Attached files
| file | filename |
|---|---|
| 8-K - SUNEDISON, INC. | v209727_8-k.htm |
| EX-99.2 - SUNEDISON, INC. | v209727_ex99-2.htm |
|
MEMC
Electronic Materials, Inc.
501
Pearl Drive (City of O’Fallon)
Post
Office Box 8
St.
Peters, Missouri 63376 USA
Phone:
636-474-5000
Fax:
636-474-5158
www.memc.com
|
|
 For Immediate
Release
MEMC
REPORTS FOURTH QUARTER
AND
FULL YEAR 2010 RESULTS
Highlights:
|
|
|
·
|
Fourth
quarter GAAP net sales of $850.1 million, an increase of 69% from the
prior quarter and 138% versus last year; non-GAAP net sales of $949.5
million
|
||
|
·
|
Fourth
quarter GAAP EPS of $0.05 and non-GAAP EPS of $0.25; full year GAAP EPS of
$0.15 and non-GAAP EPS of $0.39
|
||
|
·
|
Semiconductor
Materials increased market share in an environment of rising
prices
|
||
|
·
|
Solar
Materials increased fourth quarter net sales by 27% sequentially, and
expanded operating margin by 563 basis points sequentially to
13.6%
|
||
|
·
|
SunEdison
more than doubled project pipeline in 2010 to 1.4 gigawatts; in the fourth
quarter, SunEdison completed the Rovigo project and received the final
payment for total project sale proceeds of $366 million
|
||
|
St. Peters, MO, February 1,
2011 – MEMC Electronic Materials, Inc. (NYSE: WFR) today announced
financial results for the fourth quarter and full year 2010.
GAAP
net sales for the quarter were $850.1 million, an increase of 69% from
$503.1 million in the third quarter of 2010 and an increase of 138% from
$356.7 million in the fourth quarter of 2009. Fourth quarter
GAAP net sales include $307.6 million in 2010 and $3.8 million in 2009
from the SunEdison business that was acquired in November
2009. Non-GAAP net sales for the quarter were $949.5 million
and include $99.4 million of adjustments for revenue or profit deferrals
required under GAAP real estate and lease accounting. See the
financial statement tables at the end of this press release for
reconciliation between GAAP and non-GAAP financial
measures. All adjustments relate to the SunEdison
segment.
For
the full year, GAAP net sales were $2,239.2 million, an increase of 92%
from $1,163.6 million in 2009. GAAP net sales include $420.5
million in 2010 and $3.8 million in 2009 from the SunEdison business.
Non-GAAP net sales for full year 2010 were $2,416.0 million and include
$176.8 million of adjustments for deferrals required under GAAP real
estate and lease accounting.
The
company reported GAAP operating income of $20.9 million for the quarter,
compared to operating income of $9.9 million in the third quarter and an
operating loss of $11.0 million in the fourth quarter of 2009. Non-GAAP
operating income for the fourth quarter was $88.4
million.
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-more-
|
MEMC’s
GAAP net income for the fourth quarter was $11.4 million, or $0.05 per
share, compared to a net income of $17.6 million, or $0.08 per share, in
the third quarter and a net loss of $7.1 million, or $0.03 per share, in
the prior year quarter. Non-GAAP net income for the quarter was
$58.2 million, or $0.25 per share.
GAAP
net income for the full year was $33.2 million, or $0.15 per share,
compared to a net loss of $68.3 million, or $0.31 per share, in
2009. Non-GAAP net income for the full year was $88.7 million,
or $0.39 per share.
During
the fourth quarter, the company generated operating cash flow of $286.6
million, compared to operating cash flow of $52.3 million in the third
quarter of 2010 and $19.4 million in the fourth quarter of
2009. Higher sequential operating cash flow was driven by
improvements in net working capital. For the full year, the
company generated operating cash flow of $347.6 million, compared to $33.0
million in 2009. The increase for the year was driven by net
income growth, deferred revenue for solar energy systems, and net working
capital.
Capital
expenditures were $115.1 million in the quarter, driven by investments in
300mm wafer production, solar wafering manufacturing, and projects for
productivity improvement.
Construction
of solar energy systems for SunEdison projects of $101.5 million for the
fourth quarter includes the construction of solar projects currently
classified as owned projects and carried as fixed assets. Cash flow for
projects expected to result in direct sales is reflected in working
capital.
Free
cash flow was $188.4 million during the quarter and $7.0 million for the
full year.
MEMC
ended the fourth quarter with cash and cash equivalents of $707.3 million
excluding $62.5 million of restricted cash.
Non-recourse
project debt and capital leases were $618.4 million at year end and there
was no short-term borrowing under the company’s corporate revolving credit
facility as of December 31, 2010.
“Our
fourth quarter results extended MEMC’s recent trend of steady improvement,
with SunEdison delivering its strongest quarter to date,” said Chief
Executive Officer Ahmad Chatila. “While semiconductor and solar end
markets are dynamic, we are improving our execution while continuing
strategic initiatives that will catalyze our growth in 2011 and
beyond.”
For
the full year of 2011, MEMC expects non-GAAP sales in the range of $3.4 –
3.7 billion and earnings per share of $1.00 to $1.30. MEMC
expects GAAP sales in the range of $2.8 - $3.1 billion and earnings per
share of $0.25 to $0.55.
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-more-
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Following
is additional detail on fourth quarter 2010 results by
segment.
Semiconductor
Materials
Semiconductor
Materials net sales for the fourth quarter were $262.6 million, an
increase of 1% from the third quarter of 2010 and 26% from the fourth
quarter of 2009. The sequential increase was primarily driven
by additional market share and higher pricing, partially offset by lower
seasonal volumes. The year-over-year increase in sales was the result of
significantly higher volume and higher wafer pricing.
Segment
operating profit was $25.6 million, compared to $26.2 million in the third
quarter, and a loss of $9.6 million in the prior year
quarter. The small sequential decline in operating profit in
the fourth quarter was primarily a result of foreign currency effects and
lower volume, partially offset by higher pricing. The
year-over-year increase was driven by higher pricing, volume, and
productivity improvements.
Solar
Materials
Solar
Materials net sales for the fourth quarter were $279.9 million, an
increase of 27% from the third quarter of 2010 and an increase of 93% from
the fourth quarter of 2009. Both the sequential and the
year-over-year increases were the result of significantly higher wafer
volumes and a modest increase in pricing.
Segment
operating profit was $38.1 million in the fourth quarter, compared to
$17.6 million in the third quarter, and $32.4 million in the prior year
quarter. Fourth quarter segment operating profit includes costs associated
with the integration of and volume increases at Solaicx. Higher
wafer volumes drove both the sequential and year-over-year increases in
operating profit.
Solar
Energy (SunEdison)
SunEdison
GAAP net sales for the fourth quarter were $307.6 million, compared to net
sales of $21.5 million in the third quarter of 2010, and $3.8 million in
the prior year quarter. SunEdison non-GAAP net sales for the
2010 fourth quarter were $407.0 million. As previously announced,
SunEdison completed the sale of the 70 megawatt (MW) Rovigo project to
First Reserve. Consistent with our treatment of similarly
structured projects, $58.0 million in revenue for Rovigo deferred in
SunEdison’s GAAP results was recognized as revenue in the non-GAAP results
and $19.7 million in revenue was not recognized in GAAP or non-GAAP
results as a result of minority ownership interest in the First Reserve
joint venture.
SunEdison’s
fourth quarter GAAP operating loss was $8.2 million, compared to an
operating loss of $7.2 million in the third quarter of 2010. GAAP
operating loss in the fourth quarter was driven by the timing difference
between recognition of cost and revenue under GAAP real estate
accounting. SunEdison’s non-GAAP operating income for the
fourth quarter was $59.3
million.
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-more-
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SunEdison
ended the year with a pipeline of 1,416MW, of which 87MW was under
construction at year end. SunEdison uses the term “pipeline” to
identify solar energy systems for which SunEd has a signed PPA (Power
Purchase Agreement) contract or a secured grid connection site and
completed permitting, or document of customer intent/LOI (Letter of
Intent) identifying the terms and conditions to develop the proposed
transaction. “Under
construction” refers to projects within pipeline, in various stages of
completion, which are not yet operational.
Corporate/Other
Corporate/other
cost was $34.6 million in the fourth quarter, compared to $26.7 million in
the third quarter of 2010 and $27.6 million in the prior year
quarter. The sequential and year-over-year increases were
driven primarily by the timing of non-cash stock vesting, as well as
additional headcount in support of growth.
The
company will provide additional information on 2010 fourth quarter and
full year results, and 2011 guidance on the conference call today,
February 1, at 5:30 p.m. ET.
Contacts:
Media:
Bill
Michalek
Director,
Corporate Communications
(636)
474-5443
Investors/Analysts:
Mark
Murphy
Chief
Financial Officer
(636)
474-5338
Steve
O’Rourke
Chief
Strategy Officer
(636)
474-5243
Helen
Li
Manager,
Investor Relations
(636)
474-5753
xli@memc.com
Use
of Non-GAAP Measures
Management
has determined that certain non-GAAP metrics for the SunEdison segment
presented herein are the key metrics that will help investors understand
the ultimate income and near-term cash flows generated by our SunEdison
business. These non-GAAP measures and metrics include deferrals
required under GAAP real estate and lease accounting for some of
SunEdison’s direct sales and or its sale-leaseback transactions. For
a complete description of our non-GAAP measures, see the non-GAAP
reconciliation table below and Form 8-K filed
today.
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-more-
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Conference
Call
MEMC
will host a conference call today, February 1 at 5:30 p.m. ET to discuss
the company’s fourth quarter and full year results and related business
matters. A live webcast will be available on the company’s web site at
www.memc.com.
A
replay of the conference call will be available from 7:30 p.m. ET on
February 1 until 11:59 p.m. ET on February 8. To access the
replay, please dial (320) 365-3844 at
any time during that period, using passcode 189603. A replay will also be
available until 11:59 p.m. ET on February 8 on the company’s web site at
www.memc.com.
About
MEMC
MEMC
is a world leader in semiconductor and solar technology. MEMC
has been a pioneer in the design and development of silicon wafer
technologies for 50 years. With R&D and manufacturing
facilities in the U.S., Europe, and Asia, MEMC enables the next generation
of high performance semiconductor devices and solar
cells. Through its SunEdison subsidiary, MEMC is also a
developer of solar power projects and a worldwide leader in solar energy
services. MEMC’s common stock is listed on the New York Stock
Exchange under the symbol “WFR” and is included in the S&P 500
Index. For more information about MEMC, please visit www.memc.com.
Forward-Looking
Statements
Certain
matters discussed in this press release and on the conference call are
forward-looking statements, including that for the full year of 2011, MEMC
expects non-GAAP sales in the range of $3.4 – 3.7 billion and non-GAAP
earnings per share of $1.00 to $1.30, and GAAP sales in the range of $2.8
- $3.1 billion and GAAP earnings per share of $0.25 to
$0.55. Such statements involve certain risks and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements. Potential risks and uncertainties include
concentrated project development risks related to large scale solar
projects; changes to accounting interpretations or accounting rules;
market demand for our products and services; changes in the pricing
environment for silicon wafers and polysilicon, as well as solar power
systems; the availability and size of government and economic incentives
to adopt solar power, including tax policy and credits and renewable
portfolio standards; the availability of attractive project finance and
other capital for SunEdison projects; existing or new regulations and
policies governing the electric utility industry; historical conversion
rates for SunEdison of pipeline into completed projects will not be
achieved; dependence on single and limited source suppliers; utilization
of our manufacturing volume and capacity; the terms of any potential
future amendments to our long-term agreements with our solar wafer
customers; general economic conditions, including the ability of our
customers to pay their debts as they become due; our ability to realize
the benefits of any announced or future facility closings and/or
restructurings; our ability to maintain future growth; failure of
third-party subcontractors to construct and install our solar energy
systems; customer acceptance of our new products; the impact of
competitive products and technologies; inventory levels of our customers;
supply chain difficulties or problems; interruption of production; outcome
of pending and future litigation matters; good working order of our
manufacturing facilities; our ability to reduce manufacturing and
operating costs; assumptions underlying management's financial estimates;
delays in capacity expansion and the restructuring of our manufacturing
operations across different plants; actions by competitors, customers and
suppliers; changes in the retail industry; changes in federal or state
laws governing utilities; damage to our brand; the integration of the
SunEdison acquisition, the Solaicx acquisition or any future acquisitions;
changes in product specifications and manufacturing processes; changes in
financial market conditions; changes in foreign economic and political
conditions; changes in the composition of worldwide taxable income and
applicable tax laws and regulations; changes in technology; the impact of
competitive products and technologies; changes in interest and currency
exchange rates and other risks described in the company’s filings with the
Securities and Exchange Commission. These forward-looking statements
represent the company’s judgment as of the date of this press release. The
company disclaims, however, any intent or obligation to update these
forward-looking statements.
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-tables
to follow-
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MEMC
ELECTRONIC MATERIALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Unaudited;
In millions, except per share
data)
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||||
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||
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2010
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||||
|
Net
sales
|
$ | 850.1 | $ | 503.1 | $ | 356.7 | $ | 2,239.2 | $ | 1,163.6 | ||||||||||
|
Cost
of goods sold
|
726.1 | 418.2 | 303.7 | 1,894.1 | 1,035.5 | |||||||||||||||
|
Gross
profit
|
124.0 | 84.9 | 53.0 | 345.1 | 128.1 | |||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||||
|
Marketing
and administration
|
83.1 | 59.4 | 52.4 | 277.3 | 161.9 | |||||||||||||||
|
Research
and development
|
19.0 | 14.0 | 10.6 | 55.6 | 40.4 | |||||||||||||||
|
Restructuring
and impairment charges
|
1.0 | 1.6 | 1.0 | 5.3 | 53.0 | |||||||||||||||
|
Insurance
recovery
|
- | - | - | (11.9 | ) | - | ||||||||||||||
|
Operating
profit (loss)
|
20.9 | 9.9 | (11.0 | ) | 18.8 | (127.2 | ) | |||||||||||||
|
Non-operating
expense (income):
|
||||||||||||||||||||
|
Interest
expense
|
5.5 | 5.1 | 3.1 | 28.7 | 4.0 | |||||||||||||||
|
Interest
income
|
(0.7 | ) | (0.7 | ) | (4.1 | ) | (5.5 | ) | (26.5 | ) | ||||||||||
|
Decline
(increase) in fair value of warrant
|
2.1 | (0.2 | ) | (1.7 | ) | 14.0 | (5.4 | ) | ||||||||||||
|
Other,
net
|
1.7 | 0.8 | (1.3 | ) | (3.9 | ) | 0.9 | |||||||||||||
|
Total
non-operating expense (income)
|
8.6 | 5.0 | (4.0 | ) | 33.3 | (27.0 | ) | |||||||||||||
|
Income
(loss) before income tax benefit and equity in earnings of joint
venture
|
12.3 | 4.9 | (7.0 | ) | (14.5 | ) | (100.2 | ) | ||||||||||||
|
Income
tax benefit
|
(9.8 | ) | (13.6 | ) | (7.3 | ) | (54.1 | ) | (42.2 | ) | ||||||||||
|
Income
(loss) before equity in earnings of joint venture
|
22.1 | 18.5 | 0.3 | 39.6 | (58.0 | ) | ||||||||||||||
|
Equity
in earnings of joint venture, net of tax
|
- | (0.1 | ) | (6.0 | ) | 7.2 | (11.8 | ) | ||||||||||||
|
Net
income (loss)
|
22.1 | 18.4 | (5.7 | ) | 46.8 | (69.8 | ) | |||||||||||||
|
Net
(income) loss attributable to noncontrolling interests
|
(10.7 | ) | (0.8 | ) | (1.4 | ) | (13.6 | ) | 1.5 | |||||||||||
|
Net
income (loss) attributable to MEMC stockholders
|
$ | 11.4 | $ | 17.6 | $ | (7.1 | ) | $ | 33.2 | $ | (68.3 | ) | ||||||||
|
Basic
income (loss) per share
|
$ | 0.05 | $ | 0.08 | $ | (0.03 | ) | $ | 0.15 | $ | (0.31 | ) | ||||||||
|
Diluted
income (loss) per share
|
$ | 0.05 | $ | 0.08 | $ | (0.03 | ) | $ | 0.15 | $ | (0.31 | ) | ||||||||
|
Weighted-average
shares used in computing basic income (loss) per share
|
227.0 | 226.8 | 225.0 | 226.9 | 223.9 | |||||||||||||||
|
Weighted-average
shares used in computing diluted income (loss) per share
|
228.7 | 227.6 | 225.0 | 228.1 | 223.9 | |||||||||||||||
|
RESULTS
BY REPORTABLE SEGMENT
|
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|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||||
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
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|
2010
|
2010
|
2009
|
2010
|
2009
|
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|
Net
sales:
|
||||||||||||||||||||
|
Semiconductor
Materials
|
$ | 262.6 | $ | 261.1 | $ | 207.7 | $ | 992.6 | $ | 586.3 | ||||||||||
|
Solar
Materials
|
279.9 | 220.5 | 145.2 | 826.1 | 573.5 | |||||||||||||||
|
Solar
Energy
|
307.6 | 21.5 | 3.8 | 420.5 | 3.8 | |||||||||||||||
|
Consolidated
net sales
|
$ | 850.1 | $ | 503.1 | $ | 356.7 | $ | 2,239.2 | $ | 1,163.6 | ||||||||||
|
Operating
income (loss):
|
||||||||||||||||||||
|
Semiconductor
Materials
|
$ | 25.6 | $ | 26.2 | $ | (9.6 | ) | $ | 68.2 | $ | (205.6 | ) | ||||||||
|
Solar
Materials
|
38.1 | 17.6 | 32.4 | 86.9 | 184.4 | |||||||||||||||
|
Solar
Energy
|
(8.2 | ) | (7.2 | ) | (6.2 | ) | (13.0 | ) | (6.2 | ) | ||||||||||
|
Corporate
and other
|
(34.6 | ) | (26.7 | ) | (27.6 | ) | (123.3 | ) | (99.8 | ) | ||||||||||
|
Consolidated
operating income (loss)
|
$ | 20.9 | $ | 9.9 | $ | (11.0 | ) | $ | 18.8 | $ | (127.2 | ) | ||||||||
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MEMC
ELECTRONIC MATERIALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(Unaudited;
In millions)
|
|
December
31,
|
December
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 707.3 | $ | 632.7 | ||||
|
Restricted
cash
|
43.8 | 37.4 | ||||||
|
Short-term
investments
|
0.1 | 85.9 | ||||||
|
Accounts
receivable, net
|
296.0 | 173.3 | ||||||
|
Inventories
|
214.6 | 140.5 | ||||||
|
Solar
energy systems held for sale, including consolidated variable interest
entities of $151.8 in 2010
|
237.5 | 20.3 | ||||||
|
Income
taxes receivable
|
35.6 | 72.5 | ||||||
|
Prepaid
and other current assets
|
210.8 | 87.0 | ||||||
|
Total
current assets
|
1,745.7 | 1,249.6 | ||||||
|
Investments
|
110.3 | 297.6 | ||||||
|
Property,
plant and equipment, net:
|
||||||||
|
Semiconductor
and Solar Materials
|
1,461.8 | 1,115.9 | ||||||
|
Solar
energy systems, including consolidated variable interest entities of $56.2
and $45.8 in 2010 and 2009, respectively
|
566.1 | 344.8 | ||||||
|
Deferred
tax assets, net
|
139.3 | 95.3 | ||||||
|
Customer
warrant
|
5.2 | 19.2 | ||||||
|
Restricted
cash
|
18.7 | 21.0 | ||||||
|
Other
assets
|
172.3 | 91.1 | ||||||
|
Goodwill
|
342.7 | 285.3 | ||||||
|
Intangible
assets, net
|
56.6 | 46.7 | ||||||
|
Total
assets
|
$ | 4,618.7 | $ | 3,566.5 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Current
portion of long-term debt and capital lease obligations
|
$ | 6.4 | $ | 5.4 | ||||
|
Current
portion of solar energy system financing and capital lease obligations,
including
|
||||||||
|
consolidated
variable interest entities of $28.8 and $2.2 in 2010 and 2009,
respectively
|
65.7 | 26.8 | ||||||
|
Accounts
payable
|
745.5 | 219.3 | ||||||
|
Accrued
liabilities
|
165.4 | 106.8 | ||||||
|
Contingent
consideration related to acquisition of SunEdison and
Solaicx
|
115.2 | - | ||||||
|
Accrued
wages and salaries
|
50.4 | 39.2 | ||||||
|
Deferred
revenue for solar energy systems
|
8.8 | - | ||||||
|
Customer
deposits
|
92.9 | 83.6 | ||||||
|
Income
taxes payable
|
41.8 | 28.0 | ||||||
|
Total
current liabilities
|
1,292.1 | 509.1 | ||||||
|
Long-term
debt and capital lease obligations, less current portion
|
20.5 | 25.2 | ||||||
|
Long-term
solar energy system financing and capital lease obligations, less current
portion, including
|
||||||||
|
consolidated
variable interest entities of $107.2 and $56.7 in 2010 and 2009,
respectively
|
590.1 | 359.2 | ||||||
|
Pension
and post-employment liabilities
|
54.1 | 46.6 | ||||||
|
Deferred
revenue for solar energy systems
|
75.0 | 3.3 | ||||||
|
Semiconductor
and Solar Materials deferred revenue
|
115.2 | 106.3 | ||||||
|
Other
liabilities
|
177.3 | 310.0 | ||||||
|
Total
liabilities
|
2,324.3 | 1,359.7 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholders'
equity:
|
||||||||
|
Preferred
stock
|
- | - | ||||||
|
Common
stock
|
2.4 | 2.4 | ||||||
|
Additional
paid-in capital
|
557.9 | 507.4 | ||||||
|
Retained
earnings
|
2,112.3 | 2,079.1 | ||||||
|
Accumulated
other comprehensive income
|
34.1 | 33.0 | ||||||
|
Treasury
stock
|
(456.2 | ) | (453.3 | ) | ||||
|
Total
MEMC stockholders' equity
|
2,250.5 | 2,168.6 | ||||||
|
Noncontrolling
interests
|
43.9 | 38.2 | ||||||
|
Total
stockholders' equity
|
2,294.4 | 2,206.8 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 4,618.7 | $ | 3,566.5 | ||||
|
MEMC
ELECTRONIC MATERIALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited;
In millions)
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||||
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||
|
2010
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||||
|
Cash
flows from operating activities:
|
||||||||||||||||||||
|
Net
income (loss)
|
$ | 22.1 | $ | 18.4 | $ | (5.7 | ) | $ | 46.8 | $ | (69.8 | ) | ||||||||
|
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
|
|||||||||||||||||||
|
Depreciation
and amortization
|
45.1 | 43.5 | 34.4 | 164.7 | 124.0 | |||||||||||||||
|
Stock-based
compensation
|
12.5 | 10.1 | 9.9 | 51.6 | 36.5 | |||||||||||||||
|
Impairment
charges
|
- | - | - | - | 24.6 | |||||||||||||||
|
Decline
(increase) in fair value of warrant
|
2.1 | (0.2 | ) | (1.7 | ) | 14.0 | (5.4 | ) | ||||||||||||
|
Change
in accounts receivable
|
(40.8 | ) | 32.0 | 19.8 | (117.2 | ) | 26.0 | |||||||||||||
|
Change
in solar energy systems held for sale
|
91.7 | (177.7 | ) | 14.1 | (158.5 | ) | 14.1 | |||||||||||||
|
Change
in accounts payable
|
162.2 | 145.7 | (8.3 | ) | 370.7 | 1.6 | ||||||||||||||
|
Changes
in income taxes receivable and payable
|
29.7 | (27.7 | ) | 20.8 | 43.6 | 9.1 | ||||||||||||||
|
Deferred
revenue for solar energy systems
|
4.3 | 68.4 | - | 78.8 | - | |||||||||||||||
|
Working
capital and other
|
(42.3 | ) | (60.2 | ) | (63.9 | ) | (146.9 | ) | (127.7 | ) | ||||||||||
|
Net
cash provided by operating activities
|
286.6 | 52.3 | 19.4 | 347.6 | 33.0 | |||||||||||||||
|
Cash
flows from investing activities:
|
||||||||||||||||||||
|
Cash
paid for acquisition, net of cash acquired
|
- | (73.5 | ) | (188.5 | ) | (73.5 | ) | (188.5 | ) | |||||||||||
|
Proceeds
from sale and maturities of investments
|
- | 38.2 | 140.7 | 185.0 | 272.5 | |||||||||||||||
|
Proceeds
from return of equity method investment
|
7.7 | - | - | 85.3 | - | |||||||||||||||
|
Purchases
of available for sale investments
|
- | - | - | - | (10.9 | ) | ||||||||||||||
|
Purchases
of cost and equity method investments
|
(2.0 | ) | (6.8 | ) | (18.8 | ) | ||||||||||||||
|
Capital
expenditures
|
(115.1 | ) | (95.8 | ) | (73.6 | ) | (352.0 | ) | (225.4 | ) | ||||||||||
|
Construction
of solar energy systems
|
(101.5 | ) | (66.9 | ) | (28.0 | ) | (280.1 | ) | (28.0 | ) | ||||||||||
|
Restricted
cash
|
6.9 | (14.7 | ) | 2.1 | (1.8 | ) | 2.2 | |||||||||||||
|
Payments
to vendors for deposits and loans
|
(17.0 | ) | (39.9 | ) | - | (85.0 | ) | - | ||||||||||||
|
Cash
received from net investment hedge
|
- | (0.8 | ) | - | 17.6 | - | ||||||||||||||
|
Investment
in joint venture
|
- | - | (50.7 | ) | - | (121.7 | ) | |||||||||||||
|
Other
|
(1.4 | ) | - | 1.5 | ||||||||||||||||
|
Net
cash used in investing activities
|
(222.4 | ) | (260.2 | ) | (198.0 | ) | (521.8 | ) | (299.8 | ) | ||||||||||
|
Cash
flows from financing activities:
|
||||||||||||||||||||
|
Net
repayments of customer deposits
|
||||||||||||||||||||
|
related
to long-term supply agreements
|
(2.5 | ) | (1.1 | ) | (0.2 | ) | (31.3 | ) | (90.4 | ) | ||||||||||
|
Principal
payments on long-term debt
|
(1.8 | ) | - | (42.8 | ) | (4.8 | ) | (46.0 | ) | |||||||||||
|
Net
(repayments) proceeds from Corporate revolver obligations
|
(50.0 | ) | 50.0 | - | - | - | ||||||||||||||
|
Proceeds
from solar energy system financing and capital lease
obligations
|
172.6 | 85.2 | 78.1 | 364.4 | 78.1 | |||||||||||||||
|
Repayments
of solar energy system financing and capital lease
obligations
|
(42.4 | ) | (2.9 | ) | (15.6 | ) | (61.1 | ) | (15.6 | ) | ||||||||||
|
Common
stock repurchased
|
(2.5 | ) | - | - | (2.8 | ) | (15.8 | ) | ||||||||||||
|
Proceeds
from issuance of common stock
|
- | - | 0.1 | - | 0.7 | |||||||||||||||
|
Proceeds
from non-controlling interests
|
0.1 | 0.3 | - | 10.1 | - | |||||||||||||||
|
Return
of investment and dividends to noncontrolling interest
|
(18.4 | ) | - | - | (18.4 | ) | - | |||||||||||||
|
Excess
tax benefits from stock-based compensation arrangements
|
- | - | - | - | 0.3 | |||||||||||||||
|
Debt
financing fees
|
(3.8 | ) | (0.1 | ) | (3.0 | ) | (12.9 | ) | (3.0 | ) | ||||||||||
|
Net
cash provided by (used in) financing activities
|
51.3 | 131.4 | 16.6 | 243.2 | (91.7 | ) | ||||||||||||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
3.7 | 11.6 | 2.5 | 5.6 | 2.9 | |||||||||||||||
|
Net
increase (decrease) in cash and cash equivalents
|
119.2 | (64.9 | ) | (159.5 | ) | 74.6 | (355.6 | ) | ||||||||||||
|
Cash
and cash equivalents at beginning of period
|
588.1 | 653.0 | 792.2 | 632.7 | 988.3 | |||||||||||||||
|
Cash
and cash equivalents at end of period
|
$ | 707.3 | $ | 588.1 | $ | 632.7 | $ | 707.3 | $ | 632.7 | ||||||||||
|
MEMC
ELECTRONIC MATERIALS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL
INFORMATION
|
|
(Unaudited;
In millions)
|
|
SUMMARY OF GAAP DEBT
OUTSTANDING
|
December
30,
|
|||
|
2010
|
||||
|
Consolidated
|
||||
|
Materials
Business - Bank debt and capital lease obligations
|
$ | 26.9 | ||
|
SunEdison
- Debt
|
37.4 | |||
|
SunEdison
- Current portion of non-recourse system financing debt and capital lease
obligations
|
65.7 | |||
|
SunEdison
- Non-recourse system financing debt and capital lease obligations, less
current portion
|
552.7 | |||
|
Total
|
$ | 682.7 | ||
|
NON-GAAP RECONCILIATION OF FREE CASH
FLOW
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||
|
December
31,
|
December
31,
|
December
31,
|
December
31,
|
|||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
cash provided by operating activities
|
$ | 286.6 | $ | 19.4 | $ | 347.6 | $ | 33.0 | ||||||||
|
Capital
expenditures
|
(115.1 | ) | (73.6 | ) | (352.0 | ) | (225.4 | ) | ||||||||
|
Construction
of solar energy systems
|
(101.5 | ) | (28.0 | ) | (280.1 | ) | (28.0 | ) | ||||||||
|
Proceeds
from solar energy system financing and capital lease
obligations
|
172.6 | 78.1 | 364.4 | 78.1 | ||||||||||||
|
Repayments
of solar energy system financing and capital lease
obligations
|
(42.4 | ) | (15.6 | ) | (61.1 | ) | (15.6 | ) | ||||||||
|
Dividends
to noncontrolling interest
|
(11.8 | ) | - | (11.8 | ) | - | ||||||||||
|
Free
cash flow
|
$ | 188.4 | $ | (19.7 | ) | $ | 7.0 | $ | (157.9 | ) | ||||||
|
Generally
Accepted Accounting Principles (GAAP) is the term used to refer to the
standard framework of guidelines for financial accounting and reporting.
In addition to reporting financial results in accordance with GAAP, we
have provided a non-GAAP financial measure for free cash flows which we
believe is useful to help investors better understand the capital
intensity of our business, including our project financing operations. In
addition to other key performance indicators, we evaluate the performance
of the solar project business on the cash generation abilities of the
projects, which are typically financed at the inception of the leases,
resulting in a gain on sale that is deferred and not immediately included
in net income. Any non-GAAP measure should be considered in context with
the GAAP financial presentation and should not be considered in isolation
or as a substitute for GAAP net
earnings.
|
|
MEMC
ELECTRONIC MATERIALS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL
INFORMATION
|
|
NON-GAAP
FINANCIAL MEASURES
(Unaudited) [A]
|
|
Three
months ended
|
Twelve-months
ended
|
|||||||
|
(In
millions except per share data)
|
December
31, 2010
|
December
31, 2010
|
||||||
|
Non-GAAP
Financial Measures
|
||||||||
|
Non-GAAP
net sales
|
$ | 949.5 | $ | 2,416.0 | ||||
|
Non-GAAP
operating income
|
88.4 | 99.7 | ||||||
|
Non-GAAP
net income
|
58.2 | 88.7 | ||||||
|
Non-GAAP
fully diluted income per share
|
0.25 | 0.39 | ||||||
|
Reconciliations of GAAP to Non-GAAP
Measures
|
||||||||
|
GAAP
net sales
|
$ | 850.1 | $ | 2,239.2 | ||||
|
Direct
sales [B]
|
58.1 | 75.7 | ||||||
|
Financing
sale-leasebacks [C]
|
41.3 | 101.1 | ||||||
|
Non-GAAP
net sales
|
$ | 949.5 | $ | 2,416.0 | ||||
|
GAAP
operating income
|
$ | 20.9 | $ | 18.8 | ||||
|
Direct
sales [B]
|
58.4 | 61.4 | ||||||
|
Cash
gain received on financing sale-leasebacks [C]
|
9.1 | 19.5 | ||||||
|
Non-GAAP
operating income
|
$ | 88.4 | $ | 99.7 | ||||
|
GAAP
net income
|
$ | 11.4 | $ | 33.2 | ||||
|
Total
SunEdison non-GAAP adjustments, net of tax [D]
|
46.8 | 55.5 | ||||||
|
Non-GAAP
net income
|
$ | 58.2 | $ | 88.7 | ||||
|
GAAP
fully diluted income per share
|
$ | 0.05 | $ | 0.15 | ||||
|
Non-GAAP
adjustments
|
0.20 | 0.24 | ||||||
|
Non-GAAP
fully diluted income per share
|
$ | 0.25 | $ | 0.39 | ||||
|
2011
Guidance
|
||||||||
|
Twelve-months
ended December 31, 2011
|
||||||||
|
(In
billions except per share data)
|
Low
Estimate
|
High
Estimate
|
||||||
|
Non-GAAP
Financial Measures
|
||||||||
|
Non-GAAP
net sales
|
$ | 3.4 | $ | 3.7 | ||||
|
Non-GAAP
fully diluted income per share
|
1.00 | 1.30 | ||||||
|
Reconciliations of GAAP to Non-GAAP
Measures
|
||||||||
|
GAAP
net sales
|
$ | 2.8 | $ | 3.1 | ||||
|
Direct
sales [B]
|
0.2 | 0.2 | ||||||
|
Financing
sale-leasebacks [C]
|
0.4 | 0.4 | ||||||
|
Non-GAAP
net sales
|
$ | 3.4 | $ | 3.7 | ||||
|
|
||||||||
|
GAAP
fully diluted income per share
|
$ | 0.25 | $ | 0.55 | ||||
|
Non-GAAP
adjustments
|
0.75 | 0.75 | ||||||
|
Non-GAAP
fully diluted income per share
|
$ | 1.00 | $ | 1.30 | ||||
|
[A]
|
The
Company believes that these non-GAAP measures represent important internal
measures of performance for the SunEdison business, and better reflect
SunEdison’s income and near term cash flows. Accordingly, where
these measures are provided, it is done so that investors have the same
financial data that management uses to evaluate the operational and
financial performance of the SunEdison business unit. MEMC management uses
these measures to manage the SunEdison business because it believes these
measures are more representative of the operational health and performance
of that business. These non-GAAP measures should not be
considered as a substitute for, and should only be read in conjunction
with, measures of financial performance prepared in accordance with GAAP
and the reconciliation of each non-GAAP measure to the directly comparable
GAAP measure set forth in the press release.
|
|||||||||
|
[B]
|
These
non-GAAP measures include adjustments to revenue in the Company’s Solar
Energy (SunEdison) segment from direct sales of solar energy systems where
we have received upfront partial payments and, absent real estate
accounting requirements, we would have recognized revenues under the
percentage of completion accounting method. The non-GAAP
measures also include adjustments to non-GAAP revenue and/or profit
deferred related to SunEdison’s maximum exposure for power warranties,
system uptime guarantees and breach of contract provisions offered to the
direct sale customers for these systems that are considered continuing
involvement by SunEdison in the sold solar energy systems. This
revenue is not recognized as of the reporting date under GAAP real estate
accounting rules because the solar energy systems are considered integral
to the real estate on which they were built. Absent real estate
accounting requirements, deferred revenues related to continuing
involvement would be recognized under GAAP during the reporting period
because SunEdison has historically experienced minimal losses related to
these guarantees. For these direct sales, the sales contracts
have been executed and SunEdison has either received payment in full or
maintains a valid and legal note receivable for the full sales price that
SunEdison expects to collect within a short period after completion of the
project.
|
|||||||||
|
[C]
|
Adjustment
relates to revenue from SunEdison sale/leaseback transactions. This
includes cash received for the legal sale of the solar energy system to
the purchaser that will not be recognized as revenue under
GAAP. Non-GAAP operating income includes the upfront cash
margin in an amount equal to the difference between (a) the cash received
as of the reporting date from SunEdison’s financing partners in
sale-leaseback transactions considered financings and (b) SunEdison’s
total costs to construct the solar energy systems sold under the
sale-leaseback transactions. These sale-leaseback transactions
are classified as financing transactions under GAAP because the system is
considered integral to the land or building on which it resides and
because SunEdison has continuing involvement with the system through a
purchase option. This system development margin will be
recognized under GAAP upon termination of the related lease because the
present value of the lease payments are less than the amount recorded as
debt.
|
|||||||||
|
[D]
|
Income
tax has been calculated using the estimated incremental tax rate for MEMC
in the jurisdictions giving rise to the operating income
adjustment.
|
|||||||||