LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012
XINYU CITY, China and SUNNYVALE, Calif., Dec. 3, 2012
XINYU CITY, China and SUNNYVALE, Calif., Dec. 3, 2012 /PRNewswire/ -- LDK
Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated
manufacturer of photovoltaic products, today reported its unaudited financial
results for the third quarter ended September 30, 2012.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Third Quarter Highlights:
oNet sales of $291.5 million; and
oShipped 230.2 megawatts (MW) of wafers and 161.9 MW of cells and modules
in the third quarter.
Net sales for the third quarter of fiscal 2012 were $291.5 million, compared
to $235.4 million for the second quarter of fiscal 2012, and $471.9 million
for the third quarter of fiscal 2011.
Gross loss for the third quarter of fiscal 2012 was $32.5 million, compared to
gross loss of $92.0 million in the second quarter of fiscal 2012, and gross
loss of $17.0 million for the third quarter of fiscal 2011.
Gross margin for the third quarter of fiscal 2012 was negative 11.2%, compared
to negative 39.1% in the second quarter of fiscal 2012, and negative 3.6% in
the third quarter of fiscal 2011.
During the preparation of its third quarter 2012 financial results, LDK
Solar's management determined that an inventory write-down of $37.8 million
was required as a result of a continuous drop in the market price for
polysilicon, wafers, cells and modules. As a result, gross margin and results
from operations were negatively impacted in the third quarter of fiscal 2012.
Loss from operations for the third quarter of fiscal 2012 was $75.7 million,
compared to loss from operations of $172.7 million for the second quarter of
fiscal 2012, and loss from operations of $77.1 million for the third quarter
of fiscal 2011.
Operating margin for the third quarter of fiscal 2012 was negative 26.0%
compared to negative 73.4% in the second quarter of fiscal 2012, and negative
16.3% in the third quarter of fiscal 2011.
Income tax benefit for the third quarter of fiscal 2012 was $25.4 million,
compared to income tax benefit of $23.7 million in the second quarter of
fiscal 2012 and income tax benefit of $1.7 million in the third quarter of
Net loss available to LDK Solar's shareholders for the third quarter of fiscal
2012 was $136.9 million, or a loss of $1.08 per diluted ADS, compared to net
loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second
quarter of fiscal 2012 and net loss of $114.5 million, or a loss of $0.87 per
diluted ADS for the third quarter of fiscal 2011. The number of shares for
calculating diluted ADS was approximately 127.2 million for the third quarter
of fiscal 2012.
LDK Solar ended the third quarter of fiscal 2012 with $111.9 million in cash
and cash equivalents and $340.7 million in short-term pledged bank deposits.
"We were pleased to deliver third quarter results that were in line with
expectations," stated Xingxue Tong, President and CEO of LDK Solar. "While we
saw improvement to our top and bottom line in the third quarter, our results
continue to reflect the industry-wide pricing pressure and demand weakness
that is negatively impacting the entire solar supply chain."
"Over the past several weeks, we have taken a number of steps to increase
operating efficiencies and improve our liquidity, including realigning the
management team and the share purchase agreement with Heng Rui Xin Energy. We
are making progress on our strategy to streamline operations, prudently manage
expenses and diversify our business. We plan to continue to actively manage
our business to adapt to market developments and position the company for
future growth," concluded Mr. Tong.
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
For the fourth quarter of fiscal 2012, LDK Solar estimates its revenue to be
in the range of $230 million to $290 million, wafer shipments between 200 MW
and 250 MW, cells and module shipments between 50 MW and 80 MW.
For fiscal 2012, LDK Solar estimates its revenue to be in the range of $950
million to $1 billion, wafer shipments between 910 MW and 960 MW, cell and
module shipments between 500 MW and 530 MW and inverter shipments between 150
MW to 200 MW. LDK Solar expects PV system project construction to be in the
range of 200 MW to 300 MW and to recognize between 50 MW and 100 MW through
project sales and EPC services for third party customers.
Conference Call Details
The LDK Solar Third Quarter 2012 teleconference and webcast is scheduled to
begin at 8:00 a.m. Eastern Time (ET), on December 3, 2012. To listen to the
live conference call, please dial 877-941-1427 (within U.S.) or 480-629-9664
(outside U.S.) at 8:00 a.m. ET on December 3, 2012. An audio replay of the
call will be available through December 13, 2012, by dialing 800-406-7325
(within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code
A live webcast of the call will be available on the company's investor
relations website at http://investor.ldksolar.com.
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
Cash and cash equivalents 111,859 296,193
Pledged bank deposits 340,651 523,383
Trade accounts and bills receivable, net 290,211 342,174
Inventories 324,512 467,148
Prepayments to suppliers, net 27,085 37,035
Other current assets 346,972 350,320
Total current assets 1,441,290 2,016,253
Property, plant and equipment, net 3,658,189 3,728,797
Deposits for purchases of property, plant and equipment 159,898 169,442
and land use rights
Land use rights 282,978 285,214
Prepayments to suppliers expected to be utilized beyond 8,701 9,519
one year, net
Pledged bank deposits – non-current 30,820 30,713
Investments in associates 11,035 11,893
Other non-current assets 170,438 149,407
Total 5,763,349 6,401,238
Liabilities and equity
Short-term borrowings and current installments of 2,206,374 2,430,973
long-termborrowingsandshort-term PRC notes
Trade accounts and bills payable 1,043,623 1,032,861
Advance payments from customers, current
Accrued expenses and other payables 782,124 783,859
Convertible senior notes, less debt discount - current 23,766 23,755
Other financial liabilities 64,220 65,221
Total current liabilities 4,249,945 4,518,492
Long-term borrowings, excluding current installments 645,367 854,172
and long-term PRC notes
RMB-denominated US$-settled senior notes, less debt
discount and Convertible senior notes – non-current
Advance payments from customers – non-current 50,219 101,033
Other liabilities 215,655 223,055
Total liabilities 5,418,414 5,954,622
Redeemable non-controlling interests 299,025 254,444
Total LDK Solar Co., Ltd. shareholders' equity 29,697 171,917
Non-controlling interests 16,213 20,255
Total equity 45,910 192,172
Total liabilities and equity 5,763,349 6,401,238
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
(In US$'000, except per ADS data)
For the 3 Months Ended
Net sales 291,520 235,361
Cost of goods sold (324,048) (327,356)
Gross loss (32,528) (91,995)
Selling expenses (10,373) (11,043)
General and administrative expenses (29,518) (34,410)
Research and development expenses (3,300) (4,707)
Impairment loss for property, plant and - (30,504)
Total operating expenses (43,191) (80,664)
Loss from operations (75,719) (172,659)
Other income (expenses):
Interest income 4,477 3,414
Interest expense and amortization of debt (61,045) (75,547)
issuance costs and debt discount
Foreign currency exchange gain (loss), net 1,339 (6,913)
Others, net 9,619 (435)
Loss before income tax (121,329) (252,140)
Income tax benefit 25,396 23,707
Net loss (95,933) (228,433)
Loss attributable to non-controlling 3,925 1,037
Loss attributable to redeemable non- 6,222 6,082
Net loss attributable to LDK Solar Co., Ltd.
Accretion to redemption value of (51,157) (33,027)
redeemable non-controlling interests
Net loss available to LDK Solar Co., Ltd. (136,943) (254,341)
Net loss per ADS, Diluted $ (1.08) $ (2.00)
Unaudited Condensed Consolidated Statement
of Comprehensive Income Information
Other comprehensive loss
Foreign currency exchange translation (7,033) (6,486)
adjustment, net of nil tax
Fair value changes in available-for-sale equity (930) (2,693)
security, net of tax effect
Comprehensive loss (103,896) (237,612)
Less: comprehensive loss attributable to (3,663) (1,368)
Less: comprehensive loss attributable to (6,576) (6,801)
redeemable noncontrolling interests
Comprehensive loss attributable to LDK (93,657) (229,443)
Solar Co., Ltd. shareholders
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated
manufacturer of photovoltaic (PV) products. LDK Solar manufactures
polysilicon, mono and multicrystalline ingots, wafers, cells, modules,
systems, power projects and solutions. LDK Solar's headquarters and principal
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
LDK Solar and its 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 projects, 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 PV 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
SOURCE LDK Solar Co., Ltd.
Contact: Lisa Laukkanen, The Blueshirt Group for LDK Solar, +1-415-217-4967,
firstname.lastname@example.org; Jack Lai, Executive VP and CFO, LDK Solar Co., Ltd.,
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