SPWR - Earnings call transcript Q3 2019

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Operator

Good afternoon. Welcome to the SunPower Corporation's Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]

to call like to now would turn over the Mr. I Relations Vice Corporation. President Okunski, at of Bob Investor SunPower Thank you, sir.

You may begin.

Robert Okunski

conference Thank welcome you, earnings everyone to call. to our Kevin. third quarter I'd like XXXX

back from start call the an strategic turning CEO; CFO, Sial, today, before by will who our call Tom On XXXX off will financial our Werner, results to review we operational guidance. with and Manu Tom our for followed review third the quarter

be available replay Relations a of will the website. this reminder, today a Investor later call page As on our of

reports are may we to are those see During make affect Harbor today's and that today's call, additional on will for the documents quarterly our in risks forward-looking slide regarding our that Form statements uncertainties XX-Q. release, those that today's statements. factors presentation, XX-K press subject Please and of forward-looking information Safe various XXXX described our

posted we a on other of & the call, sheet enhance metrics. set our website. posted we PowerPoint have same call of some detailing the data a historical during In location, which also have slides the page reference of also To we supplemental Presentations this our Events will

like Tom? Tom over the turn CEO of Werner, SunPower. I'd call that, With to to

Thomas Werner

that Thanks, driving we quarter overview initiatives On of on improved thank XXXX update value. for our profitability shareholder performance this Bob. are And will joining strategic us. our third you and call, provide an and an

plan, EBITDA in Volume, driven on three. across well the our SunPower QX, slide all including targets to business. global executed margin DG demand strong came revenue quarter, forecast. or turn adjusted our meeting for Please by financial and our in exceeding

new in residential well with fourth positioned quarter record the and booking both levels In businesses. SPES, we are our homes for

markets also business Australia Europe, Korea, DG Southeast including particular Our in in quarterly Asia. with delivered and shipments strength QX, SPT record

expansion all including Volume by JV. enabled our growth fabs, P-Series across was initiatives capacity

agreement and cash harbor closed Finally, the level unit generated business financing our with we strengthened Hannon our safe at balance Armstrong. sheet,

me let performance segment detail. cover greater in our Now,

commercial solution. businesses with in four. First turn Storage slide Please growth revenue SPES. our sequential to residential interest showed our and recently Equinox launched and residential megawatt Overall, both significant

demand need. is and production strong A-Series this to ramping for residential, meet In we our panels are

build position XX,XXX continue with and where shipments record our now We the industry-leading new is in under backlog homes homes, during to quarter. over bookings

saw To residential cash, feeling with forecast, go demand of for particularly give with current you in a our home the solar of XX balanced, across lease communities we business, business scale strong with and line this SunPower new The for loan our QX. products. in remains live mix loan

we digital, ease app dealers, nationwide In launched design. this design speed software our of the our see design and of use and system by studio to continue significant given

the of rollout product our is Finally, on Equinox plan. storage

scale test We end at QX. at start completing of now beta shipping will are and deal the

our we share C&I, with one approximately maintained In volume position increasing number XX% sequentially.

team during as well executing new we XX were Our awarded of origination the is quarter. MW projects

our deployment been However, execution disappointing. project has

quarter. direct believe are we that stronger financial fourth starting in will number undertaking initiatives performance, drive result, business commercial a our in As we the of a

average solution well, of pipeline over the XX storage and selling is last rates XXX Helix MW Our the with months. XX% attach exceeding approximately

date. approximately to in We projects MW been XX have storage awarded

Oregon facility, Finally, in are demand P-Series seeing Walmart. for and manufactured our both solid we product recent for our Chevron with deployments

decision in strategic residential starting channels just small commercial combining business initiatives the I and to mentioned, have by to SPES realign addition our our we In made the QX. dealer

to five. Please turn slide

a model drive in are an indirect channel profile. our SPES to costs and direct order our commercial scale, We margin in channel into reorganizing lower business improve business

X.X an more GW, base network customers than dealer platform dealer of the This installed with in of partners. creates XXX in the largest residential XXX,XXX and over commercial industry, a

where business also exceed XX%. group our new homes This includes share our to continues

margins improve to us leverage enable will services. structure potential and OpEx opportunities through efficiency, increased storage and with chain supply this cross-sell expect We

our We making business with the target EBITDA approximately XX% QX channels significant coming in achieving greater X%. than progress towards are in at

For despite uneven year. believe this business for our continue the C&I, this performance potential to we in

number repeat customer strong market one lead track services storage to share, to in C&I are innovative $X billion well-positioned record we our the Given market. continue pipeline, and and offerings,

We business are operating confident the execution project steps to number taking to of sustainable return our these a to profitability. reduce will commercial and that We're deployment adjustments improve expenses.

Equinox our to a Finally, I'm is on happy capitalize quarter we residential opportunity launch announce market. last significant the for see to what residential in solution the of storage growth

energy next is major to the Equinox Equinox homeowners peak onerous turn electric slide rates. more utility outages our evolution giving and of Please platform, six. storage from freedom

rapidly backup With single company which for growing we home during electricity and full by is Most blackouts the energy fully-integrated Equinox, designed, warranted store residential importantly, peak daily homeowners engineered in as system a advantage this Equinox partial reduce distinct only space. storage and competitive or a consumption. can see

Equinox footprint of platform, offers industry-leading superior warranty. Built our solution storage compared a significant cycle battery and storage an smaller success the performance, customers Helix modular on including with our to advantages residential competition,

We are taking and beta are testing orders. currently field units initial in the

We in QX rollout next of starting national year. a expect

Now, let's seven. business. Please review to our turn Technologies SunPower slide

shipments targets. plan, and Our cost that team executed again yield QX, manufacturing while well exceeded in record delivering meeting

ramp is we by achieve the pair full line technology Maxeon-X of are of first generation quarter. performance hitting and Maxeon-X its on goals track our end to next Our this

P-Series to X.X joint combined venture Production GW we expect of manufacturing this going facility. ship Oregon our from year in And total technology our well. of also a P-Series of is

our quarter, overall volume DG Our SPT the will channel. led posted sales group our international performance shipments another European strong by into best ever record for

toward in market more than this SPT segment, of drive shipments our continue to We higher with XX% the QX. the margin mix to in DG

footprint plant for XXXX. SPT also in expand with continues its to solid a backlog segment power the

fourth agreement we making potential scale capacity announce progress the quarter. be accelerate Finally, to finalizing a of in good to Maxeon-X and to are position up the investment towards expect in this

SPT's to eight. at a Please take closer strong of let's turn market Now, the slide details growth. look international

roughly SPT year, outside volume with has DG the past doubled primary sales a on US, focus of the markets. Over

growth In APAC, strong as and Australia the in region. markets XXX% demand market XXXX EMEA, network, supply XX%. Korea, Southeast is annual core projects DG by dealer in of exceeded shipment strong shipment mature to fueled is and as well growth the several in traction Asian power where In SPT deepest in most selected plant

sell to in market a sales Latin and exposed does Shipments from the China demand SPT therefore increasing not we're into currently America that to growth, albeit base, our showed highest China small not resources is fluctuations. and territory.

provide Please nine. turn growth on color I little JV. to venture. P-Series One our in is of would the that the slide enabled joint XXXX rapid like factors to now a

a of XXXX the Cogenra in long-term JVs agreements China, technology, shingling joint parts development our Following we the and and number partner of in whom acquisition of value the with we with various had structured chain. DZS, engaged

Yixing, up brought connections agreements located funding supply P-Series scale expertise also a and significant the low-cost in JV, regional DZS. Early in DZS signed within XXXX, technology managed not with only deep manufacturing our we JV China, by to chain. to the but

almost more of the The XXX GW, first sold at JV P-Series just JV expect And to that sales a will volume models fourfold XXXX, panels were our of XXXX. than we produced by under increase. in In X.X panels produced XXXX, grow JV. from of the MW the we end

strong by reliability better driven as such see superior higher and product all efficiency, energy attributes for We demand segments, yield. this enhanced across customer technology

patents and unique technology P-Series adds pleased and growing we our appropriately of P-Series in P-Series a portfolio issued is global steps taken IP QX which patents strong receive Our have in markets. protection. to in ensure proprietary to to We're first China, key

customer strong discussions the ramp and for we with Given product, currently of further X successful P-Series the are GW about capacity demand expansion. JV this DZS our in

pleased slide to our company's or in we key exceeded all turn metrics. summary, with performance as met we QX Please XX. financial the In are of

business on Our SPES and commercial commercial and execution. we're our focused highly performing is channel well improving residential direct organization

fueled SPT our drive expansion of sales and with DG continues towards strong to markets. growth, P-Series capacity global a and bias Maxeon-X by

Finally, the strong cash for and quarter. performance balance sheet generation delivered improve we continue to our

to financials. With the over like that, Manu would turn I to the Manu? to review call

Manavendra Sial

Thanks, Tom.

slide turn the Please review financials. Now, let to me XX.

with above and a result pleased DG continued commitment execution results commitments our our adjusted financial Overall, EBITDA as forecast. exceeded we or our including our of strong demand. our as was revenue were We met key non-GAAP

revenue with including particular channel, sequentially, bookings. residential in XX% approximately record SPES, our strength grew In

primarily For SPT, we the shipped international above driven business. and by DG XXX outlook, MW, our another record

Our gross with in margin line XX%, consolidated non-GAAP was our outlook.

driven commercial In residential an SPES, up improved was by performance gross margin our sequentially, channels. both in and

business expectations. backlog direct However, as execution was the and our grow, project below continues in origination remains commercial engine while strong Tom deployment our mentioned, to

commercial business. the in of number a improve part execution implementing overall We're initiatives direct fourth the quarter the of the SPES to in

given beyond, the synergies team the combining backlog, our and businesses in the structure overall expect commercial in to We cost improve enhanced our residential commercial business, fourth with business. achieved and strength SPES of focus direct residential improving and including quarter our by channel on margin strong

gross forecast benefit models. SPT, Both facility. their higher demand are margin transaction progress as volumes, our In strong on getting was the DG Oregon from manufacturing increased well to on to related segments as our than leaseback making target

$XX million OpEx $XX from million in Non-GAAP second quarter. the was the for quarter, up

million less last comparable a confident in that We we than that was basis. OpEx million. will quarter, QX slightly $X $XXX mentioned OpEx benefit be on Excluding below XXXX a QX one-time remain OpEx

our second X, NGT line in quarter the Fab consistent for CapEx now our million, with production. was $XX ramp with at

up approximately and million $XX EBITDA $XX sequentially. Adjusted million was

expect backlog, see an volumes improvement attributable the certain from to fourth and increased margin million projects. We plant power of strong benefit significant in quarter benefit as $XX legacy EBITDA NGT a we approximate to

quarter. financial XX. I'd highlights few for now Please to slide the like a turn discuss to

with margin primarily As our or DG growth previously the and our up exceeded for volumes. in financial further quarter, to mentioned, related sequentially, we commitments key met revenue

program. this maximize quarter harbor we Also, with a successfully with a XXX on and generating while closed to highly Hannon MW quarter, safe arrangement unit believe the us efficient the key the we capital harbor Armstrong our financing manage of material. of arrangement to For in business provides related cash level. We economics to up the structure to working safe continue flexible that a capital,

expansion ourselves in XXXX. positioned also We for margin

cost expansion direct improvement higher and further cost segments, combining this and synergies execution on NGT revenue our come cost of drive and by our reductions our team system channels; enhanced technology residential in and roadmaps commercial commercial expect storage business. focus including business and our We to in to from volumes;

On less we corporate continue the be reduce to than OpEx expect it sales. and X% cost of side, to

forecast guidance, would the like turning provide update for call back the Tom to Before cash I Please XX. an on to turn our our of slide for balance the to year.

more with chart, year that see in side whole. We a those $XXX confident the goal our our major items as than XXXX will as remain the detail moves where the of the as On of well achieve ending cash quarter year we for left-hand third million we cash. flow for we

For the of at the cash we as we level generated $XX our third approximately met the million flow business quarter. positive in quarter, cash for goal being unit

and level further resources our quarter. fund initiatives. business committed while in liabilities, this We allocating legacy paying accomplished We expanding fourth our generating down to growth cash the at capacity remain the further unit

will I to the Tom? our turn back that, With call for Tom guidance.

Thomas Werner

Manu. to the guidance would Please our year fiscal discuss slide Thanks, XXXX. now quarter for I turn like to fourth and XX.

follows. and revenue guidance $XXX XX% a a The as $X million XX% of net of to million. to to $XXX of company's loss gross is quarter $XX million, million basis, fourth margin GAAP On

and of $XXX million, of megawatts margin to range expects XX%, non-GAAP of company in gross EBITDA MW of $XXX the basis, $XX MW. the to adjusted revenue million, a deployed million to million to XX% $XX XXX XXX On

non-GAAP slide GAAP non-GAAP $X.X basis $X.X and GAAP $X.X the Revenue to guidance billion billion year billion is as of fiscal and basis. On to follows. a a on company's XXXX on XX, $X

be the X.X deployed Gigawatts harbor to range MW company's for to approximately excluding in program. X.X expected GW the is GW XXX safe of

expenses than Non-GAAP approximately and less of million million. capital $XX operational expenditures of $XXX

includes fourth in reminder, guidance attributable $XX power million a current As quarter. gross margin legacy XXXX to approximately quarter in certain the plant projects and

$XXX the fiscal of company's XXXX and million. EBITDA adjusted million $XXX in be to to Finally, range the expected year is unchanged

and initiatives In executed a as the strong end we for solid quarter for on into was of the going our the and company summary, profitable performance positioned strategic QX year. company

I that, With turn like over the questions. for would to call

Operator

[Operator Instructions].

first from question Our Brian with comes Lee Goldman Sachs.

Brian Lee

and high-end what's out gets in ranges megawatts on here, i.e. what of the low the at Maybe metrics. all high-end, first some you on the questions. you SPT. what of Thanks end? that's takes guidance, looks guys. to embedded the puts the It range through to like to pretty taking for and wide range low Manu fall the a would just Can walk for the is you here, put widest deployed off, us Hey,

So, you some could parts of walk here. maybe if the just moving us through

Manavendra Sial

Right. Thanks, Brian.

guidance, versus project guidance with think international our our increased time. megawatt megawatt if there's remains And BG, business, a business. slightly commercial about strong. So, deployment specifically then, last very little SPT timing of you overall we bit the our

think shipments that as JV bookends scale two of the power you little project of go associated the utility range, there's bit businesses So, big out with lumpiness too. plant, in of the about a our SPT into

in wide SPT. that So, the range explains

Thomas Werner

this be is expect we confirmed otherwise of Where that of I last guidance. to you magic bit did Basically, lead Brian, moved chair. guidance. we what from playing up, middle would a is There is Tom. the the no previous megawatts in We guidance quarter is confirmation but little for year. it's just median, we to

Brian Lee

pass I'll Okay, it two And then, me on. and just fair enough. maybe from

mid-teens the year most of SPT been highest surprised. the across have us gross be business would told guys units, of would you that If us margins I beginning the think and at had

can you kind quarter SPT of sense give sustainable so and that been some the target into this of in is able get us has XXXX. range So, why already here at You're how of XXXX? third quickly level to

were then, what's year to get and believe resi to conversely, the here the And XX% respectively, which and next trajectory guess, into on mid-teens before? targets commercial, heading I I

Thomas Werner

Jeff then, run maybe Thanks. off the and to it to folks And units. Norm Brian. then I'm and Okay, Nam, business hand going the who then

Jeff is, towards at XXXX. talk a having about the a couple SPT think QX, that. And analyst on next into that to day. We or is half of you going points year, factors it at on being I reliable year. at gave good back lead that guidance one would think or plus a minus our going model driving that can the the forward. of are of better basis that in is we very What the actually,

some be will where but we there be quarters not quite, might So, level. that close, to

I'll color what to And get right. let Jeff most are model have some the give you would you're to So, drivers earlier than as projected. to

about reseller are business the very half three and new value-added trending think in start excellent. And Demand All And and can you that which residential thinking commercial more. residential as to is are though, I of next reseller and into channel similarly like our and position of extremely to channels think and channel there, reliably I'd SPES about homes. business, is a Norm – value-added getting talk towards favorably. model back year XXXX. good

working. Our progress. work commercial is lots We're more of a getting in awards. The origination engine is of

we entered execution Our as uneven new states. is

bit So, that's probably relate would to. you get to XXXX a to model, probably I little what longer is

you then briefly if Nam. and say words and Jeff, few So, maybe a Norm just

Jeff Waters

it story again, underlying The also market. DG and good margin the goes and on the global to performance, the Yeah. gross the technology products

that As it has improvement the Latin P-Series it customer series technology, growth technology the on great growth Tom to like drive because we've Maxeon the had we've EMEA, great IBCs highlighted, we've leads or of markets the seen even seen differentiation Asia-Pac America. good base, allows in whether us margins. it which price be to and And the in or

expect, head that would we'll be in as XXXX, roughly we that We area. into

the around I we I put model little between Markets roughly Day. the that but XX% we'll think then, Capital in and That further is be now out, area. is would target say, a

Norman Taffe

Brian. Norm, is This

the quite on grow channels go business, margins As margins in far QX. well as did we

our gross that, close can our current tell model. will In that plan. fairly XQ, X% in almost So, already I we getting effect, of continue. we're That's added QX, margin. growth in you And to

that's ramping that large. Now, and is very QX the

model to next of think, I year Tom second hit likely. the consistently towards is half said, overall as

gross continue been healthier we're the things. our driven is really bigger margins higher one, one margins a as business. of improvement getting we ship, backlog of More A-Series that our margin a And more healthier. couple by piece homes grows, mix. our bigger get be is the other A-series and Now, our go. to and And new

Nam Nguyen

here. is said, Nam Tom With origination what to looking great. is direct, follow This commercial

seeing a to we the side. margin storage would We're Helix execution getting focus improvement. year-over-year, are lot of Our is going gross I say, adoption. on

In the terms execution. timeline the focus us. our of XXXX next Tom getting over the as on is mentioned, for it's And again, targets, to right quarter,

Brian Lee

the a Manu, margin the one Maybe I legacy one, Appreciate projects expected could it in $XX Great. color. just for elaborate on quarter, originally item? guidance squeeze if in. housekeeping to million and the XXXX XQ? recurring fourth gross that's on part you in it of this or And can related guys. if is any was EBITDA what there's contribution Thanks, beyond new for

Manavendra Sial

our Mexico, project it margin primarily tail small. The questions. original to of grows to And remaining little next legacy our the is first of in bit a two but guidance. development gross So, part related related project year, with quarter then,

Brian Lee

Okay. Thank you, guys.

Thomas Werner

Brian. Thanks,

Operator

Suisse. question with Credit comes Weinstein next from Our Michael

Michael Weinstein

Hi, going X% guys. the commercial about come you timing at period? for that up the in targets? to expecting point be talk it is Can of bit a XXXX you to or that little EBITDA for actually ramp the EBITDA at that? through it in direct. Are period What's

Thomas Werner

So, I'll that, Michael. take

actual the the analyst to exit rate. at next we X% that we that can was target we to da XX%. year So, think gave And close

to each be or that on each targets goal above meaning at those quarter Our sustainably rate. is rates, that at these of is

year in the sustainably specific is our the X% result answer in it's that cost to adjustments structure projects XX% making rate improvements. deploy we for the So, at XXXX. C&I exit way and next to we're And will

Michael Weinstein

in much on backlog, of XXXX? And that California home how in is the XX,XXX

Thomas Werner

I'll go ahead and let that. Norm take

Norman Taffe

Michael. Hi, Yeah.

new XX% it's California. strong in is Over super position by our XXX% almost as homes far backlog, of driven As that California. the

Michael Weinstein

last One it. Got question.

quarter should QX year, we type expect more next harbor safe the the for that first a item. on like Just or plan in

Thomas Werner

question then sufficiently. if answer the me back I didn't and jump I'll let answer in So,

Manu this harbor as inventory with XXXX. by to bit would our for We be will inventory of good similar financed the safe mentioned, throughout maybe XXXX in Hannon QX. expect still in at That We'll putting quarter, a have for adding little be an Armstrong. end program, agreement that We XXXX. been

Michael Weinstein

Thank great. you. right, All

Thomas Werner

Alrighty.

Operator

from question next with comes Our Oppenheimer. Colin Rusch

Colin Rusch

give guys. us you for capacity Can that energy so some Thanks the and growth much, cadence storage on perspective for in capacity? the current have you

Thomas Werner

It's to then And I suppliers. a in last say for end but has we're attach residential quarter. end initial say the words take for modestly constrained rates the orders supply product this at would to you add We've beta few We'll been towards in commercial ability supply. of now, Nam the and though, the terms volume and and with able I'll in commercial. this can residential, alpha-ed QX. sense, we're their quarter. able to other give we're mostly Yeah. of for a planning for what ramp quarter then, on Norm Norm supply. of

Norman Taffe

Yeah. Hi, Colin.

to our huge going relative think we're surprisingly, than we're, seeing more storage, where half it's orders. attach just of So, going the new a of rates year, next of kind XX-plus-percent to part been obviously, revising say demand. in and probably starting to I back have upwards extraordinary our we're but be that expectations We not overall now expecting business that through we're to and take would California. brand

we start be shipments year half and so, of something that full of most to affects the March. because that second February And will until aren't going next

Nam Nguyen

going as Tom side, was we to say, award. commercial about in MW, on have already I mentioned, XX the storage

being partnerships strategic but a chain. in do of MW, the can XX we're manage another and backlog process very we And strong. think the couple have supply of the constructed. But is We managing

Colin Rusch

US what Panasonic market, business year pricing middle the then, you compelling thinking like of this context this and if capacity? business seeing far to about increasingly of out at seeing new the that are LG and just module you next that bring and And in competitors on around thoughts to book terms dynamics, of JV for could ability your put point in products in

Thomas Werner

in can. and, I'll have is want a we to that still few Jeff, add we on, Yeah. things; you lead. America see say a if What highly differentiated you

available aren't America Some you mentioned in of scale. the at products

So, highest highest our A-Series efficiency ratings. clearly and the is power

ability, be matched unchanged. incredibly quarter, as I Our selling that And next witnessed the X-Series is by well. channel is four. guess, by residential would the our this well as booking

We have planned for year. improvements own our of the

So, demand have the I'd largely year view on had next we've say for we as previously. same – remain

Jeff Waters

Yeah. This is Waters. Jeff

and introducing especially competition of, build us as that when the A-Series at where structure globally that profitably a we it compete product, speaking especially always as will cost even as it picture, of and or will. say, overseas you product I the we allow comes, Just NGT out look more would expect very similar compete at capacity, branding we're to

Colin Rusch

Great. much, guys. so Thanks

Operator

Instructions]. [Operator

with Julien Our of Bank question Dumoulin-Smith from America. next comes

Julien Dumoulin-Smith

last about comment the of Good hearing versus then Hey. year-over-year [indiscernible], we're piecing guys. will, them year-to-date that sort improvement versus you a the can rather of the of cetera? out Can a quarter? you what after et the or some terms non-GAAP Perhaps, in comment trends time. especially bit maybe A-Series, afternoon, of margin third some – EBITDA seen Thanks we've of and on little you little for you summarize the the there Helix Can rather. drivers of if bit solution, out, questions

Thomas Werner

a add then Manu that. I'll from Sure. pass take and can

of managing actually factor our to So, is some in we've form business. a less longer, what and of business, be better of job market. the modified DG technologies suitable reorienting older that the the the SKUs We profitable SPT seen for

Or year, our on quite good in that last off switch joint was SPT This DG off venture DG highlighted no year, our well. A-Series, as it's well. mentioned, to the paid you maybe paid And focus So, because, margin. lower, has has margin. we

factor another perform that's that's SPT to better. caused So,

CVAR to actually in we've some Helix storage similarly implementation A-Series. of It's that challenges been In new for better And And the us, by on business of is because strong. a Demand big offsetting virtue we business, lease, lease so channel, commercial, a that. has driver. the is quite better in we economics a then, Equinox XXXX. channels be channel in signed. that the And in our performance of had. have winner similar will then, have

in then and the sort we able harvest been investments cap products last few we've years. So, of the of and the some made solutions leakages R&D to

Julien Dumoulin-Smith

[indiscernible].

Manavendra Sial

ahead. No, no. ahead, Go go

Julien Dumoulin-Smith

just I availability? don't the sheet you just side So, a we revolver where on going think jump, comment of the if was capacities or Can with liquidity other balance you respect as equation. little you cumulative bit to stand sources mind, to about to

Thomas Werner

Yeah.

to a might take going comments he's add and I'm that Manu on few I have So, after done.

Julien Dumoulin-Smith

a XQ from in fourth to quarter SPES million plant we're working our the perspective, with both about the So, model We revolver business and lower $XX because by improvements of just a right-size also the at business generation working we in going capital they like expected a capital SPT. to in out are believe utility the need with that from revolver, cash a terms in model the revolver unit, power performance, and driven plus perspective. scale effectively fact of improvement

and the to view, from business perspective, point to we what got XQ. cash units fourth pay expect cash balance stronger further down With say generation, I'll continue I So, liabilities. a our in legacy on of balance cash quarter generate sheet a we'll I think our sheet in

Thomas Werner

Julien, have, you combination particularly cash forward, generation, goes of ownership the management, operational convert. of a on have paying of our in Enphase, previous working middle we current off and in year. And of the that the that we've convertible calls, look improvements call, in we the ways at leased, course, we Yeah. as BU as said capital next

file of look to were course, And in month we of near even a favorable, term. conditions If point maybe that few did weeks to potentially we potentially the shelf flexibility. have I that, doing raise registration all the note ago. as in like to companies, a capital markets, well capital would ago, is do a want

Julien Dumoulin-Smith

equity? And that's debt and

Thomas Werner

Can Julien. again? ask you I'm,

Julien Dumoulin-Smith

equity. Sorry. That debt would and/or include

Thomas Werner

of If evaluating. We're Yeah. both. something, consider course, we'll do to were we

Julien Dumoulin-Smith

Thank Excellent. very you, much. guys,

Thomas Werner

All Julien. right. Thanks,

question. take more we'll think I question one please. One more

Operator

David last question Our Baird. with comes Katter from

David Katter

Thank question. you taking for guys. the Hi,

on SPT any want Just Is how and progressing? are there update the partnership. there discussions touch quickly to

Thomas Werner

David. Thanks, Yeah.

[indiscernible]. think I

a return great So, to investment, we've potential which match great position a three is towards the match five, progress on investment. course, conversion quarter. investment. made We're that is to to accelerate of That announce of finalizing this in

progress. to one We We've are good down making it narrowed party.

maintain announce course, could It depending in to the that we go, near those on discussions Of very is an we possible, options. term. agreement how have

So, one things quite constructively are say. is progressing party, I would what with

David. you unless a very for you thank – follow-up, So, have much

David Katter

I'm all guys. you, set. Thank

Thomas Werner

Okay, thanks.

Thomas Werner

All right. Appreciate Appreciate the your much. time. questions very

think to have soon. some we'll I things about talk

forward our next certainly, look to you soon we at earnings again talking to call. So, and,

Operator

Ladies gentlemen, that today's concludes and presentation.

have and a disconnect wonderful day. may You

Sunpower (SPWRQ) 31 Oct 192019 Q3 Earnings call transcript