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SunEdison Reports Third Quarter 2013 Results

                 SunEdison Reports Third Quarter 2013 Results

PR Newswire

ST. PETERS, Mo., Nov. 6, 2013

ST. PETERS, Mo., Nov. 6, 2013 /PRNewswire/ --

Third Quarter 2013 Highlights:

  oGAAP revenue of $611.5 million and GAAP EPS of $(0.47)
  oNon-GAAP revenue of $672.0 million and non-GAAP EPS of $(0.00)
  oSolar Energy recognized non-GAAP revenue related to 75 MW of solar energy
    systems, interconnected 55 MW and ended the quarter with 558 MW under
    construction
  oSolar project pipeline grew to 3.1 GW and backlog grew to 1.1 GW
  oSemiconductor Materials generated positive cash flow
  oSuccessfully closed public stock offering netting proceeds of $239.6
    million
  oCash and cash equivalents of $640.3 million at quarter end

SunEdison, Inc. (NYSE: SUNE) today announced financial results for the 2013
third quarter that reflected improved execution with some continued softness
in its Semiconductor Materials segment. Solar pipeline, projects under
construction and backlog all grew sequentially, with 558 MW under construction
at quarter end. Semiconductor Materials again generated cash during the
quarter. Sequentially, the company's cash and cash equivalents increased
$202.3 million, driven primarily by cash inflows from the issuance of common
stock, solar project financing and strong working capital management, offset
by outflows from increased solar project construction.

"I am pleased with our third quarter performance, and encouraged by the
improved execution our solar and semiconductor teams have demonstrated despite
numerous challenges," commented Ahmad Chatila, Chief Executive Officer.
"Relative to last quarter, our Solar Energy segment generated improved results
and grew our solar project pipeline and backlog. I am very encouraged by the
near-term trends in our solar project business. In Semiconductor Materials, a
continued soft market remains our primary challenge, but our position remains
as strong as ever. We have achieved a more streamlined cost structure while
maintaining key customer relationships, both of which we believe will drive
value in the semiconductor business when the market turns. Our priority
remains to improve our balance sheet and generate strong returns for our
shareholders," Chatila concluded.

Key summary financial results for the 2013 third quarter are set out in the
following table. See the financial statement tables at the end of this press
release for a reconciliation of all GAAP to non-GAAP financial measures

                                                                                               US$ Millions except for EPS
                                                
Financial                                                                          
Highlights:  3Q'13               2Q'13                                                                                           Yr/Yr
                                                                                   Qtr/Qtr
                                                3Q'12
GAAP:
                                                                                   
Net Sales    $ 611.5   ^(1)(2) $ 401.3   ^(3) $ 601.6 ^(4)       $      210.2                  52%      $       9.9               or      2%
                                                                                   or
Gross Margin 9.9 %     ^(1)(2) 12.3 %    ^(3) 14.4 %  ^(4)       (240)    (450)bps
%                                                                bps
Operating
(loss)       $ (49.1)  ^(1)(2) $ (46.6)  ^(3) $ 58.9  ^(4)(5)(6)        $(2.5)                                  $(108)
Income
Net (Loss)   $ (108.0) ^(1)(2) $ (102.9) ^(3) $ 37.0  ^(4)(5)(6)        $(5.1)                                  $(145.0)
Income
EPS          $ (0.47)  ^(1)(2) $ (0.45)  ^(3) $ 0.16  ^(4)(5)(6)        $(0.02)                                 $(0.63)
Non-GAAP:
                                                                                   
Net Sales    $ 672.0   ^(2)    $ 491.6        $ 708.9 ^(4)       $      180.4                  37%      $       (36.9)            or      -5%
                                                                                   or
Gross Margin 9.5 %     ^(2)    5.9 %          16.0 %  ^(4)       360      (650) bps
%                                                                bps
Operating
(Loss)       $ (45.8)  ^(2)    $ (67.0)       $ 85.2  ^(4)(5)(6)        $21.2                                   $(131.0)
Income
Net Income   $ 4.1     ^(2)    $ (42.4)       $ 70.5  ^(4)(5)(6)        $46.5                                   $(66.4)
(Loss)
EPS          $ 0.00    ^(2)    $ (0.19)       $ 0.30  ^(4)(5)(6)        $0.19                                   $(0.30)
Cash Flow:
Capital      $ 31.6            $ 38.8         $ 24.0                    $(7.2)                                  $7.6
Expenditures
Cash Flow
from         $ (102.6)         $ (86.4)       $ 3.0                     $(16.2)                                 $(105.6)
Operations
Free Cash    $ 24.0            $ 4.4          $ 102.6                   $19.6                                   $(78.6)
Flow
Note: Table
unaudited
(1) Includes $13.8 million, or EPS of $0.04, related to previously deferred GAAP revenue.
(2) Includes $22.0 million, or EPS of $0.09, due to the termination of a supply contract with Gintech.
(3) Includes $11.7 million, or EPS of $0.03, related to previously deferred GAAP revenue.
(4) Includes $37.1 million, or EPS of $0.15, due to the termination of a supply contract with Conergy.
(5) Includes $69.2 million, or EPS of $0.30, consisting of a favorable restructuring $69.2 million adjustment relating to contract settlements
with Evonik.
(6) Includes $(14.2) million loss, or EPS of $(0.06), of asset impairment charges on solar wafering assets.

Cash Flow
Operating cash used in the 2013 third quarter was $102.6 million and was
primarily the result of changes in working capital related to project
construction, partially offset by cash generated in the Semiconductor
Materials segment. Free cash flow was $24.0 million and was largely influenced
by solar energy project financing and solar project construction activities
and capital expenditures. See the reconciliation of free cash flow in the
financial statement tables at the end of this press release.

Capital expenditures were $31.6 million and included $7.0 million related to
the previously announced acquisition of a TCS plant as part of a contract
settlement with Evonik. Similar to the 2013 second quarter, the majority of
2013 third quarter capital expenditures were incurred in the Semiconductor
Materials segment.

During the 2013 third quarter, the company raised $239.6 million, net of
expenses, in a public offering of 34.5 million common shares. The company
expects to use the proceeds for general corporate purposes, which it expects
to include funding working capital and growth initiatives.

The company ended the 2013 third quarter with cash and cash equivalents of
$640.3 million, an increase of $202.3 million from the prior quarter. Cash
increased largely due to cash inflows from the issuance of common stock, solar
project financing and strong working capital management, offset by outflows
from high solar project construction levels noted above.

Segment Results
Key segment financial results for the 2013 third quarter are set out in the
following table. See the financial statement tables at the end of this press
release for a reconciliation of all GAAP to non-GAAP financial measures.

                                                                              US$ Millions
Segment         3Q'13             2Q'13          3Q'12               Qtr/Qtr          Yr/Yr
Summary:
Net Sales:
Semiconductor   $ 230.7           $ 239.0        $ 240.3             $ (8.3)  or -3%  $ (9.6)   or -4%
Materials
Solar           $ 380.8   ^(1)(2) $ 162.3   ^(3) $ 361.3  ^(4)       $ 218.5  or 135% $ 19.5    or 5%
Energy-GAAP
Solar           $ 441.3   ^(2)    $ 252.6        $ 468.6  ^(4)       $ 188.7  or 75%  $ (27.3)  or -6%
Energy-Non-GAAP
Operating
(Loss) Income:
Semiconductor   $ (0.8)           $ 3.6          $ 8.7                 $(4.4)           $(9.5)
Materials
Solar           $ (17.3)  ^(1)(2) $ (25.2)  ^(3) $ 75.8   ^(4)(5)(6)   $7.9             $(93.1)
Energy-GAAP
Solar           $ (14.0)  ^(2)    $ (45.6)       $ 102.1  ^(4)(5)(6)   $31.6            $(116.1)
Energy-Non-GAAP
Note: Table unaudited
(1) Includes $13.8 million, or EPS of $0.04, related to previously deferred GAAP revenue.
(2) Includes $22.0 million, or EPS of $0.09, due to the termination of a supply contract with Gintech.
(3) Includes $11.7 million, or EPS of $0.03, related to previously deferred GAAP revenue.
(4) Includes $37.1 million, or EPS of $0.15, due to the termination of a supply contract with Conergy.
(5) Includes $69.2 million, or EPS of $0.30, consisting of a favorable restructuring $69.2 million
adjustment relating to contract settlements with Evonik.
(6) Includes $(14.2) million loss, or EPS of $(0.06), of asset impairment charges on solar wafering
assets.

Semiconductor Materials
Semiconductor Materials segment revenue was down year-over-year as lower
prices more than offset higher volume. Revenue was down sequentially due to
both lower volume and prices. Year over year and sequential price declines
were most prominent among large diameter wafers. Continued weakness in the
Japanese Yen remains a significant challenge in the competitive pricing
environment.

The year-over-year decline in operating income was primarily due to lower
gross profit driven by weaker pricing, offset partially by lower operating
expenses driven by improved operational efficiencies and various cost
reduction initiatives. The sequential operating profit decline was driven by
lower volume and prices.

Solar Energy: GAAP
Solar Energy segment GAAP revenue was up slightly year-over-year, driven
primarily by higher solar wafer sales, offset partially by lower solar project
and solar module sales. The sequential revenue increase was driven primarily
by higher sales of solar projects and solar materials. Third quarter 2013
revenue included $22.0 million from the termination of a supply contract with
Gintech. Third quarter and second quarter 2013 also included $13.8 million and
$11.7 million, respectively, of previously deferred revenue related to the
sale of projects in prior quarters for which the same amounts were recognized
in non-GAAP revenue in corresponding prior periods. Third quarter 2012
included revenue of $37.1 million from the termination of a supply contract
with Conergy. In the 2013 third quarter, Solar Energy recognized GAAP revenue
from solar projects totaling 42 MW, compared to 14 MW in the 2013 second
quarter and 48 MW in the 2012 third quarter.

Solar Energy segment GAAP operating income was lower year-over-year, largely
due to prior year benefits associated with a favorable restructuring
adjustment related to a contract settlement with Evonik, a canceled contract
with Conergy and higher solar project volume. Sequentially, operating income
was up slightly, driven largely by a $22.0 million contract settlement with
Gintech recognized in the 2013 third quarter and higher sales of solar
materials. Third and second quarter 2013 included $13.8 million and $11.7
million, respectively, of previously deferred GAAP revenue. Third quarter 2012
included $37.1 million due to the termination of a supply contract with
Conergy and $69.2 million from a favorable restructuring adjustment related to
the contract settlement with Evonik, offset by a $14.2 million asset
impairment charge.

Solar Energy: Non-GAAP
Solar Energy segment non-GAAP revenue was down year-over-year and up
sequentially. The year-over-year decrease primary reflects lower solar project
pricing and solar module sales, partially offset by higher solar wafer sales.
Higher sequential revenue was driven by increased sales of solar projects and
solar materials. Third quarter 2013 non-GAAP revenue included $22.0 million
from the termination of a supply contract with Gintech and 2012 third quarter
revenue included $37.1 million from the termination of a supply contract with
Conergy. Non-GAAP revenue was recognized from 75 MW of solar project sales in
the 2013 third quarter, compared to 51 MW in the 2013 second quarter and 74 MW
in the 2012 third quarter. Of the 75 MW that were recognized for non-GAAP
revenue in the 2013 third quarter, 56 MW were direct sales and 19 MW were
sale-leaseback transactions.

Segment non-GAAP operating income declined year-over-year, largely due to
prior year benefits associated with a favorable restructuring adjustment
related to a contract settlement with Evonik and a cancelled contract with
Conergy. Sequentially, operating income was up, driven primarily by higher
sales of solar projects and solar materials and a $22.0 million contract
settlement with Gintech. Third quarter 2013 included $22.0 million from the
termination of a supply contract with Gintech. Third quarter 2012 included
revenue of $37.1 million from the termination of a supply contract with
Conergy and $69.2 million from a favorable restructuring adjustment related to
the contract settlement with Evonik, offset by a $14.2 million asset
impairment charge.

Solar Project Pipeline, Backlog & Construction
The Solar Energy segment ended the 2013 third quarter with a project pipeline
of 3.1 GW, up 231 MW compared to the prior quarter and up 251 MW from the year
ago period. Backlog at September 30, 2013 was 1.1 GW, an increase of 28 MW
compared to the prior quarter. A solar project is classified as "pipeline"
where SunEdison has a signed or awarded PPA or other energy off-take agreement
or has achieved each of the following three items: site control, an identified
interconnection point with an estimate of the interconnection costs, and an
executed energy off-take agreement or the determination that there is a
reasonable likelihood that an energy off-take agreement will be signed. A
solar project is classified as "backlog" if there is an associated executed
PPA or other energy off-take agreement, such as a feed-in-tariff. There can be
no assurance that all pipeline or backlog projects will convert to revenue
because in the ordinary course of our development business some fall-out is
typical and certain projects will not be built.

Solar projects interconnected during the 2013 third quarter totaled 55 MW and
consisted of 42 MW of direct sale projects, 7 MW of sale-leaseback projects
and 6 MW of projects held on the balance sheet. During the year, solar project
development spend increased to take advantage of market opportunities. As of
September 30, 2013, 558 MW of the pipeline was under construction, compared to
200 MW the prior quarter and 117 MW a year ago. "Under construction" refers to
projects within pipeline and backlog, in various stages of completion, which
are not yet operational.

Outlook
The company provided the following key metrics for the 2013 fourth quarter and
revised metrics for full-year 2013. Assuming no significant worldwide economic
issues in these periods, the company expects the following:

For the fourth quarter 2013:

  oSemiconductor Materials revenue between $220 million and $230 million
  oSolar energy systems total non-GAAP sales volume in the range of 234 MW to
    264 MW
  oSolar energy systems MW retained on the balance sheet between 75 MW and 80
    MW
  oSolar energy systems MW completed between 309 MW and 344 MW
  oFully developed solar energy systems average project pricing between
    $2.75/watt and $3.50/watt
  oCapital spending between $28 million and $38 million

For the full year 2013:

  oSemiconductor Materials revenue between $920 million and $930 million
  oSolar energy systems total non-GAAP sales volume in the range of 405 MW to
    435 MW
  oSolar energy systems MW retained on the balance sheet between 100 MW and
    105 MW
  oSolar energy systems MW completed between 505 MW and 540 MW
  oTotal solar energy systems average project pricing between $3.10 /watt and
    $3.40 /watt
  oCapital spending between $130 million and $140 million

Use of Non-GAAP Measures
Management has determined that certain non-GAAP metrics for the Solar Energy
segment presented herein are the key metrics that will help investors
understand the ultimate income and near-term cash flows generated by our Solar
Energy segment. 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. Management has also determined
that the non-GAAP measure of "free cash flow" is useful to help investors
better understand the capital intensity of our business, including our project
financing operations. For a complete description of our non-GAAP measures, see
the non-GAAP reconciliation tables below.

Conference Call
SunEdison will host a conference call today, November 6, 2013, at 8:00 a.m. ET
to discuss the company's 2013 third quarter results and related business
matters. A live webcast will be available on the company's web site at
www.SunEdison.com.

A replay of the conference call will be available from 10:00 a.m. ET on
November 6, 2013, until 11:59 p.m. ET on November 20, 2013.To access the
replay, please dial (320) 365-3844 at any time during that period, using pass
code 306565. A replay will also be available on the company's web site at
www.SunEdison.com.

About SunEdison
SunEdison is a global leader in semiconductor and solar technology. SunEdison
has been a pioneer in the design and development of silicon wafer technologies
for over 50 years. With R&D and manufacturing facilities in the U.S., Europe,
and Asia, SunEdison enables the next generation of high performance
semiconductor devices and solar cells. SunEdison is also a developer of solar
power projects and a worldwide leader in solar energy services. SunEdison's
common stock is listed on the New York Stock Exchange under the symbol "SUNE."
For more information about SunEdison, please visit www.SunEdison.com.

Forward-Looking Statements
Certain matters discussed in this press release are forward-looking
statements, including that for the fourth quarter of 2013, the company expects
Semiconductor Materials revenue to be between $220 million and $230 million,
solar energy systems sold total non-GAAP sales volume to be in the range of
234 MW to 264 MW, solar energy systems MW retained on the balance sheet to be
between 75 MW and 80 MW, total solar energy systems completed to be between
309 MW and 344 MW, fully developed solar energy systems average project
pricing to be between $2.75/watt and $3.50/watt, and capital spending to be
between $28 million and $38 million; that for the 2013 full year, the company
expects Semiconductor Materials revenue to be between $920 million and $930
million, solar energy systems sold total non-GAAP sales volume to be in the
range of 405 MW to 435 MW, solar energy systems MW retained on the balance
sheet to be between 100 MW and 105 MW, total energy systems completed to be
between 505 MW and 540 MW, total solar energy systems average project pricing
to be between $3.10/watt and $3.40/watt, capital spending to be between $130
million and $140 million, and the retained value of solar energy systems
retained on the balance sheet of $1.23/watt and $123 million. The company
estimates compound annual growth rate through 2014 of 90% and MW completion to
be in the range of 800 MW and 1050 MW. 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; the availability of attractive project finance and other capital for
Solar Energy projects; 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 ability to effectuate and realize the savings from the
restructuring plan; our ability to maintain adequate liquidity and compliance
with our debt covenants; the need to impair long lived assets or other
intangible assets due to changes in the carrying value or realizability of
such assets; the effect of any antidumping or countervailing duties imposed on
photovoltaic cells and/or modules in connection with any trade complaints in
the United States, Europe or elsewhere; the result of any Chinese government
investigations of unfair trade practices in connection with polysilicon
exported from the United States or South Korea into China; changes to
accounting interpretations or accounting rules; existing or new regulations
and policies governing the electric utility industry; our ability to convert
solar project pipeline into completed projects in accordance with our current
expectations; dependence on single and limited source suppliers; utilization
of our manufacturing volume and capacity; the terms of any potential future
amendments to or terminations of our long-term agreements with our solar wafer
customers or any of our suppliers; general economic conditions, including
interest rates; the ability of our customers to pay their debts as they become
due; changes in the composition of worldwide taxable income and applicable tax
laws and regulations, including our ability to utilize any net operating
losses; failure of third-party subcontractors to construct and install our
solar energy systems; quarterly fluctuations in our Solar Energy business; 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; actions by
competitors, customers and suppliers; changes in the retail industry; damage
to our brand; acquisitions of pipeline in our Solar Energy segment; changes in
product specifications and manufacturing processes; changes in financial
market conditions; changes in foreign economic and political conditions;
changes in technology; changes in currency exchange rates; the potential
initial public offering of the semiconductor business and the anticipated
timing of such transaction, and the expected use of the proceeds received in
the separation 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.



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions; except per share data)
                                  Three Months Ended                Nine Months Ended
                                  September   June 30,    September September   September
                                  30, 2013    2013        30, 2012  30, 2013    30, 2012
Net sales                         $ 611.5     $ 401.3     $  601.6  $ 1,456.4   $ 1,929.2
Cost of goods sold                550.9       352.1       514.7     1,296.9     1,701.8
Gross profit                      60.6        49.2        86.9      159.5       227.4
Operating expenses:
Marketing and administration      91.1        78.8        68.9      240.2       235.2
Research and development          18.6        18.1        17.4      54.1        55.8
Restructuring and impairment
 (reversals)       —           (1.1)       (58.3)    (5.6)       (53.0)
charges
Operating (loss) income           (49.1)      (46.6)      58.9      (129.2)     (10.6)
Non-operating expense (income):
Interest expense                  45.2        34.6        28.0      127.3       100.3
Interest income                   (0.7)       (0.8)       (0.9)     (2.0)       (2.8)
Other, net                        5.5         2.4         (2.4)     9.0         0.1
Total non-operating expense       50.0        36.2        24.7      134.3       97.6
(Loss) income before
income
taxes and equity                  (99.1)      (82.8)      34.2      (263.5)     (108.2)
in
income (loss) of jointventures
Income tax expense (benefit)      17.1        13.6        (3.3)     50.2        27.9
(Loss) income before
equity   (116.2)     (96.4)      37.5      (313.7)     (136.1)
in income (loss) of joint
ventures
Equity in income (loss) of joint
ventures,                         4.1         —           0.9       3.8         (0.9)
net of tax
Net (loss) income                 (112.1)     (96.4)      38.4      (309.9)     (137.0)
Net loss (income) attributable to 4.1         (6.5)       (1.4)     9.6         (1.8)
noncontrolling interests
Net (loss) income attributable to $ (108.0)   $ (102.9)   $  37.0   $ (300.3)   $ (138.8)
SunEdison stockholders
Basic (loss) earnings per share   $ (0.47)    $ (0.45)    $  0.16   $ (1.32)    $ (0.61)
[*]
Diluted (loss) earnings per share $ (0.47)    $ (0.45)    $  0.16   $ (1.32)    $ (0.61)
[*]
Weighted-average shares used in
computing basic (loss) earnings   236.9       231.7       230.9     233.3       230.8
per share
Weighted-average shares used in
computing diluted (loss) earnings 236.9       231.7       232.0     233.3       230.8
per share
[*] During the three months ended September 30, 2013, June 30, 2013 and September 30,
2012, the company recorded an adjustment to redeemable noncontrolling interest which
affected the numerator of the EPS calculation by $(2.4) million, $(2.0) million and $(0.9)
million, respectively. During the nine months ended September 30, 2013 and September 30,
2012 the adjustment affected the numerator of the EPS calculation by $(6.8) million and
$(0.9) million, respectively.
RESULTS BY REPORTABLE SEGMENT
                                  Three Months Ended                Nine Months Ended
                                  September   June 30,    September September   September
                                  30, 2013    2013        30, 2012  30, 2013    30, 2012
Net sales:
Semiconductor Materials           $ 230.7     $ 239.0     $  240.3  $ 699.5     $ 689.0
Solar Energy                      380.8       162.3       361.3     756.9       1,240.2
Consolidated net sales            $ 611.5     $ 401.3     $  601.6  $ 1,456.4   $ 1,929.2
Operating (loss) income:
Semiconductor Materials           $ (0.8)     $ 3.6       $  8.7    $ 4.2       $ (8.1)
Solar Energy                      (17.3)      (25.2)      75.8      (53.3)      70.4
Corporate and other               (31.0)      (25.0)      (25.6)    (80.1)      (72.9)
Consolidated operating (loss)     $ (49.1)    $ (46.6)    $  58.9   $ (129.2)   $ (10.6)
income



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
                                                    September30, December31,
                                                    2013          2012
ASSETS
Current assets:
Cash and cash equivalents                           $  640.3      $  572.6
Restricted cash                                     117.1         72.4
Accounts receivable                                 335.3         220.4
Inventories                                         207.8         247.8
Solar energy systems held for development and sale  356.7         133.8
Prepaid and other current assets                    246.1         212.4
Total current assets                                1,903.3       1,459.4
Property, plant and equipment, net:
Non-solar energy systems, net of accumulated        1,151.8       1,213.1
depreciation
Solar energy systems, net of accumulated            1,884.9       1,459.9
depreciation
Restricted cash                                     59.0          50.2
Other assets                                        566.0         562.7
Total assets                                        $  5,565.0    $  4,745.3



                                                    September 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY                2013          2012
Current liabilities:
Current portion of long-term debt and short term    $  19.7       $  3.4
borrowing
Short-term solar energy system financing and        261.6         97.8
capital lease obligations
Accounts payable                                    667.5         477.0
Accrued liabilities                                 408.6         343.0
Contingent consideration payable related to         26.8          23.1
acquisitions
Deferred revenue for solar energy systems           120.2         113.1
Customer and other deposits                         34.8          77.2
Total current liabilities                           1,539.2       1,134.6
Long-term debt, less current portion                756.1         758.7
Long-term solar energy system financing and capital
lease obligations, less current                     2,080.9       1,508.4
portion
Customer and other deposits                         165.4         184.5
Deferred revenue for solar energy systems           101.7         146.0
Non-solar energy system deferred revenue            3.5           29.2
Other liabilities                                   334.7         306.5
Total liabilities                                   4,981.5       4,067.9
Redeemable noncontrolling interest                  —             11.3
Stockholders' equity:
Common stock                                        2.7           2.4
Additional paid-in capital                          449.0         647.7
Retained earnings                                   119.0         425.3
Accumulated other comprehensive loss                (83.7)        (39.8)
Treasury stock                                      —             (460.3)
Total SunEdison stockholders' equity                487.0         575.3
Noncontrolling interests                            96.5          90.8
Total stockholders' equity                          583.5         666.1
Total liabilities and stockholders' equity          $  5,565.0    $  4,745.3



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
                     Three Months Ended                    Nine Months Ended
                     September30, June 30,  September30, September30, September30,
                     2013          2013      2012          2013          2012
Cash flows from
operating
activities:
Net (loss) income    $  (112.1)    $ (96.4)  $   38.4      $  (309.9)    $  (137.0)
Adjustments to
reconcile net
(loss) income to
net cash
 (used
in) provided by
operating
activities:
Depreciation and     70.6          61.0      59.1          192.4         168.4
amortization
Stock-based          9.1           6.7       8.1           23.0          22.2
compensation
Expense (benefit)    42.7          (18.4)    6.4           40.2          4.3
for deferred taxes
Impairment of long   —             —         17.3          —             17.9
lived assets
Other non cash       (18.5)        7.4       (6.3)         (21.8)        15.4
Changes in
operating assets
and liabilities:
Accounts receivable  (79.9)        45.4      (14.9)        (95.0)        (50.5)
Inventories          38.6          (12.8)    16.8          44.4          79.4
Solar energy
systems held for
development          (25.8)        (94.2)    18.6          (156.8)       (114.5)

and sale
Accounts payable     115.6         57.8      43.1          105.9         (205.4)
Deferred revenue
for solar energy     (101.4)       6.0       (35.2)        (59.2)        101.0
systems
Customer and other   (5.7)         (14.2)    (15.0)        (39.5)        (34.7)
deposits
Accrued liabilities  41.5          (15.4)    (40.5)        49.4          (37.5)
Other long term      (43.8)        (1.1)     (74.5)        (38.1)        (140.2)
liabilities
Other                (33.5)        (18.2)    (18.4)        (42.6)        27.8
Net cash (used in)
provided by          (102.6)       (86.4)    3.0           (307.6)       (283.4)
operating
activities
Cash flows from
investing
activities:
Capital              (31.6)        (38.8)    (24.0)        (101.2)       (100.3)
expenditures
Construction of
solar energy         (138.8)       (75.1)    (35.5)        (261.3)       (193.2)
systems
Purchases of cost
and equity method    (1.0)         (27.1)    (8.9)         (46.6)        (35.2)
investments
Net proceeds from
equity method        6.3           50.4      (4.2)         68.4          3.0
investments
Change in            (34.5)        8.9       (31.6)        (16.8)        (1.3)
restricted cash
Cash paid for
acquisition, net of  (7.3)         —         —             (7.3)         —
cash acquired
Receipts from
vendors for          0.6           —         4.8           0.6           4.8
deposits and loans
Other                5.5           (0.6)     —             4.9           (0.1)
Net cash used in
investing            (200.8)       (82.3)    (99.4)        (359.3)       (322.3)
activities
Cash flows from
financing
activities:
Proceeds from
second lien term     —             —         196.0         —             196.0
loan
Cash paid for
contingent
consideration for    —             —         (54.2)        (0.8)         (58.0)

acquisitions
Proceeds from solar
energy system
financing and        296.4         231.5     189.4         626.4         720.3

capital lease
obligations
Repayments of solar
energy system
financingand        (13.8)        (38.2)    (29.9)        (64.4)        (184.0)

capital lease
obligations
Net repayments of
customer deposits
related to           (24.8)        (0.7)     (23.3)        (51.7)        (23.6)

long-term supply
agreements
Principal payments   —             (1.4)     —             (1.4)         (1.8)
on long-term debt
Common stock issued  239.6         (0.4)     —             239.6         (0.1)
(repurchased)
Proceeds from
(dividends to)
noncontrolling       14.4          11.4      (0.4)         25.9          16.4

interests
Debt financing fees  (2.6)         (14.9)    (21.7)        (25.6)        (35.2)
Other                (0.8)         —         —             (1.4)         —
Net cash provided
by financing         508.4         187.3     255.9         746.6         630.0
activities
Effect of exchange
rate changes on      (2.7)         (2.2)     1.7           (12.0)        (0.3)
cash and cash
equivalents
Net increase in
cash and cash        202.3         16.4      161.2         67.7          24.0
equivalents
Cash and cash
equivalents at       438.0         421.6     448.6         572.6         585.8
beginning of period
Cash and cash
equivalents at end   $  640.3      $ 438.0   $   609.8     $  640.3      $  609.8
of period



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURES
(In millions, except per share data and percentages) [A]
                    Three Months Ended                Nine Months Ended
                    September   June 30,    September September   September
                    30,                     30,       30,         30,
                    2013        2013        2012      2013        2012
Consolidated
Non-GAAP Financial
Measures
Non-GAAP net sales  $ 672.0     $ 491.6     $ 708.9   $ 1,594.9   $ 2,166.1
Non-GAAP gross      $ 63.9      $ 28.8      $ 113.2   $ 134.5     $ 299.3
margin
Non-GAAP gross      9.5       % 5.9       % 16.0    % 8.4       % 13.8      %
margin percentage
Non-GAAP operating  $ (45.8)    $ (67.0)    $ 85.2    $ (154.2)   $ 61.3
(loss) income
Non-GAAP net income $ 4.1       $ (42.4)    $ 70.5    $ (73.8)    $ 21.5
(loss)
Non-GAAP fully
diluted earnings    $ 0.00      $ (0.19)    $ 0.30    $ (0.35)    $ 0.09
(loss) per share
[*]
Reconciliations of
GAAP to Non-GAAP
Measures
SunEdison Inc.
Consolidated
GAAP net sales      $ 611.5     $ 401.3     $ 601.6   $ 1,456.4   $ 1,929.2
Direct sales [B]    17.1        80.5        41.1      82.7        118.6
Financing           43.4        9.8         66.2      55.8        118.3
sale-leasebacks [C]
Non-GAAP net sales  $ 672.0     $ 491.6     $ 708.9   $ 1,594.9   $ 2,166.1
GAAP gross margin   $ 60.6      $ 49.2      $ 86.9    $ 159.5     $ 227.4
Direct sales [B]    10.6        (14.0)      17.5      (7.5)       63.8
Financing           (7.3)       (6.4)       8.8       (17.5)      8.1
sale-leasebacks [C]
Non-GAAP gross      $ 63.9      $ 28.8      $ 113.2   $ 134.5     $ 299.3
margin
Non-GAAP Gross      9.5       % 5.9       % 16.0    % 8.4       % 13.8      %
Margin %
GAAP operating loss $ (49.1)    $ (46.6)    $ 58.9    $ (129.2)   $ (10.6)
(income)
Direct sales [B]    10.6        (14.0)      17.5      (7.5)       63.8
Financing           (7.3)       (6.4)       8.8       (17.5)      8.1
sale-leasebacks [C]
Non-GAAP operating  $ (45.8)    $ (67.0)    $ 85.2    $ (154.2)   $ 61.3
(loss) income
GAAP net loss
(income)
attributable to    $ (108.0)   $ (102.9)   $ 37.0    $ (300.3)   $ (138.8)
SunEdison
stockholders
Recurring Non-GAAP
adjustments, net of 112.1       60.5        33.5      226.5       160.3
tax [B,
 C and D]
Non-GAAP net income $ 4.1       $ (42.4)    $ 70.5    $ (73.8)    $ 21.5
(loss)
GAAP fully diluted
(loss) earnings per $ (0.47)    $ (0.45)    $ 0.16    $ (1.32)    $ (0.61)
share [*]
Recurring Non-GAAP
adjustments [B, C   0.47        0.26        0.14      0.97        0.70
and D]
Non-GAAP fully
diluted earnings    $ 0.00      $ (0.19)    $ 0.30    $ (0.35)    $ 0.09
(loss) per share
[*]
Weighted-average
shares used in
computing diluted   236.9       231.7       232.0     233.3       230.8
(loss) earnings per
share
[*] During the three months ended September 30, 2013, June 30, 2013 and
September 30, 2012, the company recorded an adjustment to redeemable
noncontrolling interest which affected the numerator of the EPS calculation
by $(2.4) million, $(2.0) million and $(0.9) million, respectively. During
the nine months ended September 30, 2013 and September 30, 2012 the
adjustment affected the numerator of the EPS calculation by $(6.8) million
and $(0.9) million, respectively.

[A] 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 non-GAAP financial measures for the Solar Energy
segment. The company believes that these non-GAAP measures represent important
internal measures of performance for our Solar Energy business, and better
reflect Solar Energy's results from operations 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 Solar Energy segment. SunEdison management
uses these measures to manage the Solar Energy segment because it believes
these measures are more representative of the operational health and
performance of that segment. 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 business 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 our 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 us 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 we have historically experienced
minimal losses related to these guarantees. For these direct sales, the sales
contracts have been executed and we have either received payment in full or
maintains a valid and legal note receivable for the full sales price that we
expect to collect within a short period after completion of the project.

[C] Adjustment relates to revenue from our sale-leaseback transactions
accounted for as financings. 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. It also includes progress of constructing solar energy
systems for which we have executed binding sale agreements meeting non-real
estate percentage of completion accounting requirements. Non-GAAP operating
income reflects a margin in an amount that will equal to the difference
between (a) the cash proceeds our financing partners in sale-leaseback
transactions considered financings and (b) our 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 we have continuing involvement with the system
through a purchase option. This system development margin will be recognized
under GAAP upon termination of the related lease through the non-cash
extinguishment of the debt offset by any remaining net book value of the solar
energy system asset.

[D] Income tax has been calculated using the estimated effective tax rate for
SunEdison in the jurisdictions giving rise to the related adjustments and
assumes sale-leaseback deferred tax assets will be realized.



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURES
(In millions) [A]
                            Three Months Ended            Nine Months Ended
                            September June 30,  September September September
                            30,                 30,       30,       30,
                            2013      2013      2012      2013      2012
Non-GAAP Financial Measures
Solar Energy Segment        $ 441.3   $ 252.6   $  468.6  $ 895.4   $ 1,477.1
Non-GAAP net sales
Solar Energy Segment
Non-GAAP operating (loss)   $ (14.0)  $ (45.6)  $  102.1  $ (78.3)  $ 142.3
income
Reconciliations of GAAP to
Non-GAAP
Measures
Solar Energy Segment
Solar Energy GAAP net sales $ 380.8   $ 162.3   $  361.3  $ 756.9   $ 1,240.2
Direct sales [B]            17.1      80.5      41.1      82.7      118.6
Financing sale-leasebacks   43.4      9.8       66.2      55.8      118.3
[C]
Solar Energy Non-GAAP net   $ 441.3   $ 252.6   $  468.6  $ 895.4   $ 1,477.1
sales
Solar Energy GAAP operating (17.3)    (25.2)    75.8      (53.3)    70.4
(loss) income
Direct sales [B]            10.6      (14.0)    17.5      (7.5)     63.8
Financing sale-leasebacks   (7.3)     (6.4)     8.8       (17.5)    8.1
[C]
Solar Energy Non-GAAP       $ (14.0)  $ (45.6)  $  102.1  $ (78.3)  $ 142.3
operating (loss) income
[A], [B], [C] - See
previous page



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURES
(In millions)
EBITDA CALCULATION [A]
                  Three Months Ended                     Nine Months Ended
                  September 30,    June 30,    September September  September
                                               30,       30,        30,
                  2013             2013        2012      2013       2012
Net (loss)
income
attributable to   $   (108.0)      $  (102.9)  $  37.0   $ (300.3)  $ (138.8)
SunEdison
stockholders
Net interest      44.5             33.8        27.1      125.3      97.5
expense
Depreciation
and               70.6             61.0        59.1      192.4      168.4
amortization
Income tax
expense           17.1             13.6        (3.3)     50.2       27.9
(benefit)
EBITDA [A]      $   24.2         $  5.5      $  119.9  $ 67.6     $ 155.0
[A] EBITDA is a non-GAAP disclosure consisting of net loss attributable to
SunEdison stockholders plus interest expense, net, depreciation and
amortization and income taxes. The Company believes that EBITDA is useful to
an investor in evaluating the company's operating performance and liquidity
because (i) it is widely used to measure a company's operating performance
without regard to items such as depreciation and amortization, which can vary
depending upon accounting methods and the book value of assets, (ii) it
presents a meaningful measure of corporate performance exclusive of the
company's capital structure and the method by which the assets were acquired,
and (iii) it is a widely accepted financial indicator of a company's ability
to service its debt, as the company is required to comply with certain
covenants and limitations that are based on variations of EBITDA in the
company's financing documents.



SUNEDISON, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURES
(In millions)
SUMMARY OF CONSOLIDATED DEBT OUTSTANDING
                   September 30,   December
                                   31,
                   2013            2012
Senior notes       $   550.0       $ 550.0
Term Loan          196.6           196.1
Semiconductor
Materials - Bank   17.4            16.0
debt
Solar Energy -     59.8            43.3
Debt
Solar Energy -
Current portion
of non-recourse
 system         271.9           97.8
financing debt
and capital
lease
 obligations
Solar Energy -
Non-recourse
system financing
debt
 and capital    2,022.6         1,465.1
lease
obligations,
less current
portion
Total              $   3,118.3     $ 2,368.3
NON-GAAP RECONCILIATION OF FREE CASH FLOW [A]
                   Three Months Ended                    Nine Months Ended
                   September 30,   June 30,    September September  September
                                               30,       30,        30,
                   2013            2013        2012      2013       2012
Net cash (used
in) provided by    $   (102.6)     $ (86.4)    $  3.0    $ (307.6)  $ (283.4)
operating
activities
Capital            (31.6)          (38.8)      (24.0)    (101.2)    (100.3)
expenditures
Construction of
solar energy       (138.8)         (75.1)      (35.5)    (261.3)    (193.2)
systems
Proceeds from
solar energy
system financing
and                296.4           231.5       189.4     626.4      720.3
 capital
lease
obligations
Repayments of
solar energy
system financing
and                (13.8)          (38.2)      (29.9)    (64.4)     (184.0)
 capital
lease
obligations
Proceeds from
noncontrolling     14.4            11.4        (0.4)     25.9       16.4
interests
Free cash flow     $   24.0        $ 4.4       $  102.6  $ (82.2)   $ (24.2)
[A]
[A] 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 flow 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 a lease,
resulting in a gain on sale that is deferred and not immediately included in
net income (loss). 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 income (loss).



SOURCE SunEdison, Inc.

Website: http://www.SunEdison.com
Contact: Media: Bill Michalek, Director, Corporate Communications, (636)
474-5443; Investors/Analysts: Chris Chaney, Director, Investor Relations,
(636) 474-5226
 
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