnam and our both supply here sit I able that's look as in as manage facilities, to we're So current today, own the we across
However, if to and trend run and continue have to we'll assess to our continue ability to things evaluate worse, operate. then
to highlighted our relates as first rollout, then would upgrades environment terms we a both in the job been been enable operate recently Perrysburg started when at and And enable Malaysia completed of CuRe the CuRe able relates as the it's it have which an it to to already challenging enable because of a we've in to Vietnam. have CuRe. upgrades and and to So our -- X would do sequencing have in technology just positioned we Ohio Vietnam the and We've it around we team different to bit -- of performance to rollouts rollout our outstanding it's CuRe, we hit already little situation the continue clearly The CuRe of start when product to some the rollout. , then that released Malaysia some done X to Perrysburg be metrics.
are needed travel And upgrades We and have requirements though, and are and the to the in Vietnam. quarantine roll restrictions out like. reduced there that yet
time. schedule, through in most a and we're But the the working a the try Vietnam, point we situation working given CuRe So of to, alluded that at to rollout to to is that significant that's would risk through we're in be significant but as on it this delayed. keep there still current path one find
be there's about in bookings, lot of the year volume excuse got We that. right to sorry to with of be now X XX. volume incremental about As it we've X.X yes, relates to XXXX close -- get a booked. X adding the we'll gigawatts of still gigawatts factories, XXXX, new And me,
or pipeline large right range engagement probably in that got the gigawatts as as India. like in well very now number customers, we've deals of we U.S. in our a XX with for here got the of something the So
incentive volume highlighted, right programs gigawatts well. permitting that and we that the now working in to got execute India about announcement the that around now that, Subject finalizing we're we've a to government start X final made factory. as we'll As the of we've pipeline the from contracting
significant quarters, expect no there's next I bookings would is engagement see few good. not momentum. the I over lack opportunity. don't a slowdown in least at of So The
this XXXX. to have I out XXXX second year very think of a to and half we're strong booking going help start
the Our of Lee comes BOFA. from next question line from Eric
bookings. the on Congrats
'XX? as still per that comment you're you could specifically, bookings talk ASPs high Is range? the into look you And -- where frame? 'XX-plus into you can $X.XX For booking the $X.XX about time watt that average on
Yes.
call essentially bookings have that you if So at what we they're XXXX, on we for the that was said flat. current our look
down I think they're X%. we said about
And 'XX into profile so deliveries with in we're 'XX has booked even in up pricing, 'XX. flat if have both we we're now at trended 'XX. then you pricing 'XX essentially is as -- currently what right they're what we the if for look at of negotiations actually seeing you in And and go what look from and
momentum. there's a of lot So
support and come we constrained to in up to up are if firm with that capacity X I and think market, 'XX. And capacity volume constrained builds we starts But that look to somewhat out what's at the even relative our still book happening from is the global we That out marketplace. as even firms new standpoint. constrain our pricing doesn't it customers, volume factories. to book again into capacity start up available continue are starts you it the to to new
as get to happy well. requirements have that The that. We an balanced to and as that's return perspective we met we're to project ASP very be said economics prepared to in we look parties, a our remarks, So do at our attracted as both this work -- have to see right?
alluded just have into X if costs. those we balance around the look I'll booked to are call. effectively consideration. bookings everything started And this that thing modifier -- on And and implement to you shipping the the to have that other quarter, earnings this you we at is So we last around say we the
in we the there's mechanism which variable to that. if sales a terms accommodate customer would structure benefited have in that So incremental contract be to way that for that pricing costs be a freight there would the of
in also properly we go bookings we're trying forward. make sure that's reflected gets our So an item it as to that
Ben Our Baird. next question comes from from the Kallo line of
like talk guidance, very small. a low bring went about into bit To Could little a your just you bit assumptions? little what end seems the about that the down
to went costs on What shutdowns of assumptions And any that other ASPs. and as shipping if to about there Can plant do the ASPs say with just far up into is heard what just chain? then us maybe understand I your you or supply to talked on it's then on you kicker costs, the want was more that the ASPs as also then And that you with I you Could what last add like mentioned timing in do to about especially second my into a has you that? are So talk technology. anything has negotiations. where new the question if that? just
Yes, end previous a come guidance guidance. we you the seeing of are had settlement seeing with the change. the range Ben, you're of on is combined low impact not But starting basis, agreement the what On the project through. the that
gross the that million was the and in the line So straight through margin. $XX revenue flows
benefit So that's a to gross margin.
lower we as million on gross the module on side it, you volume down volume margin, freight. look about, so lowered of If the call basically million at the $XX and we're of then end on $XX shipment about or range
so in So $XX inbound. in million million or on had $XX outbound a the range as million risk. the about We it impacted quarter $XX freight, million about $XX rate, sales
consolidated forget impact down again, that this based you're of coming of seeing net $XX on settlement we're having the it down $XX why So a off not the about significantly. of million. But you the impact range, agreement had That's million. come don't
customers starting with up the even what but chain. to chain. and with are there's we'll to the crystalline we first we and seeing issues some in but sure to product can you're to on much around -- now the CuRe U.S. point only is next-gen in -- Whether certainty. here creating commitment in X like with able and to Plus is customer EU for ASPs capabilities On starting emerging they there's I'll ASPs, before that time. Series negotiating do, their supply And their not U.K. up. firm there's that's product -- come places of and it's secondly, X we're have First to Series starting And that, the given and uncertainty and anxiety Solar have currently we Yes, ASPs the yes, certainty see right so our talk to the separate supply see wants this technology, are or our in at a differentiation no there's make around terms start in of in going the silicon customer it's disruption module an to our element and
you that, enables from the including of improving around still I decoupled So great Crystalline it's opportunities. Chinese different and is supply Solar a First opportunity marketplace. CuRe further our that long-term relative deliver playing its is the technology it customers have into Again, competitive though, some the chain, agent particular, in rate, position the silicon to is with evolution of in right? and degradation think, and enhancing
will our India also a for U.S. is ASPs. driver to India the largely with largely it's also optimized kind our about fleet, Perrysburg to the with create X install to be CuRe. our think have of relative So with lowest optimized. a couple an will be at which in the tracker what that in X realization incremental key are which of of Series the that $X.XX I India higher we today be them and the One our what Plus of in it's the inherently comparable contracting both new bookings It product They our today. First fleet. entitlement -- will value in be efficiency we factory indications products on out come structure, The tilt alluded certainty factory, on will And it's next-gen Plus X to the the alluded where overall $X.XX will in our with firmness will momentum $X.XX tilt product, incremental fixed sit to cost Solar the think gross them the of what initial product, is of be of Series I $X.XX the current market, both basis least a fixed margin is a than a of both of X them will market. product we both to X, and optimized of -- Alex and and relative there's here
Lee Brian line Our next question Sachs. comes from from of the Goldman
fabs. cash I XXXX? get between to Can because free And you flow next here of sort about a two give had modeling flow? specific on the of cash few trajectory so balance in the be second typically seen lot have positive fixed. production that also then and Ohio I over kind of start-up rate question, know, more Is for off, We've India costs mentioned us back -- sense years, here, wondering we the comfortable OpEx the cash the that to with? you when of is? trajectory free And but informed assuming just Alex, there's I what flow is and guess, a ones. you seen years. right first the what on you're cash just net new CapEx
those respectively? about Ohio thinking in be 'XX 'XX we for costs should and India, and how So
Yes.
to number. we're That's $X.X side, $X.XX million cash $X.XX down million to year-end previously to $X.X million. So guiding now so to on the million
million million is And that that's to there associated CapEx midpoint. $XX $X.X with So the year spend. going delta the happen of this
another leaves million still couple billion so the about that of to happen going $XXX to $X in or next So years. that's
We haven't number with. that given a comfortable minimum we're
wish guided the give be going say you to we're would cash few I that the I'd factory factories factories said, a not could balance. base of cash over of be the maintaining on number. finance I comfortable wouldn't organically, of India, that a to for with the enough in we in levels the is we leverage are I and that think to construction Boise look the in the significantly terms couple drop to next generate may with business generative already That comfortable be place. we especially. reasons, can't cash going years X net But that June
I capital in do. challenging we country might There's money where less bring structure think more here optimization into out. and there's going a some it can of be to equity
the to benefit and some capital some stream the with expense there's revenue structure. think I matching of
especially beneficial I well. as come going equipment in is of think financing, there's some out get for some using of could U.S. Europe ECA we also to the intently the rates
as leave sheet So the through I'm optimization without may look will are factories working balance couple OpEx think sheet be going previous to but with, to still finance that debt ourselves significantly And balance on do cash of and could comfortable larger over the around I factories comfortable flow we well. the at organic then on side, with the we're the than years, these there be numbers, next levels factories. but be that
the $X.X region to first million in or of million location, a $XX nameplate it's You think about second $X.X came historically the in bit depending more. a million that million, factory to about depending $XX put of was the little now $X.X place up somewhere factory on down whether million, to
labor instance, For is second scale. you that double Malaysia take is or first. given be significantly could terms, going -- factory it higher indicative than little Vietnam But a costs. in it for second always U.S. to a and than cheaper internationally our It's little our the in
$XX you of could million range $XX the to million startup at per so in factory. And probably look
call it, timing, is like going The of In behind hit the going a of in factory the that, X that. U.S. a be to little significant terms XXXX. see you're quarter, to something in start-up remainder factory India XXXX, portion
mention OpEx XX% did XXXX. to we other XX% thing XX% in XX% hit about have to You like XX% the structure. other and say I'd may hit that about and is more fixed XXXX And XX% cost in the see we operating
down, that can these factory, as add and as But from. So do whole, you incremental margin the that get there a SG&A. gigawatts margin significant and will we we pretty do benefit as we of potentially keep expansion OpEx some a operating contribution slight capacity scale X.X be
Thank call. conference for again today's concludes participating. you This
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