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|LDK Solar Reports Financial Results for First Quarter of Fiscal 2010|
XINYU CITY, China and SUNNYVALE, Calif., May 10, 2010 /PRNewswire via COMTEX/ --LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, today reported its unaudited financial results for the first quarter ended March 31, 2010.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Net sales for the first quarter of fiscal 2010 were $347.6 million, compared to $304.6 million for the fourth quarter of fiscal 2009, and $283.3 million for the first quarter of fiscal 2009.
For the first quarter of fiscal 2010, gross profit was $54.5 million, compared to $30.2 million in the fourth quarter of fiscal 2009, and a gross profit of $4.9 million for the first quarter of fiscal 2009.
Gross margin for the first quarter of fiscal 2010 was 15.7%, compared to 9.9% in the fourth quarter of fiscal 2009 and 1.7% in the first quarter of fiscal 2009.
Income from operations for the first quarter of fiscal 2010 was $33.0 million, compared to loss from operations of $3.5 million for the fourth quarter of fiscal 2009, and compared to loss from operations of $16.1 million for the first quarter of fiscal 2009. Loss from operations for the fourth quarter of fiscal 2009 included a non-recurring charge of $10.0 million for the settlement of a class action lawsuit.
Operating margin for the first quarter of fiscal 2010 was 9.5% compared to negative 1.1% in the fourth quarter of fiscal 2009 and negative 5.7% in the first quarter of fiscal 2009.
Income tax expense for the first quarter of fiscal 2010 was $3.2 million, compared to income tax expense of $5.3 million in the fourth quarter of fiscal 2009 and an income tax benefit of $1.6 million in the first quarter of fiscal 2009.
Net income for the first quarter of fiscal 2010 was $7.2 million, or $0.06 per diluted ADS, compared to a net loss of $13.2 million, or $0.12 per diluted ADS for the fourth quarter of fiscal 2009. The number of shares for calculating diluted ADS was approximately 125.8 million and 109.6 million for the first quarter of fiscal 2010 and the fourth quarter of fiscal 2009, respectively.
LDK Solar ended the first quarter of fiscal 2010 with $347.4 million in cash and cash equivalents and $96.3 million in short-term pledged bank deposits.
"Continued momentum in the solar industry drove results for the first quarter," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our efforts to diversify our business within the module market tracked well in the quarter. We brought crystalline module manufacturing in house and signed several module supply contracts during the first quarter. In our wafer business, we continue to closely monitor demand levels to meet our customers' needs. In April we achieved annualized wafer capacity of 2.0 GW, maintaining our industry leadership as we continue to represent a significant share of global wafer capacity.
"We were particularly pleased with our progress in improving our operating efficiencies during the first quarter. Profitability improved sequentially, in part due to our ongoing efforts to manage capital expenditures and closely control expenses. We look forward to the increased benefit associated with the ramping up of our polysilicon production. We produced nearly 700 MT polysilicon in total between our 1,000 MT plant and the first 5,000 MT train of our 15,000 MT plant during the quarter and continue to ramp our output monthly. We remain encouraged by the improving industry dynamics," concluded Mr. Peng.
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the second quarter of fiscal 2010, LDK Solar estimates its revenue to be in the range of $460 million and $490 million with wafer shipments between 460 MW and 480 MW, and module shipments between 60 MW and 70 MW. For fiscal 2010, we expect our revenue to be in the range of $1.6 to $1.7 billion with wafer shipments between 1.7 GW and 1.8 GW and module shipment between 200 MW and 300 MW.
Conference Call Details
The LDK Solar First Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on May 10, 2010. To listen to the live conference call, please dial 877-941-8602 (within U.S.) or 480-629-9811 (outside U.S.) at 4:50 p.m. ET on May 10, 2010. An audio replay of the call will be available through May 12, 2010, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4294955#.
LDK Solar Co., Ltd. Unaudited Condensed Consolidated Balance Information (In US$'000, except share and per share data) 3/31/2010 12/31/2009 --------- ---------- Assets Current assets Cash and cash equivalents 347,355 384,761 Pledged bank deposits 96,272 68,913 Trade accounts receivable 206,563 214,157 Bills receivable 2,492 8,270 Inventories 493,068 432,193 Insurance recoveries receivable - 6,000 Prepayments to suppliers, net 43,087 48,874 Due from related parties 64,870 37,615 Other current assets 152,484 150,697 Deferred income tax assets, net 44,023 46,012 ------ ------ Total current assets 1,450,214 1,397,492 Property, plant and equipment, net 2,677,888 2,608,725 Deposits for purchases of property, plant and equipment 35,913 32,529 Intangible asset, net 998 1,018 Land use rights 174,691 175,533 Inventories to be processed beyond one year 5,595 10,947 Prepayments to suppliers expected to be utilized beyond one year, net 15,660 26,482 Pledged bank deposits - non-current 50,577 50,797 Debt issuance costs, net 3,999 4,909 Investment in an associate and a joint venture 48,991 51,884 Deposits relating to sales and leaseback transactions 13,917 13,921 Deferred income tax assets 18,433 16,913 Other non-current assets 1,528 4,106 ----- ----- Total assets 4,498,404 4,395,256 ========= ========= Liabilities and equity Current liabilities Short-term bank borrowings and current installments of long-term bank borrowings 1,059,047 980,359 Bills payable 136,581 97,872 Trade accounts payable 202,802 191,240 Advance payments from customers, current 183,087 199,075 portion Accrued expenses and other payables 531,559 656,697 Due to related parties 115,184 38,782 Income tax payable 11,383 14,741 Obligations under capital leases - current portion 33,844 33,380 Other financial liabilities 8,788 7,880 ----- ----- Total current liabilities 2,282,275 2,220,026 Convertible senior notes 400,000 400,000 Debt discount (6,808) (8,358) Long-term bank borrowings, excluding current installments 460,020 408,062 Obligations under capital leases, excluding current installments 42,045 50,664 Advance payments from customers - non- current 166,168 177,773 Other liabilities 239,298 250,561 Deferred income tax liability 9,028 8,545 ----- ----- Total liabilities 3,592,026 3,507,273 Equity LDK Solar Co., Ltd. shareholders' equity Ordinary shares: US$0.10 par value; 499,580,000 shares authorized; 130,021,049 and 131,666,949 shares issued as of December 31, 2009 and March 31, 2010, respectively; and 129,771,643 and 131,421,700 shares outstanding as of December 31, 2009 and March 31, 2010 respectively 13,142 12,977 Additional paid-in capital 757,782 744,988 Statutory reserve 29,676 29,676 Accumulated other comprehensive income 83,499 84,544 Accumulated deficit (14,529) (21,713) ------- ------- Total LDK Solar Co., Ltd. shareholders' equity 869,570 850,472 Non-controlling interests 36,808 37,511 ------ ------ Total equity 906,378 887,983 Total liabilities and shareholders' equity 4,498,404 4,395,256 ========= ========= LDK Solar Co., Ltd. Unaudited Condensed Consolidated Statements of Operations Information (In US$'000, except per ADS data) For the 3 Months Ended 3/31/2010 12/31/2009 Net sales 347,550 304,590 Cost of goods sold (293,021) (274,345) -------- -------- Gross profit 54,529 30,245 Selling expenses (3,090) (1,533) General and administrative expenses (17,513) (21,021) Research and development expenses (967) (1,168) Legal settlements, net of insurance recoveries - (10,000) --- ------- Total operating expenses (21,570) (33,722) ------- ------- Profit (Loss) from operations 32,959 (3,477) Other income (expenses): Interest income 926 625 Interest expense and amortization of convertible senior notes issuance costs and debt discount (23,495) (14,434) Foreign currency exchange loss, net (2,937) (1,782) Government subsidies 2,462 9,501 Others (225) 1,907 ---- ----- Profit (Loss) before income tax 9,690 (7,660) Income tax expense (3,186) (5,286) ------ ------ Net income (loss) after taxes before non-controlling interest 6,504 (12,946) Loss (Profit) attributable to non- controlling interest 680 (289) --- ---- Net income (loss) attributable to holders of ordinary shares 7,184 (13,235) ----- ------- Net income (loss) per ADS, Diluted $0.06 $(0.12) ----- ------
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and the world's largest producer of multicrystalline wafers. LDK Solar manufactures polysilicon, mono and multi crystalline ingots, wafers, modules, and engages in project development activities in selected segments of the PV market. Through its broad product offering of mono and multi crystalline solar wafers and modules, LDK Solar provides its customers with a full spectrum of solutions. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. LDK Solar's office in the United States is located in Sunnyvale, California. For more information about our company and products, please visit www.ldksolar.com
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing construction projects, including its polysilicon plants, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the solar industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.
SOURCE LDK Solar Co., Ltd.